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South Bend Redevelopment Commission <br />Regular Meeting — September 27, 2011 <br />6. NEW BUSINESS (CONT.) <br />C. Airport Economic Development Area <br />(2) continued... <br />is that the value of available properties has <br />declined as much as 40 %, rental rates have <br />reduced 40 %, with costs to build increasing. <br />The positive side of the equation is that there <br />appears to be light at the end of the tunnel. <br />CE Capital Group, LLC is working with two <br />prospects for the Blackthorn area. In 2008, <br />Blackthorn had a 35% vacancy in office <br />space. Today it is at 4 %. CE Capital would <br />like more time, in light of these <br />uncontrollable events, to achieve a better <br />result. CE Capital is contemplating putting <br />together a program where it will pay for the <br />architectural design work for any business <br />that wants to locate, in the Blackthorn <br />Corporate Park, up to a limit; and, for a <br />period of time, CE Capital may reduce price <br />points by 20 %. <br />Mr. Downes asked whether under the <br />existing agreement that expires August 27, <br />2012, which would require CE Capital to <br />acquire 25% of the Blackthorn Corporate <br />Park acreage, the Commission would have <br />the option to cancel the agreement. Mr. <br />Doolittle responded that CE Capital is being <br />preemptive to ask for this three year <br />extension on the initial term and, hopefully, <br />won't have to have this discussion again. <br />Upon a motion by Mr. Downes, seconded by <br />Mr. Alford and unanimously carried, the <br />Commission approved the Option Extension <br />Agreement with CE Capital for Blackthorn <br />Corporate Office Park. <br />17 <br />COMMISSION APPROVED YHE OPTION <br />EXTENSION AGREEMENT WITH CE CAPITAL FOR <br />BLACKTHORN CORPORATE OFFICE PARK. <br />