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South Bend Redevelopment Commission <br /> Regular Meeting—July 12, 2011 <br /> 6. NEW BUSINESS (CONT.) <br /> G. South Side Development Area <br /> (1) continued... <br /> obligation of the TIF is the pledge of TIF to <br /> repayment of an EDC bond. The <br /> Redevelopment Commission currently has <br /> cash on hand in the amount of$5,364,446 <br /> with an annual bond payment of about <br /> $500,000. At the end of the year we expect <br /> to receive additional tax receipts of about <br /> $1,285,000. If this amount is received, then <br /> we will have sufficient funds to defease the <br /> bonds. The first opportunity to pay off the <br /> bonds is not until February, 2017, so the <br /> amount to defease the bonds will need to <br /> include the interest payments through that <br /> date. <br /> If the tax receipts at the end of the year are <br /> not sufficient to defease the bonds, then the <br /> Redevelopment Commission will likely need <br /> to collect at least part of the increment for <br /> taxes payable in 2013. <br /> Once the bonds are defeased, then the <br /> Commission can consider whether the <br /> Erskine Village TIF should be undeclared <br /> and the increment released back to the main <br /> South Side Development Area, or released in <br /> perpetuity to the other taxing jurisdictions as <br /> was the Erskine Commons TIF. <br /> Mr. Varner asked what the annual income <br /> expected for this TIP Mr. Inks responded <br /> that it is $2,600,000 annually. The city <br /> received $1,285,000 at the end of June and <br /> expects a similar of higher amount at the end <br /> of year 2011. <br /> 29 <br />