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South Bend Redevelopment Commission <br /> Regular Meeting—November 29, 2012 <br /> 6. NEW BUSINESS <br /> C. Airport Economic Development Area <br /> 2) continued... <br /> create at least 13 new jobs related to the technology or biotechnology areas, and make new <br /> capital investment of at least $2.6 million in the Airport Economic Development Area. <br /> Since the disposition process is expected to run into late January or early February of 2013, a <br /> Temporary Use Agreement is being proposed so F Cubed may take possession and use of the <br /> equipment while the disposition process is being completed. F Cubed has an immediate need <br /> for the equipment and is the anticipated end user in accordance with the MOU. Staff <br /> recommends approval of Resolution No. 3109. <br /> Mr. Inks noted that this is the first time that the Redevelopment Commission has disposed of <br /> personal property. The requirements under state law seem to be less clear in this area than <br /> for real property. <br /> Mr. Randy Rompola of Faegre Baker Daniels noted that the disposition process of personal <br /> property is not specified in the statutes. There is a process in the general Indiana code for <br /> personal property disposition, but it says specifically it doesn't apply to Redevelopment <br /> Commissions. In the powers that are generally available to Redevelopment Commissions it <br /> says Commissions may acquire and dispose of personal property, but there is never any <br /> indication later in the statute of how to dispose of personal property. What Faegre Baker <br /> Daniels is suggesting is that the Commission follow as nearly as possible the process for real <br /> property disposition, which is specified very clearly in this statute. Faegre Baker Daniels <br /> has been involved in a number of projects that have had both personal and real property. <br /> They've always combined the two and used the real property disposition process. This is one <br /> of those unique cases where it is only personal property. <br /> Mr. Varner asked the reason Redevelopment needed to acquire the personal property. Mr. <br /> Rompola responded that the State of Illinois can simply write a check to a company which <br /> can use the cash. Indiana statute doesn't allow that. They allow you to invest in local public <br /> improvements. Equipment can be classified as a public improvement because it provides the <br /> economic development opportunity for that area. As such, the Commission doesn't have the <br /> ability to hand the money over to the private company for them to buy the equipment. The <br /> Commission must acquire the equipment and use the disposition process to convey it to the <br /> company. <br /> Mr. Downes noted that the MOU states that if F Cubed does not live up to its agreement to <br /> create jobs and make the capital investment to move into Ignition Park, there is a clawback <br /> requirement that they would have to repay the Redevelopment Commission 150% of the <br /> equipment cost. Mr. Downes asked if that requirement is included in Resolution No. 3109. <br /> Mr. Rompola responded that it is not. All that Resolution No. 3109 does is offer the <br /> equipment for disposition. At some point F Cubed will come back into the picture. That <br /> 11 <br />