HomeMy WebLinkAboutRM 08-09-91August 9, 1991
10:00 a.m.
Presiding 0 fi
1. ROLL CAtL
. Mr. Roman Piasecki
Vice President
Members Present:
Legal C el:
Redevel t Staff:
Bureau
News M
Mr. Piasec
of the reg
2. APPROV.
a. An
3.
Claims
Baker
St. Jo
St. Jo
St. Jo
St. Jo
Philli
JoAnn
Housing Staff:
M A' ID1 Dom I
1200 County -City Building
227 W. Jefferson Boulevard
South Bend, Indiana 46601
Mr. Raman J. Piasecki, Vice President
Mr. Michael Donoho, Secretary
Mr. Philip J. Faccenda
M. Jenny Pitts Manier
Mrs. Ann Kolata, Deputy Executive Director
Mrs. Martha Lantz, Secretary
Mr. Ted Leverman, Bureau of Housing
M. Mary Ridmwnd, Housing Development Corp.
Mr. Don Porter, South Bend.Tribune
Mr. Than Howell, U -93
announced that the Executive Session would countinue following adjouranent
r meeting.
a motion made by Mr. Donoho,
ded by Mr. Faccenda and unanimously
ed, the minutes of the Regular
ng of Friday, July 26, 1991, were
Ived.
COMVIESSION APPROVED THE Nfa4WES
OF THE REGULAR MEETING OF FRIDAY,
JULY 26, 1991
ubmitted August 2, 1991, to be approved for payment.
Daniels
$ 3,438.15
ph County Auditor
3.00
ph County Recorder
21.00
ph County Treasurer
1,624.26
ph Title Corporation
125.00
Hunter
9,495.89
riper
18,979.85
-1-
'10'IAL $ 33.687.15
South Bend IZedevelcgnent Came ssion
Regular Meeting, August 9, 1991
3. AP OF CLA-ms (Cont.)
4.
Claims Outmitted August 9, 1991, to be approved for payment.
Abstract
& Title Corporation
ATEC Err
rirammtal Associates
Baker &
Daniels
Divisiai
of Fz uignezt Services
Federal
Express
Indiana
Michigan Power Co.
Peirce
and Associates
Project
Future
St. Joseph
Title Corporation
The Trayer
Group, Inc.
United
Rarcel Service
H.J. UTbaugh
& Associates
Ken Her
eg & Associates
North
Indiana public Service Co.
Rocky S
itz & Shane Flowers
Valley
rican Bank VISA
Tan w
ter
Mrs. Ko ata explained that with the new
ca-aputer system that the City is using and
their claim processing procedures, if a claim
were suInitted to a contractor, and there was
another bill that was submitted by another
d t that was for the same contractor,
they will be combined into one check.
Because of this, we are not exactly certain
what date the checks will be dated, so all we
can do is list when the checks were submitted
for pa t.
Mr. o asked what the bill for $72,000 to
Project Future was. Mrs. Kolata stated that
was the yearly contribution that the City
provides to Project Future.
Upon a intion made by Mr. Donoho, seconded by
Mr. Fac enda and unanimously carried, the
Camiiss m formally approved the claims
submitt August 2, and August 9, 1991.
There w6re no cann ulications .
IVA
$ 175.00
3,408.67
1,697.58
40.16
42.50
63.59
325.00
72,600.00
600.00
5,800.00
18.50
3,871.58
19,733.64
84.62
3,820.00
135.43
5.500.00
TO'ML $117,916.27
•• • •- F• =OLT
THERE WERE NO C:amMCATIONS
South Bend
Regular Meg
5. OLD BU
There
6. NEW BU'
a. Ca
elopuezt Commission
- August 9, 1991
no old business.
THERE WAS NO OLD BUSINESS
Mrs Kolata explained that this
resolution is related to the St.
Joseph/Wayne Garage. When the Commission
ent red into the financing for the
garage, the Redevelopuelt Authority sold
a hxmd issue. The Redevelopment
Caniission is leasing the garage fran the
Redevelopnent, Authority and mist make
s -annual lease payments. The
requirement in the bond docm -eats is that
you must have a certain amount of money
in the fund by a specific date or you
have to levy taxes in order to cover the
1 e payments. at this resolution
doe i Wh
s transfer $273,192.00 fran the Tax
Inc t General Fund over to the
Par g Garage Fund so that a tax levy
R winot be necessary. The Cannon
cil will take a similar action where
will be appropriating approDd oately
$75,000 of One Michiana. Square loan
repayments. They will take that action
on Ikugust 26, 1991. These two
transactions, added to what is already in
the Fund, mean it will it will not be
nec scary to levy a tax.
Mr. Piasecki asked Mrs. Kolata what the
balance was in the Allocation Fund now.
Mrs Kolata answered that twice a year
are collected and the money goes
into the TIF Revenue Account. We have to
certain there is enough to pay the
revenue bands and that there is enough in
the debt service reserve account.
Anytking left after those two accounts
goes into the General Account. The
witIrlyawal being made today is frcin
-3-
South Bend
Regular Meg
6. NEW BiT
a. coy
Pol
elogrelt Cmu ission
- August 9, 1991
(Cont.)
the General Account. There is
app tely $1,000,000 in the account
at this time. Our financial advisor has
looked at all of the r mnbers and has
looked at the cash flow, and we are in
gocxi shape and can afford to make the
transfer. We must keep a fairly large
balance in the General Account because we
will need to make additional transfers in
ear y 1992 for the revenue bond.
Mr. Donoho asked if there was a certain
sum or percentage that has to be in the
account. Mrs. Kolata answered that this
furxi contains what is left over after
welve put money in the debt service and
debt service reserve account. Mr. Donaho
asked if the Commission would have to do
this every year. Mrs. Kolata answered
that yes, it would have to be done every
year. You can use any source of money
you want to make the lease payments; but
whem the garage was financed, we said we
would use three revenue sources: the net
renvmnues from the garage, the One
Mi 'ana Square loan repayments, and the
taX increment.
LTpaj a motion by Mr. Faccenda, seconded
by Mr. Donoho and unanimously carried,
the Camlission approved Resolution
No. 1009, approving an appropriation of
fran the South Bend Central
Allocation. Fund (South Bend Allocation
No. 1A) Special Fund to the Parking
Garage Principal and Interest Account of
the Redevelogrent District Bond Fund.
-4-
�•
fool . ... • ,
• :�i� • A •
• I RIM IMM 1
■.• r� �.. .. ■. . In
South Bend
Regular Mai
6. NEW BU
b. coy
C.
elcpment Commission
- August 9, 1991
(Cont.)
Mrs Kolata explained that this
resolution was very similar to Resolution
No. 1009, except that this is not for the
Parking Garage project, this is for the
Tax Increment Bonds of 1990 that were
sold last year for the improvements in
the Downtown, East Bank and Yimroe Park.
This is the first time the Commission has
dealt with the payments for this project,
but it is taking basically the same
act ar; the resolution authorizes moving
$119,500 from that General Fund for the
Jania.Ty, 1993 payment. The Board
d is require that we always be three
pa is ahead. TWo of those payments
are capitalized interest and this is the
third. Even though this is not needed
until 1993, we need to take the action
now, to meet our bond requirements. The
financial advisor looked at all of this,
and there is sufficient money in the TIF
Gen�ral Account for this as well.
Upon a motion by Mr. Faccenda, seconded
by Mr. Donoho and unanimously carried,
the Commission approved Resolution
No. 1010, approving an appropriation of
money from the South Bend Central
Allocation Fund (South Bend Allocation
Area No. 1A) Special Fund to the South
Berxi Central Development Area Public
Imp t Project Principal and
Interest Account of the Redevelopment
Dis riot Bond Fund.
Mrs Kolata noted that this is the Colfax
Theater property. This is related to the
item on the agenda, in which we are
asking permission to advertise the Notice
of Intended Sale. This resolution would
-5-
CM1ISSION APPROVED - • •
• 1 APPROVDG AN
••••••• • • • •• I
SOUTH BEND CENTRAL • • •
(SOUTH AREA BEND • • RA •
NO. 1A) SPECIAL FUND TO THE So
BEND CENTRAL DEVELOPYENT AREA
PUBLIC R�EROVEMENT PROJECT
PRINCIPAL • It INTEREST • •
THE REDEVELORV= DISTRICT BOND
It
South Bend
Regular Me
6. NEW
c. ca
elognelt Ccnmission
- August 9, 1991
(Cont.)
set the re -use valuation, which would be
the m;nir n bid price for the property.
The resolution sets it at $65,000, which
is based on two re -use appraisals done of
the property. The appraisals were dace
witi a ndninurn requirement of 10,000
square feet of office space being
p ed for construction or a mini=m of
8,0)0 square feet of retail, restaurant
or service space. Each proposal must be
for one structure, at least two stories
high, zero setback, and must include a
pla,,l for on -site and off -site parking.
In pddition, since our costs for
acq.iiring and demolishing the Colfax
Theitre will be substantially more than
$65,000, we intend to put into the bid
pa et that the Commission will look
fa rably upon any bid that is higher
$65,000.
a motion by Mr. Donoho, seconded by
Mr. Faccenda and unanimously carried, the
Cannission approved Resolution No. 1011,
appmving the fair re-use value of
property in the South Bend Central
bev�lo=-ent Area (213 W. Colfax Ave.)
a motion by Mr. Donoho, seconded by
Mr. Faccenda and unanimously carried, the
Cannission approved the request to
pub ish Notice of Intended Sale of
Propexty located at 213 W. Colfax Ave. in
the South Bend Central Development Area
wit,i publication dates to be August 23,
199L and August 30, 1991 and receipt of
bidg to be at 10:00 a.m. an September 13,
19
TV
COMMISSION APPROVED RESOLUTION
NO. 1011, APPROVING THE FAIR
RE -USE VALUE OF PROPERTY IN THE
SOUTH BEND CENTRAL DEVELOPMENT
AREA (213 W. COLFAX AVE.)
C AAISSION APPROVED THE REQUEST
TO PUBLIC NOTICE OF INTENDED SALE
OF PROPERTY AT 213 W. COLFAX AVE.
South Bend
Regular Me
alognezt Commission
- August 9, 1991
6. NEW BUSOW (Copt . )
Mrs Kolata explained that there was one
counter offer for Parcel 8 -4 at 1110
South Lafayette. The property owner has
indLcated they would settle for $5,500.
The staff recommends that the Commission
acs ut that amount.
Upoi a motion by Mr. Faccenda, seconded CUA%aSSION ACCEPTED THE COUNTER
by . Doncho and unani=usly carried, OFFER OF $5,500 FOR PARCEL 8 -4 AT
the Commission accepted the counter offer 1110 S. LAFAYEITE BLVD. IN TBE
of 5,500 for Parcel 8 -4 at 1110 S. STUDEBAKER CORRIDOR DEVELOPM=
Lafayette in the Studebaker Corridor AREA
loamealt Area.
f. Ccmhii.ssion approval requested for
T. ........... " �F r..,., ,....,,4- 'P. c-- mob,
Mrs Kolata explained that the
R lopment Commission has worked with
Spr gated, Inc. as its financial advisor
in the South Bend Central Development
Area since 1985, and earlier this summer
we were infornied that certain assets of
Springsted had been transferred to
Evensen Dodge, Inc. Evenson Dodge is a
larje public finance fine in Minneapolis,
MN. What has been transferred is all of
the Indianapolis office of Springsted,
including all of our financial records,
all of our accounting, and the staff
peq)le that had been in the Indianapolis
office have taken employment with Evensen
Dodge. Basically what they are saying is
tha we will have the same service,
peo)le and records with a new affiliated
c . The Commission needs to assign
the contract that was entered into in
Janiary, 1991, to Evensen Dodge so they
can complete the work and receive payment
for their services. We don't expect to
see any change in the type of service
-7-
South Bend
Regular Me
alopnent, Commission
- August 9, 1991
6. NEW BUSMESS (Cant . )
f. continued...
a
h.
a motion by Mr. Faccenda, seconded CMUSSION APPROVED THE
by Mr. Doncho and unanimously carried, ASSIGN' OF CONTRACT FOR
the Commission approved the Assignment of SERVICES WITH EVENSEN DODGE, INC.
Con ract for Services with Evensen Dodge, FROM SPRINGSTED, INC.
Inc frcrn Springsted, Inc.
Mrs Kolata explained that items 6.g, h
and i are all related in that they have
to do with being able to take actions to
p to sell land in the West
' Waslungton-Chapin Development Area.
Ridmrd McCloskey is proposing to do a
re-use appraisal for the 1200 block of
west Washington, and his price is $2,200.
Upai a motion by Mr. Donoho, seconded by
Mr. Faccenda and unanimously carried, the
Comnission approved the proposal from
Ric1mrd McCloskey for a re-use appraisal
of the 1200 block of West Washington St.
in West Washington- Chapin Development
Mrs Kolata stated that Jerome Michaels
is proposing to do a re-use appraisal for
the 1200 block of West Washington. His
Price is $2,000.
Upoil a motion by Mr. Faccenda, seconded
by Mr. Doncho and unanimously carried,
the Commission approved the proposal fron
Je Michaels for a re-use appraisal of
the 1200 block of West Washington St. in
the West Washington- Chapin Development
we
FROM RICHARD NUCLOSKEY FOR A
RE-TJSE APPRAISAL OF I 11
BLOC! BLOC!K OF ►• 11 ' • I
THE WEST WASIMUMN-CHAPIN
UNEVELOPY= AREA.
••: 1 • ••••• �� I ■•• ■•
FROM ERr. i MICHAKIB FOR A R --:)
APPRAISAL OF I 11 BLOCK OF
VFBr N 11 • IN = WEST
P 11 • N API EI • ■ I=
South Bend
Regular ML:4
Cs�
i.
J•
elopment Commission
- August 9, 1991
(font . )
Mrs Kolata stated that Cole Associates
is proposing to do survey work, which is
basically combining all the individual
parcels we have bought into bigger
p rties to offer for re-use. Their
suriey and legal description would not
exceed $1,413.00. This proposal may
cover both the 1200 and 1300 blocks of
Wes Washington Street.
Upai a motion by Mr. Doncho, seconded by
Mr. Faccenda and unanimously carried, the
Ccranission approved the proposal fran
Col Associates for survey murk for the
120 and 1300 blocks of West Washington
St t for the stun of $1,413.00.
Mrs Kolata explained that this is a
p rty that an agreement had been
reached on late last simmer or fall,
butwe have had sane discussion over the
wonhng on sane of the envirormmental
language, and their attorney has asked
the Commission to sign a statement that
this accurately describes what was agreed.
to. Ms. Manier added that this includes
all of what we are calling the
Slu sky -Feltz properties, which are owned
by it variety of people and corporations.
are not all under the name of
Slu sky - Peltz, but are all related.
Slu sky - Peltz has listed out the eight
pieces of property that would be
ed by the Commission for a total
of 76,000.
Mr. Piasecki asked if Slutsky - Peltz
ght that there might be a lot of
&02
CC[VMSSION APPROVED TIE PROPOSAL
FROM COLE ASSOCIATES FOR SURVEY
WORK FOR THE 1200 AMID 1300 BLOCKS
OF 'WEST - MSFIIW lON STREET FOR THE
SUM OF $1,413.00.
South Bend
Regular M9
elcpment Ccmnission
- August 9, 1991
6. NEW BUSINESS (Copt.)
j . cont#iued.. .
debris hidden underground because they
are so emphatic on making their request.
M. m vier stated that this week she
received the disclosure statement, which
does not indicate anything that would
suggest that they know there is scmmething
mo than the underground storage tank,
which we have always ]mown was there .
Mr. Piaserki asked if the underground
tank that was mentioned was theirs. Mrs.
Kol to answered that it was theirs, but
the Cm uission knew that and that was
of the reason why the Camiission did
not agree on a higher price, because we
were oing to have to bear the cost of
taking- out that underground tank.
Mr. Doncho stated he had a question on
the part of the Agreement that reads, "As
you have noted, the Camdssion is aware
that the property contains asbestos, and,
has other potential envir= -ental
problems, including an underground fuel
storage tank." Mr. Doncho said that the
Cmriission knows there is asbestos and
the tank, but fran that phrase, it would
indicate there might be something else.
Is ere? M. Manier stated that the
disclosure statement did not reveal the
presence of anything other than asbestos
or the tank, but their concern is that if
there is anything else, that
Slu sky -Feltz be absolved from any
liability fran that. There is no reason
to believe there are any other
emrLronmental problems, but there are no
guarantees. Mr. Piasecki asked what
testing the Commission had done on these
parcels. M. Monier answered that there
had been no testing, and that the feeling
was that the nature of the property on
Wes Washington was different than the
nature of the property in the Studebaker
Corridor. A lot of it is retail
esUdDlishments and residential. Mrs.
Kol to stated that there may be some
-10-
South Bend ]
Regular Meet
M
J•
k.
elopment Caraission
- August 9, 1991
(Cont.)
s that show up, but are not of a
tude that is a real problem. M.
r stated she thought the underground
had been out of use for ten years.
Upai
a motion by Mr. Faccenda, seconded
COMISSION AM= TO THE TERNS OF
by
Mr. Doncho and unanimously carried,
PURCHASE OF PROPERTY FROM
the
Commission agreed to the terms of
SLUTSKY -PELTZ PLUMBING AMID
pu-nJiase
of property from Slutsky -Feltz
HEATING COMPANY IN THE WEST
Plurbing
and Heating Company in the West
'WASHINGTON- CHAPIN DEVELOPMENT
Washington- Chapin Development Area.
& Deborah Norman Buckman $15,780.00
N. Eddy St.
Borders Northern Oak Hares $29,845
E. Cedar St.
Mrs Kolata explained that there were two
Ren al Rehab Program loans. The first is
at 014 North Eddy Street, which is a
- bedroan house. The loan would be
in a amount of $7,890. The second is
for a house at 1226 East Cedar Street.
It is also a three- bedroan house, and the
loah would be for $8,500.00. The deed to
the property at 1014 North Eddy Street,
is signed by Jon Hunt, as the president
of Neighborhood Housing Services, who was
the seller of the property. Mrs. Kolata
di 't think there was any conflict of
interest, but wanted to bring this to the
Corrinission, attention.
$ 7,890.00 (Public)
$ 7,890.00 (Private)
$ 8,500.00 (Public)
$21,345.00 (Private)
a motion by Mr. Donoho, seconded by MMESSION APPROVED THE REN'T'AL
Mr. Faccenda and unaninrxusly carried, the REHAB LOAN IN THE AM= OF
Comnission approved the Rental Rehab Loan $7,890 FOR PROPERTY LOCATED AT
in amount of $7,890 for property 1014 N. EDDY ST.
located at 1014 N. Eddy.
-11-
South Bend m
evelagnent Co ission
Regular ing - August 9, 1991
6. NEW BUSD ESS (Copt.)
k. continued...
Upon a motion by Mr. Doncho, seconded. by CC E4ATBSION ACCEPTED THE PROPOSAL
Mr. Faccenda and unanimously carried, the OF $15,780 FRCS! NORMAN 13UCKMAN AS
CcrnTmssim accepted the proposal of CONTRACTOR FOR THE RENTAL REHAB
No#ran Bucknan as contractor for the LOAN FOR PROPERTY LOCATED AT 1014
amc*mt of $15,780.00. N. EDDY S'TRE'ET
1.
a motion by Mr. Faccenda, seconded CUMSSION APPROVED THE RENTAL
by . Doncho and unanimously carried, REM LOAN IN THE AMOUNT' OF
the Carmission approved the Rental Rehab $8,500 FOR PROPERTY LOCATED AT
Loaa in the amount of $8,500 for property 1226 E. CEDAR ST.
lomted at 1226 E. Cedar.
Mr. Piasecki stated that $21,345.00 was
more than the private sector puts into a
project like this. Mr. Leverman
explained that the Rental Rehab loans are
limited to $8,500.00.
a motion by Mr. Donoho, seconded by
Mr. Faccenda and unanimously carried, the
Cannission accepted the proposal of
No ern Oak Hares, contractor, in the
arnozit of $29,845.00 in connection with a
Ren Rehab Loan for property located at
122 E. Cedar.
Mrs. Kolata explained that the loan
applicant is the Housing Develcgrent
Co ration, the house is at 1721
Prairie, the loan amount is $21,000.00,
the interest rate would be 3.25% for 20
years with monthly payments of $119.22.
Mrs. Kolata introduced Mary Richmond from
the Housing Developrent Corporation to
answer any questions. Mrs. Kolata stated
tha normally these loans don't have to
cam through the Ccnmission, but because
itwas the Housing Development
Corporation, they felt it would be
app riate to bring it before the public
-12-
cavmssION ACCEPTED THE PROPOSAL
OF O ICI- OAK HOMES, CIONTRACIOR
IN THE AMO= OF
CCMEMON WITH A RENTAL REHAB
LOW FOR PROPERTY LOCNTED AT 1226
E. CEDAR
South Bend edevelopment Cmudssion
Regular Nlee ing - August 9, 1991
6. NEW BUSbMS (Cont.)
7.
RM
a
1. continued...
of the Commission. Mr. Piasecki
d M. Richmond what will happen to
house after it is renovated. M.
mond answered that it would be
ed. Mrs. Kolata camaezted that this
e has delinquent taxes which will be
ght up to date.
Upon a motion by Mr. Donoho, seconded by
Mr. Faccenda and unan mously carried, the
Comnission approved the request for a
$21,000 Section 312 loan in accordance
wita the recomiendation from the Bureau
of Jlousincf.
There wore no progress reports.
The Regular Meeting of the Redevelopment
Comtiss'on is scheduled for August 23, 1991
at 10: 00 a.m.
There baing no further business to cone
before the Redevelogrelt Ccnmission, Mr.
Faccendi. made a motion that the meeting be
adjourned. Mr. Doncho seconded the motion
and the meeting was adjourned at 10:35 a.m.
Paula Ii. Auburn, President
-13-
CMUSSION APPROVED THE REQUEST
FOR A SECTION 312 IRAN IN
ACCORDANCE W1TH THE
RECOMMATION OF THE BUREAU OF
HOUSING.
NEXT COMVUSSION MEEEIT G
E. Kolata, Director