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Home My WebLink About05-02-03 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING May 2, 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. Matt Kahn Mr. Hardie Blake, Jr. Member Absent: Mr. Philip Faccenda, Secretary Legal Counsel: Ms. Cheryl Greene Redevelopment Staff: Mr. Owen Rock, Assistant Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. Robert Mathia, Economic Development Specialist Mr. Robert Case, Economic Development Specialist Mr. Michael Beitzinger, Economic Development Specialist Mrs. Ann Kolata, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Ms. Jennifer Hughes, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Others Present Mr. John Mintun, Gibbs Wire and Steel Mr. Dennis Ziolkowski, Hill Truck Sales Mr. David Hill, Hill Truck Sales Mr. John Firth, Attorney, Executive Dining Mr. Jay Harwood, Rose Fuel and Materials Mr. Tom Walz, Attorney, Total Enterprises Mr. James Butler, Underground Pipe and Valve Ms. Pam Paluszewski, Legal Department 2. APPROVAL OF MINUTES A. Commission approval of the Minutes of the Regular Meeting of March 7, 2003. Ce , 14 L South Bend Redevelopment Commission Regular Meeting —May 2, 2003 A. APPROVAL OF MINUTES (CONT.) March 7, 2003 continued.... Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the Minutes of the Regular Meeting of March 7, 2003. B. Commission approval of the Minutes of the Regular Meeting of March 21, 2003. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the Minutes of the Regular Meeting of March 21, 2003. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF MARCH 7, 2003. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF MARCH 21, 2003. Redevelopment Commission Claims submitted May 2, 2003 for approval. 212 CDBG COMMUNITY DEVELOPMENT Flint Complete Personnel Services Makielski, Inc. South Bend Tribune Tri County News Boise Cascade Owen Rock Federal Express 324 FUND Danch, Hamer & Associates, Inc. Troyer Group, Inc. United Beverage Co. of South Bend Owners' Association at Blackthorn, Inc. Douglas Landscape, Inc. DLZ Young's Excavating, Inc. Lang, Feeney & Associates, Inc. Jerome E. Michaels, MAI R.E. Pitts & Associates 153.19 78.00 154.66 55.74 111.92 250.00 107.50 1,350.00 14,974.00 33,000.00 43,558.02 69,498.99 900.00 134,250.15 400.00 4,500.00 3,750.00 South Bend Redevelopment Commission IL Regular Meeting —May 2, 2003 3. CLAIMS (CONT.) 414 SAMPLE -EWING Jonathan E. Baker Plews Shadley Racher & Braun CB Richard Ellis South Bend Grauvogel & Associates Erie Landmark Company Danch, Hamer & Associates, Inc. Warner & Sons Lang, Feeney & Associates, Inc. Meridian Title Corporation David Waszak, Appraisals, Inc. R.E. Pitts & Associates Abonmarche Consultants Susannah Bueno Translations 420 SBCDA Lehman & Lehman ILI Cressy & Everett Management, Co. CB Richard Ellis South Bend Warner & Sons 427 SAMPLE/EWING - CAPITAL FUND MTE Truck & Trailer Service 619 BLACKTHORN Meadowbrook Golf Group, Inc. Upon a motion by Mr. Blake, seconded by Mr. Kahn and unanimously carried, the Commission approved the Claims submitted May 2, 2003, and ordered the checks to be released. t, 100.00 273.80 250.00 720.00 133.80 21,140.00 17,450.00 675.00 1,200.00 1,900.00 2,000.00 900.00 385.00 11,081.00 1,605.00 69.92 6,340.00 12,000.00 28,000.00 $ 413.315.69 COMMISSION APPROVED THE CLAIMS SUBMITTED MAY 2, 2003, AND ORDERED THE CHECKS TO BE RELEASED. South Bend Redevelopment Commission Regular Meeting —May 2, 2003 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. 1974 approving an application for real property tax deduction for property located at 121 W. LaSalle Avenue in the South Bend Central Development Area. ( Bravokilo, Inc.) Mr. Beitzinger gave the staff report on the tax abatement. Bravokilo, Inc. is in the process of purchasing the property at 121 W. LaSalle Avenue. The site is currently a Burger King restaurant; however the building is now 20 years old and in need of renovation. Bravokilo is proposing to tear down the existing building and construct a new state -of- the -art Burger King restaurant on the site. The company believes that the downtown South Bend location is a very important location, and the new Burger King building will enhance the brand's image throughout the trade area. The project cost is estimated at $842,000. Bravokilo has indicated in the application that no new jobs will result from this project; however, the company currently employs nine existing 4 THERE WERE NO COMMUNICATIONS. THERE WAS NO OLD BUSINESS. South Bend Redevelopment Commission Regular Meeting —May 2, 2003 6. NEW BUSINESS A. Tax Abatements (1) continued... permanent full -time and 21 existing permanent part-time jobs which will be retained. These positions represent an annual payroll of $288,027. Bravokilo has not been granted any previous tax abatements. The property is properly zoned for the proposed project. The property is located in an Economic Development Target Area which is a requirement for retail establishments seeking real property tax abatement. The property is located in the South Bend Central 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. A review of the Tax Abatement Ordinance finds that the petitioner meets the qualifications for a three (3) year real property abatement. Total project cost: $842,000. L5 Estimated taxes over 3 yrs Without abatement $90,914 With 3 -yr abatement $18,000 Estimated cost of 3 -yr abatement $36,000 L5 South Bend Redevelopment Commission Regular Meeting —May 2, 2003 6. NEW BUSINESS A. Tax Abatements (1) continued... Mr. John Firth, Executive Counsel for Executive Dining, noted that this Burger King was the first one built in this community. It will be celebrating its 201h anniversary this year. It needs to be rebuilt, as it is the centerpiece of the company. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1974 approving an application for real property tax deduction for property located at 121 W. LaSalle Avenue in the South Bend L Central Development Area. (Bravokilo, Inc.) (2) Commission approval requested for Resolution No. 1975 approving an application for personal property tax deduction for property located at 3751 Olive Road in the Airport Economic Development Area. (Gibbs Wire and Steel Company, Inc.) Mr. Beitzinger gave the staff report on the tax abatement. Gibbs Wire and Steel Company is a manufacturer and fabricator of flat steel strip metal, and is a distributer of stainless steel, carbon and music wire. Gibbs operates six service center warehouses located throughout the United States and is headquartered in Southington, Connecticut. Locally, they operate out of a 167,000 sft facility on west Olive Road, which was built in 2001. Gibbs South Bend is growing again and will be purchasing a G6 COMMISSION APPROVED RESOLUTION NO. 1974 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 121 W. LASALLE AVENUE IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (BRAVOKILO, INC.) South Bend Redevelopment Commission Regular Meeting —May 2, 2003 6. NEW BUSINESS A. Tax Abatements (2) continued... new 20 strand slitter /oscillator, a 4 strand edger /oscillator and a Gorbel crane. The total cost of the new equipment is estimated at $1,000,000. Per the petition, it is estimated that this project will create four new, permanent, full - time jobs representing a new annual payroll of $200,000. The project will also maintain forty-three existing permanent full time jobs representing an annual payroll of $1,800,000 (an average of over $41,800). Gibbs Wire was granted a previous (10 -year) ILI tax abatement in November 2000. They are in compliance with the reporting requirements for that abatement. The property is properly zoned for the proposed project. The property is located in the Airport Economic Development Area, which is a Tax Increment 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 (5) year personal property tax abatement under the tax abatement ordinance. Total project cost: $1,000,000. IL lei South Bend Redevelopment Commission Regular Meeting —May 2, 2003 6. NEW BUSINESS A. Tax Abatements (2) continued... Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1975 approving an application for personal property tax deduction for property located at 3751 Olive Road in the Airport Economic Development Area. (Gibbs Wire and Steel Company, Inc.) (3) Commission approval requested for Resolution No. 1976 approving an application for personal property tax deduction for property located at 3333 W. Lathrop Street in the Airport Economic Development Area. (Total Enterprises, Ltd.) Total Enterprises manufactures tooling primarily for use in the automotive and office furniture industries. Such products as office and automotive seats, arm rests, head rests, fire walls, floor pans and head liners are made from their tools. The company COMMISSION APPROVED RESOLUTION NO. 1975 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3751 OLIVE ROAD IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (GIBBS WIRE AND STEEL COMPANY, INC.) Estimated taxes over 5 yrs Without abatement $170,027 With 5 -yr abatement $54,858 Estimated cost of 5 -yr abatement $115,169 Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1975 approving an application for personal property tax deduction for property located at 3751 Olive Road in the Airport Economic Development Area. (Gibbs Wire and Steel Company, Inc.) (3) Commission approval requested for Resolution No. 1976 approving an application for personal property tax deduction for property located at 3333 W. Lathrop Street in the Airport Economic Development Area. (Total Enterprises, Ltd.) Total Enterprises manufactures tooling primarily for use in the automotive and office furniture industries. Such products as office and automotive seats, arm rests, head rests, fire walls, floor pans and head liners are made from their tools. The company COMMISSION APPROVED RESOLUTION NO. 1975 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3751 OLIVE ROAD IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (GIBBS WIRE AND STEEL COMPANY, INC.) South Bend Redevelopment Commission Regular Meeting —May 2, 2003 6. NEW BUSINESS A. Tax Abatements (3) continued... needs to purchase new foundry, pattern shop and engineering machinery and equipment in order to produce tooling more competitively. The total cost for the new machinery and equipment is estimated at $350,000. Per the petition, it is estimated that this project will create four new, permanent, full - time jobs representing a new annual payroll of $187,200. The project will also maintain forty -four existing permanent full time jobs representing an annual payroll of $1,400,000 (an average of over $31,800). A review of the tax abatements previously granted, finds that the petitioner has been granted three previous personal property (5- year) tax abatements in September 1996, March 1998 and June 2000. The petitioner is in compliance with the reporting requirements for the previous abatements. The property is properly zoned for the proposed project. The property is located in the Airport Economic Development Area, which is a Tax Increment Allocation Area; therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. The project meets the qualifications for a five -year personal property tax abatement under the tax abatement ordinance. Total project cost: $350,000. L South Bend Redevelopment Commission Regular Meeting —May 2, 2003 6. NEW BUSINESS A. Tax Abatements (3) continued... Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 1976 approving an application for personal property tax deduction for property located at 3333 W. Lathrop Street in the Airport Economic Development Area. (Total Enterprises, Ltd.) B. Housing (1) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Program for property located at 1110 N. College. (Nellie Ruth Morgan & Donna Sharon Morgan) Mr. Rock noted that this loan and grant was approved by the Commission on February 21, 2003. However, Nellie Morgan signed a Quit Claim Deed to put her house into her and her daughter's name. She was concerned that in the event of her death, her 10 COMMISSION APPROVED RESOLUTION NO. 1976 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3333 W. LATHROP STREET IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (TOTAL ENTERPRISES, LTD.) Estimated taxes over 5 yrs Without abatement $59,509 With 5 -yr abatement $19,200 Estimated cost of 5 -yr abatement $40,309 Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 1976 approving an application for personal property tax deduction for property located at 3333 W. Lathrop Street in the Airport Economic Development Area. (Total Enterprises, Ltd.) B. Housing (1) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Program for property located at 1110 N. College. (Nellie Ruth Morgan & Donna Sharon Morgan) Mr. Rock noted that this loan and grant was approved by the Commission on February 21, 2003. However, Nellie Morgan signed a Quit Claim Deed to put her house into her and her daughter's name. She was concerned that in the event of her death, her 10 COMMISSION APPROVED RESOLUTION NO. 1976 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3333 W. LATHROP STREET IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (TOTAL ENTERPRISES, LTD.) South Bend Redevelopment Commission Regular Meeting —May 2, 2003 6. NEW BUSINESS B. Housing (1) continued... disabled daughter would be displaced from their home. Therefore, the loan and grant need to be re- approved in both of their names. The loan is $17,900 at 0% interest, due upon sale of the property. The grant is $7,500. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried the Commission approved the Loan and Grant in connection with the South Bend Home Improvement Program for property located at 1110 N. College. (Nellie Ruth Morgan & Donna Sharon Morgan). C. South Bend Central Development Area (1) Commission approval requested for Resolution No. 1972 related to acquisition of property in the South Bend Central Development Area by eminent domain. (Blessings Music) Mr. Rock explained that Resolution No. 1972 sets the offering price for Blessings Music Co. at $85,000 and authorizes a purchase offer to be sent with the option to use eminent domain if a negotiated settlement cannot be reached. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 1972 related to acquisition of property in the South Bend Central Development Area by ILI eminent domain. (Blessings Music) 11 COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 1 110 N. COLLEGE. (NELLIE RUTH MORGAN & DONNA SHARON MORGAN). COMMISSION APPROVED RESOLUTION NO. 1972 RELATED TO ACQUISITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA BY EMINENT DOMAIN. (BLESSINGS MUSIC) South Bend Redevelopment Commission Regular Meeting —May 2, 2003 6. NEW BUSINESS C. South Bend Central Development Area (continued...) (2) Filing of Resolution No. 1973 amending the South Bend Central Development Area Development Plan and setting a Public Hearing for May 16, 2003 at 10:00 a.m. (Main/Western Project) Mr. Rock asked that item 6.C.(2) be tabled. There was no objection and the item was tabled. (3) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Appraisal services, Main/Western Project) Mr. Rock asked that item 6.C.(3) be tabled. There was no objection and the item was tabled. (4) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Title Searches, Main/Western Project) Mr. Williams explained that the staff solicited proposals from title companies to perform title searches on the property that contains Blessings Music Co., the vacant lot north of Blessings, and the parking lot south of Blessings. The estimated cost is $100 from Meridian Title Company. 12 ITEM 6.C.(2) WAS TABLED. ITEM 6.C.(3) WAS TABLED. South Bend Redevelopment Commission Regular Meeting —May 2, 2003 6. NEW BUSINESS C. South Bend Central Development Area (4) continued... Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the request for professional services in the South Bend Central Development Area and and authorized staff to retain Meridian Title Company based on the scope of services and fees proposed. (5) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Survey work, Main/Western Project) ILI Mr. Rock asked that Item 6.C.(5) be tabled. There was no objection and the item was tabled. (6) Commission approval requested for amendment to proposal for professional services with Danch, Harner & Associates dated January 17, 2003. (Survey work, Chocolate Cafe/Hall of Fame site) Mr. Mathia noted that on January 17 the Redevelopment Commission approved a cost quote for professional services from Danch, Hamer & Associates to complete a boundary survey for the Hall of Fame and the Chocolate Cafe and to prepare paperwork and drawings for a subdivision replat. The replat will permit construction of an addition to the Chocolate Cafe on property currently owned by the Hall of Fame. The Commission approved the quote 13 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND AND AUTHORIZED STAFF TO RETAIN MERIDIAN TITLE COMPANY BASED ON THE SCOPE OF SERVICES AND FEES PROPOSED. ITEM 6.C.(5) WAS TABLED. South Bend Redevelopment Commission Regular Meeting —May 2, 2003 6. NEW BUSINESS C. South Bend Central Development Area (6) continued... and the work for an amount not to exceed $3,500. In order to complete that work it became necessary to review and better define the site plan and footprint for the Chocolate Cafe addition. Danch, Hamer is assisting with this effort by preparing concept sketches for the proposed addition and attending meetings with Commission staff and representative for the additional work. Staff is requesting that the Commission approve an additional $750 for the contract with Danch, Hamer & Associates. With those funds the new total for the contract will be a not -to- exceed IL amount of $4,250. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the amendment to proposal for professional services with Danch, Hamer & Associates dated January 17, 2003. (Survey work, Chocolate Cafe/Hall of Fame site) (7) Commission approval requested for Letter Proposal from The Troyer Group, Inc. to conduct a Charette. (Avon Theater) Mr. Mathia explained that both the St. Joseph County Library and the South Bend Civic Theater have expressed interest in developing the area around the old Avon Theater. In order to assure that development occurs in a coordinated fashion it was 14 COMMISSION APPROVED THE AMENDMENT TO PROPOSAL FOR PROFESSIONAL SERVICES WITH DANCH, HARNER & ASSOCIATES DATED JANUARY 17, 2003. (SURVEY WORK, CHOCOLATE CAFE /HALL OF FAME SITE) South Bend Redevelopment Commission Regular Meeting —May 2, 2003 6. NEW BUSINESS C. South Bend Central Development Area (7) continued... proposed that a charette be held with the Library, the Civic Theater, the City of South Bend, and Downtown South Bend Inc. Walker Parking Consultants will also attend the charette, because parking is critical to all parties. The Troyer Group has submitted a proposal to prepare for and conduct a half - day charette and develop a final report based on the discussion and conclusions reached at the charette at a cost not to exceed $2,900. The staff recommends accepting the proposal. Upon a motion by Mr. Kahn, seconded by ,+ Ms. Jones and unanimously carried, the Commission approved the request for professional services and authorized staff to retain The Troyer Group based on the scope of services and fees proposed. (8) Commission action on bid received for property located at Main Street and Jefferson Blvd. in the South Bend Central Development Area. (Jefferson Main Associates, LLC) Mr. Mathia noted that April 4 was the closing date for offers to be received on the property located on the southwest corner of Main Street and Jefferson Blvd. On that date one offer was received from Jefferson Main Associates, LLC, a firm associated with Browning Investments of Indianapolis. During review of the offer staff concluded that it was non - responsive. The bid (10�1 15 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES AND AUTHORIZED STAFF TO RETAIN THE TROYER GROUP BASED ON THE SCOPE OF SERVICES AND FEES PROPOSED. South Bend Redevelopment Commission Regular Meeting —May 2, 2003 L 6. NEW BUSINESS C. South Bend Central Development Area (8) continued... specifications required a minimum offer of $263,000 for the property. Jefferson Main Associates offered $0.00 as its purchase price and asked for a very large contribution to the project by the City. In all other respects the bid met the requirements. The proposed six -story, 107,080 sft building would make a significant contribution to the overall development of the downtown. Staff recommends rejecting the bid and returning the 10% performance guaranty because it did not meet the offering price and requested significant investment by the City. Staff also recommends that, due to the offer's overall merit, the Redevelopment Commission authorize staff to negotiate with Jefferson Main Associates, LLC in order to more fully develop a project concept and budget which would be submitted at a later date for the Commission's review and approval. Ms. Greene noted that I.C. 36- 7 -14 -22 governing the public sale of property by the Redevelopment Commission states that the Commission may reject any bids, or it may award to the highest and best bidder. In deciding whether to award, the Commission may consider the size and character of proposed improvements, the bidder's plans and ability to improve the property with reasonable progress, whether the property will be sold or rented when improved, the bidder's proposed sale or rental price, their compliance with the bidding procedures, and L16 South Bend Redevelopment Commission Regular Meeting —May 2, 2003 6. NEW BUSINESS C. South Bend Central Development Area (8) continued... factors that will assure the Commission that the sale, if made, will further the execution of the redevelopment plan for the area. In the event that the Commission does choose to reject a bid, then for a period of thirty days after the opening of written offer, there cannot be any sale or lease made at a price less than the offering price. After the thirty-day period the staff may negotiate a price less than the offering price. Upon a motion by Mr. Kahn, seconded by COMMISSION REJECTED THE BID RECEIVED Ms. Jones and unanimously approved, the APRIL 4, 2003 FROM JEFFERSON MAIN Commission rejected the bid received April ASSOCIATES, LLC FOR LOT 260A IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. 4, 2003 from Jefferson Main Associates, LLC for Lot 260A in the South Bend Central Development Area. D. Sample -Ewing Development Area (1) Receipt and opening of bids in connection with property located at 533 S. Chapin Street in the Sample -Ewing Development Area. (Oliver Industrial Park) Mr. Laurent reminded the Commission that the offering was not for any certain parcel, but asked the bidders to outline what property they were interested in. The value of the land depends on its size and whether it fronted on Chapin Street. Mr. Rock noted that two bids were received. One was from Hill Truck Sales Inc. for .96 acres. The bid was complete and included a I+ performance guaranty in the amount of $2,210. 17 RECEIPT OF BIDS FOR PROPERTY LOCATED AT 533 S. CHAPIN STREET IN THE SAMPLE -EWING DEVELOPMENT AREA (OLIVER INDUSTRIAL PARK) South Bend Redevelopment Commission Regular Meeting —May 2, 2003 6. NEW BUSINESS D. Sample -Ewing Development Area (1) continued... A second bid was from Rose Fuel and Materials for a 5.1 acre lot which includes the boiler house. The bid was complete and included a performance guarantee in the amount of $12,500. Underground Pipe and Valve Inc. also submitted a letter indicating its interest in property at that site and wanting to make that interest known. As the 1100 Corporation Underground Pipe and Valve owns the former Studebaker Foundry property at 1100 Prairie Ave. which is ILI approximately 20 acres. Any offer they would make for the 533 S. Chapin Street property would be contingent upon the City purchasing its 1100 Prairie Avenue property. The letter was signed by James Butler, President. The bidders were offered an opportunity to outline their proposed projects. Mr. Ziolkowski spoke for Hill Truck Sales. Hill Truck Sales has been in business since 1962 and in its location at 1011 W. Sample St. since 1967. Their present site is 3.76 acres of property. The property they bid on is north of their existing location. They would use the property for parking and storage until such time as they could add on to their building. They are also in discussions with Raitt Corporation to acquire some additional land to the east for entrance and egress. Without these two ILI 18 South Bend Redevelopment Commission Regular Meeting —May 2, 2003 6. NEW BUSINESS D. Sample -Ewing Development Area (1) continued... parcels they would be unable to expand at their present location. They would like to remain in the City of South Bend. Jay Harwood noted that Rose Fuel is running out of room for expansion at its current location. Also, their showroom was built in 1940 and they want to build a new, modern one at the proposed Oliver site. The portion of the Oliver property they propose to purchase includes the boiler house which they would renovate into a showroom and corporate office. They would also construct IL a 7,500 sft warehouse. They anticipate the project to cost approximately $1,300,000. Their proposal requests the City to put some money into improvements to the exterior of the boiler house. Mr. Harwood showed the Commission a site plan and rendering of the project. The warehouse would be a new metal building with masonry covering all four sides. In the boilerhouse which is three stories wide open, he would build an exterior of a house for their showroom and offices. (2) Commission action on bids received for property located at 533 S. Chapin Street in the Sample -Ewing Development Area. (Oliver Industrial Park) Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission referred the bids to staff for review and recommendation. 19 COMMISSION REFERRED THE BIDS TO STAFF FOR REVIEW AND RECOMMENDATION. South Bend Redevelopment Commission Regular Meeting —May 2, 2003 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (1) Commission approval requested for Contract for Sale of Land for Private Development between the South Bend Redevelopment Commission and Storion Group, LLC. (FAA building) Mr. Rock reported that the Contract for Sale of Land was reviewed and approved by the City Legal Department. The property is one half an acre on which the Storion Group, LLC plans to build a 10,800 sq ft building in the Blackthorn Corporate Office Park. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the Contract for Sale of Land for Private Development between the South Bend Redevelopment Commission and Storion Group, LLC. (FAA building) (2) Commission authorization requested to send letter of intent to purchase property adjacent to the Airport Economic Development Area, contingent on annexation and subsequent inclusion in the Airport Economic Development Area. (24505 Cleveland Road) Ms. Greene reported that the property is owned by Mr. and Mrs. Ernest Mahler and is currently on the market for sale through a real estate agency. The property is not located within the city limits of the City of South Bend, nor located within the Airport Economic Development Area which is the closest development area under the Commission's jurisdiction. Therefore, this 20 COMMISSION APPROVED THE CONTRACT FOR SALE OF LAND FOR PRIVATE DEVELOPMENT BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND STORION GROUP, LLC. (FAA BUILDING) South Bend Redevelopment Commission Regular Meeting —May 2, 2003 6. NEW BUSINESS E. Airport Economic Development Area (2) continued... letter suggests that the acquisition of the property by the Commission, if approved, is contingent upon the property owner voluntarily annexing the property into the City; then after the annexation process is complete, the property owner would not remonstrate against inclusion of the property within the Airport Economic Development Area. The property owner has asked for a contingency in the event that the Commission does not follow through on the purchaseMay 19, 2003 —the Commission would agree to support de- annexation of the IL property and return the property to its current status. Ms. Greene has prepared a letter to be signed and mailed by Mr. Schalliol, the planner working with the Mahler's regarding the property, that will be mailed today with the Commission's approval. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission authorized staff to send a letter of intent to purchase property adjacent to the Airport Economic Development Area, contingent on annexation and subsequent inclusion in the Airport Economic Development Area. (24505 Cleveland Road) (3) Commission approval requested for proposal for professional services in the Airport Economic Development Area. (NIPSCO /gas service lines, Super 8 Motel) 21 COMMISSION AUTHORIZED THE REQUEST TO SEND LETTER OF INTENT TO PURCHASE PROPERTY ADJACENT TO THE AIRPORT ECONOMIC DEVELOPMENT AREA, CONTINGENT ON ANNEXATION AND SUBSEQUENT INCLUSION IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (24505 CLEVELAND ROAD) South Bend Redevelopment Commission Regular Meeting —May 2, 2003 6. NEW BUSINESS E. Airport Economic Development Area (3) continued... Mr. Case reported that the request is for the installation of gas service lines within the Park One Northwest First Replat. The proposed work is for the extension of approximately 400 linear feet of gas lines down Ameritech Drive South. This service is required for the construction of a new Super 8 motel. The cost associated with the completion of this project is $2,525. Once NIPSCO receives an amount equal to 36 times the estimated monthly revenue of the customers connected to the new utility line, the cost to construct the line will be IL reimbursed to the City. NIPSCO has estimated that it will take three (3) years for the City to receive a full reimbursement. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for professional services in the Airport Economic Development Area. ( NIPSCO, gas service lines, Super 8 Motel) 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. (Mo� 22 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (NIPSCO, GAS SERVICE LINES, SUPER 8 MOTEL) 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 —May 2, 2003 6. NEW BUSINESS (CONT.) H. South Side Development Area There was no business in the South Side Development Area. I. Other There was no Other business. 7. PROGRESS REPORTS There were no Progress Reports. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for May 16, 2003 at 10:00 a.m. IL 9. ADJOURNMENT THERE WAS NO BUSINESS IN THE SOUTH SIDE DEVELOPMENT AREA. THERE WAS NO OTHER BUSINESS. THERE WERE NO PROGRESS REPORTS. 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. Ms. Jones seconded the motion and the meeting was adjourned at 10:42 a.m. 1� Robert W. Hunt, President , 23 4 L 4 LZ'� Z, -, Donald E. Inks, Director