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HomeMy WebLinkAboutRM 10-02-92IN SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING October 2, 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. Michael Donoho, Secretary Ms. Charlotte Huddleston Mr. Philip J. Faccenda, Assistant Secretary Ms. Jenny Pitts Manier Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Mr. K. C. Pocius, Economic Dev. Specialist Mr. Michael Beitzinger, Economic Dev. Specialist Mr. Ted Leverman, Assistant Director Mr. Don Porter, South Bend Tribune Mr. Thom Howell, U -93 Mr. Joe Amaral, Attorney Mr. Randy Rompola, Baker & Daniels 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 COMMISSION APPROVED THE MINUTES by Mr. Donoho and unanimously carried, the OF THE REGULAR MEETING OF FRIDAY, minutes of the Regular Meeting of Friday, SEPTEMBER 18, 1992 September 18, 1992, were approved. 3. APPROVAL OF CLAIMS ADMIN 1992 Federal Express $ 49.00 Petty Cash 118.99 Savoy Suites Georgetown 507.00 Travelmore 390.00 -1- South Bend Redevelopment Commission Regular Meeting - October 2, 1992 3. APPROVAL OF CLAIMS (Cont.) ADMIN 1992 American Planning Association 50.00 International Symposium on Design 250.00 National Assn. of Appraisers & Mortgage Underwriters 195.00 Country Gardens 46.00 Indiana Chapter NAHRO 35.00 Burkhart Advertising 562.00 Business Systems 99.21 Central Stores 18.08 South Bend Tribune 24.61 Tri- County News 25.03 Hedy Robinson 72.86 TOTAL ADMIN 1992 $ 2442.78 STUDEBAKER CORRIDOR BOND Indiana Michigan Power $ 6.00 Petty Cash 20.00 Jimmy Ball 20,000.00 TOTAL STUDEBAKER CORRIDOR BOND $ 20,026.00 GRAND TOTAL $ 22,468.78 Upon a motion made by Mr. Donoho, seconded by Ms. Huddleston and unanimously carried, the Commission formally approved the claims submitted October 2, 1992. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS a. Filing of Resolution No. 1099 amendin the Studebaker Corridor Develonment Plan and setting 10:00 a.m. on October 16, 1992 as the time of Public Hearing on Resolution No. 1099. -2- COMMISSION APPROVED THE CLAIMS SUBMITTED OCTOBER 2, 1992 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - October 2, 1992 6. NEW BUSINESS (Cont.) a. continued... Mrs. Kolata explained that Resolution No. 1099 adds Parcel 14 -3A to the acquisition list. The parcel is 622 square feet that we did not realize was a separate key number from Parcel 14 -3 which we have already acquired. Upon a motion by Mr. Donoho, seconded by Ms. Huddleston and unanimously carried, the Commission accepted Resolution No. 1099 for filing and set 10:00 a.m., October 16, 1992 as the time for Public Hearing on Resolution No. 1099. b. Commission approval requested for Resolution No. 1100 approving a modification to and reducing the annual rentals on the Lease for the Blackthorn Golf Course Project and approving the execution of an Addendum to the Lease. Mrs. Kolata noted that as a result of the bond sale held for the Blackthorn Golf Course project held on September 28, the lease payment amounts for the bond have been reduced. Resolution No. 1100 reduces the payment amounts and also increases the amount which will be set aside with each payment for paying the bond trustee. The lease payments range from $180,500 to $345,000 semi - annually. Upon a motion by Mr. Piasecki, seconded by Ms. Huddleston and unanimously carried, the Commission approved Resolution No. 1100 approving a modification to and reducing the annual rentals on the Lease for the Blackthorn Golf Course Project and approving the execution of an Addendum to the Lease. c. Commission approval reauested for Resolution No. 1101 approving an Agreement among the South Bend Redevelopment Authority, the South Bend Redevelopment Commission, and the St. Joseph County Airport Authority for the -3- COMMISSION ACCEPTED RESOLUTION NO. 1099 FOR FILING AND SET 10:00 A.M., OCTOBER 16, 1992 AS THE TIME FOR PUBLIC HEARING ON RESOLUTION NO. 1099 COMMISSION APPROVED RESOLUTION NO. 1100 APPROVING A MODIFICATION TO AND REDUCING THE ANNUAL RENTALS ON THE LEASE FOR THE BLACKTHORN GOLF COURSE PROJECT AND APPROVING THE EXECUTION OF AN ADDENDUM TO THE LEASE South Bend Redevelopment Commission Regular Meeting - October 2, 1992 6. NEW BUSINESS (Cont.) c. continued... operation and management of Blackthorn Golf Course. Ms. Manier explained that Resolution No. 1101 effectuates an agreement between the Commission, the Authority, and the Airport Authority for the acquisition of 189 acres of airport land by the Redevelopment Authority for construction of a portion of the Blackthorn Golf Course. In exchange for conveying the land to the Redevelopment Authority, the Airport Authority will be included in the operation and management of the golf course. All three parties will participate in a joint management committee and have a stake in the successful development of the course. The Airport Authority will be considering this agreement on October 8. Ms. Kolata noted that Ms. Manier has done a lot of work in a very short period of time to put this document together. We really appreciate her effort. Upon a motion by Ms. Huddleston, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1101 approving an Agreement among the South Bend Redevelopment Authority, the South Bend Redevelopment Commission, and the St. Joseph County Airport Authority for the operation and management of Blackthorn Golf Course. d. Commission approval requested for Resolution No. 1101 approving an application for real property tax deduction for property located at 3601 McGill Street in the Airport Economic Development Area. (Precision Millwork & Plastics) Mr. Beitzinger gave the staff report on the project. Precision Millwork is a manufacturer of industrial and retail 1XIC COMMISSION APPROVED RESOLUTION NO. 1101 APPROVING AN AGREEMENT AMONG THE SOUTH BEND REDEVELOPMENT AUTHORITY, THE SOUTH BEND REDEVELOPMENT COMMISSION, AND THE ST. JOSEPH COUNTY AIRPORT AUTHORITY FOR THE OPERATION AND MANAGEMENT OF BLACKTHORN GOLF COURSE South Bend Redevelopment Commission Regular Meeting - October 2, 1992 6. NEW BUSINESS (Cont.) d. continued... wood and plastic products, including refrigeration and retail store fixtures. They propose to construct a 16,000 square foot steel, masonry and frame building on 2.7 acres of land in the Airport Industrial Park. The facility will be used to manufacture custom wood and plastic parts for industrial and retail customers, and will also be used for product storage and general offices of the corporation. The total projected project cost for the new building is $320,000. The project will create five new permanent full -time jobs in the first year, representing an annual payroll of $76,200 and will maintain eleven existing permanent full -time jobs with an annual payroll of $163,800. Precision Millwork has not applied for any previous tax abatement. The property is properly zoned for the proposed use. The property is not located in an area presently designated as an Economic Development Target Area, but is located in a Tax Incremental Financing Allocation Area. The project qualifies for three years of real property tax abatement under the Tax Abatement Ordinance. Without abatement the project would generate approximately $45,144 in taxes over the three year period. With abatement, the taxes will be approximately, $15,198. Therefore the cost of the abatement will be approximately $29,946 over the three year period. Mr. Amaral noted that Precision Millwork was founded in South Bend by Brian Montgomery who is from South Bend. Mrs. Kolata noted that the design of the building has been approved by the Design -5- South Bend Redevelopment Commission Regular Meeting - October 2, 1992 6. NEW BUSINESS (Cont.) d. continued... Review Committee. It is a very nice looking building. Upon a motion by Mr. Piasecki, seconded by Ms. Huddleston and unanimously carried, the Commission approved Resolution No. 1102 approving an application for real property tax deduction for property located at 3601 McGill in the Airport Economic Development Area. e. Commission approval requested for Resolution No. 1103 approving an application for personal property tax deduction for property located at 2930 Foundation Drive in the Airport Economic Development Area. (Eaton Corporation) Mr. Beitzinger gave the staff report on the project. Eaton Corporation is a forging plant that manufactures parts for use in the truck industry. The project calls for the relocation of one 1,600 ton and one 2,500 ton forge presses, two trim presses, two induction heaters and related controls from their Marion, Ohio facililty. Additionally, $440,000 of new equipment (including installation) will be brought in. Disassembly and shipping will add another $60,000 to the project cost, bringing the total value of equipment to $2,500,000. The completed project will almost double the current production capacity of the South Bend facility and will make it the primary source of forgings for the Eaton Transmission Division. The project will create thirty -nine new permanent full -time jobs in the first year, representing an annual payroll of $850,000 and will maintain fifty -six existing permanent full -time and existing part -time jobs with an annual payroll of $1,100,000. -6- COMMISSION APPROVED RESOLUTION NO. 1102 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3601 MCGILL IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - October 2, 1992 6. NEW BUSINESS (Cont.) e. continued... The petitioner has not applied for any previous tax abatement consideration. 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 project qualifies for five years of personal property tax abatement under the Tax Abatement Ordinance. Without abatement, the improvements would generate approximately $228,071 in new taxes. With abatement, the taxes will be approximately $40,441. Therefore, the cost of the abatement will be approximately $187,630. Mrs. Kolata noted that personal property taxes are not included in our tax increment, so the taxes to be paid will be available to the the other taxing juristictions. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1103 approving an application for personaly property tax deduction for property located at 2930 Foundation Drive in the Airport Economic Development Area. (Eaton Corporation) Mr. Donoho abstained. Ms. Auburn voted to make a majority vote. f. Commission approval requested for Subordination Agreement with Society Bank. Mr. Leverman explained that the property at 115 E. South Street was rehabilitated by Timothy D. Hancz who now desires to turn his construction financing into a mortgage. Society Bank requires that their mortgage be in first postion, so the Rental Rehab Loan will be in second -7- COMMISSION APPROVED RESOLUTION NO. 1103 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2930 FOUNDATION DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - October 2, 1992 6. NEW BUSINESS (Cont.) f. continued... position. This Subordination Agreement allows for that and provides for a maximum of $40,000 first mortgage. Upon a motion by Ms. Huddleston, seconded by Mr. Donoho and unanimously carried, the Commission approved the Subordination Agreement with Society Bank for property located at 115 E. South Street. g. Commission approval requested for Certificate of Waiver for Leo R. and Cleora Kelsch for property located at 617 N. Cushing in connection with the Rental Rehab Program. Mrs. Kolata noted that this Certificate of Waiver forgives $533.20 for each of two years ending August 15, 1991 and August 15, 1992. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver for Leo R. and Cleora Kelsch for property located at 617 N. Cushing in connection with the Rental Rehab Program, forgiving $533.20 for each of two years ending August 15, 1991 and August 15, 1992. h. Commission approval requested for Certificate of Waiver for James K., Penn D., and Scott A. Hughes for property located at 202 E. Bartlett in connection with the Rental Rehab Program. Mrs. Kolata noted that this Certificate of Waiver forgives $945.40 for each of three years ending July 24, 1990, 1991, and 1992. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver for James K., Penny D., and Scott A. Hughes for property located at -8- COMMISSION APPROVED THE SUBORDINATION AGREEMENT WITH SOCIETY BANK FOR PROPERTY LOCATED AT 115 E. SOUTH STREET COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR LEO R. AND CLEORA KELSCH FOR PROPERTY LOCATED AT 617 N. CUSHING IN CONNECTION WITH THE RENTAL REHAB PROGRAM, FORGIVING $533.20 FOR EACH OF TWO YEARS ENDING AUGUST 15, 1991 AND AUGUST 15, 1992 COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR JAMES K., PENNY D., AND SCOTT A. HUGHES FOR PROPERTY LOCATED AT 202 E. BARTLETT IN CONNECTION WITH THE South Bend Redevelopment Commission Regular Meeting - October 2, 1992 6. NEW BUSINESS (Cont.) h. continued... 202 E. Bartlett in connection with the Rental Rehab Program, forgiving $945.40 for each of three years ending July 24, 1990, 1991, and 1992. i. Commission approval requested for Certificate of Waiver for John Freidline for property located at 803 W. Washington in connection with the Rental Rehab Program Mrs. Kolata noted that this Certificate of Waiver forgives $4,450 for each of the years ending July 24, 1990, 1991, and 1992. Upon a motion by Ms. Huddleston, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver for John Freidline for property located at 803 W. Washington in connection with the Rental Rehab Program, forgiving $4,450 for each of the years ending July 24, 1990, 1991, and 1992. j. Staff report on proposals to purchase and remove structure at 1026 S. Lafayette Street in the Studebaker Corridor Development Area. Mr. Pocius explained that we asked for proposals to purchase and remove a metal pole building at 1026 S. Lafayette. We received two proposals. George Herendeen, on behalf of Ronald Staley, proposed to do the work for $1,500, and Elmber Booher Construction company proposed to buy and remove the building for $500. The staff recommends accepting the proposal of Ronald Staley, provided he can complete the removal promptly enough for our need. Upon a motion by Mr. Piasecki, seconded 6 by Mr. Donoho and unanimously carried, the Commission accepted the proposal in the amount of $1,500 from George Herendeen on behalf of Ron Staley to buy -9- RENTAL REHAB PROGRAM, FORGIVING $945.40 FOR EACH OF THREE YEARS ENDING JULY 24, 1990, 1991, AND 1992 COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR JOHN FREIDLINE FOR PROPERTY LOCATED AT 803 W. WASHINGTON IN CONNECTION WITH THE RENTAL REHAB PROGRAM, FORGIVING $4,450 FOR EACH OF THE YEARS ENDING JULY 24, 1990, 1991, AND 1992 COMMISSION ACCEPTED THE PROPOSAL IN THE AMOUNT OF $1,500 FROM GEORGE HERENDEEN ON BEHALF OF RON STALEY TO BUY AND REMOVE THE BUILDING AT 1026 S. LAFAYETTE South Bend Redevelopment Commission Regular Meeting - October 2, 1992 6. NEW BUSINESS (Cont.) j. continued... and remove the building at 1026 S. Lafayette. k. Commission approval reauested for Contract with The Troyer Group for engineering services related to the Studebaker Corridor Development Area. Mrs. Kolata noted that the Commission accepted the proposal from The Troyer Group for this work at its September 4 meeting. This is the contract for that work. They will begin immediately gathering data on the infrastructure in the Studebaker Corridor and will make recommendations regarding necessary improvements to the physical aspects and land use and will recommend a schedule for those improvements. They will charge by the hour, not to exceed $25,000. Upon a motion by Ms. Huddleston, seconded COMMISSION APPROVED THE CONTRACT by Mr. Piasecki and unanimously carried, WITH THE TROYER GROUP FOR the Commission approved the Contract with ENGINEERING SERVICES IN THE The Troyer Group for engineering services STUDEBAKER CORRIDOR DEVELOPMENT related to the Studebaker Corridor AREA Development Area. 1. Commission approval requested for Resolution No. 1104 approving the Fair Re -use Value of property in the Studebaker Corridor Development Area. Item 6.1. was tabled. M. Commission approval requested for Bid Specifications and Design Considerations for Parcels 1, 9, 11, 30 5 7 16 19 21, 23, 17, 18, 22, 26, 8 15 and 27/28 in the Studebaker Corridor Development Area. Item 6.m. was tabled. -10- ITEM 6.L. WAS TABLED ITEM 6.M. WAS TABLED South Bend Redevelopment Commission Regular Meeting - October 2, 1992 6. NEW BUSINESS (Cont.) n. Commission approval requested to publish Notice of Intended Sale of Property in the South Bend Central Development Area with publication dates to be October 9 and October 16, 1992 and receipt of bids to be at 10:oo a.m. on October 30, 1992 (Parcels 1, 9, 11, 30, 5, 7, 16, 19, 21, 23, 17, 18, 22, 26, 8, 15, and 27/28). Item 6.n. was tabled. o. Filing of Resolution No. 1105 appropriating the proceeds (including ivestment earnings thereon) of the City of South Bend Redevelopment District Tax Increment Revenue Bonds of 1992 to be applied to the cost of redevelopment in the South Bend Central Development Area, South Bend Allocation Area No. 1A, and setting 10:00 a.m.. October 16, 1992, as the time for Public Hearing on Resolution No. 1105. Mrs. Kolata noted that Resolution No. 1105 will appropriate the revenue from the bond issue to be used for the College Football Hall of Fame expenses. The amount of the bond issue is not to exceed $3,000,000. We expect to determine the actual bond size by the time of the Public Hearing on October 16. Upon a motion by Mr. Piasecki, seconded by Ms. Huddleston and unanimously carried, the Commission accepted Resolution No. 1105 for filing and set 10:00 a.m., October 16, 1992 as the time for Public Hearing on Resolution No. 1105. p. Commission approval requested for proposal from Municipal Consultants for consulting services related to the College Football Hall of Fame. Mrs. Kolata noted that Municipal Consultants is serving as the financial advisor on this bond issue. They will charge their hourly rate, not to exceed -11- ITEM 6.N. WAS TABLED COMMISSION ACCEPTED RESOLUTION NO. 1105 FOR FILING AND SET 10:00 A.M. ON OCTOBER 16, 1992 AS THE TIME OF PUBLIC HEARING ON RESOLUTION NO. 1105 South Bend Redevelopment Commission Regular Meeting - October 2, 1992 6. NEW BUSINESS (Cont.) p. continued... $10,000. The staff recommends accepting their proposal. Upon a motion by Ms. Huddleston, seconded COMMISSION ACCEPTED THE PROPOSAL by Mr. Donoho and unanimously carried, FROM MUNICIPAL CONSULTANTS FOR the Commission accepted the proposal from CONSULTING SERVICES RELATED TO Municipal Consultants for consulting THE COLLEGE FOOTBALL HALL OF FAME services related to the College Football Hall of Fame. q. Commission approval requested for proposal from Baker & Daniels to serve as Bond Counsel for the College Football Hall of Fame. Mrs. Kolata noted that Baker & Daniels will be serving as Bond Counsel for this bond issue. They will charge their hourly rate, not to exceed $15,000. The staff recommends accepting their proposal. They will provide services on an "at risk" basis, so that if the bond is not sold our only cost will be their out of pocket expenses. Upon a motion by Mr. Piasecki, seconded by Ms. Huddleston and unanimously carried, the Commission accepted the proposal of Baker & Daniels to serve as Bond Counsel for the College Football Hall of Fame. Ms. Auburn declared a conflict of interest and did not vote. Mrs. Kolata asked permission to add item 6.r. to the agend. There was no objection and the item was added. r. Commission approval requested for Commercial Sublease between Center City Associates and Hall of Fame Sport Shop. Mrs. Kolata explained that the Commission has leased the State Theater storefronts to Center City Associates and must approve all subleases. The term of this lease is August 1, 1992 through July 31, 1993. The rent is $385.00 per month. -12- COMMISSION ACCEPTED THE PROPOSAL FROM BAKER & DANIELS TO SERVE AS BOND COUNSEL FOR THE COLLEGE FOOTBALL HALL OF FAME South Bend Redevelopment Commission Regular Meeting - October 2, 1992 6. NEW BUSINESS (Cont.) r. continued... The staff recommends approving this lease. When this lease expires, any lease extension will come before the Commission again. Upon a motion by Ms. Huddleston, seconded COMMISSION APPROVED THE SUBLEASE by Mr. Donoho and unanimously carried, BETWEEN CENTER CITY ASSOCIATES the Commission approved the Sublease AND HALL OF FAME SPORT SHOP between Center City Associates and Hall of Fame Sport Shop. 7. PROGRESS REPORTS Mrs. Kolata reported that the bond sale for Blackthorn Golf Course was held on September 28 and received a very good interest rate. We expect to close on the bond on October 9. Mrs. Kolata reported that the Avanti Building is nearly, if not completly, demolished. Mrs. Kolata reported that there are three bid packets out for the land offered at the September 18 meeting. We expect three bids on October 16. Mrs. Kolata reported that the groundbreaking for Blackthorn Golf Course will be held at 9:00 a.m. on October 5. 8. NEXT COMMISSION MEETING 9 The next Regular Meeting of the Redevelopment Commission is scheduled for October 16, 1992 at 10:00 a.m. There being no further business to come before the Commission, Mr. Donoho made a motion that the meeting be adjourned. Ms. Huddleston seconded the motion and the meeting was adjourned at 10:50 a.m. Paula N. Auburn, President -13- PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT Ann E. Kolata, Director