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HomeMy WebLinkAboutRM 02-18-00SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING February 18, 2000 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 Ms. Marcia Jones, Vice President Mr. Matt Kahn, Member Member Absent: Mr. Philip J. Faccenda, Secretary Legal Counsel: 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 Ms. Hedy Robinson, Economic Development Specialist Mrs. Michele Bush, Economic Development Specialist Business Assistance: Mrs. Cassandra Moran, Economic Development Specialist Others: Mr. Frank Ieraci Mr. James P. Ieraci Mr. Dronj ska P. Laval Mr. Grant Allbaugh Mr. Ted Foti, Memorial Hospital Mr. Edwin E. Bowers Mr. Craig Hudson, DLZ Mr. Tom Brademas Mr. Jeff McGowan, General Sheet Metal Works, Inc. Mr. John Axelberg, General Sheet Metal Works, Inc. Mr. Orville R. Thornburg -1- s t South Bend Redevelopment Commission Regular Meeting - February 18, 2000 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of February 4, 2000. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the Minutes of the Regular Meeting of February 4, 2000. 3. CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FEBRUARY 4, 2000 Redevelopment Commission Claims submitted February 18, 2000 for approval. 212 CDBG COMMUNITY DEVELOPMENT Tri- County News $33.93 South Bend Tribune $105.67 Dainty Maid Bake Shop $24.95 Alltel $69.85 CB Richard Ellis $3,440.48 Print Shop $142.83 Petty Cash $62.98 Business Systems Inc. $232.97 Baker & Daniels $1,925.00 American Electric Power $142.21 Lang, Feeney & Associates, Inc. $200.00 Downtown Idea Exchange $177.00 R.E. Pitts & Associates, Inc. $3,500.00 Division of Engineering $121.50 South Bend Water Works $16.67 NIPSCO $12.14 Ameritech $55.34 Insty -Print $41.92 First USA Financial Services $25.00 -2- % I South Bend Redevelopment Commission Regular Meeting - February 18, 2000 3. APPROVAL OF CLAIMS (CONT.) 324 FUND Nephrology, Inc. $12,375.00 Crescent Michiana Properties LLC $37,940.00 Rieth -Riley Construction $12,817.13 R & R Excavating, Inc. $90,935.22 414 SAMPLE -EWING FUND Ken Herceg & Associates, Inc. $11,295.96 Bradberry Bros. Excavating Co. $52,595.00 Stone Real Estate Group $2,750.00 American Electric Power $262.57 Clean Air Systems, Inc. $1,177.25 Jerome E. Michaels, MAI $1,000.00 Grauvogel & Associates $1,230.00 New Life Restoration Inc. $300.00 420 SBCDA CB Richard Ellis /Sturges Bradley $184.12 Bank One $800.00 South Bend Water Works $154.49 American Electric Power $1,260.40 NIPSCO $464.66 424 TIF- SBCDA- BUILDING OPERATIONS Rose Exterminating Company $84.00 Big C Lumber $155.42 Country Gardens, Inc. $1,125.00 CB Richard Ellis $3,555.00 Rainbow International Carpet $355.00 Rose Exterminating $84.00 Champion Soft Water $49.75 South Bend Chemical Co. $99.70 South Bend Supply Co. $129.99 All -Phase $31.76 Midwest Fire Protection $150.80 11911 i 0 South Bend Redevelopment Commission Regular Meeting - February 18, 2000 3. APPROVAL OF CLAIMS (CONT.) 425 LEIGHTON PLAZA CB Richard Ellis CB Richard Ellis 619 BLACKTHORN Meadowbrook Golf Group, Inc. Upon a motion by Ms. Jones seconded by Mr. Kahn and unanimously carried, the Commission approved the Claims submitted February 18, 2000, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS a. Election of Vice - President of the Redevelopment Commission. Mrs. Kolata stated that Michael Donoho resigned as a member of the Redevelopment Commission to take a job in Dayton, Ohio. As a result of his resignation, the Vice President position is vacant and a new Vice President needs to be elected. $6,031.96 $3,517.76 $7,450.00 COMMISSION APPROVED THE CLAIMS SUBMITTED FEBRUARY 18, 2000, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS -4- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) a. continued... Bob Hunt made a motion to elect COMMISSION ELECTED MARCIA Marcia Jones as the new Vice- JONES AS THE NEW VICE - PRESIDENT President, Matt Kahn seconded the OF THE REDEVELOPMENT motion and it was unanimously COMMISSION carried. b. Public Hearing on Resolution No. 1737. 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 IcJanuary 28, 2000, a statement from Ann Kolata that a Notice to Taxing Units Within the South Bend Central Development Area of the City of South Bend was sent to the taxing jurisdictions on February 7, 2000, and a statement from Michael Giulioni that on January 27, 2000, the Notice of Public Hearing was sent to the affected property owners and registered neighborhood associations. As of 10:00 a.m. on February 18, 2000, no written remonstrances were received. Michael Giulioni gave a presentation regarding Resolution No. 1737. -5- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... I will begin with an introduction which will provide you with some history of the South Bend Central Development Area and reasons why we are here today. I will give you some background on the proposed expansion area and why it is necessary. Information will then be provided on the proposed boundaries of the expansion area as well as its purpose and relationship to the existing South Bend Central Development Area. The goals and objectives for the Expansion Plan will be identified. The proposed land uses for the expansion area will also be identified. Finally, I will discuss some of the remaining relationships of this proposed amendment, with the existing South Bend Central Development Area Development Plan. In 1968, the Central Urban Renewal Area was first created. Then, in 1980, the East Bank Development Area was created and, in 1981, the Monroe Sample Development Area was created. In 1985, it was recognized that these three redevelopment areas, although separate, were very interrelated, and in order to maximize the redevelopment benefit for each area, they were consolidated and expanded into the South Bend in South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... Central Development Area As identified in the slide, the South Bend Central Development Area has seen a large amount of investment since its creation. Since 1985, the area has had over $250 million in both public and private investment. This past year was very successful, resulting in over $20 million ofpublic and private dollars invested into the area. Although the area has demonstrated successful growth, changes in how Health Care Services have been delivered over the past 10 -20 years, have resulted in the need to expand the existing South Bend Central Development Area's boundaries in order to, once again, maximize the redevelopment benefit for both the South Bend Central Development Area and what is the proposed Downtown Medical Services District. As I just mentioned, there have been many changes in how Health Care Services are delivered in the United States over the past 10 -20 years. One of the biggest trends has been the increase in outpatient -based service delivery. Advancements in technology have allowed for procedures which required multiple - day stays in the hospital to be accomplished in a matter of hours in -7- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... a clinical setting. Local hospitals are no exception to this trend — Memorial Hospital of South Bend has seen a growth in outpatient surgery from 30 percent of their total procedures in 1996, to 70 percent of their total procedures this past year. This change in how services are delivered has had a direct impact on the physical facilities which are required to deliver these services. An increase in outpatient services has reduced the need for the traditional hospital bed environment in lieu of more office or clinic based setting. Also, with the frequency of visits increased on daily basis, the need for parking spaces to meet the service demand is also an important physical consideration that hospital administrators must deal with. Faced with increasing urban land prices, some hospitals have moved their operations to cheaper greenfield sites. Fortunately, Memorial Hospital has committed to their existing location in downtown South Bend. Although committed to their existing location, Memorial Hospital must still face some serious geographic constraints. (Referring to a map) The red area identifies the existing campus of Memorial Hospital, we have the South Bend Medical IF-111 South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... Foundation; to the far east and west are two established residential neighborhoods, the Park Avenue and Riverbend neighborhoods; to the north, we have Leeper Park and Madison School; we also have some organizational related uses (the Scottish Rite and Masonic Temple). We do see that there is some expansion potential to the north and some to the east and southeast. In such a confined environment, the need for the ability to effectively plan and implement growth in a timely and orderly manner is essential. Therefore, the intent of the Downtown Medical Services District is to provide the necessary framework to allow for a development strategy which will ultimately benefit both the hospital and the community. I would now like to talk a little about the proposed expansion area Map 17.1 identifies both the existing South Bend Central Development Area boundary and the proposed Expansion Area. The proposed expansion area is approximately 78 acres in area With the addition of the expansion area, the South Bend Central Development Area, which is now 528 acres, will be increased in area by approximately 15 percent. Although, identical boundaries, two 0 • South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... distinct districts are being created.• One for the purpose of a TIF Allocation Area; Another for purpose of a Redevelopment Area The Downtown Medical Services Allocation Area for the purposes of TIF is not indefinite and will expire on December 31, 2015. The Downtown Medical Services District Development Plan is an amendment to the existing South Bend Central Development Area Development Plan. Because of that, it is necessary that we review the goals for the South Bend Central Development Area to demonstrate their consistency with what is being proposed. The Goals for the existing South Bend Central Development Area Plan are as follows: (1) To make the area a multi -use regional center for North Central Indiana and South Central Michigan for business and consumer services, specialty retail, governmental and medical services, cultural, entertainment, recreational and convention uses; (2) To strengthen the residential component of the area by increasing the number and type of middle income housing units; (3) To increase the level of private investment and reinvestment in the area; (4) To increase both the personal and real property tax base -10- • South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... the area; (S) To retain and increase jobs within the area by retaining and attracting both consumer service, business service and light industrial uses; (6) To enhance and strengthen the various linkages between the Central Business District, East Bank and Monroe Park; (7) To create the physical and organizational environment which will facilitate and enhance the phase -in of private resources and the phase -out of extraordinary public investment; (8) To make the old and new buildings, facilities and public improvements work together to enhance the uniqueness and attractiveness of the area; (9) To create an overall environmental quality which recognizes the pervasive uses and influence of the automobile on the area but at the same time provides pedestrians with a safe, accessible and attractive circulation system; (10) To coordinate the economic revitalization and physical redevelopment of the area with the major programs being implemented on commercial corridors such as Western Avenue and Lincolnway West; (11) To increase the use of the parks and walkways along the St. Joseph River and the East Race Waterway for both passive and active recreation; (12) To encourage a balanced transportation -11- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... which provides for and accommodates various forms of transportation including automobile, bus and pedestrian traffic; (13) To maintain a consistently high level of quality in design and materials for new construction, renovation projects, public space, landscaping, lighting and signage; (14) To create and maintain a strong private /public organizational framework in which to establish project plans and implementation strategies; (1 S) To increase the functions and facilities within the area to make it an attractive and competitive area for living, working and recreation. Similar to the previously identified redevelopment areas within the South Bend Central Development Area —the Central Business District, East Bank and Monroe Park —the Downtown Medical Services District has its own individual characteristics and its own individuality. However, like those districts, the success of the Downtown Medical Services District is also related to the existing South Bend Central Development Area, and its relationship to its immediate surroundings. In order to encourage successful redevelopment which benefits not only the proposed area, but also its surroundings, the -12- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... following area specific objectives were established to guide future redevelopment activities. (1) To facilitate the timely and orderly growth of health care related uses located in Area L as shown on Map 17.4. (2) To encourage development projects which complement development activities in the Central Business District. (3) To facilitate necessary changes andlor improvements to the transportation/circulation system to best meet the needs of the health care related uses and the surrounding community. (4) To facilitate necessary changes andlor improvements to the area's infrastructure to best meet the needs of the health care related uses and the surrounding community. (S) To facilitate private investment in the transition area shown as Area P on Map 17.4, between the Downtown Medical Services District and the Central Business District. (6) To improve physical connection for pedestrians and increase movement of foot traffic between the Downtown Medical Services District and the Central Business District. (7) To encourage pedestrian connections between the health care related uses and surrounding parks and neighborhoods. (8) To continue to ensure development which is -13- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... compatible and complementary to adjacent parks, neighborhoods and non - health care related uses. (9) To coordinate parking plans in order to meet the needs of the Downtown Medical Services District Expansion Area No. 4. In addition, to the just identified development plan objectives, Map 17.4 to which I have been referring was developed as broad guidance for future land uses. Area L has been designated as health care related uses. The highest priority in this area will be health care related uses; however, this designation shall not restrict other opportunities for uses which are either complementary or compatible with Health Care uses. Area M consists of the Madison Elementary School. This area is presently occupied by the South Bend Community School Corporation's James Madison Elementary and will continue to be used as such. Area N consists of multi family residential structures. It currently contains the Mar -Main apartments. This area will also continue to be used as it already is. Area O consists of the Fraternal, Civic Organization and Religious uses. Presently being used by different organizational and religious base uses such as the Scottish Rite and Masonic Temples, -14- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... this area shall remain as such. The sharing of the existing surface lots in this area with surrounding uses is encouraged. Finally, Area P consists of the transitional area. Currently, a mix of different restaurant, retail and office related uses. The highest priority in this area shall be for future mixed use, commercial and office related uses which complement development activities to the south, in the Central Business District. In addition to the previously discussed topics such as goals and objectives, there are many other items which are components of the existing South Bend Central Development Area Development Plan which are related to our amendment today. I would like to end the presentation by quickly identifying and summarizing how the different components relate between the expansion plan and the existing plan. First, consistent with the existing South Bend Central Development Area Plan, the expansion plan will promote the unrestricted and safe flow of traffic within, through and around the boundaries of the expansion area. The expansion plan shall be consistent with existing guidelines identified in the South Bend Central -15- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... Development Area Plan. However, in addition to these guidelines and due to the district characteristics of the area, coordination of parking plans, the sharing of parking facilities between different uses and the construction of parking structures are all encouraged. The Downtown Medical Services District shall not be subject to the design review guidelines which are identified in the existing South Bend Central Development Area Development Plan. No properties are identified for acquisition as a component of this plan amendment. Final components including: How future amendments will take place; The Statutory Authority for the plan; Obligations the developer must follow; The land acquisition procedures; The property rehabilitation requirements and the types of Redevelopment activities which are allowable, are all consistent with the existing South Bend Central Development Area Plan Mr. Hunt opened the public hearing for anyone who wished to speak regarding Resolution No. 1737. Ted Foti, Memorial Hospital, stated that "Obviously, we are in support of the expansion area (inaudible). -16- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... Memorial's current location serves us well and serves the community well, and Memorial is committed to this location. We presently have about $66 million worth of construction in process. Mr. Foti stated that Memorial Hospital feels that its current location has good access through the area and the region. Currently, 50% of patients come from a five -county region and they have easy access to highways and the toll road. As Michael pointed out, there has been considerable change in health care. At one time, the Hospital had 567 beds. Today, we presently operate about 300 beds and obviously the building has not shrunk it has grown. It's because we need those areas in order to provide the kind of space required for patient care. That encompasses from minor surgery all the way to diagnostic and teaching. We expect that would continue and grow. Due to a high demand for its services, Memorial Hospital is forced to expand its facilities. He also stated that Memorial Hospital's expansion is limited to the east and west because of historical districts and they are supportive of those -17- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... districts. They also feel that Leeper Park to the north is an asset. Our expansion is limited to the south and to the north up to Leeper Park. We do not look to expand to the east or the west. We look at the TIF District as an integral part of a joint plan with the City. We recently completed a master plan for the campus including both internal and external members of a task force to assist us. We have finalized a plan that we feel will serve us well. We have no immediate plans for new construction. Ones that are under construction now include 100 Navarre Place, which is a $32 million project which will provide space for physicians as well as outpatient services. It also has a 680 car parking garage to serve that building. We also have current projects at the hospital itself including a trauma center plus expansion of the maternity area. It's a two or three year construction project which will create some new trauma services, quadrupling the size of the emergency room. There are currently only three Level Two Trauma Centers in the state of Indiana. Memorial will be the fourth. It allows for specialized -18- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... intensive type care being given to emergency patients. Those patients, in order to receive that care today, go to Chicago or Indianapolis or sometimes to Fort Wayne or Detroit. This will allow patients to stay within the community. We presently have 3,300 employees, the majority of those employees are residents of the City of South Bend. Our economic impact on the community, based on a study by Indiana University South Bend, is $180 million annually brought into the community from outside. We believe that expansion of the South Bend Central Development Area will make us very comfortable for many years to come. We expect to have an urgent need for additional physician space. We add about 35 physicians a year. Our medical staff is presently about 550. We have no reason to believe that growth will not continue for years to come. (Inaudible) James Ieraci stated that he is representing his mother who lives east of Memorial Hospital. Mr. Ieraci asked Mr. Foti, "How do you plan bridging Michigan Street? Are you planning on separate buildings? " Mr. Foti stated that -19- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... "Right now the two immediate needs are parking (primarily employee parking) and (inaudible). Nothing requires us to bridge Michigan St. I would expect in the future to have some redirection of traffic. " Mr. Ieraci asked Mr. Foti "What is your timing on the acquisition of property east of Michigan Street? " Mr. Foti responded, [inaudible] Mr. Ieraci asked Mr. Foti, "Will the City of South Bend be involved in the acquisition of properties to the east of Michigan Street? " Mrs. Kolata stated that this resolution and plan amendment do not include any acquisition of properties by the Redevelopment Commission. The City's involvement would be to sit down with Memorial Hospital to look at how the boundary of St. Joseph Street affects the neighborhood. Mr. Foti (inaudible). Mrs. Kolata explained that the plan amendment provides a general outline of where development will happen without getting into the specifics of future development by Memorial Hospital. Mr. Foti stated that Memorial would be willing to meet with the neighborhood in two to four weeks to discuss their plans. Tom Brademas with offices at 425 N. Michigan St. stated "It would be very difficult for me to sell my -20- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... property at 425 N. Michigan St. which is essentially a private office building, since that area is being designated for health care. This has a potential adverse effect because it limits my ability to sell it. Michael, in his presentation, stated that from 1985 to 1990, there has been a total of $250 million in public and private investment. Do you have any idea how much is public and how much is private?" Michael Giulioni stated "No, I don't have the breakdown with me, but I can get that information for you." Mr. Brademas stated, "I think you should locate that information because you will find that a significant portion of it was from public investment. In terms of 1999, you talk about $20 million, is that the Leighton Center? Mrs. Kolata stated that investment at Leighton Center was counted in an earlier year. Mr. Brademas asked Mrs. Kolata, "Is Leighton Center on the tax roll? Mrs. Kolata stated that the office building at 130 S. Main is taxable property. Memorial Leighton Healthplex will not pay property taxes. The parking garage will not pay property taxes. The retail space in the parking garage will pay property taxes. -21- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... Mr. Brademas asked if 100 Navarre Place would pay property taxes. Mrs. Kolata responded that it would. Mr. Brademas stated "According to the report Indiana TIF Stud v. the base year, the year the TIF District is established, I'm assuming we're talking about the year 2000. " Mrs. Kolata stated "That isn't correct, the base year would be March 1, 1999, and the growth attributable to 100 Navarre Place would be part of the increment. Mr. Brademas stated "Even though it is being taxed out? " Mrs. Kolata responded that the base value would be whatever was there on March 1, 1999, and growth in that increment since then would be available to the TIF District." Mrs. Kolata stated "1'm not sure when you started construction, if there were anything there starting March 1, 1999; if there were, it was a small amount. " Mr. Brademas stated, "There was a paved parking lot with lights installed. I'm for TIF Districts. I get a little agitated about where the TIF District dollars go. We helped put in all of the infrastructure on Grape Road with TIF and not with dollars from the local taxpayers. Eventually, I hope that those public items pay for themselves so that those of us who pay taxes could get relief Because what you are going to be doing here -22- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... now is have a significant increase in hospital activity, which would not be taxable,1 believe. Therefore, you would have to put in a lot ofpublic infrastructure. Hopefully, you will have enough money to capture it. Since you don't tax the hospital, it's all the rest of us in that area that will have our taxes.... .. Mrs. Kolata stated "The study that you are referring to, if it is the one that I'm familiar with, has shown that the growth in the area as a whole has benefitted from use of TIF. The hospital itself is not a property taxpaying entity. That much you are correct on. The office buildings, which are considered primarily private uses, are taxed; therefore, they become part of the tax increment. To the extent they improve the Trauma Center that won't pay property taxes, but this building (100 Navarre Place) has even been granted tax abatement as well. It will be paying taxes that will be captured as increment. If they do other similar types of office buildings that are considered private uses, they would pay taxes and that tax increment would go to pay for structural improvements to the area. I think you're right that we see it as a, hopefully, somewhat short term need to capture the tax increment, -23- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... and make any type of public improvements which are necessary in order to enable this to happen and then dissolve the tax increment. Then the resolution states that the TIF distict will be dissolved by the end of 2015. But if we determine that we do not need to keep it that long [inaudible]. Mr. Brademas stated "Those property tax situations have always concerned me, since I have done a study and found that we have 1, 600 plus properties in St. Joseph County which are tax exempt. A significant number of them clearly do not meet the requirements of the State law and that means that all of the people that pay taxes in St. Joseph County are picking up the tab for (inaudible) and things of that nature. " Mr. Brademas also stated that "The whole concept is that the increase in taxes over and above when the TIF District was declared, you build a lot of buildings which are not on the tax roll, there cannot be money coming in to pay for your public improvements. That means any public improvements that you put in have to be paid through some other means. " Mrs. Kolata stated that, "Or they don't go in on the schedule which they would like for them to go in. " Mr. Brademas stated that, "I'm -24- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... just trying to make sure that those who are here understand that while I'm all for the hospital expansion, as a matter of fact, 1 had surgery done over there approximately four or five weeks ago and they did a marvelous job, so 1 understand that, but at the same time, the importance of the public life today is to be right up front with what is going on and make certain that everybody that has a concern understands what is going on. " Mr. Hunt asked if anyone else wished to speak. There was no one else who wished to speak at the public hearing. Mr. Hunt closed the public hearing for whatever action the Commission wished to take. b. Commission approval requested for Resolution No. 1737 Expanding the Boundaries of the South Bend Central Development Area, Establishing an Allocation Area for the Purposes of Tax Increment Financing and Amending the South Bend Central Development Area Development Plan. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission adopted Resolution No. 1737 Expanding the Boundaries of -25- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) b. continued... the South Bend Central Development COMMISSION ADOPTED RESOLUTION Area, Establishing an Allocation NO. 1737 EXPANDING THE Area for the Purposes of Tax BOUNDARIES OF THE SOUTH BEND CENTRAL DEVELOPMENT AREA, Increment Financing and Amending ESTABLISHING AN ALLOCATION the South Bend Central Development AREA FOR THE PURPOSES OF TAX Area Development Plan. INCREMENT FINANCING AND AMENDING THE SOUTH BEND CENTRAL DEVELOPMENT AREA Mrs. Kolata stated that Resolution No. 1737 expands the boundaries of the South Bend Central Development Area, establishes an allocation area for the purpose of tax increment financing and amends the South Bend Central Development Area Development Plan. c. Commission approval requested for Resolution No. 1742 approving an application for personal property tax deduction for property at 1902 S. Main Street in the Sample -Ewing Development Area. (General Sheet Metal Works, Inc.) Cassandra Moran presented the following staff report to the Commission for its consideration. General Sheet Metal Works, Inc. was founded in 1922. It provides metal fabricated metal products to the lawn, garden and towing equipment industries. Presently, the company DEVELOPMENT PLAN e% South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) c. continued... plans to add three major pieces of equipment: (1) Mazak Laser STX HiPro Supercharged ($620,000); (2) Two Precision Press Brakes ($389,000), for an estimated cost of $1,000,000. These capital improvements will allow the company to achieve future growth and maintain its existing quality. Per the petition, it is estimated that this project will create eight new, permanent jobs within the first year, representing a new annual payroll of $240,000 and will maintain 100 existing, permanent, full -time jobs and part-time jobs representing an annual payroll of $2,645,005. A review of the tax abatements previously granted, finds that General Sheet Metal Works, Inc. has been granted 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 Sample -Ewing Development Area, which is a Tax Incremental Allocation Area; therefore, the -27- '' l t South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) c. continued... 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 General Sheet Metal Works, Inc. meets the qualifications for a five -year personal property tax abatement under Tangible Personal Property Tax Abatement. Using the estimated equipment cost of $1,000,000, the taxes generated over the five -year period will be approximately $97,873. Taxes abated over the five -year period will be approximately $80,518. Taxes still paid with the abatement over the five -year period will be approximately $17,355. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission adopted Resolution No. 1742 approving an application for personal property tax deduction for property at 1902 S. Main Street in the Sample -Ewing Development Area. (General Sheet Metal Works, Inc.) COMMISSION ADOPTED RESOLUTION NO. 1742 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY AT 1902 S. MAIN STREET IN THE SAMPLE -EWING DEVELOPMENT AREA. (GENERAL SHEET METAL WORKS, INC.) -28- ., 4 4 • South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) e. Commission approval requested for professional services in the Airport Economic Development Area. (Legal Descriptions) Mrs. Kolata stated that two legal descriptions and a CAD Map are needed in order to expand the Airport Economic Development Area. The two proposals were received from Lang, Feeney and Associates, Inc. in the amount of $100.00 per legal description plus $50/hour for CAD work and Fisher Land Surveying Services, Inc. in the amount of $350.00. The staff recommends accepting the proposal from Lang, Feeney & Associates, Inc. Upon a motion by Ms. Jones, COMMISSION ACCEPTED THE seconded by Mr. Kahn and PROPOSAL FROM LANG, FEENEY & unanimously carried, the ASSOCIATES, INC. FOR PROFESSIONAL Commission accepted the proposal SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (LEGAL from Lang, Feeney & Associates, DESCRIPTIONS) Inc. for professional services in the Airport Economic Development Area. (Legal Descriptions) E Staff report on disposition of property in the Sample -Ewing Development Area. Mrs. Kolata asked permission to ITEM 6.F. WAS TABLED table item 6.f. There was no objection and item 6.f. was tabled. -29- South Bend Redevelopment Commission Regular Meeting - February 18, 2000 6. NEW BUSINESS (CONT.) g. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property at 142 N. Illinois. (Jeanette Anderson) Mrs. Kolata stated that the loan is in the amount of $3,100.00 at 0% interest for 10 years with monthly payments of $25.83. The grant is in the amount of $2,914.33. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the Loan and Grant in connection with the property at 142 N. Illinois. (Jeanette Anderson) h. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property at 1207 Altgeld. (Deborah Bogeart) Mrs. Kolata stated that the loan is in the amount of $3,600.00 at 3% interest for 10 years with monthly payments of $34.76. The grant is in the amount of $2,270.40. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE PROPERTY AT 142 N. ILLINOIS (JEANETTE ANDERSON) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY AT 1207 ALTGELD. (DEBORAH BOGEART) -30- I 1 • South Bend Redevelopment Commission Regular Meeting - February 18, 2000 property at 1207 Altgeld. (Deborah Bogeart) i. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property at 1821 S. Grant. (Mary Rose Houk) Mrs. Kolata stated that the loan is in the amount of $3,650.00 at 0% interest with monthly payments of $60.83. The grant is in the amount of $3,470.50. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property at 1821 S. Grant. (Mary Rose Houk) j. Commission approval requested for use of the Wayne /St. Joseph Street Parking Garage for Rooftop Rendezvous on June 23, July 21 and August 18, 2000, in the South Bend Central Development Area. (AIDS Ministries) Mrs. Kolata asked permission to table item 6.j. There was no objection and item 6.j. was tabled. COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY AT 1821 S. GRANT (MARY ROSE HOUK) ITEM 6.J. WAS TABLED -31- 4 1 1 • South Bend Redevelopment Commission Regular Meeting - February 18, 2000 7. PROGRESS REPORTS Mrs. Kolata reported that MaxiBlast has been completed. She also reported that JB Investment is near completion on the building they are constructing in the Blackthorn Corporate Park. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for March 3, 2000, at 10:00 a.m. 9. ADJOURNMENT There being no further business to come ADJOURNMENT before the Redevelopment Commission, Ms. Jones made a motion that the meeting be adjourned. Mr. Kahn se e c emotion and the meeting as jo at1T 0 � Robert Huni; Vr-elfden Ann E. Kolata, director -32-