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HomeMy WebLinkAboutSM 08-20-97SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING August 20, 1997 1:00 P.M. Presiding: Michael Donoho 1. ROLL CALL 1308 County -City Building 227 West Jefferson Boulevard South Bend, Indiana Members Present: Mr. Michael Donoho, Vice - President Ms. Eugenia S. Schwartz Mr. Philip J. Faccenda Members Absent: Mr. Robert W. Hunt, President Ms. Paula N. Auburn, Secretary Legal Counsel: Ms. Anne E. Bruneel Redevelopment Staff: Mrs. Ann E. Kolata, Director Ms. Vangelean Binion, Recording Secretary Mr. James Riggs, Economic Development Specialist Media: Mr. Terry Bland, South Bend Tribune 2. NEW BUSINESS a. Staff report on acquisition of property in the Airport Economic Development Area. Ms. Kolata stated that a month ago the Commission authorized a purchase offer for approximately 63 acres of land located north of Brick Road. The purchase offer was sent on July 28, 1997 and a counter offer has been received. James Riggs stated that the counter offer includes three changes to the initial offer. James Riggs stated that the first change is related to the purchase price. He noted that the counter offer is for a total purchase H:\ HOME\ CPHIPPS \WPDATA \COMMSN\082097.MIN -I- South Bend Redevelopment Commission Special Meeting - August 20, 1997 price of $1,575,000. The second change proposes that the seller would be paid in five installments. The first payment is to be in an amount of $1,000 to be paid at closing prior to September 1, 1997. The remaining four payments would each have a principal amount would be $393,500. An interest charge of 4 %2 % would be charged per annum. The interest charge will be applied to the principal payment each year on September 1 based upon the unpaid balance. He also noted that the interest charge would be paid first. The third change states that the Commission will fund the payments of the purchase price with Tax Increment Revenues which would include revenues received from the sale of land in the Airport Economic Development Area as the payment is subject to annual appropriation by the Redevelopment Commission. James Riggs stated that item 6.g. in the counter offer states that the buyer and seller agree that the buyer will pay to the current farm lessee of the property an amount not to exceed $20,000 for losses and damage to the existing crop on the parcel caused by construction activity at the site. It will also allow the current farm lessee access to the parcel to maintain and harvest the undisturbed crop. James Riggs also noted that the other change included changing the date of closing to a date prior to September 1, 1997. H:\ HOME\ CPHIPPS \WPDATA\COMMSN\082097.MIN -2- South Bend Redevelopment Commission Special Meeting - August 20, 1997 Ms. Kolata stated that the staff anticipates that only half of the property will be disturbed this year. Ms. Kolata noted that Redevelopment's purchase offer was sent simultaneously with a purchase offer from Main Street Associates to purchase fourteen acres also owned by the Doris J. Park Revokable Trust. Each offer was contingent upon the other. Ms. Kolata noted that it is the staffs intention that Main Street Associates will purchase fourteen acres and the City of South Bend will purchase the remaining 63 acres. She also noted that these transactions will take place simultaneously. Ms. Kolata noted that Main Street Associates will develop their fourteen acres this year. Also, Redevelopment will begin construction for road, water and sewer improvements that will service the fourteen acres and a portion of the remaining 63 acres. The staff recommends accepting the counter offer and proceeding with the closing. Mr. Faccenda stated that the total purchase price is based on 63 acres at $25,000 an acre. Ms. Kolata stated that the property was subdivided for planned road improvements. She also noted that steps will be taken in the next few weeks to have the property appraised for disposition so that the land is available later this year or early next year. She noted that covenants and restrictions will have to be developed to outline what type of developments are wanted for the property. The property is industrially zoned land and has bypass access. It is H:\HOME\CPHIPPS\WPDATA\COMMSN\082097.MIN -3- South Bend Redevelopment Commission Special Meeting - August 20, 1997 located right at the interchange at Brick Road. Mr. Faccenda asked how the Commission will account for damage to the farmer's crop. Anne Bruneel stated that this price represents a consequential damage of the property. Mr. Faccenda asked from what account the road will be paid. Ms. Kolata stated that the road will be paid from tax increment available in the Airport Economic Development Area. She also stated that the Water and Sewer Department may be able to help with the water and sewer using water and sewer funds. If not, tax increment will pay for these improvements as well. Mr. Faccenda also stated that if there's a potential buyer in the future, the Commission will want to know if the land will be sold at a lower price than what the land initially cost. Ms. Kolata stated that the land will be appraised for disposition and it is unlikely that we would sell it for less than what it cost per acre. She also noted that if the land is appraised as industrial (with water and sewer and road) the disposition cost will probably be $30,000 or more an acre. Ms. Kolata noted that some of the sales that have occurred in the Airport Area have been in the low $30,000s or as much as $35,000 an acre for industrial land that is not as favorably situated as this piece of land. Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda, the Commission approved the acquisition of property located in the Airport Economic Development Area. H:\IIOME\ CPHIPPS \WPDATA \COMMSN\082097.MIN -4- COMMISSION APPROVED THE ACQUISITION OF PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA ho South Bend Redevelopment Commission Special Meeting - August 20, 1997 3. OTHER BUSINESS !0"11111130W Ii I There being no further business to come before the Redevelopment Commission, Ms. Schwartz made a motion that the meeting be adjourn r. Faccenda seconded the motion an eeting was adjourned at 1:31 p.m. Robert W. Hunt, President H:\HOME\CPHIPPS\WPDATA\COMMSM082097.MIN ADJOURNMENT e C Ann E. Kolata, Director -5-