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South Bend Redevelopment Commission <br />Rescheduled Regular Meeting - June 25, 1999 <br />6. NEW BUSINESS (CONT.) <br />g. continued... <br />$104,580 per year in equal semi - annual <br />installments. The Addendum to the <br />Lease was amended because: (1) In the <br />first four years, the Commission will <br />make lease payments on the Studebaker <br />project. The Lease Rental payment will <br />increase in the year 2003, which <br />corresponds with the property <br />acquisition at the corner of Main and <br />Jefferson Streets. As a result of the <br />Lease Rental payment on the latter, the <br />Section 108 loan will begin to be repaid <br />starting in the year 2003; (2) The <br />second purpose for amending the Lease <br />is to amend Section 12 of the Lease, <br />which contains the Option to Purchase. <br />The Option to Purchase allows the <br />Commission to, anytime it has <br />sufficient revenues, to payoff <br />outstanding debts. The outstanding <br />debt would be the Section 108 Loan, <br />which relates to the Main and Jefferson <br />site. The Commission could exercise <br />the Option to Purchase and take title to <br />the property. If the Commission should <br />decide to enter into a development <br />agreement or sublease with a potential <br />developer regarding the Main and <br />Jefferson site, in particular, then the <br />Commission's Option to Purchase <br />could be assigned to the potential <br />developer or sublessee. In the event the <br />sublessee wants to acquire the Main and <br />Jefferson site, some time in the future, <br />the developer or sublessee could do so <br />by exercising the Option to Purchase; in <br />H: \WPDATA \C0MMSN\062599.MIN 16 <br />