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South Bend Redevelopment Commission <br />Regular Meeting –October 2, 2009 <br /> <br />5. OLD BUSINESS (CONT.) <br /> <br />A. Airport Economic Development Area <br /> <br />(1) continued… <br /> <br />did not prevail staff’s conservative estimate <br />of the Economic Value of the Current Lease <br />is $965,680. In addition, the relocation costs <br />could be $700,000 to $1,000,000. This <br />Agreement achieves both ends for a <br />significantly lower amount. <br /> <br />Staff recommends favorable consideration by <br />the Redevelopment Commission. <br /> <br />Mr. Nussbaum noted that he felt the <br />settlement was appropriate because it was <br />reasonable in amount, and any litigation <br />related to the right to renew the SASCO lease <br />would be uncertain, costly and time <br />consuming. This settlement allows the city <br />to move forward with the Ignition Park <br />project in a timely and cost effective fashion. <br />At the same time it preserves a business <br />which has historically been very important to <br />our community. <br /> <br />Mr. Varner questioned the unilateral nature <br />of the right to renew and wanted to know if it <br />was the Commission’s policy to have <br />renewals structured in that fashion. Mr. <br />Nussbaum responded that the option to <br />renew is subject to negotiation and either <br />party’s right to renew is dependent upon the <br />facts and circumstances of each situation. <br /> <br />CL <br />Mr. Downes made a motion to approve the Lease <br />OMMISSION APPROVED THE EASE <br />TASASCO <br />ERMINATION GREEMENT WITH <br />Termination Agreement with SASCO. Ms. King <br />seconded the motion. The motion carried on a vote of <br />four to one with Mr. Varner opposed. <br /> <br /> 5 <br /> <br />