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South Benj Redevelopment Commission <br />Regular M eting —July 12, 2012 <br />6. NEW LOUSINESS (CONT.) <br />A. South Bend Central Development Area <br />continued... <br />and a recommendation made. <br />Staff requests approval of this Commercial <br />Purchase Agreement Addendum. <br />Mr. Varner asked Mr. Relos if he was <br />encouraged or discouraged by the need for an <br />extension. Mr. Relos responded that he has <br />no opinion. He reported that Mavcon had <br />assumed that city's tax 'abate ments were full <br />tax abatements for the full ten -year period. <br />That is how Michigan's abatements are. <br />That is how they ran their numbers. When <br />they learned that is a phased -in tax abatement <br />over nine or ten years, the needed to calculate <br />the impact and feasibility of the project <br />again. <br />Mr. Davis asked if the city could make a <br />special exception for this abatement. Mr. <br />Inks responded that that would be a policy <br />decision. Staff has requested a proforma to <br />determine whether there is a gap that would <br />require more than the standard tax abatement <br />to make the project viable. <br />Mr. Downes asked if it was realistic for <br />Mavcon to make its decision by the end of <br />the month. Mr. Relos noted that there is the <br />tax abatement issue, bui, also, we've always <br />known that any reuse of that building would <br />require a parking structure of some kind. The <br />city can participate in the project to some <br />extent. Mr. Relos thinks Mavcon has the <br />ability to make its decision by the end of <br />July. <br />17 <br />