11-30-81 Human Resources & Economic Development

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project. City wanted time for legal staff review. October 5, the meeting was attended by Chuck Lahey, Dave Vance, Bob Raker, Pat McMahon, Rich Hill, Kevin Horton, for the City to scrap the $50 ,000.00 offer and does not like the legal mechanism. McMahon says we must get this project dissolved, also no legally binding contracts have been signed, so we have failed to comply with the original agreement. McMahon again informed that we could not sign legally binding sales agreements for the building which we did not have. Legals must be drawn up for size of condo required. October 8, Vance meets with Horton and McMahon for additional time and $100 ,000.00. October 21, Vance meets with McMahon, and McMahon says that two other developers are waiting to negotiate the building. October 27 Lahey meets with Horton and Horton informs them of funding and asks them for funding and asks for more time to finance long term funds. Okay given by McMahon. Warner Mortgage had received project and they had come back to us with a proposal on payment schedules, and were very interested in the project. They had come back to us with a proposal on rate, payment schedule and they were very interested in the project. October 29, Bob Lackey from TRISCO Systems Inc. , Lima, Ohio called Kevin Horton and Kevin Horton tells Lackey that financing failed and that all negotiations are terminated. Apparently somewhere here he said he had a contract signed with TRISCO signed to begin the exterior work. October 30, Lahey and Raker meet in Niles, Michigan with Pacesetter Bank to set them up with Baird & Warner out of Chicago. The same day, Channel 28 held a Press Release and stated that all developers on Odd Fellows Building have failed and the building will probably be torn down. The president of TRISCO was in town and heard that release. November 2, Horton tells Lahey that no call has been made yet and has no knowledge of press release. Bob Plackey informs me (Raker) of a conversation with Kevin Horton on the 29th. Apparently at that time Plackey was told that the project had failed and the building was down and that was his first impression that the building had fallen through. Raker calles Mike Lynch at Baird & Warner mortgage in Chicago and said that we have a political football here and his company did not want to be involved until it was straightened out. Plackey informs me of a conversation that Kevin Horton and also somewhere between July and August numerous meetings were held by Redevelopment. Redevelopment tells us $200,000.00 was not available to them. This was made in athe presence of Mr. Raker 's attorneys. I was somewhat informed of Mr. Raker 's troubles this summer so some of this can be taken with a grain of salt. We are not involved with administrative guidelines but the only thing that aroused my curiosity was the fact that the $200,000.00 from the Community Development program with a low interest loan was not available to them. They referred to it as a federal grant and that it had expired. Mr. McMahon: The $200,000 was presented to them the same as it was to everyone else. Some chose to utilize it and some chose not to utilize it, and we informed them that the use of the $200,000 (through a meeting with Mr. Horton and Mr. Lahey) and Mr. Raker stated that the use of the $200,000 to the extent that you wanted to utilize that fund and the manner that you wanted to repay it was one of the factors we used to weight the proposals that were evaluated. Quite frankly, some of the proposals that we saw chose not to utilize the $200,000 because they didn't care for the connection with the City that goes along with it and the possible tie with Historical Preservation or any type of historical intervention. We indicated to them that it was something that would be one of the points that would need review. Mr. Horton: The point that was made was that they really didn' t need the $200,000 anyway. If you look at the pro forma they