HomeMy WebLinkAboutRM 12-18-98t
SOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
December 18, 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: Mrs. Anne E. Bruneel
Redevelopment Staff: Mrs. Ann E. Kolata, Director
Mrs. Vangelean Urbanski, Recording Secretary
Mr. Owen Rock, Economic Development Specialist
Mrs. Michele Bush, Economic Development Specialist
Mr. Michael Giulioni, Economic Development Specialist
Bureau of Housing:
Ms. Mary Beth Thompson, Assistant Director
Others: Mr. Jack Quimby, Blackthorn Golf Course
Mr. John Quickstad, Blackthorn Golf Course
Mr. Steve Ellison, Stone Group
Ms. Sheral Litell, CB Richard Ellis /Sturges Bradley
Mr. Joe Zaleski, Meadowbrook Golf Group
Mr. Tim Heinz, Eagle Freight
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 December 4,
1998.
HAWPDATATOMMSM 121898.MIN
-1-
I
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
2. APPROVAL OF MINUTES (CONT.)
a. continued....
Upon a motion by Ms. Schwartz, seconded
by Mr. Donoho and unanimously carried,
the Commission approved the Minutes of
the Regular Meeting of December 4, 1998.
3. APPROVAL OF CLAIMS
COMMISSION APPROVED THE MINUTES OF THE
REGULAR MEETING OF DECEMBER 4, 1998
Redevelopment Commission Claims submitted December 18, 1998 for approval.
212 CDBG COMMUNITY DEVELOPMENT
Insty -Prints
Engineering Department
CB/Richard Ellis /Sturges Bradley
City of South Bend
Alltel
General Fund: Telephone
NBD Bank
Stoll Printing & Design
The Print Shop
Ameritech
Tri- County News
South Bend Tribune
West Central Business Group
324 FUND
TEC
South Bend Water Works
Underground Services
Reith Riley
R.E. Pitts & Associates
Stone Real Estate Group
South Bend Tribune
HAW PDATATOMMSM 121898.MIN
-2-
$203.60
$18.00
$34.26
$17.02
$69.85
$235.34
$11.79
$6.00
$11.52
$26.86
$25.13
$23.12
$50.00
$4,252.50
$38,484.04
$7,470.00
$76,355.08
$2,000.00
$4,675.00
$162.40
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
3. APPROVAL OF CLAIMS (CONT.)
414 SAMPLE -EWING FUND
NBD Bank $13.34
Thomas General Construction $735.00
NIPSCO $21.36
American Electric Power $32.98
Engineering Dept. $1,067.80
NIPSCO $291.99
420 SBCDA GENERAL ACCOUNT
South Bend Water Works
$158.19
Rose Exterminator
$42.00
Howard Park Hardware
$6.02
Michiana Lock & Key
$7.75
The South Bend Supply Company
$14.83
General Fund: Telephone
$214.85
CB /Sturges Bradley LLC
$499.80
CB /Sturges Bradley LLC
$167.80
CB /Sturges Bradley LLC
$617.90
619 BLACKTHORN GOLF COURSE
Meadowbrook Golf Group, Inc. $6,559.89
Upon a motion by Mr. Donoho, seconded by COMMISSION APPROVED THE CLAIMS SUBMITTED
Mr. Faccenda and unanimously carried, the DECEMBER 18, 1998, AND ORDERED THE CHECKS
Commission approved the Claims submitted TO BE RELEASED
December 18, 1998, and ordered the checks to
be released. Ms. Schwartz abstained.
4. COMMUNICATIONS
There were no Communications.
5. OLD BUSINESS
a. Commission approval requested for
Assignment to the Rental Rehabilitation
Loan Agreement for property at 1508 S.
Scott Street. (Timothy Hancz)
HAWPDATA \C0MMSN\121898.MIN -3-
THERE WERE NO COMMUNICATIONS
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
5. OLD BUSINESS (CONT.)
a. continued....
Mrs. Kolata explained that this item was
tabled at the December 4, 1998, meeting,
so that Mary Beth Thompson could get
additional information concerning this
transaction.
Mary Beth Thompson, Assistant Director
of the Bureau of Housing, stated that
Timothy Hancz is the owner of the
property at 1508 S. Scott Street. In 1991
the property was on Code Enforcement's
demolition list. Subsequently, the file on
this property was closed in April 1992. At
that time, Mr. Hancz had fulfilled the
Rental Rehab Loan requirements, in terms
of repairs. In 1996, Mr. Hancz's property
had a code violation, which resulted in a
$1,000 fine being placed on the property.
He did not meet the repair requirements of
the violation. Subsequently, in September
1997 the violation on the property was
addressed by Mr. Hancz. However, he did
not pay the $1,000 fine. In 1998 Mr.
Hancz had a structural violation.
Subsequently, the file was closed in
November 1998 with no fine imposed.
Ms. Thompson stated that she spoke to
Susan Casey, who was interested in
purchasing the property at 1508 S. Scott
Street from Mr. Hancz. Ms. Thompson
stated that she was informed that
Mr. Hancz and Mrs. Casey had already
closed on the sale of the property at 1508
S. Scott Street. Ms. Thompson also stated
that she asked Mrs. Casey why
HAWPDATA \C0MMSN\121898.MIN -4-
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
5. OLD BUSINESS (CONT.)
a. continued....
Mrs. Casey's mortgage company closed on
the property with the $1,000 fine on the
title. Ms. Thompson stated that Mrs.
Casey informed her that she (Mrs. Casey)
was not aware of the open issue on the
title. Ms. Thompson stated that she asked
Mrs. Casey if she had sought legal advice
regarding the documents Mrs. Casey
signed relative to the sale of the property
at 1508 S. Scott Street. Mrs. Casey
informed her that she did not seek legal
advice regarding the documents she signed
relative to the sale of the property at 1508
S. Scott Street.
Ms. Thompson also stated that she asked
Mrs. Casey if she had any prior dealings
with Mr. Hancz, and Mrs. Casey informed
her that she did not. Ms. Thompson stated
that Mrs. Casey informed her that she saw
an ad in the newspaper, which Mr. Hancz
placed. The ad stated that Mr. Hancz buys
and sells houses. Mrs. Casey and her
husband called Mr. Hancz and he
informed them of a package deal on four
properties he owns. Ms. Thompson stated
that Mrs. Casey listed two of the four
properties on her application with the
Bureau of Housing, including the property
at 1508 S. Scott Street.
Ms. Thompson stated that she reviewed
the mortgage and rental rehab loan
agreements and both state that transfer of
ownership without approval, which has
HAWPDATATOMMSM121898.MIN -5-
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
5. OLD BUSINESS (CONT.)
a. continued....
already transpired, is both a breach and
default of the mortgage and rental rehab
agreements. She also stated that she
received a check from Title Express,
which closed on the property at 1508 S.
Scott Street, for the past years' payments
on Mr. Hancz's loan. These payments
were not forgiven because of his non-
compliance with the requirements of the
Rental Rehab program. However, the
check Ms. Thompson received from Title
Express was not to pay off the entire loan
amount owe by Mr. Hancz. She also
stated that neither Mr. Hancz nor Title
Express has contacted her to request a
release.
Mrs. Kolata asked Ms. Thompson if the
full amount of the Rental Rehab loan is
still on the property. Ms. Thompson
stated that it is.
Ms. Thompson stated that Mr. Hancz still
owes approximately $2,600, which would
have been forgiven over the next three
years of the loan period, providing all
provisions of the Rental Rehab Agreement
were met. Mrs. Kolata asked if Mrs.
Casey is aware that the $2,600 owed by
Mr. Hancz will appear on the title to the
property at 1508 S. Scott Street. Mrs.
Thompson stated that Mrs. Casey asked
what would happen if the Commission
does not re- assign the loan. Mrs.
Thompson stated that she informed Mrs.
Casey that she would not have a clear title.
HAWPDATATOMMSM121898.MIN -6-
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
5. OLD BUSINESS (CONT.)
a. continued....
Upon a motion by Ms. Schwartz, seconded
by Mr. Faccenda and unanimously carried,
the Commission approved the Assignment
to the Rental Rehabilitation Loan
Agreement for property at 1508 S. Scott
Street, without releasing Timothy Hancz
of his indebtedness to the Bureau of
Housing. (Timothy Hancz)
6. NEW BUSINESS
Mrs. Kolata asked permission to add items 6.r.
and 6.s. to the agenda. There was no objection
and items 6.r. and 6.s. were added to the
agenda.
a. Commission approval requested for the
Blackthorn Golf Club Proposed Pricing
for 1999.
Mrs. Kolata stated that many of the rates
for 1999 remained the same as the
proposed pricing for 1998. However,
there were some increases suggested in the
Proposed Pricing for 1999.
Mr. Donoho asked Joe Zaleski, of
Meadowbrook Golf Group, what was the
overall projected revenue increase for
1999. Mr. Zaleski stated that the overall
projected revenue increase for 1999 was
approximately $75,000, based on the
projected rounds of golf projected to be
played in 1999.
HAWPDATATOMMSM121898.MIN -7-
COMMISSION APPROVED THE ASSIGNMENT TO
THE RENTAL REHABILITATION LOAN AGREEMENT
FOR PROPERTY AT 1508 S. SCOTT STREET,
WITHOUT RELEASING TIMOTHY HANCZ OF HIS
INDEBTEDNESS TO THE BUREAU OF HOUSING.
(TIMOTHY HANCZ)
ITEMS 6.R. AND 6.S. WERE ADDED TO THE AGENDA
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
6. NEW BUSINESS (CONT.)
a. continued....
Upon a motion Mr. Donoho, seconded by
Mr. Faccenda and unanimously carried,
the Commission approved the Blackthorn
Golf Course Proposed Pricing for 1999.
b. Public Hearing on Resolution No. 1652.
Mrs. Kolata asked that the following items
be entered into the record: Affidavits from
the Tri- County News and South Bend
Tribune that the Notice of Public Hearing
was published in those newspapers on
December 4, 1998.
Mrs. Kolata stated that the budget, which
was advertised, projects a total income of
$1,776,260 minus $251,908 of cost of
sales. The net income is $1,524,352. The
total expenses are $1,090,797. The total
debt service is $436,000. The estimated
cash balance at the end of 1998 was
$481,000. The estimated cash balance at
the end of 1999 is $478,945. The revised
debt service, due to refinancing of the
Blackthorn Golf Course Bond has saved
money for the Golf Course. However, the
first Bond payment amount has increased.
The Blackthorn Golf Course budget shows
that income is slightly less than total
expenditures plus debt service by
approximately $2,500 to $3,000. With the
cash balance, income being less than total
expenditures is not an issue. There will
still be close to $500,000 on hand, which
will be needed to cover cash flow, since
the Golf Course does not expect to
HAWPDATA \C0MMSN\121898.MM -8-
COMMISSION APPROVED THE BLACKTHORN GOLF
COURSE PROPOSED PRICING FOR 1999
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
6. NEW BUSINESS (CONT.)
b. continued....
generate income in the months of January,
February, November and December.
There is minimum income generated in
March and income starts to increase in
April.
Mr. Hunt opened the public hearing for
anyone who wished to speak regarding
Resolution No. 1652. There was no one
who wished to speak regarding Resolution
No. 1652. Mr. Hunt closed the public
hearing for whatever action the
Commission wished to take.
c. Commission approval requested for
rw Resolution No. 1652 appropriating
monies for the purpose of defraying the
expenses of certain local public
improvements for the fiscal year
beginning January 1, 1999, and ending
December 31, 1999, including all
outstanding claims and obligations,
fixing a time when the same shall take
effect.
Upon a motion by Mr. Donoho, seconded
by Mr. Faccenda and unanimously carried,
the Commission adopted Resolution
No. 1652 appropriating monies for the
purpose of defraying the expenses of
certain local public improvements for the
fiscal year beginning January 1, 1999, and
ending December 31, 1999, including all
outstanding claims and obligations, fixing
a time when the same shall take effect.
HAWPDATA \C0MMSN\121898.MIN -9-
COMMISSION ADOPTED RESOLUTION NO. 1652
APPROPRIATING MONIES FOR THE PURPOSE OF
DEFRAYING THE EXPENSES OF CERTAIN LOCAL
PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR
BEGINNING JANUARY 1, 1999, AND ENDING
DECEMBER 31, 1999, INCLUDING ALL
OUTSTANDING CLAIMS AND OBLIGATIONS,
FIXING A TIME WHEN THE SAME SHALL TAKE
EFFECT
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
6. NEW BUSINESS (CONT.)
d. Commission approval requested for
Corporate Undertaking in the Sample -
Ewing Development Area.
Mrs. Kolata asked that item 6.d be tabled. ITEM 6.D. WAS TABLED
There was no objection and item 6.d. was
tabled.
e. Commission approval requested for
Amendment to the Listing Agreement
with the Stone Group.
Mrs. Kolata stated that the Commission
currently has a Listing Agreement with the
Stone Group for management of land in
the Toll Road Industrial Park, US 31
Industrial Park, Studebaker Corridor and
downtown South Bend. Currently, the
Listing Agreement does not have a
minimum real estate commission
provision. The staff recommended
amending the Listing Agreement with the
Stone Group to include the minimum real
estate commission provision of $3,000 in
the Studebaker Corridor. She also stated
that Anne Brunel will finalize the
Amendment to the Listing Agreement to
include the $3,000 minimum real estate
commission provision.
Upon a motion by Mr. Faccenda, seconded COMMISSION APPROVED THE AMENDMENT TO
by Mr. Donoho and unanimously carried, THE LISTING AGREEMENT WITH THE STONE
the Commission approved the Amendment GROUP AND AUTHORIZED ITS EXECUTION
to the Listing Agreement with the Stone
Group and authorized its execution.
HAWPDATA \C0MMSN\121898.MIN -10-
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
6. NEW BUSINESS (CONT.)
f. Commission approval requested for
Release of Mortgage.
Anne Bruneel stated that the Rental Rehab
Loan for 1813 W. Linden dates back to
1989. The loan has reached its 10 -year
time period and all waivers have been
granted.
Upon a motion by Ms. Schwartz, seconded
by Mr. Faccenda and unanimously carried,
the Commission authorized the Release of
Mortgage for the property at 1813 W.
Linden.
g. Commission approval requested for
proposals for professional services in
the West Washington- Chapin
Development Area.
Mrs. Kolata stated that two proposals were
received for appraisal of three vacant lots
on the north side of Western Avenue,
between Chapin and Laurel Streets. The
lots are between the Elks Lodge and a
church. The three vacant lots would be
acquired by Redevelopment and
constructed into a parking lot, which could
be used by the Elks Lodge, the church and
the neighborhood.
The first proposal received was from Doug
Carpenter in the amount of $300. The
second proposal received was from Rick
Pitts in the amount of $2,000. The staff
recommends accepting both proposals.
HAWPDATA \C0MMSN\121898.MIN -11-
COMMISSION AUTHORIZED THE RELEASE OF
MORTGAGE FOR THE PROPERTY AT 1813 W.
LINDEN
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
6. NEW BUSINESS (CONT.)
g. continued....
Upon a motion by Ms. Schwartz, seconded
by Mr. Faccenda and unanimously carried,
the Commission accepted the proposals
from Douglas Carpenter in the amount of
$300 and Rick Pitts in the amount of
$2,000 for professional services in the
West Washington- Chapin Development
Area.
h. Commission approval requested for
professional services in the Sample -
Ewing Development Area.
Mrs. Kolata asked permission to table item
6.h. There was no objection and item 6.h.
was tabled.
i. Commission approval requested for
Loan and Grant in connection with the
Affordable Loan Program for property
at 1081 Woodward. (Doug & Mary
Strickler)
Mrs. Kolata stated that the loan to Doug &
Mary Strickler is in the amount of $2,800
at 5% interest for five years with monthly
payments of $52.84. The grant is in the
amount of $1,122.
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 1081
Woodward. (Doug & Mary Strickler)
HAWPDATA \C0MMSN\121898.MIN -12-
COMMISSION ACCEPTED THE PROPOSALS FROM
DOUGLAS CARPENTER IN THE AMOUNT OF $300
AND RICK PITTS IN THE AMOUNT OF $2,000 FOR
PROFESSIONAL SERVICES IN THE WEST
WASHINGTON - CHAPIN DEVELOPMENT AREA
ITEM 6.H. WAS TABLED
COMMISSION APPROVED THE LOAN AND GRANT
IN CONNECTION WITH THE AFFORDABLE LOAN
PROGRAM FOR PROPERTY AT 1081 WOODWARD
(DOUG & MARY STRICKLER)
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
6. NEW BUSINESS (CONT.)
j. Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property at 422 N. College. (Housing
Development Corporation)
Mrs. Kolata stated that the Certificate of
Waiver forgives $2,600 as of March 4,
1998.
Upon a motion by Mr. Faccenda, seconded
by Ms. Schwartz and unanimously carried,
the Commission approved the Certificate
of Waiver in connection with the Rental
Rehab Loan Program for property at 422
N. College. (Housing Development
Corporation)
k. Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property at 901, 905 and 909
Lincolnway West. (Housing
Development Corporation)
Mrs. Kolata stated that the Certificate of
Waiver forgives $4,500 as of May 30,
1998.
Upon a motion by Mr. Faccenda, seconded
by Ms. Schwartz and unanimously carried,
the Commission approved the Certificate
of Waiver in connection with the Rental
Rehab Loan Program for properties at 901,
905 and 909 Lincolnway West. (Housing
Development Corporation)
HAWPDATATOMMSM121898.MIN -13-
COMMISSION APPROVED THE CERTIFICATE OF
WAIVER IN CONNECTION WITH THE RENTAL
REHAB LOAN PROGRAM FOR PROPERTY AT 422 N.
COLLEGE (HOUSING DEVELOPMENT
CORPORATION)
COMMISSION APPROVED THE CERTIFICATE OF
WAIVER IN CONNECTION WITH THE RENTAL
REHAB LOAN PROGRAM FOR PROPERTIES AT 901,
905 AND 909 LINCOLNWAY WEST (HOUSING
DEVELOPMENT CORPORATION)
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
6. NEW BUSINESS (CONT.)
1. Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property at 1813 West Linden.
(Housing Development Corporation)
Mrs. Kolata stated that the Certificate of
Waiver forgives $526.50 as of October 18,
1998.
Upon a motion by Mr. Faccenda, seconded
by Ms. Schwartz and unanimously carried,
the Commission approved the Certificate
of Waiver in connection with the Rental
Rehab Loan Program for property at 1813
West Linden. (Housing Development
Corporation)
m. Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property at 743 N. Blaine. (Housing
Development Corporation)
Mrs. Kolata stated that the Certificate of
Waiver forgives $750 as of October 1,
1998.
Upon a motion by Mr. Faccenda, seconded
by Ms. Schwartz and unanimously carried,
the Commission approved the Certificate
of Waiver in connection with the Rental
Rehab Loan Program for property at 743
N. Blaine. (Housing Development
Corporation)
HAWPDATATOMMSM121898.MIN -14-
COMMISSION APPROVED THE CERTIFICATE OF
WAIVER IN CONNECTION WITH THE RENTAL
REHAB LOAN PROGRAM FOR PROPERTY AT 1813
WEST LINDEN (HOUSING DEVELOPMENT
CORPORATION)
COMMISSION APPROVED THE CERTIFICATE OF
WAIVER IN CONNECTION WITH THE RENTAL
REHAB LOAN PROGRAM FOR PROPERTY AT 743 N.
BLAINE (HOUSING DEVELOPMENT CORPORATION)
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
6. NEW BUSINESS (CONT.)
n. Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property at 239 N. LaPorte. (Housing
Development Corporation)
Mrs. Kolata stated that the Certificate of
Waiver forgives $1,400 as of May 1, 1998.
Upon a motion by Mr. Faccenda, seconded
by Ms. Schwartz and unanimously carried,
the Commission approved the Certificate
of Waiver in connection with the Rental
Rehab Loan Program for property at 239
N. LaPorte. (Housing Development
Corporation)
o. Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property at 1711 S. St. Joseph Street.
(Housing Development Corporation)
Mrs. Kolata stated that the Certificate of
Waiver forgives $1,500 as of March 1,
1998.
Upon a motion by Mr. Faccenda, seconded
by Ms. Schwartz and unanimously carried,
the Commission approved the Certificate
of Waiver in connection with the Rental
Rehab Loan Program for property at 1711
S. St. Joseph Street. (Housing
Development Corporation)
HAWPDATATOMMSM 121898.MIN -15-
COMMISSION APPROVED THE CERTIFICATE OF
WAIVER IN CONNECTION WITH THE RENTAL
REHAB LOAN PROGRAM FOR PROPERTY AT 239 N.
LAPORTE (HOUSING DEVELOPMENT
CORPORATION)
COMMISSION APPROVED THE CERTIFICATE OF
WAIVER IN CONNECTION WITH THE RENTAL
REHAB LOAN PROGRAM FOR PROPERTY AT 1711 S.
ST. JOSEPH STREET (HOUSING DEVELOPMENT
CORPORATION)
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
6. NEW BUSINESS (CONT.)
p. Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property at 107 S. William. (Wayne Z.
& Earl S. Woodworth)
Mrs. Kolata stated that the Certificate of
Waiver forgives $1,700 as of December
15, 1998.
Upon a motion by Mr. Faccenda, seconded
Ms. Schwartz and unanimously carried,
the Commission approved the Certificate
of Waiver in connection with the Rental
Rehab Loan Program for property at 107
S. William. (Wayne Z. & Earl
Woodworth)
q. Commission approval requested for
Certificate of Waiver in connection with
the Rental Rehab Loan Program for
property at 712 N. Lindsey. (Louis M.
& Mary H. Seago)
Mrs. Kolata stated that the Certificate of
Waiver forgives $406.70 as of August 30,
1998.
Upon a motion by Mr. Faccenda, seconded
by Ms. Schwartz and unanimously carried,
the Commission approved the Certificate
of Waiver in connection with the Rental
Rehab Loan Program for property at 712
N. Lindsey. (Louis M. & Mary H. Seago)
HAWPDATATOMMSM 121898.M1N -16-
COMMISSION APPROVED THE CERTIFICATE OF
WAIVER IN CONNECTION WITH THE RENTAL
REHAB LOAN PROGRAM FOR PROPERTY AT 107 S.
WILLIAM. (WAYNE Z. & EARL WOODWORTH)
COMMISSION APPROVED THE CERTIFICATE OF
WAIVER IN CONNECTION WITH THE RENTAL
REHAB LOAN PROGRAM FOR PROPERTY AT 712 N.
LINDSEY (LOUIS M. & MARY H. SEAGO)
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
6. NEW BUSINESS (CONT.)
r. Staff report on disposition of property
in the Airport Economic Development
Area.
Owen Rock, Economic Development
Specialist, stated that a proposal was
received from Eagle Freight to purchase
6.3 acres of land in the US 31 Industrial
Park. Eagle Freight's proposed purchase
price is $201,600 for the 6.3 acre land
(approximately $32,000 an acre). Eagle
Freight has provided the required 10
percent performance guarantee of $20,160.
Eagle Freight proposes to construct a
20,000 sf building with a masonry front
and metal sides. The building will also
have 11 docks and a 20 ft setback. Of the
20,000 sf, 2,500 sf will be office space.
Eagle Freight will have an additional
20,000 sf of land remaining to expand its
new facility in the future. Eagle Freight's
current lease will end in the spring of
1999. Eagle Freight would like to be in
their new building by the spring of 1999.
In addition, the parcel of land needs to be
rezoned back to "D" light industrial from
"IP" Industrial Park zoning.
Tim Heinz of Eagle Freight stated that
Eagle Freight is and has been the fastest
growing air freight carrier and expediter
for the past three years. He also stated that
he has been with Eagle Freight for
approximately a year and a half. Eagle
Freight opened a facility off of Mayflower
Road in South Bend, and Eagle Freight's
revenue continues to increase. Eagle
HAWPDATATOMMSM121898.MIN -17-
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
6. NEW BUSINESS (CONT.)
r. continued....
Freight's largest customer, right now, is
Tech Data in South Bend. Eagle Freight's
second largest customer is Bowne
Printing. Bowne was one of Eagle
Freight's first customers approximately
sixteen years ago in Houston, Texas.
Eagle Freight provides air freight carrier
services. It takes shipments from its
customers that are within a 60 mile radius
of South Bend and takes them to the
airport to fly them to their destination. If
the shipments cannot be flown out of
South Bend, then they are flown out of
Chicago, Illinois. Eagle Freight averages
approximately fifty shipments a night.
The average shipment weight is
approximately 400 to 5001bs. Eagle
Freight's shipment weight differs largely
from other air freight carriers' shipment
weight. Some air freight carriers average
shipment weight is from 5,000 to 7,000
lbs. Primarily, some companies cannot
afford to send that large of a shipment. As
a result, a company will send smaller
shipments.
The majority of Eagle Freight's "fleet" are
bobtail- straight trucks. However, Eagle
Freight anticipates purchasing one or two
tractor - trailer trucks within the next 12 to
18 months and/or cargo vans. Currently,
Eagle Freight has 16 bobtail- straight
trucks, which are dedicated to two
different parts of Eagle Freight's business:
(1) The air freight pick up and delivery.
HAWPDATA \COMMSN\121898.M1N -18-
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
6. NEW BUSINESS (CONT.)
r. continued....
(2) Expedited trucking. Eagle Freight
does a lot of expedited trucking for Bowne
Printing. Eagle Freight currently has two
dispatchers on site at Bowne Printing, and
Eagle Freight is Bowne Printing's in-
house logistics carrier.
Mr. Heinz stated that Eagle Freight needs
to move fairly quick on constructing its
new facility. He also stated that Tech Data
asked Eagle Freight to perform some detail
work for them. The detail work consisted
of repackaging and restickering software
products. Eagle Freight called some
temporary agencies to have temporaries
brought in to complete the work. Tech
Data was extremely pleased with the work
completed by Eagle Freight. Mr. Heinz
also stated that Tech Data plans to give
Eagle Freight another job order from one
of Tech Data's facilities in New Jersey.
As a result of the latter and the growing
demand for Eagle Freight's services, Eagle
Freight needs to construct a larger facility.
As a result of Eagle Freight's growing
business, it was able to create jobs for
temporary employees. Tech Data
representatives flew into South Bend from
Florida to inspect the work completed by
Eagle Freight, and Tech Data was very
impressed with Eagle Freight's quality of
work.
HAWPDATATOMMSM121898.MIN -19-
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
6. NEW BUSINESS (CONT.)
r. continued....
Mrs. Kolata asked Mr. Heinz if the time
frame for rezoning the parcel of land from
"IP" to "D" light industrial and the time
frame for constructing the road on
Ameritech Drive would affect Eagle
Freight's anticipated move -in date. Mr.
Heinz stated that the most critical part of
its proposed project is its need to construct
the new facility. He knows that the
property needs to be rezoned and that the
road won't be complete until late spring or
early summer.
Ms. Schwartz asked Mr. Heinz if Eagle
Freight is not awarded the job order by
Tech Data, then would Eagle Freight still
construct the new facility. Mr. Heinz
stated that they would. He also stated that
South Bend ranked number three out of
750 air freight carrier stations, in terms of
growth, quality, on time performance and
profitability.
Mr. Heinz also stated that if Eagle Freight
does not get the Tech Data job order, then
he would like to put a second office on the
north side of the new facility and sublease
three doors on that side of the building to
small air freight carriers.
Mr. Hunt asked Mr. Heinz if Eagle Freight
plans to increase its number of employees
after Eagle Freight moves into its new
facility. Mr. Heinz stated that Eagle
Freight currently has 36 employees and
anticipates having a total of 50 employees
HAWPDATATOMMSM121898.MIN -20-
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
6. NEW BUSINESS (CONT.)
r. continued....
in approximately 18 to 24 months. Mr.
Heinz also stated that a lot of Eagle
Freight's recruits come from Bethel
College and these recruits have done an
outstanding job for Eagle Freight.
Mrs. Kolata stated that brick or masonry
may need to be added to the south
elevation of the building, where the office
area will be located. In addition, she asked
Mr. Heinz to work with Owen Rock on
landscaping and/or berming. The staff
recommended accepting the proposal from
Eagle Freight and moving forward with
rezoning the parcel of land. Mr. Heinz
stated that any suggestions and requests
the Commission has, Eagle Freight will try
to comply with those suggestions and
requests.
Upon a motion by Mr. Faccenda, seconded
by Mr. Donoho and unanimously carried,
the Commission approved the proposal
from Eagle Freight for purchase of 6.3
acres of land in the US 31 Industrial Park
for $201,600.
s. Commission approval requested for
proposal for professional services in the
Airport Economic Development Area.
Mrs. Kolata stated that the proposal
received from Lawson Fisher Associates,
Inc. was for engineering services related to
construction of 660 feet of Showerlux
Drive in the Airport Economic
HAWPDATATOMMSM 121898.MIN -21-
COMMISSION APPROVED THE PROPOSAL FROM
EAGLE FREIGHT FOR PURCHASE OF 6.3 ACRES OF
LAND IN THE US 31 INDUSTRIAL PARK FOR
$201,600
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
6. NEW BUSINESS (CONT.)
s. continued....
Development Area. Lawson Fisher
proposes to complete the engineering work
for a fee not -to- exceed $3,400. The staff
recommended accepting the proposal from
Lawson Fisher Associates, Inc.
She also stated that the road needs to be
completed by June 1999. It will serve the
Schafer Gear building. It is anticipated
that Heinz Baus will pay half of the $3,400
fee and 50 percent of the costs to construct
the road. The City will need to have a
written agreement with Mr. Baus on the
construction costs prior to awarding bids
for the road construction. The engineering
work needs to be approved now, so that
the road can be put out for bid soon.
Upon a motion by Ms. Schwartz, seconded
by Mr. Donoho and unanimously carried,
the Commission accepted the proposal
from Lawson Fisher Associates, Inc. in the
amount of $3,400 for professional services
in the Airport Economic Development
Area.
7. PROGRESS REPORTS
Mrs. Kolata stated that Michele Bush,
Economic Development Specialist, created a
Commercial Corridor newsletter. The
newsletter will be sent to all the people in the
South Gateway, Lincolnway West and
Western Avenue Commercial Corridors. The
Redevelopment Commission, the Common
Council and the Chamber of Commerce will
H:\WPDATA\C0MMSN\121898.M1N
-22-
COMMISSION ACCEPTED THE PROPOSAL FROM
LAWSON FISHER ASSOCIATES, INC. IN THE
AMOUNT OF $3,400 FOR PROFESSIONAL SERVICES
IN THE AIRPORT ECONOMIC DEVELOPMENT AREA
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
7. PROGRESS REPORTS (CONT.)
also be on the mailing list to receive a copy of
the newsletter monthly.
Michele Bush stated that she met with the
Infrastructure Subcommittee for South
Gateway on December 15, 1998, at 7:00 p.m.
She also stated that things are in place to
reconstruct and landscape the traffic island at
Michigan and Chippewa Streets. The request
for bids were sent out and have been received
back.
She also stated that the Infrastructure
Subcommittee anticipates developing curbs,
sidewalks and planting trees along South
Michigan beginning at the intersection of
South Michigan and Ewing Streets.
Mrs. Kolata announced that Anne Bruneel,
Redevelopment's attorney, will resign in
January 1999 to take a position at Baker &
Daniels law firm. Mr. Hunt thanked Mrs.
Bruneel for all the hard work she has done for
Redevelopment and wished her well in her
future endeavors.
8. NEXT COMMISSION MEETING:
The next Regular Meeting of the
Redevelopment Commission is scheduled for
January 8, 1999, at 10:00 a.m.
HAWPDATATOMMSM121898.MIN -23-
South Bend Redevelopment Commission
Regular Meeting - December 18, 1998
9. ADJOURNMENT
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 an eeting was adjourned at
11:0
IzA
Robert W. Hunt, President
H:1 W PDATMCOMMSM 121898. MIN
ADJOURNMENT
!N
Ann E. Kolata, Director
-24-