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Home My WebLink AboutRM 11-18-94SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING November 18, 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 Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Recording Secretary Business Assistanct Staff: Mr. Michael Beitzinger, Economic Dev. Specialist Bureau of Housing Staff: Ms. Mary Richmond Media: Mr. Thom Howell, U -93 Mr. Donald Porter, South Bend Tribune Others: Mr. Carter Wolf, Center City Associates Mr. Jim Seaver, Eaton Corporation Mr. Phil Watson, Eaton Corporation 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday, November 4, 1994. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, November 4, 1994. -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, NOVEMBER 4, 1994 South Bend Redevelopment Commission it Regular Meeting - November 18, 1994 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted November 18, 1994 for approval. ADMIN 1994 (212 Business Systems $ 67.45 South Bend Tribune $ 109.46 Tri County News $ 41.27 Dept. of Code Enforcement $ 680.00 Indiana Michigan Power Co. $ 6.65 Real Estate Management Corp. $ 883.31 Superior Waste Systems $ 58.00 Feather Dusters, Inc. $ 75.00 AIRPORT TIF REVENUE (324 $ 53.60 South Bend Park Dept. $ 50,005.21 SAMPLE -EWING DEVELOPMENT AREA (414) York Title & Escrow $ 350.00 South Bend Water Works $ 221.22 Indiana Michigan Power Co. $ 5,853.33 Superior Waste Systems $ 54.65 Repair Inc. $ 895.50 Delta Consulting Service Inc. $ 680.00 ATEC Associates Inc. $ 2,500.00 Norwest Bank Indiana N.A. Trustee $ 531.40 St Joseph County Treasurer $ 53.60 DE Installers $ 61,500.00 Michiana Lock & Key $ 44.00 Ethel Nyikos & Erich B. Seifert $ 610.00 Ethel Nyikos $ 63.00 Royal Fence Corp. $ 815.00 S.B.C.D.A. T.I.F. GENERAL ACCOUNT (420 York Title & Escrow, Inc. $ 150.00 Peirce & Associates $ 85.00 HRP Construction Inc. $ 5303.50 N.I.P.S.C.O $ 16.20 Indiana Michigan Power Co. $ 363.69 Real Estate Management Corp. $ 505.58 -2- South Bend Redevelopment Commission Regular Meeting - November 18, 1994 5. 6. APPROVAL OF CLAIMS (Cont.) S.B.C.D.A. T.I.F. GENERAL ACCOUNT (420) ATEC Associates, Inc. $ 1,850.00 Gates Chevrolet Corp. $ 900.00 Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved the Claims submitted November 18, 1994. OLD BUSINESS There was no Old Business. NEW BUSINESS Mrs. Kolata asked permission to add two items to the agenda. There was no objection and items 61. and item 6.1. were added. a. Commission approval requested for Resolution No. 1297 approving an application for real property tax deduction for property located at 2930 Foundation Drive in the Airport Economic Development Area. (Eaton Corporation) Mr. Beitzinger read the staff report on the project. Eaton Corporation is a forging plant that manufactures parts for use in the truck industry. Their project calls for the construction of a 30,000 square foot addition to the existing building and the purchase of a 3,000 ton forge press and its related equipment. The building addition will house the new forge press (and future production space) and will include new offices, a new -3- COMMISSION APPROVED THE CLAIMS SUBMITTED NOVEMBER 18, 1994 THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - November 18, 1994 6. NEW BUSINESS (Cont.) a. continued... cafeteria, locker rooms and team rooms. The new 3,000 ton forge press is necessary to meet present customer demand. This project will enable the South Bend plant to become the single source of forgings for the Eaton Transmission Division. The cost of the building addition is estimated at $1,800,000 and the cost of the new equipment at $2,100,000 for a total project cost of $3,900,000. Per the petitions, it is estimated that this project will create a total of twenty new permanent full-time jobs in the first year, representing an annual payroll of $550,000 and will maintain eighty -six existing permanent full-time and existing part-time jobs with an annual payroll of $1, 884,000. Eaton Corporation was granted a personal property tax abatement on October 26, 1992 and is in compliance with the reporting requirements for the previous abatement. The project is properly zoned for the proposed use. The property is not located in an area presently designated as a Tax Abatement Impact Area, but is located in the Airport Economic Development Area, which is a tax incremental financing allocation area. The project qualifies for ten years of real property tax abatement and five years of -4- South Bend Redevelopment Commission Regular Meeting - November 18, 1994 6. NEW BUSINESS (Cont.) a. continued... personal property tax abatement under the Tax Abatement Ordinance. A review of the cost of the real property tax abatement shows that, with a project cost of $1,800,000 and a constant tax rate, the taxes on the new construction would be approximately $891,828 without abatement. With abatement, the taxes would be approximately $450,373. therefore, the cost of the real property abatement would be approximately $441,455 over the ten year period. A review of the cost of the personal property tax abatement shows that, with an estimated equipment cost of $2,100,000 and a constant tax rate, the taxes to be abated would be approximately $201,851. With abatement, the taxes paid will be approximately $35,792. Therefore, the cost of the personal property tax abatement would be approximately $166,059 over the five year period. Mr. Beitzinger noted that when Eaton Corporation received its tax abatement in 1992, they employed approximately 50 people and expected to add about 20 jobs with the expansion at that time. They now employ 86 people. -5- South Bend Redevelopment Commission Regular Meeting - November 18, 1994 6. NEW BUSINESS (Cont.) a. continued... Upon a motion by Mr. Sharp, seconded by Mr. Piasecid and unanimously carried, the Commission approved Resolution No. 1297 approving an application for real property tax deduction for property located at 2930 Foundation Drive in the Airport Economic Development Area. (Eaton Corporation) b. Commission approval requested for Resolution No. 1298 approving an application for personal property tax deduction for property located at 2930 Foundation Drive in the Airport Economic Development Area. (Eaton Corporation) Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1298 approving an application for personal property tax deduction for property located at 2930 Foundation Drive in the Airport Economic Development Area. (Eaton Corporation) C. Commission approval requested for Loan in connection with the Roof Loan Program for property located at 330 N. Walnut Street. (Thomas & Verda Campbell) Mrs. Kolata noted that the loan to Thomas and Verda Campbell is in the COMMISSION APPROVED RESOLUTION NO. 1297 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2930 FOUNDATION DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (EATON CORPORATION) COMMISSION APPROVED RESOLUTION NO. 1298 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2930 FOUNDATION DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (EATON CORPORATION) South Bend Redevelopment Commission Regular Meeting - November 18, 1994 6. NEW BUSINESS (Cont.) C. continued... amount of $4,400 at 0% interest for 48 months. Payments are $91.66 per month. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved the Loan in connection with the Roof Loan Program for property located at 330 N. Walnut Street. (Thomas & Verda Campbell) d. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 1625 Sibley Avenue. (Dorothy Hairston) Mrs. Kolata noted that the Loan to Dorothy Hairston is in the amount of $4,700.00 at 3 % interest for 72 months. Payments are $71.41 per month. The he proposal includes a 40% grant of $2,937.00 which is 40% of the project cost. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property located at 1625 Sibley Avenue. (Dorothy Hairston) -7- COMMISSION APPROVED THE LOAN IN CONNECTION WITH THE ROOF LOAN PROGRAM FOR PROPERTY LOCATED AT 330 N. WALNUT STREET. (THOMAS & VERDA CAMPBELL) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 1625 SIBLEY AVENUE. (DOROTHY HAIRSTON) South Bend Redevelopment Commission Regular Meeting - November 18, 1994 6. NEW BUSINESS (Cont.) e. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 1502 W. Calvert. (Firdia and Virginia Johnson) Mrs. Kolata noted that the Loan to Firdia Johnson is in the amount of $5,900.00 at 4% interest for 96 months. Payments are $71.92 per month. The proposal includes a 40% grant of $3,758.04. Upon a motion by Mr. Donoho, COMMISSION APPROVED THE LOAN AND seconded by Mr. Piasecki and GRANT IN CONNECTION WITH THE unanimously carried, the Commission AFFORDABLE LOAN PROGRAM FOR approved the Loan and Grant in PROPERTY LOCATED AT 1502 W. CALVERT. connection with the Affordable Loan (FIRDIA JOHNSON) Program for property located at 1502 W. Calvert. (Firdia and Virginia Johnson) f. Staff report on disposition of property in the South Bend Central Development Area. There was no report at this time. THERE WAS NO REPORT g. Commission approval requested for Resolution No. 1299 approving the Fair Re-Use Value of Property in the Sample -Ewing Development Area. (Parcels No. 17, 25, 31A, and 31B) Mrs. Kolata explained that Resolution No. 1299 authorizes the sale of four parcels and sets the minimum offering price and proposed use for the parcels. Disposition Parcel 17 is a small city lot South Bend Redevelopment Commission Regular Meeting - November 18, 1994 6. NEW BUSINESS (Cont.) g. continued... on Lafayette Street. The proposed re- use for this parcel is light industrial. The re-use value is set at $3,400. Parcel 25 is located at the comer of Lafayette and Indiana. The re-use value is $24,225 and the proposed use is light industrial. Parcel 31A is located along Sample Street east of Carroll. It's re -use value is $15,700 and the proposed use is commercial. Parcel 31B is located along Ohio Street west of Fellows. The re-use value is $5,650 and the reuse must be compatible with the Sample -Ewing Development Area Development Plan. Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1299 approving the fair re -use value of property in the Sample - Ewing Development Area. h. Commission authorization requested to publish Notice of Intended Sale of Property in the Sample -Ewing Development Area with publication dates to be November 25 and December 2, 1994 and receipt of bids to be at December 16, 1994 at 10:00 a.m. (Parcels No. 17, 25, 31A, and 31B) Mrs. Kolata asked that this item be amended to indicate that it will be published twice instead of stipulating November 25 and December 2. We la COMMISSION APPROVED RESOLUTION NO. 1299 APPROVING THE FAIR RE -USE VALUE OF PROPERTY IN THE SAMPLE - EWING DEVELOPMENT AREA ?►, South Bend Redevelopment Commission Regular Meeting - November 18, 1994 6. NEW BUSINESS (Cont.) h. continued... have already sent the Notice of Intended Sale of Property to the press and it may be published November 18 and November 25. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission authorized the publication of the Notice of Intended Sale of Property in the Sample -Ewing Development Area twice with receipt of bids to be December 16, 1994 at 10:00 a.m. (Parcels No. 17, 25, 31A, and 31B) i. Commission approval requested for issuance of Estoppel Certificate for property located in the South Bend Central Development Area. Ms. Manier explained that THE Commission approved the Assignment of Lease of the 1st Source /Marriott Center from Aetna Casualty and Insurance to Host Marriott Corporation earlier this year. Host Marriott is now leasing the improvements on that site. They plan to refinance the project and need to provide this Estoppel Certificate to the lender. With the Estoppel Certificate the Commission certifies that it has not leased the premises to anyone other than Host Marriott Corporation and that Host Marriott has not defaulted on any of the terms of its lease. This document will be relied upon by the lender to provide financing. -10- COMMISSION AUTHORIZED THE PUBLICATION OF THE NOTICE OF INTENDED SALE OF PROPERTY IN THE SAMPLE -EWING DEVELOPMENT AREA TWICE WITH RECEIPT OF BIDS TO BE DECEMBER 16, 1994 AT 10:00 A.M. (PARCELS NO. 17, 25, 31A, AND 31B) South Bend Redevelopment Commission Regular Meeting - November 18, 1994 Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved the Estoppel Certificate for property located in the South Bend Central Development Area. j . Commission approval requested for Agreement for Asbestos Survey and Demolition Specifications in the Sample -Ewing Development Area. Mrs. Kolata noted that the Commission is in the process of purchasing a number of commercial buildings that will need to be demolished. In order to put together the demolition specifications, we need to know if there is asbestos present in the building. We have received two proposals. Grauvogel & Associates has proposed to perform the asbestos survey and to write demolition specifications for the 10 buildings for a total cost of $1,560. Larry Grauvogel has done this type of work for us before through Cole Associates and as a subcontractor for another company we hired. ATEC & Associates has proposed to do the same amount of work for $1, 870 per property. We have checked with Grauvogel & Associates to make sure the scope of services was the same and that the price quoted was accurate. Assured of that, the staff recommends accepting the proposal of Grauvogel & Associates. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission accepted the proposal of Grauvogel & Associates for ilia COMMISSION APPROVED THE ESTOPPEL CERTIFICATE FOR PROPERTY LOCATED IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA COMMISSION ACCEPTED THE PROPOSAL OF GRAUVOGEL & ASSOCIATES FOR ASBESTOS SURVEY AND DEMOLITION SPECIFICATIONS IN THE SAMPLE -EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - November 18, 1994 6. NEW BUSINESS (Cont.) j . continued... asbestos survey and demolition specifications in the Sample -Ewing Development Area. k. Commission approval requested for Disposition Schedule for the Removal and Relocation of Two Buildings located at 602 S. Michigan Street in the South Bend Central Development Area. Mrs. Kolata explained that the staff wishes to have two small metal buildings that are part of the Dreisbach property moved from the site. We have no reuse for them and would like to dispose of them. We understand that someone might like to purchase them, so we would like to put them up for bid. We will advertise on November 25 and December 2, 1994 and receive bids at 10:00 a.m. , Friday, December 16. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved the disposition schedule for the two buildings located at 602 S. Michigan Street in the South Bend Central Development Area. 1. Commission approval requested for use of the Morris Civic Plaza on December 1, 1994 by the South Bend Museum of Art. -12- COMMISSION APPROVED THE DISPOSITION SCHEDULE FOR THE TWO BUILDINGS LOCATED AT 602 S. MICHIGAN STREET IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - November 18, 1994 6. NEW BUSINESS (Cont.) 1. continued... Mrs. Kolata noted that the South Bend Museum of Art wishes to use the Morris Civic Plaza on December 1 from 5:00 p.m. to 8:30 p.m. They will supply proof of insurance and indemnification. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved the use of the Morris Civic Plaza by the South Bend Museum of Art on December 1, 1994. 7. PROGRESS REPORTS Mr. Wolf reported that the Center for History, which opened November 8 as part of the Northern Indiana Historical Society, is incredible. It will raise the standards for museums in the area. Mr. Wolf noted that Benchwarmers is open next to Heartland. It is nice to finally have that building fixed up. They are serving both lunch and dinner. Mr. Wolf noted that the Looking Glass Restaurant in the Marriott Hotel has a new menu and has changed its name to Allies American Grill. Though still reasonably priced, the quality and presentation is much improved. -13- COMMISSION APPROVED THE USE OF THE MORRIS CIVIC PLAZA BY THE SOUTH BEND MUSEUM OF ART ON DECEMBER 1, 1994 PROGRESS REPORTS South Bend Redevelopment Commission Regular Meeting - November 18, 1994 8. NEXT CONEMSSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for December 2, 1994 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Sharp made a motion that the meeting be adjourned. Mr. Piasecki seconded the motion and the meeting was adjourned at 10:41 a.m. Paula N. Auburn, President -14- NEXT COMMISSION MEETING ADJOURNMENT &/, .': � �e �/- - /t � - Ann E. Kolata, Director