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Home My WebLink AboutRM 10-25-91October 25, 10:00 A.M. Presiding O 1. 2. 3 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. Sandy Combs, Assistant Secretary Members Absent: Mr. Michael Donoho, 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. John Fonash, Economic Dev. Specialist Bureau of Housing Staff: Mr. Ted Leverman, Assistant Director News Media: Mr. Thom Howell, U -93 Mr. Dave Rumbaugh, South Bend Tribune Others: Mr. David Ray, South Bend Tribune Mr. Tom Brunner, Baker & Daniels Ms. Micki Boulac, Baker & Daniels Mr. Patrick Carrico, Master Distributors, Inc. Mr. Jim Cronk Upon a otion made by Mr. Piasecki, seconded by Mr. ombs and unanimously carried, the minutes of the Regular Meeting of Friday, October 11, 1991, were approved. Patrick Strickler Ann Kol to Caterinj by Billie Inc. -1- CMVUSSION APPROVED 1 11 OF I RBMAR MEETIM OF 11 OCIOBER 11, 1991 $ 1,174.54 14.92 28.50 South Bend Regular Mee 3 velopment Commission - October 25, 1991 CLAIMS (Cont.) continued... Amacom American Management Association South B nd Water Works America Planning Association South Bind Drafting Supply TOTAL ADMIN 1991 Warner & Sons G.B.R. Inc. Indiana Michigan Power Company Northern Indiana Public Service Company South Bond Water Works South Bond Tribune South Bond Tribune Breden Electrical and Heating & Air Abstract: & Title Corporation Baker & Daniels Federal Express G.B.R. nc. Jerome ichaels Peirce Associates Robert orrest Robert Miller & Milliken Apartments Robert Miller Eric McDaniel Darril 6ebury & Milliken Construction TOTAL STUDEBAKER BOND 1991 Lawson-Fisher Associates Ken Her deg & Associates Richard McCloskey Ralph D Lauver T.I.F. 1988 Daniel 1 TOTAL SBCDA TIF Pierotti & Company TOTAL TIF 1988 GRAND TOTAL -2- 45.00 1,348.80 100.00 114.50 $ 2,826.26 $ 56,092.69 1,640.00 1.26 87.18 248.86 62.41 12.34 45.00 90.00 55.50 15.50 1,915.00 425.00 400.00 5,500.00 1,950.00 2,055.00 5,500.00 2.040.00 $ 78,135.74 $ 8,026.06 4,000.00 2,000.00 2.000.00 $ 16,026.06 $ 2,167.00 $ 2,167.00 $ 99,155.06 South Bend Redevelopment Commission Regular Meeting - October 25, 1991 3. APPROV OF CLAIMS (Cont.) Ms. Auburn declared a conflict of interest on the Claims. Upon a motion made by Mr. Combs, seconded by Mr. Pia ecki and unanimously carried, the Commis on formally approved the claims submitt d October 16 and October 23, 1991. Ms. Aub rn voted present. 4. 5. 6. There w6re no communications. There wis no old business. a. M 1 1 = OCIOBER 16 AND OCIOBER 23, 1991 THERE WERE NO CCHIMCATIONS ICI■ F 7- • : jkjj Timothy D. Hancz TDH Services $43,500.00* 445 S. Meade *includes $2,277.60 contingency & fees Mrs Kolata noted that the property at 445 S. Meade is a two -unit structure. The Rental Rehab Loan is a forgivable loa at the rate of 10%- a year for ten yea s as long as the owner continues to Mee the requirements of the Rental Rehab Mr. Piasecki stated that he would like to see some of the results of the Rental Rehab loans approved by the Commission. Mrs Kolata responded that Mr. Leverman could provide pictures of the completed projects and the Commission could take an occasional tour of the properties. In the meantime, she asked Mr. Leverman to prepare a list of properties renovated thr ugh the program. -3- $17,000.00 (Public) $26,510.00 (Private) South Bend Regular Mee 6. NEW BUS a. con (,*I C. elopment Commission - October 25, 1991 (Cont.) inued... Upon a motion by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the Cormnission awarded a Rental Rehab loan in the amount of $17,000 to Timothy D. Hancz for property located at 445 S. Meade. Upon a motion by Mr. Combs, seconded by Mr. Piasecki and unanimously carried, the Commission awarded the contract in the amount of $43,500 to TDH Services in connection with the Rental Rehab Program. •• I 1 • • 1.1 • • • 6111 . .. � . � �1' •I I • I I U ARUN 01 I Den is & South Bend Roofing $24,278.00* Janice Papczynski and Siding 1215 E. Calvert *includes $1,329.50 contingency & fees Mrs Kolata noted that the property is a two unit structure. Upon a motion by Mr. Combs, seconded by Mr. Piasecki and unanimously carried, the Commission approved a loan in the amount of S12,139 to Dennis & Janice Papczynski for property located at 1215 E. Calvert. Mr. Pocius explained that Resolution No. 1021 sets the market price of eleven properties in the Studebaker Corridor Development Area. One parcel has a small accessory building. The rest are vacant lan . Several are former railroad rig is -of -way which we are acquiring to com lete assemblage of blocks. -4- $12,139.00 (Public) $12,139.00 (Private) CESSION APPROVED A LOAN IN THE AMJUN!' OF $12,139 TO DENNIS AND JANICE PAPCZYNSKI FOR PROPERTY LOCATED AT 1215 E. CALVERT South Bend edevelopment Commission Regular Mee ing - October 25, 1991 6. NEW BUSXNESS (Cont.) c. continued... Cep Upon a motion by Mr. Piasecki, seconded CMIESSION APPROVED RESOLUTION by Mr. Combs and unanimously carried, the NO. 1021 RELATED TO ACQUISITION Conunission approved Resolution No. 1021 OF PROPERTY IN THE STUDEBAKER related to acquisition of property in the CORRIDOR DEVELOPI= AREA BY Studebaker Corridor Development Area by NEW DCHAIlV Emi ent Domain. Mr. Fonash gave the staff report regarding the tax abatement. The petitioner, Frank D. Darnell, is the owner of the property at 4100 Technology Drive and the business of Richmond Wholesale, Inc. which is located there. Also sharing space at that location is Master Distributors, Inc. In a joint venture between Richmond Wholesale, Inc. and Master Distributors, Inc., the petitioner proposes to purchase 5.6 acres adjacent to the present facility and erect an approximately 52,704 sq. ft. warehouse, order processing and shipping center. The new construction would be an extension of the existing facility. It would serve to consolidate warehouse locations in Niles, Michigan and Kokomo, Indiana to South Bend. New warehousing technology will be implemented to maintain competitiveness in the indILStry. The total estimated cost of the expansion project is $1,000,000, although the market value of the property is only expected to increase app oximately $700,000 as a result of the exp nsion. The project will create fifteen new permanent full -time jobs in the first year, representing an annual payroll of $270,000 and will maintain seventy -5- South Bend edevelopment Commission Regular Mee ing - October 25, 1991 6. NEW BUSXNESS (Cont.) d. continued... e. exi ting permanent full -time jobs and ten exi ting permanent part -time jobs with an ann al payroll of $1,200,000. The property is properly zoned for the proposed use. The property is not located in a Tax Abatement Impact Area, but is located in a Tax Incremental Financing Allocation Area. The pet tioner qualifies for six years of rea property tax abatement. Based on an estimated increased market value of $700,000, and an increased assessed value of $255,000, the estimated amount of taxes without abatement would be $184,400. With abatement taxes are est mated to be $76,219. Therefore, the cos of the abatement is estimated to be $10 ,181. Upon a motion by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the Commission approved Resolution No. 1022 approving an application for real property tax deduction for property loc ted at 4202 Technology Drive (Frank Dar ell Warehouse). Ms. Manier explained that the alley to be vacated is the southern half of the north-south alley immediately west of the Colfax Theater, separating it from the South Bend Tribune building. If it is vacated, it will revert to each of the adjoining property owners. A portion would belong to the South Bend Tribune and a portion would belong to the Colfax Theater site. We are asking that the alley be vacated to facilitate the development plans presented to the Conpission by the Tribune for the Colfax Theater site. We have agreed to file the petition in anticipation of conveying the pro erty. CCFMSSION APPROVED RESOLUTION NO. 1022 APPROVM AN APPLICA 'I] •• • PROPERTY 1DEDUCTION FOR PROPERTY LOCATED AT 4202 ELL WAREHOUSE) South Bend Redevelopment Commission Regular Meeting - October 25, 1991 6. NEW BUSINESS (Cont.) e. continued... f. Mr. Combs noted that the petition states tha the alley is east of Main Street. It s actually west of Main Street. Mr. Piasecki asked about the utilities located beneath the alley. Ms. Manier responded that the vacation would be made sub ect to all existing utility rights. Once the alley is vacated the utilities are allowed to keep their utilities within that area, but must make their own agreements with the owners. Mr. Ray, representing the South Bend Tribune, indicated that they intend to reroute the utilities. Upon a motion by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the Commission approved the Petition to Vacate Public Right -of -Way as corrected. Ms. Manier explained that in April and August the Commission sub- leased certain Mon37oe Park properties to the Board of Public Works. The further intent is to sub lease them to the Housing Development Corporation for rehabilitation into affordable housing. The lease between the Commission and Redevelopment Authority requires that the Commission and the Authority approve any other sub leases. The Authority has already app oved the sub - leases to the Housing Development Corporation. The terms in these sub- leases are the same as the previous sub- leases. The lease with the Housing Development Corporation is for a period of 22 years. It is a lea e- purchase, so the Housing Dev lopment Corporation will ultimately -7- CaAMISSION APPROVED THE PETITION TO VACATE PUBLIC RIGHT -OF -WAY AS CORR.ECI'ED South Bend edevelopment Commission Regular Mee ing - October 25, 1991 6. (Cont.) f. continued... a own the properties. It calls for redevelopment of the properties according to the plans approved by the Design Review Committee. It is the intent to lease the properties to low and moderate inc me people. Mr. Piasecki declared a conflict of in rest due to his membership on the boa d of the Housing Development Co oration. Ms.1Auburn transferred the chair to Mr. Pia ecki. Upon a motion by Ms. Auburn, seconded by Mr. Combs and unanimously carried, the Commission approved Resolution No. 1023 approving and consenting to the Sub -Lease of Real Property by the City of South Ben , Indiana, to the Housing Development Co oration of St. Joseph County, Inc. Mr. Piasecki voted present. Mr.IPiasecki transferred the chair to Ms. Ms. Manier noted that this is the standard agreement, structured to meet the terms of the proposal by the Tribune for the site. The terms of the agreement include vacation of the alley adjacent to the theater. The proposed closing date is ' anuary 1992. The proposed project completion time is 20 months from January 1992. Should the Tribune petition for real and /or personal property tax abatement and should the Commission app ove that abatement, the Commission wou d support the petition before the Co on Council. ME CESSION APPROVED RESOLUTION NO. 1023 APPROVM AMID CONSENITM TO THE SUB -LEASE OF REAL PROPERTY BY THE CITY OF SOUTH BEND, I NDINa, TO THE HOUSING DEVELOFY T!' CORPORATION OF ST. JOSEPH COUNTY, INC. South Bend edevelopment Commission Regular Mee ing - October 25, 1991 6. NEW BUSINESS (Cont.) g. continued... h. Ms. Manier noted that the Tribune has reviewed the contract and has indicated that they are satisfied with its terms, but have not yet signed it. They would like the Commission to approve it and aut orize the staff to make minor cor lections to it. upon a motion by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the Commission approved the Contract for Sale of and for Private Development in the Sou :h Bend Central Development Area and aut orized the staff to make minor cha aes. Mrs Kolata noted that the Commission, at its meeting on October 11, authorized publication of a legal notice on October 18 and October 25, 1991 with receipt of bids to be November 8. However, due to a staff error, we did not get the legal not ce to the paper and missed one week of publication. We would like to publish on October 25 and November 1 and hold a special meeting on November 12 for rec ipt of bids. by pub dis 10 of a motion by Mr. Piasecki, seconded r. Combs and unanimously carried, the ission ratified the staff action to ish legal notice regarding osition of property.in the West ington- Chapin Development Area on ber 25 and November 1, 1991 and set 0 a.m., November 12, 1991 for receipt ids. WA COMMISSION APPROVED 1 CONTRACT FOR SAI OF LAND FOR PRIVATE DEVELOP= Ilq TBE • BEND CENTRAL DEVELOP= AREA A I■ ' •' i1E■ STAFF TO MAKE Y=R CBANGES CESSION RATIFIED STAFF ACTION TO PUBLISH LEGAL NOTICE REGARDING DISPOSITION OF PROPERTY IN THE WEST VASHIlN=N- CEAPIN DEVELOPY= AREA ON OCTOBER 25 AMID NOVEMBER 1, 1991 AND SET' 10:00 A.M. , NOVEMBER 12, 1991 FOR RECEIPT OF BIDS South Bend edevelopment Commission Regular Mee ing - October 25, 1991 6 7 8. i (Cont.) Mrs Kolata explained that Resolution No. 1024 adds a number of properties to the acquisition list of the Studebaker Corridor Development Plan. All of the properties belong to Calvin Murdock or Murdock Construction Company. Since Mr. Murdock has revised his plans and decided not to build an office in that location, we propose to acquire the property. We will work with Mr. Murdock to relocate his construction yard. Upon a motion by Mr. Piasecki, seconded COMMISSION ACCEPTED RESOLUTION by Mr. Combs and unanimously carried, the NO. 1024 FOR FILING AND SET 10:00 Commission accepted Resolution No. 1024 A.M., NOVEMBER 12, 1991 FOR for filing and set 10:00 a.m., November PUBLIC HEARING ON RESOLUTION 12, 1991 for Public Hearing on Resolution NO. 1024 No. 1024. Mrs. Ko ata reported that the Housing Development Corporation will be holding a workshop on October 28 and 29 on how to develop and set up a housing development corporation. The National Association for Housing and Redevelopment Officials is co -spon oring the workshop. Mrs. Ko ata reported that demolition has begun o4 the middle portion of the Transwe tern building. Mrs. Ko ata also reported that the Redevelopment Authority is proceeding with the refinancing of the Coveleski Stadium which will result in a net savings of at least $250,000 in interest. The nex Regular Meeting of the Redevelopment Commission is scheduled for Friday, November 8, 1991 at 10:00 a.m. -10- u�IS3 i 0 uiDIaIMN:ei South Bend edevelopment Commission Regular Mee ing - October 25, 1991 9. There being no further business to come before the Redevelopment Commission, Mr. Combs made a motion that the meeting be adjourned. Mr. Piasecki seconded the motion and the meeting was adjourned at 10:50 a.m. Paula N Auburn, President Ann E. Kolata, Director -11-