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REGULAR MEETING MAY 14, 2007 <br />SECTION III. The Common Council hereby waives such noncompliance, for the <br />purpose of permitting the Council to proceed with consideration of the Petition on its <br />merits. <br />SECTION IV. This Resolution shall be in full force and effect from and after its <br />adoption by the Common Council and approval by the Mayor. <br />s/Timothy A. Rouse <br />Member of the Common Council <br />Councilmember Ann Puzzello, Member, Community and Economic Development <br />Committee, reported that this committee held a Public Hearing on this bill this afternoon <br />and voted to send it to the full Council with a no recommendation. <br />Jamie Wade, Controller, Finance and Asset Management, CBRE as agent for The <br />Hinman Company <br />Ms. Wade advised that as agent for Key SB,LLC/The Hinman Company, request the <br />waiver of $477,000 for the building permit numbers 105995 and 106222 pulled on March <br />13, 2007 and March 26, 2007 respectively for construction of the second, fourth and fifth <br />floors of the Key Bank Building. Baker and Daniels lease at their current location <br />expired on December 31, 2006. Baker and Daniels received month-to-month tenancy <br />from the current Landlord prior to expiration of their lease. In March 2007, Baker and <br />Daniels notified the current Landlord that they would not be renewing their lease. In <br />turn, Landlord gave them a firm expiration date of January 31, 2008. Additionally, they <br />are working with a prospective tenant outside of South Bend that is currently considering <br />substantially backfilling the Baker and Daniels existing space in the First Bank Building. <br />Baker and Daniels construction is set to begin between July lgt and July 15~` and is <br />schedule to take approximately eighteen to twenty weeks with move in tentatively <br />scheduled for December 15, 2007. Due to the significant material impact, magnitude and <br />complexity of the project to accommodate Baker Daniels as a new, multi-floor tenant of <br />this building, the inherent need to shift the current tenants on floor 11, 12, 13 and 14 to <br />floor 2, 4, and 5 because of expedited due process delays and timing issues. The Hinman <br />Company has contemplated openly from commencement of the negotiations, the inherent <br />need for tax abatement to be economically successful for all parties concerned, including <br />new and existing tenants as well as the Landlord. Total project cost is 59 million dollars. <br />Councilmember Varner asked Ms. Wade to state specifically the reason for the waiver. <br />Ms. Wade stated that due to the timing issues from when the lease was signed to the start <br />of the construction in order to meet Baker and Daniels move out of their current space in <br />the 1 gc Bank Building. They have been a month to month tenant since December 31, <br />2006, there firm expiration date is January 31, 2008 and the construction is set to begin at <br />the Key Bank Tower Building between July 1 gc and July 15~` allowing eighteen to twenty <br />weeks for construction. <br />Councilmember Varner stated that the reason for the waiver was because permits were <br />pulled before the request was made for abatement. <br />Ms. Wade confirmed that was the case. <br />A Public Hearing was held on the Resolution at this time. <br />Mr. Rich Hill, Managing Partner of the South Bend Office, Baker and Daniels, (no <br />address given). <br />Mr. Hill stated that he is here tonight to ask the Council's favorable consideration of this <br />waiver. It is obvious that looking back with perfect hindsight that the building permit <br />should not have been obtained without the abatement application process being initiated. <br />23 <br />