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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 <br />(4) continued... <br />Mr. Varner asked for an estimate of the <br />project cost for renovating the building and <br />who would pay for the improvements. Mr. <br />Schalliol responded that staff expects the <br />total project cost to be less than $100,000. <br />The city would pay for it. The city would <br />enter into a management agreement with the <br />Silver Hawks. The facility will need to be <br />self-supporting, so any revenue would be <br />used for utilities, etc., first. <br />Ms. Jones objected to the tacit approval <br />implied if the city pays for the design work. <br />She indicated she would rather see the Silver <br />Hawks pay for design, and then staff work <br />out a long tei•~n lease agreement that would <br />take those costs into consideration. Mr. <br />Schalliol responded that staff and the Silver <br />Hawks have discussed an arrangement like <br />that, but construction of such a facility was <br />part of the HOK planning, at a cost of <br />millions of dollars. This solution seemed a <br />minor expense in relation to the potential cost <br />of a new facility. <br />Ms. Jones said that she was not opposed to <br />the city paying for broad design for an area, <br />but thinks it is a bad precedent to set that we <br />would pay for the design of an individual <br />building intended for another's use. Mr. <br />Schalliol responded that the city will retain <br />ownership of the building. He thought that <br />would keep it from setting the kind of <br />precedent she was referring to. <br />Mr. Downes announced that he will not vote <br />7 <br />