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South Bend Redevelopment Commission <br />Rescheduled Regular Meeting -March 10, 2006 <br />6. NEW BUSINESS (CONT.) <br />B. South Bend Central Development Area <br />() continued... <br />work with the city to come up with good <br />faith negotiations. They will put all their <br />numbers on the table. <br />Mr. Bergeman noted that they have shared <br />their pro formas with staff already. <br />Mr. King asked for clarification: IsEco- <br />Urban is saying that if land costs go up, it <br />forces up the price of its product to the <br />point that no one would buy it? <br />Mr. Keen responded that their market <br />research has shown that people will pay <br />about $300,000 to move downtown. They <br />believe the reason the project on the <br />Wharf site has not moved forward is that <br />its units were projected to sell for <br />$250,000 to $425,000 and the market <br />analysis did not support that. Eco-Urban's <br />market analysis confirms that. <br />Mr. Keen noted Eco-Urban believes they <br />could have a much more vibrant market <br />for the loft units proposed for Phase II, <br />selling them for $120,000 to $150,000. <br />Mr. Bergeman added that another thing <br />that factors into calculation is the South <br />Bend tax rate. Based on an estimated <br />value of $300,000, the annual tax bill of <br />each unit would be $6,000. <br />Mr. King asked if that doesn't make Eco- <br />Urbanwonder if building residential here <br />is a good idea. If it doesn't appear to be <br />economically wise, why do you think it's a <br />good idea to build residential on this site? <br />Mr. Keen responded that they believe this <br />10 <br />