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HomeMy WebLinkAboutRM 09-01-95SOUTH BEND REDEVELOPMENT COMNIISSION REGULAR MEETING September 1, 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. Michael Donoho Mr. William R Hojnacki Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mr. Jon R. Hunt, Executive Director Mrs. Cheryl Phipps, Recording Secretary Mr. Gabriel Okafor, Economic Dev. Specialist Mr. Tom Eddington, Economic Dev. Specialist Housing Staff. Ms. Mary Richmond, Asst. Director Media: Mr. Thom Howell, U -93 Mr. Donald Porter, South Bend Tribune Others: Mr. Carter Wolf, Center City Associates Ms. Joelle Webb, Secretary Mr. Tom Sheehan Mr. Charles Pryor Ms. Hattie Pryor Mr. Kevin Smith Mr. Lee Heppenheimer Mr. James Masters Mr. Robert Gonderman Mr. Anna Gonderman Mr. George Weber, Korbuly Graf Architects Mr. Mark Zeyen Ms. Jackie Zeyen -1- 2. APPROVAL OF MIEN UTF„S a. Approval of Minutes of the Regular Meeting of Friday, August 18, 1995. Upon a motion by Mr. Donoho, seconded COMMISSION APPROVED THE MINUTES OF by Mr. Hojnacki and unanimously carried, THE REGULAR MEETING OF FRIDAY, the Commission approved the Minutes of the AUGUST 18, 1995 Regular Meeting of Friday, August 18, 1995. 3. APPROVAL OF CLAIMS ADMIN 1995 (212 American Planning Association $87.50 Business Systems $32.01 William Aerial & Mapping $1212.50 Thomas General Construction $35.00 Baker & Daniels $282.71 Tri- County News $34.58 Federal Express $50.50 ADT Security System, Inc. $1136.88 Indiana University of South Bend $355.00 South Bend Tribune $33.44 NBD Skokie Bank N.A. Visa $839.11 AIRPORT TIF REVENUE (324 Holladay Property Services Inc. $7,200.00 Herald- Palladium $ 890.00 Pitcock Group, Inc. $7,350.00 Venterra $10,953.82 SAMPLE -EWING DEVELOPMENT AREA _(414 Inez King $80.14 Sarah Burns & Martin Moving & Storage Co. $634.05 Abdullah & Julia Nabaa & York Title & Escrow $16,713.60 Thomas General Construction $800.00 ADT Security Systems, Inc. $573.50 Troyer Group Inc. $5,421.02 Grauvogel & Associates $2,887.50 -2- South Bend Redevelopment Commission Regular Meeting - September 1, 1995 3. APPROVAL OF CLAIMS (Cont.) SAMPLE -EWING DEVELOPMENT AREA (414) United Parcel Service York Title & Escrow Bekins Van Lines Charles Chambliss & Laidig Concrete Inc. Tri- County News Upon a motion by Ms. Auburn, seconded by Mr. Robert Hunt and unanimously carved, the Commission approved the Claims submitted September 1, 1995. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS a. Opening of bids for disposition parcels 33, 34, 35 in Sample Ewing Development Area. Mr. Jon Hunt noted that the Commission has received only one bid and it is for Parcel No. 34 located on the south side of Sample Street between 204 and 222 E. Sample Street in the Sample -Ewing Development Area. Charles and Hattie P. Pryor, Champion Soft Water, Inc., have proposed to construct a 5,000 square foot building to house the offices of Champion Soft Water, its retail sales, and its warehouse. The new location will consolidate all the operations of the company at one location. They also plan -3- $9.50 $200.00 $2,235.31 $340.00 $322.70 COMMISSION APPROVED THE CLAIMS SUBMITTED SEPTEMBER 1, 1995 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - September 1, 1995 6. NEW BUSINESS (Cont.) a. continued... to construct a drive -thru at the location. Champion Soft Water has offered $33,025 for Parcel 34, subject to a favorable environmental inspection. A performance guarantee of $3,302.50 is attached, as well as a financial statement of the business and a site plan and rendering of the proposed facility. Mr. Pryor started the Champion Soft Water business in his home, moved to Roseland, and is now interested in expanding his business, locating in South Bend. Mr. Masters, representing Champion Soft Water, noted that the drive -thru would be the only such facility available for soft water salt in the area. Mr. Masters also noted that Champion Soft Water also distributes bottled water which it currently ships in. At their new facility, they hope to add, within one year, the capacity to bottle their own water. The total cost of the project is estimated at $250,000. Ms. Auburn thanked the Pryors for continuing to work with the Commission to find a South Bend location for their business after the unfortunate position the Pryors found themselves in competing with the Fire Fighters Federal Credit Union for another site. -4- South Bend Redevelopment Commission Regular Meeting - September 1, 1995 6. NEW BUSINESS (Cont.) a. continued... Upon a motion by Mr. Donoho, seconded by Mr. Hojnacki and unanimously carried, the Commission accepted the proposal from Champion Soft Water for Parcel No. 34 in the Sample -Ewing Development Area. b. Staff report on disposition of land in the Airport Economic Development Area. Mr. Jon Hunt noted that the Commission has received a proposal from Sycamore Knoll, Inc. It is the second proposal from Sycamore Knoll in the Blackthom Development Area. Based on a closer look at the way Blackthorn is developing and the future needs of its lessee, Sycamore Knoll believes that this location will better suit its needs as well as those of Blackthorn. If the proposal is accepted, Sycamore Knoll requests that its earlier proposal to purchase a site in Blackthorn across from the clubhouse be withdrawn and the security deposit for that site be applied to the deposit for the new proposal. Sycamore's new proposal is for two parcels located at Nimtz and Mayflower. The first is t3.7 acres for which they offer $92,500 or $25,000 an acre and the second is ±4.3 acres for which they offer $107,500 or $25,000 an acre. According to the proposal, construction will begin as soon as possible on the first parcel. The second parcel will be developed within five years. -5- COMMISSION ACCEPTED THE PROPOSAL FROM CHAMPION SOFT WATER FOR PARCEL NO. 34 IN THE SAMPLE -EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - September 1, 1995 6. NEW BUSINESS (Cont.) b. continued... Mr. Gonderman noted that one of the highlights of this proposal process has been working with the Redevelopment staff. He noted that they intend to initially construct an 8,000 square foot facility that will be a high -scale event center, which will likely include satellite communications for businesses in the area. Mr. Gonderman noted that the parking, which could be for as many as 600 cars if the expansion takes place, will be well screened and will include at least four tree islands to break it up. Mr. Gonderman explained that soon after the construction of the event center, he expects to construct the maintenance garage in the basement of one of his office buildings planned for construction on the second parcel. He also noted that he will need an additional building to store gasoline for mowing machines away from the other buildings. Mr. Jon Hunt commented that the architects have done an excellent job of taking advantage of the site and the potential for development there. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the withdrawal by Sycamore Knoll, Inc. of its previous proposal and accepted the new proposal of Sycamore Knoll, Inc., conditioned on the parties' arriving at a mutually acceptable site plan for the project and contractual language. -6 COMMISSION APPROVED THE WITHDRAWAL OF THE PREVIOUS PROPOSAL FROM SYCAMORE KNOLL, INC. AND ACCEPTED THE NEW PROPOSAL CONDITIONED ON ARRIVING AT A MUTUALLY ACCEPTABLE SITE PLAN FOR THE PROJECT AND CONTRACTUAL LANGUAGE South Bend Redevelopment Commission Regular Meeting - September 1, 1995 6. NEW BUSINESS (Cont.) C. Staff report on disposition of land in the South Bend Central Development Area. Mr. Eddington gave the staff report on the project. Mr. and Mrs. Zeyen propose to develop the former Dreisbach building as a commercial office development. The project would be completed in two phases: phase one would be to develop the majority of the space on the first level, approximately 20,000 square feet; phase two encompasses the remaining 10,000 square feet of the first level. Construction will begin in early October with completion of phase one by June 1996. Construction of phase two would begin in July 1996 and be completed by September 1996. Mr. Eddington noted that the ZeyeWs have offered $50,000 for the site. They are in the process of lining up tenants for the building. Mr. Zeyen noted that their proposal also includes the cost of environmental clean-up documented in the Phase II environmental study. The ZeyeWs will pay for the Phase II environmental study and any environmental cleanup that may be necessary. Mr. Faccenda noted that, according to the provisions under which the Commission acquired the Dreisbach property by donation, the Commission cannot sell the property until 1996. -7- South Bend Redevelopment Commission Regular Meeting - September 1, 1995 6. NEW BUSINESS (Cont.) C. continued... Mr. Faccenda indicated that the Commission is favorably inclined towards the project. They are concerned about the feasibility of the project and requested an economic analysis showing how the project will generate the income needed to succeed. Mr. Faccenda noted that the Commission has gone on record that they will only work with one developer at a time for any piece of property, so there will be no competition for the next several weeks or months on this project. d. Staff report on acquisition of property in the Sample Ewing Development Area. Mr. Jon Hunt explained that the staff has received a counter offer from Hydronic and Steam Equipment Company, Inc. for their property at 503 E. Ohio Street. The counter offer includes the purchase price for the building, adjacent lots, immovable fixtures, proposed relocation amount, and a purchase offer for land at the northeast corner of Main and Garst in the Studebaker Corridor. The proposal from Hydronic and Steam Equipment is that the Commission pay $124,755 for the real estate and immovable fixtures; $60,945 for moving their fixtures and a reestablishment payment of $9,300 for a total fixed relocation payment of $70,245. In addition, the counter offer proposes purchasing Disposition Parcel 8 for $5,000. They would construct a one -story, 4,000 In South Bend Redevelopment Commission Regular Meeting - September 1, 1995 6. NEW BUSINFSS (Cont.) d. continued... square foot building with basement for use as their office and warehouse. The original offering price for the property when it was put up for bid was $13,000. Mr. Jon Hunt noted that Disposition Parcel 8 is a very small piece of property, not suited to many uses, but will serve Hydronic and Steam Equipment well. The staff recommends accepting the counter offer, including the proposal for Disposition Parcel 8. The relocation payment will be made in two installments: 50 % at the time they move their heating and air conditioning equipment that is used for training and 50% at the completion of the move. The staff also recommends that Hydronic and Steam Equipment be allowed to occupy their current premises rent free until 1996 because we have no interest in moving to demolish the structure at this time. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission accepted the counter offer from Hydronic and Steam Equipment, Inc. which included the Commission's purchase of 503 E. Ohio for $124,755, a total fixed relocation payment of $70,245, and the purchase of Disposition Parcel 8 for $5,000, subject to approval of site plan and building materials. RM COMMISSION ACCEPTED THE COUNTER OFFER FROM HYDRONIC AND STEAM EQUIPMENT, INC. WHICH INCLUDED THE COMMISSION'S PURCHASE OF 503 E. OHIO FOR $124,755, A TOTAL FIXED RELOCATION PAYMENT OF $70,245, AND THE PURCHASE OF DISPOSITION PARCEL 8 FOR $5,000 South Bend Redevelopment Commission Regular Meeting - September 1, 1995 6. NEW BUSINESS (Cont.) e. Commission approval requested for proposal for Phase I Environmental Assessment in the Sample Ewing Development Area. Mr. Jon Hunt explained that the staff requested and received two proposals for Phase I environmental assessment of 814- 818 S. Lafayette. Envirocorp proposed to perform the assessment for $1,200. EIS Environmental Associates proposed to perform the assessment for $1,000. The staff recommends accepting the proposal of EIS Environmental based on the lower fee. Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Commission accepted the proposal from EIS Environmental for Phase I environmental assessment in the Sample - Ewing Development Area. f. Commission approval requested for additional services from Ken Herceg & Associates in the Airport Economic Development Area. Mr. Jon Hunt explained that there are additional costs related to the resurveying and replatting the land Midwest Land Company will be developing. The additional costs are $2,805 over the original contract. The staff recommends approving the additional services. Upon a motion by Hunt, seconded by Mr. Hojnacld and unanimously carried, the Commission approved the additional services -10- COMMISSION ACCEPTED THE PROPOSAL FROM EIS ENVIRONMENTAL FOR PHASE I ENVIRONMENTAL ASSESSMENT IN THE SAMPLE -EWING DEVELOPMENT AREA COMMISSION APPROVED THE ADDITIONAL SERVICES FROM KEN HERCEG & ASSOCIATES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - September 1, 1995 6. NEW BUSINESS (Cont.) f. continued... from Ken Herceg & Associates in the Airport Economic Development Area. g. Commission approval requested for Certificate of Waiver for property located at 1128 -30 Lincolnway West. (Joseph MacHatton) Mr. Jon Hunt noted that this Certificate of Waiver waives $1,740.00 for each of the five years ending October 22, 1990, 1991, 1992, 1993, and 1994. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver in the amount of $1,740 for each of the five years ending October 22, 1990, 1991, 1992, 1993, and 1994 for property located at 1128 -1130 Lincolnway West. (Joseph MacHatton) h. Commission approval requested for Certificate of Waiver for property located at 427 1/2 W. Lasalle. (Joseph MacHatton) Mr. Jon Hunt noted that this Certificate of Waiver waives $1,000.00 for each of the four years ending June 24, 1992, 1993, 1994, and 1995. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver in the amount of $1,000 for each of the four years ending June 24, 1992, 1993, 1994, and 1995 for property located at 427'/2 W. LaSalle (Joseph MacHatton) -11- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN THE AMOUNT OF $1,740 FOR EACH OF THE FIVE YEARS ENDING OCTOBER 22, 1990, 1991, 1992, 1993, AND 1994 FOR PROPERTY LOCATED AT 1128 -1130 LINCOLNWAY WEST (JOSEPH MACHATTON) COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN THE AMOUNT OF $1,000 FOR EACH OF THE FOUR YEARS ENDING JUNE 24, 1992, 1993, 1994 AND 1995 FOR PROPERTY LOCATED AT 4271h W. LASALLE (JOSEPH MACHATTON) South Bend Redevelopment Commission Regular Meeting - September 1, 1995 6. NEW BUSINESS (Cont.) i. Commission approval requested for Certificate of Waiver for property located at 413 S. Jackson Street. (Joseph MacHatton) Mr. Jon Hunt noted that this Certificate of Waiver waives $2,250.00 for each of the four years ending June 24, 1992, 1993, 1994, and 1995. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver in the amount of $2,250 for each of the four years ending June 24, 1992, 1993, 1994, and 1995 for property located at 427' /2 W. LaSalle (Joseph MacHatton) j. Commission approval requested for Certificate of Waiver for property located at 712 Lindsey Street. (Louis M. & Mary H. Seago) Mr. Jon Hunt noted that this Certificate of Waiver waives $406.70 for the year ending August 30, 1995 Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver in the amount of $406.70 as of August 30, 1995 for property located at 712 Lindsey Street (Louis M. & Mary H. Seago) k. Commission approval requested for Certificate of Waiver for property located at 1014 N. Eddy Street. (Norman & Deborah Buckman) -12- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN THE AMOUNT OF $2,250 FOR EACH OF THE FOUR YEARS ENDING JUNE 24, 1992, 1993, 1994 AND 1995 FOR PROPERTY LOCATED AT 4271h W. LASALLE (JOSEPH MACHATTON) COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN THE AMOUNT OF $406.70 AS OF AUGUST 30, 1995 FOR PROPERTY LOCATED AT 712 LINDSEY STREET (LOUIS M. & MARY H. SEAGO) South Bend Redevelopment Commission Regular Meeting - September 1, 1995 6. NEW BUSINESS (Cont.) k. continued... Mr. Jon Hunt noted that this Certificate of Waiver waives $789.00 as of August 30, 1995 Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver in the amount of $789.00 as of August 30, 1995 for property located at 1014 N. Eddy Street (Norman & Deborah Buckman) 1. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program through the Bureau of Housing. (F)red & Mable Malone) Mr. Jon Hunt noted that the Loan to the Malones is in the amount of $1,850 at 0% interest for five years. The Grant is $1,655.50. The staff recommends approving the Loan and Grant. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program through the Bureau of Housing. (Fred & Mable Malone) 7. PROGRESS REPORTS Mr. Jon Hunt reported that the real estate closing on the Sullivan Advertising property in the Blackthorn Corporate Park was yesterday. They are on a fast track and expect to begin ILO construction soon. -13- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN THE AMOUNT OF $789.00 AS OF AUGUST 30, 1995 FOR PROPERTY LOCATED AT 1014 N. EDDY STREET (NORMAN & DEBORAH BUCKMAN) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM THROUGH THE BUREAU OF HOUSING. (FRED & MABLE MALONE) PROGRESS REPORTS South Bend Redevelopment Commission Regular Meeting - September 1, 1995 7. PROGRESS REPORTS (Cont.) Mr. Jon Hunt congratulated Mayor Kernan and Philip Faccenda on the successful opening of the College Football Hall of Fame. The opening events were well attended. It was nice to see so many people in the downtown. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for Friday, September 15, 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 10:42 a.m. � , M9 LEW-10 NO_ -1-1, "FuNow It'] I �� President NEXT COMMISSION MEETING ADJOURNMENT Ann E. Kolata, Director -14-