RM 11-16-79 - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Me ting - November 16, 1979 7. PROGRE a. Mr 1s ne br th on su it S REPORTS Jerry Miller continues... provided in the building. Quality product will be essary in order to market.that property and reach a akeven.rental and occupancy. Fourthly, all but one of proposals lacked any substantial cash equity outlay the part of the developer. Cash equity °which would en,- e that the developer has a stake in the project should be less successful than anticipated. In summary, we've suggested to the Redevelopment Authority that if a proposal for renovation be approved and pursued that the Redevelopment Authority, number one receive from the developer a sum of money placed in escrow demonstrating th good faith of that developer, Secondly, of course, mo e detailing on 'physical plans and costing out those ph sical palns. And thirdly, that the developer finalizes hi arrangement for financing. We feel that only after th se three steps are taken will the interest of the Redevelopment Authority and the City be fully attained and recognized. Thank you, Mr. President. Mrl Nimtz: Thank you, Jerry. Mr Robinson: If we were to consider the developer's pro- posals, would it be unreasonable if this Commission were to request a firm commitment made by the developers and show proof that he has 75 or 80% bona fide occupancy in the building already? In other words, I feel that unless we have something along this line, all this has to be pure speculation, because if they are going to remodel this building, which at the present time, if I remember correctly, the rooms are just like override broom closets so whoever the prospective tenant might be, they're going to have to re ovate this building to suit their prospective tenant. Vm saying that unless they have firm commitment of a certain percentage, I feel that it's still speculative in nature and I'm not sure we want to see the building stand as it is and if they can't get the proper tenants, and can't get it filled up. It's in bad shag right now. Mr. Ellison: If we make an effort to follow the Jannotta recommendation with respect to a developer putting some dollars in, which is a way of saying if we're going to take a substantial risk, then you take a substantial risk. That be and that, if the developer is capable of securing financ- ing, whoever is going to do the financing will certainly require that they be able to achieve tenancy at a certain rate during a particular period.. So, normally we're not as -20-