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Home My WebLink AboutSM 08-18-88SOUTH BEND REDEVELOPMENT C g4ISSION SPECIAL MEETING August 18, 1988 1200 County -City Building 10:00 a.m. 227 W. Jefferson Boulevard Presiding Officer: Mr. F. Jay Nimtz South Bend, Indiana 46601 President Im:i��l�iil� Members went Mr. F. Jay Nimtz, President Mr. Roman J. Piasecki, Secretary Mr. Sandy Combs, Assistant Secretary Mr. Michael Donoho Members sent: Ms. Paula N. Auburn, Vice President Legal Coui isel: Ms. Jenny Pitts- Manier Redevelopment Staff: Mrs. Ann Kolata, Deputy Executive Director Mrs. Cheryl Phipps, Office Manager Rick Pitts News Medi : Ms. Mr. Ms. Others: Mr. Ms. Mr. Mr. Mr. 2. Coomissi n consideration and action on rarlYlaf i ran 1 ref +4-%� T) -1 or --- 1 - M-4 l A, -- Jeanne Derbeck, South Bend Tribune Thom Howell, U93 Sandy Matthys, WNDU Carter Wolf, Center City Associates Becky Neiswender, Center City Associates William Farabaugh, Attorney Fred K. Baer, Attorney Philip Welber Mrs. Kol to explained that some months ago the Commission was approached by a representative of one of the owners of the Robertson's Building about whether the Commission would consider a donation of the building. After meeting with representatives of the owners and discussion the issue with Commission in ExecutivE Session the Commission indicated that they would consider accepting the donation, but on the condition that the entire b ilding be conveyed. Over theuing months, there have been a series o meetings with representatives of -1- South Bend RedeN Special Meet' 2. Continual... elopment Commission - August 18, 1988 the owners as well as with Mark Meyers from St. Joseph Title Co. to make sure that, if the donation would take place, we would meet all of the requirements to have clear title to the property. Mr. F ugh, representing a number of the own , Mr. Baer, representing Bessina Realty, Mr. Welber, President of Bessina Realty were present in the meeting to answ any questions the Commissioners had. Mr. F ugh brought original, executed deeds from sixteen different owners, representing 87% of the ownership. Mr. Baer prepared to turn over stock in the name of Bessina Corporation for the remain:in 13% of the building. Mrs. Kol to continued to explain that if the Commission accepted the stock, it would be the intention to immediately dissolve the corporation. Mr. Nimt4 recognized Mr. Baer for any continents Ihe desired to make. Mr. Baer noted that the shareholders desired, for economic reasons, to transfer all the issues of outstanding shares of the stock to the City of South Bend. He indicated that the only asset of the corporation is this stock. Bessina Corporation has agreed to immediately dissolve the corporation, immediately deed the propr=rty out of the corporation to the City and, to that end, assure the City that it uould be saved any expense incurred as a result of the transfer. He pointed cut that the title company has approved all of the steps being taken at this meeting to convey to the City clear title to e property. Mr. Nimtzjrecognized Mr. Farabaugh for any continents lie desired to make. Mr. Farabaugh noted that he was happy to present tie deeds from the sixteen owners of the r fining portion of the property. -2- South Bend development Commission Special Mee ing - August 18, 1988 2. He expressed the sentiments of the owners, wishing e City well as they accept the Mr. Ninto then recognized Mr. Welber for any is he desired to make. Mr. We indicated that they are very pleased that the City may have some pertinen use for the building because it has hurt him and his family to see it lying i e. Mr. Nimt indicated that he was satisfied that all of the bases have been covered and called it a generous gift and act on behalf of the various individuals involved Mr. Pias +cki also stated that the gift was very gen ous. He asked what the donors foresaw that the Commission might do with the building. Mr. Welber responded that he had tcLIked to Mr. Jon Hunt and Mr. Rick Pitts about the prospects and was assured that whatever its use, it would serve to solidify the downtown. Mrs. Kol to responded that until now the staff had been looking at what it would take to accept the donation. Now the staff will begin to look at ways to address uhat we will do with the building. They will have some recommendations in the near future. She mentioned the studies done by LeRoy Troyer last fall on the structural integrity of the buil ing and the asbestos study done by Cole 2ssociates. The building is basicalll in good condition. It will require sme roof repairs, some updating of the cal and electrical systems, as well as some asbestos removal. Mrs. Kolata also noted that prospective developers should find it much easier to negotiate with one owner, the City, than with the seventeen former owners. Mr. Combs asked if the staff had any figures iadicating what the cost of maintenanim and insurance would be. -3- South Bend 4edevelcpment commission Special Mee ing - August 18, 1988 Mr. Pitts responded that the maintenance costs wculd be relatively minimal for the first f' a years. The City hopes to sell the building before that time. There are roof repairs which need to be done immediately, costing approximately $2,000. Yearly maintenance is expected to cost approximately $2,000, and security monitoring would be an additional $1,100 per year. Mrs. Kol ita noted that the staff would be meeting 3oon with the City's insurance coordina or and a representative of the insuran company to determine what i.nsuran is necessary. Mr. Wolf asked if there were plans available from the previous renovations of the buili1ing. Mrs. Kolata responded that the owners had made all plans available to the Commission. Upon a motion by Mr. Piasecki, seconded by Mr. Dondho and unanimously carried, the Commission accepted the sixteen deeds tendered by the various property owners in relation to the Robertson real estate on Michigan Street. Upon a mot ion by Mr. Combs, seconded by Mr. Donoho an unanimously carried, the Commissio accepted the 260 shares, being all of the issued and outstanding shares of Bessina Realty Corporation, as a gift to the City and authorized the prompt dissolution of the Corporation. Mr. Nimtz thanked the various property owners the shareholders of the Bessina Realty oitporation for this donation. Ms. Der asked why the owners donated the building to the city. Mr. Farabaugh responded that the owners reside throughout the countr y and it has always been difficult to get agreement on leasing or use of the building. There are ongoing expenses as well as liability while it remains em otv. .•:�a • COMISSION ACCEPTED THE 260 SHARES OF STOCK DONATED BY BESSINA REALTY CORPORATION AND AUTHORIZED DISSOLUTION OF THE South Bend ede-v Special Meet ing 2. Continue ... elopment Commission - August 18, 1988 Mr. we responded to Ms. Derbeck's question by saying that it just wasn't very salable with the divided ownership. Ms. Der asked why the Commission accepted the donation. Ms. Kolata responded that it was a major downtown building. As a public agency changed with the downtown, we should be able to dispose of it earder. Mr. Nimtz and Mrs. Kolata stressed that there is not a prospective user waiting to purchase the building. The next step will be to develop a plan for answexuig the question of what to do with the building. Mr. How 1 asked if the Commission expected to sell a bond to renovate the building Mrs. Kolata responded that if a prospective user requests public assistance to make it suitable for their use, the Commission will consider financin4 at this time. Mr. Pias cki suggested a plaque denoting this do tion. Mrs. Kolata indicated that that wo d be appropriate when we have a success project. 4. There wa$ no other business. There being no further business to come before the Commission, Mr. Donoho made a motion that the meeting be adjourned. Mr. Piasecki seconded the motion and the meeting was adjourned at 10:40 a.m. -5- THERE VMS NO OiBER BUSINESS F.11 •: a; � :Nia N Ann E. Kolata, Deputy Executive Director