HomeMy WebLinkAboutAuthorizing the Mayor to expend funds necessary for construction costs for the Public Portions of a Multi-use project in the block bounded by Colfax, Michigan, Washington and St. Joseph StreetsRESOLUTION
NO. 706 -79
Paused by the Common Council of the City of South Bend,
July 9 i9 79
Attest:`` - ,� -`�` �` `� City Clerk
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Presented by me to the Mayor of the City of South Bend, Indiana
Approved and signed by
July 10 19 79
Of Common Council
City Clerk
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RESOLUTION NO. 70 -'F
A RESOLUTION OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA, AUTHORIZING
THE MAYOR TO EXPEND FUNDS NECESSARY FOR
CONSTRUCTION COSTS FOR THE PUBLIC PORTIONS
OF A MULTI -USE PROJECT IN THE BLOCK
BOUNDED BY COLFAX, MICHIGAN, WASHINGTON
AND ST. JOSEPH STREETS IN DOWNTOWN SOUTH
BEND UP TO AND INCLUDING OCTOBER 1, 1979•
WHEREAS, construction is proposed of a multi -use complex con-
sisting of an office building, a first -class hotel, retail space, an
enclosed atrium interconnecting the various structures, an all - weather
garage, and an enclosed walkway to the Century Mall, all of which
improvements will be located in an area bounded by Colfax Avenue on
the North, St. Joseph Street on the East, Washington Street on the
South and Michigan Street on the West, in South Bend, Indiana; and
WHEREAS, the City of South Bend has received approval from the
United States Department of Housing and Urban Development under
Title I of the Housing and Community Development Act of 1977 for an
Urban Development Action Grant in the amount of $7,600,000.00 for
construction of the public portion of the project; and
WHEREAS, the successful completion of the project is in the
best interests of the citizens and taxpayers of the City of South
Bend, Indiana, in that the project will foster additional permanent
jobs in the community, will expand the tax base of the City, and will
promote additional economic development throughout the community; and
WHEREAS, the City of South Bend has entered into a Development
Agreement with FBT BANCORP, Inc. of South Bend, Indiana, and Marriott
Hotels of Washington, D.C., by its nominee RAHN Properties II, all
parties to the proposed construction of the multi -use project; and,
WHEREAS, the Department of Housing and Urban Development has
required the City to begin construction of the project before July 18,
1979•
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the
City of South Bend, Indiana, as follows:
SECTION I. The Mayor of the City of South Bend, through its
Board of Public Works and its Redevelopment Commission, hereby is
authorized to expend all funds necessary for construction costs for
the public portions of the project up to and including October 1,
1979.
SECTION II. This Resolution shall be in full force and effect
from and after its passage by the Common Council, and its approval by
the Mayor.
bef of the Common Counci
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PRESENTED 7-9--> y
NOT A P P ROV L=D JUL r' 1979
ADOPTED 7- 9amritQn
G;'�Y C.ZERK, SDU ?N fiE�D, (�lD.
OFFICE OF THE MAYOR
CITY of SOUTH BEND
PETER J. NEMETH, Mayor
COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601
July 5, 1979
Common Council
County -City Building
South Bend, Indiana 46601
Dear Members of the Council:
AREA 219 284 - 9261
The attached resolution requests your authority to expend
sums for certain construction phases of the "Hole" project, to -wit:
Cost of excavation and footings
The cost for these items, pursuant to the low bids received
by the Board of Public Works, is in the sum of $576,250. In
addition, the city will be responsible for construction manage-
ment fees to Sollitt Construction Company and other related
costs in the approximate sum of $200,000.
As you will note, the resolution extends this authority
only until October 1, 1979. It is expected that the Economic
Development Bonds for the hotel will be sold shortly after
October lst, at which time, the UDAG grant would come to the
city. In the interim period, HUD has agreed to allow us to
draw monies from the UDAG grant for the purpose of construction
at the risk of the city. This means that, in the event the
project for any reason does not proceed, the city may be liable
to repay the UDAG monies to HUD.
Upon your approval of this resolution, as well as the
Economic Development Bond matter which will be coming before
you on Monday, July 9, 1979, the project will commence construc-
tion at 8:00 a.m., on July 10, 1979. Upon the request of First
Bank & Trust Company and representatives of RAHN Properties,
the Marriott Hotel and Aetna Insurance Company, a formal
groundbreaking will not take place until sometime in October.
Your favorable consideration of this resolution will be
appreciated.
Very rul yours,
PJN /bjb Peter J. Nemeth
Attachment