09-11-14 Redevelopment Commission Minutes

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South Bend Redevelopment Commission Regular Meeting—September 11,2014 6. NEW BUSINESS B. Airport Economic Development Area (cont.) (4)Approval of Request to Advertise for Sale of Lot 1 of the Ardmore Trail Minor Subdivision Upon motion by Ms. Schey, seconded by Dr. Varner and unanimously carried the Commission approved the request to advertise for the sale of the property Lot 1 of the Ardmore Trail Minor Subdivision(parcels 018-2188-7089 and 018-2191-719202). (5) Resolution No. 3216 Approving the Fair Market Value of Property in the Airport Economic Development Area (Blackthorn Golf Course) Mr. Fielding made his presentation on 6B(5), 6B(6) and 6B(7)at the same time since they are all pieces of the Commission disposition process for the same property. At the March 26, 2014 meeting of the Commission staff requested permission to seek appraisals of the course. The bonds on the golf course were paid off in 2013 and the course was subsequently transferred from the Redevelopment Authority to the Redevelopment Commission. At the June 26, 2014 meeting the appraisals were presented to the Commission with the average of the 2 appraisals being$1,655,000. Staff has received quite a few • inquiries about the property. In offering the course for sale, our offering specifications will require the property remain a championship golf course and amenity for the community. The request before the Commission today is to continue the disposition process as required by State law in able to see what opportunities may exist for the course that would not require additional taxpayer support. The bids would be required to submit plans for any anticipated additional development on the property as well as a management plan for operations and management of the course. The intention is the course will always be managed by a professional, championship level management company. Ms. Schey noted there are sizable unmet capital needs for the course. She is disappointed that the minimum asking price is $1.6M and asked how much the City has invested in the course. Mr. Fielding replied it was just over$7.5M. He noted that some of the interest expressed thus far includes additional development on some of the side lots,while still maintaining the operation of the 18-hole course as it currently exists. He also reminded the Commission the bidders would be paying taxes on the course and any additional development which would help us to recoup the $7.5M in taxpayer expense. Ms. Schey clarified that once we sell the course all the City's requirements for management and upkeep of the property are gone. Mr. Fielding concurred except that City staff would need to ensure that the deed restrictions continue to be upheld,but that would be expected to only take some minor staff time, no further out-of-pocket expense. Ms. Schey stated it was a good thing. • 6