The URL can be used to link to this page

Home My WebLink AboutSM 01-07-004, SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING January 7, 2000 10:00 a.m. Presiding: Robert W. Hunt, President iw:Z13j"riffl-t! 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 Member Absent: Legal Counsel: Ms. Marcia Jones Ms. Cheryl Greene 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 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of December 17, 1999. Upon a motion by Mr. Faccenda, seconded COMMISSION APPROVED THE MINUTES OF THE by Mr. Donoho and unanimously carried, REGULAR MEETING OF DECEMBER 17, 1999 the Commission approved the Minutes of the Regular Meeting of December 17, 1999. -1- South Bend Redevelopment Commission Special Meeting - January 7, 2000 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted January 7, 2000 for approval. 212 CDBG COMMUNITY DEVELOPMENT Ameritech AEP South Bend Water Works The County News, Inc. South Bend Tribune Champion Soft Water General Fund- Telephone Grauvogel & Associates First USA Financial Printshop Petty Cash 324 FUND Small Inc. 414 SAMPLE -EWING FUND Metropolitan Title Corp. Department of Code Enforcement Abonmarche Group Ken Herceg & Associates DLZ Indiana, Inc. Troyer Group Inc. Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Claims submitted January 7, 2000, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. -2- $27.69 $55.68 $15.56 $121.32 $79.33 $209.80 $217.07 $505.00 $97.15 $66.17 $136.00 $27,612.70 $270.00 $3,425.00 $500.00 $8,087.09 $520.83 $1,801.00 COMMISSION APPROVED THE CLAIMS SUBMITTED JANUARY 7, 2000, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Special Meeting - January 7, 2000 5. OLD BUSINESS There was no Old Business. THERE WAS NO OLD BUSINESS 6. NEW BUSINESS a. Public Hearing on Resolution No. 1730. Mrs. Kolata asked that the following items be entered into the record: Affidavits from the Tri- County News and South Bend Tribune that the Notice of Public Hearing was published in those newspapers on December 24, 1999. She also stated that the amount published on December 24, 1999, in the Tri- County News and South Bend Tribune was $3,700,000. The amount has been reduced to $2,769,698 in the final resolution. Resolution No. 1730 appropriates $2,769,698 to pay expenses incurred for local public improvements and to make lease payments for local public improvements in or serving the Airport Economic Development Area. Mr. Hunt opened the public hearing for anyone that wished to speak regarding Resolution No. 1730. There was no one who wished to speak regarding Resolution No. 1730. Mr. Hunt closed the public hearing for whatever action the Commission wished to take. -3- South Bend Redevelopment Commission Special Meeting - January 7, 2000 6. NEW BUSINESS (CONT.) b. Commission approval requested for Resolution No. 1730, a supplemental appropriation Resolution of the City of South Bend Redevelopment Commission. (Airport Economic Development Area) Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1730, a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. (Airport Economic Development Area) c. Public Hearing on Resolution No. 1731. Mrs. Kolata asked that the following items be entered into the record: Affidavits from the Tri- County News and South Bend Tribune that the Notice of Public Hearing was published in those newspapers on December 24, 1999. She also stated that the amount published on December 24, 1999, in the Tri- County News and South Bend Tribune was $1,860,000. The amount has been reduced to $1,716,101 in the final resolution. Resolution No. 1731 appropriates $1,716,101 to pay expenses incurred for local public improvements in or serving the Sample -Ewing Development Area. Mr. Hunt opened the public hearing for anyone that wished to speak regarding Resolution No. 1731. -4- COMMISSION ADOPTED RESOLUTION NO. 1730, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION (AIRPORT ECONOMIC DEVELOPMENT AREA) South Bend Redevelopment Commission Special Meeting - January 7, 2000 6. NEW BUSINESS (CONT.) c. continued... There was no one who wished to speak regarding Resolution No. 1731. Mr. Hunt closed the public hearing for whatever action the Commission wished to take. d. Commission approval requested for Resolution No. 1731, a supplemental appropriation Resolution of the City of South Bend Redevelopment Commission. (Sample -Ewing Development Area) Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1731, a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. (Sample - Ewing Development Area) e. Public Hearing on Resolution No. 1732. Mrs. Kolata asked that the following items be entered into the record: Affidavits from the Tri- County News and South Bend Tribune that the Notice of Public Hearing was published in those newspapers on December 24, 1999. She also stated that the amount published on December 24, 1999, in the Tri- County News and South Bend Tribune was $3,700,000. The amount has been reduced to $2,656,598 in the final resolution. -5- COMMISSION ADOPTED RESOLUTION NO. 1731, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION (SAMPLE -EWING DEVELOPMENT AREA) South Bend Redevelopment Commission Special Meeting - January 7, 2000 6. NEW BUSINESS (CONT.) e. continued... Resolution No. 1732 appropriates $2,656,598 to pay expenses incurred for local public improvements in or serving the South Bend Central Development Area. Mr. Hunt opened the public hearing for anyone that wished to speak regarding Resolution No. 1732. There was no one who wished to speak regarding Resolution No. 1732. Mr. Hunt closed the public hearing for whatever action the Commission wished to take. f. Commission approval requested for Resolution No. 1732, a supplemental appropriation Resolution of the City of South Bend Redevelopment Commission. (South Bend Central Development Area) Upon a motion by Mr. Faccenda, seconded COMMISSION ADOPTED RESOLUTION NO. 1730, A by Mr. Donoho and unanimously carried, SUPPLEMENTAL APPROPRIATION RESOLUTION OF the Commission adopted Resolution No. THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION (SOUTH BEND CENTRAL 1732, a supplemental appropriation DEVELOPMENT AREA) resolution of the City of South Bend Redevelopment Commission. (South Bend Central Development Area) 0 South Bend Redevelopment Commission Special Meeting - January 7, 2000 6. NEW BUSINESS (CONT.) g. Commission approval requested for Resolution No. 1733 approving an application for real property tax deduction for properties at 2801, 2802, 2807, 2808, 2813, 2814, 2817, 2820, 2821, 2825, 2901, 2902, 2905, 2906, 2909, 2912, 2916, 2917, 3001, 3019, West Calvert Street and 2239 South Prospect Street in the Sample -Ewing Development Area. (G & M Properties) Cassandra Phillips, Economic Development Specialist, presented the following staff report to the Commission for its consideration. Garden Homes intends to construct new three - bedroom, five -room homes of 1,036 sq ft, on a full 8' insulated basement. The homes will have a 12'x 20' attached garage, vinyl siding, stove, dishwasher, and vent hood and garbage disposal. The homes will be built on a minimum of 40'x 120' lots which will be seeded upon completion of the homes. The importance of this project to the city and the residents of the city is that we will be building affordable homes on in -fill lots in the City of South Bend. Estimated cost per unit is between $75,000 to $85,000 with a total estimated project cost between $1,950,000 and $2,210,000. A review of the tax abatements previously granted finds that G & M Properties has been granted several previous tax abatements. -7- South Bend Redevelopment Commission Special Meeting - January 7, 2000 6. NEW BUSINESS (CONT.) g. continued... 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 Sample -Ewing Development Area; therefore, the petition for residential real property tax abatement requires the approval of the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that G & M Properties meets the qualifications for a five -year residential tax abatement under Single Family Real Property Abatement. Using the estimated project cost of between $1,950,000 and $2,210,000, the taxes generated over the five -year period will be approximately $8,809.45, per unit. Tax abated over the five -year period will be approximately $7,418.48, per unit. Taxes still paid with the abatement over the five -year period will be approximately $1,390.97, per unit. -8- South Bend Redevelopment Commission Special Meeting - January 7, 2000 6. NEW BUSINESS (CONT.) g. continued... Upon a motion by Ms. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission adopted Resolution No. 1733 approving an application for real property tax deduction for properties at 2801, 2802, 2807, 2808, 2813, 2814, 2817, 2820, 2821, 2825, 2901, 2902, 2905, 2906, 2909, 2912, 2916, 2917, 3001, 3019, West Calvert Street and 2239 South Prospect Street in the Sample -Ewing Development Area. (G & M Properties) h. Commission approval requested for Agreement for the Lease and Development of Real Property in connection with the property at 414 W. Sample Street in the Sample -Ewing Development Area. (Studebaker AutoParts Sales Corporation) Mrs. Kolata stated that items 61. and 6.i. are related. She presented a color rendering of Studebaker Building #92 to the Commission for its consideration. Mrs. Kolata stated that the Agreement for the Lease and Development of Real Property at 414 W. Sample Street is in connection with the Studebaker AutoParts Sales Corporation's project. In COMMISSION ADOPTED RESOLUTION NO. 1733 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTIES AT 2801, 2802, 2807, 2808, 2813, 2814, 2817, 2820, 2821, 2825, 2901, 2902, 2905, 2906, 2909, 2912, 2916, 2917, 3001, 3019, WEST CALVERT STREET AND 2239 SOUTH PROSPECT STREET IN THE SAMPLE -EWING DEVELOPMENT AREA. (G & M PROPERTIES) South Bend Redevelopment Commission Special Meeting - January 7, 2000 6. NEW BUSINESS (CONT.) h. continued... She also stated that the Lease Agreement places some obligations on Studebaker AutoParts Sales Corporation relative to the work which will be completed along the exterior of the property. There are specific improvements that need to be made to the exterior. These are described in Exhibit B. In addition, the tenant is required to do work on the interior to meet all building codes. The lease is for 10 years with two additional five -year option periods. The lease payment is $100 a month. The Tenant shall be responsible for all repair and maintenance of the building. The tenant is required to carry insurance on both the building and inventory and to name the Redevelopment Commission as an additional insured. The tenant is required to bring the building up to code and to make the improvements which are listed on Exhibit B. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved the Agreement for the Lease and Development of Real Property in connection with the property at 414 W. Sample Street in the Sample - Ewing Development Area. (Studebaker AutoParts Sales Corporation) -10- COMMISSION APPROVED THE AGREEMENT FOR THE LEASE AND DEVELOPMENT OF REAL PROPERTY IN CONNECTION WITH THE PROPERTY AT 414 W. SAMPLE STREET IN THE SAMPLE -EWING DEVELOPMENT AREA. (STUDEBAKER AUTPARTS SALES CORPORATION) South Bend Redevelopment Commission Special Meeting - January 7, 2000 6. NEW BUSINESS (CONT.) i. Commission approval requested for Consent to Collateral Assignment of Lease in connection with the property at 414 W. Sample Street in Sample -Ewing Development Area. (Studebaker AutoParts Sales Corporation) Mrs. Kolata stated that Teachers Credit Union has made certain loans to Studebaker AutoParts Sales Corporation in connection with its new project. If Studebaker AutoParts Sales Corporation defaults on its loan from Teachers Credit Union, then TCU reserves the right to exercise its rights under the Mortgage to take assignment of the Lease and assume obligations of the tenant under the Lease. Mrs. Kolata explained that she signed this document at the closing on December 27, 1999, after legal counsel advised her that it would not be valid until the Commission approved the Lease for 414 W. Sample. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved the Consent to Collateral Assignment of Lease in connection with property at 414 W. Sample Street in the Sample -Ewing Development Area. (Studebaker AutoParts Sales Corporation) -11- COMMISSION APPROVED THE CONSENT TO COLLATERAL ASSIGNMENT OF LEASE IN CONNECTION WITH PROPERTY AT 414 W. SAMPLE STREET IN THE SAMPLE -EWING DEVELOPMENT AREA. (STUDEBAKER AUTOPARTS SALES CORPORATION) South Bend Redevelopment Commission Special Meeting - January 7, 2000 6. NEW BUSINESS (CONT.) j. Commission approval requested for Affidavit of Title and Subordination Agreement with KeyBank National Association. (Dynamic R.E.H.C., Inc.) Mrs. Kolata stated that the Redevelopment Commission and Dynamic R.E.H.C., Inc. entered into a Contract for Sale of Land on August 13, 1999. "Inc." was inadvertently omitted from Dynamic R.E.H.C., Inc.'s name in the Deed. The Affidavit of Title and Subordination Agreement corrects that mistake and also places KeyBank's loan in first position. Mr. Faccenda disclosed a potential conflict of interest with this item. Upon further discussion, it was determined that any potential conflict was tenuous at best and that Mr. Faccenda did not have a pecuniary interest in this item. Therefore, it was agreed that Mr. Faccenda could vote on this item. Upon a motion by Mr. Donoho, seconded by Mr. Hunt and carried, the Commission approved the Affidavit of Title and Subordination Agreement KeyBank National Association. (Dynamic R.E.H.C., Inc.) -12- COMMISSION APPROVED THE AFFIDAVIT OF TITLE AND SUBORDINATION AGREEMENT KEYBANK NATIONAL ASSOCIATION. (DYNAMIC R.E.H.C., INC.) South Bend Redevelopment Commission Special Meeting - January 7, 2000 6. NEW BUSINESS (CONT.) k. Commission approval requested for proposal for professional services in connection with the property at 210 W. Monroe Street in the South Bend Central Development Area. (Bell Appliance Parts) Mrs. Kolata stated that the proposal received was from R.E. Pitts & Associates in the amount of $3,500.00 to appraise the Bell Appliance Parts building at 210 W. Monroe Street. Mr. Faccenda disclosed a potential conflict of interest with this item. Upon further discussion, it was determined that any potential conflict was tenuous at best and that Mr. Faccenda did not have a pecuniary interest in this item. Therefore, it was agreed that Mr. Faccenda could vote on this item. Upon a motion by Mr. Donoho, seconded by Mr. Hunt and carried, the Commission accepted the proposal for professional services in connection with the property at 210 W. Monroe Street in the South Bend Central Development Area. (Bell Appliance Parts) 1. Commission approval requested for appeal on size of sign in connection with the property at 117 V2 S. Main Street in the South Bend Central Development Area. (Pinnacle Properties) Mrs. Kolata presented a memo from Don Fozo, Building Department, to the Commission for its consideration. -13- COMMISSION ACCEPTED THE PROPOSAL FOR PROFESSIONAL SERVICES IN CONNECTION WITH THE PROPERTY AT 210 W. MONROE STREET IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (BELL APPLIANCE PARTS) South Bend Redevelopment Commission Special Meeting - January 7, 2000 6. NEW BUSINESS (CONT.) 1. continued... The memo stated that Pinnacle Properties proposes to construct a 48 sq ft sign on its building in downtown South Bend. The design standards adopted by the Commission states that the total area of signage on one building facade cannot exceed 45 sq ft but can be increased to not greater than five percent of the building's facade if approved by the Redevelopment Commission. The staff recommends approving the 48 sq ft sign. Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission approved the 48 sq ft sign in connection with the property at 117 '/2 Main Street in the South Bend Central Development Area. (Pinnacle Properties) 7. PROGRESS REPORTS Mrs. Kolata welcomed Cheryl Greene, Redevelopment's new attorney who has replaced Brian Steinke. 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is scheduled for January 21, 2000, at 10:00 a.m. -14- COMMISSION APPROVED THE 48 SQ FT SIGN IN CONNECTION WITH THE PROPERTY AT 117 '/z MAIN STREET IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (PINNACLE PROPERTIES) South Bend Redevelopment Commission Special Meeting - January 7, 2000 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 mee ' as adjourn4 .10:55 a.m. f, ,J r Robert ;Tresiderit' " -15- ADJOURNMENT Ann E. Kolata, Director