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Home My WebLink About06-09-06 Redevelopment Commission Minutes MinutesSOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULED REGULAR MEETING June 9, 2006 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Ms. Marcia Jones, President Mr. Karl King, Vice President Mr. Greg Downes, Secretary Mr. Hardie B lake, Jr. Mr. William Hojnacki Ms. Cheryl Greene, Esq. Mr. Shawn Peterson, Esq. Redevelopment Staff: Mr. Bill Schalliol, Economic Development Specialist Mrs. Cheryl Phipps, Recording Secretary Mr. Timothy Williams, Economic Development Specialist Mr. Andrew Laurent, Economic Development Specialist Others Present: Ms. Pam Paluszewski, Legal Dept. Ms. Jamie Loo, South Bend Tribune Mr. Larry Shoemaker, Precision Millworks Ms. Catherine Fanello, City Controller Ms. Jenny Hullinger Ms. Glenda Rae Hernandez Dr. Ani Aprahamian Mr. Marty Wolfson Ms. Meg Hood Mr. King noted a Revised Agenda for the June 9, 2006 meeting. Item 6.E.(2) was added, accepting transfer of property from the Airport Authority; and the wording of Item 6.L(2) was changed to better reflect that Resolution No. 2250 was simply being filed. Mr. King made a motion that the Revised Agenda be COMMISSION APPROVED THE REVISED accepted and approved. Mr. Downes seconded the AGENDA DATED JUNE 9, 2006 motion and the Commission approved the Revised Agenda dated June 9, 2006. South Bend Redevelopment Commission Rescheduled Regular Meeting -June 9, 2006 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, April 21, 2006. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, April 21, 2006 B. Approval of Minutes of the Regular Meeting of Friday, May 19, 2006. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, May 19, 2006. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, APRIL 21, 2006 COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, MAY 19, 2006 Redevelopment Commission Claims submitted June 9, 2006 for approval. 305 SBCDA 2003 BOND Danch Harner & Associates 592.50 Kaser-Spraker Construction 83,968.83 Walker Parking Consultants 3,632.11 Weaver Boos Consultants LLC 155.00 Rieth Riley Construction Co., Inc. 80,857.68 324 AIRPORT AEDA Ken Herceg & Associates, Inc Dewey Construction Inc. 420 FUND TIF DISTRICT-SI Schindler Elevator Corp Indiana Michigan Power Downtown South Bend, Inc. 10,020.16 10,100.52 3 CDA GENERAL 1,313.00 218.08 1,850.46 $ 192,708.34 Upon a motion by Mr. Blake, seconded by Mr. Downes and unanimously carried, the Commission approved the Claims submitted June 9, 2006, and ordered checks to be released. COMMISSION APPROVED THE CLAIMS SUBMITTED JUNE 9, 2006, AND ORDERED THE CHECKS TO BE RELEASED 2 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 9, 2006 4. COMMUNICATIONS There Were n0 CommunlCat10n5. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Tax Abatements (1) Commission approval requested for Resolution No. 2247 approving an application for real property tax deduction for property located at 3311 William Richardson Court in the Airport Economic Development Area. (Precision Millwork & Plastics, Inc.) Mr. Schalliol gave the staff report on the project. Precision Millwork & Plastics, Inc. produces custom cabinets, countertops, store fixtures and wood and plastic industrial parts. The company plans to construct an 11,500 square foot addition to the rear of its existing building in order to expand its business. The estimated cost of the addition is $250,000. The project will create five new permanent, full-time jobs, representing a new annual payroll of $100,000. The project will also maintain thirty existing permanent, full-time jobs and one part-time job, representing an annual payroll of $720,000. Precision Millwork & Plastics has had three previous abatements and is incompliance with all reporting requirements for those abatements. The property is properly zoned for the proposed project. The property is in the Airport Economic Development Area, THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS 3 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 9, 2006 6. NEW BUSINESS (CONT.) A. Tax Abatements () continued... which is a tax increment allocation area; therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. The project qualifies for athree-year real property tax abatement under the tax abatement ordinance. Based on a project cost of $250,000, the cost of the abatement is estimated as follows: Estimated Taxes Over 3 Yrs Without Abatement $24,342 With 3 Yr Abatement $8,195 Estimated Cost of 3 Yr Abatement $16,147 Mr. Shoemaker indicated that Precision Millworks anticipates increased business due especially to the number of medical office buildings that are being constructed in the area. They want to be prepared for the increased business. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2247 approving an application for real property tax deduction for property located at 3311 William Richardson Court in the Airport Economic Development Area. (Precision Millwork & Plastics, Inc.) COMMISSION APPROVED RESOLUTION N0.2247 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3311 WILLIAM RICHARDSON COURT IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (PRECISION MILLWORK & PLASTICS, INC.) 4 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 9, 2006 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) Commission approval requested for Resolution No. 2249 approving an application for real property tax deduction for property located at 936 Notre Dame Avenue in the Northeast Neighborhood Development Area. (Ani Aprahamian) Mr. Schalliol gave the staff report on the project. Ani Aprahamian is preparing to build a new home on the above listed property. The home will be approximately 3,000 square feet. It will have a living room, dining room, four bedrooms, and five bathrooms, with atwo-car garage. The cost of the home will be approximately $450,000. Dr. Aprahamian plans to complete construction by June 2007. Dr. Aprahamian has not been associated with any previous tax abatements. The property is properly zoned for the proposed use. The property is located in the Northeast Neighborhood Development Area, which is a tax increment allocation area; therefore, approval is required from the Redevelopment Commission. The project qualifies for five years of residential tax abatement under the tax abatement ordinance. Assuming a project cost of $450,000, the cost of the abatement is estimated as follows: Estimated Taxes Over 5 Yrs Without Abatement $24,342 With 5 Yr Abatement $8,195 Estimated Cost of 5 Yr Abatement $16,147 5 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 9, 2006 6. NEW BUSINESS (CONT.) A. Tax Abatements continue ... Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved Resolution No. 2249 approving an application for real property tax deduction for property located at 936 Notre Dame Avenue in the Northeast Neighborhood Development Area. (Ani Aprahamian) B. Housing There was no business related to Housing. C. South Bend Central Development Area (1) Commission approval requested for proposal for roof maintenance in the South Bend Central Development Area (LaSalle Hotel) Mr. Williams noted that Bob Humbarger of ComSpecT Services, Inc. has submitted a proposal to evaluate leaks, prepare a plan for correction and oversee the plan to completion. He will continue to monitor maintenance issues involving the roof for the remainder of 2006. Mr. Williams noted that ConSpecT Services oversaw repairs to the upper roof in 2005. These repairs will be to the lower roof in the back. He will furnish this service for a cost of $2,230 plus reimbursable expenses such as third party testing, photographic image reproduction, printing the RFP project manual and expenses related to any additional trips to the area due to inclement weather conditions. Staff recommends approving the COMMISSION APPROVED RESOLUTION N0.2249 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 936 NOTRE DAME AVENUE IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. ~ANI APRAHAMIAN) 6 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 9, 2006 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area () continued... proposal at an amount not to exceed $2,500. Upon a motion by King, seconded by Mr. COMMISSION APPROVED THE REQUEST FOR Downes and unanimously carried the PROPOSAL FOR ROOF MAINTENANCE OF THE Comm1SS10n a roved the re nest for LASALLE HOTEL AND ACCEPTED THE PROPOSAL pp q FROM CONSPECT SERVICES FOR AN AMOUNT proposal for roof maintenance of the LaSalle NOT To ExcEED $2,500 Hotel and accepted the proposal from ConSpecT Services for an amount not to exceed $2,500. (2) Commission approval requested for professional services in the South Bend Central Development Area. (Appraisal work of former Senor Kelly Parking Lot) Mr. Williams noted that there has been some interest expressed for development of the Senor Kelly site. In order to proceed, Staff requires a determination of the value of the property based upon two independent appraisals. Four appraisers were solicited. Two proposals for services were received. Jerome E. Michaels proposed to perform an appraisal for $2,000. R.E. Pitts proposed to perform the appraisal for $2,400. Staff recommends accepting both proposals. Mr. King asked when the appraisals were expected to be completed. Mr. Williams responded that they should be completed within a mo nth. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE REQUEST FoR Mr. Blake and unanimously carried, the PROposALS AND AccEPTED THE PROposAL FROM JEROME E. MICHAELS AND R.E. PITTS Commission approved the request for FOR THE SCOPE OF SERVICES AND FEE PROPOSED proposals and accepted the proposal from 7 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 9, 2006 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area continue ... Jerome E. Michaels and R.E. Pitts for the scope of services and fee proposed. D. Sample-Ewing Development Area (1) Commission approval requested for Access Agreement with the IRF and the Board of Public Works for 1217 Walnut St. (Kokoku Wire Property) Mr. Schalliol noted that the Access Agreement allows the Commission access to the property to have appraisals and environmental testing done in anticipation of acquiring the property. The Industrial Revolving Loan Fund currently owns the Kokoku Wire property. The Board of Public Works has approved its part of this three- party agreement. Upon a motion by Mr. King, seconded by Mr. COMMISSION APPROVED THE ACCESS Downes and unanimously carried, the AGREEMENT wITH THE IRF AND THE BOARD of PUBLIC WORKS FOR 121 ~ WALNUT ST. Con1n11SS10n approved the ACCeSS Agreement KOKOKU WIRE PROPERTY with the IRF and the Board of Public Works for 1217 Walnut St. (Kokoku Wire Property) E. Airport Economic Development Area (1) Commission approval requested for approval of Third Addendum to Lease between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission. (Blackthorn Golf Course Lease) Mr. Peterson noted that this addendum is 8 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 9, 2006 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area () continued... incidental to the Commission's work to bring a hotel to the Blackthorn Corporate Office Park. During staff's negotiation with the developer stemming back to 2001, Marathon required that the developer relocate his site plan, which has, in turn, necessitated the City relocating some of its sewer and water lines, as well as providing the developer access to be able to build a deck between the hotel development and the golf course. The Third Addendum expands the site thirty feet to the south to allow for all this to occur. The Addendum reserves an easement to the city's various utility improvements, but this step releases that 30-ft portion of the golf course on the south side from the financing documents of the outstanding bonds on the golf course. The Redevelopment Authority has approved the transaction and the Bond Trustee has signed off on it. It's a small piece of property, incidental to the entire bond financing transaction. This is a clean-up action necessary to get the site ready for development. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved the Third Addendum to Lease between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission. (Blackthorn Golf Course Lease) COMMISSION APPROVED THE THIRD ADDENDUM TO LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT AUTHORITY AND THE SOUTH BEND REDEVELOPMENT COMMISSION. (BLACKTHORN GOLF COURSE LEASE) 9 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 9, 2006 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (2) Commission approval requested for Resolution No. 2251 accepting the transfer of real property from the South Bend Redevelopment Authority. Mr. Peterson noted that when the City first undertook to develop the Blackthorn Office Park, there was a series of bonds issued. Those bonds were paid off in 2003. This resolution acknowledges that the Lease has been terminated and transfers all the property from the Redevelopment Authority back to the Redevelopment Commission pursuant to the terms of the Lease. Involved with this, also, is the Blackthorn Hotel site. The Commission will then be set for disposing of this property at its next meeting. Upon a motion by Downes, seconded by Mr. King and unanimously carried, the Commission approved Resolution No. 2251 accepting the transfer of real property from the South Bend Redevelopment Authority. F. South Bend Medical Services District There was no business in the South Bend Medical Services District. G. West Washington-Chapin Development Area There was no business in the West Washington- ChapinDevelopment Area. COMMISSION APPROVED RESOLUTION N0.2251 ACCEPTING THE TRANSFER OF REAL PROPERTY FROM THE SOUTH BEND REDEVELOPMENT AUTHORITY. 10 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 9, 2006 6. NEW BUSINESS (CONT.) H. South Side Development Area (1) Staff report on disposition of property in the South Side Development Area (ROI Holdings, LLC, 505 E. Ireland Road) Mr. Schalliol noted that at the time the property at 505 E. Ireland Road was put up for bid, there was one bid received, which did not meet the asking price. The proposal submitted by ROI Holdings is for construction of aone-story, multi-tenant building on the northeast corner of Ireland and Fellows. Staff has arrived at a negotiated purchase price of $10,000 for the site which the developer has accepted. Staff intends to immediately apply the $10,000 purchase price into public works infrastructure on adjacent property as part of comprehensive development of the area. Ms. Greene noted that the Commission has met the requirements of I. C. 3 6-7-14-22, having gone through the public disposition process. Now more than 30 days past the receipt of bids, the Commission may proceed with a negotiated sale of the property at an amount other than the original offering price. Mr. King asked about the need for a special zoning exception for the proposed use. Mr. Schalliol responded that the developer believes he has three office tenants for the development which will not require a zoning exception. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission accepted the staff report related COMMISSION ACCEPTED THE STAFF REPORT RELATED TO DISPOSITION OF SOS E. IRELAND ROAD AND AUTHORIZED ALL NECESSARY LEGAL 11 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 9, 2006 6. NEW BUSINESS (CONT.) H. South Side Development Area () continued... to disposition of 505 E. Ireland Road and authorized all necessary legal actions to be taken to complete the disposition. I. Northeast Neighborhood Development Area (1) Commission approval requested for professional services for the Northeast Neighborhood Development Area (Survey services for a proposed amendment of the NNDA boundaries) Mr. Schalliol noted that Lang, Feeney and Associates has submitted a proposal to provide survey services for a proposed expansion to the southern boundary of the Northeast Neighborhood Development Area. The fee is $500. Staff requests approval of the proposal. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved the request for proposal for survey services and accepted the proposal from Lang, Feeney and Associates for the scope of services and fee proposed. (2) Filing of Resolution No. 2250 amending the boundary of the NNDA (EA #1) and setting a Public Hearing on Resolution No. 2250 for 10:00 a.m., July 7, 2006. Mr. Schalliol noted that staff requests that the public hearing be set for 10:00 a.m., July 21, 2006. ACTIONS TO BE TAKEN TO COMPLETE THE DISPOSITION COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR SURVEY SERVICES AND ACCEPTED THE PROPOSAL FROM LANG, FEENEY AND ASSOCIATES FOR THE SCOPE OF SERVICES AND FEE PROPOSED 12 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 9, 2006 6. NEW BUSINESS (CONT.) I. Northeast Neighborhood Development Area continue ... Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission accepted for filing Resolution No. 2250 and set the public hearing on Resolution No. 2250 for 10:00 a.m., July 21, 2006. J. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. 7. PROGRESS REPORTS Mr. Schalliol noted that the City Plan document is PROGRESS REPORTS basically complete in draft form. Everyone is urged to review it online or at one of the many public presentations available over the next month. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NExT COMMISSION MEETING a Rescheduled Meeting on Friday, June 23, 2006 at 10:00 a.m. 13 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 9, 2006 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Downes made a motion that the meeting be adjourned. Mr. Blake seconded the motion and the meeting was adjourned at 10:20 a.m. Donald E. Inks, Director Marcia I. Jones, President 14