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REDEVELO MENT COMMISSION MEETING MINUTES NOVEMBER 4, 1977 PAGE FOUR 4. COMMUNICATIONS (CONT'D) c) A peal of the adoption of Resolution Nos. 540 and 542 by Edith H wley and Angela Berg. Mr. prownell reported that this matter has been given to our atto Heys to handle this'..law'suit'. Mr, imtz indicated that there is no further action necessary to this as it has already been referred to legal staff for proceeding. 5. OLD a) A r Mr. that that Chan has for tion the will Mr. brie city basi are: to t for wdul we a that been is a squa when come . a sq lett appri cred cont: press that potei This earns INESS eement between the redevelopers and the Redevelopment Commission arding the purchase of project land in the future. rownell indicated that this agreement has now been to HUD and this draft was approved with one minor change; that of wording, instead of South Bend Redevelopment Department it will be ed to City of South Bend Redevelopment Department. Mr. Butler ade that change and has furnished the contract to the investors heir signature. Commission approval is requested and authoriza- for the president and secretary to sign it today. As soon as nvestors sign and give us proper security Commission signature be necessary. 3utler indicated he would go over the provisions of the contract Fly. The parties to the agreement are the Commission, the civil and the investors. The agreement is broken down into three parts;.the first part the obligations of the investors which to submit a bid for the real estate in question subject only ie following provisions; that redevelopment offers the property >ublic bid by April 1 of 1979 and that the minumum bid price I not exceed,$450,00Oi00 Dollars.. - - -- This does not mean that °e locked into an appraisal of less than $450,000.00, it means if it is more than that they need not bid. This figure has discussed with Real Estate Research and they feel that this reasonable figure for the property in question, about 150,000 •e feet at about $3.00 a square foot. As a frame of reference talking about a large area of property the appraised value down. For example, Block 6 where the property sold for $.91 Lare foot. The next obligation of the investors is to submit a .r of credit payable to the Department of Redevelopment in the it of $45,000.00. This figure was arrived at as it is 10% of the oximate appraised value of the land in question. This letter of .t will provide that if a bid is not submitted as required in the -act they will lose that $45,000.00. At the time that they ant their bid they would be presenting a bid bond of 10% assuming the bid is $450,000.00. This has not been required: by any other .tial investor when they expressed an interest in the property. amount is appropriate since HUD was asking for some kind of !st money.