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HomeMy WebLinkAboutRM 08-12-8810:00 a.m. Presiding 1. ROLL CAL Members Members Legal Coi Redevelop Bureau o: 2. SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 12, 1988 Mr. F. Jay Nimtz President •esent: .sent: sel : lent Staff: Housing Staff: News Media: Mr. NiImannounced that the Execut Session held prior to the eting will continue followthe meeting. a. b. 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 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. Jenny Pitts- Manier Mrs. Ann Kolata, Deputy Executive Director Mrs. Cheryl Phipps, Office Manager Mr. K.C. Pocius Ms. Hedy Robinson Ms. Mary Richmond Jeanne Derbeck, South Bend Tribune Mr. Carter Wolf, Center City Associates Mr. Steve Luecke, South Bend Common Council Mr. John Voorde, South Bend Common Council Mr. Mark Krcmaric, Barnes & Thornburg Upon a motion made by Ms. Auburn, seconded by Mr. Piasecki and unanimously carried, the minutes of the Regular Meeting of Friday, July 22, 1.988, were approved. -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF JULY 22, 1988 South Bend Regular Me elopment Comission - August 12, 1988 2. APPROVAL OF MINUTES (Cont.) Upon a motion made by Mr. Piasecki, COMMISSION APPROVED THE MINUTES seconded by Ms. Auburn and unanimously OF THE SPECIAL MEETING OF carried, the minutes of the Special JULY 29, 1988 Meeting of July 29, 1988, were appr ed. 3. APPROVAL OF CLAIMS Upon a nption made by Mr. Combs, seconded by Ms. Auburn and unanimously carried, the Comissi n formally approved the claims submitted July 25, August 1, and August 8, 1988 and ordered checks dated August 1, August 5 and August 12 to be released. Chamber Gene's 1 NCL Pub PDH Off South B Federal Gary Me Indiana Indiana John Na Star Tee Executi Chamber PDH Off. Berreth General St. TH. Ken ' Commerce sera Shop Art Shop rations Products I Drafting press Center r Photography 'five Systems Art Shop L - Petty Cash irary Services, Inc. Program Commerce Art Shop :Supplies .1 Co. nd (Postage) 1988 Title Co. News & Associates, Inc. -2- COMMISSION APPROVED THE CLAIMS SUEMITPED JULY 25, AUGUST 1 AND AUGUST 8, 1988 AND ORDERED CHECKS DATED AUGUST 1, AUGUST 5, AND AUGUST 12, 1988 TO BE RELEASED 45.00 21.69 4.85 2.00 72.00 27.00 50.75 26.95 129.00 164.75 72.90 36.35 91.81 89.25 19.34 135.00 31.37 266.06 45.32 183.65 $ 1,515.04 $ 45.00 132.41 3,400.00 South Bend Pedevelopment Commission Regular Meeting - August 12, 1988 3. APPROVAL OF CLAIMS (Cont.) Clyde E. Williams & Assoc. Downtown Pack & Ship Federal ress I&M Power Co. St. Jose Dh Title Co. United P ircel Service Total T.I.F. 1986 Nickle & Piasecki I&M Power Co. Total T.I.F. 1985 TOTAL 2V There were no communications. 5. OLD BUS12rESS There was no old business. 3 a. Ms. Robinson read the staff report on the application. The project involves rebuilding presses, stamping machines, addirg conveyors, forklift trucks and new machines to increase the output. The petitioner also proposes to upgrade the condition of the existing facility, including extensive roof repair, replacement of windows, exterior painting, siding and -3- 2,398.48 3.39 76.25 24.97 500.00 8.50 $ 6,589.00 $ 281.25 21.88 $ 303.13 C 52 AM 17 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Regular Me. -elopment Commission - August 12, 1988 insulation. Plant elevators will also be ranovated, and truck docks will be add el. The project will maintain 400 jobs with an annual payroll of $9,000,000. No jobs will be created as a result of this project. The pro is properly zoned for the propDsed use. The property is located in a tax abatement impact area and is also located in a tax incremental finaacing area. The petitioner qualifies for a three year abatement on tie real property. Estimated taxes to bB abated over a three year period will be $229,815. Estimated taxes to be paid over the three year period are $116,640. The total project cost on the machinery is estimated at $3,400,000. Taxes to be abated in the five year personal property abatement are estimated to be $303,343. The personal property taxes to be paid over that five year period are estinated at $80,173. The total project, cost of machinery and real propoxty improvements is $5,550,000. Mr. luecke noted that Allied Products had notified the Common Council that they would be asking the Council for six years of real property tax abatement instead of the three which they qualify for. Mrs. Kolata explained that according to the ordinance, the project qualifies for three years of abatement by being an industrial manufacturing business. If they were creating a certain level of new obs, they would qualify for six or t years. She noted that if the Council approves the additional abatement, the request would come back to t1le Commission for their approval of tl#e longer abatement. Upon a motion by Mr. Piasecki, COMMISSION ADOPTED RESOIIJTION secoixied by Mr. Combs and unanimously NO. 854 APPROVING AN APPLICATION carried, the Commission adopted FOR REAL AND PERSONAL PROPERTY Reso ution No. 854 approving an TAX DEDUCTION CONSIDERATION FOR application for real and personal PROPERTY IOCATED AT 601 W. prop4rty tax deduction consideration BROADWAY (ALUED PRODUCTS) -4- South Bend Regular Meg 6. NEW BU a. Coy 10 c. elopment Commission - August 12, 1988 (font.) for xbronerty located at 601 W. Mrs. Kolata noted that this is tax incrwent money the Commission has re' ursed to the City for expenditures made in 1987 in the StudEbaker Corridor. It has come into Comm 'ty Development and has been reprcgranimed back for Studebaker Corridor use. This contract will all it to be used for survey, title, appraisal work and other related planning activities in the Studebaker Corridor. The contract runs from AuguEt 1, 1988 to December 31, 1988. Upon a motion by Ms. Auburn, seconded by . Combs and unanimously carried, the ommission approved CD Contract CD88 610 in the amount of $10,233.00 for Ic tudebaker Corridor planning cos . Bertha & James Wilder 1111 W. Napier St. Mrs. Kolata noted that in addition to the Section 312 Loan of $22,700, the prof is also receiving a $6,000 West Washinqton Grant. Mr. Piasecki asked what condition the prope#ies surrounding 1111 W. Napier mia COMMISSION APPROVED COMMUNITY DEVELOPMENT CONIRACI', CD88 -610, IN THE AMOUNT OF $10,233.00 FOR STUDEBAKER CORRIDOR PLANNING COSTS $22,700.00 South Bend Regular Me 6. NEW BU c. Co elopment Commission - August 12, 1988 (cont.) are in. Mr. Nimtz responded that he was familiar with the neighborhood and that it is in fairly good condition. Ms. Richmond responded that the Bureau of Housing is in the process of rehaoilitatuig or has completed three homo on Napier St. Upon a notion by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the Commission approved the Section 312 Loan for property located at 1:41 W. Napier. Mrs. Kolata noted that prior to making Purdiase Offers, it is necessary to have survey and title work done and to have the property appraised. The staff has identified property in the studonaker Corridor fringe area which it lieves it would like to acquire and that list was given to three sure yors and two title companies, requ ting a quote to do the work. For the survey work, Pierce and Ass iates quoted a price of $3,500, cow ete within four weeks. Valley Eng' eering quoted a price of $6,400, to complete within eight weeks, and H Fisher quoted a price of $16, 00, to be competed on a schedule deve oped by the Department. Mrs. Kolata noted that Mr. Pocius had veri ied with Pierce and Associates that they could indeed do the work for $3,5)0 and they stand by their quote. Mrs. Kolata also noted that Pierce and Ass iates has done satisfactory work for #s in the past. CESSION APPROVED THE SECTION 312 IRAN FOR PROPER'T'Y LOCATED AT 1111 W. NAPIER South Bend Regular Me 6. NEW BU d. Co rte! elopment Commission - August 12, 1988 (Cont. ) Mrs. Kolata also noted that there is some disagreement as to the number of pieces of property that need to be sure ved/have title work done. Upon a motion by Ms. Auburn, seconded by . Combs and unanimously carried, the Commission awarded the contract for s=ey work in the Studebaker Corr dor Development Area to Pierce and Associates. Mrs. Kolata noted that Abstract and Title submitted a bid for $12,000 for a noccimm of 200 policies. St. Joseph Title bid $100 each for 150 parcels plus $1,000 for a railroad right-of-way search for the line that runs between Indiana and Tutt St. on the east side of Lafayette Blvd. for a total of $16,000. Mrs. Kolata also noted that the title ccmgmy selected to do the title searches is also the company we commit to for the title policy when the propcatty is purchased and resold. Mrs. Kolata noted that we have worked with both companies and are satisfied with their work. She also noted that the work could be divided and awarded to both companies. go were rn expressed a preference for the work. mtz asked if there were any ions to this item being tabled the staff asked for revised als from both companies. There o objections and item 6.e. was -7- , 6161 W3 folk) • YU-11 4110P 40 1 C k i• Y •• •• 1 :• l0I- • -- ••• W11516 - IV •• • • -� • COMMISSION TABLED THE SELECTION OF A COMPANY TO DO TITLE WORK IN THE STUDEBAEER CORRIDOR DEVELOPMENT AREA South Bend Ri Regular Meet. 6. NEW BUSE f . Conmi: hire Corr. va Mrs. Tom Lett, to so recce bond Corr: Dann on tl Rede done work woub Jaio whirl cost elopment Commission - August 12, 1988 (Cont.) Kolata noted that she had asked litman of Baker & Daniels for a x outlining their qualifications xve as bond counsel. He has tted that letter and the staff mends hiring Baker & Daniels as counsel for the Studebaker dor Development Area. Baker and is has done very good work for us Le three T.I.F. bonds and the two elopment Bonds which they have for us and we have a very good ng relationship with them. They � use a local counsel, Parker & mto, for a lot of the paperwork, L would reduce the Co7mnission's Upon a motion by Mr. Piasecki, CONI4ISSION AUTHORIZED HIRING seconded by Mr. Combs and unanimously BAKER & DANIELS AS BOND COUNSEL carried, the Commission authorized the FOR THE STUDEBAKER CORRIDOR hiripg of Baker & Daniels as bond DEVEMPM W AREA counsel for the Studebaker Corridor Deve cement Area. Mrs. Kolata explained that the ssion had purchased the church near the stadium from the Greater Chric.tian Tabernacle congregation. Sometime after we had purchased the buil , but before they moved to their new location, they entered into an acrreement with Zion Hill Missionary Bapt st Church for the rental of space in the church. Now that the Greater Chric.tian Tabernacle has moved out, Zion Hill Missionary Baptist would like to continue renting the church for one year for the same rent being South Bend Regular Meg 6. NEW BU. g. Col 7. elopment Commission - August 12, 1988 (Cont.) paid by Greater Christian Tabernacle, $300 per month. They will be responsible for all repairs to the building and carry insurance on the builcUng. They will not be entitled to any relocation benefits because they were not there when we purchased the buildincr. Upon a motion by Ms. Auburn, seconded by . Piasecki and carried, the Ccmmission approved the lease with Zion Hill Missionary Baptist Church for Patroel C15 -3 in the South Bend Cen Development Area. Mr. Combs abstained from the discussion and the vote Mr. Nimt asked Ms. Auburn to present to Mrs. Kol to an award which was bestowed upon her by the Indiana Planning Association on August 11. She was named the Professional Planner for Indiana in recognition of her work with T.I.F. She has led the way, working with the statewide coalition of redevelopment officials, attorneys, and private sector developers, in ensuring that T.I.F. remains a. workable redevelopment financing tool. Ste has become the statewide authority on T.I.F. and advises other municinal officials when asked. Mr. Nimt2 asked Mr. Voorde if he had any conmients. Mr. Voorde expressed the Council's interest in and concerns regarding the Studebaker Corridor and the proposed bond issue. He indicated that while the Council is anxious that the Studebaker Corridor plans proceed, he is not sure that the Council is supportive of everything that is included in Phase I. He hopes that they have the opportunity to continue discussions with the adminis tion so that we do not work at cross p ses. W419 COWUSSION APPROVED THE LEASE WITH ZION BILL I • A :.• CHURCH •. PARCEL THE SOUTH • E YC M!y" V1140`fi a114W! 604) ",A � South Bend Regular Me. 7. 8. 9. elopment Commission - August 12, 1988 (Cont.) Mr. Nimtz indicated that he had heard no opposition to the project, but assured him that we would be willing to cooperate and listen to any suggestions. Mr. Nimtz asked Mr. Luecke if he wished to make any comments. Mr. Luecke expressed interest in the beginnings of the bond process. Mr. Krcmwic, who joined the meeting after the Alli Products tax abatement consideration, thanked the Commission for its approval and noted again that Allied would be petitioning the Council for six years of abatement based on the 400 jobs which watild be retained and the location of Allied Products in the Studebaker Corridor. Ms. Auburn asked if the Commission, staff and C n Council could meet to discuss the effects of tax abatement and whether we were meeting our goals with its use. Mrs. Kol to noted that the Council Human Resources & Economic Development Committee would be scheduling a meeting with the staff in early September to discuss tax abatement and suggested the Commissioners be invit6d to attend. The next Regular Meeting of the Commission NEXT CONMISSION MEETING is scheduled for August 26, 1988 at 10:00 a.m. There be' g no further business to come ADIIOURNMENT before a Commission, Mr. Piasecki made a motion tiat the meeting be adjourned. Mr. Combs s nded the motion and the meeting was adjo ed at 11:00 a.m. J Lzi ,�..._......� r. P L t Ann'E. Kolata, Deputy Executive Director -10-