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Home My WebLink AboutRM 05-01-92May 1, 1992 10:00 A.M. Presiding O 1 Members Members Legal C Redevel Bureau News Me Others: Ms. Aub continu 2. APPROVA 3. SOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULED REGULAR MEETING ficer: Ms. Paula N. Auburn President 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Present: Ms. Paula N. Auburn, President Mr. Roman J. Piasecki, Vice President Mr. Michael Donoho, Secretary Ms. Charlotte Huddleston Absent: Mr. Philip J. Faccenda, Assistant Secretary >unsel: Ms. Jenny Pitts Manier >pment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Mr. K. C. Pocius, Economic Dev. Specialist Mr. Thomas Eddington, Economic Dev. Specialist Ms. Jane McGinnity, Intern >f Housing Staff: Mr. Ted Leverman, Assistant Director lia: Mr. Don Porter, South Bend Tribune Mr. Thom Howell, U -93 Mr. Carter Wolf, Center City Associates Mr. Mark Krcmaric, Barnes & Thornburg irn announced that the Executive Session held prior to the meeting would be :d following adjournment of the Regular Meeting. Upon a motion made by Mr. Piasecki, seconded by Ms. Huddleston and unanimously carried, the minutes of the Regular Meeting of Friday, April 10, 1992, were approved. South B nd Tribune Tri -County News Equipme3lt Services St. Joseph Title Corp. -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, APRIL 10, 1992 $ 44.62 29.00 37.12 150.00 South Bend edevelopment Commission Rescheduled Regular Meeting - May 1, 1992 3. APPROV OF CLAIMS (Cont.) continued... United arcel Service 19.25 East Ra a Printing 21.90 Office Enteriors 2,648.30 South B nd Drafting 25.00 Taxpayers Research Association 19.95 St. Jos ph County Recorder 27.75 Petty C5Lsh Grzeskowiak & Portage Manor 22.09 Photogr phy Plus 234.00 Enviroc rp Services 1,200.00 Ann Kol to 10.65 TOTAL 1 $ 4,489.63 Northern Indiana Public Service Co. $ 83.71 Peirce & Associates 240.00 Tri -County News 116.27 James R Freeman 21,250.00 James R Freeman & Hallmark Real Estate 22,500.00 St. Jos ph County Treasurer 282.82 Stephan'e Grzeskowiak & Portage Manor 430.10 Stephan'e Grzeskowiak 550.00 Stephan'e Grzeskowiak & Carlyle Health Care 3,221.30 Stephan'e Grzeskowiak & Edward L. Heyde, M.D. 58.30 Stephan'e Grzeskowiak & Health Care Prescriptions 8.10 Stephan'e Grzeskowiak & Osco Drugs #445 14.20 Bernard Thomas 6,810.00 Indiana Michigan Power Company 26.66 McClosk y & Associates 2,500.00 Jerome Michaels 2,500.00 St. Joseph Title Corp. 75.00 Dept. of Code Enforcement 220.00 Petty Cash 5.00 Hoover Appraisal Service 150.00 Watterul Inc. 726.00 Bradber Brothers, Inc. 2,700.00 TOTAL $64,467.46 Lawson- pisher Associates $ 550.99 TOTAL $ 550.99 GRAND T TAL $71,466.09 -2- South Bend edevelopment Commission Rescheduled Regular Meeting - May 1, 1992 3. 4 5. (Cont.) Upon a otion made by Ms. Huddleston, seconde by Mr. Piasecki and unanimously carried the Commission formally approved the claims �ubmitted May 1, 1992. There wire no communications. -M Mrs. Kolata noted that this Lease is for both retail spaces in the St. Joseph/ Wayie parking garage. Catering by Billie has been in retail space number one for a year and a half and would like to expand intD space number two. They will be usi g the additional space primarily for sea ing. We are pleased that their bus'ness is doing well and that they need to xoand. Thig Lease supersedes the existing lea e. The term of the lease is from May 1, L992 to October 31, 1995. Rent will sta t at $1,043 per month for six months, inc easing each year. The total rent for the term of the Lease is $63,849. The con itions of the Lease are basically the sam as the previous Lease. We will make six parking spaces available to them in the garage, up from the three spaces we pre iously allowed them. We have agreed to remove a 16 foot con rete block wall dividing area one fran area two and finish the floor where the wall was. The cost estimate for that is 2,000. Ms al wi Manier noted that the Commission must consent to an Assignment of Lease 1st Source Bank concerning Billie's pment in the building. -3- COMMISSION FORMALLY APPROVED CLAIMS SUBMITTED MAY 1, 1992 THERE WERE NO COMMUNICATIONS South Bendtedevelopment Commission RescheduledlRegular Meeting - May 1, 1992 5. OLD BUSINESS (Cont.) 6. a. continued... 22 Upon a motion by Ms. Huddleston, seconded by Mr. Donoho and unanimously carried, the Commission approved the Commercial Lea a with Catering by Billie for retail spa es numbered one and two in the St. Jos ph /Wayne parking garage and consented to he Assognment of Lease with 1st Sou ce Bank. . (Palais Royale) Mrs. Kolata asked that the following items be entered into the record: 1) a copy of the Lease; and 2) the affidavits froin the South Bend Tribune and the Tri County News indicating that the notice was published in both newspapers on pril 17, 1992, and setting the public hea ing for 10:00 a.m. May 1, 1992. Ms. Auburn asked if there was any obj ction to these documents being ent red into the public record. There was no objection and the documents were so Bntered. Mrs. Kolata noted that the purpose of the pub is hearing is to consider the Lease to De entered into by the Commission and the Authority concerning the bond issue whi h will be used to acquire the Palais Royale building. The Common Council must alsD take action on this lease, after whi h the State Board of Tax Commissioners must act on the Lease. Res lution No. 1053 authorizes the Co fission to seek these actions. The Lease states that the Commission int nds to pay rent to the Authority at a ratB not to exceed $220,000 per year in semi- annual installments beginning when -4- COMMISSION APPROVED THE COMMERCIAL LEASE WITH CATERING BY BILLIE FOR RETAIL SPACES NUMBERED ONE AND TWO IN THE ST. JOSEPH /WAYNE PARKING GARAGE AND CONSENTED TO THE ASSIGNMENT OF LEASE WITH 1ST SOURCE BANK South Bend edevelopment Commission Rescheduled Regular Meeting - May 1, 1992 6. (Cont.) a. conkinued... the project is completed, or January 28, 1993, whichever is later. The term will not exceed 13 years, and can be prepaid. We Bxpect that the maximum $220,000 per year lease payments is high and will be red ced when the bonds are actually Sol . But we are asking approval of the Lea a in substantially this form. Ms. Auburn opened the public hearing. The a were no comments from the public Mr. Donoho asked how we could set an amount for the bond without knowing if the owners of the Palais Royale would accept our offer and how the Commission can enter into a lease for property nei her party owns. Mrs. Kolata responded that we have been negotiating witi the owners of the Palais and are sur the amount of the bond will cover its purchase. As to ownership, our offer is contingent upon the sale of the bonds. When we come to agreement on this offer or a counter offer for the property, the deed will be put into escrow until we have bond proceeds with whi h to purchase it. Mrs the bui: Mr. comf re sx lea: con: payr sufi payr payr fre( Kolata noted that we hope to sell bonds in early July and close on the .ding by the end of July. Piasecki asked where the money will : from to pay the bond. Mrs. Kolata )onded that currently the City has a oe for the ballroom space. We :idered using the same City funds for lent of the bond. However, there is `icient tax increment to make the tents and we are planning to make the tents with tax increment. That would up the City funds for other uses. -5- PUBLIC HEARING ON PROPOSED LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE SOUTH BEND REDEVELOPMENT AUTHORITY RELATED TO CERTAIN LAND AND PUBLIC IMPROVEMENTS IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (PALAIS ROYALE) South Bend redevelopment Commission RescheduledlRegular Meeting - May 1, 1992 6 rl (Cont.) rev C. Ms.lAuburn closed the public hearing. . (Palais Royale) Upon a motion by Mr. Piasecki, seconded by Ms. Huddleston and unanimously carried, the Commission approved Resolution No. 1053 authorizing the execution of a Lease for certain land and pub is improvements on behalf of the City of outh Bend and regarding other related mat ers. Mrs Kolata asked to enter into the record the following items: 1) affidavits from the South Bend Tribune and the Tri County News stating that the notice of public hearing was published in the South Bend Tribune and Tri - County News on April 17, 1992; and 2) a Certificate from the Auditor's office stating that there was no remonstrance filed regarding this refinancing. Ms. Auburn asked if there was any obj ction to entering these items into the record. There was no objection and the items were so entered. Mrs Kolata explained that Resolution No. 1054 authorizes the Commission to issue bonds in an amount not to exceed $6,!;00,000 in order to refinance the outstanding 1985, 1986 and 1988 TIF rev nue bonds. We may not refinance all COMMISSION APPROVED RESOLUTION NO. 1053 AUTHORIZING THE EXECUTION OF A LEASE FOR CERTAIN LAND AND PUBLIC IMPROVEMENTS ON BEHALF OF THE CITY OF SOUTH BEND AND REGARDING OTHER RELATED MATTERS South Bend edevelopment Commission Rescheduled Regular Meeting - May 1, 1992 6 (Cont.) C. continued... of he bonds. It may not be to your financial advantage to do that. All of the analysis related to that is not com lete. We will have to escrow some of the money because not all of the bonds are callable yet The resolution establishes Banc One of ndianapolis as the Escrow Agent. Banc One has been the Registrar and Pay'ng Agent on all three of the bonds and we intend to retain them in those fun tions. Mrs Kolata noted that the resolution set3 the form of bonds, establishes the different accounts which will be set up for the new bonds, and establishes that the interest rate of the bonds cannot exc ed 10% and the discount to the suc essful bidder cannot exceed 12s. Mr. Krcmaric noted that approval of the resolution allows us to go forward and work on this project. Evensen Dodge, the financial advisor for this bond issue, will be providing the final numbers on whi h we can base our decision on which bonds to refinance. Ms. Auburn opened the public hearing for anyoLne who wished to speak. Mr. res ins rat issi lets not Piasecki asked what rating we have i getting on our bonds. Mrs. Kolata )onded that these bonds have bond trance, the equivalent of a AAA .ng. The ones that have not had bond trance have had an A rating from iy's. We are looking at having this ie qualify for bond insurance and :ing the purchaser decide whether or to buy insurance. -7- PUBLIC HEARING ON ADDITIONAL APPROPRIATION OF FUNDS RELATED TO THE REFINANCING OF CERTAIN OUTSTANDING TAX INCREMENT FINANCING BONDS IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend edevelopment Commission Rescheduled Regular Meeting - May 1, 1992 6. NEW BUSINESS (Cont.) C. continued... e. Mr. Krcmaric noted that final numbers wil be included in the resolution on May 22, as will the decision on bond ins rance. Ms.lAuburn closed the public hearing. Upon a motion by Ms. Huddleston, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1054 authorizing the issuance of tax increment refinancing bonds in the South Beno Central Development Area to refund out tanding bonds. COMMISSION APPROVED RESOLUTION NO. 1054 AUTHORIZING THE ISSUANCE OF TAX INCREMENT REFINANCING BONDS IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA TO REFUND OUTSTANDING BONDS Ge rge G. Athens George Athens $21,350.00* $ 9,900.00 (Public) 31 E. Ewing $11,450.00 (Private) *iOcludes $1,190 contingency and fees Mrs Kolata noted that the property at 313 E. Ewing has three one - bedroom units. Under the Rental Rehab Program the loan would be repaid over a period of 10 vears at 096 interest as long as the conditions of the loan are met. Mrs Kolata noted that according to the financial statement, the property does not earn sufficient income to meet expenses. Mr. Leverman explained that Mr. Athens borrowed against the property in South Bend redevelopment Commission RescheduledlRegular Meeting - May 1, 1992 6. (Cont.) e. continued... f. 9M for a business venture. He is making pa ents on that loan from business pro eeds and not through rental of the Upon a motion by Mr. Piasecki, seconded by Ids. Huddleston and unanimously carried, the Commission approved the Rental Rehab Loan in the amount of $9,900 for property located at 313 E. Ewing. COMMISSION APPROVED THE RENTAL REHAB LOAN IN THE AMOUNT OF $9,900 FOR PROPERTY LOCATED AT 313 E. EWING Upon a motion by Ms. Huddleston, seconded COMMISSION AWARDED THE CONTRACT by r. Donoho and unanimously carried, TO GEORGE ATHENS FOR WORK TO BE the Commission awarded the contract to DONE IN CONNECTION WITH THE Geo ge Athens for work to be done in RENTAL REHAB LOAN ON PROPERTY connection with the Rental Rehab Loan on LOCATED AT 313 E. EWING. pro erty located at 313 E. Ewing. Mrs Kolata explained that the South Bend Symphony wants to use the plaza for a catered brunch and recital they are conducting as a fund raising event. It meets all of our qualifications. They hav provided us with the indemnification we tequire. Upon a motion by Ms. Huddleston, seconded by Mr. Piasecki and unanimously carried, the Commission approved the use of the Morris Civic Plaza by the South Bend Symphony on May 10, 1992. Mrs Kolata explained that Center City Associates would like to use the plaza for their Annual Recognition Breakfast on June 17. They have provided the indemnification we require. COMMISSION APPROVED THE USE OF THE MORRIS CIVIC PLAZA BY THE SOUTH BEND SYMPHONY ON MAY 10, 1992 South Bend edevelopment Commission COMMISSION APPROVED THE USE OF Rescheduled Regular Meeting - May 1, 1992 THE MORRIS CIVIC PLAZA BY CENTER CITY ASSOCIATES ON JUNE 17, 1992 6. NEW BUS NESS (Cont.) g. conpinuea... h. i. Upon a motion by Ms. Huddleston, seconded by Mr. Piasecki and unanimously carried, the Commission approved the use of the Morris Civic Plaza by Center City Ass ciates on June 17, 1992. (Colfax Bridge over' the East Race) Mrs. Kolata noted that the State of Indiana is going to replace the Colfax Bridge over the East Race in 1993. They are lining up the temporary easements they need. The easement terminates when the construction work is complete. They wil pay us $2,085 for this easement. There was a public hearing last fall over the design of the bridge. Ann Kolata, Tom Eddington, and representatives from Engineering and Cole Associates recently met with the Department of Transportation to liscuss design issues and concerns rai ed at that public hearing. The bri ge will be widened, as well as rep aced. We were concerned with aes hetics and access to businesses dur ng construction. We achieved some com romises on those issues. Upon a motion by Mr. Piasecki, seconded by Ids. Huddleston and unanimously carried, the Commission approved the temporary easement to the State of Indiana for construction of the Colfax Bri ge over the East Race in the South Ben Central Development Area. -10- COMMISSION APPROVED THE TEMPORARY EASEMENT TO THE STATE OF INDIANA FOR CONSTRUCTION OF THE COLFAX BRIDGE OVER THE EAST RACE IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend2edevelopment Commission Rescheduled Regular Meeting - May 1, 1992 6. NEW BUSXNESS (Cont.) i. continued... oil Mrs Kolata noted that the Commission sen purchase offers for two lots on West Jef erson Street near the site the Nor hern Indiana Historical Society is usi g for the museum. We have received the deeds through condemnation action and would like to transfer them to St. Joseph County which will transfer them to the Historical Society for use in their project. The resolution calls for pa ent of $6,500 for the two lots. That is he cost that we incurred to acquire the lots. Upon a motion by Ms. Huddleston, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1055 transferring real property in the Wes Washington- Chapin Development Area to he County of St. Joseph. Mrs Kolata noted this item is related to lani we are selling in the 1200 block of Wes Washington to the West Washington Hom s Partnership for construction of new hou ing. They thought the Commission needed to sign the petition to vacate an alley, but have learned that that dociunent does not require the Co ission's signature. However, they will be preparing documents for a replat of he area and that replat will need the Cc ission's signature. The replat has to a prepared by a registered surveyor and reviewed by the Plat Committee of the Are Plan Commission. Upon a motion by Ms. Huddleston, seconded by Mr. Piasecki and unanimously carried, the Commission authorized the staff to sigh the Replat in the West Washington-Chapin Development Area. -11- COMMISSION APPROVED RESOLUTION NO. 1055 TRANSFERRING REAL PROPERTY IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA TO THE COUNTY OF ST. JOSEPH COMMISSION AUTHORIZED THE STAFF TO SIGN THE REPLAT IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA South Bend edevelopment Commission Rescheduled Regular Meeting - May 1, 1992 6. k. 1. M. (Cont.) Mr. Pocius noted that we wish to acquire four parcels making up two distinct pieces of property in the 1100 block of S. Michigan: Baird Motor Sales and a sma 1 vacant lot. The resolution aut orizes the staff to send purchase off rs for the property and, if no agr ement is reached within 30 days, to pro eed with condemnation through Eminent Dom in. Upon a motion by Mr. Donoho, seconded by COMMISSION APPROVED RESOLUTION Mr. Piasecki and unanimously carried, the NO. 1056 RELATING TO ACQUISITION Comnission approved Resolution No. 1056 OF PROPERTY WITHIN THE STUDEBAKER relating to acquisition of property CORRIDOR DEVELOPMENT AREA BY within the Studebaker Corridor EMINENT DOMAIN Dev lopment Area by Eminent Domain. Mrs. Kolata asked to table item 6.1 until the next meeting. ion No. 1058 for 10: Mrs. Kolata noted that the resolution is not ready for filing because the legal des ription is not final. We would like to able the filing of Resolution No. 1058 until the next meeting, but pro eed to set a public hearing for 10:00 a.m. on Friday, May 22, 1992 and authorize publication of Notice of Public Hearing. -12- ITEM 6.L WAS TABLED UNTIL THE NEXT MEETING South Bend redevelopment Commission RescheduledlRegular Meeting - May 1, 1992 6. 7. 8 (Cont.) M. continued... Upon a motion by Mr. Piasecki, seconded by ids. Huddleston and unanimously carried, the Commission set the public hearing for 10:00 a.m. Friday, May 22, 1992, and authorized publication of the Not ce of Public Hearing to be held on Res lution No. 1058 at 10:00 a.m., May 22, 1992. Mr. Don ho asked about the progress on the multi-family housing project in Monroe Park. Mrs. Ko ata responded that the developer received the state tax credits he needed to do the project and it is moving along. The project is close to being on schedule. Mr. Wolf expressed concern that the Colfax Bridge work over the East Race and widening of the street will cause hardship for the businesses near there. He would like us to be sure the state makes every effort to keep access open to the businesses. Mrs. Kolata noted that we are participating in the discussions with the Department of Transportation, along with Engineering, and have reached some compromise. We will continu to work with them to keep access open. Mr. Wolf noted that the Sunburst race on June 6 will have two new features this year: a public party for families in Howard Park in the afternoon and an adult party on the East Race that evening. The nex Commis s 8, 1992 Regular Meeting of the Redevelopment on is scheduled for 10:00 a.m., May -13- COMMISSION SET THE PUBLIC HEARING FOR 10:00 A.M. ON FRIDAY, MAY 22, 1992, AND AUTHORIZED PUBLICATION OF THE NOTICE OF PUBLIC HEARING TO BE HELD ON RESOLUTION NO. 1058 AT 10:00 A.M., MAY 22, 1992 PROGRESS REPORTS NEXT COMMISSION MEETING South Bend redevelopment Commission RescheduledlRegular Meeting - May 1, 1992 9. There b ing no further business to come before he Redevelopment Commission, Mr. PiaseckL made a motion that the meeting be adjourn d. Ms. Huddleston seconded the motion ind the meeting was adjourned at 11:15 a.m. Paula N� Auburn, President -14- ADJOURNMENT Anr"'E . Kolata, birector