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HomeMy WebLinkAbout2. MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING November 20, 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. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. David Relos, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mr. Tom Price. Mayor"s Office Ms. Elizabeth Leonard, Comm & Econ Dev Ms. Rita Kopala Mr. Mark Seaman, Prism Ms. Linda Wolfson, Community Forum for Economic Dev Mr. Jerry Niezgodski Mr. John Quickstad, Blackthorn Golf Club Mr. Rick Reid. Blackthorn Golf Club Mr. Richard Nussbaum Ms. Jamie Ruiz, CB Richard Ellis Mr. Mark Peterson, WNDU Mr. Greg Chrisiovich Ms. Constance Green Mr. Terry Coleman K. Wilder, OPCMIA Mr. Murry Miller Mr. Robert Banos, Far West Side Neighborhood Association Mr. Rufus Chapman, Community Forum for Economic Development South Bend Redevelopment Commission Regular Meeting November 20, 2009 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, November 6, 2009. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously can-ied, the Commission approved the Minutes of the Regular Meeting of Friday, November 6, 2009. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY. NOVEMBER h. 2009 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted November 20, 2009 for approval. 305 FUND SBCDA BOND Selge Construction Co. Inc. 40,517.50 Lafayette Monroe Streetscape The Troyer Group 6,120.49 WNIT Interiors 324 AIRPORT AEDA Airport Urban Enterprize Zone 230,499.28 Transfer of UEZ tax receipts. Selge Construction Co. Inc. 45,189.15 RC Main & Stull Streetscape Improv Michaels Appraisal Services 700.00 Profession Services Meridian Title Corp 41,842.49 Purchase of 1508 S. Taylor St. Witt Appraisal Services 1,050.00 Professional Services Blue Waters Group 58,603.23 Contract Abonmarche 26,000.00 Mayflower Rd Sanitary Sewer Wightman Petrie 3,442.50 Demo-Former South Bend Iron Wightman Petrie 7,535.00 Ignition Park Enviromental Asses AEP/Indiana Michigan Power 7.00 501 Wenger Wells Fargo 400.00 Paying Agent fee, TJX Bonds DLZ Indiana 23,322.50 Oliver Pine Road Project 420 FUND TIF DISTRICT-SBCDA GENERAL Madison Center 48,000.00 Selge Construction Co. Inc. 25,718.41 Downtown South Bend 22,671.50 Wightman Petrie 1,500.00 Phifer Environmental Services LLC. 7,275.00 Michiana Lock & Key 32.85 CB Richard Ellis /Bradley 1,644.94 $ 592,071.84 Return of Performance Bond Lafayette/Monroe Streetscape Beautification Program Streetscape Demo Specs-William St. Manor Professional Consulting Services For LaSalle Hotel LaSalle Hotel-Mgmt Fees Upon a motion by Mr. Do~~nes, seconded by Ms. King and unanimously can•ied, the Commission approved the Claims submitted November 20, 2009, and ordered checks to be released. COMMISSION APPROVED THE CLAIMS SUBMITTED NOVEMBER 20, 2009, AND ORDERED THE CHECKS TO BE RELEASED 2 South Bend Redevelopment Commission Regular Meeting -November 20, 2009 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. South Bend Central Development Area (1) Proposal for additional environmental assessment at Main and Western site. Mr. Schalliol noted that as a result of the Phase I and II site investigations that have been performed on the Main and Western disposition parcel, additional site investigation and remediation needs to be done on-site to prepare the parcel for future development. On November 18 a site investigation was conducted to determine the final scope of work that is required associated with subsurface conditions. During the Phase II ESA, it was determined that there are two areas of subsurface concern that require further investigation. The Ground Penetrating Radar (GPR) test noted two reflection patterns that appeared to be underground storage tanks. The most recent use for the parcel, before being cleared and paved for parking, was a Shell Gas Station located on the site from 1968 to 1975 and then demolished in 1986. Our consultant was able to find records for tanks located on the property associated with the gas station, but not record of tanks being located in the location of the echoes. Upon investigation Wednesday, it appears that the echo patterns THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting -November 20, 2009 were for one heating oil tank and construction debris associated with the buildings located on the site prior to the gas station. It appears that the tank was not filled in place (unsure if product is in the tank) and will require removal along with the removal of the construction debris. The second spot of interest is adjacent to the first site and during the GPR process a section of "disturbed soils'' was identitied that contained potentially unsuitable soils that were quantified and processed while doing the Geotechnical Probes for soil and ground water testing. The readings on the soils were not of great concern except for a pocket of materials near the depth of the probe which might need to be remo~-ed pending review of further results. No site investigation was done related to this property on Wednesday and further testing might be required as we move forward with this project. Attached is a proposal fi•om Phifer Environmental Services to coordinate the site investigation and clean-up activities. The proposal is broken into three phases: (1) Site Investigation, (2) UST Removal and (3) Site Work/Soil Removal. The proposed amount for Tasks 1 and 2 total $1 1,810.00. Task 3 is figured based on quantities of what needs to come out of the ground and what needs to go back in the ground. As the work has not yet started, I worked with the consultant to look at some numbers for removal and replacement and I would recommend a figure of $25,000 for this work. In the event that additional funds are needed, staff will come back to the Commission for additional approval. 4 South Bend Redevelopment Commission Regular Meeting -November 20, 2009 In total, between Tasks 1-3, staff requests an approval amount of $36,810.00. Mr. Downes asked what "historically recognized environmental condition"" means. Mr. Schalliol responded that the knowledge that a gas station was on the site previously is a red flag that there could be some environmental remediation needed. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission accepted the proposal from Phifer Environmental for an amount not to exceed $36,810 for additional environmental assessment at Main and Western site. B. Airport Economic Development Area (1) Staff report and recommendation for Operation and Management of Blackthorn Golf Course. Mr. Inks noted that the Redevelopment Commission at its meeting on October 2"`~ received 7 proposals for management of the Blackthorn Golf Course. Staff reviewed and summarized these proposals for the following qualifications: Management experience Corporate resume Management fee Golf pricing structure Marketing plan Course staffing Capital budget Operations plan Sales and expense reporting and accounting systems Maintenance schedules for buildings and grounds COMMISSION ACCEPTED THE PROPOSAL FROM PHIFER ENVIRONMENTAL FOR AN AMOUNT NOT TO EXCEED $36,R 10 FOR ADDITIONAL ENVIRONMENTAL ASSESSMENT AT MAIN AND WESTERN SITE South Bend Redevelopment Commission Regular Meeting -November 20, 2009 Based on this review it was apparent that several of the proposing companies had the potential to effectively manage the golf course. The three companies with the most potential were selected for an interview. The intewiews were conducted 1 1/ 1 1 by a team composed of Dave Varner and Greg Downes from the Redevelopment Commission, John Schalliol representing the Airport Authol-ity and Don Inks, Redevelopment Director. The three companies interviewed included Meadowbrook Golf, Kemper Spo~~s and Kitson & Partners Club Services. After the interviews, it was concluded that all three had the ability to manage Blackthorn, and all three were proposing the same management fee of $96,000 per year. However, Kitson included a Strategic Planning service as a part of their proposal for an additional fee. This Strategic Plan would include a market assessment, identification and evaluation of alternatives, prioritize options and make a final recommendation. The golf industry as a whole is suffering from oversupply, and the local market is no exception. This situation is expected to continue, so it does not appear that more than mar;~inal improvement in Blackthorn's financial performance can be anticipated. And. given recent concerns about the future of Blackthorn Golf Course, raised by the Redevelopment Commission and the public, Kitson~s Strategic Planning component was well timed and well received. The cost of this plan would be S 10,000. The Interview Team recommends the Commission accept the proposal of Kitson & Partners Club Services, including the 6 South Bend Redevelopment Commission Regular Meeting -November 20, 2009 proposal for Strategic Planning Services. Mr. Varner noted that in the interviews he asked each applicant whether Blackthorn Golf Course could stand on its own, without public support. None of the applicants thought it could. Therefore, the prospect of a strategic planning effort to consider private ownership some time in the future appealed to him, all other qualifications being equal. Mr. Downes commended Mr. Inks for the due diligence he did prior to the interviews. He agreed all of the firms interviewed were well qualified. He wanted everyone to be assured that the recommendation of Kitson & Partners was not a criticism of the past perfoi-~nance of Meadowbrook in managing the golf course. He, too, agreed that we need to take a step back and assess what we are ;going to do in the future. We aren't going to market out way out of the oversupply of golf courses. Fortunately ?009 was a good year, weather-wise, for golf. That was reflected in the improved financial condition of the course. He feels that Kitson R Partners is well qualified to do the sri•ategic planning proposed. Ms. Jones noted that the Commissioners who participated in the interviews represented appointments by the Common Council and the Mavor's office. They both have stron;~ financial analysis abilities. With the loss of tax revenues over the last couple of years, the city has looked for ways to be more efficient. The proposal for strategic planning from Kitson & Partners gives us an opportunity to investigate whether we could use public funds more wisely. Ms. King and Mr. Alford agreed that the 7 South Bend Redevelopment Commission Regular Meeting -November 20, 2009 committee had been diligent and made a good choice. Upon a motion by Mr. Varner, SeCOnded by COMMISSION AC'C'EPTED THE RECOMMENDATION MS. 1{lrig and Unan11110US1y Ca1T1Cd, the OF THE SELECTION COMMITTEE TO HIRE KITSON COI111111SSIOn accepted the 1'eC0ffiIllendatlOn ~ PARTNERS TO MANAGE BLACKTHORN GOLF Of the SeleCtlOn COI111711ttee t0 hlre Kitson & COURSE ON A THREE YEAR CONTRACT AT $9(~•QQQ PER YEAR AND TO ALSO HIRE KITSON & Partnel'S t0 Illanage Blackthorn GOIf COUI'Se PARTNERS TO PERFORM STRATEGIC PLANNING On a thl"ee yeal• COntl'aCt at $96,~~~ per year FOR THE GOLF COURSE AT A COST OF $10,000 and to also hire Kitson & Partners to perform strategic planning for the golf course at a cost of $10,000. (2) Authorization requested to acquire properties at tax sale. (EMI and Millennium Environmental. Mr. Schalliol noted that in October, the St. Joseph County Treasurer completed the tax sale process for tax delinquent properties in St. Joseph County. The city has been working with the County Commissioners to buy certain properties off the tax sale list to help facilitate redevelopment oppol-tunities in certain development areas. As part of the sale process, the Commissioners are authorized to hold a tax sale to sell properties that have completed the initial sale process. The staff is working to acquire two parcels that will be acquired. remediated and cleared for future development. Staff is working on budgets for the demolition. site preparation and other environmental services and a budget will be finalized and presented once we know that the transaction will move forward. The parcels are as follows: Millen~iium Environmental, Iitc. 604 S Scott Street Account balance as of 2009 sale: ~ 1,135,949.58 South Bend Redevelopment Commission Regular Meeting November 20, 2009 #1 on Tax Sale List (2009 sale) EMI 2020 S Main Street Account balance as of 2009 sale: $204,069.14 #6 in South Bend / #8 in County (2009 sale) Staff requests authorization to work with legal counsel and the County to move forward with the acquisition of properties that the Commissioners are able to process through the sale process. At the present time, the Commissioners estimate that the total value per parcel required to be paid by the Redevelopment Commission will be Five Hundred Dollars per parcel. The attorney for the County is requiring partial pa}nnent in the amount of $250 per parcel by November 24`x' to move this transaction forward. Mr. Varner asked about the environmental liability that might be incurred by acquisition of these buildings. Mr. Schalliol responded that while pursuing acquisition through the tax sale, staff will also be trying to determine how much expense might be incurred with the environmental liability. We wont acquire the property without knowing the full cost. Ms. Jones asked whether there might be other funds available to help with environmental cleanup. Mr. Schalliol said that they would expect to pursue additional funding from several sources. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission authorized staff to acquire properties at tax sale. (EMI and Millennium Environmental COMMISSION AUTHORIZED STAFF TO ACQUIRE PROPERTIES AT TAX SALE. (EMI AND MILLENNIUM ENVIRONMENTAL 9 South Bend Redevelopment Commission Regular Meeting -November 20, 2009 C. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. D. South Side Development Area There was no business in the South Side Development Area. E. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. F. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. G. Ratification of Services Contracts Upon a a motion by Mr. Downes, seconded by Ms. King and unanimously cal-ried, the Commission ratified the approval of proposals from Witt Appraisal Services and Michaels Appraisals in the amount of $350 each for appraisal of 1510 S. Taylor Street. H. Ratification of Temporary Use Agreements COMMISSION RATIFIED THE APPROVAL OF PROPOSALS FROM WITT APPRAISAL SERVICES AND MICHAELS APPRAISALS IN THE AMOUNT OF $3SO EACH FOR APPRAISAL OF >, 5I O S. TAYLOR STREET Upon a IllOtlOn by MI'. Downes, Seconded by MS. COMMISSION RATIFIED THE USE OF TWO Klllg and Unan11110US1y Cal-1'led, the COI111111SSlOn PARKING SPACES IN THE HALL OF FAME WEST I'atlfied the use Ot two pal'kmg SpaCCS m the Hall Ot PAR ING LOT FROM NOVEMBER 30-DECEMBER 30, <009 FOR THE SANTA HOUSE Fame west parking lot fi'om November 30- December 30, 2009 for the Santa House. 7. PROGRESS REPORTS MI'. InICS noted that Staff wOUld 111Ce t0 the a pI'Operty taX PROGRESS REPORT ON THE PLANNING PROCESS appeal related to the State Cafe retail space in the FoR COVELESKI PARK 10 South Bend Redevelopment Commission Regular Meeting November 20, 2009 Wayne Street garage. The taxes being assessed for 2008 payable 2009 are $2.17 per sft. Taxes for other eating establishments nearby are $.77 per sft. We are concerned that the property is over-assessed. That has been a tough space for us to lease. We feel it is appropriate to pursue a property tax appeal. He asked for authorization to sign any documents necessary to pursue the appeal. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously catTied, the Commission authorized staff to sign necessary documents related to appealing taxes for the State Cafe retail space in the Wayne Street garage. Mr. Inks noted that Mr. Schalliol will be making a presentation to the Common Council and Park Board over the next week regarding Coveleski Park planning. He wanted to make that same presentation to the Commission. Mr. Schalliol noted that Populous/HOK Sport was retained by the Commission about t~~~o and a half years ago to assist in the planning process for Coveleski Park and the surrounding neighborhood, including a facility plan for the ballpark. He showed maps of what properties the Commission owned before the planning process began and what has been acquired since. He showed a schematic of a couple of different options of how the entrance could be added toward downtown, the picnic area and children's hillside switched so the picnic area wouldn't look into the sun and the kids area made safer; The suites are proposed to be redesigned to be larger, but outside, with some enclosed suites higher, above a smaller press box. The concow-se would run all the way around the ballpark. The first phase of improvements would include right and left field improvements, a new entrance and improvements to the field itself. The field is 15 years old. The drainage system is insufficient; having caused numerous cancelations because of a wet field that COMMISSION AUTHORIZED STAFF TO SIGN NECESSARY DOCUMENTS RELATED TO APPEALING TAXES FOR THE STATE CAFE RETAIL SPACE IN THE WAYNE STREET GARAGE South Bend Redevelopment Commission Regular Meeting -November 20, 2009 couldn"t be drained. A big factor in how the stadium is redesigned will be how much land in that block we want to remain available for development and parking. Mr. Schalliol noted that when Coveleski Ballpark was built, it became the model for others that were built later. Now, all but two of the fields in the Midwest Division are newer than Coveleski and have been built with newer features. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is scheduled for Friday, December 4, 2009 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Ms. King made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 10:45 a.m. Donald E. Inks, Director NEXT COMMISSION MEETING ADJOURNMENT David Varner, Vice President 12