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South Bend Redevelopment Commission <br />Regular Meeting -June 18, 2010 <br />Comcast pays the city $800,000 per year for <br />right of way. The Metronet is successful. <br />Each of the original investors put in <br />$250,000. Mr. Varner appreciates everything <br />it does, but he feels at some point it would be <br />appropriate for them to reimburse the city for <br />some of its expenditures on the Metronet's <br />behalf. Mr. Leone noted that the city <br />receives a quid pro quo allocation of a certain <br />number of fiber cable it can use for free. <br />Mr. Inks noted that the Erskine Village TIF is <br />also very successful, generating more tax <br />revenue than expected. We hope we can pay <br />off those bonds early also. In the case of <br />those bonds, they cannot be paid off quite as <br />early due to the terms of their sale. There are <br />no call provisions unti12017. We intend <br />collect the TIF and let accumulate in an <br />account, building a cash balance, waiting for <br />the earliest possible time we can pay off the <br />full amount. <br />Mr. Leone noted that the Commission cannot <br />release any of the TIF funds for other <br />jurisdictions while those bonds are <br />outstanding. <br />Mr. Varner asked about the shortage of TIF <br />in the Northeast due to the third hotel not <br />being yet built. Mr. Inks responded that the <br />cash we are expecting to bring in for that <br />allocation area will be about $300,000 short <br />of meeting the bond obligation for Eddy <br />Street Commons in 2011. We are in the <br />process of renegotiating the development <br />agreement for Eddy Street Commons. We <br />have been fortunate, given the economic <br />times, that our construction costs have been <br />significantly lower than anticipated. We <br />believe there is close to $2,000,000 of <br />unspent funds that were committed to the <br />25 <br />