RM 11-06-92 - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Meeting - November 6, 1992 6. NEW BUSINESS (Cont.) d. Commission approval requested for Resolution No. 1114 approving the Fair Reuse Value of Property in the Airport Economic Development Area (Parcel 18B). Mrs. Kolata explained items 6.d., 6.e., and 6.f. together since they are related. The Redevelopment Authority purchased this property in the Toll Road Industrial Park with a lease /purchase bond. Therefore, the land cannot be sold outright except under a couple of very specific circumstances. The property is being offered for purchase under two options: a) a 20 -yr lease /purchase with a minimum annual lease rental of $4,583.35 with title to be conveyed for $1.00 at the termination of 20 years; or b) a prepaid lease /purchase for a minimum total price of $45,000 paid at closing with title conveyed at closing, but held in escrow for a period of 20 years, then released to the successful bidder. Mrs. Kolata noted that the bid specifications for the project are: 1) construction must start within one year; 2) all proposals must conform to the covenants for the Toll Road Industrial Park; 3) building plans, landscaping, on -site parking, roadways, etc., must be approved in advance by the Design Review Committee and the Industrial Foundation; 4) the functions of the property with regard to storm water, retention and detention will not be reduced or impeded; and 5) development of the principal structure must be completed within two years of the award. Mrs. Kolata noted that bond counsel has determined it is possible to convey land as a pre -paid lease /purchase. The feasibility depends on the ratio between the amount of the bond used to purchase property in relation to the amount of debt service the pre -paid purchase price represents. We have not yet been able to determine how much of the bond was used to purchase this parcel, because the -7-