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HomeMy WebLinkAbout10-19-01 Redevelopment Commission MinutesS SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING October 19, 2001 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. Matt Kahn Mr. James Caldwell Mr. Philip J. Faccenda, Secretary Ms. Cheryl Greene Redevelopment Staff: Mr. Donald Inks, Director Mrs. Lorraine Mauk, Recording Secretary Mrs. Cheryl Phipps, Administrative Assistant Mr. Owen Rock, Economic Development Specialist Mr. Bill Schalliol, Economic Development Specialist Mr. Robert Mathia, Economic Development Specialist Mr. Robert Case, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Ms. Ann Kolata, Senior Economic Development Specialist Mr. Gary Overmier, Economic Development Specialist Mr. Marco Mariani, Community Development Ms. Michelle Tomchak, Community Development Ms. Felecia Davis Others Present: Mr. Dick Mintz, Barnes & Thornburg Mr. Mell Hall, Press Ganey Mr. Mike Urbanski, Garden Homes Mr. Jim Larkin, Environmental Health Laboratories Mr. Paul Witek, Koontz/Wagner 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of September 7, 2001. 1 South Bend Redevelopment Commission Regular Meeting— October 19, 2001 2. APPROVAL OF MINUTES (CONT.) a. Continued... Upon a motion by Mr. Caldwell, seconded by Mr. Kahn and unanimously carried, the Commission approved the Minutes of the Regular Meeting of September 7, 2001. b. Commission approval of the Minutes of the Rescheduled Regular Meeting of September 28, 2001. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF SEPTEMBER 7,200 1. Upon a motion by Mr. Caldwell, seconded by COMMISSION APPROVED THE MINUTES OF THE Mr. Kahn and unanimously carried, the RESCHEDULED REGULAR MEETING OF Commission approved the Minutes of the SEPTEMBER 28,200 1. Rescheduled Regular Meeting of September 28, 2001. 3. CLAIMS Redevelopment Commission Claims submitted October 19, 2001 for approval. 212 CDBG COMMUNITY DEVELOPMENT General Fund - Telephone $ 219.39 Bank One 421.60 WZ1131100111 FM Stone Commercial 8,463.85 J. F. New & Associates 825.00 DLZ 10,020.00 Wightman Petrie Inc. 1,500.00 Shamrock Network Design 150.00 Meadowbrook Golf 7,450.00 NIPSCO 21,676.00 The Frame Factory 49.30 Small Inc. 275,906.60 Zevnick Horton LLP 270.54 2 I e South Bend Redevelopment Commission Regular Meeting— October 19, 2001 3. CLAIMS (CONT.) 420 SBCDA Edge's Lawn Care 424 TIF SBCDA- BUILDING OPERATIONS C & S Service, Inc. Kirby Risk Electric Supply NIPSCO Hill's True Value Hardware AEP Rose Exterminator Co. CB Richard Ellis Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the Claims submitted October 19, 2001, 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. Commission approval requested for Resolution No. 1849 an application for real property tax deduction for property located at 110 South Hill Street in the South Bend Central Development Area. (J & J Leasing) Mr. Beitzinger reported that J & J Leasing is the real estate holding company that leases to 3 250.00 120.00 15.68 6.07 17.07 1,240.67 42.00 1,469.54 $ 330,113.31 COMMISSION APPROVED THE CLAIMS SUBMITTED OCTOBER 19,200 1, AND ORDERED THE CHECKS TO BE RELEASED. THERE WERE NO COMMUNICATIONS. THERE WAS NO OLD BUSINESS. South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) a. Continued... Environmental Health Laboratories (EHL) located at 110 S. Hill Street. Since 1987, EHL has focused on becoming the nation's largest and most prestigious provider of laboratory analysis for the public water supply industry. EHL has now become the nation's most comprehensive certified facility with certifications for Safe Drinking Water Act compliance monitoring from 47 state agencies. EHL currently provides analyses to thousands of municipalities and hundreds of laboratories and engineering firms across the nation. In April 2001, EHL was purchased by Underwriters Laboratories (UL). UL wants to continue the tremendous growth that EHL has experienced in the past few years by nearly tripling the size of the facility with a 50,000 square feet building addition. The total cost of the new building is estimated at $7 million. UL will also be investing additional funds for new instrumentation, furniture, fixtures and infrastructure improvements. Per the petition, it is estimated that this project will create thirty -two (3 2) new permanent jobs within the first year, representing a new annual payroll of $1,256,096 (for an average salary of $39,253 per position). The project will also maintain 91 existing permanent full time jobs and 12 part time jobs representing an annual payroll of $3,925,255 (for an average salary of $40,467 per position). The expansion plan will also permit UL to move existing business programs from other UL facilities to the enlarged South Bend facility with the potential for 150 new jobs within the next 5 years. 2 South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) a. Continued... The petitioner has been granted one previous tax abatement in 1992, which was a six year abatement and the petitioner is in compliance with all of the reporting requirements for the previous abatement. The property is located in an area presently designed as a Tax Abatement Impact Area by the South Bend Common Council and is properly zoned for the proposed proj ect. The property is located in the South Bend Central 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 found that the petitioner does not fully meet the qualifications for the requested ten year abatement. Although the petitioner's property is located in a Tax Abatement Impact Area, that only qualifies the company for a three year abatement. The petitioner is respectfully requesting consideration of special exception ten year real property abatement based on the magnitude of the project and total project cost. This request would fall under municipal code, which is the Council's Authority to Enlarge Real Property Tax Abatement General Standards. At a total project cost of $7,000,000, the cost of granting the 10 -year abatement would be as follows: 5 South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) a. Continued... Mr. Beitzinger introduced Mr. Jim Larkin and invited him to add to the report. Mr. Larkin expressed his excitement for the project and offered to answer any questions the Commission may have. Mr. Hunt expressed the Commission's excitement about the project and the jobs as well. Upon a motion by Mr. Caldwell, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1849 an application for real property tax deduction for property located at 110 South Hill Street in the South Bend Central Development Area. (J & J Leasing, LLC) b. Commission approval requested for Resolution No. 1850 an application for real property tax deduction for property located at 2834 West Calvert Street in the Sample - Ewing Development Area. (G & M Prop.) Properties located within Redevelopment Areas require Redevelopment Commission approval 0 COMMISSION APPROVED RESOLUTION NO. 1849 AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 110 SOUTH HILL STREET IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (J & J LEASING, LLC) Estimated taxes over 10 yrs Without abatement $2,240,509 With 10 -yr $1,131,457 abatement Estimated cost of 10- $1,109,052 yr abatement Mr. Beitzinger introduced Mr. Jim Larkin and invited him to add to the report. Mr. Larkin expressed his excitement for the project and offered to answer any questions the Commission may have. Mr. Hunt expressed the Commission's excitement about the project and the jobs as well. Upon a motion by Mr. Caldwell, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1849 an application for real property tax deduction for property located at 110 South Hill Street in the South Bend Central Development Area. (J & J Leasing, LLC) b. Commission approval requested for Resolution No. 1850 an application for real property tax deduction for property located at 2834 West Calvert Street in the Sample - Ewing Development Area. (G & M Prop.) Properties located within Redevelopment Areas require Redevelopment Commission approval 0 COMMISSION APPROVED RESOLUTION NO. 1849 AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 110 SOUTH HILL STREET IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (J & J LEASING, LLC) South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) b. Continued... for real property tax abatement. Even though the petition cites several addresses, only the property at 2834 W. Calvert Street is located within a Redevelopment Area, which is the Sample -Ewing Development Area. The petitioner (Garden Homes) proposes to build homes on lots located at 4011 and 4005 Riverside Dr., 1752 Kessler Blvd., 2834 W. Calvert St. and combine 1210 and 1214 Sorin St. to build one home. The five -room, one story homes will be 1036 sq /ft each with three bedrooms, two baths on a full basement with a two car attached garage. The total cost for each new home is estimated to be between $90,000 and $110,000. Garden Homes has been granted 11 previous real property tax abatements between the years 1995 and 2000. The property at 2834 W. Calvert Street is properly zoned for the proposed project and it is located in the Sample -Ewing Development 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 5- year residential tax abatement under the Single Family Real Property Abatement. The cost of the abatement varies depending on the cost of specific homes. The range of the cost of the abatements is expressed in the following tables. Total project cost: $90,000 7 South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) b. Continued... Total project cost: $110,000 Estimated taxes over 5 yrs Without abatement $10,087 With 5 -yr abatement $2,522 Estimated cost of 5- yr abatement $7,565 Total project cost: $110,000 Mr. Beitzinger introduced Mr. Mike Urbanski, President, Garden Homes, and invited him to add to the report. Mr. Urbanski said that this particular property was missed when they applied for tax abatement last year. Of those they were able to start they have 11 houses up and have contracts on 3 or 4 more in that area. Upon a motion by Mr. Caldwell, seconded by Ms. Jones and unanimously carried, the Commission approval requested for Resolution No. 1850 an application for real property tax COMMISSION APPROVAL REQUESTED FOR RESOLUTION NO. 1850 AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2834 WEST CALVERT STREET IN THE SAMPLE -EWING DEVELOPMENT AREA. (G & M PROPERTIES) Estimated taxes over 5 yrs Without abatement $12,608 With 5 -yr abatement $5,043 Estimated cost of 5- yr abatement $7,565 Mr. Beitzinger introduced Mr. Mike Urbanski, President, Garden Homes, and invited him to add to the report. Mr. Urbanski said that this particular property was missed when they applied for tax abatement last year. Of those they were able to start they have 11 houses up and have contracts on 3 or 4 more in that area. Upon a motion by Mr. Caldwell, seconded by Ms. Jones and unanimously carried, the Commission approval requested for Resolution No. 1850 an application for real property tax COMMISSION APPROVAL REQUESTED FOR RESOLUTION NO. 1850 AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2834 WEST CALVERT STREET IN THE SAMPLE -EWING DEVELOPMENT AREA. (G & M PROPERTIES) South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) b. Continued... deduction for property located at 2834 West Calvert Street in the Sample -Ewing Development Area. (G & M Properties) c. Commission approval requested for Resolution No. 1851 transferring properties in Southeast Neighborhood within the Sample -Ewing Development Area to the City of South Bend Board of Public Works. Mr. Mariani explained that this resolution is part of the Redevelopment Commission's ongoing partnership with American Home Dreams and the City of South Bend. In order to complete the final phase of new home construction north of Broadway Street in the Southeast Neighborhood, the Redevelopment Commission is transferring twelve lots to the Board of Public Works for future single - family residential home construction. The lots are located along Roland Court in the northern section of the neighborhood. It is anticipated that, upon transfer of the lots to the Board of Public Works, the Board of Public Works will enter into a development agreement with a not -for- profit builder to complete the project by March 2003. There still exist some legal issues that the City of South Bend is continuing to work out with American Home Dreams, but we anticipate that those will be resolved soon. We also anticipate that the 12 homes will be completed by mid 2003. Ms. Greene added that the only action the Commission will be taking at this point is to transferr the property to the Board of Public Works. The property will remain titled to the City of South Bend until the legal issues have 9 South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) b. Continued... been resolved with American Home Dreams and there will be no transfer to American Home Dreams until those issues are resolved. The staff recommended the Redevelopment Commission approve Resolution No. 1851 transferring properties in Southeast Neighborhood to the City of South Bend Board of Public Works. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1851 transferring properties in Southeast Neighborhood within the Sample -Ewing Development Area to the City of South Bend Board of Public Works. d. Rescission of approval of proposals for professional services in the Sample -Ewing Development Area. (Appraisals, Sample - Lincolnway - Area 6) The proposal from Appraisal Specialists for appraisals on 11 properties in the amount of $2,735 was approved on September 28, 2001. The number of properties and the amount of the proposal was incorrect. Ms. Greene clarified for the record that the original proposal approved September 28, 2001 was being rescinded because properties were left off the appraisal. The staff recommended the Commission rescind its September 28, 2001 approval of the proposal from Appraisal Specialists for appraisal services in the Sample - Lincolnway - Area 6 and approve a corrected proposal. 10 COMMISSION APPROVED RESOLUTION NO. 1851 TRANSFERRING PROPERTIES IN SOUTHEAST NEIGHBORHOOD WITHIN THE SAMPLE -EWING DEVELOPMENT AREA TO THE CITY OF SOUTH BEND BOARD OF PUBLIC WORKS. South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) d. Continued... Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission rescinded approval of the proposal for professional services in the Sample -Ewing Development Area. (Appraisals, Sample - Lincolnway - Area 6) e. Commission approval requested for professional services in the Sample -Ewing Development Area. (Appraisals, Sample - Lincolnway - Area 6) The Sample - Lincolnway - Area 6 actually consists of 15 properties: Vacant lot S W corner Sample & Marietta 911 Marietta Vacant lot east and adjacent to 622 Sample 622 Sample 2 - Vacant lots south of 911 Marietta 704 Sample Vacant lot south and east of 704 Sample Vacant lot east and adjacent to 704 Sample Vacant lot west and adjacent to 714 Sample 715 Ohio Vacant lot west and adjacent to 723 Ohio 725 Ohio Vacant lot on Ohio East of 918 Marietta Vacant lot East of 715 Ohio The staff report stated that the new proposal submitted for approval from Appraisal Specialists in the amount of $3,475 is for 15 properties. The staff recommended the Commission accept the proposal for appraisal work from Appraisal Specialists for $3,475. FM Stone Commercial will do the 2 "d appraisal on the Area 6 properties. 11 COMMISSION RESCINDED APPROVAL OF THE PROPOSAL FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA. (APPRAISALS, SAMPLE - LINCOLNWAY -AREA 6) South Bend Redevelopment Commission Regular Meeting — October 19, 2001 6. NEW BUSINESS (CONT.) e. Continued... Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the proposal for professional services in the Sample -Ewing Development Area. (Appraisals, Sample - Lincolnway - Area 6) COMMISSION APPROVED THE PROPOSAL. FOR PROFESSIONAL SERVICES IN THE SAMPLE -EW[NG DEVELOPMENT AREA. (APPRAISALS, SAMPLE - LINCOLNWAY - AREA 6) f. Staff report on counter offer from Allied Products in the Sample -Ewing Development Area. Mrs. Kolata reported that on August 3, 2001 the Redevelopment Commission sent a purchase offer to Allied Products for properties at 601 West Broadway and 701 South Chapin in the amount of $10. The Redevelopment Commission has received a counter offer from Allied's attorney which excludes one portion of the property at 701 S. Chapin, namely the office building that was formerly leased to the State of Indiana for the Welfare Department. Allied's counter offer stated that they would be willing to sell the property in exchange for forgiveness of all real and personal property taxes on the two properties. They have also requested that the Redevelopment Commission indemnify Allied Products for any environmental conditions that may be found on the site, and there are a number of other items related to closing costs and they have asked that the Commission pay all those items. The staff recommends that the Commission reject this counter offer, due to it being for in excess of what we believe the property is worth. 12 South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) L Continued... Ms. Greene stated for the record that Allied Products is currently in Chapter 11 bankruptcy which is pending before the Northern District of Illinois Bankruptcy Court. There are several legal matters that the Legal Department would like to pursue through the bankruptcy process, some of which are indirectly related to the subject proposal. In addition to rejecting the counter offer from Allied Products, the Legal Department requests that the Commission authorize the Legal Department to take all necessary actions in the pending bankruptcy matter. If it is the Commission's preference, Legal suggests that the Commission move to reject the counter offer and authorize the Legal Department to take action through the bankruptcy court. Upon a motion by Mr. Caldwell, seconded by Ms. Jones and unanimously carried, the Commission rejected the Allied Products counter offer and authorized the Legal Department to take all necessary action against Allied Products through the bankruptcy court. g. Commission approval requested for professional services in the South Bend Central Development Area. (Appraisal, Michigan St. shops in the Leighton Plaza parking garage) Mr. Mathis reported that two proposals were received for appraisals of the six Michigan Street shops in the Leighton Plaza. These appraisals, if accepted, will be used to determine the current fair market rental value for these properties which are owned by the Redevelopment Commission and leased out on a 13 COMMISSION REJECTED THE ALLIED PRODUCTS COUNTER PROPOSAL AND AUTHORIZED THE LEGAL DEPARTMENT TO TAKE ACTION AGAINST SAME THROUGH THE BANKRUPTCY COURT. South Bend Redevelopment Commission Regular Meeting — October 19, 2001 6. NEW BUSINESS (CONT.) g. Continued... commercial basis. The last rental appraisal for these properties was completed in May, 1998. It is the stated policy of the Commission to obtain two new independent rental appraisals for leased property when the latest appraisals are more than three years old. The new appraisals will permit the Commission to react quickly in soliciting bids should one of the six shops become vacant over the next three years. The staff solicited proposals from a total of five appraisers and received two. The first was from R.E. Pitts & Associates, Inc, an MAI certified appraiser, in the amount of $2,000. The second was from Farrington Appraisal, Inc. for $1,200. The staff recommended that the Commission approve both proposals. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the proposal for professional services in the South Bend Central Development Area. (Appraisal, Michigan St. shops in the Leighton Plaza parking garage) h. Commission approval requested for professional services in the South Bend Central Development Area. (Appraisal - 216, 218,228 Sycamore and 305 Colfax) Before acquiring properties to support future development, title work, appraisals, and survey work are necessary. Items 6. h. and 6.i. relate to contracting for these services for properties located at 216, 218, 228 Sycamore, and 305 Colfax in the South Bend Central Development Area. 14 COMMISSION APPROVED THE PROPOSAL FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (APPRAISAL, MICHIGAN ST. SHOPS IN THE LEIGHTON PLAZA PARKING GARAGE) South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) h. Continued... Mr. Mathia reported that the staff solicited proposals from a total of five appraisers and three proposals were received. The first was from Jerome E. Michaels in the amount of $7,000. The second was from R.E. Pitts & Associates for $6,400. The third was from Farrington Appraisals, Inc. for $5,000. Mr. Pitts noted in his proposal that he had within the past year "appraised a partial interest (underlying land value) of one of the subject properties, 228 Sycamore Street, for a commercial lender for potential mortgage purposes. The appraisal was not performed for the property owner." Staff conferred with the Legal Department and they determined that this would not constitute a conflict of interest. The subject properties are commercial parcels with widely varying characteristics. Two have buildings on them and one is a parking lot. In addition, three of the properties are available for sale. A sale to someone other than the Commission could result in litigation when we try to acquire the properties. Therefore, the staff recommended that the Commission approve the proposals from the two MAI certified appraisers, Jerome E. Michaels and R.E. Pitts in the amounts of $7,000 and $6,400, respectively, for a total cost of $13,4000. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the proposal for professional services in the South Bend Central Development Area. (Appraisal - 216, 218, 228 Sycamore and 305 Colfax) 15 COMMISSION APPROVED THE PROPOSAL FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (APPRAISAL - 216, 218, 228 SYCAMORE AND 305 COLFAX) South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) i. Commission approval requested for professional services in the South Bend Central Development Area. (Survey - 216, 218, 228 Sycamore and 305 Colfax) The staff report states that proposals were solicited and received proposals from three surveying firms. The first was from Wightman Petrie, Inc., in the amount of $4,500. The second was from Lang, Feeney & Associates for $1,950. The third was from Danch, Hamer & Associates, Inc., for $1,175. The staff recommended the Commission approve the proposal from Danch, Harper & Associates, Inc., for $1,175. Upon a motion by Mr. Caldwell, seconded by Mr. Kahn and unanimously carried, the Commission approved the proposal from Danch, Hamer & Associates for professional services in the South Bend Central Development Area. (Appraisal - 216, 218, 228 Sycamore and 305 Colfax) j. Commission approval requested for the First Amendment to the Lease Assignment in the South Bend Central Development Area. ( Espirit Decor - Michigan St.) Mr. Mathia explained that the owners of Espirit Decor have requested an amendment to their lease to permit them to lease an additional 305 square feet of floor space for their store. The space is located behind Laura Lee's. Laura Lee's and Espirit Decor are adjacent storefronts in the Commission -owned Michigan Street Shops. The property in question is small and only accessible through the parking garage in back of the shops, making it inconvenient for 16 COMMISSION APPROVED THE PROPOSAL FROM DANCH, HARNER & ASSOCIATES FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (APPRAISAL - 216, 218, 228 SYCAMORE AND 305 COLFAX) South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) j. Continued... public use. Espirit Decor intends to use the property for storage. The terms proposed for the lease amendment were negotiated between the Commission's property manager, C.B. Richard Ellis and Espirit Decor. They are based on the present lease with Espirit Decor and current conditions found in the commercial real estate market. The staff reviewed the terms and found them to be acceptable. Therefore, the staff recommended the Commission approve the terms of the amendment and authorize the Legal Department to prepare and submit a lease amendment to the Commission for signature based on those terms. CW Upon a motion by Mr. Caldwell, seconded by Mr. Kahn and unanimously carried, the Commission approved the First Amendment to the Lease Assignment in the South Bend Central Development Area with Espirit Decor in the Michigan St. Shops. Mr. Inks requested that item 6.v., 6.w. and 6.x. be addressed at this time. There was no objection and the items were expedited. v. Commission approval requested for Third Amendment to the Redevelopment Commission Agreement for property located at 348 Columbia Street. (Crowe Chizek) Ms. Greene explained that 6.v., 6.w. and 6.x., are related. She noted that noted that the Department of Community and Economic Development has negotiated a Redevelopment Agreement with Press Ganey which allows them to expand their business in downtown South Bend. They currently have 238 employees with 17 COMMISSION APPROVED THE FIRST AMENDMENT TO THE LEASE ASSIGNMENT IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA WITH ESPIRIT DECOR IN THE MICHIGAN ST. SHOPS South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) v. Continued... an average salary of $35,000. With the two - phased project set out in the Agreement Press Ganey is expected to add 190 new jobs by 2004 at an average salary of $36,000. As part of the expansion process for Press Ganey, we have been working with Crowe Chizek which is also in the River Glen Office Campus. As part of a comprehensive plan for that area, we have agreed to acquire some land from Crowe Chizek which will facilitate the redevelopment project with Press Ganey. Consequently, we have a Redevelopment Agreement with Crowe Chizek which we will be amending as part of some of the investment the City will be taking with respect to changes in the River Glen Office Campus. We're requesting that the Commission approve an amended Redevelopment Agreement between Crowe Chizek and the Commission (The Third Amendment to that agreement); we also request that the Commission approve a contract for Purchase and Sale of Land which relates to property at 348 Columbia Street, currently owned by Crowe Chizek, but will ultimately be used to facilitate the Press Ganey expansion project; and, finally, to approve the Redevelopment Agreement between Press Ganey and the Commission. Dick Mintz and Mel Hall, Press Ganey. Mr. Mintz expressed appreciation for the cooperation of the City representatives from Community and Economic Development and the Legal Department. They did a good job of trying to understand Press Ganey's needs and address them in the negotiation process. 18 South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) v. Continued... Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the Third Amendment to the Redevelopment Commission Agreement for property located at 348 Columbia Street. (Crowe Chizek) w. Commission approval requested for Contract for Purchase and Sale of Real Estate for property located at 348 Columbia Street. (Crowe Chizek) Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the Contract for Purchase and Sale of Real Estate for property located at 348 Columbia Street. (Crowe Chizek) x. Commission approval requested for Redevelopment Agreement. (Press Ganey) Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the Redevelopment Agreement with Press Ganey. k. Commission approval requested for the Agreement to Assume Lease and Consent to Assumption of Lease Assignment in the South Bend Central Development Area. (Copiers Plus - Michigan St.) Mr. Mathia explained that the Agreement to Assume Lease and Consent to Assumption of Lease Assignment allows Copiers Plus to assume the lease that was formerly held by Precise Audio. Precise Audio abandoned the building in late August or early September. 19 COMMISSION APPROVED THE THIRD AMENDMENT TO THE REDEVELOPMENT COMMISSION AGREEMENT FOR PROPERTY LOCATED AT 348 COLUMBIA STREET. (CROWE CHIZEK) COMMISSION APPROVED THE CONTRACT FOR PURCHASE AND SALE OF REAL ESTATE FOR PROPERTY LOCATED AT 348 COLUMBIA STREET. (CROWE CHIZEK) COMMISSION APPROVED THE REDEVELOPMENT AGREEMENT WITH PRESS GANEY. South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) k. Continued... Copiers Plus will use the building to set up an extension of their copying business in downtown South Bend. They moved into the store on October 1 and are in the process of setting up business. Ms. Greene noted that the Agreement to Assume Lease and Consent to Assumption of Lease Assignment includes the First amendment of Lease which was approved at the September 28, 2001, meeting of the Redevelopment Commission. At that meeting, the Redevelopment Commission consented to Copiers Plus' assumption of the Precise Audio Lease for one year, as a trial period. They also agreed to keep an open mind when considering renewal of the lease after one year. Copiers Plus similarly agreed to keep an open mind towards moving to a property the Commission deems more acceptable when the one -year lease expires. Upon a motion by Mr. Caldwell, seconded by Mr. Kahn and unanimously carried, the Commission approved the Agreement to Assume Lease and Consent to Assumption of Lease Assignment in the South Bend Central Development Area. ( Copiers Plus - Michigan St.) 1. Commission approval requested for Agreement for Extension of Facilities to Supply Gas Service in the Airport Economic Development Area. (Lone Wolf Enterprises - Olive Road Commerce Park, Section II from NIPSCO) 20 COMMISSION APPROVED THE AGREEMENT TO ASSUME LEASE AND CONSENT To ASSUMPTION OF LEASE ASSIGNMENT IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. ( COPIERS PLUS - MICHIGAN ST.) South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) 1. Continued... Mr. Case explained that the next step in the Lone Wolf Enterprises -Olive Road Commerce Park, Section II Project is to extend NIPSCO gas service to the project area. The cost is $7,916. This money will be reimbursed to the City as customers are added to the service. Upon a motion by Mr. Caldwell, seconded by Ms. Jones and unanimously carried, the Commission approved the Agreement for Extension of Facilities to Supply Gas Service in the Airport Economic Development Area. (Lone Wolf Enterprises -Olive Road Commerce Park, Section II from NIPSCO) m. Commission approval requested for Certificate of Waiver for property located at 1014 Eddy Street. (Norman L. & Deborah Buckman) Mr. Inks explained that under the terms of the Rental Rehab Program 10% of the loan is forgiven each year if certain conditions are met. This Certificate of Waiver forgives $789 of the loan as of August 31, 2001. Upon a motion by Ms. Jones, seconded by Mr. Caldwell and unanimously carried, the Commission approved the Certificate of Waiver for property located at 1014 Eddy Street. (Norman L. & Deborah Buckman) n. Commission approval requested for Loan and Grant in accordance with the Affordable Loan Program for property located at 719 E. Haney Street. (Willia M. Sanchez) 21 COMMISSION APPROVED THE AGREEMENT FOR EXTENSION OF FACILITIES TO SUPPLY GAS SERVICE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (LONE WOLF ENTERPRISES -OLIVE ROAD COMMERCE PARK, SECTION II FROM NIPSCO) COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR PROPERTY LOCATED AT 1014 EDDY STREET. (NORMAN L. & DEBORAH BUCKMAN) South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) n. Continued... Mr. Inks noted that the loan is for $4,000, due upon sale of property, with an interest rate of 0 %. The grant is for $7,500 Mr. Hunt questioned the practice of loaning money to an elderly person on an extended term. Ms. Tomchak explained that the HDC cannot discriminate on the basis of age. They determine the discretionary income available and assign the monthly payment accordingly. The loan is a lien on the home, so when the house is sold it will be paid off. Upon a motion by Ms. Jones, seconded by Mr. Caldwell and unanimously carried, the Commission approved the Loan and Grant in accordance with the Affordable Loan Program for property located at 719 E. Haney Street. (Willia M. Sanchez) o. Commission approval requested for Loan and Grant in accordance with the Affordable Loan Program for property located at 1023 Emerson Avenue. (Anna M. Harringer) Mr. Inks noted that the loan is for $3,250 to be repaid in the amount of $54.17 per month for 60 months with an interest rate of 0 %. The grant is for $3,074.50. Upon a motion by Ms. Jones, seconded by Mr. Caldwell and unanimously carried, the Commission approved the Loan and Grant in accordance with the Affordable Loan Program for property located at 1023 Emerson Avenue. (Anna M. Harringer) 22 COMMISSION APPROVED THE LOAN AND GRANT IN ACCORDANCE WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 719E. HANEY STREET. (WILLIAM. SANCHEZ) COMMISSION APPROVED THE LOAN AND GRANT IN ACCORDANCE WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 1023 EMERSON AVENUE. (ANNA M. HARRINGER) South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) p. Commission approval requested for Loan and Grant in accordance with the Affordable Loan Program for property located at 1914 Beverly Place. (Carole E. Jones) Mr. Inks noted that the loan is for $6,200 to be repaid in the amount of $84.75 per month for 84 months with an interest rate of 4 %. The grant is for $2,567.40. Upon a motion by Ms. Jones, seconded by Mr. Caldwell and unanimously carried, the Commission approved the Loan and Grant in accordance with the Affordable Loan Program for property located at 1914 Beverly Place. (Carole E. Jones) q. Commission approval requested for Loan AVIN and Grant in accordance with the Affordable Loan Program for property located at 1533 McPherson Street. (Angeline A. Sappington) Mr. Inks noted that the loan is for $6,050 to be repaid in the amount of $61.25 per month for 120 months with an interest rate of 4 %. The grant is for $3,907.20. Upon a motion by Ms. Jones, seconded by Mr. Caldwell and unanimously carried, the Commission approved the Loan and Grant in accordance with the Affordable Loan Program for property located at 1533 McPherson Street. (Angeline A. Sappington) r. Commission approval requested for Assignment and Assumption of Contract for Sale of Land for Private Development in the Airport Economic Development Area. (Dynamic Fab to Koontz/Wagner) 23 COMMISSION APPROVED THE LOAN AND GRANT IN ACCORDANCE WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 1914 BEVERLY PLACE. (CAROLE E. JONES) COMMISSION APPROVED THE LOAN AND GRANT IN ACCORDANCE WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 1533 MCPHERSON STREET. (ANGELINE A. SAPPINGTON) South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) r. Continued... Mr. Case noted that Koontz Wagner wants to take over the Contract for Sale of Land that was approved for Dynamic Fab. Dynamic Fab has never completed the project and has never received a certificate of completion. Koontz Wagner will take responsibility to develop the site. The following item 6.s. amends the Contract for Sale to add site modifications to the existing building and lots. Paul Witek noted that this will be Koontz Wagner's third expansion of its industrial facilites in South Bend. This project will be a 20,000 sft expansion on Voorde Drive. They will be vacating their current location and moving their entire operation to the new location. Upon a motion by Mr. Caldwell, seconded by Ms. Jones and unanimously carried, the Commission approved the Assignment and Assumption of Contract for Sale of Land for Private Development in the Airport Economic Development Area. (Dynamic Fab to Koontz/Wagner) s. Commission approval requested for First Amendment to the Contract for Sale of Land for Private Development in the Airport Economic Development Area. (Koontz/Wagner) Upon a motion by Ms. Jones, seconded by Mr. Caldwell and unanimously carried, the Commission approved the Contract for Sale of Land for Private Development in the Airport Economic Development Area. (Koontz/Wagner) 24 COMMISSION APPROVED THE ASSIGNMENT AND ASSUMPTION OF CONTRACT FOR SALE OF LAND FOR PRIVATE DEVELOPMENT IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (DYNAMIC FAB TO KOONTZ/WAGNER) COMMISSION APPROVED THE CONTRACT FOR SALE OF LAND FOR PRIVATE DEVELOPMENT IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (KOONTZ /WAGNER) South Bend Redevelopment Commission Regular Meeting— October 19, 2001 6. NEW BUSINESS (CONT.) t. Commission approval requested for Satisfaction of Obligations and Release of Mortgage for property located at 1014 Eddy Street. (Norman Buckman) Mr. Inks noted that items 61 and 6.u. are related to the Rental Rehab Loan Program. After ten years of payment waivers, the obligation of the borrower is satisfied and we release the mortgage on the property. Upon a motion by Ms. Jones, seconded by Mr. Caldwell and unanimously carried, the Commission approved the Satisfaction of Obligations and Release of Mortgage for property located at 1014 Eddy Street. (Norman Buckman) u. Commission approval requested for Satisfaction of Obligations and Release of Mortgage for property located at 712 North Lindsay. (Louis & Mary Seago) Upon a motion by Ms. Jones, seconded by Mr. Caldwell and unanimously carried, the Commission approved the Satisfaction of Obligations and Release of Mortgage for property located at 712 North Lindsay. (Louis & Mary Seago) 7. PROGRESS REPORTS Mr. Rock introduced a new Redevelopment staff member, Gary Overmier. Gary will be working on brownfields development with Ann Kolata. The Redevelopment Commission welcomed him to the staff. 25 COMMISSION APPROVED THE SATISFACTION OF OBLIGATIONS AND RELEASE OF MORTGAGE FOR PROPERTY LOCATED AT 1014 EDDY STREET. (NORMAN BUCKMAN) COMMISSION APPROVED THE SATISFACTION OF OBLIGATIONS AND RELEASE OF MORTGAGE FOR PROPERTY LOCATED AT 712 NORTH LINDSAY. (LOUIS & MARY SEAGO) 1[q 0 r� South Bend Redevelopment Commission Regular Meeting— October 19, 2001 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for November 2, 2001 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. Mr. Caldwell seconded the motion and the meeting was adjourned at 10:45 a.m. Robert W. Hunt, President 26 NEXT COMMISSION MEETING ADJOURNMENT Donald E. Inks, Direc or