6. E (3) Main and Western Disposition parcel

Home Browse Search

lr ~ ~~~ ~U~e e, W -\~~`n/ /~~ _ - , Community & Economic Development y~~°,, • ~.~5 1200 County-City Building, 227 West Jefferson, South Bend, Indiana 46601-1830 Phone 574/235-9371 Fax 574/235-9021 To: Redevelopment Commission n~ / From: Bill Schalliol, Economic Development Planner ~{4l,/(~(~( Subject: Purchase Option Agreement -Main and Western Disposition Parcel Date: February 17, 2010 Attached to this memorandum is a Purchase Option Agreement for the Main and Western Disposition Parcel located at the southeast corner of the intersection of Main and Western. On December 3, 2010, the Commission completed its disposition process for this parcel and no conforming purchase bids were received for the property. The offering price for the parcel, based upon the average of two appraisals, was $80,825.00 for .78 acres. Over the last thirty days, staff has been negotiating with Main at Western Ventures, LLC, concerning the purchase of the Main and Western Disposition Parcel to their LLC. After much coordination, the attached Purchase Option agreement attached is the final form of agreement between the parties. The option agreement is for an exclusive purchase agreement for a period from February 23, 2011, to February 29, 2012. The proposed option period will allow the Main at Western Ventures, LLC time to present the development site to national retailers to allow for commercial development on the site. The option price for the site is proposed at Ten Thousand Dollars ($10,000.00) and the funds will be held in escrow by Meridian Title until time of closing or the expiration of the option period at which time the funds would be returned to the LLC. Department staff have been working for many years to assemble, clear, and prepare this site for redevelopment. Development on this parcel will complement the many other developments happening along the Western Avenue corridor including the following: - improvements at Coveleski Stadium with a new main entrance connecting the park to the corner of Lafayette and Western - site improvements at William and Western including the recent demolition of the Fred's Transmission site and proposed site improvements to the former Harmon Glass and Richey's Radiator properties - renovation and reuse of the commercial properties on the southeast corner of Taylor and Western by the Granger Community Church - building and site improvements to the South Bend Housing Authority properties - construction of the Kroc Center at Chapin and Western - new intersection construction at Walnut and Western This option proposal presents the Commission with an opportunity to sell a key parcel at a highly trafficked downtown crossroad to a highly qualified developer and development team proposing to bring a national retail use to the central business district. With the structure of this agreement, all parties have high opportunity for reward with minimal risk exposure. Staff recommends approval of this Purchase Option Agreement with Main at Western Ventures, LLC. What We Do Today Makes A Difference!