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HomeMy WebLinkAboutThe matter of the Royal Inns of America, Inc. RESOLUTION 303-72 Passed by the Common Council of the City of South Bend, Indiana, APRIL 10 19 72 Attest: - i c% City Clerk Attest: President of Common Council. Presented by me to the Mayor of the City of South Bend, Indiana APRIL 11 19 72 City Clerk Approved and signed by me APRIL 11 1972 Mayor RESOLUTION NO. 303-72 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, ST. JOSEPH COUNTY, INDIANA, IN THE MATTER OF THE ROYAL INNS OF AMERICA, INC. WHEREAS, the Royal Inns of America, Inc. has submitted its inten- tion to the Economic Development Commission of South Bend to build a facility on the approximate four acre tract located in the City of South Bend under the R-66 Urban Renewal Plan designated for this purpose, bounded by the extension of Western Avenue, East Wayne Street, East Jefferson Street and the extension of St. Joseph Street, as proposed in the Urban Renewal Plan. WHEREAS, the Royal Inns of America, Inc. , has submitted a state- ment of public service to the above Economic Development Commission of the City of South Bend and said Commission has forwarded this statement of public service with their approval and comments to the South Bend School Corporation, a copy of which is attached, and WHEREAS, the affirmative response and analysis of the South Bend School Corporation has been received as presented to the Clerk of the City of South Bend and attached, and WHEREAS, the statement of public service by Royal Inns of America, Inc. , and the Economic Development Commission of the City of South Bend have been submitted for approval and comments to the Area Plan Commission of St. Joseph County and the affirmative action and comments of the Area Plan Commiss- ion have been received by the Clerk of the City of South Bend as attached, and WHEREAS, the requirements of the application as described in the "Municipal Economic Development Act of 1965 of the State of Indiana" as amended have therefore been met to this point, including a projection of the number of jobs created, the estimated payroll created and the approximation of the cost of the land and construction, and the impact on utilities and fire and police facilities of the City of South Bend with the approvals of the school corporation and the Area Plan Commission having jurisdiction of the area in which the pro- posed facility is to be built, and WHEREAS, the plan meets the desire of the Redevelopment Commission of the City of South Bend, and WHEREAS, now the Royal Inns of America, Inc. , seeks approximately $2,400,000. to $2,800,000. from an issue of revenue bonds of the Economic Devel- opment Commission of the City of South Bend to be signed by its Mayor and by its city clerk and further desires to enter into a lease of 20 to 25 years dura- tion to be known as a net net net lease sufficient to pay the principal and interest of these bonds and obtain title at the end of the lease, and WHEREAS, by virtue of the net net net lease, the Royal Inns of America, Inc. , indicates its intention to pay all expenses of the operation, maintenance, insurance, property taxes, whatever of the facility, THEREFORE, be it resolved by the Common Council of the City of South Bend that the statement of public service on the part of the Economic Development Commission of the Area Plan Commission and the South Bend Citv School Corporation be accepted and approved, and THEREFORE, be it resolved that the South Bend City Common Council authorize the Economic Development Commission of the City of South Bend to pro- ceed to make preliminary agreements with the proposed lessee, the Royal Inns of America, Inc. , in the nature of a conditional commitment to enter into a lease with the Royal Inns of America, Inc. , and THEREFORE, be it resolved that the Economic Development Commission of the City of South Bend shall, as soon as the new lease form is properly pre- pared, submit the same to the Clerk of the City of South Bend to be prepared by a member of the Common Council as a proposed ordinance for the acceptance of same and issuance of revenue bonds to cover the amount of money needed. t Peter J. Nemeth, esiden South Bend City C mmon Council FILED IN CLERK'S OFFICE Irene Gammon u"`"dtlyi�b CITY CLERK, SOUTH BEND, IND. 1st 6 2nd READING 4.-/6 7 IAIt AX-I i6 IN ONE APR 6 1972 REF PA"FD a- i . March 29 , 1972 +tt 1' j Mr. Karl King, President Economic Development Commission of South Bend County-City Building South Bend, Indiana 46601 Dear Mr. King: As you may know, Royal Inns of America is planning to build a hotel in downtown South Bend in the very near future . Our plans call for a 150 room Royal Inn with a restaurant and cocktail lounge. In addition, our plans call for a swimming pool , a therapy pool , two sauna baths, and an exercise room. The project cost is estimated to be approximately four to four and one-half million dollars . In running the hotel , we will employ quite a number of people . Although the exact number will vary with the occupancy, we anticipate the minimum employment will be approximately 55 people. All but two or three of these people would be hired from your community. This will create a payroll of approximately $15, 000 per month. Inasmuch as they are employed locally, this would not create any additional burden on the present school system. Royal Inn ' s program utilizes a limited partnership arrangement. Under this arrangement this Corporation maintains approximately 50o and through John Nuveen & Company we sell the other 500 . These are sold in increments of 1% . A to interest in South Bend will be approximately $13 , 100 , which will mean that we will receive $655, 000 in equity from our partners . The sale of these percentage interests are treated as securities and as such are registered with the Securities and Exchange Commission . For financing we are seeking a $2 . 6 million to $2 .8 million 6% bond issue with a lease term of 20 to 25 years . All additional equity needed over and above the financing and the partners ' contribution will be furnished by Royal Inns of America , Inc . Mr. Karl King March -29, X972 Page 2 . J We look forward to becoming part of the South Bend community and we hope we can move forward rapidly with this project. If you have any questions regarding our program, please give us a call . '} 1 Very truly yours, ROYAL INNS OF AMERICA, INC. ;s Wm. L. Loizeaux Vice President - Finance WLL:vjt F SOUTH BEND COMMUNITY SCHOOL CORPORATION 635 SOUTH MAIN STREET SOUTH BEND, INDIANA 46623 Office of Superintendent April 3, 1972 Mr. Karl King, President Economic Development Commission of South Bend County-City Building South Bend, Indiana 46601 Dear Mr. King: The Board of School Trustees for the South Bend Community School Corporation endorses wholeheartedly the construction project of Royal Inns of America, Inc. in the downtown area of South Bend. The school corporation does not consider that this project would cause any major change in school enrollments nor bring any burden upon present school facilities. Sincerely, Howard Goodhew, President Board of School Trustees HG/mm AREAPLAN COMMISSION HOWARD BELLINGER, EXECUTIVE.DIRECTOR ROOM 1219 COUNTY-CITY BUILDING OFST. JOSEPH COUNTY, IND. 227 W. 7EFFERSON BLVD_ SOUTH BEND, INDI)NA 11101 II April 4 , 1972 Mr. Karl King, President Economic Development Commission of South Bend County-City Bldg. South Bend, Indiana 46601 Re : Construction of a Royal Inns of America, Inc. , hotel in downtown South Bend Dear Mr. King: Please be advised that the Executive Committee of the St. Joseph County Area Plan Commission has reviewed your letter of March 30 , 1972 covering application for the issuance of revenue bonds to enable the construction of a Royal Inns of America, Inc. , hotel in downtown South Bend. The Area Plan Commission, through its Executive Committee, finds the proposed construction of a Royal Inns of America, Inc. , hotel on the subject property located in the Central Downtown Urban Renewal Project Ind. R-66 to be totally consistent with the R-66 Redevelopment Plan. The Area Plan Commission has previously approved the Urban Renewal Plan for the Central Downtown Urban Renewal Project Ind. R-66, which proposed a hotel-motel use for the very site in question. The Executive Committee of the Area Plan Commission at a meeting held on Tuesday, April 4 , 1972 passed a motion finding that the proposed construction of a Royal Inns of America Inc. , hotel in downtown South Bend to be consistent with the St. Joseph County Comprehensive Land Use-Transportation Plan and the Central Downtown Urban Renewal project Ind. R-66. F Page Two Mr. Karl King Subject: Construction of a Royal Inns of America, Inc. , hotel in downtown South Bend. The Area Plan Commission is pleased to recommend favorably the proposed construction of a Royal Inns of America, Inc. , hotel in downtown South Bend and extend our appreciation to the active roll being taken by The Economic Development Commission of South Bend for aiding new development in the Central Downtown Urban Renewal Project. Mr. J. Frank Miles, President - Area Plan Commission cc : Honorable Jerry Miller, Mayor City of South Bend Peter Nemeth, President, South Bend City Council JFM/et w � ' ST.,JOSEPH BANK&TRUST COMPANY On the plaza at Michigan &Jefferson Streets, South Bend, Indiana 46601 Jerome B. Kearns, Executive Vice President (219)284-1251 April 4, 1972 Mr. Karl King, President Economic Development Commission City of South Bend County-City Building South Bend, Indiana 46601 Dear Mr. King: Please permit this letter to serve as our commitment to purchase the Industrial Revenue Bonds in an amount not to exceed $2,800,000 to be issued for the purpose of constructing a 150-room Royal Inns of America Hotel to be constructed on Parcel No. 7-1 situated in the Central Downtown Project, R-66. The term of these bonds will coincide with the lease entered into by the limited partnership formed by Royal Inns of America, Inc. and other investors. l Cordially, Executive Vice President JBK:VJT A RESOLUTION SETTING FORTH THE NEED FOR ECONOMIC DEVELOPMENT WHEREAS: The City of South Bend is currently experiencing a high rate of unemployment, and WHEREAS: By virtue of a current study, a need exists for an additional hotel-type facility, and WHEREAS: The economic benefits of additional tax bases is needed, and WHEREAS: The Economic Development Commission finds that the application of Royal Inns would satisfy the above noted, NOW, THEREFORE, BE IT RESOLVED by the Economic Development Commission that because of insufficient employment opportunities and insufficient diversification of industry, the economic welfare of the city would be benefited by the acquisition and leasing to Royal Inns of a hotel facility to be constructed. THIS RESOLUTION ADOPTED BY THE ECONOMIC DEVELOPMENT COMMISSION OF THE CIVIL CITY OF SOUTH BEND, INDIANA, THIS 30th DAY OF March 1972. PRESIDENT - KA . KING, JR. VICE PRESIDENT - FRED CRAVEN i, SEC TARY -' EUGE , E PAJAKOWSKI