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HomeMy WebLinkAboutRM 01-10-92January 10, 1992 10:00 A.M. Presiding office 1. ROLL CAIL 2. SOUIH BEND REDEVELOPY= CCUMSSION Ms. Paula N. Auburn President 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Menbers Present: Ms. Paula N. Auburn, President Mr. Roman J. Piasecki, Vice President Mr. Michael Doncho, Secretary Ms. Charlotte Huddleston Ykmbers Absent: Mr. Philip J. Faccenda, Assistant Secretary Legal counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Mr. K.C. Pocius, Econanic Dev. Specialist Mr. John Fonash News a: Mr. Don Porter, South Bend Tribune Mr. Than Howell, U -93 Others: Mr. Robert Voss, Bangor Refrigeration Mr. Sandy Combs Ms. announced that the Executive Session held prior to the meeting would be continu�d following adjourrnnent of the Regular Meeting. a. a iJ J Upo a motion made by Mr. Piasecki, secxided by Ms. Huddleston and unanimously carried, the Minutes of the Reg ar Meeting of Friday, December 20, 199 , were approved. -1- camissION APPROVED I M2MES OF THE RESCHEDULED RESULAR E 9= OF - n •E is ER 20, South Bend Regular Nle, 2. APPROU elopment Camtission - January 10, 1992 �1CF.C'F5 (Cont.) b. continued... Llpai a motion by Mr. Donoho, seconded by COMMISSION APPROVED THE NII MES Ms. Huddleston and unaniurously carried, OF THE ANNUAL ORGANIZATIONAL the Commission approved the Minutes of MEETING OF JANUARY 2, 1992 the Annual Organizational Meeting of day, January 2, 1992. ...;• iei * « • ; Abstract. & Title Corporation $ 50.00 Center City Associates 364.33 Center Dbnagenient Corporation 99.50 Equipuent Services 33.00 Cannerc'al Office Products 17.23 Special Systems of Illinois, Inc. 5,760.00 South BEnd Drafting 63.00 Service America 79.46 Upjohn Ihstitute 21.00 VISA 261.18 TOTAL A4,EN 1992 $ 6,748.70 All -P e Electric 4,580.00 Engineering Department 9,452.82 Ken Her eg & Associates 10,850.24 Hebard Hebard Architects, Inc. 2,400.00 Hunzikers, Inc. 9,479.94 Landscapes Unlimited, Inc. 1,948.00 Edward J. White, Inc. 2,493.00 TOTAL SECDA TIF GENERAL ACCOUNT $ 41,204.00 Abstract & Title Corporation $ 50.00 Judith Eaines & Agnes Exodus 6,677.14 Ddichiana Sewer & Plunbing 35.00 St. Joseph County Auditor 1.00 St. Joseph County Recorder 7.00 St. Joseoh County Circuit Court 5,311.50 St. Jos h County Treasurer 322.86 TUM STMEBAKER BOND $ 12,404.50 $ 60,357.20 -2- South Bend edevelopnent Cammission Regular Mee ing - January 10, 1992 3. j OF CA (font . ) Upon a motion made by Mr. Piasecki, seconded by Ms. 1hxbleston and unanimously carried, the Conrmssion formally approved the claims submitted January 8, 1992. Ms. Auburn declared a conflict of interest and did not vote. M 5. w There w6re no cmuuani.cations . There was no old business. Mrs. Ko ata asked permission to add item 6.g. to the agenda. There was no objection and the ita,,i was added. a. Ms. Auburn thanked Mr. Combs for his sevtm years of service on the Commission in im effort to improve the quality of life for the citizens of South Bend. She not that the Commission requires considerable time and effort from its med)ers. Ms. Auburn read Resolution No. 1033 into the record. RESOLUTION NO. 1033 A REc OLUTION OF THE CITY OF SOUTH BEND RID PMENT MO MSSION COMvEMING SAMY COMBS FOR MERITORIOUS SERVICE TO THE SOUTH BEND REDEVELOPY= COMMISSION SEAS, many people express concern Lt urban problems and their impact L the ccnTwnity; and SEAS, some people demonstrate their :ern by personal involvement in the wig 'MERE WERE NO C 43NICATIONS THERE WAS NO OLD BUSINESS South Bend 4edevelopTent Ccannission Regular Mee ing - January 10, 1992 6. NEW BUSUESS (Copt-) a. contLinuea... of seeking solutions; and a very few people are both willing and able to bring a degree of dedication and leadership that culminates in real, measurable progress enriching the life of the community; unity; and Sandy Combs has shown such p by honorably serving as a ner on the South Bend went Camtission since 1985; and during the tenure of his service the quality of life of the residents of South Bend has improved as a result of the contributions of his time, knowledge, good judgement and steadfast efforts. NOW, THEREFORE, BE IT RESOLVED, that the South Bend Redevelopment Commission herEhy commends Sandy Combs for meritorious service and expresses its gratitude for a job well done. Ad ted at a Regular Meeting of the South Benc.Redevelcgnent Cannission, held on January 10, 1992 at the Office of the Ccrmission, 1200 County -City Building, 227 West Jefferson Boulevard, South Bend, Mr. Combs expressed his appreciation for the resolution. He looks back on his experience with the Commission as a blessing to be able to serve with such a prestigious group. He expressed his appreciation to former City Council marker Eugenia Braboy for her confidence in securing his appointment. He wished the Crnmission continued success and con tulated Ms. Huddleston on her Ms. Auburn presented Mr. Combs with a cM, of Resolution No. 1033 suitable for f ran Lincr. -4- South Bend edevelognent Ccannission Regular Mee ing - January 10, 1992 6. NEW BUSUM (Copt . ) a. cone inueu.. . a Upon a motion by Mr. Donoho, seconded by COMMISSION APPROVED RESOLUTION Mr. Piasecki and unanimously carried, the NO. 1033 MAYEMING SANDY COMBS Cm-mission approved Resolution No. 1033 FOR MERI'IbRIOUS SERVICE TO THE carrPxx1ing Sandy Combs for meritorious SOUTH BEND REDEVELOPY= senrice to the South Bend Redeveloptent COMMISSION Mr. Fonash gave the staff report on the project. The petitioner manufactures refrigerated storage and display cases and coolers. They are expanding their South fiend operations and propose to pur e and install the following new manifacturing equilanent: one Pedrazzoli Tube Bender, two Pedrazzoli Dies, one Turret Press, and one Con -Tec Foarhincr Fixture. The expansion and additional equipment will create thirty (30) new pennanent full-tine jobs representing an annual pa ll of $700,000 and will maintain semmty (70) existing permanent full -time j with an annual payroll of $1, 00,000. The total estimated cost of the equipment is $150,000. The property is properly zoned for the p ed use. The property is not loaited in an area presently designated as Tax Abatement Impact Area but is in a Tax Incremental Financing Allocation The project qualifies for 5 years of rscnal property tax abatement under the ordinance. Without abatement, the tax�s on the new equipment are estimated to $13,829. With abatement, the taxes are estimated to be $2,891 over the five years of the abatement. Therefore, the cost of the abatement is approximately $10,938. -5- South Bend edevelopment Commission Regular Meeting - January 10, 1992 6. NEW BUSZESS (Cont.) b. continued... C. Mr. Fonash noted that Bangor Refrigeration asked for and received 10 years of real property abatement earlier this fall for the building addition where this equipment will be located. Mr. Voss of Bangor Refrigeration exp ained that Bangor is coming up with new, specially -made products. They anticipate increased sales due to these new product lines. Mr. Doncho asked if Bangor has been able to crease employment based on the real prqDerty abatement granted previously. Mr. Voss responded that this new equipment is tied to that expansion and the new jobs have not been realized yet. The thirty jobs referenced in this app ication are the same 30 jobs ref renced in the real property abatement Upai a motion by Mr. Piasecki, seconded by 14s. Huddleston and unanimously carried, the Commission approved Resolution No. 1034 approving an application for personal property tax dediction for property located at 3620 W. McGill Street in the Airport Economic Dem�lcpment Area. (Bangor Refrigeration Co . ) Ms. Manier explained that last spring the Ccmnission approved a Rental Rehab Loan for the Historic Dunbar Corner Project. That was part of the financing used for the project. A circumstance arose in the pri:rate financing that necessitated restructuring one of the private loans. Sou Bend Heritage is now contributing a $150,000 loan to the project. That loan is the subject of this Consent. The C ssion's loan was conditioned on the M CO�MSSION APPROVED RESOLUTION NO. 1034 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3620 W. KDGILL IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Regular Mie elopa1t Commission - January 10, 1992 6. NEW BUSINESS (Cont-) M e. ssion's approval of any other financing. ' The South Bend Heritage loan will take fifth priority and be subordinate to the Rental Rehab loan. This Consent allows South Bend Heritage to structure the financing on the pro ect . Upon a motion by Mr. Donoho, seconded by W&JISSION APPROVED THE CONSENT Mr. Piasecki and unanimously carried, the TO SUBORDINMTE NOTE AND YDRIGAGE Commission approved. the Consent to FOR THE HISTORIC DUNBAR CORNER Subordinate Note and Mortgage for the PROJECT Historic Dunbar Corner Project. Mrs Kolata explained that the City Engineering Department has perfon:ned senrices for us, inspecting our projects in the South Bend Central Develont Arai in 1991. They have itemized their time spent, by position, and billed us for $10,252.73. This is an eligible exp�nse from the TIF Fund. Engineering has paid those costs and this is a re' ement fran the TIF Fund to the Cit 's General Fund. Upo i a motion by Mr. Piasecki, seconded by Mr. Doncho and unanimously carried, the Commission approved Resolution No. 103 authorizing the reimbursement to the Cit. of South Bend for expenditures made wi the South Bend Central Development -7- COMV1ISSION APPROVED RESOLUTION NO. 1035 AUTHORIZING THE REIMBURSEMENT` TO THE CITY OF SOUTH BEND FOR EXPENDI'TURE'S MADE WITHIlV THE SOUTH BEND CENTRAL DEVELOP1 W AREA South Bend Redevelogrent Cmraission Regular Meeting - January 10, 1992 6. NEW BUS S (Cant.) e. conT nuea... Mrs Kolata noted that we have been in discussions with the owners of the p rty at 765 S. Lafayette, which is the 4.9 acre site that includes the Avanti building. The six owners of that p rty have made an offer concerning their willingness to sell the building upon certain conditions. The conditions are 1) a purchase price of $240,000; 2) of iliat $240,000 $45,000 will be put into an escrow account for a period of two y fran the date of closing, to be usel by the Crnmission to pay for costs of lean -up of any environmental con tion which may exist on the p rty; 3) any unused portion of the escrow fund will be released to the sellers at the end of the two year per od; 4) if the envi.rorm -ental clean-up cos --s exceed the escrowed amount, the Cit will pay the overage; 5) the Cannission will pay outstanding property tax�s for 190 payable 191 and 191 payable 192 611 the C mission will pay for the cos of a title insurance policy; and, 7) eas is will be kept in place. Mrs Kolata noted that the title insn-ance policy is a cost we would usually pay. The property taxes on the property will be approximately $1,351 if we lose in early February. The staff recamiends accepting the off r. The resolution states that we havB received the offer, that the offer is onsistent with Fair Market Value as established by our appraisers, and au orizes the sending of a purchase off Br and beginning of condemnation p eedings if closing does not take pla e within 60 days. Mrs on 10, is are , Kolata noted that we expect to close :he property approximately February 1992. The Eminent Darin provision i fall -back provision for us. There a couple of items on the title policy ME South Bend Regular Me 6. NEW BU e. co f. a e1cpment CmuLLssion - January 10, 1992 (Cont.) that need to be released. They are well on their way to being satisfied. We rec that the Canni,ssion adopt the resolution conditioned on those two items be�bicr satisfied. upon a motion by Ms. Huddleston, seconded by mr. Piasecki and unanimously carried, the Carmission approved Resolution No. 1036 relating to acquisition of property within the Studebaker Corridor lopment Area by Eminent Dwain, corx1itional on clearing exceptions 9 & 10 on the preliminary title policy. Mrs Kolata noted that we have received a cowiter offer of $5,000 for parcel 4 -49 in the Studebaker Corridor, 1112 S. Franklin, fran Mr. and Mrs. Bilinski. The staff recamunds accepting the offer. Upon a motion by Mr. Doncho, seconded by Mr. Piasecki and unanimously carried, the Ccmnission accepted the counter offer of $5,000 for parcel 4 -49 in the Studebaker Corridor Development Area. Mrs Kolata explained that the legal description for the property we conveyed for the construction of the LTV building was in error. Vacated Washington Street was paid for, but was not in the legal des ription. This Corrective Deed cortects that error. PAM CaAMISSION ACCE= THE COUNTER • E■ OF ••0 FOR •• -•ICI FRANKLIN) IN THE STTJDEBAKER CORRIDOR DEVELOP= AREA (1112 S. a motion by Ms. Huddleston, seconded COMMISSION AUTHORIZED EXECUTION by Mr. Doncho and unanimously carried, OF CORRECTIVE DEED FOR PROPERTY the Ca mission authorized execution of IN THE SOUTH BEND CENTRAL the Corrective Deed related to property DEVELOP[= AREA in the South Bend Central Development -9- South Bend RE Regular Mee i 7. PROCP2E'S Mrs. Kola opened r LE S. Michig Fields ac downt 8. NEXT The n Commiss'c 24, 199 9. A-DJOUPIZIE There b before motion Huddles meeting ciq4 Paula N elcgnent Cmraission - January 10, 1992 reported that 'IC:BY Yogurt has to Dainty Maid Bake Shop at 225 They sell yogurt and Mrs. es. We wish them well in the Regular Meeting of the Redevelopment n is scheduled for Friday, January at 10:00 a.m. no further business to come Camiission, Mr. Piasecki made a the meeting be adjourned. M. seconded the motion and the adjourned at 10:43 a.m. Auburn, President -10- My "a R NEXT COMUSSION YEEIrrIlVG ill • -iii Ann E. Kolata, Director