Redevelopment Commission approves LaSalle Hotel redevelopment deal with $1.38 million incentive
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Summary
The Hammond Redevelopment Commission on Jan. 20 approved a development agreement with Hammond LaSalle LLC to convert the former LaSalle Hotel at 5266 Homan Ave. into 24 apartments and two ground-floor commercial spaces, and to provide a $1,380,000 incentive paid in milestones; the vote was 5-0.
The Hammond Redevelopment Commission on Jan. 20 approved a development agreement with Hammond LaSalle LLC to redevelop the former LaSalle Hotel at 5266 Homan Avenue into two ground-floor commercial spaces (one designated as a restaurant) and 24 one- and two-bedroom apartments.
Attorney Westland/Westlund summarized the agreement for commissioners, saying the developer must begin construction before June 1 and reach substantial completion by Dec. 31, 2027. As part of the deal the city agreed to provide a $1,380,000 incentive from the Technology Park Fund, to be paid in increments (25% upon issuance of a building permit, 50% upon completion of the apartments, and the balance when occupancy permits are issued). The city will also enter a shared-parking agreement using one of two HRC-owned lots (43 Russell Street or 33 Munich Court), and will finance the balance of the purchase price less earnest money via a forgivable note and mortgage that forgives 20% a year for five years. The RFP listed a purchase price of $277,500 with earnest money of $13,008.75.
Commissioner Tomich moved approval and Commissioner Shelton seconded. The commission voted unanimously, 5-0, to approve the development agreement; attorney Westland/Westlund said the developers already signed and the matter will go to the mayor for final approval.
The agreement packages public incentive dollars with shared parking and a staged forgiveness mortgage intended to support renovation of a downtown property into mixed-use housing and retail. The commission gave final local approval; the mayor’s office will complete the administrative step required by the agreement.
Provenance: commission presentation and motion to approve read by attorney Westland/Westlund; details given during the agenda item on the development agreement.
