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HomeMy WebLinkAboutRM 12-18-92SOUTH BEND REDEVELOPMENT COMMISSION "REGULAR MEETING December 18, 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. K. C. POCiUS, Economic Dev. Specialist Mr. David Norris, Economic Dev. Specialist Mr. James Riggs, Economic Dev. Specialist Mr. Mike Beitzinger, Economic Dev. Specialist Mr. Thom Howell, U -93 Mr. Carter Wolf, Center City Associates Mr. Les Fox, Real Services Mr. Mike Hammes, Real Svcs Board of Directors Mr. Pete Mullen, Real Svcs Board of Directors Mr. Randy Rompola, Baker & Daniels Mr. Mark Krcmaric, Barnes & Thornburg Mr. George Herendeen, Policemen's Credit Union Ms. Auburn announced that the Executive Session held prior to the matting would be continued following adjournment of the Regular Meeting. 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, December 4, 1992, were approved. 3. APPROVAL OF CLAIMS ADMIN 1992 Petty Cash $ South Bend Drafting -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF DECEMBER 4, 1992 54.95 170.50 South Bend Redevelopment Commission $ 11.00 Regular Meeting - December 18, 1992 4,887.35 3. APPROVAL OF CLAIMS (Cont.) 34.58 ADMIN 1992 continued... 600.00 South Bend Tribune 36.63 Equipment Services 202.43 R.C. Blake & Associates 2580.55 Tri- County News 34.58 Alcoholism Council 20.00 Dainty Maid Bake Shop 17.70 Plastimatic Arts 110.00 Service America Corp. 126.88 Bourdon & Bourdon Studios 264.00 Gene's Camera Store 17.50 TOTAL ADMIN 1992 $ 3635.72 STUDEBAKER CORRIDOR BOND Petty Cash $ 11.00 Troyer Group 4,887.35 Tri - County News 34.58 South Bend Water Works 600.00 Cola Associates Inc. 1,945.00 B. David Huntington & Associates 8,606.25 C.R.I., Inc. 95.00 United Construction 39.50 Thomas General Construction 65.00 Specialty Systems 785.00 TOTAL STUDEBAKER CORRIDOR BOND $ 17,068.68 S.B.C.D.A. TIF - GENERAL ACCOUNT Indiana Michigan Power Co. $ 1,553.85 NIPSCO 221.86 South Bend Water Works 136.25 Michiana Lock & Key 3.00 Enyart Electric Motor Service Inc. 179.00 G.W. Berkheimer Co., Inc. 42.73 O.J. Shoemaker, Inc. 158.37 All Phase Electric 165.00 Howard Park Hardware 5.65 Real Estate Management Corp. 523.75 Creative Art Forms 35.00 TOTAL S.B.C.D.A. TIF - GENERAL ACCOUNT $ 3,024.46 -2- South Bend Redevelopment Commission Regular Meeting - December 18, 1992 3 4. APPROVAL OF CLAIMS (Cont.) T.I.F. 1988 E.J. White TOTAL T.I.F. 1988 GRAND TOTAL Upon a motion made by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission formally approved the claims submitted December 18, 1992. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS a. Receipt of Bid for Disposition Parcel 27/28 in the Studebaker Corridor Development Area. Mrs. Kolata opened the one bid that was received for Disposition Parcel 27/28 which is located at the corner of Michigan and Stull streets. That bid was from Real Services for $23,800, the minimum bid requirement. They have submitted a check in the amount of $2,380 as a performance guarantee. Real Services proposes to build a two -story office building with full basement, 7500 square feet on each level. The building will house the administrative and program offices of Real Services that are presently located in scattered sites throughout South Bend. Korbuly Graf is the architect for the project. A site plan and rendering were submitted with the bid. They expect construction to begin in January 1993 and be completed in 240 days. -3- $ 1,574.00 1,574.00 $ 25,302.86 COMMISSION FORMALLY APPROVED CLAIMS SUBMITTED DECEMBER 18, 1992 FOR PAYMENT THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - December 18, 1992 6. NEW BUSINESS (Cont.) a. continued... Mrs. Kolata noted that this parcel is adjacent to the new Policemen's Federal Credit Union site. Mrs. Kolata noted that the staff is pleased with the design and location of the building, with parking to the north and west. It conforms nicely to our vision for the area. The staff recommends accepting the bid from Real Services. b. Commission action on bids received for Disposition Parcel 27/28 in the Studebaker Corridor Development Area. Upon a motion by Mr. Piasecki, seconded by Mr. Doncho and unanimously carried, the Commission awarded Disposition Parcel 27/28 to Real Services for $23,800. c. Commission approval requested for Resolution No. 1120 approving the transfer of real property in the Studebaker Corridor Development Area to the City of South Bend. Mrs. Kolata noted that when the bid packet was prepared for Parcel 27/28, one parcel of land was omitted from the legal description. The Commission owns the property and intended to include it in this offering. Real Services' proposal for Disposition Parcel 27/28 is dependent on their acquiring the additional parcel also. To remedy the situation we propose to convey the additional parcel to the Board of Public Works and ask the Board of Works to convey the property to Real Services. Since Real Services is a not - for - profit agency, the Board of Public Works has the ability to convey the land to Real Services without going through the bidding process. -4- COMMISSION AWARDED DISPOSITION PARCEL 27/28 TO REAL SERVICES FOR $23,800 South Bend Redevelopment Commission Regular Meeting - December 18, 1992 6. NEW BUSINESS (Cont.) c. continued... COMMISSION APPROVED RESOLUTION NO. 1120 APPROVING THE TRANSFER OF REAL PROPERTY IN THE STUDEBAKER CORRIDOR DEVELOPMENT AREA TO THE CITY OF SOUTH BEND Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1120 approving the transfer of real property in the Studebaker Corridor Development Area to the City of South Bend. d. Report on refinancing of 1985 and 1986 Tax Increment Revenue Bonds. Mrs. Kolata noted that we have finally completed the refinancing of the 1985 and 1986 Tax Increment Revenue Bonds. Mark Krcmaric from Barnes & Thornburg reported on the results of the sale. We began the refinancing of these bonds in January 1992. In May the present value savings was going to be approximately $75,000. The savings is not simply a matter of the current interest rate, but includes what the investment earnings are on the present issue. In August, a couple of days before the anticipated sale, the potential savings vanished and we put the sale on hold, hoping for a better market later. We have re -run the numbers periodically during this time and did not find the market favorable for a reasonable savings. However, recently, that changed and we were able to realize a present value savings of $155,044.55 at a sale held December 7. Raffensperger Hughes bought the bonds and we expect to Close on this issue next week. e. Commission approval requested for Resolution No. 1121 approving an application for real property tax deduction for property located at 1130 South Main Street in the Studebaker Corridor Development Area. Mr. Beitzinger read the staff report on the project. Policemen's Federal Credit Union proposes to construct a 4,500 square foot building at the corner of -5- South Bend Redevelopment Commission Regular Meeting - December 18, 1992 6. NEW BUSINESS (Cont.) e. continued... Main and Stull Streets. The building itself will be 3,800 square feet with a 700 square foot canopy over the drive -thru teller lanes. This location will be the only operating office of the credit union which had to move as a result of redevelopment acquisition in the Studebaker Corridor. The total cost of construction is estimated at $403,000. The project will create four new jobs in the first year representing an annual payroll of $36,000 and will retain five existing positions representing an annual payroll of $103,000. The property is properly zoned for the proposed use. The property is located in a Tax Abatement Impact Area and in a Tax Incremental Financing Allocation Area. The credit union does not meet the minimum requirement of a 7,500 square foot building to qualify for tax abatement under the tax abatement ordinance. However, they have asked to be considered based on the additional square footage included in the drive -thru lanes and canopy. The combined square footage is 12,380 square feet. The credit union was allowed to count the drive -thru area in its bid for development of the parcel. Without abatement, the project would generate approximately $57,001 of new taxes over the three year period. With abatement the project will generate approximately $19,190 in taxes. Therefore, the cost of the abatement is approximately $37,810 over the three year period. Mrs. Kolata noted that the drive -thru lanes are a necessary part of the drive -up teller window. Mr. Herendeen noted that they were required to have a certain amount of drive -thru space on the -6- South Bend Redevelopment Commission Regular Meeting - December 18, 1992 6. NEW BUSINESS (Cont.) e. continued... site to keep cars from "stacking" in the street. The staff recommends approving this application. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1'121 approving an application for real property tax deduction for property located at 1130 South Main Street in the Studebaker Corridor Development Area. (Policemen's Federal Credit Union) f. Commission approval requested for Commercial Lease with Office Interiors for property in the South Bend Central Development Area. Mrs. Kolata noted that this Lease with Office Interiors is for retail space in the Palais Royale building. Ms. Manier explained that the Lease is for their current space as well as some additional space, for a total of approximately 3200 square feet. The term of the Lease is two years, ending October 1994, with the option of renewing for an additional three years. The rental for the two year term totals $47,955. If they exercise their option to renew, there will be an increase in the rent. The Lease contains all of the standard items usually found in our leases. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved the Commercial Lease with Office Interiors for property in the South Bend Central Development Area. g. Commission app Resolution No. acquisition of Washington /Cha Eminent Domain W81 -1) roval requested for 1122 related to _property in the West An Development Area by (Parcels W86 -2, W86 -3 and -7- COMMISSION APPROVED RESOLUTION NO. 1121 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1130 SOUTH MAIN STREET IN THE STUDEBAKER CORRIDOR DEVELOPMENT AREA COMMISSION APPROVED THE COMMERCIAL LEASE WITH OFFICE INTERIORS FOR PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - December 18, 1992 6. NEW BUSINESS (Cont.) g. continued... Mr. Norris explained that we would like the Commission to authorize the purchase of two more pieces of property in the West Washington area: the Food Bank of Michiana and property belonging to John Bivens. We have received approval for our third Section 108 loan and have funds available to proceed on these properties. The Food Bank has recently been shut down because their facility doesn't meet the requirements of the food distribution process. They need to move and our acquisition of their property will help them to do so. They have been looking for another location. Mr. Norris noted that the Bivens property includes a vacant parcel and a parcel with a house. Mrs. Kolata noted that Resolution No. 1122 authorizes the staff to send a purchase offer and, if no agreement is reached, to go to condemnation to acquire the property. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1122 related to acquisition of property in the West Washington- Chapin Development Area by Eminent Domain. h. Commission approval requested for Proposal for surveying services in the Studebaker Corridor Development Area. Mrs. Kolata explained that we are thinking of doing some modifications to the boundaries of the Studebaker Corridor Development Area and need to have some legal descriptions prepared. Peirce & Associates worked on the original legal description. They have submitted a Proposal to do the additional work in an amount not to exceed $400 and be complete no later than January 10, 1993. The -8- COMMISSION APPROVED RESOLUTION NO. 1122 RELATED TO ACQUISITION OF PROPERTY IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA BY EMINENT DOMAIN South Bend Redevelopment Commission Regular Meeting - December 18, 1992 6. NEW BUSINESS (Cont.) h. continued... staff recommends accepting their proposal. Ms. Auburn asked if the price was correct. Ms. Kolata responded that the Area Plan Commission now has a digitized computer system with computer mapping. They are mapping the entire county. The Studebaker Corridor area is already completed, so we will provide Peirce with a lot of information. The County's ability to do this mapping will help us immensely. Upon a motion by Mr. Faccenda, seconded COMMISSION ACCEPTED THE PROPOSAL by Mr. Piasecki and unanimously carried, FROM PEIRCE & ASSOCIATES FOR the Commission accepted the proposal from SURVEY WORK IN THE STUDEBAKER Peirce & Associates for survey work in CORRIDOR the Studebaker Corridor Development Area. i. Staff report on acquisition of property in the Studebaker Corridor Development Area. There is no report on acquisition of property in the Studebaker Corridor. However, there is a report on acquisition of property in the South Bend Central Development Area. We sent a purchase offer for property at 611 South Clinton in the amount of $2,000. We received a counter offer in the amount of $4,000. The staff recommends accepting the counter offer. This is a lot with a very large structure in very bad condition. There is a demolition order on it, but we intend to put it up for bid and try to get someone to rehabilitate it. Upon a motion by Mr. Faccenda, seconded by Mr. Piasecki and unanimously carried, the Commission accepted the counter offer in the amount of $4,000 for property located at 611 South Clinton in the South Bend Central Development Area. WZ COMMISSION ACCEPTED THE COUNTER OFFER IN THE AMOUNT OF $4,000 FOR PROPERTY LOCATED AT 611 SOUTH CLINTON IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - December 18, 1992 6. NEW BUSINESS (Cont.) j. Commission approval requested for Resolution No. 1123 authorizing reimbursement to the City of South Bend for expenditures made within the South Bend Central Development Area. Mrs. Kolata noted that Resolution No. 1123 is similar to three previous resolutions that reimburse the City for expenses related to the Hall of Fame project. There are five separate claims, totalling $27,094.63. Upon a motion by Mr. Faccenda, seconded by Mr. Doncho and unanimously carried, the Commission approved Resolution No. 1123 authorizing reimbursement to the City of South Bend for expenditures made within the South Bend Central Development Area. k. Commission approval requested for Resolution No. 1124 amending Resolution No. 1118 entitled "A Resolution of the South Bend Redevelopment Commission authorizing the issuance of bonds on parity with the City of South Bend Redevelopment District Tax Increment Revenue Bonds of 1985, the City of South Bend Redevelopment District Tax Increment Revenue Bonds of 1986 and the City of South Bend Redevelopment District Tax Increment Revenue Bonds of 1988 for the purpose of raising money for redevelopment in the South Bend Central Allocation Area." Mr. Rompola explained that Resolution No. 1123 amends the final bond resolution adopted on December 4 by making several minor changes: 1) alters the principal maturities of the bonds so that every principal maturity exceeds $100,000; 2) changes all references to bonds being sold in 1992 to say 1993; and, 3) authorizes the bond purchase agreement to be signed by either the President or vice President of the Commission. The most significant change is the addition of a -10- COMMISSION APPROVED RESOLUTION NO. 1123 AUTHORIZING REIMBURSEMENT TO THE CITY OF SOUTH BEND FOR EXPENDITURES MADE WITHIN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - December 18, 1992 6. NEW BUSINESS (Cont.) k. continued... section authorizing the issuance of bond anticipation notes and the sale of those notes to the Indiana Bond Bank. Mr. Rompola explained that bond anticipation notes may be used instead of short term TIF bonds to pay for preliminary expenses related to a project. That will result in a substantial interest savings to the City because the interest rates on bond anticipation notes (BAN) are significantly lower. When the larger TIF bond is sold next summer to finance the Hall of Fame, proceeds from that will be used to pay off the BAN. The principal amount of the BAN is an amount not to exceed $2,900,000. The interest rate will not exceed 6W. It is anticipated that the actual interest rate will be approximately 3% to 334W. The maturity of the BAN will be December 31, 1994. Mrs. Kolata acknowledged the efforts of Kevin Horton, City Controller, who was not satisfied with the expected interest rate on the TIF bond and worked with Baker & Daniels and Municipal Consultants to find a less costly solution. Upon a motion by Mr. Faccenda, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1124 amending Resolution No. 1118 entitled "A Resolution of the South Bend Redevelopment Commission authorizing the issuance of bonds on parity with the City of South Bend Redevelopment District Tax Increment Revenue Bonds of 1985, the City of South Bend Redevelopment District Tax Increment Revenue Bonds of 1986 and the City of South Bend Redevelopment District Tax Increment Revenue Bonds of 1988 for the purpose of raising money for redevelopment in the South Bend Central Allocation Area." -11- COMMISSION APPROVED RESOLUTION NO. 1124 AMENDING RESOLUTION NO. 1118 ENTITLED "A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION AUTHORIZING THE ISSUANCE OF BONDS ON PARITY WITH THE CITY OF SOUTH BEND REDEVELOPMENT DISTRICT TAX INCREMENT REVENUE BONDS OF 1985, THE CITY OF SOUTH BEND REDEVELOPMENT DISTRICT TAX INCREMENT REVENUE BONDS OF 1986 AND THE CITY OF SOUTH BEND REDEVELOPMENT DISTRICT TAX INCREMENT REVENUE BONDS OF 1988 FOR THE PURPOSE OF RAISING MONEY South Bend Redevelopment Commission Regular Meeting - December 18, 1992 6. NEW BUSINESS (Cont.) k. continued... 7. PROGRESS REPORTS Mrs. Kolata reported that demolition is proceeding in the Studebaker Corridor. The Borden Building has been cleared of asbestos and is scheduled for demolition. The asbestos is being removed from the Southern Hotel. Code Enforcement has been demolishing some smaller structures. A few properties are still in condemnation. Mr. Wolf reported that the Probst House has been sold to Historic Landmarks Foundation of Indiana and it will be renovated. Ms. Auburn noted that Charlotte Huddleston, a Redevelopment Commissioner for the past year, did not seek reappointment. Her work AWN schedule has changed so that she is unable to attend meetings on Friday mornings. Ms. Auburn spoke for the Commission regarding how they have enjoyed her participation and noted that she would be missed. Ms. Auburn expressed appreciation for the staff. It has been a busy year and they have worked very hard. 8. NEXT COMMISSION MEETING The Next Meeting of the Commission will be its Annual Organizational Meeting on January 4, 1993 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Donoho made a motion that the meeting be adjourned. Mr. Piasecki seconded the motion and the meeting was adjourned at 10:55 a.m. i Paula N. Auburn, President -12- FOR REDEVELOPMENT IN THE SOUTH BEND CENTRAL ALLOCATION AREA PROGRESS REPORTS NEXT COMMISSION MEETING 17 Ann E. Kolata, Director