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HomeMy WebLinkAboutRM 06-14-85June 14, 19� 10:00 a.m. Presiding 0: 1. ROLL CA Members Legal Cc Redevel( Communii Bureau c 2. 3. News Me( Others: 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. Michael Donoho, Assistant Secretary Mr. Sandy Combs, Member �sel : Lent Staff: Development Staff: Housing Staff: OF MINUTES Ms. Eugenia Schwartz Mrs. Ann Kolata, Executive Deputy Director Ms. Denise Sullivan, Office Manager Ms. Colleen Rosenfeld, Director Ms. Mary Richmond, Project Director Mr. Ted Leverman, Project Director Ms. Jeanne Derbeck, South Bend Tribune Mr. Gary Sieber, WNDU -TV Mr. Jon O'Sullivan, WNDU -TV Mr. Ervin Purucker, Mathews, Purucker, Anella Mr. Rick Kizer, Mathews, Purucker, Anella Mr. Nicholas C. Jannotta, Jannotta & Assoc. Mr. Abbott Nelson, Jannotta & Assoc. Ms. Valarie M. Miller, Teachers Credit Union Mr. Ben Hawkins, Teachers Credit Union Upon a motion made by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the minutes of the Regular Meeting of Friday, May 24, 1985 were approved. Upon a Mr. Con Commiss submitt and ord June 19 OF CLAIMS tion made by Ms. Auburn, seconded by and unanimously carried, the n formally approved the claims May 30, June 6, and June 13, 1985, ed checks dated June 5, June 12 and 1985 to be released. MINUTES OF THE REGULAR MEETING OF FRIDAY, MAY 24, 1985 WERE APPROVED CLAIMS DATED MAY 30, JUNE 6, AND JUNE 13, 1985 WERE FORMALLY APPROVED AND CHECKS DATED JUNE 5, JUNE 12 AND JUNE 19, 1985 WERE ORDERED TO BE RELEASED South Bend Redevelopment Commission $ 769.00 Marriott Regular Meeting - June 14, 1985 Warren, Gorham & Lamont 3. APPROV OF CLAIMS (Cont.) of Documents 39.00 RED MENT DISTRICT BONDS - 1972 95.29 Ziolkow ki Construction $ 1,677.88 St. Joseph Bank & Trust Makiels 686.90 25.49 Total $ 2,364.78 EAST BAIT land 243.00 Indiana Abstract & Title Corp. $ 400.00 25.91 Total $ 400.00 Schuell Fence $ 769.00 Marriott Hotels 46.97 Warren, Gorham & Lamont 72.80 Superintendent of Documents 39.00 Americana Inn 95.29 First Source Bank Auto Lease 231.71 General Fund 439.98 Makiels i Art Shop, Inc. 25.49 Business Systems, Inc. 159.03 Compute land 243.00 Indiana Bell 465.51 Makiels i Art Shop 25.91 Luann M rris - Petty Cash 108.29 Postmaster 551.09 South Bend Tribune 42.86 St. Joseph Bankcard Division 395.16 Clerk of St. Joseph County 18,848.00 Tri-CoLuity News 43.77 Homer W Fisher 2,511.00 Minneapolis Riverfront Alliance 125.00 Joy's 40.00 AB Dick Products 26.00 Circle Lumbeer, Inc. 67.37 Makiels i Art Shop 14.00 Moore Computer Supplies Catalog 71.69 Petroleum Traders Corp. 56.83 Plastimitic Arts Corp. 14.85 Coffee Time Services 24.70 Servoma ion Corporation 281.01 Hallmark Real Estate 100.00 Richard E. Nichols Assoc. 750.00 Ida Hof man 1,182.45 Star Te rary Services, Inc. 725.40 -2- South Bend edevelopment Commission Regular Meeting - June 14, 1985 3. 4. FICA Payroll: a. OF CLAIMS (Cont.) 2,307.89 May 30, 1985 10,810.61 Total $41,711.66 Grand Total $44,476.44 :er from Teachers Credit Union. Mrs Kolata read the following letter dated June 13, 1985, received from Teachers Credit Union regarding Disposition Parcels 4 -67, 4-68, 4 -84 and vacated alley previously purchased from the Redevelopment Commission. Mr. Nimtz: Teachers Credit Union respectfully !sts the Redevelopment Commission to rve the Credit Union's amended project -iption. These project amendments are nary in order to remain eligible for mic Development Revenue Bond financing. Purusant to the regulations of the Internal Revenue Service Teachers Credit Union may only remain eligible for bond financing, if the Credit Union's capital expenditures for the prescribed six year period do not exceed ten million dollars. Due to the extent of the Credit Union's purchases and capital imp ovements over the past three years in South Bend, it will be necessary to reduce the project cost by eliminating the top two floors to pproximately six million dollars. Fortunately, due to the original design of the building, the Credit Union may amend the project by deleting the top two floors wit1iout impairing the functional use of the building. As you will recall in the initial des gn proposal, as submitted within the nar ative Bid Pack Supplement on February 17, 198 , included a six floor building with app oximately 71,500 square feet above ground. Now as amended, the project design for four -3- I,F'1VPRR DATED JUNE 13, 1985 RECEIVED FROM TEACHERS CREDIT UNION WAS READ INTO THE RECORD South Bend Regular Me, elopment Commission - June 14, 1985 5. COMMUNIMTIONS (Copt.) a. c:ontinuea... floors contains approximately 66,438 square fee , if the subsurface level is utilized. The dimensions for the new building design include the following: 1) The first floor will contain 13,947 square feet, and will house the necessary banking equipment and facilities to provide ten teller stations, two automated teller machines, and the members services department; 2) The second floor, consisting of 13,606 square feet, will contain a second story balcony designed to provide the first floor with an atrium ceiling. The floor will be used for administrative offices; 3) The third floor will contain 11,786 square feet and the fourth floor will contain 12,203 square feet. These floors will be used for administrative and operational offices, such as the Visa department and accounting. The four floors, described above, together with a 14,896 square feet basement co rise 66,438 square feet. Therefore, these diimmsions are very similar to the original design containing 71,500 square feet above ground. All that is lost by eliminating the two top floors is space to expand our operational functions into additional offices, and space to lease to third parties. The four floors and basement supply sufficient space to provide the Credit Union's total line of financial services to Credit Union members, particularly those employed in the downtown area. Therefore, the Credit Union's amended building proposal will not impair the intended use of the building. All design feature found in the original proposal, for the first four stories are identical to the original proposal will remain unchanged, des ite the slight reduction in space. Thank you for your consideration of this led project description. If the .ssion or the Department of Redevelopment South Bend Redevelopment Commission Regular Meeting - June 14, 1985 5. COMMUNICATIONS (Cont.) a. continuea... has any questions concerning this amendment, pl. se telephone my office at 232 -8011. Mr. Sincerely, Teachers Credit Union W. B. Hawkins President Ben Hawkins was present and noted that ,hers Credit Union was anxious on getting .r building started. He stated that they I the space desperately and believe the ect to be very beneficial to Teachers lit Union and downtown South Bend. Mr. Donoho made a motion to amend the Teachers Credit Union project description to reflect concepts and requests set forth in the letter of June 13, 1985, received from Teachers Credit Union, and authorize the President and Sec etary to execute any necessary documents. The motion was seconded by Mr. Combs and unwiimously carried. Mr. Hawkins invited everyone to join them at the groundbreaking ceremony on June 21, 1985, at :30 a.m. at the site. He stated there will also be an open house at the Americana Hotel immediately following the groundbreaking and all are welcome to attend. Ms.1Jeanne Derbeck asked about the con truction of the parking garage. Mrs Kolata explained that the staff is still looking at a couple of possibilities on how and when to construct the garage. The possibilities are to delay the construction or to build it without leasing to Teachers Credit Union, but no decision has been made as of yet She explained that it ties into the Internal Revenue Service determination as to whether or not it counts against Teachers Cre.lit Union's capital expenditures. G • There wad no old business. -5- COMMISSION APPROVED TO AMEND THE TEACHERS CREDIT UNION PROJECT DESCRIPTIOIN RELATING TO DISPOSITION PARCELS 4 -67, 4 -68, 4 -84 AND VACATED ALLEY IN THE SOUTH BEND CENTRAL DEVELOP- MENT AREA NO OLD BUSINESS South Be Regular 6. NEW a. nd Redevelopment Commission Meeting - June 14, 1985 BUS ENSS Hearing on the South Bend Central Public Dev to nt Area with respect to confirming Resolution No. 737 and approval of Commission Resolution No. 739 ratifying and confirming Resolution No. 737 designating the South Bend Central Development Area, declaring the South Bend Central Development Area to be blighted, approving a develo ment plan and conditions under which relocation is will be made, and establishing an allocation area for ur ses of Tax Incremental Financing. As A first step of the public hearing, Mrs. Kol to entered the following items into the record: 1. An original of the Notice of Public Heari: the South Bend Central Development Area. 2. An Affidavit of Carol Smith, Classified Manager of the South Bend Tribune, that N of Public Hearing was published in that d newspaper on May 31, 1985. 3. An Affidavit of Steve Kollar, owner of th Tri- County News that Notice of Public Hea was published in that weekly newspaper on 31, 1985. 4. An Affidavit of Loren M. Rooney that a No of Public Hearing was delivered to Ms. Jo Grzeskowiak of the Area Plan Commission, Mary Rose Putz of the Board of Public Wor Ms. Jacquelyn Williams of the Board of Zo Appeals and South Bend Building Departmen and Ms. Florence Brown of the Park Depart on June 3, 1985. 5. An original copy of the Area Plan Commiss Resolution No. 84, which deals with the subject of the Public Hearing. 6. A certified copy of Resolution No. 1294 -8 the Common Council of the City of South E relative to the subject of the Public Hea -6- ng of Mice aily ring May tice anne Ms. ks, ning t, ment ion's 5 of end ring. PUBLIC HEARING WAS HELD IN RELATION TO THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Regular Me elopment Commission - June 14, 1985 6. NEW BUSINESS (Cont.) a. uonr-inuea... 7. A copy of Resolution No. 737 of the Redevelopment Commission with a copy of the Development Plan attached. Mr. Nimtz asked for any objections to entering these documents and materials into the record. No objection was heard. The Chair introduced the documents presented into the record. Mrs Kolata noted that as of 10:00 a.m., June 14, 1985, there were no written remonstrances received relating to the Public Hearing. The Chair observed there were no remonstrances received prior to the Redevelopment Commission meeting concerning the Public Hearing. Mrs Kolata explained that on May 10, 1985, the Commission adopted Resolution No. 737 which merges and expands three existing Redevelopment areas. This was done for three major reasons. First, from a planning stwidpoint the areas are all inter - related. Physical development in one area affects the others. In order to maximize Redevelopment's revitalization efforts we need to have a co rehensive plan that views all three areas as one functional area. Also by expanding the arais, we tie land that is directly related to our Redevelopment efforts into that Redevelopment project area. The second reason for the merger was to increase our efficiency in the management of the Redevelopment areas. This happens from a filing, accounting and record keeping standpoint. The third major purpose for merging the area is to merge the existing tax incremental financing allocation arels. Before adopting the resolution, the staff of the Department re- examined the conditions in each of the three existing Redevelopment Arats, the four expansion areas, and the new merged South Bend Central Development Area as a whole. Some pf the items that staff looked into were the inventory of vacant land, vacant buildings, underutilized land, underutilized buildings, building conditions, environmental -7- South Bend Regular Me, elopment Commission - June 14, 1985 6. NEW BUS$NESS (Cont.) a. Continued... co laints, demographics, building code violations, building permits, and building demblitions. The staff also asked Nicholas C. Jaruiotta & Associates to review the information that was collected, analyze it fraa the viewpoint of a real estate consultant, and comment on the relationship of the existing areas and the expansion areas to each other, as well as the growth of development in these areas. Mr. Jannotta has prepared a written report to the Commission and he was present with his associate, Abbott Nelson, to summarize his views on the Co ssion's actions. ThelChair recognized Mr. Nicholas Jannotta. Mr. Jannotta explained that as consultants they were asked to give their opinion regarding the appropriateness of merging and ex ding the three Redevelopment areas, East Bank, Monroe - Sample and the Central Development Urban Renewal areas, from the standpoint of real estate economics, markets and development feasibility. Mr. Jannotta sumnarized what their findings were in a report dated May, 1985. Mr. Jannotta noted their conclusions are that these proposals should be implemented for the following reasons: For economically viable development to proceed throughout these areas, the power of eminent domain and the ability to write down the cost of land are still re fired. These are needed to enable the ass lage of adequately sized parcels for development through the consolidation of fra tionalized ownership. A strong economic and market relationship exists between the three Redevelopment areas so that their merger into one area would be clearly beneficial for manigement, comprehensive planning and development. The expansion areas proposed are functionally and economically an integral part of the original Redevelopment areas designated and should be included therein. The following paragraphs set forth their analysis in support of these conclusions. South Bend Regular Mee 6. NEW BUS a. Con Whe res bli obs act of pri suc are con the the pen upg are elopment Commission - June 14, 1985 (Cont.) Jannotta & Associates started their arch one of the areas they looked at was ht in the sense of functional and economic lescence, not deterioration. With the ons taken by the City and the Department edevelopment, in cooperation with the ate sector, there has been considerable ess in restoring viality to the central of South Bend. It is clear that the iderable redevelopment on the west bank of river, the beginnings of redevelopment on east bank with additional proposals ing, and new industrial activity and ading of housing in the Monroe - Sample area directly attributable to the redevelopment ram as initiated and fostered by the City. The Central area redevelopment may seem like a sloAT process. However, when comparing how long it took originally to develop the Central area, when considered that development started som hundred years ago and most buildings in the downtown area are 55 years old, the progress made in the past 17 years can be stated as being incredible when considering fra tionalized ownership, zoning and building ordinances, and other kinds of development handicaps regarding the financing and justification required by the government. Mr. Jamotta compared what is happening in development of downtown South Bend to Chicago's downtown development. The trends in re fling are impacting every city. The do town function has changed. Office, fin3mcial, governmental, entertainment and hou ing activities are now being stressed in do towns across the nation and in downtown South Bend. Mr. Jannotta noted that it is quite a statement for a city the size of South Bend to have a new hotel, Century Center, Teachers Credit Union, One Michiana Square, B1 k 6, housing for the elderly, re bilitation and a considerable amount of activity which has added greatly to the rev'talization of the downtown area and its ona ina success. U'19 South Bend Regular MeE 6. NEW BU; a. Cor Mr. cor quc TrF, Con est in 835 est 240 est tot wit $82 too inf pre oth the exc wer $22 evi fun tim out int be and the is elopment Commission - June 14, 1985 (Cont.) Jannotta discussed the kind of blight that Inues to exist in the downtown area ang sources from the Census of Retail le, Bureau of Census, U.S. Department of fierce. Paid employees in retail ,blishments in South Bend's Central .ness District (CBD) in 1967 totaled 3,400 )le. In 1982 the number of paid employees -etail establishments in the CBD totaled When looking at the number of retail .blishments in the CBD, in 1963 there were and in 1982 there were 67 retail blishments remaining. In 1963 there was a .1 of $90 million in total retail sales In the CBD. In 1982 there was a total of million. That drop does not seem to be precipitous, however, if you take out ation in those number that is a very :ipitous drop in total retail sales. One :r factor Mr. Jannotta pointed out was that total sales of retail establishments, uding the automotive, in 1963 retail sales $65 million and in 1982 retail sales were million. Since 1982 there has been fence of a continued erosion of the retail !tion in the downtown area. Since that Penneys and Gurley Leep Buick have moved of the downtown. Robertsons has moved smaller quarters, and there continues to high vacancy of available space in the town area. There still remains a large per of parcels and buildings in all three dopment areas that are either vacant or !rutilized. des the evidence of the physical rioration, there is both functional and omic obsolescence. An example of the tional obsolescence are multiple houses and loft buildings in both downtown the East Bank where their function has ged and there is tremendous difficulty in reutilization of these buildings. In the ilization of these buildings the risks are higher because they were basically not gned for any other use than what they were inally intended. Functional obsolescence lso seen in the Robertson's building. It -10- South Bend edevelopment Commission Regular Mee ing - June 14, 1985 6. NEW BUSINESS (Cont.) a. uon inuea... is a multi - story, retail building with high operating costs that were adversely impacting the financial statement of Robertson's, so the went to a low -rise building containing a mor efficient number of square feet. Mr. Jannotta discussed economic obsolescence which refers to reversed environmental factors or to the innappropriate location of a structure for the use it is intended. This can result from changes in the highest and bes use of land and economic trends. The redevelopment area is either trying to eliminate those kinds of factors or to soften the effect by doing buffer zones and transitional areas to maintain values. Ana er point regarding blight is a large degree of fractionalized ownership which inhibits the assemblage of adequately sized parcels for new development, rennovation and conversion to new uses. The close functional and economic relationship which exists between the three Redevelopment aruis warrant their merger into a single development area. Again, it facilitates the co rehensive planning, management and orderly development of all these three areas. There is a considerable amount of paperwork involved in the coordination of these three project areas which would be eliminated in the merger of the project area. While each of these arais have their own individual characteristics, the real estate market within them to a large extent is interdependant. The success or failure of redeveloment in one area directly affects the real estate market in the other areas. Within the context of the Central area, each of these development areas per orms distinct functions and impacts the other, and development should be carefully designed to maximize the mutual support be een the uses not only within each area, but within the total merger of the three -11- South Bend Regular Me, elopment Commission - June 14, 1985 6. NEW BUSMSS (Cont.) a. uontinuea... Mr. Jannotta cited some examples of the market relationships which exists between these areis. An increase in office development in the central downtown area will enhance the market for relatively high income housing in the East Bank and middle- income housing in the Monroe-Sample area. In September of 1984 Jaruiotta & Associates did a housing study and it was estimated that 70% of the new units to be constructed in the East Bank area would be ocaipied by people employed in the downtown arai, reinforcing the need for the housing. The supply of good quality and walk -to -work housing will help strengthen the downtown office market. Many office market locational dec sions hinge on the location of close and convenient housing for their employees. At the same time the residents who will be residing in the East Bank and the Monroe-Sample areas will support the retail functions located within the downtown area. The people living in the housing for the elderly currently lack facilities for grocery shopping. This hopefully will be satisified by the inclusion of retail facilities in the central area thereby making living in the housing for the elderly more convenient. The personal health and recreational facilities such as those in the East Bank area draw patronage from the downtown area employment force and in turn provide amenities which help support the office and housing markets in the three areas. The industrial firms are located in the Monroe - Sample area primarily because of its central location. However some, like priziters and construction contractors, are near downtown largely because they serve institutions and establishments in the do town area. At the same time the lawyers and accountants also support the industrial fri ae users as well. In addition to representing the major emp oyment concentration, downtown is the finincial, business, governmental and professional center serving the South Bend arai. It is also the center for conventions, bus ness meetings and conferences, cultural -12- South Bend edevelopment Commission Regular Mee ing - June 14, 1985 6. NEW BUSINESS (Cont.) a. Lon inuect.. . facilities and major entertainment activities. Its vitality is important to the economic health of the entire city. But is it not an isLind unto itself, for its markets for real estate development are affected by the supporting facilities and the environmental quality of its fringe areas, including the East Bank and Monroe- Sample areas. Coordinated physcial and financial planning can best be effectuated by a merger of the three areas described. Tax increment f i ncing (TIF), for example, is a tool available to South Bend to help foster development where it is most needed. Under this procedure, authorized by state - enabling leg slation, real estate tax funds are made available as a result of new construction. Flexibility in the use of the funds made available through TIF does not mean that one area benefits at the expense of another. Rather, with the merger, it provides a mechanism which can be sensitive to timing so as to program government expenditures in an Ord rly manner and to maximize benefit to the ent re area. Mr .lAbbott Nelson pointed out on a map the bo daries of the expanded areas. Mr. Jannotta noted a few points which reinforce the necessity for the expansion areas. The types of uses and structures are similar to those in the existing development areas. Vacancies of land and buildings are sim.lar to those in the adjacent development araLs. Environmental protection for new development can best be assured through des gnation of the expansion areas. Functionally, the development areas, with the eXpELnsion areas, make much more logical plarming units than without them. Lastly, because of the character of existing development and fractionalized ownership of real. estate, the need for governmental powers to assemble land for adequate development units exists in the expansion areas in the s way as it exists in the present dev lounent areas. -13- South Bend Regular Mee 6. NEW BUS a. Con elopment Conmdssion - June 14, 1985 (Cont.) In suffmary, Mr. Jannotta noted the inclusion of the proposed expansion areas into each development and the merger of the three development areas are appropriate and will facilitate the overall management, planning and development of these areas to the benefit of the City as a whole. Mr. Nimtz thanked Mr. Jannotta and Mr. Nelson for their report. The Chair entered the study from Jannotta & Associates into the record. Mrs Kolata read the findings of evidence of blight in the following Findings of Fact dated June 14, 1985: The South Bend Redevelopment Commission has conducted a study of the South Bend Central Development Area (Area) and has found that the Area is blighted to an extent that cannot be corrected by regulatory processes or by the ordinary operations of private enterprise without resort to the Indiana Redevelopment Law IC 36- 7 -14 -1, et'. seq. Blight is found in the Area based on the following facts: 9M In the portion of the Area previously designated as the Central Downtown Urban Renewal Area: 1. Six percent (6 %) of the land is currently vacant. (This does not include land used for streets and alleys.) 2. Fourteen percent (14 %) of the land is currently underutilized or has buildings on it that are underutilized. (This does not include land used for streets and alleys.) 3. There is currently 462,499 square feet of Class A office space with a vacancy rate of three percent (3 %), 465,089 square feet of Class B office space with a vacancy rate of twenty -four percent (24 %) and 40,500 square feet of Class C office space with a vacancy rate of forty percent (40 %). This is an overall vacancy rate of nearly fifteen percent (15 %). -14- FINDINGS OF FACT WERE READ INTO THE RECORD South Bend edevelopment Commission Regular Mee ing - June 14, 1985 6. NEW BUSINESS (Cont.) a. uontinuea... 4. The number of retail establishments has decreased from sixty -six (66) in 1977 to twenty -seven (27) at the present time. Of the 350,293 square feet of retail space, 229,873 square feet, nearly sixty -six percent (66 %), is vacant. 5. The number of restaurants has decreased from fifteen (15) in 1977 to nine (9) at the present time. Of the 39,067 square feet of restaurant space nearly nine percent (9 %) is vacant. 6. Thirty -five percent (35 %) of the store fronts are currently vacant. In the portion of the Area previously designated as the East Bank Development Area: 1. Twenty -nine percent (29 %) of the land is currently vacant. (This does not include land used for streets and alleys.) 2. There are sixty -one (61) commercial structures. Four of these structures have been acquired by the Department of Redevelopment and are scheduled for demolition. These buildings contain 53,280 square feet and are on parcels totalling 92,448 square feet. When cleared, this will mean an additional four percent (4 %) of the area will be vacant, making a total of thirty -three percent (33 %) of vacant land, exclusive of streets and alleys. 3. An additional ten structures are vacant and not scheduled for Redevelopment acquisition. These buildings contain 114,090 square feet of space. Six other structures are underutilized or partially vacant. These buildings contain 304,104 square feet of space. 4. Of the sixty -one (61) commercial structures, approximately eighty -two percent (82 %) require cosmetic and /or structural repairs. -15- South Bend edevelopment Commission Regular Mee ing - June 14, 1985 6. NEW BUSINESS (Cont.) a. uon 1nuea... 5. There are fifteen (15) residential structures. All of these structures (100 %) require cosmetic and /or structural repairs. 6. Over the last three years the number of environmental complaints has increased from twenty -two in 1982 to thirty -four in 1984. In 1982 the City of South Bend Department of Code Enforcement only had six clean-ups in the area. That increased to twenty -six in 1983 and thirty -one through the first ten months of 1984. 7. The East Bank Development Area was declared a redevelopment area in late 1980. In 1981 the area was rezoned from "D" Light Industrial to "A -3" Mixed Use Residential. In spite of the rezoning to a residential classification, residential growth has not taken place. In fact the total number of housing units has decreased from twenty -one (21) in 1980 to eighteen (18) in 1984. C. In the portion of the Area previously designated as the Monroe Sample Development Area: 1. Fourteen percent (14 %) of the land is currently vacant. (This does not include land used for streets and alleys.) 2. There are one hundred eighteen (118) residential structures. Twenty -two (22) of these structures (19 %) require major cosmetic and /or structural repairs. Eighty -four (84) structures (71 %) require minor cosmetic repairs. D. In the portion of the Area designated in Resolution No. 737 as Expansion Area No. 1: 1. Forty -two percent (42 %) of the land is currently vacant. ('This does not include land used for streets and alleys.) 2. Nearly eight percent (8 %) of the area is land with vacant buildings. -16- South Bend edevelopment Commission Regular Meeting - June 14, 1985 6. NEW BUS$NESS (Cont.) a. uon inuea... 3. Of the seven (7) ccmmercial or industrial buildings, two (2) are vacant (280). 4. Of the nine (9) residential structures, five (5) require major structural or cosmetic repairs (55 %) and four (4) require minor cosmetic repairs (45 %). E. In the portion of the Area designated in Resolution No. 737 as Expansion Area No. 2: 1. Twenty -three percent (23 %) of the land is currently vacant. (This does not include land used for streets and alleys.) 2. Of the eighteen (18) commercial or industrial buildings, four (4) are vacant and one (1) is underutilized. This means that twenty -eight percent (28 %) of the commercial or industrial buildings are vacant or underutilized. 3. Of the sixteen (16) residential structures, all of them (100 %) require major or minor cosmetic repairs. F. In the portion of the Area designated in Resolution No. 737 as Expansion Area No. 3: 1. Thirty percent (30 %) of the land is currently underutilized. 2. Of the four (4) residential structures, all of them (100 %) require varying degrees of structural and cosmetic repairs. G. In the portion of the Area designated in Resolution No. 737 as Expansion Area No. 4: 1. Eleven percent (11 %) of the land is currently vacant. (This does not include land used for streets and alleys.) 2. Nearly forty percent (40 %) of the land is currently underutilized or has buildings on it that are underutilized. (This does not include land used for streets and alleys.) -17- South Bend Regular Me elopment Commission - June 14, 1985 6. NEW BUS$NESS (Cont.) a. Lon -rinuea... H. 3. There are seventy -one (71) ccnmiercial structures. Thirteen (13) of these structures (18 %) are vacant. 4. There are thirty -seven (37) residential structures containing one hundred sixty -four (164) units. Twenty -eight (28) of these units are vacant (17 %). 5. Of the thirty -seven (37) residential structures, fourteen (14) require major cosmetic and /or structural repairs (38 %). In the entire Area: 1. Fifteen percent (15 %) of the land is currently vacant. (This does not include land used for streets and alleys.) 2. An additional fourteen percent (14 %) of the land is currently underutilized or has buildings on it that are underutilized. (This does not include land used for streets and alleys.) 3. In addition to the fact that twenty -nine percent (29 %) of the land within the entire Area is either vacant or underutilized, the findings within Paragraphs A through G inclusive, above, are all incorporated by reference as to blight within the entire Area, inasmuch as the Commission finds that blighting influences from one part of the Area have a substantial negative impact on other parts of the Area and that blight within any part of the Area is interrelated to a substantial degree with the remainder of the Area. To substantiate this finding further, the Commission adopts by reference the report to the Commission by Nicholas C. Jannotta and Associates, Ltd., dated May, 1985, entitled "Proposed Merger & Expansion of Central Development Areas in South Bend, Indiana" and directs the Secretary to file a copy of it with the minutes of this meeting. '.:-:a South Bend ?development Commission Regular Mee ing - June 14, 1985 6. NEW BUSINESS (Cont.) a. Uonti.nuea... Mrs Kolata stated that concluded the staff's pre entation of the Public Hearing. Mr. Nimtz asked if there were any r nstrances by the public. No remonstrances were heard. No one from the public asked to spaik on the subject of the public hearing. The Chair asked if there was objection to concluding the Public Hearing. The Chair heard no objections. The Public Hearing was concluded for Commission action. Upon a motion made by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Comnission approved the Findings of Fact as presented by Mrs. Kolata. Upon a motion made by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the ComAssion approved Resolution No. 739 ratifying and confirming 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 payments will be made, and establishing an allocation area for purposes of ax Incremental Financing. b. Coranission a royal requested for Resolution No. 740 authorizing the preparation, execution, use and submission of proclaimer cer ificates in connection with the South Bend Central Development Area. Mrs Kolata explained that Resolution No. 740 is similar to Commission resolutions in the past authorizing the preparation of proclaimer certificates to set the value of land to be purchased or to be sold. Upot a motion made by Mr. Piasecki, seconded by mr. Combs and unanimously carried, the Comiission approved Resolution No. 740 authorizing the preparation, execution, use and submission of proclaimer certificates in co ection with the South Bend Central Dev loment Area. � i sM PUBLIC HEARING WAS CONCLUDED AND THE FINDINGS OF FACT WERE APPROVED BY THE COMMISSION COMMISSION APPROVED RESOLUTION NO. 739 RATIFYING AND CONFIRM - ING 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 CONDI -. TIONS UNDER WHICH RELOCATION PAYMENT'S WILL BE MADE, AND ESTABLISHING AN ALLOCATION AREA FOR PURPOSES OF TAX INCREMENTAL FINANCING COMMISSION APPROVED RESOLUTION NO. 740 AUTHORIZING THE PREPARATION, EXECUTION, USE AND SUBMISSION OF PROCLAIMER CERTIFICATES IN CONNECTION WITH THE SOUTH BEND CENTRAL DEVELOPMENT AREA South B e Regular 6. NEW C. e. nd Redevelopment Commission Meeting - June 14, 1985 BUSINESS ( font . ) approval requested for Proclaimer Commission Certificate No. 1 relative to establishment of fair market value of property to be acquired in the South Bend Central Development Area. Mrs Kolata explained that Proclaimer Ce ificate No. 1 sets the acquisition price for a number of parcels of land that were included on the acquisition list as part of the development plan attached to Resolution No. 737. The properties to be acquired include the State Theater, the lot between the JMS building and Colfax parking garage, the Bae s building, and the lot at the corner of Main and Western. It also sets the price for a n r of vacant residential lots in the Mo oe- Sample area for the purposes of infill housing. Upon a motion made by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Comftission approved Proclaimer Certificate No. 1 relative to establishment of fair market value of property to be acquired in the South Bend Central Development Area. Commission approval requested for Resolution No. 741 relating to acquisition of property by condemnation in the South Bend Central Development Area. Kolata explained that Resolution No. 741 Mrs authorizes the staff to send a purchase offer which is a final offer, giving the property owners 30 days in which to respond or then the staff will proceed to condemnation. The properties in questions are the same as the ones listed in Proclaimer Certificate No. 1. Upon a motion made by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Comnission approved Resolution No. 741 relating to acquisition of property by condemnation in the South Bend Central Development Area. Comnission appointments to the Design Review Comnittee for the South Bend Central Area. -20- Developuent COMMISSION APPROVED PRO - CLAIMER CERTIFICATE NO. 1 RELATIVE TO ESTABLISHMENT OF FAIR MARKET VALUE OF PROPERTY TO BE ACQUIRED IN THE SOUTH BEND CENTRAL DEVEL- OPMENT AREA COMMISSION APPROVED RESOLUTION NO. 741 RELATING TO ACQUISITION OF PROPERTY BY CONDEMNATION IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend edevelopment Commission Regular Mee ing - June 14, 1985 6. NEW BUSINESS (Cont.) e. ConT- inuea.. . Mrs Kolata explained that with the action taken today by the Commission in confirming the new Redevelopment area, we have eliminated our previous Design Review Committee. The Comnission is being asked to approve the establishment of a new Design Review Committee that is made up of eight members. Four menZers are appointed by position which include the Director of Redevelopment, City Building Commissioner, Director of Area Plan Commission, and the City Engineer. The fifth me r is to represent the area as a whole. The staff is recommending that Bruce Huntington be appointed to that position. Mr. Huntington has a Masters Degree in Urban Plmming and serves as a Consultant within the community. The three remaining positions need to be appointed, but the staff is not prepared to make any recommendations to the Commission at this time. It is a two year term and the fir t meeting will be scheduled for June 18, 198t. Upom a motion made by Mr. Piasecki, seconded COMMISSION APPROVED APPOINT - by Mr. Combs and unanimously carried, the MENDS TO THE DESIGN REVIEW Commission approved Jon R. Hunt, Richard COMMITTEE Jo son, Jack Mathews, John Leszczynski and Bruce Huntington as appointments to the Design Review Committee. f. ssion authorization requested for President and Secretary to execute contract for services with Ralph D. Lauver, Real Estate Appraiser and Consultant, for appraisals for real property located within the South Bend Cenixal Development Area. Mrs Kolata stated that Items 6f and 6g are related. Both contracts for services will be in the amount of $15,000 each. The work would be completed within 45 to 60 days and each contractor would be asked to prepare 25 appraisals within the newly established Red veloment area. Upo a motion made by Mr. Combs, seconded by Ms. Auburn and unanimously carried, the Conriission authorized the President and -21- South Bend Redevelopment Commission Regular Meeting - June 14, 1985. 6. NEW BUS NESS (Cont.) Secretary to execute contract for services wi Ralph D. Lauver, Real Estate Appraiser and Consultant, for appraisals for real pro3erty located within the South Bend Central Dev lopment Area. g. Comnission authorization requested for President and Secretary to execute contract for services with Ronald E. Gettel, Real Estate Appraiser and Consultant, for appraisals for real property located within the South Bend Central Development Area. Upon a motion made by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Comnission authorized the President and Secretary to execute contract for services witli Ronald E. Gettel, Real Estate Appraiser and Consultant, for appraisals for real pro rty located within the South Bend Central Development Area h. Corpission approval r ested for proposals and grants in connection with the Emergency Et?2#ir Program in accordance with the rec mmendation from the Bureau of Housing. Contractor Ma D. Hicks Electric Construction Co. 1308 Fassnacht Ver ena Chism Edward J. White, Inc. 1418 Sorin Elizabeth Molnar Niezgodski & Sons 2020 Prairie Avenue Upon a motion made by Mr. Piasecki, seconded by D1r. Combs and unanimously carried, the Conoission approved proposals and grants in co ection with the Emergency Repair Program as isted above. i. ConmLission approval requested for 2=sals and loans in connection with the Affordable Loan Program in accordance with the rec mmendation from the Bureau of Housing. -22- COMMISSION AUTHORIZED THE PRESIDENT AND SECRETARY TO EXECUTE CONTRACT FOR SERVICES WITH RALPH D. LAUVER, REAL ESTATE APPRAISER AND CON - SULTANT, FOR APPRAISALS FOR REAL PROPERTY LOCATED WITHIN THE SOUTH BEND CENTRAL DEVELOPMENT AREA COMMISSION AUTHORIZED THE PRESIDENT AND SECRETARY TO EXECUTE CONTRACT FOR SERVICES WITH RONALD E. GETTEL, REAL ESTATE APPRAISER AND CON- SULTANT, FOR APPRAISALS FOR REAL PROPERTY LOCATED WITHIN THE SOUTH BEND CENTRAL DEVELOPMENT AREA •• 11 $330.00 $248.00 COMMISSION APPROVED PROPOSALS AND GRANTS IN CONNECTION WITH THE EMERGENCY REPAIR PROGRAM AS LISTED ABOVE South Bend I Regular Meei 6. NEW BUS= i . Coni elopment Commission - June 14, 1985 (Cont.) Contractor Ch4les Roberts Hanks Enterprise 518 E. Milton Boru4e Rae Martsolf Hanks Enterprise 927 E. Sorin Ida G. Mitcham K.C. Construction 728 W. Wayne Judv Purnell Jurtin Const. Co. 708 W. Wayne Street Mr. Piasecki asked how the land contract for Boniie Rae Mortsolf, 927 E. Sorin, relates to this program. Ms. Richmond stated that Ms. Martsolf will onl17 be signing a promissory note. The Bureau's first choice is to. direct the applicant to refinance land contracts. Ms. Riclmiond wasn't sure if this particular app icant was asked to refinance the land con ract, but she will look into seeing if Ms. Martsolf was asked to refinance. The Commission's decision was not to approve the Affordable Loan for Bonnie Rae Martsolf, 927 E. Sorin, until after the Bureau staff re rted back to the Commission the status of possible refinancing of her land contract. Upon a motion made by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Comnission approved proposals and loans in connection with the Affordable Loan Program as listed above with the exception of Bonnie Rae Martsolf, 927 E. Sorin. j. Comnission approval requested for proposals and loans in connection with the Section 312 Loah.Program in accordance with the recommendation from the Bureau of Housing. Nam Contractor Ma Miles Jurtin Construction Co. 118 S. Illinois -23- $20,717.00 $14,560.00 $17,179.00 $25,685.00 Loan $10,800.00 $11,400.00 $13,450.00 $13,350.00 COMMISSION APPROVED PROPOSALS AND LOANS IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM AS LISTED ABOVE WITH THE EXCEPTION OF BONNIE RAE MARTSOLF, 927 E. SORIN $10,355.00 $10,950.00 South Bend Regular Me, 6. NEW BU j. Co: elopment Commission - June 14, 1985 (Copt.) Martha I. Durski K.C. Construction Co. 130 N. College Dale & Ellen Baker K.C. Construction Co. 114 N. College Mrs Kolata noted that the loan for Dale and Ellen Baker, 1142 N. College, was a new item added to the agenda with Con fission approval. Mr. Donoho asked what the kitchen sink it zed in the amount of $2,000 for 1305 N. Col eae would include. Mrs Kolata stated that it included the base cabinets, the wall hung cabinets and the coLuitertop. Upot a motion made by Ms. Auburn, seconded by Mr. Combs and unanimously carried, the Corriqussion approved proposals and loans in corniection with the Section 312 Loan Program as fisted above. k. Co fission a rova No. 742 approving of Redevelopment f Dec r 31. 1985. sted for Resolution salaries for the Mrs Kolata explained that Resolution No. 742 would set the salaries in accordance with the 2.5 City pay raise that would go into affect July 1, 1985. Upon a motion made by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Conpission approved Resolution No. 742 approving salaries for the Department of Redevelopment for July 1, 1985 through Decomber 31, 1985. Mrs. Ko ata reported that Sheffer's Advertising is having an open house today showing their newly rennovated building on Colfax Avenue. -24- $ 8,102.60 $ 8,870.52 $ 8,650.00 $ 9,450.00 COMMISSION APPROVED PROPOSALS AND LOANS IN CONNECTION WITH THE SECTION 312 LOAN PROGRAM AS LISTED ABOVE COMMISSION APPROVED RESOLUTION NO. 742 APPROVING SALARIES FOR THE DEPARTMENT OF REDEVELOPMENT FOR JULY 1, 1985 THROUGH DECEMBER 31, 1985 PROGRESS REPORTS South Bend ] Regular Mee, E:160fiffmi Q elopment Commission - June 14, 1985 MEETING The ne# Regular Meeting of the Commission will be held on Friday, June 28, 1985 at 10:00 a.m. There the C the m the m The m no further business to come before ion, Mr. Donoho made a motion that be adjourned. Ms. Auburn seconded and it was unanimously carried. was adjourned at 11:20 a.m. , Pres-ident °°�ro Z(:5n R. 066v p NEXT COMMISSION MEETING