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HomeMy WebLinkAboutRM 10-02-98SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING October 2, 1998 10:00 a.m. Presiding: Robert W. Hunt, President 1. ROLL CALL 1308 County -City Building 227 West Jefferson Boulevard South Bend, Indiana Members Present: Mr. Robert W. Hunt, President Mr. Michael Donoho, Vice - President Ms. Eugenia S. Schwartz, Secretary Mr. Hardie Blake Member Absent: Mr. Philip J. Faccenda Legal Counsel: Ms. Anne E. Bruneel Redevelopment Staff: Mrs. Ann E. Kolata, Director Mrs. Vangelean Urbanski, Recording Secretary Ms. Hedy Robinson, Economic Development Specialist Mrs. Michele Bush, Economic Development Specialist Business Assistance: Ms. Nancy VanScoyk, Economic Development Specialist Media: Mr. Terry Bland, South Bend Tribune Others: Mr. Dick Monagle, Federal -Mogul South Bend, Inc. Mr. Earl Hoff, Federal -Mogul South Bend, Inc. Mr. Hunt noted that the Executive Session will continue immediately following the adjournment of the Regular Meeting. 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of September 18, 1998. Upon a motion by Mr. Blake, seconded by Mr. Donoho and carried, the Commission approved the Minutes of the Regular HAWPDATMCOMMSM100298.MIN 4- South Bend Redevelopment Commission Regular Meeting - October 2, 1998 2. APPROVAL OF MINUTES a. continued.... Meeting of September 18, 1998. Ms. Schwartz abstained. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF SEPTEMBER 18, 1998 Redevelopment Commission Claims submitted October 2, 1998 for approval. 212 CDBG COMMUNITY DEVELOPMENT Petty Cash General Fund- Telephone Federal Express Liability Insurance Baker & Daniels 324 FUND AWN South Bend Monument Works Metropolitan Title Omnicraft International Williams Aerial and Mapping, Inc. 414 SAMPLE -EWING FUND R.E. Pitts & Associates, Inc. D & L Excavating, Inc. Northern Indiana Public Service Company Robert D. Sailors 420 SBCDA GENERAL ACCOUNT Rose Exterminator CB/Robert Bradley Associates CB/Robert Bradley Associates American Electric Power Jerome E. Michaels Garman Thornburg Electric Michiana Lock & Key Big C Lumber NIPSCO HAWPDATA \C0MMSN\100298.MIN -2- $154.24 $204.21 $78.95 $437.00 $2,312.04 $2,545.00 $170.00 $682.47 $98.50 $7,000.00 $46,200.00 $6.36 $4,500.00 $42.00 $470.09 $255.76 $58.26 $3,500.00 $99.00 $21.00 $19.60 $7.40 South Bend Redevelopment Commission Regular Meeting - October 2, 1998 3. APPROVAL OF CLAIMS (CONT.) 420 SBCDA GENERAL ACCOUNT NIPSCO $6.06 Mrs. Kolata asked permission to add one Claim to the Claims list. There was no objection and the Claim was added to the list. Upon a motion by Mr. Donoho, seconded by COMMISSION APPROVED THE AMENDED CLAIMS Mr. Blake and carried, the Commission SUBMITTED OCTOBER 2, 1998, AND ORDERED THE approved the amended Claims submitted CHECKS TO BE RELEASED October 2, 1998, and ordered the checks to be released. Ms. Schwartz abstained. 4. COMMUNICATIONS There was one Communication received. A letter was received from Mary Beth Thompson of the Bureau of Housing regarding a Loan and Grant in connection with the Affordable Loan Program for the property at 617 S. Columbia owned by William W. Taylor. Mr. Taylor's loan and grant application was submitted to the Commission for its consideration on August 7, 1998. At that time, there were questions which needed to be answered by the Bureau of Housing regarding the extensiveness of the damages done to the house by active termites. The Bureau of Housing reported at the August 21, 1998, Commission meeting that the active termites caused extensive damage to the floor joists which would be replaced by a hired contractor. The contractor would replace the floor joists and treat them approximately nine to 10 times. Also, the roof of the house needed HAWPDATATOMMSM100298.MIN -3- South Bend Redevelopment Commission Regular Meeting - October 2, 1998 4. COMMUNICATIONS (CONT.) to be completely redone. As of today, Mr. Taylor has decided not to move forward with the work which needs to be completed on his house at 617 S. Columbia Street, because of the high cost of the repairs, and the Bureau of Housing communicated this in writing to the Commission. The Commissioners asked that the Bureau of Housing follow up on the termite situation. 5. OLD BUSINESS There was no Old Business. THERE WAS NO OLD BUSINESS 6. NEW BUSINESS a. Commission approval requested for Resolution No. 1640 approving an application for real property tax deduction for property at 3605 West Cleveland Road in the Airport Economic Development Area. (Federal - Mogul South Bend, Inc.) The following staff report was presented to the Commission for its consideration. Federal -Mogul South Bend, Inc. is proposing to expand its existing business to include a 25,000 sq ft. addition to its building. The expansion will include piston assembly equipment, additional piston coating and piston anodize equipment. Federal -Mogul South Bend, Inc. manufactures automotive pistons from raw aluminum to a finished product for H:\WPDATA\C0MMSN\100298.MIN -4- South Bend Redevelopment Commission Regular Meeting - October 2, 1998 6. NEW BUSINESS (CONT.) a. continued.... General Motors, Ford and others. The expansion will enable the company to do more in -house manufacturing rather than having it outsourced. The building addition will cost $1,300,000 and the equipment cost will be $3,685,000. The total estimated cost of this project is $4,985,000. It is estimated that the equipment will generate additional sales of $7,986,000 by the year 2000. Per the petition, it is estimated that this project will create 48 new, permanent jobs within the first year, representing a new annual payroll of $1,340,000 and will maintain 400 existing permanent full -time jobs with an annual payroll of $14,000,000. A review of the tax abatements previously granted, finds that Federal-Mogul South Bend, Inc. (formerly known as AE Piston Products, Inc. and AE Goetze, Inc.) has been granted several previous tax abatements: (1) A 10 -year real property tax abatement in May 1986; (2) A five - year personal property tax abatement in May 1986; (3) A five -year personal property tax abatement in April 1991; (4) A 10 -year real property tax abatement in July 1993; (5) A five -year personal property tax abatement in July 1993; (6) A five -year personal property tax abatement in September 1994. HAWPDATA \C0MMSN\100298.M1N -5- South Bend Redevelopment Commission Regular Meeting - October 2, 1998 6. NEW BUSINESS (CONT.) a. continued.... Federal-Mogul South Bend, Inc. is in compliance with reporting requirements for each of the 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 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 and personal property tax abatement must first be approved by the South Bend Redevelopment Commission. The staff received information from Federal -Mogul South Bend, Inc. stating that a foundation permit was obtained prior to submission of the tax abatement petition. The staff investigated the site and visually confirmed that no concrete work or construction has begun. The staff also confirmed with the Building Department that no building permit has been issued. The staff reviewed the Tax Abatement Ordinance and finds that Federal-Mogul South Bend, Inc. still meets the qualifications for a six -year real property tax abatement under Industrial HAWPDATA \C0MMSN\100298.MIN -6- South Bend Redevelopment Commission Regular Meeting - October 2, 1998 6. NEW BUSINESS (CONT.) a. continued.... Development Citywide, because no building permit has been issued. Additionally, Federal -Mogul South Bend, Inc. meets the qualifications for a five -year personal property tax abatement under Tangible Personal Property Tax Abatement. Using the estimated project cost of $4,985,000, the taxes generated over the six -year period will be approximately $379,165. Taxes abated over the six -year period will be approximately $222,865. Taxes still to be paid with the abatement over the six -year period will be approximately $156,300. Nancy VanScoyk, an Economic Development Specialist, introduced Dick Monagle of Federal-Mogul South Bend, Inc. Mr. Monagle stated that Federal - Mogul South Bend, Inc. makes 12 million pistons a year for General Motors and Ford. Federal -Mogul South Bend, Inc.'s customers want more coatings put on the pistons, so Federal-Mogul South Bend, Inc. would add two different kinds of coatings to the pistons. Mr. Monagle stated that Federal -Mogul South Bend, Inc. initially had been shipping bare pistons to General Motors and Ford, and subsequently General Motors and Ford would add other parts to the pistons. However, General Motors and Ford plan to subcontract some of the HAWPDAMCOMMSM 100298.MIN -7- South Bend Redevelopment Commission Regular Meeting - October 2, 1998 6. NEW BUSINESS (CONT.) a. continued.... piston - assembling work to Federal -Mogul South Bend, Inc. Ms. Schwartz stated that she is voting against the real property tax abatement, because it is her opinion that obtaining a permit of any kind before filing the tax abatement petition constitutes violation of the real property tax abatement procedures. Mrs. Kolata stated that the Common Council has taken the position that a foundation permit is not the same as a building permit, and the Common Council has consistently followed that policy. Mr. Hunt asked Mrs. Kolata if there was a precedent with regard to a foundation permit being obtained before the filing of a tax abatement petition. Mrs. Kolata stated that there have been other tax abatement petitions which have been approved in which the foundation permit had been obtained prior to filing the tax abatement petition. Mr. Blake asked if Federal -Mogul South Bend, Inc. had any extenuating circumstances for obtaining the foundation permit before filing the tax abatement petition. Mr. Monagle stated that Federal -Mogul South Bend, Inc. needs to move quickly HAWPDATA \C0MMSN\100298.M1N -8- South Bend Redevelopment Commission Regular Meeting - October 2, 1998 6. NEW BUSINESS (CONT.) a. continued.... because Cadillac purchased some assembly equipment for the NorthStar engine, which Federal-Mogul South Bend, Inc. makes pistons for. Federal -Mogul South Bend, Inc. has taken over Cadillac's purchase order for the assembly equipment. Federal -Mogul South Bend, Inc. needs to construct the addition to its building in order to handle the new assembly equipment for the NorthStar Engine, which Federal-Mogul South Bend, Inc. makes for Cadillac, before it starts snowing. Mr. Blake made a motion to approve Resolution No. 1640 approving the real property tax abatement for Federal -Mogul South Bend, Inc. Mr. Hunt seconded the motion. The vote was 2 -2 with Ms. Schwartz and Mr. Donoho voting against the motion. Mr. Donoho stated that he has a problem with obtaining the foundation permit before filing the tax abatement petition. He also stated that the Commission has dealt, in the past, with the issue of obtaining a permit before filing a tax abatement petition, and the Commission has expressed its displeasure with it. Mr. Donoho stated that it has been his understanding, during the fifteen years he has served on the Commission, that any permit obtained before filing of a tax abatement permit was not permitted. Ms. Schwartz suggested that this resolution should be tabled until another HAWPDATATOMMSM100298.MIN -9- South Bend Redevelopment Commission Regular Meeting - October 2, 1998 6. NEW BUSINESS (CONT.) a. continued.... meeting of the Commission at which all members of the Commission could be present. The Commission agreed to hold a special meeting next week in order to give further consideration to this resolution. b. Commission approval requested for Resolution No. 1641 approving an application for personal property tax deduction for property at 3605 West Cleveland Road in the Airport Economic Development Area. (Federal - Mogul South Bend, Inc.) Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1641, an application for personal property tax deduction for property at 3605 West Cleveland Road in the Airport Economic Development Area. (Federal - Mogul South Bend, Inc.) c. Commission approval requested for Resolution No. 1642 determining 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. Mrs. Kolata stated that the resolution sets a public hearing for Friday, November 6, 1998, at 10:00 a.m., to appropriate HAWPDATATOMMSM100298.MIN -10- ITEM 6.A. WAS TABLED COMMISSION ADOPTED RESOLUTION NO. 1641 AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY AT 3605 WEST CLEVELAND ROAD IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (FEDERAL -MOGUL SOUTH BEND, INC.) South Bend Redevelopment Commission Regular Meeting - October 2, 1998 6. NEW BUSINESS (CONT.) c. continued.... $93,000 of Tax Increment funds in the Sample -Ewing Development Area. Upon a motion by Ms. Schwartz, seconded COMMISSION ADOPTED RESOLUTION NO. 1642 by Mr. Donoho and unanimously carried, DETERMINING TO PAY CERTAIN EXPENSES the Commission adopted Resolution INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN No. 1642 determining to pay certain OR SERVING THE SAMPLE -EWING ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 8) expenses incurred for local public FROM THE SAMPLE -EWING ALLOCATION AREA improvements in or serving the Sample- (SOUTH BEND ALLOCATION AREA NO. 8) SPECIAL Ewing Allocation Area (South Bend FUND Allocation Area No. 8) from the Sample - Ewing Allocation Area (South Bend Allocation Area No. 8) Special Fund. d. Commission approval requested for proposal from The Abonmarche Group for professional services in the Sample - Ewing Development Area. Mrs. Kolata stated that a proposal was received from The Abonmarche Group to provide construction specs for paving alleys north of Broadway in the Sample - Ewing Development Area, relative to the new houses which have been constructed on Broadway Street. The houses have garages with driveway entrances and exits off the alley to the north, which is also the alley which separates the new Ivy Tech building from the newly constructed houses. The Abonmarche Group proposes to: (1) Prepare preliminary and final engineering plans and specifications for the reconstruction of the east/west alley HAWPDATATOMMSM100298.MIN -11- South Bend Redevelopment Commission Regular Meeting - October 2, 1998 6. NEW BUSINESS (CONT.) d. continued.... north of Broadway Street, lying between Fellows and Michigan Streets, along with two north/south alleys extending between Broadway Street and the said east/west alley to provide for proper drainage and a durable surface; (2) Prepare bid documentation and advertisement for solicitation to contractors; (3) Prepare construction cost estimates for bid projections, budgeting and post -bid comparison for a fee not -to- exceed $4,4000. Upon a motion by Mr. Donoho, seconded COMMISSION ACCEPTED THE PROPOSAL FROM by Mr. Blake and unanimously carried, the THE ABONMARCHE GROUP IN THE AMOUNT NOT - Commission accepted the proposal from TO- EXCEED $4,400 FOR PROFESSIONAL SERVICES The Abonmarche Group in the amount IN THE SAMPLE -EWING DEVELOPMENT AREA not -to- exceed $4,400 for professional services in the Sample -Ewing Development Area. e. Staff report on disposition of property in the Sample -Ewing Development Area. Mrs. Kolata stated that there was no staff THERE WAS NO STAFF REPORT report. 7. PROGRESS REPORTS Mrs. Kolata reported that Michele Bush, an Economic Development Specialist, started working for the Department of Redevelopment on September 28, 1998. She is working on the Commercial Corridor program. HAWPDATA \C0MMSN\100298.M1N -12- South Bend Redevelopment Commission Regular Meeting - October 2, 1998 7. PROGRESS REPORTS (CONT.) Mrs. Kolata also reported that a closing with One Blackthorn, LLC took place on September 21, 1998. One Blackthorn, LLC is developing a 10,000 sf building in the Blackthorn Corporate Park and construction has begun. She also reported that more than half of the concrete walls on the Associates, Inc.'s building are up. Mrs. Kolata stated that Holy Cross will begin moving into its building next week. Holy Cross hopes to be completely in the building by the end of October. Mrs. Kolata reported that Mayflower Court, which has been extended to the Holy Cross building, has been renamed to Moreau Court through a replat. She also reported that five, large pieces of limestone have been installed at the corner of Moreau Court and Nimtz Parkway, which will be the Blackthorn Corporate Park entrance sign. Mrs. Kolata reported that new, single - family housing construction has begun on Washington Street. Two houses are under construction and the construction of two more houses will begin next week. 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is scheduled for October 16, 1998, at 10:00 a. m. HAWPDATA \C0MMSN\100298.M1N -13- South Bend Redevelopment Commission Regular Meeting - October 2, 1998 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Donoho made a motion that the meeting be adjourned. Ms. Schwartz seconded the motion and th ng was; ed at 10:25 a.m. RoAdWIMm r R 6d it Ann E: Kolata, Director HAWPDATA \C0MMSN\100298.MIN -14-