HomeMy WebLinkAboutRM 10-17-97SOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
October 17, 1997 1308 County -City Building
10:00 P.M. 227 West Jefferson Boulevard
Presiding: Robert W. Hunt, President South Bend, Indiana
1. ROLL CALL
Members Present: Mr. Robert W. Hunt, President
Mr. Michael Donoho, Vice - President
Ms. Paula N. Auburn, Secretary
Members Absent: Mr. Phil J. Faccenda
Ms. Eugenia Schwartz
Legal Counsel: Ms. Anne E. Bruneel
Redevelopment Staff: Mrs. Ann E. Kolata, Director
Mrs. Vangelean Urbanski, Recording Secretary
Mr. James Riggs, Economic Development Specialist
Ms. Amy Tweeten, Economic Development Specialist
Ms. Joanna Smith, Economic Development Specialist
Mrs. Cheryl Phipps, Administrative Assistant
Business Assistance: Mr. Michael Beitzinger, Economic Development Specialist
Ms. Nancy VanScoyk, Economic Development Specialist
Others: Ms. Dea Andrews, South Bend Heritage Foundation
Mr. Tom Ford, Value Plus Construction, Inc.
Mr. Robert Prine, Apollo Precision Machining, Inc.
Ms. Kathy Canedy, Housing Assistance Office
Mr. John Peddycord, Attorney
Mr. Hunt noted that the Executive Session will continue immediately following adjournment of the Regular
Meeting.
2. APPROVAL OF MINUTES
a. Commission approval of the Minutes of
the Regular Meeting of October 3, 1997.
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South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
2. APPROVAL OF MINUTES (CONT.)
Upon a motion by Ms. Auburn, seconded
by Mr. Donoho and unanimously carried,
the Commission approved the Minutes of
the Regular Meeting of October 3, 1997.
3. APPROVAL OF CLAIMS
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COMMISSION APPROVED THE MINUTES OF THE
REGULAR MEETING OF OCTOBER 3, 1997
Redevelopment Commission Claims submitted October 17, 1997, for ratification and approval.
ADMIN. 1997 (212
Liability Expense
$428.59
Tri- County News, Inc.
$14.07
Disaster Services, Inc.
$170.40
360 Communication
$73.50
South Bend Tribune
$13.73
Insty- Prints
$157.50
Insty- Prints
$14.00
Insulco Asbestos Management, Inc.
$2,230.00
Gene's Camera Store, Inc.
$9.90
Business Systems
$22.64
South Bend Water Works
$13.74
Ameritech
$26.28
AIRPORT TIF REVENUE (324
Appraisal Group, Inc.
$1,500.00
Owner's Association at Blackthorn, Inc.
$6,192.00
Landscapes Unlimited
$2,600.00
Cole Associates, Inc.
$4,225.01
Rieth -Riley Construction, Inc.
$7,106.76
Ken Herceg & Associates, Inc.
$1,995.00
J. F. New & Associates
$600.00
Park Farms
$4,000.00
SAMPLE - EWING DEVELOPMENT AREA (414
Kaser- Spraker Construction, Inc.
$66,735.00
Lang Feeney & Associates, Inc.
$1,000.00
Tyler E. Osler & Meridian Title Corporation
$15,719.00
R. E. Pitts & Associates, Inc.
$2,000.00
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South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
3. APPROVAL OF CLAIMS (CONT.)
SAMPLE - EWING DEVELOPMENT AREA (414)
Emery M. Horvath #2
Emery M. Horvath #I
St. Joseph County Treasurer
St. Joseph County Treasurer
Russell F. Sosnoski and Mary Degaugh
Russell F. Sosnoski and Mary Degaugh and
Sosbieski Federal Savings and Loan
S.B.C.D.A. T.I.F. GENERAL ACCOUNT (420)
Lang Feeney & Associates, Inc.
Real Estate Management Corporation
Real Estate Management Corporation
Real Estate Management Corporation
Real Estate Management Corporation
Femco, Inc.
Boiler & Pressure Vessel Division
Rose Exterminator
American Electric Power
Northern Indiana Public Service Company
South Bend Water Works
Superior Waste Systems
R. E. Pitts & Associates, Inc.
R. E. Pitts & Associates, Inc.
BLACKTHORN GOLF COURSE (619)
Meadowbrook Golf Management, Inc.
Upon a motion by Mr. Donoho, seconded by
Ms. Auburn and unanimously carried, the
Commission ratified and approved the Claims
submitted October 17, 1997, and ordered the
checks to be released.
4. COMMUNICATIONS
There were no Communications.
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$9,000.00
$52,500.00
$445.44
$571.56
$49,687.33
$7,312.67
$800.00
$575.72
$491.20
$641.75
$389.13
$26.00
$12.00
$40.00
$795.36
$8.73
$288.46
$65.80
$2,000.00
$3,500.00
$6,450.00
COMMISSION RATIFIED AND APPROVED THE
CLAIMS SUBMITTED OCTOBER 17, 1997, AND
ORDERED THE CHECKS TO BE RELEASED
THERE WERE NO COMMUNICATIONS
South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
Mrs. Kolata asked permission to add two
items to the agenda. There were no objections
and items 6.m. and 6.n. were added to the
agenda.
5. OLD BUSINESS
a. Commission approval requested for
Resolution No. 1542 approving an
application for real property tax
deduction for property located at 2520
W. Calvert Street in the Sample -Ewing
Development Area. (Value Plus
Construction for the benefit of Beverly
J. King)
Mike Beitzinger gave the staff report. He
stated that this tax abatement request is for a
home that has already been completed.
Value Plus Construction started their project
in April 1997 under the assumption that tax
abatement was already granted for the
property through the passage of last year's
ordinance, which established several new
residential tax abatement areas (including
the area around 2520 W. Calvert Street,
known as the Rum Village - Calvert RDA A-
14 area). The ordinance basically allowed
builders to build homes and automatically
receive the abatement. Unbeknownst to
Value Plus Construction, the ordinance was
repealed through another ordinance on
October 28, 1996. The new ordinance kept
the newly established residential tax
abatement area, but required the individual
consideration for each lot within an area for
tax abatement. Value Plus Construction was
never aware of this change and continued to
complete the home at 2520 W. Calvert in
July 1997 and sold the home
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ITEMS 6.M. AND 6.N. WERE ADDED TO THE
AGENDA
r.�
South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
5. OLD BUSINESS (CONT.)
a. continued....
that same month under the assumption that
the property had already been granted
abatement.
These extenuating circumstances are the
basis for Value Plus Construction requesting
residential tax abatement, on behalf of the
homeowner, for the home that has already
been completed at 2520 W. Calvert Street.
Value Plus is now aware of the filing
requirements and is seeking the abatement
on behalf of the homeowner. The property
owner has signed the original petition and
the staff report is attached, providing
additional information concerning the
project.
Mike Beitzinger stated that the home is
approximately 1,080 square feet, with vinyl
siding, three bedrooms, fully insulated
basement and attached 1 car garage. The
home also has an energy efficient furnace,
complete floor coverings, a concrete patio,
driveway and sidewalks, and a completely
seeded yard. The actual cost for the new
home was $67,200.
Value Plus Construction has completed 15
homes and has 3 under construction, all of
which have utilized the City's tax abatement
program and subsidies offered by the
Housing Assistance Office of up to $12,500,
making the homes affordable to low and
moderate income families.
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South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
5. OLD BUSINESS (CONT.)
a. continued....
A review of the tax abatement records finds
that Value Plus Construction, Inc., has been
granted several previous five -year residential
real property tax abatements. Value Plus
Construction is in compliance with the
reporting requirements for the previous
abatements.
A review of the tax abatement maps finds
that the lots are located in the 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
Incremental Financing Allocation Area;
therefore, the petition first requires the
approval of the South Bend Redevelopment
Commission. The project meets the
qualifications for five years of real property
tax abatement.
Using the project cost of $67,200, the taxes
generated total approximately $1,976.50, for
each of the five years. Taxes abated total
approximately $1,602.57, for each of the
five years. Taxes still paid total
approximately $373.93, for each of the five
years.
Tom Ford, owner of Value Plus
Construction, Inc. and his attorney, John
Peddycord, both were present at the meeting.
Mr. Peddycord stated that Tom Ford had
been operating under the old ordinance which
designated an area eligible for an automatic
tax abatement. Mr. Peddycord stated that
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South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
5. OLD BUSINESS (CONT.)
a. continued....
Tom Ford had been working from maps
furnished to him by the City of South Bend
Department of Community and Economic
Development and the Division of Planning.
Mr. Peddycord stated that Tom Ford received
a map, in the mail, which was substantially
similar to other maps he had received in the
past from the Department of Community and
Economic Development and the Division of
Planning. The most recent map he received
showed that the area, which included 2520
W. Calvert, was considered a Residential
Distressed Area under the original automatic
tax abatement ordinance.
Mr. Peddycord stated that when Tom Ford
received the map, which he assumed was
similar to other maps he had received in the
past, he started construction of the home
located at 2520 W. Calvert in April 1997.
Tom Ford, assuming the homeowner would
receive the automatic tax abatement, sold the
home to Beverly J. King in July 1997
promising tax abatement as an incentive. If
the Commission does not grant tax
abatement, Mr. Ford will feel ethically bound
to pay the taxes on the property for the 5
years.
Mr. Peddycord stated that Beverly J. King is
a nurse's aid and was unable to attend today's
meeting. He also stated that Ms. King is a
qualified buyer under the Housing Assistance
program for the benefit of low- income
families.
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South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
5. OLD BUSINESS (CONT.)
a. continued....
Mr. Hunt asked if the City gives notification
that an ordinance has been repealed; if so,
what type of notification? Mike Beitzinger
stated that the City Clerk's office is required
to publish notification of a repealed
ordinance in the local newspapers. Anne
Bruneel stated that one ordinance is repealed
by enacting another ordinance. Notification
of the repealed ordinance is published in title
in the local newspapers, and then a public
hearing is held in the course of the Common
Council acting on the repealed ordinance.
Mrs. Kolata stated that she believes there was
an article in the local newspaper stating that
the ordinance had been repealed. She also
stated that Larry Magliozzi and Mike
Beitzinger had worked with Tom Ford and a
number of other home builders to draft the
original (repealed) ordinance. She doesn't
know if Larry Magliozzi had any
correspondence with the home builders,
informing them of the repealed ordinance.
Mr. Peddycord stated that Tom Ford did not
receive any type of correspondence informing
him of the repealed ordinance.
Tom Ford stated that he is very familiar with
the existing procedures of filing for tax
abatement consideration and would have
used those procedures if he had realized that
those procedures were operatative at that
time.
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South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
5. OLD BUSINESS (CONT.)
a. continued....
Ann Kolata stated that the original ordinance
defined a number of areas for automatic tax
abatement. When the original ordinance was
repealed by the new ordinance, the areas
included in the new ordinance were
substantially smaller in numbers than the
areas original ordinance encompassed.
Mr. Donoho asked Mr. Beitzinger what the
intent of the original residential tax
abatement ordinance was. Mr. Beitzinger
stated that the intent of the original ordinance
was to try to try to expand the tax abatement
program to encourage new residential
development in the city.
Mike Beitzinger stated that Tom Ford and his
partner at that time, Barry Adams, came to
him and inquired about the possibility of
offering tax abatement for new housing
construction.
Mike Beitzinger stated that the Residential
Tax Abatement program tried to give some
kind of incentive to home builders so they
would continue building within the city.
Mike Beitzinger stated that the tax abatement
program is limited to $12,000 of assessed
valuation.
Ms. Auburn asked Tom Ford if he had any
more houses that are affected by the repealed
ordinance. Tom Ford stated that he doesn't
have any more houses that are affected by the
repealed ordinance.
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South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
5. OLD BUSINESS (CONT.)
a. continued....
Ms. Auburn asked Mike Beitzinger if he
knows of any other home builders that might
have houses that have been affected by the
repealed ordinance. Mike Beitzinger stated
that he has requested this information from
the Building Department but has yet to
receive it.
Mr. Peddycord stated that in South Bend
Heritage Foundation's appeal for special
consideration, the distinguishment was that
they had obtained their building permit
before the old ordinance was repealed and the
new ordinance was adopted. Mrs. Kolata
stated South Bend Heritage Foundation's
case was one with extenuating circumstances
that the Commission considered when they
approved the tax abatement for the piece of
property that fell under the old ordinance.
Mrs. Kolata stated that with regards to Tom
Ford's project, the building permit came six
to eight months after the old ordinance was
repealed.
Mr. Peddycord asked Ann Kolata if she knew
how many years tax abatement has been in
existence. Mrs. Kolata stated that the tax
abatement program has been in existence for
approximately 20 years, but the Residential
Tax Abatement program has been in
existence for approximately five years.
Mr. Peddycord stated that the Act which
permits the Commission to waive tax
abatement non - compliances was adopted by
the 1995 legislature.
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South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
5. OLD BUSINESS (CONT.)
a. continued....
Mrs. Kolata stated that to her understanding,
the Act was put into the legislation because
some people who had applied for tax
abatement consideration did not meet some
of the filing requirements.
Ms. Auburn requested that Mr. Beitzinger
request, again, from the Building Department
information of any other properties that might
have been affected by the old ordinance.
Mrs. Kolata asked permission to table item
5.a. until the next meeting. There were no
objections and item 5.a. was tabled.
6. NEW BUSINESS
a. Public Hearing on Resolution No. 1540, a
supplemental appropriation resolution of
the City of South Bend Redevelopment
Commission.
Mrs. Kolata asked that the following items be
entered into the record: Affidavits from the
Tri- County News and South Bend Tribune
that the Notice of Public Hearing was
published in those newspapers on September
26, 1997.
Mrs. Kolata stated that this resolution
appropriates $106,400 from Fund 433, which
is the Redevelopment General Fund. She
also stated that in this particular
appropriation, the money has two uses:
$80,851 will be used for local public
improvements in the South Bend Central
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South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
6. NEW BUSINESS (CONT.)
a. continued....
Development Area and $25,549 will be
appropriated into Fund 310, which is the
Fund that pays the Studebaker Bond Debt
Service.
When the Studebaker Bond was refinanced,
money was deposited in Fund 433. Those
costs have been paid and the remaining
$25,549 needs to be used for debt service.
Mr. Hunt opened the Public Hearing for
anyone who wished to speak regarding
Resolution No. 1540. There was no one who
wished to speak regarding Resolution No.
1540. Mr. Hunt closed the Public Hearing
for whatever action the Commission wished
to take.
b. Commission approval requested for
Resolution No. 1540.
Upon a motion by Ms. Auburn, seconded by
Mr. Donoho and unanimously carried, the
Commission adopted Resolution No. 1540, a
supplemental appropriation resolution of the
City of South Bend Redevelopment
Commission.
c. Commission approval requested for
Resolution No. 1543 approving an
application for real property tax deduction
for property located in the 1200 Block of
West Colfax Avenue and the 100 Block of
Spruce Street in the West Washington -
Chapin Development Area. (South Bend
Heritage Foundation)
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COMMISSION ADOPTED RESOLUTION NO. 1540,
A SUPPLEMENTAL APPROPRIATION
RESOLUTION OF THE CITY OF SOUTH BEND
REDEVELOPMENT COMMISSION
South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
6. NEW BUSINESS (CONT.)
c. continued....
Mike Beitzinger gave the staff report.
South Bend Heritage Foundation, in
conjunction with Logan Inc., is proposing to
build and manage six duplexes (a total of
twelve units) on Spruce Street south of West
Colfax Avenue. Three of the duplexes will
face to the east side of Spruce Street, while
the other three duplexes will face to the west
of Spruce street. This site was selected
because of its proximity to stable
neighborhoods, its closeness to public
transportation, and availability of vacant
land. The duplexes will be two story with
one unit downstairs and one unit upstairs.
Three of the duplexes (six units) will have
three bedrooms and the other three duplexes
(six units) will have two bedrooms — serving
30 adults. Each unit will be fully equipped
with a stove, dishwasher, refrigerator and
garbage disposal. Other furnishings will be
the responsibility of the tenants. The total
estimated cost of the buildings is $1,260,000.
In support of this petition for tax abatement,
South Bend Heritage Foundation notes that
there is a need in our community to provide
alternative living opportunities for low
income, developmentally disabled adults,
particularly those who live at home with
aging parents. South Bend Heritage
Foundation would develop and own the six
duplexes and manage the property after
completion of the project. Logan, Inc. will
refer their clients, who are capable of semi -
independent living, to lease space in each
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South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
6. NEW BUSINESS (CONT.)
c. continued....
unit. Logan, Inc. would also provide ongoing
support (ranging from occasional to constant)
for each tenant to maintain the level of
independence he or she is capable of.
Depending on the number of bedrooms each
unit has, two or three people will live in each
unit (with only one person per bedroom).
The tenants would be drawn from Logan's
list of individuals either enrolled in their
current semi - dependent and supported living
programs or from their growing list of
persons qualified and waiting to move into a
residential option. Many of these potential
tenants are able to live semi - independent
lives; they have jobs either in sheltered
workshops or at local service providing
businesses and they currently live at home
(adult children of aging parents) or in group
homes (where eight to ten people live
together, sharing rooms under constant
supportive supervision) or they live in
nursing homes because there is no other place
for them to go. Some of the potential tenants
will need more supervision and support and
may have live -in assistance.
Both South Bend Heritage and Logan, Inc.
have a history of honoring their commitment
to maintaining good affordable housing and
excellent services to their tenants and clients.
The Logan Center Housing Project will
receive the full force of this commitment.
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South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
6. NEW BUSINESS (CONT.)
c. continued....
Per the petition, it is estimated that this
project will create four (4) new jobs,
representing a new annual payroll of $71,500
and will maintain two (2) existing permanent
full -time jobs and no part-time jobs
representing an annual payroll of $65,000.
A review of the tax abatement records finds
that South Bend Heritage has been associated
with several previous tax abatements and are
in compliance on reporting for these
abatements.
The building commissioner has reviewed the
Aft petition and finds the property to be properly
zoned for the proposed use. A review of the
tax abatement maps finds that the property is
located in an area presently designated as a
Tax Abatement Impact Area and the property
is also located in the Economic Development
Target Area, the latter of which is a
requirement for consideration of the
abatement. 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 petition first requires the
approval of the South Bend Redevelopment
Commission.
South Bend Heritage Foundation is
requesting a ten (10) year real property tax
abatement, and although South Bend
Heritage's project falls within the designated
area and South Bend Heritage is guaranteeing
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South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
6. NEW BUSINESS (CONT.)
c. continued....
that more than 20 percent of the housing units
will be made available to low - income
individuals, the project does not meet the
required $4 million in hard dollar costs for
the requested ten (10) year abatement. South
Bend Heritage feels that the project should be
considered for the 10 year abatement because
of the following: first, there is a need in our
community to provide alternative living
opportunities for developmentally disabled
adults; second, 100 percent of the project will
be targeted to low- income individuals, far
exceeding the 20 percent minimum
requirement; third, the project will provide
semi - independent living opportunities to
individuals who are currently living with
aging parents, in group homes or in nursing
homes. Additionally, South Bend Heritage
has noted that the project is an important
continuation of South Bend Heritage
Foundation's mission to stabilize and
revitalize inner -city, low- income
neighborhoods and to provide equal
opportunity for affordable housing.
Collaborating with Logan, Inc. allows South
Bend Heritage to extend its services to those
with special needs. Therefore, South Bend
Heritage is respectfully requesting special
consideration of a 10 year real property
abatement.
A review of the estimated taxes abated/paid
over the requested ten (10) year period has
determined that approximately $298,857
would be abated and $304, 895 would be
paid. If South Bend Heritage is not granted
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South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
6. NEW BUSINESS (CONT.)
c. continued....
the ten year abatement and a six year
abatement is granted, total estimated taxes
abated over a six year period would be
$212,923 and total taxes paid would be
$149,328.
Because the project does not meet the
minimum requirements for the requested 10
year abatement, it will be considered as a
special exception by the South Bend
Common Council. This petition will be
presented to the South Bend Common
Council on Monday, October 27, 1997, but
the petition first requires the approval of the
South Bend Redevelopment Commission.
Dea Andrews of South Bend Heritage
presented drawings of the proposed project.
Ms. Andrews stated that the lots have been
empty for quite some time. The total twelve
lots located on Spruce Street have been
replatted into six lots.
Ms. Andrews stated that the proposed
housing will have a single - family appearance
to them, with an upstairs and downstairs.
When South Bend Heritage started this
project with Logan, Inc., they started with
three sites but reduced the project to this one
location. They would have come close or
exceeded the $4 million requirement of the
10 -year tax abatement if they had built on all
three sites.
Ms. Auburn asked if South Bend Heritage
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South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
6. NEW BUSINESS (CONT.)
c. continued....
will be able to develop the remaining nine
houses of the anticipated 15 houses, in the
future. Ms. Andrews stated that South Bend
Heritage hopes, in the future, to develop the
remaining nine houses of the anticipated 15
houses.
Mr. Hunt asked if Logan, Inc. has identified
an additional need to develop the remaining
nine houses.
Ms. Andrews stated that South Bend Heritage
wants to move cautiously, making sure the
houses fill and are able to operate in a fiscally
responsible way. She stated that South Bend
Heritage feels that this proposed project is a
very good start for future developments.
Ms. Auburn asked who will own, manage
and maintain the houses. Ms. Andrews stated
that South Bend Heritage will own, manage,
and maintain the houses, but Logan, Inc. will
supply the tenants and the support services.
Ms. Andrews also stated that Logan, Inc. will
take each person, whom they recommend to
occupy a unit, and establish a plan that will
accommodate each of their daily needs. She
also stated that some of the qualified tenants
have jobs and use public transportation which
includes Colfax Street in its daily route.
Three of the duplexes will have three
bedrooms in each of the six units. Each of
the assigned supervisors will occupy one of
the three bedrooms in the three- bedroom
units. Mr. Hunt asked Dea
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South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
6. NEW BUSINESS (CONT.)
c. continued....
Andrews if any of the proposed employment
persons are of South Bend Heritage or Logan,
Inc. Ms. Andrews stated that the employees
will be a combination of both South Bend
Heritage's and Logan, Inc.'s. She also stated
that South Bend Heritage currently has a
property management division which
manages all of their properties. Ms. Andrews
stated that the proposed four new employees
will be employees of South Bend Heritage
and Logan, Inc., and one of the four positions
will be a maintenance position whose
responsibilities include mowing the grass in
the spring and summer, and shoveling the
snow in the winter, etc.
Ms. Andrews stated that one of South Bend
Heritage's site people will be in charge of
leasing out the units. The tenants that qualify
based on their income and other criteria, must
meet those same requirements each year.
Upon a motion by Ms. Auburn, seconded by
Mr. Donoho and unanimously carried, the
Commission adopted Resolution No. 1543
approving an application for real property tax
deduction for property located in the 1200
Block of West Colfax Avenue and the 100
Block of Spruce Street in the West
Washington- Chapin Development Area.
(South Bend Heritage Foundation)
d. Commission approval requested for
Resolution No. 1546 approving an
application for real property tax deduction
for property located at 4085 Ralph Jones
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COMMISSION ADOPTED RESOLUTION NO. 1543
APPROVING AN APPLICATION FOR REAL
PROPERTY TAX DEDUCTION FOR PROPERTY
LOCATED IN THE 1200 BLOCK OF WEST COLFAX
AVENUE AND THE 100 BLOCK OF SPRUCE
STREET IN THE WEST WASHINGTON -CHAPIN
DEVELOPMENT AREA (SOUTH BEND HERITAGE
FOUNDATION)
South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
6. NEW BUSINESS (CONT.)
d. continued....
Drive in the Airport Economic
Development Area. (Apollo Precision
Machining, Inc.)
Mike Beitzinger gave the staff report.
Apollo Precision Machining is a production
machine shop. They manufacture parts from
steel, brass, aluminum, plastic and nylon for
the agricultural, dairy and flexible assembly
industries, as well as supplying gauging
components for the pattern industry. Apollo
is capable of a broad range of CNC turning,
CNC milling, drilling, tapping, honing and
manufacturing parts from bar stock, castings,
weldments and burnouts. Their project calls
for 10,000 sf of additional manufacturing
space to the existing building at a cost of
$230,000. The additional space is critical to
the growth of the business.
The new addition, coupled with a three -year
equipment acquisition plan, will allow the
company to satisfy increasing customer
demands and bring in new business from out
of state while maintaining its high standards.
Per the petition, it is estimated that this
project will create six (6) new, permanent
jobs within the first year, representing a new
annual payroll of $150,0000 and will
maintain 29 existing permanent, full -time
jobs and no -part time jobs representing an
annual payroll of $807,000.
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South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
6. NEW BUSINESS (CONT.)
d. continued....
A review of the tax abatements previously
granted finds that the Apollo Precision
Machining has been granted three previous
tax abatements. The first, a three year real
property abatement, was passed in August
1994. The second, a five year personal
property abatement, was passed in August
1994. The last abatement was a five year
personal property abatement passed in July
1997. Apollo Precision 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 project. A review of
the South Bend Redevelopment Areas finds
that the property is located in the Airport
Economic Development Area, which is a Tax
Incremental Allocation Area; therefore, the
petition for real property tax abatement must
first be approved by the South Bend
Redevelopment Commission. A review of
the Tax Abatement Ordinance finds that
Apollo Precision Machining meets the
qualifications for a three (3) year real
property tax abatement.
Using the estimated project cost of $230,000,
the taxes to be generated total approximately
$33,063. The taxes to be abated total
approximately $22,042. The taxes still paid
with the abatement will total approximately
$11,021.
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South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
6. NEW BUSINESS (CONT.)
d. continued....
Robert Prine, representing Apollo Precision
Machining, Inc., stated that they did not
anticipate this expansion for another year.
But business is doing so well that they were
forced to expand earlier than anticipated.
Robert Prine stated that the development of
this new project will create six new,
permanent jobs within the first year, and they
anticipate an additional ten new jobs within
this three -year plan.
Upon a motion by Mr. Donoho, seconded by
Ms. Auburn and unanimously carried, the
Commission adopted Resolution No. 1546
approving an application for real property tax
deduction for property located at 4185 Ralph
Jones Drive in the Airport Economic
Development Area. (Apollo Precision
Machining, Inc.)
e. Staff report on acquisition of property in
the Sample -Ewing Development Area.
Mrs. Kolata stated that five counter offers
were received.
The first counter offer is from Russell
Sosnoski and Mary Degaugh for a residential
property located at 709 E. Wenger. The
counter offer is in the amount of $57,000.
The original purchase offer was $25,000.
The staff recommends accepting the counter
offer in the amount of $57,000, plus real
estate taxes. This is a lump sum payment for
both acquisition and relocation. It includes
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E
COMMISSION ADOPTED RESOLUTION NO. 1546
APPROVING AN APPLICATION FOR REAL
PROPERTY TAX DEDUCTION FOR PROPERTY
LOCATED AT 4185 RALPH JONES DRIVE IN THE
AIRPORT ECONOMIC DEVELOPMENT AREA.
(APOLLO PRECISION MACHINING, INC.)
South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
6. NEW BUSINESS (CONT.)
e. continued....
all relocation payments that they would be
eligible to receive.
Upon a motion by Ms. Auburn, seconded by
Mr. Donoho and unanimously carried, the
Commission accepted the counter offer in the
lump sum amount of $57,000, plus real estate
taxes, from Russell Sosnoski and Mary
Degaugh for a residential property located at
709 E. Wenger.
The second counter offer received is from
Emery M. Horvath for two vacant lots
located on East Wenger. The counter offer is
in the amount of $1,250, plus real estate
taxes, for each of the lots. The original
purchase offer was $775.00 for each of the
lots. The staff recommends accepting the
counter offer in the amount of $1,250, plus
real estate taxes, for each of the lots.
Upon a motion by Ms. Auburn, seconded by
Mr. Donoho and unanimously carried, the
Commission approved the counter offer from
Emery M. Horvath in the amount of $1,250,
plus real estate taxes, for each of the lots
located on East Wenger.
The third counter offer is from Emery M.
Horvath for property located at 1215
Hoffman Court. The original purchase offer
was $13,500. The staff recommends
accepting the counter offer of $50,000, plus
real estate taxes. This is a lump sum payment
for both acquisition and relocation. It
includes all relocation that he would be
H:\HOME\ CPHIPPS \WPDATA \COMMSN\101797.MIN -23-
COMMISSION ACCEPTED THE COUNTER OFFER
IN THE LUMP SUM AMOUNT OF $57,000, PLUS
REAL ESTATE TAXES, FROM RUSSELL
SOSNOSKI AND MARY DEGAUGH FOR A
RESIDENTIAL PROPERTY LOCATED AT 709 E.
WENGER
COMMISSION APPROVED THE COUNTER OFFER
FROM EMERY M. HORVATH IN THE AMOUNT OF
$1,250, PLUS REAL ESTATE TAXES, FOR EACH OF
THE LOTS LOCATED ON EAST WENGER
0
South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
6. NEW BUSINESS (CONT.)
e. continued....
eligible to receive.
Upon a motion by Ms. Auburn, seconded by
Mr. Donoho and unanimously carried, the
Commission accepted the counter offer from
Emery M. Horvath in the lump sum amount
of $50,000, plus real estate taxes for the
property located at 1215 Hoffinan Court.
The last counter offer received is from Emery
M. Horvath for property located at 1219
Hoffman Court. The original purchase offer
was $11,500. The staff recommends
accepting Emery M. Horvath's settlement of
$9,000, plus real estate taxes.
COMMISSION ACCEPTED THE COUNTER OFFER
FROM EMERY M. HORVATH IN THE LUMP SUM
AMOUNT OF $50,000, PLUS REAL ESTATE TAXES
FOR THE PROPERTY LOCATED AT 1215
HOFFMAN COURT
Upon a motion by Ms. Auburn, seconded by COMMISSION ACCEPTED EMERY M. HORVATH'S
Mr. Donoho and unanimously carried, the SETTLEMENT OF $9,000, PLUS REAL ESTATE
Commission accepted Emery M. Horvath's TAXES FOR THE PROPERTY LOCATED AT 1219
HOFFMAN COURT
settlement of $9,000, plus real estate taxes for
the property located at 1219 Hoffman Court.
E Commission approval requested for
proposal from R.E. McCloskey &
Associates, Inc. for appraisals in the
Main /Jefferson Block and 1100 South
Michigan Block in the South Bend Central
Development Area and Sample -Ewing
Development Area.
Mrs. Kolata stated that Richard McCloskey's
proposal for appraisal services was accepted
at a previous meeting. When Mr. McCloskey
received the title information from the
Division of Redevelopment, he determined
that there were more appraisals than had
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® •
South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
6. NEW BUSINESS (CONT.)
f. continued....
previously been indicated. The two vacant
lots were assumed to be a part of other
properties when, in fact, they have separate
ownerships.
Richard McCloskey requested that he receive
an additional $1,500 for each of the two
appraisals. Mrs. Kolata stated that Joanna
Smith and she have looked at the title work
and survey and determined that there are
indeed two additional appraisals.
Upon a motion by Ms. Auburn, seconded by
COMMISSION ACCEPTED THE PROPOSAL FROM
Mr. Donoho and unanimously carried, the
R.E. MCCLOSKEY & ASSOCIATES, INC. FOR
Commission accepted the proposal from R.E.
APPRAISALS IN THE MAIN/JEFFERSON BLOCK
McCloskey & Associates, Inc. for appraisals
AND 1100 SOUTH MICHIGAN BLOCK IN THE
SOUTH BEND CENTRAL DEVELOPMENT AREA
in the Main/Jefferson Block and 1100 South
AND SAMPLE -EWING DEVELOPMENT AREA
Michigan Block in the South Bend Central
Development Area and Sample -Ewing
Development Area.
g. Commission approval requested for Loan
and Grant in connection with the
Affordable Loan Program for property
located at 1336 E. Dayton. (Barry and
Heather Clark)
Mrs. Kolata stated that the loan to Barry and
Heather Clark is in the amount of $5,150 at
0% for ten years with monthly payments of
$42.92. The grant is in the amount of
$4,886.75.
H:\ HOME\ CPHIPPS \WPDATA \COMMSN\101797.MTN -25-
® i
South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
6. NEW BUSINESS (CONT.)
g. continued....
Upon a motion by Ms. Auburn, seconded by COMMISSION APPROVED THE LOAN AND
Mr. Donoho and unanimously carried, the GRANT IN CONNECTION WITH THE
Commission approved the Loan and Grant in AFFORDABLE LOAN PROGRAM FOR PROPERTY
LOCATED AT 1336 E. DAYTON. (BARRY AND
connection with the Affordable Loan HEATHER CLARK)
Program for property located at 1336 E.
Dayton. (Barry and Heather Clark)
h. Commission approval requested for Loan
and Grant in connection with the
Affordable Loan Program for property
located at 902 S. Lombardy. (Virginia
Wawrzyniak)
Mrs. Kolata stated that the loan to Virginia
Wawrzyniak is in the amount of $2,500 at
0% interest for five years with monthly
payments of $41.67. The grant is in the
amount of $2,318.25.
Upon a motion by Ms. Auburn, seconded by COMMISSION APPROVED THE LOAN AND
Mr. Donoho and unanimously carried, the GRANT IN CONNECTION WITH THE
Commission approved the Loan and Grant in AFFORDABLE LOAN PROGRAM FOR PROPERTY
LOCATED AT 902 S. LOMBARDY. (VIRGINIA
connection with the Affordable Loan WAWRZYNIAK)
Program for property located at 902 S.
Lombardy. (Virginia Wawrzyniak)
i. Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property located at 829 E. Miner. (Paul
and Mary Jo Quinn)
Mrs. Kolata stated that this Certificate of
Waiver forgives $453.16 as of September 11,
1997.
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P
South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
6. NEW BUSINESS (CONT.)
i. continued....
Upon a motion by Mr. Donoho, seconded by
Ms. Auburn and unanimously carried, the
Commission approved the Certificate of
Waiver in connection with the Rental Rehab
Loan Program for property located at 829 E.
Miner. (Paul and Mary Jo Quinn)
j. Commission approval requested for
proposals for appraisal services in the
South Bend Central Development Area.
Mrs. Kolata stated that three proposals were
received. Only one appraiser is needed
because one appraisal of the property has
already been completed. She also stated that
the staff requested one report attributing the
value to the two separate owners.
Mrs. Kolata stated that the lot is an L- shaped
piece of property and it has slightly different
ownerships. There are some overlapping
ownerships, so the staff requested a single
appraisal report. This resulted in adjustments
to the proposals that were originally
submitted.
Ralph D. Lauver proposed to do the work for
an amount of $3,000, instead of $3,500.
Jerome Michaels proposed to do the work for
$2,500. Richard McCloskey proposed to do
the work for $2,800. The staff recommends
accepting the proposal from Jerome Michaels.
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COMMISSION APPROVED THE CERTIFICATE OF
WAIVER IN CONNECTION WITH THE RENTAL
REHAB LOAN PROGRAM FOR PROPERTY
LOCATED AT 829 E. MINER. (PAUL AND MARY JO
QUINN)
v
South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
6. NEW BUSINESS (CONT.)
j. continued....
Upon a motion by Ms. Auburn, seconded by
Mr. Donoho and unanimously carried, the
Commission accepted the proposal from
Jerome Michaels in the amount of $2,800 for
appraisal services in the South Bend Central
Development Area.
k. Commission approval requested for
proposal for appraisal services in the
Airport Economic Development Area.
Mrs. Kolata asked permission to table item
61. There were no objections and item 61.
was tabled.
1. Commission approval requested for
proposal for professional services.
(Bourdon and Bourdon)
Mrs. Kolata stated that this proposal is for
aerial photography of an area that
encompasses Redevelopment's project areas.
The cost for this work is $700.00, which
includes the price of the film, proofs, time and
the air charter. The scope of services does not
include the actual photographs that will be
printed from the negatives.
Upon a motion by Mr. Donoho, seconded by
Ms. Auburn and unanimously carried, the
Commission accepted the proposal from
Bourdon and Bourdon for professional
services.
H:\ HOME\ CPHIPPS \WPDATA \COMMSN\101797.MIN -28-
n
COMMISSION ACCEPTED THE PROPOSAL FROM
JEROME MICHAELS IN THE AMOUNT OF $2,800
FOR APPRAISAL SERVICES IN THE SOUTH BEND
CENTRAL DEVELOPMENT AREA
ITEM 6.K. WAS TABLED
COMMISSION ACCEPTED THE PROPOSAL FROM
BOURDON AND BOURDON FOR PROFESSIONAL
SERVICES
South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
6. NEW BUSINESS (CONT.)
m. Commission approval requested for a
proposal from KCH & Associates, Inc. for
Consulting Agreement in the Sample -
Ewing Development Area.
Mrs. Kolata stated that this proposal is for
services related to a financial plan and strategy
for the possible purchase of the Ivy Tower
property. The cost for this work is not -to-
exceed $2,500.
Upon a motion by Mr. Donoho, seconded by
Ms. Auburn and unanimously, the
Commission accepted the proposal from KCH
& Associates, Inc. for a Consulting Agreement
in the Sample -Ewing Development Area.
n. Commission approval requested for
proposal for clean out of property located
in the Sample -Ewing Development Area.
Mrs. Kolata stated that this proposal is for the
Historic Wenger Homestead property located
at 701 E. Pennsylvania. This building has a
lot of things in it that need to be removed.
There were two proposals received. The first
proposal received was from First Response
Construction, Inc. in the amount of $3,760.
The second proposal received was from
Servpro, Inc. in the amount of $3,866.94. The
staff recommends accepting the proposal from
First Response Construction, Inc. in the
amount of $3,760.
Upon a motion by Ms. Auburn, seconded by
Mr. Donoho and unanimously carried, the
Commission accepted the proposal from First
Response Construction, Inc. in the amount of
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E
COMMISSION ACCEPTED THE PROPOSAL FROM
KCH & ASSOCIATES, INC. FOR A CONSULTING
AGREEMENT IN THE SAMPLE -EWING
DEVELOPMENT AREA
COMMISSION ACCEPTED THE PROPOSAL FROM
FIRST RESPONSE CONSTRUCTION, INC. IN THE
AMOUNT OF $3,760
South Bend Redevelopment Commission
Regular Meeting - October 17, 1997
$3,760.
7. PROGRESS REPORTS
There were no Progress Reports.
8. NEXT COMMISSION MEETING:
The next Meeting of the Redevelopment
Commission is a Special Meeting scheduled for
October 22, 1997 at 8:30 a.m.
9. ADJOURNMENT
There being no further business to come before
the Redevelopment Commission, Ms. Auburn
made a motion that the meeting be adjourned.
Mr. D seconded the motion and the meeting
THERE WERE NO PROGRESS REPORTS
NEXT SCHEDULED MEETING
ADJOURNMENT
w o ed at 1 :5 m.
Robert W. Hunt, President Ann E. Kolata, Director
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