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Home My WebLink AboutRM 05-02-80May 2, 1980 10:00 A.M. Presiding Officer 1. ROLI CALL SOt,,TIH BEND REDEVELOPMENT COMMISSION REGULAR MEETING Mr. F. Jay Nimtz, President 1200 County -City Bldg. 227 W. Jefferson Blvd. South Bend, IN. 46601 ers 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 Counsel: Mr. Kevin J. Butler lopment Staff: Mr. Carl Ellison, Executive Director Mrs. Ann Kolata, Deputy Director Mr. Kevin Horton, Real Estate Officer Ms. Ann Bathon, Acquisition Specialist Mr. Bill Fox, Relocation Specialist Mr. Paul Falduto, Employment Targeting Assistant Mrs. Jane Zimmerman, Executive Secretary Mrs. Hedy Robinson, Secretary nity Development Staff: Newt Media: Mrs. Marzy Bauer, Director Mrs. Kathryn Baumgartner, Director, Bureau of Housing Mr. Thane Wilson, Project Director, Bureau of Housing Mr. Dave Darin, Bureau of Housing Mr. Dave Cheeney, Planner, Community Development Ms. Jeanne Derbeck, Reporter, South Bend Tribune Mr. Dave Anderson, Reporter, WNDU Mr. Les Howard, Photographer, WNDU Mr. Larry Ford, Reporter, WSJV Mr. Bill Hentsch, Photographer, WSJV Gue ts: Mr. Richard Hunt Ms. Glenda Rae Hernandez, President, S.E. PAC Mr. Johan Cooney 2. APP OVAL OF MINUTES On motion by Ms. Auburn, seconded by MINUTES OF THE REGULAR Mr. Donaldson, and unanimously MEETING OF APRIL 2S, 1980 carried, the Minutes of the Regular WERE APPROVED Mee ing of Friday, April 2S, 1980 were South Bond Redevelopment Commission Regular Meeting - May 2, 1980 3. APPROVAL OF CLAIMS On motion by Mr. Robinson, seconded by Mr. Donaldson and unanimously carried, the claims totalling $39,660.65 were allowed and ordered to be paid. The authorized claims are: REDEVELOPMENT REVOLVING FUND Pa o". 4 -05 -80 to 4 -18 -80 nne Air Freight Pos master TOTAL DISTRICT CAPITAL OF 1972 $ 5,461.35 25.90 15.00 $ 5,502.25 ,n Associates, Inc. $ 181.39 TOTAL $ 181.39 P.EJA. IND. R -66 Allied Construction Company $ 108.12 Co unity Development 4,589.75 R.E McCloskey & Associates 662.50 Parker, Brunner $ Hamilton, Attorneys at Law 600.00 De is J. Dillman, S.R.A. 475,00 TOTAL $ 6,435,37 312 LOANS Thomas Nawrot $ 1,038.04 Harold Mullin, Jr. & L.L. Geans & Sons 1,025.00 Tre na A. Moore & Kissell Company 53,000.00 Tri-State Home Improvement & Lola Bolinger 6,820.00 Kowalski Siding & Rudy Dunfee 6,577.00 Dea Andrews $ L.L. Geans 595.00 Pla a Construction $ Leona Fleming 4,265.60 Kev n Ervin Jurtin's Construction 2;221. ;00 TOTAL $27,541.64 GRAND TOTAL $39;660,65 4. C0 ICATIONS were no communications presented to the ission. -2- CLAIMS APPROVED NO COMJNICATIONS PRESENTED South B nd Redevelopment Commission Regular Meeting - May 2, 1980 5. OLDI BUSINESS Thee was no old business to present to the Commission. 6. NEWT BUSINESS a. Commission aU rova.l requested I for 1980 Revised Guidelines or't e Project Rehabilitation Grant and N6h -Pro it Group Grant Guidelines, as per letter from 'Ws. Kat iyn Baum artA6r, Director; Bureau o Housing. Mrs. Baumgartner: Attached to your packets are copies of the revised guidelines and I would like to high- light for you some of the revisions. For the most part none of the guidelines have been changed since 1975, so we felt it was about time for some current changes; not only because the economy has changed but also the whole rehabil- itation point of view in terms of code. Concerning rehabilitation we have five changes. Primarily we would like to change the maximum grant from $9,000 to $11,000 because the inflation factor has affected everyone, and also because of the interior and exterior of the homes we are able to invest the $9,000 previously on the interior and while that may help the family, it makes very little impact on the neighborhood. Since we really have a dual responsi- bility we think the increase will allow us to do that. If in fact the amount exceeds the $11,000 we will not deal with that structure unless we combine it with a loan. Mr. Nimtz: Thank you Mrs. Baumgartner. Has the staff had a chance to study these guidelines? Mr. Ellison: Yes. Mr. Nimtz: Do you have any recommendations? Mr. Ellison: I believe I made a few at a meeting at one time but I believe those were incorporated. -3- NO OLD BUSINESS WAS PRESENTED South Bond Redevelopment Commission Regular Meeting May 2, 1980 6. NEWIBUSINESS a. (continued... Mrs. Baumgartner: Concerning the grant there are a few more changes. We have increased the income guide- lines which was previously; 1) one person - $5,000 to $5,500 in increments, and we are now increasing that to $6,000. Again, because the cost of living and social security benefits have increased it is difficult for people to obtain loans. Also we are requesting that each applicant be required to present a Cer tificate of Environmental Acceptability certifying that the exterior property is devoid of abondoned vehicles, litter, trash, weeds and unkempt grass, etc. The certificate becomes part of the documentation necessary for the grant application to be processed Our last provision is an Imposition of Lien. Following the completion of the rehabilitation work on a specific property, a lien in the amount of the cost of rehabilitation will be placed on that property. Forgiveness of the lien should be granted on a percentage basis annually (20o), as long as the conditions of the grant are met. The conditions are; 1) that the property remains in the original ownership; 2) that the property is maintained, at least to the extent that the repairs made under the grant are still in evidence. Mr. Nimtz: Mrs. Baumgartner, who has to approve these guidelines besides the Redevelopment Commission? Mrs. Bauer: You are the only ones. We have already met with the Common Council and Hunan Resources earlier this week and they had no objection. Mrs. Baumgartner: The non - profit guidelines have four major changes. Bonafide non- profit groups with an interest in improving neighbor - hood housing conditions are encouraged to apply for grants under the Community Development Housing Rehabilitation Assistance Plan. M South B nd Redevelopment Commission Regular Meeting - May 2, 1980 6. NEW IBUSINESS a. continued.... Mrs. Baumgartner continues... They may apply for assistance in rehabilitating both single family and congregate housing (group homes) units. All non - profit groups must provide a copy of their charter under the State of Indiana identifying them as a non- profit group. Non- profit groups applying for assistance in rehabilitating a building to be used as a group home rmust demonstrate; 1) that they have a proven record of performance in working for their group's goals; 2) that they have experience in operating a group home facility; 3) that they have a reliable source of funding for continuing administrative and program operation. The grant amount has been increased to $10,000. Mr. Nimtz: What is the recommendation of the Commission? I am willing to approve this on the basis of the staff's recommendation, but Mr. Robinson and Ms. Auburn may have an academic interest in this and may want to postpone it until you have had a chance to study it. Mr. Robinson: I feel you should listen to sound advice. Mr. Robinson made a motion to approve the 1980 Revised Project Rehabilitation Grant and Non - Profit Group Grant Guidelines for the Bureau of Housing, seconded by Ms. Auburn, and the motion was unanimously carried. b. Commission ap Revised Guide Rebate and Ur as ber letter requested for 1980 or the Project est�Programs, rs. Kathryn r, Bureau of Housi -5- 1980 REVISED PROJECT REHABILITATION GRANT AND NON - PROFIT GROUP GRANT GUIDELINES APPROVED FOR THE BUREAU OF HOUSING South B nd Redevelopment Commission Regular Meeting - May 2, 1980 6. NEWIBUSINESS a rs. Baumgartner: Project rebate and omesteading programs are basically the are in a very minor way. One thing we ould like to do is increase the percen- age of rebate from 40% to 500. Before ny property is offered to the public s a homestead it will be carefully nspected and evaluated by the Bureau of ousing Project Inspection Team to etermine if rehabilitation of the property s structurally and financially feasible. he cost of acauisition of the homestead roperty plus the cost of repairs ursuant to the agreement between the omesteader and the Bureau of Housing shall of exceed, after rehabilitation, the fair arket value of the property. Under no ircumstances should the acquisition cost f the property exceed $9,000.00. ursuant to the homesteading agreement he homesteader must; 1) correct all safety nd health violations prior to moving nto the homestead; 2) bring the dwelling p to program standards (including building, lumbing, electrical, and fire code tandards) ; 3) carry adequate fire and iability insurance at all times; 4) allow he Bureau of Housing to make periodic nspections at reasonable times to etermine compliance with the agreement uring the three year occupancy period. he Bureau of Housing will encourage outh Bend lending institutions to rovide conventional home improvement . Nimtz: Has the staff studied these idelines or have any comments? Ellison: Yes, and we think the osed guidelines should be approved. Baumgartner: Cash rebates for home ovements are available to homeowners, hasers under land contract, and ntee landlords residing within those .daries are acceptable. Owner- - pants shall be eligible for cash tes from 20% to 50% of the cost South B nd Redevelopment Commission Regular Meeting -.May 2, 1980 6. NEWIBUSINESS b. Mrs. Baumgartner continues... of completed home.improvements. The amount of rebate varies depending on gross annual family income and family size. 50% rebates shall be made available to those persons satisfying the "extreme hardship" criteria; 40% rebates to those persons living under "hardship" criteria; and 30 -20% to those homeowners who are more financially able to finance home improvements without placing the household budget into the aforementioned hardship categories. Mr. Donaldson made a motion to approve the 1980 Revised Guidelines for the Project Rebate and Urban Homestead Program, through the Bureau of Housing, seconded by Mr. Robinson, and the motion was unanimously carried. c. Commission Xroval requested for IND. R -66 Acquisition arcels #8-11, and #8 -12, lease agreements with Osco Mr. Butler: We have acquired the two properties in which Osco Drugs is located. We acquired the property subject to the existing leases. Under both of those leases Osco had to by April 1, exercise its option to renew the leases beyond July 1, 1980, and they did so. In the meantime we have negotiated with them the amendments to those two leases which provide for a 90 -day termination on our part and a 30 -day termination on their part. Also adjusting the rent effective for the north 1/3 of the property at $166.67 per month and toward the south 2/3 $333.33 per month. I am asking the Commission approve today the amendments to those two leases, and in addition to that, an agreement between the Redevelopment Department and Oscos relative to the fixture (immovable) which at this point they intend to remove from the building. -7 1980 REVISED GUIDELINES FOR THE PROJECT REBATE AND URBAN HOMESTEAD PROGRAMS APPROVED FOR THE BUREAU OF HOUSING South B d Redevelopment Commission Regular Meeting - May 2, 1980 6. NEWIBUSINESS c. Mr. Butler continues... Under our fixture appraisal the immovable fixtures were valued at $31,560.00. They are going to leave those fixtures with the property, as well as the real estate fixtures. In return for payment by the Commission, by the department of that $31,560.00. They may or may not remove from the building the movable fixtures and the movable equipment, that is subject to their termination when they are ready to move. We wanted to simply clarify their rights relative to the fixtures, and this agree - nent does so. Two motions should be made such as one authorizing the approval of the lease agreements, the amendments to the lease agreements, and then a second motion approving the fixture agreement. . Auburn: Were there changes in the atal amount in the new lease? Downward? . Butler: Yes, the changes were fr. Robinson: Do they get about the ame bracket as what we are renting or easing the other stores for? [r. Butler: The tenants who were in the tores or the occupants who were in those tores at the time that we acquired, yes. ome of the new arrangements are at $1.00 imply to get new people or new businesses n the vacant stores. It is a temporary rrangement and they have to expend in ome cases considerable sums of money to mprove those vacant stores so that they an move in for a very short period of time. his store has already improved to their pecifications. They simply continue he occupancy. Mr. Cira: What would be a stable fixture in Osco's Mr. Butler? South Bond Redevelopment Commission Regular Meeting - May 2, 1980 6. NEWIBUSINESS c. (continued... Mr. Butler: Well, actually the original figure of the fixtures was considerably higher, probably in the amount of $80,000 or $90,000 and $31,000 plus depreciation. The display bulkheads (display units generally), checkout counters are also immovable fixtures. Mr. Cira: You can move checkout counters. Mr. Butler: Yes, but these are fixed. They are referred as immovable fixtures because they are fixed to the ,property (to the improvements). The carpeting, built in light, built in prescription drug shelving, drinking fountain and items as such. The movable store fixtures (things that can be moved) the greeting card rack, surveillance cameras, security mirror, etc. Mr. Robinson: On these properties, not particularly about this lease, whenever they get ready to clear the land, is there any type of negotiation for salvage or anything? Mr. Butler: Generally, that has been a factor in the demolition bidder's bids. In a couple of instances the department has made arrangements for sale of some of the fixtures. That was true in the Office Engineers Property. Ms. Auburn: It is my understanding that there is an open end lease with a 30 -day or 90 -day notification on it. Mr. Butler: Well, they have extended it to five years but with the 30 -90 day notice. W. Nimtz: Any questions from the public? M South B nd Redevelopment Commission Regularl Meeting - May Z, 1980 6. NEWI BUSINESS C. continued... Ms. Derbeck: To put it in a nutshell does this mean that Oscos will be doing business in the mall for awhile? Mr. Cira: Five more years for sure. Mr. Nimtz: I would assume that as long as it is profitable to stay there, they are going to stay there. Mr. Butler: Until the property is ready for demolition. What we are simply talking about now is the revisions of the lease terms. Mr. Cira: Mr. Butler, they did sign a five year lease didn't they? Mr. Butler: They have exercised their five year option. . Derbeck: They signed the lease before a acquired the property? Butler: Yes. Their leases have been effect since 1953 and 1961. Nimtz: We took the property subject the lease, and now we have renegotiated lease. Cira made a motion for the approval, and thorization of signatures, for the amend - nts to the lease agreements between Osco ugs, Inc. and the Department of Redevelop - nt, City of South Bend, seconded by . Donaldson and the motion was unanimously rried. . Robinson made a motion to approve the xture agreement between Osco Drugs, Inc. I the Department of Redevelopment, City of uth Bend, seconded by Mr. Cira, and the Lion was unanimously carried. Mr. Elli on: Items 6d, 6e, and 6f are all related, therefor o, I feel they should be read in order and consider d at one time. -10- MOTION PASSED FOR THE APPROVAL OF AMENDMENTS TO LEASE AGREEMENTS WITH OSCO DRUGS, INC. MOTION PASSED FOR THE APPROVAL OF FIXTURE AGREEMENT WITH OSCO DRUGS, INC. South Bi Regular 6. NEW W e. f. nd Redevelopment Commission Meeting - May 2, 1980 BUSINESS (continued) Commission ajpproval requested to rescind Resolution 609, authorizing t e execution of Redevelopment Agreement I for the dis- position of land an t e execution of quit -claim deed(s) f ) for the trans er of title thereto in connection with land to be disposed of in the LaSalle Park Project, Ind. R-57. Parcel # Name Amount 15 -10 thru Ardmore- LaSalle $1,158.0 15 -13 & Church of Christ 17 -23 thru 17 -26 Commission approval requested for Resolution #612 authorizing the execution of Redevelop- ment Agreement for the dis osition of land and the execution of quit- claim deed(s) or the transfer of title thereto in connection with land to be disp2sed of in the LaSalle Park Project, Ind. R-57. Parcel # Name Amount 15 -10 thru Ardmore- LaSalle $576.00 15 -13 Church of Christ Commission a royal requested to rescind Resolution 563, authorizing the execution of Redevelopment Agreement for the F sposition of land and the execution of quit -claim deed(s for the transfer of title thereto in con- nection with land to be disposed of in the LaSalle Park Project, Ind. R -57. Parcel # Name Amount 20 -5, 20 -6, Minority Encourage- $2511 20 -7, 20 -8, 20 -9, ment & Counseling & 20 -10 Services Associ- ation, Inc. Mr. Ellison: The staff, as part of its effort to develop a disposition plan for LaSalle Park, has come to the Commission the last several meetings with a number of resolutions - -some new ones, some rescissions - -which have had to do with -11- )00.00 South B�nd Redevelopment Commission Regular Meeting - May 2, 1980 6. NEW (BUSINESS d,e,l & f -- Mr. Ellison continues... situations in which the department was selling land on a time sales basis. We are asking you today to rescind one resolution. I believe it was passed at the last meeting. The rescission request results from additional negotiations with the parties involved in the Ardmore - LaSalle Church of Christ and the Minority Encouragement & Counseling Services Association, Inc., all of which are one and the same. We believe that this is the last time the Commission will have to consider resolutions regarding any of these parcels as this should make this transaction final. Approval of items 6d, 6e, and 6f will finally clear up our most difficult time sales arrangement. Ms. Auburn: Are item 6e and 6f tied in together at all? Are we just processing them at the same time? Mr. Ellison: No. In effect we are going to receive full control of all the parcels listed in 6d and all the parcels listed in 6f. Then, we are going to turn around and resale part of the parcels in 6d (15 -10 thru 15 -13). Based on payments made to us, the Ardmore - LaSalle Church will acquire parcels noted at item 6e outright. Therefore, we will no longer have a time sales arrangement to worry about. Ms. Auburn: Does this Minority Encouragement Inc. still exist; is it still a corporation? Mr. Ellison: To the best of my knowledge, yes. It is a state chartered non - profit organization. -12- South Bond Redevelopment Commission Regular Meeting - May 2, 1980 6. NEWIBUSINESS .. 6e. 6f. Ms. Auburn made a motion to rescind Resolution #609, authorizing the execution of Redevelopment Agreement APPROVAL GIVEN TO for the disposition of land and the RESCIND RESOLUTION #609 execution of quit -claim deed(s) for FOR DISPOSAL OF LAND IN the transfer of title thereto in LASALLE PARK PROJECT connection with land to be disposed IND. R -57 (PARCELS 15 -10 of in the LaSalle Park Project, THRU 15 -13 & 17 -23 THRU Ind. R -57 (Parcels 15 -10 thru 17 -26 TO ARDMORE - LASALLE 15 -13 and Parcels 17 -23 thru CHURCH OF CHRIST FOR 17 -26 to Ardmore- LaSalle Church of $1,158.00 Christ in the amount of $1,158.00), seconded by Mr. Robinson, and the motion was unanimously carried. Mr. Donaldson made a motion to approve Resolution #612 authorizing the execution of Redevelopment Agreement for the disposition of land and the execution of quit- RESOLUTION #612 APPROVED claim deed(s) for the transfer of FOR DISPOSAL OF LAND IN title thereto in connection with LASALLE PARK PROJECT, land to be disposed of in the IND. R -57 (PARCELS LaSalle Park Project, Ind. R -57 15 -10 THRU 15 -13 TO (Parcels 15 -10 thru 15 -13 to ARDMORE- LASALLE CHURCH Ardmore - LaSalle Church of OF CHRIST FOR $576.00 Christ in the amount of $576.00), seconded by Ms. Auburn, and the motion was unanimously carried. Ms. Auburn made a motion to rescind Resolution #563, authorizing the execution of Redevelopment Agree ment for the disposition of land APPROVAL GIVEN TO RESCIND and the execution of quit -claim deed(s) RESOLUTION #563 FOR DISPOSAL for the transfer of title thereto in OF LAND IN LASALLE PARK connection with land to be disposed of PROJECT IND. R -57, TO in the LaSalle Park Project, Ind. R -57 MINORITY ENCOURAGEMENT & (Parcels 20 -5, 20 -6, 20 -7, 20 -8, 20 -9, COUNSELING SERVICES and 20 -10 to Minority Encouragement ASSOCIATION, INC. FOR & Counseling Services Association, PARCELS 20 -5, 20 -6, 20 -7, Inc., in the amount of $2,000), seconded 20 -8, 20 -9, & 20 -10 FOR by Mr. Donaldson, and the motion was $2,000 unanimously carried. -13- South B Regular Redevelopment Commission ting - D y 2, 1980 6. NEW BUSINESS g. Commission approval requested for Resolution #613 encouraging the Common Council.of the City of South Bend to amend Chapter 21, Article 2, Division 7, Section )l -1 R I r I n tha Ci i-v r% -F Cniifh end, Indiana, to extend the ontrolieU use exem tion area to nclu e the proposed East Bank edevelo ent area and to amend a ter 21, Article 5, Di.vi.sion 3 ection 21 -102 of the Municipal ode of the Citv of South Bend. Indiana to designate the East Bank Core Area as exempt from all accessory parking requirements. Mrs. Kolata: We have a map here this morning (showed to everyone present at the meeting) just to refresh everybody's memory, that the proposed redevelopment area will more than likely be this entire area. The Community Development Department has been planning for a couple of years for this proposed project to try to make a change in the use of the land in this project area. Presently, as you are aware, it is underutilized, and has underutilized land and vacant structures. During the course of the planning we have come across several items which need to be addressed, not only in our land use plan, but various City regu- lations, and ordinances also. The ones that we are talking about today have to do with controlled uses and the parking. As you are aware, the general objective for the whole area is to promote a high quality, high density residential eighborhood, with some supporting commercial facilities. -14- South B7nd Redevelopment Commission Regular Meeting - May 2, 1980 6. NEW (BUSINESS F'1 Mrs. Kolata continues... In order to achieve this high density development, current zoning restrictions regarding the parking exemption is not compatible. The Land Use Plan that we intend to propose within the next few months will have provisions for parking and will have a requirement for parking, but it will not be the same as what the current requirements are for this area. With that in mind we would like to recommend to the City Council that they pass a revision in the parking use to include an area from Jefferson to Niles to PIadison and then back to the river. This would make the area exempt from the parking restriction, as the downtown is. The parking component of the land use plan that we will be bringing to you later in the summer will probably provide for some surface parking over in the block between Niles and Hill Street, but the main or core area of East Bank we would see the land as much too valuable to devote to surface parking lot. Another related issue has to do with controlled uses. We would like to see the area developed with high density residential, but we also see that being as close to Century Center in downtown as it is, that there is great interest in having restaurant facilities, and to exempt them from the controlled use restriction in the same way that the downtown is exempt from the 1,000 ft. limitation on the number of controlled uses that can be given. We are talking in terms of Class "A' restaurants, not anything beyond that, and that again, the controls that will be put into effect through the land use plan when we adopted the redevelopment area, will also have some say as to where commercial development would take place within the area. We feel that in order to proceed with the land use plan for the redevelop- ment area we have to have this question settled. -15- South Bond Redevelopment Commission Regular Meeting - May 2, 1980 6. NEWIBUSINESS g. IMrs. Kolata continues... It has to be addressed at this point because it is a direct conflict between devoting a large portion of the area to surface parking or not devoting that area to surface parking. That is why we have presented the resolution to you today. I have met with the Council of Human Resources and Economic Development Committee, and they felt that this was consis- tent with the objectives that we have been stating for the last couple of years and they indicated their support of these two ordinances. Mr. Nimtz: Actually this is not Linder our jurisdiction as yet but we are only to recommend that this be done. Mrs. Kolata: That is correct. We are saying that these are two of the items that we are going to be addressing in the land use plan. It could be that we come up with the land use plan first and then have to go back and make the zoning compatible with the land use plan. We are saying that we recognize this need. There are other needs that we are recognizing also that will have to be addressed. We have these items right now and we know that no matter what the specifics of each block are that these problems are going to come up and we feel they should be handled right now. Mr. Cira: What happens if somebody puts up a commercial business in there and they want so much parking, then you have to go back and repass the ordinance don't you? W. Kolata: No. What it would say is that it allows the flexibility to have them put the parking where they can put the parking if they wish. Mr. Cira: Regardless of what kind of business, not only restaurants? -16- South B nd Redevelopment. Commission Regular Meeting May 2, 1980 6. NEW BUSINESS g. continued.... Mrs. Kolata: That is true. Mr. Nimtz: That it would not be required. Mrs. Kolata: That it would not be required; and that if it is a block and one half or two blocks, maybe even three blocks away that it is pretty much their business. We are saying that in our land use plan that this is going to be a pedestrian oriented area. Particularly, the area up to Niles because of the race way and the park like atmosphere. We feel it is incompatible to have a very attractive area and then have surface parking area surrounding it. W. Donaldson: What do the double lines on the map indicate? Mrs. Kolata: They indicate the East Raceway will be located there. They feel that this is going to be such desirable land and that the area is just too valuable for parking and that we do not want to see a large portion of that be required for parking. If somebody chooses to do it on their own, fine, but we can make provisions to have parking other than there. Mr. Robinson: Using Ms. Auburn's theme and being the devil's advocate what happens if we don't obtain the grant to develop that area and Common Council has passed the parking ordinance? Mrs. Kolata: We already have the money for our portion of it. There is an appli- cation in for a grant to open the East Raceway, and that is still in the works right now. Plus there is going to be a bond issue for the Park Department. We have the money and we can draw down the money at any time. -17- South Bond Redevelopment Commission Regular Meeting - May 2, 1980 6. NEW IBUSINESS g. continued... fr. Cira: Are you thinking about partments there? [rs. Kolata: Yes. The plan at the oment is roughly for about 1,000 nits of housing in the area. Ir. Cira: Do you have much parking? Ys. Kolata: For the parking I would uspect that the developers of the ousing will know and recognize the eed for parking via underground parking arage, etc., but they will have to ake that into account. Certainly hey will recognize the need for . Cira: In other words, you don't at to allocate more space to the artment complex for parking? s. Kolata: What we are saying is at we don't want to see all of the nd turned into surface parking lots. e best use of the land is to promote high density urban environment and an make other provisions for the rking on the fringes or underneath e apartments or whatever the case v be. r. Ellison: What we have really con - luded is that the East Bank is just of a very large land area for the develop - ent potential. That has become very clear o us through the two years that we have een looking at this area. It is also ery clear that there are some commercial pportunities that the absence of xemption may prevent. For example, the &M Building is now vacant. It is on the arket and we understand it may be under ption. If someone wanted to put a estaurant use in there, it would of be possible under current zoning eauirements because of its locational elationship to the Moonraker. We think hat reasonable analysis suggests that x-18 - South Bond Redevelopment Commission Regular Meeting - May 2, 1980 6. NEW IBUSINESS L-91 Mr. Ellison continues... commercial uses compatible with some residential use on the Mill Race site, some residential re -use in existing structures, is likely to be the highest and best reuse of the land and that it appears obvious that there is no question that the area has to be exempted from parking and controlled uses if redevelopment is to occur. . Donaldson: What type of using? Mrs. Kolata: We are not talking single family units. It would be apartments, condominiums perhaps townhouses, but not single family. There would be some reuse of perhaps the Robertson's Warehouse, the Opalike Building over there, to accommodate a variety of housing needs, and have it cover different economic needs as well as whether they be rental, or purchase or subsidized. To provide for just a variety of housing needs within the area. . Cira: You are going to have xed zoning though, commercial and residential. Mrs. Kolata: Okay. That is one of the other things that we will be addressing a little bit later. That is, perhaps we will need a whole new zoning classi- fication for this area to specifically say what types of uses will go in there. We recognize that need but haven't recognized the solution yet. . Ellison: What we are talking about is intown residential commercial community. e information that we have obtained eviously from Rouse suggests that the st Bank is right both for residential e to get people near downtown, and it is so right for commercial use as evident what is already going on. -19- South B�nd Redevelopment Commission Regular Meeting - May 2, 1980 6. NEW (BUSINESS g. continued ..... Cira: It is very difficult to get two tied in on one location. I would k that it has to be one or the other. Mr. Ellison: Not really. We have had a housing proposal on the so called Mill Race site, north of LaSalle. It is our perception that the private sector sees the area as desirable for both. Also, based on the relationship of existing structures, we think there are going to be some opportunities for a combination of housing and commercial use within the same structure. The I &M building is probably the best example of what might likely occur. Ms. Auburn: At some point in time we are going to look at the proposed. ors. Kolata: Yes. Probably by the niddle of August or end of August we will be prepared to have our declaratory resolution on this area, that is what we are looking at. Y1r. Nimtz: Mr. Robinson, to answer your questions concerning money, I have been neeting with the staff on this preliminary and as Mrs. Kolata says, we have the money to take down for our part of this thing. Together with that and the interest we have displayed to the people we know what is going on there now, plus the Dther interest we have had displayed, and the rumors we have been getting, unless Are get into a deep recession, I think that is going to be the next area that will 3egin moving, and although the opening of the East Race is going to be a tremendous job (I guess it is going to be quite Dxpensive) because concrete was dumped in there when they filled it up. That nay be some time coming but I think the project, itself, because of what we have and the interest that has been displayed is about to take off. Don't you agree qr. Ellison? -20- South 4nd Redevelopment Commission Regular Meeting - May 2, 1980 6. NEWT BUSINESS g. continued.... W. Ellison: Absolutely. Clearly, the land that Mrs. Kolata mentions is underutilized and it has historically been industrial. There remains some industrial uses. Clearly, those industrial uses do not put that land in today's market to the best use. Thus we are at a time where it is necessary for the City in general and the Department of Redevelopment to try to move ahead and convert the area to one that is predominately residential with compatible commercial uses. Mr. Nimtz: Any Questions by the press or news media? Ms. Derbeck: It appears to me that in the mixing and a little bit of commercial in a highly residential high density residential it is similar to those neighborhoods in Chicago and Washington. Mr. Nimtz: When Mr. Westmoreland was here working for Southold about two years from Cincinatti he was in awe about the potential of that area, and he has great imagination. Of course, it takes imagination and it takes money. Ms. Derbeck: When you say Class "A" restaurant does that mean you are identifying the restaurant? Mr. Ellison: I think she really means Class "A" controlled use as opposed to a Class 'B ". Mrs. Kolata: According to the zoning there are two types of controlled use. A Class "A" and a Class `B ". We do expect that they will be fairly high quality establishments of the Class "A"' variety only.. -21- South Bond Redevelopment Commission Regular Meeting - May 2, 1980 6. NEWIBUSINESS g. continued... Mr. Ellison: An example of a Class 'B "controlled use is a drinking establishment that for entertainment displays the human anatomy. Mr. Robinson made a motion approving Resolution #613 encouraging the Common Council of the City of South Bend to amend Chapter 21, Article 2, Division 7, Section 21 -18(c) of the City of South Bend, Indiana, to extend the controlled use exemption area to include the proposed East Bank redevelopment area and to amend Chapter 21, Article S, Division 3, Section 21 -102 of the Amicipal Code of the City of South Bend, Indiana to designate the East Bank Core Area as exempt from all accessory parking requirements, seconded by Mr. Cira, and the motion was unanimously carried. 7. PROGRESS REPORTS Mr. Nimtz: First of all I would like to announce to the Commission, they arenit aware of this; I didn't read it in the paper last evening but I was present,.. our Director was given the "Good Government Award" by the South Bend Jaycees. It was a law day luncheon and they gave him some very compli- mentary well deserved remarks.. Mr. Ellison, we wish to congratulate you upon your recognition by the community for the various activities that you participated in and for what you have done for the Commission. Your name is being added to a distinguished list of former recipients on the 4th floor of the County -City building. Congratulations to you, we are very proud of you! Mr. Ellison: Thank you. -22- RESOLUTION #613 APPROVED ENCOURAGING CO",ION COUNCIL TO AMEND CERTAIN PORTIONS OF THE MUNICIPAL CODE OF THE CITY OF SOUTH BEND, INDIANA CONCERNING EAST BANK CORE AREA DISCUSSION CONCERNING PRESENTATION OF GOOD GOVERNMENT AWARD TO CARL ELLISON, DIRECTOR OF REDEVELOPMENT South Bond Redevelopment Commission Regular Meeting - May 2, 1980 7. PROGRESS REPORTS (continued) a. lInterim Leases in Century Mall Project Mr. Ellison: Included in our packets is a letter labeled 7a. It is a letter which I wrote pursuant to the authori- zation of the Commission at our last meeting. It reads as follows: Ap&a 25, 1980 Dean Candidate; By this tettetc the Depatrtme.nt o Redevelopment a�) the City o4 South Mend heneb y s oticitz ptc.opots aE6 4o& the tease o4 cetctain ptw petr ties to cated w,ith.i.n, the Downtown . Utcban Renewal Atcea (IND. R-66). These pno pe&t i,e..s ate: Pattcet # Name 9 -22 Lane BMant 9 -23 Houpse o4 1=abxi.cs 9 -25 LetnM 'asst Pete Cast Pete gauan�oot a $1.075 $540.00 $1.25 $430.00 $1.20 $398.00 These pno pert ies may be teased to potiti.cat entities. The depo tment Witt tcecei.ve wtutten pnoposa z gate the tease a4 the above mentioned ptwpeAties at -its o�Aices in Room 1200, County -City Building, South Bend, Indiana 46601 until 9:00 a.m. on May 2, 1980. Appk6 x i Mate H6 65i SquaU Feet Each ptw posat must des cAib e the .intended use o4 the ptw peAt y as weft as the des,ur ed tease pehiod. In addition, the pnapo�sat must estate the ptw passed monthly nentat payment to be made to the depaAtment. ( Please note that the pupozed ttent cannot be tens than the "cost pert month" indicated above) . -23- 6076 4125 3980 South Bond Redevelopment Commission Regular Meeting - May 2, 1980 7. PROGRESS REPORTS a. Icontinued..... The person of petusons tequefsting occupancy must show ptoo �, via a centiAicate ofs in6utance that they have $250,000 bodrty, tia.bit t y eovetage and $1,000,000 ptopetrty damage eovetrage. The ceAt,jicate .shah name the Redevelopment Commission and the City o4 South Bend as additionat insuAeAs and must be provided upon signing the Zea6e. Lee/sees ate not e igibte Got te2oeation benej ts. Futrthec, neee/ssaty aehab.it tat on eolstis associated with the building ate the ,s ote tes ponlsibiUt y o6 the pto pops ed tenant. Shoutd you have questionA of need ,supptementa.2 in4o4matt.on, ptea�se contact Ann Kotata of Kevin Hotton o4 my sta44 at (219) 284 -9371. Sincete2y, S/ Cat2 Ettius on Executive pitectot Mr. Ellison: We sent this letter to all candidates for local office, both parties, who are registered for the-primaries in Indiana, or St. Joseph County. Some 83 letters were sent outlining the rents as established by two appraisals and proclaimed by me as authorized by the Commission for three properties in question. We asked that any responses to the letter be received by 9:00 a.m. today. The only response we have received is from the Citizens for Brademas Organization by letter dated April 2S, 1980, which reads as follows: Aptit 25, 1980 Tit. Caitt E2?,izon Executive Dice tot pepantment o4 Redevelopment City of South Bend Suite 1200, County-City 8uitding South Send, Indiana 46601 -24- South B nd Redevelopment Commission Regular Meeting - May 2, 1980 7. PRO RESS REPORTS a. (continued.... Mt. E" o n: Puu cant to the action o4 the Board of Redevelopment Commussioneu on FAiday, ApAit 25, 1980, we ate hereby making a propozat �3oA the tease o4 the jaeitity known as the Lane Bryant Building, 131 S. Michigan Street, South Bend. We undetustand that this �aci tUy wiU Pleas e at a 4ai t make value, as de tenmined by yo uA co nt acted eeo nomica l appAa.us at, at a Rate o6 $540.00 pen month. We hetnein make a bid o4 $540.00 peA month jon a seven (7) month peA od, beginning May 1st thAOUah November 30, 1980. We undetustand, and w,iU comply with, the nequ iced �I e ing o �j a Cetr ti jica-te o j I ns utanee. It is out undetus tanding 4utr theA, that the execution o4 a .lease agreement, i� accepted, w.i t take ptaee on Ptriday, May 2, 1980. Thank you 4oA youA co nsideAation in this mat-teA. Sincenet y yo wus , S/ R.ichaAd B. Hunt �oA Citizens for BAademaz Committee Mr. Ellison: We did not receive any letters or phone calls from any other candidate despite the mailing of those 83 letters. Therefore, we presume there exists no further interest on this matter. Ms. Nimtz: Mr. Ellison, we might say that we also sent the letter to the County Chairman. The letters went to respective county chairman, and presidential organi- zations, etc. . Ellison: Relative to the Citizens for ademas letter, Mr. Richard Hunt is esent today. -23- South Rep-u1 7. and Redevelopment Commission Meeting - May 2, 1980 REPORTS a. I continued... Mr. Nimtz: The Chair is pleased to recognize Mr. Richard Hunt. Mr. Hunt: We propose to meet the guidelines of the lease agreements on the mall buildings and hope that the Commission will accept our bid request of $540.00 per month. I am prepared to submit a Certificate of Insurance binder today, also execute any agreements which are necessary. Mr. Nimtz: In other words, you want to get in there as soon as possible. Mr. Hunt: Yes sir, I am operating out of a small office area and I certainly need the space. Mr. Robinson made a motion to approve a lease for the Citizens for Brademas Committee in the Lane Bryant building, for $540.00 per month, subject to legal counsel review, seconded by Mr. Donaldson, and the motion was unanimously carried. Mr. Ellison: I want to say that we received a note that indicates that we have finally acquired the Family Book Store. We have paid into the court yesterday, whatever the amount was that was required (we don't have a clerk's deed yet). The Chapel and Boul Jeff Restaurant are the only two properties left to acquire. Secondly, we have received a number of inquiries since we have been seeking to lease Century Mall property on an interim basis. We received a number of expressions of interest from non - profit groups who are interested in leasing property for $1.00 for various uses. One is for a club for old- timers to use the second floor of the property on the corner of the mall facing Jefferson. -26- APPROVAL GRANTED FOR THE LEASING OF THE OLD LANE BRYANT BUILDING (CENTURY MALL IND. R -66) TO CITIZENS FOR BRADEMAS COMMITTEE South Bend Redevelopment Commission Regular Meeting - May 2, 1980 7. PROGRESS REPORTS a. continued... Mr. Ellison continues... Others were from a variety of non - profit organizations. In any event, the staff felt the need for policy guidance in this area. It is the staff's view that $1.00 leases to non- profits are probably not desirable because such leases would not seem to fit the objective of leasing to retailers. Further, it would seem unreasonable to rent to non - profit for costs other than economic rent based on the fact that the only other non - retail group with whom we have approved is the lease (Citizens for Brademas) who is paying economic rent. Short term leases to non - profit organizations are, I think, inconsistent with what our general discussions have been on the matter. Ms. Auburn: I wonder if they really have a realistic picture of the financing that would take for them to move into one of those buildings. To meet the insurance, the liability, to hook up some of the electrical plumbing hookups to get furniture moved in, and to make it usable. There may be some perception on their part that some of those buildings are usable as is, when indeed they are not. Drs. Kolata: Ms. Auburn, some of the groups.have looked at the buildings and have actually expressed a willingness to provide the insurance, however, it is their impression not to really do anything to the building other than moving in a desk or two. They really do not plan on doing anything to the building. Mr. Donaldson: What about utility service? Ms. Auburn: You have to meet code and have the plumbing fixtures, etc.? -27- South Bond Redevelopment Commission Regular Meeting - May 2, 1980 7. PROGRESS REPORTS a. continued.... Mrs. Kolata: That is correct. Mr. Cira: I think you would be leaving the door open for a lot of undesirables. I would say that you keep it retail. Mr. Nimtz: I think that we should make it for only commercial use. Ms. Auburn: I think that at some later date if all of the buildings are not filled with commercial use, then we can pursue it. 8. NE2q COMMISSION MEETING The next regularly scheduled South Bend Redevelopment Commission Meeting will be helc. on May 16, 1980, at 10:00 A.M. Ms. Derbeck: I haven't heard for quite some time any progress reports on the mall. Mr. Ellison: Ms. Derbeck, in the nutshell the Century Mall is not stopped. I have had some conversations with a potential leasing agent who we might want to add to give us some advice on the retail economics. We believe there is a need based on having cost estimates from Gruen to better understand the economics from the standpoint of the investors for the retail itself. There has been some contemplation as indicated some time ago under Mayor Nemeth of retaining a leasing consultant to assist us in evaluating the retail component. Mr. Nimtz: It is under consideration right now. Mr. Ellison: Obviously the Odd Fellows Building goes on and that is clearly related to the overall project itself. TRANSPO is about to submit its application for two Will NEXT COWISSION MEETING South Bend Redevelopment Commission Regula Meeting - May 2, 1980 OA be a was was Mr. Ellison continues... million dollars for the transit portion of it. We have not had any recent conversations with GSA, but the issue is not dead. Things are happening although a little more slowly than anticipated. Mr. Nimtz: Transpo had a meeting I believe it was last week, or the week before and designated two of their members to be working with us concerning their relationship to the project and working out the details. re being no further business to come ADJOURNMENT )re the Commission, Mr. Robinson made >tion that the meeting be adjourned, )nded by Ms. Auburn, and the motion unanimously carried. The meeting adjourned at 11:00 A.M. -29- Carl Ellison, Executive Director