The URL can be used to link to this page

Home My WebLink About01-16-04 Redevelopment Commission MinutesA c SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING January 16, 2004 10:00 a.m. Presiding: Robert W. Hunt, President 1. ROLL CALL Members Present: Member Absent: Legal Counsel: 227 West Jefferson Boulevard South Bend, Indiana Mr. Robert W. Hunt, President Ms. Marcia Jones, Vice - President Mr. Philip J. Faccenda, Secretary Mr. Matt Kahn Mr. Hardie Blake, Jr. Ms. Cheryl Greene, Esq. Redevelopment Staff: Mr. Owen Rock, Assistant Director Ms. Pamela Morris, Recording Secretary Mr. Bob Case, Senior Economic Development Planner Mr. Robert Mathia, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Mr. Terry O'Brien, Loan Officer Others Present: Ms. Pam Paluszewski, Legal Department Mr. Mike Urbanski, G & M Properties 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 January 16, 2004 for approval. 212 CDBG COMMUNITY DEVELOPMENT IEDC St. Joseph County Recorder FedEx Boise Cascade Office Products Corp. 435.00 146.00 113.23 90.38 South Bend Redevelopment Commission Regular Meeting— January 16, 2004 3. APPROVAL OF CLAIMS (CONT.) 324 FUND City Of South Bend FUND 305 SBCDA 2003 BOND Crowe Chizek & Company, LLC McGladrey & Pullen, LLP Wells Fargo Bank SBD Reprographics: South Bend Kone Inc. 414 SAMPLE -EWING Baker General Maintenance 420 SBCDA R. E. Pitts & Associates, Inc. Bank One City Of South Bend Grauvogel & Associates Warner & Sons, Inc. Jerome E. Michaels FUND 424 Mikolajewski & Associates, Inc. FUND 428 AIRPORT 2003 BOND Crowe Chizek & Company, LLC Wells Fargo Bank DLZ Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the Claims submitted January 16, 2004, and ordered the checks to be released. 458.54 40,000.00 1,500.00 500.00 61.00 82,138.50 400.00 7,650.00 837.50 1,615.70 1,220.00 9,095.00 3,800.00 2,484.16 35,000.00 500.00 30,343.86 $ 217.604.26 2 COMMISSION APPROVED THE CLAIMS SUBMITTED JANUARY 16, 2004, AND ORDERED THE CHECKS TO BE RELEASED. South Bend Redevelopment Commission Regular Meeting— January 16, 2004 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Tax Abatements (1) Commission approval requested for Resolution No. 2030 approving an application for real property tax deduction for property located at 1723 and 1803 South Phillipa Street, 1912,1916,1920, 2006, 2010, 2014, 2018, 2022, 2209, 2117, 2113, 2109, 2105, 2101, 1915, and 1911 South Wabash Street, 1708 and 1712 South Taylor Street, and 2645 and 2002 Prospect Street in the Sample -Ewing Development Area. (G & M Properties) Mr. O'Brien reported the following information for the Commission's consideration: G & M Properties /Garden Homes proposes to build twenty -two (22) homes on lots located in the Sample -Ewing Development Area. The five room, one story homes will be 1,036 sq ft each with two -three bedrooms, two baths on a full basement with a detached garage. The total cost for each new home is estimated to be between $90,000 and $110,000. A review of the tax abatements previously granted, finds that G & M Properties has c THERE WERE NO COMMUNICATIONS. THERE WAS NO OLD BUSINESS. South Bend Redevelopment Commission Regular Meeting— January 16, 2004 6. NEW BUSINESS (CONT.) A. Tax Abatements (1) continued... been granted thirteen (13) previous residential tax abatements. The building commissioner has reviewed the petition and finds the properties to be properly zoned for the proposed use. A review of the South Bend Redevelopment designation area finds that the properties are located in the Sample Ewing Development Area; therefore, the abatement must 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. Based on a total estimated project cost of $110,000 (average per property) the cost of the tax abatements are as follows: Mr. Mike Urbanski representing Garden Homes and G & M Properties addressed the Commission. The bulk of the properties are on South Wabash Street between Calvert 4 Estimated taxes over five (5) years Without abatement $7,820.80 With five (5) year $2,468.15 abatement Estimated cost of $5,352.65 five (5) yr abatement Mr. Mike Urbanski representing Garden Homes and G & M Properties addressed the Commission. The bulk of the properties are on South Wabash Street between Calvert 4 South Bend Redevelopment Commission Regular Meeting- January 16, 2004 C, a 6. NEW BUSINESS (CONT.) A. Tax Abatements (1) continued... and Ewing. The City of South Bend has installed water mains in both blocks and sewer lines have been completed in the first block. Sewer lines for the second block are budgeted and scheduled to be done in the spring. Some of the homes will be built on two (2) lots. Out of the twenty -two (22) properties, sixteen (16) or seventeen (17) homes will actually be constructed. Six (6) homes have already been sold with construction to begin after the tax abatement process. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 2030 approving an application for real property tax deduction for property located at 1723 and 1803 South Phillipa Street, 1912, 1916, 1920, 2006, 2010, 2014, 2018, 2022, 2209, 2117, 2113, 2109, 2105, 2101, 1915, and 1911 South Wabash Street, 1708 and 1712 South Taylor Street, and 2645 and 2002 Prospect Street in the Sample -Ewing Development Area. (G & M Properties) B. Housing (1) Commission approval requested for Subordination Agreement between the City of South Bend on behalf of its Bureau of Housing and Maria M. Hegedus. (535 Riverside Drive) G COMMISSION APPROVED RESOLUTION NO. 2030 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1723 AND 1803 SOUTH PHILLIPA STREET, 1912, 1916, 1920, 2006, 2010, 2014, 2018, 2022, 2209, 2117, 2113, 2109, 2105, 2101, 1915, AND 1911 SOUTH WABASH STREET, 1708 AND 1712 SOUTH TAYLOR STREET, AND 2645 AND 2002 PROSPECT STREET IN THE SAMPLE -EWING DEVELOPMENT AREA. (G & M PROPERTIES) South Bend Redevelopment Commission Regular Meeting— January 16, 2004 6. NEW BUSINESS (CONT.) B. Housing (1) continued... Mr. Rock reported that the Agreement subordinates the City's interest in a mortgage in the original amount of $6,950 executed by Maria M. Hegedus on November 26, 2003. The property is located at 535 Riverside Drive and is described as Lot Numbered Fourteen (14) of Hammond and Whitcomb's Addition to the City of South Bend. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved a Subordination Agreement between the City of South Bend on behalf of its Bureau of Housing and Maria M. Hegedus. (535 Riverside Drive) C. South Bend Central Development Area (1) Commission approval requested for Assignment of Environmental Indemnity for property located in the South Bend Central Development Area. (Press Ganey) Ms. Greene advised that the Assignment is related to the Commission's obligations under development agreements executed between the Commission, Press Ganey, and Crowe, Chizek and Company concerning redevelopment of the property known as the River Glen Office Campus. It was originally owned by Crowe Chizek, and as part of the redevelopment project, was transferred to Press Ganey. The Commission is requested c COMMISSION APPROVED A SUBORDINATION AGREEMENT BETWEEN THE CITY OF SOUTH BEND ON BEHALF OF ITS BUREAU OF HOUSING AND MARIA M. HEGEDUS. (535 RIVERSIDE DRIVE) South Bend Redevelopment Commission Regular Meeting — January 16, 2004 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... to assign and transfer to Press Ganey all of its rights and interests under the Environmental Indemnity dated December 23, 2002. The assignment is consistent with the previous development agreements executed by the Commission. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved an Assignment of Environmental Indemnity for property located in the South Bend Central Development Area. (Press Ganey) (2) Commission approval requested for Resolution No. 2031 a resolution of the South Bend Redevelopment Commission determining to pay certain expenses incurred for local public improvements in or serving the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) from the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) Special Fund and setting a Public Hearing for Friday, February 6, 2004 at 10:00 a.m. Mr. Rock advised Resolution No. 2031 has an expenditure amount of $5,410,623 and requested that the Commission set a public hearing for February 6, 2004. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 2031 L -- 7 COMMISSION APPROVED AN ASSIGNMENT OF ENVIRONMENTAL INDEMNITY FOR PROPERTY LOCATED IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (PRESS GANEY) COMMISSION APPROVED RESOLUTION NO. 2031 AND SET A PUBLIC HEARING FOR FRIDAY, FEBRUARY 6, 2004 AT 10:00 A.M. TO APPROPRIATE MONIES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting— January 16, 2004 L�l 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (2) continued... and set a Public Hearing for Friday, February 6, 2004 at 10:00 a.m. to appropriate monies in the South Bend Central Development Area. (3) Commission approval requested for Assignment of Lease from Esprit D'Ecor to Bilger & Sons, Inc., d /b /a Esprit Decor. Mr. Mathia reported that the current owners of Esprit D'Ecor, Ms. Noreen Howard and Ms. Jill Houghton, have decided to sell their business. A buyer, Ms. Carolyn Bilger, has been found. The closing to complete the sale has been set for January 26, 2004. A precondition for the sale is approval by the Redevelopment Commission to transfer the lease for Esprit D'Ecor to the new owner. The Assignment will transfer the lease to the new owner, Bilger & Sons, Inc., d/b /a Esprit Decor. The rental amount and term of the lease will remain unchanged. Staff has reviewed Ms. Bilger's resume and financial statement and found them to be acceptable. The Commission is requested to approve the draft Assignment of Lease, authorize the Commission's Legal Counsel to finalize the Assignment in an acceptable form and authorize the President and Secretary of the Commission to sign the final form of Assignment. It is intended that execution of the Assignment by Ms. Bilger and Ms. Howard and /or Ms. Houghton will take place at the closing of the sale of the business. Staff recommends approval. N. South Bend Redevelopment Commission Regular Meeting— January 16, 2004 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (3) continued... Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved an Assignment of Lease from Esprit D'Ecor to Bilger & Sons, Inc., d/b /a Esprit Decor. D. Sample -Ewing Development Area (1) Commission approval requested for Resolution No. 2033 a resolution of the South Bend Redevelopment Commission determining its intent to pay certain expenses incurred for local public improvements in or serving the Sample- Ewing Allocation Area (South Bend Allocation Area No. 8) from the Sample - Ewing Allocation Area (South Bend Allocation Area No. 8) Special Fund and setting a Public Hearing for Friday, February 6, 2004 at 10:00 a.m. Mr. Rock advised Resolution No. 2033 has an expenditure amount of $781,696 and sets a public hearing for February 6, 2004. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 2033 and set a public hearing for February 6, 2004 at 10:00 a.m. to appropriate monies in the Sample -Ewing Development Area. E. Airport Economic Development Area (1) Commission approval requested for Resolution No. 2028 related to acquisition of property in the Airport Economic Development Area. 6 COMMISSION APPROVED AN ASSIGNMENT OF LEASE FROM ESPRIT D'ECOR TO BILGER & SONS, INC., D /B /A ESPRIT DECOR. COMMISSION APPROVED RESOLUTION NO. 2033 AND SET A PUBLIC HEARING FOR FEBRUARY 6, 2004 AT 10:00 A.M. TO APPROPRIATE MONIES IN THE SAMPLE -EWING DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting—January 16, 2004 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (1) continued... Mr. Case reported that Resolution No. 2028 is related to the Hoosier Tank site located at 2502 Lawton Street. Two (2) acquisition appraisals were obtained resulting in an average purchase price of $370,000. Staff is continuing to work with the Kinnucan Family Trust on acquisition of the property. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 2028 related to acquisition of property in the Airport Economic Development Area. (2) Commission approval requested for appointment of Matthew Kahn to the Blackthorn Golf Course Joint Committee. Mr. Rock requested that Mr. Matt Kahn be appointed to the Blackthorn Golf Course Joint Committee replacing Mr. Philip J. Faccenda effective January 1, 2004. The term of the appointment will be until a new successor is appointed. There were no objections to the appointment. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission appointed Mr. Matt Kahn to the Blackthorn Golf Course Joint Committee effective January 2, 2004. (3) Commission approval requested for Resolution No. 2035 a resolution of the South Bend Redevelopment Commission 10 COMMISSION APPROVED RESOLUTION NO. 2028 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. COMMISSION APPOINTED MR. MATT KAHN TO THE BLACKTHORN GOLF COURSE JOINT COMMITTEE EFFECTIVE JANUARY 2, 2004. South Bend Redevelopment Commission Regular Meeting— January 16, 2004 C 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (3) continued... determining its intent to pay certain expenses incurred for local public improvements in or serving the Airport Economic Development Area Allocation Area No. 1 from the Airport Economic Development Area Allocation Area No. 1 Special Fund and setting a Public Hearing for Friday, February 6, 2004 at 10:00 a.m. Mr. Rock advised Resolution No. 2035 has an expenditure amount of $9,352,469 and sets a public hearing for February 6, 2004. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 2035 and set a public hearing for February 6, 2004 at 10:00 a.m. to appropriate monies in the Airport Economic Development Area. F. South Bend Medical Services District (1) Commission approval requested for Resolution No. 2037 a resolution of the South Bend Redevelopment Commission determining to pay certain expenses incurred for local public improvements in or serving the Downtown Medical Services District (DMSD Allocation Area) from the Downtown Medical Services District Special Fund (DMSD Allocation Fund) and setting a Public Hearing for Friday, February 6, 2004 at 10:00 a.m. 11 COMMISSION APPROVED RESOLUTION NO. 2035 AND SET A PUBLIC HEARING FOR FEBRUARY 6, 2004 AT 10:00 A.M. TO APPROPRIATE MONIES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. L South Bend Redevelopment Commission Regular Meeting— January 16, 2004 6. NEW BUSINESS (CONT.) F. South Bend Medical Services District (1) continued... Mr. Rock advised Resolution No. 2037 has an expenditure amount of $533,232 and sets a public hearing for February 6, 2004. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 2037 and set a public hearing for February 6, 2004 at 10:00 a.m. to appropriate monies in the Downtown Medical Services District. G. West Washington- Chapin Development Area (1) Commission approval requested for 40� Resolution No. 2039 a resolution of the South Bend Redevelopment Commission determining to pay certain expenses incurred for local public improvements in or serving the West Washington- Chapin Allocation Area (South Bend Allocation Area No. 7) from the West Washington - Chapin Allocation Area (South Bend Allocation Area No. 7) Special Fund and setting a Public Hearing for Friday, February 6, 2004 at 10:00 a.m. Mr. Rock advised Resolution No. 2039 has an expenditure amount of $457,715 and sets a public hearing for February 6, 2004. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 2039 and set a public hearing for February 6, 2004 at 10:00 a.m. to appropriate monies in the West Washington- Chapin Development Area. 12 COMMISSION APPROVED RESOLUTION NO. 2037 AND SET A PUBLIC HEARING FOR FEBRUARY 6, 2004 AT 10:00 A.M. TO APPROPRIATE MONIES IN THE DOWNTOWN MEDICAL SERVICES DISTRICT. COMMISSION APPROVED RESOLUTION NO. 2039 AND SET A PUBLIC HEARING FOR FEBRUARY 6, 2004 AT 10:00 A.M. TO APPROPRIATE MONIES IN THE WEST WASHINGTON- CHAPIN DEVELOPMENT AREA. 14 South Bend Redevelopment Commission Regular Meeting— January 16, 2004 6. NEW BUSINESS (CONT.) H. South Side Development Area There was no business in the South Side Development Area. I. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. J. Other There was no Other business. 7. PROGRESS REPORTS Mr. Rock advised the Commission that Mr. Bob Case, Senior Economic Development Planner, has taken a new position at The Sterling Group in Mishawaka. Mr. Case worked for the City of South Bend five (5) years and will be terminating employment effective January 23, 2004. Ms. Greene recently attended a conference on the use of eminent domain, the latest trends in valuation issues and condemnation proceedings. There are many changes taking place nationally and an updated report will be prepared for the Commission. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for February 6, 2004 at 10:00 a.m. 13 THERE WAS NO BUSINESS IN THE SOUTH SIDE DEVELOPMENT AREA. THERE WAS NO BUSINESS IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. THERE WAS NO OTHER BUSINESS. NEXT COMMISSION MEETING South Bend Redevelopment Commission Regular Meeting — January 16, 2004 G 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Kahn made a motion that the meeting be adjourned. Ms. Jones seconded the motion and the meeting was adjourned at 10:23 a.m. Robert W. Hunt, President C: 14 ADJOURNMENT D ald E. Inks, Director