Loading...
HomeMy WebLinkAboutRM 09-20-96Im SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING September 20, 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 Mr. William P. Hojnacki, Secretary Mr. Michael Donoho Members Absent: Mr. Phillip J. Faccenda Mr. Robert W. Hunt, Vice - President Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann Kolata, Director Ms. Vangelean Binion, Recording Secretary Mrs. Hedy Robinson, Economic Development Specialist Mr. John Stark, Economic Development Specialist Mr. James Riggs, Economic Development Specialist Business Assistance: Mr. Mike Beitzinger, Economic Development Specialist Bureau of Housing: Mrs. Ernestine Ligon Media: Mr. Don Porter, South Bend Tribune Others: Mr. Kevin Hughes, Project Future Mr. Tom Walz, Lex Investment Inc. Mr. Jim Knepp, Lex Investment Inc. Mr. Dennis, Emery Mr. Curt Alford, Elumatec USA Mr. Steve Van Tongeren, Elumatec USA Mr. John Piraccini, BCP Partnership Mr. Rick Doolittle, SSP Properties Mrs. Auburn noted that the Executive Session will continue immediately following adjournment of the Regular Meeting. -1- South Bend Redevelopment Commission Regular Meeting - September 20, 1996 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday, September 6, 1996. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Redevelopment Commission approved the Minutes of the Regular Meeting of September September 6, 1996. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF SEPTEMBER 6, 1996 Redevelopment Commission Claims submitted September 20, 1996, for approval. ADMIN 1996 (212) Tepe Furniture, Co. $716.00 York Title & Escrow $170.00 Indiana Association of Cities & Towns $50.00 Business Systems $192.72 Baker & Daniels $881.50 Thomas General Construction $35.00 Petty Cash $86.37 NIPSCO $7.64 Superior Waste Systems $65.80 National Arbor Day Foundation $10.00 McCloskey -Pitts $187.50 Ohio Nursery & Landscape Assoc., Inc. $50.00 South Bend Tribune $448.00 American Planning Association $265.00 AIRPORT TIF REVENUE (324) Peirce & Assoc. $200.00 H.S. Altman $3,082.00 SAMPLE- EWING DEVELOPMENT AREA (4141 Bradberry Brothers, Inc. $16,611.81 Torok Excavating & Demolition Inc. $944.75 -2- South Bend Redevelopment Commission Regular Meeting - September 20, 1996 3. CLAIMS (Cont.) SAMPLE- EWING DEVELOPMENT AREA (414) York Title & Escrow $1,455.00 Cole Associates Inc. $8,037.73 Petty Cash $368.40 American Electric Power $309.14 Grauvogul & Assoc. $75.00 S.B.C.D.A. T.I.F. GENERAL ACCOUNT(420) American Electric Power $623.54 South Bend Water Works $282.24 Community & Economic Development $1,980.20 Real Estate Management, Corp. $824.51 Midland Engineering Company $2,000.00 Upon a motion by Mr. Donoho, seconded by Mr. COMMISSION APPROVED AND RATIFIED THE Hojnacki and unanimously carried, the Commission CLAIMS SUBMITTED SEPTEMBER 20, 1996 AND approved and ratified the Claims submitted ORDERED THE CHECKS TO BE RELEASED September 20, 1996 and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS a. Commission consideration of request to occupy space in the Palais Royale building on a temporary basis. Mrs. Kolata asked permission to table item 5.a. There were no objections and item 5. a. was tabled. [A -3- THERE WERE NO COMMUNICATIONS ITEM 5.A. WAS TABLED South Bend Redevelopment Commission Regular Meeting - September 20, 1996 5. OLD BUSINESS (Cont.) b. Commission approval requested for use of the Palais Royale building by Michiana Arts & Sciences Council for the 1997 Carnival for the Arts. Mrs. Kolata explained that Michiana Arts & Sciences Council has submitted a request to use the Palais Royale Ballroom for the 1997 Carnival for the Arts. They have two dates: April 25 - 27, 1997 and May 16 - 18, 1997. Mrs. Kolata noted that she went through the Palais Royale on September 19, 1996 with Don Fozo, Building Department and Burt Prawat, Fire Protection. When Carnival of the Arts used the Ballroom in the Spring of 1996 it was to be a one time use of the Ballroom. It was anticipated at the time Michiana Arts & Sciences Council made their request, that the Palais Royale would be shut down for renovation immediately after Carnival. Since then the renovation has been delayed and Michigan Arts & Sciences Council has submitted their request for use of the Palais Royale Ballroom in 1997. Mrs. Kolata noted that the Building and Fire Department had allowed the Palais Royale to be treated as a temporary use, similar to the Ethic Festival, where you don't require permanent wiring and temporary wiring was allowed. Certain requirements were handled as a temporary use. If the Commission allows continued use of the Palais Royale building, there is a need for permanent improvements; hard wiring, fire escape IL corrections, hand rails, alarms and various -4- South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. OLD BUSINESS (Cont.) b. continued.... things of that sort which entails spending money for the repairs. Mr. Hojnacki stated that he would like to give consideration to the community groups for use of the building but he opposes the use of the Palais Royale building until the renovation of the building is complete. He feels that it puts the Commission in a difficult position, given the current condition of the building. Mrs. Kolata noted that when Michiana Arts & Sciences Council used the Palais Royale Ballroom, Michiana Arts & Sciences Council worked closely with both the Building Department and the Fire Department to make sure the Palais Royale Ballroom was up to code for a one time event. Mrs. Kolata stated that if the Commission is considering having a policy stating that no groups are to use the building until the renovation of the Palais Royale is complete, then that needs to be determined. Upon a motion by Mr. Hojnacki, COMMISSION TURNED DOWN THE REQUEST OF seconded by Mr. Donoho and MICHIANA ARTS & SCIENCES COUNCIL TO USE unanimous) carried, the Commission y THE PALAIS ROYALE IN 1997 AND STATED IT turned down the request of Michiana Arts WAS OPPOSED TO THE USE OF THE PALAIS ROYALE BUILDING BY ANY ORGANIZATION & Sciences Council to use the Palais UNTIL THE RENOVATION OF THE BUILDING IS Royale in 1997 and stated it was opposed COMPLETE to the use of the Palais Royale building by any organization until the renovation of the building is complete. 1-4- -5- South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS a. Staff report on disposition of property in the Airport Economic Development Area. (Toll Road Industrial Park) James Riggs gave the staff report on the project. The Commission has received a proposal to purchase Lot 11 of the Toll Road Industrial Park from Elumatec USA, Inc. Elumatec USA is the United States sales, service and distribution center of Eugen Lutz GmbH & Co. Of Muhlacker, Germany. Eugen Lutz is a manufacturer of machinery for processing aluminum and vinyl extrusions. Elumatec USA is a fully owned subsidiary of Eugen Lutz. Eugen Lutz has 19 offices around Europe, North America, Asia and Australia and annual sales in excess of $53 million (80 million DM). The project would be a 25,000 s.f distribution facility which would include offices, a demonstration room, and warehouse space. Elumatec USA proposes to purchase the property for $85,560 which is $23,000 per acre. (This is the same as the most recent sale price of land in the Toll Road Industrial Park for Commission property.) Elumatec USA expects that the project would create up to six jobs to start and then up to ten jobs within the first year. They plan to begin construction of the 25,000 s.f facility by mid - October with completion in March of 1997. Elumatec USA asks that the Commission participate in clearing trees from the property, limiting the Commission South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) a. continued.... participation to $25,000. This is in line with other recent proposals approved by the Commission for other properties that had substantial property or site preparation costs. The staff recommends that the Commission accepts the proposal subject to the following: Funds for clearing the trees from the property would be placed in escrow with a third party at closing; Elumatec would be able to draw from the escrow after completion of the clearing work upon approval of Redevelopment staff, Plans and specifications for the building, once approved through the City's design review process, would be made a part of the Contract for Sale of Land. Steve Van Tongeron with Elumatec USA handed out a brochure outlining the company's history and a video tape that shows their vinyl production line. He stated that Elumatec USA is currently leasing space in Columbus, Indiana and would like to move into the South Bend area. They feel that South Bend is a prominent location for marketing and distribution purposes and they feel as though the support systems are here in the South Bend area. Mrs. Kolata noted this is a heavily - wooded site and that other people who have looked at this site in the past have raised the issue of clearing the trees. South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) a. continued.... Kevin Hughes stated that they have worked with Elumatec USA for about three months and had the opportunity to meet the owners of Elumatec USA, who came to South Bend and spent two days looking around the community for existing buildings and subsequently looking for land. He feels as though the international firms locating in South Bend are good for the community. He stated that the Redevelopment staff has done a terrific job. Mrs. Auburn stated that one of the elements that has been interesting in the last few years has been the internationalization of the industry that South Bend has located here — German, Japanese, British and Swedish. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission approved the staff recommendation for disposition of property in the Airport Economic Development Area. (Toll Road Industrial Park) b. Commission approval requested for Resolution No. 1460 Approving an Application for Tax Deduction for property located at 4320 Ralph Jones Court in the Airport Economic Development Area. Mrs. Kolata asked for authorization for the Director to sign the tax abatement 4 -8- COMMISSION APPROVED THE STAFF RECOMMENDATION FOR DISPOSITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (TOLL INDUSTRIAL PARK) South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) b. continued.... petition as owner of the property. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission authorized and ratified the Director signing the tax abatement petition. Mike Beitzinger gave a report on the proposed project. Elumatec USA is the United States sales, service, and distribution hub for the Eugen Lutz GmbH & Co. Eugen Lutz, located in Muehlacker- Lomersheim Germany, produces industrial saws, drills, and other processing machinery for aluminum and vinyl extrusions. Elumatec imports the equipment and sells to customers throughout the United States. Their project calls for the construction of a 25,000 square foot distribution center. The distribution center will house warehouse, office and demonstration functions. All administrative support for the US operation will also be performed at this site. The total cost for the project is estimated at $550,000. Per the petition, it is estimated that this project will create six new permanent full-time jobs with an annual payroll of $204,000. The average salaries for these jobs will be approximately $34,000 each. A review of the tax abatements previously granted finds that Elumatec USA has not been granted any previous tax abatements. The building commissioner -9- COMMISSION AUTHORIZED AND RATIFIED THE DIRECTOR TO SIGN THE TAX ABATEMENT PETITION c South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) b. continued.... has reviewed the petition and finds that the property is properly zoned for the proposed use. 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 Elumatec USA meets the qualifications for a three year real property tax abatement. Using an estimated project cost of $550,000 the taxes generated over three years is approximately $77,067. The amount to be abated is approximately $51,121 and the taxes generated with the abatement is approximately $25,946. Upon a motion by Mr. Donoho, seconded by Mr. Hojnacki and unanimously carried, the Commission adopted Resolution No. 1460 Approving an Application for Tax Deduction for property located at 4320 Ralph Jones Court in the Airport Economic Development Area. d. Commission approval requested for Resolution No. 1462, a Resolution of the South Bend Redevelopment Commission Approving the Execution of an Addendum to the Lease Dated as of September 11, 1996, Between the South Bend Redevelopment -10- COI bMSSION ADOPTED RESOLUTION NO. 1460 APPROVING AN APPLICATION FOR TAX DEDUCTION FOR PROPERTY LOCATED AT 4320 RALPH JONES COURT IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) d. continued.... Commission and the South Bend Redevelopment Authority for Certain Land in the South Bend Central Development Area. Mrs. Kolata noted that both Resolution No. 1461 and Resolution No. 1462 have to do with a refinancing of ' Redevelopment Authority Bonds that were issued in 1990 for the South Bend Central Development Area. On September 10 the Authority refinanced a portion of the Bonds, in the amount of $3,790,000. The net savings related to the refinancing of the bonds amounts to $452,412, the present value savings is approximately $175,000 and the net interest rate is 5.629 %. Mrs. Kolata noted that Resolution No. 1462 amends that lease that exists between the Commission and the Redevelopment Authority to account for a new payment schedule and to allow the bond payments to be reduced because of the savings generated by the refinancing. Resolution No. 1461 authorizes certain funds to be maintained in various accounts. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1462, a Resolution of the South Bend Redevelopment Commission Approving the Execution of an Addendum to the -11- COMMISSION ADOPTED RESOLUTION NO. 1462, A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION APPROVING THE EXECUTION OF AN ADDENDUM TO THE LEASE DATED AS OF SEPTEMBER 11, 1996, BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE SOUTH BEND REDEVELOPMENT AUTHORITY FOR CERTAIN South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) d. continued.... Lease Dated as of September 11, 1996, between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority for Certain Land in the South Bend Central Development Area. c. Commission approval requested for Resolution No. 1461, Establishing Certain Funds and Accounts in Connection with the Lease Dated as of November 1, 1989 and as Amended by an Addendum Thereto Dated as of April 6, 1990, and as Further Amended by An Addendum to Lease Between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried the Commission adopted Resolution No. 1461, Establishing Certain Funds and Accounts in Connection with the Lease Dated as of November 1, 1989 and as Amended by an Addendum Thereto Dated as of April 6, 1990, and as Further Amended by an Addendum to Lease Between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority. e. Staff report on Disposition of property in the South Bend Central Development Area. (Dreisbach Building) -12- LAND IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA COMMISSION ADOPTED RESOLUTION NO. 1461, ESTABLISHING CERTAIN FUNDS AND ACCOUNTS IN CONNECTION WITH THE LEASE DATED AS OF NOVEMBER 1, 1989 AND AS AMENDED BY AN ADDENDUM THERETO DATED AS OF APRIL 6, 1990, AND AS FURTHER AMENDED BY AN ADDENDUM TO LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE SOUTH BEND REDEVELOPMENT AUTHORITY South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) e. continued.... John Stark noted that the Dreisbach Building is made up of three parcels that total 115,000 s.f of property. The minimum purchase price is $253,075. There were two bids received for the property: the first bid is from SSP Properties who proposes to construct one 15,000 s.f. single -story building contingent on approval from GSA, to build a Social Security Administration Building and contingent on the environmental investigation. They also propose a second, two story building on the south portion of the property, although there is no guaranty the second building would ever be constructed. Their bid price totaled $150,000. The second bid is from BCP Partnership to construct a mixed -use facility, utilizing the existing building and also new construction. BCP Partnership's proposed project will consist of light manufacturing, storage and retail or service frontage. The BCP Partnership offer is contingent on environmental investigation and whatever remediation might be necessary. Mrs. Kolata noted that she had spoken with a GSA representative and they stated that there hasn't been a decision made on the location of the building for the Social Security Offices, that the request for proposals had not gone out as of that time. They were waiting for the completion of the market report from the -13- South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) e. continued.... Social Security Administration, which the representative hoped to have by September 13, 1996. GSA would then go out with the request for proposals. GSA hopes to have a decision by mid - December. Mrs. Kolata noted that neither SSP Properties nor BCP Partnership met the minimum bid price that the Commission could accept at this point. SSP Properties has a bid price of $150,000, they would require the Commission to have the building torn down and to complete any environmental remediation that is required. The staff estimate on the environmental investigation (not including remediation) is approximately $15,000. The staff anticipates that the $150,000 purchase price from SSP Properties would cover any environmental remediation and the demolition of the building. Mrs. Kolata noted that if the building was to be torn down, the staff has serious concerns about the style of building that is suggested by SSP Properties. There was no site plan or design for a new building on this lot, instead photographs of other buildings that SSP Properties has constructed in other cities were submitted. These buildings were suburban type, single -story buildings which is not exactly what is desired on the site. The staffs other concern C, consisted of the experiences that they had -14- South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) e. continued.... dealing with GSA related to the Bankruptcy Court. In that case the Commission was impressed with both designs and would have been happy with either design and did a joint award based on that design. In this case, the staff is not particularly happy with the single - story building design. The staff recommends that the bid be rejected. Mrs. Kolata noted that the staff has three major concerns regarding BCP Partnership's proposal related to their bid. The first concern was that the $5,000 purchase price would not cover the cost of even the environmental investigation, let alone any remediation. The staffs second concern was that the bid specifications prohibited the use of mini- warehouses and BCP Partnership has mini- warehouses as a major portion of their project. The staffs third concern was that, if the building was going to be re -used, a substantial renovation of the building was required. BCP Partnership proposes to renovate the building by simply cleaning and painting. The staff recommends rejecting this bid. John Piraccini stated that BCP Partnership started with a manufacturing facility that started in downtown South Bend and would like to stay in downtown South Bend. They are looking to move if they are not able to get what is needed. BCP Partnership feels as though they would have to put a substantial amount of -15- South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) e. continued.... money in the building itself, in the amount of $350,00 - $400,000. This would include a complete face lift of the front and sides and some painting. The brick work needs to be painted and there's a need for new windows. They would replace the garage doors and in the front they would change some things. The heating and electrical need to be re- wired. John Piraccini stated that they would be willing to do whatever it takes to meet the bid specifications. Mr. Doolittle, representing SSP Properties, noted that as part of their proposal, they proposed to construct a second building on the site that would be a two -story building. He stated that SSP Properties cannot defer to a single -story building. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission accepted the staff recommendation to reject both bid proposals. Ms. Auburn commented that she would like staff to work with both parties to see if modifications can be made to their proposed developments. f. Staff report on disposition of property in the West Washington- Chapin Development Area. (Lot at 505 W. Washington) 14 -16- COIvMSSION ACCEPTED THE STAFF RECOMMENDATION TO REJECT BOTH PROPOSALS South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) f. continued.... Mrs. Kolata noted that this is a vacant Lot at 505 W. Washington. There were two bids received for this property. Both bids were over the minimum purchase price: the one from Dennis Emery was for $13,300 and the one from Lex Investment, Inc. was in the amount of $16,500. The bid specifications required that the lot be used for a parking lot and that landscaping be planted between the side walk and parking area. These were the two major requirements. Both proposals addressed this, the proposal from Lex Investment Inc. was complete. The proposal from Dennis Emery was missing the number of parking spaces, a construction schedule, and a firm financing commitment. The difference between the two proposals is that if Dennis Emery were to purchase the property to use for his apartment building that is east of the lot, he would require a curb cut on Washington Street. If Lex Investment Inc. were to purchase the lot they would be able to use the current drive located on their property that is west of the lot. The current drive goes to the back of Lex Investment's property where they have a parking lot that has fifteen spaces. Mrs. Kolata noted that she drove through the block, around and down the alleys and through a couple of lots that are in that block. Mrs. Kolata stated that to the west of 509 W. Washington, which is the property owned by Lex Investments Inc., -17- South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) f. continued.... is a lot owned by the company that owns Tippecanoe Place, that is for Tippecanoe's employees. There are parking spaces in this lot and they are operated by Lawson & Fisher which owns the property west of that. There are a number of parking spaces located on that block and some spaces are available for rent. The staff tried finding out what the availability of parking is and the rental rate. However, we have not heard back from Dan Lawson yet. The staff recommends accepting the proposal of Lex Investment. They feel as though this would enable the lot to be completed in a short time and it would have just one curb cut. The staff will work with Dennis Emery to help his tenants find parking spaces in other lots on a monthly basis. Also the staff would suggest, if Lex Investment Inc. has extra parking spaces, they might also consider renting out spaces to Dennis Emery's tenants if someone would want to rent a parking space on a montly basis. Dennis Emery stated that Lex Investment, Inc. are attorneys who are using their office as attorneys, apparently have an investment company which may be for tax purposes. He stated that Lex Investment, Inc. also has a big parking lot behind their building which they use for auto repair which he took pictures of, taken yesterday. 0 -18- South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) f. continued.... Dennis Emery stated that there is an auto repair firm on the north side of the alley which uses part of their lot. He stated that Lex Investment, Inc. is not using their lot. They also have been using the City owned lot which he has pictures of He stated that those in his building, downtown residents, have no place to park, they have nothing. Lex Investment, Inc. has a lot. He stated that Lex Investment has a building one -fifth the size of his building with a lot and they have nothing. He asks and implores the Commission, for his tenants, his current tenants and future tenants. Dennis Emery stated that the City claims they want downtown residents. With downtown residents, when they try to rent from him and the tenants say where do we park, I say we really don't have anything. He stated that this lot is really the only place his tenants have to park. Dennis Emery stated that if the Commission would like a financial commitment, he would have one for the Commission in a week, a time table whatever the Commission wants. He stated that he would meet Lex Investment's price, which is fine with him. He states that he and his tenants have nothing. He states that you can't grow land. He asked the Commission would they like to see the auto repair going on. -19- South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) f. continued.... Mrs. Kolata stated that she saw it. There are cars up and down the alley. Dennis Emery stated that Lex Investment, Inc. is not using their property. He stated that he had Mr. Walz on tape, yesterday when he called Dennis Emery. Dennis Emery stated that he has concerns about this because there is a collusion form that must be signed. He stated that he taped the call and Mr. Walz asked him and admittedly told him that Lex Investment, Inc. is using their lot for auto repair and he wanted to discuss it. Dennis Emery stated that Mr. Walz is an attorney and Mr. Emery isn't an attorney, he doesn't know about the collusion thing. Dennis Emery asked if the Commisison would like to hear the tape or see the pictures because he had them. Mrs. Kolata noted that she would acknowledge that Dennis Emery is right when he says that there is an auto repair shop on the north side of the alley and there are cars and vehicles parked all up and down the alley. Dennis Emery stated that there are cars parked all in the lot and half of the lot usually. He stated that he has been there for twenty four years and in the last ten years half of the lot has auto repair going on, which it is not zoned for. He stated that five years ago his block was rezoned and he states that no type of auto repair is -20- South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) E continued.... permitted. He states that because Lex Investment, Inc. has been there, they can do it on his own property but not as an investment company in their own parking lot. Mrs. Auburn asked was there someone from Lex Investment, Inc. here. Jim Knepp stated his name and introduced his partner Tom Walz. Jim Knepp stated that he and Tom Walz are Lex Investment. He stated that this is an entity that owns the building. Jim Knepp stated that he will agree with Dennis Emery and Mrs. Kolata that Lex Investment, Inc. does have fifteen spaces. They also have seventeen spaces used. He stated that they have to rent additional spaces from Tippecanoe Place simply for his staff. Jim Knepp stated they have four attorneys, five secretaries, three paralegals and one law clerk. Jim Knepp stated that he doesn't know what City lot Dennis Emery was referring to. Mrs. Kolata stated that she thought Dennis Emery was referring to the lot at 505 W.Washington. She stated that there was a vehicle parked on this lot on Wednesday. Jim Knepp stated that this was not one of -21- South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) E continued.... their vehicles. He stated that he doesn't know whose vehicle it is. Jim Knepp stated that they did call Dennis Emery last evening and he believes that it was Mr. Hojnacki who suggested at the last meeting that perhaps there could be a shared use of the lot. Jim Knepp stated that they had not heard from Dennis Emery at all, so they called him last evening to discuss this situation. Jim Knepp stated that the problem that they have with that, is that the former Workforce Development Building, which is empty, there is a parking lot associated with that, they've talked with the owner of the building. Jim Knepp stated that there are five cars parked there who are Mr. Emery's residents, those cars are parked there twenty -four hours a day, seven days a week and one of the cars has no plates on it. With the idea of shared use of the lot, because we want to use minimum density, which would be nine spaces, a shared use would indicate that each of the remaining spaces, which would be available on an interim basis, would cost between $6,000 to $8,750 which is not an intelligent investment. Jim Knepp stated that they are interested in purchasing the lot, they have the financial wherewithal, with the assistance of Valley Bank, to complete the project on a quick basis. He stated that they propose minimum density and no curb cut is needed. -22- South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) E continued.... Tom Walz stated that he attempted to call Dennis Emery last night and that he had a conversation with him. He stated that his intention was to open a dialogue to see what Dennis Emery's needs were and to express to him what Lex Investment, Inc.'s priorities were. That was the essence of the conversation. He stated that if there is an impression left that somehow Lex Investment, Inc. did something improper, that was not the case, they attempted to be good neighbors. He stated that he was a little bit shocked, at least the way he interpreted some of the comments of Mr. Emery. Mrs. Kolata noted that she would agree with Dennis Emery, that there was a vehicle parked there on the lot, but she did not know who was parking on the lot. Dennis Emery stated that it was a state representative. Jim Knepp stated that the state representative was Mike Dvorak, he is an attorney in the office with himself and Tom Walz. He stated that whether Mike Dvorak was parked in the City lot, he was not aware of it. Jim Knepp stated that the idea that Mike Dvorak was parked there improperly, he is an attorney in Lex Investment's office. Dennis Emery stated that when he presented his proposal, he used the City -23- South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) E continued.... packet which contained a plot land use that shows that there is also a private drive going from the northwest corner going into the alley way. Mrs. Kolata stated that she was surprised at that too. It doesn't seem to be wide enough for a vehicle. This is one of the strangest shaped lots, it's basically a rectangle with a 6' by 98' strip on it. That isn't wide enough for a vehicle. That's a pedestrian type of access. Mrs. Auburn stated it is always difficult when there is more than one bid for one piece of property and there isn't enough property to go around to make everyone happy. But the Commission does need to take a motion and move forward on disposition of this particular piece of property since both of the uses are essentially identical. Mr. Donoho stated that he'd like to move that the Commission award to Lex Investment, his primary mover on that is that the bid guidelines were met, the price was higher and the price was higher at bid time —not post -bid. Upon a motion by Mr. Donoho, seconded by Mr. Hojnacki and unanimously carried, the Commission accepted the proposal from Lex Investment, Inc. for purchase of the property at 505 W. Washington in the Washington- Chapin Development Area. (Lot at 505 W. Washington) -24- COMMISSION ACCEPTED THE PROPOSAL FROM LEX INVESTMENT, INC. FOR PURCHASE OF THE PROPERTY AT 505 W. WASHINGTON IN THE WEST WASHINGTON- CHAPIN DEVELOPMENT AREA (LOT AT 505 W. WASHINGTON- CHAPIIN) South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) E continued.... Mr. Emery asked if he had any recourse, if there was anything he could do. Mrs. Kolata responded not really. She also said that the staff would be glad to work with Mr. Emery to try to help solve the parking problems. Mrs. Kolata also pointed out that there are parking spaces available on the block and the staff will get Mr. Emery the information on that. Also there is a vacant lot on Colfax just behind this one. It's owned by people in Pennsylvania and we could investigate this as another possibility. Mr. Emery asked about the auto repair. Mrs. Kolata responded that it was an on going problem and she asked Code Enforcement to drive down the alley and look at the situation. The auto repair shop is a pre - existing use to the rezoning and they have a right to be there. They should not be repairing a car on property other than their property. Mrs. Kolata suggested that Mr. Emery discuss this with Code Enforcement. Ms. Auburn asked Mr. Emery to contact the staff to discuss the parking and the auto repair shop. Mr. Emery stated that he was interested in this lot, and it was being given to the attorneys. ` -25- South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) E continued.... Mrs. Kolata stated that the lot was being sold and that there was no political influence in this decision. - g. Commission approval requested for proposal for professional services related to environmental investigation of the Dreisbach property. Mrs. Kolata asked permission to table ITEM 6.G. WAS TABLED item 6.g. There were no objections and item 6.g. was tabled. h. Staff report on Disposition of Property in the South Bend Central Development Area. Mrs. Kolata noted that the staff received a letter from Sam Gillespie and read it as follows: "Trammell Crow Company is pleased to announce that we would like to move forward on our downtown office project after three years of intensive effort. We are excited about the opportunity to work with Memorial Health System Inc. and the City of South Bend to create a vibrant commercial project in the heart of downtown South Bend. We propose to build a minimum three - story, 45, 000 sf building up to a maximum of a 60,000 sf., four -story building, anchored by Standard Federal Savings Bank. A major component of the project will be a second building on the C; -26- South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) h. continued.... site of approximately 75, 000 sf. This building will be constructed and owned by Memorial Health System. The site plan that provides for our building, Memorial's building, the parking garage, the central plaza, the Michigan Street retail, and the Transpo bus stop is different from out original site plan submitted three years ago and we propose to modify our contract to reflect the current site plan and provide for the development of Memorial's project directly by Memorial. Because the financing source for our project is the Multi Employer Property Trust, a union labor pension fund, a condition of any modification of our contract must be a requirement that Memorial use a contractor signatory to a collective bargaining agreement with the local building trades. In addition, we will need to review the legal description of our building site as its location has changed from the original site plan. We will also need to review other terms and conditions of our contract. We are truly excited about this project finally coming together and are anxious to move forward with the necessary paperwork. Please call if you have any questions or comments. Sincerely: Samuel A. Gillespie, Managing Director at Trammell Crow in Indianapolis. Mrs. Auburn stated that there has been a -27- South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) h. continued.... sign on the property stating that the development was coming for a long time. She stated that it sounds like the development is coming. Mr. Hojnacki stated that he was pleased that things were moving along. Mr. Donoho asked was there any action needed to be taken on the letter. Mrs. Kolata stated the staff is pleased that Memorial wants to be a part of the project and Trammell Crow wants to work with Memorial to allow that to happen. Mrs. Kolata stated that she thinks what needs to take place, is that the Commission refer this to staff to try and sit down with all the parties to discuss how development of a project that includes both Memorial and Trammell Crow might take place, to discuss the various issues, and come back to the Commission with specifics about how such development may take place with some documents. She stated we need a specific proposal as to how things would change. Mrs. Auburn stated that as usual when you start out on a project like this, you start one plan and over time things change. She stated that people come in and look at space and different configurations but the original intent of IL -28- r . South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) h. continued.... the use of that property has not changed, that is, to get development, to get office development, to get some multi -use, kinds of corporations and organizations configured on that block. Mrs. Auburn stated that the fact that Memorial is now interested in joining with some of the other people in the discussion stage, is certainly a positive move. She also stated that Memorial has been a key community developer and a key community player. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission moved that the staff be directed to meet with representatives of Memorial and Trammell Crow, to discuss specific details about development on the downtown site that includes both Trammell Crow and Memorial. Any specific proposals that the parties may reach should be memorialized, and submitted to the Commission for its consideration by October 18, 1996 with a progress report. I. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 829 E. Miner Street. (Paul W. and Mary Jo Quinn) -29- COMMISSION MOVED THAT THE STAFF MEET WITH THE REPRESENTATIVES OF MEMORIAL AND TRAMMELL CROW, TO DISCUSS SPECIFIC DETAILS ABOUT DEVELOPMENT ON THE DOWNTOWN SITE THAT INCLUDES BOTH TRAM1v1ELL CROW AND MEMORIAL. ANY SPECIFIC PROPOSALS THAT THE PARTIES MAY REACH SHOULD BE MEMORIALIZED, AND SUBMITTED TO THE COMMISSION FOR ITS CONSIDERATION AND RETURN BY OCTOBER 18, 1996 WITH A PROGRESS REPORT South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) L continued.... Mrs. Kolata noted that this Certificate of Waiver forgives $453.16 as of September 11, 1996. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 829 E. Miner Street. (Paul W. and Mary Jo Quinn) j. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 422 N. College. (Housing Development Corporation) Mrs. Kolata noted that this Certificate of Waiver forgives $2,600.00 as of March 4, 1996. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 422 N. College. (Housing Development Corporation) k. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 712 Lindsey. (Louis M. and Mary H. Seago) -30- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 829 E. MINER STREET. (PAUL W. AND MARY JO QUINN) COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 422 N. COLLEGE (HOUSING DEVELOPMENT CORPORATION) f I South Bend Redevelopment Commission Regular Meeting - September 20, 1996 6. NEW BUSINESS (Cont.) k. continued.... Mrs. Kolata noted that this Certificate of Waiver forgives $406.70 as of August 30, 1996. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 712 Lindsey. (Louis M. and Mary H. Seago) 7. PROGRESS REPORTS Mrs. Kolata reported that the Design Review function that was handled by Tom Eddington has been transferred over to the Building Department as of September 9. Jim Markle will serve as the Design Review Administrator. So far, it has worked extremely well. The intent was to try and streamline the process and make it more customer friendly by having design review at the same location where building permits are issued. The staff has received a grant from the Economic Development Administration in the amount of $60,000 to do a re -use analysis of the former White Farm property to see if it is economically viable to revitalize as an Industrial Park. This is a year long study that will include estimates on demolition, market analysis, cost of developing an industrial park etc. -31- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 712 LINDSEY (LOUIS M. AND MARY H. SEAGO) P 0 19 South Bend Redevelopment Commission Regular Meeting - September 20, 1996 There was a closing on the Redevelopment staff's first house move on September 19, 1996. There is a new homeowner at 608 Pennsylvania. 8. NEXT COMIVIISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for October 4, 1996 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Donoho made a motion that the meeting be adjourned. Mr. Hojnacki seconded the motion and the meeting was adjourned at 11:1 m. Q/J Paula N. Auburn, President NEXT COMMISSION MEETING Ann E. Kolata, Director -32-