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HomeMy WebLinkAboutRM 05-01-98I SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING May 1, 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. Eugenia S. Schwartz, Secretary Mr. Hardie Blake Members Absent: Mr. Philip J. Faccenda Legal Counsel: Ms. Anne E. Bruneel Redevelopment Staff: Mr. John Stark, Economic Development Specialist Ms. Vangelean Urbanski, Recording Secretary Mr. Owen Rock, Economic Development Specialist Ms. Amy Tweeten, Economic Development Specialist Ms. Hedy Robinson, Economic Development Specialist Business Assistance: Mr. Michael Beitzinger, Economic Development Specialist Ms. Nancy Van Scoyk, Economic Development Specialist Others: Mr. Jack Young, Stone Real Estate Group Mr. Tom Panzica, Panzica Construction Mr. Tony Sokol, Key Plastics, Inc. Mr. Randy Squadroni, Controller of Key Plastics, Inc. 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of April 17, 1998. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the Minutes of the Regular Meeting of April 17, 1998. rw COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF APRIL 17, 1998 I co South Bend Redevelopment Commission Regular Meeting - May 1, 1998 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted May 1, 1998, for approval. 212 CDBG COMMUNITY DEVELOPMENT Liability Insurance $437.00 Ameritech $55.97 Print Shop $10.95 N.I.P.S.C.O $53.08 Dainty Maid Bake Shop $34.95 Insty -Prints $18.75 Gene's Camera Store, Inc. $8.12 Business Systems $51.52 fc ► - I a 0,011 %; Stone Real Estate Group $1,800.00 South Bend Drafting Supply $15.75 Shamrock Net Design $6,870.00 St. Joseph County Treasurer $663.54 St. Joseph County Area Planning Commission $500.00 St. Joseph County Auditor $3.00 St. Joseph County Recording $18.00 414 SAMPLE -EWING FUND City of South Bend $50.00 The Troyer Group $2,737.50 Stone Real Estate Group $600.00 St. Joseph County Treasurer #1 $31.36 Cole Associates, Inc. $1,708.98 American Electric Power $38.79 N.I.P.S.C.O $37.22 Wiltfong Moving & Storage, Inc. $1,983.78 R.E. McCloskey & Associates, Inc. $5,000.00 EIS Environmental Engineers, Inc. $3,963.29 R.E. Pitts & Associates, Inc. $1,250.00 Meridian Title Corporation $395.00 Douglas L. Carpenter & Associates, Inc. $900.00 York Title & Escrow $50.00 South Bend Redevelopment Commission Regular Meeting - May 1, 1998 3. APPROVAL OF CLAIMS 420 SOUTH BEND CENTRAL DEVELOPMENT AREA GENERAL ACCOUNT N.I.P.S.C.O $521.06 Howard Park Hardware $12.98 The South Bend Supply Co., Inc. Rose Exterminator Co. CB/Robert Bradley Associates CB/Robert Bradley Associates Upon a motion by Mr. Donoho, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted May 1, 1998, and ordered the checks to be released. Ms. Schwartz abstained. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS a. Commission approval requested for proposal for appraisal services in the South Bend Central Development Area. This item was tabled at the last meeting in order to give all the appraisers an opportunity to submit a time schedule with their appraisals. Mr. Stark stated that an appraisal of the Leighton Plaza retail space is needed to determine its market rate. Two proposals were received. The first proposal received was from McCloskey and Associates in the amount of $3,000 to complete the work in 45 days. The second proposal received was from Baer Barkley and Company in the amount of $3,450 to complete the work in three weeks. The staff recommends accepting the proposal co $11.79 $42.00 $169.08 $454.89 COMMISSION APPROVED THE CLAIMS SUBMITTED MAY 1, 1998, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Regular Meeting - May 1, 1998 5. OLD BUSINESS (CONT.) a. continued.... from Baer Barkley and Company in the amount of $3,450, because it can complete the work in three weeks. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission accepted the proposal from Baer Barkley and Company in the amount of $3,450, subject to receiving a written guarantee of the appraisal services related to the Leighton Plaza retail space in the South Bend Central Development Area. John Stark asked permission to add one item to the agenda. There were no objections and item 6.i. was added to the agenda. a. Commission approval requested for Resolution No. 1600 approving an application for personal property tax deduction for property located in the Airport Economic Development Area. (Enterprise Centre Partners L.P.) The following staff report was provided to the Commission regarding the proposed tax abatement. Key Plastics, Inc. is a custom injection molder for the automotive industry. Within the plastics industry, injection molding is extremely competitive and as a result it is necessary to stay L -4- COMMISSION ACCEPTED THE PROPOSAL FROM BAER BARKLEY AND COMPANY IN THE AMOUNT OF $3,450, SUBJECT TO RECEIVING A WRITTEN GUARANTEE OF THE APPRAISAL SERVICES RELATIVE TO THE LEIGHTON PLAZA RETAIL SPACE IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA ITEM 6.I. WAS ADDED TO THE AGENDA 1p South Bend Redevelopment Commission Regular Meeting - May 1, 1998 6. NEW BUSINESS (CONT.) a. continued.... technologically current or lose market share. Their project calls for the purchase and installation of new manufacturing equipment. This equipment consists of three injection mold presses necessary to increase production. All of these improvements are important to remain competitive in the market place. Total estimated cost of the equipment is $2,200,000. Per the petition, it is estimated that this project will create thirty -nine (39) new permanent jobs within the first year, representing a new annual payroll of $910,000 and will maintain 93 existing permanent full time jobs with an annual payroll of $2,268,000. A review of the tax abatements previously granted finds that Key Plastics, Inc. 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 Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for personal property tax abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that Key Plastics, Inc. meets the qualifications for a five (5) year personal property tax abatement under Tangible C -5- South Bend Redevelopment Commission Regular Meeting - May 1, 1998 6. NEW BUSINESS (CONT.) a. continued.... Personal Property Tax Abatement. Using the estimated equipment cost of $2,200,000, the taxes to be generated over the five -year abatement period will total approximately $207,472. Taxes to be abated over the five -year period will total approximately $170,683. Taxes still to be paid over the five -year period will total approximately $36,789. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1600 approving an application for personal property tax deduction for property located in the Airport Economic Development Area. (Key Plastics, Inc.) b. Commission approval requested for Resolution No. 1601 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (Enterprise Centre Partners L.P.) The following staff report was provided to the Commission regarding the proposed tax abatement. Enterprise Centre Partners proposes to construct two new buildings of 80,000 sf each on 10 acres in the Ameriplex Industrial Park. Each building will contain modern efficient manufacturing and warehousing/distribution space. The new � -6- COMMISSION ADOPTED RESOLUTION NO. 1600 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (KEY PLASTICS, INC.) South Bend Redevelopment Commission Regular Meeting - May 1, 1998 6. NEW BUSINESS (CONT.) b. continued.... buildings are a continuation of the development of the Ameriplex Industrial Park. Enterprise Centre Partners L.P. has already erected a 100,000 sf building directly across from this site. That building was granted tax abatement in 1997. Through a voluntary annexation, the industrial park is now within the South Bend City limits and this tax abatement request must be considered by the Redevelopment Commission and the Common Council. The total cost for both buildings will be approximately $5.1 million. Enterprise Centre Partners L.P. estimates that this project will create as many as one hundred and thirty (13 0) new permanent jobs within the first year, representing a new annual payroll in excess of $2.6 million. A review of the tax abatements previously granted finds that Enterprise Centre Partners L.P. has not been granted any previous tax abatements; however, the partners of Enterprise Center Partners L.P. have been associated with several previous tax abatements. The associated entities are in compliance with the reporting requirements for 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 designation areas finds that the property is located in the Airport Economic Development Area, which is a c 7- I it C South Bend Redevelopment Commission Regular Meeting - May 1, 1998 6. NEW BUSINESS (CONT.) b. continued.... 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 Enterprise Centre Partners L.P. does not meet the qualifications for an abatement due to the inability of the developer to identify the end users of the buildings. However, the developer is requesting consideration of a special exception real property tax abatement for several of the same reasons as were considered for the tax abatement petitions from Beeler & Brown, LLC and Davey, LLC and Cobra Development. First, the developer has cited the enormous risk taken by obligating themselves to mortgages with no guarantee of a sale or lease revenues to meet these obligations. Second, the developer has cited the large costs associated with this type of development and their commitment to continue to develop these types of buildings in the future. Finally, the developer has cited the fact that there appears to be a need for this type of development within the South Bend city limits. The completed building, whether occupied or not, will add to the overall tax base and will contribute to the tax revenues. Considering these factors, the developer is respectfully requesting consideration of a special exception tax abatement, which is a South Bend Redevelopment Commission Regular Meeting - May 1, 1998 6. NEW BUSINESS (CONT.) b. continued.... the Council's Authority to enlarge Real Property Tax Abatement General Standards. Under the proposed guidelines established by the Community and Economic Development Committee of the Council, the buildings will be considered eligible for tax abatement under the requirements of the Industrial Development City Wide and are each 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 the abatement will be established. Final determination would be made by matching the end user to the requirements of the Tax Abatement Ordinance and possible examples include: If the end user is a manufacturing company, the Industrial Development City Wide Ordinance would be used and the term of the abatement for each building would remain at ten years since each building would surpass the minimum requirement of 30,000 sf of new construction. If the end user is a warehousing company, then the warehousing requirements under the Warehouse Development City Wide Ordinance would be used and each building would receive six years of abatement since the buildings surpass the minimum requirement of 50,000 sf. If any other type of use (e.g. office, service, retail, etc.) is identified, the buildings -9- South Bend Redevelopment Commission Regular Meeting - May 1, 1998 6. NEW BUSINESS (CONT.) b. continued.... would receive no abatement because the above identified uses are not eligible for abatement in this area. If there is a mixed use (manufacturing and warehousing or another type of mixture) the predominant use, (50 percent or more) of the building would determine eligibility for tax abatement and the above criteria would establish the term of the abatement. Two tax abatement schedules were provided. Using the estimated project cost of $5,100,000, the taxes to be generated over a six -year abatement period will total approximately $1,487,494. Taxes to be abated over the six -year period will total approximately $874,316. Taxes still to be paid will total approximately $613,178. Using the estimated project cost of $5,100,000, the taxes to be generated over a ten -year abatement period will total approximately $2,479,157. Taxes to be abated over the ten -year period will total approximately $1,227,183. Taxes still to be paid will total approximately $1,251,974. Upon a motion by Mr. Donoho, seconded by Mr. Blake and unanimously carried, the Commission adopted Resolution No. 1601 approving an application for real property tax deduction for property located in the Airport Economic Development Area. C; -10- COMMISSION ADOPTED RESOLUTION NO. 1601 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (ENTERPRISE CENTRE PARTNERS L.P.) South Bend Redevelopment Commission Regular Meeting - May 1, 1998 6. NEW BUSINESS (CONT.) b. continued.... (Enterprise Centre Partners L.P.) Ms. Schwartz abstained. c. Commission approval requested for Resolution No. 1602 approving an application for real property tax deduction for property located in the Sample -Ewing Development Area. (South Bend Redevelopment Commission) Mike Beitzinger asked permission to table item 6.c. until the next Commission meeting. There were no objections and item 6.c. was tabled. d. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 802 W. Calvert Street. (Sandra Morgan) Mr. Stark noted that the loan to Sandra Morgan is in the amount of $9,750 at 0% interest for 15 years with monthly payments of $54.17. The grant is in the amount of $8,998. Upon a motion by Mr. Donoho, seconded by Mr. Blake and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property located at 802 W. Calvert Street. (Sandra Morgan) -11- ITEM 6.C. WAS TABLED UNTIL THE NEXT MEETING COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 802 W. CALVERT STREET (SANDRA MORGAN) South Bend Redevelopment Commission Regular Meeting - May 1, 1998 6. NEW BUSINESS (CONT.) e. Commission approval requested for extension of facilities in the Blackthorn Corporate Park located in the Airport Economic Development Area. Mr. Stark explained that this Agreement is to extend a gas line to the Holy Cross development in the Blackthorn Corporate Park. The cost for the extension is $10,716. The City would pay NIPSCO for the extension of the gas line and then NIPSCO would reimburse the City as the gas is being used by Holy Cross and other potential users. Anne Brunel stated that the Agreement with Holy Cross was to help facilitate the extension of other utilities. Anne Brunel asked permission to table ITEM 6.E. WAS TABLED UNTIL THE NEXT MEETING item 6.e. until the next Commission meeting in order to determine if this was part of the Redevelopment Commission's contract with the developers. There were no objections and item 6.e. was tabled until the next meeting. E Commission approval requested for Resolution No. 1603 approving the transfer of real property to the City of South Bend, Indiana. Mr. Stark explained that this resolution would transfer property to the Board of Public Works. The Board of Public Works would subsequently transfer the property to South Bend Heritage Foundation for its Chapin Street Market G -12- South Bend Redevelopment Commission Regular Meeting - May 1, 1998 6. NEW BUSINESS (CONT.) f. continued.... Phase II project. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1603 approving the transfer of real property to the City of South Bend, Indiana. g. Staff report on Disposition of Property in the Sample -Ewing Development Area. John Stark stated that B & R Oil submitted a proposal to purchase and develop parcel five in the Studebaker Corridor. Parcel five is located at the corner of Sample and Main Streets. The proposal was received late in the week and has not yet been throughly reviewed by the staff. The staff did note that B & R Oil proposes to use the property for commercial use. In the past, the staff received inquires that were of a commercial nature relative to this parcel. The potential developers were informed that the parcel was zoned for industrial use. The Commission directed the staff to review B & R Oil's proposal throughly to make sure all the required paperwork is in order and to inform the previous commercial proposers that the Commission would be willing to consider -13- COMMISSION ADOPTED RESOLUTION NO. 1603 APPROVING THE TRANSFER OF REAL PROPERTY TO THE CITY OF SOUTH BEND, INDIANA THE COMMISSION DIRECTED THE STAFF TO REVIEW B & R OIL'S PROPOSAL THROUGHLY TO MAKE SURE ALL THE REQUIRED PAPERWORK IS IN ORDER AND TO INFORM THE PREVIOUS COMMERCIAL PROPOSERS THAT THE COMMISSION WOULD BE WILLING TO CONSIDER PARCEL FIVE FOR COMMERCIAL USE E N .1 South Bend Redevelopment Commission Regular Meeting - May 1, 1998 6. NEW BUSINESS (CONT.) g. continued.... parcel five for commercial use. h. Development Proposal Presentation by Panzica Development Corporation for The Crescent at Blackthorn. Tom Panzica presented a site plan to the Commission for parcels two, three, four, five and six in Blackthorn Corporate Park. He stated that Panzica Development Company represents a group of investors known as Crescent Michiana Properties. Mr. Panzica stated that South Bend lacks R & D space, which is commonly available in other markets. R & D space would attract corporate users that need a combination of Class A office and technical type space (storage, production, laboratories). Mr. Panzica proposes to purchase and develop parcel two, a total of 6.4 acres in the Blackthorn Corporate Park. Panzica would like the option to purchase parcel three, a total of 4.64 acres of land in Blackthorn Corporate Park, and Mr. Panzica proposes to purchase parcel three in two years. Mr. Panzica also requested the right of first refusal on parcels four, five and six, a total of 14.28 acres in Blackthorn Corporate Park. Mr. Panzica feels that the corporate users it has in mind, will be drawn to Blackthorn Corporate Park because of the type of -14- w South Bend Redevelopment Commission Regular Meeting - May 1, 1998 6. NEW BUSINESS (CONT.) h. continued.... infrastructure that has already been constructed in the Blackthorn Corporate Park. Mr. Panzica feels that Blackthorn Corporate Park is the best site for Class A office and technical type space for the corporate users that Panzica has in mind. Mr. Panzica stated that Panzica Construction Company would like to see Blackthorn Corporate Park become more accessible to both large and small users. Mr. Panzica stated that Panzica Construction Company could help make this possible by pre - planning for more development density and providing the ability for smaller users to be in the Blackthorn Corporate Park without necessarily occupying large parcels of land with small buildings on them. No action was required on this item. DEVELOPMENT PROPOSAL PRESENTATION BY PANZICA DEVELOPMENT COMPANY. NO ACTION REQUIRED i. Commission approval requested for Resolution No. 1604 approving the transfer of real property to the City of South Bend, Indiana. The resolution authorizes the transfer of properties in the Southeast Neighborhood to the Board of Public Works. The Board of Public Works would subsequently transfer the properties to American Home Dreams, a not - for - profit agency, for the construction of new housing. -15- s 1r t )^ South Bend Redevelopment Commission Regular Meeting - May 1, 1998 6. NEW BUSINESS (CONT.) i. continued.... Anne Brunel stated that she still needs to confirm the tax key numbers and to review the legal description throughly in order to determine if all the properties' tax key numbers match the properties addresses. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1604 approving the transfer of real property to the City of South Bend, Indiana, subject to clarification and confirmation of the tax key numbers and legal descriptions. 7. PROGRESS REPORTS There were no Progress Reports. 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is scheduled for May 15, 1998 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Ms. Schwartz made a motion that the meeting be adjourned. Mr. Donoho seconded the motion and t meeting was adjourned at 10. Robert W. Hunt, President COMMISSION ADOPTED RESOLUTION NO. 1604 APPROVING THE TRANSFER OF REAL PROPERTY TO THE CITY OF SOUTH BEND, INDIANA, SUBJECT TO CLARIFICATION AND CONFIRMATION OF THE TAX KEY NUMBERS AND LEGAL DESCRIPTIONS THERE WERE NO PROGRESS REPORTS ADJOURNMENT b Ann E. Kolata, Director -16-