3 Minutes 02/14/13 Meeting - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Meeting — February 14, 2013 6. NEW BUSINESS A. South Bend Central Development Area (1) continued... Ms. Jones asked Mr. Inks to please refresh the Commission's memory on the history of this group of transactions, particularly who is responsible for maintenance and whether there is anymore money changing hands. Mr. Inks responded that the original transaction was to acquire the garage for $6.5 million. All of the funds from the acquisition of that parking garage were put into three separate escrow accounts: one for 1 s` Source Bank, one for the hotel side, and one for the atrium. All of the escrow accounts had private investment numbers that had to be met. 1" Source had to invest a certain amount of money before they could draw against the escrow account. They have made that investment and that escrow account has been fully drawn down. The hotel has made all of its investment and that escrow account has been drawn down as well. Over half of the private investment on the atrium has been done and no draws have been made against that account because it is a one- time draw. Once they meet their investment the whole escrow is dispersed. The Commission has no responsibilities for the garage operation and maintenance. We have entered into a use management operation agreement with the both the owner of the hotel and the owner of the ls` Source Bank side of the project. Under the agreement, both parties are responsible for all maintenance and operations of the garage, including all capital costs. At the end of the agreement, garage ownership reverts to that group, so that there is no liability at the end of that term that would result in the city taking over ownership of a garage in need of repairs, nor will there be any other continuing liability. Mr. Varner asked if the garage remains taxable. Mr. Inks responded that it does. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 3122 authorizing and ratifying execution of documents related to the First Source Bank Building by the Director of the Department of Redevelopment on behalf of the City of South Bend, Indiana, Department of Redevelopment (Fifth Amendment to Operation, Maintenance and Easement Agreement) (2) Proposal for furniture repair or placement in the downtown. Mr. Relos noted that over the past decade the Commission, along with Downtown South Bend (DTSB), has acquired downtown furniture that has provided a cohesive look and feel to the downtown experience. During this time, DTSB has maintained the furniture by making minor repairs, painting, cleaning, removing graffiti and stickers, etc. In an effort to continue the beautification of the downtown area, the current furniture needs more costly repairs or replacement. DTSB has compiled a list of these needs with a total cost of $15,558.60. Staff requests approval of this funding request.