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HomeMy WebLinkAboutRM 12-17-93SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING October 1, 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. Michael Donoho Members Absent: Mr. Theo F. Sharp, Secretary Mr. Philip Faccenda Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Jon Hunt, Executive Director Mr. Tom Eddington, Economic Dev. Specialist Mr. Gabriel Okafor, Economic Dev. Specialist Mr. James Riggs, Economic Dev. Specialist Ms. Hedy Robinson, Economic Dev. Specialist Ms. Pam Matchett, Intern Media: Mr. Thom Howell, U -93 Mr. Don Porter, South Bend Tribune Ms. Diane Daniels, WSJV -TV Others: Mr. Steve Ellison, Coldwell Banker Anchor Ms. Sheral Litell, Holladay Corporation Ms. Karen High Ms. Mylinda Jones Ms. Katie Jones Ms. Alberta Brown Mr. Willie T. Brown Mr. S. E. Price Mr. Emanuel Jennings Ms. Beatrice Jenkins Ms. Dorothy Taylor Ms. Paulette Murphy -1- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 1. ROLL CALL (Cont.) Others continued... Ms. Joceln Polack Ms. Justine Polack Mr. Frank Polack Mr. O. C. Peterson Ms. Barbara Ruffin Mr. Reginald Ruffin Ms. Inez Bracey Ms. Leslie Bracey Mr. Lee W. Thomas Ms. Shirley M. Thomas Ms. Jo Blacketor Ms. Tina Deka Ms. Jacinta Wielgos Ms. Myrtle Doaks Ms. Juanita Donaldson Ms. Margaret Oliver Ms. Vera Humphrey Ms. Betty Trotter Ms. Ethel Nyikos Mr. Henry Balanow Mr. Ed Balanow Ms. Elech McKilry Ms. Clarice Blue Mr. J. W. Rogers Ms. Leslie King Ms. Claudia Burks Mr. John Wigfall Mr. Willis West Mr. Joe Fennessee Mr. William Jenkins Ms. Betty Tidwell M. Middleton Mr. Willie Hall Ms. Donella Marsh Mr. Y. C. Magee Mr. Eugene Kyle Ms. Mabel Hall Mr. F. Bueno Mr. Pete Mattheos -2- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 1. ROLL CALL (Cont.) Others continued... 2. APPROVAL OF MINUTES Ms. Amanda Griffin Ms. Marie Ruiz Ms. Katie Banks a. Approval of Minutes of the Regular Meeting of Friday, September 17, 1993. Upon a motion by Mr. Piasecki, seconded COMMISSION APPROVED THE MINUTES OF by Mr. Donoho and unanimously carried, THE REGULAR MEETING OF FRIDAY, the Commission approved the Minutes of the SEPTEMBER 17, 1993 Regular Meeting of Friday, September 17, 1993. 3. APPROVAL OF CLAIMS Claims submitted October 1, 1993 for approval: ADMIN 1993 James Riggs $ 68.54 Corporate Staffing Resources 1,005.75 Federal Express 36.00 Tri County News 194.72 St. Joseph County Auditor 45.00 NBD Skokie Bank 8.92 TOTAL $ 1,358.93 S.B.C.D.A. TIF - GENERAL ACCOUNT (420) Indiana Bell $ 51.92 Quantech Research Associates 2,500.00 TOTAL $ 2,551.92 BOND ANTICIPATION NOTE (437) Donna Lawrence Productions $ 13,497.00 TOTAL $ 13,497.00 992 3. APPROVAL OF CLAIMS (Cont.) SAMPLE -EWING DEVELOPMENT AREA (414 York Title & Escrow, Inc. $ 540.00 J. A. Wagner 28,125.00 UDAG Reimbursement 22,425.00 McCloskey -Pitts Associates, Inc. 12,000.00 Huma Appraisals 3,200.00 TOTAL $ 66,290.00 GRAND TOTAL $ 83,697.85 Upon a motion by Mr. Donoho, seconded by Mr. COMMISSION APPROVED THE CLAIMS Piasecki and unanimously carried, the SUBMITTED OCTOBER 1, 1993 Commission approved the Claims submitted October 1, 1993. 4. COMMUNICATIONS Mrs. Kolata noted that one Communication was COMMUNICATIONS received which is a written remonstrance to Resolution No. 1193. A copy is attached to these minutes. 5. OLD BUSINESS There was no Old Business. THERE WAS NO OLD BUSINESS 6. NEW BUSINESS a. Public Hearing on Resolution No. 1193 amending the Development Plan for the Sample -Ewing Development Area. Mrs. Kolata asked that the following items be entered in the official record of the meeting: 1) An original of the "Notice of Hearing on Amendment to the Sample Ewing Development Plan; " 2) An affidavit of Carol Smith, Advertising Manager of the South Bend Tribune, that the Notice of Hearing was published in that daily c -4- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... newspaper on September 17, 1993; 3) An affidavit of Lisa J. Andrysiak, Classified Manager of the Tri- County News, that the Notice of Hearing was published in that weekly newspaper on September 17, 1993; 4) A memo from Gabriel Okafor stating that on September 20, 1993 he sent a copy of the Notice of Hearing to the affected property owners and registered neighborhood associations and neighborhood leaders; 5) A copy of Resolution No. 1193 which is the subject of the public hearing; 6) As of 10:00 a.m. on October 1, 1993, 1 written remonstrances was received. Ms. Auburn asked if there was any objection to these items being entered in the official record. There was no objection and the items were so entered. Mrs. Kolata explained that Resolution No. 1193 amends the Sample -Ewing Development Area Development Plan by adding properties to the acquisition list. The properties to be added are in an area roughly bounded by Michigan Street, Fellows Street, the alley between Broadway and Pennsylvania streets, and Ohio Street, jutting up to Sample Street at a few places. The Commission intends to acquire the properties in this area. There will be a later resolution setting the prices for the properties and authorizing the Commission to send purchase offers. Resolution No. 1193 does not set the purchase price nor authorize the sending of purchase offers. -5- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... We hope to be ready to set prices and send some of the purchase offers in about thirty days. The appraisers are writing the appraisals now. The staff must then review the appraisals before setting prices. Ms. Auburn opened the Public Hearing on Resolution No. 1193 for anyone who wished to speak. DOROTHY TAYLOR: 819 S. Kosciuszko Street. The property that I now own at 202 E. Ohio Street was owned by my brother, but he died last year. I was wondering whether you were aware of what had happened four years ago. My brother and some of his other neighbors received a letter from Hallmark Realty. In that letter they stated that they were commissioned to buy up all this property in this general area, so that a mall could be built by a developer from Indianapolis. So the man came and approached each of those people and my brother was offered $27,600 for the property. Of course, he was all for it. He thought, fine, that's a nice amount. So he purchased another home. He moved. In the meantime he's waiting to get paid for his house on Ohio Street. He signed an agreement with this man from Hallmark Realty. But he never got the money. He died last year waiting to be paid. In the meantime, the house was being broken into, so he finally had to have it tom down. So, I was wondering whether you had heard about this. EM South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... MRS. KOLATA: I don't know the specifics of that particular case. I was aware of the developer that said he was working to go out and option land. I never heard that there were actual agreements or that they weren't followed through on. That's a real unfortunate situation. We can certainly talk about it. As the property is now, it's a vacant lot? MS. TAYLOR: It's a vacant lot. MRS. KOLATA: What that means is that it will be appraised as a vacant lot and if we were to send a purchase offer, it would be a purchase offer for a vacant lot which would be significantly less in value than what was offered for it by the private developer. MR. HUNT: We were contacted many years ago on this. It was going to be a pure private development. They had talked to us about any kind of rezoning potential and market information and that kind of thing. As I understand it, it didn't move forward because the developer couldn't get financing. The reason they couldn't get financing was that they couldn't get tenants to sign up for that retail development in that area, in terms of the market conditions and the surrounding area. Without tenants signing on the dotted line, financing couldn't come through and everything fell apart. The only thing they had asked us to consider at the time was: as we planned for the general area, to help plan and include that in the area, a retail mall. They had heard at that time that we were -7- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... discussing redevelopment potential and wanted to make sure the pieces all fit together. They had not asked us for anything other than that. I'm sure they would have come back in under the city ordinance and asked for tax abatement, as a developer would. That's as much as we know about it. We were not part of that process. It was supposed to be a pure, private transaction. JAMES MASTERS: I'm here on behalf of Frank and Tina Polack who are sitting right in front of you, there. Just want to confirm that you got our written remonstrance. MRS. KOLATA: It's right here. MR. MASTERS: I think the remonstrance speaks for itself, but did want to confirm that they object to their property being included in the district. Their property at 1010 S. Michigan Street is their home. It's a business office. It's not blighted. It's very well kept up. Frankly, it's hard to determine how this Commission can decide that that property is blighted or that it is needed to acquire that property for any public purpose. Frank, did you want to add anything? FRANK POLACK: No, I choose to withhold any chronological developments, any unpublished departmental procedures until a later date. South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... MS. AUBURN: Thank you, Mr. Masters. Yes, we do have the letter and we need to acknowledge that in the written communications part. It is entered into the record. DONELLA MARSH: I'd like to say something. My residence is 130 E. Ohio Street. I'm quite concerned that everyone whose property is involved in this redevelopment plan is treated fairly. And at the market price for their home. And my concern is how you go about determining, since this man mentioned the word blighted, that a property is blighted and, if so, how did you make that known? Also, I'm very concerned that some appraisers came to our home and did some appraising and did not give a follow -up copy of the actual, final appraisals. I don't think that that was appropriate. I'd like to have access to those documents. I'd like some answers to how you intend to go about making sure that people are treated fairly regarding their property, whether there is a home on the lot or they simply own land, simple lots, or whatever. I want some detailed information and I'd like to have that in writing. MRS. KOLATA: We'd be glad to supply something to you in writing, but let me just respond to that right this moment. First off, the appraisers are hired by the Redevelopment Commission. There are two appraisers assigned to each piece of property. I believe that we have six or seven total appraisers working in the In South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... neighborhood: two are assigned to each piece of property, but they are not always the same two from property to property. The appraisers are working for the Commission, but they are independent appraisers. They come up with the value that they see as the value of the property and they report it to the Commission. Because the Commission is the one hiring the appraisals, and because of some wording within the state law, the appraisals are the property of the Commission and the Commission has never made copies of those appraisals available to the homeowners. MS. MARSH: Since you mentioned the state law, by what jurisdiction of state law.... MS. KOLATA: It's under the redevelopment statute and I can give you the specific citation: it's 36- 7- 14 -19. It has to do with acquisition of property. What happens, then, is that the staff gets the two appraisals, they are read, they are reviewed, and a price is put forward as the staff recommendation on price. Almost always it is the average of the two appraisals. I won't say that it is, 100 % of the time, the average of the two appraisals, but, as a rule, well over 90 % of the time, what we offer is the average of the two appraisals. That is what is brought to the Commission. MS. MARSH: How do I gain access to that information? -10- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... MRS. KOLATA: Well, at the time a purchase offer is sent, it would have a specific price in it. If you wanted to get an appraisal of your property, that would be up to you to pay for someone else to do another appraisal to compare it to ours. Or to work with a real estate agent to say, "Does this seem like a fair number ?" But we do not make our appraisals available to anyone. Our offer is based on the appraisals, after a review by staff, it is generally the average, but the appraisals themselves are Commission documents and we stay by that. In terms of treating people fairly, we have bought property over the last few years. A lot of property. We pride ourselves on our staff and our fairness in dealing with everybody that we work with. We try to treat everyone as an individual circumstance and treat them honestly and fairly and within reason. We tell you, and we tell everyone, that when we send a purchase offer you have three choices: you can accept the purchase offer, you can reject our purchase offer, and you can make a counter offer. The counter offer will be brought to the Commission, they will be presented that information, and they can decide "I like this counter offer. I will accept it." or "I don't like this counter offer. We'll make a counter offer back. " The staff works and negotiates with every single property owner that is out there, whether they live there, whether they have a business there, or whether it's a vacant lot. We will treat everyone fairly. That does not mean your counter offers will sit South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... all be accepted. It will depend on the circumstances and how far apart we are. But we will treat you fairly. There are also, for people who are living there or having a business there, there are relocation benefits available that are separate from the purchase price of the property. Hedy Robinson on our staff and Gabriel Okafor on our staff, both of them work on both the acquisition and the relocation and, again, will treat everyone individually, fairly, and work through the circumstances of what payments are due to individuals for relocation and making sure that happens in a fair manner. We had one meeting in the Southeast Neighborhood where there were several people who had been relocated by us in the past and the question from the neighborhood group was, "Did you believe you were treated fairly ?" The answer was, "Yes." We pride ourselves in treating people reasonably and with some compassion. TINA POLACK: 1010 S. Michigan Street. Should we have questioned the three appraisers that came to our property that day if only two were supposed to be sent by you? We had three. MRS. KOLATA: It may have been two from one firm. MS. POLACK: Two from one firm and, of course, they were two different names, as far as that goes. -12- JON South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... MRS. KOLATA: There were two firms hired. If one firm chooses to send two people, that's their business. MS. POLACK: Then there was a third person. MRS. KoLATA: That's there business. They are submitting one report. And another firm will submit one report. So we will have only two appraisals, even if there were three people. We are only paying for two appraisals. REGINALD RUFFIN: I'm really concerned about the timetable. There are several factors involved. One, I have spent a lot of money on a home that I was refurbishing before you gave me this notice. The winter is coming. Last spring I started putting in a new hot water heating system which I didn't complete because you'll be tearing it down. But winter is coming near and I'm torn between whether I should put in another $800 - $1,000 to complete that and if I'll be reimbursed. Second, is the timetable for the kids that are in school. Are you planning on moving us in the heart of winter and these kids are already in school and we're going to have to get them transferred to other schools? I'd like you to address that. MRS. KOLATA: I'm not sure that I can give you an exact timetable. What is your address again, sir? MR. RUFFIN: 311 E. Keasey. -13- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... MRS. KOLATA: That's right. We met at one of the other meetings. I can't give you an exact timetable as to when you will have to move. My guess is that it will be during the school year, given that this is just the beginning of the school year and the school year doesn't end until June. My assumption would be that it would probably be somewhere within the school year. Again, that may depend. Purchase offers, when they go out, give property owners a thirty - day period in which to respond. We normally would like to hear from people, regarding the purchase offers, in less than thirty days, but we give you at least thirty days to respond to a purchase offer. Once the purchase offers are sent, we start working on relocation. It doesn't mean we've agreed on a purchase price. But Hedy will start working with folks on relocation to start seeing what they are looking for, where they are going, what their benefits will be, etc. We cannot force anyone to move until 90 days after we acquire possession of the property. The only thing we can do in less than ninety days would be in a dire emergency, such as the house burning down, where it would have to be less than that ninety days. But normally what happens is that once we acquire possession of the property, we then issue a ninety -day notice that says they should leave within ninety days. Again, we can't force anybody who is a resident to leave if they have no place to go. It's a mutual responsibility. We need -14- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... to be working with you so that you know what kinds of financial assistance you will be getting, what payments you will be getting; and you need to be looking. You can't just ignore the fact that this is happening. You need to be reasonably looking. But, within that time period, sometimes it does take longer than ninety days. Again, it will depend. Some pieces of property we may be able to give a longer period of time, depending on where they are located. There may be some circumstances, sometimes. MR. RUFFIN: Let me reiterate. Winter's coming. I've got a large extension on my house that's not insulated. I'm getting ready to put in a boiler. That's a lot of money that I have to put in to prepare for the winter months in my home. You're getting ready to tear down my house and you've already appraised it. Now where's the compensation going to come back for what I'm going to have to do to ensure that my family is warm for the winter. MRs. KoLATA: You don't have adequate heat in there now? MR. RUFFIN: I don't have adequate heat because the boiler went out. I have the new boiler. I just have to finish the pipe work. MRS. KOLATA: Normally, we tell people not to be investing money in their homes at this point. But I think where that comes in is in a discussion of the purchase price. 5162 South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... Obviously you need to be warm for the winter. MS. ROBINSON: The other thing that we may do, if the work is extensive, if you put in extensive work after the property has been appraised, we can bring that work to the attention of the appraiser and ask them to consider that. MR. RUFFIN: Then they can say, "Not really. " I mean we're not going to redo it. MRS. KOLATA: Right. MR. RUFFIN: How do I get compensated? I want something from the city to tell me that if I spend another two or three thousand dollars to assure that my family is going to be warm, when you are going to take my house. MS. ROBINSON: I think the important thing to do, even in that case, is to keep all of your receipts for any improvements and we will take that into consideration. MRS. KoLATA: Right. And, again, I would say that they should be things like heat, as opposed to cosmetic. We all understand that you can't defer something like heat. Keep your receipts. We will consider that because you are right —that is not in the appraisal right now. JO BLACKETOR: 906 E. Eckman. I just have one question. It's a follow -up to Mrs. -16- WANK South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... Marsh. To support the intent of the fair process for those homeowners, would the city development office consider releasing funds for the homeowners from the neighborhood monies so that each homeowner can solicit their own appraisal? MRs. KoLATA: We have not normally paid for an appraisal. We have not provided money for the homeowners. That is really a private purpose for those neighbors. In some cases people have gone out and gotten appraisals on their own and spent that money. In some cases they've just used their judgement and their knowledge of the neighborhood. Ms. BLACKETOR: That's when they are initiating that they want to sell their home. MRS. KOLATA: No, not necessarily. I'm saying, in response to our purchase offers, people have come in with their own appraisal in support of their counter offer. And sometimes they have not spent that money, they've just said, "Based on what I know of land sales or ... MS. BLACKETOR: So the City would not consider that. MRs. KoLATA: I don't think we would pay for appraisals for everyone else, no. And it would be at our direction. It would be another appraisal bought by us and everyone would still say it's our appraisal. -17- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... Ms. BLACKETOR: No, you'd just release the funds. They'd get the appraisals on their own. MRS. KoLATA: I'm not sure we can do that. MRS. KoLATA: There was a question that Ms. Marsh asked earlier that I didn't answer and that was over the blight. An important thing to know is that not every structure within the neighborhood must be blighted in order to be part of a blighted neighborhood. We recognize that there are homes in the neighborhood that, as individual pieces of property, are not blighted. It is the neighborhood, it is the area as a whole, that is blighted. It is the development area that has been declared blighted and confirmed blighted. Not each single piece of property within the area. MARGARET ouvER: I'm sitting in for my mother, Marie Banks. She's in the hospital. She lives at 310 E. Keasey. She had windows put into her home. She said they had not appraised that yet. But she's still paying on these windows and she's being harassed because she refused to keep paying for windows that they plan on tearing down the house. Ms. KoLATA: If she has a contract to have done the windows, she needs to pay for that. Because the work was done, the windows were repaired, and that's her obligation to pay for those windows. Again, if it's something that she's done recently that she's M. South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... not sure that would get covered by the appraisal, if she keeps the receipts and the information, we can discuss that on an individual basis. But we can't relieve her of a responsibility to a contractor who put in windows for her. JOCELYN POLACK: I'm Frank T. Polack's daughter and have taken over my father's agency along with Polack Realty. A concern about these appraisals ... I know that they are supposed to be done on an individual basis, and yet with improvements that go into the properties, even though you can go ahead and give your billings to appraisers and they can take that into consideration, it doesn't mean that they will be fully compensated, of course, for those improvements, such as the windows in the house over there. Along with the (I'm assuming that appraisals are taken on market comparables of homes in the area) and whether it's this house that has had new windows compared to the house that's had new heating, how do you go about justifying giving a little bit more to this home compared to the house next door to it that's just as nice, but possibly not having one of those new additions to it? I mean, your market analysis or your prices that you are going to be getting these homes for all these people here, have to be adjusted to being in this same proximity of pricing to go ahead and come out all comparable to what the appraisals are going to come back with. -19- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... Ms. KOLATA: We do rely on the qualifications of the appraisers and, as I mentioned, there are a number of different appraisers going through the neighborhood. They are all qualified appraisers. Some of them are only residential qualified appraisers and some of them are qualified for residential and commercial properties and that's part of how we've divided up the work load is to make sure that we have commercial appraisers on every commercial property, that we have residential appraisers on every residential property, and we have teamed them up so that we make sure we have well qualified appraisers working on each piece of property. They do look at a number of factors when they are arriving at their value. They look at the market; they look at comparable properties; if it is something that is an income- producing property, they look at the income level and they have to consider (although they don't always use) the cost approach, the reproduction value of a piece of property. But each one of those properties, they look at a number of different ways of appraising the property and then they use their professional judgement as to what is the value of that property. They certainly will not all be the same value within the neighborhood. There will be some real consistencies in value, but there will also be ... commercial frontage on Michigan Street will have a different value than a residential lot several blocks off of Michigan Street. I don't think there's any question about that. -20- API South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... MS. JOCELYN POLACK: Another question, too, though, is that you mentioned about people should start looking, possibly. Well what price range are you telling these people to go out and look at? MS. KOLATA: I'm not telling them to go look today, because we have not sent a purchase offer to anyone. The worst thing that could happen would be for somebody to move before we send a purchase offer. In that case, we would still be purchasing the property, but your eligibility for relocation benefits would be gone. So, I am not saying to anyone, to go out and move at this point. What I'm saying is that once we send the purchase offer, once we start having a purchase offer, then that will give you some clue. Hedy and Gabriel will start meeting with folks about relocation benefits and for an owner in the area who has a house, what you need to consider, in buying a replacement house, is not only the value that we're giving you for your house, but, also, your relocation benefit. For homeowner /occupants in the area, that relocation benefit can be up to $22,500. In addition to that, there are moving costs. So it really will depend, on a case -by -case basis,. Hedy and Gabriel will work that out individually with everyone. Tenants in the property will get a certain amount of relocation. It is not as generous as for owner /occupants. But you have to add those numbers together to determine what can be affordable. There are also limits. We have to look at individuals' incomes and make IPJE South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... sure that our benefits are geared to their being affordable —that the new housing is affordable to the individuals. So that's all done case by case, individually, and confidentially. MR. HUNT: Ann, you may want to go over that. Because of all the neighborhood meetings we've had where this has come up, the question of understanding relocation benefits and purchase price and their relationship is pretty important. In every meeting we've had to talk about the project, the ones Hedy has been at or that I've been at, that question's come up. Maybe you should walk through the acquisition plus relocation benefit. It can go up to $22,500. Ms. xoLATA: It's not an automatic $22,500. But it can be that high. It depends on what a comparable property costs, what you end up paying for a new house, and what you get from us in acquisition. But generally, the relocation benefits for owner /occupants are fairly generous and enable people to move into a situation that they can afford that is comparable to what they are in now in terms of their cost. A couple of other things: 1) we've had staff meeting at the Southeast Quality of Life meetings on a monthly basis. We will continue to go to those meetings on a monthly basis; 2) we are going to be sending letters to all of the residents of the area that need to be relocated to start collecting information and meeting with you -22- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... individually to start to determine (it isn't going to be a final determination) what your housing needs are and what your income information is so that we know approximately what you are looking for and can start giving you some sense of an idea on what will be available to each individual person, whether they are a tenant or a homeowner. MS. AUBURN: So, Ann, there are other mechanisms. You are having meetings out there so that people can come and learn about the mechanics. ANN Ms. KOLATA: But we would never discuss a particular individual's benefits at a group meeting. That's a confidential thing. We would do that one on one. So, while we could come to a group meeting and explain, in principal, what the benefits are, then what we would do is set up individual meetings with people so that that private information can be discussed. MS. ROBINSON: We have sent out letters to each property owner and resident to set up appointments starting next week to sit down with individual people to go over the relocation benefits. The other thing I want to add... Ann talked about the ninety -day requirement to vacate. We cannot ask you to vacate your property until we have provided at least one comparable property. So the ninety -day notice is not effective until that comparable property has been provided to you. -23- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... Ms. KOLATA: And that ninety days is ninety days after we possess the property. That's not ninety days from when we send the purchase offer. That's ninety days from the day we get control of the property. That could be as quickly or as slowly as it takes. MS. AUBURN: I just want the people in the audience to know that there are other meetings that you'll be having so that if you still have questions about the technical steps and the timing of some of those steps, that there will be other meetings, though groups or through individuals, where you can get some of those questions answered. INEZ BRACEY: I live at 404 E. Keasey. I would like to know, in case you take this property, will I get enough money to get another home that I don't have to be paying rent, because we're retired. Ms. KoLATA: That is exactly part of the discussion of relocation benefits that Hedy will work through with you. It depends on your circumstances and so on, but, yes, that's the intent of the relocation payment: to put you into a similar financial condition that you are in right now. JOHN WIGFALL: I have a cousin sitting in the back. Her husband and myself, we're buying houses from the same person. I look on this list and their name is on there. My name is not on there and we're under land contract, buying from the same person. -24- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... MS. KOLATA: Is your land contract recorded? MR. WIGFALL: I don't know. MS. KOLATA: It may not be. What you should do is get us a copy of your land contract and we'll sort through that. We deal with the owner of record from the title company. We double check that against the tax records. But we go with the information that shows on title work. If your land contract isn't recorded, you probably aren't showing up as the owner. But you should get us that information. MR. WIGFALL: I'm sure that it was sent in at the same time that Paulette's was sent in. MS. KOLATA: To be recorded? MR. WIGFALL: I don't know. MS. KOLATA: Recording means that its copied down in the public records. A lot of times land contracts are not recorded. Therefore it doesn't show up that you have an ownership interest. But we would be dealing with you as well as the land contract seller. So we need to get that information from you. MR. POLACK: 1010 S. Michigan Street. The local newspaper quoted Ann Kolata as saying that they are on a fast track. They want to build by next summer. What are we supposed to do in the meanwhile? Look for -25- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... a place? Stay put? How much time are we going to be allowed since you are going to be on a fast track? What track are you putting us on? Ms. KOLATA: This whole project is on a fast track, which means that we are going to try to start sending purchase offers within the next thirty days. We should be sending the first purchase offers out. It depends on when the appraisals come back. But once we start getting the purchase offers out, we will be negotiating. Once we send you a purchase offer, yes, you should start looking. I know some people have started looking now. It doesn't hurt to look, but do not move now and do not commit to buying now unless you are sure that you have another way of financing it, because until we send you a purchase offer, we are only intending to acquire your property. And so, we don't want somebody to go out on a limb. We intend to acquire your property, but until we send you the purchase offer it isn't final. It may be possible, if you found some piece of property, or anyone sees a house or something that they like, it may be possible to get an option that doesn't cost you much money and doesn't bind you beyond a certain period of time, but that's your own business and you should not move now. ms. AuBuRN: A couple of you have spoken before. Let me make sure that there are no other individuals that have not yet spoken that would like to. -26- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... KAREN HIGH: I'm here on behalf of Ethel Nyikos, 308 E. Wenger. I want you to know, she's lived there for over sixty years. The city's going to come and take this house away. I mean, she's lived there all her life. She's 82 years old and has to relocate and start all over again. How can they help her? MS. KOLATA: The same way we will help everyone else. That's on an individual basis. Working with her, determining what her housing needs are, what her desires are. Ms. HIGH: She's got sixty years worth of things in this house. It's a big house that's condensed into a little house. She's a nervous wreck about this. Ms. KoLATA: I understand that. And she's not alone. There are other people who are in that same position and have been in that position before. We try to understand the feelings. We will try to combine as many services as possible. This is not the first time we've encountered something like this. Part of the relocation payments can be things like counselling services to help deal with things like stress. That's an eligible relocation cost. There are a whole bunch of eligible relocation costs. If that becomes necessary, Hedy will be talking about that with individuals. It's sad to say, it won't be the first time. JACINTA POLACK WIELGOS: I'm one of the many daughters of Frank and Tina Polack at -27- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... 1010 S. Michigan. My question is directed to you, as well as to everybody. You just said that you're not trying to put everybody out on a limb right now, when, in fact, we are out on a limb. Does that clock start ticking when we get the notification of a purchase price? Does that give us a chance to negotiate a price with you, or is that a final thing? When does that clock stop ticking, if you get into a discussion that we don't agree with this price from these people that have given you this information? MS. KOLATA: That's a good point. If you want to call it " the clock starting to tick", it does start with the purchase offer being sent. We ask that you respond to the purchase offer within thirty days. It can be sooner than thirty days, but we want to hear from people within thirty days. If we are having negotiations, we do not cut off the clock at thirty days. As long as we are in a negotiation period, we will carry that out as long as we have to in order to come to some conclusion. MS. WIELGOS: How to you propose that they go and find a house if the price isn't negotiated on this? How are they supposed to go out and look for a home when you can't agree on a price? What are they supposed to do? MS. KOLATA:They will have, at least, the knowledge of what our price is. They will have some information on the relocation benefits, I won't say its the final number on la South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... the relocation benefits, because those are not determined until you find the house. MS. WIELGOS: Have you been out there to buy a house lately? Do you really think there are enough homes out there for this many buyers? Ms. KOLATA: That's why we suggest that people start to look and start to get an idea of where they want to go, what they are looking for, what's available. We understand the time between when you find a house and make an offer and have that offer accepted and closing. We certainly understand that. Ms wIELGos: Let me make this clear then. So then, earlier you said not to do anything, but now you are saying that you should kind of start looking? Get an idea of what's going on? Ms. KOLATA: That's up to you. I'm saying don't make a commitment to buy another house before you get a purchase offer from US. Ms. wIELGos: I can understand that and I agree with you on that point. But this limb thing "out on a limb" when we are on a limb bothers me because the time frame is critical. Because you said, " the clock starts ticking". And that doesn't give a chance for the people to... -29- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... Ms. KoLATA: Well, you're the one who said the clock starts ticking. MS. WIELGOS: Well, in essence, it does start ticking. You just said that. MS. KOLATA: It's true. But we try to be reasonable and allow people time to find another place and to move within a reasonable period of time. I can't give a thing that says that we will absolutely, positively, require you out on this day, because we're more flexible than that. What we want to know is that people are working with our staff, working to look to find something else. If they need help from our staff to go out and look for property, we will be doing that. Hedy will be reviewing what's currently available in the market and making information available to everyone who is looking for homes. That's part of our requirement. But, if somebody needs a ride to go look at a house, we will provide that service. The point is that you just can't .... I mean, that's one of the reasons we like to send the purchase offers as early as we can, because we realize people are in a position right now where you know it's coming, but you can't do anything about it until the purchase offer comes. We're trying to shorten that time schedule down. When I say we're on a fast track, that's what we're trying to shorten down. Not necessarily that you only have two weeks to get out. We don't do that to people. -30- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... Ms. wiELGos: Let me go back, then, with what you said earlier. With these appraisers that come in there and they come up with an appraisal, between the two of them, and you sit down with your staff and the other Commissioners, when you come up with this price, it's a total of the two, you said. Ms. KOLATA: It's an average of the two, generally. Ms. WIELGOS: Excuse me, an average of the two. You're correct in saying that. This average that you get, this is when you notify the people of this agreement price that you've come upon. If the people should so dispute this price, with this official notification, and you try to come in agreement with a price, what is a fair price? Do you, the staff, the Commission, Hedy? It sounds like she will be really busy. Is she going to come out there and look at this property? Or do you just sit from in here and decide? Do you actually go out to those people's homes, the homes that they've lived in all their lives, as an established business, and look and see what's going on in these places? Do you go in there and look, or not? Do you not even get involved in that point? Ms. KoLATA: I think that's twofold. As a rule we don't go into every single piece of property. At least I don't. Hedy goes and meets with most of the people being relocated and probably goes into almost everybody's home. That's up to the -31- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... homeowner, if they want to come meet with us here or whether they want us in their home. If somebody says, "Come out and look at my piece of property, we'll go out and look at their piece of property. That's up to the individual. But in response to how do we negotiate, we send you an offer based on our appraisals. You either agree with it or you disagree with it. If you disagree with it, you should make a counter offer. The Commission will make a determination as to whether they feel that that is a reasonable counter offer or not. And what are they basing that on? They are basing it on their expert appraisers and some judgement on their part and information provided by each homeowner. I can't sit here and say it happens this way or that way. It happens in the negotiating process. All our purchase offer does is say "this is what we're offering you for your property. " You have to respond to that. At that point we'll start talking to the individuals. If you want us to come out to your home, we'll do that. Some people don't want us to and we don't. But Hedy, as part of relocation, does go into many people's homes and does work with them on a personal basis. Ms AUBURN: Again, I want to say, that there are other meetings and individual meetings with Hedy and with Gabriel to answer technical kinds of questions. That is not the purpose of today's public hearing. I'm going to try to watch our time a little bit and still give everybody an opportunity to be heard. It's obvious that a couple of people -32- AN South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... in the audience have questions that they will need to follow up and meet with Ann or Hedy or Gabriel on an individual basis, to begin to get some of their individual questions and their particular situation worked out on an individual basis. The appraisers that we use are independent appraisers. It is their independent knowledge and their independent expertise that we rely on as a Commission. Also, as Commission members, Mike, Roman, and myself, and Mr. Faccenda, and Ted Sharp that are not here, on many occasions get phone calls from the public, many of them, sometimes, very angry and complaining phone calls. But I can tell you in all honesty: I've never received a phone call complaining about Hedy or Gabriel or the relocation process. I've received lots of complaints about the decisions that we've made, disagreements about the direction that we're taking as a Commission, but I've never had an individual who is being relocated and in that very tough, tough emotional situation, call and complain about how they were treated. Ms. Blacketor, you had another comment that you wanted to make. Nis. BLACKETOR: I have three questions: 1) the other meetings that you are referring to are an after thought, correct? And let me just finish my questions. They all kind of tie in together. The other meetings are after this public hearing has determined that we will move forward. It's my understanding -33- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... based on the legalities of the advertising, that the other meetings are after the fact. My second question: why the fast track, since Ivy Tech and the Juvenile Center funding have not been approved yet? Is there a business commitment in the neighborhood that we're not aware of? Finally, what residential areas and homes are available that have homes for less than $100,000 for this amount of people, or are we considering allowing these homeowners to build? Where will they go. MR. HUNT: On the one question, on the business commitment. Absolutely not. There's not one private sector interest that has come to me to say, "Gee, we're interested in the area. " Ms. KoLATA: The meetings with individuals, are they after the fact? They are after the public hearing. We've been meeting... There has not been a decision on this acquisition, but there has been no secret about the fact that we have been considering this area, that we have been meeting with neighborhood residents for months, we have been fielding phone calls, we have had some meetings with individuals who are affected, although I won't say that it's a large number of them. Ms. 13LACKETOR: The questions here that we're putting aside, really are not the key questions. The key question is whether the acquisition is acceptable to these homeowners. Do they accept this price. -34- JPN South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... Ms. KOLATA: I think that's what Ms. Auburn was just saying. Some of these are getting down to details of the process as opposed to the other. That's up to the public here today as to how they want to speak. Your question about why the fast track when the financing for Parkview or Ivy Tech is not in place, is partly, number one, Parkview, while they have a bond petition out now, ideally, would like to start construction sometime next year. Whether that goes forward now or not will obviously be a factor of their financing. But, the same reason that we want to move forward on a fast track is to allow people the time that they can then have, maybe, more than ninety days to move out. They're not up against a deadline and we can be more understanding and more lenient than the strict limits of what our responsibilities are. We don't want to get into a position where people have to move much faster and we can be more lenient on that. Frankly, we do expect that the Parkview project will be under way next year at this time. So, it's going to take time. People don't just move over night. Not this amount. In response to where do people go and what homes are available: First off, we don't select where people go. People go wherever they want to go. What we do is we look through multiple listing service as to what's currently on the market; we look through want ads in the newspaper as to what's currently on the market; we look at comparable homes. If somebody has a three -35- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... bedroom house, two story, one and a half baths, etc., we don't start comparing that to ranch style houses. We look for comparable houses in determining what their relocation payments are going to be. We may suggest certain things that are currently on the market, but that by no means means that somebody has to move into any of those homes. They are free to select wherever they want. It doesn't even have to be within St. Joseph County. It can be anywhere in the United States. We pay relocation benefits depending on where people go. People do sometimes move out of the community. Did you ask if somebody could build a house? MS. BLACKETOR: It's my experience, and I live on the southeast side. I don't live in the neighborhood here you're trying to buy. But it's my experience that there aren't any homes that are less than $100,000 right now in that community. On the north side of Ewing. And if you are clearing that area out, where will they go. MS. KOLATA:That's not correct. That's not correct. There are homes. MS. BLACKETOR: I was asking where they are. MS. KOLATA: There's a lot. Ms. AUBURN: They're in my neighborhood. -36- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... MS. MA1vIER: They're in my neighborhood Ms. KOLATA: We could sit down with a map... they're throughout the city. There are homes that are less than that. Ms. AUBURN: There's a gentleman in the back who would like to speak. S.E. PRICE: 139 E. Pennsylvania. I was wondering when they come out and check these properties and do they consider what the house is or what the house is bringing in? Is that included in? Ms. KOLATA: Is yours a rental property? MR. PRICE: Yes. Ms. KoLATA: They should be looking at both. Rental properties should have income considered. MR. PRICE: OK. That's what I want to know. MABEL HALL: 409 Wenger Street. They've already appraised my house. When will they be sending them out? MS. KOLATA: They've appraised the house? The reports have not all come into our office. We've just started to get the appraisal reports. They will not send you the appraisal. They send it to us. We will send a purchase offer. Our estimate is that we'll start sending purchase offers in thirty -37- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... days. Probably by the beginning of November. But I don't know whether that will be yours or not. We don't think we're going to send them all the same day. We don't think we'll be able to send them all the same day. MS. POLACK: I need to respond to Ann. She mentioned that if we ask you to come in to see your property, we would be more than happy to do so. I've invited you and Jon Hunt so many times and he tells me you go up and down Michigan Street, but I've yet to see you at our place. In the meantime, I've had the Historical Society at our place. Both societies suggested that we relocated. Have you any.... Yes you do have an idea, because you're in redevelopment. What faces us in relocating.... Ms. KOLATA: Moving the house, you mean? MS. POLACK: Yes, our residence and the business. Ms. KOLATA: I understand. MS. POLACK: Jon, himself, told me several months ago: get in touch with contractors, movers, electricians, plumbers. I mean, you name it. And which we did. It was a job for me. They all came down and it wasn't easy. Some of them told me, told my husband and me, that they would like an answer before the end of this year because of price change next year. So what do we do about stuff like that? -38- re South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... MS. KOLATA: You have the information, we'll try to get you your purchase offer as soon as possible, and, yes, we will consider house moves. We will consider moving houses and it will depend on a number of factors. We will consider that and I think that's a reasonable suggestion. MS. POLACK: And what about the choice of properties? Have you any idea how many properties, pieces of property there might be on South Michigan, away from the center of town. I don't want to be in the center of town any more. There aren't many. Ms. KOLATA: We understand that. We've driven up and down and I know some of the properties that look like they might be available, but I have no idea if they are available. Ms. AUBURN: Yes, Ma'am? ELECH McKELRY: I live at 216 E. Ohio. I wish to know about the fall tax. It's time to pay fall tax. MS. KOLATA: Yes, you should pay your taxes because they are basically for last year, payable (in the) next year. If you did not pay your taxes, when we go to buy your property that would be one of the first things that we would take care of. Some of your money would go to pay your delinquent taxes. So if any of you have property taxes that you have to pay, you should pay them. And they are for last year. This is '92 -39- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... payable '93. Your '93 taxes, payable '94. If we were to buy your house still in '93, there would be portion of your tax that would not be payable next year, but by that time you'll be in another house and you'll have taxes on the other house. TINA POLACK: I have one more question. Ms. AUBURN: I'm going to let this be the last question and then I'm going to close the public portion of the meeting. MR. POLACK: I thought this was a public hearing. MS. AUBURN: It is. MR. POLACK: Then let it be a public hearing. Ms. AUBURN: Excuse me, Mr. Polack. But she is going to speak. And you've been able to speak... and you've been able to speak also. MR. POLACK: Don't limit us, it's a public hearing. Ms. AUBURN: So please, be quite. And let your daughter speak. Ms. POLACK: The problem, the situation that's facing all of us here, I mean, excuse the expression, come hell or high water it's going to be done, no matter how we look at it. Other than the fact of hoping the -40- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... transition for a majority of the people here will go as smooth as possible and everybody will be treated as fairly and honestly as possible, relocating them in areas that's going to be comparable as well as price in certain areas. Yet, with what we're looking at here, for us, ourselves, when we met with the Mayor a couple of weeks ago and we told him that we needed some kind of decision for us because we do have a business ... I have two businesses in this place, and my parents live there. And I need to have something, as well as very accommodating to our traffic flow area of where we are located right now. And we were told by the Mayor, well don't move too fast because nothing has really been decided. Throughout the course of this meeting, on two different occasions, we've been told, well, maybe you should go looking. It won't hurt. Then we were told, no, don't start looking until you get the purchase contract. MS. KOLATA: No, that is not what I said. Ms. POLACK: No, now we're told again, go ahead and we're going to send out purchase contracts in thirty days. And we're going to have a certain amount of time to go ahead and remonstrate against the decision of the purchase contract, but then after the thirty days we have a ninety day period... Ms. KOLATA: No, no... You're misinformed. You're not listening to what's being said. Number one, if you want to go look at -41- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... things now, you can do that. What I said was, don't make commitments that you cannot follow through on without our purchase offer. Don't go buy another house. Don't go buy another piece of property. MS. POLACK: I know about commitments. I'm not looking at commitments. But when we're looking at other homes out there, homes are on the market for a certain amount of time before someone else may come along and purchase them. Now, we're going to lose that kind of home that we have looked at, or possibly that part of a business, as far as the places we're looking at, because of not making a decision right now... Ms. KoLATA: I think I know the answer to this. Are you saying that you would like us to send your purchase offer as soon as possible? Is that what you're saying? Ms. POLACK: Yes, I think all of us before we... Ms. KOLATA: I'm not asking all of you, I'm asking for you and your parents, do you want your purchase offer as soon as possible? MS. POLACK: Yes, we'd like to know what's going on. MS. KOLATA: We will try to accommodate that. To the best that we can. We have to -42- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... wait for our appraisals to come back in. But we will try to accommodate that. MS. POLACK: (Turning to the rest of the audience) And do you want your purchase contracts as soon as possible? So you know what you are doing? Ms. xoLATA: We are trying. And that is my comment about trying to put it on a fast track and sending them as rapidly as we can. But we can't send them any faster than we get the appraisals in. We have to read the appraisals and we have to review them. And I will defy anybody to read 400 appraisals over night. You cannot do that. And we have to review them. We have to make sure that our appraisals are in, that we have read them, that the staff has reviewed them. We will do them as rapidly as we can. We will send purchase offers as rapidly as we can. But I can't guarantee what day that's going to be. And we will try to do that as rapidly as possible. One, thing, if you do get a purchase offer and you know of a piece of property that you want to move to, then you need to give a response on that other piece of property, then you need to get back to us pretty rapidly and let us know that, too. I mean, if you've got a house out there that you want to move into, don't wait the thirty days. The other thing I take exception to is that I said that the ninety -day period begins when we take possession. So, let's say you take -43- AM South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... thirty days to accept our purchase offer and then it takes us another two weeks, four weeks to close on the property, the ninety days doesn't start until we close on the property. If we do not agree on price and this goes through court, it will be even longer because we will not have possession for several months. And then the ninety days begins from the time that the court gives us possession. So, minimum, it sounds like everybody is going to get about one hundred twenty days — minimum. And it could be far longer than that. It could be faster than that if people want it to be faster than that. But, it could be at least that long. Ms. AuBuRN: I have a question for Hedy and Gabriel. When you go out and when you begin to meet with individuals, do you sit down and go through the process and the time frame and kind of work with them on that? MS. ROBINSON: Yes, we do. We go through the entire process. Ms. AuBuRN: So you spend some time with each ... MS ROBINSON: Yes, we do. I'd like to say something. There are a lot of realtors out there that are dying to started working with people. I would suggest, strongly, before you enter into a contract, please talk to me. One of the requirements, the property that you are buying has to meet the requirements of being decent, safe and sanitary. We have -44- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... to do an inspection. If that is not in the contract and you sign, you're going to be made to buy that property. So, please contact me because there is a process that we have to go through before that property can be acquired. Please work with me. I can't stress that any stronger. Ms. KOLATA: We will send purchase offers in the order in which we get the appraisals. And we need two appraisals for each property. I think most of the inspections have been done. They are writing reports. They are mailing them in. If that means we start on Ohio Street or we start on Keasey Street, or we start on Michigan Street, it will be a function of when the appraisals come in and in what order they come in. And that is not within our control. All I can tell you is that we will go through them as rapidly as we can. We've been anticipating all of this coming into the office. We're trying to gear up for it. We think we are in fairly decent shape for reviewing them. But you just don't do it all in one night. Ms. AUBURN: Is there anyone who has not yet spoken who wants to? CLAUDIA BURKS: 2615 Westmore. Do we get to know what the property was appraised at? Ms. KoLATA: No. Not the individual values. You get a purchase offer based on the appraisals. Generally, it is the average of the two. The law does not allow us to go -45- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... higher than the average of the two. Our purchase offer cannot exceed the average of the two. That doesn't mean that it can be the final settlement, but our offer cannot exceed that. Ms. AUBURN: Is there anyone else who has not spoken who would like to speak? MOFFETT: 1206 N. Johnson. I'm here on behalf of my father, O.C. Peterson, 236 E. Paris Street. What I wanted to know, did you say that you would assist tenants in relocating? Ms. KOLATA: Yes. And we will do whatever it takes. We find people that know what they want, they go out, they contact a realtor, they buy their own piece of property and all we do is pay the bills. And we have other people who need a lot of assistance and we help them. It just really depends on the individual. Ms. POLACK: Can I say something again? Ann this is directed to you. Clarify something. When these appraisals come in and we don't get a copy, maybe I misunderstood something. Why don't we get a copy? Ms. KoLATA: Because of state law says they are solely for the use of the Commission. Ms. POLACK: What would happen if we went out on our own and had these people come back and we paid them? Do you know what -46- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... I mean, so that we had an idea? The same people who did it for you. If we paid these people out of our own pocket. And I'm just saying so we know ourselves. Ms. KOLATA: I don't believe they would take that assignment. I think you would have to get someone else. There are certain standards for appraisers and my guess is that they would not, having appraised the property for us, they would not appraise it for you. They would turn down the assignment. But you would be certainly free to go somewhere else. To get someone with similar qualifications and have them do the appraisal. Ms. AUBURN: I'm going to close the Public Hearing and take questions from the Commission. Mr. Piasecki commented that this meeting is similar to the Public Hearing held for the Airport 2010 acquisition. There were many objections and many proposals. Not one of those people who objected to being moved ended up unhappy. Mr. Piasecki received letters and phone calls from those people saying they were perfectly happy. Also, from other areas where we acquired property, none of the people are unhappy with the results. He is sure everyone present today will be happy with the results. Ms. Auburn thanked everyone who came for the Public Hearing, These kinds of situations are never easy. She noted that as -47- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) a. continued... Commission members, they take their charge very seriously. It may not always look that way, but they do everything in their power to make it as fair and humane a process as possible. b. Commission approval requested for Resolution No. 1193. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1193 amending the Development Plan for the Sample -Ewing Development Area. C. Commission approval requested for proposal for Real Estate Services for Commission property. Mrs. Kolata noted that Coldwell Banker and Holladay Corporation made presentations at the last Commission meeting to perform real estate services for the Commission in redevelopment areas. Both firms are very well qualified and the choice is a difficult one. The staff has no recommendation to make. Ms. Auburn stated that she favored the proposal from Coldwell Banker because of the networking system they have in place for reaching the Chicago and Detroit markets. Mr. Donoho stated that he, also, favored Coldwell Banker as their presentation indicated a greater ability to tap the Midwest markets. COMMISSION APPROVED RESOLUTION NO. 1193 AMENDING THE DEVELOPMENT PLAN FOR THE SAMPLE -EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) C. continued... Mr. Piasecki, although he would have liked to see the work split between the two companies, agreed that, if he had to choose one, it was Coldwell Banker. Both Mr. Ellison and Ms. Litell agreed that, the decision being made on who will market the property, they could both work together in the market place to sell it. Upon a motion by Mr. Donoho, seconded COMMISSION APPROVED THE PROPOSAL by Mr. Piasecki and unanimously carried, FROM COLDWELL BANKER FOR REAL the Commission approved the proposal from ESTATE SERVICES FOR COMMISSION Coldwell Banker for Real Estate Services for PROPERTY Commission property. d. Staff report on disposition of land in the Sample - Ewing Development Area. Mr. Okafor noted that Richard Allen submitted a counter offer for Disposition Parcel 23 in the Sample -Ewing Development Area. The property is located at Main and Broadway. Mr. Allen proposes to construct, initially eight units of flexible light industrial space. The construction will be carried out in two phases. Phase one will be the eight units, the curbs, sidewalks and landscaping, breaking ground in November 1993. The second phase will be four additional units. Completion of Phase I will be within eight months of ground breaking. Total project cost will be $375,500. The staff recommends approving the proposal. Mrs. Kolata noted that the minimum bid price for this property was $40,500. Mr. -49- South Bend Redevelopment Commission Regular Meeting - October 1, 1993 6. NEW BUSINESS (Cont.) d. continued... Allen's original proposal included the provision that the City do the sidewalks and landscaping. He has agreed to do that himself and reduced his purchase offer by that cost. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission accepted the proposal from Richard Allen for Disposition Parcel 23 in the Sample -Ewing Development Area in the amount of $26,000. e. Staff report on disposition of property in the Airport Economic Development Area. Mrs. Kolata asked that item 6.e. be tabled. f. Commission approval requested for Resolution No. 1195 transferring property in the Sample -Ewing Development Area. Mrs. Kolata explained that Parcel K of Block 10 is a long, thin piece of land (26'x403') that will be conveyed to Howard Goodhew. It was part of the negotiations on the purchase of land from Mr. Goodhew to clean up the ownership of that block. Approval of this resolution allows us to execute a deed to Mr. Goodhew. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1195 transferring property in the Sample - Ewing Development Area. -50- COMMISSION ACCEPTED THE PROPOSAL FROM RICHARD ALLEN FOR DISPOSITION PARCEL 23 IN THE SAMPLE -EWING DEVELOPMENT AREA IN THE AMOUNT OF $26,000 ITEM 6.E. WAS TABLED COMMISSION APPROVED RESOLUTION NO. 1195 TRANSFERRING PROPERTY IN THE SAMPLE -EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - October 1, 1993 7. PROGRESS REPORTS Mrs. Kolata reported that Jon Hunt received the Ivan H. Brinegar Municipal Managemetn Award at the Annual Conference of the Indiana Association of Cities and Towns. Mr. Hunt was recognized for his public service. 8. NEXT COMMISSION MEETING PROGRESS REPORTS The next Regular Meeting of the Redevelopment NEXT COMMISSION MEETING Commission is scheduled for Friday, October 15, 1993 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before ADJOURNMENT the Commission, Mr. Donoho made a motion that the meeting be adjourned. Mr. Piasecki seconded the motion and the meeting was adjourned at 11:4 a.m. Paula N. Auburn, President Ann . Kolata, Director -51- NEMETH, MASTERS & LEONE ATTORNEYS AT LAw SurrE 307 Nomm BANK BUILDING CHARLES S. LEONE 112 WEST JEFFERSON BOULEVARD JAMES A. MASTERS Soum BEND, INDIANA 46601 JOHN D.STODDARD TELEPHONE(219)234 -0121 FACSIMILE (219) 234 -8054 September 30, 1993 Ms. Paula A. Auburn, President Redevelopment Commission 1200 County -City Building 227 West Jefferson Blvd. South Bend, IN 46601 Hand Delivered PETER F. NEMETH DEVmm D.GoHEEN JOSEPH S. DONNELLY OF COUNSEL La 1993 RE: Resolution No. 1193 Sample Ewing Development Plan Dear Ms. Auburn and Members of the Redevelopment Commission: This letter is addressed to you on behalf of my clients, Frank T. and Justine H. Polack, owners of real estate located at 1010 South Michigan Street, South Bend, Indiana (Tax Key Nos. 18- 7001 -0025; 18- 7001 - 0094). Mr. and Mrs. Polack hereby remonstrate against the proposed Sample Ewing Development Plan and the proposed amendment to the Plan. The basis for this remonstrance is that Mr. and Mrs. Polack's property sought to be acquired by the Redevelopment Commission is not within an area which is blighted to an extent that can not be corrected by regulatory processes or by the ordinary operations of private enterprise within the meaning and intent of I.C. 36- 7- 14 -15, and that the property to be acquired is not needed for a project of public utility and benefit. The property owned by Mr. and Mrs. Polack is their home and office and is in active use. Other properties located adjacent to Mr. and Mrs. Polack, to the South and especially along the East side of South Michigan Street, are commercial properties also in active use. There is no legal or factual basis to find the Polack property to be blighted or that the property is needed for a public purpose. Mr. and Mrs. Polack request that you not include their property in the Sample Ewing Development Area Plan. Thank you for your kind attention to this matter. Very truly yours, Jes A. JAM: lad \F: Masters \Polack. Ltr cc: Ann E. Kolata, Director Frank T. Justine H. Polack Masters r SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING December 17, 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. Philip Faccenda Members Absent: Mr. Michael Donoho Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann Kolata, Director Mr. Jon Hunt, Executive Director Mrs. Cheryl Phipps, Recording Secretary Mr. Gabriel Okafor, Economic Dev. Specialist Mr. Larry Magliozzi, 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 Ms. Julie Ludwig, The Colfax Group Mr. Leo Trevino 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday, December 3, 1993. Upon a motion by Mr. Faccenda, seconded by Mr. Sharp and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, December 3, 1993. -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, DECEMBER 3, 1993 South Bend Redevelopment Commission Regular Meeting - December 17, 1993 3. APPROVAL OF CLAIMS Claims Submitted December 17, 1993 for Approval ADMIN 1993 Equipment Services $ 19.97 Billie's Catering 37.50 South Bend Drafting 49.82 General Fund 77.62 Tri County News 37.77 Indiana Youth Institute 12.50 Code Enforcement 34.50 South Bend Tribune 24.96 York Title & Escrow, Inc. 316.00 Indiana Michigan Power Co. 9.11 South Bend Tribune 40.73 Peirce & Associates, Inc. 75.00 Mobile Comm 190.00 United Parcel Service 9.00 TOTAL $ 934.48 S.B.C.D.A. TIF - GENERAL ACCOUNT (420 South Bend Public Transportation $ 130, 864.00 Rick Walls 1,166.66 Jordan's Mishawaka Transfer, Inc. 29,902.17 H.J. Umbaugh & Associates 5,657.00 Economic Research Associates 5,000.00 Real Estate Management Corp. 1,194.28 South Bend Water Works 140.00 NIPSCO 342.22 Acrey Plumbing & Heating 6.95 Johnstone Supply 100.34 Ken Herceg & Associates 3,488.57 Indiana Michigan Power Co. 378.88 Howard Park Hardware 17.49 Joseph A. Dzierla & Associates 2,050.00 Leedy /Cripe Architects, P.C. 1,207.10 TOTAL $ 181, 515.66 2 South Bend Redevelopment Commission Regular Meeting - December 17, 1993 3. APPROVAL OF CLAIMS (Cont.) SAMPLE -EWING DEVELOPMENT AREA (414) Douglas L. Carpenter Peirce & Associates, Inc. Jerome E. Michaels York Title & Escrow Ken Herceg & Associates, Inc. South Bend Water Works TOTAL HALL OF FAME (437) National Football Foundation Verkler, Inc. Donna Lawrence Productions TOTAL GRAND TOTAL . Upon a motion by Mr. Sharp, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Claims submitted December 17, 1993. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS a. Commission approval requested for Certificate of Completion for Disposition Parcel 9B in the Sample - Ewing Development Area. (McClurg Leasing) Mrs. Kolata noted that at the December 3 meeting the staff was asked to review the landscaping at the Wheel & Rim site to see if they had fulfilled their obligations as originally proposed. The staff has reviewed -3- $ 3,233.39 1,968.00 23,700.00 11,880.00 3,097.00 10.741.16 $ 54,619.55 $ 5,879.45 30,000.00 90, 802.84 $ 126,682.29 $ 363,751.98 COMMISSION APPROVED CLAIMS SUBMITTED DECEMBER 17, 1993 THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Regular Meeting - December 17, 1993 5. OLD BUSINESS (Cont.) a. continued... the landscaping and, although some of the plants are small, they are what was approved. There are a number of bushes that have been cut back for the winter which also make the site look bare. Also, the sidewalk has been completed and the grading of the lot has been done and trees were to be planted along Main and Garst Street. The staff recommends approving the Certificate of Completion. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Certificate of Completion for Disposition Parcel 9B in the Sample -Ewing Development Area. (McClurg Leasing) 6. NEW BUSINESS a. Receipt of Bids for Disposition of Property in the South Bend Central Development Area. (611 S. Clinton) Mrs. Kolata noted that as of 10:00 a.m. this morning there were no bids received for this parcel. The parcel was previously put up for bid as a lease- purchase offering and the Commission accepted an offer from Watseka Theater Corporation. However, we would now like to sell the property to Watseka outright. Since there were no other bids, we will proceed with the sale. Mrs. Kolata asked permission to consider item 6.i. at this time. There was no objection and the item was so considered. -4- COMMISSION APPROVED THE CERTIFICATE OF COMPLETION FOR DISPOSITION PARCEL 9B IN THE SAMPLE -EWING DEVELOPMENT AREA (MCCLURG LEASING) CW South Bend Redevelopment Commission Regular Meeting - December 17, 1993 6. NEW BUSINESS (Cont.) i. Commission approval requested for Amendment to Contract with Economic Research Associates. Mr. Hunt noted that the Commission entered into a contract with Economic Research Associates approximately six weeks ago for analysis of the location options for the Studebaker Museum. They have performed many interviews. However, we have asked ERA to expand their report to include analyzing the impact of the museum locating outside of the downtown. The cost of the additional work would increase the contract from $5,000 to $9,000. The report is expected to be ready within two weeks. Upon a motion by Mr. Faccenda, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Amendment to Contract with Economics Research Associates. Mrs. Kolata asked permission to consider items 6.f. and 6.g. next on the agenda. There was no objection and the items were so moved. f. Commission approval requested for Resolution No. 1208 determining to pay certain expenses incurred for local public improvements in or serving the South Bend Central Allocation Area (South Bend Allocation Area No. IA) from the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) Special Fund. Mrs. Kolata explained that Resolution No. 1208 proposes to appropriate $450,000 52 COMMISSION APPROVED THE AMENDMENT TO CONTRACT WITH ECONOMICS RESEARCH ASSOCIATES South Bend Redevelopment Commission Regular Meeting - December 17, 1993 6. NEW BUSINESS (Cont.) f. continued... in 1994 to be used for local public improvements in the South Bend Central Development Area and sets a public hearing on that appropriation for January 4, 1994 at 10:00 a.m. The amount of the appropriation is based on the cash we currently have from TIF funds in the area and on projected tax proceeds after our other obligations from TIF funds are met. Upon a motion by Mr. Sharp, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1208 determining to pay certain expenses incurred for local public improvements in or serving the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) from the South Bend Central Allocation Area (South Bend Allocation Area No. IA) Special Fund. g. Commission approval requested for Resolution No. 1209 determining to pay certain expenses incurred for local publi c improvements in or serving the Sample - Ewing Allocation Area (South Bend Allocation Area No. 8) from the Sample - Ewing Allocation Area (South Bend Allocation Area No. 8) Special Fund. Mrs. Kolata noted that Resolution No. 1209 proposes to appropriate $1,800,000 in 1994 to be used for local public improvements in the Sample Ewing Development Area and sets a public hearing on that appropriation for January 4, 1994 at 10:00 a.m. EM COMMISSION APPROVED RESOLUTION NO. 1208 DETERMINING TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 1A) FROM THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 1A) SPECIAL FUND South Bend Redevelopment Commission Regular Meeting - December 17, 1993 6. NEW BUSINESS (Cont.) g. continued... Mr. Sharp asked if there were identified projects for these funds. Mrs. Kolata responded that we are in the process of putting together the budgets for these areas now. The Sample -Ewing funds will be used mostly for acquisition and relocation activities in the area ordered by Michigan, High, Sample and Broadway. We will use some of the money for curb and sidewalk work as well. The SBCDA funds will be used for public improvements related to the reuse of Central High School and other activities. Upon a motion by Mr. Piasecki, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1209 determining to pay certain expenses incurred for local public improvements in the Sample - Ewing Development Area and sets a public hearing on that appropriation for January 4, 1994 at 10:00 a.m. b. Filing of Resolution No. 1205 amending the South Bend Central Development Area Development Plan. Mrs. Kolata noted that Resolution No. 1205 adds one parcel of property to the acquisition list of the South Bend Central Development Area Development Plan. The owner of Design Packaging would like the Commission to acquire that property at 600 N. Niles Avenue. The public hearing on this resolution will be January 4, 1994 at 10:00 a.m. -7- COMMISSION APPROVED RESOLUTION NO. 1209 DETERMINING TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN THE SAMPLE -EWING DEVELOPMENT AREA AND SETS A PUBLIC HEARING ON THAT APPROPRIATION FOR JANUARY 4, 1994 AT 10:00 A. M South Bend Redevelopment Commission Regular Meeting - December 17, 1993 6. NEW BUSINESS (Cont.) b. continued... Upon a motion by Mr. Faccenda, seconded by Mr. Piasecki and unanimously carried, the Commission accepted Resolution No. 1205 for filing and set a public hearing for January 4, 1994 on Resolution No. 1205. c. Commission approval requested for Resolution No. 1206 related to acquisition of property in the Sample-Ewing Dpment Area by Eminent Domain. Mrs. Kolata explained that Resolution No. 1206 approves the purchase price for nineteen more properties in the Sample - Ewing Development Area and authorizes the use of eminent domain to acquire the properties if we cannot come to agreement on price. This brings the total number of purchase offers authorized to 161. Upon a motion by Mr. Piasecki, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1206 related to acquisition of property in the Sample -Ewing Development Area by Eminent Domain. d. Staff report on acquisition of propert y in the Sample - Ewing Development Area. Mrs. Kolata noted that we have received a counter offer in the amount of $650 from Elmo and Everett Bolinger for their property at 208 E. Ohio. Our purchase offer was for $488. The staff recommends accepting the counter offer. COMMISSION ACCEPTED RESOLUTION NO. 1205 FOR FILING AND SET A PUBLIC HEARING FOR JANUARY 4, 1994 ON RESOLUTION NO. 1205 COMMISSION APPROVED RESOLUTION NO. 1206 RELATED TO ACQUISITION OF PROPERTY IN THE SAMPLE -EWING DEVELOPMENT AREA BY EMINENT DOMAIN South Bend Redevelopment Commission Regular Meeting - December 17, 1993 6. NEW BUSINESS (Cont.) d. continued... Upon a motion by Mr. Faccenda, seconded COMMISSION ACCEPTED THE COUNTER by Mr. Sharp and unanimously carried, the OFFER IN THE AMOUNT OF $650 FROM Commission accepted the counter offer in the ELMO AND EVERETT BOLINGER FOR amount of $650 from Elmo and Everett PROPERTY LOCATED AT 208 E. OHIO Bolinger for property located at 208 E. Ohio. Mrs. Kolata noted that we have received a counter offer in the amount of $21,000 from Juanita Donaldson for her property at 218 E. Ohio. Our purchase offer was for $19,250. The staff recommends accepting the counter offer. Upon a motion by Mr. Faccenda, seconded by Mr. Sharp and unanimously carried, the Commission accepted the counter offer in the amount of $21,000 from Juanita Donaldson for property located at 218 E. Ohio. Mrs. Kolata noted that we have received a counter offer in the amount of $600 from Juanita Donaldson for her property at 220 E. Ohio. Our purchase offer was for $488. The staff recommends accepting the counter offer. Upon a motion by Mr. Faccenda, seconded by Mr. Sharp and unanimously carried, the Commission accepted the counter offer in the amount of $600 from Juanita Donaldson for property located at 220 E. Ohio. Mrs. Kolata noted that we have received a counter offer in the amount of $1,300 from Charles and Esther Marsh for their property at 129 E. Keasey. Our purchase offer was for $1,013. The staff recommends accepting the counter offer. la COMMISSION ACCEPTED THE COUNTER OFFER IN THE AMOUNT OF $21,000 FROM JUANITA DONALDSON FOR PROPERTY LOCATED AT 218 E. OHIO COMMISSION ACCEPTED THE COUNTER OFFER IN THE AMOUNT OF $600 FROM JUANITA DONALDSON FOR PROPERTY LOCATED AT 220 E. OHIO South Bend Redevelopment Commission Regular Meeting - December 17, 1993 6. NEW BUSINESS (Cont.) d. continued... Upon a motion by Mr. Faccenda, seconded COMMISSION ACCEPTED THE COUNTER by Mr. Sharp and unanimously carried, the OFFER IN THE AMOUNT OF $1,300 FROM Commission accepted the counter offer in the CHARLES AND ESTHER MARSH FOR amount of $1,300 from Charles and Esther PROPERTY LOCATED AT 129 E. KEASEY Marsh for property located at 129 E. Keasey. e. Commission approval requested for Resolution No. 1207 designating the Sample - Ewing Development Area, declaring the Sample -Ewing Development Area to be blighted, approving a development plan and conditions under which relocation ,payments will be made, and establishing an allocation area for purposes of tax incremental financing. Mrs. Manier noted that the Commission considered and approved Resolution No. 1151 designating the Sample -Ewing Development Area last spring. Further review of those actions led to the discovery of a procedural deficiency in the notice that was published in the Tri- County News concerning the public hearing. We have determined that it is in our best interest to repeat the declaratory process. Mr. Magliozzi outlined the Development Plan for the Sample -Ewing Development Area. The plan is essentially the same as was approved previously, except that it incorporates the acquisition list that was approved by later resolution. The new redevelopment area combines two existing redevelopment areas, the Studebaker -10- South Bend Redevelopment Commission Regular Meeting - December 17, 1993 6. NEW BUSINESS (Cont.) e. continued... Corridor Development Area and the Rum Village Industrial Park, with adjacent residential areas to their east to create the Sample -Ewing Development Area. The new development area is approximately 2,400 acres. It is sub - divided into five sub -areas for planning purposes: the Rum Village Industrial District, the Studebaker Corridor, the Indiana - Sample Industrial Corridor, Rum Village Neighborhood, and the Southeast Neighborhood. Mr. Magliozzi pointed out that this area is in what was the historical industrial and residential heart of South Bend. The Southeast Neighborhood and the Rum Village Neighborhood are among the oldest neighborhoods in South Bend. They originally housed the employees of the businesses located in the large industrial areas. The commercial areas along Indiana Avenue and Main and Michigan Streets developed logically between the workers homes and their employment. With the demise of Oliver Chilled Plow, Studebaker, and White Farm, the neighborhoods declined dramatically, especially the Southeast Neighborhood. There has been a significant drop in the number of housing units as well as in the value of the housing. With the decline in the neighborhoods, the commercial area also declined. There are many abandoned or under - utilized industrial buildings in the Studebaker Corridor and the Rum Village Industrial Park has never fully -11- South Bend Redevelopment Commission Regular Meeting - December 17, 1993 6. NEW BUSINESS (Cont.) e. continued... developed to its potential because of unstable soil conditions in the area. The transportation network in the area, consisting of the major arterials Michigan/Main Streets, Sample Street, Ewing, and State Road 23, is a unifying factor. It will be key to making this area attractive for redevelopment. There is also excellent railroad coverage in this area, although much of it has been abandoned. Mr. Magliozzi noted that there are several impediments to development in these areas: 1) large vacant, abandoned buildings in the Studebaker Corridor which must be torn down; 2) the muck in the Rum Village Industrial Park which must be removed to make that land usable; 3) accelerated neighborhood decline in the Southeast Neighborhood; 4) the beginning of deterioration in the Rum Village Neighborhood which needs to be stopped; and 5) the deteriorated commercial areas along Indiana Avenue in particular. The development plan has a three -fold purpose: 1) to establish a vision and strategy for redevelopment, revitalization, improvement, and preservation of this area; 2) to merge two existing redevelopment areas and tax incremental allocation areas; and 3) to establish a framework for a detailed planning program that involves the residents, the businesses, the civic and institutional partners for each of the sub -areas mentioned earlier. -12- South Bend Redevelopment Commission Regular Meeting - December 17, 1993 6. NEW BUSINESS (Cont.) e. continued... We have outlined several strategies for addressing the needs in this area. The public sector must provide investment to be the catalyst for redevelopment. Social, economic, physical, and organizational issues will be planned together. Public funds must be leveraged to encourage private development. There must be development of private sector leadership. The objectives of this project are: to increase the tax base, increase investment in this area, stabilize various sections of the area, revitalize various sections, strengthen two of the oldest neighborhoods in South Bend, create a public private organizational network that will help establish this area through time, establish strong, unifying and structural urban design guidelines, increase the level of private investment, retain and increase jobs, and generate funding sources. Activities have been divided into two types: fiscal and social/financial. The fiscal activities include architectural, engineering, survey, appraisal, soil testing, acquisition and relocation, site clearance, site assemblage, rehab, disposition, and public works. The anticipated social/financial activities include housing rehab, homeowner assistance, business assistance, and job match assistance. The five sub -areas have been subdivided into sectors for planning purposes. The primary goal for the north sector of the Southeast sub- area is general redevelopment. There are -13- South Bend Redevelopment Commission Regular Meeting - December 17, 1993 6. NEW BUSINESS (Cont.) e. continued... very few homes left and IVY Tech, Parkview Juvenile Center, the Family and Children's Center, and the relocated Dean Johnson Park will dominate that sector. The goal for the central sector of the Southeast sub -area will be revitalization of the neighborhood. There is a high percentage of rental housing which is a major cause of the residential deterioration. The goal for the south sector will be improvement, concentrating on urban design. The South Bend Community School Corporation plans to build a new Riley High School in this sector. The goal for three sectors of the Studebaker Corridor /South Gateway sub -area will be redevelopment. In the fourth sector we will emphasize strengthening existing businesses. The goal for the Rum Village Industrial District sub -area will be demucking, environmental testing, capitalizing on railroad access and by -pass access to encourage development, and improving Olive Road and land use along Olive Road. The goal for the Sample- Indiana Industrial District will be to improve the edges where it abuts residential areas or the downtown through urban design and deal with the environmental contamination that is likely present there. The goal for the Rum Village Neighborhood sub -area is to stabilize it. Although this is the better of the two neighborhoods, there are -14- South Bend Redevelopment Commission Regular Meeting - December 17, 1993 6. NEW BUSINESS (Cont.) e. continued... some pockets of deterioration that should be stopped before they spread. Upon a motion by Mr. Sharp, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1207 designating the Sample -Ewing Development Area, declaring the Sample -Ewing Development Area to be blighted, approving a development plan and conditions under which relocation payments will be made, and establishing an allocation area for purposes of tax incremental financing. Adfth h. Commission approval requested for Resolution No. 1212 accepting the transfer of real property from the City of South Bend. Mrs. Kolata explained that Resolution No. 1212 agrees to accept the transfer of seventeen lots within the southeast neighborhood that are currently owned by the City of South Bend. The Board of Public Works will consider a similar resolution on December 20. There are other publicly owned lots in the area which we intend to have transferred to the Commission, but there is not clear title on them at this time. Upon a motion by Mr. Piasecki, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1212 accepting the transfer of real property from the City of South Bend. -15- COMMISSION APPROVED RESOLUTION NO. 1207 DESIGNATING THE SAMPLE - EWING DEVELOPMENT AREA, DECLARING THE SAMPLE -EWING DEVELOPMENT AREA TO BE BLIGHTED, APPROVING A DEVELOPMENT PLAN AND CONDITIONS UNDER WHICH RELOCATION PAYMENTS WILL BE MADE, AND ESTABLISHING AN ALLOCATION AREA FOR PURPOSES OF TAX INCREMENTAL FINANCING COMMISSION APPROVED RESOLUTION NO. 1212 ACCEPTING THE TRANSFER OF REAL PROPERTY FROM THE CITY OF SOUTH BEND AFPN South Bend Redevelopment Commission Regular Meeting - December 17, 1993 6. NEW BUSINESS (Cont.) Commission approval requested for Proposal from Ken Herceg & Associates for Professional Services in the South Bend Central Development Area. (State Theater) Mrs. Kolata noted that before the Commission sold the State Theater we had hired Ken Herceg to design a fire escape. The owner would like a different design and we have asked Ken Herceg to submit a proposal for the additional work and make several inspections during installation. The total fee would not exceed $5,000. The staff recommends accepting the proposal. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved the Proposal from Ken Herceg & Associates in an amount not to exceed $5,000 for professional services related to the redesign of a fire escape for the State Theater. k. Commission approval requested for Easement for Indiana Michigan Power Company related to Stephenson Mill Apartments in the South Bend Central Development Area. Mrs. Kolata explained that this easement will allow I & M to hook up electricity to the building. The Commission retained ownership of the surrounding property when the Alexander Company bought the Opelika Building. So the easement would cross Commission property. -16- COMMISSION APPROVED THE PROPOSAL FROM KEN HERCEG & ASSOCIATES IN AN AMOUNT NOT TO EXCEED $5,000 FOR PROFESSIONAL SERVICES RELATED TO THE REDESIGN OF A FIRE ESCAPE FOR THE STATE THEATER South Bend Redevelopment Commission Regular Meeting - December 17, 1993 6. NEW BUSINESS (Cont.) k. continued... Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Easement for Indiana Michigan Power Company related to Stephenson Mill Apartments in the South Bend Central Development Area. 1. Commission consideration and action on donation of real property in the South Bend Central Development Area. (Driesbach Building) Ms. Kolata noted that Tom Driesbach offered to donate their former dealership property to the Commission. The property is 3/4 of a block along the east side of Michigan Street south of South Street. It includes the dealership building and two smaller structures. Besides offering the property to the Commission, they agree to have the fuel oil tanks removed at their expense. In return, they are asking that any unpaid taxes be paid by the City and that the Commission retain ownership of the building for at least two years. Mrs. Kolata noted that the staff recommends accepting the donation. This is an important block in an area where we have been doing some planning. COMMISSION APPROVED THE EASEMENT FOR INDIANA MICHIGAN POWER COMPANY RELATED TO STEPHENSON MILL APARTMENTS IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA Upon a motion by Mr. Faccenda, seconded COMMISSION ACCEPTED DONATION OF by Mr. Sharp and unanimously carried, the THE DRIESBACH PROPERTY AND BUILDING Commission accepted donation of the IN THE SOUTH BEND CENTRAL Driesbach property and building in the South DEVELOPMENT AREA Bend Central Development Area. -17- South Bend Redevelopment Commission Regular Meeting - December 17, 1993 6. NEW BUSINESS (Cont.) m. Commission approval requested for Certificate of Completion for property in the Airport Economic Development Area. (Gainey Realty & Investments) Mrs. Kolata noted that the Commission sold a small piece of land to Gainey Realty to be used in conjunction with their present location to expand their business. The project is complete and looks very nice. The staff recommends approving the Certificate of Completion. Upon a motion by Mr. Faccenda, seconded by Mr. Sharp and unanimously carried, the Commission approved the Certificate of Completion for property in the Airport Economic Development Area. (Gainey Realty & Investments) COMMISSION APPROVED CERTIFICATE OF COMPLETION FOR PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA n. Commission approval requested for Proposal for Property Management Services from Holladay Corporation for 414 W. Sample in the Sample -Ewing Development Area. Mrs. Kolata explained that the building at 414 W. Sample was previously owned by Corridor Properties. The Commission has recently acquired the 160,000 square foot building that has about five tenants. It has some major maintenance problems that need to be addressed for the tenants until we get the tenants to relocate. We would like to hire Holladay Corporation on a month -to- month basis to take care of the property management duties. Their cost for these services is $1,200 per month plus an hourly rate for any of their maintenance staff who on South Bend Redevelopment Commission Regular Meeting - December 17, 1993 6. NEW BUSINESS (Cont.) n. continued... do the repairs. We will reevaluate the $1,200 per month charge after a three month period. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Proposal for Property Management Services with Holladay Corporation. o. Commission approval requested for Certificate of Waiver for property located at 1014 N. Eddy in connection with the Rental Rehab Pro ra . Mrs. Kolata noted that under the Rental Rehab Program 10 % of a loan is forgiven each year if the conditions of the program are met. This Certificate of Waiver forgives $789.00 as of August 30, 1993. Upon a motion by Mr. Faccenda, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Certificate of Waiver in the amount of $789.00 as of August 30, 1993 for property located at 1014 N. Eddy Street. p. Commission approval requested for Subordination Agreement with Valley American Bank & Trust for property located at 313 E. Ewing. (George Athens) Mrs. Kolata explained that the Commission currently has a mortgage in the amount of $9,900 with George Athens. That loan -19- COMMISSION APPROVED THE PROPOSAL FOR PROPERTY MANAGEMENT SERVICES WITH HOLLADAY CORPORATION COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN THE AMOUNT OF $789.00 AS OF AUGUST 30, 1993 FOR PROPERTY LOCATED AT 1014 N. EDDY STREET JW South Bend Redevelopment Commission Regular Meeting - December 17, 1993 6. NEW BUSINESS (Cont.) p. continued... waspreviously suborinated to a first mortgage. As part of the refinancing to a larger mortgage, we are being asked to subordinate our mortgage again. Our loan will be in the same position it was in before the refinancing. Upon a motion by Mr. Faccenda, seconded by Mr. Sharp and unanimously carried, the Commission approved the Subordination Agreement with Valley American Bank & Trust for property located at 313 E. Ewing. (George Athens) q. Commission approval requested for Loan in connection with the West Washin on- Chapin Loan Program for property located at 616 - 618 W. Lasalle. (Theresa A. Williamson) Mrs. Kolata noted that the loan is a 20 year loan in the amount of $15,800 at 3 % interest. Payments will be $87.63 per month. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved the $15,800 loan in connection with the West Washington - Chapin Loan Program for property located at 618 W. LaSalle. (Theresa A. Williamson) -20- COMMISSION APPROVED THE SUBORDINATION AGREEMENT WITH VALLEY AMERICAN BANK & TRUST FOR PROPERTY LOCATED AT 313 E. EWING. (GEORGE ATHENS) COMMISSION APPROVED THE $15,800 LOAN IN CONNECTION WITH THE WEST WASHINGTON - CHAPIN LOAN PROGRAM FOR PROPERTY LOCATED AT 618 W. LASALLE (THERESA A. WILLIAMSON) Alf South Bend Redevelopment Commission Regular Meeting - December 17, 1993 6. NEW BUSINESS (Cont.) r. Commission approval requested for Loan in connection with the West Washin on- Chapin Loan Program for property located at 226 Laurel Street. ( Essie Mae Meadows) Mrs. Kolata noted that this is a $20,000 loan at 0% for 20 years. Payments will be $83.33 per month. The work to be done at this location will cost about $25,000, so approximately $5,000 will be a grant. Upon a motion by Mr. Piasecki, seconded by Mr. Faccenda and unanimously carried, the Commission approved the $20,000 loan in connection with the West Washington - Chapin Loan Program for property located at 226 Laurel Street. (Elsie Mae Meadows) s. Commission approval requested for Loan in connection with the West Washington-Chapin Loan Program for property located at 111 Laurel Street. (John W. Shockey) Mrs. Kolata noted that this is a $60,000 loan at 3 % interest for 30 years. Payments will be $252.96 per month. This loan includes approximately $35,000 for the refinancing of a land contract. Upon a motion by Mr. Faccenda, seconded by Mr. Piasecki and unanimously carried, the Commission approved the $60,000 loan in connection with the West Washington - Chapin Loan Program for property located at 111 Laurel Street. (John W. Shockey) -21- COMMISSION APPROVED THE $20,000 LOAN IN CONNECTION WITH THE WEST WASHINGTON - CHAPIN LOAN PROGRAM FOR PROPERTY LOCATED AT 226 LAUREL STREET. (ESSIE MAE MEADOWS) COMMISSION APPROVED THE $60,000 LOAN IN CONNECTION WITH THE WEST WASHINGTON - CHAPIN LOAN PROGRAM FOR PROPERTY LOCATED AT 111 LAUREL STREET. (JOHN W. SHOCKEY) IL South Bend Redevelopment Commission Regular Meeting - December 17, 1993 7. PROGRESS REPORTS Ms. Julie Ludwig introduced herself as a new member of The Colfax Group. Mr. Trevino inquired about a counter offer he had PROGRESS REPORTS brought in on December 16. He had expected it to be considered at the Commission meeting. Mrs. Kolata explained that the staff discussed some counter offers which were not presented to the Commission for consideration. Gabriel Okafor will meet with Mr. Trevino following the meeting. 8. NEXT COMMISSION MEETING The next meeting of the Commission will be its NEXT COMMISSION MEETING Annual Organizational Meeting scheduled for Adw January 4, 1994 at 10:00 a.m. at which time the Commission will hold a Rescheduled Regular Meeting also. 9. ADJOURNMENT There being no further business to come before ADJOURNMENT the Commission, Mr. Piasecki made a motion that the meeting be adjourned. Mr. Faccenda seconded the motion and the meeting was adjourned at 11:07 a.m. �l Paula N. Auburn, President E: Kolata, Director -22-