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HomeMy WebLinkAboutRM 03-06-98SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING March 6, 1998 10:00 a.m. Presiding: Robert W. Hunt, President Swearing in of New Commissioner 1308 County -City Building 227 West Jefferson Boulevard South Bend, Indiana Loretta Duda administered the oath of office to SWEARING IN OF NEW COMMISSIONER BY CITY the following Commissioner: Mr. Hardie Blake. CLERK, LORETTA DUDA 1. ROLL CALL Members Present: Mr. Robert W. Hunt, President Mr. Michael Donoho, Vice - President Ms. Eugenia S. Schwartz, Secretary Mr. Hardie Blake Members Absent: Mr. Philip 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 Business Assistance: Ms. Nancy Van Scoyk, Economic Development Specialist Mr. Mike Beitzinger, Economic Development Specialist Bureau of Housing: Ms. Mary Beth Thompson Others: Mr. Chris Davey, Cressy & Everett Mr. Jim Brown, Beeler & Brown, LLC. and Davey, LLC Mr. Patrick McMahon, Project Future Mr. Beeler, Beeler & Brown, LLC. and Davey, LLC Mr. David Harrison, Harrison Management d.b.a Container Service Corporation -1- South Bend Redevelopment Commission Regular Meeting - March 6, 1998 Mrs. Kolata introduced Hardie Blake, whom the Mayor appointed as the new Redevelopment Commissioner replacing Paula Auburn, who has served on the Redevelopment Commission for 19 years. Paula Auburn voluntarily asked to be replaced and she will be honored at the next Redevelopment Commission meeting. Mrs. Kolata stated the Redevelopment Commission is pleased to have Mr. Blake on the Commission. 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of Friday, February 20,1998. Upon a motion by Mr. Donoho, seconded by Ms. Schwartz and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, February 20, 1998. b. Commission approval of the Minutes of the Special Meeting of Tueday, February 24,1998. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the Minutes of the Special Meeting of Tuesday, February 24, 1998. 0W. ig - -.1110 KI COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, FEBRUARY 20, 1998 COMMISSION APPROVED THE MINUTES OF THE SPECIAL MEETING OF TUESDAY, FEBRUARY 24, 1998 Redevelopment Commission Claims submitted March 6, 1998 for ratification & approval. 212 CDBG COMMUNITY DEVELOPMENT Business Systems $6.50 American Planning Association $170.00 Federal Express $44.75 -2- Y a South Bend Redevelopment Commission Regular Meeting - March 6, 1998 3. APPROVAL OF CLAIMS (CONT.) 212 CDBG COMMUNITY DEVELOPMENT East Race Printing & Graphics $25.80 City of South Bend $14.84 Liability Insurance $437.00 Tri- County News $19.10 New Life Restoration $347.71 South Bend Water Works $15.56 Northern Indianan Public Service Co. $87.55 South Bend Tribune $16.86 Jeanette Fowler & Unicorn Management $1,032.00 East Race Printing & Graphics $14.72 360 $68.66 Peirce & Associates $60.00 t►" IMED Cole Associates Inc. $6,230.00 J.F New & Associates $6,791.50 Owner's Association at Blackthorn, Inc. $52,566.85 Cole Associates Inc. $11,767.50 Cole Associates Inc. $13,350.00 Bernard Diedrich $3,750.00 414 SAMPLE -EWING FUND R. E. McCloskey & Associates, Inc. $2,500.00 Troyer Group Inc. $2,737.50 Cole Associates Inc. $1,488.51 Grauvogel & Associates $255.00 Grauvogel & Associates $2,030.00 ACM Environmental, Inc. $500.00 CB/Robert Bradley Associates, LLC $414.76 CB/Robert Bradley Associates, LLC $538.72 CB/Robert Bradley Associates, LLC $527.23 C & S Service, Inc. $198.00 W.W. Grainger $38.35 Rose Exterminators $40.00 Howard Park Hardware $13.96 -3- South Bend Redevelopment Commission Regular Meeting - March 6, 1998 3. APPROVAL OF CLAIMS (CONT.) 420 SBCDA GENERAL ACCOUNT Howard Park Hardware $32.27 Michiana Lock & Key $9.75 Superior Waste Systems $65.80 American Electric Power $11.52 South Bend Water Works $158.06 Northern Indiana Public Service Co. $876.81 Ideal Consolidated, Inc. $161.85 619 BLACKTHORN Meadowbrook Golf Management, Inc. $6,450.00 Upon a motion by Mr. Donoho, seconded by COMMISSION RATIFIED AND APPROVED THE Mr. Blake and unanimously carried, the CLAIMS SUBMITTED MARCH 6, 1998, AND Commission ratified and approved the Claims ORDERED THE CHECKS TO BE RELEASED submitted March 6, 1998, and ordered the checks to be released. Ms. Schwartz abstained. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. Mr. Kolata asked permission to add item 6.z. to the agenda. There were no objections and item 6.z. was added to the agenda. 6. NEW BUSINESS a. Election of Secretary Mrs. Kolata stated that the Commission needs to elect a new Secretary since Ms. Auburn is no longer on the Commission. -4- THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS ITEM 6.Z. WAS ADDED TO THE AGENDA South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS a. continued.... Mr. Donoho nominated Ms. Eugenia S. Schwartz to serve as Secretary of the South Bend Redevelopment Commission. Mr. Hunt seconded the nomination. There were no further nominations. The vote being unanimous, Ms. Eugenia S. Schwartz was elected Secretary for 1998. b. Receipt of Bids and Bid Opening for property in the Sample -Ewing Development Area. (Tax Key #18 -3042- 1612 - former Miller Paint property) Mrs. Kolata stated that no bids were received as of 10:00 a.m., today. Mrs. Kolata stated that she would like to move items k., 1., and m. to the front of the agenda. There was no objection to hearing these items first. k. Commission approval requested for Resolution No. 1590 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (Beeler & Brown, LLC and Davey, LLC) Mike Beitzinger gave the staff report on this project. Beeler & Brown Properties LLC & Davey, LLC is in the business of acquiring and developing long term real estate holdings. They are proposing to construct three new buildings on the identified lots. The new -5- South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) L continued.... buildings are the first of up to ten buildings being proposed within the Industrial Park. All the buildings will be built on a speculative basis and the end users have not been determined. The building on Lot #2 will be 23,000 sf, with an estimated cost of $556,000, the building on Lot #3 will be 27,800 sf, costing $750,000 and the building on Lot #8 will be 36,700 sf with an estimated cost of $914,000. Per the petition, it is estimated that these three projects will create more than forty (40) new permanent jobs within the first year, representing new annual payrolls in excess of $1,400,000. A review of the tax abatements previously granted finds that Beeler & Brown, LLC and Davey, LLC have not been granted any previous tax abatements. The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed use. 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 Beeler & Brown, LLC and Davey, LLC do not meet the qualifications for an abatement due to the inability of the In South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) k. continued... developer to identify the end users of the buildings. However, Beeler & Brown, LLC and Davey, LLC are requesting consideration of a special exception real property tax abatement for several reasons. First, Beeler & Brown, LLC and Davey, LLC have cited the enormous risk taken by obligating themselves to mortgages with no guarantees of a sale or lease revenues to meet these obligations. Second, they have cited the additional costs associated with the developments such as: nearly $125,000 for public road work; over $25,000 for uniform signage throughout the development; another $25,000 for entryway signage, landscaping and sprinkler system and nearly $30,000 for mounding and pine trees to create a buffer between nearby residential areas. Third, Beeler & Brown, LLC and Davey, LLC have cited the huge overall cost of the development. When completed, the estimated total cost for the entire development is expected to exceed $10 million. Considering these extenuating factors, Beeler & Brown, LLC and Davey, LLC are respectfully requesting consideration of a special exception tax abatement. Using guidelines established by the Community and Economic Development Committee of the South Bend Common Council, each building will be considered eligible for tax abatement under the requirements of Industrial Development City Wide. Thus Lot #1 is eligible for six (6) years of real -7- South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) L continued... property tax abatement, Lot #3 is eligible for six (6) years of real property tax abatement and Lot #8 is eligible for ten (10) years of real property tax abatement. Once an end user of each building is identified, a final determination will be made as to eligibility and the term (or length) of each abatement will be established. For example, if the end user is a manufacturing company, the term of the abatement would not change since it falls under the requirements of Industrial Development City Wide. If the end user is a warehousing company, then the warehousing requirements under Industrial Development City Wide would be used and Lots #1 and #2 would not receive abatement because the buildings do not meet the minimum requirement of 25,000 sf for the six -year abatement. If any other type of use (e.g. office, service, retail, etc.) is identified, that particular lot would not receive abatement. If there is mixed use, the actual major use of the building would determine eligibility for tax abatement and the above criteria would establish the term of the abatement. Using the estimated project cost of $565,000 for Lot #2 located within the W. Cleveland Road Industrial Park, the taxes generated over the six -year period total approximately $162,438. Taxes abated total approximately $95,477. Taxes still paid with the abatement total approximately $66,961. -8- South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) k. continued... Jim Brown presented the site plan. He stated he developed Lots #1 and #2 in Shively Industrial Park. He felt that there's a great opportunity for Beeler & Brown, LLC and Davey, LLC in building the spec structures because of the 97.8 % occupancy rate in South Bend. He presented a report to the Commission related to what is proposed for each lot and the cost details. Page #1 detailed the cost of the overall development. Page #2 detailed costs lot by lot for Beeler & Brown, LLC and Davey, LLC and provided information on who their internal users are. Lot #1 has been sold to Kovas and Metro, who anticipate construction of their projects to start immediately. Lot #2 is a spec building that Mr. Brown is constructing and will retain ownership. Internal users for Lot #2 and Lot #3 have not been determined. Lot #2 is 20,000 sf and is expandable to 23,000 sf. It has a very nice masonry facade. The building is incorporated with a common drive with an easy access to the adjacent property. Lot #3 is 27,800 sf. Lot #8 has an elaborant glass facade entrance. The two buildings (World Access and Carlton Manufacturing) on Lot #1 and Lot #2 in the Shively Industrial Park were constructed in a way to maintain the integrity of the Park by mounding and landscaping around the Cleveland Road West signage. la South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) k. continued... Beeler & Brown, LLC and Davey, LLC constructed a mound along the back of their property to create a buffer between their property and the residential property. There currently is a line of pines along the back of their property and there will be three lines of 8', mature, staggered pines along the property line. They have been working with Tom Sexton to develop villas on their property. The process for developing the road system is underway. Construction of the 42, 1,600 to 1,800 sf, residential villas is anticipated for mid -April of 1998. The economic impact assessment of the r development on Lots #1 - #10 is estimated to have an annual payroll of $15,896,584. Chris Davey of Cressy & Everett stated that he has been in the real estate business for approximately 22 years and has worked on Commercial/Industrial sites for a very long time. Approximately 10 to 15 years ago, the Industrial Foundation created some very nice industrial parks but they are no longer active in this area. Beeler & Brown, LLC and Davey, LLC took a look at the industrial market and saw a very healthy climate. Mr. Davey stated that he has worked very closely with Pat McMahon of Project Future to find a site for industrial development. Mr. Davey also stated that there are people who want to be in the mid -West on a temporary basis and are willing to travel to South Bend, Elkhart, Michigan City, -10- South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) k. continued... LaPorte and Southern Michigan. If there are no available buildings, then these people will go to the next community until they find something that meets their needs. Pat McMahon stated that he sat in on the City Council meeting regarding Jim Brown and Chris Davey's projects. He stated that the one thing that Project Future has not been able to sell is available space because there has been virtually none in South Bend. He also stated that years ago, a bank would finance a loan at 100 percent for a speculative building. Since the economy has changed, a bank will not loan money to someone who is planning to build a speculative building. If someone wants to build a speculative building, they have to use their own resources in order to move forward with these projects. Mr. McMahon's representation was that the City of South Bend has an opportunity to capture additional business if it would put something in place to encourage speculative development. He suggested that South Bend's opportunities can be enhanced with some type of tax abatement in place, at the highest level (e.g. manufacturing zoning), for anyone who is planning to develop a speculative building. Ms. Schwartz asked Mr. Brown if the two speculative buildings he's proposing to develop will have some Restrictions and Covenants. Mr. Brown responded "yes." -11- South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) k. continued... Anne Bruneel stated that the special exception provision is already in place in the tax abatement ordinance. She also stated that this Ordinance allows the Council to adopt this provision under special exceptions. The staff recommends adopting Resolution No. 1590. Ms. Schwartz commented that she attended the Council Committee meeting regarding this project and it was her understanding that the Council is in favor of this method of handling tax abatement for speculative buildings. Upon a motion by Mr. Donoho, seconded by Mr. Blake and unanimously carried, the Commission adopted Resolution No. 1590 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (Beeler & Brown, LLC and Davey, LLC) 1. Commission approval requested for Resolution No. 1591 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (Beeler & Brown, LLC and Davey, LLC) Upon a motion by Mr. Donoho, seconded by Ms. Schwartz and unanimously carried, the Commission adopted Resolution No. 1591 approving an application for real property -12- COMMISSION ADOPTED RESOLUTION NO. 1590 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (BEELER & BROWN, LLC AND DAVEY, LLC) South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) 1. continued... tax deduction for property located in the Airport Economic Development Area. (Beeler & Brown, LLC and Davey, LLC) m. Commission approval requested for Resolution No. 1592 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (Beeler & Brown, LLC and Davey, LLC) Upon a motion by Mr. Donoho, seconded by Ms. Schwartz and unanimously carried, the Commission adopted Resolution No. 1592 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (Beeler & Brown, LLC and Davey, LLC) c. Commission approval requested for Resolution No. 1584 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (Harrison Management Company d.b.a. Container Service Corporation) Nancy Van Scoyk gave the staff report on this project. Harrison Management Company d.b.a Container Service Corporation is a manufacturer of corrugated containers. Their project calls for the purchase of new equipment and an addition to the existing building. Harrison Management Company -13- COMMISSION ADOPTED RESOLUTION NO. 1591 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (BEELER & BROWN, LLC AND DAVEY, LLC) COMMISSION ADOPTED RESOLUTION NO. 1592 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (BEELER & BROWN, LLC AND DAVEY, LLC) South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) c. continued... d.b.a. Container Service Corporation will purchase a Ward Series 11500 Flexo- Folder Gluer, a Sun Automation Lead Edge Feeder, a C &M Power Conveyor System and a AEI Cad Cam Design System. This equipment will be used in the manufacturing of corrugated containers and will enable Container Service Corporation to double present production capacity. The total estimated cost of the equipment is $1,604,394. The building addition will be 56,200 sf with an estimated cost of $1,150,000 to be used for warehouse and manufacturing. Per the petition, it is estimated that this project will create 11 new permanent jobs within the first year, representing a new annual payroll of $330,000 and will maintain 42 existing permanent full time jobs with an annual payroll of $1,245,000. A review of the tax abatements previously granted finds that Harrison Management Company d.b.a. Container Service Corporation has been granted three previous tax abatements. Harrison Management Company d.b.a. Container Service Corporation 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 -14- South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) c. continued... that the property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area, therefore, the petition for property tax abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that Harrison Management Company d.b.a. Container Service Corporation meets the qualifications for a ten year real property tax abatement and a five year personal property tax abatement. Using the estimated project cost of $1,150,000, the real property taxes generated over the ten -year period total approximately $549,408. Taxes abated total approximately $271,957. Taxes still paid with the abatement total approximately $277,451. Using the total estimated equipment cost of $1,604,394, the personal property taxes generated over the five -year period total approximately $148,701. Taxes abated total $122,333. Taxes still paid with the abatement total $26,368. David Harrison stated that this is a family business. The company had sales between $5 - $6 million. Sales subsequently grew to twice that amount. Fifteen to 20 percent of sales revenue is the annual payroll. Mrs. Kolata asked Mr. Harrison what the current size of the building is. Mr. Harrison -15- South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) c. continued... responded that the building is 44,000 sf. The addition will more than double the size of the current building. Upon a motion by Mr. Donoho, seconded by Mr. Blake and unanimously carried, the Commission adopted Resolution No. 1584 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (Harrison Management d.b.a. Container Service Corporation) d. Commission approval requested for Resolution No. 1585 approving an application for personal property tax deduction for property located in the Airport Economic Development Area. (Container Service Corporation) Upon a motion by Mr. Donoho, seconded by Mr. Blake and unanimously carried, the Commission adopted Resolution No. 1585 approving an application for personal property tax deduction for property located in the Airport Economic Development Area. (Container Service Corporation) e. Commission approval requested for Resolution No. 1586 approving of the transfer of title to certain real property owned by the South Bend Redevelopment Authority to the Commission, authorizing the subsequent transfer of said real property and certain actions related thereto. -16- COMMISSION ADOPTED RESOLUTION NO. 1584 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (HARRISON MANAGEMENT D.B.A. CONTAINER SERVICE CORPORATION) COMMISSION ADOPTED RESOLUTION NO. 1585 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (CONTAINER SERVICE CORPORATION) r South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) e. continued... Mrs. Kolata stated that this resolution transfers a piece of property, owned by the Redevelopment Authority, to the Redevelopment Commission and will subsequently be transferred to South Bend Leased Housing Limited Partnership. The resolution also authorizes execution of the Quit -Claim Deed and authorizes the execution of an Addendum to Lease between the Redevelopment Authority and the Commission. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1586 approving of the transfer of title to certain real property owned by the South Bend Redevelopment Authority to the Commission, authorizing the subsequent transfer of said real property and certain actions related thereto. f. Commission approval requested for Resolution No. 1587 approving the Fair Re -Use Value of property in the Airport Economic Development Area. Mrs. Kolata noted that items f., g., h., and j. are all related to the 63 acres of land owned by the Redevelopment Commission, located in the US 31 Industrial Park. The property needs to be put up for bid. Resolution No. 1587 sets the fair re -use value for the property for individual lots and also sets the value for a large parcel containing a number of lots. -17- South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) L continued... Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1587 approving the Fair Re -Use Value of property in the Airport Economic Development Area. g. Commission approval requested for Bid Specifications and Design Considerations for the US 31 Industrial Park located in the Airport Economic Development Area. Owen Rock presented a Staff Report to the Commission requesting its acceptance of the Bid Specifications and Design Considerations developed for the land in the northeast corner of the St. Joseph Valley Parkway and Brick Road, also known as US 31 Industrial Park in the Airport Economic Development Area. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the Bid Specifications and Design Considerations for the US 31 Industrial Park located in the Airport Economic Development Area. h. Commission approval requested to publish Notice of Intended Sale of Property in the Airport Economic Development Area with publication dates of March 13 and 20, 1998, and receipt of bids at 10:00 a.m., on April 3,1998. (US 31 Industrial Park) -18- COMMISSION ADOPTED RESOLUTION NO. 1587 APPROVING THE FAIR RE -USE VALUE OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA COMMISSION APPROVED THE BID SPECIFICATIONS AND DESIGN CONSIDERATIONS FOR THE INDUSTRIAL PARK LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) h. continued... Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the publication of the Notice of Intended Sale of Property in the Airport Economic Development Area with publication dates of March 13 and 20, 1998, and receipt of bids at 10:00 a.m., on April 3, 1998. (US 31 Industrial Park) i. Commission approval requested for Resolution No. 1588 approving Declaration of Protective and Restrictive Covenants of the Second Blackthorn Industrial Parcel. Mrs. Kolata stated that these covenants are for the 17 acres of land located south of the Toll Road and west of the Bypass in the Second Blackthorn Industrial Parcel. The covenants include design requirements including a restriction that all buildings must be of masonry construction. Upon a motion by Mr. Donoho, seconded by Mr. Blake and unanimously carried, the Commission adopted Resolution No. 1588 approving Declaration of Protective and Restrictive Covenants of the Second Blackthorn Industrial Parcel. j. Commission approval requested for Resolution No. 1589 approving Declaration of Protective and Restrictive Covenants of the US 31 Industrial Park. -19- COMMISSION APPROVED THE PUBLICATION OF THE NOTICE OF INTENDED SALE OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA WITH PUBLICATION DATES OF MARCH 13 AND 20, 1998, AND RECEIPT OF BIDS AT 10:00 A.M., ON APRIL 3, 1998. (US 31 INDUSTRIAL PARK) COMMISSION ADOPTED RESOLUTION NO. 1588 APPROVING DECLARATION OF PROTECTIVE AND RESTRICTIVE COVENANTS OF THE SECOND BLACKTHORN INDUSTRIAL PARCEL South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) j. continued... Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1589 approving Declaration of Protective and Restrictive Covenants of the US 31 Industrial Park. n. Commission approval requested for Addendum I to a Contract with the City of South Bend for Community Development Block Grant funds for the South Gateway Improvements (CD97 - 301) Mrs. Kolata explained that the Addendum extends the Contract to December 31, 1998. Upon a motion by Mr. Blake, seconded by Mr. Donoho and unanimously carried, the Commission approved Addendum I to a Contract with the City of South Bend for Community Development Block Grant funds for South Gateway Improvements (CD97 -301) o. Commission approval requested for Addendum I to a Contract with the City of South Bend for Community Development Block Grant funds for the State Theater Facade Renovation (CD97 - 305) Mrs. Kolata explained that the Addendum extends the Contract to December 31, 1998. -20- COMMISSION ADOPTED RESOLUTION NO. 1589 APPROVING DECLARATION OF PROTECTIVE AND RESTRICTIVE COVENANTS OF THE US 31 INDUSTRIAL PARK COMMISSION APPROVED ADDENDUM I TO A CONTRACT WITH THE CITY OF SOUTH BEND FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR SOUTH GATEWAY IMPROVEMENTS (CD97 -301) South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) o. continued... Upon a motion by Mr. Blake, seconded by Mr. Donoho and unanimously carried, the Commission approved Addendum I to a Contract with the City of South Bend for Community Development Block Grant funds for the State Theater Facade Renovation (CD97 -305) p. Commission approval requested for proposal from Marathon Pipeline Company for professional services related to the Blackthorn Corporate Park. Mrs. Kolata stated that this proposal is to study possible relocation routes and costs for a gasoline pipeline located in the Blackthorn Corporate Park. The cost for this work is not -to- exceed $8,000. Upon a motion by Mr. Donoho, seconded by Ms. Schwartz and unanimously carried, the Commission approved the proposal from Marathon Pipeline Company in the not -to- exceed amount of $8,000 for professional services related to the Blackthorn Corporate Park. q. Commission approval requested for proposal from the Troyer Group for a feasibility study of property located in the Sample -Ewing Development Area. Mrs. Kolata asked that this item be tabled until the next meeting. There were no objections and item 6.q. was -21- COMMISSION APPROVED ADDENDUM I TO A CONTRACT WITH THE CITY OF SOUTH BEND FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR THE STATE THEATER FACADE RENOVATION (CD97 -305) COMMISSION APPROVED THE PROPOSAL FROM MARATHON PIPELINE COMPANY IN THE NOT -TO- EXCEED AMOUNT OF $8,000 FOR PROFESSIONAL SERVICES RELATED TO THE BLACKTHORN CORPORATE PARK ITEM 6.Q. WAS TABLED South Bend Redevelopment Commission Regular Meeting - March 6, 1998 tabled. r. Commission approval requested for proposal from Cole Associates, Inc. for professional services for property located in the Airport Economic Development Area. Mrs. Kolata stated that the Department of Redevelopment is working on a Development Plan for the area West of Olive Road to apply for some grants from the State for road improvements. As part of that planning, we need to have a survey of the potential right -of -way at the intersection of Olive and Old Cleveland. AK Upon a motion by Mr. Donoho, seconded by Mr. Blake and unanimously carried, the Commission accepted the proposal from Cole Associates, Inc. in the amount of $510.00 for professional services in the Airport Economic Development Area. s. Commission approval requested for Satisfaction of Obligations and Release of Mortgage for property located at 410 - 412 N. William. (John Friedline) Mrs. Kolata stated that John Friedline has met all of the obligations of the rental rehab program. Upon a motion by Mr. Blake, seconded by Mr. Donoho and unanimously carried, the Commission approved the Satisfaction of Obligations and Release of Mortgage for property located at 410 - 412 N. William. (John Friedline) -22- COMMISSION ACCEPTED THE PROPOSAL FROM COLE ASSOCIATES, INC. IN THE AMOUNT OF $510.00 FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA COMMISSION APPROVED THE SATISFACTION OF OBLIGATIONS AND RELEASE OF MORTGAGE FOR PROPERTY LOCATED AT 410 - 412 N. WILLIAM. (JOHN FRIEDLINE) South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) t. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 2106 W. Indiana. (Shuntae L. Williams) Mrs. Kolata stated that the loan to Shuntae L. Williams is in the amount of $3,550 at 4% for 10 years with monthly payments of $40.63. The grant is in the amount of $2,244. Upon a motion by Mr. Donoho, 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 2106 W. Indiana. (Shuntae L. Williams) u. Commission approval requested for Loan and Grant connection with the Affordable Loan Program for property located at 229 E. Dubail. (Marsha A. Reaves) Mrs. Kolata stated that the loan to Marsha A. Reaves is in the amount of $11,100 at 2% interest for 20 years with monthly payments of $58.49. There is no grant associated with this loan. Upon a motion by Mr. Donoho, seconded by Ms. Schwartz and unanimously carried, the Commission approved the Loan in connection with the Affordable Loan Program for property located at 229 E. Dubail. (Marsha A. Reaves) -23- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 2106 W. INDIANA. (SHUNTAE L. WILLIAMS) COMMISSION APPROVED THE LOAN IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 229 E. DUBAIL (MARSHA A. REAVES) South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) v. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 1103 S. 30th St. (Eugene Schrader) Mrs. Kolata stated that the loan to Eugene Schrader is in the amount of $6,200 at 0% for 5 years with monthly payments of $103.33. The grant is in the amount of $6,022.50. Upon a motion by Mr. Donoho, 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 1103 S. 30th St. (Eugene Schrader) w. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 2806 Prast Blvd. (Inez M. King) Mrs. Kolata stated that the loan to Inez King is in the amount of $6,700 at 0% for 10 years with monthly payments of $55.83. The grant is in the amount of $6,534. 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 2806 Prast Blvd. (Inez M. King) -24- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 1103 S. 30TH ST. (EUGENE SCHRADER) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 2806 PRAST BLVD. (INEZ M. KING) k I . South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) z. Staff report on acquisition of property in the Sample -Ewing Development Area. Mrs. Kolata stated that there was no Staff THERE WAS NO STAFF REPORT Report. y. Staff report on acquisition /disposition of property in the South Bend Central Development Area. Mrs. Kolata stated that a counter proposal was received from SSP Properties in response to the purchase offer Redevelopment sent for the lot at Monroe and Lafayette, adjacent to the Studebaker Museum. The counter proposal also includes an offer to purchase part of the Dreisbach site. It was Redevelopment's intention to purchase the lot located at Monroe and Studebaker Streets for the Studebaker Museum. However, unbeknownst to the Division of Redevelopment, SSP Properties purchased the lot and secured a lease with the General Services Administration to locate a new Social Security Office on that site. Redevelopment decided to purchase the property before the Social Security building was constructed. There have been a series of negotiations between SSP Properties, the General Services Administration and the Division of Redevelopment concerning this situation and we have now come to an agreement that is being presented today. The agreement calls for SSP Properties to -25- 6 '} • South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) y. continued... purchase the site on Michigan Street —a portion of the Dreisbach property— beginning at the northwest corner of the site and having 287 feet of frontage on Michigan Street and 161.5 feet of frontage on South Street. The size of the site is slightly over 1 acre. The purchase price is $4.00 a sf ($185,400). Redevelopment will pay SSP Properties $270,000 for the lot on Monroe and Lafayette Streets, which is the purchase price that SSP Properties paid for the site, plus costs incurred related to relocating the building plan and building to the new site at Michigan and South. The purchase offer was in the amount of $270,000 and SSP Properties has accepted that amount. Redevelopment agrees to pay SSP Properties' additional costs and SSP Properties will provide invoices for all of the additional costs. Redevelopment will pay for the demolition of the Dreisbach building. SSP Properties requested that it receive a cleared, environmentally clean and certified parcel. These agreements are contingent upon the Social Security Administration and the General Services Administration approval. The deadline for the approval of each party involved in this transaction is April 30, 1998, with a simultaneous closing to occur by June 30, 1998. It is estimated that the Dreisbach building demolition will be completed sometime in May 1998. All of the terms of this -26- J h • South Bend Redevelopment Commission Regular Meeting - March 6, 1998 6. NEW BUSINESS (CONT.) y. continued... Agreement will be put into a written form by Anne Bruneel. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission accepted the proposal and the counter proposal from SSP Properties related to the acquisition/disposition of property in the South Bend Central Development Area. z. Commission approval requested for proposals from Doug Carpenter and Huma Appraisals for professional services in the Sample -Ewing Development Area. Mrs. Kolata stated that there are six houses and two vacant lots that need to be appraised. The properties are in the Southeast neighborhood. Doug Carpenter has proposed to do the appraisals for $1,650 and Huma Appraisals will do the appraisals for $1,800. The Staff recommends accepting both of the proposals. Upon a motion by Mr. Donoho, seconded by Mr. Blake and unanimously carried, the Commission accepted the proposal from Doug Carpenter in the amount of $1,650 and Huma Appraisals in the amount of $1,800 for professional services in the Sample - Ewing Development Area. -27- COMMISSION ACCEPTED THE PROPOSAL AND THE COUNTER PROPOSAL FROM SSP PROPERTIES RELATED TO THE ACQUISITION/DISPOSITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA COMMISSION ACCEPTED THE PROPOSAL FROM DOUG CARPENTER IN THE AMOUNT OF $1,650 AND HUMA APPRAISALS IN THE AMOUNT OF $1,800 FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA •y • South Bend Redevelopment Commission Regular Meeting - March 6, 1998 7. PROGRESS REPORTS Mrs. Kolata stated that the closing with the Multi - Employer Property Trust is scheduled to take place today at 3:30 p.m. She thanked Anne Bruneel for all her efforts to get this project closed. 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is scheduled for March 20, 1998 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before ADJOURNMENT the Redevelopment Commission, Mr. Donoho made a motion that the meeting be adjourned. Mr. Blake seconded the motion and the meeting was a ' t 11:35 a.m. G`- Robert W. Hunt, President Ann E. Kolata, Director -28-