RM 01-19-96 - Laserfiche WebLink

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I k South Bend Redevelopment Commission Regular Meeting - January 19, 1996 6. NEW BUSINESS (Cont.) a. continued... Project The Developers propose to construct a 150 -room hotel, for an estimated $10 million, which would be a part of the Choice Hotels International reservation network. This network is the largest hotel reservation network in the world. The hotel would contain 150 suites, of which, six would be convertible, double bay, hospitality suites and six would include in -room Jacuzzi's. The hotel would also include a 40 -seat table service restaurant and cocktail area, serving three meals and room service. A fitness center complete with indoor pool and a business center would also be included. Each suite would have separate living /working and sleeping areas with one king or two queen beds (plus queen sleeper sofa); direct dial phones; two TV's and video - player; telephone data -ports; and mini -bar with refrigerator and microwave. Recommendation: Acceptable. Faithful Performance Guaranty The required faithful performance guaranty of 10 % of the purchase price ($12,000) has been submitted by the Developers. The proposal states that the guaranty would be non - refundable except in following circumstances: 1) the St. Joseph County Airport Authority does not grant a non - compete agreement with the Developers; 2) the Common Council of the City of South Bend does not grant a ten -year tax abatement for the project; or 3) the State of Indiana fails to fund a grant to the City of South Bend for the construction of the proposed Bypass interchange. The guaranty, in the form of two checks submitted by the Developer shall be held by the Commission, uncashed, until the Contract for Sale of Land is executed. Recommendation: The three circumstances that would provide for a refund of the performance guaranty listed above are acceptable with the following modifications: the Developer is limited to a time period ending April 30, 1996 to procure the necessary approvals from the Airport Authority for the non - compete and from the City for the tax - abatement. The third circumstance, should read as follows: the State of Indiana fails to fund a grant to the City of South Bend sufficient to construct the proposed Bypass interchange. -5-