2. Minutes 1/15/10 Meeting - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Meeting -January 15, 2010 services, maximize course revenue and profit, and develop long range business strategy. The contract describes those services, local and corporate, including staffing. Kitson will prepare an annual business plan and operating budget each year. The city will open a new Operating Account to be maintained by Kitson. If the account reaches a negative balance, that would be cause for termination of the contract. The account and accounting procedures are being established based on advice from the city controller and they parallel the procedures in the Century Center Management Agreement, recently approved by the city. Kitson will prepare monthly financial statements. Insurance and indemnification issues are still being worked out. The city will provide casualty insurance and will self insure for liability. Kitson will provide various liability insurances. The term of the contract will be three years, with atwo-year extension unless notice is given. If the contract is terminated without cause, Kitson will receive $40,000 if during the first year, $30,000 if during year two, and $20,000 during year three. Kitson will receive a monthly management fee of $8,000 and $2,000 per month for accounting. There is an incentive fee of 5% of the gain in gross revenue over the average 2009 and 2009 gross revenue (average is $1,520,000). This differs from the proposed incentive fee the Commission approved at the time it awarded the proposal because of the tax exempt bonds on the course. We aren't allowed to tie incentive fees to net profits on the course. It meets legal requirements to tie it to gross revenue. There will also be a discretionary incentive fee of 7