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HomeMy WebLinkAboutRM 06-20-97SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING June 20, 1997 1308 County -City Building 10:00 P.M. 227 West Jefferson Boulevard Presiding: Robert W. Hunt South Bend, Indiana 1. ROLL CALL Members Present: Mr. Robert W. Hunt, President Ms. Paula N. Auburn, Secretary Ms. Eugenia S. Schwartz Members Absent: Mr. Michael Donoho, Vice - President Mr. Philip J. Faccenda Legal Counsel: Ms. Anne E. Bruneel Redevelopment Staff: Mrs. Ann E. Kolata, Director Ms. Vangelean Binion, Recording Secretary Mr. James Riggs, Economic Development Specialist Mr. John Stark, Economic Development Specialist Mr. Owen Rock, Economic Development Specialist Ms. Joanna Smith, Economic Development Specialist Mr. Andy Laurent, Economic Development Intern Business Assistance: Mr. Michael Beitzinger, Economic Development Specialist Others: Mr. Roman Piasecki Mr. Jim Metheny, Real Estate Mangement Mr. Michael Wojtysiak, General Sheet Metal Mr. Michael Urbanski, Garden Homes Mr. Ben Crawford, Harbor Metal Treating of Indiana Mr. Hunt noted that the Executive Session will continue immediately following the adjournment of the Regular Meeting. 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of Friday, June 6, 1997. C I. South Bend Redevelopment Commission Regular Meeting - June 20, 1997 2. APPROVAL OF MINUTES (CONT.) Upon a motion by Ms. Schwartz, seconded COMMISSION APPROVED THE MINUTES OF THE by Ms. Auburn and unanimously carried, REGULAR MEETING OF FRIDAY, JUNE 6, 1997 the Commission approved the Minutes of the Regular meeting of Friday, June 6, 1997. 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted June 20, 1997, for approval. ADMIN 1997 (212 Business Systems $1,181.18 NIPSCO $523.68 Thomas General Construction $60.00 Upper Deck, Inc. $378.78 Crystal Mountain $28.79 South Bend Drafting Supply Co. Inc. $6.75 Insty -Prints $23.10 South Bend Water Works $13.34 Ameritech $26.28 Building Department $3,931.62 AIRPORT TIF REVENUE (324 J.F. New & Associates $1,080.00 Peirce & Associates $4,367.50 CA Studios $126.00 William Aerial & Mapping $115.00 Blackthorn Golf Course $1,200.00 Storion Group LLC $4,609.17 Rieth -Riley $63,851.48 SAMPLE- EWING DEVELOPMENT AREA (414 Troyer Group $9,322.24 Rieth -Riley Construction Co. $263,117.69 Charles & Hattie Pryor & Champion Soft Water $3,302.50 York Title & Escrow Inc. $250.00 Van Vooren Construction Co. Inc. $10,851.00 C -2- South Bend Redevelopment Commission Regular Meeting - June 20, 1997 3. APPROVAL OF CLAIMS (CONT.) SAMPLE- EWING DEVELOPMENT AREA (414) Thomas General Construction American Electric Power Joshua Greene aka Joshua Graf Jayson and Dennell Wing S.B.C.D.A. T.I.F. GENERAL ACCOUNT(420) Lawson - Fisher Associates Arsee Engineers, Inc. Upon a motion Ms. Schwartz, seconded by Ms. Auburn and unanimously carried, the Commission approved the Claims submitted June 20, 1997 and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS a. Commission approval requested for Resolution No. 1511 approving an application for real property tax deduction for property located in the Sample Ewing Development Area. (G & M Properties) Mike Beitzinger gave the staff report. G & M Properties proposes to develop new single family residences on lots located at 2216, 2222 and 2230 South C $60.00 $319.89 $650.00 $650.00 $559.57 $8,900.00 COMMISSION APPROVED THE CLAIMS SUBMITTED JUNE 20, 1997 AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WERE NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - June 20, 1997 6. NEW BUSINESS (CONT.) a. continued.... Meade Street in the Rum Village Area. The homes will be approximately 1,036 square feet each with full 8 ft. insulated basement. Most homes will have an attached 12 ft. by 20 ft. garage and all homes will offer vinyl siding, stove, dishwasher, range hood and garbage disposal. Each home will be built on a minimum 40 ft. by 120 ft. lot that will be seeded upon completion of the home. The cost for each new home is estimated to be in the low $60,000 range making the total project cost approximately $187,500. A review of the tax abatement records, finds that G & M Properties has been granted three previous residential tax abatements. The first residential tax abatement was granted in August 1995 for properties located in the far northwest neighborhood. The second abatement was granted in October 1995 for properties located in the Rum Village Area. The third abatement was granted in June 1996 for fifteen properties located on South Meade Street. The building commissioner has reviewed this petition and finds that the properties to be properly zoned for the proposed use. A review of the tax abatement maps finds that the properties are not located in an area presently designated as a Tax Abatement Impact Area. A review of the Redevelopment allocation areas finds that the properties are located in the Sample- c-0 South Bend Redevelopment Commission Regular Meeting - June 20, 1997 6. NEW BUSINESS (CONT.) a. continued.... 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 finds that G & M Properties meets the qualifications for a five year real property tax abatement. With the project cost of $62,500, taxes generated for each of the five years without abatement are approximately $1,819.59. Taxes abated for each of the five years are approximately $1,602.57. Total taxes paid without the abatement would be $217.01. Michael Urbanski, representative of G & M Properties, stated that as a result of the Commission's actions on two previous tax abatements, there are eighteen families living on Meade Street. He also stated that the street was no longer enveloped with empty lots. Michael Urbanksi suggested to the Commission that they drive down Meade Street and see the results of their actions on his previous tax abatements. Mr. Hunt stated that he has driven down Meade Street and observed the newly constructed homes. He noted that they are a great improvement to the area. Upon a motion by Ms. Auburn, seconded by Ms. Schwartz and unanimously carried, the Commission adopted Resolution No. C South Bend Redevelopment Commission Regular Meeting - June 20, 1997 6. NEW BUSINESS (CONT.) a. continued.... 1511 approving an application for real COMMISSION ADOPTED RESOLUTION NO. 1511 property tax deduction for property located APPROVING AN APPLICATION FOR REAL in the Sample Ewing Development Area. PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE SAMPLE EWING DEVELOPMENT (G & M Properties) AREA b. Commission approval requested for Resolution No. 1512 approving an application for real property tax deduction for property located in the South Bend Central Development Area. (Trammell Crow MW, Inc.) Ms. Kolata stated that the petition was filed by Trammell Crow MW, Inc. and the South Bend Redevelopment Commission. She stated that the Commission needs to authorize the Director to sign the tax abatement petition. Upon a motion by Ms. Auburn, seconded by Mr. Hunt and unanimously carried, the Commission authorized the Director to sign the tax abatement petition. Ms. Schwartz voted present but abstained. Mike Beitzinger gave the staff report. The South Bend Redevelopment Commission for the benefit of Trammell Crow MW, Inc. are proposing to build a 60,000 square foot, four story office building at 130 S. Main Street directly south of the Teachers Credit Union Building. The project is part of the City's redevelopment efforts for the block. It includes an 80,000 square foot building to be owned and operated by Memorial Health System that will be C -6- South Bend Redevelopment Commission Regular Meeting - June 20, 1997 6. NEW BUSINESS (CONT.) b. continued.... located at the corner of Main Street and Jefferson Boulevard and a 650 space City owned parking garage. The parking garage will also include approximately 11,000 square feet of retail space fronting Michigan Street. The total project cost is estimated at over $20 million, while the Trammell Crow portion of the project is estimated at $6.5 million. Since this is an office development, the petitioner is unable to determine the exact number of new jobs that will be created as a result of the project. However, they have indicated that between 100 and 150 construction jobs will be created to complete the project. Also, it is estimated that between 180 and 225 people will be employed by the tenants of the new building. A review of the tax abatements previously granted finds that the South Bend Redevelopment Commission for the benefit of Trammell Crow MW, 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 project. A review of the tax abatement designation maps finds that the property is located in the Tax Abatement Impact Area, as well as the Central Business District. A review of the South Bend Redevelopment Allocation C South Bend Redevelopment Commission Regular Meeting - June 20, 1997 6. NEW BUSINESS (CONT.) b. continued.... Area finds that the property is located in the South Bend Central Development Area which is a Tax Incremental Allocation Area. Therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that the petitioner meets the qualifications for a ten year real property tax abatement. With the project cost of $6.5 million, the total taxes generated over ten years total approximately $2,156,256. The taxes abated total approximately $1,067,347. Total taxes paid total approximately $1,088,909. Jim Matheny, of Real Estate Management Corporation stated that he was speaking on behalf of Trammell Crow MW, Inc. He stated that they are looking forward to the groundbreaking ceremony and the development of the project. Upon a motion by Ms. Auburn, seconded by Mr. Hunt and unanimously carried, the Commission adopted Resolution No. 1512 approving an application for real property tax deduction for property located in the South Bend Central Development Area. (South Bend Redevelopment Commission on behalf of Trammell Crow MW, Inc.) Ms. Schwartz voted present but abstained. C -8- COMMISSION ADOPTED RESOLUTION NO. 1512 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (TRAMMELL CROW MW, INC.) South Bend Redevelopment Commission Regular Meeting - June 20, 1997 6. NEW BUSINESS (CONT.) c. Commission approval requested for Resolution No. 1513 approving an application for personal property tax deduction for property located in the South Bend Central Development Area. (Harbor Metal Treating of Indiana, Inc.) Mike Beitzinger gave the staff report. Harbor Metal Treating of Indiana, Inc. is in the business of metal treating by hardening, tempering and annealing customers tools, dies and metal products. Their project calls for the purchase and installation of a new vacuum draw furnace at an estimated cost of $200,000 and a new vacuum furnace at an estimated cost of $500,000. The two furnaces are an addition to the current furnace line and will not replace any existing equipment. Per the petitioner, the new furnaces are necessary to remain competitive in the heat treatment of manufactured dies and related metal products. The total cost of the project is estimated at $700,000. Per the petition, it is estimated that this project will create one (1) permanent new job within the first year representing an annual payroll of $24,000. The project will also maintain thirty-six (36) full time and part time jobs representing an annual payroll of $1,113,000. A review of the tax abatements previously granted finds that Harbor Metal Treating of Indiana, Inc. has been granted several previous real and personal property tax IL -9- South Bend Redevelopment Commission Regular Meeting - June 20, 1997 6. NEW BUSINESS (CONT.) c. continued.... abatements; the most recent of which were granted in May of 1994 for a three year real property abatement and for a five year personal property abatement. Harbor Metal Treating of Indiana, Inc. is in compliance with the reporting requirements for the previous abatements. 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 designation maps finds that the property is located in the Tax Abatement Impact Area. A review of the South Bend Redevelopment Allocation areas finds that the property is located in the South Bend Central 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 finds that Harbor Metal Treating of Indiana, Inc. meets the qualifications for a five (5) year personal property tax abatement. With the project cost of $700,000, the taxes generated total approximately $65,071. The taxes abated total approximately $53,533.00. The taxes paid with the abatement total approximately $11,538. Ben Crawford, plant manager for the South Bend facility, stated that the equipment will help keep them advanced Ce -10- South Bend Redevelopment Commission Regular Meeting - June 20, 1997 6. NEW BUSINESS (CONT.) c. continued.... with the changing industry. Mr. Hunt asked Ben Crawford what is the life of the equipment. Mr. Crawford stated that the life of the equipment is eight to ten years. Upon a motion by Ms. Schwartz, seconded by Ms. Auburn and unanimously carried, the Commission adopted Resolution No. 1513 approving an application for personal property tax deduction for property located in the South Bend Central Development Area. (Harbor Metal Treating of Indiana Inc.) d. Commission approval requested for Resolution No. 1514 approving an application for personal property tax deduction for property located in the Sample Ewing Development Area. (General Sheet Metal, Inc.) Mike Beitzinger gave the staff report. General Sheet Metal, Inc. has been in business since 1992 and provides metal fabricated products to the lawn and garden and towing equipment industries. The company plans on adding three major pieces of equipment, Mazak Laser, an Accurpress Brake and a 600 ton press. The total cost of the new equipment is estimated at $783,900. Per General Sheet Metal, Inc., the new equipment will allow the company to maintain existing quality APWA -11- COMMISSION ADOPTED RESOLUTION NO. 1513 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (HARBOR METAL TREATING OF INDIANA, INC.) South Bend Redevelopment Commission Regular Meeting - June 20, 1997 6. NEW BUSINESS (CONT.) d. continued.... and achieve future growth. It is estimated that this project will create ten (10) permanent new jobs within the first year representing an annual payroll of $208,000. The project will also maintain seventy (70) full time and part time jobs representing an annual payroll of $1,423,233. A review of the tax abatement records found no previous tax abatement consideration granted to General Sheet Metal, Inc. 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 designation maps finds that the majority of the property is located in the Tax Abatement Impact Area, however, a parcel lying west of the conrail tracks is not in the Tax Abatement Impact Area. A review of the South Bend 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 finds that General Sheet Metal, Inc. meets the qualifications for a five year (5) personal property tax abatement. With the project cost of $728,900, the taxes generated total approximately $72,871. The taxes abated over the five -12- South Bend Redevelopment Commission Regular Meeting - June 20, 1997 6. NEW BUSINESS (CONT.) d. continued.... years total approximately $59,950. The taxes paid with the abatement total approximately $12,921. Michael Wojtysiak stated that General Sheet Metal, Inc. needs that equipment to maintain existing quality and achieve future growth. He handed out equipment brochures to the Redevelopment Commission. Upon a motion by Ms. Schwartz, seconded by Ms. Auburn and unanimously carried, the Commission adopted Resolution No. 1514 approving an application for personal property tax deduction for property located in the Sample Ewing Development Area. (General Sheet Metal, Inc.) e. Commission approval requested for Resolution No. 1515 approving the transfer of real property to the City of South Bend, Indiana. Ms. Kolata noted that this is for property at 309 -313 S. Scott Street. This property will be transferred to the Board of Public Works. Then the property will be transferred to South Bend Heritage Foundation. Upon a motion by Ms. Auburn, seconded by Ms. Schwartz and unanimously carried, the Commission adopted Resolution No. 1515 approving the transfer of real property to the City of South Bend, Indiana. -13- COMMISSION ADOPTED RESOLUTION NO. 1514 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE SAMPLE EWING DEVELOPMENT AREA. (GENERAL SHEET METAL, INC.) COMMISSION ADOPTED RESOLUTION NO. 1515 APPROVING THE TRANSFER OF REAL PROPERTY TO THE CITY OF SOUTH BEND, INDIANA South Bend Redevelopment Commission Regular Meeting - June 20, 1997 6. NEW BUSINESS (CONT.) f. Commission approval requested for proposal from Peirce & Associates for Survey and Elevation work for the proposed bike path at Blackthorn Corporate Park. Ms. Kolata noted that the Commission previously hired Williams Aerial & Mapping, Inc. to do some topographical work and it has been completed. Based on the topographical information prepared by Williams Aerial Mapping, Inc., Peirce & Associates will provide the detailed survey to allow for putting in the bike path and pedestrian path. The staff recommends approving the proposal from Peirce & Associates in the amount not to exceed $3,200.00 Upon a motion by Ms. Schwartz, seconded by Ms. Auburn and unanimously carried, the Commission approved the proposal from Peirce & Associates for Survey and Elevation work for the proposed bike path at Blackthorn Corporate Park. g. Commission approval requested for proposal from Heptagon, Incorporated for map illustration for Blackthorn Corporate Park brochure. Ms. Kolata noted that at a previous meeting, the Commission hired Heptagon, Inc. to design a brochure for the Blackthorn Corporate Park. She noted that Redevelopment staff was going to use an existing drawing, but felt that it had too much detail. They asked Heptagon to do a AW r -14- COMMISSION APPROVED THE PROPOSAL FROM PEIRCE & ASSOCIATES FOR SURVEY AND ELEVATION WORK FOR THE PROPOSED BIKE PATH AT BLACKTHORN CORPORATE PARK South Bend Redevelopment Commission Regular Meeting - June 20, 1997 6. NEW BUSINESS (CONT.) g. continued.... more simplified version of the map. The fee for designing the new map would cost between $720 and $1,080. Upon a motion by Ms. Auburn, seconded by Ms. Schwartz and unanimously carried, the Commission approved the proposal from Heptagon, Incorporated for map illustration for Blackthorn Corporate Park brochure. h. Commission approval requested for proposal for development of a homepage and web site for Blackthorn Corporate Park. Ms. Kolata stated that James Riggs sent out a request for proposal to five firms and received four responses. She stated that the four responses that were received ranged in prices from JG Sullivan Interactive in the amount of $6,870 up to Data Vision in the amount of $22,495. She stated that one firm just quoted their hourly rate at $50 an hour. The staff recommended accepting the proposal from JG Sullivan Interactive because they are a very good firm, they had the lowest bid and they are located in the Blackthorn Corporate Park. Upon a motion by Ms. Auburn, seconded by Ms. Schwartz and carried, the Commission approved the proposal from JG Sullivan Interactive for development of -15- COMMISSION APPROVED THE PROPOSAL FROM HEPTAGON, INCORPORATED FOR MAP ILLUSTRATION FOR BLACKTHORN CORPORATE PARK BROCHURE COMMISSION APPROVED THE PROPOSAL JG SULLIVAN INTERACTIVE FOR DEVELOPMENT OF A HOMEPAGE AND WEB SITE FOR BLACKTHORN CORPORATE PARK South Bend Redevelopment Commission Regular Meeting - June 20, 1997 6. NEW BUSINESS (CONT.) a homepage and web site for the Blackthorn Corporate Park. i. Staff report on acquisition of property in the Sample Ewing Development Area. There was no Staff Report. THERE WAS NO STAFF REPORT 7. PROGRESS REPORTS Ms. Kolata stated that the Bankruptcy Court dedication was Friday, June 13, 1997. Philip Faccenda and Eugenia Schwartz attended the groundbreaking ceremony. She also stated that the groundbreaking for the Trammell Crow and Memorial Health System project will be next week. Mr. Hunt stated that the Blackthorn Golf Course is in beautiful condition and a leprechaun logo has been cut into the grass. 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is rescheduled for July 3, 1996 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before ADJOURNMENT the Redevelopment Commission, Ms. Schwartz made a motion that the meeting be adjourned. Ms. Auburn econded the motion and the mee ' s adjourned at 10:45 a.m. J / (/� Robert W. Hunt, President Ann E. Kolata, Director -16-