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HomeMy WebLinkAboutRM 11-20-92SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING November 20, 1992 1308 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: Ms. Paula N. Auburn, President Mr. Roman J. Piasecki, Vice President Mr. Michael Donoho, Secretary Mr. Philip J. Faccenda, Assistant Secretary E 3 an Members Absent: Ms. Charlotte Huddleston Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Mr. James Riggs, Economic Dev. Specialist Mr. Michael Beitzinger, Economic Dev. Specialist Bureau of Housing Staff: Ms. Mary Richmond, Assistant Director News Media: Mr. Thom Howell, U -93 Mr. Terry Bland, South Bend Tribune Others: Mr. James Cierzniak Mr. John Grusczynski Mr. Daniel Kois Mr. Rich Hill, Baker & Daniels Mr. Thomas McCalley, Monroe Park Associates Ms. Auburn announced that the Executive Session held prior to the meeting would be continued following adjournment of the Regular Meeting. 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 minutes of the Regular Meeting of Friday, NOVEMBER 6, 1992 November 6, 1992, were approved. APPROVAL OF CLAIMS ADMIN 1992 United Limo Equipment Services -1- $ 144.00 88.20 South Bend Redevelopment Commission egular Meeting - November 20, 1992 3. APPROVAL OF CLAIMS (Cont.) ADMIN 1992 continued... Stores 35.00 National Assn. of Review Appraisers 25.00 DMLS Printers 325.00 East Race Printing 21.90 Ziker & Company Catering 30.00 Business Systems 35.00 Tri- County News 12.16 South Bend Tribune 13.26 TOTAL $ 729.52 STUDEBAKER CORRIDOR BOND York Title & Escrow $ 2,850.00 St. Joseph County Treasurer 789.60 Huntington & Associates 8,606.25 TOTAL $ 12,245.85 .rh TIF 1988 Daniel Pierotti $ 1,237.25 TOTAL $ 1,237.25 GRAND TOTAL $ 14,212.62 Upon a motion made by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission formally approved the claims submitted November 20, 1992. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS a. Public Hearing on Resolution No. 1105 appropriating the proceeds (including investment 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. IA. -2- COMMISSION APPROVED CLAIMS SUBMITTED NOVEMBER 20, 1992 THERE WERE NO COMMUNICATIONS -I ,South Bend Redevelopment Commission egular Meeting - November 20, 1992 5. OLD BUSINESS (Cont.) a. continued... Mrs. Kolata noted that she has received the proof of publication from the South Bend Tribune that the Notice of Public Hearing was published in the Tribune on November 6, 1992. We have not received the affidavit from the Tri- County News, but have a copy of the November 6 issue of that paper, containing the Notice of Public Hearing. Ms. Auburn asked if there was any objection to accepting those items into the record. There was no objection and the items were so entered. Mrs. Kolata noted that the Public Hearing is being held to consider the appropriation of $2,900,000 of tax increment revenue bonds, the proceeds of which would be used to fund expenses related to the College Football Hall of Fame project in downtown South Bend. We originally intended to consider this appropriation on October 16, but the hearing was postponed because of the remonstrance that was filed. There was a remonstrance hearing on November 5 at Century Center. We are now ready to consider the appropriation. The funds will be used for preliminary expenses including engineering, architectural, development of display materials, etc. We intend to redeem the bond next summer when the permanent financing for the Hall of Fame is in place. However, the bond is structured so that we could pay off this bond from tax increment, if necessary. Mrs. Kolata noted that Resolution No. 1105 states that the appropriation is contingent upon receiving approval from the State Tax Board. MIC South Bend Redevelopment Commission egular Meeting - November 20, 1992 5. OLD BUSINESS (Cont.) a. continued... Ms. Auburn opened the Public Hearing for anyone who wished to speak. Mr. James Cierznak read a statement, a copy of which is attached to these minutes. Mr. Piasecki asked Mr. Cierznak if he had been to the College Football Hall of Fame at Kings Island. Mr. Cierznak responded that he had visited it after it was closed. There was no one else who wished to speak. Ms. Auburn closed the Public Hearing for whatever action the Commission wished to take. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1105. C. Commission approval requested for Resolution No. 1104 avvroving the Fair Re -Use Value of property in the Studebaker Corridor Development Area. Mrs. Kolata noted that items 5.c, 5.d., and 5.e. are related. We wish to sell two small parcels of land near the corner of Michigan and Stull streets. The combined value of the parcels is being set at $23,800 for 17,471 square feet. The Bid Specifications state that the use of the site must be new development of at least 15,000 square feet and the new development must meet all zoning requirements and the design guidelines for the area. On -site parking will be discouraged. A minimum of 30W of the facade must be masonry. We intend to publish the Notice of Intended Sale on November 27 and December 4, 1992 and receive bids on December 18, 1992. -4- PUBLIC HEARING ON RESOLUTION NO. 1105 APPROPRIATING THE PROCEEDS (INCLUDING INVESTMENT 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. COMMISSION APPROVED RESOLUTION NO. 1105 b. Commission approval requested for Resolution No. 1105. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1105. C. Commission approval requested for Resolution No. 1104 avvroving the Fair Re -Use Value of property in the Studebaker Corridor Development Area. Mrs. Kolata noted that items 5.c, 5.d., and 5.e. are related. We wish to sell two small parcels of land near the corner of Michigan and Stull streets. The combined value of the parcels is being set at $23,800 for 17,471 square feet. The Bid Specifications state that the use of the site must be new development of at least 15,000 square feet and the new development must meet all zoning requirements and the design guidelines for the area. On -site parking will be discouraged. A minimum of 30W of the facade must be masonry. We intend to publish the Notice of Intended Sale on November 27 and December 4, 1992 and receive bids on December 18, 1992. -4- PUBLIC HEARING ON RESOLUTION NO. 1105 APPROPRIATING THE PROCEEDS (INCLUDING INVESTMENT 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. COMMISSION APPROVED RESOLUTION NO. 1105 C46; outh Bend Redevelopment Commission egular Meeting - November 20, 1992 5. OLD BUSINESS (Cont.) d. continued... Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1104 approving the Fair Re -Use Value of Property in the Studebaker Corridor Development Area. d. Commission approval requested for Bid Specifications and Design Considerations for Disposition Parcels 27/28 in the Studebaker Corridor Development Area. COMMISSION APPROVED RESOLUTION NO. 1104 APPROVING THE FAIR RE -USE VALUE OF PROPERTY IN THE STUDEBAKER CORRIDOR DEVELOPMENT AREA Upon a motion by Mr. Donoho, seconded by COMMISSION APPROVED THE BID Mr. Piasecki and unanimously carried, the SPECIFICATIONS AND DESIGN Commission approved the Bid CONSIDERATIONS FOR DISPOSITION Specifications and Design Considerations PARCELS 27/28 IN THE STUDEBAKER for Disposition Parcels 27/28 in the CORRIDOR DEVELOPMENT AREA Studebaker Corridor Development Area. IL e. Commission approval requested to publish Notice of Intended Sale of Property in the Studebaker Corridor Development Area with publication dates to be November 27 and December 4, 1992 and receipt of bids to be at 10:00 a.m. on December 18, 1992 (Disposition Parcels 27/28). Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission authorized publication of Notice of Intended Sale of Property in the Studebaker Corridor Development Area with publication dates to be November 27 and December 4, 1992 and receipt of bids to be at 10:00 a.m. on December 18, 1992 (Disposition Parcels 27/28). 6. NEW BUSINESS a. Public Hearing on Resolution No. 1112, a Supplemental Appropriation resolution of the City of South Bend Redevelopment Commission. 0* Mrs. Kolata asked to enter the following items into the record: 1) an Affidavit from the Tri- County News that this Legal -5- COMMISSION APPROVED PUBLICATION OF NOTICE OF INTENDED SALE OF PROPERTY IN THE STUDEBAKER CORRIDOR DEVELOPMENT AREA WITH PUBLICATION DATES TO BE NOVEMBER 27 AND DECEMBER 4, 1992 AND RECEIPT OF BIDS TO BE AT 10:00 A.M. ON DECEMBER 18, 1992 South Bend Redevelopment Commission egular Meeting - November 20, 1992 6. NEW BUSINESS (Cont.) a. continued... Notice was published on November 6; and 2) an Affidavit from the South Bend Tribune that the Legal Notice was published on November 6. There was no objection and the items were entered into the record. Mrs. Kolata explained that Resolution No. 1112 appropriates $18,200 from the SBCDA tax increment fund to pay project costs related to the Palais Royale Building. The $18,200 is from rent received for the property, but cannot be spent on utilities or other eligible expenses until it is appropriated. Ms. Auburn opened the Public Hearing. There was no one who wished to speak. Ms. Auburn closed the Public Hearing for whatever action the Commission desired to take. b. Commission approval requested for Resolution No. 1112. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1112. c. Commission approval requested for Resolution No 1115 approving an application for real property tax deduction for property located at 502 S Fellows Street /423 E. South Street in the South Bend Central Development Area _(Monroe Park Associates). Mr. Beitzinger read the staff report on the project. Monroe Park Associates proposes to build a 57 -unit apartment complex in the Monroe Park area. Sixteen one - bedroom, 10 two- bedroom, and 31 three - bedroom units will be built on approximately two acres of land which was acquired and cleared by the Redevelopment Commission. All 57 apartments will be rented to low income people. The total -6- PUBLIC HEARING ON RESOLUTION NO. 1112, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION COMMISSION APPROVED RESOLUTION NO. 1112 CbL,,,South Bend Redevelopment Commission Regular Meeting - November 20, 1992 6. NEW BUSINESS (Cont.) a. continued... projected cost of the project is $3.2 million. The project will create twenty -five (25) construction jobs to build the apartments. It will also create two (2) permanent, full -time jobs and two (2) part -time jobs the first year, representing an annual payroll of $55,000. The property is properly zoned for the proposed use. The property is located in an Economic Development Target Area, a Tax Abatement Impact Area, and a Tax Incremental Financing Allocation Area. The project qualifies for 6 years of real property tax abatement under the Tax Abatement Ordinance, but would like to be considered for 10 years of abatement as a special case. The justification for requesting a ten -year abatement is as follows: 1) 100W of the units will be rented to low income families; 2) the $3,200,000 project cost is 80* of the $4,000,000 project cost requirement to qualify for a ten -year abatement and well above the $1,000,000 required for a six -year abatement; and, 3) the project is an integral part of the neighborhood's efforts for revitalization. Without abatement, the taxes on the project would be approximately $1,508,704 over the ten years. With abatement, the taxes are estimated to be $761,896. Therefore, the cost of the abatement is approximately $746,808 over the ten year period. Mrs. Kolata asked if Mr. McCalley's agreement for tax credits required him to rent 100W of the units to low income people instead of the usual 60 *. Mr. McCalley responded that he was not legally bound to rent all of the units to -7- South Bend Redevelopment Commission egular Meeting - November 20, 1992 6. NEW BUSINESS (Cont.) a. continued... low income people, but would receive more tax credits. He noted that the definition of "low income" is within the range of many average income people and should provide a good income mix. Mrs. Kolata asked what the construction schedule is for the project. Mr. McCalley responded that he expects to break ground in two to four weeks. The staff recommended approving the application for ten years of abatement. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1112 approving an application for ten years of real property tax deduction for property located at 502 S. Fellows /423 E. South and authorized signing of the application as owner of the property. d. Commission approval requested for Declaration of Extended Low - Income Housing Commitment for Low Income Housing Tax Credits (1349 E. Dubail). Ms. Richmond noted that Daniel Kois has a Rental Rehab Loan on the property at 1349 E. Dubail. The Commission, therefore, has a mortgage interest in the property. Mr. Kois has applied for Low Income Housing Tax Credits for the property which puts covenants on the property. As Mortgagee, the Commission needs to consent to the covenants. Mrs. Kolata noted that the document states that the annual credit and the total ten -year credit are both not -to- exceed $2,697.00. The ten -year credit is actually not -to- exceed $26,970. -8- COMMISSION APPROVED RESOLUTION NO. 1112 APPROVING AN APPLICATION FOR TEN YEARS OF REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 502 S. FELLOWS /423 E. SOUTH AND AUTHORIZED SIGNING OF THE APPLICATION AS OWNER OF THE PROPERTY -South Bend Redevelopment Commission egular Meeting - November 20, 1992 6. NEW BUSINESS (Cont.) d. continued... Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved the corrected Declaration of Extended Low- Income Housing Commitment for Low Income Housing Tax Credits. (1349 E. Dubail) e. Staff report on acquisition of property in the South Bend Central Development Area. Mrs. Kolata noted that we sent a purchase offer for $14,000 for the property at 628 Rush Street. We have received a counter offer in the amount of $17,500. The staff recommends accepting the counter offer. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission accepted the counter offer in the amount of $17,500 for property in the South Bend Central Development Area (628 Rush Street). f. Commission approval requested for Contract for Sale of Land for Private Development (Policemen's Federal Credit Union). Mrs. Kolata noted that we previously awarded property to Policemen's Federal Credit Union. We now have the Contract for Sale of Land that sets out a time table for the project and requirements for the land. They plan to begin construction by December 1 and complete construction within seven months. Mrs. Kolata noted that the credit union submitted their plans to the Design Review Committee at its last meeting and they were approved. It is a very nice looking building and we are pleased with the project as submitted. 3 -9- COMMISSION APPROVED THE CORRECTED DECLARATION OF EXTENDED LOW -INCOME HOUSING COMMITMENT FOR LOW INCOME HOUSING TAX CREDITS (1349 E. DUBAIL) COMMISSION ACCEPTED THE COUNTER OFFER IN THE AMOUNT OF $17,500 FOR PROPERTY LOCATED IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (628 RUSH STREET) de velopment r 20, 1992 South Bend Re _ November Regular Meeting NEW BUSINESS (Cont.) 6 f continued.-- seconded Faccenda, carried, Upon a motion by nanimouslY by Mr• Donoho and roved the Contract or the Commiss d fore Private Development edit Union) and Sale °f Land Federal Cr necessary emen all (policemen's of authorized documents. D CONTRP'CT FOR COMMISSION ppPR0�1E FOR P , N, S FEDERAL SALE OF T,AT (POLICEMEN DEVELOPMENT CREDIT UNION) PgpGRESS REPORTS 7. received an update noted that we their Mrs. Kolata Bend Tribune on use South already started to from 'the . They have back of the addition expansion dock at the be They the loading Theater used to the Colfax equipment in where the of their to find brick to have about 50% trying On the ground floor and are brick. they existing exterior expansion, match the ortion of the a within Printing press p up the steel p to begin putting or ahead of, expect They are on, project. the next week. very nice schedule. It will be a Mr. Donoho noted that there was some concern would not use local that the Tribune But, to their craftsmen for construction. have used all local contractors. credit, they Mr. . Bland asked if the Commis ale project and concerned that the Palais Roy project are the College Football Hall of Fame competing for the same charitable dollars. Mrs. Kolata responded that we expect most of the Palais fundraising to be within the region, whereas most of the Hall of Fame solicitation is outside the area. Also, the Palais project requires donations, but the Hall of Fame is requesting sponsorships, a business arrangement rather a than Charitable donation. a. NEXT COMMISSION MEETIN The Next Regular Mee scheduled for December 4/ 1 the COM1 $8 992 a0; t 1 ion is 00 km.. . 7 PROGRESS gEPORTS �r South Bend Redevelopment Commission Regular Meeting - November 20, 1992 6. NEW BUSINESS (Cont.) f. continued... Upon a motion by Mr. Faccenda, seconded COMMISSION APPROVED CONTRACT FOR by Mr. Donoho and unanimously carried, SALE OF LAND FOR PRIVATE the Commission approved the Contract for DEVELOPMENT (POLICEMEN'S FEDERAL Sale of Land for Private Development CREDIT UNION) (Policemen's Federal Credit Union) and authorized execution of all necessary documents. 7. PROGRESS REPORTS Mrs. Kolata noted that we received an update PROGRESS REPORTS from the South Bend Tribune on their expansion. They have already started to use the loading dock at the back of the addition where the Colfax Theater used to be. They have about 50%- of their equipment in the ground floor and are trying to find brick to match the existing exterior brick. On the printing press portion of the expansion, they expect to begin putting up the steel within the next week. They are on, or ahead of, schedule. It will be a very nice project. Mr. Donoho noted that there was some concern that the Tribune would not use local craftsmen for construction. But, to their credit, they have used all local contractors. Mr. Bland asked if the Commission was concerned that the Palais Royale project and the College Football Hall of Fame project are competing for the same charitable dollars. Mrs. Kolata responded that we expect most of the Palais fundraising to be within the region, whereas most of the Hall of Fame solicitation is outside the area. Also, the Palais project requires donations, but the Hall of Fame is requesting sponsorships, a business arrangement rather a than charitable donation. 8. NEXT COMMISSION MEETING The Next Regular Meeting of the Commission is NEXT COMMISSION MEETING scheduled for December 4, 1992 at 10:00 a.m. -10- South Bend Redevelopment Commission Regular Meeting - November 20, 1992 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. "'j6c— /L), Paula N. Auburn, President -11- ADJOURNMENT Ann E. Kolata, Director