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HomeMy WebLinkAboutRM 05-20-94SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING May 20, 1994 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 R Sharp, Secretary Members Absent: Mr. Michael Donoho Mr. Philip Faccenda Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Recording Secretary Mr. James Riggs, Economic Dev. Specialist Business Assistance Staff: Mr. Michael Beitzinger, Economic Dev. Specialist Media: Mr. Thom Howell, U -93 Mr. Don Porter, South Bend Tribune Others: Ms. Mary Marshall, Center City Associates Ms. Fran Fortuna, Harbor Metal Treating Mr. Gregory Monticciolo, Conway Central Express Mr. Stan Blenke, Schafer Gear Mr. Bipin Doshi, Schafer Gear Mr. Frank Perri, Holladay Corporation Mr. John Libertowski, Holladay Corporation Mr. Rich Newman, Crystal Mountain Water Mr. Joe Piscione, Midwest Embroidery 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday. May 6. 1994. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved the Minutes of the Regular Meeting of May 6, 1994. -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF MAY 6, 1994 South Bend Redevelopment Commission Regular Meeting - May 20, 1994 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted May 20, 1994, for Approval. ADMIN 1994 (212 St. Joseph County Recorder $ 53.00 Larry Magliozzi 120.00 Petty Cash 49.90 Billie's Lunch -Carry Out 206.25 Center City Associates 326.52 Baker & Daniels 763.91 Cleo Hickey 6.29 $ 1,525.87 SAMPLE -EWING DEVELOPMENT AREA (414) St. Joseph County Treasurer $ 2,418.70 Clarice Blue 207.34 Carey & Jennie Payton 32, 821.12 Clara Kopinski 7978.10 MINN Charles and Esther Marsh 1,226.95 Eugene Merritt 5,100.00 Eugene Merritt and Blackwood Apartments 1,200.00 Frederick and Josephine Middleton 18,428.95 Garrett and Nannie Mullens 5,703.76 Joe Fennessee 1)792.94 Manuel & Lucille Jennings 12,923.97 Manuel & Lucille Jennings and Century 21 11,495.50 Nelson Smith 2,369.57 Red John Smith 2,697.36 Woodrow Bradford 13,491.24 The Troyer Group 2X7.00 Housing Development Corporation 450.00 W.A. Bailey Trucking 800.00 Anthony Peterson 1,300.00 Anthony Peterson 5,100.00 McIntyre & Jones, Inc. 20, 675.00 1V ichiana Board Up Services, Inc. 145.00 Frederick and Josephine Middleton 19,260.00 Frederick and Josephine Middleton 1,250.00 Ken Herceg & Associates 1.440.00 $ 175,142.50 -2- South Bend Redevelopment Commission Regular Meeting - May 20, 1994 3. APPROVAL OF CLAIMS (Cont.) S. B. C. D. A. T.I.F. GENERAL ACCOUNT (420) Ampco Parking Gates Chevrolet Corporation TOTAL Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved the Claims submitted May 20, 1994. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS Mrs. Kolata asked permission to add items 6. p. and 6. q. to the agenda. There were no objections and the items were added to the agenda. a. Staff reogA on Disposition of Lot 15 in the Toll Road Industrial Park. (Midwest Embroidery) Mr. Riggs gave the staff report on the proposal from Midwest Embroidery. On May 11, 1994 the Department of Redevelopment received a proposal to purchase Lot 15 of the Toll Road Industrial Park from Midwest Embroidery Developers Limited Partnership. The proposal is to develop a 58,000 sq. ft. -3- $ 13,709.94 900.00 $ 14, 609.94 $ 191.278.31 COMMISSION APPROVED CLAIMS SUBMITTED MAY 20, 1994 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) a. Continued... facility to be leased to Midwest Embroidery, Inc. of South Bend. The proposed purchase price is $17,000 per acre, or approximately $238,000 for the entire ±14 acre parcel. Midwest Embroidery is a manufacturer and supplier of high quality embroidered and screen printed garments. Currently the company is located at 3600 McGill in South Bend (Airport Industrial Park -Phase IV). The company is leasing two spaces for its current operation, the main facility on McGill and a second warehousing facility, also in South Bend. The company was founded in South Bend in 1984. Ten years later, the company has grown substantially, with a 3000% increase in staff. The company currently employees 92 people. The proposed project will add an additional 15 jobs. Lot 15 is approximately 14 acres in size. The site, currently without access to utilities, will be served late this summer with the construction of William Richardson Court (expected start of construction is late May.) The proposed purchase price is $238,000 for the entire ±14 acre parcel. The price per acre as proposed is $17,000. Recent sales in the Toll Road Industrial Park have been at a price of approximately $18,000 per acre. The staff recommends accepting this proposal as submitted at -4- South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) a. Continued $17,000 per acre because the standard real estate industry practice is to discount the per acre price when land is purchased in large lots. The staff recommendation is subject to the following: 1. Review of final site, building, and landscaping plans for compliance with Toll Road Industrial Park covenants and the Design Review Guidelines drafted for the Airport Economic Development Area. 2. Receipt of the required faithful performance guaranty equal to 10% of the proposed purchase price. Mr. Piscione noted that Midwest Embroidery would like to consolidate all of their operation under one roof. They have doubled their employment since they moved into the facility they are presently using. They recently acquired four major licenses, so they expect to continue growing. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission accepted the proposal from Midwest Embroidery for Disposition Lot 15 in the Toll Road Industrial Park. -5- COMMISSION ACCEPTED THE PROPOSAL FROM MIDWEST EMBROIDERY FOR DISPOSITION LOT 15 IN THE TOLL ROAD INDUSTRIAL PARK South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS b. Commission authorization requested to sign Thx Abatement Petition on behalf of Midwest Embroidery. Mrs. Kolata explained that Midwest Embroidery would like to apply for tax abatement on the project. The Redevelopment Authority still owns the property and leases it to the Commission. Therefore the Commission must sign the petition on behalf of Midwest Embroidery. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission authorized the staff to sign the Tax Abatement Petition on behalf of Midwest Embroidery. C. Commission approval requested for Resolution No. 1251 =roving_an apvlication for real property tax deduction for property located at Toll Road Industrial Park. Lot 15. in the Aimort Economic Development Area. (Midwest Embroidery Developers Limited Partnership) Mr. Beitzinger gave the staff report on the project. Midwest Embroidery is a manufacturer and supplier of high quality embroidered and screen printed garments to the licensed and premium industry. Their project calls for the construction of a 58,000 sq. ft. warehouse /production facility on 14 acres of land in the Thll Road Industrial Park. The new building will consolidate operations under one roof and provide for much needed space for future expansion. It is estimated that the building cost will be $1,376,000. Tel COMMISSION AUTHORIZED THE STAFF TO SIGN THE TAX ABATEMENT PETITION ON BEHALF OF MIDWEST EMBROIDERY South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) C. Continued... It is estimated that the project will create fifteen new jobs within the first year, with an annual payroll of $242,500 and twenty - one new jobs within two years with an annual payroll of $310,000. The project will also maintain ninety -two existing permanent full time and part time jobs representing an annual payroll of $1,590,584. Midwest Embroidery was granted a personal property tax abatement on March 14, 1994. The property is properly zoned for the proposed use. The property is not located in an area presently designated as a Tax Abatement Impact Area. The property is located in the Airport Economic Development Area, which is a Tax Incremental Financing Allocation Area. The project meets the qualifications for a ten year real property tax abatement under the Tax Abatement Ordinance. A review of the cost of this tax abatement shows that, without abatement, the project would generate approximately $681,753 in new taxes over the ten year period. With abatement, the project will generate approximately $344,285. Therefore, the cost of the abatement over the ten year period will be approximately $337,468. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1251 approving an application for real property -7- COMMISSION APPROVED RESOLUTION NO. 1251 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT TOLL ROAD INDUSTRIAL PARK, LOT 15, IN THE South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) C. Continued... tax deduction for property located at TO AIRPORT ECONOMIC DEVELOPMENT AREA. Road Industrial Park, Lot 15, in the (MIDWEST EMBROIDERY DEVELOPERS Airport Economic Development Area. LIMITED PARTNERSHIP) (Midwest Embroidery Developers Limited Partnership) d. Commission aDDroval reauested for Resolution No. 1252 approving an appli cation for personal pro ppM tax deduction for property located at 802 S. Fellows Street in the South Bend Central Development Area. (Harbor Metal Treating of Indiana, Inc.) Mr. Beitzinger read the staff report on the Admk project. Harbor Metal is in the business of metal treating by hardening, tempering and annealing customers tools, dies, and metal products. Their project calls for the construction of a 3,850 sq. ft. addition to their building on South Fellows Street. The building addition will then house two furnaces and other equipment which willbe moved form other areas of the building to streamline production. The total estimated cost of the building addition is $120,000 and the total estimated cost of the new equipment is $670,000. It is estimated that this project will create three permanent new jobs within the first year representing an annual payroll of $60,000. The project will also maintain twenty -six full time and no part time jobs representing an annual payroll of $530,000. In South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) d. Continued... Harbor Metal has been granted several previous real and personal property tax abatements and is in compliance with the reporting requirements for those abatements. The property is properly zoned for the proposed use. The property is located in an area presently designated as a Tax Abatement Impact Area by the South Bend Common Council. The property is also located in the South Bend Central Development Area which is a Tax Incremental Financing Allocation Area. The project meets the qualifications for a three year real property tax abatement and a five year personal property tax abatement under the Tax Abatement Ordinance. A review of the cost of the personal property tax abatement shows that, without abatement, the new machinery will generate approximately $64,528 in new taxes over the five year period. With abatement the equipment will generate approximately $11,442. Therefore, the cost of the personal property tax abatement will be approximately $53,086 over the five year period. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1252 approving an application for personal property tax deduction for property located at 802 S. Fellows Street in the South Bend Central Development Area. (Harbor Metal Treating of Indiana, Inc.) In COMMISSION APPROVED RESOLUTION NO. 1252 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 802 S. FELLOWS STREET IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (HARBOR METAL TREATING OF INDIANA, INC.) ON- South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) e. Commission approval requested for Resolution No. 1253 =roving an apglication for real property tax deduction for proper located at 802 S. Fellows Street in the South Bend Central Development Area. (Harbor Metal Treating of Indiana, Inc.) Mr. Beitzinger noted that a review of the cost of the real property tax abatement shows that, without abatement, the project will generate approximately $17,872 in new taxes over the three year period. With abatement, the project will generate approximately $6,017. Therefore, the cost of the real property tax abatement will be approximately $11,855 over the three year period. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1253 approving an application for real property tax deduction for property located at 802 S. Fellows Street in the South Bend Central Development Area. (Harbor Metal Treating of Indiana, Inc.) f. Commission approval requested for Resolution No. 1254 approving an application for real property tax deduction for property located at 1530 S. Olive Street in the SamDle -Ewine Development Area. (Con -Way Central Express) Mr. Beitzinger read the staff report on the project. Con -Way Central Express is a next day and second day LTL freight carrier servicing the central and -10- COMMISSION APPROVED RESOLUTION NO. 1253 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 802 S. FELLOWS STREET IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (HARBOR METAL TREATING OF INDIANA, INC.) South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) f. Continued... northeastern United States, as well as Ontario Canada. The South Bend facility acts as a distribution point for the City of South Bend and surrounding communities. Their project calls for the construction of a 21,120 sq. ft. addition to their existing terminal. The new addition will more than double their present capacity, adding 64 docks to the existing 40 docks. They will also be constructing a 2,400 sq. ft. maintenance building, with another two docks on the rear portion of their existing parking lot. Additional vacant space in the rear of their property will be paved to expand the parking capacity. The company will also be purchasing nearly $1.3 million in new equipment which includes 15 new fork lifts, 20 new tractors, and 10 new trailers. The estimated cost of the building addition and maintenance building is $1.2 million. It is estimated that this project will create fifteen new permanent jobs within the first year representing an annual payroll of $475,000. The project will also maintain sixty full time and ten part time jobs representing an annual payroll of $1.8 million. Con -Way Central Express has not been granted any previous tax abatements. The property is properly zoned for the -11- South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) f. Continued... proposed use. The property is not located in an area presently designated as a Tax Abatement Impact Area, but is located in the Sample -Ewing Development Area, which is a Tax Incremental Financing Allocation Area. The project meets the qualifications for a ten year real property tax abatement and for a five year personal property tax abatement under the Tax Abatement Ordinance. A review of the cost of the real property tax abatement shows that without abatement the project would generate approximately $595,728 in new taxes over the ten year period. With abatement the project will generate approximately $300,843. Therefore, the cost of the real property tax abatement would be approximately $294,885. A review of the cost of the personal property tax abatement shows that without abatement the new equipment would generate approximately $124,603 in new taxes. With abatement the taxes would be approximately $22,095. Therefore, the cost of the real property tax abatement will be approximately $102,508 over the five year period. Mrs. Kolata noted that state law stipulates that personal property tax abatement can only be obtained for manufacturing equipment. The state tax board will make the ultimate decision whether this equipment qualifies as manufacturing equipment. The use qualifies under the City Council ordinance. -12- South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) f. Continued... The staff recommends approving the resolution for personal property tax abatement and forwarding the recommendation to the Council, but wants the petitioner to realize that the State Board of Tax Commissioners may still deny the abatement. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1254 approving an application for real property tax deduction for property located at 1530 S. Olive Street in the Sample -Ewing Development Area. (Con -Way Central Express) g. Commission approval requested for Resolution No. 1255 approving an apnlication for personal property tax deduction for property located at 1530 S. Olive Street in the Sample -Ewing Development Area. (Con -Way Central Express) Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1255 approving an application for real property tax deduction for property located at 1530 S. Olive Street in the Sample -Ewing Development Area. (Con -Way Central Express) -13- COMMISSION APPROVED RESOLUTION NO. 1254 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1530 S. OLIVE STREET IN THE SAMPLE -EWING DEVELOPMENT AREA. (CON -WAY CENTRAL EXPRESS) COMMISSION APPROVED RESOLUTION NO. 1255 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1530 S. OLIVE STREET IN THE SAMPLE -EWING DEVELOPMENT AREA. (CON -WAY CENTRAL EXPRESS) South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) h. Commission approval requested for Resolution No. 1256 approving an application for real property tax deduction for property located at 814 S. Main Street in the Sample -Ewing Development Area. (Schafer Gear Works, Inc.) Mr. Beitzinger read the staff report on the project. Schafer Gear Works is a manufacturer of gears and machined parts to customer specifications. Schafer plans to construct a 17,000 sq. ft. building addition to its existing facility. The addition will be built on property acquired from the City where the old Southern Hotel once stood and a portion of Schafer's present parking lot adjacent to their building. The cost of the building expansion is estimated at $80,000. The project will create fifteen new permanent jobs within the first year, representing a new annual payroll of $350,000 and will maintain fifty seven existing permanent full time and three part time jobs with an annual payroll of $1,600,000. Schafer Gear has previously been granted tax abatements in July 1988, June 1991, and July 1993. They are in compliance with the reporting requirements for those abatements. The property is properly zoned for the proposed use. The property is located in an area presently designated as a Tax Abatement Impact Area and is also located in the Sample -Ewing Development Area which is a Tax Increment Financing Allocation Area. The project meets the qualifications for a ten Awl -14- South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) h. Continued... year real property tax abatement under the Tax Abatement Ordinance. A review of the cost of the tax abatement shows that without abatement the project would generate approximately $397,152 in new taxes over the ten year period. With abatement, the project will generate approximately $200,562. Therefore, the cost of the abatement will be approximately $196,590. Mr. Blenke noted that the cost of the expansion amounts to about $45 per sq. ft. which will make it a first class facility. Schafer Gear has increased sales pproximately four times since 1988. Business has been very good. They expect to break ground in early July and complete the project in early November. Ms. Auburn congratulated Mr. Blenke and Mr. Doshi on the success of Schafer Gear. They have done an excellent job of turning the company around since they acquired it. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1256 approving an application for real property tax deduction for property located at 814 S. Main Street in the Sample -Ewing Development Area. -15- COMMISSION APPROVED RESOLUTION NO. 1256 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 814 S. MAIN STREET IN THE SAMPLE -EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) L Commission approval requested for Resolution No. 1257 approving an application for personal property tax deduction for property located at 3900 William Richardson Court in the Airport Economic Development Area. (Tech Data Corporation) Mr. Beitzinger read the staff report on the project. Tbch Data is a national company in the business of distributing micro computer related software and hardware products. They intend to install $3,000,000 worth of various equipment which will be utilized in their warehousing and distribution process. Tbch Data will be leasing 100,000 sq. ft. of space in a new facility located in the Toll Road Industrial Park. The lessor received a ten year tax abatement in March of this year. As noted in the lessor's petition for real property tax abatement, this project will create between thirty and fifty new permanent jobs within the first year representing an annual payroll of approximately $750,000. Tech Data has not been directly granted any previous tax abatement, however it will benefit from a ten year real property abatement granted to Toll Road Industrial Partners in March 1994. The property is properly zoned for the proposed use. The property is not located in an area presently designated as a Tax Abatement Impact Area, but is located in the Airport Economic Development Area which is a Thx Increment Financing Allocation Area. The project meets the qualifications for a -16- APN South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) i. Continued... five year personal property tax abatement under the Tax Abatement Ordinance. A review of the cost of the abatement shows that, without abatement, the new equipment would generate approximately $288,357 in new taxes. With abatement, the taxes generated will be approximately $51,131. Therefore, the cost of the abatement will be approximately $237,226 over the five year period. Mrs. Kolata noted that, although the equipment to be purchased by Tbch Data meets the guidelines for personal property tax abatement under the Common Council ordinance, the State Board of Tax Commissioners will make the final determination and may decide that this equipment is not manufacturing equipment. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1257 approving an application for personal property tax deduction for property located at 3900 William Richardson Court in the Airport Economic Development Area. (Tbch Data Corporation) -17- COMMISSION APPROVED RESOLUTION NO. 1257 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3900 WILLIAM RICHARDSON COURT IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (TECH DATA CORPORATION) South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) j. Commission approval requested for Resolution No. 1258 establishing certain funds and accounts in connection with the Lease dated as of November 1. 19935 between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority relating to o the Century Center Project and other related matters. Mrs. Kolata noted that the Hall of Fame bond issue has been broken into two parts, the Century Center portion and the Hall of Fame portion. The Redevelopment Authority took action on May 17 to authorize the Official Statement, the Trust Indenture and other documents related to the sale of the bond. Resolution No. 1258 establishes accounts for the lease payments to be made from by the Commission to the Authority. The resolution also states that if there is not enough money in that account on August 1 of any year, the Commission will levy taxes to make the payment. However, the project has been structured so that there should be no need to levy a tax. Mrs. Kolata noted that this bond will receive bond insurance and that there will be a reserve fund set up as well. Mrs. Kolata noted that the sale of the Hall of Fame bond will take place at least 15 days after the sale of the Century Center bond. The bonds have slightly different financing structures and the IRS says that if they are sold less than 15 days apart, Adpk South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) j. Continued... their interest rates are blended and that is not to the City's advantage. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1258 establishing certain funds and accounts in connection with the Lease dated as of November 1, 1993, between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority relating to the Century Center Project and other related matters. k. Staff Mort on acquisition of property in the Sample -Ewing Development Area. Mrs. Kolata noted that the staff has received one counter offer for property in the Sample -Ewing Development Area. It is from Charles and Esther Marsh for a single family dwelling located at 130 E. Ohio Street. The original purchase offer was for $12,700. The counter offer is $14,500. The staff recommends accepting the counter offer. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission accepted the counter offer from Charles and Esther Marsh in the amount of $14,500 for property located at 130 E. Ohio Street in the Sample -Ewing Development Area. -19- COMMISSION APPROVED RESOLUTION NO. 1258 ESTABLISHING CERTAIN FUNDS AND ACCOUNTS IN CONNECTION WITH THE LEASE DATED AS OF NOVEMBER 1, 1993, BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE SOUTH BEND REDEVELOPMENT AUTHORITY RELATING TO THE CENTURY CENTER PROJECT AND OTHER RELATED MATTERS COMMISSION ACCEPTED THE COUNTER OFFER FROM CHARLES AND ESTHER MARSH IN THE AMOUNT OF $14,500 FOR PROPERTY LOCATED AT 130 E. OHIO STREET IN THE SAMPLE -EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) 1. Commission approval requested for Extension of Lease with American Drug Stores. Inc. (Osco Drug Store) Mrs. Kolata noted that the Lease with American Drug Stores gives them three two -year options to extend the lease. They have exercised one option and have now requested to extend the lease an additional two years on the second option. This extension will run from September 11, 1994 through September 14, 1996. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved the Extension of Lease with American Drug Stores, Inc. (Osco Drug Store) m. Commission approval requested for Proposals for professional services in the South Bend Central Development Area. (Dreisbach property) Mrs. Kolata noted that the Dreisbach property was donated to the Commission at the end of 1993. The staff has been discussing the options of how to offer the property for sale or lease, as a whole or in parts. We need to hire two appraisers to set a value for the property. The first proposal is from McCloskey -Pitts who would complete the appraisal in 30 - 45 days for a fee of $3,500. Ralph Lauver has proposed to complete the appraisal within 30 days for a fee of $3,500. The staff recommends accepting both proposals. -20- COMMISSION APPROVED THE EXTENSION OF LEASE WITH AMERICAN DRUG STORES, INC. (OSCO DRUG STORE) South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) m. Continued... Mrs. Kolata noted that the Commission cannot sell the property for two years, but has had several parties interested in purchasing it. We would consider the possibility of leasing it in the interim. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission accepted the proposal from McCloskey -Pitts for $3,500 and the proposal from Ralph Lauver for $3,500 for appraisals services in the South Bend Central Development Area. (Dreisbach property) n. Commission approval requested for Proposal from Economics Research Associates for professional services in the South Bend Central Development Area. (Century Center) Mrs. Kolata explained that as Century Center continues to grow and as it takes over the space that was previously the museum space, we felt that there was a need for a study on the market support for use of the facility and whether now would be a good time to look again at building a hotel on the Century Center parking lot site. Economics Research Associates has proposed to perform the market study for a fee of $5,000. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission accepted the proposal from Economics Research Associates for -21- COMMISSION ACCEPTED THE PROPOSAL FROM MCCLOSKEY -PITTS FOR $3,500 AND THE PROPOSAL FROM RALPH LAUVER FOR $3,500 FOR APPRAISALS SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (DREISBACH PROPERTY) COMMISSION ACCEPTED THE PROPOSAL FROM ECONOMICS RESEARCH ASSOCIATES FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (CENTURY CENTER) South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) n. Continued... professional services in the South Bend Central Development Area. (Century Center) o. Commission aWroval requested for Proposal for Wraisal services in the South Bend Central Development Area. (Zion Hill Baptist Church) Mrs. Kolata noted that Zion Baptist Church is located at 310 W. Monroe, behind the scoreboard of Coveleski Stadium. The Commission bought the church at the time we bought the rest of the property to build the stadium, not because the building of the stadium required it, but because the congregation didn't feel it could co -exist with the stadium. We relocated that church to another location only to find that they were subleasing space to another congregation. That congregation, Zion Hill Baptist Church, has continued to lease from the Commission. They are now interested in purchasing the church. We don't know that we want to sell it, but would like to have one appraisal done so we know what the value is. McCloskey -Pitts has proposed to perform the appraisal for a fee of $3,000. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved the proposal from McCloskey -Pitts for appraisal services in the South Bend Central Development Area. (Zion Hill Baptist Church) -22- COMMISSION APPROVED THE PROPOSAL FROM MCCLOSKEY -PITTS FOR APPRAISAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (ZION HILL BAPTIST CHURCH) South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) p. Staff report on Disposition of Lot 4 in the TO Road Industrial Park Phase II. (Crystal Mountain Water) Mr. Riggs gave the staff report on the project. Crystal Mountain Water has proposed to purchase Lot 4 in the Toll Road Industrial Park Phase II. The company is presently located in Mishawaka. The company was founded in 1985 and employs approximately 20 people. They propose to construct a 17,000 sq. ft. facility to include office, manufacturing space, and bottling space for their business. The project will allow for 12 - 15 new full time positions within the next two years. They have offered $50,400 for the 2.8 acres or $18,000 per acre. They would like to complete construction by early November. We have received a faithful performance guarantee in the amount of $5,040. The staff recommends that the Commission accept the proposal subject to final site plans and landscaping plans for compliance with Toll Road Industrial Park covenants and Airport Economic Development Area design guidelines. Mr. Newman noted that Crystal Mountain has been in business for 10 years in the 17% of the bottled water market which is delivered bottles. About 18 months ago they got involved in the other 83 % of the market - the small bottles of water sold in the supermarkets. They are presently spread among three locations now and have stopped taking new orders. They need to expand and to consolidate their operation. -23- South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) p. Continued... Upon a motion by Mr. Donoho, seconded COMMISSION ACCEPTED THE PROPOSAL by Mr. Sharp and unanimously carried, the FROM CRYSTAL MOUNTAIN WATER- FOR Commission accepted the proposal from LOT 4 IN THE TOLL ROAD INDUSTRIAL Crystal Mountain Water for Lot 4 in the PARK PHASE II Toll Road Industrial Park Phase II and authorized execution of all documents as prepared by legal counsel. q. Commission authorization requested to sign tax abatement petition on behalf of Crystal Mountain Water. Mrs. Kolata explained that Crystal Mountain would like to apply for tax abatement on the project. Since the Redevelopment Authority owns the property and leases it to the Commission, the Commission must sign the tax abatement petition on behalf of Crystal Mountain. Upon a motion by Mr. Donoho, seconded COMMISSION AUTHORIZED THE STAFF TO by Mr. Sharp and unanimously carried, the SIGN THE TAX ABATEMENT PETITION ON Commission authorized the staff to sign the BEHALF OF CRYSTAL MOUNTAIN WATER tax abatement petition on behalf of Crystal Mountain Water. r. Commission approval requested for South Bend Symphony to use the Morris Civic Plaza. on June 27, 28. 29, and 30. Mrs. Kolata explained that the South Bend Symphony would like to use the Morris Civic Plaza for free concerts on the cement and brick area of the plaza. They will perform two concerts each day, one from 11:30 a.m. - 1:30 p.m. and the other from -24- 0 South Bend Redevelopment Commission Regular Meeting - May 20, 1994 6. NEW BUSINESS (Cont.) r. Continued... 5:00 p.m. - 7:00 p.m. The orchestra would distribute information about subscribing to their season. They might also operate a concession stand during the concerts also. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved the use of the Morris Civic Plaza by the South Bend Symphony on June 27, 28, 29, and 30, subject to receiving proof of insurance and indemnification. 7. PROGRESS REPORTS Mrs. Kolata reported that, in addition to closing with Schafer Gear on June 13, we also closed with Richard Allen on Parcel 23 in the Studebaker Corridor. He has already pulled a building permit and will be under way rapidly. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for June 3, 1994 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Donoho made a motion that the meeting be adjourned. Mr. Sharp seconded the motion and the meeting was a 'ourned at 11:20 a.m. Paula N. Auburn, President -25- COMMISSION APPROVED THE USE OF THE MORRIS CIVIC PLAZA BY THE SOUTH BEND SYMPHONY ON NNE 27, 28, 29, AND 30, SUBJECT TO RECEIVING PROOF OF INSURANCE AND INDEMNIFICATION PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT Ann E. Kolata, Director