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The South Bend Redevelopment Authority <br />May 21, 2008 Meeting Minutes <br />approved Resolution No. 166 approving the execution of a Note and other related <br />documents concerning refinancing of Section 108 Loan. <br />b. Authority approval requested for Parking Garage Lease with Kite Realty <br />Construction, LLC <br />Mr. Inks said he and Allison Sell have been working with Kite on the terms of the <br />Lease. Kite and the University of Notre Dame did not complete their transaction <br />until last night. Kite's attorney then sent us a new lease agreement, which we <br />reviewed this morning and still have some concerns about it. Mr. Inks said after <br />hearing Ms. Sell's report on the status of the lease the Authority could approve the <br />lease subject to further legal review, or continue the meeting a different day or <br />schedule a new meeting when the final lease is available. Mr. Inks said there is a <br />certain urgency to complete the lease so that the contractors can begin their work <br />on the project. <br />Ms. Sell said the lease is between Kite Realty Eddy Street Garage LLC, which is a <br />Kite entity, and the Authority. It gives the Authority an interest in the parking <br />garage site and the garage that will be constructed. The lease that was previously <br />approved for the bond to pay for the public improvements for the area is called the <br />sublease in this document. There will then be a third step, a lease between the <br />Redevelopment Commission and this same Kite entity or another Kite entity to <br />close the loop. What we are trying to accomplish is to relieve the Authority and <br />the Commission from any and all liability other than this lease so that the Kite <br />entity will be responsible for everything they should be. Kite seems to be in <br />complete agreement with this. We want to make sure we are protected in the <br />future, such as taxes, maintenance or violating some insurance provision or <br />whatever may arise. <br />Mr. Alvarez asked what the strength of Kite is to have the ability to cure any <br />deficiencies. Mr. Inks thought the entities are probably asset-less, so we want the <br />document to loop back to Kite rather than just one of its entities. Mr. Thomas <br />asked who the Authority's agreement is with. Mr. Inks said the Authority's <br />agreement is with Kite's entity-Kite Realty Eddy Street Garage LLC. We are <br />leasing the land from that entity. We will then lease the land with the <br />improvements on it to the Redevelopment Commission, who will then lease it to <br />the second Kite entity who will then maintain the garage. Ms. Sell said we may <br />need a separate document from Kite stating that they will be responsible for any <br />defaults that may occur with their created entities. Mr. Inks said he thought they <br />were very close on finalizing the document. <br />2 <br />H:\WPDATA\AUTHORTY\5-21-2008 REDEVELOPMENTAUTHORITYMINi1TES.DOC <br />