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HomeMy WebLinkAbout04-15-02 Redevelopment Commission Minutes14 SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING April 15, 2002 10:00 a.m. Presiding: Robert W. Hunt, President 1. ROLL CALL Members Present: Legal Counsel: 227 West Jefferson Boulevard South Bend, Indiana Mr. Robert W. Hunt, President Ms. Marcia Jones, Vice - President Mr. Philip J. Faccenda, Secretary Mr. Matt Kahn Ms. M. Catherine Roemer Ms. Cheryl Greene Redevelopment Staff: Mr. Donald Inks, Director Ms. Pamela Morris, Recording Secretary Ms. Ann Kolata, Senior Redevelopment Specialist Mr. Mike Beitzinger, Economic Development Specialist Mr. Bill Schalliol, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Mr. Robert Case, Economic Development Specialist Ms. Cheryl Phipps, Economic Development Secretary Others: Ms. Pam Paluszewski, Legal Department Mr. Pat McMahon, Project Future Mr. Ken Downey, TJX Companies, Inc. Mr. George Weber, Forum Architects, Inc. Ms. Anne Bruneel, Baker & Daniels Mr. Rick Hill, Baker & Daniels 2. APPROVAL OF MINUTES A. Commission approval of the Minutes of the Regular Meeting of March 15, 2002. The minutes were not available for approval. B. Commission approval of the Minutes of the Special Meeting of March 28, 2002. The minutes were not available for approval. 1 MINUTES WERE NOT AVAILABLE FOR APPROVAL. MINUTES WERE NOT AVAILABLE FOR APPROVAL. M South Bend Redevelopment Commission Special Meeting —April 15, 2002 2. APPROVAL OF MINUTES (CONT.) C. Commission approval of the Minutes of the Regular Meeting of April 5, 2002. The minutes were not available for approval. 3. APPROVAL OF CLAIMS There were no Claims for approval. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS A. Commission approval requested for Acceptance of Assignment of Option from the Urban Enterprise Association. (AEP) Mr. Inks advised that this Assignment was in reference to the AEP property for the TJX Project. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission accepted the Assignment of Option from the Urban Enterprise Association. (AEP) B. Commission authorization requested for Redevelopment Director to exercise the Option from American Electric Power for Tax Key No. 18- 8075- 2841.15 (Sample -Olive Industrial Study Area) Upon a motion by Ms. Jones, seconded by Ms. Roemer and unanimously carried, the Commission authorized the Redevelopment Director to exercise the Option from American Electric Power for Tax Key No. 18 -8075- 2842.15. (Sample -Olive Industrial Study Area) L MINUTES WERE NOT AVAILABLE FOR APPROVAL. THERE WERE NO CLAIMS FOR APPROVAL. THERE WERE NO COMMUNICATIONS. COMMISSION ACCEPTED THE ASSIGNMENT OF OPTION FROM THE URBAN ENTERPRISE ASSOCIATION. (AEP) COMMISSION AUTHORIZED THE REDEVELOPMENT DIRECTOR TO EXERCISE THE OPTION FROM AMERICAN ELECTRIC POWER FOR TAX KEY No. 18- 8075- 2842.15. (SAMPLE - OLIVE INDUSTRIAL STUDY AREA) South Bend Redevelopment Commission IL Special Meeting —April 15, 2002 6. NEW BUSINESS A. Public Hearings (1) Public hearing on Resolution No. 1880 amending the Sample -Ewing Development Area Development Plan. (Sample -Ewing Development Area) The following items were entered into the record: (1) Affidavits from the Tri- County News and South Bend Tribune that the Notice of Public Hearing was published in those newspapers on March 29, 2002; (2) A statement from Bill Schalliol that on March 28, 2002, copies of the Notice of Public Hearing were sent to the affected property owners and registered ILneighborhood associations; and (3) As of 10:00 a.m. today, no written remonstrances were received. Mr. Schalliol explained that Resolution No. 1880 added a property to the acquisition list for the Sample -Ewing Development Area. The property is located on South Franklin Street and was deleted from the acquisition list approved by the Commission at the Special Meeting of March 28, 2002 due to an erroneous tax key number and legal description. Mr. Schalliol also advised that the property owner was not in attendance. Ms. Greene noted that the property will complete the acquisition of the Stamping Plant area and Oliver Plow Works property. IL South Bend Redevelopment Commission IL Special Meeting —April 15, 2002 6. NEW BUSINESS (CONT.) A. Public Hearings (1) continued... Mr. Hunt opened the Public Hearing on Resolution No. 1880 and asked if there was anyone who wished to speak. There being no one who wished to speak regarding Resolution No. 1880, Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. (2) Commission approval requested for Resolution No. 1880. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 1880 amending the Sample -Ewing Development Area Development Plan. (Sample -Ewing Development Area) B. Sample -Ewing Development Area (1) Receipt and opening of Bids in connection with 70 acres in the Sample -Ewing Development Area. (Corner of Sample and Olive) Mr. Inks reported that one bid had been received for the property on the corner of Sample and Olive. Mr. Inks opened the bid, which was then briefly reviewed by Ms. Greene to ensure that the bid was complete. Mr. Inks highlighted the bid as follows: IL 4 COMMISSION APPROVED RESOLUTION NO. 1880 AMENDING THE SAMPLE -EWING DEVELOPMENT AREA DEVELOPMENT PLAN. (SAMPLE -EWING DEVELOPMENT AREA) South Bend Redevelopment Commission Special Meeting —April 15, 2002 6. NEW BUSINESS (CONT.) B. Sample -Ewing Development Area (1) continued... • The bid is for the entire 70.95 acres offered. • The per acre price is $32,500 for a total amount of $2,305,875. • The bid is from AJW South Bend Realty Corp. Mr. Inks requested that the bid be referred to the Redevelopment staff for review, to be presented later in the meeting. There was no objection and the bid was referred to staff for review. (2) Commission approval requested for Resolution No. 1883 approving and accepting the transfer of real property from St. Joseph County, Indiana. Mr. Inks reported that Resolution No. 1883 was related to the TJX Project. Ms. Greene advised that staff is in final discussions with the County with respect to this transfer of real property. The Commission is being asked to approve Resolution No. 1883 which accepts the transfer of property from St. Joseph County, Indiana, subject to a matching resolution from the County approving transfer to the Commission. Ms. Greene noted that the County has not taken its final action, and due to the timing considerations of the TJX Project, staff is asking the Commission to act prior to the County effecting the transfer. Ms. C South Bend Redevelopment Commission IL Special Meeting —April 15, 2002 6. NEW BUSINESS (CONT.) B. Sample -Ewing Development Area (2) continued... Greene also explained that in the event the County does not effect the transfer, the Commission's action would be nullified; however, it is anticipated the County will be taking action at their next opportunity. Upon a motion by Ms. Jones, seconded by Ms. Roemer and unanimously carried, the Commission approved Resolution No. 1883 approving and accepting the transfer of real property from St. Joseph County, Indiana, subject to a matching resolution by the St. Joseph County Commission. (3) Commission approval requested for Resolution No. 1884 approving and accepting the transfer of real property from the South Bend Community School Corporation. Ms. Greene reported that Resolution No. 1884 relates to the acquisition of property for the TJX Project, and involves the transfer of property from the South Bend Community School Corporation. Ms. Greene advised that the School Corporation has not yet taken final action approving the transfer of the property to the Commission, and staff is requesting the Commission to act prior to the School Corporation effecting the transfer. The Commission is being asked to approve Resolution No. 1884 L COMMISSION APPROVED RESOLUTION NO. 1883 APPROVING AND ACCEPTING THE TRANSFER OF REAL PROPERTY FROM ST. JOSEPH COUNTY, INDIANA, SUBJECT TO A MATCHING RESOLUTION BY THE ST. JOSEPH COUNTY COMMISSION. South Bend Redevelopment Commission Special Meeting —April 15, 2002 6. NEW BUSINESS (CONT.) B. Sample -Ewing Development Area (3) continued... which accepts the transfer of property from the South Bend Community School Corporation subject to a matching resolution from the School Corporation approving transfer to the Commission. Ms. Greene reported that it was anticipated the School Corporation will act at its next scheduled meeting. Ms. Greene introduced Rich Hill of Baker & Daniels, representing the School Corporation. Mr. Hill informed the Commission that the School Board would be acting on the property transfer C4 that evening, and was also prepared to execute the deed at that time. Ms. Greene advised that in the event the School Corporation did not effect the transfer, the Commission's action would be nullified. Upon a motion by Mr. Kahn, seconded by Ms. Roemer and unanimously carried, the Commission approved Resolution No. 1884 approving and accepting the transfer of real property from the South Bend Community School Corporation subject to approval of the transfer by the South Bend Community School Corporation. (4) Commission authorization requested to sign tax abatement petition on behalf of AJW South Bend Realty _ Corp. 7 COMMISSION APPROVED RESOLUTION No. 1884 APPROVING AND ACCEPTING THE TRANSFER OF REAL PROPERTY FROM THE SOUTH BEND COMMUNITY SCHOOL CORPORATION SUBJECT TO APPROVAL OF THE TRANSFER BY THE SOUTH BEND COMMUNITY SCHOOL CORPORATION. South Bend Redevelopment Commission Special Meeting —April 15, 2002 (60� 6. NEW BUSINESS (CONT.) B. Sample -Ewing Development Area (4) continued... Mr. Beitzinger noted that periodically when properties are acquired by the Redevelopment Commission, the Commission signs the petition for the benefit of the company seeking abatement. Mr. Beitzinger cited two previous examples: The Associates Building (Crescent Michiana) developed by Panzica, and Bowne Printing, in which the Redevelopment Commission had control of the properties and signed the petitions for the benefit of each company. Upon a motion by Mr. Faccenda, COMMISSION APPROVED THE REQUEST TO SIGN seconded by Ms. Jones and unanimously TAX ABATEMENT PETITION ON BEHALF OF AJW carried, the Commission approved the SOUTH BEND REALTY CORP. request to sign tax abatement petition on behalf of AJW South Bend Realty Corp. (5) Commission approval requested for Resolution No. 1885 approving an application for real property tax deduction for property located at the corner of Sample and Olive in the Sample -Ewing Development Area. (South Bend Redevelopment Commission for the benefit of the AJW South Bend Realty Corp.) Mr. Beitzinger gave the staff report on the project. AJW South Bend Realty Corp., is a real estate holding company for A. J. Wright, a division of the TJX Companies, Inc. They propose to build L8 South Bend Redevelopment Commission Special Meeting —April 15, 2002 6. NEW BUSINESS (CONT.) B. Sample -Ewing Development Area (5) continued... an 800,000 sq. ft. warehouse /distribution center at the southeast corner of Sample and Olive Streets. A. J. Wright sells off - price apparel at 46 retail locations throughout the United States. This warehouse /distribution center will service its Midwest locations and allow for an expansion of its Midwest operations. The project will be completed in two phases. An initial 500,000 sft. Phase I will break ground in July 2002 and a second 300,000 sft. Phase II is expected to break ground in July of 2004 and be completed by July 2005. The buildings will be built on over seventy acres of land in the Sample -Ewing Development Area. The estimated cost of the building is $24,000,000, while land costs have been estimated at nearly $2.5 million. In addition, equipment expenses (which are not eligible for personal property tax abatement) have been estimated at $20 million making the total project cost nearly $47 million. It is estimated that this project will create one hundred and forty new permanent jobs within the first year, representing a new annual payroll of $2.2 million. This figure does not include benefits, which if added would raise the total payroll to over $2.6 million. In addition, the petitioner is estimating that within five South Bend Redevelopment Commission Special Meeting —April 15, 2002 6. NEW BUSINESS (CONT.) B. Sample -Ewing Development Area (5) continued... years this project will create a total of eight hundred and seventy -four new jobs, representing an payroll of over $44 million, including benefits. The petitioner has not been granted any previous tax abatement. The property is properly zoned for the proposed project. The property is located in an area presently designated as a Tax Abatement Impact Area by the South Bend Common Council. The property is located in an area presently designated as an Economic Development Target Area IL by the South Bend Economic Development Commission. The property is located within the Urban Enterprise Zone boundaries. The property is located in the Sample -Ewing Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. The petitioner meets the qualifications for a ten -year real property tax abatement based on the Tax Abatement Ordinance. Based on a total estimated project cost of $24,000,000 the cost of the tax abatement is a follows: IL 10 South Bend Redevelopment Commission IL Special Meeting —April 15, 2002 6. NEW BUSINESS (CONT.) B. Sample -Ewing Development Area (5) continued... Upon a motion by Mr. Faccenda, ILI seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1885 approving an application for real property tax deduction for property located at the corner of Sample and Olive in the Sample -Ewing Development Area. (South Bend Redevelopment Commission for the benefit of the AJW South Bend Realty Corp.) Mr. Inks requested that the meeting be recessed for approximately fifteen minutes to await the Redevelopment staff report on the bid received from AJW South Bend Realty Corp. for 70.95 acres of property located on the corner of Sample & Olive streets. There were no objections and the meeting was recessed at 10:16 a.m. Mr. Hunt reconvened the meeting at 10:22 a.m. 11 COMMISSION APPROVED RESOLUTION NO. 1885 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT THE CORNER OF SAMPLE AND OLIVE IN THE SAMPLE -EWING DEVELOPMENT AREA. (SOUTH BEND REDEVELOPMENT COMMISSION FOR THE BENEFIT OF THE AJW SOUTH BEND REALTY CORP.) MEETING RECESSED MEETING RECONVENED Estimated taxes over 10 years Without $5,761,308 Abatement With 10 year $2,909,460 Abatement Estimated cost $2,851,847 of 10 year abatement Upon a motion by Mr. Faccenda, ILI seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1885 approving an application for real property tax deduction for property located at the corner of Sample and Olive in the Sample -Ewing Development Area. (South Bend Redevelopment Commission for the benefit of the AJW South Bend Realty Corp.) Mr. Inks requested that the meeting be recessed for approximately fifteen minutes to await the Redevelopment staff report on the bid received from AJW South Bend Realty Corp. for 70.95 acres of property located on the corner of Sample & Olive streets. There were no objections and the meeting was recessed at 10:16 a.m. Mr. Hunt reconvened the meeting at 10:22 a.m. 11 COMMISSION APPROVED RESOLUTION NO. 1885 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT THE CORNER OF SAMPLE AND OLIVE IN THE SAMPLE -EWING DEVELOPMENT AREA. (SOUTH BEND REDEVELOPMENT COMMISSION FOR THE BENEFIT OF THE AJW SOUTH BEND REALTY CORP.) MEETING RECESSED MEETING RECONVENED South Bend Redevelopment Commission Lf Special Meeting —April 15, 2002 6. NEW BUSINESS (CONT.) B. Sample -Ewing Development Area (6) Staff report on disposition of property located in the Sample -Ewing Development Area. (Corner of Sample and Olive) Mr. Schalliol advised that the bid received from AJW South Bend Realty Corp for 70.95 acres of property located on the corner of Sample & Olive streets was reviewed by both himself and Ms. Kolata. Mr. Schalliol gave the staff report on the proposal. He noted that the bid package did contain all required information and he further outlined the proposed offer as it pertained to the Bid Specifications & Design Considerations items as follows: ► Item 1 –All requirements of the state law pertaining to the bidding process have been followed. ► Item 2 –Offer met minimum bid price of $32,500 per acre. ► Item 3 –The offer included all 70.95 acres being bid. ► Item 4 –The minimum building site coverage exceeded 20% of the area of the lot, as 20% equals 618,116.40 sq ft and the building proposed is 800,000 sq ft. ► Item 5 –The minimum building footprint area equaled 800,000 sq ft. Phase I is proposed to be 500,000 sq ft 12 South Bend Redevelopment Commission Special Meeting —April 15, 2002 6. NEW BUSINESS (CONT.) B. Sample -Ewing Development Area (6) continued... beginning July 1, 2002 and Phase II is proposed to be 300,000 sq ft to begin July 1, 2004. This was included in a Memorandum of Understanding agreement. ► Item 6 –The required use of the site is proposed to be warehousing and distribution. ► Item 7 –The site does, as proposed, conform to all zoning requirements. ► Item 8 –The proposal included a plan for on -site parking, storm water drainage management, storage, screening and landscaping. Mr. Schalliol noted that the plan, as submitted, meets all the requirements of the Redevelopment Department; however, must also be reviewed by the Building Department. Item 9 –Any portion of the site not used for buildings, streets, parking or driveways shall be planted and maintained, and the plan meets that requirement. ► Item 10–The proposal was submitted at the April 15, 2002 Special Meeting of the Redevelopment Commission. 13 South Bend Redevelopment Commission Special Meeting —April 15, 2002 6. NEW BUSINESS (CONT.) B. Sample -Ewing Development Area (6) continued... Mr. Schalliol advised that we have received the 10% guarantee from AJW South Bend Realty Corp. in the form of a Treasurer's check. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission accepted the bid from AJW South Bend Realty Corp. for 70.95 acres of property. (Corner of Sample and Olive) () Commission approval requested for Escrow Agreement with AJW South IL Bend Realty Corp. Ms. Greene advised that item 6.13.7. contemplates an escrow agreement which was captured in the original Memorandum of Understanding with TJX, Companies, Inc., and also captured within the context of the purchase agreement that is to be negotiated with AJW South Bend Realty Corp. with respect to the disposition of property. Ms. Greene noted that item 6.B.7. required no action by the Commission, and requested it be deleted. The Commission deleted Item 6.13.7. (8) Commission approval requested for Contract For Sale in the Sample - Ewing Development Area. 14 COMMISSION ACCEPTED THE BID FROM AJW SOUTH BEND REALTY CORP. FOR 70.95 ACRES OF PROPERTY. (CORNER OF SAMPLE AND OLIVE) COMMISSION DELETED ITEM 6.B.7. South Bend Redevelopment Commission Special Meeting —April 15, 2002 6. NEW BUSINESS (CONT.) B. Sample -Ewing Development Area (8) continued... Mr. Inks requested that Item 6.13.8. be tabled. There were no objections and the Commission tabled Item 6.13.8. 7. PROGRESS REPORTS Ms. Greene reported that negotiations were successfully completed with Allied Products, Inc., and as announced in a press conference on Friday, April 12, 2002, the Redevelopment Commission is the new owner of the former Stamping Plant and the Oliver Plow Works property. 8. NEXT COMMISSION MEETING ILThe next Regular g Meeting of the Redevelopment Commission is scheduled for April 19, 2002 at 10:00 a.m. 9. ADJOURNMENT COMMISSION TABLED ITEM 6.B.8. NEXT COMMISSION MEETING There being no further business to come before the ADJOURNMENT Redevelopment Commission, Ms. Jones made a motion that the meeting be adjourned. Mr. Kahn seconded the motion and the meeting was adjourned at 10:29 a.m. zle �Ie) Robert W. Hunt, President 15 G�- Donald E. Inks, Director