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HomeMy WebLinkAbout2. Minutes 11/2/10 MeetingSOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULED REGULAR MEETING November 2, 2010 10:00 a.m. Presiding: Marcia I. Jones, President 1. ROLL CALL Members Present: Members Absent: Legal Counsel: 227 West Jefferson Boulevard Ms. Marcia Jones, President Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Dr. David Varner, Vice President Ms. Stephanie Spivey Mr. Lawrence Meteiver, Esq. South Bend, Indiana Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. Robert Mathia, Economic Development Specialist Mr. David Relos, Economic Development Specialist Ms. Ann Kolata, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mayor Stephen Luecke Mr. Tom Price, Mayor's Office Mr. Jeff Gibney, Executive Director Mr. Gregg Zientara, Controller Mr. Joseph Kernan, South Bend Silverhawks Ms. Lynn Kachmarik, South Bend Silverhawks Ms. Nicolle Meyer, South Bend Silverhawks Mr. David Rafinski, Wightman Petrie Ms. Virginia Calvin, Ivy Tech Mr. Bob Placek, Ivy Tech Ms. Barbara Duncanson, Ivy Tech Ms. Geri Hathaway, Ignition Park Mr. Randy Rompola, Baker & Daniels Mr. Jeff Parrott, South Bend Tribune South Bend Redevelopment Commission Rescheduled Regular Meeting — November 2, 2010 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, October 15, 2010. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, October 15, 2010. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, OCTOBER 15, 2010 Redevelopment Commission Claims submitted November 2, 2010 for approval. 305 FUND SBCDA BOND Paul Fujawa Engineers, Inc. Architecture Design Group Wightman Petrie 324 AIRPORT AEDA Plews Shadley Racher & Braun LLP Tuck Langland IDEM South Bend Parks & Recreation Dept DLZ Indiana Michigan Power Nipsco Michaels Appraisal Service Phifer Environmental Services, LLC Innovation Park @ Notre Dame Hathaway 2, Inc. The Lakota Group WITT Appraisal Services, Inc Meridian Title Corporation South Bend Water Works Scott & Kimberle Izdepski 11,600.00 SB St. Jos. & Wayne P.G. Fagade 4,200.00 Century Center Island Park Pavilion 314,346.82 Coveleski Design Work 4,262.93 Cost Recovery Studebaker /Olive Plow 45,000.00 Payment for James Oliver & Oliver Plow Sculptures 733.00 Reimbursement all Administrative Costs 4,780.00 Lawn Maintenance 8,416.52 Studebaker; Pine /Olive Rds 64.22 1313 Prairie Ave 6.49 1313 Prairie 975.00 1514 S. Scott; 1526 Catalpa 4,545.00 Phase II Env. Site Assessment - 1521 & 1527 Kendall 630.00 Office Space 6,277.00 Ignition Park - September 2010 billing 10,578.80 Ignition Park - PUD 8/16 thru 9/30/2010 350.00 1526 S. Catalpa 73,866.50 1526 S. Catalpa; 521 W. Indiana 105.41 1313 Prairie 12,312.50 Olive Road/US 20 Reconstruction 2 South Bend Redevelopment Commission Rescheduled Regular Meeting — November 2, 2010 3. APPROVAL OF CLAIMS (CONT.) 420 FUND TIF DISTRICT -SBCDA GENERAL Michiana Lock & Key 219.50 LaSalle Hotel Rose Pest Solution 96.00 LaSalle Hotel All -Phase Electric 2,872.80 CB Richard Ellis 1,673.17 LaSalle Hotel South Bend Parks & Recreation Dept 695.00 Lawn Maintenance Ampco System Parking 2,061.66 St Joseph St Surface / 225 Main St Architecture Design Group Adaptive Reuse - College Football Hall 3,622.00 of Fame Indiana Michigan Power 223.88 325 S. Lafayette & 329 S. Lafayette 426 FUND TIF DISTRICT - CENTRAL MEDICAL DLZ 5,718.75 Walsh & Kelly Carl Walker 131,454.63 4,188.18 422 FUND TIF DISTRICT WEST WASHINGTON South Bend Parks & Recreation Dept 150.00 430 FUND SOUTHSIDE DEVELOPMENT TIF AREA fl South Bend Parks & Recreation Dept 150.00 Meridian Title Corporation 135,542.67 $ 791,718.43 Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved the Claims submitted November 2, 2010, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 3 Michigan Streetscape Memorial Hospital Streetscape Improvements Bartlett Fagade Renovation Lawn Maintenance Lawn Maintenance Acquisition & relocation of 4215 S. Main COMMISSION APPROVED THE CLAIMS SUBMITTED NOVEMBER 2, 2010, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Rescheduled Regular Meeting — November 2, 2010 5. OLD BUSINESS A. South Bend Central Development Area (1) Resolution No. 2744 approving and accepting a counter offer for the acquisition of property in the South Bend Central Development Area. On August 6, 2010, the Redevelopment Commission approved Resolution No. 2743 which set the acquisition offering price for 502 W Western Avenue. The property is a single story commercial building located on the southwest corner of Western Avenue and William Street and was the former location of Harmon Glass. Over the past several years, the Commission has acquired several key parcels located within the Coveleski Park planning area. As the plans for Coveleski Park are now coming together, there are still a few key parcels that need to be acquired to complete the master plan acquisitions. The property at 502 Western is a corner property that will be at one of the main entry points into the stadium The Commission owns the northwest quadrant which previously housed Fred's Transmission and the southeast corner which previously housed Ritchie's Radiator. Acquisition of the southwest corner is important to stabilization of the frontage along Western Avenue. The property west of the 502 site has been redeveloped by Granger Community Church and other partners and proper tenanting of that space will help to advance their efforts as well as provide a new retailer in the project area. Staff has spent considerable time working M South Bend Redevelopment Commission Rescheduled Regular Meeting — November 2, 2010 with the property owner of 502 Western to come to agreement on a purchase price. When the property was appraised in 2008 the value was $85,750. The owner has offered $150,000. In comparison, the Commission paid $190,000 for Ritchie's Radiator, $262,500 for Fred's Transmission and $130,000 for the Son's of Israel Synagogue. Staff recommends accepting the counter offer for this important parcel. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2744 approving and accepting a counter offer in the amount of $150,000 for the acquisition of property in the South Bend Central Development Area. 6. NEW BUSINESS A. Housing (1) Loan and Grant in connection with the South Bend Home Improvement Program for property located at 2522 Fredrickson Street. (Gloria Whittaker) Mr. Inks noted that the loan is in the amount of $9,300. The grant is $9,148.50. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved the Loan and Grant in connection with the South Bend Home Improvement Program for property located at 2522 Fredrickson Street. (Gloria Whittaker) (2) Rehabilitation Agreement Release related to the Rental Rehab Program. (422 College) COMMISSION APPROVED RESOLUTION N0.2744 APPROVING AND ACCEPTING A COUNTER OFFER IN THE AMOUNT OF $150,000 FOR THE ACQUISITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 2522 FREDRICKSON STREET. (GLORIA WHITTAKER) South Bend Redevelopment Commission Rescheduled Regular Meeting — November 2, 2010 Ms. Jennings noted that in 1991 the city administered a Rental Rehab program whereby landlords could receive a loan to improve their property. The loan could be forgiven at the rate of 10% per year if the property was maintained, was rented to low and moderate income people, and taxes were paid. The owner of 422 College St. met his obligation under the agreement and is asking the Commission to release the lien on the property. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved the Rehabilitation Agreement Release related to the Rental Rehab Program. (422 College) B. South Bend Central Development Area (1) Resolution No. 2797 approving the Fair Market Value of property in the South Bend Central Development Area. (410 South Main Street, Main & Western parcel) Mr. Schalliol noted that the Commission has owned the Main and Western parcel for several years. Recently the Commission has had environmental testing done on the site. Staff has received a letter from IDEM stating that no further action is required. Staff would now like to dispose of the parcel. Resolution No. 2797 sets the fair market value for the property located at 410 South Main Street at $80,825, the average of two independent appraisals. The parcel is + 34,055 sq ft (139 ft x 245 ft) in size. The property is zoned "CBD" or Central Business District. n COMMISSION APPROVED THE REHABILITATION AGREEMENT RELEASE RELATED TO THE RENTAL REHAB PROGRAM. (422 COLLEGE) South Bend Redevelopment Commission Rescheduled Regular Meeting — November 2, 2010 Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2797 approving the Fair Market Value of property in the South Bend Central Development Area. (410 South Main Street, Main & Western parcel) (2) Bid Specifications and Design Considerations for 410 South Main Street Mr. Schalliol noted that the Bid Specifications stipulate that all offers must meet the minimum price of $80,825.00. The purchase must include the entire +.78 acre parcel. The property is being offered in an "As Is" condition. A complete environmental history report is available for the parcel, including a "No Further Action Determination" letter from IDEM Commercial - retail, commercial - office or mixed use projects that are permitted within the "CBD" Central Business District zoning designation. Strong emphasis will be placed during the review process on compatibility with the goals and objectives of Downtown South Bend and the Coveleski Park planning area. All proposals for the reuse of the disposition parcel must include a basic reuse plan for the site and a project timeline detailing aspects of the site redevelopment and site improvements. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved the Bid Specifications and Design Considerations for 410 South. Main Street. (3) Authorization to publish Notice of Intended Sale of Property with publication dates of November 5 and November 12, 7 COMMISSION APPROVED RESOLUTION NO. 2797 APPROVING THE FAIR MARKET VALUE OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (410 SOUTH MAIN STREET, MAIN & WESTERN PARCEL) COMMISSION APPROVED BID SPECIFICATIONS AND DESIGN CONSIDERATIONS FOR 410 SOUTH MAIN STREET South Bend Redevelopment Commission Rescheduled Regular Meeting November 2, 2010 2010 and receipt of bids at 10:00 a.m., December 3, 2010 Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission authorized publication of the Notice of Intended Sale of Property with publication dates of November 5 and November 12, 2010 and receipt of bids at 10:00 a.m., December 3, 2010. (4) Staff report on Coveleski Stadium and Park Improvements. Mayor Luecke introduced the proposed improvement plan for Coveleski Stadium. He said the stadium has been a great asset to the City of South Bend, strengthening the southern sector of downtown, being a great place for families to enjoy, and a great venue for community gatherings. As the stadium approaches twenty -five years of age, the city feels it is important to make some improvements because, in some aspects the stadium no longer meets league standards and, since the stadium is city- owned, we want a facility we can be proud of. When the stadium was built, it was a model for minor league stadiums in the Midwest. Standards have changed. Now we want to add some amenities that we think will enhance viewing for fans. In addition, we hope to make it a better venue for a lot more community events. Additionally, we hope the improved stadium will be a catalyst for private investment surrounding the stadium - -- office, retail and residential. We think these improvements are critical to, not only the stadium, but the entire community. Mr. Inks noted that a thirty -seven page PowerPoint presentation was distributed in COMMISSION AUTHORIZED PUBLICATION OF THE NOTICE OF INTENDED SALE OF PROPERTY WITH PUBLICATION DATES OF NOVEMBER 5 AND NOVEMBER 12, 2010 AND RECEIPT OF BIDS AT 10:00 A.M., DECEMBER 3, 2010 STAFF REPORT ON COVELESKI STADIUM AND PARK IMPROVEMENTS South Bend Redevelopment Commission Rescheduled Regular Meeting November 2, 2010 the Commission packets. He gave a summary of that presentation. He noted that the city's plan for the Coveleski Park area is for mixed use development anchored by an enhanced stadium creating connectivity to the downtown, and creating development opportunities surrounding the stadium. Wightman Petrie brought some renderings of a new Centerfield entrance, a splash pad for children, a team store and memorial, Left Field picnic seating, the 360 degree concourse, and a kids Fun Zone. Other improvements to be made are: upgrades to the seating bowl, concourse suites and Upper Deck; new artificial turf and drainage system, upgraded dugouts for player safety, a new training facility to be open year round, new restrooms and concession stands and a new scoreboard and sound system. Mr. Inks explained the logic for making these improvements at this time. The improvements are a key part of the mixed use development for the area. The age of the facility requires maintenance; and staff feels it is better to do the maintenance as part of needed upgrades. Some improvements are needed to meet Minor League requirements: • Lighting upgrades • New turf and drainage (artificial is to allow greater use of the facility and save on maintenance costs) • Training facility (hitting and pitching) • The stadium does not have the state required number of restrooms These improvements anticipate expanded use of the stadium for such things as pre -game, on -the -field family activities, business softball games, police /fire softball games, overnight youth camping, etc. 6 South Bend Redevelopment Commission Rescheduled Regular Meeting — November 2, 2010 Mr. Inks noted that the total project cost is expected to be $9.6M plus bond issuance costs of $120,000 and a debt service reserve of $480,000. The total of those is $10.2M. Financing for the project is a $4.98M Recovery Zone Bond which offers a 45% interest rebate. The rebate will result in interest savings of approximately $400,000 over the life of the bond. In addition to the bond, $2M of TIF funds, $2.7M of COIT funds, and $520,000 of EDIT funds will also be used. Mr. Inks noted that the bond schedule will be to take an ordinance to the Common Council November 8 for first reading with final action by the Common Council on November 22; the Redevelopment Commission will consider a final bond resolution on November 15 and hold a public hearing on appropriating the bond funds that same day. Mr. Downes asked the timeline for completing the renovations. Mr. Schalliol responded that bids for some of the work are due over the next couple of weeks. Some of the work will be complete by opening day; the remainder by mid -July. Ms. King asked if it is reasonable to expect the cash flow from the Professional Sports Development Fund will be sufficient to service the bonds. Mr. Zientara, Controller, responded that the fund has annual revenue of close to $600,000. The anticipated debt service is approximately $430,000. Mr. Inks noted that the COIT funds are necessary as a backup to get a better interest rate on the bonds. Ms. King asked if the Professional Sports 10 South Bend Redevelopment Commission Rescheduled Regular Meeting November 2, 2010 Development Fund has other obligations besides debt service to the bond. Mr. Zientara said it does not. It has provided some one -time capital funds to the College Football Hall of Fame and Century Center, Ms. King asked if the TIF revenue stream is sufficient to pay its portion of the Coveleski expenses. Mr. Inks responded that there are sufficient funds in the SBCDA TIF. We have not found it necessary to reduce the SBCDA budget in any way to provide for the Coveleski improvements. There have been significant reserves set aside over the last several years for Coveleski improvements. They were not spent because the work scope was not fully defined. Now we will be putting them to work in the project. Mr. Downes asked if the TIF funds are from 2010 and 2011 revenue. Mr. Inks responded that they are all cash on hand from 2010 revenues. They may be spent in 2011, but not from 2011 revenue. Ms. Jones asked about the availability of space at the entrance for retail. Mr. Schalliol responded that there are five to six pad sites that could be developed on the campus of the Cove itself, one or two at the entrance. We will begin to market those as soon as we have a plan. Ms. King asked if these improvements contemplate any improvements north of the stadium toward downtown South Bend. Mr. Schalliol responded that the improvements we are talking about today are only on the Coveleski campus. Ms. Jones asked if the entire facility will be ADA compliant. Mr. Schalliol responded 11 South Bend Redevelopment Commission Rescheduled Regular Meeting November 2, 2010 that it will be much more ADA compliant. Mr. Alford asked if the park will need additional parking. Mr. Schalliol responded that the plan is to use parking on the former Gates Toyota property to the north, and there will be a lot of on- street parking between the Cove and downtown. Ms. King stressed that these improvements are not just to help the baseball stadium, they are an integral part of a larger plan to redevelop and renovate our downtown. As we talk about the improvements, we should communicate it in that context. Mr. Downes said he has heard some criticism about the choice of artificial turf. It's important that the public understand that this goes way beyond baseball. The artificial turf enables the facility to be used much more by the community. It makes the decision a "no- brainer" Mr. Gibney noted that within a three -block area of the Western Avenue entrance there is already underway $45M of additional investment: all new windows in the Housing Authority's senior housing mid -rise, upcoming improvements to the Housing Authority duplexes, construction of the $38M KROC Center, and a nicely landscaped parking across from the KROC Center. Mr. Alford stated his opinion that management should aggressively pursue a high quality restaurant for one of the retail spaces, such as Bennigans, to help bring people to the area. Mr. Downes noted that he is one of about 12 South Bend Redevelopment Commission Rescheduled Regular Meeting November 2, 2010 fifty investors in the Silverhawks. Legal counsel has advised that the level of his ownership does not constitute a conflict of interest. (5) Interlocal Agreement with South Bend Parks Board and the South Bend Board of Public Works. (Coveleski Stadium Rehabilitation) Mr. Inks noted that Coveleski Stadium is owned by the Park Department, so the Park Department will be providing access for all construction activities and approval of the improvements; the Board of Public Works will bid and oversee the project; and the Redevelopment Commission's role will be to account for the resources being used for the project. Ownership of the facility will remain with the Parks Department. Upon a motion by Ms King, seconded by Mr. Alford and unanimously carried, the Commission approved the Interlocal Agreement with South Bend Parks Board and the South Bend Board of Public Works. (Coveleski Stadium Rehabilitation) (6) Resolution No. 2796 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Coveleski Stadium Improvements — Phase 2) Mr. Schalliol noted that the purpose of this agreement is to set in place the necessary funding that the Redevelopment Commission will be committing to the Coveleski project and to allow the Board of Public Works to manage the funds related to the project. The entire scope of the Coveleski Stadium Improvements — Phase 2 project is budgeted 13 COMMISSION APPROVED INTERLOCAL AGREEMENT WITH SOUTH BEND PARKS BOARD AND THE SOUTH BEND BOARD OF PUBLIC WORKS. (COVELESKI STADIUM REHABILITATION) South Bend Redevelopment Commission Rescheduled Regular Meeting — November 2, 2010 at $9.5 million dollars. Upon a motion by Ms King, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2796 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Coveleski Stadium Improvements — Phase 2) (7) Resolution No. 2798 a Preliminary Bond Resolution of the South Bend Redevelopment Commission authorizing the issuance of South Bend, Indiana, Redevelopment District Revenue District Bonds (Coveleski Improvements) Mr. Inks noted that the $4,980,000 bond has a term of up to twenty years. The bonds would be taxable. With the 40% interest rebate, the actual interest rate falls below that of tax exempt bonds. Repayment is from the Professional Sports Development Fund with COIT backup. Upon a motion by Ms King, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2798, a Preliminary Bond Resolution of the South Bend Redevelopment Commission authorizing the issuance of South Bend, Indiana, Redevelopment District Revenue District Bonds (Coveleski Improvements) (8) Project Assignment proposal for financial consulting services related to Coveleski Stadium bond issue. Mr. Inks noted that the Project Assigment is a standard agreement with Crowe Horwath which has done excellent work for us in the past. Staff recommends hiring them as a 14 COMMISSION APPROVED RESOLUTION NO. 2796 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT (COVELESKI STADIUM IMPROVEMENTS - PHASE 2) COMMISSION APPROVED RESOLUTION No. 2798, A PRELIMINARY BOND RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION AUTHORIZING THE ISSUANCE OF SOUTH BEND, INDIANA, REDEVELOPMENT DISTRICT REVENUE DISTRICT BONDS (COVELESKI IMPROVEMENTS) South Bend Redevelopment Commission Rescheduled Regular Meeting November 2, 2010 financial consultant for this bond issue. Upon a motion by Ms King, seconded by Mr. Alford and unanimously carried, the Commission approved the Project Assignment proposal for financial consulting services related to the Coveleski Stadium bond issue. C. Airport Economic Development Area (1) Staff report on Ivy Tech Acquisitions Mr. Relos noted that items 6.C.(3), (5), (6) and (8) are all related to this staff report. On August 26, 2009, the Redevelopment Commission approved the addition of certain properties to the acquisition list of the Airport Economic Development Area (AEDA). Four of these properties were added in an attempt to help Ivy Tech expand its classroom, parking, and storage, in light of the large increases in enrollment. Additionally, on May 21, 2010, four more properties targeted for Ivy Tech's expansion needs were added to the AEDA's acquisition list. These four properties were added in the event agreement could not be reached with the original four property owners. Since these eight properties were added to the acquisition list, the Habitat ReStore property was acquired and donated to Ivy Tech. During the past 15 months, ongoing discussions have taken place with the other property owners. After varying degrees of these discussions starting and stopping, we now have agreement with three property owners along East Sample Street — Discount Rental, Sinco Pools, and Enyart Electric Motor Repair. These three important properties are near Ivy Tech's main campus. 15 COMMISSION APPROVED THE PROJECT ASSIGNMENT PROPOSAL FOR FINANCIAL CONSULTING SERVICES RELATED TO THE COVELESKI STADIUM BOND ISSUE STAFF REPORT ON IVY TECH ACQUISITIONS South Bend Redevelopment Commission Rescheduled Regular Meeting — November 2, 2010 The money for acquisition and relocation of these properties is in the AEDA budget. Mr. Relos noted that Ivy Tech has made an investment of over $977,000 in this immediate area on the renovation of the ITOSS building (250 E. Sample), almost $222,000 on the ITOSS parking lot, and they expect to spend up to $400,000 on the former Habitat ReStore property. We can expect a similar level of investment in these three properties, as Ivy Tech renovates them to fit their needs. Acquisition of the three properties before the Commission today will go a long way to help alleviate the classroom and parking shortages Ivy Tech is experiencing. (2) Proposal for Supplemental Phase II Environmental Assessment of 1521/1527 S. Kendall Street. Mr. Relos noted that 1521/1527 S. Kendall is a little car shop that we hope to acquire. Phifer Environmental completed a Phase I site assessment of 1521/1527 S. Kendall in June which revealed certain Recognized Environmental Conditions. A Phase II was recommended, authorized by the Commission in July and completed in October. The Phase II revealed Tetrachroethylene in the ground water at the two most eastern of the four sample sites on the property, which over the years has been a car repair and a body shop. Tetrachro- ethylene is a chemical traditionally used in the dry cleaning business. Because, historically, there was a dry cleaner a half block to the south and a Laundromat directly to the south of this property, it has been suggested that further analysis be done. 16 South Bend Redevelopment Commission Rescheduled Regular Meeting — November 2, 2010 The analysis will consist of five geoprobes to be installed around the perimeter of the property to collect water and soil samples. The water samples will be tested to determine from which direction the Tetrachroethylene is coming from, and that this site is not the source of the contamination. Phifer Environmental has proposed a cost for these environmental services not to exceed $5,175. Staff recommends approval. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission accepted the proposal from Phifer Environmental Services for Supplemental Phase II Environmental Assessment of 1521/1527 S. Kendall Street for the scope of services and fee proposed. (3) Resolution No. 2786 related to acquisition of property in the Airport Economic Development Area. (202 & 130 E. Sample Street, 125 & 127 E. Ohio Street, Sinco Pools) Mr. Relos noted that Sinco Pools was added to the Airport Economic Development Area Acquisition List by Resolution No. 2668 on May 21, 2010. It is a one story masonry and cement block, 16,100 square foot building, comprised of 9,048 square feet of office / showroom and 7,062 square feet of shop / warehouse space. Land area is 27,857 square feet, or .64 acres. It contains four abutting parcels, two along East Sample Street and two along East Ohio Street. The building will be used by Ivy Tech for expansion of much needed classroom and storage space, and provides some on site parking. Resolution No. 2786 sets the acquisition 17 COMMISSION ACCEPTED THE PROPOSAL FROM PHIFER ENVIRONMENTAL SERVICES FOR SUPPLEMENTAL PHASE II ENVIRONMENTAL ASSESSMENT OF 1521/1527 S. KENDALL STREET FOR THE SCOPE OF SERVICES AND FEE PROPOSED South Bend Redevelopment Commission Rescheduled Regular Meeting — November 2, 2010 value of the property at $237,500, the average of two independent appraisals. In addition to the acquisition price of this property, there are relocation and moving expenses of $150,105. Relocation expenses consist of needed improvements at Sinco's new location, which will be 1720 S. Michigan St, the Harvey Pro Shop / Hardware. Staff feels the total acquisition, relocation, and moving costs of $387,605 for this property is reasonable, and requests approval of Resolution No. 2786 and relocation expenses of $150,105, to allow for the acquisition of this property. Ms. King asked if the Commission will then have expenses related to renovating the building for Ivy Tech's use. Mr. Relos responded that it will not. Mr. Downes asked for an update on Ivy Tech's enrollment, noting that when the Commission began acquiring property for Ivy Tech approximately eighteen months ago, enrollment had increased significantly and they were bursting at the seams. Ms. Duncanson responded that enrollment is up another 4 % -5% in 2010. As part of its statewide plan to improve achievement, they are also adding a lot of staff. They are also expanding their Student Life Program: student government and clubs, etc. Mr: Placek said another use they want to make of the expanded facilities is for a VA center. They have received about $17,000 in grants to establish a VA center, a place for veterans to gather, talk about veteran issues, and where veteran resources will be more readily accessible. The Veterans 18 South Bend Redevelopment Commission Rescheduled Regular Meeting November 2, 2010 Administration has hired three people to work there. The grant offers impetus to find space to open the center. Ms. Calvin said that the community is demanding more programs. This fall they will open their first nanotechnology program. For that they need more labs. That's an example of one program that needs the new space. Mr. Downes responded that he thinks it is important to realize how the Ivy Tech expansion is critically important to economic development for the community. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2786 and relocation expenses of $150,105 related to acquisition of property in the Airport Economic Development Area. (202 & 130 E. Sample Street, 125 & 127 E. Ohio Street, Sinco Pools) (4) Resolution No. 2792 approving and accepting a counter offer for the acquisition of property in the Airport Economic Development Area. (905 -909 W. Indiana Ave.) Mr. Relos noted that on October 15 the Commission approved Resolution No. 2783 setting the offering price for 905 -909 W. Indiana Avenue at $35,250, the average of two independent appraisals. The owner has submitted a counter offer in the amount of $40,000. The property is a two - story, four bedroom, 1506 sft single family home with an adjacent lot. Staff recommends accepting the counter offer. 19 COMMISSION APPROVED RESOLUTION No. 2786 AND RELOCATION EXPENSES OF $150,105 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (202 & 130 E. SAMPLE STREET, 125 & 127 E. OHIO STREET, SINCO POOLS) South Bend Redevelopment Commission Rescheduled Regular Meeting November 2, 2010 Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2792 approving and accepting a counter offer of $40,000 for the acquisition of property in the Airport Economic Development Area. (905- 909 W. Indiana Ave.) (5) Resolution No. 2793 related to acquisition of property in the Airport Economic Development Area. (Enyart Motors, 122- 124 E. Sample and 117 -123 E. Ohio) Mr. Relos noted that Enyart Electric Motor Repair is a two story masonry and cement block, 9,200 square foot building, comprised of 5,200 square feet of office / shop / warehouse on the first floor, and 4,000 square feet of second floor storage space. Land area is 21,150 square feet, or .486 acres. It contains five abutting parcels, one along East Sample Street and four along East Ohio Street. Resolution No. 2793 sets the acquisition value of the property at $107,500, the average of two independent appraisals. Resolution No. 2800 is the property owner's counter offer of $190,160. When valuing this building, the appraisals did not give value to the second story. The price per square foot was applied only to the first floor's square footage. The owners feel the second floor does add value, and argue that this value should be calculated into the building's overall pricing, especially in light of the value per square foot of their building versus Habitat's a few blocks away ($20 / square foot Enyart versus $25.75 / square foot Habitat). 20 COMMISSION APPROVED RESOLUTION NO. 2792 APPROVING AND ACCEPTING A COUNTER OFFER FOR THE ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (905 -909 W. INDIANA AVE.) South Bend Redevelopment Commission Rescheduled Regular Meeting — November 2, 2010 Enyart's counter offer of $190,160 is based on applying the $20 per square foot value to the square footage of both floors, not just the first floor, in addition to the 308 square foot cement block storage garage behind the building. Recent improvements to the building were done in 2008, and include a new roof, tuck pointing the front brick fagade, and residing the building's west side. In addition to the purchase price of this property, relocation and moving expenses of $132,318 are needed. Enyart Motors was already thinking of moving and is interested in purchasing 1313 Prairie, which the Commission owns and is going through the disposition process. Relocation and moving expenses consist of improvements to 1313 Prairie Avenue. Staff recommends approval of Resolution No. 2793 and Resolution No. 2800 approving the total acquisition price of $322,478 and relocation, and moving costs of $132,318for Enyart Motors, approving. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2793 related to acquisition of property in the Airport Economic Development Area. (Enyart Motors, 122 -124 E. Sample and 117- 123 E. Ohio) (6) Resolution No. 2800 approving and accepting a counter offer for the acquisition of property in the Airport Economic Development Area. (Enyart Motors) Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2800 a RESOLUTION NO. 2793 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (ENYART MOTORS, 122 -124 E. SAMPLE AND 117 -123 E. OHIO) COMMISSION APPROVED RESOLUTION NO. 2800 APPROVING AND ACCEPTING A COUNTER OFFER FOR THE ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. South Bend Redevelopment Commission Rescheduled Regular Meeting November 2, 2010 approving and accepting a counter offer for the acquisition of property in the Airport Economic Development Area. (Enyart Motors) (7) Resolution No. 2794 related to acquisition of property in the Airport Economic Development Area (1514 S. Scott Street) Mr. Relos noted that 1514 S. Scott Street was added to the Airport Economic Development Area Acquisition List by Resolution No. 2668 on May 21, 2010. The property is a two story residence. The first floor is owner occupied, with the second floor being a rental. Total square footage is 1,364. Both floors are one bedroom and one bath. The main floor consists of 704 square feet; the second floor consists of 660 square feet. Resolution No. 2794 sets the acquisition value of the property at $25,500, the average value as determined by two independent appraisals. Staff recommends approval. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2794 related to acquisition of property in the Airport Economic Development Area (1514 S. Scott Street) (8) Resolution No. 2795 related to acquisition of property in the Airport Economic Development Area. (230 E. Sample Street, Discount Rental) Mr. Relos noted that 230 E. Sample was added to the Airport Economic Development Area Acquisition List by Resolution No. 2596 on August 26, 2009. The property is a one story pre- engineered steel 22 (ENYART MOTORS) COMMISSION APPROVED RESOLUTION NO. 2794 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (1514 S. SCOTT STREET) South Bend Redevelopment Commission Rescheduled Regular Meeting — November 2, 2010 construction, 34,200 square foot building, comprised of 21,600 square feet on the first floor (3,000 office / showroom, 18,600 shop / warehouse) and 12,600 on the second floor (2,000 office, 10,600 shop / warehouse). Land area is 41,833 square feet, or .96 acres. It contains two abutting parcels that stretch from Sample on the north, Ohio on the south, and Carroll to the east. This property hugs the ITOSS property on the west and south. Resolution No. 2795 sets the acquisition value of the property at $302,000, the average value of independent appraisals. In addition to the acquisition price, relocation and moving expenses of $548,000 are needed. Relocation expenses consist of needed improvements Discount Rental's other location at Legend Park where their operation will be consolidated. Estimated improvements and moving expenses for Discount Rental to relocate to Legend Park are $784,350. The amount over $548,000 will be absorbed by Discount Rental by way of moving and reinstalling the smaller items themselves. Staff feels the total acquisition, relocation, and moving costs of $850,000 for this property is reasonable. It is significantly less than was asked eighteen months ago. Staff requests approval of Resolution No. 2795 and relocation expenses of $548,000, to allow for the acquisition of this property. Mr. Downes congratulated Mr. Relos on securing these properties. He stressed that these businesses are not leaving the community. Mr. Relos responded that, at the end of the day, each feels they have been fairly compensated. 23 South Bend Redevelopment Commission Rescheduled Regular Meeting — November 2, 2010 Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2795 related to acquisition of property in the Airport Economic Development Area and $548,000 of relocation expenses. (230 E. Sample Street, Discount Rental) (9) Oliver Plow Memorial Sculpture Agreement Mr. Schalliol noted that on August 20, 2010 the Commission approved a proposal from Tuck Langland to design and develop a sculpture for the Oliver Plow Memorial in the Oliver Industrial Park. The sculpture will feature James Oliver and an Oliver Plow. This is the formal agreement that has been written by our Legal Department. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved the Oliver Plow Memorial Sculpture Agreement. (10) Staff report on acquisition of property in the Airport Economic Development Area. (1503 & 1505 Prairie Ave.) Mr. Schalliol noted that on September 17, 2010, the Redevelopment Commission approved Resolution No. 2772 and Resolution No. 2773 which set the acquisition offering price for 1503 and 1505 Prairie Avenue respectively. The two industrial properties are located on the west side of Prairie adjacent to the Ignition Park campus and were identified as target acquisition properties and added to the acquisition list in May of this year. 24 COMMISSION APPROVED RESOLUTION NO. 2795 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND $548,000 OF RELOCATION EXPENSES. (230 E. SAMPLE STREET, DISCOUNT RENTAL) COMMISSION APPROVED THE OLIVER PLOW MEMORIAL SCULPTURE AGREEMENT South Bend Redevelopment Commission Rescheduled Regular Meeting November 2, 2010 The owner accepted the offers as presented, but relocation costs were needed: $30,000 for 1503 Prairie and $5,000 for 1505 Prairie. Upon closing on the properties, demolition and site preparation plans will be prepared and the site will be cleaned and cleared. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE RELOCATION Ms. King and unanimously carried, the EXPENSES FOR 1503 AND 1505 PRAIRIE FOR A Commission approved the relocation TOTAL OF $35,000 expenses for 1503 and 1505 Prairie for a total of $35,000. (11) Confidential Settlement Agreement and Release with Affiliated FM Insurance Company concerning the former Oliver Plow Works property. Ms. Kolata noted that this is a very small settlement. There is only one more settlement to be concluded for the Oliver property. Upon motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission Confidential Settlement Agreement and Release with Affiliated FM Insurance Company concerning the former Oliver Plow Works property D. West Washington- Chapin Development Area There was no business in the West Washington - Chapin Development Area. E. South Side Development Area There was no business in the South Side Development Area. F. Northeast Neighborhood Development Area 25 COMMISSION APPROVED THE CONFIDENTIAL SETTLEMENT AGREEMENT AND RELEASE WITH AFFILIATED FM INSURANCE COMPANY CONCERNING THE FORMER OLIVER PLOW WORKS PROPERT South Bend Redevelopment Commission Rescheduled Regular Meeting — November 2, 2010 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. G. Ratification of Services Contracts Mr. Inks noted that there are three services contracts all within the boundaries of the resolution approved by the Commission Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission ratified the Services Contracts approved by staff since October 15, 2010. H. Ratification of Project Assignments Mr. Inks noted we hire Crowe Chizek do the Tax Increment Financing Neutralization Worksheet each year. The fee for that is $15,000. That fee is within the range the Commission by resolution authorized staff to approve. 26 COMMISSION RATIFIED THE SERVICES CONTRACTS APPROVED BY STAFF SINCE OCTOBER 15, 2010 Commission Role in Contract Staff Transaction Contractor Service Provided Amount Member 1526 S. Catalpa Acquisition Michaels Appraisal Appraisal $350 Relos Services 1526 S. Catalpa Acquisition Witt Appraisal Appraisal $350 Relos Services 1526 S. Catalpa Acquisition Meridian Title Corp. Title Work $100 Relos Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission ratified the Services Contracts approved by staff since October 15, 2010. H. Ratification of Project Assignments Mr. Inks noted we hire Crowe Chizek do the Tax Increment Financing Neutralization Worksheet each year. The fee for that is $15,000. That fee is within the range the Commission by resolution authorized staff to approve. 26 COMMISSION RATIFIED THE SERVICES CONTRACTS APPROVED BY STAFF SINCE OCTOBER 15, 2010 South Bend Redevelopment Commission Rescheduled Regular Meeting — November 2, 2010 Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission ratified the Project Assignment approved by staff since October 15, 2010. J. Other (1) Addendum to Agreement for Programs and Services with Near Northwest Neighborhood, Inc. (FaVade Matching Grant Program, Portage Avenue) Mr. Inks noted that the Near Northwest Neighborhood, Inc. would like to change the scope of its Agreement for Programs for 2010 to use the balance of their funds. The NNN has the opportunity to acquire 632 Portage Avenue. It was a property recently damaged by fire. There was a small retail business on the ground floor. The building was not an asset to the neighborhood. Historic Preservation has signed off on the appropriateness of demolition of the property. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved the Addendum to Agreement for Programs and Services with Near Northwest Neighborhood, Inc. (FaVade Matching Grant Program, Portage Avenue) 7. PROGRESS REPORTS There was no report. 27 COMMISSION RATIFIED THE PROJECT ASSIGNMENT APPROVED BY STAFF SINCE OCTOBER 15, 2010 COMMISSION APPROVED THE ADDENDUM TO AGREEMENT FOR PROGRAMS AND SERVICES WITH NEAR NORTHWEST NEIGHBORHOOD, INC. (FAQADE MATCHING GRANT PROGRAM, PORTAGE AVENUE) PROGRESS REPORTS Contract Staff Project Service Provided Contractor Amount Member Tax Increment Collect TIF data, Crowe NTE Inks Financing Prepare TIF $15,000 Neutralization Worksheets and file Worksheets with Auditor's Office Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission ratified the Project Assignment approved by staff since October 15, 2010. J. Other (1) Addendum to Agreement for Programs and Services with Near Northwest Neighborhood, Inc. (FaVade Matching Grant Program, Portage Avenue) Mr. Inks noted that the Near Northwest Neighborhood, Inc. would like to change the scope of its Agreement for Programs for 2010 to use the balance of their funds. The NNN has the opportunity to acquire 632 Portage Avenue. It was a property recently damaged by fire. There was a small retail business on the ground floor. The building was not an asset to the neighborhood. Historic Preservation has signed off on the appropriateness of demolition of the property. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved the Addendum to Agreement for Programs and Services with Near Northwest Neighborhood, Inc. (FaVade Matching Grant Program, Portage Avenue) 7. PROGRESS REPORTS There was no report. 27 COMMISSION RATIFIED THE PROJECT ASSIGNMENT APPROVED BY STAFF SINCE OCTOBER 15, 2010 COMMISSION APPROVED THE ADDENDUM TO AGREEMENT FOR PROGRAMS AND SERVICES WITH NEAR NORTHWEST NEIGHBORHOOD, INC. (FAQADE MATCHING GRANT PROGRAM, PORTAGE AVENUE) PROGRESS REPORTS South Bend Redevelopment Commission Rescheduled Regular Meeting — November 2, 2010 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Friday, November 19, 2010 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, the meeting was adjourned at 11:12 a.m. Donald E. Inks, Director 28