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South Bend Redevelopment Commission <br />Regular Meeting — Tuesday, October 22, 2013 <br />7. PROGRESS REPORTS <br />(1) Staff update on the development of Colfax and Hill project. <br />Mr. Kam noted that it's been a few weeks since the DCI Staff brought before the Redevelopment <br />Commission the development team of Colfax Hill Partners, LLC. to develop the Hill and Colfax <br />lot owned by the Commissioners to a mixed use project. Over the last few weeks we've been <br />working with a development team and a consultant who studied the drainage issues on the site <br />because the site does go all the way to Colfax. Staff has a good idea of what will need to be <br />accomplished to solve the drainage problem. In addition to this, it has been discovered that there <br />are two AEP transmission poles in the alley to the west of the site. According to AEP, certain <br />distances need to be maintained between the wires and the buildings. Staff has been working <br />with AEP to resolve how close the building could potentially come to the alley, and we think we <br />have a good resolution. Staff is moving forward on the project, and within the next few weeks, <br />prior to the end of the year, we can bring to the Redevelopment Commission a Purchase <br />Agreement which will detail the developer's commitment and the Commission's commitment <br />towards the project. <br />(2) Staff update on the Hotel LaSalle <br />Mr. Fielding noted that in April 2013 Department of Community Investment acting on behalf of <br />the Redevelopment Commission requested proposals for the renovation of the LaSalle Hotel <br />structure. In May 2013 DCI received proposals from four developers, with one deemed to be <br />unresponsive. The viable proposals are from an Israeli investor called the Engrat Group, to <br />develop the building into dorm -style living for students, Real America, which will develop <br />affordable housing apartment units, and Great Lakes Capital which proposed 59 apartment units, <br />market rate. After a thorough review the Department of Community Investment is <br />recommending to move forward with Great Lakes Capital due to their experience and renovation <br />of with historic structures and the density that they will offer to Downtown South Bend. Part of <br />the proposal would be 23 one - bedroom units, 36 two - bedroom units offering resident storage, a <br />fitness center, and ground and mezzanine level commercial spaces, with price points ranging <br />from $842 -$1360 a month for the apartment. Estimated total investment is $10, 848,000. Staff is <br />currently in negotiations with Great Lakes Capital and hopes to bring back a development <br />contract and purchase agreement at a future Redevelopment Commission meeting with public <br />investment of $1.8 million over the next two years. Great Lakes Capital will be responsible for <br />assisting DCI Staff in developing bid specifications for the work. Board of Public Works will be <br />handling all of the bidding. Great Lakes Capital will serve as construction manager. <br />Mr. Varner asked for a relative timeline. Mr. Fielding responded that staff is hoping to have the <br />development agreement finished within the next 30 -45 days and anticipates construction to start <br />at the end 2013 or beginning 2014. <br />9 <br />