February 26, 2010

President, Hudson Town Council

P.O. Box 97

Hudson, Indiana 46747

Dear Sirs:

In reviewing the activities of the immediate past year, the Hudson Redevelopment Commission continued with one new activity. There is the possibility that a developer will construct and lease a new store to Dollar General, just east of and abutting the existing Family Dollar. There will be some expenses with this new business in the Redevelopment area. The expense will be extending the water and waste water lines through that property to prevent them becoming landlocked.

Continuing activities are:

1. The reimbursement of utility easements, driveway permit applications, and drainage at the Family Dollar site to be reimbursed over a five (5) year period. Payment on this obligation began in December, 2008. The annual reimbursement will be $8,000 per year.

2. The western extensions of the water and sewer lines, completed in early 2003, and the eastern extensions of the water and sewer lines, completed in 2008, to support the Family Dollar site, remain a financial obligation. During 2008, the two loans for the east extensions and for the western extensions were combined into one loan at the end of 2008.

These improvements have had their price. The Commission currently has a total debt of $179,676.53 as of the end of 2009. The existing debt is being repaid from Tax Increment Funds (TIF). The end of the year balance in the TIF funds was $56,871.67. The Tax Increment Replacement (TIR) funds were not approved for the tax year of 2009, pay 2010 as there was not a demonstrated need. However, existing fund sources should insure the ability to continue payments on the current debt.

Sincerely,

Kathy Kope

President, Hudson Redevelopment Commission

Cc: Auditor, Steuben County