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HomeMy WebLinkAboutRM 05-15-98L+ SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING May 15, 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 Mr. Philip J. Faccenda Mr. Hardie Blake Members Absent: Ms. Eugenia Schwartz, Secretary Legal Counsel: Ms. Anne E. Bruneel Redevelopment Staff: Ms. Amy Tweeten, Economic Development Specialist Mrs. Vangelean Urbanski, Recording Secretary Mr. Owen Rock, Economic Development Specialist Ms. Hedy Robinson, Economic Development Specialist Ms. Joanna Smith, Economic Development Specialist Mr. Andy Laurent, Intern Mr. Marco Mariani, Economic Development Specialist Business Assistance: Mr. Michael Beitzinger, Economic Development Specialist Ms. Nancy Van Scoyk, Economic Development Specialist Bureau of Housing: Mrs. Ernestine Ligon, Economic Development Specialist Media: Mr. Terry Bland, South Bend Tribune Others: Mr. Dick Muessel Mr. Tom Panzica, Panzica Construction Mr. Jack Young, Stone Real Estate Group Mr. Rick Milton, American Home Dreams, Inc. 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of May 1, 1998. 4- South Bend Redevelopment Commission Regular Meeting - May 15, 1998 2. APPROVAL OF MINUTES (CONT.) Upon a motion by Mr. Donoho, seconded by Mr. Blake and unanimously carried, the Commission approved the Minutes of the Regular Meeting of May 1, 1998. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF MAY 1, 1998 Redevelopment Commission Claims submitted May 15, 1998, for approval 212 CDBG COMMUNITY DEVELOPMENT 360 Communication $68.66 York Title & Escrow, Inc. $170.00 South Bend Tribune $36.72 American Electric Power $33.34 Tri- County News, Inc. $93.04 Indiana Notary Association $97.00 James E. Childs & Associates, Inc. $215125.00 South Bend Tribune $173.20 Ameritech $28.07 324 FUND Peirce & Associates $550.00 Young's Excavating, Inc. $68,731.55 Cole Associates Inc. $15,237.00 Cole Associates Inc. $4,450.00 East Race Printing & Graphics $9.72 South Bend Water Works $15.56 Baker & Daniels $899.12 414 SAMPLE -EWING FUND American Electric Power $287.35 Appraisal Group, Inc. $400.00 Emery Horvath $87.00 Russell Sosnoski $294.45 420 SOUTH BEND CENTRAL DEVELOPMENT AREA GENERAL ACCOUNT CB/Robert Bradley Associates $943.90 Lincoln Sewer Cleaning $275.00 -2- South Bend Redevelopment Commission Regular Meeting - May 15, 1998 3. APPROVAL OF CLAIMS (CONT.) 420 SOUTH BEND CENTRAL DEVELOPMENT AREA GENERAL ACCOUNT South Bend Water Works $150.79 American Electric Power $9.29 American Electric Power $326.86 619 BLACKTHORN Meadowbrook Golf Management, Inc. Mr. Donoho made a motion that the Claims be corrected to show that the Claims submitted May 15 for consideration are for 1998 not 1997. Upon a motion by Mr. Donoho, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted May 15, 1998, as amended, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS a. Commission approval requested for extension of facilities in the Blackthorn Corporate Park located in the Airport Economic Development Area. Amy Tweeten stated that this item was tabled at the May 1, 1998, meeting. This item was tabled at the last meeting because the contractual obligation of payment by the Commission to NIPSCO for extension of a gas line to the Holy Cross Health Center development needed to be determined. That determination has been -3- $6,450.00 COMMISSION APPROVED THE CLAIMS SUBMITTED MAY 15, 1998, AS AMENDED, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS IL South Bend Redevelopment Commission Regular Meeting - May 15, 1998 5. OLD BUSINESS (CONT.) a. continued.... made. The Commission would pay NIPSCO a not -to- exceed amount of $10,716 for extension of the gas line. NIPSCO would subsequently reimburse the Commission as the gas is being used by Holy Cross and other potential users. Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission approved the extension of facilities in the Blackthorn Corporate Park located in the Airport Economic Development Area. b. Commission approval requested for Resolution No. 1602 approving an application for real property tax deduction for property located in the Sample -Ewing Development Area. (Redevelopment Commission, City of South Bend Board of Public Works and American Home Dreams, Inc.) Anne Bruneel stated that she received a letter from Jon Hunt, Director of Community and Economic Development, disclosing for the public record that he serves on the Board of Directors of American Home Dreams, Inc. The following staff report was provided to the Commission regarding the proposed tax abatement. American Home Dreams, Inc. will construct more than 20 homes throughout -4- COMMISSION APPROVED THE EXTENSION OF FACILITIES IN THE BLACKTHORN CORPORATE PARK LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - May 15, 1998 5. OLD BUSINESS (CONT.) b. continued.... the site. The site is bounded by Pennsylvania, Rush, Marietta and Wenger Streets. The homes will be not less than 1,500 sf each, with up to 3 bedrooms, 2'/2 baths, a full finished basement and a one or two car garage. The sale price of each home will be around $70,000, and the homes will be available to low and moderate income first time home buyers. Qualified buyers will also be eligible for a mortgage subsidy of between $15,000 and $17,000 through the St. Joseph County Housing Assistance Office. The total cost of the homes is expected to exceed $1.4 million (excluding land). A review of tax abatements previously granted finds that the Redevelopment Commission has been a co- petitioner with several other entities which have been granted tax abatement. The other entities are responsible for the compliance reporting requirements for the previous abatements. American Home Dreams, Inc. has been granted two previous tax abatements. The first, a five year residential real property abatement in May 1997, and the second, a five year residential real property abatement in August 1997. American Home Dreams, Inc. is in compliance with the reporting requirements for the previous abatements. The building commissioner has reviewed -5- South Bend Redevelopment Commission Regular Meeting - May 15, 1998 5. OLD BUSINESS (CONT.) b. continued.... the petition and finds the properties to be properly zoned for the proposed project; however, a rezoning of the properties will be pursued to change the rezoning from B residential, which allows multi - family, to A residential which is single family only. A review of the South Bend Redevelopment designation areas finds that the properties are located in the Sample -Ewing 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 American Home Dreams, Inc. meets the qualifications for a five year residential tax abatement under Single Family Real Property Abatement. Using the estimated project cost of $70,000 for each home over the five -year period, the taxes generated will total approximately $9,209.96. Taxes abated for each home over the five -year period will be approximately $7,130.29. Taxes still paid with the abatement for each home over the five -year period will be approximately $2,079.67 Upon a motion by Mr. Blake, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1602 approving an application for real property I an South Bend Redevelopment Commission Regular Meeting - May 15, 1998 5. OLD BUSINESS (CONT.) b. continued.... tax deduction for property located in the Sample -Ewing Development Area. (Redevelopment Commission, City of South Bend Board of Public Works and American Home Dreams, Inc.) 6. NEW BUSINESS a. Staff report on disposition of property in the Airport Economic Development Area. Two staff reports were received. Amy Tweeten stated that the first staff report received and provided to the Commission was for a purchase offer from Dennis Bamber for purchase and development of Lot 10 in the US 31 Industrial Park in the Airport Economic Development Area. Mr. Bamber proposes to construct a 15,000 sf warehouse, which will be designed to allow for expansion up to 40,000 sf as future needs arise. The warehouse will be used to house excess inventory for the Woodwind and Brasswind currently under construction on Technology Drive. Any excess space in the building will be leased out. Upon the purchase of the property, Dennis Bamber intends to erect a highly visible billboard facing the US 31 Bypass. -7- COMMISSION ADOPTED RESOLUTION NO. 1602 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE SAMPLE -EWING DEVELOPMENT AREA. (REDEVELOPMENT COMMISSION, CITY OF SOUTH BEND BOARD OF PUBLIC WORKS AND AMERICAN HOME DREAMS, INC.) South Bend Redevelopment Commission Regular Meeting - May 15, 1998 6. NEW BUSINESS (CONT.) a. continued.... The purchase price is in the amount of $100,000, which is $40,000 per acre. The required faithful performance guaranty of 10 percent of the purchase price ($10,000) has been submitted by Dennis Bamber. Dennis Bamber would begin construction within one year and complete his building within two years of purchase as per the bid specifications. Dennis Bamber anticipates start of construction by June 1, 1999, and completion by May 31, 2000. The staff recommends accepting the proposal and entering into a Contract for Sale of Land with the understanding that the extension of Ameritech Drive to Lot 10 would not be completed until 1999. Upon a motion by Mr. Faccenda, seconded COMMISSION APPROVED THE STAFF REPORT ON by Mr. Blake and unanimously carried, the DISPOSITION OF PROPERTY IN THE AIRPORT Commission approved the staff report on ECONOMIC DEVELOPMENT AREA disposition of property in the Airport Economic Development Area. The second staff report received and provided to the Commission was related to the purchase offer from Panzica Development Corporation. Panzica Development Corporation intends to purchase and develop Parcels 2 and 3 in the Blackthorn Corporate Park, which are part of Lot 4 and are identified on a proposed minor subdivision presented with the purchase offer. Panzica Development Corporation proposes to -8- South Bend Redevelopment Commission Regular Meeting - May 15, 1998 6. NEW BUSINESS (CONT.) a. continued.... purchase Parcel 2 consisting of 6.2 acres for $35,000 an acre or a total of $217,000. Panzica Development Corporation also wants to assume the right and obligation to purchase, within 24 months of occupancy of Parcel 2, the adjacent 4.64 acre site identified as Parcel 3 at a price of $162,400 or $35,000 an acre. Panzica Development Corporation has submitted the required faithful performance guaranty of 10 percent of the purchase price ($37,940). Panzica Development Corporation anticipates the start of construction in early June and to have the tenant occupy the building by the end of 1998. Panzica Development Corporation proposes to construct a 60,800 sf facility for a specific client. The structure will be a mix of office and on -site technical space, which is known as R & D Space in larger markets. The design of the building will consist of a modular structural steel frame, prestressed colored concrete cladding and areas of glass for a modern office -like appearance. Panzica Development Corporation proposes to purchase Parcel 2 and to perform a phased take -down of Parcel 3 within 24 months of Parcel 2 occupancy. Panzica Development Corporation also wants a first right of refusal on Parcels 4 and 5. If Panzica Development Corporation is unsuccessful with their current client, V2 CW South Bend Redevelopment Commission Regular Meeting - May 15, 1998 6. NEW BUSINESS (CONT.) a. continued.... Panzica Development Corporation will still ask the Redevelopment Commission for a written first right of refusal on Parcels 2, 3, 4 and 5. The staff recommends accepting the proposal. Tom Panzica of Panzica Development Corporation presented a site plan to the Commission. It shows seven parcels as part of the minor subdivision. Mr. Hunt asked Mr. Panzica if it is correct that Panzica Development Corporation intends to purchase Lot 1 a as identified on his site plan and proceed with construction on that Lot. Mr. Panzica stated that is correct. Mr. Hunt asked Mr. Panzica if it is correct that Panzica Development Corporation intends to take down Lot 1 b, as identified on his site plan, within two years. Mr. Panzica stated that is correct. Mr. Hunt asked Mr. Panzica if it is correct that Panzica Development Corporation requests first right of refusal on Lots 2a, 2b, 2c, 3a and 3b. Mr. Panzica stated that is correct. Mr. Hunt commented that the Commission was concerned about setting a precedent for giving a right of first refusal on properties in the Blackthorn Corporate Park. He -10- South Bend Redevelopment Commission Regular Meeting - May 15, 1998 6. NEW BUSINESS (CONT.) a. continued.... stated that the Commission has approved other requests in the Blackthorn Corporate Park relative to the delayed take -down of Parcel 3. Mr. Hunt commented that the Commission felt that it would be setting a very difficult precedent by granting first right of refusal on any of its lots. Mr. Panzica asked if Panzica Development Corporation could be notified of other inquires concerning Parcels 4 and 5 so that Panzica Development Corporation could protect its interests in those parcels, which is important to its project. Mr. Faccenda stated that the Commission would be willing to inform Panzica Development Corporation of any inquires about Parcels 4 and 5. Mr. Hunt stated that the Commission would direct the staff to inform Panzica Development Corporation of inquires about Parcels 4 and 5. Mr. Hunt stated that the Commission has some design concerns regarding the service roads and the building's outside walls. They want to make sure the building looks attractive on all sides. Mr. Hunt asked that Panzica work closely with the staff on design. He'd also like to have them look at the design of the south side of the building on 1 a and work with the staff to assure that -11- South Bend Redevelopment Commission Regular Meeting - May 15, 1998 6. NEW BUSINESS (CONT.) a. continued.... it doesn't detract from people developing Parcel 3a. Obviously, if you were the next developer on that site you wouldn't want to be looking at a plain bare wall, which would be the south evaluation of this building. Mr. Donoho stated that he would like to see a heavy design in the panels —not just plain walls. Mr. Panzica stated that he can assure the Commission that not all walls can be heavily fenestrated. He also assured the Commission a very high quality of design. Mr. Hunt stated that the Commission would also like to see some type of nicely designed landscaping that would be between Lots la and 3b. Mr. Panzica stated that Panzica Development Corporation has been and will continue to look into using very generous landscaping as buffers to make the walls that would separate the buildings on Lots la and 3a look as attractive as possible. Mr. Hunt stated that those are concerns we want you to work out with the staff. We don't want you to diminsh the value of the property. Mr. Donoho asked how they plan to handle the service drives of Lots 1 a and 1 b before the rest of the site is developed. Mr. Panzica stated that there would be a service drive behind Lots 1 a and 1 b to service those two buildings. Mr. Panzica stated that if Lots 2c and 2b were to not be developed by Panzica -12- South Bend Redevelopment Commission Regular Meeting - May 15, 1998 6. NEW BUSINESS (CONT.) a. continued.... Development Corporation, that whoever the developer would be should develop Panzica Development Corporation's Master Plan regarding the service road and continue the plan. They want to avoid a road between Parcels 3 and 4 if at all possible. Mr. Panzica stated that initially we would have the service drive go along the south side of Lot 2 to their service area. The next portion of the service drive wouldn't be completed until additional work on Lot 2 or development of Lot 3. Mr. Hunt stated that we want to avoid heavy truck traffic on Crescent Circle. Mr. Faccenda stated that the Commission would be willing to adopt the Master Plan as the Commission's and any other user of Parcels 4 and 5 would have to conform to the Master Plan regarding the service road. Mr. Panzica explained that the plans for the service drive is schematic and may change somewhat as the topography is identified. He agreed to work with the staff on the exact location of the service drive. Mr. Blake asked if Mr. Panzica had any concern over the zoning. Mr. Panzica stated that the Covenants of Blackthorn are more restrictive than the zoning. As an updating of the Blackthorn Covenants is considered, the Covenants may need further refinement so as to not limit reasonable use but still not permit undesirable uses that -13- South Bend Redevelopment Commission Regular Meeting - May 15, 1998 6. NEW BUSINESS (CONT.) a. continued.... would require a lot of truck traffic. Mr. Hunt stated that zoning is something Panzica Development Corporation needs to work with the staff on. Owen Rock stated that the staff intends to either upgrade the current Business Park zoning category or develop a new one. Mr. Panzica stated that they are representing to their tenant that they are an acceptable use and Panzica's tenant will probably want some acknowledgement of that. Mr. Faccenda stated that the Commission's concern is not with the initial user but with the subsequent uses of the property. Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission approved the second staff report on disposition of property in the Airport Economic Development Area, subject to: (1) Accepting the proposal for purchase of Parcel 2 consisting of 6.2 acres for a purchase price of $217,000. (2) Panzica Development Corporation assuming the right and obligation to purchase, within 24 months of occupancy of Parcel 2, the adjacent Parcel 3 consisting of 4.64 acres for a purchase price of $162,400. (3) Rejecting the request for first right of refusal on Parcels 4 and 5. (4) Directing the staff to inform Panzica -14- COMMISSION APPROVED THE SECOND STAFF REPORT ON DISPOSITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA, SUBJECT TO: (1) ACCEPTING THE PROPOSAL FOR PURCHASE OF PARCEL 2 CONSISTING OF 6.2 ACRES FOR A PURCHASE PRICE OF $217,000. (2) PANZICA DEVELOPMENT CORPORATION ASSUMING THE RIGHT AND OBLIGATION TO PURCHASE, WITHIN 24 MONTHS OF OCCUPANCY OF PARCEL 2, THE ADJACENT PARCEL 3 CONSISTING OF 4.64 ACRES FOR A PURCHASE PRICE OF $162,400. (3) REJECTING THE REQUEST FOR FIRST RIGHT OF REFUSAL ON PARCELS 4 AND 5.(4) DIRECTING THE STAFF TO INFORM PANZICA DEVELOPMENT CORPORATION OF OTHER INQUIRES OF PARCELS 4 AND 5. (5) HAVING THE COMMISSION ADOPT PANZICA DEVELOPMENT CORPORATION'S MASTER PLAN RELATIVE TO THE SERVICE ROAD South Bend Redevelopment Commission Regular Meeting - May 15, 1998 6. NEW BUSINESS (CONT.) a. continued.... Development Corporation of other inquires of Parcels 4 and 5. (5) Having the Commission adopt Panzica Development Corporation's Master Plan relative to the service road. b. Commission approval requested for proposal from The Polis Center for professional services. Amy Tweeten stated that Joanna Smith, an Economic Development Specialist has been working with The Polis Center to submit a proposal for Access 97 database development and training services for an amount not -to- exceed $13,470. The staff recommends accepting the proposal. Upon a motion by Mr. Faccenda, seconded COMMISSION ACCEPTED THE PROPOSAL FROM by Mr. Donoho and unanimously carried, THE POLIS CENTER FOR PROFESSIONAL SERVICES the Commission accepted the proposal from FOR A FEE NOT -TO- EXCEED $13,470 The Polis Center for professional services for a fee not -to- exceed $13,470. c. Commission appointment to the Architectural and Site Review Committee of the Owner's Association in Blackthorn. Amy Tweeten stated that the staff recommends that the Commission appoint Owen Rock, an Economic Development Specialist, to the Blackthorn Architectural and Site Review Committee to replace -15- Awpk South Bend Redevelopment Commission Regular Meeting - May 15, 1998 6. NEW BUSINESS (CONT.) c. continued.... James Riggs, who voluntarily resigned from the Division of Redevelopment. Upon a motion by Mr. Donoho, seconded by Mr. Blake and unanimously carried, the Commission appointed Owen Rock, an Economic Development Specialist, to the Blackthorn Architectural and Site Review Committee. d. Commission approval requested for proposals for appraisal services in the South Bend Central Development Area. Amy Tweeten stated that several proposals were received from appraisers to conduct appraisals on existing retail space. Ms. Tweeten stated that she needs to throughly review the proposals. She requested that the Commission table item 6.d. There were no objections and item 6.d. was tabled. e. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 1615 E. Dayton. ( Regene Wray) Amy Tweeten stated that the loan to Regene Wray is in the amount of $2,950 at 0% interest for 5 years with monthly payments of $49.17. The grant is in the amount of $2,763.75. -16- COMMISSION APPOINTED OWEN ROCK, AN ECONOMIC DEVELOPMENT SPECIALIST, TO THE BLACKTHORN ARCHITECTURAL AND SITE REVIEW COMMITTEE ITEM 6.D. WAS TABLED South Bend Redevelopment Commission Regular Meeting - May 15, 1998 6. NEW BUSINESS (CONT.) e. continued.... Upon a motion by Mr. Faccenda, 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 1615 E. Dayton. (Regene Wray) L Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 802 S. 29th St. (Christine Heminger) Amy Tweeten stated that the loan to Christine Heminger is in the amount of ce $6,950 at 0 % interest for 20 years with monthly payments of $28.96. The grant is in the amount of $6,748.50. 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 S. 29th St. (Christine Heminger) g. Commission approval requested for use of the Wayne Street Parking Garage for a Rooftop Rendezvous on July 17, 1998, and September 11, 1998. Amy Tweeten stated that the AIDS Ministries Organization requests the use of the Wayne Street Parking Garage for a Rooftop Rendezvous on July 17, 1998, and September 11, 1998. -17- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 1615 E. DAYTON (REGENE WRAY) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 802 S. 29TH ST. (CHRISTINE HEMINGER) "s South Bend Redevelopment Commission Regular Meeting - May 15, 1998 6. NEW BUSINESS (CONT.) g. continued.... Ms. Tweeten stated that the Rooftop Rendezvous is an event that Alive With Pride organized and the event was very successful, but Alive With Pride is no longer in action. AIDS Ministries would like to take over the activities because it was a good event for downtown South Bend. The staff recommends approving the use of the Wayne Street Parking Garage, subject to AIDS Ministries providing a Certificate of Insurance naming the Redevelopment Commission and the City of South Bend as additional insureds. Mr. Hunt recommended that the Commission approve the use of the Wayne Street Parking Garage on July 17, 1998, but not on September 11, 1998. He commented that the Commission would be willing to consider the use of the Wayne Street Parking on September 11, 1998, subject to the out -come of the July 17, 1998, event. Upon a motion by Mr. Donoho, seconded by Mr. Blake and unanimously carried, the Commission approved the use of the Wayne Street Parking Garage for the Rooftop Rendezvous on July 17, 1998, subject to AIDS Ministries providing the Commission with a Certificate of Insurance naming the Redevelopment Commission and the City of South Bend as additional insureds. -18- COMMISSION APPROVED THE USE OF THE WAYNE STREET PARKING GARAGE FOR THE ROOFTOP RENDEZVOUS ON JULY 17, 1998, SUBJECT TO AIDS MINISTRIES PROVIDING THE COMMISSION WITH A CERTIFICATE OF INSURANCE NAMING THE REDEVELOPMENT COMMISSION AND THE CITY OF SOUTH BEND AS ADDITIONAL INSUREDS South Bend Redevelopment Commission Regular Meeting - May 15, 1998 7. PROGRESS REPORTS Amy Tweeten reported that the Leighton Plaza project is well underway and the Dreisbach building has been torn down. 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is scheduled for June 5, 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. Mr. B ondthe motion and the n*t1nj4ps adjp ed at 10:30 a.m. Robert W. Hunt, President PROGRESS REPORTS ADJOURNMENT Ann E. Kolata, Director -19-