09-11-14 Redevelopment Commission Minutes

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South Bend Redevelopment Commission Regular Meeting—September 11,2014 • 6. NEW BUSINESS A. South Bend Central Development Area (1) continued.... Mr. Inks commented this project is a great addition to the ballpark and applauds the private investment and commitment to the community and supports the project 100%. Dr. Varner sees it as a deferred purchase plan for the City of South Bend because at the time the team leaves the City has a right of first refusal. He further asked whether there would be any land cost recouped by the Commission. Mr. Relos explained the property would be transferred at no cost. Dr. Varner is also concerned that the project, as initially proposed, was 11,000 sf for a$1M estimated cost. Now the square footage has increased to 17,700, but the cost estimate has not increased. His concern is that the City may eventually feel pressured to buy the facility at a price which is unknown at this time. Mr. Ford stated that the intent was that the facility would go with the Cove. So, if in the future someone else owns the team,they would be the entity most interested in the batting cages. But, if someone was trying to split this from the ballpark,the City would have the right of first refusal to stop that split. Dr. Varner clarified since this project is in a TIF district, the taxes generated stay within the TIF. Mr. Relos concurred,but noted that only applies to taxes on real estate. Equipment and other personal property taxes do not go into the TIF and instead accrue to the General Fund. Dr. Varner continues to be concerned the agreement will result in a future liability for the City although it is technically a right of first refusal. Upon motion by Mr. Inks, seconded by Ms. Schey, but opposed by Dr. Varner,the Commission approved the Memorandum of Understanding with Swing Batter Swing, LLC. B. Airport Economic Development Area (1) Resolution No. 3230 Approving and Authorizing the Execution of an Addendum to the Master Agency Agreement(Norres North America Equipment Purchase Project) Mr. Relos noted that on August 14, 2014,the Commission entered into an Economic Development Agreement and Equipment Lease with Norres, who agreed within the next 4 years to invest a minimum of$1,866,000 in new capital projects within the City and to create 25 new jobs. For its part,the Commission agreed to purchase and lease up to $200,000 in equipment. This addendum would allow the Board of Public Works to act as the Commission's agent in purchasing that equipment. Staff requests approval of the addendum to allow the project to move forward. • 4