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Home My WebLink AboutRM 09-15-95SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING September 15, 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: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Recording Secretary Business Assistance Staff: Mr. Michael Beitzinger, Economic Dev. Specialist Bureau of Housing Staff: Ms. Mary Richmond Ms. Ernestine Ligon Media: Mr. Thom Howell, U -93 Mr. Donald Porter, South Bend Tribune Others: Mr. Carter Wolf, Center City Associates Mr. Stan Blenke, Schafer Gear Works Mr. Bippin Doshi, Schafer Gear Works Mr. Larry Kinney, Keener Printing Ms. Barbara Keener, Keener Printing Mr. Faccenda announced that the Executive Session will continue following adjournment of the Regular Meeting. 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday, September 1, 1995. Ito South Bend Redevelopment Commission Regular Meeting - September 15, 1995 2. APPROVAL OF MINUTES (Cont.) a. continued... Upon a motion by Mr. Hunt, seconded by Ms. Auburn and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, September 1, 1995. 3. APPROVAL OF CLAIMS ADMIN 1995 (212) Indiana Michigan Power Co. City Clerk's Office Sprint Cellular Petty Cash SAMPLE- EWING DEVELOPMENT AREA (414) Camiros Advanced Environmental Systems Peirce & Associates AAA Mini Storage Hydronic & Steam Equip. Co. an Indiana Partnership Hydronic & Steam Equip. Co. an Indiana Partnership & NBD Bank N.A. St. Joseph County Treasurer Indiana Michigan Power Co. Laidig Construction Inc. & Charles Chambliss Senior Tool & Die Petty Cash Thomas General Construction Indiana Dept. of Environmental Mgmt. Grauvogel & Associates Ren's Service & Hal & Flora Garber AIRPORT ECONOMIC DEVELOPMENT AREA (324) Venterra -2- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, SEPTEMBER 1, 1995 $6.65 $9.47 $74.60 $71.81 $11,789.82 $29,215.70 $400.00 $87.00 $94,721.61 $26,144.01 $3,889.38 $719.18 $120.00 $19,940.00 $ 157.00 $3,630.00 $50.00 $3,300.00 $2,239.00 $2,402.00 South Bend Redevelopment Commission Regular Meeting - September 15, 1995 3. APPROVAL OF CLAIMS (Cont.) Upon a motion by Ms. Auburn, seconded by Mr. Hunt and unanimously carried, the Commission approved the Claims submitted September 15, 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 6.1. to the agenda. There was no objection and the item was added to the agenda. a. Staff report on disposition of property in the Airport Economic Development Area. There was no report. b. Commission approval requested for Resolution No. 1371 approving an application for personal property tax deduction for property located at 411 W. Indiana Avenue. (Keener Printing) Mr. Beitzinger read the staff report on the project. Keener Printing is engaged in the commercial printing and lithography industry. They also perform typesetting, camera and preparatory work, bindery -3- COMMISSION APPROVED THE CLAIMS SUBMITTED SEPTEMBER 15, 1995 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS THERE WAS NO REPORT COMMISSION APPROVED RESOLUTION NO. 1371 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 411 W. INDIANA AVENUE. (KEENER PRINTING) South Bend Redevelopment Commission Regular Meeting - September 15, 1995 6. NEW BUSINESS (Cont.) b. continued... and mailings. Their project calls for the purchase and installation of new bindery equipment including a Buckle Folding Machine and a "Minuteman" Saddle Stitcher. The petitioner has indicated that the new equipment is imperative for the company to remain competitive in the commercial printing market. The turn around time to complete a job is critical and can only be reduced with new faster equipment. The total cost of the equipment is estimated at approximately $183,000. Per the petition, this project is estimated to create two (2) new permanent full-time jobs, representing a new annual payroll of $54,080.00 and will maintain 34 existing permanent full-time and part-time jobs representing an annual payroll of $900,000.00. A review of the tax abatements previously granted, finds that the petitioner was granted a three year real property abatement on March 14, 1988, with resolution no. 1593- 88. That abatement has since expired. The building commissioner has reviewed this project and has found the property to be properly zoned for the proposed use. A review of the tax abatement designation maps finds that the property is located in an area presently designated as a Tax Abatement Impact Area by the South Bend Common Council. -4- South Bend Redevelopment Commission Regular Meeting - September 15, 1995 6. NEW BUSINESS (Cont.) c. continued... A review of the Redevelopment Allocation Areas finds that the property is located in the Sample -Ewing Development Area, which is a Tax Incremental Financing Allocation Area; therefore, the petition for personal property tax abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that the petitioner meets the qualifications for a five (5) year personal property tax abatement. Mr. Kinney noted that the purchase of this equipment is the first phase of expansion at ew their site. In approximately six months they hope to expand the plant itself. As a result of their new capability, they expect their business to increase by 25 % - 30 % over the next two years. A review of the cost of the abatement shows that, without abatement, the new equipment will generate approximately $18,313 in new taxes over the five year period. With abatement, the new taxes will be approximately $3,247. Therefore, the cost of the tax abatement will be approximately $15,066 over the five year period. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1371 approving an application for personal property tax deduction for property located at 411 W. Indiana Avenue. (Keener Printing) -5- South Bend Redevelopment Commission Regular Meeting - September 15, 1995 6. NEW BUSINESS (Cont.) c. Commission approval requested for Resolution No. 1372 approving an application for personal property tax deduction for property located at 814 S. Main Street. (Schafer Gear Works) Mr. Beitzinger read the staff report on the project. Schafer Gear Works is a manufacturer of gears and machined parts to customer specifications. Their project calls for the purchase of a Model EMAG -VSC 200 Vertical Lathe, a Model FA30 CNC 5-Axis shaving machine and a Model RB23 -B35 A/P Mitsubishi Grinder. All three machines will be used exclusively to manufacture gear components for a specific customer. The total cost of the three machines is estimated at $675,000. Per the petition, this project is estimated to create six (6) new permanent full-time jobs, representing a new annual payroll of $150,000 and will maintain 85 existing permanent full-time and part-time jobs representing an annual payroll of $2,500,000. A review of the tax abatements previously granted, finds that the petitioner has been granted several previous tax abatements and they are as follows: Term /Type Resolution No. Date 5 year personal property 1631 -88 July 25, 1988 5 year personal property 1876 -91 June 10, 1991 5 year personal property 2055 -93 July 12, 1993 10 year real property 2148 -94 June 27, 1994 EM South Bend Redevelopment Commission Regular Meeting - September 15, 1995 6. NEW BUSINESS (Cont.) c. continued... The petitioner is in compliance with the reporting requirements for each of the previous abatements. The building commissioner has reviewed this project and has found the property to be properly zoned for the proposed use. A review of the tax abatement designation maps finds that the property is located in an area presently designated as a Tax Abatement Impact Area by the South Bend Common Council. A review of the Redevelopment Allocation Areas finds that the property is located in the Sample -Ewing Development Area, which is a Tax Incremental Financing Allocation Area, therefore, the petition for personal property tax abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that the petitioner meets the qualifications for a five (5) year personal property tax abatement. A review of the cost of the abatement shows that, without abatement, the new equipment will generate approximately $67,627 in new taxes over the five year period. With abatement, the new taxes will be approximately $11,992. There-fore, the cost of the tax abatement will be approximately $55,636 over the five year period. -7- South Bend Redevelopment Commission Regular Meeting - September 15, 1995 6. NEW BUSINESS (Cont.) c. continued... Mr. Doshi thanked the Commission for the support it has given to their company in the past. Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1372 approving an application for personal property tax deduction for property located at 814 S. Main Street. (Schafer Gear Works) d. Commission approval requested for Satisfaction of Debt and Release of Mortgage for property located at 725 S. Carlisle. (Joyce Savari - Miller) Mrs. Kolata explained that this document certifies that the loan secured by property at 725 S. Carlisle has been repaid in full. Upon a motion by Mr. Donoho, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Satisfaction of Debt and Release of Mortgage for property at 725 S. Carlisle. e. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 2614 Grace. (Richard P. Andrews) Mrs. Kolata noted that the Loan to Ricahrd Andrews will be in the amount of $5,450.00 at 0% interest for 15 years. The Grant is in Commission approved Resolution No. 1372 approving an application for personal property tax deduction for property located at 814 S. Main Street. (Schafer Gear Works) COMMISSION APPROVED THE SATISFACTION OF DEBT AND RELEASE OF MORTGAGE FOR PROPERTY AT 725 S. CARLISLE South Bend Redevelopment Commission Regular Meeting - September 15, 1995 6. NEW BUSEWSS (Cont.) e. continued... $5,269.00. Monthly payments will be $30.28. The staff recommends approval. Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property located at 2614 Grace. (Richard P. Andrews) f. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 1337 N. Meade Street (Elsie M. Bibbs) Mrs. Kolata noted that the Loan to Essie Bibbs is in the amount of $4,400.00 at 1 % interest for 8 years. Monthly payments will be $47.71. The staff recommends approval. Upon a motion by Ms. Auburn, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property located at 1337 N. Meade Street ( Essie M. Bibbs) g. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 1628 Sibley Avenue. (Gertrude Coleman) Mrs. Kolata noted that the loan to Gertrude Colemen will be in the amount of $2,450.00 W COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 2614 GRACE. (RICHARD P. ANDREWS) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 1337 N. MEADE STREET (ESSIE M. BIBBS) South Bend Redevelopment Commission Regular Meeting - September 15, 1995 6. NEW BUSINESS (Cont.) g. continued... at 0% interest for 10 years with monthly payments of $20.42. The Grant is $2,279.75. The staff recommends approval. 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 for property located at 1628 Sibley Avenue. (Gertrude Coleman) h. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 807 Diamond Avenue. ( Golena co Burks) Mrs. Kolata noted that the Loan to Golena Burks will be in the amount of $4,750.00 at 0% interest for 8 years with monthly payments of $49.48. The Grant is 4,577.65. The staff recommends approval. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property located at 807 Diamond Avenue. ( Golena Burks) i. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 104 S. Meade. (Lula Mays) -10- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 1628 SIBLEY AVENUE. (GERTRUDE COLEMAN) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 807 DIAMOND AVENUE. (GOLENA BURKS) South Bend Redevelopment Commission Regular Meeting - September 15, 1995 6. NEW BUSINESS (Cont.) i. continued... Mrs. Kolata noted that the Loan to Lula Mays will be in the amount of $2,850.00 at 0.00% interest for 10 years. Monthly payments will be $23.75. The Grant will be $2,692.25. The staff recommends approval. 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 for property located at 104 S. Meade. (Lula Mays) j. Commission approval requested for use of Redevelopment -owned lots on E. Sample Street by Mossberg & Company for parking on September 15, 1995. Mrs. Kolata explained that Mossberg Printing would like to use the lots across from their property for parking in connection with their open house this morning. They have provided proof of insurance and indemnification for the Commission. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission authorized the use of Redevelopment -owned property by Mossberg Printing on September 15, 1995. k. Commission approval requested for proposal from ATEC Associates, Inc. for Phase H Subsurface Investigation in the Sample -Ewing Development Area. -11- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 104 S. MEADE. (LULA MAYS) COMMISSION AUTHORIZED THE USE OF REDEVELOPMENT -OWNED PROPERTY BY MOSSBERG PRINTING ON SEPTEMBER 15, 1995 South Bend Redevelopment Commission Regular Meeting - September 15, 1995 6. NEW BUSINESS (Cont.) k. continued... Mrs. Kolata explained that ATEC will perform twelve soil borings on the Avanti property. Their fee is $9,166. Mrs. Kolata noted that we have had other testing done on the site in the past. This is verification of those findings. Upon a motion by Mr. Hojnacki, seconded by Ms. Auburn and unanimously carried, the Commission approved the proposal from ATEC and Associates for professional services in the Sample -Ewing Development Area. 1. Commission approval requested for Proposal from Lang, Feeney & Associates for professional services in the Airport Economic Development Area. Mrs. Kolata explained that the property the Commission sold to Sycamore Knoll requires filing of a Minor Subdivision. Lang, Feeney has done the surveying for the Sycamore Knoll project and has submitted a proposal to file for the Minor Subdivision for a fee of $1,000 plus reimbursement of the filing fee. The staff recommends accepting the proposal. Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission accepted the proposal from Lang, Feeney & Associates for professional services in the Airport Economic Development Area. SPA COMMISSION APPROVED THE PROPOSAL FROM ATEC AND ASSOCIATES FOR PROFESSIONAL SERVICES IN THE SAMPLE - EWING DEVELOPMENT AREA COMMISSION ACCEPTED THE PROPOSAL FROM LANG, FEENEY & ASSOCIATES FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - September 15, 1995 7. PROGRESS REPORTS Mrs. Kolata reported that Sullivan Advertising held its ground breaking on September 14 and are ready to start pouring footings. Mrs. Kolata reported that the Siam Restaurant will be opening in the Main Street Row Building on September 21. Mr. Wolf reported that there is presently almost no retail space available in the downtown except the former Senor Kelly's building. The downtown is bustling. S. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for Friday, October 6, 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 10:29 a.m. Philip J F ce da, President PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT ! J G- Ann E. Kolata, D' for -13-