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Home My WebLink AboutRM 10-16-92October 16, 1992 10:00 A.M. Presiding Officer 1. ROLL CALL SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING Ms. Paula N. Auburn President 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 Doncho, Secretary Mr. Philip J. Faccenda, Assistant Secretary Ms. Charlotte Huddleston Ms. Jenny Pitts Manier Mr. Jon Hunt, Director, Economic Development Mrs. Cheryl Phipps, Office Manager Mr. K. C. Pocius, Economic Dev. Specialist Ms. Hedy Robinson, Economic Dev. Specialist Mr. Don Inks, Director, Business Assistance Mr. Ted Leverman, Assistant Director Mr. Thom Howell, U -93 Mr. Carter Wolf, Center City Associates Mr. Robert Toothaker, Real Estate Management Mr. Patrick McMahon, Project Future Ms. Eugenia Schwartz, Nickle & Piasecki Mr. George Herendeen, Policemen's Fed. C. U. Mr. Bippin Doshi, Schafer Gear Works Mr. Jim Cronk Mr. James Cierzniak Ms. Suzy Cierzniak Mr. Jim Larkin, Environmental Health Labs Mr. Barry Mangus, Environmental Health Labs Ms. Auburn announced that the Executive Session held prior to the meeting would be continued following adjournment of the Regular Meeting. Ms. Auburn requested three changes to the Commission agenda: 1) that item 6.0. be moved to follow 6.b.; 2) that item 6.n. be tabled until November 6; 3) that the items 6.c. and 6.d. be delayed until after the remonstrance hearing of the State Tax Board. There were no objections and the agenda was changed. Mr. Hunt noted that we will follow all of the public notice requirements for holding a public hearing when the public hearing on the College Football Hall of Fame appropriation is rescheduled. -1- -,",",,South Bend Redevelopment Commission Regular Meeting - October 16, 1992 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, October 2, 1992, were approved. 3. APPROVAL OF CLAIMS ADMIN 1992 4. Federal Express Tri- County News United Parcel Service South Bend Tribune Catering By Billie, Inc. General Fund Thomas Eddington Equipment Services STUDEBAKER CORRIDOR BOND Warner Brothers Cole Associates, Inc. E.I.S. Environmental Engineers, Inc. St. Joseph Circuit Court Asbestos Services St. Joseph Title Corporation UDAG Marketing Assistance TOTAL TOTAL TOTAL GRAND TOTAL Upon a motion made by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission formally approved the claims submitted October 16, 1992 for payment. There were no Communications. -2- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, OCTOBER 2, 1992 $ 13.00 92.87 9.00 55.66 97.10 685.78 27.02 33.58 $ 1,014.01 $ 25,267.50 1,294.00 8,823.90 93,000.00 24,337.00 150.00 $ 152,872.40 $ 525.00 $ 525.00 $ 154,411.41 COMMISSION FORMALLY APPROVED THE CLAIMS SUBMITTED OCTOBER 16, 1992 FOR PAYMENT THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Regular Meeting - October 16, 1992 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS THERE WAS NO OLD BUSINESS a. Public Hearing on Resolution No. 1099 amending the Studebaker Corridor Development Plan. Mr. Hunt asked that the following items be entered into the public record: 1) an original of the Notice of Public Hearing on Amendment to the Studebaker Corridor Development Area; 2) An Affidavit of Carol Smith, Classified Manager of the South Bend Tribune, that Notice of Public Hearing was published in that daily newspaper on October 2, 1992; 3) An Affidavit of Lisa Andrysiak, classified manager of the Tri- County News, that Notice of Public Hearing was published in that daily newspaper on October 2, 1992; 4) Property owners listed on Resolution No. 1099 were sent a copy of the Notice of Public Hearing on October 2, 1992; 5) A list of neighborhood associations who previously registered with the Redevelopment Commission concerning the Studebaker Corridor Development Area. These neighborhood associations were sent a copy of the Notice of Hearing on October 2, 1992; 6) A copy of Resolution No. 1099 which is the subject of the Public Hearing; 7) As of 10:00 a.m, on October 16, 1992, 0 written remonstrances were received. There were no objections and the items were entered into the record. Mr. Pocius explained that Resolution No. 1099 amends the Studebaker Corridor Development Plan by adding Parcel 14 -3A to the Acquisition List. The parcel is near Broadway and Main Streets. It is 622 square feet of the northeast corner of property commonly known as 1402 -1404 S. Main. WC Y . South Bend Redevelopment Commission Regular Meeting - October 16, 1992 6. NEW BUSINESS (Cont.) a. continued... Ms. Auburn opened the Public Hearing for PUBLIC HEARING ON RESOLUTION NO. anyone who wished to be heard. There was 1099 no one who wished to be heard. Ms. Auburn closed the Public Hearing for whatever action the Commission desired to take. Mr. Piasecki asked if the parcel was adjacent to others we own. Mr. Pocius responded that it is. It completes the square of Parcel 14 -3 which we own. The Commission already has possession of 1402 -1404 S. Main. Parcel 14 -3A was not included in our original purchase offer. b. Commission approval requested for Resolution No. 1099. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1099 amending the Studebaker Corridor Development Plan. o. Commission approval requested for Resolution No. 1109 related to acquisition of property in the Studebaker Corridor by eminent domain. Mr. Hunt noted that Resolution No. 1109 sets the Fair Market Value of Parcel 14 -3A at $170, authorizes the staff to send a purchase offer for the property and authorizes the use of eminent domain to acquire the property if a purchase agreement cannot be reached within 30 days. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1109 related to acquisition of property in the Studebaker Corridor by eminent domain. e. Receipt of bids for Parcel NOW. 20 6 & 4 in the Studebaker Corridor Development Area. -4- COMMISSION APPROVED RESOLUTION NO. 1099 AMENDING THE STUDEBAKER CORRIDOR DEVELOPMENT PLAN COMMISSION APPROVED RESOLUTION NO. 1109 RELATED TO ACQUISITION OF PROPERTY IN THE STUDEBAKER CORRIDOR BY EMINENT DOMAIN .,South Bend Redevelopment Commission egular Meeting - October 16, 1992 6. NEW BUSINESS (Cont.) e. continued... Mr. Hunt noted that we received two bids by the 10:00 a.m. deadline: a $7,600 bid from Schafer Gear for Parcel 6 and a $23,100 bid from Policemen's Federal Credit Union for Parcel 20. Mr. Pocius noted that Parcel 20 is approximately 33,200 square feet, located on the northeast corner of Stull and Main Streets. Parcel 6 is approximately 13,000 square feet, is located near the southeast corner of Tutt and Main streets, commonly known as 802 S. Main. Ms. Manier reviewed both bid packets and found them complete. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission accepted the bid from Policemen's Federal Credit Union for Parcel 20 and the bid from Schafer Gear for Parcel 6 and referred the bids to the staff for review and comment. Mr. Herendeen, representing Policemen's Federal Credit Union, asked the Commission to consider the bid for Parcel 20 prior to the next Regular Meeting of the Commission. Policemen's Federal Credit Union needs to begin construction promptly in order to complete construction by June 1993. He asked if the Commission could accept the bid today because the staff is very familiar with what the bid contains. The acceptance could be subject to acceptable review by the staff. Mr. Doshi noted that they were not in any hurry for authorization to proceed. They will not be starting construction before spring. Ms. Auburn indicated that the Commission is sympathetic to the credit union's need for a timely response and will try to hold a Special Meeting to consider this -5- COMMISSION ACCEPTED THE BID FROM POLICEMEN'S FEDERAL CREDIT UNION FOR PARCEL 20 AND THE BID FROM SCHAFER GEAR FOR PARCEL 6 AND REFERRED THE BIDS TO THE STAFF FOR REVIEW AND COMMENT South Bend Redevelopment Commission Regular Meeting - October 16, 1992 6. NEW BUSINESS (Cont.) e. continued... proposal prior to its next regular meeting on November 6. f. Commission approval requested for Certificate of Waiver for Leonard E. Leffel for property located at 730 N. Cleveland Avenue. Mr. Leverman noted that the Certificates of Waiver forgive 10W of the Rental Rehab Loan each year that the property meets the loan requirements. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Certificate of Waiver in the amount of $500 for the year ending January 28, 1992, for Leonard E. Leffel for property located at 730 N. Cleveland Avenue. g. Commission approval requested for Certificate of Waiver for Louis M. and Mary H. Seacro for property located at 712 Lindsey Street. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Certificate of Waiver for $406.70 for the year ending August 30, 1992, for Louis M. and Mary Seago for property located at 712 Lindsey Street. h. Commission approval requested for Resolution No. 1106 approvincr an application for personal property tax deduction for property located at 4300 Ouality Drive in the Airport Economic Development Area.(Accuride Indiana, Inc.) Mr. Inks gave the staff report on the project. The petitioner, Accuride Indiana, Inc., is a manufacturer of precision ball bearing drawer slides for the contract furniture industry. The project calls for construction of a -6- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN THE AMOUNT OF $500 FOR THE YEAR ENDING JANUARY 28, 1992, FOR LEONARD E. LEFFEL FOR PROPERTY LOCATED AT 730 N. CLEVELAND AVENUE COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR $406.70 FOR THE YEAR ENDING AUGUST 30, 1992, FOR LOUIS M. AND MARY SEAGO FOR PROPERTY LOCATED AT 712 LINDSEY STREET South Bend Redevelopment Commission Regular Meeting - October 16, 1992 6. NEW BUSINESS (Cont.) h. continued... 168,000 square foot facility on 22.5 acres of land located at 4300 Quality Drive. This facility will provide additional U.S. capacity, close to major markets. The total cost of new construction is $4,500,000. The total estimated cost of new equipment is $1,500,000. The project will create two hundred fifty (250) new permanent full -time jobs in the first year, representing an annual payroll of $6,000,000. 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. The property is located in the Airport Economic Development Area and in a Tax Incremental Financing Allocation Area. The project qualifies for five years of personal property tax abatement and 10 years of real property tax abatement under the Tax Abatement Ordinance. The petitioner has not applied for a previous tax abatement. Without abatement, the personal property taxes on this project are estimated to be approximately $136,843. With abatement the taxes are estimated to be $24,265. Therefore the cost of the personal property tax abatement is expected to be approximately $112,578 over the five year period. Without abatement, the real property taxes on this project are estimated to be approximately $2,116,125 over the ten year period. With abatement, the taxes are estimated to be $1,068,643. Therefore the cost of the real property tax abatement is expected to be approximately $1,047,482 over the ten .. .; ^ year period. Mr. McMahon noted that Accuride expects to break ground this fall and hopes to -7- South Bend Redevelopment Commission Regular Meeting - October 16, 1992 6. NEW BUSINESS (Cont.) h. continued... have the building completed next spring, opening operations late spring or early summer. Mr. McMahon noted that we are particularly pleased to have an operation like Accuride coming to South Bend. They will provide good, manufacturing jobs to the area. It is a strong company, a worldwide operation, larger than any two of their competitors. This is not a relocation, but an expansion of their operation. Mr. McMahon noted that Accuride was particularly impressed with the plans for the Airport 2010 area. That was what won them for South Bend over our other competitors. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1106 approving an application for personal property tax deduction for property located at 4300 Quality Drive in the Airport Economic Development Area. (Accuride Indiana, Inc.) i. Commission approval requested for Resolution No. 1107 approving an application for real property tax deduction for property located at 4300 Oualitv Drive in the Airport Economic Development Area. (Accuride Indiana, Inc.) Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1107 approving an application for real property tax deduction for property located at 4300 Quality Drive in the Airport Economic Development Area. rA (Accuride Indiana, Inc.) -8- COMMISSION APPROVED RESOLUTION NO. 1106 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 4300 QUALITY DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (ACCURIDE INDIANA, INC.) COMMISSION APPROVED RESOLUTION NO. 1107 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 4300 QUALITY DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (ACCURIDE INDIANA, INC.) South Bend Redevelopment Commission Regular Meeting - October 16, 1992 6. NEW BUSINESS (Cont.) j. Commission approval requested for Resolution No. 1108 approving an application for real property tax deduction for property located at 110 S Hill Street in the South Bend Central Development Area. (Environmental Health Laboratories) Mr. Inks gave the staff report on the project. The petitioner, Environmental Health Laboratories, Inc., is a leading provider of laboratory analysis for the public water supply industry. MAS Technology Corporation currently operates its laboratories in a 5500 square foot building at 110 S. Hill Street. They propose to expand that building with an 11,000 square foot bi -level addition on three presently owned lots adjacent to the existing facility. The expanded portion will house much needed additional °. laboratory and office space. They will also acquire an adjacent property at 616 E. Washington Street to increase the available on -site parking. The project will create twenty (20) new permanent full -time jobs in the first year, representing an annual payroll of $475,000 and will maintain thirty three (33) existing permanent full -time jobs and five (5) part time positions with an annual payroll of $900,000. The property is properly zoned for the proposed use. The property is located in an area presently designated as an Economic Development Target Area, is in a Tax Abatement Impact Area, and is in a Tax Incremental Financing Allocation Area. The project qualifies for 6 years of real property tax abatement under the Tax Abatement Ordinance. Environmental Health Laboratories has not applied for a previous tax abatement. Without abatement the taxes on the project are estimated to be $169,729. -9- South Bend Redevelopment Commission egular Meeting - October 16, 1992 6. NEW BUSINESS (Cont.) j. continued... With abatement, the taxes are estimated to be $70,155. Therefore, the cost of the abatement is approximately $99,574 over the six year period. Mr. Mangus, Environmental Health Labs, noted that the company began five years ago with three employees. They now have 38 employees. The principles have invested one million dollars in equipment. Although they are a small laboratory, they are very sophisticated technologically. They do work nation wide, bringing money into this area. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1108 approving an application for ,zIN, real property tax deduction for property located at 110 S. Hill Street in the South Bend Central Development Area. k. Commission approval requested for Lease with Policemen's Federal Credit Union. Ms. Manier explained that we closed on the Policemen's Federal Credit Union building on October 15. They are not ready to vacate the site, so we are entering into a lease agreement, allowing them to remain in the current location until June 30, 1993. The rental rate is minimal, but they are required to maintain the site. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Lease with Policemen's Federal Credit Union. 1. Commission approval requested for Contract with Cole Associates for environmental services in the Studebaker Corridor Development Area. 6V vbo� Mr. Pocius explained that the Cole contract is for industrial hygiene -10- COMMISSION APPROVED RESOLUTION NO. 1108 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 110 S. HILL STREET IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA COMMISSION APPROVED THE LEASE WITH POLICEMEN'S FEDERAL CREDIT UNION South Bend Redevelopment Commission Regular Meeting - October 16, 1992 6. NEW BUSINESS (Cont.) 1. continued... services related to asbestos abatement on the former Southern Hotel and the former Borden /Rhodes Ice Building. They will prepare plans and specifications for the removal of the asbestos, provide an engineers estimate for the probable cost, assist the Board of Public Works in the bidding process, review the contractor's methodology, and will monitor the integrity of the air during the asbestos removal itself. Mr. Pocius noted that, although the buildings themselves are small, they contain large amounts of asbestos. Upon a motion by Mr. Donoho, seconded by COMMISSION APPROVED THE CONTRACT Mr. Piasecki and unanimously carried, the WITH COLE ASSOCIATES FOR Commission approved the Contract with ENVIRONMENTAL SERVICES IN THE Cole Associates for $16,430 for STUDEBAKER CORRIDOR DEVELOPMENT environmental services in the Studebaker AREA Corridor Development Area. M. Commission approval requested for Contract with Real Estate Management Corporation. Ms. Manier explained that we acquired the Palais Royale building six weeks ago. Real Estate Management Corporation managed the property for the former owners for some time and is knowledgable about the building. We wish to use them as a property management agent for the building. They will maintain the entire building and will be responsible for leasing activities concerning the retail space on the first floor. The contract is for a term of two years and calls for a variety of monthly management fees based on percentage. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Contract with Real Estate Management Corporation for property management of the Palais Royale building. -11- COMMISSION APPROVED THE CONTRACT WITH REAL ESTATE MANAGEMENT CORPORATION FOR PROPERTY MANAGEMENT OF THE PALAIS ROYALE BUILDING • i South Bend Redevelopment Commission Regular Meeting - October 16, 1992 7. PROGRESS REPORTS Mr. Auburn reported that the ground breaking PROGRESS REPORTS for the Blackthorn Golf Course was very nice. Mr. Hunt reported that we have started the process of meeting with larger property owners in the Airport 2010 area for complementary land use development, primarily light industrial and warehouse distribution. Mr. Hunt reported that he met with Sam Wolfe of from the Toll Road and we will be starting next year on the expanded Exit 72 interchange. 8. NEXT COMMISSION MEETING The next Regular Commission Meeting is NEXT COMMISSION MEETING scheduled for November 6, 1992 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come ADJOURNMENT before the Commission, Mr. Piasecki made a motion that the meeting be adjourned. Mr. Donoho seconded the motion and the meeting was adjourned at 10:45 a.m. Ljcc- N - - -- Z/�� Paula N. Auburn, President Ann E. Kolata, Director -12-