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South Bend Redevelopment Commission <br />Regular Meeting –December 3, 2010 <br /> <br />6. NEW BUSINESS (CONT.) <br /> <br />. South Bend Central Development Area <br /> C <br /> <br />(4) continued… <br /> <br />has pledged $6.5M toward the purchase of <br />st <br />the parking garage located at the 1 Source <br />Center. The $6.5M proceeds will be <br />allocated according to the current ownership <br />of the garage. Seventy percent of the garage <br />is owned by Host; thirty percent is owned by <br />st <br />1 Source. The sources for the $6.5M are <br />UDAG repayments and some COIT funds. <br /> <br />The consideration for the parking garage will <br />st <br />go 70% to Host and 30% to 1 Source. In <br />exchange for that, the city will receive an <br />st <br />agreement from 1 Source that it will renew <br />st <br />its lease for ten years; 1 Source will make <br />st <br />improvements to not only the 1 Source <br />Center downtown and to other areas where <br />st <br />1 Source has properties in South Bend, the <br />most important of which is the First Bank <br />Building at the northwest corner of Jefferson <br />and Main. On the Host side, Host will <br />continue to operate the hotel at an upper <br />upscale or upscale hotel, making <br />improvements to the hotel as well. <br /> <br />Also important to this transaction is that both <br />st <br />Host and 1 Source, as they do today, will <br />continue to assume and maintain the garage <br />and make any capital improvements to it that <br />are necessary. They will be entitled to <br />receive the revenues from the garage and <br />those revenues will be used to maintain the <br />garage. The city will not assume any <br />additional responsibilities or liabilities as it <br />relates to the garage. The operation of the <br />garage will not appear any different than it <br />has for the last thirty years. <br /> 11 <br /> <br />