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South Bend Redevelopment Commission <br />Regular Meeting - February 19, 1999 <br />6. NEW BUSINESS (CONT.) <br />m. continued.... <br />property at the corner of Main and <br />Jefferson Streets and for the property north <br />of the Studebaker Museum. In November <br />1997, the City of South Bend, as part of its <br />application for Community Development <br />Block Grant funds, requested and received <br />approval from the Department of Housing <br />and Urban Development for a Section 108 <br />Loan. This is a loan against the future <br />federal payments of Community <br />Development Block Grant to the City of <br />South Bend. The City has completed <br />several Section 108 Loans in the past. The <br />application which was submitted in <br />November 1997 was for $2.4 million. The <br />$1.8 million allocated is for the acquisition <br />project at Main and Jefferson Streets and a <br />Lot north of the Studebaker Museum at the <br />corner of Monroe and Lafayette Street. <br />There was $600,000 allocated for other <br />projects in the city. The intent at that time <br />was that the $600,000 would be paid back <br />with funds from the Community <br />Development Block Grant; however, the <br />City would use other funds to repay the <br />$1.8 million. These other funds would <br />consist of Tax Increment and Economic <br />Development Income Tax. The <br />Department of Housing and Urban <br />Development approved the Section 108 <br />application, but when it came time to <br />execute the documents, things started to <br />get confusing because the City was not <br />pledging the Community Development <br />Block Grant funds to repay a portion of the <br />loan. <br />HAWPDATA \COMMSN\021999.M1N -21- <br />