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South Bend Redevelopment Commission <br />Regular Meeting - August 5, 1994 <br />6. NEW BUSINESS (Cont.) <br />n. continued... <br />The term of the Management Agreement is <br />four and one half years, terminable by either <br />party after three years. North American <br />Golf will staff and run the golf course and <br />all of its attendant facilities. They will be <br />compensated with a fixed annual payment of <br />$6,000 per month ($72,000 per year) plus an <br />incentive component, not to exceed $72,000 <br />per year, based on gross revenues generated <br />by the golf course. In 1995, if gross <br />revenues exceed $1,500,000, North <br />American Golf will receive 10% of any <br />revenues in excess of that amount. The <br />target amount increases over the life of the <br />IL agreement from $1,500,000 to $1,800,000. <br />Those target amounts are estimated to be the <br />break -even points, so there will be no <br />sharing in the revenues until the golf course <br />makes a profit. Break -even includes the <br />Authority's debt service as well as the <br />management fee for North American Golf. <br />North American Golf will prepare an annual <br />plan and budget to present to the <br />Commission for approval prior to each <br />operating season. <br />The Management Agreement with North <br />American Golf includes as attachments the <br />Operations Policies for Blackthorn Golf <br />Course and the Minimum Course <br />Maintenance Standards for Blackthorn Golf <br />Course. <br />Mr. Piasecki asked what the Commission <br />and Redevelopment Authority's relationship <br />13 <br />