No. 2585 transferring property to the board of public works for the purpose of transferring the property to a non-profit entity

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Property. Prior to the conveyance of the Property, the Commission shall, at their own expense, Y conduct a title search and also obtain and deliver to SJRMC a commitment for an owner's policy of title insurance in which the title insurer shall agree to insure the Property for the full amount of the rehabilitation costs, or $500,000, whichever is greater, in the name of the Commission. SJRMC shall reimburse the Commission for any of its costs in obtaining title insurance for the Property. 2. A professional architect will assess the renovation needs of the Property, draft plans and cost estimates for the renovation. The renovation plans and cost estimates will be presented by the architect to the Commission for approval. Once approved, the architect, under contract with the Commission, will work with the City of South Bend Board of Public Works, through interagency agreement with the Commission, to refine the bid specifications, publicly advertise and bid the Project, and oversee construction activity. The source of funding for the project is the Airport Economic Development Area Tax Increment Financing (TIF) fund. The approved total project budget is Five Hundred Thousand Dollars ($500,000), subject to appropriation by the Commission. Project costs in excess of this amount, inclusive of professional consulting fees, construction bids, change orders and holding costs, may not be expended without approval by the Commission. A preliminary outline of the scope of work to be contracted through public bid is attached hereto as Exhibit A. Completion of the renovation and reconveyance of property is anticipated to be on or before December 31St, 2008, allowing 30 days for moving equipment and furnishings into the facility for an opening date of January 31St, 2009,. 3. The Property will be owned, operated, and maintained by the Commission during the renovation. All expenses relating to the ownership and operation of the Property, including utility charges, shall be apportioned such that SJRMC shall be deemed to have been obligated for all expenses relating to the period prior to the date of the deed and the Commission shall be obligated for all expenses relating to the period on or after the date of the deed until subsequently conveyed as provided herein. 4. A legal 501(c)(3) entity to be named "Community Health Partners of South Bend" will be established by SJRMC and Memorial as equal participants in its formation and operation. 5. Upon completion of the building renovations by the Commission and formation of the legal 501(c)(3) entity, the Commission will convey the Property to Community Health Partners of South Bend. If the building renovations are completed before such entity is formed, the Commission will convey the Property to SJRMC to hold until formation of the entity. The Property also shall be returned to SJRMC should the entity not be formed, dissolve, or cease operating for any reason. In this instance, SJRMC will pay to the Commission all documented expenses incurred for the ownership and partial or complete rehabilitation of the Property, less any expenses reimbursed by the title insurance policy, if partial rehabilitation is due to any title defects or newly discovered encumbrances. SJRMC will also pay all expenses incurred should the Bendix Family Physicians not be furnished and open for service within 12 months after the reconveyance of the Property by the Commission. Page 2 of 4 BDDB01 5262573v2