HomeMy WebLinkAboutRM 10-05-79October 5,
10:00 A.M.
Presiding
1. ROLL C
Member
Member
Legal
SOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
1979 1200 County -City Building
227 West Jefferson Boulevard
)fficer: F. Jay Nimtz, South Bend, Indiana 46601
President
Present:
Absent:
uns el :
Redevelopment Staff:
Commun ty Development
S aff:
Mr. F. Jay Nimtz, President
Mr. A. Peter Donaldson, Secretary
Ms. Paula N. Auburn, Member
Mr. Lloyd E. Robinson, Sr., Vice President
Mr. Robert J. Cira, Assistant Secretary
Mr. Kevin J. Butler
Mr. Carl Ellison, Director
Ms. Ann Kolata, Deputy Director
Mr. Timothy K. Eckerle, Assistant Director
Mr. Kevin Horton, Real Estate Officer
Ms. Ann Bathon, Acquisition Specialist
Mr. Bill Fox, Relocation Specialist
Mrs. Jane Zimmerman, Executive Secretary
Ms. Denise Fleming, Secretary
Mrs. Barbara Radican, Performance Standards Monitor
Mrs. Theresa Ellett, Labor Standards Monitor
Mr. James Harcus, Director, Bureau of Housing
News Media: Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Ms.
Guests: Mr.
Ms.
Mr.
Ms.
2. APPROVAL OF MINUTES
Dave Anderson, Reporter, WNDU -TV
Dick Nemeth, Photographer, WNDU -TV
John McKnight, Reporter, WSBT -TV
Isaiah Cook, Photographer, WSBT -TV
Larry Ford, Reporter, WSJV -TV
John Winey, Photographer, WSJV -TV
Jeanne Derbeck, Reporter, South Bend Tribune
Ernest J. Szarwark, Attorney at Law, (Thornburg,
McGill, etc.)
Glenda Rae Hernandez, Southeast PAC
C. G. Clark, Holladay Corporation
Barbara Schankerman, Concerned Citizen
On mot 'on by Ms. Auburn, seconded by Mr. Donaldson, MINUTES OF REGULAR
and un nimously carried, the Minutes of the Regular MEETING OF SEPTEMBER
Meeting of September 21, 1979, were approved. 21, 1979 APPROVED
South Bend Redevelopment Commission
Regular Me ting - October 5, 1979
3. APPROVAL OF CLAIMS
On motion by Mr. Donaldson, seconded by Ms. Auburn, CLAIMS APPROVED
and unanimously carried, the claims -- totalling
$966,094.30 were allowed and ordered to be paid.
The authorized claims are:
REDEVEILOPMENT REVOLVING FUND
Payrol 1 : 9 -8 -79 to 9 -21 -79 $ 5,028.41
Kevin J. Butler 200.00
I. B. M. Corporation 64.32
Indian Bell Telephone Co. 352.80
Patrick M. McMahon 93.65
National Community Development Association 30.00
Postmaster 65.18
Coffee Time Services 36.65
Society of Real Estate Appraisers 295.50
Picture Equipment Company 24.50
TOTAL $ 6,191.01
REDEVELOPMENT DISTRICT CAPITAL
Abstract Company of St. Joseph County, Inc. $ 195.00
Community Development 1,956.61
TOTAL $ 2,151.61
REDEVELOPMENT DISTRICT CAPITAL OF 1972
Gruen Associates, Inc. $ 9,513.42
TOTAL $ 9,513.42
P. E. IA. IND. R -66
Alliec
Construction Company
$ 1,148.59
Commu
ity Development
45,607.50
South
Bend Tribune
19.68
Jorda
's Mishawaka Transfer, Inc.
147.18
Jorda
's Mishawaka Transfer, Inc.
226.99
Means
Service Inc.
9.36
Irvin
J. Manuszak, Clerk (Parcel #9 -22)
264,900.00
Irvin
J. Manuszak, Clerk (Parcel #8 -9)
119,000.00
Maurice
M. Tulchinsky, Attorney
324.50
Maurice
M. Tulchinsky, Attorney
195.00
Carl _eidler,
Attorney -at -Law
90.35
Carl
eidler, Attorney -at -Law
99.00
Leo J
Lamberson, Attorney -at -Law
278.50
-2-
South Benq Redevelopment Commission
Regular M eting - October 5, 1979
3. APPROVAL OF CLAIMS (continued)
P. E. A. IND. R -66 (continued)
Hermar Newsome, Attorney -at -Law
John . Pence Associates, Inc.
St. Joseph County Treasurer (Parcel #9 -20)
Arthur A. Frederickson (Parcel #9 -20)
Carl . Ginz (Parcel #8 -11)
Carl N. Ginz (Parcel #8 -11)
St. Joseph County Treasurer (Parcels #9 -28
and #9 -29)
First Bank & Trust Company of South Bend,
Trustee of the Edith M. Tucker Trust
(Par els #9 -28 and #9 -29)
Julius L. Tucker (Parcels #9 -28 and #9 -29)
Ann C. Bathon
4. COMMUMICATI
$ 1,459.61
700.00
2,263.75
79,736.25
8,207.89
111,792.11
8,280.00
75,930.00
227,790.00
nn nn
TOTAL $948,238.26
GRAND TOTAL $966,094.30
Mr. Ellison noted that the staff had no communications to
present.
Mr. Nimtz, however, presented two communications.
The first communication was a letter to Mr. F. Jay Nimtz,
from Mr. Christopher J. Murphy III, President of the
First lBank & Trust Company which reads as follows:
Mt. F. Jay Nimtz
Chai&man
Depaittment o4 Redevelopment
City o4 South Bend
1200 County-City 8uitding
South end. Indiana 46601
Co
U jj U'S
OatobeA 2, 1979
utations on a zupen ejjo&t: we have cteatced one mote
in moving towoAds the tet zat on o4 that dream that aI'2
.ave had im many yeas:
-3-
LETTER ADDRESSED
TO F. JAY NIMTZ
FROM CHRISTOPHER
J. MURPHY III
FROM FIRST BANK
South Benj Redevelopment Commission
Regular Meting - October 5, 1979
4. COMMUNICATIONS
(letter addressed to Mr. F. Jay Nimtz, from
Mr. Christopher J. Murphy III, President of First
Bank N Trust Company) continues as follows...
"a to owed downtown. you and the Department of
Redevetopment, the commussionetus, and a22 ojj the
empto eez cute to be congratutated 4ott the teadett
sh.ip Aote you have ptayed in trying to develop
the downtown. We very much appreciate your patience
and y utt attentiveness to the "hate" ptoj ec t. I�
it weAe not jot a t o4 ups putting together to my to
do something jot South Bend, it is unttike2y that we
would even have beached this point. Fo,'rtunatety,
the City is btessed with a dedicated eouncit and
mayout o46.iee as we.2e as a very sttong and weU-
manag d Redevetopment Department. We very much want
to con tatutate you 4ot the work you have done
over the past number o4 yearns and tet you know
that we w.t Pt continue to work with the Department
o4 Re eveeopment to continue to devetop South Bend.
We took 4otwatd to the "Start o6 Consttuettion
Ceremony" in two on three weeks and a chance to
cetebAate this pro j eet being 6.inatty and comptete2y
ojj the gbound. The negotiations jor the gttound
tease gnd the tax abatement issues were a t vets y
impottt nt to putting this pfLo f eat togetheA. 14 we
can get a t of the documentation eompteted in the next
week ot so, things w.itt be att tied down in time 4ot
the 4estivities on the 19th. we took 4orward to youA
loininhi ups at that time."
Mr. Ni
from M
the De
aloud:
S-ineetety youtus,
S/
Cktatophet J. Murphy III
itz then stated that he had received a letter
1. Timothy K. Eckerle, Assistant Director, of
iartment of Redevelopment which he read
-4-
LETTER OF RESIGNATION
RECEIVED FROM TIMOTHY
K. ECKERLE
South Benj Redevelopment Commission
Regular M eting — October 5, 1979
4. COMMUNICATIONS
(letter to Mr. F. Jay Nimtz, from Timothy K. Eckerle)
continues as follows.......
Mt. F. Jay N,imtz
Pnesi ent, Redeve:Copment
Commi6sion
511 W t Cot4ax Avenue
South Bend, Indiana 46601
It is with some negnet= that I must in4onm you, that
I am AesignEng 4&om the DepaAtment o g Redeve.26 proem. I
have accepted the position of Diteeton o f P.Lann Eng with
Harvey, It.Unois . The pozition in Harvey o j4etus a xa&e
oppo.kt n i ty and chaUenge. The e4jeet ive date o4 my
taignation sha?t be Octobetc 17, 1979.
the
you
end
I have found it ve r y en1 o yabte wotLk i.ng 4o& you and
a m-c s sion. I appnect.ated the oppoAtu.nit i,es that
a e me and wish you continued �uccezz with your
v tus. Good Luck.
S.ineetcety,
S/
Timothy K. Eckvtte
A&sistant Ditectm
After ublicly acknowledging Mr. Eckerle's fine service
and wi hing him well, the Chair indicated that the letters
would a received and placed on file..
5. OLD BUSINESS
There was no old business to present to the Commission.
6. NEW BUSINESS
a. Commission approval requested for Change Order No. 3,
with B &B Plumbing, for an increase in contract Brice
of $300.00, for an amended contract total of $495.00,
at the address of 1402 Lincolnway West, as set forth
in letter from Mr. James Harcus, Director; Bureau of
Ho sins.
-5-
NO OLD BUSINESS
PRESENTED
CHANGE ORDER #3
WITH B &B PLUMBING
APPROVED FOR AN
INCREASE IN CONTRACT
PRICE
South Bend Redevelopment Cammissfon
Regular Me ting - October 5, 1979
6. NEW BUSINESS
a. cohtinued...
Mr. Harcus: While the rehabilitation contract
for 1402 Lincolnway West was in progress it was
di covered that the old countertop which was
to be replaced could not be separated from
existing sink. The sink itself, while not
evidencing significant porcelain chips was very
old. Just prior to actual construction start
up the homeowner advised this desk that a slow
bathroom leak may exist as evidenced by a ceiling
stain which did not exist before. The
Co missioners are requested to approve Change
Or er No. 3 which would correct the bathroom
le k and specify the replacement of kitchen
si k for a cost increase of $300.00.
Mr, made a motion to approve Change
Or er No. 3 with B & B Plumbing for an increase
in contract price of $300.00, for an amended
co tract total of $495.00, at the address of
14 )2 Lincolnway West, seconded by Ms. Auburn,
ano the motion was unanimously carried.
b. Co*ission a
with Plaia C
co
tract pr
to
al of 4
So
in, as s
D1
ector, B
pproval requested for Change Order No. 1
onstruction Company, for an increase in
ce of $239.00. for an amended contract
, at the ad
i in letter
ureau of Houtinq.
dress of
Mr. James Harcus
Mr. Harcus: The rehabilitation contract for 946
East Sorin Street is being serviced. We now find
that the bathroom cold air return is broken, the
floor tile is beginning to curl and the ceiling
has cracked plaster. Noting the health and safety
aspect of the first two (2) items and prospective
co tinning deterioration of the ceiling resulting
from normal bathroom humidity, we request that
the Commissioners approve Change Order #1 authorizing
correction of said items. Cost of such is $239.00
Mr
No
in
to
se
ca
Donaldson made a motion to approve Change Order
1 with Plaia Construction Company, for an increase
contract price of $239.00, for an amended contract
:al of $4,132.00, at the address of 946 East Sorin,
:onded by Ms. Auburn, and the motion was unanimously
•r i ed .
IM
CHANGE ORDER #1
WITH PLAIA CONSTRUC-
TION CO., APPROVED
FOR AN INCREASE IN
CONTRACT PRICE
South Bo
Regular
6. NEW
c.
e.
?nd
Redevelopment Commission
Meeting
- October 5, 1979
BUSINESS
approval requested for an Agreement
Commission
f
r Professional and Technical Services, between
th
e City of South Bend, Department of Redevelo -
m
nt, and Mr. Ron Gettel, Re: East Race, subject
tc
legal counsel review and approval.
Ellison: Mr. Chairman, I would like to say
Mr.
t
at these contracts are for appraisal services
t
at are now necessary in the East Bank and
M
nroe /Sample areas.
Ms.
Auburn made a motion to approve an Agreement
for
Professional and Technical Services, between
t
e City of South Bend, Department of Redevelop-
m
nt, and Mr. Ron Gettel, concerning the East
Race
project, and that the President and
Secretary
be authorized to enter into an agree -
m
nt, subject to legal counsel review and approva'
seconded
by Mr. Donaldson, and the motion was
unanimously
carried.
Commission
approval requested for an Agreement
for
Professional and Technical Services, between
Th.e
City of South Bend, Department of Redevelo mei
and
Mr. Ralph Lauver, Re: East Race, subject to
T—egal
counsel review and approval.
Auburn made a motion to approve an Agreement
Ms.
for
professional and Technical Services, between
the
City of South Bend, Department of Redevelopmei
and
Mr. Ralph Lauver, concerning the East Bank
project,
and that the President and Secretary
be
authorized to enter into an agreement, subject
legal
counsel review and approval, seconded by
Mr.
Donaldson, and the motion was unanimously
carried.
Commission
approval requested for Agreement for
Trofessional
and Technical Services, between the
City
of South Bend, Department of Redevelopment,
and
Mr. John Pence, Re: Monroe-Sample, subject
tole
al counsel review and approval.
Donaldson made a motion to approve an Agree-
Mr.
ment
for Professional and Technical Services,
between
the City of South Bend, Department of
Redevelopment,
and Mr. Ralph Lauver, concerning
the
Monroe - Sample project, and that the President
and
Secretary be authorized to enter into an afire(
m
nt, subject to legal counsel review and approva
seconded
by Ms. Auburn, and the motion was unanim(
-7-
AGREEMENT FOR
PROFESSIONAL AND
TECHNICAL SERVICES
OF MR RON GETTEL
APPROVED FOR THE
EAST RACE PROJECT
APPROVAL GRANTED FOR
PROFESSIONAL AND
it, TECHNICAL SERVICES OF
MR. RALPH LAUVER FOR
THE EAST RACE PROJECT
it,
to
AGREEMENT FOR PRO-
FESSIONAL AND TECH-
NICAL SERVICES OF
MR. JOHN G. PENCE FOR
MONROE - SAMPLE PROJECT
)usly carried.
South Benj Redevelopment Commission
Regular Meting - October 5, 1979
6. NEW BOSINESS (continued)
f. Commission approval requested for Agreement
for Professional and Technical Services,
between the City of South Bend, Department
o_f Redevelopment, and Mr. Richard Nichols,
R ': Monroe - Sample, subJ ect to legal counsel
relview and approval.
Mr. Donaldson made a motion to approve an
Agreement for Professional and Technical
Services, between the City of South Bend,
Department of Redevelopment, and
Mr. Richard Nichols concerning the Monroe-
Sample project, and that the President and
Secretary be authorized to enter into an
agreement, subject to legal counsel review
and approval, seconded by Ms. Auburn, and
the motion was unanimously carried.
g. Commission approval requested for Resolution
#594, tax abatement relative to certain portions
o_f an area commonly referred to as Block 6 within
Ind. R -66.
Mr. Ellison: The resolution has been prepared
relative to a petition that has been filed with
the Common Council for an urban development
area designation in order to provide a ten year
abatement for the development on Block 6 which
was announced a few days ago by the Mayor. The
development in question is the construction
of an office building that is expected to
provide approximately 40 jobs. I have had
some conversation with the Holladay Corporation
and I am satisfied that an abatement for that
particular project is appropriate. I would,
therefore, recommend that the Commission approve
Resolution #594 which encourages the Common
Council to give the urban development area
designation to that particular project area
which is described by legal description
in the resolution.
Mr. Butler: Mr. Chairman, briefly, I have
represented the Holladay Corporation on
matters in the past and represent them on
matters now. Therefore, I will excuse
myself on making any comment with respect
to this particular item.
AGREEMENT FOR PRO-
FESSIONAL AND TECH-
NICAL SERVICES OF
MR. RICHARD NICHOLS
APPROVED FOR THE
MONROE- SAMPLE PROJECT
RESOLUTION #594
APPROVED FOR TAX
ABATEMENT TO CERTAIN
PORTIONS OF AN AREA
IN BLOCK 6, IND. R -66
(HOLLADAY CORPORATION)
South Ben Redevelopment Commission
Regular M eting - October 5, 1979
6. NEW BUSINESS
g. colntinued...
h
. Nimtz: I presume this resolution follows
hers that have been passed so that there
uld be no question as to the legality or
rding of the resolution.
Mr. Ellison: It follows the same format as
the resolution regarding the First Bank Center
pr ject.
Mr. Donaldson made a motion to adopt
Resolution #594 for tax abatement relative to
certain portions of an area commonly referred
to as Block 6 within Ind. R -66 (Holladay
Corporation), and that the President and
Se retary be authorized to execute such
do ument, seconded by Ms. Auburn, and the
mo ion was unanimously carried.
qTa abatement request relative to certain
o tions of an area commonly referred to as
"E st Bank ".
Mr. Ellison: The staff would appreciate
it if the Chair would recognize Mr. Ernest
Szarwark, an attorney with the Thornburg,
McGill, etc. law firm, who is here representing
the petitioners who have also petitioned the
Co mon Council by resolution for abatement
in this particular area.
Mr. Nimtz: The Chair will recognize
Mr. Ernest Szarwark.
Mr Szarwark: The area in question is located
wi hin the East Bank area. It is directly
ac oss the river from Century Center, commonly
re erred to as the "old water works property ".
Th buildings presently there are in very
po r condition. The proposal involves
de olition of the existing building and
replacing them with modern structures. The
st uctures would be used for small shops
ani offices. We are going to try to have
a iice restaurant included in the structure. I
believe this project will be something the
pe ple can be proud of because it is going
to help the downtown area by creating jobs.
The Common Council has indicated that it would
ap rove a bond issue for the construction of
ISO
DISCUSSIONS OF TAX
ABATEMENT REQUEST
RELATIVE TO CERTAIN
PORTIONS OF AN AREA
COMMONLY REFERRED TO
AS "EAST BANK"
South Ben Redevelopment Commission
Regular M eting - October 5, 1979
6. NEW BUSINESS
h. Mr. Szarwark continues...
he building, and I believe it meets
the general guidelines which are set
down in the statutes for tax abatement.
These buildings which now exist on the
land are in bad shape and they are in
a part of the town which South Bend is
trying to redevelop and make more
pr fitable. For these purposes we
wo ld like to encourage the Common
Co ncil to approve the abatement
measure. The abatement will essentially
provide the additional stimulus to
investors to invest in new buildings
and to complete it so that it would be
a viable project. The abatement
procedure does not mean that this
project will be a complete write -off.
What the statute basically says is this...
as far as the property is concerned, we are
going to continue to pay taxes for the full
v.a ue of the property, underlying ground
itself, it is just that as far as the
additional increase in the value of the
property due to the new structure that, as
far as the additional increase in the
va ue of the property due to the new
structure that is going to be completed,
we will only have to pay taxes on a portion
of the additional value for the first ten years.
For the first year the tax base will not be
in reased at all by the value of the building,
and there is a decreasing formula so that by
the end of the fifth year the abatement is only
50°, and by the end of the tenth year, it is
only 5%."
Mr. Nimtz: Mr. Butler, what is our legal position
wi h the HUD regulations concerning this project
wi hout a formal resolution?
Mr,
im
gi:N
abz
deN
Butler: I don't believe the HUD regulations are
)lved, but I believe that the abatement statute
?s the authority for designating an area an
:ement area, (it is referred to as an urban
�lopment area in the statute) to the Common Council.
-10-
South Benj Redevelopment Commission
Regular M eting - October 5, 1979
6. NEW BUSINNESS
h. Mrs. Butler continues.....
The designation is to be accomplished by
following the procedures that the Department
of Redevelopment follows in designating an
area a "blighted" area. In other words, the
Common Council should follow the same procedures
we are now using with respect to the East Bank
anJ Monroe Sample. I am questioning whether
the Common Council simply, by resolution can
ap rove this area or this particular project
as an abatement project for an urban renewal
ar a, without following these procedures. I
th nk with respect to the "hole" the Common
Co ncil was adopting the Commission's findings
wh ch were made back in 1967 and 1968 when we
de ignated the entire downtown area as an
urban renewal area and also the Redevelopment
Commission has confirmed that finding a number
of times since 1968. In this case, on the
East Bank, we have not yet made a determination
and I am not certain whether you intend to have
th Common Council follow the procedures that
we will be following.
Mr. Szarwark: First of all, my understanding
is that the Redevelopment Commission will not
act officially for a declaratory resolution
until around Christmas time at the earliest,
anc that is too late for this project. We
ho a to have construction underway by.that
ti e.
Mr. Nimtz: I believe what we are saying to you
is that you are involved in some very technical
procedures and language. Our sympathies are
with you and I think all we are asking you to do
is make sure everything goes right, because we
haven't done a lot of preliminary work and we
don't want you to end up with the Indiana
State Board of Tax Commissioners saying the
procedures haven't been followed and you
having a tax suit five years from now.
Mr. Szarwark: I fully appreciate your sentiments,
however, I believe that this will be a question
for the Common Council to take up. Essentially,
what is necessary, is that some of the findings
that you have to make to declare an area a
redevelopment area for your purposes are inap-
pli able in the statutatory format for the tax
abatement.
-11-
South Bend Redevelopment Commission
Regular Me ting - October 5, 1979
6. NEW BUZINESS
h. cohtinued...
Mr. Szarwark (continues).:. For example, you
have to obtain appraisals of a property that may
be purchased. Under this situation, this is
obviously irrelevant, because we aren't going to
purchase property that is to be tax abated. What
is essentially necessary is a finding that this is
a "blighted °area, and I believe we can present
en ugh evidence to the Common Council to satisfy
it, and be able to make all the factual findings.
Mr. Nimtz: Do any other members of the Commission
have any questions they may wish to ask?
Ms. Auburn: The only question I had is one
yoj followed up on. I didn't know if it was
appropriate for the Redevelopment Commission to
act in an official capacity in land that we have
no jurisdiction over yet. I would like to hear
the staff's opinion.
Mr. Ellison: I think the Redevelopment Commission
sh uld take a position on any tax abatement request
that is made.
Ms. Auburn: I guess I don't have clear in my own
mind what criteria we need to look at for tax abatement.
I know in the "hole" project there is tremendous
employment impact.
Mr. Ellison: The statute assumes that in exchange for
an abatement which is an incentive to cause private
sector investment, the public receives employment and
related benefits.
Ms. Auburn: I understand that, but I believe that this
project can go through without the abatement.
Mr. Szarwark: It might, then again, it might not.
Essentially what you are talking about is that the
abatement is something that the developers have looked
into and that they intended to get. They assumed that
it would be granted. If the tax abatement is not granted,
it is going to increase the risks and it is going to
increase the difficulties of the project working financially.
Certainly, this is an incentive for them to come in and build.
If a feeling develops that the City is responsible for granting
this benefit, you will see other developers coming and giving
South Bend perhaps `a second or third look.
-12-
South Bend Redevelopment Commission
Regular Meting - October 5, 1979
6. NEW BIAS I
h. cohtinued...
Ms. Auburn: What is the ten year tax abatement
worth monetarily for the people who are going
to develop the project?
Mr. Szarwark: I presume it has been costed out
but I don't have the figures with me.
Mr. Ellison: Ms. Auburn, I don't believe there
is any question that an abatement is probably necessary
in the large part to cause development to happen. The
problem we have.as a community, and are going to continue
to have, is that we are offering many incentives often
used in combination, and I don't believe we always
know what their total impact will be. Tax abatement
is an incentive that is paid for locally by local
taxpayers. To that extent, abatement is some -
think that we will have to control to a greater
degree. In order to do that, we will need to have
a smoother process that allows for more lead
ti e. In response, I have drafted an ordinance
to try to establish a procedure in the abate-
ment process that provides more lead time
for evaluation of abatement requests. I say
this not to suggest that a tax abatement not
be given in this particular project, because
I feel the Council should give the abatement
de ignation. But, as we continue down the
ro d over the next several months and years,
I Jo think we need to be sure we evaluate the
im act of an abatement as well as public
ex enditures for amenties such as the East
Ra a that would further enhance that
pa ticular property. In other words, we
ne d to know the cost benefit of all the
pu lic incentives and improvements and to
th t extent, we need a longer time frame process
fo evaluation. Everybody recognizes the
gr wing unemployment in the country and that
em loyment creation from private sector invest -
me is is a necessary stimulant, whether you are
in downtown South Bend, Indiana, or in Goshen,
In Tana. It is absolutely essential. I don't
think that this community will ever shut off
ab tement, or do something else that would act as
a Jeterrent to the private sector, but we do have
a ublic responsibility to understand the effect
of the process.
-13-
South Benq Redevelopment Commission
Regular M eting - October 5, 1979
6. NEW BUSINESS
h. continued......
Ms. Auburn: I think that I would appreciate
something like that. I certainly don't want
you to take my remarks as being against tax
abatement. I do feel some responsibility for
making a decision that is going to have a ten
y ar impact on taxes, so I think formalized
p ocedures might help.
Mr. Szarwark: Part of the problem is that
the City Council really has not developed a very
definite structure for considering tax abatement
requests. For example, it is my understanding that
some cities have specifically established a process
and have had the duty of recommendation to establish
its own procedures by which that investigation and
recommendation would be made. It is a little new,
and that is why the City has not gone in that
direction. I think that the least expensive
think to the entire City and to the entire
community is to encourage private funds to go in
there now; do something.with the property,
beautify it and also create jobs. That is
why we are asking you to recommend to the City
th t this abatement be granted.
Mr. Butler: Mr. Szarwark, does the formula for
tax abatement result in basically one half of
the tax liability over the ten year period?
Payment of one half of the liability?
Mr. Szarwark: It is a little more complicated
th n that but I would say it is probably around
50.
Mr. Butler: Secondly, with respect to timing,
by what time does the abatement resolution have
to be adopted in order for a developer to take
advantage by application? By what time must
the resolution itself be adopted inorder for you
to take advantage of the abatement incentive?
Mr. Szarwark: That is somewhat nebulous in the
statute, but it appears that you have to get the
abatement before you begin the improvement of the
pr perty. I am obviously going to try to obtain
so a more information on it to make sure that is
t6 e.
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South Bend Redevelopment Commission
Regular Me ting - October 5, 1979
6. NEW BUSINESS
h. cohtinued...
Mr. Butler: What you are saying then, is that you
fe 1 it is best to play safe and a reasonable
interpretation would be action or resolution prior
to commencing improvements.
Mrs Szarwark: That is correct sir.
Ms Auburn made a motion that the Redevelopment
Commission direct the Executive Director to
communicate with the Common Council for their
su port for tax abatement for that area of the
East Bank being developed by Anchor Properties II,
se onded by Mr. Donaldson, and the motion was
un nimously carried.
7. PROGRESS RE
Mr. Eltison: Mr. Butler has some progress reports on
Centur. Mall.
Mr. Bu ler: We have closed with Mr. Frederickson,
on Par el #9 -20 (Berg Jewelers, and Hawley's Book
Store) We have closed on Parcels #9 -28 and
#9 -29 Business Systems) owned by Julius Tucker and
a trus at the First Bank & Trust Company
respec ively. On Parcel #8 -9 on the East side of
Michig if n Street (Newman's) the court appointed
apprai ers have returned their appraisals to the
court nd we are about to deliver the check to the
Clerk the Court in exchange for the clerk's deed.
We wit then have title and possession of that
property within the week. On Parcel #9 -22 (the
Raitt Corporation) the court appointed appraisers
returned their appraisals and this morning made
payment into the court for the Clerk's deed.
On par el #8 -12, (the South two thirds of Osco
Drug S ore), was in condemnation but it has
been s ttled, and we are in the process of
drawinj the check. The closing should occur in
the ne t two weeks. On Boul Jeff we have already
taken itle; I reported that at our last commission
meeting. That leaves only Parcel #8 -10, which is
the property between Osco's and Newmans, (the Old
Zonder an Book Store). We have filed condemnation
on that property and the court appointed appraisers
are in the process of appraising the property. We
should have their appraisals within the next two or three
weeks.
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PROGRESS CONTINUES
IN CENTURY MALL
(ACQUIRING PROPERTY)
South Benj Redevelopment Commission
Regular Meting - October 5, 1979
7. PROGRESS REPORT
Mr. Ellison: I do want to acknowledge that we
have added two more staff members. We advertised
for an acquisition specialist and have hired
Ms. Ann Bathon. We have also hired Mr. Bill Fox,
who is our relocation specialist. This staff
expansion is in anticipation of additional
activities which we will have to undertake early
next year with regards to Monroe Sample and
the East Bank rpojects.
Mr. Ni tz: We welcome you to the staff and hope
you will enjoy working with us.
8. NEXT COMMISSION MEETIN
Mr. Ni tz: We will have a special meeting
at 10: 0 a.m. on October 10, 1979.
It was noted that discussions would be held
concerning the time of the regular meeting
scheduled for October 19, 1979, because of
ceremony activities being held in relation to
the First Bank Center groundbreaking.
It was suggested that Mr. Nimtz or Mr. Ellison
would discuss the ceremony activities with
Mr. Christopher Murphy of the First Bank and
then decide the correct time of the regular
Redevelopment Commission meeting for
Octobe 19, 1979.
9. ADJOURNMENT
There ei,ng no further business to come before
the Commission, Mr. Donaldson made a motion
that tie meeting be adjourned, seconded by
Ms. Au urn, and the motion was unanimously
carrie . The meeting was adjourned at 11:07 a.m.
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INTRODUCTION OF
NEW STAFF MEMBERS
OF REDEVELOPMENT
DEPARTMENT
SPECIAL MEETING
BEING HELD ON
OCTOBER 10, 1979
DISCUSSIONS CONCERNING
TIME OF REGULAR
MEETING OF
OCTOBER 19, 1979
ADJOURNMENT
South Benj Redevelopment Commission
Regular M eting - October 5, 1979
nt
(��; UL ��
Carl Ellison, Executive Director
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