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Home My WebLink AboutRM 02-05-93G Ln SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING February 5, 1993 10:00 a.m. Presiding Officer: Ms. Paula N. Auburn President I. 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 Members Absent: Mr. Michael Donoho Mr. Philip Faccenda Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann E. Kolata, Director Mrs. Cheryl Phipps, Office Manager Ms. Cleo Hickey, Economic Dev. Specialist Mr. Michael Beitzinger, Economic Dev. Specialist News Media: Mr. Don Porter, South Bend Tribune Mr. Thom Howell, U -93 Others: Mr. Carter Wolf, Center City Associates Ms. Debbie Leonard, Center City Associates Mr. Ken Allen, Watseka Theater Corp. Mr. Robert J. Kastens, Capitol Technologies Ms. Auburn announced that item 6.m. would be added to the agenda and considered at the beginning of New Business. 2. APPROVAL OF MINUTES a. Commission approval of Minutes of the Regular Meeting of January 15. 1993. -1- South Bend Redevelopment Commission Regular Meeting - February 5, 1993 2. APPROVAL OF MINUTES (Cont.) a. continued... Upon a motion by Mr. Piasecld, seconded by Mr. Sharp and unanimously carried, the Commission approved the Minutes of the Regular Meeting of January 15, 1993. 3. APPROVAL OF CLAIMS ADMIN 1993 Equipment Services South Bend Tribune National Assn. of Housing Officials BOMA East Race Printing Indiana University at South Bend United Construction Inc. %'''' Catering by Billie General Fund TOTAL ADMIN 1993 STUDEBAKER CORRIDOR BOND Cole Associates United Construction Bradberry Brothers Excavating B & J Excavation Specialty Systems of Illinois Warner & Sons Construction Code Enforcement Peirce & Associates TOTAL STUDEBAKER CORRIDOR BOND -2- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF JANUARY 15, 1993 $ 14.31 42.46 80.00 404.00 20.00 10.00 2,098.89 149.89 1.725.16 $ 4,544.07 $ 10,376.38 138.00 5,410.00 2,100.00 20,637.15 94,462.00 331.25 430.00 $ 133,884.78 South Bend Redevelopment Commission Regular Meeting - February 5, 1993 3. APPROVAL OF CLAIMS (Cont.) S.B.C.D.A. TIF - GENERAL ACCOUNT Bainbridge Bank Note Coopers & Lybrand Evensen Dodge, Inc. Banc One - Indianapolis TOTAL SBCDA TIF - GENERAL ACCT. BOND ANTICIPATION NOTE Girard Hilferty & Associates The Troyer Group, Inc. Municipal Consultants Baker & Daniels TOTAL BOND ANTICIPATION NOTE CW GRAND TOTAL Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried the Commission ratified claims paid prior to February 5, 1993 and approved Claims submitted February 5, 1993. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. m. Staff report on di=sition of Parcels C4 -16 and C4-17 in the South Bend Central Development Area. (State Theater) -3- $ 1,931.83 3,675.00 12,502.50 $ 2.000.00 $ 20,109.33 $ 314,310.14 31,767.00 10,000.00 31.658.11 $ 387,735.25 $ 550,817.50 COMMISSION RATIFIED CLAIMS PAID PRIOR TO FEBRUARY 5, 1993 AND APPROVED CLAIMS SUBMITTED FEBRUARY 5, 1993 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - February 5, 1993 6. NEW BUSINESS (Cont.) m. continued... Ms. Hickey reported that the Watseka Theater Corporation proposes to purchase the State Theater for the purpose of restoring and refurbishing it as an entertainment center. Jerry Jager is president of Watseka Theater Corp. Ken Allen is their agent. The projected project cost is $460,000. Mr. Jager will have an equity investment of $400,000 with CCA guaranteeing a bank loan for the remainder. The renovation will duplicate the original style as nearly as possible and will be completed within one year. They propose to provide a variety of entertainment at the theater, such as second run movies, live plays, and musical performances. The existing shops in the front of the theater will continue to be leased as retail or commercial space. Watseka Theater Corp. proposes to pay $20,000 for the building. Ms. Hickey noted that the Redevelopment Commission will retain an easement on the west facade of the building to maintain it. The Commission will also put some covenants in the deed, restricting the types of uses not allowed. We do not want controlled uses to ever be allowed on that property. Mrs. Kolata noted that Mr. Wolf and Ms. Hickey have spent considerable time looking at other projects that Watseka has done. They are all quality projects and we feel they are capable of completing this project as proposed. The staff recommends accepting their offer. -4- South Bend Redevelopment Commission Regular Meeting - February 5, 1993 6. NEW BUSINESS (Cont.) m. continued... Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved the Contract for Sale of Land to Watseka Theater Corporation for Parcels C4 -16 and C4 -17 in the South Bend Central Development Area (State Theater) and authorized the execution of related documents. a. Public Hearing on Resolution No 1129 a Supplemental Appropriation Resolution of the City of South Bend Redevelopment Commission. Mrs. Kolata asked to enter the proofs of publication into the record. The legal notice was published in the South Bend Tribune and Tri- County News on January S, 1993. There was no objection and the items were so entered. Mrs. Kolata explained that Resolution No. 1129 appropriates $52,000 from lease rentals generated in our downtown area for local improvements. The revenue coming in from the Palais Royale needs to be appropriated so we can make certain payments related to the building. Mrs. Manier noted that the closing on the Palais Royale took place after the 1993 budget had been approved. That is why this appropriation is necessary. From now on, the expenditure of funds for expenses related to the Palais will be built into the budget and this special appropriation will not be necessary. -5- COMMISSION APPROVED THE CONTRACT FOR SALE OF LAND TO WATSEKA THEATER CORPORATION FOR PARCELS C4 -16 AND C4 -17 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (STATE THEATER) AND AUTHORIZED THE EXECUTION OF RELATED DOCUMENTS South Bend Redevelopment Commission Regular Meeting - February 5, 1993 6. NEW BUSINESS (Cont.) a. continued... Ms. Auburn opened the Public Hearing for PUBLIC HEARING ON RESOLUTION whomever wished to speak. There was no one NO. 1129 who wished to speak concerning Resolution No. 1129. Ms. Auburn closed the Public Hearing. b. Commission approvuested for Resolution No. 1129. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1129, a Supplemental Appropriation Resolution for the City of South Bend Redevelopment Commission c. Staff report on acquisition of p MM in the West Washington - Chapin Development Area. Mrs. Kolata noted that the staff sent a purchase offer to Mr. Bivens at 306 South Chapin in the amount of $11,250. It is a twelve room house. Mr. Bivens has made a $17,000 counter offer. Based on comparables, the staff recommends accepting the counter offer. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission accepted the counter offer of $17,000 for property located at 306 South Chapin Street in the West Washington - Chapin Development Area. d. Commission approval requested for Resolution No 1130 approving an application for ptrional property tax deduction for propgrty located at ffa COMMISSION APPROVED RESOLUTION NO. 1129, A SUPPLEMENTAL APPROPRIATION RESOLUTION FOR THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION COMMISSION ACCEPTED THE COUNTER OFFER OF $17,000 FOR PROPERTY LOCATED AT 306 SOUTH CHAPIN STREET IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - February 5, 1993 6. NEW BUSINESS (Cont.) d. continued... 3615 W. Voorde Drive in the Airport Economic Development Area, Mr. Beitzinger read the staff report on the project. Capitol Technologies is a manufacturer of special industrial machinery along with dies and fixtures. Their project calls for the purchase and installation of new CNC boring mills, lathes, machining centers and an enhanced computer system. The project will make Capitol Technologies a world class machine and tool builder and a truly automated equipment manufacturer. The total cost of the project is estimated at $1,275,000. The project will create twenty (20) new permanent full -time jobs, representing an annual payroll of $800,000 and will maintain one hundred twenty -four (124) existing permanent full-time and part-tune jobs with an annual payroll of $5,200,000. Capitol Technologies has not applied for, nor received, any previous tax abatement consideration. 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 which is a Incremental Financing Allocation Area. Capitol Technologies qualifies for five years of personal property tax abatement under the Tax Abatement Ordinance. Without abatement, the project would generate approximately $116,618 in new taxes. With abatement, the taxes would be approximately -7- South Bend Redevelopment Commission Regular Meeting - February 5, 1993 6. NEW BUSINESS (Cont.) d. continued... $20,679. Therefore, the cost of the abatement is approximately $95,939 over the five year period. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1130 approving an application for personal property tax deduction for property located at 3615 W. Voorde Drive in the Airport Economic Development Area. (Capitol Technologies, Inc.) e. Commission aDDroval requested for Resolution No. 1131 determining to pay certain expenses incurred for local public unprovements 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) SpecW Fund. Mrs. Kolata explained that Resolution No. 1131 sets a public hearing on the appropriation of $300,000 for local public improvements. The public hearing on this appropriation will be at the next Commission meeting on February 19, 1993 at 10:00 a.m. The resolution states that the funds are currently available within the South Bend Central Development Area. Our financial advisor has declared that such an expenditure will not endanger the interests of any bond holders. Mrs. Kolata explained that the funds would be used to pay for certain types of eligible expenses throughout the year. One of those expenses is the remainder of the fee for the architect for the Hall of Fame. Most of the money for the COMMISSION APPROVED RESOLUTION NO. 1130 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3615 W. VOORDE DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (CAPITOL TECHNOLOGIES, INC.) South Bend Redevelopment Commission Regular Meeting - February 5, 1993 6. NEW BUSD SS (Cont.) e. continued... architect has come from the City of South Bend, but approximately $163,00 has not yet been funded. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1131 determining to pay certain expenses incurred for local public improvements in or serving the South Bend Central Allocation Area (South Bend Allocation Area No. IA) from the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) Special Fund. f. Commission NWroval requested for Resolution fW No. 1133 approving the Second Amendment to Lease with the St. 7osenh Coup , Airport Authority and the South Bend Redevelopment Authori Ms. Manier explained that this resolution makes some administrative changes to the Airport 2010 Taxable and Tax Exempt Lease. The changes are: 1) establishing a commencement date of August 1, 1990 for that lease; 2) establishing a mechanism allowing for the sale of some of the lots purchased with bond proceeds; 3) includes the acquisition of four lots in the Toll Road Industrial Park; 4) includes the engineering and construction work for the roadway to service the Accuride property; 5) includes redesign work on Old Cleveland Road; and 6) includes design of the access road to the City's sludge farm. The other terms and conditions of the Lease remain the same. In COMMISSION APPROVED RESOLUTION NO. 1131 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 - February 5, 1993 6. NEW BUSINESS (Cont.) continued... Mrs. Kolata noted that determining a way to sell land in the corporate park was a significant achievement. We thought we would be limited to conveying the land by way of lease /purchase. Thanks to our attorney, Ms. Manier, and bond counsel, we have found that we can defease bonds as lots are sold. That will make marketing the land easier. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1133 approving the Second Amendment to Lease with the St. Joseph County Airport Authority and the South Bend Redevelopment Authority. g. Commission 40roval requested for Resolution No 1134 improving the Fair Reuse Value of property in the South Bend Central Development Area. (Parcel 3 -1) Item 6.g. was tabled. h. Commission approval requested for Bid Specifications and Design Considerations for Parcel 3 -1 in the South Bend Central Development Area. Item 6.h. was tabled. i. Commission approval requested to publish Notice of Intended Sale of Property in the South Bend Central Development Area with publication dates to be February 12 and FebnhiZ 19 1993 and receipt of bids to be at 10:00 a.m. on March 5, 1993. (Parcel 3 -1) -10- COMMISSION APPROVED RESOLUTION NO. 1133 APPROVING THE SECOND AMENDMENT TO LEASE WITH THE ST. JOSEPH COUNTY AIRPORT AUTHORITY AND THE SOUTH BEND REDEVELOPMENT AUTHORITY ITEM 6.G. WAS TABLED ITEM 6.H. WAS TABLED South Bend Redevelopment Commission Regular Meeting - February 5, 1993 6. NEW BUSINESS (Cont.) i. continued... Item 61 was tabled. j. Commission authorization requested for use of St. Joseph&Une Parking Facility on June 5. 1993. Mrs. Kolata noted that Community Affairs has asked to use the St. Joseph/Wayne Parking Facility for the 18th Annual World's Largest Garage Sale on June 5. The St. Joseph/Wayne Garage provides about 50 additional spaces to lease as booths. Also, the layout of the garage provides better exposure for the vendors and a better flow of people. We will work with Community Affairs both before and after the garage sale to make sure the facility is left in the condition it is presently in. rrEM 6.I. WAS TABLED Upon a motion by Mr. Piasecki, seconded by COMMISSION APPROVED THE USE OF Mr. Sharp and unanimously carried, the THE ST. JOSEPH/WAYNE PARIGNG Commission approved the use of the St. FACILITY FOR THE WORLD'S LARGEST Joseph/Wayne Parking Facility for the World's GARAGE SALE ON JUNE 5, 1993 Largest Garage Sale on June 5, 1993. k. Staff report on diMsition of property in the Studebaker Corridor Develoument Area. Mrs. Kolata noted that there are two properties requiring Commission action. The first is a bid from Gunther W. Jordan Corporation for Disposition Parcel 15, located at Lafayette and Stull Streets. The minimum offering price was $3,650. The bid is in the amount of $2,690. The want to use the land for building expansion and extra parking. The staff recommends accepting the offer. -11- South Bend Redevelopment Commission Regular Meeting - February 5, 1993 6. NEW BUSINESS (Cont.) k. continued... Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission accepted the proposal from Gunther W. Jordan Corporation in the amount of $2,690 for Disposition Parcel 15 in the Studebaker Corridor Development Area. The second proposal is from Omega Properties in the amount of $5,000 for Disposition Parcel 4. The parcel was put up for bid last fall but we did not receive any bids at that time. The minimum offering price at the time was $14,100. Omega Properties is closely related to Murdock and Sons Construction. They plan to construct a 3,200 square foot vehicle maintenance building and 13,000 square foot equipment storage yard office building. They may also build an office building for their construction company some time in the future. They will build the vehicle maintenance building within 180 days and the equipment storage and yard office building within 300 days. They will complete the fencing and landscaping within 360 days. They are tying their schedule to a request to the city to vacate two alleys and relocate the electric and telephone lines that are above the alley. They also want the City to tear out existing sidewalk and curbs and replace the curbs with up to four curb cuts. They have also asked us to provide adequate street lighting for the block. The staff recognizes the commitment that Murdock Construction and Omega Properties has made to the Studebaker Corridor and recommends accepting the proposal. -12- COMMISSION ACCEPTED THE PROPOSAL FROM GUNTHER W. JORDAN CORPORATION IN THE AMOUNT OF $2,690 FOR DISPOSITION PARCEL 15 IN THE STUDEBAKER CORRIDOR DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - February 5, 1993 6. NEW BUSINESS (Cont.) k. continued... Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission accepted the proposal from Omega Properties in the amount of $5,000 for Disposition Parcel 4 in the Studebaker Corridor Development Area. 1. Commission approval requested for D=sal from Peggy Forrest for professional services. Mrs. Kolata noted that Peggy Forrest is a realtor from South Bend who has worked part time for our office on occasion. We have approximately 38 review appraisals which we do not have the staff time to do. Peggy has proposed to do the review appraisals for a cost of $60 each. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission accepted the proposal from Peggy Forrest to do review appraisals for a cost of $60 per appraisal, not to exceed 61 appraisals. 7. PROGRESS REPORTS COMMISSION ACCEPTED THE PROPOSAL FROM OMEGA PROPERTIES IN THE AMOUNT OF $5,000 FOR DISPOSITION PARCEL 4 IN THE STUDEBAI(ER CORRIDOR DEVELOPMENT AREA COMMISSION ACCEPTED THE PROPOSAL FROM PEGGY FORREST TO DO REVIEW APPRAISALS FOR A COST OF $60 PER APPRAISAL, NOT TO EXCEED 61 APPRAISALS Mrs. Kolata reported that there is a lot of interest in PROGRESS REPORTS the Studebaker Corridor property. We have at least four active prospects with whom we are working. We are also working with a couple of prospects for the Toll Road Industrial Park. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for February 19, 1993 at 10:00 a.m. -13- NEXT COMMISSION MEETING a South Bend Redevelopment Commission Regular Meeting - February 5, 1993 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Piasecid made a motion that the meeting be adjourned. Mr. Sharp seconded the motion and the meeting was adjourned at 10:55 a.m. Paula N. Auburn, President -14- Ann E. Kolata, Director