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HomeMy WebLinkAboutRM 07-24-92G SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING July 24, 1992 10:00 A.M. Presiding Officer: Mr. Roman Piasecki Vice - President 1. ROLL CALL Members Present: Legal Counsel: Redevelopment Staff: Bureau of Housing Staff: News Media: Others: 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Ms. Paula N. Auburn, President Mr. Roman J. Piasecki, Vice President Mr. Michael Donoho, Secretary Mr. Philip J. Faccenda, Assistant Secretary Ms. Charlotte Huddleston Ms. Jenny Pitts Manier Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Mr. Michael Beitzinger, Economic Dev. Specialist Mr. Ted Leverman, Assistant Director Mr. Don Porter, South Bend Tribune Mr. Jeff Gibney, South Bend Heritage Foundation Mr. Philip E. Bush Mr. Jack D. Bush Mr. Hal D. Gartee Mr. Troy L. Padon 2. APPROVAL OF MINUTES Upon a motion made by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the minutes of the Regular Meeting of Friday, July 10, 1992, were approved. 3. APPROVAL OF CLAIMS There were no Claims. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS ORIN There was no Old Business. -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF JULY 10, 1992 THERE WERE NO CLAIMS THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS CSouth Bend Redevelopment Commission Regular Meeting - July 24, 1992 6. NEW BUSINESS a. Public Hearing on Resolution No. 1077 amending the South Bend Central Development Area Development Plan. Mr. Piasecki asked if there was any objection to these items being entered into the record. There was no objection and they were so entered. Mrs. Kolata asked to enter the following items into the record: 1) an original of the Notice of Hearing on Amendment to the South Bend Central Development Area Development Plan; 2) an affidavit of Carol Smith, Classified Manager of the South Bend Tribune, that the Notice of Hearing was published in that daily newspaper on July 10, 1992; 3) an affidavit of Lisa J. Andrysiak, managing editor of the Tri- County News, that the Notice of Hearing was published in that weekly newspaper on July 10, 1992; 4) a memo from Cleo Hickey stating that on July 10, 1992 she sent a copy of the 6W Notice of Hearing to the affected property owners and registered IL neighborhood associations; 5) a copy of Resolution No. 1077 which is the subject of the public hearing; and 6) as of 10:00 a.m. on July 10, 1992, 0 written remonstrances were received. Mr. Piasecki asked if there was any objection to these items being entered into the record. There was no objection and they were so entered. -2- Mrs. Kolata explained that the amendment to the Development Plan for the South Bend Central Development Area adds four properties to the acquisition list. All four properties are in Monroe Park. All are residential properties, located at 628 S. Rush, 611 S. Clinton, 516 S. St. Joseph, and 530 S. Carroll. We intend to purchase the property and offer them for disposition for residential rehab. These four were selected because of their physical condition. We have funds remaining from the bond issue which can be used for the acquisition and think it is important to the Monroe Park area to see these properties improved. -2- South Bend Redevelopment Commission Regular Meeting - July 24, 1992 6. NEW BUSINESS (Cont.) a. continued.. Mr. Piasecki opened the Public Hearing. PHILIP BUSH: I own the property at 628 S. Rush. We have worked hard to get that thing ready for rental. We haven't succeeded in renting it yet and we haven't yet finished with the painting, but I don't know why it would be called into question. The structure is very good. We have even taken some of the paint off of the outside, up to a certain level, in anticipation of painting it. I'm not quite sure what your thinking is on it. We feel it's a good house. MRS. KOLATA: You wanted to use it for a rental? You don't live in the property. MR. BUSH: No I don't anticipate living there. MRS. KOLATA. Do you have a time schedule for getting it painted and doing the rehab? MR. BUSH: Twice within the last month we've had it rented, but the renter hasn't shown up to complete it. It's really not ready to rent right now. It was supposed to have been last fall. I had a manger taking care of it. He got occupied taking care of other things and didn't finish this job. That's about all it needs. We put in a new kitchen, and redid the bathroom upstairs. MRS. HUDDLESTON: I don't know how large it is. MR. BUSH: It has a large living room, dining room, kitchen and bathroom on the first floor and a full basement. Incidentally, I have no terrible claim on it. If you want it, and the price is right, I don't mind selling it. 6 IL MRS. KOLATA How long have you owned it? -3- PUBLIC HEARING ON RESOLUTION NO. 1077 South Bend Redevelopment Commission f4w) Regular Meeting - July 24, 1992 6. NEW BUSINESS (Cont.) a. continued... MR. BUSH: I bought it at tax sale last year. We had it virtually ready by November 1 last year. It would be done now except that we got pressure from another house. Mr. Piasecki closed the Public Hearing for whatever action the Commission desired to take. b. Commission approval requested for Resolution No. 1077. Mrs. Kolata noted that the Commission does not want to purchase property that can be rehabilitated privately. She suggested that the Commission adopt Resolution No. 1077 and add 628 S. Rush Street to the acquisition list, but not proceed with sending a purchase offer until staff has met with Mr. Bush and looked at the house again. If we feel certain that Mr. Bush can complete his rehab on a reasonable schedule we would not need to acquire the property. Mrs. Kolata expressed concern that the previous owner might be able to redeem the property from the tax sale. Upon a motion by Ms. Huddleston, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1077 amending the South Bend Central Development Area Development Plan. c. Commission approval requested for Resolution No. 1084 approving an application for real property tax deduction for property located in the 1200 block of West Washington in the West Washington - Chapin Development Area. (West Washington Homes Partnership L.P.) Mr. Beitzinger read the staff report on the tax abatement. West Washington Homes Partnership L.P. is a newly formed -4- COMMISSION APPROVED RESOLUTION NO. 1077 AMENDING THE SOUTH BEND CENTRAL DEVELOPMENT AREA DEVELOPMENT PLAN partnership which will develop 65 units of affordable housing in the 1200 block of West Washington. Twenty -two duplexes and seven triplexes will be built on four acres of land which has been acquired and cleared by the Redevelopment Commission. All 65 apartments will be rented to low- income families. The total hard cost of new construction is $3,450,000. The estimated market value of the property upon completion of the project is $1,600,000 (using the income method of valuation). The project will create seventy (70) construction jobs to build the project. A property management firm will hire a property manager and a maintenance person. The property is properly zoned for the proposed use. The property is located in an area presently designated as a Tax Abatement Impact Area by the South Bend Common Council. The project is also located in an Economic Development Target Area. and in the West Washington- Chapin Redevelopment Blighted Area. It is also hw , located in a Tax Incremental Financing Allocation Area. The petitioner qualifies for 6 years of real property tax abatement under the tax abatement ordinance. However, they would like to be considered for ten years of abatement. According to the tax abatement guidelines, multi - family housing projects qualify for ten years of abatement if hard costs are greater than $4,000,000 and at least 20* of the units are available for occupancy by low or moderate income families. The petitioner feels that the project should be considered for a 10 year abatement because 1) 100* of the units will be rented to low income families; 2) the $3,450,000 in hard dollar costs is 80V of the $4,000,000 guideline for a 10 year abatement and far exceeds the $1,000,000 guideline set for a 6 year abatement; and 3) the project is an integral part of the neighborhood's larger revitalization plan and the City's redevelopment efforts in the neighborhood. -5- A Both a six year and a ten year abatement schedule were prepared for consideration. Under the six year schedule and a project value of $1,600,000, the taxes to be paid without abatement are estimated at $452,611. With abatement the taxes are estimated to be $187,079. Therefore, the cost of the six year abatement would be approximately $265,532. Under the ten year schedule and a project value of $1,600,000, the taxes to be paid without abatement are estimated at $754,352. With abatement the taxes are estimated to be $380,948. Therefore, the cost of the ten year abatement would be approximately $373,404. The staff recommends supporting the ten year abatement based on the reasons listed previously. Mr. Gibney explained the difference between the project cost and the after Owl construction value of the project. The value of the project was determined by the income approach, which, is low because these units are rent controlled. Upon a motion by Mr. Faccenda, seconded by Ms. Huddleston and unanimously carried, the Commission approved Resolution No. 1084 approving an application for real property tax deduction for property located in the 1200 block of West Washington in the West Washington- Chapin Development Area. (West Washington Homes Partnership) Mr. Donoho declared a conflict of interest and abstained from the vote. d. Commission auvroval reauested for Certificate of Waiver for Neighborhood Housing Services for property located at 908 South Bend Avenue. -6- COMMISSION APPROVED RESOLUTION NO. 1084 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE 1200 BLOCK OF WEST WASHINGTON STREET IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA (WEST WASHINGTON HOMES PARTNERSHIP) ORIN Mrs. Kolata noted that under the Rental Rehab Program 10* of a loan may be forgiven each year when the conditions of the Rental Rehab Program are met. The Certificate of Waiver certifies that the conditions have been met and authorizes the loan forgiveness. Upon a motion by Mr. Faccenda, seconded by Ms. Huddleston and unanimously carried, the Commission approved the Certificate of Waiver for Neighborhood Housing Services in the amount of $1,600 for the year ending January 17, 1992 for property located at 908 South Bend Avenue. e. Commission approval requested for Certificate of Waiver for Neighborhood Housing Services for property located at 916 South Bend Avenue. Upon a motion by Ms. Auburn, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Certificate of ow Waiver for Neighborhood Housing Services in the amount of $850 for the year ending January 17, 1992 for property located at 916 South Bend Avenue. f. Commission approval requested for Certificate of Waiver for Neighborhood Housing Services for property located at 920 South Bend Avenue. Upon a motion by Ms. Huddleston, seconded by Ms. Auburn and unanimously carried, the Commission approved the Certificate of Waiver for Neighborhood Housing Services in the amount of $850 for the year ending January 17, 1992 for property located at 920 South Bend Avenue. g. Commission approval requested for Certificate of Waiver for Neighborhood Housing Services for property located at 922 South Bend Avenue. COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR NEIGHBORHOOD HOUSING SERVICES IN THE AMOUNT OF $1,600 FOR THE YEAR ENDING JANUARY 17, 1992 FOR PROPERTY LOCATED AT 908 SOUTH BEND AVENUE COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR NEIGHBORHOOD HOUSING SERVICES IN THE AMOUNT OF $850 FOR THE YEAR ENDING JANUARY 17, 1992 FOR PROPERTY LOCATED AT 916 SOUTH BEND AVENUE COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR NEIGHBORHOOD HOUSING SERVICES IN THE AMOUNT OF $850 FOR THE YEAR ENDING JANUARY 17, 1992 FOR PROPERTY LOCATED AT 920 SOUTH BEND AVENUE J - 7 Upon a motion by Mr. Donoho, seconded by COMMISSION APPROVED THE Ms. Auburn and unanimously carried, the CERTIFICATE OF WAIVER FOR Commission approved the Certificate of NEIGHBORHOOD HOUSING SERVICES IN Waiver for Neighborhood Housing Services THE AMOUNT OF $850 FOR EACH OF in the amount of $850 for each of three THREE YEARS ENDING JANUARY 17, years ending January 17, 1992 for 1992 FOR PROPERTY LOCATED AT 922 property located at 922 South Bend SOUTH BEND AVENUE Avenue. 7. PROGRESS REPORTS Mrs. Kolata reported that the refinancing of PROGRESS REPORTS the Wayne Street Garage closed on July 22. Mrs. Kolata also reported that on July 22 the Local Property Tax Control Board held a hearing on the lease for the Airport 2010 bond issue. They recommended approval to the State Tax Board. Also, the public works improvements in the Airport 2010 area are moving along on schedule. Mayflower Road and F. Jay Nimtz Parkway should be complete this fall. We expect to extend the public works over the bridge across U.S. 31 in an additional contract yet this summer. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment NEXT COMMISSION MEETING Commission will be August 7, 1992 at 10:00 a.m. in the Board of Public Works meeting room. The Redevelopment Commission is changing its meeting time from the second and fourth Friday of the month to the first and third Friday. The meetings will also be moved to the Board of Works room on the 13th floor. 9. ADJOURNMENT There being no further business to come ADJOURNMENT before the Redevelopment Commission, Ms. Auburn made a motion that the meeting be adjourned. Mr. Donoho seconded the motion and the meeting was adjourned at 10:33 a.m. ^!a a c Vice PTesiclent Anti E. Kolata, Director -8-