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HomeMy WebLinkAboutSM 03-14-88March 14, 1S 4:00 p.m. Presiding Of SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING icer: Mr. F. Jay Nimtz President 1. ROLL CALL Members Present Members sent: Legal Counsel: Redevelo ent Staff: News Media: Others: 2. NEW BUSI a. Comm Amen for in t FA 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Mr. F. Jay Nimtz, President Mr. Roman J. Piasecki, Secretary Mr. Sandy Combs, Assistant Secretary Mr. Michael Donoho Ms. Paula N. Auburn, Vice President Ms. Carolyn Pfotenhauer Ms. Ann Kolata, Acting Executive Director Mrs. Cheryl Phipps, Office Manager Ms. Gretchen Matthews Mr. James Wensits, South Bend Tribune Ms. Lynn Weber, Can - American Realty Corp. Mr. Kent Richey, Leonard, Street & Deinard Mr. Robert Fuerst, Dane Bosworth Ms. Eugenia Schwartz, Nickle & Piasecki Mr. Steve Luecke, South Bend Common Council Mr. Jon R. Hunt, Assistant to the Mayor ion approval requested for Second nt to Contract for Sale of Land vate Development for Parcel El -1 ie South Bend Central Develo Mrs. Kolata noted that the Second Amen ent to Contract for Sale of Land changes the following things: (1) assigns all rights belonging to Raintree Point Associates, Ltd. to Can -Am South Bend Ltd. Partnership; (2) the developer (Can Am) assumes all of these rights; and (3) the project schedule. The new schedule calls for the developer to take possession of the land on or before Sept r 15, 1988; to come before the Desidn Review Committee no later than -1- South Bend Special Me elopment Conrnission - March 14, 1988 2. NEW BUSINESS (Cont.) a. uommnuea... May 19, 1988; submit evidence of binding comitments for construction financing by July 15, 1988. This agreement is conditioned on action to be taken by the Econ mic Development Commission and South Bend Commn Council later today and also on satisfying our legal counsel that all legal requirements are in place. Lynn Weber, Vice President of Can-American Realty Corp., described their experience in this field and the project they are proposing for the parcel. Can -Am is a full service deve opment company whose principals have been in the development business for over 20 years. They are primarily developers of multi-family housing. They have three offices in the U.S. and one in Winnepeg, Canada. Their underwriter, Dane Bosworth, introduced them to the Raintree Point package approximately two weeks ago. In the intervening two weeks, Ms. Weber visited South Bend to evaluate the market and the site. They felt this was an exceptional opportunity and began tryiiig to work out a purchase agreement with Mr. Hutchcraft of Raintree Point Associates. The combined Can -Am com ies have a net worth in excess of $20,000,000. They have done appr ximately $180,000,000 of strictly resi ential apartment units and another $100 000,000 of hotel financing. Although they have not had enough time to fully develop a proposal for the site, they will still commit to 200 or more units. They do quality buildings and like smaller buildings with a townhouse feel They envision garden type apartments which may be four stories in some levels. They would probably use a combination of siding and brick exterior. -2- South Bend edevelopment Commission Special Mee ing - March 14, 1988 2. NEW BUS� SS (Cont.) a. uon-ginuea... Ms. Weber indicated that they expect to be able to supply a firm financial commitment within 120 days. Mr. Nimtz expressed appreciation for the intensive work done over the last several days toward salvaging this project. Mr. Donoho asked if they will try to use local contractors. Ms. Weber responded that she had noticed in the contract that it called for "a best effort ". She could not romise that a local contractor would be used but stated that local contractors usually can provide the best bid and control of on -site work. However, a lend is biggest requirement is that the contractor be fully bondable. Mrs. Kolata noted that the "best faith effort" provision remains in the contract. Mr. Piasecki asked what the immediate plans were to proceed. Ms. Weber responded that the architect would come to South Bend next week to begin his work When he has some preliminary plan , they will begin looking for lenders. Mr. Wensits asked when they could expect to start construction. Ms. Weber responded that they would start construction by September 15 and construction would be complete appr ximately fifteen months later. Mr. Nimtz expressed appreciation that Can-Im is happy with the site. The Co ssion has resisted numerous inquiries to develop the site with conmercial development. Ms. Schwartz requested that any motion for approval of the Amendment would be made subject to approval by legal counsel. -3- South Bend R development Commission Special Meeting - March 14, 1988 2. NEW BUSI S (Cont.) a. Cont._nued .. . Upon a motion by Mr. Piasecki, seconded by Donoho and unanimously carried, the COHnussion approved the Second Amen ent to Contract for Sale of Land for Private Development for Parcel El -1 subj ct to review and any revision required by legal counsel, with the understanding that the intent of the proposal presently before the Commission be mintained. 3. NEXT C"ISSION MEETING 0 COMMISSION APPROVED THE SECOND AMENDMENT TO CONTRACT FOR SALE OF LAND FOR PRIVATE DEVELOPMENT FOR PARCEL El -1 The next egular Meeting of the Commission NEXT COMMISSION MEETING Wil l be F iday, March 25, 1988 at 10:00 a.m. There being no further business to come before ADJOURNMENT the Commission, Mr. Combs made a motion that the meeting be adjourned. Mr. Piasecki seconded the motion and the meeting was adjourned at 4:55 p.m. rJ Paula N. n, Vice President Ann E. Kolata, Acting Executive Director -4-