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HomeMy WebLinkAboutRM 08-04-00SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 04, 2000 10:00 a.m. Presiding: Robert W. Hunt, President 1. ROLL CALL Members Present: Legal Counsel: 1308 County -City Building 227 West Jefferson Boulevard South Bend, Indiana Mr. Robert W. Hunt, President Ms. Marcia Jones, Vice - President Mr. Philip J. Faccenda, Secretary Mr. Matt Kahn, Member Mr. James Caldwell Ms. Cheryl Greene Redevelopment Staff: Mr. Jon Hunt, Director Ms. Debi Perkins, Recording Secretary Mr. Alex Koenig, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Mr. Michael Giulioni, Economic Development Specialist Mr. Robert Case, Economic Development Specialist Ms. Sandy Moran, Economic Development Specialist Mr. Jeff Meyer, Intern Mr. Tom Nichol, Intern Others Mr. Richard Deahl, Barnes & Thornburg Mr. Patrick Flanagan, Kokoku Wire Mr. Frank Perri, Holladay Corp. Steve Staszewski, Ralph Jones Partners Mr. William Cupp, GWSB 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of July 21, 2000. Upon a motion by Ms. Jones, seconded by Mr. Caldwell and unanimously carried, the Commission approved the Minutes of the Regular Meeting of July 21, 2000. -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF JULY 21, 2000 South Bend Redevelopment Commission Regular Meeting— August 4, 2000 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted August 4, 2000 for approval. 212 CDBG COMMUNITY DEVELOPMENT Robert Case $1,684.45 Andrew Laurent $795.00 Insty Prints $12.80 Tri- County News $22.62 Federal Express Co. $65.90 Printshop $139.54 General Fund - Telephone $212.16 South Bend Water Works $15.56 NIPSCO $6.06 324 FUND J.F. New & Associates, Inc. $272.95 420 FUND R.E. Pitts & Associates, Inc. $3,750.00 414 SAMPLE -EWING FUND Ken Herceg & Associates, Inc. $1,431.86 Knapp Environmental Construction $120,545.68 Joe Poul C/O John B. Ford $24,000.00 R.E. Pitts & Associates, Inc. $600.00 CFH Landscape Services $3,485.50 424 TIF- SBCDA- BUILDING OPERATIONS American Electric Power $2,413.93 CB Richard Ellis $560.32 W. W. Grainger, Inc. $35.02 NIPSCO $12.14 South Bend Water Works $170.03 C & C Service, Inc. $100.00 All -Phase Electric Supply $72.24 Howard Park Hardware $25.67 Rose Exterminator Co. $42.00 619 BLACKTHORN Meadowbrook Golf Group, Inc. $7,450.00 TOTAL ALL CLAIMS $167,921.44 -2- South Bend Redevelopment Commission Regular Meeting— August 4, 2000 3. APPROVAL OF CLAIMS (Cont.) Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved the Claims submitted August 04, 2000, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS a. Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Removal of Dead/Dying Tree at 613 South St.) Mr. Hunt noted that the Redevelopment Commission owns the property at 613 South Street. The South Bend Parks & Recreation Department notified us in writing that a dead/dying tree located at 613 South St. needed to be removed. Mr. Giulioni presented the Commission with estimates from two tree removal companies. The first estimate was from Cannady Tree Service for $550, and the second was from Cruz Tree Service for $450. He recommended that the Commission approve the proposal from Cruz Tree Service for the removal of the tree. Upon a motion by Mr. Kahn, seconded by Mr. Caldwell and unanimously carried, the Commission approved the proposal from Cruz Tree Service for the removal of the dead/dying tree. -3- COMMISSION APPROVED THE CLAIMS SUBMITTED AUGUST 04, 2000, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS COMMISSION APPROVED THE PROPOSAL FROM CRUZ TREE SERVICE FOR THE REMOVAL OF DEAD/DYING TREE (613 SOUTH ST.) South Bend Redevelopment Commission Regular Meeting— August 4, 2000 5. OLD BUSINESS (Cont.) b. Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Lease Rate Analysis for Palais Royale Retail Space) Mr. Giulioni noted that the Palais Royale Retail Space needs to be re- appraised before it can be offered for lease. Two appraisals are required. We have a proposal from R.E. Pitts & Associates, Inc. in the amount of $1,500; and a second proposal from F. M. Properties in the amount of $1,200. Mr. Giulioni noted that both proposals fall within the usual cost for such services. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved proposals from R.E. Pitts and F.M. Properties for professional services in the South Bend Central Development Area. (Lease Rate Analysis for Palais Royale Retail Space) 6. NEW BUSINESS Mr. Jon Hunt asked that Item 6.j be added to the agenda. a. Public Hearing on Resolution No. 1783 amending the South Bend Central Redevelopment Plan. Mr. Jon Hunt noted the following items related to the Public Hearing are in the file: 1) an original Notice of Public Hearing concerning the South Bend Central Development Area Development Plan; 2) an affidavit of the Advertising Manager of the South Bend Tribune that Notice of Public Hearing was published in that daily newspaper on July 22, 2000; 3) a copy of the July 22, 2000 -4- COMMISSION APPROVED PROPOSALS FROM R.E. PITTS AND F.M. PROPERTIES FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (LEASE RATE ANALYSIS FOR PALAIS ROYALE RETAIL SPACE) PUBLIC HEARING ON RESOLUTION NO. 1783 South Bend Redevelopment Commission Regular Meeting— August 4, 2000 6. NEW BUSINESS (Cont.) a. continued... Tri- County news in which the Notice of Hearing is published; 4) a statement from Michael Giulioni that on July 18, 2000 he sent a copy of the Notice of Hearing to the affected property owner; and 5) a copy of Resolution No. 1783 which is the subject of the hearing. Mr. Hunt also noted that as of 10:00 a.m., no written remonstrances were received. Mr. Hunt noted the Resolution No 1783 amends the South Bend Central Development Area Development Plan by adding property located at 710 N. Niles Ave. to the acquisition list. This is the former Yellow Cab site. Mr. Robert Hunt opened the public hearing for anyone who wished to speak regarding Resolution No. 1783. There being no one who wished to speak, Mr. Hunt closed the public hearing for whatever action the Commission wished to take. b. Commission approval requested for Resolution 1783. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 1783, Amending the South Bend Central Redevelopment Plan. (710 N. Niles Ave.) c. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 1242 E. Howard St. (Betty Chism) -5- COMMISSION APPROVED RESOLUTION NO. 1783, AMENDING THE SOUTH BEND CENTRAL REDEVELOPMENT PLAN (7 10 N. NILES AVE) South Bend Redevelopment Commission Regular Meeting— August 4, 2000 6. NEW BUSINESS (Cont.) c. continued... Mr. Jon Hunt noted that the loan is in the amount of $10,100.00 to be used for home improvement. The grant amount is $4,255.68. Upon a motion by Mr. Kahn, seconded by COMMISSION APPROVED THE LOAN AND GRANT Ms. Jones and unanimously carried, the IN CONNECTION WITH THE AFFORDABLE LOAN Commission approved the Loan and Grant in PROGRAM FOR PROPERTY LOCATED AT 1242 E. connection with the Affordable Loan Program HOWARD ST. (BETTY CHISM) for property located at 1242 E. Howard St. (Betty Chism) d. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 730 Haney. (Jerry Newhouse) Mr. Jon Hunt noted that the loan is in the amount of $3,250.00 to be used for home improvements. The grant amount is $1,265.55. Upon a motion by Mr. Kahn, seconded by COMMISSION APPROVED THE LOAN AND GRANT Ms. Jones and unanimously carried, the IN CONNECTION WITH THE AFFORDABLE LOAN Commission approved the Loan and Grant in PROGRAM FOR PROPERTY LOCATED AT 730 connection with the Affordable Loan Program HANEY (JERRY NEWHOUSE) for property located at 730 Haney. (Jerry Newhouse) e. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property located at 1206 Blaine Ave. (Helen M. Heintzelman) Mr. Jon Hunt noted that the loan is in the amount of $3,900.00 to be used for home improvements. The grant amount is $2,464.00. 10 South Bend Redevelopment Commission Regular Meeting— August 4, 2000 6. NEW BUSINESS (Cont.) e. continued... Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property located at 1206 Blaine Ave. (Helen M. Heintzelman) E Commission approval requested for Loan and Grant in connection with the Affordable Loan and Grant Program for property located at 617 E. Haney. (Raymond Garcia, Sr. & Jimmie Lou Garcia) Mr. Jon Hunt noted that the loan is in the amount of $6,700.00 to be used for home improvements. The grant amount is $6,121.50. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property located at 617 E. Haney St.(Raymond Garcia, Sr. & Jimmie Lou Garcia) g. Commission approval requested for Resolution No. 1786 approving an application for real property tax deduction for property located at 3815 Ralph Jones Dr. in the Airport Economic Development Area. (Ralph Jones Partners L.P.) Ms. Moran presented the staff report on the project. Ralph Jones Partners L.P. proposes to build a 25,000 sq. ft. build to suit, multi - purpose, single tenant industrial building. The building will be constructed on approximately 3.22 acres of land. The total cost for the building will be an estimated $1,400,000. The building will be used EFA COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 1206 BLAINE AVE. (HELEN M. HEINTZELMAN) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 617 E. HANEY ST. (RAYMOND GARCIA, SR. &JIMMIE Lou GARCIA) South Bend Redevelopment Commission Regular Meeting— August 4, 2000 6. NEW BUSINESS (Cont.) g. continued... to manufacture and distribute tools for the construction trades. The tenant's main product is a tool that mechanically ties reinforcing steel. Per the petition, it is estimated that this project will create eleven (11) new permanent jobs within the first year, representing a new annual payroll of $425,000 and will maintain three (3) existing permanent full time jobs with an annual payroll of $125,000. A review of the tax abatements previously granted finds that the petitioner has not been granted any previous tax abatements; however the partners of Ralph Jones Partners L.P. have been associated with several previous tax abatements. The associated entities are in compliance with the reporting requirements for the previous abatements. The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. A review of the South Bend Redevelopment designation 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 six (6) year real property tax abatement. 5:2 South Bend Redevelopment Commission Regular Meeting— August 4, 2000 6. NEW BUSINESS (Cont.) g. continued... Without abatement, based on an estimated project cost of $1,400,000 and a constant tax rate, the taxes to be paid over the six -year period would be approximately $417,170. With abatement, the taxes paid over the six -year period are estimated to be approximately $171,967. Therefore, the cost of the abatement would be approximately $245,203. Upon a motion by Mr. Caldwell, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 1786 approving an application for real property tax deduction for property located at 3815 Ralph Jones Dr. in the Airport Economic Development Area. (Ralph Jones Partners L.P.) h. Commission approval requested for Resolution No. 1787 approving an application for personal property tax deduction for property located at 1217 S. Walnut St. in the Sample -Ewing Development Area. ( Kokoko Wire Industries Corp.) Ms. Moran presented the staff report on the project. Kokoku Wire Industries Corporation proposes to purchase new multi - functional machinery and equipment with dry drawing wire, pay -off, dead block coil, descaler, and pointing capabilities. The machinery will increase production and produce a wider variety of products. This purchase will allow the company to increase their competitive position. The estimated cost of the equipment is between $430,000 - 530,000. Per the petition, it is estimated that this project will not create any new jobs; however, the In COMMISSION APPROVED RESOLUTION NO. 1786 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3815 RALPH JONES DR. IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (RALPH JONES PARTNERS L.P.) South Bend Redevelopment Commission Regular Meeting— August 4, 2000 6. NEW BUSINESS (Cont.) h. continued... investment will enable sixty -two (62) permanent full time and one (1) part-time jobs with an annual payroll of $1,785,600 to continue. 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 through Resolution No. 1694 -89 on January 23, 1989. The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. A review of the South Bend Redevelopment designation areas finds that the property is located in the Sample -Ewing 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 the petitioner meets the qualifications for a five (5) year personal property tax abatement. Without abatement, based on an estimated project cost of $480,000 and a constant tax rate, the taxes to be paid over the five -year period would be approximately $48,807. With abatement, the taxes paid over the five -year period are estimated to be approximately $16,020. Therefore, the cost of the abatement would be approximately $30,786. i. -10- South Bend Redevelopment Commission Regular Meeting— August 4, 2000 6. NEW BUSINESS (Cont.) h. continued... Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1787 approving an application for personal property tax deduction for property located at 1217 S. Walnut St. in the Sample -Ewing Development Area. (Kokoko Wire Industries Corp.) i. Commission approval requested for Resolution No. 1788 approving an application for Real Property Tax Deduction for property located at 5759 Brick Road in the Airport Economic Development Area. (GWSB Properties, LLC) Ms. Moran presented the staff report on the project. GWSB Properties, LLC will construct a 198,000 sq. ft. warehouse using tilt wall concrete construction on approximately 12.8 acres of land. The project is estimated to cost $5.5 million. The building will be occupied by Global Motorsport Group, Inc. as a distribution center. Global distributes motorcycle parts and accessories. Per the petition, it is estimated that this project will create 50 new, permanent, full time jobs within the first year, representing a new annual payroll of $1.3 million. 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. -11- COMMISSION APPROVED RESOLUTION NO. 1787 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1217 S. WALNUT ST. IN THE SAMPLE -EWING DEVELOPMENT AREA. (KOKOKO WIRE INDUSTRIES CORP.) South Bend Redevelopment Commission Regular Meeting— August 4, 2000 6. NEW BUSINESS (Cont.) i. continued... A review of the South Bend Redevelopment designation 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. Without abatement, based on an estimated project cost of $5,500,000 and a constant tax rate, the taxes to be paid over the ten -year period would be approximately $2,731,471. With abatement, the taxes paid over the ten -year period are estimated to be approximately $1,379,393. Therefore, the cost of the abatement would be approximately $1,352,078. Mr. Cupp thanked the staff for the last minute effort they made to get this report ready for the meeting. GWSB is on a fast schedule, hoping to get their building constructed this year. He noted that Global Motorsports has been in business for over 30 years. They have several distribution centers in several locations in the U.S. as well as overseas. Upon a motion by Mr. Caldwell, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1788 approving an application for Real Property Tax Deduction for property located at 5759 Brick Road in the Airport Economic Development Area. (GWSB Properties, LLC) -12- COMMISSION APPROVED RESOLUTION NO. 1788 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 5759 BRICK ROAD IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (GWSB PROPERTIES, LLC) South Bend Redevelopment Commission Regular Meeting— August 4, 2000 6. NEW BUSINESS (Cont.) j. Commission approval requested for Lease with Precise Audio in the South Bend Central Development Area. Mr. Giulioni noted that at the July 21 meeting the Commission approved the proposal from Precise Audio to lease retail space on the ground floor of the Leighton Plaza garage. There were no changes in the Lease from the terms accepted at the 7/21/00 meeting. Upon a motion by Mr. Caldwell, seconded by Mr. Kahn and unanimously carried, the Commission approved the Lease with Precise Audio in the South Bend Central Development Area. Ms. Greene asked permission to add item 6.k. to the agenda. There was no objection and item 6.k. was added. k. Commission approval requested for Parking Agreement with Standard Federal Bank to lease parking spaces in the Leighton Plaza Garage in the South Bend Central Development Area. Ms. Greene explained that Standard Federal has agreed to pay $35.00 per month for six parking spaces. That is our standard rate. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the Parking Agreement with Standard Federal Bank to lease parking spaces in the Leighton Plaza Garage in the South Bend Central Development Area. -13- COMMISSION APPROVED THE LEASE WITH PRECISE AUDIO IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA COMMISSION APPROVED THE PARKING AGREEMENT WITH STANDARD FEDERAL BANK TO LEASE PARKING SPACES IN THE LEIGHTON PLAZA GARAGE IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting— August 4, 2000 7. PROGRESS REPORTS Mr. Giulioni acknowledged the hard work of Redevelopment's summer interns: Tom Nichol, a Senior at Notre Dame majoring in Government; and Jeff Meyer, a Senior at Ball State studying Regional Planning. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for Friday, August 18, 2000 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Ms. Jones made a motion that the meeting be adjourned. Mr. Faccenda seconded the motion and the meeting was adjourned at 10:29 a.m. -14- PROGRESS REPORTS NEXT MEETING ADJOURNMENT G Donald Inks, Director