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HomeMy WebLinkAboutRM 09-17-93Ed SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING September 17, 1993 10:00 a.m. Presiding: Paula N. Auburn President I. N 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: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Tom Eddington, Economic Dev. Specialist Mr. Gabriel Okafor, Economic Dev. Specialist Mr. James Riggs, Economic Dev. Specialist Business Assistance Staff: Mr. Michael Beitzinger, Economic Dev. Specialist Bureau of Housing Staff: Ms. Mary Richmond Media: Mr. Thom Howell, U -93 Mr. Don Porter, South Bend Tribune Others: Mr. Carter Wolf, Center City Associates Mr. Steve Ellison, Coldwell Banker Mr. Peter Deputy, Coldwell Banker Mr. Bill Frash, Coldwell Banker Ms. Patt Crowley, Holladay Corp. Ms. Sheral Litell, Holladay Corp. Mr. John Libertowski, Holladay Corp. APPROVAL OF MINUTES a. AWroval of Minutes of the Regular Meeting of Friday, September 3, 1993. -1- 2. APPROVAL OF MINUTES (Cont.) a. continued... Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, September 3, 1993. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, SEPTEMBER 3, 1993 Redevelopment Commission Claims submitted September 17, 1993, for Approval. ADMIN 1993 Corporate Staffing South Bend Tribune St. Joseph County Recorder Tri County News Equipment Services Gene's Camera Store Midwest Visual Equipment York Title & Escrow Indiana Michigan Power Co. Business Communications Center ADT Security Systems Watterud, Inc. Petty Cash ICMA Distribution Center TOTAL York Title & Escrow, Inc. Pierce & Associates The Troyer Group TOTAL 901 $ 360.00 13.85 55.00 13.38 23.69 6.95 20.00 135.00 37.34 6.00 1077.87 121.20 83.83 25.45 $ 1,979.56 $ 159.00 228.38 1,573.00 $ 1,960.38 South Bend Redevelopment Commission Regular Meeting - September 17, 1993 3. APPROVAL OF CLAIMS (Cont.) BOND ANTICIPATION NOTE (ACCT 437) Sculpture Basic Inc. Donna Lawrence Productions Gerard Hilferty & Associates TOTAL S.B.C.D.A. T.I.F. GENERAL ACCOUNT Acme Service Corporation Indiana Michigan Power Company Real Estate Management Corporation Peirce & Associates Quantech Research Associates TOTAL SAMPLE -EWING DEVELOPMENT AREA Peirce & Associates York Title & Escrow McCloskey Pitts & Associates Wagner Construction TOTAL GRAND TOTAL Upon a motion by Mr. Donoho, seconded by Mr Sharp and unanimously carried, the Commission approved the Claims submitted September 17, 1993 for approval. 4. COMMUNICATIONS a. Communication from Mr. Charles Green. Mrs. Kolata noted that Mr. Green was recently appointed by the Commission to the West Washington- Chapin Design Review Committee. Mr. Green is not able to -3- $ 7,500.00 13,497.00 56,039.87 $ 77,036.87 $ 225.00 549.74 461.97 147.18 2,500.00 $ 3,883.89 $ 11,100.00 2,295.00 2,500.00 26.475.00 $ 42,370.00 $ 134,730.70 COMMISSION APPROVED THE CLAIMS SUBMITTED SEPTEMBER 17, 1993 FOR APPROVAL South Bend Redevelopment Commission Regular Meeting - September 17, 1993 4. COMMUNICATIONS. (Cont.) a. continued... continue to serve on the committee and has submitted his resignation. Mrs. Kolata read the letter from Mr. Green. August 4, 1993 City of South Bend Department of Economic Development Tom Eddington 1200 County-City Building South Bend, IN 46601 Dear Tom: This letter is to inform you that I can not continue to be on the Design Review Board. I must resign due to illness in my family. COMMUNICATION FROM MR. CHARLES GREEN If you have any questions, please feel free to call me. Thanking you in advance for your cooperation. Sincerely, Charles Green Ms. Auburn asked Ms. Kolata to send a letter to Mr. Green thanking him for his service on the Committee. 5. OLD BUSINESS a. Report on proposals received for Real Estate Services for Commission propea. Mrs. Kolata explained that the staff sent out a request for proposals to two local firms, Coldwell Banker and The Holladay -4- South Bend Redevelopment Commission Regular Meeting - September 17, 1993 5. OLD BUSINESS (Cont.) a. continued... Corporation for real estate services in our redevelopment and economic development areas. The staff has reviewed the proposals and prepared a written summary. Also, both firms have been asked to make an oral presentation at this time. Steve Ellison stated that Coldwell Banker PRESENTATION BY COLDwELL BANKER intends to assign six people to the marketing of redevelopment owned land, two to each project area. Peter Deputy talked about the marketing strategies Coldwell Banker would use. They would use a strict brokerage approach, as opposed to a mixed brokerage /development approach; they would use a team approach with the six agents assigned to this effort; and they would emphasize the synergy which can be generated between redevelopment property and the other property they represent. One of the distinct advantages they feel they offer is that they are strictly a brokerage firm and would not be in competition with land that they own or represent. Mr. Frash talked about the networking opportunities available through Coldwell Banker. He is a member of the Society of Industrial and Office Realtors. There are only four such members in this community. He gets a lot of referrals through this organization. John O'Brien belongs to Certified Commercial Investment Marketers through which he gets a lot of referrals. Coldwell Banker has offices in forty -four Sim South Bend Redevelopment Commission Regular Meeting - September 17, 1993 5. OLD BUSINESS (Cont.) a. continued... cities across the country with which they network, including two offices in Indianapolis. Coldwell Banker is a strong national and international name. They also network with CB Commercial in Chicago, which has been hired to help market the Blackthorn Corporate Park. Steve Ellison stressed the importance of the network that Coldwell Banker has in place to the successful marketing of redevelopment owned land. They feel that they are well positioned for this marketing effort. He then passed out samples of the marketing materials they have used for various promotions as well as a list of the properties they are currently marketing and those they have successfully closed. They market a lot of light industrial land and most of our land is zoned light industrial. Mr. Sharp asked how Coldwell Banker is networked in southern Michigan. Mr. Ellison responded that Coldwell Banker advertises regularly in Commercial Inc. which is distributed in southwestern Michigan, northwest Indiana and Chicago. It has been an effective vehicle for marketing outside this community. Also, Coldwell Banker Residential is a strong name in the Detroit area and they meet several times a year with them and have a similar relationship in Grand Rapids. Patt Crowley explained the benefits of Holladay Corporation and the strategies they would use to market the land. She noted that H PRESENTATION BY HOLLADAY CORPORATION South Bend Redevelopment Commission Regular Meeting - September 17, 1993 5. OLD BUSINESS (Cont.) a. continued... Holladay Corporation did begin in this community as a developer, later moving into marketing the properties Holladay Corporation owns. That shift has grown to represent the properties of other owners. Ms. Crowley noted that 80 % of the transactions made in St. Joseph County are local transactions: local relocations and expansions. Holladay Corporation, with over 300 tenants, has an instant source of users and buyers. Ms. Crowley distributed a list of properties they are currently marketing as well as a history of their marketing light industrial property, including the South Bend Toy building, and the Wheelabrator building. They found the purchaser for the Clark Equipment Plant in Battle Creek. Ms. Crowley is currently working with our staff on filling the Incubator with tenants. In the last couple of years, Holladay Corporation has sold out a 46 -acre industrial park in Elkhart. These sites were all three acres or less. Additionally, they sold 15 acres (7 parcels) near Old Cleveland Road. They have negotiated land sales in the National Center for Senior Living. Ms. Crowley noted that one of the benefits they offer a customer looking at land is the ability to do site analysis and develop site plans and cost estimates for development. Their brokerage staff dedicates itself to selling land and renting office space. Build - to -suit development projects are referred to different staff who specialize in that. -7- South Bend Redevelopment Commission Regular Meeting - September 17, 1993 Ms. Crowley noted that one feature that sets Holladay Corporation apart from other brokerage firms is that they own other things besides offices and industrial buildings. The hotels and residential places they own allow them to provide services to clients who need temporary accommodations. Ms. Crowley noted that Holladay Corporation also has a strong network with Chicago and Indianapolis. She will become a member of SIOR and CCIM in November. Holladay Corporation is working on a 1300 - acre industrial park in Indianapolis and through those contacts have brought national firms to South Bend. Mr. Piasecki expressed concern that Holladay Corporation is already too busy to give our property the attention it needs. Ms. Litell responded that she has presentation tools already developed, such as the information on land in the Toll Road Industrial Park. Ms. Kolata asked for clarification of the marketing budget from Coldwell Banker and Holladay Corporation: whose costs are those. Ms. Crowley and Mr. Ellison responded that those are Redevelopment's costs. Mr. Sharp asked both firms how strong of a competitor they feel the Commission's land is. How strong a market is South Bend? Ms. Crowley responded that location is everything. South Bend is a great location with its proximity to the Toll Road. Studebaker Corridor property is very popular right now. Steve Ellison responded that this community has positioned itself well for light industrial users. There is a lot of demand In South Bend Redevelopment Commission Regular Meeting - September 17, 1993 5. OLD BUSINESS (Cont.) a. continued... now for light industrial land in the area. The Commission's land offers a lot of choices for light industrial users. The Central Business District land will be more difficult to market, but still do -able. Ms. Auburn thanked Coldwell Banker and Holladay Corporation for their fine presentations and noted that the Commission will make a decision at its October 1 meeting. 6. NEW BUSINESS Mrs. Kolata asked permission to add items 6.j APIN and 6.k. to the agenda. There were no objections and the items were so added. a. Public Hearing on Resolution No. 1192, a Supplemental Appropriation Resolution of the City of South Bend Redevelopment Commission. Mrs. Kolata offered the following items to be entered into the record: 1) an affidavit from the South Bend Tribune that the Notice of Hearing was published on August 27, 1993; 2) an affidavit from the Tri- County News that the Notice of Hearing was published on August 27, 1993. Mrs. Kolata explained that the purpose of the Public Hearing is to appropriate $430,000 from the Tax Increment Financing Allocation Fund in the South Bend Central Development Area for eligible redevelopment projects in the area. We intend to use the funds for In South Bend Redevelopment Commission Regular Meeting - September 17, 1993 6. NEW BUSINESS (Cont.) a. continued... public improvements associated with the redevelopment of the Opelika Building and for the purchase of the Transpo lot and the relocation of Transpo to a new site. Ms. Auburn opened the Public Hearing for anyone who wished to be heard. There was no one who wished to speak. Ms. Auburn closed the Public Hearing. b. Commission approval requested for Resolution No. 1192. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1192, a Supplemental Appropriation Resolution of the City of South Bend Redevelopment Commission. c. Commission approval requested for Release of Urban Homesteading Agreement with James A. and Bonnie S. Connors. Ms. Richmond explained that James and Bonnie Connors have completed their Urban Homesteading requirements for their house in the 500 block of N. Cleveland. They have lived in the home for five years. The Bureau of Housing staff have inspected the home and it is in very good condition. PUBLIC HEARING ON RESOLUTION NO. 1192 COMMISSION APPROVED RESOLUTION NO. 1192, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION Upon a motion by Mr. Piasecki, seconded by COMMISSION APPROVED THE RELEASE OF Mr. Sharp and unanimously carried, the URBAN HOMESTEADING AGREEMENT WITH Commission approved the Release of Urban JAMES A. AND BONNIE S. CONNORS Homesteading Agreement with James A. and Bonnie S. Connors. -10- South Bend Redevelopment Commission Regular Meeting - September 17, 1993 6. NEW BUSINESS (Cont.) d. Commission approval requested for Resolution No. 1194 approving an application for real property tax deduction for property located at 322 E. Colfax in the South Bend Central Development Area. (Stephenson Mill, Inc.) Mr. Beitzinger noted that the South Bend Redevelopment Commission filed for tax abatement on behalf of RKE, Inc., for the Stephenson Mill apartment building. Mr. Beitzinger gave the staff report on the project. RKE, Inc. is in the business of developing, constructing and managing multi- family housing. Their project involves the restoration, renovation and conversion of the historic Stephenson Mill Building (aka: Opelika Building) into multi - family residential housing. After completion, the building will be listed on the National Register of Historic Places as a certified historic structure. A total of 39 one or two bedroom apartments will be created on the site. Typical project amenities will include modern kitchens with a full range of appliances, washer /dyer hookups, a rooftop deck, river view, mini - blinds, security locked intercom entry system, and extensive site landscaping. The total projected cost of the project is estimated to be in excess of $2,400,000. The estimated market value of the property after completion of the project is $1,800,000 (using the net operating income method). The project will create two (2) new permanent full-time jobs, representing an -11- JIN South Bend Redevelopment Commission Regular Meeting - September 17, 1993 6. NEW BUSINESS (Cont.) d. continued... annual payroll of $30,000. The project will also create a series of construction and construction - related jobs during the renovation process. The petitioner has not been granted any previous tax abatement consideration. 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 the South Bend Central Development Area. The property is also located in a Tax Incremental Financing Allocation Area. The project qualifies for 10 years of real property tax abatement under the Tax Abatement Ordinance. Without abatement and with a project value of $1,800,000, the project will generate approximately $863,730 in new taxes over the ten year period. With abatement, the project will generate approximately $436,184 in new taxes. Therefore the cost of the abatement is approximately $427,546 over ten years. Ms. Auburn asked what taxes are currently being paid on the site. Mr. Eddington stated that since the Commission owns the property, there are no taxes being paid on it. Prior to the Commission owning it, taxes ranged from $4,000 to $18,000. Mrs. Kolata noted that the construction should be well under way by the end of October. -12- South Bend Redevelopment Commission Regular Meeting - September 17, 1993 6. NEW BUSINESS (Cont.) d. continued... Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1194 approving an application for ten years of real property tax deduction for property located at 322 E. Colfax in the South Bend Central Development Area. (RKE, Inc.) e. Commission approval requested for proposal from Economic Research Associates for professional services related to the Studebaker Museum. Mrs. Kolata explained that the Studebaker National Museum is looking for a new location. There is some interest in keeping the museum in the downtown and some interest in moving it to the edge of town near the Indiana Toll Road. Economic Research Associates has proposed to study the impact of the two locations and make some recommendations. The data they have collected in order to evaluate the impact of the College Football Hall of Fame on the community will make this analysis simpler. They propose to complete the study for a cost of $5,000 with a presentation date to be set after three weeks. Ms. Auburn noted that the genesis for this study has come from some joint meetings she and Mr. Faccenda have had with Jon Hunt and representatives of the museum board. They decided to take advantage of the information collected for the College Football Hall of Fame study and ask ERA to assess -13- COMMISSION APPROVED RESOLUTION NO. 1194 APPROVING AN APPLICATION FOR TEN YEARS OF REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 322 E. COLFAX IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA a; KE, INC.) South Bend Redevelopment Commission Regular Meeting - September 17, 1993 6. NEW BUSINESS (Cont.) e. continued... the impact to the community and to the museum of each of the considered locations. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved the proposal from Economics Research Associates for professional services related to the Studebaker National Museum. f. Commission approval requested for proposal from Panzica Architects, Inc. for professional services related to the Studebaker National Museum. Mrs. Kolata noted that Panzica Architects has proposed to prepare some schematic design and preliminary plans for the relocation of the Studebaker Museum to the south portion of Century Center's parking lot and four other possible locations; 1) the block where they are currently located; 2) the block where Inwoods was located; and two yet unidentified sites in the East Bank. Panzica will establish project size, site plans, space plans, building footprint, and preliminary project budgets for each location. Their fee for this work will be $17,800 plus reimbursable items. Mrs. Kolata noted that we would amend the proposal to delete a requirement that invoices are payable within 15 days and that reimbursables be paid at direct cost plus I% instead of 10 %. Mr. Piasecki asked why no other proposals were sought. Mrs. Kolata responded that we are not required to request multiple proposals -14- COMMISSION APPROVED THE PROPOSAL FROM ECONOMICS RESEARCH ASSOCIATES FOR PROFESSIONAL SERVICES RELATED TO THE STUDEBAKER NATIONAL MUSEUM South Bend Redevelopment Commission Regular Meeting - September 17, 1993 6. NEW BUSINESS (Cont.) f. continued... for professional services. The Commission tries to spread its work to a variety of local firms. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved the proposal, as amended, from Panzica Architects, Inc. for professional services related to Studebaker National Museum. g. Staff report on disposition of property in the Sample -Ewing Development Area. There was no report. h. Filing of Resolution No. 1193 amending the Development Plan for the Sample -Ewing Development Area and setting a Public Hearing on Resolution No. 1193 for 10:00 a.m. on October 1, 1993. Mrs. Kolata explained that Resolution No. 1193 amends the Sample -Ewing Development Plan to add 269 parcels of property to the acquisition list. Every person listed in the resolution will receive written notification of the public hearing to be held October 1 at 10:00 a.m. Mr. Piasecki asked about the timetable for these acquisitions. Mrs. Kolata responded that we intend to move rapidly. Parkview Juvenile Center expects a successful bond issue and expects to begin construction next spring or summer. We want to meet their schedule. Even if IVY Tech doesn't have -15- COMMISSION APPROVED THE PROPOSAL, AS AMENDED, FROM PANZICA ARCHITECTS, INC. FOR PROFESSIONAL SERVICES RELATED TO STUDEBAKER NATIONAL MUSEUM THERE WAS NO REPORT 0 South Bend Redevelopment Commission Regular Meeting - September 17, 1993 6. NEW BUSINESS (Cont.) h. continued... funding for this year, we want to acquire and clear land for them, expecting that they will receive funding eventually. People in that area are expecting it and it is hard for them to be in a state of indecision for an extended period of time. Resolution No. 1193 was filed and a Public Hearing set for 10:00 a.m. on October 1, 1993. i. Commission approval requested for Commercial Lease between Center City Associates and Holladay Corporation. ( Inwoods Lot) Mrs. Kolata explained that the Commission has a lease with Center City Associates for the parking lot north of the former Inwoods store. Our lease with Center City Associates requires that all subleases be approved by the Commission. Holladay Corporation will be leasing the parking lot of approximately 109 parking spaces at a cost of $10,938.96 per year for the year January 1, 1993 to December 31, 1993. The lease is amended by the Commission to state that "this lease or any renewal thereof may be terminated by 30 days notice thereof. " Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Commercial Lease between Center City Associates and Holladay Corporation. -16- RESOLUTION NO. 1193 WAS FILED AND A PUBLIC HEARING SET FOR 10:00 AM. ON OCTOBER 1, 1993. COMMISSION APPROVED THE COMMERCIAL LEASE BETWEEN CENTER CITY ASSOCIATES AND HOLLADAY CORPORATION South Bend Redevelopment Commission Regular Meeting - September 17, 1993 6. NEW BUSINESS (Cont.) Staff report on acquisition of property in the West Washington-Chapin Development Area. Mrs. Kolata noted that we have received a counter offer from Irvin and Dora Goldberg in the amount of $3,000 for a vacant lot Parcel W75 -15) in the West Washington - Chapin Development Area. The staff recommends accepting the offer. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission accepted the counter offer from Irvin and Dora Goldberg for $3,000 for Parcel W75 -15 in the West Washington - Chapin Development Area. k. Commission approval requested for Termination of Lease with Center City Associates for property located in the South Bend Central Development Area. Mrs. Kolata explained that Transpo plans to relocate its transfer facility to what is now a parking lot at Main and Western. The lot is one of the properties leased to Center City Associates. We need to give notice that this lease is being terminated. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Termination of Lease with Center City Associates for property located at Main and Western in the South Bend Central Development Area. -17- COMMISSION ACCEPTED THE COUNTER OFFER FROM IRVIN AND DORA GOLDBERG IN THE AMOUNT OF $3,000 FOR PARCEL W75 -15 IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA COMMISSION APPROVED THE TERMINATION OF LEASE WITH CENTER CITY ASSOCIATES FOR PROPERTY LOCATED AT MAIN AND WESTERN IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - September 17, 1993 7. PROGRESS REPORTS Mrs. Kolata reported that the tours of Blackthorn Golf Course were held on September on September 10. It should be one of the most beautiful courses in the country: a real work of art. It will also be a very challenging course. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for October 1, 1993 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Commission, Mr. Donoho made a motion that the meeting be adjourned. Mr. Sharp seconded the motion and the meeting was adjourned at 11:42 a.m. mac/ / V Paula N. Auburn, President in PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT Ann E. Kolata, Director