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HomeMy WebLinkAboutRM 08-20-93SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 20, 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 Members Absent: Mr. Philip Faccenda Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mr. Jon R. Hunt, Executive Director Mrs. Cheryl Phipps, Recording Secretary Mr. Michael Beitzinger, Economic Dev. Specialist Mr. James Riggs, Economic Dev. Specialist Mr. Gabriel Okafor, Economic Dev. Specialist Mr. Thomas Eddington, Economic Dev. Specialist Bureau of Housing Staff: Ms. Mary Richmond, Asst. Director Media: Mr. Thom Howell, U -93 Mr. Don Porter, South Bend Tribune Others: Mr. Carter Wolf, Center City Associates Mr. Jim Knepp Mr. Steve Henschon, Bonar & Associates Mr. Mark Witucki, Solvay Automotive Ms. Mary Barbosa- Marshall, Mr. Dave Whittlesey, J. F. New Associates 2. APPROVAL OF MINUTES a. AWroval of Minutes of the Regular Meeting of Friday, August 6, 1993. -1- South Bend Redevelopment Commission Regular Meeting - August 20, 1993 2. APPROVAL OF MINUTES (Cont.) a. continued... Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Minutes of the Regular Meeting of August 6, 1993. 3. APPROVAL OF CLAIMS Claims submitted for approval August 20, 1993° u 71290 COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF AUGUST 6, 1993 Global Computer Supplies $ 54.00 Makielski Art Supplies 74.65 Gene's Camera Shop 22.58 Equipment Services 14.65 Equipment Services 74.07 Printing General Fund 90.91 Marathon Pipe Line Co. 150.00 Business Communication Center 30.00 Total Admin 1993 $ 510.86 STUDEBAKER CORRIDOR ( #421) John Bamber $ 1,075.00 Policemen's Federal Credit Union 13,580.61 Total Studebaker Corridor ( #421) $ 14,655.61 BOND ANTICIPATION NOTE ( #437) Sculpture Basic Inc. $ 6,600.00 Gerard Hilferty & Assoc. 55,535.37 Total Bond Anticipation Note $ 62,135.37 -2- South Bend Redevelopment Commission Regular Meeting - August 20, 1993 3. APPROVAL OF CLAIMS (Cont.) SBCDA TIF GENERAL City Awning Total SBCDA TIF General REDEVELOPMENT GENERAL ( #433) The Troyer Group The Troyer Group The Troyer Group Policemen's Federal Credit Union Total Redevelopment General SAMPLE EWING ( #414) York Title Total Sample Ewing GRAND TOTAL Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Claims submitted August 20, 1993. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS a. Commission approval requested for Resolution No. 1185 approving an =lication for personal property tax deduction for property located at 1827 -3- $ 185.00 $ 185.00 $ 57.62 6,175.00 817.00 10.334.39 $ 17,384.01 $ 7.560.00 $ 7,560.00 $ 102.430.85 COMMISSION APPROVED THE CLAIMS SUBMITTED AUGUST 20, 1993 THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Regular Meeting - August 20, 1993 5. OLD BUSINESS (Cont.) a. continued... N. Bendix Drive in the Airport Economic Development Area. (Solvay Automotive, Inc.) Mr. Beitzinger gave the staff report on the project. Solvay Automotive is a manufacturer of high density polyethylene fuel tanks for the automotive industry. Their project calls for the purchase and installation of manufacturing equipment to produce plastic fuel tanks for Chrysler and plastic parts for Ford. It is anticipated that the project will generate $42,000,000 in additional sales. The total projected cost of the equipment is $12,000,000. The project will create eighty -seven new permanent, full-time jobs in the first year, representing an annual payroll of $1,580,000 and will maintain two hundred ninety existing permanent, full- time and existing part-time jobs with an annual payroll of $7,700,000. The property is properly zoned for the proposed use. The property is not located in an area presently designated as a Tax Abatement Impact Area. The property is, however, located in the Airport Economic Development 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. Solvay was granted a five year personal property tax abatement on -4- South Bend Redevelopment Commission Regular Meeting - August 20, 1993 5. OLD BUSINESS (Cont.) a. continued... July 22, 1991 and is in compliance with the reporting requirements for that abatement. Without abatement, the $12,000,000 worth of equipment would generate approximately $1,117,090 of new taxes over the five year period. With abatement, the project will generate approximately $198,082 in new taxes. Therefore, the cost of the abatement is approximately $919,008 over the five year period. Mr. Witucki, Solvay Automotive, noted AWN that Solvay will secure three contracts with the installation of this equipment: for the Chrysler NS mini -van; for a car to replace the Ford Tempo /Topaz; and for Chrysler's JA car which will replace the Plymouth Acclaim. Mr. Piasecki asked if Solvay was the only manufacturer of this type of gas tank. Mr. Witucki responded that they have three or four competitors in the U.S. as well as some in Europe. Mr. Sharp asked the term of the contracts. Mr. Witucki responded that the contracts are one year contracts, which would be expected to be renewed. 512 South Bend Redevelopment Commission Regular Meeting - August 20, 1993 5. OLD BUSINESS (Cont.) a. continued... Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1185 approving an application for personal property tax deduction for property located at 1827 N. Bendix Drive in the Airport Economic Development Area. (Solvay Automotive, Inc.) 6. NEW BUSINESS a. Receipt of bids for Policemen's Federal Credit Union building. No bids were received as of 10:00 a.m b. Presentation of Blackthorn Drainage Study v Bonar & Associates and J. F. New Associates for the Airport Economic Development Area. (Wetlands Study) Mr. Riggs noted that Blackthorn Corporate Park has been envisioned to be developed in a natural setting. Part of that concept has been to use wetlands for storm water retention as opposed to using a drainage ditch. Bonar & Associates was hired, along with J. F. New, to look at the feasibility of building a natural wetland for that purpose. They have developed a conceptual plan and cost estimates for development of a wetland. COMMISSION APPROVED RESOLUTION NO. 1185 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1827 N. BENDIX DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (SOLVAY AUTOMOTIVE, INC.) NO BIDS WERE RECEIVED AS OF 10:00 A.M. South Bend Redevelopment Commission Regular Meeting - August 20, 1993 6. NEW BUSINESS (Cont.) b. continued... Dave Whittlesey, J. F. New Associates, explained the concept. He noted that all developments must address the problem of storm water retention. A wetland is a shallow body of water which varies in depth. Although storm water can be directed to a wetland and allowed to slowly drain through the soil, they are proposing a system to both store and treat storm water, a permanent body of water where native wetland plants and animals would thrive. This body of water would be part of a park -like area which would be an amenity to the site and a place to both store and treat storm water. V, Mr. Whittlesey explained that they have included a small retention pond above the wetland to help control the amount of water that goes into the wetland during a heavy storm. The benefits of a wetland over a traditional storm water retention basin are: 1) the properties surrounding a water amenity like a wetland are more valuable; 2) surrounding developments could direct their storm water to this wetland and not need to use their own land for a separate retention basin; 3) lower maintenance cost; and 4) wetland mitigation banking — creating a wetland now which can be used to offset the possible destruction of a wetland in the future. Federal law mandates that new wetlands be created to replace any that -7- South Bend Redevelopment Commission Regular Meeting - August 20, 1993 6. NEW BUSINESS (Cont.) b. continued... are destroyed. This new wetland could be "credited" for the future with the Corps of Engineers. Mr. Whittlesey addressed the issue of mosquito control. Mosquito control is more of a problem in temporary bodies of water (puddles) where there are no predators to them. A natural wetland contains the animals that feed on mosquito larvae. The cost estimates which were developed for this system are deliberately estimated high, trying to include all possible costs ARK which could develop during construction. Therefore, the cost estimate of $500,000 to $600,000 could be significantly lower. The proposed location for the wetlands is across Nimtz Parkway from the Blackthorn Clubhouse. Mr. Hunt noted that the Blackthorn construction budget does not include funds for the construction of a wetland. However, there are opportunities at the federal and state levels to apply for grants. We have been looking into those opportunities. Ms. Auburn asked if there are other corporate parks that have used a wetland for storm water retention. Mr. Whittlesey responded that J. F. New has worked with two, but they are not much In South Bend Redevelopment Commission Regular Meeting - August 20, 1993 6. NEW BUSINESS (Cont.) b. continued... further along than this one. One is in West Lafayette. It is not far enough along to compare advantages or disadvantages. This concept is at the cutting edge of wetland development. C. Commission approval requested for Resolution No. 1188 approving an application for personal property tax deduction for property located at 3515 Boland Drive in the Airport Economic Development Area. (Society Equipment Leasing Company for the benefit of American Tool and Die) Mr. Beitzinger gave the staff report on the project. American Tool and Die makes precision products with state of the art computer controlled machinery and lathes. They intend to purchase a DeVieg Jig Mill 3 axis CNC for a cost of $252,000. The project will create two new permanent, full-time jobs, representing an annual payroll of $90,000 and will maintain thirty -three existing, permanent, full-time and part- time jobs with an annual payroll of $1,370,000. Mr. Beitzinger noted that the financing packages offered by banks, especially through leasing, have become more popular. Dan Turner, State Board of Tax Commissioners, has supplied a letter indicating that a tax abatement can be obtained by whichever party pays the taxes on new equipment in such a case. In South Bend Redevelopment Commission Regular Meeting - August 20, 1993 6. NEW BUSINESS (Cont.) C. continued... The property is properly zoned for the proposed use. The property is not located in a Tax Abatement Impact Area, but is in the Airport Economic Development 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. American Tool & Die was granted a five year personal property tax abatement on June 25, 1984 and a three year real property tax abatement on May 22, 1989 and is in compliance with the reporting requirements for those abatements. Without abatement the new equipment would generate approximately $22,854 in new taxes over the five year period. With abatement the new taxes would be approximately $4,052. Therefore, the cost of the abatement would be approximately $18,802 over the five year period. Mr. Knepp, representing American Tool and Die, noted that American Tool and Die moved to the Airport Industrial Park with eight employees with a payroll of about $200,000. They now have 33 employees and a payroll approaching $1,400,000. They have been a very stable, growing company. Their success is due in part to the Commission allowing tax abatements in the past. The -10- Aws South Bend Redevelopment Commission Regular Meeting - August 20, 1993 6. NEW BUSINESS (Cont.) C. continued... feasibility of this project depends on the ability to obtain tax abatement. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1188 approving an application for personal property tax deduction for property located at 3515 Boland Drive in the Airport Economic Development Area. (Society Equipment Leasing Company for the benefit of American Tool and Die) d. Report on proposals received for Real Estate Services for Commission. Mr. Hunt asked that item 6.d. be tabled. e. Commission avnroval reauested for Agreement for professional services in the South Bend Central Development Area. (Walker Parking Consultants/Engineers) Mr. Eddington explained that Walker Parking Consultants has proposed to do a functional design for the parking garage to be built at the corner of Washington and Michigan streets in conjunction with the Trammell Crow development. They have proposed a not -to- exceed fee of $9,600 plus reimbursables. The staff recommends accepting the proposal. Ste COMMISSION APPROVED RESOLUTION NO. 1188 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3515 BOLAND DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (SOCIETY EQUIPMENT LEASING COMPANY FOR THE BENEFIT OF AMERICAN TOOL AND DIE) ITEM 6.D. WAS TABLED South Bend Redevelopment Commission Regular Meeting - August 20, 1993 6. NEW BUSINESS (Cont.) e. continued... Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved the agreement with Walker Parking Consultants /Engineers for professional services in the South Bend Central Development Area. f. Commission approval requested for Agreement for professional services in the South Bend Central Development Area. (James E. Childs and Associates) Mr. Hunt explained that when the Commission sold the State Theater to Watseka Theater Corporation it retained the facade. Mr. Eddington noted that James E. Childs has proposed to develop cost estimates for the repair and renovation of the State Theater facade. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved the Agreement with James E. Childs and Associates for professional services in the South Bend Central Development Area. g. Staff report on disposition of land in the Sample -Ewing Development Area. Mr. Hunt asked that item 6.g. be tabled. -12- COMMISSION APPROVED THE AGREEMENT WITH WALKER PARKING CONSULTANTS /ENGINEERS FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA COMMISSION APPROVED THE AGREEMENT WITH JAMES E. CHILDS AND ASSOCIATES FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA ITEM 6.G. WAS TABLED South Bend Redevelopment Commission Regular Meeting - August 20, 1993 6. NEW BUSINESS (Cont.) h. Commission auuroval reauested for Resolution No. 1190 determining to appropriate money from the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) Special Fund. Mr. Hunt explained that Resolution No. 1190 determines to make an appropriation from the South Bend Central Allocation Area Special Fund, subject to a public hearing on September 17 and approval of the appropriation following the public hearing. The majority of the money will be used for site improvements for the Opelika Building and in connection with the Transpo relocation. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1190 determining to appropriate money from the South Bend Central Allocation Area (South Bend Allocation Area No. IA) Special Fund. i. Commission =roval requested for Commercial Lease with Center City Associates for Parcel C9 -1 in the South Bend Central Development Area. Mr. Hunt explained that Parcel C9 -1 is the parking lot north of the Inwoods Building. This is a renewal of the lease with Center City Associates. -13- COMMISSION APPROVED RESOLUTION NO. 1190 DETERMINING TO APPROPRIATE MONEY FROM THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 1A) SPECIAL FUND South Bend Redevelopment Commission Regular Meeting - August 20, 1993 6. NEW BUSINESS (Cont.) i. continued... Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Commercial Lease with Center City Associates for Parcel C9 -1 in the South Bend Central Development Area. Ms. Manier noted that item 6.k. should logically be considered before item 6.j. k. Commission approval requested for Addendum to Lease between the South Bend Redevelopment Commission and Gainey Realty and Investment Corp. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved the Addendum to Lease between the South Bend Redevelopment Commission and Gainey Realty and Investment Corp. j. Commission approval requested for Resolution No. 1191 approving the execution of an Addendum to the Lease for the Airport Economic Development Area Public Improvement Project. Ms. Manier explained that the Commission acquired ownership of a piece of property from the Industrial Foundation and put it up for public disposition. We received a bid from, and ultimately entered into a lease - purchase agreement with, Gainey Realty and Investments. They intended to make -14- COMMISSION APPROVED THE COMMERCIAL LEASE WITH CENTER CITY ASSOCIATES FOR PARCEL C9 -1 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA COMMISSION APPROVED ADDENDUM TO LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND GAINEY REALTY AND INVESTMENT CORP. Ak South Bend Redevelopment Commission Regular Meeting - August 20, 1993 6. NEW BUSINESS (Cont.) j. continued... some improvements on the property which is adjacent to their existing building. The building they are planning to build encroaches onto the lease - purchase parcel which makes financing of the building complicated. They would like to own the small piece necessary to construct the building. Item 6.k. amends the lease between Gainey Realty and Investments and the Commission to remove the small parcel from the terms of the lease- purchase agreement. The Redevelopment Authority approved the purchase of the small parcel by Gainey. Item 6J. . amends the lease between the Authority and the Commission to remove that same piece from the lease. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1191 approving the execution of an Addendum to the Lease for the Airport Economic Development Area Public Improvement Project 1. Commission approval requested for Certificate of Waiver (Rental Rehab Program) for Kenneth H. and Janice R. Miller for property located at 717 N. Blaine. Mr. Hunt explained that under the Rental Rehab Program 10% of the Rental Rehab Loan may be forgiven each year if the -15- COMMISSION APPROVED RESOLUTION NO. 1191 APPROVING THE EXECUTION OF AN ADDENDUM TO THE LEASE FOR THE AIRPORT ECONOMIC DEVELOPMENT AREA PUBLIC IMPROVEMENT PROJECT South Bend Redevelopment Commission Regular Meeting - August 20, 1993 6. NEW BUSINESS (Cont.) 1. continued... conditions of the loan are met. This Certificate of Waiver waives $1,600 for each of two years ending November 27, 1991 and November 27, 1992 for Kenneth H. and Janice R. Miller. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Certificate of Waiver for Kenneth H. and Janice R. Miller for property located at 717 N. Blaine. m. Commission approval requested for Certificate of Waiver (Rental Rehab Program) for Nicholas L. and Mary Ann Kenkel for property located at 421 N. Blaine. Mr. Hunt noted that this Certificate of Waiver waives $700 for the year ending January 31, 1993 for Nicholas L. and Mary Ann Kenkel. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver for Nicholas L. and Mary Ann Kenkel for property located at 421 N. Blaine. n. Commission approval requested for Loan in connection with the West Washin tg_on Loan Program through the Bureau of Housing for property at 1208 W. Napier. -16- COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR KENNETH H. AND JANICE R. MILLER FOR PROPERTY LOCATED AT 717 N. BLAINE COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR NICHOLAS L. AND MAY ANN KENKEL FOR PROPERTY LOCATED AT 421 N. BLAINE South Bend Redevelopment Commission Regular Meeting - August 20, 1993 6. NEW BUSINESS (Cont.) n. continued... Ms. Richmond explained that this loan is to Amy and Hugh York for $8,400.00 The amount is the actual contractors bid plus recording fees and a 6% contingency. Ms. Richmond noted that Amy York is 75 years old. Her husband is 84 years old and in a wheel chair. Amy York has three foster children whom she still cares for. She receives income for their care. The house is in immaculate condition. The improvements are necessary improvements, including remediation of some code violations. The loan interest rate is 6.87 %, which is market rate for the term. The improvements do not increase the value of the home. Ms. Richmond noted that the improvements have been approved by the Design Review Committee. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Loan in connection with the West Washington Rehab Loan Program through the Bureau of Housing for property located at 1208 W. Napier. o. Commission annroval requested for Loan in connection with the West Washington Loan Program through the Bureau of Housing for property at 1026 W. Jefferson Blvd. -17- COMMISSION APPROVED THE LOAN IN CONNECTION WITH THE WEST WASHINGTON REHAB LOAN PROGRAM THROUGH THE BUREAU OF HOUSING FOR PROPERTY LOCATED AT 1208 W. NAPIER South Bend Redevelopment Commission Regular Meeting - August 20, 1993 6. NEW BUSINESS (Cont.) o. continued... Ms. Richmond explained that Minnie Clark is 73 years old and lives alone. She does not have the means to make very large payments to a loan until she pays off an existing mortgage. Therefore, the loan has been structured with payments of $21.25 per month. The interest rate is 0% for a term of 30 years. The major improvement is a roof for the house and garage. The house is in very good condition, except for the roof, but it does not have a very high market value. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Loan in connection with the West Washington Loan Program through the Bureau of Housing for property located at 1026 W. Jefferson Blvd. 7. PROGRESS REPORTS Mr. Wolf introduced Mary Barbosa Marshall, the new marketing coordinator for Center City Associates, replacing Debbie Leonard. Mr. Wolf noted that "Meet Me on the Island" takes place today. It has been a huge success the last few years. Mr. Cierzniak asked for time to respond to the report from Economics Research Associates on the feasibility of the College Football Hall of in COMMISSION APPROVED THE LOAN IN CONNECTION WITH THE WEST WASHINGTON LOAN PROGRAM THROUGH THE BUREAU OF HOUSING FOR PROPERTY LOCATED AT 1026 W. JEFFERSON BLVD. PROGRESS REPORTS South Bend Redevelopment Commission Regular Meeting - August 20, 1993 7. PROGRESS REPORTS (Cont.) Fame. He compared revenue from per person spending at Coveleski Stadium ($6.80) to the projected per person spending for the Hall of Fame ($11.49). He feels that the Hall of Fame projection is overly optimistic. He commented on the disproportionate cost of exhibits in the Hall of Fame ($7 million) in relation to the cost of constructing Blackthorn Golf Course ($5.6 million). Mr. Cierzniak commented on the way the Commission pays for a study and then receives the report with no opportunity for intelligent questions from the public since the public is given the report at the time of the presentation. Ms. Auburn noted that the staff has ongoing discussion with the consultant after receiving the report. Mr. Cierzniak responded that the public should have some opportunity for discussion with the consultant also. Mr. Sharp asked if Mr. Cierzniak's comments were referred to Economic Research Associates. He felt they should respond to these comments and questions. Mr. Hunt responded that he would look into that. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment NEXT COMMISSION MEETING Commission is scheduled for September 3, 1993 at 10:00 a.m. -19- South Bend Redevelopment Commission Regular Meeting - August 20, 1993 9. ADJOURNMENT There being no further business to come before ADJOURNMENT the Commission, Mr. Piasecki made a motion that the meeting be adjourned. Mr. Sharp seconded the motion and the meeting was adjourned at 11:30 a.m. Paula N. Auburn, President Ann . Kolata, Director -20-