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South Bend Redevelopment Commission <br />Regular Meeting —July 12, 2012 <br />Commission approved a Commercial <br />Purchase Agreement (Agreement) with <br />Mavcon Properties, LLC, from Kalamazoo, <br />Michigan. This Agreement gave Mavcon <br />two 180 -day inspection periods to determine <br />the feasibility of rehabilitating the LaSalle <br />Hotel into approximately 60 market rate <br />apartments. <br />Mavcon, at its own expense, has studied the <br />architectural, engineering, and environmental <br />condition of the hotel, as well as a financing <br />package that may include New Market and <br />Historic Tax Credits. <br />Mavcon has spent much time and effort <br />getting construction estimates and pulling <br />together a financing package. At the <br />Commission's last meeting on June 28, an <br />update was given that a 30 -day extension was <br />needed for Mavcon to present its findings. <br />This Agreement grants a 30 -day extension to <br />July 31, 2012. During the remainder of this <br />month, Mavcon's findings will be analyzed <br />and a recommendation made. <br />Staff requests approval of this Commercial <br />Purchase Agreement Addendum. <br />Mr. Varner asked Mr. Relos if he was <br />encouraged or discouraged by the need for an <br />extension. Mr. Relos responded that he has <br />no opinion. He reported that Mavcon had <br />assumed that city's tax abatements were full <br />tax abatements for the full ten -year period. <br />That is how Michigan's abatements are. <br />That is how they ran their numbers. When <br />they learned that is a phased -in tax abatement <br />over nine or ten years, the needed to calculate <br />the impact and feasibility of the project <br />again. <br />15 <br />