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Home My WebLink About01-03-11 Redevelopment Commission Minutes SOUTH 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: Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Ms. Stephanie Spivey Members Absent: Ms. Marcia Jones, President Dr. David Varner, Vice 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. 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. CM Upon a motion by Mr. Downes, seconded by Ms. OMMISSION APPROVED THE INUTES OF THE RMD28,2010 EGULAR EETING OF ECEMBER King and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, December 28, 2010. 3. APPROVAL OF CLAIMS There were no Claims for approval. South Bend Redevelopment Commission Special Meeting –January 3, 2011 4. COMMUNICATIONS TC There were no Communications. HERE WERE NO OMMUNICATIONS 5. OLD 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. 2 South Bend Redevelopment Commission Special Meeting –January 3, 2011 5. OLD BUSINESS (CONT.) A. Other (1) continued… CAR Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED MENDED ESOLUTION N.281810:00 O SETTING A PUBLIC HEARING FOR Mr. Alford and unanimously carried, the ..,J21,2011, AM ANUARY ON THE APPROPRIATION Commission approved Amended Resolution OF TAX INCREMENT FINANCING REVENUES FROM No. 2818 setting a public hearing for 10:00 VARIOUS ALLOCATION AREAS FOR THE PAYMENT a.m., January 21, 2011,on the appropriation OF CERTAIN OBLIGATIONS AND EXPENSES of tax increment financing revenues from RELATED TO THEIR RESPECTIVE ALLOCATION AREAS AND OTHER RELATED MATTERS 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. C Upon a motion by Mr. Downes, seconded by OMMISSION RESET THE PUBLIC HEARINGS ON RN.2829R ESOLUTION O AND ESOLUTION Mr. Alford and unanimously carried, the N. 283010:00..,J21,2011 O TO AM ANUARY 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 (1) 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) 3 South Bend Redevelopment Commission Special Meeting –January 3, 2011 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. 4 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. CRN.2835 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AN APPLICATION FOR REAL Mr. Alford and unanimously carried, the PROPERTY TAX DEDUCTION FOR PROPERTY Commission approved Resolution No. 2835 L10A,H.G.BC– KNOWN AS OT AUS ENTER approving an application for real property tax POFR(SBGR) HASE NE IRST EPLAT EALTY 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 (1) 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+/-. 5 South Bend Redevelopment Commission Special Meeting –January 3, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued… Staff requests a not-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 a not-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 a not-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. C Upon a motion by Mr. Downes, seconded by OMMISSION ACCEPTED THE PROPOSAL FROM DHA ANCH ARNER AND SSOCIATES FOR THE Mr. Alford and unanimously carried, the SCOPE OF SERVICES AND AN AMOUNT NOT TO Commission accepted the proposal from $10,500 EXCEED Danch Harner and Associates for the scope of services and an amount not to exceed $10,500. 6 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 PR Mr. Inks reported that Matt Sikora has been putting ROGRESS EPORTS 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 NCM The next meeting of the Redevelopment Commission is EXT OMMISSION EETING scheduled for Friday, January 14, 2011 at 10:00 a.m. 7 South Bend Redevelopment Commission Special Meeting –January 3, 2011 9. ADJOURNMENT A There being no further business to come before the DJOURNMENT 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. 8