No. 2394 approving a Development Agreement with Douglas Road Retail Partners L.P., Douglas Road Partners L.P. and the City of South Bend, Indiana and other related matters

Home Browse Search

t with Section II(G), which deposit shall be made upon the later of: (i) ten (10) business days from the delivery of the notice of the deficiency or (ii) the date on which the debt service payment is due under Section II(C) hereof. E. Investment Threshold. The Developer hereby represents and commits to constructing or in otherwise allowing third parties to accomplish additional commercial developments in the Maximum Allocation Area amounting to at least Three Million Three Hundred Thousand and 00/100 Dollars ($3,300,000.00) worth of additional investment or in otherwise allowing to accomplish (the "Proposed Development"). The Developer shall achieve the Investment Threshold upon the earlier of the following: (i) the date on which the Developer completed the Proposed Development resulting in the additional investment if such date is prior to December 31, 2011 or if third-parties together with Developer construct commercial developments in the Maximum Allocation Area (if expanded to include the Area) by December 31, 2011, (ii) the date one year after the assessment date on which the completed additional investment for the Proposed Development is assessed or (iii) the date on which the property is assessed or if such date is after December 31, 2011 then one year after the assessment date on which the total assessed value of the Area eligible to be captured for tax incremental purposes equals or exceeds $7,650,000. (For example, if the Developer completes projects resulting in $3,300,000 in additional investment in commercial real property in the Area as of December 1, 2011, the Investment Threshold would be met on December 1, 2011. If the Developer completes projects resulting in $3,300,000 in additional investment in commercial real property in the Area as of April 1, 2012, the Investment Threshold would be met on March 1, 2014 because such projects would be assessed as of March 1, 2013.) The parties acknowledge that the Area is currently comprised of a few parcels, and that the parcels owned by DRP and the Developer are the only ones projected to generate TIF Revenues sufficient to cover the Bonds and the City Obligation. DRP hereby represents that it will not sell or dispose of the Memorial Building to a nonprofit entity allowing said property to become exempt from property taxation until the Bonds and the City Obligation have been satisfied. The parties further acknowledge that investment in the Area that results in improvements that are ineligible to be captured for tax increment financing purposes shall not be considered when determining whether the Investment Threshold has been met. For instance, if the Developer constructs a residential structure or constructs and disposes of a commercial structure for the use and ownership of a nonprofit or governmental entity, such improvements would not count toward the Investment Threshold. • 7