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HomeMy WebLinkAboutRM 07-18-97SOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULED REGULAR MEETING July 18, 1997 10:00 P.M. Presiding: Robert W. Hunt President 1. ROLL CALL 1308 County -City Building 227 West Jefferson Boulevard South Bend, Indiana 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 E. Bruneel Redevelopment Staff: Mrs. Ann E. Kolata, Director Ms. Vangelean Binion, Recording Secretary Mr. James Riggs, Economic Development Specialist Mr. Owen Rock, Economic Development Specialist Ms. Joanna Smith, Economic Development Specialist Business Assistance: Mr. Michael Beitzinger, Economic Development Specialist Others: Mr. Bruce Bancroft Mr. Jerry Christensen, Bowne Printing Company Mr. Jerry Lerman, Steel Warehouse Company, Inc. 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 Rescheduled Regular Meeting of July 3, 1997. Mr. Faccenda made a motion to approve the Minutes of the Rescheduled Regular Meeting of July 3, 1997. H:\HOME\CPHIPPS\WPDATA\COMMSM071897.MTN -I- COMMISSION APPROVED THE MINUTES OF THE RESCHEDULED REGULAR MEETING OF JULY 3, 1997 1� x South Bend Redevelopment Commission Regular Meeting - July 18, 1997 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted July 18, 1997 for approval. COMMUNITY DEVELOPMENT (212 3600 Communications $111.50 International City /County Management Assoc. $17.45 A.E.P. $31.81 General Fund— telephone $303.04 Federal Express $44.17 Business Systems $54.95 CA Studios $1,375.00 Insty- Prints $11.25 SAMPLE -EWING FUND 414 Rodney V. George and Montrell L. Groce $5,250.00 Thomas General Construction $1,000.00 Rachel Osborn and Joseph Siade $4,750.00 Rodney George and Montrell Groce $750.00 Mario Alfred and Vanessa Ceasar and Title Search Co. $5,250.00 Mario Alfred and Vanessa Ceasar $650.00 Arenia Warner Jones and Mohr and Mohr Housing LLC $5,250.00 Areinia Warner Jones $650.00 Rachel Osborn $500.00 Juan Jose Hernandez and Norma Irene Hernandez $11,281.12 Juan Jose Hernandez and Norma Irene Hernandez and Donald Wertheimer $750.00 St. Joseph County Treasurer #1 $218.88 Rachel Osborn $850.00 St. Joseph County Treasurer #2 $674.16 Jerome C. Smith and Botkin and Leone $1,204.18 Jerome C. Smith $8,735.33 Jerome C. Smith and Indiana Dept. Of Revenue $53.33 Richard N. Morgan and Gay Smith and $5,333.00 St. Joseph County Treasurer #4 $2.11 James Goodlink and Ellen Goodlink #2 $1,747.89 James Goodlink and Ellen Goodlink #1 $1,718.74 St. Joseph County H:\HOME\CPHIPPS\WPDATA\COMMSN\071897.MIN -2- South Bend Redevelopment Commission Regular Meeting - July 18, 1997 3. APPROVAL OF CLAIMS (CONT.) SAMPLE -EWING FUND 414 Treasurer# 3 James B. Goodlink and Ellen M. Goodlink and Key Bank James B. Goodlink and Ellen M. Goodlink #3 St. Joseph County Treasurer #5 Rosa Perkins and Bekins Van Lines SBCDA GENERAL ACCOUNT (420) W.W. Grainger Real Estate Management Superior Waste Systems Big C Lumber Rose Exterminator Howard Park Hardware NIPSCO FUND 328 PALAIS ROYALE Norwest Bank FUND 314 SBCDA Norwest Bank FUND 316 AIRPORT SERIES 91 Norwest Bank FUND 324 Sycamore Knoll, Inc. Williams Aerial and Mapping Peirce & Associates Peirce and Associates J.F. New and Associates H:\HOME\CPHIPPS\WPDATA\COMMSN\071897.MIN -3- $31.26 $11,247.18 $11,678.34 $74.48 $2,062.50 $68.88 $2,050.19 $95.80 $12.37 $40.00 $18.25 $9.54 $98,500.00 $232,000.00 $117,000.00 $9,445.00 $90.00 $500.00 $487.50 $400.00 T' South Bend Redevelopment Commission Regular Meeting - July 18, 1997 3. APPROVAL OF CLAIMS FUND 619 Meadowbrook Golf Management Upon a motion by Mr. Donoho, seconded by Ms. Auburn and carried, the Commission approved the Claims submitted July 18, 1997 and ordered the checks to be released. Ms. Schwartz abstained. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS a. Commission approval requested for Addendum to Contract for Sale of Land for Private Development between the South Bend Redevelopment Commission and Midwest Land Company. Ms. Kolata stated that this Addendum is for the construction of Bowne Printing Company. This Addendum will change the start date of construction to August 1, 1997, and the completion to July 31, 1998. Bruce Bancroft introduced Jerry Christensen, Vice - President and General Manager of Bowne Printing Company. Bruce Bancroft stated that Mr. Christensen will be in charge of the H:\HOW\CPHIPPS\WPDATA\COMMSM071897.MIN -4- $6,450.00 COMMISSION APPROVED THE CLAIMS SUBMITTED JULY 18, 1997 AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) a. continued.... Bowne Printing Company, and the construction of the the Bowne Printing facility in South Bend. He noted that Jerry Christensen has been in South Bend for almost a year overseeing the start of this project. Mr. Christensen stated that he has been with the company for approximately one year. He stated that Bowne Printing Company was started in 1775, near New York. Today, Bowne Printing Company has annual sales of $400 million. They have 4,000 employees in twelve countries. Mr. Christensen stated that Bowne Printing Company is the world's largest financial printer. The South Bend facility will be dedicated to printing IPO documents; l OK documents; and Mutual Fund records. Mr. Christensen stated that most of the printing work will come out of Chicago or the East Coast. He stated that the groundbreaking ceremony will take place on July 24, 1997. Construction will start August 1, 1997. The completion date is anticipated to be May 1998. He noted that the actual printing work is anticipated to start in June 1998. He noted that the building is 120,000 s.f. Mr. Christensen presented drawings of the proposed project to the Commission. H:\ HOME\CPHIPPS \WPDATA \COMMSM071897.MIN -5- ♦. South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) a. continued.... He also stated that the building will have precast walls with a flat roof, and will be very nicely landscaped. The equipment, which is the bulk of the investment, will be installed over a period of five (5) years. In the first year, Bowne Printing expects to spend approximately $4 - $5 million on basic equipment. In the second year, approximately $1 million. In the third year, approximately $1 million. In the fourth year, approximately $4 million. And, in the fifth year, they expect to spend another $1 million on equipment. Mr. Christensen stated that the printing business is a very good and profitable business. He stated that they expect to start hiring individuals in the first quarter of 1998. They will bring in individuals from all over the country. They plan to do a lot of local hiring and training. Mr. Christensen stated that the reason Bowne Printing Company chose South Bend to construct one of their facilities is because South Bend is close to their market. He also stated that South Bend has great transportation including good truck transportation to the East and West Coasts. Mr. Faccenda asked Mr. Christensen when he stated that the work comes from Chicago and New York, did he mean that the work is generated in those two H:\ HOME\CPHrPPS\WPDATA\CONMSN\071897.MfN -6- South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) a. continued.... locations and printed in South Bend. Mr. Christensen stated that is correct. Ms. Kolata noted that this is an expansion of Bowne Printing Company rather than a relocation. Mr. Hunt asked where the equipment is manufactured. Mr. Christensen stated that the printing equipment is manufactured in Germany. He also stated that there are three basic departments. The prep department which uses printing equipment, which comes from Germany, that prepares the words for printing. The press department which has the large press machines that come from both Germany and the United States. He noted that probably most of the models that Bowne Printing Company purchases come from the United States. The stitching department has the stitcher machines which come from Switzerland. He also noted that the material handling equipment probably will come from Yale or a local company. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and carried, the Commission approved the Addendum to Contract for Sale of Land for Private Development between the South Bend Redevelopment Commission and Midwest Land Company. Mr. Faccenda abstained. H:V TOME\ CPHIPPS \WPDATA \COMMSN\071897.MIN -7- COMMISSION APPROVED THE ADDENDUM TO CONTRACT FOR SALE OF LAND FOR PRIVATE DEVELOPMENT BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND MIDWEST LAND COMPANY South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS b. Commission approval requested for Quit Claim Deed for property located in the Airport Economic Development Area. Ms. Kolata noted that this Quit Claim Deed is for a small, 30 ft. wide property along the north edge of the property. She also noted that the main Deed for this property has already been recorded and is subject to the terms of the Contract. She also stated that this is a supplemental piece of land. She noted that the Deed for this 30 foot parcel was never recorded because at that time the start of construction wasn't firm. co Upon a motion by Ms. Auburn, seconded by Mr. Donoho and carried, the Commission approved the Quit Claim Deed for property located in the Airport Economic Development Area. Mr. Faccenda abstained. c. Commission approval requested for Resolution No. 1531 approving an application for real property tax deduction for property located in the Sample -Ewing Development Area. (Steel Warehouse Co., Inc. A & F Realty Co. and Steel Warehouse for Indiana, Inc.) Mike Beitzinger gave the staff report. Steel Warehouse Co., Inc. is a steel service center specializing in flat rolled, low carbon steel, with operations H:\HONlE\CPHIPPS\WPDATA\COMMSN\071897.MIN -8- COMMISSION APPROVED THE QUIT CLAIM DEED FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) c. continued.... involving slitting, leveling, pickling, temper rolling, and shearing. In connection with the production operations, the company takes substantial positions in steel and steel products for the future marketing and sale of the same to its customers. Their lastest project calls for the construction of between 60,000 and 100,000 square feet of building additions to add additional manufacturing, warehousing, and related space to the company's current facilities. The total construction cost is estimated to be between $1,400,000 and $2,300,000. Along with the additional floor space, new manufacturing equipment to process steel coils and sheets will be added at an estimated cost of between $1,00,000 and $2,000,000. Per the petition, it is estimated that this project will create five (5) new permanent full -time jobs in the first year representing an annual payroll of $120,000 and will maintain three hundred and ninety -three (393) existing permanent full -time and part-time jobs with an annual payroll of $14,305,600. A review of the tax abatements previously granted finds that Steel Warehouse Co., Inc. and A &F Realty and Steel Warehouse of Indiana, Inc. have been granted several previous real and personal property tax abatements. Steel Warehouse Co., Inc. and A &F Realty and Steel Warehouse of H:\ HOME\ CPHIPPS \WPDATA \COMMSN\071897.MIN -9- South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) c. continued.... Indiana, Inc. are in compliance with the reporting requirements for the previous abatements. The building commissioner has reviewed the petitions and finds the property to be properly zoned for the proposed uses. A review of the tax abatement designation areas finds that the property is not located in an area presently designated as a Tax Abatement Impact Area, however, the review finds that the property is located in a Redevelopment Blighted Area and the Urban Enterprise Zone. A review of the Redevelopment designation areas finds that the property is located in the Sample -Ewing Development Area, which is a Tax Incremental Allocation Area, therefore, the petitions first require the approval of the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that Steel Warehouse Co., Inc. and A &F Realty and Steel Warehouse of Indiana, Inc. meet the qualifications for a ten (10) year real property tax abatement, and meet the qualifications for a five (5) year personal property tax abatement. Using the estimated project cost of $1.4 million, real property taxes generated over ten years are estimated to total approximately $670,835. Taxes abated over ten years total approximately H:\ HOME\ CPHIPPS \WPDATA \COMMSN\071897.MIN -10- South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) c. continued.... $332,063. Taxes still paid with the abatement total approximately $338,772. Mike Beitzinger stated that if the project cost reaches $2,300,000, real property taxes generated over ten years are estimated to total approximately $1,102,087. Taxes abated over ten years total approximately $545,533. Taxes still paid with abatement total approximately $556,772. Jerry Lerman stated that the equipment is needed by Steel Warehouse to maintain its level of competitiveness in an increasingly competitive industry. He stated that many years ago, when Steel Warehouse Company, Inc. started applying for tax abatements, they were facing a market structure that primarily consisted of privately held companies like Steel Warehouse. He stated that many years later, Steel Warehouse is faced with publicly held companies. He stated that many of the publicly held companies have access to capital that Steel Warehouse doesn't have access to and that many of the companies are multi - geographic companies. He noted that Steel Warehouse is primarily located in South Bend. Jerry Lerman stated that Steel Warehouse is far from the largest company in this H:\HOME\CPHIPPS\WPDATA\CON4MSM071897.MIN _11- South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) c. continued.... particular industry; but they are the largest company in their industry in a single location. He felt that Steel Warehouse's success and growth is due to the fact that they maintained a competitive edge by continuing to be on the cutting edge of modernization with their equipment. Their current project relates to additional space that Steel Warehouse hopes will be neccessary by virtue of improving productivity of their equipment. That determines the rate of the personal property investment which Steel Warehouse intends to make. He stated that their largest single investment which is the $600,000 component of their #4 leveling machine, which is a large plate line having the capability of leveling and shearing light plates. Jerry Lerman stated that when the company started this line in 1993 - `94, only Steel Warehouse and one other company had this capability. Presently there are approximately 7 or 8 of these machines. He also noted that these machines are being installed at a very rapid rate. To maintain a level of competitiveness in this business, which is growing rapidly, Steel Warehouse really believes that they must improve their productivity. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\071897.MIN -12- South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) c. continued.... Jerry Lerman stated that the real property tax abatement for the proposed addition is to accommodate the increase of productivity that Steel Warehouse needs. Ms. Auburn asked what kind of products are Steel Warehouse's steel used to manufacture. Jerry Lerman stated that the major industries that their steel is used in are the automotive industry, truck industry, trailer industry, and the appliance industry. Ms. Schwartz asked where does Steel Warehouse's steel come from. Jerry Lerman stated that their steel comes from a varieties of dometic and foreign sources. He stated that the heavy gauges primarily come from an area around Chicago, Illinois and Gary, Indiana. Ms. Scwartz asked if the steel comes by railroad or truck. Jerry Lerman stated that the equipment comes by both railroad and truck. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1531 approving an application for real property tax deduction for property located in the Sample -Ewing Development Area. (Steel Warehouse Co., Inc. A &F Realty Co. and Steel Warehouse of Indiana, Inc.) H:\HOME\ CPHIPPS \WPDATA \COMMSN\071897.MIN -13- COMMISSION ADOPTED RESOLUTION NO. 1531 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE SAMPLE -EWING DEVELOPMENT AREA. (STEEL WAREHOUSE CO., INC. A &F REALTY CO. AND STEEL WAREHOUSE OF INDIANA, INC.) South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) d. Commission approval requested for Resolution No. 1532 approving an application for personal property tax deduction for property located in the Sample -Ewing Development Area. (Steel Warehouse Co., Inc.) With a project cost of $1 million for the equipment, personal property taxes generated over five (5) years total approximately $92,958. Taxes abated total approximately $76,475. Taxes still paid with the abatement total approximately $16,483. Mike Beitzinger stated that if the project cost reaches $2,000,000 for the equipment, personal property taxes generated over five (5) years total approximately $185,9147. Taxes abated over five (5) years total approximately $32,967. Taxes still paid with the abatement total approximately $152,950. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1532 approving an application for personal property tax deduction for property located in the Sample -Ewing Development Area. (Steel Warehouse Co., Inc.) e. Public Hearing on Resolution No. 1516, a resolution of the South Bend Redevelopment Commission amending the Airport Economic Development Area Development Plan. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\071897.MIN -14- COMMISSION ADOPTED RESOLUTION NO. 1532 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE SAMPLE -EWING DEVELOPMENT AREA. (STEEL WAREHOUSE CO., INC.) South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) e. continued.... Mrs. Kolata asked that the following items be entered into the record: Affidavits from the South Bend Tribune and Tri- County News, that the Notice of Public Hearing was published. She also noted that the Notice of Public Hearing was sent to the affected property owners, and the Registered Neighborhood Association. She also noted that as of 10:00 a.m. no written remonstrances were received. Mr. Hunt asked if there were any objections to the items being entered into the record. There were no objections and the items were entered. Ms. Kolata noted that Resolution No. 1516 amends the plan for the Airport Economic Development Area by adding one property to the acquistion list. The property is approximately 77 acres and is located along the bypass, north of Brick Road. Mr. Hunt opened the Public Hearing for anyone who wished to speak. There was no one who wished to speak concerning Resolution No. 1516. Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. f. Commission action on Resolution No. 1516. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\071897.MIN -15- South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) f. continued.... Upon a motion by Ms. Auburn, seconded by Ms. Schwartz and unanimously carried, the Commission adopted Resolution No. 1516, a resolution of the South Bend Redevelopment Commission amending the Airport Economic Development Area Development Plan. g. Public Hearing on Resolution No. 1521, a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. (Airport Economic Development Area) ew Mrs. Kolata asked that the following items be entered into the record: Affidavits from the South Bend Tribune and Tri- County News, that the Notice of Public Hearing was published. Mr. Hunt asked if there were any objections to the items being entered into the record. There were no objections and the items were entered. Ms. Kolata stated that this resolution appropriates $1,461,381 in the Airport Economic Development Area. She stated that this is all Tax Increment and the money is being appropriated for both local public improvements, and to make lease payments for local public improvements serving the Airport Economic Development Area. H:\ HOME \CPHIPPS \WPDATA \COMMSN\071897.MIN -16- COMMISSION ADOPTED RESOLUTION NO. 1516, A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION AMENDING THE AIRPORT ECONOMIC DEVELOPMENT AREA DEVELOPMENT PLAN South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) g. continued.... Mr. Hunt opened the Public Hearing for anyone who wished to speak. There was no one who wished to speak concerning Resolution No. 1521. Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. h. Commission action Resolution No. 1521. Ms. Schwartz asked Ms. Kolata why wasn't this appropriation included in the budget. Ms. Kolata stated that an annual budget wasn't adopted at the beginning of the year. Ms. Schwartz asked if the amount of Tax Increment isn't known until it is received. Ms. Kolata stated that is correct. Ms. Kolata noted that Redevelopment had no original budget. She also noted that generally appropriations are done twice a year. She also stated that this is Tax Increment and money earned from land bought with Tax Increment funds. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1521, a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. (Airport Economic Development Area) H:\ HOME\ CPHIPPS \WPDATA \COMMSN\071897.MIN -17- COMMISSION ADOPTED RESOLUTION NO. 1521, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION. (AIRPORT ECONOMIC DEVELOPMENT AREA) South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) i. Public Hearing on Resolution No. 1522, a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. (Sample - Ewing Development Area) Mrs. Kolata asked that the following items be entered into the record: Affidavits from the South Bend Tribune and Tri- County News, that the Notice of Public Hearing was published. Mr. Hunt asked if there were any objections to the items being entered into the record. There were no objections and the items were entered. A; Ms. Kolata stated that this resolution appropriates $890,043 of Tax Increment in the Sample -Ewing Development Area. It will be used for local public improvements. Mr. Hunt opened the Public Hearing for anyone who wished to speak. There was no one who wished to speak concerning Resolution No. 1522. Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. j. Commission action on Resolution No. 1522. Upon a motion by Ms. Auburn, seconded COMMISSION ADOPTED RESOLUTION NO. 1522, A by Mr. Donoho and unanimously carried, SUPPLEMENTAL APPROPRIATION RESOLUTION OF the Commission adopted Resolution THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION (SAMPLE -EWING DEVELOPMENT No. 1522, a supplemental appropriation AREA) resolution of the City of South Bend H:\HOME\ CPHIPPS \WPDATA \COMMSN\071897.MIN -18- South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) j. continued.... Redevelopment Commission. (Sample - Ewing Development Area) k. Public Hearing on Resolution No. 1523, a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. (South Bend Central Development Area) Mrs. Kolata asked that the following items be entered into the record: Affidavits from the South Bend Tribune and Tri- County News, that the Notice of Public Hearing was published. Mr. Hunt asked if there were any objections to the items being entered into the record. There were no objections and the items were entered. Ms. Kolata stated that this resolution appropriates $2,165,128 in the South Bend Central Development Area. She also stated that this appropriation is for both direct expenditures for local public improvements and for bond and lease payments. Ms. Kolata stated that not all the funds are actually being spent but will be allocated to funds that need to be at a certain level by August 1, 1997. Mr. Hunt opened the Public Hearing for anyone who wished to speak. There was no one who wished to speak concerning H:\ HOME\ CPHIPPS \WPDATA \COMMSN\071897.MIN -19- South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) L continued.... Resolution No. 1523. Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. 1. Commission action on Resolution No. 1523. Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda and unanimously carried, the Commission adopted Resolution No. 1523, a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. (South Bend Central Development Area) m. Public Hearing on Resolution No. 1524, a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. (West Washington- Chapin Development Area) Mrs. Kolata asked that the following items be entered into the record: Affidavits from the South Bend Tribune and Tri- County News that the Notice of Public Hearing was published. Mr. Hunt asked if there were any objections to the items being entered into the record. There were no objections and the items were entered. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\071897.MIN -20- COMMISSION ADOPTED RESOLUTION NO. 1523, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION. (SOUTH BEND CENTRAL DEVELOPMENT AREA) South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) m. continued.... Ms. Kolata stated that this resolution appropriates $18,281.14 for direct expenditures for local public improvements. Mr. Hunt opened the Public Hearing for anyone who wished to speak. There was no one who wished to speak concerning Resolution No. 1521. Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. n. Commission action on Resolution No. 1524. Upon a motion by Ms. Schwartz, COMMISSION ADOPTED RESOLUTION NO. 1524, A seconded by Mr. Faccenda and SUPPLEMENTAL APPROPRIATION RESOLUTION OF unanimously carried, the Commission THE CITY OF SOUTH BEND REDEVELOPMENT adopted Resolution No. 1524, a COMMISSION. (WEST WASHINGTON- CHAPIN DEVELOPMENT AREA) supplemental appropriation resolution of the City of South Bend Redevelopment Commission. (West Washington- Chapin Development Area) o. Commission approval requested for Resolution No. 1527, a resolution of the South Bend Redevelopment Commission determining tax increment needed to satisfy obligations of the Commission regarding the South Bend Central Allocation Area. (South Bend Central Allocation Area No. 1A) Ms. Kolata noted that this resolution states the Commission's intent to H:\HOME\CPHEPPS\WPDATA\COMMSN\071897.MIN -21- South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) o. continued.... determine tax increment needed in order to meet an obligation of the Commission in the South Bend Central Allocation Area. She also stated that this is a notice that Redevelopment needs to send to the County Auditor on an annual basis stating that the Commission has no excess increment for the next taxing year. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1527, a resolution of the South Bend Redevelopment Commission determining tax increment needed to satisfy obligations of the Commission regarding the South Bend Central Allocation Area (South Bend Central Allocation Area No. IA) p. Commission approval requested for Resolution No. 1528, a resolution of the South Bend Redevelopment Commission determining tax increment needed to satisfy obligations of the Commission regarding the Airport Economic Development Allocation Area No. 1. Ms. Kolata noted that this resolution states the Commission's intent to determine tax increment needed in order to meet obligations of the Commission in the Airport Economic Development Allocation Area No. 1. She also stated H:\ HOME\ CPHIPPS \WPDATA \COMMSN\071897.MIN -22- COMMISSION ADOPTED RESOLUTION NO. 1527, A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION DETERMINING TAX INCREMENT NEEDED TO SATISFY OBLIGATIONS OF THE COMMISSION REGARDING THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND CENTRAL ALLOCATION AREA NO. IA) South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) p. continued.... that this is a notice that Redevelopment needs to send to the County Auditor on an annual basis stating that the Commission has no excess increment for the next taxing year. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1528, a resolution of the South Bend Redevelopment Commission determining tax increment needed to satisfy obligations of the Commission regarding the Airport Economic Development Allocation Area No. 1. q. Commission approval requested for Resolution No. 1529, a resolution of the South Bend Redevelopment Commission determining tax increment needed to satisfy obligations of the Commission regarding the West Washington- Chapin Allocation Area. (West Washington - Chapin Allocation Area No. 1A) Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1529, a resolution of the South Bend Redevelopment Commission determining tax increment needed to satisfy obligations of the Commission regarding the West Washington- Chapin Allocation Area. (West Washington- Chapin H:\IiOME\CPHIPPS\WPDATA\COMMSM071897.MfN -23- COMMISSION ADOPTED RESOLUTION NO. 1528, A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION DETERMINING TAX INCREMENT NEEDED TO SATISFY OBLIGATIONS OF THE COMMISSION REGARDING THE AIRPORT ECONOMIC DEVELOPMENT ALLOCATION AREA NO. 1 COMMISSION ADOPTED RESOLUTION NO. 1529 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION DETERMINING TAX INCREMENT NEEDED TO SATISFY OBLIGATIONS OF THE COMMISSION REGARDING THE WEST WASHINGTON - CHAPIN ALLOCATION AREA. (WEST WASHINGTON - CHAPIN ALLOCATION AREA NO. 1 A) South Bend Redevelopment Commission Regular Meeting - July 18, 1997 Allocation Area No. 1 A) r. Commission approval requested for Resolution No. 1530, a resolution of the South Bend Redevelopment Commission determining tax increment needed to satisfy obligations of the Commission regarding the Sample -Ewing Allocation Area. (South Bend Allocation Area No. 8) Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1530, a resolution of the South Bend Redevelopment Commission determining tax increment needed to satisfy obligations of the Commission regarding the Sample -Ewing Allocation Area. (South Bend Allocation Area No. 8) s. Commission approval requested for proposal from J.F. New & Associates, Inc. for purchase of plant materials and related professional services for Golf Course wetland areas. Ms. Kolata stated that this proposal is in the amount of $4,700. She also noted that J.F. New & Associates originally submitted the proposal to Blackthorn Golf Course. Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Commission approved the proposal from J.F. New & Associates, Inc. for purchase of plant materials and related professional services for Golf Course wetland areas. H:\I TOME\ CPHIPPS \WPDATA \COMMSN\071897.MIN -24- COMMISSION ADOPTED RESOLUTION NO. 1530, A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION DETERMINING TAX INCREMENT NEEDED TO SATISFY OBLIGATIONS OF THE COMMISSION REGARDING THE SAMPLE -EWING ALLOCATION AREA. (SOUTH BEND ALLOCATION AREA NO. 8) COMMISSION APPROVED THE PROPOSAL FROM J.F. NEW & ASSOCIATES, INC. FOR PURCHASE OF PLANT MATERIALS AND RELATED PROFESSIONAL SERVICES FOR GOLF COURSE WETLAND AREAS f i South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) t. Commission approval requested for proposal from Landscapes Unlimited, Inc. for professional services in the Airport Economic Development Area. Ms. Kolata stated that this proposal is in the amount of $9,500 for design work on a landscape area near where the bypass interchange is being built. This area is between the interchange and the Golf Course. She also noted that there will be extra money in the grant from the State to do landscaping work, but the State Grant doesn't provide funds for the design services. She noted that there will be substantial plantings along the maintenance building and south of the maintenance building on the west side of the golf course to separate it from the exit ramp. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved the proposal from Landscapes Unlimited, Inc. for professional services in the Aiport Economic Development Area. u. Commission approval requested for Certificate of Completion for Sycamore Knoll, Inc. for property located in the Airport Economic Development Area. Ms. Kolata stated that this Certificate is for the Blue Heron Catering facility. They have completed their project. H:\HOME\CPHIPPS\WPDATA\COMMSN\071897.MIN -25- COMMISSION APPROVED THE PROPOSAL FROM LANDSCAPES UNLIMITED, INC. FOR PROFESSIONAL SERVICES IN THE AIPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) u. continued.... James Riggs noted that this Certificate of Completion is just for Tract I. This is only for a partial return of their Performance Guarantee. Upon a motion by Ms. Schwartz, seconded by Ms. Auburn and unanimously carried, the Commission approved the Certificate of Completion for Sycamore Knoll, Inc. for property located in the Airport Economic Development Area. v. Commission approval requested for Certificate of Waiver in connection AWN with the Rental Rehab Loan Program for property located at 826 Diamond. (Alfonso Cardenas) Ms. Kolata noted that this Certificate of Waiver forgives $750.00 as of February 15, 1997. Upon a motion by Mr. Faccenda, seconded by Ms. Auburn and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 826 Diamond. (Alfonso Cardenas) w. Commission approval requested for Leasehold Mortgage and Security Agreement for The St. Joseph County Housing Consortium for property located in the South Bend Central H:\JiOME\CPHIPPS\WPDATA\COMMSN\071897.MfN -26- COMMISSION APPROVED THE CERTIFICATE OF COMPLETION FOR SYCAMORE KNOLL, INC. FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 826 DIAMOND. (ALFONSO CARDENAS) r South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) w. continued.... Development Area. Ms. Kolata stated that the property located at 628 Rush Street was purchased by Redevelopment and leased to the Housing Development Corporation. They in turn used the property as a local contribution to match HOME money that was invested in the rehab of the property. She also noted that the Legal Department recommended approving the Leasehold Mortgage and Security Agreement. Upon a motion by Ms. Schwartz, COMMISSION APPROVED THE LEASEHOLD seconded by Mr. Faccenda and MORTGAGE AND SECURITY AGREEMENT FOR THE ASK unanimously carried, the Commission ST. JOSEPH COUNTY HOUSING CONSORTIUM FOR approved the Leasehold Mortgage and PROPERTY LOCATED IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA Security Agreement for the St. Joseph County Housing Consortium for property located in the South Bend Central Development Area. x. Commission approval requested for Addendum to Contract for Sale of Land for Private Development between the South Bend Redevelopment Commission and Management Consortium, Inc. Ms. Kolata stated that this Agreement will extend until February 28, 1998, the obligation of the Management Consortium to obtain financing for the proposed hotel project. She also noted that the deadline is March 31, 1998, by which Management Consortium must H:\ HOME \CPHI PPS \WPDATA \COMMSN\071897.MIN -27- South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) x. continued.... close on the property. The Agreement references the fact that the project has already gone through architectural site plan review in 1996, and the final construction plans and specs should be submitted on or before April 30, 1998 or sixty (60) days after the submission of the financial commitment. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Addendum to Contract for Sale of Land for Private Development between the South Bend Redevelopment Commission and Management Consortium, Inc. y. Commission approval requested for proposal for engineering services in the Airport Economic Development Area. Ms. Kolata asked permission to table item 6.y. There were no objections and item 6.y. was tabled. z. Commission approval requested for Resolution No. 1533 relating to the Acquisition of Real Property in the Airport Economic Development Area. Ms. Kolata noted that this resolution sets the purchase price at $13,800 per acre of land, which does not exceed the average of the two appraisals of the property which were obtained by the Commission. She also stated that the resolution sets H:\HOME\CPHEPPS\WPDATA\COMMSM071897.MIN -28- COMMISSION APPROVED THE ADDENDUM TO CONTRACT FOR SALE OF LAND FOR PRIVATE DEVELOPMENT BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND MANAGEMENT CONSORTIUM, INC. TABLED ITEM 6.Y. 1 t r South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) z. continued.... terms of the purchase, in that, the Commission would make the first payment no later than August 31, 1997, in an amount not to exceed $200,000; and six subsequent payments being made thereafter on August 15 of each year for a total of five (5) years. She also noted that the property is subject to a Phase I Environmental Assessment. Upon a motion by Ms. Schwartz, seconded by Ms. Auburn and unanimously carried, the Commission adopted Resolution No. 1533 relating to the Acquistion of Real Property in the Airport Economic Development Area. aa. Commission approval requested for proposals for title work in the South Bend Central Development Area and Sample -Ewing Development Area. Ms. Kolata stated that a request for proposals was sent to both York Title & Escrow and Meridian Title Corporation. She noted that York Title & Escrow's proposal came in at $130.00 per tax key number. Meridian Title Company's proposal came in at $100 per site and there are five (5) sites. Meridian anticipates to complete the title work within five (5) working days. The staff recommends accepting the proposal from Meridian Title Corporation. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\071897.MIN -29- COMMISSION ADOPTED RESOLUTION NO. 1533 RELATING TO THE ACQUISTION OF REAL PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - July 18, 1997 6. NEW BUSINESS (CONT.) aa. continued.... Upon a motion by Ms. Schwartz, seconded by Ms. Auburn and unanimously carried, the Commission approved the proposal from Meridian Title Corporation for title work in the South Bend Central Development Area and Sample -Ewing Development Area. bb. Commission approval requested for proposal for survey work in the South Bend Central Development Area and Sample -Ewing Development Area. Ms. Kolata stated that proposals were sent to Lang, Feeney and Associates, Abonmarche, and Peirce and Associates. She noted that Lang, Feeney and Associates' proposal came in with a range of prices between $4,200 and $5,300 with a range of delivery dates all to be completed by August 7. Peirce and Associates's proposal came in at $5,800 in five weeks. Abonmarche's proposal came in at $7,500 in six weeks. The staff recommends accepting the proposal from Lang, Feeney and Associates because they were both low in price and in time. Upon a motion by Ms. Schwartz, seconded by Ms. Auburn and unanimously carried, the Commission accepted the proposal from Lang, Feeney and Associates subject to a Performance Guarantee being submitted. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\071897.MIN -30- COMMISSION APPROVED THE PROPOSAL FROM MERIDIAN TITLE CORPORATION FOR TITLE WORK IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND SAMPLE -EWING DEVELOPMENT AREA COMMISSION ACCEPTED THE PROPOSAL FROM LANG, FEENEY AND ASSOCIATES SUBJECT TO A PERFORMANCE GUARANTEE J• South Bend Redevelopment Commission Regular Meeting - July 18, 1997 7. PROGRESS REPORTS Ms. Kolata stated that on July 8, 1997, the Bonds for the Parking Garage project was sold, and the tax exempt portion went at approximately 5.3 %, and the taxable portion at 7.2 %. The Bonds closed on Monday, July 14, 1997 and money was received Monday, July 14, 1997. 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is scheduled for August 1, 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. Mr. Faccenda seconded the motion and t mg wazd*ou a at 11:00 a.m. Robert W. Hunt, President ADJOURNMENT 4:� X Ann E. Kolata, Director H:\H OME\ CPHIPPS \WPDATA \COMMSN\071897.MIN -31-