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HomeMy WebLinkAboutRM 09-25-87September 2 10:00 a.m. Presiding C 1. ROLL Legal 0 Redevel SOUTH BEND REDEVELOPMENT COMMISSION REGULAR SCHEDULED MEETING 5, 1987 1200 County -City Building 227 W. Jefferson Boulevard Eficer: Mr. F. Jay Nimtz South Bend, Indiana 46601 President Present: Mr. F. Jay Nimtz, President Ms. Paula N. Auburn, Vice - President Mr. Roman J. Piasecki, Secretary Mr. Sandy Combs, Member Absent: Mr. Michael Donoho, Assistant Secretary Ms. Eugenia Schwartz Staff: Mr. Mrs Ms. Ms. Mr. Mr. Community Development Staff: Bureau News Me( Others: 2. APPROVA] 3. Jon R. Hunt, Executive Director Cheryl Phipps, Office Manager Hedy Robinson Gretchen Matthews Rick Pitts K.C. Pocius Mr. David Norris Housing Staff: Ms. Ms. Mr. Mr. Mr. Ms. OF MINUTES Kathy Baumgartner, Director Jeanne Derbeck, South Bend Tribune Dick Maginot, WSBT -TV Gary Sieber, WNDU -TV Carter Wolf, Center City Associates Sandra Kieffer Upon a motion made by Mr. Piasecki, seconded COMMISSION'APPROVED THE MINUTES OF by Ms. )uburn and unanimously carried, the THE RESCHEDULED REGULAR MEETING OF minutes of the Rescheduled Regular Meeting of FRIDAY, SEPTEMBER 11, 1987 Friday, September 11, 1987 were approved. Upon a Ms. Au Commis submit and or, OF CLAIMS .ion made by Mr. Combs, seconded by COMMISSION FORMALLY APPROVED THE and unanimously carried, the CLAIMS SUBMITTED SEPTEMBER 14 AND formally approved the claims SEPTEMBER 24, 1987, AND ORDERED September 14 and September 24, 1987, CHECKS DATED SEPTEMBER 18 AND d checks dated September 18 and SEPTEMBER 25, 1987 TO BE RELEASED 25, 1987 to be released. -1- South Bend edevelopment Commission Regular Meeting - September 25, 1987 3. APPROVAL OF CLAIMS (Cont.) ADMIN 1987 4. Copy Ki ng, Inc. Federal Express Gary Me ter Studio General Fund Parker & Jaicomo Petrolexn Traders South Bend Drafting National Development Council Architecture Magazine American Society for Public Administration Busines Communication Center City anJ State Federal Express Warren, Gorham, & Lamont, Inc. T.I.F. 1985 Cole As ociates, Inc. Hellmu -Obata & Kassabaum Inc. Richard E. McCloskey South nd Water Works a. Communication from Mr. John Phair Holladay Corporation. Mr. Hunt read into the record the communication from Mr. Phair. Sep 9, 1987 Mr. 1::7runt Department of Redevelopment City of South Bend County-City Building South Bend, IN 46601 RE: Michigan/Western Avenue Property -2- $ 2,360.00 73.00 226.00 636.75 228.80 19.60 39.21 595.00 35.00 120.00 45.00 15.00 28.00 125.70 $ 4,547.06 $ 3,501.40 4,557.36 700.00 8.49 $ 8,767.25 COMMUNICATION FROM MR. JOHN PHAIR, HOLLADAY CORPORATION South Bend edevelopment Commission Regular Mee ing - September 25, 1987 4. COMMUNISATIONS (Cont.) a. uonr-inuea... Jon: Whe we made the presentation to you abo t the above- referenced site, we indicated we were still in negotiations wi the potential user who would utilize the lion's share of the office building we ope to develop on that site. We have not yet been able to bring this project to ompletion - nor have they made a dec'sion to go elsewhere. We would like to have a six -month ext nsion of our contract in hopes of bringing this to a successful conclusion. Thi3 would be an extension of our pro sal made on April 24, 1987, for par els C9 -1 and C9 -2. We �ould appreciate your consideration in thi matter. y. T. Phair Mr. Hunt pointed out the location of lots C9-L and C9 -2 on a map. They are located on the southwest corner of Western Avenue and St. Joseph Street. He indicated that the staff recommendation is that the Co ssion grant an extension. Mr. Nimtz suggested an extension of three months, to December 31. He asked if there were any objections. There were none. He directed staff to inform Mr. Phair of the three month extension and th4 more time would be granted if nec ssary, providing progress was being c. Communication from Sandra Kieffer rea ding the L. Keen Building. Mr. Hunt summarized the letter from San a Kieffer, a copy of which is attAched to these minutes. -3- COMMUNICATION FROM SANDRA KIEFFER REGARDING THE L. KEEN BUILDING South Bend edevelopment Commission Regular Mee ing - September 25, 1987 4. COMMUNIOATIONS (Cont.) c. c:onr- inuea... Ms. Kieffer is a member of the Kie fer- Zimpelman Partnership which was awarded the Contract for Sale of Land for the L. Keen Building at 402 -404 E. South Str et. The partnership is requesting modifications to the Contract for Sale of T-anJ that would allow an immediate pur base by the partnership for $20,000 in ash. They will continue to seek private equity and debt financing to make the necessary renovation of the building. Mr. Hunt noted that the partnership has cleared up many of the contingencies in the contract, such as acquiring necessary zoning and the purchase of the lot adjacent to the property. They have co tted $6,700 to an architectural firm for renovation plans. The building is deteriorating as it sits vacant. The partnership has sufficient money to begin wor and they feel that ownership of the bui ding would help them secure the fi cing they need. They believe they can still make the time schedule they co tted to originally. Ms. Schwartz noted that the current contract requires that the partnership obtain a definite financial commitment and be ready to close on that financing prior to the transfer of land. In order to ansfer the land prior to securing a def ' nite financial commitment, the Con ract must be amended. Ms. Kieffer indicated that the age and condition of the property seems to be a maj r consideration of the financial institutions when considering financing. If they can begin renovation, she believes financing will fall into place. Ms. Auburn stated that she believed the Commission would like to help in whatever way they could to get the project moving. She asked what the staff had decided wou d be most helpful. -4- South Bend pedevelopment Commission Regular Me ting - September 25, 1987 4. COMMUNWATIONS (font.) c. c;ominuea... Mr. Hunt responded that there were several possibilities. One possibility is the proposed transfer of land for the $20,000 cash proposed by the letter. Another is a long -term lease arrangement whi h would allow them to begin work on the building, but leave them with the cas to put into the renovation. Ms. Schwartz suggested a long -term lease with option to purchase, with some or all of he lease payments being applied toward the purchase price. The option cou d be exercised upon the obtaining of a d finite financial commitment. Mr. Piasecki asked Ms. Schwartz to exp ain why the Commission cannot sell the property outright. Ms. Schwartz exp ained that the desire is to balance the need to begin renovation with the recpiirement to have definite financing in place prior to conveyance of the T)rotertv. Mr. Wolf indicated that the partnership had approached Center City Associates so time ago seeking assistance from their loan programs. At that time there were requests for the available loan money from downtown businesses. Although CCA loans can be made to Monroe Park projects, downtown projects are a priority and he had not offered much encouragement for pursuing the loans for the L. Keen project. However, many of the downtown projects had been unable to put their financing together and there is abo t $60,000 available through CCA loan pr rams which needs to be spent in 1987. He ffered to use these funds to help lev rage private financing. Mr. Nimtz directed the staff to work with the Kieffer - Zimpelman Partnership and wi CCA and Legal Counsel to come up with a recommendation for the October 9 Co scion meeting. -5- South Bend Redevelopment Commission Regular Meeting - September 25, 1987 4. COMMUNICATIONS (Cont.) b. Co unication from Zion Missionar,_ Bap ist Church. Mr. Hunt read into the record the letter from Rev. R. H. Derrickson, Pastor of Zion Missionary Baptist Church. 14, 1987 Mr. F. J. Nimtz, President Red velopment Commission of South Bend 227 West Jefferson Blvd. South Bend, IN 46601 & Gentlemen /Redevelopment sion: The Greater Christian Tabernacle Church that is presently occupying the building at 10 West Monroe Street will be moving out the 25th of October, 1987. The pastor and members of Zion Hill Missionary Baptist Church would like to set up an appointment to meet with you. We would like to discuss proceeds on what plams to acquire to move the church to a dif Brent location. May we hear from you ve soon? you. ly, Revd R. H. Derrickson, Pastor Mr. Nimtz directed staff to meet with Rev Derrickson, and some Commissioners if pecessary, to see if a satisfactory arrangement can be worked out. They should report back at the October 9 Comiission meeting. There were two additions to the agenda under d. Ca nication from The Combined Capital Mr. Hunt read a portion of the letter fr Mr. Robert Sowinski, Chairman of S3 COMMUNICATION FROM ZION MISSIONARY BAPTIST CHURCH COMMUNICATION FROM THE COMBINED CAPITAL GROUP South Bend Regular MeE elopment Commission - September 25, 1987 4. COMMUNIICATIONS (Cont.) c. uominuea... Combined Capital Group, a copy of h is attached to these mintues. "By attending the meeting that your office sponsored on the morning of Friday, September 11, 1987 and by thoroughly reading and reviewing the very extensive booklets that were distributed during said meeting concerning the South Bend-Downtown Development Plan for the years 1987 through 2000, it is plain to see that a great deal of forethought, plaining and analysis has been done by youir office. In light of the fact that the other developers in the immediate area of our proposed office building have agreed to pro ide space for an open -air pedestrian plaza-walkway through the visual corridor area running east to west between the Cen ury Center and the St. Joseph County Co house, we have decided to modify the design of our proposed office building. This will enable us to allow for the development of said east -west open -air pedestrian plaza- corridor as suggested by the South Bend Downtown Development P1 ." Mr. Hunt explained that he and Ms. Schwartz had met with Mr. Sowinski to clear up some details on the Contract for Sale of Land for the purchase of the pro rty south of the Marriott Hotel. At that meeting Mr. Sowinski expressed interest in modifying their design to better conform to the proposed developments adjacent to theirs. Mr. e stL the Hunt explained that they are sing to mirror the Holladay ration's proposed building, nating their proposed atrium and ting a public plaza. They would 1 have the 3rd story connection into parking garage as planned. -7- South Bend edevelopment Commission Regular Me ting - September 25, 1987 4. COMMUNICATIONS (Cont.) d. Continued... Mr. Hunt indicated that the design modifications would require additional time to prepare and that Mr. Sowinski was requesting changes in the schedule. The date for completion of the project, November 30, 1989, however, would remain the same. He indicated that the staff rec mmendation is to accept the proposed modifications. Upoi a motion by Ms. Auburn, seconded by Mr. Piasecki and unanimously carried, the Comnission approved the proposal from The Co fined Capital Group. e. Co ication from Rev. Michael P. Fri nd, Pastor, Christian Tabernacle. Mr. Hunt read into the record the letter fro Rev. Friend. 2, 1987 Cit of South Bend Attention: Ann Kolata 1200 County -City Building South Bend, IN 46601 Ms. Kolata: Thank you for your response to our request for an extension. We are moving along rapidly and we appreciate your kindness in allowing us to move at a quick, yet comfortable pace. We will try to vacate during the end of October as planned, if we can get an occupancy permit with a few things left undone inside. At this point, we haven't had any major setbacks. We 4ppreciate your being so patient and all wing us to change our moving date. Y► Rev.l Michael P. Friend 91:12 COMMUNICATION FROM REV. MICHAEL P. FRIEND, PASTOR, CHRISTIAN TABERNACLE South Bend Regular Mee 5. OLD BUS There 6. NEV BUS a. elopment Commission - September 25, 1987 no old business. Con ni.ssion approval requested for ro sals and loans in connection with the Rental Rehabilitation Program in accordance with the recommendation from the Bureau of Housing. Contractor Pau Hayden Paul Hayden 929 W. Washington Jol ne Newton Townsend Construction 915, W. LaSalle Jos ph MacHatton J.M.A. Properties 112 -1130 Lincolnway West Mr. Hunt noted that the Rental Rehab Pr ram is based upon a 10 year, no int rest loan where loo is forgiven each year if the owner continues to meet the conditions, renting to low and moderate inc me individuals /families. Ms. Baumgartner noted that, although the cost of rehabilitating the property at 929 W. Washington seems high, Paul Hayden doe a beautiful job of renovating any bui ding he does. He does most of the work himself. Since his only income is through his contracting, a waiver was gr ted to allow him to be paid for his se ices through the private loan. Ms. Schwartz asked if there were any guidelines in a historic district on a non rated home. Ms. Baumgartner indicated that there were none. Historic Preservation must be contacted if there is a rating of 12 or higher. Mr. Hav en's home is rated less than 9. Mr. Piasecki asked what the conditions are under the Rental Rehab Program if the e is only one unit. Does it have to THERE WAS NO OLD BUSINESS 1 Loan $ 31,425.00 $ 8,700.00 (Public) $23,870.00 (Private) $ 4,319.00 $ 2,275.00 (Public) $ 2,275.00 (Private) $ 34,404.30 $17,400.00 (Public) $18,240.00 (Private) South Bend edevelopment Commission Regular Me ting - September 25, 1987 6. NEW BUSyINESS (Cont.) a. CoMinuect .. . be rented to low /mod income individuals/families and does the Bureau of Housing monitor that? Ms. Baumgartner indicated that it does and that the Bureau of Housing does monitor that. Mr. Combs asked who requests the pr000sals, the Bureau of Housing or the proDerty owners. Ms. Baumgartner resDonded that under the Rental Rehab Pr ram the property owner requests the pro salsa She also noted that when the own r is also the general contractor he is not required to solicit other proposals if his proposal is in line with the Bureau of Housing estimate. Ms. Baungartner also noted that there are so strict performance timetables. Since they have to spend their money before receiving the Rental Rehab money, if they don't meet the schedule the contract will be cancelled and the Rental Reh money will be withdrawn. Upon a motion by Mr. Piasecki, seconded COMMISSION APPROVED THE PROPOSALS by Mr. Combs and unanimously carried, the AND LOANS IN CONNECTION WITH THE Comnission approved the proposals and REN'T'AL REHAB PROGRAM lowis in connection with the Rental Rehab Program listed above. b. Co ssion approval requested for Res lution No. 811, a joint resolution of the South Bend Board of Public Works and the South Bend Redevelopment Commission agreeing to the conveyance and acceptan ce of certain property (South St. Joseph Str et and East Wayne Street). Mr. Hunt noted that the property being conveyed by this resolution is the Redevelopment owned property behind the J. C. Penney building which is earmarked for the proposed municipal parking aar ue. Ms.�Schwartz explained that this res lution complies with requirements of -10- South Bend Regular Me 6. NEW BU b. Co. elopment Commission - September 25, 1987 (Cont.) ana law where public agencies can ey property to each other by the age of a joint resolution, or two lutions that are essentially the . She noted that the Commission ently leases this property to a ate party and it would, therefore, be opriate to send a Notice of ination of Lease prior to the final evance to the Board of Public Works. Upon a motion by Ms. Auburn, seconded by COMMISSION APPROVED THE JOINT Mr. Combs and unanimously carried, the RESOLUTION NO. 811 AGREEING TO THE Co 'ssion approved Joint Resolution No. CONVEYANCE AND ACCEPTANCE OF CERTAIN 811 agreeing to the conveyance and PROPERTY TO THE SOUTH BEND BOARD OF acc ptance of certain property to the PUBLIC WORKS Soutth Bend Board of Public Works. c. Co 'ssion approval requested for Resolution No. 812 authorizing reinbursement to the City of South Bend for expenditures made within the Rum Vil age Industrial Park. (Acquisition of Mr. Hunt explained items 6 c. and 6 d. together. He noted that both are associated with the Mastic expansion and the extension of a public street to the project area. The City secured funding from the State in the amount of $320,000 ($1150,000 as a grant and $160,000 as a five year loan from State Economic Development funds). The $320,000 will be usel for acquisition of property, construction of a road, and the related drainage and sewer lines to run to the Mastic property so that Mastic could then build a 125,000 s.f. addition to their factory and bring on 60 new employees and four new production lines. Resolution No. 812 would allow the Commission to reiinburse the City of South Bend Department of Economic Development for the acquisition of property with Civil City funds in the amount of $15,080.58 for the acquisition of right -of -way -11- South Bend edevelopment Commission Regular Me ing - September 25, 1987 6. NEW BUSINESS (Cont.) c. (-om nuea.. . purchased from Nelson Fuel and the Norfolk Southern Railroad. Resolution No. 813 would allow the Civil City to be re' ursed by the Commission from Tax Increment Financing revenues that are ge rated by the new development of Air o, New Energy, and Mastic to pay back the loan from the State. Ms. Schwartz explained that the only difference between the processes in the two resolutions is that Resolution No. 812 is a total reimbursement of e nditures made all at once. Resolution No. 813 basically reimburses the City over a period of years that coincide with the City's need for those funds to pay back the State loan. She pointed out that this is the first time tha the State of Indiana has used this mechanism with a local Redevelopment Commission for a reimbursement of Tax Increment Financing funds. They see this as a test and model to be used in future projects across the state where a state loan being repaid by tax increment finacing is associated with a red velopment project and not just an economic development project. Ms. Auburn declared a conflict of int rest on Resolution No. 812 and Resolution No. 813 and refrained from discussion and voting. Upon a motion by Mr. Combs, seconded by Mr. Piasecki and carried, the Commission approved Resolution No. 812, authorizing reimbursement to the City of South Bend for expenditures made within the Rum Vil aae Industrial Park. d. Commission or nt to the Cit tures made wi for of South Bend in the Rum State Loan) -12- COMMISSION APPROVED RESOLUTION NO.812 AUTHORIZING REIMBURSEMENT TO THE CITY OF SOUTH BEND FOR EXPENDITURES MADE WITHIN THE RUM VILLAGE INDUS- TRIAL PARK South Bend edevelopment Commission Regular Me ting - September 25, 1987 6. NEW BUSINESS (font.) d. Conitinued... .Upcn a motion by Mr. Combs, seconded by COMMISSION APPROVED RESOLUTION Mr. Piasecki and carried, the Commission NO. 813 AUTHORIZING REIMBURSEMENT approved Resolution No. 813, authorizing TO THE CITY OF SOUTH BEND FOR reimbursement to the City of South Bend EXPENDITURES MADE WITHIN THE RUM for expenditures made within the Rum VILLAGE INDUSTRIAL PARK Village Industrial Park. e. Commission approval requested for First Amendment to Lease with Osco Drug, Inc. Mr. Hunt explained that as, permitted in the Lease Agreement with Osco Drug passed in April 1985, Osco is requesting the exercise of their first option to extend their lease for one year, from September 1987 to September 1988. They are also requesting approval from the Commission to xpend an additional $53,000 for the rec nstruction of the roof on the building. In addition, they are asking for two additional option years to be add ad to their lease. Mr. Hunt explained that in the original lease we indicated to them that we wanted to step away from certain obligations that we had to them in terms of relocation and costs associated with rel cation. We suggested a substitute mec anism which would allow us to have a was of costs. They would do $250,000 of imp ovements, which would be reimbursed to em based upon a depreciation sch Jule if we should terminate the lease wi in five years. In turn, they would wai e all relocation benefits which would hav otherwise been due them. MOM amendment would allow them to (1) end an additional $53,000 of their �y to make improvements to our Lding; (2) have an additional two -s of option to lease; and (3) -cise the first year's option under original agreement. -13- South Bend Pedevelopment Commission Regular Me ting - September 25, 1987 6. NEW BUSINESS (Cont.) e. CoMinuect... Mr. Hunt noted that the total expenditures made by Osco's for improvements to our building, should this amendment be approved, would average $26.00 per square foot. The rent pay.ment, $1.62 per square foot per year, is substantially below market rate, but they are responsible for taxes of $1.63 per square foot per year. They are liable for $18,870 per year in taxes. Mr. Hunt indicated that the staff recommends allowing them to make the additional $53,000 expenditure, adding that to the total depreciated expDnditures, and allowing them to exercise their first option to extend the lease. He pointed out that Osco has been the retail anchor in the downtown for the last several years, generating additional traffic for the other retail users in the do town. He stressed the importance of keeping them in the downtown until we develop new space. Mr. Wolf expressed concern about signage in the store. He suggested approving the Lease pending review by the Design Review Co ttee. His concern was for the terrporary signage, specifically the 4'x8' sheet advertising the 8G sale which has beem posted for more than six months. He ackmowledged that they have been an excellent tenant and a good citizen in the downtown, but suggested that we use the leverage we have at this point to reqiest design review of the signage. Mr. Piasecki asked if Osco had been approached about removing the sign. Mr. Wolf' indicated that they had not, but they have had discussion regarding the litter caused by the soft drink machines in 4ront of the building. They have been cooperative about keeping that clean. Mr. Hunt indicated that he would contact Osco about the sign. -14- South Bend Regular Mee 6. NEW BUS e. Con VA elopment Commission - September 25, 1988 (Cont.) Mr. Piasecki asked for a clarification of the depreciation schedule. Mr. Hunt explained that Osco felt they deserved some benefit for improving a bui ding belonging to the Commission when it was possible that they could lose their lease. The Commission desired to be released from the open -ended liability of relocation costs if they should need to terminate the lease. A compromise was proposed and accepted whereby the imp ovements Osco put into the building wou d be depreciated according to a five year schedule after which the Commission wou d owe them nothing and would bear no responsibility for relocation costs or re-unbursement for improvements on the building. Now that the roof needs repair and they are responsible for that under the lease, they would like to have the re it expense figured into the existing depreciation schedule. The depreciation schedule would remain at five years. He indicated that staff feels this is a reasonable approach to maintaining the presence of Osco downtown. Upon a motion by Ms. Auburn, seconded by Mr. Piasecki and unanimously carried, the Comnission approved the First Amendment to Lease with Osco Drug, Inc. M. ., . Mr. Hunt noted that the Design Review Committee met with Mr. Brademas regarding the East Race Inn, the all - suites hotel project for the East Bank. Approval was granted contingent upon satisfying landscape, lighting and color combinations for the building and screeni g for parking. The Design Review Committee was impressed with the project as a whole. -15- COMMISSION APPROVED THE FIRST AMENDMENT TO LEASE WITH OSCO DRUG, INC. PROGRESS REPORTS South Bend edevelopment Commission Regular Me ing - September 25, 1987 7. PROGRESS REPORTS (Cont.) Mr. Nintz publicly congratulated Mr. Pitts, . Matthews, Ms. Robinson, and Mr. Poc'us for the excellent products produced and public presentations in connection with the Michigan Street Corridor Plan and the Studebaker Corridor Plan. He noted that they have generated a strong wave of optimism in the community. He has received may positive comments about both since their release. Mr. Hunt noted that in response to Mr. Piaseck''s request at the September 11 Commission meeting that the West Washington - Chapin Revitalization Project Inc. Planning Committee consider extendi g the boundaries of the proposed Redevelopment Area to include an area between Lincolnway West and Laporte Streets a memo to the Commissioners has been prepared by Mr. Norris to apprise the Comnission of WWCRP's decision. Mr. Norris summarized the memo, a copy of which is attached to these minutes. The WWCRP Planning Committee is aware of the problems in the area in question, but they do not feel that there is sufficient time to consider changing the boundaries of the Redevelopment Area without jeopardizing the entire project. They did not rule out extending the boundaries at some time in the future. Mr. Norris noted that approximately $400,000 of Community Development Block Grant money has beem spent on 100 homes in that area over the last twelve years. Mr. Hunt stated that there is no question there is a need in the area. But the Redevelopment Commission's ability to acquire land and assemble it for development is not what the area needs. He noted that the Housing Development Corporation could better address those needs with a neighborhood revitalization effort. The Redevelopment Commission cannot spend money to rehabilitate a house unless they own the house. -16- South Bend Regular Mee 7. elopment Commission - September 25, 1987 REPORTS (Cunt.) Mr. Pi secki questionned how effective the programs have been if such an expenditure has left so little mark. Mr. Hunt noted that problems in the area are split between homeowner properties and rental properties. Early programs have assisted mostly homeowners. The Housing Development Corporation is able to implement rental assistance programs. Ms. =artz noted that Code Enforcement is aactive in the area. Ms. Auburn asked Mr. Wolf to give an update Dn what Center City Associates is doing 1 tely. Mr. Wolf indicated that CCA is focusing on business development in the downtown. They have had some disappo'ntments and some encouragement as they promote their loan fund and are current y trying to leverage more private money for the loan pool. He noted that the Ric and Lutin project is near complet'on. They have just awarded a contra4 on the Si Brazy Building which should completed by the end of the year. 8. NEXT COINIMISSION MEETING a The ne Regular Meeting of the Redevelopment Commission is scheduled for October 9, 1987 at 10:00 a.m. There bAng no further business to come before the Commission, Mr. Combs made a motion that the meeting be adjourned. Mr. Pia ecki seconded it and the meeting was adjourned at 11:20 a.m. -17- NEXT COMMISSION MEETING it R. Hunt, rector TO: FROM: SUBJECT: DATE: I met with Planning Cc regard to i The member portion of voted, how agreement The Planni Redevelopm boundary a arrived at of the Dev The area West. Mar exteriors. Over the 1 Grant fund Lincolnway City's Bur West have businesses since its i The most owner occ portion of I ii- ] I CE M U REDEVELOPMENT COMMISSIONERS DAVID N01e(i '/i REVISED BOUNDARY OF THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA SEPTEMBER 25, 1987 fibers of the West Washington - Chapin Revitalization Project, Inc. ttee on September 14, 1987 and presented Mr. Piasecki's question with uding the area between LaPorte Avenue and Lincolnway West in the West pin Development Area. of the Planning Committee acknowledged the problem-- that exist in that chat is generally regarded as the Near West Side Neighborhood. They 'er, "to keep the boundaries as previously drawn" (referring to the scribed in Jon Hunt's September 11, 1987 memorandum tc the Commission). Committee indicated that they had a history of working in the t Area upon which the WWCRP and the City had agreed. Any change in the this time could jeopardize the project in that the boundaries they had ere the result of many months of work and discussions with the residents opment Area. • Piasecki suggested tc add to the Development Area is nearly all • Commercial buildings are primarily on the north side of Lincolnway of the homes in this area appear to need some amount of repair to their ;t twelve years, approximately $400,000 of Community Development Block has been spent on 100 homes within this area between LaPorte Avenue and lest. Nearly all were loan_ programs designed to assist homecwnErs. The .0 of Housing formerly adm'.nistered these programs. The Housing Corporation now administers these programs. Businesses along Lincolnway !cess to the Neighborhood Business District Revolving Loan Program. Nine .long Lincolnway have taken advantage of the program in the two years Itiation. Lking need appears to be the ccncentration of housing programs for both :d and rental property within this area. The provision of public works is the only benefit I see that could be derived from including this fie Near West Side in the West Washington - Chapin Develompent Area. With this n mind, I recommend that we ask the Housing Development Corporation to look at the area to determine how existing programs might be marketed, or, if necessary fied to address the conditions that now exist. I further recommend that we ask the City's Neighborhood Code Enforcement to see how their Department might help in this situation. Finally, I suggest that the boundary for the West Washington Chapin Development Area remain as agreed upon by the WWCRP and the City for now. 1. believe, however, tha_ the City, the Redevelopment Commission and the Neighborhood should closely monitor the conditions of the area in question to see how we can be of further assistance. DN /ed WW /6 September 22, 1987 Mr.. Jon R. Hunt Executive Director Department of Economic Development County-City Building South Ben l, Indiana 46601 Dear Jon: It was a pleasure meeting with you and Ms. Eugenia Schwartz concerning our proposed Capital Plaza Office Building to be constructed on Parcel C4 -3 of the South Bend Central Development Area. Getting together to discuss this matter with you and Ms. Schwartz proved to be a very enlightening, worthwhile and beneficial experience. v As we discussed during our. meeting, we want our downtown office project to conform as much as possible with the South Bend Redevelopment Commission's Central Eusiness District Conceptual Plan. By attending the meeting that your office sp nsored on the morning of Friday, September 11, 1987 and by thoroughly reading and reviewing the very extensive booklets that were distributed during said meeting concerning the South Bend- Downtown Development Plan for the years 1987 through 2000, it is plain to see that a great deal of forethought, planning and analysis has been done by your office. In light of the fact that the other developers in the immediate area of our proposed office building have agreed to provide space for an open -air pedestrian plaza - walkway through the visual corridor area running east to west between the Century Center and the St. Joseph County Courthouse, we have decided to modify the design of our proposed office building. This will enable us to allow for the development of said east -west open -air pedestrian plaza- corridor as suggested by the South Bend Downtown Development Plan. Howe er, our office building' design plan will have to be modified. to the extent that the east -west atrium at the southern end of our proposed office building will be removed. This will allow for unrestricted pedestrian traffic to flow across our parcel so that the visual corridor could then be a continuous open -air pedestrian corridor from St. Joseph Street on the east and continuing on to Main Street on the west. As we discussed, such a modification of our proposed office building design will require some additional time to be devoted to the re- design process. However, it is ver important to us that the completion date of our proposed office building THE COMBINED CAPITAL GROUP Valley American Bank Bldg. Suite 2112 • P.O. Box 630 • South Ben IN 46624 Telephone: (219j.232 -9200 Mr. Jon F. Hunt Septembex 22, 1987 Page -2- _ will continue to be November 30, 1989. But, some of the initial target dates will have to be rescheduled. Along this line, we feel that we would be in a position to submit construction plans for the project to the Redevelopment Commission's design review committee for review and approval by November 30, 1987. We feel that we would be in a position to submit to the Redevelopment Commission. commitments for financing. the project by March 1, 1988. Therefore, we would be in a position to initiate bidding for construction work on the project by April 1, 1988. Consequently, construction of the project should then begin no later than July 30, 1988. We feel that the above mentioned timetable would still enable us to complete the project on or before November 30, 1989. We would appreciate your cooperation in discussing all of the above mentioned with the South Bend Redevelopment Commission at your earliest convenience and then informing us of their thoughts on the matter. Also, in the event you would like me to meet with the Redevelopment Commission, please do not hesitate to call. Sincerel A. Sowinski - Chairman RAS /j 115 CC: Eugenia S. Schwartz 1200 Sout ielooment Commission County -City Building i Bend, Indiana 46601 Re: �. Keen Building (402 -404 E. South) Dearl Commission Members, 17700 Woodthrush Lane South Bend, Indiana 46635 September 7, 1987 We would like to be allowed to purchase the Keen Building for cash ($20,000) before we secure financing for the total rehabilitation and startup business costs. Through the efforts of the Redevelopment Department and Durselves we have the contigencies resolved. We have acquired the necessary zoning and purchased Lot 3 from the Board of Public Works. We have not been sucessful in securing financing that we can live with. Only one local bank has given us a financing proposal. They would require us to pay 30% down, on $170,375 and take second mortgages on both of our homes, and require liens on other properties we own or have interests in. None of the noney loaned could be used for rental units. This proposal is not only unacceptable, it is not good business and we w uld certainly fail in all of our efforts. We do not intend to imply that we have been to every local financial institution, however we have been to 3 and were rejected by 2 (one because they do n )t handle commercial loans and the second outright with no explanation) and the third, the proposal which I outlined for you. It has taken 9 weeks to g t these responses. For several reasons we need to own the building as soon as possible. From a business standpoint, we have been advised that we would be in a better position to bargainfor any financingif we owned the property outright. Further, we have sufficient personal income, investments and family monies that are available to get the rehabilitation well on its way. We have comm tted $6700 to Edward VanRyn to act as our architect. He is working on plan for us which will allow for phasing in each part of our plan and be- gin Aerating as a business before the building is completed. We do believe that we could have the building completed within the 3 years as we said we coul in our original proposal to you. to p care We n is s into The matter of winter is also most pressing. The building needs work ,eserve what has already been done. If many more months go by without it. will become more and more costly to make this a viable building. ?ed to be able to get the preliminary clean out and getting while there :ill warm weather and enough light to work. If we are not able to get the building soon, another winter will go by without heat in it. Keen I Bui 1 di ng It i important for the neighborhood that this building not be allowed to sit vacant any longer. The neighborhood is still fragile. It needs a cata yst to pull people into Monroe Park for the good reasons, not as abse tee owners, but as investors for the future. Good reasonable hopu ing is needed in the near downtown area. But, there has to be a real visa le reason before we can effect any turnaround in the neighborhood. I have enclosed a copy of our business plan for your consideration. With loan money, we believed that we could be in full operation within 18 m nths; without it we sincerely believe we can still meet our 3 year deadline. We would be willing to report to you regularly on our progress and neet all stipulations we agree on. We are prepared to purchase the prop rty immediately and hope that you will allow us to do so. Thank you for your consideration. Sin rely, M Sandra Kieffer for Kieffer /Zimpelman Partnership cc: H Robinson Eugenia Schwartz Enclosure