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South Bend Redevelopment Commission <br />Regular Meeting –December 3, 2010 <br /> <br />$3.9M and UDAG will put in $2.6. At the <br />end of the process it will be $5.3M from <br />UDAG and $2.7M from COIT. The UDAG <br />fund has a major loan that is being repaid <br />over the next seven or eight years. That loan <br />would bring in an additional $3M to the <br />UDAG fund. That will be the repayment <br />source for COIT. <br /> <br />Mr. Downes asked for clarification on what <br />upscale hotel and upper upscale hotel means. <br />Mr. Nussbaum explained that in the hotel <br />industry the Marriott would be classified as <br />an upper upscale hotel, based on amenities <br />such as a restaurant, a certain level of room <br />quality, a nice lobby, fitness center, etc. An <br />upscale hotel is comparable to the Inn at <br />Saint Mary’s or Hilton Garden Inn. Certain <br />flagship brands qualify for that rating. <br /> <br />Mr. Downes asked about the performance <br />thresholds. Mr. Nussbaum responded that <br />the upper upscale level is the performance <br />threshold for Host. <br /> <br />Mr. Alford asked if a Marriott representative <br />could speak to the upscale/upper upscale <br />definitions. Mr. Nussbaum responded that <br />Marriott manages this hotel for Host under a <br />management agreement, also up for renewal <br />at the end of 2010. The city expects that <br />because of these improvements the Marriott <br />will want to remain as manager of the hotel. <br />But it should not be a surprise if Hilton <br />becomes the new manager. It would have to <br />be a certain caliber of manager. <br /> <br />Mr. Varner asked, again, if $6.5M is the <br />city’s total liability for this project. Mr. Inks <br />noted that there is another item on the agenda <br />st <br />related to the 1 Source project where we are <br />buying some of their property. That is not a <br /> 15 <br /> <br />