Loading...
HomeMy WebLinkAboutRM 10-09-87October 9, 10:00 a.m. Presiding C 1. ROLL Members Legal G Redeveb News Me( Others: 2. APPROVA] 3. SOUTH BEND REDEVELOPMENT COMMISSION REGULAR SCHEDULED MEETING 987 1200 County -City Building 227 W. Jefferson Boulevard ficer: 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. Michael Doncho, Assistant Secretary Absent: Mr. Sandy Combs Ms. Eugenia Schwartz Staff: Mr. Jon R. Hunt, Executive Director Mrs. Ann E. Kolata, Deputy Executive Director Mrs. Cheryl Phipps, Office Manager Ms. Hedy Robinson Mr. James Wensits, South Bend Tribune Mr. Mr. Dick Maginot, WSBT -TV Mr. Abraham Marcus, Ivy Tower Corporation Mr. Simon Brazy, Let's Talk Travel Ms. Sandra Kieffer , OF MINUTES Upon a inotion made by Mr. Piasecki, seconded by Ms. Auburn and unanimously carried, the minutes of the Regular Meeting of Friday, Septeinber 25, 1987 were approved. OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, SEPTEMBER 25, 1987 Upon a motion made by Ms. Auburn, seconded by COMMISSION FORMALLY APPROVED THE Mr. Don ho and unanimously carried, the CLAIMS SUBMITTED SEPTEMBER 28 Commission formally approved the claims AND OCTOBER 5, 1987 AND ORDERED submitted September 28 and October 5, 1987 and CHECKS DATED OCTOBER 2,AND OCTOBER ordered checks dated October 2 and October 9, 9, 1987 TO BE RELEASED 1987 to be released. ADMIN 1 John Ma ch Global ipment Company -1- $ 1,106.21 37.30 110.00 South Bend Regular Me 3. APPROV 4. tedevelopment Commission :ing - October 9, 1987 OF CLAIMS (Cont.) Ann Kol to Indiana Bell Communication Jon R. Hunt Business Systems City of South Bend City Clerk Community Documents Service Indiana Business Magazine Keener Printing Company Ludwick Graphics Inc. Making Cities Livable National Council Urban Economic Development Ziker -S annon Catering Inc. Bethel ollege Total Admin 1987 T.I.F. 1985 Univers 1 Painting Ken Her eg & Associates, Inc. Ken Her eg & Associates, Inc. South Bend Tribune Tot 1 T.I.F. 1985 T.I.F. 986 Kaser -S raker Construction, Inc. Shilts raves & Associates To 1 T.I.F. 1986 There were no communications. 5. OLD BUSINESS a. Staff report on L. Keen Building. Mr. Hunt noted that at the September 25th Co ssion meeting the Chair directed the staff to consider two different options to enable the Kieffer- Zimpelman Par nership to proceed with renovation of the L. Keen Building prior to conveyance of he property. -2- 164.09 296.68 86.39 759.00 3.30 239.00 22.05 836.00 294.70 169.95 575.00 18.00 39.00 $ 4,756.67 $ 2,339.90 1,000.00 6,805.00 $ 10,187.13 $20,940.88 $21,015.88 $ 35,959.68 THERE WERE NO COMMUNICATIONS South Bend Pedevelopment Commission Regular Me ing - October 9, 1987 5. OLD BUSINESS (Cont.) a. (-�ominuea... Mrs. Kolata explained that she had met with Ms. Kieffer, Brad Zimpelman, Hedy Robinson and Ms. Schwartz and that they had agreed to an arrangement similar to a lease whereby they would make monthly pa ents which would be applied toward the purchase price. The payments would begin November 1, 1987, and would be $275 per month for the first 12 months, $400 per month for the second 12 months, $550 per month for the third year, and approximately a $6,000 balance at the end of that third year. If at any time during the three year period they are suc essful in securing finacing for the project, they would pay the remainder of the $20,000 purchase price at once. TheY have agreed to a timetable for the ren vation: Phase I, the antique store, wou d be started November 1987 and com leted in June 1988; Phase II, the apartments, would be started in February 1989 and completed in August 1989; and Phase III, the deli, would be started in April 1990 and completed in October 1990. This plan coincides with the terms of the Con ract for Sale of Land which gave them three years from the date of acquiring title to complete renovation. This arrimgement would require an amendment to the Contract to give them three years from the date the agreement is signed to co fete renovation instead of three years from the conveyance of title. They wou d be required to obtain insurance on the property, with the City and the Redevelopment Commission named as co-insureds. The partnership understands that if they do not meet the time schedule or are unable to make payments they stand to lose the property. Ms. Auburn commended Ms. Kieffer and the Kie fer- Zimpelman Partnership for the determination they have shown in overcoming the obstacles which have fru trated this project. -3- South Bend Redevelopment Commission Regular Me ting - October 9, 1987 5. OLD BUSINESS (Cont.) a. Conitinued... R Upcn a motion by Ms. Auburn, seconded by Mr. Piasecki and unanimously carried, the Cornmission approved the staff report, authorized the execution of appropriate documents, and directed staff to proceed with the arrangements concerning the L. Kee Building. Mrs. Kolata noted that the partnership had planned to petition for tax abatement on the improvements. Since the Comnission would remain the owner of the property indefinitely, it would have to be e party filing the petition. She ask d if the Commission approved. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission authorized the staff to pro3eed with the application for tax abatement on behalf of the L. Keen Bui ding. on meeting with Rev. 1 Mr. Hunt noted that the Zion Missionary Baptist Church is a new congregation and has been using space in the church rented from the Commission by The Greater Christian Tabernacle. Since The Greater Christian Tabernacle is planning to move to their new building at the end of October, Zion Missionary Baptist Church had requested permission to lease the ch ch and eventually purchase and move it to a new location. Mrs. Kolata and Ms. Robinson met with Rev. Derrickson, Pas or, on October 8th. Rev. Derrickson indicated that the congregation would like to lease the building for approximately one year while they raised the money for the move and purchase and found a location to which they could move the church. Due to the many railroad overpasses in the area, the new location wou d likely be in the Monroe Park area. -4- COMMISSION APPROVED THE STAFF REPORT, AUTHORIZED THE EXECUTION OF APPROPRIATE DOCUMENTS, AND DIRECTED STAFF TO PROCEED WITH THE ARRANGEMENTS CONCERNING THE L. KEEN BUILDING COMMISSION AUTHORIZED THE STAFF TO PROCEED WITH THE APPLICATION FOR TAX ABATEMENT ON BEHALF OF THE L. KEEN BUILDING South Bend Pedevelopment Commission Regular Me ing - October 9, 1987 5. OLD BUSINESS (Cont.) b. Conitinued... The Greater Christian Tabernacle currently leases the building for $300 per month. Zion Missionary Baptist has asked that the rent be reduced to $150 per month. They would assume res nsibility for all operating costs as well as insurance and maintenance. Mr. Nimtz noted that he believes HUD regulations require a new tenant to lease at Lhe same rate as the previous tenant. Mr. Piasecki asked where the Zion Mis ionary Baptist congregation met bef re using this church. Mrs. Kolata resconded that they were a newly formed con regation and that this was their fir t location. MSchwartz commented that there may be restrictions on the sale of property to i church and she will research this. Upon a motion by Mr. Piasecki, seconded byj4r. Donoho and unanimously carried, the Commission approved a one year lease to 7,ion Missionary Baptist Church at the rate of $300 per month. Mr. Nimtz directed the staff to investigate policy regarding rental rates and sale of property to a church. He also stressed that there is no approval being given at this time concerning the fut e relocation of the building. 6. NEW BUS a. CorraAssion approval requested for Resolution No. 814 approving an app ication for real property tax deduction for Simon M. Brazy. Ms. Robinson summarized the staff report on the petition. She noted that Mr. Bra y's building is located at 228 -230 S. Mic iQan Street. -5- COMMISSION APPROVED A ONE YEAR LEASE TO ZION MISSIONARY BAPTIST CHURCH South Bend edevelopment Comunission Regular Me ing - October 9, 1987 6. NEW BUSINESS (Cont.) a. Continued... Statement of Benefits petitioner proposes to restore the !rior of the building to its original :arance. This will improve the arance and structural condition of building. The project will maintain six (6) pe ent fulltime jobs with an annual pay rll of $33,020.00. The total project cost is estimated to be $37 000. pct on the Tax Rate 1. If the proposed redevelopment does not occur, the tax rate for 1986 pay 1987 wil remain at 15.0781. 2. If the proposed redevelopment does occ and no abatement is granted, the tax rate for 1986 pay 1987 would be 15.778. 3. If the proposed redevelopment occurs, the deduction is granted, and an abatement percentage of 50% is assumed, the tax rate would be 15.0779. The property is properly zoned for the proposed use. The property is located in an area designated as a Tax Abatement ImVLct Area and is also located in a Tax Incremental Financing Allocation Area. The petitioner has indicated that he will conform with the Development Plan and Design Guidelines for the South Bend Central Development Area and review by the Design Review Committee. Based on this information, the property qualifies for a six year abatement. of Mr. .er City Associates and the Department ,conomic Development have worked with Brazy for many months concerning South Bend Redevelopment Commission Regular Me ting - October 9, 1987 6. NEW BUSINESS (Cont.) a. uonrinuea... re ovation of the facade of the building. It was impossible to determine what type of renovation could occur until the covering of the facade was removed. For this, a demolition permit was necessary and was acquired. Once the covering was removed and the condition of the building exterior was known, the plans for the renovation were made. No building permit has been issued for this renovation. Mr. Hunt noted that no building permit was issued; however, a demolition permit to allow the exterior covering to be r ved was issued. He indicated that the staff and Center City Associates had urg d Mr. Brazy to have the covering re ved prior to planning the renovation to etermine what condition the former facade was in and whether.it could be restored. He indicated that the ren vation plans for the building are exciting and will add a great deal to the str etscape on S. Michigan Street. The staff recommends approval of the petition. Mr. Brazy stated that he was pleased to be Part of the good things going on do town and was excited about the pl ed renovation. Mr. Piasecki asked if Mr. Brazy had ass d the cost of the preliminary r val of the covering. Mr. Brazy indicated that he had. Upon a motion by Mr. Piasecki, seconded by 14s. Auburn and unanimously carried, the Commission approved Resolution No. 814 approving an application for real property tax deduction for Simon M. Brazy at 28 -230 S. Michigan Street. b. Connission approval requested for Resolution No. 815 approving an application for real property tax -7- COMMISSION APPROVED RESOLUTION NO. 814 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR SIMON M. BRAZY AT 228 -230 S. MICHI- GAN STREET South Bendedevelopment Commission Regular Me ting - October 9, 1987 6. NEW BUSINESS (Cont.) b. Continued... f or located at 635 S. Mr. Hunt indicated that he has a conflict of interest on this issue because a firm leasing space from the petitioners involves one of his brothers. He turned the discussion over to Mrs. Kolata. Ms. Robinson summarized the staff report. The property in question is owned by ,Ivy Tower Corporation. of Benefits petitioner has acquired the Shetland erty at 635 S. Lafayette for the ose of operating a warehouse and ribution center. The project will create four (4) new, pe ent jobs within the first year, wi a new annual payroll of $80,000 and will maintain eight (8) existing perTanent full time and four (4) existing pe ent part time jobs with an annual pa oll of $117,800. The total project cost is estimated to be $50 ,000. act on Tax Rate 1. lIf the proposed redevelopment does not occur, the tax rate for 1986 pay 1987 will remain at 15.0781. 2. If the proposed redevelopment does occ r and no abatement is granted, the tax rate for 1986 pay 1987 would be 15.D740. 3. If the proposed redevelopment occurs, the deduction is granted, and an abatement percentage of 50% is assumed, the tax rate would be 15.0761. I:M South Bend Pedevelopment Commission Regular Me ing - October 9, 1987 6. NEW BUSIINESS (Cont.) b. Conjtinued... The property is properly zoned for the proposed use. The property is located in an area designated as a Tax Abatement Impact Area and is also located in a Tax Incremental Financing Allocation Area. Mrs. Kolata noted that the legal description provided was a description of the property and various easements. She suggested that Mr. Marcus talk to the City Attorney about amending the petition to escribe only the property itself and notl the easements. Mr. Marcus explained that the improvements to the property were to increase the warehousing and distribution operation currently in business there. He aoted that a misunderstanding of the questions on the petition had resulted in an error in the number of jobs proposed to De created by the improvemements. Question #4 asked the number of jobs to be created by the rehab project itself. He derstood that to mean the actual construction work involved and had answered "4 ". In fact, 25 new jobs would be reated as a result of the rehab. The 25 new jobs would qualify Ivy Tower for a ten year abatement. He would target 200 of he new jobs to the Job Training Ms. Auburn asked that this petition be tabled until the October 23 meeting so that the corrected information could be Ms. Schwartz noted that none of the inf rmation is changed. The petition, as pre ented, includes the correct inf rmation in item #26. There is no ch ge of representation by the Det'tioner. Ms.�Auburn stressed the significant dif erence in impact betwen the three and mom South Bend Oedevelopment Commmission Regular Me ing - October 9, 1987 6. NEW BUSIINESS ( font . ) b. Continued... year abatements and the importance of idering the petition based on gate figures. Mr. Nimtz asked if there were any ITEM 6.b. WAS CONTINUED UNTIL obj ctions to continuing item 6.b. until THE OCTOBER 23RD MEETING the October 23 meeting. There were none and the item was continued. Mr. Hun noted that work has begun on the PROGRESS REPORTS River G en South building in Monroe Park. He also no ed that there has been quite a bit of activit across from Howard Park preparing for a 40,00 s.f. office building. Mr. Nim z thanked Mr. Wensits for his great story o# the Studebaker Corridor. 8. NEXT g2t24ISSION MEETING The ne# Redevelopment Commission meeting is schedulod for Friday, October 23, 1987, 10:00 a.m. Mr. Nim z asked the members of the Commission if they wanted to reschedule the November 27 meeting which falls on the day after Thanksgiving. Mr. Pia ecki made a motion that the November 27 meeting be rescheduled for Wednesday, November 25, at 10:00 a.m. Mr. Donoho secondal the motion and it was carried. Mr. Maginot asked if there was anything to report on the proposal for the garage. Mr. Hunt indicated that the staff had met with the firm's financial consultant and the City Attorney's office to review the proposal. There were a lot of questions left outstanding. The staff was asking for more detail regarding construction budget and schedule. He noted that, although he had express d the desire to present recomme dations to the Board of Public Works -10- NEXT COMMISSION MEETING NOVEMBER 27 REGULAR MEETING RESCHEDULED South Bend Redevelopment Commission Regular Me ting - October 9, 1987 8. NEXT CCMMISSION MEETING (Cont.) in two weeks, he now thought that we would not be ready by that time. Mr. NiiTtz announced that the Executive Session would reconvene immediately following the adjour ent of the regular meeting. 9P There being no further business to come before ADJOURNMENT the Commission, Ms. Auburn made a motion that the meeting be adjourned. Mr. Doncho seconded the motion and the meeting was adjourned at 10:45 a.m. e , Yreslaent - -'-Am JQn K. taunt, txecutrive -11-