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HomeMy WebLinkAboutRM 10-20-95SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING October 20, 1995 10:00 a.m. Presiding: Paula N. Auburn Vice - President 1. ROLL CALL 1308 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana Members Present: Ms. Paula N. Auburn, Vice - President Mr. Robert W. Hunt, Secretary Mr. Michael Donoho Members Absent: Mr. Philip J. Faccenda, President 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 Mr. Gabriel Okafor, Economic Dev. Specialist Mr. John Stark, Economic Dev. Specialist Mr. Tom Eddington, Economic Dev. Specialist Business Assistance Staff: Mr. Michael Beitzinger, Economic Dev. Specialist Housing Staff: Ms. Mary Richmond Ms. Ernestine Ligon Media: Mr. Donald Porter, South Bend Tribune Mr. Thom Howell, U -93 Others: Mayor Joseph E. Kernan Mr. Carter Wolf, Center City Associates Mr. Norm Stangland, WSBT Mr. Steve Ellison, Coldwell Banker Anchor Mr. Matt Stokes, ATEC Associates Mr. William Panzica, The Panzica Group Mr. Jack Young, Blackstone Development Co. Mr. Jack Alexander, Interplastic Corp. Mr. Peter Trybula, Baker & Daniels Mr. Glen Smith, Practico Development Mr. Charles R Hayes go fift Ms. Auburn announced that the Executive Session will continue immediately following adjournment of the Regular Meeting. 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday, October 6, 1995. Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, October 6, 1995. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, OCTOBER 6, 1995 Redevelopment Commission Claims submitted October 20, 1995, for approval. ADMIN 1995 (212) Baker & Daniels Gene's Camera Store Kinko's Dave's Landscaping Inc. Dept. of Engineering Petty Cash SAMPLE- EWING DEVELOPMENT AREA A414) Peirce & Associates Jerome E. Michaels York Title & Escrow Service Troyer Group Inc. Appraisal Group South Bend Tribune Dennis Rajski Builders & Charles Chambliss Indiana Michigan Power Co. B & J Excavation Co. Inc. Petty Cash Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission approved the Claims submitted October 20, 1995. -2- $ 6,726.71 $ 82.03 $ 13.86 $ 1,004.40 $ 573.05 $ 105.86 $ 285.00 $ 600.00 $ 150.00 $ 5,681.38 $ 375.00 $ 21.82 $ 20,120.00 $ 664.70 $ 35,512.50 $ 411.00 COMMISSION APPROVED THE CLAIMS SUBMITTED OCTOBER 20, 1995 South Bend Redevelopment Commission Regular Meeting - October 20, 1995 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS Mrs. Kolata asked permission to add five items to the agenda. There was no objection and items 6.u., 6.v., 6.w., 6.x., and 6.y. were added to the agenda. c. Staff report on disposition of property in the Airport Economic Development Area. Mr. Riggs gave the staff report on the proposal. The Commission has received a proposal from Blackstone Development Corporation to purchase a 5.531 acre parcel of land in the Blackthorn Corporate Park (part of Lot 2). Blackstone Development Corporation is a Mishawaka corporation owned by John A. Young, Jr. and Donald E. Best, Jr. Blackstone is affiliated with the Stone Real Estate Group, a group of real estate companies involved with real estate development. The Stone Real Estate Group is the developer of Park Place at Edison Lakes and the Edison Lakes Medical Center. Blackstone is proposing to construct the Village at Blackthorn, a low rise office condominium village with several free- standing, single story, 6,000 to 9,000 sq. ft., brick and glass buildings. Units within each building would be offered for sale or lease to prospective owners /tenants. While the proposal states that the developers would like -3- South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSEWSS (Cont.) c. continued... to see as many as nine buildings containing 69,000 sq. ft. in the Village at Blackthorn, this proposal is only for the initial phase of the project. This phase would include a total of three buildings (24,000 sq. ft.) built as space is sold, or leased, in each building. The first building (9,000 sq. ft.) is expected to be built soon, once Blackstone receives an anticipated letter of intent from a prospective tenant. The proposed purchase price is $138,275 ($25,000 per acre). Acquisition of the property would be a phased take -down. Mr. Young reiterated that Blackstone Development Company expects to develop 70,000 square feet of office space in nine buildings over approximately five to six years. The first phase will be three buildings on 5.5 acres, totalling 24,000 square feet of office space. They anticipate breaking ground yet this fall, weather permitting. The first building is 100 % leased. They would construct the other two buildings when they have the demand for them, probably within two years. They will be office condominiums to be either purchased or leased. The design will be similar to what they have built in Park Place at Edison Lakes where they have built eleven buildings (70,000 square feet) since 1991. Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission referred the proposal from Blackstone Development Company to the staff for a recommendation at the next meeting. -4- BLACKSTONE DEVELOPMENT COMPANY PROPOSAL REFERRED TO STAFF FOR RECOMMENDATION South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINESS (Cont.) e. Commission approval requested for Resolution No. 1377 approving an application for Personal Property Tax Deduction for property located at 1545 South Olive Street in the Sample -Ewing Development Area. ( Interplastic Corporation, Molding Products Division) Mr. Beitzinger read the staff report on the project. The Molding Products Division of the Interplastic Corporation manufactures and sells sheet molding compound (SMC) and related products. Their project calls for the construction of a 30,000 square foot addition which will house three SMC machines and associated peripheral equipment. Two of the machines will be used for manufacturing, while the third machine will be used as a laboratory model. The total cost of the building addition is estimated at $1 million and the new equipment cost is estimated at $1.5 million. With equipment setup and peripheral equipment, the total cost of the project is estimated at $3 million. Per the petition, it is estimated that this project will create twenty three (23) new, permanent, full-time jobs, within the first year representing an annual payroll of $520,000, and will maintain forty three (43) existing permanent full-time and nine (9) existing permanent part-time jobs representing an annual payroll of $1.2 million. A review of the tax abatements previously granted finds that this petitioner has not been granted any previous tax abatement consideration. -5- South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINESS (Cont.) e. continued... The Building Commissioner has reviewed the project and has found the property to be properly zoned for the proposed use. A review of the tax abatement area maps finds that the property is not 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 this property is located in the Sample -Ewing 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 finds that the petitioner meets the qualifications for a ten (10) year real property tax abatement and meets the qualifications for a five (5) year personal property tax abatement. A review of the cost of the personal property abatement finds that, with an estimated equipment cost of $1,500,000, the taxes on the equipment are expected to be approximately $150,284 over the five year period, without abatement. With abatement the taxes will be approximately $26,648. Therefore the cost of the five year personal property abatement will be approximately $123,636. 0 South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINFSS (Cont.) e. continued... Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1377 approving an application for personal property tax deduction for property located at 1545 South Olive Street in the Sample -Ewing Development Area. (Interplastic Corporation, Molding Products Division) e. Commission approval requested for Resolution No. 1378 approving an application for Real Property Tax Deduction for property located at 1545 South Olive Street in the Sample -Ewing Development Area. (Interplastic Corporation, Molding Products Division) A review of the cost of the real property tax abatement finds that, with an estimated project cost of $1,000,000, the new taxes on the project are estimated to be approximately $516,440 over the ten year period, without abatement. With abatement the taxes are expected to be approximately $260,000. Therefore, the cost of the 10 year real property tax abatement will be approximately $255,638. Upon a motion by Mr. Hunt, seconded by Mr, Donoho and unanimously carried, the Commission approved Resolution No. 1377 approving an application for real property tax deduction for property located at 1545 South Olive Street in the Sample -Ewing Development Area. (Interplastic Corporation, Molding Products Division) -7- COMMISSION APPROVED RESOLUTION NO. 1377 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1545 SOUTH OLIVE STREET IN THE SAMPLE -EWING DEVELOPMENT AREA. (INTERPLASTIC CORPORATION, MOLDING PRODUCTS DIVISION) COMMISSION APPROVED RESOLUTION NO. 1377 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1545 SOUTH OLIVE STREET IN THE SAMPLE -EWING DEVELOPMENT AREA. (INTERPLASTIC CORPORATION, MOLDING PRODUCTS DIVISION) South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINESS (Cont.) a. Staff report on disposition of property in the Sample -Ewing Development Area. Mrs. Kolata noted that at the last Commission meeting the staff had two proposals, each of them for part of Parcel 11. The two proposals overlapped, but we felt that the parties could come to agreement on how to put both of the projects on the property. The staff has met with both parties and believes they have come to an agreement. The first proposal is from Charles R Hayes, Incorporated to build a radio communications tower on part of Parcel 11, approximately 39,648 square feet. Mr. Hayes has offered to purchase the property for $25,375. The facility would consist of a 330 foot radio antenna tower with a prefabricated building at the base of the tower. The equipment and building will be enclosed and secured by a chain link fence. The property will be seeded outside the fenced area. Most of the existing trees will be left. In the revised proposal, one of the guywires will extend onto another part of Parcel 11. Mr. Hayes has asked the Commission to do some curb and sidewalk work related to the project. The staff recommendation is that we accept the purchase offer from Mr. Hayes subject to Mr. Hayes meeting the design guidelines for the area, screening the chain link fence, and agreeing to bear the cost of any curb and sidewalk work that he wishes to do. Mrs. Kolata noted that Practico Development has proposed to purchase approximately 41,209 square feet of Parcel 11 for $25,000. In South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINESS (Cont.) a. continued... They propose to construct a 5,000 square foot building that has 8'2" block walls with an offsetting metal panel. They expect to build a second 5,000 square foot building in about one year. Practico Development has also asked that the Commission repair and clean up the alleys, clean any miscellaneous rubble and debris that is on the site, and repair and replace the sidewalks. The staff does not believe it is necessary to excavate the entire site, but is recommending that the Commission pay up to $5000 of the cost of removing old foundations, etc., from under the portion of the property where the building will be built. The staff recommends that the developer be responsible for sidewalks and curbs, to the extent they are needed. Mrs. Kolata noted that both developers had planned to use what they thought was an alley between their properties. That is actually a vacated alley. The staff recommends that the developers improve that as a drive to their projects and bear the cost of improvements themselves. Both developers objected to the prospect of having to pay for curbs themselves. Ms. Auburn noted that the Commission did not realize there were still outstanding issues. She asked that the proposals be referred back to the staff for resolution of these issues. Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the 0 COMMISSION REFERRED THE PROPOSALS TO STAFF FOR RESOLUTION OF OUTSTANDING ISSUES South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINESS (Cont.) a. continued... Commission referred the proposals to staff for resolution of outstanding issues. b. Commission authorization requested to allow soil borings on part of Disposition Parcel 11 in the Sample -Ewing Development Area. Mrs. Kolata explained that Mr. Hayes has asked permission to have soil borings done on the property. Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission authorized soil borings to be taken from Disposition Parcel 11 in the Sample -Ewing Development Area. d. Report to Commission on results of environmental testing in the Sample -Ewing Development Area. Mr. Matt Stokes, ATEC Associates, made a presentation on the environmental testing they did on the former Avanti site. Mr. Stokes noted that the Redevelopment Commission retained ATEC to take soil samples from the former Avanti site and test for volatile organic compounds. They took twelve soil borings, primarily on the east side of the property where Avanti had an automotive repair shop. There were some oil pits there that have already been removed at the direction of the Commission. The depths of the borings were from 2 feet to 20 feet -10- COMMISSION AUTHORIZED SOIL BORINGS TO BE TAKEN FROM DISPOSITION PARCEL 11 IN THE SAMPLE -EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSIWSS (Cont.) d. continued... deep. Ground water is at approximately 25 feet there, so ground water was not tested. They also took soil borings on the west side of the former Avanti building where there had been some underground storage tanks and some drum storage areas, and some in the center of the site. Mr. Stokes noted that there were no contaminates and no volatile organic constituents found as a result of testing the soil samples. ATEC also did not observe any staining of soil on the property, nor any suspicious odors. The soils on the property should not require any special disposal if the property were developed. Mr. Stokes noted that this location is currently listed as a Cerclis facility by IDEM. ATEC is currently working with the state to get the site reclassified as a low priority site since the storage drums, which caused the site to be added to the Cerclis list, have been removed. Mrs. Kolata noted that we asked ATEC to look at those issues that would affect a potential purchaser. ATEC has found that there is no environmental condition on this site that would preclude development. Mayor Kernan noted that the issue of the environmental condition of this site came up within the last six weeks in discussion of the site's feasibility for a new county jail. The chairman of the county jail building committee alluded to the fact that the site was polluted AdW -11- South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINFSS (Cont.) d. continued... and would cause various repercussions. It was stated that the site was not selected by the committee because it would cost six figures to have the site tested and up to two million dollars to remediate the conditions found there. Mayor Kernan noted that the Commission had previously had ATEC perform testing at the site and had remediated any conditions that were found. The statements, rumors, and innuendos which have been made were unfounded and unfortunate. This new ATEC report confirms that. The Commission has gone to great expense to tear down the building and remediate the site so that it is developable. These statements by the county jail committee have been very damaging to the City's efforts to develop the property. He appreciates the fact that the Commission acted so rapidly to have this study done so that it is very clear to any developers or units of local government, as well as to the public in general, that the City has taken all of the remedial steps to make it a developable piece of property. He hopes this report will put those unfounded, unfortunate rumors to bed. Ms. Auburn noted that South Bend has been very fortunate in comparison to other communities, that the environmental remediation necessary on this former industrial land has been limited and feasible. -12- South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINESS (Cont.) d. continued... Ms. Auburn noted that the Commission accepts the report from ATEC Associates related to environmental testing of the Avanti site. g. Commission approval requested for Resolution No. 1379 approving an application for personal property tax deduction for property located at 3900 William Richardson Drive in the Airport Economic Development Area. (South Bend Absorbtech) Mr. Beitzinger noted that Absorbtech received a real property tax abatement in May 1995. it The project is moving forward and they are now ready for personal property tax abatement. He read the staff report on the project. Absorbtech is in the business of industrial laundering. They have developed a launderable sorbent product, called Sorbits®, that is a practical and cost effective alternative for the disposal of material saturated with industrial process fluids in an environmentally friendly manner. Their dry cleaning process captures these fluids so they can be reused or safely disposed of, and not landfilled. The overall project calls for the construction of a 40,000 square foot dry cleaning facility on 12 acres of land in the Toll Road Industrial Park. The total estimated cost of the building is $1.2 million. -13- COMMISSION ACCEPTED THE REPORT FROM ATEC ASSOCIATES RELATED TO ENVIRONMENTAL TESTING OF THE AVANTI SITE South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINESS (Cont.) g. continued... This petition for tax abatement deals with the machinery and equipment to be installed at the new facility. The total estimated cost of new machinery and equipment is now at $1.3 million, while it is expected that $674,000 will be eligible for tax abatement. As indicated on Absorbtech's real property tax abatement petition, it is estimated that the project will create twenty three (23) new permanent jobs within the first year representing a new annual payroll of $530,000. A review of the tax abatements previously ro granted finds that the petitioner was granted a six year real property tax abatement on June 12, 1995. The building commissioner has reviewed the project and has found the property to be properly zoned for the proposed use. A review of the tax abatement maps finds that the property is not located in an area presently designated as a Thx Abatement Impact Area by the South Bend Common Council. A review of the Redevelopment Allocation areas finds that the property is located in the Airport Economic Development Area, which is a Tax Incremental Financing Allocation Area, therefore, the petition must first be approved by the South Bend Redevelopment Commission. -14- South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINESS (Cont.) g. continued... 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, with an eligible equipment cost of $604,000, the new taxes are expected to be $60,514 without abatement. With abatement the taxes are expected to be approximately $10,730. Therefore the cost of the five year personal property abatement will be approximately $49,784. Peter Trybula, representing Absorbtech, noted that this equipment is resource recovery equipment. The reason the project cost is $1,300,000 and only $600,000 is eligible for tax abatement is because the company is not a manufacturing facility. Only the resource recovery portion of the equipment is eligible for tax abatement. Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1379 approving an application for personal property tax deduction for property located at 3900 William Richardson Drive in the Airport Economic Development Area. (South Bend Absorbtech) -15- COMMISSION APPROVED RESOLUTION NO. 1379 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3900 WILLIAM RICHARDSON DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (SOUTH BEND ABSORBTECH) South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSEVESS (Cont.) h. Commission approval requested for Contract for Sale of Land with Western Avenue Partnership for Parcels C9 -1 and C9 -2 in the South Bend Central Development Area. Mrs. Kolata noted that the Commission accepted the proposal from Western Avenue Partnership at a previous meeting. Rather than amending the previous Contract for Sale of Land, the staff has worked out all the details with them and prepared a new Contract for Sale of Land. This replaces the previous Contract for Sale of Land that had been in place. Mr. Panzica noted that they anticipate beginning construction by December 1. The project will not create any new permanent jobs, but the bankruptcy court will be vacating its present space on which it does not pay taxes. Ms. Auburn noted that she has heard comments about the GSA building being a tax exempt building. She noted that it is a private development which will pay taxes. The building will be leased to GSA. Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission approved the Contract for Sale of Land with Western Avenue Partnership for Parcels C9 -1 and C9 -2 in the South Bend Central Development Area. -16- COMMISSION APPROVED THE CONTRACT FOR SALE OF LAND WITH WESTERN AVENUE PARTNERSHIP FOR PARCELS C9 -1 AND C9 -2 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINESS (Cont.) i. Commission approval requested for Proposal from Shilts Graves & Associates, Inc., for soil borings on Parcels C9 -1 and C9 -2 in the South Bend Central Development Area.. Mrs. Kolata noted that Western Avenue Partnership's original proposal requested that the Commission do some soil borings to determine whether there are any old foundations, etc. Shilts Graves & Associates has proposed doing the borings for a cost of $990. The staff recommends accepting the proposal. Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission accepted the proposal from Shilts Graves & Associates, Inc., for soil borings on Parcels C9 -1 and C9 -2 in the South Bend Central Development Area. j. Commission approval requested for Resolution No. 1380 approving an application for Real Property 1'ax Deduction for property located at 401 S. Michigan Street in the South Bend Central Development Area. (Western Avenue Partners) Mr. Beitzinger read the staff report on the project. Western Avenue Partners, LLC is being created solely for the purpose of constructing and managing a new two story 33,000 square foot office building at the southwest corner of Michigan Street and Western Avenue. The building will be of steel frame with limestone precast concrete -17- COMMISSION ACCEPTED THE PROPOSAL FROM SHILTS GRAVES & ASSOCIATES, INC., FOR SOIL BORINGS ON PARCELS C9 -1 AND C9 -2 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINESS (Cont.) j. continued... panels. Green tinted glass with aged copper colored window frames will be used for all window treatments. The facility will be used to house the South Bend Division of the U.S. Federal Bankruptcy Court and the U.S. Marshal's offices. The total cost of the building is estimated at $4.4 million. This project will not create any new jobs. However, the tenant, the U.S. Federal Bankruptcy Court, employs 26 full-time positions. Additionally, a series of construction and construction related jobs will be created to complete the project. A review of the tax abatements previously granted, finds that the petitioner, Western Avenue Partners, LLC, has not been granted any previous tax abatement consideration. However, some of the principals of Western Avenue Partners have been involved in other projects which have received tax abatement. The previous projects are in compliance with the annual reporting requirements. The Building Commissioner has reviewed the petition and has found the property to be properly zoned for the proposed use. A review of the tax abatement area maps finds that the property is located in an area presently designated as a Tax Abatement Impact Area by the South Bend Common Council. -18- South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINESS (Cont.) k. continued... A review of the Redevelopment Allocation areas finds that this property is located in the South Bend Central Development Area which is a Tax Incremental Financing Allocation Area, therefore, the petition first requires the approval of the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that the petitioner meets the qualifications for a six (6) year real property tax abatement. A review of the cost of the abatement shows that, with a project cost of $4,400,000 and no abatement the new taxes generated by this project would be approximately $1,363,402. Without abatement the new taxes will be approximately $563,539. Therefore, the cost of the six-year abatement will be approximately $799,862. Mr. Hunt noted that the project will pay approximately $563,000 in taxes during the time of the abatement. Mr. Panzica noted that the building has been designed as a "100 year building" —one that they anticipate being in South Bend for a long time. Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1380 approving an application for Real Property Tax Deduction for property located at 401 S. Michigan Street in the South Bend Central Development Area. (Western Avenue Partners) -19- COMMISSION APPROVED RESOLUTION NO. 1380 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 401 S. MICHIGAN STREET IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (WESTERN AVENUE PARTNERS) South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINESS (Cont.) k. Staff report on acquisition of property in the Sample -Ewing Development Area. Mrs. Kolata noted that the staff has received one counter offer for property located at 622 E. Pennsylvania. The counter offer is from Augusta Page in the amount of $20,500. The original purchase offer was $15,000. The staff recommends accepting the counter offer. Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission accepted the counter offer from Augusta Page in the amount of $20,500 for property located at 622 E. Pennsylvania. 1. Commission authorization requested for use of the Morris Civic Plaza by the Office of Community Affairs for the "Downtown for the Holidays" kickoff on December 1, 2 and 3, 1995. Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission authorized the use of the Morris Civic Plaza by the Office of Community Affairs for the "Downtown for the Holidays" kickoff on December 1, 2, and 3, 1995. m. Commission approval requested for Resolution No. 1381 approving the Fair Re- use value of retail space in the Palais Royale Building. Mrs. Kolata noted that the staff has had an inquiry about whether there is additional retail space available on the first floor of the Palais Royale. In order to determine if there is that -20- COMMISSION ACCEPTED THE COUNTER OFFER FROM AUGUSTA PAGE IN THE AMOUNT OF $20,500 FOR PROPERTY LOCATED AT 622 E. PENNSYLVANIA COMMISSION AUTHORIZED THE USE OF THE MORRIS CIVIC PLAZA BY THE OFFICE OF COMMUNITY AFFAIRS FOR THE "DOWNTOWN FOR THE HOLIDAYS" KICKOFF ON DECEMBER 1, 2, AND 3, 1995 South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINESS (Cont.) m. continued... space available, we'd like to put it up for bid. The space being considered is the present fund drive office and the area to the east of the fund drive office, up to the door to the former Mark's Restaurant. The space is approximately 1,800 square feet (net 1,721 square feet). We are offering it for $9.00 per square foot in an improved condition, which means that we will have heating and ventilation put in as well as interior walls. Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission approved Resolution No. 1381 approving the Fair Re -use Value of retail space in the Palais Royale Building. n. Commission authorization requested to publish Notice of Intended Lease of Property with publication dates of October 27 and November 2, 1995 and Receipt of Bids to be at 10:00 a.m., November 17, 1995. Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission authorized publication of the Notice of Intended Lease of Property with publication dates of October 27 and November 2, 1995 and Receipt of Bids to be at 10:00 a.m. , November 17, 1995. o. Commission approval requested for Resolution No. 1382 accepting the transfer of real property from the City of South Bend, Indiana. -21- COMMISSION APPROVED RESOLUTION NO. 1381 APPROVING THE FAIR RE -USE VALUE OF RETAIL SPACE IN THE PALAIS ROYALE BUILDING COMMISSION AUTHORIZED PUBLICATION OF THE NOTICE OF INTENDED LEASE OF PROPERTY WITH PUBLICATION DATES OF OCTOBER 27 AND NOVEMBER 2, 1995 AND RECEIPT OF BIDS TO BE AT 10:00 A.M., NOVEMBER 17, 1995 South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINESS (Cont.) o. continued... Mrs. Kolata noted that this property is in the Southeast Neighborhood. Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission approved Resolution No. 1382 accepting the transfer of real property from the City of South Bend, Indiana. p. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 1813 W. Linden. (Housing Development Corporation) Mrs. Kolata noted that this Certificate of Waiver forgives $526.00 for each of the years as of October 18, 1994 and 1995. Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission approved the Certificate of Waiver in the amount of $526 for each of the years as of October 18, 1994 and 1995 for property located at 1813 W. Linden. (Housing Development Corporation) q. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 313 E. Ewing. (George G. Athens) Mrs. Kolata noted that this Certificate of Waiver forgives $990.00 as of August 1 for each of the years 1993, 1994 and 1995. -22- COMMISSION APPROVED RESOLUTION NO. 1382 ACCEPTING THE TRANSFER OF REAL PROPERTY FROM THE CITY OF SOUTH BEND, INDIANA COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN THE AMOUNT OF $526 FOR EACH OF THE YEARS AS OF OCTOBER 18, 1994 AND 1995 FOR PROPERTY LOCATED AT 1813 W. LINDEN. (HOUSING DEVELOPMENT CORPORATION) South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINESS (Cont.) q. continued... Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission approved the Certificate of Waiver in the amount of $990.00 as of August 1 in each of the years 1993, 1994, and 1995 for property located at 313 E. Ewing. (George G. Athens) r. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 237 S. Kaley. (Daniel J. Kois) Mrs. Kolata noted that this Certificate of Waiver forgives $750.00 as of October 15 in each of the years 1992, 1993, 1994, and 1995. Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission approved the Certificate of Waiver in the amount of $750.00 as of October 15 for each of the years 1992, 1993, 1994 and 1995 for property located at 237 S. Kaley. (Daniel I Kois) s. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 915 W. LaSalle. (Jolene K. Newton) Mrs. Kolata noted that this Certificate of Waiver forgives $425.00 as of October 16 in each of the years 1992, 1993, 1994, and 1995. -23- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN THE AMOUNT OF $990.00 AS OF AUGUST 1 IN EACH OF THE YEARS 1993, 1994, AND 1995 FOR PROPERTY LOCATED AT 313 E. EWING. (GEORGE G. ATHENS) COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN THE AMOUNT OF $750.00 AS OF OCTOBER 15 FOR EACH OF THE YEARS 1992, 1993, 1994 AND 1995 FOR PROPERTY LOCATED AT 237 S. KALEY. (DANIEL J KOIS) South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINESS (Cont.) s. continued... Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission approved the Certificate of Waiver in the amount of $425.00 as of October 16 in each of the years 1992, 1993, 1994, and 1995 for property located at 915 W. LaSalle. (Jolene K. Newton) t. Commission approval requested for Deferral Agreement with Carol Smith, 1010 W. Jefferson. Mrs. Kolata explained that Carol Smith has a loan for a property rehab. She was delinquent in the payments, primarily due to illness. She has been making an effort to bring her account current. The Bureau of Housing has renegotiated the loan in order to bring her current. The staff recommends approving the deferral. Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission approved the Deferral Agreement with Carol Smith, 1010 W. Jefferson. u. Commission approval requested for letter from Indiana Michigan Power related to the increased cost of moving power lines. Mrs. Kolata explained that our agreement with Midwest Land Company stipulates that we will share the cost of having some power lines moved along Nimtz Parkway. There is an additional cost of $25,000 for burying tree stumps. That additional cost will be our cost. -24- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN THE AMOUNT OF $425.00 AS OF OCTOBER 16 IN EACH OF THE YEARS 1992, 1993, 1994, AND 1995 FOR PROPERTY LOCATED AT 915 W LASALLE. (JOLENE K. NEWTON) COMMISSION APPROVED THE DEFERRAL AGREEMENT WITH CAROL SMITH, 1010 W JEFFERSON South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINESS (Cont.) u. continued... Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission approved the letter from Indiana Michigan Power related to the increased cost of moving power lines. v. Commission authorization requested to request the Board of Public Works to act as our agent to design and construct a boulevard in the Sample -Ewing Development Area. Mrs. Kolata explained that this boulevard will be located between Parkview Juvenile Detention Center and the IVY Tech Campus. By having the Board of Works act as the Commission's agent, they will award all contracts and supervise the design and construction of the new boulevard. Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission authorized a letter requesting the Board of Public Works to act as its agent in the design and construction of a boulevard in the Sample -Ewing Development Area. w. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 606 S. Bendix. (Gloria Alvarez) Mrs. Kolata explained that the loan to Gloria Alvarez is in the amount of $8,350 at 1 % interest for 15 years with monthly payments of $49.97. The grant is $8,195.00. -25- COMMISSION AUTHORIZED A LETTER REQUESTING THE BOARD OF PUBLIC WORKS TO ACT AS ITS AGENT IN THE DESIGN AND CONSTRUCTION OF A BOULEVARD IN THE SAMPLE -EWING DEVELOPMENT AREA . , , South Bend Redevelopment Commission Regular Meeting - October 20, 1995 6. NEW BUSINESS (Cont.) w continued... Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission approved the Loan and Grant for property located at 606 S. Bendix. (Gloria Alvarez) x. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 1054 N. Huey. (Carolyn Tatum) Mrs. Kolata noted that the loan to Carolyn Tatum is in the amount of $2,750 at 3 % interest for five years with monthly payments of $49.41. The grant is $1,724.80. Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission approved the Loan and Grant for property located at 1054 N. Huey. (Carolyn Tatum) Y. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 132 S. Chapin. (Terry and Lori Cole) Mrs. Kolata noted that the loan to Terry and Lori Cole is in the amount of $11,600 at 6% interest for 20 years with monthly payments of $83.11. The grant is $4,910.40. Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission approved the Loan and Grant for property located at 132 S. Chapin. (Terry and Lori Cole) -26- COMMISSION APPROVED THE LOAN AND GRANT FOR PROPERTY LOCATED AT 606 S. BENDIX. (GLORIA ALVAREZ) COMMISSION APPROVED THE LOAN AND GRANT FOR PROPERTY LOCATED AT 1054 N. HUEY. (CAROLYN TATUM) COMMISSION APPROVED THE LOAN AND GRANT FOR PROPERTY LOCATED AT 132 S. CHAPIN. (TERRY AND LORI COLE) / 1`10 1 South Bend Redevelopment Commission Regular Meeting - October 20, 1995 7. PROGRESS REPORTS Mrs. Kolata reported that the staff is very busy negotiating with prospects for the Sample -Ewing Development Area and the Airport Economic Development Area. 8. NEXT COMI USSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for November 3, 1995 at 10:00 a.m. PROGRESS REPORTS NEXT COMMISSION MEETING 9. ADJOURNMENT There being no further business to come before ADJOURNMENT the Redevelopment Commission, Mr. Hunt made a motion that the meeting be adjourned. Mr. Donoho seconded the motion and the meeting was 'i adjourned at 11:15 a.m. Philip J. Fa ,President Ann's. Kolata, Director JOIN -27-