[Southsider2k12]

http://www.thenewsdispatch.com/articles/20...90540623247.txt

Commission reaches agreement to purchase Warren Building

By Tim Moran
Staff Writer
Published: Tuesday, July 12, 2011 3:35 PM CDT
MICHIGAN CITY — The Redevelopment Commission has reached an agreement with the O’Brien family, the current owners of the Warren Building, on its purchase, Commission Attorney Michael Bergerson said at the commission’s Monday night meeting.

Bergerson said the agreement with principal owner Peter O’Brien has been reached, and he is waiting for a written agreement from an attorney from Artspace.

“That would give us comfort in closing out the purchase, knowing that we will have a final sale to Artspace,” Bergerson said.

A contract between the Redevelopment Commission and Artspace is expected within a few days.

*
“That will include what was spent to acquire the Warren Building and also the potential carrying cost until the time Artspace takes over,” Bergerson said.

Last month, the Michigan City Common Council unanimously agreed to set aside $600,000 for the building to be purchased by the Commission.

Once the purchase agreement is made with Artspace, the Minneapolis-based non-profit organization will work on setting up 30 spaces for artists to live in the building located on Franklin Street in the current Uptown Arts District.

Also, the commission agreed to table discussion of a funding request for a kiosk to be placed in Franklin Square.

Commission member Hesham Khalil, who is also the president of the Michigan City Mainstreet Association, said more information would be available for discussion at the next meeting scheduled for Aug. 8.

The funding request is currently slated for $10,000.

[Southsider2k12]

http://thenewsdispatch.com/articles/2011/0...dc127654115.txt

Commission disclosed the purchase price

Published: Tuesday, August 30, 2011 5:08 PM CDT
This is to inform those listening to a program broadcast over the local airways Saturday morning that the assertion that the City Council passed the resolution approving the purchase of the Warren Building by the Redevelopment Commission without disclosing the purchase price is a total fabrication.

In his presentation of the resolution, Redevelopment Attorney Michael Bergerson explicitly stated that the price was $950,000 and that an agreement was in place for Art Space to repurchase it at a price of $970,000.

I encourage everyone that would like to be informed about this project to read the minutes of the Council and Redevelopment meeting at which it was discussed, view the recordings of these meetings and the public hearings, and/or talk to someone who was actually in attendance.

Ken Behrendt

*
President

Redevelopment Commission

Michigan City, IN

[Tim]

So - the city bought at 950k and sold it to Art Space for 970k? Is that right?

[Southsider2k12]

http://thenewsdispatch.com/articles/2012/0...8c783351409.txt

A slight setback: On its first try, Artspace fails to make the cut for tax credits

By Tim Moran
Staff Writer
Published: Friday, February 24, 2012 5:08 PM CST
INDIANAPOLIS — The Michigan City Artspace project will have to wait at least one more year to get under way after the project was not selected as one of 14 approved for tax credits by the Indiana Housing and Community Development Authority Thursday morning.

With the IHCDA listing the reason for denial being “market demand,” improvements on the city’s Warren Building will have to wait at least another year after an updated application is sent for consideration a second time.

“It was a highly competitive process,” said Emily Duncan, a spokeswoman for the IHCDA. “We are excited about the projects that are going through – (Thursday) we allocated $12 million for those projects.”

The Artspace project was one of 53 applications not approved for the tax credits that Michigan City Redevelopment Commission President Ken Behrendt previously stated was necessary before the commission turns the property over to the Minneapolis-based group that works on housing artists in similar communities nationwide.

*
“We knew it wasn’t a sure thing but we were trying to buck the trend,” said Behrendt, who was in Indianapolis alongside former Michigan City Mayor Chuck Oberlie when the credits were announced. “When they announced there were 67 applicants, I did prep myself for what was to come.”

Duncan said the 67 applications the IHCDA received had requested a total of $58 million in credits.

“We based it on a scoring blueprint, and the higher scores were accepted,” she said, noting that the Artspace project received a 130.5 tally, which was nearly 10 points fewer than the “Historic Rushton Apartments” project in South Bend that was accepted with a 139 score.

On the local level, reactions varied from extreme disappointment to optimism that next year’s Artspace application will be approved and the project will eventually take shape.

“We are disappointed,” said Carolyn Saxton, executive director for the Lubeznik Center for the Arts. “But we know this is not the end and that it is not unusual for these requests to be denied the first time.”

At-Large Councilman Tim Bietry echoed the thought.

“We were disappointed – but it isn’t anything we did not anticipate,” he said. “Artspace has done projects in 30 different states and many of them were rejected the first time as well. Generally when they file the next year, they are approved.”

But even though second-time approval is the norm, Bietry did say the city will work with Artspace “even harder” on next year’s application.

If the credits had been approved, many art galleries and businesses on Franklin Square (between Fourth and Ninth streets) would be looking forward to the Warren Building artists quickly being welcomed into what already is an artist haven – especially on the first Friday of every month.

Marilynne Besse, one of the owners of Prince Galleries, also was disappointed after hearing Thursday’s outcome.

“We were looking forward to them starting work this spring,” she said while looking across the street at the Warren Building – which will, at one point, house a colony of 30 or more artists in Artspace.

“It’s sad news,” she said.

Angela Samila, who owns Revive Consignments, a clothing store in the heart of the Uptown Arts District, said she was “hugely disappointed.”

“This area has been looking forward to it,” she said. “But we look forward to prospering anyway and hoping it happens soon.”

First Ward Councilman Richard Murphy, who introduced a council ordinance in 2011 in support of the idea championed by the Redevelopment Commission, said despite Thursday’s denial, Artspace in Michigan City is “no doubt the best project in the state when it comes to dollar for dollar economic growth.”

“We were prepared for either a celebration or getting right back to work and that’s what we’ll do,” he said.

Behrendt and Bietry said they both plan to meet with the Artspace developer and a member of the IHCDA to “decipher where we came up short.”

Bietry alluded to the possibility of a workshop between the city and Artspace this spring on how best to move forward.

“We hope many of the Franklin Street artists and members of the public are there,” he said.

[Southsider2k12]

http://thenewsdispatch.com/articles/2012/0...be971868623.txt

Artspace should try again for tax credits

Published: Saturday, February 25, 2012 5:08 PM CST
The Michigan City Artspace project took a punch, but not a knockout blow Thursday with the announcement that it missed millions in tax credits by just about 10 points on a rating scale by state officials.

As those pursuing the project said, it was just the first try.

Carolyn Saxton, executive director for the Lubeznik Center for the Arts, said "we know this is not the end and that it is not unusual for these requests to be denied the first time."

The Artspace project was one of 53 applications seeking tax credits that are necessary before the Michigan City Redevelopment Commission turns the property over to Artspace, a Minneapolis-based group that works on housing groups of artists in similar communities nationwide.

Click here to find out more!
Organizers hope to house a colony of 30 or more artists in Artspace in the Warren Building, making it a centerpiece of the Uptown Art District.

We agree with First Ward Councilman Richard Murphy's comment that despite the setback on Thursday, Artspace in Michigan City is "no doubt the best project in the state when it comes to dollar for dollar economic growth.

Murphy said the city was prepared for a celebration or getting back to work to get the tax credits next year.

"And that's what we'll do," he said.

We hope organizers come up with a successful plan for next year so the Artspace plan will come to fruition in 2013.

[Southsider2k12]

So what happens to the purchase if they don't get this grant money? Is the City out the money?

[mcstumper]

Lets hope there is some sort of restitution owed to the city if Artspace backs out of the purchase agreement.

If not, then I would imagine that since the city has bought the building it would have to look for another buyer. Worst case scenario would be the city fails to find another interested party and has to eventually demolish the building and sell the lot. I doubt the proceeds for the sale of the lot would cover the demo costs, so in that case... yes, the city would be out the original purchase money.

Let me just state that I hope with all my heart that this works out with Artspace and that in a year we are celebrating the groundbreaking on the renovation.

[CSchwanke]

Lets hope there is some sort of restitution owed to the city if Artspace backs out of the purchase agreement.

What purchase agreement? There is not one that I could find through the clerks office or the planning department today. The Artspace people can walk at anytime............

[Southsider2k12]

What purchase agreement? There is not one that I could find through the clerks office or the planning department today. The Artspace people can walk at anytime............

Geesh. That's not much for due diligence on behalf of the taxpayers it is? Well I had hoped that this would be a successful project, now I really, really hope it is... Otherwise we are out a million dollars.

[Southsider2k12]

Work is starting!

[Southsider2k12]

http://thenewsdispatch.com/articles/2012/0...ef984584443.txt

Art to be displayed outside Warren Building

Jacob Stachowski, a junior at the A.K. Smith Career Center, works with instructor Terry Hektoen preparing to cut lumber for the frames for the display cases. Photo by Julie McClure
By Deborah Sederberg
Staff Writer
Published: Thursday, May 17, 2012 5:07 PM CDT
MICHIGAN CITY — Soon, the brown painted plywood sheets boarding up the front of the Warren Building, 717 Franklin St., will be replaced with an art display site.

Working closely with Chris Grohs, owner of the Walnut Ink gallery and Terrawood Design Company, students in the building trades class at La Porte County Career and Technical Education Center at the A.K. Smith Center are making the transformation happen.

Grohs expects the space to be displaying art within a month.

Materials were provided by the Michigan City Redevelopment Commission and Marquiss Electric is providing lighting for the space, Grohs said.

Terry Hektoen, building trades teacher, said the art areas, which are built into former window spaces, will be framed in corrugated metal.

Altogether, some 15 students are working on the project. Elizabeth Privoznik, a senior at Michigan City High School who hopes to attend Purdue University North Central to study construction technology, said she enjoys working outside the classroom.

David Higginbotham, another MCHS senior and a member of the Michigan City Robotics Team, said he too enjoys working on this project. "It's nice to get out into the community," he added.

"This is great," said Megan Grzelak, a junior at South Central High School, in describing the Warren building project. Her other building experience was in building a storage shed with her dad at her home. "That was a good learning experience," she said of the stick-built project.

The Indiana Housing and Community Development Authority this year failed to approve tax credits which would help Artspace to renovate the old Warren Building into residence apartments for some 30 artists, but redevelopment authorities and others hope the project will be approved by the state next year.

[CSchwanke]

New pictures from inside the Warren Building are here.

http://s27.photobucket.com/albums/c153/nov...ren%20Building/

[Ang]

Looks like they got their work cut out for them. Thanks for the link.

[Tim]

Holy crap - that looks like the inside of the Titanic! But the building does look sound. I know nothing of construction - but it does look like hope is not unfounded.

[Southsider2k12]

That's as bad, or worse, than it looked from what you could see from the open windows on the outside.

[Southsider2k12]

New pictures from inside the Warren Building are here.

http://s27.photobucket.com/albums/c153/nov...ren%20Building/

Oh and thanks for posting those!

[taxthedeer]

http://thenewsdispatch.com/articles/2012/0...8c783351409.txt

A slight setback: On its first try, Artspace fails to make the cut for tax credits

By Tim Moran
Staff Writer
Published: Friday, February 24, 2012 5:08 PM CST
INDIANAPOLIS — The Michigan City Artspace project will have to wait at least one more year to get under way after the project was not selected as one of 14 approved for tax credits by the Indiana Housing and Community Development Authority Thursday morning.

With the IHCDA listing the reason for denial being “market demand,” improvements on the city’s Warren Building will have to wait at least another year after an updated application is sent for consideration a second time.

“It was a highly competitive process,” said Emily Duncan, a spokeswoman for the IHCDA. “We are excited about the projects that are going through – (Thursday) we allocated $12 million for those projects.”

The Artspace project was one of 53 applications not approved for the tax credits that Michigan City Redevelopment Commission President Ken Behrendt previously stated was necessary before the commission turns the property over to the Minneapolis-based group that works on housing artists in similar communities nationwide.

I was around this time a year ago that the Redevelopment Commission application was denied funding downstate for the Artspace Project to move forward.

Does anybody know when we will find out if a second application will be apporved or denied?

[chuck]

The board meets February 28 in Indianapolis.

[MCRogers1974]

The board meets February 28 in Indianapolis.

http://www.insideindianabusiness.com/newsitem.asp?ID=58204

It appears as though the grant request has been denied again.

State Awards Tax Credits to Housing Projects

InsideINdianaBusiness.com Report

Twenty multi-family housing developments throughout Indiana will receive $14 million in rental housing tax credits. The decision from the Indiana Housing and Community Development Authority will help support construction, rehabilitation and preservation projects designed to provide affordable housing options.

February 28, 2013

News Release

Indianapolis, Ind. -- Lt. Governor Sue Ellspermann announced today that the state is awarding more than $14 million in rental housing tax credits to twenty multi-family housing developments throughout Indiana. Project activities include new construction, rehabilitation, conversion of existing structures, and the preservation of historic buildings funded through the Internal Revenue Service Section 42 Rental Housing Tax Credit (RHTC) program.

The Indiana Housing and Community Development Authority (IHCDA) administers and manages the federal credits, which provide incentives for private developers to further the affordable housing choices available throughout Indiana. The 2013 RHTC allocation totaling $14.3 million will fund nearly 800 housing units and could leverage up to $130 million in private development capital.

“Through the rental housing tax credit program, we are able to leverage federal and state dollars to enter into partnerships with development corporations, expanding the local tax base and add not only additional affordable housing options, but give a boost to our local economies as well,” said Lt. Governor Ellspermann, who chairs the Indiana Housing and Community Development Authority (IHCDA).

In November of 2012, IHCDA received sixty-one RHTC applications requesting more than $51.7 million in tax credits and over $18 million in supplementary IHCDA funding. A total of twenty developments were approved to receive the tax credits and twelve of the selected developments will receive nearly $7 million in additional IHCDA financing.

Developments receiving 2013 RHTC awards (and in some cases, additional IHCDA funding) include:


Allen
Randall Lofts
$674,246

Blackford
The Villages at Van Cleve
$520,000
$700,000

Cass
McKinley School Apartments
$621,197

Decatur
Historic Greensburg Square
$763,139
$800,000

Delaware
Walnut Commons
$777,236
$700,000

Elkhart
Hawks Arts and Enterprise Center
$635,014

Gibson
Prince Street Cottages
$588,940

Henry
Historic Jennings Apartments
$355,341

Knox
Clark’s Crossing
$1,015,863
$695,000

Madison
Senior Housing at Anderson YMCA
$434,419

Marion
Clifton Square
$1,091,084
$500,000

Marion
Merici Village
$326,000
$400,000

Marion
The Retreat on Washington
$1,249,525

Marion
The Point on Fall Creek II
$782,514

Pike
Downtown Terrace
$728,460

Ripley
RomWeber Flats II
$625,484
$600,000

Switzerland
Valley Apartments
$272,593

Vanderburgh
Cedar Trace
Senior Apartments
$638,069

Vermillion
Meadow Park Apartments
$764,500
$700,000

Vigo
Warren Village
$1,500,000
$500,000

Source: The Indiana Housing and Community Development Auth

[Southsider2k12]

Wonder how many more tries there will be before we are stuck with this lemon?