REDEVELOPMENT COMMISSION MEETING MINUTES

May 12, 2014

 

The Regular meeting of the city of Mishawaka Redevelopment commission was called to order at 6:30 P.M., Monday, May 12, 2014, in Room 205, City Hall, 600 East Third Street, Mishawaka, Indiana. Commissioners O’Dell; Buraczewski; Pingel; and Stillson. Also present were Attorney Beutter; David Thomas, Laura Raygoza and Marilyn Jones.

APPROVAL OF APRIL 2014 MINUTES
Commissioner O’Dell moved that the minutes from the April 28, 2014 Redevelopment Commission meeting be approved, Commissioner Buraczewski seconded; motion passed.

APPROVAL OF FINAL PURCHASE AGREEMENTS
Dave Thomas presented final purchase agreements to Commission with changes and signatures. Signatures from Shiebelhut Group, Doug Merritt and copies of signatures from the Dodge Group and Betz. He is still awaiting the signature from Trevino and will have it by 9:30 AM on Tuesday, May 13, 2014. Dave Thomas stated that there is no formal action needed on the purchase agreements.

AUTHORIZE DAVID THOMAS DIRECTOR AS SIGNATORY FOR PURCHASE AGREEMENTS
Dave Thomas asked that he be made the designated signer for the closing of the above mentioned properties which is done by motion. Commissioner Buraczewski moved that Dave Thomas be made designated signer and Commissioner O’Dell seconded; motion carried.

ANYTHING ELSE BROUGHT BEFORE THE COMMISSION
Dave Thomas stated that he and Program Coordinator Marilyn Jones had met with a Self Sufficiency tenant at 718 West 7th Street who is behind 3 months in rental payments and has been continually delinquent. We have worked with her on numerous occasions. She resides there with her husband and child. Their rent is $525.00 per month. She has been in and out of employment and just has not been able to maintain. We agreed that she would be out of the house in 30 days and she would pay arrearage. It leaves us with a house that was part of the NSP 1 program that we need to dispose of. In order to close out the property, it needs to be deeded or sold to someone. We could deed the property to Habitat or it will have to be placed on the market and do income verifications for potential clients to assure that they meet 120% AMI going through the whole program again which would not allow us to close out NSP 1. Dave Thomas wanted to inform the Commission prior to any action taken down the road. Dave Thomas stated that there are letters documenting correspondence with the tenant and the Redevelopment’s attempts to help the tenant remedy her delinquency. Commissioner O’Dell asked if we had options to inspect for any damages. Dave Thomas stated that Roger Shields, Construction Manager had inspected the property about a week ago and it is recommended that he go back and inspect the property again. There was a family that was in a similar situation some time ago and the City basically gave them a mortgage as a remedy. They make payments on a monthly basis. If we put them in this same situation it is just going to prolong the issue and we would end up foreclosing on the property. Commissioner O’Dell and Stillson both asked what the advantage of selling the property to Habitat would be. Dave Thomas said that the options would have to be explored. Dave Thomas and Laura Raygoza stated that in a meeting with a HUD representative about a month ago, basically said rental properties were a bad idea and that we should get out of them. There will be no income generated either way for the City. The option also suggested was to offer it to a qualified applicant from our First Time Homebuyer waiting list. Dave Thomas said that it would be explored. Upon advisement of Attorney Beutter, because of the applicant occupying the home upon the application and lease approval of the Commission, there should be a motion to terminate the lease. Commissioner Buraczewski motioned that the Self Sufficiency tenant lease for 718 West 7th Street be terminated and Commissioner O’Dell seconded; motion carried.

Disposal of remnant parcels that are left. Dave Thomas has had minimal conversation with Atty. Beutter and Ken Prince regarding these parcels. Dave Thomas is under the impression that since the parcel has already been offered by public notification that we don’t have to notify the public again that there are any left. Dave Thomas posed the question “how do we market them and let people know that there are some left for sale?” Attorney Beutter said that a “for sale” sign could be put on the property. We do not know the assessed value. Dave Thomas was not sure if the sale of the property would trigger a reassessment of the replatted parcels. The City owns them and we are tax exempt. The fair market value has two appraisals on each of them. They were all determined at the same time. They are TIF properties. Any funds used would be minimal and would come out of TIF. They are remnants, some are unbuildable. The extent of marketing would be a for sale sign in the parcel and an ad in the newspaper and possibly going as far as contacting Homes and Lifestyles magazines. The Cemetery has interest in the one across the street from them and there is talk of interest by a financial institution on the one further to the North. Commissioner O’Dell motioned that Dave Thomas, Director would market the remnant parcels and Commissioner Buraczewski seconded; motion carried.

Commissioner O’Dell inquired the status of Barak Group. Dave Thomas stated that they are still seeking funding and still look forward to breaking ground in August.

Commissioner Buraczewski motioned to adjourn the meeting. Commissioner O’Dell seconded; meeting adjourned at 6:55 P.M.

 

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M. Gilbert Eberhart, President

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David B. Thomas

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Marilyn Nelums-Jones

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