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HomeMy WebLinkAboutSM 11-12-91November 12 10:00 A.M. Presiding O 1. 2. 3. SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL 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 C unsel: Mr. Richard A. Nussbaum III Redevel pment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Mr. K. C. Pocius, Economic Dev. Specialist Bureau f Housing Staff: Mr. Ted Leverman, Assistant Director News Melia: Mr. Thom Howell, U -93 Mr. Don Porter, South Bend Tribune Mr. Norm Stangland, WSBT -TV Mr. Carl Hargrave, WSJV -TV Mr. Kevin Freeman, WSJV -TV Ms. Anne Sherwood, WYEZ Others: Mr. Jeff Gibney, South Bend Heritage Foundation Ms. Anne Mannix, South Bend Heritage Foundation Mr. Calvin Murdock Mr. Baron Murdock Ms. Eugenia Schwartz Ms. Aub rn announced that the Executive Session held prior to the meeting would be continu d following adjournment of the Regular Meeting. There wore no minutes submitted for approval. THERE WERE NO MINUTES There w no claims submitted for approval. -1- THERE WERE NO CLAIMS South Bend Redevelopment Commission Special Meeting - November 12, 1991 4. COMMUNIIATIONS 5 There wore no communications. a. Mrs Kolata explained that Resolution No. 1027 sets the fair market value of nine properties and authorizes the staff to send purchase offers. If agreement cannot be reached within 30 days, the staff is authorized to proceed with acquisition by eminent domain. Mrsl Kolata noted that the properties include the Glo Worm, My Brother's Place, Barb & Joe's Tavern, North American Signs building, a lot owned by Western Avenue Iron and Metal, the Southern Hotel, the Borden's building, and a lot next to the Borden's building. Upon a motion by Mr. Doncho, seconded by Mr. Combs and unanimously carried, the Commission approved Resolution No. 1027 rel ted to the acquisition of property in the Studebaker Corridor Development Area by minent Domain. a. xeC 1 t or Alas zor rarcels WDo-17 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 W6411, W64 -2 W64 -3 W64 -4 W64 -5 W64- W64 7 W64 -8 W64 -9 W64 -10 W64 -11 W64 12 W64 -13 in the West Was inaton- Chapin Development Area. Mrs Kolata noted that one bid was received as of 10:00 a.m. That bid is from South Bend Heritage Foundation for a price of $64,750 for the 4.288 acres contained in the 1200 block of West Was ington. The minimum bid price for the property was $64,750. They have -2- THERE WERE NO COMMUNICATIONS COMMISSION APPROVED RESOLUTION NO. 1027 RELATED TO ACQUISITION OF PROPERTY IN THE STUDEBAKER CORRIDOR DEVELOPMENT AREA BY EMINENT DOMAIN South Bend edevelopment Commission Special Mee ing - November 12, 1991 6. NEW BUSINESS (Cont.) a. continuea... tted a deposit of 10* of their bid. Mr. Gibney explained the proposed project. South Bend Heritage has been working for two years to develop a plan for affordable housing for the 1200 block of West Washington. The project is an outgrowth of the comprehensive planning of the West Washington /Chapin Revitalization Project. They are proposing new construction, multi - family residential. There will be a total of 65 units in 29 buildings. There will be 36 two bedroom units, approximately 850 sq. feel:, and 29 three - bedroom units, approximately 1000 sq. ft. The design of the buildings will be compatible with the West Washington neighborhood with similar set - backs, side yards, front or side porches, etc. The buildings will have basements with app iance hook -ups. There will be off street parking. The total cost of the project will be $4,900,000. Since the project will use Low Income Housing Tax Credits, the project will target families with incomes at or below 60%- of the local median income. The tax credit program defines what the maximum rents can be and South Bend Heritage fee s that they can make the project work with lower rents than allowed. The housing will be available to Section 8 tenants, although it will not be exclusively for Section 8 tenants. The primary funding source for the project is the Low Income Housing Tax Credits. The project was awarded $5,000,000 in tax credits for 1991. They are in the process of selling those cre its and hope to raise $2,900,000 in equ ty investments. In addition, they rec ived $400,000 in Community Dev lopment Block Grant Funds; they have rec ived a $405,000 allocation from the .Aff rdable Housing Program; South Bend -3- South Bend edevelopment Commission Special Meeting - November 12, 1991 6. NEW BUSINESS (Cont.) a. continued... Her tage has contributed $396,000 in equ ty; and they have taken out an $82 ,000 mortgage. South Bend Heritage will hire a general contractor for the project. Construction will begin in March /April 1992 with an estimated completion date of May 1993. Since the Low Income Housing Tax Credit Pro ram requires that 10& of the project cos be invested before the end of 1991, Sou h Bend Heritage will be purchasing mat rials and appliances before that Mr. Piasecki asked if the project would be successful without tenants who use Section 8 vouchers. Mr. Gibney responded that the rents were structured separate fro Section 8. The rents are feasible on heir own. Upom a motion by Mr. Combs, seconded by Mr. Faccenda and unanimously carried, the Commission received the bid 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 Wes Washington- Chapin Development Area and referred the bid to staff for its rec mmendation at the next Commission mee ing. b. Pub: ame3 Devi Mrs itei ori4 on 1 Cor: Plai the . Kolata asked that the following 1s be entered into the record: 1) an final of the Notice of Public Hearing :he amendment to the Studebaker :idor Development Area Development 1; 2) an affidavit from Carol Smith of South Bend Tribune stating that the -4- COMMISSION RECEIVED THE BID 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 AND REFERRED THE BID TO STAFF FOR ITS RECOMMENDATION AT THE NEXT COMMISSION MEETING South Bend edevelopment Commission Special Mee ing - November 12, 1991 6. NEW BUSINESS (Cont.) b. continued... notice was published on November 1, 1991; 3) an affidavit from Cherry Jollie of the Tri County News stating that the notice was published on November 1, 1991; 4) the property owners listed on Resolution No. 1024 were sent a copy of the notice of the hearing on November 1, 1991; 5) the neighborhood associations which have registered with the Commission concerning the Studebaker Corridor Development Area wer sent a notice of the hearing; 6) as of 0:00 a.m., November 12, 1991, 0 wri ten remonstrances were received. Ms. Auburn asked if there was any objection to these items being entered into the record. There was no objection and the items were so entered. Mr. Pocius explained that Resolution No. 1024 adds a total of thirteen parcels in Block 5 of the Studebaker Corridor to the acquisition list. Block 5 is bounded by Stull, Lafayette, Broadway, and Fraziklin Streets. The properties will complete the acquisition in that block and will allow assemblage and disposition of all but the parcel on the southeast corner, which is not being acquired. The properties are owned either by Omega Properties or by Calvin and Carolyn Murdock and are presently being used for offices and for construction storage by Mr. Murdock's company. Mrs Kolata noted that the action of Resolution No. 1024 is to add the parcels to the acquisition list, with the intent of sending purchase offers at a future time, but the resolution does not aut orize purchase offers to be sent at thi time. At his time Mr. Murdock brought in a wri ten remonstrance which he indicated was brought to the office by 10:00 a.m. Mrs Kolata noted that Mr. Murdock -5- South Bend Special Mee 6. NEW BUS elopment Commission - November 12, 1991 (Cont.) b. continued... entered the meeting after 10:00 a.m. and the letter was not presented in at that time. Mrs Kolata read the letter into the rec rd. November 12, 1991 Department of Redevelopment 1200 County -City Bldg. 227 West Jefferson Blvd. South Bend, IN 46601 ATT : Ms. Ann E. Kolata Sub'ect: Resolution No. 1024 Dear Gentry: Please accept this letter as our official continuing objection to having the property owned by Omega Properties and /or Calvin and Carolyn Murdock placed on the Redevelopment acquisition list. The sub'ect property was acquired and has been in continuous use by Murdock and Sons Construction, Inc. We have made our plans known with regards to our expansion needs as it relates to the timely development of this property. Any attempt on the part of the Commission or Redevelopment to acquire this property will stifle or impede the continued growth and development of our company. Thank you for your cooperation in this regard. W. . Calvin Murdock Ome a Properties W. T. Calvin Murdock Mrs Kolata noted that the Commission pre iously changed its plans to acquire thi property because Mr. Murdock was -6- South Bend Special Mee 6. NEW BUS b. con elopment Commission - November 12, 1991 (Cont.) inued... pro Posing to build a new office at that loc tion. However, Mr. Murdock has pur hased another office building apart from this site and this property would primarily be used as a storage yard. Our con ern is that the amount of space taken for a storage yard is not in the best interest of the Studebaker Plan. That is why acquisition is being proposed. Ms.lAuburn opened the public hearing. MR. MURDOCK: Thank you very much. Again, to address the technicality of whether or not my remonstrance officially appeared at exactly 10:00 or not, I don't think it is terribly material at this time. I would like to reiterate that we have been in constant communication with Redevelopment in regards to our continuing plans to develop this property for an expansion of our existing business. We're a little shop that initially had a terrible need to expand our corporate office facilities that we had originally planned this site for. Unfortunately, the timing of the bond issue, the ultimate issuance of some contracts to demolish the existing strILCtures, kind of put us in a little bit of a timing problem. In the interim period we were able to acquire another small property that's up at the foot of Jefferson Boulevard, at 131 S. Taylor Street, which addresses our immediate co orate office needs. Additionally, we have always intended to expand our warehousing facilities, to expand our vehicle maintenance facilities. We have a 1-2,000 sq. ft. building that's physically sitting on the site down there right now. We just got the first building that was key to that construction piece demolished, I think, 30 days ago. We would certainly want to appeal to Redevelopment and the Cornniission to assist us in the -7- PUBLIC HEARING ON RESOLUTION NO. 1024 South Bend edevelopment Commission Special Mee ing - November 12, 1991 6. NEW BUSXNESS (Cont.) b. continued... lopment of this property for our ne We have some 90 - 100 full time employees. We probably do an annual payroll that's in excess of $4,000,000. And I think we are terribly essential to the economy of this community. I think to assist us in the development of our business, to potentially take property that we need to expand our business, is going to add an additional burden of accpiisition and relocation to us, and we really don't need, in a time when our business is thriving, there are others in similar businesses that are on hard times. We just acquired last week a $2,000,000 federal prison job in Terre Haute last month. We have another $2,000,000 state prison job in Carlisle, Indiana. All of which is fueled and managed logistically from South Bend. Obviously, that information is not public knowledge for everybody, but I think it is prudent for the Commission and Redevelopment to assist us. We want to do something with the property that's going to enhance the area. We don't want to do anything that will be a drag on development for future onlookers. What we have proposed, obviously, since we've got a fair corporate headquarters site right now, the centerpiece is not going to be a corporate headquarters. It's going to be basically a warehouse building. It's going to have some 4,000 to 5,000 sq. ft. of office space associated with it, so that we've got things for field operations and some minimal office area. We certainly would want to share those plans with you as they come to fruition. We do not want thiE property placed on the acquisition list because, obviously, if this property is cone, we need to go out and spend our ene gies finding more property. I don't want to go through that exercise. We I n South Bend Special Mee elopment Commission - November 12, 1991 6. NEW BUSINESS (Cont.) b. continued... like the area. It's close to our sources of supply. Logistically, it's easy for us to get to from our corporate headquarters to down there, so I would certainly ask that you Commissioners and Red velopment consider that request. I'1 certainly address questions anyone M ay have. MR. PIASECKI: Can you briefly tell us what; your plans are for the site? You did mention the office building and, at one time I remember it was supposed to be screened. MR. MURDOCK: Certainly, with regards to screening and making the property aesthetically pleasing, that's always been our intent. Particularly the concern has been for the storage yards. Obv ously, there's not a whole lot we can do to enhance what a two -by -four and what timbers look like. They're timbers. What. we have offered, and certainly, whatever our ultimate plans, would be sub ect to the Design Review Committee. We have offered plant type screening, actual fencing, whatever was desirable, as long as it did not economically burden the project, we are certainly willing to acc mmodate. MS. AUBURN: I just want to make sure I and rstand. The warehouse and storage fac lities are going to stay. You wer n't intending... MR.IMURDOCK: No we were never intending to. MR. DONOHO: I have a question. If we ac ire his property, what do we propose too with the situation he's in with the MRS, the KOLATA: The plan would be that, in short term, we would allow him to South Bend Special Me elopment Commission - November 12, 1991 6. NEW BUSINESS (Cont.) b. continued... stay there while we are helping him to find an alternative location for a yard. And we would assume it is a relocation of a storage yard. Our concern is the overall size of the site and making the besf use of the property. MR. POCIUS: The total developable site in Block 5 would be just under three acres, about 2.5 acres. And the amount of land that we are buying in those thirteen properties is approximately 65,000 sq. ft. MRS KOLATA: So, we're buying about an acre and a half from Mr. Murdock, we already have bought or are buying another acre and a half. Combined we would have a three acre site. Our concern is certainly not to do harm to the business or to Mr. Murdock, but to make a better use of that site in bringing in new jobs and bringing in new development to the area. A three acre site for a 13,000 sq. ft. warehouse and storage yard is not the bes use of the property. MR. MURDOCK: Well, we're going to do more than just the 13,000 sq. ft. warehouse building. There is also a maintenance facility there. That's another 5,000 sq. ft. building. As a mat er of fact, the foundation of that bui ding is already in place. MS. AUBURN: Well, one of the things this action does is it puts it on the acquisition list. It doesn't mean we will necessarily acquire it. I think part of what we are trying to do is to bal nce the business needs that you have alo g with what we are trying to achieve do there. 00 this MURDOCK: I understand. I guess my concern is that my business needs at point are very tangible and -10- South Bend edevelopment Commission Special Mee ing - November 12, 1991 6. NEW BUSINESS (Cont.) b. continued... measurable. The Commission's needs are somewhat speculative. At this point you don't have anybody sitting down there saying, "Gee, give me this three acre site because I'm going to do something. We' a currently doing something. I would thi k that my needs ought to have a higher precedent than the wish list. That's my concern. MR. DONOHO: Well, my concern is this came before us and was on an acquisition list some time ago. MRS KOLATA: A year ago. MR. DONOHO: We reversed that list and stated the reason for it was so that these business would stay viable and stay down there. There was a whole list. Not just these. There were others. It's confusing to me. Now we're reversing that decision again. I don't want him on the acquisition list. And then say we're going to purchase or not purchase, because that puts that property in a position where he sits in a holding pattern, because it could be acquired and it couldn't be acquired. I'm against it. I stand with my last decision. MRS KOLATA: When Mr. Murdock came bef re us a year ago, there was an office bui ding proposed as well. That was the bas :s for his receiving the tax abatement thal the City Council received. And, I thi k you even did go to Design Review, di 't you? MR ZRDOCK: I don't think you had a Des gn Review Committee meeting. MRS KOLATA: OK. But we had certainly seen plans for the office building and it was a different project. Plus, it is not simply not buying Mr. Murdock's property. It is offering for sale -11- South Bend Special Mee elopment Commission - November 12, 1991 6. NEW BUSINESS (Cont.) b. continued... property that Mr. Murdock will then bid on. Because he probably cannot do the development, if you can see the yellow pattern that's up there on the map, it is assi=ing that we will be selling add tional land and that he will be bidding on additional land. MR.�MURDOCK: We still assume that we are goi g to have that opportunity. MRS KOLATA: But it does affect how we par el out the block and how we determine wha is appropriate for storage yards. MS. AUBURN: I would suggest, with the questions that have been raised by Commissioner Donoho, that we might want to table this for further discussion and exp ore the ramifications a little bit further, and, if necessary, bring it back for action at a further meeting. I don't want any Commissioner to have to act on a resolution until all of the issues have been explored and we feel comfortable witi the decision. MR. PIASECKI: I think it would be even better for us to all take a look at it. MS. AUBURN: I've driven by it several times. It's not going to win a beauty contest. MR. PIASECKI: I still think we can vis alize it better, it that's possible. MS. AUBURN: I would say that if some of the Commissioners haven't been by there more recently, they might want to drive through and take a look at it. If none of the Commissioners object to tabling thi for some further discussion, I would rec mmend that that's the appropriate act -12- South Bend Special Mee 6. NEW BUS b. con C. II elopment Commission - November 12, 1991 (Cont.) MRS KOLATA: Are you going to close the pub is hearing, and then just table act on on the resolution? MS. AUBURN: Are there any other comments PUBLIC HEARING ON RESOLUTION fro the public? Hearing none, I will NO. 1024 IS CLOSED clo a the public hearing for whatever act on the Commission desires to take. Upon a motion by Mr. Doncho, seconded by COMMISSION TABLED RESOLUTION Mr. Combs and unanimously carried, the NO. 1024 Commission tabled Resolution No. 1024. Mrs Kolata indicated that the staff wou d meet with Mr. Murdock regarding his pla s for the property before bringing thig resolution back to the Commission. Mr. Murdock noted that the Commission has not made available the additional property in his block that he needs in order to proceed with his improvements. Mrs Kolata responded that the Commission is mot in control of all of those properties yet. Resolution No. 1027 authorizes purchase offers for some of those properties. Mrs Kolata explained that these parcels are on Hill Street, north of Washington Street and were previously sold to Karl and Patricia Schramm. For a number of reasons it is anticipated that the pro erty will be transferred to 1st Sou ce Bank. 1st Source Bank has asked tha the Commission authorize execution of i Quit Claim Deed, quit claiming any int.-rest it has in the property. -13- South Bend edevelopment Commission Special Mee ing - November 12, 1991 6. NEW BUSINESS (Cont.) 7. 8. 9. d. continued... Exe ution would not take place unless the trailsfer is actually made to 1st Source Bank. Mr Zaccenda declared a conflict of int rest on this item. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission authorized the execution of the Quit Claim Deed to 1st Source Bank for Parcels E9 -8a and E9 -8b in the South Ben4 Central Development Area subject to the bank becoming title holder. Mr. Fac enda did not vote. Mrs. Ko ata noted that it was significant that the Commission received a bid on the land in the 1200 block of West Washington. That is a much anticipated project and seems to be very well thought out. The nex Regular Meeting of the Redevelopment Commiss on is scheduled for Friday, November 22, 199 at 10:00 a.m. There being no further business to come before the Commission, Mr. Donoho made a motion that the meeting be adjourned. Mr. Combs seconded the motion and the meeting was adjourned at 10:47 a.m. Paula N & A) I � Auburn, President -14- COMMISSION AUTHORIZED EXECUTION OF A QUIT CLAIM DEED TO 1ST SOURCE BANK FOR PARCELS E9 -8A AND E9 -8B IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT Z - . Ann E. Kolat , Director