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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 H: \WPDATA \COMMSN\112098.MIN -2- $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. H: \WPDATA \COMMSN\112098.MIN -5- 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 H: \WPDATA \COMMSN\112098.MIN -6- 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. H: \WPDATA \COMMSN\112098.MIN -9- 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. H: \WPDATA \COMMSN\112098.MIN _11- 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. H: \WPDATA \COMMSN\ 112098.MIN -12- 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. H: \WPDATA \COMMSN\ 112098.MIN -13- 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 H: \WPDATA \COMMSN\ 112098.MM -16- 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-