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Home My WebLink About03-15-02 Redevelopment Commission Minutes. s 14 G SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING March 15, 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 Mr. Philip J. Faccenda, Secretary Mr. Matt Kahn Ms. M. Catherine Roemer Ms. Marcia Jones, Vice - President Mr. Charles Leone Redevelopment Staff: Mr. Owen Rock, Assistant Director Ms. Pamela Morris, Recording Secretary Mr. Mike Beitzinger, Assistant Director Mr. Bill Schalliol, Economic Development Specialist Mr. Robert Mathia, Economic Development Specialist Mr.Gary Overmier, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Mrs. Cheryl Phipps, Redevelopment Secretary Others: Mr. Michael J. Anderson, Anderson, Agostino & Keller Mr. Peter J. Agostino, Anderson, Agostino & Keller Mr. Scott M. Keller, Anderson, Agostino & Keller 2. APPROVAL OF MINUTES A. Commission approval of the Minutes of the Regular Meeting of March 1, 2002. Upon a motion by Mr. Kahn, seconded by Ms. Roemer and unanimously carried, the Commission approved the Minutes of the Regular Meeting of March 1, 2002. 1 COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF MARCH 1, 2002. South Bend Redevelopment Commission Regular Meeting —March 15, 2002 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted March 15, 2002 for approval. 212 CDBG COMMUNITY DEVELOPMENT Baker & Daniels $ 929.27 General Fund - Telephone 282.80 Petty Cash 47.80 East Race Printing & Graphics 32.10 South Bend Tribune 78.85 Tri- County News, Inc 58.62 324 FUND City of South Bend 9.22 Baker & Daniels 491.88 DLZ 26,052.00 Wightman Petrie Inc. 818.00 J.F New & Associates 375.00 Meridian Title Corporation 150.00 Shamrock Network Design 150.00 Sopko, Nussbaum, & Inabnit 688.00 South Bend Tribune 75.88 R.E. Pitts & Associates 1,500.00 Club Marketing Concepts 1,395.00 414 SAMPLE -EWING FUND Envirocorp Inc. 1,000.00 420 SBCDA Lehman & Lehman, Inc. 3,389.45 424 TIF SBCDA- BUILDING OPERATIONS CB Richard Ellis 100.00 South Bend Water Works 480.00 619 BLACKTHORN Meadowbrook Golf Management 7,450.00 IL % 45.553.87 2 South Bend Redevelopment Commission Regular Meeting —March 15, 2002 3. APPROVAL OF CLAIMS (CONT.) Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the Claims submitted March 15, 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 Mr. Rock requested an additional item be added to the agenda for Commission approval to appoint Matthew Kahn to the Blackthorn Owners Association. There were no objections and the item was added as 6. F. (2). A. Public Hearings (1) Public hearing on Resolution No. 1871 appropriating monies for the purpose of defraying expenses of certain local public improvements for the fiscal year beginning January 01, 2002 and ending December 31, 2002, including all outstanding claims and obligations. (South Bend Medical District) Mr. Rock requested that the following items be entered into the record: Affidavits from the Tri- County News and South Bend Tribune that the Notice 3 COMMISSION APPROVED THE CLAIMS SUBMITTED MARCH 15, 2002, AND ORDERED THE CHECKS TO BE RELEASED. THERE WERE NO COMMUNICATIONS. THERE WAS NO OLD BUSINESS. South Bend Redevelopment Commission L Regular Meeting —March 15, 2002 6. NEW BUSINESS (CONT.) A. Public Hearings (1) continued... of Public Hearing was published in those newspapers on March 1, 2002. Mr Rock noted that the amount to be appropriated is not to exceed $10,181. Mr. Hunt opened the Public Hearing on Resolution No. 1871 and asked if there was anyone who wished to speak. There being no one who wished to speak regarding Resolution No. 1871, Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. (2) Commission approval requested for Resolution No. 1871. Upon a motion by Mr. Faccenda, seconded by Ms. Roemer and unanimously carried, the Commission approved Resolution No. 1871 appropriating monies for the purpose of defraying expenses of certain local public improvements for the fiscal year beginning January 01, 2002 and ending December 31, 2002, including all outstanding claims and obligations. (South Bend Medical District) B. Tax Abatements (1) Commission approval requested for Resolution No. 1875 approving an application for real property tax deduction for property located at ILI 131 S. Taylor Street in the West 4 PUBLIC HEARING ON RESOLUTION NO. 1871 COMMISSION APPROVED RESOLUTION NO. 1871 APPROPRIATING MONIES FOR THE PURPOSE OF DEFRAYING EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING JANUARY 01, 2002 AND ENDING DECEMBER 31, 2002, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS. (SOUTH BEND MEDICAL DISTRICT) South Bend Redevelopment Commission Regular Meeting —March 15, 2002 6. NEW BUSINESS (CONT.) B. Tax Abatements (1) continued... Washington - Chapin Development Area. (AAK Properties, LLC) Mr. Beitzinger gave the staff report on the project. AAK Properties, LLC (AAK) is the owner of the property at 131 S. Taylor Street. The principal members of AAK Properties are Michael J. Anderson, Peter J. Agostino and Scott M. Keller, who are also the principal members of the Anderson, Agostino and Keller law firm. AAK recently acquired the 20,950 sft. office building for the purposes of relocating and expanding Ic their law office. To accomplish the relocation, extensive renovations must be done to the building. The property also includes a severely dilapidated apartment building, which will be razed during the renovation of the office building. The proposed renovations include a complete new roof at a cost of nearly $100,000, exterior siding replacement and repainting, installation of handicap access ramps and handicap accessible bathrooms, HAVC system upgrades and replacements, installation of updated phone and computer lines, and numerous repairs to areas that have suffered significant water damage due to roof leaks. The total cost for all of the renovations is expected to exceed $270,000. 5 South Bend Redevelopment Commission LRegular Meeting —March 15, 2002 :4 6. NEW BUSINESS (CONT.) B. Tax Abatements (1) continued... Per the petition, it is estimated that this project will create three (3) new permanent jobs within the first year, representing a new annual payroll of approximately $252,500 (for an average salary of $84,166 per position). The project will also maintain thirteen (13) existing permanent full -time jobs and one part-time job representing an annual payroll of $995,000 (for an average salary of $73,703 per position). A review of the tax abatements previously granted, finds that the petitioner has not been granted any previous tax abatements. The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. The property is located in an area designated as a Tax Abatement Impact Area by the South Bend Common Council. The property is also located in the West Washington- Chapin 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. 2 South Bend Redevelopment Commission Regular Meeting —March 15, 2002 6. NEW BUSINESS (CONT.) B. Tax Abatements (1) continued... Based on a total project cost of $270,000 the cost of the tax abatement is as follows: Mr. Scott Keller of Anderson, Agostino & Keller advised the Commission that their law firm was established in June 2000 and since that time has been expanding. Mr. Keller noted that the firm's present facilities are too small, and after looking at various options, purchased the property at 131 S. Taylor Street from First Source Bank. They also purchased a connecting two story apartment building which has been subject to code enforcement orders and probably will have to be demolished at a cost to the firm of approximately $30,000. Mr. Keller stated the property has been underutilized for quite some time, thus explaining the need for numerous repairs and mechanical VA Estimated taxes over 3 years Without $32,407 abatement With 3 -yr $10,802 abatement Estimated $21,605 cost of 3 -yr abatement Mr. Scott Keller of Anderson, Agostino & Keller advised the Commission that their law firm was established in June 2000 and since that time has been expanding. Mr. Keller noted that the firm's present facilities are too small, and after looking at various options, purchased the property at 131 S. Taylor Street from First Source Bank. They also purchased a connecting two story apartment building which has been subject to code enforcement orders and probably will have to be demolished at a cost to the firm of approximately $30,000. Mr. Keller stated the property has been underutilized for quite some time, thus explaining the need for numerous repairs and mechanical VA A South Bend Redevelopment Commission Regular Meeting —March 15, 2002 6. NEW BUSINESS (CONT.) B. Tax Abatements (1) continued... upgrades. Mr. Keller advised that the building is 20,000 square feet and the law firm will use approximately one half of the space (or 10,000 square feet). They are anticipating finishing and leasing out the remainder of the space for professional use. Mr. Keller noted there is plenty of parking and the property is in a good location. Their intent is, with approved tax abatement, to make the property a very nice addition to the downtown area. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 1875 approving an application for real property tax deduction. (AAK Properties, LLC) C. Housing There was no housing business. D. South Bend Central Development Area There was no business. E. Sample -Ewing Development Area (1) Filing of Resolution No. 1876 a resolution of the city of South Bend Redevelopment Commission amending the Sample -Ewing Development Area Development Plan 8 COMMISSION APPROVED RESOLUTION NO. 1875 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION. (AAK PROPERTIES, LLC) THERE WAS NO HOUSING BUSINESS. THERE WAS NO BUSINESS IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting —March 15, 2002 6. NEW BUSINESS (CONT.) E. Sample -Ewing Development Area (1) continued... and setting a public hearing for 10:00 a.m., March 28, 2002 Upon a motion by Mr. Kahn, seconded by Ms. Roemer and unanimously carried, the Commission accepted for filing Resolution No. 1876 and set a public hearing on Resolution No. 1876 for 10:00 a.m., March 28, 2002 at a Special Meeting of the Redevelopment Commission. (2) Commission approval requested for Engagement Letter from Plews Shadley Racher & Braun to serve as environmental counsel on the Studebaker /Oliver project. Mr. Leone reported that Plews Shadley Racher & Braun is an Indianapolis law firm engaging primarily in environmental law and litigation. City attorneys have met with Plews Shadley and advised that they are a good firm with the capacity necessary to do the kinds of work the Commission needs. The engagement letter covers two items: the hourly work for the environmental matters dealing with Studebaker /Oliver Plow Works, and contingency arrangements with respect to insurance recovery from the insurance policies used to cover those properties. Mr. Leone also advised that favorable to the Commission the letter was renegotiated to include a cap on the 9 COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 1876 AND SET A PUBLIC HEARING ON RESOLUTION NO. 1876 FOR 10:00 A.M., MARCH 28, 2002 AT A SPECIAL MEETING OF THE REDEVELOPMENT COMMISSION. G South Bend Redevelopment Commission Regular Meeting —March 15, 2002 6. NEW BUSINESS (CONT.) E. Sample -Ewing Development Area (2) continued... amount that could be recovered, should a contingency recovery be somewhat lower. The hourly rates range from $325 down to $135 which Mr. Leone noted is also more favorable to the Commission than prior counsel fees. Mr. Leone recommended Plews Shadley Racher & Braun serve as environmental counsel on the Studebaker /Oliver project. Upon a motion by Ms. Roemer, seconded by Mr. Kahn and unanimously carried, the Commission approved the proposal from Plews Shadley Racher & Braun to serve as environmental counsel on the Studebaker /Oliver project. F. Airport Economic Development Area (1) Commission approval requested to purchase maintenance equipment for Blackthorn Golf Course. (fairway mowers & bunker rake) Mr. Rock reported that three proposals have been received to purchase maintenance equipment for the Blackthorn Golf Course. This equipment includes two fairway mowers and one bunker rake. Mr. Rock advised that these items were approved in the capital improvement budget for the golf course. The three proposals are as follows: 10 COMMISSION APPROVED THE PROPOSAL FROM PLEWS SHADLEY RACHER & BRAUN TO SERVE AS ENVIRONMENTAL COUNSEL ON THE STUDEBAKER/OLIVER PROJECT. South Bend Redevelopment Commission Regular Meeting —March 15, 2002 6. NEW BUSINESS (CONT.) F. Airport Economic Development Area (1) continued... Illinois Lawn Equip, Inc. $58,513.47 Horst Distributing, Inc. $86,200.00 W. F. Miller Co. $86,200.00 The staff recommends accepting the proposal from Illinois Lawn Equipment, Inc. for $58,513.47. Upon a motion by Mr. Kahn, seconded by Ms. Roemer and unanimously carried, the Commission approved the proposal from Illinois Lawn Equipment, Inc. in the Airport Economic Development Area. (Provide maintenance equipment for Blackthorn Golf Course) (2) Commission approval to appoint Mr. Matthew Kahn to the Blackthorn Owners Association, replacing Mr. Phil Faccenda. Mr. Hunt noted that Mr. Kahn had agreed to serve as a representative of the Redevopment Commission in the Blackthorn Owners Association. Upon a motion by Ms. Roemer, seconded by Mr. Hunt and unanimously carried, the Commission appointed Mr. Matthew Kahn to the Blackthorn Owners Association. G. South Bend Medical Services District There was no business [A 11 COMMISSION APPROVED THE PROPOSAL FROM ILLINOIS LAWN EQUIPMENT, INC. IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (PROVIDE MAINTENANCE EQUIPMENT FOR BLACKTHORN GOLF COURSE) THERE WAS NO BUSINESS IN THE SOUTH BEND MEDICAL SERVICES DISTRICT. South Bend Redevelopment Commission Regular Meeting —March 15, 2002 6. NEW BUSINESS (CONT.) H. West Washington- Chapin Development Area There was no business. I. Other There was no other business 7. PROGRESS REPORTS THERE WAS NO BUSINESS IN THE WEST WASHINGTON -CHAPIN DEVELOPMENT AREA. THERE WAS NO OTHER BUSINESS. Mr. Rock noted that it was Gary Overmier's last PROGRESS REPORTS day of employment with Economic Development. Gary will be taking a position with the Great Lakes Commission in Ann Arbor, MI. Mr. Hunt thanked Gary for his good work on behalf of the Commission and wished him the best of luck in his new position. 8. NEXT COMMISSION MEETING A Special Meeting of the Redevelopment NEXT COMMISSION MEETING Commission is scheduled for March 28, 2002 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Ms. Roemer made a motion that the meeting be adjourned. Mr. Kahn seconded the motion and the meeting was adjourned at 10:15 a.m. i� Robert W. Hunt, President 12 4 tz Donald E. Inks, Director PARKING PERMIT PARKING PERMIT PARKING PERMIT HAMILTON HAMILTON HAMILTON TOWING TOWING TOWING 917 S. Lafayette 917 S. Lafayette 917 S. Lafayette South Bend, IN 46601 South Bend, IN 46601 South Bend, IN 46601 289 - 6364289 -6364 289 -6364 289 -6364 PARKING PERMIT PARKING PERMIT PARKING PERMIT HAMILTON HAMILTON HAMILTON TOWING TOWING TOWING 917 S. Lafayette 917 S. Lafayette 917 S. Lafayette South Bend, IN 46601 South Bend, IN 46601 South Bend, IN 46601 289 - 6364289 -6364 289 -6364 289 -6364