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HomeMy WebLinkAboutRM 04-20-90April 20, 1' 10:00 a.m. Presiding O 1. ROLL CA Members Ms. Paula Auburn Vice President Members t: Legal l: Redevelc pment Staff: Bureau of Housing Staff: News 'a: Others: 2. APPRO OF MINUTES 3. 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Ms. Paula N. Auburn, Vice President Mr. Roman J. Piasecki, Secretary Mr. Sandy Combs, Assistant Secretary Mr. Michael Donoho Mr. F. Jay Nimtz, President Mr. Robert Rosenfeld Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Ms. Hedy Robinson, Economic Dev. Specialist Mr. Ted Leverman, Rental Rehab Specialist Mr. Don Porter, South Bend Tribune Mr. Thom Howell, U -93 Mr. William Ruminski, Michiana Business Mag. Ms. Rebecca Neiswender, Center City Associates Mr. Lee Slavinskas, South Bend Common Council Upon a motion made by Mr. Piasecki, seconded by Mr. Doncho and unanimously carried, the minutes of the Rescheduled Regular Meeting of Friday, April 6, 1990, were approved. a• I 1 • • • • • 1 �Ii� i Century Center $ 45.00 General Fund (Postage) 126.01 Petroleum Traders 24.46 Tri-Courty News 16.83 Urban land Institute 97.00 -1- South Bend evelopment Commission Rescheduled Regular Meeting - April 20, 1990 3. APPROVAL OF CLAIMS (Cont.) ADNIIN 1990 continued... Institute of Municipal Parking Community Ccmmunity Resource Center Indianarolis Newspapers, Inc. Petty Total Mmin GRAND TCTAL 1990 4. 5. 6. Upon a irotion made by Mr. Combs, seconded by Mr. Piassecki and unanimously carried, the Commission formally approved the claims submitted April 9 and April 16, 1990, and ordered checks dated April 12 and April 20, 1990 to be released. There were no communications. There wals no old business. a. Mrs. Kolata explained that Resolution No. 927 makes a technical amendment to our pledge resolution for the TIF bond. The only change is that Resolution No. 927 a the word "second" to state that we will levy taxes in the second year if we do r of have enough funds in our account by P ugust 1 to make the lease payment. Baker & Daniels, our bond counsel, felt that this was important to add because of the timing of the sale of this bond. We still plan on TIF funds to make the lease payments and don't expect to levy taxes for a payments. -2- 36.00 16.50 101.12 88.81 $ 551.73 $ 551.73 •• r • • 14 ►• . N • :4111 M DIM is •• 1 ••Bull • THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Fodevelopment Commission Rescheduled pkqular Meeting - April 20, 1990 6. NEW BUSINESS (Cont.) a. containuea... Upor. a motion by Mr. Donoho, seconded by Mr. Combs and unanimously carried, the Comission approved Resolution No. 927 amending its Resolution No. 915 adopted February 16, 1990. Ms. Auburn F ced that there are two additional 'tto be added to the agenda as items 6.h. i. b. C. Mrs. Kolata explained that the Official Statement is an attachment to this resolution. The Official Statement sets the bid opening for the Studebaker Corridor bond issue for May 15, 1990, at 12: CO noon in the Office of the Mayor. It includes all of the provisions of the boric, resolution approved at the April 6th meeting and provides the general inf rmation bidders require. Upon a motion by Mr. Piasecki, seconded by Fir. Doncho and unanimously carried, the Commission approved Resolution No. 928 approving an Official Statement Relating to the Issuance of the City of Sou Bend Redevelopment District Bonds of 990 and Authorizing the distribution -3- COMMISSION APPROVED RESOLUTION NO. 927 AMENDING ITS RESOLUTION NO. 915 ADOPTED FEBRUARY 16, 1990 COMMISSION APPROVED RESOLUTION NO. 928 APPROVING AN OFFICIAL STATEMENT RELATING TO THE ISSUANCE OF THE CITY OF SOUTH BEND REDEVELOPMENT DISTRICT BONDS OF 1990 AND AUTHORIZING THE DISTRIBUTION THEREOF South Bend edevelopment Comiiission Rescheduled IRegular Meeting - April 20, 1990 6. NEW BUSINESS (Cont.) c. conuinuea... Kolata asked that this item be Ms. Auburn asked if there was any objection to this item being tabled. r1heze was no objection and item 6.c. was tabled. Mrs. Kolata noted that Karl Schramm, developer of the condominium project to be huilt on this property was not able to be present at this meeting. Ms. Robinson read the staff report regarding the abatement. The petitioner, Karl and Patricia Schramm, propose to construct fourteen two bedroom condominiums for a total project cost of $55q,000. The property is properly zoned for the proposed use. The property is located in an area designated by the South Bend Coimon Council as a Tax Abatement Impact Ar . It is also located in a Tax Incymmt Financing Allocation Area. The project qualifies for three years of real property tax abatement under the tax abatement ordinance as a multi - family dwe lina. It is not known how many jobs will be created, but they estimate that the project will employ over 100 construction workers over a six month period. It i 3 estimated that taxes at this 1 ion, after improvements are made, woul I be $88,485. With abatement taxes are timated to be $29,790. Therefore, the umunt to be abated is estimated to be $08,695. -4- South Bend edevelopment Commission Rescheduled egular Meeting - April 20, 1990 6. NEW BUSINESS (Cont.) d. continued... Ms. Robinson noted that the property is still owned by the Redevelopment ComLission, whose officers signed the tax abatement application for the Schramms. Mrs. Kolata noted that the Sck=mns have 'tted their plans for the project for appiaval from the State and will close on the property as soon as they receive that Mrs. Kolata asked if the petition listed the units as condominiums. She understood that they would be built as apaitments and converted to condos. Mrs Robinson responded that the petition listed them as condos. Ms. Auburn, noting that the taxes to be pai were estimated at nearly $30,000, asked what the current taxes are for the property. Ms. Robinson responded that since the Redevelopment Commission owned the property, no taxes are paid on the property at the present time. UPOI Mr. Comm app: of : prq the Ms. r1he to c to t the a motion by Mr. Combs, seconded by - iasecki and unanimously carried, the ssion approved Resolution No. 930 wing an application for three years al property tax deduction for rty located at 109 N. Hill Street in outh Bend Central Development Area. on read the staff report the tax abatement application. tioner, 3-G Properties, proposes rust a 6,100 square foot addition existing building to allow for nsion of their metal hose -5- South Bend F4edevelopment Commission Rescheduled Pegular Meeting - April 20, 1990 6. NEW BUSIIESS (Cont.) ���Oro .t.MI.IO[4:Q fabricating business. The project will create two new permanent full time jobs within the first year with an annual payroll of $35,000 and will maintain fourteen existing permanent full time and one permanent part time job with an annual payroll of $414, 197. The total project cost is estimated to be $180,000. The property is properly zoned for the proposed use. The property is located in an area designated as a Tax Abatement LTpact Area by the South Bend Common Council. It is also located in a Tax Increment Financing Allocation Area. The petitioner qualifies for six years of real. property tax abatement under the tax abatement ordinance as an industrial devE.1opment in the Urban Enterprise Zone and a blighted redevelopment area. Wit±Lout abatement the taxes are estimated to le $57,918. With abatement the taxes are estimated to be $23,940. Therefore, the total amount to be abated over the six year period is estimated to be $33,978. Mrs. Kolata noted that the business at this location is River Bend Hose. She introduced Mr. Lee Slavinskas, a partner in the business, who described the nature of the expansion. Mr. Slavinskas noted that the original building was built four years ago. The business has grown and they are presently 1 ing 20,000 sft of space across the street from the 1111 S. Main location for both manufacturing and warehousing space. That has been very inconvenient. Thel intend to add on to the present building to bring all of their manufacturing back under one roof and con inue to lease 10,000 sft for warehousincr across the street. South Bend Fledevelopment Commission Rescheduled Pegular Meeting - April 20, 1990 6. NEW BUSV-TESS (Cont.) e. cominuea... a Mr. Slavinskas noted that they have already added one of the two new employees which was projected on the application and will probably hire two more. Mr. Slavinskas mentioned that they wor with Employment Training Services to f' new employees and have hired several peo le considered difficult to place, including minorities, handicapped, and ex -convicts. They do not currently employ any residents of the Urban Enterprise Zone, but make a conscious effort to hire residents of the Zone when the can. Mr. Slavinskas also noted that much of their new business is from outside the South Bend area. Mr. Piasecki asked if Mr. Slavinskas had sought tax abatement when they started their business four years ago. Mr. Slavinskas responded that he had not. Mr. Slavinskas noted for the record that he 's a member of the Common Council and will have a conflict of interest when the abatement comes before the Council on April 23rd. He is in the process of filing the necessary papers and, except for a brief presentation, he does not intend to participate in the discussion or -vote on the petition. Upon a motion by Mr. Piasecki, seconded by Vt. Donoho and unanimously carried, the Commission approved Resolution No. 931 approving an application for six yeaTs of real property tax deduction for p located at 1111 S. Main Street in a Studebaker Corridor Development -7- • i r • . WN Zkolvj M OR • • • •. •. r r • ••• r•• r •. i� . South Bend edevelcpment Commission Rescheduled egular Meeting - April 20, 1990 6. NEW BUSINESS (Cont.) g. con'41nuect... f. Leo and Cleora Kelsch Leo Kelsch $10,515.00* $5,332.00 (public) 617-617 1/2 N. Cushing $5,332.00 (private) $777.63 contingency Mrs. Kolata noted that under the Rental Rehab Program, the loan is forgiven at the rate of 10% per year for ten years p iding the owner maintains the property up to code, maintains insurance on a property, pays the taxes and rents 70% of the units to low and moderate in tenants. Mrs. Kolata noted that this property has two units. Upon a motion by Mr. Combs, seconded by COM USSION APPROVED THE PROPOSAL Mr. Donoho and unanimously carried, the AND IRAN IN CONNECTION WITH THE Ccm#ssion approved the proposal and loan RENTAL REHAB PROGRAM FOR PROPERTY in nnection with the Rental Rehab LOCATED AT 617 -617 1/2 N. CUSHING Pr for property located at 617 -617 1/2 Mrs. Kolata explained that all of the property that is going to be improved with funds from the TIF bond must be owned by the Redevelopment Authority. The Commission previously authorized the transfer of some property in Monroe Park to the Authority for this purpose. This resolution authorizes the transfer of the north part of the Emporium parking lot, a small strip of land along the west side of the riverbank near the Jefferson Street bridge where there will be some ligbting improvements, and a portion of land along the riverbank in Block Six where we will be doing lighting South Bend evelopment Comission Rescheduled egular Meeting - April 20, 1990 6. NEW BUSV4FSS (Cont.) g. conglnuea... h. Upor a motion by Mr. Donoho, seconded by Mr. Combs and unanimously carried, the Ccamission approved Resolution No. 932, a resclution of the South Bend Redevelopment Commission indicating its in tion to transfer certain real estate to the South Bend Redevelopment Autt ority. Mrs. Kolata noted that this request concerns parcels C9 -1 and C9 -2 which are the parking lots north of Inwoods and at the corner of Main and Western Streets. At the March 9th meeting we gave notice of cancellation of lease for these lots because we were aware of a developer who was interested in purchasing them for office development. Col ell Banker and Leader Properties have been in ongoing negotiations with Executive Properties, the prospective buyer. They are asking the Commission to appyove a 10% commission to be paid on the sale of that real estate, based upon the sales price. The commission would be eW41y divided between the two real est#e coapanies. Ms. Auburn noted that we have previously discussed using real estate agents to sell property and have indicated a willingness to pay the real estate Upor a motion Mr. Donoho, seconded by Mr. Conts and unanimously carried, the Conmission approved the request by Col ell Banker Real Estate in their let of April 20, 1990 and authorized paymant of a 10% real estate ccamission to ldwell Banker Real Estate and John LeadRr Properties for parcels C9 -1 and C9 -2 if Executive Properties submits an a table proposal for the properties CODMvISSION APPROVED RESOLUTION NO. 932 INDICATING THE COMMISSION'S INTENTION TO TRANSFER CEaAIN REAL ESTATE TO THE SOUTH BEND REDEVELOPMENT AUTHORITY 0 owl • •• �� ■� ICI • •'. �►� ..• WX t :' .. • ■ ■a • IIIINN. I W • South Bend edevelcpment Commission Rescheduled Regular Meeting - April 20, 1990 6. NEW BUS= S (Cont.) h. continued... i. and enters into a Contract for Sale of Land within sixty days. Payment of the real estate commission will be made at cl incf. Mrs. Kolata explained that the contract with Cole Associates is for master planning services for the Airport Economic Development Area. The scope of ices includes: 1) preliminary analysis of the area where we are proyosing to do future projects; 2) preraration of a base map, conceptual landuse plan, transportation analysis, transportation system improvements, drainage analysis, sewer and water system analysis, and cost estimates for the entire project; 3) preparation of a rencering of the development which we will be able to use to market the area; 4) iting development guidelines for the ar 5) preparation of a promotional boo et to use as a marketing tool. The breakdown for the costs for the ices to be provided is: nary studies $14,500 Plan 32,600 ng 5,000 anent Guidelines 2,500 oral Material 9,700 $64,300 Mrs. Kolata noted that final printing costs for the promotional material are not included in the contract. It should be iiore economical for us to have the material printed and so we will pay for tha# directly. Mr. Piasecki asked if similar contracts are ever competitively bid. Mrs. Kolata rided that they are not because -10- CONTRACT FOR SALE OF LAND WITHIN SIXTY DAYS South Bend Rescheduled 6. NEW BUS: i. con pro be var fir. In was dev we 7. 8. a orient Commission Meeting - April 20, 1990 (font. ) .ssional services are not required to utoetitively bid. We work with a ty of architectural and engineering and try to spread the work around. Lis particular case, Cole Associates Sready working with a private .oper on a project for this area, so ►ped to realize some economies since Associates had done some preliminary in that area. Ms. Auburn asked if there was a ccapletion date for the contract. Mrs. Kolata responded that they expect to be ccuplete within a couple of months, but that the contract does not give a combletion date. Ms. Auburn asked Mrs. Kolata to request a conl6letion schedule from Cole Associates. Upon a motion by Mr. Combs, seconded by COMMISSION APPROVED THE CONTRACT Mr. Donoho and unanimously carried, the FOR SERVICES WITH COLE ASSOCIATES Coimdssion approved the contract for services with Cole Associates as outlined in their letter of April 19, 1990. Mrs. Kolata reported that the closing for the 1990 Ierse Purchase bond is scheduled for April 2nd. The next Regular Meeting of the Commission is schedulod for May 11, 1990 at 10:00 a.m. There being no further business to come before the Commission, Mr. Combs made a motion that the meeting be adjourned. Mr. Donoho seconded the motion and the meeting was adjourned at 10:50 a.m. Paula . Auburn, Vice President -11- NEXT C g4ISSION MEETING F3,10,11KIRRINRA Ary E. Kolata, Director