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HomeMy WebLinkAboutRM 06-05-98SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING June 5, 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. Philip J. Faccenda Mr. Hardie Blake Legal Counsel: Ms. Anne E. Bruneel Redevelopment Staff: Mrs. Ann E. Kolata, Director Ms. Vangelean Urbanski, Recording Secretary Mr. Owen Rock, Economic Development Specialist Ms. Amy Tweeten, Economic Development Specialist Ms. Hedy Robinson, Economic Development Specialist Ms. Joanna Smith, Economic Development Specialist Business Assistance: Mr. Michael Beitzinger, Economic Development Specialist Ms. Nancy Van Scoyk, Economic Development Specialist Bureau of Housing: Ms. Mary Beth Thompson Others: Mr. Philip Panzica, Panzica Development Corporation Mr. Thomas Panzica, Panzica Development Corporation Mr. William Panzica, Panzica Development Corporation Mr. Herbert Wilson, Associates Bancorp, Inc. Mr. Scott Mabry, Associates Information Services Mr. Robert Wozney, REW, LLC Mr. Randy Sowers, Syscon International, Inc. Mr. Eric Johnson, SGW Realty, LLC Mr. Hunt noted that the Executive Session will continue immediately following adjournment of the Regular Meeting. -1- South Bend Redevelopment Commission Regular Meeting - June 5, 1998 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of May 15, 1998. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved the Minutes of the Regular Meeting of May 15, 1998. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF MAY 15, 1998 Redevelopment Commission Claims submitted June 5, 1998 for approval. 212 CDBG COMMUNITY DEVELOPMENT Business System $4.92 Peirce & Associates $921.00 Print Shop $17.86 Holiday Inn $363.00 Business Districts, Inc. $240.00 APA $70.00 FedEx $51.75 Peirce & Associates 1,000.00 John Stark $45.00 Petty Cash $263.60 Liability Insurance $438.00 James E. Childs & Associates $644.89 Northern Indiana Public Service Company $26.85 Engineering Department $142.20 General Fund $225.74 324 FUND Stone Real Estate Group $100.00 Traffic Engineering Consultants, P.C. $2,835.00 Indiana Michigan Power Co. $1,456.40 Underground Services $6,270.00 Insty- Prints $228.75 Owners Association at Blackthorn, Inc. $1,657.60 N.I.P.S.C.O. $10,716.00 Cole Associates Inc. $4,450.00 -2- South Bend Redevelopment Commission Regular Meeting - June 5, 1998 3. APPROVAL OF CLAIMS (CONT.) 324 FUND Koontz - Wagner Electric, Company Stone Real Estate Group Peirce & Associates Aquatic Weed Control Inc. J.F. New & Associates 414 SAMPLE -EWING FUND Mark Campbell A.K.A. Marc Campbell St. Joseph County Cole Associates Inc. Cole Associates, Inc. American Electric Power Northern Indiana Public Service Company Grauvogel & Associates Warner & Sons, Inc. 420 SBCDA GENERAL ACCOUNT Ideal Consolidated, Inc. Northern Indiana Public Service Company Northern Indiana Public Service Company American Electric Company Superior Waste system Rose Exterminators South Bend Supply CB/Robert Bradley Associates CB /Robert Bradley Associates CB/Robert Bradley Associates 619 BLACKTHORN Meadowbrook Golf Group, Inc. Upon a motion by Mr. Blake, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Claims submitted June 5, 1998, and ordered the checks to be released. Ms. Schwartz and Mr. Donoho abstained. -3- $307.57 $120.00 $1,650.00 $3,855.00 $400.00 $16,000.00 $24,500.00 $1,530.00 $1,708.98 $14.28 $19.20 $1,240.00 $28,706.63 $481.00 $370.83 $12.14 $52.16 $67.75 42.00 $28.95 $799.47 $115.94 $278.86 $6,450.00 COMMISSION APPROVED THE CLAIMS SUBMITTED JUNE 5, 1998, AND ORDERED THE CHECKS TO BE RELEASED South Bend Redevelopment Commission Regular Meeting - June 5, 1998 4. COMMUNICATIONS There were no Communications. THERE WERE NO COMMUNICATIONS 5. OLD BUSINESS There was no Old Business. THERE WAS NO OLD BUSINESS Mrs. Kolata asked permission to take the agenda out of order and move item 6.e. to the front of New Business. 6. NEW BUSINESS e. Commission approval requested for Resolution No. 1609 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (South Bend Redevelopment Department for the benefit of Crescent Michiana Properties, LLC) Ms. Schwartz abstained from the discussion and vote of this item due to a conflict of interest with regard to the alternate user. Mike Beitzinger stated that the project does not meet the requirements of the tax abatement ordinance; however, Crescent Michiana Properties, LLC is seeking consideration for a ten -year tax abatement under the provision that does allow consideration for projects that don't meet the requirements of the ordinance. -4- South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) e. continued.... Mr. Beitzinger also stated that the Commission would have to authorize the Director to sign the petition. The following staff report was presented to the Commission regarding the proposed tax abatement. Crescent Michiana Properties, LLC proposes to construct a 60,000 sf building to be used for back office and support services at the Northwest corner of Nimtz Parkway and Crescent Circle in the Blackthorn Corporate Park. The building will be steel frame with exposed aggregate limestone precast concrete panels and will feature blue tinted glass with clear anodized aluminum frames. All materials and landscaping will be in accordance with Blackthorn Corporate Park covenants and development requirements. The total estimated cost of the new building is $2.8 million. The Associates AIS Output Management Services Operation will be the tenant of the building. Their operation consists of computer data processing, and this facility will primarily engage in processing all of Associates' in -house reports as well as the printing, sorting and mailing of over nine million credit card statements per month. -5- South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) e. continued.... Per the petition, Associates is not expecting to create any new jobs within the first year; however, Associates estimates that the project will result in the creation of forty (40) new permanent jobs within the first five years and these new positions represent a new annual payroll of $1,380,000. The project will also maintain ninety- two (92) existing permanent full -time jobs and three (3) existing permanent part-time jobs with an annual payroll of $2,242,000. A review of the tax abatements previously granted finds that Crescent Michiana Properties, LLC has not been granted any previous tax abatements; however, the members of Crescent Michiana Properties, LLC have been involved in several previous projects that have been granted tax abatement. The previous projects /abatements are as follows: A ten -year abatement was granted to IAP Properties in November of 1982. A six -year abatement was granted to River Glen South Associates in December of 1987. A three -year abatement was granted to Tech Centre Partnership in October 1990 and a six - year abatement was granted to Western Avenue Partnership in November of 1995. The first three abatements have expired and the Western Avenue Partnership project is in compliance with the reporting requirements for that ffol South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) e. continued.... abatement. The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. A review of the designated 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 Crescent Michiana Properties, LLC does not meet the qualifications for an abatement due to the location and use of the proposed building. The use of the proposed building will be for processing data, printing, sorting and mailing of credit card statements. This particular development is not within one of the areas designated for office tax abatement. With the knowledge that the project does not meet the specific requirements for abatement, Crescent Michiana Properties, LLC is respectfully requesting consideration of a special exception real property tax abatement for several reasons. First, the developer has cited the long standing of the Associates company in South Bend with over 80 years of some form of -7- South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) e. continued.... corporate service and management function within the community. Although Associates moved its headquarters to Dallas, Texas, in the early 1970s resulting in the loss of approximately 300 jobs, today the company employs at least 315 people in South Bend qualifying it as the 25th largest non - public employer in the City. Second, Crescent Michiana Properties, LLC has stated that it is not trying to simply construct an office building, but rather it is creating a whole new class of business space. Their goal is to develop over 250,000 sf of quality research and development office flex space in Blackthorn, which would represent more than $15 million worth of private investment. Third, according to Crescent Michiana Properties, LLC, there appears to be a need for additional incentive for business development within the Blackthorn Corporate Park and having a world class financial institution such as the Associates will be the catalyst for future development within the surrounding area. Considering the above factors, Crescent Michiana Properties, LLC is respectfully requesting consideration of a special exception ten (10) year real property tax abatement. This request would be considered under the Council's Authority to Enlarge Real Property Tax Abatement General Standards. in South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) e. continued.... Using the estimated project cost of $2,800,000, the taxes generated over the ten -year period will be approximately $1,361,106. Taxes abated over the ten -year period will be $673,747. Taxes still to be paid over the ten -year period will be approximately $687,358. Mrs. Kolata stated that she would have normally signed the petition on behalf of the Redevelopment Commission and stated that her signature would then be ratified at the next Commission meeting. She stated that she did not sign the tax abatement petition in this case because it is a special exception petition and her signing the petition might have indicated the Commission's action on the special exception petition. In the past, she has routinely signed the petition for tax abatement for a project which clearly meets the tax abatement guidelines. Mrs. Kolata stated that the Redevelopment Commission is required to sign the petition because it is still the property owner. This is the first tax abatement for office /support space in the Blackthorn Corporate Park. A tax abatement previously has been approved for a hotel site that would be located in the Blackthorn Corporate Park. The tax abatement granted for the hotel is considered to be an incentive for the 0 El South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) e. continued.... hotel site. Mrs. Kolata stated that this is a hybrid use in the building, but it is an important use. The support services this project would provide to Associates are important. The scale of the project and the fact that it is a single, corporate user are reasons why the staff is willing to recommend tax abatement. The staff recommends adopting Resolution No. 1609. Mrs. Kolata also requested that Crescent Michiana Properties, LLC continue to work with the staff on the final design of the project. Upon a motion by Mr. Blake, seconded by Mr. Faccenda and unanimously carried, the Commission adopted Resolution No. 1609 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (South Bend Redevelopment Department for the benefit of Crescent Michiana Properties, LLC). The Commission requested that Crescent Michiana Properties, LLC work with the staff on the final design of the project and come back to the Commission for approval of the final design of the project. -10- COMMISSION ADOPTED RESOLUTION NO. 1609 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (SOUTH BEND REDEVELOPMENT DEPARTMENT FOR THE BENEFIT OF CRESCENT MICHIANA PROPERTIES, LLC). THE COMMISSION REQUESTED THAT CRESCENT MICHIANA PROPERTIES, LLC WORK WITH THE STAFF ON THE FINAL DESIGN OF THE PROJECT AND COME BACK TO THE COMMISSION FOR APPROVAL OF THE FINAL DESIGN OF THE PROJECT South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) a. Commission approval requested for Resolution No. 1605 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (REW, LLC (d.b.a. Corporate Services, Inc.) Nancy Van Scoyk stated that after she had submitted the staff report for the Commission's review and consideration, she received a fax from M/W, LLC (d.b.a. Corporate Services, Inc.) stating that its name had been changed to REW, LLC (d.b.a. Corporate Services, Inc.). She also stated that a copy of this amendment was presented to the Commission for its review. The following staff report was presented to the Commission regarding the proposed tax abatement. REW, LLC (d.b.a. Corporate Services, Inc.) is in the business of creating and printing mailing lists and labels; laser printing of letters, certificates and surveys; custom packaging and assembly; warehousing and distribution. Their project calls for the construction of a 52,500 sf building to expand the business. The new building will allow the company to continue to grow in both sales and employee base. The efficiencies gained by the new building will enable the company to become more competitive in a highly -11- South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) a. continued.... competitive marketplace. The total cost of the new building is estimated at $1,000,000. Per the petition, it is estimated that this project will create between ten and fifteen (10 -15) new, permanent jobs within the first year, representing a new annual payroll of over $300,000 and will maintain 57 existing permanent full -time jobs and six existing permanent part-time jobs, representing an annual payroll of $1,200,000. A review of the tax abatements previously granted, finds that REW, LLC has been granted three previous tax abatements and they are as follows: (1) A six -year real property tax abatement was granted in February 1994. (2) A six -year real property tax abatement was granted in May 1995. (3) A ten -year real property tax abatement was granted in May 1997. REW, LLC is 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 designated South Bend Redevelopment areas finds that the property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area; -12- South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) a. continued.... 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 REW, LLC meets the qualifications for a ten (10) year real property tax abatement under Industrial Development City Wide. Using the estimated project cost of $1,000,000, the taxes generated over the ten -year period will be approximately $486,109. Taxes abated over the ten -year period will be approximately $240,624. Taxes still paid over the ten -year period will be approximately $245,485. Mrs. Kolata asked Robert Womey of REW, LLC if his proposed project is for a new building or an expansion of his existing building. Mr. Womey responded that the proposed project is for a new building. Mrs. Kolata asked Mr. Womey what would be the square footage of all his buildings upon completion. Mr. Womey responded that the square footage of the buildings would be 165,000 sf. Mrs. Kolata noted that this has been a continually growing business in the last four years and congratulated him on his success. -13- South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) a. continued.... Ms. Schwartz noted for the record that in the past her firm has represented Mr. Wozney. Ms. Schwartz's firm is not presently representing him, so she will be voting on this agenda item. Upon a motion by Mr. Blake, seconded by Ms. Schwartz and unanimously carried, the Commission adopted Resolution No. 1605 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (REW, LLC (d.b.a. Corporate Services, Inc.) b. Commission approval requested for Resolution No. 1606 approving an application for personal property tax deduction for property located in the Sample -Ewing Development Area. ( Syscon International, Inc.) The following staff report was presented to the Commission regarding the proposed tax abatement. Syscon International, Inc. is in the business of designing, manufacturing and selling instrumentation and tooling for the electronics, plastics, iron and steel industries. The project involves the purchase of equipment to be used in creating special tooling products for manufacturers' use in building of circuit boards in the hybrid micro - electronics -14- COMMISSION ADOPTED RESOLUTION NO. 1605 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (REW, LLC (D.B.A. CORPORATE SERVICES, INC.) South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) b. continued.... industry. The equipment will be used in creating stainless steel stencils used by customers to apply solder paste onto circuit board patterns. Additionally, blasting equipment will be purchased to recycle aluminum frames for mounting the stencils. The total estimated cost of the new equipment is $328,300. Per the petition, it is estimated that this project will create eighteen (18) new, permanent jobs within the first year, representing a new annual payroll of $374,000 and will maintain seventy -one (7 1) existing permanent full -time jobs with an annual payroll of $2,240,000. A review of the tax abatements previously granted finds that Syscon International, 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 designated South Bend Redevelopment areas finds that the property is located in the Sample -Ewing 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 Syscon International, Inc. meets the qualifications for a five (5) year personal property tax abatement under -15- South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) b. continued.... Tangible Personal Property Tax Abatement. Using the estimated equipment cost of $328,300, the taxes generated over the five -year period will be approximately $31,087. Taxes abated over the five - year period will be approximately $25,575. Taxes still paid over the five - year period will be approximately $5,512. Randy Sowers, Controller of Syscon International, Inc., stated that Syscon International, Inc. felt that purchasing the new equipment would allow Syscon International, Inc. to bring new technology into its marketplace and to expand its business sufficiently for a company of its size. Upon a motion by Mr. Donoho, COMMISSION ADOPTED RESOLUTION NO. 1606 seconded by Mr. Blake and APPROVING AN APPLICATION FOR PERSONAL unanimously carried, the Commission PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE SAMPLE -EWING DEVELOPMENT adopted Resolution No. 1606 approving AREA (SYSCON INTERNATIONAL, INC.) an application for personal property tax deduction for property located in the Sample -Ewing Development Area. ( Syscon International, Inc.) c. Commission approval requested for Resolution No. 1607 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (SGW Realty, LLC) -16- South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) c. continued.... The following staff report was presented to the Commission regarding the proposed tax abatement. A drawing of the proposed project was presented to the Commission. SGW Realty, LLC is in the business of manufacturing gears and machined components to customer specifications. The proposed project calls for construction of an office /manufacturing structure of approximately 80,000 to 100,000 square feet. There will be room for an equal size expansion in the future. The building will be a modular steel structure with pre- fabricated concrete panels. The exterior surface will have a decorative texture or stain. The building will have a 20' to 22' ceiling. The entire building will be air conditioned, equipped with fire sprinklers, and will have both natural and high intensity lighting. When completed, the new Schafer Gear Works plant will be a state -of -the -art facility designed to meet their future needs in a well located quality building. The total estimated cost of the new construction is $4.2 million. Per the petition, it is estimated that this project will create ten (10) new permanent jobs within the first year, representing a new annual payroll of $250,000 and will maintain ninety -four -17- South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) c. continued.... (94) existing permanent full -time jobs with an annual payroll of $3,040,000. A review of tax abatements previously granted finds that SGW Realty, LLC is associated with Schafer Gear Works. SGW, LLC has been granted six previous tax abatements and they are as follows: (1) A five -year personal personal property tax abatement was granted in January 1998. (2) A five - year personal property tax abatement was granted in July 1998. (3) A five - year personal property tax abatement was granted in June 1991. (4) A five - year personal property tax abatement was granted in July 1993. (5) A ten - year tax abatement was granted in June 1994. (6) A five -year personal property tax abatement was granted in October 1995. SGW Realty, LLC 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 designated 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 Ln -18- South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) c. continued.... Commission. A review of the Tax Abatement Ordinance finds that SGW Realty, LLC meets the qualifications for a ten (10) year real property tax abatement under Industrial Development City -Wide General Standards. Using the estimated project cost of $4,200,000, the taxes generated over the ten -year period will be approximately $2,041,659. Taxes abated over the ten -year period will be approximately $1,010,621. Taxes still to be paid over the ten -year period total approximately $1,031,038. Ms. Schwartz asked Eric Johnson when SGW Realty, LLC plans to relocate to its new facility, and what SGW Realty, LLC plans for its current facility. Mr. Johnson stated that SGW Realty, LLC plans to relocate to its new facility in the second quarter of 1999. He also stated that there are no immediate plans for its current facility. Upon a motion by Ms. Schwartz, seconded by Mr. Blake and unanimously carried, the Commission adopted Resolution No. 1607 approving an application for real property tax deduction for property located in the Airport Economic Development Area. (SGW Realty, LLC) -19- COMMISSION ADOPTED RESOLUTION NO. 1607 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (SGW REALTY, LLC) South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) d. Commission approval requested for Resolution No. 1608 approving the Fair Re -Use Value of property in the South Bend Central Development Area. Mrs. Kolata stated that this resolution is for retail space that is to be constructed in the parking garage, which is part of the Leighton Plaza project. There is approximately 11,526 sf of retail space that will be located along Michigan Street. The proposed re -use is for retail /commercial. The intent is to have retail users occupy the space. The re- use valuation is $10.50 /sf. The bidder can submit a bid for all or a portion of the space. The retail space can be constructed into eight storefronts, but users could construct storefronts that have larger square footages than the eight storefronts would have. There is a required minimum three -year lease term relative to the retail space. Mr. Hunt asked if there have been any inquiries relative to the retail space. Mrs. Kolata stated that there has been one serious inquiry relative to the retail space. Upon a motion by Ms. Schwartz, seconded by Mr. Blake, the Commission adopted Resolution No. 1608 approving the Fair Re -Use Value of property in the South Bend Central Development Area. -20- COMMISSION ADOPTED RESOLUTION NO. 1608 APPROVING THE FAIR RE -USE VALUE OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) L Commission approval requested for Policy on Leasing of Retail Space. Mrs. Kolata stated that the Policy on Leasing Retail Space is for the retail space that is being constructed in the parking garage, which is part of the Leighton Plaza project in the South Bend Central Development Area as well as other retail space in the Wayne Garage, Palais Royale and other Redevelopment owned buildings. There has been discussion in the past on how we would handle situations where an existing retail tenant has reached the end of the lease and wants to enter into a new lease. This Policy addresses that situation. The terms of the Policy on Leasing of Retail Space are as follows: (1) When leasing new retail space, the Redevelopment Commission will go through the full public bid process, including appraisals by two appraisers. (2) If a user of the retail space leaves before the end of the lease term, the Redevelopment Commission will go through the full public bid process. However, new appraisals will be ordered only if the existing appraisals are more than three years old. (3) If the retail space is currently rented but the lease is due to expire, the Redevelopment Commission, through its real estate agent, will negotiate with the tenant to determine the tenant's interest in entering into a new Lease. -21- South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) L continued.... Lease rate negotiations will be determined by updated market information provided by the Commission's agent. If an agreement cannot be reached within sixty (60) days of when the lease is to expire, the Commission will go through the full public bid process. Anne Bruneel stated that the Draft Policy on Leasing the Retail Space needs to be revised to clarify that if a retail space is currently rented and the Lease is due to expire, all of its options are also due to expire. The tenant would have to enter into a new Lease. Upon a motion by Mr. Donoho, seconded by Mr. Blake and unanimously carried, the Commission approved the Policy for Leasing of Retail Space, as amended. g. Commission approval requested for Bid Specifications for parking garage retail space in the 100 Block of S. Michigan Street. Mrs. Kolata stated that these are the bid specifications that will be sent out in the bid packets relative to the retail space as part of the parking garage in the 100 Block of S. Michigan Street. They are as follows: (1) The retail space would be located on the first floor of the Leighton Plaza parking garage at -22- COMMISSION APPROVED THE POLICY FOR LEASING OF RETAIL SPACE, AS AMENDED South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) g. continued.... the northwest corner of Michigan and Jefferson Streets. (2) The net rentable space is 11,526 sf. (3) The anticipated build -out dimensions are eight storefronts ranging from 1,173 sf to 1,530 sf. Six storefronts will have dimensions of 30' x 51' and two storefronts will have dimensions of 23' x 51'. (4) The rental /square footage is $10.50 per square foot on a net basis following completion of the improvements to the retail space by the Redevelopment Commission. The tenant pays for utilities, interior maintenance and taxes. (5) There is a three -to- five -year minimum lease term with an option to negotiate a new Lease. (6) The Redevelopment Commission will consider acceptance of a proposal and execution of a Lease upon completion of improvements to the retail space. The improvements are expected to be completed by March 1999. Each storefront will be built out to include exposed concrete floors, drywall dividing walls prepped and ready for paint, dropped ceilings and one ADA restroom. The space will be served by a full HVAC, electrical and fire sprinkler systems. The tenant will be responsible for its own interior finishes, with an allowance provided for floor and wall covering. -23- South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) g. continued.... The tenant will also be responsible for its own signage, which must conform to the development signage plan. The plan will allow for variations in logos, but will not allow temporary or handmade signs visible from the exterior, and will require a certain conformity in window treatment. All improvements to the property, interior or exterior must be approved by the Department of Redevelopment. The following are among the criteria which will guide the Redevelopment Commission in the review and acceptance of a proposal: (1) No bid at less than the net market rent value of $10.50 per square foot. (2) The degree to which the proposal meets the objectives of the Development Plan prepared by the Department of Redevelopment and approved by the Area Plan Commission and the Common Council. (3) The character of the improvements proposed to be made to the property, the bidder's plan and ability to improve and occupy the real estate with reasonable promptness, and any factors which will assure the Commission that the project will further the carrying out of the Development Plan and will best serve the interest of the community, both from the standpoint of human and economic welfare. (4) The financial responsibility, qualifications, -24- South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) g. continued.... experience and ability of the bidder to finance and carry out the project. (5) The number of jobs created and retained. (6) Compliance with local codes and zoning requirements and any applicable governmental regulations. (7) Any conflict among these objectives will be reconciled to the best interest of the Redevelopment District and City as determined by the Redevelopment Commission. Proposals must be received by 10:00 a.m., Thursday, July 2, 1998, in the office of the Department of Redevelopment at which time all offers will be publicly opened and read aloud. Upon a motion by Mr. Blake, seconded by Ms. Schwartz and unanimously carried, the Commission approved the Bid Specifications for parking garage retail space in the 100 Block of S. Michigan Street. h. Commission authorization to put parking garage retail space up for bid and to set the date bids will be received. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission authorized putting the parking garage retail space up for bid and set 10:00 a.m., on Thursday, July 2, 1998, as the -25- COMMISSION APPROVED THE BID SPECIFICATIONS FOR PARKING GARAGE RETAIL SPACE IN THE 100 BLOCK OF S. MICHIGAN STREET South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) h. continued.... COMMISSION AUTHORIZED PUTTING THE PARKING GARAGE RETAIL SPACE UP FOR BID AND date bids are to be received. SET THURSDAY, JULY 2, 1998, AS THE DATE BIDS ARE TO BE RECEIVED i. Commission authorization requested for Release of Rental Lease Agreement with Michiana Arts & Sciences Council, Inc. Mrs. Kolata stated that Michiana Arts & Sciences Council, Inc. requests a Release of its Rental Lease Agreement effective June 30, 1998, without having an obligation to pay the remaining monthly rental payments for the full length of the Lease under the Lease terms as they are dissolving effective June 30, 1998. The staff recommends approving the request for Release of the Rental Lease Agreement, subject to Michiana Arts & Sciences Council, Inc. removing all of its item from the basement storage area by June 30, 1998, or it will be obligated to pay the remaining monthly rental payments for the full term of the Lease under the terms of the Lease. Ms. Schwartz noted for the record that releasing a tenant of its Rental Lease Agreement before the Lease Agreement expires without having to pay the full amount of the Lease under the terms of the Lease is not normal procedure. -26- South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) i. continued.... Upon a motion n by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the Release of Rental Lease Agreement with Michiana Arts & Sciences Council, Inc., subject to Michiana Arts & Sciences Council, Inc. removing all of its items from the basement storage area by June 30, 1998, or it will be required to pay to full amount of the Lease under the Lease terms. j. Commission approval requested for Commercial Property Management Ce Agreement with CB/Robert Bradley Associates. Mrs. Kolata stated that the Commission previously chose CB/Robert Bradley Associates to manage the Commission's retail space, and this is CB/Robert Bradley's Contract for management services for the Commission's consideration. The term of the Contract is from March 1, 1998, through February of 2000. Anne Bruneel stated that item 3.b. in the Contract states that the Redevelopment Authority and the Redevelopment Commission are the owners of the parking garage that is being constructed in the 100 Block of S. Michigan Street. She stated that the Civil City of South Bend is -27- COMMISSION APPROVED THE RELEASE OF RENTAL LEASE AGREEMENT WITH MICHIANA ARTS & SCIENCES COUNCIL, INC., SUBJECT TO MICHIANA ARTS & SCIENCES COUNCIL, INC. REMOVING ALL OF ITS ITEMS FROM THE BASEMENT STORAGE AREA BY JUNE 30, 1998, OR IT WILL BE REQUIRED TO PAY TO FULL AMOUNT OF THE LEASE UNDER THE LEASE TERMS South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) j. continued.... constructing the parking garage. The Contract needs to be modified to reflect that the Redevelopment Commission does not have nor will it have an ownership interest in the retail space, but it will possibly have a leasehold interest in the retail space. Upon a motion by Mr. Blake, seconded by Mr. Donoho and unanimously carried, the Commission approved the Commercial Property Management Agreement with CB/Robert Bradley Associates, as amended. Ms. Schwartz abstained from the vote of this agenda item due to a conflict of interest. k. Commission approval requested for Listing Contract with the Stone Real Estate Group. Mrs. Kolata stated this Listing Contract is in line with the proposals received by the Redevelopment Commission in late 1997 and accepted by the Redevelopment Commission. This is the actual written Contract. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the Listing Contract with the Stone Real Estate Group. -28- COMMISSION APPROVED THE COMMERCIAL PROPERTY MANAGEMENT AGREEMENT WITH CB /ROBERT BRADLEY ASSOCIATES, AS AMENDED COMMISSION APPROVED THE LISTING CONTRACT WITH THE STONE REAL ESTATE GROUP . South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) 1. Commission approval requested for Listing Contract for Blackthorn Corporate Park with the Stone Real Estate Group. Mrs. Kolata stated that this Contract is in line with the proposals received by the Redevelopment Commission in late 1997 and accepted by the Redevelopment Commission. This is the written Contract. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the Listing Contract for Blackthorn Corporate Park with the Stone Real Estate Group. m. Commission approval requested for Special Promotions and Marketing Promotions at Blackthorn Golf Club. Mrs. Kolata stated that the staff recommends accepting the Special Promotions and Marketing Promotions at Blackthorn Golf Club for the foreseeable future, and the Special Promotions and Marketing Promotions will remain in place until such time as they are amended or revised, etc. These promotions are very nearly identical to the promotions approved in 1997 Upon a motion by Mr. Donoho, seconded by Mr. Blake and unanimously carried, the Commission approved the Special Promotions and -29- COMMISSION APPROVED THE LISTING CONTRACT FOR BLACKTHORN CORPORATE PARK WITH THE STONE REAL ESTATE GROUP I 1 1 South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) m. continued.... Marketing Promotions at Blackthorn Golf Club. n. Commission approval requested for Contract for Purchase and Sale of Property with SSP Properties in the South Bend Central Development Area. (Lot at Lafayette and South Streets) o. Commission approval requested for Contract for Sale of Land for Private Redevelopment with SSP Properties in the South Bend Central Development Area. (Portion of the former Dreisbach site) Mrs. Kolata stated that items 6.n. and 6.o. are related. She stated that items 6.n. and 6.o. are drafted Contracts with SSP Properties in the South Bend Central Development Area. The Contract for Purchase and Sale of Property with SSP Properties is for purchase of the Studebaker Museum Lot. The Commission previously accepted a counteroffer from SSP Properties with the terms listed in the Contract for Purchase and Sale of the Property. The Contract for Sale of Land for Private Redevelopment is for sale of a portion of the former Dreisbach property. -30- COMMISSION APPROVED THE SPECIAL PROMOTIONS AND MARKETING PROMOTIONS AT BLACKTHORN GOLF CLUB � l � South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) Mrs. Kolata stated that more comments need to be heard from SSP Properties relative to the Contract for Sale of Land for Private Redevelopment. She also stated that a closing with SSP Properties is scheduled for Wednesday, June 10, 1998, at 10:00 a.m. The staff recommends approving the Contract for Purchase and Sale of Property with SSP Properties in the South Bend Central Development Area for the Lot at Lafayette and South Streets. The staff also recommends approving the Contract for Sale of Land for Private Redevelopment with SSP Properties in the South Bend Central Development Area for a portion of the former Dreisbach site. Mrs. Kolata requested that the Commission authorize Anne Bruneel to inform the Commission of any substantial changes to the Contracts that might need to come before the Commission for its consideration. Upon a motion by Ms. Schwartz, COMMISSION APPROVED THE CONTRACT FOR seconded by Mr. Donoho and PURCHASE AND SALE OF PROPERTY WITH SSP unanimously carried, the Commission PROPERTIES IN THE SOUTH BEND CENTRAL approved the Contract for Purchase and DEVELOPMENT AREA (LOT AT LAFAYETTE AND SOUTH STREETS), SUBJECT TO COMPLETION OF Sale of Property with SSP Properties in NEGOTIATIONS BETWEEN SSP PROPERTIES AND the South Bend Central Development ANNE BRUNEEL, ATTORNEY FOR Area (Lot at Lafayette and South REDEVELOPMENT Streets), subject to completion of negotiations between SSP Properties -31- South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) and Anne Bruneel, attorney for Redevelopment. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the Contract for Sale of Land for Private Redevelopment with SSP Properties in the South Bend Central Development Area (Portion of the former Dreisbach site), subject to completion of negotiations between SSP Properties and Anne Bruneel, attorney for Redevelopment. p. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 124 Studebaker. (Callie Mae Pulliam) Mrs. Kolata stated that the loan to Callie Mae Pulliam is in the amount of $5,500 at 0% interest for ten years with monthly payments of $45.83. The grant is in the amount of $5,296.50 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 124 Studebaker. (Callie Mae Pulliam) -32- COMMISSION APPROVED THE CONTRACT FOR SALE OF LAND FOR PRIVATE REDEVELOPMENT WITH SSP PROPERTIES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (PORTION OF THE FORMER DREISBACH SITE), SUBJECT TO COMPLETION OF NEGOTIATIONS BETWEEN SSP PROPERTIES AND ANNE BRUNEEL, ATTORNEY FOR REDEVELOPMENT COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 124 STUDEBAKER. (CALLIE MAE PULLIAM) J 1' South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) q. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 602 S. Grant St. (Gladys Hoffman) Mrs. Kolata stated that the loan to Gladys Hoffman is in the amount of $1,600 at 0 % interest with monthly payments of $26.67. The grant is in the amount of $1,424.50. Upon a motion by Mr. Blake, 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 602 S. Grant St. (Gladys Hoffman) q. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 1213 E. Miner St. (Brenda Haithcox) Mrs. Kolata stated that the loan to Brenda Haithcox is in the amount of $9,600 at 4% interest with monthly payments of $97.20. The grant is in the amount of $5,665. Upon a motion by Mr. Blake, 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 1213 E. Miner St. (Brenda -33- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 602 S. GRANT ST. (GLADYS HOFFMAN) v 0 • South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) q. continued.... Haithcox) s. Commission authorization requested for use of the Wayne Street Parking Garage for the "World's Largest Garage Sale" from Friday, June 5, 1998, through Saturday, June 6, 1998. Mrs. Kolata stated that the Commission previously approved the use of the Wayne Street Parking Garage for the "World's Largest Garage Sale" from Friday, June 5 ,1998, through Saturday, June 6, 1998, subject to the Parks and Recreation Department providing proof of insurance naming the Redevelopment Authority, Redevelopment Commission and the City of South Bend as additional insureds. Parks and Recreation has submitted this document to provide the required proof of insurance. Upon a motion by Ms. Schwartz, seconded by Mr. Blake and unanimously carried, the Commission approved the use of the Wayne Street Parking Garage for the "World's Largest Garage Sale" for June 5, 1998, through June 6, 1998, naming the Redevelopment Commission and the City of South Bend as additional insureds. -34- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 1213 E. MINER ST. (BRENDA HAITHCOX) COMMISSION APPROVED THE USE OF THE WAYNE STREET PARKING GARAGE FOR THE "WORLD'S LARGEST GARAGE SALE" FROM JUNE 5, 1998, THROUGH JUNE 6, 1998, NAMING THE REDEVELOPMENT COMMISSION AND THE CITY OF SOUTH BEND AS ADDITIONAL INSUREDS t 1 South Bend Redevelopment Commission Regular Meeting - June 5, 1998 6. NEW BUSINESS (CONT.) t. Commission authorization requested to reschedule the July 3, 1998, Redevelopment Commission meeting. Mrs. Kolata stated the Redevelopment Commission has a meeting scheduled for July 3, 1998. The meeting needs to be rescheduled because July 3, 1998, is a City holiday and the County -City Building will not be open. Upon a motion by Ms. Schwartz, seconded by Mr. Blake and unanimously carried, the Commission rescheduled the Redevelopment Commission meeting scheduled for Friday, July 3, 1998, to Thursday, July 2, 1998, at 10:00 a.m. 7. PROGRESS REPORTS Mrs. Kolata reported that she and Carl Littrell accepted MACIAF's Excavation Award relative to the Leighton Plaza project. 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is June 19, 1998, at 10:00 a.m. -35- COMMISSION RESCHEDULED THE REDEVELOPMENT COMMISSION MEETING SCHEDULED FOR FRIDAY, JULY 3, 1998, TO THURSDAY, JULY 2, 1998, AT 10:00 A.M. PROGRESS REPORTS e '' V South Bend Redevelopment Commission Regular Meeting - June 5, 1998 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Blake made a motion that the meeting be adjourned. Ms. Schwartz seconded the motion and th eeting was adjourned at 11: m IZ Robert W. Hunt, President ADJOURNMENT Ann E. Kolata, Director -36-