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HomeMy WebLinkAboutRM 11-06-92SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING November 6, 1992 10:00 A.M. Presiding Officer: Mr. Roman Piasecki Vice - President 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Redevelopment Staff: Bureau of Housing Staff: News Media: Others: 2. APPROVAL OF MINUTES 1308 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Mr. Roman J. Piasecki, Vice - President Mr. Philip J. Faccenda, Assistant Secretary Ms. Charlotte Huddleston Ms. Paula N. Auburn, President Mr. Michael Donoho, 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. James Riggs, Economic Dev. Specialist Ms. Hedy Robinson, Economic Dev. Specialist Ms. Mary Richmond, Assistant Director Mr. Don Porter, South Bend Tribune Mr. Carter Wolf, Center City Associates Mr. Stan Blenke, Schafer Gear Mr. Bippin Doshi, Schafer Gear Ms. Sondra Hartz, Mack Tool & Engineering Mr. Mel Hartz, Mack Tool & Engineering Upon a motion made by Mr. Faccenda, seconded by Ms. Huddleston and unanimously carried, the minutes of the Special Meeting of Friday, October 26, 1992, were approved. 3. APPROVAL OF CLAIMS ADMIN 1992 Ann Kolata Abstract & Title Corp. Commercial Office Products -1- COMMISSION APPROVED THE MINUTES OF THE SPECIAL MEETING OF OCTOBER 26, 1992 $ 20.35 35.00 33.84 Remarks to the South Bend Redevelopment Commission In Opposition to a $3 Million Bond Issue To Begin the College Football Hall of Fame Project �- November 20, 1992 With the selling of these bonds, South Bend will plunge into a financial disaster of the first magnitude. This project will never get the corporate funding promised by the Kernan administration when it boasted that it would raise fifty per cent of the $14 million price tag within 60 days. That statement went into effect 120 days ago and the community has yet to hear of the first pledge. Obviously, corporate America is not anxious to squander its charitable funds on a project which has such a poor track - record to date. Why should South Bend bail out the National Football Foundation which has failed after 43 (yes, 43) years to establish a successful College Football Hall of Fame? Beginning in 1949 the NFF began to put on a number of black -tie dinners in the New York City area to raise money for a Hall. Those fund- raisers, carried on over a period of time, eventually caught the interest of New York State officials who told the NFF to either stop the fund- raising or begin the Hall project. State authorities were apparently alarmed by large sums of money being collected and then plowed back into more fundraising- -and for the usual "administrative" expenses. Thirty years later the Hall finally became a reality at Kings Island mainly due to the generosity of the Taft Broadcasing Company. The NFF, after three decades of fundraising, contributed only $250,000. As a community, `�► should we be consorting with an organization having such a shady past? This is the organization that has repeatedly overstated what the Hall will draw. It was expected to draw 300,000 yearly at Kings Island. It never came close to that figure and, at the end, was only drawing one -tenth of that figure. In early 1991 when there was a deal to move the Hall to Memphis, an NFF consultant said that it would draw 300,000 there. The Kernan administration is now confidently talking about the Hall drawing 200,000 as a "worst- case" figure. The reality will be that after a couple of modestly good years, perhaps in the 75,000- 100,000 range, the Hall can be expected to fizzle as an attraction. We will be hard - pressed to equal the Kings Island attendance of 30,000- 40,000 unless the Kernan administration brings in the dinosaurvisplay as was done to pump up attendance at the Studebaker National Museum. Isn't it curious that a final legal agreement between the City of South Bend and the NFF is still not a reality? We keep hearing that the attorneys are still working on it. Surely, there is some behind- the - scenes activity going on which bodes ill for this project. For example, no national officer of the NFF spoke in favor of the Hall at the Nov. 5 hearing before the State Board of Tax Commissioners on the bond issue which brings us together today. National officials, to my knowledge, were not at the July 29, 1992, public 2 hearing at Century Center. Why have they had such a low visibility in South Bend since the mid -July announcement of our selection as the next site of the Hall? Surely NFF officials can't be upset with us over the basic proposal made by the Kernan administration. What more can they ask of the City than what was promised them on pp. 60 and 61 of South Bend's proposal: The entire capital cost of the facility will be financed through the City of South Bend with no expense to the NFFCHF .... The Century Center Board of Managers [read: South Bend taxpayers will be responsible for any operating shortfalls which may arise from the operation of the Hall. To judge from all of the Happy Talk at the July 29 hearing and the South Bend Tribune's euphoric "Touchdown" editorial of July 12, the South Bend - NFF marriage was one which was made in heaven. If the ardor of those lovers was so strong, why has the marriage not been consummated after all these months? The lack of a successful corporate fundraising campaign has to be a big snag in the proceedings. The results of my own campaign to dissuade the forty corporations named in South Bend's proposal from contributing to the Hall show that the corporations are not enthusiastic about a project which has already been a loser. The following corporations have said flat out that they have not been contacted by South Bend officials and will not contribute to the Hall: Ameritech, Cummins Engine, Goodyear Tire & Rubber, U. S. Sprint, and USF&G. Two corporations, Nike and Marriott, mistakenly thought I was asking for money for the Hall and said they would not contribute. (In all fairness, perhaps Mayor Kernan's silver - tongue money- raisers will be more successful with those firms.) Whirlpool told me that it is in the process of rethinking its corporate - giving policy and will defer such requests till Feb. 1993. Coca -Cola and USAir report that they have not been contacted by South Bend's Hall team. My campaign to convince large corporations to "Say 'No' to the CFHF" will be renewed with vigor - -and a couple of bombshells which will give the corporations even more reason for not contributing to a project of dubious social importance. That second mailing will be followed up with phone calls to all corporations who haven't been heard from. Given the large number of firms who told me that they had not been contacted by the South Bend fundraisers, I sometimes wonder if I'm doing more work in this area than my competitors. Let's quickly summarize several reasons for stopping the Hall project at this point by not approving the $3 million sale of bonds. 1. The failure of thEWF from 1949 to 1992 to come up with a successful Hall of Fame. 2. The failure of the Kernan administration in its corporate fundraising. 3. The limited appeal of the Hall: almost entirely just to middle- income- and -above white males t3 4. An unrealistic 200,000 yearly attendance figure -- especially after the NOW first two years. The Kernan administration refuses to be specific as to how it arrived at that number -- despite my repeated requests. 5. The Hall is the kind of attraction you might go to once - -but repeat visits will be highly unlikely. Thus it differs markedly from Covaleskie Stadium, Century Center, and the Morris Civic Auditorium. 6. Individual college football teams have their fanatical followings, but the Kings Island experience shows that their interest does not carry over to college football as a whole. 7. It is disturbing to note that 60% of the $3 million bond issue will be spent for "exhibitry design and production." South Bend taxpayers have no idea of the on -going cost that will be involved in the "freshening up" of the Hall's scandalously - expensive exhibits. 8. The Hall's impact on our tourist industry has been wildly overstated. It is likely that there will be no net gain. Attendance at the Hall will likely harm existing attractions. 9. Notre Dame football weekends will not be anything special for the Hall. In fact, the Hall might as well close on game days. 10. The Hall neither addresses a serious need in the community nor does it mesh with the normal responsibilities and obligations of a city government towards its citizens. The Hall of Fame will quickly become a white elephant and a prime piece of downtown property will end up being poorly - utilized. The Hall will be a millstone around the necks of our taxpayers as continuing shortfalls and bond payments add one more money- losing civic venture - -an area in which we specialize. I urge the Redevelopment Commission to come to its senses and stop the Hall project by not selling $3 million of TIF revenue bonds. Jim Cierzniak 1156 E. Victoria St. South Bend, IN 46614 South Bend Redevelopment Commission Regular Meeting - November 6, 1992 3. APPROVAL OF CLAIMS (Cont.) ADMIN 1992 continued... General Fund 344.42 VISA - Valley American Bank 5.33 Day- Timers Inc. 40.00 South Bend Drafting 36.00 Travelmore 390.00 Petty Cash 107.86 South Bend Tribune 10.84 VISA - Valley American Bank 392.12 Tri County News 11.38 Hedy Robinson 88.00 Cleo Hickey 50.65 NIPSCO 3.26 Indiana Michigan Power Co. 366.46 South Bend Water Works 135.76 Ziker Cleaners 30.00 TOTAL ADMIN 1992 $ 2,101.27 STUDEBAKER CORRIDOR BOND Emerick & Associates Inc. $ 100.00 Michiana Lock & Key 30.00 Peirce & Associates 165.00 Specialty Systems of Illinois 1,120.00 Ruth M. Hoover, SRA 100.00 United Construction 35.50 James R. Freeman 5,229.55 C.C. Phillips 1,700.00 St. Joseph County Auditor 3.00 Area Plan Commission 100.00 St. Joseph County Recorder 15.00 Jimmy Ball 7,635.00 TOTAL STUDEBAKER CORRIDOR BOND $ 16,233.05 S.B.C.D.A. TIF - GENERAL ACCOUNT York Title & Escrow, Inc. $ 50.00 TOTAL S.B.C.D.A. TIF - GENERAL ACCOUNT $ 50.00 GRAND TOTAL $ 18,384.32 -2- South Bend Redevelopment Commission Regular Meeting - November 6, 1992 3. APPROVAL OF CLAIMS (Cont.) 4 Upon a motion made by Ms. Huddleston, seconded by Mr. Faccenda and unanimously carried, the Commission formally approved the claims submitted November 6, 1992. There were no Communications. 5. OLD BUSINESS a. Commission approval requested for Contract with Holladay Corporation for real estate services in the Toll Road Industrial Park. Mrs. Kolata explained that we want Holladay Corporation to be our listing agent for property in the Toll Road Industrial Park. This item was continued from a previous meeting because of confusion over the description of lots to be listed with the contract. Several preliminary plats exist which have different sets of lot numbers. We have attached a map to the contract outlining the four parcels to be listed with Holladay and revised the contract to refer to the map. The contract begins on October 1, 1992 and extends through September 30, 1993. Holladay Corporation will receive a 10W commission for sale of the land. Mrs. Kolata noted that John Phair, Vice President of Holladay Corporation, has sent us a letter advising that Douglas Hunt will not receive any financial benefit from this contract. Doug is the brother of Jon Hunt, Executive Director of the Department of Economic Development. Mrs. Kolata noted that the land we purchased in the Toll Road Industrial Park from the Industrial Foundation was purchased with a lease /purchase bond and must be leased rather than purchased throughout the life of the bond. -3- COMMISSION APPROVED THE CLAIMS SUBMITTED NOVEMBER 6, 1992 THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Regular Meeting - November 6, 1992 5. OLD BUSINESS (Cont.) a. continued... Mrs. Kolata noted that the contract does not list a value for the property because we have not received the appraisals yet. Upon a motion by Mr. Faccenda, seconded by Ms. Huddleston and unanimously carried, the Commission approved the Contract with Holladay Corporation for real estate services in the Toll Road Industrial Park. 6. NEW BUSINESS a. Commission approval requested for Certificate of Waiver for Norman L. and Deborah G. Buckman for property located at 1014 N. Eddy Street. Mrs. Kolata noted that the Certificate of Waiver is related to the Rental Rehab Loan. It waives the yearly payment on the loan if the property meets the requirements of the loan. This Certificate of Waiver waives the payment amount of $789.00 for the year ending August 30, 1992 for Norman L. and Deborah G. Buckman. Upon a motion by Mr. Faccenda, seconded by Ms. Huddleston and unanimously carried, the Commission approved the Certificate of Waiver in the amount of $789.00 for the year ending August 30, 1992 for Norman L. and Deborah G. Buckman for property located at 1014 N. Eddy Street. b. Commission approval requested for Resolution No. 1111 determining to pay certain expenses incurred for local public improvements in or serving the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) from the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) Special Fund. -4- COMMISSION APPROVED THE CONTRACT WITH HOLLADAY CORPORATION FOR REAL ESTATE SERVICES IN THE TOLL ROAD INDUSTRIAL PARK COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN THE AMOUNT OF $789.00 FOR THE YEAR ENDING AUGUST 30, 1992 FOR NORMAN L. AND DEBORAH G. BUCKMAN FOR PROPERTY LOCATED AT 1014 N. EDDY STREET South Bend Redevelopment Commission Regular Meeting - November 6, 1992 6. NEW BUSINESS (Cont.) b. continued... Mrs. Kolata explained that Resolution No. 1111 starts the appropriation process to use money for project expenses related to the Palais Royale Building. We are collecting money from rent, but are unable to use that money to pay expenses until the money is appropriated. Upon a motion by Mr. Faccenda, seconded by Ms. Huddleston and unanimously carried, the Commission approved Resolution No. 1111 determining to pay certain expenses incurred for local public improvements in or serving the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) from the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) Special Fund. c. Commission approval requested for Resolution No. 1113 approving an application for personal property tax deduction for property located at 2820 Viridian Drive in the Airport Economic Development Area (Mack Tool and Engineering, Inc.) Mr. Beitzinger gave the staff report on the project. Mack Tool and Engineering is a precision machine shop which manufactures prototype and experimental parts primarily for use in the medical and aerospace industries. Their project calls for the installation of a EDM machine a VMC 4020 machine, three VMC 2020 machines, a CNC lathe, a Control Laser Etcher and a CAD /CAM system with a RAM optical camera. This equipment will increase production capacity by over 20%. The total estimated cost of the equipment is $458,000. The project will create three new permanent full -time jobs in the first year, representing an annual payroll of $135,000 and will maintain twenty -5- COMMISSION APPROVED RESOLUTION NO. 1111 DETERMINING TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 1A) FROM THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 1A) SPECIAL FUND South Bend Redevelopment Commission Regular Meeting - November 6, 1992 6. NEW BUSINESS (Cont.) c. continued... existing permanent full time jobs with an annual payroll of $712,625. 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 the Airport Economic Development Area. It is also located in a Tax Incremental Financing Allocation Area. The project qualifies for five years of personal property tax abatement under the Tax Abatement Ordinance. Mack Tool was granted a real property abatement and a personal property abatement on February 12, 1990. Without abatement, the estimated taxes on the new equipment would be $41,783. With abatement, the taxes are estimated to be $7,409. Therefore, the cost of the abatement is approximately $34,374 over the five years of abatement. Mr. Beitzinger noted that two of the three new employees have already been hired and they anticipate being able to hire more than the three projected new employees. Mr. Hartz noted that Mack Tool does very high tech work for the medical industry for a region extending from Kalamazoo to Warsaw. Upon a motion by Mr. Faccenda, seconded by Ms. Huddleston and unanimously carried, the Commission approved Resolution No. 1113 approving an application for personal property tax deduction for property located at 2820 Viridian Drive in the Airport Economic Development Area (Mack Tool and Engineering, Inc.) -6- COMMISSION APPROVED RESOLUTION NO. 1113 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2820 VIRIDIAN DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (MACK TOOL AND ENGINEERING, INC.) South Bend Redevelopment Commission Regular Meeting - November 6, 1992 6. NEW BUSINESS (Cont.) d. Commission approval requested for Resolution No. 1114 approving the Fair Reuse Value of Property in the Airport Economic Development Area (Parcel 18B). Mrs. Kolata explained items 6.d., 6.e., and 6.f. together since they are related. The Redevelopment Authority purchased this property in the Toll Road Industrial Park with a lease /purchase bond. Therefore, the land cannot be sold outright except under a couple of very specific circumstances. The property is being offered for purchase under two options: a) a 20 -yr lease /purchase with a minimum annual lease rental of $4,583.35 with title to be conveyed for $1.00 at the termination of 20 years; or b) a prepaid lease /purchase for a minimum total price of $45,000 paid at closing with title conveyed at closing, but held in escrow for a period of 20 years, then released to the successful bidder. Mrs. Kolata noted that the bid specifications for the project are: 1) construction must start within one year; 2) all proposals must conform to the covenants for the Toll Road Industrial Park; 3) building plans, landscaping, on -site parking, roadways, etc., must be approved in advance by the Design Review Committee and the Industrial Foundation; 4) the functions of the property with regard to storm water, retention and detention will not be reduced or impeded; and 5) development of the principal structure must be completed within two years of the award. Mrs. Kolata noted that bond counsel has determined it is possible to convey land as a pre -paid lease /purchase. The feasibility depends on the ratio between the amount of the bond used to purchase property in relation to the amount of debt service the pre -paid purchase price represents. We have not yet been able to determine how much of the bond was used to purchase this parcel, because the -7- South Bend Redevelopment Commission Regular Meeting - November 6, 1992 6. NEW BUSINESS (Cont.) d. continued... industrial park land was bought as a large unit. Mrs. Kolata noted that the price for the property is low because, although it is almost nine acres of land, a large portion of it is a retention pond. Only some of the ground is buildable. We are working with someone who is interested in developing the property to the south of it and wants this portion also. Upon a motion by Ms. Huddleston, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1114 approving the Fair Reuse Value of property in the Airport Economic Development Area. (Parcel 18B) e. Commission approval requested for Bid Svecifications and Design Considerations for Parcel 18B in the Airport Economic Development Area. COMMISSION APPROVED RESOLUTION NO. 1114 APPROVING THE FAIR REUSE VALUE OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (PARCEL 18B) Upon a motion by Mr. Faccenda, seconded COMMISSION APPROVED THE BID by Ms. Huddleston and unanimously SPECIFICATIONS AND DESIGN carried, the Commission approved the Bid CONSIDERATIONS FOR PARCEL 18B IN Specifications and Design Considerations THE AIRPORT ECONOMIC DEVELOPMENT for Parcel 18B in the Airport Economic AREA Development Area. f. Commission approval requested to Dublish Notice of Intended Sale of Property in the Airport Economic Development Area with Dublication dates to be November 13 and November 20, 1992, and receipt of bids to be at 10:00 a.m., December 4. 1992. Upon a motion by Ms. Huddleston, seconded by Mr. Faccenda and unanimously carried the Commission authorized publication of the Notice of Intended Sale of Property in the Airport Economic Development Area with publication dates to be November 13, and November 20, 1992, and receipt of bids to be at 10:00 a.m., December 4, 1992. (Parcel 18B) -8- COMMISSION AUTHORIZED PUBLICATION OF NOTICE OF INTENDED SALE OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA WITH PUBLICATION DATES TO BE NOVEMBER 13, AND NOVEMBER 20, 1992, AND RECEIPT OF BIDS TO BE AT 10:00 A.M., DECEMBER 4, 1992 (PARCEL 18B) South Bend Redevelopment Commission Regular Meeting - November 6, 1992 6. NEW BUSINESS (Cont.) g. Commission approval requested for Corporate Undertaking in connection with West Washington Homes redevelopment prol ect . Ms. Manier explained that this is a final step in the conveyance of the 1200 block of W. Washington to South Bend Heritage for the West Washington Homes affordable housing project. This document allows the title company to issue a title insurance policy for all the properties, including two which are still in condemnation. By these Corporate Undertakings, the Commission promises to complete the condemnations so that South Bend Heritage will not lose its interest in those properties. Upon a motion by Mr. Faccenda, seconded COMMISSION APPROVED THE CORPORATE by Ms. Huddleston and unanimously UNDERTAKING IN CONNECTION WITH carried, the Commission approved the WEST WASHINGTON HOMES Corporate Undertaking in connection with REDEVELOPMENT PROJECT West Washington Homes redevelopment project. h. Staff report on bid for Parcel 6 in the Studebaker Corridor Development Area (Schafer Gear Works) . Mr. Pocius noted that Disposition Parcel 6 is located at the southeast corner of Main and Tutt streets and is approximately one third of an acre. Schafer Gear Works was the sole bidder for the parcel when we offered it for public bid. They propose to build a 15,000 sq. ft. addition to their present facility. Approximately 2,500 sq. ft. will be used as office space with the remainder used for manufacturing. The addition will have red brick exterior to match the existing building. Landscaping along Main Street will match the existing landscaping, but they do not plan additional landscaping due to the constraints of the site. The staff recommends sale of the parcel to Schafer Gear Works. -9- South Bend Redevelopment Commission Regular Meeting - November 6, 1992 6. NEW BUSINESS (Cont.) i. continued... Upon a motion by Ms. Huddleston, seconded by Mr. Faccenda and unanimously carried, the Commission approved sale of Disposition Parcel 6 to Schafer Gear Works for $7,600.00. i. Commission designation of signatory for documents related to replatting certain parcels in the Studebaker Corridor Development Area. Mr. Pocius explained that the Area Plan Commission is replatting the Studebaker Corridor from small lots into larger disposition parcels. There will be a number of documents which will need to be signed during the process. Rather than bring each before the Commission the Commission may designate a signatory who can sign them as they are ready. The staff recommends designating Ann Kolata as signatory. Upon a motion by Ms. Huddleston, seconded by Mr. Faccenda and unanimously carried, the Commission designated Ann Kolata as its signatory for documents related to replatting of parcels in the Studebaker Corridor Development Area. 7. PROGRESS REPORTS COMMISSION APPROVED SALE OF DISPOSITION PARCEL 6 TO SCHAFER GEAR WORKS FOR $7,600.00 COMMISSION DESIGNATED ANN KOLATA AS ITS SIGNATORY FOR DOCUMENTS RELATED TO REPLATTING OF PARCELS IN THE STUDEBAKER CORRIDOR DEVELOPMENT AREA Mrs. Kolata reported that the State Board of PROGRESS REPORTS Tax Commissioners held a hearing on the College Football Hall of Fame bond issue on November 5. They promised to give an expeditious decision. Mrs. Kolata also reported that the Avanti Building has been completely demolished and hauled away. Asbestos removal has begun in both the Southern Hotel and the Borden buildings and the bid for demolition of those buildings will be received on November 9. -10- South Bend Redevelopment Commission Regular Meeting - November 6, 1992 7. PROGRESS REPORTS (Cont.) The Housing Development Corporation has rehabbed houses and is now pouring concrete for parking and doing landscaping for the houses. In the Airport Economic Development Area, the golf course is well under construction. A lot of the roadwork has been completed, and work on the additional 1000 feet of Nimtz Parkway east of Mayflower Road is well underway. Mr. Wolf reported that the staff organized a bus tour of the Airport 2010 project for the Design Review Committee. It was very helpful. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment NEXT COMMISSION MEETING Commission is scheduled for November 20, 1992 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come ADJOURNMENT before the Redevelopment Commission, Mr. Faccenda made a motion that the meeting be adjourned. Ms. Huddleston seconded the motion and the meeting was adjourned at 10:35 a.m. Paula N. Auburn, President Ann E. Kolata, Director -11-