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South Bend Redevelopment Commission <br />Regular Meeting –August 6, 2010 <br /> <br />6. NEW BUSINESS (CONT.) <br /> <br /> <br /> B. Airport Economic Development Area <br /> <br />(1) Approval of Loan Agreement, Promissory <br />Note and Grant Agreement for <br />environmental remediation at 1100 Prairie <br />Avenue. <br /> <br />Ms. Kolata noted that at the July 23 meeting <br />the Commission approved a loan and grant <br />from the city’s environmental revolving loan <br />fund for environmental remediation at the <br />Studebaker foundry. This is the final <br />approval of the Loan Agreement, the <br />Promissory Note and the Grant Agreement <br />with the City of South Bend. It provides for <br />a grant of $160,000 and a loan not to exceed <br />$500,000. The loan is a 10-year loan at 0% <br />interest with no payments for the first five <br />years. The reasoning behind that is that EPA <br />supplied the funds for the loan fund. The <br />goal is to spend all the money, not get any of <br />it repaid, then close out the grant. We will <br />have a close-out agreement with EPA that <br />tells us that any money that comes in after <br />the close-out will belong to the City of South <br />Bend and will be subject to any terms we <br />negotiate with EPA. It will probably have <br />some sort of environmental requirement on <br />it, but will be the city’s money. <br /> <br />Mr. Downes asked when demolition will <br />begin. Ms. Kolata responded that the bids <br />came in last week. Staff intends to interview <br />at least the two low bidders. The bids ranged <br />from just under $6M to over $10M. That’s <br />for demolition of both the foundry and the <br />engineering building. The Board of Public <br />Works will award the bid on August 23. <br /> <br /> <br /> 9 <br /> <br />