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1200 Sout ielooment Commission County -City Building i Bend, Indiana 46601 Re: �. Keen Building (402 -404 E. South) Dearl Commission Members, 17700 Woodthrush Lane South Bend, Indiana 46635 September 7, 1987 We would like to be allowed to purchase the Keen Building for cash ($20,000) before we secure financing for the total rehabilitation and startup business costs. Through the efforts of the Redevelopment Department and Durselves we have the contigencies resolved. We have acquired the necessary zoning and purchased Lot 3 from the Board of Public Works. We have not been sucessful in securing financing that we can live with. Only one local bank has given us a financing proposal. They would require us to pay 30% down, on $170,375 and take second mortgages on both of our homes, and require liens on other properties we own or have interests in. None of the noney loaned could be used for rental units. This proposal is not only unacceptable, it is not good business and we w uld certainly fail in all of our efforts. We do not intend to imply that we have been to every local financial institution, however we have been to 3 and were rejected by 2 (one because they do n )t handle commercial loans and the second outright with no explanation) and the third, the proposal which I outlined for you. It has taken 9 weeks to g t these responses. For several reasons we need to own the building as soon as possible. From a business standpoint, we have been advised that we would be in a better position to bargainfor any financingif we owned the property outright. Further, we have sufficient personal income, investments and family monies that are available to get the rehabilitation well on its way. We have comm tted $6700 to Edward VanRyn to act as our architect. He is working on plan for us which will allow for phasing in each part of our plan and be- gin Aerating as a business before the building is completed. We do believe that we could have the building completed within the 3 years as we said we coul in our original proposal to you. to p care We n is s into The matter of winter is also most pressing. The building needs work ,eserve what has already been done. If many more months go by without it. will become more and more costly to make this a viable building. ?ed to be able to get the preliminary clean out and getting while there :ill warm weather and enough light to work. If we are not able to get the building soon, another winter will go by without heat in it.