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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 5 Ya J CITY OF SOUTH BEND j South Bend, Indiana 46601 t Jerry J. Miller Mayor July 28, 1972 . ECONOMIC DEVELOPMENT ' COMMISSION OF SOUTH BEND as3 I i Mr. Frank Miles, President Area Plan Commission County--City Building South Bend, Indiana 3 3 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. i 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 � ,y 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 } a t . }r a i 4 f' f 2. 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 3 HB:ld " 3 i P i 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 i 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 Y