6.B.(3) Option Contract with LaSalle Housing Partners

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E~HI131T B PROJECT NARRATIVE The planned Motel LaSalle Lofts is the adapted re-use of the historic Hotel LaSalle Building. located in Downto~~'n South Bend at 237 North Michigan Street. from a deteriorating and recant building to a mixed-use development consisting of 49 market rate apartment units and 15,000 square feet of retail and office space. hhe project developer gill be LaSalle Housing Partners. L.P., a to-be-formed Indiana limited partnership. 7~he general partner will be LaSalle Housing Corporation, Garrison L. Ilasscnllu, President. Mr. Hasscni7u is President of Garrison Development Company and has extensive experience in all t~~pes of Tax Credit developments. Ilis most recent success was the National 2007 Timmy A~~ard, given by the National Mousing & Rehabilitation Association, for the best Mired-]ncome i.argc housing development in the country. hotel LaSalle Lofts v,-ill be made possible through tax increment financing. the sale oC historic and new ma~~ket tax credits, a permanent loan. and a construction loan for gap financing. 'hhe total imtestment estimated for the development is over ~] 3.5 million. 1~he proposed development includes ten (10) one bedroom (800 square feet), thirty-five (35) two bedroom (],000 square heel). and ten (10) three bedroom (1,200 square hest) apartments. 7~here is a stcadv demand for market rate housing in do~ti~ntown South Bend: comparables in the area maintain a high occupancy level. 7~he Department of Community and Economic Development has expressed willingness to participate in funding, design and construction of a structw~ed parking facility on included propertti~ adjacent to the building, provided that the project investment supports the expenditure of Tax lncremcnt Finance (17F) funds. Parking will serve the tenants oh ljotel L.aSallc Lofts, the employees and customers of the commercial and retail space, as well as the adjacent facilities, including the prominent Morris Pcrf~orming Arts Center. 1'he conul~ercial space will be inhabited by a select few retail and otiice users. The initial conceptual plans call for ground level tenants such as: a coffeehouse (at the intersection of LaSalle and Michigan), a deli or sandwich shop (Michigan Street access), a restaurant and/or pub 4vith access from LaSalle Street. The second i7oor is amenable for 6.000 square feet of oi7ice space as sell as a balcony overlooking the entrance to the restraint "fhe development will bring thriving business as w~cll as hundreds of residents to historical Downtown South Bend. An estimated 250 jobs will be created for the construction period. In addition, approximately 50 permanent jobs will be created to support the management of the apartments and the operations of the commercial and retail space. Pre-leasing activities have begun. Anticipated construction w-ill begin in September, 2009 and complete in September, 2010. 10