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Home My WebLink About06-07-02 Redevelopment Commission MinutesG 14 1 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING June 7, 2002 10:00 a.m. Presiding: Marcia Jones, Vice President 1. ROLL CALL Members Present: Member Absent: Legal Counsel: 227 West Jefferson Boulevard South Bend, Indiana Ms. Marcia Jones, Vice - President Mr. Philip J. Faccenda, Secretary Mr. Matt Kahn Ms. M. Catherine Roemer Mr. Robert Hunt, President Ms. Cheryl Greene Redevelopment Staff. Mr. Donald Inks, Director Ms. Pamela Morris, Recording Secretary Mr. Mike Beitzinger, Assistant Director Mr. Bill Schalliol, Economic Development Planner Mr. Robert Mathia, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Ms. Felicia Davis, Tax Abatement Specialist Others Present: Pam Paluszewski, Legal Department David Daftary, Legal Department Sue Smith, Deluxe Sheet Metal James Van Houten, MTE Truck & Trailer Service John Ford, Jones Obenchain, LLP Steve Ellison, F M Stone Commercial 2. APPROVAL OF MINUTES A. Commission approval of the Minutes of the Regular Meeting of May 17, 2002. Upon a motion by Mr. Kahn, seconded by Ms. Roemer and unanimously carried, the Commission approved the Minutes of the Regular Meeting of May 17, 2002. 1 COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF MAY 17, 2002. South Bend Redevelopment Commission Regular Meeting —June 7, 2002 (0� 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted June 7, 2002 for approval. 212 CDBG COMMUNITY DEVELOPMENT CA Studios $ 375.00 Petty Cash 78.00 Federal Express 43.65 324 FUND Edges Lawn Care 205.00 Bamber L.L.C. 60,000.00 Woodwind & Brasswind 10,000.00 414 SEDA Meridian Title Corp 17,000.00 Jonathan Baker 800.00 420 SBCDA Wells Fargo Bank 950.00 Jerome E. Michaels 600.00 Grauvogel & Associates 1,197.50 Appraisal Specialists, Inc. 2,100.00 424 TIF SBCDA- BUILDING OPERATIONS NIPSCO 6.07 CB Richard Ellis 350.12 $ 93,355.22 Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the Claims submitted June 7, 2002, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. c; 2 COMMISSION APPROVED THE CLAIMS SUBMITTED JUNE 7, 2002, AND ORDERED THE CHECKS TO BE RELEASED. THERE WERE NO COMMUNICATIONS. South Bend Redevelopment Commission Regular Meeting —June 7, 2002 A 5. OLD BUSINESS A. Airport Economic Development Area (1) Staff report on disposition of property in the Airport Economic Development Area. (Lots 9,10,11 in the U.S. 31 Industrial Park) Mr. Schalliol reported that there are several issues on the agenda which are related to the MTE project proposal and introduced Mr. Jim Van Houten, President of MTE Truck & Trailer Service. Mr. Schalliol reported that MTE is presently located on West Sample Street and is one of many businesses being displaced due to the TJX Project. Mr. Schalliol then presented a disposition of property proposal on Lots 9, 10 and %2 of 11 in the US 31 Industrial Park. It is a 7.7 acre site with a proposed purchase price of $215,600. Mr. Van Houten has worked with staff on the new location and building design for the project. Mr. Schalliol also introduced Steve Ellison of F M Stone Commercial who has been working with staff on the property sale. Mr. Van Houten noted that the area which borders the US 31 bypass (the St. Joseph Valley Parkway) affords the new location a lot of visibility and they feel fortunate to have received approval for additional signage. Mr. Van Houten further explained MTE is the type of business which relies upon visible signage such as that proposed to be placed near the exit and entrance ramps to Brick Road. Mr. Van Houten said he 14 G South Bend Redevelopment Commission Regular Meeting —June 7, 2002 5. OLD BUSINESS (CONT.) A. Airport Economic Development Area (1) continued... was excited to be moving to this better location, especially because of the potential for additional customers traveling through the area on the toll road. Upon a motion by Mr. Faccenda, seconded by Ms. Roemer and unanimously carried, the Commission accepted the proposal from MTE for Lots 9, 10, 11 in the U.S. 31 Industrial Park. 6. NEW BUSINESS A. Tax Abatements (1) Commission authorization requested to sign tax abatement petition on behalf of JVH, Inc. Mr. Inks advised that the Commission is the current owner of the property which will be sold to JVH, Inc. and, therefore, the Commission needs to be co- petitioner on the tax abatement. Mr. Beitzinger noted that the tax abatement request will be submitted by the South Bend Redevelopment Commission on behalf of JVH, Inc. COMMISSION ACCEPTED THE PROPOSAL FROM MTE FOR LOTS 9, 10, 11 IN THE U.S. 31 INDUSTRIAL PARK Upon a motion by Mr. Faccenda, COMMISSION APPROVED THE REQUEST TO SIGN seconded by Mr. Kahn and unanimously TAX ABATEMENT PETITION ON BEHALF OF JVH, carried, the Commission authorized INC. signing the tax abatement petition on behalf of JVH, Inc. X C+J South Bend Redevelopment Commission Regular Meeting —June 7, 2002 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) Commission approval requested for Resolution No. 1890 approving an application for real property tax deduction for property located at 4833 Ameritech Drive in the Airport Economic Development Area. (South Bend Redevelopment Commission for the benefit of JVH, Inc.) Mr. Beitzinger introduced a new staff member, Felicia Davis, to the Commission. Ms. Davis was previously a part-time intern working primarily on a tax abatement data base. She is now a full time employee doing tax abatements as an additional assignment. ILI Ms. Davis reported that JVH, Inc. has proposed to build a 27,200 SF building on approximately 7.7 acres in the US 31 Industrial Park. After completion, the building will be leased to MTE Sales & Rentals, Inc. d/b /a MTE Truck & Trailer Service, MTE Leasing, Inc., and MTE Parts, Inc. d/b /a IMI Company. The estimated cost of the project is $1,600,000. The visibility and easy access from US 31 will allow truck sales, repair, and parts to be expanded. These companies are relocating at this time because the property, 1818 Sample Street, where MTE Truck & Trailer Service currently operates, has been purchased by the City of South Bend for the TJX project at Sample and Olive Streets. Since MTE Truck & Trailer Service has operated in the area since L South Bend Redevelopment Commission Regular Meeting —June 7, 2002 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) continued... 1984, they expect to set up a satellite repair shop where they can continue to serve their many loyal customers. The satellite shop will be coordinated with the larger facility in the US 31 Industrial Park. It is estimated that this project will create three new permanent full time jobs within the first year, representing a new annual payroll of $100,000. It is also estimated that this project will help retain twenty -eight current full time jobs, representing a payroll of $1,290,266. The petitioner has not been granted any previous tax abatements. The property is properly zoned for the proposed project and is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area. A review of the Tax Abatement Ordinance finds that the petitioner does not meet the qualifications for real property tax abatement. The petitioner is respectfully requesting consideration of a ten year real property abatement for the following reasons: 1. The petitioner was asked by the City of South Bend to relocate the business to accommodate the TJX Company's new warehouse distribution center. L A I South Bend Redevelopment Commission Regular Meeting —June 7, 2002 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) continued... 2. The company's new site requires additional building modifications to meet the restrictive covenants of the area which adds to the overall cost of the building. 3. The new location fits the City of South Bend's development plans for the area and will support the warehouse and distribution services already located within the area. Based upon the above, the petitioner is respectfully requesting consideration of a ILI special exception ten -year real property tax abatement under Section 2 -84 of the South Bend municipal code, which is the Council's Authority to Enlarge Real Property Tax Abatement General Standards. Based on a total estimated project cost of $1,384,400 the cost of the tax abatement is as follows: L Estimated taxes over 10 years Without abatement $738,307 With 10 -year $372,845 abatement Estimated cost of $365,462 10 -year abatement L South Bend Redevelopment Commission Regular Meeting —June 7, 2002 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) continued... Ms. Greene explained that it is actually the Council that grants the abatement. The South Bend Redevelopment Commission is simply agreeing to waive the TIF. Mr. Faccenda commented that the tax abatement seemed equitable because the City was asking (or telling) the petitioner to move from their current location and therefore should not increase their cost of business to keep them in the City. Upon a motion by Mr. Faccenda, IL seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 1890 approving an application for real property tax deduction for property located at 4833 Ameritech Drive in the Airport Economic Development Area. (South Bend Redevelopment Commission for the benefit of JVH, Inc.) B. Housing There was no housing business. C. South Bend Central Development Area. (1) Commission approval requested for Resolution No. 1891 ratifying, confirming and approving an Advisory Services Agreement with the L8 COMMISSION APPROVED RESOLUTION NO. 1890 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 4833 AMERITECH DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (SOUTH BEND REDEVELOPMENT COMMISSION FOR THE BENEFIT OF JVH, INC.) THERE WAS NO HOUSING BUSINESS. South Bend Redevelopment Commission Regular Meeting —June 7, 2002 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... Urban Land Institute related to the potential expansion of Century Center in the South Bend Central Development Area. Mr. Mathia reported that the Century Center is contemplating an expansion project and also considering constructing a hotel on what is currently their parking lot. Staff has had discussions with a well established advisory group, Urban Land Institute, regarding assisting with a feasibility study on the project. Mr. Mathia explained that Resolution No. 1891 ratifies a contract for advisory services with ULI that has previously been signed by Mayor Luecke. Under the contract, ULI will provide professional services to assist the City in determining the feasibility of the proposal for expansion of the Century Center and the construction of a hotel. ULI will provide a panel of 5 to 6 senior level personnel who are experts in convention/hotel real estate planning and development. ULI will come to South Bend to inspect the site, conduct interviews with various people in the community, conduct a presentation on recommendations and design a strategy for the City to achieve those recommendations. The total cost of the contract is $40,000 payable in two installments of $20,000 each. c, 9 C +. South Bend Redevelopment Commission Regular Meeting —June 7, 2002 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... Upon a motion by Mr. Kahn, seconded by Ms. Roemer and unanimously carried, the Commission approved Resolution No. 1891 ratifying, confirming and approving an Advisory Services Agreement with the Urban Land Institute related to the potential expansion of Century Center in the South Bend Central Development Area. (2) Commission approval requested for a Commercial Lease between the South Bend Redevelopment Commission and Kendall Catering, Inc., d/b /a Catering by Billie in the South Bend Central Development Area. Mr. Williams reported that the lease is the result of prior actions taken by the Commission on February 1, 2002 at which time the Commission granted a three -step (one -year) lease sequence renting an entire space, however charging in three different increments. Referencing "Space 1 " and "Space 2 ", Space 2 was to be given at no cost the first year, 50% the second year and 100% the third year. Mr. Williams noted that the commercial lease has now been prepared and staff recommends approval based on the three -step, one -year proposal, retroactive to March 1, 2002. Upon a motion by Mr. Kahn, seconded by Ms. Roemer and unanimously carried, the Commission approved a Commercial Lease between the South Bend 10 COMMISSION APPROVED RESOLUTION NO. 1891 RATIFYING, CONFIRMING AND APPROVING AN ADVISORY SERVICES AGREEMENT WITH THE URBAN LAND INSTITUTE RELATED TO THE POTENTIAL EXPANSION OF CENTURY CENTER IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. COMMISSION APPROVED A COMMERCIAL LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND KENDALL CATERING, INC., D /B /A CATERING BY BILLY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting —June 7, 2002 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (2) continued... Redevelopment Commission and Kendall Catering, Inc., d/b /a Catering by Billy in the South Bend Central Development Area. (3) Commission approval requested for "Early Out" option to be presented to Lessee in the South Bend Central Development Area. ( Quizno's, Michigan Street Shops) Mr. Williams advised that Quizno's corporate office has requested the preparation of an "early out" cost IL proposal terminating their present lease in the Michigan Street Shops effective December 31, 2002. The current lease is landlord friendly and would require that Quizno's pay the rent through the termination of the lease in 2006. CB Richard Ellis has prepared a proposal which was reviewed by staff as well as the City's legal department. The proposal covers the unamortized costs involved of $36,911.07 and, in addition, requires Quizno's to pay rent and CAM expenses in the amount of $1,610.09 per month until such time as the space is re- rented. Upon a motion by Mr. Kahn, seconded COMMISSION APPROVED A REQUEST FOR "EARLY by Ms. Roemer and unanimously carried, OUT" OPTION TO BE PRESENTED TO LESSEE IN the Commission approved a request for THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (QUIZNO'S MICHIGAN STREET SHOPS) "Early Out" option to be presented to ' Lessee in the South Bend Central Development Area. ( Quizno's, Michigan Street Shops) 11 South Bend Redevelopment Commission Regular Meeting —June 7, 2002 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (1) Commission approval requested for Resolution No. 1892 related to acquisition of property located in the Sample -Ewing Development Area by eminent domain. Mr. Inks advised that this property was added to the acquisition list earlier in 2002 and Resolution No. 1892 sets the offering price at $25,250. Mr. Schalliol reported that the property is the first of several acquisitions anticipated within the Sample -Ewing Development Area for a potential future project. Mr. Schalliol also noted that prior discussions have taken place with the property owner and terms of purchase appear to be equitable for both parties. Upon a motion by Ms. Roemer, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 1892 related to acquisition of property in the Sample - Ewing Development area by Eminent Domain. (2) Commission approval requested for Resolution No. 1893 approving and authorizing the execution of an Agency Agreement by and between the South Bend Redevelopment Commission and the City of South Bend, Indiana, Board of Public Works relating to the Oliver Plow Works redevelopment project. 12 COMMISSION APPROVED RESOLUTION NO. 1892 RELATED TO ACQUISITION OF PROPERTY IN THE SAMPLE -EWING DEVELOPMENT AREA BY EMINENT DOMAIN. D South Bend Redevelopment Commission Regular Meeting —June 7, 2002 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (2) continued... Mr. Laurent reported that the Agency Agreement is between the Redevelopment Commission as owner of the Oliver Plow Works property and the City of South Bend Board of Public Works. The Board of Public Works will be providing construction and demolition management services to the Commission. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 1893 authorizing the execution of an Agency Agreement by and between the South Bend Redevelopment Commission and the City of South Bend, Indiana, Board of Public Works relating to the Oliver Plow Works redevelopment project. E. Airport Economic Development Area (1) Commission approval requested for proposal for professional services for Lots 9 -11 of the US 31 Industrial Park located in the Airport Economic Development Area. (ALTA survey services, The Abonmarche Group) Mr. Schalliol explained that to finalize the land sale with JVH, Inc., staff will be completing an ALTA survey on Lots 9, 10, and % of 11 in the US 31 Industrial Park which will become Parcel 9A after C. 13 COMMISSION APPROVED RESOLUTION NO. 1893 AUTHORIZING THE EXECUTION OF AN AGENCY AGREEMENT BY AND BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE CITY OF SOUTH BEND, INDIANA, BOARD OF PUBLIC WORKS RELATING TO THE OLIVER PLOW WORKS REDEVELOPMENT PROJECT. South Bend Redevelopment Commission Regular Meeting —June 7, 2002 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (1) continued... replatting. The ALTA survey is the highest technical standard survey and includes all easements and improvements to the property. This contract would be a not -to- exceed amount of $1,250 with The Abonmarche Group. Upon a motion by Ms. Roemer, seconded by Mr. Kahn and unanimously carried, the Commission approved the proposal for professional services for Lots 9 -11 of the US 31 Industrial Park located in the Airport Economic Development Area. (ALTA survey services, The Abonmarche Group) (2) Commission approval requested for extension of time for construction in the Airport Economic Development Area. (Deluxe Sheet Metal) Mr. Inks reported that the Contract for Sale of Land with Deluxe Sheet Metal stipulates a project completion date of June 25, 2002. Miscellaneous delays in construction have occurred and Deluxe Sheet Metal has asked for an extension on the completion date to October 31, 2002. The staff feels the extension is reasonable and recommends approval of the request. Upon a motion by Mr. Kahn, seconded by Ms. Roemer and unanimously carried, 14 COMMISSION APPROVED THE PROPOSAL FOR PROFESSIONAL SERVICES FOR LOTS 9 -11 OF THE US 31 INDUSTRIAL PARK LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (ALTA SURVEY SERVICES, THE ABONMARCHE GROUP) COMMISSION APPROVED THE EXTENSION OF TIME FOR CONSTRUCTION IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (DELUXE SHEET METAL) A South Bend Redevelopment Commission Regular Meeting —June 7, 2002 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (2) continued... the Commission approved the extension of time for construction in the Airport Economic Development Area. (Deluxe Sheet Metal) 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. IL H. Other (1) Commission approval requested for Agreement By and Between The South Bend Redevelopment Commission and J. B. Investment Properties, Inc. (Scottsdale Mall) Ms. Greene reported J. B. Investment Properties, Inc. is currently in negotiations to purchase Scottsdale Mall and has requested that the City partner with it as part of the process. The agreement outlines the plan by which the City will assist the developer in the project. The developer has not yet acquired the property, but is currently involved in negotiations. Ms. Greene explained that the agreement would be an initial step evidencing the (M� r 15 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 —June 7, 2002 6. NEW BUSINESS (CONT.) H. Other (1) continued... Commission and the City's commitment to the development of Scottsdale Mall. Under the agreement, the City's commitment consists of the following: 1. Working with the state to secure an east -west exit from the St. Joseph Valley Parkway onto Miami Street. The City's commitment on this item is contingent upon the Indiana Department of Commerce's willingness to finance and construct the entrance /exit ramps or if the City receives sufficient income from a yet- to -be- created Sales Tax Increment Financing District. 2. Relocation of the Studebaker Museum to Scottsdale Mall. The lease will be negotiated between the Studebaker Museum board and the developer. Minimum requirements for the lease are outlined in the development agreement. 3. The City will support the developers efforts to secure a reduction in the current assessed value for a 5 -year period. 4. The City will support a variety of changes to site planning, zoning, and development design standards. 16 A r i South Bend Redevelopment Commission Regular Meeting —June 7, 2002 6. NEW BUSINESS (CONT.) H. Other (1) continued... Ms. Greene introduced Attorney John Ford from the law firm of Jones Obenchain and attorney for J. B. Investment Properties, Inc.. Mr. Ford advised the Commission that the agreement was a contingent contract based upon the developer's continued negotiations to acquire Scottsdale Mall. Mr. Ford offered to address any questions the Commission might have regarding the agreement. Ms. Greene acknowledged that many actions will have to be taken before any work actually commences on the site. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the Agreement By and Between The South Bend Redevelopment Commission and J. B. Investment Properties, Inc. (Scottsdale Mall) 7. PROGRESS REPORTS Mr. Inks informed the Commission that the first half of 2002 was productive. A progress report covering the first six months for all development areas would be forwarded. Mr. Inks invited Commissioners to stop and see the TJX Project which remains on target with a date of July 1, 2002 for Close of Sale and possession of property for Phase I construction. 17 COMMISSION APPROVED THE AGREEMENT BY AND BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND J. B. INVESTMENT PROPERTIES, INC. (SCOTTSDALE MALL) PROGRESS REPORTS 14 South Bend Redevelopment Commission Regular Meeting —June 7, 2002 8• NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for June 21, 2002 at NEXT COMMISSION MEETING 10:00 a.m. 9• ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Kahn made a motion that the meeting be adjourned. Ms. Roemer seconded the motion and the meeting was adjourned at 10:30 a.m. Robert W. Hunt, President (18 Donald E. Inks, Director R F t Z` f