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HomeMy WebLinkAboutRM 06-03-94SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING June 3, 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 F. Sharp, Secretary Members Absent: Mr. Michael Donoho Mr. Philip Faccenda Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Recording Secretary Business Assistance Staff: Mr. Michael Beitzinger, Economic Dev. Specialist Legal Counsel: Ms. Jenny Pitts Manier Media: Mr. Thom Howell, U -93 Mr. Don Porter, South Bend Tribune Others: Mr. Randy Rompola, Baker & Daniels Mr. John Libertowski, Holladay Corporation Vickie Newman, Crystal Mountain Water 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday, May 20, 1994. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Minutes of the Regular Meeting of May 20, 1994. -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF MAY 20, 1994 South Bend Redevelopment Commission Regular Meeting - June 3, 1994 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted June 3, 1994, for Approval. ADMIN 1994 (2121 Federal Express James Riggs NBD Skokie Bank John Stark Coffee Time NAHRO TOTAL S.B.C.D.A. TIF - GENERAL ACCOUNT (420) Midwest Blind & Shade Co. Bartholomew's Inc. Superior Waste Systems G.W. Berkheimer Co., Inc. Indiana Michigan Power Co. Real Estate Management Corporation C and S Service Inc. Ameritech NIPSCO South Bend Water Works TOTAL SAMPLE -EWING DEVELOPMENT AREA (414) York Title & Escrow, Inc. Acrey Home Plumbing & Heating Holladay Corporation Superior Waste Systems Michiana Board Up Service, Inc. Frederick & Josephine Middleton Frederick & Josephine Middleton Indiana Michigan Power South Bend Water Works St. Joseph County Clerk Terry Jones & James Theodore Jones Thomas General Construction Douglas L. Carpenter and Associates Camiros -2- $ 46.50 61.10 533.56 57.34 23.00 80.00 $ 801.50 $ 256.32 11.99 64.40 5.00 527.82 2,777.62 38.00 48.11 133.95 270.52 $ 4,133.73 $ 3,350.00 16.05 1,370.00 158.00 145.00 1,250.00 19,260.00 1,059.17 103.74 12,350.00 4,310.00 1,325.00 1,080.00 4,118.06 South Bend Redevelopment Commission Regular Meeting - June 3, 1994 3. APPROVAL OF CLAIMS (Cont.) SAMPLE -EWING DEVELOPMENT AREA (414) continued... Red John Smith and York Title & Escrow, Inc. Teska Associates Inc. TOTAL GRAND TOTAL Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved the Claims submitted June 3, 1994. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS a. Commission annroval requested for Resolution No. 1259 approving an application for real property tax deduction for property located at Lot 4, Toll Road Industrial Park in the Airport Economic Development Area. Mr. Beitzinger explained that the petitioner is a processor of drinking, distilled and flavored water. Their project calls for the construction of a 17,000 s.f. warehouse production facility on 2.8 acres of land in the Toll Road Industrial Park. The new building will consolidate operations under one roof -3- 21,331.67 7,500.00 $ 78,726.69 $ 83,661.92 COMMISSION APPROVED CLAIMS SUBMITTED NNE 3, 1994 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - June 3, 1994 6. NEW BUSINESS (Cont.) a. continued... and provide for much needed space for future expansion. It is estimated that the building will cost between $450,000.00 and $500,000.00. It is estimated that this project will create six new jobs within the first year with an annual payroll of $110,000.00. The project will also maintain 30 existing permanent full time and 2 part time jobs with an annual payroll of $650,000.00. A review of this petition finds that the petitioner has not been granted any previous tax abatements. The property is properly zoned for the proposed use, and is not located in an area presently designated as a tax abatement impact area. However, the property is located in the Airport Economic Development Area and therefore, the petitioner needs the approval of the South Bend Redevelopment Commission. The review also finds that the petitioner meets the qualifications for a three year real property tax abatement under Section 2 -82 plus industrial development city wide. Assuming a project cost of $475,000 and a constant tax rate, the project will generate approximately $70,603 in new taxes over the three year period, without abatement. With abatement, the project will generate approximately $23,770 in new taxes over the three year period. Therefore, the cost of the abatement will be approximately $46,833. -4- South Bend Redevelopment Commission Regular Meeting - June 3, 1994 6. NEW BUSINESS (Cont.) a. continued... Mr. Beitzinger introduced Vickie Newman, co -owner of Crystal Mountain Water, to answer any questions. Ms. Newman explained that the new facility will enable them to incorporate their operations under one roof, which now is in several different locations. This will allow them to operate more efficiently, and hopefully grow more eventually. Mr. Piasecki asked Ms. Newman why there is such a price difference in different brands of bottled water in the store. Ms. Newman explained that there are different processes for purification. Some waters are strictly spring water that have been filtered. What Crystal Mountain Water does is to distill all the water, which is the purest form of water. Then for drinking water purposes, specified minerals are injected back in to give the water a fuller taste. As far as cost difference, probably the distillation is the more expensive type of processing, but the end product is more of what people are expecting to get when they buy bottled water. Mr. Piasecki asked Ms. Newman if there are any bottled waters on the market that come right out of the ground. Ms. Newman said that there probably are. She explained that Crystal Mountain Water adheres to the International Bottled Water Association's codes for processing, which are pretty stringent. They are also inspected by the National Sanitation Foundation. These things are not required, but are done -5- South Bend Redevelopment Commission Regular Meeting - June 3, 1994 6. NEW BUSINESS (Cont.) a. continued... voluntarily to try to insure a good product. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1259 approving an application for real property tax deduction for property located at Lot 4, Toll Road Industrial Park in the Airport Economic Development Area. b. Commission anmroval reauested for Resolution No. 1260, approving modifications to the lease for the College Football Hall of Fame /Century Center Project, and approving the execution of an Addendum to Lease. Mrs. Kolata asked Randy Rompola from Baker & Daniels to go through and explain the modifications that the Resolution would make. Mr. Rompola explained that the primary change to the lease is reducing the lease rental that will be paid on the Century Center portion of the financing as a result of the Redevelopment Authority selling its bonds to the underwriter. The maximum lease rental payment in the original lease was listed at $300,000.00 semi - annually through the term of the lease based upon the sale of the bonds and the interest rate on the bonds. The Resolution indicates that In COMMISSION APPROVED RESOLUTION NO. 1259 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT LOT 4, TOLL ROAD INDUSTRIAL PARK IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - June 3, 1994 6. NEW BUSINESS (Cont.) b. continued... there was a net interest cost of 6.31 % and as a result, the Authority and Commission can reduce the lease rental to $297,000.00 semi - annually. Initially, when the lease was originally approved, interest rates were much lower and the market was much more stable, but there was a factor in the lease rental payment for increased interest rates, and this has happened over the last couple of months. Bond interest rates have crept upwards so that now we are able to price the bonds at a price that is still under the maximum lease payment, but perhaps not as low as we had originally estimated last fall. The other thing that the Resolution approves, and the Lease Addendum indicates, is that now there is a Century Center financing and a Hall of Fame financing. This has primarily to do with the cost savings on the Hall of Fame financing which will be accomplished differently than the Century Center financing. To do that, we needed to change some of the definitional terms in the Lease. Exhibit A of the Resolution highlights the changes. Basically they just separate out the terms that need to be separated for two separate lease rentals and two separate bond issues. The lease rental is being pledged for the repayment by the Authority for the debt on the Century Center, and then the Hall -7- APN South Bend Redevelopment Commission Regular Meeting - June 3, 1994 6. NEW BUSINESS (Cont.) b. continued... of Fame lease rental is being applied to the Hall of Fame debt. Mr. Rompola added that there are still some blank lines in the Addendum. One relates to the pledge resolution that you normally adopt as you are preceding with the bond issue which indicates that you pledge to levy a tax in the event that you don't have sufficient revenues to make the upcoming lease payments. The Redevelopment Commission has adopted such a resolution at a prior meeting in May with respect to the Century Center portion of the bond, but have yet to adopt a resolution for the Hall of Fame, and as Baker & Daniels completes the Hall of Fame structuring, they will come back to the Commission for approval of that resolution. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1260, approving modifications to the Lease for the College Football Hall of Fame /Century Center Project, and approved the execution of an Addendum to Lease. Commission approval requested for use of Redevelopment -owned property in the West Washington-Chapin Development Area on July 3 to July 24, 1994 (Berean Seventh -Day Adventist Church). COMMISSION APPROVED RESOLUTION NO. 1260 APPROVING MODIFICATIONS TO THE LEASE FOR THE COLLEGE FOOTBALL HALL OF FAME /CENTURY CENTER PROJECT AND APPROVING THE EXECUTION OF AN ADDENDUM TO LEASE. Awk M 71 South Bend Redevelopment Commission Regular Meeting - June 3, 1994 6. NEW BUSINESS (Cont.) C. continued... Mrs. Kolata explained that the Berean Seventh -Day Adventist Church would like to use the property the Commission owns at the southwest corner of Washington and Walnut Streets for a series of outdoor church meetings. Their reasons for doing this is for providing religious instruction, and to have a ministry to the community. They are hoping that these programs will help fight crime and juvenile delinquency, as well as solidifying the home. Because the Commission owns the land, it is very similar to requests to use the Morris Civic Plaza, and the Commission needs to give approval for use of the land. The church would have to provide the Commission with proof of insurance, and would have to leave the property in the same condition as before they started. Mrs . Auburn asked if anyone had checked with the neighborhood group to see if there are any objections on their part. Mrs. Kolata stated that she had asked Dave Norris to look into it, but was not sure that he had done that yet. She said that she would like to know if they are going to put up a tent, and if they will need continuous occupancy during those days. Upon a motion by Mr. Sharp, seconded by Piasecki and unanimously carried, the Redevelopment Commission approved the request for use of Redevelopment - owned property in the West Washington- IH COMMISSION APPROVED REQUEST FOR USE OF REDEVELOPMENT -OWNED PROPERTY IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA FROM JULY 3 TO JULY 24, 1994 WITH CONDITIONS. South Bend Redevelopment Commission Regular Meeting - June 3, 1994 6. NEW BUSINESS (Cont.) C. continued... Chapin Development Area from July 3 to July 24, 1994 contingent upon finding out if they are putting up a tent, proof of insurance and approval of the neighborhood (Berean Seventh -Day Adventist Church). d. Staff report on acquisition of property in the Sample - Ewing Development Area. Mrs. Kolata explained that there were two counter -offers to be considered. The first is for a single family residence at 130 E. Ohio Street. The owners are Charles and Esther Marsh. Our offer was $12,700.00, and they have submitted a counter -offer for $14,500.00. The second counter -offer is for 233 E. Paris, owned by Isaiah and Thelma Cathey. The building is a single family residence as well as a barbershop. Our original purchase offer was for $4,800.00, and the counter -offer is in the amount of $7,000.00. Staff recommends that the Commission accept both of these counter-offers. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Redevelopment Commission accepted the counter -offer for 130 E. Ohio Street from Charles and Esther Marsh for $14,500.00. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Redevelopment Commission -10- COMMISSION ACCEPTED THE COUNTER- OFFER FOR 130 E. OHIO STREET FROM CHARLES AND ESTHER MARSH FOR $14,500.00. COMMISSION ACCEPTED THE COUNTER- OFFER FOR 233 E. PARIS STREET FROM ISAIAH AND THELMA CATHEY FOR $7,000.00. South Bend Redevelopment Commission Regular Meeting - June 3, 1994 6. NEW BUSINESS (Cont.) d. continued... accepted the counter -offer for 233 E. Paris Street from Isaiah and Thelma Cathey for $7,000.00. e. Commission approval requested for use of the Morris Civic Plaza by La Casa De Amistad on Saturday, Au sum, 1994 from 10:00 a.m. to 7:00 p.m.. Mrs. Kolata explained that La Casa De Amistad will be doing a fund raiser called Fiesta Michiana '94. It will be a Latin- American festival. The Hispanic festival will feature food, arts and crafts, educational and information exhibits, and live entertainment that represent many Latin American countries. Staff recommends approval subject to receiving proof of insurance. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved the request for use of the Morris Civic Plaza by La Casa De Amistad on Saturday, August 20, 1994, from 10:00 a.m. to 7:00 p.m. Commission approval requested for use of the Morris Civic Plaza by Center C4 Associates on Friday, June 17, 1994, from 7:00 a. m. to 11: 00 a. m.. Mrs. Kolata explained that this request is for Center City Associates' Annual Recognition Breakfast. They have agreed to provide insurance. Staff -11- COMMISSION APPROVED REQUEST FOR USE OF THE MORRIS CIVIC PLAZA BY LA CASA DE AMISTAD ON SATURDAY, AUGUST 20, 1994 FROM 10:00 A.M. TO 7:00 P.M. South Bend Redevelopment Commission Regular Meeting - June 3, 1994 6. NEW BUSINESS (Cont.) f. continued... recommends that this request be approved. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Redevelopment Commission approved the request for use of the Morris Civic Plaza by Center City Associates on Friday, June 17, 1994, from 7:00 a. m. to 11:00 a. m. g. Commission approval requested for use of the Morris Civic Plaza. by Kristi Moorehead and Jim Fox on Saturday. August . 1994 from 7:00 a.m. to 5:00 P-- m. Mrs. Kolata explained that this request is for a wedding on August 13, 1994. They have requested the use of the Plaza for the entire day, although the wedding will not be until 4:00 p.m., they want the time to set up and be prepared. This request would also be subject to proof of insurance. Mr. Piasecki asked if there was a big set of rules for the use of the Morris Civic Plaza. Mrs. Kolata answered that the only restriction is that each request come and be approved by the Redevelopment Commission and show proof of insurance and clean up after themselves. -12- COMMISSION APPROVED THE REQUEST FOR USE OF THE MORRIS CIVIC PLAZA BY CENTER CITY ASSOCIATES ON FRIDAY, NNE 17, 1994, FROM 7:00 A.M. TO 11:00 A.M. South Bend Redevelopment Commission Regular Meeting - June 3, 1994 6. NEW BUSINESS (Cont.) g. continued... Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Redevelopment Commission approved the request for use of the Morris Civic Plaza by Kristi Moorehead and Jim Fox on Saturday, August 13, 1994 from 7:00 a.m. to 5:00 p.m. h. Commission approval requested for plans for Blackthorn Golf Course Wetlands Plantings. This item was postponed, and no action was taken. Adft so 7. PROGRESS REPORTS Mrs. Kolata announced that the Indiana Association for Community Economic Development has named West Washington Place as Community Development Project of the Year. The $4.7 million project by South Bend Heritage Foundation included construction of 65 units of affordable housing in the 1200 and 1300 blocks of West Washington Street. We want to congratulate South Bend Heritage on the project and on the award. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for June 17, 1994 at 10:00 a.m. -13- COMMISSION APPROVED THE REQUEST FOR USE OF THE MORRIS CIVIC PLAZA BY KRISTI MOOREHEAD AND JIM FOX ON SATURDAY, AUGUST 13, 1994 FROM 7:00 A.M. TO 5:00 P.M. ITEM 6.H. WAS POSTPONED NEXT COMMISSION MEETING South Bend Redevelopment Commission Regular Meeting - June 3, 1994 9. ADJOURNMENT There being no further business to come before ADJOURNMENT the Redevelopment Commission, Mr. Piasecki made a motion that the meeting be adjourned. Mr. Sharp seconded the motion and the meeting was adjourned at 10:25 a.m. Paula N. Auburn, President Ann E. Kolata, Director -14-