HomeMy WebLinkAboutRM 12-19-971��
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71
SOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
December 19, 1997
9:30 a.m.
Presiding: Robert W. Hunt, President
1. ROLL CALL
1308 County -City Building
227 West Jefferson Boulevard
South Bend, Indiana
Members Present: Mr. Robert W. Hunt, President
Mr. Michael Donoho, Vice - President
Ms. 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
Mr. Jon R. Hunt, Director of Community & Econ. Dev.
Ms. Vangelean Urbanski, Recording Secretary
Ms. Cheryl Phipps, Administrative Assistant
Mr. James Riggs, Economic Development Specialist
Ms. Amy Tweeten, Economic Development Specialist
Business Assistance: Mr. Michael Beitzinger, Economic Development Specialist
Ms. Nancy Van Scoyk, Economic Development Specialist
Others: Mr. John O'Brien
Mr. Stan Blenke
Mr. Eric Johnson
Mr. Brad Toothaker
Ms. Sheryl Litell
Mr. Jim Metheny
Mr. Jack Young
Mr. Steve Ellison
Mr. Pat Sibley
Mr. John Gould
Mr. Jim Cierzniak
Mr. Dale Archer
Mr. Pat Billey
Mr. Ron Radecki
F:\IiOME\CPHIPPS\WPDATA\COMMSN\121997.MEN
-1-
IN
South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
Mr. Bipin Doshi
Mr. Joe Zaleski, Meadowbrook Golf
Mr. Brian Godfrey, Blackthorn Golf Course
Mr. John Quicksted, Blackthorn Golf Course
Mr. Jack Quimby, Blackthorn Golf Course
Mr. Greg Kil
2. APPROVAL OF MINUTES
a. Commission approval of the Minutes of
the Regular Meeting of December 5,
1997.
Upon a motion by Ms. Auburn, seconded
by Mr. Donoho and unanimously carried,
the Commission approved the Minutes of
the Regular Meeting of December 5, 1997.
3. APPROVAL OF CLAIMS
COMMISSION APPROVED THE MINUTES OF THE
REGULAR MEETING OF DECEMBER 5, 1997
Redevelopment Commission Claims submitted December 19, 1997, for approval.
212 CDBG COMMUNITY DEVELOPMENT
360 Communication
Gene's Camera Store
Business Systems Inc.
United Limo, Inc.
Ameritech
Michiana Board Up Services
York Title & Escrow, Inc.
South Bend Water Works
South Bend Tribune
South Bend Tribune
Tri County News, Inc.
Tri County News, Inc.
Transpo
F:\HOME\CPHEPPS\WPDATA\COMMSN\121997.MIN
-2-
$81.40
$15.89
$42.49
$158.87
$26.28
$230.00
$50.00
$15.30
$32.63
$29.53
$35.69
$39.53
$150.00
South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
3. APPROVAL OF CLAIMS (CONT.)
324 FUND
Interfund Transfer
Interfund Transfer
Landscapes Unlimited
R & R Excavating
Indiana Business Magazine
Underground Services
Heptagon
Heptagon
J. F. New & Associates, Inc.
J. F. New & Associates, Inc.
Ken Herceg & Associates, Inc.
Cole Associates Inc.
414 SAMPLE -EWING FUND
York Title & Escrow, Inc.
Rieth Riley Construction Co.
Gerald Pope
Rieth Riley Construction Co.
HRP Construction
Grauvogel & Associates
American Electric Power
American Electric Power
Cole Associates, Inc.
American Electric Power
St. Joseph County Treasurer
Ola L. Williams
420 SBCDA GENERAL ACCOUNT
Rose Exterminator Co.
General Fund
W.W. Grainger
G. W. Berkheimer
Femco, Inc.
N.I.P.S.C.O.
Superior Waste System
Ameritech Indiana
Superior Waste Systems
F:\IiONM\CPHWPS\WPDATA\COMMSN\121997.MIN -3-
$180,500.00
$6,481.00
$7,500.00
$334,248.53
$2,010.25
$171,000.00
$437.50
$8,555.34
$850.00
$600.00
$5,325.00
$1,673.75
$50.00
$1,060.16
$950.00
$2,444.84
$5,687.72
$360.00
$2,297.16
$6.65
$5,418.50
$263.72
$4.82
$870.18
$40.00
$58,500.00
$124.97
$13.16
$64.22
$57.46
$65.80
$17,247.50
$65.80
South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
420 SBCDA GENERAL ACCOUNT
South Bend Water Works
N.I.P.S.C.O.
American Electric Power
American Electric Power
Robert Bradley Associates, LLC
Robert Bradley Associates, LLC
Robert Bradley Associates, LLC
Upon a motion by Mr. Donoho, seconded by
Ms. Auburn and carried, the Commission
approved the Claims submitted December 19,
1997, and ordered the checks to be released.
Ms. Schwartz abstained.
4. COMMUNICATIONS
Ms. Kolata stated that there are
Communications that pertain to the Public
ANN
Hearing and they will be presented later in the
meeting.
5. OLD BUSINESS
There was no Old Business.
6. NEW BUSINESS
a. Commission approval requested for
Resolution No. 1560 approving an
application for personal property tax
deduction for property located in the
Sample -Ewing Development Area.
(Schafer Gear Works, Inc.)
Nancy Van Scoyk gave the staff report on
the project.
F:\IiOME\CPHIPPS\WPDATA\COMMSN\121997.MIN
-4-
$209.18
$471.60
$286.88
$10.02
$496.45
$891.88
$489.93
COMMISSION APPROVED THE CLAIMS SUBMITTED
DECEMBER 19, 1997, AND ORDERED THE CHECKS
TO BE RELEASED
THERE WAS NO OLD BUSINESS
South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
a. continued....
Schafer Gear Works, Inc. is a
manufacturer of gears and machine parts
to customer specifications. Their project
calls for the purchase of a CNC Thread
Grinder, Vertical Broaching Machine,
CNC Hobbing Machine, 2 Axis Lathe with
Bar and Subspindle, 2 Axis Lathe with
Autoload, 4 Axis Lathe with Barfeed, and
O.D. Grinder with Autoload. This
equipment will be an addition to existing
equipment and is required due to
continued customer growth. The total cost
of the project is estimated at $1,860,000.
Per the petition, it is estimated that this
project will create ten (10) permanent jobs
within the first year, representing a new
annual payroll of $250,000 and will
maintain 90 existing permanent full -time
jobs and no part-time jobs representing an
annual payroll of $2,800,000. A review of
the tax abatements previously granted
finds that Schafer Gear Works, Inc. has
been granted four previous tax abatements.
Schafer Gear Works, Inc. is in compliance
with the reporting requirements for each of
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
Sample -Ewing Development Area, which
is a Tax Incremental Allocation Area,
therefore, the petition for personal
property tax abatement must first be
F:\ Ii OME\ CPiHPPS \WPDATA \COMMSN\121997.MIN -5-
South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
a. continued....
approved by the South Bend
Redevelopment Commission. A review of
the Tax Abatement Ordinance finds that
Schafer Gear Works, Inc. meets the
qualifications for a five year personal
property tax abatement.
Using the project cost of $1,860,000, the
taxes generated over the five year period
are $172,903. Taxes abated total
approximately $142,244. Taxes still paid
with the abatement total approximately
$30,659.
Stan Blenke of Schafer Gear Works, Inc.
stated that when the company started in
1988, it employed approximately fifty
people. As of today, Schafer Gear Works,
Inc. has 90 employees and plans to add a
minimum of 10 employees in 1998.
Since 1988, Schafer Gear Works, Inc.
added $10 million in new equipment and
building additions. Schafer Gear Works,
Inc. is proud of its track record as it
continues to grow and 1998 is no
exception —it looks very good. The new
equipment that Schafer Gear Works, Inc.
is petitioning for today already has orders
in -house from its customers.
Robert Hunt asked Mr. Blenke if the
equipment that previously received
abatement is still in use. Mr. Blenke
responded that the equipment is still in
operating condition and is being used.
F:M OMElCPHIPPS \WPDATA \COMMSM121997.MIN -6-
South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
a. continued....
Ms. Schwartz commented that she is
impressed with the substantial
employment growth of Schafer Gear
Works, Inc. She asked Mr. Blenke if
Schafer Gear Works, Inc. is planning to
hire highly skilled workers.
Mr. Blenke responded that Schafer Gear
Works, Inc. is looking for highly skilled
machinists but they are extremely difficult
to find in this area. The wages for highly
skilled machinists are approximately $10
to $14 an hour. Schafer Gear Works, Inc.
has set up an internal training program and
corresponds with Ivy Tech to find people
with these technical skills.
Upon a motion by Ms. Auburn, seconded
by Mr. Donoho and unanimously carried,
the Commission adopted Resolution
No. 1560 approving an application for
personal property tax deduction for
property located in the Sample -Ewing
Development Area. (Schafer Gear Works,
Inc.)
b. Commission approval requested for
Agreement for the Lease and
Development of Real Property within
the South Bend Central Development
Area. (SBCC Development
Corporation)
Mrs. Kolata stated that this is a lease with
the South Bend Chocolate Company
Development Corporation for the Center
F:U iOME\CPHIPPS \WPDATA \COMMSM121997.MIN -7-
COMMISSION ADOPTED RESOLUTION NO. 1560
APPROVING AN APPLICATION FOR PERSONAL
PROPERTY TAX DEDUCTION FOR PROPERTY
LOCATED IN THE SAMPLE -EWING DEVELOPMENT
AREA (SCHAFER GEAR WORKS, INC.)
South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
b. continued....
City Associates building. This is a 20-
year lease with two, five -year renewals at
a rental rate of $2,500 per year. SBCC
Development Corporation is obligated to
complete two Phases of its proposed
project before it can receive a Certificate
of Completion. Phase I is the
development of its Chocolate Concept
Store on the first floor. Phase II is the
completion of the other retail spaces
located on the first floor. SBCC
Development Corporation also has within
its lease, a Phase III, which is the
development of the upper floors into office
space. SBCC Development Corporation
will receive a Certificate of Completion
from the Redevelopment Commission
once Phases I and II are completed. The
completion of Phase III is not a
requirement in order for SBCC
Development Corporation to receive the
Certificate of Completion. Phase I and II
also include facade work to the north side
of the building, where the store fronts will
be cut into the building.
Upon a motion by Ms. Schwartz, seconded
by Mr. Donoho and unanimously carried,
the Commission approved the Agreement
for the Lease and Development of Real
Property within the South Bend Central
Development Area. (SBCC Development
Corporation)
F:\ HOME\ CPHIPPS \WPDATA \COMMSN\121997.MIN -8-
COMMISSION APPROVED THE AGREEMENT FOR
THE LEASE AND DEVELOPMENT OF REAL
PROPERTY WITHIN THE SOUTH BEND CENTRAL
DEVELOPMENT AREA. (SBCC DEVELOPMENT
CORPORATION)
South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
c. Staff report on proposals to provide
Real Estate Marketing Services in the
South Bend Central Development Area,
Sample -Ewing Development Area, and
Airport Economic Development Area
(excluding the Blackthorn Corporate
Park)
d. Staff report on proposals to provide
Real Estate Marketing Services in the
Blackthorn Corporate Park.
CB Commercial /Robert Bradley
Associates and Stone Real Estate Group
presented proposals at the December 5,
1997, Redevelopment Commission
meeting and representatives from both of
these companies were present at the
meeting today. Mrs. Kolata noted that
individual meetings were held with CB
Commercial/Robert Bradley Associates
and Stone Real Estate Group after the
December 5 meeting to further discuss
each company's proposal.
Mrs. Kolata noted that the staff included in
the request for proposals retail space in the
parking garage fronting on Michigan
Street, part of the Leighton Plaza project.
When the request for proposals was sent
out, the intent was for both leasing of the
retail space and for property management
but this was not made clear in the request
for proposals. The staff now recommends
excluding the retail space from these
proposals. We are recommending that a
new request for proposal be sent out to
both firms that includes the retail space in
F:\ HOME\ CPHWPS \WPDATA \COMMSN\121997.MIN -9-
South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
d. continued....
the new garage and also covers the other
retail spaces that are currently in the
downtown area — Palais Royale, Wayne
Garage and the Osco building. Mrs.
Kolata commented that a number of leases
with the Commission expire in 1998. The
request for proposals would deal with
property management of these retail
spaces as well as marketing.
The staff recommended that the proposal
from the Stone Real Estate Group be
accepted for Real Estate Marketing
Services in the South Bend Central
Development Area, Sample -Ewing
Development Area, and Airport Economic
Development Area (excluding the
Blackthorn Corporate Park). The staff
also recommended accepting the proposal
from the Stone Real Estate Group to
provide Real Estate Marketing Services in
the Blackthorn Corporate Park. The staff
felt that CB Commercial/Robert Bradley
Associates and Stone Real Estate Group
are both excellent companies and both
submitted strong proposals. Ms. Auburn
commented that the Commission was
impressed with both companies and could
not go wrong with either company.
Upon a motion by Mr. Donoho, seconded
by Ms. Auburn and carried, the
Commission accepted the proposal from
Stone Real Estate Group to provide Real
Estate Marketing Services in the South
Bend Central Development Area, Sample-
F:\ HOME\ CPHIPPS \WPDATA \COMMSN\121997.MIN -10-
South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
d. continued....
Ewing Development Area, and Airport
Economic Development Area (excluding
the Blackthorn Corporate Park and
excluding any downtown retail space).
Ms. Schwartz abstained.
Upon a motion by Mr. Donoho, seconded
by Ms. Auburn and carried, the
Commission accepted the proposal from
Stone Real Estate Group to provide Real
Estate Marketing Services in the
Blackthorn Corporate Park. Ms. Schwartz
abstained.
e. Commission approval requested for
proposal for fencing at 701 E.
Pennsylvania in the Sample -Ewing
Development Area.
Mrs. Kolata stated that this is the old
Wenger Homestead property and it has
been boarded up. When the property was
acquired, there was part of a chain link
fence surrounding it but it was in poor
condition. The staff recommended having
a temporary chain link fence constructed at
701 E. Pennsylvania to protect the
property.
Two proposals were received. The first
proposal received is from Cal -Pro in the
amount of $625 and the second proposal
received is from Schuell Fence in the
amount of $1,856. Schuell Fence
Company cannot construct a temporary
F:\ HOME\CPHTPS \WPDATA \COMMSN\121997.MIN _11-
COMMISSION ACCEPTED THE PROPOSAL FROM
STONE REAL ESTATE GROUP TO PROVIDE REAL
ESTATE MARKETING SERVICES IN THE SOUTH
BEND CENTRAL DEVELOPMENT AREA, SAMPLE -
EWING DEVELOPMENT AREA, AND AIRPORT
ECONOMIC DEVELOPMENT AREA (EXCLUDING
THE BLACKTHORN CORPORATE PARK AND ANY
DOWNTOWN RETAIL SPACE)
COMMISSION ACCEPTED THE PROPOSAL FROM
STONE REAL ESTATE GROUP TO PROVIDE REAL
ESTATE MARKETING SERVICES IN THE
BLACKTHORN CORPORATE PARK
South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
e. continued....
fence, it must be permanent. The staff
recommended accepting the proposal from
Cal -Pro Company in the amount of
$625.00 for fencing at 701 E.
Pennsylvania.
Upon a motion by Mr. Donoho, seconded
by Ms. Schwartz and unanimously carried,
the Commission accepted the proposal
from Cal -Pro in the amount of $625 for
fencing at 701 E. Pennsylvania in the
Sample -Ewing Development Area.
f. Commission approval requested for
Loan and Grant in connection with the
Affordable Loan Program for property
located at 1817 Fassnacht. (Frances M.
Smith)
Mrs. Kolata noted that the loan to Frances
M. Smith is in the amount of $5,500 at 0%
interest for 10 years with monthly
payments of $45.83. The grant is in the
amount of $2,307.25.
Upon a motion by Mr. Donoho, seconded
by Ms. Auburn and unanimously carried,
the Commission approved the Loan and
Grant in connection with the Affordable
Loan Program for property located at 1817
Fassnacht. (Frances M. Smith)
g. Commission approval requested for
Loan and Grant in connection with the
Affordable Loan Program for property
located at 2010 S. Kendall St. (Matilda
F:\ HOME\ CPHIPPS \WPDATA \COMMSN\121997.MIN -12-
COMMISSION ACCEPTED THE PROPOSAL FROM
CAL -PRO IN THE AMOUNT OF $625 FOR FENCING
AT 701 E. PENNSYLVANIA IN THE SAMPLE -EWING
DEVELOPMENT AREA
COMMISSION APPROVED THE LOAN AND GRANT
IN CONNECTION WITH THE AFFORDABLE LOAN
PROGRAM FOR PROPERTY LOCATED AT 1817
FASSNACHT. (FRANCES M. SMITH)
South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
g. continued....
Fekete)
Mrs. Kolata noted that the loan to Matilda
Fekete is in the amount of $2,640 at 0%
interest for 10 years with monthly
payments of $23.75. The grant is in the
amount of $2,850.
Ms. Schwartz questioned why there was
no "As Is" value on the Loan and Grant
information sheets. Mrs. Kolata said she
would find out and get a report back to the
Commission.
Upon a motion by Ms. Schwartz, seconded
by Mr. Donoho and unanimously carried,
the Commission approved the Loan and
Grant in connection with the Affordable
Loan Program for property located at 2010
S. Kendall. St. (Matilda Fekete)
h. Commission approval requested for
Loan and Grant in connection with the
Affordable Loan Program for property
at 229 E. Dubail. (Marsha Reaves)
Mrs. Kolata asked permission to table item
61. There was no objection and item 6.h.
was tabled.
i. Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property located at 1813 West Linden.
(Housing Development Corporation)
F:\HOMIE\CPHWPS\WPDATA\COMMSN\121997.MIN -13-
COMMISSION APPROVED THE LOAN AND GRANT
IN CONNECTION WITH THE AFFORDABLE LOAN
PROGRAM FOR PROPERTY LOCATED AT 2010 S.
KENDALL. ST. (MATILDA FEKETE)
ITEM 6.H. WAS TABLED
South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
i. continued....
Mrs. Kolata noted that this Certificate of
Waiver forgives $526.50 as of October 18,
1997.
Upon a motion by Ms. Schwartz, 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 1813 West Linden. (Housing
Development Corporation)
j. Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property located at 901, 905 and 909
Lincolnway West. (Housing
Development Corporation)
Mrs. Kolata noted that this Certificate of
Waiver forgives $4,500 as of May 30,
1997.
Upon a motion by Ms. Schwartz, 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 901, 905 and 909 Lincolnway West.
(Housing Development Corporation)
k. Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property located at 423 Arthur.
(Northern Oak Homes, Inc.)
F:\ HOME\CPHWPS \WPDATA \COMMSN\121997.MIN -14-
COMMISSION APPROVED THE CERTIFICATE OF
WAIVER IN CONNECTION WITH THE RENTAL
REHAB LOAN PROGRAM FOR PROPERTY LOCATED
AT 1813 WEST LINDEN. (HOUSING DEVELOPMENT
CORPORATION)
COMMISSION APPROVED THE CERTIFICATE OF
WAIVER IN CONNECTION WITH THE RENTAL
REHAB LOAN PROGRAM FOR PROPERTY LOCATED
AT 901,905 AND 909 LINCOLNWAY WEST.
(HOUSING DEVELOPMENT CORPORATION)
South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
k. continued....
Mrs. Kolata noted that this Certificate of
Waiver forgives $750 as of October 2,
1997.
Upon a motion by Ms. Schwartz, 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 423 Arthur. (Northern Oak Homes,
Inc.)
1. Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property located at 617 N. Cushing.
(Leo R. And Cleora Kelsch)
Mrs. Kolata noted that this Certificate of
Waiver forgives $533.20 as of August 15,
1997.
Upon a motion by Ms. Schwartz, 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 617 N. Cushing. (Leo R. and Cleora
Kelsch)
m. Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property located at 619 N. Cushing.
(Leo and Cleora Kelsch)
F:\HOUE\CPHIPPS\WPDATA\COMMSN\121997.MM -15-
COMMISSION APPROVED THE CERTIFICATE OF
WAIVER IN CONNECTION WITH THE RENTAL
REHAB LOAN PROGRAM FOR PROPERTY LOCATED
AT 423 ARTHUR. (NORTHERN OAK HOMES, INC.)
COMMISSION APPROVED THE CERTIFICATE OF
WAIVER IN CONNECTION WITH THE RENTAL
REHAB LOAN PROGRAM FOR PROPERTY LOCATED
AT 617 N. CUSHING. (LEO R. AND CLEORA
KELSCH)
South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
m. continued....
Mrs. Kolata noted that this Certificate of
Waiver forgives $750 as of September 18,
1997.
Upon a motion by Ms. Schwartz, 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 619 N. Cushing. (Leo and Cleora
Kelsch)
n. Commission approval requested for
proposal from Cole Associates for
professional services in the Sample -
Ewing Development Area.
Mrs. Kolata explained that this proposal is
to look at alternative fencing materials for
the new St. Joseph County Jail site located
at Sample and Lafayette Streets. The new
St. Joseph County Jail site has some
perimeter security issues. The staff
recommended that an alternative fence be
constructed on the exterior of this site,
particularly fronting on Lafayette Street,
for appearance reasons. Cole Associates
will determine what the guidelines are for
the detention facility and what type of
perimeter fencing design alternatives and
landscaping can be used. The City has an
agreement with the County that the City
will pay for any additional costs related to
designing an alternative fence than what
the County originally planned to spend.
The cost to the City is not -to- exceed
F:\ HOME\CPHWPS \WPDATA \COMMSN\121997.MIN -16-
COMMISSION APPROVED THE CERTIFICATE OF
WAIVER IN CONNECTION WITH THE RENTAL
REHAB LOAN PROGRAM FOR PROPERTY LOCATED
AT 619 N. CUSHING. (LEO AND CLEORA KELSCH)
South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
n. continued....
$4,800 for the design of the alternative
fence.
Upon a motion by Ms. Auburn, seconded
by Mr. Donoho and unanimously carried,
the Commission accepted the proposal
from Cole Associates for professional
services in the Sample -Ewing
Development Area.
o. Commission approval requested for
1998 fees for Blackthorn Golf Course.
Mrs. Kolata explained that the 1998 fees
for the Blackthorn Golf Course had been
reviewed by the Blackthorn Joint Advisory
Committee with a favorable
recommendation. There is a $1 resident
rate increase for Monday through
Thursday. The non - resident rate has
decreased and is now the same price as the
resident rate for Monday through
Thursday. The weekend rate is the same
rate as it was in 1997 —$35 for resident
and $47 for non - resident; the weekend has
been expanded to include Friday, Saturday
and Sunday. There are different fees
scheduled for twilight golf and for nine
holes of golf. The cart fee rate remains at
$12.
Joe Zaleski explained that the strategies
for changing the rates is because Friday
has been the most productive day; there is
approximately 65 percent resident
participation on Monday through
F:\ HOME\ CPHIPPS \WPDATA \COMMSM]21997.MIN -17-
COMMISSION ACCEPTED THE PROPOSAL FROM
COLE ASSOCIATES FOR PROFESSIONAL SERVICES
IN THE SAMPLE -EWING DEVELOPMENT AREA
South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
o. continued....
Thursday; and the reason for lowering the
non - resident rate is to be more attractive to
non - resident players. Mrs. Kolata asked if
the total rounds for 1997 have been
projected. Mr. Zaleski responded that the
total rounds for 1997 is approximately
30,000.
Upon a motion by Ms. Schwartz, seconded
by Mr. Donoho and unanimously carried,
the Commission approved the 1998 fees
for Blackthorn Golf Course.
10:00 a.m.
p. Public Hearing on Resolution No. 1557.
Mrs. Kolata announced that it was now
10:00 a.m. and the public hearing could
begin.
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
December 5, 1997.
Mrs. Kolata explained that Resolution
No. 1557 adopts the budget for Blackthorn
Golf Course for 1998 for the fiscal and
calendar year. The budget was constructed
based on the 1998 fees for the Blackthorn
Golf Course. The total income proposed
F:\ HOME\ CPHIPPS \WPDATA \COMMSN\121997.MIN -18-
COMMISSION APPROVED THE 1998 FEES FOR
BLACKTHORN GOLF COURSE
South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
p. continued....
is $1,448,673, expenses are $1,056,929,
debt service is $381,000 leaving a net
operating income of $10,754. Mrs. Kolata
commented that Blackthorn Golf Course
has met its budget every year and has been
able to pay its debt service from income
earned at the golf course. When the bond
issue was completed for the Blackthorn
Golf Course, the plan was to use golf
course revenues then land sale proceeds;
and, as a follow -up, tax increment finance
if it was needed to make the debt service
payment, but that hasn't been necessary.
All debt service payments have been made
from Blackthorn Golf Course operating
income. This budget was reviewed by the
Advisory Committee in November 1997
and the budget was recommended for
approval by the Redevelopment
Commission.
Mr. Hunt opened the public hearing for
anyone who wished to speak.
JIM CIERZNIAK: I live at 1156 E.
Victoria Street. I would just like to
congratulate the Meadowbrook people and
the Redevelopment people for running a
very successful operation. Was it a
$300,000 operational profit for the year as
I recall?
JOE ZALESKI: Actually we're closer to
$350,000.
JIM CIERZNIAK: $350,000, I think that
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
p. continued....
is very good. I was at a public hearing
earlier this week for another locally ran
entity —the College Football Hall of
Fame —and we have an operational deficit
of $1,140,000. So there are pretty
significant differences between these two
enterprises. I was an early critic of
Blackthorn. I'm still not sure it should
have been built, but I would like to
congratulate the people involved for
running a very good operation and doing
very well. But when the bigger bond
payments come up in a few years, I think it
will be a little more difficult to make them.
But still, I think that any losses we might
have will be kind of minimal compared to
what we are experiencing with the College
Football Hall of Fame —so
congratulations. I think the success of
Blackthorn has made critics, like myself,
somewhat silent on this particular project.
Good -luck in the future.
Robert Hunt asked if there was anyone
else who wished to speak regarding
Resolution No. 1557. There was no one
else who wished to speak regarding
Resolution No. 1557. Robert Hunt closed
the public hearing for whatever action the
Commission wished to take.
q. Commission approval requested for
Resolution No. 1557 appropriating
monies for the purpose of defraying the
expenses of certain local public
improvements for the fiscal year
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
q. continued....
beginning January 1, 1998, and ending
December 31, 1998, including all
outstanding claims and obligations,
fixing a time when the same shall take
effect.
Upon a motion by Ms. Schwartz, seconded
by Mr. Donoho and unanimously carried,
the Commission adopted Resolution
No. 1557 appropriating 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.
r. Public Hearing on Resolution No. 1559.
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
December 5, 1997; a memorandum from
Amy Tweeten that on December 5, 1997,
she sent a copy of the Notice of Hearing to
the affected property owners and
registered neighborhood associations. As
of 10:00 a.m. this morning two written
remonstrances were received. One from
SSP Properties and the other from John
Gould at Viridian Office Park.
F:\ HOME\ CPHIPPS \WPDATA \COMMSN\121997.MIN -21-
COMMISSION ADOPTED RESOLUTION NO. 1557
APPROPRIATING 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 - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
Mrs. Kolata explained that Resolution
No. 1559 amends the acquisition list in the
South Bend Central Development Area
Development Plan by adding a number of
properties to the acquisition list.
Jon Hunt presented a site plan of the South
Bend Central Development Area
Development Plan that highlighted the
properties that are to be acquired.
Mrs. Kolata asked permission to withdraw
from the acquisition list the parcel
identified as C22 -17 with the owner's
name listed as First Source Corporation. It
is not our intent to back off of adding this
property to the acquisition list, but we
were notified that the property owner may
not have received proper notice of the
public hearing and rather than have this
become an issue, we would like to remove
this property from the proposed
acquisition list at this time. A resolution
will be put forward to add this piece of
property to the South Bend Central
Development Area Development Plan
acquisition list at a later meeting.
Mrs. Kolata explained that the first four
properties are in the vicinity of Monroe
and Lafayette Streets. It's an L- Shaped
piece of property that extends over to
Main Street. That is desired as part of the
expansion of the new building for the
Studebaker Museum. The next two
properties are located in the quarter block
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
at Main and Jefferson that we have
previously discussed acquiring properties
on. The first is the Hardee's restaurant
property and the second one is the former
C.E. Lee Building. We are recommending
that you amend Resolution No. 1559 to
exclude from this acquisition list parcel
number C- 22 -17.
The last two properties are portions of
properties that are needed for the
expansion of the Morris Civic Auditorium.
The properties that are needed for the
expansion of the Morris Civic Auditorium
are shaded in pink on the site plan.
Mrs. Kolata pointed out, on the site plan,
the exact location of the Morris Civic
Auditorium, the location for the expansion
of the Stage House, the Palais Royale
building and the parcel that is needed for
actual purchase from a Land Trust held at
First Source Bank. That property needs to
be acquired in order to accommodate the
loading dock and so the expansion of the
Morris can take place. She also pointed
out two other shaded areas on the site plan
that are needed for easements that will be
obtained on these properties.
Mrs. Kolata turned the presentation over
the Jon Hunt.
JON HUNT: My name is Jon Hunt and
I'm Director of the Department of
Community and Economic Development
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
for the City of South Bend with offices on
the 12th floor of this building. I'm going
to be covering a number of the proposed
acquisitions which you're considering as
an amendment to the Plan. I will not be
speaking on the Morris Civic, Ann Kolata
will handle that. I will be talking about
the acquisition proposed for the
Studebaker Museum block and also for the
two acquisitions that are proposed South
of the County- City/First Bank building
block.
We decided that I will be making the
presentation and we wouldn't have a series
of people coming forward —with one
exception— because you might have
specific questions on the Studebaker
Museum and our future plans. Mr. Pat
Billey is here. He is the President of the
Studebaker Museum Board and Ron
Radecki, who is the Executive Director of
the Studebaker Museum.
Let me say by way of introduction, I'm
going to walk through four points. I want
to talk about the existing conditions. I
want to talk a little about the proposed
development concepts. I want to talk
about the staff s recommendation and the
basis for that recommendation. And
finally summarize a few points.
The property that is at the Southwest
corner of Main and Jefferson Streets. In
terms of the overall approach, what we
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
believe that the staff is bringing forward is
a proposal for your consideration that is
appropriate to the existing South Bend
Central Development Area Plan. It is a
very reasonable approach in carrying out
the charge that is in the 1985 South Bend
Central Development Area Plan. I'm
going to talk a little about two specific
parcels, but you can take my remarks to
cover both the actions that you've taken in
the past, which was to add one parcel to
the acquisition list; and, an action which
you may be considering in the future, to
look at the parking lot that First Source
owns. So when I reference a number of
these items and issues, I'm going to be
talking about the full site —the full quarter
block. In addition to that, I would like to
confirm that what is being proposed by the
staff to the Commission is in conformity
with Area Plan's Comprehensive Plan that
was adopted, I believe, in the early '70's.
The plan called for dense commercial
development in the downtown area,
particularly in this area.
ANNE BRUNEEL: Jon just for the
record ... he is referring to a diagram of
downtown South Bend building coverage.
Why don't you mark that Exhibit A. As
you refer to the map, we'll refer to this in
the record as Exhibit A and if you could
just briefly describe how you have that
drawn out and what those various areas
represent.
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South Bend Redevelopment Commission
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6. NEW BUSINESS (CONT.)
r. continued....
JON HUNT: I was going to jump to that
next. But thank you. What I want to do is
put this in the proper setting by outlining
some of the aspects of the map here and
what some of the colors mean. Again,
since about 1965, long before my time, I
think it started with Lloyd Allen's plan,
every plan that has come through the City,
the Redevelopment Commission has
aimed at developing a high- density core to
the overall downtown plan. That was re-
affirmed in the 1985 Plan that outlined
almost the similar, same area that Lloyd
Allen's Plan did. That again was
confirmed with the 1987 to the Year 2000
Michigan Street Corridor Plan, which
while not addressing the full high density
corridor area, did address Michigan Street.
There has been a very consistent pattern of
public policy that has been expressed
through those various Plans by
emphasizing the need to have a high
density, compact center to the downtown.
JON HUNT: The blue outline represents,
in general, the high density core area that
has been called for since 1965. The red
area, with the kind of branches, is the
Michigan Street Corridor. In 1991 Center
City Associates' commissioned a study,
when a retail consultant came in and
suggested that the Michigan spine between
Western and Colfax with several branches
off on Jefferson, Wayne, Washington
Streets and Colfax Street was the area for
us to concentrate a critical mass of small
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
scale retail in it. The two yellow parcels
here represent the parcels on Michigan
Street that the Commission owns. The
dark blue or purple represent both private
and public parking garages. This is the
Wayne Street garage owned by the City,
the Jefferson Street garage owned by the
City, the Colfax Street garage owned by
the City, the garage that is under
construction for the Leighton Plaza project
and the garage known as the Norwest
Bank parking garage at this point. You
can see that the pieces work together
because as part of the high density core
area, the Municipal Parking Plan supports
that by providing parking not at grade but
above grade structural parking. In
addition, by concentrating on Michigan
Street, a small area of fours blocks easily
within the high density area, allows for
walking traffic, for convenient shopping,
restaurant and retail by office users and
other people coming into the downtown.
The green in Exhibit A, and I'll reference
this again, represents a number of sites that
were looked at by the staff but more than
just the staff. They were also examined by
a group called the Real Estate Strategy
Team, which is composed of a number of
private sector, real estate experts, local
people and public development officials,
which was formed to offer input into the
private market and to help us develop
plans that make sense not only from a
public purpose standpoint, but to take the
best advantage of market trends and
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South Bend Redevelopment Commission
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6. NEW BUSINESS (CONT.)
r. continued....
conditions in the community. And I'll
come back to that again. We looked at
five sites, as pointed out on Exhibit A, for
possible corporate office, high density
corporate office development. And I will
come back to that. Let me come down,
specifically, to the quarter block in
question and let me set the stage by
moving into the second piece of this,
which is the existing conditions on the
block. The quarter block at the Southwest
corner of Main and Jefferson is
approximately 33,000 sf , a relatively
small parcel in the modern day office
market as floor plates get bigger, bigger
and bigger in terms of how office
development is occurring. The proposed
site is made up of four, small parcels that
range from 1,500 sf to about 11,000 sf. It
has four owners of the various parcels and
it has three buildings on it. The largest
building on it is four stories, which we all
know as the C.E. Lee Building, which was
designed and developed as an auto
dealership, I believe in the '20's. The most
recent private use of it has been the C.E.
Lee Paint Supply operation and they
moved out of there some time ago.
Presently in the building is a church, and
then there is a small office associated with
that. The floor plate is larger than a couple
of the other uses on the block, but it is
small by modern standpoints in terms of
office development. It is approximately
11,000 sf. It is a four -story building, but
the upper floors are essentially where the
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
auto dealer parked the vehicles that were
in the inventory and has been used in the
past for parking by the private sector and
by people who have been in the building.
The building itself does not lend itself to
much of an efficient adaptive re -use for
commercial office space. The staff
believes that if this was renovated, it
would be an inefficient high cost and
really not be, in the long term, viable from
an office standpoint given the quality of
the office opportunity in the downtown.
The City at one time had looked at that in
terms of using it as a public office building
but backed off in terms of those costs and
inefficiencies. The second building on the
site and one that you're looking at today
also, is the Hardee's site —a 7,000 sf, fast
food restaurant with a drive - through. The
fast food restaurant has diminishing hours
of operation. I don't know if any of you
noticed over the last few years that the
number of hours and days, in fact, that it's
open, have been diminishing. The fast
food restaurant with the drive - through
does lease from First Source the parking
lot that has about twenty -five spaces in it
right now, and I believe there are two
more years left on that and that is a parcel
that you will be considering at the next
meeting. The third building on the site is
what is known as Barb's Restaurant, a
very small footprint of about 1,500 sf, four
stories, presently vacant and substandard.
The staff believes that even with adaptive
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South Bend Redevelopment Commission
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6. NEW BUSINESS (CONT.)
r. continued....
use of the renovation, that in the long
term, it will be less than a viable piece of
property in the long run for the community
and will not add, in fact to the high density
core concept that we want to pursue and
have been pursuing since 1965 through the
planning process. That is the make -up of
the block, approximately 33,000 sf of land,
four owners, three buildings, all three of
which do not necessarily support or
enhance the plan for the downtown 1985
Plan.
In terms of the surrounding uses that are
outside the dense core area, questions may
arise from the Commissioners about what
other kind of adaptive space is
there —what would be C office space if it
would be adapted. We could talk about
the Ries' Furniture building down here, we
could talk about the Medows' building up
here, we could talk about Shillings here.
There is also the Law building across the
street and all totaled through a preliminary
assessment... there is about a twenty -four
percent vacancy rate in either existing,
totally vacant buildings and other under
utilized buildings, I would say, fall into a
Class C category if they were adapted for
office use. So there are a number of
spaces.
Presently, we semi - annually conduct with
BOMA (Building Owner Management
Association) and Project Future semi-
annual surveys of the downtown office
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South Bend Redevelopment Commission
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6. NEW BUSINESS (CONT.)
r. continued....
market A through C and we do that in
January. We took a preliminary look at it
and will have a final report for you. But
Class A office space looks like the
vacancy rate is probably coming in at a 95
to 96 percent occupancy rate which is
very, very good. As the Leighton Plaza
project comes on, and assuming that
nobody leases that, it will add additional
space and bring the occupancy rate down
to approximately 90 percent and these are
preliminary numbers and we will have a
better sense for you pretty soon.
That is the existing conditions as we see it
on the immediate site and the surrounding
area and as it relates to the downtown
development plan. What is the staff
recommendation? The staff is
recommending the following: that the
existing conditions on the site do not, in
fact, re- enforce or compliment or support
in any manner, the long -term plans for the
high density core area of the downtown
plan; in considering that then, the next step
would be to propose, for your
consideration, a development concept
which we think makes sense in enhancing
and carrying forward the Redevelopment
Plan for the downtown, and again,
especially the core area of the downtown
Plan.
ANNE BRUNEEL: Jon, I'm sorry to stop
you, but at this point, the Plan, just for the
record if you could clarify, is the 1985
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
South Bend Central Development Area
Plan. Just for the record, why don't we
refer to that now as Exhibit B.
JON HUNT: What we propose now is
what we would see as a development
concept for that quarter block and this
broad brush- stroke concept would be
translated into both bid documents and
development standards for that site, if you
acquire that property and put it up for
public bid. We believe that the acquisition
and the assemblage does in fact support
what our long -term plans are and what the
community's long -term plans are for the
core area. First of all, the development
concept that we would call for, would call
for a 50,000 to 75,000 sf Class A office
building, either multi -tenant or corporate
headquarters. We would also suggest that
the development concept be translated into
a three to four -story building, urban style,
masonry facade. We suggest very strongly
in the bid documents that the requirement
be put forward to anchor the Southwest
corner, which is in a high visibility
corridor of downtown and anchor it by not
creating and pushing the building back off
of the lot lines but by bringing the building
up to the front. If in doing that, if there
were interests in the development of a
plaza of some sort, we would suggest that
it be limited in size and be very, very
pedestrian friendly on this heavy
pedestrian corridor. We also would stress
that any building or development that
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
would occur here, must take advantage of
the high visibility corner and create an
image that enhances the downtown plan
and momentum. It must also respect the
three major buildings that are on the other
corners of that intersection —the new
Leighton Plaza with the Memorial Health
Plex here, the old First Bank building and
the Federal Court building. We think that
having this extremely weak corner over
here is something that doesn't make a lot
of sense as it relates to the other buildings.
And again, we would ask you to consider
that in your development standards. We
also ask you to consider landscaped
buffered parking that would be put on any
of the sites here, and I don't know where
exactly it would go, but we urge you to
have that as a landscaped buffered parking
area. The second to the last thing that we
would ask you to consider in the
development concept and that the staff is
recommending to you is that this whole
block, in terms of parking and circulation
internally, needs to be planned together.
And we would urge you to require that
whoever bids and would win this site for
development purposes, be required to plan
together with the other office users on that
block to provide good internal circulation.
And, we would also then suggest that the
development standards be clear that we are
looking at limited public investment —that
is not any kind of investment in parking
structure or anything like that, but
essentially, investment in the public right-
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South Bend Redevelopment Commission
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6. NEW BUSINESS (CONT.)
r. continued....
of -way: curb, sidewalk, street, landscaping
in the public right -of -way and to target it
for tax abatement. Other than that, we
wouldn't suggest any other major public
investment.
Anyway, that is the proposed development
scheme. In moving from existing to
proposed, the question is why is the staff
coming forward and recommending to the
Commission at this time that we move on
this. Let me outline it very quickly and
then I'll end this portion of it. The staff
firmly believes that if you would amend
the plan and place all four of those parcels
on the acquisition list today, that the site
could be assembled and put out on the
market for bid in a manner that supports
the long -term plan for the downtown and
especially the core area or the high density
area. It takes advantage and it would
compliment the existing public
development investment and the private
investment that has been made. This
would be across from the two parking
garages, it would be within easy walking
distance of the retail spine that we're
working very, very hard on and just makes
all the sense in the world to try to get more
high density, high quality, high image on
that site. In terms of the other reasons the
staff is coming forward would be that we
are in competition to maintain Class A,
large scale office users in the downtown,
both to retain them but also to attract them
in. And without looking ahead and
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
beginning to prepare for people who will
be looking to leave the downtown and
come into the downtown, we would
concede the Class A office market to the
suburban sites. You have a great
groundbreaking later today. I know that
the Mayor pitched Holy Cross very, very
heavily on a downtown location. Their
natural question was "Where ?" There is
no readily available site for that type of
development but we are very, very happy
to see them in Blackthorn. So we're
saying that we need to compete
successfully and to create some
competitive advantages for us in carrying
out the downtown plan and that is having
corporate office sites available and ready
to go for development.
The next point that the staff is
recommending is that you amend the plan
is based on the fact that we really don't
need any more Class C office space in the
downtown. There is adequate Class C
office space in the downtown and some of
it probably should be converted to non-
office use. With the market on the
occupancy rate of Class A, we think that is
what we have to target and be aggressive
at. The other point that I want to stress,
and I reference the Real Estate Strategy
Team, is that the proposed amendment,
should you take action on it, is in line with
the May 1997 Report that went to the City
Council, to the City Redevelopment
Commission and to the Mayor —this is
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South Bend Redevelopment Commission
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6. NEW BUSINESS (CONT.)
r. continued....
Exhibit C —let me just quote from it. This
is from a May 1997 Report from the Real
Estate Strategy Team that began working
in October 1996 on a number of Real
Estate sectors. We started with the
downtown office market.
"The mission of the office market strategy
is to strengthen and improve the
competitive position of South Bend's
downtown office market within a regional
office market place so that investors and
owners find it both financially and
economically feasible to invest in and own
downtown office buildings and thereby
contribute to the overall economic
strength, vitality and viability of
downtown South Bend." A series of
following program goals were then
developed by the team. One of those is
that the public sector must provide for the
orderly development of new Class A office
buildings by creating new development
sites as part of its overall downtown plan.
JON HUNT: Skipping back to some
specific strategies suggested under that,
one of those is development of new Class
A office space. And the bullet point under
the strategy reads, "The City should
initiate specific acquisition activities as
identified by the overall office
development plan for specific
development opportunities and
landbanking of sites for future office
development. The sequence, size and
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
specific site location will be determined in
activities initiated in 1997." That was
from the Real Estate Strategy Team, which
is a team composed of both public and
private sector representatives. The other
reasons, and I will speed this up, is that the
existing uses in the buildings, we feel,
even with the rehab of some of them will
not have the long -term utility and viability
and add to the downtown plan. The
fragmented ownership and the small lots
make this site unlikely to be developed in
a timely manner and with optimum
development. Fragmented ownership is
one of the key aspects of why
Redevelopment gets into the business that
they are in. In summing up, I would say
the proposed acquisition and the land
assembly plus the development concept
that we're proposing to you today,
supports the downtown plan by focusing
on a higher density development, by
focusing on use of the existing parking
garages, by enhancing the image, identity
and market of people downtown. It
supports the retail spine that is part of the
Plan by putting high density development
close to those convenience retail and
restaurants, and it strengthens the visibility
and prestige of the downtown which will
help us market it. The site here calls for
nothing less than a Class A, 50,000 to
75000 sf office development.
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6. NEW BUSINESS (CONT.)
r. continued....
I'll close it out by summarizing that we
don't believe the existing conditions
support the Plan that have been in place
for a number of years. We believe that the
proposed development concept would
support the Plan and add momentum to the
continued downtown development.
ANNE BRUNEEL: Jon, just one more
point that I think you had mentioned early
on the Comprehensive Plan. Could you
explain that just a little for the
Commission? And do you have a copy of
that document?
a JON HUNT: I have a summary of the Plan
that was developed in the early 1970's by
the Area Plan Commission. And in terms
of the downtown area and it's probably
more visible on ... this is the Plan that was
actually used for the public. The other
planning documents are stacked this high.
The existing Area Plan Commission
Comprehensive Plan that they use for their
zoning and development decisions, shows
here in blue, and it is tough to see, is
bounded by the new St. Joseph over to
Lafayette, as office, business and planned
commercial in supporting the high density
development that is needed in a
downtown.
ANNE BRUNEEL: Can we refer to that
now as Exhibit D.
JON HUNT: I don't know if the
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South Bend Redevelopment Commission
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6. NEW BUSINESS (CONT.)
r. continued....
Commission has any questions or I can
leap to the Studebaker Museum. What
we're proposing is the acquisition of this
55,000 sf site for the construction of the
new museum, outdoor science and youth
play area and parking and exhibit areas to
support the Museum.
(Jon Hunt presented site plans of the
Studebaker Museum.)
JON HUNT: This is a proposed plan. The
site that we're talking about purchasing is
here.
(Jon Hunt pointed to the area located on
the Studebaker Museum site plan.)
JON HUNT: It is formed roughly like this
L. The new Museum will go on the Main
Street side. The play and science area will
be in this area. Proposed use of the
building, here, will be for restoration of
vehicles and maintenance of vehicles. A
large parking area of approximately 140
spaces with Coveleski right across the
street with their parking area and the
planned development of a Transpo parking
garage down here, which is planned to
have potential connection to the new
Museum, all start creating that synergy
that is needed in the Southwest quadrant of
the downtown. They will support one
another. Outdoor exhibits that the
Museum often has, bringing in hundreds
and hundreds of vehicles, can use this
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
parking, the Covelski parking and
probably can use the parking garage too
for those outdoor events. And again, the
Museum is the second, I believe, busiest
cultural institution in the downtown in
terms of tourism coming in. This project
supports the effort to drive for the
convention tourism and entertainment
concept of the downtown plan. The
Chamber of Commerce has been pushing
very, very hard on this. Dan Martin's
Economic Research Associates' report
also urged that we move on the
development of the new Museum.
Therefore, the staff is recommending to
you that we need to acquire this site
because we cannot pick up this building,
and it is not simply a small Museum that
you're moving to a quarter of a block
some place else. This all needs to work
together on this site. It needs to relate well
to those surrounding areas and use those
surrounding assets as those other facilities
will use the assets of the Museum.
ANN KOLATA: We want to make the
Studebaker Museum site plan, Exhibit E.
JON HUNT: It, again, is something that
after five years of very difficult
community debate, dialog and discussion
that all the stakeholders were lined up
behind the site. With the new Mayor
coming in, I know that the Mayor talked
with the Museum Board and after he
listened to the proposals, he re- affirmed
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
Mayor Kernan's commitment to the
project. The City administration ... I know
that the Redevelopment Commission
expressed support of the Museum and the
Driver's Club. And, the Chamber and
downtown convention and business
interests are all lined up on this site after a
very difficult five years.
Ann Kolata stated that she forgot to
mention this earlier but the staff checked
the mail at 10:00 a.m. this morning and, as
of that time, no other written
remonstrances were received. We had two
remonstrances that came in previously and
were mentioned earlier.
JON HUNT: We think that all the
acquisitions that are being proposed today
and your consideration of the amendment
to the Plan for those acquisitions, the staff
strongly recommends favorably on those
for your consideration.
I think that this is critical to the long range
of the Southwest Corridor. I think that is
also critical and an integral piece of the
cultural, education and entertainment
aspects of downtown South Bend, which
serves a large region. Again, we
recommend favorably to you from a staff
standpoint, the amendment to the Plan that
would bring this site on the aquisition list
also. If there are any questions, I will be
glad to answer them.
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
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Robert Hunt opened the public hearing for
anyone who wished to speak regarding
Resolution No. 1559.
GREG KIL: My name is Greg Kil. For
the record, I'm an architect engaged by
Steve Moerlein, the owner of the property
at 214 W. Jefferson, that's the former
Barb's Restaurant, one of the properties at
your last meeting you did pursue for
acquisition. My studio is located at 1126
Lincolnway East in South Bend. One of
the points that we feel is inconsistent with
retaining the building that my client is
interested in pursuing for development as
office space, is it's consistent with all the
goals that Mr. Hunt (Jon) just indicated,
except that it would not be Class A office
space. It does retain a four - story, urban-
style building with a masonry facade on
Jefferson. It would still allow for 55,000
to 75,000 sf office space on that remaining
area. If Hardee's and C.E. Lee and the
First Source parcel were taken over and
developed, would retain the major facade
on Jefferson and on Main Street. We feel
the viability of the building, over the long
term, exists. This building would be
independent of a potential, future office
building —Class A. We feel that ... we
would like to work with the City in some
middle ground on retaining Steve
Moerlein's building as a model, a retained
structure for the downtown that would
actually contribute to the liveliness,
viability of some of the few buildings that
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
do exist downtown. I think the plans that I
had presented to the Commission at the
last meeting showed some of the square
footage issues and if that would be
retained, this particular building is a four -
story building and again it does have
masonry on the Jefferson facade. It is only
22 lineal feet of frontage off ...right off the
alley on Jefferson. One of the other issues,
I guess, in hearing Jon Hunt's
presentation, I would like to ask a question
regarding the remaining portion of the
block or that whole ... not just the quarter
block but that entire block, "Is that
considered blighted ?"
ANNE BRUNEEL: No, Jon Hunt and the
Commission, for the record there is a
pending remonstrance in St. Joseph
County Superior Court and I'm going to
advise my client not to answer that
particular question.
GREG KIL: Regarding the remaining
block and maybe if I could have Exhibit A
exposed so that I could point to the quarter
block. (tape ran out) ... for skirting the mid -
block alley, retaining of size of...was
developed. Is that something that has been
considered.
JON HUNT: If the attorney feels that I
shouldn't say anything, I won't. If you're
comfortable....
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
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ANNE BRUNEEL: I don't think that it is
particularly revelant to any finding that the
Commission is required to make today on
this particular action, which is amending
the acquisition list to just add two parcels.
Mr. Moerlein's parcel being an action that
was taken previously.
GREG KIL: This was the first time that,
on behalf my client, that we've seen any
plans. There was a plan at an earlier
meeting that Jon Hunt had presented to my
client and myself back in July or August
of this summer that was tentative. Some
of the information that I see here is a little
more rounded and a little more full and
that was why I requested an opportunity to
ask a question on that. Again, I would like
to request the Commission consider some
middle ground in retaining this very small
sliver building, still allowing for the
development of the dominant, Class A
office space.
Bob Hunt asked if there was anyone else
who wished to speak regarding Resolution
No. 1559.
PAT BILLEY: My name is Pat Billey.
I'm the President of the Board of Trustees
of the Studebaker Museum. I'd like to just
take a minute or two to summarize, again,
some of the things that Jon Hunt had
explained to you. Over the past many
years, the Studebaker Museum has
attempted to get to the point where we are
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
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today and I would just like to stress to you
the need we have to acquire this property.
It goes back to the commitment that the
City has joined with us and over two years
ago, in the site selection of this property,
the time table for this project and also the
cost of this project. It is very clear to see,
I believe, that our present building being
on this parcel right here ... (he referred to
the site plan of the Studebaker
Museum) ... we cannot begin construction
until we have this acquired to have some
auxiliary parking for the new building to
be constructed in this area. Traffic
flowing one way South on Main Street.
We'll be deleting egress into the Museum.
The new egress will be off of South ... the
entrance will be off of South and Lafayette
Streets. This parking area, which is very
much part of the project, will support the
bus parking, RV parking, trailer parking,
etc., when we have special events. And
also the development of the science park
area, the children's space, our handicapped
area and off - loading of children in this
area for this special event area is very
critical, not -to- mention the appearance of
the block in general. If this were not here,
you could very easily see what we would
end up with and this has always been part
of the property acquisition. The existing
Bell Appliance building would be used, as
was mentioned, for storage and remedial
repair of some of the vehicles and
carriages that are in the collection. And
then lastly and most importantly, this area
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
would also provide for future expansion
for the Museum, to the North of the area
and still maintain a portion of this for
parking. Special events were
mentioned ... we hope to work in concert
with the Colveski people and some other
special events in the downtown area to
provide a great expanse of parking, either
for car activities or for activities at the
Cove that require remedial parking right
across the street from each other. In
summary again, this has always been a
scope of part of the overall plan for this
project and it is very much necessary to
have this so that we can continue thinking.
Are there any questions?
JOHN GOULD: My name is John Gould.
I live at 15755 Saddleridge Lane in
Granger. I stand before you today as my
attorney Bruce Bancroft was not able to
obtain any information on this Resolution
as far as it pertains to compensation.
Bruce couldn't make this meeting today
due to a scheduling conflict, so I'm here.
You have my letter stating my positions on
this issue in more detail than what I'm
going into now. Suffice it to say that I
support the acquisition of the property as
long as no real estate swap is involved in
compensation to the owner of the property
at the Southeast corner of Monroe and
Lafayette. Being a local, property tax
paying citizen that went through a lot of
trouble to locate, to obtain control of and
bid preparations for 602 South Michigan
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
Street, commonly known as the Dreisbach
site for the GSA contract. As you know, it
was awarded to an out -of -town contractor
for the Monroe and Lafayette corner. I
remain that local, property tax paying
citizen seeking fair treatment from you. I
do not believe it would be an ethical
course of action for the Commission, if
this resolution, in any way, causes my
competitor to obtain the 602 property for
the Social Security project.
ANNE BRUNEEL: I just would like to
state for the record that nothing in this
Resolution sets any compensation level for
the property at all. It is just a preliminary
action that will add the parcel to the
acquisition list. From there, it is
completely a separate process as far as the
acquisition and any subsequent disposition
of the property.
JOHN GOULD: Acquisition leads to
compensation.
ANN KOLATA: This does not authorize
any purchase offers. This is only adding it
to the acquisition list.
JOHN GOULD: Certainly it's early on but
that was the time for the public to make
their views known.
ANNE BRUNEEL: And I just wanted to
make that clear for the record.
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
Robert Hunt asked if there was anyone
else who wished to speak regarding
Resolution No. 1559. There wasn't
anyone else who wished to speak and
Robert Hunt closed the public hearing for
whatever action the Commission wished to
take.
Ms. Auburn commented that the
Studebaker Museum site plan with the
outdoor area and the Children's Park really
looks fabulous. It has been a long time
coming.
Mr. Robert Hunt stated that, relative to the
Museum, it's been a long standing position
of many people in the downtown area that
this Museum be a part of the
Entertainment District. It would basically
complete the portion —the Palais Royale,
Coveleski Stadium, Century Center and so
on. The lengthy battle that took place over
where the museum should be located is
finally resolved. They absolutely need this
property to complete their plans. I
strongly support this acquisition.
Anne Bruneel asked permission that
Exhibits A, B, C, D and E be entered into
the record.
Upon a motion by Ms. Schwartz, seconded
by Ms. Auburn and unanimously carried,
the Commission entered Exhibits A, B, C,
D and E into the record.
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
Anne Bruneel noted that just to clarify the
record, Exhibit A is the Downtown South
Bend Building Coverage map that was
referred to by Jon Hunt; Exhibit B is the
South Bend Central Development Area
Development Plan; Exhibit C is the Real
Estate Strategy Team Report; Exhibit D is
the summary of the Comprehensive Plan
by the Area Plan Commission and Exhibit
E is the Studebaker Museum site plan.
Ms. Schwartz thanked the staff for their
presentation, which was very thorough and
gave not only a current situation but a
historical background. She commented
that the staff has summarized the
information that has been available to all
the Commission members and her.
Ms. Schwartz noted that as the
Commission has been moving toward this
date, she has been on the Commission for
almost a year now, it certainly brought to
her view and vote on previous matters
relating to downtown acquisition the
information that has been presented today,
particularly with regard to the need for
additional Class A office space in the
high- density downtown area. She also
noted that for the downtown to continue an
impressive, dramatic and significant
growth and development it is necessary to
continue the presence of additional Class
A office space.
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
Ms. Schwartz commented that she didn't
know if there was on the record, the
definition of Class A, B and C office space
and she asked Robert Hunt if the
Commission could have a quick definition
of Class A, B and C office space before
the Commission moved to a vote.
Mrs. Schwartz also noted that the Leighton
Plaza comment that Jon Hunt made
"assuming no one leases," I assume was
for statistical purposes only and that we do
anticipate that that will be leased up very
quickly.
Mrs. Kolata summarized that generally the
Class A office buildings are characterized
by the level of finish within the building,
they are generally the highest quality in
terms of material and finish of Class A
office properties in the market place. They
are generally the highest priced buildings
in the market place. She noted that the
definition of Class A office buildings can
be subjective from one city to another and
there are different levels for each
community. She also commented that one
of the biggest distinguishing features in
Class A office buildings is the flexibility
or ease in which utilities, particularly
telephone and computer lines, etc., can be
arranged and modified within a building.
They have built within them the chases or
channels where the wiring can go and they
can be readily adapted for a new user
without major cost or involvement. They
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
typically do not have load bearing walls on
the interior, they allow free -span space
within the building.
Mrs. Kolata quoted the definition of Class
A, B and C office building from the
Building Owners and Managers
Association International publication.
"Class A office buildings are the most
prestigious buildings competing for
premier office users with rents above
average for the areas. The buildings have
high quality standards, finishes, state -of-
the -art systems, exceptional accessibility
and a definite market presence."
"Class B is buildings competing for a wide
range of users with rents in the average
range for the area. The building finishes
are fairly good for the area and systems are
adequate but the buildings do not compete
with Class A at the same price."
"Class C is buildings competing for
tenants requiring functional space at rents
below the average for the area."
From calling around to realtors in the area,
a Class A building has structural steel
columns and beams fireproofed with
masonry, concrete, plaster or other non-
combustible material. However, this
definition is highly flexible with each
market setting its own parameters.
Visibility and image are often used as the
measure of a building's caliber but
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
keeping current is also crucial.
Mrs. Kolata noted that there is
approximately 804,874 sf of Class A space
in the downtown with an occupancy rate
of 95 percent. She also noted that there
may be some buildings that were built as
Class A office buildings but are not
considered now as Class A office
buildings because of their condition. They
meet some of the requirements but they
may not be considered Class A because
they cannot draw the rents and the upkeep
may not be what is required to be a true
Class A building.
Upon a motion by Ms. Schwartz, seconded
by Mr. Donoho and unanimously carried,
the Commission amended Resolution
No. 1559 removing parcel number C22 -17
from the acquisition list of Resolution
No. 1559.
Ms. Auburn stated that one of the points
that came out in the staff recommendation,
particularly, is the need for Class A office
space. One of the things that increasingly
happens is the flight to suburban locations
of the Class A office user. Much of it in
part, because there is no additional access
to Class A office space in downtown. The
downtown South Bend area desperately
needs additional Class A office space.
First, because it attracts high
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
quality users but also because it tends to
be a denser development, and the density
of employees is critical to supporting the
secondary and tertiary businesses —the
coffee shops, the restaurants, the card
shops —cannot be supported by a small
market, they need larger high density
employees, who can get out and shop
before work, during lunch or after work in
order to support those. Because we're in a
downtown location, we're not in
greenfield sites, so we don't have the
luxury of acquiring a corn field and
putting up space. It's a more difficult
process to acquire and assemble land in
order to develop that kind of development.
Ms. Auburn commented that she has
certainly been around through many of the
controversial kinds of developments in the
downtown area. One of which comes to
mind is the Oddfellows building and the
subsequent development of Teachers
Credit Union. I think in retrospect, most
of us and most of the public would agree
that Teachers Credit Union has proved to
be a good replacement for the Oddfellows
building. Sometimes we have to make
tough decisions... that is for the public's
long -term benefit.
Upon a motion by Ms. Auburn, seconded
by Mr. Schwartz and unanimously carried,
the Commission adopted Resolution
No. 1559, as amended, amending the
South Bend Central Development Area
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South Bend Redevelopment Commission
Regular Meeting - December 19, 1997
6. NEW BUSINESS (CONT.)
r. continued....
Development Plan.
7. PROGRESS REPORTS
Mrs. Kolata reported that there is a
groundbreaking today at the Blackthorn
Corporate Park. Holy Cross Health System is
starting construction on their 92,000 sf
building.
The first tenants of the Robertson's building
are moving into their apartment today.
The opening of the Sav -A -Lot store on Chapin
IC Street is a really nice addition to the West
Washington Area. It opened earlier this week.
AEP announced the opening of their new
$3,000,000 Pine Road substation for
electricity in the Blackthorn area. It provides
a second source of power for businesses in the
area.
Mrs. Kolata distributed copies of a booklet
prepared by James Riggs on utilities in the
Blackthorn Corporate Park. It provides
information to potential buyers of land.
8. NEXT COMMISSION MEETING:
The next Regular Meeting of the
Redevelopment Commission is scheduled for
January 2, 1998.
FA H0ME\ CPHIPPS \WPDATA \C0MMSN\121997.MIN -54-
COMMISSION ADOPTED RESOLUTION NO. 1559, AS
AMENDED, AMENDING THE SOUTH BEND
CENTRAL DEVELOPMENT AREA DEVELOPMENT
PLAN
NEXT COMMISSION MEETING
jr
South Bend Redevelopment Commission
Regular Meeting - December 19, 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. onoho seconded the motion
and the,�was adjourned at 11:15 a.m.
Robert W. Hunt, President
ADJOURNMENT
g� e� VZ4�
Ann E. Kolata, Director
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