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HomeMy WebLinkAbout10-23-09 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULED REGULAR MEETING October 23, 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 Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Ms. Stephanie Spivey Members Absent: Dr. David Varner, Vice President Legal Counsel: Mr. Charles S. Leone, Esq. Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Robert Mathia, Economic Development Specialist Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. David Relos, Economic Development Specialist Others Present: Mayor Stephen Luecke Mr. Tom Price, Mayor’s Office Mr. Jeff Gibney, Executive Director Comm & Econ Dev Ms. Geri Hathaway, Hathaway 2 Mr. Richard Nussbaum II Ms. Rita Kopala Ms. GlendaRae Hernandez Mr. Dale DeVon Mr. Jeff Vitton, Planner Ms. Amber Zebell, Prism Science Mr. Sean Dunaj Ms. Kerry Wallace 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, October 2, 2009. CM Upon a motion by Mr. Downes, seconded by Mr. OMMISSION APPROVED THE INUTES OF THE RMF,O2, EGULAR EETING OF RIDAY CTOBER Alford and unanimously carried, the Commission 2009 approved the Minutes of the Regular Meeting of Friday, October 2, 2009. South Bend Redevelopment Commission Rescheduled Regular Meeting –October 23, 2009 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted October 23, 2009 for approval. 305 FUND SBCDA BOND Indiana & Michigan Power Co 389.97 LaSalle Hotel Electric Gibson-Lewis, LLC 51,098.58 Island Park improvements Holladay Construction Group LLC 24,892.52 WNIT Façade Renovation The Troyer Group 6,785.85 WNIT Interiors 324 AIRPORT AEDA C&E Excavating INC 48,252.72 Demo Future Transpo Site - PH B R&R Excavating Inc 151,730.00 Demolition of Future Transpo Site Ph A TCU 686,000.00 Lease Termination & Settlement pymt Indiana Michigan Power 334.38 Electric 237 N Michgan / 420 S William Abonmarche 16,406.00 Mayflower Sanitary Sewer/US 31 & Adam Blue Waters Group 39,397.39 Professional Services Render Abonmarche 156.00 US 31/Adam Rd Interchange Studies Owners Association at Blackthorn 15,729.09 Landscape/Irrigation Maintenance R.E. McCloskey & Associates 1,500.00 New Hope Missionary Church 313 E Ohio SBD Reprographics 174.04 Prints / Binding Tri County News 60.10 Waste Management South Bend Tribune 90.72 Waste Management The Troyer Group 5,855.25 WNIT NIPSCO 1,868.22 Damage Vicinity 1319 S. Lafayette Meridian Title Corp 97,292.00 Acq of Manor 118S Williams South Bend Tribune 125.83 Blackthorn Spec 420 FUND TIF DISTRICT-SBCDA GENERAL Acorn Landscaping, LLC 1,670.00 Finish & Install Sign & Landscaping CB Richard 2,500.00 Marketing LaSalle Hotel DTSB 20,737.50 Beautification Program Streetscape Meridian Title 248,075.60 Purchase of 501 W Western The Troyer Group 2,610.00 George Rickey Kinetic Sculptures 454 FUND AIRPORT URBAN ENT. ZONE Project Impact 51,924.00 Job Training Services 619 BLACKTHORN GOLF COURSE OPERATIONS Meadowbrook Golf Group, Inc. 8,000.00 Management Fee $ 1,483,655.76 CC Upon a motion by Mr. Downes, seconded by Ms. King OMMISSION APPROVED THE LAIMS O23,2009, SUBMITTED CTOBER AND ORDERED and unanimously carried, the Commission approved the THE CHECKS TO BE RELEASED Claims submitted October 23, 2009, and ordered checks to be released. 2 South Bend Redevelopment Commission Rescheduled Regular Meeting –October 23, 2009 4. COMMUNICATIONS TC There were no Communications. HERE WERE NO OMMUNICATIONS 5. OLD BUSINESS TOB There was no Old Business. HERE WAS NO LD USINESS 6. NEW BUSINESS A. Tax Abatements (1) Resolution No. 2608 approving an application for real property tax deduction for property located at 1015 North Frances Street in the Northeast Neighborhood Development Area. (Peter and Nancy Kilpatrick) Mr. Mathia gave the staff report on the project. The Kilpatricks intend to construct an approximate 3,500 square foot, two-story, single-family home. It will have eight rooms and a finished basement. The project is part of the Notre Dame Avenue Housing Program. The cost of the home will be approximately $615,000. Total taxes to be abated during the five-year abatement period are estimated at $2,216. Total taxes to be paid during the five-year abatement period are estimated at $33,746. The property is properly zoned for the proposed use. The property is located in the Northeast Neighborhood Development Area, which is a Tax Incremental Allocation Area; therefore, approval of the tax abatement petition by the South Bend Redevelopment Commission is required. The property is not located within the Northeast Neighborhood’s residential TIF area. 3 South Bend Redevelopment Commission Rescheduled Regular Meeting –October 23, 2009 6. NEW BUSINESS (CONT.) A. Tax Abatement (1) continued… CRN.2608 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AN APPLICATION FOR REAL Mr. Alford and unanimously carried, the PROPERTY TAX DEDUCTION FOR PROPERTY Commission approved Resolution No. 2608 1015NFS LOCATED AT ORTH RANCES TREET IN approving an application for real property tax NN THE ORTHEAST EIGHBORHOOD deduction for property located at 1015 North DA.(PN EVELOPMENT REA ETER AND ANCY K) Frances Street in the Northeast ILPATRICK Neighborhood Development Area. (Peter and Nancy Kilpatrick) B. South Bend Central Development Area (1) Lease with Spark Design Studio, LLC (117-131 Michigan Street) Mr. Meteiver noted Spark Design took possession in September. They completed their renovation and are open for business. The term of the lease is three years, with two three-year options with rent increases in those additional years capped at $1.00 per option. The additional rent will be $11.26 per sft for the first year, including %5.26 for CAM. Rent is set to begin 90 days after taking possession (September). There will be a personal guarantee, signed by the owner, equal to the first year’s lease amount. He asked for the Commission’s approval pending legal review of the final version. Spark Design’s attorney has made his comments. The changes are not expected to be substantive, as there was not any objection to the terms in the Letter of Intent. CLS Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED THE EASE WITH PARK DS,LLC117-131M ESIGN TUDIO FOR ICHIGAN Ms. King and unanimously carried, the S, TREET SUBJECT TO FINAL LEGAL REVIEW Commission approved the Lease with Spark 4 South Bend Redevelopment Commission Rescheduled Regular Meeting –October 23, 2009 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued… Design Studio, LLC for 117-131 Michigan Street, subject to final legal review. C. Airport Economic Development Area (1) Resolution No. 2609 related to acquisition of property in the Airport Economic Development Area. (1508 S. Taylor) Mr. Relos noted that 1508 S. Taylor 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 clean and clear the southern boundary of Ignition Park, and to help stabilize the Rum Village neighborhood to the south. The Rum Village Neighborhood Association strongly supports the redevelopment of this area on the north side of Indiana Avenue. This particular property is a one story, two bedroom rental house owned by J&W Properties. The property owner would like to participate in the goals of the Commission in its efforts to clean and clear this area, and contacted staff with his interest in selling this property. Resolution No. 2609 sets the acquisition value of the property at $35,750 – this being the average value as determined by two independent appraisals. 5 South Bend Redevelopment Commission Rescheduled Regular Meeting –October 23, 2009 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued… CRN.2609 Upon a motion by Ms. King, seconded by OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Mr. Downes and unanimously carried, the AEDA. IRPORT CONOMIC EVELOPMENT REA Commission approved Resolution No. 2609 (1508S.T) AYLOR related to acquisition of property in the Airport Economic Development Area. (1508 S. Taylor) (2) Resolution No. 2610 approving and accepting a counter offer for the acquisition of property in the Airport Economic Development Area. (1508 S. Taylor) Mr. Relos noted that the owner of 1508 S. Taylor has submitted a counter offer in the amount of $41,000. This is the amount they paid for the property in 2002 (verified by staff). The owner feels with the improvements and upkeep to the property they have made over the years, that that would be a fair price. Staff recommends approval. In addition, staff requests approval to pay the current tenant $950 in relocation assistance. This amount was arrived at based on the Indiana residential fixed payment schedule, which offers a one time reimbursement to the tenant based on the number of rooms in the residence. CRN.2610 Upon a motion by Ms. King, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AND ACCEPTING A COUNTER OFFER Mr. Downes and unanimously carried, the FOR THE ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 2610 AEDA. IRPORT CONOMIC EVELOPMENT REA approving and accepting a counter offer for (1508S.T) AYLOR the acquisition of property in the Airport 6 South Bend Redevelopment Commission Rescheduled Regular Meeting –October 23, 2009 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) continued… Economic Development Area. (1508 S. Taylor) C Upon a motion by Ms. King, seconded by OMMISSION APPROVED TENTANT RELOCATION $950 ASSISTANCE IN THE AMOUNT OF FOR THE Mr. Downes and unanimously carried, the TENANT IN THE BUILDING Commission approved tenant relocation assistance in the amount of $950 for the tenant in the building. (3) Resolution No. 2611 related to acquisition of property in the Airport Economic Development Area. (1007 N. Bendix) Mr. Vitton noted that 1007 N. Bendix was added to the Airport Economic Development Area Acquisition List by Resolution No. 2450. The property was recently operated as a restaurant known as Fernando’s, but is currently vacant. The property is north of the entrance to the LaSalle Square shopping center, and is south of a vacant lot currently being used as the Urban Garden Market. The LaSalle Square Area redevelopment plan calls for the subject property and properties to the north of the site along Bendix to be redeveloped for commercial uses. Staff wishes to acquire it while it is vacant. Resolution No. 2611 sets the acquisition offering price at $137,000, the average of two independent appraisals. Staff recommends approval. Mr. Downes asked what the plan is for the property when acquired. Mr. Vitton 7 South Bend Redevelopment Commission Rescheduled Regular Meeting –October 23, 2009 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued… responded that the building would be demolished and the property included with others on that corner when made available for commercial redevelopment. Ms. Jones asked if there are other properties that we would like to acquire for the same commercial development. Mr. Gibney responded that there is one other. CR.2611 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION NO RELATED TO ACQUISITION OF PROPERTY IN THE Mr. Alford and unanimously carried, the AEDA. IRPORT CONOMIC EVELOPMENT REA Commission approved Resolution no. 2611 (1007N.B) ENDIX related to acquisition of property in the Airport Economic Development Area. (1007 N. Bendix) (4) Proposal for professional services in the Airport Economic Development Area. (Survey to update legal description) Mr. Schalliol noted that staff requested a proposal from The Abonmarche Group for the rewriting of the legal description for the Airport Economic Development Area. The proposal is in the amount of $4,400. When the Airport Economic Development Area was merged with the Sample-Ewing Development Area, the two legal descriptions were never independently verified. We believe there are a couple of errors that need to be corrected. Also, the current legal description includes about ten separate legal descriptions that added individual properties. We would like one complete, accurate legal description of the 8 South Bend Redevelopment Commission Rescheduled Regular Meeting –October 23, 2009 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (4) continued… area. Staff recommends approval. C Upon a motion by Mr. Downes, seconded by OMMISSION ACCEPTED THE PROPOSAL FROM TAG HE BONMARCHE ROUP TO PREPARE A NEW Ms. King and unanimously carried, the A LEGAL DESCRIPTION FOR THE IRPORT Commission accepted the proposal from The EDA CONOMIC EVELOPMENT REA AND THE FEE Abonmarche Group to prepare a new legal PROPOSED description for the Airport Economic Development Area and the fee proposed. (5) Agreement for Services with City of South Bend and Hathaway 2, Inc. Mr. Gibney noted that this Agreement covers services to prepare a Strategic Plan for Ignition Park development, including a business plan and roadmap for development, budgeting and investment for 2010 and 2011 by the City of South Bend in Ignition Park. The deliverables of this contract are a collective work by Geri Hathaway, the Mayor, Ann Kolata, Gary Gilot, David Brenner (Innovation Park), and Mr. Gibney, guaranteeing that all the necessary components for a practical roadmap for the development of the park is well understood and phased into action. Many of these tasks are short term, making them appropriate for a consulting arrangement. A full list of the services is included in Exhibit A to the Agreement. This is a 1 year agreement, ending 10/31/10. As we complete demolition of existing buildings in early 2011, it is necessary to know and be preparing to take the next steps. Some of these steps may have long lead 9 South Bend Redevelopment Commission Rescheduled Regular Meeting –October 23, 2009 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (5) continued… times. We want to avoid having demolition complete and be waiting several months or a year for any design, spec writing, bidding or RFP processes. If we can identify the next steps early then we can overlap lead time requirements with demolition. Once demolition is done, we can immediately proceed with development activities. Hathaway 2 has the experience and skills to lead this project and ensure completion of these services. The not-to-exceed $120,000 contract is all-inclusive, including travel and out-of-pocket expenses, as well as any consulting fees Hathaway 2 may sub-contract for, and $750 per month for rent of office space. The payment schedule for the contract is not to exceed $10,000 per month. Jim Eifert is expected to be the primary consultant to be hired by Hathaway 2. Mr. Gibney noted that after consultation with Mr. Leone of the city’s legal department, the contract will have some minor changes, mainly clarifications to the deliverables, so approval should be made subject to those changes. Mayor Luecke noted that we are all eager for things to take off in Ignition Park. We have always believed that good planning makes for good development. This contract will address who will manage Ignition Park, how the city should begin investing dollars effectively to assist in commercialization of ideas, etc. Ms. Hathaway’s office will be at 10 South Bend Redevelopment Commission Rescheduled Regular Meeting –October 23, 2009 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (5) continued… Innovation Park in order to keep close contact as companies are entering into and establishing their roots and moving out so that we’re able to grab them right away, and pick up on contacts that aren’t a fit for Innovation Park but might be for Ignition Park.. Ms. Hathaway noted that she has lived in South Bend since 1966. She thanked the Mayor and Mr. Gibney for the opportunity to work on this exciting project. She looks forward to working with city staff, Notre Dame, Innovation Park and Blue Waters Group to build a stable foundation for success. Ms. Jones asked Ms. Hathaway for periodic updates on her activities. Ms. Hathaway assured her she would provide that. Mr. Downes stressed the need to provide good communication with the community at large also. Mr. Price gave an update on progress in communication lately. There is an IgnitionPark.com website featuring downloadable links to all the print materials we’ve had available as hard copies, a fly- through video of the schematic of Ignition Park with a narration from the Mayor, a video of a driving tour with the Mayor through South Bend, highlighting recent development. We are in the final days of completing an e-mail newsletter focused on 11 South Bend Redevelopment Commission Rescheduled Regular Meeting –October 23, 2009 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (5) continued… economic and technology news in South Bend. It is expected out in the next week. The economic development portion of the city’s Web site has been updated also. Ms. King noted that the Ignition Park is not simply a funnel for companies that start in Innovation Park, but Ms. Hathaway will also be attempting to attract tech companies unrelated to Innovation Park. CA Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED THE GREEMENT FOR SH2,I. ERVICES WITH ATHAWAY NC AND THE Ms. King and unanimously carried, the CSB, ITY OF OUTH END SUBJECT TO FINAL LEGAL Commission approved the Agreement for REVIEW Services with Hathaway 2, Inc. and the City of South Bend, subject to final legal review. 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 (1) Proposal for professional services in the Douglas Road Development Area. (Sidewalk plan for Douglas Road) 12 South Bend Redevelopment Commission Rescheduled Regular Meeting –October 23, 2009 6. NEW BUSINESS (CONT.) G. Douglas Road Economic Development Area (1) continued… Mr. Schalliol noted that staff solicited a proposal from The Abonmarche Group to prepare specifications for sections of sidewalk along Douglas Road east of State Road 23. The city recently completed the construction of improvements on Douglas Road, including sidewalks, but there were several properties not within the city limits. We intend to provide design specifications to those property owners as they develop those properties, including sidewalks, so the sidewalks will be consistent with those already built. The proposal is in the amount of $1,900. Staff recommends approval. C Upon a motion by Mr. Downes, seconded by OMMISSION ACCEPTED THE PROPOSAL FROM TAG HE BONMARCHE ROUP TO PREPARE DESIGN Mr. Alford and unanimously carried, the SPECIFICATIONS FOR SIDEWALK IMPROVEMENTS Commission accepted the proposal from The DR ALONG OUGLAS OAD Abonmarche Group to prepare design specifications for sidewalk improvements along Douglas Road. H. Other (1) Ratification of Letter of Support signed by Marcia Jones for St. Joseph County Health Department grant application. CLS Upon a motion by Ms. King, seconded by OMMISSION RATIFIED THE ETTER OF UPPORT MJS.J SIGNED BY ARCIA ONES FOR T OSEPH Mr. Downes and unanimously carried, the CHD OUNTY EALTH EPARTMENT GRANT Commission ratified the Letter of Support APPLICATION signed by Marcia Jones for St. Joseph County Health Department grant application. 13 South Bend Redevelopment Commission Rescheduled Regular Meeting –October 23, 2009 6. NEW BUSINESS (CONT.) H. Other (2) Proposal for aerial photography (Multiple projects) Mr. Schalliol noted that staff solicited a proposal from AeroVision Photography to provide aerial photography of several of our project sites: Coveleski Park, Oliver Industrial Park, Ignition Park, Eddy Street Commons and the Douglas Road improvements. The cost of the photography is $1,000. Staff recommends accepting the proposal. C Upon a motion by Mr. Downes, seconded by OMMISSION ACCEPTED THE PROPOSAL FROM AV EROISION FOR AERIAL PHOTOGRAPHY OF THE Mr. Alford and unanimously carried, the DESIGNATED PROJECTS Commission accepted the proposal from AeroVision for aerial photography of the designated projects. I. Ratification of Contracts for Services Commission Role in Contract Staff Transaction Property Description Contractor Service Provided Amount Member 525 W Indiana Acquisition Witt Appraisals Appraisal $350 Relos 525 W Indiana Acquisition Michaels Appraisal $350 Relos Appraisals Upon a motion by Mr. Downes, seconded by Ms. Commission ratified the services King and unanimously carried, the Commission contracts approved by staff since ratified the services contracts approved by staff October 9, 2009 since October 9, 2009. 14 South Bend Redevelopment Commission Rescheduled Regular Meeting –October 23, 2009 7. PROGRESS REPORTS PR There was no report. ROGRESS EPORTS 8. NEXT COMMISSION MEETING NCM The next meeting of the Redevelopment Commission is EXT OMMISSION EETING scheduled for Friday, November 6, 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 10:33 a.m. 15