RM 11-21-75 - Laserfiche WebLink

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8. COMMENTS AND /OR QUESTIONS FROM PUBLIC p ailed now. Do you have any prospective bidders for this land? M . Brownell advised the reason is that under the HUD regulations w cannot sell any property unless it has been appraised within 1 months. Ms. Derbeck inquired if the last appraisal was in 1969, and was confirmed by Mr. Brownell to be January 1, 1969. Ms. Derbeck added that the 18 months period then had elapsed in 1970. Mr. Brownell said that regulation was not in effect in 1970; he does not know the exact date it came out. He is requesting the updated appraisal as people are approaching us about the possibility of developing land. They want to know how much it costs and we can't a swer their question without a new appraisal. President Nimtz said we can't give an answer until we give an up -to -date figure. Mrs. Janet S. Allen asked how we could have sold Block 6 then? M . Brownell advised we had Block 6 reappraised. Various questions were raised on Block 6 and Section 8 Housing, with lengthly discussions following, summarized briefly: One question asked by Mrs. Allen on how the price was arrived at for the two acres at $108,900, when the 16 acres cost $651,111. Mr. Brownell advised that actually what happened was that the bidder (St. Joseph River Bend Development Corporation) in making t eir bids bid more than the price which was required. Our price w s $640,000 plus and they bid $651,000 plus, which is higher than o r minimum bid price - -that is the first thing. Second, in bidding ot it, they elected to take a stage take -down contract, which means the developer splits the land into parcels and they set a date when they want to buy it, or before that date, but not later than that date. They set a date when they will complete their construction op it. They also set the price that they will pay us on it. The total of those prices has to total up to the $651,000 plus. What price they set on each parcel is a matter of discretion and is- o e that we approve when we accept the bid. They set a price on each parcel that they selected. We had the entire parcel re- appraised iii less than 18 months before they bought it. The point is that the 1 nd has to be re- appraised within 18 months of the contract of sale, a d that contract has already been entered into. Commission Legal Counsel, Mr. Butler, stated the St. Joseph River Bend Development Corporation will not be bidding on Section 8 Housing, so they are giving non - exclusive options to all contractors who are going-to bid. So the successful bidder, if there is a successful bidder for that site, will pay that much. Mr. Brownell stated that a 1 the bidderswho originally bid under Section 8 Housing were re- jected in St. Joseph County and it is being rebid, and the bids are due on December 15, 1975, with HUD. This has been advertised a d the documents are being sent out now. The St. Jospeh River Bend Development Corporation is agreeing that they will give a non- exclusive o tion which we will have to agree to, and approve, to anyone who w nts to bid under Section 8 Housing on this particular parcel of land. - 10 -