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HomeMy WebLinkAboutRM 04-10-92SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING April 10, 19 2 10:00 A.M. Presiding Of icer: Ms. Paula N. Auburn President 1. ROLL CAL Members resent: 2. Members sent: Legal Co nsel: Redevelo ment Staff: News Others: a. .a: 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Ms. Paula N. Auburn, President Mr. Roman J. Piasecki, vice President Mr. Philip J. Faccenda, Assistant Secretary Ms. Charlotte Huddleston Mr. Michael Donoho, Secretary Ms. Jenny Pitts Manier Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Mr. John Fonash, Economic Dev. Specialist Mr. Don Porter, South Bend Tribune Mr. Thom Howell, U -93 Mr. Carter Wolf, Center City Associates Mr. H. J. Baird Mr. Ernest J. Szarwark, Barnes & Thornburg Mr. Bruce J. Squillante, Barnes & Thornburg Mr. David Ray, South Bend Tribune Mr. Roger Stouffer, Stouffer Graphics Mr. James Knepp, Attorney MWWU a► WJi X J_ lUMY r W4ic 1.11 G I, -/- Upon a motion made by Mr. Piasecki, seconded by Ms. Huddleston and unanimously carried, the minutes of the Regular Meeting of Friday, March 27, 1992, were approved. -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, MARCH 27, 1992 South Bend R development Commission Regular Meet ng - April 10, 1992 3. APPROVAL OF CLAIMS South Be d Tribune Holladay Corporation TOTAL South Bend Tribune Tri -Coun y News Code Enforcement Lang Fee ey & Associates Peirce & Associates St. Jose h Title Corporation 0 011 01 0 GRAND TO(fAL Upon a Ibmitted tion made by Ms. Huddleston, secondeby Mr. Faccenda and unanimously carriedthe Commission formally approved the claims April 10, 1992. 4. COMMUNICALTIONS There were no Communications. 5. OLD BUST SS There wa3 no Old Business. 6. a. ion Mrs. Kolata asked that the following items be entered into the record: 1) an original of the Notice of Public Hearing on Anendment to the Studebaker Corridor Development Area; 2.) an Affidavit of Carol Smith, Classified Manager of the South Bend Tribune, that Notice of Public Hearing was published in that daily -2- $ 120.00 375.00 $ 495.00 $ 66.39 62.07 1,901.00 350.00 70.00 75.00 $ 2,524.46 $ 3,019.46 COMMISSION APPROVED CLAIMS SUBMITTED APRIL 10, 1992 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Regular Me 6. NEW BU elopment Commission - April 10, 1992 (Copt.) a. contlinued... newspaper on March 27, 1992. 3) an Affidavit of Lisa Andrysiak, classified manager of the Tri- County News, that Noti a of Public Hearing was published in that weekly newspaper on March 27, 1992. 4) property owners listed on Resolution No. 1044 were sent a copy of the Notice of Hearing on March 27, 1992. 5) a list of neighborhood associations who previously registered with the Redevelopment Commission concerning the Studebaker Corridor Development Area. These neighborhood associations were sent a copy of the Notice of Hearing on March 27, 1992. 6) a copy of Resolution No. 1044 which is the subject of the Public Hearing. 7) as of 10:00 a.m. on April 10, 1992, 0 written remo strances were received. Ms. uburn asked if there was any obje tion to these items being entered into the record. There was no objection and he items were so entered. Mrs. Kolata explained that Resolution No. 1044 amends the Studebaker Corridor Development Plan by adding four parcels to the acquisition list. The parcels are along South Michigan Street and total aper ximately 23,169 square feet. We inte d to purchase these properties and make them available for new development. The astimated cost of redevelopment is $45,300. Ms. �kuburn opened the Public Hearing. MR. PAIRD: Did you mention the price that the DDraiser set? MRS. KOLATA: No. The appraisals are not completed. At this point that is our estimate of what the cost would be of redeveloping it. It is a staff estimate, not Pased on the appraisal, which will Arob blv not be done until next week. If -3- PUBLIC HEARING ON RESOLUTION NO. 1044 South Bend R development Commission Regular Meeting - April 10, 1992 6. (Cont.) a. continued... iISM C. this resolution is approved, the Commission would adopt a resolution setting the offering price, once the appr isals have been set. MR. AIRD: It is a used car lot. I've had 't for 34 years. It's income prod sing. MRS. KOLATA: The appraisers are in the proc ss of looking at that. I talked to one 3f the appraisers yesterday and he told me his report would probably be in next week. MR. AIRD: Like I say here, taking my gas mart now and I want it noted I won't have any income if you take the used car lot. So, we have to use the income approach on the gas mart. No appraiser has ever come up with that -- just for raw land. I've got a big business doing a million dollars worth of business and the corp ration pays Homer and Delores Baird a lease of $2,850 a month. I just want that in the record. MS. �UBURN: Is there anyone else who want to address the resolution? Ther was no one else who wished to spea Ms. Auburn closed the public hear'nq on Resolution No. 1044. Upon a motion by Mr. Piasecki, seconded by MB. Huddleston and unanimously carried, the Commission approved Resolution No. 1044 amending the Stud baker Corridor Development Plan. -4- COMMISSION APPROVED RESOLUTION NO. 1044 AMENDING THE STUDEBAKER CORRIDOR DEVELOPMENT PLAN South Bend R Regular Meet 6. NEW BUSI c. cont elopment Commission - April 10, 1992 (Cont. ) . (Stouffer Industries) Mrs.lKolata asked that this item be continued. ted . (Stouffer Industries) Mrs. Kolata noted that Stouffer Indu tries will be moving from their pres nt location on Niles Avenue to the Airp rt Economic Development Area. Mr. Ponash gave the staff report on the tax ibatement application. The peti ioner proposes to purchase and inst ll new manufacturing equipment for use 'n the manufacture of specialized prod acts and equipment used within the phot graphic and graphic arts Indu tries. The petitioner states that the aew equipment is necessary to.remain comp titive, increase business, and main ain its position as world leader in cert in segments of the photographic and grap is arts industries. The total est' ated cost of the new manufacturing equi ment is $350,000. The project will create one (1) new permanent full -time job representing an annual payroll of $20,000 and will maintain eleven (11) existing permanent full-time jobs and two (2) existing part time jobs with an annual payroll of $410,000. The as a Sout property is properly zoned for the used use. The property is not ted in an area presently designated Tax Abatement Impact Area by the h Bend Common Council. It is -5- ITEM 6.C. WAS CONTINUED South Bend Regular Me 6. NEW BU d. co elopment Commission - April 10, 1992 ,(Cont.) howe er, located in a Tax Incremental Fina cing Allocation Area. The peti Toner qualifies for 5 years of pers nal property tax deduction under the Tax Abatement Ordinance. Mr. onash noted that without abatement the stimated taxes on this personal prop rty would be $31,931. The abated taxe will be approximately $5,662 over the ive year period. Therefore, the am t to be abated will be approximately $26, 69. Mr. all The by the No. per pro in (St touffer, owner of Stouffer tries, explained that Stouffer tries is the world's primary ier of sensitivity guides for the graphic industry. They make the under their own trade name and for ajor photographic manufacturers. quipment is highly specialized and expensive. a motion by Mr. Faccenda, seconded . Piasecki and unanimously carried, ommission approved Resolution 047 approving an application for nal property tax deduction for rty located at 1801 Commerce Drive e Airport Economic Development Area. ffer Industries) e. comet ssion Reso ution a 1-cation dedu tion f Norti Found Econ mic De Indu tries) f. ive in the Air t Area. (Nimet Mrs.�Rolata asked that this item be cont'nued. ax -6- COMMISSION APPROVED RESOLUTION NO. 1047 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1801 COMMERCE DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (STOUFFER INDUSTRIES) ITEM 6.E. WAS CONTINUED South Bend R Regular Meet elopment Commission - April 10, 1992 6. NEW BUSINESS (Cont.) f. continued... . ( Nimet ies) Mr. onash noted that Nimet Industries is in t e Industrial Coatings Industry serv'cing high -end users of industrially coated products. They propose to purc ase and install new nickel plating and efrigeration equipment to allow them to a pand to meet the needs of their Gust mers, to attract new business, to cont'nue to improve the quality of its prod ct, and to prepare for a switch from ozon depleting freon (and fluorocarbon prod cts) to ammonia based cooling subs ances. The total estimated cost of the ew equipment is $300,000. The Droject will create two (2) new perm nent full -time jobs representing an annu 1 payroll of $36,000 and will main ain fifty -four (54) existing perm vent full -time jobs and five (5) exis ing part -time jobs with an annual payr 11 of $1,147,000. The oroperty is properly zoned for the prop sed use. The property is not located in an area presently designated as a Tax Abatement Impact Area, but is loca ed in a Tax Incremental Financing Allo ation Area. The petitioner qual'fies for 5 years of personal property tax abatement under the Tax Abatement Ordinance. Without abatement, the taxes on the project will be approximately $27,368. With abatement, the taxes on the project will be approximately $4,853. Therefore, the cost of the abatement is estimated to be $ 2,515. Mr. explained that Nimet solves some fzarwark common, but important, problems for -7- South Bend Redevelopment Commission Regular Meeting - April 10, 1992 6. NEW BUSINESS (Cont.) f. continued... ze tech ologically sophisticated companies worldwide. This kind of work requires freqient upgrading of equipment to stay abre st of changing technologies. Some of tie equipment they are purchasing is for this reason. The ther equipment being purchased is ammo is based refrigeration equipment. Freoi has been charged with a number of envi onmental problems and there is equi ment available now that will allow Nime to be more environmentally resn nsible. Ms. iuddleston asked if ammonia has any prop rties that could be dangerous to the comet nity. Mr. Szarwark- responded that the 3YBtem is a closed container system so t at no ammonia will escape. Upon a motion by Mr. Piasecki, seconded by Ms. Huddleston and unanimously carried, the Commission approved Resolution No. 1049 approving an application for personal property tax dedu tion for property located at 2424 Nort Foundation Drive in the Airport Econ mic Development Area. (Nimet Indu tries) Mr. Faccenda abstained. Fl (South Bend Trib ne). Mrs. Kolata noted that items 6.g. and 6.h. both concern the South Bend Tribune expa Sion. One is for real property tax abat ment and the other for personal nron rtv tax abatement. Mr. nash read the staff report on this tax atement. The Tribune proposes a -8- COMMISSION APPROVED RESOLUTION NO. 1049 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2424 NORTH FOUNDATION DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (NIMET INDUSTRIES) South Bend R development Commission Regular Meet'ng - April 10, 1992 6. NEW BUSINESS (Cont.) g. continued... total of 68,676 square feet of new construction to accommodate the acquisition of new equipment. A 25,000 square foot building will be constructed at the site of the old Colfax Theater for the operation of new newspaper inserting, packaging, and sorting machines. A 33,359 square foot Press Building will be constructed in which to operate a new, state-of-the-art press. Also, an 8,141 square foot Newsprint Warehouse and a 2,176 square foot footbridge to connect the second floor of the new Press Building to the existing structure will be constructed. The total construction cost is estimated to be $11,500,000. The project will create no new permanent full-time jobs but will maintain two hundred sixty -eight (268) existing permanent full- time.and two hundred fifty-five (255) existing part -time jobs with an annual payroll of $11 million. The Droperty is properly zoned for the prop sed use. The property is located in a Tac Abatement Impact Area and also in a Rede elopment Blighted Area. The prop rty is also located in a Tax Incr mental Financing Allocation Area. The roject qualifies for 10 years of real property tax abatement under the Tax Abat ment Ordinance. With ut abatement the improvements would gene ate approximately $5,421,905 in taxe3 over the ten year period. With abat ment the project will generate appr ximately $2,738,062 in taxes. Ther fore, the amount of the abatement will be approximately $2,683,843. Mr. exci >zarwark noted that this is an :ing project for South Bend. The new s will use a different kind of ink to )ve the physical appearance of the The new inserting machinery will IM South Bend R Regular Meet 6. E elopment Commission - April 10, 1992 (Cont. ) also enable the Tribune to tailor the day's paper to certain constituencies. Advertisers are becoming more demanding in their requirements of quality and value. With this machinery in place, advertisers will only need to pay for reac ing the specific target(s) they wish to reach. This will enable the Tribune to be more competitive against other media and as a regional newspaper. Mr. avid Ray of the South Bend Tribune note that this is the first installation of t is type of printing technology in the �nited States. Mrs. Kolata noted that the printing press will be visible from the east side of the building through five story glass windows, lit at night. It will be very attractive. The Tribune has done a very nice job of putting an industrial buil ina into the downtown. Mr. Faccenda wanted to be sure the Comm'ssion went on record as thanking the Trib ne for staying downtown with this expa lion. It would have been much less cost y to them to build in an industrial Mr. accenda noted for the record that he is " f counsel" for Barnes & Thornburg. Barn as & Thornburg is representing the Trib ne in this tax abatement application. Mr. Faccenda does not prof't in their practice. Upon a motion by Mr. Faccenda, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1050 approving an application for real property tax deduction for property loca ed at 213 -225 West Colfax Avenue in the outh Bend Central Development Area. Ms. uburn abstained. -10- COMMISSION APPROVED RESOLUTION NO. 1050 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 213 -225 WEST COLFAX AVENUE IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (SOUTH BEND TRIBUNE) South Bend R development Commission Regular Meeting - April 10, 1992 6. NEW BUSINESS (Cont.) I111M Mr. Fonash read the staff report on this tax abatement application. The Tribune proposes to purchase and install new newspaper inserting, packaging, and sorting machines as well as a new, state of the art press. The inserting, packaging, and sorting machines are necessary to enable the petitioner to cost effectively offer precise distribution of advertising to its advertising customers who desire to reach specially designated portions of the newspaper's readers. These new machines will expand and update existing equipment. The new press will replace a press which is over 40 years old. It will allow the paper to remain competitive. The total estimated cost of the new manufacturing equipment is $23,700,000. This new equipment will not create any new permanent full -time jobs, but will help to maintain the same two hundred sixty-eight (268) full -time and two hundred fifty -five (255) part time jobs mentioned in item 6.g. The per Tax Wit wou of wit equ $38 $1,' ect qualifies for 5 years of property tax abatement under the ement Ordinance. out abatement, the new equipment d generate approximately $2,167,725 ew taxes over the five year period. abatement, the taxes on the new pment will be approximately ,380. Therefore, the cost of the ement will be approximately 83,345. -11- South Bend R development Commission Regular Meet'ng - April 10, 1992 6. NEW BUSINESS (Cont.) h. continued.. i. Upon a motion by Mr. Faccenda, seconded by Ms. Huddleston and unanimously carried the Commission approved Resolution No. 1051 approving an application for personal property tax deduction for prop rty located at 213 -225 West Colfax Aven a in the South Bend Central Deve ooment Area. Ms. Auburn abstained. . (National Composites) Mr. onash read the staff report on the tax batement application. National Comp sites is engaged in the manu acturing of a new, low pressure plas is molding compound. This project cons'sts of acquiring a new compounder whicn will enable the company to subs antially increase its output in orde to meet existing and anticipated need 3. The purpose of the project is to add new capacity; no existing equipment will be replaced. The compound which is prod iced can be molded at low pressure leve s into a wide variety of plastic prod cts. According to the company, this comp and has the potential to revo utionize the plastics industry due to i s versatility, long shelf life, and stre gth. The total estimated cost of the iew equipment is $1,250,000. The project will create eighteen (18) new perm nent full -time jobs representing an annu 1 payroll of $262,000 and will maintain eighteen (18) existing permanent full-time jobs with an annual payroll of $262 000. The Aba ,)roperty is properly zoned for the >sed use. The property is not :ed in an area designated as a Tax ament Impact Area, but is located in -12- COMMISSION APPROVED RESOLUTION NO. 1051 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 213 -225 WEST COLFAX IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend R Regular Meet 6. NEW BUSI i. cont elopment Commission - April 10, 1992 (Cont. ) a T Incremental Financing Allocation Area�ax The project qualifies for 5 years of p rsonal property tax abatement under the Abatement Ordinance. With ut abatement, the new equipment would generate approximately $114,037 in new taxes over the five year period. With abatement, the taxes will be appr ximately $20,221. Therefore, the cost of the abatement will be appr ximately $93,816. Ms. kuburn asked if National Composites is tie same company as Total Industries. Mr. 3zarwark responded that Jack Long, Geor a Wiegand and Ralph Hohl who are with Total Industries, together with Brian Jacobsen - Reighter and John Neate formed National Composites. Approximately a year ago they sold the majority of the stock in the company to Pittsburgh investors. Mr. Wiegand and Jack Long each own 5% of the stock, but have no decision - making power in National Composites. Mr. Neate and Mr. Jaco sen- Reighter still own 15% of the stock and are officers of the company. Mr. Szarwark noted that the potential of the company is outstanding. With current methods of molding plastics, they have to be molded shortly after being made. The plastic tends to stiffen and harden with time and the high - pressure molding shatters the plastic. The new compounding technology requires a lower pressure and allows the use of plastic that has been stored up to a year. Upon a motion by Mr. Piasecki, seconded by Ms. Huddleston and unanimously carr'ed, the Commission approved Resolution No. 1052 approving an appl' cation for personal property tax dedu tion for property located at 2629 Foun ation Drive. (National Composites) -13- COMMISSION APPROVED RESOLUTION NO. 1052 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2629 FOUNDATION DRIVE (NATIONAL COMPOSITES) South Bend R Regular Meet 6. NEW BUSI 7. j - k. elopment Commission - April 10, 1992 (Cont.) Item 6.j. was tabled until the next meet'nq. Ther was no report. 1. Commission approval L.11c 1. lAUCUQf =C VV111uV1 W=V= v &LL= , mica. Mrs. Kolata noted that we have a proposal from Cole Associates to write asbestos and environmental abatement specifications for the North American Sign building. The amount is $3,220. We would like to amend the contract that we already have with Cole Associates for writing specifications for approximately 40 buildings in the Studebaker Corridor to include this one additional building. Upon a motion by Mr. Faccenda, seconded by Mr. Piasecki and unanimously carried, the Oommission approved the proposal from Cole Associates for writing specifications for removal of environmental conditions in the Stud baker Corridor Development Area. Mrs. Kol to noted that Cleo Hickey is taking a five w in ek absence to go on an exchange trip to Chile with Rotary International. She will be back the office May 20. -14- ITEM 6.J. WAS TABLED THERE WAS NO REPORT COMMISSION APPROVED PROPOSAL FROM COLE ASSOCIATES FOR WRITING SPECIFICATIONS FOR REMOVAL OF ENVIRONMENTAL CONDITIONS IN THE STUDEBAKER CORRIDOR DEVELOPMENT AREA PROGRESS REPORTS South Bend R Regular Meet 8. AM elopment Commission - April 10, 1992 Due to a lack of quorum for the Regular NEXT COMMISSION MEETING Meeting scheduled for April 24, the next meeting of the Commission will be a Rescheduled Meeting to be held on May 1, 1992 at 10:00 a.m. There b before Piaseck adjourn and the L a Paula ng no further business to come e Redevelopment Commission, Mr. made a motion that the meeting be .. Mr. Faccenda seconded the motion Meeting was adjourned at 11:16 a.m. . Auburn, President -15- ADJOURNMENT Ann E. Kolata, Director