RM 01-19-96 - Laserfiche WebLink

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South Bend Redevelopment Commission CRegular Meeting - January 19, 1996 6. NEW BUSINESS (Cont.) a. continued... Tax Abatement The Developer is seeking a ten -year tax abatement for the project. The Developer feels that a tax abatement is critical to secure the financing necessary for the hotel. In order to facilitate the approval of the tax abatement, the Developer has requested that the Commission, as the current owners of the property, jointly petition the Common Council for the abatement. Recommendation: Acceptable. As stated above with regard to both the Faithful Performance Guaranty and the Project Schedule sections, the failure by the Developer to secure the tax abatement on or before April 30, 1996, would cancel this proposal and the resulting Contract for Sale of Land and cause the full refund of the performance guaranty to the Developer. Bypass Interchange The Developer has also conditioned this proposal on the acceptance by the State of Indiana's Transportation Finance Authority of a grant request made by the City of South Bend for the construction of the proposed Nimtz Parkway -US 31 Bypass interchange. If the funding is not secured and construction documents put out for bid by December 31, 1996, the Developer may, at it's option, cancel the Contract for Sale of Land, Event #6, and the performance guaranty would be refunded to the Developer. Recommendation: As mentioned previously in the section Faithful Performance Guaranty, the State of Indiana's acceptance of the grant request shall mean a commitment by the State for funds sufficient for the construction of the project. Financing The Developer is proposing to have final financing commitments in place for the proposed project by February, 1997 (or later if the project schedule is adjusted in a manner approved by the Commission). However, the proposal states that the Developer has the right to extend that deadline for an additional six months (August, 1997) if it can prove to the Commission the Developer demonstrates that it has been diligently pursuing such commitments. Recommendation: Acceptable. However, the proposal did not include some of the required financial information regarding the applicants and the proposed members of a yet to be formed joint venture. This information must be provided to staff prior to the execution of the Contract for Sale of Land. Receipt of this information is a condition of C a