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Community & Economic Development
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1200 County -City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 ❑ Phone 574/235 -9371 ❑ Fax 574/235-
9021
To: RedevelopmenttCCommission
From: Ann KolatL/�J���
Subject: Land Sold to Raitt Corporation in Oliver Industrial Park
Date: April 8, 2011
In 2007 the Commission sold a 4.5 acre site in Oliver Industrial Park to Raitt Corporation. Raitt had
until 9 /7/10 to construct a 50,000 s.f. flex -space industrial building on the property. Raitt has not
constructed the building within the allowed time frame. I talked to Erick Guerra of Raitt in October
2010 and asked what was happening with the property. He said that they were not able to move
forward with construction at this time but were still working on obtaining leases for the property. He
said that he would like to request an extension. Mr. Guerra also informed me that he has moved to
Boca Raton Florida but he planned to be in South Bend every month or so to conduct business.
On January 3, 2011 I received a letter dated 12/14/10 requesting a two year extension to our
agreement. After the first of the year I requested a meeting with Mr. Guerra to discuss their request.
To date he has not responded to this request. The staff has discussed the request and it is our opinion
that we should not agree to the extension but rather enforce the parts of the Contract that allow us to
get the property back. The process for getting the land back requires a Notice of Default letter from
our attorney (following Commission authorization) giving Raitt 30 days to transfer title back to the
Commission. The Commission would need to pay Raitt the purchase price of $114,750 plus pay
closing costs of approximately $1,000. If Raitt did not deed the property back to the Commission
within the 30 day time period, our attorney would go to court to get the property back.
Staff requests the Commission grant authority to the staff to begin the default process and authorize
Don Inks to sign any necessary documents.
Please contact me at 235 -9374 or akolata&southbendin.gov if you have any questions.
December 14, 2010
Community & Economic Development
227 West Jefferson Boulevard
South Bend, IN 46601
Attn: Ann Kolata & Redevelopment Commission
RE: 812 Oliver Plow Court South Bend, IN 46601
Ann,
Please accept this letter as a response to your inquiry regarding Raitt Corporation's intent
toward new building construction in the Oliver Plow Industrial Park at 812 Oliver Plow Court. While we
are excited to see the Oliver Plow Industrial Park begin to make positive strides toward redevelopment,
unfortunately we have been unable to secure a suitable tenant to warrant breaking ground with new
construction. OPUS (Oliver Plow Universal Site), our development plan, calls for at least one tenant to
assume roughly 12,500 square feet of the facility for us to condone the use of private dollars. It is our
belief that due to recent and current economic conditions, we will need an additional (24) twenty -four
months to foster relationships with local, regional, and national companies looking to relocate or
expand operations.
We are aware that our three year contract to construct a new building has expired, and
respectfully request to extend the current agreement. In the meantime, we will continue to search for
the appropriate company using our past approach of; feasibility studies, in -depth company research,
internet marketing, and analyzing current industry trends. Also, we plan to broaden our approach by;
working closely with a national marketing firm, attending light industrial trade shows to forge good
working relationships, and viral marketing.
815 West Sample Street • South Bend, Indiana 46601 • (574) 287 -8022 Office
www.raittcorp.com
Raitt Corporation is interested in bringing a dynamic tenant mixture to the Oliver Industrial Park,
and we envision OPUS as a complimentary segue to the new Ignition Park. With Raitt Corporation's
continued efforts and the support of the City of South Bend, we believe we can still make this
development a success.
If you would like to speak with me further regarding this letter, please feel free to contact me at
your convenience.
Sincerely,
Joshua J. Nemeth
815 West Sample Street • South Bend, Indiana 46601 • (574) 287 -8022 Office
www.raittcorp.com
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Real property tax abatement available
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lasonry.buildfngs are preferred throughout the Industrial Park.
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Zone
Land Use
• Light Industrial
• Warehouse
• Distribution
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Property Cost
' 8fl acres. ,
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• $20,500 /acre:
Interior parcels larger than five acres
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• $23,000 /acre:
Interior parcels of five acres or less
• $25,500 /acre:
I ss.a«es
Parcels adjacent to Chapin Street
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Incentives
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• Tax Abatement
Design Criteria
- Designated Economic Impact Area
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�]IIVp
rdreeis rro, sr, ana srs are
conceptual and for visioning purposes only.
Real property tax abatement available
O
lasonry.buildfngs are preferred throughout the Industrial Park.
W
F
CO
a
U
uld reflect the architectural elements and
to- Chapnn Streetan zst be of masonry
• Urban Ent
State i
- zon
Zone