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HomeMy WebLinkAboutRM 12-01-95SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING December 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. William R Hojnacki Mr. Michael Donoho Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Recording Secretary Mr. James Riggs, Economic Dev. Specialist 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. Mike Trippel, M & K Associates Mr. Mike Rippey, North American Golf Mr. Jack Quimby, North American Golf Mr. Brian Godfrey, North American Golf Mr. John Quickstad, North American Golf Mr. Jim Cierzniak 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday, November 17, 1995. -1- South Bend Redevelopment Commission Regular Meeting - December 1, 1995 2. APPROVAL OF MINUTES (Cont.) a. continued... Upon a motion by Mr. Hojnacki, seconded by Ms. Auburn and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, November 17, 1995. 3. APPROVAL OF CLAIMS Claims submitted December 1, 1995 for approval. ADMIN 1995 (212) NBD Bank N.A. Visa Tri- County News Verkler Construction EIS Environmental Federal Express SAMPLE -EWING DEVELOPMENT AREA (414) York Title & Escrow Inc. Grauvogel & Associates Appraisal Group Jerome E. Michaels St. Joseph County Clerk Indiana Michigan Power Co. Hal & Flora Garber Wiltfong Moving & Storage J & D Contracting, Inc. and Charles Chambliss Thomas General Construction Charles Chambliss and Scott Allin S.B.C.D.A. T.I.F. GENERAL ACCOUNT (420) Verkler Inc. Upon a motion by Ms. Auburn, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Claims submitted December 1, 1995. IPA COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, NOVEMBER 17, 1995 $7.27 $49.10 $1,080.00 $1,600.00 $24.50 $6,615.00 $2,537.50 $150.00 $300.00 $112,500.00 $392.57 $102.00 $325.00 $4,130.00 $110.00 $150.00 $12,227.33 COMMISSION APPROVED THE CLAIMS SUBMITTED DECEMBER 1, 1995 South Bend Redevelopment Commission Regular Meeting - December 1, 1995 4. COMMUNICATIONS There were no Communications. THERE WERE NO COMMUNICATIONS 5. OLD BUSINESS There was no Old Business. THERE WAS NO OLD BUSINESS 6. NEW BUSINESS Mrs. Kolata asked permission to add item 6.n. to the agenda. Item 6.n. will be consider following 6.i. There were no objections and the item was so added. a. Commission approval requested for 1996 fees for Blackthorn Golf Course. Mr. Rippey of North American Golf noted that the fees for Blackthorn Golf Course will be raised modestly in 1996. Both resident and non - resident 18 -hole fees will go up $1.00. Also, the fee for cart rental will go up $1.00. Blackthorn is still building its place in the market. Mr. Rippey feels that the fees are properly in line with other courses of similar caliber. Mr. Hunt noted that the fee increase for Blackthorn is very much in line with the fee increase the Park Department approved for municipal courses. -3- South Bend Redevelopment Commission Regular Meeting - December 1, 1995 6. NEW BUSINESS (Cont.) a. continued... Upon a motion by Mr. Hunt, seconded by Ms. Auburn and unanimously carried, the Commission approved the 1996 fees for Blackthorn Golf Course. b. Public Hearing on Resolution No. 1386 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 1996 and ending December 31, 1996 including all outstanding claims and obligations, fixing a time when the same shall take effect, and establishing certain enterprise funds. Mrs. Kolata asked that the proofs of publication from the South Bend Tribune and the Tri- County News stating that the Notice of Public Hearing was published in those newspapers on November 17, 1995 be entered into the record. There was no objection and the items were so entered. Mrs. Kolata explained that Resolution No. 1386 adopts the 1996 budget for Blackthorn Golf Course. The resolution approves the budget by broad categories by month, allowing the staff some flexibility between line items within the categories. The budget projects total income of $1,625,078 and total expenses of $1,092,356, with a -4- COMMISSION APPROVED THE 1996 FEES FOR BLACKTHORN GOLF COURSE South Bend Redevelopment Commission Regular Meeting - December 1, 1995 6. NEW BUSINESS (Cont.) b. continued... projected operating income surplus of $362,268. The income is based on the 1996 fees just approved. Mrs. Kolata noted that Mr. Robert Hunt represents the Commission on the Blackthorn Joint Advisory Committee which approved this budget at its meeting. Mr. Rippey stated that approximately 28,000 rounds of golf were played at Blackthorn this year. The 1996 budget is predicated on 30,000 rounds. Mr. Faccenda opened the Public Hearing for anyone who wished to speak concerning Resolution No. 1386. Mr. Cierzniak asked that the record show the amount of debt service on the bond for the golf course. Mrs. Kolata responded that the debt service is approximately $361,000. There was no one who wished to speak. Mr. Faccenda closed the Public Hearing. Mr. Faccenda noted that the Commission is not in the golf course business, but the real estate development business. There has been significant development in the area as a result of the public expenditures made. -5- South Bend Redevelopment Commission Regular Meeting - December 1, 1995 6. NEW BUSINFSS (Cont.) b. continued... Mrs. Kolata complimented the Blackthorn staff for their good work. The success of the golf course is a result of their efforts. C. Commission approval requested for Resolution No. 1386. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1386, appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 1996 and ending December 31, 1996 including all outstanding claims and obligations, fixing a time when the same shall take effect, and establishing certain enterprise funds. d. Public Hearing on Resolution No. 1388, a Supplemental Appropriation Resolution of the City of South Bend Redevelopment Commission. Mrs. Kolata asked that the proofs of publication from the South Bend Tribune and the Tri- County News stating that the Notice of Public Hearing was published in those newspapers on November 17, 1995 be entered into the record. There was no 0 PUBLIC HEARING ON RESOLUTION NO. 1386 COMMISSION APPROVED RESOLUTION NO. 1386, APPROPRIATING MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING JANUARY 1, 1996 AND ENDING DECEMBER 31, 1996 INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT, AND ESTABLISHING CERTAIN ENTERPRISE FUNDS. Ll South Bend Redevelopment Commission Regular Meeting - December 1, 1995 6. NEW BUSINESS (Cont.) d. continued... objection and the items were so entered. Mrs. Kolata explained that Resolution No. 1388 appropriates $450,000 of tax increment funds in the Airport Economic Development Area to be spent on local public improvements. This tax increment will be available to the Commission the last business day of 1995. It will be used to reimburse certain city departments for expenditures they have undertaken on the Commission's behalf in order to meet commitments on public improvements for projects involving companies locating in the area. Mr. Faccenda opened the Public Hearing for anyone who wished to speak concerning Resolution No. 1388. There was no one who wished to speak. Mr. Faccenda closed the Public Hearing for whatever action the Commission wished to take. e. Commission approval requested for Resolution No. 1388. Upon a motion by Ms. Auburn, seconded by Mr. Hcjnacki and unanimously carried, the Commission approved Resolution No. 1388, a Supplemental Appropriation Resolution of the City of South Bend Redevelopment Commission. -7- PUBLIC HEARING ON RESOLUTION NO. 1388 COMMISSION APPROVED RESOLUTION NO. 1388, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION. South Bend Redevelopment Commission Regular Meeting - December 1, 1995 6. NEW BUSINESS (Cont.) f. Commission approval requested for Resolution No. 1395 approving an application for real property tax deduction for property located at 1024 South Main Street in the Sample -Ewing Development Area. (M & K Associates) Mr. Beitzinger read the staff report on the project. M & K Associates intends to construct a 4,250 square foot steel and masonry facade building at the northeast corner of Main and Garst Streets. M & K Associates will then lease the building to Hydronic & Steam Equipment. Hydronic & Steam Equipment is being relocated from 508 East Ohio Street through the Redevelopment Department acquisition of property for the new Family and Childrens Center. Hydronic & Steam Equipment is a manufacturers' representative and wholesale distributor of industrial machinery and equipment. The total estimated cost of the new building is $200,000. It is estimated that this project will create two (2) new jobs within the first year, representing a new annual payroll of $36,000 and will maintain five (5) existing permanent full time and no part time jobs, with an annual payroll of $323,000. The petitioner has not been granted any previous tax abatement consideration. -8- CWSouth Bend Redevelopment Commission Regular Meeting - December 1, 1995 6. NEW BUSINFSS (Cont.) f. continued... The property is properly zoned for the proposed use. The property is located in an area presently designated as a Thx Abatement Impact Area, and is also located in an Economic Development Area and the Urban Enterprise Zone. The property is also located in the Sample /Ewing 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 three (3) year real property tax abatement. A review of the cost of the abatement shows that, without abatement, the project will generate approximately $30,986 in new taxes over the three year period. With abatement, the project will generate approximately $10,432. Therefore, the cost of the abatement is approximately $20,554 over the three year period. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1395 approving an application for real property tax deduction for property located at 1024 South Main Street in la COMMISSION APPROVED RESOLUTION NO. 1395 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1024 SOUTH MAIN STREET IN THE SAMPLE -EWING DEVELOPMENT AREA. (M & K ASSOCIATES) South Bend Redevelopment Commission Regular Meeting - December 1, 1995 6. NEW BUSINESS (Cont.) f. continued... the Sample -Ewing Development Area. (M & K Associates) g. Commission approval requested for Certificate of Waiver for property located at 305 E. Fox Street. (Alfonso Cardenas and Northern Oak Homes, Inc.) Mrs. Kolata noted that this Certificate of Waiver forgives $750 as of November 23 for each of the years 1989 through 1995. Upon a motion by Ms. Auburn, seconded by Mr. Hunt and unanimously carried, the Commission approved the Certificate of Waiver in the amount of $750 as of November 23 for each of the years 1989 through 1995 for property located at 305 E. Fox Street. (Alfonso Cardenas and Northern Oak Homes, Inc.) h. Commission approval requested for Certificate of Waiver for property located at 901, 905, and 909 Lincolnway West. (Housing Development Corporation) Mrs. Kolata noted that this Certificate of Waiver forgives $4,500 as of May 30, 1995. -10- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN THE AMOUNT OF $750 AS OF NOVEMBER 23 FOR EACH OF THE YEARS 1989 THROUGH 1995 FOR PROPERTY LOCATED AT 305 E. FOX STREET. (ALFONSO CARDENAS AND NORTHERN OAK HOMES, INC.) South Bend Redevelopment Commission Regular Meeting - December 1, 1995 6. NEW BUSINESS (Cont.) h. continued... Upon a motion by Mr. Hunt, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Certificate of Waiver in the amount of $4,500 as of May 30, 1995 for property located at 901, 905, and 909 Lincolnway West. (Housing Development Corporation) i. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 521 Sherman. (Sharon Easton) Mrs. Kolata explained that the loan to Sharon Easton is in the amount of $6,900.00 at 5 % interest for 10 years with monthly payments of $73.19. The grant is $2,841.63. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Loan and Grant for property located at 521 Sherman. (Sharon Easton) n. Commission approval requested for Resolution No. 1398 related to acquisition of property in the South Bend Central Development Area by Eminent Domain. (CHS) Mrs. Kolata explained that Resolution No. 1398 authorizes the Redevelopment -11- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN THE AMOUNT OF $4,500 AS OF MAY 30, 1995 FOR PROPERTY LOCATED AT 901, 905, AND 909 LINCOLNWAY WEST. (HOUSING DEVELOPMENT CORPORATION) COMMISSION APPROVED THE LOAN AND GRANT FOR PROPERTY LOCATED AT 521 SHERMAN. (SHARON EASTON) South Bend Redevelopment Commission Ask Regular Meeting - December 1, 1995 6. NEW BUSINESS (Cont.) n. continued... Commission to send the purchase offer to the property owner of the land surrounding Central High School with the offering price being $1.00 contingent upon Commission acceptance of Owner's lease - purchase bid for the property, submitted in response to Commission solicitation for bids for disposition by lease- purchase of the property. Upon a motion by Ms. Auburn, seconded by Mr. Hunt and unanimously carried, the Commission approved Resolution No. 1398 related to acquisition of property in the South Bend Central Development Area by Eminent Domain. j. Commission approval requested for Resolution No. 1396 setting the Fair ReUse Value of Land in the South Bend Central Development Area. (Central High School Apartments) Mrs. Kolata noted that as part of the permanent financing for Central High School Apartments the developer needs to own the property surrounding the apartments. After the Commission purchases the property surrounding Central High School for one dollar, it needs to put the property up for bid. We've determined that the Fair ReUse Value of the property is $299,000.00 structured as a 30 -year lease purchase. -12- COMMISSION APPROVED RESOLUTION NO. 1398 RELATED TO ACQUISITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA BY EMINENT DOMAIN South Bend Redevelopment Commission ANN Regular Meeting - December 1, 1995 6. NEW BUSINESS (Cont.) j. continued... We intend to publish the Notice of Intended Disposition of Land on December 1, 1995 and December 8, 1995 with Receipt of Bids at 10:00 a.m. on December 19, 1995. Upon a motion by Mr. Donoho, COMMISSION APPROVED RESOLUTION NO. 1396 seconded by Mr. Hojnacki and SETTING THE FAIR REUSE VALUE OF LAND IN unanimously carried, the Commission THE SOUTH BEND CENTRAL DEVELOPMENT approved Resolution No. 1396 setting AREA. (CENTRAL HIGH SCHOOL APARTMENTS) the Fair ReUse Value of Land in the South Bend Central Development Area. (Central High School Apartments) k. Commission authorization requested to publish Notice of Intended Disposition of Land with publication dates of December 1, 1995 and December 8, 1995 and Receipt of Bids at 10:00 a.m. on December 19, 1995. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Notice of Intended Disposition of Land with publication dates of December 1, 1995 and December 8, 1995 and Receipt of Bids at 10:00 a.m. on December 19, 1995. 1. Commission approval requested for Agreement between the City of South Bend, Department of Redevelopment and the City of South Bend, Indiana concerning the reimbursement to the 9911 COMMISSION APPROVED THE NOTICE OF INTENDED DISPOSITION OF LAND WITH PUBLICATIONS DATES OF DECEMBER 1, 1995 AND DECEMBER 8, 1995 AND RECEIPT OF BIDS AT 10:00 A.M. ON DECEMBER 19, 1995 South Bend Redevelopment Commission Regular Meeting - December 1, 1995 6. NEW BUSINESS (Cont.) 1. continued... City of expenses incurred within the South Bend Central Development Area. Mrs. Kolata explained that pursuant to the Agreement, the Commission agrees to reimburse the City from tax increment funds generated within the South Bend Central Development Area Allocation Area for expenditures made by the City in connection with the improvements. The reimbursement will be made over a period of time, not to exceed three years, subject to annual appropriation of tax increment dollars by the Commission. The resolution represents that, although the Commission can make no covenants, it is the Commission's intent to make such reimbursements. Mr. Faccenda noted that he has no legal conflict of interest on this item under Indiana law. However it is obvious that he has spent significant time on the Hall of Fame project. He will abstain from voting on this item. Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Commission approved the Agreement between the City of South Bend, Department of Redevelopment and the City of South Bend, Indiana concerning the reimbursement to the City of expenses -14- COMMISSION APPROVED THE AGREEMENT BETWEEN THE CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT AND THE CITY OF SOUTH BEND, INDIANA CONCERNING THE REIMBURSEMENT TO THE CITY OF EXPENSES INCURRED WITHIN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting - December 1, 1995 6. NEW BUSINESS (Cont.) 1. continued... incurred within the South Bend Central Development Area. Mr. Faccenda abstained from voting. m. Commission approval requested for Resolution No. 1397 approving the transfer of property to the City of South Bend. Mrs. Kolata explained that we have now obtained the lot at 202 S. Chapin and the house and lot at 306 S. Chapin in the West Washington- Chapin Development Area and are ready to Afk transfer them to the City of South Bend. They will then be transferred to South Bend Heritage with the intent that the house be moved and rehabilitated to house an African American resource center. The center is to be completed within 12 months of the relocation of the structure to the real property. Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Commission approved Resolution No. 1397 approving the transfer of real property to the City of South Bend, Indiana. 7. PROGRESS REPORTS Mrs. Kolata reported that the staff closed with M & K Associates (Hydronic and Steam Equipment) and with Charles Hayes, Inc. on -15- COMMISSION APPROVED RESOLUTION NO. 1397 APPROVING THE TRANSFER OF REAL PROPERTY TO THE CITY OF SOUTH BEND, INDIANA. PROGRESS REPORTS South Bend Redevelopment Commission Regular Meeting - December 1, 1995 7. PROGRESS REPORTS (Cont.) November 29. We expect to close next week with Practico Development. Mrs. Kolata also noted that the staff has a closing later today with Western Avenue Partners for the GSA site. Mrs. Kolata noted that the tree lighting in connection with Downtown for the Holidays will be held at 5:00 today. Mrs. Kolata also noted that there will be a reception honoring F. Jay Nimtz at 3:30 today at the Charles Martin Youth Center. The annual R Jay Nimtz Exemplary Public Service Award will be presented. S. NEXT CONMSSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for December 15, 1995 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Hunt made a motion that the meeting be adjourned. Mr. Hojnacki seconded the motion and the meeting was adjourned at 10:45 a.m. Philip J Fac nd , President -16- NEXT COMMISSION MEETING ADJOURNMENT l' w Ann . Kolata, Director