5.A.(1) Certificate of Completion

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~- ~ ~ i> • • ~,~~'~` ~~'~~' /~~d, J \ / `z Community & Economic Development `~~~ ~~~''~a~~ 1200 County-City Building, 227 West Jefferson, South Bend, Indiana 46601-1830 Phone 574/235-9371 Fax 574/235-9021 To: South Bend Redevelopment Commission From: Bob Mathia ~ ~yjj Subject: Madison Center, Inc. -Return of Performance Guarantee Date: October 21, 2009 On November 7, 2003, the Redevelopment Commission signed a Contract for Sale of Land with the Madison Center. The Contract was for three parcels of land commonly known as the Crescent Street Properties which are located between Niles and Hill Streets (See attached map.). The Contract required Madison Center to provide a performance guarantee to the Commission to assure that the redevelopment promised by the buyer would actually occur. The guarantee was a payment of 10% of the purchase price of $480,000. Acquisition of the property was intended to facilitate implementation of a construction and expansion plan for Madison Center"s campus in order to increase the scope and quality of the services it provides. Madison Center states that work is now complete and the organization is requesting the return of its guarantee payment. However, before the guarantee can be returned the Commission must issue a Certificate of Completion which certifies that the project has been completed in substantial accordance with the plans approved by the Commission. The plans for the Crescent Sheet Properties called for construction of: (a) a multi purpose building containing 60,000 to 80,000 square feet of space and costing $10,500,000 to $14,000,000 to house employee training facilities, outpatient service facilities, other clinical facilities and possibly retail space on the first floor; and (b) a group home containing 3,000 to 5,000 square feet at a cost of $375,000 to $625,000 to house eight to sixteen patients. On September 30, 2009, Madison Center's attorneys, on behalf of the organization, submitted a letter describing the improvements made on the Madison campus, including the Crescent Street Properties, and requested the issuance of a Certificate of Completion and return of the perfornlance guarantee. In sum, the letter states that Madison Center constructed a children's facility containing just 30,000 square feet at a cost of approximately $4,500,000 on the Crescent Properties. The letter notes that the building plans for another building, the Geropsychology Institute, located along Niles Avenue and north of the Crescent Properties, were enlarged from 76,000 to 90,000 square feet to house retail space, training areas and patient areas ori~~inally planned for the children's facility. The cost of this building is over $20,000,000. The attorney's letter further explains that the group home was moved from the Crescent Properties to the corner of Turnock Street and South Bend Avenue with the collaboration of officials from the Northeast Neighborhood Revitalization Organization (NNRO) and Madison Memo.10.21.09.doc What We Do Today Makes A Difference