HomeMy WebLinkAbout6.B.(3) Option Contract with LaSalle Housing Partners_ ~ ~ yOIiT~F
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Community & Economic Development `~~~~.j~'
1200 County-City building, 227 west Jefferson, South bend, Indiana x6601-1830 Phone 574/235-9371 fax 574/235-9021
To: Redevelopment Commission
From: Jennifer Laurent
Subject: Contract for Option
llate: September 2. 2008
On June 3. 2008. a proposal was presented to the Commission by Gary I (assenflu of Garrison
Properties, Kansas City, Missouri, to purchase an Option on the Hotel LaSalle, property o~a~ned by
the Commission at 237 N Michigan Street in the South Bend Central Development Area. Uarrison
Properties proposes an adaptive reuse of the building to create the I Iotel LaSalle Lofts, 49 market
rate apartment units and 15,000 square 7~eet of retail and office space. The proposal was approved b_v
the Commission ~yith the directive that a contract would be negotiated and brought forward for
subsequent approval.
Since that time Garrison Properties has separated from Mecca Companies. which was initially
proposed to be a local partner and leasing manager for the project. After some discussion with Mr.
Hassentlu, 1 am comfortable that he is committed to seeing the project go forward and putting into
place the appropriate project management team. 1've asked him to put into a report for the benefit of
the Commission the espcctcd pre-development timeframc he anticipates, in other words, a clear
outline of ho~~~ the Option period of due diligence will he spent_ 1~his report is attached.
Lhe preliminary project pro forma shows a $ LS million gap in financing shat ~a-ill ultimately need to
be verified and addressed. As a first step, staff will work ~~ith the developer to shoe- how the City's
financial participation on a project might be determincd_ including financing of a parking structure in
support of the project or other related inicastructure.
Your approval is recommended.
~1 o Commission re contract Garrsion.doc What We Do Today Makes A Difference!
HOTEL LASALLE LOFTS PRE-DEVELOPMENT TIMELINE
Once we receive the executed Option Contract, the following will take place
City TIF
We will enter into negotiations with the City to provide TIF financing, and any other public
incentives that may be available, that will be necessary gap financing for the project. Since we will
have only preliminary estimates to start. this will be a work in progress, but we must know be
certain that enough funding will be there for feasibility and continued spending of project dollars.
Total Estimated Time Frame: 2 months.
Environmental and Structural Review
We will engage consultants to assist us in the review and determination of cost for any
environmental conditions and remediation, as well as structural issues. These activities can take
place concurrently with the City TIF review and Plans and Specs. Total Estimated Time Frame
2 months.
Epuity and Debt Financin
We will seek equity and debt proposals from potential parties from determination of
reasonableness of TIF to project completion. We have already had discussions with an FHA
lender on the debt financing and have had discussion with New Market Tax Credit (NMTC)
equity/debt allocatees- As a matter of fact, Garrison Revitalization, an affiliate. has applied for its
own NMTC allocation. We have had discussions with historic tax credit investors, too, as we are
involved in this development in a large regional scale. Total Estimated Time Frame:
Determination of TIF to Project Start.
Plans and Specs and Historic Approvals
We intend to proceed with plans and specs for the building upon reasonable assurance that the
TIF financing from the City will be sufficient. The first step will be to get to 50% completion of the
plans so we can submit to the local State Historic Preservation Office for their review. They, then,
review and get to the National Park Service. Then, the NPS makes comments and they'll likely
require more changes and drawings. Then, we'll proceed to final drawings. Total Estimated
Time Frame: 5 months.
Local Involvement
We'll identify and retain. possibly, a local architect and, certainly, a local commercial real estate
broker to be our local representative. We have been in contact with CB Richard Ellis' office about
the brokerage and with a local architect on assisting on the plans. E+U Architects, St. Louis. MO,
will be the primary design firm. The local team members will be available for meetings with the
City, providing access to the building, and the broker will be showing the building to prospects.
We will be seeking retail and office tenants for our bottom two floors. Total Estimated Time
Frame: Project Start through Completion.
Bidding and Construction Start
Once we have 100% completion of plans and specs, our contractor can get hard bids and get to a
construction contract and construction start. Total Estimated Time Frame: 1 month.
Construction Completion
Total Estimated Time Frame: 12 months.
We, at Garrison, are excited about the LaSalle Hotel project. We think it can be a fantastic
project. It will require a strong public/private partnership between City and developer, but it can be
a reality. We are willing to put a lot of out-of-pocket dollars at risk to get to the finish line. Between
the costs and our dedication of manpower to the project, our dedication cannot be questioned.
~,Ne have the capacity to make projects like this happen, as evidenced by our many other
successful adaptive re-uses of historic structures. We will provide monthly report to the City on
our progress and be available to the City at all times. As mentioned, and, as I'm sure you can see
above, the project pre-development process will take longer than the 6-month period in the
Option Contract, but as long as the City is willing to provide extensions, we are willing to move
ahead spending dollars and time.
Garrison "Gary" Hassenflu
Garrison Development Company
Garrison Management Company
Garrison Construction Company
President
416E 3rd Street
Kansas City, MO 64106
direct. 816-474-4775
main. 816-474-4857
cell. 816-898-9285
fax.816-474-4867
v~~«~~~~. ~arrisoncompanies.com
OPTION CONTRACT
fI IIS OP~110N CON~LRACT is made on September 8, 2008 (the "Execution Date"), by
CITY OF SOU"FIf BEND. DEPAR~LMENT 01' KI:DLVELOPMEN7~, AC~L[NG BY AND
"hHROUGH 'CHE SOUTH BEND REDEVELOPMEis]T COMMISSION (the "Seller") and
LASALLIi 1{OUSING PAR"I~'ERS. L. P., an Indiana Limited Partnership ("LaSalle" or the
"Purchaser"), LASALLE HOUSING CORPOIZAI'ION, an Indiana Corporation. General Partner
of LaSalle.
Seller and Purchaser agree:
L Grant of Option. Seller grants to Purchaser an option to purchase, subject to the
Perms and conditions stated in this Contract. the real property (the "Property") legally described
on Exhibit A. The property includes (i) any buildings, structures, and improvements located on
the land: (ii) all trees and shrubs located on the land; (iii) all rights of v<ay or use, easements, and
other rights benefiting or appurtenant to the land; (ie) any strips or gores of land relating to the
land; and (~~) all right, title, and interest of the Seller to any land lying in the bed of any street.
alley or road (open or proposed) abutting the land.
2. Option Period: Fee: Extension. The option is granted by Seller to Purchaser Ior
an initial period terminating on the same day of the sixth (6th) month following the Execution
Date ("Initial Option"). Purchaser shall pay a iee of Two "l~housand Five 1lundred Dollars
(52.00) to Seller for the Initial Option. Seller, at its absolute discretion, may permit additional
options of three (3) mouths each upon payment by Purchaser of One Dollar ($1.00) as
consideration for a rene~o~al of the ]nitial Option or any subsequent renewal options (collectively
referred to as `'Rene~a~al Option").
~. Disposition of Option Fee. Seller may retain the option fee whether or not the
option is exercised: provided that if the option is exercised and the transaction closed, the entire
option fee paid shall be applied as a credit to Purchaser against the purchase price.
4. Purchase Price. So long as the conditions of paragraph 9 are met to the satisfaction of
Seller. the purchase price for the Property ~~ill be One Dollar ($1.00). The pw-chase price shall
be paid at closing.
~. 7~itlc. At closing, Scllcr shall conve~~ to Purchaser good title to the Property by
~i-arranty deed. subject only to current lases not past due.
6. "Lases. "Lo the extent anv real estate taxes are due, they shall be apportioned between
the parties at the closing in the following manner:
(a) All general real property taxes (including any interest and penalties and anv
amounts necessary to redeem the Property Iiom anv tax sales) levied upon or
becoming due and parable on the Property prior to the llate of Closing shall be
paid b~~ Seller, or Purchaser shall receive a credit on the purchase price in the
amount of any such unpaid ~~cncral real property taxes. General real property
taxes for the calendar year in which the closing occurs shall be prorated as of the
Closing Date. Scllcr shall be obligated for those taxes attributable to the time
period prior to and including the Closing Date and Purchaser shall receive credit
at closing for such amount. The last available assessment and rate shall be used to
compute the proration if current figures are not available.
(b) If on the Date oI~ Closing the Property or any part thereof is or has been aflcctcd
by anv special assessment, or by assessments which arc or may be payable in
annual installments of which the first installment is then a char~c or lien, or has
been paid, then. for purposes of this Contract all such special assessments and the
unpaid installments of any assessment payable in annual installments, including
those installments ~a~hich are to become due and payable after the Date of Closing,
are to be deemed to be duly payable and to be liens upon the Property and shall be
paid b}~ Seller on or before recei~~e a credit on the purchase price in the amount of
any such unpaid assessments or installments.
If the Property is not separately assessed for any subsequent tax bill Seller shalt pay the cniire
bill and Yw~chaser shall reimburse Seller for its percentage share computed as set forth above.
7. Site Investigation. Purchaser shall have the right to conduct a site investigation of
the Property. l~he right to conduct a site investigation shall include the right to take
measurements.. make inspections, make boundary and topographical survey maps, and conduct
geotechnical, v~~etland, woodland and other studies reasonably required by Purchaser. ivo such
site investigations shall constitute a ~a~aiver or relinquishment on the part of Purchaser of its
rights under any co~~enant, condition. representation or wan~anty of Seller in this Contract.
Purchaser shall pay the cost of performing any measurements. inspections or tests performed on
the Property by or on behalf of Purchaser. Purchaser shall defend. indemnify and hold Seller
harmless from any claim against Seller based upon personal injury caused by the negligence of
an employee, agent or contractor oC Purchaser, while conducting the site investigation of the
Property. If Purchaser damages the Property. Purchaser shall restore it to substantially the same
condition as existed prior to the damage.
Seller shall, upon the execution of this Option by the parties, deliver to Purchaser such of
the tollo~o°ing as are in the possession of or available to Scllcr: existing soil tests, surveys,
environmental reports, underground storage tank test results, waste disposal records, permit
records, traffic studies and other engineering test and studies pertaining to the Property. In
addition, Scllcr shall deliver to Purchaser a copy of the most recent tax bid(s) relating to the
Property, a cope of the title deed(s) for the Property, and copies of all existing leases.
H. Purchaser Conditions. The obligations of the Purchaser herein arc subject to the
following conditions (the "Purchaser Conditions") precedent:
(a) 1~hat all representations and warranties made by Seller in this Contract are true as
of the Date of Closing; and
(b) That Purchaser obtain assurances from the title insurance company that it will,
upon purchaser obtaining title to the Property, insure good title to the Property in
Purchaser, subject onl}~ to the matters set forth in Paragraph 6 of the Contract and
insure ov~cr any gaps between the property and any adjacent property owned or to
be acquired by Purchaser.
(c) All requirements under Indiana law shall have been complied with by Seller in
order to authorize the purchase price contemplated under this Option Contract.
Purchaser may waive any of the conditions in whole or in part. Purchaser may cancel this
Contract by notice in ~~~riting to Seller at any time prior to closing for the reason that an_v
condition has not been satisfied or wain-cd.
9. Seller Conditions. The obligations of the Seller herein are subject to the
f~~llowing conditions (the "Seller Conditions~~):
(a) All representations and ~earranties made by Purchaser in this Contract arc true as
of the date of Closing:
(b) All requirements under Indiana law shall have been complied with by Purchaser
in order to authorize the purchase price contemplated under this Option Contract:.
and
(c) Purchaser shall provide to the satisfaction of Commission a ~~~ritten commitment
to incest a minimum of ~1'cn Million Dollars ($10.000.000) in the Project
consistent with the project nan~ative attached hereto and made a part hereof as
Exhibit B. Seller may waive any of the conditions in «-hole or in part. Seller may
cancel this Contract by notice in writing to Pw~chascr at anv time prior to Closing
for the reason that any condition has not been satisfied or waived.
10. Am~exation andLonin~: Seller's Land. During the option term, Purchaser may
institute the necessary procedures to rezone the property and/or obtain special use permit(s) so
that the Property may be used Cor the residential subdivision desired by Purchaser. Seller agrees
to cooperate fully with Purchaser and join in or file any applications or petitions if the relevant
governmental authority shall so require.
l 1. Title Insurance. Vv'ithin thirty (30) days after the Execution Date, Seller shall
deliver to Purchaser a commitment for an owner's title insurance policy (AL~hA form I3), dated
after the Execution Date, from Lawyer's Title Insurance Corporation or other title insurance
company satislactorv to Seller (the "title insurance company"), in the amount of the purchase
price. with the Schedule I3 Genera] Exceptions deleted or endorsed over, if such deletion or
endorsement is obtainable in the State of Indiana fi~om the title insurance company, and showing.
good title to the Property in Seller_ subject onl~~ to the matters described in Paragraph 6 in the
Contract. The title conuniuncnt shall be conclusive evidence of good title as therein sho~a~n as to
all matters insured b}' the policti•, subject onl~~ to exceptions as therein stated. if the commitment
discloses any other exceptions, Seller shall ha~~e thirty (30} days ]i~om the date ~~~hich such
commitment bears ~~~ithin ~~~hich to cw~e such defects and to furnish a commitment showing such
exceptions removed. If such exceptions are not removed ~~~ithin said thirty (30) da}~s. Purchaser
may cancel this Contract or may, at its election. take the title as it then is (with the right to deduct
from the purchase price liens or encumbrances of a definite or ascertainable amount), upon
~ivin~a to Seller notice of such election.
12 Closing. The transaction contemplated b~~ this Contract shall be closed, on a date
(the "Date of Closing") to be agreed by the parties, but not later than thirty (30) days after
Purchaser exercises the option. Purchaser and Seller Shall comply ~~ith the Collo~~°ing procedures
relating to the dosing:
(a) Seller shall execute. acknov,~ledge and deliver to Purchaser a «~arranty decd
conve~~ing the Property to Purchaser, subject only .to the permitted exceptions
referred to in Paragraph 1 in the Contract, which shall be i^ form for recording.
Seller shall pay the transfer tax (stamp) andior conveyance fee. Seller shall
submit the proposed form of warranty deed to Purchaser for approval at least ten
(] U) days prior to closing.
(b) Seller shall deliver to Purchaser all other documents necessary or advisable to
consummate this transaction, including a ~~endor's affidavit and corporate
resolutions authorizing this transaction in a form reasonably satisiactorti~ to
Nurchaser and the title insurance company.
(c) Seller shall cause to be furnished and delivered to Purchaser, at the sole cost and
expense of Seller, an owner's title insurance police (ACTH Form f3) (or a
marked-up title commitment dated as of the Datc of Closing and insuring the time
gap, if any, bettyeen the Date of Closing and the date of recording of the deed(s)
to Purchaser) issued by the title insurance company, insuring good and marketable
fee simple title to the Property in Purchaser in a face amount equal to the purchase
price, and containing no exceptions other than the permitted exceptions referred to
in Paragraph 6 herein. Seller shall. at Scllcr's expense, cause the title insurance
company to (i) delete or endorse over the Schedule 13 General Exceptions from
such title policy, if such deletion or Indorsement is available in the State of
Indiana from the title insurance company. and (ii) sho~~~ all taxes paid for the year
of closing and all prior years.
(d) Sclicr shall deliver to Purchaser, in form satisfactory to Purchaser, a Nonforeign
Affidavit complti~ing ~~iih Internal Revenue Code Section 1445. If Seller fails to
deliver such Affidavit to Purchaser, Purchaser may withhold, ii~om the funds due
Seller at closing" ten percent (10° ~,) of the total purchase price and pay this sum to
the IKS.
(e) Seller shall execute, acknow~lcdge and deliver to Purchaser a recordable ~~~arranty
decd covering any discrepancies bet..°een the recorded and surveyed legal
descriptions of the Property, and any gaps bet~~~een the Property and any adjoining
4
parcels owned or to be acquired by Purchaser, w°hich shall be i~t form for
recording.
(1) Seller shall prepare and record any required environmental disclosures.
(g) Purchaser and Seller shall provide the title insurance company with such
information as may be required to report proceeds from the real estate sale on a
Porm 1099-5.
(h) Purchaser shall deliver or cause to he delivered to Seller a certified, cashier's or
title insurance company check payable to Seller in the amount of the purchase
price, plus or minus: the credits due Purchaser of real property taxes; the credit
due Purchaser for the option lee; the cost of the title insurance police which
Purchaser is authorized to deduct from the purchase price and pay to the title
insurance company at closing; the transfer lax (stamp) andior conve~~ance fee. the
reimbursement of survey cost; and any other credits due Purchaser (or Seller) or
any other adjustments to the purchase price as provided in this Contract.
1 ~. [scrow. At the election of Seller or Purchaser upon notice to the other party
given prior to the Date of closing, this sale shall be closed through an escrow with the title
insw~ancc company, with such special provisions inserted in the escrow agreement as may be
required to conform with this Contract. Upon the creation of such an escrow, anything herein to
the contrary notwithstanding, payment of the purchase price and delivery of the deed(s) shall be
made through the escrow. 'I~he cost of the escrow shall be paid by the party making the election.
] 4. Possession. Complete and exclusive actual possession of the Property (free of all
tenancies and occupants) shall be delivered to Purchaser nn the Date of Closing.
15. Representations and Warranties. Seller rcpresenis and warrants to Purchaser, as
of the date of its ezccution of the Option of which this Contract is a part, and as of the Date of
Closing, that:
(a) Seller is the owner of good and marketable title to the Property and no
other person or cntit_v has any dower or other interest in, or other claim to
all or any part of the Propem~.
(b) Seller has the capacity and authority to enter into this Contract and to
consummate the transaction contemplated herein including but not limited
to taking Company action required to authorize this transaction with
Purchaser.
(c) Seller has not received any notice of, and to the best of Seller's know°ledge
there arc no (i) proposed special assessments, condemn~~ition, or changes in
the roads adjacent to the Propert~~. or (ii) pending public improvements
which will result in any charge being levied or assessed against, or a lien
bcin~ created upon, the Property.
(d) A11 laws, ordinances, rules, regulations and orders (including. but not
limited to, those relating to coning, building, lire. health. salety and
ens°ironmental control and protection) of any government or any agency.
body or subdivision thereof: bearing on the Seller's o~~ncrship, operation
or sue o1 the Property or an~~ part thereof. have been or will, prior to the
closing, be complied v<~iih by Scllcr; all notices, licenses, permits.
certificates and authority, required in connection with the Seller's
occupancy or use of the Property or any part thereof, have been obtained
and are in full Corce and effect.
(e) Neither the execution of this Contract nor the consummation oC the
transactions contemplated herein «-ill constitute a breach under any
contract or agreement to which Seller is a party or by ~~fiich Scllcr is
bound or affected or which affects the Property or any part thereof.
(f) There are no actions. suits or proceedings pending, or to the knowledge of
Seller threatened, before anv judicial body or any governmental authority
or anv order, writ, injunction, decree or demand or anv court or any
governmental authority relatin~~ to the Propertti~ or any part thereof.
1 E. E3roker. The parties represent to each other that no broker is involved in this
transaction. The parties shall indemnity and hold the other free and hannlcss from all losses.
damages. costs and expense, including reasonable attorney's lees, which either ma_v suffer or
incur as a result of the other's breach of the foregoing representation.
17. Condemnation. Purchaser shall have the right, in the event that all or part of the
Property is subject to a bona fide threat of condemnation, or is taken in the exercise of the power
of eminent domain, or by way of sale in lieu thereof. by written notice to Seller. to elect to cancel
this Contract prior to the Datc of Closing. If no such election is made by Purchaser, this Contract
shall remain in full force and effect and the Purchase and sale contemplated herein. less any
interest taken by condemnation, or sale in lieu of condemnation, shall be effected with no further
adjustment, and Seller shall, at the closing. assign to Purchaser all of Seller's right. title and
interest in and to am~ award that has been or that may thereafter be made for such taking. Seller
shall immediately notify Purchaser in the event that the Property or any portion thereof becomes
the subject of a condemnation proceeding.
18. Notice. Notices delivered personally or sent by certified or express mail to Scllcr
at Community and Economic Development, Lth Floor, County-City Building, South Bend.
Indiana 46(01. A~I~~I~ENTION: Don Inks. or to Purchaser at Garrison Ilassenfiu. President.
LaSalle I lousing Partners, LP, c/o LaSalle ]lousing Corporation, General Partner, 4l6 E. 3rd
Street. Kansas City, 1~~lissow-i 64106 shall be sufficient notice Notices delivered personally, sent
by certified mail, or by express mail by a nationally recognized carrier, notices shall be deemed
given on the date receiycd by the party to ~i~hom the notice was sent.
6
19. Successors and Assi~ This Contract shall be binding upon and inure to the
bcnelit of the parties hereto and their respective heirs, legal representatives, successors and
assigns.
?0. Survival. "l~he terms, conditions, provisions, agreements, representations and
warranties contained in this Contract shall not merge into the deed and shall sw-vive the closing
of this transaction.
?1. Govcrnin~ Law. 1~his Contract shall be governed by. and construed in accordance
~i°ith, the la«~ of the State of Indiana.
22. I?ntire Agreement. phis Contract (including all exhibits attached hereto) contains
the entire agrecmcx~t bct~~~ecn the parties with respect to the subject matter hereof and supersedes
all prior understandings with respect thereto.
23. l~xhibits. All exhibits referred to herein and attached hereto shall be deemed part
of this Contract.
2~. Severabilit~~. 1~hc invalidity or unenforccability of any provision of this Contract
shall not affect or impair the validity of any other provision or term.
2~. 1~9odifications. 'this contract may not bemodilied, changed, supplemented, or
terminated, nor may anv obligations hereunder be waived, except by w~ritte^ instrument signed
by the party to be charged or by its agent duly authorized in writing or as otherwise expressly
permitted herein.
26. Chird Parties. 7~he parties do not intend to confer any benefit hereunder on any
person, lien or corporation other than the parties hereto.
27. Utility Charees. All utility charges and all charges for services of any type
furnished [o the Property by all governmental agencies, public utilities and/or private utilities
shall be paid b~~ the Scllcr to the date possession of the property is delivered to Purchaser.
I?ND of Option Contract containing 27 numbered paragraphs.
~SIG'x~A~1~URE PAGL' "1~0 FOLLOWS
7
SELLER
PURCHASER
CITE' OF SOUTH BEND, DI:PAR"fME:N"h LASALLE: HOUSING PARTNERS, L.P.. an
OF RLDEVELOPMEN"1~, ACTING BY AND Indiana Limited Partnership by
171ROUGH ~hIIE SOU"fIJ BEND LASALLE I LOUSING CORPORA"LION, an
RI~DI?VELOPMEN"h COMMISSION Indiana Corporation, General Partner
By:
I3v:
Gan~ison Ilassenllu
President
Its:
A"I`T1uST:
'.~~l.~n„u' ~u~T -- -
South Bend Rede~~elopment Commission
STATE Ol' INDIANA )
SS:
ST. JOSEPH COUN"]Y )
Before mc, a Notary Public in and for said County and State, personally appeared CITY OP
SOU"IH BEND, Dl?PARTMF,NT 01' RE,DLVL~,LOPMENT, AC1~WG BY AND TIIROUGN
THE SOUTH BEND RIDF,VI~LOPMFNT COMMISSION, by
and _ __ _ and ackno~yledged the execution of the foregoing on the
day of_ , ~00~.
My Commission Expires:
STATI: OF MISSOURI )
SS:
COON"hY )
Notan~ Public
Residing in St. Joseph County
Before me. a Notary Public in and for said County and State, personally appeared LASALLE
ROUSING PARTNERS. L.P., an Indiana Limited Partnership by Garrison IIassent]u, and
ackno~~~ledged the execution of the foregoing on the day of . ?008.
My Commission Expires:
. Notary Public
Residing in St Joseph County
Gi~inc~Ala~flllcf IuusCunt3.duc; 8~8U8
EXH1131T A
LEGAL llESCRIPTION
Lots numbered one (1). tai°o (2) and three (3) as lots arc kno~~~n and designated in the Recorded
Plat oC the Original Plat of the To~~~n, no~~~ City of South Bend, in the Office oC the Recorder for
St. ,Ioscph County, Indiana
Commonly known as: 237 North Michigan Street. South l3cnd, Indiana
Tax Identification Nos. 18-1002-004-; 18-1002-0011: 18-1002-0042
9
E~HI131T B
PROJECT NARRATIVE
The planned Motel LaSalle Lofts is the adapted re-use of the historic Hotel LaSalle Building.
located in Downto~~'n South Bend at 237 North Michigan Street. from a deteriorating and recant
building to a mixed-use development consisting of 49 market rate apartment units and 15,000
square feet of retail and office space.
hhe project developer gill be LaSalle Housing Partners. L.P., a to-be-formed Indiana limited
partnership. 7~he general partner will be LaSalle Housing Corporation, Garrison L. Ilasscnllu,
President. Mr. Hasscni7u is President of Garrison Development Company and has extensive
experience in all t~~pes of Tax Credit developments. Ilis most recent success was the National
2007 Timmy A~~ard, given by the National Mousing & Rehabilitation Association, for the best
Mired-]ncome i.argc housing development in the country. hotel LaSalle Lofts v,-ill be made
possible through tax increment financing. the sale oC historic and new ma~~ket tax credits, a
permanent loan. and a construction loan for gap financing. 'hhe total imtestment estimated for
the development is over ~] 3.5 million.
1~he proposed development includes ten (10) one bedroom (800 square feet), thirty-five (35) two
bedroom (],000 square heel). and ten (10) three bedroom (1,200 square hest) apartments. 7~here
is a stcadv demand for market rate housing in do~ti~ntown South Bend: comparables in the area
maintain a high occupancy level. 7~he Department of Community and Economic Development
has expressed willingness to participate in funding, design and construction of a structw~ed
parking facility on included propertti~ adjacent to the building, provided that the project
investment supports the expenditure of Tax lncremcnt Finance (17F) funds. Parking will serve
the tenants oh ljotel L.aSallc Lofts, the employees and customers of the commercial and retail
space, as well as the adjacent facilities, including the prominent Morris Pcrf~orming Arts Center.
1'he conul~ercial space will be inhabited by a select few retail and otiice users. The initial
conceptual plans call for ground level tenants such as: a coffeehouse (at the intersection of
LaSalle and Michigan), a deli or sandwich shop (Michigan Street access), a restaurant and/or pub
4vith access from LaSalle Street. The second i7oor is amenable for 6.000 square feet of oi7ice
space as sell as a balcony overlooking the entrance to the restraint "fhe development will bring
thriving business as w~cll as hundreds of residents to historical Downtown South Bend. An
estimated 250 jobs will be created for the construction period. In addition, approximately 50
permanent jobs will be created to support the management of the apartments and the operations
of the commercial and retail space. Pre-leasing activities have begun. Anticipated construction
w-ill begin in September, 2009 and complete in September, 2010.
10