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Home My WebLink About2. Minutes 03-19-10 MeetingSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING March 19, 2010 10:00 a.ln. 227 West Jefferson Boulevard Presiding: David Varner, Vice-President South Bend, Indiana 1. ROLL CALL Members Present: Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Ms. Stephanie Spivey Members Absent: Ms. Marcia Jones, President 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. David Relos, Economic Development Specialist Others Present: Mr. Jeff Gibney, Executive Director Mr. Tom Price, Mayor"s Office Ms. Rita Kopala GlendaRae Hernandez Ms. Linda Wolfson, Community Forw11 for Economic Dev Mr. Phil Byrd, South Bend Heritage Foundation Ms. Mo Miller, Prism Science Ms. Amber Zebell, Prism Science 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, March 5, 2010. Upon a I110t10I1 by MI'. DOWneS, seconded by Mr. COMMISSION APPROVED THE MINUTES OF THE A1f01'd alld UnamI110US1y CalTled, the COI11I111SSIOn REGULAR MEETING OF FRIDAY, MARCH S, approved the Minutes of the Regular Meeting of ?010 Friday, March 5, 2010. South Bend Redevelopment Commission Regular Meeting -March 19, 2010 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted March 19, 2010 for approval. 305 FUND SBCDA BOND Holladay Construction Group LLC 109, 582.00 324 AIRPORT AEDA Indiana Michigan Power Heppenheimer & Korpal Indiana Michigan Power Crowe Horwath DLZ Abonmarche DLZ Blue Waters Group Wightman Petrie 420 FUND TIF DISTRICT-SBCDA GENERAL Crowe Horwath Rose Pest Solutions Wightman Petrie Phifer Environmental Services, LLC Sopko, Nussbaum, Inabnit &Kaczmarek Ampco System Parking Populous 422 TIF DISTRICT WEST WASHINGTON Crowe Horwath 7.00 501 Wenger St. 7,500.00 30 parcels purchased at tax sale 55.32 420 S Williams St 6,111.51 Tax Increment Financing 26,990.00 Expansion Of Olive & Pine Rd 14,000.00 Mayflower Rd Sanitary Sewer 25,435.00 US 31 /Adam Rd Interchange 26,688.42 Ignition Park 500.00 Waste Management Properties 2,077.36 Tax Increment Financing 93.00 LaSalle Hotel 1,950.00 Schilling's Camera Shop Ph II ESA 9,385.00 Survey 1,012.50 Legal Service 1,221.44 St Joseph St Surface 121 S. St. 5,500.00 Stanley Cov. Stadium Phase 1 (A) 544.37 Tax Increment Financing 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT Crowe Horwath 998.97 Tax Increment Financing 429 NORTHEAST DEVELOPMENT TIF AREA Crowe Horwath 1,387.13 Tax Increment Financing 430 FUND SOUTHSIDE DEVELOPMENT TIF AREA #1 Christopher B. Burke 17,147.50 Crowe Horwath 3,233.86 433 REDEVELOPMENT ADMIN GENERAL Baker & Daniels 2,181.60 May Oberfell Lorber 129.50 Sopko, Nussbaum, Inabnit &Kaczmarek 2,407.50 435 FUND DOUGLAS ROAD TIF Crowe Horwath 88.84 Erskine Detention Pond Relocation Tax Increment Financing Erskine common IDB Bond Legal Services Legal Services Tax Increment Financing $ 266,227.82 South Bend Redevelopment Commission Regular Meeting -March 19, 2010 3. APPROVAL OF CLAIMS (CONT.) Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved the Claims submitted March 19, 2010, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no OId Business. 6. NEW BUSINESS A. South Bend Central Development Area (1) Resolution No. 2661 setting a public hearing on the appropriation of tax increment financing revenues from the South Bend Central Development Area for the payment of certain obligations and expenses related to the South Bend Central Development and other related matters. (Century Center bond principle and interest payment). Mr. Inks noted that Resolution No. 2661 sets a public hearing at 10:00 a.m., April 9, 2010, on Resolution No. 2663. The Commission issued bonds for renovations at Century Center several years ago. The first bond payments are due soon. The Hotel-Motel Tax Board pledged its revenues as the source of repayment. Those funds will come to the Commission which will appropriate them following the public hearing on April 9. COMMISSION APPROVED THE CLAIMS SUBMITTED MARCH 19, 2010, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting -March 19, 2010 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (1) continued... Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously cai-~•ied, the Commission approved Resolution No. 2661 setting a public hearing for 10:00 a.m., April 9, 2010, on the appropriation of tax increment financing revenues from the South Bend Central Development Area for the payment of certain obligations and expenses related to the South Bend Central Development and other related matters. (Century Center bond principle and interest payment) B. Airport Economic Development Area (1) Staff report on outcome of tax sale purchases. Mr. Relos noted that the Commission authorised the Board of Public Works to purchase thirty parcels at the County Commissioner's tax sale for an amount not to exceed $250,000. Mr. Relos was happy to report that all thirty parcels were purchased for just under $42,000. Twenty-four of the parcels are along Indiana Avenue. Those parcels are in the process of being added to the Airport Economic Development Area List of Properties to Be Acquired, estimating the cost of purchase to be $660,000. The total spent to acquire these properties at tax sale was less than $15,000 for a savings of $645,000. (2) Resolution No. 2633 related to acquisition of property in the Airport Economic Development Area. (531 W. Indiana) 4 COMMISSION APPROVED RESOLUTION NO. 2661 SETTING A PUBLIC' HEARING FOR 10:00 A.M.. APRIL 9. 2010, ON THE APPROPRIATION OF TAX INCREMENT FINANCING REVENUES FROM THE SOUTI'I BEND CENTRAL DEVELOPMENT AREA FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THE SOUTH BEND CENTRAL DEVELOPMENT AND OTHER RELATED MATTERS. (CENTURY CENTER BOND PRINCIPLE AND INTEREST PAYMENT STAFF REPORT ON OUTCOME OF TAX SALE PURCHASES South Bend Redevelopment Commission Regular Meeting -March 19, 2010 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (2) continued... Mr. Relos noted that 531 W. Indiana was added to the AEDA List of Properties to be Acquired last fall. It is atwo-story, three bedroom single-family residence. The owner contacted staff with an interest in selling his property. Resolution No. 2633 sets the value of the property at $30,000, the average of two independent appraisals, and authorizes sending a purchase offer in that amount. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carl•ied, the Commission approved Resolution No. 2633 related to acquisition of property in the Airport Economic Development Area. (531 W. Indiana) (3) Resolution No. 2665 authorizing the Director of Redevelopment to approve and execute contracts on behalf of the City of South Bend, L>ldiana, Department of Redevelopment related to the Operation and Maintenance of Blackthorn Golf Course (2010) Mr. Inks noted that in the Commission"s management agreement with Kitson & Partners, they are allowed to enter into contracts on behalf of the Commission where the provision allows for cancelation within thirty days. For contracts that do not have that 30-day cancelation clause, the Commission must approve them. Resolution No. 2665 authorizes the Redevelopment Director, Mr. Inks, to approve those contracts, subject to ratification, similar to COMMISSION APPROVED RESOLUTION NO. 2633 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (531 W. INDIANA) South Bend Redevelopment Commission Regular Meeting -March 19, 2010 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (3) continued... the way the Commission handles professional services contracts. Mr. Varner asked if this authorization could allow staff approval of contracts as large as the bunker renovation. Mr. Inks responded that it could. Staff, as always, works closely with the Controller and the city's Legal Department to ensure all the city's policies are followed. The first contract which would be approved under this authorization will be a lease for two pieces of equipment. We brought those purchases to the Commission last year, but didn't have enough capital funds to purchase everything we wanted to. This year we are doing a lease for a mower and a roller. The combined cost of those two items is about $30,000, spread over a four year lease. Mr. Downes asked if these expected contracts would be in the Blackthorn Golf Course budget. Mr. Inks responded that they would be. Upon a motion by Ms. King, seconded by Mr. Alford and unanimously cai-~•ied, the Commission approved Resolution No. 2665 authorizing the Director of Redevelopment to approve and execute contracts on behalf of the City of South Bend, Indiana, Department of Redevelopment related to the Operation and Maintenance of Blackthorn Golf Course (2010) COMMISSION APPROVED RESOLUTION NO. 2665 AUTHORIZING THE DIRECTOR OF REDEVELOPMENTTO APPROVE AND EXECUTE CONTRACTS ON BEHALF OF THE CITY OF SOUTH BEND, INDIANA, DEPARTMENT OF REDEVELOPMENT RELATED TO THE OPERATION AND MAINTENANCE OF BLACKTHORN GOLF COURSE (2010) 6 South Bend Redevelopment Commission Regular Meeting -March 19, 2010 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (4) Application to Indiana Brownfields Program for a Comfort Letter for property being acquired at 2020 S. Main Street (former EMI, Inc.) Mr. Schalliol noted that the Commission approved a similar Comfort Letter at its March 5 meeting for the Millennium Environmental property. This is for EMI at 2020 S. Main. Both properties were purchased at the tax sale, but the Commission has not taken title. We'd like the Comfort Letter before we take title. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved the Application to Indiana Browntields Program for a Comfort Letter for property being acquired at 2020 S. Main Street (former EMI, Inc.) 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 COMMISSION APPROVED THE APPLICATION TO INDIANA BROWNFIELDS PROGRAM FOR A COMFORT LETTER FOR PROPERTY" BEING ACQUIRED AT 20?O S. MAIN STREET (FORMER EMI. INC.) There was no business in the Northeast Neighborhood Development Area. South Bend Redevelopment Commission Regular Meeting -March 19, 2010 6. NEW BUSINESS (CONT.) F. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. G. Ratification of Crowe Project Assignments Mr. Inks noted that staff believes the Commission will have the ability to repay as much as 100% of the TIF bonds related to Erskine Commons, but because of all the assessment appeals, we've asked Crowe to make sure we are reserving a proper amount of money to safeguard ourselves for future debt service payments on the remaining bond issue that will be outstanding. We don't want appeals that maybe granted to hinder our ability to make the next debt service payment. Mr. Varner asked why the Southside TIF area is in this position, but not the others. Mr. Inks responded that in the Southside TIF we have one large general TIF district and two smaller ones: for Erskine Village and Erskine Commons. It is those smaller TIF areas that have performed at or above the expected level of development. The assessments have been very good there, and tax revenues are significantly higher on both projects than we expected. All the infi•astructure improvements have been made in those TIF areas. So, the only use of those TIF funds is to repay the debt. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission ratified the project assignments with Crowe. H. Other COMMISSION RATIFIED THE PROJECT ASSIGNMENTS WITH CROWE (1) Resolution No. 2662 setting a public hearing on the appropriation of monies South Bend Redevelopment Commission Regular Meeting -March 19, 2010 6. NEW BUSINESS (CONT.) H. Other (1) continued... from the Redevelopment General Fund (Fwd 433) for the purpose of paying for certain expenses incurred by the Redevelopment Commission. Mr. Inks noted that the Commission annually appropriates funds to cover its legal expenses that cannot be paid from the TIF areas. Resolution No. 2662 sets a public hearing for 10:00 a.m., April 9, 2010 on this appropriation. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously cai-~•ied, the Commission approved Resolution No. ?662 setting a public hearing for 10:00 a.m., April 9, 2010,on the appropriation of monies fi-om the Redevelopment General Fund (Fund 433) for the purpose of paying for certain expenses incurred by the Redevelopment Commission. (2) Proposal for professional services. (Legal services related to tax sale purchases) Mr. Relos noted that since successfully bidding on the tax sale certificates, we need to file appropriate paperwork by certain deadlines. The paperwork is lengthy. Mitchell Heppenheimer, attorney for St. Joseph County, has submitted a proposal to do the work for $500 per parcel, including title work, totaling $15,000. Mr. Heppenheimer is very familiar with the tax sale process. Staff recommends accepting the proposal. COMMISSION APPROVED RESOLUTION NO. 266 SETTING A PUBLIC HEARING FOR 10:00 A.M., APRIL 9, 2010,ON THE APPROPRIATION OF MONIES FROM THE REDEVELOPMENT GENERAL FUND (FUND 433) FOR THE PURPOSE OF PAYING FOR CERTAIN EXPENSES INCURRED BY THE REDEVELOPMENT COMMISSION 9 South Bend Redevelopment Commission Regular Meeting -March 19, ?010 6. NEW BUSINESS (CONT.) H. Other (2) continued... Mr. Leone provided some information on how the tax sale process works. About ten years ago the burden used to be on the county to notify all persons who have interest in a parcel. Over the past teu years responsibility and costs for that notification have shifted to the tax certificate buyer. The previous owner has a very detailed process to follow to redeem the property. Mr. Leone noted that title companies still don't like to insure properties that come through this process, even based on a tax deed issued by the court, without going through a quiet title process. If the Commission needs to go through the quiet title process, we may need to hire further services. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission accepted the proposal from Mitchell Heppenheimer for Legal services related to tax sale purchases. 7. PROGRESS REPORTS Mr. Relos noted that the purchaser of SASCO Autoparts is moving them to the Studebaker Business Complex on Chippewa. Ed Fry thought he would have the final truck loaded late March 18, but there were a few more parts that didn't fit in that truckload. Staff got the keys to the building this morning, March 19. It has been an unbelievably efficient move. Staff will check with the Fire Dept. to see if they want us to keep the fire COMMISSION ACCEPTED THE PROPOSAL FROM MITCHELL HEPPENHEIMER FOR LEGAL SERVICES RELATED TO TAX SALE PURCHASES PROGRESS REPORTS 10 South Bend Redevelopment Connnission Regular Meeting -March 19, 2010 7. PROGRESS REPORTS (CONT.) suppression system and security system turned on. We'll have the utilities switched over into the Commission"s name and a telephone line installed. If the Fire Dept. thinks we can leave the fire suppression system and security system turned off, we'd like to do so to reduce holding costs. We're hoping to be ready for demolition around September 1. Mr. Phil Byrd gave a report on the cost of acquisition in the Triangle Area of the Northeast Neighborhood. The boundaries of the Triangle area are north of South Bend Avenue, west of the Housing Authority units, south of the Notre Dame woods and east of Eddy Street. Mr. Byrd noted there were eighty-seven parcels in the Triangle. The Northeast Neighborhood Revitalization Organization (NNRO) has purchased seventy-three of the parcels on behalf of the city. There are fourteen yet to be purchased. Six of those are owned by the Housing Authority. The city should be closed on those within the next two weeks. They will then be demolished. There are two remaining home owners with whom the NNRO is still working to come to an agreement on price. Notre Dame owns the six parcels on the north edge. Mr. Byrd noted that they've spent about $3.4M to pw•chase the seventy-three properties. The Housing Authority purchases will total about $400,000 and the remaining privately owned properties will cost about $1M to purchase and demolish. In addition, the NNRO has about $1.7M for infrastructure. The NNRO has borrowed $1M to supplement TIF funds and city capital budget funds that were available to this project. The NNRO also has $600,000 of HOME funds to assist low and moderate income families to buy the new homes in this mixed income neighborhood. The city received an EDI grant to assist with pw-chase and demolition of properties. After all properties in the Triangle are purchased and demolished, it is anticipated 11 South Bend Redevelopment Commission Regular Meeting -March 19, 2010 7. PROGRESS REPORTS (CONT.) $400,000 of the loan may remain unspent. Mr. Gibney asked the total anticipated cost of predevelopment activities in the Triangle Area. Mr. Byrd responded $6.SM. Mr. Varner said he thought that the Triangle extended to Eddy Street. Mr. Byrd responded that Notre Dame owns the property between Eddy and Georgiana for a later phase of Eddy Street Commons. East of Georgiana is all that is intended for mixed income housing. Mr. Gibney asked what the cost of private investment in the Triangle Area is expected to be. Mr. Byrd responded, depending on the cost of the homes built, $15- l 7M. The homes shou}d sell for $140,000 to $300,000. Mr. Inks noted that the Triangle Area is part of the Northeast Neighborhood Residential TIF area, so increment from that area will be available for debt service on the bonds. There will be no tax abatement for the homes in the Residential TIF area. Mr. Gibney noted that Architecture Design Group has already designed the ten to twelve house plans that people can choose from to be constructed in the Triangle. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Friday, April 9, 20 } 0 at 10:00 a.m. 12 South Bend Redevelopment Commission Regular Meeting -March 19, 2010 9. ADJOURNMENT There being no further business to come before the A~~ouRNMeNT Redevelopment Commission, the meeting was adjourned at 10:33 a.m. Donald E. Inks, Director 13