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HomeMy WebLinkAboutRM 05-02-971 LM SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING May 2, 1997 1308 County -City Building 10:00 a.m. 227 W. Jefferson Boulevard Presiding: Robert W. Hunt South Bend, Indiana President 1. ROLL CALL Members Present: Mr. Robert W. Hunt, President Mr. Michael Donoho, Vice - President Ms. Paula N. Auburn, Secretary Ms. Eugenia S. Schwartz Mr. Philip J. Faccenda Legal Counsel: Ms. Anne Bruneel Redevelopment Staff: Mrs. Ann E. Kolata, Director Ms. Vangelean Binion, Recording Secretary Ms. Amy Tweeten, Economic Development Specialist Ms. Pamela Matchett, Economic Development Specialist Mr. Owen Rock, Economic Development Specialist Business Assistance: Mr. Mike Beitzinger, Economic Development Specialist Bureau of Housing: Ms. Ernestine Ligon Media: Mr. Don Porter, South Bend Tribune Others: Mr. Rick Milton, American Homes Dreams, Inc. Mr. Randy Rompola, Banker & Daniels Ms. Margaret King Mr. Duke Jones Mr. Brian Godfrey, Blackthorn Golf Course Mr. Hunt noted that the Executive Session will continue immediately following adjournment of the Regular Meeting. 4- i South Bend Redevelopment Commission Regular Meeting - May 2, 1997 2. APPROVAL OF MINUTES a. Commission approval requested for Minutes of Regular Meeting of April 16,1997. Upon a motion by Ms. Auburn, COMMISSION APPROVED THE MINUTES OF THE seconded by Mr. Doncho and REGULAR MEETING OF APRIL 16, 1997 unanimously carried, the Commission approved the Minutes of the Regular Meeting of April 16, 1997. 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted May 2, 1997, for approval. ADMIN 1997 (212 York Title & Escrow, Inc $170.00 Insty Prints $15.00 Liability Ins. (226) $2,142.90 Petty Cash $109.28 AIRPORT TIF REVENUE (324) South Bend Drafting $498.00 American Electric Power $6.35 SAMPLE- EWING DEVELOPMENT AREA 1414 Grauvogel & Associates $6,404.00 Frank Holtsclaw III $2,500.00 Frank Holtsclaw III & Chris & Cheryl McCarthy $3,500.00 Petty Cash $157.34 Gene Meredith $1,250.00 Gene Meredith & Edwin J Dominiak $4,000.00 Jose & Maria Lara $16,826.34 St. Joseph County Treasurer $257.38 Jose & Maria Lara & Community Wide Federal Credit Union $2,647.64 Isaiah Cathey Jr. $1,625.60 Jose & Maria Lara & St. Joseph Title Corp $21,082.00 Elworth E. Perkins & Rosa B. Perkins $19,774.64 Warner & Sons $65,535.00 C -2- South Bend Redevelopment Commission Regular Meeting - May 2, 1997 3. APPROVAL OF CLAIMS (CONT.) S.B.C.D.A. T.I.F. GENERAL ACCOUNT(420) Superior Waste Systems Howard Park Hardware Rose Exterminating S.B.C.D.A. T.I.F. GENERAL ACCOUNT(420) Real Estate Management Corp N.I.P.S.CO American Electric Power BLACKTHORN GOLF COURSE (619) Meadowbrook Golf Management Inc Upon a motion by Mr. Donoho, seconded by Ms. Auburn and carried, the Commission approved the Claims submitted May 2, 1997 and ordered the checks to be released. Ms. Schwartz abstained on the Real Estate Management Claim. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS Ms. Kolata asked permission to add one item to the agenda. There were no objections and item 6.s. was added. C $65.80 $17.99 $40.00 $1,131.12 $571.01 $811.80 $6,950.00 COMMISSION APPROVED THE CLAIMS SUBMITTED MAY 2, 1997 AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS ADDED ITEM 6.S. South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) a. Commission approval requested for Resolution No. 1506 approving a proposed amended and restated lease between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission for certain land and public improvements, approving preliminary plans, specifications and cost estimates, setting a public hearing on the proposed amended and restated lease pursuant to IC 36 -7 -14 -25.2, and authorizing publication of notice of the public hearing. Ms. Kolata noted that this resolution is related to the transformation of the Morris Civic Auditorium to the Morris Performing Arts Center. This action will begin the bond process. Ms. Kolata introduced Duke Jones of 1 st Source Bank, president of the Entertainment District Board, along with Margaret King who has been working diligently for a number of years on the fundraising efforts for the Morris Performing Arts Center project. Ms. King stated that she started working as one of three fund drive co- chairs along with Jerry Hammes and Dan Fitzpatrick. She noted that they're very close to the $5 million mark in pledges. So far, they've received $1.5 million in pledges that have been put into CD's and the interest earned C South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) a. continued.... from the CD's pays for the fund drive expenses. Ms. King acknowledged all the individuals who've worked diligently bringing the Morris Performing Arts Center project together. She noted that from 1993 to 1996 they've given 76 tours of the facility to individuals and contribution committees from businesses. They have pledges and donations from businesses, foundations, individuals, and organizations such as the Broadway Theatre League and the State of Indiana. She noted that there are a total of 112 entities that have made pledges. They kicked -off the second phase of fundraising in March 1997. Phase One requested donations between $25,000 and $1 million. In this phase they're asking smaller businesses and other individuals for gifts between $5,000 and $25,000. The leadership gifts are still on- going. Ms. King noted that they're extremely pleased with this wonderful project and its progress. She noted that this will be a wonderful addition to downtown South Bend and the whole Michiana area. Almost fifty percent of the people that come to the Morris Civic Auditorium come from outside St. Joseph County. Mr. Jones stated that this has been a great project to work on and that this is one of C -5- South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) a. continued.... the largest private fundraising efforts that has taken place in this community, at least in the twenty years he's lived in South Bend. He stated that their ultimate goal is to reach $6 million dollars by the end of 1997 or early 1998. He felt that this type of project should be done more in the community. He noted that when he came to South Bend in 1974 there was little existing in downtown South Bend and since then there has been a tremendous transformation in the downtown. Ms. Kolata noted that there are three major components of this project. The stage house, the auditorium and the Palais Royale Ballroom. The first phase includes the demolition of the current stage inside the Morris Civic. The stage is very narrow, as it is only 27 feet from curtain to the back wall with little space on either side of it. She noted that the plan is to totally demolish the old stage and build a new stage house. The new stage house will be approximately 50 feet in depth. The items that limit some of the side space, with the construction of the new stage, will allow for more wing space. The stage house will be larger, taller and deeper in depth. There will be two loading docks for semi - trucks and a van access drive -up. This will be a multi- 041 -6- South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) a. continued.... story structure with dressing rooms, rehearsal space, storage areas and support spaces. This also includes theatrical rigging and equipment. The next phase is the auditorium itself. The heating and cooling system in the auditorium will be restructured in its entirety. The rest of the auditorium will have cosmetic changes which will include architectural painting, historical painting, improvements to lighting and new seating. There will be improved concession areas and restrooms. All public areas will be upgraded and improved. The third phase is the Palais Royale Ballroom. She noted that the Redevelopment Commission is currently leasing the Palais Royale, from the Redevelopment Authority and there is an existing bond issue on the building itself. This resolution won't replace the existing lease purchase agreement but will allow remodeling of the ballroom, as part of the new project. The project includes renovation of the grand stairway entrance to the ballroom, located on Colfax Street. Elevator access will be provided to the ballroom from Colfax Street, and the marquee on Colfax Street will be installed. The ballroom's heating system, electrical fixtures and lighting fixtures and the floors will be reconstructed. The entire ballroom will be repainted. The c 7- South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) a. continued.... kitchen will be designed to operate as a catering facility to give the Morris Performing Arts Center the ability to operate as an events center to hold weddings, receptions, conferences and other events of this nature. The balcony area in the Palais Royale, will become office space with at least one conference room. There have been discussions about connections between the Palais Royale and the Morris Auditorium so that the buildings can operate as one center. She noted that there will also be construction in the basement as part of the kitchen's storage area and the food preparation area will be in the basement. There's a service elevator between the basement and the ballroom area that will be used to bring up prepared food. The heating equipment for the Palais and the Morris will be located in the basement of the Palais. The existing retail shops in this area will not be affected by the construction and reconstruction process. Ms. Kolata noted that they're really pleased with this project. There has been a lot of participation from members in the community, including Robert Hunt who served on the committee for a number of years. Also, a number of individuals, not on the board, have served on various committees helping to work on the plans. Ce -8- South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) a. continued.... Ms. Kolata noted that the project's construction cost was estimated to be approximately $12.9 million. There is approximately $5 million of private contributions. The bond issue assumes bonding for not quite the full amount and will use some cash -on -hand to reduce the bond size and to make payments on the bond. Randy Rompola noted that this resolution is similar to past resolutions that have been considered by the Redevelopment Commission and the Redevelopment Authority with respect to lease purchase financing. The difference with respect to this lease is that it provides for an amended and restated lease which continues the obligation under the previous existing lease to the existing bondholders. There is a lease rental provision listed in this resolution that relates solely to the existing outstanding bond and there are provisions that list the new financing, new project and new project description. This resolution approves the amended and restated lease and approves the preliminary plans and specifications and authorizes a notice to be published on the lease hearing. That lease hearing will be scheduled at the Redevelopment Commission meeting on June 6, 1997. The resolution also authorizes the lease to be placed for public inspection prior to the lease hearing. L -9- South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) a. continued.... He noted that the two parties are the Redevelopment Commission and the Redevelopment Authority. The lease is set to not exceed 20 years with respect to the new project being presented today. The existing Palais Royale lease, which continues as part of the new lease, expires in 2004 when the previous bond issue is paid off. He noted that under the new project, the new lease could continue up to 20 years. The maximum lease term and the maximum lease rental needs to be set out for the public today. Later, the expectation is, once the bonds are sold, that the lease rental will be reduced to match the principal and interest requirements on the bonds. He noted that $695,000 is the maximum semi - annual lease rental amount. With today's interest rates that amount would be considerably less. He noted that the existing lease rental for the Palais Royale is $98,500 semi - annually and will continue through 2004. At that time the requirement will be released and what would be left is the requirement for this new project. Ms. Kolata noted that the current Palais Royale bond issue is being paid from tax increment. The new bond issue will be paid from the pledges and the County Economic Development Income Tax. There will be no property taxes used to pay for the Morris bond issue. The bond will include a provision for a general -10- South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) a. continued.... obligation backup but that is for marketing purposes only, there will be sufficient funds from the EDIT tax to pay for the bond issue without levying a tax. It's anticipated that the bond won't be sold until late 1997 or early 1998 to allow for receipt of the construction bids. Randy Rompola stated that with respect to the source of funds for the bonds, the financial advisor shows that it is possible to pay for the bond solely from EDIT taxes if pledges come in less than what is expected. The coverage is about 170% without the pledges; but the intention of Redevelopment is to use the pledges as they come in for debt service and to make -up the balance with EDIT. For the purpose of showing the ability to pay for the project without levying a tax, it's showing that financing will come solely from EDIT and then adding back in the pledges. Ms. Kolata noted that cash -on -hand will be used to reduce the bond size when the bond is finally structured. Ms. Auburn thanked all the volunteers, especially Margaret King and Duke Jones. Ms. Schwartz stated that this is a really exciting project for downtown South Bend and the community. r -11- South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) a. continued.... Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Commission adopted Resolution No. 1506 approving a proposed amended and restated lease between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission for certain land and public improvements, approving preliminary plans, specifications and cost estimates, setting a public hearing on the proposed amended and restated lease pursuant to IC 36 -7 -14- 25.2, and authorizing publication of notice of the public hearing. b. Commission approval requested for 1997 Blackthorn Golf Club Special Promotions and Marketing Promotions. Brian Godfrey, the Golf Pro at Blackthorn presented the 1997 Special Promotions. He noted that the 1997 Special Promotions are similar to the 1996 Special Promotions with one exception. In 1996, the one promotion that was offered to some companies that promoted Blackthorn's Golf Club to out - of -town players, is that if they paid for two green fees and a half -cart, they received a half -cart free. They did this to encourage out -of -town golfers to come and golf on the weekends after 12:00 p.m. He noted that the non - resident green fee is about the same as the resident green fee C, -12- COMMISSION ADOPTED RESOLUTION NO. 1506 APPROVING A PROPOSED AMENDED AND RESTATED LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT AUTHORITY AND THE SOUTH BEND REDEVELOPMENT COMMISSION FOR CERTAIN LAND AND PUBLIC IMPROVEMENTS, APPROVING PRELIMINARY PLANS, SPECIFICATIONS AND COST ESTIMATES, SETTING A PUBLIC HEARING ON THE PROPOSED AMENDED AND RESTATED LEASE PURSUANT TO IC 36 -7 -14- 25.2, AND AUTHORIZING PUBLICATION OF NOTICE OF THE PUBLIC HEARING South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) b. continued.... plus cart. Ms. Kolata noted that the Blackthorn Joint Committee reviewed the 1997 Special Promotions and Marketing Promotions and recommended them for approval. Upon a motion by Mr. Donoho, seconded COMMISSION APPROVED THE 1997 BLACKTHORN by Ms. Auburn and unanimously carried, GOLF CLUB SPECIAL PROMOTIONS AND the Commission approved the 1997 MARKETING PROMOTIONS Blackthorn Golf Club Special Promotions and Marketing Promotions. c. Commission approval requested for Amendment to Operations Policies for Blackthorn Golf Course. Ms. Kolata noted that there was one recommended addition to the 1997 Special Promotions but it was decided that it was more appropriate as a change to the Operations Policies. The Blackthorn Golf Course Joint Committee recommended that Blackthorn Corporate Park tenants, who currently receive a corporate membership at Blackthorn Golf Course, be allowed to have non - resident players playing with them, play at resident rates. This would only apply to Blackthorn Corporate Park members and not to all corporate members. Mr. Hunt asked if the Blackthorn Golf Association is a currently existing association with members on a board. -13- South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) c. continued.... Mr. Godfrey noted that the term association is an internal term and it is not an official organization. Mr. Hunt asked if they allow children under eight to ride in golf carts. Mr. Godfrey stated that they don't allow children ages eight and under to ride in golf carts. Ms. Kolata stated that she would revise the paragraph stating that children under eight are not allowed to ride in the golf carts. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the Amendment to Operations Policies for Blackthorn Golf Course. d. Commission approval requested for Contract with the City of South Bend for Community Development Block Grant funds. (CD97 -3 -1 South Gateway Improvements) Ms. Kolata stated that this is for the South Gateway Improvements in the amount of $187,000 for curb and sidewalk work in the area along Michigan and Main between Garst and Calvert Streets. She noted that the work will be concentrated around the intersection of Michigan and Indiana Streets and will work outward from that intersection. Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda and -14- COMMISSION APPROVED THE AMENDMENT TO OPERATIONS POLICIES FOR BLACKTHORN GOLF COURSE South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) d. continued.... unanimously carried, the Commission approved the Contract with the City of South Bend for Community Development Block Grant funds. (CD97 -301 South Gateway Improvements) e. Commission approval requested for Resolution No. 1504 approving an application for real property tax deduction for property located at 315 E. Broadway in the Sample Ewing Development Area. (American Home Dreams, Inc.) Ms. Kolata presented the Commission with the following letter from Jon Hunt: On May 2, 1997 the South Bend Redevelopment Commission will consider a tax abatement for American Home Dreams, Inc. (AHDI) for the development of affordable housing for first -time, lower income home buyers in the Southeast Neighborhood. AHDI is a private, non- profit company established to build or rehabilitate single-family housing in South Bend's lower income neighborhoods. I would like to note for the record, as I did in my February 10, 1997 and April 28, 1997 letters to the Board of Public Works, that 1 serve on the board of AHDI. It is anticipated that AHDI will continue to develop as an organization, including receiving designation as a 501(c)(3) non- profit entity. AHDI anticipates making C; -15- COMMISSION APPROVED THE CONTRACT WITH THE CITY OF SOUTH BEND FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS. (CD97 -301 SOUTH GATEWAY IMPROVEMENTS) South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) e. continued.... future requests to purchase vacant lots as well as additional tax abatement petitions for new single family home construction within the Southeast Neighborhood. Should you have any questions or require additional information, please call me at 235 -9371. Sincerely, Jon Hunt, Executive Director. Mike Beitzinger gave the staff report. American Home Dreams, Inc. proposes to develop a new single family residence on the above identified lot in the southeast neighborhood. The house will be co approximately 2,000 square feet with a 1,000 square foot basement and will have 3 bedrooms, 2 % baths, a patio, a porch and a two car attached garage. The home will have vinyl siding, a fully finished basement, air conditioning, security system and sodded yard. The total project cost is estimated to be $74,500. Per the petition, this is the first of as many as 16 homes to be built in this area. A review of the tax abatement records, finds that American Home Dreams, Inc. has not been granted any previous tax abatement consideration. The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed use. A review of the tax abatement maps finds that the property is not located in an area presently designated as a Tax Abatement -16- r South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) e. continued.... Impact Area. A review of the Redevelopment allocation areas finds that the property is located in the Sample Ewing Development Area which is a Tax Incremental Financing Allocation Area, therefore, the petition first requires the approval of the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance, as amended, finds that American Home Dreams, Inc. meets the qualifications for a five year real property tax abatement. With the project cost of $74,500, the taxes generated, without abatement, would be approximately $2,220.23 per year over a five year period. With abatement, the taxes would be approximately $1,602.57. Therefore, the cost of the abatement would be approximately $617.66. Mike Beitzinger introduced Rick Milton, Executive Director of American Home Dreams, Inc. Mr. Donoho asked if this is the first house of 16 houses. Mr. Milton stated that the first house completed is located at 415 E. Broadway and was rehabed. The remaining houses would result from American Home Dreams, Inc. acquiring lots transferred from the City of South Bend to American Home Dreams, Inc.; or, by acquiring additional houses on lots, have them demolished and constructing -17- South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) e. continued.... new houses on the lots. Ms. Auburn asked if American Home Dreams, Inc. projects are similar to the Garden Homes projects. Mr. Milton replied that they're not. These are two story houses that are larger than the Garden Homes houses. Ms. Auburn asked Mr. Milton if he submitted an application for the 501(c)(3). Mr. Milton stated that he has submitted an application for the 501(c)(3). Mr. Hunt stated that this type of development is good for the community. Upon a motion by Mr. Faccenda, seconded by Ms. Auburn and unanimously carried, the Commission adopted Resolution No. 1504 approving an application for real property tax deduction for property located at 315 E. Broadway in the Sample Ewing Development Area. (American Home Dreams, Inc.) f. Commission approval requested for Resolution No. 1505 accepting the transfer of real property from the City of South Bend, Indiana. Ms. Kolata noted that this is for three lots coming from the Board of Works, in the southeast neighborhood in the area -18- COMMISSION ADOPTED RESOLUTION NO. 1504 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 315 E. BROADWAY IN THE SAMPLE EWING DEVELOPMENT AREA. (AMERICAN HOME DREAMS, INC.) South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) f. continued.... between Marietta and High Streets and north of Pennsylvania. Upon a motion by Ms. Schwartz, COMMISSION ADOPTED RESOLUTION NO. 1505 seconded by Ms. Auburn and ACCEPTING THE TRANSFER OF REAL PROPERTY unanimously carried, the Commission FROM THE CITY OF SOUTH BEND, INDIANA adopted Resolution No. 1505 accepting the transfer of real property from the City of South Bend, Indiana. g. Commission approval requested for Quit -Claim Deed for property located at 239 E. Broadway in the Sample Ewing Development Area. Ms. Kolata stated that the resolution was approved at the last Redevelopment Commission meeting and at that time the Quit -Claim Deed wasn't prepared and now it requires the Redevelopment Commission's signature. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved the Quit -Claim Deed for property located at 239 E. Broadway in the Sample Ewing Development Area. h. Commission approval requested for proposal from J.F. New & Associates, Inc. for a study related to the Blackthorn Golf Course. Ms. Kolata noted that the Blackthorn Golf Course put together a capital -19- COMMISSION APPROVED THE QUIT -CLAIM DEED FOR PROPERTY LOCATED AT 239 E. BROADWAY IN THE SAMPLE EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) h. continued.... improvement program for 1997. One of the items on the program is to do a study related to a drainage issue. Mr. Hunt stated that the pond on the ninth hole previously was a dump and was cleaned -up when the golf course was built. The clean-up created a wetland. There is now concern that a liner may be needed in the pond to preserve it and the study will determine the feasibility and cost. Mr. Donoho asked how much will it cost to do the study. Mr. Hunt stated that it will cost approximately $1,500. He noted that if the liner is needed it will cost approximately $8,000 to $9,000. Ms. Schwartz stated that there is a very limited liability in paragraph 6 of the agreement. She asked if this was typical of previous arrangements with Redevelopment because she found this to be somewhat disquieting. Ms. Bruneel suggested that if the Redevelopment Commission approves the study, then approve it subject to striking paragraphs 6 and 9. Upon a motion by Ms. Schwartz, seconded by Ms. Auburn and unanimously carried, the Commission approved the proposal from J.F. New & Associates, Inc. for a study related to the Blackthorn Golf Course subject to striking paragraphs 6 and 9 of the -20- COMMISSION APPROVED THE PROPOSAL FROM J.F. NEW & ASSOCIATES, INC. FOR A STUDY RELATED TO THE BLACKTHORN GOLF COURSE South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) proposal. i. Commission approval requested for Assignment of Federal Rental Rehab Loan Agreement for property located at 1128 -1130 Lincolnway West. (Joseph MacHatton) Ms. Kolata noted that Joseph MacHatton is assigning the Rental Rehab Loan to Ali Mojarred who's purchasing the property. Ms. Schwartz asked if Joseph MacHatton is still obligated under the loan or is being released. Ms. Bruneel stated that they're assigning Joseph MacHatton's interest in the property and associated obligations under the original note to Ali Mojarred. Ms. Schwartz noted that she would approve the Assignment subject to her request that the original obligator not be released from the Assignment of Federal Rental Rehabilitation Loan Agreements when the obligator's loan is close to it's maturity date. Ms. Auburn asked if once the loan is paid -off what is done to ensure the property is kept up to code and she asked if the new obligator is under the same obligations as the original obligator and for how long? It was noted that once the loan is paid -off there is no continuing obligation for the original obligator nor the new obligator related to keeping the -21- South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) i. continued.... property up to code. Ms. Kolata noted that under the loan agreement at least fifty percent of the units have to be available to low and moderate income families but that obligation is eliminated once the loan is paid -off. Ms. Auburn asked how many properties have had the loans paid off. Ms. Kolata noted that there aren't many that have had the loans paid off. She noted that we are just beginning to see a number of loans reach the end of the ten year period. Ms. Auburn requested monitoring properties where a loan has been paid -off to ensure that it is being kept up to code. Upon a motion by Ms. Schwartz, seconded by Ms. Auburn and unanimously carried, the Commission approved the Assignment of Federal Rental Rehab Loan Agreement for property located at 1128 -1130 Lincolnway West. (Joseph MacHatton) j. Commission approval requested for Certificate of Waiver in connection with Rental Rehab Loan Program for property located at 1128 -1130 Lincolnway West. (1988 -1989) Ms. Kolata noted that the Certificate of Waiver forgives $1,740.00 as of October 22, 1988 and 1989. Upon a motion by Mr. Faccenda, -22- COMMISSION APPROVED THE ASSIGNMENT OF FEDERAL RENTAL REHAB LOAN AGREEMENT FOR PROPERTY LOCATED AT 1128 -1130 LINCOLNWAY WEST. (JOSEPH MACHATTON) South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) j. continued.... seconded by Ms. Schwartz and unanimously carried, the Commission approved the Certificate of Waiver in connection with Rental Rehab Loan Program for property located at 1128- 1130 Lincolnway West (1988 - 1989). (Joseph MacHatton) k. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 1128 -1130 Lincolnway West (1995- 1996). (Joseph MacHatton) Ms. Kolata noted that this Certificate of Waiver forgives $1,740.00 as of October 22, 1995 and 1996. Upon a motion Mr. Faccenda, seconded by Mr. Schwartz and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 1128 -1130 Lincolnway West (1995- 1996). (Joseph MacHatton) 1. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 235 East Fox Street. (Alfonso Cardenas & Northern Oak Homes) Ms. Kolata noted that this Certificate of -23- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 1128 -1130 LINCOLNWAY WEST (1988 - 1989). (JOSEPH MACHATTON) COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 1128 -1130 LINCOLNWAY WEST (1995- 1996). (JOSEPH MACHATTON) South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) 1. continued.... Waiver forgives $850.00 as of December 23, 1996. Upon a motion by Mr. Faccenda, seconded by Ms. Schwartz and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 235 East Fox Street. (Alfonso Cardenas & Northern Oak Homes) m. Commission approval requested for proposal from Williams Aerial Mapping Inc. for aerial photography in the Airport Economic Development Area. Ms. Kolata noted that an aerial photograph is needed to determine elevations in order to plan where a pedestrian/bike path will be located. The total cost for this service totals $3,115.00. Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda and unanimously carried, the Commission approved the proposal from Williams Aerial Mapping Inc. for aerial photography in the Airport Economic Development Area. n. Commission approval requested for proposal for appraisal services in the Sample Ewing Development Area. -24- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 235 EAST FOX STREET. (ALFONSO CARDENAS & NORTHERN OAK HOMES) COMMISSION APPROVED THE PROPOSAL FROM WILLIAMS AERIAL MAPPING INC. FOR AERIAL PHOTOGRAPHY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA A South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) n. continued.... Ms. Kolata noted that this is related to the Grant that the City of South Bend received from the Economic Development Administration for a feasibility study of the former Oliver Plow Works located on Chapin Street which is currently owned by Allied Products. The grant totaled $60,000 and John Stark and Owen Rock have been working on this project to find out the feasibility of converting this property into an industrial park. Two proposals were received. The first was from R.E. Pitts in the amount of AdPk $7,000. The second was from the Appraisal Group, Inc. in the amount of $19,500. The staff recommends hiring R.E. Pitts & Associates to do the appraisal. Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda and unanimously carried, the Commission approved the proposal from R.E. Pitts & Associates for appraisal services in the Sample Ewing Development Area subject to striking the seconded sentence in the second paragraph.. o. Commission approval requested for proposal for survey work in the Sample Ewing Development Area. Ms. Kolata noted that three proposals were received. One from Marbach & -25- COMMISSION APPROVED THE PROPOSAL FROM R.E. PITTS & ASSOCIATES FOR APPRAISAL SERVICES IN THE SAMPLE EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) o. continued.... Brady in the amount of $7,960. The other from Lang, Feeney & Associates, Inc. in the amount of $5,840. The last proposal from Pierce & Associates is in the amount of $9,000. The staff recommends hiring Lang, Feeney & Associates. Upon a motion by Mr. Faccenda, seconded by Ms. Auburn and unanimously carried, the Commission approved the proposal from Lang, Feeney & Associates, Inc. for survey work in the Sample Ewing Development Area. p. Commission approval requested for proposal from Arsee Engineers, Inc. for a condition survey of the State Theatre facade. Ms. Kolata noted that currently James E. Childs & Associates is doing construction specifications for repair of the State Theatre facade. An architect at James E. Childs & Associates recommended hiring an outside firm that uses fiber optics to go in behind some of the terra cotta to look at the condition of the brackets holding it on. Using the fiber optics and engineering study could give a better evaluation of which pieces need work and which ones are in proper condition. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the proposal ce -26- COMMISSION APPROVED THE PROPOSAL FROM LANG, FEENEY & ASSOCIATES, INC. FOR SURVEY WORK IN THE SAMPLE EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) p. continued.... from Arsee Engineers, Inc. for a condition survey of the State Theatre facade. q. Commission approval requested for Certificate of Completion for Charles and Hattie Pryor for property located in the Sample Ewing Development Area. Ms. Kolata noted that this Certificate of Completion is for Champion Soft Water. They have completed their landscaping and the staff recommends approving the Certificate of Completion and returning their performance guarantee. Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Commission approved the Certificate of Completion to Charles and Hattie Pryor for property located in the Sample Ewing Development Area. r. Staff report on acquisition of property in the Sample Ewing Development Area. Ms. Kolata noted that there are no counter offers to consider. s. Commission approval requested for the Southeast Youth Gardening project in the Sample Ewing Development. Ms. Kolata noted that a letter was -27- COMMISSION APPROVED THE PROPOSAL FROM ARSEE ENGINEERS, INC. FOR A CONDITION SURVEY OF THE STATE THEATRE FACADE Commission approved the Certificate of COMPLETION TO CHARLES AND HATTIE PRYOR FOR PROPERTY LOCATED IN THE SAMPLE EWING DEVELOPMENT AREA NO COUNTER OFFERS South Bend Redevelopment Commission Regular Meeting - May 2, 1997 6. NEW BUSINESS (Cont.) s. continued.... received from Dan Stoltzfus located at 409 East Broadway. She noted that he sent a letter in 1996 for a Community Southeast Youth Gardening project. She noted that the area that was gardened by Southeast Youth Gardening last year, is part of the Ivy Tech site. Mr. Stoltzfus asked that he be allowed to locate a garden on the north side of the 600 block of East Pennsylvania. Ms. Kolata noted that Mr. Stoltzfus has requested use of several lots that Redevelopment owns which will eventually be part of the park area. Since the park won't be constructed this summer, the staff recommends approving the Southeast Youth Gardending project. Upon a motion by Ms. Schwartz, seconded by Ms. Auburn and unanimously carried, the Commission approved the Southeast Youth Gardening project located in the Sample Ewing Development Area. 7. PROGRESS REPORTS Ms. Kolata noted that she had a tour of the new Family & Childrens Center building which is officially having it's ribbon cutting and dedication Sunday at 3:00 p.m. They will open the Boys & Girls Club, located in the building, on May 12, 1997. She noted that this building is very beautiful and the youth programs are exciting. ► -28- COMMISSION APPROVED THE SOUTHEAST YOUTH GARDENING PROJECT LOCATED IN THE SAMPLE EWING DEVELOPMENT AREA 4 '7 1 South Bend Redevelopment Commission Regular Meeting - May 2, 1997 Ms. Kolata noted that there was a ribbon cutting cermony at the St. Joseph County Juvenile Justice Center yesterday that Commissioners Hunt and Auburn attended. Mr. Hunt and Ms. Auburn stated this is a state of the art program. 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is scheduled for May 16, 1997 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. Ms. Schwartz seconded the motion and the meeting was adjourned t 11:15 a.m. Ann E. Kolata, Director AW -29- NEXT COMMISSION MEETING ADJOURNMENT Robert W. Hunt, President