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Home My WebLink AboutRM 09-05-97SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING September 5, 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. 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 Urbanski, Recording Secretary Mr. James Riggs, Economic Development Specialist Mr. John Stark, 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 Mrs. Zellia Crook Mr. Mark Tamer, South Bend Chocolate Company Mr. Jay R. Harwood, South Bend Chocolate Company Mr. Robert J. Kastens 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 15, 1997. Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Minutes of H:\HONE\CPHIPPS\WPDATA\COMMSN\090597.MIN 4- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF AUGUST 15, 1997 South Bend Redevelopment Commission Regular Meeting - September 5, 1997 the Regular Meeting of August 15, 1997. b. Commission approved the Minutes of the Special Meeting of August 20, 1997. Upon a motion by Ms. Schwartz, seconded by Ms. Auburn and unanimously carried, the Commission approved the Minutes of the Special Meeting of August 20, 1997. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE SPECIAL MEETING OF AUGUST 20, 1997 Redevelopment Commission Claims submitted September 5, 1997, for approval. 212 CDBG COMMUNITY DEVELOPMENT Liability Insurance Business Systems Insty -Print Ideal Consolidated Inc. Cole Association American Bar Association Baker & Daniels Baker & Daniels Rink Riverside Printing, Inc. Insty -Print Calendars 324 FUND The Abonmarche Group J.F. New & Associates HS Altman Inc. Peirce & Associates Owners Association at Blackthorn 420 SBCDA GENERAL ACCOUNT Pitts & Associates John R. & Lai -Lo Gould Lawson - Fisher Associates NIPSCO American Electric Power H:\ HOME\ CPHIPPS \WPDATA \COMMSN\090597.MIN -2- $428.58 $19.99 $7.00 $323.90 $2812.50 $255.00 $82.00 $201.48 $26.25 $23.55 $15,550.00 $22,600.00 $16,462.57 $1,037.50 $5,544.75 $2,000.00 $7,000.00 $929.22 $7.63 $6.65 $5.95 South Bend Redevelopment Commission Regular Meeting - September 5, 1997 3. APPROVAL OF CLAIMS (CONT.) 420 SBCDA GENERAL ACCOUNT American Electric Power South Bend Water Works Bean Welding Inc. G. M. W. Berkheimer Co. Inc. Howard Park Hardware Rose Exterminator Company Superior Waste System C & S Service, Inc. Real Estate Management Real Estate Management Real Estate Management Real Estate Management 619 BLACKTHORN Meadowbrook Golf Management, Inc. 414 SOUTHEAST DEVELOPMENT AREA Tyler E. Osler James B. Goodlink and Ellen M. Goodlink James B. Goodlink and Ellen M. Goodlink and KeyBank National Associates Lessie M. Tidwell James B. Goodlink and Ellen M. Goodlink Diamond and Diamond York Title & Escrow Grauvogel & Associates The Troyer Group, Inc. St. Joseph County Treasurer Meridian Title Corp. Meridian Title Corp. Meridian Title Corp. Jerome C. Smith and York Title & Escrow St. Joseph County Treasurer # 1 Hilda Harris and St. Joseph Circuit Court Hilda Harris Hilda Harris and Richard W. Zimmerman York Title & Escrow, Inc H:\ HOME\ CPHIPPS \WPDATA \COMMSN\090597.MIN -3- $841.39 $183.81 $20.00 $3.50 $10.66 $40.00 $65.80 $180.00 $495.30 $553.90 $868.15 $55.80 $6450.00 $1,250.00 $1,250.00 $19,075.90 $5,114.16 $980.00 $513.50 $1,022.00 $160.00 $450.30 $122.34 $100.00 $100.00 $100.00 $22,465.00 $371.56 $1,427.25 $12,538.20 $2,717.00 $50.00 South Bend Redevelopment Commission Regular Meeting - September 5, 1997 3. APPROVAL OF CLAIMS (CONT.) 414 SOUTHEAST DEVELOPMENT AREA American Electric Power Lessie M. Tidwell Lessie M. Tidwell Jerome C. Smith Hilda Harris St. Joseph County Treasurer # 2 American Electric Power Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Commission approved the Claims submitted September 5, 1997 and ordered the checks to be released. Ms. Schwartz abstained on the Real Estate Management Claims. 4. COMMUNICATIONS There were no Communications. Ms. Kolata asked permission to add item 6.n. and 6.o. to the agenda. There were no objections and items 6.n. and 6.o. were added. 5. OLD BUSINESS a. Commission approval requested for Resolution No. 1538 approving an application for real property tax deduction for property located at 804 and 808 W. LaSalle Avenue in the West Washington- Chapin Development Area. (South Bend Heritage Foundation and Zellia and Johnny Crook and Luping and Eric McGinness) Mike Beitzinger stated that this tax abatement request is for a five -year H:\HOME\CPHUPPS\WPDATA\COMMSN\090597.MfN 4- $125.00 $475.00 $475.00 $475.00 $863.40 $136.60 $62.95 COMMISSION APPROVED THE CLAIMS SUBMITTED SEPTEMBER 5, 1997 AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS ADDED ITEMS 6.N. AND 6.0. TO THE AGENDA South Bend Redevelopment Commission Regular Meeting - September 5, 1997 5. OLD BUSINESS (CONT.) a. continued.... residential tax abatement for properties located at 804 and 808 W. LaSalle Avenue. The two homes have already been completed. The homes have standard features with vinyl siding, range, rangehood, garbage disposal, refrigerator and stove. The homes were built to compliment the design of the surrounding homes. Mike Beitzinger stated that the project cost totals approximately $155,000. 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 and the 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. Mike Beitzinger stated that in review of the tax abatement qualifications, stated in his report, South Bend Heritage Foundation has been granted several previous tax abatements and has always been in compliance with all of the previous requirements. Mike Beitzinger noted that these properties are located in the Residential H:\ HOME \CPHEPPS \WPDATA \COMMSN\090597.MIN -5- South Bend Redevelopment Commission Regular Meeting - September 5, 1997 5. OLD BUSINESS (CONT.) a. continued.... Distressed Area —the LaSalle Avenue Chapin Area. The two houses, located at 804 and 808 W. LaSalle Avenue, are located in the West Washington- Chapin Development Area, therefore, this petition first requires the approval of the South Bend Redevelopment Commission. South Bend Heritage Foundation and Zellia and Johnny Crook and Luping and Eric McGinness seek approval under section IC- 6- 1.1- 12.1 -11.3C which allows the City Council to waive certain requirements to submit a statement of benefits prior to initiating a Redevelopment project and under Single - Family Real Property Tax Abatement of the Tax Abatement Ordinance which allows South Bend Heritage Foundation and Zellia and Johnny Crook and Luping and Eric McGinness to receive the five year real property tax abatement. The benefit to Zellia and Johnny Crook and Luping and Eric McGinness is approximately $1,600 per year based on the 1997 tax rates. Each homeowner will be responsible for approximately $600.00 to $700.00 in taxes of the non - abated portion. Mike Beitzinger noted that the taxes abated are capped at $12,000 assessed valuation, and the homeowners are responsible for any amounts over and above that amount. Mike Beitzinger stated that he mailed a memorandum with additional information regarding these two properties to the Redevelopment Commissioners. H:\ HOME\ CPHIPPS \WPDATA \COMMSM090597.MIN -6- South Bend Redevelopment Commission Regular Meeting - September 5, 1997 5. OLD BUSINESS (CONT.) a. continued.... Dea Andrews, representative of South Bend Heritage Foundation; Zellia Crook, owner of 804 W. LaSalle Avenue; and Mike Urbanski, representative of Garden Homes, Inc. all were present at the meeting. Mike Beitzinger stated that Johnny Crook, and Luping and Eric McGinness were unable to attend the meeting. Ms. Schwartz asked if the petition has been amended to include the current property owners as the petitioners as required by law. Mike Beitzinger stated that is correct, and he presented the amended petition to the Commission. Ann Kolata stated that the issue was that the City Council adopted an ordinance establishing the area for new - construction residential tax abatement. Garden Homes, Inc. apparently was under the assumption that the tax abatement was granted by the adopted ordinance when they applied for their building permit. However, there was a legal challenge to the ordinance and it was subsequently repealed. The ordinance was later found to be faulty after construction of the two homes had begun. Apparently, neither Garden Homes, Inc. nor South Bend Heritage Foundation was ever informed that the ordinance was repealed. Ms. Schwartz stated that the subsequent information provided by Mike Beitzinger has clarified a number of questions that were raised at the last meeting regarding H:\ HOME\ CPHIPPS \WPDATA \COMMSN\090597.MIN -7- South Bend Redevelopment Commission Regular Meeting - September 5, 1997 5. OLD BUSINESS (CONT.) a. continued.... the effective date of the ordinance that granted an automatic tax abatement. That ordinance was in effect when the building permit was obtained from the City. She also stated that to her understanding, the building permit was obtained prior to the ordinance later being found to be faulty, so the developers were operating under an ordinance that appeared to be valid at that time. Ms. Schwartz requested that a provision be put in the Resolution that specifically states that this is a unique circumstance. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously approved, the Commission adopted Resolution No. 1538 approving an application for real property tax deduction for property located at 804 and 808 W. LaSalle Avenue in the West Washington- Chapin Development Area. (South Bend Heritage Foundation and Zellia and Johnny Crook and Luping and Eric McGinness) 6. NEW BUSINESS a. Commission approval requested for Resolution No. 1537 approving an application for personal property tax deduction for property located at 3615 W. Voorde Drive in the Airport Economic Development Area. (Capitol Technologies, Inc.) H:V TOME\ CPHIPPS \WPDATA \COMMSN\090597.MIN -8- COMMISSION ADOPTED RESOLUTION NO. 1538 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 804 AND 808 W. LASALLE AVENUE IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA. (SOUTH BEND HERITAGE FOUNDATION AND ZELLIA AND JOHNNY CROOK AND LUPING AND ERIC MCGINNESS) South Bend Redevelopment Commission Regular Meeting - September 5, 1997 6. NEW BUSINESS (CONT.) a. continued.... Mike Beitzinger gave the staff report. Capitol Technologies, Inc. is a manufacturer of special automated industrial machinery along with dies, fixtures, metal forming machines and systems. Their project calls for the purchase and installation of two new 1,600 ton presses. The presses will be used for testing dies for their larger customers and production runs for those customers, if needed. The project continues Capitol Technologies' recognition as a world class machine and tool builder and a truly automated equipment manufacturer. The total cost of the project is estimated at $750,000. Per the petition, it is estimated that this project will create three (3) permanent new jobs representing an annual payroll of $135,000. The project will also maintain one hundred eighty (180) full time and part time jobs representing an annual payroll of $7,560,000. A review of the tax abatement records found that Capitol Technologies, Inc. was previously granted a five year personal property tax abatement and a six year real property tax abatement. Capitol Technologies, Inc. is in compliance with the reporting requirements for the previous abatements. The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed use. H:\HOME\CPHIPPS\WPDATA\COMMSM090597.MfN A \COMMSM090597.MIN -9- South Bend Redevelopment Commission Regular Meeting - September 5, 1997 6. NEW BUSINESS (CONT.) a. continued.... A review of the South Bend Redevelopment Allocation areas finds that the property is located in the Airport Economic Development Area, which is a Tax Incremental Financing Allocation Area, therefore, the petition first requires the approval of the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that Capitol Technologies, Inc. meets the qualifications for a five (5) year personal property tax abatement. Using the estimated project cost of $750,000, personal property taxes generated total approximately $69,719. Taxes abated over five years total approximately $57,356. Taxes still paid with the abatement total approximately $12,363. Upon a motion by Ms. Auburn, seconded by Mr. Faccenda and unanimously carried, the Commission adopted Resolution No. 1537 approving an application for personal property tax deduction for property located at 3615 W. Voorde Drive in the Airport Economic Development Area. (Capitol Technologies, Inc.) b. Staff report on disposition of property in the South Bend Central Development Area. Ms. Kolata stated that this item relates to the Center City Associates' building that is H:\ HOME\ CPHIPPS \WPDATA \COMMSN\090597.MIN -10- COMMISSION ADOPTED RESOLUTION NO. 1537 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3615 W. VOORDE DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (CAPITOL TECHNOLOGIES, INC.) South Bend Redevelopment Commission Regular Meeting - September 5, 1997 6. NEW BUSINESS (CONT.) b. continued.... owned by the Redevelopment Commission and leased to Center City Associates. She stated that a proposal was received from the South Bend Chocolate Company to lease the building for twenty years with two five - year renewable options at $2,500 a year. South Bend Chocolate Company expects to invest approximately $50,000 to renovate the existing first floor office space into a chocolate cafe concept store that they anticipate to occupy sometime in 1998. Ms. Kolata stated that in the second phase, South Bend Chocolate Company expects to invest $100,000 to $200,000 to renovate the north facade and the remainder of the first floor into a small scale retail space. Ms. Kolata stated that in the third phase, the South Bend Chocolate Company expects to renovate the second and third floors into professional office spaces. South Bend Chocolate Company asked that certain conditions be considered and that their bid be conditioned upon certain items. The first is that Center City Associates and South Bend Heritage Foundation be allowed to use Community Development Block Grant funds that have been appropriated for the purpose of renovating the west elevation and the roof of the Center City Associates building. The second issue is that the Park Department and Center City Associates offices be vacated from the building. The third issue H:\ HOME \CPHH'PS \WPDATA \COMMSM090597.MIN -11- South Bend Redevelopment Commission Regular Meeting - September 5, 1997 6. NEW BUSINESS (CONT.) b. continued.... is that the Commission grant the tenant the right to develop additional spaces on the first and second floors. The fourth issue is that the South Bend Chocolate Company receive a purchase offer opportunity based on the current appraised value of the building "as is ". The final issue is that the South Bend Chocolate Company be granted an easement of approximately fifteen feet in depth running along the entire north facade of the building. Ms. Kolata stated that South Bend Chocolate Company would like to start their project with an intent to lease as soon as possible. South Bend Chocolate Company intends to develop a small, upscale Main Street row of shops facing the College Football Hall of Fame. They propose to rename the building "The Gridiron Row," building upon the Hall of Fame's tourist traffic. The building will be marketed to other similar small -scale specialty retailors. Ms. Kolata stated that she met with Mark Tamer of South Bend Chocolate and Bernie Kish of the College Football Hall of Fame concerning the proposed easement. Mr. Kish stated that he was in favor of the project and had no problem with the requested easement. Ms. Kolata stated that there are a couple of issues that need to be addressed. First, South Bend Chocolate Company must H:\ HOME\ CPHIPPS \WPDATA \COMMSM090597.MIN -12- South Bend Redevelopment Commission Regular Meeting - September 5, 1997 6. NEW BUSINESS (CONT.) b. continued.... provide the Commission with a Performance Guarantee and must provide a timeline for the project. The second issue is that the project may be undertaken by a partnership instead of the South Bend Chocolate Company and that needs to be clarified. Ms. Kolata stated that a proposal was received from Center City Associates a couple of years ago for development of the building but the Commission never acted on the proposal. The staff recommends rejecting Center City Associates' proposal so that the Commission can act on the current proposal. Ms. Kolata stated that Mark Tamer requested a fifteen foot easement but she recommends increasing it to a twenty foot easement to allow the building to have storefront windows on the north side of the building. She noted that there are some building code requirements related to the type of glass used within 20' of a property line. Increasing the easement to 20' would eliminate the need for special fire related glass. Ms. Kolata stated that the staff recommends accepting the proposal from South Bend Chocolate Company, subject to them addressing the issues of the timeline, the official name of the developer and having the developer provide the $10,000 Performance Guarantee. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\090597.MIN -13- South Bend Redevelopment Commission Regular Meeting - September 5, 1997 6. NEW BUSINESS (CONT.) b. continued.... Mark Tamer and Jay Harwood, owners of South Bend Chocolate Company, were present at the meeting. Mark Tamer stated that South Bend Heritage Foundation is the acting project manager. He also noted that bids have been collected for the project. South Bend Heritage Foundation has met with Center City Associates and Center City Associates has given the go ahead to spend the $117,000 Community Development Block Grant funds on the roof and north facade. Mark Tamer stated that the South Bend Chocolate Company would like to bid out the north facade that faces the Hall of Fame to have it restored. He also stated that the South Bend Chocolate Company would like bid out the second and third floor office spaces for rehabbing and leasing purposes. Mark Tamer stated that if Center City Associates and South Bend Heritage Foundation decide to pay to have the roof fixed and the north facade restored, the South Bend Chocolate Company will then move a store into the front of the building to act as an anchor to attract other retail tenants. Mark Tamer stated that because retail business can be difficult, they will have to market this project carefully. The South Bend Chocolate Company will look for local retailers as possible tenants and H:\ HOME\ CPHIPPS \WPDATA \COMMSM090597.MIN -14- South Bend Redevelopment Commission Regular Meeting - September 5, 1997 6. NEW BUSINESS (CONT.) b. continued.... market themselves toward tourists and business people. Mark Tamer anticipates that the possible retail tenants will appeal to having their businesses open to customers during evening hours. Mark Tamer stated that the South Bend Chocolate Company opened two stores on the Indiana Toll Road that are doing very well. He also stated that they're remodeling their store on Sample Street to acommodate tour buses. Mark Tamer stated that he and Jay Harwood are very confident of their project. Ms. Kolata asked Mark Tamer what his timeline is. Mr. Tarner stated that his timeline depends upon South Bend Heritage Foundation, but he anticipates that the South Bend Chocolate Company will be open for business in either January or May of 1998. Mr. Hunt asked how much square footage will be used for his store. Mark Tamer stated between 1,000 s.f. and 1,800 s.f., depending upon the layout of the store. Mr. Hunt asked what the square footage is for each of the floors in the building. Mark Tamer stated that there's approximately 3,600 s.f. on the first floor, 4,000 s.f. on the second floor, and approximately 2,400 s.f. on the third floor for a total of 10,000 s.f. in the building. Ms. Kolata asked Amy Tweeten if Center H:\ HOME\ CPHIPPS \WPDATA \COMMSN\090597.MIN -15- South Bend Redevelopment Commission Regular Meeting - September 5, 1997 6. NEW BUSINESS (CONT.) b. continued.... City Associates approved going ahead with the Community Development Block Grant contract. Amy Tweeten stated that Center City Associates did approve going ahead with the project contingent upon approval of Mark Tamer's project by the Redevelopment Commission. Ms. Kolata stated that Center City Associates applied for financing from the City in 1997 to restore the west facade and the roof of the building. The funds were included in the 1997 Community Development Block Grant budget so that Center City Associates could have the work completed. Center City Associates and South Bend Heritage Foundation were working together on that project. Earlier this year, Center City Associates decided it would not move forward with the contract if the building wasn't viable. Since then, we have received the proposal from Mark Tamer and it seems the project is viable. Ms. Kolata asked Amy Tweeten if the $117,000 contract amount to fix the roof and restore the north facade was correct. Ms. Kolata stated that to her knowledge the Community Development Block Grant contract was for $100,000 to restore the west facade and to fix the roof. Amy Tweeten stated that the $117,000 includes $7000 from the Revolving Loan Fund. She also stated that the bids have come in and the contractors can do the work for $117,000. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\090597.MQQ -16- South Bend Redevelopment Commission Regular Meeting - September 5, 1997 6. NEW BUSINESS (CONT.) b. continued.... Ms. Schwartz asked Dea Andrews where South Bend Heritage Foundation fits in the equation. Dea Andrews stated that they will be the project manager for Center City Associates if they should go ahead with Phase I of the project. She also stated that Mark Tamer requested that South Bend Heritage Foundation act as project manager for South Bend Chocoloate Company's proj ect. Dea Andrews stated that South Bend Heritage Foundation has all the bids that came in this week. Monday or Tuesday of next week Joe Fragmeni will discuss the restoration of the north facade and the rehabilitation of the first floor with Pat Pinnick and Jeff Gibney who will then meet with Mark Tamer to finalize the details of rehabbing the buiding. Mark Tamer stated that South Bend Heritage Foundation was picked because they are very experienced in rehabbing properties. Ms. Kolata stated that the Commission will request that the Development Agreement require South Bend Chocolate Company to develop the first floor and the north facade in Phase I of the project. The staff recommends that once Phase I is completed, the South Bend Chocolate Company receive a Certificate of Completion for their project. She also noted that development of the second and third floor would be nice, and hopefully will occur, but that would not be a requirement. H:\HOME\CPHIPPS\WPDATA\COMMSN\090597.MIN -17- South Bend Redevelopment Commission Regular Meeting - September 5, 1997 6. NEW BUSINESS (CONT.) b. continued.... Ms. Kolata stated that the Commission's concern is the first floor retail space and the exterior appearance of the building. If those two issues are addressed, the staff would recommend that a provision be put in the Development Agreement that would allow the South Bend Chocolate Company to develop the second and third floors of the building but not make it a requirement. Mr. Hunt asked if the Commission can comply with the South Bend Chocolate Company's "Item Four Condition" listed in their proposal without holding a public hearing. Ms. Kolata stated that the Commission will have to go through the public disposition process before the Commission could allow someone to purchase the Center City Associates building. If the building were put up for bid for disposition, any potential bidder would need to purchase the building subject to existing leases. This would include the proposed 20 year lease for South Bend Chocolate. Mark Tamer and South Bend Heritage Foundation have requested that somewhere in the Lease Agreement there is an acknowledgement that the Commission's current "as is" value of the property is $43,000 to $45,000 based on the current appraisals. Ms. Schwartz asked if the property has previously been offered publicly for lease. Ms. Kolata stated that it had. Ms. Schwartz asked if the terms of the lease include all H:\ HOME\ CPHIPPS \WPDATA \COMMSM090597.MIN -18- South Bend Redevelopment Commission Regular Meeting - September 5, 1997 6. NEW BUSINESS (CONT.) b. continued.... expenses, including taxes, insurance, tenant finishes, and any rehabilitation of the building be borne by the lessee. Ms. Kolata stated that is correct subject to the conditions requested by the South Bend Chocolate Company. Ms. Schwartz asked if there's any problem or difficulty with the terms of the financing for the Hall of Fame in granting an easement. Ms. Kolata stated that she doesn't believe there's a problem. She also noted that the Hall of Fame property is owned by the Redevelopment Authority and leased to the Redevelopment Commission. Ms. Kolata stated that she will find out if there are any conflicts with the financing. Ms. Schwartz asked if Center City Associates has a problem with vacating the building. Ms. Kolata stated that Center City Associates is in full support of the project and has begun looking for alternate space. Ms. Auburn asked if someone inspected the building to determine if it is structurally sound. Mark Tamer stated that South Bend Heritage Foundation recently had an Open House at the building and it appears to be structurally sound. Ms. Schwartz asked if the Commission will need to approve any structural changes that the South Bend Chocolate Company might make to the building. Ms. Kolata stated that is correct. Upon a motion by Mr. Donoho, seconded by Ms. Auburn and carried, the Commission H:\ HOME\CPHIPPS \WPDATA \COMMSM090597.MIN -19- South Bend Redevelopment Commission Regular Meeting - September 5, 1997 6. NEW BUSINESS (CONT.) b. continued.... approved the rejection of the Center City Associates' proposal for lease of the Center City Associates building that was submitted in 1995. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and carried, the Commission accepted the proposal from South Bend Chocolate Company for lease of the building at 122 S. Michigan, subject to receiving the Performance Guarantee, information on the partnership and developing a suitable timeline for the project. Mr. Faccenda abstained. c. Commission approval requested for proposal from Grauvogel & Associates for ACM Survey and Abatement Cost Estimates for the Morris Performing Arts Center. Ms. Kolata stated that Larry Grauvogel has done several asbestos samplings for the Commission in the past. Mr. Grauvogel will do the ACM Survey and Abatement Cost Estimates for the Morris Auditorium and the Royale Palais for an amount of $1,290 which includes a reimburseble amount of $100.00. Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda and unanimously carried, the Commission approved the proposal from Grauvogel & Associates for ACM Survey and Abatement Cost Estimates for the Morris Performing Arts Center. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\090597.MIN -20- COMMISSION ACCEPTED THE PROPOSAL FROM SOUTH BEND CHOCOLATE COMPANY FOR LEASE OF THE BUILDING AT 122 S. MICHIGAN, SUBJECT TO RECEIVING THE PERFORMANCE GUARANTEE, INFORMATION ON THE PARTNERSHIP AND DEVELOPING A SUITABLE TIMELINE FOR THE PROJECT. MR. FACCENDA ABSTAINED COMMISSION APPROVED THE PROPOSAL FROM GRAUVOGEL & ASSOCIATES FOR ACM SURVEY AND ABATEMENT COST ESTIMATES FOR THE MORRIS PERFORMING ARTS CENTER South Bend Redevelopment Commission Regular Meeting - September 5, 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 1014 N. Eddy. (Norman L. & Deborah G. Buckman) Ms. Kolata stated that this Certificate of Waiver forgives $789.00 as of August 30, 1997. Upon a motion by Ms. Auburn, 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 1014 N. Eddy. (Norman L. & Deborah G. Buckman) e. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 1526 S. Webster. (Daniel Kois) Ms. Kolata stated that this Certificate of Waiver forgives $850.00 as of February 21, 1997. Upon a motion by Ms. Auburn, 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 1526 S. Webster. (Daniel Kois) f. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for H:\ HOME\ CPHIPPS \WPDATA \COMMSN\090597.MIN -21- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 1014 N. EDDY. (NORMAN L. & DEBORAH G. BUCKMAN) COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 1526 S. WEBSTER. (DANIEL KOIS) South Bend Redevelopment Commission Regular Meeting - September 5, 1997 6. NEW BUSINESS (CONT.) f. continued.... property located at 511 N. Blaine. (Housing Development Corporation) Ms. Kolata stated that this Certificate of Waiver forgives $870.00 as of July 28, 1997. Upon a motion by Ms. Auburn, 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 511 N. Blaine. (Housing Development Corporation) g. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 422 N. College. (Housing Development Corporation) Ms. Kolata stated that this Certificate of Waiver forgives $2,600 as of March 4, 1997. Upon a motion by Ms. Auburn, 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 422 N. College. (Housing Development Corporation) h. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 1003 N. Sherman. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\090597.MIN -22- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 511 N. BLAINE (HOUSING DEVELOPMENT CORPORATION) COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 422 N. COLLEGE. (HOUSING DEVELOPMENT CORPORATION) South Bend Redevelopment Commission Regular Meeting - September 5, 1997 6. NEW BUSINESS (CONT.) h. continued.... (Thomas & Michelle Brademas) Ms. Kolata stated that this Certificate of Waiver forgives $1,259 as of January 4, 1997. Upon a motion by Ms. Auburn, 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 1003 N. Sherman. (Thomas & Michelle Brademas) i. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 236 E. Fox. (Northern Oak Homes) Ms. Kolata stated that this Certificate of Waiver forgives $750.00 as of May 30, 1997. Upon a motion by Ms. Auburn, 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 236 E. Fox. (Northern Oak Homes) j. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 528 N. Blaine. (Northern Oak Homes) H:\ HOME\ CPHIPPS \WPDATA \COMMSM090597.MIN -23- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 1003 N. SHERMAN. (THOMAS & MICHELLE BRADEMAS) COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 236 E. FOX. (NORTHERN OAK HOMES) South Bend Redevelopment Commission Regular Meeting - September 5, 1997 6. NEW BUSINESS (CONT.) j. continued.... Ms. Kolata stated that this Certificate of Waiver forgives $850.00 as of July 15, 1997. Upon a motion by Ms. Auburn, 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 528 N. Blaine. (Northern Oak Homes) k. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 413 S. Jackson. (Joseph McHatton) Ms. Kolata stated that this Certificate of Waiver forgives $2,250 as of June 24, 1996 and 1997. Upon a motion by Ms. Auburn, 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 413 S. Jackson. (Joseph McHatton) 1. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 520 N. Notre Dame. (R. Steven Gay) Ms. Kolata stated that this Certificate of Waiver forgives $1,500 as of February H:\ HOME\ CPHIPPS \WPDATA \COMMSN\090597.MIN -24- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 528 N. BLAINE. (NORTHERN OAK HOMES) COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 413 S. JACKSON. (JOSEPH MCHATTON) South Bend Redevelopment Commission Regular Meeting - September 5, 1997 6. NEW BUSINESS (CONT.) 1. continued.... 26, 1997. Upon a motion by Ms. Auburn, 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 520 N. Notre Dame. (R. Steven Gay) m. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 515 N. Harrison. (Ellis Howell) Ms. Kolata stated that this Certificate of Waiver forgives $670.50 as of April 1, 1997. Upon a motion by Ms. Auburn, 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 515 N. Harrison. (Ellis Howell) n. Commission approval requested for Lease Proposal from Office Interiors for space in the Palais Royale Building located in the South Bend Central Development Area. Ms. Kolata stated that Office Interiors, Inc. had an option period that began in October 1996. They had, at that time, a three -year option but Office Interiors asked to extend H:\ HOME\ CPHIPPS \WPDATA \COMMSN\090597.MfN -25- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 520 N. NOTRE DAME. (R. STEVEN GAY) COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 515 N. HARRISON. (ELLIS HOWELL) South Bend Redevelopment Commission Regular Meeting - September 5, 1997 6. NEW BUSINESS (CONT.) n. continued.... for only two years which takes them to October 11, 1998. The Commission approved this two -year option last October. They are now requesting that they be given another three -year option period. Ms. Kolata recommended giving Office Interiors an additional two -year option instead of a three -year option. This would cover the period from October 1998 through October 2000 with a ten percent increase in the rent. Upon a motion by Ms. Auburn, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Lease Proposal from Office Interiors, Inc. for a two -year option in the Palais Royale, subject to the terms listed in the Lease Proposal. Ms. Schwartz abstained. o. Commission approval requested for a Reversionary Interest document for Dennis Reiner. Ms. Kolata stated that the Commission previously sold land to Dennis Reiner, owner and developer of Midwest Machine Products. Mr. Reiner is scheduled to close a small- business - administration loan on Monday and he is anxious to clear up the title to the property he purchased from the Commission. Although he received a Certificate of Completion for the project, the title company would like the Commission to execute the Reversionary Interest document. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\090597.MIN -26- COMMISSION APPROVED THE LEASE PROPOSAL FROM OFFICE INTERIORS, INC. FOR A TWO -YEAR OPTION IN THE PALAIS ROYALE SUBJECT TO THE TERMS LISTED IN THE LEASE PROPOSAL MS. SCHWARTZ ABSTAINED South Bend Redevelopment Commission Regular Meeting - September 5, 1997 6. NEW BUSINESS (CONT.) o. continued.... Anne Bruneel stated that the Commission's Reversionary Interest is based on the Development Agreement. The Development Agreement is still showing on the title work even though the Certificate of Completion was recorded in January 1997. In an effort to make sure the closing goes forward on Monday, Dennis Reiner requested that the Commission sign the Reversionary Interest document. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Reversionary Interest document for Dennis Reiner. 7. PROGRESS REPORTS Ms. Kolata stated that the Center City Associates building issue has been dealt with and the new proposed project will be a good addition to the downtown area. She also stated that the main contract for construction of the Parking Garage is out for bid and bids are due on September 25, 1997. 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is scheduled for September 19, 1997 at 10:00 a.m. H:\ HOME\ CPHIPPS \WPDATA \COMMSM090597.MIN -27- COMMISSION APPROVED THE REVERSIONARY INTEREST FOR DENNIS REINER South Bend Redevelopment Commission Regular Meeting - September 5, 1997 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Ms. Schwartz made a motion that the meeting be adjourned. Mr. Donoho seconded the motion and the meets adjourned at 10:55 a.m. Robert W. Hunt, President ADJOURNMENT Ann E. Kolata, Director H:\ HOME \CPHIPPS\ WPDATA \COMMSN\090597.MIN -28-