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South Bend Redevelopment Commission <br />Regular Meeting - January 19, 1996 <br />6. NEW BUSINESS (Cont.) <br />a. continued... <br />the acceptance of this proposal. Evidence of satisfactory financing must be provided to <br />the Commission prior to the actual transfer of ownership of the property. <br />Joint Venture <br />The proposal has been submitted by a corporation known as The Management <br />Consortium, Inc. (an Illinois corporation) or its nominee. The proposal states that <br />the final ownership of the project would be a joint venture (yet to be created) <br />between the key executives of the Management Consortium, Inc. and Venterra <br />and /or its key executives. The proposal also states that the yet to be created joint <br />venture would expand to include other equity partners. <br />Recommendation: The Developer should create the joint venture prior to the execution of <br />the Contract for Sale of Land. However, if the joint venture is not created by that time, <br />then the Contract for Sale of Land would be exclusively between The Management <br />Consortium, Inc. and the Commission. The Contract would require the Commission's <br />approval of any nomination or assignment of the Contract to any entity other than The <br />Management Consortium, Inc., including any assignment to the yet to be formed joint <br />venture described in the proposal. If at anytime throughout the period of the Contract, <br />until the Certificate of Completion is approved by the Commission, all changes of <br />ownership of the project, including the addition of equity partners must be approved by <br />the Commission. All financial information requested of Applicants in the Proposal forms <br />must be included with a request to change the ownership of the project. <br />Other Public Incentives <br />A reference in the proposal states "The only additional public development <br />incentives would be any that might be required by a potential lender. " <br />Recommendation: Acceptance of the Developer's proposal does not bind the Commission <br />or the City to any obligation to provide "additional public development incentives," <br />beyond those specifically mentioned in this report. <br />Licensing Agreement <br />The proposals states that the proposed Comfort Suites would be known as the Inn <br />at Blackthorn. <br />C9 <br />