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HomeMy WebLinkAboutRM 08-25-89August 25, 1989 9:00 a.m. Presiding Offic 1. ROLL 2. News Gi ;'L4M . •i 121D D Im - D!' . Mr. F. Jay Nimtz President Present: _'I- o 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 Ms. Paula N. Auburn, Vice President Mr. Michael Donoho sel: Ms. Carolyn Pfotenhauer ant Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Ms. Cleo Hickey, Economic Dev. Specialist Mr. Larry Koepfle, Economic Dev. Specialist Mr. Thom Howell, U -93 Mr. Howard Dukes, South Bend Tribune Barbara J. Allison, South Bend Tribune Rebecca Fenters Daniel B. Snider Victoria P. Snider Violet Barry Ms. Sally Arnold Iewis F. Morrow A. H. Gardner Margaret Hires announced that the Executive Session held prior to the meeting would be following adjourrnnent of the Regular Meeting. Upon a motion made by Mr. Piasecki, seconded by Mr. Combs and carried, the minutes of the Regular Meeting of Friday, August 11, 1989, were approved. Mr. Combs voted present. -1- COV14ISSION APPROVED THE NBNU1'ES FOR THE REGULAR ME =G'OF AUGUST 11, 1989 South Bend I Redevelopment Commission Resdieduleo Regular Meeting - August 25, 1989 3. 4. 5. 6. Business Systems Columbia Club Forrest, Peggy PfoteN iauer, Carolyn Star rD mWrary Services Tri-Cotinty News South I 3end City Clerk Counci for Community Based Development Illinois Issues Cheryl Phipps Shelt once National Housing Institute South Bend Tribune United Parcel Service Upon a motion made by Mr. Combs, seconded by Mr. Pi and unanimously carried, the Commis ion formally approved the claims submitted August 14 and August 21, 1989 and order checks dated August 18 and August 25, 1989, o be released. There vyere no commnications. There x4as no old business. a. 1. $ 204.21 9.00 800.00 15.06 466.20 18.54 15.24 6.00 29.95 20.97 3.00 22.23 17.00 $ 1,627.40 $ 1,627.40 COMMISSION FORMALLY APPROVED THE CLAIMS SUBNIITIED AUGUST 14 AND AUGUST 21, 1989, AND ORDERED CHECKS DATED AUGUST 18 AND AUGUST 25, 1989, TO BE RELEASED . Kolata introduced for the record the PUBLIC HEARING ON RESOLUTION NO. Lowing items: 881 An affidavit from Carol Smith, Classified Manager for the South Bend Tribune, stating that the Notice of -2- South Bend evelopment comiission Resdieduleo Regular Meeting - August 25, 1989 6. NEW BUMNESS (Cont.) a. cor zjriueu... Public Hearing was published in that newspaper on August 4, 1989. 2. A copy of page 7 of the August 4, 1989, issue of the Tri- County News showing that the Notice of Public Hearing was published on that date. We were unable to obtain a Proof of Publication from the Tri- County News in time for this meeting in spite of a written request sent accompanying the Notice and numerous phone calls this week requesting such proof. 3. Return receipts from the U. S. Post Office showing that letters to affected property owners were received. 4. A copy of Resolution No. 881, the subject of the Public Hearing. 5. As of 9:00 a.m. there were no written remonstrances received. Mr Nimtz asked if there was any ob ection to the items being entered into the record. There was no objection and the items were received into the record. >. Kolata explained that Resolution No. amends the Development Plan for the ith Bend Central Development Area by Ling a number of properties to the lui.sition list. Most of the properties in a block bounded by Monroe Street, _laws Street, South Street and Rush -eet. They will be purchased with the :ention of demolishing the structures I offering the property for resale. Ls acquisition is important in order to :ther the residential development of Monroe Park area by making this land tilable for multi - family apartments. MIE South BenddIRedevelopment Commission Reschedul Regular Meeting - August 25, 1989 6. NEW BUSINESS (Cont.) a. conrinuea... Mr. Nimtz disclosed that he has represented Ms. Violet Barry, an affected property owner, as her attorney for many years and would not participate in the discussion or vote on this item. Mr. Nimtz opened the Public Hearing on Resolution No. 881 for all who would like to be heard. Ms. Sally Arnold asked if she understood catrectly that the purpose of the accuisition was to demolish the buildings and sell the land for development. Mrs. Ko ata responded that, yes, the intent is to create a large parcel of vacant land fot resale. Mr. Daniel Snider, a first -time property owner, explained that he chose to pLuchase property in Monroe Park because he foresaw the potential for that land increasing in value. He asked if his prcperty would now be taken from him at a ce:ttain price so that the city might ccmbine all the properties as a package, tLun them over to a private developer, and reap the speculative profits that he hal anticipated. He asked how the p s worked. Ms. Pfotenhauer responded to Mr. Snider's question by explaining the acquisition process. The property will be appraised and a fair market value determined. A puy chase offer will then be sent to each property owner offering to purchase the probertv at the fair market value. Mr. Snider asked the definition of fair market value and how it is determined. Mrs. Kolata explained that the Commission hires two appraisers to appraise each piem of property. They use two app ches to determine fair market val e: (1) for owner occupied units -4- South Bent edevelcpment Cc mission Reschedule4 Regular Meeting - August 25, 1989 6. NEW BUSVESS (Cont.) a. conr-inuect... 10 lar properties recently sold in the area are used to determine fair et value; (2) for rental units, an me approach is also used, basing the e on the income the unit generates as as the comparable sales. The two aisers work on their appraisal rately, each determining his own ssment of fair market value. Then a er of the Redevelopment staff reviews appraisals to determine if they are istent with each other, writes a ew report, and establishes the fair et value as the average of the two aisals. Ms. Pfotenhauer responded to the other paxt of Mr. Snider's question of whether the Redevelopment Commission will reap the profit he had hoped to realize when they resell the land to a developer. She noted that the fonnmission often loses mo ey in the acquisition disposition process, considering it an investment in th area. Mrs. Kolata noted that the land will be reappraised as cleared land and may not be valued as high as the Commission pays for the total of the individual T)roperties with structures. being no one else who wished to at the Public Hearing, Mr. Nimtz ded the Public Hearing for whatever i the Commission desires to take. Mr. Piasecki assumed the Chair to conduct the vote on Resolution No. 881 because of Mr. Nimtz's conflict of interest as Ms. 's attorney. MM South BenddRedevelopment Comiiission Reschedul Regular Meeting - August 25, 1989 6. NEW "INESS (Cont.) b. cobtinued... C. Up)n a motion by Mr. Combs, seconded by Mr. Piasecki and carried, the Cmmission approved Resolution No. 881 amending the Sa.ith Bend Central Development Area Die elo=nent Plan. Mr. Nimtz voted . Kolata noted that "Attachment All to resolution contained some inaccurate ures and she passed out copies of the rected attachment which contained a t of properties to be acquired and the ces which will be offered for them. explained that Resolution No. 883 horizes the Director of Redevelopment send a Purchase Offer to each property er listed on "Attachment All to the olution for the purchase price listed "Attachment A." She then explained procedure which is outlined in the chase Offer. If the Purchase Offer is . accepted within 30 days, the mission attorney is directed to file a demnation case with the court. Mr. Snider asked if it would hold up the se tlement for the other property owners if he challenged the offer and went ugh condemnation Mrs. Kolata responded that it would not affect any of th§ other settlements. Each transaction isl considered independently. Kolata also explained the relocation 'its. Snider asked how quickly tenants d have to relocate if he accepted the r. Mrs. Kolata responded that nts would have at least a 30 day I Dip M •. M W.W. South Bend I Redevelopment Commission Resdiedule4 Regular Meeting - August 25, 1989 6. C. (Cont.) n ice to vacate and that the Commission wottld probably want the property vacant by winter. Ms Margaret Hires asked how long it ta. Des to close on the accepted purchase offer. Mrs. Kolata responded that closing takes approximately three weeks f the date of acceptance. Ms Hires asked how taxes are handled. Kolata responded that they are pro rated as in any real estate transaction. She also noted that outstanding mortgages arxi liens are subtracted from the p price at the closing before the se�ler is paid. n a motion by Mr. Combs, seconded by Mr. Piasecki and carried, the Commission approved Resolution No. 883, with the co ected "Attachment A", relating to aapisition of property within the South Central Development Area by eminent d in. Mr. Nimtz voted present. Mr Nimtz reassured the property owners th t the staff is willing to work with th n and their tenants to achieve sa isfactory settlements and re ocations. They should feel free to co tact the staff about any concerns they ha:%te. Mr. Snider asked what type of multi-family units will be built on the as led land - low or high income? . Kolata responded that they would prcbably be market rate - not luxury, but no subsidized. It will depend on what prcposals are received when the land is put. up for public bid. Ms. Arnold asked when the Purchase Offers will be sent. Mrs.-Kolata responded that we plan to send them out the week of Auqust 27. -7- • . 883 WIM THE CORRECIED "ATTACliMENT All, RELATING TO ACQUISITION OF PROPERTY Wr= THE SOUrH BEND CENTRAL DEVELOPMENT AREA BY EMINENT DOMAIN 1 South Bendel Redevelopment Commission Reschedule4 Regular Meeting - August 25, 1989 6. NEW BU8INE.SS (Cont.) Mr. Ni*tz resumed the Chair for the remainder of the Imeeting. e. Mrs. Kolata explained that Resolution No. 877A listed certain expenditures that the Ci of South Bend had made in the Rum Village Industrial Park, totalling approximately $1,600,000 of UDAG funds. t resolution authorized a $150,000 reimbursement to the City at that time. This resolution authorizes reimbursement of an additional $350,000. . Kolata noted that the Department of Fr,oncmic Development plans to file an Fip ropriation ordinance to appropriate thit money for two purposes: (1) the 5cxpxisition of the Opelika building, and (2 additional expenses for improvements no of Seitz Park. Up)n a motion by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the camnission approved Resolution No. 884 au orizing reimbursement to the City of Soith Bend for expenditures made within Rum Village Industrial Park. . Kolata explained that Parcel C4 -3 is ated just north of the Jefferson eet parking garage and across from tury Center and the 1st rce/Marriott Center. The Commission ered into a contract with Combined ital /nRco Office Associates several is ago for development of this perty as an office building. The eloper has not met the deadlines in t contract and the Commission has OOZMSSION APPROVED RES0=ON TO THE CITY OF • BEND FOR EXPENDITURES MADE u THE RIM VIIZA(M INDUSTRIAL •.. South BenddIRedevelopment Commission Reschedul Regular Meeting - August 25, 1989 C� e. f. Mr WR am on (Cont.) Iously sent a letter of default to developers, giving them 30 days to the default. They have not done so. � a motion by Mr. Combs, seconded by Piasecki and unanimously carried, the fission rescinded the agreement with pined Capital /KIRCO Office Associates development of Parcel C4 -3 pursuant he terms of the Contract for Sale of Thom Howell asked what type of office ding the developer had proposed. Kolata responded that the original osal was for a 70,000 square foot ding. They later requested to ade it to 131,000 square feet. They nded to secure a major tenant for the ding, but they have not been able to he schedule that was agreed upon. Mrs. Kolata explained that the Commission has received a letter from Osco Drug req,iesting an Extension of Lease from September 10, 1989 to September 15, 1993. This is in compliance with the Lease we have in place with them which was a two year Lease with three optional one year extensions. When they put a new roof on the building, we gave them the option of at least one additional year. by a motion by Mr. Piasecki, seconded Combs and unanimously carried, the ssion approved the Extension of with Osco Drug, Inc. for property ed at 128 S. Michigan Avenue. �!' UIU1 0 G p4 y100 011 $50 CAPIMWIKIRC O OFFICE ASSOCIATES FOR DEVEMPN= OF PARCEL C4 -3 PURSUANT TO THE CONDITIONS OF THE CONTRACT FOR SALE OF LAND 00�1MISSION APPROVED THE EX'T'ENSION OF TEASE: WITH OSOD DRUG, INC. FOR PROPERTY IOCATED AT 128 S. MICHIGAN AVENUE South Bend Redevelopment Commission Rescheduled Regular Meeting - August 25, 1989 7. PROGRESSREPOIII'S Mrs. Kolata reported that the Commission is very pleased with the progress on the Can Am apartments. The leasing office will open on August 28th. They are on schedule for the early October opening of the building which fronts on LaSalle Street. Mrs. Kclata also noted that the AM General office building is progressing rapidly. She noted that groundbreaking on the other East Bank office building will be taking place within the next month. 8. NEXT Ci iMM1SSIVN ML'EEVINCi The nwt Regular Meeting of the Redevelopment Commis ion is scheduled for September 8, 1989, at 10:00 a.m. 9. AAT There being no further business to come before the Commission, Mr. Combs made a motion that the meeting be adjourned. Mr. Pi seconded the motion and the meeting was ad ourned at 9:45 a.m. • • IT -10- 1 D 51 'e fj NEXT COPMISSION MEETING F t. I N kiI lIDklill Ann E. Kolata, Director