Laserfiche WebLink
South Bend Redevelopment Commission <br />Regular Meeting - January 19, 1996 <br />6. NEW BUSEWSS (Cont.) <br />a. continued... <br />Additionally, after Event #9, Financing commitments, but prior to Event #11, Building <br />permit, the Developer and the Commission shall establish a time and place for the <br />closing of transfer of property from the Commission to the Developer. <br />Airport Non - compete <br />As mentioned above as Event #4, the Developer is seeking a Non - compete <br />agreement with the Airport Authority. This non - compete would bar the Airport <br />Authority from allowing a hotel to be built on its land. The agreement currently <br />being negotiated by the Developer with the Airport Authority would encompass <br />the first five years of the Inn at Blackthorn's operations, commencing on the first <br />day the hotel is open to the public. The agreement would also include rights to <br />advertise the hotel in the Airport terminal and to operate a courtesy van service <br />with direct phone lines from the terminal. <br />Recommendation: Acceptable. As stated above with regard to both the Faithful <br />Performance Guaranty and the Project Schedule sections, the failure by the Developer <br />to secure the Non - compete from the Airport Authority on or before April 30, 1996 would <br />cancel this proposal and the resulting Contract for Sale of Land and cause the full refund <br />of the performance guaranty. <br />Redevelopment Non - compete <br />The Developer is also seeking a Non - compete covenant from the Commission and <br />the City of South Bend for land controlled by them. This non - compete would <br />also extend for the first five operating years of the hotel. The proposal also <br />indicates that with respect to land privately owned, within the Airport Economic <br />Development Area, the Commission would agree to recommend to the Common <br />Council that zoning be withheld for any other hotel/motel use. <br />Recommendation: Staff recommends that the Commission establish a non - compete <br />covenant, with respect to the land it owns or may acquire, within the Airport Economic <br />Development Area, with the Developer, based on the terms and conditions of the <br />Airport's non - compete (exclusive of any terms regarding compensation paid by the <br />Developer). This represents the full extent of any commitments the Commission can and <br />will make with respect to hotel development within the Airport Economic Development <br />Area. <br />-7- <br />