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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 /> Then they work backwards from there: what <br /> financial incentives are available, what <br /> federal, state and local programs are <br /> available that could help fill that gap. That's <br /> the approach they take. And, frankly, that's <br /> why the purchase price is $5,000, because the <br /> overall pro forma couldn't justify a bigger <br /> purchase price. The NMTC program will <br /> cover approximately 22-23%; the amount <br /> HTC will provide depends on what it will be <br /> spent it on. Mavcon doesn't really have a <br /> feel for that. Mavcon expects the man hours <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$1M. <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 /> 33 <br />