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The challenge with brownfield or greyfield redevelopment is that there are many more impediments to site development than development on a greenfield site. By playing a role in obstacle removal and burden sharing, brownfield and greyfield redevelopment begins to balance with the costs delta of greenfield development. In Phase II of the Renaissance District project, the staff is requesting that the Redevelopment Commission perform the role of site preparation agent to help facilitate reuse of the Ivy Tower site. The proposal, and the subsequent Memorandum of Understanding for this Phase II project will contemplate the Commission doing the following two items: Obtain a Phase I & II Environmental Survey of the Ivy Tower Building, and enter into an Environmental Agreement regarding remediation of the Ivy Tower Building and property. The studies contemplate two main environmental issues on -site -- asbestos and lead based paint. Based on an estimate provided by the environmental consulting team, the projected cost of total building remediation is $2,611,189.00 with $655,754.00 for asbestos remediation and $1,955,435.00 for lead based paint abatement. As a component of the Environmental Remediation of the site, the City will enter into an Environmental Agreement ( "EA ") regarding the Ivy Tower Building. 2. Upon the closing of the Ivy Tower Building purchase by USTC, provide $3,500,000 of improvements to structurally stabilize and enhance the building to allow for its reuse. 3. Work with Union Station or its affiliate on planning the Ivy Tower Improvements in order to best adapt the Ivy Tower Building as a collaborative multi- tenant facility to revitalize the Renaissance District. The total Commission investment in to Phase II of the project is projected to be $6,150,000.00. In exchange for financial participation by the City and Redevelopment Commission in Phase II of the project, the Union Station Technology Center group or its affiliate will do the following: 1. Take all reasonable steps to close on the purchase of the Ivy Tower Building to facilitate the USTC, as well as to provide an opportunity for other businesses to expand and relocate within the Ivy Tower Building, including but not limited to, providing the Commission with a Business Plan which shows the cooperative reuse of multiple businesses within the Ivy Tower Building, as well as providing reasonable space within the Ivy Tower Building for use by the Commission and other public agencies. 2. Make no less than $1,000,000 in improvements each year in the Renaissance District for a ten (10) year period, and provide the Commission on an annual basis with proof of compliance with this Commitment. To secure a return to the Commission for its Commitment, in Section 1(a)(ii), Kevin M. Smith shall guarantee Union Station will make no less than Three Million Five Hundred Thousand and 00 /100 ($3,500,000.00) Dollars in improvements in the Renaissance District over a five (5) year period. In the event Union Station fails to make such improvements, the Commission without any prejudice to enforce the Agreement against Union Station, may only enforce this Agreement against Kevin M. Smith for any deficiency in the required amount of improvements over the five (5) year period. 4. Provide the Commission with an annual report concerning the progress of Union Station's Phase Commitments. To the extent possible, this report shall be at a regularly scheduled Commission meeting. Phase II of the Renaissance Center project is key to the success of the overall project. By having 800,000 square feet of adjacent space to the USTC which can be utilized in a multi- tenant format allowing a variety of uses, producers, and end users to meet and collaborate in one area, the opportunity for innovation, job creation and spin -off development is maximized. Furthermore, the opportunity to reutilize existing structures with targeted investment as opposed to acquiring, razing, and waiting for new development to occur, or allowing the new development to happen on our fringes in greenfiled areas, is a maximization of resources and opportunities for the City of South Bend.