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South Bend Redevelopment Commission <br />Rescheduled Regular Meeting –February 6, 2008 <br /> <br />6. NEW BUSINESS (CONT.) <br /> <br />F. Northeast Neighborhood Development Area <br /> <br />(1) continued… <br /> <br />Section 1.9 addresses the funding amount, <br />the $35,000,000 that has been consistently <br />talked about for this development site. This <br />agreement includes an additional $1.7M <br />which is reserved for the Triangle <br />development. The total amount of money <br />addressed in the Development Agreement is <br />$36,700,000. The amount of money <br />available on the Kite side of the project is <br />$35M. That will be derived from two <br />sources: the project proceeds from the bond <br />issuance and from $5M in cash resources <br />from Major Moves and sewer capital from <br />the city’s accounts. <br /> <br />It is important to understand that if the net <br />proceeds from the bond are less than the <br />anticipated $30M (because we have to fund a <br />debt service reserve, or because the interest <br />rates go up) the city is not obligated to fund <br />those shortfalls in the bond proceeds. The <br />city’s entire obligation is the $33M, <br />including the $5M cash). On the other hand, <br />if we realize more in bond proceeds, the <br />city’s requirement would only be $3M in <br />cash, capped at $35M total. <br /> <br />Mr. Peczkowski asked if there are any TIF <br />revenues in the payback of the bonds. Mr. <br />Inks responded that the next agenda item is a <br />pledge resolution pledging TIF revenues for <br />repayment of the bonds. <br /> <br />Mr. Peczkowski noted that the real cost of <br />the project is $79M, including interest on the <br />bonds. That is the total amount of money <br /> 10 <br /> <br />