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South Bend Redevelopment Commission <br />Regular Meeting - September 16, 1994 <br />6. NEW BUSINESS (Cont.) <br />g. continued... <br />$9,248 to be the performance guarantee for <br />the higher amount. <br />Mr. Perri noted that the land purchased six <br />months ago and developed for Tech Data <br />was purchased at the price of $18,000 per <br />acre. The reason $20,000 per acre was set <br />as the price for the option was because the <br />option was good for five years and it was <br />assumed that the land values would increase <br />through that period. Since Holladay is <br />ready to exercise that option within six <br />months and the land values have not risen <br />yet, Mr. Perri thought that $18,000 per acre <br />was a fair price. Other recent land sales in <br />the area have been at $18,000 per acre. <br />Mrs. Kolata responded that the option was <br />part of the signed Contract for Sale of Land <br />for the original property and could not be <br />renegotiated. The Commission also took <br />some risk in agreeing to $20,000 per acre <br />because land values could far exceed that <br />price in five years. <br />Mr. Donoho noted that the land in question <br />has increased in value due to the <br />improvements put on the Holladay <br />Corporation's first site. Mr. Perri <br />responded that, in fact, the cost of <br />developing that parcel will be higher <br />because of the terrain. Other parcels near <br />this site have sold for under $18,000 per <br />acre because of those higher expected <br />development costs related to the terrain. <br />-12- <br />