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HomeMy WebLinkAbout2(A) Minutes of 1/21/11SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING January 21, 2011 10:00 a.m. Presiding: Marcia I. Jones, President 1. ROLL CALL Members Present: Members Absent: Legal Counsel: 227 West Jefferson Boulevard South Bend, Indiana Ms. Marcia Jones, President Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Ms. Stephanie Spivey Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. David Relos, Economic Development Specialist Mr. Matthew Sikora, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mr. Tom Price, Mayor's Office Mr. Jeff Gibney, Executive Director Ms. Rita Kopala Ms. GlendaRae Hernandez Ms. Amber Zebell, Prism Science Mr. Dennis Andres, Morris PAC Mr. Paul Moreland, Parks Dept. Mr. Mike Dyszkiewicz, Parks Dept. Mr. Jim Monroe, Morris PAC Ms. Mary Jo Ogren, Morris PAC Mr. Tim Wall, Ken Herceg & Assoc. Mr. Kevin Dreyer, Morris Entertainment, Inc. Mr. Jack Siefer, Michiana Lock & Key Mr. Ray Derucki Ms. Geri Hathaway, Ignition Park Ms. Catherine Hostetler, Historic Preservation Mr. John Yarger, Morris Entertainment, Inc. Ms. Katrina Marquardt Ms. Jackie Homann, Morris Entertainment, Inc. Ms. GlendaRae Hernandez Mr. Marty Murphy, James Childs Architects South Bend Redevelopment Commission Regular Meeting -January 21, 2011 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, January 14, 2011. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, January 14, 2011. 3. APPROVAL OF CLAIMS There were no Claims for Approval. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. Mr. Inks asked that Item 7.C. be heard at this time. There was no objection and Item 7.C. was moved up on the agenda. 7. PROGRESS REPORTS C. Other -Morris Performing Arts Center Mr. Dennis Andres, Director of the Morris Performing Arts Center, gave this report. Mr. Andres noted that the Morris PAC was renovated ten years ago at a cost of over $17M. During the next ten years the Morris has been ranked in the 100 top theaters in the world. The Morris provides over $SM in economic impact to the downtown each year. Mr. Andres noted that there are five items that are badly in need of repair or renovation after these ten years. 1. Windows: The original renovation ran out of money so window replacement was not done at that time. It desperately needs to be done now. COMMISSION APPROVED T'HE MINUTES OF THE REGULAR MEETING OF FRIDAY, JANUARY 14, 2011 THERE WERE NO CLAIMS FOR APPROVAL THERE WF:RF. NO COMMUNICATIONS THERE WAS NO OLD BUSINESS PROGRESS REPORT ON MAINTENANCE NEEDS AT THE MORRIS PERFORMING ARTS CENTER AND THF: JON R. HUNT PLAZA 2 South Bend Redevelopment Commission Regular Meeting -January 21, 2011 The windows have single pane glass. The wood is beginning to deteriorate. They will be renovated according to Historic Preservation guidelines. 2. Main Doors: The main doors have been deteriorating for years. The Morris has made temporary repairs, but they need to be completely replaced. 3. Lower Level Bathrooms: Mr. Andres noted that at a recent event, women, in desperation, took over the men's restroom to gain two additional stalls. The recommendation is to convert the lower men's bathroom to a women's bathroom, adding six stalls. Anew men's bathroom will be constructed from space taken from the Morris Bistro. 4. Orchestra Pit: "The current orchestra pit is an "erector set." It is safe, but it does not serve the Morris' loading and unloading needs. The current situation raises the cost of a show because additional people must be hired to load/unload. They want a hydraulic floor that raises and lowers as necessary. The Morris Entertainment Board is willing to take on fundraising for the orchestra pit. With so many large projects doing fundraising right now, Mr. Andres wasn't sure how successful that attempt would be. 5. Tuck Pointing the North Wall: The original restoration of the building did not address the north wall. Forty percent of the bricks on the north wall are deteriorating. They are very concerned that the deterioration there will cause major problems elsewhere. Mr. Andres noted that each ticket includes a surcharge for building maintenance. He believes they have been able to set aside enough funds from that source to make the repairs to the north wall. Mr. Andres asked that the Commission commit SBCDA TIF funds for the first three of the above 3 South Bend Redevelopment Commission Regular Meeting -January 21, 201 l projects. He noted that these repairs and renovations need to take place in the summer, the slowest time for the Morris' business. Mr. Andres then gave a report on the needs for the Jon R. Hunt Plaza. The Redevelopment Authority is the owner of the Morris, the Palais Royale and The Vine, as well as the Jon R. Hunt Plaza. The Parks Dept takes care of the upkeep of the plaza and the Morris schedules events there and runs the Fridays by the Fountain event. Over the last seven years the Commission and Morris have taken care of repairs that need to be made. Mr. Andres feels that the plaza has become a "money pit" and needs to be looked at to determine how much money we want to put into it to maintain it. The Morris and Parks have both reduced their budgets as the city has had to adjust to reduced income. They can no longer carry the plaza's expenses. Ken Herceg & Associates has submitted a proposal to perform such an examination of the plaza and make recommendations for its maintenance and any redesign to minimize maintenance costs. Mr. Downes asked whether the emergency funds the Commission committed last summer were then for naught. The fountain was not really fixed. Mr. Andres responded that that $10,000 or so spent in 2010 replaced the electronics in the fountain's mechanicals pit. The electronics boards run the pumps. The electronics are still fine. The pumps themselves are ruined. There will not be an active fountain this summer unless funds are allocated soon to fix the pumps. Mr. Varner asked if there is a plan for the plaza's long term use, so as to not spend money now that doesn't fit that long term plan. Mr. Andres responded that that is what the Herceg study will help to determine. Mr. Tim Wall, Herceg & Associates, noted that the 4 South Bend Redevelopment Commission Regular Meeting -January 21, 2011 fountain's pit has some significant code issues. Bandaids will no longer be good enough. Mr. Inks noted that Mr. Andres' presentation lays out the request and the costs associated with them. During the appropriations at the February 8 meeting the Commission may make decisions on what to fund at that time. Mr. Dreyer noted that the repairs to the Morris are not things that were improved in its renovation and then not taken care of. They are things that were put off at the time of the renovation and can no longer be put off. Ms. Hostetler noted that Historic Preservation does not like replacement windows. However, Historic Preservation does agree that these windows need to be replaced. The doors will actually be replaced. "the windows will be re-glazed and the wood sashes restored. Everything will be much more energy efficient. 6. NEW BUSINESS A. Housing (I) Loan and (rant in connection with the South Bend Home Improvement Program for property located at 909 Sancome Avenue. (Gloria Sharp) Mr. Inks noted that the loan is in the amount of $5,700; the grant is $5,530.17. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved the Loan and Grant in connection with the South Bend Home Improvement Program for property located at 909 Sancome Avenue. (Gloria Sharp) COMMISSION APPROVED THE LOAN AND GRAN ~ IN CONNECTION WITH THE SOUTH BEND HOMF. IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 909 SANCOME AVENUE. (GLORIA SHARP) 5 South Bend Redevelopment Commission Regular Meeting -January 21, 2011 B. South Bend Central Development Area (1) Administrative Settlement for Michiana Lock & Key (306 W. Monroe) Mr. Schalliol noted that on December 17, 2010 the Redevelopment Commission approved Resolution No. 2804 setting the acquisition offering price for the Michiana Lock & Key property ("ML&K") at 306 W Monroe Street at $65,000. As a follow-up to that presentation, staff has been working with the property owner to develop a comprehensive administrative settlement for the acquisition and relocation of ML&K from its present location to a new location in the East Bank Village at 621 East Jefferson Boulevard (immediately to the west of Rubin's Cleaners). The total proposed administrative settlement related to this acquisition and relocation that staff presents to the Redevelopment Commission is $340,000.00. For analysis purposes, the amount is broken into two parts Property Acquisition and Resettlement Costs. Property Acquisition The current ML&K property at 306 W. Monroe Street is 11,528 SF and consists of a single 2-story, 1,800 SF structure. The majority of the site is fenced and is used as a customer and employee parking area. The property sits on the corner of Monroe and Lafayette at a traffic signal. Because of the nature of the structure (house converted to a commercial business center) and the lack of adjacent commercial activity in the area, the property appraised low at $65,000, $5.64/SF. In comparison, the Harmon Glass parcel is 6 South Bend Redevelopment Commission Regular Meeting -January 21, 2011 17,000 SF ($150,000 or $8.82/SF), the Richey's Radiator parcel is 11,440 SF ($190,000 or $16.64/SF), and the Fred's Transmission parcel is 24,395 SF ($262,500 or $10.76/SF). The average per square foot price for the corners of Western and William was $12.07/SF in comparison to the $5.64/SF for Lafayette and Monroe. As a comparison, if the higher per SF cost is applied to the MI,&K property, the appraised value would be approximately $139,181. (2) Resettlement Costs The property that ML&K is interested in locating to in the East Bank at 621 E Jefferson Blvd consists of two parcels with a total property area of 6,700 SF and two buildings with the principal building having a footprint of roughly 2,262 SF. The parcel with the main building consists of only the building (about 2680 SF of land); all parking spaces and the second building are located on the second parcel (about 4,020 SF of land). The small building is owned and used by the property owner as a business office. He will relocate once the sale is completed. The sale price for the entire site is $200,000 and is approximately what was paid for the site five to ten years ago. There has not been a recent appraisal done on the Jefferson Street parcel, but the one done at the time the building was last sold valued it at just under $200,000. The proposed acquisition price for the parcel at 306 W. Monroe is $65,000 with a counter- offer/acquisition settlement value of $135,000 for a total site purchase amount of $200,000. Resettlement Costs The 614 Jefferson Street property needs some rehabilitation and upgrades to serve 7 South Bend Redevelopment Commission Regular Meeting -January 21, 2011 ML&K's business needs. A comprehensive list of relocation and resettlement costs has been prepared. The costs requested are all eligible expenses under the Federal HUD guidelines for relocation assistance. The items total $140,000 and include the following: - costs for interior build-out, facade and roof repair, and building code compliance - professional services costs like environmental studies, surveys and related expenses - demolition of the existing smaller building and parking lot repair to bring to code - business relocation related expenses - moving costs - utility reconnection services The costs projected for each of these categories is well researched by the owner of ML&K and his team. The total amount of rehabilitation and renovation costs associated with this project is $140,000. In Conclusion The future demolition of the Michiana Lock & Key structure and clean-up of the site will provide many benefits to the Coveleski Park project. By creating parking and access through this site, the city will be able to provide additional parking near the new center field entrance as well as to provide some off-game parking to adjacent property users. From the East Bank perspective, this acquisition will clean up a vacant building, bring a very strong tenant into the village core and ultimately remove the small, non- consistent commercial building off of this site. The move to the East Bank will allow 8 South Bend Redevelopment Commission Regular Meeting -January 21, 2011 ML&K, an existing business, to continue to serve the downtown business community as well as expand into the growing East Bank Village market. Staff requests Commission approval of this administrative settlement in a total amount of $340,000 to acquire the 306 W Monroe property and to relocate and resettle Michiana Lock & Key to the new property at 621 E Jefferson. Mr. Varner asked whether this acquisition is necessary for the improvements to Coveleski Park. Mr. Schalliol responded that it is not absolutely necessary. It is a good opportunity to provide additional parking for the Cove and to help an existing business to remain viable and grown. Mr. Downes said that an important aspect of the business move is its furtherance of the East Bank Village Plan. It fills a vacant building, demolishes another unsightly building, and may jumpstart some activity in the East Bank. Mr. Downes made a motion to approve the Administrative Settlement for Michiana Lock & Key at 306 W. Monroe. Ms. King seconded the motion. "The motion carried on a vote of three in favor. Mr. Varner was opposed. C. Airport Economic Development Area (1) Extension Addendum to Consulting Agreement by and between the City of South Bend, Department of Redevelopment and Blue Waters Group. Mr. Price explained that the third phase of COMMISSION APPROVED'~HE ADMINISTRATIVE SETTLEMENT FOR MICHIANA LOCK & KEY (306 W. MONROF.) 9 South Bend Redevelopment Commission Regular Meeting -January 21, 2011 the city's contract with Blue Waters Group ends January 31. There are a few projects that are not quite completed. He asked the Commission to extend the contract period to May 31, 2011. There are about $115,000 remaining in the contract. No additional funds are requested. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved the Extension Addendum to Consulting Agreement by and between the City of South Bend, Department of Redevelopment and Blue Waters Group, ending the term of the contract on May 31, 2011. (2) Resolution No. 2839 appointing Interim Architectural Review Board for Ignition Park. Mr. Relos noted that the recently adopted Ignition Park PUD requires the establishment of an Architectural Review Board to review all land uses as well as all site plans, landscape plans, open space /outdoor seating plans, building plans and sign plans for consistency and compatibility with the intent for Ignition Park. The ARB also must approve any land use or development within the Park. As such, the ARB must be in place before any development can occur in the Park. Since the land comprising Ignition Park is currently going through the disposition process, and there is a company who wishes to purchase land now, there is an immediate need for a temporary ARB while the more permanent one gets established. We are asking that the Commission appoint Jeff Gibney, Gary Gilot and Geri Hathaway as COMMISSION APPROVEDTiIE EXTENSION ADDENDUM TO CONSULTING AGREEMENT BY AND BETWEEN THE CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT AND BLUE WATERS GROUP, ENDING THE TERM OF THE CONTRACT ON MAY 31, 201 1 10 South Bend Redevelopment Commission Regular Meeting -January 21, 201 1 the Interim ARB. Additional members to the Interim review board will be a Council appointment and one other appointment at a later time. Our intent is to have Baker & Daniels do the legal work to set up the ARB, since Baker & Daniels helped create the Ignition Park PUD and they understand first hand the PUD requirements. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2839 appointing an Interim Architectural Review Board for Ignition Park consisting of Jeff Gibney, Gary Gilot and Geri Hathaway plus two yet to be named members. Mr. Inks noted that it is not staff's intent to move forward with only these three members on the board. He has asked Council attorney Kathy Cekanski-Farrand how to move forward to secure the Council appointment, but has not heard back from her. Staff is also putting together a suggested list of people who might serve in that capacity if the Council wishes to select from that list. (3) Proposal for professional services to establish Ignition Park Architectural Review Board. Mr. Relos noted that Baker & Daniels has submitted a proposal to develop policies, procedures, and guidelines for the operation of the ARB. In addition, Baker & Daniels will draft, in conjunction with the Economic Development Department, the Declaration of Covenants and Restrictions for Ignition Park. This document will be recorded, and ARB approval will be required before building COMMISSION APPROVED RESOLUTION NO. 2839 APPOINTING AN INTERIM ARCHITECTURAL REVIEW BOARD FOR IGNITION PARK CONSISTING OF ,IEEE GIBNEY, GARY GILOT AND GERI HA"i'HAWAY PLUS TWO YET TO BE NAMED MEMBERS South Bend Redevelopment Commission Regular Meeting -January 21, 2011 permits can be issued or plan approvals can be granted by the Area Plan Commission. The ARB will also govern the long term needs of the Park as it grows. Staff requests approval of this Professional Services Agreement, in an amount not to exceed $15,000. Mr. Varner said that he does not want projects to get bogged down in an additional layer of bureaucracy. He would like the ARB to be required to act within a specified period of time and he would like the Commission to be notified that staff is working with a potential business so that it can intervene. Mr. Relos responded that the PUD was created with some flexibility for that purpose. Mr. Gibney noted that staff is very customer service oriented. We do not want to lose potential clients over unrealistic architectural standards. Ms. Jones asked whether the covenants will be deed covenants. Mr. Relos responded that they will. "That worried Ms. Jones because deed covenants tend to be very difficult to change unless all the land owners agree. That has been a stumbling block to development in the Blackthorn Corporate Park. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission accepted the proposal from Baker & Daniels to establish an Ignition Park Architectural Review Board for the scope of services and fee proposed. D. West Washington-Chapin Development Area COMMISSION ACCEPTED THE PROPOSAL FROM BAKER & DANIELS TO ESTABLISH AN IGNITION PARK ARCHITECTURAL REVIEW BOARD FOR THE SCOPE OF SERVICES AND FEE PROPOSED 12 South-Bend Redevelopment Commission Regular Meeting -January 21, 2011 (1) Resolution No. 2837 amending the West Washington-Chapin Development Area Development Plan. (601-605 W. Washington St. and 109-111 N. Taylor St. to the List of Properties to be Acquired) Mr. Relos noted that on January 14, 2011, the Commission authorized staff to conduct surveys, investigations, and to thoroughly study the West Washington Chapin Development Area (WWCDA). This process included the gathering of information on parcels to be added, and an estimation of costs associated with the acquisition and redevelopment of properties within this development area. Resolution No. 2837 is a Declaratory Resolution to amend the Development Plan for the W WCDA, beginning the process to amend the Development Plan to acquire two properties at the northwest corner of Washington and Taylor Streets, 601 - 605 W. Washington and 109 - 111 N. Taylor. Both these properties have one story commercial buildings on them. Both buildings are out of character with the surrounding historic homes, and both are vacant and in a state of disrepair. Acquisition and demolition of these two buildings will allow staff to offer these parcels for market rate, in-fill housing. Expected cost for the acquisition and demolition of these two properties is $150,000. Upon approval by the Commission, resolutions will be put before the Area Plan Commission and Common Council for their approval, before a Public Hearing and Confirming Resolution would be presented to 13 South Bend Redevelopment Commission Regular Meeting -January 21, 2011 the Commission for final approval. Staff also requests authorization to advertise for a Public after approval from the Common Council. Staff believes it would be of public utility and benefit to amend the Development Plan to adding these properties to the acquisition list and allowing their acquisition. Staff requests Commission approval of Resolution No. 2837, and the necessary advertising to carry it forward. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2837 amending the West Washington-Chapin Development Area Development Plan to add 601-605 W. Washington St. and 109-111 N. Taylor St. to the List of Properties to be Acquired. Commission also authorized staff to publish the Notice of Hearing following Council approval of its resolution. E. South Side Development Area (1) Resolution No. 2838 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Main- Lafayette Connector Design Project - Supplement #1. Mr. Inks asked that item 6.E.(1) be tabled. There was no objection and the item was tabled. (2) Project Assignment for General Consulting (Erskine Commons -Crowe Horwath) Mr. Inks noted that this Assignment with COMMISSION APPROVED RESOLUTION NO. 2837 AMENDING THE WEST WASHINGTON-CHAPIN DEVELOPMENT AREA DEVELOPMENT PLAN TO ADD 601-605 W. WASHINGTON ST. AND 109-1 1 1 N. TAYLOR ST. TO THE LIST OF PROPERTIES TO BE ACQUIRED. COMMISSION ALSO AU"fFiORl7_ED STAFF TO PUBLISFI THE NOTICE OF HEARING FOLLOWING COUNCIL APPROVAL OF ITS RESOLUTION ITEM 6.E.(1) WAS TABLED 14 South Bend Redevelopment Commission Regular Meeting -January 21, 2011 Crowe Horwath is for services related to paying off the Erskine Commons bond. Services would be provided on an hourly rate or for out of pocket costs. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved the Project Assignment for General Consulting (Erskine Commons -Crowe Horwath) 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. H. Ratification of Services Contracts COMMISSION APPROVED THE PROJECT ASSIGNMENT FOR GENERAL CONSULTING (ERSKINE COMMONS - CROWS HORWA'rH) Commission Role in Contract Staff Transaction Contractor Service Provided Amount Member 1506 S. Kemble Acquisition Witt Appraisal Appraisal $350 Relos Services 1506 S. Kemble Acquisition Michaels Appraisal Appraisal $350 Relos Services 1512 S. Kemble Acquisition Meridian Title Corp Title Work $100 Relos 1506 S. Kemble Acquisition Meridian Title Corp Title Work $100 Relos 109-111 N. Taylor Acquisition Meridian Title Corp Title Work $100 Relos 601-605 W. Acquisition Meridian Title Corp Title Work $100 Relos Washington 15 South Bend Redevelopment Commission Regular Meeting -January 21, 2011 Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission ratified the Services Contracts approved by staff since January 14, 2011. I. Other (1) Resolution No. 2836 setting procedures for filing and consideration of matters before the South Bend Redevelopment Commission. Mr. Meteiver noted that the Commission previously had a resolution that governed when packets would be provided to Commissioners and what kinds of documents can be provided after that and when. In light of the Commission's new schedule with meetings on Tuesdays, Resolution No. 2836 stipulates that packets will be delivered the Friday afternoons before the Tuesday meetings. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2836 setting procedures for filing and consideration of matters before the South Bend Redevelopment Commission. 7. PROGRF,SS REPORTS COMMISSION RATIFIED T}IE SERVICES CONTRACTS APPROVED BY STAFF SINCE .IANUARY 14, 201 1 COMMISSION APPROVED RESOLUTION NO.2836 SETTING PROCEDURES FOR FILING AND CONSIDERATION OF MATTERS BEFORE THE SOUTH BEND REDEVELOPMENT COMMISSION 16 South Bend Redevelopment Commission Regular Meeting -January 21, 2011 Mr. Inks reported that staff continues to make the Bosch PROGRESS REPORTS and the A J Wright facilities available for interested parties to tour. Two businesses have gone through the AJ Wright facility. The owner of AJ Wright is interested in hiring a local realtor to market the building. The Bosch facility belongs to the city. We have shown the building to a couple of interested parties. We are also having realtors help us identify issues with it and market it. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Friday, February 8, 201 1 at 4:00 p.m. 9. ADJOURNMENT There being no further business to come before the AD.IOURNMENT Redevelopment Commission, the meeting was adjourned at 11:00 a.m. Donald E. Inks, Director 17