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South Bend Redevelopment Commission <br />Regular Meeting -March 6, 2009 <br />6. NEW BUSINESS (CONT.) <br />C. South Bend Central Development Area (Cont.) <br />(1) Resolution No. 2565 authorizing <br />disposition of interest in real estate located <br />in the South Bend Central Development <br />Area. (648 Columbia St.) <br />Mr. Inks noted that Item 6.C.(1) and 6.C.(5) <br />are the same item. They are combined here <br />under the agenda title that was 6.C.(5). In <br />2001 the Redevelopment Commission <br />successfully worked with Press Ganey (the <br />operating entity) to retain and grow the <br />company at its current location. As a part of <br />the Redevelopment Agreement entered into <br />by Press Ganey and the Redevelopment <br />Commission, property at 348 Columbia was <br />to be purchased. Ganey Press Real Estate <br />purchased the building occupying the site <br />and the Redevelopment Commission <br />acquired the land on which the building was <br />located. Redevelopment, after completing <br />the statutory disposition process, entered into <br />a long term Ground Lease (49 years with two <br />25 year renewal options) with Ganey Press <br />Real Estate for the use of the land. <br />The Redevelopment Agreement and Ground <br />Lease both anticipated a future sale of the <br />property and established a framework for that <br />sale to take place. The Redevelopment <br />Commission has two options: The Ground <br />Lease can be assigned to the new owner of <br />the property; or the Redevelopment <br />Commission can include its property in the <br />sale and receive payment from the sale <br />proceeds based on a formula established in <br />the Ground Lease. The first $1,150,000, <br />after deducting expenses of the sale, goes to <br />Ganey Press Real Estate. The next $400,000 <br />15 <br />