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HomeMy WebLinkAbout2. Minutes 6/18/10SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING June 18, 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. 1VIr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. David Relos, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mr. Tom Price, Mayor's Office Mr. Beth Leonard, Comm &Econ Dev. Mr. John March, Comm &Econ Dev. Ms. Rita Kopala Ms. Linda Wolfson, Community Forum for Economic Dev Mr. Mark Seaman, Prism Science Ms. GlendaRae Hernandez 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, June 4, 2010. Upon a motion by Mr. Downes, seconded by Mr. CoMMissiorr rrrxovEn TxE Mirru~rES of TxE Alford and unanimously carried, the Commission REGULAR MEETING of FRIDAY, 7urrE 4, 2010 approved the Minutes of the Regular Meeting of Friday, June 4, 2010. South Bend Redevelopment Commission Regular Meeting -June 18, 2010 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted June 18, 2010 for approval. 324 AIRPORT AEDA Jerome E. Michaels, MAI 4,875.00 1313 Prairie Ave /Hells Angels Bldg Meridian Title 5,000.00 Michaels Appraisal Service 2,325.00 R.E. McCloskey & Associates 3,500.00 725 W Indiana Ave, Barany Sheet Metal Elizabeth Inks -for IKEA 1,479.00 Innovation Pk ND Sopko, Nussbaum, Inabnit &Kaczmarek 1,237.50 Legal Srvc David Waszak appraisals, Inc 2,400.00 801-807 W Indiana Ave (Hells Angels Realty) Blue Waters Group Inc 12,610.00 Ignition Pk Hathaway 2, Ina 4,505.00 Ignition Park Abonmarche 6,000.00 Mayflower Rd Sanitary Sewer WITT Appraisal Services, Inc 1,200.00 1511 S Kemble Ziolkowski Construction 24,951.60 ITOSS Building Fagade Renovation David Waszak Appraisals, Inc 7,200.00 E. Sample Abonmarche 3,140.00 Jefferson Blvd & Nile Ave Streetscape Marianne Ciesielski 95,617.00 Olive Rd/U.S. 20 Reconstruction Arnold & Sally Dorey 497.00 DNA 5,605.00 Preparation of Oliver Trail System along Oliver Plow Ct/Chapin 420 FUND TIF DISTRICT-SBCDA GENERAL DTSB 50,125.00 Downtown Beautification Program CB Richard Ellis/Bradley 635.45 LaSalle Hotel Indiana Michigan Power 139.72 237 N Michigan St. Midland Engineering Co Inc 104,637.00 Coveleski Stadium Improvements Wightman Petrie 27,230.20 Coveleski Stadium Block South Bend Tribune 1.19.64 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT Sopko, Nussbaum, Inabnit &Kaczmarek 787.50 Legal Srvc DLZ 146,500.00 S Michigan St S Curve SBC Reprographics 288.90 SBC Reprographics 714.52 Memorial Hospital Streetscape 433 REDEVELOPMENT ADMIN GENERAL Sopko, Nussbaum, Inabnit &Kaczmarek 4,308.75 $ 517,628.78 2 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 3. APPROVAL OF CLAIMS (CONT.) Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Claims submitted June 18, 2010, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS A. Airport Economic Development Area (1) Resolution No. 2689 accepting the transfer of real property from St. Joseph County, Indiana. (Millennium Environmental, 604 S. Scott Street and EMI, Inc., 2020 S. Main Street) Mr. Inks asked that this item be tabled. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission tabled Item S.A.(1) 6. NEW BUSINESS A. South Bend Central Development Area (1) First Amendment to Vine Restaurant Lease. Mr. Meteiver noted that The Vine leases the lower level of the Palais Royale. The Commission entered into an agreement with the Morns Performing Arts Center that the rent collected goes to the Morns which maintains the property. The Vine Restaurant wishes to continue in business where it is. The First Amendment extends the Lease to COMMISSION APPROVED THE CLAIMS SUBMITTED JUNE 18, 2010, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS COMMISSION TABLED ITEM S.A.(1) 3 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 July 1, 2011 with the following changes: An increase of $175.83 per month rent A monthly decrease in the CAM fee $193.86. Two items drastically lowered CAM: 1. A renegotiated contract for refuse collection that was very positive for us and; 2. The re-lamping of the exterior of the building with energy conserving long life lamps. The net change in The Vine's monthly payment is a decrease of $18.03. Upon a motion by Ms. King, seconded by Mr. Alford and unanimously carried, the Commission approved the First Amendment to Vine Restaurant Lease. (2) Proposal for professional services in the South Bend Central Development Area. Mr. Schalliol noted that the Commission has used the Buxton Company to do several retail studies for the city in recent years. We would like two of those studies to be updated: the Community ID first completed in 2006, and a 2-minute drive time analysis to better understand the difference between the daytime downtown population and the night time population. The second part of the scope of services would be a grocery store saturation study, citywide. The fee for the scope of services is $45,000. Staff requests approval of snot-to-exceed amount of $54,000 in case staff feels the need to do up to three site specific studies. Mr. Schalliol noted that the update will be useful to the new downtown recruitment COMMISSION APPROVED THE FIRST AMENDMENT TO VINE RESTAURANT LEASE 4 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 person, Tamara Nicholl-Smith. Mr. Schalliol noted that in 2006 Buxton's report was a hard copy in a large binder. Over the last several years Buxton has begun to use a web based interface for its data management, called Scout. They have offered one year free trial of that program. The program would not only be a tool for the city to manage the new Buxton data, but Scout could be shared with interested commercial prospects as well as existing businesses in the city. If we want extended use of Scout, the cost would be $12,000 per year. Mr. Downes asked for an explanation of the "marketing package for individual grocers" component. Mr. Schalliol responded that after Buxton has identified either a specific store, or a type of store for an area, they can develop targeted marketing materials appropriate to store. Mr. Varner asked if the web site will track how much use it gets. Mr. Schalliol said it would. We will be able to see how valuable it is to us. Ms. Jones asked how much the original study cost. Mr. Schalliol responded that it cost $60,000. Ms. Jones asked if the current proposal is just a refresh of the earlier one, or has more been added. She thought the $45,000 seemed high for a refresh. Ms. Schalliol said that the refresh portion would be only about $10,000. Mr. Inks noted that on June 17 he attended a retail roundtable for the downtown that was attended by several of the merchants along South Bend Redevelopment Commission Regular Meeting -June 18, 2010 Michigan Street between Jefferson and Washington. CB Richard and LaSalle Grill were there, as well as Tamara Nicholl-Smith.. The existing report was provided to invitees. Those businesses were looking forward to the updated study and the web interface to increase their access to information. Ms. Spivey asked if the study will include demographics. Mr. Schalliol said that it would, as well as what they call "psychographics." What kinds of things each person purchases with credit card, etc. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission accepted the proposal from the Buxton- Company for the scope of services proposed and a not to exceed amount of $54,000. B. Airport Economic Development Area (1) Proposal for professional services to appraise 1008 W. Sample Street. Mr. Relos noted that 1008 W. Sample Street was added to the Airport Economic Development Area Acquisition List on May 21, 2010. It is a 155,000 sq. ft. building on 3.35 acres. The current owner is buying it on land contract. He is interested in selling to the Commission. Before we can enter into any negotiations, we need to have appraisals done to establish a price for the purchase offer. The property contains six large brick buildings, four of which are three stories tall. The parcels making up the site are irregularly shaped. Because of the difficulty in appraising it, the proposals have come in COMMISSION ACCEPTED THE PROPOSAL FROM THE BUXTON COMPANY FOR THE SCOPE OF SERVICES PROPOSED AND A NOT TO EXCEED AMOUNT OF $54,000 6 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 higher than the Commission's standard limits. Mr. Relos noted that the first time he requested proposals he only received one and it was for $13,000. He went out again for proposals and received these two. Staff requests permission to hire David Waszak Appraisals for a fee of $7,900 and Jerome E. Michaels for a fee of $6,900. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission accepted the proposals from David Waszak and Jerome Michaels for the scope of services and fee proposed. (2) Resolution No. 2695 related to acquisition of property in the Airport Economic Development Area (1501 S. Taylor) Mr. Relos noted that 1501 S. Taylor was added to the Airport Economic Development Area Acquisition List on May 21, 2010 with the intention to clear the southern boundary of Ignition Park and to help stabilize the Rum Village neighborhood to the south. The Rum Village~Neighborhood Association strongly supports the redevelopment of this area on the north side of Indiana Ave. 1501- Taylor is atwo-story, three bedroom single family residence. The owner contacted staff with an interest in selling. Resolution No. 2695 sets the offering price at $31,000, the average of two independent appraisals. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2695 related to acquisition of property in the Airport Economic Development Area (1501 S. Taylor) COMMISSION ACCEPTED THE PROPOSALS FROM DAVID WASZAK AND JEROME MICHAELS FOR THE SCOPE OF SERVICES AND FEE PROPOSED COMMISSION APPROVED RESOLUTION NO.2695 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (1501 S. TAYLOR) 7 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 (3) Resolution N. 2696 related to acquisition of property in the Airport Economic Development Area (1510 S. Catalpa St.) Mr. Relos noted that 1510 S. Catalpa Street was added to the Airport Economic Development Area Acquisition List on May 21, 2010 with the intention to clear the southern boundary of Ignition Park and to help stabilize the Rum Village neighborhood to the south. The Rum Village Neighborhood Association strongly supports the redevelopment of this area on the north side of Indiana Ave. 1510 S. Catalpa is atwo-story, three bedroom single family residence. The owner contacted staff with an interest in selling. Resolution No. 2696 sets the offering price at $11,500, the average of two independent appraisals. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution N. 2696 related to acquisition of property in the Airport Economic Development Area (1510 S. Catalpa St.) (4) Resolution No. 2697 approving and accepting a counter offer for the acquisition of property in the Airport Economic Development Area (1510 S. Catalpa St.) Mr. Relos noted that the owner of 1510 S. Catalpa submitted a counter offer in the amount of $15,000. Staff recommends accepting the counter offer. Upon a motion by Ms. King, seconded by COMMISSION APPROVED RESOLUTION N. 2696 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (1510 S. CATALPA ST.) COMMISSION APPROVED RESOLUTION NO. 2697 APPROVING AND ACCEPTING A COUNTER OFFER 8 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 Mr. Downes and unanimously carried, the nr TxE aNroulvT of $15,000 Fox rxorExTY Commission approved Resolution No. 2697 LocaTED AT 1510 S. CATALPA S'r. approving and accepting a counter offer in the amount of $15,000 for property located at 1510 S. Catalpa St. (5) Public Hearing and consideration of Resolution No. 2690 determining to appropriate monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2010, and ending December 31, 2010, including all outstanding claims and obligations, fixing a time when the same shall take effect. Ms. Leonard noted that Resolution No. 2690 appropriates an additional $10,000 for Blackthorn Golf Course. The reason we are requesting this is that we need to add a line item to the budget that would allow for late fees. We don't intend to spend anything for late fees, but if we don't have that line item, we can't enter into certain kinds of agreements that require us to pay a late fee if we would be late. Mr. Inks noted that the public hearing file is complete, containing a copy of Resolution No. 2690, a copy of the Notice of Hearing, and affidavits from the Tri-County News and South Bend Tribune that the Notice of Hearing was published in those newspapers on May 28, 2010. Ms. Jones opened the public hearing for anyone who wished to speak regarding Resolution No. 2690. There was no one who wished to speak. Ms. Jones closed the public hearing for whatever action the Commission wished to take. 9 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 Upon a motion by Mr. Downes, seconded. by Ms. King and unanimously carried, the Commission approved Resolution No. 2690 determining to appropriate monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2010, and ending December 31, 2010, including all outstanding claims and obligations, fixing a time when the same shall take effect. (6) Resolution No. 2698 approving an Addendum to the Master Agency Agreement (Phase II Environmental Site Assessment at Oliver Industrial Park) Ms. Kolata noted that the Redevelopment Commission entered the Indiana Voluntary Remediation Program a number of years ago. We are trying to undertake a number of activities to wrap up our participation in that program. Resolution No. 2698 adds to the Master Agency Agreement a project which would include $76,230 for site assessment in very specific areas in the Oliver Industrial Park on the portion the Commission still owns. There are a couple of areas where we want to do some additional testing. Once we get the report back on this testing, the next part of this same contract is the preparation of a work plan to the Voluntary Remediation Program that outlines the current conditions and how we're going to address them. We have promised IDEM that work plan by the end of July. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2698 approving an Addendum to the Master Agency Agreement (Phase II Environmental COMMISSION APPROVED RESOLUTION NO. 2690 DETERMINING TO APPROPRIATE MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING 7ANUARY 1, 2010, AND ENDING DECEMBER 31, 2010, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT COMMISSION APPROVED RESOLUTION NO. 2698 APPROVING AN ADDENDUM TO THE MASTER AGENCY AGREEMENT (PHASE II ENVIRONMENTAL SITE ASSESSMENT AT OLIVER INDUSTRIAL PARK 10 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 Site Assessment at Oliver Industrial Park) (7) Resolution No. 2687 approving an Addendum to the Master Agency Agreement (Trade Drive Project) Mr. Schalliol noted that the over the last several years, the City of South Bend has been working with various agencies within the county government concerning its consolidation of the Community Corrections services, currently provided at three residential style work release centers scattered throughout the city. At the present time there are approximately 20 beds but the consolidation into a new facility would allow for a minimum 110-bed model to be developed at a single location on Lathrop Street. Additional program space shall include space for Community Corrections administration, support space and state parole operations. The proposed facility would include approximately 14,000 sf with land area and building design capability to expand as needed. The role of the city in this project is to be involved with road construction, utility extension and drainage coordination. The proposal attached to the addendum as Exhibit A details the four stage project plan (Programming, Master Plan, Schematic Design, Final Design) related to the development and construction of this project. The Programming element will study current utility locations, grade elevations of the proposed area, and property information and related conditions. The Master Plan will develop the plan for the regional storm water system, the utility loop plans, and the road plans for the proposed 600' road plan as well as the 1700' road plan extension. The 11 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 Schematic Design stage will do all of the schematic design and testing. The Final Plan stage will develop the complete set of construction plans for all aspects of the project. The fee for this proposal is $119,100. The estimated construction project totals $678,000 with $560,000 for road construction, $60,000 for sanitary sewer construction, and $58,000 for water construction. Ms. King asked if we bid out our professional service contracts. Mr. Schalliol responded that we did not in this case. The county selected DLZ to do the building construction plan. We got involved to do the roadway and utilities. It seemed prudent to also use DLZ. Ms. King asked, when we don't have such a relationship already defined, at what level would we bid the work out. Mr. Schalliol responded that we often work with a company who has been doing previous work on a project or in an area, presuming their experience would add value to their price or product. Other times we put out an RFP. It depends on the project. Mr. Varner asked if the project opens up land for development. Mr. Schalliol responded that it would open up land for more hangers or another fixed based operator. The county has a lot of acreage out that way; it could open up developable land there. But one of the benefits is that it does a lot of "looping" of networks. It increases fire protection and sewer collection. Mr. Inks noted that Trade Drive might someday be made a through street. 12 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 Upon a motion by Mr. Alford, seconded by COMMISSION APPROVED RESOLUTION N0.2687 Mr. Downes and unanimously carried, the APPROVING AN ADDENDUM. TO THE MASTER COmm1SS1On apprOVed ReSOIutIOn NO. 2687. AGENCY AGREEMENT (TRADE DRIVE PROJECT) approving an Addendum to the Master Agency Agreement (Trade Drive Project) (8) Resolution No. 2699 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Phase II Environmental Site Assessment at Former South Bend Lathe & Huckins Sites) Ms. Kolata noted that Resolution No. 2699 amends the Master Agency Agreement (Agreement) between the Redevelopment Commission and the Board of Public Works by adding the Phase II Environmental Site Assessment at the former South Bend Lathe and Huckins sites to the agreement. The proposal from Hull & Associates includes soil sampling, analysis of analytical data from the soils sampling and preparation of a report, and preparation of a Revised Remediation Work Plan for the Voluntary Remediation Program (VRP #6020803 - Area A Soils). The goal is to get a Covenant not to Sue. The professional services described in Hull's proposal have a not to exceed cost of $42,694. We are working closely with the Indiana Department of Environmental Management to complete our participation in the Voluntary Remediation Program and this soil sampling is necessary to be able to submit our Revised Remediation Work Plan to them. We have told IDEM that we would submit this Revised Remediation Work Plan by September 30. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION NO. 2699 APPROVING AND AUTHORIZING THE EXECUTION 13 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 Mr. Alford and unanimously carried, the Commission approved Resolution No. 2699 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Phase II Environmental Site Assessment at Former South Bend Lathe & Huckins Sites) (9) Resolution No. 2685 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Commerce Drive Project) Mr. Schalliol noted that in 2003 the city began exploring ways to revitalize the industrial parks surrounding the South Bend Regional Airport. The Airport Industrial Parks 1 and 2 developed southeast of the airport and Parks 3 and 4 northeast of the airport had some vacancy issues, infrastructure needs, and some general coordination. The city undertook several infrastructure projects, including the extension of Voorde Drive and intersection improvements at Bendix & Lathrop and at Bendix and Voorde. Additionally, there was a plan developed to extend Commerce Drive to Sheridan, improve Sheridan Drive, and coordinate a master drainage plan at a new pond constructed along Sheridan. Resolution No. 2685 is related to the extension of Commerce Drive into Sheridan. The project has been designed; right of way and property have been acquired. The professional services proposal from Ken Herceg & Associates will allow for the services related to the acquisition of three temporary right of way easements for this project. The total amount of professional services required in this proposal is $12,675.00. The proposal amount only OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT (PHASE II ENVIRONMENTAL SITE ASSESSMENT AT FORMER SOUTH BEND LATHE & HUCKINS SITES 14 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 includes the professional services and does not include the actual cost of the right of way to be acquired. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2685 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Commerce Drive Project) (10) Resolution No. 2686 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Sheridan and Lincolnway Project) Mr. Schalliol noted that Resolution No. 2686 is related to Sheridan Avenue Improvements and Drainage Improvements at Lincoln Way West. The project has been designed, but the purpose of this proposal is to get the necessary professional services to acquire all permanent and temporary right of way for the project. There are 8 permanent takes and 32 temporary right of way easements that need to be obtained for this project. The original project that this Supplemental Agreement No. 2 will amend is originally dated Apri19, 2007. The total amount of professional services required in this proposal is $162,469. The proposal amount only includes the professional services and does not include the actual cost of the right of way needed to be acquired for this project. Since the start of this project there have been several new businesses move into this phase of the industrial park, as well as many business expansions. The major expansion of Stanz Foodservice, which employs 170 workers, the relocation of Fortis Plastics which employees 126 workers, and the COMMISSION APPROVED RESOLUTION NO.2685 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT (COMMERCE DRIVE PROJECT 15 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 relocation of smaller local businesses like Enzyme Research. and Danch, Harner & Associates into the area are indicators that the improvements have been a strong part of the ability to retain and attract new businesses to the area. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2686 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Sheridan and Lincolnway Project) (11) Proposal for Professional Services (Boundary and Topographic Survey 912 S. Lafayette Blvd) Mr. Relos noted that Wightman Petrie has submitted a proposal for surveying services at the former Airgas property, located at 912 S. Lafayette Blvd. That property is made up of six parcels, and is located on the east side of Lafayette, just south of Sample. The building on this property sits at the far northern end and is very near the adjacent building to the north. Because of the proximity of the neighboring building, staff feels it is necessary to find the exact boundaries of the property, to assist in the demolition specifications currently being drafted. The scope of work for this agreement includes (1) a boundary survey, (2) placing monuments at property corners if needed and (3) incorporating topographic features into the survey and (4) a drawing showing the relationship of existing buildings to the property lines; The total fee for these services is $3,183. COMMISSION APPROVED RESOLUTION NO.2686 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT ~SHERIDAN AND LINCOLNWAY PROJECT 16 South Bend Redevelopment Commission .Regular Meeting -June 18, 2010 Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission accepted the proposal from Herceg & Associates for the scope of services and fee proposed. C. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. D. South Side Development Area (1) Public Hearing and consideration of Resolution No. 2679 appropriating tax increment financing revenues from Allocation Area No. 2 Fund for the payment of Certain Obligations related to the South Side Development Area Allocation Area No. 2 and other related matters. Ms. Leonard noted that Resolution No. 2679 will appropriate an additional $3,000,000, a portion of which will be funding we expect to receive from the county any day now for the 2010 distribution. This plus the appropriation done earlier in the year will allow us to make early payments on the outstanding debt. Mr. Inks noted that Erskine Commons has performed very well from a tax standpoint. It has tripled the tax revenue we expected to get from the project. Consequently, when we issued bonds, they were at terms that went out 25 years. We believe by February 2011 we may have sufficient resources to pay off both the TIF Revenue Bond that we are directly obligated to pay, as well as the Economic Development Commission bonds COMMISSION ACCEPTED THE PROPOSAL FROM HERCEG & ASSOCIATES FOR THE SCOPE OF SERVICES AND FEE PROPOSED 17 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 to which we have a pledge of the TIF revenue obligated. If both those bonds can be paid off, we will have the opportunity to rescind the TIF allocation area, which would put the increment back into the main South Side Allocation Area. Mr. Inks noted that the public hearing file is complete, containing a copy of Resolution No. 2679, a copy of the Notice of Hearing, and affidavits from the Tri-County News and South Bend Tribune that the Notice of Hearing was published in those newspapers on May 28, 2010. Ms. Jones opened the public hearing for anyone who wished to speak regarding Resolution No. 2679. There was no one who wished to speak. Ms. Jones closed the public hearing for whatever action the Commission wished to take. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2679 appropriating tax increment financing revenues from Allocation Area No. 2 Fund for the payment of Certain Obligations related to the South Side Development Area Allocation Area No. 2 and other related matters. E. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. F. Douglas Road Economic Development Area (1) Public Hearing and consideration of Resolution No. 2681 appropriating tax PUBLIC HEARING ON RESOLUTION NO. 2679 COMMISSION APPROVED RESOLUTION NO. 2679 APPROPRIATING TAX INCREMENT FINANCING REVENUES FROM ALLOCATION AREA NO.2 FUND FOR THE PAYMENT OF CERTAIN OBLIGATIONS RELATED TO THE SOUTH SIDE DEVELOPMENT AREA ALLOCATION AREA NO.2 AND OTHER RELATED MATTERS 18 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 increment financing revenues from Allocation Area No. 1 Fund for the payment of certain obligations and expenses related to the Douglas Road Economic Development Area Allocation Area No. 1 Ms. Leonard noted that we are appropriating $296,364 we expect to receive any day now from the county semi-annual distribution. Again, this will allow us to make some early debt repayments. We have debt to the Major Moves project and to the City of Mishawaka. The appropriation will also allow us to do some sidewalk work along Douglas Road. Mr. Inks noted that the public hearing file is complete, containing a copy of Resolution No. 2681, a copy of the Notice of Hearing, and affidavits from the Tri-County News and South Bend Tribune that the Notice of Hearing was published in those newspapers on May 28, 2010. Ms. Jones opened the public hearing for PUBLIC HEARING ON RESOLUTION N0.2681 anyone who wished to speak regarding Resolution No. 2681. There was no one who wished to speak. Ms. Jones closed the public hearing for whatever action the Commission wished to take. Mr. Downes said it would be very nice if some of these success stories would get into the media. These are two projects that are very successful. It's a great use of public funds. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2681 appropriating tax increment financing revenues from Allocation Area No. 1 Fund COMMISSION APPROVED RESOLUTION NO. 2681 APPROPRIATING TAX INCREMENT FINANCING REVENUES FROM ALLOCATION AREA NO. 1 FUND FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THE DOUGLAS ROAD ECONOMIC DEVELOPMENT AREA ALLOCATION AREA NO. 1 19 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 for the payment of certain obligations and expenses related to the Douglas Road Economic Development Area Allocation Area No. 1. G. Downtown Medical Services District (1) Resolution No. 2704 approving and authorizing an Addendum to the Master Agency Agreement (Medical District Constrnction) Mr. Inks noted that the construction portion of the Bartlett Street garage facade will cost $720,000. There is a streetscape package that includes curbs sidewalks, tree plantings, a number of improvements throughout the Medical District. A parking lot will be constructed as well. The total cost is $5,175, 482. Mr. Inks noted that the individual line items are only estimates of cost, so staff is requesting only that the total allocation be approved, not the individual line items. We have cash on hand of almost $4,300,000. We are expecting a July TIF distribution of close to $900,000. Mr. Varner suggested that, rather than spending $800,000 on applying brick to an already completed garage, he would like to see a renovation of the old Leeper Park Botanical Gardens. He thinks that would be every bit as amactive as a brick facade to the garage. Mr. Inks responded that the Commission previously approved the funds to do the design work for the garage facade. Also, the Medical TIF District is set to expire in 2015, so there are five additional tax years for collection at approximately $1.8M per year. There should be sufficient resources before the expiration date to make improvements to the Botanical Gardens. 20 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 Ms. Jones asked that the Commission go on record as wanting to use funds to improve the Botanical Gardens- before the TIF district expires. Ms. King asked if these improvements are the last ones Memorial wants made from the TIF district. Mr. Relos said that is ali they have made known right now. Mr. Relos also questioned whether the Botanical Gardens are within the boundaries of the TIF district. Ms. King noted that Memorial had originally wanted to have a new entry north of the hospital, rather than on Bartlett. She asked whether that is still planned. Mr. Relos said what Memorial does plan on doing is to construct a dedicated right turn lane when you are heading south to get onto Bartlett. Mr. Leone said that other entrance plan was deemed to require too many parking spaces. The Bartlett Street entrance was substituted for the other. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2704 approving and authorizing an Addendum to the Master Agency Agreement (Medical District Construction) H. Ratification of Services Contracts 21 COMMISSION APPROVED RESOLUTION NO. 2704 APPROVING AND AUTHORIZING AN ADDENDUM TO THE MASTER AGENCY AGREEMENT (MEDICAL DISTRICT CONSTRUCTION) The space will be eliminated when I put headings on each page. South Bend Redevelopment Commission Regular Meeting -June 18, 2010 Commission Role in Contract Staff Transaction Contractor Service Provided Amount Member 1313 Prairie Ave. Acquisition Phifer Phase I Site $1,000 Schalliol Environmental Assessment 1521 & 1527 S. Acquisition Jerome E. Michaels Appraisal $2,500 Relos Kendall 1521-1527 Kendall Acquisition R. E. Pitts Appraisal $1,650 Relos Street 733 W. Indiana Acquisition Witt Appraisal Appraisal $325 Relos Services 1510 S. Chapin Acquisition Witt Appraisal Appraisal $325 Relos Services 1521 S. Scott, 1525 Acquisition Michaels Appraisal Appraisal $1,200 Relos S. Kemble, 1513 S. Services Kendall, & 1512 S. Scott 1510 S. Chapin Acquisition Michaels Appraisal Appraisal $300 Relos Services 605 W. Indiana, 621 Acquisition Jack Kary Appraisal $1,050 Relos W. Indiana, 809-817 W. Indiana 809-817 Indiana, Acquisition Michaels Appraisal Appraisal $925 Relos 621 W. Indiana and Services 605 W. Indiana 1520 & 1526 S. Acquisition David Waszak Appraisal $9,600 Relos Chapin, 607 W. Appraisals Indiana, 1507 S. Taylor 609 W. Indiana Acquisition Jerome E. Michaels Appraisal $2,900 Relos 1507 S. Taylor Acquisition Jerome E. Michaels Appraisal $3,500 Relos 1520 & 1526 S. Acquisition Jerome E. Michaels Appraisal $2,500 Relos Chapin 1506 S. Catalpa, 817 Acquisition Meridian Title Title Search $500 Relos W. Indiana, 813 W. Indiana, 809 W. Indiana, 1513 S. Scott 22 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission ratified the services contracts approved by staff since June 4, 2010. I. Other (1) Resolution No. 2680 setting a public hearing 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. Ms. Leonard noted that Resolution No. 2680 sets a public hearing for 10:00 a.m., July 9, 2010 to appropriate up to $70,000 for outside legal expenses. Upon a motion by Mr. Alford, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2680 setting a public hearing for 10:00 a.m., July 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. (2) Resolution No. 2701 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 Resolution No. 2701 sets a public hearing for 10:00 a.m., July 9, 2010 to appropriate an amount not to exceed COMMISSION RATIFIED THE SERVICES CONTRACTS APPROVED BY STAFF SINCE JUNE 4, 2010 COMMISSION APPROVED RESOLUTION NO. 2680 SETTING A PUBLIC HEARING FOR 10:00 A.M., JULY 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 23 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 $4,000,000. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2701 setting a public hearing for 10:00 a.m., July 9, 2010 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. (3) Resolution No. 2705 determining that the tax increment which may be collected in the Year 2011 is needed to satisfy obligations of the Commission and that no excess assessed value may be allocated to the respective taxing units and other related matters. Mr. Inks noted that Resolution No. 2705 sets a public hearing for 10:00 a.m., July 9, 2010. The state has a requirement that by July 15 of each year we must inform the Auditor's Office whether any of the increment being captured can be released to the other taxing units. Resolution No. 2705 states that none of the increment will be released; it will all be retained in the TIF districts. Staff has put together a list of anticipated TIF revenue for 2011 in each of the TIF areas and a list of projects on which the revenues maybe spent. The project list is not firm, but an estimate of what needs to be done from TIF revenues. There maybe some substitutions throughout the year. Mr. Varner noted that the St. Joseph Valley Metronet is a private corporation. He thinks it should reimburse the city something each year for the investment the city has made. COMMISSION APPROVED RESOLUTION NO.2701 SETTING A PUBLIC HEARING FOR 10:00 A.M., 7ULY 9, 2010 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 24 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 Comcast pays the city $800,000 per year for right of way. The Metronet is successful. Each of the original investors put in $250,000. Mr. Varner appreciates everything it does, but he feels at some point it would be appropriate for them to reimburse the city for some of its expenditures on the Metronet's behalf. Mr. Leone noted that the city receives a quid pro quo allocation of a certain number of fiber cable it can use for free. Mr. Inks noted that the Erskine Village TIF is also very successful, generating more tax revenue than expected. We hope we can pay off those bonds early also. In the case of those bonds, they cannot be paid off quite as early due to the terms of their sale. There are no call provisions unti12017. We intend collect the TIF and let accumulate in an account, building a cash balance, waiting for the earliest possible time we can pay off the full amount. Mr. Leone noted that the Commission cannot release any of the TIF funds for other jurisdictions while those bonds are outstanding. Mr. Varner asked about the shortage of TIF in the Northeast due to the third hotel not being yet built. Mr. Inks responded that the cash we are expecting to bring in for that allocation area will be about $300,000 short of meeting the bond obligation for Eddy Street Commons in 2011. We are in the process of renegotiating the development agreement for Eddy Street Commons. We have been fortunate, given the economic times, that our construction costs have been significantly lower than anticipated. We believe there is close to $2,000,000 of unspent funds that were committed to the 25 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 project by the city. Those funds will beheld as a reserve to make up the shortfall in the early years of the project. We do not expect there to be a call on any other city resources for 2011, 2012, 2013.. Mr. Varner asked what changes are being made in the development agreement. Mr. Inks responded that the original agreement called for the city to contribute all of the committed money to the project. If we'd built everything that was expected, there was still an obligation on the part of the city to look for additional improvements in the area to finish spending that money. Both parties have decided that that's not in anyone's best interest. That money will be freed up to take care of the shortfall in debt service. Ms. Spivey asked whose responsibility it is for the upkeep of the roundabout at the Airport. Mr. Inks responded that the Airport put that in. It should be the responsibility of the Airport or the Street Dept. to maintain it. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2705 determining that the tax increment which maybe collected in the Year 2011 is needed to satisfy obligations of the Commission and that no excess assessed value maybe allocated to the respective taxing units and other related matters. 7. PROGRESS REPORTS Mr: Inks noted the availability of New Market Tax Credits, competitively available each year. The city initiated an application for those funds to help fund redevelopment projects. The list of types of projects we're looking at supporting with those funds is the COMMISSION APPROVED RESOLUTION NO. 2705 DETERMINING THAT THE TAX INCREMENT WHICH MAY BE COLLECTED IN THE YEAR 2011 IS NEEDED TO SATISFY OBLIGATIONS OF THE COMMISSION AND THAT NO EXCESS ASSESSED VALUE MAY BE ALLOCATED TO THE RESPECTIVE TAXING UNITS AND OTHER RELATED MATTERS PROGRESS REPORTS 26 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 LaSalle Hotel, Ignition Park, Coveleski Ballpark, Coveleski Neighborhood, and others. This is a tax credit program. The city's application is for $SOM of tax credits. By the time they are sold at a discount, the fees related to the upfront use of the credits, what the city would end up with is about $ l OM that can be used to help make projects happen that otherwise wouldn't happen. These projects have to be in lower income areas of the city, but a large portion of the city fits those income requirements. All the projects he mentioned would fit that requirement. We also looked at East Bank Plan implementation. That area would also meet the low income requirement. The application was initiated by the city. As we made the decision to pursue it, we were too late to apply to be an eligible entity to receive the allocation directly. However, South Bend Heritage Foundation was already an eligible entity. They were certified several years ago when the New Market Tax Credit program started. South Bend Heritage was willing to submit the application on the city's behalf. Their application is built around the projects the city wants to see done. We, therefore, feel it is appropriate that the city incur the legal costs for that application. Mr. Inks asked the Commission to recognize the city's responsibility for the application and authorize staff to put together a short letter agreement that we would bring back for ratification. That agreement would be between the Redevelopment Commission and South Bend Heritage Foundation to cover only $15,000 for the application's legal fees. Mr. Inks noted that there's no guarantee the application will be successful. It's a very competitive process. But we think it's worth the opportunity to generate $lOM for projects. If we are not successful this year, we can reapply next year. Mr. Varner asked if the projects have to be specified. Mr. Inks responded that they want a list of projects that we would use the money for, but we are not bound by that list. The application is only meant to demonstrate to the Feds that we have a backlog of projects that. could use the credits. 27 South Bend Redevelopment Commission Regular Meeting -June 18, 2010 Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the payment of the legal fees for New Market Tax Credits and authorized the drafting of a letter agreement with South. Bend Heritage Foundation to be the applicant and recipient of funds. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is a Rescheduled Meeting, Friday, July 9, 2010 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, the meeting was adjourned at 11:25 a.m. Donald E. Inks, Director COMMISSION APPROVED THE PAYMENT OF THE LEGAL FEES FOR NEW MARKET TAX CREDITS AND AUTHORIZED THE DRAFTING OF A LETTER AGREEMENT WITH SOUTH BEND HERITAGE FOUNDATION TO BE THE APPLICANT AND RECIPIENT OF FUNDS NEXT COMMISSION MEETING ADJOURNMENT 28