Loading...
HomeMy WebLinkAbout2. Minutes 10/15/10 meetingSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING October 15, 2010 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Ms. Marcia Jones, President Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Ms. Stephanie Spivey Mr. Charles S. Leone, Esq. Mr. Lawrence Meteiver, Esq. South Bend, Indiana Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary 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 Ms. Elizabeth Leonard, Community & Economic Dev Mr. Jeff Vitton, Community & Economic Dev Mr. Richard Nussbaum II, Attorney Ms. Geri Hathaway, Hathaway 2 Inc. Mr. Marco Mariani, Downtown South Bend, Inc. Mr. Jeff Parrott, South Bend Tribune Mr. Mark Peterson, WNDU -TV Photographer, WNDU -TV Ms. Mo Miller, Prism Science Mr. Dan Jones Mr. David Matthews, East Bank Development Mr. Ken Fedder Ms. GlendaRae Hernandez Ms. Judith Sutton Mr. Merlin Bellinger Mr. Terry Gaouette, Mr. Victor Osinski, Developer Mr. Jim Shanahan, Shanahan & Shanahan Ms. Linda Wolfson, Community Forum for Econ Dev South Bend Redevelopment Commission Regular Meeting — October 15, 2010 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, October 1, 2010. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, October 1, 2010. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, OCTOBER 1, 2010 Redevelopment Commission Claims submitted October 15, 2010 for approval. 305 FUND SBCDA BOND Abonmarche 26,800.00 Jefferson & Niles Streetscape Modernization Wightman Petrie 12,876.00 William & Lafayette Traffic Analysis 324 AIRPORT AEDA Michaels Appraisal Service 350.00 1518 S Catalpa Michaels Appraisal Service 350.00 1502 S Catalpa Michaels Appraisal Service 450.00 505 -909 W Indiana Ave. WITT Appraisal Services, Inc 700.00 1502 & 1518 Catalpa Michaels Appraisal Service 350.00 627 W Indiana Ave. Meridian Title Corporation 100.00 1514 S Scott St Meridian Title Corporation 28,031.29 1017 W Indiana Ave Meridian Title Corporation 100.00 1534 Prairie Ave DHA 574.50 Easement Diagram - Rink Riverside Site The Blue Water Group, Inc. 50,876.50 Ignition Park Sopko, Nussbaum, Inabnit & Legal Services Kaczmarek 450.00 Timothy & Martha Darr 1,700.00 Relocation Lewis Washington 1,250.00 Relocation Circle Lumber, Inc. 51.84 1503 Taylor Board DHA 10,010.00 Western Edge Oliver Industrial Ken Herceg & Associates, Inc 1,450.00 Sheridan Ave & Lincoln Way West Design Wightman Petrie 2,890.00 Former EMI Building - 2026 S Main Abonmarche 2,500.00 Brick Road - Dylan Dr Intersection DHA 8,815.00 Environmental Consulting Service Meridian Title Corporation 50,526.04 527 -529 W Indiana Meridian Title Corporation 27,889.75 1508 S Scott St. Meridian Title Corporation 37,412.00 605 W Indiana Ave Meridian Title Corporation 76,925.00 801 -807 W Indiana Meridian Title Corporation 24,291.81 801 -807 W Indiana Metropolitan Title 26,730.00 1510 S Chapin to 131 E Fairview Meridian Title Corporation 21,634.23 1510 S Chapin St. 2 South Bend Redevelopment Commission Regular Meeting — October 15, 2010 3. APPROVAL OF CLAIMS 324 AIRPORT AEDA continued Christopher B. Burke Indiana Michigan Power Wightman Petrie Jackson Trucking Excavating 1,724.50 Demo 236 Sample St. 7.00 501 Wenger St. Ignition Park Environmental Assessment & 3,350.00 Demolition 4,995.00 Demolition 1501 S. Taylor 420 FUND TIF DISTRICT -SBCDA GENERAL Indiana Michigan Power 384.80 LaSalle Hotel Hull & Associates, Inc 36,286.22 Olive Industrial Pk Phase Il DHA 4,490.00 SW Corner Jefferson & Main Baker & Daniels Sopko, Nussbaum, Inabnit & Kaczmarek Dave Waszak Wightman Petrie Wightman Petrie Downtown South Bend, Inc. Michiana Lock & Key Inc 2,414.00 Legal Services Legal Services 11,801.25 6,400.00 Transpo Site 632.50 Gates North Block 857.50 Fred's Transmission & Clutch 28,295.00 Downtown Beautification Program 159.85 Schillings Bldg 422 FUND TIF DISTRICT WEST WASHINGTON Sopko, Nussbaum, Inabnit & Legal Services Kaczmarek 135.00 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT Walsh & Kelly Inc. 134,706.44 Memorial Hospital Streetscape Improvements 429 FUND NORTHEAST DEVELOPMENT TIF AREA Baker & Daniels 3,288.00 Legal Services 433 FUND REDEVELOPMENT ADMIN GENERAL Baker & Daniels 2,182.25 Legal Services $ 658,193.27 Upon a motion by Mr. Downes, seconded by Mr. Varner COMMISSION APPROVED THE CLAIMS and unanimously carried, the Commission approved the SUBMITTED OCTOBER 15, 2010, AND ORDERED Claims submitted October 15, 2010, and ordered checks THE CHECKS TO BE RELEASED to be released. 3 South Bend Redevelopment Commission Regular Meeting — October 15, 2010 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Public Hearings THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS (1) Public Hearing on Resolution No. 2768, an additional appropriation resolution of the City of South Bend Redevelopment Commission (South Bend Central Development Area) Ms. Leonard noted that Resolution No. 2768 appropriates an additional $750,000 for projects staff is working on. The funds were not in the budget at the time of the appropriation at the beginning of the year because the county has been a year behind in its tax distribution. However, the city has received its first pay 2010 tax distribution on time and there are additional revenues we can appropriate. Mr. Inks noted that the public hearing file is complete, containing a copy of Resolution No. 2767 determining to make the appropriation and setting the public hearing on Resolution No. 2768; a copy of the Notice of Hearing; a copy of Resolution No. 2768, the subject of the public hearing; an affidavit from Jacki Krolczyk, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on September 24, 2010; and an affidavit from Richard Andrysiak, Classified Manager of the Tri- County News, that the Notice of :l South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) A. Public Hearings (1) continued... Hearing was published in that newspaper on September 24, 2010. Ms. Jones opened the public hearing for whoever wished to speak regarding Resolution No. 2768. 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. 2768 Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2768, an additional appropriation resolution of the City of South Bend Redevelopment Commission (South Bend Central Development Area) (3) Public Hearing on Resolution No. 2774 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2010, and ending December 31, 2010, including all outstanding claims and obligations, fixing a time when the same shall take effect. (Michigan Street Shops — Retail) Ms. Jennings noted that noted that the budget for the Michigan Street Shops has been revised because an additional $31,649 was needed for expenses in 2010 and the tax distribution has made money available. PUBLIC HEARING ON RESOLUTION NO. 2768 COMMISSION APPROVED RESOLUTION No. 2768, AN ADDITIONAL APPROPRIATION RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION (SOUTH BEND CENTRAL DEVELOPMENT AREA) South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) A. Public Hearings (3) continued... Mr. Inks noted that the public hearing file is complete, containing a copy of the Notice of Hearing; a copy of Resolution No. 2774, the subject of the public hearing; an affidavit from Jacki Krolczyk, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on September 24, 2010; and an affidavit from Richard Andrysiak, Classified Manager of the Tri- County News, that the Notice of Hearing was published in that newspaper on September 24, 2010. Ms. Jones opened the public hearing on Resolution No. 2774 for whoever wished to speak. 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. 2774. Mr. Downes asked what the additional expenses are which were not anticipated at the beginning of the year. Ms. Jennings responded that we did not anticipate the higher vacancy rate and the resulting reduced revenue. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2774 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2010, and ending December 31, N PUBLIC HEARING ON RESOLUTION NO. 2774 COMMISSION APPROVED RESOLUTION NO. 2774 APPROPRIATING MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2010, AND ENDING DECEMBER 31, 2010, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT. (MICHIGAN STREET SHOPS - RETAIL) South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) A. Public Hearings (3) continued... 2010, including all outstanding claims and obligations, fixing a time when the same shall take effect. (Michigan Street Shops — Retail) B. Tax Abatements (1) Resolution No. 2779 approving an application for real property tax deduction for property located at 1016 Notre Dame Avenue in the Northeast Neighborhood Development Area (J. Nicholas and Diane Entrikin) Mr. Mathia gave the staff report on the project. Nicholas and Diane Entrikin intend to construct an approximate 2,300 square foot, single - family home as their primary residence. The home will have three bedrooms, two and one -half bathrooms, a great room, a dining room, first floor laundry, two car garage and large front porch. The lower level will have a recreation room, bed room and bathroom. The project is part of the Notre Dame Housing Program and as such will follow the design specifications and standards required by that program. The cost of the home is estimated to be approximately $400,000. Total taxes to be abated during the five -year abatement period are estimated at $1,893. Taxes to be paid during the five -year abatement period are estimated at $20,544. Mr. Mathia noted that the property is properly zoned for the proposed project. The 7 South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) B. Tax Abatement (1) continued... property is located in the Northeast Neighborhood Development Area, which is a Tax Incremental Allocation Area; therefore, approval of the tax abatement petition by the South Bend Redevelopment Commission. The property is not located within the Northeast Neighborhood's residential TIF area. The property meets the qualifications for a five -year residential tax deduction under the tax abatement ordinance. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2779 approving an application for real property tax deduction for property located at 1016 Notre Dame Avenue in the Northeast Neighborhood Development Area (J. Nicholas and Diane Entrikin) C. South Bend Central Development Area (1) Addendum to Contract for Sale of Land with East Bank South Bend Development LLC (former Rink Riverside site) Mr. Relos noted that on March 5, 2010 the Commission approved a Contract for Sale of Land with East Bank Development LLC for the former Rink Riverside site at Sycamore and Colfax Streets. The Addendum to Contract for Sale of Land is before the Commission today because the original Contract required the Commission to approve the final site plan and building specifications. COMMISSION APPROVED RESOLUTION NO. 2779 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1016 NOTRE DAME AVENUE IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA (J. NICHOLAS AND DIANE ENTRIKIN) South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... The original Contract for Sale of Land called for the city to reinvest the $10,000 sale proceeds back into the development for a new retaining wall along the western property line. Instead of trying to coordinate that construction with development of the property, staff thought it would be better to let the developer do all of the construction and his own coordination. Therefore, the sale price is being lowered to $1.00 and the developer will construct the retaining wall. Mr. Relos pointed out other changes in the Addendum. The riverwalk encroaches on the property along its river frontage; therefore, Danch Harper has written a legal description for an easement for the riverwalk which is included in the Contract for Sale of Land. Also, there were ten feet along the Colfax boundary of the property that were split off years ago. That ten feet isn't needed by the city for right -of way, so it is being deeded to East Bank Development LLC. The Contract now also contains site plans and building specifications. Mr. Relos noted that the developer expects to begin construction and complete basements for six units this fall. Mr. Matthews, East Bank Development, noted that when he first approached the Commission he promised to construct three units in phase one. Phase one now consists of six units along the entire river front. 6 South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... Three of the units are under contract, with the fourth expected to be under contract next week. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Addendum to Contract for Sale of Land with East Bank South Bend Development LLC (former Rink Riverside site) (2) Resolution No. 2757 approving and authorizing the Execution of an Addendum to the Master Agency Agreement (Jefferson/Main Property Improvements) Mr. Relos noted that the Addendum to Master Agency Agreement for the Jefferson / Main Property Improvement Project is for completion of the landscaping of the Commission owned parcels on the southwest corner of Jefferson and Main Streets. This project will improve the appearance of the corner by removing the steel posts, concrete barriers, and various elements which are no longer used. New top soil and hydro seeding will be applied to the northern most lot, with three cement pads containing two benches each will be added. The middle daily parking lot's entrance will be landscaped, an approach no longer used will be removed, and new mulch and plantings will be added to the current bed 10 COMMISSION APPROVED THE ADDENDUM TO CONTRACT FOR SALE OF LAND WITH EAST BANK SOUTH BEND DEVELOPMENT LLC (FORMER RINK RIVERSIDE SITE South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (2) continued... that runs along the western boundary of all three of these lots. Staff recommends approval of Resolution No. 2757. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2757 approving and authorizing the Execution of an Addendum to the Master Agency Agreement (Jefferson/Main Property Improvements) (3) Proposal for roof repair at 237 N. Michigan St. (LaSalle Hotel) Ms. Jennings showed the Commission a picture of the condition of the LaSalle Hotel roof. Staff has one proposal for repairing it at a cost of $5,500. Staff would like to obtain two more proposals. She asked the Commission to authorize staff to accept the lowest of three quotes in an amount not to exceed $6,000 so that the project can move forward promptly. Upon a motion by Mr. Varner, seconded by Ms. King and unanimously carried, the Commission authorized staff to secure two additional quotes for roof repair on the LaSalle Hotel and to award to the lowest bidder in an amount not to exceed $6,000. (4) Proposal for appraisal of 111 S. St. Joseph Street. (College Football Hall of Fame building) 11 COMMISSION APPROVED RESOLUTION N0.2757 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT (JEFFERSON/MAIN PROPERTY IMPROVEMENTS) COMMISSION AUTHORIZED STAFF TO SECURE TWO ADDITIONAL QUOTES FOR ROOF REPAIR ON THE LASALLE HOTEL AND TO AWARD TO THE LOWEST BIDDER IN AN AMOUNT NOT TO EXCEED $6,000 South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (4) continued... Mr. Relos noted that as part of the search for an adaptive reuse for the College Football Hall of Fame building, staff feels it would be prudent to have an appraisal of the building in hand. Because of the unique nature of this building, the cost to have this appraisal done is over the Commission's contract limit, and therefore needs Commission approval to proceed. R.E. Pitts has submitted a proposal in the amount of $5,500. Staff requests approval of the proposal. Mr. Downes asked how an appraisal could be done on such a building. Mr. Relos noted that he had discussed that question in detail with Mr. Pitts. The appraisal will be done as though the user will use the building as it is, similar to an appraisal of an old church that may be used for a business, or as a residence, but the appraisal is done of the building as a church. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission accepted the proposal from R.E. Pitts for appraisal of the College Football Hall of Fame building at 111 S. St. Joseph Street. (5) Resolution No. 2789 approving and authorizing the Execution of an Addendum to the Master Agency Agreement (Jefferson & Niles Streetscape Modernization and Intersection Improvements) 12 COMMISSION ACCEPTED THE PROPOSAL FROM R.E. PITTS FOR APPRAISAL OF THE COLLEGE FOOTBALL HALL OF FAME BUILDING AT 1 1 1 S. ST. JOSEPH STREET South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (5) continued... Ms. Jones noted that the Agenda referred to this resolution as Resolution No. 2760 in error. It is Resolution No. 2789. Mr. Relos noted that the Commission previously accepted a proposal from Abonmarche to do planning and design of Jefferson east of the river to St. Peter St., looking at infrastructure improvements. Since the original scope of services was accepted, there have been additional things staff would like added to the contract. The corner of Jefferson and St. Louis experiences a lot of flooding problems. The additional work would be to study and resolve the drainage issues, and to design changes on Niles from Jefferson to LaSalle, including eliminating the bump -outs. The fee for the additional work is $8,100. The original proposal was in the amount of $120,000. Ms. King asked if construction costs for the infrastructure improvements will be in addition to the $120,000. Mr. Inks responded that they would be in addition. The city's Department of Public Works will be funding the construction. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2789 approving and authorizing the Execution of an Addendum to the Master Agency Agreement (Jefferson & Niles Streetscape Modernization and Intersection Improvements). 13 COMMISSION APPROVED RESOLUTION No. 2789 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT (JEFFERSON & NILES STREETSCAPE MODERNIZATION AND INTERSECTION IMPROVEMENTS) South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (6) Approval of Michigan Street Shops Holiday Retail Program. Mr. Inks noted that these are challenging times to lease retail space. The Holiday Retail Program is an attempt to be creative about doing so. Mr. Mariani explained that Downtown South Bend met with Michigan Street shop owners and members of the real estate community about how to improve the real estate environment downtown. They came up with a proposal for "pop -up shops ": the idea of leveraging our holiday foot traffic in November and December to bring focus to our available retail spaces and to mine some prospects for these retail spaces. The idea has been tried successfully in some other downtowns. Our downtown merchants really liked the idea. They'd like to have some neighbors. We recognize there will be challenges for the Legal Department to address about how to memorialize the relationship of this "free space." Downtown South Bend and city staff feel the idea is aggressive, business friendly and is what is needed right now to build the economy back up. Mr. Downes said he thinks this is a great idea. He asked if the intent would be to actually write leases with no rent. Mr. Mariani said he would talk to Mr. Meteiver to discuss whether a lease is the vehicle, or a memorandum of understanding. Mr. Downes wanted to be sure tenants would 14 South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (6) continued... carry their own insurance, etc. Mr. Inks said that would be part of the structure. Mr. Mariani said some East Bank Village merchants have expressed interest in a shared storefront for several East Bank Village merchants. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission accepted the proposal for a Michigan Street Shops Holiday Retail Program. D. Airport Economic Development Area (1) Proposal for refurbishment of former EMI, Inc. Building and grounds (2020 South Main St.) Mr. Relos noted the Commission acquired the property at tax sale and has the deed. Over the past several months, the staff has been planning for parallel tracks for reuse of the EMI property: demolition and rehabilitation. He gave a report on the status of each track. Option 1: Site Demolition/New Shovel Ready Parcel The Board of Public Works opened demolition bids for the site on September 13. The bids ranged from $176,206 to $217,328. The demolition plan would clear the entire site, replace all perimeter curb and walk. The upside of this option would be to have a 15 COMMISSION ACCEPTED THE PROPOSAL FOR A MICHIGAN STREET SHOPS HOLIDAY RETAIL PROGRAM South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) continued... shovel -ready site for new development. The downside is that the site would be a narrow parcel, half a block wide, and because of adjacent uses the reuse would most likely be industrial or heavy commercial. At this point, new development on the parcel is uncertain in the near term. Option 2: Site Rehabilitation /Site Reuse A site assessment of the building was completed by Wightman Petrie who determined that the structure and foundation of the building was solid, but there were environmental concerns, as well as basic building issues that would need to be addressed before the site could be reused for an industrial use. The building size, especially with the high bay section, appears to be marketable for reuse, but because of the condition of the building and site, much work would need to be done to make the site development ready. Wightman Petrie estimated it would cost approximately $459,800 to clean and rehab the structure and make associated site improvements to the property. The Commission was supplied with a copy of the budget estimate for cleanup. The upside for reuse is that reuse costs would be less than new construction. The downside is that the building dimensions are fixed and some costs for cleanup and rehab might become lost costs for a period of time while the property is on the market. Recommendation Staff recommends a hybrid approach to the lull South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) continued... site. Staff proposes to keep the building and make some minor repairs like sealing the roof and the fagade, cleaning and clearing the interior of the building, basic site demolition of the property to the north and south. Once this work is complete, the staff would recommend placing the property on the market with some minor conditions to encourage a sale of the property. There has been some interest in the property by a nearby business. As part of this recommendation, staff has requested a professional service proposal from Wightman Petrie to prepare refurbishment plans and specifications for the structure. Building improvements would be bid yet this year with site improvements to be bid and made in winter /spring 2011. Wightman Petrie's proposal is in the amount of $21,315.00. Staff requests approval at a not -to- exceed limit of $23,000. Ms. King asked if the cost of making the improvements is included in the $23,000. Mr. Relos responded that they are not. An estimate for the actual improvements is $75,000. Ms. King felt that a fee of $23,000 is high for writing specifications for a $75,000 job. Mr. Relos agreed that it seems so. He suggested there might be some environmental testing included in the fee. Mr. Downes summarized the cost choices as 17 South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) continued... follows: We think it's going to cost $100,000 to clean it out and stabilize it. It would cost at least $176,000 to tear it down. We think it's going to cost $460,000 if someone wants to use it. Mr. Downes asked if we find a use for it and have to spend $459,000 to rehab it, would the $459,000 be reduced by some of the $75,000 already spent? Mr. Inks responded that it would. The roof repairs may be wasted if we do an entire roof replacement, but cleaning up the site would have to be done either way. Mr. Varner would like staff to talk further with the potential user to better determine the level of their interest. He would prefer to postpone a decision until we are fairly certain the user's interest is strong. He would hate to put the money into stabilizing the building, only to demolish it later because the potential user was only making an inquiry. Mr. Relos responded that Mr. Schalliol has been discussing potential reuse with the business and feels that these repairs would help the business move forward. It's hard to envision reuse of the building in the condition it is in. Mr. Varner said he doesn't believe anyone would pay $459,000 to reuse the building, even if it is cosmetically improved. He suggested cutting a deal with the user before spending the money. He recommended tabling the item until we know more. 18 South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) continued... Upon a motion by Mr. Varner, seconded by Ms. King and unanimously carried, the Commission tabled Item 6.D.(1) until further notice. (2) Amendment to Christopher Burke Engineering contract for demolition of 236 Sample Street. Mr. Relos noted that on September 17, 2010, the Commission approved a Professional Services Agreement with Christopher Burke Engineering (CBE) to prepare demo specs and environmental services for the demolition of the cement block building at 236 E. Sample St. The building is next to Ivy Tech's administrative offices at 250 E. Sample St. In planning for the demolition of 236 E. Sample and considering the new facade that was put on 250 E. Sample (the ITOSS building), staff noticed that there is no sidewalk on the west side of Carroll Street. Ivy Tech is putting in new sidewalk and curbs in connection with its parking improvements at the former Habitat Restore. The Professional Services Agreement Amendment from Christopher Burke Engineering will provide the necessary topographic survey and design services to bid out the additional curb and sidewalk work. The fee for this additional work is $3,803. Staff requests approval to complete the transformation of this section of E. Sample St. 19 COMMISSION TABLED ITEM 6.D.(1) UNTIL FURTHER NOTICE South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (2) continued... Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Amendment to Christopher Burke Engineering contract for demolition of 236 Sample Street for the fee proposed (3) Administrative Settlement for acquisition of 1513 S. Catalpa St. Mr. Relos noted that on August 6, 2010 the Commission set the acquisition offering price for 1513 S. Catalpa at $25,700, the average of two independent appraisals. The property is a rental. The income approach values the property at $27,500. The owner would not be able to replace the property at either appraised value. The home is a two - story, three- bedroom, 1,200 sft, home with enclosed front porch, back deck and fenced yard. After much negotiation, the property owner has agreed to accept $35,000, an amount they feel is adequate to replace the property with a similar income producing property. Staff recommends approving the administrative settlement of $9,300. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved the administrative settlement of $9,300 for acquisition of 1513 S. Catalpa St. (4) Resolution No. 2780 related to acquisition of property in the Airport Economic Development Area (1503 -1505 S. Kemble Ave.) 20 COMMISSION APPROVED THE AMENDMENT TO CHRISTOPHER BURKE ENGINEERING CONTRACT FOR DEMOLITION OF 236 SAMPLE STREET FOR THE FEE PROPOSED COMMISSION APPROVED THE ADMINISTRATIVE SETTLEMENT OF $9,300 FOR ACQUISITION OF 1513 S. CATALPA ST. South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (4) continued... Mr. Relos noted that the owners of 1503- 1505 S. Kemble Ave. contacted staff with an interest in selling their property. Resolution No. 2780 sets the acquisition value of the property at $35,500, the average of two independent appraisals. The acquisition value is the average value as determined by two independent appraisals. Staff requests approval of Resolution No. 2780. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2780 related to acquisition of property in the Airport Economic Development Area (1503- 1505 S. Kemble Ave.) (5) Resolution No. 2781 related to acquisition of property in the Airport Economic Development Area (601 W. Indiana Ave.) Mr. Relos noted that the owners of 601 W. Indiana Ave. contacted staff with an interest in selling their property. Resolution No. 2781 sets the acquisition value of the property at $35,000, the average of two independent appraisals. Staff requests approval of Resolution No. 2781. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2781 related to acquisition of property in the Airport Economic Development Area (601 W. Indiana Ave.) 21 COMMISSION APPROVED RESOLUTION NO. 2780 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (1503 -1505 S. KEMSLE AVE.) COMMISSION APPROVED RESOLUTION NO. 2781 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (601 W. INDIANA AVE.) South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (6) Resolution No. 2782 related to acquisition of property in the Airport Economic Development Area (627 W. Indiana Ave.) Mr. Relos noted that the owners of 627 W. Indiana Ave. contacted staff with an interest in selling their property. Resolution No. 2782 sets the acquisition value of the property at $34,750, the average of two independent appraisals. Staff requests approval of Resolution No. 2782. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2782 related to acquisition of property in the Airport Economic Development Area (627 W. Indiana Ave.) (7) Resolution No. 2783 related to acquisition of property in the Airport Economic Development Area (905 -909 W. Indiana Ave. Mr. Relos noted that the owners of 905 -909 W. Indiana Ave. contacted staff with an interest in selling their property. Resolution No. 2783 sets the acquisition value of the property at $35,250, the average of two independent appraisals. Staff requests approval of Resolution No. 2783. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2783 related to acquisition of property in the Airport Economic Development Area (905- 909 W. Indiana Ave. 22 COMMISSION APPROVED RESOLUTION N0.2782 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (627 W. INDIANA AVE.) COMMISSION APPROVED RESOLUTION NO. 2783 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (905- 909 W. INDIANA AVE. South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (8) Resolution No. 2784 related to acquisition of property in the Airport Economic Development Area (1509 S. Kendall St.) Mr. Relos noted that the owners of 1509 S. Kendall St. contacted staff with an interest in selling their property. Resolution No. 2784 sets the acquisition value of the property at $25,500, the average of two independent appraisals. Staff requests approval of Resolution No. 2784. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2784 related to acquisition of property in the Airport Economic Development Area (1509 S. Kendall St.) (9) Resolution No. 2785 related to acquisition of property in the Airport Economic Development Area (509 W. Indiana Ave.) Mr. Relos noted that the owners of 509 W. Indiana Ave. contacted staff with an interest in selling their property. Resolution No. 2785 sets the acquisition value of the property at $24,000, the average of two independent appraisals. Staff requests approval of Resolution No. 2785. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2785 related to acquisition of property in the Airport Economic Development Area (509 W. Indiana Ave.) 23 COMMISSION APPROVED RESOLUTION NO. 2784 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (1509 S. KENDALL ST.) COMMISSION APPROVED RESOLUTION NO. 2785 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (509 W. INDIANA AVE.) South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (10) Resolution No. 2787 related to acquisition of property in the Airport Economic Development Area (1502 S. Catalpa St.) Mr. Relos noted that the owners of 1502 S. Catalpa St. contacted staff with an interest in selling their property. Resolution No. 2787 sets the acquisition value of the property at $11,250, the average of two independent appraisals. Staff requests approval of Resolution No. 2787. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2787 related to acquisition of property in the Airport Economic Development Area (1502 S. Catalpa St.) (l 1) Administrative Settlement for acquisition of 1502 S. Catalpa St.) Mr. Relos noted that the offering price for 1502 S. Catalpa was $11,250. The owner leases the home to a family member. He doesn't believe he could purchase an adequate house for under $12,000. The owner is willing to sell for $25,000. Mr. Relos felt that, although the administrative settlement of 13,750 was more than double the offering price, it was still not excessive under the circumstances. He recommended approval. Ms. King asked if there would be other expenses in addition to the administrative settlement. Mr. Relos responded that there would be relocation expenses for the tenant of about $1,700 - $2,300. 24 COMMISSION APPROVED RESOLUTION NO. 2787 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (1502 S. CATALPA ST.) South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (11) continued... Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE ADMINISTRATIVE Mr. Varner and unanimously carried, the SETTLEMENT OF $13,750 FOR ACQUISITION OF Commission approved the Administrative 1502 S. CATALPA ST. Settlement of $13,750 for acquisition of 1502 S. Catalpa St. (12) Resolution no. 2788 related to acquisition of property in the Airport Economic Development Area (1518 S. Catalpa St.) Mr. Relos noted that the owners of 1518 S. Catalpa St. contacted staff with an interest in selling their property. Resolution No. 2788 sets the acquisition value of the property at $11,750, the average of two independent appraisals. Staff requests approval of Resolution No. 2788. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution no. 2788 related to acquisition of property in the Airport Economic Development Area (1518 S. Catalpa St.) (13) Administrative Settlement for acquisition of 1518 S. Catalpa St.) Mr. Relos noted that the offering price for 1518 S. Catalpa was $11,700. The owner is the same owner as in Item 6.D.(11). He also leases this home to a family member. Again, he doesn't believe he could purchase an adequate house for under $12,000. The owner is willing to sell this home also for $25,000. Mr. Relos felt that, although the 25 COMMISSION APPROVED RESOLUTION NO. 2788 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (1518 S. CATALPA ST.) South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (13) continued... administrative settlement of 13,300 was more than double the offering price, it was still not excessive under the circumstances. He recommended approval. Mr. Relos noted that there would be relocation expenses for this tenant as well of about $1,700 - $2,300. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE ADMINISTRATIVE Mr. Varner and unanimously carried, the SETTLEMENT OF $13,300 FOR ACQUISITION OF Commission approved the Administrative 1518 S. CATALPA ST. Settlement of $13,300 for acquisition of 1518 S. Catalpa St. (14) Proposal for planning services in the Airport Economic Development Area (South Shore Railroad Easement through Airport Industrial Park) Mr. Relos noted that there is an old South Shore right of way that runs from Bendix up through the Airport Industrial Park. It isn't clear who owns the right of way. McCormick Flavor Division wants to expand their facility, but is hindered by the uncertainty of ownership. Staff has solicited a proposal from Danch, Hamer & Associates, Inc., to investigate the easement, determine true ownership of the easement and any associated land parcels, define potential reuse of the corridor, and identify any challenges. The estimated cost of the services for the project would be in the range of $5,450 to $5,780 plus the cost of 26 South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (14) continued... copies of the recorded documents. Due to the potential need for title work or other related copy costs, staff requests approval of a not -to- exceed amount of $7500 for this project. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission accepted the proposal from Danch Harper Associates for the scope of service proposed and a cost not to exceed $7,500. (15) Resolution No. 2790 approving and authorizing the Execution of an Addendum to the Master Agency Agreement (Oliver Industrial Park Improvements) Mr. Relos noted that Resolution No. 2790 approves an Addendum To Master Agency Agreement for the Oliver Industrial Park Improvements. The scope of the park improvements include the Oliver Plow Memorial, the pedestrian trail, and park entry signage. The cost estimate for this work was $750,000. On September 11, the Board of Public Works opened bids for the project. Upon approval of Resolution No. 2790 staff will request the Board to award to the following vendors: • LL Geans Construction $414,826.25 • Fuerbringer Landscaping $74,882.00 27 COMMISSION ACCEPTED THE PROPOSAL FROM DANCH HARNER ASSOCIATES FOR THE SCOPE OF SERVICE PROPOSED AND A COST NOT TO EXCEED $7,500 South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (15) continued... The total scope of the project is $489,708.25. Mr. Relos noted that work will begin yet this fall but probably not be completed until summer 2011. A dedication ceremony will be held when everything is complete, including the sculptural elements being developed by Tuck Langland. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2790 approving and authorizing the Execution of an Addendum to the Master Agency Agreement (Oliver Industrial Park Improvements) (16) Resolution No. 2791 approving the fair market value of property in the AEDA (1313 Prairie Ave.) Mr. Relos noted that items 6.D.(16), (17), and (18) are all related. He noted that the Commission purchased 1313 Prairie Ave. in order to prevent an incompatible use from locating there. A willing buyer and seller had made a purchase agreement. The buyer was a towing company. Since the Commission was relocating Hamilton Towing from the east side of Ignition Park, it didn't want a towing company to locate on the west side. Staff found a suitable location for the towing company and purchased 1313 Prairie ourselves so as to not hurt the property owner. There is now another business with a compatible use interested in the site. The Commission needs to go 28 COMMISSION APPROVED RESOLUTION NO. 2790 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT (OLIVER INDUSTRIAL PARK IMPROVEMENTS) South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (16) continued... through the disposition process to sell the property. Resolution No. 2791 sets the fair market value for 1313 Prairie Avenue at $189,000. The property is approximately 2 acres and contains a 6,432 sft building. The property is zoned VI — General Industrial. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2791 approving the fair market value of property in the AEDA (1313 Prairie Ave.) (17) Approval of Bid Specifications and Design Considerations for 1313 Prairie Ave. Mr. Relos noted that the bid specifications are as follows: All offers must meet the minimum price of $189,000.00. The site purchase must include the entire + 2.04 Acre parcel being bid and must include the adaptive reuse of the building. The building and property are being offered in an "As Is" condition. The required use for the Parcel is Light or General Industrial or Commercial - Industrial,in accordance with the "GI" General Industrial District zoning designation. Strong emphasis will be placed during the review process on compatibility with the goals and objectives of Ignition Park. All proposals for reuse of the disposition parcel must include a basic reuse 29 COMMISSION APPROVED RESOLUTION No. 2791 APPROVING THE FAIR MARKET VALUE OF PROPERTY IN THE AEDA (1313 PRAIRIE AVE.) South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (17) continued... plan for the existing building and site and a project timeline detailing aspects of the site redevelopment or site improvements. All other provisions of the Airport Economic Development Area Development Plan must be met. Bidders must present their proposals at the November 19, 2010, Regular Meeting of the Redevelopment Commission. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Bid Specifications and Design Considerations for 1313 Prairie Ave. (18) Authorization to publish Notice of Intended Disposition of Property with publication dates of October 22, 2010 and October 29, 2010, and Receipt of Bids at 10:00 a.m., November 19, 2010. (1313 Prairie Ave.) Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission authorized publication of the Notice of Intended Disposition of Property with publication dates of October 22, 2010 and October 29, 2010, and Receipt of Bids at 10:00 a.m., November 19, 2010. (1313 Prairie Ave.) (19) Staff report on off -site improvements to support proposed Senior Housing Development. (LaSalle Square) Mr. Inks noted that the Commissioners 30 COMMISSION APPROVED THE BID SPECIFICATIONS AND DESIGN CONSIDERATIONS FOR 1313 PRAIRIE AVE. COMMISSION AUTHORIZED PUBLICATION OF THE NOTICE OF INTENDED DISPOSITION OF PROPERTY WITH PUBLICATION DATES OF OCTOBER 22, 2010 AND OCTOBER 29, 2010, AND RECEIPT OF BIDS AT 10:00 A.M., NOVEMBER 19, 2010. (1313 PRAIRIE AVE.) South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (19) continued... received copies of letters that are expected to be sent in support of the tax credit application for a Senior Housing Development at LaSalle Square. Mr. Vitton noted that the Indiana Housing and Community Development Authority administers a tax credit program. They evaluate projects by scoring them with points. The letters will provide additional points to the project. One letter outlines the Commission's property acquisition that supports the project. Another commits to acquiring the property for the project. With the additional twenty points these letters will secure, the project is very likely to receive the tax credits. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission authorized the Redevelopment Director to sign the support letters for the proposed Senior Housing Development. (LaSalle Square) E. West Washington - Chapin Development Area There was no business in the West Washington - Chapin Development Area. F. South Side Development Area There was no business in the South Side Development Area. 31 COMMISSION AUTHORIZED THE REDEVELOPMENT DIRECTOR TO SIGN THE SUPPORT LETTERS FOR THE PROPOSED SENIOR HOUSING DEVELOPMENT. (LASALLE SQUARE) South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) 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. I. Ratification of Services Contracts Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission ratified the Services Contracts approved by staff since October 1, 2010. J. Other (1) Engagement Letter from Sopko, Nussbaum, Inabnit & Kaczmarek. Ms. Leonard noted that the Commission 32 COMMISSION RATIFIED THE SERVICES CONTRACTS APPROVED BY STAFF SINCE OCTOBER 1, 2010 Commission Role in Service Contract Staff Transaction Contractor Provided Amount Member 1514S Acquisition Meridian Title $100 Relos Scott Title Corp. Work 1514S Acquisition David M. Appraisal $550 Relos Scott Witt 1514S Acquisition Michaels Appraisal $62; Relos Scott Appraisal Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission ratified the Services Contracts approved by staff since October 1, 2010. J. Other (1) Engagement Letter from Sopko, Nussbaum, Inabnit & Kaczmarek. Ms. Leonard noted that the Commission 32 COMMISSION RATIFIED THE SERVICES CONTRACTS APPROVED BY STAFF SINCE OCTOBER 1, 2010 South Bend Redevelopment Commission Regular Meeting — October 15, 2010 6. NEW BUSINESS (CONT.) J. Other (1) continued... occasionally uses outside legal counsel to assist in projects. We keep track of the claims from Sopko, Nussbaum, Inabnit and Kaczmarek and find that we are at the end of our current engagement letter of $60,000, so we are requesting an amendment to increase it to allow them to continue to assist us. Ms. King asked if the $60,000 is year -to- date. Ms. Leonard responded that it is since March 4, 2009. Upon a motion by Mr. Varner, seconded by Ms. King and unanimously carried, the Commission approved the Engagement Letter from Sopko, Nussbaum, Inabnit & Kaczmarek. K. Ratification of Temporary Use Agreements COMMISSION APPROVED THE ENGAGEMENT LETTER FROM SOPKO, NUSSBAUM, INABNIT & KACZMAREK Use /Agency Lot Event Dates of Use T Engineer Support 325 & 329 S. Lafayette Toys for Tots October 6, 2010 — Battalion Engineer Blvd. (former Schillings February 1, 2011 Company B Camera Store) Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission ratified the Temporary Use Agreements approved by staff since October 1, 2010. 33 COMMISSION RATIFIED THE TEMPORARY USE AGREEMENTS APPROVED BY STAFF SINCE OCTOBER 1, 2010 South Bend Redevelopment Commission Regular Meeting — October 15, 2010 7. PROGRESS REPORTS Mr. Inks noted that there is a project to update the Chase PROGRESS REPORTS Tower and convert part of it to senior living. The proposal anticipates a request to the Redevelopment Commission for a pledge of TIF to support the project. At an Economic Development Commission (EDC) meeting to immediately follow the Commission meeting, the EDC will consider starting a Recovery Zone Bond (Private Activity Bond) process that needs to be completed by the end of 2010. We have asked the developer to attend the Commission meeting to provide an overview of the project. No action will be taken today. Mr. Shanahan, bond counsel for Dillingham Hill RE LLC, said that since 1986 the law for Private Activity Bonds limited their use to manufacturing facilities. As part of the Recovery Act, Congress extended the program to what it was before 1986 when you could use them for most anything. The bonds are tax exempt, so the developer can borrow at a lower cost, making the project more affordable and encouraging developers to do things they might not otherwise do if they had to pay the going rate on a taxable basis. The city has no liability for the bonds. They will be paid by the developer. The city is offering tax increment to encourage the project which will make the sale of the bonds more attractive and easier to sell. The Recovery Act limited the amount of bonds that can be sold in 2009 and 2010. Indiana had some $460,000,000; South Bend had over $7,000,000; St. Joseph County had $13,000,000 or so. Very little has been done with that availability because no one can sell the bonds: investors are nervous. No one wants to lend money for a project that's not there. This project has the advantage of having a building that's already there, already worth something. With the city's pledge of incremental tax revenues, plus the company's revenues from operating the facility, that makes this project attractive enough we think we can 34 South Bend Redevelopment Commission Regular Meeting — October 15, 2010 7. PROGRESS REPORTS sell the bonds. Mr. Terry Gaouette„ CPA for the development group, spoke about the financing for the project. The trend now in central cities is to diversify revenue streams. Adding additional living opportunities in the downtown also increases vitality and jobs. The Chase Tower is an icon in the community, built in the 1960s. Mr. Gaouette acknowledged the businesses that have offices in the building now. He indicated they would remain. South Bend does not have an upscale hotel right now, so the developer is anticipating remaking the hotel to an Hotel Indigo, a high end hotel. That hotel brand has done very well in emerging cities of our size. A third element of the project would be senior living. Often seniors like to be in the downtown where there is vibrant activity. Anvic is a company that has brought all these elements together, including memory and dementia care, additional day nursing services. They anticipate the hotel and senior care would create 100 jobs in the downtown. Dillingham Hill RE LLC was scheduled today to take the first step in borrowing about $31.8 million for the $43.6 million project through bonds that will be issued by the City of South Bend, St. Joseph County and the Indiana Finance Authority. The three governmental units would bear no liability should Dillingham default on the loans. They would simply be allowing the developer to finance the project with municipal bonds, which generate income tax -free interest for investors. The senior living facility, called Anvic Senior Living Center, will be a state -of -the -art community for seniors requiring a variety of services, including nursing care, memory care, programming services for the elderly, and nutritional and lifestyle services. It would occupy part of the Ramada space. The tower's exterior will see extensive remodeling. 35 South Bend Redevelopment Commission Regular Meeting — October 15, 2010 7. PROGRESS REPORTS Dillingham hopes to use $7.5 million in city bonds, $13.5 million in county bonds and $10.7 million in bonds issued by the state. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Friday, November 5, 2010 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Ms. King made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 11:40 a.m. Donald E. Inks, Director 36