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SOUTH END REDEVELOPMENT COMMISSION SPECIA MEETING: July 10, 1975 Page 17. are open to the Commission and to interested investors, that show an average occupancy in excess of 85% in communities the size of or smaller than South Bend. So, in terms of this, it is a desirable investment in point of view of Midway - -it definitely is. In terms of the Hoffman House Restaurant, Mr. Hoffman advised this group, he wouldn't be interested in coming to South Bend if he wasn't con- fident he could do over a $1 =1/2 Million the first year. Mr. Schrager added, "The question involved though is what is best for downtown South Bend. Do we need another motel here? It is not whether or not you people can have 85% and we can have three or four more empty motels. We have a downtown that has continually gone down hill. The Redevelopment has come in and has purchased properties and torn them drown. I don't know - -T am not an expert about motels - -but we certainly want something that is going to come in and add to the downtown. Not if you people are 85% filled and we have two or three other motels that are going to be closed. That's not going to aid us any. We want something that is going to help fill this place up. Not fill up your place and empty two or three others. Ms. Derbeck said she hope's she is not out of line, but "I think it should be brought out. Does either Mr. Rosenthal or the St. Joseph Bank have some interest in the Royal Inn ?" Mr. Taylor advised, "The exact interest of the St. Joseph Bank, first of all - -I think there should be some understanding that we, as a management group to St. Joseph River Bend Development Corporation, have no identity with the St. Joseph Bank, except that the St. Joseph Bank is a management consultant to that group - -No. 1. No. 2, the St. Jospeh Bank's interest in the relevance of South Bend is that Royal Inns of South Bend was constructed by $2 -1/2 Million Economic Development Bond Issue, of which the St. Joseph Bank bought $1 Million to that Bond Issue and the U.S. National Bank in San Diego bought $1-1/2 Million of that Issue. We are the Trustees for the Issue. I think - -yes, we have some interest in that, although our $1 Million is well secured. I think the City of South Bend, the Economic Development since they are economic development bonds- - certainly has some interest; as does the U.S. National." Ms. Derbeck stated, "Here we have the St. Joseph Bank having some interest in seeing that the Royal Inn goes; Mr. Rosenthal, head of the St. Joseph Bank, is also a principal in the St. Joseph River Bend Development, and I wonder if you wouldn't have a certain interest in not wanting another motel, etc? Mr. Butler advised, "Jeanne, in response to that - -I know the question is not being asked of me -- but Wayne and I have spent some time over the past week. I personally am convinced that the interest of the St. Joseph River Bend Development Group is not based upon any interest of the Royal Inn. As a group of investors they are interested, and I would imagine, as all good businessmen, they are interested primarily in the investment advantages of Block 6 -1. Secondly, I think they, as most of us in the community, including Mr. Medlock and his group, are interested in the development of the downtown area.A�t this point in time, the development of Block 6 is the issue."