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HomeMy WebLinkAboutRM 02-19-93�101111:80:40 114NUM VASWINRA, 0 k 1k I February 19, 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 Mr. Michael Donoho Members Absent: Mr. Philip J. Faccenda Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann E. Kolata, Director Mrs. Cheryl Phipps, Office Manager Mr. Tom Eddington, Economic Dev. Specialist Mr. Mike Beitzinger, Economic Dev. Specialist Bureau of Housing Staff. News Media: Others: Ms. Mary Richmond, Assistant Director Mr. Don Porter, South Bend Tribune Mr. Thom Howell, U -93 Mr. Carter Wolf, Center City Associates Mr. Ernest Szarwark, Barnes & Thornburg 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. A Wroval of Minutes of the Regular Meeting of February 5. 1993. 50 South Bend Redevelopment Commission Regular Meeting - February 19, 1993 2. APPROVAL OF MINUTES (Cont.) a. continued... Upon a motion by Mr. Piasec1d, seconded COMMISSION APPROVED THE by Mr. Sharp and unanimously carried, the MATES OF THE REGULAR Commission approved the Minutes of the MEETING OF FEBRUARY 5, 1993 Regular Meeting of February, 5, 1993. 3. APPROVAL OF CLAIMS • 11 South Bend Tribune 24.00 South Bend Tribune 222.00 Recorders Office 24.00 James Riggs 30.09 Tri- County News 13.08 Gas Consumption Equipment Service 27.75 South Bend Drafting 17.40 Commercial Office Products 2,406.50 Global Computer Supplies 54.00 Global Computer Supplies 199.00 Holladay Corporation 515.00 Recorders Office 65.00 Visible Computer Supplies 49.99 YWCA 930.00 TOTAL ADMIN 1993 $ 4,591.85 Code Enforcement $ 1,299.00 Tri-County News 40.67 Bradberry Brothers 2,500.00 Peirce Associates 250.00 TOTAL STUDEBAKER CORRIDOR BOND $ 4,089.67 -2- South Bend Redevelopment Commission Regular Meeting - February 19, 1993 3. APPROVAL OF CLAIms (font.) Evensen Dodge $35,588.97 Real Estate Management Corp. 1,678.43 Real Estate Management Corp. 223.75 Real Estate Management Corp. 491.74 Real Estate Management Corp. 628.77 Real Estate Management Corp. 459.63 Real Estate Management Corp. 487.52 Real Estate Management Corp. 336.61 Real Estate Management Corp. 281.11 Real Estate Management Corp. 305.61 Real Estate Management Corp. 422.80 Real Estate Management Corp. 645.48 Real Estate Management Corp. 379.97 Real Estate Management Corp. 416.82 Real Estate Management Corp. 679.33 Real Estate Management Corp. 422.01 Real Estate Management Corp. 515.71 TOTAL S.B.C.D.A. TIF $43,966.26 Indiana Bond Bank $ 275.00 TOTAL BOND ANTICIPATION NOTE $ 275.00 GRAND TOTAL $ 52.922.78 Upon a motion by Mr. Piasecki, seconded by COMMISSION APPROVED Mr. Donoho and unanimously carried, the CLAIMS SUBMITTED Commission approved the Claims submitted FEBRUARY 19, 1993 February 19, 1993. -3- South Bend Redevelopment Commission Regular Meeting - February 19, 1993 4. COMMUNICATIONS There were no Communications. THIRE WERE NO COMMUNICATIONS OLD BUSINESS a. Commission ,Vq Q Resolution No. 1134 agaEmLmg the Building) Reuse Value of RaWaty in the South Centml PmmjQ== Area, (Opelika Mrs. Kolata noted that Resolution No. 1134 establishes the Reuse Value of the Opelika Building as $305,000. The site is approximately 1.4998 acres. The proposed reuse would be office, retail, residential, or CW any combination of those. Item 6.b. sets design considerations for the site, including either reuse or demolition of the building; two-story minimum height; site parking must be made available to the public on evenings, weekends and holidays; and vehicle access to the fish ladder must be maintained. Mrs. Kolata noted that the bid specifications also state that the highest priority for this area is multifamily residential development, but consideration will be given to mixed use or compatible commercial development proposals. Mrs. Kolata noted that we have had interest expressed in the site. Item 6.c. sets publication dates for advertising as February 26 and March 5 -4- South Bend Redevelopment Commission Regular Meeting - February 19, 1993 a. continued... and receipt of bids at 10:00 on March 19, 1993. There was some discussion about whether we should limit our proposals to multi- family residential development. Mrs. Kolata responded that, though our highest priority for the site is residential, we didn't want to rule out other proposals at this point. If we get more than one proposal we will weigh them against all specifications, including our preference for residential. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1134 approving the Fair Reuse Value of Property in the South Bend Central Development Area. (Opelika Building) b. Commission aunroval requested for Bid Specifications and Design Considerations for Parcel 3 -1 in the South Bend Central Development Area. (Opelika Building) Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Bid Specifications and Design Considerations for Parcel 3 -1 in the South Bend Central Development Area. (Opelika Building) -5- COMMISSION APPROVED RESOLUTION NO. 1134 APPROVING THE FAIR REUSE VALUE OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (OPELIKA BUILDING) COMMISSION APPROVED THE BID SPECIFICATIONS AND DESIGN CONSIDERATIONS FOR PARCEL 3 -1 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (OPELIKA BUILDING) South Bend Redevelopment Commission Regular Meeting - February 19, 1993 6. OLD BUSINESS (Cont.) MO. 1- i- 1 ,. •. 1 S I '• j1, 1 1 1 1 1 (Parcel 3 -1) Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission authorized publication of the Notice of Intended Sale of Property in the South Bend Central Development Area with publication dates to be February 26 and March 5, 1993 and receipt of bids to be at 10:00 a.m. on March 19, 1993. (Parcel 3 -1) 1 �---1WIW a. Public I' on Resolution 1 I l3k, = 11 1_ AWEWfiafign Resolution 1 the , of South :'11 Commis 11 Mrs. Kolata explained that Resolution No. 1132 appropriates $300,000 of tax increment money from the South Bend Central Development Area to be used for eligible redevelopment activities within the area. We know of an expense in the amount of $163,000 for the architect for the Morris Performing Arts Center. Other types of expenditures which we may fund with this appropriation are smaller costs associated with our projects in the South Bend Central Development Area, such as W COMMISSION AUTHORIZED PUBLICATION OF THE NOTICE OF INTENDED SALE OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA WITH PUBLICATION DATES TO BE FEBRUARY 26 AND MARCH 5, 1993 AND RECEIPT OF BIDS TO BE AT 10:00 ON MARCH 19, 1993 South Bend Redevelopment Commission Regular Meeting - February 19, 1993 6. NEW BUSINESS (Cont.) a. continued... paying for the contract (to be considered later on the agenda) with Ken Herceg for fire escape design for the State Theater. Mrs. Kolata noted that Notice of the Public Hearing was published in the South Bend Tribune and in the Tri- County News on February 5. We have received the proofs of publication from both newspapers. Ms. Auburn opened the Public Hearing. There was no one who wished to speak concerning Resolution No. 1132. Ms. Auburn closed the Public Hearing for whatever action the Commission desired to take. b. Commission =royal • Resolution No. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1132, a Supplemental Appropriation Resolution of the City of South Bend Redevelopment Commission. Ms. Richmond noted that the Dubail property was rehabilitated with Rental Rehab funds and the owner wishes to -7- PUBLIC HEARING ON RESOLUTION NO. 1132 COMMISSION APPROVED RESOLUTION NO. 1132, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION South Bend Redevelopment Commission Regular Meeting - February 19, 1993 c. continued... convert the construction loan to a mortgage. The bank requires their loan to be in first position and we routinely subordinate the Rental Rehab loan to the mortgage. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved the Subordination Agreement with Independence One Mortgage Corporation for property located at 1347 E. Dubail. d. Commission ratification requested for Release (a) of Mortgage to East Corby Partners Mrs. Kolata noted that Ms. Richmond had sent over the Releases of Mortgage for East Corby Partnership requesting that they be signed by the Commission because the loans had been paid off. We had them signed and then realized that they should have been placed on a Commission agenda and approved before execution. This ratification corrects that error. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission ratified the Releases of Mortgage to East Corby Partnership. e. Staff EWgA on diMsition gEQWM in the Studebaker Corridor Dev COMMISSION APPROVED THE SUBORDINATION AGREEMENT WITH INDEPENDENCE ONE MORTGAGE CORPORATION FOR PROPERTY LOCATED AT 1347 E. DUBAIL COMMISSION RATIFIED THE RELEASES OF MORTGAGE TO EAST CORBY PARTNERSHIP South Bend Redevelopment Commission Regular Meeting - February 19, 1993 6. NEW BUSINESS (Cont.) e. continued... Mrs. Kolata noted that on January 4, 1993 Devlin Properties submitted a bid in the amount of $88,500 for Parcel 11 in the Studebaker Corridor Development Area. But, because of some conditions placed on the bid, it did not meet the minimum offering price for the property. The conditions placed on the bid were: vacation of alleys, relocation of utilities, City installation of new curbs and sidewalks, receipt of favorable phase I environmental assessment, City removal of all debris, building foundations, concrete slabs, stairs and residential sidewalks from the property, and clearance of the site except for perimeter trees. We have been negotiating with the principals of Devlin Properties and have provided them with a copy of the Phase I environmental assessment. The Common Council has vacated the alleys on the block. Devlin Properties has agreed to assume financial responsibility for all other conditions in their bid, but have revised their offering price to $45,500. Devlin Properties is the owner of Alcon Building Products, presently located at 1702 S. Franklin Street. They propose to construct a 42,400 square foot building to be occupied by Alcon Building Products. The building will contain approximately 4,800 square feet of office space and 37,600 square feet of warehouse space. 93 South Bend Redevelopment Commission Regular Meeting - February 19, 1993 6. NEW BUSINESS (Cont.) e. continued... They presently employ 20 people and expect to increase employment by three to four additional employees. They expect to begin construction within 30 days of closing on the land and complete construction within six months. We think this is an excellent project and recommend accepting the proposal at the $45,500 price. Mr. Donoho asked how we will be able to ensure the new curbs are installed. Mrs. Kolata responded that that requirement will ow be included in the Contract for Sale of Land and we have rights under the Contract to retake the land if the Contract is not fulfilled. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the revised proposal in the amount of $45,500 from Devlin Properties for Disposition Parcel 11 in the Studebaker Corridor Development Area. L Commission =royal requested for Resolution No 1135 avurovine an lication for real Fey tax deduction for ply located at 119 West Wayne Street in the South Bend Central Development Area. (Coyne Investments, L.P.) -10- COMMISSION APPROVED THE REVISED PROPOSAL IN THE AMOUNT OF $45,500 FROM DEVLIN PROPERTIES FOR DISPOSITION PARCEL I I IN THE STUDEBAKER CORRIDOR DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - February 19, 1993 6. NEW BUSINESS (Cont.) L continued... Mr. Beitzinger read the staff report on the project. Coyne Investments proposes to renovate the parking garage at the corner of Main and Wayne Streets. Rehabilitation efforts include structural support repair and replacement, replacement of light fixtures, patching and repairing the stalls, and repair or replacement of the two elevators servicing the building. They feel that the project is critical in order to extend the useful life of the parking garage as a valued and necessary parking facility for downtown office buildings. The total projected cost of the renovations is $750,000. The project will not create any new jobs, but will maintain two existing permanent full time jobs and two existing permanent part time jobs with an annual payroll of $33,300. Coyne Investments has not received any previous tax abatement. The property is properly zoned for the proposed use. The property is located in an Economic Development Target Area and a Tax Abatement Impact Area. It is also in a Tax Incremental Financing Allocation Area. Mr. Beitzinger noted that the project does not qualify for tax abatement under the Tax Abatement Ordinance, but has requested special consideration and a ten year -11- South Bend Redevelopment Commission Regular Meeting - February 19, 1993 6. NEW BUSE40S (Cont.) L continued... abatement. Their justification is as follows: They feel that this parking garage is important to the growth and development of the downtown. Downtown development continues to take over space presently used for parking, and requires additional parking to support the new development. Additionally, any possibility of reusing the former Robertson's Building would be enhanced by its connection to the garage. Closure of the garage would exacerbate downtown parking, deter people from coming downtown, and inhibit further rw development. Assuming a base assessed value of one- third of the project cost, new taxes on the project are estimated to be approximately $353,603. With a ten -year abatement, taxes are estimated to be approximately $178,569. Therefore the cost of a ten -year abatement would be approximately $175,033. Abatement schedules for a six and three -year abatement were also provided. Mr. Szarwark noted that the garage was not properly maintained under its former owners and is experiencing some severe structural defects. Although there is no immediate danger, if the repairs are not begun soon, the garage will have to closed. Mr. Sharp asked why Coyne Investments felt it deserved a ten -year abatement. Mr. -12- South Bend Redevelopment Commission Regular Meeting - February 19, 1993 6. NEW BUSINESS (Cont.) L continued... Szarwark responded that the project will last more than ten years after renovation. The $750,000 investment is well over the $100,000 requirement established by the ordinance for a ten -year abatement. Mr. Donoho asked if the project would go forward without abatement. Mr. Szarwark did not know the answer to that question. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1135 approving an application for ten years of real property tax deduction for property located at 119 West Wayne Street in the South Bend Central Development Area. g. Commission approval requested for Resolution No. 1136 approving the execution of Termination of Sublease with the C4 of South Bend. (SBCDA Public Improvement Project) Mrs. Kolata noted that item 6.g. and 6.h. are both related to the transfer of land to Southhold Restorations in order to move a house owned by Memorial Hospital to South Street in Monroe Park. Resolution No. 1136 terminates the Commission's lease with the Board of Public Works for the property transferred to Southhold Restorations. Resolution No. 1137 amends the lease for the 1990 Lease /Rental Bonds -13- COMMISSION APPROVED RESOLUTION NO. 1135 APPROVING AN APPLICATION FOR TEN YEARS OF REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 119 WEST WAYNE STREET IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - February 19, 1993 6. NEW BUSINESS (Cont.) g. continued... to reflect the fact that that property is no longer under the lease or the bond. Upon a motion by Mr. Sharp, seconded by COMMISSION APPROVED Mr. Piaseel i and unanimously carried, the RESOLUTION NO. 1136 Commission approved Resolution No. 1136 APPROVING EXECUTION OF approving the execution of the Termination THE TERMINATION OF of Sublease with the City of South Bend. SUBLEASE WITH THE CITY OF (SBCDA Public Improvement Project) SOUTH BEND (SBCDA PUBLIC IMPROVEMENT PROJECT) h. Commission approval requested for Resolution No 1137 approving a Fifth Amendment to Lease with the Aft Redevelopment Authority for pr�p�rty ated locin the South Bend Central Development Area. (SBCDA Public Improvement Project) Upon a motion by Mr. Piasecld, seconded COMMISSION APPROVED by Mr. Sharp and unanimously carried, the RESOLUTION NO. 1137 Commission approved Resolution No. 1137 APPROVING A FIFTH approving a Fifth Amendment to Lease AMENDMENT TO LEASE WITH with the Redevelopment Authority for THE REDEVELOPMENT property located in the South Bend Central AUTHORITY FOR PROPERTY LOCATED IN THE SOUTH BEND Development Area. (SBCDA Public CENTRAL DEVELOPMENT Improvement Project) AREA (SBCDA PUBLIC IMPROVEMENT PROJECT i. Commission approval requested for Resolution No. 1138 changing the base assessment date for pr�pgi y in the West Washin on -C in Development Area. Mrs. Kolata noted that, as a result of the 1989 reassessment, the West Washington TTF area has a negative tax increment -14- South Bend Redevelopment Commission Regular Meeting - February 19, 1993 6. NEW BUSINESS (Cont.) i. continued... assessed value of over $1,000,000. Therefore, it would take a long time and a lot of development to get to the point of seeing increment available to use in the area. We are allowed to change the base date for the allocation area which was set when the TIF district was originally established. We want to change the base assessment date to March 1, 1992. It will also have to be approved by the Area Plan Commission and the Common Council before the Commission can act on a confirming resolution. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1138 changing the base assessment date for property in the West Washington - Chapin Development Area. 1 11 I I 1 1 , IJ Bits iil i�l 1 11111.1_, �. 1111'1 1I� �• •,1 1 I I I 1 _ 1 1 1 1�1 1 Mi ..11 1 �1 Mrs. Kolata noted that this is the yearly contract for Community Development Block Grant funds to be used for administering redevelopment programs. The contract runs from January 1, 1993 to December 31, 1993 and is in the amount of $130,400. That amount is about one -third of the administrative budget for the -15- COMARSSION APPROVED RESOLUTION NO. 1138 CHANGING THE BASE ASSESSMENT DATE FOR PROPERTY IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - February 19, 1993 A!'-. 1 I j. continued... Division of Redevelopment. The other two - thirds is funded by the City of South Bend. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Community Development Contract (CD93 -601) in the amount of $130,400 for Redevelopment Administration for 1993. k. Commission :. I) / / mgMested for for Mf&ssional the South 1 Central PoLftment Mrs. Kolata noted that Ken Herceg has proposed to design a fire escape for the State Theater at an hourly rate for a cost not to exceed $5,000. When we sold the State Theater, we agreed to design the fire escape. The plans for it have to be approved down state. Watseka will pay for the construction of it. The contract also provides for construction management for a cost not to exceed $2,000. Ms. Auburn declared a conflict of interest on this item. -16- COMMISSION APPROVED THE COMMUNITY DEVELOPMENT CONTRACT (CD93 -601) IN THE AMOUNT OF $130,400 FOR REDEVELOPMENT ADMINISTRATION FOR 1993 South Bend Redevelopment Commission Regular Meeting - February 19, 1993 6. NEW BUSINESS (Cont.) k. continued... Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved the proposal from Ken Herceg and Associates for design and construction management for a fire escape for the State Theater at a cost not to COMMISSION APPROVED THE PROPOSAL FROM KEN HERCEG AND ASSOCIATES FOR DESIGN AND CONSTRUCTION MANAGEMENT FOR A FIRE ESCAPE FOR THE STATE THEATER AT A COST NOT TO exceed $7,000. Ms. Auburn did not vote. EXCEED $7,000 ..•�.. 1 • Mrs. Kolata reported that we have closed on PROGRESS REPORTS the State Theater. The coverage in the South Bend Tribune was very nice. Mrs. Kolata passed out to the Commissioners copies of the proposed design guidelines for all of our redevelopment areas. They will be compiled into one booklet for easy reference for all who need to use them. Mrs. Kolata asked that the Commissioners review them and get comments back to the staff by February 26 so that a final document can be adopted by the Commission on March S. The next Regular Meeting of the NEXT COMMISSION MEETING Redevelopment Commission is scheduled for March 5, 1993 at 10:00 a.m. -17- South Bend Redevelopment Commission Regular Meeting - February 19, 1993 There being no further business to come before the Redevelopment Commission, Mr. Piasecl i made a motion that the meeting be adjourned. Mr. Donoho seconded the motion and the meeting was adjourned at 11:37 a.m. Paula N. Auburn, President -18- ADJOURNMENT Ann E. Kolata, Director