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South Bend Redevelopment Commission <br /> Regular Meeting—November 29, 2012 <br /> 6. NEW BUSINESS <br /> A. Housing <br /> 1) Subordination Agreement of mortgage with Michael E. Malinowski to Indiana <br /> University Credit Union. <br /> Mr. Inks noted that this South Bend Home Improvement Program (SBHIP) loan is being <br /> refinanced for a lower interest rate and lower monthly payments. There is no equity being <br /> taken out. As the refinancing proceeds, without subordination, we would end up in first <br /> position. We are being asked to continue our subordination to the primary lender. <br /> Mr. Varner asked if this was a loan we never intended to recover. Mrs. Trowbridge <br /> responded that we are currently in second position to this first mortgage. Mr. Malinowski is <br /> making payments and has paid off a little more than half of what the original loan was. It was <br /> a 50% grant, 50% loan. <br /> Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the <br /> Commission approved the Subordination Agreement of mortgage with Michael E. <br /> Malinowski to Indiana University Credit Union. <br /> B. South Bend Central Development Area <br /> 1) Amendment to Lease with GMS Realty, Inc. for 333 W. Western Avenue (VA clinic <br /> property) <br /> Mr. Schalliol noted that this is an Amendment to Lease between Ambulatory Care solutions <br /> and the City of South Bend Redevelopment Commission for the VA clinic property at 333 <br /> W. Western Avenue. The original lease provided for payment of a base rent of$4,000, <br /> based upon an area of the leased premises being 16,000 sq. ft. The actual square footage <br /> being used by ACS within the leased premises is 17,340 sq. ft. for a base rent of$4,335. <br /> This higher amount has been paid by ACS from the beginning of the contract but the lease <br /> needs to be amended to reflect this modified amount. <br /> Upon a motion by Mr. Varner, seconded by Mr. Alford and unanimously carried, the <br /> Commission approved the Amendment to Lease with GMS Realty, Inc. for 333 W. Western <br /> Avenue (VA Clinic Property) <br /> 2) Contract for Services with Housing Authority of South Bend for 701 E. South Street, <br /> Apt A <br /> Mr. Schalliol noted that the property at 701 E. South Street was formerly owned by the <br /> Housing Development Corporation (HDC) of South Bend and was recently transferred to the <br /> Commission as part of the disposition of several properties located near the intersection of <br /> South Street and Lincoln Way East. The tenant presently living in 701 E. South Street <br /> Apartment A has been living in the property for a number of years and would likely remain a <br /> 6 <br />