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HomeMy WebLinkAboutRM 05-07-93:1 May 7, 1993 10:00 a.m. Presiding Officer: SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING Ms. Paula N. Auburn President 1. ROLL CALL Members Present: Members: Legal Counsel: Redevelopment Staff: Ic Media: Others: 2. APPROVAL OF MINUTES 1308 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Ms. Paula N. Auburn, President Mr. Theo F. Sharp, Secretary Mr. Michael Donoho Mr. Roman J. Piasecki, Vice - President Mr. Philip J. Faccenda Ms. Jenny Pitts Manier Mrs. Ann E. Kolata, Director Mrs. Cheryl Phipps, Office Manager Mr. Dave Norris, Planner Mr. Michael Beitzinger, Economic Dev. Specialist Mr. Thom Howell, U -93 Mr. Don Porter, South Bend Tribune Mr. Carter Wolf, Center City Associates Mr. George Macri, Macri's Bakery Mr. Kelly Hoggard Ms. Leighanne Robison Ms. Cynthia Brubaker, Historic Landmarks Foundation a. Approval of Minutes of the Regular Meeting of Friday, April 16. 1993. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, April 16, 1993. 6E COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, APRIL 16, 1993 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted May 7, 1993, for Approval. ADMIN 1993 Catering By Billie, Inc. South Bend Tribune South Bend Drafting Tri County News Equipment Services Schilling's Sales Co. Corporate Staffing Resources Baker & Daniels General Fund University of Notre Dame Historic Landmark Foundation of Indiana Plastimatic Arts Corp. Urban Land Institute 11 t•' •• IMPK Clerk of the Court Peirce & Associates STUDEBAKER CORRIDOR (ACCT. 4331 The Troyer Group S.B.C.D.A. TIF GENERAL ACCOUNT Indiana Michigan Power Co. NIPSCO South Bend Water Works Indiana Bell Real Estate Management Corp. Howard Park Hardware G.W. Berkheimer Co. Pitcock Design Group -2- $ 64.10 15.02 97.71 14.59 24.00 8.20 999.00 49.50 213.38 974.00 25.00 16.00 100.00 TOTAL $ 2,600.50 $ 600.00 1,818.00 TOTAL $ 2,418.00 $ 2.220.00 $ 2,220.00 $ 1,161.98 589.31 138.87 55.78 1,012.28 11.37 9.36 4,877.34 TOTAL $ 7,856.29 South Bend Redevelopment Commission Regular Meeting - May 7, 1993 3. APPROVAL OF CLAIMS (Cont.) RETURN OF SECURITY DEPOSIT South Bend Tribune Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved the Claims submitted May 7, 1993 for approval. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS a. Public Hearing on Resolution No. 1152, ratifying and confirming Resolution No. 1138 changing the base assessment date for property in the West Washington- Chapin Development Area. Mrs. Kolata asked that the following items be entered into the record: 1) an original of the Notice of Public Hearing of the West Washington - Chapin Development Area; 2) an affidavit of Carol Smith, Advertising Manager of the South Bend Tribune that the Notice of Pubic Hearing was published in that daily paper on April 16, 1993; 3) an affidavit of Lisa J. Andrysiak, Classified -3- $ 18.600.00 TOTAL $ 18, 600.00 GRAND TOTAL $ 33 , 694.79 COMMISSION APPROVED CLAIMS SUBMITTED MAY 7, 1993 FOR APPROVAL THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - May 7, 1993 6. NEW BUSINESS (Cont.) a. continued... Manager of the Tri- County News that the Notice of Pubic Hearing was published in that weekly paper on April 16, 1993; 4) statement from Ann Kolata that at Statement to Taxing Units located within the West Washington - Chapin Development Area was sent to the taxing jurisdictions on April 16, 1993; 5) an original copy of the Area Plan Commission's Resolution No. 116 which deals with the subject of the Public Hearing; 6) a certified copy of Resolution No. 2026 -93 of the Common Council of the City of South Bend relative to the subject of the Public Hearing; and 7) as of 10:00 a.m., May 7, 1993, there were 0 written remonstrances received. Ms. Auburn asked if there was any objection to the items being entered into the record. There was no objection and the items were so entered. Mrs. Kolata explained that Resolution No. 1152 ratifies and confirms Resolution No. 1138 adopted in February amending the base assessment date for the purposes of tax increment financing. In the reassessment of 1989, all of the homesteads in the West Washington area received a tax credit of approximately $2,000 of assessed value per house (subsequently reduced to $1,500 per house). That reduced the value of property in the West Washington area below the base assessed value, causing a negative assessed value of $1,100,000. Revising the base assessment date to March 1, 1992, will bring -4- South Bend Redevelopment Commission Regular Meeting - May 7, 1993 6. NEW BUSINESS (Cont.) a. continued... the base assessment back to $0 and we can begin to accumulate tax increment. Resolution No. 1152 contains a Findings of Fact which states that the blighting conditions which were originally found at the time the West Washington - Chapin Development Area still exist. The presence of blight necessitates continued action by the Redevelopment Commission. Tax increment revenues generated within the area are necessary to fund continued redevelopment. As of March 1, 1987, the original base assessment date, the aggregate assessed value of the area was $9,154,834. Following the reassessment and homestead tax credits, the assessed value of the area was reduced to $8,041,555. Ms. Auburn opened the Public Hearing for anyone who wished to speak. There was no one who wished to speak regarding Resolution No. 1152. Ms. Auburn closed the Public Hearing for whatever action the Commission desired to take. b. Commission approval requested for Resolution No. 1152. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1152 ratifying and confirming Resolution No. 1138 changing the base assessment date for property in the West Washington - Chapin Development Area. -5- PUBLIC HEARING ON RESOLUTION NO. 1152 RATIFYING AND CONFIRMING RESOLUTION NO. 1138 CHANGING THE BASE ASSESSMENT DATE FOR PROPERTY IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA COMMISSION APPROVED RESOLUTION NO. 1152, RATIFYING AND CONFIRMING RESOLUTION NO. 1138, CHANGING THE BASE ASSESSMENT DATE FOR PROPERTY IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - May 7, 1993 6. NEW BUSINESS (Cont.) C. Commission approval requested for Certificate of Completion for the South Bend Tribune Corporation for part of Parcel C27 -7 in the South Bend Central Development Area. Mrs. Kolata explained that Parcel C27 -7 is the property that the Colfax Theater used to be on. When we sold it to the Tribune, the Contract for Sale of Land stipulated that they build a specific building for a specific use. They have completed the building as specified and it is now occupied. Therefore, we would like to issue a Certificate of Completion which acknowledges that they fulfilled their obligations and releases them Amok from further responsibility to the Commission related to this parcel. It also authorizes return of the Tribune's good faith deposit of $18,600. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved the Certificate of Completion for the South Bend Tribune Corporation for part of Parcel C27 -7 in the South Bend Central Development Area. d. Staff report on disposition of property in the South Bend Central Development Area. Mrs. Kolata noted that we retook possession of the L. Keen Building last year from the Kiefer- Zimpleman Partnership and offered it for sale again. No bids were received at that time, but we have been open to proposals since then. We have received two proposals M COMMISSION APPROVED THE CERTIFICATE OF COMPLETION FOR THE SOUTH BEND TRIBUNE CORPORATION FOR PART OF PARCEL C27 -7 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - May 7, 1993 6. NEW BUSINESS (Cont.) d. continued... recently which the staff would like to present to the Commission for their consideration. Ms. Manier noted that the Kiefers and Zimplemans were not able to come up with the entire purchase price for the property, so the Commission agreed to let them make (essentially) rent payments and take possession of the building. While they were making payments, they were pursuing permanent financing and spending their personal funds to begin renovation. When we declared them in default and executed the documents to retake possession of the property, we agreed to give them any proceeds from the sale of the property in order to help reimburse their out of pocket expenses. Since we have been unjustly enriched through this process, and in order to avoid any cloud on the title when we want to transfer it to new owners, we propose to return the $18,700 cash (rent plus security deposit) that they have paid to the City. In return for that, the Kiefer- Zimpleman Partnership has agreed to execute quit -claim deeds for their interests in the property, thereby eliminating the issue of a cloud on the title. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission accepted the letter from Sandra Kiefer, authorized counsel to prepare a quit- claim deed and authorized payment to Kiefer - Zimpleman Partnership for $18,700. -7- COMMISSION ACCEPTED THE LETTER FROM SANDRA KIEFER, AUTHORIZED COUNSEL TO PREPARE A QUIT -CLAIM DEED AND AUTHORIZED PAYMENT TO KIEFER- ZIMPLEMAN PARTNERSHIP FOR $18,700 South Bend Redevelopment Commission Regular Meeting - May 7, 1993 6. NEW BUSINESS (Cont.) d. continued... On March 9 Habitat for Humanity submitted a proposal to purchase the building for $1.00 in order to move their offices, headquarters, and conference rooms to the first floor and to use the upper floor for living quarters for families awaiting completion of Habitat homes. They have funding earmarked for office space sufficient to do the renovation, supplemented by volunteer labor. Habitat for Humanity has a reputation for seeing projects through to completion. Earlier this week we received a proposal from Kelly Hoggard and Leighanne Robison offering $5,000 for the building to renovate the upstairs into one large apartment in which they would live. The first floor would be renovated into two commercial spaces for their own businesses. Mr. Hoggard intends to open an electronics repair business and Ms. Robison intends to open an "in -town farm" to sell seeds, bulbs, produce, and herbs, as well as cut flowers and arrangements, etc. Their proposal mentions that they are applying to the Corporation for Entrepreneurial Development (CED) for a loan which will be considered for approval on May 27. They ask that the Commission not make a decision today, but wait until after May 27 when they have a decision on their loan. If the Commission approved their proposal they expect to complete renovation of the upstairs by the end of July, the first floor by December, and the exterior in the Spring of 1994. South Bend Redevelopment Commission Regular Meeting - May 7, 1993 6. NEW BUSINESS (Cont.) d. continued... Mrs. Kolata also noted that a new inquiry was made this week by someone who had just become aware of the building's availability. They have been taken through the building and are interested in submitting a formal proposal for apartment(s) upstairs and a deli downstairs. They were informed that there were other proposals currently being considered and that the Commission would consider accepting a proposal at this meeting. They would also like the Commission to postpone a decision until May 21 so that they could put together a formal proposal. Mrs. Kolata asked the Commission for some direction in this matter. It was the staff recommendation that the Commission accept the proposal from Habitat because of their ability to see the project through to prompt completion. Although the other proposals are excellent uses for the property, they are reminiscent of the earlier, unsuccessful proposals. The staff feels that the neighborhood needs this building to be renovated. Mr. Hoggard and Ms. Robison spoke to their interest in the property, their ability to complete the project, and answered questions about its use. Ms. Robison has lived in Monroe Park previously and views her In- town farm" as an opportunity to not only have her own business, but to meet some human/socializing needs in the neighborhood. 0 South Bend Redevelopment Commission Regular Meeting - May 7, 1993 6. NEW BUSINESS (Cont.) d. continued... Ms. Auburn expressed her concern that the property not be vacant and unfinished indefinitely. Habitat's reputation for completing their projects is excellent. Mr. Wolf spoke in support of the Hoggard- Robison proposal. He liked the owner- occupied portion of their proposal. Speaking from experience with the West Washington neighborhood, it's owner - occupants, not renters, who care about the neighborhood enough to be involved and influence change. Mr. Hoggard and Ms. Robison spoke to the issue of their being able to complete the project. They expect renovation costs to be between $25,000 and $45,000 and expect to do a lot of the work themselves or have friends who will help. The loan from CED would be an important factor. That is why they would like the Commission to postpone making a decision until they are assured of that loan. But with the loan they were confident they would be successful. It would, however, take them longer than Habitat to finish. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission awarded Parcels M4 -1 and 4 -2 in the South Bend Central Development Area to Habitat for Humanity for $1.00. Mrs. Kolata noted that the Contract for Sale of Land will include the requirement that a lien be put on the property in the amount of $18,700 so that if Habitat for Humanity -10- COMMISSION AWARDED PARCELS M4 -1 AND M4 -2 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA TO HABITAT FOR HUMANITY FOR $1.00 South Bend Redevelopment Commission Regular Meeting - May 7, 1993 6. NEW BUSINESS (Cont.) d. continued.. should sell the property at some future date and realize a profit, we would be paid back the amount we reimbursed the Kiefer Zimpleman Partnership. e. Commission approval requested for Resolution No. 1153 approving an application for real property tax deduction for property located at 212, 214 & 2141/2 N. Niles Avenue. (Macri's Italian Bakery, Inc.) Mr. Beitzinger gave the staff report on the project. Macri's Italian Baker proposed to move their business and expand at the 214 N. Niles location. An existing 6,500 square foot building will be renovated and a 4,500 square foot addition will be built. The building will then house a bakery, a gourmet food section, a deli and an Italian restaurant. The total projected cost of the project is $550,000. The project will create twenty -five new permanent jobs in the first year, representing an annual payroll of $85,000 and will maintain twenty -three existing permanent full- time and seventeen part time positions with an annual payroll of $210,000. The project has not applied for any previous tax abatement consideration. The property is properly zoned for the proposed use. The property is located in a Tax Incremental Financing Allocation Area. The petitioner qualifies for six years of real property tax abatement under the Tax Abatement Ordinance. -11- South Bend Redevelopment Commission Regular Meeting - May 7, 1993 6. NEW BUSINESS (Cont.) e. continued... Without abatement, the taxes generated by this project are estimated to be $158,351 over the six year period. With abatement, the taxes are estimated to be approximately $65,452. Therefore, the cost of the abatement over the six year period is approximately $92,899. Mr. Macri explained that Macri's Bakery is extremely cramped. They have been considering expansion for several years, but their present building does not lend itself to the type of expansion needed. About three years ago, they purchased the building on Niles Avenue, around the corner from their present location. They are very excited about their proposed project. They will be able to have a larger deli, increase the variety of gourmet foods they sell, and offer restaurant facilities to seat about 200 people. During the lunch hours the menu will be sandwiches, similar to the Macri's Deli on Grape Road. During the dinner hours they will offer Italian dishes. There will also be a courtyard with outside seating. Parking will be at the back of the building. Mr. Macri noted that they hope to begin construction by the end of June and be ready to open by November. Upon a motion by Mr. Donoho, seconded by COMMISSION APPROVED RESOLUTION Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1153 approving an application for real property tax deduction for property located at 212, 214, 51PA NO. 1153 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 212, 214, AND 2141h N. NILES AVENUE South Bend Redevelopment Commission Regular Meeting - May 7, 1993 6. NEW BUSINESS (Cont.) e. continued... and 214'/2 N. Niles Avenue (Macri's Italian Bakery, Inc.) 7. PROGRESS REPORTS Mrs. Kolata reported that we expect to have the Public Hearing on the Sample -Ewing Development Area at the May 21 Commission meeting. Mrs. Kolata reported that she and several others went to Madison, Wisconsin, to look at some projects developed by The Alexander Company. The staff has also met with The Holladay Corporation concerning their proposal for the Opelika Building. We hope to come to a conclusion regarding those proposals in the near future. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for May 21, 1993 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Commission, Mr. Sharp made a motion that the meeting be adjourned. Mr. Donoho seconded the motion and the meeting was adjourned at 11:23 a.m. Paula N. Auburn, President -13- PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT l U- Ann E. Kolata, Director