Loading...
HomeMy WebLinkAboutRM 09-16-94SOUTH BEND REDEVELOPMENT COMNIISSION REGULAR MEETING September 16, 1994 10:00 a.m. Presiding: Paula N. Auburn President 1. 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. Philip Faccenda Members Absent: Mr. Theo F. Sharp, Secretary Mr. Michael Donoho Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Recording Secretary Ms. Cleone Hickey, Economic Dev. Specialist Mr. Tom Eddington, Economic Dev. Specialist Mr. James Riggs, Economic Dev. Specialist Media: Mr. Thom Howell, U -93 Others: Mr. Frank Perri, Holladay Corporation Ms. Julie Ludwig, Coldwell Banker Anchor Mr. Tom Panzica, The Panzica Group Ms. Chebet Chemjor, IUSB Student 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday, September 2, 1994. 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 2, 1994 Regular Meeting of Friday, September 2, 1994. -1- 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted September 16, 1994, for approval. ADMIN 1994 (212) National Council for Urban Economic Development $81.50 Skill Path $534.00 Aidop Transcripts Lts $91.00 United Parcel Service $16.00 York Title & Escrow Inc. $150.00 SAMPLE- EWING DEVELOPMENT AREA (414) Teska & Associates Inc. $10,422.41 South Bend Water Works $88.44 Ralph D. Lauver, MAI $3,250.00 Anna Harris $5,250.00 Housing Development Corp. $150.00 Mario Islas & Theresa Islas $1,200.00 Clerk - St. Joseph Circuit Court $1,800.00 South Bend Electric Co. $150.00 South Bend Water Works $220.86 Indiana Michigan Power Company $915.59 Linda Bradbury $6,100.00 Harold & Ronald Teeter & York Title & Escrow $4,650.00 Harold & Ronald Teeter $525.00 Lyons Siding & Roofing Div. Inc. $3,587.00 Chizum Plumbing Inc. $194.85 Delta Consulting Services Inc. $3,281.50 Tri- County News $253.40 Appraisal Group Inc. $550.00 Holladay Property Service Inc. $1,230.00 Jerome E. Michaels MAI $2,000.00 Superior Waste Systems $93.20 Pete M. Mattheos $196,653.39 St. Joseph County Treasurer $5,814.31 Pete M. Mattheos & Bank One $87,532.30 McFadden & McFadden Attorney at Law $200.00 -2- South Bend Redevelopment Commission Regular Meeting - September 16, 1994 3. APPROVAL OF CLAIMS (Cont.) S.B.C.D.A. T.I.F. GENERAL ACCOUNT (420) Rick Walls HRP Construction The Robert Henry Corporation Ken Herceg & Associates Inc. Superior Waste Systems Lawson Fisher Associates P.C. Stanz Foodservice Inc. Feather Dusters Inc. Real Estate Management Corporation Indiana Michigan Power Co. HALL OF FAME BOND (437) Norwest Bank NA Trustee Upon a motion by Mr. Donoho, seconded by Mr Piasecki and unanimously carried, the Commission approved the Claims submitted September 16, 1994. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS a. Commission approval requested for Addendum to Professional Service Agreement with Camiros, Ltd., dated February 24, 1994 related to the Sample - Ewing Development Area. Mrs. Kolata explained that Camiros, Ltd. is working with the Rum Village Neighbor- hood to develop a neighborhood plan. This Addendum adds $2,500 to their contract for which they will identify a qualified -3- $2,476.64 $116,900.00 $654.00 $175.89 $58.00 $3,445.50 $34.84 $45.00 $1,125.70 $536.92 $1,214,194.34 COMMISSION APPROVED THE CLAIMS SUBMITTED SEPTEMBER 16, 1994 THERE WERE NO COMMUNICATIONS Ln South Bend Redevelopment Commission Regular Meeting - September 16, 1994 5. OLD BUSINESS (Cont.) a. continued... individual to work as a community organizer. The contract for development of a neighborhood plan for the Southeast Neighborhood included this service and that is working well there. The Rum Village Neighborhood would like Camiros to identify a person to do community organizing for them. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Addendum to Professional Service Agreement with Camiros, Ltd. dated February 24, 1994 related to the Sample -Ewing Development Area. 6. NEW BUSINESS a. Staff report on disposition of property in the Sample -Ewing Development Area. There was no report. b. Staff report on acquisition of property in the Sample -Ewing Development Area. There was no report. C. Staff report on disposition of property in the South Bend Central Development Area. Mrs. Kolata noted that the staff has received two proposals for Parcel C9 -1 and C9 -2 in the South Bend Central Development Area. The property is located along Western -4- COMMISSION APPROVED THE ADDENDUM TO PROFESSIONAL SERVICE AGREEMENT WITH CAMIROS, LTD. DATED FEBRUARY 24, 1994 RELATED TO THE SAMPLE -EWING DEVELOPMENT AREA THERE WAS NO REPORT THERE WAS NO REPORT C South Bend Redevelopment Commission Regular Meeting - September 16, 1994 6. NEW BUSINESS (Cont.) C. continued... Avenue between Michigan and Main streets. The site is approximately 63,000 square feet. Western Avenue Partnership has proposed to purchase the site for $240,000 to construct a build -to -suit complex for a specific anchor tenant. The development will take place in two phases, with the phase one building occupying the corner of Michigan and Western using the west parcel as presently improved for loading and parking. The phase two structure will occupy the corner of Main and Western. Construction of phase one would begin in early 1995 with phase two to be constructed within 60 months of phase one. The completed development will meet or exceed redevelopment design guidelines established for the site (2 or more stories containing over 40,000 square feet of space, a hard edge at both comers and classic architectural design of permanent materials). The project is not speculative. The tenant's identity has been privately disclosed to the staff, but is not being made public at this time. Tom Panzica is the broker -agent for the partnership. He has been in contact with redevelopment staff for about ten months as he has worked with the prospective tenant, making two written requests that redevelopment extend a "first right of refusal" on the site. His letter of proposal noted that this was verbally acknowledged -5- South Bend Redevelopment Commission Regular Meeting - September 16, 1994 6. NEW BUSINESS (Cont.) C. continued... as an informal working agreement. Panzica's preliminary proposal on the site has now been selected by the tenant for final consideration and they are now completing construction plans and financing plans to make a comprehensive proposal to the user. The user's proposal assessment and approval process takes approximately seven months. Mrs. Kolata noted that the offer is made subject to the following conditions: 1) execution of a lease with the tenant or tenants for whom the site is proposed; 2) procurement of acceptable financing; 3) furnishing of the survey and phase one environmental report by the seller, certifying that the property is free of contamination; 4) issuance of a building permit for the proposed improvements; and 5) certification by the seller that the site is free of buried obstructions, rubble, debris, or abandoned foundations or information establishing the known location and extent of such foundations, rubble, or debris to the satisfaction of the developer; 6) this offer to remain open and in effect for a period of 215 days from the month and day written below as necessary for the prospective tenant to complete the proposal procurement process; 7) payment terms will be $160,000 cash at closing less refundable performance guarantee with the balance of $80,000 to be paid in four equal, annual installments of $8,000 with the balance of $48,000 to be a balloon payment due 60 months from the date of closing; 8) Property taxes through M South Bend Redevelopment Commission Regular Meeting - September 16, 1994 6. NEW BUSINESS (Cont.) C. continued... date of closing to be paid in full by the seller. Mrs. Kolata noted that the proposal includes a check in the amount of $4,800 as a performance guarantee. (A performance guarantee of 10 % of the purchase price is required.) Mrs. Kolata noted that the second proposal is from Western and Michigan Partners, affiliated with the Holladay Corporation. The proposal is tendered contingent upon the execution of a minimum of two lease agreements. If these lease agreements are not executed on or before May 1, 1995, Western and Michigan Partners retains the right to withdraw its offer and receive a return of its performance guarantee. The partnership has submitted a bid of $252,000 for the property. The proposal includes a check of $25,231 as a performance guarantee. The proposed new office facility will be three to four stories, containing 37,000 to 49,000 square feet of space. The proposal also includes a clock tower. Mr. Perri noted that Holladay has been working with their prospect for quite a while and feel they are close to an agreement. They need to secure control of the site in order to proceed. He asked that the Commission rule swiftly and favorably on their proposal. Ms. Auburn asked both developers if they felt confident they were close to executing a -7- South Bend Redevelopment Commission Regular Meeting - September 16, 1994 6. NEW BUSINESS (Cont.) C. continued... letter of intent from the prospective tenants? Mr. Panzica responded that he was informed shortly before the meeting that one of the tenants he is working with might be the same tenant that Holladay Corporation is working with. Had they know that this was occurring, they would have moved more swiftly to make this offer to the City. The prospective tenant is currently reviewing their procurement policy to see if their guidelines were properly followed or if they are improperly entertaining two proposals. That may impact the final outcome in this situation. Mr. Panzica indicated that they feel very confident of their proposal and feel it could win out over the others the tenant is considering. Mr. Perri expressed the same surprise and bewilderment regarding the one client, but felt very close to closing on the deal with the other two prospects. Ms. Auburn acknowledged receipt of the two bids and suggested referring them to the staff for review. Mrs. Kolata noted that this was not a formal bid process. The land was put up for bid some time ago. We have had various inquiries regarding it since that time. Both proposals came in at this time because the staff was aware that both parties were working extensively with a client for the same piece of property and asked them each to come forward with a formal proposal. Western Avenue Partnership will need to In South Bend Redevelopment Commission Regular Meeting - September 16, 1994 6. NEW BUSINESS (Cont.) C. continued... make a performance guarantee of 10% of the proposed price, but that can be done after this meeting. This amount is not a deposit on the purchase price and will not be subtracted from the price at closing. It will be retained until the project is completed and returned after the project is completed as described. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission accepted the proposals for Parcels C9 -1 and C9 -2 and referred them to staff for review and recommendation. d. Commission approval requested for Proposal from EIS Environmental Engineers for professional services in the South Bend Central Development Area. (Design Packaging) Mrs. Kolata noted that the Commission has extended a purchase offer for the Design Packaging site. When the environmental review was done on the site, there was snow on the ground. The portion of the review that includes observing the ground needs to be done yet. EIS proposes to perform the additional review for a cost not to exceed $1900. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Proposal from EIS Environmental Engineers for professional services in the South Bend Central Development Area. (Design Packaging) 6. NEW BUSINESS (Cont.) -9- COMMISSION ACCEPTED THE PROPOSALS FOR PARCELS C9 -1 AND C9 -2 AND REFERRED THEM TO STAFF FOR REVIEW AND RECOMMENDATION COMMISSION APPROVED THE PROPOSAL FROM EIS ENVIRONMENTAL ENGINEERS FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (DESIGN PACKAGING) South Bend Redevelopment Commission Regular Meeting - September 16, 1994 e. Commission approval requested for Proposal from Leedy /Cripe Architects for professional services in the South Bend Central Development Area. ( Palais Royale) Mrs. Kolata explained that we have had an expression of interest in leasing retail space in the Palais Royale. Leedy /Cripe Architects is the local company working with the main architects for the Morris Performing Arts Center. They propose to design tenant improvements for this client for a cost not to exceed $6,000, with reimbursable costs not to exceed $350. The staff recommends accepting the proposal. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, to the Commission approved the Proposal from Leedy /Cripe Architects for professional services in the South Bend Central Development Area. ( Palais Royale) f. Commission approval requested for Certificate of Completion for Toll Road Industrial Partnership in the Airport Economic Development Area. Mrs. Kolata noted that Toll Road Industrial Partnership has completed their project as promised and Tech Data is moved into the building. Upon execution of the Certificate of Completion, the performance guarantee can be returned. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Certificate of 6. NEW BUSINESS (Cont.) -10- COMMISSION APPROVED THE PROPOSAL FROM LEEDY /GRIPE ARCHITECTS FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (PALAIS ROYALE) COMMISSION APPROVED THE CERTIFICATE OF COMPLETION FOR TOLL ROAD INDUSTRIAL PARTNERSHIP IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - September 16, 1994 f. continued... Completion for Toll Road Industrial Partnership in the Airport Economic Development Area. g. Staff report on disposition of property in the Airport Economic Development Area. Mrs. Kolata explained that now that the Tech Data building is complete, the Holladay Corporation has submitted a purchase offer to exercise their option for the remaining five (plus) acres of land and to increase the size of the building from its current 100,000 square feet to 225,000 square feet. The entire building will then be 250 x 900 foot building with 50 x 50 column spacing allowing a great deal of flexibility. Rough -ins for water and sanitary distribution will be placed under the slab. It will contain 20 truck docks and 1 grade level overhead, as well as approximately 3,000 of finished office space. The expansion space will contain a 50 x 200 foot masonry enclosed area which will serve as a configuration of computer components. The building will be 100% sprinkled and will have an 8 foot masonry block wainscot around the entire perimeter. Mrs. Kolata noted that the proposal from Holladay Corporation offers $92,480 ($18,000 per acre) for the property, not $20,000 per acre as was agreed to in the option. The proposal contains a check for $9,248 as a performance guarantee. Mrs. Kolata recommended accepting the offer at the previously agreed to amount of $20,000 per acre ($102,756), allowing the 6i! South Bend Redevelopment Commission Regular Meeting - September 16, 1994 6. NEW BUSINESS (Cont.) g. continued... $9,248 to be the performance guarantee for the higher amount. Mr. Perri noted that the land purchased six months ago and developed for Tech Data was purchased at the price of $18,000 per acre. The reason $20,000 per acre was set as the price for the option was because the option was good for five years and it was assumed that the land values would increase through that period. Since Holladay is ready to exercise that option within six months and the land values have not risen yet, Mr. Perri thought that $18,000 per acre was a fair price. Other recent land sales in the area have been at $18,000 per acre. Mrs. Kolata responded that the option was part of the signed Contract for Sale of Land for the original property and could not be renegotiated. The Commission also took some risk in agreeing to $20,000 per acre because land values could far exceed that price in five years. Mr. Donoho noted that the land in question has increased in value due to the improvements put on the Holladay Corporation's first site. Mr. Perri responded that, in fact, the cost of developing that parcel will be higher because of the terrain. Other parcels near this site have sold for under $18,000 per acre because of those higher expected development costs related to the terrain. -12- South Bend Redevelopment Commission Regular Meeting - September 16, 1994 6. NEW BUSINESS (Cont.) g. continued... Ms. Auburn noted that an agreement exists to sell that site to Holladay Corporation for $20,000 per acre. Mrs. Kolata noted that the offer includes the stipulation that if the lease execution does not take place on or before October 30, 1994, Holladay Corporation retains the right to withdraw the offer and have their performance guarantee returned. Ms. Manier noted that if Holladay Corporation wishes to exercise its option to purchase the additional site at the $20,000 price agreed upon in the contract, the Commission does not have to approve that at a public meeting. Holladay Corporation simply needs to notify the Commission and submit a site plan and the performance guarantee. 7. PROGRESS REPORTS Mrs. Kolata reported that La -Z -Boy has finished PROGRESS REPORTS their expansion and remodelling and the building is a nice addition to the corner of LaSalle & Main. 8. NEXT COMNIISSION MEETING The next Regular Meeting of the Redevelopment NEXT COMMISSION MEETING Commission is scheduled for October 7, 1994 at 10:00 a.m. -13- A South Bend Redevelopment Commission Regular Meeting - September 16, 1994 9. ADJOURDiMEENT There being no further business to come before the Redevelopment Commission, Mr. Donoho made a motion that the meeting be adjourned. Mr. Piasecki seconded the motion and the meet' ��,,was��JJadj'o�urn)ed at 10:53 a.m. Paula N. Auburn, President -14- ADJOURNMENT Ann E- Kolata, Director