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Home My WebLink AboutRM 06-18-93June 18, 1993 Presiding: Paula N. Auburn President 1. ROLL CALL 2. REDEVELOPMENT COMMISSION REGULAR MEETING 1308 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana Members Present: Ms. Paula N. Auburn, President Mr. Roman J. Piasecki, Vice - President Mr. Theo F. Sharp, Secretary Members Absent: Mr. Philip Faccenda Mr. Michael Donoho Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff. Mrs. Ann Kolata, Director Mr. Jon R. Hunt, Executive Director Mrs. Cheryl Phipps, Office Manager Mr. Michael Beitzinger, Economic Dev. Specialist Media: Mr. Don Porter, South Bend Tribune Mr. Thom Howell, U -93 Ms. Diane Daniels, WSJV -TV Others: Mr. Stan Blenke, Schafer Gear Works Mr. Ernest Szarwark, Barnes & Thornburg Mr. T. Brooks Brademas APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Edda y,June 4, 1993. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, June 4, 1993. -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, JUNE 4, 1993 3. APPROVAL OF CLAIMS Claims Submitted June 18, 1993 for Approval: ADMIN 1993 Catering By Billie, Inc. $ 87.70 Jerry Hoffman 990.00 Indiana Michigan Power Co. 6.00 Plastimatic Arts Corp. 459.00 Tri County News 25.84 South Bend Tribune 27.69 Equipment Services 78.00 Corporate Staffing Resources 612.00 I.C.M.A. Distribution Center 31.40 Prudential J.C. Dunfee Realtors 437.50 TOTAL $ 2,755.13 S.B.C.D.A. TIF GENERAL- ACCOUNT Ken Herceg & Associates $ 2,000.00 TOTAL $ 2,000.00 It I 01 a M-11 114 :• York Title & Escrow, Inc. $ 150.00 Jerome E. Michaels, MAI 3,000.00 Raymond Patterson 1,006.00 Jerome E. Michaels, MAI 1,500.00 TOTAL $ 5,656.00 BOND ANTICIPATION NOTE Baker & Daniels $ 1,033.00 Verkler, Inc. 23,000.00 Gerard Hilferty 40,752.28 TOTAL 64,785.28 GRAND TOTAL $ 75.196.41 -2- South Bend Redevelopment Commission Regular Meeting - June 18, 1993 3. APPROVAL OF CLAIMS (Cont.) Upon a motion by Mr. Sharp, seconded by Mr. COMMISSION APPROVED CLAIMS Piasecki and unanimously carried, the Commission SUBMITTED NNE 18, 1993 FOR approved the Claims submitted June 18, 1993 for APPROVAL approval. 4. COMMUNICATIONS There were no Communications. THERE WERE NO COMMUNICATIONS 5. OLD BUSINESS There was no Old Business. THERE WAS NO OLD BUSINESS 6 NEW BUSINESS a. Public Hearing on Resolution No. 1161, a supplemental a�priation resolution of the City of South Bend Redevelopment Commission. Mrs. Kolata explained that Resolution No. 1161 is related to the appropriation of $2,000,000 from the Sample -Ewing Development Area Tax Increment Allocation Area Fund. Mrs. Kolata noted that we have received the proofs of publication from the South Bend Tribune and the Tri- County News stating that the Notice of Public Hearing was published on June 4, 1993. Mrs. Kolata explained that the $2,000,000 will be used for certain activities in the Sample - Ewing Development Area. An exact budget has not be set, but the funds will be used in four major categories: 1) neighborhood planning in the Southeast Neighborhood and the Rum Village Neighborhood, including the hiring of an outside planning consultant to -3- South Bend Redevelopment Commission Regular Meeting - June 18, 1993 6. NEW BUSINESS (Cont.) a. continued... work with each neighborhood group (approximately $60,000 - $100,000); 2) pedevelopment activities related to acquiring land north of Broadway Street, including title work, survey work, and appraisals (269 pieces of property for approximately $200,000 - $300,000); 3) public works in Studebaker Corridor (approximately $200,000); and 4) acquisition and relocation in the area north of Broadway (approximately $1,400,000). Ms. Auburn asked if there was any objection to entering the proofs of publication into the record. There was no objection and the items were so entered. Ms. Auburn opened the Public Hearing on PUBLIC HEARING ON RESOLUTION Resolution No. 1161 for anyone who wished NO. 1161 to speak. There was no one who wished to speak. Ms. Auburn closed the Public Hearing. b. Commission aMr—oval requested for Resolution No. 1161. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1161, a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. C. Public Hearing on Resolution No. 1162, a Supplemental apprQpriation resolution of the City of South Bend Redevelopment Commission. -4- COMMISSION APPROVED RESOLUTION NO. 1161, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION South Bend Redevelopment Commission Regular Meeting - June 18, 1993 6. NEW BUSINESS (Cont.) C. continued... Mrs. Kolata explained that Resolution No. 1162 appropriates $398,000 of Airport Tax Increment Financing funds for 1994 lease payments on bond issues in the Airport Economic Development Area. Mrs. Kolata noted that we have received the proofs of publication from the South Bend Tribune and Tri- County News showing that the Notice of Public Hearing was published on June 4, 1993. Ms. Auburn asked if there was any objection to these items being entered into the record. There was no objection and the items were so entered. Ms. Auburn opened the Public Hearing on Resolution No. 1162. There was no one who wished to be heard. Ms. Auburn closed the Public Hearing. d. Commission approval requested for Resolution No. 1162. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1162, a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. e. Commission approval requested for Resolution No. 1164 approving an application for personal property tax deduction for property located at 814 S. Main Street in the Sample -Ewing Development Area. (Schafer Gear Works) -5- PUBLIC HEARING ON RESOLUTION NO. 1162 COMMISSION APPROVED RESOLUTION NO. 1162, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION South Bend Redevelopment Commission Regular Meeting - June 18, 1993 6. NEW BUSINESS (Cont.) e. continued... Mr. Beitzinger read the staff report on the project. Schafer Gear Works is a manufacturer of gears and machined parts to customer specifications. Their project calls for the purchase of two CNC (computer numerical controlled) lathes. The lathes will be used exclusively to manufacture ball and socket parts for a specific customer. The total cost of the machines is estimated at The project will create five new permanent, full-time jobs, representing an annual payroll of $125,000 and will maintain fifty -eight existing, permanent, full-time and part -time jobs with an annual payroll of $1,500,000. Schafer Gear Works was previously granted a five -year personal property tax abatement in 1998 and again in 1991 and is in compliance with the reporting requirements for those abatements. The property is properly zoned for the proposed use. The property is located in an area presently designated as a Tax Abatement Impact Area and in a Tax Incremental Financing Allocation Area. The project qualifies for five years of personal property tax abatement under the Tax Abatement Ordinance. Without abatement, the project would generate approximately $45,149 in taxes over the five year period. With abatement, the project will generate approximately $8,006. Therefore, the cost of the abatement is approximately $37,143. I" South Bend Redevelopment Commission Regular Meeting - June 18, 1993 6. NEW BUSINESS (Cont.) e. continued... Mr. Blenke noted that a major customer of Schafer Gear Works' has given them a large, three -year contract for which these two pieces of equipment are required. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1164 approving an application for personal property tax deduction for property located at 814 S. Main Street in the Sample -Ewing Development Area. (Schafer Gear Works) f. Commission approval requested for Resolution No. 1165 approving an application for personal pLQM y tax deduction for property located at 3605 W. Cleveland Road in the Airroort Economic Development Area. (AE Piston) Ms. Auburn declared a conflict of interest on this item and because of there there was not a quorum to vote on this item. Item 6.f. was tabled until the next meeting of the Commission. g. Commission aunroval requested for Resolution No. 1165 approving an application for real proper y tax deduction for , property located at 3605 W. Cleveland Road in the Airport Economic Development Area. (AE Piston) Ms. Auburn declared a conflict of interest on this item and item 6.g. was tabled until the next meeting of the Commission. -7- COMMISSION APPROVED RESOLUTION NO. 1164 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 814 S. MAIN STREET IN THE SAMPLE - EWING DEVELOPMENT AREA (SCHAFER GEAR WORKS) ITEM 6.17. WAS TABLED UNTIL THE NEXT MEETING ITEM 6.G. WAS TABLED UNTIL THE NEXT MEETING South Bend Redevelopment Commission Regular Meeting - June 18, 1993 6. NEW BUSINESS (Cont.) h. Commission approval requested for Resolution No. 1167 appr9ying an application for personal property tax deduction for property located at 251 E. Sample Street in the South Bend Central Development Area. ( Ziker Cleaners) Mrs. Kolata noted that 6.h. and 61 are both related to Ziker Cleaners' tax abatement petition. Mr. Beitzinger read the tax abatement report. Ziker Cleaners, a full- service cleaning and dry cleaning business, also operates a uniform rental operation. They propose to construct a 10,000 - 20,000 square foot addition to the existing building and add new washers, dryers, and a state -of -the -art water filtration/conservation system. The total estimated cost of the new building is $250,000 and the estimated cost of the new equipment is $500,000. The project will create five new permanent full-time jobs, representing a total annual payroll of $100,000. The project will also maintain one hundred and thirty-five existing full-tune and part-time jobs representing an annual payroll of $2,500,000. Mr. Beitzinger noted that Ziker Cleaners was granted a three -year real property tax abatement and a five -year personal property tax abatement in 1989. The personal property abatement was subsequently denied by the State Board of Tax Commissioners due to an interpretation of the manufacturing equipment. C -8- South Bend Redevelopment Commission Regular Meeting - June 18, 1993 6. NEW BUSINESS (Cont.) h. continued... The property is properly zoned for the proposed use. The property is located in a tax Abatement Impact Area and in a Tax Incremental Financing Allocation Area. The project qualifies for three years of real property tax abatement under the Tax Abatement Ordinance. Under the Tax Abatement Ordinance, the project does not qualify for the personal property tax abatement because Ziker's SIC code is 72 and personal property tax abatements are for major groups 20 through 39 and 42. However, the petitioner has indicated that the use of the new equipment will be utilized under SIC #2899 and wishes to be considered for personal property abatement. The staff recommends that they seek a determination from the State Board of Tax Commissioners before seeking local tax abatement consideration. Mr. Szarwark, representing Ziker Cleaners, replied that Ziker Cleaners would not be able to get a ruling form the State Board of Tax Commissioners within the time frame necessary for the project. Also, if the State Board of Tax Commissioners rules against the abatement, they'd like the opportunity to appeal the decision to the Indiana Tax Board. Mr. Szarwark explained the reasoning behind Ziker's claim that the equipment is manufacturing equipment. The equipment is state -of -the -art filtration equipment which will extract the cleaning solutions from the water South Bend Redevelopment Commission Regular Meeting - June 18, 1993 6. NEW BUSINESS (Cont.) h. continued... and recycle the water. It was not clear whether the cleaning chemicals would be able to be reused. Mrs. Kolata responded that Ziker Cleaners as a whole has one SIC code, which does not qualify for the personal property tax abatement. But they want to be considered under a different SIC code. The staff doesn't feel it has the right to change a company's SIC code for this purpose, or any other purpose. She suggested tabling Resolution No. 1167, and asking the Commission attorney to meet with the Common Council attorney to resolve the question of Ziker's ability to qualify under a different SIC code than the one they are assigned. Item 6.h. was tabled. ITEM 6.H WAS TABLED i. Commission approval requested for Resolution No. 1168 approving an application for real property tax deduction for property located at 251 E. Sample Street in the South Bend Central Development Area. (Ziker Cleaners) Mr. Beitzinger noted that without abatement, the taxes on the real property would be approximately $35,989 over the three year period. With abatement, the taxes would be approximately $12,116. Therefore the cost of the abatement over the three year period would be approximately $23,873. -10- South Bend Redevelopment Commission Regular Meeting - June 18, 1993 6. NEW BUSINESS (Cont.) L continued... Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1168 approving an application for real property tax deduction for property located at 251 E. Sample Street in the South Bend Central Development Area. (Ziker Cleaners) j. Commission authorization requested for use of Redevelopment owned parking lots for 1993 Ethnic Festival on July 2 - July 6, 1993. Mrs. Kolata explained that Community Affairs has asked to use several downtown parking lots during various hours for activities related to the Ethnic festival. The staff recommends granting the request. COMMISSION APPROVED RESOLUTION NO. 1168 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 215 E. SAMPLE IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (ZIKER CLEANERS) Upon a motion by Mr. Piasecki, seconded by COMMISSION AUTHORIZED THE USE OF Mr. Sharp and unanimously carried, the REDEVELOPMENT OWNED PARKING Commission authorized the use of LOTS FOR THE 1993 ETHNIC FESTIVAL Redevelopment owned parking lots for the ON JULY 2-6, 1993 1993 Ethnic Festival on July 2- 6,1993. k. Commission approval requested for anointment to the Design Review Committee for the West Washin on- Chapin Development Area. Mrs. Kolata noted that a member of the West Washington - Chapin Design Review Committee resigned when he moved out of the community. The West Washington - Chapin neighborhood organization recommends that the Commission appoint -11- South Bend Redevelopment Commission Regular Meeting - June 18, 1993 6. NEW BUSINESS (Cont.) k. continued... Charles Greene. He is a long time resident of the area. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission appointed Charles Greene to the Design Review Committee for the West Washington - Chapin Development Area. 1. Commission approval requested for Resolution No. 1169 setting the Fair Reuse Value of Property for Disposition Parcel M18 -5 in the South Bend Central Development Area. (516 S. St. Joseph) Mrs. Kolata explained that we recently purchased this single family home because it was in extreme disrepair. It contains over 3,000 square feet of space. The reuse valuation, based on two appraisals, is $5,500. We expect to receive a bid on the property. We are requiring that it be used for residential, either for single family or two - family rehabilitation. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1169 setting the Fair Reuse Value of Property for Disposition Parcel M18 -5 in the South Bend Central Development Area. (516 S. St. Joseph) m. Commission auuroval requested for Bid Spgdfications and Design Considerations for -12- COMMISSION APPOINTED CHARLES GREENE TO THE DESIGN REVIEW COMMITTEE FOR THE WEST WASHINGTON -CHAPIN DEVELOPMENT AREA COMMISSION APPROVED RESOLUTION NO. 1169 SETTING THE FAIR REUSE VALUE OF PROPERTY FOR DISPOSITION PARCEL M18 -5 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - June 18, 1993 6. NEW BUSINESS (Cont.) m. continued... Disposition Parcel M18 -5 in the South Bend Central Development Area (516 S. St. Jos h Upon a motion by Mr. Sharp, seconded by Mr. Piasecid and unanimously carried, the Commission approved the Bid Specifications and Design Considerations for Disposition Parcel M18 -5 in the South Bend Central Development Area. (516 S. St. Joseph) n. Commission approval requested to publish Notice of Intended Sale of Land in the South Bend Central Development Area with publication dates to be June 25 and July 2 1993 and receipt of bids to be at 10:00 a.m. on July 16, 1993. (Disposition Parcel M18 -51 Upon a motion by Mr. Piasec1d, seconded by Mr. Sharp and unanimously carried, the Commission authorized publication of the Notice of Intended Sale of Land in the South Bend Central Development Area with publication dates to be June 25 and July 2, 1993 and receipt of bids to be at 10:00 a.m. on July 16, 1993. (Disposition Parcel M18 -5) o. Commission approval requested for Economic Impact Study in the South Bend Central Development Area. (Morris /Palais Project) Mrs. Kolata explained that Quantech Research Associates has submitted a proposal to do an analysis of the expected economic impact of the renovated Morris /Palais project. The cost of the study is $2,500 with -13- COMMISSION APPROVED BID SPECIFICATIONS AND DESIGN CONSIDERATIONS FOR DISPOSITION PARCEL M18 -5 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (516 S. ST. JOSEPH) COMMISSION AUTHORIZED PUBLICATION OF THE NOTICE OF INTENDED SALE OF LAND IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA WITH PUBLICATION DATES TO BE JUNE 25 AND JULY 2, 1993 AND RECEIPT OF BIDS TO BE AT 10:00 A.M. ON JULY 16, 1993. (DISPOSITION PARCEL M18 -5) South Bend Redevelopment Commission Regular Meeting - June 18, 1993 6. NEW BUSINESS (Cont.) o. continued... a fmal report submitted no later than August 16, 1993. Quantech is a business of Dr. John Peck, who is also a professor at IUSB. Dr. Peck has done similar studies for Coveleski Stadium, Studebaker Museum, etc. The staff recommends accepting the proposal. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission accepted the proposal from Quantech Research Associates for an Economic Impact Study of the Morris / Palais project for a cost of $2,500. p. Commission approval requested for ew Resolution No. 1170 determining to appropriate money from the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) Special Fund. Mrs. Kolata explained that the purpose of Resolution No. 1170 schedules a public hearing for 10:00 a.m. on July 16, 1993 regarding the appropriation of money to be used as follows: $391,655 to make the lease payments for the St. Joseph/Wayne Street parking garage, $356,655 for the lease payments on South Bend Central Development Area Public Improvement Project (1990), and $197,000 to make the lease payments for the Palais Royale Acquisition Project. -14- COMMISSION ACCEPTED THE PROPOSAL FROM QUANTECH RESEARCH ASSOCIATES FOR AN ECONOMIC IMPACT STUDY OF THE MORRIS /PALAIS PROJECT FOR A COST OF $2,500 South Bend Redevelopment Commission Regular Meeting - June 18, 1993 6. NEW BUSINESS (Cont.) p. continued... Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1170 determining to appropriate money from the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) Special Fund. q. Commission approval requested for Resolution No. 1172 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 ") Mrs. Kolata noted that Resolution No. 1172 sets a public hearing for 10:00 am. on July 16, 1993 to appropriate $164,000 for lease payments related to bonds in the Airport Economic Development Area. Upon a motion by Mr. Piasecld, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1172 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 ") -15- COMMISSION APPROVED RESOLUTION NO. 1170 DETERMINING TO APPROPRIATE MONEY FROM THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 1A) SPECIAL FUND COMMISSION APPROVED RESOLUTION NO. 1172 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. V) FROM THE AIRPORT ECONOMIC DEVELOPMENT AREA ALLOCATION AREA NO. 1 SPECIAL FUND ( THE "ALLOCATION FUND ") South Bend Redevelopment Commission Regular Meeting - June 18, 1993 6. NEW BUSINESS (Cont.) r. Commission approval requested for proposal from John Bamber to research historical records related to the Studebaker Corridor Development Area. Mrs. Kolata explained that Mr. Bamber has proposed to go through all the old documents, maps, etc., to determine potential environmental situations might need to be addressed in the future. He will perform the research at a rate of $50.00 per hour for 80 to 100 hours. He will report his findings to the staff after each 10 hours of work. Mr. Bamber did the research related to a cistern that was found on the Avanti property. It was very thorough and detailed and proved to be vary valuable to us. It was because of that research that we asked him for a proposal for doing the research for the rest of the Studebaker Corridor. Mrs. Kolata noted that, although we had preliminary research done in the Studebaker Corridor, it was not as comprehensive as Mr. Bamber is doing. He goes back to maps in the 1800s and finds evidence of things that did not show up on the later maps our other consultants used. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved the proposal from John Bamber to research historical records related to the Studebaker Corridor Development Area. -16- COMMISSION APPROVED THE PROPOSAL FROM JOHN BAMBER TO RESEARCH HISTORICAL RECORDS RELATED TO THE STUDEBAKER CORRIDOR DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - June 18, 1993 7. PROGRESS REPORTS Mrs. Kolata noted that we have a brochure for the PROGRESS REPORTS land in the Toll Road Industrial Park that Holladay Corporation is marketing for us. It has been mailed out locally and they have placed ads in local newspapers, advertising that we have industrial land for sale. Mrs. Kolata noted that the Redevelopment Authority intends to refinance the Airport Taxable bond which was sold in 1990. It has an interest rate of about 9.5 % and we expect we can save approximately 2 %, which would result in a savings of several hundred thousand dollars. We are doing a negotiated sale with City Securities. We expect the sale to be held on July 6. Mr. Brademas made a presentation proposing that Ark the St. Joseph County Jail be located in the present Shetland Building in the Studebaker Corridor. The current plan is to build a new jail in the Studebaker Corridor at a cost of $60,000 per inmate or a total of $31,000,000. Harris County (Houston), Texas renovated a former warehouse of similar construction at a cost of $20,000 per inmate. Mr. Brademas noted that the Feasibility Study done for us by the University of Michigan indicated that the Shetland Building was one of few in the Studebaker Corridor which had some reuse potential. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment NEXT COMMISSION MEETING Commission is scheduled for July 2, 1993 at 10:00 a.m -17- South Bend Redevelopment Commission Regular Meeting - June 18, 1993 There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Piasecki made a motion that the meeting be adjourned. Mr. Sharp seconded the motion and the meeting was adjourned at 11:41 a.m. Paula N. Auburn, President C, -18- Ann E. Kolata, Director