SRC Moving Towards Apartment Purchase

(posted May 29)

The Speedway Redevelopment Commission is placing $100,000 in a refundable escrow account as part of their negotiations to purchase International Village apartments for an undisclosed price. The commission passed a resolution at its May 28 meeting to start the due diligence process to purchase the property from Resource Real Estate. The SRC has until July 20 to decide if they want to purchase the property, with a possible closing set for August 13.

The SRC would assume responsibility at closing to manage the apartment complex. Executive Director Scott Harris expected the commission might need to hire a management company to run the complex, but until then "It is still business as usual," for the current owners. Harris said the company would continue to enter into lease agreements and notify tenants of the potential sale.

Although the SRC has not finalized its master plan for redevelopment area two, which encompasses the complex, Commissioner Benny Grove said "We have to move now." He was concerned real estate prices would go up.

Commissioner Nancy Lawrence said that public input at last August's charette recommended the complex be "repurposed."

Harris plans to send out request for proposals next week, with a due date of June 26. Harris said the SRC's proposed purchase price could not be disclosed because it could skew future offers from developers in the RFP process. He wanted a working group comprised of the town manager, town council and SRC members to evaluate the proposals.

The commission also voted for a not-to-exceed $50,000 feasibility study to cover appraisals, environmental, title search and survey costs. The SRC engaged legal guidance from Baker and Daniels Attorney Scott Chinn to enter into the potential real estate deal.

Dr. Terry Reed, representing the school district, said the school board would discuss fiscal impact issues at its next meeting. He said only 36 students from the apartments attend Wheeler Elementary, but did not disclose how many students attend the high school and junior high.

Commissioner Ron Fisher said "This is not going to be an easy ride, but then on the other hand, this is what this commission is for".