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HomeMy WebLinkAboutRM 01-15-93SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING January 15, 1993 10:00 a.m. Presiding Officer: Ms. Paula Auburn President 1. ROLL CALL 1308 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Members Present: Ms. Paula N. Auburn, President Mr. Roman J. Piasecki, Vice - President Mr. Theo F. Sharp, Secretary Mr. Michael Donoho Mr. Philip J. Faccenda Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff Ms. Ann E. Kolata, Director Mrs. Cheryl K. Phipps, Office Manager Mr. Thomas Eddington, Economic Dev. Specialist Mr. James Riggs, Economic Dev. Specialist News Media: Mr. Thom Howell, U -93 Mr. Don Porter, South Bend Tribune Others: Mr. Gary Wetzel, ANCON Construction Mr. Larry Hall, Gainey Realty and Investments Mr. Kevin Horton, City Controller Ms. Auburn announced that the Executive Session held prior to the meeting will be continued following adjournment of the Regular Meeting. 2. APPROVAL OF MINUTES a. Approval of the Minutes of the Annual Organizational Meeting of Monday, January 4. 1993. -1- South Bend Redevelopment Commission Regular Meeting - January 15, 1993 2. APPROVAL OF MINUTES (Cont.) a. continued... Upon a motion by Mr. Donoho, seconded COMMISSION APPROVED THE by Mr. Sharp and unanimously carried, the MINUTES OF THE ANNUAL Commission approved the Minutes of the ORGANIZATIONAL MEETING OF Annual Organizational Meeting of Monday, JANUARY 4, 1993 January 4, 1993. b. Approval of the Minutes of the Special Meeting of Monday, January 4, 1993. Upon a motion by Mr. Piasecki, seconded COMMISSION APPROVED THE by Mr. Sharp and unanimously carried, the MINUTES OF THE SPECIAL Commission approved the Minutes of the MEETING OF MONDAY, Special Meeting of Monday, January 4, JANUARY 4, 1993 1993. 3. APPROVAL OF CLAIMS ADMIN 1993 Federal Express $ 177.50 General Fund 373.17 Indiana Michigan Power 6.00 Petty Cash 121.38 Tri- County News 94.97 South Bend Tribune 92.30 VISA 386.85 Business Communications Center 105.33 Indiana Area Development Council 150.00 R.L. Polk 100.00 St. Joseph County Recorder's Office 51.00 Travelmore 360.00 Plastimatic Arts Corp. 267.00 TOTAL $ 21285.50 -2- South Bend Redevelopment Commission Regular Meeting - January 15, 1993 3. APPROVAL OF CLAIMS (Cont.) E4 K1j P:w:• ' •..11�•• :• York Title & Escrow, Inc. Petty Cash South Bend Water Works St. Joseph County Treasurer Bradberry Brothers Excavating Co. Bradberry Brothers Excavating Co. Cole Associates Inc. Peirce & Associates The Troyer Group Barbara Palatin TOTAL GRAND TOTAL Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Claims submitted January 15, 1993 for approval. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS a. Staff report on Vacation of Alley in Studebaker Corridor Development Area (block bounded by Michigan, Garst, Main and Stull streets) -3- $ 150.00 17.00 75.00 73.03 4,075.00 19,634.00 1,867.89 150.00 4,066.00 650.00 $ 30,757.92 $ 33.043.42 COMMISSION APPROVED THE CLAIMS SUBMITTED JANUARY 15, 1993 FOR APPROVAL THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Regular Meeting - January 15, 1993 5. OLD BUSINESS (Cont.) a. continued... Mrs. Kolata noted that in the discussion STAFF REPORT ON VACATION about the vacation of an alley in the OF ALLEY IN STUDEBAKER Studebaker Corridor, she explained the CORRIDOR DEVELOPMENT AREA wrong alley. The information submitted in the packet was correct. We submitted a petition to vacate an east -west alley that runs through the block bounded by Garst, Main, Stull and Michigan. Mrs. Kolata had explained the north -south alley in that block. It should have no impact on the Policemen's Federal Credit Union, Real Services, nor Gorney Liquor. 6. NEW BUSINESS a. Staff report on bids received for land in the Studebaker Corridor Development Area. Mrs. Kolata noted that we received two bids STAFF REPORT ON BID FOR for disposition parcels in the Studebaker DISPOSITION PARCEL 15 IN THE Corridor on January 4. One bid was for STUDEBAKER CORRIDOR Disposition Parcel 15. The bid was from DEVELOPMENT AREA Gunther W. Jordan Corporation in the amount of $2,690, which is less than the minimum bid price. Mr. Jordan is the president of Exacto. Mr. Jordan proposes to use the property in connection with operations and possible expansion of Exacto. Exacto is a precision machine shop with approximately 80 employees. During the last four years they have invested more than $600,000 in new machinery and equipment and expect that they will soon run out of space in their plant. Further growth in the next three years will require them to expand. They recently purchased the lot immediately north of Disposition Parcel 15 and would -4- South Bend Redevelopment Commission Regular Meeting - January 15, 1993 6. NEW BUSINESS (Cont.) a. continued... like to purchase this lot in order to have sufficient land for building expansion and parking. In their bid they indicated they would like to purchase a small portion of Disposition Parcel 11, but did not submit a bid for that. Mrs. Kolata noted that the staff is favorably impressed with the proposed use for the parcel; however, the bid is less than the minimum offering price and we cannot consider it at this time. We will meet with Gunther Jordan and make a recommendation to the Commission at the February 5 meeting. Mrs. Kolata noted that the other bid received on January 4 was from Devlin Properties and was for Dispostion Parcel 11 which has about 3.1 acres of land. The minimum offering price was $87,500. The bid was in the amount of $88,500, but was subject to certain contingencies attached to the offering price. Devlin Properties is a partnership consisting of John J. Devlin and Gail B. Devlin who are the owners of Alcon Building Products, currently located at 1702 S. Franklin. The bidder proposes to construct a 42,400 sft building to be occupied by Alcon Building Products. The building will contain approximately 4,800 sft of office space and 37,600 sft of warehouse space. They presently employ 20 people and expect this project to increase employment by two to four full time employees. They would begin construction within 30 days of closing on the site and -5- STAFF REPORT ON PROPOSAL FOR DISPOSITION PARCEL 11 IN THE STUDEBAKER CORRIDOR DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - January 15, 1993 6. NEW BUSINESS (Cont.) a. continued... expect to complete construction within five months. Mrs. Kolata noted that the contingencies attached to the bid were as follows: 1) vacation of all alleys located within the parcel; 2) relocation by the City of existing utilities in Parcel 11 to allow for construction of a 200' by 200' building on the northwest portion of the parcel; 3) City installation of new curbs and pedestrian sidewalks where necessary; 4) receipt, by developer, of a favorable phase one environmental assessment; 5) receipt, by developer, of a favorable phase two environmental assessment if recommended; and 6) removal of all debris, building foundations, concrete slabs, stairs, and residential entrance sidewalks, as well as all trees and tree stumps. Mrs. Kolata noted that the staff is very pleased with the proposed use for the parcel, but because of the contingencies, the offer is less than the minimum offering price. We would like to meet with Devlin Properties and bring a recommendation to the February 5 meeting. b. Staff report on proposal received for land in the Airport Economic Development Area. Mr. Riggs noted that we received a proposal from Gainey Realty and Investment Corporation for Lot 18b south in the Toll Road Industrial Park. They have offered a pre-paid 20 year lease /purchase price of 0 South Bend Redevelopment Commission Regular Meeting - January 15, 1993 6. NEW BUSINESS (Cont.) b. continued... $15,000 for the lot. The Commission set the Fair Reuse Value for the 8.9 acre lot for a pre -paid 20 year lease /purchase at $45,000. No bids were received at that price by December 4, 1992. Mr. Riggs noted that the 8.9 acre site contains a large drainage basin and is not presently accessible from public right -of- way. Because of these unique site characteristics, Gainey states that there are only two usable acres. Their proposal of $15,000 for these two usable acres is a higher per -acre price than what they paid for their existing property in 1991. Mr. Riggs noted that Gainey Realty proposes to construct a first class, 11,000 sft general office building to be built on their currently owned property, Lot 20a of the Toll Road Industrial Park. Gainey's annual growth rate has been 30% to 40% in recent years. Assuming this continued growth pattern, Gainey expects to expand to lot 18b south in the next four to five years. Until then, Gainey proposes to clean up and maintain the retention basin. They have submitted all required information, including a performance guarantee in the amount of $2,500. They expect to begin construction of the office building on March 1, 1993 and complete construction by August 31, 1993. As a condition of Commission approval of this proposal, Lot 18b south will be replatted as part of presently owned Lot 20a. The remaining north portion of Lot 18b, which is -7- South Bend Redevelopment Commission Regular Meeting - January 15, 1993 6. NEW BUSINESS (Cont.) b. continued... owned by the Redevelopment Authority, will be replatted as Lot 18c. Mr. Wetzel from ANCON Constriction, contractor for the project, explained that the building is designed for expansion and the present site does not have room for expansion. Gainey intends to clean up the undergrowth surrounding the retention basin, retaining a natural look, and put a picnic area there for employees. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission accepted the proposal from Gainey Realty and Investments Corp. for Lot 18b south in the Airport Economic Development Area (Toll Road Industrial Park) C. Commission approval requested for Fourth Amendment to Lease with the South Bend Redevelopment Authority (South Bend Central Development Area Public Improvement Project). Mrs. Kolata noted that this amendment makes one minor change in the Lease with the Redevelopmetn Authority. Late last year we added four properties in Monroe Park to the acquisition list for rehabilitation. We have decided not to go forward with the one at 530 S. Carroll, so this amendment deletes that one from the list. COMMISSION ACCEPTED THE PROPOSAL FROM GAINEY REALTY AND INVESTMENTS CORP. FOR LOT 18B SOUTH IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (TOLL ROAD INDUSTRIAL PARK South Bend Redevelopment Commission Regular Meeting - January 15, 1993 6. NEW BUSINESS (Cont.) C. continued... Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Fourth Amendment to Lease with the South Bend Redevelopment Authority. (SBCDA Public Improvement Project). d. Commission approval requested for proposal for Phase I Environmental Assessments for Blackthorn Office Park and Toll Road Industrial Park in the Airport Economic Development Area. Mrs. Kolata noted that the Phase I assessment includes site inspection of the property and improvements, records search, research with government agencies to determine past or potential contamination sources. Due to changes in environmental regulations and real estate situations, everyone buying land now asks for a Phase I environmental assessment. We have had a Phase I assessment done on the golf course land, but not for the office sites nor the Toll Road Industrial Park. We have two proposals: one from EIS Environmental Engineers and one from Cole Associates. EIS estimates a cost of $4500 - $6000 for the Blackthorn site and $4800 to $6400 for the Toll Road Industrial Park. Cole Associates' proposal is for $2400 for both the Blackthorn and the Toll Road sites. The staff recommends that the Commission accept the proposal from Cole Associates, amending their proposal by RZ COMMISSION APPROVED THE FOURTH AMENDMENT TO LEASE WITH THE SOUTH BEND REDEVELOPMENT AUTHORITY (SBCDA PUBLIC IMPROVEMENT PROJECT) South Bend Redevelopment Commission Regular Meeting - January 15, 1993 6. NEW BUSINESS (Cont.) d. continued... deleting the reference to the Commission paying interest on outstanding bills. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission accepted the proposal from Cole Associates, as amended, for Phase I Environmental Assessment for Blackthorn Office Park and Toll Road Industrial Park in the Airport Economic Development Area. e. Commission approval requested for proposal from Economics Research Associates for professional services in the South Bend Central Development Area. Mr. Horton explained that the City is about to proceed with preparation for the long term financing for the College Football Hall of Fame. The long term financing will have several review processes. We think it will be important to have an independent feasibility analysis done by a respected firm, to assist all reviewing parties in making their decisions. The city has already prepared some projections, but, as the project has progressed, there are some other areas identified as potential sources of revenue that were not previously considered. This report will include those opportunities. Economics Research Associates is the best in its field. They have done feasibility analyses for Disney World, the Basketball Hall of Fame, the Grammy Hall of Fame, etc. The have a great deal of information -10- COMMISSION ACCEPTED THE PROPOSAL FROM COLE ASSOCIATES, AS AMENDED, FOR PHASE I ENVIRONMENTAL ASSESSMENT FOR BLACKTHORN OFFICE PARK AND TOLL ROAD INDUSTRIAL PARK IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - January 15, 1993 6. NEW BUSINESS (Cont.) e. continued... about halls of fame and how they perform, under what circumstances they perform better than others, and what we can do to make sure we capture the market potential that is there. The scope of of services in the proposal from Economics Reseearch Associates includes: develop assumptions regarding attendance, programming, marketing, staffing, initial capital investment, and periodic reinvestment. We are confident their report will be very positive for the community. In addition, we will be talking to them about spin -off opportunities such as a local economic impact study to assess the impact on tourism, additional convention opportunities, etc. We hope Economics Research Associates will help us quantify all of the opportunities the Hall of Fame present. The cost of the study is $32,000 plus an additional $8000 for reports, meetings and out of pocket expenses. Mr. Piasecki asked how long it would take to complete the study. Mr. Horton responsed that we expect to have a report in four to six weeks. -11- South Bend Redevelopment Commission Regular Meeting - January 15, 1993 6. NEW BUSINESS e. continued... Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved the proposal from Economics Research Associates for professional services in the South Bend Central Development area in the amount of $32,000 plus expenses. (College Football Hall of Fame) 7. PROGRESS REPORTS Mrs. Kolata reported that, in addition to the two proposals received January 4 for property in the Studebaker Corridor, we are talking to three other parties interested in land in the Studebaker Corridor and hope to be bringing those to the Commission before long. Mrs. Kolata also noted that the Policemen's Federal Credit Union is under construction and Real Services will break ground next week. Mrs. Kolata noted that Southold Restorations has been working with Memorial Hospital regarding homes that Memorial Hospital has purchased that they would like to move to Monroe Park. Also, Habitat for Humanity is in the process of rehabilitating a house on Rush Street. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for February 5, 1993 at 10:00 a.m. -12- COMMISSION APPROVED THE CONTRACT WITH ECONOMICS RESEARCH ASSOCIATES FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA IN THE AMOUNT OF $32,000 PLUS EXPENSES (COLLEGE FOOTBALL HALL OF FAME) PROGRESS REPORTS NEXT COMMISSION MEETING I South Bend Redevelopment Commission Regular Meeting - January 15, 1993 9. ADJOURNMENT There being no further business to come before ADJOURNMENT the Commission, Mr. Donoho made a motion that the meeting be adjourned. Mr. Piasecki econded the motion and the meeting was adjourned at 10:55 a.m. L� I L ./c1 Lj-t"C�� Paula N. Auburn, President -13- Ann E. Kolata, Director