08-14-72 Council Special Meeting Minutes

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REGULAR MEETING AUGUST 14, 1972 RESOLUTION NO. 320 -72 (Continued) THEREFORE, BE IT RESOLVED that the Economic Development Commission of the City of South Bend, shall, as soon as the new lease form is properly prepared, submit the same to the clerk of the City of South Bend to be prepared by a member of the Common Council as a proposed ordinance for the acceptance of same and issuance of revenue bonds to cover the amount of money needed. m Mr. Karl G. King, Jr., President Economic Development Association 320 W. Jefferson Blvd. South Bend, Indiana 46601 Dear Karl: /s/ Peter J. Nemeth President of the Common Council Pursuant to our conversation, this letter states our intention to apply for financing assistance by means of the issuance of Industrial Revenue Bonds through the Economic Development Commission of the City of South Bend for our proposed purchase, remodeling and expansion of the property at 3300 West Sample Street, South Bend, Indiana. This property is presently owned by the Bendix Corporation and has been vacant for approxi- mately one year. We intend to move from our present location at 1012 S. High Street, which is inadequate and impractical to expand to accomodate our projected growth in sales, manufacturing and employment. Our company is currently leasing the High Street property with the lease expiring January 31, 1973. After thorough investigation of the possibilities of remodeling our High Street plant and finding excessive costs involved because of the mill type construction, low ceiling heights, lack of available land, and the inherent inefficiencies of manufacturing operations in multi -story buildings, we began, with the concurrence of our parent company, the Milton Bradley Company of Springfield, Mass. to actively seek other plant sites in the Middle West. The West Sample Street property seemed to have the best potential locally, however, extensive remodelling was found to be necessary to properly accommodate this property for our operations. Following is information which we understand is desired from us as a preliminary step in qualifying for the financing desired: 1. History of the Company: This Company was started in 1874 on the old Mill Race in South Bend by John W. Teel and Frederick H. Badet. The original products were croquet sets. Other action games joined the product line and toys soon followed. By 1888 the Company had been named the South Bend Toy Manufacturing Company and moved to its present location at 1012 S. High Street. In 1895 the Company produced the first willow doll carriages to be presented in the American market. Since that time South Bend has been the leading manufacturer of croquet sets and doll vehicles. Recent developments have been directed into the leisure time field and rapid growth has been experienced in the recreational and family-type game markets. Sales, which have doubled in the past seven years, have prospects of continuing to increase substantially in future years. II. Ownership Progression: Teel and Badet 1874 -1888 The South Bend Toy Manufacturing Company 1888 -1957 Fohrman and Dorgan 1957 -1958 Fohrman and Dorgan and Playskool Mfg. Co. 1958 -1959 Playskool Mfg. Co. 1959 -1968 Milton Bradley Co. 1968- III. From our investigations and projections to date we can state that: The buildings at 3300 West Sample Street exist in sound condition and to our knowledge there will be no conflict with the Area Plan Commission. The burden on the Fire and Police Departments, as a result of this move, will not change and there are no extensions of public sewer, water and roadway facilities required. We estimate that an additional 100 people from the currently unemployed local labor force will be needed in the near future to meet our increasing sales projections. IV. Analysis of Costs: 1. 1972 -1973 Purchase of existing property at 3300 W. Sample St. Remodelling of Plant and Offices Improve Ventilating System New Lumber Storage Bldg. and Dry Kilns New Gas Fired Boiler and Vastine System to Utilize Dust and Shavings - Non Polluting Roof Repair Repair R.R. Siding Relocation of Drainage Pond Fees and Misc. Items Moving Costs 2. 1974 Construction Finished Goods Warehouse - New Construction 150,000 sq. ft. Should there be any questions I]] or additional information required, Very truly yours, Louis R. Chreist, $750,000. 350.000. 40,000. 275,000. 75,000. 20,000. 5,000. 25,000. 45,000. 150,000. $1,735,000. $1,500,000. please get in touch with me. Jr. President I