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HomeMy WebLinkAboutRM 10-07-94SOUTH BEND REDEVELOPMENT CONEMSSION REGULAR MEETING October 7, 1994 1308 County -City Building 10:00 a.m. 227 W. Jefferson Boulevard Presiding: Paula N. Auburn South Bend, Indiana President 1. ROLL CALL Members Present: Ms. Paula N. Auburn, President Mr. Roman J. Piasecki, Vice - President Mr. Theo F. Sharp, Secretary Mr. Michael Donoho Members Absent: Mr. Philip Faccenda Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Recording Secretary Business Assistance Staff: Mr. Michael Beitzinger, Economic Dev. Specialist Bureau of Housing Staff: Ms. Mary Richmond Media: Mr. Thom Howell, U -93 Mr. Don Porter, South Bend Tribune Others: Mr. Rick Jones, Wells Electronics Mr. Frank Perri, Holladay Corp. Mr. Philip Panzica, Panzica Architects Mr. Tom Panzica, Panzica Development Mr. Tom Varga,Financial Associates Mr. Robert L. Roule, Metro Beverage Mr. Tom Westfall, Westfall & Davis Public Accountants Ms. Auburn noted that the Executive Session will continue immediately following adjournment of the Regular Meeting. -1- South Bend Redevelopment Commission Regular Meeting - October 7, 1994 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday, September 16, 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 16, 1994 Regular Meeting of Friday, September 16, 1994. 3. APPROVAL OF CLAIMS ADMIN 1994 (212) City Awning of South Bend $ 2,260.00 Billie's Catering Inc. $ 24.00 Federal Express $ 13.00 General Fund: Printing $ 69.16 Plastimatic Arts Corp. $ 74.50 Baker & Daniels $ 74.00 School of Public & Environmental Affairs $ 47.50 Appraisal Institute $ 28.50 City Clerk's Office $ 7.12 Makielski, Inc. $ 145.00 John March - Petty Cash $ 103.90 Tri- County News $ 52.79 South Bend Drafting Supply $ 58.00 James Riggs $ 36.52 Travelmore $ 418.00 National Development Council $ 715.50 ADT Security Systems $ 1,108.07 South Bend Tribune $ 54.79 SAMPLE -EWING DEVELOPMENT AREA (414) Michiana North American $ 1,925.75 Bill Ricker Remodeling $ 1,900.00 Slutsky -Peltz Plumbing $ 543.80 Indiana Michigan Power Co. $ 966.15 -2- South Bend Redevelopment Commission Regular Meeting - October 7, 1994 3. APPROVAL OF CLAIMS (Cont.) SAMPLE -EWING DEVELOPMENT AREA (414) Sammy Smith $ 475.00 Tri- County News $ 126.00 Thomas General Construction $ 650.00 York Title & Escrow #4 $ 350.00 John March - Petty Cash $ 253.40 Nancy J. Stokes $ 20,064.33 Jerome E. Michaels $ 1,000.00 Madison Center Inc. $ 279.00 C.R. Campbell & Son $ 71.00 South Bend Electric $ 65.00 Appraisal Group $ 275.00 Sam Smith & McFadden & McFadden $ 200.00 Douglas L. Carpenter & Associates $ 710.00 Teska & Associates Inc. $ 10,095.18 Al Kapitan $ 380.00 N.I.P.S.C.O. $ 34.82 HUMA Appraisals $ 1,000.00 South Bend Water Works $ 102.63 Warner and Sons Inc. $ 3,220.00 S.B.C.D.A. T.I.F. GENERAT_. ACCOUNT (420) Department of Public Works $ 20,000.00 Gates Chevy World $ 900.00 Economic Research Associates $ 2,500.00 N.I.P.S.C.O. $ 18.88 Real Estate Management Corp. $ 11218.99 South Bend Water Works $ 136.37 B.H. Awning & Tent Co., Inc. $ 1,140.00 Indiana Michigan Power Co. $ 201.07 Circle Lumber Inc. $ 8.97 AT &T $ 1.38 Ameritech $ 55.13 Rick Walls $ 2,368.96 -3- South Bend Redevelopment Commission Regular Meeting - October 7, 1994 3. APPROVAL OF CLAIMS (Cont.) Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved the Claims submitted September 16, 1994. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSEWSS a. Receipt of Bids for Property in the South Bend Central Development Area. Mrs. Kolata noted that the Commission put up for bid the church at 310 W. Monroe. The minimum asking price was $75,400. As of 10:00 a.m. this morning, one bid has been received. Zion Hill Baptist Church has offered $1.00 for the property. Zion Hill Baptist Church currently occupies the building. Their bid states that they have previously paid in excess of $20,000 in rent. In order to comply with the minimum building and mechanical standards of the City of South Bend they will be obligated to expend another $48,847. Since the proposed reuse set forth in the offering sheet is for a church, which is the present and proposed use, and since the congregation has for the past eight years used the building as a place of worship, they are requesting the Commission to take into consideration the rent they have paid and the improvements they will need to make. -4- COMMISSION APPROVED THE CLAIMS SUBMITTED SEPTEMBER 16, 1994 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS G South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) a. continued... Mrs. Kolata asked that the proposal be referred to staff for review and recommendation. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission referred the proposal to the staff for review. b. Commission approval requested for Resolution No. 1290 approving the application for personal property tax deduction for property located at 1701, 1801, 1818, and 1819 S. Main Street in the Sample -Ewing Development Area. (Wells Electronics) Mr. Beitzinger read the staff report on the project. Wells Electronics is a manufacturer of electronic components and accessories for the electronics industry. Their project calls for the installation of over $3,000,000 worth of new manufacturing equipment over the next two years. The new equipment is necessary to improve the manufacturing process of current products and to enable the company to produce new products. It is estimated that the project will create five new permanent full-time jobs in the first year, representing an annual payroll or $150,000 and another five new permanent full-time jobs in the second year with an additional annual payroll of $150,000. The project will also maintain one hundred and eighteen existing permanent full-time and -5- COMMISSION REFERRED TO STAFF FOR REVIEW THE PROPOSAL RECEIVED FOR PROPERTY LOCATED AT 310 W. MONROE South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) b. continued... part-time jobs with an annual payroll of $4,381,000. Wells Electronics was granted a real and a personal property tax abatement on October 11, 1984 and is in compliance with the reporting requirements for the previous abatements. 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 Sample -Ewing Development Area which is a Tax Increment Financing Allocation Area. The project qualifies for five years of personal property tax abatement under the tax abatement ordinance. A review of the cost of the abatement, with an estimated equipment cost of $3,074,000 and a constant tax rate, shows that, without abatement the project would generate approximately $296,054 in new taxes. With abatement the project will generate approximately $52,496. Therefore, the cost of the abatement over the five year period will be approximately $243,558. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1290 approving the application for personal property tax deduction for property located at 1701, 1801, 1818, and 1819 S. Main Street in the Sample -Ewing Development Area. (Wells Electronics) 0 COMMISSION APPROVED RESOLUTION NO. 1290 APPROVING THE APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1701, 1801, 1818, AND 1819 S. MAIN STREET IN THE SAMPLE -EWING DEVELOPMENT AREA. (WELLS ELECTRONICS) South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) C. Commission approval requested for Resolution No. 1291 approving an application for real property tax deduction for property located at Lot 2, Toll Road Industrial Park Phase II, Section 2 in the Airport Economic Development Area. (Toll Road Industrial Partners II, L.P.) Mr. Beitzinger read the staff report on the project. Toll Road Industrial Partners II intends to build a 125,000 square foot building for the Tech Data Corporation on Lot 2 in the Toll Road Industrial Park Phase II, Section 2. This building is an addition to the 100,000 square foot building built earlier this year for the same company. The new building will also be utilized as a national return center and for assembly operations. The total cost of this building is estimated at $3,000,000. It is estimated that this project will create forty to fifty permanent new jobs within the first five years representing an annual payroll of around $8,000,000. This is in addition to the thirty to fifty new jobs win an annual payroll of around $750,000 that were projected to be created with the initial project. Toll Road Industrial Partners II was granted a ten year real property tax abatement on March 28,1994. The property is properly zoned for the proposed use. The property is not located in an area presently designated as a Tax -7- South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) C. continued... Abatement Impact Area, but is located in the Airport Economic Development Area. The Project qualifies for ten years of real property tax abatement under the tax abatement ordinance. A review of the cost of the abatement, assuming a project cost of $3,000,000 and a constant tax rate, shows that, without abatement the project will generate approximately $1,489,320 in new taxes. With abatement, the project will generate approximately $752,107 in new taxes. Therefore, the cost of the abatement will be approximately $737,213 over the ten year period. Mr. Perri stated that Tech Data has really exceeded all expectations in deciding to make this expansion so soon after constructing their first building. They plan to be in this new addition in the spring. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1291 approving an application for real property tax deduction for property located at Lot 2, Toll Road Industrial Park Phase II, Section 2 in the Airport Economic Development Area. (Toll Road Industrial Partners II, L.P.) d. Commission approval requested for Resolution No. 1292 approving an application for real property tax COMMISSION APPROVED RESOLUTION NO. 1291 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT LOT 2, TOLL ROAD INDUSTRIAL PARK PHASE H, SECTION 2 IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (TOLL ROAD INDUSTRIAL PARTNERS H, L.P.) South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) d. continued... deduction for property located at 3707 W. Lathrop in the Airport Economic Development Area. (William J. Griffin, Jr. on behalf of Metro Beverages, Inc.) Mr. Beitzinger read the staff report on the project. Metro Beverages is primarily engaged in the distribution of beer, ale, dark beer, imports, seasonal beers and non- alcohol beer products. The proposed project includes the construction of an addition to the existing building, adding in excess of 14,000 square feet and rehabilitating the existing building which encompasses 11,000 square feet. The use of the addition will be for the expanded needs of the petitioner and is essential to accommodate the continued growth of the business. The total project cost is estimated at $550,000. It is estimated that the project will create six new permanent jobs within the first year, representing a new annual payroll of $124,592 and will maintain fifty -six existing permanent full-time and four part-time jobs with an annual payroll of $1,367,700. The property at 3707 W. Lathrop was granted a ten year real property tax abatement on July 11, 1993 for Griffin's Marine, Inc. The petitioner is in compliance with the reporting requirements for the previous tax abatement. The property is properly zoned for the proposed use. The property is not located in In South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) d. continued... an area presently designated as a Tax Abatement Impact Area, but is in the Airport Economic Development Area which is a Tax Incremental Financing Allocation Area. The project qualifies for three years of real property tax abatement under the tax abatement ordinance. A review of the cost of the abatement, assuming a project cost of $550,000 and a constant tax rate, shows that,without abatement, the taxes to be generated by the project will be approximately $81,751. With abatement the taxes will be approximately $27,523. Therefore, the cost of the abatement will be approximately $54,228 over the three year period. Mr. Roule noted that Metro Beverage has been in business since 1947. It was originally located in Michigan City. It acquired the franchise for Miller Brewing Company in 1987 and moved to South Olive Street in South Bend. It later acquired the Lathrop Street property from Griffin Marine. It has grown tremendously since 1987. Ms. Auburn declared a conflict of interest on this item and did not vote. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1292 approving an application for real property tax deduction for property located at 3707 W. Lathrop in the Airport Economic Development Area. (William J. Griffin, Jr. on behalf of Metro Beverages, Inc.) -10- COMMISSION APPROVED RESOLUTION NO. 1292 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3707 W. LATHROP IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (WILLIAM J. GRIFFIN, JR. ON BEHALF OF METRO BEVERAGES, INC.) South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) e. Staff report on disposition of property in the South Bend Central Development Area. Mrs. Kolata noted that at the last meeting the Commission heard two proposals for property located on Western Avenue between Michigan and Main Streets. Western Avenue Partnership (Panzica Development) proposed to construct a build - to -suit complex for a specific anchor tenant. Development is to take place in two phases with the phase one building to occupy the corner of Michigan and Western and the phase two to occupy the corner of Main and Western. The construction of phase one would begin in early 1995 with phase two to begin within five years. The completed development will meet or exceed the design guidelines for the site, which consisted of two or more stories containing over 40,000 square feet of space, a hard edge at both corners and classic architectural design of permanent materials. They bid $240,000 for the site. Their proposal was contingent on a number of factors: 1) execution of a lease with the tenant for whom the site is proposed; 2) procurement of financing; 3) information on survey and environmental; 4) certification by the Commission that the site is free of buried obstructions, etc. or the Commission would bear the cost of removing such obstructions; 5) the offer must remain open for a period of 215 days from the date of submittal. C -11- South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) e. continued... Western Avenue Partnership would pay $160,000 cash at closing with the balance of $80,000 to be paid over the five year period. Western and Michigan Partners (Holladay Corp.) submitted the second bid. It was made contingent on the execution of a minimum of two lease agreements. If the lease agreements were not made on or before May 1, 1995, they retained the right to withdraw their offer and receive a return of the performance guarantee. Western and Michigan Partners submitted a bid of $252,000 for the property. They proposed to construct an office building of three to four stories containing 37,000 to 49,000 of space. Mrs. Kolata noted that since the last Commission meeting, the staff has met with both developers separately to review the proposals. In the Panzica proposal, the first building will be also 30,000 square feet and the second building will be 30,000. In order to build the second building they would need to acquire additional land from a private owner for parking. The first building will be two stories, approximately 34 feet tall. The second building would be a three story building. Mrs. Kolata noted that the Holladay proposal provides for a 15,000 square foot footprint and would be three stories. It C, -12- South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) e. continued... would have some speculative office space within the building. The main portion, however, would be for a single, large tenant that they are working to attract. That is the same tenant that Panzica Development is working to attract. They are working with three potential businesses to locate in the building as well. Mrs. Kolata noted that both developers have indicated that they would seek tax abatement; both would require a phase one environmental site assessment; both would probably require vacation of alleys within the block; and both would request some public improvements on the triangular area where Michigan Street curves out to become St. Joseph Street. Ms. Auburn noted that it would be unfair to ask each developer to discuss the details of their proposals since each is involved in a competitive bid for the same tenant. Each has proposed developing the site in a different way, meeting the primary tenant's requirements. For the Commission to select one developer for the site, the choices for the prospective tenant are thereby limited. Mrs. Kolata noted that the tenant that they are working with has indicated that they need to show site control if they are the successful bidder. That is why we need to consider the bids at this time. -13- South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) e. continued... Mr. Tom Panzica brought the project architect, Phil Panzica, and the financial consultant representing a group of investors for the project, Tom Varga. He assured the Commission that if the prospective tenant selects their proposal, they do have the financing in place to do the project. Mr. Panzica also stressed that he has been working with the Redevelopment staff since November 1993 on this specific site, for this specific tenant. The prospective tenant's process has imposed this lengthy timeframe. Holladay Corporation has become interested in this site late in the process. Panzica Development thought they had the understanding with the tenant that they would only entertain one proposal for a particular site. They were very surprised to find that a second proposal for this site was from the same tenant they were working with. Mr. Panzica stated that if the situation becomes such that there is competition on the site as the proposals go to the tenant, the final product may be somewhat degraded in order to be economically competitive. Instead of the project being presented as a superior site with a quality project, the emphasis becomes "who can deliver the project at the lowest rent." The amenities become less important than if the amenities come with the site. As it stands, Panzica feels it is proposing the highest and best use of the site. cow -14- South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) e. continued... Mr. Panzica also pointed out that if the Commission leaves the decision to the tenant, it allows the outside party to determine what will happen on that site. Mr. Panzica also noted that their offer is contingent upon only one lease. It the major tenant selects their offer, the development will take place. Mr. Sharp asked Mr. Panzica if the need to acquire privately owned property violates the requirement of site control that the tenant requires. Mr. Panzica responded that he didn't feel that the highest and best use of the site, long term, includes parking. They would rather see two buildings on the site and use additional land for parking. However, phase two could occur without acquisition of the additional land. There are no parking requirements for development in the downtown and there is enough parking available on the streets nearby if it could not be acquired. Mr. Panzica pointed out the safety issues that hinder development at the southern edge of downtown. They feel that by having phase one of their project in place, phase two becomes more desirable. They have had potential tenants express interest in the phase two project if phase one is in place. Mr. Perri stated that he thought this was a terrific opportunity for the Holladay Corporation to be involved in another high IL -15- South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) e. continued... quality project in downtown South Bend. They've been kicked around a little bit over the last five years —by outmigration to suburban office space, etc. The Holladay Corporation always expected that that end of town would be developed. They've lost tenants because of the stigma of being at that end of the downtown. One large building on this site would anchor that end of town and provide safety for its tenants. Mr. Perri noted that the same tenant who is interested in this site was interested in space in One Michiana Square. Holladay was ready to make a proposal to them for that, but some of the existing tenants expanded and went into long term leases, thereby requiring Holladay to look for a different site. Mr. Perri agreed wholeheartedly with Mr. Panzica that leaving the choice on this site up to the tenant will degrade the site development. He felt that the single building Holladay is proposing is the best use of the site and would be deemed so by the tenant. He asked the Commission to consider the quality projects the Holladay Corporation has always done when making its decision. Mr. Panzica noted that Panzica Development indicated to the staff that if they were the exclusive developer for this site, they would G -16- South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) e. continued... not seek tax abatement for phase one of the project. If they are not the exclusive developer of this site, the competitive nature of the bidding will make tax abatement necessary. Phil Panzica addressed the nature of the architecture proposed and the reasoning behind it. He reminded the Commission of the high quality of Panzica's development projects, whether office or industrial. The tenant's requirements are very stringent and were not able to be met in existing structures in downtown South Bend. Panzica identified this site early on as a high profile site, suitable for this project. They would have brought an offer to the table a lot sooner had the mechanisms been resolved between the Commission, the staff and the realtors. Panzica's approach was to propose a stand alone, institutional quality building for the site. Their research indicated that this is what the client purchases in other communities and that they are willing to pay for it. Panzica wanted to bring that quality of a building to this community. They intended to propose a hard surface, precast structure with a stone finish. This would be a long life building -50 to 100 years. They felt it was important to anchor the 2nd corner with another building. The first building would be 2 stories with a 15,000 square foot footprint. The height requirements of the tenant would push this almost 36 feet high (equivalent to a 3 story -17- South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) e. continued... building). They would put another three story building on the other corner, creating sizable mass in that area. Mr. Perri stated that Holladay would reduce its contingency requirements and not require any more than the lease from the one major tenant to do the project. Ms. Auburn asked if that meant that he was unsure of the other tenant. Mr. Perri responded that it did not mean that at all. It means that the development would be successful with only the one guaranteed tenant. Ms. Auburn asked how leaving both co developers in a competitive situation for the site would cause them to compete for the project with price more of an issue, since they are already competing with other unknown developers using other sites. Mr. Panzica responded that he feels that cost is not the only issue with this tenant. The site is the best site available in the downtown for this project and they feel it would be chosen even if the overall project had a higher price tag. However, if two projects came forward with this "best" site, the one with the lower price tag would probably be the winner. Ms. Auburn asked if that means the tenant is not sensitive to the quality of the building. Mr. Panzica responded that he did not mean that. The building would still be of high enough quality to meet their requirements, but would not be as permanent as they would like to propose. go South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) e. continued... Ms. Auburn stated that one of the issues with the Panzica proposal was the offer to pay a portion of the purchase price over time. Mr. Panzica stated that if that was the deciding factor, they would be willing to pay the entire amount at closing. Redevelopment staff encouraged them to be creative with their proposal because there were no Redevelopment funds available to assist with the project. Ms. Auburn asked if the developers would consider making their proposal not contingent on securing the lease with this tenant. Mr. Panzica responded that he thought that would be a tremendous penalty for either developer. They would have to find a different major tenant. They have had difficulty marketing this location previously because the perception is that the locations this far south in the downtown are unsafe. This tenant does not feel that way. This is probably the best chance of selling this location there has been for some time. That is why, once this tenant locates down there, Panzica feels they could build another building and lease it. Mr. Piasecki asked about the timetable for the second phase of the Panzica proposal. Mr. Panzica stated that they are dealing with representatives for several companies who are interested in this site if this other tenant moves in there. But, at this point, it is all speculative. In order to get financing for a second building, they would have to have it -19- South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) e. continued... substantially leased. They are very confident that if one project is done, the other would be done. It is possible that both would be done at the same time, but he can't say for sure that it would be built or when it would be built. Mr. Sharp asked why the tenant doesn't decide between these two proposals and then that one can make an offer for the land. Mrs. Kolata responded that the prospective tenant has written a letter indicating that it will only consider proposals from a responsive bidder. In order to be responsive, either one or both of them need to show that they control the site. She also noted that either or both will make their proposal to the tenant under the assumption that the Commission has accepted the specifics of their proposal to the Commission at this time. If the Commission does not like any part of the proposals, it should indicate that at this time. Ms. Auburn indicated that the Commission is very satisfied with both proposals as they relate to design, site utilization, etc. Mr. Piasecki made a motion that the Commission accept the proposal from Western Avenue Partnership (Panzica Development) for Parcel C9 -1 and C9 -2 in the South Bend Central Development Area. There was no second to the motion and the motion died. -20- MOTION TO ACCEPT THE PROPOSAL FROM WESTERN AVENUE PARTNERSHIP DIED FOR LACK OF A SECOND South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) e. continued... Mr. Sharp made a motion that the Commission accept the proposal from Western and Michigan Partners (Holladay Corp.) for Parcel C9 -1 and C9 -2 in the South Bend Central Development Area. There was no second to the motion and the motion died. Mr. Donoho made a motion to give an option on C9 -1 and C9 -2 to both Western Avenue Partnership and Western and Michigan Partners and make the award to whichever of them was successful in their proposal to the major tenant. Mr. Sharp amended that motion adding the condition that the successful bidder meet the Commission's sales criteria for the property value. Mr. Donoho accepted the amendment to his motion, but indicated that he did not have a problem with both developer's condition that the performance guarantee be refunded if their proposal was not selected by the tenant. Mr. Sharp seconded the motion as amended. Ms. Manier suggested a clarification. She felt it was the Commission's intent that the award be made for the major tenant being held confidential at this time and no other. Mr. Donoho agreed that that was his intent. Mrs. Kolata suggested setting a time limit of April 1, 1995 for this option. -21- MOTION TO ACCEPT THE PROPOSAL FROM WESTERN AND MICHIGAN PARTNERS DIED FOR LACK OF A SECOND South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) e. f. continued... Mr. Donoho amended his motion to include the April 1, 1995 deadline. Mr. Sharp accepted that deadline in his second of the motion. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission gave an option on Parcels C9 -1 and C9 -2 to both Western Avenue Partnership and Western and Michigan Partners committing to award the property to whichever of them was the successful bidder for the primary tenant, stipulating that the award must be made by April 1, 1995, that the purchase price be paid in full upon closing, and agreeing to refund the performance guarantee to one or both if either or both were not the successful bidder for the primary tenant and authorized the staff to execute whatever documents are necessary with the developers. Staff report on acquisition of property in the Sample -Ewing Development Area. Mrs. Kolata noted that the staff received a counter offer jointly from the owners of the property on which Midas Muffler is located, Burton and Axelburg, and the tenant of the Midas Muffler property, DE Installers. The counter offer is as follows: 1) Davment to the fee simple owners $335,000 for the real property; 2) a closing on the real property within 10 days of acceptance of the offer; 3) after closing the real estate shall be leased for the sum of $1.00 per month to Burton -22- COMMISSION GAVE AN OPTION ON PARCELS C9 -1 AND C9 -2 TO BOTH WESTERN AVENUE PARTNERSHIP AND WESTERN AND MICHIGAN PARTNERS COMMITTING TO AWARD THE PROPERTY TO WHICHEVER OF THEM WAS THE SUCCESSFUL BIDDER FOR THE PRIMARY TENANT, STIPULATING THAT THE AWARD MUST BE MADE BY APRIL 1, 1995, THAT THE PURCHASE PRICE BE PAID IN FULL UPON CLOSING, AND AGREEING TO REFUND THE PERFORMANCE GUARANTEE TO ONE OR BOTH IF EITHER OR BOTH WERE NOT THE SUCCESSFUL BIDDER FOR THE PRIMARY TENANT AND AUTHORIZED THE STAFF TO EXECUTE WHATEVER DOCUMENTS ARE NECESSARY WITH THE DEVELOPER South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) f. continued... and Axelburg who, in turn, will sublet it to DE Installers at their current rent; 4) that the term of the sublease from Burton and Axelburg to DE Installers shall end on the earlier of five days after DE Installers opens for business at its new location or February 28, 1995; 5) the Commission will pay $123,000 for relocation costs and its interest in its non movable fixtures; 6) this payment will be made in two components, the first of which shall occur 60 days after the date of the real estate closing and the second of which shall occur upon opening of business of DE Installers at its new location; 7) the Commission repair and replace curbs and sidewalks along South Street (the new location); 8) certain obligations related to the Midas Muffler franchise not be released until Midas Muffler opens at its new location. Mrs. Kolata noted that the staff does not recommend accepting the last condition and has made that known to the attorney for Midas Muffler but has not heard back from them. The Commission routinely has all liens and items cleared on the title before closing. She suggested the Commission accept the offer subject to satisfactorily resolving this issue. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission accepted the counter offer from Burton and Axelburg and DE Installers for property located at 1016 and 1102 S. Michigan Street in the Sample -Ewing -23- COMMISSION ACCEPTED THE COUNTER OFFER FROM BURTON AND AXELBURG AND DE INSTALLERS FOR PROPERTY LOCATED AT 1016 AND 1102 S. MICHIGAN STREET IN THE SAMPLE -EWING DEVELOPMENT AREA, SUBJECT TO SATISFACTORILY RESOLVING THE LAST ITEM ON THEIR COUNTER OFFER South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) f. continued... Development Area, subject to satisfactorily resolving the last item on their counter offer. g. Staff report on disposition of property in the Sample -Ewing Development Area. Mrs. Kolata noted that the Commission had previously received a proposal from the Firemen's Credit Union to purchase the former Policemen's Federal Credit Union building and move it to Parcel 19 in the Studebaker Corridor, adjacent to the present Policemen's Federal Credit Union. We have subsequently received an offer to purchase the same lot. The offer is from APPA Champion Soft Water Company, Inc. They have offered $30,000 for the lot and propose a 5,000 - 7,500 square foot building to house their offices, retail sales space, warehousing, and proposed water bottling plant. Mrs. Kolata noted that there are some issues with the Firemen's Credit Union proposal related to the need to relocate utility lines in a vacated alley. It appears that the proposal from Champion Soft Water does not require the Commission to move those utility lines. Mrs. Kolata suggested that the Commission refer the proposal to the staff for review and recommendation. There was no objection and the proposal was PROPOSAL REFERRED TO STAFF FOR referred to staff for review. REVIEW -24- South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) h. Commission approval requested for Proposal from ATEC Associates, Inc. for Professional Services in the Sample -Ewing Development Area. Mrs. Kolata asked that this item be tabled i. Commission approval requested for Commercial Lease in the Sample -Ewing Development Area. Mrs. Kolata noted that we have closed on the purchase of the Main Muffler property. This is a lease of the property back to Pete Mattheos until December 31, 1994 when that business is expected to be relocated. The rent will be $1.00 per month. Mr. Mattheos will be responsible for all maintenance. The lease allows Mr. Mattheos to remove anything he wants from the building. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Commercial Lease with Pete Mattheos for the Midas Muffler Shop in the Sample -Ewing Development Area. j. Commission approval requested for Additional Funds in connection with the Roof Loan Program for property located at 2811 Northside Boulevard. (Kathleen Buys) Mrs. Kolata explained that when the workers tore off the roof at 2811 Northside they found extensive structural damage from termites. In order to finish the job the -25- ITEM 6.11. WAS TABLED COMMISSION APPROVED THE COMMERCIAL LEASE WITH PETE MATTHEOS FOR THE MIDAS MUFFLER SHOP IN THE SAMPLE -EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) j. continued... reconstructive work was authorized at an additional cost of $355. Another $755 is needed for treatment of active termites for a change order of $1,055. The term of the loan to Ms. Huys was extended to include the additional amount, keeping payments the same. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Additional Funds in connection with the Roof Loan Program for property located at 2811 Northside Boulevard. (Kathleen Huys) k. Commission approval requested for Loan in connection with the Roof Loan Program for property located at 2622 Fredrickson. (Teresa Markham) Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Loan in the amount of $3,100 in connection with the Roof Loan Program for property located at 2622 Fredrickson. (Teresa Markham) 1. Commission approval requested for Loan in connection with the Roof Loan Program for property located at 1627 S. St. Joseph Street. (Edward Berry & Dennis Evans) Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Loan in the amount of $6,150 in connection with the -26- COMMISSION APPROVED THE ADDITIONAL FUNDS IN CONNECTION WITH THE ROOF LOAN PROGRAM FOR PROPERTY LOCATED AT 2811 NORTHSIDE BOULEVARD. (KATHLEEN HUYS) COMMISSION APPROVED THE LOAN IN THE AMOUNT OF $3,100 IN CONNECTION WITH THE ROOF LOAN PROGRAM FOR PROPERTY LOCATED AT 2622 FREDRICKSON. (TERESA MARKHAM) South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) n. continued... Roof Loan Program for property located at 1627 S. St. Joseph Street. (Edward Berry & Dennis Evans) m. Commission approval requested for Loan in connection with the Roof Loan Program for property located at 1203 W. Dunham. (Louise R. Robertson) Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Loan in the amount of $3,300 in connection with the Roof Loan Program for property located at 1203 W. Dunham. (Louise R. Robertson) n. Commission approval requested for Loan in connection with the Roof Loan Program for property located at 725 S. Carlisle Street. (Joyce Savari - Miller) Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Loan in the amount of $750 in connection with the Roof Loan Program for property located at 725 S. Carlisle Street. (Joyce Savari- Miller) o. Commission approval requested for Certificate of Waiver for property located at 717 N. Blaine Street. (Kenneth H. and Janice R. Miller) -27- COMMISSION APPROVED THE LOAN IN THE AMOUNT OF $6,150 IN CONNECTION WITH THE ROOF LOAN PROGRAM FOR PROPERTY LOCATED AT 1627 S. ST. JOSEPH STREET. (EDWARD BERRY & DENNIS EVANS) COMMISSION APPROVED THE LOAN IN THE AMOUNT OF $3,300 IN CONNECTION WITH THE ROOF LOAN PROGRAM FOR PROPERTY LOCATED AT 1203 W. DUNHAM (LOUISE R. ROBERTSON) COMMISSION APPROVED THE LOAN IN THE AMOUNT OF $750 IN CONNECTION WITH THE ROOF LOAN PROGRAM FOR PROPERTY LOCATED AT 725 S. CARLISLE STREET. (JOYCE SAVARI- MILLER) South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) o. continued... Upon a motion by Mr. Donoho, seconded by Mr. Piasecld and unanimously carried, the Commission approved the Certificate of Waiver for property located at 717 N. Blaine Street, waiving $1,600 as of May 1 for each of the years 1993 and 1994. (Kenneth H. and Janice R. Miller) p. Commission approval requested for Certificate of Waiver for property located at 431 Cottage Grove. (Housing Development Corporation) Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved the Certificate of Waiver for property located at 431 Cottage Grove, waiving $1740 as of December 22 for the years 1992 and 1993. (Housing Development Corporation) q. Commission approval requested for Extension of Contract for Professional Services with Camiros in the Sample - Ewing Development Area. (Rum Village) Mrs. Kolata explained that Camiros is providing planning services in the Rum Village neighborhood. Their contract is to be extended from November 15, 1994 to March 30, 1995. This is in agreement with what the Rum Village Neighborhood would like to do. -28- COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR PROPERTY LOCATED AT 717 N. BLAINE STREET (KENNETH H. AND JANICE R. MILLER) COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR PROPERTY LOCATED AT 431 COTTAGE GROVE (HOUSING DEVELOPMENT CORPORATION) South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) q. continued... Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the Extension of Contract for Professional Services with Camiros in the Sample -Ewing Development Area. (Rum Village) r. Commission approval requested for Proposal for Professional Services in the West Washington - Chapin Development Area. (Appraisal Services) Mrs. Kolata explained that items 6.r., 6.s., 6.t, and 6.u. are related to the acquisition of six properties along South Chapin Street. Jerome Michaels and Richard McCloskey have both proposed to do the six appraisals for $3,500. The staff recommends approving the proposals. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved the proposals from Jerome Michaels and Richard McCloskey for Appraisal Services in the West Washington - Chapin Development Area. S. Commission approval requested for Professional Services in the West Washington - Chapin Development Area. (Survey Work) Mrs. Kolata asked that item 6.s. be tabled. t. Commission approval requested for Professional Services in the West Washington- Chapin Development Area. (Title Work) -29- COMMISSION APPROVED THE EXTENSION OF CONTRACT FOR PROFESSIONAL SERVICES WITH CAMIROS IN THE SAMPLE - EWING DEVELOPMENT AREA. (RUM VILLAGE) COMMISSION APPROVED THE PROPOSALS FROM JEROME MICHAELS AND RICHARD MCCLOSKEY FOR APPRAISAL SERVICES IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA ITEM 6.S. WAS TABLED South Bend Redevelopment Commission Regular Meeting - October 7, 1994 6. NEW BUSINESS (Cont.) t. continued... Mrs. Kolata noted that York Title has proposed to perform the title work for the six properties for a cost of $135 per parcel. The staff recommends accepting the offer. Upon a motion by Mr. Donoho, seconded COMMISSION ACCEPTED THE PROPOSAL by Mr. Piasecki and unanimously carried, FROM YORK TITLE FOR TITLE WORK IN the Commission accepted the proposal from THE WEST WASHINGTON- CHAPIN York Title for title work in the West DEVELOPMENT AREA Washington - Chapin Development Area. 6. NEW BUSINESS (Cont.) u. Commission approval requested for Professional Services in the West Washington - Chapin Development Area. (Demolition) Mrs. Kolata noted that Ken Herceg has proposed to demolish one commercial structure and remove one storage tank at 239 -241 S. Chapin Street. The total fee is estimated at $14,100. The staff recommends accepting the offer. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission accepted the proposal from Ken Herceg & Associates for demolition services in the West Washington - Chapin Development Area. 7. PROGRESS REPORTS There were no Progress Reports. -30- COMMISSION ACCEPTED THE PROPOSAL FROM KEN HERCEG & ASSOCIATES FOR DEMOLITION SERVICES IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA THERE WERE NO PROGRESS REPORTS South Bend Redevelopment Commission Regular Meeting - October 7, 1994 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for October 21, 1994 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Commission, Mr. Piasecki made a motion that the meeting be adjourned. Mr. Sharp seconded the motion and the meeting was adjourned at 12:03 p.m. Paula N. Auburn, President r' -31- NEXT COMMISSION MEETING ADJOURNMENT Ann E. Kolata, Director