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HomeMy WebLinkAboutRM 01-19-96*'k 1.1_4 SOUTH BEND REDEVELOPMENT COMIVIISSION REGULAR MEETING January 19, 1996 10:00 a.m. Presiding: Paula N. Auburn President 1. ROLL CALL 1308 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana Members Present: Ms. Paula N. Auburn, President Ms. Robert W. Hunt, Vice - President Mr. William R Hojnacki, Secretary Mr. Philip J Faccenda Members Absent: 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 Bureau of Housing Staff Business Assistance Staff Media: Others: Ms. Ernestine Ligon Mr. Michael Beitzinger Mr. Don Porter, South Bend Tribune Mr. Carter Wolf, Center City Associates Ms. Auburn noted that Thom Howell passed away a week ago. The Commisson will miss him. He was a professional journalist who always conducted himself with the utmost respect. Our meetings will not be the same without him. 2. APPROVAL OF MINUTES a. Approval of Minutes of the Annual Organizational Meeting of Tuesday, January 2, 1996. -1- I r r_ 2. APPROVAL OF MINUTES (Cont.) a. Continued... Upon a motion by Mr. Hojnacki seconded by Mr. Faccenda and unanimously carried, the Commission approved the Minutes of the Annual Organizational Meeting of Iiiesday, January 2, 1996. b. Approval of Minutes of the Rescheduled Regular Meeting of Tuesday, January 2, 1996. Upon a motion by Mr. Hunt, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Minutes of the Rescheduled Regular Meeting of Iliesday, January 2, 1996. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE ANNUAL ORGANIZATIONAL MEETING OF TUESDAY, JANUARY 2, 1996 COMMISSION APPROVED THE MINUTES OF THE RESCHEDULED REGULAR MEETING OF TUESDAY, JANUARY 2, 1996 Redevelopment Commission Claims submitted January 19, 1996, for approval. ADMIN 1995 (212 Mobile Comm $20.15 Tri County News $56.09 York Title & Escrow $50.00 St. Joseph Title Corp. $250.00 Indiana Michigan Power Co. $6.65 Center City Associates $365.00 SAMPLE - EWING DEVELOPMENT AREA (414 Cole Associates Inc. $9,564.70 Charles Chambliss and J &D Contracting Inc. $175.00 Charles Chambliss and Barany Sheet Metal $335.00 Charles Chambliss and Kathie S. Brown $250.00 Petty Cash (Recording Fees) $331.00 Doug Carpenter $800.00 Peirce & Associates $4,225.00 Advanced Environmental Systems $14,867.42 Larry MinkoR $1,690.00 -2- I L_ South Bend Redevelopment Commission Regular Meeting - January 19, 1996 3. APPROVAL OF CLAIMS (Cont.) SAMPLE- EWING DEVELOPMENT AREA (414) continued... ATEC Associates Inc. $9,166.00 York Title & Escrow Inc. $281.00 The Troyer Group Inc. $301.64 George Frison and Emma Frison $42)639.54 St. Joseph County Treasurer $194.46 Creekside Mortgage Surveys, Inc. $225.00 St. Joseph Title Corp & Francis T. Farrell $17,110.00 George & Emma Frison & York Title & Escrow Inc. $10,064.00 B & J Excavation, Inc. $7,393.75 Upon a motion by Mr. Hojnacki, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Claims submitted January 19, 1996. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS a. Correction to Certificates of Waiver Mrs. Kolata noted that at the December 15 meeting there were Certificates of Waiver approved for properties at 239 Laporte and 431 Cottage Grove. The addresses were switched on the forms and need to be corrected. The corrected amounts to be waived are $1400 as of May 1, 1995 for 239 Laporte and $1740 as of December 22, 1994 and 1995 for 431 Cottage Grove. We would like the Commission to approve these corrections. -3- COMMISSION APPROVED THE CLAIMS SUBMITTED JANUARY 19, 1996 THERE WERE NO COMMUNICATIONS . , South Bend Redevelopment Commission Regular Meeting - January 19, 1996 5. OLD BUSINESS (Cont.) a. Continued... Upon a motion by Mr. Hcjnacki, COMMISSION APPROVED THE CORRECTIONS TO seconded by Mr. Hunt and THE CERTIFICATES OF WAIVER unanimously carried, the Commission approved the corrections to the Certificates of Waiver. 6. NEW BUSINESS a. Staff report on disposition of property in the Airport Economic Development Area. Mr. Riggs presented the following staff report: To: South Bend Redevelopment Commission From: James M. Riggs Blackthorn Project Manager subject: Inn at Blackthorn - Proposal by The Management Consortium Onto: January 30, 1996 The following report describes the most recent proposal submitted by the Developer, The Management Consortium, for the purchase and development of Lot 3, Blackthorn Corporate Park. Each point of the proposal is listed by item followed by the staff recommendation for that point. Purchase Price The proposed purchase price is $120,000 for the 4.463 acre site, or $26,888 per acre. Recommendation: Acceptable. -4- I k South Bend Redevelopment Commission Regular Meeting - January 19, 1996 6. NEW BUSINESS (Cont.) a. continued... Project The Developers propose to construct a 150 -room hotel, for an estimated $10 million, which would be a part of the Choice Hotels International reservation network. This network is the largest hotel reservation network in the world. The hotel would contain 150 suites, of which, six would be convertible, double bay, hospitality suites and six would include in -room Jacuzzi's. The hotel would also include a 40 -seat table service restaurant and cocktail area, serving three meals and room service. A fitness center complete with indoor pool and a business center would also be included. Each suite would have separate living /working and sleeping areas with one king or two queen beds (plus queen sleeper sofa); direct dial phones; two TV's and video - player; telephone data -ports; and mini -bar with refrigerator and microwave. Recommendation: Acceptable. Faithful Performance Guaranty The required faithful performance guaranty of 10 % of the purchase price ($12,000) has been submitted by the Developers. The proposal states that the guaranty would be non - refundable except in following circumstances: 1) the St. Joseph County Airport Authority does not grant a non - compete agreement with the Developers; 2) the Common Council of the City of South Bend does not grant a ten -year tax abatement for the project; or 3) the State of Indiana fails to fund a grant to the City of South Bend for the construction of the proposed Bypass interchange. The guaranty, in the form of two checks submitted by the Developer shall be held by the Commission, uncashed, until the Contract for Sale of Land is executed. Recommendation: The three circumstances that would provide for a refund of the performance guaranty listed above are acceptable with the following modifications: the Developer is limited to a time period ending April 30, 1996 to procure the necessary approvals from the Airport Authority for the non - compete and from the City for the tax - abatement. The third circumstance, should read as follows: the State of Indiana fails to fund a grant to the City of South Bend sufficient to construct the proposed Bypass interchange. -5- South Bend Redevelopment Commission Regular Meeting - January 19, 1996 6. NEW BUSINESS (Cont.) a. continued... Project Schedule The developer has proposed an extended time schedule from the typical Commission project. The following represents the project schedule as proposed: 1. Staff - developer negotiations 12/15/95 2. Developer public presentation 12/15/95 3. Commission approval of proposal 1/19/96 4. Airport Authority grants non - compete 2/96 5. City approves Tax Abatement 2/96 6. Contract for Sale of Land executed 2/96 7. Preliminary plans submitted for design review 5/96 8. Design review completed and approved 6/96 9. Financing commitments obtained by developer 2/97 10. Final plans & specs completed and submitted 4/97 11. Building permit secured 7/97 12. Construction start date 8/97 13. Construction completed -open for business 9/98 The proposal states, however, that Event #6, Contract for sale of land executed, is conditioned upon the prior or simultaneous happening of Events #4 and #5, Airport non - compete and tax abatement approvals. Additionally, the proposal further conditions the project schedule if there is a delay in Events #4, #5, #6. The proposal states that the actual date of the last of the Events #4, #5, #6 (if after 2/29/96) would become the new base date to measure the subsequent Events #7 -13 using the same number of months intervening each event in the above project schedule. Recommendation: The project schedule as listed in Events #1 -13 is acceptable with the following additions and clarifications: Event #6, Contract, will be executed by all parties on or before February 19, 1996, without regard to the timing of Events #4 and #5, Airport Non - Compete and Tax abatement. The Contract will clearly state that the failure by the Developer to gain the approvals necessary for Events #4 and #5 on or before April 30, 1996, shall cause the termination Contract and the return of the faithful performance guaranty to the Developer. If there is a delay with Events #4 or #5, the date of the latest event will become the new base of measure for Events #7 -13 of the project schedule, as stated in the proposal, however, in no event shall Events #4 and #5 occur later then April 30, 1996. At that time, the Developer or the Commission may cancel the Contract. -6- South Bend Redevelopment Commission Regular Meeting - January 19, 1996 6. NEW BUSEWSS (Cont.) a. continued... Additionally, after Event #9, Financing commitments, but prior to Event #11, Building permit, the Developer and the Commission shall establish a time and place for the closing of transfer of property from the Commission to the Developer. Airport Non - compete As mentioned above as Event #4, the Developer is seeking a Non - compete agreement with the Airport Authority. This non - compete would bar the Airport Authority from allowing a hotel to be built on its land. The agreement currently being negotiated by the Developer with the Airport Authority would encompass the first five years of the Inn at Blackthorn's operations, commencing on the first day the hotel is open to the public. The agreement would also include rights to advertise the hotel in the Airport terminal and to operate a courtesy van service with direct phone lines from the terminal. Recommendation: Acceptable. As stated above with regard to both the Faithful Performance Guaranty and the Project Schedule sections, the failure by the Developer to secure the Non - compete from the Airport Authority on or before April 30, 1996 would cancel this proposal and the resulting Contract for Sale of Land and cause the full refund of the performance guaranty. Redevelopment Non - compete The Developer is also seeking a Non - compete covenant from the Commission and the City of South Bend for land controlled by them. This non - compete would also extend for the first five operating years of the hotel. The proposal also indicates that with respect to land privately owned, within the Airport Economic Development Area, the Commission would agree to recommend to the Common Council that zoning be withheld for any other hotel/motel use. Recommendation: Staff recommends that the Commission establish a non - compete covenant, with respect to the land it owns or may acquire, within the Airport Economic Development Area, with the Developer, based on the terms and conditions of the Airport's non - compete (exclusive of any terms regarding compensation paid by the Developer). This represents the full extent of any commitments the Commission can and will make with respect to hotel development within the Airport Economic Development Area. -7- South Bend Redevelopment Commission CRegular Meeting - January 19, 1996 6. NEW BUSINESS (Cont.) a. continued... Tax Abatement The Developer is seeking a ten -year tax abatement for the project. The Developer feels that a tax abatement is critical to secure the financing necessary for the hotel. In order to facilitate the approval of the tax abatement, the Developer has requested that the Commission, as the current owners of the property, jointly petition the Common Council for the abatement. Recommendation: Acceptable. As stated above with regard to both the Faithful Performance Guaranty and the Project Schedule sections, the failure by the Developer to secure the tax abatement on or before April 30, 1996, would cancel this proposal and the resulting Contract for Sale of Land and cause the full refund of the performance guaranty to the Developer. Bypass Interchange The Developer has also conditioned this proposal on the acceptance by the State of Indiana's Transportation Finance Authority of a grant request made by the City of South Bend for the construction of the proposed Nimtz Parkway -US 31 Bypass interchange. If the funding is not secured and construction documents put out for bid by December 31, 1996, the Developer may, at it's option, cancel the Contract for Sale of Land, Event #6, and the performance guaranty would be refunded to the Developer. Recommendation: As mentioned previously in the section Faithful Performance Guaranty, the State of Indiana's acceptance of the grant request shall mean a commitment by the State for funds sufficient for the construction of the project. Financing The Developer is proposing to have final financing commitments in place for the proposed project by February, 1997 (or later if the project schedule is adjusted in a manner approved by the Commission). However, the proposal states that the Developer has the right to extend that deadline for an additional six months (August, 1997) if it can prove to the Commission the Developer demonstrates that it has been diligently pursuing such commitments. Recommendation: Acceptable. However, the proposal did not include some of the required financial information regarding the applicants and the proposed members of a yet to be formed joint venture. This information must be provided to staff prior to the execution of the Contract for Sale of Land. Receipt of this information is a condition of C a South Bend Redevelopment Commission Regular Meeting - January 19, 1996 6. NEW BUSINESS (Cont.) a. continued... the acceptance of this proposal. Evidence of satisfactory financing must be provided to the Commission prior to the actual transfer of ownership of the property. Joint Venture The proposal has been submitted by a corporation known as The Management Consortium, Inc. (an Illinois corporation) or its nominee. The proposal states that the final ownership of the project would be a joint venture (yet to be created) between the key executives of the Management Consortium, Inc. and Venterra and /or its key executives. The proposal also states that the yet to be created joint venture would expand to include other equity partners. Recommendation: The Developer should create the joint venture prior to the execution of the Contract for Sale of Land. However, if the joint venture is not created by that time, then the Contract for Sale of Land would be exclusively between The Management Consortium, Inc. and the Commission. The Contract would require the Commission's approval of any nomination or assignment of the Contract to any entity other than The Management Consortium, Inc., including any assignment to the yet to be formed joint venture described in the proposal. If at anytime throughout the period of the Contract, until the Certificate of Completion is approved by the Commission, all changes of ownership of the project, including the addition of equity partners must be approved by the Commission. All financial information requested of Applicants in the Proposal forms must be included with a request to change the ownership of the project. Other Public Incentives A reference in the proposal states "The only additional public development incentives would be any that might be required by a potential lender. " Recommendation: Acceptance of the Developer's proposal does not bind the Commission or the City to any obligation to provide "additional public development incentives," beyond those specifically mentioned in this report. Licensing Agreement The proposals states that the proposed Comfort Suites would be known as the Inn at Blackthorn. C9 South Bend Redevelopment Commission Regular Meeting - January 19, 1996 6. NEW BUSINESS (Cont.) a. continued... Recommendation: The Developer and the Commission must enter into a separate licensing agreement to allow the use of the Commission's trademark Blackthorn and the Blackthorn "leprechaun" logo. Mrs. Kolata noted that this is an important step in the Development of Blackthorn Corporate Park. The timeline they put in for financing and start of construction is a generous one and, obviously, if they can put it together faster they will do so; but it allows them a reasonable period of time controlling the land in order to obtain financing. It Upon a motion by Mr. Faccenda seconded by Mr. Hojnacki and unanimously carried, the Commission approved the staff report and accepted the Proposal from The Management Consortium for land in the Airport Economic Development Area and authorized sending the following letter showing the conditions of this acceptance: January 23, 1996 Mr. William T. Hurst President The Management Consortium 680 North Lake Shore Drive Suite 608 Chicago, Illinois 60611 RE: Inn at Blackthorn Proposal -10- COMMISSION ACCEPTED THE PROPOSAL FROM THE MANAGEMENT CONSORTIUM FOR THE AIRPORT ECONOMIC DEVELOPMENT AREA CONDITIONED ON RECEIVING REQUIRED FINANCIAL INFORMATION AND EVIDENCE OF SATISFACTORY FINANCING FOR THE PROJECT South Bend Redevelopment Commission IV Regular Meeting - January 19, 1996 6. NEW BUSINESS (Cont.) a. continued... Dear Bill: This letter will serve as acknowledgement that the South Bend Redevelopment Commission accepted your proposal to purchase the 4.46 acre hotel site at Blackthorn Corporate Park, however, subject to certain conditions. The following items represent those conditions listed by issue. When an Event is described by number, it refers to the Events as listed in the Project Schedule included in the Modifications to Proposal letter dated December 8, 1995. Faithful Performance Guaranty The three circumstances identified in the proposal as providing for a refund of the Twelve Thousands ($12,000) performance guaranty submitted with the proposal are the following: (1) the Developer fails to procure the non - compete from the Airport Authority on or before April 30, 1996; (2) the South Bend Common Council fails to award a 10 -year real property tax abatement for the Project on or before April 30, 1996; (3) the State of Indiana fails to fund a grant to the City of South Bend by December 31, 1996, in an amount sufficient to construct the proposed Bypass interchange. Project Schedule The project schedule as listed in Events #1 -13 is acceptable with the following modifications: Event #6, Contract, will be executed by the Management Consortium, Inc. (or nominee, as described in the proposal) and the Commission on or before February 19, 1996, without regard to the timing of Events #4 and #5, Airport Non - Compete and Tax abatement. The Contract will clearly state that the failure by the Developer to to secure those items listed at Events #4 and #5 on or before April 30, 1996, shall cause the termination of the Contract and the return of the faithful performance guaranty to the Developer. If there is a delay in the satisfaction of Events #4 or #5, the date on which the later of these two events is competed will become the new base of measure for Events #7 -13 of the project schedule, as stated in the proposal, however, in no event shall Events #4 and #5 occur later then April 30, 1996. If there is a delay in the satisfaction of Events #4 or #5, the Developer or the Commission may cancel the Contract or agree to revised project schedule. Additionally, after Event #9, Financing commitments, but prior to Event #11, Building permit, the Developer and the Commission shall establish a time and place for the closing of transfer of property from the Commission to the Developer. -11- South Bend Redevelopment Commission Regular Meeting - January 19, 1996 6. NEW BUSINESS (Cont.) a. continued... Airport Non - compete As stated above with regard to both the Faithful Performance Guaranty and the Project Schedule sections, the failure by the Developer to secure the Non - compete from the Airport Authority on or before April 30, 1996 would cancel this proposal and the resulting Contract for Sale of Land and cause the full refund of the performance guaranty. Redevelopment Non - compete The Commission will establish a non - compete covenant, with respect to the land it owns or may acquire, within the Airport Economic Development Area, with the Developer, based on the terms and conditions of the Airport's non - compete (exclusive of any terms regarding compensation paid by the Developer). This represents the full extent of any commitments the Commission can and will make with respect to hotel development within the Airport Economic Development Area. Tax Abatement As stated above with regard to both the Faithful Performance Guaranty and the Project Schedule sections, the failure by the Developer to secure the tax abatement on or before April 30, 1996, would cancel this proposal and the resulting Contract for Sale of Land and cause the full refund of the performance guaranty to the Developer. Bypass Interchange As mentioned previously in the section Faithful Performance Guaranty, the Commission requires that the State of Indiana commit funds sufficient for the construction of the Bypass Interchange project. Without a commitment from the State of Indiana at this level of funding, the Commission cannot commit to construction of the interchange. Financing The proposal did not include some of the required financial information regarding the applicant and the proposed members of a yet to be formed joint venture. This information must be provided to staff prior to the execution of the Contract for Sale of Land. Receipt of this information is a condition of the acceptance of this proposal. Evidence of satisfactory financing must be provided to the Commission prior to the actual transfer of ownership of the property. -12- South Bend Redevelopment Commission Regular Meeting - January 19, 1996 6. NEW BUSINESS (Cont.) a. continued... Joint Venture The Developer should create the joint venture prior to the execution of the Contract for Sale of Land. However, if the joint venture is not created by that time, then the Contract for Sale of Land would be exclusively between The Management Consortium, Inc. and the Commission. The Contract would require the Commission's approval of any nomination or assignment of the Contract to any entity other than The Management Consortium, Inc., including any assignment to the yet to be formed joint venture described in the proposal. If at anytime throughout the period of the Contract, until the Certificate of Completion is approved by the Commission, all changes of ownership of the project, including the addition of equity partners must be approved by the Commission. All financial information requested of Applicants in the Proposal forms must be included with a request to change the ownership of the project. Other Public Incentives Acceptance of the Developer's proposal does not bind the Commission or the City to any obligation to provide "additional public development incentives," beyond those specifically mentioned in this letter. Any suggestion to the contrary, including the statement referenced in correspondence to Jon R. Hunt from William T. Hurst, dated June 20, 1995, page 4 (which was made a part of the proposal by reference) is rejected by the Commission. Licensing Agreement The Developer and the Commission must enter into a separate licensing agreement to allow the use of the Commission's trademark Blackthorn and the Blackthorn "leprechaun" logo. Zoning It has come to our attention that we will need to seek a re- zoning from the City of South Bend for this project. Please understand the South Bend's zoning ordinance actually classifies property in two ways, one, use, and two, height and area. The Hotel site, is currently zoned "D" -Light Industrial and "B "- Height and Area. "Hotels and Motels" are a permitted use in the "D" -Light Industrial zoning, however, the "B" - Height and Area classification limits the site to buildings no taller than forty (40) feet or three (3) stories. We will move forward with the necessary paperwork to begin the rezoning /variance process. While we are confident that this will not be an issue, the failure to secure the necessary rezoning of the parcel is included as a fourth condition under which the faithful performance guaranty would be returned to the Developer and Contract for Sale of Land terminated. Again, we would treat this "circuit- breaker" in the { -13- South Bend Redevelopment Commission Regular Meeting - January 19, 1996 6. NEW BUSINFSS (Cont.) a. continued... Contract in the same matter as the Airport Non - compete, tax abatement and Bypass funding. We are looking forward to seeing this project progress forward. If you have any questions, please call me at 219 - 235 -9371. Thank you. Sincerely, James M. Riggs Blackthorn Project Manager b. Commission approval requested for Resolution No. 1412 approving an application for real property tax deduction for property located at 5820 West E Jay Nimtz Parkway in the Airport Economic Development Area. (The Management Consortium) Mrs. Kolata noted that since the Commission still owes the land for this development, the Commission needs to authorize the signing of the petition for the tax abatement. Upon a motion by Mr. Hunt, COMMISSION AUTHORIZATED OF THE SIGNING OF seconded by Mr. Hojnacki and THE PETITION FOR THE TAX ABATEMENT ON unanimously carried, the Commission BEHALF OF THE MANAGEMENT CONSORTIUM authorizated the signing of the petition for the tax abatement on behalf of The Management Consortium. -14- South Bend Redevelopment Commission Regular Meeting - January 19, 1996 6. NEW BUSINESS (Cont.) b. continued... Mr. Beitzinger read the staff report on the project. The Management Consortium proposes to build a 4 - story, 150 room, full service hotel on approximately 4.5 acres of land in the Blackthom Corporate Office Park area. Each unit will feature a separate parlor and bedroom with 2 TV's, a VCR, computer data ports, stocked mini -bar, refrigerator and microwave. The hotel, which will overlook the 18th hole of the Blackthorn Golf Course, will feature a restaurant with cocktail area, indoor pool, fitness center, business center, conference facilities, spa suites, full room service and courtesy vans between Michiana Regional Transportation Center and the hotel. The total cost of construction is estimated at $10,000,000. It is estimated that this project will result in the creation of fifty three (53) new permanent jobs within the first year, representing a new annual payroll of $1,062,500. The Management Consortium has not been granted any previous tax abatement. The property is properly zoned for the proposed use. The property is not located in an area presently designated as a Tax -15- ®South Bend Redevelopment Commission Regular Meeting - January 19, 1996 6. NEW BUSINESS (Cont.) b. continued... Abatement Impact Area, but is located in the Airport Economic 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's use of the property is not an eligible use for tax abatement purposes; however, the petitioner is respectfully requesting a special consideration of a 10 year real property tax abatement. The petitioner has indicated that the tax abatement is an integral and necessary part of the project. The tax abatement will assist in the cash flow needs of the hotel, especially during the startup years. Once up and running, the hotel will be a catalyst for the area. As future projects are completed and the area becomes further developed, the hotel's utilization will increase proportionately. Additionally, the Blackthorn Golf Course will work to benefit the hotel and the hotel will work to benefit the golf course. Weekend packages will be offered with discount rooms and discount rounds of golf. Lastly, the hotel will be a complete full service hotel offering the latest in amenities. This -16- ®South Bend Redevelopment Commission Regular Meeting - January 19, 1996 6. NEW BUSINESS (Cont.) b. continued... greatly increases the cost and thus the risk for the developers. Without the ten year tax abatement the project simply cannot move forward; therefore, the petitioner is respectfully requesting the special consideration of a ten year real property tax abatement. The staff recommends the Commission to approve this recommendation. There have been other tax abatements previously granted for hotels: Marriott Hotel, Inn America, Old Lathe Works and the East Race Inn A review of the cost of the abatement shows that, without abatement, the project will generate approximately $5,040,400 in new taxes over the ten year period. With abatement, the project will generate approximately $2,545,402. Therefore, the cost of the abatement is approximately $2,494,998 over the ten year period. Upon a motion by Mr. Hcjnacki, seconded by Mr. Hunt and unanimously carried the Commission approved Resolution No. 1412 approving the application for real property tax deduction for property located at 5820 West R Jay Nimtz Parkway in the Airport Economic Development Area. (The Management Consortium) �1 COMMISSION APPROVED RESOLUTION NO. 1412 APPROVING THE APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 5820 WEST F. JAY NIMTZ PARKWAY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (THE MANAGEMENT CONSORTIUM) -17- South Bend Redevelopment Commission Regular Meeting - January 19, 1996 6. NEW BUSINESS (Cont.) C. Commission approval requested for Proposal from Peirce and Associates for Professional Services in the Sample -Ewing Development Area. (Ivy Tech) Mrs. Kolata noted that we need to provide to Ivy Tech an Indiana Land Title survey for the entire parcel that the Commission will be selling to Ivy Tech. Peirce and Associates has submitted a proposal to do the survey and to provide the Commission a copy of the survey drawing and they will stake and flag all corners of the property. The work will be performed at a cost not to exceed $1250. Upon a motion by Mr. Faccenda, seconded by Mr. Hojnacki and unanimously approved, the Commission approved the proposal from Peirce and Associates for Professional Services in the Sample - Ewing Development Area. COMMISSION APPROVED THE PROPOSAL FROM PEIRCE AND ASSOCIATES FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA d. Commission approval requested for Resolution No. 1413 accepting the transfer of real property from the City of South Bend, Indiana. Mrs. Kolata explained that Resolution No. 1413 accepts the transfer of property at 505 W. Washington from the City of South Bend. -18- South Bend Redevelopment Commission Regular Meeting - January 19, 1996 6. NEW BUSEWSS (Cont.) d. continued... Upon a motion by Mr. Hunt, seconded by Mr. Hojnacki and unanimously carried the Commission approved Resolution No. 1413 accepting the transfer of meal property from the City of South Bend, Indiana. e. Commission authorization requested for use of the Palais Royale Ballroom and the Morris Civic Plaza by Michiana Arts & Sciences Council on May 16 -20, 1996 for Carnival of the Arts. Mrs. Kolata explained that Michiana Arts and Sciences Council has asked to use the Palais Royale Ballroom and the Morris Civic Plaza, on May 16 -20, 1996 for Carnival of Arts. The building commissioner and the fire department inspected the building. There are a number of items that need to be repaired before using the building. Michiana Arts & Sciences Council has agreed to pick up the cost for the repairs and provide us with a Certificate of Insurance. The staff recommends approving this request, subject to MASC assuming all costs to meet health and safety codes, making any repairs on teh plaza for damage caused by Carnival, and subject to the Certificate of Insurance naming the City, Commission, and Authoirty as additional insured. Ms. Manier COMMISSION APPROVED THE REQUEST FOR RESOLUTION NO. 1413 ACCEPTING THE TRANSFER OF REAL PROPERTY FROM THE CITY OF SOUTH BEND, INDIANA -19- South Bend Redevelopment Commission Regular Meeting - January 19, 1996 6. NEW BUSINFSS (Cont.) e. continued... suggested that an Agreement be written that outlines all MASC's responsibilities and that this agreement come back to the Commission for approval. Upon a motion by Mr. Hcjnacki, seconded by Mr. Hunt and unanimously carried, the Commission approved the request for the use of Palais Royale Ballroom and the Morris Civic Plaza by Michiana Arts & Sciences Council on May 16 -20, 1996 for Carnival of the Arts, subject to the items listed by staff and requiring a written Agreement to come back to the Commission for approval. f. Commission approval requested for Proposal from Pitcock Design Group for Professional Services in the Airport Economic Development Area. Mrs. Kolata noted that we're asking the Commission to approve the Proposal for Pitcock Design Group to take the Blackthorn Golf Course ad they prepared for the Notre Dame Program and adapt it to the copy needed for the February issue of Midwest Real Estate News that will highlight Indiana. Pitcock will incorporate Blackthorn Corporate Park into the ad. The cost would be COMMISSION APPROVED THE REQUEST FOR THE USE OF PALAIS ROYALE BALLROOM AND THE MORRIS CIVIC PLAZA BY MICHIANA ARTS & SCIENCES COUNCIL ON MAY 16 -20, 1996 FOR CARNIVAL OF THE ARTS, SUBJECT TO THE ITEMS LISTED BY STAFF AND REQUIRING A WRITTEN AGREEMENT TO COME BACK TO THE COMMISSION FOR APPROVAL -20- - , " y a ®South Bend Redevelopment Commission Regular Meeting - January 19, 1996 6. NEW BUSEWSS (Cont.) f. continued... $1200. The ad will be coordinated with the Project Future ad in the same issue. Upon a motion by Mr. Faccenda, seconded by Mr. Hunt and unanimously carried, the Commission approved the proposal from Pitcock Design Group for Professional Services in the Airport Economic Development Area. g. Commission approval requested for Contract Amendment from The Troyer Group for Professional Services in the Sample -Ewing Development Area. Mrs. Kolata explained that The Troyer Group has a contract to provide general planning services as well as project management assistance related to our house move program. The project has required additional time and we are requesting that the contract be amended to add $15,000. Upon a motion by Mr. Hcjnacki, seconded Mr. Hunt and unanimously carried, the Commission approved the Contract Amendment from the Troyer Group for Professional Services in the Sample -Ewing Development Area. COMMISSION APPROVED THE PROPOSAL FROM PITCOCK DESIGN GROUP FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA COMMISSION APPROVED THE CONTRACT AMENDMENT FROM THE TROYER GROUP FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA -21- q "! M South Bend Redevelopment Commission Regular Meeting - January 19, 1996 7. PROGRESS REPORTS Mr. Wolf noted that National Main Street Center wants to feature South Bend as one of the four successful programs in the United States. The four programs will be featured in the Spring issue. Also, Adams Remco had their grand opening downtown. They are a local company and one of the largest copier dealers in the United States. 8. NEXT COMNUSSION MEETING The next meeting of the Redevelopment Commission is scheduled for February 2, 1996 at 10:00 a.m. 9. ADJOURNNUENT 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 10:40 a.m. Paula N. Auburn, President -22- NEXT COMMISSION MEETING ADJOURNMENT Ann E. Kolata, Director