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Home My WebLink AboutRM 06-19-98SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING June 19, 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 Ms. Eugenia S. Schwartz, Secretary Mr. Philip J. Faccenda Mr. Hardie Blake Member Absent: Mr. Michael Donoho, Vice - President Legal Counsel: Ms. Anne E. Bruneel Redevelopment Staff: Mrs. Ann E. Kolata, Director Mrs. Vangelean Urbanski, Recording Secretary Ms. Amy Tweeten, Economic Development Specialist Mr. Owen Rock, Economic Development Specialist Mrs. Regina Plummer, Intern Mr. Andy Laurent, Intern Business Assistance: Mr. Michael Beitzinger, Economic Development Specialist Ms. Nancy Van Scoyk, Economic Development Specialist Media: Mr. Terry Bland, South Bend Tribune Others: Mr. David Hanover, Shamrock Development, Inc. Mr. Hunt noted that the Executive Session will continue immediately following adjournment of the Regular Meeting. 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of June 5, 1998. Upon a motion by Ms. Schwartz, seconded by Mr. Blake and unanimously carried, the HAWPDATA \C0MMSN\061998.M1N -I- South Bend Redevelopment Commission Regular Meeting - June 19, 1998 2. APPROVAL OF MINUTES (CONT.) a. continued.... Commission approved the Minutes of the Regular Meeting of June 5, 1998. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF JUNE 5, 1998 Redevelopment Commission Claims submitted June 19, 1998 for approval. 212 CDBG COMMUNITY DEVELOPMENT Business Systems Print Shop General Fund - Telephone 360 Communication Ameritech American Electric Power Ann E. Kolata Baer Barkley & Co. Billie's Catering, Inc. Real Estate Management Amy Tweeten Downtown Idea Exchange R.E. Pitts & Associates, Inc. South Bend Water Works 324 FUND Peirce & Associates 414 SAMPLE -EWING FUND The Troyer Group, Inc. Thomas General Construction American Electric Power Metropolitan Title Metropolitan Title Northern Indiana Public Service company Kruse International L.L. Geans & Sons, Inc. L.L. Geans & Sons, Inc. H: \WPDATA \COMMSN\061998.MIN -2- $34.36 $80.70 234.80 $69.16 $26.86 $34.07 $17.85 $3,450.00 $27.90 $300.00 $45.00 $137.00 $1,750.00 $15.56 $3,495.00 $1,473.00 $60.00 $332.85 $170.00 $1,530.00 $3.18 $1,000.00 $36,482.68 $4,692.14 South Bend Redevelopment Commission Regular Meeting - June 19, 1998 3. APPROVAL OF CLAIMS (CONT.) 420 SBCDA GENERAL ACCOUNT Real Estate Management Northern Indiana Public Service Company CB/Robert Bradley Associates G.W. Berkheimer Co. W.W. Grainger ACM Environmental, Inc. Northern Indiana Public Service Company Northern Indiana Public Service Company American Electric Power American Electric Power South Bend Water Works CB/Robert Bradley Associates CB /Robert Bradley Associates Rose Exterminator Co. Superior Waste Systems Commercial Services Howard Park Hardware Upon a motion by Mr. Faccenda, seconded Mr. Blake and unanimously carried, the Commission approved the Claims submitted June 19, 1998, and ordered the checks to be released. Ms. Schwartz abstained. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS Mrs. Kolata asked permission to add items 6.k. and 6.1. to the agenda. There were no objections and the items were added to the agenda. HAW PDATATOMMSM061998.MIN -3- $300.00 $1,013.64 $1,744.71 $21.60 $69.30 $8,070.00 $6.07 $23.20 $595.12 $12.88 $76.53 $135.71 $487.22 $42.00 $67.75 $6.36 COMMISSION APPROVED THE CLAIMS SUBMITTED JUNE 19, 1998, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS ITEMS 6.K. AND 6.L. WERE ADDED TO THE AGENDA South Bend Redevelopment Commission Regular Meeting - June 19, 1998 6. NEW BUSINESS a. Commission approval requested for Resolution No. 1610 approving an application for real property tax deduction for property located in the Sample -Ewing Development Area. (G & M Properties) Mrs. Kolata stated that Garden Homes is constructing four homes, but only two are in the Tax Incremental Financing area. The two properties in the TIF Allocation area are located at 2018 and 2024 South Prospect Street Garden Homes intends to develop new, three bedroom, five -room homes of 1,036 sf, on a full 8' insulated basement. The homes will have a 12' x 20' attached garage, vinyl siding, stove, dishwasher, range hood and garbage disposal. The homes will be built on a minimum 40'x 120' lot that will be seeded upon completion of the home. Per Garden Homes, the importance of this project to the City and the residents of the city is that it will be building affordable homes on infill lots in the City of South Bend. The estimated cost per unit is between $65,000 to $70,000 with a total estimated project cost between $260,000 to $280,000. A review of the tax abatements previously granted, finds that Garden Homes has been granted six previous tax abatements, and they are as follows: (1) A five -year real property tax abatement in August 1995. (2) A five -year real property tax abatement in October 1995. (3) A five -year real HAWPDATA \C0MMSN\061998.MIN -4- South Bend Redevelopment Commission Regular Meeting - June 19, 1998 6. NEW BUSINESS (CONT.) a. continued.... property tax abatement in June 1996. (4) A five -year real property tax abatement in July 1997. (5) A five -year real property tax abatement in May 1998. (6) A five - year real property tax abatement in May 1998. Garden Homes 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 properties located at 2018 and 2024 South Prospect Street are in the Sample -Ewing Development Area, which is a Tax Incremental Allocation Area; therefore, the properties at 2018 and 2024 South Prospect Street must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance, finds that Garden Homes 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, the taxes generated over the five -year period will be $9,209.96 for each home. Tax abated over the five -year period will be approximately H: \WPDATA \COMMSN\061998.MIN -5- South Bend Redevelopment Commission Regular Meeting - June 19, 1998 6. NEW BUSINESS (CONT.) a. continued.... $7,130.29 for each home. Taxes still paid with the abatement over the five -year period will be approximately $2,079.67 for each home. Upon a motion by Ms. Schwartz, seonded by Mr. Faccenda and unanimously carried, the Commission adopted Resolution No. 1610 approving an application for real property tax deduction for property located in the Sample -Ewing Development Area. (G & M Properties) b. Commission approval requested for Resolution No. 1611 determining to pay certain expenses incurred for local public improvements in or serving the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) from the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) Special Fund. Mrs. Kolata stated that this resolution states the Redevelopment Commission's intent to appropriate $3,000,000. $2,500,000.00 is related to tax increment that would be received by the Redevelopment Commission in late June 1998, and $500,000 is from the Build Indiana Fund to redeem bonds on the Hall of Fame project. H: \WPDATA \COMMSN\061998.MIN -6- COMMISSION ADOPTED RESOLUTION NO. 1610 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED IN THE SAMPLE -EWING DEVELOPMENT AREA. (G & M PROPERTIES) South Bend Redevelopment Commission Regular Meeting - June 19, 1998 6. NEW BUSINESS (CONT.) b. continued.... The TIF proceeds will be used to make lease payments on bonds that were issued in the past for local public improvements that are in or serving the Allocation Area. The proceeds will also be used to pay expenses incurred by the Commission for local public improvements. The $3,000,000 is an estimated amount that will be reduced at the time of the public hearing. The resolution also authorizes a public hearing scheduled for July 2, 1998, at 10:00 a.m. Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda and unanimously carried, the Commission adopted Resolution No. 1611 determining to pay certain expenses incurred for local public improvements in or serving the South Bend Central Allocation Area (South Bend Allocation Area No. IA) from the South Bend Central Allocation Area (South Bend Allocation Area No. 1 A) Special Fund. c. Commission approval requested for Resolution No. 1612 determining to pay certain expenses incurred for local public improvements in or serving the Airport Economic Development Area Allocation Area No. 1 ( "Allocation Area No. 1 ") from the Airport Economic Development Area Allocation Area No. 1 Special Fund (the "Allocation Fund "). HAWPDATATOMMSM061998.MIN -7- COMMISSION ADOPTED RESOLUTION NO. 1611 DETERMINING TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. IA) FROM THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. IA) SPECIAL FUND. South Bend Redevelopment Commission Regular Meeting - June 19, 1998 6. NEW BUSINESS (CONT.) c. continued.... Mrs. Kolata stated that the resolution states the Redevelopment Commission's intent to appropriate $1,909,000.00 to make lease payments on bonds that were issued in the past for local public improvements that are in or serving the Allocation Area and to pay expenses incurred by the Commission for local public improvements. She also stated that the $1,909,000 is an estimated amount that would be reduced at the public hearing to be held at 10:00 a.m., on July 2, 1998. Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda, and unanimously carried, the Commission adopted Resolution No. 1612 determining to pay certain expenses incurred for local public improvements in or serving the Airport Economic Development Area Allocation Area No. 1 ( "Allocation Area No. 1 ") from the Airport Economic Development Area Allocation Area No. 1 Special Fund (the "Allocation Fund "). d. Commission approval requested for Resolution No. 1613 determining its intent to pay certain expenses incurred for local public improvements in or serving the Sample -Ewing Allocation Area (South Bend Allocation Area No. 8) from the Sample -Ewing Allocation Area (South Bend Allocation Area No. 8) Special Fund. H: \WPDATA \COMMSN\061998.MM -8- COMMISSION ADOPTED RESOLUTION NO. 1612 DETERMINING TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE AIRPORT ECONOMIC DEVELOPMENT AREA ALLOCATION AREA NO. 1 ( "ALLOCATION AREA NO. 1 ") FROM THE AIRPORT ECONOMIC DEVELOPMENT AREA ALLOCATION AREA NO. 1 SPECIAL FUND (THE "ALLOCATION FUND ") South Bend Redevelopment Commission Regular Meeting - June 19, 1998 6. NEW BUSINESS (CONT.) d. continued.... Mrs. Kolata stated that this resolution states the Redevelopment Commission's intent to appropriate $1,000,000 for local public expenditures relative to projects in the Allocation Area. The resolution sets a public hearing for July 2, 1998, at 10:00 a.m., at which time the exact amount of the appropriation would be determined. Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda and unanimously carried, the Commission adopted Resolution No. 1613 determining its intent to pay certain expenses incurred for local public improvements in or serving the Sample - Ewing Allocation Area (South Bend Allocation Area No. 8) from the Sample - Ewing Allocation Area (South Bend Allocation Area No. 8) Special Fund. e. Commission approval requested for month -to -month extension of Parking Management Agreement with AMPCO Parking for the Wayne Parking Garage. Anne Bruneel asked permission to table item 6.e. There were no objections and item 6.e. was tabled. L Commission approval requested for proposals for appraisal services for property located in the South Bend Central Development Area. HAWPDAMCOMMSM061998.MIN -9- COMMISSION ADOPTED RESOLUTION NO. 1613 DETERMINING ITS INTENT TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE SAMPLE - EWING ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 8) FROM THE SAMPLE - EWING ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 8) SPECIAL FUND ITEM 6.E. WAS TABLED South Bend Redevelopment Commission Regular Meeting - June 19, 1998 6. NEW BUSINESS (CONT.) f. continued.... Mrs. Kolata stated that the space that has been occupied by Michiana Arts and Science Council needs to be appraised. Three proposals were received. The first proposal received was from R.E. McCloskey in the amount of $3,000. The second proposal received was from Baer Barkley in the amount of $875.00 for a lease rate survey (the cost comparison approach), which is what Redevelopment needs. The third proposal received was from R.E. Pitts and Associates in the amount of $850.00. The staff recommends accepting the proposal from Baer Barkley in the amount of $875.00 and the proposal from R.E. Pitts and Associates in the amount of 850.00. Upon a motion by Ms. Schwartz, seconded by Mr. Blake and unanimously carried, the Commission accepted the proposals from Baer Barkley in the amount of $875.00 and R.E. Pitts and Associates in the amount of $850.00 for appraisal services for property located in the South Bend Central Development Area. g. Commission approval requested for proposals for appraisal services for property located in the Sample -Ewing Development Area. Mrs. Kolata stated that five residential properties, a number of multi - family properties and seven vacant lots located in the Sample -Ewing Development Area H: \WPDATA \C0MMSN\061998.MIN _10- COMMISSION ACCEPTED THE PROPOSALS FROM BAER BARKLEY IN THE AMOUNT OF $875.00 AND R.E. PITTS AND ASSOCIATES IN THE AMOUNT OF $850.00 FOR APPRAISAL SERVICES FOR PROPERTY LOCATED IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - June 19, 1998 6. NEW BUSINESS (CONT.) g. continued.... need to be appraised. There were two proposals received. The first proposal received was from Huma Appraisals, which proposes to appraise the single - family residential dwellings and the vacant parcels for a fee not -to- exceed $225.00 for each parcel. Huma Appraisals also proposes to appraise the multi - family residential dwellings for a fee of $300.00 for the first unit, plus $50 each additional unit. The second proposal received was from Douglas L. Carpenter and Associates, Inc. to appraise the single - family residential dwellings for a fee of $225.00 each. Douglas L. Carpenter also proposes to appraise the multi - family dwellings for a fee of $350.00 each, and the vacant land for a fee of $150.00 each. The staff recommends accepting both proposals. Upon a motion by Ms. Schwartz, seconded by Mr. Blake and unanimously carried, the Commission accepted the proposal from Huma Appraisals and Douglas L. Carpenter and Associates, Inc. for appraisal services for property located in the Sample -Ewing Development Area. h. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 738 W. Calvert. (Christine Bruno - Jordan) HAWPDATATOMMSM061998.MIN -11- COMMISSION ACCEPTED THE PROPOSAL FROM HUMA APPRAISALS AND DOUGLAS L. CARPENTER AND ASSOCIATES, INC. FOR APPRAISAL SERVICES FOR PROPERTY LOCATED IN THE SAMPLE -EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - June 19, 1998 6. NEW BUSINESS (CONT.) h. continued.... Mrs. Kolata stated that the loan to Christine Bruno -Jordan is in the amount of $18,200 at 2% interest for 20 years with monthly payments of $91.92. The grant is in the amount of $11,946. Upon a motion by Mr. Blake, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property located at 738 W. Calvert. (Christine Bruno- Jordan) i. Staff report on acquisition of property in the Airport Economic Development Area. Owen Rock, Economic Development Specialist, presented a proposal that was received from One Blackthorn, LLC. One Blackthorn, LLC proposes to purchase a two -acre lot located on Nimtz Parkway in the Blackthorn Corporate Park for a purchase price of $55,000 or $27,500 per acre. One Blackthorn, LLC has submitted the required faithful performance guaranty of 10 percent of the purchase price ($5,000). Mr. Rock introduced Dave Hanover of Shamrock Development, Inc. Mr. Hanover stated that One Blackthorn, LLC anticipates to start construction as soon as possible. It proposes to construct a two -story, 10,000 sf office building. The primary tenant will be Shamrock HAWPDATA \C0MMSN\061998.MIN -12- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 738 W. CALVERT. (CHRISTINE BRUNO- JORDAN) South Bend Redevelopment Commission Regular Meeting - June 19, 1998 6. NEW BUSINESS (CONT.) i. continued.... Development, Inc., who will occupy the second floor. The first floor will be leased out for office use and will have a small area for storage. Shamrock Development, Inc. has approximately thirty employees and expects to increase to 50 employees by the year 2003. Mr. Hunt stated that storing construction materials or equipment in the building would not be allowed. Mr. Hanover stated that only office files and other small items would be stored in the building. Mr. Hanover stated that one side of the building is covered with masonry. He also stated that it was expressed to him that the Commission desires that three sides (front and the two sides) of the building be finished with masonry, that the windows on the sides need to be longer and the garage door should be replaced with double glass doors. Mr. Hanover stated that One Blackthorn, LLC would comply with the requests of the Commission. He also said he would probably move the double glass doors to the back of the building (west side). The staff recommends accepting the proposal from with One Blackthorn, LLC, subject to it complying with the issues that were addressed above. HAWPDATATOMMSM061998.MIN -13- South Bend Redevelopment Commission Regular Meeting - June 19, 1998 6. NEW BUSINESS (CONT.) i. continued.... Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission accepted the proposal from One Blackthorn, LLC for a two -acre lot located on Nimtz Parkway in the Blackthorn Corporate Park, subject to One Blackthorn, LLC finishing at least three sides (front and the two sides) of the building in masonry, making the windows longer and replacing the garage door with two glass doors. Mrs. Kolata stated that Crescent Michiana Properties, LLC would like permission to start mobilizing on their site as soon as possible. We are not scheduled to close on the property until early July. She also stated the Anne Bruneel, attorney for Redevelopment, would work with Crescent Michiana Properties, LLC regarding an Indemnification Agreement. Upon a motion by Mr. Blake, seconded by Mrs. Schwartz and unanimously carried, The Commission approved Crescent Michiana Properties, LLC mobilizing on their site, subject to approval of the Indemnification Agreement by Mrs. Bruneel. j. Commission approval requested for proposal for professional services in the Blackthorn Corporate Park. HAWPDATAWOMMSM061998AIN -14- COMMISSION ACCEPTED THE PROPOSAL FROM ONE BLACKTHORN, LLC FOR A TWO -ACRE LOT LOCATED ON NIMTZ PARKWAY IN THE BLACKTHORN CORPORATE PARK, SUBJECT TO ONE BLACKTHORN, LLC FINISHING AT LEAST THREE SIDES (FRONT AND THE TWO SIDES) OF THE BUILDING IN MASONRY, MAKING THE WINDOWS LONGER AND REPLACING THE GARAGE DOOR WITH TWO GLASS DOORS COMMISSION APPROVED CRESCENT MICHIANA PROPERTIES, LLC MOBILIZING ON THEIR SITE, SUBJECT TO APPROVAL OF THE INDEMNIFICATION AGREEMENT BY MRS. BRUNEEL South Bend Redevelopment Commission Regular Meeting - June 19, 1998 6. NEW BUSINESS (CONT.) j. continued.... Mrs. Kolata stated that an update of the color site plan of the Blackthorn Corporate Park is needed, and would be used as part of marketing efforts for the Corporate Park. She also stated that two proposals were received. The first proposal received was from SiteScapes in the amount of $1,850. The second proposal received was from Cole Associates in the amount of $2,900. The staff recommends accepting the proposal from SiteScapes, Inc. in the amount of $1,850. Upon a motion by Mr. Blake, seconded by Mr. Faccenda and unanimously carried, the Commission accepted the proposal from SiteScapes, Inc. in the amount of $1,850 for professional services in the Blackthorn Corporate Park. k. Commission approval requested for Resolution No. 1617 approving the transfer of real property to the City of South Bend, Indiana. Mrs. Kolata stated that this resolution would transfer property located on West Washington Street to the City of South Bend, which would subsequently transfer the property to South Bend Heritage Foundation. Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission adopted Resolution No. 1617 approving the transfer of real property to HAWPDATATOMMSM061998.MIN -15- COMMISSION ACCEPTED THE PROPOSAL FROM SITESCAPES, INC. IN THE AMOUNT OF $1,850 FOR PROFESSIONAL SERVICES IN THE BLACKTHORN CORPORATE PARK COMMISSION ADOPTED RESOLUTION NO. 1617 APPROVING THE TRANSFER OF REAL PROPERTY TO THE CITY OF SOUTH BEND, INDIANA South Bend Redevelopment Commission Regular Meeting - June 19, 1998 6. NEW BUSINESS (CONT.) j. continued.... the City of South Bend, Indiana. 1. Commission approval requested for proposal for professional services in the Airport Economic Development Area. Mrs. Kolata stated that the Airport Authority has had black and white photos taken of the Blackthorn Corporate Park. Williams Aerial & Mapping proposes to make two black and white enlargements at a scale of 1 " =500' from the existing black and white photos for a fee of $248.66. It also proposes to make two black and white paper enlargements at a scale of 1 " =300' from the existing black and white photo for a fee of $248.66. Williams Aerial & Mapping, Inc. also proposes to take a color photo of Blackthorn Corporate Park for a fee of $1,595, and make a color paper enlargement of Blackthorn for a fee of $288.36. The staff recommends accepting the proposal. Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission accepted the proposal from Williams Aerial & Mapping, Inc. in the amount of 2,380.68 for professional services in the Airport Economic Development Area. HAWPDATA \C0MMSN\061998.MIN -16- COMMISSION ACCEPTED THE PROPOSAL FROM WILLIAMS AERIAL & MAPPING, INC. IN THE AMOUNT OF 2,380.68 FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - June 19, 1998 7. PROGRESS REPORTS There were no Progress Reports. 8. NEXT COMMISSION MEETING: The next Meeting of the Redevelopment Commission is scheduled for Thursday, July 2, 1998, at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Faccenda made a motion that the meeting be adjourned. Mr. Blake seconded the motion an� meeting was adjourned at 10:35 a.m. Robert W. Hunt, President THERE WERE NO PROGRESS REPORTS ADJOURNMENT Ann E. Kolata, Director HAWPDATATOMMSM061998.MIN -17-