11/07/11 Board of Public Works Minutes

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CLAIMS REVIEW MEETING NOVEMBER 14, 2011 368 A Claims Review Meeting of the Board of Public Works was convened at 8:35 a.m, on Monday, November 14, 2011, by Board Member Donald Inks with interim Board Member Thomas Price present. Board President Gary Gilot and Board Member Carl Littrell were absent. City Attorney Chuck Leone was also present. ADOPT RESOLUTION NO. 76-2011 — AUTHORIZING THE INITIATION OF A PROCESS PURSUANT TO I.C. 36-1-11-4 TO SELL CERTAIN REAL PROPERTY OWNED BY THE CITY AND LOCATED AT 717 E. LASALLE AVENUE SOUTH BEND INDIANA Mr. Chuck Leone, City Attorney, stated this is the third attempt by the City to dispose of this property. The first attempt was to sell the property directly to St. Joseph High School in exchange for services to the City. The second attempt provided that any bidder must propose compatible land use with the high school. Mr. Leone stated that this third attempt is a generic disposal of land regulated by Indiana law. The City is proposing to auction the property for 90% of the average of two appraisals without attached terms or conditions. Mr. Leone noted that he has been in contact with the Plaintiffs in the case and they believe this process is in compliance with Judge Miller's ruling in this case. He stated the minimum bid has been set at $545,000.00; $200,000.00 more than the average of the two appraisals. Mr. Inks questioned if this auction will take place on the site. Mr. Leone stated he believes it can be done here with a licensed auctioneer. He stated he would like to find someone to come in and do it for a flat fee, not the 10%normally charged. He added the auctioneer will do a certification that the City has met all of the requirements of the law. Mr. Leone stated a Notice of Public Hearing will need to be published like before, so the actual auction will not take place for a couple of weeks. Mr. Leone stated he will submit to the court a motion seeking approval that the Resolution meets the Court's requirements and that the Plaintiff doesn't object to this process. Mr. Leone stated he believes the Judge will approve of this process. Mr. Price asked if there will be any pre- qualification of bidders for financial responsibility. Mr. Leone stated there wouldn't be. He noted if the bidder can't perform, we go back and take the next bidder. He added the property is to be sold to not only the highest but also the best bidder. In this instance, the best bidder will simply be one that can perform the transaction. Mr. Inks asked Mr. Leone if any bidder can bid for any use of the property. Mr. Leone confirmed that is the case. Mr. Leone noted that there are two items on the Common Council's agenda regarding this property that he will be asking be withdrawn or continued. The first item is an Ordinance related to the last attempt to sell the property. The other item is a rezoning request that he will ask to be tabled until the property has been auctioned off. Mr. Inks questioned if there is a date set for the auction. Mr. Leone noted the date is subject to the dates of publication of the Notice and will need to coincide with the Board of Works meeting schedule. Upon a motion made by Mr. Price, seconded by Mr. Inks and carried,the following Resolution was adopted by the Board of Public Works: RESOLUTION NO. 76-2011 A RESOLUTION OF THE BOARD OF PUBLIC WORKS OF THE CITY OF SOUTH BEND,INDIANA, AUTHORIZING THE INITIATION OF A PROCESS PURSUANT TO I.C. 36-1-11-4 TO SELL CERTAIN REAL PROPERTY OWNED BY THE CITY AND LOCATED AT 717 E. LaSALLE AVENUE, SOUTH BEND, INDIANA WHEREAS, the City of South Bend, Indiana, Board of Public Works (the "Board") has custody of and may maintain and dispose of all real property owned by the City of South Bend, Indiana(the "City") pursuant to I.C. 36-9-6-3; and WHEREAS, the City of South Bend, Indiana ("City") is the owner of certain real estate located at 717 East LaSalle Avenue, South Bend, Saint Joseph County Indiana, which is more particularly described in Exhibit "A" attached hereto and incorporated herein (the "Property"); and WHEREAS, the City has the power and authority, pursuant to the Indiana Home Rule Act, I.C. 36-1-3, to exercise all powers necessary or desirable in the conduct of its affairs, and further pursuant to I.C. 36-1-4-5 and I.C. 36-1-4-6 to acquire, use, improve, develop, maintain and dispose of interests in property; and WHEREAS, I.C. 36-1-11-4 provides for sale or transfer of real property by the City after the property has been appraised by two (2) appraisers; and