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Home My WebLink AboutRM 12-02-94SOUTH BEND REDEVELOPMENT COMIVIISSION REGULAR MEETING December 2, 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. Theo F. Sharp, Secretary Mr. Michael Donoho Mr. Philip Faccenda Legal Counsel: Ms. Ann Burneel Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Recording Secretary Mr. James Riggs, Economic Dev. Specialist Business Assistanct Staff: Mr. Michael Beitzinger, Economic Dev. Specialist Media: Mr. Thom Howell, U -93 Mr. Donald Porter, South Bend Tribune Others: Mr. Carter Wolf, Center City Associates Mr. Jim Cierzniak Mr. Michael Rippey Mr. Tom Lydowski, Advanced Masonry Ms. Auburn noted that the Executive Sesssion will continue immediately following adjournment of the Regular Meeting. 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday, November 18, 1994. C; -1- South Bend Redevelopment Commission Regular Meeting - December 2, 1994 2. APPROVAL OF MINUTES (Cont.) a. continued... Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, November 18, 1994. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, NOVEMBER 18, 1994 Redevelopment Commission Claims submitted December 2, 1994, for approval. ADMIN 1994 (212 Gene's Camera Store Inc. $ 14.98 Federal Express $ 37.25 Petty Cash $ 133.28 Business Systems $ 87.48 H. J. Umbaugh & Associates $ 3,530.00 Indiana Notary Association $ 66.95 Real Estate Management Corp. $ 868.41 St. Joseph County Recorders Office $ 70.00 NBD Skokie Bank N.A. Visa $ 44.84 Tom Eddington $ 55.20 Benton Harbor Awning & Tent Co. $ 175.00 Indiana Economic Development Association $ 150.00 SAMPLE - EWING DEVELOPMENT AREA (414) Rieth Riley $ 3,462.66 Coldwell Banker $ 100.00 Douglas L Carpenter & Associates $ 450.00 Camiros LTD $ 8X0.86 Indiana Michigan Power Company $ 43.93 Petty Cash $ 314.00 Joseph C. Odynski $ 350.00 St. Joseph County Clerk $ 50,038.06 Donald K. Fewell $ 375.00 Douglas L. Carpenter $ 300.00 Warner & Sons, Inc. $ 5,930.00 McCloskey -Pitts & Assoc. $ 2,000.00 Al Kapitan $ 195.00 -2- South Bend Redevelopment Commission Regular Meeting - December 2, 1994 3. APPROVAL OF CLAIMS (Cont.) S.B.C.D.A. T.I.F. GENERAL ACCOUNT (4201 AT &T Ameritech South Bend Water Works Leedy /Cripe Architects P.C. HP Products Howard Park Hardware EIS Environmental Engineers Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved the Claims submitted December 2, 1994. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS a. Commission approval requested for Resolution No. 1300 approving an application for real property tax deduction for property located at 828 Kerr Street in the Sample -Ewing Development Area. (Advanced Masonry Construction, Inc.) Mr. Beitzinger read the staff report on the project. Advanced Masonry is a trade contractor specializing in masonry work, stone setting and other stone work primarily for commercial, industrial and institutional buildings. Their project calls for the construction of a 4,000 + square foot building addition and renovation of the existing 10,000 square foot building. -3- $ 26.02 $ 95.67 $ 6,137.04 $ 540.40 $ 53.85 $ 55.42 $ 1,562.23 COMMISSION APPROVED CLAIMS SUBMITTED DECEMBER 2, 1994 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - December 2, 1994 6. NEW BUSINESS (Cont.) a. continued... The renovations include upgrading the electrical, new lighting and complete interior and exterior painting. The building addition will be utilized for office space. The petitioner has indicated that this project is necessary to facilitate the continued growth of the business. The total project cost is estimated to be $191,000. It is estimated that this project will create four new jobs within the first year, representing a new annual payroll of $121,000 and will maintain between seventeen and forty existing jobs with an annual payroll of $502,000. Advanced Masonry has not been granted any previous tax abatement consideration. The property is properly zoned for the proposed use. The property is located in a Tax Abatement Impact Area. It is also located in the Sample -Ewing Development Area, a Tax Incremental Financing Allocation Area. A review of the Tax Abatement Ordinance indicates that the project does not qualify for real property tax abatement; however, Advanced Masonry is going to request consideration for a three year abatement as a special exception. Mr. Beitzinger noted that the petitioner intends to use the building primarily for warehousing purposes and would qualify for tax abatement with this location in the Urban Enterprise Zone and the Sample - Ewing Development Area. However, the company's SIC code does not fall within one of the allowable uses. However, the Commission has previously recommended -4- South Bend Redevelopment Commission CO Regular Meeting - December 2, 1994 6. NEW BUSINESS (Cont.) a. continued... a tax abatement for Murdock and Sons Construction Company under similar circumstances for their warehouse project at 1320 S. Franklin Street. A review of the cost of the abatement shows that, with a total project cost of $191,000 and a constant tax rate, the project would generate approximately $28,446 in new taxes over the three year period, without abatement. With abatement, the taxes paid would be approximately $9,577. Therefore the cost of the abatement over the three year period will be approximately $18,869. Mr. Tom Lydowski displayed schematic drawings of the renovated and expanded building. The building will have a masonry front and masonry on part of the side. He noted that there has been no new development to nearby property. He hopes this renovation will encourage other property owners to improve their properties. Upon a motion by Mr. Sharp, seconded by Mr. Piasecki and unanimously carried, the Commission approved Resolution No. 1300 approving an application for real property tax abatement for property located at 828 Kerr Street in the Sample - Ewing Development Area. (Advanced Masonry Construction, Inc.) b. Staff report on disposition of property in the South Bend Central Development Area. -5- COMMISSION APPROVED RESOLUTION NO. 1300 APPROVING AN APPLICATION FOR REAL PROPERTY TAX ABATEMENT FOR PROPERTY LOCATED AT 828 KERR STREET IN THE SAMPLE -EWING DEVELOPMENT AREA. (ADVANCED MASONRY CONSTRUCTION, INC.) South Bend Redevelopment Commission Regular Meeting - December 2, 1994 6. NEW BUSEWSS (Cont.) b. continued... Mrs. Kolata noted that the Commission previously received a proposal from the Zion Hill Missionary Baptist Church to purchase the property and building located at 310 W. Monroe Street. We have been in negotiation with them regarding the amount they offered and have received a revised proposal offering $10,000 for the property. Zion Hill Missionary Baptist noted that they have provided all of the upkeep of the building since they began leasing it from the Commission. There are a number of important repairs that need to be made to the building. They are not willing to do those repairs to a leased building. Their offer for the building is based upon its needing these expensive repairs. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission accepted the counter offer from Zion Hill Missionary Baptist Church for purchase of the property at 310 W. Monroe Street in the Sample -Ewing Development Area. C. Commission approval requested for 1995 rates for Blackthorn Golf Course. Mr. Faccenda reported to the Commission that the Blackthorn Joint Committee met on November 18 to receive a status report on the golf course and to consider rate changes for 1995 and the proposed 1995 budget. Mr. Faccenda noted that the golf course staff and North American Golf are very encouraged with the success of the project so far. Earnings are better than US COMMISSION ACCEPTED THE COUNTER OFFER FROM ZION HILL MISSIONARY BAPTIST CHURCH FOR PURCHASE OF THE PROPERTY AT 310 W. MONROE STREET IN THE SAMPLE -EWING DEVELOPMENT AREA � South Bend Redevelopment Commission \r% Regular Meeting - December 2, 1994 6. NEW BUSINESS (Cont.) C. continued... projected. Mr. Faccenda stressed that Blackthorn Golf Course is only the first development of Blackthorn Corporate Park. The success of the golf course has drawn attention away from Chicago and its suburbs to South Bend for business development. Mrs. Kolata noted that the Blackthorn Joint Committee considered the proposed 1995 rates for Blackthorn Golf Course and the proposed 1995 budget and recommends that the Commission accept them. She asked Mr. Rippey to explain both items. Mr. Rippey noted that the preliminary 1994 -1995 budget proposed to use the same pricing in both 1994 and 1995. The staff recommends keeping the basic rates for residents and non - residents the same in 1995 ($39.00 resident weekday; $43.00 resident weekend; $51.00 non - resident weekday; $56.00 non - resident weekend, including cart). In addition, the staff recommends some changes based on experience thus far: 1) start twilight rate one hour earlier to encourage its use; 2) establish a 9 -hole rate the first two hours of tee times and last two hours of tee times each day ($20.00 resident weekday and $26.00 non - resident weekday); 3) offer an off season rate before and after the official season. Mr. Rippey noted that these changes do not diminish the revenue stream for the heart of the season; rather, they create opportunities to increase the course revenue. -7- South Bend Redevelopment Commission Regular Meeting - December 2, 1994 6. NEW BUSINESS (Cont.) C. continued... Mr. Rippey noted that golf course business is measured on gross revenues per round of golf. Since opening Labor Day weekend, the average revenue per round has been $54.66, including food and beverage and merchandise. The 1995 proposed budget is based on that same rate of income per round played. Mr. Rippey noted that the only change made to the proposed 1995 budget since August is to reduce the projected income from running the golf school to break -even since 1995 will be the first year for the golf school. The budget is based on projected 30,000 rounds of golf played (9,000 non - resident and 21,000 resident rounds). Mr. Cierzniak asked if there are other communities where the Redevelopment Commission owns a golf course. Mr. Rippey responded that North American Golf is working with Lake St. Louis, Missouri, where their public facilities authority owns the golf course. That agency is similar to the Redevelopment Commission. He also mentioned one in Hampton Virginia that has been very successful and he believes there are others. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved the 1995 rates for Blackthorn Golf Course. d. Commission approval requested for 1995 Operating Budget for Blackthorn Golf Course. COMMISSION APPROVED THE 1995 RATES FOR BLACKTHORN GOLF COURSE South Bend Redevelopment Commission Regular Meeting - December 2, 1994 6. NEW BUSEUSS (Cont.) d. continued... Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved the 1995 Budget for Blackthom Golf Course. e. Commission approval requested for Commercial Lease in the South Bend Central Development Area. (Office Interiors) Mrs. Kolata noted that Office Interiors is currently a tenant in the Palais Royale building. This lease is a continuation of the present lease of 3,197 square feet at $7.50 per square foot. The term of the lease is to October 11, 1996 with an option to renew for an additional three years. Office Interiors has been a good tenant and an attractive business for that comer. Upon a motion by Mr. Sharp, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Commercial Lease with Office Interiors in the South Bend Central Development Area. 7. PROGRESS REPORTS Mrs. Kolata acknowledged that F. Jay Nimtz day was December 1 at the Colfax Cultural Center. Mr. Piasecki, last year's recipient of the F. Jay Nimtz Award, made the comments this year. He did a wonderful job of recapping Redevelopment accomplishements over the last 13 years. It was a good time of memories. Mr. DeWitt Hunter was this year's recipient of LIA the F. Jay Nimtz Award. In COMMISSION APPROVED THE 1995 BUDGET FOR BLACKTHORN GOLF COURSE COMMISSION APPROVED THE COMMERCIAL LEASE WITH OFFICE INTERIORS IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA PROGRESS REPORTS G South Bend Redevelopment Commission Regular Meeting - December 2, 1994 7. PROGRESS REPORTS (Cont.) Mr. Wolf reported that the Central High School Apartments has pre- leased 23 apartments already. It is a really unique renovation. Stephenson Mill Apartments has leased 37 of its 39 apartments. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for December 16, 2994 at 10:00 a.m. 9. ADJOURNNffM There being no further business to come before the Commission, Mr. Piasecki made a. motion that the meeting be adjourned. Mr. Faccenda seconded the motion and the meeting was adjourned at 10:42 a.m. G� ) e L L� Paula N. Auburn, President -10- NEXT COMMISSION MEETING ADJOURNMENT Ann'-E. Kolata, Director