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HomeMy WebLinkAboutRM 03-12-82March 12, 1 10:00 a.m. Presiding 0 1. ROLL CAUL 2 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING cer: Mr. F. Jay Nimtz, President Members Present: Members Absent: Legal Counsel : Redevelopment Staff Communil Staff : News Mec Guests: 2. APPROVAL Development 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Mr. F. Jay Nimtz, President Mr. Lloyd E. Robinson, Sr., Vice President Ms. Paula N. Auburn, Assistant Secretary Mr. A. Peter Donaldson, Secretary Mr. Roman J. Piasecki, Member Mr. Kevin J. Butler Mr. Richard L. Hill Mr. Patrick M. McMahon, Executive Director Mrs. Ann Kolata, Deputy Director, Redevelopment Mr. Kevin C. Horton, Deputy Director, Economic Development Mr. Donald E. Inks, Fiscal Officer Mrs. Angela Coar, Executive Secretary Ms. Fines Mosby, Secretary Mrs. Kathryn Baumgartner, Director, Bureau of Housing ia: Ms. Jeanne Derbeck, Reporter, South Bend Tribune Miss Anne Thompson, Reporter, WNDU -TV Mr. Les Howard, Reporter, WNDU -TV Mr. Brent Speraw. Reporter, WRBR OF MINUTES Ms. Karen Kiemnec Mr. T. Brooks Brademas Mrs. GlendaRae Hernandez Upon a otion made by Mr. Robinson, seconded by Ms. Auburn MINUTES OF REGULAR MEET - and una imously carried, the minutes of Friday, February 19, ING OF FEBRUARY 19, 1982 1982 we e approved. WERE APPROVED 3. APPROVAL OF CLAIMS Mr. Nim z placed Mr. Robinson in the chair and disqualified CLAIMS APPROVED himself during consideration of a claim for Southold Heri- tage Fo ndation, Inc. South Bend Commission Regular Mee �edevelopment ing - March 12, 1982 3. APPROVAL: OF CLAIMS (continued) Upon a otion made by Ms. Auburn, seconded by Mr. Robin - son and carried, the claim for Southold Heritage Founda- tion wa approved. Mr. Nimtz abstained from voting. Upon a Motion made by Ms. Auburn, seconded by Mr. Robin- son and unanimously carried, the remaining claims, in- cluding one signed earlier in the week and denoted with an asterisk ( *), were approved and ordered paid. REDEVELOPMENT DISTRICT CAPITAL — 1968 Aerovision $ 975.75 TOTAL $ 975.75 REDEVEL PMENT DISTRICT CAPITAL - 1972 Custom hotographic Services $ 246.00 Peat, M rwick, Mitchell & Co. 500.00 Ritscha d Brothers, Inc. 18,000.00 William R. Screes 25.00 TOTAL $18,771.00 MONROE- AMPLE AREA PROJECT Lloyd & Dorothy Boocher - Parcel 8=.8 $ 2,500.00* The Abstract & Title Corporation - Parcels 6 -2 and 6 -3 63.00 Abstrac Company of St. Joseph County - Pa cel 14 -3 2.50 Abstrac Company of St. Joseph County - Pa cel 6 200.00 Abstrac Company of St. Joseph County - Pa cel 10 200.00 Abstract Company of St. Joseph County - Pa cel 5 200.00 City of South Bend 60.79 City of South Bend 10.30 Community Development 22,995.00 Eck Construction 3,492.00 Eck Construction 2,469.00 Eck Construction 843.00 Indiana Bell Telephone Company 35.86 Indiana & t-lichigan Electric Company 27.94 Lang, F eney & Associates 105.00 South Band Water Works 975.00 South Band Tribune 40.50 SouthoIJ Heritage Foundation, Inc. 1,863.69 2 South Bend edevelopment Commission Regular Mee ing - March 12, 1982 3. APPROVA( OF CLAIMS (continued) Territo ial Engineering $ 130.00 Torok E cavating & Demolition, Inc. 4,525.00 Tri -Cou ty News 44.47 Irvin J Manuszak, Clerk - Parcel 14 -47 300.00 Ann Kol to 3.00 St. Jos ph.County Treasurer - Parcel 6 -3 170.62 Irvin J Manuszak, Clerk - Parcel 16 -21 300.00 Irvin J Manuszak, Clerk - Parcel 4 -12 300.00 Donald yers - Parcel 2 -6 43.00 Univers 1 Painting Co., Inc. 24,409.38 TOTAL $66,314.05 EAST BANK AREA PROJECT Irvin J Manuszak, Clerk - Parcel 2 -10 $ 300.00 TOTAL $ 300.00 P.E.A. � R -66 Community Development Smith Standard Heating & Cooling Bethel 3usiness Machines Kevin J. Butler Business Systems, Inc. Business Systems, Inc. City of South Bend - General Fund Community Development Credit 3ureau of South Bend - Mishawaka Dave Da en Dictaph ne Kevin C. Horton Postmaster Smith Petroleum Coffee ime Services Univers'ty of Notre Dame Kevin J. Butler P.E.A. 1 312 LOANS The Kis ell Corporation Wickes umber & Salvador or Hilda Nava retie Wickes umber & Salvador or Hilda Nava ette $ 5,660.75 43.34 177.00 200.00 43.27 43.19 184.00 1,577.00 10.00 10.31 35.46 67.49 90.14 69.51 26.65 96.31 Onn nn TOTAL $ 8,534.42 $ 481.89 74.70 342.41 3 South Bend Commission Regular Mee �edevelopment ing - March 12, 1982 3. APPROVAk OF CLAIMS (continued) Big "C" Lumber & Victoria Duggan Circle umber, Inc. & Carlis or Priscilla Phillips 84 Lumb r /Home Center & Kelly and Charles Cunningham Kissell Company Sherwin Williams & Salvador or Hilda Nava ette 84 Lumb r /Home Center & Salvador or Hilda Nava ette Barthol mew's Inc. & Alex or Denise Wesson William Home Center & Alex or Denise Wess n William Home Center & Ben or Hedy Robin- son Village Lamp Shoppe & Ben or Hedy Robin- son 4. COMMUNICATIONS There wore no communications. 5. OLD BUSINESS $ 449.32 330.77 365.26 1,856.03 240.13 221.98 283.76 322.28 138.04 rl ti, TOTAL $ 5,170.18 GRAND TOTAL $100,065.40 THERE WERE NO COMMUNICA- TIONS TO PRESE14T TO THE COMMISSION a. Repgrt on bid opening for Parcel 4 -1 in the Monroe - Sam le Redevelopment Area on March 5, 1981. Mr. McMahon reported that we advertised for bids for disposition of Parcel 4 -1 in the Monroe - Sample Dev lopment Area (Max's Grocery Store) and re- cei ed no bids at the time the bids were due. b. Mr. McMahon reported that we have been on condemna- tio on Parcel 7 -26 in Monroe - Sample and the attor- ney representing the present owner of the property has recommended that there be a settlement on the property that increases the offering price by $100. Upor a motion made by Mr. Robinson, seconded by "pis. Auburn and unanimously. carried, the Commission aut orized a $100.00 increase in the offering price for Monroe - Sample Parcel 7 -26. 4 South Bend edevelopment Commission Regular Meeting - March 12, 1982 Mr. Nim z recognized Mr. T. Brooks Brademas, who wanted to present an idea of his to the Commission. Mr. Brademas told the Commission about an idea of his to create a new salvage business. The business would obtain the sal age rights on houses to be demolished by the Neigh- borhood Code Enforcement Office, strip the houses before demolition began and then sell the salvaged materials to people involved in rehabilitation of older homes. Cur - rently the demolition contractors have the salvage rights to the roperties, but they don't take the time to sal- vage, i stead they just demolish. Mr. Brademas has spoken with Mark Rodrigues of the Private Industry Council about staffing the business with CETA clients. He has also spoken with Katherine Barnard, Jeff Gibney and Kathryn Baumgartner. City Attorney Richard Hill commented that although his office night support the concept philosophically, there are som legal problems to be addressed. Mr. Nim z asked the staff to look into this proposal to see if it could be established. Mr. Bra emas stated that he had been doing some research in the area of tax abatement and tax allocation legisla- tion anJ suggested that the Commission should declare tax allocation areas and not give tax abatement in order to minimize the problems brought on the City by the tax freeze. Mr. McMahon commented that the Commission has established allocation areas in all of the newly declared redevel pment areas and was very aware of the impact tax abateme t would have on doing a tax incremental bond issue. 6. NEW BUSIINESS a. Com ission a tion 312 Loan Name val requested for ogram proposal in f the Bureau of 11, Contractor the following Sec- accordance with using. Amount Ulysses Ratchford Aardvark Construction Co. $220.00 202 N. Studebaker Upo Rob Loa i a motion made by Ms. Auburn, seconded by Mr. nson and unanimously carried, the Section 312 i Program proposal was approved. 5 SECTION 312 LOAN PROGRAM PROPOSAL WAS APPROVED FOR 202 NORTH STUDEBAKER South Bend Commission Regular Mee �edevelopment ing - March 12, 1982 6. NEW BUSINESS (continued) b. Com ission a Hom stead /Sec acc rdance wi Hou inq. Name oval 'requested for the following on 312 Loan Program proposal in recommendation of the Bureau of Contractor Amount Eduardo Romero Aardvark Construction Co. $945.00 811 EasL Milton Upoi a motion made by Mr. Robinson,.seconded by Ms. Aub rn and unanimously carried, the Homestead /Section 312 Loan Program proposal was approved. c. Com ission approval requested for the followin ti o 312 Loan contract in accordance with rec men ation of the Bureau of Housing. Name Contractor Am Amount Solomon & Erma Perry Jefferson Builders $10,792.00 617 Sou h Columbia Mrs Baumgartner explained that the first time we awarded this contract to Wilton Construction Company there was a delay in the 312 Loan. Mr. Wilton did not perform in a timely manner with the ten contracts he had with us and he didn't start within the ten -day per od. We notified him that we were taking the con- tra t away from him and would be awarding it to some- one else. We are asking you to rescind the first app oval and reapprove this contract to Jefferson Bui ders. Upon a motion made by Mr. Robinson, seconded by Ms. Auburn and unanimously carried, the Section 312 Loan contract was awarded to Jefferson Builders as recom- mended by the Bureau of Housing. d. Com:ission approval requested for "First Amendment to Cround Lease" with FBT Bancorp, Inc., as it're- lat s to the First Bank Center. Mr. Hill explained that over a year we have had dis ussions with bond counsel for the EDC Bond for HOMESTEAD /SECTION 312 LOAN PROGRAM PROPOSAL WAS APPROVED FOR 811 EAST MILTON STREET SECTION 312 LOAN CONTRACT WAS APPROVED FOR 617 SOUTH COLUMBIA STREET South Bend Redevelopment Commission Regular Me ting - March 12, 1982 6. NEW BUSINESS (continued) d. continued... the bank portion of the 1st Source Center, certain proposed amendments to the ground lease. We ini- tially agreed to most of those proposed amendments but did have some serious problems in the area of default and termination upon default. Kevin and I reviewed this and Kevin redrafted some of the lan- gualge. The first two amendments pertain to approving and consenting to certain mortgage documents between the l.st Source Center limited partnership and the National Bank of Detroit, which under the EDC Bond has entered into an agreement with the City to re- ceive bond proceeds and then apply them accordingly. Als ,there is a further agreement that the mortgage which will be held by that bank is a mortgage under the terms of the ground lease. The second major area would address the definition of mortgagee under the ground lease and that would define mortgagee to include the National Bank of Detroit in addition to Aetna Casualty Company, Nationwide Insurance, and any other purchaser of the bono should there be a foreclosure purchaser. The next amendment would acknowledge that FBT Bancorp is publicly held corporation and therefore cannot con rol the transfer of its shares. Iten 5 would be consenting to a number of actions that have already taken place, including the sale and conveyance of the bank to the First Bank Limited Partnership. This was consented to through an assign- ment some time ago by the Redevelopment Commission. We ire also consenting to the lease by the partnership bac< to the bank and -the possible.resale and reconvey- anc of certain things that are referred to in the lea ;e between the First Bank Limited Partnership and the bank itself. The pri be thi one of next item would be agreeing with the purchase ;e as referred to in the ground lease that will .or the value of the property alone. Once again is no change, but there was some confusion and language in the gound lease that might give some - the impression that it would include the value :he improvements on the property. South Bend Redevelopment Commission Regular Meeting - March 12, 1982 6. NEW 3USJINESS (continued) d. conftinued... The next item states the lease has commenced and that the e has been a transfer of possession. The following item would be a part that as of this date Fir: in any of the key areas, that str ction when required, that any of the non - discriminatory the are not currently nor do pro erty for any purposes not Urb n Renewal Plan. certification on our 3t Bank is not in default they have commenced con - they have not violated clauses of the lease and they intend to use the permitted under the The last major item is a clarification of defaults. The -e is an operating agreement that was entered into in addition to the lease agreement, and that mainten- anca and operation agreement does make reference to certain defaults that could occur. These would not be efaults that would give rise to redevelopment terminating the lease, so we have essentially defined those types of things that would give rise to termina- tion of the lease, such as non - payment under the terms of the lease and made the distinction between those items that would give us a legal cause of action for rei bursement but are not serious enough yet to re- qui e that we would terminate the whole lease arrange- men . The last item would be just a statement that there wou d be no other amendments without the approval of the mortgagee, Detroit National Bank. I would em- pha is that other than the clarification of the de- faults that most of these tend to be assurances or commitments that First Bank, as of this date, is in compliance with the terms of the lease, for what that ground lease was intended to require of First Bank. I might also add that I do believe that these ameiidments should be submitted to HUD for their app oval. I don't think that they will find anything con t ained in the amendments to be objectionable. Upo Rob to sub a motion made by Ms. Auburn, seconded by Mr. nson and unanimously carried, the First Amendment round Lease with FBT Bancorp, Inc. was approved, ect to approval by HUD. FIRST AMENDMENT TO GROUND LEASE WITH FBT BANCORP, INC. WAS APPROVED, SUB - JECT TO APPROVAL BY HUD South Bend Commission Regular Mee �edevelopment ing March 12, 1932 6. NEW BUSINESS (continued) e. Commission approval requested to enter into a lease witi Albert Meilstrup 260:00 per month, on Par els 14-21,114-22 and 14 -23 in the Nonroe- Sample f. R ent Area. Mr. McMahon explained that this is a proposed lease agr ement with Mr. Meilstrup for a piece of property that we purchased from him. He currently operates a t uck service maintenance area in the building. The rent is based on one per cent of the money that we actually deposited in court because we acquired this building through condemnation. It is a two- month lease, he has agreed that he will vacate the premises by the end of April. He is still looking for a new location. Upoi a motion made by Mr. Robinson, seconded by Ms. Aub rn and unanimously carried, the lease with Alb rt Meilstrup in the amount of $260.00 per month was approved. ission approval requested to enter into a lease witii Burkhart Advertising, Inc., for 33.33 per month, on Parcel 2 -11 in the East Bank Developme nt Area. COPIMISSION APPROVED LEASE WITH ALBERT P•1EILSTRUP FOR Mr. McMahon stated that this is a lease with Burk - har Advertising for $33.33 per month to have a bil board on a piece of property that was acquired. The property has been acquired through condemnation, it is located.next to Batteast Construction Company, and the lease amount of $33.33 a month is exactly wha they were paying previously. Upon a motion made by Mr. Robinson, seconded by Hs. Auburn and unanimously carried, the lease with Burkhart Advertising, Inc. in the amount of $33.33 per month was approved. ission approval requested for Resolution No. approving tne Tair mare re -use value o and - 3arnpie ueveiopmenz Hrea. E PARCELS 14 -21, 14 -22 AND 14 -23 IN THE MONROE- SAMPLE DE- VELOPMENT AREA COMMISSION APPROVED LEASE WITH BURKHART AD- VERTISING, INC. FOR PARCEL 2 -11 IN THE EAST BANK DEVELOPMENT AREA South Bend Commiss ion Regular Mee �edevelopment ing - March 12, 1982 6. NEW BUSINESS (continued) g. continued... Mr. McMahon explained that Resolution No. 656 approves the fair re -use value of Disposition Parcel 15 in the Mon oe- Sample area. Upo a motion made by Ms. Auburn, seconded by.Mr. RESOLUTION NO. 656 WAS Nim z and carried, Resolution No. 656 was approved. APPROVED Mr. Robinson voted against the resolution. h. Commission authorization requested to of Intended Sale of Disposition Parce Mon oe -Sam le Development Area, with to e March 19 and 26, 1982, and rece at 0:00 a.m, on April 6, 1982. ublish Notice No. 15 in the blication dat t of bids to Mr. McMahon stated that this item authorizes legal pub ication offering Disposition Parcel 15 for sale. Ms. Auburn stated that she has asked the Redevelop- ment staff to put together some information concern- ing wage requirements, wage rates, and how this had beei handled in the past. Mr. McMahon explained that when the Department pays for construction or demolition we require that current waga rates be paid on the project. There is no HUD re- qui ement that prevailing wage rates be paid by the dev topers of property we sell, and Mr. Robinson has ask ad the Commission to consider adopting a local policy requiring all developers to pay area wage rat as when we sell them land. Because this would aff ct the requirements in the bid packet, perhaps we 3hould change the advertising dates for Parcel 15 until this issue is resolved. Mr.�Nimtz directed that this item be tabled and placed on he agenda for the next meeting. i. Setlfirst meeting date in April Mrs. Kolata explained that the first regular meeting dat2 in April would be Good Friday, a day on which Cit offices will be closed. After discussion, the April meeting dates were set for April 12 and 23. 1.0 MEETING DATES IN APRIL SET FOR THE 12TH AND 23RD. South Bend edevelopment Commission Regular Meeting - March 12, 1982 7. PROGRES$ REPORTS There Ire no additional progress reports to present to the ommission. 8. NEXT COMMISSION MEETING The nex regularly scheduled South Bend Redevelopment Commiss on meeting will be held on March 26, 1982 at 10:00 a m. 9. ADJOUR There being no further information to come before the Commission, Mr. Robinson made a motion that the meet- ing be adjourned. Ms. Auburn seconded the motion and it was unanimously carried. The meeting was ad- journed at 11 :13 a.m. ,�Pres 11 c M. NEXT COMMISSION MEETING ADJOURNMENT n, Executive Director