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Home My WebLink About07-09-10 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULED REGULAR MEETING July 9, 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 Ms. Nancy King, Secretary Mr. Donald Alford Members Absent: Dr. David Varner, Vice President Mr. Greg Downes 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. Tom Price, Mayor’s Office Mr. Jeff Gibney, Community & Economic Development Ms. Beth Leonard, Community & Economic Development Mr. David Brenner, Innovation Park Mr. Mike Treadway, McCormick Foods Mr. Mike Calhoun, McCormick Foods Mr. Bill Lamie, ADG Dr. Virginia Calvin, Ivy Tech Ms. Barbara Duncanson, Ivy Tech Mr. Bob Placek, Ivy Tech Ms. Moe Miller, Prism Science Ms. Amber Zebell, Prism Science Ms. Rita Kopala Ms. GlendaRae Hernandez South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, June 18, 2010. CM Upon a motion by Ms. King, seconded by Mr. OMMISSION APPROVED THE INUTES OF THE RMF,J18,2010 EGULAR EETING OF RIDAY UNE Alford and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, June 18, 2010. 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted July 9, 2010 for approval. 305 FUND SBCDA BOND Holladay Corp 53,885.26 WNIT Façade Renovation Wightman Petrie 435.00 William & Lafayette Traffic Analysis Abonmarche 14,193.00 Jefferson & Niles Streetscape Modernization 324 AIRPORT AEDA Michaels Appraisal Service 300.00 1525 S Kemble Michaels Appraisal Service 300.00 1510 S Chapin Michaels Appraisal Service 325.00 809 W Indiana R.E. Pitts & Associates, Inc 6,435.00 Sinco Pools, Enyart Electric Motor Repr, Mason Plumbing R. R. Excavating Studebaker area "A" 36,026.40 Plew Shadley Racher & Braum 13.86 Olive Plow Works Cost Recovery Plew Shadley Racher & Braum 2,518.00 Environmental Kenny Outdoor Solutions 12,551.00 Blackthorn golf course J. W. Turf, Inc 16,406.00 Blackthorn golf course R & R Excavating 208,001.63 Studebaker area "A" DLZ 1,407.50 Studebaker area "A" DLZ 2,255.00 Underground Pipe and Valve Demolition Studebaker "A" South Bend Water Works 75.61 Ardmore Tr/Prast Blvd South Bend Water Works 159.08 1000 Fellows St Innovation Park 630.00 Office Space Rental Jerome E. Michaels, MAI 2,000.00 Appraisal report Phifer Environmental Services 1,400.00 1521 & 1527 Kendall Ave Phifer Environmental Services 1,400.00 735-747 W. Indiana Ave Barany Sheet Metal Phifer Environmental Services 1,400.00 801-807 W Indiana Ave Hell's Angels Phifer Environmental Services 1,000.00 Phase I Report R.E. Pitts & Associates, Inc 2,650.00 318 E Colfax 2 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 3. APPROVAL OF CLAIMS (CONT.) 324 AIRPORT AEDA continued… R.E. McCloskey & associates 3,500.00 1313 Prairie Ave Meridian Title Corporation 100.00 1506 Catalpa St. DLZ 19,395.00 South Bend US 31/Adams Jack J. Kary 1,050.00 Appraisal Circle Lumber, Inc 51.87 Underground Pipe and Vale Meridian Title Corporation 5,237.17 1520 S. Scott St 7.00 501 Wenger St. Indiana Michigan Power Michaels Appraisal Service 300.00 621 W Indiana Ave. Michaels Appraisal Service 300.00 1515 S Kemble David Waszak Appraisals, INC 4,800.00 609 W. Sample / 1520-1526 Chapin Jerome E. Michaels, MAI 2,500.00 Appraisal 1520 & 1526 S. Chapin Botkin & Hall, LLP 251.22 Ignition Park DLZ 4,696.00 Olive/Pine Rd Jerome E. Michaels, MAI 2,500.00 1521-1527 S. Kendall Michaels Appraisal Service 325.00 1506 Catalpa St. Michaels Appraisal Service 325.00 733 W Indiana Ave Michaels Appraisal Service 325.00 1513 S Scott Michaels Appraisal Service 350.00 1510 S Kemble Michaels Appraisal Service 300.00 1512 S Scott Michaels Appraisal Service 325.00 1513 S Kendall Michaels Appraisal Service 300.00 605 W Indiana Ave. Meridian Title Corporation 100.00 1513 S Scott Thomas E. Owens, Jr. 136,725.00 Purchase of right-of-way Olive Rd/U.S. 20 DHA 7,237.00 Olive Industrial Park Landscape Architecture R & R Excavating 15,927.28 Transpo Site DHA 1,500.00 1506 S Taylor Derhonda Horvath 2,500.00 1501 S. Taylor American Electric Power 620,910.04 Transpo 420 FUND TIF DISTRICT-SBCDA GENERAL Indiana Michigan Power 275.29 237 N Michigan St. Populous 25,408.12 Stanley Coveleski Stadium Improvements Ampco System Parking 1,208.26 St Joseph St Surface 121 S. St. Ampco System Parking 882.68 225 Main St. Wightman Petrie 6,070.00 Fred's Transmission & Clutch Rose Pest Solutions 96.00 LaSalle Hotel Tri County New 132.34 Advertisement for Cove Stadium Light RFP 2.25 325 S. Lafayette Blvd Indiana Michigan Power 3 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 3. APPROVAL OF CLAIMS (CONT.) 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT DLZ 68,582.50 SB Michigan St S Curves South Bend Tribune 48.45 Bartlett St. Parking Structure Façade South Bend Tribune 57.84 Memorial Hospital Streetscape Improvement Tri County New 51.94 Bartlett St. Parking Structure Façade Tri County New 60.11 Memorial Hospital Streetscape Improvement 431 TIF SSDA #2 - ERSKINE COMMONS The Bank of New York Mellow Trust 2,242,084.00 Erskine Commons 2006 Bond Pay Off Co. N.A. 454 AIRPORT URBAN ENTERPRISE ZONE Project Impact Project Impact 87,501.00 $ 3,630,065.70 CC Upon a motion by Mr. Alford, seconded by Ms. King OMMISSION APPROVED THE LAIMS J9,2010, SUBMITTED ULY AND ORDERED THE and unanimously carried, the Commission approved the CHECKS TO BE RELEASED Claims submitted July 9, 2010, and ordered checks to be released. 4. COMMUNICATIONS TC There were no Communications. HERE WERE NO OMMUNICATIONS 5. OLD BUSINESS A. Tax Abatement (1) Resolution No. 2676 approving an application for real property tax deduction for property located at 3425 W. Lathrop (McCormick and Company) Mr. Mathia noted that McCormick and Company isproposing to construct and equip an approximate 50,000 square foot addition to its manufacturing facility. The addition will house a distribution operation for the products it makes. Its products include condiments (ketchup, mustard, salad 4 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 5. OLD BUSINESS (CONT.) A. Tax Abatement (1) continued… dressing, etc.) for major restaurant chains. The company is weighing where to locate this distribution operation. Sites in Michigan, Illinois and other states where McCormick has manufacturing/distribution facilities are also being considered. Construction of the addition is estimated to cost $5,010,913. The equipment to be purchased includes fork lifts, coolers, racking, computers, and furniture and fixtures. The estimated cost of the equipment is $875,173. A personal property tax abatement application is being submitted as part of the total project. The total project cost is estimated to be $5,886,086. McCormick and Company is in the early stages of its decision making process. Therefore, it does not have a firm list of construction contractors. Based on current information it is estimated that the applicant will qualify for a six-year abatement term. The length of the term could increase depending on the final selection of the contractors. However, it is not expected to exceed nine years. For the real property portion of the project, total taxes to be abated during a six-year abatement period are estimated at $509,442. Total additional taxes to be paid as a result of the project during a six-year abatement period are estimated at $544,383. Total taxes to be abated during a nine-year abatement 5 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 5. OLD BUSINESS (CONT.) A. Tax Abatement (1) continued… period are estimated at $713,262. Total additional taxes to be paid as a result of the project during the nine-year abatement period are estimated at $867,476. The project will create five new, permanent, full-time jobs within the first year of the project representing a new annual payroll of approximately $177,247. The project will retain one hundred twenty-three existing permanent, full-time jobs (of which 30 are minority employees) with an annual payroll of $6,288,998 McCormick and Company hashad one previous personal property tax abatement in 2006. The property is properly zoned for the proposed project. The property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. The project does meet the qualifications for up to a nine-year (9) real property tax abatement under the tax abatement ordinance. Mr. Alford asked the breakdown of the thirty minority employees. He wondered, particularly, if some of those were African Americans. He wondered if the company classified women as minority. Mr. Treadway responded that McCormick and Company does not count Anglo-Saxon women as a minority. He believed it is not standard 6 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 5. OLD BUSINESS (CONT.) A. Tax Abatement (1) continued… practice to count women as a minority. Ms. Jones noted that McCormick and Company will pay $342,000 in taxes in 2011, increasing to $500,000 in 2015. The total additional taxes to be paid as a result of this expansion will be about $1,000,000 over six years. She noted that the term tax abatement is a misnomer. It should be called a tax phase-in. Ms. King asked if McCormick and Company has made its decision yet to centralize its operations in South Bend. Mr. Calhoun said it has not. The tax abatement incentive will be a factor in the decision. CRN.2676 Upon a motion by Ms. King, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AN APPLICATION FOR REAL Mr. Alford and unanimously carried, the PROPERTY TAX DEDUCTION FOR PROPERTY Commission approved Resolution No. 2676 3425W.L(MC LOCATED AT ATHROP CORMICK approving an application for real property tax C) AND OMPANY deduction for property located at 3425 W. Lathrop (McCormick and Company) (2) Resolution No. 2677 approving an application for personal property tax deduction for property located at 3425 W. Lathrop (McCormick Foods) Mr. Mathia noted that the cost of the personal tax abatement over the five year period is expected to be $6,471. CRN.2677 Upon a motion by Ms. King, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AN APPLICATION FOR PERSONAL Mr. Alford and unanimously carried, the PROPERTY TAX DEDUCTION FOR PROPERTY Commission approved Resolution No. 2677 3425W.L(MC LOCATED AT ATHROP CORMICK approving an application for personal F) OODS 7 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 5. OLD BUSINESS (CONT.) A. Tax Abatement (2) continued… property tax deduction for property located at 3425 W. Lathrop (McCormick Foods) B. 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 noted that Resolution No. 2689 accepts the transfer of two properties from St. Joseph County. The former EMI property at 2020 S. Main Street and the former Millennium Environmental property at 604 S. Scott Street have both been vacant for some time and have environmental issues. The county obtained title to the property through the tax sale process and is conveying them to the Commission for $1 per parcel. Staff has worked with environmental legal counsel to obtain a “Comfort Letter” for each property from the Indiana Brownfields Program. The purpose of the Comfort Letter is to protect the Commission from environmental liability for the property. Our plans are to demolish both properties and make the land available for new development. The Indiana Department of Environmental Management has agreed to complete a remediation of the soils at the Millennium property and we will coordinate our demolition with them so that they can 8 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 5. OLD BUSINESS (CONT.) B. Airport Economic Development Area (1) continued… complete their cleanup. Mr. Meteiver noted that the Comfort Letters are “prospective purchaser” letters. They don’t limit the city’s liability for anything it has done to the property, but they do absolve the city of any liability for prior acts that led to the current condition of the property. The city also has protection under the Indiana state statute, which adopts the Circla federal environmental statute which provides protection for a governmental entity that accepts transfer from another governmental entity. The county is protected by a different section of that law when they involuntarily become owners through tax sale. CRN.2689 Upon a motion by Mr. Alford, seconded by OMMISSION APPROVED ESOLUTION O ACCEPTING THE TRANSFER OF REAL PROPERTY Ms. King and unanimously carried, the S.JC,I. FROM T OSEPH OUNTY NDIANA Commission approved Resolution No. 2689 (ME,604S.S ILLENNIUM NVIRONMENTAL COTT accepting the transfer of real property from SEMI,I.,2020S.MS) TREET AND NC AIN TREET St. Joseph County, Indiana. (Millennium Environmental, 604 S. Scott Street and EMI, Inc., 2020 S. Main Street) 6. NEW BUSINESS A. Public Hearing (1) Public Hearing on Resolution No. 2702, an Additional Appropriation Resolution of the City of South Bend Redevelopment Commission (Downtown Medical Services District) Ms. Leonard noted that Resolution No. 2702 9 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued… appropriates an additional $2,252,000. We received more money than anticipated in tax revenues for 2009 which we received in early 2010. This resolution also appropriates the revenue we anticipate receiving in 2010. Mr. Inks noted that the public hearing file is complete, containing a copy of Resolution No. 2701 setting the public hearing, a copy of the Notice of Hearing, a copy of Resolution No. 2702 and affidavits from the South Bend Tribune and Tri-County News that the Notice of Hearing was published in those newspapers on June 25, 2010. PHRN.2702 Ms. Jones opened the public hearing for UBLIC EARING ON ESOLUTION O whoever wished to speak regarding Resolution No. 2702. There was no one who wished to speak. Ms. Jones closed the public hearing for whatever action the Commission wished to take. (2) Approval of Resolution No. 2702 CRN.2702, Upon a motion by Ms. King, seconded by OMMISSION APPROVED ESOLUTION O AAR AN DDITIONAL PPROPRIATION ESOLUTION Mr. Alford and unanimously carried, the CSBR OF THE ITY OF OUTH END EDEVELOPMENT Commission approved Resolution No. 2702, C(DMS OMMISSION OWNTOWN EDICAL ERVICES an Additional Appropriation Resolution of D) ISTRICT the City of South Bend Redevelopment Commission (Downtown Medical Services District) (3) Resolution No. 2703 appropriating monies from the General Fund (Fund 433) or the purpose of paying for certain expenses incurred by the Redevelopment Commission. 10 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) A. Public Hearing (3) continued… Ms. Leonard reminded the Commission it had appropriated $15,000 for outside legal counsel. The Commission has now authorized the legal work on the New Market Tax Credits project. That will require approximately an additional $15,000. Mr. Inks noted that the public hearing file is complete, containing a copy of Resolution No. 2680 setting the public hearing, a copy of the Notice of Hearing, a copy of Resolution No. 2703 and affidavits from the South Bend Tribune and Tri-County News that the Notice of Hearing was published in those newspapers on June 25, 2010. PHRN.2703 Ms. Jones opened the public hearing for UBLIC EARING ON ESOLUTION O whoever wished to speak regarding Resolution No. 2703. There was no one who wished to speak. Ms. Jones closed the public hearing for whatever action the Commission wished to take. (4) Approval of Resolution No. 2703 CRN.2703 Upon a motion by Mr. Alford, seconded by OMMISSION APPROVED ESOLUTION O G APPROPRIATING MONIES FROM THE ENERAL Ms. King and unanimously carried, the F(F433) UND UND OR THE PURPOSE OF PAYING Commission approved Resolution No. 2703 FOR CERTAIN EXPENSES INCURRED BY THE appropriating monies from the General Fund RC EDEVELOPMENT OMMISSION (Fund 433) or the purpose of paying for certain expenses incurred by the Redevelopment Commission. 11 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) Proposal for architectural services related to Century Center Island Park (Pavilion) Mr. Inks noted that in April 2010, shortly after the current pavilion appeared on Island Park, staff asked the Commission to fund construction of a permanent pavilion that is more appropriate for the site. ADG has submitted a proposal to design the new pavilion for a cost not to exceed $60,000. Ms. Jones asked about the rendering the Commission was shown of the pavilion at the time the Commission approved expenditures for stabilizing Island Park. Was that rendering simply an idea and not based on actual design work? Mr. Lamie said that ADG presented early concepts for a pavilion on the island. Compromises were made as Century Center established a budget for the project. The decision was made to construct a temporary pavilion and design of a permanent pavilion was not done. Many of the designs ADG presented at that time were photographs of other pavilions used at festive venues. This proposal does not duplicate services provided previously. Mr. Gibney noted that the temporary tent currently on the island, which at 80 ft is the largest commercial tent in the community, will be transferred to the Park Department for its use. Mr. Gibney also noted that the condominium development at the former Rink site is expected to break ground next week. The prospective purchasers of those 12 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued… condominiums were very concerned about the appearance of the current tent on the island. Staff will return to the Commission at a later date for an appropriation of TIF funds to construct the new pavilion. C Upon a motion by Ms. King, seconded by OMMISSION ACCEPTED THE PROPOSAL FROM ADGCCI FOR DESIGN OF ENTURY ENTER SLAND Mr. Alford and unanimously carried, the PP ARK AVILION Commission accepted the proposal from ADG for design of Century Center Island Park Pavilion. (2) Special Purchase Request related to Century Center Island Park (Furnishings) Mr. Inks noted that on April 23 the Commission approved a funding request and added $79,000 to be available to Island Park to deal with the furnishings for the park. The request today is that the purchase be considered a sole source purchase for which it is not appropriate to seek bids or quotes. For a purchase of this size, the city’s policy is to require three quotes. But because of the nature of the equipment we are looking for and the requirements of Century Center, it’s not a competitive situation. There is only one vendor that can meet those requirements. We believe we have met the requirements to consider this a special request for a sole source purchase. The company to be used is providing almost a 17% discount on the prices. The Commission previously approved the use of $79,000 for the purchase. The total cost in this quote is $56,508. Staff recommends approving the special purchase 13 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued… request. Mr. Lamie noted that the $79,000 price that was approved included security lighting and security fencing as well as new interpretive signage. Those items will still be bid as required by city policy. The portion of the $79,000 that was allocated to furniture was $65,000. There are remaining purchases to be made from the remaining funds. CS Upon a motion by Mr. Alford, seconded by OMMISSION APPROVED THE PECIAL PRC URCHASE EQUEST RELATED TO ENTURY Ms. King and unanimously carried, the CIP(F) ENTER SLAND ARK URNISHINGS Commission approved the Special Purchase Request related to Century Center Island Park (Furnishings) (3) Proposal for landscaping and engineering services (SW Jefferson and Main Streets) Mr. Relos noted that staff has received a proposal from Danch, Harner & Associates for landscaping and engineering services for the improvement of the corner of Jefferson and Main streets. This project area encompasses the three lots on the southwest side of Jefferson and Main streets. Recently the Commission approved the planting of trees on the two grassy lots at this corner. This project will complete the improvements to this highly visible corner. On the northern-most grassy lot, we would like to replace the topsoil and have it hydroseeded; add additional mulch to the 14 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) continued… trees; remove the steel posts along its boundary; and add three terra cotta colored cement pads, with two benches per pad. To the middle paved parking lot, we would remove the cement block entrance, and replace it with shrubby; remove old miscellaneous items sticking out of the ground at the entrance; remove the large cement barriers at the back of the lot, and reseal and restripe the lot, with the possibility of repaving the lot; and price new lighting within this lot. On the southern most grassy lot, we would remove all steel posts along its boundary, remove the guardrail that is currently laying on the ground at the back of the lot, and generally clean the area running from this lot to Lafayette Street. Along the western edge of all three lots, we would make a clean edge of the existing planting bed and add landscaping where needed. The total project services cost is $8,800, with a not-to-exceed amount of $12,000 requested for the time and materials portion of the agreement. Ms. King asked who will be responsible for maintenance of this lot. Mr. Relos responded that DTSB has been watering the trees. He assumed they would take care of the additional watering. The Park Dept. does the 15 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) continued… mowing. Mr. Relos agreed that maintenance of such green space is often overlooked and we should make sure that is cared for. CP Upon a motion by Ms. King, seconded by OMMISSION APPROVED THE ROPOSAL FROM D&A ANCH HARNER SSOCIATES FOR Mr. Alford and unanimously carried the (SW LANDSCAPING AND ENGINEERING SERVICES Commission accepted the proposal from JMS) EFFERSON AND AIN TREETS Danch harner & Associates for landscaping and engineering services in an amount not to exceed $12,000 (SW Jefferson and Main Streets) C. Airport Economic Development Area (1) Staff report on Certified Technology Park Operating Grant Application (Innovation Park) Mr. Inks noted that in August 2008 the Redevelopment Commission applied to the Indiana Economic Development Corp. (IEDC) to establish a Certified Technology Park and requested both capital and operating grants related to the Technology Park. IEDC approved the establishment of the Technology Park and provided a $2.0 million capital grant, but did not approve the requested $1.84 million operating grant. IEDC wanted to see progress made to construct the facility at Innovation Park and progress on leasing that facility. The first building at Innovation Park was completed and opened in the fall of 2009. Since then, three tenants have been announced and others are pending 16 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued… announcement. In addition, several companies are Clients of Innovation Park, receiving services but not occupying space. Given the progress made since IEDC approved the Technology Park in 2008, it is appropriate to again seek the Operating Grant funds. The new Application is attached, and shows a request for $1,744,200 in Operating Grant funds. Staff recommends approval of the application. Ms. King asked about the tenant, Esteem, whether it is a technology company. Mr. Brenner responded that Esteem is a program spun out of the University of Notre Dame. It is a new masters program for graduate students in science and engineering. The students are working on twenty-seven different pieces of patented technology. Beginning next week, they have to defend their thesis, including a business plan, for all twenty-seven of those. Innovation Park is hopeful that a few of those will stay and move on through the program. Ms. King also asked about the nature of Fish Taco Ventures. Mr. Brenner responded that it is an Angel Investment Group that is putting money into some of these companies. CC Upon a motion by Ms. King, seconded by OMMISSION APPROVED THE ERTIFIED TPOG ECHNOLOGY ARK PERATING RANT Mr. Alford and unanimously carried, the A(IP) PPLICATION NNOVATION ARK Commission approved the Certified Technology Park Operating Grant Application (Innovation Park) 17 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) Resolution No. 2706 related to acquisition of property in the Airport Economic Development Area (1514 S. Chapin St.) Mr. Relos explained items 6.B.(2) through 6.B.(8). All those properties were added to the Airport Economic Development Area Acquisition List by Resolution No. 2668 on May 21, 2010. They were added in an effort to clean and 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 Avenue. In all cases, the acquisition offer is set as the average value of two independent appraisals. Mr. Relos noted that 1514 S. Chapin is a two story, three bedroom single family residence. Resolution No. 2706 sets the acquisition value of the property at $23,500. CRN.2706 Upon a motion by Mr. Alford, seconded by OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Ms. King and unanimously carried, the AEDA IRPORT CONOMIC EVELOPMENT REA Commission approved Resolution No. 2706 (1514S.CS.) HAPIN T related to acquisition of property in the Airport Economic Development Area (1514 S. Chapin St.) (3) Resolution No. 2707 related to acquisition of property in the Airport Economic Development Area (823 W. Indiana Ave.) Mr. Relos noted that 823 W. Indiana is a vacant lot at the northeast corner of Indiana Avenue and Catalpa Street. Resolution No. 2707 sets the acquisition value of the property at $2,450. 18 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued… CRN.2707 Upon a motion by Mr. Alford, seconded by OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Ms. King and unanimously carried, the AEDA(823 IRPORT CONOMIC EVELOPMENT REA Commission approved Resolution No. 2707 W.IA.) NDIANA VE related to acquisition of property in the Airport Economic Development Area (823 W. Indiana Ave.) (4) Resolution No. 2708 related to acquisition of property in the Airport Economic Development Area (1519 S. Kemble Ave.) Mr. Relos noted that 1519 S. Kemble Ave.is a vacant lot on the west side of Kemble, between Indiana and Prairie . Resolution No. 2708 sets the acquisition value of the property at $2,900. CRN.2708 Upon a motion by Mr. Alford, seconded by OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Ms. King and unanimously carried, the AEDA IRPORT CONOMIC EVELOPMENT REA Commission approved Resolution No. 2708 (1519S.KA.) EMBLE VE related to acquisition of property in the Airport Economic Development Area (1519 S. Kemble Ave.) (5) Resolution No. 2716 related to acquisition of property in the Airport Economic Development Area (1510 S. Kemble) Mr. Relos noted that 1510 S. Kemble is a two story, 1,270 square foot, four bedroom single family residence. Resolution No. 2716 sets the acquisition value of the property at $7,000. Upon a motion by Mr. Alford, seconded by CRN.2716 OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Ms. King and unanimously carried, the AEDA IRPORT CONOMIC EVELOPMENT REA Commission approved Resolution No. 2716 19 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 (1510S.K) 6. NEW BUSINESS (CONT.) EMBLE C. Airport Economic Development Area (5) continued… related to acquisition of property in the Airport Economic Development Area (1510 S. Kemble) (6) Resolution No. 2717 related to acquisition of property in the Airport Economic Development Area (1515 S. Kemble Ave.) Mr. Relos noted that 1515 S. Kemble Ave.is a two story, 1,342 square foot, two bedroom single family residence. Resolution No. 2717 sets the acquisition value of the property at $11,250. CRN.2717 Upon a motion by Mr. Alford, seconded by OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Ms. King and unanimously carried, the AEDA IRPORT CONOMIC EVELOPMENT REA Commission approved Resolution No. 2717 (1515S.KA.) EMBLE VE related to acquisition of property in the Airport Economic Development Area (1515 S. Kemble Ave.) (7) Resolution No. 2718 related to acquisition of property in the Airport Economic Development Area (1525 S. Kemble Ave.) Mr. Relos noted that 1525 S. Kemble Ave. is a two story, 1,296 square foot, four bedroom single family residence. Resolution No. 2718 sets the acquisition value of the property at $29,000. CRN.2718 Upon a motion by Mr. Alford, seconded by OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Ms. King and unanimously carried, the AEDA IRPORT CONOMIC EVELOPMENT REA Commission approved Resolution No. 2718 (1525S.KA.) EMBLE VE related to acquisition of property in the Airport Economic Development Area (1525 S. Kemble Ave.) 20 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (8) Resolution No. 2719 related to acquisition of property in the Airport Economic Development Area. (621 W. Indiana) Mr. Relos noted that 621 W. Indiana is a two story, 1,304 square foot, three bedroom single family residence. Resolution No. 2719 sets the acquisition value of the property at $20,250. CRN.2719 Upon a motion by Mr. Alford, seconded by OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Ms. King and unanimously carried, the AEDA.(621 IRPORT CONOMIC EVELOPMENT REA Commission approved Resolution No. 2719 W.I) NDIANA related to acquisition of property in the Airport Economic Development Area. (621 W. Indiana) (9) Resolution No. 2720 related to acquisition of property in the Airport Economic Development Area (1506 S. Catalpa St.) Mr. Relos noted that 1506 S. Catalpa is a two story, 1,152 square foot, four bedroom single family rental residence. Resolution No. 2720 sets the acquisition value of the property at $21,500. The appraisers who valued this property did so based on both the income and market approaches. They blended their values based on both, to arrive at the average value of $21,500. CRN.2720 Upon a motion by Ms. King, seconded by OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Mr. Alford and unanimously carried, the AEDA IRPORT CONOMIC EVELOPMENT REA Commission approved Resolution No. 2720 (1506S.CS.) ATALPA T related to acquisition of property in the Airport Economic Development Area (1506 S. Catalpa St.) 21 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (10) Resolution No. 2721 approving an accepting a counter offer for the acquisition of property in the Airport Economic Development Area (1506 S. Catalpa St.) Mr. Relos noted that the owner of 1506 S. Catalpa has made a counter offer of $25,000. When looking only at the income approach value for this property, each appraiser valued it at $25,000, based upon a researched gross rent multiplier for the area. Since this is a rental property, staff feels the counter offer by the owner is reasonable. CRN.2721 Upon a motion by Ms. King, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AN ACCEPTING A COUNTER OFFER Mr. Alford and unanimously carried, the FOR THE ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 2721 AEDA IRPORT CONOMIC EVELOPMENT REA approving an accepting a counter offer for (1506S.CS.) ATALPA T the acquisition of property in the Airport Economic Development Area (1506 S. Catalpa St.) (11) Real Estate Donation Agreement with Community Enterprises Properties LLC (Ivy Tech), 412 E. Sample Street, former Habitat Restore) Mr. Relos noted that on August 26, 2009, the Commission approved the addition of four properties along East Sample St to the acquisition list of the Airport Economic Development Area. These properties were added in an effort to help Ivy Tech expand classroom, storage, and parking space in light of its large increases in enrollment. If staff was able to acquire any of these properties, Legal would then work with Ivy Tech on the 22 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (11) continued… donation of the property to Ivy Tech. The Real Estate Donation Agreement is for the first property to be donated to Ivy Tech. The Commission has a signed purchase agreement for the Habitat ReStore at the corner of Sample and Fellows. Habitat is still using this property as they prepare their new location for their eventual move, which is to take place before November 1. The purchase agreement between the Commission and Habitat is recognized and included as an exhibit in the donation agreement. Ms. King asked if the renovations at the Main Street site are on schedule to be completed by November 1. Mr. Relos agreed that on the outside it doesn’t appear that anything is happening there. He assumes that work must be progressing on the inside. Mr. Relos said that Ivy Tech is very appreciative of the Commission’s help, as they try to find ways to accommodate as many students as possible. Being able to show community support for our local Ivy Tech is important when the Ivy Tech Foundation decides where to spend the dollars given them, and the Commission’s partnership with Ivy Tech in this endeavor is a great indicator of the community’s support. Dr. Calvin commended the Redevelopment staff for its leadership and collaboration to help Ivy Tech grow to meet the needs of its students. 23 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (11) continued… CRE Upon a motion by Mr. Alford, seconded by OMMISSION APPROVED THE EAL STATE DAC ONATION GREEMENT WITH OMMUNITY Ms. King and unanimously carried, the EPLLC(IT),412 NTERPRISES ROPERTIES VY ECH Commission approved the Real Estate E.SS,HR) AMPLE TREET FORMER ABITAT ESTORE Donation Agreement with Community Enterprises Properties LLC (Ivy Tech), 412 E. Sample Street, former Habitat Restore) (12) Resolution No. 2723 approving and authorizing the execution of an Addendum to the Master Agency Agreement. (Studebaker Demolition – Phase IV) Mr. Relos noted that Resolution No. 2723 approves an addendum to the Master Agency Agreement with the Board of Public Works. The Master Agency Agreement will allow preparation of bid specs and project oversight for the demolition of the last two Studebaker buildings located within the Ignition Park boundaries – the Studebaker Engineering and Foundry buildings. Mr. Relos noted that Exhibit A of the Master Agency Agreement gives the overview of the project scope and anticipated budget for this project. The winning bid for this project should be awarded in August, with demolition beginning in September of this year. CRN.2723 Upon a motion by Ms. King, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AND AUTHORIZING THE EXECUTION Mr. Alford and unanimously carried, the AMA OF AN DDENDUM TO THE ASTER GENCY Commission approved Resolution No. 2723 A.(SD– GREEMENT TUDEBAKER EMOLITION approving and authorizing the execution of PIV) HASE an Addendum to the Master Agency Agreement. (Studebaker Demolition – Phase IV) 24 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (13) Proposal for Topographic Survey (Gates Toyota Block) Mr. Schalliol noted that this item belongs under the South Bend Central Development Area. Staff solicited a proposal from Wightman Petrie to perform a topographic survey for the Gates Toyota Block (Wayne, William, Western, Lafayette). The City completed a boundary survey of the block in July 2008, but due to uncertainty on acquisition opted to hold on completing the topographic survey until our planning got a little farther along. With the acquisition and reuse planning of the former Schillings building, streetscape and infrastructure planning at the Fred’s Transmission & Clutch site and with some discussion with developers on a reuse of the Gates property, the topographic survey is very necessary to current planning. The fee for survey services is $11,678. Staff requests a not-to-exceed amount of $13,000 to complete this work. Mr. Relos noted that most of the demolition at Ignition Park has been done with Section 108 funds. It was recently decided to use TIF funds for the remaining demolition, which is why this is coming before the Commission. C Upon a motion by Ms. King, seconded by OMMISSION ACCEPTED THE PROPOSAL FROM WP IGHTMAN ETRIE FOR THE SCOPE OF SERVICES Mr. Alford and unanimously carried, the PROPOSED AND AN AMOUNT NOT TO EXCEED Commission accepted the proposal from $13,000.(TSG OPOGRAPHIC URVEY ATES Wightman Petrie for the scope of services TB) OYOTA LOCK proposed and an amount not to exceed 25 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (13) continued… $13,000. (Topographic Survey Gates Toyota Block) (14) Proposal for Design Services (Arnold Street edge of Oliver Industrial Park) rd Mr. Schalliol noted that at its April 23 meeting the Commission approved a proposal from Danch, Harner & Associates (“DHA”) to provide a variety of planning and design services related to planned improvements within and adjacent to the Oliver Industrial Park on Chapin Street. On st May 21, the Commission approved a second proposal with DHA to provide design services for entry park signage. The third request before the Commission now is a proposal from Danch, Harner & Associates to provide design services for the western edge of the Oliver Industrial Park along Arnold Street. With the recent opening of Underground Pipe & Value located towards the rear of the park, the completion of the retention area in the northwest corner of the park and soon the acquisition of the final two parcels on Ford Street, there is a strong need to address the western side of the park. For years, the neighbors along Arnold Street were separated from the Oliver site by a large building built right to the sidewalk, but with that demolition a few years ago and new industrial development filling the park, a buffer zone needs to be created. The fee for the project is proposed to be $9,750 with cost for Bidding & Negotiation 26 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (14) continued… (Task 4) and Construction Inspection (Task 5) to be expensed at a time & materials amount. The project includes topographic survey, site analysis, land use planning and design concepts and construction plans for buffering along Arnold Street. Staff requests approval of Tasks 1-5 ata Not-To-Exceed cost of $11,000. C Upon a motion by Mr. Alford, seconded by OMMISSION ACCEPTED THE PROPOSAL FROM DH&A ANCH ARNER SSOCIATES FOR THE SCOPE Ms. King and unanimously carried, the OF SERVICES PROPOSED AND A FEE NOT TO Commission accepted the proposal from $11,000 EXCEED Danch Harner & Associates for the scope of services proposed and a fee not to exceed $11,000. D. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. E. South Side Development Area (1) Staff report and Resolution No. 2722 determining to proceed with the redemption of the presently outstanding Adjustable Rate Demand Tax Increment Revenue Bonds, Series 2006 (Erskine Commons Project) Mr. Inks noted that in April 2004 the Redevelopment Commission entered into a Development Agreement with Anchor Acquisitions, Ltd. That Agreement anticipated two bonds being issued for the development of Erskine Commons, an EDC bond in the amount of $3.5 million, and a 27 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) E. South Side Development Area (1) continued… TIF Revenue bond in the amount of $2.44 million. The EDC bond was issued in 2005 for on-site improvements related to capping an old landfill, demolition of small structures on the site, relocation of electric utility lines and relocation of an underground pipeline. In 2006 the TIF Revenue bonds were issued for improvements to Ireland Road and the intersection with Michigan Street. Both bond issues have maturity dates in 2025. Development of Erskine Commons has progressed beyond expectations and is generating annual TIF revenue of $3.1 million compared to the original projection of $.75 million. Consequently, we are in a position to pay off the TIF Revenue bonds now with cash on hand. Currently we have cash of about $4.8 million, while we need only about $2.3 million to redeem these bonds. With the remaining cash balance of about $2.5 million, plus the anticipated December TIF settlement of $1.4 to 1.5 million, we expect to be able to pay off the 2005 EDC bonds in the first quarter of 2011. Resolution No. 2722 for consideration today only seeks authorization to pay off the 2006 TIF Revenue bonds and staff recommends approval. Upon a motion by Mr. Alford, seconded by CRN.2722 OMMISSION APPROVED ESOLUTION O DETERMINING TO PROCEED WITH THE Ms. King and unanimously carried, the REDEMPTION OF THE PRESENTLY OUTSTANDING Commission approved Resolution No. 2722 ARDTI DJUSTABLE ATE EMAND AX NCREMENT determining to proceed with the redemption RB,S2006(E EVENUE ONDS ERIES RSKINE 28 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 CP) 6. NEW BUSINESS (CONT.) OMMONS ROJECT E. South Side Development Area (1) continued… of the presently outstanding Adjustable Rate Demand Tax Increment Revenue Bonds, Series 2006 (Erskine Commons Project) F. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. G. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. H. Ratification of Services Contracts Commission Role in Service Contract Staff Transaction Contractor Provided Amount Member 1506 S. Witt Appraisal Catalpa Acquisition Services Appraisal $325 Relos Michaels 1506 S. Appraisal Acquisition Services Appraisal $325 Relos Catalpa Witt Appraisal Services 1513 S Scott Acquisition Appraisal $325 Relos Michaels Appraisal 1513 S Scott Acquisition Services Appraisal $325 Relos Witt Appraisal Services 1510 Kemble Acquisition Appraisal $325 Relos Michaels Appraisal 1510 Kemble Acquisition Services Appraisal $350 Relos 755 S. Michigan St Acquisition R.E. Pitts Appraisal $2,150 Relos 29 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 6. NEW BUSINESS (CONT.) H. Ratification of Services Contracts 755 S. David Waszak Acquisition Appraisal $2,400 Relos Michigan St Appraisals 527-529 W. David Waszak Indiana Acquisition Appraisals Appraisal $2,400 Relos Michaels Appraisal 527-529 W. Indiana Acquisition Services Appraisal $2,500 Relos 1510 S. Kemble Title 1513 S. Acquisition Meridian Title Work $200 Relos Catalpa CS Upon a motion by Ms. King, seconded by Mr. OMMISSION RATIFIED THE ERVICES CJ18, ONTRACTS APPROVED BY STAFF SINCE UNE Alford and unanimously carried, the Commission 2010 ratified the Services Contracts approved by staff since June 18, 2010. 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, July 23, 2010 at 10:00 a.m. 30 South Bend Redevelopment Commission Rescheduled Regular Meeting –July 9, 2010 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. Alford seconded the motion and the meeting was adjourned at 11:05 a.m. 31