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Home My WebLink About2. Minutes 7/23/10 MeetingSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING July 23, 2010 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Ms. Marcia Jones, President Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Donald Alford Ms. Stephanie Spivey Mr. Greg Downes 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 Ms. Kathy Hahn, Economic Development Specialist Mr. David Relos, Economic Development Specialist Ms. Ann Kolata, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: 2. APPROVAL OF MINUTES Mr. Tom Price. Mayor's Office Mr. Jeff Gibney, Community & Economic Development Mr. Michael Rippey, Kitson & Partners Mr. Patrick Perrella Mr. Richard Nussbaum, Attorney Ms. Elizabeth Leonard-Inks Ms. GlendaRae Hernandez Ms. Rita Kopala Mr. Jim VanHouten A. Approval of Minutes of the Regular Meeting of Frida~~, July 9, 2010. Upon a motion by Ms. King, Seconded by Mr. COMMISSION APPROVEDTHE MINUTES OF THE Alford and Unan1n10USly Camed, the COnlmiss>On REGULAR MEETING OF FRIDAY, JULY 9, 2010 approved the Minutes of the Regular Meeting of Friday, July 9, 2010. South Bend Redevelopment Commission Regular Meeting -July 23, 2010 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted July 23, 2010 for approval. 305 FUND SBCDA Wightman Petrie 435.00 William & Lafayette Traffic Analysis 324 AIRPORT AEDA Buxton 22,500.00 Retail Study Refresh for DTSB & LaSalle Abonmarche 1,000.00 Brick rd -Dylan Dr Intersection Improvement Wightman Petrie 8,400.00 Mayflower Rd Sanitary Sewer ADG 2,460.00 ITOSS Building Facade Renovation Lakota 10,155.20 Ignition Park Technology Area Blue Water Group, Inc. 20,450.00 Ignition Park New Contract For Marketing Lakota 7,435.00 Ignition Park Technology Area South Rend Parks &Rec 8,105.00 Lawn Maintenance Hathaway 2 Inc 9,493.00 Devise A Strategic Vision & Development Jerome E. Michaels, MAI 2,900.00 609 W Indiana Ave Appraisals Jerome E. Michaels, MAl 3,350.00 1507 Taylor Appraisals Circle Lumber, Inc 5.97 Keys David Waszak 2,400.00 1507 Taylor St Michaels Appraisal Srvc 300.00 1528 S Kemble St. Appraisals Michaels Appraisal Srvc 350.00 Michaels Appraisal Srvc 350.00 1513 S Catalpa WITT Appraisal Srvc 3,200.00 Purchase of right of way for the Olive Rd/U.S. Meridian Title 300.00 1513 Catalpa, 1510 Kemble & 1508 S. Scott Phifer Environmental 4,200.00 Phase I Environmental Site assessment Sample AR Wastewater 160.00 County Property Transfer Septic Inspection Barbara Crum 117,131.00 Purchase of right of way for the Olive Rd/U.S. Plews Shadley & Racher 4,668.63 Legal Service DHA 11,275.00 Landscape Architect Sopka, Nussbaum, Inabnit & Kaczmarek 524.25 Legal Services Fund 408 13,975.86 Reimburse Acquisition of Properties in County 420 FUND TIF DISTRICT-SBCDA DTSB 29,930.55 South Rend Parks &Rec 1.320.00 Christian Builders L.L.C. 600.00 Populous 25,408.12 Wightman Petrie 10,894.93 Wightman Petrie 2,628.75 Wightman Petrie 2,025.00 Wightman Petrie 160.00 Wightman Petrie 3,342.50 So. Bend Economic Dev 2,262.00 Downtown Beautification Program Streetscape Lawn Maintenance Synagogue (Behind Cove) Stanley Coveleski Stadium Phase I (A) Fred's Transmission Clutch Coveleski Stadium Restroom renovations Coveleski Stadium Field Lighting Schilling's Camera Shop Ignition Park Coveleski Stadium 2 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 3. APPROVAL OF CLAIMS (CONT.) 420 FUND TIF DISTRICT-SBCDA continued... CB Richard Ellis 874.49 LaSalle Hotel Rose Pest Solutions 96.00 LaSalle Hotel South Bend Tribune 124.59 Studebaker Area Ampco System Parking 1,565.24 225 Main St. Ampco System Parking 1,685.26 St Joseph St. Surface Sopka, Nussbaum, Legal Services Inabnit & Kaczmarek 164.25 422 TIF DISTRICT WEST WASHINGTON South Rend Parks & Lawn Maintenance Recreation 225.00 Sopka, Nussbaum, Legal Service Inabnit &Kaczmarek 33.75 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT Carl Walker 8,919.65 Bib specs for New Facade on Memorial 430 FUND SOUTHSIDE DEVELOPMENT TIF AREA #A South Rend Parks & 570.00 Lawn Maintenance Christopher B Burke 55,614.85 Study & Design & Construction Related 433 REDEVELOPMENT ADMIN Anderson Partners 15,000.00 New Market Tax Credits allocation Sopka, Nussbaum, Legal Service Inabnit &Kaczmarek 1,825.20 S 420,794.04 Upon a motion by Ms. King, seconded by Mr. Alford COMMISSION APPROVED THE CLAIMS and unanimously carried, the Commission approved the SUBMITTED JULY 23, 2010, AND ORDERED THE Clalms submitted July 23, 2010, and ordered checks to CHECKS TO BE RELEASED be released. 4. COMMUNICATIONS There were no Communications. THERE WERE NO COMMUNICATIONS 5. OLD BUSINESS There was no Old Business. THERE wAS No OLD BUSINESS South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS A. Tax Abatements (1) Resolution No. 2730 approving an application for real property tax deduction for property located at 902 N. St. Peter Street in the Northeast Neighborhood Development Area. Ms. Hahn gave the staff report on the project. Mr. Patrick Perrella intends to construct a 3,350 sft„ two-story, single-family home as his primary residence. The home will have four bedrooms, four bathrooms, two half bathrooms, a front porch, finished basement and two-car garage. The project is part of the Notre Dame Avenue housing program and, as such, will follow the design specifications and standards required by that program. The cost of the home will be approximately $630,000. Total taxes to be abated during the five-year abatement period are estimated at $1,893. Total taxes to be paid during the five-year abatement period are estimated at $33,531. Ms. Hahn noted that Mr. Perrella has not had a previous tax abatement. The property is properly zoned for the proposed use. The property is in the Northeast Neighborhood Development Area, a tax increment financing allocation area: therefore, the abatement petition must first be approved by the Redevelopment Commission. The project qualifies for five years of residential tax abatement under the tax abatement ordinance. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2730 approving an application for real property tax deduction for property located at 902 N. St. 4 COMMISSION APPROVED RESOLUTION NO. 2730 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 9O2 N. ST. PETER STREET IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS (CONT.) A. Tax Abatement (1) continued... Peter Street in the Northeast Neighborhood Development Area. B. Housing (1) Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 1310 Chalfant Street. (Delphine R. Poe) Mr. Inks noted that the loan is in the amount of $3,800; the grant is in the amount of $3,630. Upon a motion by Mr. Varner, seconded by Mr. Alford and unanimously carried, the Commission approved the Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 1310 Chalfant Street. (Delphine R. Poe) C. South Bend Central Development Area (1) Resolution No. 2732 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Wayne Street Parking Garage Repair Assessment) Ms. Jennings noted that Resolution No. 2732 adds Assessment of the Wayne Street Parking Garage to the Master Agency Agreement with the Board of Public Works. Building's facade and structural integrity. In 2009 an inspection of the ~7arage's exterior COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 131 O CHALFANT STREET. (DELPHINE R. POE) South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... determined that parts of the brick facade were coming detached from the structure. Those areas were immediately repaired. Further inspection has revealed other areas were separating. Staff would like a complete assessment of the building. Fujawa Engineers has submitted a proposal to conduct a complete investigative assessment of the facade and structural conditions and will make recommendations for necessary repairs and for a maintenance program to properly maintain the garage. Fujawa Engineers' fee for the proposed scope of services is $32,600. Staff recommends approval. Mr. Inks noted that the first evidence of damage to the facade was brick having fallen to the street. Those repairs were made immediately. However, there are other places where it is apparent the facade is loose from the main structure. Fujawa's report will provide the basis for complete bid specifications to bid out the work. This expense was in the TIF budget for 2010. Upon a motion by Mr. Varner, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2732 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Wayne Street Parking Garage Repair Assessment) COMMISSION APPROVED RESOLUTION NO. 2732 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT (WAYNE STREET PARKING GARAGE REPAIR ASSESSMENT) 6 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) Proposal for Phase II Site Assessment (1521/1527 S. Kendall St.) Mr. Relos noted that a Phase I assessment was completed by Phifer Environmental for 1521/1527 S. Kendall on June 21, 2010, which revealed certain Recognized Environmental Conditions. A Phase lI is recommended to ensure the building's historic and current use as an auto body and repair /service shop have not contaminated surrounding soil. Phifer has submitted a proposal for doing four Geoprobe soil borings, to a depth of 20 feet, for laboratory testing. These four soil boring sites will then be used to gather ground water, which will also be tested. This data will then be reviewed and compiled into the Phase II report, with an opinion given whether further site assessment is needed. The fee for these services is an amount not to exceed 54,745. Ms. King asked if we generally buy these properties "as is,'' absolving the previous owner of any environmental liability. Mr. Relos responded that the purchase agreement contains language stating that there are no known environmental contaminants. If there are known contaminants, the purchase price would be adjusted accordingly. Mr. Inks noted that when we know a property owner has been involved in contamination of the site, we are more aggressive in pursuing that. In most cases, the business that has caused the contamination is gone. What we 7 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) continued... have pursued are the insurance companies who have liability in relation to those sites. Ms. Kolata noted that if a consultant recommends you do a Phase II assessment, you need to do that. That gives you a defense as the potentially responsible party. If something really bad turns up, you adjust your purchase price for the property accordingly. Upon a motion by Ms. King, seconded by COMMISSION APPROVED THE PROPOSAL FOR Mr. Alford and unanimously carried, the PHASE II SITE ASSESSMENT (1521!1527 S. Commission approved the proposal for Phase KENDALL ST.) lI Site Assessment (1521 /l 527 S. Kendall St.) (2) Resolution No. 2726 related to acquisition of property in the Airport Economic Development Area (809-813 W. Indiana Ave.) Mr. Relos noted that items 6.D.(2) through 6.D.(5) and 6.D.(18) are all resolutions that set the acquisition offering price for property on the Airport Economic Development Area Acquisition List and authorize the sending of a purchase offer for the property. The offering price was established as the average of two independent appraisals. Resolution No. 2726 sets the offering price for 809 - 813 W. Indiana Ave. at X41,500. The property contains a two story, four bedroom single family residences with two garages (a one-car attached and two-car detached). 8 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (2) continued... Upon a motion by Mr. Alford, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2726 related to acquisition of property in the Airport Economic Development Area (809- 813 W. Indiana Ave.) (3) Resolution No. 2727 related to acquisition of property in the Airport Economic Development Area (605 W. Indiana Ave.) Mr. Relos noted that Resolution No. 2727 sets the offering price for 605 W. Indiana at 19, 500. The property contains aone-story, two-bedroom single family residence. Upon a motion by Mr. Alford, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2727 related to acquisition of property in the Airport Economic Development Area (605 W. Indiana Ave.) (4) Resolution No. 2728 related to acquisition of property in the Airport Economic Development Area (1528 S. Kemble Ave.) Mr. Relos noted that Resolution No. 2728 sets the offering price for 1528 S. Kemble Ave. at 40,500. The property contains atwo- story, five-bedroom single family residence. Upon a motion by Mr. Alford, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2728 related to acquisition of property in the COMMISSION APPROVED RESOLUTION NO. 2726 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (809- 813 W. INDIANA AVE.) COMMISSION APPROVED RESOLUTION NO. 2727 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (6OS W. INDIANA AVE.) COMMISSION APPROVED RESOLUTION NO. 2728 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (1528 S. KEMBLE AVE.) 9 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (4) continued... Airport Economic Development Area (1528 S. Kemble Ave.) (5) Resolution No. 2729 related to acquisition of property in the Airport Economic Development Area (1510 S. Chapin) Mr. Relos noted that Resolution No. 2729 sets the offering price for 1510 S. Chapin at $21,000. The property contains atwo-story, two-bedroom single family residence. Upon a motion by Mr. Alford, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2729 related to acquisition of property in the Airport Economic Development Area (1510 S. Chapin) (6) Brownfields Cleanup Revolving Loan Fund Grant Agreement -Environmental Remediation at the former Railroad Property south of the former Studebaker Stamping Plant property Ms. Kolata noted that item 6.D.(6) and 6.D.(7) are related to what we are calling the former railroad property south of the former Studebaker Stamping Plant. The land is vacant. The Commission purchased it from Norfolk Southern Railroad. There is some soil contamination on the site. We are using an EPA grant from stimulus funds to clean it up. The Commission is being asked here to approve a grant agreement in the amount not to exceed $160,000. The budget attached to COMMISSION APPROVED RESOLUTION NO. 2729 RELATED TO ACQUISITION OE PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (1510 S. CHAPIN) 10 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (6) continued... the agreement is approximately $109,549. Bids are to be received by the Board of Public Works on Monday. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved the Brownfields Cleanup Revolving Loan Fund Grant Agreement - Enviromnental Remediation at the fornler Railroad Property south of the former Studebaker Stamping Plant property. (7) Resolution No. 2724 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Environmental Remediation at the former Railroad Property south of the former Studebaker Stamping Plant property) Mrs. Kolata noted that Resolution No. 2724 adds this project to the Master Agency Agreement. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2724 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Environmental Remediation at the former Railroad Property south of the former Studebaker Stamping Plant property) (8) Brownfields Cleanup Revolving Loan Fund Grant Agreement -Environmental Remediation at the former Studebaker Stamping Plant property 11 COMMISSION APPROVED THE BROWNFIELDS CLEANUP REVOLVING LOAN FUND GRANT AGREEMENT -ENVIRONMENTAL REM EDIATION AT THE FORMER RAILROAD PROPERTY SOUTH OF THE FORMER STUDEBAKER STAMPING PLANT PROPERTY COMMISSION APPROVED RESOLUTION NO. 2724 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT (ENVIRONMENTAL REMEDIATION AT THE FORMER RAILROAD PROPERTY SOUTH OF THE FORMER STUDEBAKER STAMPING PLANT PROPERTY) South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (8) continued... Ms. Kolata noted that the Commission has done a lot of remediation on the Studebaker Stamping Plant property, but there are still soiree areas that have materials in the soil. This grant is also for $160,000, but it is the same $160,000 as mentioned previously. The budget for this application is more than for the fornler railroad property, at $117,000. Our intent is to pay for the remediation on the former railroad property, use the remaining money for the Stamping Plant property, and pay for the rest with TIF funds. The goal will be to not have grant money left over. We added this project because the railroad project will cost less than we originally thought. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved the Brownfields Cleanup Revolving Loan Fund Grant Agreement -Environmental Remediation at the former Studebaker Stamping Plant property. (9) Resolution No. 2725 approving and authorizing the execution of an Addendum to the Master Agency Agreement - Environmental Remediation at the former Studebaker Stamping Plant property) Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carved, the Commission approved Resolution No. 2725 approving and authorizing the execution of an Addendum to the Master Agency COMMISSION APPROVED THE BROWNFIELDS CLEANUP REVOLVING LOAN FUND GRANT AGREEMENT- ENVIRONMENTAL REMEDIATION AT THE FORMER STUDEBAKER STAMPING PLANT PROPERTY COMMISSION APPROVED RESOLUTION NO. 2725 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT- ENVIRONMENTAL REMEDIATION AT THE FORMER STUDEBAKER STAMPING PLANT PROPERTY) 12 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (9) continued... Agreement -Environmental Remediation at the former Studebaker Stamping Plant property) (10) Confidential Settlement Agreement and Release Ms. Kolata noted that our environmental attorneys have negotiated a Confidential Settlement Agreement and Release with Lumbermen's Mutual Casualty Company related to environmental claims made by the Commission concerning the former Oliver Plow property. Lumberman's is willing to pay the Commission and the City of South Bend an amount that has been approved by our Legal Department to settle this claim. There are remaining claims against other insurers, but this agreement only covers Lumbel7nen's Mutual Casualty Company. Upon a motion by Mr. Varner, seconded by Mr. Alford and unanimously carried, the Commission approved the Confidential Settlement Agreement and Release with Lumbennen's Mutual Casualty Company. (ll) Resolution No. 2731 approving and authorizing the execution of an Addendum to the Master Agenc~~ Agreement (Blackthorn Golf Cart Bid) Mr. Inks noted that Resolution No. 2731 allows the Board of Public Works to take bids for replacement of all 75 of Blackthorn Golf Course's golf carts. a beverage cart and COMMISSION APPROVED THE CONFIDENTIAL SETTLEMENT AGREEMENT AND RELEASE WITH LUMBERMEN'S MUTUAL CASUALTY COMPANY 13 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (ll) continued... a range picker. We anticipate the cost to come in at over $200,000 over a five year lease. The current golf carts are seven years old and are not at the standard we want at Blackthorn Golf Course. The funds for the carts is from the golf course budget, as it has been in the past. Upon a motion by Mr. Varner, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2731 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Blackthorn Golf Cart Bid) (12) Resolution No. 2734 related to acquisition of property (733 W. Indiana) Mr. Relos noted that Resolution No. 2734 sets the acquisition offering price for 733 W. Indiana at $24,500. This property is a two story, three bedroom single family rental residence. Upon a motion by Mr. Varner, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2734 related to acquisition of property (733 W. Indiana) (13) Staff report on administrative settlement on 733 W. Indiana Mr. Relos noted that, according to the Uniform Relocation Act (Act), which has been adopted as the Commission's relocation COMMISSION APPROVED RESOLUTION NO. 2731 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT (BLACKTHORN GOLF CART BID COMMISSION APPROVED RESOLUTION NO. 2734 RELATED TO ACQUISITION OF PROPERTY (733 Vd. INDIANA 14 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (13) continued... policy, an administrative settlement is authorized in cases where an additional payment is necessary to acquire a property. The property owner has supplied staff with an appraisal that was done in November 2004, based on which he was granted a loan by TCU in December 2004, in the amount of $55,000. This loan appears on the title search Meridian completed in May 2010. The owner currently owes approximately $40,000 on this loan, which staff verified. The property owner also supplied a formula for rental properties he states TCU uses to value rental properties. According to this formula, the property would be valued at approximately $42,000. Staff did verify with TCU that they use a cap rate of 9 - 11 %. Also verified is the lease for $650 /month in rent. Using the income approach to valuing property, the appraisers valued the property at $29,375. The house is assessed at 530,600. The property owner has agreed to accept $40,000, the amount cun•ently owed on this property. Staff recommends accepting the counter offer of S40.000. Upon a motion by Ms. King, seconded by Mr. Alford and unanimously can-ied, the Commission approved the administrative settlement in the amount of 540,000 for 733 W. Indiana. COMMISSION APPROVED THE ADMINISTRATIVE SETTLEMENT INT EH AMOUNT OF $40,000 FOR 733 W. INDIANA 15 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (14) Resolution No. 2733 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Olive Road Right-of--Way Site Clearance) Mr. Schalliol noted that in February 2010, the City of South Bend began the process to acquire the necessary right-of--way for the future expansion of Olive Road from Lincoln Way West to Nimtz Parkway. There are fifteen parcels that have been identified for parcel property takes with all of those parcels being located on the east side of the roadway. The city has successfully negotiated with the four property owners that have structures that will be affected by the roadway project to purchase their property. We don't want those structures to sit vacant and have to maintain them. Resolution No. 2733 approves an Addendum to the Master Agency Agreement with the Board of Public Works for them to enter into a contract with DLZ Indiana LLC, the project designer, to coordinate demolition of structures and right- of-way clearance along the corridor. The intent is to acquire the property at this time and hold the property until the project is ready to build. The project proposal is in the amount of 527,300. Upon a motion by Mr. Varner, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2733 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Olive Road Right-of--Way Site Clearance) COMMISSION APPROVED RESOLUTION NO. 2733 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT (OLIVE ROAD RIGHT-OF-WAY SITE CLEARANCE) 16 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (15) Resolution No. 2710 related to acquisition of property in the Airport Economic Development Area (Maplewood, Lot 36)) Mr. Schalliol noted that Resolution No. 2710 sets the acquisition offering price at $16,350 for property located on Maplewood Drive within the Airport Industrial Park, Phase 2 area within the Airport Economic Development Area. The subject parcel was added to the Airport Economic Development Area Acquisition List by Resolution No. 2668 on May 21, 2010. The property is vacant. The Commission owns several other properties adjacent to this property. The assembled parcels would be used for industrial use as part of the upgrade of the industrial park area. Upon a motion by Mr. Varner, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. ?710 related to acquisition of property in the Airport Economic Development Area (Maplewood, Lot 36) (16) Resolution No. 2712 related to acquisition of property in the Airport Economic Development Area (1313 Prairie Ave.) Mr. Schalliol noted that earlier this year when Beltway Towing sought a variance to use 1313 Prairie for a towing storage yard, Staff realized the city was interested in acquisition of this property to control its use and protect the integrity of Ignition Park. Staff helped Beltway Towing find a better location at the former Christman COMMISSION APPROVED RESOLUTION NO. 2710 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (MAPLEWOOD, LOT 36) 17 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (16) continued... Construction site on Fellows St. Now staff would like to proceed with acquisition of 1313 Prairie. Two independent appraisals have established the acquisition offering price of $189,000. Staff recommends approving Resolution No. 2712. setting $189,000 as the offering price and authorizing the sending of a purchase offer for the property. Upon a motion by Ms. King, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2712 related to acquisition of property in the Airport Economic Development Area (1313 Prairie Ave.) (17) Resolution No. 2713 approving and accepting a counteroffer for the acquisition of property in the Airport Economic Development Area (1313 Prairie Ave.) Mr. Schalliol noted that the owner of 1313 Prairie Ave. has made a counter offer in the amount of 5204,000. The purchase price JVH had negotiated with Beltway Towing was 5195,000. JVH also had additional holding costs incurred while staff was helping to find another site for Beltway. JVH's counter offer reflects those considerations. Staff recommends accepting the counter offer. Ms. King asked how many more properties staff expects to purchase in this area. Mr. COMMISSION APPROVED RESOLUTION NO. 212 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (1313 PRAIRIE AVE.) 18 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (17) continued... Schalliol responded six or seven. Mr. Varner said he was glad Bestway found a suitable location in South Bend. Otherwise, a viable business may have been driven from South Bend over a presumed incompatible use, which was never proven. He's happy it worked out. Upon a motion by Ms. King, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2713 approving and accepting a counteroffer for the acquisition of property in the Airport Economic Development Area (1313 Prairie Ave.) (18) Resolution No. 2735 related to acquisition of property (1513 S. Kendall) Mr. Relos noted that Resolution No. 2735 sets the acquisition offer for 1513 S. Kendall at $32,500. The property contains atwo- story, four-bedroom single family rental residence. Upon a motion by Mr. Alford, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2735 related to acquisition of property (1513 S. Kendall) E. West Washington-Chapin Development Area There was no business in the West Washington-Chapin Development Area. COMMISSION APPROVED RESOLUTION NO. 2713 APPROVING AND ACCEPTING A COUNTEROFFER FOR THE ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (1313 PRAIRIE AVE.) COMMISSION APPROVED RESOLUTION NO. 2735 RELATED TO ACQUISITION OF PROPERTY (1513 S. KENDALL~ 19 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS (CONT.) F. South Side Development Area (1) Resolution No. 2714 related to acquisition of property in the South Side Development Area (4215 S. Main Street) Mr. Schalliol noted that Resolution No. 2714 establishes the acquisition offering price of $79,000 for 4215 South Main Street. The property was added to the acquisition list in 2006 and staff has been trying to come to agreement with the owner on price since that time. The property contains a single family structure. The property is needed to facilitate streetscape and corridor improvements within the Erskine Hills Shopping District and to allow for the future construction of the Main-Lafayette connector. $79,000 is the average of two independent appraisals of the property. Upon a motion by Mr. Varner, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2714 related to acquisition of property in the South Side Development Area (4215 S. Main Street) G. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. H. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. COMMISSION APPROVED RESOLUTION NO. 2714 RELATED TO ACQUISITION OF PROPERTY IN THE SOUTH SIDE DEVELOPMENT AREA (421$ S. MAIN STREET 20 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS (CONT.) I. Ratification of Services Contracts Commission Role in Service Contract Staff Transaction Contractor Provided Amount Member 1508 S Scott Acquisition Witt Appraisal Appraisal 350 Relos Services 1508 S Scott Acquisition Michaels Appraisal Appraisal 350 Relos Services (Christopher Michaels) 1513 S. Acquisition Witt Appraisal Appraisal 350 Relos Catalpa Services 1513 S. Acquisition Michaels Appraisal Appraisal 350 Relos Catalpa Services (Christopher Michaels) 1514-1528 Acquisition Witt Appraisal Appraisal 400 Relos Kendall Services 1514-1528 Acquisition Michaels Appraisal Appraisal 450 Relos Kendall Services (Christopher Michaels) 1508 S Scott Acquisition Meridian Title Title Work 100 Relos 1510 Chapin Acquisition Meridian Title Title Work 100 Relos 1503 Prairie Acquisition Phifer Environmental Phase I Site 1150 Schalliol Ave Services Assessment 1505 Prairie Acquisition Phifer Environmental Phase I Site 1150 Schalliol Ave Services Assessment 1503 Prairie Acquisition Michaels Appraisal Appraisal 4500 Schalliol Ave Services 1505 Prairie Acquisition Michaels Appraisal Appraisal 2475 Schalliol Ave Services 1503 Prairie Acquisition David Waszak Appraisal 2400 Schalliol Ave Appraisals 1505 Prairie Acquisition David Waszak Appraisal 2400 Schalliol Ave Appraisals 1503 Prairie Acquisition Lan<~. Feeney and Surveys 2360 Schalliol Ave Assoc 1505 Prairie Ave Mr. Inks noted that the fee for appraisal of 1503 Prairie was not within the guidelines established by 21 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 6. NEW BUSINESS (CONT.) I. Ratification of Services Contracts the Commission's resolution authorizing staff to execute contracts on the Commission's behalf. Appraisals are limited to $3,500 for commercial property. Ms. King asked why Michaels Appraisals would charge $4,500 for an appraisal that David Wasiak Appraisals charges $2,400 for. Mr. Schalliol responded that it is very difficult to get comparables in that area. Different appraisal companies are willing to make the additional effort for different fees. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission accepted the proposal from Michaels Appraisal Services for an appraisal of 1503 Prairie Ave. at a cost of $4,500. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission ratified the contracts approved by staff since July 9, 2010. 7. PROGRESS REPORTS Mr. Michael Rippey, Kitson & Partners gave an update on the perfornlance of Blackthorn Golf Course during the first six months of 2010. At mid-year, the club is well ahead of budget in net operating income. Revenues trail budget, however, due entirely to poor performance in June, which was caused by record rainfall. The revenue shortfall has been more than offset by positive variances on operating expenses. At mid-year Blackthorn's rounds total is essentially the same as 2009. Kitson put less reliance on discounted rounds, so total revenue from rounds played and food and beverage is about $28,000 more in 2010. The course is spending COMMISSION ACCEPTED THE PROPOSAL FROM MICHAELS APPRAISAL SERVICES FOR AN APPRAISAL OF I SO3 PRAIRIE AVE. AT A COST OF $4,500 COMMISSION RATIFIED THE CONTRACTS APPROVED BY STAFF SINCE JULY 9. 2010 PROGRESS REPORTS 22 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 7. PROGRESS REPORTS (CONT.) about $20,000 more on course maintenance than in 2009. People using the course have noticed the difference. A primary strategic goal of Kitson & Partners for Blackthorn was to increase the average revenue per round. Although food and beverage revenue per round has decreased from $7.71 to $7.68, total revenue per round has increased from $54.53 to $56.82. Although June revenues were $57,000 under budget, revenues through May were enough to offset that and still yield a net increase. Mr. Rippey thanked the Commission for its support in purchasing new golf carts. That will help raise the quality of the course tremendously. Mr.Varner asked if Kitson will be reducing its estimate of the number of rounds to be played in 2010. Mr. Rippey responded that based on such a poor showing in June and the way July has started, he thinks 26,000 rounds is more realistic than the projected 28,000 rounds put forward in the budget. Mr. Varner asked how Blackthorn's performance compares to other courses Kitson has throughout the country. Mr. Rippey responded that of all the courses they know of, the best performance is even with last year. The worst is 8% down from last year. Mr. Varner noted that he participated in an outing at Blackthorn this year and everyone in his party thought the course was in as good a shape as it has ever been. Mr. Inks gave an update on the condition of parking lots the city owns in the downtown. As part of getting their licenses rene~~ed every year, there is an inspection done of the lots and a report made. The lot the Commission owns at Jefferson and Main, surrounded by the two areas newly landscaped with trees, needs to be repaved 23 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 7. PROGRESS REPORTS (CONT.) at a cost of $10,000. Staff will be bringing a request for that at the August 6 meeting. Mr. Inks also noted that the Commission has a facade easement on the State Theater and by way of that eastment has the ability to make improvements to the facade. There is an event coming to the downtown in early August. The new downtown recruitment person, Tamara Nicholl-Smith, has asked that that fagade be cleaned up and repaired prior to the August event, particularly the awnings at street level. They are moldy and most of the lettering is gone.. Staff has solicited quotes to replace them at $3,900. We'd like to get Commission approval today to do that so the work can be done by August 6. Mr. Inks also suggested that the Commission could give staff the authority to act on small property management items such as this and bring them back for ratification. Legal could draft such a resolution if the Commission is amenable. He suggested $10,000 cap per instance, not to exceed budget in a given year. The budget for property management in 2010 is $50,000. The Commission authorized legal counsel to prepare such a resolution. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission accepted the proposal for awnings for the State Theater in an amount not to exceed $4,000. 8. NEXT COMMISSION 1\1EETING The next meeting of the Redevelopment Commission is scheduled for Friday, August 6, 2010 at 10:00 a.m. COMMISSION ACCEPTED THE PROPOSAL FOR AWNINGS FOR THE STATE THEATER IN AN AMOUNT NOT TO EXCEED $4,000 NEXT COMMISSION MEETING 24 South Bend Redevelopment Commission Regular Meeting -July 23, 2010 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, the meeting was adjourned at 11:05 aan. Donald E. Inks, Director 25