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HomeMy WebLinkAboutRM 02-09-90SOUTH BEND REDEVELOPNENT COMMISSION REGULAR MEETING February 9, 1990 1200 County-City Building 10:00 a.m. 227 W. Jefferson Boulevard Presiding O ficer: Ms. Paula Auburn South Bend, Indiana 46601 Vice President 1. Members Present: Ms. Paula N. Auburn, Vice President Mr. Raman J. Piasecki, Secretary Mr. Sandy Combs, Assistant Secretary Mr. Michael Donoho Members t: Mr. F. Jay Nimtz, President Legal 1: Mr. Robert Rosenfeld Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager News 'a: Mr. Don Porter, South Bend Tribune Mr. Thom Howell, U -93, Others: Mr. Carter Wolf, Center City Associates Mr. James Crank Mr. Charlie Clark, Holladay Corporation 2. APPRORAII OF MINUTES a. 0 Mr. .1 V1 ---y 1J . 1J- a motion made by Mr. Piasecki, Ct- ZnSSION APPROVED THE MINUTES ded by Mr. Donoho and unanimously OF THE SPECIAL M=ING OF FRIDAY, ed, the minutes of the Special JANUARY 19, 1990 ng of Friday, January 19, 1990, were a motion by Mr. Donoho, seconded by tombs and unanimously carried, the es of the Regular Meeting of Friday, ry 26, 1990, were approved. -1- (ffilll-CSSIOA •l "K*1214 it 1U11 R. OF i RE9JLAR MM=G 1990 JANUARY 26, South Bend Pedevelcpment Camu ssion Regular Meeting - February 9, 1990 3. APPRCVAI, OF CLAIMS �iij a IM, OX Goverrmient Information Service $ 167.45 Petty Cash Reimbursement 107.51 National Center for Policy Alternatives 21.95 C.D. Putlications 50.00 Executive Program 63.37 General Fund 94.86 Total BLisiness Solutions 35.79 Total = 1990 $ 640.93 GRAND $ 640.93 Upon a i by Mr. ' ComKniss . submitt ordered 9, 1990 4. CONMUNI There w 5. OLD BUS: a. Cam :ion made by Mr. Piasecki, seconded ibs and unanimously carried, the L formally approved the claims January 29 and February 5, 1990 and iecks dated February 2 and February be released. Mrs. Kolata noted that the staff and the new owners of the Penneys Building are finalizing ' the skywalk agreement and should have it ready for Commission approval shortly. The reason for post ning it for so long is that Hathaway, Inc. did not wish to sign an agremient while they were in negotiations to s all the building. The new owners have had copies of the document and there are no major contested issues. Mrs. Kolata asked that the Cc mnission table this item until the next meeting. There were no objections and item 5.a. was -2- C• MSSION APPROVED THE CTAIMS SUEVEETIED JANUARY 29 AND FEBRUARY 5, 1990, AND ORDERED CHECKS nAITEW FEBRUARY 2 AND FEBRUARY 5, 1990 TO BE RELEASED CCH IISSION TABLED ITEM 5.A. UNTIL THE NEXT MEETING South Bend Fedevelopnent Commission Regular Meeting - February 9, 1990 Ms. Auburn noted that New Business items 6.c. and 6.d. are removed from the agenda. The Commission will schedule a Special Meeting next week to consider those items. The Redevelopment Authority was unable to meet on February 8th at 4:00 p.m. t approve the documents needed before the Co7mmiss' n considers its action. 6. a. commission anproyal r ested for R lution No. 912 amrovim an application for real property tax deduction for located at 431 E. Avenue in the South Bend Central Colfax Area. De.velopment Mrs. Kolata noted that this property is at the corner of Colfax and Niles Avenues. It is the location for the new office building under construction by Niles/Colfax Associates. The property is still awned by the Redevelopment Conuission and the petition must be filed by the Commission on behalf of Niles/Colfax Associates. The petitioner is constructing a 26,000, square foot commercial office building with surrounding surface parking on the site. The project will retain a lame area employer and will create ten new permanent, full time jobs the first year with an annual payroll of $260,000 and will maintain 110 jabs with an annual payroll of $2,750,000. The total project cost is estimated to be approximately $31 00,000. Mrs. Kolata also noted that the property is properly zoned for this use. It is within a tax abatement impact area and within a tax incremental financing allocation area. The project is also in a relevelcpment area. She noted that the tax abatement report, z will be filed with the Common -il, includes a three, six, and ten tax abatement schedule. The staff m e.ndation is that the project ive a ten year tax abatement. MIS South Bend development Comission Regular Meeting - February 9, 1990 6. NEW BUSINESS (Cont.) a. cominuea... 17-M UndEr the ten year schedule, taxes on the improved property are estimated to be $1,C74,285. With abatement, taxes are estimated to be $542,512. Therefore, the amount abated would be $531,773. Ms. Auburn noted that, since the Ccnzission awns the property, no taxes are currently being paid on it. Upon a motion by Mr. Donoho, seconded by Mr. piasecki and unanimously carried, the Ccmission approved Resolution No. 912 appioving an application for real property tax deduction for property loc4ted at 431 E. Colfax Avenue in the Sou Bend Central Development Area. Mrs. Kolata explained that Resolution No. 913 is related to the lease purchase revenue bonds being issued by the Redevelopment Authority for various projects in the Downtown, East Bank and Monroe park. part of the Monroe park activity includes acquisition, relocation, and demolition of the property. We have begun that process with Community Develcpanent Block Grant funds and intend to reimburse those funds with bond proceeds when they are available. In order for the bonds to be sold, the Authority must have title to all of the property that they will be spending money on. The resolution has the legal descriptions of all of the property in Monroe park which the Camission owns and which will be improved with bond funds. The resolution transfers these properties to the -4- •• • zi "�OJT alW • 04M • MCI � �i • - I� South Bend Todevelopment Commission Regular Meeting - February 9, 1990 6. NEW BUSINESS (Cont.) b. continued... e. Redevelopment Authority. The Redevelopment Authority must then accept the transfer. The Park Board and the Boaxd of Public Works will also be transferring property to the Authority in s' 'lar resolutions. Upor a motion by Mr. Combs, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 913, a resclution of the South Bend Redevelopment Commission, indicating its in tion to transfer certain real estate to the South Bend Redevelopment Mrs. Folata noted that South Bend Allc cation Area No. 1A is the main redevelopment area, which includes the East Bank and Monroe Park. The Ccxmission has financed a comber of public improvements in the area, mostly through bond issues. In other areas, we have used tax increment finance to rehiburse a unit of goverrmkent for expenditures it has made. This resolution allows the Redevelopment Conmission to take advantage of a recent charge in the law, allowing the direct expenditures of tax incremental financing dollars. Resolution No. 910 authorizes experiditures of $100,000, broken dawn into expenditures of $30,000 for public impr3vements, $45,000 for consultants for acquisition and redevelopment activities, and 25,000 for property management. All of tlese are eligible expenditures under the tax increment law and redevelopment law. -5- •• 1 I • - "• E• • • • - �S • • E SOUTH BEND REDEVELOPN= CONNISSION, I • TO TRANSFER CERMIN REAL ESTATE TO THE SOLTIH BEND REDEVEIOPMENT ALTIHOR South Bend Regular Me 6. NEW BU e. co f. elcp wnt Cammission - February 9, 1990 (Cont.) Mrs. Kolata noted that following Ccnmission approval, there must be a sup lemental appropriation of the $10C,000. We have filed a legal notice in t he South Bend Tribune and the Tri -County News and have scheduled a public hearing on that for February 23rd. It will then require approval by the State Tax Board. Mr. Piasecki asked if the $30,000 was already earmarked for specific izpiovements. Mrs. Kolata responded that it is intended for small improvements such as replacing dead trees. When this resolution is approved there will be a source of funds for such improvements and we will be able to get quotes on the Mrs. Kolata noted that our financial advisor, Springsted Inc., has reviewed our TIF funds and determined that there is $100,000 of tax increment available for these projects without endangering any Of the bond issues. Upon a motion by Mr. Piasecki, seconded by W. Donoho and unanimously carried, the Cmmission approved Resolution No. 910, determining to pay certain expenses incurred for local public improvements in or serving the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) . Mrs. Kolata explained that we would like to hire The Troyer Group to prepare some schematic designs for the lower level, first floor, mezzanine, and second floor of tie Robertson's building. We have ask them to include an atrium concept • 1 � �I•� 11 1 • • MCI -� 1 �/�• � � 1 •� - - �� • - • 1 �• -• �+ ill 1 •• South Bend 1jedevelopment Carrnmission Regular Meeting - February 9, 1990 6. NEW BUSILNFSS (Cont.) f. continued... and some major change to the facade. We hav also asked that they look at the building systems (heating, air conditioning, and plumbing) and put toe ther some cost estimates. Mrs. Kolata noted that the Commission has owned the building for some time and it has been available for sale. There has not been much interest in it to this poi . We think that it is necessary to shcu, how the building could be developed and renovated on a phased basis. We could then use the designs directly or them over to a private developer who coulo put a project together. Mrs. Kolata noted that Troyer's fixed fee proposal is $11,300. This is a lower fee than they would usually charge and Troyer would expect to meet with staff and others who could help them make the best use of their time. Mr. Piasecki asked if they would use their previous study as a resource for thio work. Mrs. Kolata responded that she Owpected that they would. Mr. Dondho asked what the difference woull be between this work and the study they did previously. Mrs. Kolata r nded that the former study addressed whet er the building could structurally sup rt its suggested use as the new 1 ion for the Northern Indiana Hi rival Museum and whether an atrium be created where the escalators tly are. It also addressed the enviromiental condition of the building. This work will produce an actual proposed design for reuse and address issues such as whether it would be possible to heat only the first two floors and how to impl t a phased development. -7- South Bend evelopment Cc mmission Regular Mee ing - February 9, 1990 6. NEW BUSINESS (Cont.) f. continued... 9• Mrs. Kolata noted that the building is a very large building. Several inquiries about it have indicated that there is some interest, but only as a smaller project. This would offer an idea of the feasibility of a phased approach. Mr. Piasecki asked Mr. Clark, as a developer, if it would help to have this type of information available. Mr. Clark responded that having a proposed design for phased use with projected cost estimates would, indeed, make a building like Robertson's more interesting to a Mrs. Kolata noted that this contract and the following one with Daniel Pierotti are contingent upon approval of the direct expenditure of TIF by the State Tax Board. Upon a motion by Mr. Donoho, seconded by Mr. Cmbs and unanimously carried, the Cauvission approved the contract with The Troyer Group for an amount not to exceed $11,300 for services related to the n's building, contingent upon appr1oval of the State Board of Tax Mrs. Kolata noted that Mr. Pierotti pre the Entertairment District study for the Cmmni.ssion. At that time, he sugg�sted that he could provide additional- services. with the direct expenditure of tax incremental financing that is now possible, we will be able to retain him for a twelve month period, beg:Ludng March 1, for a fee of $2,167 per month ($26,004 per year). That fee would include all ordinary reimbursable -8- a• i • V OIN V0 I a• 1 V0114 Di' d' • • • • • • • D «al01� • • •• • all • 1 •• , P •• •••• • I '.••'� South Bend evelopment Commission Regular Mee ing - February 9, 1990 6. NEW BUS114ESS (Cont.) g. conlginuect... The services he will provide include capitalization research, development of fundraising plan, dev lopment of a case statement for fundraising, working on the Entertainment District as a non -profit corporation, and on the development of that corporation's staff, job descriptions, helping to recruit top management, and establishment of an operations budget. He TAould also assist in the selection of an architect, restoration craftsmen, review of drawings, and review of the construction bidding. He would also assist in our establishing an endowment Mrs. Kolata noted that, under the terms of the retainer, he would provide a minimum of twelve visits to South Bend for one or two day work sessions on the project. Travel, lodging, meals, etc., are included in the retainer fee. Extraordinary expenses would include printuig of multiple copies of the resulting documents, expenses related to recz 'tment of top management, duplication of drawings and architectural schematics. etc. Ms. Auburn asked if Mrs. Kolata was ccmfortable that each party understands what the other expects of this contract, 'particularly whether he will be producing the mentioned documents. Mrs. Kolata nded that she was comfortable with the Wtual understanding. We are not ing finished documents, but, rathar, access to his expertise and simi ar documents created with his Ms. kuburn asked Mrs. Kolata to request that Mr. Pierotti make regular reports, perhaps monthly or every two months, to the 13mmission and that he schedule a South Bend evelcpoment Connmission Regular Meeting - February 9, 1990 6. NEW BUSAMS (Cont.) g. conginuea... M14V coqr le of his trips to South Bend to coixcide with regular Comuission meetings in order to brief the Commmissioners per-conally on his progress. Mrs. Kolata resronded that she would do so. Upor a motion by Mr. Cclmbs, seconded by Mr. iasecki and unanimously carried, the Ccnmission approved the contract with Daniel L. Pierotti and Company for the amount of $26,004 for twelve months for sery ices related to the Entertaint District Project, contingent upon approval of the direct expenditure of TIF by the State Boazd. of Tax Commissioners. Mrs. Kolata explained that this contract is for the design, the construction documents, and construction monitoring of the proj eat. It is for a lump stun fee of $11,810. There is also a provision for providing additional services as requested up to a total amount of $2,954 for inspection services, construction monitoring, change orders, etc. Mrs. Kolata noted that the construction of tle walkway is nearly complete. It was m oversight that this contract was not amroved sooner. Mr. adj a motion by Mr. Donoho, seconded by :clubs and unanimously carried, the fission approved the contract with )n- Fisher Associates for services -ed to walkway improvements in the Bank area (a ground level walkway LaSalle Street to the East Race - :ent to The Pointe at St. Joseph.) -10- • • M�1 ICI• • • • 1`• My I AM NZ, 0 W03 ••� •DWI III ID ` -• w• I L1 eiD `• :••.• • •• I IRM Kv L, 1:W COMISSION APPROVED A CONTRACT WITH • Iii- ASSOCIATES FOR aR• « - MATED TO WAIIMY INPRO17EMUS IN 1 EAST BANK AREA • - A GROUND LEVEL WEIMY FROM al TO THE EAST RACE, MCI • THE POINTE AT JOSEPH South Bend Regular Me 6. i. elcpment Commission - February 9, 1990 (Cont.) Mrs. Kolata noted that Billie Dunlap, repTesenting Catering by Billie, Inc., has made a proposal to the Commission for the lease of the rental space in the St. Joseph/Wayne Parking Facility. She is proposing to rent the 1544 square foot re it space and have sole use of the 244 square foot storage area for her catering business. The business, currently loczted in the East Bank, offers ing, a take -out deli, and meals. Ee have an average of six employees day. As Iessee they would complete the distribution of the utilities to the equipment, install six -foot double doors with an exhaust vent in the west wall of the building, and install partitions wi the retail space. The are asking the Commission to put in the concrete floor with necessary drains, partitions segregating retail space one and two, the corridor and storage area partitioning, dropped ceiling and recessed lighting, installation of utilities to the area, and installation of HVAC and sprinklered equipment. These are all items we indicated in the bid specifications that we would provide. They propose to begin their lease on April 1, 1990, for an initial three and one-half year term with two consecutive options to renew, each for one additional year, with a 90 day notice to terminate by either party. The proposed rental rate is as follows: zero for the first six nths, $6.00 /square foot for the first year, $6.50 /square foot for the seco year, and $7.00 square foot for the year, with the rent not to more than 10% per year for each one kear renewal option. -11- PROPOSAL F'• CATERDSTG BY BILE FOR 02TIAL OF PETAIL SPACE IN THE •. E. r. PAR =G South Bend evelopment Commission Regular Meeting - February 9, 1990 6. NEW BUSINESS (Cont.) i. continued... They are also requesting two to three parRing spaces on Wayne Street to be designated as 15 minute parking and that the alley along the west side of the building be designated a loading zone. Mrs. Kolata noted that the Engineering Department has reviewed the proposal and did not see any major problems with meeting the requests. The requested lease rates are lower than market rates and the staff rec vends $7. 0, $7.50, and $8.00 per square foot for the first three years, and not limiting the rental rate increase to 10 %, but tying it to market rate increases. Ms. Dunlap indicated these rents were accdDtable to her. Ms. Dunlap noted that she would like to be located downtown because much of her business is downtown. Mr. Piasecki asked what hours the business would be open. Ms. Dunlap nded that the hours are flexible. She would like to expand them from the present lunch time hours which are 10:30 a.m. to 2:30 p.m., to 6:00 p.m. to include carry out dinner orders. Mrs. Kolata noted that the Commission is under some cost constraints with the funds they planned to use for finishing the retail space. Since the garage is tax exenpt, there is a limit to how much bor4 money can be spent for private use. Mr. olf expressed concern that the 15 min parking area could not be enf . He also stated that he thought all parties using the alley for loading wool I need to work out access that is mu ly agreeable. Ms. Dunlap asked if the Commission could make some first floor parking spaces in the garage available for her business. Mrs. Kolata responded that she could look into that possibility. Dian South Bend evelopment Commission Regular Meeting - February 9, 1990 6. NEW BUSINESS (Cont.) i. condinued... The Comission did not take formal action COMMISSION REQUESTED THAT THE on the proposal but indicated their STAFF WORK WITH MS. DUNLAP TO support for it and asked the staff to RESOLVE PARING AND RENT ISSUES work with Ms. Dunlap to resolve the AND TO CREATE THE SPECIFICATIONS outstanding issues and to create the FOR FINISHING THE RETAIL SPACE specifications for fininching the space. This will come back to the Connnission at a later date. j. Conrission aprwaval recruested for Drorosal and loan in connection with the Rental Rehab Program in accordance with the recamyendation from the Bureau of Ho Name Contractor Proposal Loan Ellis Howell B & B Construction $13,210.00 $6,705.00 (public) 515 N. Harrison $6,705.00 (private) Mrs. Kolata noted that the 515 N. Harrison property includes two units. The proposal includes a $1204.88 contingency. The work to be done includes painting, new gutters, reroofuig' interior work, window repair, new Pxywall, cabinets, etc. Upon a motion by Mr. Doncho, seconded by COMMISSION APPROVED THE PROPOSAL Mr. Piasecki and unanimously carried, the AND IRAN IN CONNECTION WITH THE Comission approved the proposal and loan RENTAL REHAB PROGRAM FOR PROPERTY in nnection with the Rental Rehab LOCATED AT 515 N. HARRISON Progrwn for property located at 515 N. 01051110*-W' Mrs. Ko: approva Board o. between Authori was axon xta reported that we received written and notification from the State Tax Ccmissioners that the lease `he Ccamission and the Redevelopment ( related to the 1990 TIF Bond issue 7ved by the State Board of Tax )hers on February 1st. N9913 1!� z �*Cm C R. *.4 W"). "a4 South Bend Regular Me 7. 8. a elop iient Cc miission - February 9, 1990 (Cont.) Mrs. Ko ata also reported that the local public learing on the Studebaker Bond issue has beer, set for 11:00 a.m. on February 23rd at Century Center. Mr. Cror k asked for an update on the West Washington project, particularly relating to intended acquisition and demolition. Mrs. Kolata Explaixied that letters have been sent notifying residents of the neighborhood of the public hearing to be held at 10:00 a.m. on February 23rd. The public hearing will be on Resolution No. 908 which incorporates the Near W tside Comprehensive Plan into the West W n Plan and adds properties to the acquisition list. That resolution is public information and available to Mr. Cronk. After the public hearing and approval of Resolution No. 908, the staff will be sending purdbase offers and starting the acquisi ion process. There w'11 be a Special Meeting of the Commiss'on at 10:00 a.m. on Friday, February 16, 199 . The next Regular Meeting of the Commission is scheduled for Friday, February 23, 1990, at 10:00 a.m. There being no further business to come before tle Commission, Mr. Donoho made a motion t the meeting be adjourned. Mr. Combs se3onded the motion and the meeting was adjourn at 11:12 a.m. L4� Paula N. N. Auburn, Vice President -14- LI1.►.4 1001 4141 9 z 0 41MMMI AndE. Kolata, Director