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HomeMy WebLinkAbout07-19-02 Redevelopment Commission Minutese 1 14 t SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING July 19, 2002 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 Ms. M. Catherine Roemer Mr. Matt Kahn Ms. Cheryl Greene Redevelopment Staff: Mr. Donald Inks, Director Ms. Pamela Morris, Recording Secretary Mr. Owen Rock, Assistant Director Mr. Mike Beitzinger, Assistant Director Mr. Bob Case, Senior Economic Development Planner Mr. Robert Mathia, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Ms. Felicia Davis, Tax Abatement Specialist Mr. Marco Mariani, Senior Planner Others Present: Ms. Anne Bruneel, Baker & Daniels Mr. John Devereaux, Project Future Ms. Sheral Litell, CB Richard Ellis 2. APPROVAL OF MINUTES A. Commission approval of the Minutes of the Regular Meeting of June 21, 2002. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved the Minutes of the Regular Meeting of June 21, 2002. 3. APPROVAL OF CLAIMS 1 COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF .TUNE 21, 2002. v South Bend Redevelopment Commission Regular Meeting —July 19, 2002 Redevelopment Commission Claims submitted July 19, 2002 for approval. 212 CDBG COMMUNITY DEVELOPMENT Jennifer Hullinger $ 144.02 Insty- Prints 202.50 Print Shop 210.00 CA Studios 4,224.00 Photography Plus 1,180.00 Indiana Association of Cities and Towns 50.00 Travelmore 1,102.20 FedEx 98.11 Volume Services America 83.10 Bank One 60.00 324 FUND The Troyer Group, Inc. 18,288.00 Jerome E. Michaels, MAI 18,350.00 R.E. Pitts & Associates, Inc. 19,200.00 Kenny Outdoor Solutions 1,649.70 Meridian Title Corp. 1,050.00 ETNA Supply Company 413.70 Magic Carpet Turf Farms 252.50 Reith -Riley Construction Co., Inc. 2,772.00 Bob Frame Inc. 1,300.00 City Awning 2,489.00 Abonmarche Consultants of Indiana, LLC 3,350.00 Edges Lawn Care 145.00 Bamber L.L.C. 40,000.00 14 414 SAMPLE -EWING South Bend Water Works 134.66 CFH Landscape Service 3,515.00 Meridian Title Corp. 300.00 Niblock Excavating & Asphalt 63,496.48 Jonathan Baker 1,200.00 2 South Bend Redevelopment Commission Regular Meeting —July 19, 2002 420 SBCDA Edges Lawn Care 400.00 Lehman & Lehman 4,151.25 422 TIF WWDC Mathews Purucker Anella, Inc. 1,040.00 Lehman & Lehman 1,313.75 Edges Lawn Care 400.00 424 TIF SBCDA - BUILDING OPERATIONS CB Richard Ellis 1,977.39 Hill's True Value Hardware 31.93 AEP 302.48 NIPSCO 6.07 $ 194,882.84 Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Claims submitted July 19, 2002, and ordered the checks to be released. 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. 1896 approving an application for real property tax deduction for property located at 7701 Vorden Court in the Airport A 3 COMMISSION APPROVED THE CLAIMS SUBMITTED JULY 19, 2002, AND ORDERED THE CHECKS TO BE RELEASED. THERE WERE NO COMMUNICATIONS. THERE WAS NO OLD BUSINESS. South Bend Redevelopment Commission Regular Meeting —July 19, 2002 Economic Development Area. (TD 1996 Real Estate Trust) Ms. Davis gave the staff report on the project. Tech Data proposes to build, in two - phases, a 450,000 - 500,000 SF building on 30.4 acres of land in the Blackthorn West Business Park. Phase I will be approximately 300,000 SF. The estimated cost of the project is $12,000,000. The building will house Tech Data's new Midwest logistics center. The facility will serve their customers throughout the Midwest and supplement the service provided by their other logistic centers nationwide. Tech Data currently has a logistics center in South Bend which employs approximately 133 full -time and 27 temporary employees I representing an annual payroll of $4.5 million. Tech Data has decided to remain in South Bend rather than relocate to another city or state; therefore, these jobs will remain in South Bend. The company is projecting an increase of eight full -time employees in the next few years, representing new annual salaries of $222,000. The petitioner has been granted or associated with one previous tax abatement. The property is properly zoned for the proposed project. The property is located in the Airport Economic 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 does meet the IL 4 14 South Bend Redevelopment Commission Regular Meeting —July 19, 2002 qualifications for a ten year real property tax abatement. Based on a total project cost of $12,000,000 the cost of the tax abatement is as follows: Mr. John Devereaux of Project Future advised that the site selection process with Tech Data actually began in September 2000. Due to economic conditions at that time, Tech Data chose to delay the project and to extend their existing lease. In January 2002, Tech Data had expressed a strong interest in staying in South Bend, but had concerns involving logistics and how to best serve their customers. Other locations considered by Tech Data included Columbus, Ohio; Indianapolis, Indiana; and a suburb of Chicago, Illinois. Mr. Devereaux noted that Project Future worked with UPS and also presented to Tech Data a study indicating which area would best serve them. Tech Data decided to remain in South Bend. Upon a motion by Mr. Faccenda, seconded 5 COMMISSION APPROVED RESOLUTION NO. 1896 APPROVING AN APPLICATION FOR REAL Estimated taxes over 10 years Without $3,866,982 Abatement With 10 -year $1,952,826 abatement Estimated cost $1,914,156 of 10 -year abatement Mr. John Devereaux of Project Future advised that the site selection process with Tech Data actually began in September 2000. Due to economic conditions at that time, Tech Data chose to delay the project and to extend their existing lease. In January 2002, Tech Data had expressed a strong interest in staying in South Bend, but had concerns involving logistics and how to best serve their customers. Other locations considered by Tech Data included Columbus, Ohio; Indianapolis, Indiana; and a suburb of Chicago, Illinois. Mr. Devereaux noted that Project Future worked with UPS and also presented to Tech Data a study indicating which area would best serve them. Tech Data decided to remain in South Bend. Upon a motion by Mr. Faccenda, seconded 5 COMMISSION APPROVED RESOLUTION NO. 1896 APPROVING AN APPLICATION FOR REAL South Bend Redevelopment Commission Regular Meeting —July 19, 2002 by Ms. Roemer and unanimously carried, the Commission approved Resolution No. 1896 approving an application for real property tax deduction for property located at 7701 Vorden Court in the Airport Economic Development Area. (TD 1996 Real Estate Trust) (2) Commission approval requested for Resolution No.1897 approving an application for personal property tax deduction for property located at 2603 Foundation Drive in the Airport Economic Development Area. (Ely Chemical Co., LTD.) Ms. Davis gave the staff report on the project. Ely Chemical Company, based in the United Kingdom, is one of the world's leading manufacturers of Non - Destructive Testing (NDT) Materials. NDT products are used within a system of cleaning and developing materials to find surface defects that are generally undetectable by the naked eye. Ely's Indiana customer base includes Rolls- Royce, Honeywell, NSK, Caterpillar, and Bethlehem Steel and as such Northern Indiana is considered to be an ideal location for a manufacturing base. This project calls for the purchase of special equipment to be used in the design, development, mixing, storage, and distribution of NDT materials. The total cost of the project is estimated at $350,000. It is estimated that this project will create eight new, permanent, full -time jobs representing a new annual payroll of $200,000 (average of $25,000). The petitioner has not been granted any C 6 PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 7701 VORDEN COURT IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (TD 1996 REAL ESTATE TRUST) 14 South Bend Redevelopment Commission Regular Meeting —July 19, 2002 previous tax abatements. The property is properly zoned for the proposed project. The property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for personal property tax abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that the petitioner meets the qualifications for a five year personal property tax abatement. Based on a total equipment cost of $350,000 the cost of the tax abatement is as follows: Ms. Davis introduced Ms. Sheral Litell of CB Richard Ellis representing Ely Chemical Co., LTD. which is located in England. Ms. Litell reported that there was a lot of competition with Michigan and other sites related to this project. Ely Chemical has a company in Illinois which was also a considered site. They produce de -icer for airports and manufacturer gel used in sonograms. Ely Chemical recognizes the South Bend location as being second in the 7 Estimated taxes over 5 years Without $36,304 abatement With 5 -year $12,426 abatement Estimated $23,879 cost of 5 -year abatement Ms. Davis introduced Ms. Sheral Litell of CB Richard Ellis representing Ely Chemical Co., LTD. which is located in England. Ms. Litell reported that there was a lot of competition with Michigan and other sites related to this project. Ely Chemical has a company in Illinois which was also a considered site. They produce de -icer for airports and manufacturer gel used in sonograms. Ely Chemical recognizes the South Bend location as being second in the 7 South Bend Redevelopment Commission Regular Meeting —July 19, 2002 nation for over - the -road distribution and the fact that they work very closely with Honeywell also made this a prime location. They are not only conscious, but very familiar with distributing within the U.S. Ms. Litell noted that Ely Chemical is a very interesting, environmentally friendly company. Mr. Beitzinger reported that staff had worked with Don Fozo's office to make sure the Building Department did not have any concerns over this project. Mr. Fozo has reviewed the operation and has approved of the project. Staff has also worked with Jack Dillon in Environmental Services to make sure this project complies with all necessary requirements of that office. They are currently in the process of completing the IL paperwork to assure all requirements are met. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1897 approving an application for personal property tax deduction for property located at 2603 Foundation Drive in the Airport Economic Development Area. (Ely Chemical Co., LTD.) B. Housing (1) Commission approval requested for Modification Agreement for property located at 617 E. Haney in connection with the Affordable Loan Program. (Raymond Garcia, Sr. and Jimmie Lou Garcia) Mr. Inks reported that the Modification L 8 COMMISSION APPROVED RESOLUTION No. 1897 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2603 FOUNDATION DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (ELY CHEMICAL CO., LTD.) South Bend Redevelopment Commission Regular Meeting —July 19, 2002 Agreement reduces the monthly payment due by the Borrowers to the City of South Bend making it more affordable. The new monthly installment is $63.76. Upon a motion by Ms. Jones, seconded by Ms. Roemer and unanimously carried, the Commission approved the Modification Agreement for property located at 617 E. Haney in connection with the Affordable Loan Program. (Raymond Garcia, Sr. and Jimmie Lou Garcia) C. South Bend Central Development Area (1) Commission authorization requested to use the Wayne Street garage in the South Bend Central Development Area on Friday, September 20, 2002. (David Niezgodski) Mr. Inks requested that Item 6.C.1. be tabled. There were no objections and the Commission tabled Item 6.C.1. D. Sample -Ewing Development Area (1) Commission approval requested for Resolution No. 1898 a preliminary bond resolution of the South Bend Redevelopment Commission authorizing the issuance of bonds of the South Bend Redevelopment District for the purpose of raising money for redevelopment and economic development in the Sample - Ewing Development Area. (TJX Project) Ms. Anne Bruneel, Baker and Daniels, reported that preliminary bond Resolution No. 1898 will set the parameters for the bond issue. The maximum amount of the ILI 9 COMMISSION APPROVED THE MODIFICATION AGREEMENT FOR PROPERTY LOCATED AT 617 E. HANEY IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM. (RAYMOND GARCIA, SR. AND JIMMIE Lou GARCIA) COMMISSION TABLED ITEM 6.C.1. :4 South Bend Redevelopment Commission Regular Meeting —July 19, 2002 bonds is set at $9M, with an interest rate cap of 7% and a twenty -five year term. The structuring is proposed as a TIF revenue bond, payable secondly from COIT revenues, but ultimately by a tax backup. The bondholders will view the tax backup as the principal security on the bonds. Because of the tax backup, it will require approval by the former State Tax Board, now called the Department of Local Government Finance. Approval is scheduled for August 22nd. Upon a motion by Ms. Jones, seconded by Ms. Roemer and unanimously carried, the Commission approved Resolution No. 1898 a preliminary bond resolution authorizing the issuance of bonds of the South Bend Redevelopment District for the purpose of raising money for redevelopment and economic development in the Sample -Ewing Development Area. (2) Staff report on acquisition of property located in the Sample -Ewing Development Area. (Kovas, Thien and Sumiko properties) Mr. Williams reported that twenty Purchase Offers were sent to property owners in the Sample -Ewing Development Area. Seven of these properties are vacant lots and the owners accepted the offers as submitted. Warranty Deeds have been prepared, Disclosure Statements are finished and staff requests approval of the Quit Claim Deeds and authorization to close on the properties. Upon a motion by Mr. Faccenda, seconded by Ms. Roemer and unanimously carried, the Commission approved the Quit Claim Deeds and authorized staff to close on the 10 COMMISSION APPROVED RESOLUTION NO. 1898 A PRELIMINARY BOND RESOLUTION AUTHORIZING THE ISSUANCE OF BONDS OF THE SOUTH BEND REDEVELOPMENT DISTRICT FOR THE PURPOSE OF RAISING MONEY FOR REDEVELOPMENT AND ECONOMIC DEVELOPMENT IN THE SAMPLE - EWING DEVELOPMENT AREA. COMMISSION APPROVED THE QUIT CLAIM DEEDS AND AUTHORIZED STAFF TO CLOSE ON THE PROPERTIES. (KOVAS, THIEN AND SUMIKO PROPERTIES) 14 South Bend Redevelopment Commission Regular Meeting —July 19, 2002 properties. (Kovas, Thien and Sumiko properties) (3) Commission approval requested for Resolution No. 1899 approving the transfer of real property to the City of South Bend, Indiana. Mr. Inks reported that Resolution No. 1899 transfers the retention pond areas related to the TJX Project to the City of South Bend Board of Public Works. Upon a motion by Ms. Roemer, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1899 approving the transfer of real property to the City of South Bend, Indiana. (4) Commission approval requested for proposal for professional services in the Sample -Ewing Development Area. (Engineering services, Oliver Plow Works) Mr. Rock reported that two quotes were requested for engineering services at the Oliver Plow Works property. The proposals were solicited from Arsee Engineers, Inc. and Ken Herceg & Associates, Inc. Both are respected firms in the engineering field. The Arsee proposal is in the amount of $10,800 with a contingent fee of $3,000 for use of a 150 ton crane to closely examine the smokestack. The Herceg proposal is in the amount of $8,200. Mr. Rock requested the Commission approve the lowest proposal after staff approaches Herceg & Associates to receive a second quote on the additional services that 11 COMMISSION APPROVED RESOLUTION NO. 1 899 APPROVING THE TRANSFER OF REAL PROPERTY TO THE CITY OF SOUTH BEND, INDIANA. South Bend Redevelopment Commission Regular Meeting —July 19, 2002 were included in the Arsee proposal (crane and basket to observe the stack). Ms. Greene advised that the two quotes received provided somewhat different services and there may have been a misunderstanding on the part of either party that now merits clarification. In order not to slow activity on the project, the Commission could authorize staff to contact the two bidders, request clarification of their bids and, subject to resubmission, approve the lowest proposal. Upon a motion by Ms. Roemer, seconded by Mr. Faccenda and unanimously carried, the Commission authorized the staff to clarify the proposals and act on the lowest priced bid for professional services in the Sample - Ewing Development Area. (Engineering services, Oliver Plow Works) (5) Commission approval requested for submission of application to the Indiana Department of Environmental Management's Voluntary Remediation Program. (Studebaker Area A) Mr. Rock noted that Studebaker Area A includes the South Bend Stamping Plant. The application to the Voluntary Remediation Program will begin the process with the state that will eventually lead to a Covenant not to Sue relating to environmental conditions on the properties. The covenant would eliminate future environmental liability from existing conditions from being passed on to future property owners. Since the land in Area A is slated to be sold and developed by private companies after it has been cleared by the 12 COMMISSION AUTHORIZED THE STAFF TO CLARIFY THE PROPOSALS AND ACT ON THE LOWEST PRICED BID FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA. (ENGINEERING SERVICES, OLIVER PLOW WORKS) South Bend Redevelopment Commission Regular Meeting —July 19, 2002 Commission, this program fits well with the existing goals for the site. Following acceptance of the VRP application for Area A, the Indiana Department of Environmental Management will forward a Voluntary Remediation Agreement to the Commission for execution. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission authorized the submission of an application to the Indiana Department of Environmental Management's Voluntary Remediation Program. (Studebaker Area A) (6) Commission approval requested for Resolution No. 1900 approving the execution of a quit claim deed and other related documents relating to the TJX Redevelopment Project. Ms. Greene advised that staff wished to move towards closing as quickly as possible on the TJX Project. Because of the Commission schedule of meeting only on the first and third Fridays of each month, the potential exists that closing could occur before the next Commission meeting. There are several documents that are in the process of being finalized that will be necessary at closing. Resolution No. 1900 approves the documents subject to final review by the City Legal Department. Once the Legal Department has deemed the documents suitable for closing, the necessary signatures will be obtained without a Special Meeting being scheduled. The documents include the Quit Claim Deed to TJX, Grant of Easement for Environmental Remediation, Demolition and Construction Easement Agreement, and a Memorandum of Contract for Sale of Land 13 COMMISSION AUTHORIZED THE SUBMISSION OF AN APPLICATION TO THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT'S VOLUNTARY REMEDIATION PROGRAM. (STUDEBMER AREA A) r A 14 South Bend Redevelopment Commission Regular Meeting —July 19, 2002 for Private Development which, referencing the size difference, will be recorded in lieu of the actual contract. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1900 approving the execution of a quit claim deed and other related documents relating to the TJX Redevelopment Project. (7) Commission approval requested to permit TJX to begin construction activities in anticipation of closing on the real estate. Ms. Greene explained that TJX anticipates opening their facility by July 2003 and has requested access to the property for construction start-up. The work that was contracted by the City through its agreement with TJX is complete. There are some minor issues that need to be finalized; however, the City is moving expeditiously toward closing. Ms. Greene recommended that the Commission obtain from TJX an indemnification agreement and an affirmative statement of intent to close, should they allow TJX to begin construction on the site before closing. COMMISSION APPROVED RESOLUTION NO. 1900 APPROVING THE EXECUTION OF A QUIT CLAIM DEED AND OTHER RELATED DOCUMENTS RELATING TO THE TJX REDEVELOPMENT PROJECT. Upon a motion by Ms. Roemer, seconded by COMMISSION AUTHORIZED TJX TO BEGIN Mr. Faccenda and unanimously carried, the CONSTRUCTION ACTIVITIES SUBJECT TO Commission authorized TJX to begin SUBMISSION OF AN INDEMNIFICATION construction activities subject to submission AGREEMENT. of an indemnification agreement. E. Airport Economic Development Area (1) Commission approval requested for proposal for professional services in the Airport Economic Development Area. 14 South Bend Redevelopment Commission Regular Meeting —July 19, 2002 (Demolition work, 52720 Olive Rd.) Mr. Williams reported that three quotes were received for the demolition of 52720 Olive Rd. The three proposals are as follows: Bradberry Bros Excavating $12,070 Ritschard Bros, Inc. $12,533 Warner & Sons $ 8,670 Staff recommends accepting the proposal from Warner & Sons. Mr. Williams noted that Warner & Sons fully complied with the bid specifications, including insurance requirements. Upon a motion by Ms. Roemer, seconded by Mr. Faccenda and unanimously carried, the Commission approved the proposal from Warner & Sons in the Airport Economic Development Area. (Demolition work, 52720 Olive Rd.) 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. Other There was no Other business. 7. PROGRESS REPORTS Mr. Rock advised that Captain O'Haver, South Bend Fire Department, wished to thank the IL Commission for the use of the house on Olive Road 15 COMMISSION APPROVED THE PROPOSAL FROM WARNER & SONS IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (DEMOLITION WORK, 52720 OLIVE RD.) THERE WAS NO BUSINESS IN THE SOUTH BEND MEDICAL SERVICES DISTRICT. THERE WAS NO BUSINESS IN THE WEST WASHINGTON -CHAPIN DEVELOPMENT AREA. THERE WAS NO OTHER BUSINESS. South Bend Redevelopment Commission Regular Meeting —July 19, 2002 as a training facility. It significantly increased their training efforts and the Fire Department is very grateful. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for August 2, 2002 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Ms. Jones made a motion that the meeting be adjourned. Ms. Roemer seconded the motion and the meeting was adjourned at 10:32 a.m. Robert W. Hunt, President 3 16 NEXT COMMISSION MEETING ADJOURNMENT Do ald E. Inks, Director