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Home My WebLink About12-05-03 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING December 5, 2003 10:00 a.m. 227 West Jefferson Boulevard Presiding: Robert W. Hunt, President South Bend, Indiana 1. ROLL CALL Members Present: Mr. Robert W. Hunt, President Ms. Marcia Jones, Vice - President Mr. Hardie Blake, Jr. Members Absent: Mr. Philip J. Faccenda, Secretary Mr. Matt Kahn Legal Counsel: Ms. Cheryl Greene, Esq. Redevelopment Staff: Mr. Owen Rock, Economic Development Specialist Ms. Pamela Morris, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. Robert Case, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Ms. Jennifer Hughes, Economic Development Planner Mr. Mike Beitzinger, Assistant Director, Econ Development Mr. Terry O'Brien, Loan Officer Others Present: Ms. Pam Paluszewski, Legal Department Mr. Tom Dockery, Adapto - Indiana, Inc. Mr. Jeff McGowan, Kruggel & Lawton 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 December 5, 2003 for approval. 212 CDBG COMMUNITY DEVELOPMENT Boise Cascade Office Products $ 127.11 Frame Factory 25.33 G South Bend Redevelopment Commission Regular Meeting — December 5, 2003 3. APPROVAL OF CLAIMS (CONT.) 212 CDBG COMMUNITY DEVELOPMENT continued... South Bend Tribune 172.02 Petty Cash 192.63 FedEx 123.89 General Fund - Telephone 254.94 324 FUND Meridian Title Corp. 100.00 The Troyer Group, Inc. 2,418.00 Walsh & Kelly, Inc. 138,747.29 Sopko, Nussbaum & Inabnit 1,006.25 Tri County News 117.57 City Of South Bend 374.87 Robert Henry Corporation 278,288.59 Ken Herceg & Associates, Inc. 1,260.00 SBD Reprographics 296.77 Meridian Title Corp. 150.00 414 SAMPLE -EWING HS Altman 100.00 South Bend Water Works 335.36 Danch Harper Associates, Inc. 5,680.00 Fitzmaurice Landscaping 3,105.00 Plews Shadley Racher & Braun 391.05 Baker General Maintenance 300.00 420 SBCDA Michiana Lock & Key 92.40 Lang Feeney & Associates 3,300.00 City Of South Bend 3,473.80 Bank One Trust Company 1,556,762.48 Blessings Music 22,040.58 AMPCO System Parking 440.00 EIS Environmental Engineers, Inc. 600.00 L South Bend Redevelopment Commission Regular Meeting— December 5, 2003 3. APPROVAL OF CLAIMS (CONT.) 420 SBCDA continued... Meridian Title Corp. Danch Harper Associates, Inc. Grauvogel & Associates CB Richard Ellis FUND 424 Mikolajewski & Associates, Inc. CB Richard Ellis 619 BLACKTHORN Meadowbrook Golf Group, Inc. Mr. Hunt asked for an explanation regarding the following claims: (1) Walsh & Kelly, Inc. $138,747.29; (2) Robert Henry Corporation $278,288.59; and (3) Bank One Trust Company. Mr. Case advised the Walsh & Kelly, Inc. claim is related to Ameritech Drive South and the Robert Henry Corporation claim is related to the Bosch Project, Phase III. Mr. Rock reported the Bank One Trust Company claim pays off downtown bonds and allows the reissue of new bonds to proceed. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted December 5, 2003, and ordered the checks to be released. L 200.00 6,520.00 567.50 125.00 931.56 300.00 7,000.00 $ 15,644.06 COMMISSION APPROVED THE CLAIMS SUBMITTED DECEMBER 5, 2003, AND ORDERED THE CHECKS TO BE RELEASED. South Bend Redevelopment Commission Regular Meeting— December 5, 2003 C 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. 2020 approving an application for personal property tax deduction for property located at 3722 Foundation Court in the Airport Economic Development Area. ( Adapto- Indiana, Inc.) Mr. O'Brien reported that Adapto - Indiana, Inc. is one of the largest manufacturers of parts for class -8 truck transmissions and has been in operation in South Bend for more than 55 years. The company proposes to purchase $1,590,000 of CNC equipment for its manufacturing process. This project will allow Adapto - Indiana to upgrade from a batch production concept to a lean, cellular production concept. The company's Indiana plant needs the new equipment and needs to convert to the new manufacturing process to remain competitive. The equipment will be moved into its new facility at 3722 Foundation Court. It is estimated that this project will create ten (10) new permanent jobs within the first year, representing a new annual payroll of $260,000. In addition, the project will retain seventy -nine (79) current jobs, representing G THERE WERE NO COMMUNICATIONS. THERE WAS NO OLD BUSINESS. South Bend Redevelopment Commission ILRegular Meeting — December 5, 2003 6. NEW BUSINESS A. Tax Abatements (1) continued... an annual payroll of $2,400,000. A review of the tax abatements previously granted, finds that the petitioner has been granted several 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 Incremental Allocation Area; therefore, the petition for personal 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 standard qualifications for a five (5) year personal property tax abatement. Staff notes, however, that the petitioner's tax payment history since 2000 indicates that taxes were not paid when due. Personal property taxes are now current, but real property taxes are past due for the Spring 2003 installment. A review of tax records prior to 2000 does not indicate any late tax payments. Based on a total estimated equipment cost of $1,590,000 the cost of the tax abatement is as follows: G5 South Bend Redevelopment Commission Regular Meeting— December 5, 2003 6. NEW BUSINESS A. Tax Abatements (1) continued... Mr. Tom Dockery, Divisional Manager of Adapto - Indiana, Inc., explained that the market is extremely competitive and pressures from overseas are being realized. The new equipment will help to maintain current business and is considered imperative in gaining future market share. Mr. Hunt referenced the delinquencies on prior taxes and asked if those taxes were abated. Mr. Jeff McGowan, tax representative for Adapto - Indiana, Inc., addressed the Commission. Personal property taxes are currently paid in full. There have been delinquencies on past taxes stemming from the economic downturn in early 2000. Prior to 2000, Adapto - Indiana, Inc. has never had a delinquency. Mr. Hunt noted that Adapto has been in the community for 55 years and is strongly encouraged to continue its business; however, the responsibility of Adapto to pay G 6 Estimated taxes over 5 years Without abatement $212,004 With 5 -year abatement $ 68,401 Estimated cost of 5 -year abatement $143,603 Mr. Tom Dockery, Divisional Manager of Adapto - Indiana, Inc., explained that the market is extremely competitive and pressures from overseas are being realized. The new equipment will help to maintain current business and is considered imperative in gaining future market share. Mr. Hunt referenced the delinquencies on prior taxes and asked if those taxes were abated. Mr. Jeff McGowan, tax representative for Adapto - Indiana, Inc., addressed the Commission. Personal property taxes are currently paid in full. There have been delinquencies on past taxes stemming from the economic downturn in early 2000. Prior to 2000, Adapto - Indiana, Inc. has never had a delinquency. Mr. Hunt noted that Adapto has been in the community for 55 years and is strongly encouraged to continue its business; however, the responsibility of Adapto to pay G 6 South Bend Redevelopment Commission Regular Meeting— December 5, 2003 6. NEW BUSINESS A. Tax Abatements (1) continued... taxes in a timely manner is also critical to the community. Mr. Hunt commented that all taxes were paid up to date just prior to submission of the present personal property tax abatement application. Mr. Hunt advised that the Redevelopment Commission does not approve the abatement of taxes. The Commission does, however, decide whether to relinquish tax incremental finance. Generally, the Commission is very favorable to expansion, but with the current uproar over taxes within the community, it is politically a difficult situation to give an abatement to a business with a history of tax delinquencies. Ms. Jones endorsed Mr. Hunt's remarks and stated that Adapto's application and purpose for the abatement are consistent with the Commission's philosophy for redevelopment. For the Commission to endorse the behavior of a business that has not been responsible in the payment of their taxes does not necessarily send a good message considering the current climate. Ms. Greene advised that the Commission's role in tax abatement is very limited. The Commission is limited solely to making a determination as to whether or not there is a willingness to waive generated TIF funds as a consequence of a tax abatement. The Common Council is the actual granting L South Bend Redevelopment Commission Regular Meeting— December 5, 2003 6. NEW BUSINESS A. Tax Abatements (1) continued... authority, and whatever action the Commission takes is not an endorsement or condemnation of the petitioner. Mr. Hunt recommended a motion for approval of the request for tax abatement and stated the Council will be strongly advised to rescind the abatement should there be future delinquencies. Ms. Greene suggested that the report prepared by staff addressing the tax issues of Adapto be forwarded to the Common Council with the application should the Commission agree to waive the TIF and approve Resolution No. 2020. Ms. Jones added that the Common Council be made aware that the Commission gave thought and consideration to all of the elements involved regarding the past tax history and current tax abatement application for Adapto - Indiana, Inc. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2020 approving an application for personal property tax deduction for property located at 3722 Foundation Court in the Airport Economic Development Area. ( Adapto- Indiana, Inc.) L 8 COMMISSION APPROVED RESOLUTION NO. 2020 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3722 FOUNDATION COURT IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (ADAPTO- INDIANA, INC.) South Bend Redevelopment Commission ILRegular Meeting — December 5, 2003 6. NEW BUSINESS (CONT.) B. Housing (1) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 622 Napoleon Blvd. (Toni Scott Barros) Mr. Rock advised that the loan is in the amount of $2,650 and the grant is in the amount of $7,500. Upon a motion by Ms. Jones seconded by Mr. Blake and unanimously carried, the Commission approved the Loan and Grant in accordance with the South Bend Home Improvement Loan Program for property located at 622 Napoleon Blvd. (Toni Scott Barros) (2) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 2510 W. Dunham Street. (Benjamin Bautista & Genoveva Martinez) Mr. Rock advised that the loan is in the amount of $3,400 and the grant is in the amount of $7,500. Upon a motion by Mr. Blake seconded by Ms. Jones and unanimously carried, the Commission approved the Loan and Grant in accordance with the South Bend Home Improvement Loan Program for property located at 2510 W. Dunham Street. (Benjamin Bautista & Genoveva Martinez) G 9 COMMISSION APPROVED THE LOAN AND GRANT IN ACCORDANCE WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 622 NAPOLEON BLVD. (TONI SCOTT BARROS) COMMISSION APPROVED THE LOAN AND GRANT IN ACCORDANCE WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 2510 W. DUNHAM STREET. (BENJAMIN BAUTISTA & GENOVEVA MARTINEZ) South Bend Redevelopment Commission Regular Meeting— December 5, 2003 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) Filing of Resolution No. 2014 expanding the boundaries of the South Bend Central Development Area, expanding the Allocation Area for purposes of Tax Increment Financing and amending the South Bend Central Development Area Development Plan and setting a Public Hearing for Friday, December 19, 2003 at 10:00 a.m. Ms. Huges reported that Resolution No. 2014 expands the boundaries of the South Bend Central Development Area by approximately three (3) acres. This expansion is necessitated by future planning goals, specifically the creation of the Northeast Neighborhood Development Area. The filing of Resolution No 2014 also sets a Public Hearing for December 19, 2003 at 10:00 a.m. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission accepted for filing, Resolution No. 2014 and set a Public Hearing on Resolution No. 2014 for Friday, December 19, 2003 at 10:00 a.m. at a Regular Meeting of the Redevelopment Commission. (2) Filing of Resolution No. 2015 contracting the boundaries of the South Bend Central Development Area, reducing the Allocation Area for purposes of Tax Increment Financing and amending the South Bend Central Development Area Development Plan and setting a Public Hearing for Friday, December 19, 2003 at 10:00 a.m. 10 COMMISSION ACCEPTED FOR FILING, RESOLUTION No. 2014 AND SET A PUBLIC HEARING ON RESOLUTION NO. 2014 FOR FRIDAY, DECEMBER 19, 2003 AT 10:00 A.M. AT A REGULAR MEETING OF THE REDEVELOPMENT COMMISSION. South Bend Redevelopment Commission Regular Meeting— December 5, 2003 6. NEW BUSINESS C. South Bend Central Development Area (2) continued... Ms. Huges reported that Resolution No. 2015 contracts the boundaries of the South Bend Central Development Area by approximately 77 acres. These are properties primarily owned by Madison Center, or pertaining to their long range expansion plans. The Madison Center will be brought into the Northeast Neighborhood Development Area. The filing of Resolution No. 2015 also sets a Public Hearing for December 19, 2003 at 10:00 a.m. Upon a motion by Mr. Blake, seconded by Ms. Jones and unanimously carried, the Commission accepted for filing, Resolution No. 2015 and set a Public Hearing on Resolution No. 2015 for Friday, December 19, 2003 at 10:00 a.m. at a Regular Meeting of the Redevelopment Commission. (3) Commission approval requested for lease Term Extension Letter Agreement between American Partners, L.P. and the City of South Bend Redevelopment Commission. (128 South Michigan Street, Osco Drug) Mr. Williams reported that Osco Drugs, located at 128 S. Michigan Street, has determined they will not renew the current lease which expired November 30, 2003. Osco has requested to remain in the building until the end of February 2004 at a rental figure of 125% of the current rate or 11 COMMISSION ACCEPTED FOR FILING, RESOLUTION No. 2015 AND SET A PUBLIC HEARING ON RESOLUTION NO. 2015 FOR FRIDAY, DECEMBER 19, 2003 AT 10:00 A.M. AT A REGULAR MEETING OF THE REDEVELOPMENT COMMISSION. South Bend Redevelopment Commission Regular Meeting— December 5, 2003 6. NEW BUSINESS C. South Bend Central Development Area (3) continued... $5,096.66 /monthly. The store will be fully stocked through the Christmas holiday season and gradually phased out by the end of January 2004. Staff recommends approval of the lease term extension. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved the Term Extension Letter Agreement between American Partners, L.P. and the City of South Bend Redevelopment Commission. (128 South Michigan Street, Osco Drug) D. Sample -Ewing Development Area There was no business in the Sample -Ewing Development Area. E. Airport Economic Development Area (1) Filing of Resolution No. 2019 expanding the boundaries of the Airport Economic Development Area, expanding the Allocation Area for purposes of Tax Increment Financing and amending the Airport Economic Development Area Development Plan and setting a Public Hearing for Friday, December 19, 2003 at 10:00 a.m. Mr. Case reported that Resolution No. 2019 adds property to the Airport Economic Development Area acquisition list. The property is located at 23953 Brick Road. r 12 COMMISSION APPROVED THE TERM EXTENSION LETTER AGREEMENT BETWEEN AMERICAN PARTNERS, L.P. AND THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION. (128 SOUTH MICHIGAN STREET, OSCO DRUG) THERE WAS NO BUSINESS IN THE SAMPLE -EWING DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting— December 5, 2003 6. NEW BUSINESS E. Airport Economic Development Area (1) continued... The filing of Resolution No. 2019 also sets a Public Hearing for December 19, 2003 at 10:00 a.m. Upon a motion by Mr. Blake, seconded by Ms. Jones and unanimously carried, the Commission accepted for filing Resolution No. 2019 and set a Public Hearing on Resolution No. 2019 for 10:00 a.m., December 19, 2003 at a Regular Meeting of the Redevelopment Commission. (2) Commission approval requested for proposal for professional services in the Airport Economic Development Area. (Environmental Site Assessment at 2502 Lawton Street) Mr. Case reported that three (3) proposals were received for a Phase I environmental site assessment of property located at 2502 Lawton Street, commonly known as Hoosier Tank. The proposals are as follows: Weaver Boos Consultants, LLC $1,400 EIS Environmental Engineers, Inc. $ 900 Wightman Petrie Environmental $1,250 Staff recommends accepting the proposal from EIS Environmental Engineers, Inc. in the amount of $900. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved the request for ++ 13 COMMISSION ACCEPTED FOR FILING RESOLUTION No. 2019 AND SET A PUBLIC HEARING ON RESOLUTION NO. 2019 FOR 10:00 A.M., DECEMBER 19, 2003 AT A REGULAR MEETING OF THE REDEVELOPMENT COMMISSION. COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN EIS South Bend Redevelopment Commission Regular Meeting— December 5, 2003 6. NEW BUSINESS E. Airport Economic Development Area (2) continued... professional services in the Airport Economic Development Area and authorized staff to retain EIS Environmental Engineers, Inc. based on the scope of services and fee proposed. F. South Bend Medical Services District There was no business in the South Bend Medical Services District. G. West Washington- Chapin Development Area There was no business in the West Washington - Chapin Development Area. H. South Side Development Area (1) Commission approval requested for Resolution No. 2022 related to the acquisition of property in the South Side Development Area by eminent domain. (505 E. Ireland Road) Mr. Schalliol reported that Resolution No. 2022 is related to the proposed acquisition of property located at 505 E. Ireland Road in the South Side Development Area. The Development Plan for the area was amended by Resolution No. 2013 on November 17, 2003 to include this property on its acquisition list. The property is presently for sale and staff is requesting a purchase offer be sent in the amount of $102,000. Staff also requests the approval be subject to City funding. 14 ENVIRONMENTAL ENGINEERS, INC. BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. THERE WAS NO BUSINESS IN THE SOUTH BEND MEDICAL SERVICES DISTRICT. THERE WAS NO BUSINESS IN THE WEST WASHINGTON -CHAPIN DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting— December 5, 2003 6. NEW BUSINESS H. South Side Development Area (1) continued... Ms. Greene noted that Indiana Code 36.7 -14 -19 governs the acquisition of real property by the Commission. Subsection E of the referenced section provides as follows: ► The Commission may tender a contract for the acquisition of property needed for redevelopment of blighted areas. The contract is not binding until money is available to pay the considerations set forth in the contract. Mr. Schalliol noted that funds for the acquisition have been identified and are pending final approval. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2022 related to the acquisition of property in the South Side Development Area by eminent domain pending identification of funds for the acquisition. (505 E. Ireland Road) I. Other (1) Filing of Resolution No. 2021 ratifying and confirming Resolution No. 2016 designating the Northeast Neighborhood Development Area, declaring the Northeast Neighborhood Development Area to be blighted, approving a Development Plan and conditions under 15 COMMISSION APPROVED RESOLUTION NO. 2022 RELATED TO THE ACQUISITION OF PROPERTY IN THE SOUTH SIDE DEVELOPMENT AREA BY EMINENT DOMAIN PENDING IDENTIFICATION OF FUNDS FOR THE ACQUISITION. (505 E. IRELAND ROAD) South Bend Redevelopment Commission Regular Meeting — December 5, 2003 6. NEW BUSINESS I. Other (1) continued... which relocation payments will be made, and establishing an Allocation Area for purposes of Tax Incremental Financing and setting a Public Hearing for Friday, December 19, 2003 at 10:00 a.m. Ms. Hughes reported that Resolution No. 2021 is the confirming resolution necessary for the creation of Northeast Neighborhood Development Area. The declaratory resolution, Resolution No. 2016, was approved by the Redevelopment Commission on November 17, 2003 and approved by the Area Plan Commission on November 18, 2003. The Common Council approved the Area Plan Commission order on November 24, 2003 which now allows the approval of the filing of the confirming resolution by the Redevelopment Commission, and a Public Hearing be set for December 19, 2003 at 10:00 a.m. Upon a motion by Mr. Blake, seconded by COMMISSION ACCEPTED FOR FILING RESOLUTION Ms. Jones and unanimously carried, the No. 2021 AND SET A PUBLIC HEARING ON Commission accepted for filing Resolution RESOLUTION NO. 2021 FOR 10:00 A.M., DECEMBER 19, 2003 AT A REGULAR MEETING OF No. 2021 and set a Public Hearing on THE REDEVELOPMENT COMMISSION. Resolution No. 2021 for 10:00 a.m., December 19, 2003 at a Regular Meeting of the Redevelopment Commission. 7. PROGRESS REPORTS There were no progress reports. THERE WERE NO PROGRESS REPORTS. 16 South Bend Redevelopment Commission Regular Meeting— December 5, 2003 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for December 19, 2003 at 10:00 a.m. 9. ADJOURNMENT NEXT COMMISSION MEETING There being no further business to come before the ADJOURNMENT Redevelopment Commission, Ms. Jones made a motion that the meeting be adjourned. Mr. Blake seconded the motion and the meeting was adjourned at 10:26 a.m. Robert W. Hunt, President 17 Donald E. Inks, Dir ctor