2 Minutes 10-22-13 Meeting - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Meeting — Tuesday, October 22, 2013 7. PROGRESS REPORTS (1) Staff update on the development of Colfax and Hill project. Mr. Kain noted that it's been a few weeks since the DCI Staff brought before the Redevelopment Commission the development team of Colfax Hill Partners, LLC. to develop the Hill and Colfax lot owned by the Commissioners to a mixed use project. Over the last few weeks we've been working with a development team and a consultant who studied the drainage issues on the site because the site does go all the way to Colfax. Staff has a good idea of what will need to be accomplished to solve the drainage problem. In addition to this, it has been discovered that there are two AEP transmission poles in the alley to the west of the site. According to AEP, certain distances need to be maintained between the wires and the buildings. Staff has been working with AEP to resolve how close the building could potentially come to the alley, and we think we have a good resolution. Staff is moving forward on the project, and within the next few weeks, prior to the end of the year, we can bring to the Redevelopment Commission a Purchase Agreement which will detail the developer's commitment and the Commission's commitment towards the project. (2) Staff update on the Hotel LaSalle Mr. Fielding noted that in April 2013 Department of Community Investment acting on the behalf of the Redevelopment Commission requested proposals for the renovation of the LaSalle Hotel structure. In May 2013 DCI received proposals for four developers, with three deemed being responsive. The viable proposals are from an Israeli investor called the Engrat Group, to develop the building into dorm -style living for students, Real America a - based, affordable housing development for 60 ? ?? apartment units, and Great Lakes Capital proposed 59 apartment units, market rate. After a thorough review the Department of Community Investment is recommending to move forward with Great Lakes Capital due to their experience and renovation of with historic structures and the density that they will offer to Downtown South Bend. Part of the proposal would be 23 one - bedroom units, 36 two- bedroom units offering resident storage, a fitness center, and ground and mezzanine level commercial spaces, with price points ranging from $842 41360 a month for the apartment. Estimated total investment is $10, 848,000. Currently in negotiations and hopefully to bring back a development contract and purchase agreement at a future Redevelopment Commission meeting with public investment of $1.8 million over the next two years to assist with cost -to -cure and outside renovations. Great Lakes Capital will be responsible for assisting DCI Staff in developing bid specifications for the work. Board of Public Works will be handling all of the bidding. Great Lakes Capital will serve as the construction manager. Staff will bring back a development agreement and purchase agreement at a later meeting. Mr. Varner asked for a relative timeline. Mr. Fielding responded that staff is hoping to have the development agreement finished within the next 30 -45 days and anticipating the construction to start at the end 2013 or beginning 2014.