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HomeMy WebLinkAbout01-21-05 Redevelopment Commission MinutesG SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING January 21, 2005 10:00 a.m. 227 West Jefferson Boulevard Presiding: Karl King, Vice President South Bend, Indiana 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Mr. Karl King, Vice President Mr. Robert W. Hunt, Secretary Mr. Hardie Blake, Jr. Ms. Marcia Jones, President Mr. Greg Downes Ms. Cheryl Greene, Esq. Redevelopment Staff: Mr. Don Inks, Director Mr. Bill Schalliol, Economic Development Specialist Ms. Pamela Morris, Recording Secretary Mr. Robert Mathia, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Ms. Jennifer Hughes, Economic Development Specialist Others Present: Ms. Pam Paluszewski, Legal Dept. Mr. Jim Frick, South Gateway Association Ms. Jamie Angelo, Fox 28 News Mr. Mike Fisher, Fox 28 News Mr. Joseph Molnar Ms. Sharon Molnar Mr. Doug Hedington Ms. Stef Hedington Mr. David Molnar 2. APPROVAL OF MINUTES A. Commission approval requested of Minutes of the Regular Meeting of January 7, 2005. Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved the Minutes of the Regular Meeting of January 7, 2005. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF JANUARY 7, 2005. , I 3. APPROVAL OF CLAIMS submitted January 21 2005 for approval. Redevelopment Commission Claims y pp FUND 305 SBCDA 2003 BOND Walsh & Kelly, Inc. $ 70,256.74 First Source Bank / HG Christman Construction Co. 42,114.00 HG Christman Construction Co. 238,143.00 Walker Parking Consultants 14,773.99 Masterpiece Creations at Morris PAC 405.20 Kone Inc. 22,759.20 324 FUND - AIRPORT General Fund - Telephone 110.11 DLZ 8,145.00 414 SAMPLE -EWING Ken Herceg & Associates 6,440.40 DHA 1,407.50 420 SBCDA Meridian Title Corporation 75.00 CB Richard Ellis South Bend 282.50 Ampco System Parking 2,526.59 Lehman & Lehman 450.00 SBD Reprographics 112.13 Department of Public Parks 152.00 City of South Bend 1,287.28 428 FUND AIRPORT 2003 BOND Meridian Title 117,949.32 Troyer Group, Inc. 4,612.25 Reith Riley 351,967.23 $ 883,969.44 2 Oliver Rd. & Nimtz Pkwy Reconstruction 3. APPROVAL OF CLAIMS (CONT.) 4w� q Mr. Hunt inquired about the HG Christman Construction Company claim in the amount of $238,143. Mr. Inks responded that the claim is related to the Studebaker Museum. Upon a motion by Mr. Hunt, seconded by Mr. Blake and COMMISSION APPROVED THE CLAIMS unanimously carried, the Commission approved the SUBMITTED JANUARY 21, 2005, AND ORDERED CHECKS TO BE RELEASED. Claims submitted January 21, 2005, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. THERE WERE NO COMMUNICATIONS 5. OLD BUSINESS There was no Old Business. THERE WAS NO OLD BUSINESS 6. NEW BUSINESS A. Public Hearing (1) Public Hearing on Resolution No. 2120 amending the South Side Development Area Development Plan. Mr. Schalliol reported that Resolution No. 2120 adds one parcel to the South Side Development Area Development Plan acquisition list. The property is owned by Joseph and Sharon Molnar and is located at 201 West Ireland Road. The Tax Key No. is 23 -1025 -1358. Acquisition of the parcel is necessary to facilitate infrastructure improvements within the Erskine Hills Shopping District consistent with the development plan for the area. Mr. Inks advised the public hearing file is complete and requested the following be entered into the record: (1) Copy of the Notice of Hearing; (2) Copy of Resolution 3. NEW BUSINESS (CONT.) A. Public Hearings (1) continued... No. 2120; (3) Affidavits from the Tri- County News and South Bend Tribune that the Notice of Public Hearing was published in those newspapers on January 7, 2005; (4) A statement from Mr. Schalliol that on January 7, 2005, copies of the Notice of Public Hearing were sent to the affected property owners and registered neighborhood associations; and (5) As of 10:00 a.m. this morning, no written remonstrances were received. Ms. Greene noted that an amendment to a development plan is governed by IC 36 -7 -14- 17.5. Under this section of the Code, the Commission is not required to have evidence or make findings that were required for the establishment of the original development area. However, the Commission is required to make the following findings before approving the amendment: (1) The amendment is reasonable and appropriate when considered in relation to the original resolution, plan and purposes of I.C. 36 -7 -14, and (2) The resolution or plan, with the proposed amendment, conforms to the comprehensive plan for the City. Resolution No. 2120 includes this language and accordingly, adoption by the Commission would satisfy the requirements of the statute. In addition, the Commission is required to consider any written remonstrances that are filed during the filing period specified in the notice. c 6. NEW BUSINESS (CONT.) A. Public Hearings (1) continued... Mr. King opened the Public Hearing and asked if there was anyone from the public who wished to speak for or against Resolution No. 2120. There being no one who wished to speak regarding Resolution No. 2120, Mr. King closed the Public Hearing for whatever action the Commission wished to take. (2) Commission approval requested for Resolution No. 2120. Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2120 amending the South Side Development Area Development Plan. B. South Bend Central Development Area (1) Commission approval requested for Bid Specifications & Design Considerations for property located in the South Bend Central. Development Area (237 North Michigan Street (former Hotel LaSalle & adjacent parking area) Mr. Mathia reported that the Bid Specifications & Design Considerations are for the disposition of the former Hotel LaSalle located at 237 N. Michigan Street and the adjacent parking area. The property is located on the southwest corner of Michigan and LaSalle Streets in the South Bend Central Development Area. Following is a summary of the bid specifications. 19 PUBLIC HEARING ON RESOLUTION NO. 2120 AMENDING THE SOUTH SIDE DEVELOPMENT AREA DEVELOPMENT PLAN. COMMISSION APPROVED RESOLUTION NO. 2120 AMENDING THE SOUTH SIDE DEVELOPMENT AREA DEVELOPMENT PLAN. 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... 1) All offers must meet the minimum price of $400,500. 2) The site purchase must include all 0.75 acres being bid. 3) The purpose of the proposed project is to preserve the Hotel LaSalle Building by returning it to a viable economic use. Bids will be accepted only from organizations with demonstrated financial and managerial capacity to successfully carry out a project of the size contemplated. 4) The general description of the project shall describe any public improvements or investments that will be requested of the City of South Bend and/or the South Bend Redevelopment Commission. 5) The pedestrian friendly attributes of the building's first floor along Michigan and LaSalle Streets shall be maintained. 5) Any outside alterations to the building must be in keeping with the design of the building and be sensitive to the height, layout and building material of the building and the surrounding area. 6) All architectural plans and proposed alterations to both the interior and exterior of the building must be reviewed and approved by the staff of the Redevelopment Commission. 7) Bidders are required to present their proposals at the February 18, 2005, Regular Meeting of the Redevelopment Commission. 8) All other provisions of the South Bend Central Development Plan must be met. Staff recommends approval. G6 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved a request for Bid Specifications & Design Considerations for property located in the South Bend Central Development Area (237 North Michigan Street (former Hotel LaSalle & adjacent parking area) (2) Commission approval requested for Resolution No. 2123 approving the fair market value of property in the South Bend Central Development Area (237 North Michigan Street (former Hotel LaSalle & adjacent parking area) Mr. Mathia reported that Resolution No. 2123 sets the fair market value for the property commonly referred to as the former Hotel LaSalle located at 237 North Michigan Street and the adjacent parking area. The property is located on the southwest corner of Michigan and LaSalle Streets and it is within the South Bend Central Development Area. The area of the property is approximately 0.75 acres. The fair market value has been determined by the average of two written appraisals prepared by independent, qualified real estate appraisers. Staff has reviewed the appraisals and recommends approval of Resolution No. 2123. COMMISSION APPROVED A REQUEST FOR BID SPECIFICATIONS & DESIGN CONSIDERATIONS FOR PROPERTY LOCATED IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (237 NORTH MICHIGAN STREET (FORMER HOTEL LASALLE & ADJACENT PARKING AREA) Upon a motion by Mr. Hunt, seconded by COMMISSION APPROVED RESOLUTION No. 2123 Mr. Blake and unanimously carried, the APPROVING THE FAIR MARKET VALUE OF Commission approved Resolution No. 2123 pp ro PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (237 NORTH MICHIGAN approving the fair market value of property STREET (FORMER HOTEL LASALLE & ADJACENT in the South Bend Central Development Area PARKING AREA) (237 North Michigan Street (former Hotel LaSalle & adjacent parking area) 7 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) Commission authorization requested to publish Notice For Disposition of Property with publication dates of January 28, 2005 and February 4, 2005 and receipt of bids at 10:00 a.m. on February 18, 2005. (237 North Michigan Street (former Hotel LaSalle & adjacent parking area) Mr. Mathia reported that staff is requesting Commission approval to publish the required legal notifications for disposition of property located in the South Bend Central Development Area in the South Bend Tribune and the Tri- County News. The property, commonly known as the former Hotel LaSalle and the adjacent parking area, is located at 237 North Michigan Street. The notices are to be published on January 28 and February 4, 2005. Bids will be publicly opened and read aloud at 10:00 a.m., February 18, 2005. Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission authorized a request to publish Notice For Disposition of Property with publication dates of January 28, 2005 and February 4, 2005 and receipt of bids at 10:00 a.m. on February 18, 2005. (237 North Michigan Street (former Hotel LaSalle & adjacent parking area) (4) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Surveyor services at 237 North Michigan Street, former Hotel LaSalle) Mr. Mathia reported that staff solicited a proposal from Danch, Harper & Associates 8 COMMISSION AUTHORIZED A REQUEST TO PUBLISH NOTICE FOR DISPOSITION OF PROPERTY WITH PUBLICATION DATES OF JANUARY 28, 2005 AND FEBRUARY 4, 2005 AND RECEIPT OF BIDS AT 10:00 A.M. ON FEBRUARY 18, 2005. (237 NORTH MICHIGAN STREET (FORMER HOTEL LASALLE & ADJACENT PARKING AREA) 6. NEW BUSINESS (CONT.) South Bend Central Development B. S Area p (4) continued... to update an ALTA survey for the former Hotel LaSalle located at 237 North Michigan Street. The amount of the proposal is $1,350. The updated survey is necessary in preparation for property disposition. Danch,Harner prepared the last survey on the property December 24, 2002 when DTSB acquired it. There have been no material or physical changes to the property; however, legal requirements mandate the survey be updated. Because Danch, Harper is familiar with the property and has files from the last survey, staff requested a proposal from only that firm. Staff recommends accepting the proposal from Danch, Harper & Associates and requests funding up to $1,600 to cover the cost of the survey update plus any contingencies. Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved the request for professional services in the South Bend Central Development Area and authorized staff to retain Danch, Harper & Associates based on the scope of services and fee proposed. (5) Commission approval requested for Resolution No. 2126 approving the transfer of real property to the South Bend Community School Corporation Board of Trustees (215 South St. Joseph Street, commonly known as the Century Building). Ms. Greene reported that Resolution No. 2126 is related to the School Corporation Relocation Project. On November 19, 2004, G 9 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN DANCH, HARNER & ASSOCIATES BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (5) continued... the Commission and the School Corporation entered into an amended and restated agreement. Resolution No. 2126 is consistent with the terms of that agreement and provides for the transfer of title to the Century Building, which is currently vested in the Redevelopment Commission. Approval of Resolution 2126 authorizes transfer of the property from the Commission to the School Corporation Board of Trustees who are by statute entrusted with the control and custody of School Corporation property. This property transfer is consistent with the terms of the November 19, 2004 Agreement and will allow the relocation Project to proceed as previously approved. By State statute, the Commission is authorized to transfer the property to another governmental entity by adopting a matching resolution with the School Board of Trustees. It is anticipated that the School Corporation will adopt a matching resolution at its meeting of February 7, 2005. Resolution No. 2126 authorizes transfer of title to the property to the School Corporation Board of Trustees, authorizes legal counsel to prepare documents necessary for the transfer, including the deed; and authorizes the President and the Secretary or Vice President of the Commission to attest to those documents. Mr. Hunt inquired if there has been a satisfactory resolution regarding the forgiveness of taxes. Ms. Greene replied that the tax issue has been resolved. All of the preliminaries that were necessary to be completed prior to the 10 6. NEW BUSINESS (CONT.) IQ, B. South Bend Central Development Area (5) continued... transfer taking place have been completed. Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2126 approving the transfer of real property to the South Bend Community School Corporation Board of Trustees (215 South St. Joseph Street, commonly known as the Century Building). (6) Commission approval requested for Resolution No. 2127 accepting the transfer of real property from the City of South Bend, Indiana (112 S. St. Louis Street) Mr. Schalliol reported that the property located at 112 S. St. Louis was purchased last year by the City. The property was not in a development area at the time of purchase and was not on an acquisition list. The property was purchased with the anticipation of bringing it into the redevelopment district at a later date. The property has been put into the South Bend Central Development Area and added to the acquisition list. The City is now transferring the property to the Commission. Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2127 accepting the transfer of real property from the City of South Bend, Indiana (112 S. St. Louis Street) C, 11 COMMISSION APPROVED RESOLUTION NO. 2126 APPROVING THE TRANSFER OF REAL PROPERTY TO THE SOUTH BEND COMMUNITY SCHOOL CORPORATION BOARD OF TRUSTEES (215 SOUTH ST. JOSEPH STREET, COMMONLY KNOWN AS THE CENTURY BUILDING). COMMISSION APPROVED RESOLUTION NO. 2127 ACCEPTING THE TRANSFER OF REAL PROPERTY FROM THE CITY OF SOUTH BEND, INDIANA (112 S. ST. LOUIS STREET) 6. NEW BUSINESS (CONT.) C. Sample -Ewing Development Area (1) Re- filing of Resolution No. 2119 amending the Sample -Ewing Development Area Development Plan and setting a public hearing on Resolution No. 2119 for Friday, February 4, 2005, 10:00 a.m. Mr. Laurent reported that Resolution No. 2119 adds one property to the Sample - Ewing Development Area Development Plan and sets a public hearing for February 4, 2005. Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission accepted for filing Resolution No. 2119 and set a public hearing on Resolution No. 2119 for 10:00 a.m., Friday, February 4, 2005 at a Regular Meeting of the Redevelopment Commission. (2) Commission approval requested for proposal for professional services in the Sample -Ewing Development Area. (Surveyor services, 1115 South Michigan Street) Mr. Schalliol reported that a proposal in the amount of $500 was received from Danch, Harper & Associates to perform a disposition survey on the South Michigan Street development site. The property is located immediately north of Real Services. The disposition survey will complete the packet and the property will be available for bid. Staff recommends accepting the proposal from Danch, Harper & Associates. Upon a motion by Mr.Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved the request for professional services in the Sample -Ewing 12 COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 2119 AND SET A PUBLIC HEARING ON RESOLUTION No. 2119 FOR 10:00 A.M., FRIDAY, FEBRUARY 4, 2005 AT A REGULAR MEETING OF THE REDEVELOPMENT COMMISSION. COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN DANCH, HARNER & ASSOCIATES BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. 6. NEW BUSINESS (CONT.) 1 C. Sample-Ewing Development e g Area p (2) continued... Development Area and authorized staff to retain Danch, Harper & Associates based on the scope of services and fee proposed. D. Airport Economic Development Area (1) Commission approval requested for Resolution No. 2125 adopting certain findings related to the disposition of property located in the Airport Economic Development Area (3950 William Richardson Court;Toll Road Industrial Park, Lot 2A) Mr. Schalliol reported that 3950 William Richardson Court, also described as Lot 2A in the Toll Road Industrial Park is has been owned by the Redevelopment Commission for several years. It was advertised properly through the bid process and for the last ten years there have been no formal proposals submitted to purchase or develop the property. A proposal has now been received from Majority Builders, Inc. They are proposing to acquire the 4.13 acre parcel for an amount of $52,000. The property, as it exists presently, is only about half developable. It is an uneven parcel with severe declining elevation changes throughout the site and as such, it prevents the site from being completely developed. Majority Builders is currently the developer of a project along Portage Avenue immediately east of the Commission's property. Majority is working on a two phase commercial project that will, when complete, have approximately 40,000 to 45,000 sq. ft. of new commercial space. The C - 13 6. NEW BUSINESS (CONT.) Economic Development D. Airport Area p (1) continued... properties being developed by Majority are adjacent and both are challenged with site issues that are the reverse of Lot 2A's challenges. Specifically, instead of being declining elevation issues as in Lot 2A, there are increase issues on the commercial project site. What Majority Builders proposes to do is to develop the commercial site that they are currently working on, and move the materials from that site to Lot 2A. The result would be to level both sites thus creating fully developable properties. Mr. Schalliol commented that he spoke with the Commission's legal counsel about this project and Ms. Greene has prepared findings of facts that basically encapsulates the agreement. Ms. Greene advised that, as Mr. Schalliol explained, Lot 2A has already been through the public bidding process required by law. When the Commission sells property there is a procedure that must be followed pursuant to IC 36- 7- 14 -22. Under this section of the Code, once the bidding process has been completed and thirty days have passed, the Commission is free to conduct private negotiation on the sale of property. This property is well beyond the thirty day restriction. This particular transaction, as proposed, is unique, so the findings before the Commission today in Resolution 2125 capture the unusual circumstances of this transaction. Ms. Greene further advised that it is her legal opinion that the transaction is not outside the scope of the Commission's powers and 14 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) continued... duties. Specifically, the Commission has the duty within Indiana Code 36.7.14.11 to promote the use of land in a manner that best serves the interests of the unit and its inhabitants, and to also make findings with respect to the Commission's activities completing the redevelopment obligations. The findings contained in Resolution No. 2125 include details of the unusual physical characteristics of Lot 2A, and also reasoning as to how the property, if sold to Majority for development, will be utilized in a manner that is consistent with the development plan for the area, as well as the comprehensive plan for the City. The findings also state that transfer of the property to Majority, as proposed, will serve the interests of the community best from the standpoint of human and economic welfare. Resolution No. 2125 also authorizes legal counsel to complete the documentation necessary to effect this transaction and authorizes officers of the Commission to sign any necessary paperwork related to the transaction, as long as it is consistent with the findings that the Commission makes today by the adoption of Resolution No. 2125. Mr. Hunt asked if by adopting Resolution No. 2125 the Commission will be setting a precedent for any future transaction. Ms. Greene responded no. The intent of Resolution No. 2125 is to ensure that the transaction is specific to Lot 2A which has unusual characteristics and unusual circumstances. The transaction contemplated at today's meeting will allow this property to be utilized in a manner that would facilitate 15 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) continued... not just development of Lot 2A, but also facilitate further development within the City of South Bend in an adjacent area due to unique circumstances. Upon a motion by Hunt, seconded by COMMISSION APPROVED RESOLUTION No. 2125 Mr. Blake and unanimously carried, the ADOPTING CERTAIN FINDINGS RELATED TO THE Commission approved Resolution No. 2125 pp ro DISPOSITION OF PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA adopting certain findings related to the (3950 WILLIAM RICHARDSON COURT,TOLL disposition of property located in the Airport ROAD INDUSTRIAL PARK, LOT 2A) Economic Development Area (3950 William Richardson Court,Toll Road Industrial Park, Lot 2A) E. South Bend Medical Services District There was no business in the South Bend Medical THERE WAS NO BUSINESS IN THE SOUTH BEND Services District. MEDICAL SERVICES DISTRICT. F. West Washington- Chapin Development Area There was no business in the West Washington- THERE WAS NO BUSINESS IN THE WEST Chapin Development Area. WASHINGTON- CHAPIN DEVELOPMENT AREA. G. South Side Development Area (1) Commission approval requested for Resolution No. 2121 related to acquisition of property in the South Side Development Area by eminent domain. (201 West Ireland Road) Mr. Schalliol reported that Resolution No. 2121 sets the acquisition price for this property and authorizes the sending of a purchase offer with the right of eminent domain. The subject parcel was added to the South Side Development Area Development Plan acquisition list by Resolution No. 2120 C; 16 6. NEW BUSINESS (CONT.) ment Area Development G. South Side p (1) continued... earlier in today's meeting. The proposed acquisition property, located at 201 West Ireland Road, currently has a single family structure located on the parcel. The acquisition of the parcel is necessary to facilitate streetscape and corridor improvements within the Erskine Hills Shopping District. The acquisition of this property is imperative and development of the property is consistent with many of the goals and objectives detailed in the South Side Development Area Development Plan. Ms. Greene noted that the Commission's authority to acquire property in a redevelopment area is governed by Indiana Code 36.7.14.19. Where it is necessary to acquire property and negotiations to purchase the property are unsuccessful, the Commission is authorized by IC 36- 7 -14 -20 to exercise the power of eminent domain. Resolution No. 2121presented before the Commission today is consistent with the Commission's legal obligations under the Redevelopment Act. Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2121 related to acquisition of property in the South Side Development Area by eminent domain. (201 West Ireland Road) (2) Commission approval requested for Letter of Engagement from Crowe Chizek and Company, LLC to perform financial advisory services related to the proposed Erskine Village Development Project. 17 COMMISSION APPROVED RESOLUTION NO. 2121 RELATED TO ACQUISITION OF PROPERTY IN THE SOUTH SIDE DEVELOPMENT AREA BY EMINENT DOMAIN. (201 WEST IRELAND ROAD) 6. NEW BUSINESS (CONT.) G. South Side Development Area (2) continued... Mr. King requested that Item 6.G.(2) be tabled until the Regular Meeting of February 4, 2005. There were no objections by the Commission. Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission tabled Item 6.G.(2) until the Regular Meeting of February 4, 2005. H. Northeast Neighborhood Development Area (1) Commission approval requested for Agreement for Sale and Purchase of Real Estate in the Northeast Neighborhood Development Area (1340 South Bend Avenue; Macri Development, Inc.) Mr. Laurent reported that property owned by Macri Development, Inc. at 1340 South Bend Avenue was determined to be needed for the development of Fredrickson Park in the Northeast Neighborhood Development Area. The property was added to the Redevelopment Commission's acquisition list on May 7, 2004 via Resolution No. 2054. The Commission then authorized an offering price of $687,500 for the property via Resolution No. 2078 on August 6, 2004. Mr. Macri counter offered on September 9, 2004 with the amount of $860,350, which included Lot 8 in the Oliver Industrial Park. Mr. Macri also requested that he be allowed to lease the property to his tenant, Sears Roebuck & Co. for sixteen months or through February 28, 2006. Following discussions and negotiations of this counter offer, it was determined that a better fit IL 18 COMMISSION TABLED ITEM 6.G.(2) UNTIL THE REGULAR MEETING OF FEBRUARY 4, 2005. 6. NEW BUSINESS (CONT.) H. Northeast Neighborhood Development Area (1) continued... would be provided for this transaction if the Oliver Industrial Park land were removed from the equation. Mr. Macri and all City parties agreed, and the Agreement before the Commission today includes those terms. In place of Lot 8, valued at $94,350, $100,000 was added to the purchase price bringing it to $866,000. This property is deemed vital to the redevelopment of Fredrickson Park, and the timetable for acquisition (with the Commission taking possession on March 8, 2006) will allow for the goals of the Commission's development partners to be met. The Agreement has terms that include closing on the property on January 21, 2005, the Commission taking possession of the property on March 8, 2006, placing into escrow a portion of the purchase price to cover all taxes to be paid between the date of closing and the date of possession, and also a liquidated damages clause of $1,100 per day that the seller occupies the property after the date of possession. Ms. Greene noted that the Agreement is consistent with the Commission's obligations under the Redevelopment Act found at IC 36 -7 -14. The Redevelopment Act imposes upon the Commission the right to exceed the original offering price only when specifically authorized by the Commission or ordered by a court in condemnation proceeding. By approving the Agreement for Purchase and Sale of Real Estate as presented the Commission would be taken action consistent with the statute by specifically authorizing a price that exceeds the original 19 6. NEW BUSINESS (CONT.) H. Northeast Neighborhood Development Area (1) continued... offering price. Mr. Laurent noted that there is an outstanding proposal for Lot 8 in the Oliver Industrial Park related to this transaction. Mr. Hunt asked about the release of Lot 8 in the Oliver Industrial Park. Ms. Greene responded that communication had taken place with the attorney representing the seller in this transaction. Counsel relayed to him a request that his client release any right to the Oliver Plow Court property and that request was agreeable. If the Commission authorizes the preparation of additional documentation for the transaction, Counsel will have it executed at the closing of January 21, 2005. Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved a request for Agreement for Sale and Purchase of Real Estate in the Northeast Neighborhood Development Area (1340 South Bend Avenue; Macri Development, Inc.) Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission authorized Counsel to prepare additional documentation related to the Agreement for Purchase and Sale of Real Estate pertaining to the release of any claim on the Oliver Plow Works property. Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission authorized Counsel to execute IL 20 COMMISSION APPROVED A REQUEST FOR AGREEMENT FOR SALE AND PURCHASE OF REAL ESTATE IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA (1340 SOUTH BEND AVENUE; MACRI DEVELOPMENT, INC.) COMMISSION AUTHORIZED COUNSEL TO PREPARE ADDITIONAL DOCUMENTATION RELATED TO THE AGREEMENT FOR PURCHASE AND SALE OF REAL ESTATE PERTAINING TO THE RELEASE OF ANY CLAIM ON THE OLIVER PLOW WORKS PROPERTY. COMMISSION AUTHORIZED COUNSEL TO EXECUTE ADDITIONAL DOCUMENTS PRESENTED AND RELATED TO THE AGREEMENT FOR PURCHASE AND SALE OF REAL ESTATE AT THE JANUARY 21, 2005 PROPERTY CLOSING. 6. NEW BUSINESS (CONT.) ILH. Northeast Neighborhood Development Area (1) continued... additional documents presented and related to the Agreement for Purchase and Sale of Real Estate at the January 21, 2005 property closing. I. Other There was no Other business. 7. PROGRESS REPORTS Mr. Inks advised that Bob Mathia has been employed in the Economic Development Department for the past four years, covering the downtown area. Bob has taken the open department position of Assistant Director, primarily handling Business Assistance Programs, Loan Programs and Tax Abatements. The responsibilities of LO; 7. PROGRESS REPORTS (CONT.) Downtown Project Manager are being filled by Jennifer Hughes who will be exiting the Northeast Neighborhood Development Area. Staff is currently looking to fill the now open position in the Northeast Neighborhood Development Area. The Commission congratulated both Mr. Mathia and Ms. Hughes on their new positions. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is scheduled for Friday, February 4, 2005 at 10:00 a.m. 21 THERE WAS NO OTHER BUSINESS. PROGRESS REPORTS NEXT COMMISSION MEETING A, G 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Hunt made a motion that the meeting be adjourned. Mr. Blake seconded the motion and the meeting was adjourned at 10:29 a.m. Dona d E. Inks, Director 22 ADJOURNMENT 6Z4� 4P, Marcia I. Jones, Presi&Wt