HomeMy WebLinkAboutRM 11-20-98h
SOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
November 20, 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. Bruneel
Redevelopment Staff: Mrs. Ann E. Kolata, Director
Mrs. Vangelean Urbanski, Recording Secretary
Mr. Owen Rock, Economic Development Specialist
Ms. Michele Bush, Economic Development Specialist
Mr. Michael Giulioni, Economic Development Specialist
Business Assistance:
Ms. Nancy Van Scoyk, Economic Development Specialist
Others: Mr. Rick Newman, Crystal Mountain, Inc.
Mr. Jack Roberts, Madison Center
Mr. Dean Bergeman, Mathews, Purucker, Annella
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 November 20,
1998.
HAWPDATATOMMSM 112098.MIN -I-
South Bend Redevelopment Commission
Regular Meeting - November 20, 1998
2. APPROVAL OF MINUTES (CONT.)
a. continued....
Upon a motion by Mr. Faccenda, seconded
by Mr. Donoho and unanimously carried,
the Commission approved the Minutes of
the Regular Meeting of November 4, 1998.
3. APPROVAL OF CLAIMS
COMMISSION APPROVED THE MINUTES OF THE
REGULAR MEETING OF NOVEMBER 4, 1998
Redevelopment Commission Claims submitted November 20, 1998 for approval.
212 CDBG COMMUNITY DEVELOPMENT
Calendars
American Electric Power
NBD Bank
King Communications Groups, Inc.
Ameritech
St. Joseph County Building Department
South Bend Water Works
Business Districts, Inc.
Billie's Lunch
South Bend Tribune
CB Richard Ellis /Sturges Bradley
NIPSCO
American Electric Power
324 FUND
Cole Associates Inc.
Owner's Association at Blackthorn, Inc.
Walsh & Kelly, Inc.
Cole Associates, Inc.
ESRI Desktop Sales Center
Sitescapes Inc.
Reith Riley
J.A. Wagner Constructions, Inc.
H.S. ALTMAN Inc.
Walsh & Kelly
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$22.60
$37.26
$264.18
$698.00
$26.86
$561.66
$16.67
$1,185.30
$21.15
$14.42
$612.64
$11.74
$25.68
$4,450.00
$6,690.63
$56,823.94
$464.94
$2,950.00
$1,483.28
$3,814.00
$2,500.00
$725.09
$16,483.36
South Bend Redevelopment Commission
Regular Meeting - November 20, 1998
3. APPROVAL OF CLAIMS (CONT.)
414 SAMPLE -EWING FUND
Willia M. Sanchez/Code Enforcement $600.00
Jeffrey A. Name & Dawn Name $12,696.94
St. Joseph County Treasurer $845.23
St. Joseph Circuit Court $1,000.00
St. Joseph County Treasurer $494.34
W13 610 UV19 0X11ill21;01102k I
Delta Star Electric, Inc.
$228.50
Niezgodski Plumbing
$17,799.98
Wrightway Landscape
$600.00
Grauvogel & Associates
$320.00
Grauvogel & Associates
$1,880.00
William Weskey Woodward, II & Christine Woodward
$1,995.00
American Electric Power
$37.53
St. Joseph County Treasurer
$5.00
St. Joseph County Treasurer
$640.72
Roy Galloway
$10,320.28
Roy Galloway
$389.00
Staton Blount
$425.00
Staton Blount
$425.00
Newman & Altman
$1,000,000.00
420 SBCDA GENERAL ACCOUNT
All -Phase $1,952.50
619 BLACKTHORN GOLF COURSE
Meadowbrook Golf Group, Inc. $6,450.00
Mrs. Kolata asked permission to add one
Claim to the Claims list. There was no
objection and the Claim to Newman and
Altman was added.
Upon a motion by Mr. Faccenda, seconded by
Mr. Donoho and carried, the Commission
approved the Claims submitted November 20,
1998, as amended, and ordered the checks to
HAWPDATATOMMSMI 12098.MIN -3-
COMMISSION APPROVED THE CLAIMS SUBMITTED
NOVEMBER 20, 1998, AS AMENDED, AND ORDERED
THE CHECKS TO BE RELEASED
South Bend Redevelopment Commission
Regular Meeting - November 20, 1998
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 item 6.j.
to the agenda. There was no objection and
item 6.j. was added to the agenda.
a. Commission approval requested for
Resolution No. 1649 approving an
application for real property tax
deduction for property at 4044 William
Richardson Court in the Airport
Economic Development Area. (Rick E.
Newman (Crystal Mountain, Inc.))
The following staff report was presented to
the Commission for its consideration.
Rick E. Newman (Crystal Mountain, Inc.)
is a processor of drinking, distilled and
flavored water. The project calls for an
addition to the existing 13,500 sq ft
warehouse /production building with
loading facilities in the Toll Road
Industrial Park. These capital
improvements will allow the company to
achieve future growth in sales and
maintain its existing quality. The
company has future plans to expand the
parking lot to accommodate deliveries and
HAWPDATATOMMSNU 12098.MIN -4-
THERE WERE NO COMMUNICATIONS
THERE WAS NO OLD BUSINESS
ITEM 6.J. WAS ADDED TO THE AGENDA
South Bend Redevelopment Commission
Regular Meeting - November 20, 1998
6. NEW BUSINESS (CONT.)
a. continued....
employee parking and has the capability to
expand in the future. The estimated cost
of the building addition is $394,540.
Per the petition, it is estimated that this
project will create two new, permanent
jobs within the first year, representing a
new annual payroll of $32,000 and will
maintain 25 existing permanent, full -time
jobs with an annual payroll of $595,000.
A review of the tax abatements previously
granted, finds that Crystal Mountain, Inc.
has been granted a previous tax abatement.
Crystal Mountain, Inc. is in compliance
with the reporting requirements for the
previous 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 Crystal Mountain, Inc. meets the
qualifications for a three -year real property
tax abatement under Industrial
Development City -Wide.
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South Bend Redevelopment Commission
Regular Meeting - November 20, 1998
6. NEW BUSINESS (CONT.)
a. continued....
Using the estimated project cost of
$394,540, the taxes generated over the
three -year period will be approximately
$57,537. Taxes abated over the three -year
period will be approximately $38,358.
Taxes still paid with the abatement over
the three -year period will be
approximately $19,179.
Upon a motion by Mr. Donoho, seconded
by Mr. Faccenda and unanimously carried,
the Commission adopted Resolution
No. 1649 approving an application for real
property tax deduction for property at
4044 William Richardson Court. (Rick E.
Newman (Crystal Mountain, Inc.))
b. Commission approval requested for
Resolution No. 1650 of the South Bend
Redevelopment Commission approving
the Execution of an Addendum to the
Lease dated as of November 16, 1998,
Between the South Bend
Redevelopment Commission and the
South Bend Redevelopment Authority
for the Blackthorn Golf Course Project.
Mrs. Kolata stated that the Execution of
the Addendum to the Lease dated as of
November 16, 1998, is related to the
Blackthorn Golf Course Bond refinancing.
On November 10, 1998, there was a bond
sale to refinance the Blackthorn Golf
Course Bond issued in 1992. The savings
which will be achieved from the Bond
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COMMISSION ADOPTED RESOLUTION NO. 1649
APPROVING AN APPLICATION FOR REAL
PROPERTY TAX DEDUCTION FOR PROPERTY AT
4044 WILLIAM RICHARDSON COURT (RICK E.
NEWMAN (CRYSTAL MOUNTAIN, INC.))
South Bend Redevelopment Commission
Regular Meeting - November 20, 1998
6. NEW BUSINESS (CONT.)
b. continued....
issue is $471,727. The net interest cost on
the Bond is 4.703 %.
There were three bidders at the Bond sale:
City Securities Incorporated, Prudential
Securities and NatCity Investments. The
Bond closing will be Tuesday, November
24, 1998. The successful bidder was City
Securities, Incorporated.
Resolution No. 1650 establishes the fund
which the proceeds from the Bond sale
will be deposited into and amends the
Lease to reduce the Lease rental payments.
Upon a motion by Ms. Schwartz, seconded
by Mr. Faccenda and unanimously carried,
the Commission adopted Resolution
No. 1650 of the South Bend
Redevelopment Commission approving
the Execution of an Addendum to the
Lease dated as of November 16, 1998,
between the South Bend Redevelopment
Commission and the South Bend
Redevelopment Authority for the
Blackthorn Golf Course Project.
c. Commission approval requested for
proposals for appraisal services in the
Airport Economic Development Area.
Mrs. Kolata stated that two proposals were
needed and received.
HAWPDATA \C0MMSN\112098.MIN -7-
COMMISSION ADOPTED RESOLUTION NO. 1650 OF
THE SOUTH BEND REDEVELOPMENT COMMISSION
APPROVING THE EXECUTION OF AN ADDENDUM
TO THE LEASE DATED AS OF NOVEMBER 16, 1998,
BETWEEN THE SOUTH BEND REDEVELOPMENT
COMMISSION AND THE SOUTH BEND
REDEVELOPMENT AUTHORITY FOR THE
BLACKTHORN GOLF COURSE PROJECT
South Bend Redevelopment Commission
Regular Meeting - November 20, 1998
6. NEW BUSINESS (CONT.)
c. continued....
Mrs. Kolata stated that 19 acres of land,
owned by Dale Parks, need to be
appraised. The land is located on the west
side of the US 31 Bypass and Brick Road.
She also stated that the Commission
purchased 75 acres of industrial land in the
Airport Economic Development Area in
1997 from Mr. Parks. At that time, the
Commission agreed to purchase the
additional 19 acres of land once the land
was annexed into the City. The 19 acres
of land has now been annexed into the
City. Redevelopment anticipates making
the 19 acres of land available for
residential development.
The first proposal received was from Rick
Pitts at a cost not -to- exceed $2,000.
The second proposal received was from
Douglas Carpenter at a cost not -to- exceed
$500.
The staff recommends accepting both
proposals.
Upon a motion by Ms. Schwartz, seconded
by Mr. Donoho and unanimously carried,
the Commission accepted the proposals
from Rick Pitts in the amount of $2,000
and Douglas Carpenter in the amount of
$500 for appraisal services in the Airport
Economic Development Area.
HAWPDATA \COMMSN\ 112098.MIN -8-
COMMISSION ACCEPTED THE PROPOSALS FROM
RICK PITTS IN THE AMOUNT OF $2,000 AND
DOUGLAS CARPENTER IN THE AMOUNT OF $500
FOR APPRAISAL SERVICES IN THE AIRPORT
ECONOMIC DEVELOPMENT AREA
South Bend Redevelopment Commission
Regular Meeting - November 20, 1998
6. NEW BUSINESS (CONT.)
d. Commission approval requested for
proposal for professional services in the
Airport Economic Development Area.
Mrs. Kolata stated that Lots 3 and 4 in the
Toll Road Industrial Park need to be
replatted and a Phase I Environmental
Assessment needs to be conducted. She
also stated that this work is relative to the
expansion of Crystal Mountain, Inc.'s
currently existing building in the Toll
Road Industrial Park.
She also stated that two proposals were
received.
The first proposal received was from
Wightman Petrie, Inc. It proposes to
replat Lots 3 and 4 and conduct a Phase I
Environmental Assessment for a fee not-
to- exceed $2,050.
The second proposal received was from
The Abonmarche Group. It proposes to
replat Lots 3 and 4 and conduct a Phase I
Environmental Assessment for a fee of
$3,100 to $3,400.
The staff recommends accepting the
proposal from Wightman Petrie, Inc.
Upon a motion by Mr. Donoho, seconded
by Mr. Faccenda and unanimously carried,
the Commission accepted the proposal
from Wightman Petrie, Inc. in the amount
of $2,050 for replat of Lots 3 and 4 and a
Phase I Environmental Assessment in the
Airport Economic Development Area.
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COMMISSION ACCEPTED THE PROPOSAL FROM
WIGHTMAN PETRIE, INC. IN THE AMOUNT OF
$2,050 FOR REPLAT OF LOTS 3 AND 4 AND A PHASE
I ENVIRONMENTAL ASSESSMENT IN THE AIRPORT
ECONOMIC DEVELOPMENT AREA
South Bend Redevelopment Commission
Regular Meeting - November 20, 1998
6. NEW BUSINESS (CONT.)
e. Staff report on acquisition of property
in the Sample -Ewing Development
Area.
Mrs. Kolata stated that one counter offer
was received from John Graber and
Conrad Hochstetler for the property at 113
Broadway St. The original purchase offer
was in the amount of $23,000. The
counter offer is in the amount of $29,000.
The staff recommends accepting the
counter offer.
Upon a motion by Mr. Faccenda, seconded
by Mr. Donoho and unanimously carried,
the Commission accepted the counter offer
in the amount of $29,000 from John
Graber and Conrad Hochstetler for the
property at 113 Broadway St. in the
Sample -Ewing Development Area.
L Presentation by Madison Center.
Jack Roberts of Madison Center, and Dean
Bergeman of Mathews, Purucker and
Annella presented a drawing of the
Madison Center project to the Commission
for its consideration.
Mr. Roberts stated that Madison Center
has been on the East Race for the past 20
years. Madison Center treats
approximately twelve thousand patients a
year and it employs over seven hundred
people. He also stated that Madison
Center has grown considerably and needs
more space to develop its new facilities.
HAWPDATATOMMSM 112098.MIN -10-
COMMISSION ACCEPTED THE COUNTER OFFER IN
THE AMOUNT OF $29,000 FROM JOHN GRABER AND
CONRAD HOCHSTETLER FOR THE PROPERTY AT
113 BROADWAY ST. IN THE SAMPLE -EWING
DEVELOPMENT AREA
South Bend Redevelopment Commission
Regular Meeting - November 20, 1998
6. NEW BUSINESS (CONT.)
L continued....
Mr. Roberts stated that Madison Center
owns a three -acre property to the east of its
current facilities on Niles Avenue. There
is an existing building on the property and
the Addictions Program/Quiet Care is in
that building. There is also a recreation
field on the three -acre property for patients
in the Madison Center for Children facility
on Niles Avenue.
Madison Center will develop a new, $3
million 50,000 sf Addictions/Mental
Health facility to the north of the Madison
Center building.
He also stated that Madison Center
purchased most of its land in 1977. It
entered into a Lease agreement in 1981
with the City of South Bend to develop the
East Race waterway along the river behind
Madison Center's property. The 60,000
sf Madison Hospital building, which is
attached to the Madison Center building,
was opened in 1992.
The 50,000 sf Addictions/Mental Health
building will have a brick exterior and lots
of windows. The building will have a
steep roof pitch of 8'x 12'. There will be
16 beds for the patients who will treated in
the new facility. There will be a staff and
service entrance on the northwest side of
the new building.
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South Bend Redevelopment Commission
Regular Meeting - November 20, 1998
6. NEW BUSINESS (CONT.)
f. continued....
Madison Center also plans to construct a
park east of the Madison Hospital building
at the corner of Madison and Niles Streets.
The park can be used by Madison Center's
patients and the public.
Madison Center anticipates using the
parking spaces along Niles Avenue for its
employees. However, the parking spaces
will also be available for public parking.
The City has plans to extend the riverwalk
system farther north up to Corby Avenue.
Madison Center also plans to do some
landscaping on its property.
Mr. Roberts stated that Madison Center
has entered into an Agreement with John
Friedline to purchase the land to the north
of the existing Madison Center for
Children building.
He also stated that Madison Center's main
entrance would be on Niles Avenue once
its entire project is completed. There will
be an additional entrance on Niles Avenue
to the new, Addiction/Mental Health
facility. A walkway will be constructed
on the property. The walkway will start
from Madison Street, run through Madison
Center's entire property and end on the
north side of the existing Madison Center
for Children building.
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South Bend Redevelopment Commission
Regular Meeting - November 20, 1998
6. NEW BUSINESS (CONT.)
L continued....
Madison Center anticipates starting
construction as soon as possible and
completing its project possibly by July
1999.
Mrs. Kolata asked Mr. Roberts if the
public will be allowed to use Madison
Center's parking lots on the weekends and
during evenings hours. Mr. Roberts stated
that is a safe assumption.
Mrs. Kolata commented that the on- street
parking along Niles Avenue would be
better used by having it available for turn-
over parking. She stated that Madison
Center should encourage its employees to
park within its parking lot.
Mrs. Kolata asked about the land to the
north of the Children's Services building
and whether Madison Cener would be
willing to work with the City on extension
of the East Bank Trail. The City currently
has plans to extend the riverbank walkway
from its current location by East Bank Day
Care up to vacated Hagerty Street.
Mr. Roberts said that Madison Center
would work with the City to determine a
location for the walkway north of the
Children's Services building. He also said
that they would remove the debris that had
been piled up in that area once the land
purchase was complete.
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South Bend Redevelopment Commission
Regular Meeting - November 20, 1998
6. NEW BUSINESS (CONT.)
g. Commission approval requested for
Loan and Grant in connection with the
Affordable Loan Program for property
at 1714 S. Warren. (Anna Kovacs)
Mrs. Kolata stated that the loan to Anna
Kovacs is in the amount of $11,150 at 4%
interest for 15 years with monthly
payments of $82.48. The grant is in the
amount of $7,302.68.
Upon a motion by Mr. Faccenda, seconded
by Ms. Schwartz and unanimously carried,
the Commission approved the Loan and
Grant in connection with the Affordable
Loan Program for property at 1714 S.
Warren. (Anna Kovacs)
h. Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property at 829 E. Miner. (Paul W. and
Mary Jo Quinn)
Mrs. Kolata stated that the Certificate of
Waiver forgives $453.16 as of
September 11, 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 829 E.
Miner. (Paul W. and Mary Jo Quinn)
HAWPDATA \C0MMSN\112098.MIN -14-
COMMISSION APPROVED THE LOAN AND GRANT
IN CONNECTION WITH THE AFFORDABLE LOAN
PROGRAM FOR PROPERTY AT 1714 S. WARREN
(ANNA KOVACS)
COMMISSION APPROVED THE CERTIFICATE OF
WAIVER IN CONNECTION WITH THE RENTAL
REHAB LOAN PROGRAM FOR PROPERTY AT 829 E.
MINER. (PAUL W. AND MARY JO QUINN)
South Bend Redevelopment Commission
Regular Meeting - November 20, 1998
6. NEW BUSINESS (CONT.)
i. Commission approval requested for
Resolution No. 1651 of the South Bend
Redevelopment Commission approving
the transfer of real property to the City
of South Bend, Indiana.
Anne Bruneel stated that Redevelopment
received titles to several properties, some
time ago, from several property owners.
While the transfer of titles were being
finalized, one title still needed to be
transferred to the Board of Public Works
and subsequently to South Bend Heritage.
Resolution No. 1651 authorizes the transfer
of that title to the Board of Public Works.
Upon a motion by Ms. Schwartz, seconded
by Mr. Donoho and unanimously carried,
the Commission adopted Resolution
No. 1651 approving the transfer of real
property to the City of South Bend,
Indiana.
j. Commission approval requested for
proposal for professional services in the
Airport Economic Development Area.
Mrs. Kolata stated that three proposals were
received.
The first proposal received was from
Underground Services for installation of
sewer lines and water mains at 2505 Nimtz
Parkway. The cost for this work is not -to-
exceed $7,470.
HAWPDATA\C0MMSN\112098.MIN -15-
COMMISSION ADOPTED RESOLUTION NO. 1651
APPROVING THE TRANSFER OF REAL PROPERTY
TO THE CITY OF SOUTH BEND, INDIANA
South Bend Redevelopment Commission
Regular Meeting - November 20, 1998
6. NEW BUSINESS (CONT.)
j. continued....
The second proposal received was from
HRP Construction, Inc. for installation of
sewer lines and water mains at 2505 Nimtz
Parkway. The cost for this work is not -to-
exceed $16,400.
The third proposal received was from
Small, Inc. for installation of sewer lines
and water mains at 2505 Nimtz Parkway.
The cost for this work is not -to- exceed
$13;500.
The staff recommends accepting the
proposal from Underground Services.
IcUpon a motion by Mr. Faccenda, seconded
by Ms. Schwartz and unanimously carried,
the Commission adopted Resolution
No. 1651 of the South Bend
Redevelopment Commission approving the
transfer of real property to the City of
South Bend, Indiana.
7. PROGRESS REPORTS
Mrs. Kolata reported that the wine bar, The
Vine, behind the Chocolate Cafe opened earlier
this week.
She also reported that the F. Jay Nimtz Day
presentation is scheduled for Tuesday,
December 1, 1998, at 4:00 p.m., at the Colfax
Cultural Center
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COMMISSION ADOPTED RESOLUTION NO. 1651 OF
THE SOUTH BEND REDEVELOPMENT
COMMISSION APPROVING THE TRANSFER OF
REAL PROPERTY TO THE CITY OF SOUTH BEND,
INDIANA
South Bend Redevelopment Commission
Regular Meeting - November 20, 1998
8. NEXT COMMISSION MEETING:
The next Regular Meeting of the
Redevelopment Commission is scheduled for
December 4, 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. Ms. Schwartz seconded the
motion and eting was adjourned at 10:50
a.m. ' //i
Robert W. Hunt, President
ADJOURNMENT
Ann E. Kolata, Director
HAWPDATA \C0MMSN\112098.MIN -17-