12-03-2010 City, owners plan renovation for downtown landmark

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In turn, Host will invest a minimum of $8.225 million ($4.55 million of the garage proceeds plus $3.675 million of its own funds) in improvements to the hotel facility. 1st Source will invest a minimum of $5.775 million ($1.95 million of the garage proceeds plus $3.825 million of its own funds) in five of its South Bend facilities. According to the agreement, the City’s dollars, made available from reserves and an Urban Development Action Grant, will be placed in escrow and would become available only after the private sector dollars are invested. In addition, the agreement includes the refunding of City funds in the event operational standards are not met. Founded in South Bend in 1863, 1st Source Bank employs 595 people in South Bend with total wages of $32.9 million. According to Christopher J. Murphy III, chairman of 1st Source Corporation, “We are pleased that we have reached this agreement which allows us to continue to call South Bend our home. We started here and, with this agreement, we’re staying here. With clients throughout the United States and in Latin and South America, 1st Source Bank continues to expand while servicing many of our clients from our South Bend headquarters building. 1st Source has been a fixture downtown since 1863, and we hope to continue to provide our clients with straight talk and sound advice for many more generations to come.” Host Hotels & Resorts Inc. is an S&P 500 and Fortune 500 company, which is the largest lodging real-estate investment trust and one of the largest owners of luxury and upper upscale hotels. Host owns 104 properties in the United States and nine international properties, totaling nearly 62,000 rooms. The company partners with a variety of premium brands in the operation of properties in more than 50 major markets worldwide. st “On behalf of Host Hotels & Resorts, we applaud the City’s efforts in working with 1Source st Bank and Host to preserve the 1 Source/Marriott project as a vital part of downtown South Bend and in supporting Host’s efforts to maintain the hotel as a first-class facility,” said Andy Lewis, senior vice president, acquisitions and dispositions of Host Hotels & Resorts. In South Bend, the Downtown Marriott employs 100 people. The plan is similar to a 2007 renovation of the 14-story KeyBank Building and plaza, 202 S. Michigan St., in which Baker & Daniels LLP joined the building’s owners, The Hinman Co. and KeyBank, in investing between $7 million and $8 million to renovate the building, while the City upgraded the street-level plaza using resources from the downtown TIF district. “A generation ago, 1st Source and Marriott served as valuable anchors when this facility was first built as a cornerstone for downtown development,” Luecke said. “That important role is strengthened and extended today with this commitment to reinvestment in our community. This one-time inducement from our reserves exemplifies one of the ways in which the City of South Bend works with local businesses to expand investment in our community and grow the local tax base.” # # #