Loading...
HomeMy WebLinkAbout09-17-04 Redevelopment Commission MinutesN 14 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING September 17, 2004 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana it I'll) N lKe111I 1 Members Present: Ms. Marcia Jones, President Mr. Philip J. Faccenda, Vice President Mr. Matt Kahn, Secretary Mr. Robert W. Hunt Members Absent: Mr. Hardie Blake, Jr. Legal Counsel: Ms. Cheryl Greene, Esq. Redevelopment Staff: Mr. Bill Schalliol, Economic Development Specialist Ms. Cheryl Phipps, Recording Secretary Mr. Tim Williams, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Ms. Jennifer Hughes, Economic Development Specialist Mr. Michael Beitzinger, Economic Development Specialist Ms. Sharon Kendall, Executive Director Others Present: Ms. Pam Paluszewski, Legal Dept. Mr. Peter Nemeth Mr. Peter Mullen, Eckler -Lahey Lumber Mr. David Hatch, Habitat for Humanity Mr. Paul Hartz, Mack Tool and Engineering Mr. Mel Hartz, Mack Tool and Engineering 2. APPROVAL OF MINUTES There were no Minutes for approval. 3. APPROVAL OF CLAIMS THERE WERE NO MINUTES FOR APPROVAL. Redevelopment Commission Claims submitted September 17, 2004 for approval. FUND 305 SBCDA 2003 BOND Kone $ 47,048.40 Meridian Title Corp 46,585.00 1 Redevelopment Commission Meeting Regular Meeting — September 17, 2004 3. APPROVAL OF CLAIMS (CONT.) 324 FUND — AIRPORT Dave Talboom Lawncare/Landscape, Inc. 245.00 City of South Bend 2,544.58 Blackthorn Corporate Park 17,278.14 CFH Landscape Services, Inc. 825.00 414 SAMPLE -EWING GENERAL Housing Development Corporation 176.00 Schopf & Weiss 17.76 Fitzmaurice Landscaping 400.00 CFH Landscape Services, Inc. 3,516.00 420 FUND TIF DISTRICT -SBCDA GENERAL Cornerstone Consulting, L.L.0 7,076.00 CFH Landscape Services, Inc. 305.00 Michiana Lock & Key, Inc. 5.50 Business Districts, Inc. 5,172.72 AEP 798.98 South Bend Water Works 756.80 CB Richard Ellis 714.72 Lehman & Lehman 2,391.25 Public Works 1,936.53 A 424 FUND TIF SBCDA - BUILDING OPERATIONS Mikolajewski & Associates, Inc. 1,115.56 CB Richard Ellis 150.00 428 FUND AIRPORT 2003 BOND Homecoming Financial 30,000.00 First Indiana Bank, NA 22,900.00 South Bend Water Works 394.53 Board of Park Commissioners 1,500.00 The Troyer Group 14,726.00 DLZ 380.00 619 BLACKTHORN Meadowbrook Golf Group, Inc. 7,500.00 2 $ 216,459.47 Redevelopment Commission Meeting Regular Meeting — September 17, 2004 3. APPROVAL OF CLAIMS Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried, the Commission approved the Claims submitted September 17, 2004, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS Ms. Jones asked that Item 6.K.(1) be moved to the top of New Business. There was no objection and the item was so moved. C, K. Other (1) Commission approval requested for Resolution No. 2095 commending Matthew M. Kahn for exemplary service to the South Bend Redevelopment Commission. Ms. Jones read Resolution No. 2095 into the record. RESOLUTION NO. 2095 A RESOLUTION COMMENDING MATTHEW M. KAHN FOR EXEMPLARY SERVICE TO THE SOUTH BEND REDEVELOPMENT COMMISSION WHEREAS, many people express concern about urban problems and their impact upon the community; and C, COMMISSION APPROVED THE CLAIMS SUBMITTED SEPTEMBER 17, 2004, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS Redevelopment Commission Meeting IL Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) I{. Other (1) continued... WHEREAS, some people demonstrate their concern by personal involvement in the process of seeking solutions; and WHEREAS, a very few people are both willing and able to bring a degree of dedication that culminates in real, measurable progress, enriching the life of the community; and WHEREAS, Matt served as a member of the South Bend Redevelopment Commission since February 18, 2000; and WHEREAS, Matt brought his business and leadership skills, experience, and dedication to community to the Commission; and WHEREAS, during his tenure on the Commission Matt has had an active role in projects such as The Villas at Blackthorn, American Home Dreams, and the Wenger Home Rehab; the expansion of Crowe Chizek, Press Ganey, Memorial Hospital, Environmental Health Labs and Bosch; expansion of the South Bend Chocolate Cafe, the business attraction of A. J. Wright; the expansion and relocation of Rose Fuel, Tech Data, Gibbs Wire, Deluxe Sheet Metal, Tire Rack, Studebaker Museum and The Vine restaurant; designation of the South Side Development Area, the Northeast Neighborhood Development Area, and the expansion of the Blackthorn Development Area; the Studebaker /Oliver Plow Works redevelopment project and the Oliver G Redevelopment Commission Meeting IL Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) K. Other (1) continued... Industrial Park; the redevelopment of Scottsdale Mall with the Erskine Village project; and designation of the state's first STIF district; and WHEREAS, Matt unselfishly gave of his time for the betterment of the community with no concern for individual honor or recognition, and has played an instrumental role in setting policy and negotiating through the details of many important projects; and WHEREAS, Matt has never forgotten the public that he serves and has been committed to the public process of decision making; and NOW, THEREFORE, BE IT RESOLVED that the South Bend Redevelopment Commission hereby recognizes Matthew M. Kahn for his exemplary commitment and distinguished service to the South Bend Redevelopment Commission and the City of South Bend; thanks him for the outstanding contributions he has made; and declares it will sincerely miss his diligent work and his presence at future meetings. ADOPTED at a meeting of the South Bend Redevelopment Commission held on September 17, 2004, at 1308 County -City Building, 227 W. Jefferson Boulevard, South Bend, Indiana 46601. Ms. Jones presented Mr. Kahn with a framed copy of the resolution and reiterated her L G G 14 Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) K. Other (1) continued... appreciation for his contributions to the Commission. Upon a motion by Mr. Hunt, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 2095 commending Matthew M. Kahn for exemplary service to the South Bend Redevelopment Commission. A. Public Hearing (1) Public Hearing on Resolution No. 2084 amending the Sample -Ewing Development Area Development Plan. Mr. Laurent noted that Resolution No. 2084 adds two properties to the Sample -Ewing Development Area Acquisition List. The first is tax key number 18- 7018 -0743, located at 714 E. Sample St., owned by Art Mosaic Tile Co.; the second property is tax key number 18- 8006 -0338, owned by Peter H. Mullin and Peter J. Nemeth. This is a 0.53 acre parcel located on the west side of Franklin St. just south of Broadway and is used as employee parking and overflow space for the Eckler- Lahey Lumber Company. Mr. Laurent noted that these two properties are located in an area previously determined to be blighted (the Sample -Ewing Development Area). Those findings still exist, due to a lack of development in the area, cessation of growth in the area, and numerous structures that are visibly Col COMMISSION APPROVED RESOLUTION NO. 2095 COMMENDING MATTHEW M. KAHN FOR EXEMPLARY SERVICE TO THE SOUTH BEND REDEVELOPMENT COMMISSION. Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... deteriorating as well as overall conditions in the area that may undermine efforts to improve the project area. Staff believes that acquisition of these properties will be of public benefit and utility by allowing for the development and expansion of the southeast park in the case of the Art Mosaic Tile property and an inner -city light industrial park in the case of the Mullen/Nemeth property. Acquisition and redevelopment of these properties will serve the City and Commission's purpose in the area in eliminating blight and blighting conditions. Acquisition of the property is both reasonable, appropriate and necessary in order to implement the Sample -Ewing Development Area Development Plan and, in the case of the Mullen/Nemeth property, the Studebaker- Oliver Plow Works Redevelopment Strategy. The proposed acquisition of these properties conforms to both the Studebaker- Oliver Redevelopment Strategy and the Sample -Ewing Development Area Development Plan. Staff recommends approving Resolution No. 2084. Mr. Inks asked that the following items be entered into the record: (1) A copy of the Notice of Hearing; (2) A copy of Resolution No. 2084; (3) An affidavit from Carol Smith of the South Bend Tribune that the Notice of Hearing was published in that newspaper on September 3, 2004; (4) An affidavit from Richard Andrysiak, Tri- County News, that the Notice of Hearing was published in that newspaper on September 3, 2004; (5) a G Redevelopment Commission Meeting IL Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... memo from staff stating that the taxing units were notified; (6) a memo from staff stating that affected property owners and registered neighborhood associations were notified; (7) There was one remonstrance letter filed by 10:00 a.m., September 17, 2004 concerning the property owned by Peter J. Nemeth and Peter H. Mullen. Ms. Greene read the remonstrance letter into the record. September 15, 2004 Ms. Marcia L Jones, President Redevelopment Commission, City of South Bend 1200 County -City Building 227 W. Jefferson Blvd. South Bend, IN 46601 -1830 Dear Ms. Jones: I am writing regarding the amendment to the Sample -Ewing Development Plan (Resolution No. 2084) wherein you are seeking to add property (Key No. 18 -8006- 0388) belonging to Peter Mullen and me to the List of Properties to be Acquired. Peter Mullen and I are opposed to this proposal and to Resolution No. 2084 because: 1. No public purpose will be served by taking our property; and C, 8 Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... 2. The property you are seeking to take is part of the total property being used by Eckler -Lahey Lumber Company and represents a 'piece-meal " taking of our property which diminishes the value of the total property which we own in the area. Please consider this letter as a remonstrance and objection to adding our property (Key No. 18- 8006 -0338) to the List of Properties to be Acquired. Very truly yours, Peter J. Nemeth ., Peter K Mullen Ms. Greene noted that the amendment of a redevelopment plan to add property to the acquisition list is governed in part by I.C. 36- 7 -14 -17.5. The notice was published in accordance with I.C. 5 -3 -1 stating the time for hearing of written remonstrances. Under I.C. 36 -7 -14 -17.5, when the Commission proposes to amend a plan, it is not required to have evidence or make findings that were required when the Commission originally established the development area. However, the Commission must make the following findings on the record before approving the amendment: (1) That the amendment is reasonable and appropriate when considered in relation to the original plan and purposes of the chapter and that the proposed amendment does conform to the redevelopment plan for the area. Those findings are included in Resolution No. 2084. G Redevelopment Commission Meeting (61V Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... If the Commission adopts Resolution No. 2084 it would be entering its findings consistent with the statute. However, the findings must be based upon the evidence presented to the Commission today by staff. Ms. Greene noted that the remonstrance from Peter Mullen and Peter Nemeth raises two primary objections: (1) The public purpose in the Commission's proposed acquisition of the property and (2) acquisition of the property would result in a piece -meal taking thereby diminishing the value of other property adjacent thereto. Ms. Greene further advised the Commission that Mr. Laurent has indicated to the Commission that the property is located in an area declared blighted. Mr. Laurent further reported to the Commission that acquisition of the properties is consistent with and in furtherance of the redevelopment plan for the area. Ms. Greene asked the Commission if they had any questions for staff regarding the public purpose or the use of the property. Ms. Jones asked if the Mullen/Nemeth property is the last of the properties to be acquired for the industrial park. Mr. Laurent responded that it is the last of six properties to be acquired for the industrial park. Ms. Jones asked if the properties to the east and to the south are not being acquired. Mr. 10 Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Laurent responded that that is correct, Studebaker Area A is bounded by Franklin St., Sample, Prairie and a railroad track to the south. Ms. Jones opened the Public Hearing for any one who wished to speak regarding Resolution No. 2084. PETER J. NEMETH: My name is Peter J. Nemeth. I am one of the owners of the property that was just talked about. I won't repeat what was talked about in the letter. Basically, we feel that taking part of our property diminishes the overall all value. Because of that we feel compelled to take whatever legal steps we have to take to protect our interests. That is basically what our position is. If you have any questions about that, I'd be happy to answer them. PETER MULLEN: We use the property. We park cars there. There are eight cars parked there this morning. Over the last twenty -five years that we've been there, we've stored lumber there for many of the contractors. All the lumber for Memorial Hospital has been stored there. All the lumber for the YWCA has been stored there- --just within the last twelve months. It's secure. I'm able to separate it from the rest of our inventory. Insurance companies require us to separate it. Superior, who's doing the Jefferson St. bridge has asked us to store lumber for them, as well as their trailers that they can't put in Century Center's C, 11 PUBLIC HEARING ON RESOLUTION NO. 2084 Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... parking lot. Casteel could not put all of their lumber on site down at Memorial Hospital. Christman couldn't put all of their lumber on site at the YWCA. This is just within the last twelve months. I can go back twenty -five years where we've done the same thing. It's a piece of property we need and that we want. I see no useful public purpose for it, to take it away from us at this point in time. Ms. Jones closed the Public Hearing. Mr. Hunt noted that Resolution No. 2084 covers both pieces of property. He asked if the properties could be considered separately. Ms. Greene responded that there is no remonstrance on the Art Mosaic property, so that property could go forward without hindrance. Ms. Greene spelled out the Commission's options as follows: (1) The Commission could amend or modify Resolution No. 2084 if the Commission determines to sustain the remonstrance that has been presented on the Nemeth/Mullen parcel (2) If the Commission overrules the remonstrance, it may adopt Resolution No. 2084 as presented. Depending on the action the Commission determines to take, the remonstrator could pursue an appeal of the Commission's actions. Mr. Faccenda indicated that he would like to move to separate the two properties from Resolution No. 2084. ILI 12 Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Ms. Greene asked if he would like staff to come back and present the as two separate resolutions, or whether the Commission would prefer to modify Resolution No. 2084 to delete the Nemeth/Mullen parcel. Mr. Hunt stated that he believes it confuses the issue to have both parcels on the same resolution and inquired whether it was necessary to come back with two separate resolutions? Ms. Greene responded that staff could present the properties on two separate resolutions if the Commission so desired. The staff would be required to again go through the noticing procedures required by IC 36 -7 -14 -17.5. Ms. Greene asked the Commission whether it preferred to act only on the property on which there was no remonstrance or whether the Commission wished to act on both properties at this time? Mr. Kahn said that his concern is that one parcel on which there is no remonstrance would be held up for the other which has a remonstrance. Mr. Hunt said that he believed they could proceed with the one that is not in dispute. Ms. Greene noted that the grounds for a remonstrance concern the public utility and benefit of the proposed project. She understood the Commission to be expressing a concern that, if it proceeded to approve C 13 Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Resolution No. 2084 as proposed, and there was a challenge to the Commission's action, if a court overturned the Commission's actions at this proceeding, it might result in the removal of both of properties from the Acquisition List. Mr. Nemeth asked when the next Commission meeting would be. Ms. Greene responded that it would be on October 8. Mr. Nemeth suggested that consideration of Resolution No. 2084 be continued until October 8th to see if something could be worked out in the meantime. Ms. Jones asked if a delay until October 8 would impede anything for either side? Both sides agreed that it would not be problematic to continue consideration until October 8 to try to resolve differences. Ms. Greene noted that the Commission's primary concern should be that the parties which are affected by these proceedings have the opportunity to be heard by the Commission and to present evidence. Therefore, she advised that the Commission could table Resolution No. 2084 until the October 8 meeting as long as there is no objection. Mr. Laurent asked if it would be necessary to re- advertise. Ms. Greene responded that it would not as long as the original resolution is to be acted upon either as presented or as modified. A substitute resolution, however, C, 14 Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... would require re- advertising. Mr. Hunt stated that he would prefer to consider the parcels separately. (2) Commission approval requested for Resolution No. 2084. Upon unanimous consent. Item 6.A.(2) was tabled until the October 8, 2004 meeting. (3) Public Hearing on Resolution No. 2088 amending Resolution No. 2042 which appropriated monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2004, and ending December 31, 2004, including all outstanding claims and obligations, fixing a time when the same shall take effect. Mr. Inks explained that Resolution No. 2088 pertains to Fund 424 which is the budget for the Wayne St. garage and retail operation. The budget has been changed. While there has been increased use in that facility and revenues will be more than in prior years, it will not achieve the total revenues that had originally been forecast. We are now anticipating that the revenues for the year will be about $186,000 which is less than the $207,000 originally projected. There are two significant expense increases. One is in the area of payroll in the amount of $13,000. The other is in the area of repair and maintenance of buildings in the amount of C" 15 ITEM 6.A.(2) WAS TABLED UNTIL THE OCTOBER 8, 2004 MEETING Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) A. Public Hearing (3) continued... $20,000. Overall, the increase is $29,000 more than the original budget. Mr. Inks noted that the expenses projected now ($195,000) are close to the actual expenses of 2003 ($190,000); the total revenues projected for 2004 will exceed those of 2003 which were $173,000. There was apparently some miscommunication when the original budget was passed. Some capital items were excluded that should have been included and the salaries were erroneously stated at a lower level. Payroll was budgeted at $59,000. Payroll in past years were $63,000 in 2003 and $59,000 in 2002. There have been no significant changes in staffing. There should have been consistent payroll numbers in the budget. Mr. Inks asked that the following items be entered into the record: (1) a copy of the Notice of Hearing; (2) a copy of Resolution No. 2088; (3) a copy of the affidavit from Carol Smith, Classified Manager of the South Bend Tribune, stating that the Notice of Hearing was published in that newspaper on September 3, 2004; and (4) a copy of the affidavit from Richard J. Andrysiak, Office Manager of the Tri- County News, that the Notice of Hearing was published in that newspaper on September 3, 2004. Ms. Jones opened the Public Hearing for anyone who wished to speak regarding Resolution No. 2088. There was no one who wished to speak. Ms. Jones closed the Public C, 16 PUBLIC HEARING ON RESOLUTION NO. 2088 Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) A. Public Hearing (3) continued... Hearing for whatever action the Commission wished to take. (4) Commission approval requested for Resolution No. 2088. Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 2088 amending Resolution No. 2042 which appropriated monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2004, and ending December 31, 2004, including all outstanding claims and obligations, fixing a time when the same shall take effect. B. Tax Abatements (1) Commission approval requested for Resolution No. 2098 approving an application for real property tax deduction for property located at 2306 Linden Ave. and 2229 W. Orange St. in the West Washington- Chapin Development Area. (Habitat for Humanity) Mr. Beitzinger gave the staff report on the project. The petitioner proposes to construct two (2) new single family homes of approximately 1,120 square feet on the above identified lots. The homes will have three bedrooms and one bath. Due to limited construction funding, the homes will be built on crawlspaces. The estimated market value 17 COMMISSION APPROVED RESOLUTION NO. 2088 AMENDING RESOLUTION NO. 2042 WHICH APPROPRIATED MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2004, AND ENDING DECEMBER 31, 2004, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT. [A Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) B. Tax Abatements (1) continued... of each home is $69,000. The total value of the project is estimated at $138,000. Habitat for Humanity has been granted four previous abatements since 1998. The building commissioner has reviewed the petition and finds the properties to be properly zoned for the proposed use. The properties are located in the West Washington- Chapin Development Area; therefore, the abatements must first be approved by the South Bend Redevelopment Commission. The project meets the qualifications for a five -year residential tax abatement under the tax abatement ordinance. Mr. Beitzinger gave the estimated cost of the abatement as follows, based on a project cost of $138,000. Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 2098 approving an application for real property tax deduction for property located at 2306 Linden Ave. and 2229 W. Orange St. in the W. COMMISSION APPROVED RESOLUTION NO. 2098 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2306 LINDEN AVE. AND 2229 W. ORANGE ST. IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA. (HABITAT FOR HUMANITY Estimated Taxes Over 5 Yrs Without Abatement $12,534 With 5 Yr Abatement $7,181 Estimated Cost of 5 Yr Abatement $5,353 Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 2098 approving an application for real property tax deduction for property located at 2306 Linden Ave. and 2229 W. Orange St. in the W. COMMISSION APPROVED RESOLUTION NO. 2098 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2306 LINDEN AVE. AND 2229 W. ORANGE ST. IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA. (HABITAT FOR HUMANITY Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) B. Tax Abatements (1) continued... West Washington- Chapin Development Area. (Habitat for Humanity) (2) Commission approval requested for Resolution No. 2099 approving an application for real property tax deduction for property located at 225 Garst Street in the Sample -Ewing Development Area. (James F. and Sandra M. McCune) Mr. Beitzinger gave the staff report on the project. Mr. and Mrs. McCune have purchased the property at 225 Garst Street and plan to build a 5,850 sft building to house Mr. McCune's masonry business. The building will be a steel building with an all brick front and will have 2,250 sft of office and 3,600 sft. of shop space. Initial plans call for Mr. McCune to lease a portion of the building until his business grows into the entire building. The total cost of the project is estimated at $250,000. It is estimated that the project will create three (3) new jobs within the first year, representing a new annual payroll of $72,000. The project is also expected to retain eleven (11) existing jobs, representing an annual payroll of $288,200. A review of the tax abatements previously granted finds that the petitioner has not been granted any previous tax abatements. The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. 19 A Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) B. Tax Abatements (2) continued... The petitioner has completed and submitted the required Memorandum of Agreement for the requested abatement. The property located at 225 Garst Street is located in the Sample Ewing Development Area, which is a Tax Increment Allocation Area; therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. The project meets the qualifications for a five (5) year real property tax abatement under the tax abatement ordinance. Mr. Beitzinger estimated the cost of the abatement as follows, based on a project cost of 250,000: Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 2099 approving an application for real property tax deduction for property located at 225 Garst Street in the Sample -Ewing Development Area. (James F. and Sandra M. McCune) all COMMISSION APPROVED RESOLUTION NO. 2099 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 225 GARST STREET IN THE SAMPLE -EWING DEVELOPMENT AREA. (JAMES F. AND SANDRA M. MCCUNE) Estimated Taxes Over 5 Yrs Without Abatement $39,005 With 5 Yr Abatement $15,602 Estimated Cost of 5 Yr Abatement $23,403 Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 2099 approving an application for real property tax deduction for property located at 225 Garst Street in the Sample -Ewing Development Area. (James F. and Sandra M. McCune) all COMMISSION APPROVED RESOLUTION NO. 2099 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 225 GARST STREET IN THE SAMPLE -EWING DEVELOPMENT AREA. (JAMES F. AND SANDRA M. MCCUNE) Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) B. Tax Abatements (3) Commission approval requested for Resolution No. 2100 approving an application for real property tax deduction for property located at 2820 Viridian Drive in the Airport Economic Development Area. (Mack Tool and Engineering) Mr. Inks noted that this is the last tax abatement Mr. Beitzinger will present. He has accepted a position as a loan officer with Teachers' Credit Union. Mr. Inks noted that over the years it has been his pleasure to take compliments from a number of people with whom Mike has worked in the tax abatement program. He expressed his appreciation to Mike for all his good work. Ms. Greene echoed that compliment, saying Mike has been wonderful to work with and has represented the Commission and the City of South Bend very well. We'll all miss him. (Mr. Faccenda left the meeting at this point to attend another engagement.) Mr. Beitzinger gave the staff report on the project. Mack Tool & Engineering, Inc. is a prototype and experimental machining parts business in the aerospace and medical industries. They are planning a 10,000 sft building addition to their property at 2820 Viridian Drive. The building addition will provide new shop space and new bathrooms. The project also includes renovating the offices, and making electric and telephone related improvements. The IL 21 Redevelopment Commission Meeting IL Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) B. Tax Abatements (3) continued... total cost of the project is estimated at $350,000. Per the petition, it is estimated that the project will create four (4) new jobs within the first year, representing a new annual payroll of $180,000. The estimated annual salary for each new job will be $45,000. The project is also expected to retain forty -two (42) existing jobs, representing an annual payroll of $2,604,575. The petitioner has been granted five previous tax abatements since 1990. The petitioner is in compliance with the reporting requirements for each of the previous abatements. The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. The petitioner has completed and submitted the required Memorandum of Agreement for the requested abatement. The property located at 2820 Viridian Drive is located in the Airport Economic Development Area, which is a Tax Increment Allocation Area; therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. The project meets the qualifications for a five (5) year real property tax abatement under IL 22 Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) B. Tax Abatements (3) continued... the tax abatement ordinance. Mr. Beitzinger estimated the cost of the abatement as follows, based on a project cost of $350,000: Mr. Paul Hartz from Mack Tool noted that their core competancy is in C & C machines, basically producing parts from all stock and selling them to our customers. In order to compete in today's market the company has bought new equipment that makes its current employees more productive. It has also had to add value to what it sells to its customers by assembly work, packaging and cleaning, selling more of a finished product. Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried the Commission approved Resolution No. 2100 approving an application for real property tax deduction for property located at 2820 Viridian Drive in the Airport Economic Development Area. (Mack Tool and Engineering) 23 COMMISSION APPROVED RESOLUTION NO. 2100 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2820 VIRIDIAN DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (MACK TOOL AND ENGINEERING) Estimated Taxes Over 5 Yrs Without Abatement $53,125 With 5 Yr Abatement $21,250 Estimated Cost of 5 Yr Abatement $31,875 Mr. Paul Hartz from Mack Tool noted that their core competancy is in C & C machines, basically producing parts from all stock and selling them to our customers. In order to compete in today's market the company has bought new equipment that makes its current employees more productive. It has also had to add value to what it sells to its customers by assembly work, packaging and cleaning, selling more of a finished product. Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried the Commission approved Resolution No. 2100 approving an application for real property tax deduction for property located at 2820 Viridian Drive in the Airport Economic Development Area. (Mack Tool and Engineering) 23 COMMISSION APPROVED RESOLUTION NO. 2100 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2820 VIRIDIAN DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (MACK TOOL AND ENGINEERING) Redevelopment Commission Meeting 46� Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) C. Housing (1) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 709 Woodcliff Drive. (Gertrude Clyburn & Vadis Schwinn) Mr. Inks noted that the loan is in the amount of $1,450. The grant is in the amount of $7,500. Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission approved the Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 709 Woodcliff Drive. (Gertrude Clyburn & Vadis Schwinn) (2) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 2421 W. Fisher St. (Dorothy Finney) Mr. Inks noted that the loan is in the amount of $1,750. The grant is in the amount of $7,500. Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission approved the Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 2421 W. Fisher St. (Dorothy Finney) 24 COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 709 WOODCLIFF DRIVE. (GERTRUDE CLYBURN & VADIS SCHWINN) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 2421 W. FISHER ST. (DOROTHY FINNEY) Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (1) Commission approval requested for proposal to prepare designs and specifications for moving water and electrical services at the Hotel LaSalle in the South Bend Central Development Area. Mr. Mathia noted that on June 18, 2004 the Redevelopment Commission signed a letter proposal with Stephen Eddy to provide services as a mechanical engineer to inspect the HVAC system in the Hotel LaSalle and to make recommendations for this winter. During his inspection, it was determined that additional assistance was needed for the preparation of designs and specifications for filling the vaults under the sidewalk. The additional assistance is needed to prepare specifications to move the electrical and water services for the hotel. Because of his familiarity with the hotel, Mr. Eddy was requested to submit a proposal to prepare those specifications. In his proposal the cost for examining and preparing bid specifications for the water service is $1,300.00 and for the electrical service it is $1,200.00. The total is $2,500.00. The Redevelopment Commission is requested to: (1) approve the attached letter proposal from Mr. Eddy; and (2) authorize funding up to $2,800.00 for the work to complete the review and specifications for moving the electrical service and the water main. The additional funds are to cover any contingencies. Staff recommends approval of the proposal and the funding amount. 25 Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (1) continued... Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission approved the request for proposal to prepare designs and specifications for moving water and electrical services at the Hotel LaSalle in the South Bend Central Development Area and accepted the proposal from Stephen Eddy for the scope of services and fee proposed. COMMISSION APPROVED THE REQUEST FOR PROPOSAL TO PREPARE DESIGNS AND SPECIFICATIONS FOR MOVING WATER AND ELECTRICAL SERVICES AT THE HOTEL LASALLE IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM STEPHEN EDDY FOR THE SCOPE OF SERVICES AND FEE PROPOSED. (2) Commission approval requested for proposal to prepare bid specifications for asbestos abatement at the Hotel LaSalle in the South Bend Central Development Area. n Staff is in the process of preparing bid specifications for filling the vaults under the sidewalk along the north side of the Hotel LaSalle. During consultations with Board of Public Works engineers it was determined that it may be cost effective to remove four boilers and two hot water tanks that are no longer used prior to filling the vaults. The boilers and hot water tanks are located in the basement. They could be cut up and removed in larger pieces through the vaults. Once the vaults are closed the boilers would have to be cut into smaller pieces and removed through the hotel's stairways and elevators. Unfortunately, the boilers were insulated using asbestos. Their removal will require asbestos abatement procedures to be followed. The removal of the boilers and hot water tanks will be included as an alternative in the bid documents for filling the vaults. 26 COMMISSION APPROVED THE REQUEST FOR PROPOSAL TO PREPARE DESIGNS AND SPECIFICATIONS FOR MOVING WATER AND ELECTRICAL SERVICES AT THE HOTEL LASALLE IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM STEPHEN EDDY FOR THE SCOPE OF SERVICES AND FEE PROPOSED. Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (2) continued... The bid documents are being prepared by Paul Fujawa. Staff requested Grauvogel & Associates to submit a proposal for preparing the bid specifications for the asbestos removal and for overseeing the actual work. Paul Fuj awa will incorporate the bid specifications into his bid document. Grauvogel & Associates were requested to submit a proposal because of their familiarity with the building. Grauvogel & Associates completed an asbestos inspection of the hotel for the Commission in March 2002 when acquisition of the hotel was being considered. The cost IL for preparing the specifications is $1,500.00 and for overseeing the asbestos abatement the cost is $6,600.00. The total is $8,100.00. The Redevelopment Commission is requested to: (1) approve the attached proposal from Grauvogel & Associates; and (2) authorize funding up to $9,200.00 for preparing the specifications and for overseeing the abatement. The work related to overseeing the abatement process will not be authorized if it is determined that removal of the boilers is too costly. This determination will be made in consultation with Board of Public Works engineers and the Commission. Additional funding of $1,100.00 is included to cover any contingencies. Staff recommends approval of the proposal and the funding amount. Ms. Jones noted that the Commission has 27 Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (2) continued... requested that Mr. Mathia provide a running total of expenses related to the LaSalle Hotel, which he will do at each executive session. Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission approved the request for proposal to prepare bid specifications for asbestos abatement at the Hotel LaSalle in the South Bend Central Development Area and accepted the proposal from Grauvogel & Assoc. for the scope of services and fee proposed. E. Sample -Ewing Development Area (1) Commission approval requested for professional services in the Sample -Ewing Development Area. (Appraisal, former South Bend Lathe) Mr. Laurent noted that staff has been in discussions with the property owner regarding acquisition of the former South Bend Lathe building as part of the Studebaker Area A redevelopment. One appraisal has been conducted. This second appraisal would allow the Commission to set an offering price to begin negotiations for acquisition of this 400,000 sft building. The building is on the Sample -Ewing Development Area Acquisition List. Proposals were received from Ralph D. Lauver, MAI for 4,250 and from R.E. Pitts & Assoc. for $5,750. Staff recommends 28 COMMISSION APPROVED THE REQUEST PROPOSAL TO PREPARE BID SPECIFICATIONS FOR ASBESTOS ABATEMENT AT THE HOTEL LASALLE IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM GRAUVOGEL & Assoc. FOR THE SCOPE OF SERVICES AND FEE PROPOSED. Redevelopment Commission Meeting CRegular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) E. Sample -Ewing Development Area (1) continued... accepting the proposal from Ralph Lauver. Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for proposals for professional services in the Sample -Ewing Development Area and accepted the proposal from Ralph D. Lauver for the scope of services and fee proposed. F. Airport Economic Development Area (1) Filing of Resolution No. 2090 amending the Airport Economic Development Area Development Plan, and setting a Public ILI Hearing on Resolution No. 2090 at 10:00 a.m., October 8, 2004. Mr. Schalliol noted that Resolution No. 2090 expands the development area to include one property. Resolution No. 2091 adds that property to the acquisition list. It would be a voluntary acquisition. Upon a motion by Kahn, seconded by Mr. Hunt and unanimously carried the Commission accepted for filing Resolution No. 2090 amending the Airport Economic Development Area Development Plan, and setting a Public Hearing on Resolution No. 2090 at 10:00 a.m., October 8, 2004. (2) Filing of Resolution No. 2091 amending the Airport Economic Development Area Development Plan, setting a Public Hearing on Resolution No. 2091 at L 29 COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM RALPH D. LAUVER FOR THE SCOPE OF SERVICES AND FEE PROPOSED. COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 2090 AMENDING THE AIRPORT ECONOMIC DEVELOPMENT AREA DEVELOPMENT PLAN, AND SETTING A PUBLIC HEARING ON RESOLUTION NO. 2090 AT 10:00 A.M., OCTOBER 8, 2004. Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) F. Airport Economic Development Area (2) continued... 10:00 a.m., October 8, 2004. Upon a motion by Kahn, seconded by Mr. Hunt and unanimously carried the Commission accepted for filing Resolution No. 209 amending the Airport Economic Development Area Development Plan, and setting a Public Hearing on Resolution No. 2090 at 10:00 a.m., October 8, 2004. (3) Commission approval requested for Certificate of Completion for property located at 5800 Nimtz Parkway in the Airport Economic Development Area. (Storion) Mr. Schalliol noted that the property at 5800 Nimtz Parkway was sold in May 2003 to the Storion Group for the completion of one building on Lot 2C. The building is presently occupied by the Federal Aviation Administration. Staff requests approval of the Certificate of Completion. Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried, the Commission approved the Certificate of Completion for property located at 5800 Nimtz Parkway in the Airport Economic Development Area. (Storion) (4) Commission approval requested for Resolution No. 2101 Adopting a Revised Comprehensive Legal Description for the Airport Economic Development Area to (0-1, 30 COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 209 AMENDING THE AIRPORT ECONOMIC DEVELOPMENT AREA DEVELOPMENT PLAN, AND SETTING A PUBLIC HEARING ON RESOLUTION NO. 2090 AT 10:00 A.M., OCTOBER 8, 2004. COMMISSION APPROVED THE CERTIFICATE OF COMPLETION FOR PROPERTY LOCATED AT 5800 NIMTZ PARKWAY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (STORION) Redevelopment Commission Meeting Regular Meeting — September 17, 2004 6. NEW BUSINESS (CONT.) F. Airport Economic Development Area (4) continued... Include Expansion Areas 1 through 18, Inclusive. Item 6.E.(4) was tabled. G. South Bend Medical Services District H. West Washington- Chapin Development Area I. South Side Development Area J. Northeast Neighborhood Development Area 7. Progress Reports Ms. Greene noted that the Redevelopment staff and its legal counsel have never been so busy. There is a lot going on both behind the scenes as well as what has come before the Commission. 8. Next Commission Meeting The next meeting of the Redevelopment Commission will be its Rescheduled Meeting on Friday, October 8, 2004 at 10:00 a.m. 9. Adjournment There being no further business to come before the Redevelopment Commission, Mr. Kahn made a motion that the meeting be adjourned. Mr. Hunt seconded the motion and the meeting was adjourned at 10:45 a.m. ITEM 6.E.(4) WAS TABLED. PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT Donald E. Inks, Director (0 4 31 Philip J. Faccenda, Vice President