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HomeMy WebLinkAboutRM 07-02-99SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING July 2, 1999 1308 County -City Building 10:00 a.m. 227 West Jefferson Boulevard Presiding: Robert W. Hunt, President South Bend, Indiana 1. ROLL CALL 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: Mr. Jon Hunt, Executive 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. Andy Laurent, Intern Mr. Josh Howell, Intern Business Assistance: Ms. Nancy Van Scoyk, Economic Development Specialist Bureau of Housing: Ms. Mary Beth Thompson, Assistant Director Media: Ms. Nancy Sulok, South Bend Tribune Others: Pastor Ralph Parker, River of Life Family Church Co- Pastor Margaret Parker, River of Life Family Church Ms. Fannie Mae Coates, River of Life Family Church Ms. Angela Washington, River of Life Family Church Ms. Mosetta Forrest, River of Life Family Church Pastor Jan Hall, River of Life Family Church Ms. Sandra Gandy, River of Life Family Church Ms. Lelin Chantelle White, River of Life Family Church Ms. Gloria Foster, River of Life Family Church HAWPDATA \C0MMSN\070299.MIN -I- South Bend Redevelopment Commission Regular Meeting - July 2, 1999 5. NEW BUSINESS a. Commission approval requested for Resolution No. 1696 approving an application for real property tax deduction for property at 4747 and 4775 Ameritech Drive in the Airport Economic Development Area. (South Bend Redevelopment Commission on behalf of Dynamic R.E.H.C., Inc.) Nancy Van Scoyk presented the following staff report to the Commission for its consideration. Dynamic is a thirteen - year -old machine shop, which performs welding and machine services for the capital goods market. Dynamic purchased the former "Buds Machine Co." located in South Bend in 1994. The headquarters for the company is located in Cincinnati, Ohio. Dynamic proposes to construct a 50,000 sq ft machine /welding shop in the U.S. 31 Industrial Park. The total estimated cost of construction is $1,900,000. The company cannot satisfy its growth operations in its current Northern Indiana facility. Dynamic also proposes to purchase and install new equipment in the new facility. The total estimated cost of equipment is $1,650,000. 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 HAWPDATA \C0MMSN\070299.MIN -3- South Bend Redevelopment Commission Regular Meeting - July 2, 1999 Ms. Tameca Tilman, River of Life Family Church Ms. Antoinette Martinez, River of Life Family Church Mr. Roberto Martinez, River of Life Family Church Ms. Cynthia Grier, River of Life Family Church Mr. Sam Marshall, River of Life Family Church Ms. Julie Husband, River of Life Family Church Ms. Eugenia Dozier, River of Life Family Church Ms. Anna Overton, River of Life Family Church Mr. John Johnson, River of Life Family Church Ms. Nakeya Frazier, River of Life Family Church Ms. Roselyn D. Williams, River of Life Family Church Mr. Curtis Trent, River of Life Family Church Mr. Sherman Dean, River of Life Family Church Mr. Melvin Townsend, River of Life Family Church Ms. JoAnn Reed, River of Life Family Church Ms. Yvette White, River of Life Family Church Mr. Phillip Jackson, River of Life Family Church Mr. Andre Anderson, River of Life Family Church Ms. Lorraine Brown, River of Life Family Church Mr. George Adler, Community and Economic Development Mr. Steve Ellison, Stone Real Estate Group Mr. Hunt noted that the Executive Session will continue immediately following adjournment of the Regular Meeting. 2. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted July 2, 1999, for approval. 420 SBCDA GENERAL ACCOUNT CB Richard Ellis /Sturges Bradley 3. COMMUNICATIONS There were no Communications. 4. OLD BUSINESS There was no Old Business. HAWPDATATOMMSM070299.MIN $1,767.23 THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS -2- South Bend Redevelopment Commission Regular Meeting - July 2, 1999 5. NEW BUSINESS (CONT.) a. continued... payroll of $80,000 and will maintain 39 existing, permanent, full -time and part-time jobs representing an annual payroll of $1,400,000; however, by the end of the third year, a total of 15 new, permanent, full -time jobs will be created. A review of the tax abatements previously granted, finds that Dynamic has not been granted any previous tax abatements. The building commissioner has reviewed the petition and has found the property to be properly zoned for the proposed use. 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 and personal property tax abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that Dynamic meets the qualifications for a ten -year real property tax abatement under Industrial Development Citywide and meets the qualifications for a five -year personal property tax abatement under Tangible Personal Property Tax HAWPDATA \C0MMSN\070299.MIN -4- South Bend Redevelopment Commission Regular Meeting - July 2, 1999 Abatement. Using the estimated project cost of $1,900,000, the taxes generated over the ten -year period will be approximately $160,864. Taxes abated over the ten -year period will be approximately $132,339. Taxes paid over the ten -year period will be approximately $28,524. Upon a motion by Mr. Blake, seconded by Mr. Donoho and carried, the Commission adopted Resolution No. 1696 approving an application for real property tax deduction for property at 4747 and 4775 Ameritech Drive in the Airport Economic Development Area. (South Bend Redevelopment Commission on behalf of Dynamics R.E.H.C., Inc.) Ms. Schwartz and Mr. Faccenda abstained. b. Commission approval requested for Resolution No. 1697 approving an application for personal property tax deduction for property at 4747 and 4775 Ameritech Drive. (Dynamic Industries, Inc.) Using the estimated equipment cost of $1,650,000, the taxes generated over the ten -year period will be approximately $954,829. Taxes abated over the ten -year period will be approximately $472,640. Taxes still paid with the abatement over the ten - year period will be approximately $482,188. HAWPDATATOMMSM070299.MIN -5- COMMISSION ADOPTED RESOLUTION NO. 1696 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY AT 4747 AND 4775 AMERITECH DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (SOUTH BEND REDEVELOPMENT COMMISSION ON BEHALF OF DYNAMICS R.E.H.C., INC.) South Bend Redevelopment Commission Regular Meeting - July 2, 1999 5. NEW BUSINESS (CONT.) b. continued... Upon a motion by Mr. Donoho, seconded by Mr. Blake and carried, the Commission adopted Resolution No. 1697 approving an application for personal property tax deduction for property at 4747 and 4775 Ameritech Drive in the Airport Economic Development Area. (Dynamic Industries, Inc.) Mr. Faccenda abstained. Discussion with River of Life Family Church. Pastor Ralph Parker, Senior Pastor, River of Life Family Church, Inc., stated that the church would like to purchase the 310' x 165' parking lot at the corner of Bronson and St. Joseph Streets. He stated that he and his members feel that the parking lot and the church are a unit. Pastor Parker also stated that the church is useless without the parking lot. He stated that the church building is 95 to 96 years old, historical and has approximately 40,000 to 45,000 sf of space. The building was once used as a daycare and Christian center. There is a gymnasium and sanctuary, which seats 500 people and an auditorium, which seats 350 people. Pastor Parker stated that the building is of no use without adequate parking space. H: \WPDATA \C0MMSN\070299.MIN -6- COMMISSION ADOPTED RESOLUTION NO. 1697 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY AT 4747 AND 4775 AMERITECH DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (DYNAMIC INDUSTRIES, INC.) South Bend Redevelopment Commission Regular Meeting - July 2, 1999 5. NEW BUSINESS (CONT.) He also stated that the River of Life Family Church, Inc. has been in existence for nine years and considers itself an outreach center.. There are approximately 1,050 members. Pastor Parker stated that without the parking lot, the church will be forced to relocate to another part of the city. He stated that the majority of the members at River of Life are citizens of South Bend, Elkhart and Mishawaka. He also stated that the church partners with the Hope Rescue Mission and Salvation Army also located in the Monroe Park Area. Pastor Parker stated that River of Life Family Church, Inc. financially supports these surrounding entities on a regular basis. The Salvation Army uses the church's facilities in the summer. Pastor Parker also stated that a number of the members serve important voluntary roles in different agencies and groups in the community. He stated that if the number of members should outgrow the church's capacity, then River of Life would still use the building on Bronson and St. Joseph Street as well as its potential new facility. HAWPDATA \COMMSN\070299.MIN -7- South Bend Redevelopment Commission Regular Meeting - July 2, 1999 5. NEW BUSINESS (CONT.) Pastor Parker introduced his wife, Vice - President and Co- Pastor Margaret Parker, River of Life Family Church, Inc., to the Commission. She stated that she met yesterday with some of the Commissioners regarding the parking lot at the corner of Bronson and St. Joseph Streets. Co- Pastor Parker stated that a letter was recently sent to the Redevelopment Commission requesting that River of Life be allowed to use its own funds to repair the parking lot. She also stated that a response was received, which stated that the Redevelopment Commission was extremely concerned about River of Life spending funds on property, which it will possibly lose use of. Co- Pastor Parker stated that the River of Life Church has been holding double services in order to accommodate its growth. After receiving the response, a petition with approximately 1,000 signatures was sent to the Division of Redevelopment. She also stated that River of Life wants to purchase the lot instead of leasing it. Co- Pastor Parker stated that River of Life respects that fact the City has to consider the economical possibilities for the lot. IL HAWPDATA \COMMSN\070299.MIN -8- South Bend Redevelopment Commission Regular Meeting - July 2, 1999 5. NEW BUSINESS (CONT.) Tameca Tilman stated that she is speaking on behalf of the teenagers and youth in the community. She also stated that River of Life has made an impact on teenagers and youth of her age. Ms. Tilman stated that River of Life is a safehaven, a ministry and a place to give teenagers and youth guidance. Sherman Dean, member of River of Life, stated that he use to be addicted to drugs and has a history of incarceration. He also stated that River of Life provided him with permanent employment, which allowed him to move ahead in life. Bernice Freeman stated that she has been a member of River of Life Family Church for five years. She also stated that she is a board member of the Human Rights Commission. Minister Larry Thomas, member of River of Life, stated that some of the church members go to the St. Joseph County Jail and to prisons to assist the inmates in re- entering into society and River of Life provides a place for the inmates to go. Hardie Blake stated the Commission discussed some of the issues which were raised in the meeting yesterday with Co- Pastor HAWPDATATOMMSM070299.MIN -9- South Bend Redevelopment Commission Regular Meeting - July 2, 1999 5. NEW BUSINESS (CONT.) Margaret Parker. He also stated that the Commission is aware of River of Life's need for the parking lot. Mr. Blake stated that the Commission was prepared to lease the lot for three years to the River of Life Family Church, Inc. Since River of Life has emphasized a need to purchase the lot, the Commission would need time to discuss that further. Pastor Parker stated that River of Life would be willing to allow the City to use the parking during the hours when the lot is not being used by the church. Mr. Faccenda stated that it was AWN discussed that Pastor Parker should be brought into the development discussion regarding the Monroe Park Area. c. Commission approval requested for Lease with Esprit Decor for property located in the South Bend Central Development Area. Jon Hunt stated that Esprit Decor wants to lease the retail space fronting on Michigan Street. This is the space at 117 S. Michigan and it contains approximately 1,700 sf. He also stated that the company will be a high -end consignment furnishings store. Esprit Decor would lease the HAWPDATATOMMSM070299.MIN -10- South Bend Redevelopment Commission Regular Meeting - July 2, 1999 5. NEW BUSINESS (CONT.) c. continued... space for 42 months. There would be no rent for the first six months. For the next 12 months of the lease, the payment will be $1,219.75 a month. The lease payment will increase to $1,394 a month for the next 12 months and increase to $1,742.13 a month for the remaining term of the lease. Upon a motion by Mr. Faccenda, seconded by Mr. Blake and carried, the Commission approved the Lease with Esprit Decor for property located in the South Bend Central Development Area. (117 S. Michigan) Ms. Schwartz abstained. d. Commission approval requested for proposal for professional services in the South Bend Central Development Area. Jon Hunt stated that the proposal received form CFH Landscape Services in the amount of $2,954.50 includes: (1) Cleaning up and providing regular maintenance of the city -owned building on Sample Street ($1,515); (2) Cleaning up and removing weeds and remulching the flower islands on Dean Johnson Boulevard ($1,225); (3) Using weed control around the base of the tree rings and lay new mulch for trees on Dean Johnson Boulevard ($214.50). HAWPDAMCOMMSM070299.MIN -11- COMMISSION APPROVED THE LEASE WITH ESPRIT DECOR FOR PROPERTY LOCATED IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (117 S. MIGHIGAN) South Bend Redevelopment Commission Regular Meeting - July 2, 1999 5. NEW BUSINESS (CONT.) d. continued... Upon a motion by Mr. Blake, seconded by Mr. Donoho and carried, the Commission accepted the proposal from CFH Landscape Services for professional services in the Sample - Ewing Development Area. Ms. Schwartz abstained. e. Commission approval requested for proposal for professional services in the South Bend Central Development Area. Jon Hunt stated that three proposals were received for rehabilitation of the entryway to the Osco Drug Mart in downtown South Bend. The three proposals received were from L.L.Geans Construction Co. in the amount of $1,350, Kaser - Spraker Construction, Inc. in the amount of $1,671 and Casteel in the amount of $2,000. The staff recommends accepting the proposal from L.L.Geans. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission accepted the proposal from L.L.Geans in the amount of $1,350 for professional services in the South Bend Central Development Area. IL HAWPDATA \C0MMSN\070299.MIN -12- COMMISSION ACCEPTED THE PROPOSAL FROM CFH LANDSCAPE SERVICES FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA COMMISSION ACCEPTED THE PROPOSAL FROM L.L.GEANS IN THE AMOUNT OF $1,350 FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - July 2, 1999 5. NEW BUSINESS (CONT.) f. Commission approval requested for Re- assignment & Subordination to a Mortgage for the property at 619 N. Sherman. Mary Beth Thompson, Assistant Director of the Bureau of Housing, stated that the house at 619 N. Sherman has passed all previous inspections. The request by the purchaser is for both a re- assignment and subordination. There are three years of forgiveness remaining on the property. She also stated that there are no violations on the property Upon a motion by Mr. Faccenda, AdON seconded by Mr. Donoho and unanimously carried, the Commission approved the Re- assignment & Subordination to a Mortgage for the property at 619 N. Sherman. g. Commission authorization requested to extend utilities in the Airport Economic Development Area. Jon Hunt stated that the three proposals received were from HRP Construction in the amount of $15,838, Niezgodski Plumbing, Inc. in the amount of $14,200 and Underground Services in the amount of $10,600. Owen Rock stated that a 40,000 sf, warehouse distribution company will be developed on Olive Road and water lines need to be installed to provide C; HAWPDATMCOMMSM070299.MIN -13- COMMISSION APPROVED THE RE- ASSIGNMENT & SUBORDINATION TO A MORTGAGE FOR THE PROPERTY AT 619 N. SHERMAN South Bend Redevelopment Commission Regular Meeting - July 2, 1999 5. NEW BUSINESS (CONT.) g. continued... water to the new facility. The staff recommends accepting the proposal from Underground Services. Upon a motion by Mr. Blake, seconded by Mr. Faccenda and unanimously carried, the Commission accepted the proposal from Underground Services in the amount of $10,600 to extend utilities in the Airport Economic Development Area. h. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property at 1224 W. Grace St. (Sophie Laskowski) Jon Hunt stated that the loan is in the amount of $1,150 at 1% interest for 3 years with monthly payments of $32.45. The grant is in the amount of $1,012. Upon a motion by Ms. Schwartz, seconded by Mr. Faccenda, and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property at 1224 W. Grace St. (Sophie Laskowski) 7. PROGRESS REPORTS There were no Progress Reports. C, HAWPDATA \C0MMSN\070299.MIN -14- COMMISSION ACCEPTED THE PROPOSAL FROM UNDERGROUND SERVICES IN THE AMOUNT OF $10,600 TO EXTEND UTILITIES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY AT 1224 W. GRACE ST. (SOPHIE LASKOWSKI) THERE WERE NO PROGRESS REPORTS South Bend Redevelopment Commission Regular Meeting - July 2, 1999 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is scheduled for July 16, 1999, at 10:00 a.m. 9. ADJOURNMENT There being no further business to come ADJOURNMENT before the Redevelopment Commission, Mr. Blake made a motion that the meeting be adjourned. Ms. Schwartz seconded the moti the meeting was adjourned at :0 m: Robert W. Hunt, President Jo unt, Executive Di ILHAWPDATA \C0MMSN\070299.MIN -15-