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HomeMy WebLinkAboutRM 01-04-953 SOUTH BEND REDEVELOPMENT COMMISSION (' RESCHEDULED REGULAR MEETING I January 4, 1995 1308 County -City Building 10:00 a.m. 227 W. Jefferson Boulevard Presiding: Philip J. Faccenda South Bend, Indiana President 1. ROLL CALL Members Present: Mr. Philip J. Faccenda, President Ms. Paula N. Auburn, Vice - President Mr. Robert W. Hunt, Secretary Mr. Michael Donoho Members Absent: Mr. William P. Hojnacki Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Recording Secretary Mr. James Riggs, Economic Dev. Specialist y Mr. John Stark, Economic Dev. Specialist Mr. Gabriel Okafor, Economic Dev. Specialist Ms. Pamela Matchett, Economic Dev. Specialist Business Assistanct Staff: Mr. Michael Beitzinger, Economic Dev. Specialist Media: Mr. Donald Porter, South Bend Tribune Others: Mayor Joseph E. Kernan Mr. Carter Wolf, Center City Associates Mr. John Gould, Commonwealth Corp. Mr. Tom Sheehan Mr. Henry W. Taylor Ms. Travistene Taylor Mr. Dennis Kring Ms. Augusta Page Ms. Patricia Jordon Truman Mr. Tom Harris Ms. Lucy Harris Mr. Woodie H. Magee -1- South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 1. ROLL CALL (Cont.) Ms. Myrtha Hudson Mr. Lucius Hudson Ms. Barbara Hudson Ms. Carmel Fanin Mr. Frank Fanin Ms. Ella Mae lzaylor Ms. Evelyn Jelks Mr. Russell Sosnoski Ms. Annie Ward Ms. Tenner Rae Jones Mr. Jed Eide Ms. Lisa Paisiola Ms. Eules Wilson Sr. Mr. Jon Smith Mr. C. A. Nabaa Ms. Julia Nabaa Mr. Dennis Podell APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday, December 16, 1994. Upon a motion by Mr. Donoho, seconded COMMISSION APPROVED THE MINUTES OF by Ms. Auburn and unanimously carried, THE REGULAR MEETING OF FRIDAY, the Commission approved the Minutes of the DECEMBER 16, 1994 Regular Meeting of Friday, December 16, 1994. 3. APPROVAL OF CLAIMS ADMIN 1994 (212) Mobilecomm of South Bend NBD Skokie Bank N.A. Visa South Bend Tribune Tri- County News Inc. C $ 110.75 $ 784.99 $ 173.75 $ 249.58 South Bend Redevelopment Commission e'Rescheduled Regular Meeting - January 4, 1995 3. APPROVAL OF CLAIMS (Cont.) SAMPLE -EWING DEVELOPMENT AREA (414 Petty Cash $ 165.28 Wilson's Nursery & Landscaping $ 2,850.00 Teska & Associates Inc. $ 3,951.23 Nanci Stokes $ 202.50 ATEC Associates, Inc. $ 1,044.93 Indiana Michigan Power Co. $ 43.69 York Title & Escrow Inc. $ 300.00 Thomas General Construction $ 650.00 S.B. D. C. A. T.I.F. GENERAL ACCOUNT (420J Parking Garage Fund $ 20,016.51 Leedy /Cripe Architects, P.C. $ 523.60 Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Claims submitted ILJanuary 4, 1995. 4. COMMUNICATIONS There were no Communications. Mrs. Kolata requested that the Public Hearing, item 6.a., be considered at this time. There was no objection and item 6.a. was moved up on the agenda. 6. NEW BUSINESS a. Public Hearing on Resolution No. 1305 amending the Sample -Ewing Development Plan. Mrs. Kolata asked to enter the following items into the record: 1) An original of the "Notice of Hearing of the South Bend Central Development Area Development COMMISSION APPROVED CLAIMS SUBMITTED JANUARY 4, 1995 THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission AwRescheduled Regular Meeting - January 4, 1995 6. NEW BUSINFSS (Cont.) a. continued... Plan; 2) An affidavit of Carol Smith, Advertising Manager of the South Bend Tribune, that the Notice of Hearing was published in that daily newspaper on December 23, 1994; 3) An affidavit of Lisa J. Andrysiak, Classified Manager of the Tri- County News, that the Notice of Hearing was published in that weekly newspaper on December 23, 1994; 4) A memo from Ann Kolata that on December 16, 1994, she sent a copy of the Notice of Hearing to the affected property owners and registered neighborhood associations; 5) A copy of Resolution No. 1305 which is the subject of the public hearing; 6) As of 10:00 a.m. on January 4, 1995, 0 written remonstrances were received. Mr. Faccenda asked if there was any objection to entering the items into the record. There were no objections and the items were so entered. Mrs. Kolata explained that the purpose of Resolution No. 1305 is to add certain properties to the acquisition list which is part of the Development Plan for the Sample -Ewing Development Area. The properties being added to the acquisition list are south of Sample Street, east of Fellows Street, north of the alley between Broadway and Pennsylvania, and west of High Street and the railroad track. The staff intends to send purchase offers for these properties in phases throughout the year, beginning the -4- South Bend Redevelopment Commission j"Rescheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) a. continued... end of January. Mrs. Kolata noted that the Commission has nearly completed acquisition of the property west of Fellows between Sample and the alley between Pensylvania and Broadway. Mr. Faccenda opened the Public Hearing on Resolution No. 1305 amending the Sample - Ewing Development Area Development Plan. MR. NABAA: 601 Ohio Street. What are you developing in that area? MRS. KOLATA: The purpose of the acquisition wwould be to purchase the property, to clear it out... There is already a proposal being considered for new housing in the section outlined in pink. We would be adding in this area a relocated Dean Johnson Park, because we are eliminating the park that is between Fellows and Michigan and have committed to rebuilding the park in a new location in this part of the neighborhood. We would also expect to be working with Family and Children's Center on a Boys and Girls Club and other expanded facilities in the area. Those are some of the proposals at the present time. MR. NABAA: Some of those homes over there are fairly decent. There is no way we are going to be able to get the value of what we have invested in the residences there to compensate for having to go into new properties. What I'm seeing in some of -s- PUBLIC HEARING ON RESOLUTION NO. 1305 AMENDING THE SAMPLE -EWING DEVELOPMENT AREA DEVELOPMENT PLAN South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSEWSS (Cont.) a. continued... those areas that the South Bend Heritage has extended itself beyond what its original commitment to the area was and they have started building a section of property there. It's all new and well and good. But the idea of uprooting the people like that and keeping the people disabled in the area, that's a problem I have —I really do. Even with myself because we've just been there eight years and already we're going to have to give up and go someplace else. People can't settle down. You have elderly people who can't go out and buy the properties the way they bought them years ago. So, I'm only speaking for myself. Others might be happy to sell. MRS. KOLATA: I think you bring up points that are not uncommon. We've heard them before. I think we deal with them fairly effectively. First, if this is added to the acquisition list, and if you are sent a purchase offer (or if you are a tenant in a property that is being purchased), the Commission has a couple of different things. First, there is the purchase price for the property. The owner of the property is sent an offer based on two appraisals of the property. The fair market value is offered for the property and we are always willing to discuss with any property owner if they feel that it is not a fair offer. That's the first part of buying the property. The second addresses some of the issues Mr. Nabaa has mentioned: It may cost you EM South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) a. continued... more to go elsewhere. So there are relocation benefits available to those people who are being relocated. There are relocation benefits available to an owner of a property who is being relocated; there are relocation benefits to a tenant in a property who is being relocated. The idea of the relocation benefit is to offset the increased costs that may come about when you go buy a substitute house or rent a substitute property that costs you more. There are benefits that are available. Our staff works with each household on an individual basis. We have Gabriel Okafor, Project Manager, John Stark, Pam Matchett, and Hedy Robinson. We deal with everyone individually. You are also entitled to moving expenses. Generally, through discussion and looking at properties that are currently available, it will not be a financial burden to anyone to relocate. We follow the federal regulations on relocation and we feel that we work very carefully with people to get them into a situation that they can afford. Frequently, the relocation payments are large. Homeowner /occupants can receive as much as $22,500. A tenant can receive as much as $5,250 plus moving costs. What has to happen is that we need to provide everyone who is being asked to move information on what's currently on the market in the community and what the price is. If we offer to buy your house for $18,000 and a comparable house somewhere else would South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) a. continued... cost $28,000, then you'd be entitled to $10,000 of relocation payments. If your house was a lower value, say $10,000, and a comparable house is $30,000, your relocation payment would be $20,000. The circumstances are different for every individual. When we look at tenants we also look at ability to pay and compensate with a monthly payment that picks up the additional cost of housing expense. It's something that everyone is always concerned about, but we feel that those who have gone through our process have been treated fairly. We understand the emotional ties that people have to the neighborhood and try to work with them carefully —I know it's disruptive —so we try to minimize the disruption so that, economically, people do not suffer for the move. We do try to work individually with everyone who is there. I don't know if anyone is from a business. I know there are one or two businesses that we are looking at in that area. Business relocations are similar, but there are different expenses. We have a different set of rules for business relocations than we do for home owners or tenants. DENMS KRING: Hydronic & Steam Equipment Company. When do you discuss business relocations? -8- APIN South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) a. continued... MRS. KOLATA: What we will do, whether it's a business or a tenant or a homeowner is just meet individually with each of you. Basically, businesses are eligible for moving costs. Moving costs can be everything from packing up, dismantling equipment, connecting equipment, modifying a building to meet needs that aren't in the replacement building. We would do that on an individual basis. Generally, as soon as we know we are going to start sending out purchase offers, we start meeting with people and finding out what their needs are: what size building you need, what area you r are looking for, etc. We will try to help you identify possible locations and would then outline what the benefits are. CARMEL FANIN: How soon are you going to acquire the property? MRS. KOLATA: It varies. I think some purchase offers will be authorized, maybe, in two weeks. Others might be as much as a year. We're probably going to be concentrating in the area to the north. That will be the first area for which we'll be sending purchase offers. Then, the area along Wenger or Pennsylvania we probably wouldn't get to until later in the year. (Someone): What is your time frame on that section of property there? C -9- V South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) a. continued... MRS. KoLATA: That we would start sending purchase offers and then proceed with them in a steady pace. (Someone): You say you'd be sending them out as soon as two weeks. What does that mean as to exactly acquiring the property? Is it going to be six months, nine months? MRS. KOLATA: After the Commission authorizes the purchase offer (They pass a resolution that sets the offering price. That's based on appraisals.), we would send an offer. That offer is pretty long. It spells out all your legal rights and basically says we offer you "X" dollars for your property and you have thirty days to respond to this offer. If you don't respond or if we can't reach agreement within thirty days, we have the right to go to court to take the property by eminent domain. In reality, what happens is that we send the offer, we hope that we will hear back from you, either in writing or by phone. If we don't hear from you within a couple of weeks, we call you, asking if you have received the offer and if you are planning on accepting. We'll be glad to meet with anyone on an individual basis, but when you get an offer, you have three options: you can accept it, you can reject it, or you can send us a counter offer. The Commission will consider counter offers, but they have to be based on some logic. The Commission's original purchase offer is �� -10- South Bend Redevelopment Commission A"'l-scheduled Regular Meeting - January 4, 1995 6. NEW BUSEWESS (Cont.) a. continued... based on two appraisals. If, for example, your property is worth $10,000, you couldn't just say, "I want $100,000 for my property. " You have to have some basis for why you think your property is worth $100,000. It would be up to you, if you make a counter offer, to say why you believe that is a reasonable counter offer. The staff will try to negotiate with all of the property owners one on one and will proceed as rapidly as we can. The offer says that after thirty days we could go to condemnation. We won't go to condemnation if we are negotiating with you. We will try to work it out, even if it goes more than thirty days. I think in the past we have gone substantially longer than thirty days before we have ever filed a condemnation. If we can work something out, it's to all of our advantages to do so. Sometimes people want to see the whole package (purchase and relocation benefits) together so they know what they have to work with. We would just work with you on as expeditious a schedule as we can. RUSS SOZNOSKY: I five in the 700 block of Wenger Street. I don't know about the rest of the people here, but I took a lot longer than thirty days in finding my house now. You're saying you've got thirty days.... MRS. KOLATA: No, I'm saying the purchase offer says thirty days. That isn't when you have to move. What we want to do is negotiate with you within a thirty-day period South Bend Redevelopment Commission A—Rescheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) a. continued... after we send the purchase offer. But the actual moving... we can't force you out until you have a place to go. MR. SOSNOSKI: But I can't even look until I know what kind of money we're talking about. And then I have to find it within thirty days. MRS. KOLATA: No, you don't have to find it within thirty days. You're right, you have to know how much money you have to work with and that's both what we're paying you for your property and your relocation benefits. So you need to know what that amount is and start looking. But you can reach an agreement.... We've had closings where we've bought a property and someone hasn't moved for another two to three months. That generally would work. MR. SOSNOSKI: You're missing my point. My point is that your offer —I've got to find something for the purchase price plus relocation within thirty days in order to accept your offer. If I can't find anything, I sure don't want to accept your offer. MRS. KOLATA: You may not want to accept the offer until you know what the end spot is. Some folks won't feel that way. They feel comfortable knowing that they are going to have a certain amount of money available to them and there are several houses on the market in that price range. We will work with you on that. sw -12- South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) a. continued... MR. SOSNOSKI: I thought I'd stay here until they put me in the ground. Now I've got to find another spot. Plus, another question. What can or should I do to my home. I don't want to live in a rat hole. But I don't want to invest a grand or something that I won't get back out of it. MRS. KOLATA: We've had that before. We had a gentleman who said, "My furnace is broken, what should we do ?" We said, "Fix the furnace and keep the receipt." If you should have a repair like that or some improvement you are making... I wouldn't start a brand new remodelling project, but if you have something that effects your safety i or comfort in the home, you definitely should fix it and keep those receipts. We'll talk to you about that. I think, in the case of the gentleman with the furnace, we just added the price of the furnace on to the 9 purchase price. Obviously, you need a furnace in the winter. MR. SOSNOSKI: I'm not a rich person. So a lot of my work is sweat equity. If I fix something that's got to be fixed, do I take the market value? MRs. KoLATA: No. You could take the receipts for the materials you use, but all of us who do home repair, we don't get credit for it. -13- South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) a. continued... MR. SOSNOSKI: I live in the 700 block of Wenger. Could I go out and get my own appraisal? MRS. KOLATA: Yes. MR. SOSNOSKI: How about the money it costs for that, to get a legitimate one? MRS. KOLATA: I'm not sure. I don't think so. Usually we tell people to wait until they get our offer before they pay money for an appraisal. Because if we're not far apart, it may not be necessary. MR. SOSNOSKI: Can you give us a better idea IL when you're going to get to the 700 block? Am I looking at trying to find a house next September? Next May? MRS. KOLATA: At this point I can't. It's a budgetary issue. We can't afford to send all of the purchase offers at the same time. If you all accept and we pay relocation benefits, we wouldn't have enough money. That's why we're going to do it in phases. I think we'll do some the first half of the year. We are going to start with that area north of Keasey up to Sample. (Someone): In the dead of winter. MRS. KOLATA: There's a 90 day notice to vacate. We would not force anyone out in less than 90 days. That's after the 30 days. You're talking a minimum of four months Ok s -14- y South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) a. continued... before anybody would have to move. What we have found is that there are a number of people who might want to sell their property —who have an idea, they accept the offer, they buy something else, and they go do it all very quickly. There are others that have more problems, whether it's making up their minds, financial, or whatever, and we work with them. We have a very good staff who will work with you individually to smooth it out. We won't throw you out on the street. MR. SOSNOSKI: My problem is, I'm not going to fight city hall. You want to come through and buy the place, fine. Would you go out and buy a house within two months? I don't know about you, but I took a lot longer than that to buy this house. What you're saying is that you're going to give me an offer that tells me what I can spend and then I've got thirty days to find something. MRS. KOLATA: No, we Dally aren't saying that. MR. SOSNOSKI: You said that I have to accept or reject or make a counter offer in thirty days. MRs. KoLATA: I said if we are working with you, we don't go to court right away. We really don't. -15- South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) a. continued... MR. SOSNOSKI: So I don't have to accept, reject, or make a counter offer within thirty days. MRS. KOLATA: You need to be talking to us and we need to be communicating. What happens is that we need to know what you are looking for, housing -wise. We know what you own. Where are you looking, what are you trying to find? We can help you find and locate it. We've had folks who've had no cars and we've driven them out and shown them houses. We've made appointments with real estate agents to show houses. We've helped people get home repairs done. We've taken them to social service agencies when they've needed it. Our staff will do just about anything it takes to help you get relocated in a smooth manner. It does not take thirty days. It takes more than thirty days. The people who do it entirely on their own are the exception. We're used to dealing with folks. Gabriel and the other staff always attend the Southeast Quality of Life meetings. As we get further into the year, they may be able to give you a better idea of when your purchase offer will be coming. We're looking at trying to move some of the houses that are in good condition. As was pointed out, some of them are in very good shape. Maybe there's someone here who likes their house and maybe we can move that house a couple of blocks further south and move them back into it. Or maybe AdW %W (-16- South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSPUSS (Cont.) a. continued... there's a tenant who would like to own a home. We have found that sometimes tenants become home owners because they can use their rental assistance money as down payment assistance. They end up in a home ownership situation where they are actually paying less for a mortgage and taxes than they were for rent. We will work with everybody carefully and individually. If you say it's going to take you a few months to find a home, then well work with you for a few months. You might go out the next day and find just the right one. AIM MR. SOSNOSKI: I bought the house at a low price because it was in such bad shape. Over the years I've improved it and, hopefully, increased the value of it. I was hoping to stay there. The improvements I've made are not half -way improvements. If I can get the money back out of the house, fine. But if I can't find another house that's decent... I'll spend the money on my own to get someone to appraise it. JULIA NABAA: I want to back up. Not about pricing or anything like that. But, do I understand that the Redevelopment plans are sort of vague, they're not yet finished? MRS. KOLATA: They are not 100 % definite. One of the things that we want in here is a new park. We are working with a committee from Southeast Quality of Life and part of the planning committee and the -17- South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) a. continued... land use task force to have them tell us what kind of park the neighborhood wants. We're waiting to hear back from the planning committee and the land use committee as to exactly what the park should be, where it should be, what size it should be. We've said it should be at least the size of Dean Johnson Park. There aren't too many places in the area it can go. It will go in the center along Wenger and Keasey. Ms. NABAA: I guess what I'm missing here is why the action in the beginning. What's ArNw the rationale? MRS. KOLATA: The rationale is to redevelop the area because the Commission previously found that the area is what is technically called "slum and blight." Because of the I existing conditions in the neighborhood or f the area as a whole, their actions are necessary and this is one of the actions that will be taken. Ms. NABAA: What conditions are present? MRS. KOLATA: There's a variety of things. Not every property within the neighborhood or within the area is blighted or a slum. But when you look at the area as a whole, when you look at the percentage of land that is vacant, that used to have housing, that is now vacant land, and you look at the overall condition of homes, there are more homes in deteriorated condition than there are C -18- South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) a. continued... homes in good condition, and when you look at the overall occupancy patterns, vacancy patterns throughout the neighborhood, it was based on those types of issues that the Commission determined the area to be a redevelopment area. MS. NABAA: You keep talking about a park. I guess the people that are going to make a decision about a park —why be concerned about a park if you aren't even going to have houses there? Some of your rationale just doesn't make sense. MR. NABAA: What I was going to add to that, normally, in any residential ILcommunity, people feel that those additional things add to the residency of the community. From what you're telling me, all the residents are being moved out of here and what's going to be brought in here is —if you're going to build those types of units that South Bend Heritage is doing and what I'm seeing in back of me on the other side of Sample... MRS. KoLATA: Excuse me, ma'am, did you want to make a comment? (Someone was leaving the room.) (That someone): Yes, I have to go to an appointment. I don't have any house on the land. It's just land. Is it going to be the same amount of time as for people who have houses? -19- South Bend Redevelopment Commission rescheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) a. continued... MRS. xoLATA: Yes. we would send a purchase offer and then negotiate the price with you. Obviously, if you have nothing on the land, you're not eligible for relocation. But we would negotiate the purchase price. (That someone): That's what I wanted to know. MR. NABAA: The only thing I'm saying: you've got people who have worked hard for a lot of those homes along there. I travel in and around that area, too. Few homes that you do have, some of them are landlord- owned. And then some of the people are just poor —they don't have the means to refurbish the houses. Most homes over a given period of time, if they are kept up, last a hundred two hundred P� years, years. The problem is, you're coming in and completely demolish an area, a residential area, destabilize the community, then you're going to set... But the Commission doesn't live in the area. They're not part of the area. The park, the ideas and everything, they don't fit. That's what I'm saying. Not unless you're going to redevelop an entirely new situation for new people coming in that area. And the people who live in the area are going to be destabilized. That's the only question I have. Because I moved into the area and, yes, there are vacant homes. Why not take the lots and build homes on them? APk -20- South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) a. continued... MRS. KOLATA: The determination that was made when this was originally declared a redevelopment area was to draw the Southeast Neighborhood into three sections. The first section stops at the alley between Pennsylvania and Broadway. That is the area that is designated for redevelopment, because that is the area where most of the vacant lots were, that's where the highest percentage of deteriorated homes were, and that was the area that was determined to be cleared and made available to start anew. From the blue line (on the map) south to Dubail is the area that we're talking about revitalization. There are strong homes there, strong streets, enough houses on the IL streets. The idea is to strengthen that part of the neighborhood and not have it deteriorate the way the area to the north deteriorated. The third portion of the Southeast Neighborhood is between Dubail and Ewing. Residentially, that is the strongest part of the neighborhood. We intend to make some housing programs available there. We have been working with the neighborhood organization. Any of you who want to be involved on the planning committees, I know you've had the opportunity to join. There are a series of committees and Southeast Quality of Life would love to have you be there and have your input. The idea of having the park in this general area is because we are purchasing and eliminating Dean Johnson LeL-21- South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) a. continued... Park. The Southeast Neighborhood organization and the Park Department, and Redevelopment wanted to replace the park. The planning committee is deciding on what facilities they want in the park, how they want the park to be used. It will back up onto residential properties on Broadway. It will serve the neighborhood. You are right, we do expect new residential development that South Bend Heritage is building. That will be next to it. Obviously, no one wants to build a park that will just be empty land. That's why we're waiting to design the park until we have some more information, although they are getting closer on that. So, it's part of an overall strategy. This was the area that was in the worst condition and it was just felt that without some action on the public's part, private investment would not take place. It was unrealistic to expect someone to invest private money in there without a drastic step to redevelop the area. That was the intent of the plan and what we're doing here today. MR. JON sMrrH: Well, all I want to know, is for them to send me a price about what they're going to offer me for my home because I've already found me another home. I'm getting clean out of the neighborhood. I'm getting too old to be buying another old home and then, two or three years later, I have to repair everything in it, just like I've done in the one I've already got. I got about $25,000 - $26,000 tied up in it already. And I had to put that sw -22- South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) a. continued... in it to try to live in it. That isn't including what I paid for it. Plus I've got two extra lots in there with it, that go with it. MRS. KOLATA: probably what you should do is talk to Gabriel after the meeting. He can give you an idea on... MR. SMITH: I have talked to him before. Plus, I have talked to him (John Stark). And I told him what I had found and what I was going to get. That's the only thing I'm going to say. That's the only thing I'm waiting on - to find out how much you're going to offer me for it. MRS. KOLATA: Where is your property? MR. SMITH: 629 E. Keasey. MRS. KOLATA: Is that on the north or south side of the street? MR. SMITH: That's on the north side. MRS. KOLATA: Then you'll probably be getting a purchase offer within the next thirty days. MR. sMrrH: OK. In the meantime, I wanted to give John and Gabe these papers. This is what he's got to deal with. MRS. KOLATA: OK. Can we keep these? t*00/ -23- South Bend Redevelopment Commission e*Rescheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) a. continued... MR. SMITH: Yes. That's what they're for —for me to give to you. Thank you very much. Mr. Faccenda asked if there was anyone else who wished to speak regarding Resolution No. 1305. There was no one else who wished to speak. ME Faccenda closed the public hearing. Ms. Auburn reassured the public who were present that the Commission works with the staff and is familiar with some of the problems that come up. The Commission encourages the staff to work with each person individually to resolve problems. The Commission recognizes that the process j is difficult and wants to make it as smooth as possible. Mr. Faccenda noted that the purchase offer sounds very formal. It is required to be that way, but each property owner's needs are addressed carefully and individually. b. Commission approval requested for Resolution No. 1305. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1305 amending the Sample -Ewing Development Area Development Plan. AW / -24- COMMISSION APPROVED RESOLUTION NO. 1305 AMENDING THE SAMPLE -EWING DEVELOPMENT AREA DEVELOPMENT PLAN South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 5. OLD BUSINESS a. Commission approval requested for Resolution No. 1310 determining to pay certain expenses incurred for local public improvements in or serving the Airport Economic Development Area Allocation Area No. 1 ( "Allocation Area No. 1 ") from the Airport Economic Development Area Allocation Area No. 1 Special Fund (the "Allocation Fund ") Mrs. Kolata explained the Resolution No. 1310 states the Commission's intent to appropriate $200,000 of tax increment funds from the Airport area for public improvements in the area. It sets a public hearing for February 3, 1995 at 10:00 a.m. Alk Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission approved Resolution No. 1310 determining to pay certain expenses incurred for local public improvements in or serving the Airport Economic Development Area Allocation Area No. 1 ( "Allocation Area No. 1") from the Airport Economic Development Area Allocation Area No. 1 Special Fund (the "Allocation Fund ") 6. NEW BUSINESS (Cont.) C. Public Hearing on Resolution No. 1307 a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. (Sample -Ewing Development Area) Mrs. Kolata asked that the following items be entered into the record: 1) proof of -25- COMMISSION APPROVED RESOLUTION NO. 1310 DETERMINING TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE AIRPORT ECONOMIC DEVELOPMENT AREA ALLOCATION AREA NO. 1 ( "ALLOCATION AREA NO. I") FROM THE AIRPORT ECONOMIC DEVELOPMENT AREA ALLOCATION AREA NO. 1 SPECIAL FUND (THE "ALLOCATION FUND ") South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 a ° 6. NEW BUSEWSS (Cont.) C. continued... publication from the South Bend Tribune that the Notice of Hearing was published in that daily newspaper on December 23, 1994; and 2) proof of publication from the Tri- County News that the Notice of Hearing was published in that weekly newspaper on December 23, 1994. Mr. Faccenda asked if there was any objection to entering the items into the record. There was no objection and the items were so entered. Mrs. Kolata explained that Resolution AWk No. 1307 appropriates $905,000 of tax increment funds for expenditures within the Sample -Ewing Development Area.. This is part of the money that will be used to purchase the properties discussed already today and make relocation payments for those relocations, as well as for public improvements in the area. Mr. Faccenda opened the Public Hearing for anyone who wished to speak. There was no one who wished to speak regarding Resolution No. 1307. Mr. Faccenda closed the Public Hearing. d. Commission approval requested for Resolution No. 1307. Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Commission approved Resolution No. 1307. -26- PUBLIC HEARING ON RESOLUTION NO. 1307, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION COMMISSION APPROVED RESOLUTION NO. 1307 South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 n 1 6. NEW BUSINESS (Cont.) e. Public Hearing on Resolution No. 1309 a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. (South Bend Central Development Area) Mrs. Kolata asked that the following items be entered into the record: 1) an affidavit from the South Bend Tribune stating that the Notice of Public Hearing was published in that daily newspaper on December 23, 1994; and 2) proof of publication from the Tri- County News that the Notice of Hearing was published in that weekly newspaper on December 23, 1994. I Mr. Faccenda asked if there was any objection to entering the items into the record. There was no objection and the items were so entered. Mrs. Kolata explained that the Commission approved Resolution No. 1308 at its December 16 meeting indicating that it intended to appropriate $250,000 of tax increment funds for expenditures within the South Bend Central Development Area. Resolution No. 1309 revises the appropriation amount downward to $150,000. The primary use of these funds will be to cover operating costs for the St. Joseph/Wayne Street Parking Facility and the Palais Royale building for 1995. It will also be used for public improvements in the area. -27- South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) e. continued... Mr. Faccenda opened the Public Hearing for anyone who wished to speak. There was no one who wished to speak regarding Resolution No. 1309. Mr. Faccenda closed the Public Hearing. f. Commission approval requested for Resolution No. 1309. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1309. g. Commission approval requested for Resolution No. 1313 approving an application for real property tax deduction for property located at 2422 Viridian Drive in the Airport Economic Development Area. ( John and Lai Lo Gould dba: Commonwealth Corp.) Mr. Beitzinger read the staff report on the project. John and Lai Lo Gould own Viridian Office Park, located just off Bendix Drive between Lathrop Street and Boland Drive. Their project calls for the construction of four 2,500 square foot Class A office buildings in the Viridian Office Park. This will comprise Phase II and Phase III of the office development. (Phase I is an existing 12,000 square foot building). When Phase II and Phase III are completed, the petitioner intends to add several other office buildings as Phase IV and Phase V to complete the park. The petitioner has indicated that the project is necessary to AP- -28- PUBLIC HEARING ON RESOLUTION NO. 1309, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION COMMISSION APPROVED RESOLUTION NO. 1309 South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) g. continued... meet the growing demands of current tenants and to attract new tenants. The total cost of this project is estimated at $700,000. The project is not expected to create any new jobs; however, the petitioner is expecting to bring in between 10 and 20 new (to this area) jobs resulting from the companies that are currently pre- leasing the new buildings. John and Lai Lo Gould have not been granted any previous tax abatements. The property is properly zoned for the proposed use. The property is not located in an area presently designated as a 'Pax Abatement Impact Area, but is located in the Airport Economic Development Area, a tax incremental financing allocation area. A review of the tax abatement ordinance finds that the petitioner does not meet the qualifications for real property tax abatement due to its location. If the petitioner's property were located in a designated area, the project would qualify for three years of real property abatement. The petitioner is requesting special consideration for the abatement because of the following things which have made development of the property difficult: 1) Viridian Drive was originally planned to be connected with the northern portion of Viridian via a bridge. However, the connecting of the two drives has been put on permanent hold. This results in a dead end street with limited access to the petitioner's AIK -29- South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) g. continued... property. 2) The area surrounding the office park is 50 % ravine and is a favorite of moto -cross bikes and four wheel drive vehicles. This has resulted in problems of trespassing and noise. 3) There is a parcel of land directly adjacent to the Viridan Office park which has been the center of complaints due to its appearance. These factors have combined to create the difficult position of developing this property. A review of the cost of the proposed abatement shows that, with a project cost of $700,000 and a constant tax rate, the project would generate approximately $104,047 in new taxes over the three year period. With abatement the project will generate approximately $35,029. Therefore, the cost of the abatement would be approximately $69,018 over the three year period. Mr. Gould indicated that he thought it was in the City's best interest to see that property developed to a better use than it is presently. He bought it through bankruptcy from Intracomp. He sees his project as a catalyst, not a competitor of, the Blackthorn market. He will be serve the small business that needs 1,000 to 2,000 square feet of class A office space. Mrs. Kolata noted that the staff supports this request for tax abatement. Mr. Gould has made improvements already to the property and the improvements have improved the -30- South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) g. continued... appearance of the intersection of Bendix and Viridian. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1313 approving an application for real property tax deduction for property located at 2422 Viridian Drive. (John and Lai Lo Gould dba: Commonwealth Corporation) h. Commission approval requested for Resolution No. 1314 accepting the transfer of real property from St. Joseph County, Indiana. Ms. Manier explained that she has sent a letter to the St. Joseph County Commissioners asking that they transfer three properties to the Commission. The County has not yet acted on that request. In anticipation of their approval of that request, we would like to accept that transfer. Two are properties that the County has acquired through tax sale and we are requesting that they be transferred for $1.00 each. The third property is the Corridor Properties building that the Commission last year purchased the right of redemption from the former owner and is offering to pay the County $5,000 in lieu of all the taxes that were left unpaid at the time of tax sale. Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission approved Resolution No. 1314 �.> -31- COMMISSION APPROVED RESOLUTION NO. 1313 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2422 VIRIDIAN DRIVE. (JOHN AND LAI LO GOULD DBA: COMMONWEALTH CORPORATION) COMMISSION APPROVED RESOLUTION NO. 1314 ACCEPTING THE TRANSFER OF REAL PROPERTY FROM ST. JOSEPH COUNTY, INDIANA South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) h. continued... accepting the transfer of real property from St. Joseph County, Indiana. i. Commission approval requested for Resolution No. 1315 approving an application for real property tax deduction for property known as Lot 16 and Lot 17 in the Toll Road Industrial Park portion of the Airport Economic Development Area. (Busk Brothers Furniture) Mr. Beitzinger read the staff report on the E project. Stephen E. and Susan Busk are owners of Busk Brothers Furniture. Their Aft project calls for the construction of a 59,000 ILsquare foot warehouse on lots 16 and 17 in the Toll Road Industrial Park. The new building will serve as the primary warehousing location for Busk Brothers Furniture outlets. The building will also house the company's corporate offices and the service department. The new building is necessary to adequately house the inventory needed to supply the retail outlets and combine offices which are currently at two different locations. The total cost of the project is estimated at $1,115,000. The project will create four permanent new jobs within the first year, representing an annual payroll of around $90,000 (including fringe benefits) and will maintain forty existing permanent full-time and two permanent part-time jobs, representing an annual payroll of $683,000. r -32- South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 L 6. NEW BUSINESS (Cont.) i. continued... Busk Brothers has not been granted any previous tax 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 Airport Economic Development Area, which is a tax incremental financing allocation area. The project meets the qualifications for six years of real property tax abatement under the tax abatement ordinance. A review of the cost of the proposed abatement shows that, with a project cost of $1,115,000 and a constant tax rate, the C L project would generate approximately $331,463 in new taxes over six years without abatement. With abatement, the project will generate approximately $137,005. Therefore, the cost of the abatement is approximately $194,458 over the six year period. Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Commission approved Resolution No. 1315 approving an application for real property tax deduction for property known as Lot 16 and Lot 17 in the Toll Road Industrial Park portion of the Airport Economic Development Area. (Busk Brothers Furniture) j. Commission approval requested for Resolution No. 1316 setting the Fair Reuse Value of Land for Parcels No. AWN %W Ll� -33- COMMISSION APPROVED RESOLUTION NO. 1315 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY KNOWN AS LOT 16 AND LOT 17 IN THE TOLL ROAD INDUSTRIAL PARK PORTION OF THE AIRPORT ECONOMIC DEVELOPMENT AREA. (BUSK BROTHERS FURNITURE) South Bend Redevelopment Commission C escheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) j. continued... M19 -1, M19 -5, and M19 -6 in the South Bend Central Development Area. (Dreisbach Property) Mrs. Kolata explained that items 6.j, 6.k., and 6.1. are all related. They pertain to putting the Dreisbach property up for sale. Resolution No. 1316 sets the Fair Reuse Value of Land for the property. The bid specifications and design guidelines outline our requirements for reuse of the property. and item 6.1. authorizes publication of our intent to sell the property and sets the time for receipt of bids as 10:00 a.m. , February 3, 1995. Mrs. Kolata noted that the Commission received the Dreisbach building as a donation the end of 1993. The resolution setting the minimum offering price anticipates that a bidder could bid on either a portion of the property or the entire property. Rather than having a sales price for the property, the resolution sets a lease price. Fart of our acceptance of the donation of the property was that we would not sell it for a minimum of two years. But we do have the right to lease it. We are leaving it up to potential bidders to decide if they want a 25- year lease or whether they want an 18 -month lease. The design considerations require the developer to reuse the existing main structure for commercial development and that the architectural design of the -34- South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) j. continued... development should be sensitive to the height, layout and materials of surrounding structures. Mrs. Kolata noted that there are two smaller structures on the property. At the December 16 meeting, the Commission agreed to sell one of those structures. We will be responsible for the second structure if we don't get a buyer for that. Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission approved Resolution No. 1316 setting the Fair Reuse Value of Land for WIL Parcels No. M19 -1, M19 -5, and M19 -6 in the South Bend Central Development Area. (Driesbach Property) k. Commission approval requested for Bid Specifications and Design Considerations for Parcels No. M19 -1, M19 -5, and M19 -6 in the South Bend Central Development Area. Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission approved the Bid Specifications and Design Considerations for Parcels No. M19 -1, M19 -5, and M19 -6 in the South Bend Central Development Area. 1. Commission authorization requested to publish Notice of Intended Sale of Land with publication dates of January 13 and January 20, 1995 and receipt of bids to be -35- COMMISSION APPROVED RESOLUTION NO. 1316 SETTING THE FAIR REUSE VALUE OF LAND FOR PARCELS NO. M19 -1, M19 -5, AND M19 -6 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (DRIESBACH PROPERTY) COMMISSION APPROVED THE BID SPECIFICATIONS AND DESIGN CONSIDERATIONS FOR PARCELS NO. M19 -1, M19 -5, AND M19 -6 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA r South Bend Redevelopment Commission Cescheduled Regular Meeting - January 4, 1995 6. NEW BUSINESS (Cont.) 1. continued... 10:00 a.m.February 3, 1995. (Parcels No. M19 -1, M19 -5, and M19 -6) Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission authorized the publication of the Notice of Intended Sale of Land with publication dates of January 13 and January 20, 1995 and receipt of bids to be 10:00 a.m.February 3, 1995. (Parcels No. M19- 1, M19 -5, and M19 -6) m. Staff report on disposition of property in the South Bend Central Development Area. ILThere was no report. n. Staff report on disposition of property in s the Sample -Ewing Development Area. There was no report. o. Commission approval requested for Proposal from Grauvogel & Associates for Professional Services in the Sample -Ewing Development Area. Mrs. Kolata explained that we would like Grauvogel & Associates to determine whether there is asbestos present in a number of residential structures the Commission has acquired west of Fellows Street. They will determine how much asbestos is present and will write specifications for the removal of any -36- COMMISSION AUTHORIZED THE PUBLICATION OF THE NOTICE OF INTENDED SALE OF LAND WITH PUBLICATION DATES OF JANUARY 13 AND JANUARY 20, 1995 AND RECEIPT OF BIDS TO BE 10:00 A.M.FEBRUARY 3, 1995. (PARCELS NO. M19 -1, M19 -5, AND M19 -6) THERE WAS NO REPORT THERE WAS NO REPORT South Bend Redevelopment Commission ,escheduled Regular Meeting - January 4, 1995 6. NEW BUSINFSS (Cont.) o. continued... asbestos. This is in preparation for demolishing the structures. The proposed fee is at hourly rates, estimated $9,390, but will not exceed $13,470. Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Commission approved the proposal from Grauvogel & Associates for professional services in the Sample -Ewing Development Area. 7. PROGRESS REPORTS Mrs. Kolata acknowledged the death of Jeanne .; Derbeck, former South Bend Tribune reporter who covered the Redevelopment Commission for a number of years. She was a very nice, unique s individual and we are sorry to hear of her death. Mrs. Kolata stated that 1994 had been a very busy year and summarized some of the accomplishments of the Commission in 1994: Completed the Stephenson Mill project with 39 apartments, including the public improvements at the site. Nearly completed the Central High School Apartments with 107 apartments, including the public improvements for that site. Worked with the Mayor's office and Controller's office to bring about the financing for the College Football Hall of Fame. -37- COMMISSION APPROVED THE PROPOSAL FROM GRAUVOGEL & ASSOCIATES FOR PROFESSIONAL SERVICES IN THE SAMPLE - EWING DEVELOPMENT AREA PROGRESS REPORTS South Bend Redevelopment Commission scheduled Regular Meeting - January 4, 1995 g 5 7. PROGRESS REPORTS (Cont.) Worked with the Entertainment District Board to secure funding for the Morns - Palais renovation and that is going well. We expect there to be a public fund drive yet this year. Entered into a marketing agreement with Coldwell Banker to market our land in the Studebaker Corridor, the downtown, and the Airport 2010 area. Worked with the Housing Development Corporation to bring about the rehabilitation of the final three houses we owned in Monroe Park. Completed the design work on the extension of the walkway along the river near Madison Center. Developed on a reuse strategy for the Dreisbach property. Worked on updating our strategy for the Central Business District and East Bank. Developed the walkway and made alley improvements adjacent to the new Macri Deli. Completed construction of Blackthorn Golf Course and negotiated a management agreement. Completed Phase II of Nimtz Parkway and completed the landscaping of Nimtz Parkway. Extended Richardson Drive to the east to open up sites in the Toll Road Industrial Park. Sold five parcels of land in the Toll Road Industrial Park to Tech Data, Crystal Mountain AP- %W -38- South Bend Redevelopment Commission Rescheduled Regular Meeting - January 4, 1995 7. PROGRESS REPORTS (Cont.) Water, Midwest Embroidery, Apollo Precision Machinery, and the Tech Data expansion. Marketed land in the Blackthorn Corporate Park and hope to have a couple of offers in on that land very soon. Designed improvements for the Nimtz - Bendix intersection. Work began on that, but has been put on hold until spring. Acquired a 16 -acre parcel of land from the Airport Authority and are working with a prospect on that land. Completed acquisition of Phase I (west of Fellows AFN Street) in the Sample -Ewing Development Area. Completed the pre- development activities east of Fellows in the Sample -Ewing Development Area. Sold land to Richard Allen for a 13,000 square foot, multi -use building at Broadway and Main. Sold land to Schafer Gear and their building construction is complete. Sold land to the Fire Fighters Federal Credit Union and sold the former Policemen's Federal Credit Union building to them to be moved to that site. Had viaducts painted along Michigan, Lafayette, and Main Streets. I Continued to do all the analysis on our tax increment finance numbers on a semi - annual basis. ' -39- South Bend Redevelopment Commission T . escheduled d Regular Meeting - January 4, 1995 7. PROGRESS REPORTS (Cont.) Updated a computer inventory of our Redevelopment -owned land. Provided relocation and acquisition services to other public agencies on a case -by -case basis. 8. NEXT COMNUSSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for January 20, 1995 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Ms. Auburn made a motion that the meeting be adjourned. Mr. Donoho seconded the motion and the meeting was adjourned at 11:18 a.m. Philip I F" a i sident NEXT COMMISSION MEETING ADJOURNMENT Ann t Kolata, Director