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HomeMy WebLinkAboutRM 12-09-88December 9, 10:00 a.m. Presiding C 1. 2. 0 Bureau News Others: Mr. 1988 SOUTH BEND REDEVELOPMM COMMISSION Mr. F. Jay Nimtz President 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Present: Mr. F. Jay Nimtz, President Ms. Paula N. Auburn, Vice President Mr. Roman J. Piasecki, Secretary Mr. Sandy Combs, Assistant Secretary Mr. Michael Doncho Mrs. Carolyn Pfotenhauer :lent Staff: Mrs. Ann Kolata, Deputy Executive Director Mrs. Cheryl Phipps, Office Manager Mrs. Hedy Robinson, Economic Development Specialist Mr. Rick Pitts, Economic Development Specialist Housing Staff: Mr. Ted Leverman • Mr. James Wensits, South Bend Tribune Mr. Thom Howell, U -93 Mr. Carter Wolf, Center City Associates Mr. David Behr, Holladay Corporation Mr. Charles Clark, Holladay Corporation Mr. William Elliott, Valley Realty Mr. Ken Hebard, Genesis Architects & Engineers Mr. James Cronk announced that the Executive Session held prior to the meeting would be following adjournment of the Regular Meeting. Upon a motion made by Ms. Auburn, seconded by Mr. Combs and unanimously carried, the minutes of the Regular Meeting of Friday, November 18, 1988, were approved. Burke Technologies, Inc. BusinesslSystems, Inc. -1- COMMISSION APPROVED THE M119- ES OF THE REGUTAR MEETING OF FRIDAY, NOVEMBER. 18, 1988 $ 303.00 180.00 South Bend Redevelopment Commission Regular Meeting - December 9, 1988 3. APPROWL OF CLAIMS (Cont.) City an d State First Source Bank Auto Lease General Fund Gene's Camera Store General Fund - Postage Ann Kol to Petty C ash David RDos South Band Drafting Corporation for Enterprise Development Neighbo ood Development Corporation Wa on Street Press Bath As iates Federal Express Indiana Bell Communications Indiana Bell Telephone South Binding Supply Forbes, Inc. Total Afmin 1988 Nickle & Piasecki Dept of Public Works Center City Associates Clean-N--Green Peoples Inc. Total T I.F. 1988 Flags International Indiana & Michigan Power Osco DrLg Shilts Craves & Associates Total VI.F. 1986 Indiana & Michigan Power General Fund All Pbase Electric Dept. of Public Works LaPorte Construction OPM 15.00 463.42 390.96 9.`91 143.83 8.95 25.80 55.50 118.80 25.00 595.00 25.00 50.00 28.00 296.68 170.69 245.75 45.00 $ 3,196.29 $ 265.89 1,325.54 600.00 2,467.50 180.00 $ 4,838.93 $ 58.50 75.03 37.73 100.00 $ 271.26 $ 5.55 1,033.54 473.53 9,773.01 126,297.61 South Bend Redevelopment Commission Regular Meeting - December 9, 1988 3. APPROVAL OF CLAIMS (Cont.) Motor Vehicle Highway Fund 1,060.65 Sinton Supply Company 1,272.00 Total T.I.F. 1985 $ 139,915.89 Grand T tal $ 148,222.37 4. Upon amotion made by Mr. Combs, seconded by Mr. Piasecki and unanimously carried, the Coitnmiss'on formally approved the claims Submitted November 23 and December 5, 1988 and ordn ed checks dated December 1 and 9, 1988 to be released. Mrs. Ko ata read a note from Jeanne Derbeck the Commission for the resolution and cake honoring her at her retirement. a. Comtmication from Jon R. Hunt. Nov 28, 1988 Mr. F. Jay Nimtz Attorney 511 W. Colfax South Bend, IN 46601 Dear F. Jay: As a discussed on November 18th, I am publicly disclosing that my brother, Mr. Doug Hunt, recently joined The Holladay Co ration. While Doug does not work on any Holladay Corporation projects associated with the South Bend Redevelopment Commission, we both wanted to acknowledge that Doug is now employed by the Holladay Corporation Please feel free to handle the public disclosure of this notification in any mannar that you think is appropriate. Sinca our meetings are always covered by the 'a, I suggest that it be read into the ublic record at a public meeting of -3- COMMISSION A`` -• I I' 7 D NOVEMBER D ray- 5, 1988 ORDERED KICKIKS, DATED DECEMBER 1 AND 11 MCI 1- II' 9, 1988 TO BE RE=E3! COMMUNICATION FROM JON R. HUNT South Bend Pedevelopyient Commission Regular Meoting - December 9, 1988 4. CONJMUNIO. ONS (Cont.) 5. a. conrcinuea... a. Redevelopment Commission. Should you any questions or require additional rmation please call me. Jonj R. Hunt Exebutive Director Mrs Kolata explained that the department had been contacted by several developers interested in one or more parcels in the Eas Bank area. They were all asked to suhnit proposals for the parcels they were interested in by November 17, 1988. Mrs Kolata noted that some of the available parcels in the East Bank area have not yet been offered for public bid and therefore, can not be awarded at thi time. However, the Commission can a today the property which has been pre riously offered for bid. The pro can only indicate their int xest in the other properties and that the intend to bid on them when they are pub icly bid. proposals were received. Mrs. :a summarized each one. Dol hin Design and Development, and H.L. Chadwell, Ltd. submitted a proposal for parcels E3 -3 & E3 -4, E9 -11, E4 -1, E9 -14 and E9 -15, and E9 -8a&b. The proposal was for a 20,000 - 27,000 sft office building and a 20 unit apartment building. The pro ect cost is $2,800,000. It would be an cntirely speculative development. The apaitments would rent for $500 - $650 per month. The project would require -4- South Bend Redevelopment commission Regular Meoting - December 9, 1988 5. OLD BUSINESS (Cont.) a. Continued... aPj roximately 85 parking spaces which wot ld be made available to the public dLu ing non business hours. Dolphin De-sign's bid is $169,375 for parcels E3 -3 E3 -4, E9 -11, and E9a&b (the minimum of ing price for these parcels) and has 'cated that they would pay the minimum off ing price for the other parcels when the are appraised and offered. The pro'eat would begin construction on March 20, 1989 and be completed by August 198. They are interested in whatever tax abatement they are eligible for and wan us to do some public works improvements, on Niles Avenue. Craitive Development co. /Financial Senrices, Inc. submitted a proposal and bid for parcels E3 -3 and E3 -4. The pro is for a 20 unit, entirely speculative, apartment complex. Rents would range from $675 - $795 per month. Each unit would have one garage space. Parlm,ig would probably not be available to Ihe public because it is a residential pro ect. The total project cost would be $924,000. Creative Development's bid for parcel E3 -3 &4 is $29,550, the minimum residential offering price. Construction would start April 30, 1989 and be leted September 10, 1990. They in to apply for tax abatement and prcbibly are interested in having us make imprwements to Niles Avenue. Valley Development Co. (John Freidline) submiLtted a proposal for sixteen condmiinium units for parcel E9 -11, indicating that he would be bidding on parcels E9 -14 and E9 -15 and E9 -8a&b when they were offered in order to build additional units. The condominiums would sell for approximately $65,000 each. Each unit would have a private garage. Thtal project cost would be $600,000 plus land costs. This is a speculative -5- South Bend Redevelopment Cormnission Regular Meoting - December 9, 1988 5. OLD "DgE,SS (Cont.) a. Continued... cte elopment - no condominium units have been sold. Parking would not be available to the public because it is a residential project. The developer offered $20,000 for the parcel. Construction would begin on the project on , Vril 17, 1989 and be completed by OctJber 17, 1989. They would ask for tax aba t to pass on the purchasers of the condominium units. They also would 1' 1B public works improvements on Niles and Washington and paving of a north-south alley. . TheLr site plan shows more than just the 16 'ts for parcel E9 -11. The units fa onto a courtyard. There is a garage on the east side of the property and a co le of gates on the west side making it totally secured area. Mr. Elliott, representing Valley DevEdopmnt, noted that they have Contacted the owners of adjacent property to negotiate the purchase in order to dev lop the entire block into a 36 unit ccoolex of condominiums. Mr. Hebard of Genesis Architects and Engineers described the site plan they had prepared. Both the condominium concept and type of design are unique to the downtown area. There would be an interior, secured courtyard, maximizing greenspace for the development and continuing the urban feel of the East Race Waterway. Ms. Auburn asked Mr. Elliot about a project that Valley Development intended to Wild on property near the in ion of Niles and Corby which has never been built. Mr. Elliott responded that a later market analysis showed that apartments in the price range planned for that property would hinder another QM South Bend Redevelopment Commission Regular M ting - December 9, 1988 5. OLD "INESS (cont.) a. conti.nuea... lominium project they are planning in Niles /Corby area. Also, the work the is doing on Niles Avenue and the ects Tom Brademas has completed in area have changed the nature of the and affected Valley's plans for the erty. They are still working on e projects. Mr. Wolf asked how large the condominiums would be and what the exterior materials would be. Mr. Hebard responded that there would be two sizes, 800 sft and 106 sft. The exterior would be a b tone affect with limestone corners. Nil /Washington Associates (Holladay Co ration) submitted a proposal for parcels E3 -3 and E3 -4, E9 -11, E4 -1, E9 -14 & E9-15, and E9 -8a&b. The proposal is for a two phase project: a three story, 40,000 sft corporate headquarters for a loc Ll business and eight apartment units. The apartments would rent for app oximately $500 per month. The Project cost would be $3,450,000 for the off ce and $280,000 for the apartments, to ling $3,730,000. Their offer was con ingent upon a decision by their off ce tenant within 10 -14 days. They have since received a commitment from that: tenant to locate in the building. The office building would require at 1 t 150 parking spaces most of which would be available to the public during non business hours. Holladay's bid is $190,000 for all of the parcels, estimating the value of those not yet appiaised. They have offered $84,300 for parcels E3 -3 and E3 -4 and $46,775 for parcel E9 -11. They also indicated they would bid the minim m offering price when the parcels are put up for public bid. The developer has a tenant committed to the entire office building. Construction Willl begin in January 1989 for the office -7- South Bend Redevelopment Commission Regular M ting - December 9, 1988 5. OLD EWDgESS (Cont.) a. conti.nuea... ding and be completed by October Construction of the apartments begin the sunner of 1990 and be ,leted by fall 1990. They will apply tax abatement and want public works ovements on Niles Avenue. Mr. Behr described the proposed office building. It was designed by The Troyer Group who has designed several other buildings in the downtown. The exterior would be masonry and glass. He noted that the committed tenant had looked at sevoral sites in the South Bend/Mishawaka Mr. Behr mentioned a possible trade of 1 which would inprove both the City's access to the East Race Waterway and visitor parking for the office building. Mrs Kolata noted that there could be no neg tiations on properties 4, 5, or 6 because they have not yet been put up for public bid. Ms. Auburn asked if the tenant would locate elsewhere in the downtown if the site was not awarded to Holladay. Mr. responded that they probably would not locate in downtown South Bend. Mr. Wolf asked what the total square foo age would be for the apartment pro ect. Mrs. Kolata responded that the ent a project would be 3,700 sft. Each of e four units would then be app ximately 900 sft. Mr. Nimtz asked for the staff reccmnendation. Mrs. Kolata responded that the staff recommends the proposal front the Holladay Corporation be accEpted, based primarily on the size of the project, the total project cost, and the committed major corporate tenant. She noted that the staff was very 11:19 South Bend Regular Me 5. OLD BU a. Co RE Mm 10 elopment Commission - December 9, 1988 (Cont.) ested in some of the other projects and wished there was more land to them happen. Ms. Auburn complimented Genesis Ardiitects on the design of the a ts. Ms. Auburn indicated that she did not the Commission could deny a $ 3.7 million project with a secured corporate ten Mt. Upon a motion by Ms. Auburn, seconded by Mr. Combs and unanimously carried, the camnission accepted the proposal from Nil /Washington Associates for parcels E3- , E3 -4 and E9 -11 subject to the drafting of a Contract for Sale of Land for mixed use. . (Transwestern Building) Mrs. Kolata reported that advertisements were run in the Indianapolis Star, the Chicago Tribune, Crains Chicago Business Magazine, Midwest Real Estate News and the South Bend Tribune. Five bid packets were either picked up at the office or sent out. However, no bids were received by the 10:00 December 2, 1988 deadline. Mr. Nimtz received the report and noted that the Commission would not take any action at this time. COMMISSION ACCEPTED THE PROPOSAL FROM NILES/WASHINGTON ASSOCIATES FOR PARCELS E3 -3, E3 -4 AND E9 -11 SUB7EGT TO THE DRAFTING OF A CONTRACT FOR SALE OF LAND FOR MIXED USE NO BIDS WRE RECEIVED FOR REUSE OF THE TRANSWESTERN BUILDING South Bend edevelopment Comission Regular Mee ing - December 9, 1988 6. NEW BUSM S (Cont.) b. Continued... Ms. Robinson read the staff report on the application. The petitioner, John Fre dline, proposes to completely renovate a portion of the old Penny's building at 113 E. Wayne Street. Renovation will include the installation of interior stair tower, new HVAC throughout, new 1,000 - 1,200 amp electrical service, and new water and gas corpections. Seventy -five percent of the net leasable space on the first floor will be retail space. The project will craite fifteen new permanent full time jobs, within the first year with an est' mated annual payroll of $200,000 and wil maintain forty existing permanent ful time and five existing permanent time jobs with an annual estimated pa oll of $480,000. The total project cos is estimated to be $350,000. The property is properly zoned for the proposed use and is located in an area designated as a Tax Abatement Impact Area by the South Bend Common Council. It is also located in a tax incremental f' cina allocation area. IhE project qualifies for ten years of tw abatement. Without abatement, taxes arE estimated to be $1,611,420 over the ter year period. With abatement, the tw es are estimated to be $797,653. Th efore, the total amount to be abated is timated to be $813,767. Ms. Auburn asked if Mr. Freidline had secured a tenant for the building. Mrs. Ko ata responded that he has been n otiating with several possible ants, but has not lined up a firm co�mitmnt. Ms. Auburn asked how the project qualified for ten years of abatement. Mrs. Kolata responded that the project is -10- South Bend Pedevelcpment Commission Regular Meoting - December 9, 1988 6. NEW U.INFSS (Cont.) b. Continued... C. in the downtown, it has been approved by the Design Review Committee, the building has been vacant for more than one year, and 75% of the first floor will be used for retail. Ms. Auburn asked whether the abatement would be cut back to six years if the final project does not include 75% retail space on the first floor. Mrs. Kolata responded that Mr. Freidli.ne has subnitted a letter indicating that he wouLd request only six years of abatement if he was not able to provide 75% of first floor retail space. Upon a motion by Ms. Auburn, seconded by COMMISSION ADOPTED RESOLUTION NO. Mr. Piasecki and unanimously carried, the 864 APPROVING AN APPLSCATION FOR CormrLission adopted Resolution No. 864 REAL PROPERTY TAX DEDUCTION FOR approving an application for real PROPERTY LOCATED AT 113 E. WAYNE pro tax deduction for property ST. loc4ted at 113 E. Wayne St. Mrs Kolata explained that the Subordination Agreement is for a Hdrwstead property previously awarded to Geozge and Eva Hunt. She noted, again, that. George Hunt is an employee of the Department of Economic Development, but his work does not include any aspect of the Homesteading program. TheY had previously been approved for a Section 312 Loan, but the contractor has since been removed from the Bureau of Housing's contractor list. The contract with the next lowest bidder required an additional $2,750 loan. Teachers Credit Uniori has approved the loan conditional upon the subordination of the Section 312 -11- South Bend Redevelopment Commission Regular Meoting - December 9, 1988 6. NEW gAINESS (Cont.) c. continued... d. e. Ms -1 Auburn declared a conflict of interest with Teachers credit Union. a motion by Mr. Piasecki, seconded COMMISSION APPROVED THE by . Combs and carried, the commission SUBORDINATION AGREEMENT WITH app ed the Subordination Agreement with TEACHERS CREDIT UNION FOR T ers Credit Union for property PROPERTY LOCATED AT 116 E. DAYTON loc ited at 116 E. Dayton. Ms. Auburn Mrs Kolata noted that the Homesteading property located at 1504 W. Ford Street was previously awarded to Mr. Brad Marks. He has been offered a job in Indianapolis and has relinquished the homestead. The Bureau of Housing contacted all prior applicants who had indicated an interest in this property and Mr. Leonard was the only one still inUxested in it. Ms. Auburn asked if Ms. Elizabeth Leortard, Director of Financial and PrcgraM Management, is a relative of Jef ery Leonard. Mrs. Kolata responded that she is not. Upon a motion by Mr. Doncho, seconded by Mr. Combs and unanimously carried, the Cormission approved the Homestead Agreement with Mr. Jeffery Leonard for pro located at 1504 W. Fond Street. -12- COMMISSION APPROVED THE HOMESTEAD AGREEMENT WITH MR. JEFFERY LEONARD •• PROPERTY LOCATED 1504 W. FORD STREET South Bend Regular Me 6. NEW BU e. elopment Commission - December 9, 1988 (Cont.) Northern Oak Homes Northern Oak 2351E. Fox Homes 908 NHS 916 NHS 920 NHS M South Bend Ave. NHS South Bend Ave. South Bend Ave. 9221South Bend Ave. lul M NHS $19,535 $39,879 $25,453 $24,952 $25,797 Upon a motion by Ms. Auburn, seconded by Mr. Piasecki and unanimously carried, the commission approved the proposal and loan in connection with the Rental Rehab Loan PrOqfrm for property located at 235 E. Mr. Leverman noted that the proposals for the properties located at 920 and 922 South Bend Avenue have been revised downward a total of $5,000. Ms. Auburn asked if NHS has the staff expertise to manage these rental Properties. Mr. Leverman responded that they currently manage other rental properties and do have the expertise. Ms. Auburn noted that the Board of Directors letter from NHS mentions a First Interstate Bank commitment letter, but e commitment letter included with the documents is from 1st Source Bank. Ms. pfotenhauer indicated that she would workl with them to get the documents Mr. Piasecki declared a conflict of interest due to his membership on the Boarl of the Housing Development Co ration. -13- $ 8,500 (Public) $12,166 (Private) $16,000 (Public) $25,230 (Private) $ 8,500 (Public) $18,272 (Private) $ 8,000 (Public) $17,356 (Private) $ 8,500 (Public) $18,229 (Private) COMMISSION APPROVED TBE PROPOSAL AND IRAN IN CONNECTION wITH THE REN'T'AL REHAB IRAN FROGRAM FOR PROPERTY LOCATED AT 235 E. FOX South Bend Redevelopment Commission Regular Meeting - December 9, 1988 6. NEW BU INESS (font.) e. c omi.nuea.. . f. Upoa a motion by Mr. Donoho, seconded by Mr. Combs and carried, the Commission approved the proposals and loans in co ection with the Rental Rehab Loan for properties located at 908, 916 920 and 922 South Bend Ave., subject to the correction of any errors in the commitment letter as previously notBd. Mr. Piasecki abstained from the Dev 1 intent Area. (Parcel E1 -1) Mrs Kolata explained that Can Am is preparing to close on the financing for the purchase of parcel E1 -1 on December 22. Because of that they are trying to tie up some loose ends and be ready to begin construction immediately. They are asking for: 1) permission to allow the contractor to set up construction trailers, telephone lines and temporary pow (x on the site prior to the December 30t1i closing on the land; 2) a variance from the Commission's requirement that all buildings be at least 25 feet from the East Bank Walkway, and; 3) mocd.fications to the legal description of the pedestrian easement along the riv6rbank. Upon a motion by Mr. Piasecki, seconded by Vt. Donoho and unanimously carried, the Commission authorized staff to record the easement concerning the walkway for public access to parcel E1 -1; approved the site plan including the location of the rners of two buildings within the 25 t setback; and gave permission for the mntractor to place a construction trai er upon the site and install ten"rary telephone lines and temporary -14- COMMISSION APPROVED THE PROPOSALS AND LOANS IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTIES LOCATED AT 908, 916, 920 AND 922 SOUTH BEND AVE. COMMISSION AUTHORIZED THE STAFF TO RECORD THE EASEMENT CONCERNING THE WA11MY FOR PUBLIC ACCESS TO PARCEL E1 -1; APPROVED THE SITE PLAN INCLUDING THE LOCATION OF THE CORNERS OF TWO BUILDINGS WITHIN THE 25 FOOT SETBACK; AND GAVE PERMISSION FOR THE CONTRACTOR TO PLACE A CONSTRUCTION TRAILER UPON THE SITE AND INSTALL TEMPORARY POWER South Bend Redevelopment Commission Regular MeEting - December 9, 1988 7. S REPORTS 8. a Mrs. Kolata reminded the Commission and audience of the ceremony at the Studebaker Museum at 3:30 p.m. that afternoon ccamiemcrating the 25th anniversary of the closing of the Studebaker Corporation. The ne4 Regular Meeting of the Commission is SChedUlod for December 23, 1988 at 10:00 a.m. There b ing no further business to come before the Commission, Ms. Auburn made a motion that the meeting be adjourned. Mr. Combs seconded the motion and the meeting was adjourn at 11:30 a.m. NEXT COMNMSSION MEETING I • - 10 1 �t - ent Ann E. Kolata, Deputy Executive Director -15- . L C im- Amerik;4m kcally C'ttrpormion December 8, 1,988 Ms. Ann Kolata beputy Executive Director ThP City of South Bend Department of Economic DevelopmenL 1200 County -City Building Sout Bend, Indiana 46601 I iii �lar'yucnr .Isar (hI2) ,l2 1a44 VIA TELECOPY Dear Ms. Kdlata: As I have indicated, Can- American South Bend Limitod Partnership is planning to close on The Pointe at St. Joseph ajjarLme!nt proj-ct on December 22. We do not, however, anticipate full dish r.semcnt until December 30, 1988. We aze recjuv-sting that the ontractor be allowed, in Lhe irnterim, to set up his cons ruction trailer, telephone lines and Lempozary power. The 7ontractor will not begin work until proceed; from the sale of Uic bands have been distributed. Sincerely, Lynn Carlson Weber O _ _ - t Can- American licaltti C vrpuratimi DeC ?1(4,5 r 7, 1988 Ms. Arin rolata DepUtN7 Executive nirector The City of South rend I)CpdL j.lilenL of Economic Development 1200 aunty -City Building South ?end, Indiana 46601 Dear Ms. Kolata: 1117 M.t,tI tit' ttc A"CIntc tiunr 4k1 VIA TELECOPY As yol may be aware, Can- American South Bend Limited Partnership is pr paring to close on our 2 02 -unit residential project, Tho Point ::t at St. L7oseph, on the 22nd of December. In light of thi:., 1 wan eel to formally k�i i.r,y Lo your attention a matter wc: have diseu �sed in the^ past. in the request for proposal Lo purchase the El-1 parcel, the ttedev_1opment Commission Sent out bid specifications and design consi erations. Our project weets these design criteria with tht. follo,ing evneptions: m ilding E encroaches the 25 -foot setbaCk from the Fnc,ewEay }-,y approximately six feet; and Building D encroaches the 25-f.00L setback from the F.accway hY approximately twelve feet. mr. John Middleton of Law:_an- Fisher is sending YOu a s'tc '_a.yo"t under separate cover that will c;1at ify Lhc. encroachment.. Since there are design requirement:_ set up by the Pe.(3eve10JAT1e11L Commission rather than the city Code requirements, I would recjucst that the Redevelopment Commission waive the setback rE_tyu? Lt.- .mt.nL. sine, ely, L� Lynn Carlson Wober LCW : 4 4 1 4: