07-24-14 Redevelopment Commission Minutes

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South Bend Redevelopment Commission Regular Meeting—July 24, 2014 6. NEW BUSINESS A. South Bend Central Development Area (1) Resolution No. 3224 approving and authorizing the execution of an Amendment to the Addendum to the Master agency Agreement (Hill & Colfax Drainage Improvement Project—Supplement#2) Mr. Kain noted that the Commission approved the initial Addendum to Agency Agreement for drainage work at the Hill & Colfax site on August 15, 2013. On January 30, 2014 the Commission amended the Addendum to the Agency Agreement approving a project budget for two aspects of the project: (1) site improvements to assist with the development of the mixed use project and street improvements that would benefit the entire neighborhood. Earlier this year the Board of Public Works bid out the on-site improvements portion of the project. Bids came in significantly higher than anticipated. The budget for the on-site improvements was $110,000. Since then staff has been working with the development team of Colfax Hill Partners to make the project work. Colfax Hill Partners have had some additional costs also in the pricing of their building. The site improvements portion of the project has been renegotiated. Staff is requesting additional resources for the project. The project is a$3,000,000 project. The additional resources retain the Commission commitment towards the project at less than 15% of the total development costs and ensure a payback in less than ten years. Staff requests approval of an additional $170,000 from the SBCDA TIF towards the Hill and Colfax site improvement portion of the project as well as the attached Resolution No. 3224. Mr. Downes asked for a more detailed description of the on-site improvements and off-site improvements. Mr. Kain responded that the on-site improvements that directly benefit the mixed use building include drainage and a parking lot. The second phase of on-site improvements were to do the sidewalk, concrete work, railings and retaining wall, landscaping, street furniture, etc. The off-site improvements were things like pavement markings similar to other Smart Streets projects. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3224 approving and authorizing the execution of an Amendment to the Addendum to the Master agency Agreement (Hill & Colfax Drainage Improvement Project— Supplement#2) (2) Amendment to Contract for Sale of Land for Private Development with Colfax Hill Partners, LLC. Mr. Kain noted that this Contract amends the original contract signed in December 2013 to reflect the additional site improvements noted above to make the project work, including sidewalks, concrete steps, retaining wall, etc. The developers have also changed the site plan to make the project more feasible. The building footprint will remain the same, but they have reduced the amount of commercial space and increased the amount of residential from thirteen to sixteen units. That reduces the developer's risk in terms of project financing. We 3