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zuth Bend Redevelopment Commission <br />gular Meeting - February 18, 1994 <br />6. NEW BUSINESSJCont.) <br />j. continued... <br />Industrial Park. In December 1992, the <br />Commission set the Fair Re -use Value of <br />this parcel at $7,934 per acre. <br />The partnership proposes to purchase a <br />six -acre portion of Lot 18C for a total <br />price of $108,000, or $18,000 per acre. <br />Although the proposed price is more than <br />twice the Fair Re -use Value, the <br />proposal also requires the City to provde <br />adequate infrastructure (road, sewer, and <br />water) to the site no later than June 30, <br />1994. The Department estimates the <br />cost of construction to be approximately <br />�' $300,000. However, the construction of <br />this road will open an additional 32.5 <br />acres of industrial land for development <br />(27.5 acres of which is owned by <br />Redevelopment). The Commission is <br />obligated to pay Coldwell Banker (as <br />listing agent) a 10% sales commission if <br />the sale of the parcel commences. 5 % <br />will go to Holladay Corporation as the <br />initiating broker. <br />The proposed project is to construct a <br />100,000 square foot building to be leased <br />to a single tenant for <br />warehouse /distribution use. The tenant <br />has not yet been named. However, the <br />partnership is working with a national <br />company currently looking at the South <br />Bend area to locate their midwestern <br />distribution hub. The partnership <br />proposal also includes a 5 -year option to <br />purchase an additional 5.5. acres to the <br />-16- <br />