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Home My WebLink About06-15-01 Redevelopment Commission MinutesLl LIM SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING June 15, 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 Mr. Philip J. Faccenda, Secretary Mr. Matt Kahn Mr. James Caldwell Ms. Marcia Jones, Vice - President Ms. Cheryl Greene Redevelopment Staff: Mr. Donald Inks, Director Mrs. Cheryl Phipps, Recording Secretary 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. Mike Beitzinger, Economic Development Specialist Mrs. Lorraine Mauk Others Present Mr. Richard Deahl, Barnes and Thornburg Mr. Jerry Christensen, Bowne Inc. Mr. Dan Smith, Bowne Inc. Ms. Wendy Walker, Legal Intern Mr. Steve Ellison, The Stone Group Mr. Hunt noted that the Executive Session will reconvene immediately following the adjournment of the Regular Meeting. 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of May 18, 2001. 1 South Bend Redevelopment Commission Regular Meeting —June 15, 2001 2. APPROVAL OF MINUTES (CONT.) Upon a motion by Mr. Caldwell, seconded by Mr. Hunt and unanimously carried, the Commission approved the Minutes of the Regular Meeting of May 18, 2001. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF MAY 18,200 1. Redevelopment Commission Claims submitted June 15, 2001 for approval. 212 CDBG COMMUNITY DEVELOPMENT South Bend Tribune $177.20 General Fund - Telephone $150.08 Ann Kolata $119.05 324 FUND Sopko, Nussbaum, Inabnit $64.00 CW Commissioner of Patents and Trademarks $325.00 Abonmarche Group $11,360.00 Makielski Art Shop $61.15 Boise Cascade $212.49 Meridian Title Corp $755.00 414 SAMPLE -EWING FUND Petty Cash $26.00 Jerome E. Michaels $2,400.00 Patton Boggs L.L.P. $2,745.93 Hull & Associates, Inc. $7,658.25 Grauvogel & Associates $350.00 CFH Landscape Services $6,737.50 420 SBCDA Baker & Daniels $69.00 Dominiack Mechanical, Inc. $1,496.55 Edges Lawn Care $250.00 City Chapel $155,000.00 424 TIF SBCDA- BUILDING OPERATIONS AEP $555.01 2 South Bend Redevelopment Commission Regular Meeting —June 15, 2001 3. APPROVAL OF CLAIMS (CONT.) Rose Exterminator Co. CB Richard Ellis NIPSCO South Bend Water Works Total All Claims Upon a motion by Mr. Kahn, seconded by Mr. Caldwell and unanimously carried, the Commission approved the Claims submitted June 15, 2001, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS a. Commission approval requested for Resolution No. 1837 a resolution related to the Acquisition of Property in the Sample - Ewing Development Area by eminent domain. (Former Stamping Plant & Oliver Plow Works) Mr. Inks requested that this item be tabled. There was no objection and item 5.a. was tabled. 6. NEW BUSINESS Mr. Inks requested that item 6.i. be added to the agenda. There was no objection and the item was added. a. Commission approval requested for Resolution No.1838 approving an application for personal property tax deduction for property located at 5021 Nimtz Parkway in 3 $84.00 $1,501.61 $6.07 156.32 $192,260.21 COMMISSION APPROVED THE CLAIMS SUBMITTED JUNE 15, 2001, AND ORDERED THE CHECKS TO BE RELEASED. THERE WERE NO COMMUNICATIONS. ITEM 5.A. WAS TABLED. South Bend Redevelopment Commission Regular Meeting —June 15, 2001 6. NEW BUSINESS (CONT.) a. continued... the Airport Economic Development Area. (Bowne of South Bend, Inc.) The staff report states that Bowne is a commercial and financial, state of the art printing facility. They combine advanced prepress technology with modern printing presses and finishing equipment that cut, fold, stitch, perfect bind and package products for delivery. This project calls for the acquisition and installation of telecommunications hardware, prepress and plate making equipment, Web and related printing presses, splicers, cutters, folders and automated stitching equipment. Investment in this equipment will enable Bowne to meet the demands of expanding financial markets and bolster its competitive position within the commercial printing industry. The total cost of the new equipment is estimated to be between $1,200,000 and $1,500,000. Per the petition, it is estimated that this project will create nineteen (19) new, permanent, full - time jobs representing a new annual payroll of $800,000 (an average of $42,105). The project will also maintain one hundred and nineteen (119) existing permanent full time jobs representing an annual payroll of $5,731,000 (an average of $48,160). A review of the tax abatements previously granted finds that the petitioner has been granted two previous tax abatements, a ten year real property abatement and a five year personal L, South Bend Redevelopment Commission Regular Meeting —June 15, 2001 6. NEW BUSINESS (CONT.) a. continued... property abatement. The petitioner is in compliance with the reporting requirements for the previous abatements. The property is properly zoned for the proposed project and 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. A review of the Tax Abatement Ordinance finds that the petitioner meets the qualifications for a five (5) year personal property tax abatement. Based on a projected project cost of $1,200,000 the total estimated taxes on the project without abatement would be approximately $123,663. With abatement the taxes would be approximately $42,326. Therefore the cost of the abatement would be approximately $81,337. Based on a projected project cost of $1,500,000 the total estimated taxes on the project without abatement would be approximately $154,578. With abatement the taxes would be approximately $52,907. Therefore the cost of the abatement would be approximately $101,671. Mr. Christensen, Bowne, Inc., said the projected 19 new jobs is a conservative estimate. If the New York Stock Exchange rebounds, as it is expected to at the end of this year, they could experience a greater demand. 5 South Bend Redevelopment Commission Regular Meeting —June 15, 2001 6. NEW BUSINESS (CONT.) a. continued... He also indicated the local work force is ideal for their needs. They are willing to train a trainable workforce. Upon a motion by Mr. Kahn, seconded by Mr. Caldwell and unanimously carried, the Commission approved Resolution No. 1838 approving an application for personal property tax deduction for property located at 5021 Nimtz Parkway in the Airport Economic Development Area. (Bowne of South Bend, Inc.) b. Staff report on Acquisition of property in the Airport Economic Development Area. (Smous & Pesce Properties) Mr. Rock explained that these are two (2) of the five (5) properties covered by last year's policy regarding Olive Road. Sally Smous has agreed to a purchase price of $108,250. Ryan and Mariette Pesce have agreed to a purchase price of $93,750. The properties are needed to make future improvements to Olive Road. Closing is expected to be at the end of this year or first of next year, after the properties are annexed. Upon a motion by Mr. Faccenda, seconded by Mr. Caldwell and unanimously carried, the Commission approved the Acquisition of property in the Airport Economic Development Area. (Smous & Pesce Properties) ,:01 COMMISSION APPROVED RESOLUTION NO. 1838 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 5021 NIMTZ PARKWAY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (BOWNE OF SOUTH BEND, INC.) COMMISSION APPROVED THE ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting —June 15, 2001 6. NEW BUSINESS (CONT.) c. Commission approval requested for professional services in the Airport Economic Development Area. (Abandon Water Well, U.S. 31 Industrial Park) Mr. Case explained that a house at 23873 Brick Road is scheduled for demolition as part of the U.S. 31 Industrial Park, Phase II road project. The contractor for the demolition does not abandon wells. S.J. Tatay Drilling Contractor, Inc., submitted a proposal to do the work at a cost of $500. Upon a motion by Mr. Caldwell, seconded by Mr. Kahn and unanimously carried, the Commission accepted the proposal by S.J. Tatay Drilling Contractor, Inc., for professional services in the Airport Economic Development Area. (Abandon Water Well, U.S. 31 Industrial Park) d. Appointment of members to the U.S. 31 Industrial Park Design Review Committee. The Design Review Committee functions in an advisory capacity to the Redevelopment Commission, reviewing site plans for projects located within the U.S. 31 Industrial Park. The term of appointment is two (2) years. The staff recommends that the Commission appoint Robert Case to replace Owen Rock, and reappoint Patrick Brown and John Schalliol to the Committee. Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission appointed Robert Case, Patrick Brown, and John Schalliol to the Design Review Committee. 7 COMMISSION ACCEPTED THE PROPOSAL BY S.J. TATAY DRILLING CONTRACTOR, INC., FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. COMMISSION APPOINTED ROBERT CASE, PATRICK BROWN, AND JOHN SCHALLIOL TO THE U.S. 31 INDUSTRIAL PARK. DESIGN REVIEW COMMITTEE. South Bend Redevelopment Commission Regular Meeting —June 15, 2001 6. NEW BUSINESS (CONT.) e. Staff report on disposition of property in the Sample -Ewing Development Area. (Studebaker Corridor Disposition Parcel 7) Mr. Schalliol asked that item 6.e. be tabled. There was no objection and the item was tabled. f. Staff report on disposition of property in the Sample -Ewing Development Area. (Studebaker Corridor Disposition Parcel 26) This item received action on March 16, 2001. No action is required at this meeting. g. Commission approval requested for Contract for Sale of Land for private development in the Sample -Ewing Development Area. (Studebaker Corridor Disposition Parcel 26) Mr. Schalliol explained that the Commission approved the sale of Studebaker Corridor Parcel 26 in the Sample -Ewing Development Area for a price of $1000 to Mr. Podell at its March 16, 2001, meeting. The Contract for Sale of Land is before the Commission today for approval. The Contract stipulates that construction of the project shall begin no later than September 2001 and be completed by May 2002. Upon a motion by Mr. Caldwell, seconded by Mr. Kahn and unanimously carried, the Commission approved the Contract for Sale of Land for Private Development in the Sample - Ewing Development Area. (Studebaker Corridor Disposition Parcel 26) h. Commission approval requested for professional services in the Sample -Ewing Development Area. (Phase I Environmental) ITEM 6.E. WAS TABLED. NO ACTION TAKEN. COMMISSION APPROVED THE CONTRACT FOR SALE OF LAND TO MR. PODELL FOR PRIVATE DEVELOPMENT IN THE SAMPLE -EWQVG DEVELOPMENT AREA (STUDEBAKER CORRIDOR DISPOSITION PARCEL 26) South Bend Redevelopment Commission Regular Meeting —June 15, 2001 6. NEW BUSINESS (CONT.) h. continued... Mr. Schalliol explained that a Phase 1 Environmental Report on Studebaker Corridor Parcel 7 was dated September 21, 1990. In order to proceed with the disposition of Parcel 7 we need an updated Phase 1 Environmental Report. We received three (3) proposals to do the work. One is from Envirocorp in the amount of $1500. Another is from Weaver Boos & Gordon in the amount of $1700. The final proposal is from E.I.S. in the amount of $900. The staff recommends accepting the proposal from E.I.S. in the amount of $900. E.I.S. expects to complete the work within thirty (30) days. Upon a motion by Mr. Caldwell, seconded by Mr. Kahn and unanimously carried, the Commission accepted the proposal from E.I.S for an updated Phase 1 Environmental Report on the Studebaker Corridor Parcel 7 in the Sample - Ewing Development Area. i. Commission approval requested for the Settlement Agreement and Release from Litigation in the South Bend Central Development Area. (Parcel C22 -16) (City Chapel) Ms. Greene explained that this is the Settlement Agreement and Release from Litigation arising out of a condemnation action pending on the City Chapel property located at 215 -217 South Main Street. As part of the agreement, the City of South Bend, on behalf of its Department of Redevelopment, will pay to City Chapel an E COMMISSION ACCEPTED THE PROPOSAL FROM E.I.S. FOR AN UPDATED PHASE I ENVIRONMENTAL REPORT ON THE STUDEBAKER CORRIDOR PARCEL 7 IN THE SAMPLE -EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting —June 15, 2001 6. NEW BUSINESS (CONT.) i. continued... additional sum of $155,000 which has been approved through the claims process. This amount is in addition to the sum of $410,000 set by the court appointed appraisers, which has already been deposited with the Clerk of St. Joseph County. The City of South Bend, on behalf of its Department of Redevelopment, has the right to take possession of this property effective June 1, 2001. The property will be vacated on July 6, 2001. The contract states that the additional $155,000 will be payed to City Chapel upon the closing of City Chapel's purchase of the A.D.T. Building. The staff recommends the Commission approve the settlement. Mr. Hunt thanked Ms. Greene for all her labors on this difficult project. Upon a motion by Mr. Faccenda, seconded by Mr. Caldwell and unanimously carried, the Commission approved the Settlement of Litigation in the South Bend Central Development Area. ( Parcel C22 -16) (City Chapel) 7. PROGRESS REPORTS Mr. Rock reported that construction has been completed on the Phase I road for access to the Tire Rack property. They are scheduled to begin construction on Phase II soon. The Tire Rack building is also nearing completion. Mr. Rock reported that the Gibb's Wire building is 10 COMMISSION APPROVED THE SETTLEMENT AGREEMENT AND RELEASE FROM LITIGATION IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (PARCEL C22 -16) (CITY CHAPEL) PROGRESS REPORTS. South Bend Redevelopment Commission Regular Meeting —June 15, 2001 nearing completion. Construction of the U.S. 31 Industrial Park East (Doctor's Property) is also nearing completion and construction has begun on the G.V.W. building. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for July 6, 2001, at 10:00 a.m. 9. ADJOURNMENT NEXT COMMISSION MEETING There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Kahn made a motion that the meeting be adjourned. Mr. Faccenda seconded the motion and the meeting was adjourned at 10:18 a.m. Robert W. Hunt, President 11 -4L" �ZL Donald E. Inks, Director