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Home My WebLink About2. Minutes 11/6/09 MeetingSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING November 6, 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 Members Absent: Mr. Donald Alford 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 Others Present: 2. APPROVAL OF MINUTES Mr. Tonl Price. Mayor's Office Mr. Jeff Parrott, South Bend Tribune Ms. Rita Kopala Ms. Laura Seng, Barnes & Thornburg Ms. Mo Miller, Charles Hayes Communications Ms. Jamie Ruiz, CB Richard Ellis A. Approval of Minutes of the Rescheduled Regular Meeting of Friday, October 23, 2009. Upon a IllOtlOn by Mr. DOwneS, SeCOnded by MS. COMMISSION APPROVED THE MINUTES OF THE King alld Unan1I110US1y Cal'I'led, the Colnnllsslon RESCHEDULED REGULAR MEETING OF approved the Minutes of the Rescheduled Regular FRIDAY. OCTOBER 23, ?009 Meeting of Friday, October 23, 2009. South Bend Redevelopment Commission Regular Meeting -November 6, 2009 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted November 6, 2009 for approval. 305 FUND SBCDA BOND Rieth Riley Construction Holladay Corp Gibson-Lewis, LLC 101 North Michigan 174,796.68 Streetscape 63,473.91 WNIT Fapade renovation 80,705.76 Century Center Island Park Renovation 324 AIRPORT AEDA South Bend Water Works DNA Blue Waters Group Rhein Bach, Inc. South Bend W ater W orks AMPCO System Parking SBHF Indiana Michigan Power DLZ Suevenna Thompson Sopko Nussbaum,lnabnit &Kaczmarek Witt Appraisal Services, Inc Selge Construction 420 FUND TIF DISTRICT-SBCDA GENERAL Rose Pest Solutions AT&T Indiana Michigan Power CB Richard Ellis LL Geans Construction Co. Fund 314 -Redevelopment Debt Service All Phase Electric supply Michigna Lock & Key Precision Wall System Populous(HOK) Sports Aerovision Danch,Harner & Assoc 426 FUND SOUTH CENTRAL MEDICAL AREA Sopko Nussbaum,lnabnit &Kaczmarek 57.51 770.00 10,198.56 400.00 168.62 2,066.03 40.00 364.64 42,016.25 950.00 5,096.25 350.00 88,057.24 93.00 30.87 7.00 1,257.97 2,610.00 2,500.00 107.12 10.95 289.00 29,802.95 1,000.00 670.00 495.00 430 FUND SOUTHSIDE DEVELOPMENT TIF AREA# 1 Christopher B Burke 11,269.18 $ 344,857.81 Sprinkler Engineering Designer Bendix Phys Office Sprinkler 1000 Fellows St. Joseph St. /Main Parking SBHF Fee Electric Bills Relocation Allowance Main & Western Streetscape. LaSalle Hotel Pest Control 237 N Michigan Sprinkler 501 Wenger St. LaSalle Hotel George Rickey Exhibit LaSalle Hotel LaSalle Hotel LaSalle Hotel Coveleski Improvements Aerial Photography of projects Erskine Retention ponds 2 South Bend Redevelopment Commission Regular Meeting -November 6, 2009 3. APPROVAL OF CLAIMS (CONT.) Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved the Claims submitted November 6, 2009, and ordered checks to he released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS A. South Bend Central Development Area (1) Certificate of Completion for Madison Center. Mr. Mathia noted that on November 7, 2003, the Redevelopment Commission signed a Contract for Sale of Land with the Madison Center for three parcels of land known as the Crescent Street Properties located between Niles and Hill Streets. As part of the contract, Madison Center provided a performance guarantee equivalent to 10% of the purchase price of 5480,000. Transfer of the Properties was intended to facilitate completion of an expansion plan to increase the scope and quality of the services Madison Center provides. Plans for the properties called for construction of: (a) a multi purpose building to house employee training facilities, outpatient service facilities, other clinical facilities and possibly retail space on the first floor; and (b) a group home to house eight to sixteen patients. Madison Center's attorneys have submitted a letter describing the improvements made on the Madison campus, including the Crescent COMMISSION APPROVED THE CLAIMS SUBMITTED NOVEMBER 6, 2009, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Regular Meeting -November 6, 2009 5. OLD BUSINESS A. South Bend Central Development Area (1) continued... Properties, and requesting issuance of a Certificate of Completion and return of the performance guarantee. The letter states the Center consh•ucted a children's facility on the Crescent Properties. However, the plans for another building, the Geropsychology Institute, located along Niles Avenue north of the Crescent Properties, were enlarged to house retail space, training areas and patient areas originally planned for• the children's facility. The gi°oup home was moved from the Crescent Properties to the corner of Turnock Street and South Bend Avenue with the collaboration of officials from the Northeast Neighborhood Revitalization Organization (NNRO) and the City. That group home accommodates eight patients. Additional facilities completed as part of the expansion plan included the Sunshine Club, an ADHD clinic and renovation of the Providence House. The total expansion plan cost $4 x,000,000 and resulted in the addition of five new facilities and the launch of new and expanded programs to service clients. Mr. Mathia noted that the $480.000 Madison Center paid for the Crescent Properties exceeded the lower of the two appraisals completed by MAI appraisers for the Commission at the time of sale (5473,000 and $570,000). That price also exceeded the estimated 5450,000 investment the Commission had made in the properties. While not all of the facilities planned for the Crescent Properties were built there, they 4 South Bend Redevelopment Commission Regular Meeting -November 6, 2009 5. OLD BUSINESS A. South Bend Central Development Area (1) continued... were constructed elsewhere by Madison Center; therefore, the organization has met the spirit and intent of the plans in the Gonh•act for Sale. Staff recommends that the Redevelopment Commission issue the Certificate of Completion and authorize repayment of the Performance Guarantee in the amount of $48,000. Ms. Jones asked which of the three original parcels on Crescent Street have buildings on them and which are still vacant. Ms. Seng responded that the Center for Children was built on the parcel at the corner of Crescent and Niles. The two smaller parcels front on Crescent and are used as greenspace for the programming offered by the Center for Children. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Certificate of Completion for Madison Center. 6. NEW BUSINESS A. Housing (1) Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 2238 Beverly Place. (Diane C. Curneal) COMMISSION APPROVED THE CERTIFICATE OF COMPLETION FOR MADISON CENTER Mr. Inks noted that the loan is in the amount of $6,600. The grant is 56,399.25. South Bend Redevelopment Commission Regular Meeting -November 6, 2009 6. NEW BUSINESS (CONT.) A. Housing (1) continued... Mr. Varner asked if the source of funds for these loans and grants is federal money. Mr. Inks responded that it is. Ms. King asked staff to provide infornlation at a future meeting about the criteria for the program. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved the Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 2238 Beverly Place. (Diane C. Cutneal) (2) Loan and Grant in connection with the South Bend Home Improvement Loan Program for propert~~ located at 1914 S. Catalpa Avenue. (Margaret Dudeck) Mr. Inks noted that the loan is in the amount of $3,450. The grant is S 17.000. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved the Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 1914 S. Catalpa Avenue. (Margaret Dudeck) (3) Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 1624 Southeast Drive. (Michael Malinowski) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT ~~3c4 BEVERLY PLACE. (DIANE C. CORNEAL) CO~9MISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY' LOCATED AT 1914 S. CATALPA AVENUE. (MARGARET DUDECK) 6 South Bend Redevelopment Commission Regular Meeting -November 6, 2009 6. NEW BUSINESS (CONT.) A. Housing (3) continued... Mr. Inks noted that the loan is in the amount of $4,750. The grant is $4603.50. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved the Loan and Grant in connection with the South Bend Home hmprovement Loan Program for property located at } 624 Southeast Drive. (Michael Malinowski) (4) Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 822 S. 26~I' Street. (Jean A. Troeger) Mr. Inks noted that the loan is in the amount of 54,050. The gn-ant is 53,913.25. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved the Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 822 S. 26`I' Street. (Jean A. Troeger) B. South Bend Central Development Area (1) Filing of Resolution No. 2614 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2009 and ending December 31, 2009, including all outstanding claims and obligations, fixing COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH TI1E SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY' LOCATED AT ~ fi~4 SOUTHEAST DRIVE. (MICHAEL MALINOWSKI) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT ~~~ $. 2fi~~~ STREET. (JEAN A. TROEGER) 7 South Bend Redevelopment Commission Regular Meeting -November 6, 2009 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... a time when the same shall take effect and setting a public hearing on Resolution No. 2614 for 10:00 a.m., December 4, 2009. (Building Operations Budget Fund 425, Leighton Plaza Retail, Leighton Plaza Courtyard, Wayne Street Garage Retail) Mr. Inks noted that the need for budget revisions was caused by receipt of a bill for $28,000 in back taxes on one of our retail properties. Staff needed to make that payment, and did so, but the budget appropriation needs to take place to cover it. Mr. Inks said the explanation of how that situation occurred and the steps being taken to prevent it occun•ing again will be made at the time of the public hearing on December 4. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously calTied, the Commission accepted for filing Resolution No. 2614 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2009 and ending December 31, 2009, including all outstanding claims and obligations, fixing a time when the same shall take effect and setting a public hearing on Resolution No. 2614 for 10:00 a.m., December 4, 2009. (Building Operations Budget Fund 425, Leighton Plaza Retail, Leighton Plaza Courtyard, Wayne Street Garage Retail) COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 2614 APPROPRIATING MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC' IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2009 AND ENDING DECEMBER 31, 2009, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT AND SETTING A PUBLIC HEARING ON RESOLUTION NO.2h14 FOR 10:00 A.M., DECEMBER 4, 2009. (BUILDING OPERATIONS BUDGET FUND 475, LEIGHTON PLAZA RETAIL, LEIGHTON PLAZA COURTYARD, WAYNE STREET GARAGE RETAIL) South Bend Redevelopment Commission Regular Meeting -November 6, 2009 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) Resolution No. 2612 related to acquisition of property in the Airport Economic Development Area (525 W. Indiana Ave.) Mr. Relos noted that 525 W. Indiana Avenue 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 1,250 square foot, two story, four bedroom house. It has a two car detached garage, full basement, and is on an extra deep lot with a fenced in back yard. It is owned by Jean Winten•owd. Resolution No. 2612 sets the acquisition value of the property at $6,600, which is the average value as determined by two independent appraisals. Ms. Jones asked what our intent is for the property. Mr. Relos responded that staff intends to demolish it. Ms. Jones inquired about the whether the home owner has found another place to live with that relatively small amount of money. Mr. Relos responded that she is an older woman who already rotates between her home and living with nearby children. He believes she will simply move in with one of her children. 9 South Bend Redevelopment Commission Regular Meeting -November 6, 2009 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... Upon a motion by Ms. King, seconded by Mr. Downes and unanimously can-ied, the Commission approved Resolution No. 2612 related to acquisition of property in the Airport Economic Development Area (525 W. Indiana Ave.) (2) Resolution No. 2613 approving and accepting a counter offer for the acquisition of property in the Airport Economic Development Area (525 W. Indiana Ave.) Mr. Relos noted that Ms. Winten•owd made a counter offer in the amount of S 15,000. She feels this price is a more accurate value of the property. The assessed value of this home is $30,200. Though the house needs some work, it is habitable and in stable condition. The counter offer foregoes relocation assistance. Staff recommends approval of Resolution No. 2613. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously can-ied, the Commission approved Resolution No. 2613 approving and accepting a counter offer for the acquisition of property in the Airport Economic Development Area (525 W. Indiana Ave.) (3) Engagement Letter from McGuire, Craddock & Strother, P.C. to serve a local counsel in connection with the former COMMISSION APPROVED RESOLUTION NO. 2612 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (525 W. INDIANA AVE. COMMISSION APPROVED RESOLUTION NO. 2613 APPROVING AND ACCEPTING A COUNTER OFFER FOR THE ACQUISITION OF PROPERTI' IN THE AIRPORT ECONOMIC' DEVELOPMENT AREA (525 W. INDIANA AVE.) 10 South Bend Redevelopment Conm~ission Regular Meeting -November 6, 2009 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued... Oliver Plow Works property and South Bend's efforts to reach a settlement with TIC United for environmental conditions at that property. Mr. Leone noted that this item is related to the Commission's pursuit of claims under some historic insw-ance policies related to the Studebaker Oliver site. We're working with Plews Shadley in Indianapolis to pursue those claims. As part of that process, even though we are dealing directly with the insurance companies, we had to file claims in a bankruptcy case which is pending in Houston, Texas. Our filing of that claim has triggered a response to gather some more information fi-om us. So, we need to have someone in Houston to do this for us. It should be minimal work. Local counsel was recommended by Plews Shadley for this purpose. Mr. Varner asked if there was a cap on this expenditure. Mr. Leone responded that there is not a cap. He is confident that very little time will be required and Plews Shadley will oversee the direction of local counsel. Mr. Varner noted that McGuire, Craddock & Strother's letter left the door open for intervening as necessary. He wondered just how far this could go. Mr. Leone responded that local counsel always operates under the direction of main counsel, in this case Plews Shadley. Mr. Leone and Ms. Kolata speak with Plews Shadley on a regular basis. Mr. South Bend Redevelopment Commission Regular Meeting -November 6, 2009 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued... Leone feels fairly comfortable that it is not an open-ended commitment with respect to the engagement of McGuire, Craddock & Strother. Mr. Downes asked what our expectation was of a settlement amount. Mr. Leone noted that the case against historic insurance policies was a case that made it to the Indiana Supreme Court about a year ago. It established our right to collect under some of these historic policies. We are now back in the negotiation phase, dealing with several insurers that issued policies covering Studebaker. The case here is with Cooper Industries, determined to be a successor to the Studebaker Corporation. Mr. Leone believes the recovery will be six or seven figures. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously can-ied, the Commission approved the Engagement Letter from McGuire, Craddock &Strother, P.C. to serve a local counsel in connection with the former Oliver Plow Works property and South Bend's efforts to reach a settlement with TIC United for environmental conditions at that property. D. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. COMMISSION APPROVED THE ENGAGEMENT LETTER FROM MCGUIRE, CRADDOCK & STROTHER, P.C. TO SERVE A LOCAL COUNSEL IN CONNECTION WITH THE FORMER OLIVER PLOW' WORKS PROPERTY AND SOUTH BEND'S EFFORTS TO REACH A SETTLEMENT WITH TIC UNITED FOR ENVIRONMENTAL CONDITIONS AT THAT PROPERTY. 12 South Bend Redevelopment Commission Regular Meeting -November 6, 2009 6. NEW BUSINESS (CONT.) 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 fl1e Northeast Neighborhood Development Area. G. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. H. Ratification of Service Contracts Property Description Commission Role in Transaction Contractor Service Provided Contract Amount Staff Member 525 W Indiana Acquisition Witt Appraisal Svcs Appraisal 350 Relos 525 W Indiana Acquisition Michaels Appraisal Appraisal 350 Relos 1506 S Taylor St Acquisition Witt Appraisal Svcs Appraisal 350 Relos 1506 S Taylor St Acquisition Michaels Appraisal Appraisal 350 Relos Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission ratified the services contracts approved by staff since November 6, 2009. 7. PROGRESS REPORTS There was no report. PROGRESS REPORTS 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Friday, November 20, 2009 at 10:00 a.m. 13 South Bend Redevelopment Commission Regular Meeting -November 6, 2009 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Ms. King made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 10:33 a.m. Donald E. Inks, Director Marcia L Jones, President 14