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South Bend Redevelopment Commission <br />Regular Meeting —June 14, 2011 <br />they put in prior to construction will be its <br />primary investment in the project, <br />particularly because the NMTC take so much <br />work. They'll spend in excess of $500,000 <br />on the NMTC application, including the <br />regulatory piece, the financial modeling, and <br />the document preparation. With architectural <br />and environmental expenses as well, he <br />expects Mavcon's expenses prior to closing <br />will be in excess of $1 M. <br />Stephanie: When looking at the purchase <br />agreement, #8 and #9, the local incentives to <br />Mavcon. Will Mavcon work with our local <br />organized labor, stimulating our local <br />economy? Mr. Sielatycki responded that they <br />always use local contractors. They will use <br />South Bend contractors. <br />Mr. Varner asked Mr. Gibney what his <br />expectations were for the city's contribution <br />to the project: whether it would be only the <br />building at $5,000 or is more expected. Mr. <br />Gibney responded that there has not yet been <br />anything else requested. As they layer their <br />financing, there could be a request for a <br />parking deck (which could also be used for <br />the Morris Performing Arts Center). Mr. <br />Gibney stressed that the $5,000 sales price is <br />a small incentive for a $15M project. As a <br />comparison, when South Bend Heritage <br />Foundation bought the Robertson's Building <br />to do a $12M project, they bought it for $1. <br />South Bend Heritage used Low Income Tax <br />Credits for that project. <br />Mr. Gibney also stressed that staff has been <br />working with Mavcon for about six months. <br />Unlike all the other developers who have <br />expressed interest in the building, Mavcon <br />has kept staff informed of what they are <br />doing. Mavcon has taken the initiative to <br />30 <br />