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HomeMy WebLinkAboutRM 09-27-91SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING September 2 , 1991 10:00 A.M. Presiding Officer: Ms. Paula N. Auburn President 1. 2 3. 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Members Present: Ms. Paula N. Auburn, President Mr. Roman J. Piasecki, Vice President Mr. Michael Donoho, Secretary Mr. Sandy Combs, Assistant Secretary Mr. Philip J. Faccenda Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Ms. Hedy Robinson, Economic Dev. Specialist Ms. Cleone Hickey, Economic Dev. Specialist Bureau of Housing Staff: Mr. Ted Leverman, Assistant Director News Media: Mr. Don Porter, South Bend Tribune Mr. Thom Howell, U -93 Mr. Scott Brink, WNDU -TV Mr. Robert Townsend, WNDU -TV Others: Mr. David Ray, South Bend Tribune Mr. Chris Matteo, Taripp Development Mr. Thomas McCalley, Briarwood Development Mr. James A. Cook Upon a otion made by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the minutes of the Regular Meeting of Friday, September 13, 1991, were approved. Motor Vehicle Highway Fund Tri -County News Baker & Daniels Federal Express General Fund -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, SEPTEMBER 13, 1991 1,070.38 35.04 595.20 11.50 473.45 South Bend edevelopment Commission Regular Mee ing - September 27, 1991 3. APPROVAL OF CLAIMS (Cont.) ADMIN 1 91 continued... South B nd Tribune Tri -County News Equipment Services Total A in 1991 4. Code Enforcement Abstract & Title Corporation Baker & Daniels ATEC En ironmental Consultants Thomas Horka Ralph L uver Peirce Associates Cole As ociates Total S udebaker Bond GRAND TOTAL Upon a motion made by Mr. Combs, seconded by Mr. Don ho and unanimously carried, the Commission formally approved the claims submitted September 18 and September 25, 1991. a. Mrs Kolata noted that in addition to the Conuaunication from Briarwood Development, the Commission has just received a Conununication from Taripp Development Corporation which will be added to the agenda as item 4.b. She read the communication from Briarwood Dev lovment into the record: -2- 103.72 70.53 84.00 $ 2,443.82 $ 206.00 150.00 851.90 1,872.00 5,275.00 5,100.00 400.00 14,826.18 $ 28,681.08 $ 31,124.90 COMMISSION FORMALLY APPROVED CLAIMS SUBMITTED SEPTEMBER 18 AND SEPTEMBER 25, 1991 South Bend Regular Mee 4. COMMUNI elopment Commission - September 27, 1991 NS (Cont.) a. continuea... 0 September 19, 1991 Mrs. Ann Kolata, Director Redevelopment Commission 1209 County -City Bldg. 227 W. Jefferson Blvd. South Bend, Indiana 46601 Deaf' Mrs. Kolata: Please consider my request to lease the property on the northwest corner of South and Fellows Streets known as Parcel 1 in you land disposition bid documents in Monroe Park in the City of South Bend. My proposal will be for 8 units on this site with a lease amount of $1302 per year which was your acceptable price at the time of bid. I also understand that there are no other bids outstanding for this parcel. There are tax credits ava"lable from the State of Indiana and I believe that you still have the renderings and the site plan from my original proposal. I will also still be interested in the balance of the property should Chris Mat eo's deal not materialize. If trou would like me to attend the next mee ing I would be happy to do so. Th#k you for your consideration. Sin erely, BRI WOOD DEVELOPMENT CO., INC. Tho s A. McCalley, President Mrs Kolata read into the record the co unication from Taripp Development: -3- South Bend I Regular Mee elopment Commission - September 27, 1991 4. COMMUNICATIONS (Cont.) a. continued... September 27, 1991 Ann Kolata Redevelopment Commission 1209 County -City Bldg. South Bend, Indiana 36601 I &n writing this letter in regards to our proposed apartments for Monroe Park. In light of recent market study we have had performed, we are not of the feeling that a market rate apartment complex of the scale we proposed would not be pra tical to develop at this time. Alt12ough our market study indicated that the area of Monroe Park is developing in a positive manner, in terms of housing values, there did not seem to be a market that would sustain the rents needed to mak our project a success. In lieu of thig information we are respectfully withdrawing our proposal for the red velopment of the property in question in Monroe Park. Our decision to withdraw is one based entirely on market conditions at this time and is in no way reflective of any other factor. If our market study results had been different, and showed the project would be suc essful, then we would have proceeded as a originally proposed. Our decision for this course of action is also based on our desire to see the continued redevelopment of the do town /near downtown area of South Bend, and we will continue to do whatever is ecessary to see this fulfilled. Tar ' pp Development Corporation Chrstoper J. Matteo, President -4- South Bend edevelopment Commission Regular Mee ing - September 27, 1991 4. COMMUNISATIONS (Cont.) a. continued... Mrs. Kolata noted that the staff has had a number of conversations with both developers and recommends that Monroe Park Associates be released from their obl'gation under the bid for Parcels M9-L, M9 -2, M9 -3, M9 -4, M9 -5, M9 -6, M9 -7, M9-3, M9 -9, M9 -10, M9 -11, M9 -12, M9 -13, M9-L4, M9 -16, M9 -17, M9 -18 in the South BenJ Central Development Area and that the Commission return the performance dep sit that was submitted with the bid. The staff also recommends that we work witi Briarwood Development to make their des'gn and site plan conform to the sta dards the Commission has for the par els. `Ms. Auburn noted that the Commission is disappointed that the market study did not support market rate development in that area at this time. She said that when the Commission awarded the land, we werO aware that the recession might make it Oifficult for the project to succeed. Ms. Auburn expressed appreciation that Bri rwood Development was still int rested in the property for affordable Mr. Piasecki suggested that it would be a good idea if developers did a market study prior to submitting their bids. Mrs Kolata noted that we give the developer very little time to come up with a proposal and ask them to go to significant expense developing that proposal without knowing that they will be the successful bidder. Ms. Auburn stated that if economic con itions had been a little stronger, the market study might have turned out dif erently. -5- South Bend Regular Mee 4. COMMUNI a. con elopment Commission - September 27, 1991 (Cont.) inued... Mr. McCalley noted that he needs to have his project contain the same number of units and unit mix in order to submit for tax credits September 30. He is willing to work with the staff to find a style that better fits the character of the nei hborhood and a rearrangement of the sit plan to make a more prominent fro taae on Monroe Street. Mr. McCalley asked for permission to wait until tax credits were approved for the project before he submitted his performance guarantee. Although he fully expects to receive the affordable housing tax credits, he would not be able to develop the land unless tax credits were approved. Mrs. Kolata responded that the bid packet specifically requires that the performance guarantee be submitted with the bid. However, the Commission would be willing to award the land contingent upon the project receiving tax credits and would return the performance guarantee if the project could not move forward for that reason. Upon a motion by Mr. Donoho, seconded by COMMISSION RELEASED MONROE PARK Mr. Faccenda and unanimously carried, the ASSOCIATED FROM THEIR OBLIGATIONS Commission released Monroe Park UNDER THE ACCEPTED BID Associates from their obligations under the accepted bid and authorized the ret rn of the performance guarantee. Upon a motion by Mr. Faccenda, seconded by Mr. Piasecki and unanimously carried, the Commission accepted Briarwood Development Company's proposal for Parcels M2 -13, M2 -14, M2 -15, M2 -16, M2-17, M2 -18 and Parcels M9 -1, M9 -2, M9-3, M9 -4, M9 -5, M9 -6, M9 -7, M9 -8, M9 -9, M9-:.O, M9 -11, M9 -12, M9 -13, M9 -14, M9 -16, M9-17, M9 -18 in the South Bend Central Development Area, contingent upon Bri rwood's ability to secure Affordable Housing Tax Credits and upon acceptance by the Redevelopment Commission of an acceptable design and site plan. COMMISSION ACCEPTED BRIARWOOD DEVELOPMENT COMPANY'S PROPOSAL FOR PARCELS M2 -13, M2 -14, M2 -15, M2 -16, M2 -17, M2 -18 AND PARCELS M9 -1, M9 -2, M9 -3, M9 -4, M9 -5, M9 -6, M9 -7, M9 -8, M9 -9, M9 -10, M9 -11, M9 -12, M9 -13, M9 -14, M9 -16, M9 -17, AND M9 -18 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA, CONTINGENT UPON BRIARWOOD'S ABILITY TO SECURE AFFORDABLE HOUSING TAX CREDITS AND UPON ACCEPTANCE BY THE REDEVELOPMENT COMMISSION OF AN ACCEPTABLE DESIGN AND SITE PLAN South Bend edevelopment Commission Regular Mee ing - September 27, 1991 5 a. Mrs Kolata noted that Mr. Herceg's proposal was received shortly after the September 13 Commission meeting. The proposal is to perform a Phase I environmental site assessment on a number of Droperties in the 1200 Block of West Was ington. We anticipate that some of the properties will require a Phase II ass ssment. The proposal outlines the typ s of work to be done in each phase. Phase II may include removal of tanks and testing of the ground under the tanks. The Phase I scope of services will be completed for a lump sum of $25,000 with any additional work required billed at a rate of time and materials. The technical services to be performed in Phase II will be billed at a rate of time and materials (approximately $19,000 - $25 000 for a November 1 completion date, or 28,000 - $35,000 for an October 15 com letion date). The removal of the tan cs will cost between $8,000 and $12,000. Mrs Kolata noted that the completion dat s were conditional on the proposal bei g approved by September 20. The sta f authorized Mr. Herceg to proceed witi the contract and would like the con ract to be ratified at this time. Ms. Auburn declared a conflict of int rest on this item. Upon a motion by Mr. Faccenda, seconded by 14r. Donoho and unanimously carried, the Commission approved the proposal from Ken Herceg and Associates to perform environmental assessment in the West Was ington /Chapin Development Area for the costs listed above and ratified staff aut orization to proceed. Ms. Auburn -7- COMMISSION APPROVED THE PROPOSAL FROM KEN HERCEG AND ASSOCIATES TO PERFORM ENVIRONMENTAL ASSESSMENT IN THE WEST WASHINGTON /CHAPIN DEVELOPMENT AREA FOR THE COSTS LISTED ABOVE AND RATIFIED STAFF AUTHORIZATION TO PROCEED South Bend edevelopment Commission Regular Meeting - September 27, 1991 6 a. Timothy D. Hancz TDH Services, Inc. $30,784.00* 1508 S. Scott *includes $1,615.00 contingency and fees $ 8,500.00 (Public) $22,284.00 (Private) Nic olas and Nicholas Kenkel $16,748.00* $ 7,500.00 (Public) Maq Ann Kenkel $ 9,248.00 (Private) 421 N. Blaine *includes $1,242.00 contingency and fees Mrs Kolata noted that the residence at 1508 S. Scott is a one -unit, three-bedroom, home. Since the owner is also the contractor, it is necessary to approve both the loan and the proposal. Upon a motion by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the Cominission approved a $8,500.00 loan in connection with the Rental Rehab Program for property located at 1508 S. Scott. Upon a motion by Mr. Combs, seconded by Mr. Faccenda and unanimously carried, the Cormnission approved the proposal of $30,784.00 for rehab of the property located at 1508 S. Scott. Mrs Kolata noted that the property located at 421 N. Blaine is a one -unit, two bedroom home. Since the owner is also proposing to the the contractor, it is again necessary to approve the pro osal also. Upon a motion by Mr. Faccenda, seconded by Mr. Combs and unanimously carried, the Cormnission approved a $7,500.00 loan in connection with the Rental Rehab Program for property located at 421 N. Blaine. -8- COMMISSION APPROVED THE $8,500.00 LOAN IN CONNECTION WITH THE RENTAL REHAB PROGRAM FOR PROPERTY LOCATED AT 1508 S. SCOTT COMMISSION APPROVED THE PROPOSAL OF $30,784.00 FOR REHAB OF THE PROPERTY LOCATED AT 1508 S. SCOTT COMMISSION APPROVED A $7,500.00 LOAN IN CONNECTION WITH THE RENTAL REHAB PROGRAM FOR PROPERTY LOCATED AT 421 N. BLAINE South Bend edevelopment Commission Regular Mee ing - September 27, 1991 6. NEW BUS NESS (Cont.) a. con�imued... 10 Upon a motion by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the Cormnission approved the proposal of $16,748.00 for rehab of the property located at 421 N. Blaine. Ms. Auburn asked Mr. Leverman how he felt about the Rental Rehab Program in general and what recourse the Commission has if the properties are not kept up once they are rehabilitated. Mr. Leverman res onded that, since the 10°s payment com s up for waiver each year, and one of the conditions of the Rental Rehab Pro ram to qualify for waiver is that the pro erty meet code requirements, the wai er is motivation for the owner to k the property up. Mrs Kolata reported that the staff has rev'ewed the proposal of the South Bend Tribune to build a 25,000 sq. ft. expansion on the cleared 16,345 sq. ft. site. The total investment would be approximately $10,000,000, evenly divided between building construction and new equ'pment. They propose to expand their fir 5t floor production facilities and sec nd floor office space to greatly enh nce their production process. They wilL require that the City vacate the exi ting north /south alley for one -half blo k north of Colfax Avenue. The bui ding exterior materials proposed (br'ck, limestone, granite) are appropriate for downtown new con truction. The staff feels that this is very fine proposal and recommends acc pting it. Mr. IFaccenda and Ms. Auburn declared a conflict of interest on this item. COMMISSION APPROVED THE $16,748.00 PROPOSAL FOR REHAB OF THE PROPERTY LOCATED AT 421 N. BLAINE South Bend edevelopment Commission Regular Mee ing - September 27, 1991 6. NEW BUSINESS (Cont.) b. contimued... c. Upon a motion by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the Conunission accepted the proposal from the South Bend Tribune for part of Parcel C27-7 in the South Bend Central Dev lopment Area. Mr. Faccenda and Ms. Aub rn abstained. Mrs Kolata noted that the asbestos rem val in the building is under way and the contract for demolition has been awa ded by the Board of Public Works. Dem lition can begin as soon as the asb stos removal is completed. Mrs Kolata noted that Resolution No. 101 amends the South Bend Central Dev lopment Area Development Plan by add'ng one parcel to the acquisition lis That parcel is the parking lot adj cent to the former Senor Kelly's res aurant. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission accepted Resolution No. 1019 for filing and set 10:00 A.M., October 11, 1991 for a Public Hearing on Res lution No. 1019. d. Co iss Res lut ac isi Cor idc Dom in. e. 6.d. was removed from the agenda. -10- COMMISSION ACCEPTED THE PROPOSAL FROM THE SOUTH BEND TRIBUNE FOR PART OF PARCEL C27 -7 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA COMMISSION ACCEPTED RESOLUTION NO. 1019 FOR FILING AND SET 10:00 A.M., OCTOBER 11, 1991 FOR A PUBLIC HEARING ON RESOLUTION NO. 1019 ITEM 6.D. WAS REMOVED FROM THE AGENDA South Bend Regular Meei 6. NEW BUS: e. coni 7 8 elopment Commission - September 27, 1991 (Cont.) Mrs Kolata noted that there are seven leases, all similar. They are for the sur ace parking lots on Washington between Michigan and St. Joseph Streets; at Main and Western; and Michigan Street, known as the Baer's lot; and for the four storefronts in the State Theatre. The leases are with Center City Associates and the rent is $1.00. Provisions in the leases include that CCA may not sublease the properties without the approval of the Commission and that all lease terms must carry forward in a sublease. The leases provide for 30 -day termination notice. The term of the leases is September 1, 1991 to December 31, 1991, renewable yearly. The leases for the parking lots spell out how the money may be used. A separate document with CCA spe is out how the rent from the State Theatre storefronts may be used. The leases are substantially the same as tho a we have had with CCA for these pro erties in the past. Upoil a motion by Mr. Faccenda, seconded by Mr. Combs and unanimously carried, the Commission separately approved the leases for C4 -3 and C4 -30, C9 -2, C8 -7 and C8 -9, and the four storefronts in the State The tre, all in the South Bend Central Dev lopment Area. Mrs. Ko ata reported that we are optimistic that th demolition of the Transwestern Buildin will resume the week of October 7, 1991. The nex Regular Meeting of the Redevelopment Commiss on is scheduled for October 11, 1991, at 10:0 A.M. -11- COMMISSION APPROVED THE COMMERCIAL LEASES WITH CENTER CITY ASSOCIATES FOR PARCELS C4 -3 AND C4 -30, C9 -2, C8 -7 AND C8 -9 AND THE FOUR STOREFRONTS IN THE STATE THEATER, ALL IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA PROGRESS REPORTS NEXT COMMISSION MEETING South Bend edevelopment Commission Regular Meeting - September 27, 1991 There b ing no further business to come before he Commission, Mr. Piasecki made a motion hat the meeting be adjourned. Mr. Faccendi seconded the motion and the meeting was adj urned at 10:50 A.M. Paula 1. Auburn, President -12- ADJOURNMENT Ann t. Kolata,' Director