Loading...
HomeMy WebLinkAboutRM 10-28-88October 28 1988 10:00 a.m. Presiding office 1. ROLL CALL 2. 3. Mr. F. Jay Nimtz President Present: Members Absent: Legal Counsel: Bureau News M Others: Staff : Housing Staff: ANN 00' -r - i� II 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. Michael Donoho Mr. Sandy Combs, Assistant Secretary Ms. Carolyn Pfotenhauer Mrs. Ann Kolata, Deputy Executive Director Mrs. Cheryl Phipps, Office Manager Mr. Ted Leverman Ms. Jeanne Derbeck, South Bend Tribune Mr. Thom Howell, U -93 Mr. James Cronk Mr. Ernest Szarwark, Mr. Bobby Newbill, WWCRP Upon a motion made by Mr. Piasecki, seconded by Ms. Auburn and unanimously carried, the minutes of the Regular Meeting of Friday, October 14, 1988, were approved. Upon a notion made by Ms. Auburn, seconded by Mr. Do ho and unanimously carried, the Commission formally approved the claims submitted October 10 and October 17, 1988 and Ordered checks dated October 17 and October 21, 198P to be released. Burke Tedmologies, Inc. Federal Express Gary Mester Photography -1- $ 70.00 45.25 591.00 South Bend Redevelopment Commission Regular Meeting - October 28, 1988 3. APPROWZ OF CLAIMS (Cont.) General. Fund Indiana Bell Communications Makiel ki, Inc. Ribbons Ink, Inc. S.C.L. Comuunications Gene's Camera Shop S.C.L. Communications John March Total Idmin 1988 4. 5. 9F Indiana& Michigan Power Company John MErch Total T.I.F. 1985 Landscape Design Co., Inc. City of South Bend - Street Dept. Total U.I.F. 1986 GRAND TbTAL Upon a Tiotion made by Ms. Auburn, seconded by Mr. DonJho and unanimously carried, the Commission formally approved the claims submittRd October 10 and October 17, 1988 and ordere4 checks dated October 14 and October 21, 198 to be released. There wire no communications. There w*s no old business. Mrs. Ko ata requested permission to add two items to the agenda: under 6.b., an additional Subordination Agreement for properbr located at 2426 Poland Street; and -2- 413.18 305.68 63.00 166.32 333.10 8.93 568.75 42.04 $ 2,607.25 $ 17.40 4.00 $ 21.40 $ 1,250.00 8,427.55 $ 9,677.55 $ 12,306.20 COMMISSION APPROVED THE CIA KS SUBMITTED OCTOBER 10 AND OCTOBER 17, 1988 AND ORDERED CHECKS DATED OCTOBER 14 AND OCTOBER 21, 1988 TO BE RELEASED THERE WAS NO OLD BUSINESS South Bend Regular Meg 1W elopment Commission - October 28, 1988 (Cont. ) item 6.d., a letter of support for the City's applicz tion for Federal Enterprise Zone desigmtion. There were no objections and permission was granted. a. LecIn Townsend Townsend Const. 1818 Fassnacht hern Oak Homes Northern Oak Homes E. Fox . Kolata noted for the record that ri Townsend is an employee of the sing Development Corporation. This is a conflict of interest since the sing Development Corporation is not t of the Department of Economic Kolata noted also that the financing es are reversed on the agenda for ern Oak Homes. The publicly ced portion is $7,500 and the tely financed portion is $7,600. Mr. Piasecki asked if the Bureau of Hou ring is familiar with the work of Northern Oak Homes. Mr. Ieverman responded that they are an Elkhart y which has purchased several homes in Guth Bend. He has driven past some of eir projects and they look sat'sfactorv. Ups a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the proposals and loals listed above in connection with the Ren Rehab Program. -3- $19,363 $ 8,500 (public) $12,000 (private) $14,160 $ 7,500 (public) $ 7,600 (private) COMMISSION APPROVED PROPOSALS LOANS CONNECITON W= THE RENTAL REHAB PROGRAM FOR PROPERTIES AT 1818 FASSNACRT AND 305 E. FOX STREET South Bend Regular MeE elopment Commission - October 28, 1988 6. NEW BU,5= (Cont.) a. Continuea... Ms. Auburn asked Mr. Leverman to monitor the Northern Oak Homes rehab and report back to the Commission on the quality of the work ?. Mr. Piasecki asked if there was any requirement that the recipients of Rental Rehab funds continue as owners for a ceitain period of time. Mrs. Kolata indicated that there is no requirement as such, but the 10% per year forgiveness on the loan is a strong incentive to retain ership for at least ten years. b. Ccmmission approval requested for sulordination acrreement with Valle American Bank on property at 929 W. WaE h on. MrE . Kolata explained that the owner of the property at 929 W. Washington intends to obtain a construction loan from Valley Anterican Bank. The bank requires that their mortgage be in first position, 'ch would move the Rental Rehab loan to second position. This is standard p e and policy. second subordination agreement, an tion to the agenda, is for property ted at 2426 Poland Street. A steader wishes to obtain a loan from ,est Commerce Bank to pay off a home ovement loan and to add a garage to home. Upon a motion by Ms. Auburn, seconded by COMMISSION APPROVED SUBORDINATIi Mr. Piasecki and unanimously carried, the AGREII EWS FOR PROPERTY LOCATED Ccmmission approved the subordination AT 929 W. WASBINGTON AND 2426 acgeements for property located at 929 W. POLAND STREET W on Street and 2426 Poland. ZC South Bend I Redevelopment Comiission Regular Meoting - October 28, 1988 6. NEW BUSINESS (Cont.) c. Continued... Kolata read the staff report recarding the requested tax abatement. Mo sberg and Company, a conmiercial printer, proposes to construct a 25,000 s- f. expansion to their existing building as additional office and manufacturing space. The additional space is needed to provide room for growth to meet the needs of the company's customers. The project will create ten to fifteen new, permanent full time jobs within the first year representing a new annual payroll of $230,000. The company presently employs 83 people with an annual payroll in excess of $2,751,940. The total project including equipment, is estimated at $6,500,000. property is properly zoned for the posed use. It is not located in an designated as a tax abatement impact but qualifies for tax abatement use of its industrial classification ,riling to the S.I.C. codes. It is ted in a tax incremental financing nation area. The company is eligible five years of personal property tax .ement and three years of real ertv tax abatement. The personal property project cost is $5,300,000. Without abatement, the personal property taxes are estimated to be $1563,997 over the five year period. Witi abatement, the taxes are estimated to $117,902. Therefore, the personal p taxes to be abated are estimated at 446,095. The real property project cos is $1,500,000. The real property tax s are estimated to be $241,673 wi out abatement, $81,377 with aba t. Therefore, the real property tax to be abated over the three year per'�d are estimated at $160,000. -5- South Bend Redevelopment Commission Regular Meoting - October 28, 1988 6. NEW "INESS (Cont.) 7. c. c:onrinuea... Mr. Szarwark, representing Mossberg and Company, explained the company's planned ion. The business is growing and is in need of additional space. They will increase their existing space by 40% to 50 %. They will be purchasing two new pr ses, which will help them meet the i exsting demand of both quality and Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Ccxmission adopted Resolution No. 862 apr.roving an application for real and personal property tax deduction for pr located at 301 E. Sample Street. Kolata explained that the City of h Bend is preparing an application Federal Enterprise Zone designation. Redevelopment Commission has been d to write a letter of support for designation based on the cooperation it would provide within the lebaker Corridor and its intention to ue the revitalization of a portion of Enterprise Zone. Mr. Nimtz asked if there was any obj ion to sending such a letter. Th a was no objection and a letter will be t. Mrs. Ko ata noted that South Bend Heritage Foundat'on plans to construct two new homes in Mo Park, near where they constructed a new hamet last year. They are manufactured homes a id have passed Design Review. They will be I installed on the lots in early Nov . They are two bedroom homes with an • r� • •�•- �� NiO-HI'TION AO. APPROVING AN APP1-J:=0N FOR SAMPLE REAL AND PERSONAL PROPERTY TAX - DEDUCTION FOR PROPERTY LOCATED AT 301 E. . E COMMISSION AUTHORIZED LETTER OF SUPPORT FOR FEDERAL ENTERPRISE ZONE DESIGNATION APPLICATION "•Ly. -.4 a. ;* a South Bend Regular MeE a elopment Commission - October 28, 1988 :.tea :�•. -�• d room on the second level, an one car garage, and will be built on Mr. Cr nk asked why they were only building a one s 1 garage. Mrs. Kolata responded that the int ent was to keep the cost as low as Mr. Nimtz recognized Mr. Newbill who had a stateMent, to read regarding the West Washington-Chapin Revitalization Group's choice of Alternative Plan II as the area's Comrehensive Plan. Mr. Ne0bill's statement: "Good morning, and thank you for allowing me to spezk. My name is Bobby Newbill. I represent four categories of people: myself, my motter and grandparents, the minority ccmmercial property owners in the 1200 and 1300 b Eck of West Washington, and, fourth, many o the residents residing within the Near W t Side. In reference to myself, I'm the proud owner of real estate at 1306 W. Washington which is empty now, but it eagerly awaits its rebirth in activity. I'm her to put on notice to the Redevel pment Commission that we, the businesses and neighborhood residents vote NO to demolition of the 1200 and 1300 blocks of W. Washington. It is one of our opinions that we are being denied due process based on a questionable vote decision of the WWCRP task form and a handful of general members to demolish and purchase our real estate. We vote for Alternative Plan I of the WWCRP which a Llows us the dignity to be a part of a strong ear West Side and a growing, thrivinj, energetic South Bend. We unde�tand that the area of subject is now a Redev lorment Area. -7- South Bend I Redevelopment Commission Regular M ting - October 28, 1988 We bel eve that the Redevelopment Commission will do all in its authority to assist the 1200-1300 West Washington Street minority businesses, and many residents fit significantly in the overall scheme of a tour w rthv South Bend." Mr. Narbill went on to say that the group he represents presented the WWCRP with a petition at its last meeting, signed by the minority commercial property owners from the 1200-1-300 block of West Washington and signed by residents within that area. They would like the cooperation of the Redevelopment Commission to help them put together a plan that will benefit the entire West W on- Chapin area. Mrs. Yblata noted that the staff is aware of the WWCRP meeting last week and their decision, but the WWCRP has not come to the Commission for discussion or action on their plan. The Commission should expect the WWCRP to ccmo forward within the next few weeks. Ms. Aub4m asked Mr. Newbill if these issues have belen discussed within the wwc Rp Mr. Newbill responded that these issues have been discussed at the WWCRP Meetings. The problem is that, initially, there was an understanding that there would be no major demolition in the area. However, shortly after South Bend common council member Eugenia Braboy lost her Council seat, there began to be discussion about the demolition of large portions of the area. The affected businesr,es have tried to get the WWCRP to work wi them to improve their businesses, but th feel they are being railroaded out of the major decisions of the WWCRP. They feel thair input is not being taken into consid tion. The affected businesses want to seethe area improve and they realize that that wi 1 require change. But they don't feel th it they are responsible for the crime and dru fs in the area and shouldn't be kicked out jus because those conditions exist. I• -. a:.� a: Ms. 2 that the F work. Mr. n Redevelopment Commission sting - October 28, 1988 (Cont.) asked if the problem, then, is are differences of opinion within as a result of the consultant's responded that that is correct. Mrs. K lata asked if presentations had been made to the group regarding Alternative Plan I and laternative Plan II. Mr. Newbill resPorKled that there had been a presentation of eadi plan and that there was still disagroement over which was best. Mr. Piasecki asked how many people support Mr. Ne ill's position. Mr. Newbill responced that he had signatures and addresses of 53 supporters. Mr. Piasecki asked I ow many of those were businesses. Mr. Newbill indicated that 15 were business owners. He stated that there are 15 minority businecs ses in the area and 3 or 4 non minority businesses plus the Sandock Building which helongs to South Bend Heritage. Alternative Plan II proposes to save the property belonging to the non minority owners but demolish the property belonging to the minority business owners. Mr. Newbill indicated that now that the area is a Redevel pment Area, he and the other minority businesr, owners were hoping to have access to loan to improve their buildings. He has awnBd the old St. Vincent DePaul building for years and hopes to open a theat c�nm�nity center where individuals and groaps could perform. He has been unable to rehao it until now because of a lack of funds. Mr. Piasecki asked if the St. Vincent DePaul buildinj is structurally adaptable for that use. . Newbill responded that it is a structurally sound, single story building, well su ted to his proposed use. He has been performtM routine maintenance on the buildir* since he purchased it. -9- South Bendl Redevelopment Commission Regular Me ting - October 28, 1988 Mrs. K lata noted that one of the purposes of the consultant's study was to determine business and comexcial potential in the area and they conducted a market analysis /survey of the commercial space. Mr. Ne jbill noted that the consultants did not co itact the property owners about their plans or their property. Mr. Newbill feels that if the consultants knew what the planned uses w xe, there would not have been a Plan II pro sing demolition. Mr. Piasecki asked Mr. Newbill who else feels the swe way about your building. Mr. Newbill responded that there were five or six of the task force who believe that his idE a is a good one and did not vote for demolition. Mr. Piasecki indicated that the conmlission would he receptive if there was a consultant's opinion that there was potential for this proposed use in the West Washington area. Mr. Newbill stated that he hoped the Redevelopment Commission would be willing to consider other options than that which would be proposed by the WWCRP. Mrs. Ko ata explained that when the cc miss'on designated the West Washing ton-Chapin area as a Redevelopment Area, tie Commission promised to wait for the WWCRP t develop a comprehensive plan for the area be ore moving ahead with any action. The WW is nearly ready to come forward with their recommendations. Mr. N' z asked if he understood correctly that Mr. Newbill had made this presentation to the task force and that the vote had gone against him. Mr. Newbill explained that he had at ed the meeting along with many other biLsiness owners and residents. However, he left the meeting early, disenchanted because of their determination -10- South Bend I Redevelopment Commission Regular Meoting - October 28, 1988 to te# everything down. The vote was a show of har4s with no actual count taken. Mr. Do oho asked if Mr. Newbill and his supporters could be notified when the WWCRP was plzTTdM to present their recommendations to the Commission so that they could be present. at the same meeting. Mrs. Kolata responqed that she would see that they were Mr. Do oho asked if the vote that the committee took was binding on the committee. Mrs. Yolata. responded that she did not know if the vote was binding. The desire of the Comnis ion was for the neighborhood to come to a consensus before bringing their reco=ndations to the Commission. The purpose of the study was to pull together the necessary information and make r TSeentions that the group could agree on. oted that there does not seem to be thament yet. Mr. Ne ill explained that there are 19 of the committee. The night that the vote was taken, only five representatives of the con munity at large attended. This indicated to the committee that there was a lack of interest. Mr. Newbill stated that many are elderly or work evenings and others were just disenchanted with the group and saw no point in attending. Ms. Auburn outlined the Commission's dilemma. The Commission pledged to wait for the nei rhood to develop a plan on which they coald agree. If the Commission would then avezride that plan, the committee would questio the Commission's actions. Back in the 170 the community could not agree on a plan, so nothing was done. It looks like the same sAuation is developing. Mr. Ne ill stated that there is a difference of opinion between the owners of the historical homes, who do not want any coamierc al development in the area, and the -11- South Bend I Redevelopment Commission Regular Meoting - October 28, 1988 9P 9H (Cont.) rest of the area's residents and business owners who wish to allow commercial activAy. He noted that business owners had asked for help in controlling the loitering, crime and drug peddling near their stores. Increased police activity has helped, but there are still problems with customers being harrassed. The business owners also want to see the area improve and became a showpiece for a future tour of Department programs. But th y need the cooperation of the group, not demholition. Mr.Ni#tz thanked Mr. Newbill for coming and making Ihis statement. Mr. Ne ill indicated that he is attempting to set up another meeting with the WWCRP to discuss the recommendations. Mr. Crcnk reiterated Mr. Newbill's accusation that tl7e consultant did not contact any property owners from the 1200 -1300 block of West Washington St. The consultant claimed that tkere was no demand for additional commercial activity because of 107,000 square feet of vacant space, but turned around and recommended building 36,000 square feet of additional new commercial space. Mrs. Kolata noted that the Regular Meetings in Nov fall on Veteran's Day and the Friday after Thanksgiving. She suggested reschediling to one November meeting on November 18. Mr. Nimtz asked if there was any objbaction to rescheduling the November meetings to November 18. There was no objection and the next meeting of the Commission will be November 18, 1988 at 10:00 a.m. There being no further business to come before the Commission, Mr. Donoho made a -12- NEXT CESSION SING South Bend I Redevelopment Comidssion Regular Meoting - October 28, 1988 9. AMU-J9= (Cont.) motion that the meeting be adjourned. Mr. Pi seconded the motion and the meeting was ad ourned at 10:55 a.m. -13- — ze"; Ann Kolata, D6p6ty Executive Director