RM 11-16-79 - Laserfiche WebLink

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South BendlRedevelopment Commission Regular Me ting - November 16, 1979 7. PROGRE$S REPORTS a. Msl Auburn continues... company that will quote a bond with zero percent equity. The American Development Corp. has a 32 percent equity ratio, which is very low. The National Mobile Concrete bid has a 21 percent equity ratio, which is high enough that I believe that they could receive bonding, based on t4 t. I also have a question on the American Development Corp. proposal because I came up with a $27 sq. ft. amount in their perspective and Jannotta has come up with $52 sq. ft. So there appears to be a discrepence there. Neither the American Development Corp. nor the 100 Center dealt with the exterior east and south walls at all and if you go and look at the east and south facing walls, something must be do he to those walls and that's not built into the cost. I. have a question as to whether we're talking about Class A space. I believe that the period of time that this comes on the market it will be on at a range that puts it directly in Class B and not Class A. So the proposals are talking about one thing, I think the market is going to dictate another when we get it there. It appears to me that the time lines set forth in the proposals are far too short be- cause it will take at least three months to put together the bonding requirements and usually another 12 to 18. mo the on top of that as a rehab time so we're talking about a or 22 year time limit, not the year or year and a half th t we've been talkina about. I have a question as to whether the developers can buy the Odd Fellows Building and sit on it and wait until the land value appreciates and then simply turn around and sell the la d, for which most of them have bid almost nothing for and capitalize on that as far as speculative financing. I'm no sure, and maybe Mr. Miller can answer this question for me they did do the debt coverage ratios but that varies very widely from industry.to industry and I'm interested on what is the normal debt ratio for the kind of analysis that we're looking at. I'd be interested in knowing if anyone ha come.up with firm bond commitments based upon the pro- posal, and I'd also be interested in knowing what charac- teristics distinguish Class A from Class B from Class C of ice space, because I think that's a key issue in the Odd Fellows Building. I'd like to end.my remarks by saying I'm no of the bulldozer mentality, I don't think. I've lived in the West Washington district prior to the time that it wa fashionable and stuck it out through a period of time wh n everyone was leaving and not moving in. I've been in- vo ved with Tippecanoe and enjoy living next door to that -22