The matter of the Royal Inns of America, Inc.

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i . March 29 , 1972 +tt 1' j Mr. Karl King, President Economic Development Commission of South Bend County-City Building South Bend, Indiana 46601 Dear Mr. King: As you may know, Royal Inns of America is planning to build a hotel in downtown South Bend in the very near future . Our plans call for a 150 room Royal Inn with a restaurant and cocktail lounge. In addition, our plans call for a swimming pool , a therapy pool , two sauna baths, and an exercise room. The project cost is estimated to be approximately four to four and one-half million dollars . In running the hotel , we will employ quite a number of people . Although the exact number will vary with the occupancy, we anticipate the minimum employment will be approximately 55 people. All but two or three of these people would be hired from your community. This will create a payroll of approximately $15, 000 per month. Inasmuch as they are employed locally, this would not create any additional burden on the present school system. Royal Inn ' s program utilizes a limited partnership arrangement. Under this arrangement this Corporation maintains approximately 50o and through John Nuveen & Company we sell the other 500 . These are sold in increments of 1% . A to interest in South Bend will be approximately $13 , 100 , which will mean that we will receive $655, 000 in equity from our partners . The sale of these percentage interests are treated as securities and as such are registered with the Securities and Exchange Commission . For financing we are seeking a $2 . 6 million to $2 .8 million 6% bond issue with a lease term of 20 to 25 years . All additional equity needed over and above the financing and the partners ' contribution will be furnished by Royal Inns of America , Inc .