2 Minutes12-03-10 Meeting - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Meeting –December 3, 2010 plishes that goal. Second, that Host maintains the status of the Marriott Hotel in an upscale or upper upscale fashion. Those are terms in the hotel business. This agreement accomplishes that as well. In order to move this project forward the city has pledged $6.5M toward the purchase of st the parking garage located at the 1 Source Center. The $6.5M proceeds will be allocated according to the current ownership of the garage. Seventy percent of the garage is owned by Host; thirty percent is owned by st 1 Source. The sources for the $6.5M are UDAG repayments and some COIT funds. The consideration for the parking garage will st go 70% to Host and 30% to 1 Source. In exchange for that, the city will receive an st agreement from 1 Source that it will renew st its lease for ten years; 1 Source will make st improvements to not only the 1 Source Center downtown and to other areas where st 1 Source has properties in South Bend, the most important of which is the First Bank Building at the northwest corner of Jefferson and Main. On the Host side, Host will continue to operate the hotel at an upper upscale or upscale hotel, making improvements to the hotel as well. Also important to this transaction is that both st Host and 1 Source, as they do today, will continue to assume and maintain the garage and make any capital improvements to it that are necessary. They will be entitled to receive the revenues from the garage and those revenues will be used to maintain the garage. The city will not assume any additional responsibilities or liabilities as it relates to the garage. The operation of the garage will not appear any different than it 10