RM 07-07-78 - Laserfiche WebLink

Home Browse Search

South Band Redevelopment Commission Page 12, July 7, 1978 7. PROPRESS REPORTS, Continued to 3e appropriated, which is the normal procedure. After it is approved and appropriated by the Council, we then have the right when we wish to spe d some money, to file a takedown - we call it - with the Community Dev lopment Department - to take down from them the money from this letter of credit for the purpose that we want to use it for. Mr. Nimtz: I think we went through this some five or six weeks ago - it get involved with the national debt in that in order to keep the debt fron rising spectacularly - although I think it is - they issue a letter of :redit. They do not send us a check, because once they issue us a the k, that is a debit to the Treasury of the United States and it in- creases the national debt. So we get a letter of credit. Once we take the money down, then the check is issued and so when you consider all of these programs in the entire U.S., the thing is enormous. Ours is not too much but when you consider - I don't know how many cities might be participating in this program, it keeps them from issuing a huge amount of money to the cities and the cities then hold the money. They hold it and we get the authorization - or takedown - to request a check for a certain amount of money. Mr. Wiggins: Somebody wised up to the fact that when we got the whole bundle of oney, we could reinvest it and make money on the money. Now they (th Federal Government) are going to do that. Mr. Anderson: My question is, will the project proceed in those areas that are not affected by the lawsuit, prior to the decision from downstate regarding the appeal? Mr. Brownell: There isn't any area that is not affected by the lawsuit is the e? Mr. Butler: You mean with respect to Century Mall? Mr. Wiggins: What he is saying- is "will we proceed to buy property ?" Ms. Derbeck: Which you could, very shortly... there is no injunction. Mr. Butler: There is no formal injunction, however the court has asked the ..in effect, Redevelopment or South Bend's cooperation so that they do not have to face that issue. We will have to decide for how long we can cooperate I guess. Mr. Anderson: So in other words.. Mr. Butler: We are getting up against the cutter - we've got an April dead- line, we are supposed to have property available for sale in April (1979). Ms. Derbeck: Available for sale or demolished? Mr. Butler: No, available for sale. But the demolition can come some time