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Home My WebLink About07-01-05 Redevelopment Commission MinutesC�J C� SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING July 1, 2005 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. Hardie Blake, Jr. Mr. Greg Downes Members Absent: Mr. Robert W. Hunt, Secretary Legal Counsel: Ms. Cheryl Greene, Esq. Redevelopment Staff: Mr. Don Inks, Director Ms. Cheryl Phipps, Recording Secretary Mr. Tim Williams, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Ms. Jennifer Laurent, Economic Development Specialist Mr. Tedd Schaffer, Economic Development Specialist Others Present: Ms. Michelle Tomchak, Community Development Mr. Gig Young, Manufacturing Technology, Inc. Mr. Tim Hernly, Barnes & Thornburg Ms. Autumn Aggeler, CB Richard Ellis Mr. Jack Olesker, Sit & Knit Cafe, Inc. Ms. Regina Emberton, CB Richard Ellis Mr. Jeff Parrott, South Bend Tribune 2. APPROVAL OF MINUTES There were no Minutes for approval. 3. APPROVAL OF CLAIMS THERE WERE NO MINUTES FOR APPROVAL. Redevelopment Commission Claims submitted July 1, 2005 for approval. FUND 305 SBCDA 2003 BOND Kaser - Spraker Construction, Inc. Ampco Parking Systems 372,111.53 Renovation Main/Colfax Parking 5,031.00 South Bend Redevelopment Commission 3 Regular Meeting — July 1, 2005 RE McCloskey & Associates 3,000.00 324 AIRPORT AEDA Ken Herceg & Associates, Inc. 13,866.50 Abonmarche Consultants of Indiana L.L.C. 450.00 414 SAMPLE -EWING GENERAL Baker General Maintenance 100.00 Hull & Associates, Inc. 37,113.16 420 FUND TIF DISTRICT -SBCDA GENERAL Ampco Parking Systems 890.00 Conspect Services Inc. 899.86 Downtown South Bend, Inc. 1,510.62 City of South Bend 10,436.37 CB Richard Ellis 160.40 424 Fund TIF SBCDA - BUILDING OPERATIONS LVI Ampco Parking Systems 10,025.91 619 BLACKTHORN Meadowbrook Golf Groups, Inc. 8,000.00 $ 463,595.35 Upon a motion by Mr. King, seconded by Mr. Downes COMMISSION APPROVED THE CLAIMS and unanimously carried, the Commission approved the SUBMITTED JULY 1, 2005, AND ORDERED Claims submitted July 1, 2005, and ordered checks to be CHECKS TO BE RELEASED. released. 4. COMMUNICATIONS There were no Communications. THERE WERE NO COMMUNICATIONS 5. OLD BUSINESS There was no Old Business. THERE WAS NO OLD BUSINESS 6. NEW BUSINESS 2 South Bend Redevelopment Commission Regular Meeting — July 1, 2005 A. Tax Abatements (1) Commission approval requested for Resolution No. 2176 approving an application for real property tax deduction for property located at 1702 West Washington Street in the West Washington- Chapin Development Area. (Manufacturing Technology, Inc.) Mr. Tedd Schaffer reported to the Commission that the petitioner, Manufacturing Technology, is a builder of friction welding equipment used in the auto, aerospace, oil, agricultural and medical fields. Manufacturing Technology plans to add a 10,200 square foot addition to its current building located at 1702 W. Washington St. The project will cost approximately $600,000. This will allow the company the space needed to grow its business. The current building is extremely confined and Manufacturing Technology will be required to build a new building, if they do not add -on to the existing building. They prefer staying in their current location on the west side of South Bend. The project will not create any new jobs, but will retain nine (9) permanent jobs with an annual payroll of $285,000 (an average of $31,667 per year). A review of the tax abatements previously granted finds that the petitioner has been associated with or granted one (1) previous tax abatement. The petitioner is in compliance with the reporting requirements for the previous abatement. Mr. Schaffer further reported that the building commissioner has reviewed the petition and finds the property to be properly [A 14 South Bend Redevelopment Commission Regular Meeting — July 1, 2005 zoned for the proposed project. A review of the South Bend Redevelopment designation areas finds that the property is located in the West Washington- Chapin Development Area, which is a Tax Increment Allocation Area; therefore, the abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that the petitioner meets the qualifications for a six (6) year real property tax abatement. Based on a total project cost of $600,000 the cost of the tax abatement is as follows: Mr. Tim Hernly, Barnes & Thornburg, addressed the Commission. Manufacturing Technology, Inc. is one of the precious few businesses remaining on the far west side on Washington Street. The petition for tax abatement is evidence of MTI's commitment to stay at its current location. Adding on to the building will meet the space needs of the company and permit more efficient business. Mr. Gig Young, controller for Manufacturing Technology, commented that some of the current structures were built in the 1860's, although renovated several times. Expansion and more space in the plant is needed and will also provide the possibly for more work. Mr. King expressed his pleasure to see an established company make a commitment to the area, employ other local companies for 11 Estimated taxes over six (6) years Without abatement $119,340 With 6 -year abatement $ 49,327 Estimated cost of 6 -year abatement $ 70,013 Mr. Tim Hernly, Barnes & Thornburg, addressed the Commission. Manufacturing Technology, Inc. is one of the precious few businesses remaining on the far west side on Washington Street. The petition for tax abatement is evidence of MTI's commitment to stay at its current location. Adding on to the building will meet the space needs of the company and permit more efficient business. Mr. Gig Young, controller for Manufacturing Technology, commented that some of the current structures were built in the 1860's, although renovated several times. Expansion and more space in the plant is needed and will also provide the possibly for more work. Mr. King expressed his pleasure to see an established company make a commitment to the area, employ other local companies for 11 South Bend Redevelopment Commission Regular Meeting — July 1, 2005 construction and also purchase the materials for the project locally. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2176 approving an application for real property tax deduction. (Manufacturing Technology, Inc.) B. Housing (1) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Program for property located at 1901 West Orange Street. (Laura F. Roe a.k.a. Laura F. Fisk) Mr. Inks reported that the amount of the loan request is $1,400 and the amount of the grant is $7,500. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved a Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 1901 West Orange Street. (Laura F. Roe a.k.a. Laura F. Fisk) C. South Bend Central Development Area (1) Commission approval requested for Commercial Lease between the City of South Bend, Indiana and Sit & Knit, A Yarn Cafe, .Inc. (129 S. Michigan Street) Ms. Greene reported that the Commercial Lease related to the Sit & Knit Cafe, Inc. was previously approved by the Commission at its meeting of June 17, 2005. In negotiating G COMMISSION APPROVED RESOLUTION NO. 2176 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION. (MANUFACTURING TECHNOLOGY, INC.) COMMISSION APPROVED A LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 1901 WEST ORANGE STREET. (LAURA F. ROE A.K.A. LAURA F. FISK) South Bend Redevelopment Commission Regular Meeting — July 1, 2005 the final terms of the Lease, the tenant requested a material change to the Commission's standard form of Lease, thus requiring that the matter be brought to the Commission's attention for approval. Section 4.3 which references the "common areas expense" includes a pro rata share related to taxes. The tenant requested a cap on real estate taxes. Subsequently, a cap of $1.75 per square foot over the term of the Lease was negotiated Staff requests approval of the Lease with the real estate tax cap as negotiated. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved a Commercial Lease between the City of South Bend, Indiana and Sit & Knit, A Yarn Cafe, Inc. with acap on real estate taxes. (129 S. Michigan Street). 1C Mr. Olesker of Sit & Knit, thanked the Commission and staff for acting so quickly on the transaction. D. Sample -Ewing Development Area (1) Commission approval requested for Certificate of Completion for project located at Lot #4 in the Oliver Industrial Park in the Sample -Ewing Development Area. (Hill Truck Sales, Inc.) Mr. Laurent reported that the Certificate of Completion is the Commission's statement of satisfaction with the constructed improvements of the developer. The project is located within the Oliver Industrial Park and retains an existing neighboring business in need of expansion. Lot #4 was sold to Hill Truck Sales, Inc. on October 25, 2004. Hill Truck Sales has been located in the corridor c, 6 COMMISSION APPROVED A COMMERCIAL LEASE BETWEEN THE CITY OF SOUTH BEND, INDIANA AND SIT & KNIT, A YARN CAFE, INC. WITH ACAP ON REAL ESTATE TAXES. (129 S. MICHIGAN STREET. South Bend Redevelopment Commission Regular Meeting — July 1, 2005 for sixty (60) years. The terms were set forth in a Development Agreement approved by the Commission on October 8, 2004. Hill Truck Sales invested approximately $250,000 into a new vehicle staging area located on Lot #4, as well as $150,000 in landscaping and improvements on the front side of its existing property. Mr. Laurent noted that Building Department staff has verified all improvements were completed according to the building permit and the project meets with Building Department approval. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved a Certificate of Completion for project located at Lot #4 in the Oliver Industrial Park in the Sample - Ewing Development Area. (Hill Truck Sales, Inc.) E. Airport Economic Development Area (1) Commission approval requested for proposal for demolition services for property located in the Airport Economic Development Area. (5825 Brick Road) Ms. Greene reported that the property located at 5825 Brick Road was purchased previously by the City, and the former property owners were holding over possession while preparing to move to a new location. An indemnification agreement was in place between the parties. The property is now vacant and in need of demolition. Staff solicited a demolition contract with Warner & Sons, Inc. and a proposal was submitted in the amount of $16,665. Staff requests approval. G COMMISSION APPROVED A CERTIFICATE OF COMPLETION FOR PROJECT LOCATED AT LOT #4 IN THE OLIVER INDUSTRIAL PARK IN THE SAMPLE -EWING DEVELOPMENT AREA. (HILL TRUCK SALES, INC.) CJ South Bend Redevelopment Commission Regular Meeting — July 1, 2005 Ms. Jones asked when the contractor could begin demolition. Ms. Greene responded July 5 or 6. Upon a motion by Mr. King, seconded by Mr. Blake and unanimously carried, the Commission approved the request for demolition services in the Airport Economic Development Area and authorized staff to retain Warner & Sons, Inc. based on the scope of services and fee proposed. F. South Bend Medical Services District COMMISSION APPROVED THE REQUEST FOR DEMOLITION SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN WARNER & SONS, INC. BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. There was no business in the South Bend Medical THERE WAS NO BUSINESS IN THE SOUTH BEND Services District. MEDICAL SERVICES DISTRICT. G. West Washington - Chapin Development Area There was no business in the West Washington- THERE WAS NO BUSINESS IN THE WEST Chapin Development Area. WASHINGTON- CHAPIN DEVELOPMENT AREA. H. South Side Development Area There was no business in the South Side THERE WAS NO BUSINESS IN THE SOUTH SIDE Development Area. DEVELOPMENT AREA. I. Northeast Neighborhood Development Area There was no business in the Northeast THERE WAS NO BUSINESS IN THE NORTHEAST Neighborhood Development Area. NEIGHBORHOOD DEVELOPMENT AREA. J. Other There was no Other business. THERE WAS NO OTHER BUSINESS. 7. PROGRESS REPORTS There was no report. PROGRESS REPORTS 8 LA i A IP"J= South Bend Redevelopment Commission Regular Meeting — July 1, 2005 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is a Special Meeting scheduled for Friday, July 5, 2005 at 8:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. King made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 10:15 a.m. Donald E. Inks, Director E NEXT COMMISSION MEETING ADJOURNMENT &UOL) I Marcia I. Jones, e dent