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HomeMy WebLinkAboutSM 10-27-97r SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING October 27, 1997 2:00 p.m. Presiding: Robert W. Hunt, President 1. ROLL CALL 1308 County -City Building 227 West Jefferson Boulevard South Bend, Indiana Members Present: Mr. Robert W. Hunt, President Mr. Michael Donoho, Vice - President Ms. Paula N. Auburn, Secretary Mr. Philip J. Faccenda Members Absent: Ms. Eugenia S. Schwartz Legal Counsel: Ms. Anne E. Bruneel Redevelopment Staff: Mrs. Ann E. Kolata, Director Mrs. Cheryl Phipps, Recording Secretary Mr. James Riggs, Economic Development Specialist Others: 2. COMMUNICATIONS There were no Communications. 3. OLD BUSINESS Mr. Gary Gries, Murdoch, Coll and Lillibridge, Inc. a. Staff report on disposition of property in the Airport Economic Development Area. Mrs. Kolata stated that a Letter of Intent was received from Gary Gries who was present at the meeting and is president of Murdoch, Coll and Lillibridge, Inc. Mr. Gries'client is interested in purchasing approximately eight acres of land in the Blackthorn Corporate Park to develop a 75,000 sf to 85,000 sf building to be used H:\IiONE\CPHIPPS\WPDATA\COMMSN\102797.MIN -1- THERE WERE NO COMMUNICATIONS w South Bend Redevelopment Commission Special Meeting - October 27, 1998 3. OLD BUSINESS (CONT.) a. continued.... as its corporate headquarters. The purchaser is a not - for - profit enterprise and anticipates being exempt from paying real estate taxes. Mrs. Kolata summarized the Letter of Intent that was received last week. It offered $20,000 per acre and requested that certain information be made available to the purchaser. The purchaser requested that the seller's contract of sale be executed no later than November 15, 1997 and that the purchaser reserve the right to cancel for whatsoever reason during the Letter of Intent phase or the subsequent contract phase prior to closing. The contingencies listed in the Letter of Intent were as follows: the seller provides evidence of title satisfactory to the purchaser; the purchaser must be satisfied with the results of the soil tests undertaken and the inspection of the property; the purchaser must have obtained the necessary permits to commence mass excavation on December 1, 1997; close on the property as early as November 15, 1997; or, the purchaser will have access to the property to do the site work prior to closing; or, the seller will undertake site preparation work on behalf of the purchaser according to the purchaser's specifications. The staff recommends allowing the purchaser to do the site work prior to closing; or, close on the real estate H:\ HOME \CPHWPS \WPDATA \COMMSN\102797.MIN -2- • South Bend Redevelopment Commission Special Meeting - October 27, 1998 3. OLD BUSINESS (CONT.) a. continued.... property by November 15, 1997. A number of undertakings listed in the Letter of Intent are as follows: the seller will enforce the protective covenants as they relate to the prohibition of street parking on Mayflower Road; all utilities will be available immediately on the property except for gas which will be available by August 31, 1998; the seller will not approve the development of warehouse, distribution or assembly type buildings neither adjacent to the property nor on Mayflower Road. The seller will increase the maximum building height restriction to 40 ft and seek a zoning variance for that height; the purchaser has withdrawn the request for an automatic switch over in case a power failure should occur; the seller agrees to design a cul de sac as the main entrance to the property prior to August 31, 1998; the seller agrees to reasonably approve the installation of a microwave antenna; the seller will provide various variances from the covenants and design guidelines that relate to having less than 15 percent of land area covered by a building footprint; the purchaser requests elimination of the requirement that all of the area not covered by impervious surfaces and conservation easements be manicured lawn. The purchaser also requested waiver of the tree mitigation provision. H:\HOME\CPHWPS\WIPDATA\COMMSN\102797.MIN -3- South Bend Redevelopment Commission Special Meeting - October 27, 1998 3. OLD BUSINESS (CONT.) a. continued.... Mrs. Kolata noted that the purchaser agreed to submit $20,000 of earnest money upon the execution of the contract for sale of land. They also requested that the seller pay a fee equivalent to five percent of the total purchase price to the purchaser's representative at the time of the closing. In addition to the purchase price of $20,000 per acre stated in the Letter of Intent, a $50,000 contribution was proposed for a not - for - profit group such as: the Community Outreach Program. The purchaser requests that the seller add to the survey all trees greater than eight inches in diameter. The purchaser also has asked the seller to alster the storm sewer easement to minimize the impact on the trees. Mrs. Kolata reported that the staff has had discussions with Mr. Gries over the last few days and a number of revisions to the Letter of Intent have been suggested. The purchaser has clarified that the maximum height of the building will be 45 ft not including the penthouse. The purchaser's new Letter of Intent has increased the purchase price to $28,125 per acre but has dropped the voluntary contribution. The purchaser has also requested a right of first refusal on an additional two acres of land. H:\ HOME\CPHIPPS \WPDATA \COMMSN\102797.MIN -4- E South Bend Redevelopment Commission Special Meeting - October 27, 1998 3. OLD BUSINESS (CONT.) a. continued.... Mrs. Kolata recommended authorizing the approval of the Letter of Intent with the revised terms. The purchaser anticipates a move -in date of October 1998. Upon a motion by Mr. Faccenda, seconded by Ms. Auburn and unanimously carried, the Commission accepted the Letter of Intent as revised for eight acres of land in the Blackthorn Corporate Park at $28,125 per acre. 4. NEW BUSINESS There was no New Business. 5. PROGRESS REPORTS There were no Progress Reports. 6. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is scheduled for November 7, 1997 at 10:00 a.m. 7. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Faccenda made a motion that the meeting be adjo s. Auburn seconded the motion an qpt}ng was adj6urped at 3:03 p.m. Robert W. Hunt, President E COMMISSION ACCEPTED THE LETTER OF INTENT AS REVISED FOR EIGHT ACRES OF LAND IN THE BLACKTHORN CORPORATE PARK AT $28,125 PER ACRE THERE WAS NO NEW BUSINESS THERE WERE NO PROGRESS REPORTS ADJOURNMENT Arm E. Kolata, Director H:\ Ii OME\ CPHIPPS \WPDATA \COMMSN\102797.MIN -5-