08-15-13 Redevelopment Commission Minutes

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South Bend Redevelopment Commission Regular Meeting — Thursday, August 15, 2013 6. NEW BUSINESS (CONT.) G. Ratification of Services Contracts Ms. Schey asked if the Commission would table ratification of 1509 Kendall until its next meeting, will this have any detrimental effects to the negotiations. Mr. Meteiver responded that the mortgage company has been difficult to work with from the beginning of this acquisition. A delay at this point might cause them to put this on the back burner. If the Commission defers this contract to the next Redevelopment Commission meeting, we will be getting close to the final deadline again which could create additional problems. If anything, these changes will facilitate the acquisition of the property rather than delay it. He recommended not tabling the item. Ms. Schey asked to table the ratification of this address due to the family (owner) filing a complaint with the Council. There are some issues that still need to be addressed. She clarified that we will be up against the deadline, but will not be past it if we table? Mr. Meteiver responded that that would depend on how quickly the bank could turn things around again. If we defer action here, that may be a signal that the bank can defer action from their end and we will be late for the purchase agreement's deadline. As a courtesy to the family who did come before Council on Monday, Ms. Schey asked that the item be tabled until the next meeting. Mr. Meteiver asked what the family's concerns are. Ms. Schey responded that they have a number of concerns. Mr. Relos noted that staff could hear at any moment that with these changes to the agreement, the agreement has been approved. This acquisition should have been closed some time ago. The mortgage processor has been very difficult, and actually, the family has an attorney that Mr. Relos is working through who is working with the mortgage processor. Mr. Downes asked if the Council has any authority over this transaction. Mr. Relos responded that it does not. The authority falls to the Commission and it's been approved by the Redevelopment Commission previously. Ms. Schey noted that as a member of the Council that answers to the people of South Bend, there is a responsibility when citizens come before us. Regardless of one's opinion whether TIF dollars are, in fact, the money of the tax payers the money that is spent is public money. The residents have asked for further clarification on this matter. Therefore, Ms. Schey asked again that ratification of the purchase agreement for 1509 Kendall be tabled until the next Commission meeting. Mr. Varner clarified that the Commission essentially had no contract after the purchase agreement expired. Mr. Meteiver responded that either party to a contract can terminate the contract based on the closing not taking place within 30 days. Neither party took that step, so we still have a valid contract. 14