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HomeMy WebLinkAboutRM 06-28-85SOUTH BEND REDEVELOPMENT COMMISSION REGULAR SCHEDULED MEETING June 28, IQ A5 10:00 a.m. Presiding 0 ficer: Mr. F. Jay Nimtz President 1. ROLL CA Members Members Legal Cc 2. 3. Bureau News Others: 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: 1: Mr. Michael Donoho, Assistant Secretary Ms. Eugenia Schwartz Staff: Mr. Jon R. Hunt, Executive Director Mrs. Ann Kolata, Executive Deputy Director Ms. Hedy Robinson, Econ. Dev. Specialist Ms. Denise Sullivan, Office Manager Housing Staff: OF MINUTES Ms. Mary Richmond, Project Director Mr. Ted Leverman, Project Director Ms. Mr. Mr. Mr. Ms. Mr. Mr. Jeanne Derbeck, South Bend Tribune Gary Sieber, WNDU -TV Scott Brink, WNDU -TV Norm Stangland, WSBT -TV Beth Martin, WZZP Radio Mark Schirippa, WSJV -TV Dick Maginot, WSBT Radio Ms. Glenda Rae Hernandez Upon a motion made by Mr. Piasecki, seconded by Ms. Auburn and unanimously carried, the minutes of the Regular Meeting of Friday, June 14, 198 were approved. OF CLAIMS Upon a motion made by Ms. Auburn, seconded by Mr. Combs and unanimously carried, the Commission formally approved the claims submitted June 20 and June 26, 1985, and ordered checks dated June 26 and July 3, 1985 to be r leased. MINUTES OF THE REGULAR MEETING OF FRIDAY, JUNE 14, 1985, WERE APPROVED CLAIMS SUBMITTED JUNE 20 AND JUNE 26, 1985, WERE FORMALLY APPROVED AND CHECKS DATED JUNE 26 AND JULY 3, 1985, WERE ORDERED TO BE RELEASED South Bend I Regular Meei 3. APPROVAI 91 development Commission .ng - June 28, 1985 OF CLAIMS ( font . ) EAST BAI 4K Seifer Safe & Lock, Inc. $ 59.50 Abstract & Title Corporation 249.00 Total $ 308.50 P.E.A. R -66 CD Publications $ 16.00 Compute land 463.13 General Fund 5.92 Jon R. Hunt 259.64 Indiana Bell Communications 296.69 Makiels i Art Shop 53.20 Gretchem Matthews 161.90 Schilli g's Sales Co., Inc. 24.51 South nd Tribune 42.86 St. Joseph Bankcard Division 67.61 Coffee Time Services 26.70 SCL Communications 41.55 Servoma ion Corp. 293.12 Am ericam Institute of Real Estate Appraisers 550.00 Aslan Press 17.00 Kaplon's Nursery & Greenhouse 305.00 Dictaphone 530.00 Abstract & Title Corporation 100.00 Business Communication Center 620.00 Century Center Board of Managers 27.50 General Fund - Legal Services 2,200.43 Indiana Bell Communications 628.10 C.E. Lee Company 279.56 Luann M rris - Petty Cash 134.89 Travel re 638.00 Indiana Regional Minority Supplier Development Council 250.00 Star Temporary Services, Inc. 294.50 Payroll Fund: 5 -27 thru 6 -7 -85 10,019.49 Payroll Fund: 6 -8 thru 6 -21 -85 10,169.43 Total $28,516.73 Grand Total $28,825.23 There were no communications. -2- THERE WERE NO COMMUNICATIONS South Bend I Regular Meei 5. OLD BUS: a. 6. NEW elopment Commission - June 28, 1985 for a proposal oan in jeo Program in accordance with the recomiendation from the Bureau of Housing. Contractor Boruiie Rae Martsolf Hanks Enterprise 927 E. Sorin This item was continued from the June 14, 198"), Commission meeting to allow the staff to report on the status of the possible ref nancing of Ms. Martsolf's land contract. Ms. Mary Richmond reported that lst Source Ban], is reviewing an application from Ms. Martsolf to finance a loan for a mortgage on the property located at 927 E. Sorin, but haven't made a recommendation at this time. Mr. Hunt asked that the Conmission continue this, item until the next regularly scheduled ComAssion meeting for a report on the possible refinancing. The Commission continued the proposal and loan in connection with the Affordable Loan Program for Bonnie Rae Martsolf, 927 E. Sorin, until the next regularly scheduled Commission mee inq. a. Co ssion a and I grant in oval requested for a propos nnection with the Emergency in accordance with the from the Bureau of Housing. Contractor $14,560.00 $11,400.00 Maurine Allen V.V. Engle Construction Co. 504 E. Dubail Upoii a motion made by Mr. Combs, seconded by Mr. Piasecki and unanimously carried, the Co, ' ssion approved a proposal and grant in co ction with the Emergency Repair Program as isted above. Qcc ITEM 5a WAS CONTINUED UNTIL THE NEXT REGULARLY SCHEDULED COMMISSION MEETING $1,200.00 COMMISSION APPROVED A PROPOSAL AND GRANT IN CONNECTION WITH THE EMERGENCY REPAIR PROGRAM AS LISTED ABOVE South BE Regular 6. NEW 0, C. end Redevelopment Commission Meeting - June 28, 1985 BUSINESS (Continued) approval requested for a contract Comnission With Denisa Lynk, 813 S. Meade, in the amoun of $200.00 in connection with the stead /Section 312 Loan Pr ram in H accordance with the recommendation from the Bureau of Housing. Hunt explained that the property in Mr. question is a Homestead unit that involves a Section 312 loan previously approved by the ComrLission. In connection with the 312 loan there was some extra work to be done by the Homesteader, Denisa Lynk. Ms. Lynk requeste to take on the responsibility of completing required painting herself. This contract formalizes that the Commission is paying for the paint and requires Ms. Lynk to meet certain performance standards required of al Bureau of Housing contractors. Upon a motion made by Ms. Auburn, seconded b. Mr. Combs and unanimously carried, the ComrLission approved a contract with Denisa Ly , 813 S. Meade, in the amount of $200.00 in connection with the Homestead /Section 312 Loai i Program. Corriiission a roval requested for Resolution No. 743 approving an application for real property tax deduction. Hedy Robinson gave the staff report Ms. relating to the application for real propert, tax deduction for the Old South Bend Lathe Works project of Mr. T. Brooks Brademas. It will be a mixed use project staged over a period of five years. The proposed project involves a number of historically significan stnictures containing 275,000 square feet on approximately five acres. The property is ti be redeveloped to include multi - family renta and sales housing, restaurants, a motel, speciality shops, a marina and offices. The total project is estimated to cost $10,000,000. The project will create 750 nei permanent full -time jobs, representing a new annual payroll of $9,000,000 and will marnta: 150 existing permanent full -time and 50 existing permanent part -time jobs with an annual payroll of $2,500,000. -4- in COMMISSION APPROVED A CONTRACT WITH DENISA LYNK, 813 S. MEADE, IN THE AMOUNT OF $200.00 IN CONNECTION WITH THE HOMESTEAD /SECTION 312 LOAN PROGRAM South Bend edevelopment Commission Regular Meeting - June 28, 1985 6. NEV BUSINESS (Cont.) c. wnT-lnuea... Mr. Hunt reminded the Commission that only tax abatement petitions within a Tax Incremental Finincing area appear before the Commission witli final approval of the petition by the Cominon Council. Upo a motion made by Mr. Piasecki, seconded by 4s. Auburn and unanimously carried, the Comnission approved Resolution No. 743 app oving an application for real property tax 1 ed for Resolution re -use value of lan4 in the South Bend Central Development Mr. Hunt stated that Items d, e and g were all related and would be discussed at the same time. Mr. Hunt explained that the parcel in question is Parcel El-1 commonly referred to as the Mill Race site. A proposed re -use valuation of $300,000 has been established for the parcel. The proposed re -use is residential and mixed use. The predominent use would be residential with apartments and/or condominium combination. The Bid Specifications and Design Considerations call for a minimum number of 150 residential units with a minimum height of two stories above groimd level. The City of South Bend will re in an easement along the St. Joseph River. Any development must make full use of the site although construction can be phased. All of the provisions of the South Bend Central Development Area Plan recently adopted by the Co ssion would have to be met. The design considerations are not binding but offer suggestions as to how the site might be developed. They are included with the bid sDecifications. Mr. Hint explained that there has been interest in the East Bank area and the Mill Race site. By putting the parcel up for public bid the Commission will be able to test what interest there may be in the site. -5- COMMISSION APPROVED RESOLUTION NO. 743 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION South Bend Regular Me 6. NEW BU d. Co elopment Commission - June 28, 1985 (Cont.) Upom a motion made by Ms. Auburn, seconded by Mr. Combs and unanimously carried, the Commission approved Resolution No. 744 approving the fair re-use value of land in the South Bend Central Development Area. e. C ssion approval requested for Bid Specifications and Desi n Considerations for Parcel El -1 in the South Bend Central Dev6lopment Area. Upom a motion made by Ms. Auburn, seconded by Mr. Combs and unanimously carried, the Commission approved Bid Specifications and Design Considerations for Parcel E1 -1 in the South Bend Central Development Area. f. Commission approval requested for contract with S rin sted Incorporated for financial con ultina services. Mr. Hunt explained that the staff has been working on the merger and expansion of the three redevelopment areas that are now co ined into the South Bend Central Development Area. Part of that strategy included assessing the possibility of a tax incremental financing bond for activities wit1iin the new Redevelopment area. The staff has taken this process as far as possible with our expertise and now require some professional assistance within the financial consulting areas. The staff is recommending that the Commission approve a contract with Spr ngsted Incorporated for financial consulting services associated with the tax increment financing possibilities. By moving int the consulting services agreement it will allow the Commission to make a decision as to whether a tax incremental bond is feasible and should be pursued. Ms. Schwartz outlined the scope of services provided by the contract. She explained that the selection was made from a number of public finincial advisory firms who had expertise within the public financing area. The various aro ps were contacted and asked to submit COMMISSION APPROVED RESOLUTION NO. 744 APPROVING THE FAIR RE -USE VALUE OF LAND IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA COMMISSION APPROVED BID SPECIFICATIONS AND DESIGN CONSIDERATIONS FOR PARCEL El -1 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - June 28, 1985 6. NEW BUSINESS (Cont.) f. Continued... their qualifications to the Department. Based on those qualifications several firms were selected and asked for specific proposals. Spr ngsted Incorporated was selected among those firms based upon their experience, pro essional approach, reputation, and their pro sal as a whole. Springsted's res nsibilities will include looking at the ov all financial resources for the red velopment district in the future, identifying known sources of funds, determinating the amount that will be available for the Commission based on what is knam specifically now, and a reasonable projection of income including increment based on current projects that are underway or coming up. They will also project future tax revenues as existing tax abatements decrease over the next few years. Springsted will specifically look towards the feasibility of using various financial tools, including tax increment financing, in the South Bend Central Development Area. They have been asked to look at a tax incremental financed revenue bond, rather than one that is also dependant upon the general obligation of the Redevelopment district. If their work does not lead towards a bond issue that is actually sold, because of the fact that this is the first tax increment financing bond in Indiana, the have agreed not to charge for the first fifteen hours of the services they will pro ide. They have also agreed to a cap on the balance of their services, and funds have beem appropriated to pay for that cap in the event that bond issue is not sold. If a bond issue is sold, their services will be reimbursed out of the proceeds of the bond issue. Upon a motion made by Mr. Combs, seconded by Ms. Auburn and unanimously carried, the Comnission approved a contract with Springsted Incorporated for financial consulting g. Con!4ssion authorization requested to publish Not ce of Intended Sale of Parcel El -1 in the -7- COMMISSION APPROVED A CONTRACT WITH SPRINGSTED INCORPORATED FOR FINANCIAL CONSULTING SERVICES South Bend Regular Me, C:PNERM elopment Commission — June 28, 1985 (Cont.) g. Con inuea... South Bend Central Development Area with publication dates to be July 5 and July 12, 1985, and receipt of bids to be at 10 :00 a.m. on August 19, 1985_ Upon a motion made by Mr. Combs, seconded by Ms. Auburn and unanimously carried, the Comnission authorized the staff to publish Notice of Intended Sale of Parcel El -1 in the South Bend Central Development Area with publication dates to be July 5 and July 12, 1981"), and receipt of bids to be at 10:00 a.m. on August 19, 1985. h. C 'ssion approval requested for a contract with Community Development for Redevelopment Mr. Hunt stated that Item h and i were related items. Mr. Hunt explained that the Common Co cil has approved an additional appropriation for the Department as part of the Community Development reprogramming. This contract will amend the amount that Redevelopment would be allowed to spend and clam-up our 1984 contract. It is an increase of $10,852 which finalize costs from 1984. Upon a motion made by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the Coranission approved a contract with Community Development for Redevelopment Administration Budget (CD84 -601). i. Coiniission approval requested for a contract with Community Development for Redevelopment Adrranistration Budget (CD85 -601). Mr. Hunt explained that this contract will take Redevelopment through 1985. The Common CoLuicil has taken action to appropriate $128,500 for the Department because of some extraordinary expenses that have and will be inairred in terms of projects related to the do town, the baseball project and general economic development functions. Sane specific items would be the Springsted contract; the tax increment financing bond costs; -8- COMMISSION AUTHORIZED THE STAFF TO PUBLISH NOTICE OF INTENDED SALE OF PARCEL E1 -1 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA WITH PUBLICATION DATES TO BE JULY 5 AND JULY 12, 1985 AND RECEIPT OF BIDS TO BE AT 10:00 A.M. ON AUGUST 19, 1985 COMMISSION APPROVED A CONTRACT WITH COMMUNITY DEVELOPMENT FOR REDEVELOPMENT ADMINISTRA- TION BUDGET (CD84 -601) South Bend Regular Me 6. NEW BU i. Co. 7. elopment Commission - June 28, 1985 (Cont.) appraisals, survey and title work associated with acquisition within the downtown including the baseball project; monies associated with the facade study which has been completed by Hur t- Kenrick Associates; and a $25,000 match to the Downtown Technical Advisory Committee relating to a project management possibility for the downtown. Upon a motion made by Mr. Piasecki, seconded by 14s. Auburn and unanimously carried, the Comnission approved a contract with Community Development for Redevelopment Administration Budget (CD85 -601). Mr. Hunt reported that the barricades are going up on the Teachers Credit Union. He also e ressed thanks to several staff members in particular Denise Sullivan for the fine work she did on the extensive minutes of the June 14th Commission meeting establishing the record for the Redevelopment merger and expansion. He also expressed thanks to Eugenia Schwartz and Rich Hill for the wcrk they did on the selection of the financial consultants for the tax incremental financing project and the Springsted contract. 8. NEXT COMMISSION MEETING a The ne Regular Meeting of the Commission will be held on Friday, July 12, 1985 at 10:00 a.m. Mr. Nimtz appointed Mr. Piasecki as the presiding officer for the next regular Commission meeting scheduled for July 12, 1985, since Mr. Nimtz and Ms. Auburn will be unable to attend that meeting. There being no further business to come before the Co scion, Mr. Piasecki made a motion that the meeting be adjourned. Ms. Auburn second the motion and it was unanimously MIC COMMISSION APPROVED A CONTRACT WITH COMMUNITY DEVEMPMENT FOR REDEVELOPMENT ADMINISTRA- TION BUDGET (CD85 -601) NEXT COMMISSION MEETING pall-we" iWak South Bend edevelopment Commission Regular Mee ing - June 28, 1985 9. ADJOURN T ( font . ) carried The meeting was adjourned at 10:35 a.m. 32'r-8- i 1 9 Roman J. Pi secki Secretary on R. Hunt, Executiv Director -10-