HomeMy WebLinkAbout6.C.(1) Staff Report Disposition (Oliver Industrial Park),~O~TH BF
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Community & Economic Development r~~~~
1200 County-City Building, 227 Wesi Jefferson, South Bend, Indiana 46601-1830 ~ Phone 574/235-9371 • Fax 574/235-9021
To: Redevelopment Commission
From: Ann Kolata ~~ ~ ~! ~~--
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Subject: Proposal to Purchase Land -Oliver Industrial Park
Date: September 15, 2008
Date Submitted: September 10, 2008
Property to be Purchased: Lots 7 & 8 -Oliver Industrial Park -approximately 7.84 acres
Potential Purchaser: River Bend Hose Specialty Inc./3G Properties (partnership)
Principals: James C. Betz -President/'hreasurcr
Linas K Slavinskas -Vice President/Secretary
Terms of Purchase: Purchaser has offered $0.00 for the property with the stipulation that they will
forfeit the opportunity to apply for real property tax abatement.
Description of Protect: River Bend Hose Specialty, Inc. is a wholesale distributor of commercial
hose products and certain hardware supplies. Their proposal states the following:
River Bend hose Specialty inc., in conjunction with 3G Propertier (real estate partnership), propose
to construct a new, 7~, 000 sq f1, manufacturing and warehouse facility on lots 7 & 8 of the Oliver
Industrial Park. Preliminary site plans and drai~~i~2gs of the futility are attached.
The purpose of this project is to consolidate manufacturing and distribution operations into one
building. Currently these operations are perft~rmed in three buildings ai two locations. This project
will allow River Bend Hose Specialty to be more efficient and will retain 60 jobs in ibe city of Souib
Bend. In addition, this project will allow River Bend Hose Specialty to expand its business and
services in lbe fzrture.
River Bend hose Specialty (nc. makes this proposal 1ti~ith the understanding=That we i+~rll not be
responsible for any existing environmental conditions and will not bear any additional construction
cos/s caused by abnormal soil conditions, i. e. hutted objects, unstable soil, high water fables etc.
With the acquisrlion of /his property in the form of a donation or a! a nominal price, River Bend
hose Specialty will forfeit the opportunity to apply fbr real estate property iax abatements.
Staff Comments:
1. The lots that River Bend hose wants to purchase are identified as Lots 7 & 8 on the attached
marketing materials for the Oliver industrial Park. On the legal plat they are identified as
Lots 8 & 9. Any Commission action to accept this proposal and sell the property should
acknowledge the different parcel numbers.
2. A 10% Faithful Performance Guaranty was not submitted with the proposal.
3. The required Statement of Qualifications and 1~ inancial Responsibility was submitted and
reviewed by staff.
4. The required Statement for Public Disclosure was submitted and reviewed by staff.
5. The required Affidavit ofNon-Collusion has been submitted by both Mr. Betz and Mr.
Slavinskas.
6. Mr. Slavinskas states for the record that he is a Board Member of the Urban Enterprise
Association.
7. The proposed Site Plan and building elevations were submitted with the proposal. The
elevations are preliminary and staff would like to work with them on the south elevation. It is
our understanding that additional architectural detail and/or windows will be added to that
elevation.
8. Landscaping of the property has been discussed with River Bend Hose but the detailed
landscaping plan was not submitted with the proposal. This will need to be provided and
finalized.
9. Although River Bend Hose has requested that they purchase the land for $0 or a nominal
amount, they have agreed to not request real property tax abatement for this development.
"The value of the tax abatement is estimated to be more than the value of the property. The
land value would be in the range of $20,500 - $25,500 per acre ($160,720 - $] 99,920). Based
on a $2.5 million project cost, the value of the tax abatement would range between $250,000
and $300,000.
Staff Recommendation:
"The staff recommends that the Commission accept the proposal from River Bend hose Specialty,
Inc/ 3G Properties (partnership) and direct the Commission's attorney to prepare the necessary
documents to close this transaction. This is an exciting project. River Bend Hose is going to spend
more than $2.5 million on a 75,000 s.f. building that will consolidate its operations from three
buildings into one. It not only provides for their current business needs, it provides room for them to
expand the building in the future. River Bend Hose is a local business that has shown steady growth
in business and employees during its existence. Their financial statements indicate a strong
company. This development will be a strong addition to the Oliver Industrial Park.
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