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)uth Bend Redevelopment Commission <br />'Regular Meeting - March 18, 1994 <br />6. NEW BUSINESS (Cont.) <br />e. continued... <br />Toll Road Industrial Park. BHD Properties <br />is a limited liability holding company for <br />Dearborn Crane & Engineering Co. of <br />Mishawaka. Dearborn, in the area since <br />1955, produces overhead bridge cranes for <br />material handling purposes and currently <br />employs 25 people full time. <br />Lot 11 is a 3.72 acre parcel located on Ralph <br />Jones Court. This is one of four <br />Redevelopment -owned lots in the Toll Road <br />Industrial Park. In December 1992, the <br />Commission set the Fair Re -use Value of this <br />parcel at $54,800 (or $14,700 /acre). The lot <br />is currently heavily wooded with large (12" <br />diameter) trees. The Fair Re -use Value of the <br />site was reduced by nearly $12,000 from the <br />actual market value to account for the <br />increased development costs of site clearance. <br />The proposal calls for 240 equal monthly <br />payments of $301.77 over the 20 -year lease <br />term. The total amount of lease payments <br />will equal $72,425.89. The payments are <br />based on a 6.65 % interest rate over the lease <br />term. The proposal also requires that <br />Dearborn would not be penalized for pre- <br />payment. Due to bond requirements, the <br />Commission cannot transfer title of property <br />unless a certain amount (bond defeasance <br />amount) is received from the land sale. The <br />proposed $40,000 for Lot 11 will not satisfy <br />the bond defeasance amount. The Lease <br />agreement between the Commission and <br />Dearborn can allow for pre - payment; <br />p however, actual title to the parcel could not <br />J -7- <br />