6.D.(1) Contract with South Bend Heritage

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~~ ~ (~ ~~ Staff Report ConUact Proposal for Smith Bend Heritage Foundation for lase of ~-Vest Washington TIF Prepared by: Don Inks 11118!08 Previously tlu Rcdc~clopment Conunission had entered into n contract ~~~ith South Bcnd I la~itage Foundation (SBI IF) for the use of West Washington TIF funds for a ~ aricty of projects. That contract ran from January 2006 to December 2007, and it was our attention to renc~~ it for another t~ru years. since SBHF was a~ntinuin~ ~~~o~i< in 2008 on the A~atatorium reuse renovations ~~hich started in 2007. I am not sure if the loan of this agreement ~~~ill be an Addendum to the original contract. or a completely ne~~~ contact. Accordingly I have attached a copy of the original contract 1~~r your rc~~ie~x~ ~~~hich is the tbrm 1 expect a ne~~~ contact ~~-ould lake. Changes to the contact terms in a nc~~~ contract or /lddcndum would be the tbllow~ing. The agrccnunt would be for two years. 2008 and 2009. Exhibit C (Prajcct Budget) «~uuld change so that 2008 ~a~ill show' the Natatorium at 590.000. This amount represents a 590.000 encumbrance (or Phase I from 2007, and S~00,000 for Phase II prc~iously appropriated by the Rede~ clopmcnt Commission as the Development Opportunity Reser~°e. On February 15. 2008 the Conunission appro~~a1 $-X50.000 from the De~clopment Opportunity Rescue to be used on Phase IL Since that time. hi~~her than expected bids, along ~~~ith some unforeseen costs such as an underground stora~~c tank. ha~c added about $41.000 to Phase ll costs. ~1n additional 57.000 is requested in the event any more unanticipated costs arise. The 2009 budget ~~ould be for 5370.000 for future projects to be agreed upon by the Rcdcvclopmcnt Commission and SBHF. SBHF has been acti~~ely w~orkingon dcrelopment in the West Washington area forthc past three decades. SBH ~ has an exemplary dc~~clopment record durin~~ that time on u variety of projects incVuding single family rehab, multi-family nc~~~ const~uc[ion and rehab. commercial property acquisition and demolition and other property reuse rehab such as the Natatorium. Their de~~elopment expertise allows Rede~elopmcnt to continue the progress in West Washington. and do so in an etticicnt manner by ~~~~orl<ing ~n~ith SBHF in lieu of hiring and dc~°cloping that staff capacity in house. fhc stall rccommcndation is to appro~~c the contact proposal etiecti~~c January 1, 2008.