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South Bend Redevelopment Commission <br /> Regular Meeting—February 14, 2013 <br /> 6. NEW BUSINESS <br /> A. South Bend Central Development Area <br /> (1) continued... <br /> Ms. Jones asked Mr. Inks to please refresh the Commission's memory on the history of this <br /> group of transactions, particularly who is responsible for maintenance and whether there is <br /> any more money changing hands. Mr. Inks responded that the original transaction was to <br /> acquire the garage for $6.5 million. All of the funds from the acquisition of that parking <br /> garage were put into three separate escrow accounts: one for 1s' Source Bank, one for the <br /> hotel side, and one for the atrium. All of the escrow accounts had private investment <br /> numbers that had to be met. 1St Source had to invest a certain amount of money before they <br /> could draw against the escrow account. They have made that investment and that escrow <br /> account has been fully drawn down. The hotel has made all of its investment and that <br /> escrow account has been drawn down as well. Over half of the private investment on the <br /> atrium has been done and no draws have been made against that account because it is a one- <br /> time draw. Once they meet their investment the whole escrow is dispersed. The <br /> Commission has no responsibilities for the garage operation and maintenance. We have <br /> entered into a use management operation agreement with the both the owner of the hotel and <br /> the owner of the 1St Source Bank side of the project. Under the agreement, both parties are <br /> responsible for all maintenance and operations of the garage, including all capital costs. At <br /> the end of the agreement, garage ownership reverts to that group, so that there is no liability <br /> at the end of that term that would result in the city taking over ownership of a garage in need <br /> of repairs, nor will there be any other continuing liability. <br /> Mr. Varner asked if the garage remains taxable. Mr. Inks responded that it does. <br /> Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the <br /> Commission approved Resolution No. 3122 authorizing and ratifying execution of <br /> documents related to the First Source Bank Building by the Director of the Department of <br /> Redevelopment on behalf of the City of South Bend, Indiana, Department of Redevelopment <br /> (Fifth Amendment to Operation, Maintenance and Easement Agreement) <br /> (2) Proposal for furniture repair or placement in the downtown. <br /> Mr. Relos noted that over the past decade the Commission, along with Downtown South <br /> Bend (DTSB), has acquired downtown furniture that has provided a cohesive look and feel <br /> to the downtown experience. During this time, DTSB has maintained the furniture by <br /> making minor repairs, painting, cleaning, removing graffiti and stickers, etc. In an effort to <br /> continue the beautification of the downtown area, the current furniture needs more costly <br /> repairs or replacement. DTSB has compiled a list of these needs with a total cost of <br /> $15,558.60. Staff requests approval of this funding request. <br /> 4 <br />