Loading...
HomeMy WebLinkAbout04-11-08 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING April 11, 2008 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Mr. Karl King, Vice President Mr. Greg Downes, Secretary Mr. Hardie Blake, Jr. Mr. Ken Peczkowski Legal Counsel: Mr. Charles S. Leone, Esq. Mr. Lawrence Meteiver, Esq. Redevelopment Staf£ Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Ms. Jennifer Laurent, Economic Development Specialist Mr. Nicholas Witwer, Economic Development Specialist Others Present: Ms. Jamie Loo, South Bend Tribune Ms. Rita Kopala Ms. GlendaRae Hernandez Mr. John Peddycord, Esq. Mr. Kevin McConville Cameraman, WNDU 2. NEW BUSINESS A. Airport Economic Development Area (1) Staff report on disposition of property in the Airport Economic Development Area (Blackthorn Hotel) Mr. Witwer noted that the Commission approved development of the County Mayor Hotel in Blackthorn Corporate Park by JF+A Properties back in 2001. Since that time both the developer and the city have overcome significant adversity related to the site regarding relocation of an oil pipeline and relocation of utilities. Those difficulties have been resolved since 2006 and a Contract for South Bend Redevelopment Commission Special Meeting -April 11, 2008 6. NEW BUSINESS (CONT.) A. Airport Economic Development Area (1) continued... Sale of Land was entered into on June 23, 2006. The developer has yet to provide the faithful performance guarantee in the amount of $33,920, and the closing date of August 24, 2006 set in the Contract for Sale of Land has long since passed. Staff requests permission to send notice to JF+A Properties giving them thirty days to provide the performance guarantee and proof of financing, and setting a new closing date sixty days from receipt of the letter. Mr. Peczkowski asked why it has taken us so long to get to the point of demanding compliance. Mr. Inks responded that staff maintained contact with the developer during that time. Financing for the project was part of a much larger financing package, significantly bigger than this project. It was a foreign financing. The developer kept thinking they were close and closer to the funds being available, but it never quite got there. Staff feels we need to draw a line. If they can't meet the deadline we'll add the property to the option with Cressy & Everett and make the property available to other developers. Upon a motion by Mr. King, seconded by Mr. Peczkowski and unanimously carried, the Commission authorized sending notice to JF+A giving them thirty days to provide the $33,920 performance guarantee and proof of project financing, and requiring closing within sixty days of the date of the letter. COMMISSION AUTHORIZED SENDING NOTICE TO JF+A GIVING THEM THIRTY DAYS TO PROVIDE THE $33,920 PERFORMANCE GUARANTEE AND PROOF OF PROJECT FINANCING, AND REQUIRING CLOSING WITHIN SIXTY DAYS OF THE DATE OF THE LETTER. 2 South Bend Redevelopment Commission Special Meeting -April 11, 2008 6. NEW BUSINESS (CONT.) B. Northeast Neighborhood Development Area (1) Commission approval requested for Resolution No. 2448 approving the Fair Market Value of Property in the Northeast Neighborhood Development Area. (Eddy Street Commons Parking Garage property) Ms. Laurent noted that at the March 29 meeting the Commission approved Bid Specifications for the disposition of a to-be- constructed parking garage related to the Eddy Street Commons mixed use development in the Northeast Neighborhood Development Area. At that time we had not received determination of Fair Market Lease Rental Value from two appraisers to set the offering price for the property. Those appraisals have been received and the average of the two appraisals is an annual lease rate of $742,500. That number becomes part of the Bid Specifications. Ms. Laurent noted that the publication of the Notice of Intended Disposition of Property has been pushed back to April 11 and April 18 with Receipt of Bids at 10:00 a.m., on May 2, 2008. Mr. Peczkowski asked the term of the lease. Mr. Inks responded that the lease would run 25 years. Mr. Peczkowski asked who will receive the funds paid from the lease. Mr. Inks responded that the Commission would receive any lease payment that is received. Mr. Peczkowski asked who owns the property. Ms. Laurent responded that the South Bend Redevelopment Commission Special Meeting -April 11, 2008 6. NEW BUSINESS (CONT.) B. Northeast Neighborhood Development Area (1) continued... University of Notre Dame is the owner of record. Mr. Inks responded that Notre Dame will sell the property to Kite. Kite will lease it to the Redevelopment Authority which has already leased it to the Redevelopment Commission. The Redevelopment Commission is leasing the site and garage "to be constructed". That is what we are advertising at this time, assuming that all of those land transactions take place and we have a leasable interest in the property. Mr. King noted that the purpose of the lease is to have a conduit for funds to service debt payments on the bond used to construct the parking garage. Mr. Peczkowski asked if we know the amount Notre Dame will sell the property to Kite for. Mr. Inks responded that we do not. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2448 approving the Fair Market Value of Property in the Northeast Neighborhood Development Area. (Eddy Street Commons Parking Garage) 3. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is scheduled for Friday, April 18, 2008 at 10:00 a.m. COMMISSION APPROVED RESOLUTION NO. 2448 APPROVING THE FAIR MARKET VALUE OF PROPERTY IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. (EDDY STREET COMMONS PARKING GARAGE NEXT COMMISSION MEETING 4 South Bend Redevelopment Commission Special Meeting -April 11, 2008 4. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. King made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 10:15 a.m. _ ~~~~ D~~~:~~.. L~ire~.tor. ADJOURNMENT ~+Iar~~a I. James, Frei