HomeMy WebLinkAbout2. Minutes 2/5/10 MeetingSOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
February 5, 2010
10:00 a.m.
Presiding: Marcia I. Jones, President
1. ROLL CALL
Members Present:
Members Absent:
Legal Counsel:
227 West Jefferson Boulevard
South Bend, Indiana
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, 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. Ann Kolata, Economic Development Specialist
Ms. Debrah Jennings, Property Manager
Others Present: Mr. Tom Price, Mayor's Office
Mr. Jeff Gibney, Executive Director
Ms. Beth Leonard, Community & Economic Dev
Mr. Phil St. Clair, Parks & Recreation
Mr. Gary Gilot, Board of Public Works
Mr. Hardie Blake, Project Impact
Mr. James Summers, Project Impact
Mr. Mark Peterson, WNDU-TV
Mr. Don Schoenfeld, WNDU-TV
Mr. Joseph Kernan, South Bend Silverhawks
Ms. Rita Kopala
Mr. Mark Seaman, Prism Science
Mr. Jeff Lea, Patterson Dental
Ms. Mamie Ruiz, CB Richard Ellis
Ms. GlendaRae Hernandez
Ms. Oletha Jones
Ms. Linda Carter
Mir Xavier Witt
Mr. Shawn Todd, CB Richard Ellis
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
2. APPROVAL OF MINUTES
Mr. Nick Molnar
A. Approval of Minutes of the Regular Meeting of
Friday, January 15, 2010.
Upon a motion by Ms. King, seconded by Mr.
Downes and unanimously carried, the Commission
approved the Minutes of the Regular Meeting of
Friday, January 15, 2010.
3. APPROVAL OF CLAIMS
COMMISSION APPROVED THE MINUTES OF THE
REGULAR MEETING OF FRIDAY, JANUARY 15,
2010
Redevelopment Commission Claims submitted February 5, 2010 for approval.
305 FUND SBCDA BOND
Holladay Construction Group 93,062.00
324 AIRPORT AEDA
Abonmarche 12,700.00
The Blue Waters Group 32,557.25
Wightman Petrie 2,407.50
Indiana Michigan Power 51.04
Indiana Michigan Power 7.00
Wightman Petrie 2,590.00
Wightman Petrie 360.00
Abonmarche 3,500.00
Hathaway2 Inc 19,372.00
420 FUND TIF DISTRICT-SBCDA GENERAL
DTSB 28,125.00
CB Richard Ellis 753.50
Ampco System Parking
Schindler Elevator
Rose Pest Solutions
Indiana Michigan Power
Phifer Environmental Services
WNIT Facade Renovation
Mayflower Rd Sanitary Sewer
RC Marketing Srvc for Ignition Pk
Demo Former So Bend Iron & Metal
420 S William
501 Wenger St
Transpo Site
Ignition Park
Survey AEDA Boundary
Ignition Park
Streetscape Beautification
LaSalle Hotel Management Fee
St. Joseph St. Surtace / 225 Main St.
LaSalle Hotel
LaSalle Hotel
Fuel Oil Tank Excavation
1,927.65
150.00
93.00
219.74
4,125.00
2
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
3. APPROVAL OF CLAIMS (CONT.)
430 FUND SOUTHSIDE DEVELOPMENT TIF AREA #1
Meridian Title Corporation 800.00
435 FUND DOUGLAS ROAD TIF
Selge Construction 121,683.44 Douglas Rd Added Travel Lanes
$ 324,484.12
Upon a motion by Mr. Downes, seconded by Mr. Alford COMMISSION APPROVED THE CLAIMS
and unanimously carried, the Commission approved the SUBMITTED FEBRUARY 5, 2010, AND ORDERED
Claims submitted February 5, 2010, and ordered checks THE CHECKS TO BE RELEASED
to be released.
4. COMMUNICATIONS
There were no Communications.
5. OLD BUSINESS
There was no Old Business.
6. NEW BUSINESS
A. Tax Abatements
(1) Resolution No. 2645 approving an
application for real property tax deduction
for property located at 7055 Cleveland Rd.
(Patterson Logistic Services)
Mr. Mathia noted that Patterson Logistic
Services operates distribution facilities for
the company's medical, dental and veterinary
divisions. They propose to purchase an
existing 208,000 sq. ft. warehouse
distribution center that is only partially
occupied at this time. They will construct
physical improvements, including
mechanical and electrical upgrades, plus
10,000 sq. ft. of new office and supporting
space.
THERE WERE NO COMMUNICATIONS
THERE WAS NO OLD BUSINESS
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
6. NEW BUSINESS (CONT.)
A. Tax Abatement
(1) continued...
The existing building has aseven-year tax
abatement that Patterson intends to assume.
Patterson is also requesting up to an eight-
year tax abatement for the improvements
they will be making. The cost of the
construction is estimated to be $2,500,000.
The logistical equipment that will be
purchased includes racking, conveying
equipment, server equipment, cabeling, and
security equipment. The cost of the
equipment is estimated to be $9,000,000.
Total cost of the project is estimated at
$19,500,000, which includes purchase of the
existing building.
Patterson Logistics is in the early stages of
contracting for the work, so it does not have
a firm list of contractors and suppliers.
Based on current information, it is estimated
that Patterson could qualify for at least a
five-year tax abatement. However, the term
could be increased to as much as eight years,
based on additional points for construction
contractors and suppliers.
These are the cost/benefit estimates for both
a five-year and an eight-year abatement.
Total taxes to be abated during afive-year
abatement are estimated at $631,439. Total
taxes to be paid during afive-year abatement
are estimated at $931,271. Those figures
include the assumed abatement.
Total taxes to be abated during an eight-year
abatement are estimated at $705,185. Total
additional taxes to be paid are estimated at
4
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
6. NEW BUSINESS (CONT.)
A. Tax Abatement
(1) continued...
$1,795,150. Those figures include the
assumed abatement.
Patterson estimates the project will create
fifty new permanent, full-time positions with
an annual payroll of $1,040,000. The project
will also maintain sixty permanent, full-time
positions with a total annual payroll of
$1,620,000.
Patterson Logistics has not had any previous
abatements. The property is properly zoned
for the proposed use. The property is in the
Airport Economic Development Area;
therefore, the Redevelopment Commission
must approve any abatement before it is
considered by the Common Council. The
project qualifies for up to an eight-year real
property tax deduction under the tax
abatement ordinance.
Mr. Lea noted that Patterson companies has
been distributing in the South Bend area
since 1993. They currently have sixty
employees, supplying only dental products.
They will be consolidating some of their
other operations at this location.
Mr. Varner asked what considerations made
Patterson want to consolidate their operations
in South Bend. Mr. Lea replied that the
availability of this existing building was a
major factor, as well as the success of the
current operation in South Bend, and good
relationships with the existing employees
here.
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
6. NEW BUSINESS (CONT.)
A. Tax Abatement
(1) continued...
Upon a motion by Mr. Downes, seconded by
Mr. Varner and unanimously carried, the
Commission approved Resolution No. 2645
approving an application for up to an eight-
year real property tax deduction for property
located at 7055 Cleveland Rd. (Patterson
Logistic Services)
(2) Resolution No. 2646 approving an
application for personal property tax
deduction for property located at 7055
Cleveland Rd. (Patterson Logistic
Services)
Mr. Mathia noted that the total taxes to be
abated for the personal property (valued at
$9,000,000) are $391,446. Total taxes to be
paid during the personal property abatement
are estimated at $356,189.
The project qualifies for five years of
personal property tax deduction under the tax
abatement ordinance.
Upon a motion by Mr. Downes, seconded by
Mr. Varner and unanimously carried, the
Commission approved Resolution No. 2646
approving an application for personal
property tax deduction for property located at
7055 Cleveland Rd. (Patterson Logistic
Services)
B. South Bend Central Development Area
(1) Resolution No. 2648 approving and
authorizing the execution of an Addendum
COMMISSION APPROVED RESOLUTION NO.2645
APPROVING AN APPLICATION FOR UP TO AN
EIGHT-YEAR REAL PROPERTY TAX DEDUCTION
FOR PROPERTY LOCATED AT 7055 CLEVELAND
RD. (PATTERSON LOGISTIC SERVICES)
COMMISSION APPROVED RESOLUTION NO.2646
APPROVING AN APPLICATION FOR PERSONAL
PROPERTY TAX DEDUCTION FOR PROPERTY
LOCATED AT 7055 CLEVELAND RD. (PATTERSON
LOGISTIC SERVICES)
6
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
6. NEW BUSINESS (CONT.)
B. South Bend Central Development Area
(1) continued...
to the Master Agency Agreement (Two-
Way Traffic Plan, Lafayette William
Streets)
Mr. Schalliol noted that as part of the master
planning for the Coveleski Park project area,
traffic circulation has been identified as a
problem. The current road network is
troubled! Lafayette Street and William
Street, the main corridors through the project
area, are both one-way and two-way streets.
The current intersection layout at Western
and Lafayette is less than efficient with
confusing striping and awkward signal
timing. There are signalized intersections
that may not be necessary. It seems a good
time in the planning process to do a focused
plan for the transportation network in and
adjacent to Coveleski Park.
Attached is a proposal from Wightman Petrie
to complete an analysis and develop a traffic
design for the conversion of Lafayette and
William to a two way traffic system.
Wightman Petrie was hired by the
Commission in Fall 2008 to complete some
concept drawings. The attached proposal
will expand the concept plan; it also includes
intersection traffic counts and modeling,
review of equipment, site survey of key
intersections and the creation of a design and
plan for implementation. All work on this
project will be coordinated through
Engineering and Community and Economic
Development.
7
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
6. NEW BUSINESS (CONT.)
B. South Bend Central Development Area
(1) continued...
The Commission is being asked to authorize
the project. The contracting agent will be the
Board of Public Works. The contract allows
Wightman Petrie to advance the project. The
total cost of the proposal is $127,360. This
amount was in the budget approved
January 15, 2010.
Upon a motion by Mr. Varner, seconded by
Mr. Downes and unanimously carried, the
Commission approved Resolution No. 2648
approving and authorizing execution of an
Addendum to the Master Agency Agreement
with the Board of Public Works for aTwo-
Way Traffic Plan on Lafayette William
Streets
(2) Proposal for professional services related
to Coveleski Regional Stadium project.
(Phase lA Architectural Services)
Mr. Schalliol noted that over the past several
months the staff has worked to complete
elemental planning and design steps for the
Coveleski Regional Stadium renovation
project. Through the planning process, the
renovation project has developed into a
concept that will be designed in phases that
will allow construction to be implemented
over a period of years.
In November a presentation was made to the
Redevelopment Commission presenting the
concept drawings and design overviews for
the various phases of the renovation project.
As we have worked to finalize elements of
COMMISSION APPROVED RESOLUTION NO. 2648
APPROVING AND AUTHORIZING EXECUTION OF
AN ADDENDUM TO THE MASTER AGENCY
AGREEMENT WITH THE BOARD OF PUBLIC
WORKS FOR ATWO-WAY TRAFFIC PLAN ON
LAFAYETTE WILLIAM STREETS)
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
6. NEW BUSINESS (CONT.)
B. South Bend Central Development Area
(2) continued...
the first phase of renovation, several key
items have risen to a higher priority.
The contract proposal attached to this
memorandum deals specifically with a list of
items being identified as "Phase 1 A" of the
project ("Phase lA"). The items address
some basic facility features like concourse
restroom renovations, renovation or
replacement of the field lighting system, new
backstop netting and other facility
function/safety features. Also, an ADA audit
will be performed for the facility which will
aid in the master planning for future project
phases.
The work scope provided for in the
agreement will allow for development of
construction drawings and associated plans
and specifications for Phase 1 A. The goal is
to have items ready for quote or bid through
the Board of Public Works within 4 weeks
with construction to follow.
The agreement with Populous for the Phase
lA project totals Sixty-Four Thousand Five
Hundred Dollars ($64,500.00). A full
breakdown of costs is included as "Exhibit 4"
of this contract. Staff requests approval of
this proposal.
Mr. Varner asked if the funding source for
these projects is TIF or the capital budget.
Mr. Inks responded that funding will be from
TIF.
9
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
6. NEW BUSINESS (CONT.)
B. South Bend Central Development Area
(2) continued...
Mr. Downes noted that he is an investor in
the Silverhawks team. He does not believe
that he has a conflict of interest, but in the
interest of transparency, he intends to recuse
himself from voting on this item.
Mr. Varner made a motion to approve the
proposal for professional services related to
Coveleski Regional Stadium project. Ms.
King seconded. The motion passed on a vote
of four in favor. Mr. Downes abstained.
(3) Interlocal Agreement with Board of Public
Works and Department of Parks and
Recreation (Coveleski Stadium
Rehabilitation)
Mr. Schalliol noted that there are three
municipal agencies that will be involved with
this Coveleski Stadium Rehabilitation
project. The agencies include the Park
Board, the Redevelopment Commission and
the Board of Public Works. The interlocal
agreement will serve as the coordinating
governance document for this project.
The Project Team has worked with Populous
to develop an architectural services proposal
that deals specifically with the first phases of
the project ("Phase 1/lA") which is centered
at the home plate or center core part of the
ballpark. The Park Board will be scheduling
a special meeting to consider and approve the
same scope of work. A second proposal for
services for the remainder of Phase 1 will be
presented in the future after some
modification of the Scope of Work.
10
COMMISSION APPROVED THE PROPOSAL FOR
PROFESSIONAL SERVICES RELATED TO
COVELESKI REGIONAL STADIUM PROJECT
(PHASE 1 A ARCHITECTURAL SERVICES)
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
6. NEW BUSINESS (CONT.)
B. South Bend Central Development Area
(3) continued...
This interlocal agreement only pertains to
Phase 1/lA of this project and future phases
of the project will require an addendum to
this agreement.
Ms. King made a motion to approve the
Interlocal Agreement with Board of Public
Works and Department of Parks and
Recreation. Mr. Varner seconded the
motion. The motion passed on a vote of four
in favor. Mr. Downes abstained.
Mr. Inks asked that Item 6.E.(1) be moved up on the
agenda for consideration at this time. There was no
objection and the item was so moved.
E. South Side Development Area
(1) Resolution No. 2647 approving and
authorizing the execution of an Addendum
to the Master Agency Agreement (Erskine
Detention Pond Relocation Project -Phase
Two)
Mr. Schalliol noted that in an effort to create
development sites on the south side to further
commercial growth, the City of South Bend
has become involved in a project to reclaim
land currently being used as a retention pond.
The Erskine Plaza Pond Project is the result
of development and infrastructure planning
that will create a development parcel on
Miami Street south of Ireland Road and help
create new access into Erskine Plaza. The
project will also improve the storm water
management in the Ireland-Miami area and
COMMISSION APPROVED THE INTERLOCAL
AGREEMENT WITH BOARD OF PUBLIC WORKS
AND DEPARTMENT OF PARKS AND RECREATION
(COVELESKI STADIUM REHABILITATION)
11
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
6. NEW BUSINESS (CONT.)
E. South Side Development Area
(1) continued...
will reduce overflow impacts on the existing
storm water network and the Erskine Park
Golf Course.
The proposed project consists of removing
the existing pond along Miami, reshaping
and improving the existing interior pond, and
creating a new pond at the southwest corner
of Hawbaker and High Streets. Overflow
from the ponds will still be directed to the
stormwater system and the golf course, but
the need to divert water should be minimized
by the improved pond percolation and design
of the systems. The reclaimed pond site will
be filled and could become space for two
new south side tenants.
The Commission is being asked to authorize
the expenditure of funds from the South Side
Development Area TIF District to fund the
professional service contract with
Christopher B. Burke Engineering (CBBE).
The contract will allow CBBE to continue
with some pedevelopment activities like
surveys, deed review and easement research,
and development of plans and specifications
for construction of the new pond and related
infrastructure, as well as plans and
specifications for the modifications to the
existing ponds. The cost of the proposal is
$142,200, and staff requests approval of a
project budget not to exceed $145,000.00.
Mr. Varner asked what is driving this project:
drainage, a development project, or what?
Mr. Schalliol estimated total project costs,
12
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
6. NEW BUSINESS (CONT.)
E. South Side Development Area
(1) continued...
including construction, design, property
acquisition, will be $1,000,000. There is the
benefit of a new development site, for which
there is expressed interest. But equally
important is the drainage issue. When
Erskine Village was increased in size, the
drainage was not increased. The bypass was
constructed after the ponds were in place and
it dumps additional water into the ponds.
The improvements to the Miami/Ireland
intersection included sensors to keep excess
water from going into the combined sewer,
but then floods the golf course.
The new pond is larger and deeper. The
existing pond that will remain will be de-
mucked.
Upon a motion by Mr. Downes, seconded by
Ms. King and unanimously carried, the
Commission approved Resolution No. 2647
approving and authorizing the execution of
an Addendum to the Master Agency
Agreement (Erskine Detention Pond
Relocation Project -Phase Two)
B. South Bend Central Development Area (cont.)
(4) Resolution No. 2649 authorizing return of
deposit to Place Builders, Inc. (Rink
Riverside site)
Mr. Relos noted that on September 5, 2008, the
Commission accepted a proposal from Place Builders for
the development of the former Rink Riverside site. As
part of their 6. NEW BUSINESS (CONT.)
COMMISSION APPROVED RESOLUTION NO.2647
APPROVING AND AUTHORIZING THE EXECUTION
OF AN ADDENDUM TO THE MASTER AGENCY
AGREEMENT (ERSKINE DETENTION POND
RELOCATION PROJECT -PHASE TWO)
13
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
B. South Bend Central Development Area
(4) continued...
proposal, Place deposited the sum of $15,000
as a faithful performance guarantee. Since
development at the site did not move
forward, no contracts or agreements were
signed with Place Builders.
In the past month, another developer has
contacted the department with a strong
interest in the site. Preliminary meetings
have been held, site plans reviewed, and staff
hopes to have a full presentation from the
developer ready for the Feb 19 Commission
meeting.
Staff appreciates the time and effort Place
Builders put forth to develop this site, and
looks forward to working with them on
development of another site in the city.
However, to facilitate moving plans forward
with the new developer, staff requests the
approval of the return of Place Builders'
deposit in the amount of $15,000.
Upon a motion by Ms. King, seconded by
Mr. Downes and unanimously carried, the
Commission approved Resolution No. 2649
authorizing return of deposit to Place
Builders, Inc. (Rink Riverside site)
C. Airport Economic Development Area
(1) Proposal from The Lakota Group for
Area Land Use Planning and Zoning
Strategy for Ignition Park.
Mr. Relos noted that in November 2009 staff
received notification from the Area Board of
COMMISSION APPROVED RESOLUTION NO. 2649
AUTHORIZING RETURN OF DEPOSIT TO PLACE
BUILDERS, INC. (RINK RIVERSIDE SITE)
14
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
6. NEW BUSINESS (CONT.)
C. Airport Economic Development Area
(1) continued...
Zoning Appeals for a Special Exception Use
for a wrecker service to be located at 1313
Prairie Avenue. During meetings between
the Economic Development Department and
other city and county departments, it was
decided this would not be an appropriate use
since it is across the street from Ignition
Park, and we are already attempting to
relocate Hamilton Towing from the other
side of Ignition Park. The owners of the
property subsequently withdrew the request
for the Special Exception.
However, this circumstance caused staff to
take a new look at the uses around the park
and how to preserve the integrity of the
development sites within the park. It was
agreed we needed to begin to implement a
strategy to protect the park and its
surrounding area from uses that would
directly effect the viability of the Park
(vibration, electromagnetic, etc), and non-
conforming uses that would diminish the
marketability of the park. It was decided that
since the Lakota Group developed a similar
strategy for the Triangle Neighborhood and
down Eddy Street to Colfax, we would ask
for their expertise for the Ignition Park area.
Meetings and discussions were held with
department staff, members and staff of the
Area Plan Commission, Gary Gilot and
others, to discuss the vision for Ignition Park,
and how to best protect it and the area around
it. These discussions resulted in the
proposal from Lakota Group for the project's
15
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
6. NEW BUSINESS (CONT.)
C. Airport Economic Development Area
(1) continued...
scope of work for creating an Area Land Use
Planning and Zoning Strategy for Ignition
Park.
Lakota will investigate the necessary
regulations, planning, design, and zoning
mechanisms that could be added to the area's
Development Plan to protect the park. Parts
of this study area are residential in nature,
and these areas would remain residential,
with the exception of the already identified
area north of Indiana Avenue to the rail road
tracks, between Franklin and Prairie.
With the Commission's approval, Lakota
will begin the process outlined in the
attached proposal, with a completion date
projected for July of this year. Staff requests
the approval of this proposal, to begin the
process of protecting Ignition Park and its
surrounding area.
Mr. Gilot, Director of the Board of Public
Works and city representative to the Area
Plan Commission gave his support for the
proposed Area Land Use Planning and
Zoning Strategy. The two key parameters
are incompatible uses that would have either
too much electromagnetic force or too much
vibration for the sensitive technology uses
expected within the park. And, if this park is
to be the centerpiece of the new economic
development in South Bend, it needs to have
the appropriate visual characteristics that will
attract companies that will have choices of
where to locate. He said we want the
16
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
6. NEW BUSINESS (CONT.)
C. Airport Economic Development Area
(1) continued...
entrances to the park to be attractive and we
want to send a clear signal to the
development community of what's expected.
Mr. Varner asked for an example of a
company that might create an
electromagnetic field. Mr. Gilot responded
that large arc welding operations could; steel
coils being moved. Mr. Inks noted that this
study should identify what kinds of uses
would be problematic.
Mr. Varner was concerned about a zoning
overlay that would inhibit growth of Steel
Warehouse, a consistently growing company
in South Bend. Mr. Gilot agreed that Steel
Warehouse growing to the west would not be
a problem. Its growing to the east could be a
problem for Ignition Park.
Mr. Alford questioned why a towing
company would be a problem. It doesn't
have the functions just mentioned= by Mr.
Gilot This company was discouraged from
locating near Ignition Park. Mr. Gilot
responded that the unsuitability of the towing
company was cosmetic, related to its storage
of salvage cars. The city will find a place for
this company in South Bend, but not right
next to our premier technology park.
Upon a motion by Mr. Downes, seconded by
Mr. Varner and unanimously carried, the
Commission accepted the proposal from The
Lakota Group for Area Land Use Planning
and Zoning Strategy for Ignition Park for the
scope of services and fee proposed.
17
COMMISSION ACCEPTED THE PROPOSAL FROM
THE LAKOTA GROUP FOR AREA LAND USE
PLANNING AND ZONING STRATEGY FOR
IGNITION PARK FOR THE SCOPE OF SERVICES
AND FEE PROPOSED
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
6. NEW BUSINESS (CONT.)
C. Airport Economic Development Area
(2) Status report from Project Impact and
request for 2010 funding.
Mr. Summers thanked the Redevelopment
Commissioners for their support of Project
Impact. Without the Commission's support,
at least forty of the people they trained would
have gone back to jail. There would have
been at least two more deaths in the
community, and multiple acts of violence
that he knows of for sure. Dozens of families
have been strengthened as a result of the
Commission's decision to fund the program
in 2009. Eighty-two people were trained;
forty-nine found employment; and a
community was invigorated with hope.
Mr. Summers noted that Project Impact
embarked on its mission when the economy
was really tanking. That made it even more
unlikely that companies could afford to hire
Project Impact's clients. However, they have
used this year to develop an effective
network.
Steve Hartz, business owner and owner of
the Apprentice Academy, has promised to
personally facilitate meetings with other
business owners in 2010. Kathleen
Randolph, CEO of Economic Growth for
Regions II and III of WorkOne, has
committed to work closely with Project
Impact because the efforts complement one
another. Probation officers support Project
Impact. Bridges Out of Poverty, Memorial
Hospital, St. Joseph Regional Medical
Center, Urban Gardens and others partner
with Project Impact to pursue federal
STATUS REPORT FROM PROJECT IMPACT AND
REQUEST FOR 2010 FUNDING
18
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
6. NEW BUSINESS (CONT.)
C. Airport Economic Development Area
(1) continued...
funding. A small apparel manufacturing
company has placed five sewing machines at
Project Impact and is training clients to sew
and repair apparel. They will be making the
T-shirts for the Youth Service Bureau's
Dodge Ball Event in March. They have bid
on making choir robes for a local church and
football uniforms for a local high school.
The KROC center has committed to consider
a bid from Project Impact for its
construction. Turner Construction is going to
train construction management for women
and minority contractors so they can more
effectively participate in the KROC Center
construction. Mr. Summers said Project
Impact is getting very good at collaborating.
Mr. Summers noted that Project Impact is
requesting $350,000 of funding for 2010.
Mr. Varner asked where the funds for
supporting Project Impact come from. Mr.
Inks responded that they are Urban
Enterprise Funds from within the area where
the Airport Economic Development Area and
Urban Enterprise Zone overlap, essentially
the personal property taxes from A.J. Wright
which are dedicated to training. Later in the
meeting we intend to set a public hearing to
appropriate the funds from that account.
Ms. King asked if most of the formalized
training is done by the Apprentice Academy.
Mr. Summers agreed that it does. Ms. King
asked if the Apprentice Academy is privately
owned. Mr. Summers responded that it is.
19
South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
Steve Hartz formed it to train for his business
and other business owners that he was aware
needed the service. It is anon-profit
organization. The training is for welding,
machinists, CNA, etc. Ms. Leonard added
that they have been looking at starting to
train in the green technology field. They
continue to expand.
Ms. King asked about the stipend the
participants receive. Why do the amounts
vary? Mr. Summers responded that the
amount depends on how long they remained
in training. Some may not have completed
training. If a participant did not receive a
job, they would need additional training and
additional stipend.
Mr. Downes noted that there are fifty-two
participants trained and needing jobs, with
240 people waiting to participate in the
program. He asked what the realistic
expectation is for those fifty-two to get jobs.
Mr. Summers said he would be surprised if at
least half of those are not in jobs by the end
of 2010.
Ms. King asked for some explanation of the
ongoing support the participants receive
when they are placed in a job. Mr. Summers
said that participants make a commitment to
stay connected with Project Impact for one
year, preferably two years. During that time
they perform peer-to-peer mentoring; also,
someone from Project Impact contacts that
participant or a member of their family at
least once a month to see how things are
going. That continuous connection proves
that Project Impact really does care. They
provide encouragement.
Ms. King asked about the $240,000
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South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
commitment from WorkOne in the budget.
She wanted to know if that is a firm
commitment, is the number based on the
anticipated number of clients they would
assist. Mr. Summers responded that
WorkOne has committed to work with
Project Impact. That $240,000 is based on a
conservative number they expect WorkOne
to provide training for.
Ms. King asked if the $350,000 Project
Impact is requesting from the Commission is
for administration costs (personnel). Mr.
Summers responded that is correct.
Mr. Varner asked how Project Impact
anticipates increasing its funding from
sources other than the Urban Enterprise
training funds, particularly as they decrease.
Mr. Summers responded that a critical piece
was creating the partnership with WorkOne.
There needs to be economic development
growth in the community-- jobs available.
Project Impact will receive income from its
own job creation (construction, making
apparel). They have begun to sell
merchandise on their Web site. The
partnerships they are creating should help
them better compete for federal funds.
(3) Confidential Settlement Agreement and
Release with Chartis Insurers
Ms. Kolata noted that the Confidential
Settlement Agreement and Release with
Chartis Insurers related to environmental
claims made by the Commission and the City
of South Bend concerning the former Oliver
Plow property. The insurance companies
have agreed to pay the Commission and the
City an amount that has been approved by
our legal department. There are remaining
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South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
claims against other insurers. This one only
covers the Chartis Insurers.
Mr. Varner expressed his view that there is
something incongruous about asking the
Commission to approve and sign off on some
arrangement it knows nothing about. Mrs.
Kolata agreed, but could not say more. Mr.
Leone agreed that they could not say more.
Mrs. Kolata noted that our attorneys filed suit
against the successor companies to Oliver
Plow. The successor was traced to White
Farm and then to TIC United. TIC filed
bankruptcy in Texas. We filed a request for
judgment against TIC, not to coming out of
the bankruptcy, but only to come from their
insurers. That judgment has been finalized.
The last two insurance companies have been
some of the objectors to our filing. By
settling with these two agreements, the
objectors are taken out of the law suit. Then
that judgment goes into our case which is
being heard in Indianapolis, which is the
bigger insurance recovery case. There are
more major coverage partners which will be
part of the Indianapolis case.
Mr. Leone noted that the amount in this
settlement is proportionate to the amounts to
be gained from the other insurers, based on
the number of years they carried coverage
and the amount of coverage.
Mrs. Kolata noted that this settlement
specifically states that it only releases Chartis
from any further Oliver Plow claims, not
from any Studebaker claims.
Upon a motion by Mr. Downes, seconded by
Mr. Alford and unanimously carried, the
Commission approved the Confidential
COMMISSION APPROVED THE CONFIDENTIAL
SETTLEMENT AGREEMENT AND RELEASE WITH
CHARTIS INSURERS
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South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
Settlement Agreement and Release with
Chartis Insurers.
(4) SASCO Lease Extension Request
Mr. Relos noted that on September 18, 2009,
the Commission approved the Lease
Termination and Settlement Agreement with
Teacher's Credit Union for the old
Studebaker Engineering building at the
corner of Franklin and Sample, which houses
the Studebaker auto parts collection.
This Agreement called for a termination date
of February 14, 2010, to allow for the orderly
move of the auto parts collection. This move
is going very well, but because of the sheer
magnitude of the collection, the purchaser of
the auto parts has asked for a one month
extension to complete the move.
Mr. Relos noted that he and Mr. Inks went to
see the progress personally and report that
the progress on the move so far is truly
amazing.
Section 4 of the Agreement requires that an
extension be approved in writing by both the
Redevelopment Commission and TCU. TCU
is agreeable to this extension.
Because the granting of this extension will
not effect the demolition schedule for this
building or the old Foundry, staff requests
approval of this extension
Upon a motion by Mr. Downes, seconded by
Mr. Varner and unanimously carried, the
Commission approved the SASCO Lease
Extension Request.
D. West Washington-Chapin Development Area
COMMISSION APPROVED THE SASCO LEASE
EXTENSION REQUEST
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South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
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. Ratification of Temporary Use Agreements
Upon a motion by Mr. Downes, seconded by Mr.
Varner and unanimously carried, the Commission
ratified the Temporary Use Agreement for
I. Other
(1) Resolution No. 2650 setting a Public
Hearing on the appropriation of tax
increment financing revenues from
various allocation areas for the payment of
certain obligations and expenses related to
their respective allocation areas and other
related matters.
Ms. Leonard noted that the public hearing
will be March 5, 2010 at 10:00 a.m. The
appropriation will not exceed $350,000.
Upon a motion by Mr. Downes, seconded by
COMMISSION APPROVED RESOLUTION NO. 2650
SETTING A PUBLIC HEARING ON THE
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South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
Mr. Alford and unanimously carried, the
Commission approved Resolution No. 2650
setting a Public Hearing on the appropriation
of tax increment financing revenues from
various allocation areas for the payment of
certain obligations and expenses related to
their respective allocation areas and other
related matters, setting the public hearing for
10:00 a.m., March 5, 2010.
(2) Master Service Agreement with Crowe
Horwath. (Accounting, Financial and
Other Consulting Assistance)
Mr. Inks noted in the past we have individual
service agreements with Crowe. This year
we expect to contract with Crowe numerous
times and have decided that a Master Service
Agreement would be appropriate. The
proposed Master Service Agreement will
provide for accounting, financial and other
consulting assistance. Accounting assistance
is not to exceed $15,000. Financial advisory
services relate to debt financing and will
typically not exceed $40,000 per issuance.
Other consulting assistance is not to exceed
$45,000 and may include items such as TIF
Neutralization Worksheets, New Market Tax
Credits and analysis of TIF parcels in various
TIF areas.
In a typical year, we have Crowe do the TIF
Neutralization Worksheets. Occasionally we
may have Crowe do some TIF parcel analysis
or work on a bond issue. These projects have
always been done, as needed, under a
specific project proposal.
This year we anticipate we may have several
projects requiring services from Crowe and
believe a Master Service Agreement would
be appropriate. In addition to the projects
APPROPRIATION OF TAX INCREMENT FINANCING
REVENUES FROM VARIOUS ALLOCATION AREAS
FOR THE PAYMENT OF CERTAIN OBLIGATIONS
AND EXPENSES RELATED TO THEiR RESPECTIVE
ALLOCATION AREAS AND OTHER RELATED
MATTERS, SETTING THE PUBLIC HEARING FOR
10:00 A.M., MARCH 5, 2010
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South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
noted above, we may also need assistance
with Recovery Zone Economic Development
Bonds and Recovery Zone Facility Bonds.
Related to the Erskine Commons and Erskine
Village developments, we may need
assistance paying down bonds prior to
maturity. And, we may need assistance to do
anew estimate of the TIF to be generated by
Eddy Street Commons. Given the number
and variety of projects we may need
assistance with, a Master Service Agreement
appears to be worthwhile.
Crowe has a very similar Master Service
Agreement with the City of South Bend, and
according to the City Controller that
agreement has worked well. The Controller
has reviewed the proposed Master Service
Agreement for Redevelopment and believes
it will work well, too.
Staff recommends Commission approval of
the proposed Master Services Agreement.
Upon a motion by Mr. Downes, seconded by
Ms. King and unanimously carried, the
Commission approved the Master Agency
Agreement with Crowe Horwath.
(Accounting, Financial and Other Consulting
Assistance)
7. PROGRESS REPORTS
There was no report.
8. NEXT COMMISSION MEETING
The next meeting of the Redevelopment Commission is
scheduled for Friday, February 19, 2010 at 10:00 a.m.
9. ADJOURNMENT
COMMISSION APPROVED THE MASTER AGENCY
AGREEMENT WITH CROWE HORWATH.
(ACCOUNTING, FINANCIAL AND OTHER
CONSULTING ASSISTANCE)
PROGRESS REPORTS
NEXT COMMISSION MEETING
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South Bend Redevelopment Commission
Regular Meeting -February 5, 2010
There being no further business to come before the ADJOURNMENT
Redevelopment Commission, the meeting was
adjourned at 11:22 a.m.
Donald E. Inks, Director
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