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HomeMy WebLinkAboutRM 04-08-83April 8, 198 10:00 a.m. Presiding Of 1. ROLL Members Legal Communi Bureau News Me Guests: 2. APPROVAL SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING Mr. F. Jay Nimtz President 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Mr. F. Jay Nimtz, President Mr. Lloyd E. Robinson, Vice President Mr. A. Peter Donaldson, Secretary Ms. Paula N. Auburn, Assistant Secretary Mr. Roman J. Piasecki, Member: Mrs. Eugenia S. Schwartz Staff: Mrs. Ann Kolata, Executive Deputy Director Mr. Kevin C. Horton, Deputy Director Mr. Herman Lee, Administrative Assistant Ms. Denise Sullivan, Executive Secretary Ms. Fines V. Mosby, Secretary Development Staff: Housing Staff: OF MINUTES Ms. Colleen Rosenfeld, Director Ms. Janet S. Holston, Director Ms. Jeanne Derbeck, South Bend Tribune Mr. M.A. Kusnierek Mr. Ernest Szarwark Mr. Neil Gilbert, Southold Heritage Ms. Barbara Noser, Southold Heritage Mr. Charles Jurtin Mr. Thomas Gibson Mrs. Glenda Rae Hernandez Mr. John Phair Upon a tion made by Mr. Robinson, seconded by Mr. P asecki and unanimously carried, the minutes f Friday, March 25, 1983 were approved. 3. APPROVALIOF CLAIMS Upon a motion made by Mr. Robinson, seconded by Mr. Dona dson and unanimously carried, the claims previous y signed and dated March 30 and April 6, 1983 were formally approved and the checks were ordered to be released. a THE MINUTES OF THE REGULAR MEETING OF MARCH 25, 1983 WERE APPROVED CLAIMS WERE FORMALLY APPROVED AND CHECKS DATED MARCH 30 AND APRIL 6, 1983 WERE ORDERED TO BE RELEASED South Bend Redevelopment Commission Regular Meet ng - April 8, 1983 3. APPROVALIOF CLAIMS (Cont.) U DISTRICT CAPITAL FUND '72 Mathews- uru cker - Anella, Inc. Crescent Electric Supply Abstract Co. of St Joe County CcmunitV Development P.E.A. Ri 66 City of South Bend City of Sbuth Bend Slidecra t Laboratories Bureau of National Affairs, Inc. Business Systems, Inc. Communit7 Development Ralph D. Lauver Ronald E Gettel Indiana Bell Telephone Payroll: 3 -19 thru 4 -1 -83 4. COMMUNI $ 308.12 170.00 TOTAL $ 478.12 $ 190.00 486,059.01 TOTAL $486,249.01 $ 77.09 24.20 14.60 432.00 209.04 15,210.75 650.00 650.00 562.23 10,083.93 TOTAL $27,913.84 GRAND TOTAL $514,640.97 Mr. Nimtz stated that it has been rumored that Kawneer Company, Inc., had notified the employees of South Bend Screw Products that South Bend Screw Products was closing. Mr. Nimtz reported that there is some possibility that the company is staying. Commission Auburn and he met with representatives of Kawneer and South Bend Screw Products this morning and explored alternative options available to South Bend Screw Products to enable them to continue busi- ness operations in South Bend. He recommended to the Commission the following offer: (1) That Kawneer Company, Inc., be allowed to keep South Bend Screw Products at its present location until July 31, 1984 at the sinne monthly rental and the same terms under the pres t lease, that if South Bend Screw relocates within the City of South Bend by July 31, 1984 all rental piyrnents will be reimbursed to Kawneer Com- pany, Inc.; (2) that South Bend Screw Products -2- South Bend R +development Commission Regular Meet ng - April 8, 1983 4. COMMUNICATIONS (Cont.) facility will have uninterrupted utility service and access for employees and trucking operations, equivaleilt to the current access. Mr. Nimtz made it clear that there is no assurance of acceptance of this by Kawneer and its parent company, AMAX, but we d a very friendly and open discussion and this was Mr. Nimtz's recommendation. Ms. Auburn stated that at the meeting they really talked ut keeping South Bend Screw Products in operation and explored a number of different options. It was a friendly discussion in an effort to help that business in whatever way we can legally do so. One of their concerns was the current economic con- ditions end what we are prepared to offer them to address their concerns with that and gives than time until the economy gets into an upturn. It was also pointed out to them the generous relocation package that has been put together and the economic benefits that are inherent in that package and the long term economic benefits to South Bend Screw Products if they do decidE to locate inside the city limits. It's a very difficult situation because you don't always know what the economy is going to be and we don't make decisions for any particular business. But we do reconwend that the Commission approve what they did talk 4bout. A motion was made by Ms. Auburn and seconded by Mr. Robinson that Mr. Nimtz be authorized to make the following offer to Kawneer Company, Inc: 1.) That Kawneer Company, Inc., be allowed to keep Sout,i Bend Screw Products at its present location untiL July 31, 1984 at the same monthly rental amou,it with the same terms, that if South Bend Screq Products relocates within the City of South Bend by July 31, 1984 all rental payments will be reimpursed to Kawneer Company, Inc. 2.) The South Bend Screw Products facility will have unin errupted utility service and access for em- ployees and trucking operations, equivalent to the current access. Mr. Piase ki asked if extending the lease for one year to July H, 1984 would fit in with the East Race Pro- ject. Mr. Nimtz explained that he had talked with the City Engineer and they are agreeable to this arrange- ment. Mrs. Kolata stated that the Industrial Foundation has written Kawneer and offered to hold the site in the Airport Industrial Park for a year. Mr. Piasecki asked if we were bailing out South Bend Screw Products and Ms. Utz South Bend Regular Me 4. relopment Commission April 8, 1983 ( font. ) Auburn responded that we are not bailing them out, that we are making every effort to make it attractive and viable to stay open as an ongoing business but from a public policy starfdpoint we can't say that we are willing to pay any price to do th t. Mrs. Schwartz stated that Mr. Piasecki raises a good point for the Commission from the standpoint of what the Commission is legally able to do. The monies tliat were paid for the purchase of the land from South Bend Screw Products are obviously under the guidelines that we operate under as a Redevelop- ment C ssion using federal funds and no monies were expended that are not legally allowed to be expended based on reasonable appraisals and consid- ering all circumstances. The rental arrangement that Sou Bend Screw Products would be operating under has, the provisions for payback which the Com- mission has used in other circumstances in order to facilitate relocation in the City of South Bend. What is proposed today will not result in incurring any cost not permissible to the Commission. As far as the continuation of the utilities and so forth we have been able to arrange matters so that there will not be any expenditures of cost that would not be othen7ise expended by the Commission. Mrs. Kol to commented that everyone in the community has been working diligently to try to keep this busi- ness in South Bend. Mr. Nimt called the question and the motion passed unanimou ly. 5. OLD There wad no old business. 6. NEW a. for a contract with related to Redevelo CD Mrs. Kolata explained that the contract with Commimity Development is related to the Redevel- opment Administration budget. Earlier this year a contract was passed with Community Devel- opment for the first three months of this year. This contract would cover administrative costs from April l until December 31, 1983 and it is in e amount of $297,500.00. MAC MOTION WAS MADE TO MAKE AN OFFER TO THE KAWNEER COMPANY, INC., REGARDING SOUTH BEND SCREW PRODUCTS AND THE EAST RACE PROJECT THERE WAS NO OLD BUSINESS South BE Regular 6. NEW a. C. Q -nd Redevelopment Commission Meeting - April 8, 1983 BUSINESS (Cont.) Continued... Upon a motion made by Ms. Auburn, seconded by . Robinson and unanimously carried, the contract with Community Development (CD 83 -601) was approved. Commission approval requested for a contract with Community Development related to the Monroe Park Development Activity (CD 83 -602). Kolata stated that this contract relates to Mrs. the Monroe Park Activity and is in the amount of $75,000 to finish out the final acquisition and relocation payments. Upon a motion made by Mr. Donaldson, seconded by ns. Auburn and unanimously carried, the con- tract with Community Development (CD 83 -602) was approved. Commission approval requested for a' contract with Community Development related to the East Bank Developmen t Activity (CD 83 -604). Kolata explained that this contract is for Mrs. the East Bank area for acquisition, relocation, clearance, public improvements and planning actilrities in the amount of $390,000. Upon a motion made by Ms. Auburn, seconded by Mr. Robinson and unanimously carried, the con- tract. with Community Development (CD 83 -604) was approved. Commission approval requested for a contract with Community Development related to the Stude- baker Industrial Corridor Activity (CD 83 -605). Mrs. Kolata stated that this contract relates to the Studebaker Industrial Corridor in the amount of $ 50,000 and allows for some public improve- ment , clean up of existing conditions and some marketing activities. Mr. Robinson questioned whether the clean up would be on private or public property. Mrs. Kolata responded that it would have to be in the public right of way, it would not be on privately owned property. What we anticipate on the public improvements is working along with -5- MOTION WAS MADE TO APPROVE; A CONTRACT WITH COMMUNITY DEVELOPMENT (CD 83 -601) MOTION WAS MADE TO APPROVE A CONTRACT WITH COMMUNITY DEVELOPMENT (CD 83 -602) MO`T'ION WAS MADE TO APPROVE A CONTRACT WITH COMMUNITY DEVELOPMENT (CD 83 -604) South Bend Rodeveloixnent Commission Regular Meeting - April 8, 1983 6. NEW BUSNESS (Cont.) d. Continued... private investment in the area, such as the Standard Mechanical building. We will do some public improvements on the curbs and sidewalks along that building and other pri- vate investments that have been made in the area Upon a motion made by Mr. Robinson, seconded by . Donaldson and unanimously carried, the con act with Community Development (CD 83- 605) was approved. e. Commission approval requested for a c with Communit tral Business (CD 3 -607). ent related to the Cen- Development Activity Mrs. Kolata explained that this contract is for the Central Business District Development Activity in the amount of $290,000. This in- cludes public improvements, landscaping, tech- nical. assistance, marketing and technical and finaicial assistance. Upon a motion made by Ms. Auburn, seconded by Mr. Robinson and unanimously carried, the con- tract with Community Development (CD 83 -607) was z ipproved. f. gmn Assion approval r ested for the following bid d loan in connection with the Rehabilitation Loan l Program. Name - I - Contractor Bid Loan Nannie th Jurtin's Const. Co. $12,551 $13,500 1137 W. 4efferson Mrs. Kolata stated that the next two items should be considered together, and then we can vote on them separately. We have a loan request related to Nannie Smith, at 1137 W. Jefferson, in the amount of $13,500. The loan is based on a bid from Jurtin's Construc- tion Company which was the low bidder, in the amount of $12,551.00. The difference between the bid amount and the loan amount involves a cont ngency item and some actual costs related to title examination and so on. MOTION WAS MADE TO APPROVE A CONTRACT WITH COMMUNITY DEVELOPMENT (CD 83 -605) MOTION WAS MADE TO APPROVE A CONTRACT WITH COMMUNITY DEVELOPMENT (CD 83 -607) South Bend R development Commission Regular Meet ng - April 8, 1983 6. NEW BUSINESS (Cont.) f. Continued... a Mr. obinson asked if the increase in the loan put any problems upon Nannie Smith. Ms. olston replied that Nannie Smith still meet our guidelines for repayment of the loan Upon a motion made by Mr. Robinson, seconded by . Donaldson and unanimously carried, the con act for Nannie Smith, 1137 W. Jefferson, in t1le amount of $12,551.00 was awarded,to Jurt n Construction Company. Upon a motion made by Mr. Robinson, seconded by . Auburn and unanimously carried, a loan in Ane e amount of $13,500.00 was approved for Na Smith, 1137 W. Jefferson. ratification and approval for 4 proposal and loan in connection with the Name wvners Emergency Loan Program in accordance the recommendation from the Bureau of Housing. Contractor Bid Loan Hortense Curtindolph Charles Brown $1,170 $1,177 1609 W. ngley Maintenance Co. Ms. Holston explained that this loan is for re- roofing a house where the roof could not be patched and that the work has already been com- plet d. Upon a motion made by Mr. Donaldson, seconded by Mr. Robinson and unanimously carried, a contract was awarded to Charles Brown Maintenance Company in the amount of $1,170.00 for a house at 1609 W. nalev. Upon a motion made by Mr. Donaldson, seconded by Mr. Robinson and unanimously carried, a loan in the zmount of $1,177.00 was approved for Hortense Curt'ndolph. h. g2mission approval requested for a tax abatement requ st relative to an area comnonly referred to MOTION WAS MADE TO AWARD CONTRACT FOR NANNIE SMITH, 1137 W. JEFFERSON, IN THE AMOUNT OF $12,551 TO JURTIN CONSTRUCTION COMPANY MOTION WAS MADE TO APPROVE A LOAN FOR $13,500 FOR NANNIE SMITH, 1137 W. JEFFERSON MOTION WAS MADE TO AWARD A CONTRACT FOR $1,170 FOR HORTENSE CURTINDOLPH, 1609 W. LONGLEY, TO CHALRES BROWN MAINTENANCE COMPANY MOTION WAS MADE TO APPROVE A LOAN FOR $1,177 FOR HORTEN CURTINDOLPH, 1609 W. LONGLEY as 2015 Western Avenue. This item was tabled until the meeting of April 22, TAX ABATEMENT FOR 2015 1983 WESTERN AVENUE WAS TABLED UNTIL MEETING OF APRIL 22, 1983 South Bend R evelopment Commission Regular Meet ng - April 8, 1983 6. NEW BUS UESS (Cont . ) i. C ssion approval requested for a tax abate- ment request relative to an area commonly re- ferred to as 4600 Western Avenue. Mr. Lee gave the staff report. The abatement request is relative to an involuntary relocation of Whiteford NationaLease, Inc., and Whiteford Truck Lines which are currently located at 2020 W. Szimple Street. These concerns must relocate immediately to make way for the Olive - Sample Over- pass The petitioners, Mr. and Mrs. Ronald W. Whiteford, have interests in each of the elements of the corporation. This petition involves the relocation of Whiteford, Inc., from West Sample Stre t to 4600 Western Avenue. This particular location is approximately four blocks west of an existing tax abatement impact area. The project involves construction of a 45,000 square foot facility and will save approximately 50 jobs with a potential increase of employment of three new jobs annually. The total cost of this project is estimated at approximately $900,000.00 and this would be one phase of the project, the other phas was previously tabled. Mr. zawark, attorney for the petitioner, intro- duced Mr. Mery Kusnierek, senior vice president and treasurer of Whiteford. Whiteford is relo- cating from its present area on Sample Street because of the overpass. The site is a parcel of r al estate on which nothing is located. As Mr. Lee stated, this is part of a two part move, the office building and some of the leasing facilities will be moved somewhere else, also on t1ie west side of South Bend. They are looking at two parcels, the first parcel is on ".Olive..Street a block north of Western. They are also consid- erincr the former A &P building on Western. Right now Whiteford is in negotiations and expect to make a decision by next week. Whiteford is in- tere ted in staying in the community and will empl y a number of people from the community. Because of their size and type of operation ther aren't a lot of places they can relocate. Mr. Szawark hoped the Commission would approve the abatement. Mr. obinson asked if Whiteford would still go ahead with the project if they did not get tax abatEment. South Bend R evelopment Commission Regular Meet ng - April 8, 1983 6. NEW BUSII}ESS (Cont.) 1. uonLinuea... Mr. zawark responded that tax abatement is part of the pricing of the project and if they do not get tax abatement it would be a material increase in the cost of relocation. They would then have to take another look at costs and pos- sibly go somewhere else. There have been a couple Of other places that they have looked at, not in- side the County, but basically Whiteford wants to stay here where its employees are located. They hoped they are not put in that position. Mr. Robinson questioned whether Whiteford would own or lease the building. Mr. Kusnierek answered that Mr. and Mrs. Whiteford would own the building and lease it to the Corporation. Mrs. Kolata explained that many of the tax abate- ments that have been approved have gone through similar types of situations, where the property is amed by one person and leased to the business. Mr, Robinson stated that he realizes that the property has been vacant for a period of years but imtil the economy took a downturn, the prop- erty was being developed and the neighborhood really isn't that bad. He questioned whether the neiglborhood was deteriorated to the point that tax abatement would be a recommended direction to go. He agreed it has been under utilized, but Imows that there has been a Whiteford trailer sitting out there for quite a period of time now, and they have had the opportunity in the past to develop it and haven't done so. He was not con- vinced that the area should be entitled to tax Mrs. Kolata pointed out that the Common Council's directions to the Commission is that we not look at the entire area but that we look at the parcel in question and that is an undeveloped piece of Ms. Auburn asked Mr. Lee if he followed the legally constituted guidelines on what determines the tax abatEment when writing the staff report. Mr. Lee responded that he looked at the project as a whole, with both locations being considered. This particular site is not in a tax abatement impact area but it is very close to one. If we were considering this area alone, he would think South Bend Revelopment Commission Regular Meet ng - April 8, 1983 6. NEW BUSIIMS (Cont.) i. Continued... it w�uld be debatable whether or not it fits the riteria for tax abatement. Mr. tiasecki questioned why Whiteford waited unti the last moment to find a new location. Mr. Kusnierek answered that back in 1979 they had im original plan and they went for an in- dustrial revenue bond and had the financing in place. They had"cbntracts from two banks to carry the revenue bond and all of a sudden the -oof went off the interest market and one national bank and one local bank pulled the financing out of the project. Now they look at t1ie price of revenue bonds, and they find that revenue bond financing is no longer a viable alternative. It's true we owned the property, but they came from a 71% mortgage and they are looking at 132% mortgage. They are ooking at the fact that they have not been able to raise prices for the last two year in the transportation industry, prices are n fact not only being held but they:are being slas ed. If we want a viable business, they have to look under every corner, internally and ext ally, to cover themselves. Ms. uburn asked if Whiteford is going to build on that land without the tax abatement. Mr. usnierek said that would need to be re- cons'dered. He could not say yes or no. Their prof ctions were based on the factor that would incltide tax abatement. Ms. Auburn asked how the tax rate on that Western Aven e property compares with what they are cur- rent y paying for taxes. Mr. usnierek stated the current taxes are about half of the new taxes. Upon a motion made by Ms. Auburn, seconded by Mr. Diasecki and carried, the report was sent to tie Common Council without recommendation. Mr. Robinson and Mr. Donaldson voted against the i notion. -10- MOTION WAS MADE: TO REFER A TAX ABATEMENT FOR 4600 WESTERN AVENUE TO THE COM- MON COUNCIL WITHOUT RECOM- MENDATION South Bend Regular Me, 6. NEW elopment Commission - April 8, 1983 (Cont.) j. Staff recommendation regarding bid opening of March 7, 1983 for Disposition Parcels 4 -28, 4 -29 4 -30 and part of 4 -3 and the vacated east -west alley in the Central Downtown Urban Renewal Area Mrs. Kolata asked that this item be tabled. We have had a request by those who have submitted bids to make an appearance before the Commission and we ask that we be allowed the time to set up that appearance and to discuss this matter further. Upon a motion made by Mr. Robinson, seconded by Mr. ponaldson and unanimously carried, this item was tabled. 7. PROGRESSIREPORTS There we#e no progress reports. Mrs. Hernandez asked about the $66,000 that was with- drawn frcm the budget that had been budgeted for home improvement loans in the Monroe Park area. She asked if this means that nothing is being done for the resi- dential areas. MOTION WAS MADE TO TABLE THE STAFF REC01+1ENDATION REGARDING BID OPENING OF MARCH 7, 1983 FOR DISPOS- ITION PARCELS 4 -28, 4 -29, 4 -30 AND PART OF 4 -3 AND THE EAST -WEST ALLEY IN THE CENTRAL DOWNTOWN URBAN RE- NEWAL AREA (INDIANA R -66) Mrs. Kol to stated she was not sure which $66,000 she THERE WERE NO PROGRESS was referring to. She stated we have a large amount, REPORTS about $500,000, that is set aside for housing programs and the nroe Sample Rehab Loan Program is continued as one o those programs. 8. NEXT CU,"ISSION MEETING a The next regularly scheduled meeting will be held Friday, 4pril 22, 1983 at 10:00 a.m. There being no further business to come before the Commission Mr. Robinson made a motion that the meeting be adjo ned. Mr. Donaldson seconded the motion and it was unanimously carried. The meeting was adjourned _1'1- NEXT COMMISSION MEETING Jon /A. Hunt, Executive