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Home My WebLink AboutRM 05-12-89May 12, 19 10:00 a.m. Presiding 1. Econ. ; Bureau News M, Others 2. SOUTH BEND REDEVELOPM= CCM4ISSION REGUTIAR MEETING 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 unsel: Ms. Carolyn Pfotenhauer pment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Mrs. Hedy Robinson, Economic Dev. Specialist Ms. Cleo Hickey, Economic Dev. Specialist Mr. Larry Koepfle, Economic Dev. Specialist !v. & Bus. Assistance Staff Mr. David Norris, Economic Dev. Specialist if Housing Staff: Mr. Ted Leverman lia: Mr. Jim Wensits, South Bend Tribune Mr. Than Howell, U -93 Mr. Carter Wolf, Center City Associates Mr. Mort Ziker, Ziker Cleaners Mr. Kevin Butler Upon a motion made by Ms. Auburn, seconded by CESSION APPROVED THE MINUTES Mr. Combs and unanimously carried, the OF THE REGULAR MM7ING OF FRIDAY, minutes of the Regular Meeting of Friday, APRIL 28, 1989 .April 28, 1989, were approved. 3. APPROVAL OF CLAIM (Cont.) Gene's Global Express 'amera Shop amputer Supplies -1- $ 16.00 39.95 13.48 South Bend RedevelcpTient Commission Regular Meeting - May 12, 1989 3. APPROVAL OF CLAIMS (Cont.) Gurley Leep Buick Hollada y Corporation Metropolitan Services Omni CN N Center Simon lublications Star Tenporary Services Travelirore City Clerk's Office Conway Data, Inc. Chambez-of Commerce Peggy orrest Fund ising Institute Indiana. Assoc. for Community Econ. Dev. Larry lbepfle Petroleum Traders Waterfy ont Center Coffee Time Service Total Admin 1989 Nickle & Piasecki Peirce & Associates L. L. Geans & Sons Indiana, & Michigan Power Ken Heicea & Associates Total T.I.F. 1986 Ken Hexceg & Associates Indiana & Michigan Power Total T.I.F. 1988 Grand Ubtal Upon a motion made by Mr. Ccmbs, seconded by Mr. Do oho and unanimously carried, the Commission formally approved the claims submitted May 1 and May 8, 1989 and ordered checks dated May 5 and May 12, 1989 to be released. Ms. Auburn declared a conflict of interest and did not vote. -2- 19.45 456.17 25.00 437.90 37.20 140.00 252.00 17.95 75.00 80.00 620.00 32.45 60.00 175.66 15.12 55.00 24.70 $ 2,593.03 $ 300.00 122.10 100.00 39,340.08 5.55 2.715.00 $ 42,582.73 650.00 94.43 $ 744.43 $ 45,744.53 D r r• ... ►. o e • - al alp South Bend Regular Me 4. CQ44JN There i 5. OLD BUI a. Coy elopment Commission - May 12, 1989 no cc mlunications. Mrs. Kolata noted that the Commission did not take action at the April 28th meeting on Jerome E. Michaels' proposal for appraisal work in the West W n- Chapin Development Area. Mr. No is has renegotiated the cost of ocamercial appraisals with Mr. Michaels the staff now recommends that the Commission accept the proposal from Mr. Michaels for phase one for a cost of $6 ,600.00 Upon a motion by Ms. Auburn, seconded by f,.., Mr. Combs and unanimously carried, the CmTmission accepted the proposal of Jerome E. Michaels in the amount of $63,600 for appraisal work in the West W n- Chapin Development Area. 10 THERE WERE NO COMMUNICATIONS OF JEROME E. MICHAELS IN THE AMUM OF .10 FOR APPRAISAL WORK IN THE WEST WAS=GTON- Freidline John Freidline $96,876.00 $52,800 (private) W. Washington $44,500 (public) . Kolata explained that the Rental ab loans are forgivable at a rate of per year as long as the property is t up to code and remains available for t to law and moderate income ilies. The $96,876.00 contains an 8% tinctencv. Mr. Piasecki asked for an explanation of reloayment of the Rental Rehab loan. Ms. South Bend edevelcpwmt Commission Regular Meelting - May 12, 1989 5. OLD BUSIINESS (Cont.) 1W b. continued... a. enhauer responded that the Bureau of king files a Certificate of Waiver L year for 10% of the loan if the awer is in compliance. No payments made if the borrower remains in a motion by Mr. Piasecki, seconded by 4r. Combs and unanimously carried, the Camnission approved the proposal and loan in mmection with the Rental Rehab in accordance with the recbnmiendation from the Bureau of . Kolata noted that the Redevelopment mission is the petitioner for this tement on behalf of Niles/Washington ociates. At the time the petition was ed, the Commission was still the perty owner. Since then the title has n transferred to Niles/Washington ited Partnership Kolata read the staff report. The partnership proposes to construct a 36,000 sft, three story office building. The project will create fifteen new permanent full time jobs within the first year with an annual payroll of $622,125 and will maintain one hundred twenty existing permanent jobs with an annual payroll of $4,977,000. Total project cost is estimated to be $3,000,000. The property is properly zoned for the �^ prcoosed use. It is not located in an ar presently designated as a Tax t Impact Area, although the BEE ••' 1 • --'• 0 I -'•-•+' AND LOAN IN CONNECTION WITH TH1 RENTAL REHAB PROGRAM IN ACCORDANCE WITH THI PYjCCMMENDATION FROM THE BUREAU OF • H(XJSING South Bend evelopment Cc mnission Regular Meoting - May 12, 1989 6. NEW BUSINESS (Cont.) a. continuea... Coamon Council has indicated its intent to expand the boundaries of the Tax Abatement Impact Area to include this The property is located in a Tax Incremental Financing Allocation Area. staff report provides the Common cil with projected estimates of the of the abatement for a three, six, ten year abatement. This resolution ,orizes a ten year abatement. without :ement, the estimated taxes for that year period would be $1,611,420. L abatement, taxes for the ten year .od would be $813,767. Therefore, the nt abated would be $797,653. The ion Council will decide how long of an cement to award. Mr. Combs asked why the staff was reccnniending a ten year abatement. Mrs. Ko ata responded that the ten year abatement respects the changes in criteria that the Council has been di ing, but has not yet approved. Sh expects that the Council will co ider it based upon the proposed chelmes to their ordinance. Mr. Combs questioned the ten years in licht of recent effort to cut back on abatement. Mrs. Kolata responded that in caaparison to recent abatements, this prcject warrants the longer abatement based upon the larger investment, the nunber of jabs created, and the irTortance of the project to the area. Ms. z a motion by Mr. Donoho, seconded by Auburn and unanimously carried, the nission approved Resolution No. 875 coving an application for real Derty tax deduction for property ated at 115 N. Niles Avenue in the :h Bend Central Development Area. -5- •. ••••:l•O �alr • •' •'•••olJ • �� • D IN South Bend Redevelopment Conmission Regular Meting - May 12, 1989 6. NEW BUSINESS (Cont.) b. Ms Robinson read the staff report for this tax abatement. The petitioner, Ziler Cleaners, proposes to expand the present facility to :increase production to acconTcdate the coapany's industrial andcomyercial business. The project is to create thirty new permanent, full time jobs within the first year with an annual payroll of $500,000 and will maintain 110 existing permanent, full tine jobs with an annual payroll of .$2,750,000. Total project cost, including equipment, is estimated at $750,000. property is properly zoned for the posed use. It is located in an area gnated as a Tax Abatement Impact Area is also located in a Tax Incremental ncina Allocation Area. On $300,000 worth of equipment, the estimated personal property taxes to be paid over a five year period would be $33,784. With abatement, the taxes are estimated at $7,063. Therefore, the axro*mt to be abated over a five year pe0iod is estimated at $26,721. Ziker Cleaners qualifies for three years of real property tax abatement under the conmercial. criteria. With a total prcject cost of $450,000, the taxes to be abated over a three year period are imated to be $24,373. Without tement, taxes are estimated at $7 , 396. Therefore, the cost of the tement is estimated to be $48,023. in Butler, attorney for Ziker r� Cleaners, complemented Hedy Robinson on her, timely response to this tax abatement South Bend Regular Me 6. 0 C. Q elopment Connni.ssion - May 12, 1989 (Cont.) Upon a motion by Ms. Auburn, seconded by Mr. Coanbs and unanimously carried, the Conmission approved Resolution No. 876 approving an application for real and personal property tax deduction for p perty located at 251 E. Sample Street in the South bend Central Develop :anent No ern Oak Hanes Northern Oak 23EI E. Fox Homes tks. Kolata noted that the property at 236 E. Fox is a two bedroom, single fanaly dwelling. The Bureau of Housing estimate for the rehab was $22,850. No ern Oak Haines' proposal_ of $17,220 does not include a 6% contingency which waild make their proposal $18,280. •• � 1 • • ■ ■'• �� • Vii` •� $17,220.00 $10,780 (private) $ 7,500 (public) Upcn a motion by Mr. Piasecki, seconded COrMIISSION APPROVED THE PROPOSAL by Mr. Donoho and unanimously carried, AND IRAN IN CONNECTION WITH THE the Ccrnnission approved the proposal and RENTAL REHAB PROGRAM FOR PROPERTY loan in connection with the Rental Rehab LOCATED AT 236 E. FOX Prcgram for property located at 236 E. F03f Street. Mrs. Kolata noted that this amt addresses paragraph #5 of the lease with Center City Associates and changes the parking rates and validation for the 1 . It sets the rate for the first hour at $.50 or free with validation, the rate fo the second hour at $1.00 or free with IWz South Bend Redevelopment Commission Regular Meeting - May 12, 1989 6. NEW BUSINESS (Cont.) 7. d. continued... dation, and the rate for each .tional hour thereafter at $1.00 to a mane of $6.00. The amendment also Ides that Center City Associates may ;e one row of parking spaces for hly parking at a rate of not less i $20.00 per month. Mr. Wolf asked if the lease affects CCA's authorization to use the lot for special events, provided in the original lease in pc-uagraph #13. Mrs. Kolata responded that that provision remains unchanged. Ms Pfotenhauer stated that the amendment waLild be rewritten to insure that Mr. Piasecki noted that CCA would need to acKertise the new price structure so that both packers and merchants are aware of the changes. Mr. Wolf responded that CCA is planning to distribute flyers at the paiking booth and to the merchants. He estimated that it would take about one month for the new rate structure to be in full effect. Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Ccamission approved the Amendment to lease with Center City Associates, as aiwnded, for the parking lot in the South Beiid Central Development Area. Mrs. Kplata. introduced Ms. Cleo Hickey, a new member of the Redevelcpmment staff, who will be the project manager for the downtown, reDlacina Rick Pitts. Mrs. Kalata. noted that there will be a Mayor's Press Conference at 11:00 a.m. today at the site of the office building that Holladay Corporation is building at the corner of Niles and Washington Streets. The Press donference is being held to announce the of the tenant for the building. • Mai �I' '�' 11 • i WN I M� \PY1 •20� S ro 41N South Bend Regular Me 8. NEXT O 9. elopment Commission - May 12, 1989 The regular meeting of the Redevelop wnt CoMmis ion is scheduled for May 26, 1989, at 10:00 .m. There keing no further business to cam before the Commission meeting, Mr. Combs made a motion that the meeting be adjourned. Mr. Pi seconded the motion and the meeting was adjourned at 10:35 a.m. %- l well 0"► Mick • 1 o • i Ann E. Kolata, Director