HomeMy WebLinkAbout2. Minutes 6/5/09SOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
June 5, 2009
10:00 a.m. 227 West Jefferson Boulevard
Presiding: Marcia I. Jones, President South Bend, lndiana
1. ROLL CALL
Members Present:
Members Absent:
Legal Counsel:
Ms. Marcia Jones, President
Dr. David Varner, Vice President
Ms. Nancy King, Secretary
Ms. Stephanie Spivey
Mr. Greg Downes
Mr. Donald Alford
Mr. Charles S. Leone, Esq.
Mr. Lawrence Meteiver, Esq.
Redevelopment Staff: Mr. Don Inks, Director
Mrs. Cheryl Phipps, Recording Secretary
Mr. Robert Mathia, Economic Development Specialist
Ms. Jennifer Laurent, Economic Development Specialist
Mr. David Relos, Economic Development Specialist
Ms. Debrah Jennings, Property Manager
Others Present: Mr. Jeff Gibney, Executive Director
Mr. Tonl Price. Mayors Office
Dr. Virginia Calvin, Ivy Tech Connnunity College
Mr. Bob Placek, Ivy Tech Community College
Ms. Barbara Duncanson, Ivy Tech Community College
Ms. Moe Miller, Charles Hayes Con7n7unications
Mr. John Pharr, Holladay Corporation
Mr. Paul Pharr, Holladay Colporation
Ms. Rita Kopala
Ms. GlendaRae Hernandez
2. APPROVAL OF MINUTES
Ms. Marty Wolfson, Community Forum for Economic Dev
A. Approval of Minutes of the Regular Meeting of
Friday, May I5, 2009.
Upon a 1170t1On by MI-. Va]'nel', SECOllded by MS. COMMISSION APPROVED THE MINUTES OF THE
King a11d Unanll110US1y Cal'I'led, the CO111r111SSron REGULAR MEETING OF FRIDAY, MAY 15, ?009
approved the Minutes of the Regular Meeting of
Friday, May 15, ?009.
South Bend Redevelopment Connnission
Regular Meeting-June 5, 2009
3. APPROVAL OF CLAIMS
Redevelopment Commission Claims submitted June 5, 2009 for approval.
305 FUND SBCDA BOND
Majority Builders, Inc.
324 AIRPORT AEDA
Concrete & Asphalt Recycling, LLC.
Indiana Michigan Power
Baker & Daniels
South Bend Parks Recreation Dept.
Wightnan Petrie
Indiana Michigan Power
Indiana Michigan Power
DHA
DHA
The Blue Waters Group
Meridian Title Corp
420 FUND TIF DISTRICT-SBCDA GENERAL
South Bend Parks Recreation Dept.
Rose Pest Solution
Ampco System Parking
Wightnan Petrie
Sign Designs
7,998.62 101 N Michigan Exterior
7,226.70 LaSalle Square Lot
20.61 420 S. William St.
1,080.00
2,824.00 Lawn Maintenance
44,167.50 Phase II Environmentals
149.02 1010 N Bendix Dr.
7.00 501 Wenger St.
13,770.00 Sui-~~ey Work
1,672.00 Survey Work
12,315.70 MIND Project Area
556,972.45 Ziolkowski Properties
452.00 Lawn Maintenance
93.00 LaSalle Hotel Pest Control
225 S. Main St Parking Lot /
2,302.54 121 S. St. Joseph Surface Lot
118 S. William St. (The
1,205.00 Manor)
685.00 Colfax Landing Site Sign
422 TIF DISTRICT WEST WASHINGTON
South Bend Parks Recreation Dept.
Meridian Title Crop
R.E. Pitts & Associates, Inc.
Jerome E. Michaels, MAI
92.00 Lawn Maintenance
100.00 1045 W. Washington St.
3,350.00 Appraisal Services
3,850.00 Appraisal Report
430 FUND SOUTHSIDE DEVELOPMENT TIF AREA #1
South Bend Parks Recreation Dept. 94.00 Lawn Maintenance
454 FUND AIRPORT URBAN ENT. ZONE
Project lmpact 51,924.00 ,Iob Training Services
$ 712,351.14
2
South Bend Redevelopment Commission
Regular Meeting-June 5, 2009
3. APPROVAL OF CLAIMS (CONT.)
Upon a motion by Ms. King, seconded by Mr. Varner
and unanimously caT-;•ied, the Coinmission approved the
Claims submitted June 5, 2009, and ordered checks to
be released.
4. COMMUNICATIONS
(1) Communication from Joseph Tillman,
Progressive Urban Industries
TO: ll/lal"CIa J011es
Redel~elopment Commission President
TO 11'110179 It 179x!]' C011Ce171,
j l1'I,Sh t0 /'adCe gl'eUr C'.l"CC'17(1017 r0 1%Olfl" 1"C'SJ7017SE' r0
my letter uf5-11-09. 1'ou state that the cil~~'s
adn9inistrution of HUD-funded projects does not
.full under the sclper~~ision of the Rede~~elopment
Commis~sio~9 1 bclicl~e this assertion to be incorrect
bused oil the follo~ring facts:
1. On the Redevelopment Commission 11~eb site it
is stated that tJte Conln9ission is cl2crl~red with the
reshonsihilit~~ of e.~-unri~ling areas of ~thc cih~ that
are hlighted and in r~eecl ufde~~elopmeilt.
Geitercrlh~, these t1~pcs of.ftu9ds crre HUD fiords,
1i•hiclt ~n•e .cuhject to tJle pro~~i.5ions of ~sz~ction 3.
Z. Under IC 36-7-14-Z?.Z 1rhe~7el~er properh% is
granted or sold to the Urban Elttethrise
~.SSOelatlon that, annUllg 0th e1' 1"eSpOnSlblh(IeS, 1 f
the ~~ropertl• is demolished or rehuhhed the
prol~isioils of~CFR 135.1 he enforced.
1 am ustoin9dcd h1~ ~•otn- efforts to puss this
respo~tsihilih• opt. Yotr should knoii• full 1EC11 that
the Redc 1~elopment C'unnnissiun is uccountuhle, for
c>llforeing thc~ Icnr. Please stop pus.t~ing the buel~
COI?Ce1711ng )'0211' re.Sj)Ol'1,5'1b1~1rle.S a177d 111101"171 dle
COMMISSION APPROVED THE CLAIMS
SUBMITTED ,TUNE $, 2009, AND ORDERED THE
CHECKS TO BE RELEASED
South Bend Redevelopment Commission
Regular Meeting -June 5, 2009
4. COMMUNICATIONS (CONT.)
1. continued...
huhlic o f :>>oan• dust, hrc~scrnt ctnc] futtTre ~~f fo~~ts to
comply Frith tl~c~ lair.
Res7~ectfull>>,
Jose1~1T Tillnicm
PI"D~PPS'.571'C' Ul•~JU11 117L~1/s'h"1 C'S
Mr. Inks noted that staff does not believe the Code
of Federal Regulations applies to the Commission,
but we believe it is appropriate to refer his letter to
Iegal counsel and Iet them look into it and help us
draft a response to Mr. Tillman. Commissioners
agreed and the matter was referred to Legal.
5. OLD BUSINESS
There was no Old Business.
6. NEW BUSINESS
A. Tas Abatements
(1) Resolution No. 2588 appro~~ing an
application for real property' tax deduction
for propert~~ kno~~-n as Lot 2 in the
Portage Prairie area of the Airport
Economic Development Area. (Ontario
Partners)
Mr. Mathia have the report on the project.
Ontario Partners intends to construct a
55,000,000 development knoY~m as the
Ontario Building in the Portage Prairie
Development Area. It will be a speculative,
157,500 sft, light industrial building that will
house multiple tenants performing a variety
of business functions, such as medical
supply, data storage, food/general
COMMISSIONERS DIRECTED LEGAL COUNSEL TO
STUDY' THE MATTER MR. TILLMAN~S LETTER
RAISES AND DRAFT A REPLY TO MR. TILLMAN
THERE ~~'AS NO OLD BUSINESS
4
South Bend Redevelopment Commission
Regular Meeting .lune 5, ?009
6. NEW BUSINESS (CONT.)
A. Tax Abatements
(l) continued...
distribution, printing or light assembly. The
building will be constructed using pre-cast
concrete panels. The building will utilize
green building techniques such as florescent
lighting. The building will be the second in
the Portage Prairie Development Area which
is expected to produce a total of over
$350,000,000 in private investment. The
first speculative building was the Huron
Building which cu~~-ently has 60 people
working in it on a daily basis.
Because of the speculative nature of the
proposed project, the petitioners are facing
short deadlines. At this time they are still
collecting info~-~nation to support the tax
abatement petition. The information
provided to date can only support a base
abatement of three years. The petitioners are
requesting arsine-year abatement in
accordance with Section 5.7 (Tax
Abatement) contained in the Project
Agreement signed by the Commission and
the petitioners on July 21, ?006. In the
interest of consel~~ing time, the petition is
being submitted to the Commission for its
consideration at this time. The petitioners
intend to submit additional information prior
to the Common Cowlcil meeting to consider
their confirming resolution. At that time
final points will be awarded and the length of
the abatement tei7n set. For purposes of the
Redevelopment Commission we are
estimating the term at nine years to allow for
adjustment up to the full amount they have
requested. Anything less will result in a
South Bend Redevelopment Commission
Regular Meeting-June 5, 2009
6. NEW BUSINESS (CONT.)
A. Tax Abatements
(1) continued...
reduction in the amount of tax revenue
abated.
Assuming arsine-year abatement tei7n is
approved, the total taxes to be abated during
that tei7n are estimated to be X635,240. Total
taxes to be paid during the nine-year term are
estimated at $723,671. For comparison
purposes, if the tei711 became three years,
total taxes to be abated are estimated at
$268,416. Total taxes to be paid over a
three-year term are estimated at $184,554.
There are no estimates regarding creation of
new or existing, peilnanent, full or part-time
jobs regardin~~ the building due to the
speculative natw-e of the project.
1. Neither Waggoner Farm nor Ontario
Partners has received a previous tax
abatement. The Huron Building received a
nine-year real property tax abatement on
August 14, 2006. Holladay Properties,
developer for the Ontario and Huron
Buildings, has received previous tax
abatements through various limited
partnerships and limited liability
corporations.
2. The property is properly zoned for the
proposed project.
3. The property is located in the Airport
Economic Development Area. ~~~hich is a Tax
Increment Allocation Area; therefore, the
petition for real property tax abatement must
6
South Bend Redevelopment Commission
Regular Meeting -.lane 5, 2009
6. NEW BUSINESS (CONT.)
A. Tax Abatements
(1) continued...
fast be approved by the South Bend
Redevelopment Commission.
4. A review of the Tax Abatement
Ordinance finds that the petitioner can meet
the qualifications for up to a nine-year real
property tax abatement.
Mr. John Phair noted that the Ontario
building will be of similar style as the Huron
Building and 8,000 sft lvger. A start date for
construction has not been determined. They
are negotiating with potential tenants. The
financing environment is much tighter and
requires some preleasing. As soon as
Ontario Partners can secure some leases and
financing, they will move ahead. They need
tax abatement to be competitive in today's
leasing environment.
Mr. Varner noted that except in the tiist year
of the project when taxes are 100% abated,
even abated projects pay more in taxes than a
vacant piece of property.
Upon a motion by Ms. King, seconded by
Mr. Varner and unanimously can•ied, the
Commission approved Resolution No. ?588
approving an application for real property tax
deduction for property known as Lot ? in the
Portage Prairie area of the Airport Economic
Development Area. (Waggoner Fa17n
Development LP/Ontario Partners)
COMMISSION APPROVED RESOLUTION NO. 2588
APPROVING AN APPLICATION FOR REAL
PROPERTI' TAX DEDUCTION FOR PROPERTI'
KNOV/N AS LOT 2 IN THE PORTAGE PRAIRIE
AREA OF THE AIRPORT ECONOMIC
DEVELOPMENT AREA. (WAGGONER FARM
DEVELOPMENT LP'ONTARIO PARTNERS)
7
South Bend Redevelopment Commission
Regular Meeting -June 5, 2009
6. NEW BUSINESS (CONT.)
Mr. Inks asked permission to consider item 6.C.(1) out
of order and at this point in the meeting. There was no
objection and the item was so moved.
C. Airport Economic Development Area
(1) Staff report on adding properties to the
Acquisition List (E. Sample, 914 S.
Lafayette, 400 blk W. Indiana)
Mr. Inks noted that in the past staff would
simply bring a declaratory resolution to the
Commission to add properties to an
acquisition list. Staff would like to institute
some preliminary actions prior to taking that
step. We would like to ask the
Commission's permission to study the
potential for acquiring the properties,
including ordering appraisals, or estimates of
acquisition costs, and survey and title work
to get a truer financial picture prior to adding
property to the acquisition list; then staff
would bring the results of the study to the
Commission with a recommendation about
adding the property to the acquisition list.
With the Commission's authorization, based
on the study, staff would then prepare a
resolution to add the property to the
acquisition list.
Mr. Gibney gave the report on the properties
staff recommends adding to the acquisition
list of the AEDA.
Under the new statutory requirements that
took effect in .Iuly 2008, the Commission
must, through a deliberate action, direct staff
to prepare the appropriate documentation to
amend a development plan. h1 the case of an
amendment to the resolution or plan for an
South Bend Redevelopment Conuuission
Regular Meeting -.Lune 5, ?009
6. NEW BUSINESS (CONT.)
C. Airport Economic Development Area
(1) continued...
existing redevelopment project area, the
Commission must dete~-~nine the following:
(1) The amendment is reasonable and
appropriate when considered in relation to
the original resolution or plan and the
purposes of this chapter;
(2) The resolution or plan, with the
proposed amendment, conforms to the
comprehensive plan for the unit
Upon satisfactory determination of the above
two points, the Commission shall cause to be
prepared the following data:
(A) Maps and plats showing the
boundaries of the area in ~~~hich property
would be acquired for, or otherwise affected
by, the establishment of a redevelopment
project area or the amendment of the
resolution or plan for an existing area;
(B) The location of the various parcels of
property, sheets, alleys, and other features
affecting the acquisition, clearance,
remediation, replatting. replanning, rezoning,
or redevelopment of the area;
(C) The parts of the area acquired, if any,
that are to be devoted to public purposes
under the redevelopment plan;
(D) Lists of the owners of the parcels of
property proposed to be acquired and an
estimate of the costs, if any, to be incui---ed
9
South Bend Redevelopment Commission
Regular Meeting-June 5, 2009
6. NEVV BUSINESS (CONT.)
C. Airport Economic Development Area
(1) continued...
for the acquisition and redevelopment of
property.
Staff requests the Commission's direction to
develop the appropriate documentation to
add the following three specific target areas
to the acquisition list for the AEDA:
Area 1 (Ivy Tech Campus Expansion
Area) This area is in the 200 400 blocks of
East Sample Street near the Ivy Tech
campus, and on either side of the new Ivy
Tech administrative offices. There are four
properties which would be acquired and
eventually h•ansferred to Ivy Tech for their
much needed expansion of classrooms,
storage, and parking. This would be a joint
effort between the Redevelopment
Commission and Ivy Tech, whereby the
Redevelopment Commission would purchase
and do certain demolition and facade work,
and Ivy Tech would do the interior work to
make these buildings classroom ready.
Area 2 (Ignition Park -Main Campus)
This is the Airgas property, 914 S Lafayette,
which is a pressw-ized tank tilling facility
located to the south of Hamilton Towing, on
the east side of Lafayette. Airgas is in the
process of moving its business to Elkhart,
and this purchase, along with Hamilton
Towing, would be of use on the fi•inge of
Ignition Park for future development.
Area 3 (Ignition Park -South Expansion)
This area is north of Indiana Avenue.
10
South Bend Redevelopu~ent Connnission
Regular Meeting -tune 5, 2009
6. NEW BUSINESS (CONT.)
C. Airport Economic Development Area
(1) continued...
between Franklin and Taylor Streets. As far
back as 1971, Indiana Avenue was identified
as the logical southern boundary for the
redevelopment of the Studebaker Co;7-idor. In
the 1995 Rum Village Neighborhood Action
Plan, the area north of Indiana and south of
the rail road tracks, between Franklin and
Prairie. was identified as "weak residential.'"
and it was suggested this area be redeveloped
as a business park. The addition of these
parcels for acquisition will be a first step in
the long overdue redevelopment of this area.
With the purchase of the Burton properties
(Waste Management) at the end of last year,
the Commission already owns more than half
of the land mass \vithin this area. The
acquisitions within this area would affect
eleven property owners, one of v~~hom has
ah•eady expressed interest in selling to the
Commission. Two others are vacant lots.
Staff requests Commission approval to begin
the process of adding these three specific
target areas to the acquisition list of the
AEDA's Development Plan.
Upon a motion by Mr. Varner, seconded by
Mr. King and unanimously carried, the
Commission authorized staff to begin the
process of addin~~ properties in the Airport
Economic Development Area to the
Development Plans Acquisition List.
COMMISSION AUTHORIZED STAFF TO BEGIN THE
PROCESS OF ADDING PROPERTIES IN THE
AIRPORT ECONOMIC DEVELOPMENT AREA TO
THE DEVELOPMENT PLAN'S ACQUISITION LIST
South Bend Redevelopment Commission
Regular Meeting-.lure 5, 2009
6. NEW BUSINESS (CONT.)
B. South Bend Central Development Area
(1) Staff report on adding properties to the
Acquisition List (Coveleski neighborhood)
Staff requests the Commissions direction to
develop the appropriate documentation to
add the following 17 parcels to the
acquisition list for the South Bend Central
Development Area:
a. The Manor at 118 S William (2 parcels)
b. Fred•s Transmission at 501 W
Western (3 parcels)
c. GMS Realty-Toyota Properties in the
300 & 400 blk of Western (10 parcels)
d. Schillings Camera Store at 325-329 S.
Lafayette (1 parcel)
e. Nor Systems Inc. Computer Store at 301
S. Lafayette (1 parcel)
The Manor is a former housing and program
center o~~~ned by the Madison Center which
has been vacant since summer 2008.
Originally built as a nursing home, the
building has become functionally challenged.
It would serve the William Street corridor as
a cleared development site to allow for new
residential or mixed use development. The
Commission has previously removed
inconsistent land uses in this corridor by
acquiring the former Basic Machine property
(William and LaSalle) and the former Gates
storage and salvage lot (William and
Wayne). The Crnllmission activities
involved with this property would include
acquisition, demolition. site prep and
marketin~~ for redevelopment.
Located on the Coveleski Park proposed
12
South Bend Redevelopment Commission
Regular Meeting-.lure 5, 2009
6. NEW BUSINESS (CONT.)
B. South Bend Central Development Area
(1) continued...
housing block, the acquisition of the Fred•s
Transmission properties would allow for
controlled infill development along William
and Taylor and allow for control of the
development on Western Avenue. The
Commission presently owns all but three
parcels on this block (excluding the three
parcels with this request). The Commission
activities involved with this property would
include acquisition, demolition, site prep and
marketing for redevelopment for both mixed
use and mixed scale residential development.
The twelve parcels located in the two square
block area between William, Western,
Lafayette and Wayne include the foi7ner
Gates Toyota Sales lot and sales building, the
cu17-ent Gates service center, the foi7iler
Schillin~~•s Camera store. and the Nor
systems~Inc, computer store. The purpose for
placing these properties on the acquisition
list at this time is twofold. First, the
Coveleski Park plan has identified these two
blocks for mixed use development and the
action to add the properties to the acquisition
list would be consistent with the plan.
Second, the vacation of the Gates Toyota use
from the site, coupled with the vacation of
the Sehillin~~"s building, would allow for a
large percentage of the area to be acquired in
the event that a large foi-~i1at user were to be
interested in an urban location. The only
other large format site (3.2 acres) is the
foi7ner Studebaker Museum block between
Lafayette and Main as compared to the 5.8
acre development site that could be
13
South Bend Redevelopment Commission
Re;.:ular Meeting -June 5, ?009
6. NEW BUSINESS (CONT.)
B. South Bend Central Development Area
(1) continued...
assembled in this proposed development
block.
Staff requests the Commission's direction to
develop the appropriate documentation to
begin the public process to add these 17
parcels to the acquisition list for the South
Bend Central Development Area. The
majority of the properties proposed for
addition to the acquisition list are properties
identified within the Coveleski Park plan and
the inclusion of The Manor parcels are
consistent with the larger redevelopment
goals for William Street of removing
buildings with inconsistent land uses. The
amendment is reasonable and appropriate
when considered in relation to the plan and
the purposes of the South Bend Central
Development Area, and the plan. with the
proposed amendment, conforms to the
comprehensive plan for the development
area.
Upon a motion by Mr. Varner. seconded by
Mr. King and unanimously can-ied, the
Commission authorized staff to begin the
process of adding properties in the South
Bend Central Development Area to the
Development Plan's Acquisition List.
(2) Amendment to Proposal for improvements
to Voorde Drive from the Bendix/Voorde
intersection improvement project to
Sheridan.
Mr. Inks asked that item 6.C(2) be
COMMISSION AUTHORIZED STAFF TO BEGIN THE
PROCESS OF ADDING PROPERTIES IN THE SOUTH
BEND CENTRAL DEVELOPMENT AREA TO THE
DEVELOPMENT PLANS ACQUISITION LIST
14
South Bend Redevelopment Commission
Regular Meeting -June 5, ?009
6. NEW BUSINESS (CONT.)
B. South Bend Central Development Area
(2) continued...
withdrawn.
Up011 a ITlotlon by Ml'. Val-nel', Seconded by COMMISSION WITHDREW ITEM 6.C(2).
Ms. King and unanimously carried, the
Commission withdrew item 6.C.(2).
(3) Purchase Agreement for Ziolkowski
properties.
Mr. Relos noted that on May 1 the
Redevelopment Commission approved a
purchase plan for the Ziolkowski properties
which set the purchase and relocation
amounts at a total value not to exceed
$1,810,800. The properties being purchased
include several properties in the block
bounded by Sample, Lafayette, Broadway
and Franklin. The acquisition will facilitate
the Transpo relocation to Ignition Park. The
purchase agreement covered all the
properties.
Todav ~~e're asking to split the purchase
agreement into two separate transactions, one
purchasing from Ziolkowski Properties LLC
and one from B & C Properties LLC, a real
estate holding company established by
Ziolkowski to hold the new property site, the
former PEI Genesis building on Bendix. The
total price for the property has not changed.
The purchase agreement with Ziolkowski
Properties pays X588,780 for everything
except the parcel at the southeast corner of
Franklin and Sample. The parcel at Franklin
and Sample will be transfei-~-ed to B & C
15
South Bend Redevelopment Commission
1Zegular Meeting -June 5, 2009
6. NEW BUSINESS (CONT.)
B. South Bend Central Development Area
(3) continued...
Properties to allow for a mechanism to
transfer the remainder of the land acquisition
and relocation funds directly to the relocation
and purchase of the PEI Genesis property.
The purchase agreement with B & C
Properties pays $2,000 for the parcel at the
southeast coi-~ier of Franklin and Sample and
the $320,020 previously directed to the site
land value will be added to the relocation
value of 5900,000. Staff requests approval of
this modification and the new purchase
agreements.
Upon a motion by Ms. King, seconded by
Mr. Varner and unanimously can-ied, the
Commission modified the terms of the
Purchase Agreement for the Ziolkowski
properties and approved a Purchase
Agreement with B R C Propel-ties LLC.
D. West V1'ashington-Chapin Development Area
There was no business in the West Washington-
Chapin Development Area.
E. South Side Development Area
There was no business in the South Side
Development Area.
F. Northeast Neighborhood Development Area
There was no business in the Northeast
Neighborhood Development Area.
COMMISSION MODIFIED THE TERMS OF THE
PURCHASE AGREEMENT FOR THE ZIOLKOWSIU
PROPERTIES AND APPROVED A PURCHASE
AGREEMENT WITH B c~ C PROPERTIES LLC
16
South Bend Redevelopment Commission
Regular Meeting -June 5, 2009
6. NEW BUSINESS (CONT.)
G. Douglas Road Economic Development Area
There was no business in the Douglas Road
Economic Development Area.
H. Ratification of Temporary Use Agreement
Ms. Jennings noted that Downtown South Bend
wishes to facilitate the use of vacant retail space in
Redevelopment owned property by downtown
businesses that don't have first floor space to
participate in the 1'~ Fridays events throughout the
summer and fall. Downtown South Bend will
manage the use of the space and which businesses
use which space.
Upon a motion by Mr. Varner, seconded by Ms.
King and unanimously calTied, the Commission
ratified the Temporary Use Agreement with
Downtown South Bend for 1'` Friday events in
2009.
Other
(1) Proposal from Cro~~'e Horvath to prepare
the City of South Bend Tax Increment
Financing Neutralization Worksheets.
Mr. Inks noted that Crowe Horvath has
submitted a proposal to prepare the City of
South Bend Tax Increment Financing
Neutralization Worksheets, including
collecting the necessary data, preparing the
worksheets for each TIF area and filing the
Y~-orksheets with the Auditor's office. The
total cost is not to exceed 520.000 for
professional fees and 52,500 for incidental
costs related to communication, printing,
travel expenses and other similar expenses.
CO~4MISSION RATIFIED THE TEMPORARI' USE
AGREEMENT WITH DOWNTOWN SOUTH BEND
FOR 1~~ FRIDAY' EVENTS IN 2009
17
South Bend Redevelopment Commission
Regular Meeting -June 5, ?009
6. NEW BUSINESS (CONT.)
I. Other
(1) continued...
These calculations are necessary every year
in which there is a reassessment of all
properties. Historically, these calculations
were only required once every ten years
when a general reassessment was done.
However, now these calculations are needed
every year, since every year all property
values are adjusted for market trending.
This calculation adjusts the base assessed
value for each TIF area to "neutralize-• the
effect of the reassessment. To achieve this
neutralization, the base assessed values are
adjusted to reflect growth in the county
versus the TIF area, and to achieve the
amount of tax revenue collected in the prior
near plus tax revenue due to new "real
~~rowth-' and tax abatement roll offs.
Mr. Inks noted that the Commission has used
Crowe for a number of years and find them
to be very reliable. Staff recommends
approving the proposal.
Mr. Vainer asked if the Department of Local
Government Finance has its own numbers
run and compares them to ours, or simply
accepts the numbers we provide. Mr. Inks
responded that he is not aware that the DLGF
contracts for a separate neutralization
accounting.
Ms. King suggested that if this is an annual
need, we should bid the work out every few
years. Mr. Inks agreed.
18
South Bend Redevelopment Crnnmission
Regular Meeting -.tune 5, 2009
6. NEW BUSINESS (CONT.)
I. Othe--
(1) continued...
Upon a motion by Ms. King, seconded by
Mr. Varner and unanimously carried, the
Commission approved the proposal fi-om
Crowe Horwath to prepare the City of South
Bend Tax Increment Financing
Neutralization Worksheets.
7. PROGRESS REPORTS
Ms. Laurent invited Commissioners to a tour of 101
North Michigan, the rehab of the American National
Bank building and construction of the adjacent
office/residential condo building to take place
immediately after today"s meeting.
8. NEXT COMMISSION MEETING
The next meeting of the Redevelopment Commission is
scheduled for Friday, Jw1e 19, ?009 at 10:00 a.m.
9. ADJOURNMENT
There being no further business to come before the
Redevelopment Commission, Ms. King made a motion
that the meeting be adjourned. Mr. Varner seconded the
motion and the meeting was adjourned at 10:50 a.m.
Donald E. Inks, Director
COMMISSION APPROVED THE PROPOSAL FRO(\4
CROWE NOR~~'ATH TO PREPARE THE CITY OF
SOUTH BEND TAX INCREMENT FINANCING
NEUTRALIZATION WORKSHEETS
PROGRESS REPORTS
NEXT COMMISSION MEETING
AD.IOURNMENT
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