12-12-13 Redevelopment Commission Minutes

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South Bend Redevelopment Commission Regular Meeting — Thursday, December 12, 2013 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) continued... Mr. Downes noted that he believes the Commission's funding of DTSB for these services is one of the best investments the Commission has made. They do a fabulous job. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Agreement for Services by and between the City of South Bend, Department of Redevelopment, acting by and through the South Bend Redevelopment Commission and Downtown South Bend, Inc. (Downtown Beautification). (4) Resolution No. 3185 appointing authorized representatives to approve and execute documents related to the LaSalle Hotel on behalf of the City of South Bend, Indiana, Department of Redevelopment. ( Mavcon Properties) Mr. Relos noted that Resolution No. 3185 approves the release the Purchase Agreement with Mavcon Properties, which was approved on June 14, 2011, and recorded on June 27, 2011. That Agreement was for the possible purchase and rehabilitation of the Hotel LaSalle, and allowed Mavcon two (2) 180 -day inspection periods to hire architectural, engineering, and environmental consultants, as well as to put together a funding package utilizing Historic and New Market Tax Credits. On July 12, 2012, an additional 60 -day extension was granted. According to the Agreement, Mavcon deposited $4,000 for its two 180 - day inspection periods, which per the Agreement were to be non - refundable if Mavcon did not move forward after the first inspection period. Because both parties worked diligently during and after the inspection periods, the return of the $4,000 deposit was approved on December 4, 2012. Because the Agreement was recorded, it must now be released. Resolution No. 3185 allows staff to move forward with a Release of Commercial Purchase Agreement, which when signed by both parties, will be recorded and will release the original Agreement. Staff requests approval of Resolution No. 3185. Upon a motion by Mr. Inks, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3185 appointing authorized representatives to approve and execute documents related to the LaSalle Hotel on behalf of the City of South Bend, Indiana, Department of Redevelopment. ( Mavcon Properties) (5) Authorization to appeal taxes for 237 N. Michigan St. (LaSalle Hotel) Mr. Relos noted that this staff wishes to appeal the property taxes for the Hotel La Salle. Though the hotel does not currently pay taxes because of its government ownership, it does have a current assessed value (AV) of $807,100 ($33,400 land + $773,700 improvements).