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Home My WebLink AboutRM 10-04-9614 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING October 4, 1996 10:00 a.m. Presiding: Paula N. Auburn President 1. ROLL CALL Members Present: Legal Council: Redevelopment Staff: Business Assistance: Media: Others: 2. APPROVAL OF MINUTES a. Approval of Minutes of the Regular Meeting of Friday, September 20, 1996. 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 E. Kolata, Director Ms. Cheryl Phipps, Recording Secretary Mr. Mike Beitzinger, Economic Development Specialist Mr. Don Porter, South Bend Tribune Mr. Carter Wolf, Center City Associates Mr. Ernest Szarwark, Manufacturing Technology, Inc. David Higham, Notre Dame University graduate student Jesse Bay, Notre Dame University graduate student Neal Bochek, Notre Dame University graduate student Dave Collins, Notre Dame University graduate student Mat Rappaport, Notre Dame University graduate student Shana Stein, Notre Dame University graduate student Anna Ulrich, Notre Dame University graduate student Upon a motion by Mr. Donoho, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Minutes of the Regular Meeting of September 20, 1996. -I- COMMISSION APPROVED THE MINUTES OF SEPTEMBER 20, 1996 South Bend Redevelopment Commission Regular Meeting - October 4, 1996 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted October 4, 1996, for approval. ADMIN 1996 (212 Baker & Daniels $726.72 McCloskey -Pitts & Associates Inc. $187.50 The Morris Inn $198.38 National Arbor Day Foundation $10.00 Federal Express $27.50 Gene's Camera Store $357.18 York Title & Escrow $80.00 360 $73.54 Ameritech $75.00 Douglas Carpenter & Associates $700.00 Appraisal Group Inc. $800.00 Kinko's $64.75 AIRPORT TIF REVENUE (324) co South Bend Water Works $361.71 Ken Herceg & Associates $1,178.00 York Title & Escrow $243.00 Indiana Business Magazine $2,040.00 :4 SAMPLE- EWING DEVELOPMENT AREA (414 American Electric Power $43.12 Thomas General Construction $1,070.00 Troyer Group $2,288.46 St. Joseph County Treasurer $5.00 Richard Zimmerman $680.45 Tenner Rea Jones $845.00 BLACKTHORN GOLF COURSE (619) North American Golf $12,900.00 Upon a motion by Mr. Donoho, seconded by COMMISSION APPROVED THE CLAIMS SUBMITTED Mr. Faccenda and unanimously carried, the OCTOBER 4, 1996 AND ORDERED THE CHECKS TO Commission approved the Claims submitted BE RELEASED October 4, 1996 and ordered the checks to be released. -2- South Bend Redevelopment Commission Regular Meeting - October 4, 1996 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS a. Commission approval requested for Occupancy Agreement for portion of the Palais Royale Building. Mrs. Kolata noted this agreement is from seven graduate students, in the Art program at Notre Dame University. They have asked to occupy a portion of the Palais Royale Building which is the former Mark's Restaurant. The Occupancy Agreement sets out the terms that allow them to use the space on a month -to- month basis. The graduate students will cover all costs related to improving the space as required by the Building Commissioner and they will cover all costs associated to occupancy. Either party can terminate the agreement with ten days notice. David Higham, one of the graduate students, spoke on behalf of the students involved with the project. He stated that their idea was to have a gallery space to show art and to get the community involved. He feels as though the project would be beneficial to themselves, the A -3- THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - October 4, 1996 6. NEW BUSINESS (Cont.) a. continued.... community and the City by establishing a place to show their art work. He stated that they would meet the requirements that are needed to occupy the space —such as cleaning and painting. He stated that they would conduct their openings in a professional manner and maybe coordinate with the South Bend Museum of Art which has openings on Friday nights. The graduate students hope to bring the art community to downtown South Bend. Mrs. Auburn noted that the Commissioners were impressed with the idea of having art shows in the former Mark's restaurant and they are looking forward to it. Carter Wolf noted that the graduate students have the Insurance Agreement that is needed for occupancy of the former Mark's restaurant but it needs to be adjusted because he didn't think that the Insurance Agreement named the City's Redevelopment Commission and Redevelopment Authority as co- insureds and it needs to be added to the Insurance Agreement. Mrs. Kolata noted that the graduate students can go in and make their improvements to the building but the Building Commissioner must inspect the building before the public can go in. Mrs. Auburn asked the graduate students IL when they are planning to have their In South Bend Redevelopment Commission Regular Meeting - October 4, 1996 6. NEW BUSINESS (Cont.) a. continued.... grand opening. David Higham stated that he needs to consult with Susan Vissar, Director of the South Bend Museum of Art to find out the exact date when they would expect to have their grand opening. He stated that he didn't know exactly but probably sometime in late October or early November. He acknowledged their appreciation to the Commission for allowing them this opportunity. Upon a motion by Mr. Hunt, seconded by CONMSSION APPROVED THE OCCUPANCY Mr. Faccenda and unanimously carried, AGREEMENT FOR A PORTION OF THE PALAIS the Commission approved the Occupancy ROYALE BUILDING Agreement for a portion of the Palais Royale Building. b. Commission approval requested for Resolution No. 1464, a Resolution approving an application for personal property tax deduction for property located at 1702 West Washington Street in the West Washington- Chapin Development Area. Mike Beitzinger gave the report on the proposed project. Manufacturing Technology, Inc. is in the business of designing, building and servicing friction welding and production welding equipment, as well as engineering and design services. Their project calls for the purchase and construction of the Model 180 Friction Welder for use in production to provide high quality friction welds. The total cost of the new equipment is fir+ -5- South Bend Redevelopment Commission Regular Meeting - October 4, 1996 6. NEW BUSINESS (Cont.) b. continued.... estimated at $160,000. Per the petition, it is estimated that this project will create one new, permanent, full -time job within the first year representing a new annual payroll of $25,000. The project will also maintain ninety -five full time jobs and five part time jobs representing an annual payroll of $4,500,000. A review of the tax abatements previously granted finds that Manufacturing Technology, Inc. has been granted three previous tax abatements. The first was a five year personal property abatement granted to Adams Engineering (the predecessor of Manufacturing Technology, Inc.) for real and then personal property. The real property abatement was for six years and was passed in January 1992. The last abatement was for personal property and was passed in January 1992. Manufacturing Technology, Inc. is in compliance with the reporting requirements for the previous abatements. The Building Commissioner has reviewed the petition and finds that the property is properly zoned for the proposed use. A review of the tax abatement designation maps finds that the property is located in the Tax Abatement Impact Area and the Economic Development Target Area. A review of the Redevelopment designation areas finds that the property is located in the West Washington- Chapin Development Area, which is a Tax Incremental Allocation Area, therefore, in South Bend Redevelopment Commission Regular Meeting - October 4, 1996 6. NEW BUSINESS (Cont.) b. continued.... the petition first requires the approval of the Redevelopment Commission. A review of the Tax Abatement Ordinance finds that Manufacturing Technology, Inc. meets the qualifications for a five year personal property tax abatement. Using an estimated project cost of $160,000, the total taxes generated is approximately $14,544. The estimated amount abated over five years is approximately $11,965. The taxes still paid with the abatement is approximately $2,579. Mr. Szarwark stated that Manufacturing Technology, Inc. has one hundred people currently employed on the west side of South Bend. He stated that Manufacturing Technology, Inc. makes technology that is second to none in the world. They are one of five companies outside Japan that manufacture this type of technology. One is friction welding technology and the other is commercial welding technology. This is the type of state of the art welding technology currently available. He stated that Manufacturing Technology, Inc. plans to build a new machine for their own internal use to build other welding machines. Manufacturing Technology, Inc. is going to take one of their existing machines and upgrade it. Their other machine is about five to ten years old and needs to be upgraded, so both machines will go on line. This will -7- South Bend Redevelopment Commission Regular Meeting - October 4, 1996 6. NEW BUSINESS (Cont.) b. continued.... create new employment opportunities and maintain existing employment opportunities. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and carried, the Commission adopted Resolution No. 1463, a Resolution approving an application for personal property tax deduction for property located at 1702 W. Washington. Mr. Faccenda abstained from the vote. c. Commission approval requested for Resolution No. 1464, a Resolution of the South Bend Redevelopment Commission determining to pay certain expenses incurred for local public improvements in or serving the West Washington - Chapin Allocation Area (South Bend Allocation Area No. 7) from the West Washington- Chapin Allocation Area (South Bend Allocation Area No. 7) Special Fund. Mrs. Kolata noted that this resolution sets a public hearing for October 18, 1996 at 10:00 a.m. to appropriate $4,985.35. She stated that this is the balance from the tax increment that has been collected in the West Washington area. The appropriation will be used to reimburse the Department of Code Enforcement for some of their costs associated with demolition of 505 W. Washington. A COMMISSION ADOPTED RESOLUTION NO. 1463, A RESOLUTION APPLICATION APPROVING A PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1702 W. WASHINGTON South Bend Redevelopment Commission Regular Meeting - October 4, 1996 6. NEW BUSINESS (Cont.) c. continued.... Upon a motion by Mr. Hunt, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1464, a Resolution of the South Bend Redevelopment Commission determining to pay certain expenses incurred for local public improvements in or serving the West Washington - Chapin Allocation Area (South Bend Allocation Area No.7) from the West Washington - Chapin Allocation Area (South Bend Allocation Area No.7) Special Fund. d. Commission approval requested for Resolution No. 1465, a Resolution of the South Bend Redevelopment Commission determining to pay certain expenses incurred for local public improvements in or serving the South Bend Central Allocation Area (South Bend Allocation Area No.1) from the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) Special Fund. Mrs. Kolata noted that this resolution sets a public hearing for October 18, 1996 at 10:00 a.m. in order to consider a resolution appropriating $250,000 for expenses incurred in the South Bend Central Development Area. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1465, a Resolution of the South Bend Redevelopment Commission determining In COMMISSION ADOPTED RESOLUTION NO. 1464, A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION DETERMINING TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE WEST WASHINGTON - CHAPIN ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO.7) FROM THE WEST WASHINGTON - CHAPIN ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO.7) SPECIAL FUND South Bend Redevelopment Commission Regular Meeting - October 4, 1996 6. NEW BUSINESS (Cont.) d. continued.... to pay certain expenses incurred for local public improvements in or serving the South Bend Central Allocation Area (South Bend Allocation Area No. 1) from the South Bend Central Allocation Area (South Bend Allocation Area No. IA) Special Fund. e. Commission approval requested for Resolution No. 1466, a Resolution of the South Bend Redevelopment Commission determining to pay certain expenses incurred for local public improvements in or serving the Airport Economic Development Area Allocation Area No. 1 ( "Allocation Area No. 1") from the Airport Economic Development Area Allocation Area No. 1 Special Fund (The "Allocation Fund "). Mrs. Kolata noted that this resolution sets a public hearing for October 18, 1996 at 10:00 a.m. to appropriate $200,000 of funds in the Airport Economic Development Area. Upon a motion by Mr. Donoho, seconded by Mr. Hojnacki and unanimously carried, the Commission adopted Resolution No. 1466, a Resolution of the South Bend Redevelopment Commission determining to pay certain expenses incurred for local public improvements in or serving the Airport Economic Development Area Allocation Area No. 1 ( "Allocation Area A -10- COMMISSION ADOPTED RESOLUTION NO. 1465, A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION DETERMINING TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 1) FROM THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. IA) SPECIAL FUND COMMISSION ADOPTED RESOLUTION NO. 1466, A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION DETERMINING TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE AIRPORT ECONOMIC DEVELOPMENT AREA ALLOCATION AREA NO. I ( "ALLOCATION AREA NO. 1 ") FROM THE AIRPORT ECONOMIC DEVELOPMENT AREA ALLOCATION AREA NO. 1 SPECIAL FUND (THE "ALLOCATION FUND ") South Bend Redevelopment Commission Regular Meeting - October 4, 1996 6. NEW BUSINESS (Cont.) e. continued.... No. V) from the Airport Economic Development Area Allocation Area No. 1 Special Fund (The "Allocation Fund "). f. Commission approval requested for Resolution No. 1470 related to acquisition of property located in the South Bend Central Development Area. Mrs. Kolata noted that this resolution authorizes the Director to send a purchase offer for the property at 529 Crescent. The owner of the property is Dennis Hartman. She stated that this resolution is somewhat different than the resolutions the Commission usually consider. Resolution No. 1470 does not authorize the director to encourage a counter offer and does not provide for the use of Eminent Domain. The purchase offer would be in the amount of $40,000 payable in annual installments of $10,000 beginning on November 1, 1996 and the next three years. Mrs. Kolata noted that the Redevelopment staff had a discussion with the owner of the building, Mr. Hartman. The building is immediately adjacent to the property that was acquired from Design Packaging. a -11- South Bend Redevelopment Commission Regular Meeting - October 4, 1996 6. NEW BUSINESS (Cont.) f. continued.... Upon a motion by Mr. Donoho, seconded by Mr. Hojnacki and unanimously carried, the Commission adopted Resolution No. 1470 related to acquisition of property in the South Bend Central Development Area. g. Commission approval requested for Renewal of East Race Waterway Trademark. Mrs. Kolata noted that in the mid -80's the Commission registered a trade mark for the East Race Waterway. She stated that it is time for the trademark renewal and it needs to be submitted by February 1997. Upon a motion by Mr. Hunt, seconded by Mr. Faccenda and unanimously carried, the Commission approved the request for Renewal of East Race Waterway Trademark. h. Commission approval requested for Certificate of Completion to Richard Allen for property located in the Sample -Ewing Development Area. Mrs. Kolata noted that this piece of property is on the corner of Main Street and Broadway Street. Richard Allen has completed the project and is now in the process of constructing the second phase. Mrs. Kolata noted that the Redevelopment staff had concerns -12- COMMISSION ADOPTED RESOLUTION NO. 1470 RELATED TO ACQUISITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA COMMISSION APPROVED THE REQUEST FOR RENEWAL OF EAST RACE WATERWAY IN South Bend Redevelopment Commission Regular Meeting - October 4, 1996 6. NEW BUSINESS (Cont.) h. continued.... regarding the quality of landscaping but since then it has been improved and the staff would like to issue the Certificate of Completion and then refund the performance guaranty to Richard Allen. Upon a motion by Mr. Hojnacki, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Completion to Richard Allen for property located in the Sample -Ewing Development Area. I. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 743 N. Blaine. (Housing Development Corporation) Mrs. Kolata noted that this Certificate of Waiver forgives $750.00 as of October 1, 1996. Upon a motion by Mr. Faccenda, 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 743 N. Blaine. (Housing Development Corporation) j. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 237 South Kaley. (Daniel J. Kois) 14 -13- COMMISSION APPROVED THE CERTIFICATE OF COMPLETION TO RICHARD ALLEN FOR PROPERTY LOCATED IN THE SAMPLE -EWING DEVELOPMENT AREA COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 743 N. BLAINE (HOUSING DEVELOPMENT CORPORATION) A South Bend Redevelopment Commission Regular Meeting - October 4, 1996 6. NEW BUSINESS (Cont.) j. continued.... Mrs. Kolata asked permission to table item 6.j. until October 18, 1996. There were no objections and item 6.j. was tabled. k. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 202 E. Haney. (Jimmy & Carol Garcia) Mrs. Kolata explained that the loan to Jimmy & Carol Garcia is in the amount of $18,100 at 4% interest for 20 years with monthly payments of $109.68. The grant is in the amount of $11,708.84. Upon a motion by Mr. Hunt, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property located at 202 E. Haney. (Jimmy & Carol Garcia) 7. PROGRESS REPORTS Mrs. Kolata noted that a house in the southeast area located at 1214 Marietta was lifted up off the ground and probably will be moved next week. This is one of the house moves. The next house move is anticipated to begin next week. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for October 18, 1996 at 10:00 a.m. -14- ITEM 61 WAS TABLED COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 202 E. HANEY (JIMMY & CAROL GARCIA) NEXT COMMISSION MEETING South Bend Redevelopment Commission Regular Meeting - October 4, 1996 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Faccenda made a motion that the meeting be adjourned. Mr. Hojnacki seconded the motion and the meeting was adjourned at Paula N. Auburn, President 14 -15- ADJOURNMENT Ann E. Kolata, Director