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Home My WebLink About2. Minutes 10/2/09 MeetingSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING October 2, 2009 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Ms. Marcia Jones, President Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Ms. Stephanie Spivey Mr. Charles S. Leone, Esq. Mr. Lawrence Meteiver, Esg. Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. Robert Mathia, Economic Development Specialist Mr. David Relos, Economic Development Specialist Ms. Debrah Jennings, Property Manager Ms. Kathy Hahn, Loan Officer Others Present: Mr. Tom Price, Mayor's Office Mr. Jeff Parrott, South Bend Tribune Ms. Rita Kopala Ms. GlendaRae Hernandez Ms. Linda Wolfson, Community Forum for Economic Dev Ml-. Michael Hardy, Barnes & Thornburg Mr. Chad Douglass, Barnes & Thornburg Mr. Rick Reid, Blackthorn Golf Club Mr. John Quickstad, Blackthorn Golf Club Ms. Mo Miller Mr. Richard Nussbaum II Ms. Amber Zebell 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, September 18, 2009. Upon a 1110t10n by Mr. Varner, SeCOnded by MS. COMMISSION APPROVED THE MINUTES OF THE King and Unan11110US1y Carrled, the Conllnlsslon REGULAR MEETING OF FRIDAY, SEPTEMBER 18, 209 South Bend Redevelopment Commission Regular Meeting -0ctober 2, 2009 2. APPROVAL OF MINUTES (CONT.) A. continued... approved the Minutes of the Regular Meeting of Friday, September 18, 2009. 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted October 2, 2009 for approval. 305 FUND SBCDA BOND The Troyer Group 164.60 SB Downtown Streetscape Phase II 324 AIRPORT AEDA R.E. Pitts & Associates, Inc. Wightman Petrie Sopko, Nussbaum, Inabnit &Kaczmarek Indiana Michigan Power Michaels Appraisal Service Witt Appraisal Services, Inc R.E. Pitts & Associates, Inc. R.E. McCloskey & Associates, Inc. R.E. McCloskey & Associates, Inc. Blue Waters Group 420 FUND TIF DISTRICT-SBCDA GENERAL Koontz-Wagner Construction Services, LLC Ampco System Parking Indiana Michigan Power CB Richard Ellis Rose Pest Solutions Phifer Environmental Services, LLC Populous Group, LLC CB Richard Ellis 4,770.00 Appraisal, 412. E. Sample / 313 E. Ohio 7,252.50 Transpo relocation 2,013.75 Legal Service 7.00 501 Wenger St. 350.00 Appraisal Fee 350.00 Appraisal JW Properties LLC 2,385.00 Appraisal, 230 E. Sample St. 1,500.00 Appraisal, 230 E Sample St. 1,500.00 Appraisal, 412 East Sample St. 48,112.23 Ignition Park 1,937.78 Morris Performing Arts 1,809.41 St. Joseph St / 225 Main St. 71.00 237 N Michigan St. 896.30 LaSalle Hotel 93.00 LaSalle Hotel 1,400.00 Ph I Environmental Site Assessment 63,553.13 Stanley Coveleski Stadium 4,630.00 LaSalle Hotel Clean Up 422 TIF DISTRICT WEST WASHINGTON Sopko, Nussbaum, Inabnit &Kaczmarek 426 FUND SOUTH CENTRAL MEDICAL AREA Sopko, Nussbaum, Inabnit &Kaczmarek 225.00 Legal Services 618.75 Legal Services $ 143,639.45 2 South Bend Redevelopment Commission Regular Meeting -0ctober 2, 2009 3. APPROVAL OF CLAIMS (CONT.) Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved the Claims submitted October 2, 2009, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS A. Airport Economic Development Area (1) Lease Termination Agreement (SASCO) Mr. Inks noted that since the last meeting several things have occurred. 1. Commissioners may have misunderstood his response to a question about when they city last received a payment from SASCO. Mr. Inks responded to what he thought was a question about the Redevelopment Loan payments and said "not since 2001." Mr. Inks later heard that some Commissioners thought his response concerned the Lease. Accordingly, staff has supplied a listing of payments and dates to our Legal Dept. showing all payments due have been received. There is no payment default on the Lease. TCU has submitted a letter exercising the first 5 year renewal option. 3. TCU has info>7ned us they have a signed agreement for the sale of the Studebaker Parts Inventory and related assets. COMMISSION APPROVED THE CLAIMS SUBMITTED OCTOBER Z, 2009, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Regular Meeting -October 2, 2009 4. Our Agreement with TCU has been modified to more clearly explain the transaction as a Lease Termination and Settlement Agreement. Mr. Inks noted that the Commission could try to deny TCU the renewal option, but it is not clear whether we would prevail. Our Legal Department believes a settlement is appropriate. 5. The Agreement now includes the amount to be paid of $686,000. Mr. Inks noted that the Lease Termination and Settlement Agreement allow the Redevelopment Commission to achieve a number of goals. 1. The property at 410 W. Sample St. will be vacated by 2/15/10, allowing demolition to proceed on schedule and combined with Underground Pipe & Valve to achieve cost efficiencies. 2. This will keep Ignition Park on track to be available for new development in 2011. 3. The Studebaker Parts Inventory will be preserved and continue to be available for owners of Studebaker cars. 4. The Parts business will remain in South Bend, the home of Studebaker. The cost of this Settlement Agreement is $686,000. As noted above the Commission could contend TCU's right to renew the Lease, but the outcome is uncertain. If we did not prevail staff s conservative estimate of the Economic Value of the Current Lease is $965,680. In addition, the relocation costs could be $700,000 to $1,000,000. Tl1is Agreement achieves both ends for a 4 South Bend Redevelopment Commission Regular Meeting -October 2, 2009 significantly lower amount. Staff recommends favorable consideration by the Redevelopment Commission. Mr. Nussbaum noted that he felt the settlement was appropriate because it was reasonable in amount, and any litigation related to the right to renew the SASCO lease would be uncertain, costly and time consuming. This settlement allows the city to move forward with the Ignition Park project in a timely and cost effective fashion. At the same time it preserves a business which has historically been very important to our community. Mr. Varner questioned the unilateral nature of the right to renew and wanted to know if it was the Commission's policy to have renewals structured in that fashion. Mr. Nussbaum responded that the option to renew is subject to negotiation and either party's right to renew is dependent upon the facts and circumstances of each situation. Mr. Downes made a motion to approve the Lease Termination Agreement with SASCO. Ms. King seconded the motion. The motion carried on a vote of four to one with Mr. Varner opposed. 6. NEW BUSINESS A. Receipt of Bids (1) Receipt of Bids for Operation and Management of Blackthorn Golf Course Mr. Inks noted that seven bids were received prior to the 9:30 a.m., October 2, 2009 deadline: COMMISSION APPROVED THE LEASE TERMINATION AGREEMENT WITH SASCO South Bend Redevelopment Commission Regular Meeting -October 2, 2009 1. Kitson & Partners 2. SHS Management 3. Billy Casper Golf 4. Kemper Sports 5. Meadowbrook Golf 6. GolfVisions 7. Trademark Golf Upon a motion by Downes, seconded by Ms. King and unanimously carried, the Commission acknowledged receipt of the bids for Operation and Management of Blackthorn Golf Course and referred the bids to staff for review. A staff report and recommendation will be considered at the November 6 meeting. B. South Bend Central Development Area (1) Staff report on Century Center Island Landscaping. Ms. Inks noted that on July 24 the Commission approved ~ 100,000 for foundation void repairs to Island Park at Century Center. Originally, these had been estimated to cost about $200,000, but the city's Engineering Department thought they could be done for closer to $100,000. As it turned out the repairs came in at $112,895. However, another unforeseen repair was needed for the concrete seat wall cap. The cost of repairing the seat wall cap was 553,253. These additional costs, along with other minor changes, have resulted in a budget shortfall of X4,894 and a reduction in the landscape budget of $39,023. This had resulted in no plantings other than the trees, and the landscape beds having been mulched or sodded. In order to cover the budget shortfall of $4,894 and restore the landscape COMMISSION ACKNOWLEDGED RECEIPT OF THE BIDS FOR OPERATION AND MANAGEMENT OF BLACKTHORN GOLF COURSE AND REFERR>=D THE BIDS TO STAFF FOR REVIEW 6 South Bend Redevelopment Commission Regular Meeting -October 2, 2009 budget, the Commission is being asked to increase its funding for this project by $44,000. This would increase the pl•eviously approved $100,000 to $144,000. Staff recommends favorable consideration. Upon a ]IlOtlOn by Mr. Varnel•, SeCOnded by COMMISSION APPROVED THE ADDITIONAL MS. Kmg and UnanlmOUSly Carped, the $44,000 EXPENSE FOR REPAIRS TO CENTURY CollltnlsslOn apprOVed the add1t10na1 $44,000 CENTER ISLAND PARK. expense for repairs to Century Center Island Park.. (2) Proposal for Phase I Environmental Site Assessment (Southeast corner Main and Western) Mr. Schalliol noted that as part of the due diligence for preparing the Main and Western disposition parcel for disposition, a Phase I Environmental Site Assessment was performed on the parcel. It was discovered that for a period of time a Shell station was located on the southeast corner of the site on what is now a paved area being used for parking. It is not clear whether the gas station tanks were ever removed and so a Phase II Environmental Site Assessment was recommended to verify tank removal. Phifer Environmental Services has submitted a proposal to perfopn the site assessment for a cost of $7,275. Staff recommends accepting the proposal. Upon a nlOtlOn by MS. King, SCCOnded by COMMISSION ACCEPTED THE PROPOSAL FROM Mr. Downes and unanimously Carried, the PHIFER ENVIRONMENTAL SERVICES FOR THE CO1n1111SSlOn accepted the prOllOSal frOln SCOPE OF SERVICES AND FEE PROPOSED (SOUTHEAST CORNER MAIN AND WESTERN Phifer Environmental Services for the scope of services and fee proposed. (3) Resolution No. 2602 related to acquisition of property in the South Bend Central Development Area. (Fred's Shops LLC) South Bend Redevelopment Connnission Regular Meeting -0ctober 2, 2009 Mr. Schalliol noted that Resolutions No. 2602 and 2603 relate to property at 501 W. Western Avenue in the Coveleski Neighborhood Planning Area. This parcel was added to the South Bend Central Development Area acquisition list by Resolution No. 2595 on August 26, 2009. Resolution No. 2602 sets the acquisition value for the property at $204,000.00, the average of two qualified appraisals. This value is fora 24,394 SF (+/- .56 acres) lot with one 7,000 SF commercial structure. The parcel sits on the northwest corner of the intersection of Western and William and covers almost the entire southern end of the block area which is designated the Housing Block in the Coveleski Park planning efforts. With a purchase of the Fred's Transmission parcel, the Redevelopment Commission would own all but three parcels on this block. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2602 related to acquisition of property in the South Bend Central Development Area. (Fred's Shops LLC) (4) Resolution No. 2603 approving and accepting a counter offer for the acquisition of property in the South Bend Central Development Area (Fred's Shops LLC) Mr. Schalliol noted that a counter offer in the amount of Two Hundred and Fifty Thousand Dollars ($250,000.00), with an additional amount of Twelve Thousand Five Hundred Dollars ($12,500.00) for relocation has been submitted by Fred's Shops. After reviewing COMMISSION APPROVED RESOLUTION NO. 2602 RELATED TO ACQUISITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (FRED'S SHOPS LLC) South Bend Redevelopment Commission Regular Meeting -October 2, 2009 the appraisal information (high appraisal value at $240,000), the current tax assessment value ($247,500) and values paid in this area ($10.25/SF), staff believes the counter offer is reasonable and recommends accepting the counter offer. When acquired, the site will be cleared to facilitate new development in the Coveleski Park Planning Area. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. Resolution No. 2603 approving and accepting a counter offer for the acquisition of property in the South Bend Central Development Area (Fred's Shops LLC) (5) Resolution No. 2604 related to acquisition of property in the South Bend Central Development Area (The Manor, 118 S. Main) Mr. Schalliol noted that Resolution No. 2604 sets the acquisition offering price for 1 18 S. William at $118,500, the average of two qualified appraisals. The Manor sits on the east side of William Street in a block that has seen significant reinvestment over the last several years. With the relocation of the two story apartment building for use as the HLFI headquarters, the complete restoration of the two story apartment building on Franklin and the on-going restoration of the two multi- units on the south end of the block, the Manor building is no longer a consistent land use on the block. Due to constraints by Madison Center to remove this property from their books, the staff has worked out a purchase agreement with Madison Center to buy the Manor below COMMISSION APPROVED RESOLUTION N0. RESOLUTION NO.26O3 APPROVING AND ACCEPTING A COUNTER OFFER FOR THE ACQUISITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (FRED'S SHOPS LLC) 9 South Bend Redevelopment Conunission Regular Meeting-October 2, 2009 appraised value at $96,271. The price is fixed by a loan that is due on the property and due to non-compliance issues with the loan agreement, the loan needs to be paid in full. The proposed purchase price would pay the loan and relieve Madison Center of this debt issue. Since the proposed acquisition price is lower than the offering price, staff requests approval of the purchase agreement. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously cai->•ied, the Commission approved Resolution No. 2604 related to acquisition of property in the South Bend Central Development Area (The Manor, 118 S. Main) C. Airport Economic Development Area (1) Resolution No. 2605 related to acquisition of property in the Airport Economic Development Area. (412 E. Sample St) Mr. Relos noted that 412 E. Sample Street was added to the Airport Economic Development Area Acquisition List by Resolution No. ?596 on August 26, 2009. It was added in an effort to help Ivy Tech expand classroom, storage, and parking needs in light of their large increases in enrollment. There are four targeted properties along this section of east Sample Street. With the participation of the Commission, this section of Sample will be rehabilitated; it will allow Ivy Tech to create more classroom, parking, and storage space; and it will show community support for Ivy Tech, which will help it secure more state funding for future projects. The joint effort between the Commission and Ivy Tech is to have the COMMISSION APPROVED RESOLUTION NO. 2604 RELATED TO ACQUISITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (THE MANOR, 1 18 S. MAIN) 10 South Bend Redevelopment Commission Regular Meeting -October 2, 2009 Commission purchase and do certain demolition and facade work, with Ivy Tech doing interior work to make these properties classroom ready. 412 E. Sample is the Habitat for Humanity Restore, which has an 8,500 square foot building on approximately 1.32 acres of land. This building will be used by Ivy Tech to consolidate their apprenticeship programs, currently housed in two different locations. The relocation of the apprenticeship programs into this building then allows classrooms to be expanded into the space they cun•ently occupy. In addition, the western half of this lot will provide much needed parking for the expansion of classrooms in an adjacent building. Resolution No. 2605 sets the acquisition value of the property at $272,000, the average value as determined by two independent appraisals. Staff recommends approval of Resolution No. 2605, to allow an offer to be extended to the owner of this property for its eventual acquisition. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously can-ied, the Commission approved Resolution No. 2605 related to acquisition of property in the Airport Economic Development Area. (412 E. Sample St) (2) Blackthorn Golf Course capital improvements (Request for budget revisions) Mr. Inks noted that BGC has $26,000 remaining in its Capital Budget for 2009. COMMISSION APPROVED RESOLUTION NO. 2605 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (412 E. SAMPLE S7~ 11 South Bend Redevelopment Commission Regular Meeting -October 2, 2009 About $18,000 is the result of lower costs of completing capital projects, and $8,000 is due to a decision to defer one project until 2010. The $8,000 was allocated to in-house bunker renovations and which cannot proceed this year because of a lack of staff to dedicate towards this project while still maintaining the course to golfers' expectations and the lack of the proper equipment to do it. Blackthorn hopes to complete the bunker project using a contl•actor in 2011 if the funding is available. Blackthorn Golf Course wished to purchase a new rough mower to replace a worn out one, and to have new cart paths installed on holes seven and eight. The quote for a mower came in at $24,000, so there are not funds to purchase it and install the cart paths. Golf course staff has decided to purchase the mower and let the cart paths wait until 2010. Mr. Inks noted that none of the funds involved here are from TIF. Rather they are fi•om operating revenues generated by BGC. Since the Commission annually approved the golf course budget, it must approve this change. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the budget revisions to the Blackthorn Golf Course capital improvement budget. (3) Resolution No. 2606 related to acquisition of property in the Airport Economic Development Area. (Airgas, 912-1002 S. Lafayette) Mr. Relos noted that Airgas is a pressurized tank filling facility. The property was added COMMISSION APPROVED THE BUDGET REVISIONS TO THE BLACKTHORN GOLF COURSE CAPITAL IMPROVEMENT BUDGET 12 South Bend Redevelopment Commission Regular Meeting -October 2, 2009 to the Airport Economic Development Area Acquisition List by Resolution No. 2596 on August 26, 2009. This property was added to the acquisition list in an effort to clean and clear the fringe of Ignition Park for future development. It is located on the east side of Lafayette, just south of Sample Street. It sits next to and is across the street from the Hamilton Towing properties. Resolution 2606 sets the acquisition value of the property at $135,425, the average value as determined by two independent appraisals. Staff requests approval of Resolution 2606 and counter offer Resolution 2607 to allow for the acquisition of this property. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2606 related to acquisition of property in the Airport Economic Development Area. (Airgas, 912-1002 S. Lafayette) (4) Resolution No. 2607 approving and accepting a counter offer for the acquisition of property in the Airport Economic Development Area. (Airgas) Mr. Relos noted that Airgas has submitted a counter offer in the amount of $155,000. Because this land fits well into the future plans for this immediate area, staff feels this counter offer is reasonable for this property and recommends acceptance. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2607 approving and accepting a counter offer for the acquisition of property in the Airport COMMISSION APPROVED RESOLUTION NO. 2606 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (AIRGAS.9]2-1002 S. LAFAYETTE) COMMISSION APPROVED RESOLUTION NO. 2607 APPROVING AND ACCEPTING A COUNTER OFFER FOR THE ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (AIRGAS) 13 South Bend Redevelopment Commission Regular Meeting -October 2, 2009 Economic Development Area. (Airgas) D. West Washington-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. G. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. H. Other 7. PROGRESS REPORTS There were no Progress Reports. 8. NEXT COMMISSION MEETING PROGRESS REPORTS The next meeting of the Redevelopment Commission is NEXT coMMissioN MEETING scheduled for Friday, October 16, ?009 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, the meeting was adjourned at 10:35 a.m. 14 South Bend Redevelopment Commission Regular Meeting -0ctober 2, 2009 Donald E. Inks, Director 15