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HomeMy WebLinkAboutSM 02-26-79February � 10:30 A.M. Presiding 1. ROLL SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING S, 1979 fficer: F. Jay Nimtz, President 1200 County -City Bldg. 227 W. Jefferson Blvd. South Bend, IN. 46601 Members Present: Mr. F. Jay Nimtz, President Mr. Lloyd E. Robinson, Sr., Vice President Mr. Robert J. Cira, Assistant Secretary Ms. Paula N. Auburn, Member Absent: Mr. A. Peter Donaldson, Secretary Legal Pounsel: Kevin J. Butler News M dia: Mr. Mr. Ms. Mr. Mr. Guests: Mr. Community Development Sta f: Ms. Ms. Mrs Dave Anderson, Reporter, WNDU -TV J. Scott Brink, Photographer, WNDU -TV Jeanne Derbeck, Reporter, South Bend Tribune Larry Ford, Reporter, WSJV-TV Jim Skwarcan, Photographer, WSJV -TV John Kagel, Exec. Director, Downtown Council Shirley McCoy, Labor Standards. Officer Barbara Radican, Labor Standards Monitor Theresa Ellett, Labor Standards Monitor LPA Staff: Mr. Carl Ellison, Director Mr. Timothy K. Eckerle, Assistant Director Ms. Jan Beach, Real Estate Officer Mr. Kevin Horton, Planner Mrs. Jane Zimmerman, Exec. Secretary The Chair announced that, pursuant to the legal notice heretofore published in the South Bend Tribune on the Sth day of February 1979, and in the Tri- County News, this is a special meeting of the South Bend Redevelopment Commission called for this date at 10:30 A.M. for the purpose of opening bids for the disposition and redevelopment of parcels 4 -1, 4 -30, and 4 -31, within the boundaries of IN. R -66. Chair: Mr� Ellison, were any bids received? Mr. Ellison: Mr. Chairman, there were no bids received. South Bend Redevelopment Commission Special Meeting - February 26, 1979 The Chair ecognized that since there were no bids received, the Redevelopment Commission under the rules and regulations of HUD and under the laws of the State of Indiana may proceed to negotiate with interested parties. The Chair noted that any development detail except land costs may be negotiated within the next 90 days. After this period, land costs may also be negotiated. FLOOR DISCUSSIONS Mr. Dave A�derson: Mr. Ellison, does the fact that you did not receive any bids concern yo at this time, and why were no bids received? Mr. Elliso : The fact that we did not receive bids does not concern the department in any way. There are a variety of reasons why we did not receive bids at this point. The only developer known to the Commission is the group that is interested in developing a hotel, a bank and public uses connected with the project. At this point, the architecture is only about 40% completed. Consequently, exact configur- ation of t e buildings has not been settled. Since the buildings are likely to be situated o a portion of one or more parcels that are offered; land will likely be disposed o by surveyed description. It is estimated that project design will be at the poi t where that can happen within the next 90 days. The full designs are to be comp eted by June 30, and the project is expected to go for bids in July. Actual construction is expected to begin in August. It will be necessary that the Commission dispose of the land by exact survey description so that the Commission can approve the development and also assure that it is built. as promised. Those particular details are not available at this time. Consequently, there are no proposals. Mr. Dave derson: Does that mean the minimum price is still $3.00 a sq. ft., which was the ap raised value of this land? Mr. Elliso : That is correct. Within the next 90 days we may negotiate a number of items, but we cannot negotiate land cost. Mr. Larry �ord: Mr. Ellison, what kind of items would be negotiable? Mr. Ellison: Well, from the standpoint of total project, because it is a mixed -use development, it is a little different from the normal kind of renewal development in which we simply sell land. Among the side issues are questions like: parking arrange- ments (there are approximately 700 parking spaces below ground), which accommodate the hotel's desire for a guarantee of so many spaces to be available to it; likewise the bank in connection with leasable office space they are going to have above the bank wishes so many spaces to be made available. There are easement agreements which have to be negotiated since the project will have to be serviced. Finally, there are questions of timetable since when the Commission accepts a project, it will do so with a rather specific timetable that must be adhered to. These and similar side issues have to be negotiated. Ms. Jeanne Perbeck may not buy up all you are saying? In short then, what you are saying is that the First Bank project the land, but leave some to the City to build a garage, is that what E South Ben Redevelopment Commission Special Me eting - February 26, 1979 FLOOR DISCOSSIONS (continued) Mr. Elliso : Yes, it is likely that the bank and the hotel will actually buy the land Mat sits directly under their buildings. Whatever land they buy, they will in to n lease air rights to the City to construct the below grade garage within the project. They will then continue their air rights and build their building oi top of the City's platform, which is actually the top of the City's below grad garage. Ms. Jeanne Derbeck: What would have happened, say if you received another unexpected bid? Mr. Elliso : We would have considered it, of course! When the Commission considers a project, we take into account more than just the simple offer to purchase land. We take in o account impact of the proposed project and the community benefits it offers. The fact t at a project may come in with a bid, which is higher than the reuse value of land wo 1d not necessarily mean that the Commission would judge that to be the highest bet use to the land, and the best project to go with it. Mr. John 4gel: With the UDAG grant you have a certain commitment here don't you? Mr. Elliso : The Commission does not have the authority to exclude anybody from future development on that site. If some other development were selected for that site, yes, that would effect the UDAG grant. Certainly the Commission has the power to do that if it so desires. But, the likelihood of a project of-a better scale occurring is remote. I don't really expect any competition. Mr. John 4gel: You could run the risk of losing the UDAG, is that correct? Mr. Elliso : My advice to the Commission is that if there are competing projects in the hopper, public interest probably suggests that the UDAG project is the best one for the site. So, I would certainly recommend it to the Commission. NEXT COMMI §SION MEETING The next regularly scheduled meeting will be held on March 2, 1979, at 10 :00 A.M. There bein no further business to come before the Commission, Mr. Robinson made a motion t at the meeting be adjourned, seconded by Mr. Cira, and the motion was unanimousl carried. The meeting was adjourned at 10 :53 A.M. z, Prftident Carl Ellison, Director