04-22-02 Community & Economic Development

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r Community and Economic Development Committee April 22, 2002 Page 3 generated is $110,000. He concluded his remarks by stating that the project is good for the City. Mr. McMahon noted that the petitioner would also be paying personal property taxes on top of the real estate taxes and that the personal property taxes will not be abated. Following discussion, Dr. Varner made a motion, seconded by Council Member Ujdak that Bill No. 02-36 be recommended favorably to Council. The motion passed. Council Member King then called for a presentation on Bill No. 02-37 which is a ten(10) year real property tax abatement request for the property located at 237 North Michigan Street for LaSalle Property Management Co., LLC. Mr. Beitzinger then reviewed his report dated April 15, 2002 (copy attached). He noted that the LaSalle Property Management Company is a recently formed Indiana limited liability company which has been formed to acquire and renovate the former LaSalle Hotel located on the southwest corner of Michigan and LaSalle Streets. It has entered into a contract to purchase the 105,000 square foot building from Charismatic Renewal Services. The costs of renovation will be $2,050,000 for a new roof, a fire suppression system, renovation of the elevators, and asbestos removal. In the next three (3) years an additional$3.2 million will be needed for the project. The first two floors will be converted into a restaurant with banquet and conference facilities, with the remainder of the building converted into residential units. The report concluded that the petitioner meets the qualifications for a ten (10) year real property tax abatement under § 2-80 of the South Bend Municipal Code addressing"Mixed Use Developments in the Central Business District". Mr. Joseph Grabill a member of the LaSalle Property Management Co., LLC then made the presentation. He stated that the project will incorporate the best of the"white table cloth restaurants form New York City"which focus on excellence. In response to a question from Dr. Varner, Mr. Grabill noted that a Long Island architect is involved and that restoration will begin before the end of this year. In response to a question from Council Member King, Mr. Grabill stated that the apartments would range between 1,500 to 2,000 square feet, with the rent beginning at$1,000 per month. There are currently sixty(60) parking spaces available. Following discussion, Council Member Kirsits made a motion, seconded by Dr. Varner that bill No. 02-37 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 02-39 which would authorize the Mayor to submit an application for Section 108 Loan Funds. Elizabeth Leonard, Director of the Financial and Program Management, made the presentation. She noted that the HUD funds would be used to finance the Studebaker-Oliver Redevelopment project. The proposed funding of$3,405,000 was appropriated from 2001 funds. Following discussion, Dr. Varner made a motion, seconded by Council Member Ujdak that Bill No. 02-39 be recommended favorably to Council. The motion passed. Council Member King noted that the last item on the agenda was to hear a presentation by Mike