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Home My WebLink About2 Minutes 12-28-10 MeetingSOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING December 28, 2010 10:00 a.m. Presiding: David A. Varner, Vice-President 1. ROLL CALL Members Present: Members Absent: Legal Counsel: 227 West Jefferson Boulevard South Bend, Indiana Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Ms. Marcia Jones, President Ms. Stephanie Spivey Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs. Jenny Hullinger, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. David Relos, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Ms. Rita Kopala Ms. GlendaRae Hernandez Ms. Mo Miller, Prism Science Mr. Phillip Faccenda, Attorney Mr. Richard Nussbaum, Attorney Mr. Donald Schoenfeld 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, December 17, 2010. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, December 17, 2010. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, DECEMBER 17, 2010 There were no Claims for approval. No CLAIMS FoR APPROVAL South Bend Redevelopment Commission Regular Meeting -December 28, 2010 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Public Hearing (1) Public Hearing on Resolution No. 2833 amending the Development Plan for the South Bend Central Development Area and adding interests in one or more parcels to the List of Parcels to be Acquired. Mr. Inks noted that Resolution No. 2833 adds interest in two parcels to the List of Parcels to be Acquired, those parcels being the two parcels on which sit the parking garage that is integral to the 1 s` Source/Marriott complex. He noted that the Public Hearing file is complete, containing a copy of Declaratory Resolution No. 2812 amending the Development Plan for the South Bend Central Development Area, a copy of the Area Plan Commission Resolution No. 213- l0approving the Declaratory Resolution, a copy of the Common Council Resolution No. 4071-10 approving the Area Plan Commission's resolution, a copy of the Notice of Hearing, a copy of Resolution No. 2833, and affidavits from the Tri-County News and the South Bend Tribune that the Notice of Hearing was published in those newspapers on December 17, 2010. The mail was checked prior to the meeting and there were no written remonstrances received related to Resolution No. 2833. THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS 2 South Bend Redevelopment Commission Regular Meeting -December 28, 2010 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Mr. Inks noted that acquisition of the 1 S` Source/Marriott parking garage will retain l sc Source and its corporate offices in the downtown. They employ 595 people in South Bend. It would also retain an upscale hotel at the site. The hotel currently employs 100 people. There are also several tenants in the building that would be positively impacted by this project. We estimate that as many as 300 additional jobs would be retained in those tenant offices. The building itself will receive $14M of new investment. Mr. Varner opened the Public Hearing for whoever wished to speak regarding Resolution No. 2833. There was no one who wished to speak. Mr. Varner closed the Public Hearing for whatever action the Commission wished to take. (2) Consideration of Resolution No. 2833. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution no. 2833 amending the Development Plan for the South Bend Central Development Area and adding interests in one or more parcels to the List of Parcels to be Acquired. B. South Bend Central Development Area (1) Staff report on acquisition of property in the South Bend Central Development Area. (ls` Source/Host Parking Garage) PUBLIC HEARING ON RESOLUTION NO.2833 COMMISSION APPROVED RESOLUTION NO. 2833 AMENDING THE DEVELOPMENT PLAN FOR THE SOUTH BF;ND CENTRAL DEVELOPMENT AREA AND ADDING INTERESTS IN ONE OR MORE PARCELS '1'O THE LIST OF PARCELS TO BE ACQUIRED 3 South Bend Redevelopment Commission Regular Meeting -December 28, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... Mr. Nussbaum noted that on December 3, the Commission heard a lengthy explanation regarding the Memorandum of Understanding (MOU) related to this project. None of these documents in any way modifies that agreement. The documents supplement and help to implement that agreement. Mr. Nussbaum noted that the Garage Purchase Agreement confirms the authority of the parties to enter into the agreement. It sets out what documents are to be exchanged at closing. The closing is scheduled to take place later this day. And it provides for an allocation of costs at closing. The city is not paying any closing costs. All $6.SM that the city is putting into the project will be put into various escrow accounts to be used for improvements. Mr. Nussbaum noted that the Third Amendment to the Operation, Maintenance and Easement Agreement (OME) seeks to keep in place the current agreement with regard to the operation of the parking garage. Part of the MOU was that although the city will own the garage, both ls` Source and Host will be the entities that will operate it and incur all the expenses with regard to the operations. Mr. Nussbaum noted that there are three Escrow Agreements: an Atrium Escrow, a ls` Source Improvement Escrow and a Host Improvement Escrow. Those are the three 4 South Bend Redevelopment Commission Regular Meeting -December 28, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... accounts that the city's $6.SM will be deposited into. The MOU requires that the private parties put their own money into the improvements before any of the city money is spent. The Board of Public Works will be appointed as the city's agent to ensure that those improvements are done in the manner they are supposed to be. Pursuant to the MOU there were conveyance payments made by ls` Source and Host as a result of the garage. Those conveyance payments are being terminated. That amounted to about $36,000 per year. Mr. Nussbaum also noted that an additional document indicates that Doubletree will be an approved hotel for the Host site even though for 2011 its ranking dropped from Upper Upscale to Upscale. All parties agree to this. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved the Garage Purchase Agreement, the Third Amendment to the Operation, Maintenance and Easement Agreement, the Atrium Escrow Agreement, the 1 S` Source Improvement Escrow Agreement, the Host Improvement Escrow Agreement, the 1 S` Source Termination Conveyance Agreement, the Host Termination Conveyance Agreement, and the Doubletree Side Letter Agreement. COMMISSION APPROVED THE GARAGE PURCHASE AGREEMENT, THE THIRD AMENDMENT "r0 THE OPERATION, MAINTENANCE AND EASEMENT AGREEMENT, TIiF. ATRIUM ESCROW AGREEMENT, THE 1ST SOURCE IMPROVEMENT ESCROW AGREEMENT 'fHE HOST IMPROVEMENT ESCROW AGREEMENT, THE 1ST SOURCE TERMINATION CONVEYANCE AGREEMENT, THE HOST TERMINATION CONVEYANCE AGREEMENT, AND THE DOUBLETREE SIDE LETTER AGREEMENT South Bend Redevelopment Commission Regular Meeting -December 28, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area Mr. Inks asked that Item 6.B.(3) be moved up on the agenda as it also relates to the 1 S` Source/ Marriott project. There was no objection and the item was moved up to be considered at this time. (3) Resolution No. 2834 authorizing the Director of Economic Development to approve and execute documents related to I`` Source Parking Garage Project Mr. Inks noted that there is a closing scheduled for 12:00 p.m. today on this project. In case there are additional documents that need to be signed at closing, Resolution No. 2834 authorizes Mr. Inks to sign those documents. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2834 authorizing the Director of Economic Development to approve and execute documents related to 1 S` Source Parking Garage Project. (2) Proposal for professional services in the South Bend Central Development Area (Fred's Transmission Demolition Oversight and Environmental Review) Mr. Schalliol noted that Wightman Petrie was awarded a contract for a Phase I environmental assessment, preparation ol~ demolition specifications and some instruction services related to the Fred's Transmission & Clutch site and the Coveleski Housing Block. That contract was for $27,220. Since then, there were many COMMISSION APPROVED RESOLUTION NO.2834 AUTHORIZING THE DIRECTOR OF ECONOMIC DEVELOPMENT TO APPROVE AND EXECUTE DOCUMENTS RELATED TO 1ST SOURCE PARKING GARAGE PROJECT 6 South Bend Redevelopment Commission Regular Meeting -December 28, 2010 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... unforeseen circumstances, including discovery of seven underground storage tanks. Therefore, the scope of services has been expanded to include curb and walk and site grading and landscaping, additional demolition oversight and environmental testing and some demolition management. The fee for the additional scope of services is $17,000, making the total contract $44,220. Staff requests approval of the fee for additional services. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission accepted the proposal from Wightman Petrie for the additional scope of services and fee proposed. C. Airport Economic Development Area (1) Proposal for professional services in the Airport Economic Development Area (Planning and Survey Word to Create Minor Subdivision in the Oliver Plow Industrial Park) Mr. Relos noted that staff solicited a proposal from Danch Harner and Associates to do the necessary planning and survey work to create a minor subdivision of proposed Lot 8 in the Oliver Plow Industrial Park. An interested party would like to relocate its business to the eastern portion of Lot 8, the lot occupied by the new Underground Pipe and Valve building. Lot 8 was originally laid out as a 7.84 acre lot. The amount of land required COMMISSION ACCEPTED THE PROPOSAL. FROM WIGHTMAN PETRIE FOR THE ADDITIONAL SCOPE OF SERVICES AND FEE PROPOSED 7 South Bend Redevelopment Commission Regular Meeting -December 28, 2010 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... for this business is 4.64 acres. The proposal from Danch Harner is in the amount of $3,850 plus possible review fees of $325. Staff requests approval of a fee of $4,175 to subdivide the lot so that the new development can occur. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission accepted the proposal from Danch Harner and Associates in the amount of $4,175 for the scope of services proposed. 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 There was no business in the Northeast Neighborhood Development Area. G. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. 7. PROGRESS REPORTS COMMISSION ACCEPTED THE PROPOSAI. FROM DANCH HARNER AND ASSOCIATES IN THE AMOUNT OF $4,175 FOR "THE SCOPE OF SERVICES PROPOSED There was no report. PROGRESS REPORTS South Bend Redevelopment Commission Regular Meeting -December 28, 2010 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING its Annual Organizational Meeting schedule for January 3, 2011 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Ms. King made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 10:18 a.m. Donald E. Inks, Director 9