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6 ( if ) Sovxu a o� �1i,ilCi��,Wo Community & Economic Development 1865 1200 County -City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 ❑ Phone 574/235 -9371 ❑ Fax 574/235- 9021 To: RedevelopmenttCCommission From: Ann KolatL/�J�� Subject: Land Sold to Raitt Corporation in Oliver Industrial Park Date: April 8, 2011 In 2007 the Commission sold a 4.5 acre site in Oliver Industrial Park to Raitt Corporation. Raitt had until 9 /7/10 to construct a 50,000 s.f. flex -space industrial building on the property. Raitt has not constructed the building within the allowed time frame. I talked to Erick Guerra of Raitt in October 2010 and asked what was happening with the property. He said that they were not able to move forward with construction at this time but were still working on obtaining leases for the property. He said that he would like to request an extension. Mr. Guerra also informed me that he has moved to Boca Raton Florida but he planned to be in South Bend every month or so to conduct business. On January 3, 2011 I received a letter dated 12/14/10 requesting a two year extension to our agreement. After the first of the year I requested a meeting with Mr. Guerra to discuss their request. To date he has not responded to this request. The staff has discussed the request and it is our opinion that we should not agree to the extension but rather enforce the parts of the Contract that allow us to get the property back. The process for getting the land back requires a Notice of Default letter from our attorney (following Commission authorization) giving Raitt 30 days to transfer title back to the Commission. The Commission would need to pay Raitt the purchase price of $114,750 plus pay closing costs of approximately $1,000. If Raitt did not deed the property back to the Commission within the 30 day time period, our attorney would go to court to get the property back. Staff requests the Commission grant authority to the staff to begin the default process and authorize Don Inks to sign any necessary documents. Please contact me at 235 -9374 or akolata&southbendin.gov if you have any questions.