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HomeMy WebLinkAboutRM 09-21-79September 2 10:00 A.M. Presiding 0 1. ROLL Members Legal SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING 1979 1200 County -City Building 227 W. Jefferson Boulevard 'ficer: F. Jay Nimtz, South Bend, Indiana 46601 President Present: Mr. F. Jay Nimtz, President Mr. Lloyd E. Robinson, Sr., Vice President Mr. A. Peter Donaldson, Secretary Mr, Robert J. Cira; Assistant Secretary Ms. Paula N. Auburn, Member )unsel : Redevelopment Staff: Communi y Development Staff: News Media: Guests: 2. APPROVAL OF MINUTES Mr. Kevin J. Butler Mr. Carl Ellison, Director Mrs. Ann Kolata, Deputy Director Mr. Kevin C. Horton, Real Estate Officer Ms. Ann Bathon, Research Associate Mrs. Jane Zimmerman, Executive Secretary Ms. Denise Fleming, Secretary Mr. James Harcus, Director, Bureau of Housing Ms. Barbara Radican, Performance Standards Officer Ms. Shirley McCoy, Contract Compliance Officer Mr. J. Scott Brink, Photographer, WNDU -TV Mr. Dave Anderson, Reporter, WNDU -TV Ms. Jeanne Derbeck, Reporter, South Bend Tribune Mr. John McKnight, Reporter, WSBT -TV Mr. Steve Neher, Photographer, WSBT -TV Mr. Larry Ford, Reporter, WSJV -TV Mr. John Winey, Photographer, WSJV -TV Ms. Glenda Rae Hernandez, President, S.E. PAC On moti n by Mr. Robinson, seconded by Ms. Auburn, MINUTES OF REGULAR and una imously carried, the Minutes of the Regular MEETING OF Meeting of September 7, 1979, were approved. SEPTEMBER 7, 1979 South Bend Redevelopment Commission Regular Mee ing — September 21, 1979 3. APPROVAL O F CLAIMS On moti n by Mr. Donaldson, seconded by Mr. Cira, and una imously carried, the claims -- totalling $121,59 .18 were allowed and ordered to be paid. The aut orized claims are: REDEVELOPMENT REVOLVI Payroll: 8 -25 -79 to 9 -7 -79 Business Systems, Inc. Schilli gs Printing Company, Inc. South Bend Tribune Amoco 0'1 Company Coffee ime Service REDEVELOPMENT DISTRICT CAPITAL Abstract Co. of St. Joseph County, Inc REDEVELOPMENT DISTRICT CAPITAL OF 1972 The Ame scan City Corporation Gruen A sociates, Inc. . E. Al IND. R -66 Barnes lectric, Inc. Kevin J Butler Indiana & Michigan Electric Company Northeri Indiana Public Service Co. Otis E1 vator Company Redevelopment Revolving Fund Paul J. Falduto Clyde E Williams & Associates, Inc. Ann C. Bathon Ray Bre en Ray Bre en Jordan's Mishawaka Transfer, Inc. Thomas E. Luneen, Attorney at Law Leo J. Lamberson, Attorney at Law U. S. V n of Indiana, °Inc. Richard D. Doyle, Attorney at Law TOTA L TOTAL TOTAL $ 4,348.11 68.49 17.15 61.20 57.41 27.65 $ 4,580.01 $ 70.00 $ 70.00 $ 41,250.00 24,502.01 $ 65,752.01 $ 750.10 860.81 208.11 188.61 35.41 16,699.86 320.00 19.25 320.00 270.30 106.00 224.39 2,919.00 377.00 595.80 A^- - TOTAL $ 24,315.44 -2- CLAIMS APPROVED South Bend Redevelopment Commission Regular Meeting - September 21, 1979 3. APPROVAL OF CLAIMS (continued) 312 LOAN Tri-State Home Improvement, Inc. & Georgia Bingham $ 1,917.75 The Kiss all Co. 397.69 Wickes Limber & Douglas Way 319.56 Big "C" umber 163.72 Center S rvices Company & T. Brooks Brademas 24,076.00 TOTAL $ 26,874.72 GRAND TOTAL $121,592.18 4. COMMUN I CATI There were no communications presented to the Commission. 5. OLD BUSI4 ESS There was no old business to present to the Commission. 6. NEW BUSI ESS a. Commission approval loan applications: Name uested for the following 312 Amount Loan No. NO COMMUNICATIONS PRESENTED NO OLD BUSINESS PRESENTED TWO 312 LOAN APPLICATIONS APPROVED Eliza Haynes $8,850.00 18 /SOU - 2/110/1 730 4. Johnson Soutl Bend, IN. 46628 *Jeanie Frisz $21,850.00 18 /SOU- 2/112/1 617 Rex Souti Bend, IN. 46616 * Please note: This 312 loan application was not included on the agenda, as it was presented to the Redevelopment Department after the agenda had been completed. Mr. arcus: There had been a previous loan with Eliza Haynes whici was approved for $5,150.00. I think it would be appropriate for the Commission to rescind the prior loan and approve the increase in the cost of rehabilitation and the increase in the specification which will add to the impact in that neighborhood. -3- South Bend edevelopment Commission Regular Mee ing ¢ September 21, 1979 6. NEW BUSM a. 3121Lo_an applications (continued) Mr.IRobinson made a motion to rescind the Com ission's previous approval of a 312 loan PRIOR APPROVAL OF A gra ted to Ms. Eliza Haynes, of 730 N. Johnson 312 LOAN APPLICATION South Bend, Indinaa, in the amount of $5,150.00, TO ELIZA HAYNES sec nded by Mr. Cira, and the motion was RESCINDED unanimously carried. Mr. Cira then made a motion to approve a new NEW 312 LOAN APPLICATION 312 loan to Ms. Eliza Haynes of 730 N. Johnson, APPROVED FOR ELIZA HAYNES South Bend, Indiana in the amount of $8,850.00, seconded by Mr. Donaldson, and the motion was unanimously carried. Mr. Ellison: On our next 312 loan application, to Jeanne Frisz, the amount of the loan is high because it includes the refinancing of the indebtedness of the property. Mr. Robinson made a motion to approve a 312 loan 312 LOAN APPLICATION to deanne Frisz, 617 Rex, South Bend, Indiana, APPROVED FOR JEANNE FRISZ in the amount of $21,850.00, seconded by Mr. Donaldson, and the motion was unanimously carried. b. Commission approval requested for Change Order CHANGE ORDER #2 WITH #2, with Charles Brown Maintenance Co., Inc. for CHARLES BROWN MAINTENANCE a decrease in contract price of 500.00, for an CO., INC. APPROVED FOR A amended contract total of 0.00, at the address of DECREASE IN CONTRACT 533 East Indiana, as sot forth in letter from Mr. James Harcus, Director, Bureau of Housing. Mr. Harcus: When rehabilitation of 533 East Indiana was about to commence, homeowner refused entry of contractor stating that she was in default of mortgage and property was about to be repossessed. Bureau attempted to contact owner but could not. In accordance witi normal procedure, a letter was mailed to owner on Jul 31, 1979, requesting discussion of the problem, and fre dom of entry for contractor, and notice that unless res onse was received within five (5) days, the Bureau wou d take steps to cancel contract. On the afternoon of ugust 10, 1979, Bureau Director visited property intending to make a final appeal and to determine whether or riot the Bureau had avenues which could mitigate plight of residents. The property gave the appearance of being empty and a neighbor confirmed its vacancy. In light of the foregoing, the Commission is requested to approve Cha ge Order #2 deleting 533 E. Indiana Avenue from the contract. This action reduces cost of $500.00 -4- South Bend Commission Regular Mee �edevelopment ing - September 21, 1979 6. NEW BUS11NESS b. (cohtinued) Mr. Donaldson made a motion to approve Change Order #2 with Charles Brown Maintenance Co., Inc. reducing contract by $500.00, at the address of 533 E. Indiana Avenue, seconded by Ms. Auburn, and the motion was unanimously cariried. c. Co m ission a n approval requested for Resolution RESOLUTION #591 #59 encouraging the Common Council of APPROVED Sou h Bend, 'Indiana, to be an urban dev lopment area. Mr. Ellison: Members of the Commission... In its last session the legislature passed a State Law all wing a ten year tax abatement in certain development areas which are generally described as -edevelopment areas. The new statute requires tha the Common Council, by resolution, designate are s to be urban development areas in order that a p titioner can then receive a ten year abatement of roperty taxes on improvements to the property. Thi abatement is based on a formula allowing for 1000 abatement the first year and is reduced to 5% batement by the tenth year. The Common Council has a resolution set for action on 3eptember 24, -1979 to designate the entire IND. R-65 area as an urban development area. In light of the fact that the Commission has authority over the area, the staff and I thought it might be appropriate for the Commission to pass a resolution enc uraging the Council to designate the urban development area thereby enabling First Bank and Rahi Properties to petition for tax abatement. Mr. Nimtz: I have considered this for quite some tim , and as part of the team on the legislation, my luestion to the Commission is whether we should rec mmend the urban development designation for the entire R -66 area at the present time. Although I believe the final authority is in the City Council rat er than the Commission, I feel this designation sho ld be considered project by project or parcel by arcel. Mr. Auburn: As a newcomer, can you explain to me if thi is how it has always been done, and the advantages of hat approach? -5- South Bend Commission Regular Mee �edevelopment ing - September 21, 1979 6. NEW BUSINESS c. (continued) Mr. Nimtz: I don't know if there are any advantages or disadvantages, except I think that if we pass a resolution now for the entire Ind R -66 area, we are committed to the entire area, not knowing what may come in to the other par els. And although the City Council may do as hey wish on Monday concerning this resolution, thi is our recommendation to the council. It is my eeling that we should review each project and mak recommendations to the Council at that time. Mr. Butler: My understanding is that the specific pur ose or idea behind this particular action, at thi point in time is for the bank /hotel project as they are the ones who requested it. For purposes of enc uraging quality development elsewhere in the Ind. R -6 area, this can be used as a good bargaining or neg tiating device in the future. Mr. Donaldson: Did the First Bank /Hotel people request the entire area? Mr. Butler: I don't know if they requested the entire are ; their interests are only in their particular par els. Ms. Auburn: It does not seem to me that it would be feasible to go on an entire area basis. This can be an incentive used in negotiations when dealing with businesses com -ing into the system. It seems to me that we would be committing ourselves to something that over a long term may in retrospect not be a good decision. Ms. Derbeck: I don't understand what you are saying whei you mention amending the resolution. Mr. Ellison: What the Commission is doing is encouraging the Common Council to specifically allow or grant the urban development area designation to the project area otherwise known as the "hole ". Mr. Anderson: What do the statutes require? Mr. Ellison: The statute specifically requires that the Common Council designate an area an urban development area by using the process we would use to declare an area a redevelopment one. If the council does that, then based on a property owner petition, that property can receive an tbatement for increased taxation due to improvements ove a ten year period. South Bend Commission Regular Mee �edevelopment ing - September 21, 1979 6. NEW BUS11NESS c. (MrJ. Ellison continues)... "Th Council's designation of an urban dev lopment area by resolution is necessary to all )w the private owner to receive that abate - men ." Mr. Nimtz: This is a specific requirement under the tax abatement statute. Ms. Derbeck: What about the Century Mall ... you hav already declared that an urban renewal area. Mr. tax des- Mr. tax get Ellison: If the private owners wish a ten year abatement they will have to have a Common Council gnation. Dave Anderson: What would this impact be on the rolls of South Bend? Would this abatement delay ;ing the properties at a certain time? Mr. Ellison: It means that we will not collect full tax 2s on the project for ten years. With the Bank/ Mar iott project you are talking about more than sim ly an increase in the tax base. Mr. Nimtz: This does not include the personal property ' tax s, as they will be collected on all property in the pro ect area. Mr. Ellison: The press should understand that the Com ission is not.saying that abatement should be wit held from the Bank /Hotel project. I think we sug est the opposite, that it is necessary to make the dea work economically, but that abatement with respect to he balance of downtown should be reviewed on a project by project basis. Mr. Donaldson made a motion to approve and adopt Resolution #591, as amended, encouraging the Common Council of South Bend, Indiana to declare disposition parcels #4-1, 4 -31, and 4 -32 of the downtown area to be an urban development area, seconded by Mr. Robinson, and the mot on was unanimously carried. d. Commission approval requested to permit the City of South Bend to construct Urban Development Action Grant Improvements on Disposition Parcels #4 -1, 4 -3 , and 4 -32, within IND. R -66, said parcels commonly referred to as the "Hole -7- APPROVAL GRANTED FOR IMPROVEMENTS MADE ON DISPOSITION PARCELS #4 -1, 4 -31, AND 4 -32 South Bend Commission Regular Mee �edevelopment ing - September 21, 1979 6. NEW BUSINESS d. (continued) Mr. Ellison: Due to an oversight the Commission nev r formally allowed the City of South Bend, thr ugh the Board of Public Works, to construct the improvements that are now being done on the "We" project. We felt that the oversight should be orrected. Mr. Robinson made a motion to approve and ratify the activities on behalf of the City of South Bend, through the Board of Public Works which are being undertaken on Disposition Parcels #4 -1, 4 -31, and 4-32, within Ind. R -66, said parcels commonly ref rred to as the "Hole ", relative to the Urban Dev lopment Action Grant Improvements, seconded by Ms. Auburn, and the motion was unanimously carried. 7. PROGRES$ REPORTS a. Century Mall Acquisition Mr. Butler: This morning I gave Mr. Ellison the first of the Clerk's Deeds on our condemnation activities in the Century Mall area relative to the Boul Jeff property. The appraisers, as I reported last time, had submitted their report to the court. Based on that rep rt, the department has submitted its check in the amo nt of $97,000.00 which was the amount of the court app inted appraisal, to the clerk of the court in exc ange for the Clerk's Deed. The deed will be rec rded today. Ms. Derbeck: Was the amount paid more than the depart- ment expected to pay? Mr. Butler: I believe the offering price was public, and it was $94,600.00. Mr. Butler: Mr. Nimtz, I would also like to say that we are in process of negotiating the lease agreement with the Bank and Rahn Properties, the developer of the hotel property (facility). Aetna is purchasing the industrial bond for th hotel project and has indicated that they must close by Oc ober 1; so we may have to have a special meeting for ap roval of the lease agreements, prior to October 1, 1979. -8- PROGRESS ON CENTURY MALL ACQUISITION South Bend edevelopment Commission Regular Mee ing - September 21, 1979 8. NEXT COMMISSION MEETING The nex regularly scheduled South Bend Redevelopment Commission Meeting will be held on October 5, 1979, at 10:0 A.M. 9. ADJOURNMENT There b ing no further business to come before the Commission, Mr. Robinson made a motion that the meeting be adjo rned, seconded by Mr. Donaldson, and the motion was una imously carried. The meeting was adjourned at 10:30 A.M. NEXT COMMISSION MEETING ADJOURNMENT V6&64��� z, President Carl Ellison, Executive Director