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HomeMy WebLinkAboutRM 09-28-90September 2f 10:00 a.m. Presiding Oi 1. ROLL CA] Members Members Legal Cc 2. Bureau News Others: Ms. SOUTH SEND REDEVELOPMENT C WMSSION REGUTAR MEETING 1990 1200 County -City Building 227 W. Jefferson Boulevard ficer: Ms. Paula N. Auburn South Bend, Indiana 46601 Vice President Present: Ms. Paula N. Auburn, Vice President Mr. Raman J. Piasecki, Secretary Mr. Sandy Combs, Assistant Secretary Mr. Michael Donoho Absent: Mr. F. Jay Nimtz, President Ms. Jenny Pitts- Manier Staff: Mrs. Ann Kolata, Director Mrs. Esther Deak, Secretary Ms. Hedy Robinson, Economic Dev. Specialist Mr. K. C. Pocius, Economic Dev. Specialist Mr. Larry Koepfle, Economic Dev. Specialist Mr. John McDonaugh, Intern Ms. Jill Cooper, Intern Housing Staff: Mr. Ted Leverman, Asst. Director Mr. Thom Howell, U -93 Mr. Mr. Mr. Mr. Mr. Don Porter, South Bend Tribune David Scott, Ch. 28 Carl Hargrove, WSJV- -TV Ed Reshik, ATEC Environmental Consultants Matt Stokes, ATEC Environmental Consultants Mr. Carter Wolf, Center City Associates Mr. Steve Luecke, South Bend Common Council announced that the Executive Session held prior to the meeting would be following adjournment of the Regular Meeting. Upon a mntion made by Mr. Piasecki, seconded by Mr. Doncho and unanimously carried, the minutes of the Regular Meeting of Friday, September 14, 1990, were approved. -1- •• i • . • •.• DID u • is • �r i� � • - � .. South Bend I Zedevelopment Cotrnmi.ssion Regular Meeting - September 28, 1990 3. APPRO OF CLAIMS 4. 5. Law Ass iates South 13end Tribune Americmi Economic Development Council American Planning Association Petty aLsh Reimbursement PDH Off ce Products St. J ph County Recorder Corporate General Fund Forrest Peggy Lauver, Ralph St. Joseph County Treasurer Williams, Mable Petty a Reimbursement Lewis, I Zuth Harris, Mable Harris, Mable Total S ebaker G. 0. Bond GRAND Upon a motion made by Mr. Donoho, seconded by Mr. Piasecki and unanimously can-ied, the Comission formally approved the claims submitted September 17 and Sep 24, 1990 and ordered checks da September 21 and September 28, 1990 tO be released. There w$re no cc mmunications. a. -2- 175.00 20.48 415.00 75.00 10.60 3.49 42.00 $ 741.57 80,000.00 410.00 10,750.00 1,526.99 5,518.21 10.00 1,150.00 4,300.00 950.00 $ 104,616.09 $ 105,357.66 COMMISSION APPROVED CLAIMS SUITED SEPTEMBER 17 AND SEPIEMBER 24, 1990 AND ORDERED CHEC ES DATED SEPTEMBER 21 AND SEPIEMBER 28, 1990 TO BE RFT EASED THERE WERE NO COMMUNICATIONS South Bend edevelopment Commission Regular Mee ing - September 28, 1990 5. OLD BUSUMM (Cont.) a. conttnuect... Ms. Robinson read the tax abatement re rt. The petitioner is Nimet Intistries, the property address is 2424 N. oundation Dr. The petitioner proposes to expand its present facilities for the use of additional manufacturing spa . The project will create 10 new permnent jobs within the first year, rep esenting an annual payroll of $14i,000. The project will maintain 60 fu] time jobs and 3 part time jobs with an =ual payroll of $1,313,700. The totil project cost is estimated at $253,000. The property is properly zoned for the proposed use. The property is not located in an area designated as a tax aba ement impact area and is located in a tax incremental financing allocation area. On $225, 000 worth of equipment, the estImated personal property taxes to be paid over a five year period would be $18 281. With abatement, the taxes are est mated at $3,822. Therefore, the amo t to be abated over a five year per �d is estimated at $14,459. ,000 of real property and three of abatement, taxes are estimated �12,4 831. With abatement they would be . Therefore, the amount to be over a three year period is . Mrs Kolata said Mr. Brian Sauers of Ban es & Thornburg is here representing the petitioner. Mr. Brian Sauers introduced himself and stated that Nimet Industries is in the indwstrial coating business and in order to maintain current customers, expansion is recessary. He asked for the Red velopment Commission to recommend to the I City Council that they approve this -3- South Bend evelopment Commission Regular Meeting - September 28, 1990 5. OLD BUSUESS (Cont.) 6. a. conrinuea... a. Mrs I Kolata stated that the project is in the Airport Economic Development Area whi is a tax increment finance area. To clarify on the real property tax Red velcument Commission abateTmt, the addition itself does not mee the minimum square footage standard for the property tax abatement but the pro ject as a whole surpasses the recparement. We have talked with Steve lue,,ke who is Chairman of the Human R urces and Economic Development Cam 'ttee of the Common Council who will the final determination as to whe er or not the real and personal property tax abatement should be granted. You are sinply allowing it within the tax increment finance area. The Council would make the final debnmination on the abatement. Mr. Piasecki asked if Nimet Industries has received abatement before. Mrs Kolata stated that had not received abatement previously. Ms. 10,000 Robinson stated that the entire pro eat they are undertaking is in excess of square feet. a motion made by Mr. Piasecki and ded by Mr. Donoho and unanimously ed, the Commission approved ution No. 948 approving an cation for real and personal rty tax abatement for Nimet tries located at 2424 N. Foundation in the Airport Economic Development -4- Ma Id 01 i •r0a • •1 South Bend edevelopment Commission Regular Mee ing - September 28, 1990 6. NEW BUSnIESS (Cont.) a. contnnued... Bend Heritage SB Heritage Corner - LaPorte $49,360.00 contingency JosOrph MacHatton Joseph MacHatton 413 Jackson *' ludes $2,210.00 contingency Saim iel Wright Samuel Wright 509 Howard $1,445.00 contingency $585,570.00* $112,500.00 (public) $423,710.00 (private) $ 51,700.00* $ 22,500.00 (public) $ 29,200.00 (private) $ 19,860.00* $ 8,500.00 (public) $ 11,360.00 (private) Mrs Kolata stated that there are three Ren Rehab applications. The first is an application frarn South Bend Heritage tha includes 15 residential units in 7 str.ictures near the intersection of Colfax and LaPorte. The area is called His oric Dunbar Corner. South Bend Her tage would be purchasing the entire cor ier and renovating all of the pro ies. They are requesting a Rental Rehab loan in the amount of $112,500. We are also reaming acceptance of South Berxi Heritage as the general contractor for the project. Their proposal is to do the renovation for $585,570. A variety of private sources have been put together to bring $423,710 of private financing to the project. That includes a loan from Stwidard Federal Bank, a grant from the Affordable Housing Program and syrx�ication of tax credits to enable this pro ect to occur. Mr.Luecke stated that this is a project th# South Bend Heritage has been working -5- South Bend edevelcpment commission Regular Mee ing - September 28, 1990 6. NEW BUSVMS (Cont.) a. conrinuea... on or a long time. The Rental Rehab is the program that allows the development of low income affordable housing and guarantees that affordability for a 10 y period. Historic Preservation tax cr 'ts will be used for part of the fin4mcing. The houses will see sul4tantial changes on the outside. Mr. IDonoho asked if they were rented Mr. Luecke said 3 of the houses are currently vacant. There are 17 units in the structures. There will be 15 units whai we are done. Two of the building were burn outs. Mr. Mr. Mr. the pro] Piasecki asked about the letter from Millikan. Luecke stated that Mr. Millikan is current owner of the property. The )erties will be purchased from him. Mrs Kolata said the the Rental Rehab program requires South Bend Heritage to own the property. This has to be coupleted. by the end of September. Mr. leverman said that we have to get the app ication in by the end of the federal fi year so that they can have it for the x production numbers. We received a grai it last May which was in part due to thio project. Mr. Luecke said that they were granted tax credits by the Indiana Housing Finmce Authority. That was part of what has prolonged the process in getting that app ication approved. Now that credits are in hand, syndicators are calling us instead of us having to call them. South Bend fZedevelcpment Commission Regular Mee ing - September 28, 1990 6. NEW BUSVESS (Cont.) a. conranuea... Mr. Donoho asked if it was possible to appmve a loan for property that South Beni Heritage doesn't own yet? Mrs Kolata said that we have done that in the past where part of it has been buyLng out a land contract. If the sale wenB not to go through and if the rest of the financing were not to come in place, we cn't draw down any money. Mrs Kolata asked if we are only to forclive 1/15 of the Rental Rehab loan ev year over the 15 years or are we going to forgive 1/10 of the loan for the 1st 10 years. Mr. Wecke said that because of the tax 't the federal dollars get treated in a different way as they are in effect lowied at the applicable federal rate for the 15 years. We are requesting that thi be a no payment loan and the int xest would accrue. At the end of 15 y the loan will be forgiven if South Ben I Heritage meets all of the recOirements of the Rental Rehab Upon a motion made by Mr. Combs seconded by Mr. Donoho and unanimously carried, the Commission approved the Rental Rehab of $112,500 and awarded the contract for the construction to South Bend Her tage in the amount of $585,570 for the Historic Dunbar Corner project. Mr. leverman asked that the Rental Rehab application for 413 S. Jackson be tabled until the next meeting. Ms. Auburn asked if there were objections to tabling this application. Hearing norm!, the Rental Rehab application for 413 S. Jackson was tabled until October 12, 1990. -7- •• 7 I 7 I • • ..'• �� 1 :+ r• - • • • / '�@i� 1 • •' 1 ICI' IP 1 • • JIM •- �' •- LO-eJ South Bend pedevelopment Commission Regular Mee ing - September 28, 1990 6. NEW BUS=S (Cont.) a. contnnuea... 10 Mrs Kolata said Samuel Wright is the proDerty owner at 509 Howard. The bui ding contains one unit. We are reqaestirxj the Coimmission's approval for an ' ?8,500 Rental Rehab loan 0% for 10 y . The loan forgiveable at the rate of 0% a year if the unit is made ava -lable to low and moderate income pew le and kept in good condition. We are al recommending that Mr. Wright be a ed the contract for the renovation in a amount of $19,860. Mrs Kolata asked Ted if this was a new Mr. Leverman said this is his first Rental Rehab project although he is in the construction business. Ms. Jenny Pitts Manier stated that she had some questions about the people holdiM the mortgage on the property and wanted it clarified. Mr. Leverman said Mr. Wright has the mortgage with the Busby's and he's bon.,owinq rehab funds from the bank. Kolata suggested to Mr. Leverman the title work should be checked to taking action on this Ms. Auburn asked if there were objections to tabling this application. Hearing none, the Rental Rehab application for 509 Howard was tabled until October 12, 1990. Mrs. Kolata introduced two representatives frain ATEC, Ed Peshik and Matt. Stokes who will make a presentation regarding the Interim Phase I Environmental Assessment of the Studebaker Corridor. -8- South Bend edevelopment Commission Regular Meeting - September 28, 1990 6. NEW BUSUMS (Cont.) Mr. Stokes explained that ATEC was hired by e South Bend Redevelopment ComAssion to perform an environmental stLxly in the Studebaker Corridor in South The purpose of the study was for due diligence reasons for a real estate trwisaction. He gave a brief overview of the work that was performed. It included a records search, site examination and r of how properties were used over the years. A copy of the Executive Sumtary is attached to these minutes. Mrs Kolata stated that ATEC was somewhat limited in terms of what a normal Phase I si assessment includes. That's because we 'd not ask for or get access to the properties which are almost all privately ATEC has given us a very detailed report of what they have studied so far and said there are certain properties, primarily commercial, where they would like to conduct further investigation and tests. They have not completed a normal Phase I assessment because they haven't been able to go inside the properties up to this point. At the next meeting we to have some proposals from ATEC for additional investigation and testing. Ms. Auburn asked if any of the sites need no ftirther study. Mrs Kolata responded that some sites will not need further investigation until their are vacant. In residential E:oturesthere will be some asbestos me tanks in basements. We don't anything major. Mr. Piasecki asked if the findings are Mr. Stokes said they are preliminary in the sense that it was the initial investigation to determine what work may be necessary. The interim report is corrolete at this point. South Bend edevelopment Con - mission Regular Mee ing - September 28, 1990 6. NEW BUMESS (Cont.) b. continued... C. Mr. Stokes said the intent of the study is o identify potential envirornmental co . Mrs Kolata said that we intend to buy this property and we need to know what its current condition is and that's what we've been trying to find out through the The Ireport was accepted by the Red velonTent Commission. Mrs Kolata said we had expected to bring the proposals from ATEC forward today. We Are requesting this item to be continued until the next meeting. Ms. Aubtnm asked if there were any objections to ntinuing this item. Hearing none, the proposals from ATEC Envirorm ental Consultants were tabled until October 12, 1990. Mrs Kolata said Resolution No. 962 adds the remainder of properties that we in to acquire in the Studebaker Co idor to the acquisition list. This adds a number of properties within the as potential properties to be acqLired. It does not authorize sending purchase offers. We want to set October 26th as a public hearing on this Resclution and we will publish the appropriate legal notice and send a copy of the notice to the affected property owners and to the neighborhood armcciations who registered with us. -10- • ►: s AMR 111010 South Bend edevelcpment Commission Regular Mee - September 28, 1990 6. NEW BUSINESS (Cont.) d. continued... e. f. Ms. Auburn announced that the Public heai7irxj on Resolution No. 962 will occur at our regular Redevelopment meeting on October 26th and directed the staff to prepare and send out the necessary legal F Kolata said we have 4 counter- offers we would like the Commission to ider. 1) Parcel 4 -18 at 1134 S. Franklin. The owner is Carol Powell, and we would like the Comumi.ssion to accept the co ter -offer of $9,500. 2) 1 8 -10 at 1120 S. Lafayette. The own are Frank and Charlene Fuller and the counter-offer is $7,000. 3) Parcel 4 -47 at 1143 Lafayette. The owTuBr is Mr. Rogers and he accepted our offer of $7,250. 4) Parcel 5 -17 at 1201 Lafayette. The owner is Mr. Rogers and he made a couiter-offer of $6,250. Upon a motion made by Mr. Piasecki seconded by Mr. Combs and unanimously ied, the Comnnission approved the pur of Parcel 4 -18 for $9,500; Parcml 8 -10 for $7,000; parcel 5 -17 for $6, 50 which were counter-offers and to app a the Rogers acceptance of our Off of $7,250 for parcel 4 -47. Mrs Kolata said that at our last meeting the Commission accepted a counter-offer - of 11,000 from Bobby and Deborah Neutdll. That was an error on our part. -11- COMMISSION APPROVED THE PURCHASE OF PARCEL 4 -18 FOR $9,500; PARCEL 8 -10 FOR $7,000; PARCEL 5 -17 FOR $6,250 WHICH WERE COUNTER- OFFERS AND TO APPROVE THE ACCEPTANCE OF OUR OFFER OF $7,250 for parcel 4 -47. South Bend edevelopment Ccarmaission Regular Mee ing - September 28, 1990 6. NEW BUSU S (Cont.) f. continued... a h. counter -offer was $11,300. We like the Commission to accept the r -offer of $11,300 to correct this Upon a motion made by Mr. Donoho seconded by fir. Combs and unanimously carried, the C=mission accepted the corrected ter -offer of $11,300 for Parcel W38-10. Mrs Kolata said we received a co ter -offer for Parcel M4 -15 in Monroe Park at 618 S. Columbia. The property Own has made a counter -offer of $2,000 and we recommend accepting this. Upon a motion made by Mr. Combs seconded by Mr. Donoho and unanimously carried, the Commission accepted a counter-offer on Parcel M4 -15 of $2,000. Mrs Kolata said this is the LTV headquarters building that was built by Nil /Washington partnership. Inspection of the property has been done and Nil /Washington L.P. has met the terms of the Contract for Sale of Land. The Comstruction is complete and we reconanend approving the Certificate of Completion. Mr. IDonoho asked if this is the property that had the residential tie to it. Mrs Kolata said that it was. The ential project is in progress. We just gotten an update from Karl mm regarding the project. We -12- CONMISSION APPROVED THE •• " �I • �I' • 81' • I • • • PARCEL • IN THE WEST VU0=GI0N-0WIN DEVELOPMENT WW81,19KH - • �• • ••• •- «D • - IOI South Bend evelopiuent Commission Regular Mee ing - September 28, 1990 6. NEW BUSTNESS (Cont.) h. continued... i. J• relcosed Holladay Corp. from that portion and we put it in a totally new contract with Mr. Schramm. Mrs Kolata said there was nothing in Nil /Washington L.P. Is contract about the residential property. It was in their bid but they never had a contractual obl gation to build the residential Upon a motion made by Mr. Donoho seconded by Mr. Piasecki and unanimously carried, the Commission approved a Certificate of letion for Niles/Washington L.P. for parqels E3 -3, E3 -4, E9 -11, E9 -14 & E9 -15 in #he South Bend Central Development Mrs Kolata said that a month ago we appointed 7 of the 9 members of the Committee. There were 2 appointments that. weren't made. One is for Greg Pal who is the Acting Building Commissioner. We have decided to appoint Mr. Pal for the interim period until a new Building 'ssioner is designated. The second is for myself and I am to be on the committee instead of Jon Hunt. Upon a motion made by Mr. Combs seconded by Mr. Piasecki and unanimously carried, the Commission approved the appointments of Greg Pal and Ann Kolata to the Design Revi ew Committee for the Development Des qn Area. -13- COMMISSION APPROVED CErMFICATE OF COMPLETION FOR NILES/WASHINGI"ON L.P. FOR PARCELS E3 -3, E3 -4 E9 -11, E9 -14 & E9 -15 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. Caq4ISSIOM APPROVED THE APPOINTMENTS OF GREG PAL AND ANN KOIATA TO THE DESIGN M COMMITTEE FOR THE DEVEMPMENT DESIGN AREA. South Bend Regular Me 6. NEW BU.' j . col 7. EF elopment Commission - September 28, 1990 (Cont.) Mr. rocius stated that the Commission previously contracted with Cole fates to prepare demolition and hazardous waste abatement specifications for the Transwestern Building. We are recptesting the Board of Public Works be our representative to handle demolition and any hazardous waste abatement in the Transwestern Building. The demolition specifications will be finished soon and pub #shed in early October. Mrs Kolata said that the proposal from Cole called for Cole to monitor the asbstos removal.. The Board of Works will monitor the demolition itself. Upon a motion invade by Mr. Piasecki nded by Mr. Donoho and unanimously fed, the commission approved the a intment of the Board of Public Works as a agent for advertising and mo toring the Transwestern Building d lition project. Mrs. Ko ata introduced 2 interns: Jill Cooper < nd John McDonaugh both are IUSB gradua students. They are helping on the Studebaker Corridor project. kKo ata wanted to publicly thank Esther fo handling the minutes of the last ing Esther will be acting as our a for a while. The Regular Meeting of the Redevelopment Comniss on is scheduled for October 12, 1990 at 10:0 a.m. -14- APPOINTMENT OF 1 i•A-1 OF PUBLIC WORES AS THE FOR ADVERTISING AND MONITORING THE TRANSWESTERN BUILDING DEMOLITION �;�C •a M►1KUact, u I u I Of-I Ict kiNuIU1 Do 01r`1 ! South Bend Regular Meg 9. elopment Comnmission - September 28, 1990 There hAng no further business to come before the Redevelopment Commission, Mr. Combs mide a motion that the meeting be adjourned. Mr. Piasecki seconded the motion and the meeting was adjourned at 11:15 a.m. N. Auburn, Vice President -15- " A Ij 114 Z i i� a�� lc Ann E. Kolata, Director