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HomeMy WebLinkAboutRM 08-28-87SOUTH BEND REDEVELOPMENT COMMISSION REGULAR SCHEDULED MEETING August 2 , 1987 10:00 a. . Presidin Officer: Mr. F. Jay Nimtz President 1. ROLL CALL Membars Present: Memb rs Absent: LegaL Counsel: 2. 3. 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Mr. F. Jay Nimtz, President Mr. Roman J. Piasecki, Secretary Mr. Michael Donoho, Assistant Secretary Ms. Paula N. Auburn, Vice - President Mr. Sandy Combs Ms. Eugenia Schwartz Staff: Mr. Jon R. Hunt, Executive Director Mrs. Ann E. Kolata, Deputy Executive Di Mrs. Cheryl Phipps, Office Manager Ms. Gretchen Matthews Mr. Rick Pitts of Housing Staff: NewslMedia: Ms. Kathy Baumgartner, Director Ms. Jeanne Derbeck, South Bend Tribune 's: Mayor Roger O. Parent Mr. John Phair, Holladay Corporation Mr. Carter Wolf, Center City Associates Neil Gilbert, South Bend Heritage Maxine Ellison Eugenia Braboy Floyd Carter Carl Works James L. Mullins T. Brooks Brademas )VAL OF MINUTES Upon a motion made by Mr. Piasecki, seconded COMMISSION APPROVED THE MINUTES by . Donoho and unanimously carried, the OF THE AUGUST 14, 1987 MEETING minutes of the Regular Meeting of Friday, August 14, 1987 were approved. APPROVAL OF CLAIMS Upon a motion made by Mr. Donoho, seconded by COMMISSION FORMALLY APPROVED THE Mr. Piasecki and unanimously carried, the CLAIMS SUBMITTED AUGUST 17 AND CormLission formally approved the claims AUGUST 26 AND ORDERED CHECKS DATED AUGUST 21 AND SEPTEMBER 1, 1987 TO BE RELEASED -1- South Bend Redevelopment Commission Regular 14eeting - August 28, 1987 3. APPRDVAL OF CLAIMS (Cont.) submitted August 17 and August 26, 1987, and ordered checks dated August 21 and September 1, 1987 to be released. ADMIN 1987 John March - Petty Cash Exclusively Business Petroleum Traders Federal Express Trav lmore Indiana Bell Communications Smal Business Development Center Alex der Research & Communications The Loft 4. Automation Strategies Inc. Walker Parking Consultants Action Business Equipment Gretchen Mathews PDH Office Products Total Admin 1987 T.I.F. 1985 SoutJi Bend Water Works T.I.F. Allocation Fund Hellmuth Obata & Kassabaum Elec onic Time Systems, Inc. T.I. . 1986 Fund Total T.I.F. 1985 GRAND TOTAL This item was postponed until later in the meet Incr. 5. OLD was no old business. 6. NEW b. gommission approval requested for loans in connection with the Section 312 Loan Program in accordance with the ecommendation from the Bureau of -2- $ 88.49 20.00 16.04 101.75 168.00 296.68 50.00 97.00 49.62 889.00 1,387.91 352.00 55.31 434.62 $ 4,006.42 $ 8.49 25.00 4,098.78 75.00 211,320.00 $215,527.27 $219,533.69 THERE WAS NO OLD BUSINESS South B Regular 6. NEW b. Redevelopment Commission ting - August 28, 1987 INESS (Cont.) arbara L. Griffin 134 N. Adams Street .lice & Dannie Parker 008 Sherman Avenue ngela M. Manley 13 S. Pulaski onald & Irene Sobieralski 19 S. Kenmore r. Hunt noted for the record that the roperty at 1134 N. Adams Street is owned y a City employee. Don a motion by Mr. Piasecki, seconded y Mr. Donoho and unanimously carried, -ie Commission approved the loans in Dnnection with the Section 312 Loan rogram in accordance with the commendation from the Bureau of Dusinq. c. ommission approval requested for the ollowing Homesteading Agreements. rban Homesteads Foyce Bailey xnest Kimbrough sa.rbara Brown :ussell & Adelaida Shefbuch (chard I. Engle, Jr. Lichael & Kathy Barney ,ocal Homestead Loan $10,350.00 $19,000.00 $10,250.00 $12,550.00 COMMISSION APPROVED THE LOANS IN CONNECTION WITH THE SECTION 312 LOAN "PROGRAM IN ACCORDANCE WITH THE RECONMENDATION FROM THE BUREAU OF HOUSING 1656 W. Calvert 1325 Campeau 537 N. Cleveland 1326 W. Dunham 2017 S. High 3203 Revere Place ra E. Scott 614 E. Indiana . Baumgartner noted that the omesteading Agreement for Richard I. gle, Jr., 2017 S. High Street had not en signed and would be withheld until a later meeting. -3- South B nd Redevelopment Commission Regular Meeting - August 28, 1987 6. NEWIBUSINESS (Cont.) C. (Continued... Baumgartner then explained the irements for Homesteaders. They must py the home within 60 days unless e are extenuating circumstances, must g the house up to code within one and must reside in the home five s, after which the deed becomes . Piasecki asked the difference between ban and Local Homesteading. Ms. mgartner answered that Urban nesteading was funded federally and gal Homesteading was funded through ml Community Development Block Grant ids. In addition, Local Homesteaders st be at or below 80% of median income. . Baumgartner noted that to date there ve been over 100 deeds awarded upon :!cessful completion of the program. rty -seven are currently in the >n a motion by Mr. Piasecki, seconded COMMISSION APPROVED THE URBAN AND Mr. Donoho and unanimously carried, LOCAL HOMESTEADING AGREEMENTS Commission approved the Urban and LISTED ABOVE WITH THE EXCEPTION !al Homesteading agreements listed OF 2017 S. HIGH STREET eve, with the exception of 2017 S. High d. Conmission approval requested for Releases of Mortgage in connection with Rehabilitation Grants in accordance wit Bureau of Elizabeth Jennings. Thomas & Myrtle Malone . Hunt explained that under the old habilitation Grant Program there was a aged forgiveness of the grant. -4- South BE Regular 6. NEW a. Redevelopment Commission sting - August 28, 1987 (font.) Is. Baumgartner explained that the equirements for the parties to obtain elease of the mortgage are (1) that they aintain the property for five years and 2) that they hold insurance and pay roperty taxes on the property during hat time. �n a motion by Mr. Piasecki, seconded Mr. Dohono and unanimously carried, Commission approved the Releases of tgage in connection with the abilitation Grants in accordance with recommendation from the Bureau of sinq as listed above. ,ion approval requested for :ion No. 808 approving an Ltion for real property tax .on for East Race Inn Partnershi s. Kolata explained that East Race Inn artnership is seeking a six year tax batement for real property located at 16 N. Niles Avenue. Because of changes n the state law we have revised the form f our report. State law now requires a tatement of Benefits by the applicant hich must be approved by the Common auncil. It also requires the recipient E tax abatement to report to the iditor's office how it has met the tatement of Benefits. A third =_quirement is that the Council determine Zat impact the tax abatement has on the i.x rate. . Kolata noted that East Race Inn rtnership proposes to build an 80 unit, 1 suites hotel on 52 acres of land. It 11 create 20 new permanent jobs within e first year with a new annual payroll $250,000. Total protect cost is timated to be $4,000,000. The timated amount of taxes to be abated uals $707,665. The estimated taxes to paid equal $498,581. The impact on -5- COMMISSION APPROVED THE RELEASES OF MORTGAGE IN CONNECTION WITH THE REHABILITATION GRANTS IN ACCORDANCE WITH THE RECONA4ENDATION FROM THE BUREAU OF HOUSING South BE Regular Redevelopment Commission !ting - August 28, 1987 6. NEW BUSINESS (Cont.) a. r-:ontinuea... he tax rate for the year 1986 pay 1987 s as follows: with no development ccuring, the rate would remain at 15.0781 per $100 of assessed valuation; f the development occurs and does not eceive abatement, the rate would be 15,0778; and if the development occurs nd receives tax abatement the rate would e $15.0779. • property is not properly zoned for • proposed use, but the petitioner has plied for rezoning. The property is cated in a tax abatement impact area d is also in a tax incremental finance location area. The petitioner has dicated that he will conform to the velopment plan and design guidelines r the South Bend Central Development =a. He has also indicated that at ast 75% of the first floor will be used r retail space. Because of the last D conditions, the petitioner qualifies r a six year abatement. Ms. Kolata iicated that a copy of the petition 11 be attached to the report. r. Brademas explained the proposed roject in detail. He began by numerating the success of the Old Lathe brks project. It has created more jobs ithin the first year than anticipated 142 instead of the estimated 121). The otel will likely net $75,000 to $100,000 rofit instead of merely reaching break ven the first year. The restaurant was xpected to gross $850,000 the first ear, but has, in fact, been running at vice that rate. These facts have ncouraged him to proceed with the evelopment of the East Race Inn. He oted that if it were not for the ?velopment of the East Race, for the vailability of tax abatement and the ssistance of the Business Development Drporation incentive loan, it would have yen nearly impossible to undertake the irst phase of the project. South BE Regular Redevelopment Commission ting - August 28, 1987 6. NEWIBUSINESS (Cont.) a. uontinuect... this point Mr. Nimtz interrupted Mr. demas to allow the Mayor to make a sentation to Mr. Brademas. Mayor ent expressed appreciation for the k in the community that Mr. Brademas accomplished and presented him with a iature replica of the "Welcome to th Bend" sign which has been used at entrances to the City during his inistration. Mr. Brademas thanked the :)r for this honor conferred on him. fr. Brademas continued with the xplanation of his project. He passed round pictures of a similar hotel which e indicated was nearly identical to the ne he was proposing. He intends to onstruct twenty one - bedroom and sixty wo- bedroom units. As his marina is ompleted, he expects The Works Hotel to e filled to capacity continuously. He lso foresees a demand for short term ental units for the high level echnicians from Japan in connection with :Ze construction of the I/N Tek steel Lant. Further demand for this type of musing is expected to come from =_latives of patients who remain in the Dcal hospitals for extended periods. As member of the Hotel /.Motel Tax Board, he aware that the current reservations :)r 1988 already exceed the 1987 demand. )nvention bookings are ahead of the 1987 �vel also. . Brademas noted that the project will elude a large community activity room accomodate the requests The Works has an unable to fill. . Hunt noted that the staff considers is project to be important to the ntinued revitalization of the East Bank ea and, therefore, recommends -7- South Bend edevelopment Commission Regular Meeting - August 28, 1987 6. NEW BUSINESS (Cont.) a. continued... Mrs Kolata noted that the tax abatement report indicates a commitment from the partnership to hire not less than 100 of the project's employees from minority Mr. Brademas indicated that of the 142 jobs created by The Old Lathe Works project, 96 are in the low income category, 42 are moderate income and 4 fall into the high income category. Approximately 25% of the total employees are minorities. Mr, Brademas indicated that they hope to have the foundations in by the end of Septmiber and all enclosed by winter. A completion date is projected for April or May Of 1988. Upon a motion by Mr. Piasecki, seconded by MT. Donoho and unanimously carried, the Commission approved Resolution No. 808 approving an application for real pro rty tax deduction for the East Race Inn Partnership. At this poi n Mr. Hunt asked the Commission to consider the communication from West Washington-Chapin Revitalization Project, Inc. This item was an addition to the agenda. 4. a. Communication from West Washington- Chapin Revi alization Project, Inc. MOTION The Board of Directors and membership of the Tolest Washington - Chapin Revitalization Proj ct, Inc. (WWCRP) request that the Rede elopment Commission designate a certain area of the Near Westside Neighborhood as a Redevelopment Target Area. The boundaries of the area are defined below. This request is made with the following stipulations: COMMISSION APPROVED RESOLUTION NO. 808 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR THE EAST RACE INN PARTNERSHIP South nd Redevelopment Commission Regular 04eeting - August 28, 1987 4. COMMUNICATIONS (Cont.) a. Continued... .) That the Redevelopment Commission solve to frequently solicit and accept Dr consideration the views of residents ad merchants of the Near Westside Aghborhood in the ongoing redevelopment .) That the Common Council, in pproving designation of the West 3shington- Chapin Redevelopment Target rea, recognize through resolution the =_ed for considering the views of =_sidents and merchants of the Near =_stside Neighborhood in the ongoing =_development process; .) That the initial plan necessary to ssignate the Redevelopment Target Area limited to acquisition of vacant land rid implementation of public works in the reas A and B of the Redevelopment Target rea. The detailed objectives of the Dmprehensive plan will guide building z:quisition and demolition. No 2�molition is to be undertaken until this :)mprehensive plan is complete and ?proved by the WWCRP; .) That the Redevelopment Commission ill stay within the specified boundaries s here below described, or if it is =termined changes must be made in the :)undaries that the proposed changes be rought to the WWCRP for its review and .) That central to this request for the Dclaration of a Redevelopment Target rea be a requirement for the completion E a comprehensive neighborhood E�velopment plan. Components of the plan zd a timetable for completion will be freed to by the representatives of the gCRP, the City Administration, and the development Commission. South nd Redevelopment Commission Regular Meeting - August 28, 1987 4. COMMUNICATIONS (Cont.) a. i_:ontinuea... . Hunt explained that the staff has en working for some time with the eighborhood organizations and the ot- for - profit organizations active in e neighborhood to put in motion a evitalization effort for the ashington Walnut - Chapin area. He.noted at Mrs. Braboy has worked diligently ith both staff and the neighborhood roups to move the process forward. A trong working relationship based on tual trust is'developing. West ft7ashington-Chapin Revitalization Project, Inc. (WWCRP) is an incorporated' ot- for- profit organization which ncludes neighborhood residents, City ttaff, property owners, and epresentatives from other not -for- profit Mullins, Vice President for WWCRP, plained that the group has been meeting r approximately nine months to try to termine the future of the area. He dicated that the neighborhood is King to work toward the revitalization the area, but that they have some eas on the direction it should go and w it should be pursued. He indicated at the Board of Directors intends to rmally submit a resolution which will sentially be the same as today's mnunication. s. Braboy indicated her support for the fort toward making the area a development Target Area and having the 1p of the Redevelopment Commission in e revitalization of the area. . Nimtz expressed the compliments of e Commission for the work the WWCRP has been doing in the area. He referred the communication to the staff for their recommendation at the September 11 Regular Meeting. _10- COMMISSION REFERRED THE COMMUNI- CATION TO THE STAFF FOR THEIR RECOM"IENDATION South B Regular Redevelopment Commission sting - August 28, 1987 6. NEWIBUSINESS (Cont.) e. ommission approval requested for a proposal for a structural analysis and reuse feasibility study in the South Bend Development Area. Pitts explained that due to the scent discussions about possible reuse the Robertson's building, it has 'come critical for staff to be able to �termine the feasibility of the _fferent options. We are requesting a ;ructural analysis to determine the )ndition of the roof, elevators, >calators, the weight- bearing capacity the floors, etc. The analysis is isicaliy an engineering analysis, but ie architectural background is important > draft the basic schematics. The !port must be signed by a Professional igineer. Proposals were solicited from Lgineering /architectural firms. -umlish /Sporleder and Associates, Cole ,sociates and Leroy Troyer and sociates have submitted proposals. Mr. tts indicated that the staff commendation is that Leroy Troyer and sociates be awarded the project for a e not to exceed $8,400 with a mpletion date not to exceed 30 days. A py of Mr. Pitts' memo to the Commission mnarizing the proposals and the asoning behind the staff recommendation attached to these minutes. is. Schwartz asked if the $8,400 would be -educed by $1,500 since there are existing drawings of the building. Mr. >itts explained that the firms were _nstructed to submit proposals both issuming that such drawings do exist and :hat they do not. The owners of the )wilding have building plans, but it has iot been determined how helpful they will )e. The degree of assistance they )rovide will determine the ultimate cost. 'he cost would likely fall between the ;6,900 and $8,400 figures. -11- South B Regular 6. NEW e. f. Q Redevelopment Commission !ting — August 28, 1987 (Cont.) n a motion by Mr. Donoho, seconded by Piasecki and unanimously carried, the mission approved the proposal from oy Troyer and Associates for uctural analysis and feasibility study a cost not to exceed $8,400 and uced appropriately if there are ficient drawings of the building ilable. approval requested for No. 809 redeclaring the Corridor Development Area to s. Kolata discussed Resolution Nos. 9 and 810 at the same time since they th are related to tax increment and rsonal property. 's. Kolata explained that the current solutions declaring the Studebaker rridor Development Area and the Rum llage Industrial Park as redevelopment eas have provisions allowing preciable personal property as part of • tax increment. The last session of • state legislature amended the law to low commissions to set a percentage, up 25 %, of all personal property in the ea, regardless of their useful life. ese resolutions redeclare the areas to blighted and amend the necessary ovisions to allow us to take 25% of the rsonal property taxes paid in those ?a.s for tax increment. COMMISSION APPROVED THE PROPOSAL FROM LEROY TROY AND ASSOCIATES FOR A STRUCTURAL ANALYSIS AND FEASIBILITY STUDY r� an a motion by Mr. Donoho, seconded by COMMISSION APPROVED RESOLUTION . Piasecki and unanimously carried, the NO. 809 REDECLARING THE Tmission approved Resolution No. 809 STUDEBAKER CORRIDOR DEVELOPMENT :eclaring the Studebaker Corridor AREA TO BE BLIGHTED velopment Area to be blighted. ission approval requested for lution No. 810 redeclaring the Rum Villacre Industrial Park to be bliahted -12- South nd Redevelopment Commission Regular eeting - August 28, 1987 6. NEWIBUSINESS (Cont.) g. �:ontinuect... Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, e Commission approved Resolution No. 10 redeclaring the Rum Village Industrial Park to be blighted. 7. PROGRESS REPORTS Mr, Junt noted that he had toured the new Holi ay Inn in its nearly completed cond'tion and that it is going to be a very high class facility. Ms. Derbeck asked who owns the Robertson's building. Ms. Kolata indicated that there were several owners and that the department could supply that information. Ms. Derbeck asked why the owners don't pay for the arch tectural /engineering study. Mr. Hunt explained that the three different owner groups with multiple owners in each group would take a long time to approve such a move and that there is enough public benefit to move ahead on finding a new use that it warrants public experiditure. Mr. Nimtz noted that three parcels will be on the tax sale in October. Mr. Hunt also noted that the staff will be in the position of advising for or against acquisition of the building at some time and this info tion would be necessary to assess the situation then. 8. NEXT (COMMISSION MEE`T'ING The next Regular Meeting of the Rede elopment Commission is scheduled for Sept Ember 11, 1987 at 10:00 a.m. Mr. =tz announced that the Executive Sess would continue immediately foll ing the adjournment of the Regular -13- COMMISSION APPROVED RESOLUTION NO. 810 REDECLARING THE RUM VILLAGE INDUSTRIAL PARK TO BE BLIGHTED PROGRESS REPORTS NEXT COMMISSION MEETING South BE Regular a Redevelopment Commission ting - August 28, 1987 There being no further business to come before ADJOURNMENT the Commission, Mr. Donoho made a motion that the meeting be adjourned. Mr. Piasecki seconded the motion and it was unanimously ra rr ierI _ OEM R. Hunt, Executive Director