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I <br /> j <br /> ISouth Bend Redevelopment Commission <br /> I Regular Meeting—September 25, 2014 <br /> 3 <br /> j <br /> 6. NEW BUSINESS (CONT.) <br /> t <br /> B. Airport Economic Development Area <br /> c <br /> 1 (7) continued... <br /> 3 <br /> Mr. Relos replied the documents also allows staff to request personal financial statements <br /> from the bidders. Mr. Downes stated they would need to be audited financial statements. <br /> He noted the City is taking the place of a surety bond company, because that review of <br /> personal financial statements is the process they would use to determine whether they would <br /> issue the surety bond. He is not opposed to the request, but adds a cautionary note to staff as <br /> they review these potential guaranties. <br /> 1 <br /> a Mr. Inks noted along with surety bonds and letter of credit, there are other financial <br /> I instruments in the marketplace besides a cashier's check which would not tie up a bidder's <br /> funds He added part of the requirement is to assure there is a real financial commitment on <br /> the part of the bidder to complete the project if awarded. He would be more inclined to <br /> I favor a personal guaranty if there was also some cash contributed at part of it—perhaps <br /> instead of 10%, maybe 1%, 2% or 3%. <br /> a <br />/ <br /> Dr. Varner asked if this personal guaranty option is only applicable to this Blackthorn Golf <br /> 1 Course project. Staff replied it is only for this project, we are not setting policy for future <br /> projects. He asked if, by reducing the required cash outlay, we are just inviting a greater <br /> number of people without sufficient financial wherewithal to "take a chance". Mr. Fielding <br /> stated we could receive more bids, but also would allow bids from those interested in <br /> developing new partnerships---without the need for getting all paperwork finalized first. He <br /> 1 noted that banks are not issuing letters of credit these days without going through the full <br /> j financial review process. That process not only costs the entities money, but it takes a long <br /> stime and we have a short 30 day window for receipt of proposals. <br /> a <br /> Mr. Relos reminded the Commission the issue is not just the amount of money required <br /> 1 under the 10% option, but also the amount of time the funds could be tied up as staff fully <br /> 1 reviews all proposals. <br /> 3 <br /> Ms. Schey asked whether we still have a great deal of interest and when is the opening date. <br />' She asked whether the current manager, Billy Casper, was one of the interested parties. Mr. <br /> Fielding stated that all inquiries are purely speculative at this time and it would not be <br /> i appropriate to publically state who has been calling but we have received several calls. He <br /> further noted the bid opening date is set for October 16, 2014. <br /> 1 <br /> 1 <br /> i Upon motion by Mr. Downes, seconded by Ms. Schey, and unanimously carried, the <br /> 1 Commission authorized use of a personal and/or corporate guaranty with a 1% deposit for <br /> 1 the Blackthorn Golf Course proposals due to the Commission by October 16, 2014. <br /> I <br /> i <br /> s <br />{ 9 <br /> 1 <br /> i <br />