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Home My WebLink AboutRM 03-22-91March 22, 1S191 10:00 a.m. Presiding O fi 1. ROLL CAILL 2. Members Members SOLTJ1H :Ei • REDEVELOPM= COMMISSION PJDGULAR MEETING Ms. Paula N. Auburn President 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Present: Ms. Paula N. Auburn, President Mr. Roman J. Piasecki, Vice President Mr. Michael Donoho, Secretary Mr. Philip J. Faccenda Absent: Mr. Sandy Combs, Assistant Secretary Ms. Jenny Pitts Manier Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Ms. Hedy Robinson, Economic Dev. Specialist Mr. Larry Koepfle, Economic Dev. Specialist Bureau of Housing Staff: Mr. Ted Leverman, Assistant Director News Mec lia: Mr. Don Porter, South Bend Tribune Mr. Than Howell, U -93 Mr. Mark Peterson, WNDU -% V Mr. Kevin Freeman, WSJV -qV Others: Mr. Carter Wolf, Center City Associates Mr. James Wyllie, President, Entertainment District Board Mr. John Gruczynski, Northern Oak Homes Mr. James Cronk Ms. Aub announced that the Executive Session held prior to the meeting would be c0ntinuOd following adjournment of the Regular Meeting. Upon a motion made by Mr. Faccenda, seconded by Mr. I liasecki and. unanimously carried, the minutes of the Regular MeetiM of Friday, March 8 1991, were approved. -1- COMMISSION A••.• E• TBE u OF i REGJLAR ME=ING OF MARCH - . . South Bend Regular Me 3. APPROM 4. 5. 6. elopment Coimnission - March 22, 1991 General Fund $ 91.91 Petty CE Lsh 42.00 Pence Dickens & Heeter, Inc. 8.00 Equipment Services Division 9.07 Audio Services Co., Inc. 65.00 Federal Express 162.00 Gene's Store 78.97 Hagmey , Michael & Columbus Housing Authority 35.00 Holladay Corp. (Security Deposit) 11,250.00 Ann Kol to 16.31 N.A.H.R O. 80.00 TOTAL $ 11, 838.26 Jerome E. Michaels $ 500.00 TOTAL $ 500.00 GRAND 7M $ 12,338.26 Upon a motion made by Mr. Doncho, seconded by Mr. Piasecki and unanimously carried, the Co miss: on formally approved the claims submnitt March 12 and March 19, 1991 and ordered checks dated March 15 and March 22, 1991 to be released. There w4xe no co mnunications. There weis no old business. a. Mr. set WC-9 Wyllie noted that the procedure in the Request for Proposals red. Five candidates were -2- CLAIMS SUENITTED MARCH MARCH 19, 1991, AND ORDERED CHECES DATED MARCH 15 AND MARCH 22, 1991, TO BE REIEASED South Bend edevelopment Commission Regular Meeting - March 22, 1991 6. NEW BUSXMS (Cont.) a. con tinueca.. . in iewed on March 5 and 6. Representatives from the staff met with the Entertairmient District Board Building Ccmmittee on March 18 to select a firm to reammiend to the Entertainment District On March 19, the Entertairment Dis xict Board approved its selection of Sov Mathre Sathrum Quanbeck Schl.ink Edw Architects of Northfield, Min esota (SMSQ) , for rehabilitation and res oration of the Morris civic Auditorium and Palais Royale. They will work with BKW Architects locally. Mr. Wyllie listed some of the criteria the committee used in evaluating the qualifications of the firms: historic preservation experience; sensitivity to loczLI user groups; local architectural rep esentation; fees; involvement of the pr' cipal architects; stagehouse co traction timetable; willingness to ass tin fund raising; and an und4rstandincr of the downtown issues rel ted to this project. Mr. Piasecki asked about the difference of cpinion among the architects about whether the stage could remain open during construction. Mr. Wyllie responded that this was a very important issue for the Broadway Theater League and the South Bend Symphony. SMSQ has seen it c one successfully. The cost of keeping the stagehouse open during co traction is the real issue. Mrs Kolata noted that the principle tect from SMSQ will be working on the project himself. He has theater fence personally. He has also served on his local historic preservation 'ssion for 12 years. Mrs Kolata noted that the Redevelopment Con#ission was acting on behalf of the -3- South Bend 10development Commission Regular Mee ing - March 22, 1991 6. NEW BUSDNESS (Cont.) a. continued... b. l of Public Works in selecting an teat for this project. The Board of .c Works will make the selection and act with the firm. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried the C=nssion authorized the recommendation to the Board of Public Works of Savik Matlire Sathrm Quanbeck Schlink Edwins ArdLitects for rehabilitation and restoration of the Morris Civic Auditorium and the Palais Royale. Ms. Robinson read the staff report relating to the tax abatement. The petitioner is AE Piston Products, Inc. The property address is 22255 West Cleveland Road. The Petitioner proposes to 1xirchase new manufacturing equipment for use in manufacturing automotive pistons. This machine line will increase the company's output by 25 %. The project is qqDected to create 29 new permanent full time jobs with an annual payroll of $8811,000 and will maintain 177 existing permanent part time and full time jobs with an existing payroll of $6,000,000 dollars. Total project cost is estimated at 5,600,000. The petitioner qualifies for five years of personal property tax aba t under Section 2 -84 of the tax abatAwmt ordinance. The taxes to be abated are estimated at $408,380. The tax0s to be paid over the 5 year period are estimated at $107,935. The property is properly zoned for the p use. The property is located in an area designated as a Tax Abatement -4- ♦• I 1 • • t -ate • -• • • i •.. South Bend evelcpment Cortunission Regular Meeting - March 22, 1991 6. NEW BUSINESS (Cont.) b. continued... C. Iqpact Area and is also located in a Tax Inc3vmental Financing Allocation Area. The petitioner qualifies for five years of personal property tax abatement under Section 2 -84.2 of the Tax Abatement Ms. Kolata noted that when the building was originally built, they built it lame emoikh to handle the additional Ms. Auburn declared a conflict of int4rest on this item. Uport a motion by Mr. Faccenda seconded by Mr. Donoho and unanimously carried, the 'Commission approved Resolution No. 987 approving 5 years of personal property tax deduction for property located at 22255 W. Cleveland Road in the Airport Economic Development Area. Ms. Auburn did not vote. •• T i T 1 • •••• �� •ii •� e Woodworth Northern Oak Homes $65,983.00* Woodworth hern Oak Homes S. William *includes $5,086 contingency Mrs Kolata asked that this item be tab ed until the next meeting. Mr. Gruczynski indicated that it was rtant to have this approved as soon as possible. Mrs. Kolata and the 'ssion expressed a willingness to -5- $17,000.00 (Public) $48,983.00 (Private) South Bend evelapment Commission Regular Mee ing - March 22, 1991 6. NEW BUSINESS (Cont.) c. conninuea... hold a special meeting for this item if the questions about the proposal are resc lved in time to do that. Ups a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the 'ssion tabled item 6.c. Mrs Kolata explained that the Cmmission previously issued bonds in the amount of $950,000 for the Airport Economic Dev lcpmnent Area. The Commission then entered into two contracts for engineering services with Cole Associates for design of the Northwest Loop road and design of an internal road. The Red elopment Authority has now issued bonds for the construction of those roads and those design contracts can be paid for from bond proceeds. Kolata noted that the Authority its to pay off the $950,000 bond in May. Mrs Kolata noted that the Redevelopment Authority will need to accept the assignment of these contracts at a future Mrs Kolata noted that these contracts contain clauses which forbid their assignment without permission. We have letters from each of the engineering f' granting permission to assign the con cts. �� 41.41 1 - •1 -� -' - �� . South Bend Regular Me 6. NEW BU. d. co e. elopment Commission - March 22, 1991 (Cont.) Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Camnission approved Resolution No. 988 assigning its interests in certain contracts relating to the Airport Eco rmic Development Area Public Imp ement Project to the South Bend Red velopment Authority. Mrs Kolata explained that the Commission ask the Board of Works to be its agent for the construction of various public inpMvements in the Airport Economic Development Area. The Board of Works has en ed into six contracts for engineering work: four contracts are with Cole Associates, one is with Clyde E. Williams and Associates, and one is with Ken Herceg and Associates. We would like the bard of Public Works to assign those con cts to the Redevelopment Authority in praer to pay the contracts from Aut4ority bond proceeds. Mrs Kolata noted that we have letters from the engineering firms granting permission to assign the contracts. by ] the the a motion by Mr. Faccenda, seconded . Donoho and unanimously carried, Commission authorized a request to Board of Public Works to assign in contracts relating to the Airport manic Development Area Public went Project to the South Bend velopment Authority. -7- • • • r � 91011- ;I-d I •• - b.1 1. ••J • • Lei .' Lew. M2 -� , •• • A 1 • - ID ■ South Bend edevelopment Comission Regular Meeting - March 22, 1991 6. NEW BUS f. ssic Cerltifica locited a Mrs Kol of 1 building Associate the bui to 'ld the (Cont.) ata noted that this Certificate etion is for the McGladrey Pullen constructed by Niles /Colfax tes. The Certificate states that It the building that they agreed and have camplied with all of toms of the Contract for Sale of Mrs Kolata noted that there was an Add to the Contract for Sale of Iand in idAch the Commission agreed to pay for any environmental clean-up costs to a of the purchase price of $112,500. There was some envirormiental clam-up necessary at a cost of $38,313. $32,543 of that was paid at closing and $10,000 was put into an escrow account to cov remaining bills related to the env nmental cleanup. $5,700.00 of tha $10,000 has been used to pay the r ining bills and the remaining $4,230 n to be released fran the escrow Mr. Faccenda declared a conflict of int6rest on this item. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Ccmdssion accepted the accounting and ratified the disbursement of funds related to the Certificate of Completion for the McGladrey Pullen Building. Mr. Facqenda abstained fram voting. Upon a moti Mr. I Pi asecki for Mr. K - _-_ on by Mr. Donoho, seconded by and unanimously carried, the approved the Certificate of for Niles /Colfax Associates y located at 431 E. Colfax. la abstained from voting. -8- COMMISSION APPROVED CERTIFICATE OF COMPU TION FOR PROPERTY LOCATED AT 431 E. COLFAX (NILES /COLFAX ASSOCIATES) South Bend edevelcpment Commission Regular Meeting - March 22, 1991 6. NEW BUSINESS (Cont.) va h. Mrs Kolata noted that the staff has recdved a counter offer of $60,000 for Panml 12 -19 in the Studebaker Corridor Development Area (1150 S. Main). The staff recommends accepting the counter Upon a motion by Mr. Faccenda, seconded COMMISSION ACCEPTED THE COUNTER by Mr. Piasecki and unanimously carried, OFFER OF $60,000 FOR PROPERTY the Commission accepted the counter offer LOCATED AT 1150 S. MAIN IN THE in the amount of $60,000 for property STUDEBAK R CORRIDOR DEVELOPMENT loc4ted at 1150 S. Main in the Studebaker AREA Co idor Development Area. Mrs Kolata noted that the staff has recudved a counter offer of $20,500 for 12 -13 in the Studebaker Corridor Development Area (1124 S. Main). The staff reconmmends accepting the offer. Upon a motion by Mr. Donoho, seconded by COMMISSION ACCEPTED THE COUNTER Mr. Piasecki and unanimously carried, the OFFER OF $20,500 FOR PROPERTY Comiission accepted the counter offer in LOCATED AT 1124 S. MAIN IN THE the amount of $20,500 for property STUDEBAFER CORRIDOR DEVELOPMENT located at 1124 S. Main in the Studebaker AREA Co idor Development Area. Mrsl Kolata asked that item 6.h. be ITEM 6.H. WAS TABLED Mrs. Ko ata requested permission to add item 6.i. to the agenda. There was no objection and the item was added to the agenda. i. South Bend "welopment Carmiission Regular Meeting - March 22, 1991 6. NEW BUSVMS (Cont.) 7. i. continued... Mr. levenman explained that this Subordination Agreement agrees to subordinate a Rental Rehab loan for prcT.exty at 1008 California to a 203K loan with the Department of Housing and Urbon Developament. The 203K loan has approved contingent upon the Rental loan being subordinated to second Upon a motion by Mr. Piasecki, seconded by Mr. Faccenda and unanimously carried, the Comnmission approved the Subordination Agreement with the Department of Housing and Urban Development for property loccited at 1008 California. Thom Howell asked what the demolition schedule was for the Transwestern Building. Mrs. Ko ata responded that demolition should begin in one to two weeps. Mr. Crox k made a request that the Commission authori a another marketing study for the 1200-1300 blocks of West Washington. The previous one was done approximately three years ac o. Since that time the Oliver Museum has addid significant traffic to the area. Those b ocks are now feasible for commercial develomient and should not be demolished. Mr. Crork also noted that Tippecanoe Place and the Oliver Museum advertise that they are located in the West Washington Historic District.. That advertising could draw additional commercial use to the area and the area co4ld become a profitable commercial village Ms. c�� referred the subject to staff for a re tion. -10- AGREEMENT WITH THE DEPARTMENT HOUSING AND URBAN DEVELOPME=NT • PROPERTY • ED ••• CAIAFOIZNTA South Bend Regular Meg 8. 0 elopment Commission - Mash 22, 1991 The Regular Meeting of the Redevelopment Coimniss on is scheduled for April 12, 1991, at 10:0 a.m. There b before Piaseck adjourn and the Paula ng no further business to come e Redevelopment Commission, Mr. made a motion that the meeting be 1. Mr. Doncho seconded the motion ieeting was adjourned at 10:55 a.m. i ,N, f. Auburn, President -11- NEXT CCNAIISSION MEETING WD-Vic i, V,w13kw0 Ann E. Eblata, Director