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Home My WebLink About05-07-10 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING May 7, 2010 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Greg Downes Ms. Stephanie Spivey Members Absent: Ms. Marcia Jones, President Mr. Donald Alford Legal Counsel: Mr. Charles S. Leone, Esq. Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs. Jenny Hullinger, Recording Secretary Mr. Robert Mathia, Economic Development Specialist Mr. David Relos, Economic Development Specialist Others Present: Mr. Tom Price, Mayor’s Office Ms. Rita Kopala Ms. Linda Wolfson, Community Forum for Economic Dev Mr. Patrick Strickler, Blue Waters Group Ms. Heather Short-Davis, Blue Waters Group Ms. GlendaRae Hernandez Mr. Nevin Siqueira Mr. Mark Seaman, Prism Science 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, April 23, 2010. CM Upon a motion by Mr. Downes, seconded by Ms. OMMISSION APPROVED THE INUTES OF THE RMF,A23, EGULAR EETING OF RIDAY PRIL King and unanimously carried, the Commission 2010 approved the Minutes of the Regular Meeting of Friday, April 23, 2010. South Bend Redevelopment Commission Regular Meeting –May 7, 2010 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted May 7, 2010 for approval. 324 AIRPORT AEDA DHA 850.00 RC Boundary Survey 525 W Indiana DHA 850.00 Boundary Survey 1508 S Taylor St. Joseph County Treasurer 21,232.75 Property Taxes Architecture Design Group 3,780.00 Ivy Teach Façade Renovation & Demolition Project 420 FUND TIF DISTRICT-SBCDA GENERAL Indiana Michigan Power 748.33 237 N Michigan 422 TIF DISTRICT WEST WASHINGTON Crab,Lilac,Horse Ches FMR/Maple St. Windmill Acres, Inc 6,450.00 LaSalle/William/Main Landscaping Williams/LaSalle/ Department of Public Parks 4,799.00 Jefferson/Main Hathaway 2, Inc. Ignition Pk 24,405.00 Total $ 63,115.08 CC Upon a motion by Ms. King, seconded by Mr. Downes OMMISSION APPROVED THE LAIMS M7,2010, SUBMITTED AY AND ORDERED THE and unanimously carried, the Commission approved the CHECKS TO BE RELEASED Claims submitted May 7, 2010, and ordered checks to be released. 4. COMMUNICATIONS CKS Mr. Inks noted that the Commission received one OMMUNICATION FROM ATHY HUPE communication from Kathy Shupe. She complimented the Commission on its planting of trees on vacant lots in the downtown being held for development. She thought that was a great idea. 5. OLD BUSINESS TOB There was no Old Business. HERE WAS NO LD USINESS 2 South Bend Redevelopment Commission Regular Meeting –May 7, 2010 6. NEW BUSINESS A. Tax Abatements (1) Resolution No. 2674 approving an application for personal property tax deduction for property located at 2629 Foundation Drive in the Airport Economic Development Area. (Value Production, Inc.) Mr. Mathia gave the staff report on the project. Value Production is a modern production machining facility. They provide one-stop shopping for design, prototypes, and production, and it is an ISO 9001:2000 certified company. Value Production was established in October of 2000. The company manufactures products for use in the aerospace, automotive, medical, and commercial markets. The company will purchase a new, Swiss lathe, 2 Mazak horizontal machining centers and a pallet control center for their custom manufacturing needs. The project will invest $1,500,000 in this new equipment. Total taxes to be abated during the (5) five-year abatement period are estimated at $41,882. Total taxes to be paid during the (5) five-year abatement period are estimated at $124,606. Mr. Mathia noted that the project is expected to create four new, permanent, full-time jobs in the first year of production representing a new annual payroll of $120,000. The project will also maintain twenty-three existing, permanent, full-time jobs and one existing part-time job representing an annual payroll of $1,000,000. Value Production has been granted four previous personal property tax abatements 3 South Bend Redevelopment Commission Regular Meeting –May 7, 2010 6. NEW BUSINESS (CONT.) A. Tax Abatement (1) continued… since 2007. The property is properly zoned for the proposed use. The property is located in the Airport Economic Development Area, which is a Tax Increment Allocation Area; therefore, the petition for personal property tax deduction must first be approved by the South Bend Redevelopment Commission. The property qualifies for five years of personal property tax deduction under the Tax Abatement Ordinance. CRN.2674 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AN APPLICATION FOR PERSONAL Ms. King and unanimously carried, the PROPERTY TAX DEDUCTION FOR PROPERTY Commission approved Resolution No. 2674 2629FD LOCATED AT OUNDATION RIVE IN THE approving an application for personal AEDA. IRPORT CONOMIC EVELOPMENT REA property tax deduction for property located at (VP,I.) ALUE RODUCTION NC 2629 Foundation Drive in the Airport Economic Development Area. (Value Production, Inc.) B. South Bend Central Development Area (1) Resolution No. 2673 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Bid Specifications for Demolitions and Street and Parking Upgrades) Mr. Relos noted that staff requests the Board of Public Works to prepare demolition specifications for two houses it purchased along Indiana Avenue which are now vacant. The Addendum to Agency Agreement attached to Resolution No. 2673 also covers design specifications for some downtown projects: 4 South Bend Redevelopment Commission Regular Meeting –May 7, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued… Jefferson/Main - Remove the curb cut SW corner, repave and strip adjacent parking lot, remove large concrete barriers, new lighting, miscellaneous landscaping and cleanup. Combine city-owned and WNIT-owned parking lots west of WNIT . Remove various curb cuts, new sidewalks, tree lawns there as well as on Franklin between Washington and Jefferson and the west side of William south of LaSalle. Mr. Relos noted that getting specifications drawn up will enable staff to get bids on the work, after which we will come back to the Commission for authorization to have the work done. CRN.2673 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. 2673 A(BS GREEMENT ID PECIFICATIONS FOR approving and authorizing the execution of DSP EMOLITIONS AND TREET AND ARKING an Addendum to the Master Agency U) PGRADES Agreement (Bid Specifications for Demolitions and Street and Parking Upgrades) C. Airport Economic Development Area (1) Staff report on 250 E. Sample Street. (Ivy Tech on Sample Street building) S250E.SS(I Mr. Relos noted that the Board of Public TAFF REPORT ON AMPLE TREET VY TSSB) ECH ON AMPLE TREET UILDING Works opened and awarded the bid for the Ivy Tech on Sample Street façade work. That building at 250 E. Sample houses 5 South Bend Redevelopment Commission Regular Meeting –May 7, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued… administrative offices and classrooms. It currently is clad in white and blue sheet metal. ADG did the design for the new façade. The Board of Public Works received nine bids for the project. Ziolkowski Construction was awarded the project with a bid of $169,000. Work will begin on May 10 with an estimated completion date of July 10. Based on an earlier estimate, we had budgeted $270,000 for this project. (2) Staff report on 701 Pennsylvania Avenue (Wenger Homestead) Mr. Vitton noted that the Wenger Homestead was designated a local historic landmark by the St. Joseph County / City of South Bend Historic Preservation Commission in 1979, a State of Indiana landmark in 1997, and a National Historic Register landmark in 2000. The Commission acquired the distressed property as part of the Southeast Neighborhood redevelopment efforts in the 1990’s. As part of that effort many homes and vacant lots in the surrounding area were redeveloped as new homes. Due to the Wenger Homestead’s historic status, that property was not demolished to make way for new development. Instead, about ten years ago, the Commission completed limited repairs to the property to make it marketable for rehabilitation by a private party. Repairs conducted included a significant restoration of its entablature, dentil work, architrave molding, and large and paired scroll bracket supports. There has 6 South Bend Redevelopment Commission Regular Meeting –May 7, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) continued… also been a re-working of the building's original arched windows and fieldstone foundation. Additional exterior improvements include the installation of a new roof, gutters, siding, and front porch. New heating, plumbing and electrical services have also been installed. The house interior is clean with wood floors throughout, and is ready for a complete interior rehabilitation. But the Commission’s investment in the property is deteriorating. The Commission marketed the property for some time through a specialty website targeting purchasers interested in historic properties (historicproperties.com). Then it was marketed through the City of South Bend’s Dollar Home Program. Most recently, in December 2009 the home was featured on This Old House’s website, which yielded over 60 responses from interested parties. Staff prepared and provided a Request for Proposal to the interested parties. One proposal was received by the established deadline. Staff reviewed the proposal of John Morris and requested supplemental information such as photos of past work and letters of reference. Staff concluded that Mr. Morris is capable of executing the needed repairs to the home. Mr. Morris plans to live in the home (committing to no less than three years) and has a number of years of experience in home remodeling. Mr. Morris formerly owned Morris Construction of Delaware. Letters of 7 South Bend Redevelopment Commission Regular Meeting –May 7, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) continued… reference provided to staff from former clients spoke highly of his craftsmanship. Moreover, since Mr. Morris already has the necessary tools, fixtures, and experience to conduct the repair work so the cost will be relatively low for Mr. Morris. Morris has worked in the residential construction field for over 25 years, and plans to bring his 24 foot “mobile woodworking shop” to South Bend to take on the task of rehabilitating the property. He also showed a great deal of enthusiasm regarding this opportunity, taking the time to contact the Historic Preservation Commission to find out more about the structure’s history. Morris also plans to conduct the repairs in an environmentally friendly manner. Per Mr. Morris’s proposal, he would like to begin working on the property this summer and complete the rehabilitation in November of 2011. Staff requests the Commission approve the proposal from Mr. Morris to purchase this property for One Dollar. Staff also requests permission to proceed with drafting a Purchase Agreement, including an affidavit from Mr. Morris that he has sufficient resources to complete the renovation. Mr. Varner asked whether the property’s historic status prevents it from being moved to another location. Mr. Meteiver responded that it could be relocated. C701 Upon a motion by Ms. King, seconded by OMMISSION APPROVED THE SALE OF PAM.JM ENNSYLVANIA VENUE TO R OHN ORRIS Mr. Downes and unanimously carried, the FOR A PRICE OF ONE DOLLAR AND AUTHORIZED 8 South Bend Redevelopment Commission Regular Meeting –May 7, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) continued… PA Commission approved the sale of 701 STAFF TO PREPARE A URCHASE GREEMENT .(WH) FOR THAT SALE ENGER OMESTEAD Pennsylvania Avenue to Mr. John Morris for a price of one dollar and authorized staff to prepare a Purchase Agreement for that sale. (Wenger Homestead) (3) Contract with Blue Waters Group for Phase III Services Mr. Price noted that noted that Blue Waters Group gave a progress report on Phase II of its contract with the Commission. The progress included measurable increased public awareness and greater communication resources for city staff. Staff is now requesting approval of a contract with Blue Waters Group for a third phase of work. The contract would begin June 1, 2010 and extend through January 31, 2011. The contract would be for an amount not to exceed $430,000, bringing the three year total the $1,200,000 anticipated in fall 2008. The primary communications objectives are: ? Build local awareness of, and participation in, tech transformation in South Bend. ? Build, state and national awareness of tech transformation in South Bend ? Engage media ? Build local identity of Ignition Park ? Increase communication about economic development activity in South Bend ? Provide business-friendly resources and activities ? Create capacity to respond to emerging opportunities and new development strategies 9 South Bend Redevelopment Commission Regular Meeting –May 7, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued… Activities will be divided over three areas: 1.Continuation of existing efforts at existing funding levels: Ongoing billboard advertising, updates to IgnitionPark.com, public-affairs management and measurements to evaluate progress. 2.Enhancing existing efforts: Increase frequency and circulation of South Bend ON e-newsletter, create additional support materials targeted at key audiences. 3.New efforts: Increase engagement with statewide business media as well as local companies and opinion leaders; collaborate in community partnerships to communicate about economic opportunity through tech transfer. Mr. Price noted that the Commission is awaiting a business plan from Hathaway2, Inc. There are also some conversations with Notre Dame, being led by Project Future, about how to commercialize some of the research priorities coming out of Notre Dame. This contract will allow us to respond nimbly to the outcomes of these discussions. Mr. Varner asked whether there are any specific outcomes staff is looking for from Phase III. Mr. Price responded that we want people to have a deeper understanding of what the opportunities are and what is really happening. We plan to create ambassadors in the community who are well informed about this project and can talk one-on-one with people about developing opportunities. 10 South Bend Redevelopment Commission Regular Meeting –May 7, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued… Ms. King asked if there will be any focus outside of the community, in areas where there may be potential users for Ignition Park. Mr. Price responded that there will be. First, we’re looking at Indiana and regional business media. A lot of those efforts will grow out of objectives in the business plan or the commercialization efforts. We’ve been hesitant to do a national advertising campaign until we have clear business objectives. Mr. Downes asked what the timeline is for Hathaway2 to complete the business plan. Mr. Inks responded that a business plan is expected near the end of 2010. Ms. Hathaway has been doing a lot of research, but she is not to the point of pulling that together into a plan yet. Mr. Downes asked again for a progress report from Hathatway2. Mr. Inks said a staff report would be on the May 21 agenda. Mr. Downes said he read recently that Notre Dame licensed some developing medical technology to a company from Pennsylvania. When something like that happens, do we make sure those companies know that there are opportunities in South Bend for growth and development of that new technology? Do we follow up on that sort of thing? Mr. Price responded that we have not followed up on those kinds of leads yet, but thought it was a good idea. To this point 11 South Bend Redevelopment Commission Regular Meeting –May 7, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued… this contract with Blue Waters Group is for communications and marketing planning. Hathaway2 is creating specific business objectives. Everyone is waiting for the business plan. Communications objectives grow directly out of the business plan. Mr. Varner asked who would be responsible for doing those kinds of follow-ups? If we don’t have an answer for that question, we have a problem. Mr. Price said it would most likely fall under Hathaway2’s responsibility as the director of Ignition Park. When we get inquiries through the Web site, they go directly to Geri Hathaway. Mr. Varner asked that Ms. Hathaway’s presentation include information about the contacts made resulting from Web inquiries. Mr. Downes asked if the Commission does not have a completed business plan until the end of 2010, does that inhibit Blue Waters Group from completing Phase III. Mr. Strickler said that it does, somewhat. Mr. Strickler responded to Mr. Varner’s question about what outcomes are expected from Phase III. Mr. Strickler said Blue Waters Group is interested in seeing that its communications work stimulates calls and interest and calls from private sector investors who want to do business in South Bend. It’s not Blue Waters’ job to do that, but he frequently runs into developers who know about and are interested in what is 12 South Bend Redevelopment Commission Regular Meeting –May 7, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued… happening in South Bend. Mr. Strickler always forwards that interest to a contact in the city. The word is getting out. He’s not waiting for the business plan. Ms. King said she believes Blue Waters Group, Hathaway2, the city and Project Future need to work on coordination. Mr. Strickler agreed. Without coordination, things fall through the cracks. Mr. Downes said he does not think the Commission can wait seven months for a business plan. Mr. Price said that Notre Dame, Blue Waters Group, Innovation Park, Project Future, the Chamber of Commerce and the city have tried to work on coordination. Everyone feels they need to know what Notre Dame’s research priorities are going to be. That is still undecided. From the city’s perspective, we need to do something now, though we don’t have all the answers. Mr. Strickler said Blue Waters Group would like to use the Commission’s money in Phase III to stimulate as much interest as it can in investing private sector dollars in South Bend. Mr. Varner was concerned that there isn’t a clear sense of responsibility for pursuing these leads. He doesn’t want to leave it to Project Future because they represent more than South Bend. He wants to see someone 13 South Bend Redevelopment Commission Regular Meeting –May 7, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued… assigned to that follow-up whose interest is specifically South Bend. Mr. Downes questioned the use of the terminology that Geri Hathaway was the Director of Ignition Park. Mr. Strickler responded that Hathaway2 only has a contractual relationship with the city and a one year contract, but in order to give her a platform from which to make contacts, she uses the title Director of Ignition Park. CC Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED THE ONTRACT WITH BWGPIIIS LUE ATERS ROUP FOR HASE ERVICES Ms. King and unanimously carried, the Commission approved the Contract with Blue Waters Group for Phase III Services. (4) Resolution No. 2673 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Bid Specifications for Demolitions and Street and Parking Upgrades) Mr. Inks noted that this item was approved under Item 6.B.(1). D. West Washington-Chapin Development Area 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. 14 South Bend Redevelopment Commission Regular Meeting –May 7, 2010 6. NEW BUSINESS (CONT.) 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. 7. PROGRESS REPORTS PR Mr. Inks reported on the use of remaining Section 108 ROGRESS EPORTS funds for work in Studebaker Corridor. There are about $682,000 in outstanding contracts that will be paid for from TIF funds instead of using Section 108 loan funds. In addition, there is about $1.1M of other project costs not yet obligated, but that need to be funded. TIF funds will be used to fund those projects also. Those costs are in addition to the budgeted costs for TIF for 2010, including the demolition of Underground Pipe and Valve. Mr. Inks also reported that staff expects the city to receive at least its spring installment of the pay 2010 property taxes on time this year. Those are funds that were not counted on in the budget because they had not been received on time the last three years. That should be about $4M- $5M of additional revenue in the Airport Economic Development Area TIF. Therefore, there should be ample TIF funds to pay for the $1.8M of expenses being picked up from the Section 108 Loan Studebaker Corridor projects. Mr. Varner asked the status of the children’s dispensary at Hansel Center. Mr. Relos responded that Notre Dame is still hammering out the Memorandum of Understanding with the Commission, the benefactor from California, etc. They are also still trying to complete their fundraising. It is going more slowly than hoped. 15 South Bend Redevelopment Commission Regular Meeting –May 7, 2010 7. PROGRESS REPORTS (CONT.) Mr. Inks also reported that Blackthorn Golf Course was planning to lease a mower and another piece of equipment. The staff there are having trouble finding a leasing vendor who could comply with the city’s leasing policy that prohibits fees for late payments. A suggested solution is that the Commission loan $30,000 to the golf course to purchase the badly needed equipment. Repayment would be from the golf course’s operating revenue over three to five years. There are two additional items that the golf course needs to lease that have not been approved in the budget: a van for $20,000 and a new cart fleet for about $240,000. Commissioners asked how the carts were leased before. Mr. Leone explained that it is a Board of Public Works policy that city contracts cannot contain language to pay a penalty for late payments. Mr. Leone said that the policy results from potential personal liability for certain kinds of penalties and interest by those who are either administering or approving under certain conditions. We are trying to protect the golf course from having that situation occur. Ms. King asked if the Commission could opt out of that policy. Mr. Leone said it would be a question of risk. In order to adhere to the business practices that these lessors have in place industry wide, are we willing to increase the risk to those folks that are involved in the administration of these particular leases? Mr. Downes asked if using the $300,000 for the golf course will get in the way of some other project we want to do in the Airport Economic Development Area. Mr. Inks did not feel it would. C Upon a motion by Mr. Downes, seconded by Ms. King OMMISSION APPROVED A LOAN TO BGC LACKTHORN OLF OURSE FOR MOWING and unanimously carried, the Commission approved a EQUIPMENT IN AN AMOUNT NOT TO EXCEED loan to Blackthorn Golf Course for mowing equipment $35,000, SUBJECT TO LEGAL APPROVAL in an amount not to exceed $35,000, subject to legal approval. 16 South Bend Redevelopment Commission Regular Meeting –May 7, 2010 8. NEXT COMMISSION MEETING NCM The next meeting of the Redevelopment Commission is EXT OMMISSION EETING scheduled for Friday, May 21, 2010 at 10:00 a.m. 9. ADJOURNMENT A There being no further business to come before the DJOURNMENT Redevelopment Commission, Ms. King made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 10:50 a.m. 17