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HomeMy WebLinkAbout07-02-04 Redevelopment Commission MinutesG r� u SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING July 2, 2004 10:00 a.m. Presiding: Marcia I. Jones, President 1. ROLL CALL 227 West Jefferson Boulevard South Bend, Indiana Members Present: Ms. Marcia I. Jones, President Mr. Philip J. Faccenda, Vice - President Mr. Matt Kahn, Secretary Mr. Robert W. Hunt Member Absent: Mr. Hardie Blake, Jr. Legal Counsel: Ms. Cheryl Greene Redevelopment Staff: Mr. Donald Inks, Director Mrs. Jenny Hullinger, Recording Secretary Mr. Owen Rock, Economic Development Specialist Mr. Bill Schalliol, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Ms. Jennifer Hughes, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Mr. Terry O'Brien, Economic Development Specialist Others Present: Ms. Pam Paluszewski, Legal Department Mr. Jeff McGowan, Krugel Lawton Mr. Willie Allen Mr. James McCune, McCune Masonry Ms. Inez Gass Ms. Sharen Allen Mr. Gunther W. Jordan, Exacto, Inc. Mr. Paul Hartz Mr. Billie Richmond 2. APPROVAL OF MINUTES There were no Minutes for approval. 1 No Minutes for approval. South Bend Redevelopment Commission Regular Meeting —July 2, 2004 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted July 2, 2004 for approval. FUND 305 SBCDA 2003 BOND Kone, Inc. $ 19,782.90 Walker Parking Consultants 37,967.18 South Bend Tribune Classified 92.25 Abonmarche Consultants of Indiana LLC 13,900.00 324 FUND - AIRPORT Blackthorn Golf Club 4,220.00 Peerless Midwest Inc. 8,295.00 City of South Bend 268.80 414 SAMPLE -EWING GENERAL Crumlish and Crumlish Architects, Inc. 1,500.00 CA Studios 98.00 Ken Herceg & Associates, Inc. 7,000.00 420 FUND TIF DISTRICT -SBCDA GENERAL City of South Bend 2,135.85 Lehman & Lehman 6,398.67 Business Districts, Inc. 3,959.50 L.L. Geans Construction 14,802.12 Rose Exterminator Company 80.00 South Bend Water Works 831.48 Wightman Petrie, Inc. 740.00 CB Richard Ellis 183.38 AEP 254.79 422 FUND WEST WASHINGTON Appraisal Group Inc. 300.00 424 FUND TIF SBCDA - BUILDING OPERATIONS Mikolajewski & Associates, Inc. 931.56 Jerome E. Michaels, MAI 2,000.00 428 FUND AIRPORT 2003 BOND Meridian Title 6,815.00 The Troyer Group 7,871.53 SBD Reprographics 289.65 619 BLACKTHORN Meadowbrook Golf Group, Inc. 7,500.00 $ 76,475.33 C. 2 A South Bend Redevelopment Commission Regular Meeting —July 2, 2004 3. APPROVAL OF CLAIMS (CONT.) Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted July 2, 2004, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Public Hearing (1) Public Hearing on Resolution No. 2064 amending the Airport Economic Development Area Development Plan. Ms. Hughes explained that Resolution No. 2064 will amend the Airport Economic Development Area Development Plan to add 25 properties to its Exhibit "A ", List of Properties to be Acquired. The properties will be used for the expansion of the Bosch Corp. facility. There is no right of eminent domain in an economic development area. The staff proposes to make offers on the property and attempt to reach a negotiated agreement with the owners for the purchase of their property. The goals for the development area include encouragement of business 3 COMMISSION APPROVED THECLAIMS SUBMITTED JULY 2, 2004, AND ORDERED THE CHECKS TO BE RELEASED. THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS. c, South Bend Redevelopment Commission Regular Meeting —July 2, 2004 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... development through targeted economic development activities. This amendment to the Plan is in agreement with both these goals for the plan and for the residential area of Kennedy Park neighborhood. We are working closely with our Community Development division to make sure that the neighborhood is aware of the plans for the neighborhood in relation to the reroute of Bendix Drive. The Troyer Group has been contractually retained to handle acquisition on behalf of the City. Necessary relocation will be handled by Redevelopment staff. Ms. Hughes asked that a letter dated December 3, 2003 from Mayor Luecke to Bosch Braking Corporation be entered into the record. Mr. Hans Weckerle, President Bosch Braking Corporation Dear Mr. Weckerle: This letter will serve to confirm the intention of the City of South Bend as it pertains to the acquisition of property for the Bosch project. The City has agreed to work on acquiring certain properties as part of an overall L South Bend Redevelopment Commission Regular Meeting —July 2, 2004 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... accumulation of land south of Kennedy Park, north of Norfolk and Southern Central Railroad track, east of the existing Bosch facility and west of Meade St. as part of the development of the campus for the Bosch Braking Corporation. The City of South Bend is committed to the Bosch Corporation as a very important employer and a significant contributor to the city's present economic well -being and future growth. We will work with the neighbors in the neighborhood described in the paragraph above to the full extent the law allows. Sincerely, Stephen J. Luecke Mayor Ms. Greene asked Ms. Hughes to state the reasons the amendment to the plan is necessary. Ms. Hughes noted that much of the area described above could be considered blighted. There are vacant parcels of land, boarded up houses, code violations on a few properties. That being said, there are also some long -time property owners who have seen their neighborhood go downhill and who have concerns about where they currently live. Some might wish to stay, some might wish to leave the neighborhood. We hope to provide relocation services that satisfy everyone. C South Bend Redevelopment Commission Regular Meeting —July 2, 2004 L6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Ms. Greene noted that amending the development plan for an economic development area is governed by I.C. 36- 7 -14 -17.5. The Commission is conducting a public hearing consistent with that section of the Indiana Code. There is a time for written remonstrances to be filed, specified in the notice that was published in the Tri- County News and South Bend Tribune on June 18, 2004. Section 17.5(c) stipulates that when amending a plan for a development area, the Commission is not required to take evidence or make findings that were required when it originally established the economic development area. However, before approving any amendment to the development plan the Commission must find that the amendment is reasonable and appropriate when considered in relation to the original resolution or plan and the purposes of the redevelopment statutes and that the proposed amendment will conform to the comprehensive plan for the city. The findings that the Commission is asked to make are consistent with the amendment to the plan as stated in Resolution No. 2064 that is before you. If the Commission, upon hearing staff's report and any additional evidence or statements from members of the public for or against the amendment, approves the resolution, it has then complied with L6 South Bend Redevelopment Commission Regular Meeting —July 2, 2004 IL 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... the statutory requirement for making those findings. Mr. Rock asked that the following items related to the Public Hearing be entered into the record: (1) a copy of the Notice of Hearing; (2) a copy of Resolution No. 2064; (3) copies of the affidavits from the South Bend Tribune and Tri- County News that the Notice of Hearing was published in those newspapers on June 18, 2004; (4) a statement from staff that the affected taxing units were notified; (5) a statement from staff that affected property owners and registered neighborhood associations were notified; and (6) there were no written remonstrances received by 10:00 a.m. this morning. Ms. Greene noted that the statute contemplates that any remonstrance would be a written remonstrance filed by the time period set in the notice. Ms. Jones opened the Public Hearing on Resolution No. 2064 and asked if there was anyone who wished to be heard. There was no one who wished to speak. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (2) Commission approval requested for Resolution No. 2064. ce, 7 South Bend Redevelopment Commission Regular Meeting —July 2, 2004 ILI 6. NEW BUSINESS (CONT.) A. Public Hearing (2) continued... Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2064. B. Tax Abatements (1) Commission approval requested for Resolution No. 2067 approving an application for personal property tax deduction for property located at 1137 S. Lafayette Blvd. in the Sample - Ewing Development Area. (Exacto, Inc.) Mr. O'Brien gave the staff report on the project. The petitioner is a precision machine shop which manufactures machined parts and components for diesel engine fuel injector systems, turbochargers and air compressors for trucks. The new equipment creates additional machine capacity that will allow the petitioner to meet increased customer demands. It is estimated that the total cost of the new equipment will be $600,000. Per the petition, this project will create 8 new, permanent jobs within the first year, representing a new annual payroll of $183,040 and will help maintain 78 existing permanent full -time jobs representing an annual payroll of $1,898,000. c, COMMISSION APPROVEDRESOLUTIONNo. 2064 LIM 14 South Bend Redevelopment Commission Regular Meeting —July 2, 2004 6. NEW BUSINESS (CONT.) B. Tax Abatements (1) continued... A review of the tax abatements previously granted, finds that the petitioner has been associated with or granted two previous personal property tax abatements, in 1993 and 2001. 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. A review of the South Bend Redevelopment designation areas finds that the property Y is located in the Sample Ewing 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 five (5) year personal property tax abatement. 9 Estimated taxes over five (5) years Without abatement $49,978 With 5 year abatement $17,106 Estimated cost of 5 year abatement $32,872 9 C� South Bend Redevelopment Commission Regular Meeting —July 2, 2004 6. NEW BUSINESS (CONT.) B. Tax Abatements (1) continued... Mr. Jordan noted that Exacto does not replace equipment at a cost of $600,000. They add additional equipment because they need additional machine capacity. Exacto's sales during the first half of 2004 are already 35.7% higher than 2003. Two days ago they signed an additional new contract with one of their customers for two years additional business at $1,254,000 per year. Mr. Jordan also expressed his appreciation for the assistance the City of South Bend has provided for its new, IL larger building three years ago. They are making good use of it. They are also very proud of the new employees they have hired this year. At the beginning of 2004 they were at 60 employees, have hired 20 additional since, and with this new equipment will hire 8 more employees. Of the 80 employees, 9 are UEZ residents and 45 are minorities. Upon a motion by Mr. Hunt, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 2067 approving an application for personal property tax deduction for property located at 1137 S. Lafayette Blvd. in the Sample -Ewing Development Area. ( Exacto, Inc.) 10 COMMISSION APPROVED RESOLUTION NO. 2067 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1 137 S. LAFAYETTE BLVD. IN THE SAMPLE -EwING DEVELOPMENT AREA. (EXACTO, INC.) South Bend Redevelopment Commission Regular Meeting —July 2, 2004 6. NEW BUSINESS (CONT.) B. Tax Abatements (2) Commission approval requested for Resolution No. 2068 approving an application for personal property tax deduction for property located at 2820 Viridian Dr. in the Airport Economic Development Area. (Mack Tool & Engineering, Inc.) Mr. O'Brien gave the staff report on the project. The petitioner is a precision machine shop which manufactures prototype and experimental parts primarily for use in the medical and aerospace industries. The petitioner would like to increase its production capacity with the acquisition of new equipment. It is estimated that the total cost of the new equipment will be $1,000,000. This ro'ect will create p J four new, permanent jobs within the first year, representing a new annual payroll of $180,000 and will help maintain 42 existing permanent full -time jobs representing an annual payroll of $2,604,575. A review of the tax abatements previously granted, finds that the petitioner has been associated with or granted four previous tax abatements: one real and one personal abatement in 1990, and personal abatements in 1992 and 1995. The petitioner is in compliance with the reporting requirements for each of the previous abatements. 11 South Bend Redevelopment Commission Regular Meeting —July 2, 2004 ILI 6. NEW BUSINESS (CONT.) B. Tax Abatements (2) continued... The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. A review of the South Bend Redevelopment designation areas finds that the property is located in the Airport Economic 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 five (5) year personal property tax abatement. Paul Hartz noted that Mack Tool has spent over $1,500,000 in the last 18 months on new equipment. That new equipment did not receive tax abatement because the company did not realize it 12 Estimated taxes over five (5) years Without abatement $81,343 With 5 year abatement $27,841 Estimated cost of 5 year abatement $53,502 Paul Hartz noted that Mack Tool has spent over $1,500,000 in the last 18 months on new equipment. That new equipment did not receive tax abatement because the company did not realize it 12 A MOWN 14 South Bend Redevelopment Commission Regular Meeting —July 2, 2004 6. NEW BUSINESS (CONT.) B. Tax Abatements (2) continued... was available. Although the new equipment will be a significant outlay for them at approximately $15,000 per month, the salaries for the four new employees will be even more, totaling $20,000 per month. Productivity should increase three times on the new equipment. Mr. Hunt asked what the expected productive life of the equipment is. Mr. Mr. Hartz said that it should be productive for at least twelve years. Mr. Hunt noted that the tax abatement is for five years, so there will be full taxes on the equipment for approximately seven years after that. Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2068 approving an application for personal property tax deduction for property located at 2820 Viridian Dr. in the Airport Economic Development Area. (Mack Tool & Engineering, Inc.) (3) Commission approval requested for Resolution No. 2069 approving an application for personal property tax deduction for property located at 702 and 722 South Carroll Street in the South Bend Central Development Area. (Curtis Products, Inc.) 13 COMMISSION APPROVED RESOLUTION NO. 2068 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2820 VIRIDIAN DR. IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (MACK TOOL & ENGINEERING, INC.) South Bend Redevelopment Commission Regular Meeting —July 2, 2004 6. NEW BUSINESS (CONT.) B. Tax Abatements (3) continued... Mr. O'Brien gave the staff report on the project. The petitioner provides fabricated tube assemblies for Original Equipment Manufacturers engaged primarily in agricultural and automotive industries throughout the United States. The new equipment will allow the company to meet new production requirements necessary to fill recent contracts with John Deere and Meyer Stamping. It is estimated that the total cost of the new equipment will be $350,000. Per the petition, this project will create 5 new, permanent jobs within the first year, representing a new annual payroll of $160,000 and will help maintain 99 existing permanent full -time and 30 part time jobs representing an annual payroll of $3,662,920. A review of the tax abatements previously granted, finds that the petitioner received a 10 -year real property abatement in 1992 and two 5- year abatements in 1996 and 2000. 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. A review of the South Bend Redevelopment designation areas finds that the property is located in the South IL 14 South Bend Redevelopment Commission Regular Meeting —July 2, 2004 6. NEW BUSINESS (CONT.) B. Tax Abatements (3) continued... Bend Central 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 five (5) year personal property tax abatement. Mr. Jeff McGowan, CPA for Krugel Lawton, noted that Curtis Products started business in 1959. These two machines will help them with a new project for John Deere and to maintain a project for Meyers Stamping. The company lost approximately 35% of its business in the late 1990s, but has rebounded in the last few years. During the abatement period approximately $17,000 will be abated. However, during that same time they will pay about $11,500 on the new equipment. The life of the new equipment will extend well beyond the period of 15 Estimated taxes over five (5) years Without abatement $29,153 With 5 year abatement $ 9,978 Estimated cost of 5 year abatement $19,175 Mr. Jeff McGowan, CPA for Krugel Lawton, noted that Curtis Products started business in 1959. These two machines will help them with a new project for John Deere and to maintain a project for Meyers Stamping. The company lost approximately 35% of its business in the late 1990s, but has rebounded in the last few years. During the abatement period approximately $17,000 will be abated. However, during that same time they will pay about $11,500 on the new equipment. The life of the new equipment will extend well beyond the period of 15 South Bend Redevelopment Commission Regular Meeting —July 2, 2004 IL 6. NEW BUSINESS (CONT.) B. Tax Abatements (3) continued... abatement. Curtis Products maintains approximately 33% minority employment. Upon a motion by Mr. Hunt, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 2069 approving an application for personal property tax deduction for property located at 702 and 722 South Carroll Street in the South Bend Central Development Area. (Curtis Products, Inc.) C. Housing (1). Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 822 N. Jacob Street. (Willie Ruth Snowden) Mr. Rock noted that the loan is in the amount of $5,500 and the grant is $7,500. Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved the Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 822 N. Jacob Street. (Willie Ruth Snowden) ce 16 COMMISSION APPROVEDRESOLUTION No. 2069 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 702 AND 722 SOUTH CARROLL STREET IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (CURTIS PRODUCTS, INC.) COMMISSION APPROVED THELOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 822 N. JACOB STREET. (WILLIE RUTH SNOWDEN) South Bend Redevelopment Commission Regular Meeting —July 2, 2004 IL 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area There was no business in the South Bend Central Development Area. E. Sample -Ewing Development Area THERE WAS NO BUSINESS IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (1) Staff report on disposition of property in the Sample -Ewing Development Area. (Parcel 9A, Studebaker Corridor Disposition Area) E. Sample -Ewing Development Area Mr. Schalliol noted that James and Sandy McCune have submitted a proposal for Disposition Parcel 9A in the Studebaker Corridor. The developer has offered $100 for the .91 acre parcel at the northeast corner of Garst St. and Lafayette Blvd. The Commission is acquiring the developer's current property at 416 W. LaSalle where they operate McCune Masonry. The McCunes will construct a 10,400 sft new building on the site, 5,820 sft of which will house their business and the remaining 4,620 sft will be offered for lease until it is needed for future expansion of McCune Masonry. The building will have brick facade on the west face and steel siding on the other exposures. Mr. Schalliol noted that the schedule for development depends on the timing of the Commission's acquisition of McCune's existing property, possibly in 2004. 17 South Bend Redevelopment Commission Regular Meeting —July 2, 2004 IL 6. NEW BUSINESS (CONT.) E. Sample -Ewing Development Area (1) continued... The developer has submitted $100 for payment of the property. Staff recommends accepting the proposal from James and Sandy McCune and recommends requiring the developer to post a bond based on a percentage of the project cost. Mr. McCune noted that he had purchased a building at 416 W. LaSalle. South Bend Heritage Foundation did not want that type of business in that part of the West Washington- Chapin Development Area and offered to buy the property. He is willing to move the operation to this new location. Ms. Greene noted that disposition of property is governed by I.C. 36- 7- 14 -22. This property has previously been up for bid, so the Commission is allowed to proceed differently than in the normal disposition process. This is property that has a limitation on the proceeds the Commission may receive for the property. In determining whether or not to sell the property the Commission may make an award to the highest and best bidder, if there were competing bids. There are none, so in awarding this the Commission may consider the size and character of the improvements, the bidder's plans and ability to improve the property with reasonable promptness, whether the property will be sold or rented and the proposed sale price, plus any other 18 South Bend Redevelopment Commission Regular Meeting —July 2, 2004 6. NEW BUSINESS (CONT.) E. Sample -Ewing Development Area (1) continued... factors it believes will further the execution of redevelopment of the redevelopment plan and further the best interests of the community. Upon a motion by Mr. Faccenda, seconded by Mr. Hunt and unanimously carried, the Commission approved the sale of Parcel 9A, Studebaker Corridor Disposition Area, Sample -Ewing Development Area to James and Sandy McCune for $100 with the additional requirement they post a percentage of the project cost as a performance bond ILF. Airport Economic Development Area (1) Staff report on acquisition of property in the Airport Economic Development Area. (Lot 2, Ameriplex Minor Subdivision) Mr. Rock noted that on September 5, 2002 the Commission approved Resolution No. 1998 setting the offering price for Lot 2 in the Ameriplex Minor Subdivision at $109,500. The owner countered with an offer of $124,400 plus closing costs, taxes, and title. The staff countered with a $110,000 offer. The owner accepted the counter offer with the City paying closing costs, brokerage fees, taxes and title estimated at $8,000 to $10,000. The staff recommends accepting the offer. 19 COMMISSION APPROVED THE SALE OFPARCEL 9A, STUDEBAKER CORRIDOR DISPOSITION AREA, SAMPLE -EWING DEVELOPMENTAREA TO JAMES AND SANDY MCCUNE FOR $100 WITH THE ADDITIONAL REQUIREMENT THEY POST A PERCENTAGE OF THE PROJECT COST AS A PERFORMANCE BOND South Bend Redevelopment Commission Regular Meeting —July 2, 2004 6. NEW BUSINESS (CONT.) F. Airport Economic Development Area (1) continued... Mr. Rock noted that the property is located just off Olive Road. The Commission also owns property to the west of it. The two properties together should give the Commission a nice four -acre developable site. It will also help with the continued expansion of Olive Road. Mr. Hunt asked if staff was confident of their estimate of the other expenses. Mr. Rock and Ms. Greene indicated that they were. Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved the counter offer in the amount of $110,000 plus expenses for Lot 2, Ameriplex Minor Subdivision in the Airport Economic Development Area G. South Bend Medical Services District There was no business in the South Bend Medical Services District. H. West Washington - Chapin Development Area (1) Filing of Resolution No. 2063 amending the Development Plan for the West Washington- Chapin Development Area and setting a Public Hearing for July 16, 2004 at 10:00 a.m. 20 COMMISSION APPROVED THE COUNTER OFFER IN THE AMOUNT OF $110,000 PLUS EXPENSES FOR LOT 2, AMERIPLEXMINOR SUBDIVISION IN THE AIRPORT ECONOMIC DEVELOPMENT AREA THERE WAS NO BUSINESS IN THESOUTH BEND MEDICAL SERVICES DISTRICT South Bend Redevelopment Commission Regular Meeting —July 2, 2004 IL 6. NEW BUSINESS (CONT.) H. West Washington- Chapin Development Area (1) continued... Mr. Rock noted that Resolution No. 2063 adds five properties to the acquisition list of the West Washington- Chapin Devleopment Area Development Plan. This includes the property of Mr. McCune which was mentioned earlier. Ms. Jones asked if all three properties owned by Mr. McCune were part of the planned purchase mentioned previously. Mr. Rock responded that only one was part of that plan. The other two are being added to the acquisition list in case we want them in the future. Aopl Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission accepted the filing of Resolution No. 2063 and set a public hearing for 10:00 a.m. July 16, 2004. I. South Side Development Area (1) Commission approval requested for Resolution No. 2070 accepting the transfer of Real Property from the City of South Bend, Indiana. Mr. Schalliol explained that Resolution No. 2070 accepts property that was sold to the City of South Bend from the State of Indiana Department of Transportation. The property was sold for $16,600. It was purchased by the City through its Board of Public Works. The Board of Public Works, through this resolution, is transferring the property to the Commission which will begin the process of disposition on it at its 21 COMMISSION ACCEPTED THE FILING OF RESOLUTION NO. 2063 AND SET A PUBLIC HEARING FOR 10:00 A.M. JULY 16, 2004. 14 South Bend Redevelopment Commission Regular Meeting —July 2, 2004 6. NEW BUSINESS (CONT.) I. South Side Development Area (1) continued... next meeting. It is a small lot on the Erskine Village project site. It will be used as part of that larger redevelopment project. Upon a motion by Mr. Hunt, seconded by COMMISSION APPROVEDRESOLUTION No. 2070 Mr. Blake and unanimously carried, the ACCEPTING THE TRANSFER OF REAL PROPERTY Commission approved Resolution No. 2070 FROM THE CITY OF SOUTH BEND, INDIANA accepting the transfer of Real Property from the City of South Bend, Indiana. (2) Commission approval requested for Agreement By and Between The South Bend Redevelopment Commission and Business Districts, Inc. (Erskine Hills Shopping District) Item 6.I.(2) was removed from the agenda. J. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. K. Other (1) Commission approval requested for proposal for demolition services for property located at 112 S. St. Louis Blvd. 22 ITEM 6.I.(2) WAS REMOVED FROM THE AGENDA THERE WAS NO BUSINESS IN THENORTHEAST NEIGHBORHOOD DEVELOPMENTAREA South Bend Redevelopment Commission Regular Meeting —July 2, 2004 IL 6. NEW BUSINESS (CONT.) K. Other (1) continued... Mr. Williams noted that staff requested bids from two contractors for demolition of this property. Two bids were received: one from Ritchard Brothers for $8,333 and the second from Warner and Sons for $5,820. The staff recommends accepting the bid from Ritchard Brothers. Mr. Schalliol noted that the property is not presently located within a development area. It is about 150 feet east of the SBCDA. Staff is in the process of finalizing the documentation to move the boundaries to include the property into the development iC area. However, the property is vacant and is a blighting influence on the neighborhood and is one of the properties listed in the development agreement with Environmental Health Labs that the City is required to purchase and demolish. Statutorily, it is acceptable to take this action. Ms. Greene confirmed that the Commission is authorized to use TIF dollars to pay expenses incurred by the Commission for local public improvements. Local public improvements are defined in the statute with respect to improvements within a TIF allocation area or "serving that allocation area." The statute seems to indicate that the Commission must have an ownership interest in the property before proceeding. This is inconsistent with I.C. 36- 7 -14 -21 which allows the Commission to proceed with clearing and replanning of the property 23 South Bend Redevelopment Commission Regular Meeting —July 2, 2004 6. NEW BUSINESS (CONT.) K. Other (1) continued... before acquisition of that property. However, Counsel advised that the Commission could proceed to demolish the property prior to amending the plan to include the property in the TIF area as it is "serving the allocation area." Counsel further advised staff that they proceed promptly to include the property within the allocation area. Since the property is a blighting influence, it is clearly for the public health, safety and welfare to proceed. Upon a motion by Mr. Hunt, seconded by Mr. Faccenda and unanimously carried, the Commission approved the request for professional services at 112 S. St. Louis Blvd. and authorized staff to retain Ritchard Brothers for the demolition based on the scope of services and fee proposed. 7. PROGRESS REPORTS Mr. Rock noted that Woodwind and Brasswind has broken ground on its new facility. He also noted that the three tax abatements which were approved for new machinery are evidence that the economy here is expanding. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for July 16, 2004 at 10:00 a.m. L, 24 PROGRESS REPORTS NEXT COMMISSION MEETING South Bend Redevelopment Commission Regular Meeting —July 2, 2004 IL 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 10:25 a.m. I� Philip J. Faccenda, Vice President LM 25 ADJOURNMENT Donald E. Inks, Director