HomeMy WebLinkAbout06-14-2011 Proposals for apartments and townhome projects approved for 2 downtown sites O4SpU TH
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Office of the Mayor
NEWS RELEASE
June 14,2011
6:15 p.m.
Proposals for apartments and townhome projects
approved for 2 downtown sites
Contact: Mikki Dobski, Director of Communications&Special Projects, 235-5855 or 876-
1564; or David Relos, Economic Development Planner, 235-9371
The historic Hotel LaSalle is being studied by a Kalamazoo developer for potential
rehabilitation into 45 to 65 market-rate apartments with lower-level commercial space,
while a South Bend developer is planning 10 new townhomes for the East Bank area.
South Bend's Redevelopment Commission, today, approved:
• A proposed commercial purchase agreement of the Hotel LaSalle, 237 N. Michigan
St., by Mavcon Properties, LLC of Kalamazoo, Mich., which will study the hotel for
possible rehabilitation with support from both Historic and New Market tax credits.
• Preparing a contract for the sale of a 1.266-acre site at northeast corner of Jefferson
Boulevard and Niles Avenue to David Matthews of the River Race Townhome
Development for 10 townhomes immediately and two potential commercial
buildings in the future.
"Our economic development staff has been working with these developers for some time
and believe these projects have good potential for moving forward," said Mayor Stephen
J. Luecke. "These projects would build upon other recent efforts to increase housing
opportunities downtown, including American Trust Place and the East Bank Townhomes.
Both projects represent the type of efforts that our residents called for in City Plan, South
Bend's comprehensive strategy."
HOTEL LASALLE: "Staff has, over the years, worked with many interested parties
from various parts of the country for the rehabilitation of the Hotel LaSalle," said David
Relos, economic development planner for the City of South Bend's Department of
Community and Economic Development.
Vacant since the late 1990s, the 300-room Hotel LaSalle closed in 1973. It was listed on
the National Register of Historic Places in June 1985. The hotel"has been maintained by
the Commission in the hopes that one day the right group would step forward [with] both
the ability and capability to return the Hotel to a productive use and asset to downtown,"
Relos said. "Today, I would like to tell you that we feel that group has emerged."
Mavcon Properties has considerable experience in analyzing and developing plans for
renovation of significant buildings including several historic properties. Their current
project is an $11.3-million rehabilitation of the historic Metropolitan Center in downtown
Kalamazoo that includes four connected commercial buildings originally constructed in
the late 1800s. Before closing on the sale of the LaSalle Hotel, Mavcon would hire
architectural, engineering and environmental consultants to plan for an eventual
rehabilitation. Total projected costs for the renovation are expected to be $15m.
"South Bend is a very unique town where we are willing to invest our time and money,"
said James Dally, President, Mavcon Properties. "We are looking forward to working
with the City and feel that this is very promising opportunity to restore the Hotel to its
former status as a productive landmark within the downtown area. The building is
structurally sound, in a great location, and will be a draw for market rate apartments."
RIVER RACE TOWNHOMES: David Matthews, principal of the River Race
Townhome Development, is the developer of the East Bank Townhomes project, which is
now under construction along the East Bank of the St. Joseph River,just north of Colfax
Avenue on the former Rink Riverside Printing site. This new development, on the former
Troegger Sheet Metal site, would include 10, 1,400-square-foot, three-bedroom units.
Made of brick with 3.5 baths and two-car attached garages, the townhomes would start in
the $200,000 range. They would front along Niles Avenue and have views of the St.
Joseph River and Century Center.
"It is really exciting to be a part of the River Race Development and act as a conduit for
the city to motivate people to move back into the heart of downtown South Bend.
Building on the success of the East Bank Townhome project and the construction of the
St. Joseph High School, these new all masonry townhouses on Niles Avenue will be a
great place to live in the vibrant downtown and East Bank neighborhood," said Dave
Matthews. "Families who take advantage of the City's partnership in this development
can purchase a new townhouse with great views of the river for less than building
elsewhere in the area." All interested parties are encouraged to contact Matthews at the
East Bank Townhome construction site, on the corner of Colfax Avenue and the St.
Joseph River, in downtown South Bend.
The Commission's approval for moving forward with the developer, on the contract for
sale of the property for $10, includes agreeing not to seek tax abatements on the project
(a $93,000 value) and no further financial participation in the project from the
Redevelopment Commission. As part of the development, 77 guest and street parking
spaces would be created along Jefferson Boulevard, Washington Street and behind the
building.
Mikki Dobski,Dir.
Communications and Special Projects
off,f' 1400 County-City Bldg
'[ Oil So.Bend,IN 46601
574-235-5855 w
57476-1564c
"rrrti 574-235-9892 fax
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