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HomeMy WebLinkAboutRM 05-10-85May 10, 1 . 85 10:00 a.m Presiding Of 1. ROLL 2. Legal News SOUTH BEND REDEVELOPMENT COMMISSION REGULAR SCHEDULED MEETING ficer: Mr. F. Jay Nimtz President 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Present: Mr. F. Jay Nimtz, President Ms. Paula N. Auburn, Vice - President Mr. Roman J. Piasecki, Secretary Mr. Sandy Combs, Member Absent: Mr. Michael Donoho, Assistant Secretary Ms. Eugenia Schwartz lopment Staff: Mr. Jon R. Hunt, Executive Director Mrs. Ann Kolata, Executive Deputy Director Mr. Herman Lee, Econ. Development Specialist Ms. Denise Sullivan, Office Manager of Housing Staff: Ms. Mary Richmond, Project Director edia: Ms. Jeanne Derbeck, South Bend Tribune Mr. Mark Peterson, WZZP Radio Mr. Frank Vellner, WSBT -TV Mr. Gary Seiber, WNDU -TV Mr. John Winey, WNDU -TV Ms. Glenda Rae Hernandez AL OF MINUTES Mr. Ti nt mentioned a couple of minor corre tions that needed to be made in the Upon a motion made by Ms. Auburn, seconded by Mr. P'asecki and unanimously carried, the minutes of the Regular Meeting of Friday, April 26, 1985 were approved as corrected. 0 � s Upon Mr. Pia Commis submit check relea Ms. Alb cla' . OF CLAIMS motion made by Mr. Combs, seconded by secki and unanimously carried, the Sion formally approved the claims ted May 2 and May 9, 1985, and ordered dated May 8 and May 15, 1985, to be ed. It was noted for the record that urn abstained from voting on the MINUTES OF THE REGULAR MEETING OF FRIDAY, APRIL 26, 1985 WERE APPROVED AS CORRECTED COMMISSION FORMALLY APPROVED CLAIMS SUBMITTED MAY 2 AND MAY 9, 1985, AND ORDERED CHECKS DATED MAY 8 AND MAY 15, 1985 TO BE RELEASED South Bend Redevelopment Commissiorn.A. Regular Meeting - May 10, 1985 3. APPROVAL OF CLAIMS (Cont.) EAST EANK Luann McMorris - Petty Cash $ 66.00 R.E. McCloskey & Associates 4,650.00 Shilt , Graves & Associates 1,900.00 $ 6,616.00 .. Abstract & Title Corp. $ 1,050.00 Congressional Staff Directory 92.00 Dainty Maid Bake Shop 11.30 Howard Park Hardware 41.35 Hurtt enrick & Associates 4,700.00 Indiana Bell 532.68 I &M Electric Company 55.08 Lang, Feeney & Associates 1,200.00 Rick Pitts & Company 4,625.00 St. Joseph Bankcard Division 373.50 Federal Express Corp. 22.00 Kaser Spraker Construction 2,839.00 Jon R. Hunt 42.62 John Pence 358.79 Petroleum Traders Corp. 40.70 Postxnaster 233.48 Travel re 309.00 Vicorp Specialty Restaurants 432.34 Anita L. Zimmerman 425.00 Nicholas C. Jannotta & Assoc. 7,437.28 Kiplinger Washington Letter 48.00 Indiana Reg. Minority Suppliers 20.00 C.D. Training Institute 640.00 Dodd-Blair & Associates 19.00 FICA 1,573.51 Indiana Employment Security Division (D. Freeland) 565.00 Payroll: 4 -13 thru 4 -26 -85 11,023.88 4. COMMUNICATIONS Therelwere no communications. $ 38,710.51 $ 45,326.51 -2- THERE WERE NO COMMUNICATIONS Sout Regt 5. W h Bend Redevelopment Commission .lar Meeting - May 10, 1985 OLD BUSINESS ias no old business. There New Business approval requested for Resolution a. CoTmission No. 737 designating the South Bend Central Development Area, declaring the South Bend Ce tral Development Area to be blighted, ,a 2=oving a development plan and conditions under which relocation is will be made and establishing an allocation area for purposes of Tax Incremental Financing. Mr. Hunt explained that Resolution No. 737 represents a merger of the three existing Redevelopment areas, East Bank, Monroe Park, and Central Downtown Urban Renewal Area. Si ace 1968 those three areas have been de Tared separate Redevelopment projects. M Hunt stated that this is the first step in t process that would merge those three areas into one Redevelopment area and also expand the areas. The staff recommends that the merger be approved for several reasons. First, all three areas are interrelated both physically and functionally, for example traffic patterns, sale of land, goals and objectives In order to address our needs in 1990 and beyond, in Redevelopment's revitalization ani physical redevelopment efforts in the core o the City, we will need a comprehensive plan that views all three areas as one functional area. Secondly, from an internal management standpoint it is more efficient to have one project area as opposed to three separate project areas in terms of record keeping, filing, accounting and financial aspects. Thirdly, it will allow Redevelopment to merge the corresponding tax increment financing allocation areas. There currently are four separate allocation areas. For those reason; the staff would recommend to the Coninission that the merger and expansion be approved. -3- M ze THERE WAS NO OLD BUSINESS South Benq Redevelopment Area Regular M eting - May 10, 1985 6. NEW BUSINESS (Cont.) a. C:ontlnueCi .. . >. Kolata explained the proposed schedule Resolution No. 737 if approved. The solution would be heard by the Area Plan mission on May 21st and then would be isidered by the South Bend Common Council on 28th. Following that there would be a >lic hearing scheduled with the levelopment Commission on June 14th. At Lt time the Corrnnission would take into isideration whatever comments are developed Area Plan and the Common Council, but the mary purpose of that June 14th hearing is provide the evidence of blight. The staff .1 provide evidence of blight for each of three existing Redevelopment areas, the sr expansion areas, and the new South Bend Ltral Development Area as a whole. Mrs. ata pointed out the four expansion areas on a Mrs. Kolata also explained that included in Resolution No. 737 is the relocation policy for the area which primarily follows the Uniform Act established by the Federal Government for use when using federal monies. There are two areas in the policy which go beyond what the Uniform Act requires. The first one is if a tenant is being relocated and chooses to buy a house, Redevelopment waives the 50% downpayment required by the Uniform Act. Redevelopment would put up the entire downpayment to a maximum of $4,000. The other change is with businesses being relocated. If the business being relocated chooses a new location within the City limits of South Bend, Redevelopment would make funds available to them beyond what they would nonually get for helping to bring the building up to code or make modifications to make it co able to their old location. Ms. Auburn commented that she liked the proposed plan because it is streamlined and efficient. It doesn't seem to make sense to continue with three separate project areas when they could be combined into one project ar and improve internal staff efficiencies. -4- South Benj Redevelopment Area Regular M eting - May 10, 1985 6. NEW BUSINESS (Cont.) a. Continued.... . Glenda Hernandez commented that she jected to the proposed merger due to the tax crement funds being available for use in the tire area. She stated that it may be ssible for one area to be short changed in e use of the increment, such as Monroe Park. . Nimtz noted that with the amount of money at has been spent in the Monroe Park area to te, there has been no short changing in that aa. The plans for the area have been a huge Ms. Schwartz noted that the tax increment funds can only be used for Redevelopment purposes such as public improvements, acquisition, etc. Tax increment funds cannot be used for housing rehabilitation or Mr E;. Kolata pointed out that there are about seven parcels indentified for acqisition in Moaroe Park. They were identified by South Be -id Heritage for the purposes of infill ho sing whether that be house moves or new co struction. The tax increment funds could only be used for acquiring the lots or any puDlic improvements on public property. The primary funding source of the proposed plan wo ld be Community Development funds. UpDn a motion made by Ms. Auburn, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 737 de ignating the South Bend Central Development Area, declaring the South Bend Central Development Area to be blighted, approving a development plan and conditions under which relocation payments will be made, and establishing an allocation area for purposes of Tax Incremental Financing. Mr Hunt thanked the staff of Community Development and Redevelopment for the work they put in on the merger. 2612 COMMISSION APPROVED. RESOLUTION NO. 737 DESIGNATING THE SOUTH BEND CENTRAL DEVELOPMENT AREA, DECLARING THE SOUTH BEND CENTRAL DEVELOPMENT AREA TO BE BLIGHTED, APPROVING A DEVELOPMENT PLAN AND CONDITIONS UNDER WHICH RELOCATION PAYMENT'S WILL BE MADE, AND ESTAB- LISHING AN ALLOCATION AREA FOR PURPOSES OF TAX INCREMENTAL FINANCING South B Regular 6. NEW 1701 Redevelopment Commission sting - May 10, 1985 SINESS '(Cont.) Tmission approval requested for a proposal I grant in connection with the Emergency pair Program in accordance with the commendation from the Bureau of Housing. ne Contractor 1dred 0. Borders Bockaj Construction Company 9 N. Jackson . Mary Richmond noted for the record that s property in question is located at 209 N. :�kson not 209 N. Johnson as previously :)n a motion made by Mr. Combs, seconded by . Piasecki and unanimously carried, the nmission approved a proposal and grant in :election with the Emergency Repair Program listed above. c. CoTmission approval requested for a part Release of Mortgage in connection with a Re abilitation Loan to Nemiah and Rosie NeAtsome. Richmond explained that when the title any did the title search it was discovered part of a neighbor's property was rrectly included in the legal description. Commission is being asked to approve the ial Release of Mortgage and add on the new ription to the mortgage which will be rded. Mr F;. Kolata noted that there is one change on tha document. The document listed the Decartment of Community Development instead of Re evelopment. The Commission is being asked to authorize and execute a corrected Release of Mortgage. sn a motion made by Mr. Piasecki, seconded Ms. Auburn and unanimously carried, the muai.ssion approved a partial Release of rtgage and authorized the President and ::retary to sign the necessary documents. ant $2,400.00 COMMISSION APPROVED A PROPOSAL AND GRANT IN CONNECTION WITH THE EMERGENCY REPAIR PROGRAM AS LISTED ABOVE COMMISSION APPROVED A PARTIAL RELEASE OF MORTGAGE AND AUTHORIZED THE PRESIDENT AND SECRETARY TO SIGN THE NECESSARY DOCUMENTS South Bendy Redevelopment Coranission Regular Meeting - May 10, 1985 6. NEW BUSINESS (Cont.) d. ggkEission approval requested for appoin td the Bureau of Housinq Advisory Board. Hunt stated that there are two vacancies the Board. The names being recommended to Commission include JoAnne Patrick and Mark oho. Ms. Patrick currently serves on the th Bend Home Improvement Loan Program Board is a representative from Tower Savings & n who would fill the Advisory Board ancial institution representative. Mr. oho represents labor on the Board. . Nimtz noted that Mark.Donoho is a brother Commissioner Michael Donoho and the Tnmission feels there is no conflict of in a motion made by Mr. Piasecki, seconded Mr. Combs and unanimously carried, the mission approved appointments to the Bureau Housing Advisory Board as listed above. Fivnwff'.T*N410 Mr. Hunt reported that the last Redevelopment parcel of land in Monroe Park that was sold to Sluts -Peltz is now under construction. Also, construction on the Montgomery Ward TeleMarketing Center is going very quickly. Mr. Hunt commented that there was an article in the May 9th South Bend Tribune about the interest of a development group in a possible project in the East Bank area. The Conission has been working with this group for about four months. The development group has submitted an inducement resolution to the South Bend Economic Development Commission. The group felt they had to move quickly on the inducement resolution because of changes in the State law governing industrial revenue bonds and financing for multi - family housing. The Ccmission had hoped that they would be able to finalize in much more detail the propo ed project and make a formal anno cement at a Commission meeting with the devel pers present. -7- COMMISSION APPROVED APPOINTMENTS TO THE BUREAU OF HOUSING ADVISORY BOARD AS LISTED ABOVE PROGRESS REPORTS South Bend Redevelopment Commission Regular Me ting - May 10, 1985 7. PROGRESS REPORT (Cont.) Mr. Niintz apologized on behalf of the Commission as to not having a full announcement of the project. He stated that the Comnission is still in the negotiation stage with the proposed developers. There are a number of items still to be determined on the proposed project, but there has been good cooperation and understanding between all parties. The developer's counsel felt that under the new law they must submit their application to the Economic Development Commission concerning their proposed bonds. The Redevelopment Commission, however, has a different interpretation of the State law and did not feel that the EDC bond application had to be ubmitted at this time. Mrs. K lata noted that the property in question for the proposed project was previously put up for sale and bids were receiv . The property was sold to Mr. Joseph Donlon who then passed away. Since the property was previously put up for sale it is not necessary to re- advertise and puts the Commission is able to negotiate with the prospective developer. Mr. H t also reported that the demolition of South Bend Screw Products in the East Bank area i 3 underway. 8. NEXT C MMISSION MEETING The net Regular Meeting of the Commission will held on Friday, May 24, 1985, at 10:00 a.m. 0 Mr. Niintz noted that immediately following the meeting the Commission will reconvene the Execut ve Session to consider those items they did no have a chance to discuss when the recess at 10:00 a.m. NEXT COMMISSION MEETING South Benc Regular ME 9. ADJOUF There the Cc that t seconc carriE a.m. Redevelopment Commission sting - May 10, 1985 ( font . ) ing no further business to come before fission, Mr. Piasecki made a motion meeting be adjourned. Ms. Auburn the motion and it was unanimously The meeting was adjourned at 10:40 , President ign K. hunt, hxecutive