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HomeMy WebLinkAboutRM 04-15-88April 15, 19B8 10:00 a.m. Presiding Officer: 1. ROLL CALL Members Preser Members sent Legal Counsel: Redevelo ent 2. 3. News Others: SOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULED REGULAR MEETING 1200 County -City Building 227 W. Jefferson Boulevard Mr. F. Jay Nimtz South Bend, Indiana 46601 President t: Mr. F. Jay Nimtz, President Ms. Paula N. Auburn, Vice - President Mr. Roman J. Piasecki, Secretary . Mr. Sandy Combs, Assistant Secretary Mr. Michael Donoho Ms. Carolyn Pfotenhauer Staff: Mrs. Ann Kolata, Acting Executive Director Mrs. Cheryl Phipps, Office Manager Mrs. Hedy Robinson Mr. Rick Pitts OF MINUTES Ms. Jeanne Derbeck, South Bend Tribune Mr. John Voorde, President, South Bend Common Council Mr. Steve Luecke, South Bend Common Council Mr. H. Eugene Conard, Mill Race Partnership Mr. Merrill Jones, Merrill Jones Architects Mr. Michael Jones, Merrill Jones Architects Mr. John Barris, South Bend Associates Limited Partnership Mr. James A. Cook, James A. Cook and Associates Mr. Carter Wolf, Center City Associates Ms. Lynn Weber, Can- American South Bend Limited Partnership Ms. Eugenia Schwartz, Nickle and Piasecki Upon a otion made by Mr. Piasecki, seconded by Ms. Auburn and unanimously carried, the minutes of the Regular Meeting of Friday, March 25, 1988 were approved. Upon a Mr. Pie OF CLAIMS made by Ms. Auburn, seconded by and unanimously carried, the -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY MARCH 25, 1988 South Bend RE Rescheduled ] opment Commission r Meeting - April 15, 1988 3. APPROVALIOF CLAIMS (font.) Commission formally approved the claims COMMISSION FORMALLY APPROVED THE submitted March 28, April 4, and April 11, CLAIMR SUBMITTED MARCH 28, APRIL 4, 1988 and ordered checks dated April 1, April AND APRIL 11, 1988 AND ORDERED 8, and April 15, 1988 to be released. CHECKS DATED APRIL 1, APRIL 8, AND APRIL 15, 1988 TO BE RELEASED ADMIN 1 88 First Source Bank Auto Leasing $ 463.30 General Fund (T.C.I. Telephone) 353.04 Business Week 39.95 Century Center 225.00 Center for Neighborhood Technologies 18.00 Communi y Information 10.00 First Source Bank Auto Leasing 231.71 First Community Mortgage Corporation 198.00 Gene's Camera Shop 10.37 Jo's Deli 19.29 P.D.H. office Supply 858.00 Berreth Oil Company 22.36 City Clerk's Office 14.75 Council of State Community Affairs 16.50 General Fund - Postage 190.58 Fundraising Institute 55.00 Illinois Issues 22.00 Indiana Bell Communications Inc. 296.68 NationaL Congress for Community Economic Development 20.00 David A Roos 160.29 S.C.L. Comunications 42.90 Service America 80.26 South nd Drafting 46.51 Urban Lind Institute 32.50 Urban Resources, U. of Cincinnati 25.00 Total Admin 1988 ADMIN 1987 General Fund (T.C.I. Telephone) Tot 1 Admi_n 1987 T.I.F. 1986 Nickle Piasecki To 1 T.I.F. 1986 -2- $ 3,451.99 $ 1,164.89 $ 1,164.89 $ 617.06 $ 617.06 South Bend Redevelopment Commission Rescheduled Regular Meeting - April 15, 1988 3. APPROV OF CLAIMS (font.) T.I.F. 1988 Nickle & Piasecki Midwest Bank Note Co. T.I.F. Allocation Debts Acct. T.I.F. Allocation Debts Acct. Springs ed Inc. Department of Redevelopment Total T.I.F. 1988 Grar d Total EN There were no comunications. 5. OLD BUSINESS There was no old business. 6. NEW BUSINESS a. Public Hearing on the South Bend Central Development Area with respect to Resolution No. 836 confirming Resolution No. B34, expanding the boundaries of the Sou Bend Central Development Area, rede Taring the area as expanded to be blig ted, expanding the allocation area for finaacing, urposes of tax incremental amending the Development Plan and reapprovinq the Development Plan a-- Mrs. Kolata read into the record the items of Public Hearing: 1, Im original of the Notice of Public Hearing of the South Bend Central Development Area. 2. An Affidavit of Carol Smith, Classified Manager of the South Bend Tribune, that Notice of Public Fearing was published in that daily newspaper on April 1, 1988. 3. Pn Affidavit of David Kollar, owner f the Tri- County News, that Notice f Public Hearing was published in at weekly newspaper on April 1, 1988. -3- $ 331.50 752.00 851.50 402.10 27,531.93 11,561.01 $ 41,430.04 $ 46,663.98 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS PUBLIC HEARING ON THE SOUTH BEND CENTRAL DEVELOPMENT AREA WITH RESPECT TO RESOLUTION NO. 836 South Bend edevelopment Commission Rescheduled Regular Meeting - April 15, 1988 6. NEW a. (font.) 4. An Affidavit of Martha Lantz that a Notice of Public Hearing was delivered to Ms. Sharon Roth of the Area Plan Commission, Ms. Sandy Parmerlee of the Board of Public Works, Ms. Joan Evans of the Board of Zoning Appeals and South Bend Building Department, and Mr. Karl Stevens of the Park Department on March 30, 1988 and that a copy of the Notice was posted on the 12th floor of the County -City building on March 30, 1988. 5. An original copy of the Area Plan Commission's Resolution No. 97, which deals with the subject of the Public Hearing. 6. A certified copy of Resolution No. 1598 -88 of the Common Council of the City of South Bend relative to the subject of the Public Hearing. 7. A copy of Resolution No. 834 of the Redevelopment Commission. 8. As of 10:00 a.m. on April 15, 1988, written remonstrances were eceived. Mr. Nimt asked if there was any objection to the rece'ving of these documents into the record. There were no objections and the document were received into the record. Mrs. Kol to explained the purpose of Resolution No. 836. The South Bend Central Develo nt Area is being expanded to include 1.9 acres of the baseball stadium which is outside the development area. The purpose of the expwasion is to have all of the stadium within the boundaries of the development area. Mrs. Kol to also summarized the Findings of Fact for Resolution No. 836. In 1985 the Redevelolxnent Commission declared the South Bend Cenral Development Area to be blighted and conducted a Public Hearing and adopted certain tindings of Fact based on evidence of blight at that time. These Findings have -4- South Bend 4edevelopment Commission Rescheduled Regular Meeting - April 15, 1988 6. NEW BUSINESS (Cont.) a. c:onainuea... been affirmed on four other occasions since that time. The Redevelopment Staff has reexamined that evidence of blight, has presented that evidence to the Common Council on March 28, 1988, and the South Ben Common Council found the area, as expanded, continues to be blighted. In the entire South Bend Central Development Are F, as expanded, 21% of the land is vacant, and an additional 5% of the land is underutilized. The Redevelopment Cormission therefore finds and determines that there is a substantial presence of factors such as excessive vacant land on which structures were previously located, abandoned or vacant buildings, old buildings excessive vacancies, substandard structures and delinquency in payrnent of real property taxes in the Area. Mr. imtz asked if there was anyone who desir ed to be heard. There was no one. Mr. 14imtz concluded the Public Hearing on Resolution No. 836. b. Co ssion approval requested for Reso ution No. 836. Upon la motion by Ms. Auburn, seconded by COMMISSION APPROVED RESOLUTION Mr. iasecki and unanimously carried, the NO. 836 Co 'ssion approved Resolution No. 836. c. comm Re- —so ,:appl abat Sout El -1 Ms. peti subj _ssion approval requested for _ution No. 837 approving an _cation for real property tax ment consideration for Can- American i Bend Limited Partnership (Parcel inson read the staff report. The ner proposes to purchase the property from the Redevelopment ion and construct a 200 unit tial development. The petitioner -5- South Bend F Rescheduled 6. NEW BUS] c. Cont esti Will comp Will job: new totE $7,; ten abat $4,1 estj amol be � 4 ment Commission Meeting - April 15, 1988 (Cont.) gates the construction of the units start September 1988, and will be eted by December 1989. The project create five to six new, permanent within the first year representing a .nnual payroll of $100,000. The project cost is estimated to be 0,000. The project qualifies for ears of tax abatement. Without ment, taxes are estimated to be ,2,830. With abatement, taxes are sated at $2,102,228. The total t of taxes abated are estimated to .,060,602. Ms. Lynn Weber, representing Can- American South Bend Limited Partnership, brought the Commission up to date on the status of the project. They have completed their market research on the area and the repert will be out in final form today. Three lenders are now working on underwriting the project. They will be sent a final financing package with the design development drawings and the market study by next week. The design process is progressing and they have preliminary pricing based on that. The next step is to bring the lenders to South Bend to look at the site and the prof ct. Ms. Neber explained that they are requesting tax abatement because the site specifications dictate a certain quality level and because they have decided to include tucked -under parking which is more costly but will maintain the integrity of the East Bank area. She explained two site plans which are presently being considered. One features townhouse type units. The other site plan features back to back units. The two-unit buildings are more expensive to build but offer more views of the river. The building facing LaSalle Street will have a more urban look to be compacible -6- South Bend Rescheduled lopment Commission ar Meeting - April 15, 1988 6. NEW BUSINESS (Cont.) c. continuea... with the other structures in the area, having three or four floors, elevators and derground parking. Mr. �borde asked if Can -Am had taken the area's water table into consideration in pla ing the tuck -under parking. Ms. Webe responded that they had. Mrs. Kolata noted that Ms. Weber and the arch'tect have been in South Bend twice and have met with the City Engineer, the Building Commissioner, Director of the Area Plan Comanission, a representative from the Fire Dept. and representatives from the Department of Economic Development to make sure that the design was meeting codes and regulations as it was developed. The developer plans to meet with the Design Review Committee Apri 25th prior to attending the Common Coun l meeting for approval of tax Mr. iimtz asked if the market study that Can- had done was favorable. Ms. Weber respDnded that it was very favorable on the urrent absorbtion of new product on the Tiarket. The site itself is very des# able. Population growth was not as rapio as a lender would like, but sati factory. Mr. Conard asked what the rent level would be. Ms. Weber responded that they are tentatively looking at $460 /mo. for a one bedroom unit and $530 /mo. for a two bedroom unit. Parking fees of approximately $25.00 per unit would be extra. Ms. Auburn expressed the opinion that the developer had done a lot of work very fast. Mr. Nimtz agreed. Uponja motion by Mr. Piasecki, seconded by 4. Auburn and unanimously carried, -7- South Bend Redevelopment Commission Rescheduled Regular Meeting - April 15, 1988 6. NEW BUSIPESS (Cont.) c. uonLanuea... the ommission approved Resolution No. 837 approving an application for real pro rty tax abatement consideration for Can-American South Bend Limited d. ComaLssion approval requested for Reso ution No. 838 approving an application for real property tax abat nt consideration for South Bend Associates Limited Partnership (105 E. Jeff rson). Mrs. Kolata noted that this building will be referred to in the future as the 105 E. Jefferson Building, but is better kno now as the Sherland Building. Ms. Robinson gave the staff report. The peti ioner proposes to rehab the Sherland Building in downtown South Bend. The rehaD will consist of a new first floor exte for facade, extensive mullion and trim work to the upper seven floors, restructuring of the lobby, and reconditioning of all the interior corridors. Upon completion of rehab work the property will continue to be used as an office building. One full or part time job may be created as a result of this project. The total project cost is estimated to be $2,000,000. The project qualifies for ten years of tax abatement. Without abatement, taxes are estimated to be $ ,074,280. With abatement, taxes are estimated to be $542,512. The total amo t to be abated is estimated to be $531,768. Mr. John Barris explained that they were asking for tax abatement because the building is presently leased at only 40% and does not generate enough revenue to keep up with current debt service. They are lanning extensive rehab of the buil ing. They are changing the exte ior, removing the wood trim around COMMISSION APPROVED RESOLUTION NO. 837 APPROVING AN APPLICATION FOR REAL PROPERTY TAX ABATEMENT CONSIDERATION FOR CAN - AMERICAN SOUTH BEND LIMITED PARTNERSHIP South Bend RE Rescheduled ] 6. NEW BUSI] d. Cont: lopment Commission ar Meeting - April 15, 1988 (Cont.) the windows and replacing it with green marb e. There will be bronze glass in first floor windows. The interior will be restructured to create a lobby entrimce on the Michigan Street side as well as the Jefferson Street side. Mr. Barris explained that although the immediate effect will not be to create new jobs, as tenancy increases, they expect to hire a secretary and an additional maintenance person. To entice new tenants to the South Bend area and to their building, Mr. Barris indicated that they plan to offer from six months to one year of free rent for a five year lease. Mrs. Kolata indicated that this project was pproved by the Design Review Co ttee a month ago. Upon a motion by Ms. Auburn, seconded by Mr. Diasecki and unanimously carried, the ConmLssion approved Resolution No. 838 approving an application for real pro rty tax abatement consideration for SO4 Bend Associates Limited Part ership. e. Co ssion approval requested for Resolution No. 839 a Resolution of the Sout1i Bend Redevelopment Commisiion approving a proposed lease between the South Bend Redevelopment Authority and the outh Bend Redevelopment Commission Facility, setting a public hearing on the proposed lease pursuant to I.C. 36-74-14-25.2. and authorizing publication of Notice of Hearing. Mrs. Kolata explained that this is the Co ssion's first step in the financing mechimism for the proposed parking garage at the corner of Wayne and St. �L COMMISSION APPROVED RESOLUTION NO. 838 APPROVING AN APPLICATION FOR REAL PROPERTY TAX ABATEMENT CON- SIDERATION FOR SOUTH BEND LIMITED PARTNERSHIP South Bend ' Rescheduled opment Commission r Meeting - April 15, 1988 6. NEW BUSINESS (Cont.) e. continuea... Jose h Streets. The Redevelopment Authority met on April 14th and approved the orm of the lease. She noted that the inancing for the parking garage will be a revenue bond that will be sold by the South Bend Redevelopment Authority. That bond will be retired by lease paym nts that the Commission will make to the Redevelopment Authority. Mrs. Kolata noted that this is a form of the lease. The ease is expected to change before it is finalized. The lease payment desi3nated in the proposed lease, $520,000 per year, is a maximum figure. All Df the assumtions which go into selling the bond are not finalized. Since the amount cannot be raised once the process is begun, the financial cons ltant, Springsted Inc., has conservatively estimated the lease payment at the highest likely figure. Mrs. Kolata noted that this Resolution sets a public hearing on the proposed leasD for April 29 at 10:00 a.m. The prof ct will be bid through the Board of Public Works in May. By the time the lease goes to the Common Council the construction bids will have been received, the determination to make the bond taxable or tax exempt will have been made, and we will have a better idea abou the interest rate of the bonds. The next step will be to seek approval of the inancing from the Local Property Tax Control Board in June. By that time the cons ruction contract will have been away ed. Therefore, the costs will be fina ized as the various steps are Ms. Auburn asked what the proposed annual revenue is. Mrs. Kolata responded that the revenue which will be used to make the lease payments will come from the net operating income of the garage, the One Mich'ana Square UDAG -10- South Bend -development Commission Rescheduled Regular Meeting - April 15, 1988 6. NEW BUS NESS (Cont.) e. Conitinuea... repFLyment and surplus tax increment financing revenue. Mrs Kolata noted that we will be asking for general obligation backup from the Local Property Tax Control Board, but all of the financial projections indicate that there should be no need to levy taxes for the repayment. However, having general obligation backup makes the bonds more desirable and marketable at a lower interest rate. Mr. Piasecki asked what percentage of the payments will come from income from the garage. Mrs. Kolata responded that the market here will not support high enough rent to retire a revenue bond from that so ce alone, so it is a small percentage. The net operating income is pro ected to be just under $100,000 per ve Upo a motion by Mr. Piasecki, seconded by Ms. Auburn and unanimously carried, the Commission approved Resolution No. 839 f. ComnLission approval requested for Resolution No. 840 a Resolution of the South Bend Redevelopment Commission app oving a proposed lease between the South Bend Redevelopment Authoritv and for the Stanley Coveleski Regional Stadium, setting a public hearing on the proEosed lease pursuant to I.C. 36--y-14-25.2, and authorizing publication of tice of the Public Hearing. Mrs. Kolata noted that this is a similar action to that just taken for the lease for the parking garage. The difference is at the stadium is already cons ructed, so construction costs are not unknown. The final financing -11- COMMISSION ADOPTED RESOLUTION NO. 839 South Bend edevelopment Commission Rescheduled Regular Meeting - April 15, 1988 6. NEW BUS$NESS (Cont.) f. Continued... cost is, however, still uncertain. This resolution puts the same procedure in place for starting the refinancing of the stadium. There is a proposed lease between the Redevelopment Commission and the Redevelopment Authority, with a maximum lease payment of $1,000,000 per year. That figure was arrived at by taking the maximum yearly payment which would justify refinancing the stadium. This is a high amount and will be reduced after it is determined whether the bond will be taxable or tax - exempt. It is estimated that the City will be able to sav $200,000 - $900,000 in interest costs by refinancing. Mrs. Kolata noted that all existing agreements with the Park Department and the White Sox team will remain in place. She also noted that this bond has a gen ral obligation backup, and there will continue to be taxes levied to make part of the repayment. The point of the refinancing is, however, to lower the levied amount. Mrs. Kolata noted that this lease will go to the Common Council in early May and to the Local Property Tax Control Board in late May. This resolution sets a public hearing for 10:00 a.m. on April 29th on the terms of the proposed lease. Ms. kuburn asked if Security Pacific needs this action to proceed with refinancing. Mrs. Kolata responded that they do. Ms. Auburn asked if there are agre ents with Security Pacific that they will refinance. Mrs. Kolata res nded that the City has secured the righ to assign the Option to Purchase. The Park Department has assigned that righ to the Redevelopment Authority. The Redevelopment Authority accepted that right at their meeting April 14th. -12- South Bend edevelopment Commission Rescheduled Regular Meeting - April 15, 1988 6. NEW BUSINESS (Cont.) f. Continued... UP o a motion by Mr. Piasecki, seconded by 14s. Auburn and unanimously carried, the Commission approved Resolution No. 840 g. Commission action on Parcels E3 -3, E3 -4 E3-3A, E3 -4A and E9 -11 in the South Ben Central Development Area. Mrs Kolata noted that on March 25th the Co ssion requested that additional information be submitted by the developers. This information was s tted April 8th. The Commission had expressed concerns over the nature and status of the project and who was involved in the partnership. Information was submitted by Mr. Conard and has been reviewed by the staff. Mrs Kolata summarized the history of the pro ect to date. A bid had been received and a contract entered into for Parcel E3- and E3 -4. The developer at that timE was Mill Race, an Indiana Limited Partnership with Richard Blank being 100% general partner. The bid amount was $96,000 and a deposit check was submitted and a Contract for Sale of Land was entered into. The project called for a 17 Etory apartment building connecting to a two level, 300 space garage with the apartment building having 20,000 s.f. of retail space on the first floor and a 7,000 s.f. restaurant on the 17th floor. It as proposed as a $20,000,000 project. There were to be 48 efficiency units, 96 one droom, and 64 two - bedroom units with rents ranging from $390 to $881 per month. On March 6, 1986 a second proposal was received from Mill Race Apartments with Richard Blank as 50% general partner and H. Eugene Conard as 50% general partner. This was for three pieces of property, parcel E9 -11 on the other side of Niles Avenue from the original site, and two smaller pieces, parcels E3 -3A and E3 -4A which was a narrow strip along the original site -13- COMMISSION ADOPTED RESOLUTION NO. 840 South Bend edevelopment Commission Rescheduled Regular Meeting - April 15, 1988 6. NEW BUSINESS (Cont.) g. uonTinuea... ,ertently left out of the original ing. Mill Race Apartments bid the tum bid amount and made the required it. The project proposed at that was the same as had been proposed ously. The developers have never ted a Contract for Sale of Land for parcels. Mrs Kolata noted that the schedule in the Contract for Sale of Land for parcels E3-3 and E3 -4 has not been adhered to. Last summer a default letter was sent to Mill. Race Partnership indicating that the first contract was out of date and the second contract had never been signed and required that both be brought into compliance. In arly March the Commission again asked the partnership to respond by March 25th in order to cure the items listed in the default letter of last July. Mr. Conard met with the staff on March 24th and attended the March 25th Commission meeting and presented information about project. The project described in the March 24th meeting changed again by the March 25th meeting. On March 24th Mr. Conard proposed surface parking only and on March 25th he proposed a two story garage. Also, the project did not include the first floor retail space or l7th floor restaurant. Mrs. Kolata then summarized the information supplied on April 8th. The developer is proposed to be 50% Futures Inc. and 50% H. Eugene Conard and Associates, Inc. They bid the amount preN iously mentioned and did not submit new deposit checks. The proposal calls for 35 efficiency units, 73 one - bedroom units, and 106 two - bedroom units with rents being $435, $685, and $990 per month, respectively. They also submitted certain information on the financing mechanism which would be used and on the con truction of the building itself. The -14- South Bend F Rescheduled 6. NEW BUS] g. Cont opment Commission r Meeting - April 15, 1988 (font.) information from Pepper Construction raised several questions. Its quote is onl good until June 1, 1988 and that datE doesn't coincide with the schedule Mr. Conard has asked the Commission to app .rove. The quote states that the balconies and bay windows shown in the sketch are not included in the quote. Als , the quote assumes surface parking and therefore does not include construction cost for the garage. The project materials would be concrete or mas my face brick and the windows and cur ainwall must not exceed 25% of the space. It calls for the lobby to have eitler a marble or quarry tile floor, the kitchen to have refrigerator, range, cabinets, and plastic laminated counter and no drywall soffits for the cabinets. The bath has ceramic tile at the tub and a vanity with plastic top. There will be two ssenger elevators and one fre' ht /passenger elevator and one coin operlated washer and dryer per floor. Mr. Merrill Jones, a new member of the partnership, explained what his company is and what it has done in South Bend. He noted that the headquarters for Merrill Jones Architects is in Greenwood, Indiana. However, they have worked in South Bend for approximately 20 years. Their first project here was the Cardinal Nursing Home. They also did the Turtle Creek Apartments and a large addition to the Ferris-Lombardy Nursing Home. He explained that Futures Incorporated was organized as a development company about 24 years ago. It has developed many properties, some of which have changed han over the years. Mr. Jones addressed some of the items mentioned by Mrs. Kolata in her summary of the newly supplied project infonration. He assured the Commission that they would negotiate the balcony -15- South Bend 4edevelopment Commission Rescheduled Regular Meeting - April 15, 1988 6. NEW BUSINESS (Cont.) g. uon4inuea... issue with Pepper Construction and that there would be balconies on the apartments. He also reaffirmed their intent to build a two story parking gar ge. He showed a drawing of the proposed building. Mr. Jones noted the balconies and window lines. The colors of the materials were chosen as possible colors and need not be firm. He noted that. the building is now proposed as 18 sto ies. That does exceed the zoning requirements for the area, but they will apply for a variance. Mr. Jones stressed that this would be the finest thing that the had done and they intend for it to be f very high quality. Ms. Auburn expressed her concern over the difficult nature of the project since it was begun. One concern was for the many changes it had incurred. Today there are more changes. Another concern was for the information in the quote from Pepper Construction. She thought it seemed as though Pepper Construction was going out of its way to say that they have very limited responsibility in this project. That would mean that at this point there is still no project management. She was uncomfortable with the rough construction estimate which expires June 1, 1988, especially with Mr. Conard's indication that financing would not be in place until fall, so that a start construction date would be later than that. Ms. Auburn also expressed the opinion that the quality of the Pepper Construction proposal was unacceptable. Ms. Auburn noted that the architect at the time of the original proposal was Barancik who had done considerable design work. There were some qualities and amenities in his proposal which were acceptable to the Commission. The quality proposed in the new terial is totally unacceptable. -16- South Bend Ri Rescheduled ] elopment commission lar Meeting - April 15, 1988 6. NEW BUSINESS ( Cont . ) g. Continued... Ms. Auburn noted that the marketability of tae apartments is still an issue. She pointed out that Mr. Conard had mentioned in e last meeting that there has been great reluctance on the part of the fina cial community to get involved with the project because of the nature of the prof act. Ms. huburn expressed the opinion that the Co mission had been very fair and patient with Mr. Conard and this project during the nearly three years since it was begun. She Celt that it was a project that was not oing to cone together and was not goin4 to happen. She indicated that she was readv to make a motion. Mr. Conard expressed his opinion that this action would be extremely unfair and uninformed. The project has changed only minutely. He pointed to the other developer who had completely abandoned what he originally started to do and has givei the Commission, at best, prel' nary information and the Co mission has accepted that and amended the =tract. He stated that Mill Race, an Indiana Limited Partnership, has supplied financing commitments and comitments from the construction company. The construction company will supply a firmer quote when Merrill Jones Architects supplies them with final drawings. He stated that the Commission hasinuch more from this project than they do from Lynn Weber and her company: a financing commitment, a contractor, an architect, and a plan. He expressed, again, that he thought it very unfair for the ommission to take that attitude. Ms. Auburn noted that the two projects are separate projects and it is the Co mission's practice to deal with each project independently. She stressed that asa South Bend Rescheduled 6. NEW BUS g. Con elopment Commission lar Meeting - April 15, 1988 (Cont.) the Comnission is dissatisfied with this project because it changes so frequently. Mr. Conard asked her to clarify that stat ent. Ms. Auburn indicated that the Commission is still not sure what part Mr. Richard Blank has in the project. She noted that there are assurances from Mr. Conard that Mr. Blank will make assignments, but that there are no guar tees to that. She noted that the wholD design structure was different when the project. was initially presented. The Bara cik designs were presented as complete, for all practical purposes, sinc the project would be built using the same specs as buildings already complete. She noted that the rent structure has continually changed. Mr. Conard explained that the Commission's consultant, Nicholas Jann tta, told them how to change it. Ms. Auburn responded that she really expected the developer to know what the facts, figures, and costs are. Mr. Cona d indicated that they did, and he didn't feel that that had changed in any way. Ms. Auburn responded that she vie that differently. Mr. Conard argued that the City had paid to have a market study done so that the developer would have an independent mark at study. They have subsequently tailored the project to that market stud , because the City had it done, not beca se the developer wanted to change. Ms. Auburn noted that the market study had called into question the concept of the scope of the project. Mr. Conard countered that the market study initially indicated that the project should not be done. A subsequent market study pres ribed a different way of doing the prof ct and the project was redesigned to conf rm to that. :m South Bend ] Rescheduled opment Commission .r Meeting - April 15, 1988 6. NEW BUSINESS (Cont.) g. UontPuea... Ms. Auburn stated that she thought there had been ample opportunity for a developer to nail down this project in the time frame that the Commission has Mr. Conard said that he expected the City to be fair - handed. If the Commission gave the other developer consideration, it s ould give his project consideration. Ms. Auburn responded that they are two separate projects. Mr. Conard responded that the situation is the same. Mr. Conard also indicated that they had offered to purchase the land if the Corrmission would feel more comfortable with that, but the Commission had not desired to sell the land without the project financing in place. Mr. Conard noted that $20,000,000 worth of bDnds have been sold. The bonds don't expire until December and it is the opinion of bond counsel that you cannot do ything with this site until then. He eKpressed the opinion that it is fool ardy to pull this project today rather than give them that time. He noted also that they have a commitment from Cincinnati Mortgage to do the conditional processing on this project. Mrs. Kolata stated that she did not think it w s appropriate to discuss the other prof ct. Mr. Conard noted that both projects were pro sed well before they should have been in order to grandfather the tax law and the City signed off on them then. Mrs. Kolata responded that Mr. Conard may have felt that it was not ready to go, but the bid was from Mill Race Partnership, who put into a Contract cert in dates that they would perform by and those dates have not been adhered to, the second contract has not even been MOM South Bend Rescheduled lopment Commission ar Meeting - April 15, 1988 6. NEW BUSIT}ESS (Cont.) g. uonz_�nuea... signed. The Commission did not intend for this to drag out three years. Mr. Cona d then asked why the City signed the bond issue for three years. Ms. Schwartz asked to clarify that. That issue was dealt with in 1985. She rernanbered Mr. Conard asking for a three year period to do the deal. The Co ssion specifically rejected the three year request at that point and agreed on a much shorter time schedule with an early construction start date. The three years was a bond timetable that was entered into with the Economic Deve opment Commission and had nothing to do with the Redevelopment Commission which has control over the land itself. Neither body can commit for the other. Mr. Conard stated that they have worked very hard on this and would like some consideration, whether it be 30 days or whatever to come back with the results of what they have done. Mr. ones asked to comment on the quality Of the project as now proposed. He submLtted that the quality is equal to or exceeds the other proposal. First of all it is 18 stories, not 17. What was pro sed as unit size versus the quoted square footage wouldn't work. That is the reason for the additional floor. Second, the parking garage is better than surface parking. Third, the penthouse area includes a health club for the residents with an outdoor pool, a weight room sauna, etc. He also noted that it would not have been possible to use the same plans for a structure here as had been built in Philadelphia. Every site requ res its own specifications. Mrs. Kolata asked Mr. Jones to describe the enities to be included in the apartments. Mr. Jones explained that the -20- South Bend Fjedevelopment Commission Rescheduled Peqular Meeting - April 15, 1988 6. NEW BUSINESS (Cont-) g. uonrglnuea... apartments themselves are not substantially different than those originally proposed. Each apartment will have a balcony, its own kitchen, washers and dryers. Mrs. Kolata asked if each apartment would have a washer and dryer. Mr. Jones said each floor would have some washers and dryers. Mr. Nimtz asked if there would be one or more washers and dryers per floor. Mr. Jones responded tha the plans said there would be one of eac per floor, but that the floor plans sho two sets. Ms. Schwartz summarized the three areas of concern raised in the default letter frorr the Commission in regard to the overall project. One was the timing, one was in regard to the nature of the developer and his qualifications, and one was in regard to the nature and quality of the project itself and the control of the land to make the parking structure Mr. onard responded that they had tried to answer those questions. They think they have a project that can now move Upon a motion by Ms. Auburn, seconded by Mr. Piasecki and unanimously carried, the Conmission terminated the contract with Mill Race Partnership for parcels E3 -3 and 3 -4. Upon a motion by Ms. Auburn, seconded by Mr. Piasecki and unanimously carried, the Commission rescinded the award of E9 -11, E3-3A and E3 -4A to Mill Race Apartments. 7. PROGRESS REPORTS were no progress reports. -21- COMMISSION TERMINATED THE CONTRACT WITH MILL RACE PARTNERSHIP FOR PARCELS E3 -3 AND E3 -4 COMMISSION RESCINDED THE AWARD OF PARCELS E3 -3A AND E3 -4A AND E9 -11 TO MILL RACE APARTMENTS �Y.IYIG �I�IG 1. • ' : � ' � G South Bend Fedevelopment Commission Rescheduled Regular Meeting - April 15, 1988 8. NEXT COYMISSION MEETING The Regular Meeting of the Commission scheduled for April 22, 1988 was rescheduled to April 29, 1988 at 10:00 a.m. 91 There being no further business to come before the Conuission, Ms. Auburn made a motion that the meeting be adjourned. Mr. Piasecki seconded the motion and the meeting was adjourn at 11:40 a.m. Ann E. Ko -22- NEXT COMMISSION MEETING ACJOURNMENT �Zjf/ , Act ve Director