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HomeMy WebLinkAbout08-01-03 Redevelopment Commission MinutesA SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 1, 2003 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. Hardie Blake, Jr. Mr. Matt Kahn Ms. Cheryl Greene, Esq. Redevelopment Staff: Mr. Owen Rock, Assistant Director Ms. Pamela Morris, Recording Secretary Mr. Bob Case, Senior Economic Development Planner Mr. Tim Williams, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Mr. Mike Beitzinger, Assistant Director, Econ Development Others Present: Mr. Emmett McNease, Witmer McNease Music Store Mr. Mark Witucki, Mann +Hummel USA, Inc. Mr. Earl Hoff, Federal -Mogul Powertrain, Inc. Mr. Rich Fox, Federal -Mogul Powertrain, Inc. Ms. Pam Paluszewski, Legal Department Mr. John Livingston, Legal Department 2. APPROVAL OF MINUTES A. Commission approval of the Minutes of the Regular Meeting of June 20, 2003. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved the Minutes of the Regular Meeting of June 20, 2003. B. Commission approval of the Minutes of the Rescheduled Regular Meeting of July 3, 2003. 1 COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF .TUNE 20, 2003. r� L t, South Bend Redevelopment Commission Regular Meeting— August 1, 2003 2. APPROVAL OF MINUTES B. continued... Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved the Minutes of the Rescheduled Regular Meeting of July 3, 2003. C. Commission approval of the Minutes of the Regular Meeting of July 18, 2003. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved the Minutes of the Regular Meeting of July 18, 2003. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE RESCHEDULED REGULAR MEETING OF JULY 3, 2003. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF JULY 18, 2003. Redevelopment Commission Claims submitted August 1, 2003 for approval. 212 CDBG COMMUNITY DEVELOPMENT Andy Laurent 324 FUND The Frame Factory Club Car 414 SAMPLE -EWING Baker General Maintenance. Meridial Title (Meridian Title) Plews Shadley Racher & Braun 420 SBCDA Meridian Title Lang, Feeney & Associates, Inc. Cressy & Everett Management Corp. Walker Parking Consultants Lehman & Lehman, Inc. $ 445.14 10.00 5,534.90 200.00 6,910.00 519.12 950.00 2,750.00 1,070.00 2,102.31 903.75 South Bend Redevelopment Commission Regular Meeting— August 1, 2003 3. CLAIMS CONT. FUND 424 Mikolajewski & Assocates, Inc. 931.56 $ 22,326.78 Ms. Greene noted for the record a misspelling on the Claims list under 414 Sample- Ewing. The claim for "Meridial Title" in the amount of $6,910.00 should actually be "Meridian Title" Corporation. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Claims submitted August 1, 2003, and ordered the checks to be released. 4. COMMUNICATIONS IL There were no Communications. 5. OLD BUSINESS COMMISSION APPROVED THE CLAIMS SUBMITTED AUGUST 1, 2003, AND ORDERED THE CHECKS TO BE RELEASED. THERE WERE NO COMMUNICATIONS. c, A. Request from the Emmett McNease Revocable Living Trust to remove property from the Commission's acquisition list for the South Bend Central Development Area pursuant to Resolution No. 1973. Ms. Greene had reported at the Commission's meeting of July 18, 2003 that she had received a communication from Attorney Jim Masters who represents the Emmett McNease Revocable Living Trust, owner of property located at 418 and 424 -430 South Main Street. Mr. Masters, on behalf of his client, is seeking to have the McNease properties removed from the Commission's acquisition list for the South 3 South Bend Redevelopment Commission Regular Meeting— August 1, 2003 (4100, 5. OLD BUSINESS A. continued... Bend Central Development Area. The Commission had added the McNease properties to its acquisition list for the South Bend Central Development Area by way of its Resolution No. 1973 adopted on June 6, 2003. At the time of the adoption of Resolution No. 1973, Mr. McNease filed a timely remonstrance which, after receiving evidence and hearing testimony, the Commission had overruled. In adopting Resolution No. 1973, the Commission found that the amendment to the Development Plan to include these properties was reasonable and appropriate, conformed to the comprehensive plan and the Commission further recognized the public benefit and utility of the proposed project to redevelop the area. By mutual agreement of the Commission and the property owner, the Commission extended the time for Mr. McNease to appeal the Commission's decision. That time has nearly run and Mr. Masters, on behalf of his client, requested that the Commission reconsider its decision and instead, remove the property from the Commission's acquisition list. At the Commission's meeting on July 18 ', the Commission referred this matter to Staff to investigate and present a report and recommendation at the next regularly scheduled meeting. Staff is prepared to make its report and recommendation to the Commission. However, Mr. Masters advised Legal Counsel that he had a hearing in court in Starke County earlier today and anticipated that he would be late for the meeting. Mr. Masters further advised that he planned to be available by the end of the meeting. Ms. Greene requested that Old Business be moved to the end of the agenda to give Mr. Masters sufficient time to travel from c, South Bend Redevelopment Commission Regular Meeting— August 1, 2003 5. OLD BUSINESS A. continued... Knox to South Bend and permit him the opportunity to be present when the Commission considered this item. There were no objections and the Commission moved Old Business item 5.A. to the end of the agenda. 6. NEW BUSINESS A. Tax Abatements (1) Commission approval requested for Resolution No. 1989 approving an application for personal property tax deduction. (Mann +Hummel USA, Inc.) Mr. Beitzinger reported that Mann +Hummel USA, Inc. is a manufacturer of air intake manifolds for General Motors. In order for continued growth, new equipment is needed to accommodate demand and increase productivity. Proposed new equipment will provide the South Bend facility with the additional capacity to manufacture air intake manifolds. It is estimated that this project will create ten (10) new permanent jobs within the first year, representing a new annual payroll of $250,000, and will maintain 130 existing permanent full time jobs with an annual payroll of $4,420,000. In addition to hiring ten (10) new employees, local contractors will be used for installation and start up. The total cost of the project is estimated at $2.6 million. L, COMMISSION MOVED OLD BUSINESS ITEM 5.A. TO THE END OF THE AGENDA. South Bend Redevelopment Commission Regular Meeting— August 1, 2003 6. NEW BUSINESS A. Tax Abatements (1) continued... A review of the tax abatements previously granted, finds that the petitioner has been associated with or granted three (3) previous personal property abatements. The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed use. 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. The petitioner meets the qualifications for a five (5) year personal property tax abatement under the tax abatement ordinance. Based on a total estimated equipment cost of $2,600,000 the cost of the tax abatement is as follows: c. Estimated taxes over five (5) yrs. Without abatement $444,145 With 5 year abatement $143,300 Estimated cost of five (5) year abatement $300,845 c. South Bend Redevelopment Commission Regular Meeting— August 1, 2003 6. NEW BUSINESS A. Tax Abatements (1) continued... Upon a motion by Mr. Blake, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1989 approving an application for personal property tax deduction. (Mann +Hummel USA, Inc.) (2) Commission approval requested for Resolution No. 1991 approving an application for personal property tax deduction. (Federal -Mogul Powertrain, Inc.) Mr. Beitzinger stated that the Commissioners are no doubt familiar with Federal -Mogul Powertrain, Inc. which has had eleven (11) previous tax abatements since 1986, of which the first two abatements were granted by the St. Joseph County Council. The petitioner is in compliance with the reporting requirements for all previous abatements. Federal -Mogul South Bend is a manufacturer of automotive pistons for customers such as GM, Ford and Nissan. The company began operations in South Bend in 1987 and has seen steady growth throughout its sixteen (16) years in our community. For this project, the company is proposing to purchase three new anodize machines. Each machine will apply hard anodizing to the top piston ring groove. This is a new operation for the South Bend facility and is becoming a standard for high 7 COMMISSION APPROVED RESOLUTION NO. 1989 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION. (MANN +HUMMEL USA, INC.) L South Bend Redevelopment Commission Regular Meeting— August 1, 2003 IL 6. NEW BUSINESS A. Tax Abatements (2) continued... performance pistons. The total cost of the new equipment is estimated at $4.45 million. It is estimated that this project will create twelve (12) new permanent jobs within the first year, representing a new annual payroll of $348,000, and will maintain 566 existing permanent full time jobs with an annual payroll of $23,700,000. The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed use. 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. The petitioner meets the qualifications for a five (5) year personal property tax abatement under the tax abatement ordinance. Based on a total estimated equipment cost of $4,448,000 the cost of the tax abatement is as follows: t8 Estimated taxes over five (5) yrs. Without abatement $756,280 With 5 year abatement $244,007 t8 L South Bend Redevelopment Commission Regular Meeting— August 1, 2003 6. NEW BUSINESS A. Tax Abatements (2) continued... Estimated cost of five (5) year abatement $512,273 Mr. Beitzinger introduced Mr. Earl Hoff, Controller, and Mr. Rich Fox of Federal - Mogul Powertrain, Inc. Mr. Hoff advised the Commission that he has been an employee of Federal -Mogul since the day the plant opened, sixteen (16) years ago. Mr. Hoff expressed his pleasure at again being before the Commission to request consideration for tax abatement. IL Mr. Hoff then displayed an actual piston manufactured by Federal -Mogul for the Commission's examination. Federal -Mogul currently ships 400,000 pistons per week; approximately one quarter of the pistons used in North America. Federal -Mogul is also the largest piston company in the world. Mr. Hunt inquired if very much of Federal - Mogul's business was exported. Mr. Hoff responded that, while Federal -Mogul has shipped to Canada, Mexico, Germany and the United Kingdom, most of its business is conducted in North America. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1991 approving an application for personal property tax deduction. (Federal -Mogul Powertrain, Inc.) 9 COMMISSION APPROVED RESOLUTION NO. 1991 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION. (FEDERAL -MOGUL POWERTRAIN, INC.) South Bend Redevelopment Commission Regular Meeting— August 1, 2003 IL 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 242 E. Victoria Street. (Mary Ann Quinn) Mr. Rock advised that the loan is in the amount of $2,500 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 242 E. Victoria Street. (Mary Ann Quinn) C. South Bend Central Development Area There was no business in the South Bend Central Development Area. D. Sample -Ewing Development Area (1) Commission authorization to submit real property tax abatement petition on behalf of Rose Fuel & Materials, Inc. Mr. Laurent reported that staff was requesting authorization to submit a real property tax abatement petition on behalf of Rose Fuel & Materials, Inc. Rose Fuel will be constructing out - buildings in the Oliver Industrial Park while the Commission still owns the property, so it is necessary for the Commission to submit the petition on behalf 10 COMMISSION APPROVED THE LOAN AND GRANT IN ACCORDANCE WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 242 E. VICTORIA STREET. (MARY ANN QUINN) THERE WAS NO BUSINESS IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting— August 1, 2003 6. NEW BUSINESS D. Sample -Ewing Development Area (1) continued... of Rose Fuel. The proposed investment for the tax abatement is approximately 8,000 sq ft of new office space and 15,000 sq ft of maintenance and warehousing space. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission authorized submittal of a real property tax abatement petition on behalf of Rose Fuel & Materials, Inc. E. Airport Economic Development Area (1) Commission approval requested for an Agreement Between the City of South Bend, Indiana, Redevelopment Commission, and Glick Leasing Company concerning the construction of certain right -of -way improvements. (Glick Commerce Park) Mr. Case reported that the agreement with Glick Leasing Company involves approximately twenty -seven (27) acres of property situated in the City of South Bend, Indiana, commonly known as the Park One Northwest Subdivision in the Airport Economic Development Area. The agreement is for the construction of 600 linear feet of public right -of -way improvements and the construction of all other infrastructure improvements. The proposed cost has been estimated at $207,000. 11 COMMISSION AUTHORIZED SUBMITTAL OF A REAL PROPERTY TAX ABATEMENT PETITION ON BEHALF OF ROSE FUEL & MATERIALS, INC. South Bend Redevelopment Commission Regular Meeting— August 1, 2003 6. NEW BUSINESS E. Airport Economic Development Area (1) continued... Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved the Agreement Between the City of South Bend, Indiana, Redevelopment Commission, and Glick Leasing Company concerning the construction of certain right -of -way improvements. (Glick Commerce Park) (2) Staff report on acquisition of property being annexed into the Airport Economic Development Area. (23953 Brick Rd, Gaby Property) Mr. Williams reported that a Purchase Offer IL was extended to Bob & Carolyn Gaby on July 18, 2003 for $100,000 contingent upon successful completion of the annexation process and inclusion of said property into the Airport Economic Development Area. The Gaby's countered staff's offer with a figure of $106,800. Staff recommends accepting the counter offer. Ms. Greene noted that this property is located outside of the Airport Economic Development Area and outside of the City of South Bend. This property is being crowded out by development in the AEDA. The property owners are argreeable to the property being purchased and understand that the Commission cannot complete this transaction unless or until the property is annexed into the City and the AEDA has been expanded to include this property. 12 COMMISSION APPROVED A REQUEST FOR AN AGREEMENT BETWEEN THE CITY OF SOUTH BEND, INDIANA, REDEVELOPMENT COMMISSION, AND GLICK LEASING COMPANY CONCERNING THE CONSTRUCTION OF CERTAIN RIGHT -OF -WAY IMPROVEMENTS. ( GLICK COMMERCE PARK) South Bend Redevelopment Commission Regular Meeting— August 1, 2003 IL 6. NEW BUSINESS E. Airport Economic Development Area (2) continued... Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission accepted the counter offer of $106,800 for property located at 23953 Brick Road, contingent on annexation and inclusion into the Airport Economic Development Area. (Gaby property) 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) Filing of Resolution No. 1990 a resolution of the South Bend Redevelopment Commission modifying and confirming Resolution No. 1955 designating the South Side Economic Development Project District, approving the South Side Economic Development Project District Development Plan as modified, and determining to create an Economic Development Project District for purposes of Sales Tax Increment Financing and setting a Public Hearing on Resolution No. 1990 for Monday, August 11, 2003 at 10:00 a.m. 13 COMMISSION ACCEPTED THE COUNTER OFFER OF $106,800 FOR PROPERTY LOCATED AT 23953 BRICK ROAD, CONTINGENT ON ANNEXATION AND INCLUSION INTO THE AIRPORT ECONOMIC DEVELOPMENT AREA. (GABY PROPERTY) 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— August 1, 2003 6. NEW BUSINESS H. South Side Development Area (1) continued... It was noted by Ms. Greene that the Public Hearing on Resolution No. 1990 will be held in the Department of Community and Economic Development, County -City Building, 12`h Floor rather than the usual meeting place due to the unavailability of Room 1308. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission accepted for filing Resolution No. 1990 and set a public hearing on Resolution No. 1990 for Monday, August 11, 2003 at 10:00 a.m. at a Rescheduled Regular Meeting of the Redevelopment Commission. I. Other There was no Other business. 5. OLD BUSINESS (CONT.) A. Request from the Emmett McNease Revocable Living Trust to remove property from the Commission's acquisition list for the South Bend Central Development Area pursuant to Resolution No. 1973. Mr. Hunt commented that the end of the meeting was approaching and Attorney Masters was not yet present to represent Mr. McNease. Mr. Hunt informed Mr. McNease of a Rescheduled Regular 14 j COMMISSION ACCEPTED FOR FILING RESOLUTION No. 1990 AND SET A PUBLIC HEARING ON RESOLUTION No. 1990 FOR MONDAY, AUGUST H, 2003 AT 10:00 A.M. AT A RESCHEDULED REGULAR MEETING OF THE REDEVELOPMENT COMMISSION. THERE WAS NO OTHER BUSINESS. South Bend Redevelopment Commission Regular Meeting— August 1, 2003 5. OLD BUSINESS A. continued... Commission Meeting being held Monday, August 11, 2003 and inquired whether Mr. McNease wished to wait until the next meeting so that he could have his attorney present before the Commission proceeds. Ms. Greene also asked Mr. McNease whether he would prefer that the Commission delay taking any action on his request to remove property from the acquisition list until such time as Mr. Masters could be present to make arguments on his behalf, or if he instead preferred that the Commission take action at today's meeting. Mr. McNease responded he would be agreeable to carry this matter over until the next meeting which is scheduled for August 11, 2003. Ms. Greene reminded Mr. McNease that the meeting would be held on the 12`h floor of the County -City building at 10:00 a.m. rather than the 13`h floor as is the usual meeting place due to the fact that Room 1308 was not available at that time. Ms. Greene also stated that she would be sending a letter to Mr. Masters advising him of the details of today's meeting and further advising Mr. Masters of the decision to defer this matter to the next meeting in order to permit Mr. Masters to be in attendance. Because this matter was postponed until the August 11, 2003 meeting, the Staff report and recommendation was deferred until the next meeting so that all matters might be considered by the Commission at that time. 15 14 South Bend Redevelopment Commission Regular Meeting— August 1, 2003 7. PROGRESS REPORTS There were no progress reports. 8. NEXT COMMISSION MEETING The next meeting of the Commission will be a Rescheduled Regular Meeting on August 11, 2003 at 10:00 a.m. 9. ADJOURNMENT THERE WERE NO PROGRESS REPORTS. NEXT COMMISSION MEETING There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Blake made a motion that the meeting be adjourned. Ms. Jones seconded the motion and the meeting was adjourned at 10:24 a.m. Robert W. Hunt, President 16 Donald E. Inks, Direr.tor