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South BendlRedevelopment Commission <br />Regular Me ting - April 11, 1980 <br />7. PROGREOS REPORTS (continued) <br />MrI. Ellison continues... <br />In any event, the matter is up in the <br />air as to whether or not it is permitted <br />to lease a facility to a political entity, <br />when that facility was acquired in part <br />with federal funds. <br />Mr. Nimtz: It is my guess that there would <br />be a HUD regulation concerning this matter. <br />Mr. Ellison: I have done some research on <br />my own and I haven't been able to find any <br />prophibition. I believe HUD's judgement <br />is no ... the rationale will be something <br />like this ... "you can't use community <br />development dollars or federal dollars for <br />po itical purposes ". They will reason <br />that if you acquire property with those <br />dollars no use connected with that <br />property can be political in nature. <br />The only problem I would have with <br />that rationale is the question of intent. <br />Ou intent was not to acquire property <br />to lease it to a political entity. Rather, <br />we clearly acquired the property to make <br />way for the mall project. In effect, we <br />are talking about interim uses because <br />of the decision to delay the demolition <br />of property. Thus, there can be no <br />coimection between our intent when <br />we started and the question at hand. <br />Ho efully, by our next meeting, we will <br />ha *e an answer. <br />Mr Nimtz: Mr. Ellison I believe your <br />ra lionale is correct in how HUD will <br />re ct. <br />MrJ Anderson: What property are you <br />referring to in renting Brademas? <br />Mr. Ellison: They had requested to <br />lease either the Business Systems <br />property or Gallenkamp from the <br />Br demas campaign organization. <br />-26- <br />