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Home My WebLink AboutRM 10-16-98- It SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING October 16, 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 Member Absent: Mr. Hardie Blake Legal Counsel: Ms. Anne E. Brunel Redevelopment Staff: Mrs. Ann E. Kolata, Director Mrs. Vangelean Urbanski, Recording Secretary Mr. Owen Rock, Economic Development Specialist Bureau of Housing: Ms. Mary Beth Thompson Media: Mr. Terry Bland, South Bend Tribune Others: Mr. John Quickstad, Meadowbrook Golf Group, Inc. Mr. Jack Quimby, Meadowbrook Golf Group, Inc. Mr. Mike Rippey, Meadowbrook Golf Group, 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 October 2, 1998. Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Minutes of the Regular Meeting of October 2, 1998. HAWPDATA \C0MMSN\101698.MIN -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF OCTOBER 2, 1998 South Bend Redevelopment Commission Regular Meeting - October 16, 1998 b. Approval of Minutes of the Special Meeting of October 9, 1998. Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Minutes of the Special Meeting of October 9, 1998. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE SPECIAL MEETING OF OCTOBER 9, 1998 Redevelopment Commission Claims submitted October 16, 1998 for approval. 212 CDBG COMMUNITY DEVELOPMENT Alltel Center City Associates East Race Printing & Graphics East Race Printing & Graphics Billie's Catering Inc. Northern Indiana Public Service Company Plastimatic Arts Corp. Chamber of Commerce York Title & Escrow, Inc. Ameritech Division Of Engineering 324 FUND Reith Riley Construction Co., Inc. J. F. New & Associates, Inc. Metropolitan Title 414 SAMPLE -EWING FUND St. Joseph County Clerk American Electric Power Cole Associates Inc. Cole Associates Inc. Cole Associates Inc. Thomas General Construction HAWPDATA \C0MMSN\101698.MIN -2- $94.35 $365.00 $25.80 $25.80 $140.60 $14.20 $12.75 $65.25 $255.00 $26.86 $198.90 $130,747.53 $4,450.00 $340.00 $4,500.00 $5.42 $7,650.00 $2,000.00 $2,000.00 $690.00 South Bend Redevelopment Commission Regular Meeting - October 16, 1998 3. APPROVAL OF CLAIMS (CONT.) 420 SBCDA GENERAL ACCOUNT American Electric Power $33.82 NIPSCO $6.06 NIPSCO $6.76 South Bend Water Works $578.90 CB/Robert Bradley Associates, LLC $174.35 VFP Fire Systems $510.00 Upon a motion by Mr. Donoho, seconded COMMISSION APPROVED THE CLAIMS SUBMITTED by Mr. Faccenda and unanimously carried, the OCTOBER 16, 1998, AND ORDERED THE CHECKS TO Commission approved the Claims submitted BE RELEASED October 16, 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. Mrs. Kolata asked permission to add item 6. f. to the agenda. There was no objection and item 6.f. was added to the agenda. 6. NEW BUSINESS a. Commission approval requested for the Blackthorn Golf Course Operations and Management Agreement with Meadowbrook Golf Group, Inc. Mrs. Kolata stated that the Management Agreement has been discussed with Mike Rippey of Meadowbrook Golf Group, Inc. The Management Agreement is substantially in the form of the previous Management Agreement with C; HAWPDATATOMMSM101698.MIN -3- THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS ITEM 6.F. WAS ADDED TO THE AGENDA South Bend Redevelopment Commission Regular Meeting - October 16, 1998 6. NEW BUSINESS (CONT.) a. continued.... Meadowbrook Golf Group, Inc. The new Management Agreement would provide a five -year term to begin January 1, 1999. Meadowbrook Golf Group, Inc.'s fee for management and operation of the Blackthorn Golf Course is $7,000 a month for the entire five -year term of the Operations and Management Agreement. In addition, there is an incentive fee which is based on Blackthorn Golf Course's gross revenues. If the gross revenues exceed $1.8 million in any given year of the five -year term, Meadowbrook Golf Group, Inc. will earn 10 percent of the gross revenues in excess of the $1.8 million. The incentive fee would not exceed the fixed fee of $7,000 a month. She also stated that the Operations and Management Agreement was presented to the Joint Advisory Committee on Monday, October 12, 1998, and the Joint Advisory Committee recommended that the Operations and Management Agreement be approved. Mrs. Kolata stated that since the Joint Advisory Committee meeting, Mr. Rippey suggested a couple of changes to the Agreement, and they have not yet been reviewed by our attorney. Mr. Hunt stated that at the Joint Advisory Committee meeting on Monday, October 12, 1998, the Committee recommended approval of the Agreement, subject to HAWPDATATOMMSM101698.MIN -4- South Bend Redevelopment Commission Regular Meeting - October 16, 1998 6. NEW BUSINESS (CONT.) a. continued.... receiving a final Agreement from Meadowbrook Golf Group, Inc. and satisfactory review of the Agreement. Mr. Hunt stated that Anne Bruneel, Redevelopment's Attorney, will need time to review the suggested changes to the Agreement. Mrs. Bruneel stated that the Agreement sent to Meadowbrook was reviewed by Baker & Daniels for form and legality, as to concerns related to the outstanding tax exempt Blackthorn Golf Course Bonds and the refinancing of these Bonds, which is currently underway. She also stated that based on that review, Baker & Daniels recommended a few changes to the Agreement, which are relatively minor. These changes are being incorporated into the Agreement. Ms. Schwartz stated that in view of the ITEM 6.A. WAS TABLED fact that there are some substantive issues which need to be fine tuned and addressed, she requests tabling item 6.a. until the Commission can receive the fully revised Agreement. She also stated that she would like to know what the Joint Advisory Committee recommendations are regarding the changes to the Agreement which have been requested. There was no objection and item 6.a. was tabled until a later meeting. C; HAWPDATA \C0MMSN\101698.MIN -5- South Bend Redevelopment Commission Regular Meeting - October 16, 1998 6. NEW BUSINESS (CONT.) a. continued.... Mrs. Kolata stated that Redevelopment and the Joint Advisory Committee have been very pleased with Meadowbrook Golf Group, Inc.'s operations and management performance in the past, relative to Blackthorn Golf Course. b. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property at 521 E. Haney. (JoAnne Haynes) Mrs. Kolata stated that the loan to JoAnne Haynes is in the amount of $8,950 at 2% interest for 15 years with monthly payments of $67.41. The grant is in the amount of $8,772.50 Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property at 521 E. Haney. (JoAnne Haynes) c. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property at 1605 S. Kemble St. (Velma Boskey) Mrs. Kolata stated that the loan to Velma Boskey is in the amount of $6,950 at 0% interest for 10 years with monthly payments of $57.92. The grant is in the amount of $6,765. HAWPDATATOMMSM101698.MIN -6- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY AT 521 E. HANEY. (JOANNE HAYNES) South Bend Redevelopment Commission Regular Meeting - October 16, 1998 6. NEW BUSINESS (CONT.) d. continued.... income is very minimal. However, when the home is sold, the applicant is required to satisfy the "due upon sale" lien on the home. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property at 668 W. LaPorte. (David Cowger) e. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property at 826 N. Diamond. (Alfonso Cardenas) Mrs. Kolata stated that the Certificate of Waiver forgives $750 as of February 15, 1998. Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property at 826 N. Diamond. (Alfonso Cardenas) f. Commission approval requested for Resolution No. 1644 of the South Bend Redevelopment Commission determining to pay certain expenses incurred for local public improvements in or serving the Sample -Ewing Allocation Area (South Bend Allocation HAWPDATA \C0MMSN\101698.MIN -8- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY AT 668 W. LAPORTE (DAVID COWGER) COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY AT 826 N. DIAMOND (ALFONSO CARDENAS) South Bend Redevelopment Commission Regular Meeting - October 16, 1998 6. NEW BUSINESS (CONT.) c. continued.... Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property at 1605 S. Kemble St. (Velma Boskey) d. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property at 668 W. LaPorte. (David Cowger) Mrs. Kolata stated that the loan to David Cowger is in the amount of $2,950 at 0% with no monthly payments. The grant is in the amount of $7,500. She also stated that there is no repayment provision in the loan document, other than the "due upon sale" lien which is placed on the property. Mary Beth Thompson, of the Bureau of Housing, stated that Mr. Cowger has extremely low income. As a result of the latter, Mr. Cowger qualifies for a repair grant through the Bureau of Housing. The repair grant covers only extremely poor, basic items in the house. There is a limit of $7,500 on the repair grant. If the repairs exceed the repair grant's limit, then the loan applicant is offered a "due upon sale" lien for the amount over $7,500. The loan and grant applicant is not required to pay a monthly payment towards the amount of the loan, since the applicant's HAWPDATATOMMSM101698.MIN -7- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY AT 1605 S. KEMBLE ST. (VELMA BOSKEY) South Bend Redevelopment Commission Regular Meeting - October 16, 1998 6. NEW BUSINESS (CONT.) L continued.... Area No. 8) from the Sample -Ewing Allocation Area (South Bend Allocation Area No. 8) Special Fund. Mrs. Kolata stated that the resolution states the Commission's intent to appropriate $1,000,000 in the Sample - Ewing Development Area and sets a Public Hearing for November 6, 1998. The $1,000,000 proceeds is from the sale of land to the County for the site where the new county jail will be constructed. Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission adopted Resolution No. 1644 of the South Bend Redevelopment Commission 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. 7. PROGRESS REPORTS Mrs. Kolata reported that a groundbreaking for the new jail was held on October 9, 1998. She also reported that the Blackthorn Golf Course Bonds will be refinanced, and the Bond sale is tentatively scheduled for November 9, 1998. HAWPDATA \C0MMSN\101698.MIN -9- COMMISSION ADOPTED RESOLUTION NO. 1644 OF THE SOUTH BEND REDEVELOPMENT COMMISSION 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 South Bend Redevelopment Commission Regular Meeting - October 16, 1998 7. PROGRESS REPORTS (CONT.) Mrs. Kolata reported that Business Districts Incorporated had a meeting on Wednesday, October 14, 1998, relative to South Bend's downtown area. They will come back in early December to present a preliminary strategic action plan regarding the downtown area. They will also meet on October 28, 1998, at 7:00 p.m. at Epworth Church to discuss a preliminary strategic action plan for Lincolnway West. 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is scheduled for November 6, 1998, at 10:00 a.m. 001 01"111017110Q11 There being no further business to come before the Redevelopment Commission, Mr. Donoho made a motion that the meeting be adjourned. Mr. Faccenda seconded the motion and the meeting was adjourned at 1 Robert W. Hunt, President C; HAW PDATA \COMMSN\ 101698.M1N Ann E. Kolata, Director -10-