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South Bend Redevelopment Commission <br />Regular Meeting - March 19, 1999 <br />6. NEW BUSINESS (CONT.) <br />a. continued.... <br />The total amount to be borrowed is $1.8 <br />million from the Section 108 Loan <br />program, which is administered by the <br />Department of Housing and Urban <br />Development. HUD will sell a series of <br />notes, which will provide the funds to the <br />Redevelopment Authority for purchase of <br />the properties. The Redevelopment <br />Commission will make lease payments to <br />the Redevelopment Authority for these <br />properties. <br />The maximum lease payment allowable, <br />under the repayment of the Section 108 <br />Loan, is $144,000 and that amount is for <br />the purchase of the Studebaker Lot. The <br />loan payment would be augmented to <br />$344,000 after the Main and Jefferson <br />Streets property is ready for use or July 25, <br />2003, whichever is later. No lease <br />payments can be made until the properties <br />have been purchased. The Studebaker <br />Museum Lot was purchased with other <br />funds and a portion of the $1.8 million <br />borrowed will be used to reimburse those <br />funds. <br />Mrs. Kolata also stated that Resolution <br />No. 1673 is on the Common Council's <br />agenda for Monday, March 22, 1999, <br />because the Council must approve any <br />Lease between the Redevelopment <br />Authority and Redevelopment <br />Commission. <br />H: \WPDATA \COMMSN\031999.M1N -5- <br />