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HomeMy WebLinkAboutRM 03-21-97SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING March 21, 1997 10:00 a.m. Presiding: Robert W. Hunt President 1. ROLL CALL 1308 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana Members Present: Mr. Robert W. Hunt, President Mr. Michael Donoho, Vice - President Ms. Paula N. Auburn, Secretary Ms. Eugenia Schwartz Members Absent: Legal Counsel: Mr. Philip J. Faccenda Ms. Anne Bruneel Redevelopment Staff: Mrs. Ann E. Kolata, Director Ms. Vangelean Binion, Recording Secretary Mr. James Riggs, Economic Development Specialist Ms. Amy Tweeten, Economic Development Specialist Business Assistance: Mr. Mike Beitzinger, Economic Development Specialist Others: Mr. Bill Groome, Maaco Mr. Hunt noted that the Executive Session will continue immediately following adjournment of the Regular Meeting. 2. APPROVAL OF MINUTES a. Commission approval requested for the Minutes of the Regular Meeting of March 21, 1997. Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Commission approved the Minutes of the Regular Meeting of March 21, 1997. H:\ HOME \CPHIPPS \WPDATA \COMMSN\032197.MIN ' 1' COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF MARCH 21, 1997 South Bend Redevelopment Commission Regular Meeting - March 21, 1997 3. APPROVAL AND RATIFICATION OF CLAIMS Redevelopment Commission Claims submitted March 21, 1997, for ratification and approval. ADMIN 1997 (212 BOMA $290.00 Gene's Camera Store $20.04 East Race Printing $29.80 360 Communications $74.10 National Development Council $765.00 NBD Bank $130.39 Petty Cash $81.00 CADD Management & Integration Corp $4,475.00 East Race Printing $9.72 Indiana Chapter of NAHRO $30.00 Insty -Prints $7.50 City of South Bend $5.24 Baker & Daniels $664.50 City of South Bend $4,475.00 AIRPORT TIF REVENUE (324 Peirce & Associates $1,100.00 SAMPLE- EWING DEVELOPMENT AREA (414 York Title & Escrow $100.00 Disaster Services Inc. $800.00 N.I.P.S.CO $137.81 York Title & Escrow, Inc. $50.00 South Bend Tribune $12.42 DEBT SERVICE SBCDA TIF (415) Bank One $3,000.00 S.B.C.D.A. T.I.F. GENERAL ACCOUNT(420 Real Estate Management Corp. $1,658.35 Real Estate Management Corp $727.37 Superior Waste Systems $65.80 Femco Inc. $26.00 South Bend Water Works $124.53 H:\ HOI vfE \CPHIPPS \WPDATA \COMMSM032197.MIN -2- South Bend Redevelopment Commission Regular Meeting - March 21, 1997 3. APPROVAL OF CLAIMS (Cont.) S.B.C.D.A. T.I.F. GENERAL ACCOUNT(420) American Electric Power Walker Parking Consultant REDEVELOPMENT GENERAL (433) Baker & Daniels Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved and ratified the Claims submitted March 21, 1997, and ordered the checks to be released. Ms. Schwartz abstained on the Claims from Real Estate Management and Walker Parking Consultants. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS a. Commission approval requested for proposal from Warner and Sons for professional services related to the Dreisbach building in the South Bend Central Development Area. Ms. Kolata noted that several weeks ago someone broke into the Dreisbach building and spilled a container that contained some oil; it needs to be cleaned up. She noted that two proposals were received. The staff recommends hiring Warner & Sons, Inc to clean up the spill. They estimated that the cost would not exceed $2,000 APW H:\ HOME\ CPHIPPS \WPDATA \COMMSN\032197.MIN -3- $312.29 $26,646.02 $15,762.78 COMNIISSION APPROVED AND RATIFIED THE CLAIMS SUBMITTED MARCH 21, 1997, AS AMENDED, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Regular Meeting - March 21, 1997 5. OLD BUSINESS (Cont.) a. continued.... She noted that related to the conversation at the last meeting on environmental work, she feels that this clean up of the building needs to be done by the Commission. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the proposal from Warner & Sons, Inc. for professional services related to the Dreisbach building in the South Bend Central Development Area. 6. NEW BUSINESS a. Commission approval requested for Resolution No. 1499 approving an application for real property tax deduction for property located at 250 E. Sample Street. (Davis and Groome, an Indiana Partnership) Mike Beitzinger gave the staff report. Davis and Groome, an Indiana Partnership is proposing to renovate the old Railroad Salvage buildings at 250 E. Sample Street. The project consists of approximately $100,000 of physical improvements to the two buildings, so they can be used as a Maaco Auto Painting and Bodywork Center. The larger building is approximately 16,000 sft, and improvements will include a fully enclosed paint booth, an explosion proof paint storage room, a compressor room, a customer lobby, three offices, ADA H:\ HOME\ CPHIPPS \WPDATA \COMMSN\032197.MIN -4- COMMISSION APPROVED THE PROPOSAL FROM WARNER & SONS, INC. FOR PROFESSIONAL SERVICES RELATED TO THE DREISBACH BUILDING IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - March 21, 1997 6. NEW BUSINESS (Cont.) a. continued.... compliant restrooms and a training room. The smaller building, approximately 8,000 sft., will have upgraded lighting and be used for overnight auto storage. Per the petition, it is estimated that this project will create ten (10) new, permanent, full - time jobs representing a new annual payroll of $201,440. A review of the tax abatements previously granted finds that Davis and Groome has not been granted any previous tax abatement consideration. The building commissioner has reviewed AW the petition and finds the property to be properly zoned for the proposed project. 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, the latter of which is required for tax abatement eligibility. A review of the South Bend Redevelopment areas finds that the property is located in the Sample - Ewing Development Area, which is a Tax Incremental Allocation Area, therefore, the petition for real property tax abatement must be first approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that Davis and Groome, an Indiana Partnership meets the qualifications for a six (6) year real property tax abatement. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\032197.MIN -5- South Bend Redevelopment Commission Regular Meeting - March 21, 1997 6. NEW BUSINESS (Cont.) a. continued.... With the project cost of $100,000, the taxes generated, without abatement, would be approximately $28,463. With abatement, the taxes would be approximately $16,730. Therefore, the cost of the abatement would be approximately $11,733. Mr. Groome noted that Maaco is a national franchise incorporated into 500 centers throughout the United States and Canada. It specializes in auto painting, opposed to a regular body shop. The difference between the two is the price it would cost to get an automobile painted. He noted that customer service and customer appearance is very important to Maaco. He passed out a booklet that was published in 1994 by Maaco. It listed information about Maaco and the operation of their company. Mr. Groome showed drawings of the building to the Commission. He noted that the building will be gray with a blue stripe on the front and one side of the building. There will be a monument -style sign in the front of the building in the grass area. He noted that there's a chain link fence on the windows for protection purposes, which may be taken down. Landscaping will be done on the outside of the building. On the inside of the building, there will be a customer service area that will be customer friendly. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\032197.MIN -6- South Bend Redevelopment Commission Regular Meeting - March 21, 1997 6. NEW BUSINESS (Cont.) a. continued.... Ms. Kolata noted that the site is at Sample and Carroll Street. The main building has a parking area and a drive entrance off of Sample Street. On the west side of the site, there's a concrete block building. The property appears to go all the way through to Ohio Street but it doesn't. St. Vincent De Paul owns the Ohio Street frontage. This is a very tight site. She noted that in the past when other individuals came and looked at the buildings they raised concerns about truck maneuverability. It is a very difficult site for truck maneuvering. She noted that this is a good site for this proposed project. She asked Mr. Groome if he intends to do anything with the second building. He noted that at this time he doesn't intends to do anything with the second building. Maaco intends to use the main building only at this time. He noted that the main building has more than enough space for their project. The main building has enough space to park some cars inside it. Ms. Kolata noted that to the south of Ohio Street is the Juvenile Justice Center. She noted that the Juvenile Justice Center, the City of South Bend and other businesses in the area have made significant investments. Maaco also will be making a significant investment to the area. She noted that she would like to see some landscaping done to improve the appearance of the building. H:\ HOME \CPHIPPS \WPDATA \COMMSN\032197.MIN -7- South Bend Redevelopment Commission Regular Meeting - March 21, 1997 6. NEW BUSINESS (Cont.) a. continued.... She noted that the City will be working with other businesses along Ohio Street to improve the back of their property. Mr. Hunt asked if there any environmental requirements related to Maaco's proposed project. Mr. Groome noted that if there are environmental requirements that Maaco will comply with those requirements. Ms. Schwartz asked who will operate the business. Mr. Groome noted that Mr. Davis and himself will be operating the business together. They'll keep close contact with each other regarding business operations. Mr. Hunt asked if Mr. Davis and Mr. Groom were in this type of business in Kokomo. Mr. Groome responded that Mr. Davis and himself were bankers. Mr. Groome was in banking for twenty years. Ms. Schwartz asked about zoning requirements for screening parking lots. Ms. Bruneel noted that in conjunction with an automotive repair service center, there is a requirement for an opaque fence and a required fence height. She noted that she would have to look into it to see if this proposed project falls within zoning requirements for screening parking lots. Ms. Kolata noted that the Building Department has begun reviewing the plans, but she was unsure if it has been completed. The Building Department Awk H:\ HOME\ CPHIPPS \WPDATA \COMMSN\032197.1%UN -8- South Bend Redevelopment Commission Regular Meeting - March 21, 1997 6. NEW BUSINESS (Cont.) a. continued.... would determine if this project falls within zoning requirements for screening parking lots. Ms. Bruneel noted that there are proposed amendments to the municipal code requiring that an opaque fence be wood or plastic slats, eliminating the hedge. Ms. Kolata noted since Maaco will be storing cars inside the building, they may not be affected by the zoning requirements for screening parking lots. Ms. Schwartz noted that she has concerns regarding tax abatements and Maaco fulfilling the requirements requested by the Commission related to landscaping and beautification of the site. She noted that she would be willing to put forward a motion in Maaco's favor, if they agree to do what is required of them. Mr. Groome noted the background of Mr. Davis and himself, as bankers, appearance and beautification are important issues to them. He is willing to comply with any demands of the South Bend Redevelopment Commission and the Redevelopment staff. Ms. Kolata noted that the staff will be meeting with some of the businesses that back up to Ohio Street. Those businesses need to do some work on the back of their property. She noted that what the Commission is demanding of Maaco, also will be demanded of other businesses in this area. She noted that a large investment has been made in this area. Ziker Cleaners has expanded and made a Awk H:\ HOME\ CPHMPS \WPDATA \COMMSN\032197.MIN -9- South Bend Redevelopment Commission Regular Meeting - March 21, 1997 6. NEW BUSINESS (Cont.) a. continued.... significant investment in the area as well as Mossburg Printing. Ms. Auburn asked how long Maaco has been in business. Mr. Groome noted that Maaco has been in business for 25 years. Upon a motion by Ms. Schwartz, COMMISSION ADOPTED RESOLUTION NO. 1499 seconded by Mr. Donoho and APPROVING AN APPLICATION FOR TAX unanimously carried, the Commission DEDUCTION FOR PROPERTY LOCATED AT 250 E. adopted Resolution No. 1499 approving SAMPLE STREET. (DAVIS AND GROOME, AN INDIANA PARTNERSHIP) an application for tax deduction for property located at 250 E. Sample Street. (Davis and Groome, an Indiana Partnership) b. Commission approval requested for an Amendment to the Contract with Lawson - Fisher Associates P.C. for professional services related to the East Race North Walkway Phase H in the South Bend Central Development Area. Ms. Kolata noted that this is for a walkway that will extend from where it currently ends at the north end of Madison Center, up to and past the new Children's Center, and east on vacated Hagerty Street to Niles Avenue. She noted that this project is already designed but there are certain things that Lawson - Fisher needs to do. Lawson - Fisher need the Department of Transportation's approval, as well as, fulfilling some environmental H:\ HOME \CPHIPPS \WPDATA \COMMSN\032197.MIN -10- South Bend Redevelopment Commission Regular Meeting - March 21, 1997 6. NEW BUSINESS (Cont.) b. continued.... requirements and construction management. She noted that this is an Amendment to the Contract from 1992. The cost is not to exceed $8,000. She originally thought that the amount was high, but she and Carl Littrell reviewed this with Lawson - Fisher and believe the amount is appropriate. The staff recommends hiring Lawson - Fisher so that they can move forward with the project. She noted that the project will go out to bid once the Amendment is approved and the approvals are received from INDOT. She explained that a grant was received from ISTEA. Construction is to take place this year. Upon a motion Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the Amendment to the Contract with Lawson - Fisher Associates P.C. for professional services related to the East Race North Walkway Phase II in the South Bend Central Development Area. c. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 803 W. Washington. (John Friedline) Ms. Kolata noted that this Certificate of Waiver forgives $4,450 of as July 24, 1990, 1991, 1992, 1993, 1994, 1995 and 1996. H:\ HOME \CPHIPPS \WPDATA \COMMSN\032197.MIN -11- CONMSSION APPROVED THE AMENDMENT TO THE CONTRACT WITH LAWSON - FISHER ASSOCIATES P.C. FOR PROFESSIONAL SERVICES RELATED TO THE EAST RACE NORTH WALKWAY PHASE II IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - March 21, 1997 6. NEW BUSINESS (Cont.) c. continued.... Upon a motion by Ms. Auburn, 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 803 W. Washington. (John Friedline) d. Commission approval requested for proposal for irrigation system repair in the Airport Economic Development Area. Ms. Kolata noted that an irrigation system was installed on Nimtz Parkway for landscaping purposes. The irrigation system was installed without tracer wires as tracer wires were not part of the original specifications. She noted that some of the pipes were cut by American Electric Power and Ameritech, and they need to be repaired. The staff recommends hiring H. S. Altman to repair the irrigation system. Mr. Donoho aske if the Commission's specifications called for as -built drawings. Ms. Kolata noted that the as -built drawings were provided but did not include depth information. Mr. Donoho noted that he would like the as -built drawings issue resolved. Ms. Kolata noted that H. S. Altman will provide as- built drawings. Ms. Bruneel noted that H.S. Altman was the subcontractor to Wilsons, who was the the City's landscape contractor. She noted that the City's legal department has been in a three H:\ HOME\ CPHIPPS \WPDATA \COMMSN\032197.MIN -12- COMMI SSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 803 W. WASHINGTON. (JOHN FRIEDLINE) South Bend Redevelopment Commission Regular Meeting - March 21, 1997 6. NEW BUSINESS (Cont.) d. continued.... year battle with Wilson and have been holding retainage from Wilson, that H.S. Altman has a claim against, as a subcontractor to Wilson. H.S. Altman was never paid the balance for the work that was completed by them, as a subcontractor to Wilson. Ms. Kolata noted that once the irrigation system is fixed and operational, it will be the responsibility of the Owner's Association to maintain it. Mr. Hunt noted that he is concerned with H.S. Altman. He feels that if H.S. Altman didn't advise the Commission as to proper installation of the tracer wire, for metal detecting purposes, they should be responsible for any damages done to the sprinkler system. Ms. Kolata noted that the City hired Wilson's and Wilson's hired H.S. Altman. Ms. Bruneel noted that she was uncertain if H.S. Altman had obligations to register their underground facilities. Ms. Kolata noted that H.S. Altman may have done that but may not have been accurate, or the utility companies may have ignored it. Mr. Donoho asked how many breaks are in the pipelines. Ms. Kolata noted that they were not sure. Mr. Donoho asked how many areas were installed. Ms. Kolata noted that both sides of Nimtz Parkway were landscaped, from Mayflower to the bypass. JAPN H:\ HOME \CPHMPS \WPDATA \COMMSN\032197.MIN -13- South Bend Redevelopment Commission Regular Meeting - March 21, 1997 6. NEW BUSINESS (Cont.) d. continued.... Ms. Kolata noted that American Electric Power, NIPSCO and Ameritech went through these areas. She noted that American Electric Power and Ameritech both did some major work last year and then they crossed over to where the Jack Young building is located. Ms. Kolata noted that the landscaping was approximately $400,000, which included the irrigation system. Ms. Bruneel noted that Bob Allen and Carl Littrell were satisfied with the work done by H.S. Altman. James Riggs noted that Ameritech and American Electric Power are responsible for cutting the sprinkler system. He noted that Ameritech went all the way along Nimtz Parkway over to the John Sullivan building, then all the way to the Gonderman property with their lines. American Electric Power did the same in two directions and then they crossed over to the Jack Young building. James Riggs noted that there are numerous places where the pipes have been cut. He noted that in most cases, it will be a matter of digging up the dirt and replacing a section of pipe. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the proposal from H.S. Altman for irrigation system repair in the Airport Economic Development Area. H:\ HOME \CPHIPPS \WPDATA \COMMSN\032197.MIN -14' COMNIISSION APPROVED THE PROPOSAL FROM H.S. ALTMAN FOR IRRIGATION SYSTEM REPAIR IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - March 21, 1997 6. NEW BUSINESS (Cont.) d. continued.... Mr. Donoho made a motion to investigate the damages caused by a certain party and hold them responsible, seconded by Ms. Auburn and carried. Ms. Schwartz abstained. e. Staff report on acquisition of property in the Sample -Ewing Development Area. Ms. Kolata noted that the staff received five counter offers. Ms. Kolata noted that the first counter offer is for property located at 737 East AW Pennsylvania Street. The counter offer is from Tyler E. Osler and Joe B. Merriweather in the amount of $17,500. The original purchase offer was $16,000. The staff recommends accepting the counter offer. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the counter offer from Tyler E. Osler and Joe B. Merriweather in the amount of $17,500 for property located at 737 E. Pennsylvania Street. Ms. Kolata noted that the next counter offer is for property located at 734 E. Wenger Street. The counter offer is from Edwin J. and Sandra K. Dominiak in the amount of $27,500. The original purchase offer was $26,000. The staff recommends accepting the counter offer. H:\ HOME \CPHWPS \WPDATA \COMMSN\032197.MIN -15- COMMISSION APPROVED THE COUNTER OFFER FROM TYLER E. OSLER AND JOE B. MERRIWEATHER IN THE AMOUNT OF $17,500 FOR PROPERTY LOCATED AT 737 E. PENNSYLVANIA STREET South Bend Redevelopment Commission Regular Meeting - March 21, 1997 6. NEW BUSINESS (Cont.) e. continued.... Upon a motion by Ms. Schwartz, COMMISSION ACCEPTED THE COUNTER OFFER seconded by Mr. Donoho and FROM EDWIN J. AND SANDRA K. DOMINIAK IN unanimously carried, the Commission THE AMOUNT OF $27,500 FOR PROPERTY LOCATED AT 734 E. WENGER STREET accepted the counter offer from Edwin J. and Sandra K. Dominiak in the amount of $27,500 for property located at 734 E. Wenger Street. Ms. Kolata noted that the third counter offer is for property located at 250 E. Wenger Street. This is a residential, vacant lot. The counter offer is from Emery M. Horvath in the amount of $1,000. The original purchase offer was $775.00. The staff recommends accepting the counter offer. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission accepted the counter offer from Emery M. Horvath in the amount of $1,000 for property located at 250 E. Wenger Street. Ms. Kolata noted that the next counter offer is for property located at 251 E. Wenger Street. This is a residential, vacant land. The counter offer is from Emery Horvath in the amount of $1,000. The original purchase offer was $775.00. The staff recommends accepting the counter offer. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission accepted the counter from Emery Horvath H:\ HOME\ CPHIPPS \WPDATA \COMMSN\032197.MIN -16- COMMISSION ACCEPTED THE COUNTER OFFER FROM EMERY M. HORVATH IN THE AMOUNT OF $1,000 FOR PROPERTY LOCATED AT 250 E. WENGER STREET South Bend Redevelopment Commission Regular Meeting - March 21, 1997 6. NEW BUSINESS (Cont.) e. continued.... in the amount of $1,000 for property located at 251 E. Wenger Street. Ms. Kolata noted that the last counter offer is for property located at 733 E. Pennsylvania Street. The counter offer is from Jose Lara and Maria Lara in the amount of $19,500. The original purchase offer was $17,500. The staff recommends accepting the counter offer. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission accepted the counter offer from Jose Lara and Maria Lara in the amount of $19,500 for property located at 733 E. Pennsylvania Street. 7. PROGRESS REPORTS Ms. Kolata passed out copies of the South Bend Developers Handbook that Amy Tweeten was responsible for revising. The next Redevelopment Commission meeting of April 4, 1997 will be held at the Upper Deck of the Coveleski Stadium. A "Thank You" celebration and press conference will be held at the Coveleski Stadium. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\032197.MIN -17- COMMISSION ACCEPTED THE COUNTER FROM EMERY HORVATH IN THE AMOUNT OF $1,000 FOR PROPERTY LOCATED AT 251 E. WENGER STREET COMMISSION ACCEPTED THE COUNTER OFFER FROM JOSE LARA AND MARIA LARA IN THE AMOUNT OF $19,500 FOR PROPERTY LOCATED AT 733 E. PENNSYLVANIA STREET South Bend Redevelopment Commission Regular Meeting - March 21, 1997 8. NEXT COMMISSION MEETING: The next Regular Meeting of the NEXT COMMISSION MEETING Redevelopment Commission is scheduled for April 4, 1997 at 10:00 a.m. at the Coveleski Stadium. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Donoho made a motion that the meeting be adjourned. Ms. Schwartz seconded the motion and the meeting was adjourned at 11:15 a.m. G� Ann E. Kolata, Director H:\ HOME\ CPHIPPS \WPDATA \COMMSN\032197.MIN -18- ADJOURNMENT 1� Robert W. Hunt, President