SOUTH BEND - The city's Common Council will face a $5.7 million question Monday.
Chicago-area hotelier Satish “Sunny” Gabhawala is prepared to buy
South Bend’s tallest building, the 25-story Chase Tower, out of
foreclosure, but he wants the city to chip in to support a renovation.
Gabhawala is promising to spend more than $19 million to acquire Chase
Tower and pay for a rehabilitation. He has set up a limited-liability
company, Care Hotels Indiana, for the project.
In return, the city would spend $5.7 million from reserves to buy a
99-year leasehold interest in the building’s parking garage. The
proceeds would be held in escrow and available for upgrades only after
Care Hotels spends at least $5.7 million of its own money on building
Gabhawala has an agreement with Huntington National Bank to acquire
the note for the property, which previously was owned by
Massachusetts-based Dillingham Hill Real Estate.
He has told city officials the bank could proceed with a public
auction of the building if they don’t complete the transaction by
Monday. Another possibility is the previous owner could file for
bankruptcy, which would further delay a sale.
Council faces big decision on Chase Tower
We've upgraded our reader commenting system. Learn more about the new features.
Los Angeles Times welcomes civil dialogue about our stories; you must register with the site to participate. We filter comments for language and adherence to our Terms of Service, but not for factual accuracy. By commenting, you agree to these legal terms. Please flag inappropriate comments.
Having technical problems? Check here for guidance.