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Home My WebLink AboutRM 08-02-9614 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 2, 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. Michael Donoho Mr. Phillip J. Faccenda Members Absent: Mr. William P. Hojnacki Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann Kolata, Director Ms. Vangelean Binion, Recording Secretary Business Assistance: Mr. Mike Beitzinger, Econ.Dev. Specialist Media: Ms. Sharon Brown, South Bend Tribune Others: Mr. William E. Horvath, 0-T -D Corporation Mr. Jeff Gibney, South Bend Heritage Foundation Mr. Carter Wolf, Center City Associates Ms. Auburn announced that the Executive Session will continue immediately following adjournment of the Regular meeting. 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday, July 19, 1996. Upon a motion by Mr. Hunt, seconded by Mr. Faccenda and unanimously carried, the Redevelopment Commission approved the Minutes of the Regular Meeting of July 19, 1996. -1- COMMISSION APPROVED THE MINUTES OF JULY 19, 1996 South Bend Redevelopment Commission Regular Meeting - August 2, 1996 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted August 2, 1996, for approval. AMEN 1996 (212) Business Systems $66.65 360 Communication $83.12 Jerome E. Michaels, MAI $1,000.00 AIRPORT TIF REVENUE (324) Williams Aerial and Mapping Inc. $2,025.00 HS Altman Inc. $3,393.42 Peirce & Associates $1,257.50 Ken Herceg & Associates $741.23 SAMPLE- EWING DEVELOPMENT AREA (414) William Ross $2,760.00 William Ross & Celesta Ross $2,905.00 Tri- County News $51.80 St. Joseph County Clerk $5,400.00 York Title & Escrow $50.00 Troyer Group $2,339.20 Odelia Frison and Title Search Company $5,487.00 Odelia Frison $1,150.00 S.B.C.D.A. T.I.F. GENERAL ACCOUNT(420) N.I.P.S.CO $9.07 American Electric Power $19.52 C & S Services, Inc. $212.50 Rose Exterminator Co. $40.00 Real Estate Management Corp. $1,194.56 BLACKTHORN GOLF COURSE (6291 North American Golf $6,450.00 Upon a motion by Mr. Donoho, seconded by COMMISSION APPROVED THE CLAIMS Mr. Faccenda and unanimously carried, the SUBMITTED AUGUST 2, 1996 AND ORDERED THE Redevelopment Commission approved the Claims CHECKS TO BE RELEASED submitted August 2, 1996 and ordered checks to -2- South Bend Redevelopment Commission Regular Meeting - August 2, 1996 be released. 4. COMMUNICATIONS There were no Communications. THERE WERE NO COMMUNICATIONS 5. OLD BUSINESS a. Public Hearing on Resolution No. 1444, a Supplemental Appropriation Resolution of the South Bend Redevelopment District. (Sample -Ewing Development Area). Mrs. Kolata stated that at the July 19, 1996 Regular Commission Meeting, Proofs of Publication were presented which indicated the legal notice was printed in the Tri- County News on July 5 but was not printed in the South Bend Tribune until July 9, 1996. On July 19, 1996 the Public Hearing was opened and recessed until the Regular Meeting of August 2, 1996. Mrs. Kolata noted that Resolution No. 1444 appropriates $400,475.00 in the Sample -Ewing Development Area for direct expenditures. It would be used to make payments for acquisition, relocation and clearance, as well as to set aside money towards the construction of Elder Parkway. The Public Hearing was reconvened for anyone who wished to comment on Resolution No. 1444. There was no one who wished to speak on the proposed appropriation. Ms. Auburn closed the Public Hearing for whatever action the Commission wished to take. -3- South Bend Redevelopment Commission Regular Meeting - August 2, 1996 6. NEW BUSINESS a. Commission approval requested for Resolution No. 1444. Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1444, a Supplemental Appropriation Resolution of the South Bend Redevelopment District. (Sample - Ewing Development Area). b. Commission approval requested for Resolution No. 1446 Approving an Application for Real Property Tax Deduction for property located at 3722 Foundation Court in the Airport Economic Development Area. (Aledo Company, LLC.) Mr. Beitzinger gave the staff report on the project. 0-T -D Corporation is in the business of manufacturing, selling and leasing, and servicing containers for use in the Petro Chemical Industry. Their project calls for a 25,000 square foot addition to the building on Foundation Court. The addition will be utilized for shipping, receiving and warehousing. The total estimated cost of new construction is $800,000. Per the petition, it is estimated that this project will not result in any new jobs, however, approximately forty (40) permanent full -time jobs with an annual payroll of $880,000 will be retained. 0-T -D also states that they currently are leasing space in another location and this project will combine operations and jobs currently at the other location will be brought to the facility on Foundation Court. 0-T -D has also indicated that they extensively use a temporary -4- COMMISSION ADOPTED RESOLUTION NO. 1444, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE SOUTH BEND REDEVELOPMENT DISTRICT (SAMPLE -EWING DEVELOPMENT AREA) South Bend Redevelopment Commission Regular Meeting - August 2, 1996 6. NEW BUSINESS (Cont.) b. continued.... service and employment increases by 20 or more jobs depending on customer demand. A review of the tax abatements previously granted finds that O -T -D Corporation was granted three previous tax abatements: a three year real property tax abatement in April 1993; a five year personal property tax abatement in April 1993; a five year personal property tax abatement in January 1996. O -T -D Corporation is in compliance with the reporting requirements for the previous abatements. The property is properly zoned for the proposed use. A review of the tax abatement designation 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 designation areas finds that 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 O -T -D meets the qualifications for a six (6) year real property tax abatement. Using an estimated project cost of $800,000 the taxes expected to be generated by the proposed project without abatement, will be approximately $224,194. With a six year abatement the taxes are estimated at, $92,667. The amount to be abated is approximately $131,527. William Horvath, manufacturing manager of -5- South Bend Redevelopment Commission Regular Meeting - August 2, 1996 6. NEW BUSINESS (Cont.) b. continued.... 0-T -D Corporation stated that 0-T -D Corporation plans to break ground in a few weeks. The plans have been finalized through Panzica Construction. Effective, August 5, 1996, 0-T -D Corporation will split their existing crew to two full-time shifts. The first shift will work from 5:00 a.m. to 1:30 p.m. and the second shift will work from 1:30 - 10:00 p.m. 0-T -D Corporation has new equipment arriving soon. The proposed purpose for this project is that 0-T -D Corporation closed a Houston operation and consolidated in the South Bend area and have made a commitment to the South Bend community. Most of 0-T -D Corporation suppliers are based in the South Bend area. Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1446 Approving an Application for Real Property Tax Deduction for property located at 3722 Foundation Court in the Airport Economic Development Area. (Aledo Company, L. L. C . ) C. Commission approval requested for Resolution No. 1447 related to Acquisition of property within the West Washington- Chapin Development Area by Eminent Domain. Mrs. Kolata stated that in July 1996, the Redevelopment Commission approved an amendment to the plan for the West Washington - Chapin Development Area by adding one property to the acquisition list. Mrs. Kolata noted at that time that the staff would come back to the S-1 COMMISSION APPROVED RESOLUTION NO. 1446 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3722 FOUNDATION COURT IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (ALEDO COMPANY, L.L.C.) South Bend Redevelopment Commission Regular Meeting - August 2, 1996 6. NEW BUSINESS (Cont.) C. continued.... Commission with a resolution authorizing the purchase offer. Resolution No. 1447 authorizes the staff to send a purchase offer to the property owner for the property located at 309 -313 Scott St. and sets the price for the offer. Resolution No. 1447 states that if the property owner does not accept the purchase offer and if the staff and the property owner cannot come to an agreement, Redevelopment would then use Eminent Domain to purchase the property. Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1447 related to Acquisition of property within the West Washington - Chapin Development Area by Eminent Domain. d. Commission approval requested for Resolution No. 1448 of the South Bend Redevelopment Commission Approving the Fair Re-Use Value of property located at 505 W. Washington in the West Washington - Chapin Development Area. Mrs. Kolata noted this vacant lot is currently owned by the Redevelopment Commission and is located close to the corner of William and Washington Street. The property had an apartment building on it that burned down and was then demolished. The Commission desires to put the property up for sale. -7- COMMISSION ADOPTED RESOLUTION NO. 1447 RELATED TO ACQUISITION OF PROPERTY WITHIN THE WEST WASHINGTON -CHAPIN DEVELOPMENT AREA BY EMINENT DOMAIN South Bend Redevelopment Commission Regular Meeting - August 2, 1996 6. NEW BUSINESS (Cont.) d. continued.... Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1448 Approving the Fair Re -Use Value of property located at 505 W. Washington in the West Washington - Chapin Development Area. e. Commission authorization requested to publish Notice of Intended Sale of Property in the West Washington- Chapin Development Area with publication dates of August 9 and August 16, 1996 and receipt of bids at 10:00 a.m. on September 6, 1996. Mrs. Kolata noted that this Notice of Intended Sale of Property authorizes Redevelopment to publish the dates of sale and to receive bids on September 6 at 10:00 a.m. Mrs. Kolata noted that Redevelopment has several property owners interested in the property and will notify them of the bids. Mr. Jeff Gibney ask a question relating to restrictions on the sale of the property in terms of site improvements. Mrs. Kolata replied that the potential buyer must pave the lot and landscape it. Mr. Jeff Gibney asked if the Commission would consider restricting chain link fencing on the property. COMMISSION ADOPTED RESOLUTION NO. 1448 OF APPROVING THE FAIR RE- USE VALUE OF PROPERTY LOCATED AT 505 W. WASHINGTON -CHAPIN DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - August 2, 1996 6. NEW BUSINESS (Cont.) e. continued.... Mrs. Kolata noted that they would agree to that suggestion. The staff would require a site plan of the property from the potential buyer. Mrs. Kolata stated that the legal notice would be published on August 16 and August 23 and bids received on September 6. Upon a motion by Mr. Hunt, seconded by COMMISSION AUTHORIZED Mr. Donoho and unanimously carried, the PUBLICATION OF NOTICE OF INTENDED Commission authorized Publication of Notice of SALE OF PROPERTY IN THE WEST WASHINGTON -CHAPIN DEVELOPMENT Intended Sale of Property in the West AREA WITH PUBLICATION DATES OF Washington - Chapin Development Area with AUGUST 16 AND AUGUST 23, 1996 AND publication dates of August 16 and August 23, RECEIPT OF BIDS AT 10:00 A.M. ON 1996 and receipt of bids at 10:00 a.m. on SEPTEMBER 6, 1996 September 6, 1996. f. Commission approval requested for Resolution No. 1449, a Resolution of the South Bend Redevelopment Commission approving the transfer of real property to the City of South Bend, Indiana. Mrs. Kolata noted that this resolution transfers property to the Board of Works. It is a vacant lot that is adjacent to the Revelation Church of God and Christ located between Heritage Homes Southeast and the Church. Mrs. Kolata stated that the Commission would be transferring the property to the Board of Public Works and then the Board of Public Works would transfer the property to the Revelation Church of God and Christ. South Bend Redevelopment Commission Regular Meeting - August 2, 1996 6. NEW BUSINESS (Cont.) f. continued.... Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1449, a Resolution of the South Bend Redevelopment Commission approving the transfer of real property to the City of South Bend, Indiana. g. Commission approval requested for Bill of Sale for improvements located at 607 E. Wenger in the Sample -Ewing Development Area. Mrs. Kolata noted that the Bill of Sale is for property located at 607 E. Wenger. This house will be sold to South Bend Heritage Foundation and then will be moved to the 600 block of east Pennsylvania. Upon a motion by Mr. Donoho, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Bill of Sale for improvements located at 607 E. Wenger in the Sample -Ewing Development Area. h. Commission approval requested for Bill of Sale for improvements located at 1214 Marietta in the Sample -Ewing Development Area. Mrs. Kolata noted that the Bill of Sale is for property located at 1214 E. Marietta. This is a house that is being sold to South Bend Heritage Foundation and then will be moved to the 600 block of east Pennsylvania. Upon a motion by Mr. Donoho, seconded by Mr. Hojnacki and unanimously carried, the -10- COMMISSION ADOPTED RESOLUTION NO. 1449 APPROVING THE TRANSFER OF REAL PROPERTY TO THE CITY OF SOUTH BEND, INDIANA COMMISSION APPROVED THE BILL OF SALE FOR IMPROVEMENTS LOCATED AT 607 E. WENGER IN THE SAMPLE -EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - August 2, 1996 6. NEW BUSINESS (Cont.) h. continued.... Commission approved the Bill of Sale for improvements located at 1214 Marietta in the Sample -Ewing Development Area. I. Commission approval requested for Community Development Program Contract (CD96 -308) in the amount of $470,357 for Elder Parkway. (7/27/96 - 6/30/97) Mrs. Kolata noted that the Redevelopment Commission intends to construct a parkway between the new Parkview Juvenile Center and the site that is set aside for the Ivy Tech project. This Contract is for Community Development Funds for a portion of that expected cost. It is anticipated that the Redevelopment Commission will reimburse the Community Development Program over a period of time. Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission approved the Community Development Program Contract (CD96 -308) in the amount of $470,357 for Elder Parkway. (7/24/96 - 6/30/97) 7. PROGRESS REPORTS There was no report. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for August 16, 1996 at 10:00 a.m. _11- COMMISSION APPROVED THE BILL OF SALE FOR IMPROVEMENTS LOCATED AT 1214 MARIETTA IN THE SAMPLE -EWING DEVELOPMENT AREA COMMISSION APPROVED THE COMMUNITY DEVELOPMENT PROGRAM CONTRACT (CD -96 -308) IN THE AMOUNT OF $470,357 FOR ELDER PARKWAY (7/24/96 - 6/30/97) THERE WAS NO REPORT NEXT COMMISSION MEETING South Bend Redevelopment Commission Regular Meeting - August 2, 1996 9. ADJOURNMENT There being no further business to come before ADJOURNMENT the Redevelopment Commission, Mr. Faccenda made a motion that the meeting be adjourned. Mr. Donoho seconded the motion and the m was adjourned at 10:30 a.m. Paula N. Auburn, President Ann E. Kolata, Director -12-