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South Bend Redevelopment Commission <br />Special Me ting - September 27, 1979 <br />2. NEW BU�INESS (continued) <br />b. Rejolution #592 approving Rahn Property II <br />mound Lease. <br />Mr. Butler: We have prepared and discussed <br />with representatives of Rahn Properties II, <br />during negotiation process, the ground lease <br />provisions. Basically, that is contained in <br />HU Form Part II, which is a form established <br />by HUD in 1969, which covers the general provisions <br />with respect to the development project. Part <br />I covers the specific lease provisions for the <br />project. We are calling for a "good faith" <br />de osit of $10,000, and we are establishing a <br />to m of 50- years commencing May 1, 1980 or <br />su h other date as the public improvements <br />(g rage, etc.) are completed to such an <br />ex ent to allow construction to begin by <br />Rahn on the hotel. In addition, there is a <br />provision for a 49 -year option to be exercised <br />by the redeveloper, which is Rahn Properties, <br />on the same terms and conditions. <br />The annual rent will be $19,348.00, and that <br />fi ure is arrived at by multiplying the $.20 per <br />sq are foot figure times the square footage, and <br />th square footage is 96,739.98 sq. ft. It is a <br />ne lease, so it is an absolute rental payment which <br />mu ;t be paid to the Department of Redevelopment <br />du ing the term and the option period. Any taxes, <br />as essments, utilities, etc. will have to be paid <br />un er the terms of the agreement, by the developer. <br />The improvements must be started on the effective <br />date of the commencement of the term (May 1, 1980, <br />or such other date) when the garage facilities are <br />completed to such an extent that they can begin <br />the hotel facility. It must be completed within <br />tw my six (26) months after the commencement date. <br />There are terms for time for submission of <br />co struction plans, time for submission of evidence <br />of equity, capital, financing, etc. The normal <br />pr vision is that they must submit evidence <br />satisfactory to the department with respect to <br />su ficient equity capital and financing commit - <br />me is to complete construction, and finance the <br />st ucture. <br />-3- <br />RESOLUTION #592 <br />APPROVED FOR RAHN <br />PROPERTY II GROUND <br />LEASE <br />