2 Minutes 10-22-13 Meeting - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Meeting — Tuesday, October 22, 2013 6. NEW BUSINESS A. South Bend Central Development Area (1) Resolution No. 3180 approving and authorizing the transfer of real property to Jenna Hotel Investments LLC. Mr. Relos noted that Resolution No. 3180 approves and authorizes the transfer of property where the Atrium and Doubletree Hotel are located. In 1979, the City obtained an Urban Development Action Grant (UDAG) in the amount of $7,600,000. The UDAG funds, along with $21,960,000 in private funding, allowed the redevelopment of this blighted site into the iconic building that occupies it today. The UDAG funding required the Commission to retain ownership until project completion. Also in 1979, the Commission entered into a Joint Development and Ground Lease Agreement with the respective party (party) for the development of the Office Building, Atrium, and Hotel. Prior to the signing of this Agreement, the property was taken through the disposition process, with no bids being received. In December 2010, the Commission approved a Memorandum of Understanding (MOU) with the party. This MOU required improvements to the building, and upon completion of the improvements and the project overall, transfer of the property to the party. Staff requests approval of Resolution No. 3180 and the transfer of this property to the party. Ms. Schey asked who the Jenna Hotel Investments, LLC entity is. Mr. Nussbaum responded that Jenna Hotel Investments, LLC is the owner of Doubletree Hotel. Subsequent to signing the MOU back in December 2010, Host Hotels, which operated the Marriott, sold to Jenna Investments who operates the Doubletree Hotel. They are the successor in interest to the party that signed the MOU. Ms. Schey asked if the Redevelopment Commission is transferring ownership to this company. Mr. Nussbaum responded that the land under which the improvements sit is owned by the Redevelopment Commission. As part of the MOU that was entered into in December 2010, the agreement was that when they made all of the promised improvements, the land would be signed over by Quit Claim Deed to the owners. Ms. Schey asked if the Redevelopment Commission paid $6 million for improvements for the parking garage. Mr. Nussbaum responded that the Redevelopment Commission purchased the parking garage for $6.5 million. All of the proceeds went into the improvements that took place at the hotel. There were both private funds and public funds that went into the project totaling approximately $14 million in improvements. Mr. Varner asked if the Redevelopment Commission still owns the parking garage. Mr. Nussbaum responded that we do.