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South Bend Redevelopment Commission <br />Regular Meeting —July 12, 2011 <br />6. NEW BUSINESS (CONT.) <br />G. South Side Development Area <br />(1) continued... <br />obligation of the TIF is the pledge of TIF to <br />repayment of an EDC bond. The <br />Redevelopment Commission currently has <br />cash on hand in the amount of $5,364,446 <br />with an annual bond payment of about <br />$500,000. At the end of the year we expect <br />to receive additional tax receipts of about <br />$1,285,000. If this amount is received, then <br />we will have sufficient funds to defease the <br />bonds. The first opportunity to pay off the <br />bonds is not until February, 2017, so the <br />amount to defease the bonds will need to <br />include the interest payments through that <br />date. <br />If the tax receipts at the end of the year are <br />not sufficient to defease the bonds, then the <br />Redevelopment Commission will likely need <br />to collect at least part of the increment for <br />taxes payable in 2013. <br />Once the bonds are defeased, then the <br />Commission can consider whether the <br />Erskine Village TIF should be undeclared <br />and the increment released back to the main <br />South Side Development Area, or released in <br />perpetuity to the other taxing jurisdictions as <br />was the Erskine Commons TIF. <br />Mr. Varner asked what the annual income <br />expected for this TIF? Mr. Inks responded <br />that it is $2,600,000 annually. The city <br />received $1,285,000 at the end of June and <br />expects a similar of higher amount at the end <br />of year 2011. <br />29 <br />