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South Bend Redevelopment Commission <br />Regular Meeting — January 24, 2013 <br />5. OLD BUSINESS <br />There was no Old Business. <br />6. NEW BUSINESS <br />A. South Bend Central Development Area <br />(1) Refund of development performance bond to Mavcon Properties, LLC (LaSalle Hotel) <br />Mr. Relos noted that on June 14, 2011, the Commission approved a Commercial Purchase <br />Agreement with Mavcon Properties, LLC, from Kalamazoo, Michigan. This Agreement <br />gave Mavcon two 180 -day inspection periods to determine the feasibility of rehabilitating <br />the LaSalle Hotel into approximately 60 market rate apartments. <br />The Agreement called for a deposit of $2,000 at the time of signing, with another $2,000 <br />deposit if a second 180 -day inspection period was requested, which it was. Therefore, there <br />is on deposit a total of $4,000. <br />On July 12, 2012, the Commission approved a 60 -day extension of the Agreement, to allow <br />more time for both parties to analyze the needs of the other. This extension required no <br />additional deposit. <br />According to the Agreement, deposits made were to be forfeited if Mavcon backed out of <br />the project after the first inspection period. Both parties have worked hard to reach a <br />solution. Though Mavcon did not give notice, we mutually agree we cannot meet their <br />financial needs. Considering the effort put forth by Mavcon this past year and a half, and in <br />hopes of maintaining a future working relationship with them, staff requests approval to <br />return their $4,000 deposit. <br />There continues to be interest in the rehabilitation of the LaSalle Hotel, and it is hoped this <br />year marks the beginning of a concrete plan that will see the hotel become an anchor to the <br />downtown area. <br />Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the <br />Commission approved the refund of the development performance bond to Mavcon <br />Properties, LLC (LaSalle Hotel) <br />(2) Agreement for Services by and between the City of South Bend, Department of <br />Redevelopment, acting by and through the South Bend Redevelopment Commission <br />and Downtown South Bend, Inc. (2013) <br />Mr. Relos noted that the Commission enters into an annual agreement with Downtown <br />South Bend, Inc. (DTSB), to provide an array of services to the downtown area. Examples <br />of DTSB's services are: <br />3 <br />