HomeMy WebLinkAbout6.B.(2) Application for Grant and Loan for Demo costs at Studebaker Foundry(~~CL)
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1200 County-City Building, 227 West Jefferson, South Bend, Indiana 46601-1830 ~ Phone 574/235-9371 • Fax 574/235-9021
To: Redevelopment Commis 'o
From: Ann Kolata~ u-
SubjeCt: Application to EPA Funded Citywide Revolving Loan Fund
Demolition of 1100 Prairie (former Studebaker Foundry)
Date: December 14, 2009
Attached is a Preliminary Application and Final Application fora $160,000 grant and a loan of up to
$500,000 for the environmental portion of the demolition costs at the former Studebaker foundry.
These funds would be used in conjunction with other funding to demolish the former foundry once
Underground Pipe & Valve has moved from the building. If you agree to submit these applications
they will be forwarded to the Board of Works for their approval.
Please contact me at 235-9374 or akolata(~southbendin.~~ov if you have any questions.
Commission memo - RLF appplication foundry dec 2009What We Do Today Makes A Difference!
SOUTH BEND CLEANUP REVOLVING LOAN FUND*
PRELIMINARY APPLICATION
Submit Completed Application to:
City of South Bend
Department of Community & Economic Development
227 West Jefferson Boulevard, Suite 1200
South Bend, IN 46601
Checklist for Application Submittal
Indicate those items you have attached:
Project Summary -Provide the following information necessary for the City to
determine the cleanup eligibility and fiscal viability of the project, including:
• Detailed description of the proposed project including the type and size of
development and estimated project cost
• Preliminary Site Plan
• Certification of Available Assets for the Project from a Certified Public
Accountant or other designated party
• Other information necessary to determine cleanup eligibility and fiscal viability
Summary of Environmental Investigations
Preliminary Cleanup Plan
Address of Site and Site Map
Evidence of Site Ownership or Control
Ownership History of Site (40 years)
*The South Bend Cleanup Revolving Loan Fund (CRLF) is funded by a U.S.
Environmental Protection Agency (USEPA) Initiative.
Applicant: South Bend Redevelopment Commission
Address: 227 W. Jefferson Blvd. #1200
South Bend, IN 46601
Contact Person: Ann Kolata
Phone: 574-235-9374
Fax: 574-235-9021
Email: akolata(cusouthbendin.~.ov
Property Address: 1100 Prairie Avenue Property Tax ID Number: 18-8021-084902
Provide a brief description and history of the Applicant and the Business to be assisted by
this loan. Include information on product or service and number of employees for the
Business.
The South Bend Redevelopment Commission exists and operates under the
authority of I.C. 36-7-14. They have designated a number of redevelopment and
economic development areas within the city and have undertaken a number of
projects to bring about redevelopment and/or economic development. One such
project is the redevelopment of the former Studebaker property and the
development of Ignition Park.
Identify the site for which the loan has been requested. Include infornation on the
current owner of the property, street address, size, zoning, and other related information.
Attach a site map.
The property at 1100 Prairie Avenue is owned by the South Bend Redevelopment
Commission. It was purchased on July 2, 2009. It is zoned industrial and contains
approximately 19.191 acres. There is a building on the property that was
constructed as the Studebaker foundry. The building has approximately 568,000
square feet. It is currently occupied by Underground Pipe & Valve and is used as a
piping materials storage facilih~. Piping materials for road, sewer and building
construction are stored on the property.
Describe your plans for redeveloping the site. Include a detailed description of all
elements of the proposed plan, such as type of development (residential, commercial,
office, etc.), estimated private investment in the site, estimated taxable value, and
estimated construction timetable and other related information. Describe any
commitments for financing the proposed project. Attach a Preliminary Site Plan.
The property is still occupied but will be demolished when it is vacant. Revolving
Loan Funds will be used to fund the environmental portions of the demolition.
Once demolition is complete the property will be combined with other former
Studebaker properties for development as Ignition Park. Ignition Park represents
South Bend's response to a decision in 2008 by the Semiconductor Research Corp.'s
Nanoelectronics Research Initiative (NRI) to locate the fourth of its national
research centers at the University of Notre Dame. Known as MIND, the Midwest
Institute for Nanoelectronics Discovery is focused on creating the architecture to
replace the complementary metal oxide semiconductor technology now in use today.
Through MIND, Notre Dame brings together researchers from eight universities,
including Purdue University, Penn State University, the University of Illinois, the
University of Michigan, the University of Texas at Dallas, Georgia Tech University
and Cornell University. Ignition Park will concentrate on high-potential
technologies and ventures, as well as the commercialization of nanotechnology
concepts inspired by MIND.
Provide a summary of the environmental investigations completed at the site and the
contamination impeding development of the site.
A Phase I Environmental Site Assessment (ESA) was conducted by Hull &
Associates, Inc. in January 2001. This was follo~~~ed by a phase II ESA in February
2002.
A new Phase I ESA was completed by Hull & Associates in June 2009.
The June 2009 Phase I ESA listed a number of Recognized Environmental
Conditions (RECs) on the site. They include:
• One 500 gallon UST reportedly stored gasoline.
• One 10,000 gallon UST reportedly stored fuel oil.
• Three 10,000 gallon core oil tanks.
• A pit with steel-plate cover is located northwest of the former pumphouse.
• Former rails are located on the east and north portions of the Site.
• Two outfalls from the direction of the facility to the reservoir located on the
southwest portion of the Site.
• Pits located inside the foundry filled with wood and metal debris.
• Bins with sand and potential historic coke pits.
• SVOCs and metals in soils at concentrations exceeding IDEM RISC
standards.
• VOCs and metals in groundwater at concentrations exceeding IDEM RISC
standards.
• Drums and _5 gallon pails within the building.
There are also Asbestos Containing Materials in the building and roofing.
Estimated cost for the cleanup: Demolition is estimated to cost approximately
$3,000,000. Of this amount approximately $700,000 will be for remediation of RECs
or ACMs.
Anticipated Start Date for cleanup: 2010
Anticipated Completion Date for cleanup: 2011
Has a Remediation Work Plan been developed? If yes, please attach. yes X no
A remediation Work Plan has been prepared for the general area. However, this
use of RLF funds is for building demolition. The demolition specs (including
remediation of demolition related RECs and/or ACMs) are currently being
prepared.
Is the site enrolled in Indiana"s Voluntary Remediation
Program ("VRP")? X yes no
What is your VRP Number? 6020803 (soils) and 6030904 (groundwater)
Do you anticipate enrolling in the VRP? N/A yes no
Is the party who caused the contamination known? If yes, identify _X_yes no
Name of Responsible Party: The South Bend Redevelopment Commission is
currently in litigation with Cooper Industries which is the successor to the
Studebaker Motor Company.
Address (if known)
Has the Responsible Party been contacted regarding the cleanup? X_yes no
Has the Applicant or Business being assisted ever been cited for non-compliance with
any environmental regulation? If yes, explain yes X_no
The undersigned hereby certifies that all information provided to the City of South Bend
herein and furnished with this application is and will be true, accurate, complete, and
fairly presents the financial condition of the undersigned.
AUTHORIZED SIGNATURE TITLE DATE
Stephen J. Luecke
Mayor
SOUTH BEND CLEANUP REVOLVING LOAN FUND*
FINAL APPLICATION
Submit Completed Application to:
City of South Bend
Department of Community & Economic Development
227 West Jefferson Boulevard, Suite 1200
South Bend, IN 46601
Checklist for Application Submittal
Please identify and submit the following items applicable to your project:
^ Certification of Available Assets for the Project from a Certified Public Accountant
or other designated party
^ Current Financial Statements (within 90 days)
^ Schedule of Debt obligations
^ Construction Plans and Specifications/Budget
^ Aging Reports (3 most recent consecutive periods)
^ Inventory Breakdowns
^ Financial Statement Projections (for 2 years after project completion)
^ Credit Ratings Information
^ Resumes of Owners and Key managers
^ Phase I and II Environmental Site Assessments
^ Baseline Environmental Assessment
^ Site Development Plan
^ Site Remediation Work Plan
^ Have you signed the application?
*The South Bend Cleanup Revolving Loan Fund (CRLF) is funded by a U.S. Environmental Protection
Agency (USEPA) Initiative.
City of South Bend Final Application
Business Name: South Bend Date of Application:
Redevelopment
Commission
Applicant 227 W. Jefferson
Address:
#1200
South Bend, IN 46601
Contact Person: Ann Kolata
Phone: 574-235-9374
Fax: 574-235-9021 Email:
Applicant EIN: 35-6001201 Social Security
Number (if applicable):
Bank Name: 1St Source Bank Bank Phone:
Bank Address: 315 N. Michigan Street
South Bend, IN 46601
December 18, 2009
akolata southbendin.gov
N/A
574-235-2000
Amount of Loan up to $660,000 ** Loan Term: 10 years
Requested:
Loan Puroose (brief descriotionl:
Loan and sub-grant proceeds will be used to pay for the environmental remediation of Recognized
Enviornmental Conditions (RECs) and Asbestos Containting Materials (AGMs) at the former
Studebaker foundry. Specifications are currently being prepared for demolition of the 568,000
square foot building. Loan and sub-grant funds will be used in conjunction with other funds as part
of the demolition project.
The Redevelopment Commission is requesting that they receive a subgant of $160,000 and a loan
of up to $500,000. On a previous project U.S. EPA agreed with the City's determination that the
Redevelopment Commission is a spearate legal entity from the City of south Bend and is eligible for
a subgrant.
Source of
t:
City of South Bend Page 1 of 3 Final Application
The South Bend Redevelopment Commission will use Tax Increment funds from the Airport
Economic Development TIF area for repayment of the loan.
The Commission is requesting a 0% interest loan with payback to begin five years after the loan
closing.
DAB
•~ ~ ~ ~
1. Co-Signer(s)/Guarantor(s) N/A Phone:
Address: SSN:
2. Co-Signer(s)/ Guarantor(s) Phone:
Address: SSN:
3. Co-Signer(s)/Guarantor(s) Phone:
Address: SSN:
4. Co-Signer(s)/Guarantor(s) Phone:
Address: SSN:
. ~
Type of Business: ^ Manufacturing ^ Retail ^ Wholesale
^ Service ® Other Government
Legal Structure of ^ C-Corp ^ S-Corp ^ Limited Liability
Company
Business: ^ Partnership ^ Sole Partnership ®Other Government
State of Registration Date Started:
Business Location: ^ Owned ^ Home-Based ^ Leased, expires
Job Information: Number of Employees: N/A
Estimated # of Jobs to be Created:
Estimated # of Jobs to be Saved:
• ~
List all owners and key managers of your business. Attach Management Resumes for those listed
below.
Name Title /Position % Ownership Years w/Company
City of South Bend Page 2 of 3 Final Application
Marcia I. Jones President N/A Since 9/17/1999
David Varner Vice-President N/A Since 4/18/2008
Nancy N. King Secretary N/A Since 10/17/2008
Gregory S. Downes Member N/A Since 1/3/2005
Donald Alford Sr. Member N/A Since 1/16/2008
Stephanie Spivey Member N/A Since 2/20/2009
City of South Bend Page 3 of 3 Final Application
~ ~ ~
~'~ List your three largest customers/clients:
Name Contact Person Phone
List three major suppliers or credit references:
Name Contact Person Phone
•
List the name of the Lending Institution that will finance the Redevelopment project.
Name of Bank Contact Person Phone
• •- •
Is the business involved in any claim or lawsuit? Yes ® No ^
Are there any other taxes not currently paid or in dispute? Yes ^ No
Has the business ever been suspended or debarred, declared
bankruptcy, commenced a proceeding under any bankruptcy law Yes ^ No
or had a judgment rendered against it?
Is any collateral currently pledged to other creditors? Yes ^ No
Is the business liable for any amount via guaranties, or Yes ® No ^
commitments, or other contingency agreements?
If you answered "Yes" to any questions(s), please explain. Attach additional pages as
necessary.
Please make sure you attach the applicable documents listed on the Checklist for Application
Submittal.
The undersigned hereby certifies that all information provided to the City of South Bend ("South
Bend") herein and furnished with this application is and will be true, accurate, complete, and fairly
presents the financial condition of the undersigned. South Bend may check credit and trade
references in reviewing this application and disclose information about its credit experience with the
applicant, as authorized by law. South Bend may also check the personal credit history of the
principal owner(s) and/or key individuals. By signing below, the undersigned agree that the business
loan will be for the purpose identified in the loan application and in accordance with the South Bend
Cleanup Revolving Loan Fund requirements.
AUTHORIZED SIGNATURE TITLE DATE
City of South Bend Page 4 of 3 Final Application