6.B.(3) Option Contract with LaSalle Housing Partners

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_ ~ ~ yOIiT~F ~`~ ~~ ~~. 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!