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Home My WebLink About05-21-04 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING May 21, 2004 10:00 a.m. 227 West Jefferson Boulevard Presiding: Philip J. Faccenda, Vice President South Bend, Indiana 1. ROLL CALL Members Present: Mr. Philip J. Faccenda, Vice President Mr. Matt Kahn, Secretary Mr. Robert W. Hunt Members Absent: Ms. Marcia Jones, President Mr. Hardie Blake, Jr. Legal Counsel: Ms. Cheryl Greene, Esq. Redevelopment Staff: Mr. Donald Inks, Redevelopment Director Ms. Pamela Morris, Recording Secretary Mr. Robert Mathia, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Ms. Jennifer Hughes, Economic Development Planner Mr. Terry O'Brien, Economic Development Specialist Others Present: Mr. Don McCarty Ms. Jeanette McCarty Mr. Robert A. Henry, The Robert Henry Corporation Ms. Pam Paluszewski, Legal Department 2. APPROVAL OF MINUTES There were no minutes available for approval. THERE WERE NO MINUTES AVAILABLE FOR APPROVAL. 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted May 21, 2004 for approval. FUND 305 SBCDA 2003 BOND Sabre Demolition Corporation Kaser - Spraker Construction, Inc. C, 1 17,071.00 716.00 South Bend Redevelopment Commission Regular Meeting - -May 21, 2004 3. APPROVAL OF CLAIMS (CONT.) 324 FUND - AIRPORT CFH Landscape Services City of South Bend 414 SAMPLE -EWING Baker General Maintenance CA Studios CFH Landscape Services Danch, Harper & Associates, Inc. 420 SBCDA CB Richard Ellis SBD Reprographics Business Districts, Inc. City of South Bend CFH Landscape Services AEP Apt., FUND 424 Mikolajewski & Associates, Inc. CB Richard Ellis 428 FUND AIRPORT 2003 BOND DLZ Earth Exploration, Inc. Meridian Title Corporation Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission approved the Claims submitted May 21, 2004, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. C, 2 560.00 46.96 200.00 1 ,462.75 1,261.50 2,207.50 339.63 94.98 810.00 620.23 100.00 1,496.53 931.56 275.00 14,503.20 3,589.18 3,305.00 $ 49,591.02 COMMISSION APPROVED THE CLAIMS SUBMITTED MAY 21, 2004, AND ORDERED THE CHECKS TO BE RELEASED. THERE WERE NO COMMUNICATIONS. South Bend Redevelopment Commission Regular Meeting - -May 21, 2004 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Public Hearings (1) Public Hearing on Resolution No. 2054 amending the Northeast Neighborhood Development Area Development Plan. Mr. Inks reported that the public hearing file was complete and requested the following items be entered into the record: (1) Affidavits from the Tri County News and South Bend Tribune that the Notice of Public Hearing was published in those newspapers on May 7, 2004; (2) A copy of the Notice of Hearing; (3) A copy of Resolution No. 2054; (4) A statement from Jennifer Hughes that affected property owners, registered neighborhood associations and taxing units were notified; and (5) As of 10:00 a.m. this morning, no written remonstrances were received. Ms. Hughes reported that the Northeast Neighborhood Development Area Development Plan will be amended by Resolution No. 2054 which adds two properties to the acquisition list. Both proposed acquisitions are related to plans for improvements to Fredrickson Park. The proposed acquisitions are as follows: Tax Key Number 18 -5102- 358901 1340 South Bend Avenue Macri Development, Inc., owner Tax Key Number 18 -5102 -3598 1405 E. Howard Street Donald and Jeanette McCarty, owners THERE WAS NO OLD BUSINESS. South Bend Redevelopment Commission Regular Meeting - -May 21, 2004 6. NEW BUSINESS A. Public Hearings (1) continued... Ms. Greene noted that Resolution No. 2054 is an amendment to a Development Plan governed by Indiana Code 36 -7 -14 -17.5 and before approving the proposed amendment, the Commission must make the following findings: (1) the amendment is reasonable and appropriate when considered in relation to the original resolution or development plan and purposes of the Redevelopment Act and; (2) the resolution or plan, as amended, conforms to the comprehensive plan for the City of South Bend. Mr. Hunt asked if Resolution No. 2054 had the full support of the Northeast Neighborhood Association. IL Ms. Hughes replied that it did. Mr. Faccenda opened the Public Hearing on Resolution No. 2054 and asked if there was anyone from the public who wished to speak. There being no one from the public who wished to speak regarding Resolution No. 2054, Mr. Faccenda closed the Public Hearing for whatever action the Commission wished to take. (2) Commission approval requested for Resolution No. 2054. Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission approved Resolution No. 2054 amending the Northeast Neighborhood Development Area Development Plan. (Northeast Neighborhood Development Area) t PUBLIC HEARING ON RESOLUTION No. 2054 AMENDING THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA DEVELOPMENT PLAN. COMMISSION APPROVED RESOLUTION No. 2054 AMENDING THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA DEVELOPMENT PLAN. (NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA) South Bend Redevelopment Commission Regular Meeting - -May 21, 2004 6. NEW BUSINESS (CONT.) B. Tax Abatements (1) Commission approval requested for Resolution No. 2056 approving an application for real property tax deduction for property located at 5550 W. Cleveland Road in the Airport Economic Development Area. (USF Holland, Inc.) Mr. O'Brien reported that USF Holland is a less- than - truckload carrier providing logistics and just -in -time trucking operations supporting its customers throughout the United States and beyond. The petitioner proposed to construct a new 100 door terminal facility, which will be approximately 63,000 sq. ft., between Cleveland Road and the Indiana Toll Road. The project is estimated to cost between IL $6.2 and $6.5 million and reflects the need for expansion of the existing South Bend operation to accommodate anticipated growth. It is estimated that this project will create fifteen (15) new permanent jobs within the first year, representing a new annual payroll of $825,000. It is also estimated that this project will retain 258 full -time jobs representing an annual payroll of $15,800,000. A review of the tax abatements previously granted finds that the petitioner has been granted two previous tax 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 Airport Economic Development Area, which is a Tax Increment Allocation Area; [A G South Bend Redevelopment Commission Regular Meeting- -May 21, 2004 6. NEW BUSINESS B. Tax Abatements (1) continued... therefore, the petition for real property tax 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 seven (7) year real property tax abatement. Based on a total estimated project cost of $6,350,000 the cost of the tax abatement is as follows: Mr. Bob Henry, The Robert Henry Corporation, spoke on behalf of USF Holland, Inc. The new terminal was slated to be built in 2001; however, due to the economic downturn, construction plans were cancelled. The existing terminal was built in 1998 and is located on William Richardson Drive in the Airport Economic Development Area. The economy has recently grown, and despite utilizing all 55 doors available, trucks are continuously sitting idle, waiting to enter the terminal. USF Holland, Inc. is now proceeding with the project and expects to break ground in approximately one month. on Estimated taxes over 7 years Without abatement $1,349,460 With 7 year abatement 580,268 Estimated cost of 7 year abatement 769,192 Mr. Bob Henry, The Robert Henry Corporation, spoke on behalf of USF Holland, Inc. The new terminal was slated to be built in 2001; however, due to the economic downturn, construction plans were cancelled. The existing terminal was built in 1998 and is located on William Richardson Drive in the Airport Economic Development Area. The economy has recently grown, and despite utilizing all 55 doors available, trucks are continuously sitting idle, waiting to enter the terminal. USF Holland, Inc. is now proceeding with the project and expects to break ground in approximately one month. on South Bend Redevelopment Commission Regular Meeting - -May 21, 2004 6. NEW BUSINESS B. Tax Abatements (1) continued... Upon a motion by Mr. Hunt, seconded by COMMISSION APPROVED RESOLUTION No. 2056 Mr. Kahn and unanimously carried, the APPROVING AN APPLICATION FOR REAL Commission approved Resolution No. 2056 PROPERTY TAX DEDUCTION FOR PROPERTY approving an application for real property LOCATED AT 5550 W. CLEVELAND ROAD IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. tax deduction for property located at (USF HOLLAND, INC.) 5550 W. Cleveland Road in the Airport Economic Development Area. (USF Holland, Inc.) C. South Bend Central Development Area (1) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Appraisal services at 117 and 119 East Wayne Street) Mr. Williams reported that four (4) proposals were requested for appraisal of the retail space located at 117 and 119 East Wayne Street. Three (3) proposals were received and the information is as follows: Jerome E. Michaels, MAI $2,000 R. E. Pitts & Associates $1,000 Ralph Lauver, MAI $2,000 Two appraisals are required to establish fair market values. Staff recommends accepting the proposals from Jerome E. Michaels, MAI and R. E. Pitts & Associates. Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for professional services in the South Bend Central Development Area and authorized staff to retain Jerome E. Michaels, MAI and R. E. Pitts & Associates based on the scope of services and fee proposed. 7 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN JEROME E. MICHAELS, MAI AND R. E. PITTS & ASSOCIATES BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. South Bend Redevelopment Commission Regular Meeting - -May 21, 2004 6. NEW BUSINESS C. South Bend Central Development Area continued... (2) Commission approval requested for erection of Standard Federal Monument Sign. (Leighton Plaza Courtyard) Mr. Williams reported that a request has been made by CB Richard Ellis, agent for Leighton Plaza, to erect a double faced monument sign at the northeast corner of the Leighton Plaza Courtyard. The proposal has been reviewed by staff, MEPT Leighton Plaza, Standard Federal Bank and the City of South Bend Design Review. The sign will be erected at no cost to the Commission and staff recommends approval. Mr. Williams presented a drawing to the Commission showing placement of the sign. Mr. Hunt asked if Mr. Jim Markle from Design Review had approved the proposal. Mr. Williams replied that he had. Mr. Inks noted that the proposal meets the Design Review requirements in the downtown area. The sign dimensions are approximately three feet high by twelve feet long, or thirty -six square feet total. Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission approved the request for erection of Standard Federal Monument Sign. (Leighton Plaza Courtyard) (3) Commission approval requested for Addendum to the Real Estate Lease Agreement between the South Bend Redevelopment Commission and Formatt, Inc. d/b /a "The Vine" dated December 19, 2003. COMMISSION APPROVED THE REQUEST FOR ERECTION OF STANDARD FEDERAL MONUMENT SIGN. (LEIGHTON PLAZA COURTYARD) South Bend Redevelopment Commission Regular Meeting - -May 21, 2004 6. NEW BUSINESS C. South Bend Central Development Area (3) continued... Mr. Mathia reported that on December 19, 2003, the Redevelopment Commission and Formatt, Inc., doing business as The Vine, entered into a lease agreement for the Palais retail space. The agreement called for a 60 -40 split in renovation costs. The agreement did not provide for decreases or increases in renovation costs. The addendum establishes a mechanism for covering cost overages and decreases at the same 60 -40 split. In addition, the addendum provides a system for paying the renovation contractor. This addendum will permit the continued orderly progress of the renovation currently on- going, and allow The Vine to move into its new location on schedule. The addendum was executed by Ms. Mary Spillane, owner of The Vine, on May 19, 2004. Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried, the Commission approved a request for Addendum to the Real Estate Lease Agreement between the South Bend Redevelopment Commission and Formatt, Inc. d/b /a "The Vine" dated December 19, 2003. (4) Commission approval requested for Access and Parking Easement Agreement between the City of South Bend, Santa Maria Realty, Inc. (Knights of Columbus) and Underwriters Laboratories, Inc. Mr. Inks requested that Item 6.C.(4) be tabled. There were no objections and the Commission tabled Item 6.C.(4). ILI 9 COMMISSION APPROVED A REQUEST FOR ADDENDUM TO THE REAL ESTATE LEASE AGREEMENT BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND FORMATT, INC. D /B /A "THE VINE" DATED DECEMBER 19, 2003. COMMISSION TABLED ITEM 6.C.(4). South Bend Redevelopment Commission Regular Meeting - -May 21, 2004 6. NEW BUSINESS (CONT.) %M� D. Sample -Ewing Development Area There was no business in the Sample -Ewing THERE WAS NO BUSINESS IN THE SAMPLE -EWING Development Area. DEVELOPMENT AREA. E. Airport Economic Development Area (1) Commission approval requested for Resolution No. 2057 approving and accepting the transfer of real property from the St. Joseph County Airport Authority. (Blackthorn Corporate Office Park) Ms. Greene reported that a staff report was presented by Mr. Owen Rock to the Commission on May 7, 2004 related to acquisition of property from the Airport Authority. A Purchase Agreement has since been negotiated, and because this is another governmental entity, Resolution No. 2057 approves and accepts the transfer of real property from the Airport Authority to the Redevelopment Commission. In addition, Resolution No. 2057 authorizes the President, Vice President and/or Secretary to execute and attest to any documents necessary to carry-out the intent of the Purchase Agreement. Upon a motion by Mr. Hunt, seconded by COMMISSION APPROVED RESOLUTION No. 2057 Mr. Kahn and unanimously carried, the APPROVING AND ACCEPTING THE TRANSFER OF Commission approved Resolution No. 2057 REAL PROPERTY FROM THE ST. JOSEPH COUNTY AIRPORT AUTHORITY. (BLACKTHORN approving and accepting the transfer of real CORPORATE OFFICE PARK) property from the St. Joseph County Airport Authority. (Blackthorn Corporate Office Park) F. South Bend Medical Services District There was no business in the South Bend THERE WAS NO BUSINESS IN THE SOUTH BEND Medical Services District. MEDICAL SERVICES DISTRICT. 10 South Bend Redevelopment Commission Regular Meeting- -May 21, 2004 IL 6. NEW BUSINESS (CONT.) G. West Washington- Chapin Development Area (1) Commission approval requested for proposal for professional services in the West Washington- Chapin Development Area. (Appraisal services, 1510 -1520 West Washington Street) Mr. Williams reported that a proposal for an updated appraisal was requested from Appraisal Group, Inc. for property located at 1510 -1520 West Washington Street; commonly known as Oil Express, Inc. The original appraisal, which was completed by Appraisal Group, Inc., was contracted through The South Bend Heritage Foundation. In addition, a second appraisal on the same property has been requested from Farrington Appraisals, Inc. The proposals are as follows: Appraisal Group, Inc. (update) $ 300 Farrington Appraisals, Inc. $1,500 Two appraisals are required to establish fair market values. Staff recommends accepting the proposals from both Appraisal Group, Inc. and Farrington Appraisals, Inc. Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission approved the request for professional services in the West Washington- Chapin Development Area and authorized staff to retain Appraisal Group, Inc. and Farrington Appraisals, Inc. based on the scope of services and fee proposed. H. Northeast Neighborhood Development Area There was no business in the Northeast IL Neighborhood Development Area. 11 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE WEST WASHINGTON -CHAPIN DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN APPRAISAL GROUP, INC. AND FARRINGTON APPRAISALS, INC. BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. THERE WAS NO BUSINESS IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting - -May 21, 2004 6. NEW BUSINESS (CONT.) Lw I. Other (1) Commission approval requested for acquisition of property located at 23977 Brick Road contingent upon completion of annexation into the City of South Bend and expansion of the Airport Economic Development Area. Mr. Williams reported that the property located at 23977 Brick Road is part of a voluntary acquisition. It is one of four parcels, completely surrounded by industrial uses, being brought into the City of South Bend. The purchase offer is contingent upon completion of annexation of the property into the City and expansion of the Airport Economic Development Area. Staff requests authorization to forward a purchase offer to the property owners of 23977 Brick Road in the amount of $134,000. Ms. Greene noted that the property owner is requesting that the Commission acquire the property. The property is not located within the City of South Bend; therefore, cannot be located within a development or redevelopment area. Acquisition cannot occur until such time as the property is first annexed into the City; and second, included in the Airport Economic Development Area Development Plan by an adopted resolution amending the Plan. Ms. Greene noted that the use of eminent domain is not permitted in the Airport Economic Development Area. Mr. Inks reported that as Blackthorn progressed, some small pockets of residential properties were surrounded by development resulting from the City's efforts in the area. If the owners voluntarily c 12 South Bend Redevelopment Commission Regular Meeting - -May 21, 2004 6. NEW BUSINESS (CONT.) I. Other (1) continued... wanted to be bought out, the City agreed to purchase the properties. The City implemented a policy concerning voluntary acquisitions under those circumstances. Making a purchase offer prior to annexation assures that the seller is comfortable with the price being offered, and is then willing to proceed with the involved process of annexation. The offering price is based on the average of two (2) appraisals; however, under the Voluntary Acquisition Policy, the offer can equal the higher of the two appraisals. Mr. Inks noted that the highest appraisal for 23977 Brick Road is $136,000. Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried, the Commission approved the acquisition of property located at 23977 Brick Road contingent upon completion of annexation into the City of South Bend and expansion of the Airport Economic Development Area. 7. PROGRESS REPORTS There were no progress reports. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for June 4, 2004 at 10:00 a.m. 9. ADJOURNMENT COMMISSION APPROVED THE ACQUISITION OF PROPERTY LOCATED AT 23977 BRICK ROAD CONTINGENT UPON COMPLETION OF ANNEXATION INTO THE CITY OF SOUTH BEND AND EXPANSION OF THE AIRPORT ECONOMIC DEVELOPMENT AREA. PROGRESS REPORTS NEXT COMMISSION MEETING There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Kahn made a motion that the meeting be adjourned. Mr. Hunt seconded the motion and the meeting was adjourned at 10:30 a.m. 13 14 South Bend Redevelopment Commission Regular Meeting —May 21, 2004 Marcia I. Jones, Presid 14 ) S�� L�L Donald E. Inks, Director