Approving an Amendment - South Bend Central Development Area Dev Plan

Home Browse Search

Atrium Improvements. The Hotel Improvements Escrow funds will not be available to Host until Host has invested $2,800,000 of its own funds in the Hotel Improvements. The 1st Source Improvements Escrow funds will not be available to 1st Source until 1st Source has invested $3,450,000 of its own funds in the 1st Source Improvements. (c) At the time of the closing of the purchase of the Garage (the "Garage Closing") and as a condition to the obligations of the Parties, the existing Operation; Maintenance and Easement Agreement between 1st Source (f/k/a FBT Bancorp, Inc.) and Host (as successor to Rahn Properties II) dated October 22, 1979, as amended (the "Operation Agreement"), and that certain Common Facilities Management Agreement by and among Host (as successor to Rahn Properties II), 1st Source (f/k/a FBT Bancorp, Inc.) and Marriott International, Inc. (f/k/a Marriott Corporation) ("Marriott"), dated November 1, 1981, as amended (the "Common Facilities Agreement") shall each be amended to (i) include the Commission as a party to such agreements, and (ii) to provide an acknowledgement of the assignment of 1st Source's interest in such agreements to First Bank Center Limited Partnership, a Minnesota limited partnership (the "Office Building Owner''). In addition, as a condition to the obligations of the Parties, the Operation.Agreement will be amended to provide that (i) the Operation Agreement shall terminate on April 30, 2070; and (ii) the Commission shall convey, subject to any proceedings required by law, a seventy percent (70%) interest in the Garage to Host and a thirty percent (30%) interest in the Garage to the Office Building Owner no later than the time of the termination of the Operation Agreement (April 30, 2070). Other than such amendments, the Operation Agreement and the Common Facilities Agreement shall remain in full force and effect, and Host and the Office Building Owner will continue to retain all income and assume all maintenance and responsibilities in connection with the operation of the Garage, as well as the other Public Improvements. (d) The Commission shall grant an easement providing to Host and 1st Source or the Office Building Owner, as applicable, or their assignees all rights, privileges and easements for the use and full enjoyment of the Garage. (e) The City agrees that at the time of the Garage Closing, the City, 1st Source and Host shall terminate the Conveyance Agreements and all payments, rights and responsibilities thereunder. (f) The City and the Commission further agree to cooperate and act in good faith with 1st Source and Host in completing any definitive agreements contemplated hereunder on terms typically found in agreements of the kind contemplated by this Agreement, and any actions that are necessary to complete the transactions contemplated by this Agreement. (g) The City agrees that, prior to December 31, 2017 and so long as Host is not in breach of this Agreement as described in Section 3(e), it will not .provide any funding or other incentives to any other hotel in the downtown or Notre Dame area of the City in a manner that would provide an unfair market advantage to such hotel or in a greater amount proportionally than those incentives provided to Host under this -3-