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Home My WebLink AboutRM 11-12-87SOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULED REGULAR MEETING November 12, 1987 1200 County -City Building 10:00 a.m. 227 W. Jefferson Boulevard Presiding 0 ficer: Mr. F. Jay Nimtz South Bend, Indiana 46601 President 1. ROLL 2. 3. Members Present: Mr. F. Jay Nimtz, President Mr. Roman J. Piasecki, Secretary Mr. Michael Donoho, Assistant Secretary Mr. Sandy Combs Members Absent: Ms. Paula Auburn, Vice - President Legal C unsel: Ms. Eugenia Schwartz Redevel pment Staff: Mrs. Ann E. Kolata, Deputy Executive Director Mrs. Cheryl Phipps, Office Manager Bureau Df Housing Staff: Ms. Mr. News Me ia: Ms. Mr. Mr. Others: Mr. Ms. Mr. APPROVAL OF MINUTES Kathy Baumgartner, Director Ted Leverman Jeanne Derbeck, South Bend Tribune Gary Sieber, WNDU -TV Dick Maginot, WSBT -TV Richard Treptow, Springsted, Inc. Loren Rooney, Springsted, Inc. Richard Hill, Parker & Jaicomo Upon atnotion made by Mr. Piasecki, seconded COMMISSION APPROVED THE MINUTES OF by Mr. Combs and unanimously carried, the THE REGULAR4,1EEPING OF FRIDAY, minutes of the Regular Meeting of Friday, OCTOBER 23, 19:87 WERE APPROVED October 23, 1987 were approved. OF CLAIMS Upon atnotion made by Mr. Combs, seconded by COMMISSION FORMALLY APPROVED THE Mr. Don ho and unanimously carried, the CLAIMS SUBMITTED OCTOBER 26, NOVEMBER Commission formally approved the claims 2, AND NOVEMBER 6, 1987 AND ORDERED submitt d October 26, November 2, and November CHECKS DATED NOVEMBER 1, NOVEMBER 6, 6, 1987 and ordered checks dated November 1, AND NOVEMBER 13, 1987 TO BE RELEASED Novembe 6, and November 13, 1987 to be release . -1- South Bend edevelopment Commission Rescheduled Regular Meeting - November 12, 1987 3. APPROVAL OF CLAIMS (Cont.) ADMIN 1987 AAY's nt-All Co. Inc. A.C.I. . Publications Calculated Industries Inc. Farmer's Garden Catering Federal Express lst Source Bank Auto Leasing Forbes, Inc. Gene's era Store Jon R. iunt Hurtt K n=ick & Associates Indiana Chamber of Commerce Service America Corporation Ziker -5 annon Catering Inc. John March - Petty Cash Warren, Gorham & Lamont ZHA, In::. Visualo Busines3 Systems, Inc. Jon R. iunt Ann Kol to Seifer afe & Lock, Inc. 4. To +--61 Admin 1987 T.I.F. T85 R.E. McCloskey Schuell Fence Company Delta Star Electric Inc. Indiana & Michigan Electric Company Total T.I.F. 1985 T.I.F. 1.986 Conay Inc. T.I.F. 1985 There T.I.F. 1986 Total no communications. -2- 294.00 10.00 33.45 599.38 112.25 231.71 45.00 16.81 22.64 200.00 60.00 429.63 241.10 104.68 83.55 1,718.85 37.59 44.85 22.69 6.00 65.66 $ 4,547.84 $ 1,000.00 2,220.00 1,725.00 $ 4,964.90 $ 270.00 6,649.10 $ 6,919.10 $ 16,431.84 THERE WERE NO COMMUNICATIONS South Bend Pedevelopment Commission Rescheduled Regular Meeting - November 12, 1987 5. OLD BUSINESS There was no old business. 6. NEW BUSINESS b. Cc ssion approval requested for Certificate of Completion for One Michiana Square Associates. Mrs. Kolata noted that the property was soll to One Michiana Square Associates in 198 subject to the t.e, -ir,:_ of a Contract for Sale.of Land. One Michiana Square Ass ciates has completed construction in compliance with that Contract and the Comnission is asked to approve a Certificate of Completion which will allow them clear title to the property. Upon a motion by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the Comnission approved the Certificate of Co letion for One Michiana Square Associates. c. Comnission approval re rescission of contract the Rental Rehab Progr ted for connection with Contractor THERE WAS NO OLD BUSINESS COMMISSION APPROVED THE CERTIFICATE OF COMPLETION FOR ONE MICHIANA SQUARE ASSOCIATES Loan Jolene Newton Townsend Construction $ 4,319.00 $ 2,275.00 915t W. Lasalle Mrs Kolata noted that there are two additional requests for rescission of con ract. She passed out information on the additions. Contractor NHS NHS 904 - 9042 E. Corby NHS NHS 906 - 908 E. Corby Mrs Kolata explained that the tenant mov d out of the unit at 9151 W. Lasalle aft r the loan was approved. After she 3 $ 17,400.00 (Public) $ 19,740.00 (Private) $ 17,400.00 (Public) $ 22,800.00 (Private) South Bend edevelopment Commission Rescheduled Regular Meeting - November 12, 1987 6. NEW BUS NESS (Cont.) c. uonrcinuea... moved out it was discovered that more wor was necessary than originally pro Dosed. The revised proposal is listed for approval with the loans in item 6(d). The E. Corby Street loans were approved for Neighborhood Housing Services. NHS, however, has entered into a partnership with the Housing Development Corporation and the loans should have been approved in the name of East Corby Partnership. The corrected loans are listed for app oval with the loans in item 6(d). Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved the rescission of con racts for the Rental Rehab Loans listed above. d. Comnission approval requested for proposals and loans in connection with the Rental Rehab Program in accordance with the recorrmendation from the Bureau of Housing. Na; Contractor Jol ne Newton 915 2 W. Lasalle R. teve Gay 520 N. Notre Dame/ 902 E. Miner 717 HDC 511 HDC 431 COMMISSION APPROVED THE RESCISSION OF CONTRACTS FOR THE RENTAL REHAB LOANS LISTED ABOVE Townsend Construction $ 6,100.00 R. Steve Gay Sing Development Plaia Construction )oration of St. Kph County (HDC) E. Broadway N. Blaine Cottage Grove $ 31,571.00 $ 30,228.00 Townsend Construction $ 37,846.00 Ward Construction -4- $ 36,501.00 $ 3,529.50 (Public) $ 3,254.00 (Private) $ 15,000.00 (Public) $ 17,720.00 (Private) $ 8,700.00 (Public) $ 15,683.25 (Public CD) $ 8,127.75 (Private) $ 8,700.00 (Public) $ 21,724.00 (Public CD) $ 10,141.50 (Private) $ 17,400.00 (Public) $ 11,775.00 (Public CD) $ 9,725.00 (Private) South Bend edevelopment Commission Rescheduled Regular Meeting - November 12, 1987 6. NEW BUSINESS (Cont.) d. Co inued... Contractor Plaia Construction $ 22,356.00 3021E. Indiana HDC 2081E. Indiana East Corby Partnership NHS (Neighborhood Housing Services and Housing Dev lopment Corporation) 914-9141 2 E. Corby Ti thy E. Mathias Paul Hayden 702 W. LaSalle Madison Center Madison Center 130 S. Taylor East Corby Partnership NHS 906-908 E. Corby Eas Corby Partnership NHS 904-904-1 2 E. Corby Mrs Kolata noted that the application for Madison Center is not complete and wil be tabled until the next meeting. She explained that these Rental Rehab Loans represent over $309,000 of investment, public and private, into rental units in inner -city neighborhoods. There are a total of 16 units. Many of thein are for problem properties She also explained that Rental Rehab Loans are ten year loans. If the units are rented to low /moderate income families, they are forgiven at the rate of 0% a year if they meet yearly inspection requirements. -5- $ 41,00.00 $ 30,273.00 $ 56,730.00 $ 29,832.00 Loan $ 8,700.00 (Public) $ 9,416.00 (Public CD) $ 6,039.00 (Private) $ 17,400.00 (Public) $ 15,304.00 (Public CD) $ 10,901.00 (Private) $ 15,700.00 (Public) $ 15,700.00 (Private) $ 26,100.00 (Public) $ 32,300.00 (Private) $ 15,066.00 (Public) $ 15,066.00 (Private) $ 17,400.00 (Public) $ 22,800.00 (Private) $ 17,400.00 (Public) $ 19,740.00 (Private) South Bend edevelopment Commission Rescheduled Regular Meeting - November 12, 1987 6. NEW BUSMSS (Cont.) d. Continued... Mr. Piasecki asked how it is determined tha the proposals of owner - general con ractors are realistic proposals when there is no bid against them. Mrs. Kol to explained that they are compared to the Bureau of Housing cost estimate. Ms. Schwartz asked if the owner- general is required to demonstrate that he is capible of doing general contracting. Ms. Baumgartner responded that he is. Mr. Piasecki asked for an explanation of the use of Community Development money. Ms. Baumgartner explained that the maximum. Rental Rehab amount which can be allocated is $87,000 per unit (federal pub is money). One quarter of the total project cost must be conventionally financed (private money). The remainder can be allocated from Community Development Block Grant funds to make the project more feasible to the owner. Mr. Piasecki asked for an explanation of how the HDC would be the general con ractor. Ms. Baumgartner explained that the Housing Development Corporation wou d solicit and retain subcontractors for the various aspects of the re bilitation work. Upon a motion by Mr. Donoho, seconded by COMMISSION APPROVED THE PROPOSALS Mr. Piasecki and unanimously carried, the AND LOANS IN CONNECTION WITH THE Comaission approved the proposals and RENTAL REHAB PROGRAM loans in connection with the Rental Rehab Pr ram in accordance with the rec mmendation from the Bureau of a. (1) Commission approval requested for Resolution No. 821 Finding and Determining that Payments of Propert. Proceeds from the Allocation Fund to Respective Taxing Units shall not be zed. Tax South Bend edevelopment Commission Reschedule(I Regular Meeting - November 12, 1987 6. NEW BUSINESS (Cont.) a. (1) Continued... Mrs. Schwartz requested that this item be added to the agenda prior to consideration of Item 6a. This resolution is related to a new provision in the State Law that allows the Redevelopment Commission to permit extra tax proceeds to go to other taxing jurisdictions if they are not needed by the Commission for eligible TIF purposes and if it would not endanger existing bonds. We have received a letter from Spr'ngsted, Inc., our financial advisor, stating that since our bonds are payable solely from revenues, and since the Co ssion intends to issue a new bond payable solely from TIF revenues, it is Spr'ngsted's opinion that all tax increment must be allowed to accumulate as security for the bonds. Resolution No. 821 states that the Commission will not authorize payments of excess TIF tax pro eeds to the other taxing Jurisdictions because to do so would end er the interest of the bond hol ers. Mr. Richard Treptow of Springsted, Inc., added that without this resolution, we wou d have a difficult time marketing our new bonds. Upo a motion by Mr. Combs, seconded by COMMISSION APPROVED RESOLUTION NO. 821 Mr. Donoho and unanimously carried, the Comaission approved Resolution No. 821. a. Commission approval requested for iss !nce of bonds on parity with the City of outh Bend Redevelopment District Tax Increment Revenue Bonds of 1985 and the City of South Bend Redevelopment District Tax Increment Revenue Bonds of 1986 for ition and redevelopment in tY Bend Central Allocation Area. -7- South Bend edevelopment Commission Rescheduled Regular Meeting - November 12, 1987 6. NEW BUSINESS (Cont.) a. Uonitlnuea... Mrs. Kolata explained that Resolution No. 819 authorizes the Commission to iss e tax increment revenue bonds in the amo t of $1,800,000 for use in the South BenJ Central Development Area. The pro eeds from the bonds would be used for major public works improvements throughout the Area including street and sid walk improvements along Niles Avenue, a destrian plaza next to the office bui ding proposed for the corner of Mic igan and Washington, improvements for AMTRZAK at Union Station, acquisition of vacant residential lots in Monroe Park, par ing lot improvements in the downtown and pedestrian walkways in the East Bank. She also explained that the Niles Avenue project would be similar to the imp ovements made on Michigan Street al ough it will not always be possible to Drovide parking on both sides of the street. The Niles Avenue improvements wilL be phased, with initial construction to De in the area between Cedar and LaS lle and the block between Jefferson and Washington. Mr. Nimtz commented that the public seems to Like the Michigan Street improvements and he thinks the improvements to Niles Avenue will add a lot to the East Bank. a. (2) One a motion made by Mr. Piasecki, ded by Mr. Combs and unanimously .ed, the Commission approved ution No. 819. Filing of Resolution No. 820, elemental Appropriation Resolution City of South Bend Redevelopment xict Tax Increment Revenue Bonds of i. and authorizina publication of UjDilc emental I:II COMMISSION APPROVED RESOLUTION NO. 819 South Bend Redevelopment Commission Reschedule Regular Meeting - November 12, 1987 6. NEW a. (Cont.) (2) Continued... Mrs. Schwartz explained that Resolution No 820 is not being acted upon at this time but is being filed with the Co scion for action at the Commission M ting on November 27th. The Commission is also being asked to set November 27 at 10:00 a.m. as the time and date of the public hearing on the proposed appropriation and to authorize publication and posting of notice of the proposed appropriation of bond proceeds an4 public hearing. The publication date of this notice will be November 13, 1987. fi wit 13, 7. PROGRES There 8. NEXT CC a a motion made by Mr. Donoho, )nded by Mr. Combs and unanimously -ied, the Commission authorized the ng of Resolution No. 820, set -tuber 27, 1987 as the date of the is hearing on the proposed opriation of bond proceeds and orized publication and posting of the ce of public hearing concerning the osed appropriation of bond proceeds the publication date to be November 1987. REPORTS no progress reports. iSION MEETING COMMISSION AUTHORIZED THE FILING OF RESOLUTION NO. 820, SET NOVEMBER 27, 1'987' "AS'THE DATE OF THE PUBLIC HEARING ON THE PROPOSED APPROPRIATION OF BOND PROCEEDS AND AUTHORIZED PUBLICATION AND POSTING OF THE NOTICE OF PUBLIC HEARING CONCERNING THE PROPOSED APPROPRIATION OF BOND PROCEEDS WITH THE PUBLICATION DATE TO BE NOVEMBER 13, 1987 The ne Regular Meeting of the Redevelopment NEXT COMMISSION MEETING Commission will be held on November 27, 1987 at 10:0 a.m. the mee This wi 27, 198 There the C ly, notice had been sent that changed ing date to Wednesday, November 25th. 1 be changed back to Friday, November at 10:00 a.m. no further business to come before ADJOURNMENT on, Mr. Piasecki made a motion South Bend Reschedule 9. ADJO that redevelopment Commission Regular Meeting - November 12, 1987 ENT (Cont.) meeting be adjourned. Mr. Donoho the motion and the meeting was d at 10:55 a.m. Pre dent Ann E. Kolata, I -10- G� Executive Director