HomeMy WebLinkAboutThe matter of South Bend Toy Manufacturing Company, Inc. RESOLUTION
320-72
Passed by the Common Council of the City of South Bend, Indiana,
AUGUST 14 19 72
Attest: DEPUTY City Clerk
Attest: President of Common Council.
Presented by me to the Mayor of the City of South Bend, Indiana
AUGUST 16 1972
DEPUTY City Clerk
Approved and signed by me 7 19-7
Mayor
RESOLUTION NO. 320-72
A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND, ST. JOSEPH COUNTY, INDIANA, IN THE
MATTER OF SOUTH BEND TOY MANUFACTURING COMPANY, INC.
WHEREAS, South Bend Toy Manufacturing Company, Inc. , has
submitted its intention to the Economic Development Commission of
South Bend to purchase, remodel and expand the building located at
3300 West Sample Street, in the City of South Bend, Indiana
WHEREAS, South Bend Toy Manufacturing Company, Inc. , has
submitted a statement of public service to the above Economic
Development Commission of theCity of South Bend and said Commission
has forwarded this statement of public service with their approval
and comments to the South Bend School Corporation, a copy of
which is attached, and
WHEREAS, the affirmative response and analysis of the
South Bend School Corporation has been received as presented to
the Clerk of the City of South Bend and attached, and
WHEREAS, the statement of public service by South Bend
Toy Manufacturing Company, Inc. , and the Economic Development
Commission of the City of South Bend have been submitted for approval
and comments to the Area Plan Commission of St. Joseph County and
the affirmative action and comments of the Area Plan Commission
have been received by the Clerk of the City of South Bend as
attached, and
WHEREAS, the requirements of the application as described
in the "Municipal Economic Development Act of 1965 of the State of
Indiana" as amended have therefore been met to this point, including
a projection of the number of jobs created, the estimated payroll
created and the approximation of the costs of construction, and the
impact on utilities and fire and police facilities of the City of
South Bend with the approvals of the school corporation and the Area
Plan Commission having jurisdiction of the area in which the proposed
facility is to be built, and
WHEREAS, South Bend Toy Manufacturing Company, Inc. , seeks
approximately $1, 735, 000 . 00 from an issue of revenue bonds of the
Economic Development Commission of the City of South Bend to be
signed by its Mayor and by its City Clerk and further desires to
enter into a lease of not to exceed 25 years duration to be known as
a net net net lease sufficient to pay the principal and interest of
these bonds and obtain title at the end of the lease, and
WHEREAS, by virtue of the net net net lease, the South Bend
Toy Manufacturing Company, Inc. , indicates its intention to pay all
expenses of the operation, maintenance , insurance , property taxes ,
whatever of the facility,
THEREFORE, be it resolved by the Common Council of the City
of South Bend that the statement of public service on the part of the
Economic Development Commission of the Area Plan Commission and the
South Bend City School Corporation be accepted and approved, and
THEREFORE, be it resolved that the South Bend City Common
Council authorize the Economic Development Commission of the City
of South Bend to proceed to make preliminary agreements with the
proposed lessee, the South Bend Toy Manufacturing Company, Inc. ,
in the nature of a conditional commitment to enter into a lease
with the South Bend Toy Manufacturing Company, Inc. , and
THEREFORE, be it resolved that the Economic Development
Commission of the City of South Bend, shall , as soon as the new
lease form is properly prepared, submit the same to the Clerk of
the City of South Bend to be prepared by a member of the Common
Council as a proposed ordinance for the acceptance of same and
issuance of revenue bonds to cover the amount of money needed.
Pei-'6r J. Nemet , Presi t
South Bend Cit ommon Council
FILED IN CLrPK'S OFFICE
Irene Gammon
CITY CLERK, SOUTH BEND, IND.
i & 2nd READING
COMMITTEE OF THE WHOLE aUQI 1972
PUBLIC HEARING
1"d READING
BOI APRP,0yja
REFERREa
P_ASS.EQ
Mr. Karl G. King, President
Economic Development Association
320 W. Jefferson Blvd.
South Bend, Indiana 46601
Dear Karl:
_Pursuant to our conversation, this letter states our intention to apply for financing
assistance by means of the issuance of Induustrial Revenue Bonds through the Economic
Development Commission of the City of South Bend for our proposed purchase, remodeling
and expansion of the property at 3300 W. Sample Street, South Bend, Indiana. This s
property is presently owned by the Bendix Corporation and has been vacant for ap-
proximately one year. We intend to move from our present location at 1012 S. High
Street, which is inadequate and impractical to expand to accomodate our projected
growth in sales, manufacturing, and employment. Our company is currently leasing
the High Street property AP-eth the lease exp,.rirg January 31, 1973. 1,
After thorough investigation of the possib=lities of remodeling our High Street plant
and finding excessive costs involved because of the mill tyre construction, low
ceiling heights, lack of available land, and the inherent inefficiencies of -manu-
facturing operations in multi-story buildings, we began, with the concurrence of our
parent company, the Milton Bradley Company of Springfield, Mass. to actively seek
other plant sites in the Middle West. The West Sample Street property seemed to have
the best potential locally, however, extensive remodelling was found to be necessary
to properly accommodate this property for our operations.
Following is information which we understand is desired from us as a preliminary step f
qualifying for the financing desired:
I History of the Company: This Company was started in 1874 on the old Mill Race i
in South Bend by John W. Teel and Frederick H. Badet. The original products were
croquet sets. Other action games joined the product line and toys soon followed. By i
1888 the Company had been named the South Bend Toy Manufacturing Company and moved to ?
its present location at 1012 S. High Street.
In 1895 the Company produced the first willow doll carriages to be presented in the
American market. Since that time South Bend has been the leading manufacturer of
croquet sets and doll vehicles. Recent developments have been directed into the
leisure time field and rapid growth has been experienced in the recreational and j
family-type game markets. Sales , which have doubled in the past seven years, have
prospects of continuing to increase substantially in future •years.
II„ Ownership Progression:.
Teel and Badet 1874-1888
The South Bend Toy Manufacturing Company 1888-1957
Fohrman and Doraan 1957-1958
Fohrman and Dorgan and Playskool Mfg. Co. 1958-1959
Playskool Mfg. Co. 1959-1968
Milton Bradley Co. 1968-
III. From our investigations and projections to date we can state that:
The buildings at 3300 West Sample Street exist in sound condition and to our know-
ledge there will be no conflict with the Area Plan Commission.
The burden on the Fire and Police Departments as a result of this move will not
change and there are no extensions of public sewer, water and roa3way facilities re-
quired.
I✓.t: :r,, DSO
We estimate that an a-lc:itien.al 100 people from the currently unemployed local
labor force will be nee3ed in the rl_aar future to meet our increasing sales projections.
j
IV. Analysis of Ccsts :
1. 1972-1973
Purchase or existing property at 3300 W. Sample St. $ 750,000. 6
Remodelling of Plant and Offices 350000.
,
Improve Ventilating System 40,000.
New Lumber Storage Bldg. and Dry Kilns 275,000.
New Gas Fired Boiler card Vastine System to
Utilize Dust and Shavings - Non Polluting 751000.
Roof Repair 201000.
impair R. R. Siding 5,000, 1
Relocation of Drainage Pond 25 000
Fees and Misc. Items 45,000,
Moving Costs 150,0000
$1,7351000. f
2. 1974 Construction
Finished Goods Warehouse - New Construction
150,000 sq. ft. $11500D000.
Should there be any questions or additional information required, please get in
touch with me.
Very truly yours,
Louis R. Chreist, Jr.
President
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CITY OF SOUTH BEND j
South Bend, Indiana 46601 t
Jerry J. Miller
Mayor July 28, 1972 .
ECONOMIC DEVELOPMENT '
COMMISSION OF SOUTH BEND
as3
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Mr. Frank Miles, President
Area Plan Commission
County--City Building
South Bend, Indiana
3
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Dear Mr. Miles:
Our Commission has an application from Sduth Bend Toy Manufacturing
-- Company, Inc. of South Bend, Indiana for an industrial revenue bond 1
- issue of $1, 750, 000 for the purposes of purchase, remodeling and
expansion of a facility at 3300 West Sample Street in South Bend.
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t
At the present time, this company employs approximately three
hundred fifty people and estimate that an additional one hundred
people will be needed in the near future. This increased employ-
ment would be from the currently unem loyed local labor force and 3
therefore be of no additional burden to tte school system.
It is our understanding that the utilities necessary to service this
facility are readily available and therefore there will be no additional
cost to the city by virtue of this project. Likewise, police and fire
protection requirements would not be changed from present require-
ments.
In accordance with the Economic Development Act, State of Indiana,
our Commis Sion is to forward a statement of public service to the
2. `
Area Plan Commissio
the facility is locate', n having jurisdiction over the area in which
We would appreciate your approval in-the
near future. - -
Cordially,
Karl G. King, Jr.
President
ECONOMIC DEVELOPMENT, r
KGK Jr. /nt COMMISSION OF SOUTH BElD
cc: Jerry J. Miller, Mayor
City of South Bend
- Peter J. Nemeth, President
South Bend City Council
- Charles Sweeney, Jr.
South Bend City Attorney -
Kenneth Fedder
Attorney for Economic DeveloEl«1el-It
Commission of South Bend
Louis R. Chre
ist, Jr. , President
South Bend Toy Manufacturin`i Inc. -
: :j
Attachment:
Mr. Huguenard:
This issue would help in maintaining the city's tax base and
property tax yield for the School Corporation.
J �
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CITY OF SOUTH BEND
South Bend. Indiana 46601
Jerry J. Miller July 28, 1972
Mayor
ECONOMIC DEVELOPMENT
COMMISSION OF SOUTH BEND
_ - y
Mr. Aaron H. Huguenard, Jr.
President
South Bend School Board
635 South Main Street
South Bend, Indiana
Dear Mr. Huguenard:
Our Commission has an application from South Bend Toy Manufacturing
Company, Inc, of South Bend, Indiana for an industrial revenue bond
issue of $1, 750, 000 for the purposes of purchase, remodeling and
expansion of a facility at 3300 West Sample Street in South Bend.
At the present time, this company employs approximately three
hundred fifty people and estimate that an additional one hundred
people will be needed in the near future. This increased employ-
ment would be from the currently unemployed local labor force and
therefore be of no additional burden to the school system.
3
It. is our understanding that the utilities necessary to service this
facility are readily available and therefore there will be no additional
cost to the city by virtue of this project. Likewise, police and fire
protection requirements would not be changed from present require-
ments.
In accordance With the Economic Development Act, State of Indiana,
our Commis;ion is to forward a statement of public service to the
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school corporation having jurisdiction of the area in which the
facility is located.
We would appreciate your approval in the near future.
Cordially,
Y
Karl G. King, Jr.
President
ECONOMIC DEVELOPMENT
KGK Jr. /nt COMMISSION OF SOUTH BEND
cc: Jerry J. Miller, Mayor
City of South Bend
Peter J. Nemeth, President
South Bend City Council
Charles Sweeney, Jr.
South Bend City Attorney
- Kenneth Fedder
Attorney for Economic Development
Commission of South Bend
Louis R. Chreist, Jr., President
South Bend Toy Manufacturing Co. , 'Inc. .
3
S
AREA PLAN COMMISSI®N
HOWARD BELLINGF.R, EXECUTIVE DIRECTOR
OF ST. JOSEPH COUNTY, IND. 227 W 12E9 JEFFERSON BI'VI BUILDING
227 W. JE FFF:R90N BLVD., SOUTH BEND, INDIA Nq gggpl
(219)284.9371
August 8, 1972
Economic Development Commission
Of South Bend
14th floor, County-City Building
South Bend, Indiana 46601
J
Attention: Karl King, Jr, , Re: South Bend Toy
President
Gentlemen:
The Staff of the Area Plan Commission has reviewed
the application for a proposed bond issue to permit the purchase
and remodeling and expansion of an industrial building located
at 3300 West Sample Street in the City of South Bend. We find
the site to be located on the south side of Sample Street and
is zoned for "Heavy Industrial" uses . We are pleased to report
that the proposal is consistent with the development plan for
the South Bend area.
Very truly yours,
HOWARD BELLINGER,
Executive Director
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HB:ld "
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SOUTH BEND COMMUNITY SCHOOL CORPORATION
635 SOUTH MAIN STREET SOUTH BEND, INDIANA 46623
1 Office of Superintendent August 7, 1972
Mr. Karl King, President
Economic Development Commission ,
of South Bend
County-City Building
South Bend, Indiana 46601
Dear Mr. King:
The Board of School Trustees for the South Bend Community School Corporation
endorses wholeheartedly the application from South Bend Toy Manufacturing
Company, Inc. of South Bend, Indiana for an industrial revenue bond issue of
$1 , 750,000 for the purposes of purchase, remodeling and expansion of a
facility at 3300 West Sample Street in South Bend.
The School Corporation does not consider that this project would cause any
major change in school enrollments nor bring any burden upon present school
facilities .
Sincerely,
Aaron Huguenard, P esi �_ent
Board of School Try tees
AH/mm
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A RESOLUTION SETTING FORTH THE NEED FOR ECONOMIC DEVELOPMENT
WHEREAS: The City of South Bend is still experiencing a high
unemployment situation, and
WHEREAS: South Bend Toy Manufacturing Company has indicated
an intention of closing their facilities in South Bend
therefore creating a greater unemployment situation,
NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Commission that because of insufficient employment
opportunities and insufficient diversification of industry,
the economic welfare of the city would be benefited by
approving the application by South Bend Toy Manufacturing
Company for the acquisition and leasing of existing
facilities in South Bend, Indiana.
THIS RESOLUTION ADOPTED BY THE ECONOMIC DEVELOPMENT
COMMISSION OF THE CIVIL CITY OF SOUTH BEND, INDIANA,
THIS 4th DAY OF August 1972.
r,
PRESIDENT '- KA G. KING, JR.
VICE PRESIDENT - FRED CRAVEN
SEC TARP - EU' GOqE PAJAKOWSKI
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