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HomeMy WebLinkAbout03-16-01 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION CW' REGULAR MEETING March 16, 2001 10:00 a.m. Presiding: Robert W. Hunt, President 1. ROLL CALL Members Present: Members 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. Jim Caldwell, Member Ms. Marcia Jones, Vice - President Mr. Matt Kahn, 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 Ms. Sandy Moran, Loan Services Officer Ms. Michelle Tomchak, Housing Specialist Others Present: Mr. George Podell, Podell & Company Mr. Steve Ellison, Stone Real Estate Group Mr. Paul Witek, Koontz - Wagner Mr. Dick Pfeil, Koontz - Wagner 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of March 2, 2001. Upon a motion by Mr. Faccenda, seconded by Mr. Caldwell and unanimously carried, the Commission approved the Minutes of the Regular Meeting of March 2, 2001. -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF MARCH 2, 2001 South Bend Redevelopment Commission Regular Meeting - March 16, 2001 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted March 16, 2001 for approval. 212 CDBG COMMUNITY DEVELOPMENT PAC Bannerworks/Plastimatic Arts Corp. Baker & Daniels U.S. Postal Service 324 FUND Dept of Engineering International Industrial Centre, Inc. 420 TIF -SBCDA Jerome E. Michaels, MAI Douglas L. Carpenter & Assoc. 414 SAMPLE -EWING FUND AEP Abonmarche Group 425 LEIGHTON PLAZA AEP Total All Claims Upon a motion by Mr. Caldwell, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Claims submitted March 16, 2001, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. -2- $18.00 $976.40 $125.00 $10,857.45 $710.86 $4,000.00 $1,200.00 $150.00 $2,44.00 736.27 $19,017.98 COMMISSION APPROVED THE CLAIMS SUBMITTED MARCH 16, 2001, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - March 16, 2001 6. NEW BUSINESS a. Commission approval requested for Resolution No. 1830 a resolution amending Resolution No. 1823 pledging tax increment finance revenues for the payment, if necessary, of the principal of and interest on a loan for the environmental remediation revolving loan fund administered by the Indiana Development Finance Authority. Mr. Case explained that Resolution No. 1823 was approved in January 2001 by the Commission. After approval, staff was notified that the Indiana Development Finance Authority required that their loan have a parity test with respect to any possible future issuance of Redevelopment District revenue bonds payable in whole or in part from tax increment revenues generated in the Allocation Area. Mr. Inks noted that a parity test calls for a current assessed value of the TIF and that the payment coming in would be at least 150% of all TIF service requirements. Upon a motion by Mr. Faccenda, seconded by Mr. Caldwell and unanimously carried, the Commission approved Resolution No. 1830 amending Resolution No. 1823 pledging tax increment finance revenues for the payment, if necessary, of the principal of and interest on a loan for the environmental remediation revolving loan fund administered by the Indiana Development Finance Authority. -3- COMMISSION APPROVED RESOLUTION NO. 1830 AMENDING RESOLUTION NO. 1823 PLEDGING TAX INCREMENT FINANCE REVENUES FOR THE PAYMENT, IF NECESSARY, OR THE PRINCIPAL OF AND INTEREST ON A LOAN FOR THE ENVIRONMENTAL REMEDIATION REVOLVING LOAN FUND ADMINISTERED BY THE INDIANA DEVELOPMENT FINANCE AUTHORITY South Bend Redevelopment Commission Regular Meeting - March 16, 2001 6. NEW BUSINESS (CONT.) b. Commission approval requested for agreement with Center City Associates to establish the guidelines for Center City Associates' utilization of program income generated for the use or rental of a City - owned parking lot leased by Center City Associates. (Parcels C8 -7 and C8 -9, Baer's lot) Mr. Inks asked that item 6.b be tabled. There THE ITEM WAS TABLED was no objection from the Commission and the item was tabled. c. Commission approval requested for permission to hold three Rooftop Rendezvous 2001 events on the roof of the Wayne /St. Joseph Street parking garage. (AIDS Ministries) Mr. Mathia explained that the events have been held on the roof top for several years and recommended that the Commission approve the request. The dates requested are June 22, July 20, and August 24, 2001 Mr. Hunt explained that in the past there have been problems with debris being thrown off the roof to the streets below and recommended to the Commission that the first event be approved and if there are no problems or complaints, then the other two events will be approved. Upon a motion by Mr. Faccenda, seconded by Mr. Caldwell and unanimously carried, the Commission approved the first Rooftop Rendezvous 2001 event to be held on the roof of the Wayne /St. Joseph Street garage on June 22, 2001. The second and third events are conditional based upon there being no problems at the first event. me COMMISSION APPROVED THE FIRST ROOFTOP RENDEZVOUS 2001 EVENT TO BE HELD ON THE ROOF OF THE WAYNE /ST.JOSEPH STREET GARAGE. THE SECOND AND THIRD EVENTS ARE CONDITIONAL BASED UPON THERE BEING NO PROBLEMS AT THE FIRST EVENT South Bend Redevelopment Commission Regular Meeting - March 16, 2001 6. NEW BUSINESS (CONT.) d. Commission approval requested for disposition of property in the Sample -Ewing Development Area. (Parcel 26, Studebaker Corridor) Mr. Schalliol explained that the parcel is 16,000 sq.ft. and is located on the southeast corner of Main St. and Broadway. He stated that Mr. Podell currently has an operation at the location and would like to acquire the property and expand his business. The expansion would be used for manufacturing and would also include a new paved parking area, landscaping and a rear fenced storage yard. The proposed purchase price is $1000. The staff recommends accepting the offer. Upon a motion by Mr. Faccenda, seconded by Mr. Caldwell and unanimously carried, the Commission approved the sale of parcel 26 in the Studebaker Corridor in the Sample -Ewing Development Area for a price of $1000 to Mr. Podell. e. Commission approval requested for Resolution No. 1828 transferring property located in the Sample -Ewing Development Area to St. Joseph County. (Jail site) Ms. Greene explained that items 6.e and 6.f are related in that this both properties were acquired from AEP for the new jail site. Resolution No. 1828 transfers the east portion of the property to the County as it is the last piece of property needed for the jail site. -5- COMMISSION APPROVED THE SALE OF PROPERTY IN THE SAMPLE -EWING DEVELOPMENT AREA (PARCEL 26, STUDEBAKER CORRIDOR) South Bend Redevelopment Commission Regular Meeting - March 16, 2001 6. NEW BUSINESS (CONT.) e. continued... Upon a motion by Mr. Caldwell, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1828 transferring property located in the Sample - Ewing Development Area to St. Joseph County. (Jail site) L Commission approval requested for Resolution No. 1829 transferring property located in the Sample -Ewing Development Area to the City of South Bend. ( West of Jail site) Ms. Greene noted that Resolution No. 1829 transfer the west portion of the property that was acquired from AEP. The west portion was not needed for the jail site, so it is being transferred to the Board of Public Works. Upon a motion by Mr. Caldwell, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1829 transferring property located in the Sample - Ewing Development Area to the City of South Bend. (West of Jail site) g. 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 in COMMISSION APPROVED RESOLUTION NO. 1828 TRANSFERRING PROPERTY LOCATED IN THE SAMPLE -EWING DEVELOPMENT AREA TO ST. JOSEPH COUNTY (JAIL SITE) COMMISSION APPROVED RESOLUTION NO. 1829 TRANSFERRING PROPERTY LOCATED IN THE SAMPLE -EWING DEVELOPMENT AREA TO THE CITY OF SOUTH BEND (WEST OF JAIL SITE) South Bend Redevelopment Commission Regular Meeting - March 16, 2001 6. NEW BUSINESS (CONT.) g. continued... 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 Area. The project qualifies for a three year real property tax abatement under the Tax Abatement Ordinance. Without abatement, the taxes on the $700,000 project would be approximately $112,025. With a three -year abatement, the taxes paid will be approximately $37,342. Therefore, the cost of the abatement will be approximately $74,684 over the three -year period. Mr. Pfeil asked the Commission to consider this new addition as an expansion of the last addition and grant a six -year tax abatement instead of a three -year abatement. He stated that this new addition is being added within 10 months of the last edition and that the total expansion is approximately 25,000 sq. ft. -7- South Bend Redevelopment Commission Regular Meeting - March 16, 2001 6. NEW BUSINESS (CONT.) g. continued... Mr. Hunt stated that the Common Council is the one that grants the tax abatements and that the Commission only authorizes to give up the TIF money. Mr. Pfeil stated that he understood that and asked that the Commission recommend to the Council that their request be granted. Mr. Hunt stated that he would defer the request to Legal Council. Ms. Greene stated that she would need time to THE ITEM WAS TABLED investigate this request and suggested that the item be tabled until the next Commission meeting on April 6, 2001. There being no objection, the item was tabled. h. 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) There was not a representative from Indiana THE ITEM WAS TABLED Land Trust 5181 in attendance and Mr. Hunt suggested that the item be tabled. There being no objection, the item was tabled. i. Commission approval requested for Satisfaction of Obligations and Partial Release of Mortgage for property located at 717 Blaine. (Housing Development Corporation) Mr. Inks noted that this was a Rental Rehab Loan that has been paid in full. -8- South Bend Redevelopment Commission Regular Meeting - March 16, 2001 6. NEW BUSINESS (CONT.) i. continued... Upon a motion by Mr. Caldwell, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Satisfaction of Obligations and Partial Release of Mortgage for property located at 717 Blaine. (Housing Development Corporation) j. Commission approval requested for Satisfaction of Obligations and Partial Release of Mortgage for property located at 743 Blaine St. (Housing Development Corporation) Mr. Inks noted that this was a Rental Rehab Loan that has been paid in full. Upon a motion by Mr. Faccenda, seconded by Mr. Caldwell and unanimously carried, the Commission approved the Satisfaction of Obligations and Partial Release of Mortgage for property located at 743 Blaine St. (Housing Development Corporation) k. Commission approval requested for Certificate of Waiver for property located at 743 N. Blaine St. (Housing Development Corporation) _ Mr. Inks explained that items 61, 6.1, 6.m, and 6.n were all Certificates of Waiver. Under the Rental Rehab Program 10% of the loan amount is waived per year if certain conditions are met. The conditions of the loan are: the owner must retain lawful title to the property, the property must be kept in good repair, fire and liability insurance must be maintained, the owner must In COMMISSION APPROVED THE SATISFACTION OF OBLIGATIONS AND PARTIAL RELEASE OF MORTGAGE FOR PROPERTY LOCATED AT 717 BLAINE (HOUSING DEVELOPMENT CORPORATION) COMMISSION APPROVED THE SATISFACTION OF OBLIGATIONS AND PARTIAL RELEASE OF MORTGAGE FOR PROPERTY LOCATED AT 743 BLAINE ST. (HOUSING DEVELOPMENT CORPORATION) South Bend Redevelopment Commission Regular Meeting - March 16, 2001 6. NEW BUSINESS (CONT.) k. continued... pay all property taxes, the property cannot be converted into a condominium and rental units must be marketed to low and moderate income people. Mr. Inks note that the amount to be waived for 743 Blaine St. is $750 as of October 1, 2000. Upon a motion by Mr. Faccenda, seconded by Mr. Caldwell and unanimously carried, the Commission approved the Certificate of Waiver for property located at 743 N. Blaine St. (Housing Development Corporation) 1. Commission approval requested for Certificate of Waiver for property located at 413 Jackson St. (Charles A. Jackson) Mr. Inks noted that the amount to be waived is $2,250 as of June 24, 2000. Upon a motion by Mr. Faccenda, seconded by Mr. Caldwell and unanimously carried, the Commission approved the Certificate of Waiver for property located at 413 Jackson St. (Charles A. Jackson) m. Commission approval requested for Certificate of Waiver for property located at 445 S. Meade. (Joseph Risinger) Mr. Inks noted that the amount to be waived is $1,700 as of March 31, 2000. Upon a motion by Mr. Faccenda, seconded by Mr. Caldwell and unanimously carried, the Commission approved the Certificate of Waiver for property located at 445 S. Meade. (Joseph Risinger) -10- COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR PROPERTY LOCATED AT 743 N. BLAINE ST. (HOUSING DEVELOPMENT CORPORATION) COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR PROPERTY LOCATED AT 413 JACKSON ST. (CHARLES A. JACKSON) COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR PROPERTY LOCATED AT 445 S MEADE (JOSEPH RISINGER) South Bend Redevelopment Commission Regular Meeting - March 16, 2001 6. NEW BUSINESS (CONT.) n. Commission approval requested for Certificate of Waiver for property located at 829 E. Miner St. (Paul & Mary Jo Quinn) Mr. Inks noted that the amount to be waived is $453.16 as of September 11, 2000. Upon a motion by Mr. Faccenda, seconded by Mr. Caldwell and unanimously carried, the Commission approved the Certificate of Waiver for property located at 829 E. Miner St. (Paul & Mary Jo Quinn) o. Commission approval requested for a loan and grant in connection with the Affordable Loan Program for property located at 1937 Churchill Dr. (Fatmata Ismail) Mr. Inks noted that the loan and grant is for home improvements. The loan portion is in the amount of $6,050. The grant portion is in the amount of $1,465.20. Upon a motion by Mr. Caldwell, seconded by Mr. Faccenda and unanimously carried, the Commission approved the loan and grant in connection with the Affordable Loan Program for property located at 1937 Churchill Dr. (Fatmata Ismail) P. Commission approval requested for a loan and grant in connection with the Affordable Loan Program for property located at 1640 Longley. (Yvonne Wright) Mr. Inks noted that the loan and grant is for home improvement. The loan portion is in the amount of $7,850 and the grant portion is in the amount of $7,631.80. -11- COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR PROPERTY LOCATED AT 829 E. MINER ST. (PAUL & MARY JO QUINN) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 1937 CHURCHILL DR. (FATMATA ISMAIL) South Bend Redevelopment Commission Regular Meeting - March 16, 2001 6. NEW BUSINESS (CONT.) p. continued... Upon a motion by Mr. Caldwell, seconded by Mr. Faccenda and unanimously carried, the Commission approved the loan and grant in connection with the Affordable Loan Program for property located at 1640 Longley. (Yvonne Wright) 7. PROGRESS REPORT There were no progress reports. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for April 6, 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. Caldwell seconded the motion and the meeting was adjourned at 10:27 a.m. -12- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 1640 LONGLEY (YVONNE WRIGHT) THERE WERE NO PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT - P'� -I &-- �?� Ddnald E. Inks, Director