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HomeMy WebLinkAbout08-17-01 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 17, 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. Philip J. Faccenda, Secretary Mr. Matt Kahn Mr. James Caldwell Ms. Cheryl Greene Redevelopment Staff: Mr. Donald Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Owen Rock, Assistant Director Mr. Bill Schalliol, Economic Development Specialist Mr. Robert Mathia, Economic Development Specialist Others Present: Mr. Tim Lehman, Operations Manager, Verizon Wireless Mr. Jack Hofferth Mr. Dennis Rhoads Mr. Jim Groves, Attorney -At -Law 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of July 20, 2001. Ms. Greene noted that these minutes were delayed due to a public hearing which was quite extensive to transcribe. Ms. Jones noted that Mr. Ty Putrich, South Bend Lathe, was present at the July 20, 2001 meeting and asked that the minutes be corrected by adding his name. 1 South Bend Redevelopment Commission Regular Meeting— August 17, 2001 2. APPROVAL OF MINUTES (CONT.) a. Continued... Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the Minutes of the Regular Meeting of July 20, 2001, as corrected. b. Commission approval of the Minutes of the Regular Meeting of August 3, 2001. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the Minutes of the Regular Meeting of August 3, 2001. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF JULY 20,200 1, AS CORRECTED. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF AUGUST 3,200 1. Redevelopment Commission Claims submitted August 17, 2001 for approval. 212 CDBG COMMUNITY DEVELOPMENT South Bend Tribune $ 162.14 Petty Cash 96.70 Baker & Daniels 503.00 First USA Financial Services 40.00 324 FUND Rieth -Riley Construction Co. 569.25 Acme Sales Company 2,200.00 Owners' Association at Blackthorn, Inc. 13,730.30 Shamrock Network Design 150.00 Abonmarche Consultants 1,875.00 Grade - Rite Excavating, Inc. 5,240.00 Williams Aerial and Mapping, Inc. 1,900.00 Small Inc. 194,422.25 2 South Bend Redevelopment Commission Regular Meeting— August 17, 2001 3. APPROVAL OF CLAIMS (CONT.) 420 SBCDA Metropolitan Title - Indiana, L.L.0 700.00 Madison Center and Hospital 5,000.00 Edge's Lawn Care 250.00 Edward J. White, Inc. 23,468.80 424 TIF SBCDA- BUILDING OPERATIONS AEP 1,898.05 South Bend Water Works 154.84 CB Richard Ellis 551.40 Rose Exterminator 42.00 C & S Service, Inc. 1,285.89 619 BLACKTHORN Meadowbrook Golf Group, Inc. 7,450.00 $ 262,884.82 Upon a motion by Mr. Faccenda, seconded by Mr Kahn and unanimously carried, the Commission approved the Claims submitted August 17, 2001, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 3 COMMISSION APPROVED THE CLAIMS SUBMITTED AUGUST 17,200 1, AND ORDERED THE CHECKS TO BE RELEASED. THERE WERE NO COMMUNICATIONS. THERE WAS NO OLD BUSINESS. South Bend Redevelopment Commission Regular Meeting— August 17, 2001 6. NEW BUSINESS a. Public Hearing on Resolution No. 1843 amending the South Bend Central Development Area Development Plan. Ms. Greene entered the following items into the record: 1) an original of the "Notice of Hearing of the Amendment to the South Bend Central Development Area Development Plan"; 2) an affidavit from Carol Smith, Advertising Manager of the South Bend Tribune, that the Notice of Hearing was published in that daily newspaper on August 3, 2001; 3) an affidavit from Richard J. Andrysiak, Classified Manager of the Tri- County News, that the Notice of Hearing was published in that weekly newspaper on August 3, 2001; 4) a copy of Resolution No. 1843, which is the subject of the public hearing; 5) a memo from Mr. Bob Mathia that on August 3, 2001, copies of the Notice of Public Hearing were sent to the affected property owners and registered neighborhood associations; 6) as of 10:00 a.m. EST on August 17, 2001, 1 written remonstrance was received from Attorney James F. Groves representing Verizon Wireless, Inc., the property owner at 220 and 222 East Sycamore. The remonstrance was timely, is attached hereto, and incorporated into the record in its entirety, as Exhibit A. Verizon Wireless, in their remonstrance, raised issues with respect to the public purpose and public use, which is in keeping with their rights under Indiana law. Verizon Wireless, in their remonstrance, raised an additional issue that the Legal Department would like the opportunity to further review. Ms. Greene quoted from the remonstrance letter: 4 South Bend Redevelopment Commission Regular Meeting— August 17, 2001 6. NEW BUSINESS (CONT.) a. Continued... other governmental agencies overseeing public communications systems. The dictates of these agencies may supercede the Redevelopment Commission's authority in this case, thereby negating the Commission's ability to take these two lots. Ms. Greene asked that the Redevelopment Commission allow her an opportunity to research this particular issue without taking final action on the remonstrance today. Ms. Greene recommended that the Commission hold the public hearing as advertised, but carry over final action on Resolution No. 1843 until the Legal Department has had the opportunity to review these issues. Mr. Hunt asked the staff to make a presentation regarding Resolution No. 1843. Mr. Mathia explained that Resolution No. 1843 amends the property acquisition list in the Development Plan for the South Bend Central Development Area by adding eleven new parcels. All but two of the parcels are located near or along Sycamore Street on the East Bank. The lack of readily available parking is becoming a hindrance to commercial development in the area. The parking problem will be magnified by the planned improvements and renovations on the Commerce Center and other nearby locations. The Sycamore properties will be acquired in order to provide parking to support future commercial development. The additional parking can also 5 South Bend Redevelopment Commission Regular Meeting— August 17, 2001 6. NEW BUSINESS (CONT.) a. Continued... be used during non - business hours by the general public using the Riverwalk and East Race facilities. Assuming funding is in place, and the anticipated development occurs as planned, acquisition will begin before the end of the year. The two remaining parcels are located in the River Glen Office Park. The acquisition of these two parcels are an integral component of our evolving program to further strengthen and expand commercial development in the office park. Acquisition of these parcels is expected to occur within the year. Mr. Hunt noted that the remonstrance was from Verizon Wireless, but the owner's name on Exhibit A of Resolution No. 1843 is listed as United Tele Spectrum of Indiana Inc. He asked what the relationship was between the two companies. Ms. Greene noted that Verizon Wireless is the title owner and successor -in- interest of United Tele Spectrum of Indiana, Inc. Mr. Hunt opened Public Hearing on Resolution PUBLIC HEARING ON RESOLUTION No. 1843 No. 1843 for whoever wished to speak. MR. GROVES: I am Jim Groves on behalf of Verizon. Verizon is the successor -in- interest. About a year ago there was a transfer of ownership. The notice went to [United Tele Spectrum of Indiana, Inc.] our predecessor. I wanted to address a couple of new things that I raised in the remonstrance letter, because it was a last minute knee-jerk thing that was done about 5:00 last night. So I don't want the 0 South Bend Redevelopment Commission Regular Meeting— August 17, 2001 6. NEW BUSINESS (CONT.) a. Continued... Commission to feel threatened by the threat of legal litigation here over some issue. I've had to raise some issues in the letter. We did not receive formal notice, but we're waiving that at this time, now that we have the opportunity to be heard this morning. The primary problem with which we are confronted is that this is a tower and it involves wireless communication. This tower happens to be the hub of communication. Everything flows through this, countywide, for our communications system. So, the location here is eminently important and the presence of the tower is very important to the communications system. If the tower is removed and there is an interruption of service, I'm sure you can imagine the problems that this could cause. Our endeavor, at this point, is a preliminary notion, here, because we haven't had too much time to think about this, and in fact got the notice by accident. But, our endeavor will be to research and work with you [the Commission] on what we can do to continue service in similar location that will not interrupt service. As I informed my people, I think we're really talking about at least six months down the road before anything would develop physically on this. So, we're not here to become adversaries with you, but we'd like to research the solution, so that we can avoid interruption of service. The issues that I've raised in the letter are clear. In the letter, I have raised, as a preliminary matter, the thought that we are a public utility, and whether any federal laws might supercede the Redevelopment Commission's ability to condemn this particular 7 South Bend Redevelopment Commission Regular Meeting— August 17, 2001 6. NEW BUSINESS (CONT.) a. Continued... piece of property for redevelopment. I want to raise that as an issue simply to preserve that avenue down the road. So, we are not here to do battle with you [the Commission], we're here to just get things on record and protect any rights that we may have down the road. MR. HUNT: Is there anyone else from the public who wishes to speak? MR. GROVES: Mr. Lehman, our Operations Manager, is here if anyone has any questions about anything. MR. HUNT: Mr. Lehman do you have anything to add? MR. LEHMAN: No, Mr. Groves did a good job on that. MR. GROVES: Well thank you, Mr. Lehman. MR. HUNT: Is there anybody else from the public wishing to speak regarding this resolution? There was no one else who wished to speak regarding Resolution No. 1843, so Mr. Hunt closed the Public Hearing. Mr. Hunt asked if the Commissioners had any questions regarding Resolution No. 1843. Ms. Greene reiterated that it was the Legal Department's recommendation, based on the 8 South Bend Redevelopment Commission Regular Meeting— August 17, 2001 6. NEW BUSINESS (CONT.) a. Continued... issues that Mr. Groves raised on behalf of his client, that the Commission give her the time to research the public utility aspect of the remonstrance and not take action on the resolution with respect to this property at this time. Mr. Hunt said that if there were no further questions from the Commission, he would suggest that the Commission defer final action on Resolution No. 1843 to the September 7, 2001 meeting. Mr. Hunt assured the Verizon group that the Commission has "no interest at all" in interfering with their business. However, he was informed, that prior to the original raising of the tower, the staff cautioned the owners that the property was within a development area, and at some time in the future it might be considered for acquisition. The Commission will research and take whatever steps are necessary to try to accommodate them. b. Commission approval requested for Resolution No. 1843. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission decided to carry over Resolution No. 1843 to the meeting of September 7, 2001. C. Commission approval requested for professional services in the Airport Economic Development Area. (Demolition of house at 52738 Olive Road) 6 COMMISSION DECIDED TO CARRY OVER RESOLUTION No. 1843 TO THE MEETING OF SEPTEMBER 7, 2001. South Bend Redevelopment Commission Regular Meeting— August 17, 2001 6. NEW BUSINESS (CONT.) c. Continued... Mr. Rock noted that the Fire Department has used the house at 52738 Olive Road for training. We now want to demolish it. Three proposals were received for demolition. One was from Grade -Rite Excavating, Inc., in the amount of $5,600. The second was from Warner & Sons, Inc., in the amount of $5,240. The third was from Torok Excavating & Demolition Inc., in the amount of $7,300. The staff recommended the Commission accept the proposal from Warner & Sons, Inc. Mr. Rock noted that the Fire Department would like to thank the Redevelopment Commission for the use of this house for training. It was very helpful to them. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the proposal from Warner & Sons for professional services in the Airport Economic Development Area. (Demolition of house at 52738 Olive Road) d. Commission approval requested for Loan and Grant in accordance with the Affordable Loan Program for property located at 3210 Boynton Avenue. (Loretta Williams) Mr. Rock noted that the loan is for $4,150 to be repaid within 60 months and with an interest rate of 5 %. The grant is for $1,592. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the Loan and Grant in accordance with the Affordable Loan Program for property located at 3210 Boynton Avenue. (Loretta Williams) 10 COMMISSION APPROVED THE PROPOSAL FROM WARNER & SONS FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (DEMOLITION OF HOUSE AT 52738 OLIVE ROAD) COMMISSION APPROVED THE LOAN AND GRANT IN ACCORDANCE WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 3210 BOYNTON AVENUE. (LORETTA WILLIAMS) South Bend Redevelopment Commission Regular Meeting— August 17, 2001 7. PROGRESS REPORTS There were no Progress Reports. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for September 7, 2001 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, Mr. Faccenda made a motion that the meeting be adjourned. Mr. Kahn seconded the motion and the meeting was adjourned at 10:18 a.m. Robert W. Hunt, President September 4, 2001 1:25 pm 11 Donald E. Inks, Director August 16, 2001 HARING, LEE AND GRDVES PROFE88IONAL ASSOCIATION ATTORNEYS AND COUNSELLORS SUITE 502 205 WEST JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601 -1812 Donald E. Inks, Director Division of Economic Development 1200 County -City Building South Bend, Indiana 46601 -1830 Re: Verizon Wireless - Resolution No. 1843 Dear Mr. Inks: TELEPHONE (219) 232 -5923 FAX (219) 23L -5942 Please be advised that I represent Verizon Wireless, Inc. which received a notice of a public hearing on a proposed amendment to the South Bend Central Development Area development plan which involves two lots and improvements owned by Verizon Wireless, Inc. at 220 East Side of Sycamore Street and 222 East Side of Sycamore Street. Verizon Wireless, Inc. is the title owner and successor - in- interest of United Tele Spectrum of Indiana, Inc. Verizon Wireless is a company which provides South Bend and other areas with telephonic communications not requiring a direct wire connection to the broader telephone system. This `wireless' communication system is provided by, among other things, the use of towers which relay communication signals to a localized area, thereby negating the necessity for direct wire connection to an individual's telephone. These towers are fundamental to the proper working of the system. When an area lacks a tower that area, in turn, lacks the ability to have wireless communication capabilities. Verizon Wireless, Inc. has placed such a communications tower on the two lots at 220 and 222 East Side of Sycamore Street. This tower provides the downtown area of South Bend with wireless communications capabilities on the Verizon Wireless communications system The taking of these two lots, and the commensurate destruction ofthe tower, will seriously disrupt wireless phone service in the downtown area. The numerous South Bend customers of Verizon Wireless will suffer a loss that cannot be compensated. The taking of the property and the tower, without providing suitable replacement property, could virtually eliminate Verizon service to the downtown South Bend area because this tower primarily EDWARD W. HARDIG ROBERT D. LEE JAMES F. GROVES JAMES P. EHRHARD DAVID E. BALLARD OF COUNSEL August 16, 2001 HARING, LEE AND GRDVES PROFE88IONAL ASSOCIATION ATTORNEYS AND COUNSELLORS SUITE 502 205 WEST JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601 -1812 Donald E. Inks, Director Division of Economic Development 1200 County -City Building South Bend, Indiana 46601 -1830 Re: Verizon Wireless - Resolution No. 1843 Dear Mr. Inks: TELEPHONE (219) 232 -5923 FAX (219) 23L -5942 Please be advised that I represent Verizon Wireless, Inc. which received a notice of a public hearing on a proposed amendment to the South Bend Central Development Area development plan which involves two lots and improvements owned by Verizon Wireless, Inc. at 220 East Side of Sycamore Street and 222 East Side of Sycamore Street. Verizon Wireless, Inc. is the title owner and successor - in- interest of United Tele Spectrum of Indiana, Inc. Verizon Wireless is a company which provides South Bend and other areas with telephonic communications not requiring a direct wire connection to the broader telephone system. This `wireless' communication system is provided by, among other things, the use of towers which relay communication signals to a localized area, thereby negating the necessity for direct wire connection to an individual's telephone. These towers are fundamental to the proper working of the system. When an area lacks a tower that area, in turn, lacks the ability to have wireless communication capabilities. Verizon Wireless, Inc. has placed such a communications tower on the two lots at 220 and 222 East Side of Sycamore Street. This tower provides the downtown area of South Bend with wireless communications capabilities on the Verizon Wireless communications system The taking of these two lots, and the commensurate destruction ofthe tower, will seriously disrupt wireless phone service in the downtown area. The numerous South Bend customers of Verizon Wireless will suffer a loss that cannot be compensated. The taking of the property and the tower, without providing suitable replacement property, could virtually eliminate Verizon service to the downtown South Bend area because this tower primarily serves the citizens of this locale. Additionally, Verizon Wireless, Inc. is of the understanding that this property is being sought for taking so that a parking lot can be built on the property. This purpose does not provide the Commission with the proper authority to acquire the property as the required public purpose does not exist. The disruption and probable elimination of wireless telephone service to a large population section of South Bend easily outweighs any public good existing in the construction of a parking lot. It should also be noted that Verizon Wireless, Inc. is of the character of a public utility licensed by the Federal Communications Commission and other governmental agencies overseeing public communications systems. The dictates of these agencies may supercede the Redevelopment Commission's authority in this case, thereby negating the Commission's ability to take these two lots. Very,4Truly Yours, F. Groves JFG:kv cc: Verizon Wireless, Inc.