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Home My WebLink AboutRM 05-21-99SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING May 21, 1999 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 Mr. Hardie Blake Legal Counsel: Mr. Brian Steinke Redevelopment Staff: Mrs. Ann E. Kolata, Director Mrs. Vangelean Urbanski, Recording Secretary Mr. Owen Rock, Economic Development Specialist Mr. Alex Koenig, Economic Development Specialist Mr. Michael Giulioni, Economic Development Specialist Mrs. Michele Bush, Economic Development Specialist Div. of Planning & Neighborhood Dev. Mr. Marco Mariani, Neighborhood Planner Business Assistance: Ms. Nancy Van Scoyk, Economic Development Specialist Others: Ms. Dea Andrews, South Bend Heritage Foundation Mr. Hunt noted that the Executive Session will continue immediately following adjournment of the Regular Meeting. 2. APPROVAL OF MINUTES a. Commission approval of Minutes of the Regular Meeting of May 7,1999. Upon a motion by Mr. Donoho, seconded by Mr. Blake and unanimously carried, the Commission approved the Minutes of the Regular Meeting of May 7, 1999. C; HAWPDATA \C0MMSN\052199.MIN -I- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF MAY 7, 1999 South Bend Redevelopment Commission Regular Meeting - May 21, 1999 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted May 21, 1999 for approval. 212 CDBG COMMUNITY DEVELOPMENT Postmaster Alltel Dainty Maid Bake Shop Jennifer Hullinger Liability Insurance Gene's Camera Store NBD Bank Baker & Daniels Engineering Department Notary Public Underwriters, Inc. Century Center Board of Managers CB Richard Ellis /Sturges Bradley Baker & Daniels Catering by Billie, Inc. Community and Economic Development Allegra Print and Imaging Headset Discounters Ameritech American Electric Power South Bend Water Works 324 FUND Shamrock Net Design Troyer Group Inc. Metropolitan Title - Indiana, L.L.C. American Electric Power St. Joseph County Treasurer 414 SAMPLE -EWING FUND American Electric Power Cole Associates Inc. Chamber of Commerce South Bend Water Works HAWPDATA \C0MMSN\052199.M1N -2- $167.61 $95.45 $29.94 $29.40 $422.00 $22.88 $42.62 $1,391.50 $157.50 $68.00 $27.50 $1,071.71 $4,691.16 $54.90 $12.80 $508.00 $30.00 $26.79 $22.06 $15.56 $35.00 $700.00 $170.00 $7.07 $10.00 $236.02 $9,340.00 $390.00 $30.20 South Bend Redevelopment Commission Regular Meeting - May 21, 1999 3. APPROVAL OF CLAIMS (CONT) 414 SAMPLE -EWING FUND Chris & Cheryl McCarthy & Metropolitan Title - Indiana, L.L.C. Waste Management Superior Irene Brazier & South Bend Water Works Irene Brazier St. Joseph County Treasurer 420 SBDCA GENERAL ACCOUNT St. Joseph County Treasurer Upon a motion by Mr. Donoho, seconded by Mr. Blake and carried, the Commission approved the Claims submitted May 21, 1999, and ordered the checks to be released. Ms. Schwartz abstained. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS a. Commission approval requested for proposal for professional services in the Sample -Ewing Development Area. (414 W. Sample) Mrs. Kolata stated that the proposal received from Ken Herceg & Associates, Inc. in the amount of $79,903 for design services related to partial rehabilitation of Studebaker Building No. 92 in the Sample -Ewing Development Area and for identification and disposal of items abandoned inside the building. ,,j HAWPDATATOMMSM052199.MIN -3- $11,549.61 $404.69 $48.00 $38.90 $74.81 $1,313.72 COMMISSION APPROVED THE CLAIMS SUBMITTED MAY 21, 1999, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Regular Meeting - May 21, 1999 5. OLD BUSINESS (CONT.) a. continued.... She stated that the two components to the Contract are as follows: (1) An inventory will be conducted in order to determine what is in Studebaker Building No. 92 in order to clean up the abandoned material inside the building; (2) Recommendations will be made regarding what to do to the outside of the building in order to make it aesthetically pleasing. Mrs. Kolata stated that Ken Herceg & Associates, Inc. will write the specs for the actual work and monitor the construction. The staff recommends approving the proposal but authorizing Ken Herceg & Associates, Inc. to only proceed with Phase I until given written authorization from the Redevelopment staff to proceed with Phases II and III. Upon a motion by Ms. Schwartz, seconded by Mr. Blake and unanimously carried, the Commission accepted the proposal from Ken Herceg & Associates, Inc. in the amount of $79,903 for design services related to partial rehabilitation of Studebaker Building No. 92 in the Sample -Ewing development Area, subject to Ken Herceg & Associates, Inc. only proceeding with Phase I until receiving written authorization from the staff to proceed with Phases II and IIl. HAWPDATA \C0MMSN\052199.M1N -4- COMMISSION ACCEPTED THE PROPOSAL FROM KEN HERCEG & ASSOCIATES, INC. IN THE AMOUNT OF $79,903 FOR DESIGN SERVICES RELATED TO PARTIAL REHABILITATION OF STUDEBAKER BUILDING NO. 92 IN THE SAMPLE -EWING DEVELOPMENT AREA, SUBJECT TO KEN HERCEG & ASSOCIATES, INC. ONLY PROCEEDING WITH PHASE I UNTIL RECEIVING WRITTEN AUTHORIZATION FROM THE STAFF TO PROCEED WITH PHASES 11 AND III South Bend Redevelopment Commission Regular Meeting - May 21, 1999 6. NEW BUSINESS Mrs. Kolata asked permission to add ITEM 61. WAS ADDED TO THE AGENDA item 6.f. to the agenda. There was no objection and item 6.f. was added to the agenda. a. Commission approval requested for Resolution No. 1683 approving an application for real property tax deduction for properties at 638, 709, 713, 716, 717, 724, 725 and 728 Pennsylvania in the Sample -Ewing Development Area. (Board of Public Works and American Home Dreams, Inc.) American Home Dreams, Inc. will construct more than twenty homes throughout the site. The homes will be not less than 1,500 sf each, with up to 3 bedrooms, 2'/2 baths, a full finished basement and a one or two car garage. The sale price of each home will be around $70,000 to $75,000 and the homes will be available to low -and- moderate income first -time home buyers. Qualified buyers will also be eligible for a mortgage subsidy of between $15,000 and $17,000 through the St. Joseph County Housing Assistance Office. The total cost of the homes is expected to exceed $1.4 million (excluding land). A review of the tax abatements previously granted finds that the Board of Public Works has been a co- petitioner with several other entities, which have been granted tax abatement. HAWPDATA \C0MMSM052199.MIN -5- South Bend Redevelopment Commission Regular Meeting - May 21, 1999 6. NEW BUSINESS (CONT.) a. continued.... The other entities are responsible for the compliance reporting requirements for the previous abatements. American Home Dreams, Inc. has been granted previous tax abatements. The building commissioner has reviewed the petition and finds the properties to be properly zoned for the proposed project; however, a rezoning of the properties will be pursued to change the zoning from B residential, which allows multi - family, to A residential, which is single family only. A review of the designated South Bend Redevelopment Areas finds that the properties are located in the Sample /Ewing 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 American Home Dreams, Inc. meets the qualifications for a five -year residential tax abatement under Single Family Real Property Abatement. IL H: \WPDATA \C0MMSN\052199.M1N -6- South Bend Redevelopment Commission Regular Meeting - May 21, 1999 6. NEW BUSINESS (CONT.) a. continued.... Using the estimated project cost of $1.4 million (excluding land), the taxes generated will be $9,581.33 over the five -year period, per unit. Taxes abated over the five -year period will be approximately $7,130.29, per unit. Taxes still paid with the abatement over the five -year period will be approximately $2,451.04, per unit. Ms. Schwartz asked if the Board of Works had approved the transfer of the land to American Home Dreams. Mr. Mariani stated that had not yet taken place. Ms. Schwartz said that she did not want to act on this resolution until the Board of Works authorized the transfer. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and carried, the Commission tabled Resolution No. 1683 until the Booard of Works has authorized the transfer of the land to American Home Dreams, Inc. b. Commission approval requested for Resolution No. 1684 approving an application for personal property tax deduction for property at 3601 Gagnon in the Airport Economic Development Area. (Journeyman Tool & Mold, Inc.) ILH: \WPDATA \C0MMSN\052199.MIN -7- COMMISSION TABLED RESOLUTION NO. 1683 UNTIL THE BOOARD OF WORKS HAS AUTHORIZED THE TRANSFER OF THE LAND TO AMERICAN HOME DREAMS, INC. South Bend Redevelopment Commission Regular Meeting - May 21, 1999 6. NEW BUSINESS (CONT.) b. continued.... Journeyman Tool & Mold, Inc. designs and builds injection molds and tools for the production of plastic parts in the automotive, electrical, computer and medical industries. Their project calls for the purchase of a new CNC electrical discharge machine and a new CNC milling machine, which will enable the company to perform jobs with the newest technology that will cut costs to their customers and improve efficiency. The estimated project cost is $180,000. Per the petition, it is estimated that this project will create five new permanent, full -time jobs within the first year, representing a new annual payroll of $200,000 and will maintain 3 existing permanent, full -time jobs and no part- time jobs representing an annual payroll of $120,000. A review of the tax abatements previously granted, finds that Journeyman Tool & Mold, Inc. has not been granted previous tax abatement. The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. HAWPDATMCOMMSM052199.MIN -8- South Bend Redevelopment Commission Regular Meeting - May 21, 1999 6. NEW BUSINESS (CONT.) b. continued.... 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 personal property tax abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement petition finds that Journeyman Tool & Mold, Inc. meets the qualifications for a five - year personal property tax abatement under Tangible Personal Property Tax Abatement. Using the estimated project cost of $180,000, the taxes generated over the five -year period will be approximately $17,548. Taxes abated over the five - year period will be approximately $14,437. Taxes still paid with the abatement over the five -year period will be approximately $3,112. Upon a motion by Mr. Faccenda, COMMISSION ADOPTED RESOLUTION NO. 1684 seconded by Mr. Donoho and APPROVING AN APPLICATION FOR PERSONAL unanimously carried, the Commission PROPERTY TAX DEDUCTION FOR PROPERTY AT adopted Resolution No. 1684 approving 3601 GAGNON IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (JOURNEYMAN TOOL & an application for personal property tax MOLD, INC.) deduction for property at 3601 Gagnon in the Airport Economic Development Area. (Journeyman Tool & Mold, Inc.) HAWPDATA \C0MMSN\052199.MIN -9- South Bend Redevelopment Commission Regular Meeting - May 21, 1999 6. NEW BUSINESS (CONT.) c. Commission approval requested for Resolution No. 1685 approving an application for real property tax deduction for property at 1401 and 1405 West Washington in the West Washington- Chapin Development Area. (South Bend Heritage Foundation). South Bend Heritage Foundation (SBHF) has been developing the West Washington Neighborhood, a subdivision that makes up primarily the 1300 and 1400 blocks of West Washington Street. Twenty lots were replatted to construct new single - family homes. At the time of acquisition, these two lots were joined under one key number and were the location of an unused car wash. This building was demolished late last year. The size of each lot is 115.5' by 57.75'. A variety of Design Review approved home styles are available for the development on these lots. Plans for one and two story homes show a square footage of approximately 1, 150. In addition, all houses have full basements. None of the buildings will exceed 40 percent of the total lot size. Upon completion of construction, the new homes will be sold to owner occupants. The total cost of this portion of the total project is $155,580 or approximately $77,790 per house. HAWPDATA \COMMSN\052199.MIN -10- South Bend Redevelopment Commission Regular Meeting - May 21, 1999 6. NEW BUSINESS (CONT.) c. continued.... A review of the tax abatement records finds that South Bend Heritage has been associated with several 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 that the property is located in the West Washington- Chapin 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 South Bend Heritage Foundation meets the qualifications for a five -year residential tax abatement under Single Family Real Property Abatement. Using the estimated project cost of $77,790, per home, the taxes generated over the five -year period will be approximately $10,786.16, per home. Taxes abated over the five -year period will be approximately $7,418.48, per home. Taxes still paid with the abatement over the five -year period will be approximately $3,367.68, per home. HAW PDATA \COMMSN\052199.M1N -11- South Bend Redevelopment Commission Regular Meeting - May 21, 1999 6. NEW BUSINESS (CONT.) c. continued.... Dea Andrews, Assistant Director of South Bend Heritage Foundation, presented a site plan of the project to the Commission for its consideration. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and carried, the Commission adopted Resolution No. 1685 approving an application for real property tax deduction for property at 1401 and 1405 West Washington in the West Washington - Chapin Development Area (South Bend Heritage Foundation). Mr. Blake abstained. d. Staff report on disposition of property in the South Bend Central Development area. Mrs. Kolata stated that there was no staff report. e. Staff report on disposition of property in the Sample -Ewing Development Area. Mrs. Kolata stated that there was no staff report. f. Commission approval requested for proposal from CFH Landscape Services for professional services in the South Bend Central Development Area. ' HAWPDATA \C0MMSN\052199.MIN -12- COMMISSION ADOPTED RESOLUTION NO. 1685 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY AT 1401 AND 1405 WEST WASHINGTON IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA. (SOUTH BEND HERITAGE FOUNDATION) THERE WAS NO STAFF REPORT THERE WAS NO STAFF REPORT South Bend Redevelopment Commission Regular Meeting - May 21, 1999 6. NEW BUSINESS (CONT.) E continued.... Mrs. Kolata stated that the proposal received from CFH Landscape Services is in the amount of $17,330 to plant and maintain 88 planters within the boundaries of LaSalle Ave., St. Joseph, Monroe and Lafayette Streets. Upon a motion by by Mr. Faccenda, seconded by Mr. Donoho and carried, the Commission accepted the proposal from CFH Landscape Services in the amount of $17,330 for professional services in the South Bend Central Development Area. Ms. Schwartz abstained. 7. PROGRESS REPORTS Mrs. Kolata reported that Andy Laurent, an Intern, is working full -time for the Division of Redevelopment during the spring and summer months. Andy will be working on the Blackthorn Phase 11 and III Master Plan. This is Andy's fourth summer with the Department. He will be in his fifth year of the planning program at Ball State in the fall. She also reported the Josh Howell, an Intern from the University of Notre Dame, is working for the Division of Redevelopment during the spring and summer months. He will be working on the downtown Market Survey. HAW PDATA \COMMSN \052199.MIN -13- COMMISSION ACCEPTED THE PROPOSAL FROM CFH LANDSCAPE SERVICES IN THE AMOUNT OF $17,330 FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - May 21, 1999 Mrs. Kolata reported that the "Welcome to South Bend" sign dedication will be held today at 1:30 p.m. at the corner of Chippewa Avenue and Michigan Street. She also reported that Business Districts, Inc. gave its final presentation on the Western Avenue Plan on May 11, 1999. Mrs. Kolata reported that Shamrock Development had a grand opening celebration on May 19, 1999. She also stated that the Woodwind & Brasswind reception is tonight from 5:00 p.m. to 7:00 p.m. Mrs. Kolata reported that Redevelopment will close on the Sale of Land with Jack Young on Tuesday and with Eagle Freight USA on Thursday, June 3, 1999. 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is scheduled for June 4, 1999, 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. Mr. Blake seconded the mot''q. �d the meeting was adjourned Robert W. Hunt, President ` HAWPDATATOMMSM052199.MIN ADJOURNMENT Ann E. olata, Director -14-