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South Bend Redevelopment Commission <br /> Regular Meeting—July 24, 2014 <br /> 6. NEW BUSINESS <br /> A. South Bend Central Development Area <br /> (1) continued... <br /> feel the character of the project remains the same. <br /> Mr. Varner asked whether Metronet will reimburse the city for the conduit. Mr. Kain <br /> responded that we will follow the city's agreement with Metronet which he believes <br /> stipulates they will reimburse the city. Mr. Varner asked that that be confirmed. <br /> Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried,the <br /> Commission approved the Amendment to Contract for Sale of Land for Private <br /> Development with Colfax Hill Partners, LLC. <br /> B. Airport Economic Development Area <br /> (1) Equipment Lease Agreement with Nello,Inc. <br /> Mr. Fielding noted that in May staff brought forth a development agreement with the Nello <br /> Corporation to create a new facility costing approximately$57,000,000 north of the ethanol <br /> plant. The development agreement spelled out that we would continue to work on the terms <br /> of the equipment lease for the equipment the Commission would be purchasing. Those <br /> terms have been agreed upon. He noted that between the time this lease agreement was sent <br /> out in the packets and this meeting we have corrected some minor inconsistencies in the <br /> agreement. Those inconsistencies and their corrections were explained. <br /> Ms. Schey asked Mr. Ford to communicate with the surrounding neighborhood so they are <br /> comfortable with what the building will look like. She said some of her constituents were <br /> concerned about it. Mr. Ford said the site plan is before the Area Plan Commission right <br /> now and it includes a large buffer between it and the neighborhood. He promised to meet <br /> with neighbors to mitigate their concerns. <br /> Mr. Downes asked if there is much of a secondary market for this equipment. Mr. Fielding <br /> responded that the way the development agreement is structured,the Commission would <br /> recoup 80-90% of its funds just through the assessed value (AV) of the 200,000 sft building. <br /> That AV would have a seven-year payback on the first drawdown of equipment. Then, not <br /> until they build a second building would they draw down the second batch of equipment. <br /> The last batch of equipment will be based on job creation. He noted that the Commission <br /> will still be able to recoup every dollar, even if we do have to sell the equipment. The <br /> development agreement stipulates that they have to pay a very stiff penalty for every job <br /> they promised but don't create. <br /> 4 <br />