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HomeMy WebLinkAboutRM 02-17-95SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING February 17, 1995 10:00 a.m. Presiding: Philip J. Faccenda President 1. ROLL CALL 1308 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana Members Present: Mr. Philip J. Faccenda, President Ms. Paula N. Auburn, Vice - President Mr. Robert W. Hunt, Secretary Mr. William P. Hojnacki Members Absent: Legal Counsel: Redevelopment Staff: Business Assistanct Staff: Media: Others: 2. APPROVAL OF MINUTES Mr. Michael Donoho Mr. Robert Rosenfeld Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Michael Beitzinger, Economic Dev. Specialist Mr. Thom Howell, U -93 Mr. Donald Porter, South Bend Tribune Mr. Carter Wolf, Center City Associates a. Approval of Minutes of the Regular Meeting of Friday, February 3, 1995. Upon a motion by Mr. Hunt, seconded by Ms. Auburn and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, February 3, 1995. c ,. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, FEBRUARY 3, 1995 South Bend Redevelopment Commission Regular Meeting - February 17, 1995 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted February 17, 1995, for approval: ADMIN 1995 (212 The Prudential Joseph C. Dunfee Realtors $360.00 Dept. of Engineering $334.16 Peirce & Associates $250.00 Business Systems $4.17 United Parcel Service $9.00 Gabriel Okafor $40.00 Coldwell Banker $2,040.00 Sprint Cellular $184.95 The Prudential Joseph C. Dunfee Realtors $121.90 S.B.C.D.A. TIF REVENUE ACCOUNT (3041 Transfer to Fund 420 $968,336.15 S.B.C.D.A. TTF RESERVE ACCOUNT (305) T3ransfer to Fund 420 $12,277.12 SAMPLE- EWING DEVELOPMENT AREA (414 South Bend Water Works $75.00 Specialty Systems of South Bend, Inc. $11,817.00 Tbska & Associates, Inc. $1,229.51 St. Joseph County Treasurer $1,202.85 Juanita Craft and May, Oberfell and Lorber $1,500.00 Tii County News $207.90 Camiros $287.50 York Title & Escrow Inc. $1,110.00 Tlroyer Group, Inc. $2,466.00 Indiana Michigan Power Co. $477.39 Frank T. & Justine H. Polack $3M2.00 Lucy Ann Harris $17,921.23 Evelyn Jelks $19,217.89 George Lee & Emma Frison $28,359.34 AIRPORT T.I.F. ACCOUNT (324) North American Golf $6,000.00 North American Golf $6,000.00 IL South Bend Redevelopment Commission Regular Meeting - February 17, 1995 3. APPROVAL OF CLAIMS (Cont.) S.B. C. D. A. T.I.F. GENERAL ACCOUNT (4201 Indiana Michigan Power Co. Feather Dusters, Inc. N.I.P.S.C.O. Ameritech Gibson Insurance Agency, Inc. Real Estate Management Corp. Transfer to Fund 415 Leedy /Cripe Architects Howard Park Hardware Upon a motion by Ms. Auburn, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Claims submitted February 17, 1995. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS Mrs. Kolata asked permission to add item 6.h. to the agenda. There was no objection and the item was added. a. Commission approval requested for Resolution No. 1319 determining to pay certain expenses incurred for local public improvements in or serving the Sample - Ewing Allocation Area (South Bend Allocation Area No. 8) from the Sample - Ewing Allocation Area (South Bend Allocation Area No. 8) Special Fund. c $$430.46 $15.00 $1,162.64 $46.30 $223.00 $686.80 $206,911.13 $1,701.99 $25.27 COMMISSION APPROVED THE CLAIMS SUBMITTED FEBRUARY 17, 1995 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - February 17, 1995 6. NEW BUSEWSS (Cont.) a. continued... Mrs. Kolata explained that Resolution No. 1319 indicates the Commission's intent to appropriate $677,932 in the Sample -Ewing TTF area, setting a public hearing on this appropriation for Friday, March 3, 1995 at 10:00 a.m. These TIF funds were remaining at the end of 1994 and not otherwise encumbered or previously appropriated. The funds will be used for acquisition, relocation, demolition, and public improvements in the Sample -Ewing Development Area. Apk Upon a motion by Mr. Hojnacki, seconded by Ms. Auburn and unanimously carried, the Commission adopted Resolution No. 1319 determining to pay certain expenses incurred for local public improvements in or serving the Sample - Ewing Allocation Area (South Bend Allocation Area No. 8) from the Sample - Ewing Allocation Area (South Bend Allocation Area No. 8) Special Fund. b. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 1210 N. Olive. (Albert and Sue Smith) Mrs. Kolata noted that the Loan is in the amount of $8,800 at 6 % interest for 8 years with monthly payments of $115.75. The Grant is in the amount of $3,691.05. c COMMISSION ADOPTED RESOLUTION NO. 1319 DETERMINING TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE SAMPLE -EWING ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO 8) FROM THE SAMPLE -EWING ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 8) SPECIAL FUND South Bend Redevelopment Commission Regular Meeting - February 17, 1995 6. NEW BUSINESS (Cont.) b. continued... Upon a motion by Ms. Auburn, seconded by Mr. Hcjnacki and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property located at 1210 N. Olive. (Albert and Sue Smith) C. Commission approval requested for Resolution No. 1321 approving an application for personal property tax deduction for property located at 3636 Gagnon in the Airport Economic Development Area. (General Machine & Saw Company of Indiana) Mr. Beitzinger read the staff report on the project. General Machine & Saw Company of Indiana is a new company to South Bend and to the State of Indiana. Like its parent company, based in Marion, Ohio, General Machine & Saw Company will be a supplier of cut -to -order steel bars which are used in the manufacturing process of heavy duty equipment. The steel bars range in size and diameter and are cut to specific lengths or weights. The bars are then delivered to their customers to forge parts for heavy duty equipment, including transmissions for large trucks and earth moving equipment. General Machine & Saw intends to purchase and install $350,000 in new equipment, including heavy duty band saws, automatic computer controlled scales, fork lifts, welders, drill presses and CNC lathes. c -5- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 1210 N. OLIVE. (ALBERT AND SUE SMITH) South Bend Redevelopment Commission Regular Meeting - February 17, 1995 6. NEW BUSEWSS (Cont.) C. continued... It is estimated that this project will create between seven and ten new permanent full- time jobs in the first year, representing an annual payroll of approximately $151,000. Although the petitioner is conservative in its job creation estimates, they are hopeful that as many as sixteen to twenty jobs will be created within the next two years. A review of the tax abatement application shows that General Machine & Saw has not been granted any previous tax abatement. 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 qualifies for five years of personal property tax abatement under the tax abatement ordinance. A review of the cost of the abatement shows that, assuming an equipment cost of $350,000 and a constant tax rate, the project would generate approximately $33,641 in new taxes without abatement. With abatement, the project will generate approximately $5,965 in new taxes. Therefore, the cost of the abatement, over the five year period, will be approximately $27,676. Mr. Beitzinger noted that this company is a spin -off business of Eaton Corporation CW -6- South Bend Redevelopment Commission Regular Meeting - February 17, 1995 6. NEW BUSINESS (Cont.) C. continued... which is located in the Airport Industrial Park. They have entered into a long term contract to be the exclusive supplier of these steel bars for the Eaton Corporation. To save on delivery cost, General Machine & Saw decided to locate in South Bend. Mr. Faccenda noted that this is new machinery to the State of Indiana, so that any revenues generated will be entirely new revenues. Mr. Hojnacki asked about the impact of tax abatement on local revenues. Mr. Beitzinger responded that, in this case, there are no taxes being paid in South Bend by this business at the present time. The taxes on the building and the land will remain the same. General Machine & Saw will pay no taxes on the machinery the first year and gradually more until year five when they will pay 50 % of the taxes on the machinery. The sixth year they will pay full personal property taxes. Mrs. Kolata responded to the issue of tax abatement's impact on the other jurisdictions. Since the total amount of taxes collected cannot rise by more than 5 % each year, there is no less revenue for the other jurisdictions. Upon a motion by Mr. Hojnacki, seconded by Mr. Hunt and unanimously carried, the Commission approved Resolution No. 1321 approving an application for personal c -7- COMMISSION APPROVED RESOLUTION NO. 1321 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION. (GENERAL MACHINE & SAW COMPANY OF INDIANA) South Bend Redevelopment Commission Regular Meeting - February 17, 1995 6. NEW BUSINESS (Cont.) C. continued... property tax deduction. (General Machine & Saw Company of Indiana) d. Commission approval requested for Resolution No. 1322 transferring real property to the City of South Bend. Mrs. Kolata explained that the Northern Indiana Historical Society wishes to obtain land that the Commission has recently acquired on Chapin Street in order to construct a collection storage building. This resolution transfers the property owned by the Commission to the City of South Bend through its Board of Public Works who will then transfer it to the Northern Indiana Historical Society. Mrs. Kolata pointed out that there is confusion over the legal description in Resolution No. 1322. It includes lots 7, 8, and 9 and it is her understanding that the Commission only owns lots 7, 8, and a part of 9. The County owns the remainder of lot 9. Mr. Rosenfeld suggested that the Commission transfer its interests in all three lots to the Historical Society. Upon a motion by Ms. Auburn, seconded by COMMISSION APPROVED RESOLUTION Mr. Hunt and unanimously carried, the NO. 1322 TRANSFERRING THE Commission approved Resolution No. 1322 COMMISSION'S INTEREST IN REAL transferring the Commission's interest in PROPERTY TO THE CITY OF SOUTH BEND real property to the City of South Bend. c -8- South Bend Redevelopment Commission Regular Meeting - February 17, 1995 6. NEW BUSINESS (Cont.) e. Commission approval requested for Proposal from Grauvogel & Associates for Professional Services in the Sample -Ewing Development Area. Mrs. Kolata explained that we are acquiring properties east of Fellows which have buildings on them. This proposal is for asbestos surveys and the writing of demolition specifications. The total cost will not exceed $9,775. Upon a motion by Ms. Auburn, seconded by Mr. Hunt and unanimously carried, the Commission accepted the proposal from Grauvogel & Associates for Professional Services in the Sample -Ewing Development Area. L Staff report on acquisition of property in the Sample -Ewing Development Area. There was no report. g. Staff report on disposition of property in the Airport Economic Development Area. There was no report. h. Commission approval requested for Proposal for Professional Services in the Airport Economic Development Area. Mrs. Kolata explained that we have solicited two proposals for survey work related to filing a minor subdivision for part of Lot 4 in the Blackthorn Office Park. Part of the process of selling the land to Sullivan C, COMMISSION ACCEPTED THE PROPOSAL FROM GRAUVOGEL & ASSOCIATES FOR PROFESSIONAL SERVICES IN THE SAMPLE - EWING DEVELOPMENT AREA THERE WAS NO REPORT THERE WAS NO REPORT South Bend Redevelopment Commission Regular Meeting - February 17, 1995 6. NEW BUSINESS (Cont.) h. continued... Advertising, which the Commission approved earlier this year, requires that we file a minor subdivision. The proposal from Peirce & Associates will do the survey work and platting for $1250 plus the subdivision submittal fee of $118 for a total of $1368. Fisher Surveying and Engineering proposes to do the minor subdivision for $900 plus the filing fee for a total of $1,018. The staff recommends hiring Fisher Surveying and Engineering. Upon a motion by Mr. Hunt, seconded by Mr. Hojnacki and unanimously carried, the Commission accepted the proposal from Fisher Surveying and Engineering for surveying services in the Airport Economic Development Area. 7. PROGRESS REPORTS Ms. Auburn asked Mr. Hojnacki if he could explain the relationship between the need for the County Option Income Tax and the granting of tax abatements. Mr. Hojnacki responded that, as best he can figure, it is a wash. Nor do tax abatements affect the tax rate. Mrs. Kolata responded that tax abatement does not reduce any existing tax being paid for any current assessed value. The abatement is only on new development and is only a percentage of that. Because state law limits tax revenues to a yearly increase of no more than 5 %, new growth does not automatically result in more revenue. CW -10- COMMISSION ACCEPTED THE PROPOSAL FROM FISHER SURVEYING AND ENGINEERING FOR SURVEYING SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA PROGRESS REPORTS South Bend Redevelopment Commission Regular Meeting - February 17, 1995 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for March 3, 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. Hunt seconded the motion and the meeting was adjourned at 10:27 a.m. sident -11- NEXT COMMISSION MEETING ADJOURNMENT Ann E. Kola6, Director