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HomeMy WebLinkAboutThe matter of Petroleum Chemicals Company and/or Overhill Manufacturing Inc. and/or Mr. and Mrs. Thomas R. Kinnucan RESOLUTION 318-72 Passed by the Common Council of the City of South Bend, Indiana, JULY 24 Attest: City Clerk Attest: '" President of Common Council. Presented by me to the Mayor of the City of South Bend, Indiana JULY 25 1972 e� /1 City Clerk Approved and signed by me Mayor RESOLUTION NO. 318-72 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, ST. JOSEPH COUNTY, INDIANA, IN THE MATTER OF PETROLEUM CHEMICALS COMPANY AND/OR OV.ERHILL MANUFACTURING INC. , ANDJOR MR. AND MRS. THOMAS R. KINNUCAN. WHEREAS , Petroleum Chemicals Company and/or Overhill Manufacturing Inc. , and/or Mr. and Mrs. Thomas R. Kinnucan have submitted their intention to the Economic Development Commission of South Bend to purchase and rehabilitate the property at 2502 Lawton Avenue , South Bend, Indiana. This property abuts the Indiana R-66 Urban Renewal Plan and Project in the Downtown South Bend, Indiana area. WHEREAS, Petroleum Chemicals Company and/or Overhill Manufacturing Inc. , and/or Mr. and Mrs. Thomas R. Kinnucan have submitted a statement of public service to the above Economic Development Commission of the City 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 Petroleum Chemicals Company and/or Overhill Manufacturing Inc . , and/or Mr. and Mrs. Thomas R. Kinnucan 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 cost of the 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, the plan meets the desire of the Redevelopment Commission of the City of South Bend, and WHEREAS, now the Petroleum Chemicals Company and/or Overhill Manufacturing Inc. , and/or Mr. and Mrs. Thomas R. Kinnucan seeks approximately $200 ,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 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 Petroleum Chemicals Company, and/or Overhill Manufacturing Inc. and/or Mr. and Mrs. Thomas R. Kinnucan indicates their 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 statment 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 Petroleum Chemicals Company and/or Overhill Manufacturing, Inc. , and/or Mr. and Mrs. Thomas R. Kinnucan, in the nature of a conditional commitment to enter into a lease with the Petroleum Chemicals Company and/or Overhill Manufacturing, Inc. , and/or Mr. and Mrs. Thomas R. Kinnucan, 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. Peter J. Nemet Presi t South Bend Ci Common Council FILFO IN CLTPK`S OFRCE Irene Gammon CITY CI FPK, C^UTH PF :r). IN") lit 1 2nd READING c/- 7 2 COMMITtEE OF THE WHOLE EU.B.UO HEARING l d'WDING Jul: 2 0 197 NOT APPROVED REFERRED. PASSED `7. 2 i s7 July 7, 1972 P �'C0NOM1C DEVELOPMENT � 3 CONiNfISSION 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 by Mr. and Mrs. Thomas R. Kinnucan for a bond issue to purchase the real estate and building located at 2542 Lawton Avenue, South Bend. The Kinnucans will probably be on the bond issue personally as officers, directors and stockholders of one or two occupant companies: -Petroleum Chemicals Company and/or Overhill Manufacturing Inc. Petroleum Chemicals Company would employ nine to twelve people and Overhill Manufacturing Inc. would employ three people with the possibility:of a rather rapid expansion and the employment of several more people. _ This building is in the Model Cities area and we assume the project should be cleared also with Mr. Charles Lennon, Executive Director. It is our opinion that the employment of these corporations would be drawn from the presently unemployed labor pool and there- fore be of no additional burden to the School Corporation. It is also our opinion that the present building is supplied i�,rith i a 2. water and sewer facilities and other utilities and therefore there would be no additional burden to the City of South Bend. We would be of the opinion that there would be no particular change in the burden on the police and fire department by the development of this building. The property tax, of course, is paid on the buildings the Kinnucans will acquire and therefore it will help increase the tax base for the City and the School Corporation. We would appreciate your approval of this project to enable us to proceed to issue bonds for its acquisition by the Kinnucans. Cordially, Karl G. King, Jr. President Economic Development Commission of South Bend KGKJr. /nt 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 Charles Lennon, Executive Director Model Cities Mr. & Mrs. Thomas R. Kinnucan 4 Y� ✓ •i July 7, 1972 ECONOMIC DEVELOPMENT ' COMMISSION OF SOUTH BEND N Mr. Frank Miles, President 8 Area Plan Commission County-City Building South Bend, Indiana Dear Mr. Miles: We have an application by Mr. and Mrs. Thomas R. Kinnucan for a bond issue to purchase the real estate and building located at 2502 Lawton Avenue, South Bend. The Kinnucans will probably be on the bond issue personally as officers, directors and stockholders of one or two occupant companies: Petroleum Chemicals Company and/or Overhill Manufacturing Inc. Petroleum Chemicals Company would employ nine to twelve people and Overhill Manufacturing Inc. would employ three people with the possibility of a rkther rapid expansion and the employment of several more people. This building is in the Model Cities area and we assume the project should be cleared also with Mr. Charles Lennon, Executive Director. It is our opinion that the employment of these corpora- tions would be drawn from the presently unemployed labor pool and therefore be of no additional burden to the School Corporation. It is also our opinion that the present building is supplied with ' water and sewer facilities and other utilities and therefore be f r � 1 2. no additional burden to the City of South Bend. We would be of the opinion that there would be no particular change in the burden on the police and fire department by the development of this building. W We would appreciate your approval of this project to enable us to proceed to issue bonds for its acquisition by the Kinnucans. ,P Cordially, Karl G. King, Jr. President Economic Development Commission KGKJr. /nt 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 Charles Lennon, Executive Director Model Cities Mr. & Mrs. Thomas R. Kinnucan a r 5 WALNUT AVENUE ELGIN, ILLINOIS 60120 312-696.4444 !1 1 May 18, 1972 V Mr. Carl King Office Engineers PETROLEUM\ 116 S. Michigan PRODUCTS South Bend, Indiana 46601 Oils Dear Mr. King: J Kindly consider this letter as a request for the Economic Grease Development Council to consider the purchase and lease of ® the real estate and building located at 2502 Lawton Avenue, Lubrication South Bend. Equipment a We have had preliminary discussions with Mr. Rosenthal of the Specialties St. Joseph Bank and Trust Company, concerning the conditions under which such an arrangement could be finalized. Mr. Rosenthal has indicated that the St. Joseph Bank would ^mow- purchase the debt instrument. Further, as I understand the terms and conditions, this arrangement would be comparable CARPAK to, and in some instances more favorable than, similar leases we have studied here in Illinois. CAR-PA K PRODUCTS We are currently negotiating for the purchase of the manufac- turing operations housed in this facility. It would be our Lock Defroster intention to continue and enlarge the present operation under a new corporate entity. Also, it appears advantageous to combine our present and newly acquiYed operations under one license Plate roof. The Lawton Avenue property lends itself to this nicely, Fasteners and after such a move was made, the present labor force of e, three people operating at the Lawton Avenue plant would be Ignition Kits increased to eighteen or twenty people. 0 We will appreciate your early action on this request. As Primary Wire further information is needed, please contact the undersigned. Cisplay Packaged Very truly yours, Specialties PETROLEUM CHEMICALS COMPANY Thomas R.R. Kinnucan President TRK/11 r PHONE (219) 232-5220 OVERHILL MANUFACTURING INC. / 2502 LAWTON STREET / SOUTH BEND,INDIANA 46628 June 24, 1972 i Mr. Carl King c/o Office Engineers , Inc . 116 S. Michigan South Bend, Indiana Dear Carl : It was a pleasure talking to you again today. Please accept this letter as our request to proceed, as rapidly as possible, with our application before the Economic Development Commission for lease arrangement on the Lawton Street property. If approved, Mrs . Kinnucan and I, personally would sign the lease , and subsequently sublease the property to both Petroleum Chemicals Co . , and Overhill Mfg, Inc . This would accomplish our goal of bringing both of these operations under one roof. Detailed financial information for Mr. & Mrs .Kinnucan, Petrol- eum Chemicals Company, and Overhill Mfg . , Inc , is on file with the St . Joseph Bank and Trust Co . However, the following in- formation is submitted for your consideration and guidance . Petroleum Chemicals Co. , currently operating from leased facil- ities in Elgin, Illinois, packages and distributes lubrication equipment to various customers nationally. Annual volume approx- imates $950,000 to $1 ,200,000 . Other than officers and office help , the company has 9 - 12 people on the payroll . Overhill Mfg . , Inc . , a new corporation, manufactures and dis- tributes portable air tanks . Current volume is approximately $120,000, with three employees . It is our intention to expand this operation considerably within the next few years . We hope the above will allow you to bring our application to a rapid and successful conclusion. If further information is need- ed, please contact either Mr . Charles Roemer or the undersigned. With best personal regards, Very truly yours, TRK:mr THOMAS R . *NXU­CAN