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� A C-7) SpUTH g Community & Economic Development r �a . 1865 1200 County -City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 Phone 574/235 -9371 Fax 574/235 -9021 To: Redevelopment Commission From: David Relos, Economic Development Planner Subject: Lot at Jefferson & St. Joe Street Authority to declare contract default and right to cure Date: April 12, 2011 In 2008, the Redevelopment Commission entered into a Development Agreement and Contract for Sale of Land for the parking lot at the northwest corner of Jefferson and St. Joe St. These agreements were with Jeffcourt, Inc., for the redevelopment of this lot into an upscale hotel. As part of these agreements, Jeffcourt had certain obligations, which have not been met. Because these obligations have not been met, Jeffcourt is in default of the agreements. The two most noteworthy defaults are: • Property was to be closed on by December 15, 2008. • Project excavation to begin by March 15, 2009, with construction completed within 24 months and certificate of occupancy issued. To allow this property to be available for possible future development, these agreements should be formally terminated. To do so, written notice to the developer of its defaults under the agreements is required. Upon notification of default, Jeffcourt has 30 days to cure. If this project can move forward in the future, new agreements would be drafted and brought before the Commission. Staff requests your approval to have Richard Nussbaum prepare and mail the letter of default, and providing the right to cure. Following the 30 day period, a resolution to declare the contract terminated will be brought to the Commission for approval. This resolution will then be recorded. What We Do Today Makes A Difference!