HomeMy WebLinkAboutRM 09-04-98SOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
September 4, 1998 1308 County -City Building
10:00 a.m. 227 West Jefferson Boulevard
Presiding: Robert W. Hunt, President South Bend, Indiana
1. ROLL CALL
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. Ann -Carol Nash
Redevelopment Staff: Mrs. Ann E. Kolata, Director
Mrs. Cheryl Phipps, Recording Secretary
Mr. John Stark, Economic Development Specialist
Ms. Amy Tweeten, Economic Development Specialist
Ms. Kimberlie Warren, Intern
Ms. Hedy Robinson, Economic Development Specialist
Business Assistance: Mr. Michael Beitzinger, Economic Development Specialist
Others: Ms. Lynn Madison, The Ultimate Connection, Inc.
2. APPROVAL OF MINUTES
a. Commission approval of the Minutes of
the Regular Meeting of August 21, 1998.
Upon a motion by Mr. Donoho, seconded
by Mr. Faccenda and unanimously carried,
the Commission approved the Minutes of
the Regular Meeting of August 21, 1998.
HAWPDATA \C0MMSN\090498.MIN 4-
COMMISSION APPROVED THE MINUTES OF THE
REGULAR MEETING OF AUGUST 21, 1998
South Bend Redevelopment Commission
Regular Meeting - September 4, 1998
3. APPROVAL OF CLAIMS
Redevelopment Commission Claims submitted September 4, 1998 for approval.
212 CDBG COMMUNITY DEVELOPMENT
South Bend Tribune
Calendars
Service America
Douglas L. Carpenter & Associates, Inc.
The Abonmarche Group
Calendars
Roeing Corporation
Urban Land Institute
Indiana Association of Cities & Towns
360 Communications
South Bend Tribune
Century Center Board of Managers
American Electric Power
NIPSCO
Liability Insurance
FedEx
General Fund - Telephone
General Fund- Telephone
324 FUND
American Electric Power
414 SAMPLE -EWING FUND
Monroe Restoration & Cleaning Inc.
Northern Indiana Public Service Company
Thomas General Construction
American Electric Power
Foegley Landscape, Inc.
St. Joseph County Treasurer
420 SBCDA GENERAL ACCOUNT
East Race Properties
APA
R & R Excavating
Ritschard Bros, Inc.
H: \WPDATA \COMMSN\090498.MIN -2-
$597.54
$24.70
$189.12
$150.00
$10,800.00
$19.75
$3,240.73
$130.90
$50.00
$69.85
$38.76
$27.50
$19.72
$12.08
$437.00
$65.95
$256.03
$202.46
$5,046.56
$719.00
$6.36
$1,500.00
$11.87
$132.00
$856.98
$40,277.66
$345.00
$41,448.87
$55,797.95
South Bend Redevelopment Commission
Regular Meeting - September 4, 1998
3. APPROVAL OF CLAIMS (CONT.)
420 SBCDA GENERAL ACCOUNT
R.E. McCloskey & Associates, Inc.
$2,500.00
Vfp Fire Systems
$500.00
NIPSCO
$6.44
NIPSCO
$6.07
Superior Waste Systems
$38.39
Rose Exterminator
$42.00
CB/Robert Bradley Associates
$77.03
CB/Robert Bradley Associates
$508.00
American Electric Power
$996.91
Upon a motion by Mr. Faccenda, seconded by COMMISSION APPROVED THE CLAIMS SUBMITTED
Mr. Donoho and unanimously carried, the SEPTEMBER 4, 1998, AND ORDERED THE CHECKS
Commission approved the Claims submitted TO BE RELEASED
September 4, 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
a. Opening of bids received regarding the
retail space at 101 W. Colfax Street in
the South Bend Central Development
Area.
Mrs. Kolata stated that no bids were
received as of 10:00 a.m., this morning.
H: \WPDATA \COMMSN\090498.MIN -3-
THERE WERE NO COMMUNICATIONS
THERE WAS NO OLD BUSINESS
South Bend Redevelopment Commission
Regular Meeting - September 4, 1998
6. NEW BUSINESS (CONT.)
b. Commission approval requested for
Resolution No. 1637 approving an
application for real property tax
deduction for property at 119 N.
Michigan Street. (The Ultimate
Connection, Inc.)
The following staff report was presented to
the Commission for its consideration.
The Ultimate Connection, Inc.'s proposed
rehabilitation project is to develop a cyber
cafe in the downtown business district.
Physical improvements include cleaning,
painting and upgrading the property and
adding a cafe where you can surf the
internet. The estimated cost of the project
is $120,000 for Phase I —a cafe; $30,000
for Phase II —a high speed gaming area;
$50,000 for Phase III —a full restaurant.
The total estimated cost of the project is
$200,000.
Per the petition, it is estimated that this
project will create 10 new, permanent jobs
within the first year, representing a new
annual payroll of $150,000.
A review of the tax abatements previously
granted finds that The Ultimate
Connection, Inc. has not been granted
previous tax abatement. The building
commissioner has reviewed the petition
and finds the property to be properly
zoned for the proposed project.
H: \WPDATA \COMMSN\090498.MIN -4-
South Bend Redevelopment Commission
Regular Meeting - September 4, 1998
6. NEW BUSINESS (CONT.)
b. continued....
The property is located in an area
presently designated as a Tax Abatement
Impact Area by the South Bend Common
Council.
The property is located in an Economic
Development Target Area established by
the South Bend Economic Development
Commission, which is a requirement when
considering tax abatement for this type of
business.
A review of the designated South Bend
Redevelopment areas finds that the
property is located in the South Bend
Central Development Area, which is a Tax
Increment Allocation Area; therefore, the
petition for real and personal property tax
abatement must first be approved by the
South Bend Redevelopment Commission.
A review of the Tax Abatement Ordinance
finds that The Ultimate Connection, Inc.
meets the qualifications for a six -year real
property tax abatement under Retail
Development in the Central Business
District, the East Bank Development Area
and Tax Abatement Impact Areas.
Using the estimated project cost of
$200,000, the taxes generated over the six -
year period will be approximately
$21,964. Taxes abated over the six -year
period will be $12,910. Taxes still paid
with the abatement over the six -year
period will be approximately $9,054.
H: \WPDATA \C0MMSN\090498.MIN -5-
South Bend Redevelopment Commission
Regular Meeting - September 4, 1998
6. NEW BUSINESS (CONT.)
b. continued....
Mike Beitzinger, an Economic
Development Specialist, introduced Lynn
Madison, one of the owners of The
Ultimate Connection, Inc. Ms. Madison
stated The Ultimate Connection, Inc.
proposes to develop its project in three
phases. Phase I is the development of the
cyber cafe in the former Senor Kelly's
building in downtown South Bend. The
cyber cafe would sell cafe food and would
have computers available in the cafe for
purchase or to be used on the site with
access to the internet. The computers on
the site for immediate use would be
connected to a T Line, which would
allow faster access to the internet than
what is available in offices today. Web
posting, webpage designing and personal
computer purchasing would also be
available. Phase II is the development of
the high -speed gaming area, which would
be located in the lower level of the
building. Phase III is the development of
the full restaurant. Ms. Madison stated
that there are a growing number of cyber
cafes being developed in the United States.
She also stated that The Ultimate
Connection, Inc. felt that developing a
cyber cafe in downtown South Bend
would be to The Ultimate Connection,
Inc.'s advantage.
Mr. Blake asked Ms. Madison if the cyber
cafe would consist of a restaurant and a
personal computer - retail store. Ms.
Madison stated that is correct. She also
HAWPDATATOMMSM090498.MIN -6-
South Bend Redevelopment Commission
Regular Meeting - September 4, 1998
6. NEW BUSINESS (CONT.)
b. continued....
stated that The Ultimate Connection, Inc.
could build a computer for a customer
based on the customer's specifications.
Mr. Blake asked Ms. Madison if the
computer would be built by The Ultimate
Connection, Inc., or ordered from another
computer distributor. Ms. Madison stated
that The Ultimate Connection, Inc. would
either build the computer or order it.
Ms. Madison stated that there would be
between 25 and 30 computers available for
immediate use at the cyber cafe. She also
stated that a customer could bring in their
personally owned laptop, plug it in and use
it at the cyber cafe for a nominal fee.
Mr. Blake asked Ms. Madison if The
Ultimate Connection, Inc. has its own
website. Ms. Madison stated that The
Ultimate Connection, Inc. does have its
own website.
Ms. Schwartz asked Ms. Madison if The
Ultimate Connection, Inc. has a currently
existing business operation. Ms. Madison
stated that two of The Ultimate
Connection, Inc. owners do have currently
existing businesses in St. Joseph Station,
but their businesses do not have a
restaurant in them, just computers.
HAWPDATA \COMMSN\090498.MIN -7-
South Bend Redevelopment Commission
Regular Meeting - September 4, 1998
6. NEW BUSINESS (CONT.)
b. continued....
Mr. Hunt asked Ms. Madison if the
restaurant in the cyber cafe would have a
liquor license. Ms. Madison stated that
The Ultimate Connection, Inc. plans to
apply for a two -way liquor license.
Mr. Blake asked Ms. Madison about the
time of day the cyber cafe would open for
business. Ms. Madison stated that the
cyber cafe would open at 6:30 am. and
close at 9:00 pm.
Ms. Schwartz asked Ms. Madison about
the high -speed gaming. Ms. Madison
stated that individuals at different
computers in the cyber cafe could play
games against each other or against
individuals around the world via internet.
Mrs. Kolata asked Ms. Madison if the
cyber cafe would be open seven days a
week. Ms. Madison stated that is correct.
Mrs. Kolata asked Ms. Madison about the
location of the high -speed gaming area.
Ms. Madison stated that the high -speed
gaming area would be in the basement of
the building.
Mrs. Kolata asked Ms. Madison if The
Ultimate Connection, Inc. plan to make
any changes to the exterior of the building.
Ms. Madison stated that The Ultimate
Connection, Inc. plans to clean the exterior
of the building.
HAWPDATA \COMMSN\090498.MIN -8-
South Bend Redevelopment Commission
Regular Meeting - September 4, 1998
6. NEW BUSINESS (CONT.)
b. continued....
Mr. Hunt asked Ms. Madison if The
Ultimate Connection, Inc. is given a two -
way liquor license, would the liquor be
sold in a certain area of the cafe.
Ms. Madison stated that The Ultimate
Connection, Inc. would find out the
guidelines for the two -way liquor license.
She also stated that The Ultimate
Connection, Inc. plans to sell the liquor, if
The Ultimate Connection, Inc. is granted
the two -way liquor license by the State, on
the first floor. Ms. Madison stated that
there would be two entrances to the
building. There would be an entrance in
the front and on the side of the building.
Ms. Schwartz asked Ms. Madison if she is
an officer in The Ultimate Connection,
Inc. Ms. Madison stated that she is the
president of The Ultimate Connection, Inc.
Mrs. Kolata asked Ms. Madison when
would the cyber cafe open for business.
Ms. Madison stated that The Ultimate
Connection, Inc. plans to open the cyber
cafe in mid - October.
Upon a motion by Mr. Blake, seconded by
Mr. Donoho and unanimously carried, the
Commission adopted Resolution No. 1637
approving an application for real property
tax deduction for property at 119 N.
Michigan Street. (The Ultimate
Connection, Inc.)
H: \WPDATA \COMMSN\090498.MIN -9-
COMMISSION ADOPTED RESOLUTION NO. 1637
APPROVING AN APPLICATION FOR REAL
PROPERTY TAX DEDUCTION FOR PROPERTY AT
119 N. MICHIGAN STREET. (THE ULTIMATE
CONNECTION, INC.)
South Bend Redevelopment Commission
Regular Meeting - September 4, 1998
6. NEW BUSINESS (CONT.)
c. Commission approval requested for an
extension of the Agreement with the Jr.
Irish Soccer Club regarding use of the
Blackthorn Corporate Park Minor #6
for the Fall 1998 and Spring 1999
Seasons.
Mrs. Kolata stated that the Jr. Irish Soccer
Club has been parking on Redevelopment
owned land, which is adjacent to the Jr.
Irish Soccer Club's soccer fields, until the
Jr. Irish Soccer Club builds a permanent
parking lot on the east side of its complex.
The Jr. Irish Soccer Club requested an
extension of its Agreement through the fall
of 1998 and the spring of 1999, ending on
June 30, 1999. The staff recommends
extending the Agreement, subject to
receiving an Indemnification and Hold
Harmless Undertaking Agreement and a
Certificate of Insurance.
Mrs. Kolata stated that the Redevelopment
Authority approved the extension of the
Agreement earlier this week.
Upon a motion by Mr. Faccenda, seconded
by Mr. Blake and unanimously carried, the
Commission approved the extension of the
Agreement with the Jr. Irish Soccer Club
regarding use of the Blackthorn Corporate
Park Minor #6 for the Fall 1998 and
Spring 1999 Seasons, subject to the Jr.
Irish Soccer Club providing the
Indemnification and Hold Harmless
Undertaking Agreement and a Certificate
of Insurance.
HAWPDATA \C0MMSN\090498.MW -10-
COMMISSION APPROVED THE EXTENSION OF THE
AGREEMENT WITH THE JR. IRISH SOCCER CLUB
REGARDING USE OF THE BLACKTHORN
CORPORATE PARK MINOR #6 FOR THE FALL 1998
AND SPRING 1999 SEASONS, SUBJECT TO THE JR.
IRISH SOCCER CLUB PROVIDING THE
INDEMNIFICATION AND HOLD HARMLESS
UNDERTAKING AGREEMENT AND A CERTIFICATE
OF INSURANCE
South Bend Redevelopment Commission
Regular Meeting - September 4, 1998
6. NEW BUSINESS (CONT.)
d. Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property at 413 S. Jackson Street.
(Joseph MacHatton)
Mrs. Kolata stated that the Certificate of
Waiver forgives $2,250 as of June 24,
1998.
Upon a motion by Ms. Schwartz, seconded
by Mr. Donoho and unanimously carried,
the Commission approved the Certificate
of Waiver in connection with the Rental
Rehab Loan Program for property at 413
S. Jackson Street. (Joseph MacHatton)
e. Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property at 1014 N. Eddy Street.
(Norman & Deborah Buckman)
Mrs. Kolata stated that the Certificate of
Waiver forgives $789 as of August 30,
1998.
Upon a motion by Ms. Schwartz, seconded
by Mr. Donoho and unanimously carried,
the Commission approved the Certificate
of Waiver in connection with the Rental
Rehab Loan Program for property at 1014
N. Eddy Street. (Norman & Deborah
Buckman)
HAWPDATA \C0MMSN\090498.M1N -11-
COMMISSION APPROVED THE CERTIFICATE OF
WAIVER IN CONNECTION WITH THE RENTAL
REHAB LOAN PROGRAM FOR PROPERTY AT 413 S.
JACKSON STREET. (JOSEPH MACHATTON)
COMMISSION APPROVED THE CERTIFICATE OF
WAIVER IN CONNECTION WITH THE RENTAL
REHAB LOAN PROGRAM FOR PROPERTY AT 1014 N.
EDDY STREET. (NORMAN & DEBORAH BUCKMAN)
South Bend Redevelopment Commission
Regular Meeting - September 4, 1998
6. NEW BUSINESS (CONT.)
f. Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property at 1003 N. Sherman. (Thomas
& Michelle Brademas)
Mrs. Kolata stated that the Certificate of
Waiver forgives $1,259 as of January 4,
1998.
Upon a motion by Ms. Schwartz, seconded
by Mr. Donoho and unanimously carried,
the Commission approved the Certificate
of Waiver in connection with the Rental
Rehab Loan Program for property at 1003
N. Sherman. (Thomas & Michelle
Brademas)
g. Presentation of South Gateway
Commercial Corridor Action Plan.
Mrs. Kolata stated that the South Gateway
Commercial Corridor Action Plan was
received approximately a week ago from
Business Districts, Inc.
Mrs. Kolata stated that the South Gateway
Commercial Corridor Action Plan was
developed by Business Districts, Inc., a
consulting firm from Evanston, Illinois.
The Redevelopment staff provided most of
the data which went into the Action Plan,
but Business Districts, Inc. worked with
the neighborhood business owners along
the commercial strip to gather additional
information. Business Districts, Inc.
generated a list of recommendations for
implementation.
HAWPDATA \C0MMSN\090498.MIN -12-
COMMISSION APPROVED THE CERTIFICATE OF
WAIVER IN CONNECTION WITH THE RENTAL
REHAB LOAN PROGRAM FOR PROPERTY AT 1003 N.
SHERMAN. (THOMAS & MICHELLE BRADEMAS)
South Bend Redevelopment Commission
Regular Meeting - September 4, 1998
6. NEW BUSINESS (CONT.)
g. continued....
John Stark, an Economic Development
Specialist, gave a presentation on the
South Gateway Commercial Corridor
Action Plan to the Commission.
h. Commission approval requested for
proposal from The Abonmarche Group
for professional services in the Sample -
Ewing Development Area.
Mrs. Kolata stated that the proposal
received was from The Abonmarche
Group to stake individual lots in the
southeast neighborhood. These lots have
been transferred to the Board of Public
Works, which will subsequently transfer
the lots to American Home Dreams, Inc.
for a new subdivision development.
The fee for this work is not -to- exceed
$5,000. The staff recommends accepting
the proposal.
Upon a motion by Ms. Schwartz, seconded
by Mr. Donoho and unanimously carried,
the Commission accepted the proposal
from The Abonmarche Group in the
amount not -to- exceed $5,000 for
professional services in the Sample -Ewing
Development Area, subject to
confirmation that staking of these lots
were part of the Agreement when the lots
were transferred to the Board of Public
Works.
HAWPDATA \C0MMSN\090498.MIN -13-
COMMISSION ACCEPTED THE PROPOSAL FROM
THE ABONMARCHE GROUP IN THE AMOUNT NOT -
TO- EXCEED $5,000 FOR PROFESSIONAL SERVICES
IN THE SAMPLE -EWING DEVELOPMENT AREA,
SUBJECT TO CONFIRMATION THAT STAKING OF
THESE LOTS WERE PART OF THE AGREEMENT
WHEN THE LOTS WERE TRANSFERRED TO THE
BOARD OF PUBLIC WORKS
South Bend Redevelopment Commission
Regular Meeting - September 4, 1998
7. PROGRESS REPORTS
Mrs. Kolata introduced Kimberlie Warren, an
Intern with the Division of Redevelopment.
She is in the Public Administration master's
program at IUSB.
Mrs. Kolata stated that Amy Tweeten's last
day is September 11. She has accepted a
position in Monroe, Michigan. John Stark
will resign on September 18. He has accepted
a position in Richfield, Minnesota.
The Commissioners thanked both Amy
Tweeten and John Stark for all the work they
have done for the Division of Redevelopment,
and wished them well in their new positions.
8. NEXT COMMISSION MEETING:
The next Regular Meeting of the
Redevelopment Commission is scheduled for,
September 18, 1998, at 10:00 a.m.
9. ADJOURNMENT
There being no further business to come
before the Redevelopment Commission,
Ms. Schwartz made a motion that the meeting
be adjourned. Mr. Donoho seconded the
motion and the meeting was adjourned at
11:00
Robert W. Hunt, President
ADJOURNMENT
Ann E. Kolata, Director
HAWPDATA \C0MMSM090498.MIN -14-