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HomeMy WebLinkAbout10-09-89 Human Resources & Economic Development (ltummt#frr &port HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE tro the fdmmnwn Qtoumti of Up Cittig of onto Ernh: The October 9, 1989 meeting of the Human Resources and Economic Development Committee was called to order by its Chair Person Council Member Steve Luecke at 4:55 p.m. in the Council informal meeting room. Persons in attendance included Council Members: Puzzello, Niezgodski, Luecke, Soderberg, Slavinskas, Zakrzewski, Coleman, Duda, and Voorde; John Leisenring, Don Porter, Dick Nussbaum, Jenny Pitts Manier, Ann Kolata, David Norris, Larry Koepfle, John Boyer, and Kathleen Cekanski-Farrand. Richard Nussbaum, Council Member Luecke and Kathleen Cekanski-Farrand gave a brief update with regard to the tax abatement lawsuit to the committee. A copy of the "Statement In Opposition By The City of South Bend, Indiana" was given to all Council Members present. (copy attached) The committee then reviewed Resolution No. 89-69 which is a confirming resolution for the real estate commonly known as 530 Niles Avenue for a three year real property tax abatement for Orkin Pest Control, Inc. It was noted that the Department of Economic Development would like the Council to continue this resolution in light of the design review issues which will be addressed at the meeting of October 19, 1989. It was noted that a formal motion to that effect would have to be made at the regular Common Council meeting. The committee then reviewed Bill No. 84-89 which would appropriate $750, 000 of Section 108 loan funds plus earned interest for use in the West Washington/Chapin Revitalization Area. It was noted that this is the second step in a two step process. The first step was the authorization by the Council to allow the Mayor to submit the loan application for the 108 loan funds. Following further discussion, Council Member Voorde made a motion seconded by Council Member Zakrzewski that Bill No. 84-89 be recommended favorably. The motion passed. The committee then reviewed Bill No. 85-89 which would appropriate $350, 000 to accounts within the Department of Economic Development. It was noted that $335, 000 of the Bill would be used to acquire parcel E 3-1 commonly referred to as the "Opelika Building". Human Resources and Economic Development Committee October 9, 1989 Page 2 It was also noted that $15, 000 of the appropriation would be for the South Bend Central Development Area for public improvements for the extension of Seitz Park which would include off-street parking, lighting, and landscape improvements. Council Member Soderberg voiced concern in light of the fact that $112, 000 for the Seitz Park improvements were originally proposed. Mr. John Boyer spoke against the proposed appropriation of $335, 000 for the Opelika Building. He noted that he acquired the building in 1983 and desired to do a residential and retail combined use within it. He noted that he has paid for over 80 pages of blueprints and had 5 presold condominiums sold, however needed two additional sales for the project to begin, or a loan of $300, 000. He was unable to receive financing. Mr. Boyer then noted the various innovative ideas he has utilized with regard to the Mole Hole. He also noted that 60 parking spaces would be involved and that there are two buildings in the Opelika .Building. The southern one would be demolished, and by the fall of 1990 he would be moving his current location to that facility. Council Member Voorde questioned the plans for the second and third floor. He was advised that it would depend on the market place. He was also advised that the concept of residential use was not a "dead issue". He noted that there are 18, 000 square feet on each floor. Council Member Coleman noted that as a member of the East Race Waterway Commission that the building in question is a key location. He voiced support of development in a timely manner. Council Member Puzzello inquired with regard to Mr. Boyer's immediate plans. Ann Kolata noted that the Mole Hole is a wonderful asset, however, there must be a financial proposal to go forward to considering "gap financing. " There is continuing concern over the timetables involved as well as the funding available. She stated that the type of proposed use is proper but that Code Enforcement has noted continuing deteriorating conditions. Council Member Coleman noted that the building was placed on the acquisition list by the City several months ago, and it should have been a signal to move ahead on the project. Human Resources and Economic Development Committee October 9, 1989 Page 3 Council Member Luecke briefly summarized the current position. He noted that the Mole Hole operation would be moved to the Opelika Building. There is interest to lease approximately 14, 000 square feet with a need for two additional leases to pay for the exterior improvements needed. Tuck pointing was necessary and replacement of the first floor windows was proposed for the Spring of 1990, as well as completion of masonary work. Mr. Boyer stressed that he needed "gap financing" . Following much discussion, Council Member Luecke questioned the Council Attorney whether the proposed $335,000 line item entitled acquisition fund could be deleted from Bill No. 85- 89. He was advised that it could. Ann Kolata stated that there must be a firm commitment with regard to time tables. Council Member Slavinskas asked whether funds were available for loans for this type of project. He noted that Mr. Boyer has a strong desire and enthusiasm for the development of the property. He stated that he preferred the private sector to do such development as oppossed to the government. He stressed that the parties should be brought together for a continuing educational process and suggested that a six- month to one year extension be considered. Council Member Voorde questioned whether the commission has a goal for the north building. He noted that everyone agrees that the south building should be demolished. Ann Kolata stated that the building would be placed for sale if acquired. It was noted that it is a "A-3" Zoning Area. She stated that the private sector would dictate the overall use within the A-3 classification. Council Member Soderberg stated that he was not in favor of putting the building on the acquisition list earlier. He stated that Mr. Boyer should be able to develop his own property, and stressed that he does not like the economic development becoming the landlord. He also stated that he was oppossed to an additional $15, 000 being used for the Seitz Park. Ann Kolata noted that the extension and the proposed $15, 000 appropriation would be to allow public parking. Following further discussion, Council Member Voorde made a motion seconded by Council Member Zakrzewski that Bill No. 85-89 be amended in the title by replacing the $350,000 with $15, 000 and to delete line item "UR89-003 Acquisition Fund $335, 000" and to replace the total to a figure of $15, 000. The motion passed. Human Resources and Economic Development Committee October 9, 1989 Page 4 Council Member Luecke offerred assistance to sit in on any meetings with regard to continuing the educational process between the Department of Economic Development and Mr. Boyer. Following further discussion, Council Member Zakrzewski made a motion seconded by Council Member Voorde that amended Bill 85-89 be recommended favorably to Council. The motion passed. Council Member Coleman questioned how much land is owned by the Department of Economic Development. He was advised that there are at least four parcels, and very little is available for sale in the East Bank Area. Council Member Luecke noted that Resolution No. 89-75 which is a confirming resolution for the property located at 209 North Main Street for a ten year real property tax abatement for "Main Street Row" has been asked to be continued. The continuance provides time to determine that 75% or more of the first floor will be developed as commercial or retail space, which is a condition of the 10 year abatement period. Council Member Voorde made a motion seconded by Council Member Slavinskas that Resolution No. 89-75 be continued. There being no further business to come before the commitee the meeting was adjourned at 6: 00 p.m. Respectfully submitted, Council Member Steve Luecke, Chair Person Human Resources and Economic Development Committee SL:srk (Originals of reports and Bills attached to the original of the minutes) . • HA KATHLEEN CEKANSKI-FARRAND / r ,y_e Attorney at Law Suite 202 First Bank Building 205 West Jefferson Boulevard South Bend,Indiana 46601 (219)288-4935 DATE: October 9, 1989 TO: The South Bend Common Council FROM: Kathleen Cekanski-FarrandC� RE: Tax Abatement Lawsuit Dick Nussbaum and myself would like each of you to have a copy of the "Statement In Opposition By The City of South Bend, Indiana" which was filed in the pending tax abatement lawsuit against the City. As you can see it was filed October 5, 1989, the first day of a two day hearing. Judge Jourdan has taken the matter under advisement and will be ruling on the case on Tuesday, October 10th. We will keep you advised of the Court's decision. If any of you have any questions with regard to this document, which does not have the attachments (since the attachments themselves are almost an inch thick) please feel free to contact either Dick or myself at your convenience. Thank you. KCF:srk Attachment