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HomeMy WebLinkAboutRM 07-19-96SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING July 19, 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. Philip J. Faccenda Members Absent: Mr. Michael Donoho Legal Counsel: Mr. Richard Nussbaum Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Vangelean Binion, Recording Secretary Media: Mr. Don Porter, South Bend Tribune Bureau of Housing: Ms. Sandy Saunders Others: Mr. Carter Wolf, Center City Associates Ms. Jackie Horvath, Charles S. Hayes, Inc. Ms. Auburn announced that the Executive Session will continue immediately following adjournment of the Regular Commission meeting. 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday, July 19, 1996. Upon a motion by Mr. Hojnacki, seconded by COMMISSION APPROVED THE MINUTES OF Mr. Hunt and unanimously carried, the JULY 3, 1996 Commission approved the Minutes of the Regular Meeting of July 3, 1996. -1- IL South Bend Redevelopment Commission Regular Meeting - July 19, 1996 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted July 19, 1996, for approval. 360 Communications $65.90 Dept. of Engineering $395.55 R. C. Blake & Associates $1,790.00 Thomas General Construction $35.00 South Bend Drafting Supply $19.75 Marty Scharffs Deli $39.40 Tri County News $40.13 South Bend Tribune $41.32 Mobile Comm $20.15 Candy Man Inc. /Coffee Time Services $40.17 Petty Cash $53.35 Watterud Inc. $127.80 Baker & Daniels $312.00 E.D.I.T. (4081 Herman & Goetz Inc. $1,598.06 SAMPLE- EWING DEVELOPMENT AREA (414 Thomas General Construction $670.00 Tri County News $52.50 Torok Excavating & Demolition $200.00 Grauvogel & Associates $1,885.00 Clinton & Ruth Mack & York Title & Escrow $21,057.00 York Title & Escrow $100.00 Petty Cash (Recording Fees) $272.00 Eules & Lillie Lee Wilson $86.76 Gene Wilkeson & Joseph & Jacquelyn Percy $500.00 Joseph & Jacquelyn Percy $149.10 American Electric Power $17.53 Augusta Page and York Title and Escrow, Inc. $20,500.00 Augusta Page and York Title and Escrow, Inc. $24,211.00 Tommy and Rebecca Swinson and York Title and Escrow, Inc. $18,922.00 Tommy and Rebecca Swinson #1 $725.00 Tommy and Rebecca Swinson #2 $725.00 S.B.C.D.A. T.I.F. GENERAL ACCOUNT(420) Walker Parking Consultants $2,082.96 -2- South Bend Redevelopment Commission Regular Meeting - July 19, 1996 3. APPROVAL OF CLAIMS (Cont.) Upon a motion by Mr. Hunt, seconded by Mr. COMMISSION APPROVED CLAIMS SUBMITTED Hojnacki and unanimously carried, the Commission JULY 19, 1996 AND ORDERED CHECKS TO BE approved the Claims submitted July 19, 1996 and RELEASED ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS THEM WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS a. Public Hearing on Resolution No. 1442, a Supplemental Appropriation Resolution of the South Bend Redevelopment District (Airport Economic Development Area). Mrs. Kolata asked that the following documents should be entered into the record: (1)An original of the Notice of Public Hearing for the Airport Economic Development Area; (2)Proofs of Publication that the Notice was published in both the Tri- County News and the South Bend Tribune on July 5, 1996. There was no objection and the items were entered into the record. Mrs. Kolata noted that when the notices were published the appropriation was listed in the amount of $1,305,000. The actual amount to be appropriated by Resolution No. 1442 is $1,280,931.00. It will be used to pay for lease payments associated with the bond issues in the Airport Economic Development Area as well -3- South Bend Redevelopment Commission Regular Meeting - July 19, 1996 6. NEW BUSINESS (Cont.) a. continued as for some direct expenditures in the Airport Economic Development Area. Ms. Auburn opened the public hearing for anyone who wished to speak on the proposed appropriation. There was no one who wanted to speak so Ms. Auburn closed the Public Hearing for whatever action the Commission wished to take. b. Commission action on Resolution No. 1442. Upon a motion by Mr. Hunt, seconded by Mr. Hojnacld and unanimously carried, the Commission adopted Resolution No. 1442, a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. (Airport Economic Development Area) c. Public Hearing on Resolution No. 1443, a Supplemental Appropriation Resolution of the City of South Bend Redevelopment District (South Bend Central Development Area). Mrs. Kolata asked that the following documents be entered into the record: (1)An original of the Notice of Public Hearing for the South Bend Central Development Area; (2)Proofs of Publication that the Notice was published in both the Tri- County News and the South Bend Tribune on July 5, 1996. There were no objections and the items were -4- COMIISSION ADOPTED RESOLUTION NO. 1442, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION (AIRPORT ECONOMIC DEVELOPMENT AREA) South Bend Redevelopment Commission Regular Meeting - July 19, 1996 6. NEW BUSINESS (Cont.) c. continued.... entered into the record. Mrs. Kolata noted that Resolution No. 1443 appropriates $1,867,000.00 for lease payments and bond payments relating to various bond issues in the South Bend Central Development Area. The resolution also includes some funds for direct expenditures in the South Bend Central Development Area. Ms. Auburn opened the public hearing for anyone who wished to speak on the proposed appropriation. There was no one who wanted to speak so closed the public hearing for whatever action the Commission wished to take. d. Commission action on Resolution No. 1443. Upon a motion by Mr. Hojnacki, seconded by Mr. Faccenda and unanimously carried, the Commission adopted Resolution No. 1443, a supplemental appropriation resolution of the South Bend Redevelopment District (South Bend Central Development Area). e. Public Hearing on Resolution No. 1444, a Supplemental Appropriation Resolution of the South Bend Redevelopment District. (Sample -Ewing Development Area). Mrs. Kolata noted that the Tri- County News published notice of public hearing on July 5, but the South Bend Tribune published it on July 9, 1996. Because of this, the Commission can open the public hearing but will need to -5- COMMISSION ADOPTED RESOLUTION NO. 1443, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE SOUTH BEND REDEVELOPMENT DISTRICT (SOUTH BEND CENTRAL DEVELOPMENT AREA) South Bend Redevelopment Commission Regular Meeting - July 19, 1996 6. NEW BUSINESS (Cont.) e. continued.... continue it at the next meeting. Resolution No. 1444 appropriates $400,475.00 for direct expenditures in the Sample -Ewing Development Area. It will allow Redevelopment to continue their acquisition, relocation and demolition activities. It will provide funds for the new road to be constructed between Parkview and Ivy Tech. There were no objections and the items were entered into the record. Ms. Auburn opened the public hearing for anyone who wished to speak on the proposed r appropriation. There was no one who wanted to speak. Upon a motion by Mr. Faccenda, seconded by COMMISSION RECESSED THE PUBLIC HEARING Mr. Hojnacki and unanimously carried, the ON RESOLUTION NO. 1444 TO AUGUST 2, 1996 Commission recessed the public hearing on AT 10:00 A.M. AND CONTINUED THE PUBLIC HEARING Resolution No. 1444 to August 2, 1996 at 10:00 a.m. and continued the public hearing. f. Commission approval requested for proposal from H.S. Altman Incorporated for Lawn Care Maintenance along Nimtz Parkway. Mrs. Kolata noted that the proposal from H.S. Altman Incorporated is for lawn mowing services and some fertilizing of the landscape South Bend Redevelopment Commission Regular Meeting - July 19, 1996 6. NEW BUSINESS (Cont.) f. continued.... along Nimtz Parkway. The maximum amount is $16,875.00 if mowed eighteen times. The Staff recommends approving the proposal since it includes a per mowing rate. It is unlikely that it will need 18 mowings. The intent is that this contract with H.S. Altman Incorporated will be assigned to the Blackthorn Owner's Association, once the association is up and running because it is their responsibility to maintain the landscaping. The Redevelopment Commission is the majority property owner in the Owner's Association in terms of the land area, so they will be paying the largest portion of the bill. Upon a motion by Mr. Hojnacki, seconded by Mr. Faccenda and unanimously carried, the Commission approved the proposal from H.S. Altman Incorporated for Lawn Care Maintenance along Nimtz Parkway. g. Commission approval requested for letter from Mellon Bank F.S.B. related to lease payments for the Airport Taxable Rental Revenue Bonds. Mrs. Kolata noted that the Redevelopment Commission has been selling land in the Airport Area that is covered by the Taxable Bond. As each property is sold Redevelopment has set money aside to defease bonds with —what once was Society Bank and then Key Bank. Key Bank has since sold certain trust arrangements to Mellon Bank. They are the same people but with a different company -7- COMMISSION APPROVED THE PROPOSAL FROM H.S. ALTMAN INCORPORATED FOR LAWN CARE MAINTENANCE ALONG NDM PARKWAY South Bend Redevelopment Commission Regular Meeting - July 19, 1996 6. NEW BUSINESS (Cont.) g. continued.... name. Mellon Bank has been able to actually purchase and extinguish $150,000.00 worth of bonds with the money that has been deposited. The lease payment that Redevelopment needs to make on July 28 has been reduced by 5,550.00. The other part of the letter states that they want to send a letter to bond holders that have bonds maturing on August 1, 2012, to see if the bond holders would like to sell their bonds. Mellon Bank has approximately another $100,000.00 that Redevelopment has deposited with them in which to buy more bonds and further reduce the lease payments. Mellon Bank has been watching the market and because they're long- term bonds there isn't much activity. Mellon Bank wants to actively solicit to some of the current bond holders. Mrs. Kolata noted that the Redevelopment Commission's approval of the letter from Mellon Bank will only acknowledge that the lease payments are to be reduced and that Mellon Bank plans to solicit bond holders to buy additional bonds. Mrs. Kolata noted that the Redevelopment Authority met on Wednesday, July 17 and they approved the letter from Mellon Bank because technically the Redevelopment Commission makes its lease payments to the Redevelopment Authority and the staff did not want to pay less than what the lease requires without approval from both parties. ItIa South Bend Redevelopment Commission Regular Meeting - July 19, 1996 6. NEW BUSINESS (Cont.) g. continued.... Upon a motion by Mr. Faccenda, seconded by Mr. Hunt and unanimously carried, the Commission approved the letter from Mellon Bank, F.S.B. related to lease payments for the Airport Taxable Lease Rental Revenue Bonds. h. Commission appointment of initial Board of Directors for Owner's Association at Blackthorn. Mrs. Kolata noted that the covenants for the Blackthorn Corporate Park calls for a Board of Directors of three members. After the initial term, each director will have a three year term but the initial board is set up with one year, two year and three year initial terms. The Staff recommends to the Commission that the following people be appointed to the Board: John Sullivan Jr. —for a three year term; Jack Young —for a two year term; Paula Auburn—for a one year term. Mrs. Kolata noted that Mr. Sullivan was the first person to purchase property from Redevelopment in the Blackthorn Area. Mr. Young is doing a multi - building development, and the Commission still owns a large amount of land in the Blackthorn Corporate Park. If the Commission makes these appointments, the next step would be to have the board meet. They would need to incorporate and the Commission would expect the Directors to be incorporators and get the organization up and running. Upon a motion by Mr. Hunt, seconded by �'1 COMMISSION APPROVED THE LETTER FORM MELLON BANK F.S.B. RELATED TO LEASE PAYMENTS FOR THE AIRPORT TAXABLE LEASE RENTAL REVENUE BONDS South Bend Redevelopment Commission Regular Meeting - July 19, 1996 6. NEW BUSD ESS (Cont.) h. continued.... Mr. Faccenda and unanimously carried, the Commission approved the appointment of the initial Board of Directors for the Owner's Association at Blackthorn. L Staff Report on Disposition of Property in the Sample -Ewing Development Area. Mrs. Kolata noted that late last year the Commission received proposals from two individuals for part of parcel #11 in the Studebaker Corridor. Mrs. Kolata referred to a drawing which showed the location for each proposal. The area outlined in yellow was sold to Charles S. Hayes, Inc. Mr. Hayes has erected his radio- transmission tower. He is in the process of completing the rest of the site work that needs to be completed. Last fall the Commission accepted a proposal for the land outlined in pink from Practico Development (referring to the drawing). They planned to construct a 5,000 s.f. building for a tenant. That tenant did not follow through and the project did not materialize. The site is somewhat encumbered by one of the guide wires from Mr. Hayes's radio tower. So when the Practico development did not take place, Redevelopment spoke with Mr. Hayes to see if he would agree to commit to building what Practico development originally agreed to build —which is a 5,000 s.f. building. It would be for the same price and basically the same terms as what Practico Development had offered. The one accomodation that was made to extend the time frame allowed for construction. Redevelopment -10- COMMISSION APPROVED THE APPOINTMENT OF THE INITIAL BOARD OF DIRECTORS FOR THE OWNER'S ASSOCIATION AT BLACKTHORN South Bend Redevelopment Commission Regular Meeting - July 19, 1996 6. NEW BUSINESS (Cont.) L continued.... felt as though it would not be reasonable for Mr. Hayes to be expected to build the building this year. The time frame requires the start of construction by April 1997 or, if they are unable to secure a tenant, the contract will allow until October of 1997 for Charles S. Hayes, Inc. to start construction. Jackie Horvath, a realtor who works with Mr. Hayes on his projects, appeared at the meeting on Mr. Hayes behalf. The contract has been executed by Mr. Hayes and the performance guarantee has been given to Redevelopment. The staff recommends the Commission enter into this contract with Mr. Charles S. Hayes, Inc. Jackie Horvath explained that there are a lot of telecommunications companies headed for the South Bend Area. The competition is basically for cellular phones. Charles S. Hayes, Inc. is hoping to have as a tenant some of these companies for switching facilities. Mr. Hunt asked if this would clear up the encroachment issue. Mrs. Kolata noted that it did. This will not be an encroachment. Redevelopment would enter into a contract with Charles S. Hayes and would not actually close with Charles S. Hayes, Inc. until a later date. Charles S. Hayes, Inc. would not actually purchase the property at this point but would be actively pursuing tenants and would purchase the -11- South Bend Redevelopment Commission Regular Meeting - July 19, 1996 6. NEW BUSD4ESS (Cont.) i. continued.... property prior to the start of construction. Upon a motion by Mr. Hojnacki, seconded by COMMISSION APPROVED THE CONTRACT Mr. Faccenda and unanimously carried, the WITH CHARLES S. HAVES, INC. FOR PART OF Commission approved the contract with Charles PARCEL 11 IN THE SAMPLE -EWING DEVELOPMENT AREA S. Hayes, Inc. for part of parcel 11 in the Sample -Ewing Development Area. j. Commission approval requested for use of Morris Civic Plaza by WZOW. Mrs. Kolata noted that the request is from Mikki Dobski- Shidler of Community Affairs on behalf of WZOW radio station. WZOW wants to do some brown bag lunches and entertainment on two Fridays, July 26 and August 16 from 10:00 a.m. to 2:00 p.m. and the staff recommends approving the use of the Morris Civic Plaza by WZOW, subject to them providing proof of insurance. WZOW will be responsible for cleaning up the Morris Civic Plaza after each event. Upon a motion by Mr. Faccenda, seconded by Mr. Hunt and unanimously carried, the Commission approved the use of the Morris Civic Plaza by WZOW on July 26 and August 16, 1966. k. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 1017 Diamond. (Louise Jones) Mrs. Kolata explained that the loan to Louise Jones is in the amount of $6,500.00 at 1 % for -12- COMMISSION APPROVED THE USE OF THE MORRIS CIVIC PLAZA BY WZOW ON JULY 26 AND AUGUST 16, 1996 South Bend Redevelopment Commission Regular Meeting - July 19, 1996 6. NEW BUSINESS (Cont.) k. continued.... six years with monthly payments of $93.05. The grant is $6,338.75. Mrs. Kolata noted that there are two different construction companies doing the work. One is doing the bulk of the work and the other is doing the roof. They were separated out for price reasons. Upon a motion by Mr. Hunt, 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 1017 Diamond. (Louise Jones) 1. Commission approval requested for Loan in connection with the Affordable Loan and Program for property located at 1334 Fassnacht. (Walter and Mary Smith) Mrs. Kolata explained that the loan to Walter and Mary Smith is in the amount of $10,200.00 at 0 % interest and there are no payments. It is a "due upon sale" loan. Sandy Saunders explained that this is an option for the elderly and handicapped only. If they have the equity in their home and just do not have the financial capacity to make payments. Upon a motion by Mr. Hojnacki, seconded by Mr. Hunt and unanimously carried, the Commission approved the Loan in connection with the Affordable Loan Program for property located at 1334 Fassnacht. (Walter and Mary Smith) -13- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 1017 DIAMOND (LOUISE JONES) COMMISSION APPROVED THE LOAN IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 1334 FASSNACHT (WALTER AND MARY SMrM '' South Bend Redevelopment Commission Regular Meeting - July 19, 1996 7. PROGRESS REPORTS Mrs. Kolata mentioned that since Tom Eddington has resigned from Redevelopment, she has joined the Center City Associates Board and Executive Committee. Mrs. Kolata also noted that she has had some meetings with South Bend Heritage Foundation regarding the Robertson's Building. The City has awarded contracts for the $350,000 worth of work that is going to be done on the Robertson's building. The South Bend Heritage Foundation expects to start development of the Robertson's Building in the middle of August. 8. NEXT COMIVIISSION MEETING The next Regular Meeting of the Redevelopment NEXT COMMISSION MEETING Amok Commission is scheduled for August 2, 1996 with a continued Public Hearing on Resolution No. 1444 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. Hojn ' seconded the motion and the meeting was adjo ed at 10:40 a.m. Paula N. Auburn, President -14- ADJOURNMENT L-✓ E. Kolata, Director