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Home My WebLink AboutRM 06-25-99SOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULED REGULAR MEETING June 25, 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. Michael Donoho, Vice - President Ms. Eugenia S. Schwartz, Secretary Mr. Philip J. Faccenda Mr. Hardie Blake Member Absent: Mr. Robert W. Hunt, President Legal Counsel: Mr. Brian Steinke Redevelopment Staff: Mr. Jon Hunt, 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 Ms. Hedy Robinson, Economic Development Specialist Mr. Robert Case, Economic Development Specialist Mr. Josh Howell, Intern Mr. Andy Laurent, Intern Business Assistance: Ms. Nancy Van Scoyk, Economic Development Specialist Media: Ms. Nancy Sulok, South Bend Tribune Others: Mr. Randy Rompola, Baker & Daniels Mr. Dale Miller, Dale's Service Center Mr. Bob Wilcox Mr. Steve Ellison, Stone Real Estate Group Mr. Gunther W. Jordan, Exacto Mr. Steve Depositar Mr. Hunt noted that the Executive Session will continue immediately following adjournment of the Rescheduled Regular Meeting. Ic HAWPDATATOMMSM062599.MIN I South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of June, 4, 1999. Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission approved the Minutes of the Regular Meeting of June 4, 1999. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF JUNE 4, 1999 Redevelopment Commission Claims submitted June 25, 1999, for approval. 212 CDBG COMMUNITY DEVELOPMENT Alltel Print Shop Liability Insurance Bank One NIPSCO American Electric Power Ameritech Engineering Department The Conservation Fund Gene's Camera Store, Inc. Baker & Daniels Catering by Billie FedEx Postmaster Tri County News, Inc. 324 FUND Peirce & Associates Abonmarche Consultants of Indiana, Inc. Traffic Engineering Consultants, P.C. Metropolitan Title Meadowbrook Golf Group, Inc. Business Facilities H: \WPDATA \C0MMSN\062599.MIN 2 $111.02 $326.56 $422.00 $12.38 $12.61 $21.66 $26.82 $66.60 $10.00 $13.78 $5,862.59 $61.75 $9.00 $246.66 $252.00 $2,511.25 $200.00 $1,417.50 $373.00 $4,350.00 $2,232.10 South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 3. APPROVAL OF CLAIMS (CONT.) 414 SAMPLE -EWING FUND St. Joseph Circuit Court Ken Herceg & Associates, Inc. R.E. Pitts & Associates, Inc. NIPSCO American Electric Power D.L. Carpenter Appraisers Lonzo & Irene Brazier The Abonmarche Group Waste Management Superior Waste Systems Cole Associates Inc. South Bend Water Works Bandito's Burritos 420 SBDCA GENERAL ACCOUNT American Electric Power Ginger Valley Landscape & Design, Inc. NIPSCO Rose Exterminator Co. South Bend Water Works C & S Service, Inc. Howard Park Hardware Big C. Lumber Upon a motion by Mr. Blake, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Claims submitted June 25, 1999, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. HAWPDATATOMMSM062599.MIN 3 $5,400.00 $13,160.00 $875.00 $71.28 $356.87 $2,700.00 $47.00 $17,250.00 $402.98 $3,852.00 $54.64 $13,147.50 $1,259.36 $2,700.00 $17.86 $42.00 $153.01 $48.00 $24.73 $48.70 COMMISSION APPROVED THE CLAIMS SUBMITTED JUNE 25, 1999, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS Jon Hunt asked permission to add item 6.s. ITEM 6.S. WAS ADDED TO THE AGENDA to the agenda. There was no objection and item 6.s. was added to the agenda. a. Commission approval requested for Resolution No. 1683 approving an application for real property tax deduction for property at 638, 709, 713, 716, 717, 724, 725 and 728 E. Pennsylvania in the Sample -Ewing Development Area. (Board of Public Works and American Home Dreams, Inc.) Nancy Van Scoyk, Economic Development Specialist, presented the following report to the Commission for its consideration. Jon Hunt noted that he is a board member of American Home Dreams, Inc. He also stated that he has informed the Commission in writing, in the past, that he is an American Home Dreams, Inc. board member. American Home Dreams, Inc. will construct more than twenty homes throughout the site. The homes will be not less than 1,500 sq ft 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 between HAWPDATATOMMSM062599.MIN 4 South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) a. continued... $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. 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. HAW PDATATOMMSM062599.MIN South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) a. continued... A review of the tax abatement, finds that American Home Dreams, Inc. meets the qualifications for a five -year residential tax abatement under Single Family Real Property Abatement. Using the estimated project cost of $1.4 million (excluding land), the taxes generated over the five -year period will be approximately $9,581.33, 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. Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission adopted Resolution No. 1683 approving an application for personal property tax deduction for property at 638, 709, 713, 716, 717, 724, 725 and 728 E. Pennsylvania in the Sample -Ewing Development Area. (Board of Public Works and American Home Dreams, Inc.) b. Commission approval requested for Resolution No. 1686 approving an application for personal property tax deduction for property at 1137 S. Lafayette Blvd. in the Sample -Ewing Development Area. (Exacto, Inc.) HAWPDATATOMMSM062599.MIN 6 COMMISSION ADOPTED RESOLUTION NO. 1683 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY AT 638, 709, 713, 716, 717, 724, 725 AND 728 E. PENNSYLVANIA IN THE SAMPLE -EWING DEVELOPMENT AREA. (BOARD OF PUBLIC WORKS AND AMERICAN HOME DREAMS, INC.) South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) b. continued... Exacto is a precision machine shop, which manufactures precision machined parts and components for diesel engine fuel injector systems, turbochargers and air compressors for trucks. Their project calls for the purchase and installation of new equipment. The estimated project cost is $760,000. Exacto stated its need to replace old equipment which has reached the end of its productive life and causes tremendous down time and unbearable repair costs. To stay competitive, Exacto is changing to a Cell- Concept, state -of -the -art equipment, which will assure further growth of Exacto. Per the petition, it is estimated that this project will create eight new, permanent, full -time jobs within the first year, representing a new annual payroll of $166,400 and will maintain 80 existing permanent, full -time jobs and no part-time jobs representing an annual payroll of $1,861,159. A review of the tax abatements previously granted, finds that Exacto has been granted one previous tax abatement. Exacto is in compliance with the reporting requirements for the previous abatement. HAWPDATA \COMMSN\062599.MIN 7 South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) b. continued... The building commissioner has reviewed the petition and finds the Property to be properly zoned for the proposed project. The property is located in an area presently designated as a Tax Abatement Impact Area by the South Bend Common Council. A review of the designated South Bend Redevelopment areas finds that the property is located in the Sample -Ewing 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 finds that Exacto meets the qualifications for a five -year personal property tax abatement under Tangible Personal Property Tax Abatement. Using the estimated project cost of $760,000, the taxes generated over the five -year period will be approximately $74,384. Taxes abated over the five - year period will be approximately $61,194. Taxes still paid with the abatement over the five -year period will be approximately $13,190. H: \WPDATA \COMMSN\062599.MIN 8 South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) b. continued... Gunther Jordan stated he is very pleased to be in the Sample -Ewing Development Area and definitely wants to remain there. Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission adopted Resolution No. 1686 approving an application for personal property tax deduction for property at 1137 S. Lafayette Blvd. in the Sample -Ewing Development Area. (Exacto, Inc.) c. Commission approval requested for Resolution No. 1687 approving an application for real property tax deduction for property at 4245 Meghan Beeler Court in the Airport Economic Development Area. (Robert M. Wilcox) Nancy Van Scoyk presented the following staff report to the Commission for its consideration. Robert M. Wilcox proposes to construct a 12,000 sq ft building in the West Cleveland Road Industrial Park. The estimated cost of construction is between $450,000 and $550,000. Michiana Micro Inc. supplies custom IT systems to large corporations and small to medium size businesses. The company builds to order custom manufactured PCs and maintenance H: \WPDATA \C0MMSN\062599.M1N 9 COMMISSION ADOPTED RESOLUTION NO. 1686 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY AT 1137 S. LAFAYETTE BLVD. IN THE SAMPLE -EWING DEVELOPMENT AREA. (EXACTO, INC.) South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) c. continued... service. The company also consists of 13 technicians that provide LAN /WAN engineering services for their clients. Robert M. Wilcox stated that without the tax abatement, the company cannot take advantage of current market growth areas. Per the petition, it is estimated that this project will create three new, permanent, full -time jobs within the first year, representing a new annual payroll of $135,000 and will maintain 15 existing permanent, full -time jobs representing an annual payroll of $500,000. A review of the tax abatements previously granted finds that Robert M. Wilcox has not been granted any 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 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. H: \WPDATA \COMMSM062599.MIN 10 South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) c. continued... A review of the Tax Abatement Ordinance finds that Robert M. Wilcox's project meets the qualifications for a three year real property tax abatement under Industrial Development Citywide General Standards. Using the estimated project cost of $760,000, the taxes generated over the three -year period will be approximately $75,381. Taxes abated over the three - year period will be approximately $50,254. Taxes still paid with the abatement over the three -year period will be approximately $25,127. Upon a motion by Mr. Blake, seconded COMMISSION ADOPTED RESOLUTION NO. 1687 by Mr. Faccenda and unanimously APPROVING AN APPLICATION FOR REAL carried, the Commission adopted PROPERTY TAX DEDUCTION FOR PROPERTY AT Resolution No. 1687 approving an 4245 MEGHAN BEELER COURT IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (ROBERT M. application for real property tax WILCOX) deduction for property at 4245 Meghan Beeler Court in the Airport Economic Development Area. (Robert M. Wilcox) HAWPDATA \C0MMSN\062599.MIN I I South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) d. Commission approval requested for Resolution No. 1688 of the South Bend Redevelopment Commission determining its intent to pay certain expenses incurred for local public improvements in or serving the Sample -Ewing Allocation Area (South Bend Allocation Area No. 8) from the Sample -Ewing Allocation Area (South Bend Allocation Area No. 8) Special Fund. Jon Hunt stated that the resolution states the Commission's intent to appropriate $400,000 of Tax Increment for local public improvements in the Sample -Ewing Development Area, and sets a public hearing for July 16, 1999, at 10:00 a.m. Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission adopted Resolution No. 1688 of the South Bend Redevelopment Commission determining its intent to pay certain expenses incurred for local public improvements in or serving the Sample -Ewing Allocation Area (South Bend Allocation Area No. 8) from the Sample -Ewing Allocation Area (South Bend Allocation Area No. 8) Special Fund. L, HAWPDATA \C0MMSN\062599.MIN 12 COMMISSION ADOPTED RESOLUTION NO. 1688 OF THE SOUTH BEND REDEVELOPMENT COMMISSION DETERMINING ITS INTENT TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE SAMPLE - EWING ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 8) FROM THE SAMPLE - EWING ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 8) SPECIAL FUND South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) e. Commission approval requested for Resolution No. 1689 of the South Bend Redevelopment Commission determining its intent to pay certain expenses incurred for local public improvements in or serving the Airport Economic Development Area Allocation Area No. 1 ( "Allocation Area No. V) from the Airport Economic Development Area Allocation Area No. 1 Special Fund (The "Allocation Fund "). Jon Hunt stated that the resolution states the Commission's intent to appropriate $2,400,000 of Tax Increment to pay for local public Icimprovements in the Airport Economic Development Area, and sets a public hearing for July 16, 1999, at 10:00 a.m. Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission adopted Resolution No. 1689 of the South Bend Redevelopment Commission determining its intent to pay certain expenses incurred for local public improvements in or serving the Airport Economic Development Area Allocation Area No. 1 ( "Allocation Area No. 1 ") from the Airport Economic Development Area Allocation Area No. 1 Special Fund (The "Allocation Fund "). H: \WPDATA \C0MMSN\062599.MIN 13 COMMISSION ADOPTED RESOLUTION NO. 1689 OF THE SOUTH BEND REDEVELOPMENT COMMISSION DETERMINING ITS INTENT TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE AIRPORT ECONOMIC DEVELOPMENT AREA ALLOCATION AREA NO. I ( "ALLOCATION AREA NO. I ") FROM THE AIRPORT ECONOMIC DEVELOPMENT AREA ALLOCATION AREA NO. I SPECIAL FUND (THE "ALLOCATION FUND ") South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) E Commission approval requested for Resolution No. 1690 of the South Bend Redevelopment Commission determining its intent to pay certain expenses incurred for local public improvements in or serving the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) from the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) Special Fund. Jon Hunt stated that the resolution states the Commission's intent to appropriate $1,800,000 of Tax Increment to pay for local public improvements in the South Bend Central Development Area, and sets a public hearing for July 16, 1999, at 10:00 a.m. Upon a motion by Mr. Faccenda, seconded Mr. Blake and unanimously carried, the Commission adopted Resolution No. 1690 of the South Bend Redevelopment Commission determining its intent to pay certain expenses incurred for local public improvements in or serving the South Bend Central Allocation Area (South Bend Allocation Area No. 1 A) from the South Bend Central Allocation Area (South Bend Allocation Area No. 1 A) Special Fund. H: \WPDATA \C0MMSN\062599.MIN 14 COMMISSION ADOPTED RESOLUTION NO. 1690 OF THE SOUTH BEND REDEVELOPMENT COMMISSION DETERMINING ITS INTENT TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. IA) FROM THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. IA) SPECIAL FUND. South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) g. Commission approval requested for Resolution No. 1694 Approving a Modification to and Reducing the Annual Rentals on the Lease for the Downtown Property Acquisition Project and Approving the Execution of an Addendum to the Lease. Randy Rompola, Baker and Daniels, stated the City of South Bend applied for the Section 108 Loan Program. At that time, the City planned to use Tax Increment Finance and Economic Development Income Tax to repay the Section 108 Loan. The Redevelopment Authority and Commission entered into a Lease, which would allow the use of TIF and EDIT revenues. The Lease arrangement allows the Redevelopment Commission to use TIF and EDIT revenues its receives on an annual basis to make payments to the Redevelopment Authority. The Redevelopment Authority would then use the TIF and EDIT revenues to repay the Section 108 Loan. He also stated that when the Lease was originally adopted, it provided for a not- to- exceed maximum Lease Rental Payment. The Section 108 Program sold the City's notes to another entity and the City has closed on those notes, and the interest rate has been determined. The Lease Rental amount has been reduced, and section three of the attached Addendum sets the maximum Lease Rental Payment at H: \WPDATA \COMMSN\062599.MIN 15 South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) g. continued... $104,580 per year in equal semi - annual installments. The Addendum to the Lease was amended because: (1) In the first four years, the Commission will make lease payments on the Studebaker project. The Lease Rental payment will increase in the year 2003, which corresponds with the property acquisition at the corner of Main and Jefferson Streets. As a result of the Lease Rental payment on the latter, the Section 108 loan will begin to be repaid starting in the year 2003; (2) The second purpose for amending the Lease is to amend Section 12 of the Lease, which contains the Option to Purchase. The Option to Purchase allows the Commission to, anytime it has sufficient revenues, to payoff outstanding debts. The outstanding debt would be the Section 108 Loan, which relates to the Main and Jefferson site. The Commission could exercise the Option to Purchase and take title to the property. If the Commission should decide to enter into a development agreement or sublease with a potential developer regarding the Main and Jefferson site, in particular, then the Commission's Option to Purchase could be assigned to the potential developer or sublessee. In the event the sublessee wants to acquire the Main and Jefferson site, some time in the future, the developer or sublessee could do so by exercising the Option to Purchase; in H: \WPDATA \C0MMSN\062599.MIN 16 South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) g. continued... which, the Redevelopment Commission, through the Lease with the Redevelopment Authority, would pay off the Section 108 Loan. Ms. Schwartz stated that the word "installments" on page 1 of the Addendum needs to be inserted. Upon a motion by Mr. Blake, seconded by Mr. Faccenda and unanimously carried, the Commission approved the amendment to the Addendum to insert the word "installments" on page 1 of the Addendum. Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission adopted Resolution No. 1694 Approving a Modification to and Reducing the Annual Rentals on the Lease for the Downtown Property Acquisition Project and Approving the Execution of an Addendum to the Lease. h. Commission approval requested for Resolution No. 1695 setting the Fair Re -Use Value of Property in the Sample -Ewing Development Area. (Disposition Parcel 5) HAWPDATATOMMSM062599.MIN 17 COMMISSION ADOPTED RESOLUTION NO. 1694 APPROVING A MODIFICATION TO AND REDUCING THE ANNUAL RENTALS ON THE LEASE FOR THE DOWNTOWN PROPERTY ACQUISITION PROJECT AND APPROVING THE EXECUTION OF AN ADDENDUM TO THE LEASE South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) h. continued... Jon Hunt stated that items 6.h., 6.i. and 6.j. are related. He also stated that Resolution No. 1695 refers to the lot known as Disposition Parcel 5 at the northwest corner of Main and Sample Streets in the Studebaker Corridor area and is approximately 41,000 sf. The resolution also sets two fair re -use values for the property. The two minimum fair re -use values are $15,725 for industrial use and $33,550 for commercial use. Upon a by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission adopted Resolution No. 1695 setting the Fair Re -Use Value of Disposition Parcel 5 in the Sample - Ewing Development Area. i. Commission approval requested for Bid Specifications and Design Guidelines for Disposition Parcel 5 in the Sample -Ewing Development Area. Jon Hunt stated that the staff recommends revising items nine through 15, by replacing the word "will" with the word "may." Mr. Faccenda made a motion to amend the Bid Specifications and Design Guidelines. The motion was seconded by Mr. Blake and unanimously carried. CHAWPDATATOMMSM062599.MIN 18 COMMISSION ADOPTED RESOLUTION NO. 1695 SETTING THE FAIR RE -USE VALUE OF DISPOSITION PARCEL 5 IN THE SAMPLE -EWING DEVELOPMENT AREA South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) i. continued... Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission approved the Bid Specifications and Guidelines for Disposition Parcel 5 in the Sample -Ewing Development Area, as amended. j. Commission authorization requested to publish Notice of Intended Sale of Property in the Sample -Ewing Development Area with publication dates of July 9, 1999, and July 16, 1999, and receipt of bids at 10:00 a.m. on August 6, 1999. Upon a motion by Mr. Blake, seconded by Mr. Faccenda and unanimously carried, the Commission authorized the Director to publish the Notice of Intended Sale of Property in the Sample -Ewing Development Area with publication dates of July 9, 1999, and July 16, 1999, and receipt of bids at 10:00 a.m. on August 6, 1999. k. Commission approval requested for Lease with Esprit Decor for property located in the South Bend Central Development Area. Ms. Schwartz asked that item 6.k. be tabled because she has a conflict of interest regarding this item and cannot vote on it. Three Commissioners are needed to vote on an agenda item and there were only two Commissioners ILHAWPDATATOMMSM062599.MIN 19 COMMISSION APPROVED THE BID SPECIFICATI AND FOR DISPOSITION PARCEL 5 IN THE SAMP EWING DEVELOPMENT AREA, AS AMENDED COMMISSION AUTHORIZED DIRECTOR TO THE PUBLISH THE NOTICE OF INTENDED SALE OF PROPERTY IN THE SAMPLE - EWING DEVELOPMENT AREA WITH PUBLICATION DATES OF JULY 9, 1999, AND JULY 16, 1999, AND RECEIPT OF BIDS AT 10:00 A.M. ON AUGUST 6, 1999 South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) k. continued... voting on this particular agenda item. There were no objections and item 6.k. was tabled 1. Commission approval requested for proposal from CFH Landscape Services for professional services in the Sample -Ewing Development Area. Ms. Schwartz asked that item 6.1. be tabled because she has a conflict of interest regarding this agenda item and cannot vote on it and only two Commissioners were present today that could vote on this particular item and three votes are needed. m. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property at 619 N. Sherman. (Daniel J. Kois) Jon Hunt stated that the Certificate of Waiver forgives $1,763.47 as of January 5, 1999. Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rehab Loan Program for property at 619 N. Sherman. (Daniel J. Kois) CW HAWPDATA \C0MMSN\062599.MIN 20 ITEM 6.K. WAS TABLED ITEM 6.L. WAS TABLED COMMISSION APPROVED THE CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY AT 619 N. SHERMAN (DANIEL J. KOIS) South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) n. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property at 209 E. Eckman. (Scott & Lori Barker) Jon Hunt stated that the loan is in the amount of $4,100 at 8% interest for 8 years with monthly payments of $57.96. The grant is in the amount of $979.00. Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property at 209 E. Eckman. (Scott & Lori Barker) o. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property at 1710 N. Brookfield. (Gary Vandevelde) Jon Hunt stated that the loan is in the amount of $3,400 at 0% interest for 3 years with monthly payments of $94.44. The grant is in the amount of $3,23.00. Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property at 1710 N. HAWPDATA \C0MMSN\062599.MIN 21 COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY AT 209 E. ECKMAN. (SCOTT & LORI BARKER) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY AT 1710 N. BROOKFIELD. (GARY VANDEVELDE) South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 Brookfield. (Gary Vandevelde) p. Staff report on disposition of property in the West Washington- Chapin Development Area. Jon Hunt stated that counter offer received from Barbara Luckett in the amount of $33,500 was for three vacant, commercial lots on Western Avenue. The staff recommends accepting the counter offer. Upon a motion by Mr. Blake, seconded by Mr. Faccenda and unanimously carried, the Commission accepted the counter offer in the amount of $33,500 for the three vacant, commercial lots on Western Avenue in the West Washington - Chapin Development Area. q. Staff report on Design Review Issues in the Airport Economic Development Area. Owen Rock, Economic Development Specialist, stated that a letter was received yesterday from Dale Miller, Dale's Service Center, regarding signage on his new 20,000 sf building on Bendix Drive. Mr. Rock stated that the size of the lettering does not meet design guidelines. The size Mr. Miller wants is 25.18 ". The design guidelines for the Airport Economic Development Area calls for lettering not higher than 18 ". The staff recommends not approving the height of the lettering. CHAWPDATA \C0MMSN\062599.MIN 22 COMMISSION ACCEPTED THE COUNTER OFFER IN THE AMOUNT OF $33,500 FOR THREE VACANT, COMMERCIAL LOTS ON WESTERN AVENUE IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) q. continued... Mr. Miller stated that the reasons why he wants the letters on his building 25.18" is because driving south on Bendix Drive at 40 to 45 mph, it would be hard to distinguish his building until the point of "reaching" it. He presented a colored drawing of the lettering and sign to the Commission for its consideration. Ms. Schwartz stated that the Redevelopment Commission is not an appeals board and that the City has a Design Review Committee for the Airport Economic Development Area. She also stated that the Redevelopment Commission just received his letter yesterday and has not had a chance to review all issues regarding the height of the lettering. Ms. Schwartz stated that the Commission will have the staff direct Mr. Miller to the appropriate body, which handles an appeal of this nature. r. Staff report on Design Review Issues in the South Bend Central Development Area. There was no staff report. THERE WAS NO STAFF REPORT s. Staff report on disposition of property in the Airport Economic Development Area. HAWPDATA \C0MMSN\062599.MIN 23 South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) Robert Case, Economic Development Specialist gave the following staff report. He stated that a bid was received from Dynamic Industries for purchase and development of Lots 7 and 8 in the U.S. 31 Industrial Park Subdivision. The proposed purchase price is $269,500 for the 7.7 acre site or $35,000 per acre. Mr. Case stated that the proposed purchase price does not meet the offering price of $40,000 per acre. Dynamic Industries did submit the required faithful performance guaranty of 10 percent of the purchase price ($26,900) and a schedule of construction. Construction is expected to begin in June 1999, with completion by November 1999. Dynamic Industries proposes to build a 50,000 sf metal building with wainscoting. Mr. Case stated that the metal building is not allowed under the covenants and all new buildings in the U.S. Industrial Park Subdivision must be all masonry. The staff recommends working with Dynamic Industries on redesigning the building to meets all design requirements or assist them in finding an alternative site. HAWPDATA \COMMSN\062599.MIN 24 South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 6. NEW BUSINESS (CONT.) s. continued... The highest standards for design and landscaping should be required because this will be the first building in the U.S. 31 Industrial Park located along the St. Joseph Valley Parkway. The staff feels that this development will set the tone for all future development in that area. Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission approved the sale of Lots 7 and 8 in the U.S. 31 Industrial Park Subdivision to Dynamics Industries and directed the staff work with Dynamic Industries on the redesign of its building. 7. PROGRESS REPORTS There were no Progress Reports. THERE WERE NO PROGRESS REPORTS 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for July 2, 1999, at 10:00 a.m. HAWPDATA \C0MMSN\062599.MIN 25 South Bend Redevelopment Commission Rescheduled Regular Meeting - June 25, 1999 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Faccenda made a motion that the meetin djourned. Mr. Blake rZ e ing was a Robert W. Hunt, President HAWPDATATOMMSM062599.MIN 26 ADJOURNMENT n R. Hunt, Director