HomeMy WebLinkAbout2B 1/3/11 Special MeetingSOUTH BEND REDEVELOPMENT COMMISSION
SPECIAL MEETING
January 3, 2011
10:15 a.m. 227 West Jefferson Boulevard
Presiding: Nancy N. King, Secretary South Bend, Indiana
1. ROLL CALL
Members Present:
Members Absent:
Legal Counsel:
Ms. Nancy King, Secretary
Mr. Greg Downes
Mr. Donald Alford
Ms. Stephanie Spivey
Ms. Marcia Jones, President
Dr. David Varner, Vice President
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. Matthew Sikora, Economic Development Specialist
Ms. Kathy Hahn, Economic Development Specialist
Others Present: Mr. Tom Price, Mayor's Office
Mr. Jeff Gibney, Executive Director
Ms. Rita Kopala
Ms. Beth Leonard Inks
2. APPROVAL OF MINUTES
A. Approval of Minutes of the Regular Meeting of
Friday, December 28, 2010.
Upon a motion by Mr. Downes, seconded by Ms.
King and unanimously carried, the Commission
approved the Minutes of the Regular Meeting of
Friday, December 28, 2010.
3. APPROVAL OF CLAIMS
COMMISSION APPROVED THE MINUTES OF THE
REGULAR MEETING OF DECEMBER 28, 2010
There were no Claims for approval.
South Bend Redevelopment Commission
Special Meeting -January 3, 2011
4. COMMUNICATIONS
There were no Communications.
5. OLll BUSINESS
A. Other
(1) Amended Resolution No. 2818 setting a
public hearing 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. 2818,
approved on December 17, 2010, set a public
hearing for January 14, 2011 on the
allocation of TIF revenues for 2011. The
Notice of Hearing was not published on time
for that hearing, so Amended Resolution
No. 2818 resets the public hearing for the
Commission's meeting on January 21, 2011
at 10:00 a.m.
Ms. Leonard Inks noted that at the time
Resolution No. 2818 was originally
approved, staff had not received the
December TIF allocations. Those were
received last week, and revealed that there
will be more money in the West Washington
Chapin TIF than was anticipated. Similarly,
the Central Medical TIF area has additional
money available, so the Amended Resolution
reflects a higher amount to be allocated from
that area. All of the amounts listed in
Amended Resolution No. 2818 are estimated
higher than we expect to actually allocate.
The amounts will be precisely defined in the
resolutions at the time of the public hearing.
THERE WERE NO COMMUNICATIONS
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South Bend Redevelopment Commission
Special Meeting -January 3, 201 1
5. OLD BUSINESS (CONT.)
A. Other
(1) continued...
Upon a motion by Mr. Downes, seconded by
Mr. Alford and unanimously carried, the
Commission approved Amended Resolution
No. 2818 setting a public hearing for 10:00
a.m., January 21, 2011,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.
(2) Reschedule public hearings for Resolution
No. 2829 (Fund 619, Blackthorn Golf
Course) and Resolution No. 2830 (Fund
425, Michigan Street Shops and Wayne
Street Garage retail spaces)
Mr. Inks noted that staff would also like to
reschedule the public hearings on Resolution
Nos. 2829 and 2830 to 10:00 a.m.,
January 21, 2011.
Upon a motion by Mr. Downes, seconded by
Mr. Alford and unanimously carried, the
Commission reset the public hearings on
Resolution No. 2829 and Resolution
No. 2830 to 10:00 a.m., January 21, 2011.
6. NEW BUSINESS
A. Tax Abatements
(l) Resolution No. 2835 approving an
application for real property tax deduction
for property known as Lot 10A, H.G. Baus
Center -Phase One First Replat (SBG
Realty)
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COMMISSION APPROVED AMENDED RESOLUTION
NO.2818 SETTING A PUBLIC HEARING FOR 10:00
A.M., JANUARY 21, 201 1,ON THE APPROPRIATION
OF TAX INCREMENT FINANCING REVENUES FROM
VARIOUS ALLOCATION AREAS FOR 1'HE PAYMENT
OF CERTAIN OBLIGA"i'IONS AND EXPENSES
RELATED TO THEIR RESPECTIVE ALLOCATION
AREAS AND OTHER RF:I.ATED MATTERS
COMMISSION RESET THF. PUBLIC HEARINGS ON
RESOLUTION NO. 2829 AND RESOLUTION
No. 2830 To 10:00 A.M., JANUARY 21, 201 1
South Bend Redevelopment Commission
Special Meeting -January 3, 201 1
6. NEW BUSINESS (CONT.)
A. Tax Abatement
(1) continued...
Ms. Hahn noted that SBG Realty, LLC
intends to construct a 50,000 square foot
manufacturing facility which will be leased
to South Bend Gear. South Bend Gear is a
joint venture between Schafer Gear Works,
Inc. and Somaschini North America, Inc.
formed in order to supply timing gears for
Detroit Diesel Corporation, a subsidiary of
Daimler Corporation. The estimated cost of
the building is $2,100,000. In subsequent
phases, the size of the building may be
doubled.
Assuming a project cost of $2,100,000 and
an eight-year abatement term, the total taxes
to be abated during that term are estimated at
$233,063. Total taxes to be paid during the
eight-year term are estimated at $267,464.
It is estimated that the project will create 12
new, permanent full-time positions in year
one, growing to an expected 26 positions by
year two. The new annual payroll in year
one will be $605,000 growing to an expected
payroll of $1,300,000 by year two.
Ms. Hahn noted that SBG Realty has two
previous real property tax abatements. Both
are in compliance with reporting
requirements. The property is properly
zoned for the proposed use. The property is
located in the Airport Economic Area, which
is a Tax Incremental Allocation Area;
therefore, the petition for real property tax
deduction must first be approved by the
South Bend Redevelopment Commission.
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South Bend Redevelopment Commission
Special Meeting -January 3, 2011
6. NEW BUSINESS (CONT.)
A. Tax Abatement
(1) continued...
And the project qualifies for up to eight years
of abatement under the tax abatement
ordinance.
Upon a motion by Mr. Downes, seconded by
Mr. Alford and unanimously carried, the
Commission approved Resolution No. 2835
approving an application for real property tax
deduction for property known as Lot 10A,
H.G. Baus Center -Phase One First Replat
(SBG Realty)
B. South Bend Central Development Area
There was no business in the South Bend Central
Development Area.
C. Airport Economic Development Area
(I) Proposal for professional services related
to Ignition Park Minor Subdivision.
Mr. Sikora noted that staff solicited a
proposal from Danch Harner and Associates
to provide the following planning and
surveying services to create a two lot minor
subdivision for a possible user to locate in
Ignition Park.
Part I -Work to request vacation of Franklin
Street, north of Garst, and certain alleys that
will become lots within the development,
including a request of easement rights from
each utility company to allow buildings to be
built over the vacated areas. Cost for this
portion is $2850 plus filing fees $150+/-.
COMMISSION APPROVED RESOLUTION NO.2835
APPROVING AN APPLICATION FOR REAI.
PROPERTY TAX DEDUC"PION FOR PROPERTY
KNOWN AS LOT l OA, H.G. BADS CEN"DER -
PHASE ONE FIRS"I" REPLA"1" (SBG REALTY)
South Bend Redevelopment Commission
Special Meeting -January 3, 2011
6. NEW BUSINESS (CONT.)
C. Airport Economic Development Area
(I) continued...
Staff requests anot-to-exceed amount of
$3150 in the event any review work would
be required.
Part II -Preparation of a two-lot Minor
Subdivision Plat as required by the City of
South Bend subdivision standards for the
project site, including completion of all
necessary forms and applications and the
staking of lot corners. Cost for this portion is
$3450 plus review fees of $325. Staff
requests anot-to-exceed amount of $3900 in
the event any review work would be
required.
Part III -Preparation of a Variance Petition
if required from existing Zoning
Development standards for project site. Cost
for this portion is $2950 plus filing fees
$385. Staff requests anot-to-exceed amount
of $3500 in the event any review work would
be required.
This work will be conducted concurrently
with the disposition process of land at
Ignition Park.
Staff requests approval of the professional
services agreement in an amount not-to-
exceed $10,550.
Upon a motion by Mr. Downes, seconded by
Mr. Alford and unanimously carried, the
Commission accepted the proposal from
Danch Harner and Associates for the scope
of services and an amount not to exceed
$10,500.
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COMMISSION ACCEPTED THE. PROPOSAL FROM
DANCH HARNER AND ASSOCIATES FOR THE
SCONE OF SERVICES AND AN AMOUNT NOT TO
ExcEED $10,500
South Bend Redevelopment Commission
Special Meeting -January 3, 2011
6. NEW BUSINESS (CONT.)
D. West Washington-Chapin Development Area
There was no business in the West Washington-
Chapin Development Area.
E. South Side Development Area
There was no business in the South Side
Development Area.
F. Northeast Neighborhood Development Area
There was no business in the Northeast
Neighborhood Development Area.
G. Douglas Road Economic Development Area
There was no business in the Douglas Road
Economic Development Area.
7. PROGRESS REPORTS
Mr. Inks reported that Matt Sikora has been putting PROGRESS REPORTS
together the request for proposals to start the disposition
process for Ignition Park. We anticipate bringing that
forward for approval at the next Commission meeting.
Mr. Downes asked for a summary of the tax abatements
approved in 2010. Mr. Inks indicated that Mr. Mathia
has that readily available and will provide it by the next
meeting.
8. NEXT COMMISSION MEETING
The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING
scheduled for Friday, January 14, 2011 at 10:00 a.m.
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South Bend Redevelopment Commission
Special Meeting -January 3, 2011
9. ADJOURNMENT
There being no further business to come before the ADJOURNMENT
Redevelopment Commission, Mr. Downes made a
motion that the meeting be adjourned. Mr. Alford
seconded the motion and the meeting was adjourned at
10:26 a.m.
Donald E. Inks, Director