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• U N <br /> tF/ � % v; Department of <br /> rgy' ; Community Investment <br /> Memorandum <br /> Thursday, January 17, 2013 <br /> TO: Redevelopment Commission /fig <br /> FROM: David Relos, Economic Development Plannerfl nl " <br /> SUBJECT: Hotel La Salle - Return of Mavcon deposit t� <br /> On June 14, 2011, the Commission approved a Commercial Purchase Agreement <br /> (Agreement) with Mavcon Properties, LLC, from Kalamazoo, Michigan. This Agreement <br /> gave Mavcon two 180 day inspection periods to determine the feasibility of rehabilitating <br /> the Hotel in to approximately 60 market rate apartments. <br /> The Agreement called for an initial deposit of $2,000 at the time of signing, with another <br /> $2,000 deposit if a second 180 day inspection period was requested, which it was. On <br /> deposit is a total of$4,000. <br /> On July 12, 2012, the Commission approved a 60 day extension of the Agreement, to <br /> allow more time for both parties to analyze the needs of the other. This extension <br /> required no additional deposit. <br /> According to the Agreement, deposits made were to be kept if Mavcon gave notice it <br /> would not proceed after the first inspection period. Because this has been an ongoing <br /> effort by both parties to reach a solution, Mavcon did not give notice, though it has been <br /> determined we cannot accommodate their financial needs. <br /> Considering the effort put forth by Mavcon this past year and a half, and in hopes of <br /> maintaining a future working relationship with them, staff requests approval to return <br /> their $4,000 deposit. <br /> There continues to be interest in the rehabilitation of the Hotel, and it is hoped this year <br /> marks the beginning of a concrete plan that will see the Hotel become an anchor to the <br /> downtown area. <br /> 227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 I P: 574-235-9371 I FAX: 574-235-9021 I SOUTHBENDIN.GOV <br />