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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 />opportunities, the project opens up great <br />opportunities for development in the <br />Coveleski Park area. <br />Mr. Inks noted in summary that the total <br />outlay is $2.9 million to acquire the property. <br />Part of that acquisition is a lease that will be <br />in place with ACS and that lease will have <br />been funded with $1 million in <br />improvements to the property. The city is <br />buying properties that had an average <br />appraisal, or some agreed -to price of $1.9 <br />million, plus a lease in place and the <br />improvements which total the $2.9 million <br />for the acquisition for all the property. There <br />is another $432,000 cost which will improve <br />the site ($70,000 in exterior improvements, <br />painting, windows, parking lot, landscaping, <br />etc.). The total to be paid out over time by <br />the city then is $3,332,000. $1.7 million of <br />that is going to be paid over the next three <br />years (through 2015). The balance, <br />$1,632,000, will be paid in 2012. <br />Mr. Schalliol used a net number and the way <br />he got to that is $3,332,000 in costs to do the <br />project. In addition, rents of almost <br />$280,000 from ACS on an annual basis <br />(including the repayment of $1 million of <br />improvements) and additional rents of <br />$60,000 per year from the Gates Service <br />Center which totals $340,000 per year over <br />the five year period totaling $1.7 million in <br />revenues received deducting it from the <br />$3,332,000 which is $1,632,000 net cost <br />that's out at the end of five years. These <br />13 <br />