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HomeMy WebLinkAboutRM 02-10-89February 1( 10:00 a.m. Presiding C 1. 2. 3. , 1989 Wcojul 1 Z4 2r A - 10120 . 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 Donoho News Me dia: Others: Mr. Ms. Carolyn Pfotenhauer Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Mr. Larry Koepfle, Economic Dev. Specialist Mr. Rick Pitts, Economic Development Specialist Ms. Hedy Robinson, Economic Dev. Specialist Ms. Amanda Hart, VMOR Mr. Thom Howell, U -93 Mr. David Rumbach, South Bend Tribune Mr. Carter Wolf, Center City Associates Mr. Calvin Murdock, Murdock & Sons Construction Company 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. Pi and unanimously carried, the minutes of the Regular Meeting of Friday, January 27, 1989, were approved. Ms. the Center ( Gary Me: Indiana declared a conflict of interest on and abstained from the vote. :ity Associates ,ter Photography Bell Communications -1- ICOMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, JANUARY 27, 1989 $ 365.00 526.08 296.68 South Bend edevelopment Commission Regular Meoting - February 10, 1989 3. APPROVAL OF CLAIMS (Cont.) 4. 5. 5V Commission formally approved the claims submitted January 31 and February 6, 1989, and orcered checks dated February 3 and FebrLmy 10, 1989 to be released. Ms. Auburn abstained from voting. There 'Were no communications. a. a. Kolata noted that at its January 27th meeting, the Commission voted to accept the proposal from Ken Herceg & Associates for design work on Washington St. between Niles Ave. and Hill St. Due to the number of Commissioners present at meeting, the Commission requested the approval be ratified at this inn. Ms.1 Auburn declared a conflict of infest and abstained from voting. ' @i THERE WERE NO COMMUNICATIONS Upon a motion by Mr. Donoho, seconded by COMMISSION RATIFIED THE PROPOSAL Mr. Combs and unanimously carried, the FROM KEN HERCEG AND ASSOCIATES, Commission ratified the proposal from Ken INC. FOR PROFESSIONAL SERVICES IN Herceg & Associates, Inc. for THE EAST BANK prcfessional services in the East Bank. Ms. Auburn abstained from the vote. . Kolata noted that the South Bend :ral Development Area contains three ject areas: Monroe Park, the East Bank the Central Business District. The -3- South Bend ] Regular Mee 3. elcpment CoYmnission - February 10, 1989 CLAIMS (Cont.) Indiana Bell Telephone MultiMate International N.C.U.E D. Shoppinj Center World South Baid Tribune St. Jo ph Title Corp. Trav re - Ask Mr. Foster U.S. Po5tal Service Warren, Gorham, & Lamont, Inc. Executi ve Program Downtow,i Research & Development Federal Express Global Cczputer Supplies Petty Cish - John March South Bmd Drafting United Parcel Service Nationa Development Council one Wy Indiana Michigan Power LaPorte Construction Co., Inc. St. Jo ph County Clerk Walsh & Kelly, Inc. Indiana Michigan Power Total TLI.F. 1988 Flags International Ken He=eg & Associates Sun God Pool Service & Supplies Total T1I.F. 1986 R.E. M loskey & Associates Jerome t. Michaels Total T1I.F. 1985 Cel". M l Upon a motion made by Mr. Combs, seconded by Mr. Pi ecki and unanimously carried, the -2- 188.43 12.00 575.00 44.00 173.94 100.00 178.00 60.00 104.70 14.16 36.00 53.00 164.10 94.11 24.30 12.50 400.00 $ 3,422.00 $ 137.99 256,318.38 110.00 229,740.93 5.55 $ 486,312.85 439.45 4,825.00 214.50 $ 5,478.95 $ 2,400.00 2,400.00 $ 4,800.00 $ 494,534.85 COMMISSION APPROVED THE CLAIMS SUEHITIEED JANUARY 31 AND FEBRUARY South Bend edevelcpment Commission Regular Mee ing - February 10, 1989 3. APPROVAL, OF CLAIM (Cont.) 4. 5. RE Commi.ss'on formally approved the claims submitt d January 31 and February 6, 1989, and ord xed checks dated February 3 and Feb 10, 1989 to be released. Ms. Auburn abstain voting. 'There wlxe no communications. a. a. Mrs. Kolata noted that at its January 27 meeting, the Commission voted to accept the proposal from Ken Herceg & Associates for design work on Washington St. between Niles Ave. and Hill St. Due to the number of Commissioners present at that meeting, the Commission requested that the approval be ratified at this meetincf. Ms.1 Auburn declared a conflict of infest and abstained from voting. 6, 1989 AND ORDERED CHECYS DAIM FEBRUARY 3 AND FEBRUARY 10, 1989 TO BE RELEASED 'WERE WERE NO COMMUNICATIONS Upon a motion by Mr. Donoho, seconded by OO MISSION RATIFIED THE PROPOSAL Mr. Combs and unanimously carried, the FROM KEN HERCEG AND ASSOCIATES, Ccumission ratified the proposal from Ken INC. FOR PROFESSIONAL SERVICES IN Hexceg & Associates, Inc. for THE EAST BANK pr fessional services in the East Bank. Ms. Auburn abstained from the vote. . Kolata noted that the South Bend tral Development Area contains three ject areas: Monroe Park, the East Bank the Central Business District. The -3- South Bend Redevelopment Commission Regular Meoting - February 10, 1989 6. NEW BWINESS (Cont.) b. Coritinued... C. blopment Plan for the South Bend :cal Development Area specifies the erties to be acquired by the fission. We are amending the Plan to ude an additional parcel for iisition: Block E -3, Parcel 1 in the Bank. The owner is East Race erties. It is a warehouse next to Wharf restaurant. This resolution is the process of amending the :lopment Plan to add this to the .isition list. If approved today, it be considered at the February 21, Area Plan Commission meeting and by City Council on February 27th. It return to the Commission for a is Hearing on March 24th. Upon a motion by Mr. Donoho, seconded by Mr. Combs and unanimously carried, the 'Commission approved Resolution No. 867 red lacing the South Bend Central Development Area to be blighted and the Development Plan. 6.b. was deferred until later in the Mrs Kolata noted that the staff has been discussing some additional acquisition in the residential area of Monroe Park in order to strengthen that residential area. She displayed a map showing the s being considered. The end use of the acquired property would be housing, primarily multi - family. Before beginning the process of adding these to the acqtLisition list, we would like to do the sur�ey work and, in item 6.d., the title -4- CCHMISSION APPROVED - • • i • REDECLARING THE SOUTH BEND CENTRAL DEVELOPMENT AREA T# BE BLIGHM AND AMENDING THE DEVELOPMENT PLAN South Bend edevelopment Commission Regular M ing - February 10, 1989 6. NEW BUSjINESS (Cont.) c. continuea... Twc proposals were received for the suzvey work. Valley Engineering proposed to complete the phase one surveys for $2,750 and the phase two surveys for $950. Peirce and Associates proposed to do the phase one survey work for $4,620 and the phase two surveys for $1,320. Bassed on the prices, the staff reco7mnends accepting the proposal of Valley ineering for both phase one and phase tw Valley Engineering indicated that t could complete the work within six w , weather permitting. Mr.1 Nimtz declared a conflict of interest and Ms. Auburn assumed the chair. Kolata noted that a considerable nt of effort has been expended in the . and a lot of renovation has taken e. However, there is a substantial nt of vacant land and some problem erties. Much of the property posed for acquisition is vacant land. :ral are structures that are either in condition or vacant. one is fire .ed. The intent is to consolidate the Land make it available for Mr. Piasecki asked who was going to develop the multi- family housing when the properties are acquired. Mrs. Kolata responded that there are two interested developers, but we are not in a position to negotiate with either one until the property is acquired and put up for public bid. Upon a motion by Mr. Combs, seconded by Mr. Piasecki and unanimously carried, the Commission accepted the proposal from Valley Engineering for survey work in the Monroe Park portion of the South Bend Cen Development Area. Mr. Nimtz abs fined from voting. -5- • i r • � •ICI' :Ir 1 • •• •• . • r+ r al:l' r • South Bend I Redeveloment Commission Regular Meoting - February 10, 1989 32 e. f. (Cont. ) Kolata noted that there are two proposals to do the title work. Abstract Title Corporation proposes to do the title work for $100 per title commitment. St. Joseph Title has pr posed $125 per title commitment. Based on the price, the staff reconmiends accepting the proposal of Abstract and Title Corporation. Upon a motion by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the Commission accepted the proposal of Abstract and Title Corporation for title woxk in the Monroe Park portion of the So Bend Central Development Area. Mr. Ni abstained due to his conflict of item was continued until the next nca. Mrs Kolata noted that there was an error on the agenda. The actual amount of the conzact is $44,247.00. to is a one year contract for the unity Development Block Grant funds allocated for Monroe Park .opment. It will run from January 1, to December 31, 1989. Eligible cost Dories include public works, ,caping, cleanup, acquisition, ation, and clearance. We will be M� • • 1 ITEM 6.E. WAS CONTINUED UNTIL THE NEXT NESTING South Bend I Redevelopment Commission Regular ting - February 10, 1989 6. NEW EWINESS (Cont.) f. Continued... b. a portion of the money for the work, title work and appraisals in tion with the acquisition mentioned r. Upon a motion by Ms. Auburn, seconded by Mr. Combs and unanimously carried, the Commission approved the Community De elopment Contract in the amount of $44,247.00 for Monroe Park development. Ms. Robinson read the staff report on the tax abatement petition. The petitioner, Calvin Murdock, proposes to construct a building for office and waadhouse, use. His company, Murdock & Sons Construction Company, is primarily encaged in the design and construction of ccnmercial/industrial facilities. The prcject will create three new jobs with an expected annual payroll of $70,000 and will maintain twelve existing full-time jobs and twenty permanent part -time jobs wita an annual payroll of $450,000. The estimated project cost is $270,000. The property is properly zoned for the proposed use. The property is located in an area designated as a Tax Abatement ct Area by the South Bend Common Council and is also located in a Tax Incremental Financing Allocation Area. The petitioner's SIC Code is 1542 and does not meet the criteria for real pr tax abatement. Mrs Kolata noted that Mr. Murdock ntly operates a construction Bess on the corner of Broadway and 5D CESSION APPROVED THE COMMUNITY DEVELOPMENT CONTRACT IN THE AMOUNT OF $44,247.00 FOR MONROE PARK DEVELOPMENT South Bend Pedeveloputent Commission Regular Meeting - February 10, 1989 6. NEW BUSDTESS (Cont.) b. Continued... Fralklin Streets. He has purchased most of the property on the block and is pro ing to build a new office building and a vehicle storage area for the y. He would eventually like to ga' control of the remainder of the bl k and build a storage area and expand the yard. Mrs Kolata explained that, although the project does not qualify for tax abatement under the current guidelines, Mr. Murdock would still like the project to be considered for abatement. Commissioner Piasecki, Councilman Steve Liu ke, and staff met with Mr. Murdock to discuss the possibility of an exception to rhe guidelines. Ms. Auburn asked under what circumstances exoaptions have been made for other projects. Mrs. Kolata responded that there have been three exceptions made by the Common Council. They were not within red elopment areas; therefore they did not come before the Commission for app oval. Parkview Atrium received three years of abatement because of extraordinary excavation costs, removing con rete supports from an old railroad trestle. The new Venture store and Mar:ins supermarket near Miami and Ire and Roads received three years of abatement because of the extraordinary cos involved in removing a retention bas . The Memorial Skywalk Office Bui ding received three years of abatement because of the extraordinary cos incurred in building a skywalk to the I Hospital. Mr. Murdock believes his project deserves abal4ment because he is investing in the Studebaker Corridor redevelopment area. His property and all of the land he would to develop was targeted for �:3 South Bend edevelcpment Commission Regular M ing - February 10, 1989 6. NEW BU5IIlJESS (Cont.) b. coritinued... isition. His private investment in area would save the department the tantial cost of acquisition and cation of his business. Kolata noted that questions remain exactly what he will build, how it look, and the appearance of the ge area of the property. Mr. Murdock showed a site plan for the pr posed project which included the office building, a dry storage building andthe enclosed, secured yard. Their present facilities are very cramped and they are renting a storage area across the street from their property. Their most pressing need is for additional office space. He showed a sketch of the pr posed office building which would be a single story, flat roofed building, constructed of cement block with a brick veneer. It would have a window - walled front entry and some landscaping in front. He indicated that they would plan to use landscape screening for their f ced storage area. Mr. Piasecki asked about the number of vehicles that would be stored on the prc perty. Mr. Murdock responded that his ccapany does work throughout Indiana and Illinois. They have a lot of vehicles, most of which will be in use out of town. But, there may be times when more of them would be unused and stored on 's property. Kolata noted that there is no Design iew Committee for the Studebaker ridor area, but, if the Commission roves tax abatement for Mr. Murdock, would like the Commission to require t he keep the staff informed of the gress and seek staff approval before ing ahead with each phase. Qss South Bend I Redevelopment Commission Regular ting - February 10, 1989 6. NEW =INESS (Cont.) b. Coftinued._. Ms Auburn stated that since there is pr ent for awarding tax abatement for a project if there are extenuating circumstances, she would support a three ye2Lr abatement for Mr. M rdock's project on the condition that he allow the staff to approve the screening and general ap ce of the various aspects. MrJ Murdock indicated that he was hoping fo ten years of abatement. Mr. Nimtz noted that the Commission only males a recomt endation to the Common Council on the tax abatements. The final decision on the length of the abatement would be made by the Council. Mr. Doncho asked what the construction costs for the project are. Mr. Murdock responded that the cost of this first poxtion of the project is $270,000. . Kolata noted that the present pr has paid $3,500 in taxes over the past five years. According to the abatement schedule for a ten year abatement, he would pay taxes of $73,241 on the improvements and have $71,789 With a six year abatement, he would pay $35,969 and have $51,049 abated. With a three year abatement, he would pay $14,648 and have $28,861 Mr. Doncho asked if Mr. Murdock would be coming back to the CoYmnission requesting abatement for the future development he plans. Mr. Murdock indicated that he �d on the prospect of a future request additional tax abatement, Mr. Donoho Lcated that he could support no more i six years of abatement for this iect. -10- South Bend Regular Me 6. NEW BU b. Ca. Mr be it Ms ro, Mrs. I new mE has asc East f 8. NEXT C The nE Commi E at 10: 9. ADJCUF There before motion Combs adj our. elopment commission - February 10, 1989 (Cont. Combs asked why the project couldn't onsidered for ten years of e nent. Mr. Nimtz responded that the an Council had not approved more than :e years of abatement for a project did not meet the prescribed elines. Ms. Auburn also responded . the job creation to be realized was significant enough to warrant ten s of abatement. Mrs. Kolata noted the reason this is considered by the Fission at all is because it is in a Incremental Financing Allocation Area the longer the abatement, the longer gill take to build up a tax increment h can benefit the area. L a motion by Mr. Donoho, seconded by Auburn and unanimously carried, the fission approved Resolution No. 868 wing an application for six years of . property tax deduction for property ted at 1320 S. Franklin Street, Litional upon Mr. Murdock accepting .gn review by the staff. a introduced, Mr. Iarry Koepfle, a of the Redevelopment staff. He d planning responsibilities for the area. Regular Meeting of the Redevelopment in is scheduled to February 24, 1989 a.m. g no further business to come Commission, Mr. Doncho made a t the meeting be adjourned. Mr. nded the motion and the meeting was at 10:55 a.m. COMMISSION APPROVED RESOLUTION NO. 868 APPROVING AN APPLICATION FOR SIX YEARS OF REAL PROP= TAX DEDUCTION FOR PROP= LOCATED AT 1320 S. FRANL N STREET ..*�vZ .A NEXT COMMISSION MEETING : I i 0)11 ZIP xa�_ President _11_ Mrs. Ann E. Kolata, Director