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South Bend Redevelopment Commission <br /> Regular Meeting—June 14, 2011 <br /> 6. NEW BUSINESS (CONT.) <br /> C. South Bend Central Development Area <br /> (2) continued... <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 /> reclaiming the building. Ms. King confirmed <br /> his understanding. Mr. Relos agreed that that <br /> should be a concern and asked counsel for <br /> 29 <br />