2 Minutes12-03-10 Meeting - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Meeting –December 3, 2010 has for the last thirty years. With regard to the improvements and how the proceeds will be allocated, it is important to note that the entire $6.5M put into the project by the city will go into these improvements. There will also be private money, both from the Host side and from the st 1 Source side. One of the first things that the public will see during the construction phase, which will occur over the next three years, is improvements to the atrium area of st the 1 Source Center. A minimum of st $1.25M will be allocated to the atrium. 1 Source and Host own the atrium in the same percentage that they own the garage. So, of that $1.25M, Host will be contributing 70% st and 1 Source will be contributing 30%. $7.35M will be allocated to hotel improvements by Host, half from the garage proceeds and half from private Host funds. The bank improvements, over and above the atrium, will amount to a minimum of $5.4M. Some of those improvements will be at the st 1 Source Center, others will be to properties st 1 Source owns in the City of South Bend. Some other items in the agreement are that the garage proceeds (the $6.5M) are going to st be escrowed. Neither Host nor 1 Source will have access to those funds until they have used their own funds to make their improvements. The city’s money will be “last in.” There are some special considerations in the agreement to encourage the parties to make improvements to the atrium first. This deal doesn’t do anything for anyone unless the improvements are made. As a result, there is a provision that if the improvements are not made as agreed, st both 1 Source and Host will be subject to liquidated damages in the amount of 11