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Home My WebLink AboutRM 03-15-96SOUTH BEND REDEVELOPMENT COMNIISSION REGULAR MEETING March 15, 1996 1308 County -City Building 10:00 a.m. 227 W. Jefferson Boulevard Presiding: Paula N. Auburn South Bend, Indiana President 1. ROLL CALL Members Present: Ms. Paula N. Auburn, President Ms. Robert W. Hunt, Vice - President Mr. William P. Hojnacki, Secretary Mr. Michael Donoho Members Absent: Mr. Philip J. Faccenda Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann Kolata, Director Mr. James Riggs, Economic Develop. Specialist Mrs. Cheryl Phipps, Recording Secretary Ms. Vangelean Binion, Secretary Media: Mr. Don Porter, South Bend Tribune Others: Mr. Carter Wolf, Center City Associates Mr. John Julien, H.J. Umbaugh Ms. Kim McCampbell, Nephrology, Inc. Mr. Randy Rompola, Baker & Daniels Mr. Rich Hill, Baker & Daniels Mr. Joseph Dzierla 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday, March 1, 1996 Upon a motion by Mr. Donoho, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, March 15, 1996. -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, MARCH 1, 1996 South Bend Redevelopment Commission Regular Meeting - March 15, 1996 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted March 15, 1996, for approval. ADMIN 1996 (212 NBD Bank - VISA $119.90 Petty Cash $40.17 Gene's Camera Store $120.54 Hedy Robinson $106.00 Mobile Comm $10.15 Sprint Cellular $72.85 American Planning Association $60.00 General Fund: Printing $167.84 AIRPORT TIF REVENUE (324) Pitcock Design Group $1,294.80 SAMPLE - EWING DEVELOPMENT AREA (414) Troyer Group $836.13 Envirocorp $2,719.85 Peirce & Associates $1,876.00 Thomas General Construction $645.00 Thomas C. & Sumiko VanBelle $12,400.44 St. Joseph County Treasurer $1,938.49 Charles Chambliss $61.00 Myrtha Fultz $118.00 John C. & Jean Guisinger $520.87 Myrtha Hudson $13,815.21 Lucius & Barbara Hudson and Polack Realty $1,000.00 Bud Magee $995.87 Eules Wilson $446.87 Lucius Hudson $695.87 John T. & Pamela R. Garn $9,578.39 Eules & Lillie Lee Wilson $28,878.89 Lucius & Barbara L. Hudson $13,285.10 Petty Cash $228.69 Larry Minkoff $845.00 BLACKTHORN GOLF COURSE (6191 North American Golf $6,450.00 „► -2- South Bend Redevelopment Commission Regular Meeting - March 15, 1996 3. APPROVAL OF CLAIMS (Cont.) Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission approved the Claims submitted March 15, 1996. 4. COMMUNICATIONS There were no communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS a. Staff report on disposition of property in the Airport Economic Development Area. Mr. Riggs noted that the Commission has received a proposal from Nephrology, Inc. to purchase and develop a 4.5 acre parcel of land in the Blackthorn Corporate Park. The purchase price is $123,750, which is $27,500 per acre, the highest received so far. Nephrology proposes to construct a 14,000 square foot, single -story medical facility. The facility will be designed specifically for the delivery of Renal Replacement Therapy for patients diagnosed with End Stage Renal Disease. Nephrology anticipates that the facility will open at 100% of its capacity. It will have twenty - four dialysis machines on site and will be open six days a week. The proposed facility will be the forth facility for Nephrology. The three other -3- COMMISSION APPROVED THE CLAIMS SUBMITTED MARCH 15, 1996 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - March 15, 1996 6. NEW BUSINESS (Cont.) a. Continued.... facilities are located in Mishawaka, Elkhart, and LaPorte. The project is estimated to create 20 to 25 new jobs for the community. The required 10% faithful performance guaranty in the amount of $12,375 has been submitted. Construction is expected to start by June 1, 1996 with project completion by December 30, 1996. Nephrology has requested assistance with some earth moving and site preparation costs that are due to existing conditions on the site which require additional costs. Nephrology requests that $10,000 be reserved from sales proceeds to be put into an escrow account to be used for the costs. Nephrology has also requested a survey of the site. Mrs. Kolata noted that the staff is pleased about the project and the construction time schedule. The staff recommends acceptance of the proposal as outlined in the staff report. Mrs. Auburn agreed that the facility will be an excellent addition to the Blackthorn Park. Upon a motion by Mr. Donoho, seconded by Mr. Hunt and unanimously carried, the Commission accepted the proposal from Nephrology, Inc. (as outlined in the staff report) for the disposition of land in the Airport Economic Development Area. b. Commission approval requested for Resolution No. 1422 authorizing the issuance and sale of special taxing district -4- COMMISSION ACCEPTED THE PROPOSAL FROM NEPHROLOGY, INC. (AS OUTLINED IN THE STAFF REPORT) FOR THE DISPOSITION OF LAND IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - March 15, 1996 6. NEW BUSINESS (Cont.) b. Continued.... refunding bonds of the South Bend Redevelopment District for the purpose of advance refunding the City of South Bend Redevelopment District Bonds of 1990. Randy Rompola, Baker & Daniels, explained that Resolution No. 1422 is related to the refinancing of the 1990 Studebaker Corridor Bond. It authorizes the City to sell bonds on behalf of the Commission and sets out the parameters for the bond: an amount not to exceed $5,500,000, a maximum interest rate of 8 % and a final maturity date of February 1, 2006. It states that the Commission will adhere to certain covenants to maintain the tax- exempt status on the bonds. It also requires that the City provide continuing disclosure through certain annual reports and notices. The resolution also designates Norwest Bank as registrar and paying agent and establishes an escrow account from which to pay out the bond proceeds. The resolution also authorizes the reimbursement of any expenses relating to the bonds which are incurred prior to the issuance of the bonds. John Julien, H.J. Umbaugh & Associates, explained the financing. It will be a negotiated sale which means that we will select a date for the sale whenever we feel the interest rate is most advantageous. The bond resolution approves the Official Statement which is a compilation of disclosures about the City and the Redevelopment District and describes the -5- South Bend Redevelopment Commission Regular Meeting - March 15, 1996 6. NEW BUSINESS (Cont.) b. Continued... financing. The Official Statement will be used in selecting and negotiating with the underwriter of the bond. It will also be used by the rating agency to establish a credit rating for this financing. It will also be submitted to bond insurance companies in case the underwriter wants to secure insurance. Mrs. Kolata explained that the reason for deciding to do a negotiated sale is that a negotiated sale allows us the watch the market and pick the most opportune time for the sale. H.J. Umbaugh will send out RFPs to solicit three or four underwriters interested in negotiating the sale. Ms. Auburn asked the amount of the estimated savings. Mrs. Kolata responded that the estimated savings will be $175,000. Since this bond is tax exempt, we can only refinance it one time. We don't need to complete the refinancing if the savings aren't going to be signficant. Upon a motion by Mr. Hunt, seconded by Mr. Hojnacki and unanimously carried the Commission approved Resolution No. 1422 authorizing the issuance and sale of special taxing district refunding bonds of the South Bend Redevelopment District for the purpose of advance refunding the City of South Bend Redevelopment District Bonds of 1990. c. Commission approval requested for proposal from Peirce & Associates for In CON MISSION APPROVED RESOLUTION NO. 1422 AUTHORIZING THE ISSUANCE AND SALE OF SPECIAL TAXING DISTRICT REFUNDING BONDS OF THE SOUTH BEND REDEVELOPMENT DISTRICT FOR THE PURPOSE OF ADVANCE REFUNDING THE CITY OF SOUTH BEND REDEVELOPMENT DISTRICT BONDS OF 1990 South Bend Redevelopment Commission Regular Meeting - March 15, 1996 6. NEW BUSINESS (Cont.) c. Continued... professional services in the Airport Economic Development Area. (Survey and Engineering) Mrs. Kolata explained that Peirce & Associates has submitted a proposal to perform the survey and subdivision work related to the Nephrology property, and to a road located to the west of Nephrology project. The fee for this scope of services is $12,700. Mrs. Kolata explained that it is important to get the road designed at this time, to determine from an engineering standpoint where the road will be located and what grade it will be at, so that the lots surrounding the cul -de -sac can be graded properly. Upon a motion by Mr. Hojnacki, seconded by Mr. Hunt and unanimously carried the Commission approved the Proposal from Peirce & Associates for professional services in the Airport Economic Development Area. d. Commission authorization requested for the Executive Director to sign an application for rezoning and petition for real property tax abatement for the former Robertson's building. Mrs. Kolata noted that she has received a letter from Steve Luecke at South Bend Heritage Foundation. -7- COMMISSION APPROVED THE PROPOSAL FROM PEIRCE & ASSOCIATES FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - March 15, 1996 6. NEW BUSINESS (Cont.) d. Continued.... Mrs Kolata also noted that South Bend Heritage Foundation is in the process of preparing a proposal to the Commission for purchasing the Robertson's Building, so they can proceed with the project that has received some funding through Federal Housing Tax Credits. South Bend Heritage Foundation is asking that the Commission begin the rezoning and the tax abatement process. The building is currently zoned C- Commercial. They would propose to rezone it to A -3 which would allow residential above and retail on the first floor. They are also asking that we apply for a ten year tax abatement for the project. The tax abatement is critical to the success of the project in the early years. They would like the documents to be filed as soon as possible in order to start construction in July or August. South Bend Heritage Foundation will soon submitt a proposal for the property to the Commission. Upon a motion by Mr. Hojnacld, seconded by Mr. Donoho and unanimously carried, the Commission authorized the Executive Director to sign an application for rezoning and petition for real property tax abatement for the former Robertson's building. e. Commission approval requested for Contract with St. Joseph County Airport Authority for relocation services. Mrs. Kolata noted that UPS will be building H COMMISSION AUTHORIZED THE EXECUTIVE DIRECTOR TO SIGN AN APPLICATION FOR REZONING AND PETITION FOR REAL PROPERTY TAX ABATEMENT FOR THE FORMER ROBERTSON'S BUILDING South Bend Redevelopment Commission Regular Meeting - March 15, 1996 6. NEW BUSINESS (Cont.) e. Continued.... a new building at a location off of Lathrop on property owned by the Airport. There is currently a house on the property that the Airport Authority is acquiring and a tenant occupying the house. The Airport Authority requested that Redevelopment handle the relocation of the tenant. Redevelopment proposed relocating the tenant for a fee of $750.00. The staff recommends approving the contract. Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission approved the Contract with the St. Joseph County Airport Authority for relocation services. f. Staff report on acquisition of property in the Sample -Ewing Development Area. Mrs. Kolata noted that the staff has received six counter offers for property in the Sample -Ewing Development Area. The first is for a vacant lot #50 located on Wenger St. The counter offer is from Gene Wilkeson in the amount of $1,500.00. The original purchase offer was $1,050.00 The staff recommends accepting the counter offer based on negotiation with the property owner. COMMISSION APPROVED THE CONTRACT WITH THE ST. JOSEPH COUNTY AIRPORT AUTHORITY FOR RELOCATION SERVICES Upon a motion by Mr. Hunt, seconded by COMMISSION ACCEPTED THE COUNTER OFFER Mr. Donoho and unanimously carried, the FROM GENE WILICESON IN THE AMOUNT OF Commission accepted the counter offer $1,500.00 FOR VACANT LOT #50 ON WENGER from Gene Wilkeson in the amount of ST. 91 South Bend Redevelopment Commission Regular Meeting - March 15, 1996 6. NEW BUSD ESS (Cont.) f. Continued.... $1,500.00 for the vacant lot #50 located on Wenger St. The next is a tenant occupied, residential house, located at 623 Wenger St. The counter offer is from Gene Wilkeson and Ellen Wilkeson in the amount of $26,000.00. The purchase offer was $22,250.00. The staff recommends accepting the counter offer. Upon a motion by Mr. Hunt, seconded by COMMISSION ACCEPTED THE COUNTER OFFER Mr. Donoho and unanimously carried, the FROM GENE WILMON AND ELLEN WH ICESON from Gene A. Wilkeson and Ellen M. IN THE AMOUNT OF $26,000 FOR THE PROPERTY Wilkeson in the amount of $26,000 for the LOCATED AT 623 WENGER Sr. property located at 623 Wenger St. ew The next is for a vacant lot at 614 Keasey St. The counter offer was from George Lee Frison and Emma L. Frison in the amount of $1,000.00. The original purchase offer was $563.00. 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 George Lee Frison and Emma L. Frison in the amount of $1,000 for the vacant lot located at 614 Keasey St. The next is for a residential property at 1215 Whiteman Ct. The counter offer is from Bud Magee in the amount of $1,000.00. The purchase offer was $975.00. The staff recommends accepting the counter offer. -10- COMMISSION ACCEPTED THE COUNTER OFFER FROM GEORGE LEE FRISON AND EMMA L. FRISON IN THE AMOUNT OF $1,000 FOR THE VACANT LOT LOCATED AT 614 KEASEY ST. South Bend Redevelopment Commission Regular Meeting - March 15, 1996 6. NEW BUSINESS (Cont.) L Continued.... Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission accepted the counter offer from Bud Magee in the amount of $1,000.00 for the vacant lot located at 1215 Whiteman Ct. The next is a tenant occupied, house located at 612 Keasey St. The counter offer is from George Lee Frison and Emma L. Frison in the amount of $17,000.00. The purchase offer was in the amount of $14,500.00. The staff recommends accepting the counter offer. co Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission accepted the counter offer from George Lee Frison and Emma L. Frison in the amount of $17,000.00 for the property located at 612 Keasey St. The next is for a tenant occupied residential property located at 1114 S. Rush St. The counter offer is from George Lee Frison and Emma Frison in the amount of $13,000.00. The original purchase offer was $10,500.00 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 George Lee Frison and Emma Frison in the amount of $13,000.00 for the property located at 1114 S. Rush St. -11- COMMISSION ACCEPTED THE COUNTER OFFER FROM BUD MAGEE IN THE AMOUNT OF $1,000.00 FOR THE VACANT LOT LOCATED AT 1215 WHITEMAN CT. COMMISSION ACCEPTED THE COUNTER OFFER FROM GEORGE LEE FRISON AND EMMA L. FRISON IN THE AMOUNT OF $17,000 FOR THE PROPERTY LOCATED AT 612 I EASEY ST. COMMISSION ACCEPTED THE COUNTER OFFER FROM GEORGE LEE FRISON AND EMMA FRISON IN THE AMONT OF $13,000.00 FOR THE PROPERTY LOCATED AT 1114 S. RUSH ST. South Bend Redevelopment Commission Regular Meeting - March 15, 1996 7. PROGRESS REPORTS Mrs. Kolata reported that the new PROGRESS REPORTS Bankruptcy Court is now under construction. Mrs. Kolata also reported that the State of Indiana has granted the City $4.9 million for the interchange from the US 31 Bypass to Nimtz Parkway. Redevelopment has the responsiblity to design it before the end of the summer so it can go out for bid. Some grading work probably will be done this year and paving will be completed by early 1997. This interchange was a key issue for both the new hotel and Nephrology when submitting proposals for their locations. Mrs. Kolata reported that the South Bend Regional Museum of Art and Century Center Addition/Renovation received the "1995 Excellence in Construction Public Building Award" from the Michiana Area Construction Industry Advancement Fund. Mr. Wolf announced "Celebrate St. Patrick Day Downtown" will begin at 11:30 today at Century Center. Mr. Wolf stated that "The Blues Review" is scheduled for Friday, March 22, 1996 at Union Station. Mr. Wolf noted that the "Strategic Plan" for downtown was recently completed. Mr. Wolf also stated Century City's intention to present and discuss the plan with the Commission. -12- f � � South Bend Redevelopment Commission Regular Meeting - March 15, 1996 8. NEXT COMIVIISSION MEETING: The next meeting of the Redevelopment Commission is a Rescheduled Regular Meeting on March 29, 1996 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Hojnacki made a motion that the meeting be adjourned. Mr. Donoho seconded the motion and the meeting was adjourned at 10:40 a.m. L Paula N. Auburn, President -13- NEXT COMMISSION MEETING � • i17�ITi�i�l1Y Ll z'�� Ann E. Kolata, Director