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9. DOWNTOWN REDEVELOPMENT (Cont'd
<br />First of all, a prospective redevelopE,r`of property in a. given renewal
<br />pro ect expresses interest to the Redevelopment.Commission. For example,
<br />we had interest expressed when we. received the letter this morning_.on
<br />Block 6, which is for the proposed development of Block 6. The next step
<br />theri is for the Commission and staff to explain to the prospective developers
<br />if they need such explanations, the various procedures and requirements for
<br />the disposition. Under the HUD requirements and state statutes, then the
<br />prospective redeveloper puts together its development plans.`'
<br />When the plans are basically fin<<lized; they are discussed with the Depart-
<br />ment of Redevelopment staff, and,, in some cases, with the Commission. All
<br />the land in a renewal area is designated for specific use. If the prospec-
<br />tiv redeveloper plans require a land -use change, then the Commission will
<br />consider that, and, if they approve it, or concur with it, then they will
<br />submit the proposed land -use change. A public hearing must come before
<br />the Commission first for public acceptance and /or remonstrance;' then the
<br />proposed land -use change must be submitted to the Area Plan Commission
<br />for approval; then to the South Bend Common Council; and finally to MACOG
<br />for their acceptance or rejection. This procedure generally takes between
<br />30 to 60 days, depending upon when the various meetings are scheduled. If
<br />the land -use change is approved by the various bodies, then we obtain a re-
<br />use appraisal on the property, and that is another 15 to 30 days, and then
<br />we submit the information relative to the land -use change and the reuse
<br />appraisal to HUD by Proclaimer. The Commission will then authorize bidding
<br />and the notice is published. The prospective developer who triggered the
<br />bidding, and other developers who are interested, will submit bids and
<br />accompanying those bids are the Indiana 96 -A forms, which, in effect, are
<br />financial statements. They will submit a non- collussion affidavit, and other
<br />documents including the bid security, and again in Associates' case it was
<br />a L tter of Credit. I think, in Allen Schrager's case, in a couple of in-
<br />stances, a Letter of Credit was used as the bid security. Other alternatives
<br />are bid bond through an insurance company, or cash bond. The Commission then
<br />'receives' the bid. They submit the 96 -A form to HUD and they submit the
<br />bid proposals to staff for review and recommendation. If HUD approves the
<br />prospective redevelopers, those who submitted bids, the staff then completes
<br />their review and will make a recommendation to the Commission. The Commission
<br />then acts on the recommendation, approving or awarding the bid to a single
<br />bidder, or rejecting all bids if they feel that none of the bids are appro-
<br />pri te.
<br />Now, with respect to the Associates' situation specifically, again; the
<br />staff never actually made a: recommendation to the Commission, basically
<br />because the planned redevelopment by Associates was changed. The concept
<br />was changed, almost immediately, and so the Commission never acted upon
<br />it. Some of the items that mitigated against awarding or approving the
<br />Associates bid was their interest in acquiring Parcel No. 4 -66; which is
<br />jus to the east of the Odd Fellows Building, and the service alley to
<br />the the east of that, and another service alley west of ''the hole."
<br />Whei
<br />the
<br />nex,
<br />the bid is awarded, at that.point, the bid bond becomes binding and
<br />edevelopE,r can't back out without forfeiting that security. The
<br />steps, basically, are the execution of the contract for private re-
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