03-06-08 With bond sale, Eddy Street Commons moves forward

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Office of the Mayor NEWS RELEASE March 6, 2008 5:30pm With bond sale, Eddy Street Commons moves forward Contact: Mikki Dobski, Director of Communications & Special Projects, 235-5855 or 876-1564 or Don Inks, Director of Economic Development, 235-9371 Even at a tenuous time nationally for the bond market, a $36-million bond to finance the Eddy Street Commons project sold successfully Wednesday, the City's last major hurdle before the start of a $200-million development that will transform South Bend. Crowe Chizek and City Securities, representing the City of South Bend, reported that the city will have the full $35 million available for the project after the bond issuance costs, according to Don Inks, director of economic development. The 25-year bond will cover the cost of constructing a 1,280-car parking garage, development of on-site infrastructure as well as improvements along Eddy Street and the extension of three city streets. "The quick sale of these bonds highlights both the strength of this project and the City of South Bend's fiscal stability," said Mayor Stephen J. Luecke. "Eddy Street Commons, one of the region's largest single developments in decades, now can move forward on a sound footing." Indianapolis-based Kite Realty Group, which is developing the project on property owned by the University of Notre Dame, is preparing to begin construction as soon as it officially acquires the property. Because the parking garage is surrounded on all sides by other structures, construction will begin first on that facility along with the utility infrastructure and an extension of Napoleon Street by the City of South Bend. The $200 million mixed-use development also includes: ~ Two hotels - anine-story, 255-room full-service hotel (with three floors of condominiums) and asix-story, 139-room limited-service hotel.