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South Bend Redevelopment Commission <br />Rescheduled Regular Meeting –February 6, 2008 <br /> <br /> <br />6. NEW BUSINESS (CONT.) <br /> <br />F. Northeast Neighborhood Development Area <br /> <br />(1) Commission approval requested for <br />Development Agreement by and among <br />the South Bend Redevelopment <br />Commission, the South Bend <br />Redevelopment Authority, the City of <br />South Bend and Kite Realty Group, LP. <br /> <br />Mr. Inks reviewed the significant terms of <br />the Development Agreement. <br /> <br />Mr. Inks pointed out Section 1.3, bond call <br />costs. The agreement between Kite and the <br />University of Notre Dame is still being <br />documented. That means that Kite does not <br />have ownership of the land, or lease interest <br />in the land, and cannot convey that to the city <br />for the city to build the roads, the right of <br />way, that’s necessary nor to convey the <br />leased site for the construction of a parking <br />garage. So, when the city actually issues the <br />bonds, the bond proceeds will be set aside <br />and not spent. There will then be a call <br />provision in the bonds that for a period of <br />time (still being defined, but probably in the <br />neighborhood of $120-145 days) in which <br />Kite will finish the documentation of their <br />agreement with the university and convey the <br />necessary property to the city. If all that goes <br />well, the call provision goes away and the <br />project proceeds. If, for some reason, that <br />does not transpire within that time frame, <br />then the city has the option of paying off all <br />of the bonds that have been issued, and Kite <br />has agreed to pay for all the costs related to <br />paying off those bonds under that call <br />provision. Kite has until May 31 to include <br />all of their arrangements with the university <br />and avoid those circumstances. <br /> 9 <br /> <br />