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HomeMy WebLinkAbout07-18-03 Redevelopment Commission MinutesL AM c. SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING July 18, 2003 10:00 a.m. Presiding: Robert W. Hunt, President 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Redevelopment Staff: Others Present: 2. APPROVAL OF MINUTES 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. Mr. Owen Rock, Assistant Director Ms. Pamela Morris, Recording Secretary Mr. Bob Case, Senior Economic Development Planner Mr. Tim Williams, Economic Development Specialist Mr. Mike Beitzinger, Assistant Director, Econ Development Mr. Marco Mariani, Assistant Director Comm Development There were no minutes available for approval. THERE WERE NO MINUTES AVAILABLE FOR APPROVAL. 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted July 18, 2003 for approval. 212 CDBG COMMUNITY DEVELOPMENT General Fund - Telephone Print Shop Tri County News South Bend Tribune Federal Express 1 L, 257.14 50.00 94.65 142.89 40.02 South Bend Redevelopment Commission Regular Meeting —July 18, 2003 3. APPROVAL OF CLAIMS (CONT.) 324 FUND St. Joseph County Treasurer CFH Landscaping Services J. F. New & Associates The Troyer Group Shamrock Network Design Youngs Excavating, Inc. 414 SAMPLE -EWING Baker General Maintenance Jerome E. Michaels Meridian Title Corp. South Bend Water Works Fitzmaurice Landscaping 420 SBCDA Tri County News South Bend Tribune CB Richard Ellis Jerome E. Michaels Stuard & Associates The Troyer Group Danch, Hamer & Associates David J. Sasano FUND 424 CB Richard Ellis 619 BLACKTHORN Meadowbrook Golf Group, Inc. c. 3,062.05 666.00 390.00 24,115.00 1,500.00 88,222.21 476.84 6,000.00 85.00 442.21 4,009.00 55.98 77.33 125.00 3,000.00 14,800.00 2,738.00 1,629.00 6,000.00 150.00 7,000.00 $ 164.543.62 South Bend Redevelopment Commission Regular Meeting —July 18, 2003 3. APPROVAL OF CLAIMS (CONT.) Upon a motion by Ms. Jones, seconded by COMMISSION APPROVED THE CLAIMS Mr. Faccenda and unanimously carried, the SUBMITTED JULY 18, 2003, AND Commission approved the Claims submitted ORDERED THE CHECKS TO BE RELEASED. July 18, 2003, and ordered the checks to be released. 4. COMMUNICATIONS Mr. Rock reported that there was one (1) communication and that Ms. Greene would address it. Ms. Greene advised that she received a communication from Attorney Jim Masters, who represents Mr. Emmett McNease, owner of the property located on the corner of Main and Monroe. Previously, the Commission had gone through the process of adding that property to its acquisition list for the South Bend Central Development Area. Mr. McNease had filed a remonstrance and it was mutually agreed that the time for Mr. McNease to pursue the remonstrance through the courts would be extended to allow the parties to negotiate and further discuss settlement. Mr. Masters has requested, on behalf of his client, that the property be removed from the acquisition list. There is not sufficient information for the Legal Department to provide the Commission with a recommendation concerning Mr. Master's demand. Ms. Greene recommended that the Commission refer this matter to staff to investigate this issue and present a report . and recommendation at the next regularly scheduled Commission meeting. Specifically, staff will report its recommendation to the Commission whether to retain or remove the property from the acquisition list. 3 South Bend Redevelopment Commission Regular Meeting —July 18, 2003 4. COMMUNICATIONS (CONT.) Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission referred the communication of Mr. Masters to staff for further investigation with the objective of taking action at the Redevelopment Commission Meeting of August 1, 2003. 1 t IT- E- There was no Old Business. 6. NEW BUSINESS A. Public Hearings (1) Public Hearing on Resolution No. 1977 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. Mr. Williams reported that Resolution No. 1977 will amend the Airport Economic Development Area Development Plan by expanding the boundaries, adding properties - to the acquisition list and expanding the allocation area for the purposes of TIF. Staff recommends approval of Resolution No. 1977. Mr. Hunt opened the Public Hearing on Resolution No. 1977 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. 1977, Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. 4 COMMISSION REFERRED THE COMMUNICATION OF MR. MASTERS TO STAFF FOR FURTHER INVESTIGATION WITH THE OBJECTIVE OF ACTION BEING TAKEN AT THE REDEVELOPMENT COMMISSION MEETING OF AUGUST 1, 2003. THERE WAS NO OLD BUSINESS. PUBLIC HEARING South Bend Redevelopment Commission Regular Meeting —July 18, 2003 6. NEW BUSINESS A. Public Hearings (1) continued... Mr. Rock advised that the Public Hearing file was complete and requested the following items be entered into the record: (1) Copy of Resolution No. 1977; (2) Copy of the notice of hearing; (3) Affidavits from the South Bend Tribune and the Tri- County News that the Notice of Public Hearing was published in those newspapers on July 4, 2003; (4) A statement from Mr. Schalliol that on July 3, 2003, copies of the Notice of Public Hearing were sent to the affected property owners and registered neighborhood associations; and (5) As of IL 10:00 a.m. this morning, no written remonstrances were received. (2) Commission approval requested for Resolution No. 1977. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1977 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. (Airport Economic Development Area) Ms. Greene noted that the approval of Resolution No. 1977 is the sixteenth (16) expansion area to be added to the Airport Economic Development Area Development G COMMISSION APPROVED RESOLUTION NO. 1977 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. (AIRPORT ECONOMIC DEVELOPMENT AREA) South Bend Redevelopment Commission IL� Regular Meeting —July 18, 2003 6. NEW BUSINESS A. Public Hearings (2) continued... Plan. Staff is anticipating a more comprehensive legal description that will capture the entire area with the sixteen (16) expansion areas. B. Tax Abatements (1) Commission approval requested for Resolution No. 1987 approving an application for real property tax deduction for properties located at 130, 530, 621, 630, 636, and 726 E. Broadway Street in the Sample -Ewing Development Area. (City of South Bend Board of Public Works) Mr. Beitzinger noted this is another set of tax abatements for American Home Dreams, Inc. building in the Southeast Neighborhood. There have been eight previous tax abatement resolutions for American Home Dreams. This time there will be six (6) new homes each having 1,800 sq ft, three bedrooms, 2% baths, a full basement and an attached two car garage. The selling price for each will be approximately $110,500, for a total project cost of $663,000. A review of the tax abatements previously granted finds that American Home Dreams, Inc. is in compliance with reporting for the previous tax abatements. The building commissioner has reviewed this petition and finds the properties to be ILproperly zoned for the proposed project. 6 South Bend Redevelopment Commission ILRegular Meeting —July 18, 2003 6. NEW BUSINESS B. Tax Abatements (1) continued... The properties are located in the Sample/Ewing Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. The petitioner meets the qualifications for a five year residential tax abatement under the tax abatement ordinance. Mr. Beitzinger noted that the buyers of these homes will save, using the current tax rates, IL approximately $1,525 per year for five (5) years, totaling just over 7,600. During that same period we are estimating that the buyers will pay approximately $650 per year, so total taxes to be paid over five (5) years by each of the owners of these homes will be approximately $3,260. Based on a total project cost of $663,000 (which includes all six (6) homes) the cost of the tax abatements are as follows: 7 Estimated taxes over five (5) years Without abatement $65,280.90 With five (5) year $19,559.10 abatement Estimated cost of $45,722.10 five (5) yr_abatement 7 South Bend Redevelopment Commission Regular Meeting_ —July 18, 2003 6. NEW BUSINESS B. Tax Abatements (1) continued... Mr. Mariani, project manager for the Sample -Ewing Development Area, addressed the Commission representing the owner of the lots, the Board of Public Works. Mr. Mariani stated that the project is part of an on -going partnership with American Home Dreams to build new homes in the redevelopment area. Mr. Hunt commented that the project has been extremely successful. Upon a motion by Ms. Jones, seconded by COMMISSION APPROVED RESOLUTION No. 1987 Mr. Faccenda and unanimously-carried, the APPROVING AN APPLICATION FOR REAL Commission approved Resolution No. 1987 PROPERTY TAX DEDUCTION FOR PROPERTIES LOCATED AT 130, 530, 621, 630, 636, AND 726 approving an application for real property E. BROADWAY STREET IN THE SAMPLE -EWING tax deduction for properties located at 130, DEVELOPMENT AREA. (CITY OF SOUTH BEND 530, 621, 630, 636, and 726 E. Broadway BOARD OF PUBLIC WORKS) Street in the Sample -Ewing Development Area. (City of South Bend Board of Public Works) Mr. Mariani noted for the record the original project was for fifteen (15) city owned lots. A few of those lots are going to be replated. Those changes will be reflected in the legal description when staff files with the City Council. C. Housing (1) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 1015 N. College Street. (Carol A. Burns) 8 South Bend Redevelopment Commission Regular Meeting —July 18, 2003 A 6. NEW BUSINESS C. Housing (1) continued... Mr. Rock advised that the loan is in the amount of $1,350 and the grant is in the amount of $7,500. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Loan and Grant in accordance with the South Bend Home Improvement Loan Program for property located at'l015 N. College Street. (Carol A. Burns) (2) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 455 S. Phillipa Street. (Roger H. Curry & Maryellen Curry) Mr. Rock advised that the loan is in the amount of $2,550 and the grant is in the amount of $7,500." Upon a motion by Ms. Jones, seconded by Mr. Faccenda. and unanimously carried, the Commission approved the Loan and Grant in accordance with the South Bend Home Improvement Loan Program for property located at 455 S. Phillipa Street. (Roger H. Curry & Maryellen Curry) (3) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 1101 N: Wilber Street. (Bernice R. Krusinski) M COMMISSION APPROVED THE LOAN AND GRANT IN ACCORDANCE WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 1015 N. COLLEGE STREET. (CAROL A. BURNS) COMMISSION APPROVED THE LOAN AND GRANT IN ACCORDANCE WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 455 S. PHILLIPA STREET. (ROGER H. CURRY & MARYELLEN CURRY) South Bend Redevelopment Commission Regular Meeting —July 18, 2003 6. NEW BUSINESS C. Housing (3) continued... Mr. Rock advised that the loan is in the amount of $2,600 and the grant is in the amount of $7,500. Upon a motion by Ms. Jones, seconded by COMMISSION APPROVED THE LOAN AND GRANT Mr. Faccenda and unanimously carried, the IN ACCORDANCE WITH THE SOUTH BEND HOME Commission approved the Loan and Grant IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 1101 N. WILBER STREET. in accordance with the South Bend Home (BERNICE R. KRUSINSKI) Improvement Loan Program for property STONER) located at 1101 N. Wilber Street. (Bernice R. Krusinski) (4) Commission approval requested for Loan and Grant in connection with the South .. Bend Home Improvement Loan Program for property located at 834 E. Sorin Street. (Rosie L. Stoner) Mr. Rock advised that the loan is in the amount of $4,850 and the grant is in the amount of $7,500. Upon a motion by Ms. Jones, seconded by COMMISSION'APPROVED THE LOAN AND GRANT Mr. Faccenda and unanimously carried, the IN ACCORDANCE WITH THE SOUTH BEND HOME Commission approved the Loan and Grant IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 834 E. SOWN STREET. (ROSIE L. in accordance with the South Bend Home STONER) Improvement Loan Program for property located at 834 E. Sorin Street. (Rosie L. Stoner) D. South Bend Central Development Area (1) Commission approval requested for Letter of Agreement from Crowe, Chizek and Company, LLP to perform financial advisory services for the South Bend Central Development Area Bond. 10 South Bend Redevelopment Commission Regular Meeting —July 18, 2003 6. NEW BUSINESS D. South Bend Central Development Area (1) continued... Mr. Rock noted that the Letter of Agreement is for an amount not to exceed $40,000. Crowe Chizek will do an analysis to determine financing alternatives, planning and financial structuring, disclosure, presentations and sale, closing and follow - through of the bonds. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Letter of Agreement with Crowe, Chizek and Company, LLP to perform financial advisory services for the South Bend Central Development Area Bond. E. Sample -Ewing Development Area There was no business in the Sample -Ewing Development Area. F. Airport Economic Development Area (1) Commission authorization requested to execute the Certificate of Completion for Lot 4B in the Blackthorn Corporate Office Park in the Airport Economic Development Area. (Peterson Engineering) Mr. Case noted that Peterson Engineering has completed their project. They plan to sell their building to Villing and Co. and need to show clear title. A Certificate of Completion was never executed for them at 11 COMMISSION APPROVED THE LETTER OF AGREEMENT WITH CROWE, CHIZEK AND COMPANY, LLP TO PERFORM FINANCIAL ADVISORY SERVICES FOR THE SOUTH BEND CENTRAL DEVELOPMENT AREA BOND THERE WAS NO BUSINESS IN THE SAMPLE -EWING DEVELOPMENT AREA. A South Bend Redevelopment Commission Regular Meeting —July 18, 2003 6. NEW BUSINESS F. Airport Economic Development Area (1) continued... the time they completed the building. Peterson will rent space in the building from Villing and continue to operate from there. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Certificate of Completion for Lot 4B in the Blackthorn Corporate Office Park in the Airport Economic Development Area (Peterson Engineering) (2) Commission approval requested for demolition services for property located at 52680 Olive Road in the Airport Economic Development Area. (Olive Road/Nimtz Parkway Reconstruction) Mr. Case noted that this is one of the houses the Commission purchased for the expansion of Olive Road. The Fire Department has been using it for training. It is riow ready to be demolished. Three proposals were received for the work: Warner & Sons $3,965 Torok Excavating $5,800 Grade -Rite $5,300 The staff recommends accepting the proposal from Warner & Sons for $3,965. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission authorized staff to hire 12 COMMISSION APPROVED THE CERTIFICATE OF COMPLETION FOR LOT 4B IN THE BLACKTHORN CORPORATE OFFICE PARK IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (PETERSON ENGINEERING) COMMISSION AUTHORIZED STAFF TO HIRE WARNER & SONS FOR DEMOLITION SERVICES FOR PROPERTY LOCATED AT 52680 OLIVE ROAD IN THE AIRPORT ECONOMIC DEVELOPMENT South Bend Redevelopment Commission Regular Meeting —July 18, 2003 6. NEW BUSINESS AREA. (OLIvE ROAD/Nmrz PARKWAY RECONSTRUCTION) F. Airport Economic Development Area (2) continued... Warner & Sons for demolition services for property located at 52680 Olive Road in the Airport Economic Development Area. (Olive Road/Nimtz Parkway Reconstruction) (3) Commission approval requested for Resolution No. 1979 related to acquisition of property in the Airport Economic Development Area. Ms. Greene noted that the agenda incorrectly includes the words "by eminent domain" at the end of the resolution title. The Commission may not use eminent domain in the Airport Economic Development Area and the title reported on the agenda is therefore, incorrect. The title of Resolution No. 1979 is correctly noted on the resolution sought to be acted on by the Commission. Mr. Williams noted that Resolution No. 1979 sets the acquisition price for 24505 Cleveland Road at $392,500. Ms. Greene noted that this property is located outside the Airport Economic Development Area and outside the City of South Bend. This property and the property in the following item are being crowded out. by development in the AEDA. The property owners are agreeable to being purchased and anxious for the purchase to take place as quickly as possible. Annexation procedures have begun and a public hearing on I 13 South Bend Redevelopment Commission Regular Meeting —July 18, 2003 6. NEW BUSINESS F. Airport Economic Development Area (3) continued... expanding the AEDA to include the properties is scheduled. Passage of Resolution No. 1979 would be approved subject to annexation of the property and subsequent passage of Resolution No. 1977 making it part of the AEDA. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1979 related to acquisition of property in the Airport Economic Development Area, subject to annexation of the property into the City of South Bend and approval of Resolution No. 1977 expanding the Airport Economic Development Area boundaries to include the property. (4) Staff report on acquisition of property located in the Airport Economic Development Area. (23953 Brick Road, Gaby Property) Mr: Williams explained that the Gabys would like a letter of intent from the Commission indicating its interest in purchasing their property once the annexation is complete and the property. incorporated into the Airport Economic Development Area. The letter indicates a potential offering price of $100,000, subject to the voluntary annexation and expansion of the AEDA. 14 COMMISSION APPROVED RESOLUTION NO. 1979 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA, SUBJECT TO ANNEXATION OF THE PROPERTY INTO THE CITY OF SOUTH BEND AND APPROVAL OF RESOLUTION NO. 1977 EXPANDING THE AIRPORT ECONOMIC DEVELOPMENT AREA BOUNDARIES TO INCLUDE THE PROPERTY. South Bend Redevelopment Commission Regular Meeting —July 18, 2003 6. NEW BUSINESS F. Airport Economic Development Area (4) continued... Upon a motion by Mr. Faccenda, seconded COMMISSION AUTHORIZED STAFF TO SEND THE by Ms. Jones and unanimously carried, the LETTER OF INTENT TO PURCHASE 23953 BRICK Commission authorized staff to send the ROAD OWNED BY THE GABYS. letter of intent to purchase 23953 Brick Road owned by the Gabys. G. South Bend Medical Services District There was no business in the South Bend THERE WAS NO BUSINESS IN THE SOUTH BEND Central Development Area. CENTRAL DEVELOPMENT AREA. H. West Washington- Chapin Development Area There was no business in the West Washington- THERE WAS NO BUSINESS IN THE WEST Chapin Development urea. WASHINGTON- CHAPIN DEVELOPMENT AREA. I. South Side Development Area (1) Commission approval requested for Resolution No. 1988 pledging certain tax increment revenues to the payment of the City of South Bend, Indiana, Economic -Development Revenue Bonds of 2003, together with interest thereon. (Kite Capital, LLC Project) Ms. Greene explained that this pledge resolution is related to the redevelopment of Scottsdale Mall, to be known as "Erskine Village ". Resolution No. 1988 is a pledge resolution in which the Commission pledges the tax increment generated by the development to support an EDC bond which the developer will purchase. This will be the Commission's public investment in Phase I 15 South Bend Redevelopment Commission Regular Meeting —July 18, 2003 6. NEW BUSINESS I. South Side Development Area (1) continued... of the project which consists of construction of a 123,680 sq ft Target Store on the Montgomery Wards site. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1988 pledging certain tax increment revenues to the payment of the City of South Bend, Indiana, Economic Development Revenue Bonds of 2003, together with interest thereon. (Kite Capital, LLC Project) J. Other There was no other business. 7. PROGRESS REPORTS Mr. Rock showed the Commissioners a glowing article about Blackthorn Golf Course that appeared in Great Lakes Golf magazine. The staff wasn't expecting the article and was pleasantly surprised. Ms. Greene noted that demolition should begin on Scottsdale Mall in the next couple of weeks. The Commissioners should receive invitations to attend. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for August 1, 2003 at 10:00 a.m. 16 COMMISSION APPROVED RESOLUTION NO. 1988 PLEDGING CERTAIN TAX INCREMENT REVENUES TO THE PAYMENT OF THE CITY OF SOUTH BEND, INDIANA, ECONOMIC DEVELOPMENT REVENUE BONDS OF 2003, TOGETHER WITH INTEREST THEREON. (KITE CAPITAL, LLC PROJECT) THERE WAS NO OTHER BUSINESS. PROGRESS REPORTS NEXT COMMISSION MEETING South Bend Redevelopment Commission Regular Meeting —July 18, 2003 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Ms. Jones made a motion that the meeting be adjourned. Mr. Faccenda seconded the motion and the meeting was adjourned at 10:28 a.m. Robert W. Hunt, President 17 ADJOURNMENT Donald E. Inks, Director