Agreement Amendment No Longer Holds Matthews Responsible For Mixed-Use Building
March 6, 2023 at 11:33 p.m.
Agreement Amendment No Longer Holds Matthews Responsible For Mixed-Use Building
By David [email protected]
The Warsaw Redevelopment Commission approved the amendment Monday.
The second phase of the project is the mixed-use building, with a capital investment of approximately $5 million, where the former Indiana American Water Co. building once stood at the end of Buffalo Street.
The first phase of the project consists of a residential development with a capital investment of approximately $15.6 million. While it is eventually to include 30 townhomes and mews, only about seven have been built to date. The city and Matthews entered into the agreement May 2, 2016.
The Redevelopment Commission, after approving the second amendment to the agreement, also approved a claim from Matthews Warsaw LLC for $159,574.31.
In presenting the second amendment to the agreement Monday to the commission, Warsaw Community Economic Development Director Jeremy Skinner reminded them he presented the first amendment to them about six months ago.
“At the time, I presented pretty much this language outside of what we hadn’t negotiated, which was the cost to the city for amending our agreement. And by costs I mean, there was work that was done. And in discussing the work that was done with Matthews, we came to an agreement on that $159,574.31. And that work included the demolition of the property, both Phase I and Phase II environmental study that was done on the property and then there was a little bit of asbestos remedy that was done during the demolition,” Skinner said.
He said those were the three things the city agreed to pay for and they came up to a total cost of $159,574.31. Matthews sent all the invoices to Skinner and Skinner said he contacted all the businesses to make sure they were paid for work that was done.
Skinner recommended the commission approve the agreement “which in essence removes him from the mixed-use development on Buffalo Street and does not change Phase I, which is the townhomes and mews,” which Matthews is still obligated to complete. The city will seek another developer to complete the mixed-use building project.
Skinner said the city is paying for work that was done that the city would have had to do regardless of whether or not Matthews developed the property or not. “So if we did not have him as a developer, we would have had to complete the demolition, remove any asbestos or lead as part of that demolition and, on Phase I and Phase II, which would allow us to present that to a future developer. Which just reduces the cost in the future for us to partner with someone to develop that site,” he said.
Skinner said Matthews signed off on the agreement Monday morning.
In other business, the Redevelopment Commission:
• Approved a change order with HRP Construction Inc. on the Airport Road lift station and force main for an increase of $174,312.99. The original contract price was $1,727,803, and the change order will increase that to $1,902,115.99.
Skinner indicated the bulk of that change order - $55,930 - was due to the removal of trash. A section where the work is being done used to be an old dump and that trash has to be dug up and relocated to a certified landfill.
• Approved the other claims for March, including $2,584 to A & Z Engineering for ongoing engineer work on CRs 300N and 200W; $2,897.60 to Wessler Engineering for ongoing engineering work for the Airport Road lift station project; $18,170 to Baker Tilly for professional services for a number of projects; $170 to the Times-Union for a subscription; $360 to Emans Engineering for the lift station on Corridor Drive; $75 to the Kosciusko County Recorder’s Office for recording documents associated with the Anchorage Road improvement project; $1,448 to Graycraft Signs for Warsaw Tech Park wayfinding signs; and $43.44 to the Times-Union for the redevelopment annual report advertising.
• Was presented with the financial report for 2023 to review before the April 10 commission meeting. The report reviews the Redevelopment Commission’s and Redevelopment Authority’s actions in 2022. The report will be presented publicly at the April meeting.
The Warsaw Redevelopment Commission approved the amendment Monday.
The second phase of the project is the mixed-use building, with a capital investment of approximately $5 million, where the former Indiana American Water Co. building once stood at the end of Buffalo Street.
The first phase of the project consists of a residential development with a capital investment of approximately $15.6 million. While it is eventually to include 30 townhomes and mews, only about seven have been built to date. The city and Matthews entered into the agreement May 2, 2016.
The Redevelopment Commission, after approving the second amendment to the agreement, also approved a claim from Matthews Warsaw LLC for $159,574.31.
In presenting the second amendment to the agreement Monday to the commission, Warsaw Community Economic Development Director Jeremy Skinner reminded them he presented the first amendment to them about six months ago.
“At the time, I presented pretty much this language outside of what we hadn’t negotiated, which was the cost to the city for amending our agreement. And by costs I mean, there was work that was done. And in discussing the work that was done with Matthews, we came to an agreement on that $159,574.31. And that work included the demolition of the property, both Phase I and Phase II environmental study that was done on the property and then there was a little bit of asbestos remedy that was done during the demolition,” Skinner said.
He said those were the three things the city agreed to pay for and they came up to a total cost of $159,574.31. Matthews sent all the invoices to Skinner and Skinner said he contacted all the businesses to make sure they were paid for work that was done.
Skinner recommended the commission approve the agreement “which in essence removes him from the mixed-use development on Buffalo Street and does not change Phase I, which is the townhomes and mews,” which Matthews is still obligated to complete. The city will seek another developer to complete the mixed-use building project.
Skinner said the city is paying for work that was done that the city would have had to do regardless of whether or not Matthews developed the property or not. “So if we did not have him as a developer, we would have had to complete the demolition, remove any asbestos or lead as part of that demolition and, on Phase I and Phase II, which would allow us to present that to a future developer. Which just reduces the cost in the future for us to partner with someone to develop that site,” he said.
Skinner said Matthews signed off on the agreement Monday morning.
In other business, the Redevelopment Commission:
• Approved a change order with HRP Construction Inc. on the Airport Road lift station and force main for an increase of $174,312.99. The original contract price was $1,727,803, and the change order will increase that to $1,902,115.99.
Skinner indicated the bulk of that change order - $55,930 - was due to the removal of trash. A section where the work is being done used to be an old dump and that trash has to be dug up and relocated to a certified landfill.
• Approved the other claims for March, including $2,584 to A & Z Engineering for ongoing engineer work on CRs 300N and 200W; $2,897.60 to Wessler Engineering for ongoing engineering work for the Airport Road lift station project; $18,170 to Baker Tilly for professional services for a number of projects; $170 to the Times-Union for a subscription; $360 to Emans Engineering for the lift station on Corridor Drive; $75 to the Kosciusko County Recorder’s Office for recording documents associated with the Anchorage Road improvement project; $1,448 to Graycraft Signs for Warsaw Tech Park wayfinding signs; and $43.44 to the Times-Union for the redevelopment annual report advertising.
• Was presented with the financial report for 2023 to review before the April 10 commission meeting. The report reviews the Redevelopment Commission’s and Redevelopment Authority’s actions in 2022. The report will be presented publicly at the April meeting.
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