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SOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
August 16, 1996
10:00 a.m.
Presiding: Paula N. Auburn
President
1. ROLL CALL
Members Present:
Members Absent:
Legal Counsel:
Redevelopment Staff:
Business Assistance:
Bureau of Housing:
Media:
Others:
2. APPROVAL OF MINUTES
1308 County -City Building
227 W. Jefferson Boulevard
South Bend, Indiana
Ms. Paula N. Auburn, President
Mr. Robert W. Hunt, Vice - President
Mr. William P. Hojnacki, Secretary
Mr. Michael Donoho
Mr. Philip J. Faccenda
Ms. Jenny Pitts Manier
Mrs. Ann Kolata, Director
Ms. Vangelean Binion, Recording Secretary
Mr. Mike Beitzinger, Econ. Dev. Specialist
Mrs. Ernestine Ligon
Mr. Mike Tinny
Mr. Don Porter, South Bend Tribune
Mr. Ernest J. Szarwark, Barnes & Thornburg
Mr. Carter Wolf, Center City Associates
a. Approval of Minutes of the Regular Meeting
of Friday, August 2, 1996.
Upon a motion by Mr. Hunt, seconded by
Mr. Donoho and unanimously carried, the
Redevelopment Commission approved the
Minutes of the Regular Meeting of August 2,
1996.
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CONMSSION APPROVED THE
NUNUTES OF AUGUST 2, 1996
South Bend Redevelopment Commission
Regular Meeting - August 16, 1996
3. APPROVAL OF CLAIMS
Redevelopment Commission Claims submitted August 16, 1996, for approval.
ADMIN 1996 (212)
$100.00
Gene's Camera Store
$87.10
Business Systems
$91.00
Day Timer, Inc.
$21.90
Aspen Publishers, Inc.
$115.00
Bell Reporting Service
$462.40
Calendar Sale
$22.85
NBD Bank Visa
$10.95
Mobile Comm
$10.30
SAMPLE- EWING DEVELOPMENT AREA (414)
York Title & Escrow Inc.
$100.00
Torok Excavation & Demolition, Inc.
$25,231.00
Petty Cash
$307.00
Violet Frison & York Title & Escrow
$5,586.00
Violet Frison
$1,250.00
American Electric Power
$611.05
St. Joseph County Clerk
$32,100.00
GE—kF-i9—,4L ACCOU
Design Packaging $45,000.01t
Upon a motion by Mr. Donoho, seconded by COMMISSION APPROVED THE CLAIMS SUBMITTED
Mr. Hojnacki and unanimously carried, the AUGUST 16, 1996 AND ORDERED THE CHECKS TO BE
Redevelopment Commission approved the RELEASED
Claims submitted August 16, 1996 and
ordered checks to be released.
4. COMMUNICATIONS
There were no Communications.
5. OLD BUSINESS
There was no Old Business
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THERE WERE NO COMMUNICATIONS
THERE WAS NO OLD BUSINESS
South Bend Redevelopment Commission
Regular Meeting - August 16, 1996
6. NEW BUSINESS
a. Commission approval requested for
Resolution No. 1450 Approving an
Application for Personal Property Tax
Deduction for property located at 3333
Lathrop Street in the Airport Economic
Development Area. (Total Enterprises,
LTD)
Mrs. Kolata asked permission to table item ITEM 6.A. WAS TABLED
6.a. There were no objections and item
6.a. was tabled.
b. Commission approval requested for
Resolution No. 1451, a resolution of the
South Bend Redevelopment Commission
determining to pay certain expenses
incurred for local public improvements
in or serving the Sample -Ewing
Allocation Area (South Bend Allocation
No. 8) Special Fund.
Mrs. Kolata noted that this resolution states
the Commission's intent to appropriate
$620,000 in the Sample -Ewing
Development Area. It anticipates proceeds
coming into the Commission from the sale
of land to Ivy Tech. It also appropriates
some money that was previously
encumbered but the encumbrances were
taken off.
Mrs. Kolata anticipates that the
appropriation will probably be reduced at
the public hearing because she may have
over estimated the amount. Resolution
No. 1451 sets a Public Hearing for
September 6, 1996 at 10:00 a.m. and at that
time the exact amount of the appropriation
will be determined.
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South Bend Redevelopment Commission
Regular Meeting - August 16, 1996
6. NEW BUSINESS (Cont.)
b. continued....
Upon a motion by Mr. Hojnacki, seconded by COMMISSION ADOPTED RESOLUTION
Mr. Donoho and unanimously carried, the
NO. 1451, A RESOLUTION OF THE SOUTH
Commission adopted Resolution No. 1451, a
BEND REDEVELOPMENT COMMISSION
resolution of the South Bend Redevelopment
DETERMINING TO PAY CERTAIN EXPENSES
INCURRED FOR LOCAL PUBLIC
Commission determining to pay certain
IMPROVEMENTS IN OR SERVING THE
expenses incurred for local public
SAMPLE -EW1NG ALLOCATION AREA (SOUTH
improvements in or serving the Sample-
BEND ALLOCATION AREA NO. 8) SPECIAL
Ewing Allocation Area (South Bend
FUND
Allocation Area No. 8) Special Fund.
c. Commission approval requested for
Resolution No. 1453 Approving Fair Re-Use
Value of property located at 602 S. Michigan
in the South Bend Central Development
Area. (Dreisbach Building)
Mrs. Kolata noted that at the time the Dreisbach
Building was acquired it was received as a
donation. The Commission was prohibited from
selling the building for a two year period which
expired at the end of 1995. When the building
was offered for disposition, it was offered as a
short or long -term lease. The staff has people
interested in acquiring the property but they are
only interested in purchasing the property, not
leasing it. That is why we need to put the
property up for bid.
Mrs. Kolata noted that the property is divided
into three sections; the first, Parcel A, is the main
building itself along with approximately an acre of
land; Parcel B is located south of Parcel A
fronting along Michigan St. with a little less than
a half acre; Parcel C fronts along St. Joseph
Street and is approximately one acre. Bids can be
submitted on any one of the three parcels or all
three parcels if the entire property is preferred,
with a minimum purchase price established for
each part.
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South Bend Redevelopment Commission
Regular Meeting - August 16, 1996
6. NEW BUSINESS (Cont.)
c. continued....
Mrs. Kolata noted that it states in the offering
sheet the proposed re -use is commercial, meaning
retail or office. However, Parcel C that fronts on
St. Joseph Street is not zoned for residential but
someone might want to construct housing on the
site since there is residential housing on the other
side of St. Joseph Street. There would need to be
a transition from the commercial development on
Michigan Street to the residential development on
St. Joseph Street, whether through buffering or
landscaping.
The bid specifications allow for two possibilities;
(1) for proposals that include re -use of the
existing structure, the Commission would expect
a significant amount of high quality exterior rehab
on the north, east and south sides of the property
and they would expect the west side of the
property that faces the alley to be cleaned up.
The building is not to be used as is; it requires
exterior renovation.
(2) for proposals that include demolishing the
structure and constructing another building, the
proposed structure has to be sensitive to the
height, layout and materials surrounding the new
building. A new building must be of masonry or
similar material. Preference will given to two
story buildings and any new construction must
provide a minimum of 20% site coverage.
Proposals that include the construction of a
second building on the site are preferred. There
is enough room to have two buildings with
parking in between the buildings. A metal
building will not be approved by the Commission.
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South Bend Redevelopment Commission
Regular Meeting - August 16, 1996
6. NEW BUSINESS (Cont.)
c. continued....
Mrs. Kolata noted that there are landscaping
requirements between the parking and sidewalk.
Outside storage of materials and equipment is not
allowed nor are free standing mini- warehouses or
mini- storage units allowed.
Mrs. Kolata noted the schedule for advertising is
listed in the Notice of Intended Sale of Property
published in the South Bend Tribune and Tri-
County News on August 16 and August 23,
1996 and receipt of bids on September 6, 1996
at 10:00 a.m.
Upon a motion by Mr. Hojnacki, seconded by
Mr. Donoho and unanimously carried, the
Commission adopted Resolution No. 1453
Approving the Fair Re -Use Value of property
located at 602 S. Michigan in the South Bend
Central Development Area. (Dreisbach
Building)
d. Commission approval requested for Bid
Specifications and Design Guidelines for
Disposition Parcel M19 -1,5,6 in the South
Bend Central Development Area.
Upon a motion by Mr. Hunt, seconded by
Mr. Hojnacki and unanimously carried, the
Commission approved the Bid Specifications
and Design Guidelines for Disposition Parcel
M19 -1,5,6 in the South Bend Central
Development Area as outlined.
e. Commission authorization requested to
publish Notice of Intended Sale of
Property in the South Bend Central
Development Area with publication dates
of August 16 and August 23, 1996 and
502
COMMISSION ADOPTED RESOLUTION NO. 1453
APPROVING THE FAIR RE -USE VALUE OF
PROPERTY LOCATED AT 602 S. MICHIGAN IN
THE SOUTH BEND CENTRAL DEVELOPMENT
AREA (DREISBACH BUILDING)
COMMISSION APPROVED THE BID
SPECIFICATIONS AND DESIGN GUIDELINES
FOR DISPOSITION PARCEL M19 -1,5,6 IN THE
SOUTH BEND CENTRAL DEVELOPMENT AREA
AS OUTLINED
South Bend Redevelopment Commission
Regular Meeting - August 16, 1996
6. NEW BUSINESS (Cont.)
e. continued....
receipt of bids at 10:00 a.m. on September
6, 1996.
Upon a motion by Mr. Donoho, seconded by
Mr. Hunt and unanimously carried, the
Commission approved the request to publish
the Notice of Intended Sale of Property in
the South Bend Central Development Area
with publication dates of August 16 and
August 23, 1996 and receipt of bids at 10:00
a.m. on September 6, 1996.
f. Commission approval requested for
Resolution No. 1454 Approving the
Transfer of Real Property to the City of
South Bend, Indiana.
Mrs. Kolata noted that this resolution
transfers a vacant lot fronting on Bronson
Street east of Rush Street to the Board of
Public Works, which will then dispose of the
property to the Housing Development
Corporation. This will be added to property
that the Housing Development Corporation
currently owns. They intend to construct a
duplex on a portion of this property.
Upon a motion by Mr. Hojnacki, seconded
by Mr. Donoho and unanimously carried, the
Commission adopted Resolution No. 1454
Approving the Transfer of Real Property to
the City of South Bend, Indiana.
g. Commission consideration requested for
the use of the Palais Royale on a
temporary basis.
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COMMISSION APPROVED THE REQUEST TO
PUBLISH THE NOTICE OF INTENDED SALE OF
PROPERTY IN THE SOUTH BEND CENTRAL
DEVELOPMENT AREA WITH PUBLICATION
DATES OF AUGUST 16 AND AUGUST 23, 1996
AND RECEIPT OF BIDS AT 10:00 A.M. ON
SEPTEMBER 6, 1996
COMMISSION ADOPTED RESOLUTION
NO. 1454 APPROVING THE TRANSFER OF REAL
PROPERTY TO THE CITY OF SOUTH BEND,
INDIANA
South Bend Redevelopment Commission
Regular Meeting - August 16, 1996
6. NEW BUSINESS (Cont.)
g. continued....
Mrs. Kolata stated that the staff has
received a letter from a group of Notre
Dame graduate students and members of the
South Bend Community who are interested
in opening an alternative art gallery in the
former Mark's Restaurant inside the Palais
Royale located in downtown South Bend.
This request has the support of a number of
people in the business and art community in
South Bend; Bill Tourtillotte, artist and
Curator of the South Bend Museum Art;
Julie Tourtillotte, artist and Professor of Art
at St. Mary's College; Carter Wolf from
Center City Associates; Susan Visser from
the Art Center; Jeff Gibney from South Bend
Heritage Foundation; Tom Miller, Associate
Dean of Fine Arts at IUSB; and Shana Stein,
artist and art teacher at the Regional
Museum.
Mrs. Kolata stated that the graduates are
willing to pay call costs related to occupying
the space. The staff requested that Real
Estate Management inspect the heating and
plumbing to make sure they are in proper
working order. It was noted by Real Estate
Management that the heating and plumbing
are in proper working order. The staff also
requested that the Building Department
inspect the space. It was noted that there are
a number of things that need to be done in
order to have the graduate students occupy
the space. The staff recommends that the
Commission allow the students to occupy
the space on a month -to -month basis with
the conditions listed below.
10
South Bend Redevelopment Commission
Regular Meeting - August 16, 1996
6. NEW BUSINESS (Cont.)
g. continued....
The graduate students would need to
construct a landing at the rear exit door,
construct a solid barrier at the entrance to
the kitchen, construct a solid barrier at the
stairway that goes up into the ballroom, have
fire extinguishers accessible, turn on the
water and get the plumbing and heating
checked by the Building Department, and
pay all utility bills during their occupancy of
the space. The graduate students are aware
that they can be taken out of the former
Mark's Restaurant next spring, if the
renovation of the Palais Royale begins.
Mrs. Kolata stated that the staff would ask
that all costs related to occupying the space
be paid for by the graduate students and that
the Commission would not be responsible for
any costs related to this proposed project.
The staff would also need a Certificate of
Insurance.
Mr. Hunt asked if these contingencies have
been reviewed with the students. Mrs.
Kolata stated that the staff has mentioned the
contingencies to Carter Wolf from Center
City Associates and Jeff Gibney of South
Bend Heritage Foundation. Mr. Hojnacki
asked if the proposed project was being
attached to the University of Notre Dame.
Mrs. Kolata stated that this will not be
attached to Notre Dame.
Mr. Wolf stated that each of the students
would sign the agreement individually and
assume responsibility as a group. Each of
the students would assume a 20% liability for
the project. He also stated that he has been
sea
South Bend Redevelopment Commission
Regular Meeting - August 16, 1996
6. NEW BUSINESS (Cont.)
g. continued....
working with these students since January
1995. Susan Visser, Director of the South
Bend Regional Museum of Art, became
involved with this group of graduate
students. She is trying to find ways of
stimulating the art community.
Mr. Hojnacki asked what the Commission's
liability would be if the students were to
trash the former Mark's Restaurant.
Ms. Manier stated that the property is
insured.
Mr. Hunt asked if anyone has calculated the
cost for the additional requirements and if
anyone has discussed the costs with the
graduate students to see if they are
financially able to support their proposed
project. Mrs. Kolata responded that she had
not discussed it with them.
Ms. Manier suggested that she draft an
agreement and present it to the students for
their review to have the students decide if
the costs are within their financial
capabilities. The agreement will also detail
the terms of the agreement.
Mrs. Kolata asked permission to continue ITEM 6.G. WAS TABLED
item 6.g. and bring in the final agreement at a
later date. There were no objections and the
item was tabled.
h. Commission approval requested for Loan
and Grant in connection with the
Affordable Loan Program for property
located at 1818 Sibley Ave. (Adeline
Cytacki)
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South Bend Redevelopment Commission
Regular Meeting - August 16, 1996
6. NEW BUSINESS (Cont.)
h. continued....
i.
.l•
Mrs. Kolata explained that the loan to
Adeline Cytacki is in the amount of $4,250
at 0% interest for 9 years with monthly
payments of $39.35. The grant is $4,068.35.
Upon a motion by Mr. Hojnacki, seconded
by Mr. Donoho and unanimously carried, the
Commission approved the Loan and Grant in
connection with the Affordable Loan
Program for property located at 1817 Sibley
Ave. (Adeline Cytacki)
Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property located at 403 N. Studebaker.
(Ernest Jack Reed and Mary E. Reed)
Mrs. Kolata noted that this Certificate of
Waiver forgives $691.50 as of May 17, 1996
for Ernest Jack Reed and Mary E. Reed.
She also noted that Mr. Reed works for the
City of South Bend. It has previously been
determined that Mr. Reed does not have a
conflict of interest.
Upon a motion by Mr. Hunt, seconded by
Mr. Hojnacki and unanimously carried, the
Commission approved the Certificate of
Waiver in connection with the Rental Rehab
Loan Program for property located at 403 N.
Studebaker. (Ernest Jack Reed and Mary E.
Reed)
Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property located at 528 N. Blaine.
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COMMISSION APPROVED THE LOAN AND
GRANT IN CONNECTION WITH THE
AFFORDABLE LOAN PROGRAM FOR
PROPERTY LOCATED AT 1817 SIBLEY AVE.
(ADELINE CYTACKI)
COMMISSION APPROVED THE CERTIFICATE
OF WAIVER IN CONNECTION WITH THE
RENTAL REHAB LOAN PROGRAM FOR
PROPERTY LOCATED AT 403 N. STUDEBAKER
(ERNEST JACK REED AND MARY E. REED)
South Bend Redevelopment Commission
Regular Meeting - August 16, 1996
6. NEW BUSINESS (Cont.)
j. continued....
(Northern Oak Homes)
Mrs. Kolata noted that this Certificate of
Waiver forgives $850.00 for each of the
years ending July 15, 1995 and 1996.
Upon a motion by Mr. Hojnacki, seconded
by Mr. Hunt and unanimously carried, the
Commission approved the Certificate of
Waiver in connection with the Rental Rehab
Loan Program for property located at 528 N.
Blaine. (Northern Oak Homes)
k. Commission approval requested for
Satisfaction of Obligations and Release of
Mortgage. (Ernest Jack Reed and Mary
E. Reed)
Mrs. Kolata noted that all obligations have
been met under the Rental Rehab Program
for the property at 403 N. Studebaker.
Upon a motion by Mr. Hunt, seconded by
Mr. Hojnacki and unanimously carried, the
Commission approved the Satisfaction of
Obligations and Release of Mortgage.
(Ernest Jack Reed and Mary E. Reed)
1. Commission approval requested for
Satifaction of Debt. (Ernest Jack Reed
and Mary E. Reed)
COMMISSION APPROVED THE CERTIFICATE
OF WAIVER IN CONNECTION WITH THE
RENTAL REHAB LOAN PROGRAM FOR
PROPERTY LOCATED AT 528 N. BLAINE
(NORTHERN OAK HOMES)
COMMISSION APPROVED THE SATISFACTION
OF OBLIGATIONS AND RELEASE OF
MORTGAGE (ERNEST JACK REED AND MARY
E. REED)
Upon a motion by Mr. Hunt, seconded by COMMISSION APPROVED THE SATIFACTION
Mr. Hojnacki and unanimously carried, the OF DEBT (ERNEST JACK REED AND MARY E.
Commission approved the Satisfaction of REED)
Debt. (Ernest Jack Reed and Mary E. Reed)
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C9
South Bend Redevelopment Commission
Regular Meeting - August 16, 1996
6. NEW BUSINESS (Cont.)
m. Commission approval requested for
Resolution No. 1455 of the South Bend
Redevelopment Commission regarding
use of Surplus Revenue from Urban
Redevelopment Bonds of 1972.
Mrs. Kolata noted that the bonds were
issued in 1972 and paid off in 1992. There
were some excess taxes collected in the
amount of $8,789.93 that are sitting in Fund
No. 303. Ms. Manier has recommended that
these excess funds be deposited into
Fund 310 which is the fund used to pay back
the Studebaker Corridor bonds. This will
allow us to close out Fund No. 303.
Upon a motion by Mr. Hunt, seconded by
Mr. Hojnacki and unanimously carried, the
Commission adopted Resolution No. 1455 of
the South Bend Redevelopment Commission
regarding use of Surplus Revenue from
Urban Redevelopment Bonds of 1972.
7. PROGRESS REPORTS
The Redevelopment intern, Andy Laurent, will
be leaving Friday, August 16, 1996 to return to
Ball State University. He has done a good job
this summer.
8. NEXT COMMISSION MEETING
The next Regular Meeting of the Redevelopment
Commission is scheduled for September 6, 1996
at 10:00 a.m..
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COMMISSION ADOPTED RESOLUTION
NO. 1455 OF THE SOUTH BEND
REDEVELOPMENT COMMISSION REGARDING
USE OF SURPLUS REVENUE FROM URBAN
REDEVELOPMENT BONDS OF 1972
NEXT COMMISSION MEETING
c
South Bend Redevelopment Commission
Regular Meeting - August 16, 1996
9. ADJOURNMENT
There being no further business to come before ADJOURNMENT
the Redevelopment Commission, Mr. Hojnacki
made a motion that the meeting be adjourned.
Mr. Hunt seconded the motion and the meeting
was adjourned at 10:40 a.m.
Paula N. Auburn, President Ann E. Kolata, Director
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