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HomeMy WebLinkAbout04-12-11 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING April 12, 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 Members Absent: Mr. Donald Alford Ms. Stephanie Spivey Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. 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. Linda Wolfson, Community Forum for Economic Dev Ms. Mo Miller, Prism Science Mr. Mark Seaman, Prism Science Mr. Paul Phair, Holladay Group Ms. Manette Tepe, Holladay Group Mr. Steve Hartz Mr. Jim Bognar Ms. Patricia Lesniewicz Mr. Charles Loeser Mr. William Howe Ms. Eva Veem 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Tuesday, March 22, 2011. South Bend Redevelopment Commission Regular Meeting—April 12, 2011 3. APPROVAL OF MINUTES (CONT.) Upon a motion by Ms. King, seconded by Mr. COMMISSION APPROVED THE MINUTES OF THE Downes and unanimously carried, the REGULAR MEETING OF TUESDAY,MARCH 22, Commission approved the Minutes of the 2011 Regular Meeting of Tuesday, March 22, 2011. 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted April 12, 2011 for approval. 305 FUND SBCDA BOND ADG 3,150.00 Island Park Pavillion 324 AIRPORT AEDA Hull &Associates, Inc 5,245.85 Oliver Industrial Park Area C Hull &Associates, Inc 4,965.26 Studebaker area A Baker&Daniels 2,018.00 Legal Service 1ST Financial Bank, Escrow Agent 18,402.35 Retainage Dore &Associates 349,644.65 Stude Area A Demolition Ph IV Bid Pkg B Plews Shadley Racher&Braun LLP 332.62 Oliver Plow Works Cost Recovery Plews Shadley Racher&Braun LLP 2.35 Studebaker Cost Recovery Weaver Boos Consultants 14,524.95 Consulting Services Studebaker Area A Demolition Ph IV Big C Lumber 294.54 Ignition Park Indiana Michigan Power 7.00 501 Wenger St. Hathaway 2, Inc. 29,986.27 Ignition Park BSA Lifestructures Inc 20,599.70 Studebaker Cost Recovery Hull &Associates, Inc 47,937.94 Former Allied Sampling Area A Hull &Associates, Inc 30,987.07 Former NSRR Rallyard BSA Lifestructures Inc 14,979.60 Ignition Pk Master Planning Innovation Park 630.00 Monthly Rent Space Ignition Park Ken Herceg &Associates, Inc. 500.00 Sheridan Ave, &Lincoln Way west Design Heppenheimer&Korpal Tax Sale Parcer @709 W Indiana Tax Deed& 625.00 Pub Notifications John Boettcher Sewer&Excavation 50,980.10 Former Norfolk Southern John Boettcher Sewer&Excavation 37,274.46 Former Allied Stamping Baker&Daniels 3,666.30 Legal Service R.E. Pitts &Associates, Inc. 1,850.00 Appraisal Service 1531 S Kemble Ave Meridian Title Corporation 200.00 Title Search ADG 1,000.00 Clubhouse Relocation Sopko,Nussbaum, Inabnit&Kaczmarek 3,420.00 Legal Service 2 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 3. APPROVAL OF CLAIMS (CONT.) 420 FUND TIF DISTRICT-SBCDA GENERAL Ampco System Parking 2,024.75 St Joseph St Surface/225 Main St Rose Pest Solutions 96.00 LaSalle Hotel Pest Control Indiana Michigan Power 33.70 755 S Michigan St. Indiana Michigan Power 273.27 237 N Michigan St. Baker&Daniels 2,983.00 Legal Services Hall of Fame Financing Downtown South bend, Inc 34,375.00 Beautification Program Indiana Michigan Power 118.69 325 - 329 Lafayette Schindler Elevator Corporation 157.17 325 S Lafayette Blvd CB Richard Ellis 1,370.00 LaSalle Hotel Sopko,Nussbaum, Inabnit&Kaczmarek 4,860.00 Legal Service DTSB 20,750.00 Beautification Program McIntyre Jones, Inc. 5,800.00 Main St&Washington Dominiack Mechanical Services, L.L.0 4,300.00 131 S Michigan St. Indiana Michigan Power 293.35 237 N Michigan St. 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT Sopko,Nussbaum, Inabnit&Kaczmarek 393.75 Legal Service 429 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT Meridian Title Corporation 200.00 Title Search 431 FUND SOUTH SIDE DEVELOPMENT TIF AREA 42 Baker&Daniels 1,204.00 Legal services Sopko,Nussbaum, Inabnit&Kaczmarek 697.50 Legal Services 433 REDEVELOPMENT ADMINISTRATION GENERAL Baker&Daniels 814.00 Legal Services $ 723,968.19 Upon a motion by Mr. Downes, seconded by Ms. King COMMISSION APPROVED THE CLAIMS and unanimously carried, the Commission approved the SUBMITTED APRIL 12,2011,AND ORDERED THE Claims submitted April 12, 2011, and ordered checks to CHECKS TO BE RELEASED be released. 4. COMMUNICATIONS There were no Communications THERE WERE NO COMMUNICATIONS 3 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 5. OLD BUSINESS There was no Old Business. THERE WAS NO OED BUSINESS 6. NEW BUSINESS A. South Bend Central Development Area (1) Proposal for professional services (Boundary survey, Intermission Inc. & Harmon Glass) Mr. Schalliol noted that Wightman Petrie has submitted a proposal to provide boundary survey services to the former Harmon Glass parcel and the adjacent property to the west owned by Granger Community Church. The survey work is needed so that we can begin the disposition process for the Harmon Glass parcel. The fee for the survey is $2,765. There are some concerns about an easement so staff requests approval of a not-to-exceed amount of$3,000. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED THE PROPOSAL WITH Ms. King and unanimously carried, the WIGHTMAN PETRIE FOR THE SCOPE OF SERVICES Commission approved the proposal with PROPOSED AND A FEE NOT TO EXCEED$3,000. (BOUNDARY SURVEY,INTERMISSION INC.& Wightman Petrie for the scope of services HARMON GLASS) proposed and a fee not to exceed $3,000. (Boundary survey, Intermission Inc. & Harmon Glass) (2) Proposal for painting services (Former Richey's Radiator building) Mr. Schalliol noted that part of the master plan for the Coveleski Park project was to build a commissary/building. We are not constructing such building at this time, but the field needs additional storage space. The former Richey's Radiator building would serve that need perfectly. The building is 4 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 currently a light green. Ziolkowski Construction has submitted a proposal to paint the building for a fee of$12,698. Staff requests approval of a not-to-exceed amount of$15,000. Upon a motion by Ms. Jones, seconded by COMMISSION APPROVED THE PROPOSAL FROM Mr. Downes and unanimously carried, the ZIOLKOWSKI CONSTRUCTION FOR THE SCOPE OF Commission approved the proposal from SERVICES PROPOSED AND A FEE NOT TO EXCEED Z101kOWSk1 Construction for the scope Of $15,000.(PAINTING OF THE FORMER RICHEY'S 1� RADIATOR BUILDING services proposed and a fee not to exceed $15,000. (Painting of the former Richey's Radiator building) (3) Resolution No. 2864 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement with the Board of Public Works (Two Way Traffic Plan— Lafayette and William, Supplement #1) Mr. Schalliol noted attached Resolution No. 2864 approves an Amendment to the Addendum to the Master Agency Agreement for the two-way traffic plan for Lafayette and Williams Streets— Supplement#1. In February 2010, the City of South Bend hired Wightman Petrie to study and create a master plan for conversion of Lafayette and William Street to two-way traffic. After the completion of the report in March 2011, city staff met with Wightman Petrie staff and determined that some design revisions and additional study needed to be completed for the plan. Specifically on William Street, the additional work will develop a traffic control plan for the section of William from Western to Lincolnway. The additional work scope needed for Lafayette includes the modification of the plan concept to create a two way segment from Western to Wayne and from Lincolnway to Madison with the 5 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 rest of Lafayette remaining one way northbound between Wayne and Lincolnway. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2864 Mr. Varner and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 2864 OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT WITH THE approving and authorizing the execution of BOARD OF PUBLIC WORKS(Two WAY TRAFFIC an Amendment to the Addendum to the PLAN-LAFAYETTE AND WILLIAM,SUPPLEMENT Master Agency Agreement with the Board of #1) Public Works (Two Way Traffic Plan— Lafayette and William, Supplement#1) (4) Resolution No. 2861 approving and authorizing the execution of an Addendum to the Master Agency Agreement with the Board of Public Works (Leighton Parking Garage Capital Improvements) Ms. Jennings noted that Resolution No. 2861 approves an Addendum to the Master Agency Agreement with the Board of Public Works to make capital improvements to the Leighton Parking Garage in 2011. The first improvement is a new parking access and revenue control system, an automated system that eliminates the position of cashier at the gate. The automated system will more accurately account for all cash parkers in the Leighton garage and save the city money. The second improvement is the installation of retrofit LED lighting in the Leighton garage. Staff estimates this will result in a substantial savings in monthly power usage. Staff anticipates the savings will pay for the installation of the LED Lighting in approximately 36 months. Staff recommends approval. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2861 APPROVING AND AUTHORIZING THE EXECUTION 6 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 Mr. Varner and unanimously carried, the OF AN ADDENDUM TO THE MASTER AGENCY Commission approved Resolution No. 2861 AGREEMENT WITH THE BOARD OF PUBLIC approving and authorizing the execution of WORKS(LEIGHTON PARKING GARAGE CAPITAL an Addendum to the Master Agency IMPROVEMENTS Agreement with the Board of Public Works (Leighton Parking Garage Capital Improvements) (5) First Amendment to parking Lease with Central High Associates, LLC. Mr. Inks noted that Item 6.A.(5) and 6.A.(6) are similar and will be explained together. Mr. Meteiver noted that in 1994, the Commission entered into a 30 year lease agreement with Heartland Fund Management, Inc., now Stephenson Mill Associates, LLC, effective September 1, 1994 and terminating September 1, 2024. At the termination of the lease, the tenant has an option to purchase the property for a dollar plus the cost of the improvements made by the Commission in 1994. With respect to the Central High Lease, in 1995, the Commission entered into a 20 year lease agreement with The Alexander Company, Inc., now Central High Associates, LLC, effective December 29, 1995 and terminating December 28, 2015. At the termination of the lease, the tenant has the option to purchase the property for the sum of$299,000. The current status is that both of the properties are being refinanced by Kimberly- Clark Corporation (KKC), the managing member of both of the LLC tenants. In order to refinance, KKC must show a long term interest in both properties for the length of payments of the new loan obligation. For that 7 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 reason, KKC has requested extensions of both leases. For the Stephenson Mill lease, KKC proposes to extend the term of the lease for 35 years. For the Central High lease, which has the $299,000 purchase option at the end, KKC proposes to make a balloon payment of$100,000 when it secures its financing which would be against the purchase option now, with level amortization payments over the life of the lease extension. Subsequently, KKC came to the city and requested a term be placed in the agreements and the extensions to provide for assignability of these leases, subject only to the new tenant to be able to assume the loan obligations that KKC is working on. The current leases provide that the Commission will not reasonably withhold its consent to a request for assignment. The requested additional assignability language makes it easier for them to assign the leases, but reduces the Commission's control over the use of those properties. If we get a proposed use that's not conducive to what we believe the general development of that area should be, then we can withhold consent to the assignability of that particular lease. If they can assume the loan obligation then the assignment is automatic. At this juncture we're requesting that the Commission approve the lease extensions without the assignability clause. Ms. King asked if the assignability clause was required. Mr. Meteiver responded that it is not a deal-breaker. Ms. King asked if there were restrictions as Central High Apartments is required to have a certain percentage of low income tenants. 8 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 Would that be carried forward if the Commission would approve the assignability clause? Mr. Meteiver responded that it would remain the same. Mr. Gibney added that he has heard that that requirement only lasted 15 years and both properties have now been converted to market rate apartments. He has not verified that. Upon a motion by Ms. King, seconded by COMMISSION APPROVED THE FIRST Mr. Downes and unanimously carried, the AMENDMENT TO PARKING LEASE WITH Commission approved the First Amendment CENTRAL HIGH ASSOCIATES,LLC WITHOUT THE ASSIGN ABILITY OPTIONS to parking Lease with Central High Associates, LLC without the assign ability options. (6) First Amendment to Parking Lease with Stephenson Mill Associates, LLC. Upon a motion by Ms. King, seconded by COMMISSION APPROVED THE FIRST Mr. Downes and unanimously carried, the AMENDMENT TO PARKING LEASE WITH Commission approved the First Amendment STEPHENSON MILL ASSOCIATES,LLC WITHOUT THE ASSIGN ABILITY OPTION. to Parking Lease with Stephenson Mill Associates, LLC without the assign ability option. (7) Authorization to declare contract default and right to cure. (Northwest corner Jefferson and St. Joseph Streets (Jeffcourt, Inc.) Mr. Relos noted that in 2008, the Redevelopment Commission entered into a Development Agreement and Contract for Sale of Land for the parking lot at the northwest corner of Jefferson and St. Joseph Streets. Those agreements were with Jeffcourt, Inc., for the redevelopment of that lot into an upscale hotel. As part of those agreements, Jeffcourt had certain obligations, 9 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 which have not been met. Because those obligations have not been met, Jeffcourt is in default of the agreements. The two most noteworthy defaults are: • The property was to be closed on by December 15, 2008. • The project excavation to begin by March 15, 2009, with construction completed within 24 months and a certificate of occupancy issued. To allow this property to be available for possible future development, those agreements should be formally terminated. To do so, written notice to the developer of its defaults under the agreements is required. Upon notification of default, Jeffcourt will have 30 days to cure the default. If this project can move forward in the future, new agreements would be drafted and brought before the Commission. Staff requests Commission authorization to have Richard Nussbaum prepare and mail the letter of default, providing the right to cure. Following the 30 day period, staff will bring to the Commission a resolution to declare the contract terminated. Jeff Gibney added that as staff continues to work with the College Football Hall of Fame, we need to clear this default, in case the property is needed for the reuse of the Hall of Fame. Upon a motion by Mr. Downes, seconded by COMMISSION AUTHORIZED STAFF TO HIRE Mr. Varner and unanimously carried, the RICHARD NUSSBAUM TO DECLARE CONTRACT Commission authorized staff to hire Richard DEFAULT AND RIGHT TO CURE.(NORTHWEST CORNER JEFFERSON AND ST.JOSEPH STREETS Nussbaum to declare contract default and (JEFFCOURT,INC.)INC right to cure. (Northwest corner Jefferson and St. Joseph Streets (Jeffcourt, Inc.) 10 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 B. Airport Economic Development Area (1) Staff report on Voorde Park Improvement Project Mr. Schalliol noted that at the March 22 Commission meeting, the Commission approved a professional services proposal to create concept plans for rehabilitation and reprogramming of Voorde Park. As part of the site planning work, integration of the proposed improvements to Hoosier Tank located at the western end of the park were incorporated into the plan design. The park concept that is proposed to move forward will make basic site improvements at the park hub and include improvements to the shelter and playground area, create a new basketball court and expand the parking lot area. Within the remainder of the park area, a central regulation rugby field will be developed as well as two smaller practice or game fields. The next phase of this project is to develop construction designs and do related development work to get the project ready for construction and to be bid later this summer. To accomplish this project, staff will be bringing to the Redevelopment Commission and the Parks Board a form of agreement that will be prepared by the Legal Department to create a Master Agency type agreement for the project. As part of the agreement, a proposal with Lehman& Lehman for design services, capped at $37,500, will be included with the agreement for approval. The impetus for work in Voorde Park is related to the need for Hoosier Tank to 11 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 expand its facility and to relocate its truck loading and unloading movements out of the public right-of-way. As a replacement for the loss of land on the western side of the site, land at the eastern end of the park owned by District 11 Little League will be incorporated into the overall park site. Mr. Schalliol noted that by programming this park with large multi-use sports fields, the park system will be able to have multi-season use of this site for football, soccer, rugby and lacrosse. Having more activity in the park will enhance the adjacent residential neighborhood and be a complement to the adjacent business neighborhood to the north. Staff requests Commission support for the creation of an agreement between the Redevelopment Commission and the Parks Board for the Voorde Park Improvement Project. Mr. Schalliol will come back to the Commission at a later time to ask for approval to do the rest of the site work. At this time he requested approval of Phase I of the proposal at a cost of$10. Ms. King asked for a time line. Mr. Schalliol responded that we would like to complete construction by the end of the year. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED PHASE I OF THE Mr. Varner and unanimously carried, the LEHMAN&LEHMAN PROPOSAL FOR VOORDE Commission approved Phase I of the Lehman PARK IMPROVEMENTS IN THE AMOUNT OF & Lehman proposal for Voorde Park $10,000. improvements in the amount of$10,000. (2) Staff report on Miracle Park and Blackthorn Mr. Inks asked that Item 6.B.(2) be tabled. Upon a motion by Ms. Jones, seconded by COMMISSION TABLED ITEM 6.B.(2) 12 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 Mr. Downes and unanimously carried, the Commission tabled item 6.13. (2). (3) Resolution No. 2868 amending the Declaration of Protective and Restrictive Covenants of the Blackthorn Corporate Center. Mr. Inks noted that Mr. Hartz wants to start a charter school in a building on Crescent Circle owned by the Panzica Group and previously occupied by CitiGroup. Mr. Inks noted that that Blackthorn Corporate Park is governed by covenants that seem to not allow that type of use. Resolution No. 2868 amends the covenants to allow the school. Mr. Panzica and Mr. Hartz polled the property owners in Blackthorn Corporate Park about their willingness to allow a school. The other owners were all agreeable. Mr. Inks received a letter dated March 31 indicating the support of John Schalliol of the Airport Authority, Pat Brown and representatives from a majority of the Blackthorn Park property. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2868 Mr. Varner and unanimously carried, the AMENDING THE DECLARATION OF PROTECTIVE Commission approved Resolution No. 2868 AND RESTRICTIVE COVENANTS OF THE BLACKTHORN CORPORATE CENTER. amending the Declaration of Protective and Restrictive Covenants of the Blackthorn Corporate Center. (4) Resolution No. 2866 approving the Transfer of Real Property to the City of South Bend (755 S Michigan, 714 W Indiana, 710 W Indiana) Mr. Relos noted that on March 08, 2011, the Commission approved Resolution No. 2854, accepting the transfer of 21 properties in the Ignition Park South expansion area from the Board of Public Works (Board). Those 21 13 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 properties will eventually become part of the Ignition Park PUD. To complete the property transfers between the Commission and the Board, there are three properties owned by the Commission that need to be transferred to the Board. Transferring those properties to the Board will facilitate their eventual transfer to adjoining property owners. The two properties on Indiana Avenue are on the south side of Indiana, and not part of the Ignition Park South expansion area. These two Commission owned properties are vacant lots, and abut a vacant lot owned by the Board. The third lot is at 755 S. Michigan St., next to the Center For Homeless. It was acquired by the Commission on December 14, 2010. It is anticipated this property would be transferred to the Center for Homeless. It is expected these three vacant lots would then be transferred to an adjoining property owner who would like them for his existing business. Staff requests approval of Resolution No. 2866. Mr. Varner asked whether the city would do the demolition or whether the Homeless Center would pay for it. Mr. Relos responded that it would be the responsibility of the Homeless Center. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2866 Ms. King and unanimously carried, the TRANSFERRING THREE PROPERTIES TO THE Commission approved Resolution No. 2866 BOARD OF PUBLIC WORKS. transferring three properties to the Board of Public Works. (5) Authorization to begin process to add property to the Airport Economic Development Area Development Plan List 14 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 of Properties to be Acquired. (Former Target Store, LaSalle Square) Mr. Relos noted that staff requests permission to begin the statutory process to amend the development plan of the Airport Economic Development Area (AEDA), to add to the acquisition list the former Target store in LaSalle Square Shopping Center. The building currently houses the St. Vincent DePaul Society, which is planning to move to another location. Acquiring this property does fit in with the LaSalle Square plan. Mr. Downes questioned whether the Sterling Group still intended to construct senior housing there. Mr. Gibney responded it does and other items on the agenda today move that process along. We currently own land to the west and are in negotiations to acquire and receive as a donation some additional land to the south from Honeywell so we will have a fairly substantial amount of land. Mr. Downes asked if the tax credits had been approved. Mr. Gibney responded that the project was approved for tax credits. Staff requests authorization to begin the preparation of plans, maps, and related property information for this property. Once this information is gathered, staff will present it to the Commission, and then, upon approval of the planning information, will present a declaratory resolution to amend the acquisition list of the AEDA. Upon a motion by Ms. King, seconded by COMMISSION AUTHORIZED STAFF TO BEGIN THE Mr. Downes and unanimously carried, the PROCESS TO ADD PROPERTY TO THE AIRPORT Commission authorized staff to begin the ECONOMIC DEVELOPMENT AREA DEVELOPMENT PLAN LIST OF PROPERTIES TO BE ACQUIRED. process to add property to the Airport (FORMER TARGET STORE,LASALLE SQUARE Economic Development Area Development 15 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 Plan List of Properties to be Acquired. (Former Target Store, LaSalle Square) (6) Resolution No. 2867 related to acquisition of property in the Airport Economic Development Area (1514 S. Prairie, Prairie Salvage) Mr. Relos noted that 1504 — 1514 Prairie Ave. was added to the Airport Economic Development Area Acquisition List by Resolution No. 2668 on May 21, 2010. It was added in an effort to clean and clear the southern boundary of Ignition Park, and to help stabilize the Rum Village neighborhood to the south. The Rum Village Neighborhood Association strongly supports the redevelopment of this area on the north side of Indiana Avenue. This particular property consists of three parcels. The primary piece of this property is the Prairie Salvage store, which sells upholstery and reupholsters furniture. The northerly parcel is 48' x 86', and contains a 1,896 square foot garage and attached workshop. The mid parcel is 45' x 106', and contains a 922 square foot single family residence. The southern parcel is 97' x 86', and contains a 4,016 square foot retail store and a 1,300 square foot separate storage building. The property owner would like to participate in the goals of the Commission in its efforts to clean and clear this area, and contacted Staff with their interest in selling this property. Resolution No. 2867 sets the acquisition value of the property at $63,950. The acquisition value is the average value as determined by two independent appraisals. 16 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 Staff requests approval of Resolution No. 2867. Ms. Jones asked if the business was relocating. Mr. Relos responded that it is. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2867 Ms. King and unanimously carried, the RELATED TO ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 2867 AIRPORT ECONOMIC DEVELOPMENT AREA related to acquisition of property in the (1514 S.PRAIRIE,PRAIRIE SALVAGE Airport Economic Development Area (1514 S. Prairie, Prairie Salvage) (7) Proposals for asbestos inspection reports for properties in Ignition Park South. Mr. Relos noted that in the Ignition Park South expansion area, there are currently 41 properties with structures on them. Most of these structures are houses of varying sizes, some with other out buildings (garages, sheds, etc), and two with larger warehouse type buildings. Before demolition specs can be written for these structures, an asbestos inspection needs to be completed for each of them. To shorten the time frame to get this work done, these 41 properties were grouped by proximity to each other, and a Request for Proposal was sent to four environmental services companies. Based on the RFP's received, three proposals were selected for Commission approval. With three companies working on the asbestos inspections, it will shorten the time needed to get the demo specs written, the demo's bid out, and ultimately clearing these properties. Staff requests approval of the Professional 17 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 Services Agreements with ACM Engineering & Environmental Services in the amount of $3,915, Grauvogel & Associates in the amount of$6,000, and Wightman Petrie in the amount of$6,300. Upon a motion by Ms. King, seconded by COMMISSION ACCEPTED THE PROPOSALS FROM Mr. Downes and unanimously carried, the ACM ENGINEERING,GRAUVOGEL& Commission accepted the proposals from ASSOCIATES AND WIGHTMAN PETRIE FOR THE ACM Engineering, Grauvogel& Associates SCOPE OF SERVICES AND FEES PROPOSED and Wightman Petrie for the scope of services and fees proposed. (8) Contract for Purchase and Sale with Oliver Plow Partners, L.P. for Lot #8 in the Oliver Industrial Park(ABC Supply) Mr. Sikora noted that at the March 22, 2011 meeting the Commission approved the sale of land in Oliver Industrial Park to Oliver Plow Partners, L.P. which plans to construct an approximately 40,000 SF building (of which 5,500 SF is office and showroom) at a cost of$1,750,000 for its tenant ABC Supply Company. The project will retain 10 existing jobs and one part-time job with a total annual payroll of$419,958, while adding two more positions totaling $65,000 per year. The contract includes a sale price of$22,000 for a 4.64 acre portion of Oliver Industrial Park Lot#8 (7.84 acres) and an agreement for the Commission to utilize up to $200,000 in TIF funds to complete necessary site improvements and a commitment to ensure the environmental integrity of the site. Staff is working with the developer to identify the eligible improvements. Staff supports this project in part because it retains a local business within the city; it creates a modest sustained tax base and further populates Oliver Industrial Park. 18 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED THE CONTRACT FOR Mr. Downes and unanimously carried, the PURCHASE AND SALE WITH OLIVER PLOW Commission approved the Contract for PARTNERS,L.P.FOR LOT#8 IN THE OLIVER Purchase and Sale with Oliver Plow Partners INDUSTRIAL PARK(ABC SUPPLY L.P. for Lot#8 in the Oliver Industrial Park (ABC Supply) (9) Resolution No. 2862 related to acquisition of property in the Airport Economic Development Area (921 N. Bendix Drive) Mr. Sikora noted that 921 N Bendix Drive was added to the Airport Economic Development Area Acquisition List by Resolution No. 2736 on August 27, 2010. It was added to help promote overall development within LaSalle Square, in accordance with the LaSalle Square Area Redevelopment Plan, and may be the site of a proposed senior housing project. As outlined in the attached map, the approximately 1.97 acre portion of the property is vacant land currently owned by Faith Apostolic Temple, Inc. bordering the LaSalle branch of the St. Joseph County Public Library to the east, Ardmore to the South, and the Faith Apostolic Temple building and parking lot to the north. Resolution No. 2862 sets the acquisition value of the property at $69,500. The acquisition value is the average value as determined by two independent appraisals. Staff requests approval of Resolution No. 2862. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2862 Mr. Varner and unanimously carried, the RELATED TO ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 2862 AIRPORT ECONOMIC DEVELOPMENT AREA(921 related to acquisition of property in the N.BENDIX DRIVE 19 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 Airport Economic Development Area (921 N. Bendix Drive) (10) Resolution No. 2863 related to acquisition of property in the Airport Economic Development Area (1033 N. Bendix Drive) Mr. Sikora noted that 1033 N. Bendix Drive was added to the Airport Economic Development Area Acquisition List by Resolution No. 2450 on June 23, 2008. It was added in part to help clean up the north east boundary of— and promote overall development within—LaSalle Square, in accordance with the LaSalle Square Area Redevelopment Plan. The 0.8 acre property contains an approximately 34,000 sft commercial retail building (a former Auto Zone). The building has been unoccupied for several years. Resolution No. 2863 sets the acquisition value of the property at $250,000, the average value as determined by two independent appraisals. Staff requests approval of Resolution No. 2863. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2863 Mr. Varner and unanimously carried, the RELATED TO ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 2863 AIRPORT ECONOMIC DEVELOPMENT AREA related to acquisition of property in the (1033 N.BENDIX DRIVE) Airport Economic Development Area (1033 N. Bendix Drive) (11) Request to begin default proceedings for 812 Oliver Plow Court. (Oliver Industrial Park) Mr. Meteiver noted that in 2007 the Commission sold a 4.5 acre site in Oliver Industrial Park to Raitt Corporation. Raitt 20 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 had until 9/7/10 to construct a 50,000 s.f flex-space industrial building on the property. Raitt has not constructed the building within the allowed time frame. Mr. Meteiver spoke to Erick Guerra of Raitt in October 2010 and asked what was happening with the property. Mr. Guerra replied that they were not able to move forward with construction at this time but were still working on obtaining leases for the development and that he would like to request an extension. Mr. Guerra also informed Mr. Meteiver that he has moved to Boca Raton Florida but he planned to be in South Bend every month or so to conduct business. On January 3, 2011 Mr. Meteiver received a letter dated 12/14/10 requesting a two year extension to the Contract for Sale of Land. After the first of the year Mr. Meteiver requested a meeting with Mr. Guerra to discuss their request. To date he has not responded to this request. The staff has discussed the request and it is the staff s opinion that we should not agree to the extension but rather enforce the parts of the Contract that allow us to get the property back and remarket it. The process for getting the land back requires a Notice of Default letter from our attorney (following Commission authorization) giving Raitt 30 days to transfer title back to the Commission. The Commission would need to pay Raitt the purchase price of$114,750 plus pay closing costs of approximately $1,000. If Raitt did not deed the property back to the Commission within the 30 day time period, our attorney would go to court to get the property back. Staff requests the Commission grant authority to the staff to 21 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 begin the default process and authorize Don Inks to sign any necessary documents. Mr. Varner asked whether they purchased this property already and Mr. Meteiver responded yes and they paid us for it. Mr. Varner asked whether we can we market it for more than $114,000? Mr. Gibney responded that we cannot. Chapin Street is gaining a lot of attention with upcoming improvements. If Raitt comes forward soon great, but the staff would like to be free to negotiate. Ms. King asked if we would be paying back the purchase price on property and Mr. Metriever responded that we are. Upon a motion by Ms. King, seconded by COMMISSION AUTHORIZED STAFF TO BEGIN Mr. Downes and unanimously carried, the DEFAULT PROCEEDINGS FOR 812 OLIVER PLOW Commission authorized staff to begin default COURT.(OLIVER INDUSTRIAL PARK) proceedings for 812 Oliver Plow Court. (Oliver Industrial Park) C. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. D. South Side Development Area (1) Resolution No. 2865 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Fellows Street Corridor Improvement Project) Mr. Schalliol noted that over the last several months, city staff has been working to finalize design plans for the Main-Lafayette Connector project that will aid in traffic circulation in the area west of Michigan Street between Chippewa and Ireland. City 22 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 staff has also been working on street and intersection improvements on Ireland Road at High Street and doing related storm water management work at the Erskine Plaza Ponds located north of Erskine Plaza. As city staff has been working on the above projects, and also preparing for the impacts of the INDOT upgrade of US 31, staff has asked Christopher B. Burke Engineering Ltd. staff to help coordinate these infrastructure projects in an overview format as well as begin a study of the Fellows and Ireland and Fellows Street north to Chippewa in preparation of the INDOT plan to bridge the US 20 Bypass with a new connector roadway on the Fellows Street alignment from Gilmer Park south of the bypass to the intersection of Ireland and Fellows. The state anticipates that roadway to be completed in 2013. Christopher Burke Engineering proposes to segment work into three initial phases and do the following work: 1. Community Plan Development 2. Survey and Geotechnical Investigation 3. Concept Plan Development After a plan is completed, the project will move into a construction plan design phase and then to construction. A report of the plan concepts and design plan will be presented to the Commission and Board of Works for comment before moving into the final phase of work. Staff requests approval of Resolution No. 2865 and the Addendum To Master Agency Agreement for the Fellows Street Corridor Improvement Project. The work we propose to do is put together 23 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 what we call a Community Planned Development, a survey and geotechnical investigation to better understand issues. The first phase of work will total $177,000 which would get us to 30% construction and then move to the second phase of the project and other costs associated with that. Ms. King asked when the State's part of the project would be done. Mr. Schalliol answered that the Fellows bridge-over is to be complete by 2013. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2865 Ms. King and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 2865 OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT(FELLOWS STREET CORRIDOR approving and authorizing the execution of IMPROVEMENT PROJECT) an Addendum to the Master Agency Agreement (Fellows Street Corridor Improvement Project) E. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. F. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. G. Ratification of Services Contracts Commission Contractor Service Contract Staff Role in Provided Amount Member Transaction 1513 S. Kemble Disposition David Waszak& Appraisal $2,400 Relos Ave. Assoc. Proposal 717 E. LaSalle Acquisition Meridian Title Title Work $100 Relos 420 N Hill Acquisition Meridian Title Title Work $100 Relos Upon a motion by Ms. King, seconded by Mr. Downes COMMISSION RATIFIED THE SERVICES CONTRACTS APPROVED BY STAFF SINCE MARCH 24 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 and unanimously carried, the Commission ratified 22,2011 the services contracts approved by staff since March 22, 2011. H. Ratification of Temporary Use Agreements Use/Agency Lot Event Dates of Use Oliver Plow Lot#2 Oliver Plow Soil excavations March 28, 2011 Partners Industrial Park through August 30, 2011 Naptown Shillings building Storage of April 12, 2011 Riders 325-329S. miscellaneous through July 12, Lafayette property 2011 Upon a motion by Ms. King, seconded by Mr. COMMISSION RATIFIED THE TEMPORARY USE Downes and unanimously carried, the Commission AGREEMENTS APPROVED BY STAFF SINCE ratified the temporary use agreements approved by MARCH 22,2011 staff since March 22, 2011. 7. PROGRESS REPORTS Mr. Gibney noted that there is a lot of construction PROGRESS REPORTS going on south of Memorial Hospital, with curb cuts and metal roll bumpers coming out, removing trees growing in middle of parking areas. We began last fall by putting a new face on the Bartlett Street parking garage. We are working full speed ahead to enhance that whole drive coming into South Bend. The land in front of the Masonic Temple will be landscaped. Memorial Hospital lends all that parking for free parking for special event nights at the Morris Civic Auditorium. We estimate that the work will be done by July.. Ms. Jones asked whether we will be done with the medical TIF. Mr. Gibney responded that the hospital is generating that medical TIF and we're putting it back into improvements. It provides other benefits as well. Mr. Gibney added that he was at the Rink site and work is still in progress. Mr. Matthews is personally improving the appearance of the Mannaerchor Club. 25 South Bend Redevelopment Commission Regular Meeting—April 12, 2011 Mr. Schalliol gave a brief update on progress at the Coveleski Stadium. The first phase is coming together. They're working on the outside, the outfield, center field entrance, starting construction on the ticket offices later this week, sewer pipes, sidewalk improvements. We expect to have everything complete by the end of June or first of July. We now have ownership of the Michiana Lock& Key building. They have started improvements on their new building on the east bank. They expect to be out of their old building by the 30th of June. We will then tear that building down. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment NEXT COMMISSION MEETING Commission is scheduled for Tuesday, April 26, 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 5:00 p.m. MOO L . _.. . 26