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HomeMy WebLinkAbout11-07-88 Human Resources & Economic Development eatt ntttuu Evart HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE Wa tilt Calaway Coiwd1 of titt ettj of Ewan; With: The November 7, 1988 meeting of the Human Resources and Economic Development Committee was called to order by its Chair Person Council Member Steve Luecke at 7: 00 p.m. in .the. Council Chambers. Persons in attendance included Council Members: Luecke, Soderberg, Puzzello, Slavinskas, Zakrzewski, Coleman, Duda, Niezgodski, and Voorde; Mayor Kernan, Carolyn Pfotenauer, James Wensits, Ann Kolata, Mr. F.J. Nimtz, Jon Hunt, Les Fox, Dick Doyle, Mr. T. Brooks Brademas, Michael Waite, Mr. Jerry Hammes, Mr. James Cronk, Mr. George Hurtz, members of the public, members of the news media, and Kathleen Cekanski-Farrand. Council Member Luecke noted that the purpose of the committee meeting was to hear a presentation by the City Administration an the Studebaker Corridor. Mayor Kernan stated that approximately two years ago the Department of Economic Development began a planning study. The document was released approximately one year ago. A citizens advisory committee reviewed that document. This committee was made upon of representatives from the City, the School Corporation, the South Gate Business Association, The Rum Village Neighborhood Association, the CHamber of Commerce, Project Future, and other concerned interest groups. The report recommended a two phase plan with the first phase addressing "how to deal with the Studebaker Corridor" and the second phase dealing with a program approximately five years thereafter. Mayor Kernan then presented a slide presentation entitled "Studebaker Corridor Revitalization Strategies" . He noted that 25 years ago this December the Studebaker Plant closed. He noted strengths and weaknesses of the area making up the corridor. As a part of phase one, a $4,900, 000.00 bond issue was being recommended for acquisition and demolition. The buildings which would be acquired and demolished would include the Avanti and Bordon buildings. The Transwestern Building as well and the Standard Surplus Building currently have an uncertain status. It was also recommended that the Police Credit Union building be relocated with the minimum amount of disruption to that facility. Phase one would also address part of the sixty acre track of land commonly known as the "fringe area" with plans to acquire 16 of the 60 acres and to make those parcels available in increments of one half acre to two acres for compatible developments. Mayor Kernan then highlighted the basic uses of the bond money: $1, 320, 000.00 for demolition of the Transwestern Building. $1,350, 000. 00 acquisition and demolition of the Bordon, Avanti and Standard Surplus Buildings and relocation of the Police Credit Union $1,000, 000. 00 acquisition, demolition and relocation in the 60 acre fringe area $1,230, 000. 00 for bond issuance costs, roads, streets, utilities, curbs, lighting and landscaping. Mayor Kernan noted that currently there are approximately 50 businesses in the Studebaker Corridor which employ 1,500 people. Allied alone employs 800 employees and is utilizing the old Studebaker building. The entire area generates $420,500. 00 in property taxes each year. With phase one, 30 new businesses are projected to be opened with 450, 000 square feet of new construction. The construction costs would mean $13,500, 000. 00 investment in the area with approximately 900 new employees. Mayor Kernan then showed an artist rendering of "target area number two. " He then reviewed various slides which set forth that the bond issue would result in . 11 per $100 of assessed valuation. The following is representative of that: Value of Home Assessed Value Property Tax Per Year $33,500. 00 $2,840. 00 $3 . 10 $46, 000. 00 $4, 300. 00 $4. 70 $54,500. 00 $5, 130. 00 $5. 60 $69,500. 00 $8,750. 00 $9.56 Mayor Kernan noted that approximately 300 volunteers are currently carrying petitions. He introduced Les Fox and Jerry Hammes who are the co-chairpersons of the bond drive. Mr. F.J. Nimtz, the fourteen year chairman of the Redevelopment Commission, then highlighted that block six in Monroe Park represent fine examples of the public and private sectors working together. Mayor Kernan noted that petitions are available and that persons who carry them must be a property owner and would solicite signatures of property owners living within the city limits. Human Resources and Economic Developement Commitee Cont'd page 2 Council Member Voorde noted that when American Sign wanted to make a substantial financial investment in the community that they looked at the Studebaker Corridor. Unfortunately because of the bifurcated ownership, there investment was ultimately made in the Airport Industrial Park. He also questioned what marketing tools would be used and whether a private developer was under consideration. The Mayor stated that marketing and private developers were under consideration, however, no decision had been made. Ann Kolata noted that the Monroe Park area was sold out in a two year period, however, the downtown area has progressed much more slowly. She noted that commercial brokers and real estate commissions were being discussed, however, no decision had been made. Council Member Soderberg questioned whether the Bordon Building should be on the demolition list. He questioned whether it was possible to restore the building. THe Mayor noted that it was purchased for $15, 000. 00 earlier this year and it is believed to be incompatible. Council Member Soderberg also noted that in light of the Studebaker closing a more diversified business community has resulted throughout the City. Council Member Niezgodski questioned the Police Credit Union situation. He specifically asked why the problems associated with its current location were not foreseen. He noted that Mr. David Norris helped the Police Credit Union representatives throughout the process. Mr. Hunt stated that once the decision to locate in that area was made, that the City did not stand in their way. He stated that he believes that it was a bad location and is not an inappropriate use, however, is in an inappropriate location. Mr. Hunt further noted that alternative locations are being recommended with a 1/2 acreage parcel being under consideration. Council Member Duda stated that the potential for jobs in the Studebaker Corridor is of paramount concern to her. She questioned whether covering the Transwestern Building with an exterior facade is a possibility. She also questioned whether help would be possible for both the exterior and/or the interior. Mayor Kernan noted that the interior of the Standard Surplus Building is currently very functional and it meets the needs set forth by Jeff Newman. He stated that general obligation bond monies would not be used for either exterior or interior systems. He stated that monies through the BDC or other possible entities like that would be those recommended. The only dollars from the General Obligation Bond which could be made available would deal with the Human Resources and Economic Developement Commitee Cont'd page 3 removal of hazardous wastes, the removal of asbestos and the actual demolition of buildings or parts thereof. Council Member Slavinskas questioned whether there was a "ugliness index" with regard to the various buildings in determining which ones would be saved or not saved. The Mayor stated that such factors as the use, location, and condition of the structure are all criteria in determining compatibility for the overall development of the area. Mayor Kernan further noted that phase two would be approximately five years down the road and it would address such buildings as the Shetland Building, South Bend Warehouse, and the Foundary Building. Council Member Luecke questioned the potential uses for the Transwestern Building and the Mayor noted that parking is an increasing problem in the downtown area and he would not rule this out. Council Member Zakrzewski voiced favorable comments regarding the bond issued. Mr. Michael Waite questioned why the Redevelopment Commission would be floating the bond and why the City was not going forward with a General Obligation Bond which would directly involve the City Council. Mayor Kernan stated that the City is following all State law provisions and that the process is a very public one. He further stressed that he is not avoiding the Council and that the Council would be updated throughout the entire process. He further stated that safeguards are built into the system because of the very nature that these are public funds. Mr. T. Brooks Brademas stated that individuals should be concerned about the proposed 15 million bond issue being recommended by School City. He stated that there were several items such as facade loans, etc. which should be considered for owners within the area. He believed that a well thought out relocation plan is a must. He referred to a University of Michigan study. He further stated that he believes that much of the demolition costs could be reduced in the way that the demolition is approached. He stated that he was "100%" behind the proposed bond issue, however, he would not tear down the Standard Surplus Building. Mr. George Hertz of the Board of Directors of the Police Credit Union stated that membership is approximately 2,400 individuals. He stated that they were not against progress in the area, however, they did not want to be adversly affected by development of the Studebaker Corridor. He stated that the credit union is for progress so long as it Human Resources and Economic Developement Commitee Cont'd page 4 does not have a direct detrimental effect to their location and their membership. Mayor Kernan stated that he would work with the Police Credit Union Board in attempting to resolve the location and relocation issues. Various questions were then raised by members of the public with regard to the proposed bond issue. Following further discussion the meeting was adjourned at 9: 10 p.m. Respectfully submitted, Council Member Steve Luecke, Chair Person Human Resources and Economic Development Committee SL:srk Human Resources and Economic Developement Commitee Cont'd page 5