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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 />With regard to the improvements and how <br />the proceeds will be allocated, it is important <br />to note that the entire $6.5M put into the <br />project by the city will go into these <br />improvements. There will also be private <br />money, both from the Host side and from the <br />st <br />1 Source side. One of the first things that <br />the public will see during the construction <br />phase, which will occur over the next three <br />years, is improvements to the atrium area of <br />st <br />the 1 Source Center. A minimum of <br />st <br />$1.25M will be allocated to the atrium. 1 <br />Source and Host own the atrium in the same <br />percentage that they own the garage. So, of <br />that $1.25M, Host will be contributing 70% <br />st <br />and 1 Source will be contributing 30%. <br />$7.35M will be allocated to hotel <br />improvements by Host, half from the garage <br />proceeds and half from private Host funds. <br />The bank improvements, over and above the <br />atrium, will amount to a minimum of $5.4M. <br />Some of those improvements will be at the <br />st <br />1 Source Center, others will be to properties <br />st <br />1 Source owns in the City of South Bend. <br /> <br />Some other items in the agreement are that <br />the garage proceeds (the $6.5M) are going to <br />st <br />be escrowed. Neither Host nor 1 Source <br />will have access to those funds until they <br />have used their own funds to make their <br />improvements. The city’s money will be <br />“last in.” There are some special <br />considerations in the agreement to encourage <br />the parties to make improvements to the <br />atrium first. This deal doesn’t do anything <br />for anyone unless the improvements are <br /> 12 <br /> <br />