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South Bend Redevelopment Commission <br /> Regular Meeting—June 28, 2011 <br /> 5. OLD BUSINESS (CONT.) <br /> A. Proposal from Radiant Networks continued... <br /> and become more competitive on a regional, <br /> national, international basis because we've lowered <br /> their cost of connectivity. Metronet has allowed <br /> new businesses to grow. <br /> Ms. Hedman noted that in terms of the cost of the <br /> infrastructure, we anticipate that is a cost that <br /> Metronet will pick up. The cost for the three <br /> locations in the pilot, downtown South Bend being <br /> the fourth, will cost the Metronet $46,000. The <br /> downtown cost will be $22,000. <br /> Mr. Varner asked what the revenues are for <br /> Metronet, annually. Ms. Hedman responded for <br /> the St. Joe Valley Metronet they're about <br /> $300,000. <br /> Mr. Varner: is there another entity associated with <br /> Metronet? Ms. Hedman responded that SJVM is a <br /> wholly owned subsidiary of St. Joe Valley <br /> Metronet. A private for-profit institution. The <br /> SJVM is also private. <br /> Mr. Varner asked what the revenues are for the <br /> SJVM. Ms. Hedman replied that the subscription <br /> piece that is charged on an annual basis is <br /> $800,000 for both entities. Though they are <br /> separate entities for tax purposes, they have same <br /> staff and are one entity as far as mission and <br /> operations. They are separated for legal tax <br /> accounting reasons on how assets and expenses are <br /> legally allocated. They issue a consolidated <br /> financial statement. <br /> Mr. Varner continued to say that the City of South <br /> Bend has contributed approximately $3,000,000 <br /> the Metronet. With revenues of$800,000 per year <br /> he thinks it can cover future infrastructure costs. <br /> 8 <br />