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Home My WebLink About07-03-03 Redevelopment Commission Minutesi r C+J 14 SOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULED REGULAR MEETING July 3, 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 Mr. Matt Kahn Mr. Hardie Blake, Jr. Members Absent: Ms. Marcia Jones, Vice - President Mr. Philip J. Faccenda, Secretary Legal Counsel: Ms. Cheryl Greene, Esq. Redevelopment Staff: Mr. Owen Rock, Assistant Director Ms. Pamela Morris, Recording Secretary Mr. Bob Case, Senior Economic Development Planner Mr. Bill Schalliol, Economic Development Planner Mr. Robert Mathia, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Mr. Terry O'Brien, Loan Officer Others Present: Ms. Pam Paluszewski, Legal Department Mr. Marco Mariani, Community Development Mr. Jay Harwood, Rose Fuel & Materials, Inc. .Ms. Monica Brickel, Kruggel & Lawton, CPA Mr. Kurt Kruggel, Kruggel & Lawton, CPA Mr. John Axelberg, Axelberg & Axelberg, LLC 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 July 3, 2003 for approval. 1 I f South Bend Redevelopment Commission Rescheduled Regular Meeting —July 3, 2003 3. CLAIMS (CONT.) 212 CDBG COMMUNITY DEVELOPMENT Boise Casade Baker & Daniels Federal Express 324 FUND Douglas Landscape Inc. H. S. Altman, Inc. Shamrock Network Design Abonmarche Consultants of Indiana, L.L.C. Illinois Lawn Equipment Inc. Sopko, Nussbaum & Inabnit 414 SAMPLE -EWING Baker General Maint. IL Tri -M Construction CA Studios Plews Shadley Racher & Braun L 420 SBCDA Meridian Title R. E. McCloskey & Associates, Inc. FUND 427 SAMPLE/EWING- CAPITAL FUND Building Dept. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted July 3, 2003, and ordered the checks to be released. 2 176.00 56.34 344.46 54,061.80 13,496.65 600.00 13,800.00 22,111.88 87.50 200.00 134.00 87.25 245.92 150.00 5,000.00 E. 1 11 $ 110,631.80 COMMISSION APPROVED THE CLAIMS SUBMITTED JULY 3, 2003, AND ORDERED THE CHECKS TO BE RELEASED. South Bend Redevelopment Commission IL Rescheduled Regular Meeting —July 3, 2003 C+J 4. COMMUNICATIONS There were no Communications. THERE WERE NO COMMUNICATIONS. 5. OLD BUSINESS A. Sample -Ewing Development Area (1) Commission approval requested for Agreement By and Between the South Bend Redevelopment Commission and Rose Fuel & Materials, Inc. Mr. Laurent briefly presented the Commission with a progress report regarding the Rose Fuel & Materials, Inc. Development Agreement with the Redevelopment Commission. Rose Fuel expressed an interest in moving from their East Bank site into the new Oliver Industrial Park. The Agreement furthers those goals, and basically lays out both the Commission's and the Developer's obligations. In essence, the Commission will be doing the bulk of the exterior renovation work including demolishing the furnaces inside (which is currently underway), masonry work, and doing some basic fitting out of the building. The - developer will then turn that building, the Boilerhouse, into their showroom and offices. They will construct a new warehouse building on site and a new brickyard. Mr. Jay Harwood, of Rose Fuel & Materials, . Inc. expressed excitement regarding the project and indicated they are ready to move forward. 3 South Bend Redevelopment Commission ILRescheduled Regular Meeting —July 3, 200.3 5. OLD BUSINESS A. Sample -Ewing Development Area (1) continued... Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the Agreement By and Between the South Bend Redevelopment Commission and Rose Fuel & Materials, Inc. (Oliver Industrial Park) 6. NEW BUSINESS A. Tax Abatements (1) Commission approval requested for Resolution No. 1985 approving an application for real property tax deduction for property located at 2025 S. Main Street. (Axelberg & Axelberg, LLC) Mr. O'Brien reported that Axelberg and Axelberg, LLC is the real estate holding company for General Sheet Metal Works, Inc., a metal fabricating company. General Sheet Metal Works continues to grow and is in need of additional space. Axelberg and Axelberg has now purchased the former Alro Steel building at 2025 S. Main Street, which is adjacent to General Sheet Metal Works' existing facility. The building will be utilized to expand General Sheet Metal Works' welding capabilities; however, the building is in need of numerous repairs and upgrades prior to occupancy. The total cost for the improvements has been estimated at $600,000. It is estimated that this project will create ten (10) new permanent jobs 4 COMMISSION APPROVED THE AGREEMENT BY AND BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND ROSE FUEL & MATERIALS, INC. (OLIVER INDUSTRIAL PARK) South Bend Redevelopment Commission Rescheduled Regular Meeting —July 3, 2003 6. NEW BUSINESS A. Tax Abatements (1) continued... within the first year, representing a new annual payroll of $338,000. The project will also maintain 112 existing full -time positions representing an annual payroll of $4,850,000. A review of the tax abatements previously granted, finds that the petitioner and General Sheet Metal Works have been granted three previous tax abatements. The petitioner and General Sheet Metal Works are in compliance with the reporting requirements for the previous abatements. The building commissioner has reviewed the petition and r 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 Sample Ewing Development Area, which is a Tax Incremental Allocation Area; therefore, this petition for real property tax abatement first requires the approval of the South Bend Redevelopment Commission. [A A review of the Tax Abatement Ordinance finds that the petitioner meets the qualifications for a ten (10) year real property tax abatement. Based on a total project cost of $600,000 the cost of the tax abatement is as follows: 5 South Bend Redevelopment Commission Rescheduled Regular Meeting —July 3, 2003 6. NEW BUSINESS A. Tax Abatements (1) continued... Mr. O'Brien introduced Mr. Axelberg to the Commission. IL Mr. Axelberg first thanked the Commission and the City for all the help they have been in the past on expansion projects. Mr. Axelberg then expressed that they like their neighborhood and they are delighted to be able to stay on South Main Street as they continue to grow. The first year, Axelberg & Axelberg anticipates at least ten (10) new positions in the building. They are currently at 115 employees. Their five (5) year plan is to go from $16M in sales to about $30M and diversify their customer base, thereby making the business not so seasonal. Mr. Hunt inquired if this is the property directly south of their current building. 6 Estimated taxes over ten (10) years Without abatement $128,925 With ten (10 year $ 65,107 abatement Estimated cost of $ 63,818 ten (10) year abatement Mr. O'Brien introduced Mr. Axelberg to the Commission. IL Mr. Axelberg first thanked the Commission and the City for all the help they have been in the past on expansion projects. Mr. Axelberg then expressed that they like their neighborhood and they are delighted to be able to stay on South Main Street as they continue to grow. The first year, Axelberg & Axelberg anticipates at least ten (10) new positions in the building. They are currently at 115 employees. Their five (5) year plan is to go from $16M in sales to about $30M and diversify their customer base, thereby making the business not so seasonal. Mr. Hunt inquired if this is the property directly south of their current building. 6 South Bend Redevelopment Commission Rescheduled Regular Meeting —July 3, 2003 6. NEW BUSINESS A. Tax Abatements (1) continued... Mr. Axelberg replied that is is. It's the Alro Steel Building; and it should look a lot better shortly. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 1985 approving an application for real property tax deduction for property located at 2025 S. Main Street. (Axelberg & Axelberg, LLC) Ms. Greene confirmed with Mr. Axelberg the actual tax deduction is granted by the Common Council. Mr. Axelberg stated that he understood and appreciates the Redevelopment Commission's continued support. B. Housing (1) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 230 E. Dayton Street. (Virginia J. Young) 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. Kahn, 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 230 E. Dayton Street.. (Virginia J. Young) 7 COMMISSION APPROVED RESOLUTION NO. 1985 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2025 S. MAIN STREET. (AXELBERG & AXELBERG, LLC) COMMISSION APPROVED THE LOAN AND GRANT IN ACCORDANCE WITH THE SOUTH _BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 230 E. DAYTON STREET. (VIRGINIA J. YOUNG) South Bend Redevelopment Commission Rescheduled Regular Meeting —July 3, 2003 6. NEW BUSINESS C. South Bend Central Development Area (1) Commission approval requested for Letter Proposal from Walker Parking Consultants to conduct a Charette held for the St. Joseph County Library and the South Bend Civic Theater. (Avon Theater) Mr. Mathia reported that Walker Parking Consultants has submitted a proposal to provide consulting services for a Charette for the St. Joseph County Library and the South Bend Civic Theater. The Library and the Theater have expressed a desire to use the same space currently occupied by the Avon Theater and Baer's parking lot on South Michigan Street. The Charette will be held to begin developing a strategy for the use of that space to meet the needs of both parties. Use of Walker's services is important because the primary issue to be addressed at the Charette is the provision of adequate parking for both the Library and the Theater. The Redevelopment Commission is requested to sign a Letter Proposal and approve the expenditure of an amount not -to- exceed $6,000 for the Charette and follow -up planning. Staff recommends approval. Ms. Greene advised that the Walker Parking Consultants Letter Proposal needs to have the paragraph removed that addresses the percentage of late fees on unpaid balances not paid within thirty (30) days of date of invoice. South Bend Redevelopment Commission ILIRescheduled Regular Meeting —July 3, 2003 6. NEW BUSINESS C. South Bend Central Development Area (1) continued... Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved a Letter Proposal, as corrected, from Walker Parking Consultants to conduct a Charette for the St. Joseph County Library and the South Bend Civic Theater. (Avon Theater) D. Sample -Ewing Development Area (1) Commission approval requested for Contract For Sale Of Land For Private Development with Ziolkowski Construction. (Parcel 7, Studebaker Corridor Disposition Area) Mr. Rock requested that Item 6.D.(1) be tabled. There were no objections and the Commission tabled Item 6.D.(1). (2) Commission approval requested for Resolution No. 1984 related to acquisition of property' in the Sample -Ewing Development Area by eminent domain. Mr. Schalliol reported that Resolution No. 1984 is a resolution related to acquisition of property at 715 Ohio Street. There are actually two (2) parcels; Tax Key No. 18- 7018 -0755 and No. 18- 7017 -0757. Both parcels are owned by Dick Jones. One parcel contains a house and the other is a vacant lot. Resolution No. 1984 sets the price for both parcels combined at $24,050. x COMMISSION APPROVED A LETTER PROPOSAL, AS CORRECTED, FROM WALKER PARKING CONSULTANTS TO CONDUCT A CHARETTE FOR THE ST. JOSEPH COUNTY LIBRARY AND THE SOUTH BEND CIVIC THEATER. (AVON THEATER) COMMISSION TABLED ITEM 6.D.(I). South Bend Redevelopment Commission Rescheduled Regular Meeting —July 3, 2003 6. NEW BUSINESS D. Sample -Ewing Development Area (2) continued... Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 1984 related to acquisition of property in the Sample -Ewing Development Area by eminent domain. (3) Commission approval requested for Resolution No. 1986 approving the transfer of real property to the City of South Bend, Indiana. (American Home Dreams, Inc.) Mr. Mariani reported as part of the City's ongoing partnership with American Home Dreams, Inc. Resolution No. 1986 will transfer eight (8) lots, located on Broadway Street in the southeast neighborhood, to the Board of Public Works. This will facilitate the development of six (6) new homes along Broadway Street that should be under construction by September 1, 2003, and are estimated to be completed within two (2) years. These homes are of the same size and scope that American Home Dreams has built previously. Mr. Mariani expressed excitement for the continued partnership with American Home Dreams, Inc. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 1986 approving the transfer of real property to the City of South Bend, Indiana. (American Home Dreams, Inc.) 10 COMMISSION APPROVED RESOLUTION NO. 1984 RELATED TO ACQUISITION OF PROPERTY IN THE SAMPLE -EWING DEVELOPMENT AREA BY EMINENT DOMAIN. COMMISSION APPROVED RESOLUTION NO. 1986 APPROVING THE TRANSFER OF REAL PROPERTY TO THE CITY OF SOUTH BEND, INDIANA. (AMERICAN HOME DREAMS, INC.) South Bend Redevelopment Commission Rescheduled Regular Meeting —July 3, 2003 6. NEW BUSINESS E. Airport Economic Development Area (1) Filing of 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 and setting a Public Hearing for July 18, 2003 at 10:00 a.m. Upon a motion by Mr. Kahn, seconded by COMMISSION ACCEPTED FOR FILING RESOLUTION Mr. Blake and unanimously carried, the No. 1977 AND SET A PUBLIC HEARING ON RESOLUTION NO. 1977 FOR 10:00 A.M., JULY 18, Commission accepted for filing Resolution 2003 AT A REGULARLY SCHEDULED MEETING OF No. 1977 and set a public hearing on THE REDEVELOPMENT COMMISSION. Resolution No. 1977 for 10:00 a.m., July 18, 2003 at a regularly scheduled meeting of the Redevelopment Commission. 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. G. West Washington- Chapin Development Area There was no business in the West Washington- -THERE WAS NO BUSINESS IN THE WEST Chapin Development Area. WASHINGTON -CHAPIN DEVELOPMENT AREA. H. South Side Development Area There was no business in the South Side THERE WAS NO BUSINESS IN THE SOUTH SIDE Development Area. DEVELOPMENT AREA. I. Other There was no Other business. THERE WAS NO OTHER BUSINESS. 11 14 South Bend Redevelopment Commission Rescheduled Regular Meeting —July 3, 2003 7. PROGRESS REPORTS Mr. Rock advised that the Development Agreement between the City and Kite Construction was signed for the south side project related to Scottsdale Mall and thanked Mr. Schalliol for all his hard work. In addition, Mr. Rock noted the Agreement signed today with Rose Fuel & Materials, Inc. is a great start to the Oliver Industrial Park and thanked Mr. Laurent and Ms. Kolata for their hard work and commitment. Mr. Schalliol commended Ms. Greene for her dedicated efforts on both Development Agreements, and Mr. Hunt thanked the entire staff. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for July 18, 2003 at 10:00 a.m. P-Alua Lei 0 90101 31011 PROGRESS 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. Blake seconded the motion and the meeting was adjourned at 10:11 a.m. Robert W. Hunt, President bonald E. Inks, Direc or 12