02-23-83 Committee of the Whole - Laserfiche WebLink

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(liammttirt apart 'I UJO the emu= Oioututi Df 21*[ Inv of frOidil nib COMMITTEE OF THE WHOLE The February 23, 1983 meeting of the Committee of the Whole was called to order by Councilman Zielinski at 5 :05 p.m. in the Council informal meeting room. • Persons in attendance included, Councilmen Taylor, Crone, Zielinski, Harris, and Beck, Attorney John Ford, Sister Eileen Wrobleski, SJMC, Dan Brewer, of the St. Joseph Bank Trust Department, Eugenia Schwartz, Ann Kolata, Jon Hunt, and Kathleen Cekanski-Farrand. Councilman Zielinski noted that the purpose of the meeting was to continue the discussion of Bill No. 152-82 regarding the zoning of the Quality Inn which is set for public hearing on Monday, February 28th. Jon Hunt informed the Council that on February 3rd his Department sent out letters to several hotel/motel chains regarding the Quality Inn. A copy of the letter was passed around the Committee. The only response was the Dunfey Hotel of New York and a local group out of the 23 hotel/motel chains contacted. Mr. Brewer stated that Lloyd Taylor headed the marketing effort regardini the 147 room Quality Inn. He knows that Best Western, the Radisson and the Holiday Inn were contacted. He further noted that the St. Joseph Bank and Trust Company was the minority investor at 40% and that the Federal Depository Insurance Company, (FDIC) was the majority investor at 60%. The bank at this point was unwilling to finance any new developer. At the recent sheriff sale St. Joseph. Bank received property. Approximately $55,000 are paid yearly in taxes, and taxes on the parcel are current. The St. Joseph Medical Center, Inc. represented by Mr. Ford offered to purchase the property for $1.7 million dollars Mr. Ford noted that extensive renovation costs will be necessary. He stated that the new proposed use for the property would be good for the community. He further stated that HUD had approved the concept of financing the project and that the money was reserved and tied to the location of the land. If formally approved they would be five months away from construction and approximately one year from occupancy. Councilman Beck raised several questions regarding various telephone calls that she was receiving. Councilman Crone stated that many people do not uhderstand the process being used. Persons are concerned about getting it off the tax roles and having the property sold to a not for profit organization. Upon questioning she was told that the HUD money was competitive in nature. Sister Wrobleski stated that such things as Meals on Wheels and Meals for Head Start programs were also being considered for the location. Mr. Brewer stated that the Quality Inn was built in 1972 and had not made a profit during that entire period of time. Councilman Taylor praised the leadership role of St. Joseph Bank in attempting to utilitze the property. He stated that it was a tough issue and was hoping for a miracle. If any other developers would be forthcoming they would have to show substantial proof at Monday night' s Council meeting that the pull •Ad• a rvUuIMIMS co.