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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 />that will not be available for other projects. <br />He believes the city should be up front about <br />the total cost, as a bank must be in making its <br />loans. He would like to see that language put <br />into the Development Agreement so it is <br />clear. Mr. Inks didn’t think it was <br />appropriate information for this document. <br />The city has made public the debt service to <br />be paid on the bonds. This document talks <br />about the actual purchase price. Other <br />documents address the cost of financing. <br /> <br />Mr. Inks noted that Section 1.10 talks about a <br />hotel agreement. We will be receiving a <br />Letter of Intent from the developer for the <br />hotel development prior to the sale of the <br />bonds. <br /> <br />Mr. King asked about the hotel agreement. <br />At this point there’s no definitive agreement <br />by the hotel developers with Kite or with us <br />to development the hotel? So we’re at risk to <br />the extent of whatever amount of TIF is <br />attributable to the projected assessed value of <br />the hotel…I think the hotel constitutes a <br />reasonably good sized chunk of the <br />anticipated assessed value of the project. Mr. <br />Inks responded that there is some risk. Our <br />understanding is that they will provide a full, <br />formal Letter of Intent. Mr. Hill noted that <br />no bonds would be issued until that Letter of <br />Intent is presented. <br /> <br />Section 1.2 talks about the pledged funds that <br />the Redevelopment Commission will have <br />available to make the lease payments. <br /> 11 <br /> <br />