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South Bend Redevelopment Commission <br />Regular Meeting –May 7, 2010 <br /> <br />7. PROGRESS REPORTS (CONT.) <br /> <br />Mr. Inks also reported that Blackthorn Golf Course was <br />planning to lease a mower and another piece of <br />equipment. The staff there are having trouble finding a <br />leasing vendor who could comply with the city’s leasing <br />policy that prohibits fees for late payments. A <br />suggested solution is that the Commission loan $30,000 <br />to the golf course to purchase the badly needed <br />equipment. Repayment would be from the golf course’s <br />operating revenue over three to five years. There are <br />two additional items that the golf course needs to lease <br />that have not been approved in the budget: a van for <br />$20,000 and a new cart fleet for about $240,000. <br /> <br />Commissioners asked how the carts were leased before. <br />Mr. Leone explained that it is a Board of Public Works <br />policy that city contracts cannot contain language to pay <br />a penalty for late payments. Mr. Leone said that the <br />policy results from potential personal liability for certain <br />kinds of penalties and interest by those who are either <br />administering or approving under certain conditions. <br />We are trying to protect the golf course from having that <br />situation occur. <br /> <br />Ms. King asked if the Commission could opt out of that <br />policy. Mr. Leone said it would be a question of risk. <br />In order to adhere to the business practices that these <br />lessors have in place industry wide, are we willing to <br />increase the risk to those folks that are involved in the <br />administration of these particular leases? <br /> <br />Mr. Downes asked if using the $300,000 for the golf <br />course will get in the way of some other project we want <br />to do in the Airport Economic Development Area. Mr. <br />Inks did not feel it would. <br /> <br />C <br />Upon a motion by Mr. Downes, seconded by Ms. King <br />OMMISSION APPROVED A LOAN TO <br />BGC <br />LACKTHORN OLF OURSE FOR MOWING <br />and unanimously carried, the Commission approved a <br />EQUIPMENT IN AN AMOUNT NOT TO EXCEED <br />loan to Blackthorn Golf Course for mowing equipment <br />$35,000, <br /> SUBJECT TO LEGAL APPROVAL <br />in an amount not to exceed $35,000, subject to legal <br />approval. <br /> 16 <br /> <br />