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HomeMy WebLinkAboutRM 06-14-91June 14, 19'. 10:00 a.m. Presiding O 1. ROLL CA Members 2. 3. Members Legal a Bureau News Mi Sig- - Eficer: Mr. Raman Piasecki Vice President LL Present: Absent: )unsel: )pment Staff: )f Housing Staff: lia: • Dr IDI 1 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Mr. Roman J. Piasecki, Vice President Mr. Michael Donoho, Secretary Mr. Sandy Combs, Assistant Secretary Mr. Philip J. Faccenda Ms. Paula N. Auburn, President Ms. Jenny Pitts Manier Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Mr. John Fonash, Economic Dev. Specialist Mr. Ted Leverman, Assistant Director Mr. James Wensits, South Bend Tribune Mr. Than Howell, U -93 Mr. Carter Wolf, Center City Associates Mr. Christopher Matteo, Taripp Development Corp. Mr. Philip Panzica, The Panzica Group Mr. James Cronk Mr. Steve Luecke, South Bend Heritage Mr. John Sullivan, Solvay Automotive Mr. Lawrence Hall, Solvay Automotive Upon a motion made by Mr. Faccenda, seconded by Mr. Combs and unanimously carried, the minutes of the Regular Meeting of Friday, May 24, 1991, were approved. South Pkmd Tribune Tri-Coubty News Tribune Business Weekly United Parcel Service -1- Xt,MSSION APPROVED THE NINU ES OF THE REGULAR MEETING OF FRIDAY, MAY 24, 1991 45.42 42.77 26.00 8.50 South Bend I Zedevelopment Ccamtission Meeting Regular Mee ing - June 14, 1991 3. OF CLAIMS (Cont.) A= 1591 continued... BOMA Miqhiana Construction 15.00 Kinkos a Copy Center 28.50 Dolphin Photo Labs 122.86 Comwrc al Office Products 182.07 Cleo Hickey i Lock & Key 95.69 Petty Ctsh organ 44.60 United 1 Service 18.00 Valley ican Bank VISA 327.54 Center for Urban Policy Research 30.50 General Fund - Telephone 326.65 Indiana Area Development Council 150.00 Equipmit Services 90.86 Ken Heximg & Associates 306.42 TOTAL A124IN 1991 $ 1,771.38 Allied Construction $ 585.36 Ida B. Owens 377.63 K & R E ectric & Yvonne Tharbs 830.00 Clean &x Systems, Inc. 6,475.00 Michian i Lock & Key 64.70 Harold organ 14,720.00 George 's 1,520.90 St. Joseph County Auditor 4.00 St. Joseph County Recorder 28.00 St. J ph County Treasurer 405.13 James Woods 17,081.57 Warner c Sons 79,272.75 Dorothy Watson 219.00 Tamera Jones 5,606.00 Delta Consultant 975.00 EBAKER BOND 1991 $ 128,165.04 Kaser-Spraker Construction $ 2,924.00 TOTAL T.I.F. 1991 $ 2,924.00 Daniel L. Pierotti & Co. $ 2.167.00 TMAL 41.9 T.I.F. $ 2,167.00 GRAND TQIAL $ 135,027.42 -2- South Bend evelopment Commission Meeting Regular Meeting - June 14, 1991 3. APPRM OF CLAIMS (Cont.) 4. 5. Upon a motion made by Mr. Combs, seconded by Mr. Faamnda and unanimously carried, the Commission formally approved the claims submittAd May 29, June 5 and June 12, 1991 and ord checks dated May 31, June 7, and June 14 1991 to be released. There w6re no communications. a. C KIISSION FORMALLY APPROVED THE CLAIMS SURIITTED MAY 29, JUNE 5, AND JUNE 12, 1991 AND ORDERED aiFOG DATED MAY 31, JUNE 7, AND JUNE 14, 1991 TO BE RELEASED THERE WERE NO COMMUNICATIONS e Woodworth Northern Oak Homes $53,038.00* Woodworth hern Oak Homes S. William * includes $2,746 contingency Mrs Kolata noted that this Rental Rehab is structured so that Northern Oak Homes, as part owner, would share in the profits from. the operation of the rental units as well as be the contractor. As originally presented to the Commission, the profit margin was higher than allowed by HUD. The Rental Rehab was tabled while we sought a recommendation from HUD. It comes before the Commission now structured so that Northern Oak Homes can make a 10% profit. Also, Northern Oak Hams is now included as an owner due to the profit sharing arrangement that has been established. The financing s cture has been approved by HUD. Mrs Kolata noted that the property presently contains four units. It will be converted to two three - bedrooms units. -3- $17,000.00 (Public) $36,038.00 (Private) South Bend evelopment Camussion Meeting Regular Mee ping - June 14, 1991 5. OLD BUSDTFJSS (Cont.) C'1 a. continued... a. Ups a motion by Mr. Donoho, seconded by Mr. Combs and unanimously carried, the Ccmnission approved the loan of $17,000 to Wayne Woodworth, Earl Woodworth and Northern Oak Homes in connection with the Ren Rehab Program for property located at 107 S. William. Upon a motion by Mr. Donoho, seconded by COMMISSION AWARDED THE CONTRACT Mr. Combs and unanimously carried, the IN CONNECTION WITH THE RENTAL Comnission awarded the contract in REHAB PROGRAM TO NORTHERN OAK connection with the Rental Rehab Program HOMES IN THE AMOUNT OF $53,038.00 to Northern Oak Homes in the amount of FOR PROPERTY LOCATED AT 107 S. $53 038.00 for property located at 107 S. WILLIAM Mrs Kolata noted that, as of 10:00 a.m. tod6y, two bids were received for the offered parcels. The parcels were offered for lease /purchase instead of for sale because the property was purchased witli bond proceeds and the remaining term of the bond is 21 years. The land cannot be sold until the bond is paid off. Mrs Kolata explained that the larger piecm of property is on a block bounded by Fellows, Monroe, South and Rush streets. The smaller parcel is located at the northwest corner of Fellows and South streets. The first bid opened was from Monroe Park Associates, represented by Christopher J. Mat , President. Monroe Park -4- South Bend Regular Me elopment Connnission Meeting - June 14, 1991 6. NEW BUSYNESS (Cont.) a. continuea... Ass>cciates proposed to construct a 32 uni townhouse apartment complex, consisting of 24 two- bedrown townhouses and 8 three- bedrocam townhouses. The bid offered $6,000 per year for 21 years for the larger piece of land. They were not inb=ested in purchasing the smaller Diece of land. The second bid opened was from Briazwood Development Company, Inc. and was for both pieces of property. They offered $1,501 per year for 21 years for the sma 1 parcel and $6,001 per year or 7,502 per year for 21 years. The dev aoper noted that he did not intend to 1 /purchase one parcel without 1 /purchasinq both. Bri irwood Development proposed to co trust 48 or more rental apartment uni (six 8 -unit buildings) on the 1 er parcel. As the site will a mmodate an additional 16 units, the developer would like to withhold this option until the initial units rent up. The developer intends to apply for Iow Housing Tax Credits through the ana Housing Finance Authority for the proiiect and, therefore, needs to be awarded the property by June 26 in order to i kadm a July 1 deadline for tax credit application. The proposal is contingent upoi i the award being made by June 26. Briarwood Development proposed to develop 8 ee- bedroom attached townhouses of approximately 1,080 sft on the smaller Mr. Panzica asked what provision there woul d be for neighborhood input in the selection of a proposal. Mrs. Kolata r nded that the bids were public d is and may be reviewed by anyone who wishes to do so. The staff will consider any resulting cc mnents when they their reccmmiendation to the -5- South Bend Regular Me 6. NEW BU a. coy M C. elopment Cc mission Meeting - June 14, 1991 (Cont.) Mr. Panzica noted for the record that his ccupany had expressed an interest in bid on the property but had not been notified about the offering in time for then to make a bid. Mrs. Kolata noted that it was unfortunate that he was not not fied, but the offering was properly Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Ccmaission referred the proposals to the staff for their report and Louie & Mary Seago Louie Seago 712 Lindsey $1,175.18 contingency •• I 1 • • 81 �I' • Si• 1 -'•'•� • • • - I t- - 91-• -J 1 $15,714.00* $7,857.00 (Public) $7,857.00 (Private) Upoi a motion by Mr. Faccenda, seconded by Mr. Combs and unanimously carried, the ComAssion approved the loan of $7,857.00 to Louie & Mary Seago in connection with the Rental Rehab Program for property loc4ted at 712 Lindsey. CCMnSSION APPROVED THE LOAN OF $7,857.00 TO 10 UIE & MARY • IN CONNECTION WITH TB1 RENTAL i•E r•: PROGRAM FOR PROPERTY IOCATED AT 712 IINDSEY Upon a motion by Mr. Faccenda, seconded CCIVMSSION AWARDED THE CONTRACT by Mr. Combs and unanimously carried, the IN CONNECTION WITH THE RENTAL Ccmmission awarded the contract in R19M PROGRAM FOR PROPERTY connection with the Rental Rehab Program IOCATED AT 712 LINDSEY TO ILUIE for property located at 712 Lindsey to SEAGO IN THE AMOUNT OF $15,714.00 TAU a Seago in the amount of $15,714.00. South Bend Pedevelopment Ceamnission Meeting Regular Mee ing - June 14, 1991 6. NEW BUSUNESS (Cont.) a. continuea... Mrs Kolata explained that the Cer:ificates of Waiver are related to pre.ricusly granted Rental Rehab loans. Under the Rental Rehab Program, ten peruent of a loan is forgiven each year for ten years if the conditions of the p are met. The conditions of the Ren 1 Rehab Program are that the pro be maintained and kept up to cod regulations, that the taxes be kept current on the property, and that the property be made available for rent to low and moderate income tenants. The Bureau of Housing has monitored these lowis and recommends the Certificates of Wai er on the agenda today. Upon a motion by Mr. Doncho, seconded by Mr. Combs and unanimously carried, the 'ssion approved the Certificate of Waiver for the Housing Development Co ration for property located at 208 E. 'ana Avenue (7/28/89 and 7/28/90). d. Coin Cer Dev loc UPO Mr. Cam Wai Cor S. e. Com Cer Dev loc UPO Mr. Cann Wai Cori W. . a motion by Mr. Donoho, seconded by Faccenda and unanimously carried, the Fission approved the Certificate of er for the Housing Development oration for property located at 1711 t. Joseph Street (3/1/91). f a motion by Mr. Doncho, seconded by Faccenda and unanimously carried, the fission approved the Certificate of er for the Housing Development oration for property located at 1813 Linden (10/18/89 and 10 18/90). -7- CCRUSSION APPROVED THE CERTIFICATE OF I E- FOR THE HOUSING DEVEILOPMENT CORPORATION FOR PROPERTY • 811 AT 208 E. INDIANA .0 •• ! 1 • • • • • X11 1 • I Dili DI • U IDI z A We* 114 •• • •• 616 1 • •••• III 1 MN -J • /• M.' • - I • I DAMMIrSAWN09 M to) LINDEN (10/18/89 aAND 10/18/90) South Bend Regular Me RE Pp va h. i. elopment Commission Meeting - June 14, 1991 (Cont.) Upo i a motion by Mr. Donoho, seconded by UOMMISSION APPROVED THE Mr. Faccenda and unanimously carried, the CERTIFICATE OF TULIVER FOR THE Comftission approved the Certificate of HOUSING DEVELOPMENT CORPORATION Waiter for the Housing Development FOR PROPERTY LOCATED AT Co ration for property located at 239 LAPORTE (5/1/91) 239 LaPorte (5/1/91). Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Comftission approved the Certificate of War ter for Neighborhood Housing Services for property located at 920 South Bend Av ue (1/17/90 and 1/17/91). COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR NEIGHBORHOOD HOUSING SERVICES FOR PROPERTY LOCATED AT 920 SOUTH BEND AVENUE (1/17/90 AND 1/17/91) Upon a motion by Mr. Donoho, seconded by COM USSION APPROVED THE Mr. Faccenda and unanimously carried, the CERTIFICATE OF WAIVER FOR Cmmaission approved the Certificate of NEIGHBORHOOD HOUSING SERVICES FOR Waiver for Neighborhood Housing Services PROPERTY LOCATED AT 916 SOUIH for property located at 916 South Bend BEND AVENUE (1/17/90 AND 1/17/91) Av (1/17/90 and 1/17/91). Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Comnission approved the Certificate of War ter for Neighborhood Housing Services for property located at 908 -9082 South Beno Avenue (1/17/90 and 1/17/91). -8- OONIISSION APPROVED THE CERTIFICATE OF WAIVER FOR NEIGHBORHOOD HOUSING SERVICES FOR PROPERTY LOCATED AT 908 -9082 SOUTH BIND AVENUE (1/17/90 and 1/17/91) South Bend redevelopment Ca mission Meeting Regular Mee 1ng - June 14, 1991 6. NEW BUSDMS (Cont.) J• k. OM Mrs Kolata asked that this item be tab ed until the next meeting. There w no objections and the item was Mrs Kolata explained that under this contract Center City Associates (CCA) will maintain a number of RedeveloprPent-cumed properties in the d tawn, including the Robertson's building, the retail space in the St. J ph/Wayne Garage, the State Theater store fronts and marquis, street lights, and the CCA office building. The corrxact is similar to the contract the Commission had with CCA last year for property management and will run from June 1, 1991 to May 31, 1992. In return for these services, CCA will receive the prcx3eeds from the store fronts in the State Theater and from the parking lots north of the CCA office. Fifty percent of those proceeds must be kept in a property management fund and fifty pen7ent may be used for CCA activities. Upon a motion by Mr. Faccenda, seconded by Mr. Combs and unanimously carried, the 'ssion approved the Contract with Center City Associates for Property out the had Kolata explained that, during late 1 and early May, hard rains washed the dirt under the sidewalks along Pointe at St. Joseph apartments. We Kaser Spraker do the emergency •• i I • • -•.• i • AP 19 •iD :N. • • • C424 ID South Bend edevelopment Commission Meeting Regular Meeting - June 14, 1991 6. NEW BUSMESS (Cont.) M. 1. continued... repidr. Statute allows the staff to take act on in an emergency and follow up with Ccxm 'ssion declaration of emergency and ratification of the contract. The conixact with Kaser Spraker was for $3, 20. Upon a motion by Mr. Faccenda, seconded by Mr. Combs and unanimously carried, the Com,ussion declared a state of emergency and ratified the contract with Kaser-Spraker Construction in the amount of 3,120 for sidewalk repairs in the East Bank Development Area. Mrs Kolata noted that the staff has ived two counter offers for property in the Studebaker Corridor Development Arut. The first is a counter offer of $47,000 for parcel 13 -11, located at 1312 S. in. The staff reccamiends accepting the counter offer. Upon a motion by Mr. Coombs, seconded by Mr. Donoho and unanimously carried, the 'ssion accepted the counter offer of $47,000 for parcel 13 -11 in the Studebaker Corridor Development Area. The second counter offer is in the amount of S37,000 for parcel 13 -12, located at 1314 S. Main. The staff reccmmiends acrActina the counter offer. Upon a motion by Mr. Ccubs, seconded by Mr. Donoho and unanimously carried, the Ccumission accepted the counter offer of $37,000 for parcel 13 -12 in the Studebaker Corridor Development Area. -10- •• N. M • 1 Ia • • 401"I'm 1 • 1, • /• . oI• • /• OW_ - • 901W201 C•. I 1 • MCI' ED 1 COW--2i• OFFER OF 1 / • FOR PARCEL MCI IN TBE STUDEBAKER CORRIDOR DEVELOPMENT COWUSSION ACCEPIED ME COUNTER OFFER OF 1/1 FOR •• -MCI IN THE =EBAKER CORRIDOR DEVELOPMENT South Bend Regular Meg elopment Cminission Meeting - June 14, 1991 6. NEW BUSINESS (Cont.) n. Mrs Kolata noted that last year the Conmission hired H. J. Umbaugh & Associates to be its financial advisor in the Airport Economic Development Area. There is a need to do additional analysis of the tax increment in the area now that all of the tax appeals following reassessment have been heard and the n adjusted accordingly. This contract hires H. J. Umbaugh to do that ysis on an hourly basis. We will prcmride them with the raw data. They will report regularly on how much time they are spending and at what cost, so we can monitor the cost. Upon a motion by Mr. Faccenda, seconded COMMISSION APPROVED THE ADDENDUM by . Combs and unanimously carried, the TO CONTRACT WITH H. J. UMBAUGH Ccmmussion approved the Addendum to AND ASSOCIATES FOR FINANCIAL Contract with H. J. Umbaugh and SERVICES RELATED TO THE AIRPORT Associates for financial services related ECONOMIC DEVELOPMENT AREA to the Airport Economic Development Area. o. CoTaiission a roval reauested for Resolution. No. 997 annroviM the transfer of 1 Property to the South Bend Redevelacment Authority. Ms. Manier explained that the Redevelopment Authority accepted a offer for a property in the Airport Economic Development Area. A clei ical error resulted in the deed for that: property being made out in the name of the Redevelopment Commission instead of the Redevelopment Authority. Th efore, we are asking the Commission to txansfer the property to the Aut2Lority. Upor i a motion by Mr. Faccenda, seconded COMMISSION APPROVED RESOLUTION by b Ir. Combs and unanimously carried, the NO. 997 APPROVING THE TRANSFER OF 'ssion approved Resolution No. 997 REAL PROPER'L'Y TO THE SOUTH BEND approving the transfer of real property REDEVELOPMENT AUTHORITY to the South Bend Redevelopment Authority. -11- South Bend Regular Me RE 12 a Mrs det the Cen imp Dev of ' las the and by the 998 or elopment Comnnission Meeting - June 14, 1991 (Cont.) Kolata noted that this Resolution amines to spend up to $250,000 fram tax increment fund of the South Bend ral Development Area to pay for -ovements in the South Bend Central :lopment Area. This action is ionly known as the direct expenditure 'IF. The Cortunission used this method year to pay for some improvements in downtown and East Bank. The types of ovements we expect to make are curb sidewalk work and other public ovements in the downtown and East and engineering design work for the Bank area. i a motion by Mr. Faccenda, seconded [r. Doncho and unanimously carried, Comission approved Resolution No. determining to pay certain expenses rred for local public improvements in erving the South Bend Central cation Area (South Bend Allocation No. 1A) from the South Bend Central cation Area (South Bend Allocation . No. 1A) Special Fund. Mrs Kolata noted that Resolution No. 999 will appropriate the funds mentioned in the previous resolution, following the Comussion's public hearing on June 28. -12- •• 1 • - • - • �� -• ii' • • MD • • South Bend Regular Me elopment commission Meeting - June 14, 1991 6. NEW BUSINESS (Cont.) q. conTinueca... r. Upon a motion by Mr. Faccenda, seconded COMMISSION ACCEPIED RESOLUTION by Mr. Doncho and unanimously carried the NO. 999 FOR FILING AND SET 10:00 Coimiission accepted Resolution No. 999 A.M., JUNE 28, 1991 AS A PUBLIC for filing and set 10:00 a.m. June 28, HEARING ON RESOIDTION NO. 999 1991 as a public hearing on Resolution No. 999. (Solvay Automotive Inc.) Mr. Fonash read the staff report on the tax abatement petition. The petitioner p to purchase and install a sul orating treatment system which will be imed to create a vapor barrier on plimstic fuel tanks which will be naniffactured for General Motors Co rations' new Saturn Automobile ly plant. The project will create nine (9) new permanent full -time jobs representing an anniial payroll of $141,336 and will mabitain one hundred forty (140) existing permanent full-time and part time jobs witli an annual payroll or $3,227,501. The total estimated cost of the equipment is $373,939. The property is properly zoned for the proposed use. The property is not locitted in an area presently designated as it Tax Abatement Impact Area, but is in a 7cLx Incremental Financing Allocation Arai. The petitioner qualifies for five (5) years of personal property tax abatement. Wit out abatement, the taxes on the imp ements are estimated to be $34 566. With the abatement, taxes are est inted to be $7,226. Therefore, the of the abatement is $27,340. -13- South Bend Regular Meg 6. NEW BU; r. coi 7. 8. elopment Commission Meeting - June 14, 1991 (Cont.) Mr. John Sullivan, Solvay Automotive, no that purchase of this equipment will allow Solvay to be a supplier for all of the big three auto manufacturers. Their currently supply Ford and Chrysler. They will now be able to supply General Mot rs. This equipment will generate app ximately $11,000,000 in sales the fir,.t year of the project. Upon a motion by Mr. Faccenda, seconded by Mr. Donaho and unanimously carried, the Commission approved Resolution No. 1000 approving an application for nal property tax deduction for property located at 1827 N. Bendix Drive (So vay Automotive Inc.) There w�xe no progress reports. The ne# Regular Meeting of the Redevelopment Commiss on is scheduled for June 28, 1991 at COWUSSION APPROVED • E. • • • 00• APPROV3NG AN APPLICATION • • PERSONAL PR• • .9i J DEDUCrION FOR PROPERTY LOCATED AT 1827 N. BENDIX D- (SOLVAY • • • Alzi x- • -••ct• •:1 -• 10:00 a m. 9. ADJ There hAng no further business to come ADJOURN before rhe Redevelopment Commission, Mr. Faccend i made a motion that the meeting be adjourned. Mr. Combs seconded the motion and the mee ing was adjourned at 10:45 a.m. Paula N� Auburn, President -14- Ann E. Kolata, Director