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<br />South Bend Redevelopment Commission <br />Regular Meeting –March 20, 2009 <br /> <br />6. NEW BUSINESS (CONT.) <br /> <br />B. South Bend Central Development Area <br /> <br />(1) continued… <br /> <br />Mr. Meteiver noted that on October 3, 2008, <br />the Commission entered into a Lease <br />Agreement with Key S.B., in fulfillment of <br />an MOU dated April 6, 2007, which in turn <br />outlined terms of a development project <br />pursued by the Hinman Company of <br />Kalamazoo, Michigan, the owners of the Key <br />Bank building in the South Bend Central <br />Development Area. <br /> <br />The project was a great success, and a total <br />of $6.175 million in new private investment <br />is represented in the renovations undertaken <br />by the building owners and key new and <br />existing tenants, including Baker & Daniels <br />law firm, KeyBank, and CB Richard Ellis. <br /> <br />In support of the project, the Redevelopment <br />Commission purchased the plaza space <br />immediately west of the building along <br />Michigan Street and funded and directed <br />improvements to the public gathering space, <br />with the intent of leasing the property back to <br />the Hinman Company. Our lease agreement <br />identifies the Developer’s responsibility to <br />maintain and manage the property in <br />exchange for the right to lease it back from <br />the Commission for $1.00 per year for a term <br />of 25 years, and the right to purchase the <br />property after a term of 25 years for $1.00. <br /> <br />The lease agreement did not specifically <br />address rights to obtain credit using the <br />property interest under a leasehold mortgage, <br />but Key S.B. has requested the right to do so. <br />Such a provision is often standard in our <br /> 5 <br /> <br />