HomeMy WebLinkAbout05-01-09 Longtime firm to make way for Transpo, Ignition Park
Office of the Mayor
NEWS RELEASE
May 1, 2009
11 a.m.
Longtime firm to make way for Transpo, Ignition Park
Contact:
Mikki Dobski, Director of Communications & Special Projects, 235-5855 or 876-
1564, Don Inks, Director of Economic Development, or Bill Schalliol, Economic Development
Planner, 235-9371
Two proposals approved today by the City’s Redevelopment Commission will take
another step towards the development of Ignition Park, part of South Bend’s two-site
state-certified technology park, and the move of Transpo’s headquarters to a new site.
The Redevelopment Commission authorized property acquisition and the relocation of
Ziolkowski Construction Inc., 1005 S. Lafayette Blvd., from the eastern edge of the
Ignition Park site as well as the second phase of marketing efforts related to Ignition
Park. The properties for acquisition include two separate sites in the block bounded by
Sample Street, Lafayette Boulevard, Broadway Street and Franklin Street.
Ziolkowski Construction is seeking to purchase the former PEI Genesis facility, 1915 N.
Bendix Drive, in the Airport Industrial Park, to which it hopes to relocate. The
Commission voted 3-1 to purchase the Ziolkowski properties for $910,000, and providing
additional relocation assistance to the company in accord with federal and Commission
guidelines. The total amount is capped at $1.81 million for both acquisition and
relocation expenses.
As part of a negotiated agreement for Redevelopment Commission assistance in the
relocation, Ziolkowski Construction has agreed not to seek tax abatement for necessary
renovations to the Bendix site to make it suitable for the company’s operations.
“Recently, there were four large vacant industrial buildings in the Airport Industrial Park
near the intersection of Voorde and Bendix, but the Census Bureau moved into one
building and Fortis Plastics has purchased and is locating its operation in the former
Capital Technologies building” said Bill Schalliol, economic development planner with
the City’s Department of Community and Economic Development. “The addition of
Ziolkowski Construction Inc. into this area will be an asset to the park, put a vacant
building back into use and allow for ZCI to have a unified campus site.”
Ignition Park is one of the two locations in South Bend that make up Indiana’s first two-
site State-Certified Technology Park. The other is Innovation Park at Notre Dame,
located on 12 acres on the city’s northeast side across from the Notre Dame campus,
where the first building already is under construction. Companies formed at Innovation
Park will be encouraged to move to Ignition Park, yet continue to receive support
services and other benefits from being part of the same state-certified technology park.
While construction won’t begin at Ignition Park for some time, Ziolkowski’s immediate
relocation is prompted by efforts to begin construction June 1 on the Transpo site, which
includes a portion of the Ziolkowski property.
Transpo had planned for years to move to the former Studebaker Corridor, now known as
Ignition Park. But when the potential community value of an undivided Ignition Park
became clear, Transpo officials worked with the City to relocate their planned facility
from the center of the site to its edge. This allows Ignition Park to concentrate on high-
potential technologies and ventures, as well as the commercialization of nanotechnology
concepts inspired by the Midwest Institute for Nanoelectronics Discovery.
Ignition Park sits on the grounds of the former Studebaker Corp., the legendary auto
manufacturer that was the economic and innovative backbone of South Bend until closing
its doors in 1963. Since 2000, old abandoned buildings on the Ignition Park site have
been demolished in the state’s most aggressive brownfield reclamation effort to make
way for a high-tech manufacturing, commercialization and office complex of buildings
arrayed in a park-like environment
Also on Friday, the Commission approved an eight-month, $420,000 contract with The
Blue Waters Group, a Wisconsin firm with offices in South Bend. The contract will
continue the second phase of marketing/communication activities related to the
promotion of Ignition Park and economic-development activities in South Bend.
The contract, extending from May 1 through Dec. 31, includes development of electronic
communication initiatives, national media relations, outreach to entrepreneurs and
business leaders along with other promotional efforts.
Funding for the efforts comes from Tax Increment Financing revenue from the west-side
Airport Economic Development area. By law, TIF funds must be used for infrastructure
investment or services that benefit economic development in a designated area.
TIF districts are a public-financing method designed to capture the increased property tax
value that results from economic growth because of public and private investment. This
growth generates new tax revenues, which finance improvements in distressed or
underdeveloped areas where economic growth would not otherwise occur. The Airport
Economic Development Area, the largest TIF district in South Bend with more than 60
percent of the overall TIF resources, was expanded in 2007 to include LaSalle Square, the
Marycrest-Hurwich area along Western Avenue and the Sample-Ewing Development
Area, home to the Studebaker Corridor and Ignition Park.
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