10-15-10 Redevelopment Commission Minutes

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South Bend Redevelopment Commission Regular Meeting –October 15, 2010 7. PROGRESS REPORTS sell the bonds. Mr. Terry Gaouette,, CPA for the development group, spoke about the financing for the project. The trend now in central cities is to diversify revenue streams. Adding additional living opportunities in the downtown also increases vitality and jobs. The Chase Tower is an icon in the community, built in the 1960s. Mr. Gaouette acknowledged the businesses that have offices in the building now. He indicated they would remain. South Bend does not have an upscale hotel right now, so the developer is anticipating remaking the hotel to an Hotel Indigo, a high end hotel. That hotel brand has done very well in emerging cities of our size. A third element of the project would be senior living. Often seniors like to be in the downtown where there is vibrant activity. Anvic is a company that has brought all these elements together, including memory and dementia care, additional day nursing services. They anticipate the hotel and senior care would create 100 jobs in the downtown. Dillingham Hill RE LLC was scheduled today to take the first step in borrowing about $31.8 million for the $43.6 million project through bonds that will be issued by the City of South Bend, St. Joseph County and the Indiana Finance Authority. The three governmental units would bear no liability should Dillingham default on the loans. They would simply be allowing the developer to finance the project with municipal bonds, which generate income tax-free interest for investors. The senior living facility, called Anvic Senior Living Center, will be a state-of-the-art community for seniors requiring a variety of services, including nursing care, memory care, programming services for the elderly, and nutritional and lifestyle services. It would occupy part of the Ramada space. The tower's exterior will see extensive remodeling. 35