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HomeMy WebLinkAboutSM 06-26-91June 26, 19 1 10:00 a.m. Presiding 0 f 1. ROLL CA Members Members Legal 0 + SOUTH BEND REDEVELOPMENT 03VISSION SPECIAL 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. Ronan J. Piasecki, Vice President Mr. Michael Doncho, Secretary Mr. Sandy Combs, Assistant Secretary Absent: News Media: Others: Mr. Philip J. Faccenda Ms. Jenny Pitts Monier Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Ms. Hedy Robinson, Economic Dev. Specialist Mr. Jim Sexton, Intern Mr. Don Porter, South Bend Tribune Mr. Christopher Matteo, Monroe Park Associates Mr. Ton McCalley, Briarwood Development Co. Mr. James Cook, The Colfax Group Mr. Thomas Panzica, The Panzica Group Ms. Auburn announced that items 6.b. and 6.c are additions to the agenda and will be considered before item 6.a. C. Mrs. Kolata noted that WYEZ has reqjested to use the Morris Civic Plaza on June 26, 1991 for a broadcast fran 11:00 a.m. to 1:30 p.m., offering ice cold Coca Cola and slices from a six foot Subway sandwich. They have signed an Indemnification and Hold Hannless Agreement prepared by our Department. The staff rec approval of the request. -1- South Bend Vev!lcpment Commission Special Mee g July 26, 1991 2. NEW BUSZESS (Cont.) c. continuea... L701 2. a. Upon a motion by Mr. Doncho, seconded by 14r. Piasecki and unanimously carried, the Commission approved the regiest from WYEZ to use the Morris Civic Plaza on June 26, 1991. Aparoval of claims. S EBAKER BODED 1991 Diahe Ernsberger & Estate St. Joseph County Auditor St. Joseph County Recorder St. Joseph County Treasurer Nklip4c.-M ��� :• a .. COMvf[:SSION APPROVED THE REQUEST FROM WYEZ TO USE THE MORRIS CIVIC PLAZA ON JUNE 26, 1991 $1,852.70 1.00 7.00 47.30 $1,908.00 $1,908.00 Upon a motion by Mr. Combs, seconded CONNISSION APPROVED THE CLAIMS by Mr. Doncho and unanimously carried, SU14ET TED JUNE 26, 1991 AMID ORDERED the Ccgmtission approved the claims CHECKS DATED JUNE 27, 1991 TO BE subnitted June 26, 1991 and ordered RELEASED checks dated June 27, 1991 to be rel ed. Mrs. Kolata noted that on June 14 the Ccmnission. received two bids for residential development of the offered parcels in Monroe Park. Ms. Robinson summarized the proposals fran Briarwood Development Campany and Moncoe Park Associates. A written of the proposals is attached to these minutes. M. Robinson noted that neither pr sal indicated whether the devalcper would be applying for tax aba ement. Both developers responded tha they intended to seek tax aba ement. -2- South Bend Special Meg elcpment Commission - June 26, 1991 2. NEW BUS S (Cont ) a. conruzueca... Mrs Kolata noted that Monroe Park Associates has negotiated the purchase of the corner lot of the block, which is not owned by the Commission, and int to use that in the Mrs Kolata noted that Monroe Park Associates has indicated that they wouLd need a set -back variance from the Board of Zoning Teals for the se cks on Fellows and Rush Streets. Their bid is unclear regarding how (8 or 16) units would be built in the first phase and what street those units would face. Mr. McCalley noted that he has quite a bit of experience developing tax creiit projects. Based on the criteria the state uses in awarding tax credits, the project should be ass4red of receiving them. Mr. Mccalley clarified the issue of an addLtional 16 units that could be built at a later time. These units are not part of his present proposal, but could be built later if the project is successful and the C ssion agrees to the develognent . Mrs Kolata asked if he would be applying for tax credits for the extra 16 units at the same time as he app 'Lies for the 48 units. Mr. Yl-_Calley responded that he would not. An application for mere than 50 units req.iires that the developer provide a de fled market study showing the demmd for that number of low incMie units. He would only apply for tax crelits for those if and when he decided to build them. Until a decision was made to build the 16 additional units, that area would be a larloscaped, park -type area. -3- South Bend Special Me elopment Commission - June 26, 1991 2. NEW BTJS04ESS (Cont.) a. continues... Mr. McCalley noted that the state has discussed the possibility of discontinuing the low inane tax creilts after this year. Mr. McCalley noted that, since 1974 he has developed a number of apartn -ent projects, ranging from 12 units to 140 units. Most of the projects have been low inane, affordable housing projects. They have a centralized boackeeping system in Indianapolis and hire a resident manager. Yding the proposal by Monroe Park ciates, Mr. Matteo noted that the ect could be built within existing ding code regulations and not .ire a setback variance, but he erred to have as much roan as ible for the interior yards. Mr. Matteo noted that he and his associates have developed over 630 a t /townhouse units, most of whiah have been converted to for sale units. This project has the potential of ing converted to for sale units wh the lease /purchase arrangement Mr. Doncho asked both developers if theF could assure the Commission that the projects as canpleted would look like the projects as proposed today. Mr. Matteo responded that they intend to ise the front bay windows but would not have copper over the bay windows. He so said the bay windows on the sides of the end units would likely be replaced by double windows. Both Mr. Matteo and Mr. McCalley indicated that the roof pitch was shown steeper than it d likely be built. Mr.IMcCalley noted that the townhouse uni_ s he proposed would have patios. -4- South Bend edevelopment Commission Special Mee ing - June 26, 1991 2. NEW BUSOESS (Cont.) a. continuea... The apartment building he proposed wou.Ld have balconies on the upper stories and patios on the lower 1 1. The patios and balconies would be at the back of the building. Mr. Piasecki asked Mr. Matteo if he wouLd be using some brick on his buildings. Mr. Matteo responded that th would use brick along the front of e building in the entry areas. Mrs. Kolata noted that Mr. Matteo's proposal was for 8 or 16 units in the fir3t phase. She asked whether it wouLd be 8 or 16 units. Mr. Matteo responded that it would most likely be 16 Imits. Mr. Piasecki stressed his concern that the Monroe Street side of the site be attractive. He asked if the units wouLd use Monroe Street for parking. Mr. Matteo responded that there would be Orking for all of the units on the interior of the site. The same question was directed to Mr. Mc ley. Mr. McCalley responded that his proposal does not use Monroe St t for parking. However, if it was decided at a later date to build the additional 16 units, those units wculd need to use Monroe Street for Mr. Cook asked the Comroi_ssion and sta f if they felt the needs of low and moderate income housing have been met in Nbnroe Park. Ms. Robinson resoonded that the Commission has ac fired property in Nbnroe Park which it intends to rehab as 17 units of low/mod housing. -5- South Bend edevelopment Commission Special Mee ing - June 26, 1991 2. NEW BUSZESS (Cont.) a. conr-inuea... Mrs Kolata responded that the need for low /mod housing in St. Joseph CoLuity probably has not been met. But she questioned whether all of St. Joseph County's low /mod income housing hadl to be in Monroe Park. Mr. Piasecki asked about the size of his units. Mr. Matteo responded that the two bedroom units would be appraKimately 1050 -1100 sft. The three bedroan units will be amkoxinatelv 1200 -1250 sft. Mr. McCalley responded that his apartnmt units are approximately 850 sft and the townhouse units are approxinately 1000 sft. Mrs Kolata asked Mr. Matteo who he saw as his market for tenants. Mr. Mat eo responded that he expected to draw tenants fran young professionals who work in downtown South Bend who wouLd like to live closer to downtown and pay less than they are presently navLncr for rent in the suburban Mrs. Kolata asked Mr. McCalley asked about the rent structure for his project: is $600 an affordable rent for people whose income is 60% or below median income? Is $600 the that can be charged with the use of tax credits? Mr. McCalley responded that $600 is the maximum that is set by the state with the use of tax credits. His exparience has shown that low /mod income people will pay that amount for Mr. Piasecki asked if Mr. McCalley wouLd accept Section 8 certificates. Mr. McCalley responded that he would. South Bend edevelognent Commission Special Mee ing - June 26, 1991 2. NEW BUSINESS (Copt.) He cated that he saw his market being single parent families and elderly singles or couples. Mr. Piasecki expressed concern about seoLrity within the project. He asked abait the proposed security for each d lcpment. Mr. McCalley responded that his units have a central hall and he was thinking of having the doorway 1 ed, perhaps on a buzzer system. Mr. Matteo responded that each unit in his develort will have its own seoirity system which the tenants cotAd chose to have monitored by a seaLrity service.Mr. Panzica addressed the Commission on behalf of the var ous Panzica controlled d lcpm eats in and around Monroe Park. He stated that they feel there is eat potential for commercial devLopment north of South Street. They feel that commercial development is the highest and best use of the larxi and would like to see this land be developed into small one - two story offices. How3.ver, if the Commission chooses to dispose of the land for residential dev�logTent, Mr. Panzica raised the following concerns: 1) current demand for residential development near downtown South Bend; 2) the impact of the appearance of the development on Monroe Street; 3) what will happen to parcel number one if the Monroe Park Associates bid is accepted; 4) the ity of the development (brick, 1 caping); 5) parking should be con ined on the site; 6) what the Cannission does under a lease /purchase arr Bement if the first part of a d lcpnent fails; and, 7) long term aemment and maintenance of the -7- South Bend Special Meg 2. NEW BU. a. co elognent Commission - June 26, 1991 (Cont.) Ms. Auburn noted that it was nice to have two substantial developers bid on the project in this area. She agreed that the Commission is concerned about most of the same things Mr. Panzica men Toned. There are strong c ents in each proposal and some dra vbacks to each. She asked for the sta f recommendation on this Mrs Kolata noted that the staff recdmendation. was to award the land to Monroe Park Associates. The site plwi sulanitted by Monroe Park Associates better addresses the site which is a predominant view fran No Street. However, the staff rec that the Commission ensure that what is proposed is what is actually built by setting up design revLew at several points along the pr ess . The staff recommendation is con ingent upon a 16-unit min i rrn nn for the first phase of development and tha the first phase be constructed alo g Monroe Street. The staff would also like to see a marketing plan. Mrs Kolata stated that she would like to have this additional information. satisfactorily provided to the C ssion prior to the execution of Mrs Kolata recommended that the final exterior design be brought to the Cannission before it goes to the Design Review Canmittee, because the design and layout of the project is the main reason for the staff reoxarendation. of Monroe Park Associates' bid. If that would sig,lificantly change, the staff rec tion would change. 0 a motion by Mr. Doncho, seconded 1. Piasecki and unanimously ME COMMSSION ACCEPTED THE BID MADE BY MI)NROE PARK ASSOCIATES WITH THE South Bend Redevelognent CamLission Special Mee ing - June 26, 1991 2. NEW BUS07.SS (Cont.) 3. 4. a. continuea... ied, the CmTni.ssion accepted the bid made by Monroe Park Associates with the following qualifications: 1) tha Phase I (initial construction) congist of 16 units, facing Monroe Street; 2) that a marketing plan be subnitted, and, 3) before submittal to the Design Review CcnTnittee, final drawincrs be submitted to the The Regular Meeting of the Redevelopment Commission is scheduled for June 28 1991 at 10:00 a.m. There before motion Donoho was adj Paula n FOLLOWING Q11ALIFICATIONS : 1( THAT PHASE 1 (INITTAL CONSTRUCPION) CONSIST OF 16 UNITS, FACM NDNROE STREET!'; 2) THALT A Y2U= 'IlQG PLAN BE SUBMITTED, AND 3) BEFORE SUBMITTrAL TO THE DESIGN REVIEW COMVTTE, FINAL DRAW= BE SUBMITTED TO THE COMMISSION NEXT COMMISSION Y EE'= no further business to come AATOURNNENT Ccmmission, Mr. Combs made a the meeting be adjourned. Mr. nded the motion and the meeting .ed at 11:39 a.m. Vti. Lb"'� Auburn, President E. Kolata, Director • - iI GUARANTY: REVENUES: R=AIS DENSITY: SUMMARY OF IN I 26, 1991 ICAMUNS : 1 21,780 SFT; MINIKJJM OFFERING PRICE: $1,302/YR FOR 21 YRS; ID2M [JM NUMBER OF UNITS = 6 2 100,248 SET; MINUMUM OFFERING PRICE: $5,879/YR FOR 21 YRS; MINIMUM NUMBER OF UNITS = 24 I ••s $1,501/YR $6,001/YR $15,754.20 $391 1 BEW $472 2 BURT'! $546 3 BUN AVG 20 UNIT /ACRE IRE 1080 SFr' /3 BIJf 4 850 SFr /2 BEW 675 SFT /1 BEW BUILD 48 RENTAL APPS. IN: 8 ARE 3 BSI 2OWNHCUSE 24 ARE 2 BUM APIS 16 ARE 1 BEW APIS DEVELOPER WILL APPLY FM LOW INCCME HOUSING TAX CREDITS THROUGH INDIANA HFA — UNITS WILL BE RENTED (FOR THE = 18 YEARS) TO PEOPLE WHOSE INCCIME IS AT 60% OF MEDIAN INCOME MONROE PARK ASSOCIATES NO BID $6,000/YR $12,600.00 $570 2 BEEF! $650 3 BEW AVG 14 UNITS PER ACRE 1250 SET 3 BIM4 1114 SFr 2 BEW BUILD 32 ZOWM014ES : 24 2 BEW 8 3 BDRM « t:l• ALL PARKING SURFACE SPACES, NO v • tilt► GARAM CARPCRIS, GARAGES, EIC. PER UNIT PLUS SURFACE • ar ALTERNATIVE TO INTRODUCE PARKING ON MONROE STREET • I • �. ALL VINYL EXTERICIRS ON • • -& • - VINYL Off 2ND ACCENTS POSSIRT ••- WGI Dt► ENTRANCE WINDOW •• ER r SELF-CLEAN OVENS, •.91 ' lE ' •' W/ICE EACH HAVE MANERS, WASHER/MZM HOOKUPS, PATIO AND MASSED BACK MAINTENANCE FREE EXTERIOR, I ' • ENEEGY EFFICIENT' FROW ENTRANCE OF FACES STREET APARTMENTS REFRIGERATOR, • G ALL ERICK DISPOSAL, CENTRAL AIR, BAY W-INDOVS ON r= PATIOS RANGE, •• • I REAR SECURITY • - «E. ' BUILDINGS; 1 16 BUILDINGG BAY WINDOWS ON tl- E SIDE, BALIOONIES IN REAR, LAlJNDRY MOM IN EACH ElUILDING; BRICK AND VINYL WINDOW COVERINGS, SELF CLEAN OVENS, - EFRIGERATOR « HUM, MAINTENANCE FREE 91Y E1- • • ENEROY EFFICIENT, OUTSIDE STORAGE FOR TENANTS COST $2,733,000; $1,500,000; COST PER UNIT $56,937 COST PER UNIT $46,875 NOVEMBER 1, 1991 (EARL TEST) COMMENCE 30 DAYS AFTER SIGNING OF LEASE OCCUPANCY BY EARLY SPRING, PURCHASE AGREEMENT 1992 2 PHASES OF CONSTRUCTION: PHASE I - ONE TO M BUILDINGS (8 -16 iJNITS ) PHASE II - MEN 55-60% OF UNITS OF PHASE I ARE LEASED /��L__�� LOW INCOM TAK CREDITS TAX ABATEMENT APPLICA=CIN INDICATED INDIANA 91i 91• • • • =TANA • ' / t 91i •J 91•S. / .. •1 ■• • CONSTRUCTION FINANCING (3) 5-YR. NlNI-PERK LOAN E)QUAL TO AMOUNT OF ..J•• /. E APPROVAL OF • INCICME TAX CREDITS ADDITMONAL 16 UNITS NAY BE CONSTRUCTED ON PORTION OF SITE APPLICATION FOR LOW t ••' 1 TAX CREDITS NEEDS TO BE SUR,TL= BY 7/1/91 WILL 19191• TO HAVE A MAR= STUDY / i v 91i 1 94 1) PROPOSAL INCLUDES PRIVATELY • 1 1911 CIORNER LOT 2) NOT BIDDING ON PARCEL 1 • 9•' /° S S=CK VARIANCE f APPEALS SIDE YARDS FROM BOARD OF ZONING DEVELOPER ••91• • I HOUSE AT 521' SOUTH WHICH WILL TO MOVED NUMBER OF IN / R. PHASE OF CONSTRUCTION LOCATION OF /'s PHASE 7) ENTIRE PRaTECT ESTDOXED TO BE COMPLETED 91i WITHIN' • YEARS