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HomeMy WebLinkAbout6C(1) 348 Columbia~.~.~%~ Staff Report Disposition of Property at 348 Columbia Street ?/?7/09 In the first year of this millennium, the Redevelopment Commission successfully worked with Press Ganey (the operating entity) to retain and grow the company at its current location. As a part of the Redevelopment Agreement entered into by Press Ganey and the Redevelopment Commission, property at 348 Columbia was to be purchased. Ganey Press Real Estate purchased the building occupying the site and the Redevelopment Connnission acquired the land on which the building was located. Redevelopment, after completing the statutory disposition process, entered into a long term Ground Lease (49 years with two 25 year renewal options) with Ganey Press Real Estate for the use of the land. The Redevelopment Agreement and Ground Lease both anticipated a future sale of the property and established a framework for that sale to take place. The Redevelopment Commission has two options: 1. The Ground Lease can be assigned to the new owner of the property; or 2. The Redevelopment Commission can include its property in the sale and receive payment fi•om the sale proceeds based on a formula established in the Ground Lease. The first $1,150,000, after deducting expenses of the sale, goes to Ganey Press Real Estate. The next $400,000 goes to Redevelopment, and any remaining proceeds are split equally between Redevelopment and Ganey Press Real Estate. Ganey Press Real Estate has sent the attached letter indicating a sale may be imminent, and would include the property at 348 Columbia, along with 3 other properties. Total sale proceeds, less the costs of the sale, would be allocated to each property based on square footage of building improvements. Staff recommends favorable consideration by the Redevelopment Commission for the sale of 348 Columbia and the allocation of sale proceeds as proposed.. A C.., + ~~ ~ °: ~~ : ~~ s ~ c~t- x '~ p F ~ ;,_ „ City of S~ s f ~. ^> . li Crowe Group Properties LLC '~~ ~' ,„. J V Realty Inc Attn: F t. ' T .. "~a.~ ~ ~V Real ~ ~-~ ~\\~ 18 Colur-t = 348 Columbia St ~r' ~.:t- ~-~ Cressy & Everett Mgmt 200 City of South Bend Redevelopment Commission ~~~ . +~° 4 ~ ~ City of South Bend Redevelopment Commission ~'*try ~ Ne Of 350 S. Columbia.__ ~~~ ~_' `,~ ~ 350 Coluia ' ~ ,>~~ arrington`John F Rev Trust Date 3/1/97 John F Harrington Trustee ~ ^r °~~ ` _ r, ~~ ` i~~,f~s`'' Rgo Associates C/O Holladay Corp. 3043 12TH FI C ~cey S C/O Cressy & Everett Mgmt 200 ~~, 205 W Jefferson ,~ ~ sj;';_ 404 S Columbia ~5. Ganey Press Real Estate Llp % Press Ganey Associates • r ;~ United States OfAmerica Wash D C ~. I ~ i `, ~' ~ 501 E Monroe 401 E Monroe 18 M ~ Ganey Press Real Estate Llp ~s Real Estate Llp Attn: Rodney F Ganey & Irwin Press ~.~ ~ E ~ 515E ounty ~ inroe ,~ IV