08-09-99 Community & Economic Development

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Community and Economic Development Committee August 9, 1999 '. Page 2 i The Committee then received an update from Jon Hunt on the location for Studebaker parts inventory. He noted that a financing plan has been placed before Mike Lambert, noting that time is of the essence. He noted that the exterior of the building must be addressed, however they were also considering relocations which would not have financial considerations by the Commission. The roof would be in a continuous patching situation. A lease for$ 1.00 per year from the Redevelopment Commission is being considered in AO j addition to other conditions. Mr. Hunt noted that he urged individual members of the Studebaker Drivers Club to be contacted fro potential investments, since the Club itself has noted on numerous occasions that it does not have finances for investment. The City has invested more than $ 210,00 for the building and property plus $ 70,000 to $ 80,000 for architecture/engineering expenses. MR. Hunt stated that the City cannot finance this project on its own. Mr. Robert Hunt stated that there are no simple solutions. He noted that one estimate projects that over one million dollars is necessary just to make the building habitable. Dr. Varner noted that approximately a year ago the property was purchased by eminent domain with$750,000 being paid for the building and$2 million for the parts inventory. There was to be a commission back to the City on sales of parts. It was noted that to date the City has received approximately $ 100,000 in commissions. John Broden is working on this matter.e . It has been estimated that between 1,100 to 1,700 truck loads of parts are currently housed. Mr. Jon Hunt noted that between old inventory, new inventory, work in progress and rehabilitated parts,that there could be$ 1.8 million involved. Council Member King voiced concern about further involvement in the project, and does not understand the project from a "reasonable business basis". Jean Troutman-Poole voiced similar concerns as Council Member King. In response to a question from Council Member Sniadecki, Mr. Jon Hunt noted that the Allied Proj ect s building has approximately 1 1/2 million square feet in their three (3) buildings. He noted that Mayor Luecke is putting a cap on the City's involvement. ement. Council Member Ujdak also voiced concerns with the overriding issue being time. Ann Kolata noted that parts could be liquidated with a "drop dead" deadline being April 1,2000. The land is to be cleared in the Fall f 2 0 2000. Council Member Pfeifer stated that the City should learn from its mistakes and not continue to make investments if the project is going no where. Council Member Kelly noted that Council Member Hosinski requested that Emerson Forest be placed on today's Committee agenda, however he is absent today. Council Member Ujdak suggested it be discussed at a later date. He noted that he drove through the development today and noted two (2) new stick built homes which are almost completed. Council Member Kelly stated it would be discussed ata later point in time.