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South Bend Redevelopment Commission <br />Rescheduled Regular Meeting -November 2, 2007 <br />6. NEW BUSINESS <br />A. Public Hearing <br />(1) continued... <br />Ms. Jones asked if anyone else wanted to <br />speak. No one else wished to speak regarding <br />Resolution No. 2392. Ms. Jones closed the <br />public hearing. <br />(2) Commission approval requested for <br />Resolution No. 2392. <br />Mr. Peczkowski said he saw that $30M will <br />cover the parking garage at $22.2M and <br />streets at $6.4M, and ash removal at <br />$1,300,000. He wondered where the ashes <br />were coming from. <br />Mr. Inks said that is part of the site <br />improvements. He thought it had been fairly <br />well known in the community that that area <br />had been used to dispose of ash, which is not <br />a suitable building material. It needs to be <br />removed from the site and the site needs to <br />be back filled so that the parking garage and <br />the balance of the development can be build <br />there <br />Mr. Peczkowski's second question was about <br />the debt service at $3,742,000 over a period <br />of 20-25 years. That totals approximately <br />$74M, yet the bond is $30M. Mr. Inks <br />responded the lease payments include <br />principal and interest, so the principal <br />proceeds from the bond will be used to <br />construct the project, but when you make the <br />repayments you will be paying back that <br />principal plus interest. Ina 20-25 year term, <br />you are paying typically twice or more what <br />you are borrowing in principal. <br />19 <br />