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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 />made. As a result, there is a provision that if <br />the improvements are not made as agreed, <br />st <br />both 1 Source and Host will be subject to <br />liquidated damages in the amount of <br />$750,000. There’s a construction deadline of <br />December 31, 2013. Mr. Nussbaum stated <br />that the city does not anticipate having to <br />worry about that at all. We have every <br />confidence that these improvements will be <br />made; however, it is prudent to include such <br />a guarantee. In addition, if there are <br />drawdowns of city funds, there are provisions <br />that if certain operational standards are not <br />met, the city can get refunds for what it has <br />paid for the garage. The important part of <br />the clawback portion of the agreement is that <br />no credit is given until all the improvements <br />are done. So, again, the goal is making sure <br />that the money that is promised to be <br />invested in the project will be invested in the <br />project. As in any business transaction, there <br />may be the situation where it is a losing <br />proposition. So, there are certain <br />considerations given to Host, assuming that <br />there are certain threshold levels of <br />performance that are not met. Mr. Nussbaum <br />noted that this was the subject of a lot of <br />negotiation. We believe from the city side <br />that it would need to be a pretty catastrophic <br />event for Host to not meet those thresholds. <br />It has never gotten that low before in its <br />history and we think the agreement provides <br />Host the kind of protection they needed, <br />while at the same time providing the city and <br />st <br />1 Source with the kind of protection we <br />think we should have in order to make sure <br /> 13 <br /> <br />