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HomeMy WebLinkAboutRM 11-02-79November 2, 1979 10:00 A.M. Presiding 0 ficer: 1. ROLL CALL SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING F. Jay Nimtz, President 1200 County -City Building 227 West Jefferson Boulevard South Bend, Indiana 46601 Members Present: Mr. F. Jay Nimtz, President Mr. Lloyd E. Robinson, Vice President Mr. A. Peter Donaldson, Secretary Mr. Robert J. Cira, Assistant Secretary Ms. Paula N. Auburn, Member Legal Counsel: Mr. Kevin J. Butler Redevelopment Staff: Mr. Carl Ellison, Director Mrs. Ann Kolata, Deputy Director Mr. Kevin C. Horton, Real Estate Officer Ms. Ann Bathon, Acquisition Specialist Mr. Bill Fox, Relocation Specialist Mrs. Jane A. Zimmerman, Executive Secretary Ms. Denise Fleming, Secretary Community Development Staff: Ms. Shirley F. McCoy, Contract Compliance Officer Mrs. Barbara J. Radican, Performance Standards Monitor Mr. James Harcus, Director, Bureau of Housing News Media: Mr. Mr. Mr. Mr. Ms. Guests: Mr. Mr. Mr. Mr. Ms. Mr. Mr. Dave Anderson, Reporter, WNDU -TV Dick Nemeth, Photographer, WNDU -TV Larry Ford, Reporter, WSJV -TV Bill Hentsch, Photographer, WSJV -TV Jeanne Derbeck, Reporter, South Bend Tribune John V. Lindstaedt John Kagel Ernest J. Szarwark John Stamper Debbie Goldstein T. Brooks Brademas Ted Wasielewski, President, Historic Preservation Commission -1- South Bend Redevelopment Commission Regular Me ting - November 2, 1979 2. APPROVAL OF MINUTES On motion by Mr. Donaldson, seconded by Ms. Auburn, and unanimously carried, the Minutes of the Special Meeting of Oct ber, 10, 1979, were approved. On motion by Mr. Robinson, seconded by Mr. Cira, and unanimously carried, the Minutes of the Emergency Speciall Meeting of October 17, 1979, were approved. On motion by Ms. Auburn, seconded by Mr. Donaldson, and un nimously carried, the Minutes of the Regular Meetin_ of October 19, 1979, were approved. 3. APPROVAL OF CLAIMS On motion by Mr. Cira, seconded by Mr. Robinson, and unanimously carried, the claims -- totalling $135,0 9.84 were allowed and ordered to be paid. The authorized claims are: REDEVEuOPMENT REVOLVING FU Payroll 10 -06 -79 to 10 -19 -79 Business Systems, Inc. Carl Ellison Indiana Bell Telephone Company Makiel ki Art Shop St. Joseph Bank Travel Agency Superi tendent of Documents Coffee Time Service Riviera Hotel TOTAL ,P.E.A.IIND. R -66 South Bend Drafting Supply, Inc. The South Bend Water Works Jordan's Mishawaka Transfer, Inc. Carl W idler, Attorney -at -Law Abrahan Bros. and b/a Newman's Dept. Store Abraha Bros. and b/a Newman's Dept. Store Michia a Title Corporation -2- $ 5,865.12 77.31 67.52 409.06 15.45 52.00 7.50 26.65 50.00 $ 6,570.61 $ 28.38 8.25 217.03 13.00 10,684.64 18,982.00 1,150.00 TOTAL $ 31,083.30 MINUTES OF THE SPECIAL MEETING OF OCTOBER 10, 1979 APPROVED MINUTES OF THE EMERGENCY SPECIAL MEETING OF OCTOBER 17, 1979 APPROVED MINUTES OF THE REGULAR MEETING OF OCTOBER 19, 1979 APPROVED CLAIMS APPROVED South Bend Redevelopment Commission Regular Me ting - November 2, 1979 2. APPROV L OF CLAIMS (continued) P.E.A.I- MONROE- SAMPLE AREA The A0 tract and Title Corporation $ 300.00 The Ab tract and Title Corporation Michia 1,000.00 The Ab tract and Title Corporation a Title Corporation 300.00 The Ab tract and Title Corporation 87.50 400.00 The Ab tract and Title Corporation St. Joseph 200.00 The Ab tract and Title Corporation M. and Carolyn F. Weaver 400.00 The Ab tract and Title Corporation 400.00 The Ab tract and Title Corporation Linda 400.00 The Abstract Tri -State and Title Corporation eating and Eliza Haynes 200.00 The Abstract rot and L.L. Geans and Sons and Title Corporation 1,510.00 400.00 Lang, Feeney 1,989.36 and Associates, Inc. 980.00 Lang, Feeney and Associates, Inc. 980.00 TOTAL $ 5,960.00 P.E.A. - EAST BANK t Company AREA of St. Joseph County, Inc. $ 250.00 Abstra Abstra t Company of St. Joseph County, Inc. 500.00 TOTAL $ 750.00 312 LOANS St. Joseph County Treasurer $ 353.47 St. Joseph County Treasurer 157.06 St. Joseph County Treasurer 50.03 Big "C" Lumber and Dan Horine 1,118.56 Michia a. Title Corporation 60.00 Michia a Title Corporation 55.00 Michia a Title Corporation 64.00 Michia a Title Corporation 95.50 Michia a Title Corporation 87.50 Peoples First Federal 17,794.03 Heights Finance 253.51 St. Joseph Mortgage Co., Inc. 13,086.44 Fidelity Investment Inc. 4,899.87 Hubert M. and Carolyn F. Weaver 4,765.29 Zimmer's Finance 2,216.98 Great Lakes Heating and Air Conditioning and Linda Mason 1,600.00 Great Lakes Heating and Air Conditioning and Linda Mason 1,428.00 Tri -State Home Improvement and Joyce Sarvari 5,870.00 Owens eating and Eliza Haynes 1,080.00 Tom Na rot and L.L. Geans and Sons 2,197.40 Campbell Electric and Linda Mason 1,510.00 Richard Kazmierczak and Douglas Way 1,989.36 Douglas Way 117.22 -3- South Bend Commission Regular Mee �edevelopment ing - November 2, 1979 3. APPROVA OF CLAIMS 312 LOA S (continued) Jurtin's Construction Co. and John Jamison The Soh Bend Supply Co. & Richard and B ut nda Ferguson Leona McCoy Jack Frost Co., Inc. and Delores Williams Midwest Aluminum and Larry Dwyer Jurtin's Construction and Nellie Clark Frederick Sheets Frank Banicki Owens Heating & Ruth and Gatson Mincy Thomas Nawrot Charles Brown Maintenance Co., Inc. and D rothy Ivy Center Services Co. & T. Brooks Brademas TOTAL GRAND TOTAL 4. COMMUNICATIONS $ 580.00 104.00 24.93 234.50 1,740.00 3,884.00 796.56 240.15 1,050.00 73.57 9,049.00 12,110.00 $ 90,735.93 $ 135,099..84 There vere no communications to present to the Commission. 5. OLD BUSINESS There vas no old business to come before the Commission. 6. NEW BUSINESS NO COMMUNICATIONS PRESENTED NO OLD BUSINESS PRESENTED a. Conimission approval requested for Change Order No. 2, CHANGE ORDER #2 wi h R.A. Stickler Plumbing for a decrease in contract WITH R.A. price of $105.00 for an amended contract total of $785.00, STICKLER PLUMBING at the address of 1226 East Chalfant, as set forth in APPROVED le ter from Mr. James Harcus, Director, Bureau of Housing. Mr. Harcus: While servicing 1226 E. Chalfant Street pl mbing contractor experienced problem replacing kitchen sink. Situation was confirmed by Bureau Inspector who with contractor devised specification changes which permit completion of service. Accordingly, the Commissioners ar requested to approve the attached related.Change Or er No. 2 which will permit service completion at a co t reduction of $105.00. -4 South BendlRedevelopment Commission Regular Me ting - November .2, 1979 6. NEW BUSINESS a. coriti nued ... Mr. Robinson made a motion to approve Change Order #2, with R.A. Stickler Plumbing, for a decrease in contract price of $105.00, at the address of 1226 East Chalfant, se onded by Mr. Donaldson, and the motion was unanimously carried. b. tCoi C. ssion approval R.A. Stickler se fo Bureau at the ad in lettE Housinq. sted for Change Order No. 3 na for a decrease in Contra an amenaea conzracz zozal OT s of 1111 East Sorin Street, as om Mr. James Harcus, Director Mr. Harcus: While with plumbing contractor, Bureau In pector reviewed the condition of the bathrooms at 11'1 E. Sorin Street. The attached Change Order No. 3 re ords specification changes resulting from that re- view which reduce cost by $113.00. The Commissioners ar4 requested to approve this Change Order. Mr. Robinson made a motion to approve Change Order #3, with R.A. Stickler Plumbing, for a decrease in contract price of $113.00, at the address of 1111 East Sorin Street, se onded by Ms. Auburn, and the motion was unanimously carried. Connission approval re uest with Plaia Construction Co. r ce of $97.00, for an amE 4 229.00, at the address c set forth in letter from Mr Bu eau of Housing. ad for Change Order No. 2, , for an increase in contra nded contract total of F 946 East.Sorin Street, as . James Harcus, Director, CHANGE ORDER NO. 3 WITH R.A. STICKLER PLUMBING APPROVED CHANGE ORDER NO. 2 ct WITH PLAIA CON- STRUCTION CO. APPROVED While servicing 946 E. Sorin Street plumbing and general co struction contractors experienced problems in their attempt to properly rehabilitate the kitchen which was extremely small. The attached Change Order No. 2 records thE changes devised by Project Director in conjunction with the participating contractors and approved by the homeowner. It in essence concludes with the addition of on (1) hot air heat run at a contract cost increase of $97.00. Ms Auburn made a motion to approve Change Order #2, with P1aia Construction Co., for an increase in contract price of $97.00, at the address of 1111 East Sorin Street, seconded by-Mr. Donaldson, and the motion was unanimously carried. -5- South Bend Redevelopment Commission Regular Me ting November 2, 1979 6. NEW BUSINESS (continued) d. Tax abatement request relative to certain portions of an area commonly referred to as the southeast corner of Sample and Hiah Street. Mr. Ellison: The staff would appreciate it if the Ch it would recognize Mr. Ernest Szarwark, an attorney wh is here representing the petitioners. Mr � Nimtz: The Chair will recognize Mr. Ernest Sz rwark. Mr. Ernest Szarwark: Ladies and gentlemen, I'd like to put a map before you if I may. As you can see here is Sample St. and this is High St. These are the boun- daries of a property that is presently owned by South Bend Tool and Die. Essentially this is the site of the Old South Bend Toy Works. The building was ap roximately 100 years old, made of stone and wood. Parts of it had been added on since then, but it was a ery old building. It had become dilapidated and there was a great deal of difficulty after the last to ant moved out in obtaining new tenants. As a matter of fact the building went for four years largely vacated. Ladies and gentlemen you are familiar with thE neighborhood, you know that it is a rather rough area of town. The company was having a great deal of trouble with the building, largely vacant as it was, it was suffering from vandalism. Both the police and fire ma shall suggested that something be done with the building because it was a fire hazard. The decision was male two years ago to level the building entirely, and th question remained what was going to be done with th property. A civision of South Bend Tool and Die, South Bend Fa ricating was having its own problems at this point. South Bend Fabricating has a 10,500 square foot facility located around the airport at Brick Road. Essentially, the facility has two problems, number one it is getting old and is no longer really suited for the needs of South Bend Fabricating. For example, as it has expanded it needs more room and it needs overhead cranes. In order to solve both problems it proposes - to build a new facility right here on this piece of property. It also intends to construct a street, which it plans to dedicate to the city. This is the area for which tax abatement is being sought. It seeks to build a plant here with approximately 16,512 sq. ft. This punt will be financed in part th u a $600,000 industrial development bond. It will ad five (5) new employees to the payroll of South Z-1! DISCUSSION OF A TAX ABATEMENT REQUEST RELATIVE TO CERTAIN PORTIONS OF AN AREA COMMONLY REFERRED TO AS THE SOUTHEAST CORNER OF SAMPLE AND HIGH STREET South Bend Commission Regular Mee �edevelopment ing - November 2, 1979 6. NEW BUSINESS d. Mr.ISzarwark continues... BenJ Fabricating, for an $80,000 per year annual pay- roll increase. Also, what we hope to do by improving this area by putting in a modern plant and an access roa , is to make this whole area somewhat more desirable for new industries to come in. The rest of the land wil be available for new industry, hopefully.for new lig t industry construction. There will be access to it. I t ink that this will be really in consonance with what you're doing nearby. This Commission apparently intends to declare a large portion of the adjacent area, a redevelop- ment area, purchase property and eventually end up selling and redeveloping the while area. In order to proceed witi our project we are going to need tax abatement relief. Ess ntially, South Bend Fabricating, is really a company that is coming back from several years of losses and great difficulty. I think it's taking a significant risk here considering the area of town, and considering its history. It would like assistance, in the form of tax abatement, to nake the project more financially viable. In talking witi Mr. Reynolds, President of the company, he assures me that tax abatement is necessary in order to make the project go. Mr. Reynolds had previously been in contact witi Mr. Eckerle, who indicated that this Commission would consider declaring this a special district area sub equent to it's declaration of the adjacent area as a r development area. This is not feasible at this tima because we need to get moving on our building as sooi as possible. We would like to start building before winter comes in, essentially because we would like to get into the building as soon as possible. The present building where they are located is old and has serious heating problems, quite frankly it's difficult to keep the factory open, heated and comfort- able for the employees throughout the winter. So, if we can move out before or sometime during the winter and move into an ultra new building this would be excellent for productivity purposes. Ladies and gentlemen are there any questions you would lit me to answer? Mr. Nimtz: (Referring to the map) You may have lost me someplace, is this Lincoln Way East? Mr. Szarwark: I believe so, here's Sample Street, and he e's High St. 1VJ3 South BendlRedevelopment Commission Regular Me ting -- November 2, 1979 6. NEW BUSINESS d. cotitinued... Mr Nimtz: If this is privileged information, you needn't an wer, but does this affect the parking apparently Ro ky's, or the successor of Rocky's, has on the corner? Mr. Szarwark; To the best of my knowledge this will not of ect it. Mr. Robinson: Why are you seeking tax abatement if the proposed plan you're going to build a road near the traffic circle, why are you asking tax abatement on that if you're going to turn it over to the City it will be automatically taken off the tax roll, I think. Mr Szarwark: Yes sir it will. Essentially for two reasons. Number one, there is a possibility the City won't accept it now I don't anticipate any problem here I believe the City will accept it, but in the meantime, just in case, we d like to make sure there is no problems at all. Se ondly, we don't know how long the process will take be ween the time it's finished and the dedication is accep- te by the City. So if it takes a couple of months, we do 't want to have to pay property taxes for that period on the increased valuation. Mr. Robinson: Next question. If granted tax abatement anc the City did take over the proposed new street, I assume the tax abatement situation that was granted foy this would just stay with the existing facility? Is that what you're really asking? Mr. Szarwark: Yes sir, right. Mr. Ellison: Is it your opinion that a tax abatement car be given on this particular land? Mr. Szarwark: Yes, Mr. Ellison, it is basic improvements and that is an improvement to the property. Mr. Ellison: Who owns the adjoining property? Is the abatement sought just for this area or for the whole thing? Mr. Szarwark: No sir. Let me make that clear. It is this area right here and the road way. This will not be covered by it. Mr. Ni.mtz: It has always been my understanding that South Ben Tool and Die owns the whole thing. I may be mistaken but that's always been my understanding. Mr. Butler do you have any questions or comments? me South Bend Commission Regular Mee �edevelopment ing - November 2, 1979 6. NEW BUSIINESS d. continued... Mr.l Robinson: If they own the whole thing can they get to abatement on just part of the parcel? Mr.l Nimtz: Yes. Mr. Ellison: What are the intentions relative to the balance of the parcel? Mr. Szarwark: The plans are to sell it to other companies interested in developing light industry on the spot. We ho re this will be a mini- industrial park, Maybe we can get two or three additional companies to come in and build th it factories there. It has potential for developing into a rather nice project. I think it will be in con - so ance with what you are generally doing with the area. It's a risk because it is a rather tough area of town and we haven't been able to sell any of the parcels up to this time. We hope that with the general redevelopment of this area and growing interest of developing industry in towns so the people don't have to use a lot of gas to get to and from their place of employment, there Will re renewed interest in this area. Mr. Robinson: How long a period of time is this tax abatement request for? Mr. Szarwark: According to statute, the tax abatement is for a ten year period. It will not affect the tax dUE to the physical land itself, but the increase in to due to improvements on the property will be abated 10C% for the first year, 95% for the second year, 80% foy the third year and down to 5% for the tenth year. Mr. Cira: What's the potential savings in ten years on tax abatement for that project? Mr. Szarwark: I don't know, it is difficult to tell because the tax abatement dollar amount can be depen- de t upon two things: (1) the eventual valuation of th building; and (2) the tax rate. I don't believe th tax rate has been set for the coming year. Ms. cui i n! Auburn: Refresh my memory, where are they located rently? Are they out by the airport? Are they ide the City Limit? Q South Bend edevelopment Commission Regular Mee ing - November 2, 1979 6. NEW BUSINESS d. continued... Mr. Szarwark: Out by the airport, around Brick Road. I t ink it's inside the city limits but I'm not positive. Mr. Nimtz: I don't think it.is Paula, that'd be my gue s. I think it is part of what they are trying to ann x right now. Mr.lDonaldson: I know it isn't. Mr. Nimtz: Let me review the situation. This is similar to what we did previously. All we're doing is recommend- ing to the City Council that they pass the tax abatement resolution? Mr. Butler: We are involved in the process only because there is an informal understanding that these matters should come to the Commission first before the Council. The law provides that the Council makes the decision; our action is without legal force. Mr. Ellison: Is the site serviced by rail? Mr. Szarwark: There is a railroad line at the northern property line. Mr. Nimtz: Mr. Butler, if we pass a resolution, what would be the proper resolution? Mr. Butler: Have we acted in each instance by resolution? Mr. Ellison: Actually, we've acted by resolution in those situations where we have already determined the area to be a redevelopment one and by motion in those situations where we have not. Mr.l Nimtz: Do I hear a motion? Mr. Cira made a motion that the Redevelopment Commission recommend to the Common Council that the area commonly referred to as the southeast corner of Sample and High Street (South Bend Tool and Die) be declared a blighted area and that it be granted tax abatement under the statute and that the Director of the Commission be authorized to communicate such recommendation to the Common Council, seconded by Mr. Robinson, and the motion was unanimously carried. -10- South Bend Redevelopment Commission Regular Me Ling — November 2, 1979 6. NEW BUSINESS e. Mr. Ellison: Mr. Chairman, we need to add an item 6 (e). Mr. Butler advises me that we have the copies of the lease with FBT Bancorp, Inc. relative to that potion of the "hole" that they are leasing that the Commission now needs to execute. I don't know that we need to do anything more formal except to indicate that at this juncture. Is that ok, Mr. Butler? Mr. Butler: Yes. We have already authorized execution. The changes that I discussed with FBT, were simply fo mal changes, so there is no need for further action by the Commission. Mr. Nimtz: The only thing we need to put in the minutes is the lease has been resolved and ready for execution. 7. PROGRESS REPORTS a. Thel Odd Fellows Buildin Mr. Ellison: The staff has for some time been review- ing the proposals for the rehabilitation of the Odd Fellows Building along with the proposals for demoli- tion and wishes to report to the Commission that it believes it will be in a position to make a firm recommendation to the Commission either at a Special Meeting on November 8, 1979 or at the next Commission Meeting on November 16, 1979. We have had communica- tion, as instructed by the Commission, with Nick Jan otta and Associates. Jannotta and Associates may havo their report done by the 8th but if not they wil have it done by the 13th. That is why we made a var'ance with respect to the meeting dates. The staff has made its own conclusion. We are not sure to what extent Jannotta's conclusion may parallel ours or be different. But in any case we will obviously take that into account so as to give the Commission full information on the issue along witi a firm recommendation that should allow it to dis ose of this matter by that date. We think we hav been fairly thorough to this point, and will con inue to be. Mr.�Nimtz: Are there any questions by the press or pub M? Mr. des Dave Anderson: Are you at liberty to say or :vibe the nature of the staff decision at this time? -11- LEASE WITH FBT BANCORP, INC READY FOR EXECUTION DISCUSSION REGARDING CONSULTATION WITH NICK JANNOTTA AND ASSOCIATES RELATIVE TO THE ODD FELLOWS BUILDING South Bend Redevelopment Commission Regular lie ting - November 2, 1979 7. P a. c REPORTS inued... Mr.l Nimtz: NO! Mr Dave Anderson: Isn't there a deadline on the de lition' bids? Mr. Ellison: The demolition bids have a 30 -day time clock, however, we are aware that the contractors involved are willing to allow the Commission additional time to consider them and their prices will still be go d. We're in the process of confirming that in writing. We do not believe the 30 -day clock will have a articular affect. Mr. Nimtz: When it looked like we were running into a time lag on this decision, I talked to the other members of the Commission and I asked Carl to try to get an extension on demolition bids, anywhere from 10 to 30 days. Our experience in the past is that most of th se people will agree to an extension. Anything fu ther? Mr. Larry Ford: Is Jannotta aware of the staff re ommendation at this point? Mr. Ellison: No. He may know where we are leaning, bu his report is designed to be independent of our thinking and Nick only operates that way. Mr. Nimtz: To refresh your recollection, Nick was here at least two days when we had the hearing in the Board of Public works and Safety hearing room, and he made his verbal report concerning the Monroe- Sample Area and the Mall Area, this included the Odd Fellows Building so he's well acquainted with the Historical si nation and the entire concept of the building. No hing is new to him. Mr. Larry Ford: What was the direction given to hi in making the recommendation? Mr. of Ellison: Essentially the way I put it was that the ission desired his advice relative to (1) the omic quality of the proposals with the focus on numbers given in the proposals. He was also given indication that he could contact, independently s, any of the proposal submitters in order.to clarify -12- South BendlRedevelopment Commission Regular Me ting - November 2, 1979 7. PROGRESS REPORTS. a. Mr.l Ellison continues... details and numbers. The secondary charge was to look at the Odd Fellows Building in its relationship to the existing office market and also take into account the relationship of it as an economic entity and a physical structure in relationship to the Century Mall development, It seems to me that that was a comprehensive enough ch rge to assure that he took into account essential fa tors. Ms. Jeanne Derbeck: The Mayor said something about thE plans for the bus terminal. Mr. Nimtz: We had a meeting, and the Transpo people had a meeting, with the Mayor and with Gruen and Associates. At this meeting we saw the proposed plan for the new Federal Building and where the Transpo facility would be. We did not have a joint meeting, but it is my understanding they (The Transpo Group) re lly had no objection to the proposal as to where th y would be located. Mr. Ellison: That's correct. Essentially, the Transpo terminal would be situated along property that is currently vacant, that is, there is no impediment that I am aware of. Part of the reason I answered the qu stion that way Jeanne, is that if you're looking foo a relationship between the Odd Fellows Building and the Transpo terminal, there is none. Ms. Derbeck: It was described by March Kovas of the Tribune, between Jefferson and Washington three open lanes, and I just wondered how, between Jefferson and Washington. Mr. Nimtz: Well, it would be just east of the rear enc of the Odd Fellows Building to the service drive. Th re'd be three lanes for buses, two going south anc one going north. Ms. Derbeck: Would the lanes extend from Washington to Jefferson? Mr.1 Ellison: Yes, the length of the block. Ms. Derbeck: The Transpo terminal will not run on Main? It will be east of the Odd Fellows Building Ar a and probably the GSA Building. I might add it's co fusing, to me that seems to cut off that whole ar a from the mall. -13- South Bend edevelopment Commission Regular Mee ing - November 2, 1979 7. PROGRES$ REPORTS a. continued... Mr. Ellison: When Gruen finishes their work and you see the plans you will notice that there is great care taken to assure that pedestrian access functions throughout the project so that there won't be a conflict between buses run ing through there and people needing to get into the mal . Ms. Derbeck: I assume that what is planned is for some kind of mall on Main between the GSA Building and the Odd Fellows Building. Then there would be a second floor above the bus pass that would be covered by another floor, right? Mr. Ellison: No. There is a walk -in connection to the sec nd floor, but the connection was actually to the mall. Ms. the Mr. Mr. Ms. asst ma 1 ' Derbeck: Is part of the mall going to extend above buses? Nimtz: No. Robinson: There will be canopies over the top. Derbeck: If there is a mall entrance on Main, as I ime there will be, how are the people that enter the on Main going to get over to the buses? Mr. Ellison: They will be able to walk across. It's kin of hard to describe it unless you can see the plans. Mr. Nimtz: If you close in the bus area you run into the EPA (Environmental Protection Agency) and the cost get to be terrific when you begin to conform to their rul s, regulations and requirements. As a member of the Air Pollution Control Board of the State, I am som what familiar with that. So the present plan right now is that it would not be an enclosed Transpo terminal, the a would be canopies, but not an enclosure. Ms. Derbeck: I still want to know how people will get fro the Main Street entrance, how will they get pass tho a bus lanes? Mr. wil ful Dec Ellison: In 30 days, I think all your questions I be answered. It's expected that Gruen will make a I presentation at either a Special Meeting of the nission or the Regular Meeting, the first Friday in ?mbe r . -14- South Ben 0edevelopment Commission Regular Me ting - November 2, 1979 7. PROGREIS REPORTS a. continued... Mr. Ted Wasielewski: Carl's statement about Nick Jannotta's charter confuses me on several points. He said that he was going to evaluate the bids as presented, evaluate the economic viability and look into the future of the office space in South Bend. I thought that the Rouse Study took care of two of those points, one establishing the economic viability of the building, two determining whether or not that building could fit into the mall either as office space or otherwise. So aren't we going back and asking another opinion on something we paid a substantial amount of money for the first time? Also, I thought originally that Mr. Jannotta was just going to look at the bid proposals as they were presented? Mr. Ellison: I can answer that. To clarify what I meant to communicate was that, Jannotta's charter was to look at the Odd Fellows Building in its relationship to existing and planned office space. So as to consider, for instance, if that building is rehabilitated and if in his judgment, it's really Class B office space, to what extent does it compete with existing Class B office space. To what extent might there be some negative impact associated with that. If it's Class A space, based on a time the proposes indicate it may come on line, to what extend will it compete with other Class A space we know is planned and under construction. (The Holliday Corporation is building on Block Six, First Bank Building in the "hole" and so on). All of this is necessary to help the Commission have some assurance that if the building is infact rehabed to offices it would work. That seems to me a reasonable charge to Jannotta, it may in some respect represent a duplication of Rouse, but although Rouse did a market study it took into account a much broader view. Jannotta is actually focusing on the building and looking at the relationship that surrounds it in a much more narrow point of view. And, even if it represents when it's all done a second opinion to me, it still is worth it to the Commission to have that information. Mr. Nimtz: Also, as part of his thinking or study we have had two instances in the downtown area with the LaSalle Hotel and the old Hoffman Hotel where people have started to work on those particular buildings. There were great plans and great hopes and expectations and, after a year or so of work on them, it turned out that they either didn't have the financing or their plans weren't feasible.and so on. This is one of the things the Commission is concerned about with the Odd Fellows Building. -15- South Bend Commission Regular Mee�edevelopment ing - November 2, 1979 7. PROGRESS REPORTS The Chalir recognizes Mr. T. Brooks Brademas: Mr. Brademas: Mr. President, I'm delighted to see you back and looking so well. I'd like to speak very briefly to several of the points that have been discussed this morning, relative to the Odd Fellows Building. One, financing. I will leave with you for your perusal, a report on the Stevens Company. That may be a firm not familiar to the Commission but it has now become one of the half dozen largest firms of its kind in the country, specializing in the industrial revenue type bond. So from the standpoint of the viability of the financing I can tell you we have a firm commitment. Speaking directly to thE Commission President's concern as to whether or not you get started and then you have the wherewithal to carry forward, I think that our record certainly speaks for itself in what we have done here in the community. As you know, on these EDC Bonds you have to sign on them personally, and I can tell you when we do that why we're going to be around to make sure that the job gets do e. A couple of points are very well taken and I admire your Executive Director's footwork in terms of responding to them, but I come back again to say that if Mr. Jannotta's report would suggest anything other than what the very thought out and excellent report of the Rouse people suggested, I would think that you would have to look into this. It would be inconceivable to me, from onE who has some knowledge of the local situation, to think that Mr. Jannotta would come up with anything that wo ld be very much different than what the Rouse people said. There is and will be a very strong demand for thE type of office space that could be provided by the Odc Fellows Building. There are a couple of housekeeping ki d of things. We have looked over that building in great detail, it is very structurally sound and the roof is essentially sound, but in the southwest corner there .is a leak in the roof, and also along the north parapet wall there is a leak. That may not mean a great deal at this point in time, but could if we get a lot of rain an snow packing up there. It would not take very much to make some temporary repairs and I would just hope th t you take that into consideration as well as some of the windows that are open where you might get some bl wing snow and rain. Because the building is basically in structurally sound condition now, we wouldn't want to ha e any further damage. -16- DISCUSSION BY MR. T. BROOKS BRADEMAS South Bend Redevelopment Commission Regular Me ting - November 2, 1979 7. PROGRESS REPORTS MrJ Brademas continues... With regards to the bus terminal, it seems that we might have been clairvoyant in our proposal, which at least from what little we have heard here today and from March's report in the paper, sounds about like what we had thought it might be; some open canopies that would be tied into the back of the Odd Fellows Building and then a pedestrian wa kway thru into the mall itself. I'm just wondering whether or not, as an interested citizen and developer, we might have access to those preliminary drawings to verify or possibly even try to modify our plans accordingly. Mr. Ellison: My guess is no. Because the drawings are in eed preliminary, and the thrust of what Gruen is to do is to sort of do a schematic and tie down the mall in relationship, and in that process Gruen has talked to a great number of people. Gruen could elect to talk to the pr posers for this particular building if they so elected, we have not instructed them to do that. But my sense is that, until we accept whatever Gruen is now doing, it pr bably is not suitable for the public release as it will to d to confuse what the City will openly intend to do from a levelopment standpoint. Mr � Nimtz: Actually, those drawings are not in our po session. Mr.l Brademas: That's all I had Mr. President. Mr Nimtz: Thank you, glad to have you here. An thing further? Ms. Derbeck: I have a question about the tax abatement thing, two names were mentioned, South Bend Tool and Di and South Bend Fabricating. Mr Szarwark: South Bend Fabricating is a division of So th Bend Tool and Die. Ms. Derbeck: At first, I thought you were talking about building a new building on that property. (High and Sample) Bu you are not. Mr.1 Szarwark: Yes they are building a new building. Ms Derbeck: Why didn't you ask for tax abatement for th t, you were only talking about the street. -17- South Bend Redevelopment Commission Regular Me ting - November 2, 1979 7. PROGRESS REPORTS a. continued... Mr. Szarwark: No. There is a parcel of real estate there, a large parcel. We are asking for tax abatement for a po tion of that on which we are going to build a building and the street that will lead up to the building. Ms. Derbeck: So you're asking for tax abatement for that as a total, but it's possible that the street may be given to the City? Are they also building a new building for South Bend Fabricating? Mr, Szarwark: Yes. We intend to eventually give the street to the City, but we'll have to go through that process. Yes, they are building the new building for South Bend Fabricating. 8. NEXT COMMISSION MEETING The ne t regularly scheduled South Bend Redevelopment Commission meeting will be held on November 16, 1979, at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Commission, Mr. Robinson made a motion that the meeting be adjourned, seconded by Mr. Cira, and the motion was unanimously carried. The meeting was adjourned at 10:48 a.m. z, Pres hdent NEXT COMMISSION MEETING ADJOURNMENT elo efft���- Carl Ellison, Executive Director