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HomeMy WebLinkAboutRM 08-01-97SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 1, 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. Eugenia S. Schwartz Mr. Philip J. Faccenda Legal Counsel: Ms. Anne E. Bruneel Redevelopment Staff: Mr. Jon Hunt, Executive Director Ms. Vangelean Binion, Recording Secretary Ms. Joanna Smith, Economic Development Specialist Business Assistance: Mr. Michael Beitzinger, Economic Development Specialist Others: Ms. Dea Andrews, South Bend Heritage Foundation 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 July 18, 1997. Mr. Faccenda made a motion to approve the Minutes of the Regular Meeting of July 18, 1997. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF JULY 18, 1997 Redevelopment Commission Claims submitted August 1, 1997 for approval. SAMPLE -EWING FUND 414 Wilma Smith and Russell Smith $850.00 H:\ HOME\ CPHIPPS \WPDATA \COMMSN\080197.MIN -I- South Bend Redevelopment Commission Regular Meeting - August 1, 1997 3. APPROVAL OF CLAIMS (CONT.) SAMPLE -EWING FUND 414 Mary Jarvis James F. and Sandra McCune St. Joseph County Treasurer Troyer Group Inc. American Electric Power Norwest Bank, Indiana Reith Riley Construction St. Joseph County Treasurer Paul D. Hauck Norwest Bank, Indiana N.A. Joseph Hunt and Yvonne Snyder St. Joseph County Treasurer Rachel Osborn Wilma Smith and Russell Smith and Mohr & Mohr Housing LLC. rw SBCDA GENERAL ACCOUNT 420 Fund 314 Fund 328 Fund 415 Fund 312 Lawson - Fisher FUND 324 Fund 315 Fund 319 J.F. New & Associates J.F. New & Associates Farmers Workshop Peirce & Associates York Title & Escrow D. L. Carpenter and Associates Heptagon Fund 316 COMMUNITY DEVELOPMENT 212 Business Systems H:\IiOME\CPHIPPS\WPDATA\COMMSN\080197.MfN -2- $2,611.92 $11,606.06 $332.02 $950.35 $283.82 $70,306.94 $70,139.49 $327.55 $14,172.45 $906.50 $950.00 $327.55 $850.00 $3,570.00 $424,034.00 $187,338.00 $950,379.00 $417,288.00 $277.42 $418,787.00 $22,945.00 $1,430.00 $850.00 $23.80 $2,680.00 $200.00 $500.00 $675.00 $229,447.00 $44.99 South Bend Redevelopment Commission Regular Meeting - August 1, 1997 3. APPROVAL OF CLAIMS (CONT.) COMMUNITY DEVELOPMENT 212 Federal Express $13.77 South Bend Drafting Supply $35.72 East Race Printing and Graphics $29.80 Liability Insurance $428.58 John March, petty cash $125.00 John March, petty cash $75.00 John March, petty cash $9.00 Public Works $170.10 Public Works $27.00 Public Works $422.10 South Bend Drafting $28.01 South Bend Drafting $5.40 Tri- County News $13.38 Tri- County News $13.68 Tri- County News $13.07 Tri- County News $16.72 Tri- County News $13.38 Fund 226 (Liability Insurance) $428.58 FUND 310 Norwest Bank, Indiana, NA. $220,000.00 Norwest Bank, Indiana $49,896.87 FUND 408 Walker Parking Consultants $81,514.22 Matthews, Purucker, Anella $3,815.00 FUND 315 Mellon Bank, F.S.B. $207,750.00 FUND 410 South Bend Tribune $585.60 Upon a motion by Mr. Donoho, seconded by Mr. COMMISSION APPROVED THE CLAIMS Faccenda and unanimously carried, the Commission SUBMITTED AUGUST 1, 1997 AND ORDERED approved the Claims submitted August 1, 1997 and THE CHECKS TO BE RELEASED ordered the checks to be released. H:\HOME\CPHrPPS\WPDATA\COMMSN\080197.MfN -3- South Bend Redevelopment Commission Regular Meeting - August 1, 1997 4. COMMUNICATIONS Mr. Hunt stated that there was one Communication. Jon Hunt read a letter to the Commission from himself addressed to Anne Bruneel. Jon Hunt asked that the letter be entered into the record. There were no objections and the letter was entered and read as follows: August 1, 1997 Ms. Anne Bruneel Attorney Redevelopment Commission 1400 County -City Building South Bend, Indiana 46601 Dear Anne: On August 1, 1997 the South Bend Redevelopment Commission will consider a tax abatement for American Home Dreams, Inc. (AHDI) for the development of affordable housing for first -time, lower income home buyers in the Southeast Neighborhood. AHDI is a private, non-profit company established to build or rehabilitate single-family housing in South Bend's lower income neighborhoods. I would like to note for the record as I did in my February 10, 1997 and April 28, 1997 letters to Board of Public Works and my May 2, 1997 letter to the Redevelopment Commission, and my May 12, 1997 letter to the Common Council, that 1 serve on the board ofAHDI.. It is anticipated that AHDI (with its recent designation as a 501(c)(3) non-profit entity) will continue to develop as an organization and increase its production level. AHDI anticipates making future requests to purchase vacant lots as well as additional tax abatement petitions for new single family home construction within the Southeast Neighborhood. Should you have any questions or require additional information, please call me at 235 -9371. Sincerely, Jon R. Hunt Executive Director c: Kathy Cekanski- Farrand H:\ HOME\ CPHIPPS \WPDATA \COMMSN\080197.MIN -4- South Bend Redevelopment Commission Regular Meeting - August 1, 1997 5. OLD BUSINESS There was no Old Business. THERE WAS NO OLD BUSINESS 6. NEW BUSINESS a. Commission approval requested for Resolution No. 1534 approving an application for real property tax deduction for property located in the West Washington- Chapin Development Area. (South Bend Heritage Foundation for the benefit of Garden Homes, Inc.) Mike Beitzinger gave the staff report. Garden Homes proposes to develop two new single residences on the above identified lots on West LaSalle Avenue. The houses will be approximately 1,000 square feet each with a fully insulated basement and will be built to compliment the design of the surrounding homes. One home will be two story while the other will be one story and each home will have 3 bedrooms and 1 bath. The homes will each feature vinyl siding, range, range hood, refrigerator, dishwasher, and garbage disposal. The cost of each home is estimated to be around $75,000, making the total project cost approximately $150,000. This project is a compliment to the South Bend Heritage Foundation LaSalle Avenue Project, which involved the acquisition and substantial rehabilitation of 10 existing seriously substandard homes and the subsequent sale at affordable prices to low income families. The two new homes H:\ HOME\ CPHIPPS \WPDATA \COMMSN\080197.MIN -5- South Bend Redevelopment Commission Regular Meeting - August 1, 1997 6. NEW BUSINESS (CONT.) a. continued.... will also be 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 Garden Homes has been affiliated with a series of tax abatements granted to G & M Properties for new home construction in the far northwest neighborhood and the Rum Village area. The tax abatements granted to G & M Properties were listed in the report. South Bend Heritage has also been associated with several previous tax abatements. Both G & M Properties and South Bend Heritage Foundation are in compliance with any reporting requirements for the previous abatements. The building commissioner has reviewed this petition and finds the properties to be properly zoned for the proposed use. A review of the tax abatement maps finds that the properties are located in the Residentially Distressed Area. A review of the Redevelopment allocation area finds that the property is located in the West Washington- Chapin 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 H:\HOME\ CPHIPPS \WPDATA \COMMSN\080197.MIN -6- South Bend Redevelopment Commission Regular Meeting - August 1, 1997 6. NEW BUSINESS (CONT.) a. continued.... the Tax Abatement Ordinance finds that Garden Homes meets the qualifications for a five year real property tax abatement. Using a project cost of $75,000 and realizing that the tax abatement is capped at $12,000 of assessed valuation, taxes generated over five years total approximately $11,184.61. Taxes abated over five years total approximately $8,012.86. Taxes still paid with the abatement total approximately $3,171.76. Ms. Andrews presented to the Commission before and after pictures of houses located on LaSalle Street that were rehabbed with HOME funds. Dea Andrews presented drawings of a one- story house and a two -story house that will be constructed on lots located on LaSalle Street. She noted that one of the houses will be constructed on a lot that already has a garage located on it. The other house that will be constructed will have a garage added at a later date. She noted that the use of tax abatement is really a very important tool for South Bend Heritage to get developers interested in working on projects in distressed neighborhoods. She noted that one of South Bend Heritage's aims is to get more and more private investment in the inner city neighborhoods and that the tax H:\ HOME\CPHIPPS \"DATA \COMMSM080197.MIN -7- South Bend Redevelopment Commission Regular Meeting - August 1, 1997 6. NEW BUSINESS (CONT.) a. continued.... abatements help. Ms. Schwartz asked if the tax abatement will ultimately benefit the low- income homeowner as opposed to the developers. Dea Andrews noted that is correct. Dea Andrews stated that the tax abatement gives the developer some comfort that people will be interested in moving into the house. She also noted that a developer can tell a party that's interested in purchasing one of the houses, that the house has tax abatement for the first five years. Ms. Schwartz asked Dea Andrews if she was saying that the tax abatement increases the potential market for the houses. Dea Andrews stated that is correct. Upon a motion by Mr. Faccenda, seconded by Ms. Schwartz and unanimously carried, the Commission adopted Resolution No. 1534 approving an application for real property tax deduction for property located in the West Washington- Chapin Development Area. (South Bend Heritage Foundation for the benefit of Garden Homes, Inc.) b. Commission approval requested for Resolution No. 1535 approving an application for real property tax deduction for property located in the Sample -Ewing Development Area. (American Home Dreams, Inc.) H:\ HOME\ CPHIPPS \WPDATA \COMMSM080197.MIN -8- COMMISSION ADOPTED RESOLUTION NO. 1534 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA. (SOUTH BEND HERITAGE FOUNDATION FOR THE BENEFIT OF GARDEN HOMES, INC.) s South Bend Redevelopment Commission Regular Meeting - August 1, 1997 6. NEW BUSINESS (CONT.) b. continued.... Mike Beitzinger gave the staff report. American Home Dreams, Inc. proposes to develop new single family residences on the identified lots in the southeast neighborhood area. The houses will be approximately 2,000 square feet each with a 1,000 square foot full basement and will have 3 bedrooms, 2 '/2 baths, a patio, a porch and a two car attached garage. Each home will have vinyl siding, range, and range hood, refrigerator, dishwasher, and garbage disposal. Each home will also feature a fully finished basement, air conditioning, security system and sodded yard. The cost of each home is estimated at $74,500, making the total project cost approximately $745,000. This is a continuation of a project started in May that will ultimately result in as many as 16 new homes to be built in this area. A review of the tax abatement records, finds that American Home Dreams, Inc. was granted a residential real property tax abatement in May 1997. The building commissioner has reviewed this petition and finds the properties to be properly zoned for the proposed use. A review of the tax abatement maps finds that the property is located in the designated Southeast - Broadway Residentially Distressed Area. A review of the Redevelopment allocation areas finds that the property is located in the Sample - Ewing Development Area which is a Tax H:\ HOME\ CPHIPPS \WPDATA \COMMSM080197.MIN -9- South Bend Redevelopment Commission Regular Meeting - August 1, 1997 6. NEW BUSINESS (CONT.) b. continued.... Incremental Financing Allocation Area, therefore, the petition first requires the approval of the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance as amended finds that American Home Dreams, Inc. meets the qualifications for a five year real property tax abatement. Using the total project cost of $745,000, realizing that the tax abatement is capped at $12,000 of assessed valuation, taxes generated over five years total approximately $11,101.14. Taxes abated over five years total approximately $8,012.86. Taxes still paid with the abatement total approximately $3,088.29. Rick Milton, the owner of American Home Dreams, Inc., was not present at the meeting. Ms. Schwartz asked Mike Beitzinger what was the status, if he knew, of the houses that tax abatements were previously granted for. Mike Beitzinger stated that one of the houses was completed. He also noted that he had the opportunity to walk through the finished house and it is beautiful. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1535 approving an application for real property tax deduction for property located in the Sample -Ewing Development Area. COMMISSION ADOPTED RESOLUTION NO. 1535 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE SAMPLE -EWING DEVELOPMENT AREA. (AMERICAN HOME DREAMS, INC.) H:\I-IOME\ CPHIPPS \WPDATA \COMMSN\080197.MIN -10- South Bend Redevelopment Commission Regular Meeting - August 1, 1997 6. NEW BUSINESS (CONT.) (American Home Dreams, Inc.) c. Commission approval requested for appraisal services for property located in the South Bend Central Development Area, Airport Economic Development Area, and Sample -Ewing Development Area. Jon Hunt stated that five proposals were received. The staff recommends accepting the proposal from R.E. Pitts and Associates in the amount of $4,000 for appraisal services for two properties located at the corner of Calvert and Fellows in the Sample -Ewing Development Area. The staff also recommends accepting the proposal from Ralph D. Lauver in the amount of $5,600.00 for appraisal services for the same two properties. The staff recommends accepting the proposal from R.E. McCloskey and Associates, Inc. in the amount of $8,000 and the proposal from Ralph D. Lauver in the amount of $8,350 for appraisal of properties located in the Sample -Ewing Development Area. There are four properties to be appraised in the 1100 Block of South Michigan Street. The staff recommends accepting the proposal from R.E. McCloskey and Associates, Inc. in the amount of $9,500 and the proposal from R.E. Pitts & Associates, Inc. in the amount of $9,000 for appraisal of properties located in the H:\ HOME\ CPHIPPS \WPDATA \COMMSN\080197.MIN _11- South Bend Redevelopment Commission Regular Meeting - August 1, 1997 6. NEW BUSINESS (CONT.) c. continued.... South Bend Central Development Area. There are three properties to be appraised at the southwest corner of Jefferson and Main. The staff recommends accepting the proposal from R.E. McCloskey and Associates, Inc. in the amount of $8,000 and the proposal from R.E. Pitts & Associates in the amount of $6,800 for appraisal of properties located in the South Bend Central Development Area. There are two properties to be appraised at the northwest corner of Michigan and Washington. The staff recommends accepting the proposal from Douglas L. Carpenter and Associates in the amount of $500 and the proposal from the Appraisal Group in the amount of $1,500 for appraisal of property located in the Airport Economic Development Area. These appraisals are for land at the southwest corner of the Toll Road and the St. Joseph Valley Parkway. Upon a motion Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the proposals for appraisal services for property located in the South Bend Central Development Area, Airport Economic Development Area and Sample -Ewing Development Area in accordance with the staff recommendations. COMMISSION APPROVED THE PROPOSALS FOR APPRAISAL SERVICES FOR PROPERTY LOCATED IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA, AIRPORT ECONOMIC DEVELOPMENT AREA AND SAMPLE -EWING DEVELOPMENT AREA H:\ HOME\ CPHIPPS \WPDATA \COMMSN\080197.MIN -12- South Bend Redevelopment Commission Regular Meeting - August 1, 1997 6. NEW BUSINESS (CONT.) d. Commission approval requested for proposal for professional services for property located in the South Bend Central Development Area. Jon Hunt stated that these proposals are for appraisals related to the expansion of the Morris Civic Auditorium. As part of the project it will be necessary to acquire some land behind the Morris and it needs to be appraised. He noted that two proposals were received. One proposal was from Jerome E. Michaels, MAI, ranging from $4,000 to $5,000. The other proposal received was from R.E. McCloskey & Associates, Inc. ranging from $4,500 to $5,500. The staff recommends accepting both proposals from R.E. McCloskey & Associates, Inc. and Jerome E. Michaels, MAI. Ms. Schwartz asked Jon Hunt if he felt these amounts were reasonable. Jon Hunt stated that Cleo Hickey and Ann Kolata, who have been working closely with the Morris Civic project, felt comfortable with the proposals. Upon a motion by Mr. Faccenda, seconded COMMISSION ACCEPTED THE PROPOSALS FROM by Mr. Donoho and unanimously carried, JEROME E. MICHAELS, MAI AND R.E. MCCLOSKEY & the Commission accepted the proposals ASSOCIATES, INC. FOR PROFESSIONAL SERVICES from Jerome E. Michaels, MAI and R.E. FOR PROPERTY LOCATED IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA McCloskey & Associates, Inc. for professional services for property located in the South Bend Central Development Area. H:\ HOME \CPHIPPS \WPDATA \COMMSM080197.MIN -13- South Bend Redevelopment Commission Regular Meeting - August 1, 1997 6. NEW BUSINESS (CONT.) e. Commission approval requested for proposal from Abonmarche Group for design and construction engineering services for property located in the Airport Economic Development Area. Jon Hunt stated that James Riggs recommends accepting the proposal from Abonmarche Group in the amount of $25,900, for Tasks 1, 2, 3, 5A, 5B, 6A, and 6B only. Jon Hunt also noted that this proposal is for the design of right -of -way improvements needed for the development of the Dale Park property north of Brick Road. Also this proposal provides for construction engineering, preparation of bid specifications and the evaluation of contractor bids. Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda and unanimously carried, the Commission accepted the proposal from Abonmarche Group for design and construction engineering services for property located in the Airport Economic Development Area for Tasks 1, 2, 3, 5A, 5B, 6A, and 6B only. E Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 602 E. Haney. (Lorene Fowler) COMMISSION ACCEPTED THE PROPOSAL FROM ABONMARCHE GROUP FOR DESIGN AND CONSTRUCTION ENGINEERING SERVICES FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA FOR TASKS 1, 2, 3, 5A, 5B, 6A, AND 6B ONLY H:\ HOME\ CPHIPPS \WPDATA \COMMSM080197.MW -14- South Bend Redevelopment Commission Regular Meeting - August 1, 1997 6. NEW BUSINESS (CONT.) L continued.... Jon Hunt stated that the Certificate of Waiver forgives $850.00 as of July 11, 1997. Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda, and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 602 E. Haney. (Lorene Fowler) g. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 1215 E. Calvert. (Dennis & Janice Papczynski) Jon Hunt stated that this Certificate of Waiver forgives $1,213.90 as of February 1, 1997. Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda, and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 1215 E. Calvert. (Dennis & Janice Papczynski) h. Staff report on acquisition of property located in the Sample -Ewing Development Area. Jon Hunt stated that this counter offer is for a residential property located at 1212 COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 602 E. HANEY. (LORENE FOWLER) COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 1215 E. CALVERT (DENNIS & JANICE PAPCZYNSKI) H:\IiOME\CPHIPPS\WPDATA\COMMSM080197.MIN -15- South Bend Redevelopment Commission Regular Meeting - August 1, 1997 6. NEW BUSINESS (CONT.) h. continued.... Hoffman Court. The counter offer is from Paul D. Hauck in the amount of $14,500. The original purchase offer was $13,000. The staff recommends accepting the counter offer. Upon a motion by Mr. Faccenda, seconded COMMISSION ACCEPTED THE COUNTER OFFER FOR by Ms. Schwartz and unanimously carried, 1212 HOFFMAN COURT the Commission accepted the counter offer for 1212 Hoffman Court. i. Commission approval requested for Resolution No. 1536 approving the transfer of real property to the City of South Bend, Indiana. Jon Hunt stated that this transfer is for two lots located in the Sample -Ewing Development Area. These lots are located on East Broadway. The Board of Public Works intends to transfer these lots to American Home Dreams, Inc. Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission adopted Resolution No. 1536 approving the transfer of real property to the City of South Bend, Indiana. j. Commission approval requested for Quit -Claim -Deed for property located in the Sample -Ewing Development Area. COMMISSION ADOPTED RESOLUTION NO. 1536 APPROVING THE TRANSFER OF REAL PROPERTY TO THE CITY OF SOUTH BEND, INDIANA H:\ HOME\ CPHIPPS \WPDATA \COMMSM080197.MIN -16- South Bend Redevelopment Commission Regular Meeting - August 1, 1997 6. NEW BUSINESS (CONT.) j. continued.... Jon Hunt stated that this Quit -Claim -Deed is for the two lots located in the Sample- Ewing Development Area. Upon a motion by Mr. Donoho, seconded COMMISSION APPROVED THE QUIT- CLAIM -DEED by Mr. Faccenda and unanimously carried, FOR PROPERTY LOCATED IN THE SAMPLE -EWING the Commission approved the Quit - Claim- DEVELOPMENT AREA Deed for property located in the Sample - Ewing Development Area. 7. PROGRESS REPORTS There were no Progress Reports. 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is scheduled for August 15, 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. onoho seconded the motion and t e g was aojoupwd at 10:40 a.m. Robert W. Hunt, President THERE WERE NO PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT Ann E. Kolata, Director H:\HOME\ CPHIPPS \WPDATA \COMMSN\080197.MIN -17-