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HomeMy WebLinkAboutRM 10-13-89October 13, 1989 10:00 a.m. Presiding Office 1. ROLL CAIL 2. Members News Others: Mr. SOUTH 1 PEDEVELDPM= CONMISSION REGULAR 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 Doncho Ms. Jenny Pitts - Manier Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Ms. Hedy Robinson, Economic Dev. Specialist Ms. Cleo Hickey, Economic Dev. Specialist Mr. Larry Koepfle, Economic Dev. Specialist Mr. Than Howell, U -93 Mr. Carter Wolf, Center City Associates Mr. James C''ronk Mr. Tony Fortuna, Harbor Metal Treating announced that the Executive Session held prior to the meeting would be following adjo mywnt of the Regular Meeting. Upon a motion made by Mr. Piasecki, seconded by Ms. Auburn and unanimously carried, the minutes of the Regular Meeting of Friday, Septmnber 22, 1989, were approved. Forrest, Peggy HUD /URA Training De t of Economic Development Business Systems, Inc. Ann Kol to -1- CONMISSION APPROVED THE EINUTES #F THE 1MGULAR MEETING OF FRIDAY, SEPIEMBER 22, 1989 R 470.00 70.00 100.78 9.25 4.64 South Bend Regular Meg 3. 4. elopment Commission - October 13, 1989 CLAIMS (Cont.) Omni CN I Center United 1 Service Valley, ican Bank Federal Research Press Natio Development Council Warren, Gorham and Lamont, Inc. Commmity Development Service Forrest Peggy Gary Mster Photography Gene's Camara Store General Fund (postage) Cleo Hi (key Ann Kol to Natio Council for Urban Economic Dev. The Pra ram Company South Tribune United Parcel Service Valley lanerican Bank (VISA) Midwest Real Estate News Total AdMin 1989 Hunzikeits, Inc. Indiana Michigan Power Ziker & Compnay Catering Total T.I.F. 1988 Upon a motion made by Ms. Auburn, seconded by Mr. Conks and unanimously carried, the C omission formally approved the claims submitted September 25, October 2, and October 9, 1989, and ordered checks dated October 1, October 6, and October 13, 1989 to be reledsed. There were no ccammnications. IWA 371.50 17.00 86.01 66.00 595.00 58.70 5.30 310.00 461.00 14.25 111.55 75.00 7.89 75.00 299.75 171.45 8.50 15.17 32.00 $ 3,435.74 $ 3,711.00 5.55 56.00 $ 3,772.55 $ 7,208.29 OCHNISSION APPROVED THE CLAIMS 2, AND OCIOBER • ORDERED •i i •1 ar• OCIOBER OCIOBER 6, AND OCIOBER 13, 1989, TO BE RELEASED THERE WERE NO COMMUNICATIONS South Bend Regular Me 5. OLD BUT There 6. NEW BU a. St elopment Commission - October 13, 1989 no old business. THERE WAS NO OLD BUSINESS Mrs Kolata noted that a proposal has been received for Parcels C4 -3 and C4 -30. Those are the parcels located between Michigan Street and St. Joseph Street along Washington Street. They are cun,ently being leased to Center City Associates and used for surface parking. The proposal is from a developer of hotel buildings for the construction of a 136 room all suites hotel. Mrs. Kolata shared a preliminary site plan which pro a hotel centrally located on the is with surface parking along the per ter. The developer is interested in ing if the Commission would consider selling that property for an all suites hotel before they invest more moriqy developing detailed plans. They are willing to negotiate further on how the building would be placed on the site. The developer, Gulf Coast Development, Inc., represents a high quality hotel, conrected with a major U.S. motel chain. The all suites hotel is a new name and co pt for this hotel chain. They are plarning to build 150 all suite hotels around the country during the next three yeaits. The motel chain has secured $35C,000,000 in financing, so this prorosal will have its financing once the project is approved by the motel chain. Mrs. Kolata noted that the Convention and Visitors Bureau of the Chamber of Commerce has indicated that South Bend is in reed of additional hotel space in the dowrtawn. The Bureau is unable to schedule larger conventions because of the limited number of hotel rooms available in the downtown. -3- South Bend Regular Me 6. NEW BUI a. co 10 elopment Commission - October 13, 1989 (Cont.) Mrs Kolata noted that this hotel chain d not have a restaurant or bar on si , so there would not be competition wi area restaurants. Ms. Auburn noted that many hotels are branching into the all suites hotel mar t. Through her membership on the Chamber of Commerce Board of Directors, she knows that the limited hotel space in the downtown has kept some conventions f coming to South Bend and supports the I idea of additional downtown hotel Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Ccuu.ssion indicated their interest in pursuing the hotel proposal for parcels C4- and C4 -30 in the South Bend Central Dev lopment Area and authorized staff to wor with the developer for 60 days to er develop a site plan. The 'ssion asked that a complete proposal be resented to the Commission for app within 60 days. Mrs. Kolata noted that in August, Harbor Me Treating submitted a proposal to purchase the parcel of land im ediately south of their property. The Cc mission asked the staff to negotiate with Harbor Metel on the terms. The staff has prepared a Contract for Sale of Iancl which includes the following: 1) sale of the property for $5,400, the appraised val e; 2) delivery of the deed to the property on or before November 1, 1989; 3) the developer will submit a faithful perf ormance guarantee of 10% of the -4- UN 1 • � South Bend edevelcpment commission Regular Meeting - October 13, 1989 6. NEW BUSYNESS (Cont.) I• • qI '1;rI7r W C. price at the time of the signing of a Contract; 4) construction is to beg by November 1, 1989 and be leted on or before October 1, 1990; 5) lans for the project must be 'tted to the Design Review Committee witidn 45 days; 6) provide information to the Commission on the financing of the Mr. Fortuna indicated that the purchaser of the land would be Fortuna Land Caq)any. Mrs. Kolata noted that the Conixact. would be changed accordingly. Mr. Fortuna also noted that Harbor Metal Pralucts was the second company to locate in 1he Monroe Industrial Park. They do most of their business within a radius of 75 miles of South Bend, but have some cus amens as far away as Chicago and the Peninsula of Michigan. He noted tha the growth of the cxampany since mov to this area has exceeded their tions. Upon a motion by Ms. Auburn, seconded by COWILSSION AUTHORIZED THE Mr. C mibs and unanimously carried, the EXECUTION OF THE CONTRACT FOR CcumLission authorized the execution of SALE OF LAND WITH FOBMM LAND the Contract for Sale of Land with COMPANY FOR $5,400 Fortuna, Land company for $5,400 according to the terms listed above. Mrs Kolata explained the related items 6.c , 6.e., and 6.f. Fortuna Land Company is interested in tax abatament on the project. They qualify for three years of real property tax abatament and five years of personal p ertv tax abatement. Since the -5- South Bend edevelopment Commission Regular Meeting - October 13, 1989 6. NEW BUSINESS (Cont.) c. continuea... elopment CaTmission is still the of the property, the Commission file the petition for the real rty tax abatement on behalf of na Land Company. Ms. Robinson read the tax abatement re rt. Harbor Metal proposes to expand its present facility from approximately 22,000 square feet to 31,000 square feet and purchase two furnaces for heat tre tting metal products. Both furnaces will be housed in the addition. The pro ect will create three new permanent full time jobs within the first year, rep ting an annual payroll increase of 52,000. Harbor Metal presently employs eighteen permanent full time e p oyees with an annual payroll of $312,000. The total project cost, inc uding the purchase of the new equlpiient, is estimated at $935,000. The property is properly zoned for the prx4xsed use. It is located in an area designated as a tax abatement impact area and also in a tax incremental financing allccation area. The project qualifies for five years of personal property tax abatement. The amount of taxes to be abated over the five year period are estimated to be $72,067. The estimated taxes to be paid over that same five year period are est' ted to be $19,100'. The project qualifies for three years of real property tax abatement. The amount of t axes to be abated over the three year period is $13,361. The estimated taxes to k e paid over the same three year period are $6,781. Upon a motion by Mr. Donoho, seconded by COMMISSION AUTHORIZED THE FILING Mr. Piasecki and unanimously carried, the OF THE PETITION FOR REAL PROPERTY Ccimission authorized the filing of the TAX ABATEMENT ON BEHALF OF petition for real property tax abatement FORIUNA LAND COMPANY on kehalf of Fortuna Land Company. M South Bend Regular Me 39 e. f. Q elopmezt Commission - October 13, 1989 (Cont.) Upon a motion by Ms. Auburn, seconded by Mr. Combs and unanimously carried, the Coixiission approved Resolution No. 894 approving an application for real pro tax deduction for property 1 ted at 802 S. Fellows Street. Upon a motion by Mr. Combs, seconded by Ms. Auburn and unanimously carried, the Ccandssion approved Resolution No. 895 approving an application for personal property tax deduction for property locAted at 802 S. Fellows Street. Ms. Auburn noted that the property which was sold to Harbor Metal and which would be receiving the tax abatement cun,ently payer no taxes. Eden with the abatmwmt it will be paying taxes by the secl nd year and will be paying full taxes in ve years. Mrs. Kolata noted that under the new procedure for expanding an allocation area and amending a development plan, the -7- COMMISSION A• "• E• RESOIDTION 140. 894 APPROVING AN A•• • FOR PEAL ..••E-TY TAX DEDUCTION FOR PROPERTY • X11 AT 802 S. FELLO -EET (FORIUNA 1AND COMPANY) COMMISSION A- - -• ED • • • •• APPROVING •• • FOR PERSCNAL PROPERTY TAX DEDUCITON FOR PROPERTY LOCATED 802 S. FELIDWS STREET (HARBOR i TREATING) South Bend edevelopment Coirmiission Regular Mee ing - October 13, 1989 6. NEW BUSMS (Cont.) d. continued... onl action the Commission will take t y is to file Resolution No. 893. Thi action sets the time of public h ing on the resolution for October 27, 198 at 10:00 a.m. Notice of the public hearing has been sent to the South Bend Tr' and the Tri- County News and will be ]published today. We must also notify all property owners in the expansion areas and all neighborhood groups who have registered with us as affected nei (ftiborhood organizations. Those notices will be sent within the next few ution No. 893 adds two expansion , Expansion Area 2 and Expansion 3, to the South Bend Central opment Area. It also adds two rties to the acquisition list, 1 C2 -10 and parcel M2 -12. Mr. Koepfle explained the boundaries of and the significance of the expansion Expansion Area No. 2 includes all of laward Park, Viewing Park, the Edgewater Place Historic District and a sect-ion of land bordered by Wayne Street on the North, Notre Dame Avenue and Northside Boulevard on the east, Sample Street on the south and the St. Joseph River on the west. The area totals app ximately 81 acres, including the river. Expansion Area No. 3 is a section of land borfered by Michigan Street on the west, Mad3son Street on the north, the St. Joseph River on the east and Lot 111 of the original plat of South Bend on the sout� The land uses intended for the expansion are as follows: 1) The present ter neighborhood is a strong ntial area and would be preserved South Bend evelcpment Commission Regular Meeting - October 13, 1989 6. NEW BUSV,1ESS (Cont.) d. continued... as it single family residential area; 2) The Lincolm ay East corridor below Cooper Bridge to Sample Street is presently zon (d commercial and would continue to be commercial, maintained as a buffer to the res dential neighborhood encouraging imp ement to the commercial area); 3) How Lrd Park and Viewing Park would remain Cit, parks; 4) The area bounded by Wayne, N Dame, Northside, and St. Louis has a mixture of zoning. We would propose lea ing this a mixed use area but will p some changes to the zoning; 5) The expansion area north of LaSalle on Mictdgan Street is zoned commercial and will remain commercial; Mrs Kolata noted that our main interest in the Lincolnway East corridor is a cot4ile of problem properties which we would like to see developed to benefit the adjoining Edgewater neighborhood as welA as improve the corridor entrance to the lCitv. Mrs. Kolata noted that the staff will be meeting with interested residents of the Edgewater neighborhood on October 18 to adchess their questions and concerns aboLt being added to the development Mr. Piasecki asked Mrs. Kolata to arrange for Mr. Lentz, County Auditor, to explain the effect of TIF areas on the tax base. Mrs. Kolata responded that she would arraMe for Mr. Lentz to report to the Upor a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Cmmission ratified the action of the staff publishing the Notice of Public Hearing and setting the date of the public hearing on Resolution No. 893 for October 27, 1989, at 10:00 a.m. COrMIISSION RATIFIED THE ACTION OF THE STAFF PUBLISHING THE NOTICE OF PUBLIC HEARING AND SETTING THE DATE OF THE PUBLIC HEARING ON RESOLUTION NO. 893 FOR OCTOBER 27, 1989, AT 10:00 A.M. South Bend Regular Meg 39 a h. elcpment Commission - October 13, 1989 (Cont.) Mrs Kolata noted that the bid opening was scheduled for 10:00 a.m. on October 3rd There were no bids on the retail space. The staff will now pursue possible tenants and will also work with loatl ccuniercial realtors. We will later reqpiest permission from the Commission to pay a real estate commission if a real es to agent is able to secure a tenant for the space. Mrs Kolata noted that there were no bids at the 10:00 a.m., October 3, 1989, bid cperdng for the Robertson's building. She noted that after thirty days we will be in a position to negotiate price on the building. We are hopeful that once the price is negotiable we will be able to Out together a project for that Mrs. Ko ata reported that there will be a Special Commission Meeting on Tuesday, October 17, 1989, at 3:30 p.m. We will be taking f inal action on declaring the Brick/olive Economic Development Area as an econamio development area. Mrs. Ko] Jr. resi Authorit the city longer e Authorit Riley Hi Mayor tc to reported that Thomas J. Varga, ned from the Redevelopment He has moved to a home outside limits of South Bend and is no igible to serve as a member of the George McCullough, Principal of h School has been appointed by the replace him on the Authority. Mr. -10- REPORT ON BID OPENING OF OCTOBER 3, 1989, WITH RESPECT TO THE LEASE OF RETAIL SPACE IN THE ST. JOSEPH/WAYNE PARING GARAGE REPORT ON THE BID OPENING OF OCTOBER 3, 1989, WITH RESPECT TO THE ROBERTSON'S BUILDING South Bend evelopment Commission Regular Meeting - October 13, 1989 8. Varga w*s President of the Authority, and electio*s will be held to reassign the Mrs. Ko ata noted that the first tenants will be movii xj into The Pointe at St. Joseph on October 20. Lynn Weber is very pleased with the interest expressed by the community to date. There have been many inquiries. Mrs. Ko ata reported that the staff has been working with a developer interested in buildirxf a downtown office building of signifi t size. We hope to be receiving a proposal from the developer in the near future. Mrs. Ko ata thanked the Redevelopment staff for the hard work they have put in during the last feir, busy weeks. Hedy Robinson, Larry Koepfle and Cleo Hickey put in a lot of time preparirxj the information on the expansion areas for Resolution No. 893. Mr. N' z added his thanks to the Redevelcypment staff. They are a loyal, campetept staff. Mr. Fortim thanked the staff, particularly Hedy Rcidnscn, for her effort on behalf of his project. He needed the tax abatement to move fbivard quickly so that they could begin. Mr. Wolf noted that Yogurt and More! has opened A. frozen yogurt and sandwich shop next to Erni 's Shoe Repair on Michigan Street. Also, tle Ms. Shcppe has moved from their former location on Colfax to Wayne Street, across tram Edwardos. Mrs. Ko ata reported that the St. J ayne Parking Garage has had 170 parkers. The nod, regular meeting of the Redevelopment NEXT CESSION MEETING Commission is scheduled for October 27, 1989, at 10:OC a.m. -11- South Bend development Ccumission Regular Mee 1ng - October 13, 1989 9. There bBing no further business to came before rhe Commission, Mr. Piasecki made a motion that the Ming be adjourned. Mr. Donoho semrxled the motion and the meeting was adjwrned at 11:10 a.m. Jay Nimtz, President -12- . 0 ._MIND_ Ann E. Kolata, Director