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Home My WebLink About10-02-09 Redevelopment Commission Minutes SOUTH 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: Ms. Marcia Jones, President Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Members Absent: Ms. Stephanie Spivey Legal Counsel: Mr. Charles S. Leone, Esq. Mr. Lawrence Meteiver, Esq. 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 Mr. 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. CM Upon a motion by Mr. Varner, seconded by Ms. OMMISSION APPROVED THE INUTES OF THE RMF, EGULAR EETING OF RIDAY King and unanimously carried, the Commission S 18,2009 EPTEMBER South Bend Redevelopment Commission Regular Meeting –October 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. 4,770.00 Appraisal, 412. E. Sample / 313 E. Ohio Wightman Petrie 7,252.50 Transpo relocation Sopko, Nussbaum, Inabnit & Kaczmarek 2,013.75 Legal Service Indiana Michigan Power 7.00 501 Wenger St. Michaels Appraisal Service 350.00 Appraisal Fee Witt Appraisal Services, Inc 350.00 Appraisal JW Properties LLC R.E. Pitts & Associates, Inc. 2,385.00 Appraisal, 230 E. Sample St. R.E. McCloskey & Associates, Inc. 1,500.00 Appraisal, 230 E Sample St. R.E. McCloskey & Associates, Inc. 1,500.00 Appraisal, 412 East Sample St. Blue Waters Group 48,112.23 Ignition Park 420 FUND TIF DISTRICT-SBCDA GENERAL Koontz-Wagner Construction Services, LLC 1,937.78 Morris Performing Arts Ampco System Parking 1,809.41 St. Joseph St / 225 Main St. Indiana Michigan Power 71.00 237 N Michigan St. CB Richard Ellis 896.30 LaSalle Hotel Rose Pest Solutions 93.00 LaSalle Hotel Phifer Environmental Services, LLC 1,400.00 Ph I Environmental Site Assessment Populous Group, LLC 63,553.13 Stanley Coveleski Stadium CB Richard Ellis 4,630.00 LaSalle Hotel Clean Up 422 TIF DISTRICT WEST WASHINGTON Sopko, Nussbaum, Inabnit & Kaczmarek 225.00 Legal Services 426 FUND SOUTH CENTRAL MEDICAL AREA Sopko, Nussbaum, Inabnit & Kaczmarek Legal Services 618.75 $ 143,639.45 2 South Bend Redevelopment Commission Regular Meeting –October 2, 2009 3. APPROVAL OF CLAIMS (CONT.) CC Upon a motion by Mr. Downes, seconded by Mr. Alford OMMISSION APPROVED THE LAIMS O2,2009, SUBMITTED CTOBER AND ORDERED and unanimously carried, the Commission approved the THE CHECKS TO BE RELEASED Claims submitted October 2, 2009, and ordered checks to be released. 4. COMMUNICATIONS TC There were no Communications. HERE WERE NO OMMUNICATIONS 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. 2. TCU has submitted a letter exercising the first 5 year renewal option. 3. TCU has informed us they have a signed agreement for the sale of the Studebaker Parts Inventory and related assets. 4. Our Agreement with TCU has been 3 South Bend Redevelopment Commission Regular Meeting –October 2, 2009 5. OLD BUSINESS (CONT.) A. Airport Economic Development Area (1) continued… 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 4 South Bend Redevelopment Commission Regular Meeting –October 2, 2009 5. OLD BUSINESS (CONT.) A. Airport Economic Development Area (1) continued… 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. This Agreement achieves both ends for a 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. CL Mr. Downes made a motion to approve the Lease OMMISSION APPROVED THE EASE TASASCO ERMINATION GREEMENT WITH Termination Agreement with SASCO. Ms. King seconded the motion. The motion carried on a vote of four to one with Mr. Varner opposed. 5 South Bend Redevelopment Commission Regular Meeting –October 2, 2009 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: 1. Kitson & Partners 2. SHS Management 3. Billy Casper Golf 4. Kemper Sports 5. Meadowbrook Golf 6. GolfVisions 7. Trademark Golf C Upon a motion by Downes, seconded by Ms. OMMISSION ACKNOWLEDGED RECEIPT OF THE OM BIDS FOR PERATION AND ANAGEMENT OF King and unanimously carried, the BGC LACKTHORN OLF OURSE AND REFERRED Commission acknowledged receipt of the THE BIDS TO STAFF FOR REVIEW 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 6 South Bend Redevelopment Commission Regular Meeting –October 2, 2009 6. NEWOLD BUSINESS (CONT.) B. South Bend Central Development Area (1) continued… needed for the concrete seat wall cap. The cost of repairing the seat wall cap was $53,253. These additional costs, along with other minor changes, have resulted in a budget shortfall of $4,894 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 budget, the Commission is being asked to increase its funding for this project by $44,000. This would increase the previously approved $100,000 to $144,000. Staff recommends favorable consideration. C Upon a motion by Mr. Varner, seconded by OMMISSION APPROVED THE ADDITIONAL $44,000C EXPENSE FOR REPAIRS TO ENTURY Ms. King and unanimously carried, the CIP. ENTER SLAND ARK Commission approved the additional $44,000 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 7 South Bend Redevelopment Commission Regular Meeting –October 2, 2009 6. NEWOLD BUSINESS (CONT.) B. South Bend Central Development Area (2) continued… Phase II Environmental Site Assessment was recommended to verify tank removal. Phifer Environmental Services has submitted a proposal to perform the site assessment for a cost of $7,275. Staff recommends accepting the proposal. C Upon a motion by Ms. King, seconded by OMMISSION ACCEPTED THE PROPOSAL FROM PES HIFER NVIRONMENTAL ERVICES FOR THE Mr. Downes and unanimously carried, the SCOPE OF SERVICES AND FEE PROPOSED Commission accepted the proposal from (STMW) OUTHEAS CORNER AIN AND ESTERN 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) 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 for a 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 8 South Bend Redevelopment Commission Regular Meeting –October 2, 2009 6. NEWOLD BUSINESS (CONT.) B. South Bend Central Development Area (3) continued… parcel, the Redevelopment Commission would own all but three parcels on this block. CRN.2602 Upon a motion by Mr. Varner, seconded by OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Mr. Downes and unanimously carried, the SBCDA. OUTH END ENTRAL EVELOPMENT REA Commission approved Resolution No. 2602 (F’SLLC) REDS HOPS 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 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. CRN. Upon a motion by Mr. Varner, seconded by OMMISSION APPROVED ESOLUTION O RN.2603 ESOLUTION O APPROVING AND Mr. Downes and unanimously carried, the ACCEPTING A COUNTER OFFER FOR THE Commission approved Resolution No. SB ACQUISITION OF PROPERTY IN THE OUTH END Resolution No. 2603 approving and CDA(F’S ENTRAL EVELOPMENT REA REDS HOPS accepting a counter offer for the acquisition LLC) 9 South Bend Redevelopment Commission Regular Meeting –October 2, 2009 6. NEWOLD BUSINESS (CONT.) B. South Bend Central Development Area (4) continued… 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 118 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 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. 10 South Bend Redevelopment Commission Regular Meeting –October 2, 2009 6. NEWOLD BUSINESS (CONT.) B. South Bend Central Development Area (5) continued… CRN.2604 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Mr. Varner and unanimously carried, the SBCDA OUTH END ENTRAL EVELOPMENT REA Commission approved Resolution No. 2604 (TM,118S.M) HE ANOR AIN 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. 2596 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 purchase and do certain demolition and façade work, with Ivy Tech doing interior work to make these properties classroom ready. 11 South Bend Redevelopment Commission Regular Meeting –October 2, 2009 6. NEWOLD BUSINESS (CONT.) C. Airport Economic Development Area (1) continued… 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 currently 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. CRN.2605 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Ms. King and unanimously carried, the AEDA.(412 IRPORT CONOMIC EVELOPMENT REA Commission approved Resolution No. 2605 E.SS) AMPLE T 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 12 South Bend Redevelopment Commission Regular Meeting –October 2, 2009 6. NEWOLD BUSINESS (CONT.) C. Airport Economic Development Area (2) continued… remaining in its Capital Budget for 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 contractor 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 from operating revenues generated by BGC. Since the Commission annually approved the golf course budget, it must approve this change. C Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED THE BUDGET REVISIONS BGC TO THE LACKTHORN OLF OURSE CAPITAL Mr. Varner and unanimously carried, the IMPROVEMENT BUDGET Commission approved the budget revisions to the Blackthorn Golf Course capital improvement budget. 13 South Bend Redevelopment Commission Regular Meeting –October 2, 2009 6. NEWOLD BUSINESS (CONT.) C. Airport Economic Development Area (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 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. CRN.2606 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Mr. Alford and unanimously carried, the AEDA. IRPORT CONOMIC EVELOPMENT REA Commission approved Resolution No. 2606 (A,912-1002S.L) IRGAS AFAYETTE 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 14 South Bend Redevelopment Commission Regular Meeting –October 2, 2009 6. NEWOLD BUSINESS (CONT.) C. Airport Economic Development Area (4) continued… 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. CRN.2607 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AND ACCEPTING A COUNTER OFFER Mr. Alford and unanimously carried, the FOR THE ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 2607 AEDA. IRPORT CONOMIC EVELOPMENT REA approving and accepting a counter offer for (A) IRGAS the acquisition of property in the Airport 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 15 South Bend Redevelopment Commission Regular Meeting –October 2, 2009 7. PROGRESS REPORTS PR There were no Progress Reports. ROGRESS EPORTS 8. NEXT COMMISSION MEETING NCM The next meeting of the Redevelopment Commission is EXT OMMISSION EETING scheduled for Friday, October 16, 2009 at 10:00 a.m. 9. ADJOURNMENT A There being no further business to come before the DJOURNMENT Redevelopment Commission, the meeting was adjourned at 10:35 a.m. 16