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South Bend Redevelopment Commission <br /> Regular Meeting—July 24, 2014 <br /> 6. NEW BUSINESS (CONT.) <br /> A. South Bend Central Development Area <br /> (1) continued... <br /> Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the <br /> Commission approved the Equipment Lease Agreement with Nello, Inc. <br /> (2) Economic Development Memorandum of Understanding with Noble Americas South <br /> Bend Ethanol,LLC. <br /> Mr. Fielding noted that in February the staff presented the proposed development agreement <br /> terms with Noble Americas the new owner/operator of the ethanol plant. They spent the last <br /> six months doing more than their due diligence. The facility doesn't even look like the same <br /> facility. They've already exceeded the committed capital investment for the project. The <br /> Economic Development Memorandum of Understanding presented today clearly outlines <br /> Noble Americas' commitment for both capital investment and job creation as well as the <br /> Commission's commitment to purchase the corn oil extractor equipment for $2,000,000. <br /> That equipment will be leased back to Noble Americas for $100,000 per year for five years <br /> with their option to purchase the equipment from us as long as they meet the capital <br /> expenditures commitment and jobs to be created commitment for that period. <br /> Mr. Varner asked how long the payback is to the city. Mr. Fielding responded that the <br /> payback on the $2M ---essentially there is a net investment from the Commission of$1.5M. <br /> They are committing $31.8M in capital improvements. The payback on that is less than six <br /> years. <br /> Upon a motion by Ms. Schey, seconded by Mr. Downes and unanimously carried, the <br /> Commission approved the Economic Development Memorandum of Understanding with <br /> Noble Americas South Bend Ethanol, LLC. <br /> 1. <br /> (3) Equipment Lease Agreement with Noble Americas South Bend Ethanol, LLC. <br /> Upon a motion by Ms. Schey, seconded by Mr. Downes and unanimously carried, the <br /> Commission approved the Equipment Lease Agreement with Noble Americas South Bend <br /> Ethanol, LLC. <br /> (4) Agreement for Professional Services by and between the City of South Bend Indiana <br /> and Danch, Harner& Associates, Inc. (Alta Survey, Lot 7 Ignition Park) <br /> Mr. Kain noted that in March 2014 the Commission approved a development agreement <br /> with Great Lakes Capital to build a campus of high technology related buildings in Ignition <br /> Park. As part of the agreement the Commission committed to providing an Alta Survey to <br /> Great Lakes Capital. Staff requests approval of the Agreement for Professional Services <br /> with Danch Harner & Associates at a cost of$2,850 to meet that commitment. <br /> 5 <br />