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South Bend qedevelopment Commission Regular Mee ling August 3, 1979 FLOOR DISCUSSIONS (continued) The Chair recognized Mr. Marc Brammer of St. Joseph Bank & Trust. Mr. Bra mer: In the 90 day period, before you accept the demolition bid, are you going to require a firm financial commitment to the potential rehabilitation investor, or are you really going to be concerned about a serious proposal as to the feasibility of rehabilitating the Odd Fellows Building, and the financial commitment that generally comes with it? You know how hard it is to put together that end of the project. Mr. Ellison: It is my feeling that evidence of the firm's financial commitment is necessary to assure that the building can be done in whole, whether the scheme to do it is to be phased or whatever. Mr. Bram er: I think it is difficult in a 90 day period to give a financial commitment on the most stable development in downtown. I mean a commitment that would be stable without any questions. I am just wondering how much leeway you will give with that kind of development as I am almost sure that is what the result w uld be. If a person was seriously interested in obtaining the building then obtained approval, he would rehabilitate it then search f r a financial commitment, it would require at least 30 days to obtain that commitment. Mr. Ellison: I agree. If say, this person has a financial capacity to do it himself and be willing to guarantee it personally, I don't think the Commission can afford to be in a speculative position. It is one thing to be a serious prospect, another to be a serious prospect with the financial capability to deal with the project. Mr. Bram er: Certainly, retail stores on the Century Mall are going to come down far later than the Odd Fellows. I am wondering how much the Odd Fellows would play in hampering the overall project. If someone made a serious offer and could ve y well bring in tenants, and was able to obtain financin but was delayed until December, say in getting that kin of commitment, will the building then be sold? Mr. Ellison: There is no presumption that every detail has to be packaged, but there must be evidence that it can be packaged There might be some sort of interim kind of commit- ment letter from a lender saying "if XYZ" happens, we will finance this project at a certain rate, and then we will look at the rate, so we can then determine if the amount to be charged appears to be reasonable. In those instances we have ro ascertain whether or not the commitment appears to be substantial. If, in fact, there appears to be some- thing su stanttal, we will work with it. There is nothing in the -11- DISCUSSION FROM MR. BRAMMER CON- CERNING DISPO'- SITION OF THE ODD FELLOWS BLDG.