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South Bend Redevelopment Commission <br />Special Meeting — January 18, 2012 <br />6. NEW BUSINESS (CONT.) <br />A. South Bend Central Development Area <br />(5) continued... <br />property would be assumed by the <br />Commission and because the Commission <br />would have clear title to the land, any of the <br />land parcels could be disposed of to facilitate <br />development in the Coveleski Park area. <br />The Commission today is being asked to set <br />an acquisition value for 13 properties owned <br />by GMS Realty, Inc. and Gates & Gates, Inc. <br />The administrative settlement for the total <br />acquisition package is $2.9 million dollars <br />which includes the transfer of three <br />additional properties the city via the Board of <br />Public Works. <br />After the acquisition of the parcels, the City <br />of South Bend will own the entirety of the <br />Gates downtown campus. The city will also <br />inherit, by lease assignment, three tenants <br />including the Gates Service Center, Gates <br />Used Car Sales, and the ACSNA Clinic. <br />The lease arrangements with the two Gates <br />tenants is still being reviewed but the terms <br />of the ACS agreement are as follows: <br />• $3.00 /SF lease with ACS for five <br />years with renewable terms <br />• Loan repayment of $1 million dollars <br />at 6% for five years <br />With the infusion of the lease payment and <br />the loan repayment, the total acquisition <br />value of the Gates property is reduced from <br />$2.9 million to $1.5 million. And with the <br />ability to capture additional revenue from <br />land sales, rent and other income <br />12 <br />