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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 />