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Home My WebLink AboutRM 07-21-95SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING July 21, 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 Members Absent: Mr. Michael Donoho Mr. William P. Hojnacki Legal Counsel: Mr. Richard A. Nussbaum III Redevelopment Staff: Mr. Jon R. Hunt, Executive Director Mrs. Cheryl Phipps, Recording Secretary Mr. James Riggs, Economic Dev. Specialist Mr. John Stark, Economic Dev. Specialist Ms. Joelle Webb, Secretary Business Assistance Staff: Mr. Michael Beitzinger, Economic Dev. Specialist Media: Mr. Thom Howell, U -93 Others: Mr. Carter Wolf, Center City Associates Mr. Tom Brademas Mr. Ernest Szarwark, Barnes & Thornburg 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday, July 7, 1995. Upon a motion by Ms. Auburn, seconded by Mr. Hunt and unanimously carried, the Commission approved the Minutes of the Regular Meeting of July 7, 1995. 1 COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF JULY 7, 1995 South Bend Redevelopment Commission Regular Meeting - July 21, 1995 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted July 21, 1995, for approval. ADMIN 1995 (212 Tri- County News $123.90 South Bend Tribune $78.84 Indiana Michigan Power Co. $6.65 ADT Security Systems, Inc. $1,136.88 Columbia Inn $196.30 Gene's Camera Store $21.28 Plastimatic Arts Corp. $30.40 Business Systems $64.40 REDEVELOPMENT DIST. BOND (GARAGE) (312) Lease rental - Parking garage $107,582.50 REDEVELOPMENT DIST. BOND 1990 (314) Lease rental - SBCDA Public Improvement Project $22,871.25 PALAIS ROYALE DEBT SVC (3281 Lease rental - Palais Royale $57,918.75 AIRPORT TIF REVENUE (324) Trost Plastics $3,750.00 South Bend Water Works $179.40 Reith Riley $163,049.00 SAMPLE- EWING DEVELOPMENT AREA (414 Indiana Michigan Power Co. $619.46 York Title & Escrow Service, Inc. $605.00 South Bend Water Works $300.00 Grauvogel & Associates $2,985.00 Peirce & Associates $1,563.00 Jack Ford $230.13 Inez King $104.00 Advanced Environmental Systems $5,673.40 Northern Indiana Public Service Co. $2.50 Hal & Flora Garber & York Title & Escrow Inc. $22,673.00 Hal & Flora Garber $950.00 2 South Bend Redevelopment Commission Regular Meeting - July 21, 1995 3. APPROVAL OF CLAIMS (Cont.) SAMPLE -SWING DEVELOPMENT AREA (414) Tri County News Petty Cash / Recording Fees McCloskey -Pitts & Associates, Inc. Wilbur & Essie Lacy & Betty Love Tom Harris S.B.C.D.A. T.I.F. GENERAL ACCOUNT (420) Rainbow International Carpet Feather Dusters, Inc. Superior Waste System Howard Park Hardware Circle Lumber Inc. Northern Indiana Public Service South Bend Water Works Real Estate Management Corp. Indiana Michigan Power Co. BLACKTHORN GOLF COURSE (619) North American Golf Inc. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. The Commission allowed Mr. Brademas to speak on downtown office space at this time. Mr. Brademas quoted some information provided in office market surveys compiled by the Department of Community and Economic Development in 1993 and 1994 which showed that downtown office buildings have had occupancy rates of 74 % to 84 % during those years. He 3 $40.60 $248.00 $5,550.00 $99.00 $1,550.00 $75.00 $15.00 $62.05 $7.79 $9.38 $8.03 $141.55 $456.02 $453.89 $6,694.10 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - July 21, 1995 Mr. Brademas' comments continued... questioned whether the Commission should support a private developer's construction of additional class A office space in the downtown by constructing a parking garage and pedestrian plaza at taxpayer expense, and by approving tax abatement for the project, when that office space would undermine the viability of existing downtown office buildings. He noted that Mishawaka has been able to attract developers to construct office space in Edison Lakes without tax abatement. The TIF is then available for additional public improvements in the area. Mr. Faccenda thanked Mr. Brademas for his comments. 6. NEW BUSINESS Mr. Hunt asked permission to add items 6.i. and 6J. . to the agenda and to consider them at the beginning of New Business. There was no objection and the items were to the agenda. i. Commission approval requested for use of Commission -owned property by the West Washington - Chapin Revitalization Project, Inc. for a neighborhood picnic on September 12, 1995. Mr. Hunt noted that the Commission approved the use of the property for this purpose on August 12, 1995, but the neighborhood has changed the date of the picnic. They would like approval for the new date. 4 South Bend Redevelopment Commission Regular Meeting - July 21, 1995 6. NEW BUSINESS (Cont.) i. continued... Upon a motion by Ms. Auburn, seconded by Mr. Hunt and unanimously carried, the Commission approved the change in date to September 12, 1995, for use of property in the West Washington - Chapin Development Area for a neighborhood picnic. j. Commission approval requested for Agreement Terminating the Development Agreement Concerning Blackthorn Corporate Center in the Airport Economic Development Area. Mr. Hunt explained that Venterra Inc. has had a contract with the Commission since the end of March 1993 for co- development of Blackthorn Corporate Park (predevelopment, planning, and marketing). Since the Commission did not have the financial capacity to pay cash for their services, the agreement with Venterra was that they would assume all front -end costs and then share 50/50 in the net profit when the land was sold. We have worked with Venterra for 2'/2. years, through the predevelopment phase and the initial marketing stages. We think that a parting of the ways between the two entities on a mutually agreeable basis makes sense. It gives Venterra more flexibility to pursue development angles and returns to the City 100% of the profits as opposed to 50% of the profits. We feel the project is mature enough to move ahead. Venterra has some opportunities that they want to pursue. It makes sense to terminate the agreement. 5 COMMISSION APPROVED THE CHANGE IN DATE TO SEPTEMBER 12, 1995, FOR USE OF PROPERTY IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA FOR A NEIGHBORHOOD PICNIC South Bend Redevelopment Commission Regular Meeting - July 21, 1995 6. NEW BUSINESS (Cont.) j. continued... The staff has been negotiating with them for some time to determine a fair price for buying out the contract. Venterra's out -of- pocket expenses to date have been approximately $127,000. Under the Termination Agreement, those expenses would be reimbursed over the next 90 days. As land sells, Venterra will receive a portion of the sales price, up to $322,000. They have not been paid for any of their services so far. Both sides have agreed that that price represents Ventera's share of value added to the project based on the services they have provided. Venterra is still at risk in the arrangement. Without land sales there is no payment. The staff recommends approving the Termination Agreement. Mr. Hunt noted that the local realtor who was working with Venterra, Coldwell Banker - Anchor, will continue to provide real estate services to market the land. Upon a motion by Ms. Auburn, seconded by Mr. Hunt and unanimously carried, the Commission approved the Agreement Terminating the Development Agreement Concerning Blackthorn Corporate Center in the Airport Economic Development Area. a. Commission approval requested for Resolution No. 1366 related to acquisition of property in the Sample -Ewing Development Area by Eminent Domain. Z South Bend Redevelopment Commission Regular Meeting - July 21, 1995 6. NEW BUSINESS (Cont.) a. continued... Mr. Hunt explained that Resolution No. 1366 adds Miller Paint Store to the acquisition list for the Sample -Ewing Development Plan. Acquiring this parcel will allow us to assemble a larger piece of land for redevelopment. Miller Paint Store is aware that we are moving ahead on this. Upon a motion by Mr. Hunt, seconded by Ms. Auburn and unanimously carried, the Commission approved Resolution No. 1366 related to acquisition of property in the Sample -Ewing Development Area by Eminent Domain. b. Staff report on acquisition of property in the Sample -Ewing Development Area. Mr. Stark noted that the staff has received a counter offer from Charlie Cole for a residential lot located at 519 E. Keasey Street. The original purchase offer was $18,750. The counter offer is $20,250. The staff recommends accepting the counter offer. Upon a motion by Ms. Auburn, seconded by Mr. Hunt and unanimously carried, the Commission accepted the counter offer in the amount of $20,250 from Charlie Cole for property located at 516 E. Keasey Street in the Sample -Ewing Development Area. C. Commission approval requested for Certificate of Completion, Release of Covenants, and Consent to Transfer for 7 COMMISSION APPROVED RESOLUTION NO. 1366 RELATED TO ACQUISITION OF PROPERTY IN THE SAMPLE -EWING DEVELOPMENT AREA BY EMINENT DOMAIN COMMISSION ACCEPTED THE COUNTER OFFER IN THE AMOUNT OF $20,250 FROM CHARLIE COLE FOR PROPERTY LOCATED AT 516 E. KEASEY STREET IN THE SAMPLE - EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - July 21, 1995 6. NEW BUSINESS (Cont.) C. continued... property in the Sample -Ewing Development Area (Parkview Site) Mr. Nussbaum explained that this is a technical procedure necessary to clear up the title on the land that was conveyed to the Park Department for improvements. The Certificate of Completion states that the Park Department has done all they were supposed to do with the land. The document releases the Park Document from all covenants and accepts the transfer of the land back to the Commission. Upon a motion by Mr. Hunt, seconded by Ms. Auburn and unanimously carried, the Commission approved the Certificate of Completion, Release of Covenants, and Consent to Transfer for property in the Sample -Ewing Development Area (Parkview Site) d. Commission approval requested for Extension of Contract with The Panzica Group in the South Bend Central Development Area. Mr. Hunt explained that the Panzica Group has requested an extension of their Contract for Sale of Land for the former Inwoods site. GSA, the end user for whom Panzica was going to develop the site, has fallen behind on their schedule to decide on a new location for the new federal bankruptcy court. They have asked that the contract be extended to October 1, 1995. N. COMMISSION APPROVED THE CERTIFICATE OF COMPLETION, RELEASE OF COVENANTS, AND CONSENT TO TRANSFER FOR PROPERTY IN THE SAMPLE -EWING DEVELOPMENT AREA (PARKVIEW SITE) South Bend Redevelopment Commission Regular Meeting - July 21, 1995 6. NEW BUSINESS (Cont.) d. continued... Upon a motion by Mr. Hunt, seconded by Ms. Auburn and unanimously carried, the Commission approved the Extension of Contract with The Panzica Group in the South Bend Central Development Area. e. Commission approval requested for Extension of Contract with The Holladay Corporation in the South Bend Central Development Area. Mr. Hunt noted that The Holladay Corporation has similarly entered into a Contract for Sale of Land with the Commission for a site that is being considered by GSA as a location for the new bankruptcy court. They have verbally requested an extension of their contract to October 1, 1995 while GSA deliberates their offers. Upon a motion by Ms. Auburn, seconded by Mr. Hunt and unanimously carried, the Commission approved the Extension of Contract with The Holladay Corporation in the South Bend Central Development Area. f. Commission authorization requested to sign tax abatement petition on behalf of Midwest Land Company. Mr. Hunt noted that the Commission has agreed to sell land to Midwest Land Company in the Blackthorn Development Area. We have not, however, had the real estate closing and Midwest Land Company 7 COMMISSION APPROVED THE EXTENSION OF CONTRACT WITH THE PANZICA GROUP IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA COMMISSION APPROVED THE EXTENSION OF CONTRACT WITH THE HOLLADAY CORPORATION IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - July 21, 1995 6. NEW BUSINESS (Cont.) f. continued... would like to apply for tax abatement so they can begin construction. The Commission would need to sign the tax abatement petition on their behalf. Upon a motion by Ms. Auburn, seconded by Mr. Hunt and unanimously carried, the Commission authorized signing of the tax abatement petition on behalf of Midwest Land Company. g. Commission approval requested for Resolution No. 1367 approving an application for real property tax deduction for property located at 5021 Nimtz Parkway in the Airport Economic Development Area. (Midwest Land Company) Mr. Beitzinger read the staff report on the project. Midwest Land Company intends to construct a 120,000 square foot manufacturing facility on 11.2 acres in the Blackthorn Development Area. The building will be a modern, state -of -the -art, financial and commercial printing facility. The total cost of the building is estimated to be $4 million. In addition, machinery and equipment consisting of presses, binding equipment, computer equipment and associated machinery will be brought in. The total estimated cost of the equipment is $20 million, bringing the total project cost to an estimated $24 million. 10 COMMISSION AUTHORIZED SIGNING OF THE TAX ABATEMENT PETITION ON BEHALF OF MIDWEST LAND COMPANY South Bend Redevelopment Commission Regular Meeting - July 21, 1995 6. NEW BUSINESS (Cont.) g. continued... It is estimated that this project will create two hundred (200) new permanent jobs within the first year representing an annual payroll of $8,000,000. A review of the tax abatements previously granted finds that this petitioner has not been granted any previous tax abatement consideration. 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. The property is located in the Airport Economic Development Area which is a Tax Incremental Financing Allocation Area; therefore, the petitions first require the approval of the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance shows that the project meets the qualifications for a ten (10) year real property tax abatement and for a five (5) year personal property tax abatement Without real property abatement the $4,000,000 project would generate approximately $2,016,160 in new taxes over the ten year period. With abatement, the project will generate $1,018,161 in new taxes. Therefore, the cost of the abatement will be approximately $997,999 over the ten year period. Without personal property abatement, the $20,000,000 in new equipment would generate approximately $1,955,676 in new taxes over the five year period. With 11 South Bend Redevelopment Commission Regular Meeting - July 21, 1995 6. NEW BUSINESS (Cont.) g. continued... abatement, the equipment would generate $346,780. Therefore, the cost of the five year personal property abatement will be approximately $1,608,896. Mr. Szarwark, representing Midwest Land Company, noted that Midwest chose the South Bend location because of its proximity to major transportation routes. He noted the highly paid, skilled jobs that would be created in the area. Mr. Faccenda disclosed that he is a retired member of Barnes & Thornburg which is representing Midwest Land Company in this tax abatement. He does not have a conflict of interest on this item. Upon a motion by Mr. Hunt, seconded by Ms. Auburn and unanimously carried, the Commission approved Resolution No. 1367 approving an application for real property tax deduction for property located at 5021 Nimtz Parkway in the Airport Economic Development Area. (Midwest Land Company) h. Commission approval requested for Resolution No. 1368 approving an application for personal property tax deduction for property located at 5021 Nimtz Parkway in the Airport Economic Development Area. (Midwest Land Company) 12 COMMISSION APPROVED RESOLUTION NO. 1367 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 5021 NIMTZ PARKWAY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (MIDWEST LAND COMPANY) South Bend Redevelopment Commission Regular Meeting - July 21, 1995 6. NEW BUSINESS (Cont.) h. continued... Upon a motion by Ms. Auburn, seconded by Mr. Hunt and unanimously carried, the Commission approved Resolution No. 1368 approving an application for personal property tax deduction for property located at 5021 Nimtz Parkway in the Airport Economic Development Area. (Midwest Land Company) 7. PROGRESS REPORTS Mr. Hunt noted that the contractors will begin construction of William Richardson Drive within the next month for the Absorbtech project. He also noted that there is only one remaining parcel Ic of land available in the Toll Road Industrial Park. Mr. Wolf noted that the second public meeting for the downtown vision planning will be held on Monday, July 24. Approximately 50 people attended the last public planning session. 8. NEXT MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for August 4, 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 meeting and the meeting was adjourned at 10:35 a.m. COMMISSION APPROVED RESOLUTION NO. 1368 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 5021 NIMTZ PARKWAY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (MIDWEST LAND COMPANY) NEXT COMMISSION MEETING ADJOURNMENT Ph1lip J. I en t, esident Ann E. olata, Director 13