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Home My WebLink AboutRM 08-07-92ow • SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 7, 1992 1308 County -City Building 10:00 A.M. 227 W. Jefferson Boulevard Presiding Officer: Mr. Roman Piasecki South Bend, Indiana 46601 Vice - President 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Redevelopment Staff: Bureau of Housing Staff: News Media: Others: Mr. Roman J. Piasecki, Vice President Mr. Philip J. Faccenda, Assistant Secretary Ms. Charlotte Huddleston Ms. Paula N. Auburn, President Mr. Michael Doncho, Secretary Ms. Jenny Pitts Manier Mrs. Ann Kolata, Director Mrs. Martha Lantz, Recording Secretary Mr. Michael Beitzinger, Economic Dev. Specialist Mr. Ted Leverman, Assistant Director Mr. Don Porter, South Bend Tribune Mr. Thom Howell, U -93 Mr. Carter Wolf, Center City Associates Mr. Richard Hill, Baker & Daniels Mr. Randy Rompola, Baker & Daniels Mr. Bill Schell, Patterson Dental Company Mr. John Peddycord 2. APPROVAL OF MINUTES Upon a motion made by Mr. Faccenda, seconded by Mrs. Huddleston and unanimously carried, the minutes of the Regular Meeting of Friday, July 24, 1992, were approved. 3. APPROVAL OF CLAIMS ADMIN 1992 Doug Carpenter Federal Express Ralph Lauver South Bend Tribune -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, JULY 24, 1992 $ 800.00 28.50 500.00 18.33 .South Bend Redevelopment Commission egular Meeting - August 7, 1992 3. APPROVAL OF CLAIMS (Cont.) ADMIN 1992 continued... Tri- County News United Parcel Service Ziker & Company Catering Petty Cash St. Joseph County Recorder Equipment Services Joseph Podell Company TOTAL STUDEBAKER CORRIDOR BOND Estate of Charles Livengood St. Joseph County Treasurer Petty Cash Richard McCloskey Margret Oliver and Housing Development Corp. �. Jack Thomas Indiana Michigan Power Co. Glo Worm Lounge Jack Thomas NIPSCO Indiana Michigan Power Co. C.C. Phillips TOTAL GRAND TOTAL Upon a motion made by Mrs. Huddleston, seconded by Mr. Faccenda and unanimously carried, the Commission formally approved the claims submitted August 7, 1992 for payment. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. -2- 24.02 9.00 53.00 90.17 62.00 33.10 200.00 $ 1818.12 $ 6,872.65 1,277.35 8.00 1,500.00 1,830.00 650.00 23.14 20,000.00 5,250.00 13.13 20.33 1,400.00 $ 38,844.60 Q An CC7 77 COMMISSION FORMALLY APPROVED CLAIMS SUBMITTED AUGUST 7, 1992 FOR PAYMENT THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Cegular Meeting - August 7, 1992 _L 6. NEW BUSINESS a. Filing of Resolution No. 1085 appropriating money from the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) Special Fund to the Parking Garage Principal and Interest Account of the Redevelopment District Bond Fund and setting 10:00 a.m., Aucrust 21, 1992, for a Public Hearing on Resolution No. 1085. Mrs. Kolata noted that items 6.a. and 6.b. are both related to Lease /Purchase bonds that the Redevelopment Authority issued and the Commission is responsible for making annual lease payments. Each year the Commission must set aside money into a certain fund or levy a tax. There is enough money from tax increment to make the payment, but it must be appropriated to the fund. Resolution No. 1085 moves $453,010.39 for the 1993 lease payments on the St. Joseph /Wayne Parking Garage bond and Resolution No. 1086 appropriates $239,500.00 for the 1993 lease payments on the 1990 TIF bond for public improvements in the downtown and Monroe Park. No action is being taken on the resolutions at this time, except for setting the public hearings. Upon a motion by Mr. Faccenda, seconded COMMISSION ACCEPTED RESOLUTION by Mrs. Huddleston and unanimously NO. 1085 FOR FILING AND SET 10:00 carried, the Commission accepted A.M., AUGUST 21, 1992, FOR A Resolution No. 1085 for filing and set PUBLIC HEARING ON RESOLUTION 10:00 a.m., August 21, 1992, for a Public NO. 1085 Hearing on Resolution No. 1085. b. Filina of Resolution No. 1086 appropriating money from the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) Special Fund to the South Bend Central Development Area Public Improvement Project Principal and Interest Account of the Redevelopment District Bond Fund and setting 10:00 a.m., August 21, 1992, for a Public Hearina on Resolution No. 1086. MCIC _ South Bend Redevelopment Commission egular Meeting - August 7, 1992 6. NEW BUSINESS (Cont b. continued... Upon a motion by Ms. Huddleston, seconded by Mr. Faccenda and unanimously carried, the Commission accepted Resolution No. 1086 for filing and set 10:00 a.m., August 21, 1992, for a Public Hearing on Resolution No. 1086. c. Commission approval requested for Resolution No. 1087, reducing the annual rentals on the Lease for the Palais Royale Proiect and approving the Execution of an Addendum to the Lease. Mrs. Kolata noted that the Redevelopment Authority held a bond sale on August 4 for the Palais Royale bond issue. The successful bidder was Robert W. Baird and Co. with a net interest rate of 7.0189W. ON It was a taxable bond because of the rental space on the first floor of the Palais. As a result of the interest rate, the lease payments which were estimated at $110,000 will be reduced to $98,500 per payment. The other change in the Addendum is to increase the amount of money set aside to pay the bond trustee each year from $2000 to $3000. Upon a motion by Ms. Huddleston, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1087 reducing the annual rentals on the Lease for the Palais Royale Project and approving the execution of an Addendum to the Lease. d. Commission approval requested for Resolution No. 1088 establishing certain funds and accounts in connection with the Lease dated as of July 1, 1992, between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority relating to the Blackthorn Golf Course Proiect and other related matters. �h 6' Mrs. Kolata explained that Resolution No. 1088 sets up the various accounts -4- COMMISSION ACCEPTED RESOLUTION NO. 1086 FOR FILING AND SET 10:00 A.M. AUGUST 21, 1992, FOR A PUBLIC HEARING ON RESOLUTION NO. 1086 COMMISSION APPROVED RESOLUTION NO. 1087 REDUCING THE ANNUAL RENTALS ON THE LEASE FOR THE PALAIS ROYALE PROJECT AND APPROVING THE EXECUTION OF AN ADDENDUM TO THE LEASE South Bend Redevelopment Commission Cegular Meeting - August 7, 1992 6. NEW BUSINESS (Cont.) d. continued... necessary to make the lease payments for the Blackthorn Golf Course. It also states that if there are not enough funds in the account by August 1 of each year the Commission will levy a tax to make the payment. The bond is structured so that it should not be necessary to levy a tax to make the payments. -5- COMMISSION APPROVED RESOLUTION NO. 1088 ESTABLISHING CERTAIN FUNDS AND ACCOUNTS IN CONNECTION WITH THE LEASE DATED AS OF JULY 1, 1992 BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE SOUTH BEND REDEVELOPMENT AUTHORITY RELATING TO THE BLACKTHORN GOLF COURSE PROJECT AND OTHER RELATED MATTERS Upon a motion by Mr. Faccenda, seconded by Mrs. Huddleston and unanimously carried, the Commission approved Resolution No. 1088 establishing certain funds and accounts in connection with the Lease dated as of July 1, 1992, between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority relating to the Blackthorn Golf Course Project and other related matters. ' ' e. Commission approval requested for Resolution No. 1089 approving an application for real property tax deduction for property located at 4303 Technology Drive in the Toll Road Industrial Park. (Patterson Dental Company) Mike Beitzinger gave the staff report on the tax abatement. Patterson Dental Company, a Minnesota based Corporation, is a major supplier of dental products nationally to dentists, dental clinics, and dental laboratories. The company presently has over 70 sales offices nationwide and is in the process of consolidating their distribution network to seven warehouses. Patterson Dental Company proposes to build a 52,500 sq. ft. distribution facility on 5.62 acres in the Airport Industrial Park. The facility will be a consolidation of three distribution centers in Chicago, Detroit and Milwaukee. The South Bend location R" will serve a ten state area. -5- COMMISSION APPROVED RESOLUTION NO. 1088 ESTABLISHING CERTAIN FUNDS AND ACCOUNTS IN CONNECTION WITH THE LEASE DATED AS OF JULY 1, 1992 BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE SOUTH BEND REDEVELOPMENT AUTHORITY RELATING TO THE BLACKTHORN GOLF COURSE PROJECT AND OTHER RELATED MATTERS C,,,-,South Bend Redevelopment Commission egular Meeting - August 7, 1992 6. NEW BUSINESS (Cont.) e. continued... The total estimated cost of new construction is $1,500,000. The project will create forty -two new permanent full -time jobs in the first year representing an annual payroll of $975,000. The property is properly zoned for the proposed use. The property is not located in an area presently designated as a Tax Abatement Impact Area, but is located in a Tax Incremental Financing Allocation Area. The petitioner qualifies for 6 years of real property tax abatement under the Tax Abatement Ordinance. Without abatement, the project is 0, expected to generate $423,225 in new taxes over the six year period. With abatement, the project is expected to generate approximately $174,933 of new taxes over the same period. Therefore, the cost of the abatement is approximately $248,292. Mr. Schell noted that Patterson Dental is a growing, privately owned, ESOP, company in Minneapolis, growing at about 30% per year. Because of that growth and some expiring leases, they have decided to move to South Bend. Mrs. Kolata noted that Patterson Dental brought their plans for their building before Design Review recently and plan a very nice building. Upon a motion by Mr. Faccenda, seconded by Mrs. Huddleston and unanimously carried, the Commission approved Resolution No. 1089 approving an application for real property tax deduction for property located at 4303 Technology Drive in the Toll Road Industrial Park. (Patterson Dental Company) -6- COMMISSION APPROVED RESOLUTION NO. 1089 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 4303 TECHNOLOGY DRIVE IN THE TOLL ROAD INDUSTRIAL PARK (PATTERSON DENTAL COMPANY) South Bend Redevelopment Commission Regular Meeting - August 7, 1992 6. NEW BUSINESS (Cont.) f. Commission approval requested for Certificate of Waiver for the Housing Development Corporation of St. Joseph County for property located at 239 LaPorte. Mrs. Kolata noted that items 6.f. through 6.o are all related to the Rental Rehab Program. Under the Rental Rehab Program 10t of the loan is waived each year if the conditions of the program are met. These units have been inspected and meet the guidelines. Upon a motion by Mr. Faccenda, seconded by Mrs. Huddleston and unanimously carried, the Commission approved the Certificate of Waiver for the Housing Development Corporation in the amount of $526.50 as of October 18, 1991 for property located at 1813 W. Linden. h. Commission approval reauested for Certificate of Waiver for the Housing Development Corporation of St. Joseph County for property located at 1711 S. St. Joseph. Upon a motion by Mr. Faccenda, seconded by Mrs. Huddleston and unanimously carried, the Commission approved the Certificate of Waiver for the Housing Development Corporation in the amount of $1,500 as of March 1, 1992 for property located at 1711 S. St. Joseph. -7- COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR THE HOUSING DEVELOPMENT CORPORATION IN THE AMOUNT OF $1,400 AS OF MAY 1, 1991 AND MAY 1, 1992 FOR PROPERTY LOCATED AT 239 LAPORTE COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR THE HOUSING DEVELOPMENT CORPORATION IN THE AMOUNT OF $526.50 AS OF OCTOBER 18, 1991 FOR PROPERTY LOCATED AT 1813 W. LINDEN COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR THE HOUSING DEVELOPMENT CORPORATION IN THE AMOUNT OF $1,500 AS OF MARCH 1, 1992 FOR PROPERTY LOCATED AT 1711 S. ST. JOSEPH Upon a motion by Mr. Faccenda, seconded by Mrs. Huddleston and unanimously carried, the Commission approved the Certificate of Waiver for the Housing Development Corporation in the amount of $1,400 as of May 1, 1991 and May 1, 1992 for property located at 239 LaPorte. g. Commission approval requested for Certificate of Waiver for the Housing Development Corporation of St. Joseph County for property located at 1813 W. Linden. Upon a motion by Mr. Faccenda, seconded by Mrs. Huddleston and unanimously carried, the Commission approved the Certificate of Waiver for the Housing Development Corporation in the amount of $526.50 as of October 18, 1991 for property located at 1813 W. Linden. h. Commission approval reauested for Certificate of Waiver for the Housing Development Corporation of St. Joseph County for property located at 1711 S. St. Joseph. Upon a motion by Mr. Faccenda, seconded by Mrs. Huddleston and unanimously carried, the Commission approved the Certificate of Waiver for the Housing Development Corporation in the amount of $1,500 as of March 1, 1992 for property located at 1711 S. St. Joseph. -7- COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR THE HOUSING DEVELOPMENT CORPORATION IN THE AMOUNT OF $1,400 AS OF MAY 1, 1991 AND MAY 1, 1992 FOR PROPERTY LOCATED AT 239 LAPORTE COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR THE HOUSING DEVELOPMENT CORPORATION IN THE AMOUNT OF $526.50 AS OF OCTOBER 18, 1991 FOR PROPERTY LOCATED AT 1813 W. LINDEN COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR THE HOUSING DEVELOPMENT CORPORATION IN THE AMOUNT OF $1,500 AS OF MARCH 1, 1992 FOR PROPERTY LOCATED AT 1711 S. ST. JOSEPH C CSouth Bend Redevelopment Commission Regular Meeting - August 7, 1992 6. NEW BUSINESS (Cont.) i. Commission approval requested for Certificate of Waiver for the Housing Development Comoration of St. Joseph County for property located at 119 N. Elm. Upon a motion by Mr. Faccenda, seconded by Mrs. Huddleston and unanimously carried, the Commission approved the Certificate of Waiver for the Housing Development Corporation in the amount of $850 as of October 10, 1990 and 1991 for property located at 119 N. Elm. j. Commission approval requested for Certificate of Waiver for the Housing Development Corporation of St. Joseph County for property located at 743 N. Blaine. Upon a motion by Mr. Faccenda, seconded jWj IL by Mrs. Huddleston and unanimously carried, the Commission approved the Certificate of Waiver for the Housing Development Corporation in the amount of $750.00 as of October 1, 1991 for property located at 743 N. Blaine. k. Commission approval requested for Certificate of Waiver for the Housing Development Corporation of St. Joseph County for property located at 431 Cottage Grove. Upon a motion by Mr. Faccenda, seconded by Mrs. Huddleston and unanimously carried, the Commission approved the Certificate of Waiver for the Housing Development Corporation in the amount of $1,740 as of December 22, 1989, 1990, and 1991 for property located at 431 Cottage Grove. 1. Commission approval requested for Certificate of Waiver for the Housing Development Corporation of St. Joseph County for property located at 511 N. Blaine. -8- COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR THE HOUSING DEVELOPMENT CORPORATION IN THE AMOUNT OF $850 AS OF OCTOBER 10, 1990 AND 1991 FOR PROPERTY LOCATED AT 119 N. ELM COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR THE HOUSING DEVELOPMENT CORPORATION IN THE AMOUNT OF $750.00 AS OF OCTOBER 1, 1991 FOR PROPERTY LOCATED AT 743 N. BLAINE COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR THE HOUSING DEVELOPMENT CORPORATION IN THE AMOUNT OF $1,740 AS OF DECEMBER 22, 1989, 1990 AND 1991 FOR PROPERTY LOCATED AT 431 COTTAGE GROVE Upon a motion by Mr. Faccenda, seconded COMMISSION APPROVED THE by Mrs. Huddleston and unanimously CERTIFICATE OF WAIVER FOR THE carried, the Commission approved the HOUSING DEVELOPMENT CORPORATION Certificate of Waiver for the Housing IN THE AMOUNT OF $870 AS OF JULY Development Corporation in the amount of 28, 1989, 1990 AND 1991 FOR $870 as of July 28, 1989, 1990, and 1991 PROPERTY LOCATED AT 511 N. BLAINE for property located at 511 N. Blaine. m. Commission approval requested for Certificate of Waiver for the Housing Development Corporation of St Joseph County for property located at 208 E Indiana. Upon a motion by Mr. Faccenda, seconded COMMISSION APPROVED THE by Mrs. Huddleston and unanimously CERTIFICATE OF WAIVER FOR THE carried, the Commission approved the HOUSING DEVELOPMENT CORPORATION Certificate of Waiver for the Housing IN THE AMOUNT OF $1,740 AS OF Development Corporation in the amount of JULY 28, 1991 FOR PROPERTY $1,740 as of July 28, 1991 for property LOCATED AT 208 E. INDIANA located at 208 E. Indiana. n. Commission approval requested for Certificate of Waiver for the Housing Development Corporation of St Joseph ON County for property located at 901 905 No and 909 Lincolnway West. Upon a motion by Mr. Faccenda seconded COMMISSION APPROVED THE by Mrs. Huddleston and unanimously CERTIFICATE OF WAIVER FOR THE carried, the Commission approved the HOUSING DEVELOPMENT CORPORATION Certificate of Waiver for the Housing IN THE AMOUNT OF $4,500 AS OF Development Corporation in the amount of MAY 30, 1991 AND MAY 30, 1992 FOR $4,500 as of May 30, 1991 and May 30, PROPERTY LOCATED AT 901, 905 AND 1992 for property located at 901, 905, 909 LINCOLNWAY WEST and 909 Lincolnway West. o. Commission approval requested for Certificate of Waiver for the Housing Development Corporation of St Joseph County for property located at 422 N College Upon a motion by Mr. Faccenda, seconded COMMISSION APPROVED THE by Mrs. Huddleston and unanimously CERTIFICATE OF WAIVER FOR THE carried, the Commission approved the HOUSING DEVELOPMENT CORPORATION Certificate of Waiver for the Housing IN THE AMOUNT OF $2,600 AS OF Development Corporation in the amount of MARCH 4, 1992 FOR PROPERTY $2,600 as of March 4, 1992 for property LOCATED AT 422 N. COLLEGE located at 422 N. College. p. Filing of Resolution No. 1090 IL appropriating money from the South Bend Central Allocation Area (South Bend -9- C South Bend Redevelopment Commission ,,Regular Meeting - August 7, 1992 6. NEW BUSINESS (Cont.) p. continued... Allocation Area No lA Special Fund to the Palais Royale Acauisition Proiect Principal and Interest Account of the Redevelopment District Bond Fund and setting 10:00 a.m. on September 4 1992 for a Public Hearing on Resolution No 1090. Mrs. Kolata noted that we missed the deadline for publishing the Notice of Public Hearing in time to hold the Hearing on August 21. However, Baker & Daniels has said that they can close on the bond before the Commission approves this resolution. The resolution authorizes the transfer of $295,500 of TIF money to the account from which Palais Royale bond payments will be made. The $295,500 is the total for the three payments due January 28, 1993, July 28, 1993 and January 28, 1994. Upon a motion by Ms. Huddleston, seconded by Mr. Faccenda and unanimously carried, the Commission accepted Resolution No. 1090 for filing and set 10:00 a.m. on September 4, 1992 as the Public Hearing on Resolution No. 1090. 7. PROGRESS REPORTS Mrs. Kolata reported that the addition to South Bend Tribune building is moving along well. The annex demolition should be complete by the end of August. They are on schedule with the first building. Mr. Wolf noted that a new retail shop opened up on South Michigan next to Let's Talk Travel. It is called Horse 'n Around. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for August 21, 1992 at 10:00 a.m. -10- COMMISSION ACCEPTED RESOLUTION NO. 1090 FOR FILING AND SET 10:00 A.M. ON SEPTEMBER 4, 1992 AS THE PUBLIC HEARING ON RESOLUTION NO. 1090 PROGRESS REPORTS NEXT COMMISSION MEETING C CSouth Bend Redevelopment Commission Regular Meeting - August 7, 1992 9. ADJOURNMENT There being no further business to come before the Commission, Mr. Faccenda made a motion that the meeting be adjourned. Mrs. Huddleston seconded the motion and the meeting was adjourned at 10:25 a.m. Paula N. Auburn, President .L -11- ADJOURNMENT Ann E. Kolata, Director