ESM 10-17-79 - Laserfiche WebLink

Home Browse Search

South Bend 4ecial edevelopment Commission Emergency Meeting - October 17, 1979 2. NEW BUM Mr. Butler continues... If a corporation at this time were entering into a lease with us, the shareholders in the corporation, the officers and the directors of the corporation would not be personally liable. The partners then are in the same position as if they were share- holder; of a corporation. This is not an unusual situation. Incidentally, the lender has also provided simila exculpatory provisions in the loan agreement, the no e, the mortgage, and so forth. Basically, their -ecourse is against the assets of the partnership, which gain would be the improvements and management operat ng agreements related thereto. Mr. Jo n McKnight: It doesn't then adversely affect the City's or Commission's interest? Mr. Butler: No. Mr. Dave Anderson: If the partners are not liable then who is? Mr. Butler: The partnership itself because we would have recourse against anything that the partnership owns. Mr. Nirtz: Any further questions or discussions? Mr. Ellison: I think it should be noted that this project has often come to several crisis points and, should the Commission elect to approve these changes in the lease, it obviously reflects that the project continues to move forward despite some problems. The staff, along with the Commission, believes the project will happen. We will see a groundbreaking, Friday. There should be a great commun ty enthusiasm at this point and not a feeling that the project is dying. For the record, it should be stated that in fact we are still optimistic that we are going to be at that groundbreaking at 11:15, Friday. ' and the -press should so note. Mr. *e Anderson: Was there any reason to believe beyond this approval we shouldn't be optimistic? Mr. E1 ison: None whatsoever, I just want to make very sure t at the press understands that.