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HomeMy WebLinkAboutRM 06-02-00SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING June 2, 2000 10:00 a.m. Presiding: Robert W. Hunt, President 1. ROLL CALL Members Present: Member Absent: Legal Counsel: 1308 County -City Building 227 West Jefferson Boulevard South Bend, Indiana Mr. Robert W. Hunt, President Ms. Marcia Jones, Vice - President Mr. Matt Kahn, Member Mr. Philip J. Faccenda, Secretary Ms. Cheryl Greene Redevelopment Staff: Mrs. Ann E. Kolata, Director Mr. Don Inks, Director, Economic Development Mrs. Cheryl Phipps, Recording Secretary Mr. Owen Rock, Economic Development Specialist Mr. Alex Koenig, Economic Development Specialist Mr. Robert Case, Economic Development Specialist Ms. Sandy Moran, Economic Development Specialist Mr. Tom Nichol, Intern Mr. Jeff Myers, Intern Others: Mr. Jack Long, Total Industries Mr. Mike Wojtysiak, Masterbilt Mr. Robert Michalak, Masterbilt Mr. Dean Uminski, Crowe Chizek Mr. Tom Veldman, The Tire Rack 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of Friday, May 19, 2000. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Minutes of the Regular Meeting of Friday, May 19, 2000 were approved. -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, MAY 19, 2000. South Bend Redevelopment Commission Regular Meeting -June 2, 2000 3. CLAIMS Redevelopment Commission Claims submitted June 2, 2000 for approval. 212 CDBG COMMUNITY DEVELOPMENT Tri- County News $22.62 South Bend Tribune $52.64 City Clerk Office $17.30 Federal Express $37.06 Dainty Maid Bake Shop $74.85 Midwest Reporting Inc. $522.70 NIPSCO $6.07 Bank One $73.94 South Bend Water Works $15.56 414 - SAMPLE -EWING FUND Metropolitan Title Indiana $170.00 Mr. Andrew Riffel $250.00 Kent and Sandra Price $200.00 Michiana Auto Inc. $50,731.87 Ralph D. Lauver MAI $950.00 AEP (501 Wenger) $27.87 Ivy Tech State College $500.00 Ritschard Bros. Inc. $3,868.00 424 TIF SBCDA - BUILDING OPERATION AEP (Palais Royale) $843.27 South Bend Water Works $164.11 Rose Exterminator Co. $42.00 ICI Dulux Paint $56.80 NIPSCO $154.19 C.B. Richard Ellis South Bend $1,665.09 420 SBCDA FUND Grauvogel and Associates $990.00 Upon a motion by Ms. Jones, seconded by Mr. COMMISSION APPROVED THE CLAIMS Kahn and unanimously carried, the Commission SUBMITTED JUNE 2, 2000, AND ORDERED THE CHECKS TO BE RELEASED approved the Claims submitted June 2, 2000, and ordered the checks to be released. -2- South Bend Redevelopment Commission Regular Meeting -June 2, 2000 4. COMMUNICATIONS There were no Communications. THERE WERE NO COMMUNICATIONS 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS THERE WAS NO OLD BUSINESS Ms. Kolata stated that she had one additional item to add to the agenda. There were no objections, so item 6i was added to the agenda. a. Commission approval requested for Resolution No. 1760 approving an application for personal property tax deduction for property at 3333 West Lathrop Drive in the Airport Economic Development Area. (Total Enterprise, Ltd.) Ms. Moran read the tax abatement report on Total Enterprise, Ltd. Total Enterprises manufactures tooling primarily for use in the automotive and office furniture industries. They operate from a customer print through their CAD /CAM system to produce a pattern from which an aluminum cast is made. These castings are then machined and assembled into a finished operating tool. Such products as office and automotive seats, arm rests, head rests, fire walls, floor pans and head liners are made from the tools. Their project calls for the purchase of new foundry, pattern shop and engineering machinery and equipment in order to produce tooling more competitively. The estimated proposed project cost is approximately $450,000 to $550,000. Per the petition, it is estimated that this project will create two (2) new permanent full -time jobs within the first year, representing an annual payroll of $450,000 to $550,000 and will -3- South Bend Redevelopment Commission Regular Meeting -June 2, 2000 6. NEW BUSINESS (CONT.) a. continued... maintain fifty -eight (58) full -time and two (2) part-time jobs, representing an annual payroll of $2,145,716. A review of the tax abatements previously granted finds that Total Industries, Ltd. has been granted two previous personal property abatements. The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed use. A review of the designated Redevelopment areas finds that the property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area, therefore, the petition first requires the approval of the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that the petitioner meets the qualifications for a five (5) year personal property tax abatement. The tax abatement schedule supplied with the report had a schedule for 10 years of real property abatement instead of 5 years of personal property tax abatement. A new schedule will be supplied for the Common Council and Commission. Without tax abatement the new machinery would generate approximately $48,747 in new taxes. With abatement, the new machinery will generate approximately $8,644 in taxes. Therefore, the cost of the abatement will be $40,103 over the 5 year period. Mr. Jack Long, President, Total Industries, explained that this is the third expansion of Total Industries in four years. The industry is growing and they need to keep up with the latest -4- South Bend Redevelopment Commission Regular Meeting -June 2, 2000 6. NEW BUSINESS (CONT.) a. continued... technology. This machine is 50% faster than the one that it will replace. Mr. Hunt asked the life expectancy of the new machinery. Mr. Long responded that the life expectancy is 7 years. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 1760 approving an application for personal property tax deduction for property at 3333 West Lathrop Drive in the Airport Economic Development Area. (Total Enterprise, Ltd.) b. Commission approval requested for Resolution No. 1761 approving an application for real property tax deduction for property at 213, 221, and 229 Sadie Street in the West Washington - Chapin Development Area. (Habitat for Humanity of St. Joseph County) Habitat for Humanity will construct three (3) affordable single family homes of approximately 1100 sq. ft., with basement on an 80' X 120' lot. Habitat for Humanity uses volunteer labor and donated materials. The established value of the project is $180,000. Habitat will sell the houses to qualified low income families by using a 0% interest loan and mortgage. A review of the tax abatements previously granted finds that the petitioner has been granted two previous tax abatements. The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. -5- COMMISSION APPROVED RESOLUTION NO. 1760 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY AT 3333 WEST LATHROP DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (TOTAL ENTERPRISE, LTD.) South Bend Redevelopment Commission Regular Meeting -June 2, 2000 6. NEW BUSINESS (CONT.) b. continued... 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 real property tax abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that the petitioner meets the qualifications for a five year residential tax abatement under Single Family Real Property Abatement. There were no Habitat for Humanity representatives present at the Commission meeting. Ms. Kolata noted for the record that Mrs. Cheryl Phipps, Recording Secretary is a member of the Habitat for Humanity Board, but has no direct involvement in the decisions made related to this tax abatement. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried the Commission approved Resolution No. 1761 approving an application for real property tax deduction at 213, 221, and 229 Sadie St. in the West Washington- Chapin Development Area. (Habitat for Humanity) c. Commission approval requested for Resolution No. 1762 approving an application for real property tax deduction for property at 3901 Crescent Circle in the Airport Economic Development Area. (Crescent Michiana Properties, LLC) Ms. Moran read the Tax Abatement report on Crescent Michiana Properties. The petitioner is In COMMISSION APPROVED RESOLUTION NO. 1761 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY AT 213, 221, AND 229 SADIE ST. IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA. (HABITAT FOR HUMANITY) South Bend Redevelopment Commission Regular Meeting -June 2, 2000 6. NEW BUSINESS (CONT.) c. continued... proposing to construct a 28,800 sq. ft. addition to the existing building. The addition will allow for the support of additional statement output and sorting equipment. The total estimated cost of the new addition is $2 million. This office building will house The Associates AIS Output Management Services Operation. Their operations consist of computer processing, data preparation and processing services. It processes all Associates' in -house reports as well as the processing and distribution of over 13 million credit card statements per month for the Associates as well as other outside vendors. Per the petitioner, 75 new jobs will be created the first year, representing a new annual payroll of $3,000,000 and will maintain one hundred twenty -five (125) existing permanent full time jobs and part-time jobs with an annual payroll of $4,800,000. A review of the tax abatements previously granted finds that the petitioner has been granted one previous tax abatement. The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. A review of the designated South Bend Redevelopment areas finds that the property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that the petitioner does not meet the qualifications for an abatement due to the location and use of the proposed addition. The -7- South Bend Redevelopment Commission Regular Meeting -June 2, 2000 6. NEW BUSINESS (CONT.) c. continued... use of the proposed addition will be for processing data and printing, sorting, and mailing of credit card statements. This particular development is not within one of the areas designated for office tax abatement. With the knowledge that the project does not meet the specific requirements for abatement, the petitioner is respectfully requesting consideration of a special exception real property tax abatement for several reasons. First, the petitioner has cited the long standing of the Associates Company in South Bend with over 80 years of some form of corporate service and management function within the community. Secondly, the petitioner has stated that they are not trying to simply construct an office building, but rather they are creating a whole new class of business space. Thirdly, according to the petitioner, there appears to be a need for additional incentive for business development within the Blackthorn Corporate Park and having a world class financial institution such as the Associates will be the catalyst for future development within the surrounding area. Considering the above factors, the developer is respectfully requesting consideration of a special exception ten (10) year real property tax abatement. This request would be considered under Section 2 -84, which is the Council's Authority to Enlarge Real Property Tax Abatement General Standards. Mr. Hunt noted that there were no representatives from Crescent Michiana Properties, LLC in attendance. He asked the Commission to table Resolution 1762 to the next meeting and ask that 5:1 COMMISSION TABLED RESOLUTION NO. 1762 TO THE NEXT MEETING. South Bend Redevelopment Commission Regular Meeting -June 2, 2000 6. NEW BUSINESS (CONT.) c. continued... Mr. Panzica from Crescent Michiana Properties, LLC be present to answer any questions. There was no objection and the item was tabled. d. Commission approval requested for Resolution No. 1763 approving an application for real property tax deduction for property at 3851 Olive Rd. in the Airport Economic Development Area. (JVE Investment, LLC (The Tire Rack, Inc.)) Ms. Moran read the Tax Abatement report for JVE Investment LLC. The petitioner intends to build a 440,000 square foot corporate office headquarters and warehouse /distribution facility that will be constructed on approximately 40 acres. The Tire Rack, Inc. is the lessee. This facility will also have an area dedicated for the testing of its products which are performance tires and wheels for passenger automobiles and light trucks. The cost of the building project is approximately $9.6 million. Per the petition, it is estimated that this project will create 14 new, permanent, full -time jobs within the first year, representing a new annual payroll of $370,000 and will maintain 174 existing permanent full -time jobs representing an annual payroll of $7,780,000. The project is expected to create an average of 14 jobs /year for the next three years. A review of the tax abatements previously granted, finds that the petitioner 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 5I South Bend Redevelopment Commission Regular Meeting -June 2, 2000 6. NEW BUSINESS (CONT.) d. continued... South Bend Redevelopment areas finds that the property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that the petitioner meets the qualifications for a ten year real property tax abatement. Mr. Dean Uminski and Mr. Tom Veldman were present to represent The Tire Rack. Mr. Uminski noted that the site selection has been a long and tedious process. He expressed his gratitude to the Redevelopment staff and Commission members for their assistance in moving forward with this project. Mr. Uminski stated that presently there are approximately 91 employees with The Tire Rack and this project will add an additional 17 permanent and part-time employees. Ms. Kolata asked if this proposal was just for the portion of the property that is in the City of South Bend. Mr. Uminski responded that it was just for property currently in the city and that they would start on the county petition next week. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried the Commission approved Resolution No. 1763 approving an application for real property tax deduction for property at 3851 Olive Rd. in the Airport Economic Development Area. -10- COMMISSION APPROVED RESOLUTION NO. 1763 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY AT 3851 OLIVE RD. IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (JVE INVESTMENT, LLC (THE TIRE RACK, INC.) South Bend Redevelopment Commission Regular Meeting -June 2, 2000 6. NEW BUSINESS (CONT.) e. Commission approval requested for Resolution No. 1764 approving an application for personal property tax deduction for property at 325 S. Walnut Street in the West Washington- Chapin Development Area. ( Masterbilt, Inc.) Ms. Moran read the Tax Abatement report for Masterbilt, Inc. The company was formed in 1961 and is a machine shop that supports the Aerospace industry with Allied Signal being its largest customer. Its main products are fuel control parts. The pettioner plans to purchase a CNC Turn and Drill machine with live tooling. The estimated cost of the equipment is $150,000. This purchase will allow the company to maintain its quality and productivity. Per the petition, it is estimated that this project will create one (1) new permanent job within the first year, representing a new annual payroll of $25,000 and will maintain six (6) existing permanent full time jobs with an annual payroll of $190,000. A review of the tax abatements previously granted finds that the petitioner has been granted one previous tax abatement. 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. -11- South Bend Redevelopment Commission Regular Meeting -June 2, 2000 6. NEW BUSINESS (CONT.) e. continued... A review of the Tax Abatement Ordinance finds that the petitioner meets the qualifications for a five (5) year personal property tax abatement. Mr. Mike Wajtesiak and Mr. Bob Michalak were in attendance as representatives of Masterbilt, Inc. Mr. Wajtesiak noted that the machinery would improve the quality of service they provide to their customers. Mr.Wajtesiak presented the Commission with pictures of the existing site and the machinery he is purchasing. Mr. Michalak noted that this new machinery would assist in keeping Masterbilt, Inc. competitive. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried the Commission approved Resolution No. 1764 approving an application for personal property tax deduction for property at 325 S. Walnut Street in the West Washington- Chapin Development Area. f. Commission approval requested for Appeal on Signage in connection with property in the South Bend Central Development Area. (220 West Colfax) Ms. Kolata explained that regulations allow a 36 sq. ft. sign and the request is for 38 sq. ft. There is an existing sign that measures 21 sq. ft. The total would be approximately 59 sq. ft. All other guidelines have been met and the request appears to be reasonable. Mr. Hunt asked if Mr. Markle would have any problems with this. It was noted that Mr. Markle has no objections. -12- COMMISSION APPROVED RESOLUTION NO. 1764 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY AT 325 S. WALNUT ST. IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA. (MASTERBILT, INC.) South Bend Redevelopment Commission Regular Meeting -June 2, 2000 6. NEW BUSINESS (CONT.) f. continued... Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the request for Appeal on Signage in connection with property in the South Bend Central Development Area. g. Commission approval requested for Certificate of Waiver in connection with the Rental Rehab Loan Program for property at 421 N. Blaine. (Nicholas and Mary Ann Kenkel) Ms. Kolata noted that the amount to be forgiven would be $750 as of January 31, 2000. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the Certificate of Waiver in connection with the Rental Rahab Loan Program for property at 421 N. Blaine. h. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property at 4610 Ridgeway. (Lori Gizewski) Ms. Kolata noted that the grant amount is $2,107.60 and the loan amount is $3,350.00 at a rate of 3% for a period of 10 years. The monthly payments would be in the amount of $32.35. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the request for Loan and Grant in connection with the Affordable Loan Program for property at 4610 Ridgeway. (Lori Gizewski) -13- COMMISSION APPROVED REQUEST FOR APPEAL ON SIGNAGE IN CONNECTION WITH PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA.(220 WEST COLFAX) COMMISSION APPROVED REQUEST FOR CERTIFICATE OF WAIVER IN CONNECTION WITH THE RENTAL REHAB LOAN PROGRAM FOR PROPERTY AT 421 N. BLAINE. (NICHOLAS AND MARY ANN KENKEL) COMMISSION APPROVED THE REQUEST FOR LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY AT 4610 RIDGEWAY. (LORI GIZEWSKI) South Bend Redevelopment Commission Regular Meeting -June 2, 2000 6. NEW BUSINESS (CONT.) i. Commission approval requested for proposed landscaping services in the Airport Economic Development Area. (Blackthorn Golf Club) Mr. Rock submitted three quotes for landscaping improvements around the golf course club house. 1. New Frontiers $31,419.00 2. Dave Talboom $35,800.00 3. Robert Foegley $34,972.00 The quotes are broken down into three phases. Phase I will be done this year (2000) and has been budgeted in the capital improvements budget for the year 2000 approved by the Commission. The total amount budgeted for the year 2000 is $10,000 and Phase I will not exceed this number. Phases II and III will be added to next year's capital improvements plan for the golf course and these will be completed in the year 2001. The staff recommends that the Commission approve the proposal from New Frontiers for $31,419. Ms. Kolata suggested that the Commission approve the $10,000 this year and the remainder subject to written authorization. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the proposal from New Frontiers for Phase I landscaping improvement at the Blackthorn Golf Club clubhouse at a cost of $10,000. The remainder of the New Frontiers $31,419 proposal was approved subject to written authorization to proceed under an approved capital budget in 2001. -14- COMMISSION APPROVED THE PROPOSAL FROM NEW FRONTIERS FOR LANDSCAPING SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA ( BLACKTHORN GOLF CLUB) South Bend Redevelopment Commission Regular Meeting -June 2, 2000 7. PROGRESS REPORTS Ms. Kolata introduced the new summer interns PROGRESS REPORTS working for the department: Jeffery Myers and Tom Nichol. Cheryl Green introduced Richard King as her legal intern for the summer. Ms. Kolata noted that Andy Laurent, an intern for the last four summers, was hired as a full time employee beginning in June of 2000. Ms. Kolata reported that the closing has occurred on the lot south of the C.E. Lee building and that the Studebaker Parts inventory has been moved in compliance with the schedule. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment NEXT COMMISSION MEETING Commission is scheduled for June 16, 2000, at 10:00 a.m. 9. ADJOURNMENT ADJOURNMENT There being no further business to come before the Redevelopment Commission, Ms. Jones made a motion that the meeting be adjourned. Mr. Kahn seconded the motion and the meeting was adjourned at 10:42 a.m. f G- Robert W. Hunt, President Ann E. Kolata, Director -15-