A plan that will keep assets of the Studebaker Autoparts Sales Corp. (SASCO) in South Bend will prompt the Redevelopment Commission to consider an agreement to terminate the lease of a facility at 410 W. Sample St., allowing the relocation of the auto parts.
In addition, the Commission will consider acquiring additional property at the northeast corner of the 140-area development area for Ignition Park, the portion of South Bend's dual-site state-certified technology park located in the former Studebaker corridor.
Both moves will enable continued demolition of outdated facilities on space designated for Ignition Park, making the entire property available for new development as early as 2011.
"These steps, although separate and distinct, have the effect of continued forward momentum for the development of Ignition Park," said Don Inks, director of economic development for the City's Department of Community and Economic Development. "In particular, the SASCO agreement will allow the building along Sample Street to be vacated early in 2010 and demolished in combination with Underground Pipe and Valve to achieve cost efficiencies."
City staff recommend the approval of a $686,000 settlement agreement with Teachers Credit Union. TCU which acquired SASCO's assets in a Sept. 15 auction, has an agreement with a private party for the sale of the auto parts inventory and related assets, which would keep the parts in South Bend and available for purchase by owners of Studebaker cars. According to SASCO's web site, the inventory includes more than 30,000 part numbers in stock for post-World War II Studebaker vehicles.
The settlement between the Redevelopment Commission and TCU means TCU would not exercise its right to a five-year renewal option of the lease. Instead, it will enable the relocation of the SASCO assets at no cost to the City. The settlement cost is less than the $965,680 economic value of the current lease. The settlement also means the Redevelopment Commission has no further responsibility for the significant costs of disposing the assets or relocating them from the current site.
The SASCO assets have been housed in the former Studebaker Engineering Building since being relocated in 2000 from a building that was demolished to make way for the construction of the St. Joseph County Jail. Both the former Engineering Building and the Studebaker Foundry (now home to Underground Pipe and Valve) are scheduled for demolition to make way for Ignition Park. Because Ignition Park could be a potential home for sensitive nanoelectronics-related technologies, City officials say it is essential to complete all demolition work near Ignition Park before businesses could be in operation.
In addition to the TCU settlement, the Redevelopment Commission will consider the purchase of the former Airgas Great Lakes Inc. pressurized tank-filling facility at 912-1002 S. Lafayette Blvd. Located along the east side of Lafayette, just south of Sample Street, the property is located at the northeast edge of the development area for Ignition Park. The business ceased operations in South Bend earlier this year.
Along with the 12-acre Innovation Park at Notre Dame, Ignition Park makes up Indiana's first two-site state-certified technology park.
Contact: Mikki Dobski, Director of Communications & Special Projects, 235-5855 or 876-1564, or Don Inks, Director of Economic Development, 235-9371
