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Home My WebLink AboutRM 11-22-91November 22 10:00 A.M. Presiding O 1. 2. SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING 1991 ficer: Ms. Paula N. Auburn President 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 Mr. K. C. Pocius, Economic Dev. Specialist Mr. David Norris, Economic Dev. Specialist News Media: Mr. James Wensits, South Bend Tribune Mr. Thom Howell, U -93 Others: Ms. Katherine Humphreys, City Controller Mr. Carter Wolf, Center City Associates Mr. Sean Coleman, South Bend Common Council Mr. Ed Davis Ms. Bernice Ramsamooj Ms. Vicki Black Ms. Margaret Woods Ms. Aub rn announced that the Executive Session held prior to the meeting would be continu d following adjournment of the Regular Meeting. a. 0 Upon a motion made by Mr. Piasecki, seconded by Mr. Faccenda and unanimously car3.7ied, the minutes of the Regular Mee ling of Friday, November 8, 1991, were app oved. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, NOVEMBER 8, 1991 South Bend Redevelopment Commission Regular Meeting - November 22, 1991 2. APPROVAL OF MINUTES (Cont.) 3 b. continued... Upon a motion made by Mr. Piasecki, seconded by Mr. Faccenda and unanimously carried, the minutes of the Special Mee ing of Tuesday, November 12, 1991, wer approved. Federal Express Tri -County News Equipment Services General Fund United Parcel Service Federal Express Petty Cash Columbus Housing Authority Michie Company Equipment Services General Fund Total Admin 1991 Warner & Sons Abstract: & Title Corporation St. Joseph Title Corporation Indiana Michigan Power Hobert Early Shelton St. Jos ph Title Corporation Warner nd Sons Norther Indiana Public Service Co. Total Studebaker Bond Lawson isher Associates L.L. Ge ns & Sons, Inc. Tec Ser a Environmental, Inc. Thomas eneral Construction Total T I.F. General Acct. GRAND TOTAL -2- COMMISSION APPROVED THE MINUTES OF THE SPECIAL MEETING OF TUESDAY, NOVEMBER 12, 1991 $ 22.50 59.61 117.15 306.18 13.00 15.50 43.05 35.00 12.00 57.15 306.18 $ 987.32 $ 62,483.40 100.00 225.00 89.94 3,350.00 75.00 189,788.15 39.66 $256,151.15 $ 1,209.00 32,038.67 665.00 560.00 $ 34,472.67 $291,611.14 South Bend Redevelopment Commission Regular Meeting - November 22, 1991 3. APPROVAL OF CLAIMS (Cont.) Upon a otion made by Mr. Combs, seconded by Mr. Pia ecki and unanimously carried, the Commiss on formally approved the claims submitt d November 13 and November 20, 1991. 4. COMMUNICATIONS There were no communications. 5. OLD BUSINESS There was no old business. 6. a. 5 WOO -.17, WZO -6V, Wuo -60, 8 -28, W58 -29, W58 -30, W58 -31e 8 -33, W58 -34, W58 -35, W58 -36, 8 -38, W58 -42, W64 -1, W64 -2, -4, W64 -5, W64 -6, W64 -7, W64- -10, W64 -11, W64 -12, W64 -13 i �aL,�,�r.M �r_!''h nr�in Tlctrcl nr�mcnt Mr. Norris summarized the staff report which is attached to these minutes. The only bidder for the property was South Bend Heritage Foundation (SBH) who offered $64,750, the minimum offering price established by the Commission. SBH proposes to construct multi - family residential units whose design will be compatible with the neighborhood. They propose to construct 36 two bedroom units and 29 three bedroom units. The exterior will be vinyl sided with wood fascia and trim. Their have received Low Income Housing Tax Credits and for the next fifteen years will be required to rent to families whose income does not exceed 60& of median income in South Bend. The West Washington- Chapin Design Review Committee has met and approved the design of he project. Construction will begin in arch or April 1992 and will be com lete approximately May 1993. -3- COMMISSION FORMALLY APPROVED CLAIMS SUBMITTED FOR PAYMENT NOVEMBER 13 AND NOVEMBER 20, 1991 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend edevelopment Commission Regular Mee ing - November 22, 1991 6. NEW BUSINESS (Cont.) a. continued... Thelstaff recommends accepting the Mr. Piasecki expressed concern that this nice new project would be surrounded by deteriorating neighborhood. Mrs. Kolata responded that there are existing loan programs available to property owners in the West Washington- Chapin Development Area to enable the owners to rehabilitate their properties. A considerable amount of money has been set aside for West Washington housing in 1992. It is hoped that a sizable development of this kind would be the catalyst for further development and rehabilitation in the neighborhood. Upon a motion by Mr. Combs, seconded by Mr. Piasecki and unanimously carried, the Commission approved the proposal from South Bend Heritage Foundation for Parcels W58 -19, W58 -20, W58 -26, W58 -27, W58.28, W58 -29, W58 -30, W58 -31, W58 -32, W58.33, W58 -34, W58 -35, W58 -36, W58 -37, W58 38, W58 -42, W64 -1, W64 -2, W64 -3, W64-4, W64 -5, W64 -6, W64 -7, W64 -8, W64 -9, W64 10, W64 -11, W64 -12, W64 -13 in the West Washington- Chapin Development Area with the stipulation that certain issues, including, but not limited to, environmental issues, timetables, title iSSALes, and partnership /syndication iss es, must be settled, and authorized sta f to continue to negotiate on these and other outstanding issues. Mrs Kolata noted that there were $1, 20,000 of Cumulative Sewer funds that -4- COMMISSION APPROVED THE PROPOSAL FROM SOUTH BEND HERITAGE FOUNDATION FOR PARCELS W58 -19, W58 -20, W58 -26, W58 -27, W58 -28, W58 -29, W58 -30, W58 -31, W58 -32, W58 -33, W58 -34, W58 -35, W58 -36, W58 -37, W58 -38, W58 -42, W64 -1, W64 -2, W64 -3, W64 -4, W64 -5, W64 -6, W64 -7, W64 -8, W64 -9, W64 -10, W64 -11, W64 -12, W64 -13 IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA WITH THE STIPULATION THAT CERTAIN ISSUES, INCLUDING, BUT NOT LIMITED TO, ENVIRONMENTAL ISSUES, TIMETABLES, TITLE ISSUES, AND PARTNERSHIP/ SYNDICATION ISSUES, MUST BE SETTLED, AND AUTHORIZED STAFF TO CONTINUE TO NEGOTIATE ON THESE AND OTHER OUTSTANDING ISSUES South Bend edevelopment Commission Regular Meeting - November 22, 1991 6. NEW BUSINESS (Cont.) b. continued... wer spent when the site was being pre ared for the New Energy plant. Those are expenditures which can be reimbursed fro tax increment in the area. Ms. Katherine Humphreys, Controller, announced that the City intends to use repayment from the Rum Village tax increment to address the flooding problem in Bowman Creek and in the Chippewa area. The Commission is being asked to reimburse the City's Cum Sewer Fund in the amount of $260,000. The City will then ask the Common Council to appropriate the money for those uses. $221,000 will be used to dig out Bowman Creek and put in a concrete bottom. $24,000 will be used for drainage improvements and construction of a retention basin in the Chippewa area. The remainder will be used for eng'neering. Mr. Coleman asked that Vicki Black and Margaret Woods be recognized for leading the crusade to find a solution to the Bo an Creek problem. Upor. a motion by Mr. Faccenda, seconded by Mr. Combs and unanimously carried, the Conpission approved Resolution No. 1028 authorizing reimbursement to the City of South Bend for expenditures made within the Rum Village Industrial Park. C. Uomn Arox in E Deve Mrs. two samr bui ] $4,9 Cone for Kolata noted that we have received proposals for doing borings and les in the former South Bend Foundry ding. The proposal from EIS is for 00 - $5,000. ATEC Environmental ultants has proposed to do the work $8,550. -5- COMMISSION APPROVED RESOLUTION NO. 1028 AUTHORIZING REIMBURSEMENT TO THE CITY OF SOUTH BEND FOR EXPENDITURES MADE WITHIN THE RUM VILLAGE INDUSTRIAL PARK South Bend edevelopment Commission Regular Mee ing - November 22, 1991 6. NEW BUSINESS (Cont.) C. contiinued... Mr. Pocius explained that this testing is a follow-up to the visual testing done earlier. There was some staining on the floor and some cracks in the floor, indicating that some contaminants may h ve seeped into the ground beneath the flo r. Mr. Pocius noted we have worked with both of these firms in the past and have been satisfied with their work. Based on the pro osed fees, the staff recommends accepting the proposal of EIS. Upon a motion by Mr. Donoho, seconded by COMMISSION ACCEPTED THE PROPOSAL Mr. Piasecki and unanimously carried, the FROM EIS IN AN AMOUNT NOT TO ComOLission accepted the proposal from EIS EXCEED $5,000 FOR ENVIRONMENTAL in an amount not to exceed $5,000 for TESTING IN BLOCK 6 OF THE environmental testing in Block 6 of the STUDEBAKER CORRIDOR DEVELOPMENT Stu ebaker Corridor Development Area. AREA Mrs Kolata explained that the Redevelopment Authority approved the Purchase Contract with Banc One at its November 15 meeting. The net interest cost on the project dropped to 6.675. The bonds ranged from 4.9°s on the short to bonds to 7.9%- on the long term bon s. The cumulative savings for this refinancing over the life of the bond is app oximately $340,000. The Addendum to the Lease acknowledges that the rental payments the Commission makes to the Authority will be on a new payment schedule based on what the bond pricing was. The payments will range fro $925,000 to about $934,000 instead South Bend edevelopment Commission Regular Mee ing - November 22, 1991 6. NEW BUSINESS (Cont.) d. continued... e. of $1,000,000 per year the Commission has been paying. The Addendum to the Lease takes effect on the date the bonds are sold, approximately December 4, 1991. The proceeds from the bond will be put into an irrevocable escrow until the existing bonds are redeemed, approximately January 7, 1992. We decided not to notify the current bond holders of our intent to redeem until we had closed on the refinanced bonds. The efore, there will be about one month dur ng which we have two outstanding Mr.�Faccenda declared a conflict of int rest on this item. Upon a motion by Mr. Donoho, seconded by Mr. Combs and unanimously carried, the Commission approved Resolution No. 1029 app37oving the execution of an Addendum to the Lease dated as of June 1, 1988 between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority for the Stanley Cov leski Regional Stadium Facility. Mr. Fac enda abstained. Mrs Kolata noted that Resolution No. 1030 repeats the Commission's intention to levy the taxes necessary to make the payments and sets up funds for this bond. Mr.�Faccenda declared a conflict of int rest on this item. -7- COMMISSION APPROVED RESOLUTION NO. 1029 APPROVING THE EXECUTION OF AN ADDENDUM TO THE LEASE DATED AS OF JUNE 1, 1988 BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE SOUTH BEND REDEVELOPMENT AUTHORITY FOR THE STANLEY COVELESKI REGIONAL STADIUM FACILITY South Bend i Regular Meei 6. NEW BUS: e. coni Upor Mr. Comr este in ( June Add( 199: Comr Red( absi 7. PROGRES: 8. elopment Commission - November 22, 1991 (Cont.) a motion by Mr. Donoho, seconded by Piasecki and unanimously carried, the ission approved Resolution No. 1030 blishing certain funds and accounts onnection with the Lease dated as of 1, 1988 and as amended by an ndum thereto dated as of November 1, between the South Bend Redevelopment ission and the South Bend velopment Authority. Mr. Faccenda ained. Mrs. Ko ata reported that on November 20 the staff sent out a Request for Expression of Interes (RFEI) for the Airport Economic Development Area golf course and business campus project to a large list of developers. We have asked that developers respond to us by December 20. The RFEI presents our thoughts on the project area and asks for a response to a number of questions. We want to get a marketplace reaction to what we are proposing for the area. The RFEI also asks if they are interested in bidding on the property. We will be working over the next month to develop the bid packet so that it can go out for bid in early January. Mr. Dav s asked about the status of the Commiss on's intent to purchase the parking lot next to the former Senor Kelly's restaurant. Mrs. Kolata responded that the appraisal is in and Cleo Hickey is working on the rev ew appraisal. We will be identifying and app opriating money in the near future. Realist cally, a purchase offer will not be sent until after the first of the year. The Co ission rescheduled the December meeting to December 6, 1991 at 10:00 a.m. and Dec mber 20, 1991 at 10:00 a.m. COMMISSION APPROVED RESOLUTION NO. 1030 ESTABLISHING CERTAIN FUNDS AND ACCOUNTS IN CONNECTION WITH THE LEASE DATED AS OF JUNE 1, 1988 AND AS AMENDED BY AN ADDENDUM THERETO DATED AS OF NOVEMBER 1, 1991 BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE SOUTH BEND REDEVELOPMENT AUTHORITY PROGRESS REPORTS NEXT COMMISSION MEETING South Bend edevelopment Commission Regular Mee ing - November 22, 1991 E There being no further business to come before the Commission, Mr. Combs made a motion that the meeting be adjourned. Mr. Piasecki seconded the motion and the meeting was adjourned at 10:30 a.m. Paula N, Auburn, President ADJOURNMENT Ann E. Kolata, Director