12-12-13 Redevelopment Commission Minutes

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South Bend Redevelopment Commission Regular Meeting — Thursday, December 12, 2013 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (6) continued... In 2005, when the hotel was taken through the disposition process, the average appraised value was $400,500. Lowering the AV to be more in line with its market value will assist the proposed developer in their property tax abatement, since the abatement is based on the property's current AV. Additionally, similar to the process we followed for the Hall of Fame tax appeal, Rick Pitts, an MAI Certified Indiana Appraiser, has provided a proposal to provide a Value In Use appraisal for the Hotel. This type of appraisal will be needed for the property tax appeal if our initial request to lower the AV is denied. Also included is a per hour charge to prepare for and appear before the Appeals Board. This proposal will be utilized only if needed. Value In Use is defined by the Real Property Assessment Manual as: "The value of property for a specified use. The concept holds value to be inherent in property itself, that is, the value is based on the ability of the asset to produce revenue or utility through ownership. The value a specific property has for a specific use." Since the appeal would be for the 2013 pay 2014 taxes, the appraisal will value the property as of its March 1, 2013 assessment date. Staff requests approval to move forward with this tax appeal, and if necessary, to utilize the Professional Services Agreement from R.E. Pitts in the amount of $4,300 for the appraisal, and $165 / hour to prepare and appear before the Appeals Board. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission authorized staff to appeal the assessment of the Hotel LaSalle and approved the proposed for Professional Services Agreement related to the LaSalle Hotel for the scope of services and fee proposed. (7) Development Agreement by and between the South Bend Redevelopment Commission and Great Lakes Capital Development LLC. (LaSalle Hotel) Mr. Fielding noted that the Historic Hotel LaSalle is an important part of South Bend's cultural heritage and one of South Bend's few remaining physical legacies. As the city has identified in its Central Area Development plan and the specific Request for Proposals for the hotel, the redevelopment of this historic structure will play a significant role in the on- going revitalization of downtown South Bend. In April 2013 the Department of Community Investment (DCI), acting on behalf of the Redevelopment Commission, released a Request for Proposals for the renovation of the