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Home My WebLink About04-05-02 Redevelopment Commission MinutesM SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING April 5, 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. Robert Mathia, Economic Development Specialist Mr. Robert Case, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Mr. Terry O'Brien, Economic Development Loan Officer Ms. Cheryl Phipps, Economic Development Secretary Others: Mr. Ed Fain, Plant Manager, Federal Mogul Powertrain, Inc. Ms. Pam Paluszewski, Legal Department F #\ j ] .Z11i1 %�[I 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. South Bend Redevelopment Commission Regular Meeting —April 5, 2002 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted April 5, 2002 for approval. 212 CDBG COMMUNITY DEVELOPMENT Indiana University -South Bend $ 429.00 General Fund - Telephone 200.00 Padgett- Thompson 570.00 414 SAMPLE -EWING FUND Tri- County News 54.46 South Bend Tribune 71.02 Appraisal Specialists, Inc. 7575.00 424 TIF SBCDA- BUILDING OPERATIONS NIPSCO 478.05 CB Richard Ellis 405.39 $ 9782.92 Upon a motion by Mr. Faccenda, seconded by Mr. COMMISSION APPROVED THE CLAIMS SUBMITTED Kahn and unanimously carried, the Commission APRIL 5, 2002, AND ORDERED THE CHECKS TO BE approved the Claims submitted April 5, 2002, and RELEASED. ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. I 1911 W&Waomi A. Special Commendation (1) Commission approval requested for Resolution No. 1877 commending Jim Caldwell for exemplary service to the South Bend Redevelopment Commission. IL 2 THERE WERE NO COMMUNICATIONS. South Bend Redevelopment Commission Regular Meeting —April 5, 2002 5. OLD BUSINESS (CONT.) A. Special Commendation (1) continued... Mr. Hunt read Resolution No. 1877 as follows: A RESOLUTION COMMENDING JAMES CALDWELL FOR EXEMPLARY SERVICE TO THE SOUTH BEND REDEVELOPMENT COMMISSION WHEREAS, many people express concern about urban problems and their impact upon the community; and WHEREAS, some people demonstrate their concern by personal involvement in the process of seeking solutions; and WHEREAS, a very few people are both willing and able to bring a degree of dedication that culminates in real, measurable progress, enriching the life of the community; and WHEREAS, Jim served as a member of the South Bend Redevelopment Commission since June 15, 2000; and WHEREAS, Jim brought his lengthy experience as Assistant to the Mayor and has made special contributions to the Commission by bringing broad, detailed knowledge of government processes and government organizations to the Commission; and ILI 3 South Bend Redevelopment Commission Regular Meeting —April 5, 2002 %0�3 5. OLD BUSINESS (CONT.) A. Special Commendation (1) continued... WHEREAS, during his tenure on the Commission Jim has had an active role in projects such as Leighton Plaza, Bosch, Crowe Chizek, Press Ganey, Tire Racy Gibbs Wire, Indiana Supply, Global Motor Sports and Abro Industries, the Studebaker /Oliver Plow Works redevelopment project and the expansion of Blackthorn Development Area; and WHEREAS, Jim unselfishly gave of his time for the betterment of the community with no concern for individual honor or recognition, although he played an instrumental role in setting policy and negotiating through the details of many important projects; and WHEREAS, Jim has never forgotten the public that he serves and has been committed to the public process of decision making; and WHEREAS, Jim has decided to leave the Commission to continue his long and productive public service career pursuing elected office; NOW, THEREFORE, BE IT RESOLVED that the South Bend Redevelopment Commission hereby recognizes James Caldwell for his exemplary commitment and distinguished service to the South Bend Redevelopment Commission and G South Bend Redevelopment Commission Regular Meeting —April 5, 2002 5. OLD BUSINESS (CONT.) A. Special Commendation (1) continued... the City of South Bend; thanks him for the outstanding contributions he has made; and declares it will sincerely miss his diligent work and his presence at future meetings. Mr. Hunt presented Mr. Caldwell with a framed copy of the resolution. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 1877 commending Jim • Caldwell for exemplary service to the South Bend Redevelopment Commission. Mr. Coleman of the Mayor's office asked to publicly say "thank you" to Mr. Caldwell and expressed appreciation for everything Mr. Caldwell has done, not only for Redevelopment, but also for himself personally. Mr. Coleman acknowledged that Mayor Steve could not be present for the special recognition, but wanted to convey his sentiments of appreciation to Mr. Caldwell for serving the City, for giving to the City and for continued public service in the community. Mr. Coleman stated that what Mr. Caldwell has given to our community could never be measured, nor ever forgotten. Mr. Caldwell was given a gift of remembrance from the City. G COMMISSION APPROVED RESOLUTION NO. 1877 COMMENDING JIM CALDWELL FOR EXEMPLARY SERVICE TO THE SOUTH BEND REDEVELOPMENT COMMISSION. South Bend Redevelopment Commission Regular Meeting —April 5, 2002 5. OLD BUSINESS (CONT.) A. Special Commendation (1) continued... Mr. Caldwell thanked the Commission for their kind words and expressed what an honor it was to serve with the board, and particularly the redevelopment staff. He stated the board was blessed with a great staff who have done a tremendous job over the years and that it was personally great to be part of it. Mr. Caldwell then added that recognition was clearly not necessary, but greatly appreciated. B. South Bend Central Development Area (1) Commission approval requested for Lease Amendment with Esprit Decor in the South Bend Central Development Area. Mr. Williams reported that the space requested in the lease amendment is presently vacant and adjacent to Esprit Decor. It is 305 sq ft and will be added to the existing 2,091 sq ft of space currently being leased by Esprit Decor. The space will be rented at $6 per sq ft through December 31, 2002, $9 per sq ft through 2003 and $9.50 per sq ft through 2004. It was noted the amendment extended the original lease term ending date of March 31, 2003 to December 31, 2004. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved the 6 COMMISSION APPROVED THE LEASE AMENDMENT WITH ESPIRIT DECOR IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting —April 5, 2002 5. OLD BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... Lease Amendment with Espirit Decor in the South Bend Central Development Area. (2) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Lawn maintenance, Commission owned properties) Mr. Williams reported that three proposals were received to provide lawn maintenance for the 2002 season for Commission owned properties located in the South Bend Central Development Area. The quotes are as follows: Edges $ 3,130 Green Grass Property Maintenance $ 3,690 CB Richard Ellis $10,665 The staff recommends accepting the proposal from Edges in the amount of $3,130. Upon a motion by Ms. Roemer, seconded by Mr. Kahn and unanimously carried, the Commission approved the proposal from Edges for professional services in the South Bend Central Development Area. (Lawn maintenance, Commission owned properties) 7 COMMISSION APPROVED THE PROPOSAL FROM EDGES FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (LAWN MAINTENANCE, COMMISSION OWNED PROPERTIES) t, South Bend Redevelopment Commission Regular Meeting —April 5, 2002 5. OLD BUSINESS (CONT.) C. Sample -Ewing Development Area (1) 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) Mr. Inks requested that item 5.C.1. be COMMISSION TABLED ITEM 5.C.1. tabled. There were no objections and the Commission tabled item 5.C.1. D. Airport Economic Development Area (1) Commission approval requested for proposal for professional services in the Airport Economic Development Area. (Lawn maintenance, Commission owned properties) Tim Williams reported that three proposals were received to provide lawn maintenance for the 2002 season for commission owned properties located in the Airport Economic Development Area. The quotes are as follows: Edges $ 2,420 Green Grass Property Maintenance $ 1,090 CB Richard Ellis $ 3,990 Mr. Williams noted that the lowest bidder had omitted one of the properties. He also advised that Edges was the only contractor to furnish a Certificate of Insurance as requested. The staff recommends accepting the proposal from Edges in the amount of $2,420. 8 South Bend Redevelopment Commission ILI Regular Meeting —April 5, 2002 5. OLD BUSINESS (CONT.) D. Airport Economic Development Area (1) continued... Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the proposal from Edges for professional services in the Airport Economic Development Area. (Lawn maintenance, Commission owned properties) 6. NEW BUSINESS A. Tax Abatements (1) Commission approval requested for Resolution No.1881 approving an application for real property tax deduction for property located at 3605 West Cleveland Road in the Airport Economic Development Area. (Federal Mogul Powertrain, Inc.) Federal Mogul Powertrain, Inc. proposes to build a 14,400 sq. ft. addition to its existing manufacturing facility to accommodate new offices and manufacturing space. The manufacturing space will allow Federal Mogul to anodize and apply coating to pistons for GM and Ford. The building will be built on their existing property at 3605 West Cleveland Road, South Bend Indiana. The estimated cost of the building is $645,000. Per the petition, it is estimated that this project will create twenty four new permanent jobs within the first year, IL representing a new annual payroll of 9 COMMISSION APPROVED THE PROPOSAL FROM EDGES FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (LAWN MAINTENANCE, COMMISSION OWNED PROPERTIES) G South Bend Redevelopment Commission Regular Meeting —April 5, 2002 6. NEW BUSINESS (CONT.) A. Tax Abatements (1) continued... $613,000. It is also estimated that this project will help retain five hundred and forty five current jobs, representing an annual payroll of $20,586,000. A review of the tax abatements previously granted, finds that the petitioner (formerly known as AE Piston Products, Inc. and AE Goetze, Inc.) has been granted eight previous tax abatements. The petitioner is in compliance with the reporting requirements for each of the previous abatements. The property to be 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. Based on a total project cost of $645,000 the cost of the tax abatement is as follows: lull South Bend Redevelopment Commission IL Regular Meeting —April 5, 2002 6. NEW BUSINESS (CONT.) A. Tax Abatements (1) continued... G Ed Fain, Plant Manager of Federal Mogul, stated that the tax abatement benefit to Federal Mogul positions them not only for current growth, but for future growth. The company has taken on business where a coating is applied to pistons manufactured by General Motors. At some point in the future, it is anticipated that GM will exit the manufacture of pistons which would then put Federal Mogul in a key position for expansion. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved Substitute Resolution No. 1881 approving an application for real property tax deduction for property located at 3605 West Cleveland Road in the Airport Economic Development Area. (Federal Mogul Powertrain, Inc.) 11 COMMISSION APPROVED SUBSTITUTE RESOLUTION NO. 1881 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION. (FEDERAL MOGUL POWERTRAIN, INC.) Estimated taxes over 3 years Without $77,091 abatement With 3 -yr $25,722 abatement Estimated cost of $51,367 3 -yr abatement Ed Fain, Plant Manager of Federal Mogul, stated that the tax abatement benefit to Federal Mogul positions them not only for current growth, but for future growth. The company has taken on business where a coating is applied to pistons manufactured by General Motors. At some point in the future, it is anticipated that GM will exit the manufacture of pistons which would then put Federal Mogul in a key position for expansion. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved Substitute Resolution No. 1881 approving an application for real property tax deduction for property located at 3605 West Cleveland Road in the Airport Economic Development Area. (Federal Mogul Powertrain, Inc.) 11 COMMISSION APPROVED SUBSTITUTE RESOLUTION NO. 1881 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION. (FEDERAL MOGUL POWERTRAIN, INC.) South Bend Redevelopment Commission Regular Meeting —April 5, 2002 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) Commission approval requested for Resolution No.1882 approving an application for personal property tax deduction for property located at 3605 West Cleveland Road in the Airport Economic Development Area. (Federal Mogul Powertrain, Inc.) Federal Mogul Powertrain, Inc. proposes to purchase $1,020,000 of anodizing equipment and $2,230,000 of coating equipment for its existing manufacturing. This project will allow Federal Mogul to anodize and apply a friction coating to pistons for GM and ILI Ford. The Equipment will be built into their existing property at 3605 West Cleveland Road, South Bend Indiana. 11 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 estimated Equipment Cost of $3,250,000 the cost of the tax abatement is as follows: 12 Estimated taxes over 5 years Without $336,343 abatement With 5 -yr $115,120 abatement Estimated cost of $221,223 6 -yr abatement 12 G South Bend Redevelopment Commission Regular Meeting —April 5, 2002 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) continued... Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1882 approving an application for personal property tax deduction for property located at 3605 West Cleveland Road in the Airport Economic Development Area. (Federal Mogul Powertrain, Inc.) B. Housing There was no Housing business. C. South Bend Central Development Area There was no business. D. Sample -Ewing Development Area (1) Commission approval requested for Engagement Letter from Rosemary G. Spalding, Esq., to serve as environmental counsel on the Studebaker /Oliver Project. Ms. Greene advised Rosemary Spalding would be retained as general environmental counsel and not specific to the Studebaker Oliver Project. Ms. Kolata explained that she and Ms. Greene interviewed two extremely impressive attorneys, George Plews and Rosemary Spalding. Ms. Kolata noted 13 COMMISSION APPROVED RESOLUTION NO. 1882 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION. (FEDERAL MOGUL POWERTRAIN, INC.) THERE WAS NO HOUSING BUSINESS. THERE WAS NO BUSINESS IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting —April 5, 2002 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (1) continued... Mr. Plews had been retained at an earlier Commission meeting to work on the Studebaker Oliver project and possesses negotiating, eminent domain, environmental insurance and environmental litigation experience. Ms. Kolata reported that Ms. Spalding is located in Indianapolis, had previously held positions with the Indiana Department of Environmental Management and Baker & Daniels, and was highly recommended. Ms. Spalding would be retained to work on other IL environmental issues as they come up and may assist on the Studebaker project. Upon a motion by Ms. Roemer, seconded by Mr. Kahn and unanimously carried, the Commission approved the Engagement Letter from Rosemary G. Spalding to serve as general environmental counsel. (2) Commission approval requested for Letter Agreement for Management and Maintenance of the South Bend Stamping Plant Facility. Ms. Kolata reported that Jonathan Baker was originally hired by Allied Products Corporation to manage the former stamping plant property on South Franklin Street. Ms. Kolata noted that Mr. Baker knows the premises well 14 COMMISSION APPROVED THE ENGAGEMENT LETTER FROM ROSEMARY G. SPALDING TO SERVE AS GENERAL ENVIRONMENTAL COUNSEL. South Bend Redevelopment Commission Regular Meeting —April 5, 2002 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (2) continued... and would conduct daily property checks, together with other maintenance services such as snow removal and lawn mowing. As the City takes possession of the property, the staff is recommending that Mr. Baker be retained as an independent contractor to monitor the facility for a set fee of $400 per week. Upon a motion by Ms. Jones, seconded COMMISSION APPROVED THE LETTER by Ms. Roemer and unanimously AGREEMENT FOR MANAGEMENT AND carried, the Commission approved the MAINTENANCE OF THE SOUTH BEND STAMPING PLANT FACILITY. JONATHAN BAKER) Letter Agreement for Management and ILMaintenance of the South Bend Stamping Plant Facility. (Jonathan Baker) (3) Commission approval requested for proposal from C. B. Richard Ellis for management of the Oliver Plow property. Ms. Kolata reported on the proposal from CB Richard Ellis for management of the Oliver Plow Works property. Ms. Kolata noted that this proposal was an addendum to the management agreement we currently have in place. The proposal would be for six months with the ability to extend it for additional months if necessary. Services provided will include: twice a week walkthrough inspections of the office building; drive by of the other 15 South Bend Redevelopment Commission Regular Meeting —April 5, 2002 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (3) continued... buildings; collection of rent from the tenant in the warehouse building; paying utility bills; and being on call for emergency matters. The fee for these services will be $635 per month with the ability to negotiate a lower rate after demolition begins and management is reduced. Maintenance services will be billed at their regular hourly rates. Upon a motion by Ms. Roemer, seconded by Ms. Jones and unanimously carried, the Commission IL approved the Agreement with CB Richard Ellis for management of the Oliver Plow Works property. E. Airport Economic Development Area There was no business. F. South Bend Medical Services District There was no business. G. West Washington- Chapin Development Area There was no business. H. Other There was no Other business. ce 16 COMMISSION APPROVED THE AGREEMENT WITH CB RICHARD ELLIS FOR MANAGEMENT OF THE OLIVER PLOW WORKS PROPERTY. THERE WAS NO BUSINESS IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. 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 —April 5, 2002 C, 7. PROGRESS REPORTS There were no Progress Reports. 8. NEXT COMMISSION MEETING A Special Meeting of the Redevelopment Commission is scheduled for April 15, 2002 at 10:00 a.m. 9. ADJOURNMENT THERE WERE NO PROGRESS REPORTS. 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. Ms. Roemer seconded the motion and the meeting was adjourned at 10:25 a.m. C '� Z� Robert W. Hunt, President 17 , 4 [)�-' �".' � (� - �- Donald E. Inks, Director