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HomeMy WebLinkAboutRM 04-27-84April 27, 11. 10:00 a.m. Presiding Oj 1. ROLL CA] Members Members Legal Cc Redevelc Bureau c News Mec Others: 2. APPROVAI 3. SOUTH BEND REDEVELOPMENT COMMISSION REGULAR SCHEDULED MEETING 84 1200 County -City Building 227 W. Jefferson Boulevard ficer: Ms. Paula N. Auburn South Bend, Indiana 46601 Vice President Present: Ms. Paula N. Auburn, Vice President Mr. A. Peter Donaldson, Secretary Mr. Roman J. Piasecki, Assistant Secretary Mr. Michael Donoho, Member Absent: Mr. F. Jay Nimtz, President Ms. Eugenia Schwartz tent Staff: Mr. Mrs Mr. Ms. Ms. Ms. Housing Staff: Ms. Ms. Mr. OF MINUTES Jon R. Hunt, Executive Director Ann Kolata, Executive Deputy Director Herman Lee, Econ. Development Specialist Hedy Robinson, Econ. Dev. Specialist Denise Sullivan, Office Manager Fines Mosby, Secretary Janet Holston, Director Jeanne Derbeck, South Bend Tribune Mark Peterson, WXMG Radio Ms. Glenda Rae Hernandez Mr. Robert Batteast Mr. Harold Slutsky Mrs. Irene Panzica Mr. Thomas Panzica Upon a motion made by Mr. Piasecki, seconded by Mr. Donaldson and unanimously carried, the minutes of the Regular Meeting of Friday, April 13, 1984 were approved. Upon a motion made by Mr. Donaldson, seconded by Mr, Donoho and unanimously carried, the Commission formally approved the claims submitted April 19 and April 26, 1984, and ordered checks dated April 25 and May 2, 1984 to be r leased. APPROVAL OF THE MINUTES OF THE REGULAR MEETING OF FRIDAY, APRIL 13, 1984 APPROVAL OF CLAIMS SUBMITTED APRIL 19 AND APRIL 26, 1984 AND ORDER CHECKS DATED APRIL 25 AND MAY 2, 1984 TO BE RELEASED South Bend Redevelopment Commission Regular Mee ing - April 27, 1984 3. APPROVAL OF CLAIMS (Cont.) URBAN EVELOPMENT Redevelopment District Capital $10,000.00 Total $10,000.00 REDEVELQPMENT DISTRICT CAPITAL City Awing of South Bend EAST BAT T PROJECT First Auto Hurtt -K prick & Assoc. Community Development F.H.L. Realty Coffee Time MONROE Mathew P.E.A. 1-66 PROJECT Total $ 805.00 $ 3,755.00 2,561.00 15,805.00 Total $22,121.00 la, Inc. $ 218.75 Total $ 218.75 Ralph D Lauver First Auto Lease Makiels i, Inc. St. Jos ph Bankcard Coffee Time Services Griffon Book Store & Aardvark Construction Co. Community Development Bork Nurseries, Inc. South Bend Housing Authority Federal Express Corp. South Bend Drafting Supply Makiels i, Inc. Petroleum Traders Corp. Eugenia Schwartz Clyde E. Williams & Assoc. Clyde E . Williams & Assoc. Triangl Drafting Supply $ 450.00 221.13 146.32 188.38 24.70 7,066.50 3,265.00 2,008.97 90.00 24.00 63.00 25.00 26.42 29.20 340.00 225.00 57.60 -2- South Bend l Regular Mee* 3. APPROVA] General General Payroll 4. COMMUNI( elopment Commission - April 27, 1984 OF CLAIMS (Cont.) Fund 122.39 Fund 238.89 3 -31 thru 4 -13 -84 10,104.83 Total $24,717.33 Grand Total $57,862.08 Mr. Hun read the following letter from Joseph ZaVisca General Manager, South Bend Public Transportation Corporation, and asked that it be entered into the record.. April 24, 1984 Mr. Jon Hunt, Executive Director Departm nt of Redevelopment County- ity Building South B nd, Indiana 46601 Dear J On behalf of the TRANSPO Board of Directors, I wish to indicate our willingness to purchase 21 feet of the service drive immediately to the eas of our property, conditioned upon our dedication of such land as a public right-of-way. Additionally, TRANSPO would dedicate the 28 foot strip across the northern border of its site, together with the requisi e triangular area at the northeast corner which is necessary to round the contemp ated public service drive. I trust that this adequately conveys the intent of our Board. If I can provide any further information on this subject, please let me know. Yours truly, Joseph ZaVisca General Manager Mr. Hunt stated that this request would be c disuss d later during the meeting. -3- MR. HUNT READ A LETTER FROM JOSEPH ZAVISCA, GENERAL MANAGER, SOUTH BEND PUBLIC TRANSPORTATION CORPORATION South Bend ]Redevelopment Commission Regular Meeting - April 27, 1984 5. OLD BUSINESS There w s no old business. 6. NEW BUSINESS a. Comftission approval requested for and grants in connection with the Re it Program in accordance with recommendation from the Bureau of Ste la Lee 713 N. Allen S Contractor Sid's Plumbing & Heating NO OLD BUSINESS $ 705.00 Eu4tte Franklin Jurtin's Construction Company $1,500.00 717 E. Dubail Elsie Kovachevich Braunsdorf, Inc. 826 Diamond Avenue Upom a motion made by Mr. Donaldson, seconded by Mr. Donoho and unanimously carried, proposals and grants in connection with the Emergency Repair Program were approved for Stella Lee, 713 N. Allen, in the amount of $70-5.00; Eulette Franklin, 717 E. Dubail, in the amount of $1,500.00; and Elsie Kov chevich, 826 Diamond Avenue, in the amount of 1480.00. Conmission approval requested fora proposal in connection with the Section 312 Loan Pr ram in accordance with the recommendation fron.the Bureau of Housing. Contractor Bea rice Milton Cannady Tree Service 448 S. Chicago Ms. Holston explained that the Section 312 Loan Program includes certain property improvements that would not necessarily be included in any of the other Bureau of Housing programs. In this case there was additional mon y left over in the loan after the repairs were made to the home, and the hcmeowner regiested that scene trees be removed due to their proximity to the house. -4- COMMISSION APPROVED PROPOSALS'' AND GRANTS IN CONNECTION WITH THE EMERGENCY REPAIR PROGRAM FOR STELLA LEE, 713 N. ALLEN, IN THE AMOUNT OF $705.00; Ef TLF'T'TE FRANKLIN, 717 E. DUBAIL, IN THE AMOUNT OF $1,500.00; AND ELSIE KOVACHEVICH, 826 DIAMOND AVENUE, IN THE AMOUNT OF $480.00 $400.00 South B e Regular 6. NEW to C. nd Redevelopment Commission Meeting - April 27, 1984 BUSINESS (Cont.) Continued... Upon a motion made by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, a proposal in connection with the Section 312 Loan Program was approved for Beatrice Milto 448 S. Chicago, in the amount of $400.00. C 'ssion approval requested for Resolution No. 704 approving an application for Real Property Tax Deduction. Hunt explained that this application for Mr. tax abatement is for property located in a T Increment Financing Area so the Commission must. approve the granting of tax abatement before the petition is sent to the Common Council for final action. Ms. Hedy Robinson explained that the petitioner is Crescent Realty Corporation. They are proposing to construct a building o approximately 12,800 square feet. The estimted cost of construction is $492,000. The use will be retail and wholesale for electrical supplies, and the project will create three new permanent jobs and will maintain twelve existing permanent fulltime jobs. Upon a motion made by Mr. Piasecki, seconded by Dir. Donaldson and unanimously carried, th Coimtission approved Resolution No., 704 approving an application for Real Property T. Deduction. CaimLission approval requested for Resolution No. 705 authorizing the execution of Quit-Claim Deed for the transfer of title to certain land in the Central Downtown Urban Ren wal Area to the Board of the South Bend Transportation Corporation. Kolata explained that Redevelopment is Mrs selling 21' feet of the existing service dri, to TRANSPO for $1.00. TRANSPO would then inmiediately dedicate that 21' feet of land along with a strip of land on the northern part. of their property to the City. The -5- COMMISSION APPROVED A PROPOSAL IN CONNECTION WITH THE SECTION 312 LOAN PROGRAM n, FOR BEATRICE MILTON, 448 S. CHICAGO, IN THE AMOUNT OF $400.00 ax COMMISSION APPROVED RESOLUTION NO. 704 APPROV- ING AN APPLICATION FOR REAL ax PROPERTY TAX DEDUCTION ve South BE Regular M-PENIMUM rep e. f. end Redevelognent Ccn-mission Meeting - April 27, 1984 BUS NESS (Cont.) Continued... rea on for selling the property to TRANSPO and their dedicating it back to the City is if this property is ever vacated as a public right-of-way, all of it would revert to TRAIISPO at that time and not be split by adjoining property owners. There would be phy ical constraints on TRANSPO's project if the service drive were ever to be closed off and not available for TRANSPO's use. Upon a motion made by Mr. Donaldson, seconded by Mr. Piasecki and unanimously carried, Resolution No. 705 authorizing the execution of it -Claim Deed for the transfer of title to certain land in the Central Downtown Urban Ren wal Area to the Board of the South Bend Transportation Corporation was approved. CormLission approval regLiested for Resolution No. 706 authorizing a joint resolution between the Redevelopment Commission and the Board of Pub is Works relating to the Central Downtown Urban Renewal Area. Schwartz explained that this resolution Ms. would authorize the Board of Public Works to be responsible for building and maintaining the service drive relating to the TRANSPO and TCU projects. The joint resolution provides cert.ain assurances to TRANSPO and TCU concerning the continued operation of the se ice drive. Upon a motion made by Mr. Donoho, seconded by Mr. Donaldson and unanimously carried, Resolution No. 706 authorizing a joint resolution between the Redevelopment CormLission and the Board of Public Works relating to the Central Downtown Urban Renewal Area was approved. CormLission authorization requested to petition for vacation of part of a North -South alley in the Central Downtown Urban Renewal Area. Mrs. Kolata explained that authorization was reqLested to vacate a 14' alley in the -6- COMMISSION APPROVED RESOLUTION NO. 705 AUTHOR- IZING THE EXECUTION OF QUIT -CLAIM DEED FOR THE TRANSFER OF TITLE TO CERTAIN LAND IN THE CENTRAL DOWNTOWN URBAN RENEWAL AREA TO THE BOARD OF THE SOUTH BEND TRANSPORTATION CORPORATION COMMISSION APPROVED RESOLUTION NO. 706 AUTHOR- IZING A JOINT RESOLUTION BETWEEN THE REDEVELOPMENT COMMISSION AND THE BOARD OF PUBLIC WORKS RELATING TO THE CENTRAL DOWNTOWN URBAN RENEWAL AREA South Bend Regular Me 6. NEW BU f. Co: elopment Commission - April 27, 1984 ( font . ) northern end of this property for further negotiations with the Teacher's Credit Union. She explained that all of this works together to provide access to TRANSPO, TCU and any other future developments in this block. Upon a motion made by Mr. Paisecki, seconded by Mr. Donaldson and unanimoulsy carried, authorization was approved to petition for vacation of part of a North -South all v in the Central Downtown Urban Renewal 1 No. 11 and Street in th the west one half of vacated Monroe Sample Develoment Ms. Auburn noted that this was a new item add d to the agenda. Mrs Kolata presented two proposals that were received for Parcel No. 11 and the west one-half of vacated Rush Street in the Monroe Sample Development Area. Mrs. Kolata explained that the Commission was aware of the int rest of two separate bidders, and they wer asked to submit information to the Co ssion by April 16, 1984. The first proposal came in from Panzica Development Company. Panzica Development Company's proposal was submitted at the minimum bid offering price of $17,900. They have proposed to construct a building of approximately 14,400 square feet. The second phase of the project would be to construct an additional 7,680 square feet on to the rear of the building. The second phase would be built when additional space is needed by either of the two tenants. The building would be used for rental space for high tech firms with office space in front and warehouse operations in the back. They propose to break ground in Jun E, 1984, and have occupancy in October. The represented that they have the building 50% leased to a firm moving from another CrG COMMISSION AUTHORIZED TO PETITION FOR VACATION OF PART OF A NORTH -SOUTH ALLEY IN THE CENTRAL DOWNTOWN URBAN RENEWAL AREA South Bend Regular Me elopment Commission - April 27, 1984 6. NEW BUS$NESS (Cont.) g. Continued... loaition within the City bringing six jobs to the area immediately and a total of approximately 28 jobs by the time the building is omplete. The total cost of their project is approximately $445,000. The second proposal was received from the 23 North Partnership. They are proposing to build a 30,000 square foot building that would be leased out to approximately four to six temints. They proposed the building to be used for warehousing facilities and showrooms for contractor supply firms. Construction wou d begin within a six month period with co letion approximately four months after beginning construction. 23 North Partnership bid the minimum bid price of $17,900. They rep esented that they would have approximately 50 jobs when the project is completed. Mr. Hunt stated that the Commission was pleased to have received two proposals from local developers and that they were both good pro ects. The Commission considered these prorosals in executive session yesterday and listened to presentations by each of the developers at that time. He stated that the CoimLission looks at a number of factors when considering a project. These include the pro ect construction schedule, start and corqdetion date, firmness of financing counLitment, whether public assistance is needed in the project or financing, the purchase price, whether tax abatement is requested, the developer's ability to complete the project, project size, type of use, number of ' obs created or retained, the quality of desgn, proposed building occupancy and market fea ibility. Mr. the was f in 1 aunt then gave a brief comparision of both )sals indicating that the Commission felt )roposal from Panzica Development Company Stronger in several areas. Their icing is in place, they indicated they I not seek tax abatement, the Commission the larger landscaped area between the South Bend Regular Me, elopment Commission - April 27, 1984 6. NEW BUS$NESS (Cont.) g. uon-ipinuea... building and the Bronson Street residential araL, and the building is 50% pre - leased for a ten year period. Ms. Auburn noted that representatives from both parties were present to answer any questions the Comission might have. Mr.�Piasecki asked both parties if what was pre ented by the Commission was accurate. Mr. Batteast from 23 North Partnership stated that their construction schedule was based upon the City and State design review process and construction would begin as soon as those processes would be completed. He also stated that 23 North Partnership does have comnitted firAncing to the project. If Industrial Revenue Bonds are available they will apply, but the project is not dependent upon the Mr. Panzica stated that Panzica Development Corporation would like to keep the incentive of tax abatement open to them to make their rents more competitive unless it is absolutely a condition of purchasing the property. He stated that they do have a ccnmitment from a lo ail bank for financing of the project. Mr. Panzica also stated that their project is designed for the possibility of future exiDinsion. Mr. Slutsky fran 23 North Partnership stated that. tax abatement would be a major factor in their proposal. The Commission discussed the issue of tax abatement and whether they should put a restriction on the availability of abatement. The Commission decided not to restrict the availability of tax abatement but Ms. Auburn stated that should the successful bidder cane back to the Commission with a tax abatement reTtest in the future there is no guarantee that it will be granted. South Bend Regular Me 6. NEW BU g. Co. elopment Commission - April 27, 1984 (Cont.) Upon a motion made by Mr. Piasecki, seconded by mr. Donoho and unanimously carried, the Comnission accepted the proposal from Panzica Development Corporation for Parcel No. 11 and the west one -half of vacated Rush Street in the Monroe Sample Development Area and au orized the President and Secretary to exe ute all appropriate documents. Mr. Hun - reported that the official starting date for ` construction of the One Michiana Square roject will be June 30, 1984, assuming all leg lly binding commitments are complete. 8. NEXT COMMISSION MEETING a The ne Regular Meeting of the Commission will be held on Friday, May 11, 1984 at 10:00 a.m. There the G the m carried, a.m. ng no further business to cane before ssion, Mr. Donoho made a motion that ng be adjourned. Mr. Piasecki the motion and it was unanimously The meeting was adjourned at 11:15 COMMISSION ACCEPTED THE PROPOSAL FROM PANZICA DEVELOPMENT COMPANY FOR PARCEL NO. 11 AND THE WEST ONE -HALF OF VACATED RUSH STREET IN THE MONROE SAMPLE DEVELOPMENT AREA AND AUTHORIZED THE PRESIDENT AND SECRETARY TO EXECUTE ALL APPROPRIATE DOCUMENTS" PROGRESS REPORT NEXT COMMISSION MEETING UlWWOW1 Sal i:"kM A Jon R. Hunt, Executive Director -10-