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HomeMy WebLinkAboutRM 06-26-92K SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING June 26, 1992 10:00 A.M. Presiding Officer: Ms. Paula N. Auburn President 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Redevelopment Staff: Bureau of Housing Staff: News Media: Others: 1308 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 Mr. Michael Donoho, Secretary Ms. Charlotte Huddleston Ms. Jenny Pitts Manier Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Mr. Jon R. Hunt, Executive Director Mr. Ted Leverman, Assistant Director Mr. Thom Howell, U -93 Mayor Joseph E. Kernan Mr. Carter Wolf, Center City Associates Mr. Randolph Rompola, Baker & Daniels Mr. Myron Frasier, H. J. Umbaugh & Assoc. Mr. Steve Luecke, South Bend Heritage Foundation Mr. Michael Rippey, North American Golf Corp. The meeting was moved to Room 1308 of the County -City Building and notice was posted of the change in location. Ms. Auburn announced that the Executive Session held prior to the meeting would be continued following adjournment of the Regular Meeting. 2. APPROVAL OF MINUTES Upon a motion made by Mr. Piasecki, seconded by Mr. Faccenda and unanimously carried, the minutes of the Special Meeting of Friday, June 19, 1992, were approved. 3. APPROVAL OF CLAIMS C, ADMIN 1992 Rosemarie Harris South Bend - Mishawaka Area Chamber of Commerce -1- COMMISSION APPROVED THE MINUTES OF THE SPECIAL MEETING OF JUNE 19, 1992 $ 35.00 25.00 ' J South Bend Redevelopment Commission Regular Meeting - June 26, 1992 3. APPROVAL OF CLAIMS (Cont.) ADMIN 1992 continued... Gene's Camera Store Indiana Area Development Council Cheryl Phipps Equipment Services Federal Express STUDEBAKER CORRIDOR BOND Peirce & Associates Indiana Michigan Power Company Clean Air Systems Thomas General Construction St. Joseph County Recorder Peirce & Associates TOTAL 81.62 150.00 98.96 35.24 15.50 $ 441.32 350.00 6.00 5,980.00 20.00 8.00 120.00 TOTAL $ 6,484.00 GRAND TOTAL $ 6,925.32 Upon a motion made by Mr. Piasecki, seconded by Mr. Faccenda and unanimously carried, the Commission formally approved the claims submitted June 19, 1992. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS Mrs. Kolata asked that item 6.e. be considered at the top of New Business. There was no objection and the agenda was so revised. e. Commission approval requested for Resolution No. 1070 approving a proposed Lease between the South Bend -2- COMMISSION FORMALLY APPROVED CLAIMS SUBMITTED JUNE 19, 1992 FOR PAYMENT THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - June 26, 1992 6. NEW BUSINESS (Cont.) e. continued... Redevelopment Authority and the South Bend Redevelopment Commission for certain land and public improvements, approving preliminary plans, specifications and cost estimates, setting a public hearing on the proposed Lease pursuant to I.C. 36 -7 -14 -25.2, and authorizing publication of notice of the public hearing. Mrs. Kolata explained that the Redevelopment Authority is selling a lease rental revenue bond to construct a golf course in the Airport 2010 project area. The course is to be named Blackthorn Golf Course. The bond is backed by the Commission's lease payments. The Redevelopment Commission expects to make the lease payments entirely from golf course revenues. In the event that revenues are not sufficient to make the payments, revenues generated by the lease of the office sites surrounding the golf course may be used, as well as increased tax increment from the area. The Commission's ability to levy taxes to guarantee payment helps make the bond more secure and ensures a lower interest rate but we intend to structure the bond so that the levy will not be needed. Mayor Kernan noted that this action is a significant step in the process of developing the Airport 2010 Project to create jobs and increase the tax base in South Bend. Blackthorn Golf Course and the office sites around it will be a relatively unique concept in office development. Other improvements in the area which add to the unique environment of the development are the airport, the toll road, the U.S. 31 by -pass, and the availability of Indiana Bell fiber - optics. -3- South Bend Redevelopment Commission Regular Meeting - June 26, 1992 6. NEW BUSINESS (Cont.) e. continued... Mayor Kernan noted that the City has made or will be making significant investment in public improvements in the area. Six and one half million dollars worth of TIF bonds were sold for land acquisition and public works activities and five and one half million dollars of state funds are being spent on the realignment of Nimtz Parkway, construction of the toll road access ramp, and moving of I & M power lines. This project has been described in Indianapolis as the prototype of what an economic development project should look like. Mr. Rippey, North American Golf, explained the significant features of the golf course. The golf course is the centerpiece of the Airport 2010 development project. It has been designed to take advantage of the attributes of the site. The 200 acre site allowed a lot of flexibility in designing the course, maximizing its office frontage and utilizing the natural attributes. Mr. Rippey noted that they have tried to develop a golf course that will become known as one of the best golf courses in the Midwest It is a flexible golf course, playable at several different lengths and levels of difficulty. It has 19 holes, but can be played as an 18 hole course. Mr. Rippey noted that the two primary support facilities to the golf course are a clubhouse and a maintenance center. The clubhouse is a fairly small, stylish building with a brick exterior. It has two levels, totalling 7800 square feet. The maintenance center will be built in the south central portion of the site. It will be screened from the golf course and the office sites by existing trees. -4- South Bend Redevelopment Commission Regular Meeting - June 26, 1992 6. NEW BUSINESS (Cont.) e. continued... Mrs. Kolata noted that we expect to begin construction of the golf course about October 1. Work would continue through 1993 and allow the grass to mature to mid 1994. We expect to have the course open for play in July 1994, with the first full season being 1995. The estimated cost of constructing and equipping the course is approximately $4.5 million. Mr. Rippey explained that the name Blackthorn Golf Course was taken from the Blackthorn tree, a type of Hawthorn tree that grows in Ireland. Therefore, it lends itself to an Irish theme. There are some Hawthorn trees on the site. Mr. Luecke asked who will manage the course. Mrs. Kolata responded that it will be privately managed, by a yet unknown firm. It will be a public course, open to the public, but privately managed. Mrs. Kolata noted that the size of the bond issue will be approximately $5.4 or $5.5 million. We need to capitalize interest through 1995 and the amount will depend on interest rates at the time the bond is sold. Mrs. Kolata noted that Resolution No. 1070 approves the concept of leasing the project from the Redevelopment Authority. It sets a maximum annual lease term of 20 years and a maximum lease payment of $895,000. We don't expect the lease payments to be that high, but once the maximum is set, the schedule can't include a payment that exceeds it without starting the whole process again. The actual lease payment amount will be amended after the sale to reflect actual interest costs. The resolution also sets July 10, 1992 for a public hearing on the lease and approves the plans, specifications and cost estimates for the project. -5- k�South Bend Redevelopment Commission Regular Meeting - June 26, 1992 6. NEW BUSINESS (Cont.) e. continued... Mr. Faccenda noted that the City is not funding this as a recreational facility, but as infrastructure for economic development. In conjunction with the other infrastructure amenities of the area, the golf course will make this a very attractive location for businesses and the City should be able to get a return on its money three or four times. Upon a motion by Mr. Piasecki, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1070 approving a proposed lease between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission for certain land and public improvements, approving preliminary plans, specifications and cost estimates, setting a public hearing on the proposed lease pursuant to I.C. 36 -7 -14 -25.2, and authorizing publication of the notice of public hearing. a. Commission approval requested for Certificate of Waiver for Kenneth H. and Janice R. Miller for property located at 717 N. Blaine. Mrs. Kolata noted that items 6.a., 6.b., and 6.c. are all Certificates of Waiver for loans made under the Rental Rehab Program. Under the Rental Rehab Program 10W of the loan is forgiven each year if the requirements of the program are met. The Certificate of Waiver for Kenneth and Janice Miller forgives $1600 as of May 1, 1992. Upon a motion by Mr. Faccenda, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Certificate of Waiver in the amount of $1600 as of May 1, 1992, for Kenneth H. and Janice R. Miller for property located at 717 N. Blaine. In COMMISSION APPROVED RESOLUTION NO. 1070 APPROVING A PROPOSED LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT AUTHORITY AND THE SOUTH BEND REDEVELOPMENT COMMISSION FOR CERTAIN LAND AND PUBLIC IMPROVEMENTS, APPROVING PRELIMINARY PLANS, SPECIFICATIONS AND COST ESTIMATES, SETTING A PUBLIC HEARING ON THE PROPOSED LEASE PURSUANT TO I.C. 36 -7 -14 -25.2, AND AUTHORIZING PUBLICATION OF THE NOTICE OF PUBLIC HEARING COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN THE AMOUNT OF $1600 AS OF MAY 1, 1992 FOR KENNETH H. AND JANICE R. MILLER FOR PROPERTY LOCATED AT 717 N. BLAINE South Bend Redevelopment Commission Regular Meeting - June 26, 1992 6. NEW BUSINESS (Cont.) b. Commission approval requested for Certificate of Waiver for Jolene K. Newton for property located at 915 W. LaSalle. Upon a motion by Mr. Piasecki, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Certificate of Waiver in the amount of $425 for each of five years as of October 16, 1987 through October 16, 1991, for Jolene K. Newton for property located at 915 W. LaSalle. c. Commission approval requested for Certificate of Waiver for Jolene K. Newton for property located at 91534 W. LaSalle. Upon a motion by Mr. Piasecki, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Certificate of Waiver in the amount of $352.95 for each of four years as of October 16, 1988 through October 16, 1991, for Jolene K. Newton for property located at 915% W. LaSalle. d. Staff report on acquisition of property in the Studebaker Corridor Development Area. COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN THE AMOUNT OF $425 FOR EACH OF FIVE YEARS AS OF OCTOBER 16, 1987 THROUGH OCTOBER 16, 1991 FOR JOLENE K. NEWTON FOR PROPERTY LOCATED AT 915 W. LASALLE COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN THE AMOUNT OF $352.95 FOR EACH OF FOUR YEARS AS OF OCTOBER 16, 1988 THROUGH OCTOBER 16, 1991 FOR JOLENE K. NEWTON FOR PROPERTY LOCATED AT 915% W. LASALLE There was no staff report. THERE WAS NO STAFF REPORT f. Commission authorization requested to file Real Property Tax Abatement Petition on behalf of West Washington Homes Partnership LP. Mrs. Kolata noted that since the Commission still owns a portion of the property on which West Washington Homes will be constructed, we must be one of the signatories on the application for property tax abatement. This is not consideration of the abatement itself. -7- c� South Bend Redevelopment Commission Regular Meeting - June 26, 1992 6. NEW BUSINESS (Cont.) f. continued... Mr. Luecke noted that West Washington Homes will be ready to break ground in a couple of months. Since this is low income housing, tax abatement is needed to make the pro forma work. They will be requesting a ten year abatement. Although the City's guidelines require that a project have $4 million of hard costs to qualify for ten years of abatement and West Washington Homes will only have $3.4 million of hard costs, they will ask for an exception based on the fact that it will be rented 1001 to low income persons as opposed to the guidelines requirement of 20* rented to low and moderate income persons. Upon a motion by Mr. Faccenda, seconded by Mr. Piasecki and unanimously carried, the Commission authorized filing a Real Property Tax Abatement Petition on behalf of West Washington Homes Partnership LP. 7. PROGRESS REPORTS Mrs. Kolata reported that the Redevelopment Authority refinanced the St. Joseph /Wayne Street Garage on June 23. The savings, after issuance costs, is approximately $244,000. The present value savings is approximately $117,000. Prudential Securities was the low bidder with a very competitive bid. Mrs. Kolata noted that the refinancing of the 1985/1986 TIF bonds will take place in a couple of weeks. 8. NEXT COMMISSION MEETING The Next Meeting of the Redevelopment Commission is scheduled for July 10, 1992 at 10:00 a.m. COMMISSION AUTHORIZED FILING A REAL PROPERTY TAX ABATEMENT PETITION ON BEHALF OF WEST WASHINGTON HOMES PARTNERSHIP LP PROGRESS REPORTS NEXT COMMISSION MEETING South Bend Redevelopment Commission Regular Meeting - June 26, 1992 FI c� There being no further business to come before the Redevelopment Commission, Mr. Faccenda made a motion that the meeting be adjourned. Mr. Piasecki seconded the motion and the meeting was adjourned at 10:45 a.m. Paula N. Auburn, President Wz ADJOURNMENT Ann�E. Kolata, Director