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Home My WebLink AboutRM 07-10-92.41� IC SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING July 10, 1992 1200 County -City Building 10:00 a.m. 227 W. Jefferson Boulevard Presiding Officer: Ms. Paula N. Auburn South Bend, Indiana 46601 President 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Redevelopment Staff: %W�' Bureau of Housing Staff: News Media: 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. Mary Mueller Mr. Jon R. Hunt, Executive Director Mrs. Cheryl Phipps, Office Manager Ms. Cleo Hickey, Economic Dev. Specialist Mr. K.C. Pocius, Economic Dev. Specialist Mr. Michael Beitzinger, Economic Dev. Specialist Mr. John Fonash, Economic Dev. Specialist Mr. Ted Leverman, Assistant Director Mr. Don Porter, South Bend Tribune Mr. Thom Howell, U -93 Others: Mr. Carter Wolf, Center City Associates Mr. Randy Rompola, Baker & Daniels Mr. Myron Frasier, H. J. Umbaugh & Assoc. Mr. David Lerman, Steel Warehouse 2. APPROVAL OF MINUTES Upon a motion made by Mr. Piasecki, seconded COMMISSION APPROVED THE MINUTES by Mr. Donoho and unanimously carried, the OF THE REGULAR MEETING OF FRIDAY, minutes of the Regular Meeting of Friday, JUNE 26, 1992 June 26, 1992, were approved. 3. APPROVAL OF CLAIMS ADMIN 1992 Federal Express The Indianapolis Commercial TOTAL -1- $ 47.50 267.05 $ 314.55 N (�egular South Bend Redevelopment Commission Meeting - July 10, 1992 3. APPROVAL OF CLAIMS (Cont.) 4. STUDEBAKER CORRIDOR BOND NIPSCO $ 19.78 TOTAL $ 19.78 GRAND TOTAL $ 334.33 Upon a motion made by Mr. Doncho, seconded by COMMISSION FORMALLY APPROVED THE Mr. Piasecki and unanimously carried, the CLAIMS SUBMITTED JULY 10, 1992 Commission formally approved the claims FOR PAYMENT submitted July 10, 1992. There were no Communications. THERE WERE NO COMMUNICATIONS S. OLD BUSINESS There was no Old Business. THERE WAS NO OLD BUSINESS Ms. Auburn announced that items 6.r. and 6.s. AWNwill be added to the agenda. There were no IL objections and the items were so added. MW 6. NEW BUSINESS a. Receipt of bids for Parcel M4 -1 in the South Bend Central Development Area (402 -404 E. South Street). Mr. Hunt noted that 402 -404 E. South Street is the former L. Keen Building in Monroe Park. We offered it for bid again after it returned to the Commission recently. Four bid packets were picked up. No bids THERE WERE NO BIDS RECEIVED were received for the parcel. b. Public Hearincr on Resolution No. 1071 authorizing the execution of a Lease for certain public improvements on behalf of the Citv of South Bend and regarding other related matters. Mr. Hunt noted that Resolution No. 1071 is related to the Lease between the Redevelopment Authority and the Redevelopment Commission for Blackthorn -2- M South Bend Redevelopment Commission U- n egular Meeting - July 10, 1992 6. NEW BUSINESS (Cont.) b. continued... Golf Course in the Airport 2010 area. The Redevelopment Commission and Redevelopment Authority approved the form of Lease on June 26. Mr. Rompola noted that the term of the Lease is for a period not to exceed 20 years. The maximum rental payment is not to exceed $895,000. The Lease will go before the Common Council also. The State Tax Board will hold a hearing on the Lease on July 22. Mr. Frasier noted that the size of the bond is expected to be $5.5 million, depending on construction bids. This is an outstanding time to be selling bonds. Rates are the lowest they have been in twenty years. Coupling the circumstances of low interest rates with the term of this lease, it appears that the projected revenue from the golf course will be almost double what the payments on the bond will be. Mr. Piasecki asked about a bond rating for this bond. Mr. Frasier responded that we will be issuing bonds with the pledge that we would levy a tax to make the payment if that became necessary. However, a tax levy is far enough down the chain of pledges that we don't expect to ever need to levy taxes to make the payments. With that pledge, it will receive the same rating as if it were a tax supported bond issue. Ms. Auburn opened the Public Hearing for PUBLIC HEARING ON RESOLUTION anyone who wished to be heard. There was NO. 1071 no one who wished to speak regarding Resolution No. 1071. Ms. Auburn closed the Public Hearing for whatever action the Commission wished to take. c. Commission approval requested for Resolution No. 1071. -3- South Bend Redevelopment Commission Megular Meeting - July 10, 1992 6. NEW BUSINESS (Cont.) c. continued... Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1071 authorizing the execution of a Lease for certain public improvements on behalf of the City of South Bend and regarding other related matters. d. Commission approval requested for Resolution No. 1072 determining tax increment needed to satisfy obligations of the Commission regarding the Airport Economic Development Allocation Area No. 1. Mr. Hunt explained that every year about this time the Commission determines whether it needs the tax increment from its allocation areas to continue carrying out the plans and projects in the areas. Items 6.d., 6.e., 6.f., 6.g., and 6.h. are all resolutions determining that the increment is needed in the different geographic areas. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1072 determining tax increment needed to satisfy obligations of the Commission regarding the Airport Economic Development Allocation Area No. 1. e. Commission approval requested for Resolution No. 1073 determining tax increment needed to satisfy obligations of the Commission regarding the South Bend Central Allocation Area (South Bend Central Allocation Area No. 1A). Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1073 determining tax increment needed to satisfy obligations of the Commission regarding the South Bend Central Allocation Area (South Bend Central Allocation Area No. 1A). -4- COMMISSION APPROVED RESOLUTION NO. 1071 AUTHORIZING THE EXECUTION OF A LEASE FOR CERTAIN PUBLIC IMPROVEMENTS ON BEHALF OF THE CITY OF SOUTH BEND AND REGARDING OTHER RELATED MATTERS COMMISSION APPROVED RESOLUTION NO. 1072 DETERMINING TAX INCREMENT NEEDED TO SATISFY OBLIGATIONS OF THE COMMISSION REGARDING THE AIRPORT ECONOMIC DEVELOPMENT ALLOCATION AREA NO. 1 COMMISSION APPROVED RESOLUTION NO. 1073 DETERMINING TAX INCREMENT NEEDED TO SATISFY OBLIGATIONS OF THE COMMISSION REGARDING THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND CENTRAL ALLOCATION AREA NO. 1A) _,South Bend Redevelopment Commission "Regular Meeting - July 10, 1992 6. NEW BUSINESS (Cont.) f. Commission approval requested for Resolution No. 1074 determining tax increment needed to satisfy obligations of the Commission regarding the Rum Village Industrial Park Allocation Area (South Bend Allocation Area No. 4). Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1074 determining tax increment needed to satisfy obligations of the Commission regarding the Rum Village Industrial Park Allocation Area (South Bend Allocation Area No. 4). g. Commission approval requested for Resolution No. 1075 determining tax increment needed to satisfy obligations of the Commission regarding the Studebaker Corridor Allocation Area (South Bend Allocation Area No. 6). Upon a motion b Mr. Donoho seconded b P Y Y Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1075 determining tax increment needed to satisfy obligations of the Commission regarding the Studebaker Corridor Allocation Area (South Bend Allocation Area No. 6). h. Commission approval requested for Resolution No. 1076 determining tax increment needed to satisfy obligations of the Commission regarding the West Washington - Chapin Allocation Area (West Washington - Chapin Allocation Area No. lA Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1076 determining tax increment needed to satisfy obligations of the Commission regarding the West Washington- Chapin Allocation Area (West Washington- Chapin Allocation Area No. 1A). -5- COMMISSION APPROVED RESOLUTION NO. 1074 DETERMINING TAX INCREMENT NEEDED TO SATISFY OBLIGATIONS OF THE COMMISSION REGARDING THE RUM VILLAGE INDUSTRIAL PARK ALLOCATION AREA (SOUTH BEND CENTRAL ALLOCATION AREA NO. 4) COMMISSION APPROVED RESOLUTION NO. 1075 DETERMINING TAX INCREMENT NEEDED TO SATISFY OBLIGATIONS OF THE COMMISSION REGARDING THE STUDEBAKER CORRIDOR ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 6) COMMISSION APPROVED RESOLUTION NO. 1076 DETERMINING TAX INCREMENT NEEDED TO SATISFY OBLIGATIONS OF THE COMMISSION REGARDING THE WEST WASHINGTON- CHAPIN ALLOCATION AREA (WEST WASHINGTON - CHAPIN ALLOCATION AREA NO. 1A) South Bend Redevelopment Commission CR; gular Meeting - July 10, 1992 6. NEW BUSINESS (Cont.) i. Filing of Resolution No. 1077 amending the Development Plan for the South Bend Central Development Area and setting 10:00 a.m. on July 24, 1992 as the time of Public Hearing on Resolution No. 1077. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission accepted Resolution No. 1077 for filing and set 10:00 a.m. on July 24, 1992 as the time of Public Hearing on Resolution No. 1077. j. Commission approval requested for Resolution No. 1078 approving an application for real property tax deduction for property located at 2722 Tucker Drive in the Rum Village Industrial Park. (Steel Warehouse Co., Inc.) Mr. Fonash read the staff report on the real and personal abatements. Steel Warehouse is a steel service center engaged primarily in the processing and disbursing of flat rolled, low carbon steel and steel products. They also warehouse, on the premises, a substantial amount of inventory, both for themselves and for third parties. The propose to construct a 50,000 sq. ft. pre- engineered, metal building to accommodate new manufacturing equipment. The equipment is: 1) a strip mill, cut to length line and 2) a heavy gauge slitting line to handle heavy gauge steel material. The new manufacturing equipment will not replace existing equipment. The total estimated cost of the new construction is $1,000,000. The total estimated cost of the new manufacturing equipment is $3,050,000. The project will create 13 new full time jobs in the first year with an annual payroll of $282,000 and will maintain their existing employment of 346 full time jobs. ff3 COMMISSION ACCEPTED RESOLUTION NO. 1077 FOR FILING AND SET 10:00 A.M. JULY 24, 1992 AS THE TIME OF PUBLIC HEARING ON RESOLUTION NO. 1077 South Bend Redevelopment Commission egular Meeting - July 10, 1992 lqbw 6. NEW BUSINESS (Cont.) j. continued... The property is properly zoned for the proposed use. The property is not located in a tax abatement impact area, but is located in a tax incremental financing allocation area, the Rum Village Industrial Park. The petitioner qualifies for 10 years of real property tax abatement and 5 years of personal property tax abatement under the tax abatement ordinance. Without abatement the real property taxes on the project are estimated to be $471,000. With abatement, taxes are estimated to be $238,000. Therefore the total cost of the real property abatement over the ten year period would be approximately $233,000. ow Without abatement the personal property taxes on the project are estimated to be $279,000. With abatement the taxes received would be approximately $50,000. Therefore the cost of the personal property abatement over the five year period would be approximately $229,000. Mr. Lerman stated that this is an opportunity to take a position in a growing area of the steel industry. The Chicago and Detroit area competition has not gotten into this area yet. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1078 approving an application for real property tax deduction for property located at 2722 Tucker Drive in the Rum Village Industrial Park. (Steel Warehouse Co., Inc.) -7- COMMISSION APPROVED RESOLUTION NO. 1078 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2722 TUCKER DRIVE IN THE RUM VILLAGE INDUSTRIAL PARK (STEEL WAREHOUSE CO., INC.) South Bend Redevelopment Commission %,)Regular Meeting - July 10, 1992 6. NEW BUSINESS (Cont.) k. Commission approval requested for Resolution No. 1079 approving an application for personal property tax deduction for property located at 2722 Tucker Drive in the Rum Village Industrial Park (Steel Warehouse Co., Inc.) Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1079 approving an application for personal property tax deduction for property located at 2722 Tucker Drive in the Rum Village Industrial Park (Steel Warehouse Co., Inc.) 1. Commission approval requested for Lease with Center City Associates for property located in the South Bend Central Development Area. (Senor Kelly's Parking Lot) Mr. Hunt noted that, consistent with our policy on parking lots, we are proposing a lease with CCA to manage the newly acquired Senor Kelly's lot. The lease is similar to our other leases with them. Ms. Hickey noted that CCA is very capable and has done a good job of managing our other parking lots. It is logical to turn this one over to them also. Mr. Wolf noted that CCA has been managing the lot for Senor Kelly's since January. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Lease with Center City Associates for property located in the South Bend Central Development Area. (Senor Kelly's Parking Lot) m. Commission approval requested for Resolution No. 1080 approving the Sub -lease of Real Property in the South Bend Central Development Area. (611 E. South Street) -8- COMMISSION APPROVED RESOLUTION NO. 1079 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2722 TUCKER DRIVE IN THE RUM VILLAGE INDUSTRIAL PARK (STEEL WAREHOUSE CO., INC.) COMMISSION APPROVED THE LEASE WITH CENTER CITY ASSOCIATES FOR PROPERTY LOCATED IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (SENOR KELLY'S PARKING LOT) i South Bend Redevelopment Commission Regular Meeting - July 10, 1992 6. NEW BUSINESS (Cont.) m. continued... Mr. Hunt noted that the Commission has previously entered into sub- leases for houses in Monroe Park which were purchased with the 1990 lease rental revenue bond. The properties are sub- leased to the Board of Public Works which then sub- leases them to the Housing Development Corporation to rehab and manage as rental properties. The properties at 611 E. South and 701 E. South are two more of those properties. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1080 approving the Sub -lease of Real Property in the South Bend Central Development Area. (611 E. South Street) n. Commission approval requested for Resolution No. 1081 approving the Sub -lease of Real Property in the South Bend Central Development Area. (701 E. South Street) Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1081 approving the Sub -lease of Real Property in the South Bend Central Development Area. (701 E. South Street) o. Commission approval requested for Certificate of Waiver for Ernest Jack and Mary E. Reed for property located at 403 N. Studebaker Street. Mr. Leverman explained the under the Rental Rehab Program 10$ of the Rental Rehab Loan is forgiven each year if the conditions of the program are met. This is the forgiveness of $691.50 for each of two years as of May 28 1991 and May 28, 1992. -9- COMMISSION APPROVED RESOLUTION NO. 1080 APPROVING THE SUB -LEASE OF REAL PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (611 E. SOUTH STREET) COMMISSION APPROVED RESOLUTION NO. 1081 APPROVING THE SUB -LEASE OF REAL PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (701 E. SOUTH STREET) South Bend Redevelopment Commission Regular Meeting - July 10, 1992 6. NEW BUSINESS (Cont.) o. continued... Mr. Hunt acknowledged for the record that Ernest Jack Reed is Assistant to Mayor Kernan . Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Certificate of Waiver for Ernest Jack and Mary E. Reed for property located at 403 N. Studebaker Street. p. Staff report on acquisition of property in the Studebaker Corridor Development Area. Mr. Pocius noted that we have received a counter offer for the Policemen's Federal Credit Union located at 815 S. Lafayette. Their counter offer is in the - amount of $220,000 plus the $23,915 that we offered for immovable fixtures in the property. The staff recommends accepting this counter offer. Mr. Pocius noted that the credit union intends to build a new building. Mr. Piasecki asked if it is possible for us to move the current building to a new location for reuse. Mr. Hunt responded that we would look into that possibility. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission accepted the counter offer of $220,000 from the Policemen's Federal Credit Union plus $23,915 for immovable fixtures for property located at 815 S. Lafayette. q. Commission authorization requested for oven air stand in the South Bend Central Development Area. Item 6.q. was dropped from the agenda. amen COMMISSION ACCEPTED THE COUNTER OFFER OF $220,000 FROM THE POLICEMEN'S FEDERAL CREDIT UNION PLUS $23,915 FOR IMMOVABLE FIXTURES FOR PROPERTY LOCATED AT 815 S. LAFAYETTE ITEM 6.Q. DROPPED FROM THE AGENDA South Bend Redevelopment Commission Regular Meeting - July 10, 1992 6. NEW BUSINESS (Cont.) r. Commission approval requested for Resolution No. 1082 approvingr an addendum to the lease dated as of June 1. 1988 between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority for certain land and a parking facility located thereon. Mr. Rompola explained that Resolution No. 1082 amends the rental amount paid under the lease between the Commission and the Authority for the St. Joseph /Wayne Parking Garage. The current rental amount is an even payment of $231,500 semi - annually. This resolution reduces the rental amount to payments ranging from $228,000 to $81,000. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution OW IL No. 1082 approving an addendum to the lease dated as of June 1, 1988 between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority for certain land and a parking facility located thereon. s. Commission approval requested for Resolution No. 1083 establishina certain funds and accounts in connection with the Lease dated as of June 1, 1988 and as amended by an Addendum thereto dated as of July 29, 1988, and as further amended by an Addendum to Lease between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority. Mr. Rompola explained that Resolution No. 1083 certifies the pledge resolution adopted in 1988 and reaffirms the accounts set up in 1988 and reaffirms that the revenues of the parking facility will flow into a maintenance account and then into a net revenue account from which lease rental payments will be made. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the -11- COMMISSION APPROVED RESOLUTION NO. 1082 APPROVING AN ADDENDUM TO THE LEASE DATED AS OF JUNE 1, 1988 BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE SOUTH BEND REDEVELOPMENT AUTHORITY FOR CERTAIN LAND AND A PARKING FACILITY LOCATED THEREON COMMISSION APPROVED RESOLUTION NO. 1083 ESTABLISHING CERTAIN ' r - South Bend Redevelopment Commission Regular Meeting - July 10, 1992 6. NEW BUSINESS (Cont.) s. continued... Commission approved Resolution No. 1083 establishing certain funds and accounts in connection with the Lease dated as of June 1, 1088 and as amended by an Addendum thereto dated as of July 29, 1988, and as further amended by an Addendum to Lease between the South Bend Redevelopment Commission and South Bend Redevelopment Authority. 7. PROGRESS REPORTS Mr. Hunt noted that the improvements the HDC is making in Monroe Park are looking very nice and making a big difference in the area. Mr. Donoho asked about progress on the South Bend Heritage project in West Washington. Mr. Hunt responded that we are getting closer. HRP Construction will soon be out of their building. They are building a new facility. We have a few more buildings to demolish and have to remove some debris before South Bend Heritage can begin construction. They should start construction on or about their scheduled construction date at the end of July. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for July 24, 1992 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Commission, Mr. Piasecki made a motion that the meeting be adjourned. Mr. Donoho seconded the motion and the meeting was adjourned at 11:00 a.m. Ij' N Paula N. Auburn, President -12- FUNDS AND ACCOUNTS IN CONNECTION WITH THE LEASE DATED AS OF JUNE 1, 1988, AND AS AMENDED BY AN ADDENDUM THERETO DATED AS OF JULY 29, 1988, AND AS FURTHER AMENDED BY AN ADDENDUM TO LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE SOUTH BEND REDEVELOPMENT AUTHORITY PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT g Ann If. Kolata, Director