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HomeMy WebLinkAboutRM 07-16-93L It SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING July 16, 1993 10:00 a.m. Presiding: Paula N. Auburn President I. ROLL CALL 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 Mr. Michael Donoho Mr. Philip J. Faccenda Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Recording Secretary Media: Mr. Thom Howell, U -93 Mr. Terry Bland, South Bend Tribune Ms. Diane Daniels, WSJV -TV Mr. Mark Peterson, WNDU -TV Others: Mayor Joseph E. Kernan Mr. Kevin Horton, Controller Mr. Daniel Martin, Economics Research Assoc. Mr. James Cierzniak Mr. Carter Wolf Mr. Robert Hunt Mr. Michael Elbode 2. APPROVAL OF MIlVUTES a. Auuroval of Minutes of the Reg i` Meeting of Friday, July 2, 1993. Upon a motion by Mr. Sharp, seconded COMMISSION APPROVED THE MINUTES OF by Mr. Piasecki and unanimously THE REGULAR MEETING OF FRIDAY, carried, the Minutes of the Regular JULY 2, 1993 Meeting of Friday, July 2, 1993 were approved. 4- South Bend Redevelopment Commission Regular Meeting - July 16, 1993 3. APPROVAL OF CLAIMS Claims submitted for approval July 16, 1993: -0�O 41%] Cleo Hickey $ 64.38 Hedy Robinson 56.99 South Bend Tribune 55.16 Global Computer Supplies 54.00 American Planning Association 175.00 Equipment Services 29.66 Gene's Camera Store 16.90 Shilts Graves & Associates Inc. 49.50 Tri- County News 52.59 Petty Cash Reimbursement 70.49 Chamber of Commerce 112.50 Total Admin. 1993 $ 737.17 K 103 MY10 : • ►I�� Peirce & Associates $ 95.00 York Title 150.00 Total Studebaker Bond $ 245.00 BOND ANTICIPATION NOTE Gerard Hilferty Associates $ 54,080.00 Total Bond Anticipation Note $ 54,080.00 SAMPLE -EWING TIF Lafree Excavating $ 20,118.00 St. Joseph County Clerk 72,680.94 Total Sample -Ewing TIF $ 92,798.94 -2- South Bend Redevelopment Commission Regular Meeting - July 16, 1993 3. APPROVAL OF CLAIMS (Cont.) SBCDA TIF DEBT SERVICE Corporate Trust Banc One Total SBCDA TIF Debt Service SBCDA TIF GENERAL McCloskey & Pitts Baer Barkley & Co. Total SBCDA TIF General GRAND TOTAL Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Claims submitted July 16, 1993. 4. COMMUNICATIONS Mrs. Kolata noted that there were Communications received related to item 6.b. which will be reported during the consideration of item 6.b. Mrs. Kolata asked permission consider item 6.a. at this time. There was no objection and item 6.a. was so moved. 6. NEW BUSINESS a. Report from Economics Research Associates on Economic Impact Study of College Football Hall of Fame. -3- $ 278.881.63 $ 278,881.63 • 111 11 1:1 11 $ 1100.00 $ 437.822.74 COMMISSION APPROVED CLAIMS SUBMITTED JULY 16, 1993 COMMUNICATIONS TO BE REPORTED DURING DISCUSSION OF ITEM 6.B. South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) a. continued... Mr. Horton noted that the Commission entered into a contract with Economic Research Associates to develop a feasibility study for the College Football Hall of Fame. We wanted to verify the numbers we had developed for our own benefit. Also, in order to sell a bond for the Hall of Fame, the bond bidders will want to have an independent study verifying that the project is feasible. Mr. Martin, from the Chicago office of Economic Research Associates, distributed copies of the written report from Economic Research Associates. Mr. Martin explained that Economic Research Associates has offices all over the country and many of those offices contributed to the information in the report. Economic Research Associates originally began to serve Walt Disney's needs for market research. They have done research for almost every new type of attraction, including water parks, Mississippi gaming boats, Georgia's Music Hall of Fame, the Rock and Roll Hall of Fame, an Olympic Hall of Fame, Madame Tussaud's Wax Museum in London. They have done approximately 11,000 assignments in their 35 -year existence, approximately one -third of which have been for specialty attractions. -4- South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) a. continued... The conclusions of the report are that the development of the College Football Hall of Fame, as currently proposed on a site in the City of South Bend, Indiana, would result in a specialty attraction that is projected to: 1. Draw approximately 162,000 attendees in its first year and begin drawing over 195,000 in its sixth year. 2. Generate approximately $2,000,000 in earned operating revenues in its first year and close to $2,500,000 in earned operating revenues in its tenth year (following a short decline to approximately $1,900,000 in years two and three). 3. Incur an approximate annual average of $1,900,000 in operating expenses. 4. Attain an operating income of approximately $155,000 in year one. Following a short decline for years two and three, it will begin increasing to approximately $540,000 to $560,000 in years six and beyond. 5. These figures do not include the initial development costs nor an annual new exhibits development fund. Ms. Auburn asked if ERA ever found that some of the proposed halls of fame or other attractions would not be successful. Mr. Martin responded that -5- South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) a. continued... they do make negative recommendations. About one -third of their recommendations are negative, about one -third emerge very differently than they were proposed, and another one -third receive positive recommendations. Mr. Martin noted that this College Football Hall of Fame project falls into the third category—a positive recommendation. They suggest some subtle changes to the proposed project, such as broadening the focus to include more eg neral football exhibits as well as college football exhibits. Mr. Martin explained the decline in attendance expected in years two and three. There are different categories of attendance. In the first year, most of the attendance will come from the local market. It will take some time for word to spread nationally that this attraction is here and worth seeing. So, between the time the local market declines and the time the national market takes over, there will be a couple of years of decline. Mr. Piasecki asked if Mr. Martin could explain the failure of the College Football Hall of Fame in Cincinnati. Mr. Martin noted that he had visited that facility as part of his research. In talking with people there, it appears that Fa South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) a. continued... their exhibitry was not very good and it was not well marketed. Its location is odd. It would seem that being next to a theme park would be positive. In this case it was not. From a driving perspective, it was beyond the theme park. The theme park is an all day attraction. The hall of fame was not included in the gate price. Attractions with a separate gate often do not do well outside of theme parks. It was not compatibly themed. Ms. Auburn asked what the particular APIN competitive advantages of this project are over other competing attractions. Mr. Martin responded that this is a one- of -a -kind attraction. It is very distinctive. As a one -of -a -kind, you can pitch to your market without much competition. It is an attraction that appeals to a national market. South Bend is located in the heart of football territory. However, marketing must emphasize that the hall of fame does not represent Notre Dame exclusively or particularly. Mr. Horton noted that the City is impressed with the analytical approach of Economic Research Associates and their conservative nature. Mr. Martin noted that the report contains a disclaimer which says they -7- South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) a. continued... cannot warrant the information because they collected it from other people. Mr. Sharp asked if the operating income in the first few years is particularly narrow. Mayor Kernan responded that those numbers are conservatively in line with the City's own projections. Ms. Auburn stated that the Commission receives the report from Economic Research Associates on the College Football Hall of Fame. Allk 5. OLD BUSINESS a. Commission approval requested for Resolution No. 1167 approving an application for personal propert y tax deduction for property located at 251 E. Sample Street in the South Bend Central Development Area. ( Ziker Cleaners) Mrs. Kolata noted that Ziker Cleaners has withdrawn their application for personal property tax abatement. b. Commission approval requested for proposals for appraisal services in the Sample-Ewing g evelopment Area. Mrs. Kolata noted that we received proposals from several appraisers for the appraisals we need to have done in the Sample -Ewing Development Area. There was a staff report outlining a In APPLICATION FOR TAX ABATEMENT WITHDRAWN BY ZIKER CLEANERS South Bend Redevelopment Commission Regular Meeting - July 16, 1993 5. OLD BUSINESS (Cont.) b. continued... complicated assignment of work to McCloskey Pitts, Jerome Michaels, Alberta Husband at Appraisals Unlimited, Douglas Carpenter, and Al Kapitan for the costs shown. The total cost for two appraisals for each piece of property between Michigan Street, Fellows Street, Sample Street and the alley north of Broadway is approximately $114,000 - $115,000. Upon a motion by Mr. Sharp, seconded by Mr. Faccenda and unanimously carried, the Commission approved the proposals from McCloskey Pitts, Jerome Michaels, Alberta Husband at Appraisals Unlimited, Douglas Carpenter, and Al Kapitan for appraisal services in the Sample -Ewing Development Area. 6. NEW BUSINESS (Cont.) b. Staff Report on Disposition of Land for Disposition Parcels C4 -46 and C4 -65 in the South Bend Central Development Area. Mrs. Kolata noted that Trammell Crow submitted a bid for the two parcels on July 2. They plan to construct two 60,000 square foot, four -story office buildings in two phases along Michigan and Main streets. They submitted an offer to purchase a building pad of 25,200 square feet located on the 0 COMMISSION APPROVED THE PROPOSALS FROM MCCLOSKEY PITTS, JEROME MICHAELS, ALBERTA HUSBAND AT APPRAISALS UNLIMITED, DOUGLAS CARPENTER AND AL KAPITAN FOR APPRAISAL SERVICES IN THE SAMPLE - EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) b. continued... Transpo Lot and with an option to purchase a second 25,200 square foot building pad on the Shoppers Lot. They offered $112,140 for the first building pad, based on the minimum offering price of $4.45 per square foot. Mrs. Kolata noted that the proposed schedule, if the bid is accepted today, is to execute a Contract for Sale of Land within one month, prepare marketing materials within two months, receive formal commitments from tenants for 80% of the building by January 1994, completion of drawings and specifications and ground breaking by March 1994, and completion by mid - November 1994. Mrs. Kolata stated that the proposal included a letter from the Multi - employer Property Trust to finance the first building, contingent upon the developer meeting the preleasing requirement. The developer is requesting that the City build and maintain the public plaza: two - thirds in connection with phase one ($421,000) and the remaining one -third with phase two ($183,000). They have also asked the City to provide a total of 400 parking spaces in a parking garage that they suggest be located immediately east of the Teachers Credit Union Building and to provide -10- South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) b. continued... tax abatement normally provided to projects of this size. The architectural plans submitted with the proposal are conceptual, giving an indication of what the buildings and plaza might look like. They are not 100 % final. Mrs. Kolata noted that the staff found a number of issues during its review: 1) Can the developer guarantee that the second building will be constructed within a reasonable amount of time? The Commission might want to put a deadline on the option for the second parcel of land. 2) There may be some technical details that need to be worked out in order to meet the City's subdivision ordinance related to the zero lot line. 3) The City requested the public plaza, but did not dictate its location. The proposed design may need to be reconsidered. The City must address the long term need for short term surface parking. 4) The Commission does not approve the City's tax abatements. It can only make a favorable recommendation to the City Council. 5) The developer proposed that the plaza be maintained by the City. The staff does not believe that is a good idea. 6) The Michigan Street retail study, coordinated by Center City Associates, recommended that first floor uses along Michigan Street should be -11- South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) b. continued... retail. This issue needs to be resolved related to the phase two office building and the parking garage. 7) The Sale of Land is conditional upon the conveyance of the Transpo Lot to the Commission and the relocation of Transpo. 8) We need to make arrangements to accommodate a parking garage on the east side of the Teachers Credit Union Building. The City has an obligation to build parking for them on that lot. We currently have a lease - purchase agreement with them for that lot. The staff has met with Teachers Credit Union recently about building a garage to accommodate their needs as well as this project's needs. Although we feel that the meetings were successful and that we can move forward, there are a number of details that must be worked out. Mrs. Kolata noted that the Joint Development Committee met earlier today and determined that the proposed project of Trammell Crow meets the necessary criteria for a development on that site and recommended that the Redevelopment Commission accept the proposal from Trammell Crow. The staff recommends that the Commission accept the proposal, subject to a number of details: 1) Finalizing details on the proposed parking garage and plaza; 2) a successful issuance of TIF bonds necessary to finance the parking garage -12- South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) b. continued... and plaza; 3) negotiating an option to purchase the property for the second building; 4) the developer must work with the Commission and provide design and construction specifications for the plaza improvements; and 5) the developer should maintain the plaza. Ms. Auburn noted that this project has generated a lot of interest from businesses in the downtown. The Commission has received letters in support of the project, but expressing concern for the short term parking needs of the downtown merchants and the desire for first floor retail in any buildings along Michigan Street. Mrs. Kolata noted that the Commission received Communications from Bob Hunt, Gilberts; Michael Majerek, Hall of Cards and Books; Keith Herbrand, Osco Drugs, and Ronald Goodwin, Insty - Prints. All mention the need to have convenient, short term parking available for their customers. Some mention the need for first floor retail along Michigan Street. Copies of these letters are attached to these minutes. Mr. Wolf complimented the staff for addressing the concerns of the downtown merchants expressed in their letters. He acknowledged that it is impossible to satisfy everyone's need. But he expressed hope that we can come -13- South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) b. continued... up with some creative ways to solve the potential problems. Upon a motion by Mr. Faccenda, seconded by Mr. Piasecki and unanimously carried, the Commission accepted the proposal from Trammell Crow for Disposition Parcels C4 -46 and C4 -65 in the South Bend Central Development Area subject to negotiating the option for parcel C4 -46, securing bond financing for the garage and public plaza, negotiating the design and specifications for the public plaza, and Trammel Crow agreeing to maintain the public plaza. c. Public Hearing on Resolution No. 1171, a Supplemental Appropriation Resolution of the City of South Bend Redevelopment Commission. (South Bend Central Development Area) Mrs. Kolata noted that there are three supplemental appropriation resolutions for consideration today and a public hearing for each. Resolution No. 1171 is for lease payments on three Redevelopment Authority lease rental bonds in the South Bend Central Development Area (St.Joseph/Wayne Street Garage, the Palais Royale, and the 1990 Public Improvement Project). The payments total $945,310. Resolution No. 1173 appropriates $164,000 for lease payments on the -14- COMMISSION APPROVED THE PROPOSAL FROM TRAMMELL CROW FOR DISPOSITION PARCELS C4-46 AND C4-65 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA SUBJECT TO NEGOTIATING THE OPTION FOR PARCEL C4-46, SECURING BOND FINANCING FOR THE GARAGE AND PUBLIC PLAZA, NEGOTIATING THE DESIGN AND SPECIFICATIONS FOR THE PUBLIC PLAZA, AND TRAMMEL CROW AGREEING TO MAINTAIN THE PUBLIC PLAZA South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) C. continued... Airport tax exempt bond issue. Resolution No. 1175 appropriates $41,661.75 in the Sample -Ewing Development Area. This is money received by the Commission as part of the purchase of the Avanti Building. Some money was put into escrow to cover clean-up of environmental conditions. We submitted bills to the escrow account and have received payment of $41,661.75. This appropriates the money so it can be spent. Mrs. Kolata noted that we have received affidavits that the Notice of Public Hearing was published in the South Bend Tribune and the Tri- County News. Ms. Auburn asked if there was any objection to the affidavits being entered into the record. There was no objection and they were so entered. Ms. Auburn opened the Public Hearing on Resolution No. 1171. There was no one who wished to speak. Ms. Auburn closed the Public Hearing. d. Commission approval requested for Resolution No. 1171. Upon a motion by Mr. Faccenda, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1171, a -15- PUBLIC HEARING ON RESOLUTION NO. 1171 COMMISSION APPROVED RESOLUTION NO. 1171, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION. (SOUTH BEND CENTRAL DEVELOPMENT AREA) South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) d. continued... Supplemental Appropriation Resolution of the City of South Bend Redevelopment Commission. (South Bend Central Development Area) e. Public Hearing on Resolution No. 1173, a Supplemental Appropriation Resolution of the City of South Bend Redevelopment Commission. (Airport Economic Development Area) Mrs. Kolata noted that we have received affidavits that the Notice of Public Hearing was published in the South Bend Tribune and the Tri- County News. Ms. Auburn asked if there was any objection to the affidavits being entered into the record. There was no objection and they were so entered. Ms. Auburn opened the Public Hearing PUBLIC HEARING ON RESOLUTION NO. 1173 on Resolution No. 1173. There was no one who wished to speak. Ms. Auburn closed the Public Hearing. f. Commission approval requested for Resolution No. 1173. Upon a motion by Mr. Sharp, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1173, a Supplemental Appropriation Resolution of the City of -16- COMMISSION APPROVED RESOLUTION NO. 1173, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION. (AIRPORT ECONOMIC DEVELOPMENT AREA) South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) f. continued... South Bend Redevelopment Commission. (Airport Economic Development Area) g. Public Hearing on Resolution No. 1175, a Supplemental Appropriation Resolution of the City of South Bend Redevelopment Commission. (Sample - Ewing Development Area) Mrs. Kolata noted that we have received affidavits that the Notice of Public Hearing was published in the South Bend Tribune and the Tri- County News. Ms. Auburn asked if there was any objection to the affidavits being entered into the record. There was no objection and they were so entered. Ms. Auburn opened the Public Hearing on Resolution No. 1175. There was no one who wished to speak. Ms. Auburn closed the Public Hearing. h. Commission approval requested for Resolution No. 1175. Upon a motion by Mr. Faccenda, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1175, a Supplemental Appropriation Resolution of the City of South Bend -17- PUBLIC HEARING ON RESOLUTION NO. 1175 COMMISSION APPROVED RESOLUTION NO. 1175, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION. (SAMPLE - EWING DEVELOPMENT AREA) South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) h. continued... Redevelopment Commission. (Sample - Ewing Development Area) i. Commission approval requested for Resolution No. 1180 =roving the execution of an addendum to the Lease dated as of Auzust , 1990, between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority for certain land and public improvements located thereon. Mrs. Kolata explained that the Redevelopment Authority has refinanced the taxable Airport bond issue. Based on that refinancing, the payment schedule for the Commission's lease payments is being revised. The new payment schedule is outlined in this resolution. The bond sale was last week. The closing will be July 27, 1993. The estimated savings is approximately $680,000, which has a present value of approximately $520,000. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1180 approving the execution of an addendum to the Lease dated as of August 1, 1990, between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority for certain land and public improvements located thereon. -18- COMMISSION APPROVED RESOLUTION NO. 1180 APPROVING THE EXECUTION OF AN ADDENDUM TO THE LEASE DATED AS OF AUGUST 1, 1990, BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE SOUTH BEND REDEVELOPMENT AUTHORITY FOR CERTAIN LAND AND PUBLIC IMPROVEMENTS LOCATED THEREON South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) j. Commission approval requested for Resolution No. 1181 establishing certain funds and accounts in connection with the Lease dated as of August 1, 1990, as amended and restated by an Addendum dated as of December 21. 1990, as further amended by an Addendum dated as of January 29. 1991, and as further amended by an Addendum to Lease dated February 5. 1993 between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority. Mrs. Kolata explained that Resolution No. 1181 is called a pledge resolution in which the Commission promises to make the lease payments, based on the new lease, and in which the Commission promises that if there are not enough funds to make the payments the Commission will levy a tax to get the funds necessary to make the payments. These bonds are structured to be paid from tax increment so a tax levy should not be necessary. A similar resolution is already on file related to the former lease. This resolution amends that to reflect the new lease. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1181 establishing certain funds and accounts in connection with the Lease dated as of August 1, 1990, as amended and restated by an Addendum dated as of -19- South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) j. continued... December 21, 1990, as further amended by an Addendum dated as of January 29, 1991, and as further amended by an Addendum to Lease dated February 5, 1993 between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority. k. Commission approval requested for Resolution No. 1182 aproving the execution of an Addendum to the Lease for the Airport Economic Development Area Taxable and Public Improvement Project. Mrs. Kolata explained that Resolution No. 1182 amends the Lease for the taxable Airport bond by adding a piece of property as a project to be acquired. The property is approximately nineteen acres of land at the U.S. 31 By -pass and the Indiana Toll Road. It is part of the land the Toll Road is acquiring for the construction of the west ramp, but there will be 19.6 acres left over. This refunding of the bond, not only refinances the original bond, but includes money for the acquisition of this parcel. Upon a motion by Mr. Faccenda, COMMISSION APPROVED RESOLUTION NO. seconded by Mr. Sharp and 1182 APPROVING THE EXECUTION OF AN unanimously carried, the Commission ADDENDUM TO THE LEASE FOR THE approved Resolution No. 1182 AIRPORT ECONOMIC DEVELOPMENT AREA TAXABLE AND PUBLIC IMPROVEMENT approving the execution of an PROJECT Addendum to the Lease for the Airport -20- South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) k. continued... Economic Development Area Taxable and Public Improvement Project. 1. Commission authorization requested for letter to Evensen Dodge Inc. re�g financial records for South Bend Central Development Area. Mrs. Kolata explained that Richard Treptow has been our financial advisor through Evensen Dodge Inc. for a number of years. He has recently left Evensen Dodge and started his own company. We are notifying Evensen Dodge that we will not be using their services in the foreseeable future and asking them to provide us with all South Bend Redevelopment Commission files and documents in their possession. Due to the limited physical capacity of our offices, we would like them to be sent to Dick Treptow's firm and stored there on our behalf. This letter makes that request. Dick Treptow created all of the files and documents and we want them to stay with him. Upon a motion by Mr. Sharp, seconded by Mr. Faccenda and unanimously carried, the Commission authorized the letter to Evensen Dodge Inc. regarding financial records for South Bend Central Development Area. IP e COMMISSION AUTHORIZED THE LETTER TO EVENSEN DODGE INC. REGARDING FINANCIAL RECORDS FOR SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) m. Commission authorization requested to seek proposals for purchase and relocation of the former Policemen's Federal Credit Union Building. Mrs. Kolata explained that the legal notice provides for bids to be received by 10:00 a.m. on August 20 to purchase and relocate the former Policemen's Federal Credit Union building. We have had three serious inquiries into the possibility of purchasing the building and moving it. The building is in good condition. The value listed is a value based on the appraisals we had done for acquisition of the property, minus the land value. We don't expect to get a proposal for that amount since whoever takes it must incur the cost of moving it. The specifications require the bidder to completely remove all foundations and clear the land completely. Mrs. Kolata noted that if we do not receive any firm bids to move the building we will probably demolish it. Upon a motion by Mr. Piasecki, seconded by Mr. Faccenda and unanimously carried, the Commission authorized the staff to seek proposals for purchase and relocation of the former Policemen's Federal Credit Union Building. n. Receipt of bids for Disposition Parcel M18 -5 in the South Bend Central Development Area. (516 S. St. Joseph Street) -22- COMMISSION AUTHORIZED THE STAFF TO SEEK PROPOSALS FOR PURCHASE AND RELOCATION OF THE FORMER POLICEMEN'S FEDERAL CREDIT UNION BUILDING South Bend Redevelopment Commission Regular Meeting - July 16, 1993 6. NEW BUSINESS (Cont.) n. continued... Mrs. Kolata noted that we received a proposal from Anthony Murdock for the property at 516 S. St. Joseph Street. He proposes to pay $100 for the property and to rehab it within approximately 15 months. He intends to repair the roof, install new interior drywall and ceilings, new plumbing, new heating system, ventilating and air conditioning, new accessories and fixtures, new electrical, new concrete on the exterior, new fence, etc. He has experience in construction and is a civil engineer and feels that he can complete the project. Mr. Murdock stated that a reputable lending source in Michiana has basically committed to funding the project for him. Upon inspection by the lender he feels that the project can move forward to completion on the schedule he proposed. The Commission received the bid and referred it to staff for their recommendation. 7. PROGRESS REPORTS There were no Progress Reports. 8. NEXT COMMISSION MEETING The Next Regular Meeting of the Redevelopment Commission is scheduled for Friday, August 6, 1993 at 10:00 a.m. -23- RECEIPT OF BIDS FOR DISPOSITION PARCEL M18 -5 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (516 S. ST. JOSEPH STREET) THERE WERE NO PROGRESS REPORTS NEXT COMMISSION MEETING South Bend Redevelopment Commission Regular Meeting - July 16, 1993 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Sharp made a motion that the meeting be adjourned. Mr. Faccenda seconded the motion and the meeting was adjourned at 11:30 a.m. " /y Paula N. Auburn, President ADJOURNMENT ®l Ann E. Kolata, Director -24- gilbeftsP.O. Box 1715 / South Bend, IN 46634 / (219) 289 -5521 July 14, 1993 Ms. Paula Auburn 1200 County -City Building South Bend, IN 46601 Dear Paula, The recent announcement of a two stage office complex to be built on Jefferson between Main and Michigan is great news for the community, and particularly those of us in Downtown. In the euphoria of seeing this half block fin- ally being filled, I hope we don't lose sight of two important elements which should be in- corporated in the development plan. 1. The growth of working population and the increased traffic by the users of these buildings will increase the demand for both short term and long term parking. At the same time we lose a substantial number of parking places on the Shoppers Lot. 2. The recent retail study funded partially by the city noted the lack of small leas- able retail space, particularly along Michigan Street. Hopefully, the develop- ers can see the demand for this type of ground level space and incorporate it in their plans. Since we have waited patiently for these many years for this type of solid development, I hope the Redevelopment Commission can insist these problems be addressed. Continued.... "One Man Tells Another" Page 2 Congratulations to you and your commission for continued success. Best personal regards. Very truly yours, n.� I14T Rob t W. Hunt cc: Jon Hunt <the Dear Mr. Hunt, 1 wanted to drop you a short letter expressing my excitem Bend's planned expansion of office space across from my store. As manager of the downtown Osco Drug Store, I am happy to see the potential for growth in the downtown area which wiN increase my customer count during the usual lunch hour rush. The new businesses which will settle in these offices will be a source of growth for all of the retail merchants located in the downtown area. I am concerned that part of the building plan would mean the loss of the shoppers' parking lot just west of Michigan street. I realize this is prime real estate for offices, and it should be developed, but the loss of more parking is a real issue with the downtown merchants. The loss of another convenient parking area will further drive the consumer, who would like to shop downtown, away to the malls. As it is now, during the lunch hours, it is not unusual to see cars drive by my store seveal times looking for a parking spot just so they can run in and buy a few things. The parking available right in front of my store on Michigan street is never enough for all the cars during the day. Without the shoppers lot to give the consumers another alternative many would simply never stop at my store or any of the other small businesses downtown. As I stated earlier I am pleased with the prospect of growth in the downtown area, but I do hope the city is not going to solve the parking problem by building yet another parking garage. I am afraid that the customers who shop in this Oscos will not take the time or the inconvenience to park in a high rise parking garage to purchase a greeting card and a pack of gum. I fear they will not stop at all. I hope the plans being drawn up at this time have a potential solution for the parking problem. The shortage of parking space is already a problem for my store, any further reduction could become a serious obstacle for our future growth at this location. I would appreciate any information you might share about the city's plans on this important issue facing the downtown merchants. Yours Truly, Keith Herbrand General Manager, Osco Drug SIT all of (Parris and Oooks Cgnc. Hallmark Cards, Books, Magazines, Gifts Ms. Paula Auburn President Redevelopment Commission 1200 County City Building South Bend, IN 46601 Dear Paula, rnr. � tr ��i I am very excited about the new office building being built by the Trammell Crow Company. It is a move that is needed to bring traffic flow into the Great South Bend Area. We have been a believer in the South Bend Downtown and have been a part of it for many years. Our wishes are to continue to grow with the Downtown South Bend and the Trammell Crow Company. We have some concern with the proposal in two ways. Our short term parking will be eliminated which will kill our business. We need help in every way to attract people downtown, but if we cannot park their cars we would be forced to close our doors. It is a very major concern for Majerek's Hallmark and Readers World, I would hate to be forced to move after so many years. The second concern is a complete total office building with no outside retail space. We would like to see retail space on the bottom floor to attract shoppers and a diversified retail mix to the down town. Again we love the idea but we do not it to go through without great thought for the future of the downtown retailing. We need more short term parking and smaller spaces for niche retailers to move more people to downtown. We know South Bend Works Downtown and South Bend Plays Downtown now lets get South Bend to Shop Downtown. Sincerely, i Michael J. Majerei� President •/ cc: John Hunt Ann Kalata Mayor Joe Kernan Carter Wolf 313 East Main Street Niles, Michigan 49120 616 684 -5115 FAX 616 684 -8428 lt INSTY PRINTS BUSINESS PRINTING SERVICES July 12, 1993 129 South Lafayette Blvd. • South Bend, IN 46601 Phone 219 - 289 -6977 • Fax 219 - 289 -6980 Mr. John Hunt Dept.of Economic Development County -City Building South Bend, IN 46601 Dear John: I heard the City is selling the Transpo lot and the Shopper lot to the Colfax Group who are planning an office building and parking lot for their customers and employees. This will put at least 80 cars out on the street that are now in the Shoppers Lot daily. As you well know parking is a real problem in the downtown business district already. Another proposed parking garage in this area is not in the immediate future and is not a place most short -term shoppers want to go anyway. They prefer surface parking which they can get at Edison Lakes or any mall. I understand there are plans 2 blocks. It would make much for on- street parking, either parking around these 2 blocks probably accommodate as many from the Shoppers Lot. to make a plaza around these more sense to provide perpendicular or angle for 1 -2 hours. You could cars as would be dispossessed If South Bend Works Downtown and South Bend Plays Downtown, why can't South Bend Park Downtown? Please give this your serious consideration. Ver truly yours, R NALD GOODWIN cc: Joseph Kernan Carter Wolf