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Home My WebLink AboutRM 01-10-86January 10, 10:00 a.m. Presiding 0 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR SCHEDULED MEETING 1986 ficer: Mr. F. Jay Nimtz President 1. ROLL Members Present: Members Absent: Legal C unsel: Redevel ment Staff: 2. Bureau �f Housing Staff: News Media: Others: a. IN C. OVAL OF MINUTES 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 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 Ms. Eugenia Schwartz Mr. Jon R. Hunt, Executive Director Mrs. Ann Kolata, Executive Deputy Director Ms. Hedy Robinson, Econ. Dev. Specialist Ms. Denise Sullivan, Office Manager Ms. Janet Holston, Director Ms. Jeanne Derbeck, South Bend Tribune Ms. Judy Peters, WSBT -TV Mr. Gary Sieber, WNDU -TV . Ms. Beth Martin, WZZP Radio Ms. Glenda Rae Hernandez Mr. John Boyer Mr. James M. Miller Upom a motion made by Ms. Auburn, seconded by Mr. Piasecki and unanimously carried, the minutes of the Rescheduled Regular Meeting of Friday, December 20, 1985 were approved. Upon a motion made by Mr. Piasecki, seconded by fir. Nimtz and unanimously carried, the minutes of the Special Meeting of Monday, Dec r 23, 1985 were approved. Upon a motion made by Mr. Piasecki, seconded by 14s. Auburn and unanimously carried, the minutes of the Special Meeting of Thursday, Deceffber 26, 1985 were approved. COMMISSION APPROVED MINUTES OF THE RESCHEDULED REGULAR MEETING OF FRIDAY, DECEMBER 20, 1985 COMMISSION APPROVED MINUTES OF THE SPECIAL MEETING OF MONDAY, DECEMBER 23,1985 COMMISSION APPROVED MINUTES OF THE SPECIAL MEETING OF THURSDAY, DECEMBER 26, 1985 South Bend 4edevelopment Commission Regular Mee ing -- January 10, 1986 2. APPROVALG OF MINUTES ( font . ) d. Upon a motion made by Ms. Auburn, seconded by Mr. Piasecki and unanimously carried, the minutes of the Annual Organizational Meeting of Thursday, January 2, 1986 were approved. • /e i • iu Upon a motion made by Ms. Auburn, seconded by Mr. Pia ecki and unanimously carried, the Commission formally approved the claims submitted January 3 and January 9, 1986, and ordered checks dated January 8 and January 15, 1986 to be released. DISTRICT BONDS 1972 Bean Welding, Inc. Howard Park Hardware Kaser S raker Construction Sinton Supply Con., Inc. St. Jos ph Bank & Trust Geyer Construction Trans Tech Electric Wagoner Excavating Co. Total P.E.A. Ball State University Business Systems, Inc. Federal Express Indiana Bell Telephone Indiana Bell Communications St. Jos ph Circuit Court C.E. Stafford Construction Marcia Ullrey - Petty Cash T. George Podell & Co., Inc. Equitable Real Estate Group PDH Office Products Petrolein Traders Corp. Hamiltoii Body Shop General Funds General Fund - Printing Schilli g's Sales Co. S.C.L. Communications National Parking Association Robert S. Means Co. $ 300.00 107.56 1,023.00 506.24 50.00 1,757.77 212.50 9,367.00 $13,324.07 $ 75.00 190.41 216.00 462.61 296.68 598.28 4,917.17 64.75 78.70 6.00 10.24 41.90 981.92 215.02 230.29 9.69 18.00 22.50 44.75 -2- COMMISSION APPROVED MINUTES OF THE ANNUAL ORGANIZATIONAL MEETING OF THURSDAY, JANUARY 2, 1986 APPROVAL OF CLAIMS Sout Regu 3. 4. 5. N h Bend Redevelopment Commission lar Meeting - January 10, 1986 APPROVAL OF CLAIMS (Cont.) 34.45 Jon Hunt South Bend Tribune 198.00 Tri-Courty News 213.23 Payroll: 12 -7 thru 12 -20 -85 13,054.81 Payroll: 12 -21 thru 1 -8 -86 11,281.30 Total $33,261.70 Grand Total $46,585.77 COMMUNICATIONS no communications. There were OLD BUSINESS no old business. There was NEW BUSINESS approval requested for Resolution a. CcrmLission No. 761 amending Proclaimer Certificate No. 2 for the South Bend Central Devel2piment Area and amending Resolution No. 753 relating to acqUisition of pK92arty within the South Bend Central Development Area b y eminent domain. Mrs Kolata explained that Resolution No. 761 deals with a property located in the area of the proposed multi -use stadium. The Co ssion previously set the fair market value for this property and authorized the staff to send a purchase offer based on that fair market value. When the appraisers attEmpted to perform an interior inspection o the house, they were unable to reach the property owner. Consequently, the appraisers per ormed an appraisal based on an exterior ins )ection. Prior to sending the purchase offer, but after the Commission set the fair mar et value, Hedy Robinson was able to con act the property owner to arrange for the appraisers to inspect the interior of the property. Therefore, the appraisers have updated their appraisal based on an interior inspection. The updated appraisal raises the price from $8,350 to $9,220. Based upon a favorable approval of the Commission, the staff will send the appropriate purchase of f er. -3- THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South B( Regular C. ►1.91. W 1 end Redevelopment Commission Meeting - January 10, 1986 BU INESS (Cont.) tinued... Co Upon a motion made by Mr. Piasecki, seconded by Ms. Auburn and unanimously carried, the Commission approved Resolution No. 761 amending Proclaimer Certificate No. 2 for th South Bend Central Development Area and am ding Resolution No. 753 relating to ac isition of property within the South Ben Ce tral Development Area by eminent domain. Ccnmission approval requested for Resolution No 762 designating the Studebaker Corridor Development Area, declaring the Studebaker Corridor Development Area to be blighted, approving a development plan and conditions under which relocation payments will be made and establishing an allocation area for puiposes of Tax Incremental Financing. Mr. Hunt explained that the staff has review thEt Studebaker Corridor, including the main co lex (both north and south buildings) and two sub - areas, for uses, conditions, occupants, vacancy rates, etc. Should they de ire, action taken today by the Commission w,o ld declare the Studebaker Corridor a redevelopment area. K. C. Pocius, Economic Development Specialist with Community Planning and Development, mad( a presentation to the Commission concerning the Studebaker Corridor. Mr. Pocius outline( the area on a map and explained that many of the buildings are deteriorated, underutilize( and obsolete when compared with modern prcduction facilities. rhE area identified is bounded generally by the Conrail railroad tracks to the north, an alley running between Main and Michigan Streets on the east, Indiana, more railroad tracks and Cotter Street to the south, and Zhapin and Prairie Avenues on the west. Thi: area encompasses approximately 220 acres. Th area has been divided into two sub -areas A a B based on the current land use. Area A is primarily characterized by vacant land, vac and/or deteroriating residences, some scattered commercial use, and lots of vacant -4- e id ant COMMISSION APPROVED RESOLUTION NO. 761 AMENDING PROCLAIMER CERTIFICATE NO. 2 FOR THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND AMEND- ING RESOLUTION NO. 753 RELATING TO ACQUISITION OF PROPERTY WITHIN THE SOUTH BEND CENTRAL DEVELOPMENT AREA BY EMINENT DOMAIN South Bend Regular MeE elopment Conmdssion - January 10, 1986 6. NEW BUSINESS (Cont.) b. Cor)tinued.. . Area B is characterized by vacant land, underutilized buildings, and some =rical and industrial use. Sore of the strengths of the Studebaker Corridor Development Area include the fact th t it is located in the center of St. Joseph Co ty and near several sub -areas of the South Bend Central Development, namely the Central Business District, Monroe Park and the East Bark. The area has good highway and rail access, and there is also high level utility se ice located nearby. The area is located within the Urban Enterprise Zone, and thus can take advantage of supportive services and incentives provided by the enterprise zone le islation and the Urban Enterprise Association. Finally, there are large amounts of vacant land as well as vacant buildings arEOS. The staff recommends the Studebaker Corridor be declared a redevelopment area and a tax allocation area so tax increment financinq will be available for the area. Disadvantages to the Studebaker Corridor Development Area are that there are many large, vacant, and deteriorated buildings,.a generally poor environmental condition throughout the area, and a rather poor in erior circulation system. TM major redevelopment strategy outlined in th development plan consists of three options which can be taken in conjunction with each other, incrementally or separately. The first op ion would be the creation of a light u industrial park in the area adjacent to the main plant complex. The second option would be the identification and development of key developable sites in the main plant area. Firally, the third option would be the re evelopment of the north section of the main plant complex. There are approximately five million square feet of building space. Mri Hunt noted that this is the first step in a onq revitaliation effort for the area. -5- South Bend Regular Me( 6. NEW BU; b. Coi elopment Commission - January 10, 1986 (Cont.) Upon a motion made by Mr. Piasecki, seconded by Ms. Auburn and unanimously carried, the Conimission approved Resolution No. 762 designating the Studebaker Corridor Development Area, declaring the Studebaker Co ridor Development Area to be blighted, approving a development plan and conditions under which relocation payments will be made, and establishing an allocation area for puiposes of tax incremental financing. Mr. Hunt thanked the secretaries, Cheryl Phipps, Ruth Tate and Denise Sullivan, for the gocd work and overtime done in preparing the St dcbaker Corridor Development Plan for the Co ssion's consideration. c. Ccamission approval requested for Resolution No. 763 approving an application for real prcperty tax deduction. ThE application for real property tax deduction is from East Race Properties for a pr ject located at 322 -330 East Colfax. Ms. He y Robinson gave the staff report on the pr ject. All information requested on the petition was supplied. The property is pr perly zoned for the proposed use. East Race Properties will rehabilitate the north building located at 322 -330 East Colfax Avenue, and develop the building into 20 luxury condominiums with enclosed parking and retail/commercial space. The project is intended to take advantage of and to augment the City's East Race Development Area efforts an to enhance the overall desirability of the East Race area. The estimated project cost $1,500,000. The petitioner estimates the after rehab value of the property will be $1,700,000. Estimated taxes to be abated over the ten year period is $347,835. Estimated taxes to be paid over the ten year period is $354,865. The project will create 35 new, permanent, full time jobs representing a new annual payroll of $350,000. Chair recognized Mr. John Boyer, the icant for East Race Properties. Mr. Boyer COMMISSION APPROVED RESOLUTION NO. 762 DESIGNATING THE STUDS AKER CORRIDOR DEVELOPMENT AREA, DECLARING THE STUDEBAKER CORRIDOR 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 South Ben0edevelopment Commission Regular Me ting - January 10, 1986 6. NEW BUSINESS (Cont!) c. c:ontinuea... pointed out the project site on an aerial photograph. The existing south building is planned for demolition. The north building consists of approximately 54,000 square feet. The plan is to develop a mixed -use condominium project which would include residential, cormercial and retail. The retail and copraercial portions would be on the first floor, along with secure inside parking for the owners of the residential condominiums. The residential condominiums will be located on the top two floors. The parking code requirements are being met. Presently all the conraercial and retail space is tentatively conmitted. He anticipates that there will be approximately six condominiums committed within the next 60 days. Construction bids ar being accepted for the first floor conmercial, retail and parking sections. Bids for the residential condominiums will be taken wi in approximately ten days. Construction is anticipated to begin with 30 -45 days. Mr. Hunt noted that the staff gave a favorable recommendation for the application for real property tax deduction based on the project being located within a redevelopment target Mr James Miller, attorney for the petitioner, lained that the taxing of the condominiums wi 1 be assessed as individual parcels. Upon a motion made by Mr. Piasecki, seconded by Ms. Auburn and unanimously carried, the Co ssion approved Resolution No. 763 approving an application for real property tax d. Ccnmission a roval requested for a Contract for Consulting Services with Albert Fout Dr vided to the Bureau of Housinq. Ms Holston explained that this is a renewal of Mr. Fout's contract from 1985 providing se ices for preparing cost books, Rental Re lab assistance, and preparing general conditions and standards. The hourly wage r ins at the 1985 amount of $7.98 with a not to exceed amount of $10,000. -7- COMMISSION APPROVED RESOLUTION NO. 763 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION South Bend Regular Me 6. NEW BU d. Cori elopment Commission - January 10, 1986 (Cont.) Upon a motion made by Ms. Auburn, seconded by Mr. Piasecki and unanimously carried, the CoiYmission approved a Contract for Consulting Se ices with Albert Fout provided to the Bu eau of Housing. Mr. Hurt reported that the Commission received the di tressing news and spoke with Mr. Tom Brademas regarding the fire at the Old Lathe Works rroject site. Mr. Brademas stated he had already moved his crew to the north buildi g to begin work on the motel /restaurant portion of the project. Mr. Brademas will have his architects and engineers review the fire demaged building and determine whether to re -use the existing building or rebuild the struct e. The Commission expressed their regret to Mr. Brademas for the setback in his projec due to the fire. 8. NEXT COMMISSION MEETING 0 The ne t Regular Meeting of the Commission will held on Friday, January 24, 1986 at 10:00 .m. There being no further business to come before the Coignission, Mr. Piasecki made a motion that the meeting be adjourned. Ms. Auburn seconded the motion and it was unanimously carried. The meeting was adjourned at 11:00 a.m. k % COMMISSION APPROVED A CONTRACT FOR CONSULTING SERVICES WITH ALBERT FOUT PROVIDED TO THE BUREAU OF HOUSING NEXT COMMISSION MEETING V • • i i V07 V� -- R. Hunt, Executive Director