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South Bend Redevelopment Commission <br /> Regular Meeting—September 27, 2011 <br /> 6. NEW BUSINESS (CONT.) <br /> C. Airport Economic Development Area <br /> (2) continued... <br /> is that the value of available properties has <br /> declined as much as 40%, rental rates have <br /> reduced 40%, with costs to build increasing. <br /> The positive side of the equation is that there <br /> appears to be light at the end of the tunnel. <br /> CE Capital Group, LLC is working with two <br /> prospects for the Blackthorn area. In 2008, <br /> Blackthorn had a 35% vacancy in office <br /> space. Today it is at 4%. CE Capital would <br /> like more time, in light of these <br /> uncontrollable events, to achieve a better <br /> result. CE Capital is contemplating putting <br /> together a program where it will pay for the <br /> architectural design work for any business <br /> that wants to locate, in the Blackthorn <br /> Corporate Park, up to a limit; and, for a <br /> period of time, CE Capital may reduce price <br /> points by 20%. <br /> Mr. Downes asked whether under the <br /> existing agreement that expires August 27, <br /> 2012, which would require CE Capital to <br /> acquire 25% of the Blackthorn Corporate <br /> Park acreage, the Commission would have <br /> the option to cancel the agreement. Mr. <br /> Doolittle responded that CE Capital is being <br /> preemptive to ask for this three year <br /> extension on the initial term and, hopefully, <br /> won't have to have this discussion again. <br /> Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED YHE OPTION <br /> Mr. Alford and unanimously carried, the EXTENSION AGREEMENT WITH CE CAPITAL FOR <br /> Commission approved the Option Extension BLACKTHORN CORPORATE OFFICE PARK. <br /> Agreement with CE Capital for Blackthorn <br /> Corporate Office Park. <br /> 17 <br />