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HomeMy WebLinkAboutRM 04-16-930 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING April 16, 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. Michael Donoho Mr. Philip J. Faccenda Members Absent: Mr. Theo F. Sharp, Secretary Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann E. Kolata, Director Mrs. Cheryl Phipps, Office Manager Mr. Larry Magliozzi, Planner Mr. Tim Kabat, Planner Mr. Marco Marian, Planner Mr. Gabriel Okafor, Economic Dev. Specialist Mr. Matt Carpenter, Economic Dev. Specialist Ms. Hedy Robinson, Economic Dev. Specialist Mr. James Riggs, Economic Dev. Specialist Mr. Jon Hunt, Executive Director News Media: Mr. Don Porter, South Bend Tribune Mr. Thom Howell, U -93 Others: Mr. Carter Wolf, Center City Associates Ms. Auburn announced that the Executive Session held prior to the meeting will be continued following adjournment of the Regular Meeting. -1- South Bend Redevelopment Commission SW Regular Meeting - April 16, 1993 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Apri12. 1993. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, April 2, 1993. 3. APPROVAL OF CLAIMS Claims Submitted April 16, 1993 for Approval COMMSSION APPROVED THE AIMUTES OF THE REGULAR MEETING OF FRIDAY, APRIL 2, 1993 ADMIN 1993 Federal Express $ 41.00 Gene's Camera Shop 17.90 Petty Cash 98.64 South Bend Tribune 145.16 ADT Security 58.00 United Construction 39.50 Corporate Staffmg 360.00 Daytimer 25.00 Kinko's National 29.80 Tri County News 69.16 United Parcel Service 15.25 Equipment Services 33.03 East Race Printing 43.80 St. Joseph County Recorder 39.00 Sign & Display Industry Fund 74.00 TOTAL ADMIN 1993 $ 1,089.24 S.B.C.D.A. TIF - GENERAL ACCOUNT Panzica Architects $ 1.500.00 TOTAL S.B.C.D.A. TIF - GENERAL ACCOUNT $ 1,500.00 BOND ANTICIPATION NOTE Gerard Hilferry $ 80, 640.00 The Troyer Group 112,148.00 TOTAL BOND ANTICIPATION NOTE $ 192,788.00 -2- South Bend Redevelopment Commission Regular Meeting - April 16, 1993 2. APPROVAL OF CLAIMS (Cont.) STUDEBAKER CORRIDOR St. Joseph County Treasurer $ 607.62 TOTAL STUDEBAKER CORRIDOR $ 607.62 FUND 420 - DIRECT EXPENDITURE Real Estate Management $ 973.50 Howard Park Hardware 11.41 Indiana Bell 55.61 Indiana Michigan Power Co. 750.18 NIPSCO 509.68 South Bend Water Works 134.03 Envirocorp 750.00 Watseka Theatre Corp. 2,000.00 TOTAL FUND 420 - DIRECT EXPENDITURE $ 5,184.41 GRAND TOTAL $ 201,169.27 Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Claims submitted April 16, 1993. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. �. a. Receipt of bids for Blackthorn Corporate Center Lots 1. 2, and 4 in the Airport Economic Development Area. -3- COMMISSION APPROVED THE CLAIMS SUBMITTED APRIL 16, 1993 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - April 16, 1993 6. NEW BUSINESS (Cont.) a. continued... Mrs. Kolata noted that there were no bids received for these lots by 10:00 a.m., April 16. We did not expect to have any bids, but this fulfills the requirements for offering property for sale through the public bidding process. We may now negotiate with any interested parties. b. Receipt of bids for Parcel Mll -16 in the South Bend Central Development Area. (611 S. Clinton) Mrs. Kolata noted that there were no bids received for these lots by 10:00 a.m., April 16. We did not expect to have any bids, but this ANN fulfills the requirements for offering property for sale through the public bidding process. We may now negotiate with any interested parties. c. Commission approval requested for Resolution No. 1151 desi ng ating Development Area. the Sample -Ewing declaring the Sample -Ewing Dm&lapment Area to be blighted. =roving a Development Plan and conditions under which relocation payments establishing an Allocation will be made. Area and for purposes of Tax Incremental Financing. Mr. Magliozzi explained the Sample -Ewing Development Plan. The new development area combines two existing development areas, the Studebaker Corridor Development Area and the Rum Village Industrial Park, with adjacent residential areas to their east to create the Sample -Ewing Development Area. The new development area is approximately 2,400 acres. It is sub - divided in:c five sub -areas for planning -4- NO BIDS WERE RECEIVED FOR BLACKTHORN CORPORATE CENTER LOTS 1, 2, AND 4 IN THE AIRPORT ECONOMIC DEVELOMENT AREA NO BIDS WERE RECEIVED FOR PARCEL Mll -16 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (611 S. CLINTON) South Bend Redevelopment Commission Regular Meeting - April 16, 1993 6. NEW BUSINESS (Cont.) c. continued... purposes: the Rum Village Industrial District, the Studebaker Corridor, the Indiana - Sample Industrial Corridor, Rum Village Neighborhood, and the Southeast Neighborhood. Mr. Magliozzi pointed out that the Southeast Neighborhood and the Rum Village Neighborhood are tY.e oldest neighborhoods in South Bend. They originally housed the employees of the businesses located in the large industrial areas. The commercial areas along Indiana Avenue and Main and Michigan Streets developed logically between the workers homes and employment. With the demise of Oliver Chilled Plow, Studebaker, and White Farm, the neighborhoods declined dramatically, especially the Southeast Neighborhood. There has been a significant drop in the number of housing units as well as in the value of the housing. With the decline in the neighborhoods, the commercial area also declined. There are many abandoned or under - utilized industrial buildings in the Studebaker Corridor and the Rum Village Industrial Park has never fully developed to its potential because of unstable soil. Mr. Magliozzi noted that there are several impediments to development in these areas: 1) large vacant, abandoned buildings in the Studebaker Corridor which must be torn down; 2) the muck in the Rum Village Industrial Park which must be removed to make that land usable; 3) accelerated neighborhood decline in the Southeast Neighborhood; 4) the beginning of deterioration in the Rum Village Neighborhood which needs to be stopped; and 5) the -5- South Bend Redevelopment Commission Regular Meeting - April 16, 1993 6. NEW BUSINESS (Cont.) c. continued... deteriorated commercial areas along Indiana Avenue in particular. The transportation network, consisting of Michigan/Main Streets, Sample Street, Ewing, and State Road 23 is a unifying factor. It will be key to making this area attractive for redevelopment. There is also excellent railroad coverage in this area, although much of it has been abandoned. The development plan has a three -fold purpose: 1) to establish a vision and strategy for redevelopment, revitalization, improvement, and preservation of this area; 2) to merge two existing redevelopment areas and tax incremental allocation areas; and 3) to establish a framework for a detailed planning program that involves the residents, the businesses, the civic and institutional partners for each of the sub -areas mentioned earlier. We have outlined several strategies for addressing the needs in this area. The public sector must provide investment to be the catalyst for redevelopment. Social, economic, physical, and organizational issues will be planned together. Public funds must be leveraged to encourage private development. There must be development of private sector leadership. The objectives of this project are: to increase tax base, increase investment in this area, stabilize various sections of the area, revitalize various sections, strengthen the two oldest neighborhoods in South Bend, create a public- M South Bend Redevelopment Commission Regular Meeting - April 16, 1993 6. NEW BUSINESS (Cont.) c. continued... private organizational network that will help establish this area through time, establish strong, unifying and structural urban design guidelines, increase the level of private investment, retain and increase jobs, and generate funding sources. Activities have been divided into two types: fiscal and social/financial. The fiscal activities include architectural, engineering, survey, appraisal, soil testing, acquisition and relocation, site clearance, site assemblage, rehab, disposition, and public works. The anticipated social/financial activities include housing rehab, homeowner assistance, business assistance, and job match assistance. The five sub -areas have been subdivided into sectors for planning purposes. The primary goal for the north sector of the Southeast sub -area is redevelopment. There are very few homes left and IVY Tech, Parkview Juvenile Center, the Family and Children's Center, and the park will dominate that sector. The goal of the middle sector of the Southeast sub -area will be revitalization of the neighborhood. The goal of the south sector will be improvement, concentrating on urban design. The goal of the three sectors of Studebaker Corridor will be redevelopment. In the fourth sector we will emphasize strengthening existing businesses. The goal of the Rum Village Industrial District sub -area will be demucking, environmental -7- South Bend Redevelopment Commission Regular Meeting - April 16, 1993 6. NEW BUSINESS (Cont.) c. continued... testing, capitalizing on railroad access and by- pass access to encourage development, and improving Olive Road and land use along Olive Road. The goal of the Sample- Indiana Industrial District will be to improve the edges where it abuts residential areas or the downtown through urban design. The goal for the Rum Village Neighborhood sub -area is to stabilize it. Although this is the better of the two neighborhoods, there are some pockets of deterioration that should be stopped before they spread. Mrs. Kolata pointed out that the Sample -Ewing Development Plan includes a seven -year action plan for implementing this program. It lays out the possible financing that might be available over a seven year period to address the estimated cost of the needs we've identified. It is expected to change over time, but is our attempt to show how this plan might be implemented. In the early years we expect to spend mostly tax increment and Community Development Block Grant funds as well as Civil City funds. In later years, we have proposed using some funds that may become available such as from a Local Option Income Tax. We intend to use this as a tax allocation area only through the end of 1997, although 1997 tax increment would continue to be spent until 1999. The plan also contains a legal description of the Sample -Ewing Development Area and defines South Bend Redevelopment Commission Regular Meeting - April 16, 1993 6. NEW BUSINESS (Cont.) c. continued... the design review process and the method for amending the plan. Mrs. Kolata explained that Resolution No. 1151 takes two existing redevelopment areas, each of which had already been expanded once, and merges them together with additional land to make a new redevelopment area, the Sample - Ewing Development Area. The resolution approves the plan as presented, amends the previous plans into and supersedes them with the Sample -Ewing Development Plan. It states that there is no property presently listed on the acquisition list. However, the plan states that we intend to acquire most of the property north of the alley north of Broadway in the Southeast sub -area for redevelopment. We will amend the plan at a later date with the exact acquisition list. The resolution states that the estimated cost of redevelopment in the area is $25,000,000 over an extended period of time. The resolution also establishes a tax allocation area, made up of the former Studebaker Corridor Allocation Area, the Rum Village Allocation Area and the new part being added at this time. The various sections of the allocation area have different base assessment dates, dependent on when they were first declared TIF allocation areas. The existing tax increment in the Studebaker Corridor is from real property. The existing increment in Rum Village is from both real and Personal Property- Mr. Hunt noted that we plan to use the tax increment in direct expenditures, not by bonding. He also noted that the first part of this in South Bend Redevelopment Commission Regular Meeting - April 16, 1993 6. NEW BUSINESS (Cont.) c. continued... plan leans heavily on redevelopment activity and large scale projects. The last years of the plan will lean heavily on neighborhood and business groups in the areas, the UFA, the Industrial Revolving Loan Fund and smaller efforts. Mr. Hunt also noted that, although it appears that the planning has all been done, this development plan just scratches the surface. There is much more planning to be done. We intend to work closely with neighborhood and business groups to develop a comprehensive plan for the sub -areas. AMPAN Mrs. Kolata noted that this is really a project of the Department of Economic Development. Both the Division of Redevelopment and the Division of Planning and Neighborhood Development will have active roles. Mrs. Kolata noted that following approval of Resolution No. 1151 today, the Area Plan Commission will consider the resolution at its April 20 meeting, the Common Council will consider a resolution to approve the development plan at its April 26 meeting and then the Commission will hold a public hearing in May and consider a confirming resolution. -10- South Bend Redevelopment Commission Regular Meeting - April 16, 1993 6. NEW BUSINESS (Cont.) c. continued... Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1151 designating the Sample -Ewing Development Area, declaring the Sample -Ewing Development Area to be blighted, approving a Development Plan and conditions under which relocation payments will be made, and establishing an Allocation Area for purposes of Tax Incremental Financing. d. Commission approval requested for Release of Easement in the Studebaker Corridor Development Area. Jenny Pitts Manier explained that the Release of Easement relates to a private alley located in Disposition Parcel 11. Since the Commission owns all the property adjacent to this alley, there is no longer a need for the alley and we are requesting the Commission sign the release. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Release of Easement in the Studebaker Corridor Development Area. 7. PROJECT REPORTS Mrs. Kolata introduced Gabriel Okafor, a new Economic Development Specialist for the Division of Redevelopment who will be assisting with acquisition and relocation, and two new Planners in the Division of Planning and Neighborhood Development, Tim Kabat and Marco Marian. -11- COMMISSION APPROVED RESOLUTION NO. 1151 DESIGNATING THE SAMPLE - EWING DEVELOPMENT AREA, DECLARING THE SAMPLE -EWING DEVELOPMENT AREA TO BE BLIGHTED, APPROVING A DEVELOPMENT PLAN AND CONDITIONS UNDER WHICH RELOCATION PAYMENTS WILL BE MADE, AND ESTABLISHING AN ALLOCATION AREA FOR PURPOSES OF TAX INCREMENTAL FINANCING COMMISSION APPROVED THE RELEASE OF EASEMENT IN THE STUDEBAKER CORRIDOR DEVELOPMENT AREA PROJECT REPORTS South Bend Redevelopment Commission Regular Meeting - April 16, 1993 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for May 7, 1993 at 10:00 a.m. ' • �; ►IuI��MII NEXT COMIMIISSION MEETING There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Piasec1d made a motion that the meeting be adjourned. Mr. Donoho seconded the motion and the meeting was adjourned at 11:10 a.m. C-�L/J- Paula N. Auburn, President -12- Ann E. Kolata, Director