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South Bend Redevelopment Commission Regular Meeting – December 8, 2022 <br />Matt Barrett, a resident, asked for a sense of the difference between the interest <br />rate of just a TIF bond and a general obligation bond. <br />Emma Adlam, Baker Tilly stated the interest rate difference would be if we did a <br />pure TIF fund or if we did the property tax backup bond issue. The pure TIF bond <br />for the tax-exempt public infrastructure project we were estimating around 6 ¼% <br />true interest cost and for this bond issue with the backup we are estimating around <br />5.45%. <br />Matt Barrett asked why two parking garages. Is there a cost difference. <br />Mr. Bauer states one of the garages would be a cast-in-place garage which would <br />include housing built on top of it. The other parking garage would just be a pre- <br />cast garage. Part of the reason for the garages is different amenities in each <br />block. Both blocks contain housing and then one block contains a health and <br />fitness center. The other contains medical office space, retail space and the sky <br />bridge over to Memorial Hospital. The larger garage could serve as parking for <br />memorial employees as well as for the residents of the housing there and those <br />utilizing the office and retail space. Then the other garage would be primarily for <br />residents of the housing units around that garage, and then people coming to the <br />Beacon health and fitness center. <br />Mr. Barrett asked about private investment. <br />Mr. Bauer stated Great Lakes Capital is the developer of the health and lifestyle <br />district. Beacon as a partner is the current property owner of the site. <br />Commissioner Wax asked if the city is anticipating being a part of the bigger <br />picture. <br />Mr. Bauer stated as part of our negotiations, we are looking at parking rates for the <br />new FTEs that are created by the tower expansion and for the employees to park <br />within one of these structures. There could be a bulk rate for employees. No TIF <br />funding is going towards the tower, but one is not successful without the other. <br />This is our full contribution. There is also $11.9M of Ready grant funds towards <br />this. The tower site wouldn’t be eligible for a tax abatement. <br />Matt Barrett asked what happens to Memorial’s current space. <br />Mr. Bauer states it is part of an on-going conversation that we are having but there <br />is no news to share. We are having active conversations. <br />Commissioner Sallie suggests inviting a representative from Beacon to come and <br />present what they are thinking of doing with the vacant space when the health and <br />lifestyle center is moved on campus. That way we don’t speculate what will be. <br />Mr. Bauer states that we would be happy to reach out and invite them but they will <br />not have an answer but we can invite them in the first quarter of 2023.