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HomeMy WebLinkAboutRM 11-21-97\ SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING November 21, 1997 10:00 P.M. Presiding: Robert W. Hunt, President 1. ROLL CALL 1308 County -City Building 227 West Jefferson Boulevard South Bend, Indiana 46601 Members Present: Mr. Robert W. Hunt, President Mr. Michael Donoho, Vice - President Ms. Paula N. Auburn, Secretary Ms. Eugenia S. Schwartz Members Absent: 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 Mr. Owen Rock, Economic Development Specialist Ms. Amy Tweeten, Economic Development Specialist Ms. Joanna Smith, Economic Development Specialist Ms. Regina Plummer, Intern Business Assistance: Mr. Michael Beitzinger, Economic Development Specialist Others: Mr. Joseph A. Gorny Mrs. Geraldine Gorny Mr. Kevin J. Butler Mr. Jim Seaver, Eaton Corporation Mr. Mike Dobson, B & R Oil Company Mr. Stanley Tomaszewski Mr. Roy Gallaway Mr. Les Fox Ms. Becky Zaseck Mr. Conrad Hochstetler, Attorney Mr. Fernando Orozca Mr. Dick Best Ms. Carol Minker Mr. Greg Kil HAHOME \CPHIPPS \WPDATA \COMMSN\l 12197.MIN -I- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 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 November 7, 1997. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Minutes of the Regular Meeting of November 7, 1997. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF NOVEMBER 7, 1997 Redevelopment Commission Claims submitted November 21, 1997, for approval 212 CDBG COMMUNITY DEVELOPMENT Panzica Architects Inc. South Bend Tribune South Bend Tribune Upper Deck Inc. Calendars Catering By Billie, Inc. Bourdon & Bourdon Studios Business Systems, Inc. South Bend Tribune Ann Kolata South Bend Tribune South Bend Water Works Ameritech Amy Tweeten Ameritech Dept. of Engineering 324 FUND Dye Mechanical Contractors H:\ HOME\CPHIPPS \WPDATA \COMMSM112197.MIN -2- $2,557.00 $27.97 $12.95 $259.60 $37.54 $42.05 $700.00 $6.34 $54.39 $97.95 $16.32 $13.40 $26.28 $37.00 $75.00 $297.40 $19,910.00 • ' a ' South Bend Redevelopment Commission Regular Meeting - November 21, 1997 3. APPROVAL OF CLAIMS (CONT.) 414 SAMPLE -EWING FUND ABV Management Inc. Cole Associates Inc. Grauvogel & Associates Code Enforcement American Electric Power American Electric Power American Electric Power Hochstetler Plumbing & Heating, Inc. Patricia Dotson Patricia Dotson & Chester Harris Richard Voss and NBD Bank Richard Voss St. Joseph County Treasurer #1 St. Joseph County Treasurer #2 420 SBCDA GENERAL ACCOUNT Robert Bradley Associates, LLC American Electric Power South Bend Water Works American Electric Power R.E. McCloskey & Associates, Inc. Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Commission approved the Claims submitted November 7, 1997 and ordered the checks to be released. Ms. Schwartz abstained. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. HAH0N E\ \CPHIPPS\ WPDATA \COMMSN\ 112197.MIN -3- $20,000.00 $7,746.00 $1,420.00 $2,950.00 $6.65 $277.64 $94.75 $3,476.00 $1,763.71 $2,500.00 $8,754.71 $57,599.16 $1,568.90 $77.23 $943.12 $6.65 $366.05 $582.76 $3,500.00 COMMISSION APPROVED THE CLAIMS SUBMITTED NOVEMBER 7, 1997 AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS . 1 South Bend Redevelopment Commission Regular Meeting - November 21, 1997 Mrs. Kolata asked permission to add 6.v. to ADDED ITEM 6.V. TO THE AGENDA the agenda. There were no objections and item 6.v. was added to the agenda. 6. NEW BUSINESS a. Public Hearing on Resolution No. 1545. Mrs. Kolata asked that the following items be entered into the record: Affidavits from Richard J. Andrysiak, Classified Manager of the Tri- County News and Carol Smith, Advertising Manager of the South Bend Tribune that the Notice of Public Hearing was published in those newspapers on November 7, 1997; a statement from Owen Rock stating that on November 7, 1997, he sent a Statement to Taxing Units to the taxing juri sdictions located in the Airport Economic Development Area; a statement from Owen Rock that on November 7, 1997, he sent a Notice of Public Hearing to the affected property owners and registered Neighborhood Associations. No written remonstrances were received regarding Resolution No. 1545 as of 10:00 a.m. this morning. Mrs. Kolata explained that Resolution No. 1545 amends the Development Plan for the Airport Economic Development Area by adding Expansion Area No. 5 into the boundaries of the Airport Economic Development Area. Expansion Area No. 5 was recently annexed into the city and is located East of Olive Road, West of the Bypass and North of old Cleveland Road. Resolution No. 1545 also establishes Expansion Area No. 5 as part of the Tax Allocation Area for purposes of Tax HA\ H0ME\ CPHIPPS \WPDATA \C0MMSN\112197.MIN -4- \ South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) a. continued.... Increment Financing. There are two additional provisions in Resolution No. 1545. First, the Tax Allocation Provision for Expansion Area No. 5 will expire on December 31, 2026. This Provision also amends Resolution No. 1349 to provide for an expiration date of December 31, 2024, for the Tax Allocation Provision for Expansion Area No. 4. The proposed use for the property is Industrial. The property that was recently annexed into the city includes the Ameriplex Industrial Park, Wells Electronics and a piece of property that is located between the Ameriplex property and Wells Electronics. Mr. Hunt opened the Public Hearing for anyone who wished to speak regarding Resolution No. 1545. There was no one who wished to speak regarding Resolution No. 1545. Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. Ms. Schwartz asked to be shown which parcels exactly, on the map, were annexed into the city. James Riggs pointed out these exact parcels on the map. b. Commission approval requested for Resolution No. 1545 making certain technical corrections to Resolution H:\ HOME\ CPHIPPS \WPDATA \COMMSN\112197.MIN -5- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) b. continued.... No. 1349 and expanding the boundaries of the Airport Economic Development Area, expanding the Allocation Area for purposes of Tax Increment Financing and amending the Airport Economic Development Area Development Plan. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1545 making certain technical corrections to Resolution No. 1349 and expanding the boundaries of the Airport Economic Development Area, expanding the Allocation Area for purposes of Tax Increment Financing and amending the Airport Economic Development Area Development Plan. c. Public Hearing on Resolution No. 1547. Mrs. Kolata asked that the following items be entered into the record: Affidavits from Richard J. Andrysiak, Classified Manager for the Tri- County News and Carol Smith, Advertising Director of the South Bend Tribune that the Notice of Public Hearing was published in those newspapers on November 7, 1997; a memorandum from Amy Tweeten stating that a copy of the Notice of Public Hearing was sent on November 7, 1997, to the affected property owners and registered Neighborhood Associations. As of 10:00 a.m. today one remonstrance has been received regarding Resolution No. 1547. H:\HOME \CPHIPPS \WPDATA \COMMSN\I 12197.MIN -6- COMMISSION ADOPTED RESOLUTION NO. 1545 MAKING CERTAIN TECHNICAL CORRECTIONS TO RESOLUTION NO. 1349 AND EXPANDING THE BOUNDARIES OF THE AIRPORT ECONOMIC DEVELOPMENT AREA, EXPANDING THE ALLOCATION AREA FOR PURPOSES OF TAX INCREMENT FINANCING AND AMENDING THE AIRPORT ECONOMIC DEVELOPMENT AREA DEVELOPMENT PLAN � 1 South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) c. continued.... Mrs. Kolata explained that Resolution No. 1547 amends the Development Plan for the South Bend Central Development Area by adding one piece of property at 214 W. Jefferson Boulevard, owned by Carol J. Minker to the acquisition list. Mr. Hunt opened the public hearing for anyone who wished to speak regarding Resolution No. 1547. GREG KIL: I am an architect working with Carol Minker and Steve Moerlein, owners of the property located at 214 W. Jefferson Boulevard. Carol Minker is here with me today. I have been working with the owners in developing a plan to remodel this building for office use on the upper three floors and restaurant use on the lower level. If you recall, this is the former Barb's Restaurant and everyone is familiar with the building. In July or August we were approached by Jon Hunt regarding the possibility of acquisition to purchase the building for, what we understood, development of the quarter block as a future potential office development. At the time, Mr. Moerlein expressed a desire to pursue the project as we had developed it to that point and we are continuing to pursue it. Ms. Minker's and Steve Moerlein's intent for the project is developing the building as law offices for Mr. Moerlein's law practice and the location is very desirable. My work with H:\HOME\CPHIPPS\ WPDATA \COMMSN\ 112197.MIN -7- t a. South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) c. continued.... the city, up to that point, continued to have been with the Building Department, Fire Department and the Engineering Department to see that the project is consistent with codes and is viable in terms of remodeling and rehabbing the building. One of things that Mr. Moerlein's remonstrance is based on, is to let their building exist and if the quarter block is to be acquired, then work with us. I had a follow -up meeting with Jon Hunt regarding a graphic study and I have some copies of that study that I would like to share with you. I know that I sent copies to Redevelopment, but I am not sure if any of the Commission members here today are familiar with the studies that I prepared looking at future office building that leaves Mr. Moerlein's and Ms. Minker's building "as is." Of the square footage, floor plate area and of the height with the exposure on Jefferson and Main Streets, we would like to explore potential middle ground and work with Redevelopment. We understand the nature of this block as being a prime block for office development. It has been expressed to my client that there is need to demolish this building and market it as a clean development site. Our building can stand alone without requiring any future development for emergency egress, utilities or other contingencies. We realize the only minor premium in developing a HAHOMETPHIPPS \WPDATATOMMSM 112197.MIN —8— r � South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) c. continued.... future building is some shoring around the foundation of the former Barb's Restaurant. The floor plate of the building that I am working on is very small (22' x 66), so we don't think by leaving our building where it is, underminds the potential of the site. We also question why this particular parcel of the full quarter block, if it truly is being pursued for acquisition, is the first one on the docket. That is a question, specifically to Redevelopment, that Mr. Moerlein and Ms. Minker have. Ms. Kolata explained that the appraisals for the remaining properties that are located within this quarter block have not yet been received. GREG KIL: The other question that we have is, when we have asked, "What other plans are there for the block... ? "; "Is there a specific developer or specific owner that is pursuing a detailed development plan to develop the whole quarter block?", we have gotten a negative response. Mrs. Kolata answered that "Right now there is no one pursuing that quarter block, no specific party, individual or developer is looking to develop this quarter block. There are general inquiries on a regular basis." GREG KIL: Our concern is, if there is someone, is there some middle ground for ce H: HOME\CPHIPPS', WPDATA \COMMSN\ I 1 Z 197.MIN -9- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) c. continued.... looking at our plan that would accommodate our building where it is, allowing for a floor - plate -size for overall gross square footage that Jon Hunt had indicated that developers are looking for in the downtown area. What is left on Jefferson Boulevard is approximately a hundred and thirty square feet of frontage and on Main Street, I think is approximately one hundred and forty-five feet of frontage, which is what I think the potential office owner is looking for. Carol Minker is here if she has anything she would like to add. Mrs. Kolata explained that the purpose for acquiring the building at 214 W. Jefferson Boulevard is to assemble a development site for new office construction. The Leighton Plaza project is the last large site owned by Redevelopment in the downtown area for new development. The intent is to acquire the quarter block and have it cleared then put the block up for public bid. There have been general inquiries into what office sites are available. The intent is to put it up for public bid and establish what the minimum requirements are in terms of building size, etc. Keeping this building and not including it in the development site would impair the full development of that quarter block. The general sense of new office building construction is generally to have at least a 20,000 sf footprint. The style of construction when HAHOME,CPHIPPS\ WPDATA COMMSM 112197.MIN -10- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) c. continued.... that building was originally built was that each building was built right next to each other and they were taller. The downtown area today, it might inhibit a developer from developing within this quarter block if the building at 214 W. Jefferson Boulevard was right next door. GREG KIL: I'd like to expand on our remonstrance. I think that one of the other issues I would like to bring forth, points to some of the previous plans that have been developed in the 1985 Plan and the 2010 Plan setting re -use of existing structures as being a positive to the downtown area. I think this can be a win -win situation on behalf of my client, where we can retain a building that is structurally sound and in my opinion as an architect, does not impede the development of that quarter parcel of what would be remaining unless my clients' property still holds incredible value. It, again, has only a small corner (22' x 66') floor plate. The fact that South Bend, over its years, has taken down a lot of buildings with more historical integrity than this building, we see it all around the downtown area, we would like consideration that this building be retained and worked around. In the end, I think what downtown would have is even a better and more viable urban fabric. We have lost so many buildings and this building does have a very distinguished front facade on Jefferson Boulevard. HM OME\ CPHIPPS \WPDATA \COMMSN\112197.MIN _11- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) c. continued.... My client has done some work removing some of the boarded up plywood. All of the masonry is intact and is structurally sound. I know that the mentality of a developer in 1997 is, "I want a clean block, give me a clean block or else I am not going to build." I don't think the parcel that we are asking you to retain would impact or would change the mind of a developer making an offer on that parcel. I think that this can still be a win - win situation. Thank you for your time and if there are any questions about the specific architectural proposal that we have.... Ms. Schwartz asked what is the status of an issuance of a building permit for the work that is to be done on the building at 214 W. Jefferson Boulevard. GREG KIL: We have worked with Don Fozo, Building Commissioner, and Jim Markle in the preliminary code review and have worked to send down state to Indianapolis to use an exterior fire stair as a second means of egress. That has been in communication since this summer, up to this past week. One of the things that we have also done is confirmed the work that has been done on the property that does not require a permit because it is non- structural and is basically cosmetic work. HAHOMETPHIPPSMPDATATOMMSNA 12197.MIN -12- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) c. continued.... One thing I do know that we have had communication about up through this past week, my client hope to have the window sash and jambs painted and primed before the weather had a chance to break. Since the weather has broken, we went ahead and boarded up the second floor which was a specific request of Jim Markle, assistant to the building commissioner. Mrs. Kolata responded that to her understanding, Mr. Moerlein and Carol Minker have applied for an easement from the city through its Board of Public Works for encroaching into the alley right -of -way for the fire escape. Anne Bruneel noted that Mr. Moerlein and Ms. Minker also applied for an easement for all of the windows as well as for the fire escape on the west side of the building. Mrs. Kolata explained that she went to that meeting and asked that a permit not be issued at this time for an easement for encroaching into the alley right -of -way for the fire escape and windows because the building was being looked at for acquisition. The Board of Public Works asked at that point if the different city departments had written reports or have been asked for reports on this request. It was sent to all city departments for review. Mrs. Kolata didn't believe, to her knowledge, that the request has come back to the Board of Public Works for action at this point. HAH0ME\CPHIPPS\ WPDATA \COMMSN\ l 12197.MIN -13- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) c. continued.... Mrs. Kolata explained that the method of egress and the window opening on the west side of the building at 214 W. Jefferson Boulevard would require, to her knowledge, an easement from the city in order to be allowed to get a building permit. GREG KIL: If I can follow up on that. The specific request that we had asked for was for the fire stair. The windows are allowed by code as they stand, since we are not changing the windows and we are just scraping, painting and reglazing the windows. We are providing an internal fire stair at the south end of the building and the existing exterior fire stair would only be used as a second means of egress given the change of use of the upper level. It is true that we don't have, without the Board of Public Works execution of the easement, the ability to go for full permits down state with the proposed use as it stands, which is the change of use of the upper floors. It would be possible for us to develop the project without that easement, given its existing occupancy type, which is R -1 in the upper level in the former hotel and B -2 office or restaurant on the first floor. Ms. Schwartz asked if at one point of the building's life it was a hotel. GREG KIL: Originally it was constructed as an office building back in the first HAHOME\CPHIPPS \WPDATA \COMMSM 112197.MIN -14- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) c. continued.... decade of the century. Then the Jefferson Hotel was built and this was engaged as part of a west wing. Internal circulation was tied to what is now the side of the Hardee's building and that has been removed and that is why there is no access within the building. Frankly, it would be possible for us to develop the upper floor without an easement and that is an option my client is considering if the Board of Public Works doesn't pursue the execution of the easement as it is written. Ms. Schwartz asked if Greg Kil has explored or addressed the potential for a ruling if the easement is abandoned. GREG KIL: That is something we are very aware of and that is something that my client is not interested to pursue, but that is an option. Mrs. Kolata commented that Mr. Kil refers to the South Bend Central Development Area 1985 Plan and the 2010 Vision Plan. The 2010 Vision Plan is not an adopted Redevelopment Plan. The 2010 Vision Plan is something that has been established by Center City Associates and is not the official document for the Redevelopment Plan of this area. The 1985 Plan is the plan that is being amended by having the property at 214 W. Jefferson Boulevard added to the acquisition list. The action today is reasonable in relationship to that Plan. HA TOME\ CPHIPPS \WPDATA \COMMSN\112197.MIN -15- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) c. continued.... The reference that Mr. Kil made to re -use the building is in the Vision 2010 Plan as opposed to the 1985 Redevelopment Plan. GREG KIL: Again I'd like to point to the study that I did, the graphic study showing the proposed corner development. Our building, again, would be only a 22 foot frontage that would be superseded if you were to retain this property and acquire it. We think that this is a reasonable request. The building is structurally sound, we feel it has an attitude and integrity of South Bend and acknowledges its history. This building is special in that there are not many other buildings like it that exist. A lot of these fairly common, three or four - story walkups with office or mixed use with a restaurant or a walkup commercial /retail on the lower level don't exist because of the desire to remove them, if they were not considered a positive or the integrity of the buildings to retain and to rehab. I think that is different now, I think that there is a better understanding that our stock of structures downtown, what we have left, is special, even if they are common. That is what I employ to you to consider in our remonstrance today. Ms. Schwartz commented that Mr. Kil mentioned a walkup. She asked if the rehabilitation of the building would require construction of an elevator. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\112197.MIN -16- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) c. continued.... GREG KIL: Yes, the existing building does have a shaft in the back which we will be rehabbing with the new hydraulic unit, cab and controls and that does exist. Mr. Hunt asked if anyone else wished to be heard on Resolution No. 1547. There was no one else. Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. d. Commission approval requested for Resolution No. 1547 amending the South Bend Central Development Area Development Plan. Ms. Auburn stated that she would make a motion to adopt Resolution No. 1547 based on comments made at a former meeting of the Redevelopment Commission. Ms. Auburn explained that based on her recollection of the former Redevelopment Commission meeting, the owner of the property at 214 W. Jefferson Boulevard, appeared before the Commission for tax abatement and laid out this plan. He was not encouraged to proceed at that point and time, based on the fact that the property was being look at for acquisition. This person has proceeded with their project knowing that there was a risk and knowing that it might not be reasonable to do so. GREG KIL: If I can respond to that. I wasn't retained at that time by my client HAHOMfi \CPHIPPS\ WPDATA \COMMSM 112197.MIN -17- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) d. continued.... and unfortunately Steve Moerlein is not here today. My understanding was that the plans for acquisition of that block were not crystal clear. It wasn't made clear to him that the full block was going to be pursued for acquisition. If we knew that at that time, if my client was aware of that, I agree there might have been a different situation in pursuing our development plan. We were not made aware of that until our meeting with Jon Hunt back in late July or early August, that the city or Redevelopment was going to pursue acquisition. At that time, if there was a 90 or 95 percent chance of acquisition, even then, there wasn't indication of where we are at today. Mr. Hunt commented that at that point and time he doesn't believe that it was definite regarding the acquisition of that piece of property, but the statement was made that might not be the best use for the property at 214 W. Jefferson Boulevard. Ms. Schwartz commented that she is voting in favor of adopting Resolution No. 1547. She does so, recognizing in full that certainly re -use of existing buildings where that is the most appropriate overall use for the general benefit of the community. She felt that this is a situation where recognizing the needs of the downtown area for future office development and for a quarter block of land to make that happen. This building is H:\ TOME\ CPHIPPS \WPDATA \COMMSN\112197.MIN -18- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) d. continued.... not consistent with that need. The Redevelopment Commission is part of a number of projects downtown involving the re -use of existing buildings and that is part of the exciting fabric in variety of downtown, but she didn't feel that this particular building fits into the needs that the Redevelopment Commission needs to recognize. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1547 amending the South Bend Central Development Area Development Plan. e. Public Hearing on Resolution No. 1549. Mrs. Kolata asked that the following items be entered into the record: Affidavits from Richard J. Andrysiak, Classified Manager at the Tri- County News and Carol Smith, Advertising Director for the South Bend Tribune that the Notice of Public Hearing was published in those newspapers on November 7, 1997. This Resolution appropriates $184,487 in the Airport Economic Development Area. This is money that has been received from two developers in the area who are paying a portion of the cost of public improvements for road improvements that are in the Airport Economic Development Area. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\112197.MIN -19- COMMISSION ADOPTED RESOLUTION NO. 1547 AMENDING THE SOUTH BEND CENTRAL DEVELOPMENT AREA DEVELOPMENT PLAN South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) e. continued.... Mr. Hunt opened the public hearing for anyone who wished to speak regarding Resolution No. 1549. There was no one who wished to speak regarding Resolution No. 1549. Mr. Hunt closed the public hearing for whatever action the Commission wished to take. L Commission approval requested for Resolution No. 1549, a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1549, a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. g. Public Hearing on Resolution No. 1550. Mrs. Kolata asked that the following items be entered into the record: Affidavits from Richard J. Andrysiak, Classified Manager at the Tri- County News and Carol Smith, Advertising Director for the South Bend Tribune that the Notice of Public Hearing was published in those newspapers on November 7, 1997; a memorandum from John Stark stating that on November 4, 1997, he sent a Notice of Public Hearing to the affected property owners and registered Neighborhood groups and leaders. As of 10:00 a.m., HA TOMETPHIPPS \WPDATATOMMSMI12197.MIN -20- COMMISSION ADOPTED RESOLUTION NO. 1549, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) g. continued.... November 21, 1997, one remonstrance has been received on Resolution No. 1550. Mrs. Kolata explained that the purpose of Resolution No. 1550 is to amend the Sample -Ewing Development Plan by adding a number of properties to the acquisition list. There are two properties located at the intersection of Calvert and Fellows Street. One of the properties is occupied by a business known as Bandito's Burritos owned by Thomas Doran and Leon Eck and the other property is Abe's Plumbing owned by Mark Campbell. These two properties are located within a residential area and are non - residential properties. They are also located at the entrance of the new Riley High School. Relocating these two properties to another area will eliminate an inappropriate use in the residential neighborhood and improve the appearance of the entrance to the new Riley High School. Mrs. Kolata also explained that there are a number of properties located in the 1100 Block of South Michigan. There is a quarter block of property South of Garst Street: Mary Lee's Diner, a vacant lot, a larger building and the Palm Reader's house. The purpose of acquiring this quarter block is to make it available for new development that coincides with the new developments that are taking place across the street with the construction of HAHOME\CPHIPPS \WPDATA \COMMSN\l 12197.MIN -21- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) g. continued.... the new Ivy Tech State College and the completion of the St. Joseph County Juvenile Justice Center. There also have been some other new investments within the 1100 Block of South Michigan, in the recent years, with the Policemen's Credit Union, the Fire Department Credit Union and the Real Services building. The other properties on the acquisition list are located on East Broadway. These properties include a number of vacant lots. The vacant lots are to be purchased for infill housing. The intent is to purchase these lots and then put them up for disposition for single - family homes for home ownership opportunities. The vacant lots will go through the public disposition process. There are five structures located on Marietta and Broadway that at being proposed for acquisition for strengthening the residential neighborhood in that area through acquisition of individually blighted properties. Mr. Hunt opened the public hearing for anyone who wished to speak regarding Resolution No. 1550. KEVIN BUTLER: I represent American Bankers Life Assurance Company. They own the vacant lot at 133 E. Broadway. American Bankers acquired that land through tax sale. At the time of H:\ HOME\ CPHIPPS \WPDATA \COMMSN\112197.MIN -22- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) g. continued.... acquisition, there was a structure on the property. That property was acquired in 1996. Working with Code Enforcement, they first secured and boarded up the building, then subsequently in this year demolished the building. The cost of securing and demolition was $4,000. They have in this property, at this point, in excess of $20,000. There are two homes under construction, one on each side of this now vacant lot. This is not a distressed property. It is not blighted. My understanding is that Redevelopment is not assembling property in this area for a larger development, but rather these acquisitions are for single - family developments. American Bankers will construct a single - family home on this property. It will be in the vicinity of 1,200 to 1,300 sf. A two -story home. The home will be sold. It will be sold to low to moderate income —in terms of the pricing. American Bankers has been acquiring property in Indiana, particularly in Indianapolis, Elkhart, Niles and St. Joseph County. I have been involved with them with respect to two of the properties that they have acquired in Elkhart County, both of which were subsequently sold. Those had homes that they rehabbed and then sold. Their single - family development experience... currently they are building homes on properties that they acquired in Elkridge Maryland and Hartford County Maryland. They are located in the D.C. HAHOME\CPHIPPS \WPDATA \COMMSN\ 112197.MIN -23- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) g. continued.... suburbs of Maryland. We would request that the Commission not include this property on the acquisition list. This is a property that is going to be developed by the current owner of that property and sold. If you have any questions, I will be happy to answer them. Mr. Hunt asked if Mr. Butler's client currently has plans to develop the property. KEVIN BUTLER: Yes, that is there plan. When they demolished the building, that was their plan to then subsequently build. Mr. Hunt asked if there was a time schedule for developing the property. KEVIN BUTLER: Within a year to a year and a half the property will be built and sold. Mr. Auburn asked how long has American Bankers Assurance been in business. KEVIN BUTLER: American Bankers has been in business since 1720 maybe ... for a long, long time. I don't know exactly for how long. American Bankers Assurance Company is a large life insurance company. Ms. Auburn asked if there were any code enforcement issues with the current property owner. H: \[-TOME \CPHIPPS \WPDATA \COMMSN\I 12197.MIN -24- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) g. continued.... KEVIN BUTLER: There are no code enforcement issues at this point. Ms. Auburn asked if there are code enforcement issues with other properties that American Bankers Assurance might own. KATHY DEMPSEY: My name is Kathy Dempsey, I am Director of Code Enforcement for the City of South Bend, and I maintain offices here on the 13th floor. I am certainly surprised to hear this report from American Bankers Life Assurance. I have been aware of them since they bought the piece of property on Broadway at a tax sale probably two years ago or in that vicinity. They then negotiated with another person who is constructing single - family housing on Broadway. It was our first understanding, after we had a demolition ordered affirmed against the property at 133 Broadway, that there was going to be a purchase agreement between American Bankers and this other party —that didn't happen. There was an appeal filed with regard to the demolition, ultimately that was resolved and American Bankers moved forward and did take the house down. This is pretty much the first that I have heard that they are interested in building single - family housing down there. It has been my understanding that American Bankers has been in the business of buying volumes of properties at tax sale for tax RMOMETPHIPPS\ WPDATATOMMSM 112197.MIN -25- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) g. continued.... speculation or for some purpose but I certainly have not been advised by Cornell Bass, who is the principal that I have been working with from American Bankers, that they were interested in buying properties at tax sale for the express purpose of demolishing or rehabbing housing. I know that they have other properties here in South Bend that we have had problems with from a Code Enforcement standpoint and they have been picked up in the same fashion. It was my initial understanding that they were picked up to speculate from a tax standpoint in the interest of obviously recouping their monies from a redemption standpoint. So I can only tell you what I know from my standpoint —this is news to me with regard to their new plan. KEVIN BUTLER: I think that is generally correct. That is what entities that acquire properties at tax sale, that is the general purpose. However, often time the properties are not redeemed. In those instances then, American Bankers makes arrangements to market the property and have the property sold. This is the first property that they have where they have done demolition and have a vacant piece of property, which they now want to proceed with the single - family development. This is something that they do, as I indicated. In Maryland, they have done this, they are doing this in Maryland and intend to do this with this property. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\112197.MIN -26- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) g. continued.... Mr. Hunt asked Kevin Butler if he indicated that American Bankers Life Assurance is constructing single - family housing in Indianapolis and Elkhart. KEVIN BUTLER: No, they have been acquiring —I'm sorry —they have been bidding at tax sale on properties in Indianapolis and Elkhart. They have acquired properties in both Indianapolis, Elkhart and St. Joseph County when the properties were not redeemed. As I indicated, I have been involved in two sales of single - family property that they have acquired through the tax sale process. One of which was rehabbed prior to the sale, and the other which was sold to the purchaser with the understanding that the purchaser will be providing the rehabilitation and restoration of that property. Those were two in Elkhart County. Mr. Hunt asked if there was anyone else who wished to speak regarding Resolution No. 1550. JOSEPH GORNY: I am listed here as an owner of a vacant lot located in the 1200 Block of South Michigan. I don't own any property in the 1200 Block of South Michigan. I think what you are referring to is the 1100 Block, the address specifically would be 1107. Also, it is not a vacant lot. It is not taxed as a vacant lot. I am paying taxes on a not vacant lot. My HA H0ME\CPHIPPS \WPDATA \C0MMSM112197.MIN -27- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) g. continued.... concern is to acquire the property... (tape ran out) ... a radio tower and a junk yard for a construction company. I have a business there and I have been there for 30 years. This piece of property is a valuable piece of property to my business; it is an access off of South Michigan Street. I have been paying taxes on this property and I have kept the property up. I have no problems with future improvements or whatever. The problem that I have is to just come and take down three or four pieces of property and leave them vacant with no specific use whatsoever. Every time I talk to the Commission or the Redevelopment people, they have a different plan or they don't know or well we haven't gotten to that yet. I don't have a problem if you have a specific thing going in there or something, I can live with that, but what I can't live with is to just come and take peoples' property for supposedly future expansion. JOHN HOSINSKI: I know most of you people on the Commission. My name is John Hosinski, I am an at -large representative on the South Bend City Council. I am Chairman of the Zoning and Annexation Committee of that body. I have asked John Broden, one of my colleagues, to call a meeting of his Community and Economic Development Committee the week after Thanksgiving, and I am going to call a meeting of the Committee of Zoning and Annexation as H:\I TOME\CPHIPPS \WPDATA \COMMSN\ 112197.MIN -28- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) g. continued.... well at the same time to discuss actually our concerns with the specifics, which Mr. Gorny just alluded to—the 1100 Block of South Michigan Street, specifically the corner of Michigan and Garst. We have been aware through discussions with Mr. Gorny and one other individual who have concerns about their continued viability as a commercial enterprise, specifically Mr. Gorny in particular, who has an impeccable record of service in that area of the city and his own private investments. I am aware of numerous, substandard properties which Mr. Gorny has acquired at his own expense and demolished at his own expense in an effort to simply improve the neighborhood around where he has built his business. His business is the Gorny Plaza. While it has an address on South Main Street, the Plaza through his property to the immediate East of it has an entrance on to South Michigan Street. While I have not spoken directly with the diner owners at the immediate corner, in discussions with Mr. Gorny, I know that ultimately in a perfect world situation for him, they would like the opportunity to eventually continue an expansion of their commercial enterprise, eastward, through the entire half block of this property, as an expansion of the existing building which he has. The alley to the east of his building has already been vacated as part of work which was done when the Fire Department Credit Union relocated immediately south of his HAHOMETPHIPPS \WPDATATOMMSM 112197.MIN -29- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) g. continued.... building. I know at one point Mr. Gorny was looking to try to expand southward on to that property, but it was decided by powers other than he that lot would be better suited for the Credit Union. While that has been proven to be a nice relocation for that, it would seem that the overall development of the Ivy Tech campus, the Juvenile Justice Center facility and some of the other developments which are going on South Michigan Street. While it is a wonderful development, but to do all of this at the expense of any viable commercial development in that neighborhood, somewhat flies in the face of the second name of this Commission and the body of Community and Economic Development. We have serious concerns on the Council about the hamstringing of his business and the investment that he has made there and hamstringing his ability to viably grow. If anyone is familiar with the work, they have put a lot into their plaza on South Main. It is Mr. Gorny's intention, that has been communicated to certain Council members, that they would like to acquire the property immediately south of the lot they already own on Michigan Street so that they could, in fact, do further development of their own shopping plaza. I don't think there is anything in the concept of an expansion of their plaza as it is maintained around and designed that would in any way conflict with the not- for- profit enterprises that are either further HAHOMETPHIPPS \WPDATATOMMSM 112197.MIN -30- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) g. continued.... south on Michigan or the facilities located now across the street or are under construction across the street, to the east. At this point, I like to at least voice, as one Council member, what would seem presently to be somewhat unalterable opposition to the acquisition as planned. If anything, I would asked that the Commission consider tabling consideration of that particular parcel until such time that the two Committees of the Common Council have a chance to examine it further. Mr. Hunt asked if there was anyone else who wished to speak regarding Resolution No. 1550. STAN TOMASZEWSKI: I own the property on the corner of Garst and Michigan Street -1101 South Michigan. I really don't have any desire to leave that area you know. I am running a restaurant there. I have been there for approximately eleven years. I believe that the area needs a place to eat. I am already in the Studebaker Corridor. I don't know if the Studebaker Corridor is dead or what. Now you want to take this project and build another project. You want to leave Joe where he is and take me out. What are you guys up to? What are you going to do with that corner? I don't want to go. I just want you to know that it hurt my feelings hearing about this. I don't want to leave my area. I own that corner H:\ HOME\CPHIPPS \WPDATA \COMMSN\ 112197.MIN -31- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) g. continued.... property -1101 South Michigan and I want to stay. I have a business interest in it also. Mr. Hunt asked if there was anyone else who wished to speak regarding Resolution No. 1550. BLUIE MARKS: I live at 1123 South Michigan Street and also own 1115 South Michigan Street. I have been there for over twenty -two years. I have all my life invested in that place. I surely don't want to move, and I am fixing up the building next door. I am going to go ahead and renovate it and remodel it. There is no way I want to move. It not only has sentimental value, but I have all my life invested in that place. Mr. Hunt asked if there was anyone else who wished to speak regarding Resolution No. 1550. KEVIN BUTLER: I think when Kathy was speaking and used the words "speculation at a tax sale," I don't think that she intended that as a pejorative, but I think that it often times does have a pejorative sense. I just wanted to clear that up. The tax sale process is a statutory process and there are companies throughout the country that have gotten involved in the tax sale process. If the monies that they pay at the first step is ultimately redeemed, they of course do get HAHOME \CPHIPPS\WPDATA \COMMSN\l 12197.MIN -32- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) g. continued.... that back. However, if it is not redeemed, the County retains those monies and those monies are used to pay taxes that have not been paid by the owner. MRS. KOLATA: I would like to respond to a couple of the comments regarding the 1100 Block of South Michigan. Our intent is to acquire all of that quarter block and make it one piece of property as opposed to five separate lots, which is what it is right now and to assemble it into one piece of property for development. If we were to do that, we would put it up for disposition with specific requirements for the type and scale of development that we want to see. For the gentleman who commented that he is already in the Studebaker Corridor and now he is in another area, the Studebaker Corridor is a portion of this larger redevelopment area, and yes it is compatible with the type of development that we have been doing it that block. Mr. Gorny made reference to the fact that we have not had much in the way of new development down there. That is not the case, we have had a number of new buildings. Midwest Machine Products and Hydraulic Steam, right across the street from his plaza, just to name a couple. There have been a couple of other expansions down there and yes there is problem with one of the properties down on Lafayette looking like a junk yard, and we are aware of that and are working on it to get it taken care of. But H:\HObE\CPHIPPS \WPDATA \COMMSM 112197.MIN -33- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) g. continued.... there has not just been a radio tower and a junk yard in the Studebaker Corridor, there have been significant new developments on some of the lots that have been purchased. That does not mean to say that we have sold them all, there are still some industrial sites available for sale. MS. SCHWARTZ: Mr. Gorny you said that that is not a vacant lot. I must admit that in my recollection, I thought it was. What is located on the lot that is listed here? JOE GORNY: The city considers it to be taxed for improvements. MS. SCHWARTZ: Is it asphalted or something? MR. GORNY: Yes, it is a driveway. MS. SCHWARTZ: But there are no buildings there. MR. GORNY: No. MS. SCHWARTZ: Is the tax key number correct, do you know, on this list, even though it says vacant lot 1200 Block? MR. GORNY: I believe it is. MS. SCHWARTZ: But it is in the 1100 Block. HA H0ME\ CPHIPPS \WPDATA \C0MMSN\112197.MIN -34- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) g. continued.... Mr. Gorny nodded yes. MS. SCHWARTZ: Mr. Marks did you say that you live in one of the buildings? BLUIE MARKS: Yes I do, at 1123 S. Michigan. MS. SCHWARTZ: Is 1123 S. Michigan, the Palm Reader? And that is a house? BLUIE MARKS: Yes. MS. SCHWARTZ: Is a business located there as well? BLUIE MARKS: Yes. MS. SCHWARTZ: What is that business? BLUIE MARKS: Marks' General Engineering. MS. SCHWARTZ: What is it that you are planning to do with the building next door? BLUIE MARKS: I am going to remodel it and either have a laundromat there or rent it out as offices. MS. SCHWARTZ: Is there any business going on there right now? BLUIE MARKS: Yes, my warehouse for my engineering business. HAHOME \CPHIPPS\ WPDATA \COMMSN\ l 12197.MIN -35- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) g. continued.... MS. SCHWARTZ: Mr. Hosinski, that joint meeting of the two committees that you and Mr. Broden are going to be calling, will you be kind enough to invite the Commissioners to that, so that we can participate and hear the Council's issues and concerns? JOHN HOSINSKI: I will be happy to do that and it will be appropriate and I will appreciate that if your were to do so. A motion was made by Ms. Schwartz to table item 6.g. MRS. KOLATA: May I just say something before you take a vote. I know there are a couple of people on the list who are looking forward to moving forward that are not here today, but I can represent at least one. Bandito's Burritos is interested in moving forward with their acquisition. JOHN HOSINSKI: As to Mrs. Kolata's concerns, what I suggested, and I am not familiar enough with the Commission's own rules to know if by separation of this matter some of the properties could be added so that the partial tabling and the partial action could be taken today. The Council's only concern for tabling would be for the 1100 Block of South Michigan. MS. SCHWARTZ: What I was going to ask Mrs. Kolata is, if you could identify HAHOME \CPHIPPS \WPDATA \COMMSN\ l 12197.MIN -36- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) g. continued.... the properties that have not been objected to this morning, maybe we could, with legal counsel's approval, delete certain properties. ANNE BRUNEEL: If you amend the Exhibit B, I think you would need to re- advertise for the properties that you delete. If you do intend to re -open the public hearing I would suggest that you adopt the Resolution and delete the parcels that you do not want to take action on today and then at a later date re- advertise and include those in another Resolution. h. Commission approval requested for Resolution No. 1550 amending the Sample -Ewing Development Plan. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission amended Resolution No. 1550 by deleting parcels with the following key numbers: 18- 7026 -1031, 18- 8003 -0150, 18- 8003 -0152, 18 -8003- 0154, 18- 8003 -0151, and 18- 8003 -0153. A motion by Ms. Schwartz to adopt Resolution No. 1550, as amended, amending the Sample -Ewing Development Plan as amended with the exception of the tax key numbers 18- 7026 -1031, 18 -8003- 0150, 18- 8003 -0152, 18- 8003 -0154, 18- 8003 -0151, and 18- 8003 -0153. The intent of that motion is to move forward on acquisition on everything except the 1100 H:\ HOME \CPHIPPS \WPDATA \COMMSN\ 112197.MIN -37- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) h. continued.... Block of South Michigan and the one property in the 100 Block of East Broadway. The motion was seconded by Mr. Donoho and unanimously carried. i. Commission approval requested for Resolution No. 1551 relating to acquisition of property within the South Bend Central Development Area by Eminent Domain. Mrs. Kolata explained that this Resolution authorizes a purchase offer to be sent for the property located at 214 W. Jefferson Boulevard and sets a purchase price in that Resolution. The Resolution also authorizes the Director to send the offer and to proceed with Eminent Domain if an agreement cannot be reached on the purchase price. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1551 relating to acquisition of property within the South Bend Central Development Area by Eminent Domain. j. Commission approval requested for Resolution No. 1553 approving an application for personal property tax deduction for property located at 2930 Foundation Drive in the Airport Economic Development Area. (Eaton Corporation) H:\HOME\CPHIPPS \WPDATA \COMMSN\l 12197.MIN -38- COMMISSION ADOPTED RESOLUTION NO. 1550, AS AMENDED, AMENDING THE SAMPLE -EWING DEVELOPMENT PLAN WITH THE EXCEPTION OF THE TAX KEY NUMBERS 18- 7026 -1031, 18- 8003 -0150, 18- 8003 -0152, 18- 8003 -0154, 18- 8003 -0151, AND 18- 8003 -0153 COMMISSION ADOPTED RESOLUTION NO. 1551 RELATING TO ACQUISITION OF PROPERTY WITHIN THE SOUTH BEND CENTRAL DEVELOPMENT AREA BY EMINENT DOMAIN South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) j. continued.... Mike Beitzinger gave the staff report on this project. Eaton Corporation is a manufacturing industry. This facility forges parts for use in the truck manufacturing industry. This project is for the purchase and installation of new manufacturing equipment. The estimated project cost is $3,800,000. This project will increase the forging capacity of the South Bend facility and provide the equipment necessary to manufacture truck transmission parts using new technology. Per the petition, it is estimated that this project will create twenty -one (21) permanent jobs within the first year, representing a new annual payroll of $483,000 and will maintain 106 existing permanent full -time jobs representing an annual payroll of $3,336,000. A review of the tax abatements previously granted finds that Eaton Corporation has been granted three previous tax abatements. The first, a five year personal property abatement, was passed in October 1992, and the second and third a ten year real property and a five year personal property abatement were passed in December 1994. 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 designation areas find that the property is located in the Airport Economic H:\IiOME\CPHIPPS\WPDATA\COMMSN\I 12197.MIN -39- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) j. continued.... Development Area, which is a Tax Incremental Allocation Area, therefore, the petition for personal property tax abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that Eaton Corporation meets the qualifications for a five year personal property tax abatement. Using the project cost of $3,800,000, the taxes generated are $352,193. Taxes abated total approximately $289,742. Taxes still paid with the abatement total approximately $62,451. Jim Seaver of the Eaton Corporation stated that they are in the growth state again. Part of our "mother" plant in Ohio was sold to Dana Corporation, so now we have to take over a volume shift to support the transmission business that Eaton Corporation maintains. We also have an opportunity to enhance our growth ability with some new technology. Mr. Hunt asked Mr. Seaver if he knows what the life expectancy of the equipment is. Mr. Seaver stated that the equipment can last for a long time. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1553 approving an application for personal property tax deduction for property located at 2930 Foundation Drive H:\ HOME\ CPHIPPS \WPDATA \COMMSN\I12197.MIN -40- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) j. continued.... in the Airport Economic Development Area. (Eaton Corporation) k. Commission approval requested for Resolution No. 1554 relating to acquisition of property within the Sample -Ewing Development Area by Eminent Domain. Mrs. Kolata stated that this Resolution authorizes the Director to send a purchase offer and proceed with Eminent Domain if an agreement cannot be reached. The two properties being purchased are Abe's Plumbing and Bandito's Burritos. All of the appraisals have been completed and reviewed. Upon a motion by Ms. Auburn, seconded Mr. Donoho unanimously carried, the Commission adopted Resolution No. 1554 relating to acquisition of property within the Sample -Ewing Development Area by Eminent Domain. 1. Commission approval requested for Resolution No. 1555 determining to appropriate monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 1998, and ending December 31, 1998, including all outstanding claims and obligations, fixing a time when the same shall take effect. H :M0Nffi \CPHIPPS \WPDATA \C0MMSN\1 12197.MIN 41- COMMISSION ADOPTED RESOLUTION NO. 1553 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2930 FOUNDATION DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (EATON CORPORATION) COMMISSION ADOPTED RESOLUTION NO. 1554 RELATING TO ACQUISITION OF PROPERTY WITHIN THE SAMPLE -EWING DEVELOPMENT AREA BY EMINENT DOMAIN South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) 1. continued.... Mrs. Kolata stated that this is the budget for the Blackthorn Golf Course for 1998. This Resolution sets a public hearing on the appropriation for Friday, December 19, 1997 at 10:00 a.m. and authorizes the Director to publish a Notice of Public Hearing. The budget for 1998 is proposed to have total income of $1,448,683. The operating expenses total $1,056,929, leaving $391,754 as operating income. There will be $381,000 for debt service with a net operating income of $10,754. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1555 determining to appropriate monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 1998, and ending December 31, 1998, including all outstanding claims and obligations, fixing a time when the same shall take effect. m. Commission approval requested for Resolution No. 1556 accepting the transfer of real property from the South Bend Redevelopment Authority. Mrs. Kolata stated that this is a Resolution to accept from the Redevelopment Authority 10 acres of land in the Blackthorn Corporate Park. H :\HOME\ \CPHIPPS \WPDATA \COMMSMI 12197.MIN -42- COMMISSION ADOPTED RESOLUTION NO. 1555 DETERMINING TO APPROPRIATE MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING JANUARY 1, 1998, AND ENDING DECEMBER 31, 1998, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) m. continued.... This is the property that the Commission is selling to Murdoch, Coll and Lillibridge for construction of a new office building. It includes the eight acre building site, plus the two acres for expansion. The Commission will only deed over the eight acres and will hold on to the remaining two acres until the company is ready to expand. The bonds related to all 10 acres will be defeased. Upon a motion by Ms. Schwartz, seconded by Ms. Auburn and unanimously carried, the Commission adopted Resolution No. 1556 accepting the transfer of real property from the South Bend Redevelopment Authority. n. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 119 East Elm. (Housing Development Corporation) Mrs. Kolata noted this Certificate of Waiver forgives $850.00 as of October 1, 1997. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 119 East Elm. (Housing Development Corporation) H:\HOME\CPHIPPS \WPDATA \COMMSN\I 12197.MIN -43- COMMISSION ADOPTED RESOLUTION NO. 1556 ACCEPTING THE TRANSFER OF REAL PROPERTY FROM THE SOUTH BEND REDEVELOPMENT AUTHORITY COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 119 EAST ELM. (HOUSING DEVELOPMENT CORPORATION) South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) o. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 743 N. Blaine. (Housing Development Corporation) Mrs. Kolata noted this Certificate of Waiver forgives $750.00 as of October 1, 1997. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 743 N. Blaine. (Housing Development Corporation) p. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 1008 California. (Alfonso Cardenas and John Grusczynski) Mrs. Kolata noted this Certificate of Waiver forgives $750.00 as of September 15, 1997. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 1008 California. (Alfonso Cardenas and John Grusczynski) H:\ HOME\\ CPHIPPS \WPDATA \COMMSN\112197.MIN -44- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 743 N. BLAINE (HOUSING DEVELOPMENT CORPORATION) COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 1008 CALIFORNIA. (ALFONSO CARDENAS AND JOHN GRUSCZYNSKI) South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) q. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 908 and 908 V2 South Bend Avenue. (Neighborhood Housing Services) Mrs. Kolata noted this Certificate of Waiver forgives $1,600 as of January 27, 1997. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 908 and 908 1/2 South Bend Avenue. (Neighborhood Housing Services) r. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 916 South Bend Avenue. (Neighborhood Housing Services) Mrs. Kolata noted this Certificate of Waiver forgives $850.00 as of January 27, 1997. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 916 South Bend Avenue. (Neighborhood Housing Services). HAHOME \CPHIPPS \WPDATA \COMMSN\l 12197.MIN -45- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 908 AND 908'/2 SOUTH BEND AVENUE. NEIGHBORHOOD (HOUSING SERVICES) COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 916 SOUTH BEND AVENUE (NEIGHBORHOOD HOUSING SERVICES) . South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) s. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 920 South Bend Avenue. (Neighborhood Housing Services) Mrs. Kolata noted this Certificate of Waiver forgives $850.00 as of January 27, 1997. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 920 South Bend Avenue. (Neighborhood Housing Services). t. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 922 South Bend Avenue. (Neighborhood Housing Services) Mrs. Kolata noted this Certificate of Waiver forgives $850.00 as of January 27, 1997. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 922 South Bend Avenue. (Neighborhood Housing Services). HAH0ME\CPH PPS \WPDATA \COMMSN\l12197.MIN -46- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 920 SOUTH BEND AVENUE (NEIGHBORHOOD HOUSING SERVICES) COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 922 SOUTH BEND AVENUE (NEIGHBORHOOD HOUSING SERVICES) South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) u. Staff report on acquisition of property in the Sample -Ewing Development Area. Mrs. Kolata stated that one counter offer was received from Richard Voss for property located at 730 and 732 E. Wenger St. The original purchase price for the wo properties was $33,000. The staff recommends accepting the counter offer in the amount of $78,000. Mrs. Kolata commented that the counter offer suggests that Mr. Voss be paid $78,000 that would include both the property that has the duplex and the vacant lot. This amount would include all of his relocation cost, (replacement housing payment) of $22,000 and all moving costs. The owner will pay all real estate taxes, liens and judgements against the property. Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Commission accepted the counter offer from Richard Voss in the amount of $78,000 for property located at 730 and 732 E. Wenger Street. This amount includes all of his relocation cost, (replacement housing payment of $22,000) and all moving costs. Owner will pay all real estate taxes, liens and judgements against the property. v. Commission approval requested for Resolution No. 1558 approving the fair re -use value of property in the Airport Economic Development Area. HAH0N E\ CPHIPPS \WPDATA \COMMSN\112197.MIN -47- COMMISSION ACCEPTED THE COUNTER OFFER FROM RICHARD VOSS IN THE AMOUNT OF $78,000 FOR PROPERTY LOCATED AT 730 AND 732 E. WENGER STREET. THIS AMOUNT INCLUDES ALL OF HIS RELOCATION COST, (REPLACEMENT HOUSING PAYMENT OF $22,000) AND ALL MOVING COSTS. THE OWNER WILL PAY ALL REAL ESTATE TAXES, LIENS AND JUDGEMENTS AGAINST THE PROPERTY • " J South Bend Redevelopment Commission Regular Meeting - November 21, 1997 6. NEW BUSINESS (CONT.) v. continued.... Mrs. Kolata explained that this Resolution states that this property has been appraised and reviewed and is being offered for re- use. The property is 17.79 acres located at the Toll Road and the Bypass. This piece of property was acquired from the Indiana Toll Road. The intent for this property is for Industrial use. The minimum purchase price for the entire site is $118,350. On the bid specifications and the design consideration, all plans must be approved by the Design Review coordinator. The project must be started within one year of award and completed within two years. The land may be sold on a prorated basis. The Commission will place a restriction on the property that no new outdoor advertising signs be placed on the property. (There are currently two outdoor advertising signs on the property.) The minimum purchase price is based on the unimproved lot, if the lot should be improved, then the purchase price will increase. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1558 approving the fair re -use value of property in the Airport Economic Development Area. H:\ HOME\ CPHIPPS \WPDATA \COMMSN\112197.MIN -48- COMMISSION ADOPTED RESOLUTION NO. 1558 APPROVING THE FAIR RE -USE VALUE OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA t 4 a South Bend Redevelopment Commission Regular Meeting - November 21, 1997 7. PROGRESS REPORTS Mike Dobson of B & R Oil Company and Dick Best of Best Concepts were both present at the Redevelopment Commission meeting. Mike Dobson presented drawings to the Commission. He stated that they are interested in developing a piece of property into a retail service facility located at the northwest corner of Sample and Main Streets in the Studebaker Corridor. This will be a restaurant facility with a convenience store that sells gasoline. Mike Dobson presented pictures of a similar facility located on Lincolnway West that they own. This facility will employ approximately fifty people with an annual payroll of approximately $800,000. The Commission thanked Mr. Dobson and Mr. Best for coming to the meeting. Mrs. Kolata noted that the landscaping on Dean Johnson Boulevard and Ohio Street has been completed. The Old Fort project is now under construction on South Lafayette. Robertson's has 30 approved tenants. The move -in date is anticipated to be in December 1997. The Chapin Street market building is coming along well and is expected to open in mid December. Ms. Schwartz noted the death of Mrs. Gwen Striver, a well known community leader. 8. NEXT COMMISSION MEETING: The next Regular Meeting of the NEXT COMMISSION MEETING Redevelopment Commission is scheduled for December 5, 1997 at 10:00 a.m. H:\IIOMfi\ CPHIPPS \WPDATA \COMMSN\112197.MIN -49- South Bend Redevelopment Commission Regular Meeting - November 21, 1997 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Ms. Auburn made a motion that the meeting be adjourned. Mr. Donoho seconded the motion and the meeting was adjourned at 11:45 a.m. 0 z U Robert W. Hunt, President ADJOURNMENT Ann E. Kolata, Director HA HOMETPHIPPS \WPDATATOMMSN\112197.MIN -50-