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HomeMy WebLinkAbout06-18-04 Redevelopment Commission MinutesA SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING June 18, 2004 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. 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. Owen Rock, Assistant Director Ms. Pam Morris, Recording Secretary Mr. Andy Laurent, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Mr. Bill Schalliol, Economic Development Specialist Ms. Jennifer Hughes, Economic Development Specialist Mr. Terry O'Brien, Economic Development Specialist Others Present: Ms. Pam Paluszewski, Legal Dept. Mr. David Hatch, Habitat for Humanity Mr. William Panzica, The Panzica Group 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of May 21, 2004. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the Minutes of the Regular Meeting of May 21, 2004. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF MAY 21, 2004 Redevelopment Commission Meeting ILRegular Meeting — June 18, 2004 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted June 18, 2004 for approval. FUND 305 SBCDA 2003 BOND Tri County News $ 70.00 SBD Reprographics 265.62 324 FUND - AIRPORT CFH Landscape Services 1,100.00 414 SAMPLE -EWING Baker General Maintenance 100.00 CFH Landscape Services 2,118.25 Danch, Harper & Associates, Inc. 1,595.00 420 SBCDA CB Richard Ellis 840.26 New Life Restoration Inc. 503.57 South Bend Water Works 125.39 City of South Bend 798.09 CFH Landscape Services 260.00 NIPSCO 4.65 Lowe's Home Improvement 25.23 SBC 86.66 Rose Exterminator Company 80.00 Ziolkowski Construction, Inc. 195,283.84 FUND 424 Mikolajewski & Associates, Inc. 931.56 CB Richard Ellis 150.00 428 FUND AIRPORT 2003 BOND DLZ 8,255.00 $ 212,593.12 L, Redevelopment Commission Meeting IL Regular Meeting — June 18, 2004 3. APPROVAL OF CLAIMS (CONT.) Mr. Hunt asked about the claim from Ziolkowski Construction for $195,283.84. Mr. Rock responded that it was for renovation of the retail space in the Palais for The Vine restaurant. Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried, the Commission approved the Claims submitted June 18, 2004, and ordered 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. 2059 amending the South Side Development Area Development Plan Mr. Schalliol explained that Resolution No. 2059 adds the property at 4201 S. Main Street to the SSDA Development Plan acquisition list. Mr. Rock asked that the following items be entered into the record: (1) a copy of Resolution No. 2059; (2) a copy of the Notice of Hearing; (3) affidavits from the South Bend Tribune and Tri- County News that the Notice of Hearing was published in those newspapers on June 4, 2004; (4) a statement from Bill Schalliol that he mailed the Notice of Hearing C COMMISSION APPROVED THE CLAIMS SUBMITTED JUNE 18, 2004, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS. THERE WAS NO OLD BUSINESS Redevelopment Commission Meeting Regular Meeting — June 18, 2004 ILI 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... to affected property owners and neighborhood associations; (5) there were no written remonstrances received by 10:00 a.m. Ms. Greene noted that because Resolution No. 2059 is an amendment to the development plan, in accordance with I.C. 36 -7 -the- , the Commission is not required to have evidence or make findings that were required for designating the area; however, in order to approve the amendment to the development plan, the Commission must find that the amendment is reasonable and appropriate in relation to the original resolution and plan and that the proposed resolution conforms to the comprehensive plan. Ms. Jones opened the Public Hearing for whoever wished to speak. There was no one who wished to speak regarding Resolution No. 2059. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (2) Commission approval requested for Resolution No. 2059. Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 2059 amending the South Side Development Area Development Plan c, PUBLIC HEARING ON RESOLUTION NO. 2059 COMMISSION APPROVED RESOLUTION NO. 2059 AMENDING THE SOUTH SIDE DEVELOPMENT AREA DEVELOPMENT PLAN Redevelopment Commission Meeting Regular Meeting — June 18, 2004 IL 6. NEW BUSINESS (CONT.) B. Tax Abatements (1) Commission approval requested for Resolution No. 2062 approving an application for real property tax deduction for property located at 1310 and 1314 W. Liston Street in the West Washington - Chapin Development Area. (South Bend Heritage Foundation) Mr. O'Brien gave the staff report on the project. South Bend Heritage Foundation currently owns the land, but will be donating the land to Habitat for Humanity of St. Joseph County. Habitat proposes to develop two (2) new single family homes on the lots. One of the homes will become the site of Habitat's 2004 "Women Build" project and the other home will be built by a consortium of area 40� churches. Each home will be designed to fit into the neighborhood and will have similar amenities. The one- or two -story homes will range in size from 1,000 to 1,200 sft. and will have three bedrooms, one bath and a one car garage. Due to limited construction funding, the homes will be built on crawlspaces. The estimated market value per home will be between $75,000 and $80,000. The total cost of the project is estimated at $157,000. A review of the tax abatements previously granted finds that the petitioner has been granted fifteen (15) previous tax abatements. The petitioner is in compliance with all reporting requirements for these tax abatements. The building commissioner has reviewed the petition and finds the properties to be properly zoned for the proposed use. c, Redevelopment Commission Meeting Regular Meeting — June 18, 2004 IL 6. NEW BUSINESS (CONT.) B. Tax Abatement (1) continued... A review of the South Bend Redevelopment designation areas finds that these lots are in the West Washington- Chapin Development 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 year residential tax.abatement. Mr. Hunt asked if the tax abatement ordinance requires basements and whether they would need a variance. Mr. O'Brien indicated that Habitat has received tax abatement for other homes without basements. Without abatement, taxes due on each home would be approximately $3,828 over the five years. With abatement there would be no taxes due during that time. Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 2062 approving an application for tax deduction for property located at 1310 and 1314 W. Liston Street in the West Washington- Chapin Development Area. (South Bend Heritage Foundation) C. Housing (1) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Loan Program 6 COMMISSION APPROVED RESOLUTION NO. 2062 APPROVING AN APPLICATION FOR TAX DEDUCTION FOR PROPERTY LOCATED AT 1310 AND 1314 W. LISTON STREET IN THE WEST WASHINGTON -CHAPIN DEVELOPMENT AREA. (SOUTH BEND HERITAGE FOUNDATION) c, Redevelopment Commission Meeting Regular Meeting — June 18, 2004 ILI 6. NEW BUSINESS (CONT.) C. Housing (1) continued... for property located at 834 N. Olive Street. (Lillian Cobb) Mr. Rock noted that the Loan is in the amount of $2,000. The grant is $7,500. Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried, the Commission approved the Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 834 N. Olive Street. (Lillian Cobb) (2) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 2415 Inglewood Ct. (Betty Ann Hazinski) Mr. Rock noted that the Loan is in the amount of $5,100. The Grant is $7,500. Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried, the Commission approved the Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 2415 Inglewood Ct. (Betty Ann Hazinski) D. South Bend Central Development Area (1) Commission approval requested for Resolution No. 2065 approving acquisition of real property to facilitate the Studebaker National Museum relocation project and C COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 834 N. OLIVE STREET. (LILLIAN COBB) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 834 N. OLIVE STREET. (LILLIAN COBB) Redevelopment Commission Meeting IL Regular Meeting — June 18, 2004 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (1) continued... approving the execution of a ground lease and other related documents associated with the Studebaker Museum relocation project (South Bend Central Development Area) Ms. Greene noted that Resolution No. 2065 accepts the transfer of property from South Bend Heritage Foundation which will serve as the site for the Studebaker Museum. This resolution also approves execution of a ground lease related to property on which a connector between the Center for History and the Studebaker Museum will be located. Because legal counsel for the parties are still working ILI through some language issues in the ground lease, the resolution provides that the ground lease to be executed must be in a form consistent with the form presented at this meeting with any changes as are deemed appropriate by legal counsel. Resolution No. 2065 also recognizes that a variety of closing documents will need to be signed and authorizes their execution. Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 2065 approving acquisition of real property to facilitate the Studebaker National Museum relocation project and approving the execution of a ground lease and other related documents associated with the Studebaker Museum relocation project (South Bend Central Development Area) 8 COMMISSION APPROVED RESOLUTION NO. 2065 APPROVING ACQUISITION OF REAL PROPERTY TO FACILITATE THE STUDEBAKER NATIONAL MUSEUM RELOCATION PROJECT AND APPROVING THE EXECUTION OF A GROUND LEASE AND OTHER RELATED DOCUMENTS ASSOCIATED WITH THE STUDEBAKER MUSEUM RELOCATION PROJECT (SOUTH BEND CENTRAL DEVELOPMENT AREA) c, Redevelopment Commission Meeting Regular Meeting — June 18, 2004 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (2) Staff report on acquisition of property in the South Bend Central Development Area. (Rink Property) Mr. Mathia noted that Resolution No. 2052 authorized an offer of $409,500 to be made for acquisition of the subject property. Mr. Thomas Brademas, Jr., owner of the property, countered with an offer of $465,000. Staff made a final offer of $437,500 which Mr. Brademas has accepted. The Redevelopment Commission is requested to approve the acquisition of the subject properties for the amount of $437,500. In approving that amount the Commission must make the affirmative finding that the sum authorized in excess of the average of the two appraisals is reasonable, the acquisition of the property is necessary to accomplish development in the area, and such acquisition is consistent with the development plan for the area. Staff recommends approval of the acquisition for the stated amount. The subject property is currently for sale and vacant. The Commission would not incur any relocation costs if the acquisition is completed at this time. The extra cost of $28,000 is reasonable given the savings in relocation costs and the imprecise nature of the process used to determine appraisal estimates. Acquisition of the property will further the Commission's redevelopment goals and objectives for the South Bend Central Development Area in general and more particularly for the East Bank Area. The site is a high profile location on the St. Joseph River that is key to successfully implementing the Commission's IL Redevelopment Commission Meeting ILRegular Meeting — June 18, 2004 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (2) continued... development strategy on the River's East Bank and East Race area. Ms. Greene noted that acquisition of property is governed by I.C. 36- 7- 14 -19. This section of the Code requires that the Commission's offering price must be based upon the average of two independent appraisals. However, I.C. 36- 7- 14 -19(b) authorizes the Commission to exceed that price if it specifically authorizes such deviation. Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried, the Commission approved the counter offer from Thomas Brademas, Jr. for acquisition of the Rink Riverside Building in the amount of $437,500. (3) Commission approval requested for proposal for Mechanical Systems Evaluation in the South Bend Central Development Area. (Hotel LaSalle heating system) Mr. Mathia noted that last winter the heating system for the Hotel La Salle failed. The system is old and repairs were made to it in haphazard fashion by a previous owner who s- old the Hotel to Downtown South Bend, Inc. Repairs need to be made to the system prior to the next heating season. However, at this time it is uncertain exactly what repairs should be made and what the cost would be. In order to make those decisions an evaluation of the heating system is necessary. Staff contacted 10 COMMISSION APPROVED THE COUNTER OFFER FROM THOMAS BRADEMAS, JR. FOR ACQUISITION OF THE RINK RIVERSIDE BUILDING IN THE AMOUNT OF $437,500 Redevelopment Commission Meeting Regular Meeting — June 18, 2004 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (3) continued... Stephen J. Eddy of Cornerstone Consulting, LLC and requested that his firm submit a proposal to complete the evaluation. In response Mr. Eddy briefly examined the Hotel along with building plans located by Staff and submitted the attached letter proposal. The letter proposal is in the amount of $4,500. Mr. Eddy's firm has extensive experience working on mechanical systems. Currently they are in charge of designing and overseeing the renovation of the mechanical systems in the Palais retail space for the Vine Restaurant. The problems found in the Palais are much the same as those found in the Hotel. There is an ILI old, existing system that has been given uneven maintenance service over its operating life. That system had to be evaluated and updated with new components added in as efficient manner as possible. Staff recommends accepting the letter proposal and authorizing funding up to $5,000 to cover the cost of the services plus any contingencies. Staff recommends approval Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for Mechanical Systems Evaluation on the Hotel LaSalle heating system and authorized staff to retain Cornerstone Consulting based on the scope of services and fee proposed. 11 COMMISSION APPROVED THE REQUEST FOR MECHANICAL SYSTEMS EVALUATION ON THE HOTEL LASALLE HEATING SYSTEM AND AUTHORIZED STAFF TO RETAIN CORNERSTONE CONSULTING BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. A L c, Redevelopment Commission Meeting Regular Meeting — June 18, 2004 6. NEW BUSINESS (CONT.) E. Sample -Ewing Development Area (1) Commission approval requested for proposal for property maintenance services in the Sample -Ewing Development Area. (Oliver Industrial Park) Mr. Laurent noted that staff solicited proposals and received quotes from three landscaping companies to mow the 27 acres of land the Commission owns in the Oliver Industrial Park, including the retention pond in the back. The quotes received were as follows: Fitzmaurice Landscaping $400 CFH Landscaping Services $575 Foegley Landscape, Inc. $950 Staff recommends accepting the proposal form Fitzmaurice Landscaping in the amount of $400 per occurrence. It will be mowed approximately every three weeks upon coordination with staff. Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission approved the request for property maintenance services in the Oliver Industrial Park and authorized staff to retain Fitzmaurice Landscaping based on the scope of services and fee proposed. (2) Commission approval requested for proposal for demolition services in the Sample -Ewing Development Area. (718 E. Ohio Street) Mr. Williams noted that staff requested two proposals for demolition of the structure on 718 E. Ohio St. Only one proposal was 12 COMMISSION APPROVED THE REQUEST FOR PROPERTY MAINTENANCE SERVICES IN THE OLIVER INDUSTRIAL PARK AND AUTHORIZED STAFF TO RETAIN FITZMAURICE LANDSCAPING BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED.. Redevelopment Commission Meeting Regular Meeting — June 18, 2004 6. NEW BUSINESS (CONT.) E. Sample -Ewing Development Area (2) continued... received. Warner & sons Excavating proposed to do the work for $4,950. Staff recommends accepting the proposal. Mr. Hunt asked how quickly the work would be done. Mr. Williams acknowledged that there was no time frame mentioned in their proposal, but expected it would be completed in 30 days. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for demolition services of 718 E. Ohio and authorized acceptance of the proposal from Warner & Sons for the scope of services and fee proposed. F. Airport Economic Development Area (1) Filing of Resolution No. 2064 amending the Airport Economic Development Area Development Plan and setting a Public Hearing for July 2, 2004 at 10:00 a.m. Ms. Hughes noted that Resolution No. 2064 will add 25 properties to Exhibit A, List of Properties to be Acquired. The properties are proposed for acquisition in relation to plans for the expansion of the Bosch Corporation facility, which is in turn consistent with the development area development plan. The properties are south of Bertrand Ave., south of Meade St., north of Washington St., and east of Kaley St. These would all be voluntary acquisitions. 13 COMMISSION APPROVED THE REQUEST FOR DEMOLITION SERVICES OF 718 E. OHIO AND AUTHORIZED ACCEPTANCE OF THE PROPOSAL FROM WARNER & SONS FOR THE SCOPE OF SERVICES AND FEE PROPOSED. Redevelopment Commission Meeting Regular Meeting — June 18, 2004 6. NEW BUSINESS (CONT.) F. Airport Economic Development Area (1) continued... Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried, the Commission accepted for filing Resolution No. 2064 and set a Public Hearing for July 2, 2004 at 10:00 a.m. (2) Commission approval requested for Resolution No. 2066 approving the transfer of real property related to the Fisery retention project and approving the execution of documents related to the project (Airport Economic Development Area) IL Mr. Rock explained that Resolution No. 2066 transfers some property to Moreau Court Investments so they can build some extra parking lots for their tenant, Fiserve. This transaction helps to retain Fiserve's 195 jobs with an average salary $35,000. The property was previously used by Trinity Health Systems so was not generating property taxes for the city. With Fiserve as the tenant it will be paying taxes of approximately $215,000 per year. Ms. Greene noted that the additional parking could not be accommodated on the existing property and as such, further development of the adjacent site was restricted. Transfer of the additional property for this purpose specified is consistent with the Airport Economic Development Area Development Plan. 14 COMMISSION ACCEPTED FOR FILING RESOLUTION No. 2064 AND SET A PUBLIC HEARING FOR JULY 2, 2004 AT 10:00 A.M. Redevelopment Commission Meeting Regular Meeting — June 18, 2004 IL 6. NEW BUSINESS (CONT.) F. Airport Economic Development Area (2) continued... Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 2066 approving the transfer of real property related to the Fisery retention project and approving the execution of documents related to the project (Airport Economic Development Area) (3) Commission approval requested for capital purchases in the Airport Economic Development Area. (Irrigation materials, Blackthorn Golf Course) Mr. Rock noted that purchase of this equipment was included in the 2004 budget for IL the golf course. It will be installed by golf course staff around the 18th hole. Two quotes were received for the equipment. Kenny Outdoor Solutions' price is $646.27; Rainscapes proposed a price of $772.64. Staff recommends accepting the quote from Kenny Outdoor Solutions. Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried, the Commission approved the purchase of irrigation materials for Blackthorn Golf Course and authorized purchase from Kenny Outdoor Solutions in the amount of $646.27. (4) Commission approval requested for capital purchase in the Airport Economic Development Area. (Irrigation timer, Blackthorn Golf Course) 15 MR. KAN AND UNANIMOUSLY CARRIED, THE COMMISSION APPROVED RESOLUTION No. 2066 APPROVING THE TRANSFER OF REAL PROPERTY RELATED TO THE FISERV RETENTION PROJECT AND APPROVING THE EXECUTION OF DOCUMENTS RELATED TO THE COMMISSION APPROVED THE PURCHASE OF IRRIGATION MATERIALS FOR BLACKTHORN GOLF COURSE FROM KENNY OUTDOOR SOLUTIONS IN THE AMOUNT OF $646.27. Redevelopment Commission Meeting Regular Meeting — June 18, 2004 6. NEW BUSINESS (CONT.) F. Airport Economic Development Area (4) continued... Mr. Rock noted that purchase of this equipment was included in the 2004 budget for the golf course. This timer will replace two existing timers and will give the irrigation system more capacity. Two quotes were received for the equipment. Kenny Outdoor Solutions' price is $3,543.75; Rainscapes proposed a price of $3,685.50. Staff recommends accepting the quote from Kenny Outdoor Solutions. Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission approved the purchase of an irrigation timer for Blackthorn Golf Course from Kenny Outdoor Solutions in the amount of $3,543.75. G. South Bend Medical Services District H. West Washington- Chapin Development Area (1) Commission approval requested for proposal for professional services in the West Washington- Chapin Development Area. (Appraisal services, 416 W. LaSalle) Mr. Williams noted that staff requested bids from two appraisers and received the following proposals. Rick Pitts & Associates proposed to complete the appraisal on 416 W. LaSalle at a cost of $3,250; Jerry Michaels Appraisals proposed to do the work for $3,500. Two appraisals are required for acquisition. Staff recommends accepting both proposals. 16 COMMISSION APPROVED THE PURCHASE OF AN IRRIGATION TIMER FOR BLACKTHORN GOLF COURSE FROM KENNY OUTDOOR SOLUTIONS IN THE AMOUNT OF $3,543.75 Redevelopment Commission Meeting Regular Meeting — June 18, 2004 6. NEW BUSINESS (CONT.) COMMISSION ACCEPTED THE PROPOSALS FROM RICK PITTS & ASSOCIATES AND JERRY H. West Washington - Chapin Development Area MICHAELS APPRAISALS FOR THE SCOPE OF SERVICES AND FEE PROPOSED (1) continued... Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried, the Commission accepted the proposals from Rick Pitts & Associates and Jerry Michaels Appraisals for the scope of services and fee proposed. (2) Filing of Resolution No. 2063 amending the Development Plan for the West Washington- Chapin Development Area and setting a Public Hearing for July 2, 2004 at 10:00 a.m. Item 61(2) Was tabled. ITEM 6.I.(2) WAS TABLED. I. South Side Development Area J. Northeast Neighborhood Development Area K. Other 7. Progress Reports Mr. Rock noted the lease of the former Trinity Health PROGRESS REPORTS Systems building to Fiserve, meeting its need and keeping those jobs in the community. 8. Next Commission Meeting The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Friday, July 2, 2004 at 10:00 a.m. C 17 Redevelopment Commission Meeting Regular Meeting — June 18, 2004 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. Donald E. Inks, Director In ADJOURNMENT Philip J. Faccenda, Vice President