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Home My WebLink About2. Minutes 12/4/09SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING December 4, 2009 10:00 a.m• 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Ms. Stephanie Spivey Members Absent: Ms. Marcia Jones, President Legal Counsel: Mr. Charles S. Leone, Esq. Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. Robert Mathia, Economic Development Specialist Mr. David Relos, Economic Development Specialist Mr. Jeff Vitton, Economic Developlllent Specialist Ms. Debrah Jennings, Property Manager Others Present: 2. APPROVAL OF MINUTES Mr. Tom Price, Mayor's Office Mr. Jeff Pal-rott, South Bend Tribune Ms. Rita Kopala Ms. GlendaRae Hernandez Ms. Jamie Ruiz, CB Richard Ellis Ms. Mo Miller, Prism Science Ms. Amber Zebell, Prism Science Ms. Kaye Trowbridge Ms. Sue Kinnucan Mr. Tom Kinnucan Ms. Oletha Jones A. Approval of Minutes of the Regular Meeting of Friday, November 20, 2009. Upon a motlOn by MS. Kmg, S2COnded by Mr. COMMISSION APPROVED THE MINUTES OF THE DOWrieS and Unari11110US1y CaI-1'led, the C01111I11SSlon REGULAR MEETING OF FRIDAY, approved the Minutes of the Regular Meeting of NOVEMBER 20, 2009 Friday, November 20, 2009. South Bend Redevelopment Commission Regular Meeting -December 4, 2009 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted December 4, 2009 for approval. 305 FUND SBCDA BOND Holladay Corp 127,497.55 WNIT Facade renovation 324 AIRPORT AEDA Crowe Horvath 7,169.81 Professional Services Tri County News 52.68 Legal Publication South Bend Tribune 136.32 Legal Publication SBD Reprographics 301.98 Professional Services Michaels Appraisal Services 700.00 Indiana Ave Blue Waters Group 5,911.00 Ignition Park St. Joseph County Treasurer 59,998.10 Property taxes 420 FUND TIF DISTRICT-SBCDA GENERAL Ampco Parking Systems 2,272.66 Surface parking lot expenses Crowe Horvath 2,212.48 Profession Services Rendered AT&T 6.07 LaSalle Hotel Rose Pest Solutions 93.00 LaSalle Hotel St. Joseph County Treasurer 2,799.98 Property taxes 422 TIF DISTRICT WEST WASHINGTON Crowe Horvath 689.89 Professional Services 426 FUND SOUTH CENTRAL MEDICAL AREA Crowe Horvath 328.47 Professional Services 429 Northeast Development TIF Area Crowe Horvath 1,499.50 Professional Services 430 FUND Southside Dev TIF Area# 1 Crowe Horvath 3,585.11 Professional Services 435 Douglas Road TIF Crowe Horvath 64.74 Professional Services Selge Construction 303,523.10 Douglas Road Construction $ 518,842.44 Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved the Claims submitted December 4, ?009, and ordered checks to be released. COMMISSION APPROVED THE CLAIMS SUBMITTED DECEMBER 4. 2009, AND ORDERED THE CHECKS TO BE RELEASED 2 South Bend Redevelopment Commission Regular Meeting-December 4, 2009 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Public Nearing (1) Public Hearing on Resolution No. 2614 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2009 and ending December 31, 2009, including all outstanding claims and obligations, fixing a time when the same shall take effect. (Fund 425, Leighton Retail Space and Courtyard and Wayne St Garage Retail) Ms. Jennings noted that the purpose of the appropriation is to move funds from the capital budget line for the payment of 2008/pay2009 property taxes. The 2008 property taxes were a little higher than expected. Management is appealing the taxes in order to reduce them in the future. Mr. Inks noted that the Public Hearing file is complete, containing a copy of Resolution No. 2614 and affidavits from the South Bend Tribune and Tri-County news that the Notice of Hearing was published in those newspapers on November 20, 2009. Mr. Varner opened the public hearing for whoever wished to speak regarding Resolution No. 2614. There was no one who wished to speak. Mr. Varner closed the THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS PUBLIC HEARING ON RESOLUTION NO. 2614 South Bend Redevelopment Commission Regular Meeting -December 4, 2009 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Public Hearing for whatever action the Commission wished to take. (2) Approval of Resolution No. 2614 Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2614 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2009 and ending December 31, 2009, including all outstanding claims and obligations, fixing a time when the same shall take effect. (Fund 425, Leighton Retail Space and Courtyard and Wayne St Garage Retail) B. Tax Abatements (1) Resolution No. 2615 approving an application for personal property tax deduction for propert~~ located at 1710 N. Sheridan in the Airport Economic Development Area. (Hoosier Tank and Manufacturing) Mr. Mathia noted that Hoosier Tank and Manufacturing manufactures air pressure reservoirs for OEM truck and trailer manufacturers nationwide and internationally. They perforn metal forming, welding and painting operations to make tanks that can hold air and other gases under pressure. The company has the opportunity to purchase the assets (machinery, tooling, COMMISSION .APPROVED RESOLUTION NO. ?614 APPROPRIATING MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE FISCAL YFAR BEGINNING,iANUARY ~, 2009 AND ENDING DECEMBER 31.2009, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT. (FUND 425, LEIGHTON RETAIL SPACE AND COURTYARD AND WAl'NE ST GARAGE RETAIL) 4 South Bend Redevelopment Commission Regular Meeting December 4, 2009 6. NEW BUSINESS (CONT.) B. Tax Abatement (1) continued... etc.) of their competitor located in Missouri. This additional equipment will allow increased production to accommodate their increased customer base. It will also position Hoosier Tank to be the leader in their industry and to be ready for the economic upturn ahead. The equipment to be purchased is made up of various metal forming and metal working machines including lathes and band welders, resistance and robot welders and seamers, testers, a powder paint system as well as various head and bracket dies. The equipment is used and all of it will come from outside the State of Indiana. The total estimated cost of the equipment is $375,000. Total taxes to be abated during the (5) tive- year abatement period are estimated at $2,621. Total additional taxes to be paid as a result of the project during the five-year abatement period are estimated at $23,189. It is estimated that the project will create eight to twelve new, pei7nanent full-time positions with an annual payroll between $240,000 and $360,000. The project will also maintain thirty-seven existing permanent full-time positions with a total annual payroll of $1,500,000. Mr. Mathia noted that Hoosier Tank and Manufacturing has had three tax abatements, including a real property abatement and a personal property abatement which are still South Bend Redevelopment Commission Regular Meeting -December 4, 2009 6. NEW BUSINESS (CONT.) B. Tax Abatement (1) continued... active. They are in compliance with the reporting requirements for those abatements. The property is properly zoned for the proposed use. The property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for personal property tax deduction must first be approved by the South Bend Redevelopment Commission. The petitioner meets the qualifications for a (5) five-year personal property tax abatement under the tax abatement ordinance. Mr. Kinnucan noted that Hoosier Tank had an opportunity to purchase this equipment from one of its competitors and did so in March 2009. They have relocated it all to South Bend. Tlley are very excited about the new power coat line which they hope to have running by early 2009. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously can•ied, the Commission approved Resolution No. 2615 approving an application for personal property tax deduction for property located at 1710 N. Sheridan in the Airport Economic Development Area. (Hoosier Tank and Manufacturing) C. South Bend Central Development Area (1) Filing of Resolution No. 2629 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal ,year COMMISSION APPROVED RESOLUTION NO. 2615 APPROVING AN APPLICATION FOR PERSONAL PROPERTY' TAX DEDUCTION FOR PROPERTI' LOG4TED AT 171 ~ N. SHERIDAN IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (HOOSIER TANK AND MANUFACTURING) 6 South Bend Redevelopment Commission Regular Meeting -December 4, 2009 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... beginning January 1, 2010, and ending December 31, 2010, including all outstanding claims and obligations, fixing a time when the same shall take effect and setting a public hearing for 10:00 a.m., January 15, 2010, on Resolution No. 2629. (Fund 425, Leighton Retail Space and Courtyard and Wayne St Garage Retail) Mr. Inks noted that the Public Hearing and approval of Resolution No. 2614 was for re- appropriating 2009 funds for this same account. Resolution No. 2629 will appropriate all 2010 funds for this account. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously can-ied, the Commission accepted for filing Resolution No. 2629 and set a public hearing on Resolution No. 2629 for 10:00 a.m., January 15, 2010. D. Airport Economic Development Area (1) Resolution No. 2616 approving and authorizing the execution of an Addendum to the Master Agency Agreement (NW Corner of Bendix and Eclipse -Parking Lot Removal) Mr. Vitton noted that the City owns a 120,000 sft asphalt lot south and west of the proposed Animal Control Facility on Eclipse Place. The parking lot has frontage along the east-west portion of Bendix and is in general disrepair. The parking lot and portions of a COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 2629 AND SFT A PUBLIC HEARING ON RESOLUTION NO. 2629 FOR 10:00 A.M...iANUARY 15.2010 7 South Bend Redevelopment Commission Regular Meeting -December 4, 2009 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) continued... chain link fence will be removed to provide additional green space, complementing the sun•ounding Kennedy Park. This project complements City Plan by removing an impervious surface and reducing stol-~n water run-off. The Board of Public Works, will develop bid specifications, bid the project per applicable statutes, award the project, and monitor construction/demolition activities. The Board of Public Works will consult Catherine Toppel (Director of Code Enforcement) and Jeff Vitton (representative of the Redevelopment Commission) for approval of bidding specifications and change orders. Project is not to exceed $180,000 in cost. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously can•ied, the Commission approved Resolution No. 2616 approving and authorizing the execution of an Addendum to the Master Agency Agreement. (NW Corner of Bendix and Eclipse -Parking Lot Removal) (2) Resolution No. 2617 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Ivy Tech Facade Renovation and Demolition Project) Mr. Relos noted that the Commission acquired 250 E. Sample for Ivy Tech•s new administrative offices and agreed to put a South Bend Redevelopment Commission Regular Meeting -December 4, 2009 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (2) continued... new facade on it. Ivy Tech has renovated the interior already. The Commission also acquired 236 E. Sample St., a small block building which is currently housing Ivy Tech's trade center. Ivy Tech"s intent is to move the trade center into Habitat"s Restore building when the city completes acquisition of it Then, the city will demolish the block building at 236 E. Sample. These properties on E. Sample are part of a joint effort between the Commission and Ivy Tech to assist the expansion plans of Ivy Tech. This Agency Agreement establishes the Board of Public Works to act as the Commission"s agent in carrying out these two activities. A quote for the new facade on 250 E. Sample was $266,000 about a year ago. Staff believes that is still valid. Staff expects the demolition of 236 E. Sample to cost about $25,000 and asks for approval of a not to exceed amount of $295,000 for both projects. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2617 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Ivy Tech Facade Renovation and Demolition Project) (3) Filing of Resolution No. 2628 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2010, and ending December 31, 2010 including all COMMISSION APPROVED RESOLUTION NO. 2617 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT (IVY TECH FA~'ADE RENOVATION AND DEMOLITION PRO.IECT) 9 South Bend Redevelopment Commission Regular Meeting -December 4, 2009 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (3) continued... outstanding claims and obligations, fixing a time when the same shall take effect and setting a public hearing for 10:00 a.m., January 15, 2010, on Resolution No. 2628. (Blackthorn Golf Course) Upon a motion by Mr. Downes, seconded by Ms. King and unanimously can•ied, the Commission accepted for filing Resolution No. 2628 and set a public hearing on Resolution No. 2628 for 10:00 am., January I5, 2010. E. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. F. South Side Development Area There was no business in the South Side Development Area. G. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. H. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. Other (1) Proposal from AeroVision for aerial photography at various sites. 10 COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 2628 AND SET A PUBLIC HEARING ON RESOLUTION NO. 2628 FOR l 0:00 AM..,IANUARY 15,2010 South Bend Redevelopment Commission Regular Meeting -December 4, 2009 I. Other (1) continued... Mr. Schalliol noted that after having the previous aerial photography flown, additional sites were suggested. This proposal is for taking photos of those additional sites. The cost is $4,400. M1•. Varner asked what use is made of the photos. Mr. Schalliol responded that they are used in PowerPoint presentations, sent to developers interested in making a proposal for a site, and other department uses. Upon a motion by Ms. King, SCCOnded by COMMISSION ACCEPTED THE PROPOSAL FROM Mr. Downes and unanimously Carded, the AEROVISION FOR AERIAL PHOTOGRAPHY AT VARIOUS SITES IN THE AMOUNT OF $4,400 Commission accepted the proposal from AeroVision for aerial photography at various sites in the amount of $4,400. (2) Resolution No. 2618 setting a public hearing for 10:00 a.m., January 15, 2010, on the appropriation of tax increment financing revenues from various allocation areas for the payment of certain obligations and expenses related to their respective allocation areas and other related matters. Mr. inks noted that Resolution No. 2618 is the beginning of the annual TIF appropriation. Mr. Inks noted that the allocation alllounts listed in the resolution are estimated intentionally high because we do not yet know the actual allocations. We may not exceed in the appropriations the amounts advertised. As the year winds down we will be better able to determine what our actual unencumbered cash balances are going into 2010 and we are hopeful of receiving a cash South Bend Redevelopment Commission Regular Meeting -December 4, 2009 I. Other (2) continued... distribution from the county before the end of the year. We should then be able to accurately allocate the amounts. Mr. Varner asked if the separate TIF resolutions will contain a breakdown of the budget for each TIF area. Mr. Inks said that they would. Particularly in the two largest TIF districts, the SBCDA and AEDA, there will be a very detailed breakdown as part of a strategy for those areas. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously can-ied, the Commission approved Resolution No. 2618 setting a public hearing for 10:00 a.m., January 15, 2010, on the appropriation of tax increment financing revenues fi-om various allocation areas for the pa}nnent of certain obligations and expenses related to their respective allocation areas and other related matters. (3) Resolution No. 2630 approving and authorizing the execution of a Master Agency Agreement with the Board of Public Works relating to 2010 Projects. Mr. Inks noted that at the beginning of each year we do a Master Agreement with the Board of Public Works to be amended as we identify specific projects. This is the agreement for 2010. Ms. King asked if there were many changes to the one in 2009. Mr. Meteiver responded that the only changes were to pick up any projects remaining from 2009. COMMISSION APPROVED RESOLUTION NO. 2618 SETTING A PUBLIC HEARING FOR 10:00 A.M., JANUARI' 1.5. 2010, ON THE APPROPRIATION OF TAk INCREMENT FINANCING REVENUES FROM VARIOUS ALLOCATION AREAS FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND E`CPENSES RELATED TO THEIR RESPECTIVE ALLOCATION ARE,4S AND OTHER RELATED MATTERS 12 South Bend Redevelopment Commission Regular Meeting -December 4, 2009 I. Other (3) continued... Upon a motion by Mr. Downes, seconded by Ms. King and unanimously can-ied, the Commission approved Resolution No. 2630 approving and authorizing the execution of a Master Agency Agreement with the Board of Public Works relating to 2010 Projects. 7. PROGRESS REPORTS Mr. Inks noted that at a recent meeting there were several loans fi•om the South Bend Home hnprovement Loan Program (SBHIP). The Commissioners asked for a presentation on the guidelines for the program. Kaye Trowbridge is here today to make that presentation. Ms. Trowbridge outlined the guidelines of the program. The SBHIP makes it possible for low and moderate income people to live in safe and affordable housing by making repairs to their homes. It also aims to improve and maintain the housing stock in the City of South Bend. Examples of the types of repairs that can be made are new roof and gutters, new furnace, new water heater, plumbing, indoor electrical repairs and handicap accessibility. A household size of four cannot exceed $48.300 in income to be eligible for the program. A household with income of 65% or less of HUD median income may receive up to a $17,000 grant for repairs. If the repairs exceed $17,000 by no more than $5,000, the additional cost will become adue-upon-sale loan. It would be a 0% interest loan, payable when the home owner moves out of the home or dies. With a household income of 65.1 % - 80% of HUD median income a home owner may receive a 50/50 loan/grant combination. 50% of the cost of the repairs would be a grant, and 50% plus fees would become a 0% loan to be paid back monthly at an affordable monthly payment over 5 or 6 years. 13 COMMISSION APPROVED RESOLUTION NO. 2630 APPROVING AND AUTHORIZING THE EXECUTION OF A MASTER AGENCY AGREEMENT WITH THE BOARD OF PUBLIC WORKS RELATING TO 2010 PROJECTS PROGRESS REPORTS South Bend Redevelopment Commission Regular Meeting -December 4, 2009 7. PROGRESS REPORTS (CONT.) Mr. Varner asked how the program is advertised. Ms. Trowbridge responded that they advertise periodically in the newsletter that goes out in the water bills, neighborhood newsletters, etc. Brochures are available in the reception area on the 12`x' floor. Staff does track how people hear of their programs and by far the most common method is word of mouth. Mr. Varner asked about the funding source and, therefore, the boundaries of the program"s availability. Ms. Trowbridge said that the source of funds is the federal Community Development Block Grant. The program is available within the City of South Bend limits to income eligible home owners. Mr. Varner asked whether all program funds must be spent each year. Ms. Trowbridge responded that funds can be carried over to the next year. The funds spent so far in 2009 are those carried over fi•om ?008. Ms. King asked how many transactions are processed in a year. Ms. Trowbridge said that the program helps between 35 and 50 homes per year. There are considerably more applicants than that who don't qualify. Mr. Downes asked how much is disbw•sed through the program each year. Ms. Trowbridge did not have that infoi7nation available, but offered to provide that inforn~ation later. Mr. Downes thought that would be good information to publicize. Mr. Downes asked if Ms. Trowbridge knew bow many of the loans were actually repaid. Ms. Trowbridge didn't have the exact figures, but said their collection rate is very good. Uncollectible loans are referred to the city's legal department. Ms. King thanked Ms. Trowbridge for the information. She said her interest in the guidelines was prompted by 14 South Bend Redevelopment Commission Regular Meeting -December 4, 2009 7. PROGRESS REPORTS (CONT.) the address of one of the recent grants which was not in a low income neighborhood. Ms. King asked if someone who had made repairs to their home without knowing about the availability of this program could get reimbursed by the program. Ms. Trowbridge responded that they could not. The program sends out an inspector to verify the need for repairs and provides its own contractors to do the repairs, based on lowest bid. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEeTiNc scheduled for Friday, December 18, ?009 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Ms. King made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 10:33 a.m. Donald E. Inks, Director 15