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South Bend Redevelopment Commission Regular Meeting — October 25, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (4) Development Agreement with Union Station Properties, LP for the Renaissance District project. Mr. Inks noted that in March and April 2012 the Commission entered into a series of Memoranda of Understanding with the Union Station Technology Center team to create a framework for the Renaissance District project. After months of coordination between the city, Union Station Technology Center and a variety of other players, Union Station Technology Center and the City of South Bend are seeking to advance the relationship with the approval of these three additional documents. The Development Agreement is the centralizing document for all of the actions related to the Ivy Tower elements of the Renaissance District project and helps to bring finality to the roles of each party in the transaction. The Development Agreement is a normal progression from the Memorandum of Understanding for projects of this scope and magnitude and it helps to flesh out the terms that were conceptualized in the Memorandum of Understanding (MOU). Mr. Inks outlined the main aspects of the Development Agreement. On the city's side the terms are essentially the same as in the MOU. For Union Station Technology Center (USTC) there are some new items regarding employment with local labor: • USTC has agreed to use local labor in all phases of development whenever reasonably possible. They are committing to certain actions to make that come true. • Timeline: USTC will provide the Commission with a plan of action for the project. • Nature of the improvements: The construction of improvements will be substantially the same in size and scope as specified in the plans that will be submitted. • Cost and expenses: USTC agrees to pay, or cause to be paid, all costs and expenses related to the project, exclusive of the $3.5M of improvements which the city shall pay for. • Progress reports will be submitted twice a year. • Insurance: USTC will purchase and maintain a comprehensive general liability insurance policy appropriate for the work that is being performed on the project. The Development Agreement also includes a personal guarantee of Kevin Smith that if USTC fails to make $3.5M of investment in the development in the first five years, the difference will be a personal obligation of Mr. Smith. Mr. Inks noted that the MOU had anticipated about $6,150,000 of costs related to this part of the project. There have been some additional environmental costs that have arisen, namely, consultation with Weaver Boos to clearly identify the remediation that needs to be done; some PCBs have been identified on the site; and we are also looking at the possibility of doing some cleanup of the environmental conditions to residential standards in order to facilitate residential development at the project, if that would be possible. E