RM 11-16-79 - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Meeting - November 16, 1979 7. PROGRESS REPORTS a. Mr. Ellison continues... concerned about what percent they have at a point in time, it's the lender who is concerned about that. And as long as the lender would irrevocably commit himself to financing thE project, then I would ,think we are adequately protected. I hould point out one thing to make the staff recommenda- ti n very, very clear. From our point of view there are tw decisions that have to be made. The first one is, the bu lding stays or the building goes. The second decision is, wh the prospective developer might be if the building is, going to stay. Now as we see it, we have lead the prospec- tive developers to believe that in light of the fact that none of theta offered our asking price, if the decision is to save the building we should reject all the bids and in,, st uct`the staff to negotiate the prospective deve- lopers. Thus, during the 90 day time period that's required by law, we'd be able to determine whether or not one of those proposals can be made bankable.. We would expect to ve then come back to the Commission after the period has been completed with a bankable deal that presumably would in- vo ve the disposition of the building for less that $295, 00i.00. The Commission cannot dispose of that building for le s than that amount until 91 days from the date it finds th proposals are not acceptable and the date it has indi- ca ed that it has entered into a period of negotiation. In short, then, until we know which way the building is go ng, it's very difficult for the staff to work with the developers to make the.deals more sound, because we cannot of ord to be in a negotiation position now unless we know th t there is an absolute public commitment to save the bu lding. Mr. Cira: Carl, since it does not stand in the way of the Ce tury Mall, I.don't know why we can't delay that 90 days. Mr. Brademas showed a big interest in the Odd Fellows Build- ing. I think he should deserve a chance to come up with the �! fi ancial conditions that Mr. Jannotta's group suggested. Ms. Auburn: I have not been able to be involved with the Ja notta Company when they were here in town, nor the staff be ause of my work schedule. I have stumbled along in my ow ..uninformed manner, not having either an architectuarl, en ineering or financial background. I have looked at all fo r of the projects. I discounted the housing project for tha same reason that Carl has indicated, without discussing anj of that with the staff. I have some questions about tha financing feasibility of all three projects. I don't kn w a lot about financing, but Mr. T. Brooks Brademas has zero percent equity put up, and I don't know of any bonding -21-