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Home My WebLink AboutRM 08-21-92e r ' v SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 21, 1992 10:00 a.m. Presiding Officer: Ms. Paula N. Auburn President 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Redevelopment 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. 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. Don Porter Mr. Thom Howell Mr. Carter Wolf, Center City Associates, Mr. Kevin Butler, Attorney 2. APPROVAL OF MINUTES Upon a motion made by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the minutes of the Regular Meeting of Friday, August 7, 1992, were approved. 3. APPROVAL OF CLAIMS ADMIN 1992 Joseph Podell Company South Bend Drafting South Bend Tribune Tri County News Jerome E. Michaels Manpower Equipment Services South Bend Tribune COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, AUGUST 7, 1992 $ 2,000.00 100.00 39.01 36.48 1,500.00 351.12 35.39 280.09 TOTAL $ 4,342.09 -1- ,,South Bend Redevelopment Commission Regular Meeting - August 21, 1992 3. APPROVAL OF CLAIMS (Cont.) STUDEBAKER CORRIDOR BOND Abstract & Title Corporation Lang Feeney & Associates, Inc. St. Joseph Title Corporation Jimmy Ball Indiana Michigan Power Co. $ 85.00 350.00 225.00 5,900.00 12.39 TOTAL $ 6,572.39 GRAND TOTAL $ 10,914.48 Upon a motion made by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission formally approved the claims submitted Friday, August 21, 1992. Mrs. Kolata asked permission to add two items to the agenda: item 6.k and item 6.1. There were no objections and the items were added. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS a. Public Hearing on Resolution No. 1085 appropriating money from the South Bend Central Allocation Area Special Fund to the Parking Garage Principal and Interest Account of the Redevelopment District Bond Fund. Mrs. Kolata explained that the payment on the bonds for the St. Joseph /Wayne Street Parking Garage is intended to be made from tax increment, with general obligation back -up. There needs to be a certain amount of money in the Principal and Interest Account by August 1 of each year or the Commission is obligated to levy a tax to make up the difference. There is enough increment to make the -2- COMMISSION FORMALLY APPROVED CLAIMS SUBMITTED FRIDAY, AUGUST 21, 1992 FOR PAYMENT THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS A �`N. South Bend Redevelopment Commission Regular Meeting - August 21, 1992 6. NEW BUSINESS (Cont.) a. continued... payment this year. Resolution No. 1085 allocates $453,010.39 from TIF funds so that it is not necessary to levy a tax. Following approval by the Commission, we send notice of the appropriation to the State Tax Board which has 15 days to disapprove, after which the money is transferred. Mrs. Kolata asked that the affidavits from the South Bend Tribune and the Tri- County News, proving publication of the Notice of Public Hearing on August 7, 1992, be entered into the record. There was no objection and the items were so entered. Ms. Auburn opened the Public Hearing for anyone who wished to speak. There was no one who wished to speak. Ms. Auburn closed the Public Hearing for whatever action the Commission wished to take. b. Commission approval requested for Resolution No. 1085. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1085 appropriating money from the South Bend Central Allocation Area Special Fund to the Parking Garage Principal and Interest Account of the Redevelopment District Bond Fund. c. Public Hearing on Resolution No. 1086 appropriating money from the South Bend Central Allocation Area Special Fund to the South Bend Central Development Area Public Improvement Project Principal and Interest Account of the Redevelopment District Bond Fund. Mrs. Kolata explained that this resolution allocates $239,500.00 from TIF funds to the Principal and Interest Account for payment of the South Bend -3- COMMISSION APPROVED RESOLUTION NO. 1085 APPROPRIATING MONEY FROM THE SOUTH BEND CENTRAL ALLOCATION AREA SPECIAL FUND TO THE PARKING GARAGE PRINCIPAL AND INTEREST ACCOUNT OF THE REDEVELOPMENT DISTRICT BOND FUND South Bend Redevelopment Commission Regular Meeting - August 21, 1992 6. NEW BUSINESS (Cont.) c. continued... Central Development Area Public Improvement Project bond. This 1990 bond was used to fund various projects in the Downtown, East Bank and Monroe Park and we have always intended to use TIF for the annual lease payments. It is similar to the St. Joseph /Wayne Garage financing where the Commission is obligated to levy a tax if there is not enough money in the fund. With this appropriation, a tax levy will not be necessary. Mrs. Kolata asked that the affidavits from the South Bend Tribune and the Tri- County News, proving publication of the Notice of Public Hearing on August 7, 1992, be entered into the record. There was no objection and the items were so entered. Ms. Auburn opened the Public Hearing for anyone who wished to speak. There was no one who wished to speak. Ms. Auburn closed the Public Hearing for whatever action the Commission wished to take. d. Commission approval requested for Resolution No. 1086. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1086 appropriating money from the South Bend Central Allocation Area Special Fund to the South Bend Central Development Area Public Improvement Project Principal and Interest Account of the Redevelopment District Bond Fund. e. Commission anvroval requested for Resolution No. 1091 approving an application for versonal vroverty tax deduction for property located at 3300 N. Kenmore Drive. (Spin -Cast Plastics, Inc.) Mr. Beitzinger noted that Spin -Cast was approved for a 10 year real property -4- COMMISSION APPROVED RESOLUTION NO. 1086 APPROPRIATING MONEY FROM THE SOUTH BEND CENTRAL ALLOCATION AREA SPECIAL FUND TO THE SOUTH BEND CENTRAL DEVELOPMENT AREA PUBLIC IMPROVEMENT PROJECT PRINCIPAL AND INTEREST ACCOUNT OF THE REDEVELOPMENT DISTRICT BOND FUND South Bend Redevelopment Commission Regular Meeting - August 21, 1992 6. NEW BUSINESS (Cont.) e. continued... abatement on May 22, 1992. They are now requesting tax abatement for personal property related to their building expansion. He read the staff report on the project. The petitioner is involved in the manufacturing, sales, and shipping of rotationally molded plastic products. Spin Cast proposes to purchase one (1) new rotational molding machine with auxiliary service equipment at an estimated cost of $450,000. This machine will enable Spin -Cast to manufacture larger products than they currently can handle. The machine and its associated support equipment will be utilized in the new 36,250 square foot addition for which a real property tax abatement was granted last May. The project will create five (5) new permanent full -time jobs in the first year, representing an annual payroll of $80,000 and will maintain sixty -six (66) existing permanent full -time jobs with an annual payroll of $1,169,000. 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 by the South Bend Common Council. It is, however, located in a tax incremental financing allocation area. The petitioner qualifies for 5 years of personal property tax abatement under the Tax Abatement Ordinance. Without abatement, the taxes on the project are estimated to be $41,054 over the five year period. With abatement, the taxes are estimated to be $7,280. Therefore, the cost of the abatement is approximately $33,774. -5- . South Bend Redevelopment Commission Regular Meeting - August 21, 1992 6. NEW BUSINESS (Cont.) e. continued... Upon a motion by Mr. Piasecki, seconded COMMISSION APPROVED RESOLUTION by Mr. Donoho and unanimously carried, NO. 1091 APPROVING AN APPLICATION the Commission approved Resolution FOR PERSONAL PROPERTY TAX No. 1091 approving an application for DEDUCTION FOR PROPERTY LOCATED AT personal property tax deduction for 3300 N. KENMORE DRIVE IN THE property located at 3300 N. Kenmore Drive AIRPORT ECONOMIC DEVELOPMENT AREA in the Airport Economic Development Area. (Spin -Cast Plastics, Inc.) f. Commission approval requested for Resolution No. 1092 authorizing reimbursement to the City of South Bend for expenditures made within the South Bend Central Development Area. Mrs. Kolata explained that this resolution authorizes reimbursement to the City from tax increment in the South Bend Central Developmant Area for the professional services of Gerard Hilferty related to the College Football Hall of Fame. (Gerard Hilferty is designing the exhibits for the Hall of Fame.) The total amount of the reimbursement is $19,784.12. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1092 authorizing reimbursement to the City of South Bend for expenditures made within the South Bend Central Development Area. g. Commission approval reauested for Amendment to By -Laws of the South Bend Redevelopment Commission. Ms. Manier explained that it was necessary to update the Commission By -Laws. The substantive changes were: 1) to change the regular meeting dates to the 1st and 3rd Fridays of each month and 2) to comply with state law which now requires a majority vote of the Commission members (rather than a majority vote of members present) to approve an action. -6- COMMISSION APPROVED RESOLUTION NO. 1092 AUTHORIZING REIMBURSEMENT TO THE CITY OF SOUTH BEND FOR EXPENDITURES MADE WITHIN THE SOUTH BEND CENTRAL DEVELOPMENT AREA ;South Bend Redevelopment Commission Regular Meeting - August 21, 1992 6. NEW BUSINESS (Cont.) g. continued... Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Amendment to By -Laws of the South Bend Redevelopment Commission. h. Commission approval requested for proposal from Pitcock Desicrn Group for consulting services in the South Bend Central Development Area. Item 6.h. was tabled until the next Regular Meeting. i. Staff report on receipt of engineering proposals for the Studebaker Corridor Development Area. Mrs. Kolata reported that we sent proposals to several area firms to do engineering design work in the Studebaker Corridor. We received four proposals from: Bosh Design, The Troyer Group, Ken Herceg and Assoc., and Lawson- Fisher Assoc. Carl Littrell and K. C. Pocius are reviewing them and will report on the proposals at the next meeting. j. Commission approval reguested for Resolution No. 1093 commending James E. Cook for his dedication and attention to the City of South Bend. Item 6.j. was tabled. k. Commission approval requested to use the Morris Civic Plaza on August 28. 1992. Mrs. Kolata noted that Rick Peltz has asked to locate his hot dog stand on the plaza from 11:30 - 1:30 in conjunction with the WAOR concert on August 28, 1992. They are fully insured. The staff recommends approving the request. -7- COMMISSION APPROVED THE AMENDMENT TO BY -LAWS OF THE SOUTH BEND REDEVELOPMENT COMMISSION ITEM 6.H. WAS TABLED REPORT ON RECEIPT OF ENGINEERING PROPOSALS FOR THE STUDEBAKER CORRIDOR DEVELOPMENT AREA ITEM 6.J. WAS TABLED mo—,' South Bend Redevelopment Commission `Regular Meeting - August 21, 1992 6. NEW BUSINESS (Cont.) k. continued... Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the request from Rick's Hot Dog Stand to locate on the Morris Civic Plaza on August 28, 1992. 1. Commission avoroval requested for Resolution No. 1094 amending Resolution No. 1065 which amended Resolution No. 1054 regarding the issuance of Tax Increment Revenue Refunding Bonds. Mrs. Kolata noted that we intended to hold a bond sale on August 25 for the refunding of the 1985 and 1986 TIF bonds. However, our financial advisor has recommended that we postpone the sale for approximately one week. Although the bond interest rates are good, the proceeds must go to purchase state and local government securities and those interest rates are a little low. They are expected to come up shortly. We only have to give 24 hours notice to the bidders so the sale can be easily rescheduled. Resolution No. 1094 makes some language changes to the bond resolution, including some language that is required by AMBAC Insurance since the bonds qualify for bond insurance. The maturity schedule has also been changed to more closely reflect the interest rate we expect to pay. Mrs. Kolata noted that we are not buying bond insurance, but have qualified for it. It will be up to the bidders to decide if they want to pay for bond insurance. We expect to get bids with and without insurance. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1094 amending Resolution No. 1065 which amended Resolution No. 1054 regarding the issuance of Tax Increment -8- COMMISSION APPROVED THE REQUEST FROM RICK'S HOT DOG STAND TO LOCATE ON THE MORRIS CIVIC PLAZA ON AUGUST 28, 1992 COMMISSION APPROVED RESOLUTION NO. 1094 AMENDING RESOLUTION NO. 1065 WHICH AMENDED RESOLUTION NO. 1054 REGARDING THE ISSUANCE OF TAX INCREMENT REVENUE REFUNDING BONDS South Bend Redevelopment Commission Regular Meeting - August 21, 1992 6. NEW BUSINESS (Cont.) 1. continued... Revenue Refunding Bonds. 7. PROGRESS REPORTS Mrs. Kolata reported that the architect for the Blackthorn Golf Course conducted a tour of the site on August 19. It was an interesting tour and should be a very challenging course. Mrs. Kolata reported that closing on the Palais Royale bond is scheduled for August 26 and we will get title to the building the same day. 8. NEXT COMMISSION MEETING Im The next Regular Meeting of the Redevelopment Commission is scheduled for September 4, 1992, at 10:00 a.m. There being no further business to come before the Commission, Mr. Piasecki made a motion that the meeting be adjourned. Mr. Doncho seconded the motion and the meeting was adjourned at 10:39 a.m. Paula N. Auburn, President -9- PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT Ann E. Kolata, Director