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South Bend Redevelopment Commission <br />Regular Meeting -May 16, 2008 <br />6. NEW BUSINESS (CONT.) <br />B. South Bend Central Development Area <br />(7) continued... <br />the city do as it has funds. <br />Mr. King noted that Century Center receives <br />an annual allocation from the Hotel Motel <br />Tax Board of the proceeds of the innkeepers <br />tax to pay for maintenance and repair as well <br />as subsidizing operations. However, because <br />of the urgent nature of these repairs and the <br />amounts of money involved, we decided it <br />would be more economical to do all of these <br />projects at the same time and use bond <br />financing to fund them rather than do them <br />on apay-as-you-go basis. The bond will be <br />repaid from the annual Hotel Motel Tax. <br />Mr. Downes asked about the possibility of <br />Century Center creating a sinking fund to pay <br />for repairs like this in the future. Mr. King <br />responded by explaining the nature of <br />Century Center's funding from the Hotel <br />Motel Tax Board. Century Center does not <br />operate at a profit; it never has and never <br />will. It receives funds from the Hotel Motel <br />Tax Board as necessary to break even each <br />year. Under new management performance <br />has been improving, and there is less money <br />needed from the Hotel Motel Tax Board. <br />Nevertheless, Century Center ends up having <br />a net profit and loss of zero at the end of each <br />year. There would be no money to put into a <br />sinking fund. The Hotel Motel Tax Board, <br />however, maintains a reserve for the use of <br />Century Center and the Convention & <br />Visitors Bureau, the two units that are funded <br />by that tax. The Hotel Motel Tax Board will <br />be putting almost $900,000 of its reserve into <br />18 <br />