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HomeMy WebLinkAboutSM 10-22-97C • SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING October 22, 1997 1308 County -City Building 10:00 P.M. 227 West Jefferson Boulevard Presiding: Paula N. Auburn, Secretary South Bend, Indiana 1. ROLL CALL Members Present: Ms. Paula N. Auburn, Secretary Ms. Eugenia S. Schwartz Mr. Philip J. Faccenda Members Absent: Mr. Robert W. Hunt, President Mr. Michael Donoho, Vice - President Legal Counsel: Ms. Anne E. Bruneel Redevelopment Staff: Mrs. Ann E. Kolata, Director Ms. Vangelean Urbanski, Recording Secretary Mr. James Riggs, Economic Development Specialist Mrs. Cheryl Phipps, Administrative Assistant 2. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS a. Staff report on disposition of property in the Airport Economic Development Area. Mrs. Kolata stated that on Friday, October 17, 1997, the staff received a Letter of Intent for a piece of property H:\H OME\CPHWPS \WPDATA \COMMSN\102297.MIN 4- THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Special Meeting - October 22, 1997 6. NEW BUSINESS (CONT.) a. continued.... located in the Airport Economic Development Area. Mrs. Kolata and James Riggs spoke with a representative of the purchaser. The Letter of Intent is being revised because the purchaser is now considering a site located at the end of the cul de sac on Mayflower Road. Mrs. Kolata stated that the Letter of Intent is from Murdock Coll and Lillibridge, Inc., out of Chicago, on behalf of a to -be -named purchaser. The purchaser intends to construct a 75,000 sf to 85,000 sf, two or three -story building on the property located on Mayflower Road for use of its corporate headquarters. The purchaser is a not - for - profit enterprise; therefore, the purchaser anticipates being exempt from paying real estates taxes. The purchaser has submitted a purchase offer in the amount of $20,000 per acre. They have requested, in their proposal, a number of documents and a due diligence period. One of the provisions that the purchaser included in the proposal is that the purchaser shall have immediate access to the property to conduct soil tests. The purchaser requests to negotiate a contract of sale, to be agreed upon and executed no later than November 15, 1997. The purchaser requests the right to cancel at any time for any reason. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\102297.MIN -2- South Bend Redevelopment Commission Special Meeting - October 22, 1997 6. NEW BUSINESS (CONT.) a. continued.... Mr. Faccenda asked how long the purchaser is requesting the right to cancel. Mrs. Kolata responded that they want that option until the real estate closing. The purchaser originally proposed to execute the Contract by November 15, 1997, and close by November 30, 1997. The purchaser currently proposes to execute the contract and close on the property simultaneously. The purchaser requests to be provided with title insurance and must be satisfied with any soil tests that are conducted. The purchaser will need to obtain the necessary permits in order to commence mass excavation work on the property by December 1, 1997. There may be a couple of variances that need to be obtained and the filing deadline for the November Board of Zoning Appeals meeting is October 29, 1997. The purchaser gave an indemnification that indemnifies the seller and holds the seller harmless for claims for damage to the property during the purchaser's soil testing and inspection of the property prior to closing. The purchaser requests that the seller undertake site preparations on behalf of the purchaser; or, requires access to the property to do site work prior to closing. The purchaser requests that the seller H:\HOME \CPHIPPS \WPDATA \COMMSN\ 102297.MIN -3- South Bend Redevelopment Commission Special Meeting - October 22, 1997 6. NEW BUSINESS (CONT.) a. continued.... enforce the prohibition of street parking along Mayflower Road. Ms. Schwartz commented that the power to enforce the prohibition of street parking along Mayflower Road can only be enforced to the extent of the seller's power. Mrs. Kolata commented that the staff would work with the Michigan Soccer Association to develop on -site parking. Staff will also work with the Police Department to enforce the "no parking" provisions on Mayflower. The purchaser requests to be provided with all utilities immediately and gas will need to be provided by August 31, 1998. Sewer and water are currently available to the property. The purchaser originally requested that industrial warehouse, distribution or assembly -type buildings not be constructed within 1,500 ft of the proposed property. The purchaser has now requested that industrial warehouse, distribution or assembly -type buildings not be adjacent to the proposed property or on Mayflower Road. Ms. Schwartz asked if they identified which section of Mayflower Road should be prohibited from industrial warehouse, distribution or assembly -type buildings. Mrs. Kolata stated that it was her understanding that this applies to the section of Mayflower within the Blackthorn Corporate Park. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\102297.MIN -4- E South Bend Redevelopment Commission Special Meeting - October 22, 1997 6. NEW BUSINESS (CONT.) a. continued.... The purchaser requests that the seller increase the maximum building height restrictions to 45 ft and seek a zoning variance from the appropriate governmental authority prior to the closing. The zoning requirement currently is 40 ft. but it has not been concluded whether the proposed project will be a two -story building or a three - story building. The purchaser requests that the seller provide capability of an automatic switch over to a second power grid should the building encounter a power failure. Mrs. Kolata noted that it is not clear who is expected to bear the cost of providing the automatic switch over. To have an automatic switch installed is very expensive; a manual switch can be installed at a lesser price, although the purchaser is requesting an automatic switch. The purchase requests that the seller agree to consider the purchaser's recommendation to re- design the cul de sac and agree to construct the cul de sac prior to August 31, 1998, based on the specifications agreed to by the purchaser and seller. The purchaser requests that the seller agree to reasonably approve the installation of a microwave antenna. The desired height of the microwave antenna has not been H:\ HOME\ CPHIPPS \WPDATA \COMMSM102297.MIN -5- South Bend Redevelopment Commission Special Meeting - October 22, 1997 6. NEW BUSINESS (CONT.) a. continued.... determined. The purchaser needs to communicate with another facility via the microwave antenna, but it is not clear whether the antenna has to be located on the site. The purchaser requests conservation easements and a reserved open space. The purchaser requests to not be held to the requirement that all of the five open -space acres be manicured, and that the purchaser be allowed to have some open, natural area. Approximately fifty percent of the tree area will be used for development of the corporate headquarters and the parking area, and the purchaser requests a waiver of the tree mitigation provisions. Mr. Faccenda directed the staff to work with the purchaser to try to obtain a voluntary contribution to the City since they will not pay property taxes. Ms. Schwartz noted that the purchase price of $30,000 per acre is appropriate and there should also be a payment in in lieu of taxes. The Commission authorized the staff to negotiate a counter proposal with the purchaser on those issues. Upon a motion by Mr. Faccenda, seconded by Ms. Auburn and unanimously carried, the Commission authorized the staff to negotiate a counter proposal on the disposition of property in the Airport Economic Development Area. H:\H OME\CPHIPPS \WPDATA \COMMSN\102297.MIN -6- U COMMISSION AUTHORIZED THE DIRECTOR TO NEGOTIATE A COUNTER PROPOSAL ON THE DISPOSITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Special Meeting - October 22, 1997 6. NEW BUSINESS (CONT.) b. Commission approval requested for proposal for surveying and planning services for property located in the Airport Economic Development Area. Mrs. Kolata stated that this proposal is from The Abonmarche Group for the subdivision planning and approval process related to the property referred to in the Letter of Intent discussed previously. A survey and a replat of the site is needed. The cost for this work is $2,600. The plat submittal must be completed by October 30, 1997. Upon a motion by Mr. Faccenda, seconded by Ms. Schwartz and unanimously carried, the Commission accepted the proposal from The Abonmarche Group for surveying and planning services for property located in the Airport Economic Development Area and authorized the staff to file the necessary variances and petitions associated with this project. c. Commission approval requested for officers to execute documents related to the Leighton Plaza project. Anne Brunel stated that a closing has been scheduled with the Multi- Employer Property Trust, Inc. She has been corresponding for the last several months with the attorney for an investment firm to negotiate the amended and restated development agreement that will supersede the development agreement that currently exists with the developer — Trammell Crow. H:\ HOME \CPHWPS \WPDATA \COMMSN\102297.MIN -7- THE COMMISSION ACCEPTED THE PROPOSAL FROM THE ABONMARCHE GROUP FOR SURVEYING AND PLANNING SERVICES FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND AUTHORIZED THE STAFF TO FILE THE NECESSARY VARIANCES AND PETITIONS ASSOCIATED WITH THIS PROJECT E South Bend Redevelopment Commission Special Meeting - October 22, 1997 6. NEW BUSINESS (CONT.) c. continued.... Mrs. Kolata reported that bids on the pre- cast garage came in higher than expected and the staff is working on ways to cut back the cost of the garage without significantly impacting the scope of the project. Because of that, the staff is recommending that this item be tabled until more details are worked out. Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda and unanimously carried, the Commission tabled item 4.c. 7. PROGRESS REPORTS There were no Progress Reports. 8. NEXT COMMISSION MEETING: The next Meeting of the Redevelopment Commission is a Special Meeting scheduled for October 27, 1997 at 2:00 p.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Ms. Schwartz made a motion that the meeting be adjourned. Mr. Faccenda seconded the motion and the 0 ITEM 4.C. WAS TABLED THERE WERE NO PROGRESS REPORTS NEXT SCHEDULED MEETING ADJOURNMENT meeti djourned at 9• Robert W. Hunt, President Ann E. Kolata, Director H:\IiOME\CPHrPPS\WPDATA\COMMSN\102297.MW W - 8-