2 Minutes 11/29/12 meeting - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Meeting—November 29, 2012 management services. Our annual holding costs for the site have been estimated at$650,000. Almost$200,000 of that would be property taxes. There will be other significant costs related to security, maintenance and utilities. While there is no rent in the first two years of this particular lease, these holding costs will be avoided, except during the interim period in early 2013. The average appraised values for the site were$1,967,000 to purchase and$1.63 per sq. ft. to lease. The option price of$1,300,000 represents a savings for Curtis Products of $617,000 or just under one year of holding costs for the Commission. Mr. Varner asked what Curtis Products does. Mr. David Heckaman responded that they fabricate steel tubing and other things. The tubing they sell to the agricultural market. Mr. Davis asked if there had been any conversations about filling the building that Curtis Products will be leaving. Mr. Inks responded that during the negotiations, staff recognized that those buildings would need to be addressed. That is why we came up with the two years of no rent, giving Curtis Products an opportunity to market those properties for lease or sale. Certainly as businesses approach us about space in the community,we are making them aware of those buildings to the extent that we supply potential tenants to lease or buy. At this point Curtis Products is looking to market those. Staff requests approval of the lease terms and authorization to prepare a lease with an option to purchase. Mr. David Heckaman noted that they have not started to market the property yet,but they have had a couple of people look at it over the past year, since they've been in negotiations about the Bosch building. There seems to be a little bit of interest. They have four or five buildings, which could be marketed individually. He thought it doubtful that anyone would want the whole campus. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried,the Commission approved the Letter of Intent from Curtis Products to lease the Bosch site and authorized staff to proceed with preparation of a lease with an option to purchase. 2) Resolution No. 3109 regarding the disposition of certain personal property and matters related thereto. (F Cubed) Mr. Inks noted that Resolution No. 3109 authorizes the disposition process for the equipment purchased in accordance with the terms of the Memorandum of Understanding(MOU) with F Cubed, approved by the Redevelopment Commission on November 8, 2012. F Cubed is one of the first companies to graduate from Innovation Park. They would like to locate their growing business in Ignition Park when there is a multi-tenant facility available. In the interim they are locating in the former St. Joseph High School. As part of our efforts to retain the company in South Bend, and eventually locate them in Ignition Park, the MOU commits the Redevelopment Commission to acquiring certain scientific equipment and providing an opportunity for F Cubed to lease that equipment. The cost of the equipment as established by the Commission at the November 8 meeting is not to exceed $138,000. The disposition process will include the advertising of an Offering Sheet which sets the price based on the not-to-exceed amount that was established by the Commission of$138,000. It 8