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South Bend Redevelopment Commission <br />Regular Meeting — Tuesday, October 22, 2013 <br />6. NEW BUSINESS (CONT.) <br />A. South Bend Central Development Area <br />(1) continued... <br />Mr. Varner asked if we have an agreement with the hotel for the parking garage <br />maintenance. Mr. Nussbaum responded that we have no maintenance responsibilities for it. <br />Eventually ownership will be passed to the hotel; there are still some obligations that they <br />must meet. Until those obligations are satisfied, the Commission will maintain the parking <br />garage. <br />Mr. Wruble asked how long the lease is for the major tenants that are currently there. Mr. <br />Nussbaum responded that the lease is 10 years from December 2010. <br />Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the <br />Commission approved Resolution No. 3180 approving and authorizing the transfer of real <br />property to Jenna Hotel Investments LLC. <br />(2) Resolution No. 3181 approving and authorizing the transfer of real property to PWA <br />South Bend LP <br />Mr. Relos noted that Resolution No. 3181 approves and authorizes the transfer of property <br />where the Atrium and Doubletree Hotel are located. <br />In 1979, the City obtained an Urban Development Action Grant (UDAG) in the amount of <br />$7,600,000. The UDAG funds, along with $21,960,000 in private funding, allowed the <br />redevelopment of this blighted site into the iconic building that occupies it today. The <br />UDAG funding required the Commission to retain ownership until project completion. <br />Also in 1979, the Commission entered into a Joint Development and Ground Lease <br />Agreement with the respective party (party) for the development of the Office Building, <br />Atrium, and Hotel. Prior to the signing of this Agreement, the property was taken through <br />the disposition process, with no bids being received. <br />In December 2010, the Commission approved a Memorandum of Understanding (MOU) <br />with the party. This MOU required improvements to the building, and upon completion of <br />the improvements and the project overall, transfer of the property to the party. Staff requests <br />approval of Resolution No. 3181 and the transfer of this property to the party. <br />Ms. Schey asked who the PWA South Bend LP entity is. Mr. Nussbaum responded that <br />PWA South Bend LP is the owner of the 1st Source building which was purchased from a <br />company in Minnesota in 2012. They are the successor in interest to the party who signed <br />the MOU. <br />0 <br />