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HomeMy WebLinkAboutRM 02-20-98�_. ; A.. , A SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING February 20, 1998 10:00 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 Ms. Vangelean Urbanski, Recording Secretary Mr. James Riggs, Economic Development Specialist Mr. John Stark, Economic Development Specialist Mr. Owen Rock, Economic Development Specialist Ms. Amy Tweeten, Economic Development Specialist Ms. Joanna Smith, Economic Development Specialist Ms. Hedy Robinson, Economic Development Specialist Business Assistance: Ms. Nancy Van Scoyk, Economic Development Specialist Bureau of Housing: Ms. Kathy Baumgartner, Director of Housing Dev. Corp. Media: Mr. Terry Bland, South Bend Tribune Others: Mr. Randy Rompola, Baker and Daniels Mr. John Baxter, Center City Associates Mr. Steve Kubsch, Michiana Industrial Supply Ms. Karla Chevue Mr. Dan Kovas, Kovas Door Company Mr. Steve Ellison, Stone Real Estate Group Mr. Brad Toothaker, CB Commercial/Robert Bradley Assoc. Mr. Michael Mather Ms. Katherine Licht Mr. Claudia Bueno -1- South Bend Redevelopment Commission Regular Meeting - February 20, 1998 Mr. Demetrec Johnson Ms. Marta Bueno Ms. Rise Silas Mr. Kyle Markham Mr. Philip Faccenda, Jr., Attorney Mr. George Wiegand, Total Enterprises, LTD 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 February 6, 1998. Upon a motion by Ms. Schwartz, seconded by Ms. Auburn and unanimously carried, the Commission approved the Minutes of the Regular Meeting of February 6, 1998. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FEBRUARY 6, 1998 Redevelopment Commission Claims submitted February 20, 1998 for ratification & approval. 212 CDBG COMMUNITY DEVELOPMENT Business System $43.21 Peirce & Associates $275.00 Engineering Department $107.10 NBD Bank $299.62 Catering By Billie $56.10 Current Labels $8.45 Insty -Prints $15.00 R.C. Blake & Associates $1,578.00 American Electric Power $22.86 Ameritech $27.37 General Fund- Telephone $242.98 Honker's Family Restaurant $100.00 -2- r• fir. � South Bend Redevelopment Commission Regular Meeting - February 20, 1998 3. APPROVAL OF CLAIMS (CONT.) 324 FUND Elumatec USA, Inc. 414 SAMPLE -EWING FUND R. E. McCloskey & Associates, Inc. R. E. McCloskey & Associates, Inc. D. L. Carpenter & Appraiser Calpro Fence Cole Associates Inc. Grauvogel & Associates 420 SBCDA GENERAL ACCOUNT Clark's Trash Removal East Race Properties Robert Bradley Associates, LLC Robert Bradley Associates, LLC Robert Bradley Associates, LLC Robert Bradley Associates, LLC Robert Bradley Associates, LLC 619 BLACKTHORN Norwest Bank Indiana, N.A. Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Commission approved the Claims submitted February 20, 1998, and ordered the checks to be released. Ms. Schwartz abstained. 4. COMMUNICATIONS Mrs. Kolata stated that there was one Communication that relates to the Public Hearing that would be presented later in the meeting. -3- $8,556.00 $1,500.00 $2,500.00 $250.00 $15.00 $50,280.00 $900.00 $2,850.00 $40,277.70 $459.82 $454.91 $527.38 $673.52 $807.59 $180,500.00 COMMISSION APPROVED THE CLAIMS SUBMITTED FEBRUARY 20, 1998, AND ORDERED THE CHECKS TO BE RELEASED man- South South Bend Redevelopment Commission Regular Meeting - February 20, 1998 5. OLD BUSINESS a. Commission approval requested for proposal for environmental services for property located in the Sample -Ewing Development Area. Mrs. Kolata stated that two proposals were received for sampling and abandoning of four monitoring wells located on the former Avanti site. One proposal was from EIS Environmental Engineers, Inc. and the second proposal was from Envirocorp. Carl Littrell of the City of South Bend Engineering Department reviewed both proposals and it was his recommendation that the proposal from EIS Environmental Engineers Inc. in the amount of $4,100 be accepted. Ms. Schwartz requested that EIS Environmental Engineers, Inc. be required to have prior written approval for any fees in excess of $4,100. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission accepted the proposal from EIS Environmental Engineers, Inc. in the amount not -to- exceed $4,100, subject to the Director of Redevelopment providing written approval of any fees in excess of $4,100 for environmental services for property located in the Sample -Ewing Development Area. Mrs. Kolata asked permission to add item 6.s. to the agenda. There was no objection and item 6.s. was added. -4- COMMISSION ACCEPTED THE PROPOSAL FROM EIS ENVIRONMENTAL ENGINEERS, INC. IN THE AMOUNT NOT -TO- EXCEED $4,100, SUBJECT TO THE DIRECTOR OF REDEVELOPMENT PROVIDING WRITTEN APPROVAL OF ANY FEES IN EXCESS OF $4,100 FOR ENVIRONMENTAL SERVICES FOR PROPERTY LOCATED IN THE SAMPLE -EWING DEVELOPMENT AREA in.. South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS a. Public Hearing on Resolution No. 1574. Mrs. Kolata asked that the following items be entered into the record: Affidavits from Lisa Andrysiak of the Tri- County News and Carol Smith of the South Bend Tribune that the Notice of Public Hearing was published in those newspapers on February 6, 1998, and a memorandum from Hedy Robinson stating that on February 9, 1998, a copy of the notice of public hearing was sent to the effected property owners and registered neighborhood groups and leaders. As of 10:00 a.m. today, no written remonstrances were received. Mrs. Kolata stated that Resolution No. 1574 amends the Sample -Ewing Development Area Development Plan by adding a number properties to the acquisition list. The properties being added to the acquisition list are three vacant lots, one home and a piece of property located within the block bounded by Tutt, Main, Sample and Lafayette Streets that was the former railroad right - of -way in the Studebaker Corridor. Mrs. Kolata recommended removing from the acquisition list tax key #18- 7026 -1031 for the property located at 133 Broadway, owned by American Bankers Life Assurance. She has been in contact with American Bankers Life Assurance's attorney, who stated that his client agrees to construct a single - family, two -story, 1,800 sf home for homeownership and -5- South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS a. continued.... substantially complete the home by the end of 1998. Based on this commitment, the staff is recommending that this property be deleted from this Resolution. The purpose for acquiring the property in the southeast neighborhood is to make the land available for new, single - family housing construction that would be homeowner occupied. The property located in the Studebaker Corridor being added to the acquisition list is part of a block that is needed to assemble a larger piece of property. The east portion of the block located in the Studebaker Corridor is currently owned by the Department of Redevelopment. The piece of property in the portion of the block located in the Studebaker Corridor currently owned by Hamilton Towing is also being acquired in order to assemble this larger piece of property. Mrs. Kolata stated that one written communication in support of the plan amendment was received. She asked that it be entered into the record and it reads as follows: Ann Kolata, Director City of South Bend Redevelopment 1200 County -City Building South Bend, IN 46601 February 20, 1998 0 . 101- South Bend Redevelopment Commission Regular Meeting - February 20, 1998 Dear Ms. Kolata: We are residents of the Southeast Neighborhood and we are writing to show our support for new housing in our neighborhood. The new construction along Broadway Street encourages us and we hope to see this project continue. We understand that there are homes in our neighborhood that are in very poor condition. We never like to see houses deteriorate but realize the problems that they create. However, many fine homes also exist in our neighborhood and we should preserve them. Most important, we recognize the need for new housing. The opportunity to use vacant lots for new housing construction encourages us to participate in this project. We know that there are many individuals and families living in the neighborhood that would like to own a new or improved home. The Southeast Neighborhood Housing Strategy is a good first step toward improving the housing in our neighborhood. We are excited to learn of your invitation to incorporate our ideas into your work. We have great confidence that our collaboration will produce fine results. We are pleased to learn of this endeavor and hope that we can help to improve the housing situation of our neighbors. It is with these thoughts in mind that we look forward to a successful housing program. Thank you for this opportunity to communicate with you. Sincerely, Michael Mather Katherine Licht Claudia Bueno Demetrec Johnson Marta Bueno Rise Silas Kyle Markham -7- W South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS a. continued.... Mr. Hunt opened the public hearing for anyone who wished to speak. "My name is Michael Mather, I'm the Pastor of the Broadway Christian Parish located at the corner of Carroll and Broadway Streets. The best asset we have in our community is the people who live there. New housing along this place, both on empty lots and replacing places that are both unlivable and places that have people living in them that are really in bad shape, will just strengthen both the number and strengthen the families of people living around there —both my neighbors who live near there and near the corner of Haney and St. Joseph Streets, but also the community. This a really good move. " "My name is Claudio Bueno, I live at 1201 East Haney, I've been therefor seventeen years. It's kind of a small house until I move into a bigger house. I told my wife let's look for a house or a vacant lot. We started looking around and we saw houses being built on Broadway. I said, "Let's build a new house!" Finally, I asked around and I talked to Rick Milton and 1 asked him about the cost. I'm interested in staying in my neighborhood. My kids are attending Riley High School and the new school is being built, the new Ivy Tech College is going up behind me. One of my kids is -8- South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS a. continued.... going to Ivy Tech and my oldest daughter is going to Indiana University. We want to stay in that neighborhood and my kids don't want to move anyway. We want to stay. I'm going to stay there and I think that it is a good idea that those houses are being built there. " Mr. Hunt asked if there was anyone else who wished to speak. There was no one else who wished to speak regarding Resolution No. 1 574. Mr. Hunt closed the public hearing for whatever action the Commission wished to take. Ms. Schwartz thanked all the people who attended today's public hearing and expressed their opinions regarding Resolution No. 1574 amending the Sample -Ewing Development Area Development Plan. She commented that the Commission is very cautious about taking any action in a neighborhood without having the support and backing of the neighborhood. The Commission wants to work with the people living in the southeast neighborhood and have this amendment part of an overall working together and looking for the future good of their neighborhood and the rest of the city. She stated that in the short time she has been on the Commission, one of the most exciting things she has seen happen is the increase in building new single - family housing in South Bend, particularly in the southeast neighborhood. In South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS a. continued.... Ms. Auburn stated that there are some well kept homes and non - maintained homes in the southeast neighborhood. She asked the people who attended the meeting in support of the Sample -Ewing Development Area Development Plan amendment, if they were willing to discuss issues and supply suggestions regarding the deteriorating homes in there neighborhood. Pastor Michael Mather stated that "From my perspective, the southeast residents are open for discussion regarding the deteriorating houses. The houses that are in deteriorating condition in the southeast neighborhood are owner occupied and tenant occupied. 1 have complained to the Department of Code Enforcement regarding a couple of homes in the southeast neighborhood that are in deteriorating condition. " Ms. Auburn commented that to her understanding, homeownership has always been a preference for people. She stated that she has spoken with Marco Mariani of the Neighborhood Planning Division regarding grants and low interest loans that could make rehabilitation of homes affordable for homeowners. Marco Mariani commented that as part of the Southeast Neighborhood Housing Strategy, providing an opportunity for project managers of the Neighborhood -10- South Bend Redevelopment Commission Regular Meeting - February 20, 1998 iM0 DkI1iA ftIRI 10 &W a. continued.... Planning Division to meet with residents in the southeast neighborhood who want a new or rehabbed home is one of the goals. He noted that there are a lot of good programs through the Neighborhood Planning Division, the Bureau of Housing and other housing providers within the city that can help people get into a better housing situation. Ms. Auburn reported that in the 1920s and 1930s, South Bend had the highest percentage of homeownership than any community in the United States. South Bend was held up as a model community because of the objectives that were accomplished to increase homeownership. Kyle Markham stated that "The one thing I had a concern about is that 1 have seen some of the homes going up around South Bend in the past year or two being made with shoddy materials less and than par workmanship. 1 think any homes that I would like to see go in there, I would want to see quality workmanship and top -rate materials. Other than that, you're dooming the neighborhood five years from now and it will be in worse shape than it is in now. Mr. Hunt asked Mr. Markham if he was referring to a specific project within the southeast neighborhood or to generality. Kyle Markham responded "1'm referring -11- co South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS a. continued.... to generalities that I have seen around. " Ms. Auburn asked Kyle Markham if he should observe the poor workmanship that he has brought forth today, to notify Marco Mariani of the Neighborhood Planning Division. b. Commission approval requested for Resolution No. 1574 amending the Sample -Ewing Development Area Development Plan. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission amended Resolution No. 1574 by removing tax key #18 -7026- 1031 for the property located at 133 Broadway owned by American Bankers Life Assurance. Upon a motion by Ms. Schwartz, seconded by Ms. Auburn and unanimously carried, the Commission adopted Resolution No. 1574, as amended, amending the Sample -Ewing Development Area Development Plan. C. Commission approval requested for Resolution No. 1578 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (Michiana Industrial Supply) :1 -12- COMMISSION ADOPTED RESOLUTION NO. 1574, AS AMENDED, AMENDING THE SAMPLE -EWING DEVELOPMENT AREA DEVELOPMENT PLAN - South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS (CONT.) c. continued.... Nancy Van Scoyk gave the staff report on this project. The proposed project is a 10,000 sf commercial building to be constructed on a 1.3 acre parcel for Michiana Industrial Supply. With the growth of Michiana Industrial Supply, it has made it necessary to expand their business space as well as their line of products. This will include light manufacturing, distribution, sales and servicing of MRO products. The estimated cost of the proposed project is $500,000. Michiana Industrial Supply has reached its limit and cannot grow any further without this redevelopment. Per the petition, it is estimated that this project will create three (3) new permanent jobs within the first year, representing a new annual payroll of $40,000 and maintain six (6) existing permanent full - time jobs and four (4) existing permanent part-time jobs with an annual payroll of $254,055. A review of the tax abatements previously granted finds that Michiana Industrial Supply 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 areas finds that the -13- South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS (CONT.) c. continued.... property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area, therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that Michiana Industrial Supply meets the qualifications for a three (3) year real property tax abatement. Using the estimated project cost of $350,000, the taxes generated during the three -year period total approximately $50,163. Taxes abated total approximately $33,422. Taxes paid with the abatement total $16,721. Steven Kubsch, the owner of Michiana Industrial Supply stated that he started in 1986 as a part-time business. In 1992, the business grew into full -time. Since 1992 to the present, eight new jobs have been added to Michiana Industrial Supply. With the expansion of Michiana Industrial Supply, another three jobs will be created. Michiana Industrial Supply imports chains from Germany and light manufacturing. Mr. Kubsch stated that the expansion of his business will help him locally and nationally. It is anticipated that the project will be completed by the end of 1998. -14- South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS (CONT.) c. continued.... Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1578 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (Michiana Industrial Supply) d. Commission approval requested for Resolution No. 1579 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (Kovas Door Company) Nancy Van Scoyk gave the staff report on this project. The proposed project is a 10,000 sf commercial building to be used as the principal operations for Kovas Door Company, a full -time overhead door company. The building is to be constructed on a 1.65 acre parcel. The total project cost is expected to exceed $300,000. This facility will consolidate other business operations for Kovas into a modern efficient building. Kovas Door Company is a full- service overhead door company and its operations include sales, distribution, installation, servicing, preparation, alteration, fabrication and repairs. Per the petition, it is estimated that this project will create two (2) new permanent -15- COMMISSION ADOPTED RESOLUTION NO. 1578 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (MICHIANA INDUSTRIAL SUPPLY) South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS (CONT.) d. continued.... jobs within the first year, representing a new annual payroll of $55,000 and maintain 12 existing permanent full -time jobs and three existing permanent part- time jobs with an annual payroll of $340,000. A review of the tax abatements previously granted finds that Kovas Door 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 areas finds that the property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area, therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that Kovas Door Company meets the qualifications for a three (3) year real property tax abatement. Using the estimated project cost of $300,000, the taxes generated over the three -year period total approximately $42,997. Taxes abated total $28,665. Tax paid with the abatement total $14,332. Dan Kovas, co -owner of Kovas Door Company, stated that his father started the -16- South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS (CONT.) d. continued.... company in 1979. Mr. Kovas stated that this new facility will consolidate four locations that are currently spread out on the west side of South Bend into one modern facility. Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Commission adopted Resolution No. 1579 approving an application for real property tax deduction for property located in the Airport Economic Development Area. ( Kovas Door Company) e. Commission approval requested for Resolution No. 1580 approving an application for personal property tax deduction for property located in the Airport Economic Development Area. (Total Enterprises, LTD) Nancy Van Scoyk gave the staff report on the project. Total Enterprises manufactures tooling primarily used in the automotive and office furniture industries. They operate from a customer print through their CAD /CAM system to produce a pattern from which an aluminum cast is made. These castings are then machined and assembled into a finished operating tool. Such products as office and automotive seats, arm rests, head rests, fire walls, floor pans and head liners are made from the tools. Their project calls for the purchase -17- COMMISSION ADOPTED RESOLUTION NO. 1579 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (KOVAS DOOR COMPANY) South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS (CONT.) e. continued.... of new foundry, pattern shop and engineering machinery and equipment in order to produce tooling more competitively. The estimated proposed project cost is approximately $350,000 to $750,000. Per the petition, it is estimated that this project will create two (2) new permanent full -time jobs within the first year, representing an annual payroll of $54,480 to $72,800 and will maintain sixty -seven (67) full -time jobs and one (1) part-time job, representing an annual payroll of $1,748,082. A review of the tax abatements previously granted finds that Total Enterprises has been granted one previous tax abatement. The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed use. A review of the Redevelopment areas finds that the property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area, therefore, the petition first requires the approval of the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that Total Enterprises meets the qualifications for a five (5) year personal property tax abatement. -18- South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS (CONT.) e. continued.... Using the total estimated equipment cost of $350,000, the taxes generated over the five -year period total $32,439. Taxes abated total $26,687. Taxes paid with the abatement total $5,752. Using the total estimated equipment cost of $750,000, the taxes generated over the five -year period total $69,511. Taxes abated total $57,185. Taxes paid with the abatement total $12,326. George Wiegand stated this is a technology change project. In the past year, Total Enterprises, LTD sales has increased from $2.5 million to $5 million. The CAD /CAM machining has allowed Total Enterprises, LTD to be much more efficient and accomplish tasks for its customers in a short period of time. In 1995, Total Enterprises, LTD had a total of 39 employees. After installing new equipment in 1996, the total number of employees grew to 69. Ms. Auburn asked why is the total estimated equipment cost of $350,00 to $750,000 so widespread. Mr. Wiegand responded that the reason why the estimated equipment cost is so wide is because it has been found in the past that additional equipment had been required to accompany the type of machinery that Total Enterprise, LTD is -19- South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS (CONT.) e. continued.... requesting tax abatement consideration for today. He noted that they expect the equipment cost to total approximately $500,000. Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Commission adopted Resolution No. 1580 approving an application for personal property tax deduction for property located in the Airport Economic Development Area. (Total Enterprises, LTD) E Commission approval requested for Resolution No. 1581 related to acquisition of property within the South Bend Central Development Area by Eminent Domain. Mrs. Kolata stated that this resolution sets a purchase price and authorizes the Director to send the purchase offer to the property owners of the property located at the corner of Monroe and Lafayette Streets. The property is needed for the new building of the Studebaker Museum. The purchase offer is contingent on the official approval and release of funds being received from the United States Department of Housing and Urban Development. Will COMMISSION ADOPTED RESOLUTION NO. 1580 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (TOTAL ENTERPRISES, LTD) South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS (CONT.) f. continued.... Upon a motion by Ms. Schwartz, seconded by Ms. Auburn and unanimously carried, the Commission adopted Resolution No. 1581 related to acquisition of property within the South Bend Central Development Area by Eminent Domain. g. Commission approval requested for Resolution No. 1582 approving a Modification to the Lease for Morris Performing Arts Center Project and approving the Execution of an Addendum to the Lease. Mrs. Kolata stated that on Wednesday, February 18, 1998, the bond issue for the Morris Performing Arts Center was sold. The net interest cost to the City is 4.951635 percent. City Securities was the successful buyer out of the three bids that were received. Mrs. Kolata thanked all of the people at the Morris Performing Arts Center who worked on the fund drive. She also thanked Cathy Roemer —City Controller, Jennifer Wilson and Michael Claytor at Municipal Consultants in Indianapolis and Randy Rompola and Rich Hill at Baker and Daniels. The Morris Performing Arts Center bond issue closing is scheduled for March 4, 1998. -21- COMMISSION ADOPTED RESOLUTION NO. 1581 RELATED TO ACQUISITION OF PROPERTY WITHIN THE SOUTH BEND CENTRAL DEVELOPMENT AREA BY EMINENT DOMAIN South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS (CONT.) g. continued.... Randy Rompola stated that Resolution No. 1582 approves the Lease Addendum and authorizes its execution. The Lease Addendum reduces the lease rental payments significantly. He noted that the Lease Addendum also amends the legal descriptions contained in the Lease, but the Addendum does not change the project description. When the initial Lease was developed, the actual scope of the project was defined relating to where the improvements were going to be located. It has been identified more specifically where the areas outside the footprint of the buildings (the Palais Royale and the Morris Performing Arts Center) are going to be located. The parking lot improvements and some of the improvements to the adjacent alley have been finalized. As a result of the finalization of the improvements, the project description now can be finalized. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1582 approving a Modification to the Lease for Morris Performing Arts Center Project and approving the Execution of an Addendum to the Lease. h. Commission approval requested for Resolution No. 1583 authorizing the transfer of real property to the South Bend Redevelopment Authority. -22- COMMISSION ADOPTED RESOLUTION NO. 1582 APPROVING A MODIFICATION TO THE LEASE FOR MORRIS PERFORMING ARTS CENTER PROJECT AND APPROVING THE EXECUTION OF AN ADDENDUM TO THE LEASE South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS (CONT.) h. continued.... Anne Bruneel stated that this resolution transfer a 36' wide strip of land behind the Morris Performing Arts Center, that the Commission owns, and the 7 ft of the vacated alley behind the Morris to the Redevelopment Authority. The bond issue requires the Redevelopment Authority to own the property where the Morris Performing Arts Center will be located. Upon a motion by Mr. Donoho, seconded by Ms. Schwartz and unanimously carried, the Commission adopted Resolution No. 1583 authorizing the transfer of real property to the South Bend Redevelopment Authority. I. Commission approval requested for professional services in the South Bend Central Development Area. (Dreisbach, asbestos removal specifications) The proposal received from ACM Environmental, Inc. is for asbestos removal specifications for a fee of $500.00. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission accepted the proposal from ACM Environmental, Inc. in the amount of $500.00 for professional services in the South Bend Central Development Area. (Dreisbach, asbestos removal specifications) -23- COMMISSION ADOPTED RESOLUTION NO. 1583 AUTHORIZING THE TRANSFER OF REAL PROPERTY TO THE SOUTH BEND REDEVELOPMENT AUTHORITY COMMISSION ACCEPTED THE PROPOSAL FROM ACM ENVIRONMENTAL, INC. IN THE AMOUNT OF $500.00 FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (DREISBACH, ASBESTOS REMOVAL SPECIFICATIONS) South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS (CONT.) j. Commission approval requested for asbestos abatement design and construction phase services for property located in the South Bend Central Development Area. (Morris Performing Arts Center) Mrs. Kolata stated that this proposal is from Grauvogel & Associates to develop specifications and then supervise the work related to the asbestos removal in the Morris Performing Arts Center for a fee not -to- exceed $6,640. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission ratified and accepted the proposal from Grauvogel & Associates in the amount of $6,640 for asbestos abatement design and construction phase services for property located in the South Bend Central Development Area. (Morris Performing Arts Center) k. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 1017 E. Donald St. ( Elzbieta Brown) Mrs. Kolata stated that the loan to Elzbieta Brown is in the amount of $8,200 at 5% for 10 years with monthly payments of $86.98. The grant is in the amount of $3,412.20. -24- COMMISSION RATIFIED AND ACCEPTED THE PROPOSAL FROM GRAUVOGEL & ASSOCIATES IN THE AMOUNT OF $6,640 FOR ASBESTOS ABATEMENT DESIGN AND CONSTRUCTION PHASE SERVICES FOR PROPERTY LOCATED IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (MORRIS PERFORMING ARTS CENTER) South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS (CONT.) k. continued.... Upon a motion by Ms. Schwartz, 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 1017 E. Donald St. (Elzbieta Brown) 1. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 128 E. Jennings. (Denise & Robert Hildebrand) Mrs. Kolata stated that the loan to Denise & Robert Hildebrand is in the amount of $5,750 at 4% for 10 years with monthly payments of $58.22. The grant is in the amount of $3,647.60. Upon a motion by Ms. Auburn, seconded by Ms. Schwartz and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property located at 128 E. Jennings. (Denise & Robert Hildebrand) m. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 746 S. 25th St. (Jennell Weaver) Mrs. Kolata stated that the loan to Jennell Weaver is in the amount of $11,600 at 5% for 15 years with monthly payments of -25- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 1017 E. DONALD ST. (ELZBIETA BROWN) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 128 E. JENNINGS. (DENISE & ROBERT HILDEBRAND) South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS (CONT.) m. continued.... $91.73. The grant is in the amount of $4,854.30. Upon a motion by Ms. Auburn, 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 746 S. 25th St. (Jennell Weaver) n. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 2010 S. Kendall St. (Matilda Fekete) Mrs. Kolata stated that a loan and grant was previously approved for Matilda Fekete. At that time, Ms. Fekete was informed that her roof was in poor condition and would soon need to be replaced. At that time, she declined to have the roof fixed but now has decided to move forward with it. Mr's. Kolata stated that the loan and grant to Matilda Fekete are being revised to include a new roof and the loan is now in the amount of $5,000 at 0% for 15 years with monthly payments of $27.78. The grant is now in the amount of $4,781.75. 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 -26- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 746 S. 25TH ST. (JENNELL WEAVER) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 2010 S. KENDALL ST. (MATILDA FEKETE) ti South Bend Redevelopment Commission Regular Meeting - February 20, 1998 S. Kendall St. (Matilda Fekete) o. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 410 - 412 N. William. (John Friedline) Mrs. Kolata stated that this Certificate of Waiver forgives $2,000 as of December 18, 1997. Ms. Auburn asked if the properties at 410 - 412 N. William have been inspected. Ms. Baumgartner stated that these properties have been inspected. Ms. Auburn asked if these properties have to been inspected again. Ms. Baumgartner responded that the properties will be inspected annually from an exterior standpoint. If any exterior violations are found, then Code Enforcement will be notified and they will go inside the home to inspect it. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property located at 410 - 412 N. William. (John Friedline) p. Commission approval requested for proposal from Crowe, Chizek and Company LLP for professional services in the Sample -Ewing Development Area. Mrs. Kolata stated that this proposal is for an analysis of various relocation issues -27- COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY LOCATED AT 410 - 412 N. WILLIAM. (JOHN FRIEDLINE) L South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS (CONT.) p. continued.... affecting a business in the area. The cost for this work is not -to- exceed $10,000. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission accepted the proposal from Crowe, Chizek and Company LLP for professional services in the Sample - Ewing Development Area. q. Commission approval requested for proposal from the Polis Center for professional services. Mrs. Kolata stated that the Polis Center is connected with IUPU in Indianapolis and the Polis Center will provide computer training for the Redevelopment staff. The training will include Microsoft Access 97 and Arc View. Arc View is a mapping program that the staff is currently using and Access 97 is a database. The intent is to link the two programs together. The training dates are February 25 and 26, 1998. The cost of this service is $1,480. We expect to also have the Polis Center set up our database. We will bring a proposal for this service to a future Commission meeting. Mrs. Kolata thanked Joanna Smith for working with the Polis Center in getting this training organized. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission accepted the proposal -28- COMMISSION ACCEPTED THE PROPOSAL FROM CROWE, CHIZEK AND COMPANY LLP FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS (CONT.) q. continued.... from the Polis Center in the amount of $1,480 for professional services. r. Staff report on proposals for marketing and property management of Redevelopment owned retail space. Mrs. Kolata stated that two proposals were received two weeks ago to serve as both the leasing agent and property manager of the Redevelopment owned retail space. The retail properties related to this proposal include the Palais Royale retail space, Billie's Catering in the Wayne Garage and the Leighton Plaza.. It would also include Osco although there is no property management at Osco at this time since the tenant handles all of that. The staff recommended having only one leasing agent manage the downtown retail space. Amy Tweeten prepared a staff report briefly summarizing the proposals received from the Stone Real Estate Group and CB/Robert Bradley Associates. The staff recommends accepting the proposal from CB/Robert Bradley Associates because they have been the property manager of the Palais Royale for a number of years and Redevelopment has been very satisfied with their performance. CB/Robert Bradley Associates has, in- house, all of the standard trades on staff and can readily handle repairs. -29- COMMISSION ACCEPTED THE PROPOSAL FROM THE POLIS CENTER IN THE AMOUNT OF $1,480 FOR PROFESSIONAL SERVICES r South Bend Redevelopment Commission Regular Meeting - February 20, 1998 6. NEW BUSINESS (CONT.) r. continued.... The staff felt that CB/Robert Bradley Associates has more presence in the retail market place at this time. The staff recommends discussing CB/Robert Bradley Associates' property management fee with them as it assumes more property management than currently anticipated. Ms. Auburn stated that the Commission would like an updated report on the property that the awarded company is managing. Upon a motion by Ms. Auburn, seconded by Mr. Doncho and unanimously carried, the Commission accepted the proposal from CB/Robert Bradley Associates for marketing and property management of Redevelopment owned retail space, subject to the staff discussing the terms of CB/Robert Bradley Associates' contract. Ms. Schwartz abstained. s. Staff report on acquisition of property in the Sample -Ewing Development Area. Mrs. Kolata stated that a purchase offer was sent to the owners of Bandito's Burritos. The property owners countered with a combined offer regarding the real estate and relocation costs. The property owners requested a lump sum payment of $92,295 for both the purchase of the -30- COMMISSION ACCEPTED THE PROPOSAL FROM CB/ROBERT BRADLEY ASSOCIATES FOR MARKETING AND PROPERTY MANAGEMENT OF REDEVELOPMENT OWNED RETAIL SPACE, SUBJECT TO THE STAFF DISCUSSING THE TERMS OF CB/ROBERT BRADLEY ASSOCIATES' CONTRACT South Bend Redevelopment Commission Regular Meeting - February 20, 1998 property and relocation cost. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission accepted the counter offer for purchase and relocation of Bandito's Burritos in the combined amount of $92,295, in the Sample -Ewing Development Area. 7. PROGRESS REPORTS Mrs. Kolata stated that the Gridiron Row will be having a ceremony on Wednesday, February 25, 1998, at 10:00 a.m., to start the opening of the storefronts facing the Hall of Fame. South Bend Heritage Foundation will be having a Dedication/Ribbon Cutting and Open House at the Robertson apartments on Friday, February 27, 1998 at 10:00 a.m. and an Open House on Saturday, February 28, 1998. The next Regular Meeting of the Redevelopment Commission is scheduled for March 6, 1998 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Donoho made a motion that the meeting be adjourned. Ms. Auburn seconded the motion and thSayWg was adjourned at 11:20 a.m. Robert W. Hunt, President COMMISSION ACCEPTED THE COUNTER OFFER FOR PURCHASE AND RELOCATION OF BANDITO'S BURRITOS IN THE COMBINED AMOUNT OF $92,295 IN THE SAMPLE -EWING DEVELOPMENT AREA. ADJOURNMENT <� G� Ann E. Kolata, Director -31- � 4 February 20, 1998 Ann Kolata, Director City of South Bend Redevelopment 1200 County -City Building South Bend, In 46601 Dear Ms. Kolata: We are residents of the Southeast Neighborhood and we are writing to show our support for new housing in our neighborhood. The new construction along Broadway Street encourages us and we hope to see this project continue. We understand that there are homes in our neighborhoods that are in very poor condition. We never like to see houses deteriorate but realize the problems that they create. However, many fine homes also exist in our neighborhood and we should preserve them. Most important, we recognize the need for new housing. The opportunity to use vacant lots for new housing construction encourages us to participate in this project. We know that there are many individuals and families living in the neighborhood that would like to own a new or improved home. The Southeast Neighborhood Housing Strategy is a good first step toward improving the housing in our neighborhood. We are excited to learn of your invitation to incorporate our ideas into your work. We have great confidence that our collaboration will produce fine results. We are pleased to learn of this endeavor and hope that we can help to improve the housing situation of our neighbors. It is with these thoughts in mind that we look forward to a successful housing program. Thank you for this opportunity to communicate with you. Sincerely, kd�' � 0' e4 'I dzM- L J0 -1�2� 2 e_'-O Le Individuals who signed letter to Ann Kolata dated February 20, 1998 Michael Mather Claudio Bueno Marta Bueno Kathryn Licht Kyle Markham Rise Silas Demetrec L. Johnson A