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-, ,~ <br />~,:~ j~ <br />SQUTIi B' <br />Community & Economic Development `y~~'~>' <br />r _ a <br />fir- `.,9 <br />_ 7865,~y~ <br />1200 County-City Building, 227 West Jefferson, South Bend, Indiana 46601-1830 Phone 574/235-9371 Fax 574/235-9021 <br />To: <br />From: <br />Subject: <br />Date: <br />Redevelopment Commission <br />Jennifer Laurent <br />Waiver and Consent to Mortgage, KeyBank Plaza <br />March 16, 2009 <br />On October 3, 2008, the Connnission entered into a Lease Agreement with Key S.B., in fulfillment <br />of an MOU dated April 6, 2007, which in turn outlined teens of a development project pursued by <br />the Hinman Company of Kalamazoo, Michigan, the owners of the Key Bank building in the South <br />Bend Central Development Area. <br />The project was a great success, and a total of $6.175 million in new private investment is <br />represented in the renovations undertaken by the building owners and key new and existing tenants, <br />including Baker & Daniels law fine, KeyBank, and CB Richard Ellis. <br />In support of the project, the Redevelopment Commission purchased the plaza space immediately <br />west of the building along Michigan Street and funded and directed improvements to the public <br />gathering space, with the intent of leasing the property back to the Hinman Company. Our lease <br />agreement identities the Developer's responsibility to maintain and manage the property in exchange <br />for a right to lease it back fi•om the Commission for $1.00 per year for a teen of 25 years, and the <br />right to purchase the property after a term of 25 years for $1.00. <br />The lease agreement did not specifically address rights to obtain credit using the property interest <br />under a leasehold mortgage, but Key S.B. has requested the right to do so. Such a provision is often <br />standard in our agreements, as long as the Commission's property interest is duly protected. Finding <br />no objection to Key S.B.'s request. staff and legal counsel present for your consideration a Waiver <br />and Consent to Mortgage with Centier Bank that outlines terms found to be appropriate and mutually <br />beneficial for both the Commission and Key S.B. <br />I will be happy to address any questions you may have. Your approval is recommended. <br />What We Do Today Makes A Difference <br />