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HomeMy WebLinkAboutRM 11-19-99r SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING November 19, 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 Mr. Phil J. Faccenda, Secretary Ms. Marcia Jones 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 Mr. Robert Case, Economic Development Specialist Ms. Hedy Robinson, Economic Development Specialist Mrs. Michele Bush, Economic Development Specialist Business Assistance: Ms. Cassandra Phillips, Economic Development Specialist Others: Mr. Kevin Butler Mr. John Becker, Apex Properties, Inc. Mr. Ed Fisher Mr. Steve Ellison, Stone Real Estate Group Mr. Jim Elgin, Uniroyal Techology Mr. Bill Panst Mr. Tom Ditmer 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of November 5, 1999. n -I- South Bend Redevelopment Commission Regular Meeting - November 19, 1999 2. APPROVAL OF MINUTES (CONT.) Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Minutes of the Regular Meeting of November 5, 1999. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF NOVEMBER 5, 1999. Redevelopment Commission Claims submitted November 19, 1999 for approval. 212 CDBG COMMUNITY DEVELOPMENT Jerome E. Michaels $2,800.00 South Bend Water Works $16.67 Meridian Title Corporation $150.00 Fisher Land Surveying Service Inc. $450.00 Business District, Inc. $1,303.65 Alltel $73.74 The Adam's Mark $409.40 Jenny Hullinger $25.70 Delta Airlines $803.12 American Electric Power $33.05 Ameritech $27.61 General Fund - Telephone $359.04 324 FUND Majority Builders, Inc. $13,950.00 Abonmarche Consultants of Indiana L.L.C. $8,900.00 Site Scapes Inc. $202.29 Douglas L. Carpenter & Associate, Inc. $325.00 Shamrock Net Design $125.00 Small Inc. $22,900.00 Rieth -Riley Construction $192,575.00 Small Inc. $326,992.47 Trivaco $1000.00 414 SAMPLE -EWING FUND CFH Landscape Services $6,162.62 D. L. Carpenter Appraisers $600.00 Appraisal Group, Inc. $1,200.00 -2- South Bend Redevelopment Commission Regular Meeting - November 19, 1999 3. APPROVAL OF CLAIMS (CONT.) 414 SAMPLE -EWING FUND Abonmarche Consultants of Indiana L. L. C. 420 SBDCA GENERAL ACCOUNT CFH Landscape Services Big C Lumber W. W. Grainger All Phase Electric CB /Richard Ellis /Sturges Bradley G. W. Burkheimer AEP South Bend Water Works NIPSCO 619 BLACKTHORN Meadowbrook Golf Group, Inc. Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission �r approved the Claims submitted November 19, 1999, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS $1,600.00 $2,889.00 $16.72 $104.42 $252.00 $1,087.29 $20.40 $493.44 $440.14 $56.33 $7,450.00 COMMISSION APPROVED THE CLAIMS SUBMITTED NOVEMBER 19, 1999, AND ORDERED HE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS a. Staff report on disposition of property in the Sample -Ewing Development Area. Mrs. Kolata stated that the two Bids received on November 5, 1999, relative to Disposition Parcel #5 at the corner of Main and Sample Streets.were from Apex Properties, Inc. and -3- South Bend Redevelopment Commission Regular Meeting - November 19, 1999 6. NEW BUSINESS (CONT.) a. continued... Richard L. Best. At that time the Redevelopment Commission directed the staff to review both proposals and to give their recommendation today. Mrs. Kolata presented the following staff report to the Commission for its consideration. The proposals were evaluated based on specific criteria outlined in the proposal documents and forms for land disposition provided to the Bidders. Those criteria were identified as follows: (1) The size and character of the improvements proposed by the Bidder to be constructed on the property, the Bidder's plans and ability to improve the real estate with reasonable promptness, whether the real estate, when improved, will be sold or rented, the Bidder's propose sale or rental prices, and any factors which will assure the Commission that the sale or lease, if made, will further carry out the Development Plan and will best serve the interest of the community, both from the standpoint of human and economic welfare; (2) The degree to which the proposal meets the objectives of the Development Plan for the Development Area prepared by the Department of Redevelopment and approved by the Redevelopment Council, Area Plan Commission and the Common Council; (3) The financial responsibility, qualifications, experience and ability of the Bidder to finance and complete the development; (4) Additional investment proposed, which best implements the Downtown or East Bank Plans; (5) The ME South Bend Redevelopment Commission Regular Meeting - November 19, 1999 6. NEW BUSINESS (CONT.) a. continued... ability of the Bidder to work with the Urban Enterprise Association, Zone Resident Employment Program; (6) The ability of the Bidder to ensure that there will be no sale of alcoholic beverages as a result of the proposed improvements; and (7) The proposal, which will provide the Commission with the best possible development, based on the price offered for the property and consistency with the preceding objectives. The staff presented the following recommendation to the Commission for its consideration: The Redevelopment Commission has stated that it reserves the right to choose the proposal which provides the Commission with "the best possible development, based on the price offered for hte property and the consistency with the identified objectives." Much of the information requested by the Commission in order to make their decision was not provided by Apex Properties, Inc. in their proposal. This lack of information made it difficult for the staff to make a direct comparison between the two bids. The bid submitted on behalf of Richard L. Best, was thorough in providing the requested information. Based on the criteria identified above and in the bid packet, it is the opinion of staff that this bid best meets the objectives identified by the Commission. The staff recommendation is to accept the bid submitted by Richard L. Best. This recommendation is contingent on the following items: (1) The Bidder must provide letters of support from adjacent property owners -5- South Bend Redevelopment Commission Regular Meeting - November 19, 1999 6. NEW BUSINESS (CONT.) a. continued... regarding the proposed vacation of Tutt Street, or a revised site plan to be approved by the Commission should the vacation result in opposition. This should be accomplished prior to final closing on the property; (2) The caliper of trees to be provided, along with the size of other plants, must meet the guidelines specified for new plant materials to be planted in the Studebaker Corridor; (3) The final color of brick proposed for the building must be indicated and approved based on its consistency with the colors identified in the plan elevation; (4) The final proposed sign plan conforming with the Studebaker Corridor Design Guideline requirements. Mrs. Kolata stated that there was a lot of information provided by Richard L. Best, which was not provided by Apex Properties, Inc. She also stated that Apex Properties's proposed site plan did not appear to meet the parking requirements based on the size of the development and the Parking Ordinance. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved the Sale of Property to Richard L. Best, subject to the contingencies stated in the staff recommendation for the sale of Disposition Parcel #5 at the corner of Main and Sample Streets in the Sample -Ewing Development Area. In South Bend Redevelopment Commission Regular Meeting - November 19, 1999 6. NEW BUSINESS (CONT.) b. Commission approval requested for Resolution No. 1716 approving an application for real property tax deduction for property at 2001 West Washington Street in the West Washington- Chapin Development Area. (Uniroyal Technology Corporation) Cassandra Phillips presented the following staff report to the Commission for its consideration. Uniroyal Technology Corporation is a manufacturer of adhesives and sealants. Raw materials are mixed in churns to produce the adhesives and sealants. High volume adhesives are pumped into holding tanks and then packaged in 5- gallon pails or 1- gallon cans on automatic packaging lines. Sealants are packed in cartridges or as requested by the customer. This project calls for the construction of a 18,000 square foot addition to provide additional space for raw material and finished goods storage. The estimated cost of the project is $396,250. This addition will eliminate rented space and provide for future growth. Per the petition, it is estimated that this project will create three new, permanent jobs within the first year, representing a new annual payroll of $91,155 and will maintain 124 existing permanent full -time jobs with an annual payroll of $5,076,772. -7- South Bend Redevelopment Commission Regular Meeting - November 19, 1999 6. NEW BUSINESS (CONT.) b. continued... A review of the tax abatements previously granted finds that the petitioner has been granted one previous tax abatement. A personal property tax abatement was granted. 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 personal property tax abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that Uniroyal Technology Corporation meets the qualifications for a ten -year real property tax abatement under Industrial Development in Urban Enterprise Zone and Redevelopment Blighted Areas. Using the estimated project cost of $396,250, the taxes generated over the 10 -year period will be approximately $199,909. Taxes abated over the ten -year period will be approximately $98,955. Taxes still paid with the abatement over the ten -year period will be approximately $100,954. -8- South Bend Redevelopment Commission Regular Meeting - November 19, 1999 6. NEW BUSINESS (CONT.) b. continued... Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1716 approving an application for real property tax deduction for property at 2001 West Washington Street in the West Washington - Chapin Development Area. (Uniroyal Technology Corporation) c. Commission approval requested for Lease with Laura Lee's, Inc. for property in the South Bend Central Development Area. (Leighton Plaza Retail Space) Mrs. Kolata asked permission to table item 6.c. There was no objection and item 6.c. was tabled. d. Staff report on disposition of property in the South Bend Central Development Area. (Leighton Plaza Retail Space #5) Mrs. Kolata stated that a proposal was received from Brad Toothaker, CB Richard Ellis /Sturgis Bradley, on behalf of Cort Furniture Rental the proposed tenant. Cort Furniture proposes to lease approximately 1,500 sf in space #5 of the Leighton Plaza Retail Space at 123 S. Michigan St. The proposed lease term is five years and six months with two five -year options to renew the lease. The base rent will be $9.50 for the first five years, $10.40 for the first option period and $11.40 for the second option period. The first six months of the lease will be at no rent. COMMISSION ADOPTED RESOLUTION NO. 1716 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY AT 2001 WEST WASHINGTON STREET IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA. (UNIROYAL TECHNOLOGY CORPORATION) ITEM 6.C. WAS TABLED South Bend Redevelopment Commission Regular Meeting - November 19, 1999 6. NEW BUSINESS (CONT.) d. continued... This will be an allowance for the tenant improvements that Cort Furniture will be making to the property. Mrs. Kolata also stated that Cort Furniture Rental has agreed to the common area maintenance charge and the real estate taxes. Cort Furniture will have furniture in the proposed property as well as a catalog of the different kinds of furniture which Cort rents. Cort leases out executive- or contemporary - apartment type of furniture. The staff recommends approving the proposal from Cort Furniture to rent the 1,500 sf space in the Leighton Plaza Retail Space. Mrs. Kolata stated that Cort Furniture will be allowed to rent some of the parking spaces in the Leighton Plaza Parking Garage but no free parking will be provided to Cort Furniture. Upon a motion by Ms. Jones, seconded by Mr. Donoho and unanimously carried, the Commission approved the proposal from Cort Furniture to lease 1,500 sf of retail space at 123 S. Michigan in the South Bend Central Development Area. e. Commission approval requested for Resolution No. 1717 accepting the transfer of real property from the South Bend Redevelopment Authority. (Blackthorn Corporate Park) -10- COMMISSION APPROVED THE PROPOSAL FROM CORT FURNITURE TO LEASE 1,500 SF OF RETAIL SPACE AT 123 S. MICHIGAN IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - November 19, 1999 6. NEW BUSINESS (CONT.) e. continued... f. Mrs. Kolata stated that items 6.e. and 61 are closely related. The Redevelopment Authority purchased the land in the Blackthorn Corporate Park and the Redevelopment Commission is lease purchasing the land from the Authority. The Commission needs to exercise its option to own two lots in the Blackthorn Corporate Park which are to be sold. Resolution 1717 transfers Lot 6 in the Blackthorn Corporate Park from the Redevelopment Authority to the Redevelopment Commission. Subsequently Lot 6 will be sold to J.B. Investments in connection with its project. Resolution No. 1718 transfers Lot 2 to the Redevelopment Commission. Subsequently, the property will be sold to Michiana Crescent IV. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1717 accepting the transfer of real property from the South Bend Redevelopment Authority. (Blackthorn Corporate Park) Commission approval requested for Resolution No. 1718 accepting the transfer of real property from the South Bend Redevelopment Authority. (Blackthorn Corporate Park) Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1718 accepting the transfer of real property from the South Bend Redevelopment Authority. (Blackthorn Corporate Park) -11- COMMISSION ADOPTED RESOLUTION NO. 1717 ACCEPTING THE TRANSFER OF REAL PROPERTY FROM THE SOUTH BEND REDEVELOPMENT AUTHORITY (BLACKTHORN CORPORATE PARK) COMMISSION ADOPTED RESOLUTION NO. 1718 ACCEPTING THE TRANSFER OF REAL PROPERTY FROM THE SOUTH BEND REDEVELOPMENT AUTHORITY (BLACKTHORN CORPORATE PARK) South Bend Redevelopment Commission Regular Meeting - November 19, 1999 6. NEW BUSINESS (CONT.) g. Commission approval requested for Resolution No. 1719 approving the transfer of real property to the City of South Bend, Indiana. (West Washington- Chapin Development Area) Mrs. Kolata stated that the Commission owns four lots on Western Avenue between the Elks Lodge and the Pentecostal Cathedral. Those four lots need to be transferred to the Board of Public Works which will subsequently transfer the lots to South Bend Heritage Foundation. South Bend Heritage Foundation will have the lots cleared of debris, paved and landscaped and converted into an off - street parking lot according to already prepared plans. The Elks Lodge and Pentecostal Cathedral will share the lots and maintain them. The cost of the improvements will be born equally by Pentecostal Cathedral and Elks Lodge. South Bend Heritage Foundation will enter into a long -term lease with both Pentecostal Cathedral and the Elks Lodge for the use of the off - street parking lot. In the event that either of the organizations referenced above plans to expand onto any of the parcels, South Bend Heritage Foundation will conform to the design guidelines for that area. Upon a motion by Ms. Jones, seconded by Mr Donoho and unanimously carried, the Commission adopted Resolution No. 1719 approving the transfer of real property to the City of South Bend, Indiana. (West Washington- Chapin Development Area) -12- COMMISSION ADOPTED RESOLUTION NO. 1719 APPROVING THE TRANSFER OF REAL PROPERTY TO THE CITY OF SOUTH BEND, INDIANA (WEST WASHINGTON - CHAPIN DEVELOPMENT AREA) South Bend Redevelopment Commission Regular Meeting - November 19, 1999 6. NEW BUSINESS (CONT.) h. Commission approval requested for Lease - Assignment Consent Agreement in connection with property in the Airport Economic Development Area. Brian Steinke, attorney, stated that the Redevelopment Commission leased a piece of property to Gainey Realty which is adjacent to the property which Gainey Realty and Investment Corporation owns. Gainey Realty converted the parcel of land into a landscaped parking lot. Gainey Realty now wants to transfer all of its rights and interests under the Lease to the Girl Scouts of Singing Sands Council, Inc. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved the Lease - Assignment Consent Agreement in connection with property in the Airport Economic Development Area. i. Commission approval requested for Parking Agreement Between Memorial Health & Lifestyle Center and the City of South Bend Redevelopment Commission. Mrs. Kolata stated that the Parking Agreement is related to the Memorial Health & Lifestyle Center. The Parking Agreement delineates the arrangement under which parking spaces will be set aside for the Health & Lifestyle Center members. Memorial Health & Lifestyle Center is paying a monthly fee for 217 parking spaces. Memorial Health & Lifestyle Center has 2,000 passes for the 217 spaces. The equipment in the parking garage monitors how many people -13- COMMISSION APPROVED THE LEASE - ASSIGNMENT CONSENT AGREEMENT IN CONNECTION WITH PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - November 19, 1999 6. NEW BUSINESS (CONT.) i. continued... using those passes are in the garage at any one time. If Memorial Health & Lifestyle Center exceeds the use of 217 spaces, then it is charged an hourly rate for the actual time and number of spaces over 217. Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Parking Agreement Between Memorial Health & Lifestyle Center and the City of South Bend Redevelopment Commission. j. Commission approval requested for proposal from NIPSCO for professional services in the Airport Economic Development Area. (Gas Line Extension) Mrs. Kolata stated that the gas line on Blackthorn Court and the gas line on Crescent Circle need to be extended. The proposal received from NIPSCO is in the amount of $11,475 for the extension of the gas line on Blackthorn Court and $3,355 for the extension of the gas line on Crescent Circle. She also stated that the Redevelopment Commission will be reimbursed for the cost of the gas lines extension as other users "tie in" to the main gas lines. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission accepted the proposal from NIPSCO in the amount of $3,355 and $11,475 for professional services in the Airport Economic Development Area. (Gas Line -14- COMMISSION APPROVED THE PARKING AGREEMENT BETWEEN MEMORIAL HEALTH & LIFESTYLE CENTER AND THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION COMMISSION ACCEPTED THE PROPOSAL FROM NIPSCO IN THE AMOUNT OF $3,355 AND $11,475 FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (GAS LINE EXTENSION) South Bend Redevelopment Commission Regular Meeting - November 19, 1999 Extension) k. Commission approval requested for Perpetual Easement Across Property in the Airport Economic Development Area. Mrs. Kolata stated that a Perpetual Easement Across Welsh, Inc.'s property proximate to Brick Road and Ameritech Drive is needed. The easement will allow patrons to cross Welsh, Inc's property in order to gain access to the parcel of land contiguous to Welsh, Inc.'s property. Upon a motion by Ms. Jones, seconded by Mr. Donoho and unanimously carried, the Commission approved the Perpetual Easement Across Property in the Airport Economic Development Area. I. Commission approval requested for Amendment to Bylaws of the South Bend Redevelopment Commission. Mrs. Kolata stated that the Amendment to the Bylaws will allow the Vice President to perform the duties of the Secretary in the absence of the Secretary. COMMISSION APPROVED THE PERPETUAL EASEMENT ACROSS PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA Upon a motion by Ms. Jones, seconded by Mr. COMMISSION APPROVED THE AMENDMENT OF Hunt and unanimously carried, the BYLAWS OF THE SOUTH BEND REDEVELOPMENT Commission approved the Amendment of COMMISSION Bylaws of the South Bend Redevelopment Commission. m. Staff report on disposition of property in the Sample -Ewing Development Area. (Parcel #25: Lafayette and Indiana) -15- South Bend Redevelopment Commission Regular Meeting - November 19, 1999 6. NEW BUSINESS (CONT.) m. continued... Mrs. Kolata stated that Ditmer Trucking Company, LLC submitted a proposal for the property at the corner of Lafayette and Indiana. Ditmer Trucking proposes to purchase the property for $9,000 for light industrial use. The 10 percent ($900) performance guaranty was also submitted. Mrs. Kolata read Ditmer Trucking's narrative description: Ditmer Trucking is a U.S. Mail Service Carrier. As such Ditmer is involved in the pick up and delivery ofsorted mail containers from regional postal cetners and local Post Offices. They will be using the facility as their office and maintenance facility. Occasional parking of twenty -two and twenty - four foot panel delivery trucks, as well as semi - tractors will take place at the facility. The facility will incorporate, corporate business offices, employee break room and related uses. The building will be 5,600 sf, with 15 parking spaces. Landscaping will be in accordance with design review guidelines for this area. Construction is to begin in mid - February and completion will be before June 2000. Ditmer Trucking Company, LLC submitted its financial statements and a site plan. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved the Sale of Land to Ditmer Trucking Company, LLC in connection with property in the Sample -Ewing Development Area. (Parcel #25: Lafayette and Indiana) -16- COMMISSION APPROVED THE SALE OF LAND TO DITMER TRUCKING COMPANY, LLC IN CONNECTION WITH PROPERTY IN THE SAMPLE - EWING DEVELOPMENT AREA. (PARCEL #25: LAFAYETTE AND INDIANA) South Bend Redevelopment Commission Regular Meeting - November 19, 1999 7. PROGRESS REPORTS Mrs. Kolata reported that Hardie Blake has resigned from the Redevelopment Commission, and she thanked Mr. Blake for the hard work he has done for the Redevelopment Commission and City of South Bend. She also reported that the Blackthorn Golf Course Joint Committee met earlier this week. The projections for the year were good: there were 30,000 rounds of golf played and Blackthorn Golf Course's expenses were "held down." Mrs. Kolata reported that Schafer Gear, which has moved to Nimtz Parkway, has its opening and dedication today. She also reported that Paula Auburn will be the recipient of the F. Jay Nimtz Award for her exemplary voluteerism in the community. Mrs. Kolata also reported that she and Alex Koenig, Carl Littrell and Brian Steinke will be attending the National EPA Brownfields Conference in Dallas, Texas on December 8, 1999. 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is scheduled for December 17, 1999, at 10:00 a.m. -17- h d South Bend Redevelopment Commission Regular Meeting - November 19, 1999 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 and the meeting w rimed at 10:42 a rn obert W. Hunt, Presi en -18- ADJOURNMENT Arm E. Kolata, Director