The Warsaw Building Corporation did its part Tuesday on the leases with West Hill Development and for the Gatke warehouse.
The first matter before the Building Corporation was the resolution approving a lease and sublease with West Hill Development LLC for the third shell building at the Warsaw Tech Park.
City attorney Scott Reust, one of the three members of the Building Corporation, said having looked at the lease and sublease before Tuesday’s meeting, he believed it was in order.
Warsaw Community and Economic Development Director Jeremy Skinner explained that the Warsaw Redevelopment Commission started the process last month by approving the first form of the resolution. The city council approved their form of the resolution on Friday, and the Redevelopment Commission held a public hearing on the forms of the lease agreements Monday. By the Building Corporation approving its resolution Tuesday, that completes the process for the sublease and the master lease. The master lease is between the Building Corporation and West Hill Development, with the sublease being between the Building Corporation and the Redevelopment Commission.
Explaining the contents of the lease agreement, Skinner said, “We’re leasing 70,000 square feet of a shell building that is not currently occupied for 24 months for roughly $42,000 a month. As that space is occupied, the lease will be decreased.”
The other 30,000 square feet of the shell building is occupied by Mentor Media.
The lease between the city and West Hill Development is for a maximum of two years and $1 million.
The resolution for the lease and sublease with West Hill Development was approved by the Building Corporation.
The second and third resolutions before the Building Corporation were to start the transfer process of the Gatke warehouse property at 2321 E. Winona Ave.
The first was to transfer the property from the city, which has owned the property since 1999, to the developer, Rebar Warsaw LLC, for $1.
“You’ll see that this transfer is contingent upon them obviously financing and constructing the project as listed here,” Skinner said. The approximately $20 million project includes commercial and office space and 75 market-rate one- and two-bedroom apartments.
After the first Gatke resolution was approved, the second resolution was for the approval of the proposed forms of a lease and loan agreement with respect to the Gatke project.
The lease agreement is with Rebar for the Gatke project. The agreement is actually for the leasing of East Market Street from Argonne Road to Ind. 15. “That road is basically the value of the bond issue,” Skinner said. “As part of the bond issue that we’re going to be issuing for this project, it’s similar to what we just did” with the shell building.
He said the resolution was kind of the first step, as it will also go to the Economic Development Commission, Redevelopment Commission and city council in January.
Reust asked Skinner if he knew what the bond issue might be. Skinner said around $2.5 million. The bond issue is expected to take place in late February or early March.
The Building Corporation approved the final resolution.
In other business, the Building Corporation approved Chris Hanson, Lake City Bank, as president for the coming term, Reust as vice president and Whitney Shilling, Community and Economic Development administrative assistant, as secretary.
Hanson was given the oath of office before the start of Tuesday’s meeting.