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South Bend Redevelopment Commission <br />Emergency ' pecial Meeting October 17, 1979 <br />2. NEW BU�INESS (continued) <br />Mr. Ni tz: I might say to the Commission, Mr. Butler <br />and Mr. Ellison, and I have been in contact this week <br />while these discussions have been taking place. Mr. Butler, <br />you mi ht list what the assets of the partnership are. <br />Mr. Butler: The assets of the partnership at this point <br />are nothing. The partnership really will become effective <br />as an Economic entity tomorrow (October 18, 1979) or <br />Friday, (October 19, 1979) when the bonds are sold. <br />Bascially, the assets will be the improvements to be <br />transferred from the City to the partnership. As <br />construction proceeds on the hotel, the building <br />with t e furnishings, fixtures, and equipment will <br />constitute the partnership's major asset. Additionally, <br />the partnership is entering into management and <br />operations agreements with Marriott Hotel Corporation <br />to operate the hotel and this agreement is an asset. <br />Also, cocuments with FBT Corporation, because this is <br />an int grated development, as between FBT and RAHN <br />Properties as the developers of that block - and so <br />there are certain agreements with respect to parking usage, <br />to access easements, and so forth. So those are the <br />assets of the partnership. Additionally, the partnership, <br />as I i dicated, is going to be investing two and a half <br />millior dollars, roughly of equity money for purposes <br />of financing the construction in addition to the <br />ten million dollar loan they are receiving. <br />Mr. Ni tz: Carl, in the discussions you and I had <br />Friday didn't you indicate to me that there has been <br />some 2scussions with Rahn Properties II that they may <br />incorrate? <br />Mr. Ellison: That is correct, but at a later date. <br />Mr. Ni tz: Which would essentially put them in the <br />positi n that they are asking for now, anyway. Mr. Butler, <br />it is our recommendation we go ahead and approve these <br />changes now as negotiated, is that correct? <br />Mr. Butler: Yes, that is correct. <br />Ms. Au urn: Would you explain to me what tenant <br />obliga ions we are talking about? <br />Mr. Bu ter: We begin with, of course, the construction <br />of the improvements. They are obligated under the terms <br />of the Lease Agreements to construct the improvements, as <br />per the plans and specifications which ultimately they will <br />be pre enting to the department for review and approval. <br />They will be obligated under terms of the agreement to <br />convey the public improvements, the garage and atrium to <br />-4- <br />