City still seeks to control building site as backup plan

While a developer continues to plan a controversial high-rise student housing complex at the long-abandoned ST Semicon site, the city is still pursuing a receivership.\nIf the project falls through, the city hopes to transfer legal responsibility of the property to an Indianapolis-based developer.\nA Friday court hearing on the receivership has been pushed back, although it has not yet been rescheduled.\nThe downtown property, just north of the Justice Building at 415 N. College Ave., has sat vacant since 1991. Bloomington Investment Group Inc. purchased the site -- where ST Semicon had long manufactured electrical semiconductors -- a year later.\nThe Indianapolis-based investment group is working on a sale to Intergroup Realty Trust, a Florida-based developer. Intergroup hopes to build a nine-story apartment complex that would house 800 students.\nCity and county councilmen have spoken out against the project, contending it would be too large and lack sufficient parking. But Bloomington Mayor John Fernandez backs the Melrose Aparments proposal, and it only has to be approved by city planning boards.\nStill, the city continues its receivership proceedings as a safeguard, City Attorney Michael Flory said.\n"It's a safety net," he said. "We want to lay the legal groundwork in case this project falls through."\nThe city began its legal proceedings two years ago to transfer the property to Indianapolis-based Mansur Real Estate Service Group. While the owner would retain its title, Mansur would become the legal guardian of the property, responsible for its cleanup and renovation.\nAs receiver, Mansur would be able to turn a profit from its investment by collecting rents from development. It hopes to build an apartment complex with 50 units and some commercial space on the ground floor.\n"Mansur's interest in the site and completing the project remains very strong," Mansur Senior Vice President Bob Echols said. "With local support, we are prepared to move forward with the project." \nHad the Friday hearing taken place, Flory said the city would have finalized the receivership.\nAfter two years of legal proceedings, Bloomington Investment Group is now cleaning up hazardous chemical waste that ST Semicon left behind, attorney Bruce McTavish said. The cleanup -- supervised by the Indiana Department of Environmental Management -- should be finished by late June. \nFlory said getting the site cleaned up is the city's first priority. But the case can still be made for a receivership, he said.\n"The building's falling apart," he said. "It's still a threat to public health and safety. And we want to make sure we have all our options on the table."\nThe city sought a continuance on the Melrose Apartment petition until the Board of Zoning Appeals' May meeting. Fernandez, who calls the site an "eyesore," said he hopes the developer can work out differences with zoning officials on issues such as density and parking.\nThe zoning board serves as a quasi-judicial body, and the current proposal doesn't comply with city code. But both sides have indicated they would be willing to compromise.