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HomeMy WebLinkAboutRM 10-10-86October 10, 10:00 a.m. Presiding Of SOUTH BEND REDEVEIAPMENT COMMISSION REGULAR SCHEDULED MEETING 1986 ficer: Ms. Paula N. Auburn Vice President 1. ROLL CAI L Members Present: Members Absent: Legal Redeve Bureau c News Med Others: n � . Upon a Mr. C017 the Reg were al: 3. APPROVA P.E.A. Payroll Compute Cosmos Staff: Housing Staff: OF MINUTES 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Ms. Paula N. Auburn, Vice - President Mr. Roman J. Piasecki, Secretary Mr. Sandy Combs, Member Mr. Michael Donoho, Assistant Secretary Mr. F. Jay Nimtz, President Ms. Eugenia Schwartz Mr. Jon R. Hunt, Executive Director Ms. Cheryl Phipps, Office Manager Mr. K.C. Pocius, Urban Planner Ms. Hedy Robinson, Economic Dev. Specialist Ms. Ted Leverman, Acting Director Mr. James Wensits, South Bend Tribune Mr. Gary Seiber, WNDU -TV Ms. Leigh Karen Engelhardt Ms. Francis Kummeth Ms. Glenda Rae Hernandez Mr. Ernest J. Szarwark, Mastic Corporation Mr. Al Okerson, Mastic Corporation Mr. Gregorio Chavez, Original Foods Mr. Melvin Reed, Original Foods :)tion made by Mr. Piasecki, seconded by s and unanimously carried, the minutes of lar Meeting of Friday, September 26, 1986 roved. OF CLAIMS 66 (pay period from 8 -30 thru 9- 12 -86) -1- COMMISSION APPROVED MINUTES OF THE REGULAR MEETING OF FRIDAY, OCTOBER 10, 1986 $ 12,751.19 150.00 16.95 South Bend Redevelopment Comnission Regular Me ting - October 10, 1986 3. APPROV7,L OF CLAIMS (Cont.) P.E.A. R -66 Downtow. Research & Development Center Dun & Bradstreet Business Education Services Federal Experess Corp. General Fund Indiana Bell Telephone Indiana Business Magazine Ralph D Lauver Manpower Temporary Services P.D.H. Office Supplies Rick Pitts South nd Tribune Tri-Courty News Van Nos rand Reinhold Co. Woodstock Institute AmericanInstitute of Architects Service Corp James Bi.xler Brumi.ng City C1 rks Office Coffee Time Service Comm. Document Service Crain's Chicago Business Dictaphone Corp General Fund Hyatt Winton - Salem Indiana Bell Comm Makiels i Art Shop Manpower Temporary Service Petroleum St. Jos ph Bankcard Division Gene's Camera Shop loll-401 North erican Signs Lawson Fisher & Associates TOTAL 23.00 175.00 136.50 219.88 342.58 22.05 400.00 166.69 3.00 21.17 35.80 37.73 30.26 5.00 43.00 26.40 51.16 9.45 54.40 15.00 37.00 5.93 285.62 269.88 296.68 13.64 123.83 14.76 447.72 58.07 $ 16,304.34 500.00 1,251.10 $ 1,751.10 T.I.F. BONDS - 1985 Universal Painting Company $ 3,595.00 Peirce 8 Associates 2,800.00 TOTAL $ 6,395.00 -2- South Ben Regular M 3. APPROV T.I.F. Baker 4. edevelopment Commission ing - October 10, 1986 OF CLAIMS (Cont.) NDS - 1986 aniels � •j- Upon a motion made by Mr. Piasecki, seconded by Mr. Co s and unanimously carried, the Commission formally approved the claims submitted October 2 and October 9, 1986, and ordered checks dated October 8, and October 15, 1986 to be released. There were no communications. 5. OLD BUSINESS There was no old business. 6. NEW BUSINESS a. Connission and Grants roval requested for connection with the s accordance with the m the Bureau of Housing. Contractor Sha on Smith Michiana Sewer Service 815 Cottage Grove Gertrude Payne Townsend Construction 130 Liston Upo a motion made by Mr. Combs, seconded by Mr. Piasecki and unanimously carried, the Connission. approved proposals and grants in acc rdance with the Emergency Repair Program as isted above. -3- $ 15,893.40 $ 15,893.40 $ 40,343.84 COMMISSION FORMALLY APPROVED CLAIMS SUBMITTED OCTOBER 2 AND OCTOBER 9, 1986, AND ORDERED CHECKS DATED OCTOBER 8 AND OCTOBER 15, 1986 TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS $ 45.00 $2,500.00 COMMISSION APPROVED BIDS AND GRANTS IN CONNECTION WITH THE EMERGENCY REPAIR PROGRAM AS LISTED ABOVE South Bend Regular Me 6. NEW BUS b. Redevelopment Commission ting - October 10, 1986 NESS (Cont.) and lloans proval requested for p connection with the Af in accordance with the n from the Bureau of H is NaME Contractor Proposal Loan Maurine Allen B &C Construction $16,990.00 $ 8,800.00 504 E. Dubail Bobbie J. Woods Townsend Construction $24,567.00 $12,800.00 220 S. Franklin Jah gh Pearl Barbee B &C Construction $ 9,095.00 $ 4,800.00 1017 W. Oak Geo giana Wescott Plaia Construction $19,458.00 $10,050.00 1083 Woodward Herbert L. Johnson Townsend Construction $13,573.00 $10,600.00 614 (Euclid Upon a motion by Mr. Combs, seconded by Mr. Piasecki and unanimously carried, the Conuission approved proposals and loans in connection with the Affordable Loan Program as listed above. d. C ssion approval requested for Resolution No. 88 approving an application for real pro rty tax deduction for Mastic Division of Kous n, Inc. Mr. Szarwark explained Kousan, Inc.'s decision to retain Mastic Division's location in South Bend and to expand their facilities. They plan to spend $1.7 million on real property impr vements and $1.6 million on personal property improvements, creating 60 new jobs with an annual payroll increase of $1.2 million and retaining 234 existing jobs with an a ual payroll of $5.7 million. The expapsion will include a 125,000 s.f. expahsion to the existing -4- COMMISSION APPROVED PROPOSALS AND LOANS IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM South Bend Redevelopment Commission Regular Me ting - October 10, 1986 6. NEW BUSINESS (Cont.) d. Con - tinued. . structure, the replacement of a portion of the existing building, a renovation of its res arch and development facility, expansion and renovation of current office space, the addition of four new manufacturing lines, the upg ading of existing employee areas, and rel ted machinery and equipment expenditures. Ms.IRobinson read into the record the Department's review of the summarized All information requested on the petition was supplied. The property is properly zoned for the proposed use. A copy of the report from the Department of Code Enforcement is attached. The property is not located in an area designated as a Tax Abatement Impact Area by the South Bend Common Council. The property is located in a Tax Incremental Financing Allocation Area. The project will create 60 new, permanent full -time jobs, representing a new annual payroll of $1,200,000, and will maintain 234 existing permanent full -time jobs with an annual payroll of $5,700,000. Petitioner estimates the market value of the new equipment after installation is $2,700,000. It is estimated by the petitioner that the after rehabilitation market value of the property will be $2,600,000. Mr. Hunt noted that the project also involves move which has already been committed by the State of Indiana for the access road and infrastructure improvements. The grant application for that money is currently being -5- South E Regular 6. NEw d. e. f. send Redevelopment Commission Me ting - October 10, 1986 BUSINESS (Cont.) . Continued. Mr. Hunt also pointed out that the company an the union have worked out a labor agreement which is satisfactory to both and good for th co unity. Mr. Okerson spoke to that in more detail. Upon a motion made by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the Cormdssion approved Resolution No. 788. CamLission approval requested for Resolution No. 789 approving an a p2lication for personal pEoE)erty tax deduction for Mastic Division of Kou an, Inc. a motion made by Mr. Piasecki, seconded Upon by Mr. Combs and unanimously carried, the Conntission approved Resolution No. 798. Public Hearing on the Rum Village Industrial Park with respect to Resolution No. 783 and appicyal of Commission Resolution No. 786 ratifying and confirming Resolution No. 783 redEt laring the Rum Village Industrial Park b be blighted and an-ending the development plan Mr. Hunt read into the record the items for Public Hearing: 1. An original of the Notice of Public Hearing of the Rum Village Industrial Park. 2. An Affidavit of Carol Smith, Classified Manager of the South Bend Tribune, that Notice of Public Hearing was published ii that daily newspaper on September 26, 1986. 3. An Affidavit of Steve Kollar, owner of the Tri- County News, that Notice of Public Hearing was published in that weekly newspaper on September 26, 1986. 4. An Affidavit of K.C. Pocius that a Notic( of Public Hearing was delivered to Ms. Cathy Moore of the Area Plan Commission; -6- COMMISSION APPROVED RESOLUTION NO. 788 APPROVING REAL PROPERTY TAX DEDUCTION FOR MASTIC DIVISION OF KOUSAN, INC. COMMISSION APPROVED RESOLUTION NO. 789 APPROVING PERSONAL PROPERTY TAX DEDUCTION FOR MASTIC DIVISION OF KOUSAN, INC. South Bend Regular MeE 6. NEW BUS] f. Cont 5. M 7. 8. Ms. elopment Commission - October 10, 1986 (Cont.) Ms. Mary Rose Putz of the Board of Public Works; Ms. Linda Watson of the Board of Zoning Appeals and South Bend Building Department; and Ms. Brenda Burns of the Park Department on September 30, 1986. A copy of the Notice was posted on the Bulletin Board of the Department of Redevelopment, 12th Floor of the County -City Building, on September 30, 1986. An original copy of the Area Plan Commission's Resolution No. 90, which deals with the subject of the Public Hearing. A certified copy of Resolution No. 1440 -86 of the Common Council of the City of South Bend relative to the subject of the Public Hearing. A copy of Resolution No. 786 of the Redevelopment Commission with a copy of the Development Plan attached. As of 10:00 a.m., October 10, 1986, no written remonstrances were received. rn received the various documents and them entered into the record. Mr. Hunt explained that Resolution No. 783 expands the Rum Village Industrial park to include an eleven acre parcel of land which includes the present Mastic plant. Mr Hunt then read into the record the Rum Vii age Industrial Park Finding of Facts dated Oct ber 10, 1986: The South Bend Redevelopment Commission has conducted a study of the Rum Village Industrial Park (Area) and has found that the Area is blighted to an extent that cannot be cor ected 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: -7- South BendlRedevelognent Commission Regular Me ting - October 10, 1986 6. NEW BUSINESS (Cont.) f. Continued.. 1. The Commission finds that the portion of the Area previously designated as the Rum Village Industrial Park continues to be blighted due to the continued existence of the unstable soil conditions which was the original blighting condition. The high cost of removing and replacing the unstable soil has been a deterrent to private business operations that can not be overcome by the normal development 2, The Commission finds that the portion of he Area designated in Resolution No. 783 as Expansion Area No. 1 is blighted due to lack of development, cessation of rowth, and obsolesence. These conditions are present because access to e buildings is partially located on an adjoining railroad's right -of -way rather an on land owned and controlled by the building owners. These conditions are compounded by the fact that the buildings in the expansion area lack little accessible land area to expand or to modernize their existing facilities. Ms. Auburn asked, "Is there anyone here who is going to publicly object to any of the docunents which have been entered into the record?" There was no one. Ms. Auburn asked, "Is there anyone here who is going to offer objections to the Findings of Fact and the background information presented in this case ?" There was no one. Upon a motion made by Mr. Combs, seconded by Mr. iasecki and unanimously carried, the Co ssion accepted the Findings of Fact. Ms. JWburn opened the topic to discussion and questions from Commissioners and the public. There were no questions. Upon a motion made by Mr. Combs, seconded by Mr. iasecki and unanimously carried, the Conv4ssion approved Resolution No. 786 COMMISSION APPROVED FINDING OF FACTS ON RUM VILLAGE INDUS- TRIAL PARK COMMISSION APPROVED RESOLUTION NO. 786 RATIFYING AND CONFIRMING RESOLUTION NO. 783. South Bend Regular MeE 6. NEW BUSI f. Cont Redevelopment Commission ting - October 10, 1986 NESS (Cont.) ratifying and confirming Resolution No. 783 red claring the Rum Village Industrial Park to be blighted and amending the development plan. c. Cormission approval requested for Resolution No. 787 approving an application for personal property tax deduction for Original Foods. Hed read into the record the Departments review of the petition. 11 information requested on the petition s supplied. The property is properly zoned for the roposed use as verified by the Building Mr. in 'he property is located in an area iesignated as a Tax Abatement Impact Area )y the South Bend Common Council. 'he property is located in a Tax ncremental Financing Allocation Area. 'he project will create 8 new, permanent ull -time jobs, representing a new annual aayroll of $140,000.00. eal Property taxes paid at this location uring the previous five years totaled 3,010.92. etitioner estimates the market value of he new equipment after installation is 92,000.00. he estimated amount of taxes to be bated over the five year period is 7,335. .havez explained that Original Foods will `acture corn and flour tortillas to supply restaurants. He sees the employment :h potential for the business as sited. He has sold 24,000 shares of stock ie company. 0015 South Bend Regular Me 6. NEW BUS c. Con elopment Commission - October 10, 1986 (Cont.) Mr. Hunt noted that the BDC has also been involved in the financing of Original Foods. Upon a motion made by Mr. Combs, seconded by Mr. Piasecki and unanimously carried, the Cormdssion approved Resolution No. 787 approving personal property tax deduction for Ori final Foods. VJ§MFUtTg1F LT .•. There wore no progress reports. 8. NEXT COMMISSION MEETING a The ne Regular Meeting of the Commission will be October 24, 1986. In ordex to avoid a conflict with the Thanksgiving holiday E, it was proposed that the November meetingE be rescheduled to November 7 and November 21. Upon a motion by Mr. Combs, seconded by Mr. Piasecki and unanimously carried, the Commission approved the rescheduled meetings for November 7 and November 21 at 10:00 a.m. There bEing no further business to cone before the Commission, Mr. Combs made a motion that the meeting be adjourned. Mr. Piasecki seconded the motion and it was unanimously carried. The meeting was adjourned at 10:50 a.m. Paula N. Auburn, Vice President -10- COMMISSION APPROVED RESOLUTION NO. 787 APPROVING PERSONAL PROPERTY TAX DEDUCTION FOR ORIGINAL FOODS NEXT COMMISSION MEETING RESCHEDULED NOVEMBER COMMISSION MEETINGS / '7r J R. 11uht, Executive irector