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South Bend Redevelopment Commission Special Meeting - October 10, 1979 2. NEW BUSINESS (continued) b. Mr. Ellison continues... They included'an analysis of their.cost and submitted their FHA mortgage application. The essentials are that the proposed development is at the amount of 2.9 million dollars. They believe that amount is necessary to pro- vide higher amenities. Their key floor plan shows typical layouts for their one and two bedroom units. They plan to gut rehab and to replace the elevators and use the existing corridors, to the extent that they can, to build in the living spaces. They plan to build anew stair case and plan to.rehab the building from the top down. The ninth and tenth floors would have a living room area on the ninth floor and a bedroom on the tenth floor, so that there would be loft apartments in the corners of the building. They intend to ask rents that would run from $300.00 for an efficiency, $365.00 for a one bedroom, $405.00 for a one bedroom with a loft, and $450.00 for a two bedroom unit. The firm does not have a market feasibility study, but indicates their feeling that the market can successfully develop the project here. They have had previous experience with a number.of cities around the country, including Atlanta, Gary, and Detroit.. We have done a great deal of substantial rehab work for the conversion of properties from industrial or commercial use into housing. They do have an indication of a firm that will assist them in achieving the FHA financing under the GNMA Tandem program in order to arrive at the 71-A rate. Their numbers are based on an 8% financing and thus they have calculated their rents from that basis. They want to begin construction by spring of 1980 and hope to have the initial apartments on the ninth and tenth floors open by Christmas 1980. They would continue to rehab the building and allow occupancy of additional space as floors were completed. Finally, there is some consideration being given to doing something with the roof; they indicate the possibility of providing a sun deck as a recreational amenity to the tenants of the building. It is their intent to use the commercial space on the first floor to provide for uses that would accommodate the renters of the building, and would encour- age small minority entepreneurs to open business in the building as it exists. They would tuck point the south and east wall and would likely paint it in order to improve its look. They may replace some windows but the essential structure of the outside would remain as it now is. -7-