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HomeMy WebLinkAboutRM 05-15-81SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING May 15, 1981 1200 County -City Building 10:00 a.m. 227 W. Jefferson Boulevard Presiding Officer: Mr. F. Jay Nimtz South Bend, Indiana 46601 President --w 1. ROLL CALL Members Present: Mr. F. Jay Nimtz, President Mr. A. Peter Donaldson, Secretary Mr. Robert J. Cira, Assistant Secretary Ms. Paula N. Auburn, Member Members Absent: Legal C Redevel nsel: Mr. Lloyd E. Robinson, Sr., Vice President Mr. Kevin J. Butler opment Staff: Mr. Patrick M. McMahon, Executive Director Mrs. Ann Kolata, Deputy Director Mr. Kevin C. Horton, Deputy Director Mr. Rick Pitts, Acquisition Specialist Mrs. Angela M. Coar, Executive Secretary Ms. Christal Taylor, Secretary Community Development Sta f: News Media: Guests: 2. APPROVA OF MINUTES Mrs. Kathryn Baumgartner, Director, Bureau of Housing Ms. Jeanne Derbeck, South Bend Tribune Mrs. GlendaRae Hernandez Mr. Alex Wolvas Mrs. Gloria Wolvas On motion made by Mr. Cira, seconded by Mr. Donaldson MINUTES OF REGULAR MEETING and unanimously carried, the Minutes of the Regular OF MAY 1, 1981 WERE APPROVED Meeting of May 1, 1981 were approved. 3. APPROVAL OF CLAIMS On moti n by Mr. Donaldson, seconded by Ms. Auburn CLAIMS APPROVED and unanimously carried, the claims totalling $24,221.29 were allowed and ordered to be paid. The authorized claims re: South Bend Redevelopment Commission Regular Me ting - May 15, 1981 3. APPROV4L OF CLAIMS (continued) REDEVELOPMENT DISTRICT CAPI Joseph Kutch - Petty Cash Travel ore S. M. Dix Associates, Inc. Ni -Cad Inc. Loews- ummit Hotel TOTAL P.E.A.I- MONROE- SAMPLE AREA Ronald E. Gettel Jerome E. Michaels, MAI, SRPA Esther S. Powers, SRA TOTAL P.E.A. - IND. R -66 Payroll: 4 -18 -81 to 5 -01 -81 Abstract Company of St. Joseph County, Inc. Abstract Company of St. Joseph County, Inc. Allied Construction Company Business Systems, Inc. Council of State Planning Agencies Council for Urban Economic Development Credit Bureau of South Bend - Mishawaka First Lease, Inc. Bob Frame Plumbing & Heating, Inc. Indiana & Michigan Electric Company Joseph Kutch - Petty Cash Makielski Art Shop Patrick M.McMahon Postmaster Seifer Safe & Lock Service Superintendent of Documents The Urb n Institute Smith P troleum, Inc. Ronald . Gettel Coffee Fime Services Slidecr ft Laboratories, Inc. Time, I c. (Fortune Magazine) Univers.ty Moving & Storage, Inc. Theresa D. 0`Nell $. 7.70 324.00 675.00 24.00 94.10 $ 1,124.80 $ 1,500.00 1,865.00 7,255.00 $10,620.00 $ 7,190.69 230.00 1,102.50 144.04 46.64 7.95 215.00 10.00 211.50 65.47 43.29 52.63 11.80 92.11 272.29 40.00 9.50 9.38 107.70 800.00 26.65 4.00 29.95 790.00 1 r nn TOTAL $11,673.09 South Bend Redevelopment Commission Regular Me Ling - May 15, 1981 3. APPROVAL OF CLAIMS (continued) P.E.A. - 312 LOANS Art Keel Art Kell & Scotmar L.D.W. TOTAL GRAND TOTAL 4. COMMUNICATIONS $ 416.99 386.41 $ 803,40 $24;221.29 Mr. Mc ahon explained that we have received an official notice from John Phair, the managing partner of Columbia Place Pssociates, of his attempt to pursue an IRB in the amount of $1,550,000. COLUMBIA PLACE ASSOCIATES 3043 NORTH NORWAY MAPLE COURT SOUTH BEND, INDIANA 46628 May 12, 1981 South Bend epartment of Redevelopment County-City Building, 12th Floor South Bend, Indiana 46601 Gentlemen: As required by Section 601 of the Contract for Sale of Land for Private Redevelopment dated November 7, 1975, between the South Bend Department of Redevelopment and St. Joseph River Bend De- velopment C rporation, this will inform you that Columbia Place Associates (the "Purchaser "), and St. Joseph River Bend Develop- ment Corpor tion, are executing a Mortgage, Loan and Security Agreement in favor of the City of South Bend, Indiana (the "City ") imposing a Lien on the real estate described in Exhibit A, attached to this letter, to secure the loan from the City to the Purchaser in the amount of $1,550,000.00 from the proceeds of the sale by the City of its Economic Development Revenue Bonds (Columbia PlZace Associates Project), Series 1981. Sincerely, S/ John T. Phair, Managing Partner 3 LETTER FROM JOHN T. PHAIR WAS RECEIVED AND PLACED ON FILE RELATING TO COLUMBIA PLACE ASSOCIATES PROJECT South Bend Redevelopment Commission Regular Me ting - May 15, 1981 5. OLD BUSINESS Mr. Mctahon explained that there was one item of busi- ness u der Old Business, a revision for Proclaimer No. 1 for thE East Bank, and asked Mrs. Kolata to explain. Mrs. K lata explained that there was a need to revise Proclaimer No. 1 for the East Bank Development Area as it has been determined that a billboard on Parcel 1 -17 is on the portion not to be acquired and the cost of the billboard should be subtracted from the purchase price. PROCLAIMER NO. 1 FOR EAST On motion made by Ms. Auburn, seconded by Mr. Donaldson BANK DEVELOPMENT AREA WAS and un nimously carried, Proclaimer No. 1 for the East AMENDED REGARDING PARCEL Bank D velopment Area was amended. NO. 1 -17 6. NEW BUSIINESS a. Commission approval requested for the following 312 Loan Program" ro' osals in accordance with recommendation of the Bureau of Housing. Name Contractor :Amount Naoma Newsome Kruszynski Construction $1,350.00 806 North Elmer St. Company Joseph Kuzmits Richard Leslie, Custom 585.00 2101 S. Franklin St. Builders COMMISSION AWARDED TWO (2) On he motion made by Mr. Cira, seconded by Mr. PROPOSALS IN CONNECTION Don ldson and unanimously carried, the Section WITH THE SECTION 312 LOAN 312 Loan Program proposals were awarded. PROGRAM b. Commission approval requested for the followinq Grant Pro ram bid contracts in accordance with recommenda do of the Bureau of Housin ; subject'to Common Cou cil'concurrence and'le al review. Name Contractor Amount Theresa Papczynski Jurtin Construction Co. $ 7,506.00 2506 Poland Street Rosalea ha Newbill Jurtin Construction Co. 1106 W. Thomas Street 4 10,953.00 South Bend Redevelopment Commission Regular. Me ting. --May 15, 1981 6. NEW BU INESS (continued) b. codtinued... Name Contractor Amount Helen 4 i ngo 1402 E. Miner Street Mary V gel 1802 S.1 Jackson St. Jurtin Construction Co. Wilton Construction Co. Lucill White Wilton Construction Co. 521 E. Howard Street Rose Z mlyak 1622 S. Williams Marjorie Perkins 1031 T yckenham Dr. Sophie Orzeckowski 417 S. Grant Street Wilton Construction Co. Wilton Construction Co. $10,953.00 8,562.00 10,529.00 9,478.00 9,690.00 Charles Brown Maintenance 4,370.00 Co., Inc. Mr. McMahon explained that when these contracts are awarded, Kathy Baumgartner sees that the contractors arE in a position to take on this number of contracts and still complete them within the time requirements of the Bureau. These are all low bidders. On motion by Ms. Auburn, seconded by Mr. Cira and COMMISSION AWARDED EIGHT unanimously carried, the Grant Program bid contracts (8) CONTRACTS UNDER GRANT were awarded per recommendation from the Bureau of PROGRAM Housing. C. Coiission consideration requested for a tax abatement re uest relative to: an area commonly referred to as exander's Jewelry). Mr. McMahon presented the staff report and recommenda- tion. The report stated (1) conditions exist on the area in question which can be corrected by regulatory process or by the ordinary operation of private enter- prise, (2) the area in question has not been bypassed or underutilized due to economic circumstances which have deterred normal development, and (3) the area in question has not become undesirable for, or impossible of, normal development and occupancy because of the lack of development, cessation of growth, deterioration of improvements or character of occupancy, age, 5 South Bend Redevelopment Commission Regular Me ting - May 15, 1981 6. NEW BU�INESS (continued) c. con1tinued... obsolesence, substandard buildings or other factors which have impaired values or prevent a normal de- velopment of property or use of property. Mr. Wolvas explained that the property was an old gas station and in a bad area. At the time he bought the building the City Council had no definite procedures for tax abatement. They had to go ahead with their plans and complied with everything as far as con- struction, zoning, etc. Mr. Wolvas stated that down- town South Bend needs small business and they need every bit of help they can get. Mr. Wolvas hoped the Commission would consider the fact that the City Council had no procedures and would like tax abate- Mr. McMahon explained that there has been some con- fusion between the Commission and the Council with respect to ground rules for tax abatement; however, the application process has been in place for well ov r a year. He emphasized that the improvements are very beneficial, but the staff does not feel the building qualifies for tax abatement. Ms. Auburn stated she felt this type of situation was frustrating because we have not looked at in- novative and alternative ways to finance and to support small business in the community. Also, one of the problems with the tax abatement issue is the fin ncial situation with the city right now, and the realization that what we are doing is reducing fut re income for the city. On iiotion made by Mr. Cira, seconded by Mr. Donald- son and unanimously carried, the Commission approved the staff report to not recommend tax abatement for Ale ander's Jewelry. d. Commission approval requested Executive Director to execute Proclaimer Certificate No. 2,'establishin the fair market vdlue for property to'be acquired in the Monroe - Sample Development Area. Mr. McMahon explained that the Monroe - Sample Pro - claimer No. 2 establishes values in the Monroe - Sa ole area COMMISSION RECOMMENDS TAX ABATEMENT NOT BE APPROVED FOR 322 N. MICHIGAN STREET (ALEXANDER'S JEWELRY) South Bend Redevelopment Commission Regular Me ting - May 15, 1981 6. NEW BUSINESS (continued) d. continued... Mr Nimtz disqualified himself and in the absence of the Vice President placed the Secretary, Mr. Donaldson, in the chair as he (Mr. Nimtz) represents two of the people listed on the Proclaimer. On motion made by Ms. Auburn, seconded by Mr. Cira and unanimously carried, Proclaimer No. 2 for the Monroe-Sample Development Area was approved. e. Commission approval of Resolution No. 639 relating to acquisition of property by Condemnation, Monroe - Sa Ole Development Area. and f. Commission approvalof Resolution No. 640 relati to acquisition of" ro erty b condemnation, East Batik Develooment Area. Mr McMahon explained that these two resolutions al ow us to pursue acquisition right through to co demnation. Mr Butler stated that the statute requires a 25 -day no ice period to the property owners before we move to condemnation, and that is what is done by the re olutions. Mr Nimtz disqualified himself and placed Secretary A. Peter Donaldson in the chair for consideration of Re olution No. 639. On motion made by Ms. Auburn, seconded by Mr. Cira an unanimously carried, Resolution No. 639 was ap roved. On motion made by Mr. Cira, seconded by Mr. Donald - so and unanimously carried, Resolution No. 640 was ap roved. 7 PROCLAIMER NO. 2 FOR MONROE- SAMPLE DEVELOPMENT AREA APPROVED RESOLUTION NO. 639 RELATING TO ACQUISITION OF PROPERTY BY CONDEMNATION IN THE MONROE- SAMPLE DEVELOPMENT AREA APPROVED RESOLUTION NO. 640 RELATING TO ACQUISITION OF PROPERTY BY CONDEMNATION IN EAST BANK DEVELOPMENT AREA APPROVED South Ben0edevelopment Commission Regular Meeting - May 15, 1981 6. NEW BU_INESS (continued) g. Commission I appNvalrequested fullowin 'Lease Agreement in -1 Busi.ness'District. Parcel Pao. enter into the T707—R-66 Central Lessee 11 Rent Acquisition Parcel 8 -10 Griffon Bookstore $231.00 /mo. 124 South Michigan Mr. McMahon explained that this is a temporary re- location and the rent is identical to that which they were paying to the City at their previous location. LEASE AGREEMENT WITH THE GRIFFON BOOKSTORE, 124 On motion made by Mr. Cira, seconded by Ms. Auburn SOUTH MICHIGAN STREET and unanimously carried, the lease with Griffon Book- APPROVED st re was approved. h. Co mission Approval requested for Subordination Agree- men t f&* H6mostead " Proeertdfloeated'at 913 Wilbur St eet Phillip and Jenifer B611). Mrs. Kolata stated that the City's subordinating its interest in the property to the interest of the mo tgager, St. Joseph Valley Bank. The Bank would have first interest and the City of South Bend would have the second. SUBORDINATION AGREEMENT Mr. Cira moved for approval of the Subordination FOR 913 WILBUR STREET Ag eement. Mr. Auburn seconded the motion and it was (PHILLIP AND JENIFER un nimously carried. BALL) APPROVED i. Se date for public hearing relating to Monroe -Sam le De5 laratory Resolution No: 636. Mr. Donaldson moved to meet on June 12, 1981 for the public hearing on the Monroe- Sample Declaratory Resolu- tion No. 636. The motion was seconded by Ms. Auburn and unanimously carried. PUBLIC HEARING FOR MONROE- SAMPLE DECLARATORY RESOLU- Mr. Nimtz declared the next regular meeting to be held TION NO. 636 SET FOR on June 12, 1981 at 10:00 a.m. rather than June 5, 1981QUNE 12, 1981 South Ben0edevelopment Commission Recgu.1ar Me ti ng - May 15, 1981 6. NEW BUSINESS (continued) j. Commission authorization requested to permit Execu- tive Director to enter into a contract with Theresa D. O'Nell as a`summer intern'in the Department'of Redevelopment. Mr. McMahon explained that the Department has hired interns in the past and currently is in need for ad itional help addressing our acquisition and re- location process. This intern would be involved in pr viding that type of assistance. He also noted th t we may need additional help on a temporary basis to handle closings for us and for secretarial assis- ta ce. Upon motion made by Mr. Donaldson, seconded by Mr. Ci a and unanimously carried, the Executive Director was authorized to enter into a contract with Theresa CONTRACT WITH THERESA D. O'Nell with the provision that the contract be D. O'NELL, SUMMER INTERN, amended to provide opportunity for severance on the APPROVED pa t of the Commission. Mr. McMahon asked the Commission to consider an additional item that was not on the agenda. He requested permission for thE Executive Director to execute the formal Community Development contracts that authorize the 1979 and 1980 Community Development funds and Section 108 Funds that are to be used in the Monroe- Sample and East Bank Development Areas. Upon motion made by Ms. Auburn, seconded by Mr. Donaldson and unanimously carried. the Executive Director was autho- rized to execute these contracts, subject to legal counsel and review. 7. PRO Mr. Mc gress LaFree with t ceedin Ms. Der visibl( happen REPORTS hon brought the Commission up -to -date on the-pro- the demolition work being done in the mall area. xcavating is about one -third to one -half finished ing down the existing structures and work is pro- )eck commented that the demolition project is very and people will now want to know what is going to Text. Where is Century Mall? D South Bend Redevelopment Commission Regular Me Ling - May 15, 1981 7. PROGRE S REPORTS (continued) Mr. Mc ahon explained that discussions are still being conducted with prospective developers of Century Mall. We are not achieving the things we would like to see as fast as we can, but there isn't anything influencing it other than the present economy. Retail development in our part of the country is virtually at a standstill becaus of market problems and because of effects of the re ession on the merchants themselves. The City's role is to make land available and provide some assistance publicly to overcome high costs that are inherent with downtown development. We have been using our ability to pursue those finances all along, so over the course of time, while things have gone rather slowly, the City has been able to put itself into a position of providing the financial assistance that we are going to need when it happens. On a related matter, Mr. McMahon explained that he will meet next week with TRANSPO representatives, including the newly designated director, to discuss future develop- ments with respect to the timing of their grant. We have been informed by TRANSPO that they still expect to receive notification this month about the grant which pertains to their activity in the Century Mall area. Mrs. He nandez commented that nothing was mentioned about a site office in the Monroe - Sample Development Area an asked if that meant that the residents would have to wait through the middle of June before anything is done in this respect. Mr. McV arrange office assista for tho we are offers involve to, our Our per wanted point I of the is, but ihon responded that it would be June before vents were finalized and explained that the site vill function more in the area of housing ice to those remaining in the area rather than >e being relocated. Right now the volume that ictually making offers to has been small since lave not been sent out on all of the properties 1. We have also only received a 50% response survey, while we expected a lot greater response. :eption was that more than 50% of the people assistance through these programs and at this don't know if the survey response is indicative "act that they don't want assistance or what it that is a real problem. 10 South Bend Redevelopment Commission Regular Me ting - May 15, 1981 7. PROGRE�S REPORTS (continued) Discus ions have been held with Southold and Historic Land- marks f Indiana regarding the Monroe - Sample Project. We had ho ed to have a formal arrangement to bring before the Commis ion this morning, but have not been able to move throug the process fast enough. To assist us in organiz- ing ou selves in that regard, we asked the Bureau of Housin to do a complete survey of all residential houses proposed to remain in the Monroe- Sample area. The survey has been conducted and a 50% response received. At this point tie think we have a pretty good sample to determine how ma y people would be eligible for the programs in that area - for grants, for loans, what we have to do in order to have maximum impact in the area. We are evaluat- ing what type of funds are available for housing assistance so that we can better structure the framework for us to work w th Southold or whomever would be representing us in the Monroe- Sample area. On ano her item with respect to acquisition in the Monroe - Sample area, we now have 22 options signed. 8. NEXT COMMISSION MEETING The ne t rescheduled regular South Bend Redevelopment NEXT COMMISSION MEETING Commis ion Meeting will be held on June 12, 1981 at 10 :00 .m. 9. ADJOURNMENT There teing no further information to come before the ADJOURNMENT Commission, Ms. Auburn made a motion that the meeting be adj urned. The motion was seconded by Mr. Cira and unanim usly carried. The meeting was adjourned at 11:32 z.m. z, President 9r atrick M. McMahon, Executive Director 11