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South Bend redevelopment Commission Special Mee ing - October 10, 1979 2. NEW BUSINESS (continued) b. c*inued...(3rd rehabilitation proposal discussed) The Chair then recognized Ms. Mara Gelbloom, representing Ame ican Development Corporation. Ms. Mara Gelbloom: American Development Corporation has spent the last several months thoroughly investigating rehab potential of the Odd Fellows Building. We propose to convert the building into Class "'A" office space. We will gut "rehab with all new mechanical, electrical, and plumbing systems. The exterior historical value of the building would be maintained in some way. The building wou d, therefore, have all the amenities of Class "A " new office space for the South Bend area and its excellent location would make it highly marketable. Because of the Department of Redevelopment's willingness to recommend ind strial revenue bond financing for the building, should it a retained, we have prepared a loan package for the bui ding, and found a brokerage firm from Rolling Meadows, Ill nois that is willing to place the bond for us. This com any has actually given us a firm commitment for financing the project, rather than what is normally called a "best effort". Therefore, financing is virtually assured on this project subject to tax bond issue. The total rehabilitation cost would be two million, two hundred and fifty five thousand, one hundred and seventy five dollars ($2,255,175.00). Figuring at -82% interest, we found it necessary for the rent stricture to be at $10.00 per square foot. We have consulted witi the commercial brokerage firm of Cook Realty, here in 3outh Bend, who will be our leasing agent, should we be cho en as developers, and have a letter from their firm as art of our packet, to show that the space can be leased at hat price by the time the building is completed. The rea on for the $1.00 bid is simply because we found that $10,00 per square foot is an absolute ceiling for rent in Sou :h Bend's market place. Therefore, as our bid, I would lik to inform you that included in our proposal is a loan pac age with a commitment from a lender, a complete break dowi of construction plans, and a letter from a commercial age t. I would briefly like to mention that American Development Cor oration does have experience. The company has grown to the fifth largest producer in multi-family housing in the cou try, and the twenty seventh largest builder in the past eig t years. We are one of the few developers in the United States who have been successful in introducing large i sca a rehab. We have over three hundred (300) units n Kan as City, and have just completed over 300 units in Chicago. Under a special historic rehab program, which we hope to do the Odd Fellows under, we can expand it into a commercial reh b market. In Springfield, Illinois, we will begin con truction on the Old St. Nicholas Hotel for leasing. in