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REGULAR MEETING DECEMBER 13, 2010 <br /> <br /> <br /> <br />firefighters. Thirdly, there was also two-tenths of a percent increase in the economic <br />development income tax dollars and those dollars are not being used for this. Mayor <br />Luecke advised that his presentation as he asked for those new dollars for EDIT should <br />be saved and used for capital projects and investments in city infrastructure and are doing <br />that they are committed to putting 2.5 million dollars a year from those dollars for a long- <br />term control plan for sewers which if they would not have had those dollars would have <br />meant a larger increase on the wastewater treatment plant users so they are using those <br />dollars to write down the rate for the city’s utilities users. The question about the parking <br />garage is yes, this deal is structured so that the City will not own the parking garage for <br />ever. He stated that they really don’t want to own it long term because there are long <br />term costs and expenses that go along with that. The agreement is such that first off the <br />dollars that they are paying to acquire the garage go into the project and think that is <br />critical and important. Secondly, the bank and host will continue to operate, manage and <br />maintain the parking garage even though the city has ownership. This is similar to Eddy <br />Street Commons where they built a new parking structure, leased it to Kite Realty and <br />they are maintaining it for a period of twenty years and at the end of that time period will <br />own that structure. At the end of that time period there will probably be significant <br />dollars that will have to go into that structure, so they prefer to have Kite responsible for <br />that those investments and this is why they want Host and the bank be responsible for the <br />maintenance and costs long term well. Mayor Luecke asked for the Council’s favorable <br />recommendation and stated that these are two anchor tenants in downtown South Bend <br />and there are many other businesses that are dependent upon them being here and have <br />worked awfully hard to come to an agreement that he believes will secure their position <br />in downtown South Bend for a long time and in addition see improvements to this <br />landmark building in downtown South Bend that is really a part of the foundation of the <br />st <br />redevelopment downtown and push the vitality level to what it is today and thanked 1 <br />Source for being a great corporate citizen and for all the work that they do in this <br />community and that he is glad to be able to play in a role in helping to keep them in <br />downtown and to help them make improvements to their building as they have helped <br />other businesses as you will recall they worked with Baker & Daniels as they moved into <br />the Key Bank Building and they made renovations and invested public dollars to assist <br />with that project. Will there be other business that come to the city in the future, <br />undoubtedly, there will be, and they will make analysis as they best can, and the <br />businesses that are coming to the City to ask for dollar that they may or may not have to <br />invest in them, he can say that he can’t think of a more important project in downtown <br />st <br />South Bend to sustain and improve the 1 Source Center and keep an upper upscale hotel <br />st <br />and 1 Source Bank there for the time being. <br /> <br />Councilmember Oliver Davis asked why is it necessary to have an upper upscale hotel <br />downtown. <br /> <br />Mayor Luecke stated that they believe that it is important to have a premium mark in <br />downtown South Bend as they sell the community and they are other hotels certain in <br />downtown that have a lower price point and convention goers can certainly take <br />advantage of as well as other visitors to the community. The Marriott also works with the <br />convention center for price points for conventions so that we can have a good tool to <br />attract conventions to the community. He stated that as they project an image they think <br />that the Marriott has a better mark than for example the “Easy 8” hotel, which they don’t <br />think would set the standard that they would want to have in downtown or in connection <br />with Century Center. So that is why they believe it was very important to have an upper <br />st <br />upscale hotel next to the Century Center as well as for 1 Source, because they are <br />making an additional commitment to this community on their long term commitment to <br />this community and they want a neighbor that is an appropriate neighbor for them so, it <br />was important to all of them that we secured a mark that would represent the community <br />well and be an asset to downtown. <br /> <br />Councilmember Henry Davis asked what does South Bend have to gain out of this. He <br />stated that to him South Bend doesn’t gain anything it’s a maintain not a gain. He also <br />stated that he spoke with Mr. Murphy are trying to fill some of the vacant store fronts in <br />st <br />downtown South Bend and was told that 1 Source has some programs to help with small <br />businesses and he understands in this economy that it is hard to loan money in this <br /> 16 <br /> <br />