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HomeMy WebLinkAbout04-06-01 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING April 6, 2001 10:00 a.m. Presiding: Robert W. Hunt, President 1. ROLL CALL Members Present: Member Absent: Legal Counsel: 1308 County -City Building 227 West Jefferson Boulevard South Bend, Indiana Mr. Robert W. Hunt, President Mr. Philip J. Faccenda, Secretary Mr. Matt Kahn, Member Ms. Marcia Jones, Vice - President Mr. Jim Caldwell, Member Ms. Cheryl Greene Redevelopment Staff: Mr. Don Inks, Director Ms. Debi Perkins, Recording Secretary Mr. Owen Rock, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Mr. Robert Mathia, Economic Development Specialist Mr. Robert Case, Economic Development Specialist Mr. Bill Schalliol, Economic Development Specialist Mr. Marco Mariani, Community Planning Ms. Sandy Moran, Loan Specialist Mr. Michael Beitzinger, Loan Specialist Others Present: Mr. Dick Pfeil, Koontz - Wagner Mr. Paul Witek, Koontz - Wagner Mr. Sean Sullivan, Indiana Land Trust Mr. Gary Belting, Mossberg & Company, Inc. Mr. Rich Deahl, Mossberg & Company, Inc. Mr. Randy Rumpola, Baker & Daniels 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of April 6, 2001. 4- South Bend Redevelopment Commission Regular Meeting - April 6, 2001 2. APPROVAL OF MINUTES (CONT.) Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the Minutes of the Regular Meeting of April 6, 2001. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF APRIL 6, 2001 3. CLAIMS Redevelopment Commission Claims submitted April 6, 2001 for approval. 212 CDBG COMMUNITY DEVELOPMENT General Fund - Telephone $154.00 Petty Cash $26.00 Owen Rock $185.00 Photography Plus $595.00 Dun & Bradstreet $375.85 Insty- Prints $24.00 Federal Express $125.25 American Electric Power $736.27 414 SAMPLE -EWING FUND Hull & Associates $398.25 Petty Cash $69.00 American Electric Power $6,333.00 420 TIF -SBCDA Holladay Property Services, Inc. $12,620.00 Affordable Awing & Canvas $2,138.00 424 TIF - SBCDA - BUILDING OPERATIONS American Electric Power $1,178.85 NIPSCO $593.30 South Bend Water Works $169.64 CB Richard Ellis - South Bend $51.44 619 BLACKTHORN Meadowbrook Golf Group, Inc. $7,450.00 Total All Claims $33,222.85 -2- South Bend Redevelopment Commission Regular Meeting - April 6, 2001 3. CLAIMS (CONT.) Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Claims submitted April 6, 2001, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS a. Commission approval requested for Resolution No. 1824 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (Koontz- Wagner Electric Company, Inc.) Ms. Moran reported that Koontz - Wagner Electric Company, Inc. has offered complete electrical services for over 75 years. The company is proposing to expand its existing business to include a 15,100 sq. ft. addition to the building. The addition is necessary due to strong growth in demand for package control rooms manufactured by the Custom Controls Division. The total estimated cost of the project is $700,000 and is to be completed by September 2001. The project will create approximately fifteen (15) new permanent jobs within the first year and will maintain two- hundred ninety -four (294) existing permanent full -time jobs for an annual payroll of $11,500,000. The petitioner has been granted two previous tax abatements. The building commissioner has reviewed the petition and finds the property to be properly zoned for the project. The property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation -3- COMMISSION APPROVED THE CLAIMS SUBMITTED APRIL 6, 2000, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Regular Meeting - April 6, 2001 5. OLD BUSINESS (CONT.) a. continued... Area. The project qualifies for a six year real property tax abatement under the Tax Abatement Ordinance. Without abatement, the taxes on the $700,000 project would be approximately $224,051. With a six -year abatement, the taxes paid will be approximately $92,359. Therefore, the cost of the abatement will be approximately $131,692 over the six -year period. Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1824 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (Koontz - Wagner Electric Company, Inc.) b. Commission approval requested for Resolution No. 1825 approving an application for real property tax deduction for property located in the South Bend Central Development Area. (Indiana Land Trust 5181) Ms. Moran reported that Indiana Land Trust 5181 proposes to rehabilitate the building at 209 East Colfax which has been vacant for approximately one year and is quickly deteriorating because of the severe winter. The plan is to conduct improvements totaling $100,000 in order to spark the development of the entire site into a retail complex. Initial improvements including roof repairs, engineering assessment of the corner of the building, electrical re- fitting, mechanical work and repairs, and acquisition of brewing equipment. It is -4- COMMISSION APPROVED RESOLUTION NO. 1824 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (KOONTZ- WAGNER ELECTRIC COMPANY, INC.) South Bend Redevelopment Commission Regular Meeting - April 6, 2001 5. OLD BUSINESS (CONT.) b. continued... estimated that the project will create three (3) new permanent jobs within the first year, representing a new annual payroll of $100,000. The petitioner has not been granted any previous tax abatements and is properly zoned for the proposed project. The property is located in the East Bank portion of the South Bend Central Development Area, which is a Tax Incremental Allocation Area and qualifies for a ten -year real property tax abatement. Without abatement, the taxes on the $100,000 project would be approximately $53,345. With a ten -year abatement, the taxes paid will be approximately $26,406. Therefore, the cost of the abatement will be approximately $26,939 over the ten -year period. Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1825 approving an application for real property tax deduction for property located in the South Bend Central Development Area. (Indiana Land Trust 5181) 6. NEW BUSINESS a. Filing of Resolution No. 1831 amending the Sample -Ewing Development Area Development Plan and setting a Public Hearing on April 20, 2001 at 10:00 a.m. Commission accepted for filing Resolution No. 1831 and set a Public Hearing for April 20, 2001 at 10:00 a.m. -5- COMMISSION APPROVED RESOLUTION NO. 1825 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (INDIANA LAND TRUST 518 1) COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 1831 AND SET A PUBLIC HEARING FOR APRIL 20, 2001 AT 10:00 A.M. South Bend Redevelopment Commission Regular Meeting - April 6, 2001 6. NEW BUSINESS (CONT.) b. Commission approval requested for Resolution No. 1832 approving an application for personal property tax deduction for property located in the Sample -Ewing Development Area. (Mossberg & Company, Inc.) Ms. Moran reported that Mossberg & Company, Inc. is engaged in the lithography and printing industry. The company prints and lithographs high quality, close tolerance, color brochures and inserts for the medical products industry, annual and quarterly statements for publicly held companies and a variety of printing material, particularly for companies with needs for high quality, close tolerance printing. To maintain the high quality standard and cost effectiveness, the company will be purchasing one (1) new offset printing press and two (2) new bindery machines. The total cost of the new equipment is estimated at $3,150,000. It is estimated that this project will create between three and four new, permanent, full -time jobs representing a new annual payroll of between $150,000 and $200,000. The project will also maintain one hundred and thirty (13 0) existing permanent full - time and part-time jobs representing an annual payroll of $6,750,000. The petitioner has been granted previous tax abatements and was in compliance for all previous abatements, all of which have now expired. The property is properly zoned for the proposed project; and the property is located in the Sample -Ewing Development Area, which is a Tax Incremental Allocation Area and qualifies for a five -year tax abatement. Without abatement, the taxes on the $3,150,000 project would be approximately $325,993. With a five -year abatement, the taxes paid will be Ell South Bend Redevelopment Commission Regular Meeting - April 6, 2001 6. NEW BUSINESS (CONT.) b. continued... approximately $111,577. Therefore, the cost of the abatement will be approximately $214,416 over the five -year period. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 1832 approving an application for personal property tax deduction for property located in the Sample - Ewing Development Area. (Mossbery & Company, Inc.) c. Commission approval requested for Resolution No. 1833 approving an application for real property tax deduction for property located in the Sample -Ewing Development Area. (American Home Dreams) Ms. Moran reported that American Home Dreams, Inc. will construct three new homes. The homes will be 1800 sq. ft. each, with 3 bedrooms, 2 '/2 baths, a full basement, and a two car garage. The floor plan also includes a full kitchen, great room, and laundry room. The sale price of each home will be around $110,500, and the homes will be available to low and moderate income first time home buyers. Qualified buyers will also be eligible for a mortgage subsidy of between $15,000 and $17,000 through the St. Joseph County Housing Assistance Office. The property is properly zoned for the proposed project; and the property is located in the Sample -Ewing Development Area, which is a Tax Incremental Allocation Area and qualifies for a five -year tax abatement. Without abatement, the taxes on the $110,500 project would be approximately $16,154.19. -7- COMMISSION APPROVED RESOLUTION NO. 1832 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE SAMPLE -EWING DEVELOPMENT AREA (MOSSBERG & COMPANY, INC.) South Bend Redevelopment Commission Regular Meeting - April 6, 2001 6. NEW BUSINESS (CONT.) c. continued... With a five -year abatement, the taxes paid will be approximately $7,564.89. Therefore, the cost of the abatement will be approximately $8,589.30 over the five -year period. Mr. Hunt noted for the record that Mr. Jon Hunt, Director of Community & Economic Development, is a member of the Board of Directors of American Home Dreams. Upon a motion by Mr. Kahn, seconded by Mr. Caldwell and unanimously carried, the Commission approved Resolution No. 1833 approving an application for real property tax deduction for property located in the Sample - Ewing Development Area. (American Home Dreams) d. Commission approval requested for Resolution No. 1834 establishing certain funds and accounts in connection with the lease dated as of November 1, 1993, as amended, between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority for the Century Center Project. Mr. Inks explained that in 1994, bonds were issued on the expansion of the Century Center. The City's controller's office has been reviewing the bonds and talking to financial consultants about the possibility of refunding the bonds to achieve a lower interest rate. They deemed that the time is appropriate to look into refunding the bonds in an amount not to exceed $7,000,000. Mr. Rompola noted that the South Bend Redevelopment Authority will adopt the bond in COMMISSION APPROVED RESOLUTION NO. 1833 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE SAMPLE -EWING DEVELOPMENT AREA (AMERICAN HOME DREAMS) South Bend Redevelopment Commission Regular Meeting - April 6, 2001 6. NEW BUSINESS (CONT.) d. continued... resolution at its meeting on April 16, 2001. Upon a motion by Mr. Faccenda, seconded by COMMISSION APPROVED RESOLUTION Mr. Kahn and unanimously carried, the NO. 1834 ESTABLISHING CERTAIN FUNDS AND ACCOUNTS IN CONNECTION WITH THE Commission approved Resolution 1834 LEASE DATED AS OF NOVEMBER 1, 1993, AS establishing certain funds and accounts in AMENDED, BETWEEN THE SOUTH BEND connection with the lease dated as of REDEVELOPMENT COMMISSION AND THE SOUTH BEND REDEVELOPMENT AUTHORITY November 1, 1993, as amended, between the FOR THE CENTURY CENTER PROJECT South Bend Redevelopment Commission and the South Bend Redevelopment Authority for the Century Center Project. e. Commission approval requested for professional services regarding the acquisition of property in the Sample -Ewing Development Area. (Environmental Consulting Services, Studebaker /Oliver Plow Works Project) Mr. Laurent explained that staff requested a proposal from Hull & Associates, Inc. to provide general environmental consulting services related to the Allied Products property acquisitions, Huckins property acquisition, and for coordination with the Indiana Department of Environmental Management for site assessment activities to be performed on the properties in Area A. Staff recommends accepting the proposal from Hull & Associates, Inc. in the amount of $13,287. Upon a motion by Mr. Kahn, seconded by COMMISSION ACCEPTED THE PROPOSAL Mr. Faccenda and unanimously arried, the y FROM HULL & ASSOCIATES, INC. FOR PROFESSIONAL ENVIRONMENTAL Commission accepted the proposal from Hull & CONSULTING SERVICES IN THE SAMPLE - Associates, Inc. for professional environmental EWING DEVELOPMENT AREA consulting services in the Sample -Ewing PRO DCBAKER/OLIVER PLOW WORKS Development Area. (Studebaker /Oliver Plows Works Project) In South Bend Redevelopment Commission Regular Meeting - April 6, 2001 6. NEW BUSINESS (CONT.) f. Commission approval requested for professional services for property located in the Sample -Ewing Development Area. (Appraisal for 1010 Prairie Ave.) Mr. Laurent noted that the property is the former Huckins Tool & Die facility and is part of the Studebaker /Oliver Plow Works Project. Staff received two proposals for the appraisal of the property. The first proposal is from Jerome E. Michaels in the amount of $2,400 and the second proposal is from R. E. Pitts & Associates in the amount of $3,400. Staff recommends accepting the proposal from Jerome E. Michaels. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission accepted the proposal from Jerome E. Michaels for professional appraisal services in the Sample -Ewing Development Area. (10 10 Prairie Ave.) g. Commission approval requested for professional services for property located in the Sample -Ewing Development Area. (Development of marketing/communications materials, Studebaker /Oliver Plow Works Project) Mr. Laurent explained that CA Studios is developing an informative brochure regarding the Studebaker /Oliver Plow Works Project. The estimated cost will be within a range of $6,354 to $7,643. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the proposal from CA Studios for professional services in the Sample - Ewing Development Area. (Development of -10- COMMISSION ACCEPTED THE PROPOSAL FROM JEROME E. MICHAELS FOR PROFESSIONAL SERVICES IN THE SAMPLE - EWING DEVELOPMENT AREA (10 10 PRAIRIE AVE.) COMMISSION APPROVED THE PROPOSAL FROM CA STUDIOS FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA (DEVELOPMENT OF MARKETING /COMMUNICATION S MATERIALS, STUDEBAKER/OLIVER PLOW South Bend Redevelopment Commission Regular Meeting - April 6, 2001 6. NEW BUSINESS (CONT.) g. continued... marketing/communications materials, Studebaker /Oliver Plow Works Project) h. Commission approval requested for professional services for property located in the Sample -Ewing Development Area. (Environmental legal services, property acquisition) Mr. Laurent explained that Patton Boggs LLP has been retained to represent the City of South Bend in connection with environmental matters and recommended approving the terms and conditions outlined in the engagement letter. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for professional services for property located in the Sample -Ewing Development Area. (Environmental legal services, property acquisition) i. Commission approval requested for professional services for property located in the Sample -Ewing Development Area. (Asbestos abatement, Southeast Housing Project) Mr. Mariani explained that the asbestos abatement is part of the required demolition of several properties targeted for removal along Broadway St. in the Southeast Neighborhood to accommodate a new housing development. Staff received one proposal from Grauvogel & Associates for the asbestos abatement in the amount of $1,200. Staff recommends accepting the proposal. -11- WORKS PROJECT) COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES FOR PROPERTY LOCATED IN THE SAMPLE -EWING DEVELOPMENT AREA (ENVIRONMENTAL LEGAL SERVICES, PROPERTY ACQUISITION) South Bend Redevelopment Commission Regular Meeting - April 6, 2001 6. NEW BUSINESS (CONT.) i. continued... Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission accepted the proposal from Grauvogel & Associates for professional services for property located in the Sample -Ewing Development Area. (Asbestos abatement, Southeast Housing Project) j. Commission approval requested for professional services for property located in the Sample -Ewing Development Area. (Landscaping service, Center for the Homeless) Mr. Mariani explained that the Center for the Homeless has submitted a proposal to provide landscape services to maintain several large, vacant parcels in the Southeast Neighborhood, Dean Johnson Blvd., the round -a -bout, and the Fellows Street Blvd. Several vacant parcels in the Studebaker Corridor will also be maintained. The term of the agreement is one year. He noted that the proposal amount is $26,650 for the agreement. The agreement may be terminated at any time with a thirty -day written notice to the Center for the Homeless and the Commission would only be charged for services actually rendered. Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission accepted the proposal from the Center for the Homeless for professional services in the Sample -Ewing Development Area. (Landscaping Services) ra -12- COMMISSION ACCEPTED THE PROPOSAL FROM GRAUVOGEL & ASSOCIATES FOR PROFESSIONAL SERVICES FOR PROPERTY LOCATED IN THE SAMPLE -EWING DEVELOPMENT AREA (ASBESTOS ABATEMENT, SOUTHEAST HOUSING PROJECT) COMMISSION ACCEPTED THE PROPOSAL FROM THE CENTER FOR THE HOMELESS FOR PROFESSIONAL SERVICES IN THE SAMPLE - EWING DEVELOPMENT AREA (LANDSCAPING SERVICES) South Bend Redevelopment Commission Regular Meeting - April 6, 2001 6. NEW BUSINESS (CONT.) k. Commission approval requested for professional services for property located in the Airport Economic Development Area. (Air conditioner service, Blackthorn Golf Course) Mr. Rock explained that the condensation units for the clubhouse are in need of repair. Staff received one proposal from Kaser - Spraker Construction, Inc. in the amount of $2,193 and one proposal from Grott in the amount of $2,300. Staff recommended accepting the proposal from Kaser - Spraker Construction, Inc. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission accepted the proposal from Kaser- Spraker Construction, Inc. for professional services for property located in the Airport Economic Development Area. 1. Commission approval requested for professional services for property located in the Airport Economic Development Area. (Telephone service, Blackthorn Golf Course) Mr. Rock explained that the telephone service and billing was analyzed at the Blackthorn Golf Clubhouse and found that by changing the regular business lines to Ameritech Centrex service, an annual savings of approximately $4,000 can be expected. An initial cost for installation is $1,444 and service is available for 36, 60 or 80 month terms. Staff recommended approving the proposal to change the telephone service with a 60 month term. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the proposal for professional services in the Airport Economic Development Area. (Telephone service, Blackthorn Golf Course) -13- COMMISSION ACCEPTED THE PROPOSAL FROM KASER - SPRAKER CONSTRUCTION, INC. FOR PROFESSIONAL SERVICES FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA COMMISSION APPROVED THE PROPOSAL FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (TELEPHONE SERVICE, BLACKTHORN GOLF COURSE) South Bend Redevelopment Commission Regular Meeting - April 6, 2001 6. NEW BUSINESS (CONT.) m. Commission approval requested for agreement for variable parking rate structure offered to monthly parkers affected by downtown redevelopment project. (Holladay Corporation) Mr. Mathia explained that due to the River Glen Office Campus Expansion Project, 120 tenants of One Michiana Square lost their parking spaces. This agreement offers a discounted individual monthly parking rate in the Wayne St. Parking Garage to the 120 monthly parkers. The discounted rate will be $25.00 per month. Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved the agreement for variable parking rate structure offered to monthly parkers affected by the downtown redevelopment project. (Holladay Corporation) n. Commission approval requested for Contract for Sale of Land for Private Development. (Crowe Chizek Project) Ms. Greene stated that the parcel of land was purchased by the City for the River Glen Office Campus Expansion Project. The City took bids and awarded the property to Crowe Chizek for $400,752. This is the Contract for Sale of Land for that conveyance. Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Contract for Sale of Land for Private Development. (Crowe Chizek Proj ect) -14- COMMISSION APPROVED THE AGREEMENT FOR VARIABLE PARKING RATE STRUCTURE OFFERED TO MONTHLY PARKERS AFFECTED BY THE DOWNTOWN REDEVELOPMENT PROJECT (HOLLADAY CORPORTATION) COMMISSION APPROVED THE CONTRACT FOR SALE OF LAND FOR PRIVATE DEVELOPMENT (CROWE CHIZEK PROJECT) South Bend Redevelopment Commission Regular Meeting - April 6, 2001 7. PROGRESS REPORTS There were no progress reports. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for April 20, 2001, at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Faccenda made a motion that the meeting be adjourned. Mr. Kahn seconded the motion and the meeting was adjourned at 10:35 a.m. Robert W. Hunt, President -15- THERE WERE NO PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT Donald E. Inks, Director