HomeMy WebLinkAbout6D(19) Staff report: off site improvement to support proposed senior housing dev._ SOUTH e
p4 1 11C /, `DPI
Community & Economic Development
Division of Community Development 1865•
1 200 County -City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 ♦ Phone 574/235 -9660 ♦ Fax 574/235 -9697
T o : Redevelopment Staff & Commisioners
F r o m : Jeff Vitton, CED
S u b j e c t : Staff Report: Off Site Improvement to Support Proposed Senior Housing Dev.
D a t e : October 12, 2010
Per the Lasalle Square Area Redevelopment Plan and applicable Redevelopment Commission
Resolutions — staff requests the Commissions authorization to execute the attached letter to aid the
proposed senior housing project at LaSalle Square.
The attached letter commits $367,000 towards the implementation of the LaSalle Square Area
Redevelopment Plan through the acquisition and demolition of two properties (1007 and 1003 N
Bendix Drive), both of which were previously added to the acquisition list. The budgeted amount
will also allow for the demolition and reconstruction of the LaSalle Square Shopping Center sign at
1033 N. Bendix.
Furnishing this letter to the Sterling Group will make the project eligible for up to ten additional
points (out of 200 possible points) in the system the Indiana Housing and Community Development
Authority utilizes to rank proposed developments. This commitment should aid in giving the
proposed senior housing project a competitive edge in gaining financing for the project, and, in turn,
help support eventual commercial /retail development at the Square. It should be noted that Page 56
of the LaSalle Square Area Redevelopment Plan states, under Recommendations:
"Work with a senior housing developer to come to the Square. This
development seems ideally suited to be situated in the vacant parcel to the
immediate east of LaSalle Library, which will preserve the frontage on Bendix
Drive to be used for retail development. Bringing in a new development will
quickly add residents, improving the likelihood of new retail development for
the area."
The LaSalle Square Area Redevelopment Plan may be viewed online at
www.southbendin.gov /lasallesquare.
I will be available to answer any questions you may have at your upcoming meeting.
What We Do Today Makes A Difference!
Off Site Improvement, Amenity and Facility Investment
10 points will be awarded if a third party (foundation, trust, government entity, or private corporation) investment of
resources is provided that will result in off -site infrastructure improvements adjacent to the project site, and /or the
development of parks, green space and shared amenities, recreational facilities and improvements adjacent to the
proposed project site that will serve the tenant base for the subject project. The proposed improvements , amenities,
and /or facilities must be completed prior to the proposed placed in service date for the project.
The development cost and source of funding associated with the development of the improvements, amenities
and /or facilities must be mutually exclusive of the development cost and sources of funding for the subject property.
The cost for the improvement must be at least $100,000 and be paid for in full by the unrelated third party. Examples
of third party improvements, amenities, and facility investment of resources include, but are not limited to, the
following:
i. Construction of off -site or on -site access road which is required for access to the property,
ii. Reconstruction of existing roads and streetscapes,
iii. Reconstruction of vacant or blighted land with new infrastructure that promotes comprehensive revitalization such
as new residential blocks and streets,
iv. Development of parks, green space or walking trails on a master plan development site,
v. Development of community centers or similar facilities that promote cultural, educational, recreational, or
supportive services for a community,
vi. Construction of sidewalks or streetscape adjacent to the property,
vii. Construction of shopping or retail center adjacent to the property.
Third party investments that will be developed regardless of the proposed development will not be eligible for points
in this section. Required Documentation: Place all documentation in Tab P.
L Conditional commitment of funds,
ii. Detailed source and uses of funds,
iii. Timeline for completion,
iv. Map showing location and description of improvements to the site,
v. A narrative, which includes how the investment will benefit the tenants.
October 12, 2010
Jacob Sipes, Director of Tax Credits
Indiana Housing & Community Development Authority
30 S. Meridian St., Suite 1000
Indianapolis, IN 46204
Re: Heritage Place at LaSalle Sauare
Dear Mr. Sipes;
It is my pleasure to write a letter and provide the associated documentation in
support of the Heritage Place at LaSalle Square proposal submitted to the Low
Income Housing Tax Credit Program by Heritage Place at LaSalle Square Apartments,
LLC. This letter is to demonstrate a conditional commitment of funds by the South
Bend Redevelopment Commission, the sources and uses of the funds, and a timeline
of completion in relation to off -site improvements.
The City of South Bend's Redevelopment Commission amended a Tax Increment
Finance District boundary to include the Square, and a significant community -based
planning process was undertaken in 2008 to foster development and understand
community needs. This process resulted in the LaSalle Square Area Redevelopment
Plan and was adopted by the Redevelopment Commission in the fall of 2008.
It should be duly noted that Page 56 of the Plan states, under Recommendations:
"Work with a senior housing developer to come to the Square.
This development seems ideally suited to be situated in
the vacant parcel to the immediate east of LaSalle Library,
which will preserve the frontage on Bendix Drive to be
used for retail development. Bringing in a new development
will quickly add residents, improving the likelihood of new retail
development for the area."
The South Bend Redevelopment Commission, Area Plan Commission, and South
Bend Common Council authorized resolutions adding the commercial frontage along
Bendix Drive (noted in the paragraph above) to the acquisition list. The paragraph
above also notes that the proposed senior housing development will improve the
likelihood of retail development, which the commercial frontage along Bendix Drive is
designated for. That being said, contingent upon Heritage Place at LaSalle Square
Apartments, LLC success in obtaining financing, the Redevelopment Commission will
make the three following commitments:
Purchase and demolition of 1007 N. Bendix for eventual redevelopment for
retail uses. Anticipated acquisition and demolition cost is $147,000.00.
Purchase and demolition of 1033 N. Bendix for eventual redevelopment for
retail uses. Anticipated acquisition and demolition cost is $200,000.00.
o Demolition and reconstruction of the LaSalle Square Shopping Center
sign at 1033 N. Bendix. Anticipated cost is $20,000.00.
The source of funding these projects will come from the Airport Economic
Development Area, which has sufficient funds to complete the projects. It is
anticipated that the acquisition and demolition of 1007 and 1033 Bendix Drive will
occur within six months of Heritage Place at LaSalle Square Apartments, LLC
receiving a tax credit reservation. Demolition and reconstruction of the LaSalle
Square Shopping Center sign at 1033 N. Bendix will take an additional three months
to allow for sufficient time to design an aesthetically pleasing sign.
If I can be of further assistance, please do not hesitate to reach me at (574) 235-
9339 or via email at dinks(&southbendin.gov.
Sincerely,
Don Inks, Dir. Of Econ.Dev.
City of South Bend