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 (CONT.) A. South Bend Central Development Area (1) continued... Mr. Varner asked if we have an agreement with the hotel for the parking garage maintenance. Mr. Nussbaum responded that we have no maintenance responsibilities for it. Eventually ownership will be passed to the hotel; there are still some obligations that they must meet. Until those obligations are satisfied, the Commission will maintain the parking garage. Mr. Wruble asked how long the lease is for the major tenants that are currently there. Mr. Nussbaum responded that the lease is 10 years from December 2010. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved Resolution No. 3180 approving and authorizing the transfer of real property to Jenna Hotel Investments LLC. (2) Resolution No. 3181 approving and authorizing the transfer of real property to PWA South Bend LP Mr. Relos noted that Resolution No. 3181 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. 3181 and the transfer of this property to the party. Ms. Schey asked who the PWA South Bend LP entity is. Mr. Nussbaum responded that PWA South Bend LP is the owner of the 151 Source building which was purchased from a company in Minnesota in 2012. They are the successor in interest to the party who signed the MOU.