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HomeMy WebLinkAboutRM 05-23-86SOUTH BEND REDEVELOPMENT COMMISSION REGULAR SCHEDULED MEETING May 23, 198 10:00 a.m. Presiding Officer: Mr. F. Jay Nimtz President 1. ROLL C Members Present: Members Absent: Legal C unsel: Redevel anent Staff: Bureau Of Housing Staff: News Media: Others: 1200 County -City Building 1227 W. Jefferson Boulevard South Bend, Indiana 46601 Mr. F. Jay Nimtz, President Ms. Paula N. Auburn, Vice - President Mr. Roman J. Piasecki, Secretary Mr. Sandy Combs, Member Mr. Michael Doncho, Assistant Secretary Ms. Eugenia Schwartz Mrs. Ann Kolata, Executive Deputy Director Mr. Rick Pitts, Econ. Dev. Specialist Ms. Denise Sullivan, Office Manager Mr. Ted Leverman, Acting Director Ms. Jeanne Derbeck, South Bend Tribune Ms. Daniele Dyer, WAOR Radio Mr. Dick Maginot, WSBT -TV Ms. Glenda Rae Hernandez Mr. Richard Treptow, Springsted Incorporated 2. APPROVAL. OF MINUTES Upon a inotion made by Ms. Auburn, seconded by Mr. Co s and unanimously carried, the minutes of the Regular Meeting of Friday, May 9, 1986 were ap roved. 3. APPROVAL OF CLAIMS Upon a motion made by Mr. Combs, seconded by Mr. Pia ecki and unanimously carried, the Commission formally approved the claims submitted May 21, 1986, and ordered checks dated June 1, 1986 to be released. P.E.A. -66 Business Communication Center $ 732.00 General Fund 193.94 Gene's Camera Store 18.80 COMMISSION APPROVED MINUTES OF THE REGULAR MEETING OF FRIDAY, MAY 9, 1986 COMMISSION FORMALLY APPROVED CLAIMS SUBMITTED MAY 21, 1986 AND ORDERED CHECKS DATED JUNE 1, 1986 TO BE RELEASED South Bend Redevelopment Conission Regular Meeting - May 23, 1986 3. APPROV OF CLAIMS (Cont. Greenw Press 37.64 Makiels i Art Shop 84.30 Service Merchandise 29.97 Payroll Fund: 4 -12 thru 4 -25 -86 12,652.80 Total $ 13,749.45 RED PMENT DISTRICT BONDS 1972 2P T. George Podell & Company $ 497.95 Rieth-RLley Construction Co. 10,900.00 Ziolkow ki Construction 120,666.00 Total $132,063.95 Grand Total $145,812.90 a. Letter from South Bend Public Transportation Corporation relating to appointments to the Joint Development Committee. Mrs Kolata read the following letter for the record: May 13, 1986 Mr. Jon Hunt Executive Director South Bend Redevelopment Commission County-City Building South Bend, IN 46601 Dear Jon: I am writing to inform you of the appointment of representatives to the Joint Development Committee (JDC) as per the contract for the sale of land between the Commission and TRANSPO, as amended. Mr. John Stancati, Board Member, and myself were appointed by the acting chairman as TRANSPO's representatives to the JDC. This action took place at yes erday's Regular Board Meeting at which tim the amendment to the contract for sale of Ian was also approved by the Board. -2-� LEPER FROM SOUTH BEND PUBLIC TRANSPORTATION CORPORATION RELATING TO APPOINTMENTS TO THE JOINT DEVELOPMENT COMMITTEE WAS READ INTO THE RECORD South Bend Regular Mee 4. COMMUNI a. On fo th th Mr. was Ms. for set Mrs elopment Commission - May 23, 1986 NS.(Cont.) )ehalf of Mr. Stancati and myself, we look lard to working with the other members of JDC and to continued cooperation between Commission and TRANSPO. Sincerely, John R. Grew General Manager Nimtz noted that the letter from Mr. Grew received and placed on file. Schwartz asked that the Mayor be requested himself or his appointee as Chairman to up an initial meeting of that Committee. Kolata stated that the Redevelopment `f will make that request. 5. OLD BUSINESS There was no old business. 6. NEW BUSINESS a. Con4assion approval requested for ro and rants in connection with the Emerc in ance with the Bureau of Hou��..� . Contractor s Mau dine Ross Michiana Sewer Service 721 W. Jefferson Josephine Pruett Burns Electric Service 1402 Lincolnway West Comiie Brazeau Burns Electric Service 1922 Magyar Court Upom a motion made by Ms. Auburn, seconded by Mr. Piasecki and unanimously carried, the Co4ission approved proposals and grants in contection with the Emergency Repair Program as hsted above. -3- THERE WAS NO OLD BUSINESS $375.00 $160.00 ! 11 COMMISSION APPROVED PROPOSALS AND GRANTS IN CONNECTION WITH THE EMERGENCY REPAIR PROGRAM AS LISTED ABOVE South Bend edevelopment Commission Regular Mee ing - May 23, 1986 6. NEW BUS NESS (Cont.) b. Comnission approval requested for a bid and to in connection with the Rental Rehab Loan Pr ram in accordance with the recommendation fron the Bureau of Housing. Name Contractor Proposal Loan Dean Hunt Richard I. Engle $5,906.00 $3,200.00 (Federal) 10315 California $3,200.00 (Private) Mrs Kolata noted for the record that Dean Hun is of no relation to Jon Hunt, Director of Redevelopnent. Upon a motion made by Mr. Piasecki, seconded COMMISSION APPROVED A BID by Mr. Combs and unanimously carried, the AND LOAN IN CONNECTION WITH Comaission approved a bid and loan in THE RENTAL REHAB LOAN PROGRAM coniection with the Rental Rehab Loan Program AS LISTED ABOVE as fisted above. c. C ssion approval requested for Certificate of Coirpletion for Crescent Electric Realty cor756ration. Mrs Kolata explained that the Commission had previously sold a parcel of land in Monroe Park to Crescent Electric Realty Corporation. Crescent Electric has completed the imp ovements on the building as required by the Commission's contract for sale of land. This Certificate indicates that they have met all of those requirements in the contract. Upoii a motion made by Ms. Auburn, seconded by COMMISSION APPROVED A Mr. Piasecki and unanimously carried, the CERTIFICATE OF COMPLETION Co ssion approved a Certificate of FOR CRESCENT ELECTRIC REALTY Co letion for Crescent Electric Realty CORPORATION Cor ration. d. Comrission approval reauested for Resolution No. 775 authorizing the issuance of bonds on parity with the City of South Bend Redevelopment District Tax Increment Revenue Bonds of 1985 for the purpose of raisin mon( for property acquisition and redevelopment ii the South Bend Central Development Area. -4- South Bend edevelopment Commission Regular Meeting - May 23, 1986 6. NEW BUS$NESS (Cont.) d. Continued... Mr. Richard Treptow, representing Springsted Incorporated as the Commission's financial consultant, presented the proposed bond issue. Mr. Treptow stated that the staff identified approximately $2,000,000.00 in project work in the South Bend Central Development Area. Mr. Treptow is recommending that these project costs be financed with a bond issue in the amoimt of $2,565,000.00. Mr. Treptow explained the sources and uses of funds surffiary to accomplish the projects. Mrs Kolata identified the projects to be funded by the TIF bond as the following: $140,000 to extend Seitz Park improvements including a parking lot, an access road and closing off Ginz Avenue to cars but keeping it operi to pedestrian traffic; $700,000 to continue public works improvements along Michigan Street into the 100 South and 100 North blocks; $500,000 for public works improvements along Niles Avenue between Jefferson and Cedar Streets to include angle parking, the purchase of property needed to widen the street, new curbs and sidewalks, and street trees; $100,000 for the extension of the Riverbank Trail System along the easements adjacent to Raintree Point Apartments and the South Bend Orthopedic Center properties; $360,000 for acquisition of property in the East-, Bank if determined allowable by federal legislation being reviewed by Congress; $100,000 for rehabilitation of the exterior of the State Theater to save the building from further deterioration; and, $100,000 for general public works improvements for streets, cur s, alleys or any type of eligible imp ovement within the development area. Mr. Treptow stated that Springsted Incorporated has certified that the tax increment revenue estimated to be received in each year bonds are outstanding is estimated to be at lease 150% of the estimated principal and interest requirements for each year during the terms of both the 1985 and 1986 tax inc ement bond issues. He also stated that Spr ngsted assumed that $135,000 of the new -5- South Bend edevelopment Commission Regular Meeting - May 23, 1986 6. NEW BUSINESS (Cont.) d. Continued... issue will be used for capitalized est, which in effect, reduces the debt ce requirements during the first three of the 1986 bond issue. Mr. Treptow identified two unresolved issues that may reduce the amount of tax increment available to make payments on the bonds. The Se issues relate to the handling of the State tax replacement credit as it applies to tax allocation areas and the treatment of assessed valuation growth which is due to the reduction in abatement granted prior to the creition of tax allocation areas. Upon a motion made by Ms. Auburn, seconded by Mr. Combs and unanimously carried, the Comriission approved Resolution No. 775 authorizing the issuance of bonds on parity with the City of South Bend Redevelopment District Tax Increment Revenue Bonds of 1985 for the purpose of raising money for property accpiisition and redevelopment in the South Bend Central Development Area and further autliorizing publication and posting of notice of dete. 'nation to issue such bonds, with publication to take place May 23 and May 30, 1986. e. Fil$ng of Resolution No. 776 ation Resolution One City of South evelopment District Tax Increment Bonds of 1986, and authorizing ion of notice of proposed supplementa ation and setting a public hearing on thelproposed supplemental appropriation. Mrs Kolata noted that Resolution No. 776 is not being acted upon at this time but is being filed with the Commission for action at the June 13th Commission meeting. The Commission is also being asked to set June 13, 1986 as the date of the public hearing on the proposed appropriation and to authorize publication and posting of notice of the proposed appropriation of bond proceeds and public he ing with publication date to be May 30, 1986. -6- COMMISSION APPROVED RESOLUTION NO. 775 AUTHORIZING THE ISSUANCE OF BONDS ON PARITY WITH THE CITY OF SOUTH BEND REDEVELOPMENT DISTRICT TAX INCREMENT REVENUE BONDS OF 1985 FOR THE PURPOSE OF RAISING MONEY FOR PROPERTY ACQUISITION AND REDEVELOPMENT IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Regular Mee 6. NEW BUS e. Con Upo by coin No. pub of elopment Commission - May 23, 1986 (Cont.) a motion made by Mr. Piasecki, seconded t. Combs and unanimously carried, the fission authorized the filing of Resolution 776, set June 13, 1986 as the date of the is hearing on the proposed appropriation pond proceeds and authorized publication posting of the notice of public hearing erning the proposed appropriation of bond eeds with the publication date to be May 30, 1 1986. f. Re rt on bid received at May 19, 1986 bid o in Ric Pitts noted that the Commission received a bid on three of the four parcels being offered in Monroe Park. The bid was received fron South Bend Heritage Foundation. The bid amo is were equal to the minimum offering price previously established. South Bend Heritage submitted a loo performance guarantee. The proposed use is new construction for single family residential ho s with two stories, basement and attached garage. The selling price will be in the range of $65,000. The development plan calls for the construction of one spec home which wilL serve as a model to generate the sale of two additional homes. The project schedule cal Ls for construction to begin on the first he in mid -June to be completed by the end of Au gist. The tentative schedule is to begin construction. on the two additional homes by the end of 1986. The bidder's redevelopment ex p=ence is very substantial. Mr. Pitts noted that South Bend Heritage is forming a pa nership with Monroe Park Development Co ration. They are looking at financing fran three sources: South Bend Heritage Fo dation, Community Development Block Grant funds, and a construction loan from Valley American Bank. The staff recommendation is favorable. Mrs Kolata noted that South Bend Heritage did sta e that they intend to submit a bid on the fourth lot if successful in purchasing the adjacent privately owned lot. -7- COMMISSION AUTHORIZED THE FILING OF RESOLUTION NO. 776, SET JUNE 13, 1986 AS THE DATE OF THE PUBLIC HEARING ON THE PROPOSED APPROPRIATION OF BOND PROCEEDS AND AUTHORIZED PUBLICATION AND POSTING OF -THE NOTICE OF PUBLICHEARING CON- CERNING THE PROPOSED APPRO- PRIATION OF BOND PROCEEDS WITH PUBLICATION DATE TO BE MAY 30, 1986 South Bend Regular Me, 6. NEW BU f . Co; elopment Commission - May 23, 1986 (Cont.) Mr. Steve Luecke, representing South Bend Heritage Foundation, stated that they are excited about the project and eager to begin. He Eurther stated that they are pleased to be wor ing with the Commission and hope that they fav rably accept their bid. Mr. Nimtz disqualified himself from voting as he is a member of the South Bend Heritage Fo dation Board. Ms. Auburn assumed the Upon a motion made by Mr. Piasecki, seconded by 14r. Combs and unanimously carried, the Comnission accepted a bid received from South Bend Heritage Foundation on May 19, 1986 related to the sale of parcels in Monroe Park and authorized the President and Secretary to execute necessary documents. Mr.INimtz resumed the Chair. g. Commission Lapproval requested to hire William Meehan Jr., Coldwell Banker Anchor Real Estate, as a real estate agent for the L. Keen Mr. Pitts explained that the Commission advertised to receive proposals on May 5, 1986 for real estate broker services to obtain a buyer for the L. Keen building. No proposals were received. On May 8th a proposal was received from Coldwell Banker Anchor Real EstAte. Their proposal met all the minimum qualifications required by the Commission. In addition, Coldwell Banker submitted a promotional schedule, their commission set at 8% with $1,000 minimum fee, and a 180 day listing agreement. It is the staff's reccumendation to accept this proposal. The Co ssion will be the only party allowed to negotiate the minimum offering price pre iously set. Mrs Kolata noted that it has been more than 90 days since no bids were received for the L. Keen building, therefore the Commission is abl to sell the building for less than the minimum offering price if desired. -8- COMMISSION ACCEPTED A BID RECEIVED FROM SOUTH BEND HERITAGE FOUNDATION ON MAY 19, 1986 RELATED TO THE SALE OF PARCELS IN MONROE PARK AND AUTHORIZED THE PRESIDENT AND SECRETARY TO EXECUTE NECESSARY DOCUMENTS South Bend Regular Me 6. NEW elopment Commission - May 23, 1986 (Cont.) g. uonTinuea... Upon a motion made by Mr. Piasecki, seconded by 14s. Auburn and unanimously carried, the Commission accepted the proposal from William Meehan Jr., Coldwell Bank Anchor Real Estate, as a real estate agent for the L. Keen bui ding. 7. PROGRES$ REPORT COMMISSION ACCEPTED THE PROPOSAL FROM WILLIAM MEEHAN, JR., COLDWELL BANK ANCHOR REAL ESTATE, AS A REAL. ESTATE AGENT FOR THE L. KEEN BUILDING Mrs. Ko ata reported that the Department's PROGRESS REPORTS 5 198 ul Report has been completed and is availab e for distribution. Mrs. Ko ata also reported that the Department has co-sponsored the Neighborhood Business District Development Conference held on May 21 -23 at Century Center in conjunction with the National Center for Urban Ethnic Affairs. The con erence was going very well and will be wrapped up at about 12:00 noon. Mr. Ni z noted that the Studebaker National Museum received a donation from S. Ray Miller in the immunt of $100,000 for the building and facade of the Studebaker Museum. 8. NEXT CC94MISSION MEETING The nex Regular Meeting of the Commission NEXT COMMISSION MEETING will be held on Friday, June 13, 1986 at 10:00 a.m. �111A There bAng no further business to cane before ADJOURNMENT the Comnission, Mr. Combs made a motion that the mee ing be adjourned. Mr. Piasecki seconded the motion and it was unanimously carried The meeting was adjourned at 10:45 a.m. 7. Jay Nimt Presiavt Ann E. Kolata, ecutive Deputy -9-