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HomeMy WebLinkAbout2. Minutes of 2-8-11 MeetingSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING February 8, 2011 4:00 p.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. Don Inks, Director Mrs. Jenny Hullinger, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. Robert Mathia, 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 Ms. Rita Kopala Ms. Linda Wolfson, Community Forum for Economic Dev Mr. Mark Seaman, Prism Science Mr. Carl Kay Ms. Michelene Kay Mr. Bipin Doshi Mr. Stan Blenke Mr. Merlin Bellinger Ms. Jackie Stevenson Ms. Mary Jo Ogren Mr. Dennis Andres, Morris Performing Arts Center Mr. Tim Firestone, Blackthorn Golf Club Mr. John Quickstad, Blackthorn Golf Club Ms. Geri Hathaway Mr. Jason Durr Ms. Elizabeth Leonard-Inks, CED Mr. David Bolinger Mr. Paul Phair South Bend Redevelopment Commission Regular Meeting -February 8, 2011 3. ROLL CALL (CONT.) 2. APPROVAL OF MINUTES Ms. Monette Tepe Mr. Don Jeciorski A. Approval of Minutes of the Regular Meeting of Friday, January 21, 2011. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, January 21, 2011. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, JANUARY 21, 2011 Redevelopment Commission Claims submitted February 8, 2011 for approval. 305 FUND SBCDA BOND Abonmarche 3,066.00 Jefferson Blvd & Niles Ave Streetscape 324 AIRPORT AEDA Plews Shadley Racher & Braun LLP 47.50 Enviromnental DLZ 3,552.50 Studebaker Demo Ph IV Asbestos Inspections @ Vacant Commercial & Envirocorp Inc. 1,900.00 Residential Bldg David Waszak Appraisals, Inc 3,200.00 Ignition Park LaSalle Hotel Management Fee & General CB Richard Ellis 2,170.00 Maintenance Indiana Michigan Power 197.81 1313 Prairie Ave Indiana Michigan Power 7.00 501 Wenger St. South Bend Tribune 103.82 Abonmarche 1,190.00 Brick road Abonmarche 30,260.00 Mayflower Rd Sanitary Sewer DLZ 5,655.00 So. Bend US/Adam Christopher B. Burke 3,364.50 Christopher B. Burke Plews Shadley Racher & Braun LLP 1,562.72 Environmental Cost Recovery Wightman Petrie 900.00 Ignition Park Environmental Assessment & Demo ARC 55.35 Demo of Millenium Tim & Martha Darr 5,040.00 Rental Assistance Payment For Relocation NIPSCO 234.65 1313 Prairie Ave 2 South Bend Redevelopment Commission Regular Meeting -February 8, 2011 South Bend Municipal Utility DHA 106.66 1313 Prairie Ave Variance Petition for Proposed for in Ignition Park 3,335.00 on Franklin St. 420 FUND TIF DISTRICT-SBCDA GENERAL Downtown South Bend, Inc Ampco System Parking Schindler Elevator Corporation Indiana Michigan Power Morris & Sons Roofing, Inc. Tri-M Construction, Inc. Indiana Michigan Power South Bend Municipal Utility Bill CB Richard Ellis NIPSC Rose Pest Solutions Gateway Environmental Service 17,272.18 Downtown Improvements 1,825.70 St Joseph St Surface / 225 Main St 157.17 Inspection Service for Elevator @ LaSalle Building 255.09 237 N Michigan St 2170 LaSalle Hotel 8142.25 Properties Snow Removal 195.89 329 S Lafayette Blvd 72.28 325 S Lafayette Blvd 676.23 LaSalle Hotel 946.28 329 S Lafayette Blvd 96.00 LaSalle Hotel 53,500.00 Demo of 118 S Williams St. 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT Carl Walker 6,226.60 Memorial Hospital Bartlett St. Garage Walsh & Kelly, Inc. 58,052.31 Memorial Hospital Streetscape Improvements 431 FUND SOUTH SIDE DEVELOPMENT TIF AREA #2 Baker & Daniels 1,270.00 Professional Service Render S ~ 16.806.49 Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Claims submitted February 8, 2011, and ordered checks to be released. 4. COMMUNICATIONS A. Communication from Housing Authority of South Bend. COMMISSION APPROVED THE CLAIMS SUBMITTED FEBRUARY 8, 2011, AND ORDERED THE CHECKS TO BE RELEASED 3 South Bend Redevelopment Commission Regular Meeting -February 8, 2011 4. COMMUNICATIONS (CONT.) January 26, 2011 Marcia Jones, President South BerTd Redevelopment Commission 227 West Jefferson Bh~d. Suite 1200 S South Bend, IN 46601 Subject: Appreciation, for Temporary Use Agreement Dear Ms. Jones, As we conclude the Exterior Improvements to our properties at 425 mid S01 Alonzo Watson Drive, we wanted to take the opportunity to thank you and the Conrrr~ission for the Temporary Use Agreement for the use of the Shillings Camera Building located at 325-329 Lafayette, South Bend, 46601. The Use Agreement helped reduce the transit between the work site and wm~ehouse for our contractor and thus helped ensure a successful completion of our projects. As; you may have noticed, we have been able to completely update the look of both our High Rise Buildings and hope you agree 1ti~ith us that this also odds to the betterment of the area in general. Sincere appreciation is also expressed for the professional und_fi~iendly work of Bill Schalliol and Debrall Jennings who both made our contractors feel comfortable ut all times. We are pleased to have been able to tivor-k with the Commission to help make South Bend a more attractive place. Thank you. Sincerely, Marva J. Leonard-Dent Executive Director 4 South Bend Redevelopment Commission Regular Meeting -February 8, 2011 5. OLD BUSINESS A. 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) Ms. Jones noted that Item S.A.(1) cannot be approved until a later item on the agenda is first approved. She asked that SA(1) be moved to follow 6.H.(1). There was no objection and the item was so moved. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission continued Item S.A.(1) to follow item 6.H.(1) 6. NEW BUSINESS A. Receipt of Bids (1) Receipt of Bids for disposition of Ignition Park. Mr. Inks noted that bids were due by 3:00 p.m. this afternoon. There were no bids received by that time. B. Public Hearings (1) Public Hearing on Tax Increment Financing Resolutions No. 2819 (AEDA), No. 2820, (SBCDA), No. 2821 (WWCDA), No. 2822 (Downtown Medical), No. 2823 (NNDA), No. 2824 (SSDA #1), No. 2825 (SSDA #2), No. 2826 (SSDA #3), No. 2827 (DREDA), and No. 2828 (NNDA #2). ITEM S.A.(I) CONTINUEDTO FOLLOW ITEM 6.H.(1) NO BIDS WERE RECEIVED South Bend Redevelopment Commission Regular Meeting -February 8, 2011 Mr. Inks noted that this public hearing is for all of the TIF funds, including the Airport Economic Development Area, the South Bend Central Development Area, the West Washington-Chapin Development Area, the Downtown Medical Area, the Northeast Neighborhood Development Area, and the South Side Development Area No. 1, South Side Development Area No. 2 (Erskine Commons), South Side Development Area No. 3 (Erskine Village), Douglas Road Economic Development Area, and the Northeast Neighborhood Residential Area. Mr. Inks noted that historically we have optimistically allocated all of the funds expected to be received in an allocation area in a given year. Then, unable to manage all of the projects we thought we could, we have had funds left over at the end of the year. The City Controller has asked that we appropriate a realistic amount. So, of the $72M in TIF available from all TIF Areas, we are only appropriating about $35M. If the work progresses well and we feel we can complete additional work, we may appropriate additional funds later in the year. But we feel that with existing staff, the $35M is a realistic amount to expect to spend. Ms. Leonard noted that the Commissioners received this morning a revised Resolution No. 2825, increasing the appropriation by $5,000. The entire appropriation for that TIF area is all going to debt service. Ms. Leonard noted that the amount to be appropriated for the Airport Economic Development Area is $13,745,000; in the South Bend Central Development Area the amount appropriated is $6,320,000; in the 6 South Bend Redevelopment Commission Regular Meeting -February 8, 201 1 West Washington-Chapin Development Area the amount appropriated is $1,056,000; in the Central Medical District the amount appropriated is $1,960,000; in the Northeast Neighborhood Development Area the amount appropriated is $400,000; in the South Side Development Area #1 the amount appropriated is $3,496,000; in the South Side Development Area #2 the amount appropriated is $3,420,000; in the South Side Development Area #3 the amount appropriated is $500,000; in the Douglas Road Economic Development Area the amount appropriated is $492,000; and in the Northeast Neighborhood Residential TIF area the amount appropriated is $2,400,000. Mr. Varner asked how much of the $35M is for debt service. Ms. Leonard responded that the debt service accounts for $13 M-$14M of the $35M. Mr. Varner asked whether the $72M in anticipated revenue includes 2011 revenue. Mr. Inks responded that in the past we did not appropriate revenue anticipated to be received in the December 31 current year distribution. It is pretty hard to spend money you receive on the last day of the year. However, the city budgets on that basis. The Controller has asked us to conform to that budget cycle. Ms. Jones opened the public hearing on the appropriations for all of the TIF districts for anyone who wished to speak. Mr. David Bollinger: I object to the whole proposal of the South Side Main/Lafayette connector and roundabout. If you look at the map it is going to create a bottleneck at South Michigan, Ireland Road and Main Street, PUBLIC HEARING ON RESOLUTIONS NO.2819 (AEDA), No. 2820, (SBCDA), No. 2821 (WWCDA), NO. 2822 (DOWNTOWN MEDICAL, No. 2823 (NNDA), No. 2824 (SSDA #1), No. 2825 (SSDA #2), No. 2826 (SSDA #3), No. 2827 (DREDA), AND N0.2828 (NNDA #2) 7 South Bend Redevelopment Commission Regular Meeting -February 8, 201 1 because of the way the traffic is routed. The east-west connector only goes to the theater, to Barbie Street and dead-ends at St. Joseph or Fellows. So, it down"t make any sense to spend that kind of money and not have an east/west connector that"s not going anywhere but to a theater, and two secondary roads. If the east/west connector went to another main route, that would be different. Also, the fact that they are going to put in a traffic light between Carl Kay Memorials and C & B Optical. That's going to be another traffic bottleneck because every time that light changes to let the theater traffic through there, everything on South Michigan Street will come to a stop. You are going to have traffic backed up all the way to Johnson Road and Gilmer Park because during rush hour you've got bypass traffic coming in, you've got traffic coming in from U.S. 31 South, you"ve got traffic coming in from Ireland Road going north. Another reason I'm against it is that if you close that end of South Main after you put the roundabout in, how are the businesses along there going to get service from their delivery trucks? There's no way they can get in and out of there. I don't know if anyone has considered an alternative or not---the engineers or whoever is in charge ofthis---but if you go down Franklin Street and go across Ewing where it turns into Green Tech Drive, you've got the old defunct Sibley Foundry. There's a roadbed that goes behind there that goes all the way down to Chippewa. If you wanted to continue Lafayette down, that would be the best thing to do is run it all the way down from there to Chippewa, putting a roundabout at Chippewa or Ireland Road. Where that road behind the foundry comes out on Chippewa, you've got easements there anyway, you've got the power lines and 8 South Bend Redevelopment Commission Regular Meeting -February 8, 2011 you've got the unused railroad. Across from there you've got Diversified Transport's property which is defunct. That goes all the way from Chippewa to Ireland Road. It wouldn't be too hard for the city to acquire those properties and get rid of that foundry and run the road right down through there. It would probably save a lot of money, and it would save headaches from traffic bottlenecks. That's all I have to present on the subject. Ms. Jones thanked Mr. Bollinger for his comments and directed staff to respond to them at a later time, noting that the Commission's actions here simply appropriate the money for the budget. There being no one else who wished to speak regarding the TIF appropriation resolutions, Ms. Jones closed the public hearing for whatever action the Commission wished to take. (2) Consideration of Resolution No. 2819. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2819 appropriating Tax Increment Financing revenues from Allocation Area No. 1 Fund for the payment of certain obligations and expenses related to the Airport Economic Development Area Allocation Area No. 1. (3) Consideration of Resolution No. 2820. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2828, an additional appropriation resolution of the Redevelopment Commission (South Bend COMMISSION APPROVED RESOLUTION NO. 2819 APPROPRIATING TAX INCREMENT FINANCING REVENUES FROM ALLOCATION AREA NO. I FUND FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THE AIRPORT ECONOMIC DEVELOPMENT AREA ALLOCATION AREA NO. I COMMISSION APPROVED RESOLUTION NO. 2828, AN ADDITIONAL APPROPRIATION RESOLUTION OF THE REDEVELOPMENT COMMISSION (SOUTH BEND CENTRAL DEVELOPMENT AREA NO. 1 FUND) 9 South Bend Redevelopment Commission Regular Meeting -February 8, 201 1 Central Development Area No. 1 Fund) (4) Consideration of Resolution No. 2821. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2821 appropriating Tax Increment Financing revenues from the Allocation Area Fund for the Payment of Certain Obligations and expenses related to the West Washington- Chapin Development Area Allocation Area (5) Consideration of Resolution No. 2822. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2822 an additional appropriation resolution of the Redevelopment Commission (Downtown Medical Services District Special Fund) (6) Consideration of Resolution No. 2823. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2823 appropriating tax increment financing revenues from Allocation Area Fund for the payment of certain obligations and expenses related to the Northeast Neighborhood Development Area Allocation Area (7) Consideration of Resolution No. 2824. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2824 appropriating tax increment financing revenues from Allocation Area No. l Fund for the payment of certain obligations and expenses related to the South Side COMMISSION APPROVED RESOLUTION NO. 2821 APPROPRIATING TAX INCREMENT FINANCING REVENUES FROM THE ALLOCATION AREA FUND FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THE WEST WASHINGTON-CHAPIN DEVELOPMENT AREA ALLOCATION AREA COMMISSION APPROVED RESOLUTION NO. 2822 AN ADDITIONAL APPROPRIATION RESOLUTION OF THE REDEVELOPMENT COMMISSION (DOWNTOWN MEDICAL SERVICES DISTRICT SPECIAL FUND COMMISSION APPROVED RESOLUTION NO. 2823 APPROPRIATING TAX INCREMENT FINANCING REVENUES FROM ALLOCATION AREA FUND FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA ALLOCATION AREA COMMISSION APPROVED RESOLUTION NO. 2824 APPROPRIATING TAX INCREMENT FINANCING REVENUES FROM ALLOCATION AREA NO. I FUND FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THE SOUTH SIDE DEVELOPMENT AREA ALLOCATION AREA NO. I 10 South Bend Redevelopment Commission Regular Meeting -February 8, 2011 Development Area Allocation Area No. 1 (8) Consideration of Resolution No. 2825. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2825 appropriating tax increment financing revenues from Allocation Area No. 2 Fund for the payment of certain obligations and expenses related to the South Side Development Area Allocation Area No. 2 (9) Consideration of Resolution No. 2826. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2826 appropriating tax increment financing revenues from Allocation Area No. 3 Fund for the payment of certain obligations and expenses related to the South Side Development Area Allocation Area No. 3 (10) Consideration of Resolution No. 2827. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2827 appropriating tax increment financing revenues from Allocation Area No. 1 Fund for the payment of certain obligations and expenses related to the Douglas Road Economic Development Area Allocation Area No. 1 (11) Consideration of Resolution No. 2828. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2828 appropriating tax increment financing COMMISSION APPROVED RESOLUTION NO. 2825 APPROPRIATING TAX INCREMENT FINANCING REVENUES FROM ALLOCATION AREA NO.2 FUND FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THE SOUTH SIDE DEVELOPMENT AREA ALLOCATION AREA NO.2 COMMISSION APPROVED RESOLUTION NO. 2826 APPROPRIATING TAX INCREMENT FINANCING REVENUES FROM ALLOCATION AREA NO.3 FUND FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THE SOUTH SIDE DEVELOPMENT AREA ALLOCATION AREA No. 3 COMMISSION APPROVED RESOLUTION NO. 2827 APPROPRIATING TAX INCREMENT FINANCING REVENUES FROM ALLOCATION AREA NO. I FUND FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THE DOUGLAS ROAD ECONOMIC DEVELOPMENT AREA ALLOCATION AREA NO. 1 COMMISSION APPROVED RESOLUTION NO. 2828 APPROPRIATING TAX INCREMENT FINANCING REVENUES FROM ALLOCATION AREA FUND FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THE NORTHEAST 11 South Bend Redevelopment Commission Regular Meeting -February 8, 201 1 revenues from allocation area fund for the payment of certain obligations and expenses related to the Northeast Neighborhood Development Area Allocation Area #2 Ms. Jones opened the public hearing for whoever wished to speak regarding Resolution No. 2829. There was no one who wished to speak. Ms. Jones closed the public hearing for whatever action the Commission wished to take. (13) Consideration of Resolution No. 2829. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved 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 a time when the same shall take effect. (Redevelopment Retail Operations) (14) Public Hearing on Resolution No. 2830 determining to appropriate 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 (Blackthorn Golf Course Operations) Ms. Leonard noted that Kitson and Partners manages the Blackthorn Golf Course for the Commission. They supplied the budget for the course for 2011. The Blackthorn Joint Committee met to consider this budget. NEIGHBORHOOD DEVELOPMENT AREA ALLOCATION AREA #2 PUBLIC HEARING ON RESOLUTION NO. 2829 COMMISSION APPROVED 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 A TIME WHEN THE SAME SHALL TAKE EFFECT. (REDEVELOPMENT RETAIL OPERATIONS 12 South Bend Redevelopment Commission Regular Meeting -February 8, 201 1 Though there was not a quorum present, those present were in favor of the budget as submitted by Kitson. Ms. Jones opened the public hearing on Resolution No. 2830 for whoever wished to speak regarding Resolution No. 2830. There was no one who wished to speak. Ms. Jones closed the public hearing for whatever action the Commission wished to take. (15) Consideration of Resolution No. 2830. Ms. Jones asked what the "late fees"' are in the budget. Ms. Leonard responded that in 2010 when the Commission was entering into an agreement for golf carts, the language in the lease said there would be late fees charged. That is customary language in a lease. According to state law, the Commission cannot have that language in a lease unless there is a separate appropriation for late fees. We have, therefore, added it to the budget, but will not plan to use it. It simply satisfies the legal requirement. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2830 determining to appropriate 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 (Blackthorn Golf Course Operations) C. Tax Abatements (1) Resolution No. 2841 approving an application for personal property tax PUBLIC HEARING ON RESOLUTION NO. 2830 COMMISSION APPROVED RESOLUTION NO. 2830 DETERMINING TO APPROPRIATE 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 (BLACKTHORN GOLF COURSE OPERATIONS 13 South Bend Redevelopment Commission Regular Meeting -February 8, 2011 deduction for property located at 3849 Showerlux Drive in the Airport Economic Development Area. (South Bend Gear, LLC) Mr. Mathia noted that South Bend Gear, LLC is a start up company that will produce engine gears for the heavy duty truck market in North America. The project will acquire several pieces of turning, gear cutting and gear finishing equipment as well as robots and automation equipment. Under a separate project a building is being constructed to house the new company. The personal property project will be implemented in two phases over a two year period beginning with installation of an initial group of machines during July 2011 with final installation of machinery by February 2013. The estimated cost of the two phase project is $15,600,000. Total taxes to be abated during the (5) five-year abatement period are estimated at $678,507. Total taxes to be paid during the (5) five-year abatement period are estimated at $617,395. The project is expected to create at least twelve new, permanent, full-time jobs in the first year of production representing a new annual payroll of at least $550,000. The petitioner has estimated that there will be a total of 26 full time jobs by the end of phase two. Because the company is new there are no existing jobs. The petitioner has not received any previous tax abatements. The property is properly zoned for the proposed project. The property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore, the 14 South Bend Redevelopment Commission Regular Meeting -February 8, 201 1 petition for personal property tax deduction must first be approved by the South Bend Redevelopment Commission. The project qualifies for five years of personal property tax deduction under the tax abatement ordinance. Mr. Blenke, manager of South Bend Gear, noted that the start-up company is a joint venture between Schafer Gear Works and Somaskini, its Italian partner. They are a long time family-owned gear business that has produced gears for this market for many years. Schafer Gear is excited to be part of this start-up venture. It is state-of--the-art equipment found nowhere else in this country at this time. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2841 approving an application for personal property tax deduction for property located at 3849 Showerlux Drive in the Airport Economic Development Area. (South Bend Gear, LLC) (2) Resolution No. 2842 approving an application for real property tax deduction for property located at 815 Oliver Plow Court in the Airport Economic Development Area. (South Bend Redevelopment Commission on behalf of Oliver Plow Partners LP) Mr. Mathia noted that Oliver Plow Partners is in the process of purchasing 4.4 acres in the Oliver Plow Industrial Park from the South Bend Redevelopment Commission. Oliver Plow Partners intends to construct a warehouse/distribution facility to accommodate a tenant, ABC Supply COMMISSION APPROVED RESOLUTION NO. 2841 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3849 SHOWERLUX DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (SOUTH BEND GEAR, LLC) 15 South Bend Redevelopment Commission Regular Meeting -February 8, 2011 Company Incorporated. The new building will have a total of approximately 40,800 square feet. It will be apre-engineered steel facility with a masonry wainscot or facade. The building will be of high quality and will match the character of the surrounding industrial uses in close proximity to the property. The estimated cost of the building is $1,750,000. ABC Supply Company is a distributor of exterior housing products. They are a primary supplier to the construction industry similar to other uses found within Oliver Plow Industrial Park. Oliver Plow Partners has just begun collecting information on potential suppliers and contractors for the project. For this reason they were unable to answer the questions related to suppliers of construction materials and construction contractors. They intend to submit this infornation prior to the Common Council meeting to consider its confirming resolution. At that time final points will be awarded and the length of the abatement term set. Based on current information, Oliver Plow Partners will score sufficient points for a four year term. If they score all of the points for construction they would have enough points for aseven- year abatement. For purposes of consideration of the Declaratory Resolution we are estimating the terns at eight years to allow for the maximum amount. Anything less will result in a reduction in the amount of taxes abated. Assuming an eight year abatement term is approved at the Confirming Resolution, the total taxes to be abated during that tern are estimated at $ 192,799. Total taxes to be l6 South Bend Redevelopment Commission Regular Meeting -February 8, 201 1 paid during the eight year term are estimated at $224,308. If the term remained at four years, total taxes to be abated would be approximately $ l 09,044. Total taxes to be paid over the four year term would be approximately $99,509. It is estimated that the project will create two new, permanent full-time positions with total wages estimated at $65,000. It will retain ten existing permanent full-time positions and one existing part time position, including two existing permanent full-time minority employees, with a total annual payroll of $419,958. Neither the petitioner, Oliver Plow Partners, nor the proposed tenant, ABC Supply Company, have been granted previous tax abatements. However, Holliday Properties, a major partner in Oliver Plow Partners has received previous tax abatements through various limited partnerships and limited liability corporations. The property is properly zoned for the proposed project. The property is located in the Airport Economic Area, which is a Tax Incremental Allocation Area; therefore, the petition for real property tax deduction must first be approved by the South Bend Redevelopment Commission. The project may qualify for up to eight years of tax deduction under the tax abatement ordinance. Mr. Inks noted that the Common Council requires atwo-to-three week lead time on filing for tax abatements. In order to keep the project on track to meet that deadline, Mr. Inks signed the petition on behalf of the current owner, the Redevelopment Commission. 17 South Bend Redevelopment Commmission Regular Meeting -February 8, 20l 1 Mr. Gibney noted that staff believes this new building along Chapin Street, next to the KROC Center, will be a great addition to the industrial park as well as the corridor leading to Ignition Park. Mr. Downes asked how much more property the Commission still owns in Oliver Industrial Park. Mr. Gibney responded that we have enough for about three more buildings. Mr. Alford asked what will become of the building ABC is vacating on Western Avenue. Mr. Jeciorski responded that they lease their current building. The lease is coming up for renewal and they want to refresh their look. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission ratified Mr. Inks' signing the tax abatement petition on behalf of the Commission. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2842 approving an application for real property tax deduction for property located at 81$ Oliver Plow Court in the Airport Economic Development Area. (South Bend Redevelopment Commission on behalf of Oliver Plow Partners LP) (3) Staff report on McCormick and Company personal property abatement petition. Mr. Inks noted that Commissioners received this morning Resolution No. 284$ which increases the personal property tax deduction for McCormick and Company. The project COMMISSION RATIFIED MR. INKS' SIGNING THE TAX ABATEMENT PETITION ON BEHALF OF THE COMMISSION COMMISSION APPROVED RESOLUTION NO. 2842 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT S 1$ OLIVER PLOW COURT IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (SOUTH BEND REDEVELOPMENT COMMISSION ON BEHALF OF OLIVER PLOW PARTNERS LP~ 18 South Bend Redevelopment Commission Regular Meeting -February 8, 201 1 is expanding at a greater rate than was originally thought. McCormick and Company is requesting an increase in the amount of the company's five year personal property tax abatement approved by the Redevelopment Commission on July 9, 2010 and by the South Bend Common Council on January 24, 2011. The original amount approved was $1,362,173. McCormick is planning to move an existing brand of products from a co-packer to a company owned facility at a cost of $6,744,426. They are considering their South Bend facility for that move. As a result, they are asking that the amount of their personal property abatement be increased by $6,744,426 to a new total of $8,136,599. With this increase the total taxes to be abated will increase from $10,073 to $125,205 and the total amount of taxes to be paid will increase from $103,084 to $550,707. It should also be noted that the company had planned to increase employment by five positions under its current abatement. However, it has already increased total employment by 10 positions and total wages have gone from $6,288,988 to $6,718,833 for an increase of $429,845. With the proposed move the company would add an additional 14 positions and increase wages by another $483,101. The Redevelopment Commission is requested to approve Resolution No. 2845 increasing the personal property abatement from $6,774,426 to $8,136,599. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the COMMISSION APPROVED RESOLUTION NO. '?845 APPROVING AN APPLICATION FOR AN INCREASE IN PERSONAL PROPERTY TAX DEDUCTION 19 South Bend Redevelopment Commission Regular Meeting -February 8, 2011 Commission approved Resolution No. 2845 approving an application for an increase in personal property tax deduction (McCormick & Company. D. Housing (1) Forgiveness of partial balance on South Bend Home Improvement Loan for property located at 316 S. Scholum St. (Mary Ann Roberts) Ms. Jennings noted that in 2004 the Redevelopment Commission approved a South Bend Home Improvement Loan for Ms. Roberts at 316 S. Scholum. Under the teens of the loan, the loan becomes due in full if the property is sold. Ms. Roberts is an elderly woman residing in a nursing home. Real Services has become her legal guardian. Since Ms. Roberts no longer resides in the home, Real Services is trying to sell it. The property only appraised at $2,000, but is selling for $6,500. The South Bend Home Improvement Loan balance is $5,169. After payoff of the SBHIP loan and all other closing costs, Ms. Roberts will owe $1,624.50 to the buyer. Ms. Roberts is very low income and unable to pay the $1,624.50. Real Services is requesting we reduce the loan balance by that amount. The remaining balance of $3,544.50 will be paid to the city after sale of the property. Staff requests approval. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission forgave $1,624.50 of the South Bend Home Improvement Loan balance for 316 S. Scholum St. (Mary Ann Roberts) E. South Bend Central Development Area (MCCORMICK & COMPANY COMMISSION FORGAVE $1,624.50 OF THE SOUTH BEND HOME IMPROVEMENT LOAN BALANCE FOR 316 S. SCHOLUM ST. (MARY ANN ROBERTS) 20 South Bend Redevelopment Commission Regular Meeting -February 8, 2011 (1) Landlord's Estoppel Certificate (Certificate of Ground Lease terms and tenant's conduct at 100 N. Michigan St.) Mr. Inks noted that the owner of the 1 S` Source Center is seeking financing. As a requirement of that financing the Commission has been asked to sign this document. It does not impinge at all on any of the Commission's rights related to the property. Mr. Meteiver further explained that an Estoppel is a certificate by the Commission that the circumstances that are listed throughout the Commission's Ground Lease are true and correct and we are estopped from denying that any of these circumstances or facts are true if and when the bank has cause to foreclose. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved the Landlord's Estoppel Certificate (Certificate of Ground Lease terms and tenant's conduct at 100 N. Michigan St.) F. Airport Economic Development Area (1) Resolution No. 2840 related to acquisition of property in the Airport Economic Development Area. (Tax sale properties 709 W. Indiana and 1527 S. Kemble) Mr. Relos noted that on May 21, 2010, the Commission approved Confirming Resolution No. 2668, which added various properties to the acquisition list of the Airport Economic Development Area. Two of these properties are now up for sale at the COMMISSION APPROVED THE LANDLORD'S ESTOPPEL CERTIFICATE (CERTIFICATE OF GROUND LEASE TERMS AND TENANT'S CONDUCT AT 100 N. MICHIGAN ST.) 21 South Bend Redevelopment Commission Regular Meeting -February 8, 201 1 St. Joseph County Commissioner's February 24, 2011 tax sale. Staff believes purchasing these properties from the tax sale will allow for lower costs in the acquisition process. Both properties have been appraised. The combined average appraised value for both properties is $33,300. Since these properties are already on the acquisition list, staff requests approval of Resolution No. 2840, authorizing staff to take the necessary steps to register and bid on these parcels, in a not to exceed amount of $33,300. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2840 related to acquisition of property in the Airport Economic Development Area. (Tax sale properties 709 W. Indiana and 1527 S. Kemble) (2) Administrative Settlement for acquisition of 1502 S. Chapin St. Mr. Relos noted that the Uniform Relocation Act (Act) authorizes an administrative settlement in cases where an additional payment is necessary to acquire and gain clear title to a property. On September 17, 2010, the Commission approved Resolution No. 2764, authorizing the purchase of 1502 S. Chapin for its average appraised value of $21,500. Staff has been working with the property owner, within the acquisition and relocation sections of the Act, to reasonably reach an agreement to acquire this property. COMMISSION APPROVED RESOLUTION NO.2840 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (TAX SALE PROPERTIES 709 W. INDIANA AND 1527 S. KEMBLE) 22 South Bend Redevelopment Commission Regular Meeting -February 8, 201 l Approximately $6,800 additional is needed to pay off a bank mortgage and gain clear title to this property. The property contains a 1,152 square foot, two story, four bedroom single family residence. Staff feels the total approximate acquisition cost of $28,300, plus associated relocation and closing costs, is reasonable for this property, in light of its size, condition, and amenities, and requests approval of the administrative settlement to complete acquisition of this property. Ms. Jones asked how much relocation and closing costs were expected to be. Mr. Relos responded that, typically, relocation amounts to about $15,000, plus whatever it takes to get them into a comparable home. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Administrative Settlement in the amount of $6,800 plus associated relocation and closing costs for acquisition of 1502 S. Chapin St. (3) Proposal for Feasibility Study and Strategic Plan for aMulti-Cluster Technology Park. Ms. Hathaway noted that staff is requesting Commission approval of a proposal from Graham-Allen Partners to conduct a feasibility study for Ignition Park and to develop a strategic plan based on the findings of that study. The feasibility study will include a thorough analysis of industries that might support clustering and examine our ability to support the needs of those industries. A strategic plan will be developed based on the feasibility studies of COMMISSION APPROVED THE ADM W ISTRATIVE SETTLEMENT IN THE AMOUNT OF $6,800 PLUS ASSOCIATED RELOCATION AND CLOSING COSTS FOR ACQUISITION OF 1502 S. CHAPIN ST. 23 South Bend Redevelopment Commission Regular Meeting -February 8, 201 1 viable industry clusters and provide a path for the development of Ignition Park. Ms. Hathaway noted that there are known benefits to having a successful tech park: the ability to attract new businesses, the opportunity to spur growth for our existing businesses, local tax base increase, an increase in emplo}nnent and intern possibilities as well as opportunities to retain our most valuable recent college graduates. To increase these opportunities a proactive approach is absolutely necessary. We must fully investigate the needs of various business types; we must honestly assess our community's ability to meet those needs and, hopefully, exceed those; we must identify the unique assets of the community such as Public Works with its combined sewer overflow and the greenhouse energy sharing. Those are getting national recognition. We need to capitalize on that. And we need to develop an honest, targeted marketing plan. These allow us to be proactive in our efforts to build a park with multiple clusters of compatible, cooperative businesses. The industries that are talked about here are life sciences, advanced manufacturing, inforniation technology and data. The best we can hope for is that all of those might be viable industries for Ignition Park. And, it is phenomenally exciting that we have research initiatives on the campus of Notre Dame that address all those issues. And we have mentoring efforts in this community from Innovation Park to the Chamber, Project Future, Jump Start and Tech Connect. There is wonderful private and public effort to help move industry to along so that we can fill Ignition Park. 24 South Bend Redevelopment Commission Regular Meeting -February 8, 2011 However, one of our greatest potentials at Ignition Park is information technology and data storage. This has the potential of being "platforn changing.'" All industries use data and IT. Most industries are on a fast trajectory to increase their use of those tools. As such, Graham-Allen Partners is uniquely positioned to carry out the objectives of this study. They have an in-depth knowledge of the technology industry and extensive experience in developing strategic plans. This knowledge is closely aligned with a deep understanding of our local community and a commitment supported by personal investment. The firm also offers the experience of its managing partner, Tracy Graham, a serial entrepreneur, who has successfully planned, launched, and sold off some local businesses. Staff requests Commission approval of the Graham-Allen proposal in the amount of $265,890. Mr. Varner said he appreciated the stipulation that the strategic plan be completed in six months. Ignition Park needs to see some private investment soon. Mr. Downes agreed that it is critically important that we get an honest assessment for Ignition Park. Graham-Allen Partners is uniquely positioned to do that. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Coinlnission accepted the proposal from Graham-Allen Partners for a Feasibility Study and Strategic Plan for aMulti-Cluster Technology Park for the scope of services and fee proposed. G. West Washington-Chapin Development Area COMMISSION ACCEPTED THE PROPOSAL FROM GRAHAM-ALLEN PARTNERS FOR A FEASIBILITY STUDY AND STRATEGIC PLAN FOR AMULTI- CLUSTERTECHNOLOGY PARK FOR THE SCOPE OF SERVICES AND FEE PROPOSED 25 South Bend Redevelopment Commission Regular Meeting -February 8, 2011 There was no business in the West Washington- Chapin Development Area. H. South Side Development Area (1) Resolution No. 2843 approving and authorizing the execution of a Master Agency Agreement by and between the South Bend Redevelopment Commission and the City of South Bend Indiana, Board of Public Works relating to 2011 Projects. Mr. Inks noted that every year we do a number of public works projects. The Board of Public Works is set up to spec and bid those and oversee them. So we do a Master Agency Agreement to cover the projects and as the year progresses we add projects to the Master Agency Agreement. This document is the over-arching agreement. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2843 approving and authorizing the execution of a Master Agency Agreement by and between the South Bend Redevelopment Commission and the City of South Bend Indiana, Board of Public Works relating to 2011 Projects. 5. OLD BUSINESS (CONT.) A. 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) COMMISSION APPROVED RESOLUTION NO. 2843 APPROVING AND AUTHORIZING THE EXECUTION OF A MASTER AGENCY AGREEMENT BY AND BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE CITY OF SOUTH BEND INDIANA, BOARD OF PUBLIC WORKS RELATING TO 201 1 PROJECTS 26 South Bend Redevelopment Commission Regular Meeting -February 8, 201 1 Mr. Schalliol noted that in August 2010, the Redevelopment Commission and the Board of Public Works approved Resolution No. 2749 and the Addendum to the Master Agency Agreement for the construction and design elements of the project. The next step on this project, and the purpose of this amendment, is to begin the right-of--way acquisition process for the roadway project. The project affects a total of 33 parcels and will likely result in temporary, partial and total acquisitions. The number of acquisitions in each of those three types will depend on the final design. The next step in the process for this project is to complete construction drawings and right- of-way plans to assist in right-of--way acquisition and design. Staff requests approval of Resolution No. 2838 and the Amendment to the Addendum to the Master Agency Agreement for the Main-Lafayette Connector Design Project -Supplement #1. Mr. Schalliol noted that when the South Side Development Area was first begun, staff looked at how we needed to improve the infrastructure network to make traffic work better around the anticipated commercial development. We've made major improvements to Ireland Road for Erskine Commons and to Michigan Street from the bypass to Chippewa. The Main-Lafayette connector was envisioned to better move traffic north and south through the corridor. At Chippewa, southbound traffic on Main Street ends up at a T intersection, the only option being to turn right. Traffic that wants to go to Erskine Commons must, within a short distance, cross two lanes of traffic to get into a left turn lane. When the new U.S. 31 improvements are made, more traffic will 27 South Bend Redevelopment Commission Regular Meeting -February 8, 201 1 be coming into Erskine Commons. Mr. Schalliol also noted that currently the Showplace 16 movie theater can only be accessed from Chippewa. The traffic circle opens this area up, gives the theater more visibility and helps to include it in the commercial area. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved 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) 6. NEW BUSINESS (CONT.) H. South Side Development Area (2) Resolution No. 2844 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Ireland Road Improvements -Fellows to Miami - Supplement #1) Mr. Schalliol noted that Resolution No. 2844 and its addendum to the Master Agency Agreement amends the Ireland Road improvement project from Fellows to Miami. The original scope of the project was to design a new intersection with dedicated turn movements at Ireland and High and to design a pedestrian trail connection and related lighting and streetscape improvements on the north side of Ireland from Fellows to Miami. This amendment adds the following scope of services to the project: (1) additional survey, sidewalk and curb design on Miami Street north of Erskine Golf Course to Byron Dr.; COMMISSION APPROVED 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 28 South Bend Redevelopment Commission Regular Meeting -February 8, 2011 (2) right-of--way engineering services for four right-of--way purchases for the completion of various project components; (3) coordination of right of way dedication on the northeast corner of Fellows and Ireland; (4) sidewalk design for Bowen St. from Miami to Martin's entrance; (5) sidewalk design for section of walkway from J.R. Fox to Alpine Dr and coordination of improvements of walkway to Byron Dr.; and (6) signage variance, design and coordination services related to Martin's signage located within the Ireland and High intersection, Erskine Golf Course signage at Ireland and Miami intersection and other signage related to the project. Mr. Schalliol said he expected most of this work to be completed in 201 1. He asked for Commission approval. Mr. Varner asked if there was going to be any barrier put up around the detention ponds at the SW corner of Miami and Ireland so that children and stray cars to not get into them. Mr. Schalliol responded that aten-foot wide berni, two feet high with trees and brambles will buffer the ponds from accidents. Also, there will seldom be water in the ponds now that they have been cleaned so they drain better. He said a fence gets messy looking as debris collects along it. Mr. Downes asked who will maintain the ponds so they don't get into the eyesore condition they were before. Mr. Schalliol and Mr. Durr responded that the sewer department will be responsible for maintenance. Maintenance should be easier with an access road and equipment that will strain the sediment before it gets into the pond. The bernl has been designed so it can be mowed. 29 South Bend Redevelopment Commission Regular Meeting -February 8, 2011 Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2844 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Ireland Road Improvements -Fellows to Miami - Supplement #1) Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. J. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. K. Proposal for professional services in the South Bend Central Development Area. (Appraisal of College Football Hall of Fame) Mr. Inks noted that we need to get a second appraisal of the College Football Hall of Fame. Jerome Michaels has submitted a proposal to perform that appraisal for a fee of $4,500. Staff recommends accepting that proposal. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission accepted the proposal from Jerome Michaels for the scope of services and fee proposed. 7. PROGRESS REPORTS Mr. Inks noted that the Common Council passed an ordinance requiring sidewalk shoveling. In the past the Commission-owned properties were mostly commercial and snow shoveling was not as much of a problem. Lately, the Commission has been acquiring a number of properties, many of them in residential areas. We COMMISSION APPROVED RESOLUTION NO. 2844 APPROVING AND AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT (IRELAND ROAD IMPROVEMENTS -FELLOWS TO MIAMI - SUPPLEMENT #1) COMMISSION ACCEPTED THE PROPOSAL FROM JEROME MICHAELS FOR THE SCOPE OF SERVICES AND FEE PROPOSED PROGRESS REPORTS 30 South Bend Redevelopment Commission Regular Meeting -February 8, 201 1 needed to get those sidewalks shoveled promptly, so after getting some quotes, we had them shoveled. At the next Commission meeting staff will bring those quotes back to the Commission for ratification. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Tuesday, February 22, 2011 at 4:00 p.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Downes made a motion that the meeting be adjourned. Mr. Varner seconded the motion and the meeting was adjourned at 5:25 p.m. Donald E. Inks, Director 31