Authorizing the Mayor to expend funds necessary for construction costs for the Public Portions of a Multi-use project in the block bounded by Colfax, Michigan, Washington and St. Joseph Streets

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OFFICE OF THE MAYOR CITY of SOUTH BEND PETER J. NEMETH, Mayor COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 July 5, 1979 Common Council County -City Building South Bend, Indiana 46601 Dear Members of the Council: AREA 219 284 - 9261 The attached resolution requests your authority to expend sums for certain construction phases of the "Hole" project, to -wit: Cost of excavation and footings The cost for these items, pursuant to the low bids received by the Board of Public Works, is in the sum of $576,250. In addition, the city will be responsible for construction manage- ment fees to Sollitt Construction Company and other related costs in the approximate sum of $200,000. As you will note, the resolution extends this authority only until October 1, 1979. It is expected that the Economic Development Bonds for the hotel will be sold shortly after October lst, at which time, the UDAG grant would come to the city. In the interim period, HUD has agreed to allow us to draw monies from the UDAG grant for the purpose of construction at the risk of the city. This means that, in the event the project for any reason does not proceed, the city may be liable to repay the UDAG monies to HUD. Upon your approval of this resolution, as well as the Economic Development Bond matter which will be coming before you on Monday, July 9, 1979, the project will commence construc- tion at 8:00 a.m., on July 10, 1979. Upon the request of First Bank & Trust Company and representatives of RAHN Properties, the Marriott Hotel and Aetna Insurance Company, a formal groundbreaking will not take place until sometime in October. Your favorable consideration of this resolution will be appreciated. Very rul yours, PJN /bjb Peter J. Nemeth Attachment