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Home My WebLink About11-02-10 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULED REGULAR MEETING November 2, 2010 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Members Absent: Dr. David Varner, Vice President Ms. Stephanie Spivey Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. Robert Mathia, Economic Development Specialist Mr. David Relos, Economic Development Specialist Ms. 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. CM Upon a motion by Mr. Downes, seconded by Ms. OMMISSION APPROVED THE INUTES OF THE RMF,O15, EGULAR EETING OF RIDAY CTOBER King and unanimously carried, the Commission 2010 approved the Minutes of the Regular Meeting of Friday, October 15, 2010. 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted November 2, 2010 for approval. 305 FUND SBCDA BOND Paul Fujawa Engineers, Inc. 11,600.00 SB St. Jos. & Wayne P.G. Façade Architecture Design Group 4,200.00 Century Center Island Park Pavilion Wightman Petrie 314,346.82 Coveleski Design Work 324 AIRPORT AEDA Plews Shadley Racher & Braun LLP 4,262.93 Cost Recovery Studebaker/Olive Plow Tuck Langland 45,000.00 Payment for James Oliver & Oliver Plow Sculptures IDEM 733.00 Reimbursement all Administrative Costs South Bend Parks & Recreation Dept 4,780.00 Lawn Maintenance DLZ 8,416.52 Studebaker; Pine/Olive Rds Indiana Michigan Power 1313 Prairie Ave 64.22 Nipsco 1313 Prairie 6.49 Michaels Appraisal Service 975.00 1514 S. Scott; 1526 Catalpa Phifer Environmental Services, LLC 4,545.00 Phase II Env. Site Assessment - 1521 & 1527 Kendall Innovation Park @ Notre Dame Office Space 630.00 Hathaway 2, Inc. Ignition Park - September 2010 billing 6,277.00 The Lakota Group 10,578.80 Ignition Park - PUD 8/16 thru 9/30/2010 WITT Appraisal Services, Inc 1526 S. Catalpa 350.00 Meridian Title Corporation 1526 S. Catalpa; 521 W. Indiana 73,866.50 South Bend Water Works 1313 Prairie 105.41 Scott & Kimberle Izdepski Olive Road/US 20 Reconstruction 12,312.50 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 LaSalle Hotel 96.00 All-Phase Electric 2,872.80 CB Richard Ellis LaSalle Hotel 1,673.17 South Bend Parks & Recreation Dept 695.00 Lawn Maintenance Ampco System Parking St Joseph St Surface / 225 Main St 2,061.66 Architecture Design Group Adaptive Reuse - College Football Hall 3,622.00 of Fame Indiana Michigan Power 325 S. Lafayette & 329 S. Lafayette 223.88 426 FUND TIF DISTRICT - CENTRAL MEDICAL Michigan Streetscape DLZ 5,718.75 Memorial Hospital Streetscape Improvements Walsh & Kelly 131,454.63 Bartlett Façade Renovation Carl Walker 4,188.18 422 FUND TIF DISTRICT WEST WASHINGTON South Bend Parks & Recreation Dept 150.00 Lawn Maintenance 430 FUND SOUTHSIDE DEVELOPMENT TIF AREA #1 South Bend Parks & Recreation Dept 150.00 Lawn Maintenance Meridian Title Corporation Acquisition & relocation of 4215 S. Main 135,542.67 $ 791,718.43 CC Upon a motion by Mr. Downes, seconded by Ms. King OMMISSION APPROVED THE LAIMS N2,2010, SUBMITTED OVEMBER AND ORDERED and unanimously carried, the Commission approved the THE CHECKS TO BE RELEASED Claims submitted November 2, 2010, and ordered checks to be released. 4. COMMUNICATIONS TC There were no Communications. HERE WERE NO OMMUNICATIONS 3 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 2522 Fredrickson Street. (Gloria Whittaker) 4 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 5. OLD BUSINESS (CONT.) A. South Bend Central Development Area (1) continued… 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. CRN.2744 Upon a motion by Ms. King, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AND ACCEPTING A COUNTER OFFER Mr. Downes and unanimously carried, the $150,000 IN THE AMOUNT OF FOR THE Commission approved Resolution No. 2744 SB ACQUISITION OF PROPERTY IN THE OUTH END approving and accepting a counter offer in CDA ENTRAL EVELOPMENT REA 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. CLG Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED THE OAN AND RANT SBH IN CONNECTION WITH THE OUTH END OME Mr. Alford and unanimously carried, the IP MPROVEMENT ROGRAM FOR PROPERTY Commission approved the Loan and Grant in 2522FS. LOCATED AT REDRICKSON TREET connection with the South Bend Home (GW) LORIA HITTAKER Improvement Program for property located at 5 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) A. Housing (2) Rehabilitation Agreement Release related to the Rental Rehab Program. (422 College) 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. CR Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED THE EHABILITATION ARR GREEMENT ELEASE RELATED TO THE ENTAL Mr. Alford and unanimously carried, the RP.(422C) EHAB ROGRAM OLLEGE 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. 6 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued… 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. CRN.2797 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O FMV APPROVING THE AIR ARKET ALUE OF Mr. Alford and unanimously carried, the SBC PROPERTY IN THE OUTH END ENTRAL Commission approved Resolution No. 2797 DA.(410SM EVELOPMENT REA OUTH AIN approving the Fair Market Value of property S,M&W) TREET AIN ESTERN PARCEL 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 7 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued… disposition parcel must include a basic reuse plan for the site and a project timeline detailing aspects of the site redevelopment and site improvements. CBS Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ID PECIFICATIONS DC410S AND ESIGN ONSIDERATIONS FOR OUTH Mr. Alford and unanimously carried, the MS AIN TREET 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, 2010 and receipt of bids at 10:00 a.m., December 3, 2010 CA Upon a motion by Mr. Downes, seconded by OMMISSION UTHORIZED PUBLICATION OF THE NISP OTICE OF NTENDED ALE OF ROPERTY WITH Mr. Alford and unanimously carried, the N5 PUBLICATION DATES OF OVEMBER AND Commission authorized publication of the N12,2010 OVEMBER AND RECEIPT OF BIDS AT Notice of Intended Sale of Property with 10:00..,D 3,2010 AM ECEMBER 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. SCS Mayor Luecke introduced the proposed TAFF REPORT ON OVELESKI TADIUM AND PI ARK MPROVEMENTS 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 8 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued… 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 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, 9 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued… 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. 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 10 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued… 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 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 11 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued… 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. 12 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued… Ms. Jones asked if the entire facility will be ADA compliant. Mr. Schalliol responded 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. 13 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued… 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 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. CI Upon a motion by Ms King, seconded by Mr. OMMISSION APPROVED NTERLOCAL ASBPB GREEMENT WITH OUTH END ARKS OARD Alford and unanimously carried, the SBBP AND THE OUTH END OARD OF UBLIC Commission approved the Interlocal W.(CS ORKS OVELESKI TADIUM Agreement with South Bend Parks Board and R) EHABILITATION the South Bend Board of Public Works. (Coveleski Stadium Rehabilitation) 14 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (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 at $9.5 million dollars. CRN.2796 Upon a motion by Ms King, seconded by Mr. OMMISSION APPROVED ESOLUTION O APPROVING AND AUTHORIZING THE EXECUTION Alford and unanimously carried, the AMA OF AN DDENDUM TO THE ASTER GENCY Commission approved Resolution No. 2796 A(CS GREEMENT OVELESKI TADIUM approving and authorizing the execution of I–P2) MPROVEMENTS HASE 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. 15 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (7) continued… CRN.2798, Upon a motion by Ms King, seconded by Mr. OMMISSION APPROVED ESOLUTION O PBR A RELIMINARY OND ESOLUTION OF THE Alford and unanimously carried, the SBRC OUTH END EDEVELOPMENT OMMISSION Commission approved Resolution No. 2798, SB, AUTHORIZING THE ISSUANCE OF OUTH END a Preliminary Bond Resolution of the South I,RDR NDIANA EDEVELOPMENT ISTRICT EVENUE Bend Redevelopment Commission DB(CI) ISTRICT ONDS OVELESKI MPROVEMENTS 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 financial consultant for this bond issue. CP Upon a motion by Ms King, seconded by Mr. OMMISSION APPROVED THE ROJECT A SSIGNMENT PROPOSAL FOR FINANCIAL Alford and unanimously carried, the CONSULTING SERVICES RELATED TO THE Commission approved the Project CS OVELESKI TADIUM BOND ISSUE 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 SITA Mr. Relos noted that items 6.C.(3), (5), (6) TAFF REPORT ON VY ECH CQUISITIONS 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 16 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued… (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. 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 17 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued… 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. 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 18 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) continued… contamination. Phifer Environmental has proposed a cost for these environmental services not to exceed $5,175. Staff recommends approval. C Upon a motion by Ms. King, seconded by OMMISSION ACCEPTED THE PROPOSAL FROM PES HIFER NVIRONMENTAL ERVICES FOR Mr. Downes and unanimously carried, the SPIIE UPPLEMENTAL HASE NVIRONMENTAL Commission accepted the proposal from A1521/1527S.KS SSESSMENT OF ENDALL TREET Phifer Environmental Services for FOR THE SCOPE OF SERVICES AND FEE PROPOSED 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 value of the property at $237,500, the 19 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued… 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 20 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued… 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 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. CRN.2786 Upon a motion by Ms. King, seconded by OMMISSION APPROVED ESOLUTION O $150,105 AND RELOCATION EXPENSES OF Mr. Downes and unanimously carried, the RELATED TO ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 2786 AEDA.(202 IRPORT CONOMIC EVELOPMENT REA and relocation expenses of $150,105 related &130E.SS,125&127E.O AMPLE TREET HIO to acquisition of property in the Airport S,SP) TREET INCO OOLS 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.) 21 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (4) continued… 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. CRN.2792 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AND ACCEPTING A COUNTER OFFER Mr. Alford and unanimously carried, the FOR THE ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 2792 AEDA. IRPORT CONOMIC EVELOPMENT REA approving and accepting a counter offer of (905-909W.IA.) NDIANA VE $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 22 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (5) continued… 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). 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 façade, 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 23 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (5) continued… 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. RN.2793 Upon a motion by Ms. King, seconded by ESOLUTION O RELATED TO A ACQUISITION OF PROPERTY IN THE IRPORT Mr. Downes and unanimously carried, the EDA.(E CONOMIC EVELOPMENT REA NYART Commission approved Resolution No. 2793 M,122-124E.S117-123E. OTORS AMPLE AND related to acquisition of property in the O) HIO 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) CRN.2800 Upon a motion by Ms. King, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AND ACCEPTING A COUNTER OFFER Mr. Downes and unanimously carried, the FOR THE ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 2800 AEDA. IRPORT CONOMIC EVELOPMENT REA approving and accepting a counter offer for (EM) NYART OTORS 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 24 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (7) continued… 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. CRN.2794 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Mr. Alford and unanimously carried, the AEDA IRPORT CONOMIC EVELOPMENT REA Commission approved Resolution No. 2794 (1514S.SS) COTT TREET 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 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 25 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (8) continued… 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. 26 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (8) continued… CRN.2795 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Mr. Alford and unanimously carried, the AEDA IRPORT CONOMIC EVELOPMENT REA AND Commission approved Resolution No. 2795 $548,000.(230E. OF RELOCATION EXPENSES related to acquisition of property in the SS,DR) AMPLE TREET ISCOUNT ENTAL 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. COP Upon a motion by Ms. King, seconded by OMMISSION APPROVED THE LIVER LOW MSA EMORIAL CULPTURE GREEMENT 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 thatn September 17, o 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 27 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (10) continued… 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. 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. C Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED THE RELOCATION 15031505P EXPENSES FOR AND RAIRIE FOR A Ms. King and unanimously carried, the $35,000 TOTAL OF Commission approved the relocation 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. CC Upon motion by Mr. Downes, seconded by OMMISSION APPROVED THE ONFIDENTIAL SAR ETTLEMENT GREEMENT AND ELEASE WITH Mr. Alford and unanimously carried, the AFMIC FFILIATED NSURANCE OMPANY Commission Confidential Settlement OP CONCERNING THE FORMER LIVER LOW Agreement and Release with Affiliated FM W ORKS PROPERT Insurance Company concerning the former Oliver Plow Works property 28 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) D. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. E. South Side Development Area 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 There was no business in the South Side Development Area. F. 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. 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 29 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) G. Ratification of Services Contracts continued… CS Upon a motion by Mr. Downes, seconded by Mr. OMMISSION RATIFIED THE ERVICES C ONTRACTS APPROVED BY STAFF SINCE Alford and unanimously carried, the Commission O15,2010 CTOBER 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. 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 CP Upon a motion by Ms. King, seconded by Mr. OMMISSION RATIFIED THE ROJECT A SSIGNMENT APPROVED BY STAFF SINCE Downes and unanimously carried, the Commission O15,2010 CTOBER 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. (Façade 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 30 South Bend Redevelopment Commission Rescheduled Regular Meeting –November 2, 2010 6. NEW BUSINESS (CONT.) J. Other (1) continued… 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. CA Upon a motion by Ms. King, seconded by OMMISSION APPROVED THE DDENDUM TO APS GREEMENT FOR ROGRAMS AND ERVICES Mr. Downes and unanimously carried, the NNN,I. WITH EAR ORTHWEST EIGHBORHOOD NC Commission approved the Addendum to (FMGP, AÇADE ATCHING RANT ROGRAM Agreement for Programs and Services with PA) ORTAGE VENUE Near Northwest Neighborhood, Inc. (Façade Matching Grant Program, Portage Avenue) 7. PROGRESS REPORTS PR There was no report. ROGRESS EPORTS 8. NEXT COMMISSION MEETING NCM The next meeting of the Redevelopment Commission is EXT OMMISSION EETING scheduled for Friday, November 19, 2010 at 10:00 a.m. 9. ADJOURNMENT A There being no further business to come before the DJOURNMENT Redevelopment Commission, the meeting was adjourned at 11:12 a.m. 31