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South Bend Redevelopment Commission <br /> Regular Meeting—September 13, 2011 <br /> 6. NEW BUSINESS (CONT.) <br /> C. Airport Economic Development Area <br /> (1) continued... <br /> funds. Why a bond issue in this case? Mr. <br /> Inks responded that with Ivy Tech, the city <br /> was acquiring property which was then <br /> conveyed to Ivy Tech. In that case the <br /> property already existed, under ownership <br /> and the facility was already being <br /> constructed. One method to assist was to do <br /> a bond issue and under the TIF statutes, TIF <br /> money can be used to reimburse bonds of <br /> this nature. He noted that the Commission <br /> could consider this option for other types of <br /> facilities. <br /> Mr. Downes asked for explanation for the <br /> use of"A" bonds. Mr. Garatoni explained <br /> that"A" bonds are state authorized under a <br /> federal program and whoever utilizes these <br /> bonds receives a credit against their income <br /> taxes. The state allows $2 million for each <br /> project and locators for both the school's two <br /> projects, one in each year, allows the two <br /> "A" bonds. `B" bonds are based upon <br /> evaluation of the school and the cash flow to <br /> the school and the amount of money will be <br /> released to them. We are in negotiations <br /> with banks now for their sale. <br /> Mr. Downes asked if the whole project <br /> would need to be completed in order to apply <br /> for those. Mr. Metreiver responded no, it's <br /> not being done concurrently. <br /> Ms. King asked what happens if some of <br /> these sources are not granted. Mr. Metreiver <br /> responded that the Garatoni Family <br /> Foundation becomes a long-term owner. Ms. <br /> 16 <br />