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HomeMy WebLinkAboutRM 01-16-98.t SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING January 16, 1998 10:00 P.M. Presiding: Robert W. Hunt, President 1. ROLL CALL 1308 County -City Building 227 West Jefferson Boulevard South Bend, Indiana Members Present: Mr. Robert W. Hunt, President Mr. Michael Donoho, Vice - President Ms. Eugenia S. Schwartz 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. Regina Plummer, Intern Ms. Joanna Smith, Economic Development Specialist Business Assistance: Ms. Nancy Van Scoyk, Economic Development Specialist Bureau of Housing: Ms. Mary Beth Thompson Ms. Patricia Beebe Others: Mr. Hardy, Barnes & Thornburg Mr. Ken Rybicki, Huckins Tool & Die Company Mr. Hunt noted that the Executive Session will continue immediately following the adjournment of the Regular Meeting. 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of December 19, 1997. F:\HOME\CPHIPPS\ WPDATA \COMMSN\011698.MIN -1- South Bend Redevelopment Commission Regular Meeting - January 16, 1998 Upon a motion by Ms. Schwartz, seconded COMMISSION APPROVED THE MINUTES OF THE by Mr. Donoho and unanimously carried, REGULAR MEETING OF DECEMBER 19, 1997 the Commission approved the Minutes of the Regular Meeting of December 19, 1997. b. Commission approval of the Minutes of the Annual Organizational Meeting of January 2, 1998. Upon a motion by Mr. Donoho, seconded COMMISSION APPROVED THE MINUTES OF THE by Ms. Schwartz and unanimously carried, ANNUAL ORGANIZATIONAL MEETING OF the Commission approved the Minutes of JANUARY 2, 1998 the Annual Organizational Meeting of January 2, 1998. c. Commission approval of the Minutes of the Special Meeting of January 2, 1998. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the Minutes of the Special Meeting of January 2, 1998. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE SPECIAL MEETING OF JANUARY 2, 1998 Redevelopment Commission Claims submitted January 16, 1998, for ratification and approval. 212 CDBG COMMUNITY DEVELOPMENT Tri- County News, Inc. American Planning Association South Bend Tribune N.I.P.S.C.O. New Life Restoration Inc. American Electric Power South Bend Tribune NBD Bank ICA Distribution Center Ameritech Kinko's F:\HOME\CPHI PPS \WPDATA \COMMSN\011698.MIN -2- $60.43 $229.00 $16.06 $38.58 $333.89 $24.93 $41.13 $208.36 $40.50 $26.28 $166.25 South Bend Redevelopment Commission Regular Meeting - January 16, 1998 3. APPROVAL OF CLAIMS (CONT.) 212 CDBG COMMUNITY DEVELOPMENT South Bend Tribune $10.88 360 Communication $103.71 NBD Bank $106.95 Ann Kolata $16.11 South Bend Work Works $15.51 324 FUND Peirce & Associates $750.00 J.F. New & Associates, Inc. $134.63 Young's Excavating, Inc. $125,938.35 414 SAMPLE -EWING FUND Ralph D. Lauver, MAI $12,450.00 420 SBCDA GENERAL ACCOUNT R.E. Pitts & Associates, Inc. $3,000.00 619 BLACKTHORN GOLF COURSE Meadowbrook Golf Management, Inc. $6,450.00 Upon a motion by Mr. Donoho, seconded by COMMISSION APPROVED THE CLAIMS SUBMITTED Ms. Schwartz and unanimously carried, the JANUARY 16, 1998, AND ORDERED THE CHECKS TO Commission approved the Claims submitted BE RELEASED January 16, 1998, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS a. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 229 E. Dubail. (Marsha Reaves) F:\ HOME\ CPHIPPS \WPDATA \COMMSN\011698.MIN -3- THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Regular Meeting - January 16, 1998 5. OLD BUSINESS (CONT.) a. continued.... Mrs. Kolata noted that the loan is in the amount of $6,950 at 2% percent interest for 15 years with monthly payments of $44.72. There is no grant in connection with this property. There were discussions and questions regarding this property at the last meeting. The Housing Development Corporation is selling this property to Ms. Reaves. There were some questions related to why the Housing Development Corporation wasn't making the repairs to the property at 229 E. Dubail. Mary Beth Thompson sent a memorandum to the Commission stating that the Housing Development Corporation wasn't paying for the repairs to the property because the property is being sold for a nominal amount in "as is" condition. Some of the costs are related to making some modifications to the property and some are related to repairs. 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 229 E. Dubail. (Marsha Reaves) Mrs. Kolata asked permission to add items 6.p. and 6.q. to the agenda. There were no objections and items 6.p. and 6.q. were added to the agenda. FAH 0ME\ CPHIPPS \WPDATA \C0MMSN\011698.MIN -4- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 229 E. DUBAIL (MARSHA REAVES) ITEMS 6.P. AND 6.Q. WERE ADDED TO THE AGENDA South Bend Redevelopment Commission Regular Meeting - January 16, 1998 6. NEW BUSINESS a. Public Hearing on Resolution No. 1562. Mrs. Kolata noted that this resolution relates to amending of the South Bend Central Development Area Development Plan. This would add to the acquisition list a piece of property that is owned by the First Source Corporation and is currently being leased to Hardee's. The property is being used as a parking lot in association with the Hardee's restaurant. There have been a couple of meetings with representatives from the First Source Corporation and the staff is recommending that the Commission not hold the public hearing on Resolution No. 1562 nor act on it today since the meetings with First Source are continuing. The staff would like to re- advertise the public hearing and hold it on February 6, 1998. b. Commission approval requested for Resolution No. 1562 amending the South Bend Central Development Area Development Plan. Items 6.a. and 6.b. were tabled until ITEMS 6.A. AND 6.13. WERE TABLED February 6, 1998. c. Commission approval requested for Resolution No. 1570 approving an application for personal property tax deduction for property located at 1010 Prairie Avenue. (Huckins Tool and Die Company, Inc.) F:\ HOME \CPHIPPS \WPDATA \COMMSMO11698.MIN -5- South Bend Redevelopment Commission Regular Meeting - January 16, 1998 6. NEW BUSINESS (CONT.) c. continued.... Nancy Van Scoyk gave the staff report on this project. Huckins Tool & Die Company, Inc. is the designer and builder of tools, dies, fixtures, gauges, and special machines for the automotive, farm implements and earth moving industries. The company is presently planning an expansion with the following new personal property being purchased, two Vertical Knee CNC Milling Machines with tooling, software, one Lathe -17" turning capacity by 6' bed, and two Surface grinders. The estimated total project cost is $157,000. These new capital improvements will allow the company to achieve future growth, enter new markets and maintain its existing quality. Per the petition, it is that this project will create four (4) permanent jobs within the first year, representing a new annual payroll of $150,000 and will maintain 31 existing permanent full -time jobs and existing part-time jobs representing an annual payroll $1,262,300. A review of the tax abatements previously granted finds that Huckins Tool & Die Company has not been granted previous tax 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 designation areas finds that the property is located in the Sample -Ewing Development F:\I TOME\ CPHIPPS \WPDATA \COMMSN\011698.MIN -6- South Bend Redevelopment Commission Regular Meeting -January 16, 1998 6. NEW BUSINESS (CONT.) c. continued.... Area, which is a Tax Increment 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 Huckins Tool & Die meets the qualifications for a five (5) year personal property tax abatement. Using an estimated equipment cost of $157,000, taxes generated over the five - year period total $14,595. Taxes abated over the five -year period total $12,007. Taxes still paid with the abatement over the five -year period total $2,588. Ken Rybicki, president of Huckins Tool & Die, stated that his company has been in the South Bend area for 62 years and has been located at the Prairie address since 1965. Huckins Tool & Die is planning to develop an expansion program to accommodate all of the production business that it's experiencing now. If they take on more work than their capacity, the work will be subleased and sent out of state. Mr. Rybicki stated that Huckins Tool & Die intends to purchase the equipment in order to keep the work in- house. The new equipment will add approximately $800,000 in sales per year. In order to remain productive, Huckins Tool & Die plans to hire a salesperson to handle the extra volume of work, a couple more operators to run the new equipment F:\ HOME\CPHIPPS \WPDATA \COMMSN\0I 1698.MIN -7- South Bend Redevelopment Commission Regular Meeting - January 16, 1998 6. NEW BUSINESS (CONT.) c. continued.... and benchmen to assemble it. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1570 approving an application for personal property tax deduction for property located at 1010 Prairie Avenue. (Huckins Tool & Die Company, Inc.) d. Receipt of bids for property located in the Airport Economic Development Area. Mrs. Kolata stated that a bid was advertised for the sale of land at the intersection of the Toll Road and Bypass. As of 10:00 a.m. this morning, no bids were received. e. Commission approval requested for Resolution No. 1571 approving a modification to the lease for Palais Royale/Morris Civic Center project and approving the execution of an addendum to the lease. Randy Rompola of Baker & Daniels stated that this resolution approves an addendum to the lease. In May of 1997, the Redevelopment Commission approved an amended and restated lease for the Palais Royale/Morris Civic Center financing. The lease that was amended then dates back to 1992 when the financing for the purchase of the Palais F:\ HOME \CPHIPPS \WPDATA \COMMSY011698.MIN -8- COMMISSION ADOPTED RESOLUTION NO. 1570 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1010 PRAIRIE AVENUE (HUCKINS TOOL & DIE COMPANY, INC.) South Bend Redevelopment Commission Regular Meeting - January 16, 1998 6. NEW BUSINESS (CONT.) e. continued.... Royale was obtained. Now, new financing is occurring for the renovations of the Palais Royale/Morris, and the financing will supplement the financing that was done in 1992 to acquire the Palais Royale. Mr. Rompola also stated that the current amendment is for two reasons. First, when the State Tax Board approved the lease in August 1997, it approved the lease payment at $3,000 less than what was petitioned for. The opportunity to appeal to increase the petitioned amount was available but the appeal wasn't needed because the maximum lease rental that was approved is still higher than what the actual payment will be. Second, in the financing, a portion of the bond proceeds will be used to create a Reserve Fund that will be held by a Trustee. The Reserve Fund will be available to the Redevelopment Commission as it looks forward to calculate money that will be needed to make lease rental payments each year. The lease has been amended to provide that, to the extent that the fund should ever grow to a sufficient amount, the semi - annual rental payments can be reduced by any excess amount that the Trustee will hold so that there may be some benefit in the future. Upon a motion by Mr. Donoho, seconded COMMISSION ADOPTED RESOLUTION NO. 1571 by Ms. Schwartz and unanimously carried, APPROVING A MODIFICATION TO THE LEASE FOR the Commission adopted Resolution PALAIS ROYALE/MORRIS CIVIC CENTER PROJECT No. 1571 approving a modification to the AND APPROVING THE EXECUTION OF AN ADDENDUM TO THE LEASE F:\ HOME\ CPHIPPS \WPDATA \COMMSN\011698.MIN -9- South Bend Redevelopment Commission Regular Meeting - January 16, 1998 6. NEW BUSINESS (CONT.) e. continued.... lease for Palais Royale/Morris Civic Center project and approving the execution of an addendum to the lease. L Commission approval requested for Resolution No. 1572 establishing certain funds and accounts in connection with the amended and restated lease dated as of May 1, 1997, as amended by an addendum to lease dated as of January 15, 1998, between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority relating to the Palais Royale/Morris Civic Center project and other related matters. Randy Rompola of Baker & Daniels stated that this resolution is the actual pledge resolution by which the Commission agrees that in the event that there are not sufficient revenues, a tax will be levied. By adopting this resolution, it will secure the financing and allow for a good interest rate on the financing. The expectation is that a tax levy won't be needed and the Reserve Fund will be available. The bonds are structured so that there is a sufficient amount of coverage available, if needed, to make the lease rental payments. Mr. Rompola noted that Resolution No. 1572 is needed to provide security and the bondholders will look at this resolution FA HOME1. CPHIPPS \WPDATA \COMMSM011698.MIN -10- South Bend Redevelopment Commission Regular Meeting - January 16, 1998 6. NEW BUSINESS (CONT.) E continued.... when they buy the bond. This resolution also makes reference to the Reserve Fund. The Commission will have the Reserve Fund to look at each year as the Commission looks forward and determines whether or not it needs to levy a tax. The Reserve Fund will help offset the money that the Commission will otherwise need when determinating to levy a tax. Mrs. Kolata commented that approval from the State Tax Board was received last summer. The bonds could have been issued at any time, but the issuance of the bonds was held off until closer to the start of construction. The "Closing of the House" (Morris) party will be held tomorrow night. The seat removal within the Morris Civic will start in February of 1998. The first bids will be received by the Board of Public Works in March of 1998. The bond issue is anticipated to close in March of 1998, so that the bond proceeds will be available when the contracts are awarded. Mrs. Kolata stated that at the time the bond issue was structured, it was anticipated that the $1.6 million in cash that had already been collected by the Entertainment District Board for the project would be used to reduce the total bond size. There will be additional pledges coming in over the years. The first source of payment for the bond will be the pledges as they come in over the F:\ HOME\ CPHIPPS \WPDATA \COMMSN\011698.MIN -11- South Bend Redevelopment Commission Regular Meeting - January 16, 1998 6. NEW BUSINESS (CONT.) f. continued.... next three to five years. In addition to that, the next source of payment will be the Economic Development Income Tax from the City. Mr. Donoho asked who will control the Reserve Fund. Mr. Rompola stated that the Reserve Fund will be held by a Bond Trustee. Mr. Donoho asked if the Bond Trustee will determine the use of the Reserve Fund. Mr. Rompola responded that the Bond Trustee will be responsible for investing the proceeds that are in the Reserve Fund. Mr. Donoho asked who will instruct the Bond Trustee on the use of the Reserve Fund. Mr. Rompola responded that the funds are held by the Bond Trustee by way of a Trust Agreement. The Trustee will look to the City for instructions as to how to invest the reserve funds. The Bond Trustee will invest the funds within the parameters of the rules related to the governmental units. Mrs. Kolata commented that the documents that Mr. Rompola is referring to are documents adopted by the Redevelopment Authority, who is the issuer of the bonds. A Redevelopment Authority meeting is scheduled for Wednesday, January 21, 1998 at 1:00 p.m., at which time the Redevelopment Authority will take action on the lease rental revenue bonds and the addendum to the lease. The Redevelopment Authority will act on the lease, the trust indenture F:\HOME\CPH PPS \WPDATA \COMMSN\011698.MIN -12- South Bend Redevelopment Commission Regular Meeting - January 16, 1998 6. NEW BUSINESS (CONT.) L continued.... and a number of other documents related to the bond issue, because it is the issuer of the bonds. The Redevelopment Commission indirectly pays for the bond by making the lease payments to the Redevelopment Authority. Ms. Schwartz asked when the first lease payment is due. Mrs. Kolata responded that there will be capitalized interest in the bond structure and the first lease payment is due in February 2000 and the project is anticipated to be completed by the summer of 1999. Upon a motion by Ms. Schwartz, seconded COMMISSION ADOPTED RESOLUTION NO. 1572 by Mr. Donoho and unanimously carried, ESTABLISHING CERTAIN FUNDS AND ACCOUNTS the Commission adopted Resolution IN CONNECTION WITH THE AMENDED AND No. 1572 establishing certain funds and RESTATED LEASE DATED AS OF MAY 1, 1997, AS AMENDED BY AN ADDENDUM TO LEASE DATED accounts in connection with the amended AS OF JANUARY 15, 1998, BETWEEN THE SOUTH and restated lease dated as of May 1, 1997, BEND REDEVELOPMENT COMMISSION AND THE as amended by an addendum to lease dated SOUTH BEND REDEVELOPMENT AUTHORITY as of January 15, 1998, between the South RELATING TO THE PALAIS ROYALE/MORRIS CIVIC Bend Redevelopment Commission and the CENTER PROJECT AND OTHER RELATED MATTERS South Bend Redevelopment Authority relating to the Palais Royale/Morris Civic Center project and other related matters. g. Commission approval requested for Assignment of Lease with American Drug Stores, Inc. to American Partners, L.P., an Indiana limited partnership. Mrs. Kolata stated that a letter was received from American Partners, L.P., a company representing Osco Drug Store. F:\H0ME\CPHIPPS \WPDATA \COMMSN\0I 1698.MIN -13- South Bend Redevelopment Commission Regular Meeting - January 16, 1998 6. NEW BUSINESS (CONT.) g. continued.... This relates to the Osco Store located at 128 S. Michigan Street. American Drug Stores, Inc. is informing the Commission that it's assigning its lease to American Partners, L.P. Mr. Hunt asked when the lease with American Drug Stores, Inc. will be up. Mrs. Kolata responded that the lease will be up sometime in September of 1998. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the Assignment of Lease with American Drug Stores, Inc. to American Partners, L.P., an Indiana limited partnership. h. Commission approval requested for proposal from Business Districts, Inc. for market analysis of the South Gateway Commercial Corridor in the Sample -Ewing Development Area. John Stark, an Economic Development Specialist, stated that the South Gateway Corridor planning initiative began approximately a year ago and the background data gathering has been completed. The search for outside consultants to help with the market analysis is ready to begin. The consultants will spend some time talking with people at South Gateway and local people that know the South Bend market. The consultants will develop some strengths F:\ HOME\ CPHIPPS \WPDATA \COMMSN\011698.MIN -14- COMMISSION APPROVED THE ASSIGNMENT OF LEASE WITH AMERICAN DRUG STORES, INC. TO AMERICAN PARTNERS, L.P., AN INDIANA LIMITED PARTNERSHIP South Bend Redevelopment Commission Regular Meeting - January 16, 1998 6. NEW BUSINESS (CONT.) h. continued.... and weaknesses of the area and they will look at the demographics, retail trends, land use and urban design. From all of this information, the consultants will help the Redevelopment staff develop a marketing plan for the South Gateway area. A number of proposals were received, but Business Districts, Inc. was the most encompassing of all the proposals. The Urban Enterprise Association has targeted approximately $22,000 for the South Gateway planning initiatives and it's anticipated that this total amount will be used to pay for the market analysis. An additional $4,000 to $5,000 will come from Redevelopment funds to cover the total $26,100, which is the cost of the market analysis. Mrs. Kolata noted that Business Districts, Inc. is a firm associated with Teska, a planning firm out of Illinois and one of the most highly regarded planning firms in the mid -west. Teska also conducted the Southeast planning initiatives. The amount of the compensation is $26,100. Mrs. Kolata asked John Stark if he knew approximately how long Business Districts, Inc. will need to complete the market analysis. Mr. Stark responded that Business Districts, Inc. noted in their proposal that the market analysis will be completed within 12 months based on Redevelopment having compiled all of its data. Mrs. Kolata commented that Business Districts, Inc. will not be given F:\HOME\ CPHIPPS \WPDATA \COMMSN\011698.MIN -15- South Bend Redevelopment Commission Regular Meeting - January 16, 1998 6. NEW BUSINESS (CONT.) h. continued.... 12 twelve months since Redevelopment has compiled its data and is ready to proceed. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission accepted the proposal from Business Districts, Inc. subject to striking the last sentence of paragraph E. on page two referring to the method of payment, the entire paragraph I. referring to arbitration, changing the project completion date from 12 months to six months from today, striking the interest rate on late payments, strking "one hour" from the listening session and changing the state name list in the proposal from South Bend, Illinois to South Bend, Indiana. i. Commission approval requested for proposal from Cole Associates for professional services in the Airport Economic Development Area. James Riggs stated that this proposal relates to the Holy Cross project at the Blackthorn Corporate Park. In the Agreement with Holy Cross regarding purchase of the property, the Commission agreed to complete the construction of Mayflower Court. The proposal from Cole Associates is for design and engineering services of a roadway, storm sewer and drainage, utility relocations, lighting and irrigation of the new road FA TOMETPHIPPSMPDATATOMMSM0I1698.MIN -16- COMMISSION ACCEPTED THE PROPOSAL FROM BUSINESS DISTRICTS, INC. SUBJECT TO STRIKING THE LAST SENTENCE OF PARAGRAPH E. ON PAGE TWO REFERRING TO THE METHOD OF PAYMENT, THE ENTIRE PARAGRAPH I. REFERRING TO ARBITRATION, CHANGING THE PROJECT COMPLETION DATE FROM 12 MONTHS TO SIX MONTHS FROM TODAY, STRIKING THE INTEREST RATE ON LATE PAYMENTS, STRIKING "ONE HOUR" FROM THE LISTENING SESSION AND CHANGING THE STATE NAME LIST IN THE PROPOSAL FROM SOUTH BEND, ILLINOIS TO SOUTH BEND, INDIANA South Bend Redevelopment Commission Regular Meeting - January 16, 1998 6. NEW BUSINESS (CONT.) i. continued.... itself. The total proposed cost is $57,220. James Riggs recommended that the section under Item N. of page four relating to the major subdivision plat totaling $15,600 be removed from this contract. Mr. Riggs noted that another proposal was received early this morning for another subdivision project and the subdivision plat fee was half of that of Cole Associates'. He commented that the staff will come back to the Commission at a later date regarding the subdivision plat. Mr. Donoho asked if the Commission were to strike the major subdivision plat from Cole's proposal, would Cole be willing to proceed with the other design and engineering services related to the Holy Cross project as stated in their proposal. James Riggs responded that the staff will discuss the Commission's approved terms of Cole Associates' proposal and if Cole Associates wants to submit another proposal relating to the major subdivision plat relative to this project, then the staff will present the new proposal to the Commission for its consideration. James Riggs commented that Carl Littrell of the City Engineering Department reviewed the proposal and stated that the prices other than the major subdivision plat were acceptable. F:\I TOME\ CPHIPPS \WPDATA \COMMSN\011698.MIN -17- South Bend Redevelopment Commission Regular Meeting - January 16, 1998 6. NEW BUSINESS (CONT.) i. continued.... Upon a motion by Ms. Schwartz, seconded ITEM 6.I. WAS TABLED by Mr. Donoho and unanimously carried, the Commission tabled item 6.i and directed the staff to work with Cole on a revised proposal. j. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 235 E. Fox. (Alfonso Cardenas and Northern Oak Homes) Mrs. Kolata stated that this Certificate of Waiver forgives $850.00 as of December 23, 1997. Upon a motion by Ms. Schwartz, 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 235 E. Fox. (Alfonso Cardenas and Northern Oak Homes) k. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 305 E. Fox. (Alfonso Cardenas and Northern Oak Homes) Mrs. Kolata stated that this Certificate of Waiver forgives $750 as of November 23, 1997. F:\ITOME\ CPHIPPS \WPDATA \COMMSN\011698.MIN -18- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 235 E. FOX (ALFONSO CARDENAS AND NORTHERN OAK HOMES) South Bend Redevelopment Commission Regular Meeting - January 16, 1998 6. NEW BUSINESS (CONT.) k. continued.... Upon a motion by Ms. Schwartz, 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 305 E. Fox. (Alfonso Cardenas and Northern Oak Homes) 1. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 431 Cottage Grove. (Housing Development Corporation) Mrs. Kolata stated that this Certificate of Waiver forgives $1,740.00 as of December 22, 1997. Upon a motion by Ms. Schwartz, 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 431 Cottage Grove. (Housing Development Corporation) m. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 202 E. Indiana. (Jeffry Blankenship) Mrs. Kolata stated that the loan to Jeffry Blankenship is in the amount of $8,700 at 3% interest for 15 years with monthly payments of $60.08. The grant is in the F:\ HOME\CPHIPPS \WPDATA \COMMSN\0I 1698.MIN -19- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 305 E. FOX. (ALFONSO CARDENAS AND NORTHERN OAK HOMES) COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 431 COTTAGE GROVE. (HOUSING DEVELOPMENT CORPORATION) South Bend Redevelopment Commission Regular Meeting - January 16, 1998 6. NEW BUSINESS (CONT.) m. continued.... amount of $3,687.20. 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 202 E. Indiana. (Jeffry Blankenship) n. Commission authorization requested for Director to petition to vacate alley behind the Morris Civic Auditorium. Mrs. Kolata stated that the petiton is for the alley located directly behind the Morris Civic Auditorium and the alley is needed for the expansion of the Stage House. Upon a motion by Mr. Donoho, seconded by Ms. Schwartz and unanimously carried, the Commission authorized the Director to petition to vacate alley behind the Morris Civic Auditorium. o. Commission approval requested for Satisfaction of Obligations and Release of Mortgage. Anne Brunel of the City of South Bend Legal Department stated that in May 1997, the Commission agreed to allow Joseph McHatton to assign his Rental Rehab Loan obligations to Ali Mojarred. As of October 1997, Mr. Mojarred had received his last Certificate of Waiver relative to the Rental Rehab Loan. The mortgage has F:\ HOME\ CPHIPPS \WPDATA \COMMSN\011698.MIN -20- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 202 E. INDIANA. (JEFFRY BLANKENSHIP) COMMISSION AUTHORIZED THE DIRECTOR TO PETITION TO VACATE ALLEY BEHIND THE MORRIS CIVIC AUDITORIUM South Bend Redevelopment Commission Regular Meeting - January 16, 1998 6. NEW BUSINESS (CONT.) o. continued.... now been satisfied and is being released. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the Satisfaction of Obligations and Release of Mortgage for property located at 1128 and 1130 Lincolnway West. p. Commission approval requested for proposal from Panzica Construction to erect a project sign at the northwest corner of Main and Western Streets. Mrs. Kolata stated that a letter -of- request was received from Panzica Construction to erect a project sign at the northwest corner of Main and Jefferson Streets. When the Commission entered into a Contract for Sale of Land for the Bankruptcy Court property, it included two phases. Phase I is the Bankruptcy Court and Phase II of the project is to develop a 20,000 sf office building on the corner of Main and Western Streets. Mrs. Kolata noted that Panzica wants to put up a "now leasing" sign that indicates that Panzica is now willing to construct up to 30,000 sf of prime office space with parking. The staff recommends approving the project sign that is to be located at the northwest corner of Main and Jefferson Streets on the edge of the parking lot pavement. F:\ HOME\ CPHIPPS \WPDATA \COMMSN\011698.MIN -21- COMMISSION APPROVED THE SATISFACTION OF OBLIGATIONS AND RELEASE OF MORTGAGE FOR PROPERTY LOCATED AT 1128 AND 1130 LINCOLNWAY WEST South Bend Redevelopment Commission Regular Meeting - January 16, 1998 6. NEW BUSINESS (CONT.) p. continued.... Ms. Schwartz asked if the GSA has changed, after the Commission entered into the agreement relative to the Bankruptcy Court, its requirements relative to bunkers being around federal buildings and she also asked if approval of a second building being constructed on the Bankruptcy Court property will be a problem. Mrs. Kolata stated that the Commission entered into an agreement for the second building prior to the safety requirements that GSA started imposing after the bombing of the Oklahoma City federal building. The Bankruptcy Court building had to be re- designed in order to meet some of GSA's new requirements. Upon a motion by Mr. Donoho, seconded by Ms. Schwartz and unanimously carried, the Commission approved the project sign to be erected at the northwest corner of Main and Western Streets at the edge of the parking lot pavement. q. Commission approval requested for fundraising sign on the Morris Civic Plaza. Mrs. Kolata stated that a letter -of- request was received from Denise Chambers of the Morris Civic Auditorium to construct a 3' x 4', non - electric, wooden "marquee" type sign in the Plaza showing the public's support of the "Morris Performing Arts F:\ TOME\ CPHIPPS \WPDATA \COMMSN\011698.MIN -22- COMMISSION APPROVED THE PROJECT SIGN TO BE ERECTED AT THE NORTHWEST CORNER OF MAIN AND WESTERN STREETS AT THE EDGE OF THE PARKING LOT PAVEMENT South Bend Redevelopment Commission Regular Meeting - January 16, 1998 6. NEW BUSINESS (CONT.) q. continued.... Renovation Fund - Drive." Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the fundraising sign on the Morris Civic Plaza. 7. PROGRESS REPORTS Mrs. Kolata reported that Center City Associates has hired John Baxter to serve as the Executive Director. 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is scheduled for February 6, 1998 at 10:00 a.m. There will also be a Special meeting at 8:00 a.m., on January 23, 1998. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Ms. Schwartz made a motion that the meeting be adjourne Donoho seconded the motion andph'q_njeelling was adjourned at 11:00 a.m. Robert W. Hunt, President COMMISSION APPROVED THE FUNDRAISING SIGN ON THE MORRIS CIVIC PLAZA ADJOURNMENT Ann E. Kolata, Director F:\H OME\ CPHIPPS \WPDATA \COMMSN\011698.MIN -23-