Master Transmission - City Pays $200,000 over value

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Master Transmission - City Pays $200,000 over value

Postby Ray Gun » Sun May 27, 2007 6:35 pm

C.P. commission buys property for $200,000 over appraised value
Officials say public benefit outweighs the cost

CROWN POINT | City officials have long considered Master Transmission a blight on Crown Point's downtown.

On Wednesday night, the Crown Point Redevelopment Commission unanimously approved the purchase of the property at 121 N. Main St. for nearly $200,000 more than its appraised value.

"Just looking at it you can see it's not the best use (of the property)," said Rob Gardner, president of the commission. "But you can't just force someone to turn over the key."
Two appraisals completed last year pegged the property at $128,000 and $130,000, Assistant City Attorney Pat Schuster said.

The Redevelopment Commission is buying it for $325,000 using taxpayers' money from the tax increment financing district. The district is a tool for Crown Point to capture increases in tax value from a certain area and reinvest it into emphasis on the revitalization of the square.

"This property has been an eyesore for a long time," Mayor Dan Klein said. "This (sale) will change the whole northern part of Main Street and enhance what we already have there."

The property will be owned by the Redevelopment Commission, not the city.

Gardner said the commission will put Master Transmission up for public bid as soon as possible after the deal is closed.

He said he does not expect to sell the property for as much as the commission paid for it.

"To get the property from its current condition to something the community can be proud of takes money," Gardner said. "It will increase the overall value of the community and neighbors."

New Town, LLC, which is developing a multimillion-dollar project on both sides of the Main Street corridor, is expected to bid on the property. Plans show the Master Transmission property as part of a business, office and condo development.

"We are really excited to be working with the Redevelopment Commission," said developer Tom Fleming, who is working on the project.

Schuster said the owner, Ron Uylaki, being in bankruptcy contributed to the high cost of the property. Schuster had to seek the approval of a bankruptcy trustee to ensure sale of the property would go through.

Gardner said Uylaki absolutely was not interested in selling the land at appraised value. He said the public benefit that will come from revitalization of the distressed Master Transmission property is what redevelopment is all about.

Date posted online: Thursday, May 24, 2007
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Postby rock star » Wed Aug 15, 2007 9:34 pm

Commission OKs $194,000 loss on property deal

Developer questions stipulation he not ask for TIF benefits

CROWN POINT | Developer Tom Fleming secured an "integral" piece of his proposed New Town West development from the Crown Point Redevelopment Commission on Monday night.

The commission voted to accept Fleming's $131,000 bid for the Master Transmission property at 121 N. Main St. The commission bought the property for $325,000 in May.

Commission President Rob Gardiner and Commissioner Bob Wilczynski voted in favor of the motion. City Councilman Bob Corbin, who is on the commission, voted against it.
"We have a valuable piece of property and good property values in and around town," Corbin said. "As far as I'm concerned, I would view this as a first offer."

Two appraisals completed last year pegged the property at $128,000 and $130,000. The Redevelopment Commission paid for the land using $325,000 of taxpayers' money from the tax increment financing district.

Gardiner and Wilczynski overrode Corbin's concerns and accepted New Town LLC's bid, contingent on Fleming not asking for any more TIF money for either of his New Town developments.

"We should consider the scope of the project, its size and the number of locations," Gardiner said.

He said selling the property at a $194,000 loss is cheaper than what it would cost to approve facade grants for the project.

New Town LLC's multimillion-dollar projects are slated to transform either side of Main Street, just north of the square.

The $3.5 million project on the west side of Main Street will have a mix of retail, office and condo space. The Crown Point Historic Preservation Commission unanimously approved five fronts for the project last week.

"The property in question ... is integral to advancing the entire New Town Development project," Fleming said in a letter to the Redevelopment Commission.

He asked commissioners to consider the time and thousands of dollars he invested in planning the New Town West project when they looked at his bid.

Economic Development Director Eric Hammond also pointed out underground storage tanks on the property that may pose a problem.

Fleming's original bid said he would not ask for any more redevelopment money for the New Town West portion of his development. Fleming said he will have to think about accepting the Redevelopment Commission's provision that he not ask for TIF money for New Town East either.

Date posted online: Tuesday, August 14, 2007
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Postby Kung Fu Fighter » Mon Aug 20, 2007 7:03 pm

This seems like an insider deal to me. I am glad to see Master Transmission leave the square. Those good ole boys had that place lookin like hillbilly city. :oops:
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