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.