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HomeMy WebLinkAboutRM 08-15-97_f SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 15, 1997 10:00 a.m. Presiding: Robert W. Hunt 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. Eugenia S. Schwartz Mr. Philip J. Faccenda Member Absent: Ms. Paula N. Auburn, Secretary Legal Counsel: Ms. Ann Carol Simon Redevelopment Staff: Mrs. Ann E. Kolata, Director Ms. Vangelean Binion, Recording Secretary Mr. James Riggs, Economic Development Specialist Mr. Andy Laurent, Intern Mr. Owen Rock, Economic Development Specialist Ms. Amy Tweeten, Economic Development Specialist Ms. Joanna Smith, Economic Development Specialist Business Assistance: Mr. Michael Beitzinger, Economic Development Specialist Others: Ms. Dea Andrews, South Bend Heritage Foundation Mr. Steve Moerlein Mr. Gregory Kil Mr. Brent Schroeder Ms. Bessie Holt 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 August 1, 1997. H:\HOME\CPHIPPS\WPDATA\COMMSN\081597.MIN 4- South Bend Redevelopment Commission Regular Meeting - August 15, 1997 Upon a motion by Mr. Faccenda, seconded by Ms. Schwartz and unanimously carried, the Commission approved the Minutes of the Regular Meeting of August 1, 1997. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF AUGUST 1, 1997 Redevelopment Commission Claims submitted August 15, 1997, for approval. 212 CDBG COMMUNITY DEVELOPMENT Douglas L. Carpenter $900.00 Department of Public Works $45.00 Department of Public Works $12.60 Department of Public Works $52.20 Ameritech $26.28 American Electric Power $32.73 Indiana Association of Cities and Towns $50.00 360 Communications $95.90 Genes Camera Store $14.50 Cole Associates, Inc. $67.60 Business Systems $19.19 General Fund: Telephone $30.41 General Fund: Telephone $30.41 Insty- Printing and Graphics $12.00 414 SAMPLE -EWING DEVELOPMENT AREA Tyler E. Osler $17,414.36 St. Joseph County Tribune $85.64 Thomas General Construction $2,248.00 American Electric Power $299.96 James B. Goodlink and Ellen M. Goodlink and KeyBank National Associates $19,075.90 James B. Goodlink and Ellen M. Goodlink $980.00 Jerome C. Smith and York Title and Escrow, Inc. $22,465.00 Tyler E. Osler $1,250.00 Lessie M. Tidwell $5,114.16 St. Joseph County Treasurer $122.34 Diamond and Diamond $513.50 Lessie M. Tidwell and York Title and Escrow, Inc. $23,524.08 York Title and Escrow $50.00 H:\ HOME\ CPHIPPS \WPDATA \COMMSN\081597.MIN -2- South Bend Redevelopment Commission Regular Meeting - August 15, 1997 3. APPROVAL OF CLAIMS (CONT.) 414 SAMPLE -EWING DEVELOPMENT AREA York Title and Escrow $50.00 York Title and Escrow $50.00 York Title and Escrow $50.00 York Title and Escrow $50.00 York Title and Escrow $50.00 York Title and Escrow $130.00 York Title and Escrow $130.00 York Title and Escrow $130.00 York Title and Escrow $130.00 619 BLACKTHORN GOLF COURSE Meadowbrook Golf Management, Inc. $6,000.00 Meadowbrook Golf Management, Inc. $450.00 324 AIRPORT ECONOMIC DEVELOPMENT AREA York Title and Escrow $2,666.25 Appraisal Group $1,200.00 SiteScapes $171.26 420 SOUTH BEND CENTRAL DEVELOPMENT AREA Midland Engineering $195.00 South Bend Water Works $143.03 Superior Waste System $65.80 Howard Park Hardware $6.48 Femco, Inc. $45.11 Hill's True Value Hardware $32.39 Northern Indiana Public Servive Co. $9.60 City Awning of South Bend $80.00 American Electric Power $7.06 American Electric Power $439.01 Real Estate Management $499.27 Real Estate Management $483.97 Design Packaging, Inc. $45,000.00 Upon a motion by Mr. Donoho, seconded by Mr. Faccenda, the Commission approved the Claims submitted August 15, 1997 and H:\ HOME\ CPHIPPS \WPDATA \COMMSN\081597.MIN -3- South Bend Redevelopment Commission Regular Meeting - August 15, 1997 3. APPROVAL OF CLAIMS (CONT.) ordered the checks to be released. Ms. Schwartz abstained on the Real Estate Management Claims. 4. COMMUNICATIONS There were two Communications. Ms. Kolata stated that the first Communication received was from La Casa de Amistad requesting to change the date of Fiesta Michiana that was previously approved by the Commission to be held in September 1997. The new date for Fiesta Michiana is August 30, 1997, at 12:00 p.m. to 8:00 p.m. to be held at the Morris Civic Plaza. Ms. Kolata also noted that La Casa de Amistad has provided a new Certificate of Insurance. Ms. Kolata stated the second Communication received was from New Horizon Ministry requesting to use a lot on Washington Street. She noted that New Horizon Ministry previously received permission from the Commission to hold a tent revival outreach in June 1997. New Horizon Ministry wants to hold the tent revival outreach on Monday, August 25 through Saturday August 30, 1997 from 5:00 p.m. to 8:00 p.m. Ms. Kolata stated that New Horizon Ministry was asked to provide a Certificate of Insurance for the revival to be held on Monday, August 25 through Saturday, August 30, 1997 which has been provided. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the H:\ HOME\ CPHIPPS \WPDATA \COMMSN\081597.MIN -4- COMMISSION APPROVED THE CLAIMS SUBMITTED ON AUGUST 15, 1997 AND ORDERED THE CHECKS TO BE RELEASED South Bend Redevelopment Commission Regular Meeting - August 15, 1997 4. COMMUNICATIONS (CONT.) Commission approved the change of date for Fiesta Michiana from September 1997 to August 30, 1997. They also approved New Horizon Ministry's tent revival outreach for Monday, August 25, 1997 through Saturday, August 30, 1997. 5. OLD BUSINESS There was no Old Business. Ms. Kolata asked permission to add an item to the agenda. There were no objections and item 6.m. was added. 6. NEW BUSINESS a. Commission approval requested for proposal from The Abonmarche Group for topographic survey of property west of Niles Avenue to St. Joseph River. Ms. Kolata stated that this proposal is for a piece of property that currently holds part of the East Bank trail. The topographic survey for this parcel will show the elevations of the land. The land is very steep but also includes an old railroad bed that leads up to Niles Avenue. There are also easements that currently exist on the property. A portion of the property is owned by the City and has an easement to John Friedline. A portion of the property is owned by John Friedline and has an easement to the City. Ms. Kolata stated that Redevelopment is trying to decide how to enhance the East H:\ HOME\ CPHIPPS \WPDATA \COMMSN\081597.MIN -5- COMMISSION APPROVED THE COMMUNICATIONS FROM NEW HORIZON MINISTRY AND LA CASA DE AMISTAD THERE WERE NO OLD BUSINESS ITEM 6.M. ADDED South Bend Redevelopment Commission Regular Meeting - August 15, 1997 6. NEW BUSINESS (CONT.) a. continued.... Bank Trail given the topography and the existing easements. Also, we are wondering if the existing easements need to be revised. She also noted that the parcel owned by John Friedline is being looked at by an interested party purchasing for possible residential development. The topographic survey will help us see if it will all fit. Ms. Kolata stated that the proposal from The Abonmarche Group for the topographic survey is in the amount of $4,000. She also stated that the Abonmarche Group was chosen because Tom Osterling is a surveyor with The Abonmarche Group and he was the surveyor on the East Bank Trail project with another firm. She also noted that he is familiar with the land and the property. Ms. Schwartz asked if John Friedline is going to share in the cost of the topographic survey. Ms. Kolata stated that he was not approached on sharing the cost. She noted that the people interested in purchasing John Friedline's portion of the property can be asked to share in the cost of the topographic survey. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the proposal from The Abonmarche Group for topographic survey of property west of Niles Avenue to St. Joseph River, subject to the staff asking John Friedline and/or his potential purchaser to participate in H:\ HOME\ CPHIPPS \WPDATA \COMMSN\081597.MIN -6- COMMISSION APPROVED THE PROPOSAL FROM THE ABONMARCHE GROUP FOR TOPOGRAPHIC SURVEY FOR PROPERTY WEST OF NILES AVENUE TO ST. JOSEPH RIVER South Bend Redevelopment Commission Regular Meeting - August 15, 1997 the cost of the topographic survey. b. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 433 S. Grant St. (Tomas and Frances Munoz) Ms. Kolata stated that the loan to Tomas and Frances Munoz is in the amount of $14,900 at 3% interest for 7 years with monthly payments of $196.88 The grant is in the amount of $9,803.20. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property located at 433 S. Grant St. (Tomas and Frances Munoz) c. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 2114 W. Bertrand St. (Raymond and Virginia Zaworski) Ms. Kolata stated that the loan to Raymond and Virginia Zaworski is in the amount of $4,550 at 3% interest for 3 years with monthly payments of $132.32 The grant is in the amount of $3,432. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property located at 2114 W. Bertrand St. (Raymond and Virginia Zaworski) H:\ HOME\ CPHIPPS \WPDATA \COMMSN\081597.MIN -7- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 433 S. GRANT ST. (TOMAS AND FRANCES MUNOZ) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 2114 W. BERTRAND ST. (RAYMOND AND VIRGINIA ZAWORSKI) South Bend Redevelopment Commission Regular Meeting - August 15, 1997 6. NEW BUSINESS (CONT.) d. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 424 - 427 '/Z W. LaSalle. (Joseph McHatton) Ms. Kolata stated that this Certificate of Waiver forgives $1,000 as of July 30, 1997. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 427 - 427 '/2 W. LaSalle. (Joseph McHatton) e. Commission approval requested for Satisfaction of Debt for property located at 427 - 427 % W. LaSalle for Joseph McHatton. Ms. Kolata stated that Joseph McHatton has completed the ten year period of the Rental Rehab Loan and 10% of the amount has been waived each year. Joseph McHatton has met all the inspection requirements and the rental requirements. Ms. Kolata stated that this document will be recorded to reflect his completion of the loan requirements. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the Satisfication of Debt for property located at 427 - 427 W. LaSalle for Joseph McHatton. H:\ HOME \CPHIPPS \WPDATA \COMMSN\081597.MIN -8- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 427 - 427 '/z W. LASALLE. (JOSEPH MCHATTON) COMMISSION APPROVED THE SALIFICATION OF DEBT FOR PROPERTY LOCATED AT 427 - 427/2 W. LASALLE FOR JOSEPH MCHATTON South Bend Redevelopment Commission Regular Meeting - August 15, 1997 6. NEW BUSINESS (CONT.) L Commission approval requested for Satisfaction of Obligations and Release of Mortgage for property located at 427 -4271/2W. LaSalle for Joseph McHatton. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the Satisfaction of Obligations and Release of Mortgage for property located at 427 427 %2 W. LaSalle for Joseph McHatton. g. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 803 W. Washington. (John Friedline) Ms. Kolata stated that this Certificate of Waiver forgives $4,450 as of July 24, 1997. Upon a motion by Mr. Donoho, 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 803 W. Washington. (John Friedline) h. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 421 Blaine. (Nicholas and Mary Ann Kenkel) Ms. Kolata stated that this Certificate of Waiver forgives $750.00 as of January 31, H:\IiOME\ CPHIPPS \WPDATA \COMMSN\081597.MIN -9- COMMISSION APPROVED THE SATISFACTION OF OBLIGATIONS AND RELEASE OF MORTGAGE FOR PROPERTY LOCATED AT 427 427 'h W. LASALLE FOR JOSEPH MCHATTON COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 803 W. WASHINGTON. (JOHN FRIEDLINE) South Bend Redevelopment Commission Regular Meeting - August 15, 1997 6. NEW BUSINESS (CONT.) h. continued.... x0A Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 421 Blaine. (Nicholas and Mary Ann Kenkel) i. Staff report on acquisition of property in the Sample -Ewing Development Area. There was no Staff Report. j. Staff report on acquisition of property in the Airport Economic Development Area. There was no Staff Report. k. Staff report on disposition of property in the South Bend Central Development Area. There was no Staff Report. 1. Commission approval requested for Certificate of Completion for Lex Investment, Inc. for property located at 505 W. Washington in the West Washington - Chapin Development Area. Ms. Kolata stated that the Commission sold this property to Lex Investment, Inc. H:\ Ii OME\ CPHWPS \WPDATA \COMMSN\081597.MIN _10- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 421 BLAINE. (NICHOLAS AND MARY ANN KENKEL) THERE WAS NO STAFF REPORT THERE WAS NO STAFF REPORT THERE WAS NO STAFF REPORT South Bend Redevelopment Commission Regular Meeting - August 15, 1997 6. NEW BUSINESS (CONT.) 1. continued.... and Lex Investment, Inc. had an obligation to pave a portion of the property for a parking lot and do landscaping around the parking lot and property. This work is now completed and they have requested the return of their Performance Guarantee. Upon a motion by Mr. Donoho, seconded by Ms. Schwartz and unanimously carried, the Commission approved the Certificate of Completion for Lex Investment, Inc. for property located at 505 W. Washington in the West Washington- Chapin Development Area. m. Commission approval requested for Resolution No. 1537 approving an application for tax deduction for property located in the South Bend Central Development Area. (South Bend Heritage Foundation for the benefit of Zellia and Johnny Crook and Luping and Eric McGinness) Mike Beitzinger stated that the homes for which this tax abatement would apply have already been completed. He stated that this came about as a result of action taken by the South Bend Common Council in the Spring of 1996. The South Bend Common Council passed an ordinance that incorporated quite a few subdivisions and other areas within the city in which new home developments would like to be seen. Rather than having each and every home owner go through the process of applying H:\ HOME\ CPHIPPS \WPDATA \COMMSN\081597.MIN _11- COMMISSION APPROVED THE CERTIFICATE OF COMPLETION FOR LEX INVESTMENT, INC. FOR PROPERTY LOCATED AT 505 W. WASHINGTON IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - August 15, 1997 6. NEW BUSINESS (CONT.) m. continued.... for a tax abatement and getting individual approval from the City of South Bend Common Council, the Council determined that they would declare this particular area eligible for tax abatement, and the home owners would automatically receive the tax abatement. Mike Beitzinger stated that South Bend Heritage Foundation learned of the new ordinance and they began the process for the construction of the two homes located at 804 and 808 W. LaSalle with the understanding that the abatement for the two homes would automatically be applied to the sale of these properties. The City subsequently reviewed the ordinance found it not completely in compliance with state requirements concerning residential tax abatement, so the Council then repealed the ordinance and passed a revised ordinance that again incorporated the area. However, the revised ordinance still required the owners of the properties to come forward individually and petition for the tax abatement. Mike Beitzinger stated that this wasn't brought to South Bend Heritage Foundation's attention until early this year. Mike Beitzinger stated that state law allows the City of South Bend to waive the requirement that the abatement be approved prior to the start of construction. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\081597.MIN -12- South Bend Redevelopment Commission Regular Meeting - August 15, 1997 6. NEW BUSINESS (CONT.) m. continued.... There is a special provision in the state law for such circumstances as these. The Common Council will utilize that waiver to hold a public hearing on the waiver and will then consider a resolution granting the tax abatement. He also stated that he had an extensive conversation with Anne Bruneel regarding the Redevelopment Commission's role in this whole process. The Commission does not have a role in approval of the waiver but would have to approve any abatement in a tax increment area. South Bend Heritage, on behalf of the homeowners, is now requesting consideration of a resolution by the Redevelopment Commission that would allow the City Council to consider the abatement that will incorporate this special waiver. Mike Beitzinger gave the staff report. South Bend Heritage Foundation has developed the two new single - family residences located at 804 and 808 W. LaSalle Avenue. The house at 804 W. LaSalle is a two -story home of approximately 1,280 square feet. The house at 808 W. LaSalle is a one -story home of approximately 1,100 square feet. Each home features vinyl siding, range, range hood, refrigerator, dishwasher, and a garage disposal. The homes were built to compliment the design of the surrounding homes. The cost of the house located at 804 W. LaSalle totaled approximately H:\ HOME \CPHIPPS \WPDATA \COMMSM081597.MIN -13- South Bend Redevelopment Commission Regular Meeting - August 15, 1997 6. NEW BUSINESS (CONT.) m. continued.... $79,700. The cost of the house located at 808 W. LaSalle totaled approximately $74,900. The total project cost totals approximately $154,600. This project was a further compliment to the South Bend Heritage Foundation LaSalle Avenue Project, which involved the acquisition and substantial rehabilitation of ten existing seriously substandard homes with a subsequent sale at affordable prices to low- income families. The two new homes were sold using subsidies offered by the Housing Assistance Office and South Bend Heritage Foundation of up to $22,000 making them affordable to low- income families. A review of the tax abatement records finds that South Bend Heritage has been associated with several previous tax abatements. South Bend Heritage Foundation is in compliance with the reporting requirements for the previous abatements. A review of the tax abatement maps finds that the properties are located in the Residentially Distressed Area, LaSalle Avenue - Chapin. A review of the Redevelopment allocation areas finds that the property is located in the West Washington- Chapin Development Area which is a Tax Incremental Financing Allocation Area, therefore, the tax abatement first requires the approval of the South Bend Redevelopment H:\ HOME\ CPHIPPS \WPDATA \COMMSN\081597.MIN -14- South Bend Redevelopment Commission Regular Meeting - August 15, 1997 6. NEW BUSINESS (CONT.) m. continued.... Commission. Under I.C. 6-1.1-12.1 - 11.3(c), which allows the South Bend Common Council to waive the requirement to submit a Statement of Benefits form prior to initiating the redevelopment project, and under the Single Family Real Property Tax Abatement, of the Tax Abatement Ordinance, as amended, South Bend Heritage Foundation meets the qualifications for the five year real property tax abatement. Using the estimated project cost of $79,700, real property taxes generated over five years for the property located at 804 W. LaSalle Avenue are estimated to total approximately $11,969.20. Taxes abated over five years total approximately $8,012.86. Taxes still paid with the abatement total approximately $3,956.35. Using the estimated project cost of $74,900, real property taxes generated over five years for the property located at 808 W. LaSalle Avenue are estimated to total approximately $11,167.92. Taxes abated over five years total approximately $8,012.86. Taxes still paid with the abatement total approximately $3,155.06. Dea Andrews, representative of South Bend Heritage Foundation, presented to the Commission pictures of the two homes located at 804 and 808 W. LaSalle. She stated that Luping and Eric McGinness H:\ HOME\ CPHIPPS \WPDATA \COMMSN\081597.MIN -15- South Bend Redevelopment Commission Regular Meeting - August 15, 1997 6. NEW BUSINESS (CONT.) m. continued.... reside at the house located at 808 W. LaSalle Avenue. She stated that Johnny and Zelia Crook reside at the house located at 804 W. LaSalle Avenue. Mr. Hunt was concerned that the construction of the homes proceeded based on the assurance of the Common Council that the tax abatement would be forthcoming. Ms. Schwartz asked Dea Andrews when the permit for the construction was issued. Mike Beitzinger stated that to his knowledge the permit issuance date was in either April or May of 1996. Ms. Schwartz asked Dea Andrews if the property was sold by South Bend Heritage Foundation to the property owners directly or was it a lease purchase. Dea Andrews stated that the two lots were sold to Garden Homes, Inc.; Garden Homes, Inc. then built the houses. She also stated that South Bend Heritage Foundation and the Housing Assistance Office both were involved with the construction of the two properties. Ms. Schwartz asked if South Bend Heritage Foundation is the proper petitioner. Mike Beitzinger stated that South Bend Heritage Foundation was the owner at the time the project was initiated. Ms. Schwartz asked if the terms of the sale to the property owners included an anticipation of payment of taxes. Dea H:\HOME\ CPHIPPS \WPDATA \COMMSN\081597.MIN -16- South Bend Redevelopment Commission Regular Meeting - August 15, 1997 6. NEW BUSINESS (CONT.) m. continued.... Andrews stated that to her knowledge she believes the property owners were told they would receive the 1 tax abatement. Mike Beitzinger stated that the project was initiated under the assumption that a tax abatement was already granted for the two properties. Mike Beitzinger stated that this is the first time the Redevelopment Commission has been faced with this situation. He also stated that the Common Council has been faced with this type of situation on several occasions. Mike Beitzinger noted that the Common Council has determined that state law allows for granting of a tax abatement after a permit for construction of a project has been issued and construction has begun. Ms. Schwartz stated that she would like to table item 6.m. until the Commission can speak with the current property owners regarding their closing documents and the representations that were made to the property owners at the time they purchased the property. She would aslo like information on the date the ordinance was rescinded.. Mike Beitzinger stated that the rescission of the ordinance occurred in November of 1996. Upon a motion by Ms. Schwartz, seconded TABLED ITEM 6.M. by Mr. Donoho and unanimously carried, the Commission tabled item 6.m. H:\HOME\CPHEPPS\WPDATA\COMMSN\081597.MIN -17- South Bend Redevelopment Commission Regular Meeting - August 15, 1997 7. PROGRESS REPORTS Ms. Kolata reported that this is the last day for our intern, Andy Laurent. He is returning to Ball State University for his junior year. This is his second summer as an intern and he's done a fine job. Steve Moerlein, owner of the property at 214 W. Jefferson, stated that to his understanding, the City of South Bend is to acquire a quarter block in the downtown area which includes a piece of property owned by him. Ms. Kolata stated that Redevelopment has contracted for survey work, title work, and for two appraisals of the properties. Steve Moerlein stated that he saw in the Redevelopment Commission Minutes that the OPN appraisal work was bid out. He asked if there qW was any additional work contracted out. Ms. Kolata stated that the survey work and title work was approved but she wasn't sure of the approval date. Steve Moerlein stated that in his discussion with Jon Hunt last week, Jon Hunt indicated that nothing was moving forward and that the possible acquisition of his property would be on this week's agenda; that's why Mr. Moerlein and his associate attended today's Commission meeting. Steve Moerlein asked what is the purpose of acquiring this quarter block. Ms. Kolata stated that Redevelopment is looking to possibly aquire this quarter block along with additional pieces of property throughout the downtown area. She stated that the intent is to get the preliminary information needed to decide whether or not to move forward with acquiring these properties for future H:\ HOME\ CPHIPPS \WPDATA \COMMSM081597.MIN -18- South Bend Redevelopment Commission Regular Meeting - August 15, 1997 development. It's the staff recommendation to possibly amend the redevelopment plan and put that quarter block on the acquisition list. She also noted that at that point, the Redevelopment Commission would hold a public hearing and the property owners would be notified. Ms. Schwartz stated that from the staffs standpoint the Commission would need to take a look at the possible acquisition of Mr. Moerlein's property from an overall downtown redevelopment future planning standpoint and a cost standpoint. Ms. Kolata stated that the process for amending a plan involves a public hearing held by the Commission that gives notice to property owners that the Commission is looking to acquire their property for future development. Steve Moerlein stated that to his understanding, there is a written Redevelopment Plan in existence. Ms. Kolata stated to Steve Moerlein that she could get him a copy of the Redevelopment Plan. Steve Moerlein asked what Redevelopment's plan for these properties is. Ms. Kolata stated that the staff is looking at possibly assembling that quarter block under a single - ownership that would be available for new office development. Steve Moerlein asked if the staff has a specific developer or owner in mind. Ms. Kolata stated that when the Commission buys and assembles land, it goes through an acquisition process. The land then goes through a disposition process. The Commission would set minimum standards as to the size of development and the use it would have. The Commission would then H:\ HOME\ CPHIPPS \WPDATA \COMMSN\081597.MIN -19- South Bend Redevelopment Commission Regular Meeting - August 15, 1997 have the assembled, cleared land appraised as a single piece of property and put it up for bid. At that point, the staff would know if they would have a developer immediately or in the future. Ms. Kolata stated that that quarter block is being looked at because of the development of the Leighton Plaza project which is now underway. With that development, there is no longer any land available for Class "A" office building development. She also noted that there is and will be a continued demand for office building space. The staff has been looking at the downtown for potential sites where this development could take place. Mr. Moerlein asked if someone has contacted the Redevelopment Commission or the AWN Redevelopment staff on developing that quarter block. Ms. Kolata stated that there is no bid or proposal for development of that quarter block. Ms. Schwartz stated that the Commission can only respond to a public bid after they have received title to the property and have assembled it. Steve Moerlein stated that he heard rumors, before he was notified by the Redevelopment staff, that there was a private entity looking at that quarter block. He stated to his understanding of the Indiana law, if the Division of Redevelopment plans to acquire this quarter block for the benefit of a private entity —it's illegal. Ms. Kolata stated that it is not the Division of Redevelopment's intent to undertake anything illegally and that the staff does and will follow the Redevelopment Statute. If the Redevelopment Commission amends their plan and decides to put the H:\ HOME\ CPHIPPS \WPDATA \COMMSN\081597.MIN -20- South Bend Redevelopment Commission Regular Meeting - August 15, 1997 quarter block on the acquisition list, they will follow the acquisition procedure. Steve Moerlein asked if there was a timeline for amending the plan. Ms. Kolata stated that the appraisers have up to sixty days to complete the appraisal work, and the appraisers will notify Mr. Moerlein when they begin the appraisal process. Ms. Kolata noted that he will have the opportunity to accompany the appraisers through the property and give them any information regarding the property. She also noted that the appraisers are waiting for the title work and survey work to be complete, and to her knowledge, she doesn't believe that work has been completed. Steve Moerlein asked if any of the other five properties that Redevelopment is looking at have been contracted for appraisal work or survey work. Ms. Kolata stated that appraisals are being done on South Michigan Street, the corner of Washington and Michigan and Fellows and Calvert Street. Steve Moerlein stated that from the information he has gathered, Redevelopment does intend to acquire that quarter block. He noted that from what Jon Hunt indicated at their meeting that Eminent Domain will be used to acquire the quarter block if an agreement cannot be reached. He stated that Indiana law doesn't allow utilizing Eminent Domain if it is not for a specific public purpose. He implied that Redevelopment's potential future use of this quarter block is illegal. Steve Moerlein introduced his architect, Gregory Kil. Gregory Kil stated that Jon Hunt suggested that the whole quarter H:U iOME\CPHIPPS \WPDATA \COMMSN\081597.MIN -21- South Bend Redevelopment Commission Regular Meeting - August 15, 1997 block was needed or desired by developers. Mr. Kil distributed two sketches showing how a new office building could be constructed while leaving Mr. Moerlein's building alone. Ms. Schwartz stated she wanted to respond to Steve Moerlein's statement that the action that the Commission possibly will take regarding acquiring that quarter block is improper, illegal, and for a private purpose instead of a public purpose. She stated that since the Commission has no proposed action in front of it, they can't respond with regards to a specific action. But they can respond in saying that the Commission would never knowingly acquire that quarter block improperly, illegally, or for a private purpose instead of a public purpose. In fact, they would carefully avoid doing so. She also noted that the type of challenge Mr. Moerlein brought to the Commission generally, and with no specific proposal or plan in front of the Commission, is a kind of challenge that has been litigated in Indiana and the authority of the Redevelopment Commission to acquire land for future redevelopment has been held to be a public purpose in Indiana. She stated that she was not trying to get into a legal debate with him because that wasn't her position. Ms. Schwartz stated that his concerns and his bringing alternative arrangements forward to the Commission are greatly appreciated. Mr. Moerlein stated that his intention is not as a threat, but that his property is unique to his family and there's nothing else in the area that could replace it. He stated the property next door to Osco was a possibility, but to his understanding that property is being leased out. If his property is pursued for acquisition by Redevelopment he will litigate it. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\081597.MIN -22- South Bend Redevelopment Commission Regular Meeting - August 15, 1997 Ms. Schwartz asked Mr. Moerlein if he is the sole property owner. He stated that he and his fiancee own the property. Mr. Hunt stated that the Commission greatly appreciates his concerns and the Commission is willing to take them under consideration. Mr. Hunt also noted that there is no specific plan at this point for potential development of the quarter block. Ms. Kolata stated that Mr. Moerlein statements and concerns will be taken into consideration. Mr. Moerlein stated that he hopes that the Commission would stop the process of the title work, survey work and the appraisal work related to his property. Mr. Hunt explained to Mr. Moerlein that approximately a year and a half ago, when he approached the Commission regarding a tax abatement, he believes, at that time Steve Moerlein was told by the Commission that they didn't approve his tax abatement because they didn't was based on the most efficient use of that property. Steve Moerlein stated that the question was raised and the statement made was the Commission didn't know what they were going to do in the downtown area yet. Ms. Kolata stated that the Commission still hasn't made a decision as to what will be done with that quarter block. Mr. Hunt stated that he recalls specifically that former Commissioner Hosnacki stated that he did not feel that was the best use for that property. Ms. Schwartz asked Ms. Kolata if it's part of the staff's procedure to send a notice to the property owners prior to having the appraisers contacting the the property owners. Ms. Schwartz stated that it would be premature to have a contact prior to Commission action H:\HOME\CPHEPPS\WPDATA\COMMSN\081597.MIN -23- . South Bend Redevelopment Commission Regular Meeting - August 15, 1997 which she recalls was just taken —in terms of timing. Ms. Kolata stated that the staff had intended to call Steve Moerlein but hadn't done so. Ms. Schwartz stated that the Commission's action would have clarified that those steps would be taken. Steve Moerlein thanked the Commission for their consideration. 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is scheduled for September 5, 1997 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Ms. Schwartz made a motion that the meeting be adjourned. The motion was seconded by Mr. Donoho a meeting was adjourned at 11:0 a. Robert W. Hunt;Rresident ADJOURNMENT Ann 15,Kolata, Director H:\HOME\CPHOPS\WPDATA\COMMSM081597.MIN -24-