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HomeMy WebLinkAbout07-26-11 Plan outlines first infrastructure for Ignition Park 04 SOUTH � O U d W PEACE a 1865 Office of the Mayor NEWS RELEASE July 26,2011 5:15 p.m. Plan outlines first infrastructure for Ignition Park Contact: Mikki Dobski, Director of Communications&Special Projects, 235-5855 or 876-1564 Construction could begin before year's end on the first infrastructure in Ignition Park, preparing the technology park for new private investment even as demolition wraps up on the former Studebaker buildings that are part of the site's manufacturing heritage. The Redevelopment Commission today unanimously approved the implementation of Phase IA of an Ignition Park site design proposal drafted by BSA LifeStructures. This segment focuses on the southeast portion of Ignition Park, where Data Realty LLC is expected to break ground for construction of a world-class data center later this year. The new infrastructure will provide for the continuation of Stull Street from the east along with the creation of a connecting circle, which will enable the development of Scott Street north of the existing railroad tracks. The infrastructure improvements, including road and all utilities, are expected to cost $2,775,000 with additional design fees of $128,000. "It is imperative that Ignition Park be ready to do business," said Geri Hathaway, Ignition Park director, who is leading the strategic planning process for the technology park. "Infrastructure must be put in place at Ignition Park to support development. ... Committing to this Phase I infrastructure project will allow this Commission to sell land along these roads to developers or future owner/occupants. ..." A proposed timetable indicates that design work would be completed this fall, enabling the City to award construction contracts by year's end. In addition to the infrastructure improvements,the Redevelopment Commission also unanimously approved a contract to sell a five-acre site to Data Realty for $131,250 ($26,250 per acre). The private company will begin construction of a nearly $10-million, 54,000-square-foot facility, where it will employ 15 employees at opening. Total employment is expected to grow to 30 employees when the facility is expanded to 100,000 square feet. Data Realty has agreed not to seek any real property tax abatement. Projections of their annual taxes on the initial building are $273,000 per year. As part of the sales contract, the Redevelopment Commission will: • Bring a redundant power line to Ignition Park from the Kankakee substation at a cost of$100,000. • Support fapade enhancements to the Data Realty building to set an aesthetic tone for Ignition Park and meet the park's aesthetic requirements at a cost of$1.4 million, including a design fee of$77,500 for BSA Life Structures. • Provide a backup generator at a cost of$900,000 to Data Realty in exchange for 15 years worth of five data center equipment racks provided by Data Realty to the City and future Ignition Park tenants (valued at $1,080,000). "This is a very good deal for the City of South Bend," said Don Inks, director of economic development for the City of South Bend's Department of Community and Economic Development. "In many economic-development projects,there is a 15-to 20- year payback on bonds. In 3 to 8 years, we will have recouped 100 percent of our infrastructure investment in this site." Data Realty, a startup company based at Innovation Park at Notre Dame, announced in February that it will break ground this year for a Tier III data center serving small to mid- sized businesses in South Bend and throughout the Midwest. Construction may take about nine to 12 months. Ignition Park, together with the 12-acre Innovation Park next to the University of Notre Dame campus, constitutes South Bend's dual-site, state-certified technology park. Originally designated with 83 acres, Ignition Park is being expanded by City planners to incorporate as many as 140 acres of developable land near downtown South Bend. Located on the former grounds of legendary automaker Studebaker Corp., Ignition Park seeks to attract a variety of innovative companies, especially high-tech and research- based businesses. Some ventures under development at Innovation Park at Notre Dame are expected to put down roots and grow at Ignition Park. Ignition Park is generally bounded by Sample Street on the north, Lafayette Boulevard on the east, Indiana Avenue on the south and Chapin Street/Prairie Avenue on the west.