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South Bend Redevelopment Commission <br />Regular Meeting –September 18, 2009 <br /> <br />6. NEW BUSINESS (CONT.) <br /> <br />C. Airport Economic Development Area <br /> <br />(2) continued… <br /> <br />liability. If this is a payment to TCU for <br />moving, he thinks we need to do a little more <br />research and get those numbers down. Mr. <br />Varner also noted that the lease is in default. <br />He wondered how you can make a 10-yr <br />extension when the lease is in default. He <br />thinks the city has done enough to preserve <br />those parts. What began with the best of <br />intentions has blown up in our face. He <br />believes our paying TCU $686,000 is <br />excessive. <br /> <br />Mr. Inks responded that to the Commission <br />the lease has a $1200 annual value. To the <br />Lessee, though, should they need to move <br />from the building, they would need to pay <br />market rate anyplace else. Our goal is to try <br />and make this building available for <br />demolition early in 2010. It would be <br />combined in a demolition package with <br />Underground Pipe and Valve to try to <br />achieve some economies. The Ignition Park <br />project cannot proceed with development <br />while either of those two buildings remains <br />on the site. The vibrations from those <br />demolitions would be disruptive to any high <br />tech businesses in Ignition Park. In an effort <br />to vacate that building, it is necessary to have <br />those parts moved. That means someone will <br />have to pay market rate instead of the highly <br />subsidized rate that is being provided today. <br />The economic value of that is accurate in <br />terms of $965,000. Our efforts all along <br />have been to try and preserve the legacy of <br />Studebaker, the auto parts that were <br />available, and this would be the final effort of <br /> 15 <br /> <br />