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South Bend Redevelopment Commission <br />Regular Meeting —June 14, 2011 <br />have any recourse? <br />Mr. Meteiver responded that the Commission <br />has a lengthy period prior to closing (a 180 - <br />day initial period, then 90 days, and another <br />90 days). Mavcon will be, potentially, a year <br />and a half into the project by then. The <br />expense they will incur to develop the <br />financial package that has to go with this, he <br />expects, will be in excess of $100,000. They <br />will have a very significant investment in the <br />project by the time it closes. If they get to <br />that point and determine the project can't go <br />forward, then the project won't close. If the <br />financial package is ready and Mavcon is <br />ready to go forward, then the project will <br />close. The investment they will have made <br />by that time will be a strong incentive to <br />complete the project. <br />Ms. King said that she understands what Mr. <br />Meteiver said, but still feels the Hotel will be <br />totally out of the Commission's control after <br />closing. She noted that deals fall apart. <br />She'd like to make sure that Mavcon would <br />not get into the position of owning the <br />property for $5,000 and then not moving <br />forward on the project. <br />Mr. Alford said that he shared Ms. King's <br />concern about the Purchase Agreement not <br />providing the Commission recourse. If <br />Mavcon has invested a large amount of <br />money doing its due diligence, it will not be <br />willing to sell the hotel back to the <br />Commission for $5,000. They will want a lot <br />more. <br />Mr. Relos asked if he understood Ms. King's <br />concern correctly, that there needs to be a <br />timeline for project completion after closing <br />or the Commission has recourse, such as <br />26 <br />