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HomeMy WebLinkAbout01-14-11 Redevelopment Commission Meeting SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING January 14, 2011 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 Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Members Absent: Ms. Stephanie Spivey Legal Counsel: Mr. Charles S. Leone, Esq. Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Robert Mathia, Economic Development Specialist Mrs. Cheryl Phipps, Recording Secretary Mr. Matt Sikora, Economic Development Specialist Mr. David Relos, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mr. Tom Price, Mayor’s Office Mr. Jeff Gibney, Executive Director Ms. Mo Miller, Prism Science Ms. Geri Hathaway, Hathaway2 Ms. GlendaRae Hernandez Mr. Richard Siri, Enyart Motors 2. APPROVAL OF MINUTES A. Approval of Minutes of the Annual Organizational Meeting of Monday, January 3, 2011. CM Upon a motion by Mr. Downes, seconded by Mr. OMMISSION APPROVED THE INUTES OF THE AOM NNUAL RGANIZATIONAL EETING OF Varner and unanimously carried, the Commission M,J3,2011 ONDAY ANUARY approved the Minutes of the Annual Organizational Meeting of Monday, January 3, 2011. South Bend Redevelopment Commission Regular Meeting –January 14, 2011 6. NEW BUSINESS (CONT.) B. Approval of Minutes of the Special Meeting of Monday, January 3, 2011. CM Upon a motion by Mr. Downes, seconded by Mr. OMMISSION APPROVED THE INUTES OF THE SMM,J3, PECIAL EETING OF ONDAY ANUARY Varner and unanimously carried, the Commission 2011 approved the Minutes of the Special Meeting of Monday, January 3, 2011. 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted January 14, 2011 for approval. 305 FUND SBCDA BOND L.L. Geans Construction Co. 107,084.50 Coveleski Stadium Wall 324 AIRPORT AEDA Christopher B. Burke Engineering 7,707.88 Demolition of 236 East Sample Ken Herceg & associates 9,916.13 Supplemental Agreement No 3 Commerce Dr/Sheridan The Blue Waters Group, Inc. 60,144.33 Ignition Park for Marketing South Bend Water Works 105.41 1313 Prairie Ave LL Geans 46,431.25 Oliver Plow Memorial Oliver Trail Weaver boos Consultants 910.00 Studebaker Area A Demolition - Phase IV Innovation Park 630.00 Monthly Office Space Rental Ken Herceg & associates 500.00 Supplemental Agreement No. 3 Commerce Dr. DHA 9,943.00 Mayflower Road Realignment & Improvement 5,301.49 Erskine Detention construction Christopher B Burke Observation DHA 1,085.00 Preparation of Airport Industrial Park South Share Railroad Easement DHA 601.00 Oliver Industrial Park Abonmarche 3,066.00 Jefferson Blvd & Niles Ave Streetscape Modernization Sopko, Nubbaum, Inabnit & Kaczmarek 67.50 Legal services 2 South Bend Redevelopment Commission Regular Meeting –January 14, 2011 3. APPROVAL OF CLAIMS (CONT.) 420 FUND TIF DISTRICT-SBCDA GENERAL CR Richard Ellis 1,407.21 LaSalle Hotel Indiana & Michigan Power Co 7.49 325 S. Lafayette Indiana Michigan Power 271.68 329 Lafayette Blvd Downtown South Bend, Inc 28,125.00 Beautification Program Grainger South Bend Police Report Theft 616.15 from Vehicle ARNT Main & Jefferson Parking Lot 11,475.00 Repairs Meridian Title Corporation Wire Transfer to Purchase 122 S Niles Ave - Closing 12/28/10 @ 384,328.69 1:30 Ampco System Parking 225 Main St / St. Joe Street Surface 2,106.74 South Bend Tribune Notice of Bidders 103.82 Tri County News Notice of Bidders 65.55 LL Geans Construction Co. Coveleski Stadium Wall 66,338.00 Edward J. White, Inc. Purchase of Right-A-Way for 1,224.83 Commerce Dr Sopko, Nubbaum, Inabnit & Kaczmarek Legal service 16,537.50 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT Carl Walker Memorial Hospital Streetscape 2,815.42 Improvements Ziolkowski Construction Bartlett Street Parking Structure 36,600.00 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA #1 S Main To Lafayette Survey Lawson-Fisher Associates, P.C. 22,160.78 454 AIRPORT URBAN ENTERPRISE ZONE Job Readiness Project Impact 58,332.00 $ 886,009.35 CC Upon a motion by Mr. Downes, seconded by Mr. Alford OMMISSION APPROVED THE LAIMS J14,2011, SUBMITTED ANUARY AND ORDERED and unanimously carried, the Commission approved the THE CHECKS TO BE RELEASED Claims submitted January 14, 2011, and ordered checks to be released. 3 South Bend Redevelopment Commission Regular Meeting –January 14, 2011 4. COMMUNICATIONS TC. There were no Communications. HERE WERE NO OMMUNICATIONS 5. OLD BUSINESS A. Other (1) Second Amended Resolution No. 2818 setting a public hearing on the appropriation of tax increment financing revenues from various allocation areas for the payment of certain obligations and expenses related to their respective allocation areas and other related matters. Ms. Jennings noted that there was again miscommunication about the publishing of the legal notices for public hearings intended for January 21. We are now asking that public hearings be set on these three resolutions February 8, 2011 at 4:00 p.m. CSA Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ECONDED MENDED RN.2818 ESOLUTION O SETTING A PUBLIC Mr. Alford and unanimously carried, the HEARING ON THE APPROPRIATION OF TAX Commission approved Seconded Amended INCREMENT FINANCING REVENUES FROM Resolution No. 2818 setting a public hearing VARIOUS ALLOCATION AREAS FOR THE PAYMENT on the appropriation of tax increment OF CERTAIN OBLIGATIONS AND EXPENSES financing revenues from various allocation RELATED TO THEIR RESPECTIVE ALLOCATION AREAS AND OTHER RELATED MATTERS areas for the payment of certain obligations and expenses related to their respective allocation areas and other related matters. (2) Filing of Resolution No. 2829 and setting a public hearing for 4:00 p.m., February 8, 2011 on Resolution No. 2829 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2011, and ending December 31, 2011 including all outstanding claims and obligations, fixing 4 South Bend Redevelopment Commission Regular Meeting –January 14, 2011 a time when the same shall take effect (Blackthorn Golf Course) C Upon a motion by Mr. Downes, seconded by OMMISSION ACCEPTED FOR FILING RN.2829 ESOLUTION O Mr. Alford and unanimously carried, the Commission accepted for filing Resolution No. 2829. (3) Filing of Resolution No. 2830 and setting a public hearing for 4:00 p.m., February 8, 2011 on Resolution No. 2830 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2011, and ending December 31, 2011 including all outstanding claims and obligations, fixing a time when the same shall take effect (Fund 425, Leighton Retail Space and Courtyard and Wayne St Garage Retail) C Upon a motion by Mr. Downes, seconded by OMMISSION ACCEPTED FOR FILING RN.2830 ESOLUTION O Mr. Alford and unanimously carried, the Commission accepted for filing Resolution No. 2830. 6. NEW BUSINESS A. South Bend Central Development Area TSB There was no business in the South Bend Central HERE WAS NO BUSINESS IN THE OUTH END CDA ENTRAL EVELOPMENT REA Development Area. B. Airport Economic Development Area (1) Resolution No. 2817 establishing the Fair Use Value of and offering for sale certain property in the Airport Economic Development Area (Ignition Park) Mr. Sikora noted that Resolution No. 2817 sets the fair market value for property in 5 South Bend Redevelopment Commission Regular Meeting –January 14, 2011 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (1) continued… Ignition Park. The entire property is approximately 87 acres and its uses are defined under the Ignition Park PUD Zoning Ordinance. The proposed fair market value of the property as derived by two independent MAI appraisals is $26,250 per acre for lots two to five acres in size, $24,500 per acre for lots over five acres up to ten acres, and $23,625 per acre for lots larger than ten acres. Staff requests approval of Resolution No. 2817. Mr. Varner asked whether these prices are comparable to lots in Edison Lakes. Mr. Relos responded that they are comparable to lots for sale in Oliver Plow Industrial Park. CRN.2817 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O FUV ESTABLISHING THE AIR SE ALUE OF AND Ms. King and unanimously carried, the OFFERING FOR SALE CERTAIN PROPERTY IN THE Commission approved Resolution No. 2817 AEDA IRPORT CONOMIC EVELOPMENT REA establishing the Fair Use Value of and (IP) GNITION ARK offering for sale certain property in the Airport Economic Development Area (Ignition Park) (2) Bid Specifications and Design Considerations for Ignition Park. Mr. Sikora noted that the Bid Specifications and Design Considerations follow to the letter the Ignition Park PUD approved by the Common Council.on December 13, 2010. Mr. Varner noted that the bid packet contains a resolution approved in 1982 encouraging developers to pay prevailing wage rates. He 6 South Bend Redevelopment Commission Regular Meeting –January 14, 2011 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (2) continued… suggested the policy of including this document in the bid packet needs to be reconsidered. It is extremely out of date and sends the wrong message to potential developers. He suggested not including it in the packet. Staff and the legal department will review the requirements and make a recommendation for future packets. CB Upon a motion by Ms. King, seconded by OMMISSION APPROVED THE ID SDC PECIFICATIONS AND ESIGN ONSIDERATIONS Mr. Downes and unanimously carried, the IP FOR GNITION ARK Commission approved the Bid Specifications and Design Considerations for Ignition Park. (3) Authorization requested to publish the Notice of Intended Disposition of Property in the Airport Economic Development Area with publication dates of January 21 and January 28, 2011 and receipt of bids at 4:00 p.m., February 8, 2011. Mr. Sikora noted that the agenda was in error. The deadline for receipt of bids is 3:00 p.m., February 8, 2011, not 4:00 p.m. C Upon a motion by Mr. Downes, seconded by OMMISSION AUTHORIZED PUBLICATION OF THE NID OTICE OF NTENDED ISPOSITION OF Ms. King and unanimously carried, the PAE ROPERTY IN THE IRPORT CONOMIC Commission authorized publication of the DA EVELOPMENT REA WITH PUBLICATION DATES Notice of Intended Disposition of Property in J21J28,2011 OF ANUARY AND ANUARY AND the Airport Economic Development Area 3:00..,F8, RECEIPT OF BIDS AT PM EBRUARY 2011 with publication dates of January 21 and January 28, 2011 and receipt of bids at 3:00 p.m., February 8, 2011. 7 South Bend Redevelopment Commission Regular Meeting –January 14, 2011 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (4) Additional relocation costs for Enyart Motors, 122 E. Sample St. Mr. Relos noted that Items 6B(4) and (5) go hand in hand and must be approved as a pair. On November 2, 2010, the Commission approved the Acquisition Offer and Counter Offer as well as relocation expenses for Enyart Electric Motor Repair (Enyart), located at 122 E. Sample St. The acquisition and relocation of Enyart will allow its current building along East Sample to be used by Ivy Tech for the expansion of much needed classroom, storage, and /or parking. On November 19, 2010, the Commission completed the disposition process for 1313 Prairie Ave, by publicly opening bids. There were no conforming bids for that property which had a disposition offering price of $189,000. Enyart bid, and continues to offer to purchase 1313 Prairie for $165,000. Enyart has been in business since 1965, and recently acquired another electric motor repair business in Elkhart. It has outgrown its current location, and would like to purchase and relocate to 1313 Prairie to consolidate and grow the two businesses. When considering its move to 1313 Prairie, the owners of Enyart discussed their needs with contractors who, based on those conversations, gave them an estimate of costs for the renovations necessary to accommodate their move. Enyart felt those estimates were close enough to move 8 South Bend Redevelopment Commission Regular Meeting –January 14, 2011 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (4) continued… forward with its and our plans to relocate them. Upon closer inspection by the contractors after closing, they discovered several more items not originally included in their estimates, such as ADA compliance, sprinklers needing to be moved and reconfigured, and transformers not being able to be moved and reused. Those items have increased the project from $132,318 to $250,788, an additional $118,470. Though this increase came as a surprise to all involved, upgrading this building on the western edge of Ignition Park, which has been vacant for many years, will benefit this important corridor of Ignition Park. Both the building’s interior and exterior will be upgraded, and eventually, at a cost of approximately $60,000 to Enyart, the northern half of this parcel will be cleaned and cleared of its unsightly chain link fence and scrub trees. This move and investment will allow a long time business in South Bend to expand, relocate, and stay in South Bend. Enyart will not seek tax abatement for these improvements. This move also helps to address Ivy Tech’s tremendous enrollment growth by allowing them to expand next to their current campus. And finally, this move takes a vacant 9 South Bend Redevelopment Commission Regular Meeting –January 14, 2011 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (4) continued… property near Ignition Park, upgrade it, and increase its overall value. For these three reasons, staff requests approval of the Contract for Purchase and Sale of 1313 Prairie Ave. in the amount of $165,000, and an additional $118,470 ($250,788 total) in relocation assistance for the acquisition and relocation of Enyart from 122 E. Sample St. to 1313 Prairie Ave. Mr. Relos acknowledged the large increase in costs for this transaction, but felt it is a great project and will have a similar impact on its surroundings as did Habitat for Humanity’s renovation of the old Kroger store on S. Main Street. Mr. Downes asked how many jobs will be coming from the Elkhart location to South Bend. Mr. Siri responded that they currently employ eight people at the Sample Street location. There are four employees in Elkhart. Two of those will be retiring. Two will come to South Bend. Mr. Siri also noted that the new location will allow the company to grow. C Upon a motion by Ms. King, seconded by OMMISSION APPROVED THE ADDITIONAL $118,470E RELOCATION COSTS OF FOR NYART Mr. Downes and unanimously carried, the M1313PA. OTORS RELOCATION TO RAIRIE VE Commission approved the additional relocation costs of $118,470 for Enyart Motors relocation to 1313 Prairie Ave. 10 South Bend Redevelopment Commission Regular Meeting –January 14, 2011 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (5) Contract for Purchase and Sale of 1313 Prairie Avenue (Enyart Motors, 1313 Prairie Ave.) CC Upon a motion by Ms. King, seconded by OMMISSION APPROVED THE ONTRACT FOR PS1313PA URCHASE AND ALE OF RAIRIE VENUE Mr. Downes and unanimously carried, the (EM,1313PA.) NYART OTORS RAIRIE VE Commission approved the Contract for Purchase and Sale of 1313 Prairie Avenue (Enyart Motors, 1313 Prairie Ave.) C. West Washington-Chapin Development Area (1) Authorization to begin the process to amend the West Washington-Chapin Development Area Development Plan. (Add properties to the List of Properties to be Acquired) Mr Relos noted that staff requests the Commission authorize it to begin the statutory process to amend the development plan of the West Washington Chapin Development Area (WWCDA) to add two parcels to the acquisition list: two parcels directly north of Tippecanoe Place Restaurant. The parcel along Washington Street has a one story red brick commercial building on it. The parcel along Taylor Street has a one story cement block commercial building on it. Both of these buildings are out of character with the historic neighborhood which surrounds them. Both buildings have been vacant for many years and are in a state of disrepair. Upon acquisition of these properties, they will be cleared and the lots 11 South Bend Redevelopment Commission Regular Meeting –January 14, 2011 6. NEW BUSINESS (CONT.) C. West Washington-Chapin Development Area () continued… offered for market rate housing. Staff requests the Commission authorize it to begin the preparation of plans, maps, and related property information for the two properties mentioned above. Once the information is gathered, staff will present the information to the Commission, and then, upon approval of the planning information, will present a Declaratory Resolution to amend the acquisition list of the WWCDA. Separate resolutions will also be submitted for approval to the Area Plan Commission and the Common Council before a final public action before the Commission in the form of a public hearing and Confirming Resolution. C Upon a motion by Mr. Downes, seconded by OMMISSION AUTHORIZED STAFF TO BEGIN THE WW- PROCESS TO AMEND THE EST ASHINGTON Ms. King and unanimously carried, the CDAD HAPIN EVELOPMENT REA EVELOPMENT Commission authorized staff to begin the P.(AL LAN DD PROPERTIES TO THE IST OF process to amend the West Washington- PA) ROPERTIES TO BE CQUIRED Chapin Development Area Development Plan. (Add properties to the List of Properties to be Acquired) D. South Side Development Area There was no business in the South Side Development Area. E. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. 12 South Bend Redevelopment Commission Regular Meeting –January 14, 2011 F. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. G. Ratification of Services Contracts Commission Role in Contract Staff Transaction Contractor Service Provided Amount Member 18-2066-2457, 18-Acquisition Meridian Title Corp. Title Work $100/ea Schalliol 2066-2456, 04-1011-$700 total 018901, 04-1020- 0339, 18-2184-6938, 18-2184-693801 and 18-2184-693802 1512 Kemble Acquisition Michaels Appraisal Appraisal $350 Relos Services 1512 Kemble Acquisition Witt Appraisal Appraisal $350 Relos Services CS Upon a motion by Mr. Downes, seconded by Ms. OMMISSION RATIFIED THE ERVICES C ONTRACTS APPROVED BY STAFF SINCE King and unanimously carried, the Commission D17,2010 ECEMBER ratified the Services Contracts approved by staff since December 17, 2010. 7. PROGRESS REPORTS PR Mr. Gibney distributed Department of Community & ROGRESS EPORTS Economic Development Annual Reports to the Common Council. He thanked the Commission for its support for the projects staff has put forward. He commended the staff for the enormous amount of work accomplished in 2010. He is extremely proud of what was accomplished. Mr. Mathia noted the Annual Reports contain a report on 2011 tax abatements as requested by Mr. Downes at the last meeting. 13 South Bend Redevelopment Commission Regular Meeting –January 14, 2011 8. NEXT COMMISSION MEETING NCM The next meeting of the Redevelopment Commission is EXT OMMISSION EETING scheduled for Friday, January 21, 2011 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 10:30 a.m. 14