MUNSTER | The Redevelopment Commission has sold $8.13 million in taxing district bonds to purchase five properties on the west side of Calumet Avenue between the Pepsi bottling plant and the Canadian National railroad tracks.
The properties' access would be cut off by the proposed realignment of 45th Avenue at Calumet, which is several years away, said Munster Town Manager Tom DeGiulio. The federal grants being sought for the alignment don't include funds for land acquisition, he said. The project has made it difficult for the affected buildings' owners to rent them or give their current tenants long-term leases, DeGiulio said.
The town's action will allow those operating in the businesses involved, including the Hostess/Wonder Bread outlet, to stay in place until the project to align 45th Avenue begins, he said.
"We decided to acquire them now and keep them occupied," DeGiulio said. "We can work with one- to two-year leases. All the tenants (have) been told the buildings are being acquired. After we close on them, they'll send rent checks to the town. Nobody will be problematic when construction starts."
The city, which has approved $10.5 million in redevelopment bonds to buy the properties, sold only the $8.13 million in bonds needed for the current acquisitions. Additional bonds will be sold to acquire other properties, including Munster Steel Co., needed for the project, DeGiulio said.
About $6.2 million of the current bond sale will be used to acquire the five properties, with the remainder of the money used for appraisal costs, bond insurance, debt service reserve, capitalized interest on the bonds and other costs.
Munster has offered $805,000, plus reasonable attorney fees, for the Munster Animal Hospital. The deal is expected to close soon, with the hospital relocating to a new facility to be built on the east side of Calumet north of its intersection with Main Street.
The Redevelopment Commission is offering $2.4 million, plus fees, for two properties owned by Dennis Meyers. One property is immediately south of the Pepsi plant, and the other runs parallel to and adjoins the railroad tracks. Meyers has agreed in principle to the price, DeGiulio said.
It also has a $2.2 million offer pending with Gaddis and Backnak for the firm's two properties: the Hostess/Wonder Bread store and the building currently housing Marusczak Sales & Service, DeGiulio said.
"They are interested in selling, but it's taking a little longer because the person negotiating for them isn't in the area," he said.
