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South Bend Redevelopment Commission <br /> Special Meeting—January 18, 2012 <br /> 6. NEW BUSINESS (CONT.) <br /> A. South Bend Central Development Area <br /> (5) continued... <br /> property would be assumed by the <br /> Commission and because the Commission <br /> would have clear title to the land, any of the <br /> land parcels could be disposed of to facilitate <br /> development in the Coveleski Park area. <br /> The Commission today is being asked to set <br /> an acquisition value for 13 properties owned <br /> by GMS Realty, Inc. and Gates & Gates, Inc. <br /> The administrative settlement for the total <br /> acquisition package is $2.9 million dollars <br /> which includes the transfer of three <br /> additional properties the city via the Board of <br /> Public Works. <br /> After the acquisition of the parcels, the City <br /> of South Bend will own the entirety of the <br /> Gates downtown campus. The city will also <br /> inherit, by lease assignment, three tenants <br /> including the Gates Service Center, Gates <br /> Used Car Sales, and the ACS/VA Clinic. <br /> The lease arrangements with the two Gates <br /> tenants is still being reviewed but the terms <br /> of the ACS agreement are as follows: <br /> • $3.00/SF lease with ACS for five <br /> years with renewable terms <br /> • Loan repayment of$1 million dollars <br /> at 6% for five years <br /> With the infusion of the lease payment and <br /> the loan repayment, the total acquisition <br /> value of the Gates property is reduced from <br /> $2.9 million to $1.5 million. And with the <br /> ability to capture additional revenue from <br /> land sales, rent and other income <br /> 12 <br />