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South Bend Redevelopment Commission <br />Regular Meeting -February 15, 2008 <br />6. NEW BUSINESS (CONT.) <br />B. Housing <br />(1) continued... <br />fulfill the program requirements and payback <br />would be required. <br />Mr. Peczkowski asked what re-syndication of <br />the tax credits means. Mr. Jurgonski <br />responded that tax credits are issued by the <br />State of Indiana. South Bend Heritage <br />Foundation will set up a taxable, wholly <br />owned subsidiary to own the credits which <br />can be sold to raise money for the <br />improvement project. <br />Mr. Peczkowski noted that this item's <br />presence on the Commission's agenda must <br />mean the Commission has the option to <br />refuse to forgive the loan. Why might it do <br />so? Mr. Jurgonski explained that the <br />financing of the previous project could not <br />have the loan written as forgivable, so it was <br />not. The Commission is not obligated. <br />Forgiveness of the loan, however, would help <br />finance the current improvements. <br />Mr. Peczkowski asked who the beneficiaries <br />of the tax credits are. Mr. 7urgonski <br />responded that large corporations would <br />purchase the tax credits and use them to <br />reduce their taxes. <br />Upon a motion by Mr. King, seconded by <br />Mr. Downes and unanimously carried, the <br />Commission approved Resolution No. 2439 <br />regarding forgiveness of a promissory note <br />secured by a real estate mortgage for the <br />Historic Dunbar Corner project subject to <br />execution of an agreement between the <br />COMMISSION APPROVED RESOLUTION NO. 2439 <br />REGARDING FORGIVENESS OF A PROMISSORY <br />NOTE SECURED BY A REAL ESTATE MORTGAGE <br />FOR THE HISTORIC DUNBAR CORNER PROJECT <br />SUBJECT TO EXECUTION OF AN AGREEMENT <br />BETWEEN THE COMMISSION AND SOUTH BEND <br />HERITAGE FOUNDATION TO CONTINUE THE <br />PROJECT'S LOW/MODERATE INCOME <br />AVAILABILITY FOR ANOTHER 15 YEARS, <br />9 <br />