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HomeMy WebLinkAbout6C3to c (!�) Community & Economic Development ' na 1200 Couniy -City Building, 227 West Jefferson, South Bend, Indian 46601-1830 Phone 574/235-9371 Fox 574/235 -9021 To: South Bend Redevelopment Commission From: Don Inks Subject: F Cubed — Process for Disposition of Equipment and a Temporary Use Agreement Date: November 26, 2012 Attached for your review is Resolution 3109 authorizing the disposition process for the equipment purchased in accordance with the terms of the Memorandum of Understanding (MOU) with F Cubed approved by the Redevelopment commission on 11/8/12. F Cubed is one of the first companies to graduate from Innovation Park. They would like to locate their growing business in Ignition Park when a multi -tenant facility is available for them to lease space. In the interim they will be locating in the former St. Joseph High School. As part of our efforts to retain this company in South Bend, and eventually have them locate in Ignition Park, the MOU commits Redevelopment to acquiring certain scientific equipment and providing an opportunity for F Cubed to lease the equipment. The cost of the equipment is not to exceed $138,000. The disposition process will include the advertising of an Offering Sheet which sets the price based on the actual cost of the equipment. It also requires any prospective purchaser to locate in Ignition Park and use the equipment to create at least 13 new jobs related to the technology or biotechnology areas, and make new capital investment of at least $2.6 million in the Airport Economic Development Area. Since the Disposition process is expected to run into late January or early February of 2013, a temporary Use Agreement is being proposed so F Cubed may take possession and use of the equipment while the disposition process is being completed. F Cubed has an immediate need for the equipment and is the anticipated end user in accordance with the MOU. Staff requests approval of Resolution 3109 authorizing the disposition process to proceed, and requests approval of the temporary Use Agreement. What We Do Today Makes A Dtfference r RESOLUTION NO. 3109 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION REGARDING THE DISPOSITION OF CERTAIN PERSONAL PROPERTY AND MATTERS RELATED THERETO WHEREAS, the South Bend Redevelopment Commission (the "Commission "), the governing body of the City of South Bend, Indiana (the "City "), Redevelopment District and the City of South Bend, Indiana, Department of Redevelopment, exists and operates under the provisions of Indiana Code Section 36 -7 -14, as amended from time to time (the "Act "); and WHEREAS, the Commission did previously declare the Airport Economic Development Area (the "Area ") to be an economic development area within the meaning of the Act, approved an economic development plan for the Area (the "Plan ") and designated the Area as a tax increment finance ( "TIF ") allocation area all pursuant to the Act; and WHEREAS, F Cubed, LLC ( "F Cubed ") is an emerging company engaged in the development of a technology created by the University of Notre Dame (the "University ") for the rapid and direct detection of DNA to be utilized for identification of contaminated drinking water, medical diagnostics in retail medical clinics and homeland defense (the "Technology "); and WHEREAS, F Cubed has had operations located at Innovation Park in the City (the "South Bend Operations "); and WHEREAS, in order to more fully develop the Technology and expand its applications, F Cubed requires (i) certain equipment, more particularly described in the MOU (as defined below) (the "Equipment'), to be used in connection with the South Bend Operations and (ii) a new location to accommodate the expanded South Bend Operations; and i DMS US 510652320 WHEREAS, F Cubed desires to locate at Ignition Park, a technology park under development in the City which is located in the Area; however, F Cubed anticipates being located for a period of time at innovation Park or temporarily located elsewhere on University property; and WHEREAS, the Commission has previously approved a form of Economic Development Memorandum of Upderstanding (the "MOU "), which MOU sets forth the understanding of the parties thereto regarding F Cubed relocating its South Bend Operations to Ignition Park upon completion of the same and upon lease terms reasonably acceptable to F Cubed, and the Commission undertaking certain actions necessary to provide certain economic incentives to F Cubed consisting of the acquisition of the Equipment as described in the MOU; and WHEREAS, the Commission will undertake a competitive bidding process to acquire the Equipment (the "Bidding Process "); and WHEREAS, following the Commission's acquisition of the Equipment, the Commission desires to dispose of the Equipment by lease pursuant to the provisions of Indiana Code 36- 7 -14 -22 in order to make the Equipment available for use in furtherance of the Plan; and WHEREAS, pursuant iollndiana Code 5- 22- 22- 1(cx4), the provisions of Indiana Code 5 -22 -22 do not apply to the disposal of personal property by a redevelopment commission established under the Act; and WHEREAS, Indiana Code 36 -7 -14 -12.2 allows a redevelopment commission established under the Act to acquire by purchase any personal property needed for the redevelopment of areas needing redevelopment that are located within the corporate boundaries of the unit, and lease or otherwise dispose of such property on the terms and conditions that such redevelopment commission considers best for the unit and its inhabitants; and -2- DMS-US 51065232v2 WHEREAS, because the Act lacks a specific process for the disposition of personal property, the Commission desires to follow as closely as possible the provisions of Indiana Code 36- 7 -14 -22 to dispose of the Equipment, including the preparation by the Commission of an offering sheet showing the equipment to be offered and the offering prices (the "Offering Sheet'); and WHEREAS, the Commission hereby determines that the fair market value of the Equipment based upon estimates of the cost of the Equipment received by the Commission is $138,000; and WHEREAS, the Commission now desires to approve the form of the Offering Sheet for the Equipment in the form contained at Exhibit A; and WHEREAS, the Commission desires to enter into a Temporary Use Agreement (the "Use Agreement') to permit F Cubed to use the Equipment once it becomes available following the completion of the Bidding Process and prior to disposition of the Equipment by the Commission; NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission as follows: The Commission hereby approves the form of the Offering Sheet for the Equipment in the form contained at Exhibit A. 2. The Commission hereby authorizes the publication of a notice of public offering pursuant to Indiana Code 5 -3 -1 and Indiana Code 36- 4- 14- 22(d). 3. The Commission hereby approves of the form of the Use Agreement contained at Exhibit B and authorizes the officers of the Commission (the "Officers ") to execute -3- DMS_US 51065232v2 and attest the Use Agreement in such form with such changes as may be necessary or appropriate and approved by the Officers as evidenced by their execution and attestation thereof. Commission. 4. This Resolutidh shall be in full force and effect upon its adoption by the *asr« -4- DMS_US 510652I2v2 APPROVED AND ADOPTED at a meeting of the South Bend Redevelopment Commission held on the 20 day of November, 2012. 0 ATTEST: Secretary SOUTH BEND REDEVELOPMENT COMMISSION President -5- DMS US 510652320 EXHIBIT A Form of Offering Sheet (See Attached) DMS_US 51065232v2 EXHIBIT B Form of Use Agreement (See Attached) DMS_US 51065232v2 OFFERING SHEET SOUTH BEND REDEVELOPMENT COMMISSION The South Bend Redevelopment Commission (the "Commission'), the governing body of the City of South Bend, Indiana (the "City"), Department of Redevelopment, is offering for lease certain personal property as described at Exhibit A attached hereto and incorporated herein (the "Property"). The Property is to be used for economic development purposes in the Airport Economic Development Area (the "Area ") and such use must comply with all requirements, terms, conditions, and limitations as set forth herein. The following are the terms upon which the Commission will lease the Property: Lease: The term of the lease agreement for the Property shall be seven (7) years and the pricing terms shall be based upon a total Property value equal to $138,000 (the "Property Value'). Annual rental payments under the lease agreement shall be approximately one - seventh (1/7) of the Property Value, unless otherwise agreed to by the Commission and the successful bidder taking into account any additional agreed upon obligations of the successful bidder. The lease agreement shall contain such other terms and conditions mutually agreed to by the Commission and the successful bidder. Conditions: The Property may only be used for economic development purposes within the Area. The successful bidder for the Property must demonstrate to the satisfaction of the Commission that such successful bidder will (a) promptly upon the completion of the first multi- tenant facility at Ignition Park locate or relocate all of its City operations to a location at or within Ignition Park, the South Bend Renaissance District or otherwise within the Area and (b) utilize the Property in accordance with a plan that anticipates the creation of at least thirteen (13) new jobs in the Area tha[are related to the technology or biotechnology sector and new capital investment of at least $2,600,000 within the Area. Any proposals submitted to the Commission must be executed by an authorized individual and describe with specificity the use of the Property in conjunction with the development thereof and acknowledgment of the terms and conditions described hereinabove. In determining the best proposals, the Commission shall consider the factors set forth in Indiana Code 36- 7- 14- 22(f). Dated this day of 2012. I� M DMS_US 51065959v2 SOUTH BEND REDEVELOPMENT COMMISSION President EXHIBIT A Manufacturer Quantity Item Eppendorf I Auto-Pipette A ilent Technologies 2 Impedance Analyzer Braintree Scientific 2 Syringe Plum ELGA Labwater, LLC I Water Purificiation VWR I Incubator National Package Service I Chemical Spill Kit Fisher Scientific I Video Microscope Ranco 3 Thermal Fused Lab Tables Titmauer 1 Autoclave Techne 1 Thermalc cler SAS 1 Portable Eye Wash Sorvall 1 Centrifuge Branson 1 Sonicator E endorf I Auto-Pipette Braintree Scientific 2 Syringe Pum Lab Research Products 1 -20C Refri erator DMS USSIW3959v2