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HomeMy WebLinkAbout01-19-07 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING January 19, 2007 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Mr. Karl King, Vice President Mr. Greg Downes, Secretary Mr. Hardie B lake, Jr. Mr. William Hojnacki Legal Counsel: Mr. Shawn Peterson, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. Andrew Laurent, Economic Development Specialist Ms. Jennifer Laurent, Economic Development Specialist Mr. Nicholas Witwer, Economic Development Specialist Others Present: Mr. Jeff Gibney, Executive Director Ms. Pam Paluszewski, Legal Dept. Ms. Jamie Loo, South Bend Tribune Ms. Sharon Terrell Ms. Suzanne Miller Mr. Richard Deahl, Barnes & Thornburg Mr. Rick Reid, Blackthorn Golf Club Mr. John Quickstad, Blackthorn Golf Club Mr. Stan Blenke, Schafer Gear Works Ms. Rita Kopala Ms. Glenda Rae Hernandez Ms. Elizabeth Leonard, Financial & Program Management Mr. & Mrs. Barton Bennett, Odyssion Technology Ms. Cathy Catlin, CBRE Ms. Jamie Wade, CBRE South Bend Redevelopment Commission Regular Meeting -January 19, 2007 2. APPROVAL OF MINUTES A. Approval of Minutes of the Annual Organizational Meeting of Tuesday, January 2, 2007. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Minutes of the Annual Organizational Meeting of Tuesday, January 2, 2007. B. Approval of Minutes of the Regular Meeting of Friday, January 5, 2007. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, January 5, 2007. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE ANNUAL ORGANIZATIONAL MEETING OF TUESDAY, JANUARY 2, 2007 COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, JANUARYS, 2007. Redevelopment Commission Claims submitted January 19, 2007 for approval. 305 SBCDA 2003 BOND Baker & Daniels LLP 2,730.00 324 AIRPORT AEDA Ken Herceg & Associates, Inc. 3,270.40 414 SAMPLE EWING GENERAL Tom Boggs 350.00 Michiana Lock & Key 27.00 420 FUND TIF DISTRICT-SBCDA GENERAL Indiana Michigan Power 183.41 AT&T 135.78 Schindler Elevator Corporation 127.68 Rose Pest Solutions 87.00 South Bend ~Uater Works 171.05 Ritschard Brothers, Inc. 42,224.00 2 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 3. APPROVAL OF CLAIMS (CONT.) 428 FUND AIRPORT 2003 BOND Walsh & Kelly Walsh & Kelly R&R Excavating 145,967.93 Dylan Dr. Extension 408,757.36 Bendix & Lathrop Dr 491,464.93 Voorde Dr. Extension 619 FUND BLACKTHORN Meadowbrook Golf Group Inc. 4,000.00 $ 1,099,496.54 Upon a motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Claims submitted January 19, 2007, and ordered checks to be released. 4. COMMUNICATIONS There Were n0 CommunlcatlonS. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Public Hearing Mr. Peterson recommended the Commission give the staff report on each resolution and hold one public hearing, offering opportunity for anyone to speak concerning any of the resolutions. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission authorized consolidating the public hearings for items 6.A.(1), 6.A.(3), 6.A.(5), 6.A.(7), 6.A.(9), 6.A.(11), 6.A.(13), 6.A.(15), 6.A.(17), and 6.A.(19). COMMISSION APPROVED THE CLAIMS SUBMITTED JANUARY I9, 2007, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS COMMISSION AUTHORIZED CONSOLIDATING THE PUBLIC HEARINGS FORITEMS 6.A.(1), 6.A.(3), 6.A.(5), 6.A.(7), 6.A.(9), 6.A.(ll), 6.A.(13), 6.A.(15), 6.A.(17), AND 6.A.(19) 3 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings (1) Public Hearing on Resolution No. 2296 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2007 and ending December 31, 2007, including all outstanding claims and obligations, fixing a time when the same shall take effect. (Fund 425, Leighton Plaza/Wayne Street Building Operations Budget) Mr. Inks noted that the public hearing file for Resolution No. 2296 is complete. It contains a copy of Resolution No. 2296, a copy of the Notice of Hearing, and affidavits from the South Bend Tribune and Tri-County News stating that the Notice of Hearing was published in those newspapers on January 5, 2007. Mr. Inks also noted that the allocation for Fund 425 is $153,394. A consolidated public hearing will be held following the staff presentations as noted above. (3) Public Hearing on Resolution No. 2298 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2007 and ending December 31, 2007, including all outstanding claims and obligations, fixing a time when the same shall take effect. (Fund 619, Blackthorn Golf Course) Mr. Inks noted that the public hearing file for 4 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... Resolution No. 2298 is complete. It contains a copy of Resolution No. 2298, a copy of the Notice of Hearing, and affidavits from the South Bend Tribune and Tri-County News stating that the Notice of Hearing was published in those newspapers on January 5, 2007. Mr. Inks also noted that the allocation for Fund 619 is $2,367,979. A consolidated public hearing will be held following the staff presentations as noted above. (5) Public Hearing on Resolution No. 2299, a Supplemental Appropriation Resolution of the South Bend Redevelopment Commission. (SBCDA, South Bend Allocation Area lA) Mr. Inks noted that the public hearing file for Resolution No. 2299 is complete. It contains a copy of Resolution No. 2288, a copy of Resolution No. 2299, a copy of the Notice of Hearing on Resolution No. 2299, and affidavits from the South Bend Tribune and Tri-County News stating that the Notice of Hearing was published in those newspapers on January 5, 2007. Mr. Inks also noted that the allocation for the South Bend Allocation Area 1 A Special Fund is $6,775,565. 5 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... A consolidated public hearing will be held following the staff presentations as noted above. (7) Public Hearing on Resolution No. 2300, a Supplemental Appropriation Resolution of the South Bend Redevelopment Commission. (AEDA, Airport Economic Development Area Allocation Area No. l) Mr. Inks noted that the public hearing file for Resolution No. 2300 is complete. It contains a copy of Resolution No. 2289, a copy of Resolution No. 2300, a copy of the Notice of Hearing on Resolution No. 2300, and affidavits from the South Bend Tribune and Tri-County News stating that the Notice of Hearing was published in those newspapers on January 5, 2007. Mr. Inks also noted that the allocation for the Airport Economic Development Area Allocation Area No. l Special Fund is $14,000,000. A consolidated public hearing will be held following the staff presentations as noted above. (9) Public Hearing on Resolution No. 2301, a Supplemental Appropriation Resolution of the South Bend Redevelopment Commission. (SEDA, South Bend Allocation Area No. 8) Mr. Inks noted that the public hearing file for 6 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... Resolution No. 2301 is complete. It contains a copy of Resolution No. 2290, a copy of Resolution No. 2301, a copy of the Notice of Hearing on Resolution No. 2301, and affidavits from the South Bend Tribune and Tri-County News stating that the Notice of Hearing was published in those newspapers on January 5, 2007. Mr. Inks also noted that the allocation for the South Bend Allocation Area No. 8 Special Fund is $785,629. A consolidated public hearing will be held following the staff presentations as noted above. (11) Public Hearing on Resolution No. 2302, a Supplemental Appropriation Resolution of the South Bend Redevelopment Commission. (WWCDA, South Bend Allocation Area No. 7) Mr. Inks noted that the public hearing file for Resolution No. 2302 is complete. It contains a copy of Resolution No. 2291, a copy of Resolution No. 2302, a copy of the Notice of Hearing on Resolution No. 2302, and affidavits from the South Bend Tribune and Tri-County News stating that the Notice of Hearing was published in those newspapers on January 5, 2007. Mr. Inks also noted that the allocation for the South Bend Allocation Area No. 7 Special Fund is $566,975. 7 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings (11) continued... A consolidated public hearing will be held following the staff presentations as noted above. (13) Public Hearing on Resolution No. 2303, a Supplemental Appropriation Resolution of the South Bend Redevelopment Commission. (DMSD Allocation Area) Mr. Inks noted that the public hearing file for Resolution No. 2303 is complete. It contains a copy of Resolution No. 2292, a copy of Resolution No. 2303, a copy of the Notice of Hearing on Resolution No. 2303, and affidavits from the South Bend Tribune and Tri-County News stating that the Notice of Hearing was published in those newspapers on January 5, 2007. Mr. Inks also noted that the allocation for the Downtown Medical Services District Special Fund is $1,131,953. A consolidated public hearing will be held following the staff presentations as noted above. (15) Public Hearing on Resolution No. 2304, appropriating tax increment financing revenues from Allocation Area No. l Fund for the payment of certain obligations and expenses related to the South Side Development Area Allocation Area No. 1. Mr. Inks noted that the public hearing file for Resolution No. 2304 is complete. It contains 8 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings (15) continued... a copy of Resolution No. 2293, a copy of Resolution No. 2304, a copy of the Notice of Hearing on Resolution No. 2304, and affidavits from the South Bend Tribune and Tri-County News stating that the Notice of Hearing was published in those newspapers on January 5, 2007. Mr. Inks also noted that the allocation for the South Side Development Area Allocation Area No. 1 Special Fund is $62,283. A consolidated public hearing will be held following the staff presentations as noted above. (17) Public Hearing on Resolution No. 2305 setting a public hearing on the appropriation of tax increment financing revenues from Allocation Area No. 2 Fund for the payment of certain obligations related to the South Side Development Area Allocation Area No. 2 and other related matters. Mr. Inks noted that Resolution No. 2305 is being withdrawn. The South Side Development Area Allocation Area No. 2 Special Fund is dedicated to paying debt service on the outstanding bonds. Bond payments do not begin until 2008, so no allocation is needed. (19) Public Hearing on Resolution No. 2306, appropriating tax increment financing revenues from Allocation Area No. 3 Fund 9 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings (19) continued... for the payment of certain obligations and expenses related to the South Side Development Area Allocation Area No. 3. Mr. Inks noted that the public hearing file for Resolution No. 2306 is complete. It contains a copy of Resolution No. 2295, a copy of Resolution No. 2306, a copy of the Notice of Hearing on Resolution No. 2306, and affidavits from the South Bend Tribune and Tri-County News stating that the Notice of Hearing was published in those newspapers on January 5, 2007. Mr. Inks also noted that the allocation for the South Side Development Area Allocation Area No. 3 Special Fund is $560,037. A consolidated public hearing will be held following the staff presentations as noted above. Ms. Jones opened the consolidated Public Hearing on Resolutions No. 2296, 2298, 2299, 2300, 2301, 23 02, 23 03, 23 04, and 23 06 for whoever wished to speak. There was no one who wished to speak concerning any of the resolutions. Ms. Jones closed the public hearing for whatever action the Commission wished to take. CONSOLIDATED PUBLIC HEARING ON RESOLUTIONS No. 2296, 2298, 2299, 2300, 2301, 2302, 2303, 2304, AND 2306 10 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings (2) Commission approval requested for Resolution No. 2296. Upon a motion by Mr. King, seconded by COMMISSION APPROVED RESOLUTION N0.2296 Mr. Downes and unanimously carried, the APPROPRIATING MONIES FOR THE PURPOSE of Commission approved Resolution No. 2290) DEFRAYING THE EXPENSES OF CERTAIN LOCAL appropriating monies for the purpose of PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING JANUARY I, 2007 AND ENDING defraying the expenses of certain local public DECEMBER 3 I, 2007, INCLUDING ALL improvements for the fiscal year beginning OUTSTANDING CLAIMS AND OBLIGATIONS, January 1, 2007 and ending December 3 1, FIXING A TIME wHEN THE SAME SHALL TAKE 2007 includin all outstandin claims and g g EFFECT. (FUND 425, LEIGHTON PLAZA/WAYNE ' obligations, fixing a time when the same STREET BUILDING OPERATIONS BUDGET) shall take effect. (Fund 425, Leighton Plaza/Wayne Street Building Operations Budget} (4) Commission approval requested for Resolution No. 2298. Upon a motion by Mr. King, seconded by COMMISSION APPROVED RESOLUTION N0.2298 Mr. Downes and unanimously carried, the APPROPRIATING MONIES FOR THE PURPOSE of Commission approved Resolution No. 2298 DEFRAYING THE EXPENSES OF CERTAIN LOCAL appropriating monies for the purpose of PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2007 AND ENDING defraying the expenses of certain local public DECEMBER 3 I, 2007, INCLUDING ALL improvements for the fiscal year beginning OUTSTANDING CLAIMS AND OBLIGATIONS, January 1, 2007 and ending December 3 1, FIXING A TIME wHEN THE SAME SHALL TAKE 2007 includin all outstandin claims and g g EFFECT. (FUND 619, BLACKTHORN GOLF ' obligations, fixing a time when the same COURSE) shall take effect. (Fund 619, Blackthorn Golf Course) (6) Commission approval requested for Resolution No. 2299. Upon a motion by Mr. King, seconded by COMMISSION APPROVED RESOLUTION N0.2299 Mr. Downes and unanimously carried, the A SUPPLEMENTAL APPROPRIATION RESOLUTION Comm1SS10n a roved Resolution No. 2299 a OF THE SOUTH BEND REDEVELOPMENT pp COMMISSION. (SBCDA, SOUTH BEND Supplemental Appropriation Resolution of ALLOCATION AREA lA) 11 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... the South Bend Redevelopment Commission. (SBCDA, South Bend Allocation Area lA) (8) Commission approval requested for Resolution No. 2300. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2300 Public Hearing on Resolution No. 2300, a Supplemental Appropriation Resolution of the South Bend Redevelopment Commission. (AEDA, Airport Economic Development Area Allocation Area No. 1) (10) Commission approval requested for Resolution No. 2301. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2301, a Supplemental Appropriation Resolution of the South Bend Redevelopment Commission. (SEDA, South Bend Allocation Area No. 8) (12) Commission approval requested for Resolution No. 2302. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2302, a Supplemental Appropriation Resolution of the South Bend Redevelopment Commission. (~UWCDA, South Bend Allocation Area No. 7) COMMISSION APPROVED RESOLUTION N0.2300 PUBLIC HEARING ON RESOLUTION N0.2300, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION. (AEDA, AIRPORT ECONOMIC DEVELOPMENT AREA ALLOCATION AREA N0. I ) COMMISSION APPROVED RESOLUTION N0.2301, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION. (SERA, SOUTH BEND ALLOCATION AREA N0.8) COMMISSION APPROVED RESOLUTION N0.2302, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION. (WWCDA, SOUTH BEND ALLOCATION AREA N0.7) 12 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings (14) Commission approval requested for Resolution No. 2303. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2303, a Supplemental Appropriation Resolution of the South Bend Redevelopment Commission. (DMSD Allocation Area) (16) Commission approval requested for Resolution No. 2304. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No.2304, appropriating tax increment financing revenues from Allocation Area No. 1 Fund for the payment of certain obligations and expenses related to the South Side Development Area Allocation Area No. 1. (20) Commission approval requested for Resolution No. 2306. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2306, appropriating tax increment financing revenues from Allocation Area No. 3 Fund for the payment of certain obligations and expenses related to the South Side Development Area Allocation Area No. 3. Mr. King noted that the staff reports and public hearing were expedited, but they represent a lot of work by the staff to plan and prepare budgets for the various accounts. COMMISSION APPROVED RESOLUTION N0.2303, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION. (DMSD ALLOCATION AREA) COMMISSION APPROVED RESOLUTION N0.2304, APPROPRIATING TAX INCREMENT FINANCING REVENUES FROM ALLOCATION AREA N0. I FUND FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THE SOUTH SIDE DEVELOPMENT AREA ALLOCATION AREA No. l COMMISSION APPROVED RESOLUTION N0.2306, APPROPRIATING TAX INCREMENT FINANCING REVENUES FROM ALLOCATION AREA N0.3 FUND FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THE SOUTH SIDE DEVELOPMENT AREA ALLOCATION AREA No. 3 13 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings (20) continued... He acknowledged the hard work it took to prepare for these annual allocations. B. Tax Abatements (1) Commission approval requested for Resolution No. 2307 approving an application for real property tax deduction for property located at 511 East Colfax and 210 North Niles in the South Bend Central Development Area. (Odyssian Technology) Mr. Schalliol gave the staff report on both the real and personal property abatements for Odyssian Technology's project. Odyssian Technology is purchasing two buildings in the East Bank Development Area. Plans are to renovate the 2,800 square foot Colfax Avenue building by making a new entry, adding windows, redesigning the office space, adding a kitchen break room, conference room, engineering center and restrooms. The facade will be reworked by adding windows, new doors, lighting, landscaping, and paving the parking area. The empty lot will be redeveloped into a courtyard with a wrought iron gate and a few parking spaces. The facility will be set up with state of the art information technology capabilities. The Niles Avenue facility has 2,588 square feet and will be renovated by replacing doors and windows, power washing and painting, replacing the roof, resurfacing floors, adding security and lighting, and any utilities improvements 14 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatement () continued... needed to support a research and development laboratory. This project is eligible for an abatement under the East Bank Development Area Rehab requirement of 5,000 square feet. The project will rehab a total of 5,388 square feet. The project will create five new permanent, full-time jobs representing a new annual payroll of $277,440. The project will also maintain three existing full time jobs with an annual payroll of $483,584. Odyssian Technology has not received any previous tax abatements. The property is properly zoned for the proposed use. The property is located in the South Bend Central Development Area which is a tax increment allocation area; therefore, the abatement must first be approved by the Redevelopment Commission. The project qualifies for four years o f real property abatement and five years of personal property abatement under the tax abatement ordinance. The real property taxes to be abated during the four year abatement are estimated to be $25,766. The taxes to be paid during that same period are estimate to be $15,458. Mr. Bennett noted that Odyssian Technology has been in business for about four years. He is excited about relocating to the Colfax/Niles area because he thinks the City of South Bend has a vision for increasing technology and innovation in the East Bank. 15 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatement () continued... He hopes his location there is a catalyst for other technology related businesses to locate there as well. Mr. King thanked Mr. Bennett for his confidence in the area and reiterated the Commission's desire to facilitate technology and innovation development there. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2307 approving an application for real property tax deduction for property located at 511 East Colfax and 210 North Niles in the South Bend Central Development Area. (Odyssian Technology) (2) Commission approval requested for Resolution No. 2308 approving an application for personal property tax deduction for property located at 511 East Colfax and 210 North Niles in the South Bend Central Development Area. (Odyssian Technology) Mr. Schalliol noted that the project for the personal property abatement will invest $384,816 in research and development equipment for Odyssian's new location. The personal property taxes to be abated during the five year abatement are estimated to be $23,517. The taxes to be paid during that same period are estimated to be $12,238. COMMISSION APPROVED RESOLUTION N0.2307 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT S 11 EAST COLFAX AND 21 ~ NORTH NILES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (ODYSSIAN TECHNOLOGY) 16 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatement continue ... Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2308 approving an application for personal property tax deduction for property located at 511 East Colfax and 210 North Niles in the South Bend Central Development Area. (Odyssian Technology) (3) Commission approval requested for Resolution No. 2309 approving an application for real property tax deduction for property located at 211 North Eddy Street in the Northeast Neighborhood Development Area. (South Bend Clinic) Mr. Schalliol gave the staff report on the project. The South Bend Clinic will add a new three-story, 104,000 square foot building addition connected to the existing 100,000 square foot medical office structure and two separate tiered parking structures. One will be three stories, the other will be two stories, all on the campus of the Eddy Street site. The overall project is critical to accommodate growth in new physicians by the Clinic to serve an increasing patient population. In addition, the project will replace and expand current ambulatory surgical facilities. After discussions between city staff and the South Bend Clinic, it was determined that the Clinic would only apply for the base abatement of three years rather than complete the Points Benefit Summary to qualify for COMMISSION APPROVED RESOLUTION N0.2308 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT S I I EAST COLFAX AND 210 NORTH NILES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (ODYSSIAN TECHNOLOGY) 17 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatement continue ... additional years. Staff was willing to support the request as a business incentive because of the additional development requirements for the project, but also wanted to protect the TIF increment of the Northeast Neighborhood Development Area. The project is anticipated to create forty new full time jobs and six new part time jobs representing a new annual payroll within the first year of $4.86 million. The project will also maintain four hundred nine existing full- time and sixty-two part time jobs with an annual payroll of $34.SM. South Bend Clinic has applied for another tax abatement for its Cleveland Road branch that is currently being processed. The property at Eddy Street is properly zoned for the proposed use. This project is in the Northeast Neighborhood Development Area, a tax increment allocation area; therefore, the petition for real property tax abatement must first be approved by the Redevelopment Commission. The three-year abatement would be a special exception under the tax abatement ordinance. The project is estimated to cost between $30M and $33M. Total taxes to be abated during the three year abatement period are estimated to be between $2,047,465 and $2,252,212. The total taxes to be paid during that same period are estimated to be between $1,039,166 and $1,143,083. 18 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatement continue ... Mr. Richard Deahl, Barnes & Thornburg, provided some additional information regarding the Special Exception. The Clinic's downtown facility is located just outside the Central Business District, an area that would have made the Clinic qualified for tax abatement under the tax abatement ordinance. The size of the project then became the basis for the Special Exception. Mr. Inks stated that the South Bend Clinic has been an excellent corporate citizen in South Bend. The leadership of the South Bend Clinic has involved itself in other aspects of the community, is very sensitive to what we're trying to accomplish in the Northeast Neighborhood and has worked very well with us in moving some projects forward there and in the downtown area itself. The statement in the report of the staff's support for this abatement was a little too conservative. We enthusiastically support the clinic's petition and expansion. Mr. King agreed. The South Bend Clinic has gone through a four to five year planning process for this project. The Clinic has been in constant communication with neighbors and other institutions in the Northeast Neighborhood, coming to neighborhood association meetings, presenting design plans, responding to questions and concerns of people living in the area. If we're looking for a model way of developing a project and presenting it to your neighbors, this would be it. This is really an excellent project for the 19 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatement continue ... city and the Northeast Neighborhood and is certainly deserving of our full support. Ms. Jones noted that the project will be paying taxes on this new development during the abatement period. We don't want to lose sight of that. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2309 approving an application for real property tax deduction for property located at 211 North Eddy Street in the Northeast Neighborhood Development Area. (South Bend Clinic) (4) Commission approval requested for Resolution No. 2310 approving an application for personal property tax deduction for property located at 4701 Nimtz Parkway in the Airport Economic Development Area. (Schafer Gear Works) Mr. Schalliol gave the staff report on the project. Schafer Gear Works plans to purchase and install machinery and equipment for new gear grinding capability to replace business lost, to retain employees, and to add capabilities necessary to secure new business. The equipment consists of a gear grinding machine plus automation and a hob sharpener. The new equipment will cost $843,000. Total taxes to be abated during the five-year abatement period are estimated at $51,360. COMMISSION APPROVED RESOLUTION N0.2309 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 211 NORTH EDDY STREET IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. (SOUTH BEND CLINIC) 20 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatement () continued... Total taxes to be paid during the same period are estimated at $26,726. The project will create one new full-time job in the first year of production, representing a new annual payroll of $34,320. The project will also maintain seventy-three existing full- time jobs representing an annual payroll of $2,722,263. Schafer gear has received two real property tax abatements and six personal property tax abatements since 1988. They are current on all reporting requirements for the existing abatements. The project is properly zoned for the proposed use. The property is in the Airport Economic Development Area, which is a tax increment allocation area; therefore, the petition for personal property tax deduction must first be approved by the South Bend Redevelopment Commission. The project qualifies for five years of personal property tax abatement under the tax abatement ordinance. Mr. Blenke, Executive Vice President, Schafer Gear, noted that they will be purchasing two pieces of equipment. One is a state-of the-art piece of equipment to replace an old, manual piece of equipment. The other is state-of the-art gear grinding equipment. The industry is moving quickly toward gear grinding which produces a very quiet, but high quality, gear. If it doesn't keep up with this technology, Schafer Gear will quickly fall behind in the industry. The 21 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatement () continued... cost of the equipment has fallen dramatically since it was first developed. It is now affordable. Mr. Blenke stressed the 72 jobs that this purchase will protect. Its average wage rate is over $14/hour. Upon a motion by Mr. Hojnacki, seconded by Mr. King and unanimously carried, the Commission approved Resolution No. 2310 approving an application for personal property tax deduction for property located at 4701 Nimtz Parkway in the Airport Economic Development Area. (Schafer Gear Works) C. South Bend Central Development Area (1) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Survey work) Ms. Laurent noted that staff has asked Wightman Petrie Environmental to submit a proposal to prepare new maps and legal descriptions for a revision plan for the South Bend Central Development Area. The contract will be for the not-to-exceed amount of $820. Only one quote was requested as Wightman Petrie did the work last time and should be able to make the revisions needed now more efficiently. Upon a motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the request for COMMISSION APPROVED RESOLUTION N0.2310 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 47O I NIMTZ PARKWAY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (SCHAFER GEAR WORKS COMMISSION APPROVED THE REQUEST FOR PROPOSAL IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM WIGHTMAN PETRIE FOR THE 22 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area () continued... proposal in the South Bend Central Development area and accepted the proposal from Wightman Petrie for the scope of services and fee proposed. (Survey work) (2) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Appraisals, Key Bank Plaza) Ms. Laurent noted that staff requested proposals from four MAI appraisers for certified appraisal reports on property located at 202-206 S. Michigan St. Three proposals were received. Staff recommends approval of the two lowest proposals: Rick Pitts for a not-to-exceed amount of $2,400 and Jerome Michaels for anot-to-exceed amount of $2,300. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved the request for proposals for appraisal work in the South Bend Central Development Area and accepted the proposals from Rick Pitts and Associates and Jerome E. Michaels for the scope of services and fee proposed. (3) Commission authorization requested from Downtown South Bend to use the LaSalle Hotel parking lot for the St. Paddy's Day Tent Party on March 16, 2007. Ms. Laurent noted that Downtown South Bend has submitted a written request to use SCOPE OF SERVICES AND FEE PROPOSED. (SURVEY WORK) COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR APPRAISAL WORK IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSALS FROM RICK PITTS AND ASSOCIATES AND JEROME E. MICHAELS FOR THE SCOPE OF SERVICES AND FEE PROPOSED 23 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area continue ... the LaSalle Hotel parking lot for the fourth annual St. Paddy's Day Tent Party. The event will be held Friday, March 16 from 5:00 -11:00 p.m. They are working with Dennis Andres of the Morris Performing Arts Center to coordinate schedules. Each year this event attracts thousands of visitors to downtown. It has been very well managed and very well received in past years. Downtown South Bend has insurance and indemnification inplace. Staff recommends approval of the request. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved the use of the Hotel LaSalle parking lot by Downtown South Bend for the March 16, 2007 St. Paddy's Day Tent Party. (4) Commission authorization requested from AIDS Ministries/AIDS Assist to use the Wayne Street parking garage for the Rooftop Rendezvous on June 16, July 21 and August 18, 2007. Ms. Laurent noted that AIDS Ministries/AIDS Assist has submitted a written request to use the top floor of the Wayne Street parking garage for the annual summertime Rooftop Rendezvous series of events for 2007. These dates are Saturdays. The attendance at these events has grown each year. All proceeds serve the AIDS impacted community. Security and cleanup has been handled very well in the past and COMMISSION APPROVED THE USE OF THE HOTEL LASALLE PARKING LOT BY DOWNTOWN SOUTH BEND FOR THE MARCH I6, 2007 ST. PADDY'S DAY TENT PARTY 24 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area () continued... staff recommends allowing them to use our property. Mr. Peterson asked if staff obtained the School Corporation's approval to give our approval to this, since we have an agreement with the School Corporation for the use of the top floor. Ms. Laurent responded that she has talked to the facilities manager for the School Corporation. They are more than happy to cooperate with all the events that are held annually in the garage. Authorization for these types of uses is consistent with our agreement with the School Corporation. Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried, the Commission authorized AIDS Ministries/AIDS Assist to use the Wayne Street parking garage for the Rooftop Rendezvous on June 16, July 21 and August 18, 2007. D. Sample-Ewing Development Area (1) Commission approval requested for installation of temporary perimeter fencing at 400 W. Sample/1010 Prairie Avenue. (former South Bend Lathe and Huckins Tool & Die) Mr. Laurent noted that the former South Bend Lathe property and the former Huckins Tool & Die property have become very difficult to secure. Due to various site COMMISSION AUTHOR~zED AIDS MINISTRIES/AIDS ASSIST TO USE THE WAYNE STREET PARKING GARAGE FOR THE ROOFTOP RENDEZVOUS ON JUNE 16, JULY 21 AND AUGUST 18, 2007 25 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) D. Sample-Ewing Central Development Area () continued... conditions and persistent use by vagrants, those efforts have been frustrated by continued trespassing and looting of the property. The location of the west perimeter fence along the South Bend Lathe property is a contributing factor due to the lack of visibility of that fence from the street. It's too easy to cut the fence and get in or out. Additionally, a temporary perimeter fence will need to be installed during demolition, so it's not unexpected. Staff solicited two quotes from fencing contractors for a seven foot fence. CalPro fence quoted a price of $5,205. Michiana Fence quoted a price of $4,875. Staff further noted that earlier this week several deaths and other accidents have occurred in neighboring areas relating to individuals attempting to steal scrap-metal and that we need to have this fence erected immediately to prevent similar instances from occurring on the Commission's property, especially considering the hazards inside the building and evidence that current looting in the building is happening despite our efforts. Staff recommends accepting the quote of Michiana Fence. Mr. Peterson noted that by approving the quotes at this time, the Commission will be finding that an emergency exists, neces- sitating the immediate construction of this fence. 26 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) D. Sample-Ewing Development Area () continued... Upon a motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried, the Commission making the necessary finding and approved the request for proposals and accepted the proposal from Michiana Fence for the scope of services and fee proposed. Mr. Laurent also noted that the South Bend Police and Fire Departments have asked permission to use these buildings for training purposes until they are demolished. Their presence on the property will add additional security to the premises at no charge to the Commission. Staff recommends approval. Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried, the Commission authorized use of the former South Bend Lathe and Huckins Tool & Die properties by the South Bend Police Department and South Bend Fire Department for training purposes until the buildings are demolished. (2) Commission approval requested for proposal for Phase I Environmental Site Assessment in the Sample-Ewing Development Area. (AEP property) Mr. Laurent noted that the AEP property is the smallest piece of the puzzle in completing acquisition of Studebaker Area A. AEP refers to it as the Garst St. substation. AEP no longer needs the property as part of its infrastructure. It has agreed to transfer the property to the Redevelopment Commission COMMISSION APPROVED THE REQUEST FOR PROPOSALS AND ACCEPTED THE PROPOSAL FROM MICHIANA FENCE FOR THE SCOPE OF SERVICES AND FEE PROPOSED COMMISSION AUTHORIZED USE OF THE FORMER SOUTH BEND LATHE AND HUCxINS TOOL 8L DIE PROPERTIES BY THE SOUTH BEND POLICE DEPARTMENT AND SOUTH BEND FIRE DEPARTMENT FOR TRAINING PURPOSES UNTIL THE BUILDINGS ARE DEMOLISHED 27 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) D. Sample-Ewing Development Area continue ... at no charge. To satisfy our due diligence requirement with the U.S. Environmental Protection Agency, we need a Phase I Environmental Assessment conducted on the property before we take title. The quarter acre piece of property has no address, but the tax key number is 18-8021-0849.04. The proposal from Hull Associates for the Phase I Environmental Assessment is for a fee not- to-exceed $2,515. Staff recommends approval. Mr. King asked if the Commission would decline the property if it isn't clean. Mr. Laurent noted that AEP has done a Phase II assessment and removed concrete and debris. Its own requirements stipulate that it must turn over property in an "as clean" condition. Our assessment will confirm that. Upon a motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the request for proposal and accepted the proposal from Hull & Associates for the scope of services and fee proposed. E. Airport Economic Development Area (1) Commission approval requested for proposal for professional services in the Airport Economic Development Area. (Environmental assessment, 52097 Olive Road) COMMISSION APPROVED THE REQUEST FOR PROPOSAL AND ACCEPTED THE PROPOSAL FROM HULL & ASSOCIATES FOR THE SCOPE OF SERVICES AND FEE PROPOSED 28 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area () continued... Mr. Witwer noted that staff requested proposals for a Phase I Environmental Assessment and asbestos inspection. The Commission will be demolishing the structures on this parcel as part of an agreement with Albert and Marilyn Lichtenberger to accommodate the right of way for the OliveBrick Rd. improvements. B&B Environmental has submitted a proposal for $1,900 to complete the assessments. Staff recommends approval. Upon a motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the request for proposal and accepted the proposal from B&B Environmental for the scope of services and fee proposed. F. South Bend Medical Services District There was no business in the South Bend Medical Services District. G. West Washington-Chapin Development Area There was no business in the West-Washington- ChapinDevelopment Area. H. South Side Development Area There was no business in the South Side Development Area. COMMISSION APPROVED THE REQUEST FOR PROPOSAL AND ACCEPTED THE PROPOSAL FROM B&B ENVIRONMENTAL FOR THE SCOPE OF SERVICES AND FEE PROPOSED 29 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) I. Northeast Neighborhood Development Area (1} Filing of Resolution No. 2311 contracting the boundaries of the Northeast Neighborhood Development Area, reducing the allocation area for purposes of tax increment financing and amending the Development Plan for the Northeast Neighborhood Development area and setting a public hearing on Resolution No. 2311 for 10:00 a.m., February 16, 2007. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission accepted for filing Resolution No. 2311 contracting the boundaries of the Northeast Neighborhood Development Area, reducing the allocation area for purposes of tax increment financing and amending the Development Plan for the Northeast Neighborhood Development area and setting a public hearing on Resolution No. 2311 for 10:00 a.m., February 16, 2007. (2} Filing of Resolution No. 2312 expanding the boundaries of the Northeast Neighborhood Development Area, expanding the allocation area for purposes of tax increment financing and amending the Development Plan for the Northeast Neighborhood Development Area setting a public hearing on Resolution No. 2312 for 10:00 a.m., February 16, 2007. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission accepted for filing Resolution No. 2312 expanding the boundaries of the COMMISSION ACCEPTED FOR FILING RESOLUTION N0.2311 CONTRACTING THE BOUNDARIES OF THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA, REDUCING THE ALLOCATION AREA FOR PURPOSES OF TAX INCREMENT FINANCING AND AMENDING THE DEVELOPMENT PLAN FOR THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA AND SETTING A PUBLIC HEARING ON RESOLUTION N0.2311 FOR l O:OO A.M., FEBRUARY 16, 2007 COMMISSION ACCEPTED FOR FILING RESOLUTION N0.2312 EXPANDING THE BOUNDARIES OF THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA, EXPANDING THE ALLOCATION AREA FOR 30 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 6. NEW BUSINESS (CONT.) I. Northeast Neighborhood Development Area continue ... Northeast Neighborhood Development Area, expanding the allocation area for purposes of tax increment financing and amending the Development Plan for the Northeast Neighborhood Development Area setting a public hearing on Resolution No. 2312 for 10:00 a.m., February 16, 2007. J. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. 7. PROGRESS REPORTS Mr. Inks noted that VUalmart opened on the South Side with a lot of fanfare. He wanted to commend Bill Schalliol for the tremendous job he has done on that project and in all of the South Side development. Others in the department have also been a part of the Walmart project. Andy Laurent helped with his brownfields experience. Mr. King also acknowledged the much appreciated efforts of the Department of Public Works getting involved to solve a potential show stopper when the dump was discovered at the site. Ms. Laurent noted that representatives from Gameday Centers plan to attend the next Commission meeting to give a progress report. PURPOSES OF TAX INCREMENT FINANCING AND AMENDING THE DEVELOPMENT PLAN FOR THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA SETTING A PUBLIC HEARING ON RESOLUTION N0.2312 FOR IO:OO A.M., FEBRUARY 16,2~~7 PROGRESS REPORTS 31 South Bend Redevelopment Commission Regular Meeting -January 19, 2007 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Friday, February 2, 2007 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. King made a motion that the meeting be adjourned. Mr. Hojnacki seconded the motion and the meeting was adjourned at 10:50 a.m. Donald E. Inks, Director EXECUTIVE SESSION January 19, 2007 The South Bend Redevelopment Commission met in Executive Session on Friday, January 19, 2007 at 8:45 a.m. The meeting was held in Room 1200 County-City Building, 227 West Jefferson, South Bend, Indiana, for the purposes specified in I.C. 5-14-1.5-6.1(b)(2)(D). Commissioner's Present: Marcia Jones, President; Karl King, Vice President; Greg Downes, Secretary; and Bill Hojanaki. Others Present: Jeff Gibney, Executive Director, Community & Economic Development, Don Inks, Director, Economic Development, Attorney, Shawn Peterson and Pam Paluszewski, Bill Schalliol, Nick Witwer, Andy Laurent, Jennifer Laurent, Suzanne Miller, Chris Dressel, and Liz Maradik. The Commission certifies that no topic was discussed other than the subject matter specified in the Public Notice. The Executive Session was adjourned at 10:00 a.m. CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT Signature Printed Name and Title South Bend Redevelopment Commission 32