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tF/ � % v; Department of
rgy' ; Community Investment
Memorandum
Thursday, January 17, 2013
TO: Redevelopment Commission /fig
FROM: David Relos, Economic Development Plannerfl nl "
SUBJECT: Hotel La Salle - Return of Mavcon deposit t�
On June 14, 2011, the Commission approved a Commercial Purchase Agreement
(Agreement) with Mavcon Properties, LLC, from Kalamazoo, Michigan. This Agreement
gave Mavcon two 180 day inspection periods to determine the feasibility of rehabilitating
the Hotel in to approximately 60 market rate apartments.
The Agreement called for an initial deposit of $2,000 at the time of signing, with another
$2,000 deposit if a second 180 day inspection period was requested, which it was. On
deposit is a total of$4,000.
On July 12, 2012, the Commission approved a 60 day extension of the Agreement, to
allow more time for both parties to analyze the needs of the other. This extension
required no additional deposit.
According to the Agreement, deposits made were to be kept if Mavcon gave notice it
would not proceed after the first inspection period. Because this has been an ongoing
effort by both parties to reach a solution, Mavcon did not give notice, though it has been
determined we cannot accommodate their financial needs.
Considering the effort put forth by Mavcon this past year and a half, and in hopes of
maintaining a future working relationship with them, staff requests approval to return
their $4,000 deposit.
There continues to be interest in the rehabilitation of the Hotel, and it is hoped this year
marks the beginning of a concrete plan that will see the Hotel become an anchor to the
downtown area.
227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 I P: 574-235-9371 I FAX: 574-235-9021 I SOUTHBENDIN.GOV