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HomeMy WebLinkAboutRM 09-08-89me DA 1) Ift'Re 001DIV September , 1989 10:00 a.m. Presiding fficer: Mr. F. Jay Nimtz President I� "TO) Members Present: Absent: Legal gounsel: Redevel opment Staff: Bureau of Housing Staff: News a: Others 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Mr. F. Jay Nimtz, President Mr. Roman J. Piasecki, Secretary Mr. Sandy Combs, Assistant Secretary Mr. Michael Donoho Ms. Paula N. Auburn, Vice President Ms. Carolyn Pfotenhauer Mrs. Ann Kolata, Director Mr. Jon Hunt, Executive Director Mrs. Cheryl Phipps, Office Manager Ms. Hedy Robinson, Econ. Dev. Specialist Mr. Larry Koepfle, Econ. Dev. Specialist Mr. K.C. Pocius, Econ. Dev. Specialist Mr. Ted Leverman, Rehab Specialist Mr. James Wensits, South Bend Tribune Ms. Amanda Hart, WAOR Mr. Thom Howell, U -93 Mr. Carter Wolf, Center City Associates Mr. John Martell Mr. Sean Major Mr. Nimitz announced that the Executive Session held prior to the meeting would be continued following adjournment of the Regular Meeting. 2. APPROWLL OF FEMUTES Upon a motion made by Mr. Piasecki, seconded COMMISSION APPROVED THE NINOTES by Mr. Combs and unanimously carried, the OF THE RESCHEDULED REGULAR minutes of the Rescheduled Regular Meeting of NAG OF AUGUST 25, 1989 Friday August 25, 1989, were approved. 3. Bethel Business Machines $ 139.00 Bureau of National Affairs 5.00 -1- f e South Bend Regular Mee 3. APPROVI 4. Redevelopment Commission sting - September 8, 1989 L OF CLAMS (Cont.) Gen Fund Star Twiporary Services, Inc. Tri-Cot inty News NatiorgLl League of Cities Bureau of Traffic & Lighting Indiana Michigan Electric LaPo Construction Lawson Fisher Associates McCl ey, Richard E. Trans Tech Electric, Inc. Total .I.F. 1988 GRAND Upon a motion made by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commis ion formally approved the claims submitted September 4, 1989 and ordered checks dated September 8, 1989 to be There There no cc munications. 5. OLD BU 1NESS There Z no old business. RE a. -2- 143.40 184.80 10.34 14.00 $ 496.54 $ 737.52 5.55 81,362.59 6,742.10 5,000.00 439.32 $ 94,287.08 $ 94,783.62 COMMISSION APPROVED THE CLAIMS SUBMITTED SEPTEMBER 4, 1989, AND ORDERED CHECKS DATED SEPPEMBER 8, 1989, TO BE RELEASED THERE WERE NO CCHMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meoting - September 8, 1989 6. NEW "D,1ESS (Cont.) a. conzinuea... Kolata noted that two appraisers :appraised the property and the lution sets the fair re -use value at ,000 for the 140,462 sft building. is basically a land value. It does include demolition of the building, did not assume there was no value to building itself. The Commission is testing the reuse be camnercial or ce or retail. Mrs. Kolata noted for record that the bid specifications not complete, but the Commission nds to require that at least the stage on the first floor should be per retail or high pedestrian traffic 'ice commercial. The Commission also nds to suggest that the following ures be included: 1) an atrium where escalators presently are, 2) some ovation of the facade or distinctive ance along Michigan Street, and 3) development of a food court. Mr. Wensits asked if the Commission has reason to believe that there will be any bids. Mrs. Kolata responded that they do not. know. There have been some inquiries about the building, but there may not be any bids at this price. However, it is necessary to go through this process and fir d out that there are no bids at this price before the commission can negotiate a rrice. Mr. Wolf noted that the Robertson's Task Foxce has not completed its work, but they do support the Commission's move fbiward through this bid process. Upon a motion by Mr. Combs, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 885 ap roving the fair re-use value of the Rohertson's Building. -3- CODM'BSSION APPROVED RESOIDTION NO. 885 APPROVING THE FAIR RE USE VAZDE OF THE ROBERTSON'S BUILDING South Bend Regular Me 6. NEW BU b. coy C. elop wnt commission - September i, 1989 (Cont.) Mrs. Kolata noted that October 3rd is not a xegularly scheduled meeting of the Ccamission. There will, however, be a public opening and anyone who wishes to attend may do so. During the week between October 3rd and the regular Ccomission Ming on October 13th the staff will prepare a report on whatever DroDosals are received. Upon a motion by Mr. Piasecki, seconded by Mr. combs and unanimously carried, the ammission authorized publication of Notice of Intended Sale of property located at 211 -231 South Michigan Street in the South Bend Central Development Area with publication dates to be September 15 and September 22, 1989, and ipt of bids to be at 10:00 a.m. on amber 3, 1989. Mrs. Kolata noted that completion of the retail space was not included in the construction bid. It is approximately 3, 00 sft of empty space with two storefronts. The re-use valuation based on two appraisals is $8.82 per sft. We will be advertising for tenants who would bid on leasing all or a portion of the spE ce. A three year lease term is and the lease would be offered on a net basis. This offering is -4- COMMISSION AUTHORIZED PUBLICATION OF NOTICE OF INTENDED SALE OF PROPERTY LOCATED AT 211 -231 SOUTH MICHIGAN STREET IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA WITH PUBLICATION DATES TO BE SEPTEMBER 15 AND SEPTEMBER 22, 1989, AND RECEIPT OF BIDS TO BE AT 10:00 A.M. ON OCTOBER 3, 1989 South BendRedevelopment Commission Regular Meoting - September 8, 1989 PF C. Q e. by St rwrm in of (Cont.) nded to identify interested tenants. proposals are in, we will try to with the bidders to make the best of the space and will then have the truction specs prepared. . Eblata noted that the income from rental space is combined with the m-e from the parking garage to pay for rational costs of the garage and to e debt service payments. a motion by Mr. Piasecki, seconded [r. Combs and unanimously carried, the Fission adopted Resolution No. 886 roving the fair re-use value of the Joseph/Wayne Parking Garage Retail a motion by Mr. Donoho, seconded by C:ambs and unanimously carried, the Fission authorized publication of ce of Intended Lease of Retail Space he St. Joseph/Wayne Parking Garage in South Bend Central Development Area . publication dates to be September 15 September 22, 1989, and receipt of to be at 10:00 a.m. on October 3, Rolata explained that the location 2 South Columbia was just north of -5- CXHM ISSION ADOPTED RESOLUTION NO. 886 APPROVING THE FAIR RE USE VALUE OF THE ST. JOSEPH/WAYNE PARING GARAGE RETAIL SPACE CCH IISSION AUTHORIZED PUBLICATION OF NOTICE OF INTENDED LEASE OF RETAIL SPACE IN THE ST. JOSEPH/WAYNE PARING GARAGE IN THE SOUTH BEND CENTRAL DEVELOPNENT AREA WITH PUBLICATION DATES TO BE SEPTENBER 15 AND SEER 22, 1989, AND RECEIPT OF BIAS TO BE AT 10:00 A.M. ON OCTOBER 3, 1989 South Bend Regular Mee elop4nent commission - September 8, 1989 6. NEW BU18INESS (Cont.) e. comtinuea... f. a son Street. It is currently awned by Board of Public Works. The Board has ady passed a resolution conveying s to the lot to the Redevelopment fission since the Commission owns the erty adjacent to this. Both are nt lots. The two lots will be aged together and put up for public There is the possibility it will be Ifor a house move. Llpon a motion by Mr. Combs, seconded by Mr. Piasecki and unanimously carried, the Ccomission approved Resolution No. 887 accepting the transfer of real property located at 622 South Columbia in the So 4th Bend Central Development Area. Kolata explained that the Commission had a source of funds from the City vet to do some of the preliminary work the Studebaker Corridor related to bond issue. Tax increment in the lebaker Corridor has accrued to jhtly more than $21,000. This ►lution reimburses the City $21,000 to let the costs of this preliminary -aisal, title and legal work. CONMISSION APPROVED RES011MOEV 1-40. NE1' 1 NG THE TRANSFER OF SOUTH FREAL PROPERTY LOCATED AT 622 - 0DIUMIA. IN E SOUTH BEND CENTRAL DEVELOPMENT A• LTlx)n a motion by Mr. Donoho, seconded by COKnSSION APPROVED RESOLUTION NO Mr. Combs and unanimously carried, the 888 AUTHORIZING REIMBURSEMENT TO Cmmission approved Resolution No. 888 THE CITY OF SOUTH BEND FOR authorizirxj reimbursement to the city of EXPENDITURES MADE WITHIN THE South Bend for expenditures made within STUDEBAKER CORRIDOR DEVELOPMENT tho Studebaker Corridor Development Area. AREA South Bend Redevelopment Commission Regular Meoting - September 8, 1989 6. NEW BUSINESS (Cont.) g. comzinuea... Mit. Kolata explained that the Redevelopment Commission has the power to declare an area an Economic Development Ar which is very similar to a Redevelopment Area except that it is not based on findings of slum and blight, but on economic development: job creation and DiA)lic benefit. K. C. Pocius explained that the area being declared is called the Brick,/olive Economic Development Area. It is located in the northwest part of the City, bounded by Brick Road on the north, U.S. 31 Bypass on the east, the Indiana Toll RoEd on the south, and Olive Road on the t. The total amount of land is apl 1roximately 98 acres. It is zoned "D" is in a prime location with its location at the intersection of the Toll Ro4d and U.S. 31 Bypass. e are currently about eight nesses in the area along Technology e, using approximately 40 acres of 98 acre tract. The area is not ly to develop further without stance in the form of public ovements such as streets, sewer and r lines. reason the Commission would like to .are the area an Economic Development i at this time is that we have had ;act with a major national retail .et mall. The chain has approximately ity existing outlet malls throughout United States, primarily in the East Southeast. They have five more under ,traction and are considering locating her one in our area. declaration of this area as an omic Development Area and location of mall there would increase the City -7- South Bend Redevelopment Commission Regular Meoting - September 8, 1989 6. NEW BUTS (Cont.) g. continued... : base, create jobs, and promote ther development of the area in eral. The addition of the outlet mall ne would create fifty full time and my part time jobs to the area, Toyed by twenty -two full time and ty -eight part time tenants. The mall ld construct a 100,000 sft building in southwest portion of the Brick/Olive a. Hard construction costs are jected at $3,300,000 with total ject costs totalling approximately 700,000. Another benefit to the South Bend area will be that this outlet mall projects t they will attract approximately 500,000 shoppers per year, two thirds of t1wm. frarn outside of a twenty -five mile radius. The sales revenue they project is $7,000,000 the first year, $9,000,000 the second year, and $10,300,000 the third year. The outlet mall expects to be open by July 1990. Mr. Pocius explained that the public iiqrovements anticipated for this area woLld be the construction of a new, three lare access road extending approximately 1,C00 feet south from Brick Road into the prcject site. It would serve the outlet null and any other future development in area. The cost of the roadway with se-oer and water lines is approximately $6 0,000. Mr. Pocius explained that financing for the roadway and any sewer and water costs is expected to came from a State of Indiana grant or loan from the Toll Road Transportation Improvement Fund. If a grant application failed, we would apply for a low or interest free loan which would be repaid from tax increment generated in the Brick,/Olive Economic Development Area. We would expect to be South Bend Redevelopment Camission Regular Me§ting - September 8, 1989 6. NEW BUSINESS (Cont.) g. coPti.nuea... 1107 su0cessful in receiving either a grant or a ..oan because of the project's proximity to Exit 72 of the Toll Road, but if ne ther application was successful, we wcxt1d,issue a small revenue bond which wod1d. be repaid from tax increment generated in the Brick,/olive Economic De elooment Area. Kolata noted that the mall is ang for a start date yet this year. want assurances from the City that City can build the road and the ssary water and sewer extensions. Mr. Pocius explained that we expect that th e will be some supporting cc mexcial development which typically follows the development of a mall. Mr Nimtz noted that the developers of ttu-s mall have searched the country for sLL table locations for their malls and are very enthused about the South Bend Kolata noted that Resolution No. 889 ares the Economic Development Area, blishes a tax increment financing . with the same boundaries as the cmic Development Area and approves Development Plan for the Brick,/olive cmic Development Area. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 889 declaring an area in the South Bend Central Development Area as an Economic elopmnent Area and approving a elopment Plan for said area. • ell .1 1 •• • 1 1 • . 121 South Bend Redevelopment Caimnission Regular Meoting - September 8, 1989 6. NEW BUSINESS (Cont.) h. coftinued... Ms Robinson explained that the tax abatement petition is for Main Street Raw Prcyperties, the new owners of the Un-istman Building. She read the staff report on the petition. The renovation will include a new facade, heating, ventilating, air coi ditioning and electrical work. Since the owners do not have committed tenants, there is no job information available. Th total project cost is estimated to be $700,000. The property is properly zoned for the prc posed office use. It is located in a abatement impact area and also in a incremental financing allocation ar (a. The petitioner qualifies for ten years of real property tax abatement unler the Office Projects category, based on 1) the location within the Central Business District, 2) agreement to submit si plans and specifications to the ign Review Carmnittee for cox sideration, 3) a ccumitment of at lu st 75% of the net leasable square foc tage of the first floor to retail bLiciness, and 4) the rehabilitation of tho building which has been vacant for at le4st a year. d on a total proj ect cost of 1,000, the estimated taxes to be .ed over the ten year period are 1,818. The taxes to be paid over that year period are estimated to be ,572. Mr. John Martell, one of the owners of the building, explained the relabilitation project. He indicated that the entire exterior will be renovated with the application of a cor. system and awnings. They intend to begin the project within 30 to 45 days and complete it by April -10- South Bend Regular M 6. NEW BU h. co 7. i. Redevelopment Commission ting - September 8, 1989 (Cont.) mr%k. Kolata noted that the staff has met wi the new owners once and will be ting with them again. LTp)n a motion by Mr. Combs, seconded by Mr. Donoho and unanimously carried, the axmission approved Resolution No. 890 approving an application for real pinperty tax deduction for property lo6ated at 209 N. Main Street. Development Housing Development ion Corporation 1 ll S. St. Joseph * includes $4,821.00 contingency Mr. Piasecki declared a conflict of in Rxest on this item because of his me 'p on the Board of the Housing De elopmernt Corporation. He did not icipate in the discussion or the V0 :e. Mr LeveYman noted that this project consists of one one - bedroom unit and one three-bedroom unit. The HDC already owns sereral properties in the area. Upon a motion by Mr. Cmibs, seconded by Mr. Doncho and carried, the Cmmission approved the proposal and loan in co ion with the Rental Rehab Program for property located at 1711 S. St. J nh Street. Mrs. lata noted that we expect the start of constniction of the second office building on the East. Bank before the end of September. -11- COMMISSION A"'• • ED RESOLUTION NO. 890 APPROVING AN APPIZCATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 209 N. MAIN - :11 $53,037.00* $15,000.00 (public) $12,674.00 (private) $25,786.00 (CDBG) COMMISSION A' `'•• ED THE PROPOSAL AND LOAN IN CONNECTION RENTAL REHAB PROGRAM FOR PROPERTY IOCATED AT 1711 S. ST. JOSEPH STREET ry\T6ei\4&1M\4; A;CC114 � South Bend I Redevelopment Comission Regular MEOting - September 8, 1989 Mrs. K lata also noted that the parking garage is expected to open the last week of Se . Mr. Wolf expressed CCA's support of the proposod renovation of the Christman Buildima. 8. The next Regular Meeting of the Redevelopment NEXT CCHMISSION MEETING Commis ion is scheduled for September 22, 1989, at 10:00 a.m. 9. AN There being no further business to come ADJOURNMENT before the Redevelopment Commission, Mr. Donoho made a motion that the meeting be adjourned. Mr. Combs seconded the motion and the ting was adjourned at 10:50 a.m. Paula '-'-L 1 J, Z��ZZY4a 1. Auburn, Vice President Ann E. Kolata, Director -12-