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South Bend Redevelopment Commission <br />Regular Meeting -November 21, 2008 <br />6. NEW BUSINESS (CONT.) <br />F. Northeast Neighborhood Development Area <br />(1) continued... <br />accordance with the Development <br />Agreement. At the end of the lease, Kite will <br />be required to take the garage, so that the city <br />has no responsibility at the end for major <br />capital expenses. <br />It is important this lease be put into place as <br />soon as possible to make sure the property <br />tax records reflect the newly taxable nature <br />of this property. A property tax assessment <br />will take place March 1, 2009 when the <br />garage will be more than 50% complete. On <br />that date the property will need to be leased <br />by a taxable entity so that property taxes can <br />be collected in 2010 to make payment on the <br />Eddy Street Bonds. <br />Mr. Varner asked if staff was confident that <br />revenue from taxes from the two hotels and <br />the garage will be sufficient to make lease <br />payments on the bond. Mr. Inks responded <br />that he is. An update by Crowe Horwath at <br />the end of May 2008, showed increased <br />revenue from the earlier estimate. <br />Mr. Inks noted that the first assessment date <br />is March 1, 2009. Per the development <br />agreement, we expected the parking garage <br />to be to be 50% complete by that time. We <br />think we will be at least 50% complete by <br />then. It is important for us to put this lease in <br />place so that it becomes taxable property <br />before March 1. Those taxes that will be <br />paid will be necessary to make the first bond <br />payments. <br />13 <br />