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Home My WebLink AboutRM 06-04-93REDEVELOPMENT COMMISSION REGULAR MEETING June 4, 1993 1308 County -City Building Presiding: Paula N. Auburn 227 W. Jefferson Boulevard President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Paula N. Auburn, President Mr. Roman J. Piasecki, Vice- President Mr. Michael Donoho Mr. Philip 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 Media: Mr. Thom Howell, U -93 AM Mr. Don Porter, South Bend Tribune Others: Mr. Carter Wolf, Center City Associates Mr. Bob Kastens, Capitol Technologies 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday, May 21, 1993. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, May 21, 1993. 3. APPROVAL OF CLAIMS ADMIN 1993 Gene's Camera -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, MAY 21, 1993 $ 28.92 South Bend Redevelopment Commission Regular Meeting - June 4, 1993 3. APPROVAL OF CLAIMS (Cont.) ADMIN 1993 continued... Osco Drugs Cheryl Phipps St. Joseph County Recorders Office VISA I & M Power Catering by Billie Total Admin 1993 0) E 5 go) . 1 The Troyer Group Total Redevelopment General SBCDA TIP W. W. Grainger Howard Park Hardware Indiana Bell Telephone NIPSCO Rose Exterminator South Bend Water Works Ken Herceg & Associates Total SBCDA TIF BOND ANTICIPATION NOTE Baker & Daniels Total Bond Anticipation Note McCloskey -Pitts Associates York Title & Escrow Total Studebaker Corridor GRAND TOTAL -2- 3.81 47.22 86.00 339.89 6.00 87.70 $ 599.54 $ 1,317.40 $ 1,317.40 $ 61.05 15.98 52.70 117.54 175.00 127.61 1008.16 $ 1558.04 $ 1,112.33 $ 1,112.33 111 11 1 1.1 mom $ 7,737.31 South Bend Redevelopment Commission Regular Meeting - June 4, 1993 3. APPROVAL OF CLAIMS (Cont.) Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Claims submitted June 4, 1993 for payment. 4. COMMUNICATIONS There were no Communications. There was no Old Business. 6. NEW BUSINESS Mrs. Kolata asked permission to move item 6.m. to the top of New Business. There was no objection and item 6.m. was considered first. m. Commission approval requested for Resolution No. 1163 approving an application for real pEWga tax deduction for Pam located at 3615 Voorde Drive in the Aimort Economic Development Ate. (Capitol Technologies) Mr. Beitzinger read the staff report on the project. Capitol Technologies is a manufacturer of special, automated machinery and sophisticated dies and fixtures. Their project calls for the construction of a new assembly building. The building will be approximately 25,000 square feet and will join together two existing buildings. Additionally, extensive renovation of over 16,000 square feet to the engineering building and office area will be done. This is the second phase of -3- COMMISSION APPROVED THE CLAIMS SUBMITTED JUNE 4, 1993 FOR PAYMENT THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - June 4, 1993 6. NEW BUSINESS (Cont.) m. continued... over $2.7 million investment. $1.3 million is currently being purchased and will be housed in the new building. The equipment received a five -year personal property tax abatement in March 1993. This project will make Capitol Technologies a world class machine and tool builder and truly automated equipment manufacturer. The total cost of the redevelopment and rehabilitation is estimated at $1.4 million. The project will create ten new permanent, full time jobs representing an annual payroll of $400,000. This is in addition to the twenty new permanent, full time jobs (representing an annual payroll of $800,000) which were projected with the personal property tax abatement in March. The project will also maintain 129 existing permanent, full time jobs with an annual payroll of $5,400,000. The project 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. The petitioner qualifies for six years of real property tax abatement under the Tax Abatement Ordinance, but has applied for ten years of abatement, based on the new construction of 25,000 square feet and renovation of over 16,000 square feet. If renovations qualified for square footage consideration, the total square footage -4- South Bend Redevelopment Commission Regular Meeting - June 4, 1993 6. NEW BUSINESS (Cont.) m. continued... (41,000 square feet) would exceed the amount required for a ten year abatement. Mr. Kastens was present to answer questions concerning the application. He noted that the new jobs to be created are mostly in the engineering portion of their business. They are requesting special consideration for a ten -year abatement based on the fact that if renovated square footage could be counted toward the total square feet of a project, the total would exceed the required amount for a ten -year abatement. Mr. Beitzinger presented the cost schedule for a ten and a six year abatement. Based on an estimated project cost of $1,400,000, and a tax rate of 14.3955 % the project would generate approximately $403,074 without abatement. With a six- year abatement, the taxes are estimated to be approximately $166,604. Therefore the cost of a six-year abatement would be approximately $236,470. With at ten -year abatement, the taxes are estimated to be approximately $339,254. Therefore the cost of a ten -year abatement would be approximately $332,436. Mr. Donoho disclosed that his employer, Koontz Wagner Electric, may be working with Capitol Technologies on this project, but that he, himself, is not working with them. Ms. Manier did not feel that this relationship constituted a conflict of interest. -5- South Bend Redevelopment Commission Regular Meeting - June 4, 1993 6. NEW BUSINESS (Cont.) m. continued... The Commission discussed the special request for a ten -year abatement but did not feel that the circumstances warranted an exception to the ordinance. Upon a motion by Mr. Piasecki, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1163 approving an application for six years of real property tax deduction for property located at 3615 Voorde Drive in the Airport Economic Development Area. a. Commission approval requested for use of the Shouners Lot by Center City Associates on June 5, 1993. Mrs. Kolata explained that CCA and the South Bend Tribune wish to use the Shoppers Lot for a musicfest as part of the Sunburst Marathon on the evening of June 5. They have provided a copy of the Certificate of Insurance. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission authorized the use of the Shoppers Lot by Center City Associates (and the South Bend Tribune ?) on June 5, 1993. b. Commission =royal requested for use of the Morris Civic Plaza by Center City Associates on June 30. 1993. Mrs. Kolata noted that Center City Associates would like to hold their annual 0 COMMISSION APPROVED RESOLUTION NO. 1163 APPROVING AN APPLICATION FOR SIX YEARS OF REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3615 VOORDE DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA COMMISSION AUTHORIZED THE USE OF THE SHOPPERS LOT BY CENTER CITY ASSOCIATES ON JUNE 5, 1993 South Bend Redevelopment Commission Regular Meeting - June 4, 1993 6. NEW BUSINESS (Cont.) b. continued... recognition breakfast at the Morris Civic Plaza at 7:30 a.m. on June 30. The staff recommends approving the request. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission authorized the use of the Morris Civic Plaza by Center City Associates on June 30, 1993. Mrs. Kolata asked permission to add item 6.n. to the agenda. There was no objection and item 6.n. was added. n. Commission authorization requested to transfer property for Real Services Inc. Mrs. Kolata noted that Real Services wants to transfer title of the property for their new building in the Studebaker Corridor from Real Services Incorporated to Real Services Housing Incorporated. They need this change to complete their permanent financing on the project. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission authorized transfer of title for property from Real Services Incorporated to Real Services Housing Incorporated. c. Commission approval requested for Resolution No. 1156 approving the Fair Reuse Value of Land for prQpffly in the South Bend Central Development Area. (Shoppers Lot and Transpo Lot) -7- COMMISSION AUTHORIZED THE USE OF THE MORRIS CIVIC PLAZA BY CENTER CITY ASSOCIATES ON JUNE 30, 1993 COMMISSION AUTHORIZED TRANSFER OF TITLE FOR PROPERTY FROM REAL SERVICES INCORPORATED TO REAL SERVICES HOUSING INCORPORATED South Bend Redevelopment Commission Regular Meeting - June 4, 1993 6. NEW BUSINESS (Cont.) c. continued... Mrs. Kolata noted that items 6.c., 6.d., and 6.e. are related to preparing the Shoppers and Transpo lots for sale. We offered the Shoppers Lot for sale a number of years ago, setting a price at that time. We are currently discussing its sale, along with the Transpo lot, with a couple of developers and thought the appraisal should be updated and a Fair Reuse Value established for that as well as the Transpo Lot. She noted that we don't own the Transpo lot, but have an agreement with Transpo that if we get a certain size development they will move. The minimum offering price for the combined site, including the right -of -way between them, is $405,000 for the 91,101 square foot parcel. Mrs. Kolata noted that, in the bid specifications, we convert that price to $4.45 per square foot so that someone could bid on less than the full site. However, the bid specifications indicate that if that option is used, the remaining land must be a usable sized piece. The bid specifications also include a requirement that a minimum of 60,000 square feet of office space must be constructed on the site in at least three stories. They must make full use of the site. If the development is to be phased, site plans and schedule for each phase must be submitted. Mrs. Kolata noted that the bid specifications include design considerations South Bend Redevelopment Commission Regular Meeting - June 4, 1993 6. NEW BUSINESS (Cont.) c. continued... which are not mandatory, but preferred: a zero setback requirement; plan for on- and off -site parking; the architectural design should be sensitive to surrounding buildings; a prohibition against putting a billboard on the site at any time; maintaining a visual corridor from Century Center's main entrance to the Courthouse entrance. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1156 approving the Fair Reuse Value of Land for property in the South Bend Central Development Area. (Shoppers Lot and Transpo Lot) d. Commission approval requested for Bid Specifications and Design Considerations for Disposition Parcels C4 -46 and C4 -65 in the South Bend Central Development Arse . (Shoppers lot and Transpo lot) Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Bid Specifications and Design Considerations for Disposition Parcels C4 -46 and C4 -65 in the South Bend Central Development Area. (Shoppers lot and Transpo lot) e. Commission authorized publication of Notice of Intended Sale of RmM y in the South Bend Central Development Area with publication dates to be June 11 and June 18. 1993 and receipt of bids to be at 0 COMMISSION APPROVED RESOLUTION NO. 1156 APPROVING THE FAIR REUSE VALUE OF LAND FOR PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (SHOPPERS LOT AND TRANSPO LOT) COMMISSION APPROVED THE BID SPECIFICATIONS AND DESIGN CONSIDERATIONS FOR DISPOSITION PARCELS C4-46 AND C4 -65 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (SHOPPERS LOT AND TRANSPO LOT) South Bend Redevelopment Commission Regular Meeting - June 4, 1993 6. NEW BUSINESS (Cont.) e. continued... 10:00 a.m. on July 2. 1993. (Ds sition Parcels C4-46 and C4 -65) Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission authorized publication of Notice of Intended Sale of Property in the South Bend Central Development Area with publication dates to be June 11 and June 18, 1993 and receipt of bids to be at 10:00 a.m. on July 2, 1993. (Disposition Parcels C4 -46 and C4 -65) L Commission approval requested for proposal for a0misal services in the S rw outh Bend Central Development Area. Mrs. Kolata explained that we want to have five pieces of property in the downtown area appraised for disposition. Those properties are the Michigan and Western lot, the Main and Western lot, the Baer lot, the Senor Kelly lot, and the Robertson's Building. Some of them have been appraised and offered before, but the appraisals are old. We've had some interest expressed in some of the property and want to be ready to sell the property. We have received appraisals from McCloskey -Pitts & Associates and from Baer Barkley & Company. McCloskey - Pitts has proposed to do all five appraisals for $9,000. Baer Barkley proposed to do -10- COMMISSION AUTHORIZED PUBLICATION OF NOTICE OF INTENDED SALE OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA WITH PUBLICATION DATES TO BE JUNE 11 AND JUNE 18, 1993 AND RECEIPT OF BIDS TO BE AT 10:00 A.M. ON JULY 2, 1993. (DISPOSITION PARCELS C4-46 AND C4-65) South Bend Redevelopment Commission Regular Meeting - June 4, 1993 6. NEW BUSINESS (Cont.) L continued... all five for a total of $7,945. The staff recommends accepting both proposals. Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission accepted the proposal from McCloskey -Pitts & Associates for $9,000 and the proposal from Baer Barkley & Associates for $7,945 for appraisal services in the South Bend Central Development Area. g. Commission approval requested for Resolution No. 1157 agroving� the Fair Reuse Value of Land for property in the Sample -Ewine Development Area. (Disposition Parcel 26) Mrs. Kolata explained that items 6.g., 6.h., and 61 are related to selling land in the Sample -Ewing Development Area. It is a small parcel, 16,445 square feet, just south of Broadway on Main Street. The reuse valuation is $11,750. The proposed reuse is light industrial. The bid specifications are similar to our other Studebaker Corridor bid specifications, including a minimum site coverage stipulation of 20%. We did not control this parcel until about a month ago, so it was not offered with the other Studebaker Corridor disposition offerings. -11- COMMISSION ACCEPTED THE PROPOSAL FROM MCCLOSKEY -PITTS & ASSOCIATES FOR $9,000 AND THE PROPOSAL FROM BAER BARKLEY & ASSOCIATES FOR $7,945 FOR APPRAISAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - June 4, 1993 6. NEW BUSINESS (Cont.) g. continued... Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1157 approving the Fair Reuse Value of Land for property in the Sample -Ewing Development Area. h. Commission approval requested for Bid Specifications and Design Considerations for Disposition Parcel 26 in the Sample - Ewing Development Area. Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Bid Specifications and Design Considerations for Disposition Parcel 26 in the Sample - Ewing Development Area. i. Commission authorization requested to publish Notice of Intended Sale of Property in the Sample -Ewing Development Area with publication dates to be June 11 and June 18, 1993 and receipt of bids to be at 10:00 a.m. on Julv WWI j Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission authorized publication of Notice of Intended Sale of Property in the Sample -Ewing Development Area with publication dates to be June 11 and June 18, 1993 and receipt of bids to be at 10:00 a.m on July 2, 1993. -12- COMMISSION APPROVED RESOLUTION NO. 1157 APPROVING THE FAIR REUSE VALUE OF LAND IN THE SAMPLE -EWING DEVELOPMENT AREA COMMISSION APPROVED THE BID SPECIFICATIONS AND DESIGN CONSIDERATIONS FOR DISPOSITION PARCEL 26 IN THE SAMPLE -EWING DEVELOPMENT AREA COMMISSION AUTHORIZED PUBLICATION OF NOTICE OF INTENDED SALE OF PROPERTY IN THE SAMPLE -EWING DEVELOPMENT AREA WITH PUBLICATION DATES TO BE JUNE 11 AND JUNE 18, 1993 AND RECEIPT OF BIDS TO BE AT 10:00 A.M. ON JULY 2, 1993 South Bend Redevelopment Commission Regular Meeting - June 4, 1993 6. NEW BUSINESS (Cont.) j. Commission approval requested for Resolution No. 1158 approving the execution of an Agency Agreement with the Board of Public Works of the City of South Bend and ratifvine certain actions in connection therewith. Ms. Manier explained that Resolution No. 1158 authorizes the Board of Public Works to act as the Commission's agent with respect to the Hall of Fame project and the expenditure of the Bond Anticipation Note, including hiring design consultants and making purchases and acquisitions related to the project. It also ratifies actions taken to date by the Board of Public Works, including hiring certain design professionals. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1158 approving the execution of an Agency Agreement with the Board of Public Works of the City of South Bend and ratifying certain actions in connection therewith. k. Commission approval Resolution No. 1159 requested for determining to pay certain expenses incurred for local public improvements in or serving the Sample - Ewing Allocation Allocation Area Area No. 8) (South Bend from the Sample - Ewing Allocation Allocation Area Area No. 8) (South Bend Special Fund. Mrs. Kolata explained 6.k. and 6.1. Both Resolution No. 1159 and Resolution -13- COMMISSION APPROVED RESOLUTION NO. 1158 APPROVING THE EXECUTION OF AN AGENCY AGREEMENT WITH THE BOARD OF PUBLIC WORKS OF THE CITY OF SOUTH BEND AND RATIFYING CERTAIN ACTIONS IN CONNECTION THEREWITH South Bend Redevelopment Commission Regular Meeting - June 4, 1993 6. NEW BUSINESS (Cont.) k. continued... No. 1160 determine to use tax increment in a specific allocation area for improvements in the allocation area. Public Hearings will be held on June 18 to appropriate the tax increment proceeds. The amount of funds to be appropriated in the Sample -Ewing area is $2,000,000 to be used for acquisition of property and other redevelopment expenses. The funds to be appropriated in the Airport area is $398,000 for making two lease payments on the Airport bonds. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1159 determining to pay certain expenses incurred for local public improvements in or serving the Sample - Ewing Allocation Area (South Bend Allocation Area No. 8) from the Sample - Ewing Allocation Area (South Bend Allocation Area No. 8) Special Fund. 1. Commission gpproval requested for Resolution No. 1160 determining to pay certain expenses incurred for local public improvements in or serving the AiWQA Economic Development Area Allocation Area No. 1 ( "Allocation Area No. l!) from the Airport Economic Development Area Allocation Area No. 1 S_necial Fund (the "Allocation Fund ") -14- COMMISSION APPROVED RESOLUTION NO. 1159 DETERMINING TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE SAMPLE -EWING ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 8) FROM THE SAMPLE -EWING ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 8) SPECIAL FUND South Bend Redevelopment Commission Regular Meeting - June 4, 1993 6. NEW BUSINESS (Cont.) 1. continued... Upon a motion by Mr. Faccenda, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1160 determining to pay certain expenses incurred for local public improvements in or serving the Airport Economic Development Area Allocation Area No. 1( "Allocation Area No. 1") from the Airport Economic Development Area Allocation Area No. 1 Special Fund (the "Allocation Fund "). 7. PROGRESS REPORTS Mrs. Kolata reported that we have begun the survey and title work to start the acquisition process in the Sample -Ewing Development Area. We have sent letters to 79 property owners notifying them of our interest in purchasing their property and notifying them of the names of title and survey companies working for us, as well as informing them that they should not move at this time. Mrs. Kolata also reported that the Blackthorn Golf Course construction is nearly complete, though not seeded. The clubhouse is under construction and contracts for construction of the maintenance building have been awarded. I & M has started to place the new poles for the relocated power lines. Progress in the area is very evident. The developer projects that construction should be complete by the end of September, which is ahead of schedule. -15- COMMISSION APPROVED RESOLUTION NO. 1160 DETERMINING TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE AIRPORT ECONOMIC DEVELOPMENT AREA ALLOCATION AREA NO. 1 ( "ALLOCATION AREA NO. 1 ") FROM THE AIRPORT ECONOMIC DEVELOPMENT AREA ALLOCATION AREA NO. 1 SPECIAL FUND (TIC "ALLOCATION FUND ") PROGRESS REPORTS South Bend Redevelopment Commission Regular Meeting - June 4, 1993 : • • 1- The Next Regular Meeting of the Commission NEXT COMMISSION MEETING is scheduled for June 18, 1993 at 10:00 a.m. There being no further business to come ADJOURNMENT before the Commission, Mr. Donoho made a motion that the meeting be adjourned. Mr. Piasecki seconded the motion and the meeting was adjourned at 10:58 a.m. Paula N. Auburn, President Ann E. Kolata, birectbr -16-