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Home My WebLink About2A 2016 0825 rdc minutesSouth Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 25, 2016 9: 3M m. Presiding: Marcia Jones, President The meeting was called to order at 9: 32m. 1. ROLL CALL 227 West Jefferson Boulevard South Bend, Indiana Members Present: Marcia Jones, President Dave Varner, Vice President Don Inks, Secretary Greg Downes, Commissioner Gavin Ferlic, Commissioner John Anella, Commissioner Legal Counsel: Benjamin Dougherty, Esq. Redevelopment Staff: David Relos, Associate Mary Brazinsky, Recording Secretary Others Present: Brian Pawlowski Aaron Kobb Beth Leonard Inks Sarah Heintzelman Andrew Berlin Erin Blasko Tony Knoble JB Curry Joe Hart Eric Foust Jim Priebe South Bend Redevelopment Commission Regular Meeting — August 25, 2016 Page 2 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, August 11, 2016 Upon a motion by Vice President Varner, seconded by Commissioner Downes, the motion carried 5 -0, the Commission approved the minutes of the regular meeting of Thursday, August 11, 2016. 3. APPROVAL OF CLAIMS 4. 5. A. Claims Submitted August 25, 2016 Claims submitted Redevelopment Commission Claims submitted August 25, 2016 for approval 324 RIVER WEST DEVELOPMENT AREA Plews Shad ley Racher& Braun RealNnerica IDEM United Consulting Engineers Jones Petrie Rafinski Jones Petrie Raflnski Tri County News 429 FUND RIVER EAST DEVELOPMENT TIF Walsh & Kelly Inc. 430 FUND SOUTH SIDE TIF AREA #1 Reith Riley Constriction Co. Inc., Basch/Honeywell 6,822.40 The LaSalle Apartments 731.25 Environmental 28,138.00 Coal Line Trail 270.00 Patel Plaza Marriott at HOF 8,548.25 EnvironmentalTesting Notice to Bidders Explanation of Project 225,505.00 East Bank Sewer Separation - PhaseV 805,585.17 South Bend One -way to Two -way Conversion Items added after Agenda Distributed 314.50 65.77 Total $1,134,600.07 $380.27 Upon a motion by Commissioner Downes, seconded by Secretary Inks, the motion carried 5 -0, the Commission approved the Claims submitted August 25, 2016. Old Business New Business A. River West Development Area (1) Third Amendment to Development Agreement (Former College Football Hall of Fame) Mr. Dougherty presented the Third Amendment to Development Agreement (Former College Football Hall Of Fame). In July of 2015 the original Development Agreement with Southold LLC, also known as JSK Hospitality was approved. This Third Amendment is to adjust the date at which time the responsibility of the maintenance, taxes, and insurance transfer to JSK. Rather than this August, it will align with the occupancy date of the hotel currently under construction (occupancy estimated September 2017). In exchange for the delay JSK will make a payment of $75,000 as part of the installment payment on the purchase price of the Hall of Fame. South Bend Redevelopment Commission Regular Meeting — August 25, 2016 Page 3 Upon a motion by Commissioner Downes, seconded by Vice President Varner the motion carried 5 -0, the Commission approved Third Amendment to the Development Agreement (Former College Football Hall of Fame) submitted August 25, 2016. (2) Request for Funding Increase (Chet Waggoner Drive) Mr. Relos presents a Request for Funding Increase (Chet Waggoner Drive). On June 30th the Commission approved $650,000 for this Drive that will open up 45 acres at Ameriplex. We are requesting supplemental funding of $150,000 to hire a third party for inspection services (due to all the city projects going on at this time), in addition to infrastructure work that was not scheduled until next year that could done this year. Upon a motion by Commissioner Downes, seconded by Secretary Inks the motion carried 5 -0, the Commission approved the Request for Funding Increase (Chet Waggoner Drive) submitted August 25, 2016. (3) First Amendment to Development Agreement (St. Joseph County Airport Authority) Mr. Dougherty presented First Amendment to Development Agreement (St. Joseph County Airport Authority). This amends the Development Agreement approved December 17, 2015. Under that Agreement certain property currently owned by the Airport is to be transferred to the Board of Public Works. This Amendment instead transfers the property to the Redevelopment Commission. Upon a motion by Secretary Inks, seconded by Commissioner Downes the motion carried 5 -0, the Commission approved the First Amendment to Development Agreement (St. Joseph County Airport Authority) submitted August 25, 2016. (4) Real Property Transfer Agreement (St. Joseph County Airport Authority) Mr. Pawlowski presented Real Property Transfer Agreement (St. Joseph County Airport Authority). This Transfer Agreement acknowledges the guidelines and restrictions mandated by the FFA, as well as the terms of the Airport property being transferred to the Commission. Annexation is expected to be approved late September /early October 2016. Upon a motion by Commissioner Downes, seconded by Commissioner Ferlic the motion carried 5 -0, the Commission approved Real Property Transfer Agreement (St. Joseph County Airport Authority) in the amount of $1 submitted August 25, 2016. South Bend Redevelopment Commission Regular Meeting — August 25, 2016 Page 4 (5) Real Estate Purchase Agreement (Bare Hands Brewery) Mr. Pawlowski presented Real Estate Purchase Agreement (Bare Hands Brewery). Bare Hands Brewery is expanding with the demand for their product not only in the Michiana area, but throughout the state and has approached the Commission for a new home to expand with distribution and new endeavors. The former Gates Service Center, located at 410 W. Wayne St., has been remediated and there are no other environmental concerns according to a Phase II completed by JPR. The property will be sold to Bare Hands for $1, and in exchange Bare Hands Brewery will invest $978,987 within five years. Jim Priebe spokesperson for Bare Hands talked about the company growth and distribution throughout Indiana. Bare Hands has won best beer in the state at Hop Camp in Indianapolis. The Granger facility is not large enough for production, whereas the new building is the perfect set -up to handle expansion and distribution. The Granger tap room will remain open. Once licensing and permits are completed in South Bend the facility can start bringing in equipment and working on product and future endeavors such as a restaurant. Upon a motion by Commissioner Ferlic, seconded by Commissioner Downes the motion carried 5 -0, the Commission approved Real Estate Purchase Agreement (Bare Hands Brewery) submitted August 25, 2016. (6) Resolution No. 3345 (Heading for Home LLC project agreements) Mr. Pawlowski presented Resolution No. 3345 which encompasses items 7, 8 and 9. This is a twenty -one million dollar investment, eighteen million by Andrew Berlin and his team, three point four million by the City. Annually the revenue generated is estimated to be two- hundred sixty- thousand dollars once built, which pays the City back in thirteen years. Mr. Pawlowski spoke about the promising future this project brings to the area, including jobs arising from the development, new residential units, commercial and dining establishments. This project will share the focus of South Bend being a destination location. Andrew Berlin bought the South Bend Cubs five years ago. He spoke about acquiring a spark to the City. This is a City ripe for population growth. Mr. Berlin conveyed his feelings about giving the fans a value of not only a ticket at a reasonable price but a whole experience for the family, date night, teenagers, whoever the fans may be for several hours. Mr. Berlin expressed the same feelings about the new mixed use complex of Berlin Place that will be apartments, retail and office space by building a first class experience at an affordable rate. Mr. Berlin stated that the architecture of the buildings inside and out will be something that will stand the test of time. Mr. Berlin spoke about the retail space possibly becoming a restaurant that also serves as a room service provider to all of the apartment complexes or a pharmacy /convenience store. The space would be something that would add value to not only the ballpark, but the entire neighborhood. South Bend Redevelopment Commission Regular Meeting — August 25, 2016 Page 4 Tony Knoble from TWG Development spoke about the partnership and excitement it brings with it to the City and this project. The Berlin Place project plans for an additional two hundred fifty parking spaces. The project is set to break ground late fall to deliver apartments April /May 2018. Upon a motion by Commissioner Ferlic, seconded by Commissioner Downes the motion carried 5 -0, the Commission approved Resolution No. 3345 submitted August 25, 2016. (7) Assignment and Assumption of Real Estate Option Agreement (Heading for Home LLC) Upon a motion by Commissioner Ferlic, seconded by Commissioner Downes the motion carried 5 -0, the Commission approved the Assignment and Assumption of Real Estate Option Agreement (Heading for Home LLC) submitted August 25, 2016. (8) Real Estate Purchase Agreement (Heading for Home LLC) Upon a motion by Commissioner Ferlic, seconded by Commissioner Downes the motion carried 5 -0, the Commission approved Real Estate Purchase Agreement (Heading for Home LLC) submitted August 25, 2016. (9) Development Agreement (Heading for Home LLC) Upon a motion by Commissioner Downes, seconded by Commissioner Ferlic the motion carried 5 -0, the Commission approved the Development Agreement (Heading for Home LLC) submitted August 11, 2016. B. River East Development Area (1) Development Agreement (River Walk L.L.C.) Mr. Pawlowski presented a Development Agreement for River Walk L.L.C. This piece extends the development footprint of the old Transpo site on Northside, as Michiana Brick had not previously been included in the space. This will expand into townhomes and additional single family housing units. We have agreed to facilitate the improvements, however, this is not an additional funding request as we already have dollars set aside for this project. We are asking Commission approval not to exceed $170,000. Upon a motion by Commissioner Ferlic, seconded by Commissioner Downes the motion carried 5 -0, the Commission approved the Development Agreement (River Walk L.L.C.) submitted August 25, 2016. South Bend Redevelopment Commission Regular Meeting — August 25, 2016 Page 5 (2) License Agreement for Parking (Colfax Hill Partners, LLC) Ms. Heintzelman presented a Temporary License Agreement for Parking with Colfax Hill Partners, LLC. Colfax Hill Partners LLC, is looking to lease parking spaces in the Commission owned lot at 126 Niles Ave. The lot has 14 available spaces, and Colfax Hill Partners is looking to provide parking for their new development at Colfax & Hill. The spaces will be leased at $25 dollars per month for a one year term. The Agreement has a 90 day clause that can be terminated at any time. Upon a motion by Commissioner Downes, seconded by Secretary Inks the motion carried 5 -0, the Commission approved the License Agreement for Parking (Colfax Hill Partners, LLC) submitted August 25, 2016. C. Other (1) Accounting Services Agreement for TIF Administration Services (H.J. Umbaugh & Associates) Mr. Relos presented Accounting Services Agreement for TIF Administration Services (H.J. Umbaugh & Associates). This is the annual TIF neutralization required by state statute annually. This is Umbaugh's third year. We request Commission approval at the same dollar amount as previous years of $12,500. Upon a motion by Secretary Inks, seconded by Commissioner Downes the motion carried 5 -0, the Commission approved Accounting Services Agreement for TIF Administration Services (H.J. Umbaugh & Associates) submitted August 25, 2016. South Bend Redevelopment Commission Regular Meeting — August 25, 2016 Page 6 6. Progress Reports A. Tax Abatement a. Confirming Resolution for AM General b. Declaratory Resolution for 3B Tech which is expanding and creating 100 jobs with an investment of $700,000; estimated timeline 2 years. B. Common Council None C. Other 7. Next Commission Meeting: Thursday, September 15, 2016, 9:30 a.m. 8. Adjournment Thursday, August 25, 2016, 10:01 a.m. Aar &n Kobb, Director of Economic Resources Marcia I. Jones, President