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HomeMy WebLinkAboutRM 07-08-88July 8, 19! 10:00 a.m. Presiding SOUTH BEND REDEVELOPMENT COMMISSION REGULAR SCHEDULED MEETING Mr. F. Jay Nimtz President 1. ROLL C Members Present: Members Absent: Legal C unsel: Redevel iDment Staff: Bureau News Mei Others: Mr. Nimtz held prior following 2. 3. Housing Staff: 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Mr. F. Jay Nimtz, President Mr. Roman J. Piasecki, Secretary Mr. Sandy Combs, Assistant Secretary Mr. Michael Donoho Ms. Paula N. Auburn Ms. Carolyn Pfotenhauer Mrs. Ann E. Kolata, Deputy Executive Director Mrs. Cheryl Phipps, Office Manager Ms. Hedy Robinson Mr. Ted Leverman Ms. Mary Richmond Ms. Jeanne Derbeck, South Bend Tribune Mr. Dick Maginot, WSBT -TV Mr. Carter Wolf, Center City Associates Mr. Charles Clark, Holladay Corporation Mr. Carl Benedix, BFDA Mr. Stan Blenke, Schafer Gear Works inounced that the Executive Session :o the meeting would be continued ljournment of the Regular Meeting. OF MINUTES Upon a inotion made by Mr. Piasecki, seconded by Mr. Corrbs and unanimously carried, the minutes of the Rescheduled Regular Meeting of Friday, June 17, 1988 were approved. OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE RESCHEDULED REGULAR MEETING OF FRIDAY, JUNE 17, 1988 Upon a motion made by Mr. Combs, seconded by COMMISSION APPROVED THE CLAIMS Mr. Piasecki and unanimously carried, the SUBMITTED JUNE 20, JUNE 27, AND Comniss on formally approved the claims JULY 1, 1988 AND ORDERED CHECKS submitted June 20, June 27 and July 1, 1988 DATED JUNE 24, JULY 1, JULY 8, 1988 and ordered checks dated June 24, July 1, and TO BE RELEASED July 8 fo be released. so South Bend Redevelopment Commission Regular Me ting - July 8, 1988 3. APPROV7L OF CLAIMS (Cont.) ADMIN 1988 Billie, Inc. $ 85.00 Burke riechnologies 59.20 Community Information 5.00 Federal Express 57.25 Foundation News 29.50 General Fund 215.47 Harvar University Press 5.00 Jon R. Hunt 20.00 Jossey ss Inc. Publication 103.60 Steve Yoriarity 620.00 P.D.H. 112.00 SCL Corrmunications 15.85 Schilli gs Sales Co. 10.11 Warren, Gorham, & Lamont 1.00 Van Nos rand Reinhold 33.78 Federal Express 61.00 MacMillan Publishing 22.95 Ann Kol to 7.50 National Coalition for the Homeless 5.00 National Main St. Center for historic Preservation 44.25 National Neighborhood Coalition 25.00 P.D.H. Office Products 5.28 South BDnd Tribune 26.33 University of Missouri -Rolla 12.00 Zuchell.i Hunter & Assoc. 669.56 Executi e Program 31.82 National Trust for Historic Preservation 155.00 Executi e Program 35.00 Warren, Gorham & Lamont, Inc. 47.25 To al Admin 1988 T.I.F. 985 Cole & Ken Nickle South United Walker sociates Pak & Ship g & Associates Co. of St. Joseph County Piasecki d Tribune rcel Service T.I.F 1985 -2- $ 2,520.70 $ 1,639.03 19.74 5,050.00 2,500.00 199.50 27.30 8.50 5,895.27 $ 15,339.34 South Bend Redevelopment Commission Regular Me ting - July 8, 1988 3. APPROVIL OF CLAIMS (Cont.) T.I.F. 1986 Tri County News Ralph Iauver 4. COMMUN There 5. OLD BU There 6. NEW BU a. Ad, an T.I.F. 1986 TOTAL no communications. no old business. of Resolution No. 850 ation for Dersonal pr Inc. at $ 23.40 3,800.00 $ 3,823.40 $ 21,493.33 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS S. Main Street. tax Ms. Robinson read the staff report. The petitioner proposes to acquire a gear hob ing machine to be used in the direct production of gears. The project is expE�cted to create two new jobs. The co y presently employs seven full -time and one part -time employee with an annual payroll of $1,150,000. The new equipment is expected to cost $250,000. Schafer Gear Works qualifies for five years of tax abatement. Taxes to be abated over that five year period will be $22,305.00. Taxes to be paid over that period will be $5,896.00. Mrs Kolata noted that this request comes bef re the Commission due to Schafer Gear Works location in the Studebaker Corridor Allocation Area. Stan Blenke, Vice President of Finance for Schafer Gear Works, explained that the hobbing machine they intend to pur hase will help them be more combetetive in the market. It is a -3- South Bend Redevelopment Commission Regular Me ting - July 8, 1988 6. NEW BUSINESS (Cont.) a. uontlnuea... the art machine, used to cut Upc,i a motion by Mr. Piasecki, seconded by Ar. Combs and unanimously carried, the Comnission adopted Resolution No. 850 approving an application for personal pro rty tax abatement consideration for Sch fer Gear Works, Inc. b. g2tission action on proposals received for Parcel E2 -15 in the South Bend Area. Mrs. Kolata noted that two proposals have been received for this parcel, the former Crescent Electric site in the East Bank area. Mrs. Kolata described the two proposals and stated that a rep esentative from each proposer was present to answer questions the Comnission might have. Kayak Run Condominiums, a partnership of Carl Benedix, W. A. Elliott, and Vernon Heins, bid $150,000 for the land to be paid in $30,000 annual payments or $6,250 per condominium sold. The have not submitted a performance guarantee and have asked that that be waived because of the cost of removing some steel, wood, and concrete foundation from a portion of the site and have estimated that cost at $25 000. The project would consist of 24 two story condominiums, to be constructed in three phases of eight units each. Each unit would cost approximately $79,000 to $105,000. Materials would be brick and drivet. Total project cost is estimated at $2,500,000. Construction of the first eight units would start within 60 90 days of Commission approval with co letion of the first eight units 180 - 210 days from the start of construction. The have a buyer for one unit and three or four prospects for others. -4- COMMISSION ADOPTED RESOLUTION NO. 850 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX ABATEMENT CONSIDERATION FOR SCHAFER GEAR WORKS, INC. South Bend Redevelopment Commission Regular Me ting - July 8, 1988 6. NEW BUSINESS (Cont.) b. Corhtinued... Niles Colfax Associates, a partnership of JoIn Phair, Wallace Holladay and Charles Clark, has bid $112,000 for the property and has submitted a performance guarantee of $11,250. They propose to build a 30,000 square foot two -story office building. There would be 32 parking spaces below the first story and 84 surface spaces on the site. Construction would start the end of 1988 or early 1989 and be complete by the end of 1989. The as imated project cost is $3,000,000. :)e signs are not complete, but materials aao ld be brick with tinted windows. Mrs. {ol to noted that the partnership has a str ng potential tenant for a 15,000 re foot lease, but the lease is not �i ed and the tenant cannot be ide tified at this time. Mr. Nimtz asked if he understood correctly that the Commission would be paid as the Kayak Run units are sold. Mr. Benedix responded that that was Mrs Kolata asked Mr. Benedix about the Comftission requiring a letter of credit for the full purchase amount to be reduced by the sales price of each unit as it is sold. This had been discussed with Mr. Benedix previously. Mr. Benedix indicated that he would be discussing this with the partnership on July 12 when the partnership met regarding several of its current projects. Mr. Combs asked about plans for the building of the subsequent units. Mr. Benedix responded that the entire project would be complete within two years. Mr. Nimtz asked if he was correct in calculating that it could be five years before the Commission is paid off. Mr. Benedix responded that he is proposing a 5 y . land contract but that they did not exp�ct that it would take more than two -5- South Bend Redevelopment Commission Regular Me ting - July 8, 1988 6. NEW BUSINESS (Cont.) b. Continued... . Kolata asked what assurance the nission would have that the second and rd phases would be completed. Mr. =_dix indicated that Mr. Heins was not Tied about the success of the project intends to complete the entire iect. Mr. Nimtz recognized Mr. Clark for an lanation of his proposal. Mr. Nimtz as ed about the below grade parking. He wo dered how much would be seen from the street. Mr. Clark responded that the first floor would be approximately one foct above grade, so parking would be almost entirely obscured. He compared the appearance to that of One Michiana Square's parking. Mr. Piasecki asked Mr. Clark to review the start and completion dates for the project. Mr. Clark responded that construction could start as early as mid October and be complete in approximately one year. Upon a motion by Mr. Donoho, seconded by COMMISSION ACCEPTED THE PROPOSAL Mr. Combs and unanimously carried, the OF NILES COLFAX ASSOCIATES FOR Co ssion accepted the proposal of Niles PARCEL E2 -15 Colfax Associates for Parcel E2 -15 and autnorized its officers to execute the nec ssary documents. c. Ado tion of Resolution No. 851, a res lution of the South Bend Red velopment Commission finding and determining that payments of property tax pro eeds from the allocation fund to the res ctive taxing units shall not be aut orized. Mrs Kolata noted that this is a technical resolution. In 1987 the Indiana legislature passed a law that by July 15 of each year the Redevelopment Comnission must notify the auditor if there is any excess tax increment revenue -6- South Bend Redevelopment Commission Regular Me ting - July 8, 1988 6. NEW C. INESS (Cont.) to be passed along to other taxing units that they can use in their setting of tax rates for the following year. Our financial advisor, Springsted Inc. has advised us that it would endanger our bo d if we released any of the tax increment. We have pledged all tax increment to our bond holders. They have sent us a letter to that effect. The law states that you may not release any tax in rement to another taxing jurisdiction if it would endanger a bond. Upon a motion by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the Conmission approved Resolution No. 851 finding and determining that payments of prcperty tax proceeds from the allocation fund to the respective taxing units shall no be authorized. ssion determination of no excess rty tax proceeds in the Rum Vill trial Park (South Bend Allocatio No. Area (South Corridor No. 6) and the West ngton- Chapin Development Area (South Allocation Area No. 7). Mrs. Kolata noted that these are the Co ssion's other tax allocation areas. There are not bonds outstanding in any of then. However, there is a state loan in the Rum Village Industrial Park being repaid out of the tax increment and some planning activities in the other areas which are eligible uses of the increment. Therefore, there is no excess property tax increment in those areas. Upon a motion by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the Comnission determined that there were no excess property tax proceeds in the Rum Village Industrial Park (South Bend All cation Area No. 4), the Studebaker -7- COMMISSION APPROVED RESOLUTION NO. 851 FINDING AND DETERMINING THAT PAYMENTS OF PROPERTY TAX PROCEEDS FROM THE ALLOCATION FUND TO THE RESPECTIVE TAXING UNITS SHALL NOT BE AUTHORIZED COMMISSION DETERMINED THAT THERE WERE NO EXCESS PROPERTY TAX PROCEEDS IN THE RUM VILLAGE INDUS- TRIAL PARK, THE STUDEBAKER CORRIDOR AND THE WEST WASHINGTON- CHAPIN DEVELOPMENT AREA South Bend Regular MeE 6. NEW BUc d. Cor elopment Commission - July 8, 1988 (Cont.) Co ridor Development Area (South Bend Al ocation Area No. 6), and the West Wa hington- Chapin Development Area (South Be d Allocation Area No. 7). e. Commission approval requested for Center City Associates sub -lease of property fo Circus Flora. Mr E. Kolata noted that the Commission has received a letter from Carter Wolf, Di ector of Center City Associates, requesting permission to sub -lease the Shcppers Park Free lot and the Baers lot to Circus Flora. The event is being co sponsored by Center City Associates and the City of South Bend. The event will tie up the two lots from July 21 to July 25. She noted that it is a coition of the lease the Commission has wi Center City Associates that the Co ssion must approve any sub -lease the enter into. Mr. Wolf appologized for making the press announcement regarding Circus Flora prior to Commission approval of the sub- lease. That was necessary because of the limited ti until the event. He thanked the May r and Carolyn Pfotenhauer for their eff its in overcoming obstacles and cle ring the way for the Circus. Mr. Piasecki asked Mr. Wolf how the downtown merchants feel about the Circus coming to town. Mr. Wolf responded that the streets will remain open and only one of the lots is currently used as a par ing lot. The merchants are excited abo t the prospect because it is such a top-notch affair. It is a performing art3 group with a circus theme. They are nationally recognized, they receive money fran the National Endowment for the Arts, the have been written up in the New York Ti s, been featured on Tom Brokaws show. He hoted that it is a different kind of -8- South Bend Regular Me 6. NEW BU e. Co elopment Commission - July 8, 1988 (Cont.) group than those which come to the Morris Civic Auditorium, but is of the same high quality. There will be one Big Top and one ring. There will be six performances, including one For Kids Sake marline. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved the sub -lease of property between Center City Associates and Circus Flora. f. Commission approval requested for a loan and contract in connection with the Rental Rehabilitation Program in acc rdance with the recommendation from the Bureau of Housing. Contractor m Housing Development HDC Co ration 1813 W. Linden Mr. Piasecki declared a conflict of interest and did not participate in the discussion or vote. The Rental Rehab loans are 10 -year interest free federal loans. The program re ires private financing to match the federal financing. The house has two ren al units. Upon a motion by Mr. Doncho, seconded by Mr. Combs and carried, the Commission app oved the proposal and loan for the Housing Development Corporation in connection with the Rental Rehab Program. Mr. Piasecki abstained. ComLAssion approval requested for loans in connection with the Section 312 Loan Program in accordance with the recdmiendation from the Bureau of Hou ina. COMMISSION APPROVED THE SUBLEASE OF PROPERTY BETWEEN CENTER CITY ASSOCIATES AND CIRCUS FLORA 1 Loan Amount $10,000 $5,265.00 (public) $5,265.00 (private) COMMISSION APPROVED THE PROPOSAL AND LOAN FOR THE HOUSING DEVELOP- MENT CORPORATION IN CONNECTION WITH THE RENTAL REHAB PROGRAM South Bend Regular Meg 6. NEW BU g. Ca. 7. elopment Commission - July 8, 1988 (Cont.) Mar a G. Carmona 514 N. Cushing St. Eil en M. Kuplic 740 Blaine Avenue Waljer Peaks, Jr. 102 W. Colfax Avenue Mrs. Kolata noted that the loan for the property at 514 N. Cushing has been tabled. The loan for 740 Blaine is for a new roof, work on the foundation, new doors and interior repairs to bring the homD up to code. The 1029 Colfax proDerty will be completely rehabilitated wita new siding, foundation, windows and doo cs. Mr. Piasecki commented that often these loans improve one property, but the neighborhood is in such poor condition that the home is not worth the investment. He asked if Code Enforcement is brought in to help improve the surrounding neighborhood. Mrs. Kolata responded that the staff works closely with the neighborhood associations. She indicated that the staff could also make som recommendations to Code Enforcement reg rding the surrounding houses. Upon a motion by Mr. Piasecki, seconded by fir. Donoho and unanimously carried, the Commission approved the Section 312 Lowis for 740 Blaine Avenue and 1029 W. Colfax Avenue. Mr. Ni z remarked how nice the Ethnic Festival was this year. Mr. Wolf commended Mikki Dobski for the good job she did coordinating that this year. -10- Loan Amount $23,700.00 $10,150.00 $29,400.00 COMMISSION APPROVED THE SECTION 312 LOANS FOR 740 BLAINE AVE. AND 1029 W. COLFAX AVE. South Bend Redevelopment Commission Regular Me ting - July 8, 1988 8. NEXT CCMMISSION MEETING The ne Regular Meeting of the Commission is NEXT COMMISSION MEETING scheduled for July 22, 1988 at 10:00 a.m. 9. ADJO There heing no further business to come before ADJOURIZIEN'P the Commission, Mr. Combs made a motion that the me ting be adjourned. Mr. Donoho seconded the motion and the meeting was adjourned at 10:45 a.m. , Yresent [inn Y. xotata, lleputy Executive -11-