Gatke Property Developer Talking With Three Tenants
December 6, 2018 at 5:35 p.m.
Gatke Property Developer Talking With Three Tenants
By Dan [email protected]
Nothing is definite yet, but the city has been working with a developer, Michael Kinder and Sons, of Fort Wayne, and is now in the midst of finalizing a draft development plan between the firm and the redevelopment commission that would hinge on participation of several tenants.
On Monday, City Planner Jeremy Skinner released a tentative development plan with the commission that would outline each party’s role.
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Zach Kessie, director of business development for Kinder and Sons, met with the redevelopment commission Tuesday and said they are working with three entities that are interested in being tenants.
He declined to identify the groups, but they are looking at a mix that includes “two completely different tenants that have some synergies together.”
Possible redevelopment could include commercial or light industrial uses, but an agreement reached nearly 20 years ago when the land was designated as a brownfield cleanup site prohibits residential use, Skinner said.
Letters of intent are being worked on by Kinder and Sons with the potential tenants, Kessie said.
The proposed agreement between Kinder and Sons and the commission sets forth a two-phase project, the first of which would commence by May 1.
Under the plan, the developer pledges to invest a total of $7.5 million in the property. If the plan works out, the city would sell the land for $1.
The city is offering to demolish two other buildings associated with the property in exchange for development.
The property is somewhat out of sight. It is north of the elevated railroad tracks and south of Durbin Street and along McKinley Street.
Kessie said they’d also like to work out an agreement with the city in which some of the “increment” captured by the city through its tax increment finance district can be used in some of the company’s financing plan.
Skinner was asked how confident he is about a plan coming together.
“I’m confident that the people who want to be in there are interested. The question is, can the financing work? That’s what we’ll find out in the next month,” Skinner said.
The building was acquired by the city redevelopment commission in 1999 after sitting empty for years.
The city used grant money to pay for cleanup of the site soon after the acquisition.
The city has not sunk any money into the development plan so far.
Estimates for the cost of demolishing the buildings have ranged from $200,000 to $400,000, but city officials have been leary of spending that kind of money without a concrete plan for reuse.
“Working with the developer is really a win for both of us, hopefully,” said Tim Meyer, president of the commission.
In August, the city’s plan commission approved a request to divide the property into two lots.
The move makes it easier to apply for grants that could be used for demolition of two buildings nearest the railroad tracks.
Nothing is definite yet, but the city has been working with a developer, Michael Kinder and Sons, of Fort Wayne, and is now in the midst of finalizing a draft development plan between the firm and the redevelopment commission that would hinge on participation of several tenants.
On Monday, City Planner Jeremy Skinner released a tentative development plan with the commission that would outline each party’s role.
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Zach Kessie, director of business development for Kinder and Sons, met with the redevelopment commission Tuesday and said they are working with three entities that are interested in being tenants.
He declined to identify the groups, but they are looking at a mix that includes “two completely different tenants that have some synergies together.”
Possible redevelopment could include commercial or light industrial uses, but an agreement reached nearly 20 years ago when the land was designated as a brownfield cleanup site prohibits residential use, Skinner said.
Letters of intent are being worked on by Kinder and Sons with the potential tenants, Kessie said.
The proposed agreement between Kinder and Sons and the commission sets forth a two-phase project, the first of which would commence by May 1.
Under the plan, the developer pledges to invest a total of $7.5 million in the property. If the plan works out, the city would sell the land for $1.
The city is offering to demolish two other buildings associated with the property in exchange for development.
The property is somewhat out of sight. It is north of the elevated railroad tracks and south of Durbin Street and along McKinley Street.
Kessie said they’d also like to work out an agreement with the city in which some of the “increment” captured by the city through its tax increment finance district can be used in some of the company’s financing plan.
Skinner was asked how confident he is about a plan coming together.
“I’m confident that the people who want to be in there are interested. The question is, can the financing work? That’s what we’ll find out in the next month,” Skinner said.
The building was acquired by the city redevelopment commission in 1999 after sitting empty for years.
The city used grant money to pay for cleanup of the site soon after the acquisition.
The city has not sunk any money into the development plan so far.
Estimates for the cost of demolishing the buildings have ranged from $200,000 to $400,000, but city officials have been leary of spending that kind of money without a concrete plan for reuse.
“Working with the developer is really a win for both of us, hopefully,” said Tim Meyer, president of the commission.
In August, the city’s plan commission approved a request to divide the property into two lots.
The move makes it easier to apply for grants that could be used for demolition of two buildings nearest the railroad tracks.
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