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HomeMy WebLinkAboutRM 06-21-9614 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING June 21, 1996 10:00 a.m. Presiding: Robert W. Hunt Vice - President 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Redevelopment Staff: Business Assistance Staff: Bureau of Housing Staff: Others: 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday, June 7, 1996. 1308 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana Mr. Robert W. Hunt, Vice - President Mr. William P. Hojnacki, Secretary Mr. Michael Donoho Mr. Philip J. Faccenda Ms. Paula N. Auburn, President Ms. Jenny Pitts Manier Mrs. Ann Kolata, Director Mr. James Riggs, Economic Development Specialist Mr. John Stark, Economic Development Specialist Ms. Vangelean Binion, Recording Secretary Mr. Audrew Laurent, Redevelopment Intern Mr. Mike Beitzinger, Economic Development Specialist Mr. Mike Tinny Mr. Jack Colwell, South Bend Tribune Mr. Pat Pinnick, South Bend Heritage Mr. Rick Snyder, Thomas Lowe Ventures (Attorney) Upon a motion by Mr. Hojnacki, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Minutes of June 7, 1996. -1- COMMISSION APPROVED MINUTES OF JUNE 7, 1996 South Bend Redevelopment Commission Regular Meeting - June 21, 1996 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted June 21, 1996 for approval. ADMIN 1996 (212 American Electric Power $340.31 360 Communications $78.54 Insty - Prints $12.00 NBD Bank Visa $37.34 Planners Bookstore $50.00 Gene's Camera Store Inc. $34.67 Business Systems $333.00 SAMPLE- EWING DEVELOPMENT AREA (414 American Electric Power $666.12 Peirce & Associates $2,400.00 York Title & Escrow $150.00 Tri County News $58.10 Thomas General Construction $1,240.00 Grauvogel & Associates $1,495.00 Bud Kile Moving $1,500.00 Joseph & Jacquelyn Percy $1,250.00 St. Joseph County Treasurer $94.90 Hazel Smith $12,437.60 Hazel Smith & Code Enforcement $467.50 Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Claims submitted June 21, 1996 and ordered the checks released. 4. COMMUNICATIONS There were no communications. 5. OLD BUSINESS There was no Old Business -2- COMMISSION APPROVED CLAIMS SUBMITTED FRIDAY, JUNE 21, 1996 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - June 21, 1996 6. NEW BUSINESS a. Commission approval requested for Resolution No. 1437 Approving an Application for Real Property Tax Deduction for property located at 211 -213 South Michigan Street in the South Bend Central Development Area. (Robertson Building) Mr. Beitzinger noted that Robertson's, LLC., proposes to rehabilitate and convert the vacant Robertson's Department Store into a mixed use facility with 80 affordable apartments, 12 market rate apartments, and approximately 8,000 square feet of retail/commercial space on the first floor. The total hard dollar cost of the project is estimated at $6,000,000. In support of the tax abatement request, Robertson's, LLC. , has noted that this project exceeds the required minimum rehabilitation dollar amount by more than ten times, and notes that 85 % of the apartments will be leased to low or moderate income tenants, far exceeding the 20% minimum requirement, and will also result in generating new taxes (because the building is currently government owned) of more than $11, 000 per year even with the abatement. Per the petition, it is estimated that this project will create two (2) new permanent full-time jobs within the first year, representing an -3- South Bend Redevelopment Commission Regular Meeting - June 21, 1996 6. NEW BUSINESS (Cont.) a. continued... annual payroll of $44,000 and will also create a number of new jobs associated with the retail/commercial space, however these numbers cannot be predicted at this time. Review of this petition for tax abatement finds that South Bend Heritage Foundation have not been granted any previous abatement consideration, however, South Bend Heritage Foundation has been associated with two previous tax abatements. The first was granted in August of 1992. The second was granted in January 1995. In each of the previous tax abatements they are in compliance with the reporting requirements. The property has been rezoned for the proposed use. A review of the tax abatement areas finds that the property is located in an area presently designated as a Tax Abatement Impact Area, as well as the Economic Development Target Area and the Central Business District. A review of the Redevelopment areas finds that the property is located in the South Bend Central Development area, which is a Tax Incremental Allocation Area, therefore, the petition first requires the approval of the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that Robertson's, LLC., meets the qualifications for a -4- South Bend Redevelopment Commission Regular Meeting - June 21, 1996 6. NEW BUSINESS (Cont.) a. continued.... ten (10) year real property tax abatement. With a project cost estimated at $6,000,000, using a combined tax rate factoring in the state replacement tax credit, total taxes are estimated to be $2,811,440. The estimated amount to be abated is $1,391,663, and the estimated amount of taxes paid during the 10 years of the abatement is $1,419,777. IL Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1437 Approving an Application for Real Property Tax Deduction for property located at 211 -213 South Michigan Street in the South Bend Central Development Area. (Robertson's Building) b. Commission approval requested for Resolution No. 1438 Approving an Application for Real Property Tax Deduction for Lot 14, Toll Road Industrial Park in the Airport Economic Development Area. (Thomas E. Lowe) Mr. Beitzinger noted that Thomas Lowe Ventures, Inc. is a rapidly growing distributor of miniature -5- COMMISSION APPROVED RESOLUTION NO. 1437 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 211 -213 SOUTH MICHIGAN STREET IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (ROBERTSON'S BUILDING) South Bend Redevelopment Commission Regular Meeting - June 21, 1996 6. NEW BUSINESS (Cont.) b. continued.... collectibles and toy products. The company has established national distribution of licensed products to most major mass merchandisers including Toy -R -Us, Walmart, etc. Their project calls for the construction of a 25,000 square foot warehouse /office building on 4.8 acres of land in the Toll Road Industrial Park. The office area will house the company's national headquarters and the warehouse will be used as a staging and distribution center for products that are not directly shipped to customers. The total projected cost of the building is $900,000. Per the petition, it is estimated that this project will create thirty (30) new permanent full-time jobs within the first year, representing an annual payroll of $1,400,000. A review of the tax abatements previously granted finds that Thomas E. Lowe Ventures has not been granted any previous tax abatements. A review of the petition finds that the property is properly zoned for the proposed use. A review of the tax abatement areas finds that the property is not located in an area presently designated as a Tax Abatement Impact Area, nor is the property located in the Economic Development Target Area. A review of the Redevelopment areas finds that 10V South Bend Redevelopment Commission Regular Meeting - June 21, 1996 6. NEW BUSINESS (Cont.) b. continued.... the property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area, therefore, the petition first requires the approval of the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that Thomas E. Lowe Ventures, Inc. meets the qualifications for a three (3) year real property tax abatement. With a project cost of $900,000, using a combined tax rate factoring in the state replacement tax credit, the taxes generated during the three year period is approximately $126,109. The estimated amount to be abated is approximately $83,652, and the taxes paid during the three years of the abatement is $42,457. Mr. Rick Snyder — Thomas Lowe's attorney —noted that this is a rapidly growing company that will probably double in size next year. Mrs. Kolata noted that this is a piece of property that is located in the Toll Road Industrial Park, immediately west of Midwest Embroidery -7- South Bend Redevelopment Commission Regular Meeting - June 21, 1996 6. NEW BUSINESS (Cont.) b. continued.... Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1438 Approving an Application for Real Property Tax Deduction for Lot 14, Toll Road Industrial Park in the Airport Economic Development Area. (Thomas E. Lowe) C. Commission approval requested for Addendum to Amended and Restated Lease Between the South Bend Redevelopment Authority and South Bend Redevelopment Commission Dated as of August 1, 1990. Mrs. Kolata noted that the lease refers to the lease that is tied to the Airport Taxable and Tax Exempt Bond Issues —which were used to purchase land in the Airport Area. This addendum removes from the lease, the land in the Blackthorn Corporate Park, which has been sold. As the land was sold, money was deposited with the Bond Trustee to defease the bonds. Mrs. Kolata also noted that the staff expects to return to the Commission with a subsequent addendum to the lease to take out the land in the Toll Road Industrial Park that has been COMMISSION APPROVED RESOLUTION NO. 1438 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR LOT 14, TOLL ROAD INDUSTRIAL PARK IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (THOMAS E. LOWE) South Bend Redevelopment Commission Regular Meeting - June 21, 1996 6. NEW BUSINESS (Cont.) C. continued.... sold and to also reduce the semi - annual lease payments. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Addendum to Amended and Restated Lease Between the South Bend Redevelopment Authority and South Bend Redevelopment Commission Dated as of August 1, 1990. d. Commission approval requested for proposal from J.F. New & Associates, Inc. for professional services in the Airport Economic Development Area. Mrs. Kolata noted that J.F. New & Associates has submitted a proposal regarding a design for a constructed wetland for storm water treatment, to serve the Blackthorn Office Park. Mr. Riggs explained that the area is immediately north of both the Nephrology and Sullivan sites in the Blackthorn Corporate Park. J.F. New Associates will provide design plans and specifications that will include sufficient detail for agency review and construction. Mrs. Kolata noted that there are COMMISSION APPROVED THE ADDENDUM TO AMENDED AND RESTATED LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT AUTHORITY AND SOUTH BEND REDEVELOPMENT COMMISSION DATED AS OF AUGUST 1, 1990 South Bend Redevelopment Commission Regular Meeting - June 21, 1996 6. NEW BUSINESS (Cont.) d. continued.... revisions in the proposal that need to be made: the first provision to be stricken from the proposal, is located on the first page. The proposal was written to the Department of Economic Development and the revision should be written to the City of South Bend, Department of Redevelopment; the second provision to be stricken from the provision, states that the City of South Bend, Department of Redevelopment would pay interest if payments are paid late; the next provision is item F. located on the next to the last page of the proposal to be stricken from the provision regarding arbitration; the last provision to be stricken from the proposal is located on the last page regarding the signature line, the revision should state, the Department of Redevelopment. Upon a motion by Mr. Faccenda, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the proposal from J.F. New & Associates, Inc. for professional services in the Airport Economic Development Area as revised. -10- COMMISSION APPROVED THE PROPOSAL FROM J.F. NEW & ASSOCIATES, INC. FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AS REVISED South Bend Redevelopment Commission Regular Meeting - June 21, 1996 6. NEW BUSINESS (Cont.) e. Commission approval requested for proposal from Williams Aerial Mapping, for professional services in the Airport Economic Development Area. Mrs. Kolata noted that this proposal from Williams Aerial & Mapping, Inc. is to provide aerial photography and enlargements of an area bounded by the St. Joseph River on the East, Sycamore Road on the West, Indiana State Line on the North and Douglas Road on the South (site). The cost for these services in estimated at $3,500. Mrs. Kolata also noted that there was a provisions that need to be made in the proposal. The proposal stated that there would be a service charge for late payments and this should be stricken from the proposal. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission approved the proposal from Williams Aerial & Mapping, for professional services in the Airport Economic Development Area as revised. f. Commission approval requested for proposal from EIS Environmental Engineers Inc. for professional services in the Sample -Ewing Development Area. -11- COMMISSION APPROVED THE PROPOSAL FROM WILLIAMS AERIAL & MAPPING. FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC AS REVISED South Bend Redevelopment Commission Regular Meeting - June 21, 1996 6. NEW BUSINESS (Cont.) f. continued.... Mrs. Kolata noted that this proposal is for a property that is currently owned by Hamilton Towing. The property is located at 917 S. Lafayette, which is at the corner of Lafayette and Tutt Street, just south of the new Design Packaging. A Phase I Assessment was previously completed, but the environmental firm did not go into the property, they only did a records search. Mrs. Kolata noted that the staff has spoken with Hamilton Towing to discuss purchase of the property. Hamilton Towing will allow an environmental firm to come in and look at the interior of both the building and the storage yard. Mrs. Kolata explained that while in the building, EIS will also look for asbestos and test for it if appropriate. They will also take a sample from a monitoring well located on the property. The total cost for this work is estimated at $2,400, plus $20.00 per sample for any asbestos sample that is taken. -12- South Bend Redevelopment Commission Regular Meeting - June 21, 1996 6. NEW BUSINESS (Cont.) f. continued.... Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission approved the proposal from EIS Environmental Engineers Inc. for professional services in the Sample - Ewing Development Area. g. Staff report on acquisition of property in the Sample -Ewing Development Area. Mrs. Kolata noted that there are four counter offers that the staff received. The first is a residential property located at 624 E. Keasey Street. The counter offer is from Clinton and Ruth Mack in the amount of $14,750. The original purchase offer was $13,250. The staff recommends accepting the counter offer. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission accepted the counter offer from Clinton and Ruth Mack in the amount of $14,750 for the property located at 624 E. Keasey Street. The next is a residential property located at 615 Wenger St. The counter offer is in the amount of $ 16,750 from Tommie and Rebecca Swinson. The original purchase price was in the amount of $15,250. -13- COMMISSION APPROVED THE PROPOSAL FROM EIS ENVIRONMENTAL ENGINEERS INC. FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA COMMISSION ACCEPTED THE COUNTER OFFER FROM CLINTON AND RUTH MACK IN THE AMOUNT OF $14,750 FOR THE PROPERTY LOCATED AT 624 E. KEASEY STREET South Bend Redevelopment Commission Regular Meeting - June 21, 1996 6. NEW BUSINESS (Cont.) g. continued.... Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission accepted the counter offer from Tommie and Rebecca Swinson in the amount of $16,750 for the residential property located at 615 Wenger St. The next is a vacant lot that is described as Lot #117 Whiteman Court. The counter offer is from Tommie and Rebecca Swinson in the amount of $1,000. The original purchase offer was $800.00. The staff recommends accepting the counter offer. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission accepted the counter offer from Tommie and Rebecca Swinson for the vacant lot described as Lot #117 Whiteman Court. The last is a residential property located at 611 Wenger St. The counter offer is from Hazel Smith in the amount of $13,000. The original purchase offer was $11,000. The staff recommends accepting the counter offer. -14- COMMISSION ACCEPTED THE COUNTER OFFER FROM TOMMIE AND REBECCA SWINSON IN THE AMOUNT OF $16,750 FOR THE RESIDENTIAL PROPERTY LOCATED AT 615 WENGER ST. COMMISSION ACCEPTED THE COUNTER OFFER FROM TOMMIE AND REBECCA SWINSON FOR HE VACANT LOT DESCRIBED AS LOT #117 WHITEMAN COURT South Bend Redevelopment Commission Regular Meeting - June 21, 1996 6. NEW BUSINESS (Cont.) g. continued.... Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission accepted the counter offer from Hazel Smith in the amount of $13,000 for residential property located at 611 Wenger St. h. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 915 1/2 W. LaSalle. (Jolene K. Newton) Mrs. Kolata noted that this Certificate of Waiver forgives $352.90 per year for each of eight years as of November 13, 1988, 1989, 1990, 1991, 1992, 1993, 1994 and 1995. The staff recommends approving the Certificate of Waiver. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver for Jolene K. Newton for property located at 915 1/2 W. LaSalle in the amount of $352.90 for each of eight years as of November 13, 1988, 1989, 1990, 1991, 1992, 1993, 1994 and 1995. -15- COMMISSION ACCEPTED THE COUNTER OFFER FROM HAZEL SMITH IN THE AMOUNT OF $13,000 FOR A RESIDENTIAL PROPERTY LOCATED AT 611 WENGER ST. COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR JOLENE K. NEWTON FOR PROPERTY LOCATED AT 915 1/2 W. LASALLE IN THE AMOUNT OF $352.90 FOR EACH OF EIGHT YEARS AS OF NOVEMBER 13, 1988, 1989, 1990, 1991, 1992, 1993, 1994 AND 1995 South Bend Redevelopment Commission Regular Meeting - June 21, 1996 6. NEW BUSINESS (Cont.) i. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 1010 W. Washington Avenue. (Timothy A. Mathias) Mrs. Kolata noted that this Certificate of Waiver forgives $1,740 as of May 5, 1996. The staff recommends approving the Certificate of Waiver. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver for Timothy A. Mathias for property located at 1010 W. Washington Avenue in the amount of $1,740 as of May 5, 1996. j. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 120 N. Walnut. (Viola Robinson) Mrs. Kolata noted that the loan to Viola Robinson is in the amount of $3,550 at 1.00% interest for five years with monthly payments of $62.04. The grant is in the amount of $3,390.75. -16- COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR TIMOTHY A. MATHIAS FOR PROPERTY LOCATED AT 1010 W. WASHINGTON AVENUE IN THE AMOUNT OF $1,740 AS OF MAY 5, 1996 South Bend Redevelopment Commission Regular Meeting - June 21, 1996 6. NEW BUSINESS (Cont.) j. continued.... Upon a motion by Mr. Faccenda, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property located at 120 N. Walnut. (Viola Robinson) k. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 3706 W. Huron. (Audrey Laskowski) Mrs. Kolata noted that the loan to Audrey Laskowski is in the amount of $5,950 at 0.00% interest for 10 years with monthly payments of $49.58. The grant is in the amount of $5,777.75. Upon a motion by Mr. Hojnacki, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property located at 3706 W. Huron. (Audrey Laskowski) 1. Commission approval requested for request from Midwest Land Company, Inc. to exercise Option for Purchase of the "North Adjacent Parcel" described in the Contract for Sale of Land for Private Redevelopment dated -17- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 120 N. WALNUT (VIOLA ROBINSON) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 3706 W. HURON (AUDREY LASKOWSKI) South Bend Redevelopment Commission Regular Meeting - June 21, 1996 6. NEW BUSINESS (Cont.) 1. continued.... December 19, 1995 between The South Bend Redevelopment Commission ( "Commission ") and Midwest Land Company ( "Developer ") referred to as the ( "Contract "). Mrs. Kolata noted that this is related to the Bowne Printing project that is expected to start construction about August 1, 1996. Midwest Land Company did not originally intend to exercise this option so quickly, but Midwest Land Company felt the land was needed. The Redevelopment Commission would sell the land to Midwest Land Company for $1.00. Upon a motion by Mr. Donoho, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the request from Midwest Land Company, Inc. to exercise Option for Purchase of the "North Adjacent Parcel" described in the Contract for Sale of Land for Private Redevelopment dated December 19, 1995 between The South Bend Redevelopment Commission ( "Commission ") and Midwest Land Company ( "Developer ") referred to as the ( "Contract "). m. Mrs. Kolata asked that item 6.m. be postponed until the next meeting. m COMMISSION APPROVED THE REQUEST FROM MIDWEST LAND COMPANY, INC. TO EXERCISE OPTION FOR PURCHASE OF THE "NORTH ADJACENT PARCEL" DESCRIBED IN THE CONTRACT FOR SALE OF LAND FOR PRIVATE REDEVELOPMENT DATED DECEMBER 19, 1995 BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION ( "COMMISSION ") AND MIDWEST LAND COMPANY ( "DEVELOPER ") REFERRED TO AS THE ( "CONTRACT ") T South Bend Redevelopment Commission Regular Meeting - June 21, 1996 7. PROGRESS REPORTS Mrs. Kolata noted that Design Packaging is having a "Grand Opening Celebration" Thursday, June 27, 1996 at 11:00 a.m. 8. NEXT COMIVIISSION MEETING The next Meeting of the Redevelopment Commission is scheduled for Wednesday, July 3, 1996 at 10:00 a.m. This is a rescheduled meeting, taking the place of the meeting originally scheduled for July 5th. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Hunt made a motion that the meeting be adjourned. Mr. Donoho seconded the motion and the meeting was adjourned at 10:3 a In. Paula N. Auburn, President IMM NEXT COMMISSION MEETING - JULY 5T14 ADJOURNMENT e� -or& Ann E. Kolata, birector