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HomeMy WebLinkAbout2. Minutes 02-19-10 Meeting SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING February 19, 2010 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 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: Mr. Jeff Gibney, Executive Director Mr. Tom Price, Mayor’s Office Ms. Rita Kopala Ms. GlendaRae Hernandez Mr. David Matthews, Ivy Court Mr. Nick Molnar Mr. Marco Mariani, Downtown South Bend, Inc. Mr. Greg Conrad, Downtown South Bend, Inc. Ms. Janice Talboom, City Clerk’s Office Ms. Mo Miller, Prism Science Mr. Mark Seaman, Prism Science Mr. Phil St. Clair, Parks & Recreation Mr. Paul McMinn Parks & Recreation Mr. Gary Libby, Code Enforcement Ms. Catherine Toppel, Code Enforcement Mr. Jeff Parrott, South Bend Tribune Ms. Valerie Schey Ms. Kim Lucas Ms. Linda Carter, I.A.G.O./YouthBuilding Mr. Ed Carter Ms. Christa Wayder, Area Plan Commission South Bend Redevelopment Commission Regular Meeting –February 19, 2010 Mr. DaMar Benford Mr. Richard Rufus Mr. Ronald Phelps 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, February 5, 2010. Mr. Varner referred to page 22 of the February 5, 2010 Meeting Minutes which pertained to the discussion of Ms. Kolata’s item asking the Commission to approve a settlement with Chartis Insurers, which terms were confidential. Mr. Varner took issue with asking the Commission to approve something, sight unseen. He spoke with Mr. Leone following the meeting and got some clarification. Mr. Varner asked Mr. Leone now to explain the situation further in this public setting. Mr. Leone noted that the subject matter had to do with the settlement of certain environmental claims with some insurers, companies that were in bankruptcy in a case that is pending in Houston, Texas. The Settlement Agreement that was signed has a confidentiality clause in it which is typical in these kinds of settlements. But, there is also language in the agreement that says that the confidentiality provision does not supersede Indiana law which allows for discovery of certain public records. So, that now is available to anybody who does want to see the content of the settlement, including the monies that are received. Mr. Varner clarified, then, that the terms are not privileged information. Mr. Leone agreed. The information is discoverable through appropriate channels, namely the Freedom of Information Act. CM Upon a motion by Mr. Downes, seconded by Ms. OMMISSION APPROVED THE INUTES OF THE RMF,F, EGULAR EETING OF RIDAY EBRUARY King and unanimously carried, the Commission 2010 approved the Minutes of the Regular Meeting of Friday, February 5, 2010. 2 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted February 19, 2010 for approval. 305 FUND SBCDA BOND The Troyer Group 11,250.52 Curb & Sidewalk 101 N Michigan Holladay Construction Group LLC 71,250.00 Notice to Proceed/Construction 324 AIRPORT AEDA Blackthorn Corporate Park 34,057.92 Property Management Circle Lumber, inc 69.29 525 W Indiana Board Jackson Trucking & Excavation 47,450.00 Demo 1202 S Lafayette Sopko, Nussbaum, Inabnit & Kaczmarek 5,096.25 Legal Services DLZ 13,620.00 Expansion Of Olive & Pine Rd Abonmarche 15,555.00 Mayflower Rd Sanitary Sewer DLZ 6,870.00 US 31 / Adams Rd Interchange Blue Waters Group Ignition Park 31,240.21 Wightman Petrie Environmental Assessment Ignition Pk 160.00 420 FUND TIF DISTRICT-SBCDA GENERAL Indiana Michigan Power 245.18 LaSalle Hotel Schindler Elevator 13,620.00 LaSalle Hotel All Phase Electric Supply Co. LaSalle Hotel 883.89 Sopko, Nussbaum, Inabnit & Kaczmarek 1,237.50 Legal Services Ampco System Parking 1,686.00 oseph St Surface 121 S. St. 422 TIF DISTRICT WEST WASHINGTON Sopko, Nussbaum, Inabnit & Kaczmarek 337.50 Legal Services 433 REDEVELOPMENT ADMIN GENERAL Sopko, Nussbaum, Inabnit & Kaczmarek 675.00 Legal Services $ 255,304.26 CC Upon a motion by Mr. Downes, seconded by Mr. Alford OMMISSION APPROVED THE LAIMS F19,2010, SUBMITTED EBRUARY AND ORDERED and unanimously carried, the Commission approved the THE CHECKS TO BE RELEASED Claims submitted February 19, 2010, and ordered checks to be released. 4. COMMUNICATIONS A. Communication from I.A.G.O. /YouthBuild CI.A.G.O./YB Mr. Inks summarized the Communication from OMMUNICATION FROM OUTHUILD 3 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 I.A.G.O./YouthBuild. The letter was written February 11, 2010 to the Redevelopment Commission. It summarizes I.A.G.O.’s programs designed to assist young adults, ages 16-24 yrs, who lack secondary education attainment, either a diploma or GED, or lack job readiness certification and skills needed to attain gainful employment throughout the South Bend urban area. YouthBuild South Bend is an affiliate of the national program YouthBuild USA. “Because I.A.G.O. has been successfully providing skills such as resume writing, job interview preparation, mentoring opportunities with local business men and women, and tutoring programs through youth throughout St. Joseph County for the last seven years, we felt combined efforts of the two programs would be an unstoppable force for good for our youth. “Because we now offer certification programs with management level skills, we not only prepare our youth to go get a job, we teach them how to create employment opportunities for themselves and others, thus widening the market for their employable skills. “We are asking that you review our request for assistance in the amount of $108,300 to implement the YouthBuild South Bend program.” Mr. Inks noted that the letter provides additional program information, statistics, and a budget for the program. The total budget for the program is almost $700,000. Mr. Downes asked that staff look into this and make a recommendation to the Commission at a later meeting. 5. OLD BUSINESS 4 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 TOB There was no Old Business. HERE WAS NO LD USINESS 6. NEW BUSINESS A. South Bend Central Development Area (1) Agreement for Services with Downtown South Bend, Inc. Mr. Mariani noted that the Agreement for Services is for $250,000 for the same scope of services DTSB has been providing under the current agreement. On pg 21, the project budget outlines DTSB’s activities. The bulk of the $250,000 funds cleaning, maintenance, hospitality, and beautification activities in downtown, as well as DTSB’s business recruitment efforts. Mr. Mariani distributed DTSB’s list of priorities for 2010. Mr. Mariani also noted that DTSB just received its third “clean” audit for 2009. Mr. Mariani noted that DTSB’s overall budget has been reduced by $34,000 for 2010, reflecting what is happening in the overall economy. It is doing more with less. Ms. King asked what DTSB’s total revenue budget is. Mr. Mariani responded $749,000, including contributions from the private sector, parking lot revenue, sponsorships and grants, and contributions from the city’s General Fund. Mr. Varner asked from which revenue source the $34,000 revenue cut came. Mr. Mariani responded from private contributions. Mr. Downes commented as a new downtown resident he can’t say enough about the job DTSB does. Its staff is courteous, visible, and they make downtown a better place to 5 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 live. CA Upon a motion by Ms. King, seconded by OMMISSION APPROVED THE GREEMENT FOR SDSB,I ERVICES WITH OWNTOWN OUTH END NC Mr. Downes and unanimously carried, the Commission approved the Agreement for Services with Downtown South Bend, Inc. for 2010. (2) Resolution No. 2655 amending the Development Plan for the South Bend Central Development Area and adding one parcel to the List of Parcels to be Acquired. Mr. Schalliol noted that Resolution No. 2655 is a declaratory resolution which begins the process to add eight parcels at the northeast corner of Niles and Jefferson (formerly the Troegger Sheet Metal site) to the Development Plan Acquisition List. The property was bought from Troegger by First National Bank of Valparaiso as they considered adding a branch in South Bend. st 1 Source Bank then purchased First National Bank of Valparaiso. As the Commission looks to make infrastructure and other improvements related to the East Bank Master Plan, having this property under city control would be helpful, allowing flexibility in planning. Presently, there is a paved lot at the north end of the site. When the Troegger building was demolished, that portion of the site was surfaced with gravel and has been used for parking. Mr. Schalliol noted that following approval by the Commission, the amendment must be approved by the Area Plan Commission, the Common Council and return to the Redevelopment Commission for a 6 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 confirming resolution and public hearing. Mr. Downes asked who owns the parking north of the Emporium Restaurant. Mr. Schalliol responded that the Emporium owns the portion immediately north of its building. The City of South Bend owns the adjacent stretch of parking to the north which is also used by Emporium customers. Ms. Jones asked if staff will provide not only the cost of acquisition, but the cost of any improvements that will need to be made to the property in the near term. Mr. Schalliol responded that staff will provide that information at the time of the public hearing. Ms. Jones asked whether this lot will provide the city with sufficient temporary surface parking, and ultimately the flexibility for a parking structure as identified in the East Bank Master Plan. Mr. Schalliol responded that it does. CRN.2655 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O AMENDING THE DEVELOPMENT PLAN FOR THE Mr. Alford and unanimously carried, the SBCDA OUTH END ENTRAL EVELOPMENT REA Commission approved Resolution No. 2655 AND ADDING ONE OR MORE PARCELS TO THE amending the development plan for the South LPA IST OF ARCELS TO BE CQUIRED Bend Central Development Area and adding one or more parcels to the List of Parcels to be Acquired. (3) Staff report on disposition of property in the South Bend Central Development Area (Rink Riverside site) Mr. Relos noted that the Rink Riverside site is a .83-acre site located at the northwest corner of Sycamore and East Colfax Streets. It was cleared in 2005 and offered for disposition in 2006. Two developers previously offered proposals for the site, 7 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 neither of which progressed beyond the planning stages. In 2008 another development was proposed, but did not progress either. In December 2009 David Matthews approached the department with a proposal to develop ten townhouse style condominiums. Eight of the units will face the river; two will face south off the northern property line. Units will be two-story, brick, with nine-foot ceilings and two-car attached garages. The minimum unit size will be 1,700 sq. ft. The starting price will be approximately $170,000. The developer is offering $10,000 for the parcel and will not apply for tax abatement for the project. Though the selling price is less than that offered in previous proposals, earlier proposals relied on the Commission to put at least as much as the selling price back into the development. This proposal asks only for modest Commission participation: cleaning up the west bank of the river and possible participation in the cost of a retaining wall along the west and south edges of the development. The Contract for Sale of Land is being drafted with development specifications, use restrictions and a completion date of 36 months. Mr. Matthews noted that his interest in doing this development stems from his recognition of two driving forces: a growing demand among the young for living downtown and a need among older residents who can no longer drive to live close to the amenities they need. 8 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 Some Granger residents have toured Mr. Matthews’ Ivy Quad condos across from the Notre Dame campus, but found them too pricey. They were impressed with the quality. Mr. Matthews believes he can build units they like for a more affordable price on the East Bank site. Those interested parties liked the East Bank site. Two families have verbally committed to purchasing units from him there. He will construct those two immediately and another as well as a model. He’ll then construct more units as they are ordered, including basements when ordered at additional cost. The units will all have rooftop patios. Mr. Matthews noted that the site itself is a little low. He intends to bring in two to seven feet of additional soil to raise the development. Mr. Downes asked about the long timeline of 36 months to completion. He asked if financing was driving that timeline. Mr. Matthews said the city put that timeline out. He likes the leeway it gives him, but he intends to get under construction immediately to have the first units completed by fall 2010. The 36 months give him time to complete the entire ten units in case sales are slower than expected. Mr. Matthews said he has financing for the entire project. Mr. Downes noted that a previous developer wanted the Commission to improve the riverbank. He asked whether Mr. Matthews was going to require that. Mr. Relos responded that that developer wanted his development tied into the river walk and a security fence was required. This development is not asking for tie-in to the river walk and won’t need the Commission to make those improvements. 9 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 Mr. Matthews said that he has asked for some modest improvements to the east bank of the river, a landscaped wall along the west and south line of the east bank. Mr. Downes asked about the cost of improvements required for the west bank. Mr. Relos responded that the cost of improvements are expected to cost $12,000 - $15,000, mainly for cleaning up of trees that have grown up over the years. Ms. King asked if her understanding was correct that Mr. Matthews did not need to have all the condos presold before beginning to build. Mr. Matthews responded that he is promising to build three units for sure, the two he has presold plus a furnished model. The others will be built when commitments are made. He is confident that the quality and price that he offers will command interest fairly quickly for the units along the river. The additional two or three units that won’t have a river view may be harder to sell, but their price will be lower. CM. Upon a motion by Mr. Downes, seconded by OMMISSION ACCEPTED THE PROPOSAL OF R MRR, ATTHEWS FOR THE INK IVERSIDE SITE Mr. Varner and unanimously carried, the APPROVED THE PRELIMINARY SITE PLANS FOR Commission accepted the proposal of Mr. THE PROJECT AND ASKED STAFF TO PREPARE A Matthews for the Rink Riverside site, CSL ONTRACT FOR ALE OF AND approved the preliminary site plans for the project and asked staff to prepare a Contract for Sale of Land. B. Airport Economic Development Area (1) Staff report recommending study of properties to be considered as additions to the Airport Economic Development Area Development Plan Acquisition List. 10 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 Mr. Schalliol noted that on January 15th the Commission gave its approval for staff to begin the statutory process to amend the development plan of the Airport Economic Development Area (“AEDA”) to add properties around Ignition Park to the Acquisition List. As staff has started the study process, additional parcels have been presented to staff for consideration for acquisition related to proposed or existing projects Staff would like to study additional acquisition target areas in the Ignition Park planning area and would request the Commission to authorize the staff to proceed. Area 1: Ivy Tech Planning Area – East Sample Street As the City continues to work with Ivy Tech on its short and long term planning process, both parties continue to explore reuse opportunities for properties along the East Sample Street corridor. Presently, the Enyert Motors building located at 117 E Sample Street is for sale and the two story building might serve the space needs for Ivy Tech in the event other properties are not able to be acquired. The other properties proposed for study are adjacent to the Enyert property and are being proposed for study as part of a smart-plan process. Area 2: Airport Industrial Park, Phase 2 – Maplewood The City of South Bend and the St. Joseph County Airport Authority have been working together to coordinate infrastructure improvements and parcel acquisition in the Airport Industrial Parks 1&2 area southeast of the airport complex. The city has been st approached by 1 Source Bank, owner of one 11 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 of the parcels in the target block between Maplewood and Sheridan, about the bank’s interest in selling its parcel. The Commission presently owns four properties in this block and this is one of four parcels that has yet to be acquired by the city in this area. By acquiring this parcel, the city could close and vacate Maplewood adjacent and north of this property. Staff requests Commission authorization to begin the preparation of plans and maps and related property information, in conformance with State Law, for the two areas highlighted above. Once the information is gathered, staff will present the information to the Commission and then, upon approval of the planning information, will present a declaratory resolution to the Commission to amend the acquisition list for the AEDA. Separate resolutions will also be required to be approved by the Area Plan Commission and the Common Council before a public hearing and approval of a confirming resolution by the Commission. Ms. King asked if there are structures behind the commercial buildings that would run along Ohio Street. Mr. Relos responded that there is a small block garage behind one building. C Upon a motion by Ms. King, seconded by OMMISSION DETERMINED THAT THE AMENDMENT IS REASONABLE AND APPROPRIATE Mr. Downes and unanimously carried, the WHEN CONSIDERED IN RELATION TO THE Commission determined that the amendment ORIGINAL RESOLUTION OR PLAN AND THE is reasonable and appropriate when PURPOSES OF STATE LAW AND THAT THE considered in relation to the original , RESOLUTION OR PLAN WITH THE PROPOSED , resolution or plan and the purposes of state AMENDMENT CONFORMS TO THE ,C COMPREHENSIVE PLAN FOR THE UNIT THE ITY law, and that the resolution or plan, with the SB OF OUTH END AND ORDERED STAFF TO proposed amendment, conforms to the PREPARE MAPS AND PLATS AND ANY OTHER comprehensive plan for the unit, the City of INFORMATION NECESSARY TO CONSIDER South Bend, and ordered staff to prepare ACQUISITION OF THESE PROPERTIES 12 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 maps and plats and any other information necessary to consider acquisition of these properties. (2) Resolution No. 2652 approving and authorizing the execution of an Addendum to the Master Agency Agreement. (Olive Road Right-of-Way Acquisition) Mr. Schalliol noted that Resolution No. 2652 approves an Addendum to the Master Agency Agreement for the Olive Road Right-of-Way Acquisition Project. For the last several years, the City of South Bend has been working with DLZ on design and plans for the remaining Olive Road improvements between Lincoln Way West/US 20 and Nimtz Parkway. The roadway plans are being completed and we are now in a position to begin the process to acquire the necessary right-of-way for improvements to this section of roadway. There are sixteen parcels identified for acquisition. Fifteen of those parcels are on the east side of the road. The city will work to minimize the amount of property to acquire, but there could be as many as four parcels that are needed, depending on the negotiations with the current property owners. As part of its contract with city for design services, DLZ will coordinate and serve as the acquisition agent for this project. The intent is to acquire the property now and hold the property until the city is ready to construct. The property owners understand that this project is in the planning process and wonder what impact it will have for them. Moving ahead with the acquisitions will remove the uncertainty for the owners 13 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 and secure ownership of the right-of-way for when we are ready to do the construction. A full listing of properties, appraised values for the properties and a map are included as Exhibit A to the Addendum to Master Agency Agreement. The total average appraised value for the right-of-way acquisitions is $468,387.50. Staff requests a not-to-exceed budget of $750,000.00. CRN.2652 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AND AUTHORIZING THE EXECUTION Ms. King and unanimously carried, the AMA OF AN DDENDUM TO THE ASTER GENCY Commission approved Resolution No. 2652 A(ORR--W GREEMENT LIVE OAD IGHTOFAY approving and authorizing the execution of A) CQUISITION AND AUTHORIZED A BUDGET FOR an Addendum to the Master Agency $750,000 THE ACQUISITIONS NOT TO EXCEED Agreement (Olive Road Right-of-Way Acquisition) and authorized a budget for the acquisitions not to exceed $750,000. (3) Resolution No. 2653 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Tax Sale Certificate Purchases) Mr. Inks noted that Resolution No. 2653 has been amended to include the properties from Resolution No. 2654 on the agenda as Item 6.B.(4). Resolution No. 2653 addressed properties that were not currently on the Development Plan’s Acquisition Lit. Resolution No. 2654 addressed properties that were already on the Acquisition List. Resolution No. 2653 now contains all the tax sale properties. Item 6.B.(4) will be withdrawn. Mr. Relos noted that on January 15, 2010, the Commission authorized staff to begin the statutory process of adding parcels to the Airport Economic Development Area. During this process, staff has discovered 24 14 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 parcels within this area that are listed for bid at the County Commissioner’s tax sale. In addition to these 24 parcels, there is also one parcel in the South Bend Central Development Area staff feels would be important to acquire for future parking needs, and to facilitate future development opportunities in its block. Staff believes buying these parcels from the tax sale will be much cheaper than through the normal acquisition process at a later date. Since these properties are not yet on the acquisition list, staff is asking for an addendum to the Master Agency Agreement between the Commission and the Board of Public Works, to allow the Board of Public Works to purchase the parcels on the Commission’s behalf. The Commission would then purchase these properties from the Board of Public Works once the Development Plan is amended to allow for their acquisition. Staff is currently researching funding sources for these purchases, and this agreement would move forward only if funding is secured. Staff requests approval of Resolution No. 2653, to allow the Board of Works to register and bid on these properties, with a not to exceed total cost of $250,000. CRN.2653 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O , AS AMENDED APPROVING AND AUTHORIZING Mr. Varner and unanimously carried, the A THE EXECUTION OF AN DDENDUM TO THE Commission approved Resolution No. 2653 MAA(TS ASTER GENCY GREEMENTFORAX ALE as amended, approving and authorizing the CP ERTIFICATE URCHASES execution of an Addendum to the Master Agency Agreement forTax Sale Certificate Purchases (4) Resolution No. 2654 related to acquisition 15 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 of property. (1325 S. Michigan, 1520 S. Taylor, 505 W. Indiana, 1117-1119 Ford and vacant lot on Ford) IN.6.B.(4) Item No. 6.B.(4) was withdrawn. TEM O WAS WITHDRAWN (5) Resolution No. 2656 approving and authorizing the execution of an Addendum to the Master Agency Agreement (South Bend Animal Shelter Project) Ms. Catherine Toppel, Director of Code Enforcement, gave the staff report. Animal Control was created in 1996 under the direction of Code Enforcement and has recently been located at the old fire station on Olive Street in very cramped quarters. Code Enforcement would like to construct a $1.5 million state of the art animal shelter at 521 Eclipse Place. The Eclipse site is currently being used by Code Enforcement for storage of its large equipment and as headquarters for its crew. The new animal shelter would include rehab of the existing building at 521 Eclipse and new construction of seventeen kennels. With the city’s shortage of funds for its budget, it did has not been able to fund the shelter. The Community Animal Rescue Effort (CARE) has held many fund raising events, but has not been able to raise enough either. Code Enforcement is asking the Redevelopment Commission to consider funding the shelter with TIF funds. Ms. Toppel noted that the Olive Street location and the Eclipse location are both in the Airport Economic Development Area. More importantly, Eclipse Place is on the corridor to LaSalle Square. It is a flat roofed facility with a surface parking lot which is in 16 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 disrepair along the newly constructed Bendix Avenue. The plan is to remove the asphalt parking and return it to park land. Rehab of this facility will greatly improve the corridor to LaSalle Square. Mr. Gary Libby, Director of Animal Control, explained the mission of Animal Control. It is opened 365 days of the year, 24 hours a day. They serve citizens with both domestic or wildlife problems. In 2009 they had 4,558 calls for service; 712 of those were after hours. They take in stray and unwanted animals, try to re-house those animals. They return lost pets to their owners. They sponsor the Neuter Scooter servicing over 500 families, neutering over 1,000 animals. Mr. Libby noted that Animal Control’s current shelter is too small, land locked, is right next to an active railroad track, and its two story layout is not accessible to handicapped people or the elderly. The one hundred year old building is structurally deteriorating and is outdated for its use as an animal shelter. Two years ago Mr. Libby looked for an architect to design a new animal shelter. Fort Wayne had just constructed a new shelter and recommended Tom Farney of Grinsfelder Associates. Mr. Farney has been working with South Bend Animal Control on the design of a new facility. Mr. Farney has become skilled in planning animal shelters. Animal shelters are very specialized. If their specialized needs are not addressed up front, it becomes very difficult to make the changes later. Animal shelters are very high maintenance. The correct construction can minimize the staff time 17 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 needed for that. Animals that are sick need to be quarantined. HVAC air circulation needs to address that. Safety issues for staff, the public and the animals all need to be addressed. Mr. Farney said that the new facility will be 9,400 sq. ft. 5,200 sq. ft. is in the existing T- shaped building and 4,200 sq. ft of new runs will be added to it. The renovated building and new portions will save dramatically on heating costs. Mr. Downes noted the high cost per square foot. He asked if it is comparable to the cost for Fort Wayne. Mr. Farney said that it is. Mr. Downes asked if the project will be put out for bid. Ms. Toppel responded that it will be bid by the Board of Public Works. Mr. Downes asked about the future of the current facility on Olive St. Ms. Toppel said it hasn’t been decided, but they will use it for storage for the time being. Mr. Downes wondered if the Commission will be asked to acquire and rehab the Olive Street facility at some time in the future. Mr. Gibney responded that the building belongs to the Park Department. He does not believe the Commission would have further responsibility for it. Ms. Spivey asked if the Olive St. building is on the Federal Registry. Mr. Gibney did not think so. It might be a local landmark. Ms. King asked if the cost of the project if the existing Eclipse Place building was razed. Were the costs of each method compared? Mr. Farney said it would not be cheaper to 18 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 construct an all new building. Renovation is the less costly option here. Ms. King said she is not questioning the need for a new building. She asked how the additional ongoing budget costs will be covered in a building three times the size of the current one. Ms. Toppel responded that they expect the operational costs to be about the same. Staff time will go further with the efficiencies built into the new facility. The energy savings will cover other costs. There may be shifting of funds from one budget line to another. Ms. King asked if this building is the wished- for option, or the realistic option. Ms. Toppel responded that the wished-for option was a $2.3 million facility. Ms. Jones asked if the money for the animal shelter was in the Commission’s TIF budget. Mr. Inks responded that it was. Ms. Spivey asked if the increased efficiency of utilities will offset the other costs. Ms. Toppel said the operating costs at the current facility are $30,000 per year. Based on the average range provided at the Department of Energy Web site, the new building’s utility costs will be about $14,000 per year. Mr. Downes asked if staff is confident this is a legitimate use of TIF funds. Mr. Leone responded that counsel has taken a good look at the law and this is a legitimate use of TIF funds. Mr. Inks also responded, saying that Animal Control is a public facility in a TIF area. It also serves the TIF area. Staff is confident it meets the requirements of the law. 19 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 Mr. Varner commented that his first preference would have been for the city to find some sort of accommodation with the Humane Society. But, it’s been fourteen years since South Bend split from the Humane Society, and that’s not going to happen. It is important to have a facility that is humane and provides the necessary services. Mr. Varner voiced a concern expressed by Councilman Henry Davis: that at some point the investment of $1.5 million may be considered part of the investment committed to LaSalle Square. Mr. Gibney said he understands that this investment does not decrease the city’s commitment to LaSalle Square. However, the Eclipse Place site is three blocks from LaSalle Square, is very blighted, and its renovation will benefit LaSalle Square. CRN.2656 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AND AUTHORIZING THE EXECUTION Mr. Varner and unanimously carried, the AMA OF AN DDENDUM TO THE ASTER GENCY Commission approved Resolution No. 2656 A(SBAS GREEMENT OUTH END NIMAL HELTER approving and authorizing the execution of P) ROJECT an Addendum to the Master Agency Agreement (South Bend Animal Shelter Project) (6) Interlocal Agreement with the South Bend Parks Board and the South Bend Board of Public Works (Animal Shelter Project) CI Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED THE NTERLOCAL ASBP GREEMENT WITH THE OUTH END ARKS Mr. Varner and unanimously carried, the BSBB OARD AND THE OUTH END OARD OF Commission approved the Interlocal PW(ASP) UBLIC ORKS NIMAL HELTER ROJECT Agreement with the South Bend Parks Board and the South Bend Board of Public Works (Animal Shelter Project) (7) Staff report on acquisition of property 20 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 (Habitat Restore, 412 E. Sample Street) Mr. Relos noted that on January 15, 2010, the Commission accepted the Habitat for Humanity counter offer of $345,000 for its property located at 412 E. Sample Street, contingent on getting an outside appraisal on the new location, (the old Kroger store and parking lot at the corner of Main and Ewing) that is close to the value being paid for the Sample Street property. Habitat employed Richard McCloskey, a licensed MAI appraiser used routinely by staff to do commercial appraisals. Because both appraisals totaled nearly 100 pages, attached is the value page from both appraisals. The combined appraised value for both parcels is $328,000, which calculates to a 5% difference between the appraised value and the counter offer price. Because of the close proximity between the appraised value and the counter offer price, staff requests approval to move forward with the acquisition of the Habitat property at 412 E. Sample Street Ms. Jones thanked the staff for spending the extra time to satisfy the Commission’s questions about the acquisition and relocation process. They learned a lot and will be more confident in future negotiations. C Upon a motion by Ms. King, seconded by OMMISSION AGREED THAT THE COUNTER OFFER WAS REASONABLE AND DIRECTED STAFF Mr. Downes and unanimously carried the TO MOVE FORWARD WITH ACQUISITION OF THE Commission agreed that the counter offer H312E.SS ABITAT PROPERTY AT AMPLE TREET was reasonable and directed staff to move forward with acquisition of the Habitat property at 312 E. Sample Street. E. West Washington-Chapin Development Area 21 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 There was no business in the West Washington- Chapin Development Area. F. South Side Development Area There was no business in the South Side Development Area. G. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. H. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. I. Ratification of Services Contracts 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, March 5, 2010 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 11:17 a.m. Donald E. Inks, Director 22 South Bend Redevelopment Commission Regular Meeting –February 19, 2010 23