2 Minutes March 27, 2014 - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Meeting—March 27, 2014 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (1) continued... Mr. Varner asked whether the Commission's having had title to the property put the Commission permanently in the chain of liability. Ms. Kolata responded that it does. However,if you get some certification from the state that you have met the cleanup goals, that gives you a higher level of confidence that there is nothing more there. It doesn't give you a guarantee that something else won't come up. Part of our agreement with Union Station Technologies is that we will be responsible for any environmental cleanup. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried,the Commission accepted the proposal from Weaver Boos Consultants for services related to a Comfort Letter, Indiana Brownfield Program Letter and Associated Phase I Environmental Site Assessments and Phase II Soil and Groundwater Sampling(Union Station Technology Center project, and Millennium Environmental) (2) Development Agreement for multi-tenant building at Ignition Park. Mr. Fielding noted that in the summer of 2013 the Department of Community Investment released a request for proposals(RFP)on the Commission's behalf for a multi-tenant facility to be built at Ignition Park. In October staff recommended the Commission move forward with development by Great Lakes Capital. Since then we've had increased interest in Ignition Park. The proposed single building has now morphed into a campus of multi-tenant buildings. Staff is presenting today a Development Agreement for the larger project, a minimum of three buildings. The city's investment will be 15%or a maximum of$900,000 per building. The developer commits to a minimum of 40,000 sft per building with an approximate value of$6,000,000 per building. The original four acres listed in the RFP will be sold for$1.00 with the additional 9 acres being sold to the developer at$25,000 per acre. The purchase price will be paid upon completion of the first building as they move into more permanent financing. Mr. Fielding noted that the agreement includes clawback provisions based on the timing of that payment. Great Lakes Capital is also committed to an additional eleven acres north of this parcel. This includes an option for parcel 2. They are paying$1,000 per acre for that option. Then they have 60 months from completion of building one to take down that option or it will expire. Staff requests approval of the development agreement. Mr. Fielding noted that staff will be supporting tax abatement for buildings one and two. Tax abatement is not intended as an incentive to the developer,but to buy down the lease rate for tenants. 4