The URL can be used to link to this page

Home My WebLink About04-26-11 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING April 26, 2011 4:00 p.m. 227 West Jefferson Boulevard Presiding: Dr. David Varner, Vice President South Bend, Indiana 1. ROLL CALL Members Present: Dr. David Varner, Vice President Mr. Greg Downes Mr. Donald Alford Members Absent: Ms. Marcia Jones, President Ms. Nancy King, Secretary Ms. Stephanie Spivey Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff Mr. Jeffrey Gibney, Executive 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 Ms. Beth Leonard Inks, Director, Financial & Prog. Mgmt. Ms. Kathy Hahn, Business Assistant Ms. Patti Lesniewicz, Economic Development Mr. Paul Phair, Holladay Group Ms. Mo Miller, Prism Science Ms. Linda Wolfson, Community Forum for Economic Dev. Ms. Geri Hathaway, Hathaway2, Inc. Mr. Mark Peterson and photographer, WNDU Mr. John Paul and photographer, WSBT Ms. Rita Kopala Mr. Tim Firestone Mr. Jim Bognar Mr. Don Reinke Mr. John Voorde, City Clerk Mr. Tom Kinnucan, Hoosier Tire Ms. Sue Kinnucan Mr. Bill Welsh, Hoosier Tire Mr. Brad Mosness, Abonmarche Group Mr. Beene Veen, Prairie Salvage South Bend Redevelopment Commission Regular Meeting—April 26, 2011 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Tuesday, September 16, 2011. Upon a motion by Mr. Downes, seconded by Mr. COMMISSION APPROVED THE MINUTES OF THE Alford and unanimously carried, the Commission REGULAR MEETING OF TUESDAY,APRIL 12, approved the Minutes of the Regular Meeting of 2011. Tuesday, April 12, 2011. 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted April 26, 2011 for approval. 305 FUND SBCDA BOND Wightman Petrie 46,138.75 Coveleski Stadium Wightman Petrie 4,089.00 William&Lafayette Traffic Analysis 324 AIRPORT AEDA David Waszak Appraisals, Inc 2,400.00 1531 Kemble St DHA 3,384.00 Survey Tech Ignition First Impression landscaping 6,550.00 Snow Removal Blue Waters Group 45,604.00 Ignition Park Marketing DLZ 20,552.50 Studebaker Area A Demolition Ph IV Grade Rite 50,112.50 Lincoln Way/Olive Rd Demo The Apprentice Academy 15,277.77 Training Programs Hathaway 2 Inc. 7,199.83 Ignition Park 1st Financial Bank, 26,569.90 Studebaker Area A Demolition PH IV Dore &Associates Contracting 299,655.10 Studebaker Area A Demolition PH IV Hull &Associates Inc 925 General Environmental Consulting Meridian Title Corporation 600 Trade Drive Innovation Park 498.33 Monthly Rental Space Crowe Horwath LLP 5,591.19 Assessed Values South Bend Water Works 2,700.75 Unity Garden Hull &Associates, Inc 752.74 Oliver Industrial Park Hull &Associates, Inc 727.5 Studebaker Area A L.L. Geans Construction Co. 156,870.98 Oliver Plow Mem/Oliver Trail/Oliver Ind. Park Krause Associates, LLC 1,000.00 Appraisal Meridian Title Corporation 350 Commercial Search Meridian Title Corporation 550 Search&Exam Fee ARC 93.56 Trade Drive DNA 29,900.00 Mayflower Rd from Cleveland to Brick Rd Wightman Petrie 1,400.00 1202 S Lafayette Lehman&Lehman 21,177.03 Voorde Park Master Plan Christopher B. Burke 2,909.00 Demo of 1503 / 1505 Prairie Ave ARC 1,466.96 Oliver Plow 2 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 3. APPROVAL OF CLAIMS (CONT.) 324 AIRPORT AEDA Fossil Industries, Inc. 2,400.00 Oliver Plow Memorial Design for F43412 Tuck Langland 45,000.00 James Oliver Memorial Sculpture DHA Oliver Trail System along Olive Plow 3,345.00 Ct/Chapin/United Dr Plews Shadley Racher&Braun Oliver Plow Works Cost Recovery/Studebaker Cost 63.62 Recovery St. Joseph County Treasurer 4,381.54 2010 payment 2011 Property Taxes RC Wightman Petrie 1,113.74 Ignition Park Demolition&Inspection DHA 4,050.00 Data Realty Site Christopher B. Burke 483 CO Services for Demo of 236 Sample Graham-Allen Partners 47,972.50 Ignition Park Feasibility Study& Strategic Plan 420 FUND TIF DISTRICT-SBCDA GENERAL First Impression landscaping 2,450.00 Snow Removal NIPSCO 32.1 329 S. Lafayette Blvd Crowe Horwath LLP 1,982.02 Assessed Values Ampco System Parking 2,720.50 225 Main St/St. Joe Street Surface Edward J. White, Inc. 1,344.00 Schilling Camera Building Rose Pest Solution 96 LaSalle Hotel South Bend Water Works 35.91 325 S. Lafayette Blvd Indiana Electric Power 7 501 Wenger St. Indiana Electric Power 6.65 755 S Michigan St. J Morris 6,200.00 Coveleski Stadium Snow removal Fisher Athletic Equipment, Inc. 22,356.00 Coveleski Stadium 422 FUND WEST WASHINGTON DISTRICT Crowe Horwath LLP 234.72 Assessed Values 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT Crowe Horwath LLP 1,875.95 Assessed Values Ancon Construction, Co. 224,966.87 Memorial Hospital Streetscapes Improvements AEP 2,121.17 Relocation at Customer Request 429 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT Crowe Horwath LLP 114.23 Assessed Values 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA 41 Crowe Horwath LLP 4,011.21 Assessed Values Christopher B. Burke 31,581.50 Intersection Improvements Lawson-Fisher Associates PC 3,791.26 South Main St to Lafayette Boulevard Connector C&E Excavating, Inc. 351,807.14 Erskine Detention Pond Reconstruction Christopher B. Burke 619 Demo of 748 Hawbaker&4215 Main St. 3 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 3. APPROVAL OF CLAIMS (CONT.) 435 FUND DOUGLAS ROAD Crowe Horwath LLP 185.51 Assessed Values 436 FUND NORTHWEST RESIDENTIAL Crowe Horwath LLP 1,005.18 Assessed Values 438 FUND COVELESKI BOND Larson Danielson Construction 585,455.07 Coveleski Stadium Ziolkowski Construction, Inc. 848,903.40 Coveleski Stadium Improvements Daktronics, Inc 879,966.00 Coveleski Stadium-Scoreboard $ 3,837,724.18 Upon a motion by Mr. Downes, seconded by Mr. Alford COMMISSION APPROVED THE CLAIMS and unanimously carried, the Commission approved the SUBMITTED APRIL 26,2011,AND ORDERED Claims submitted April 26, 2011, and ordered checks to CHECKS TO BE RELEASED. be released. 4. COMMUNICATIONS There were no Communications. THERE WERE NO COMMUNICATIONS 5. OLD BUSINESS There was no Old Business. THERE WAS NO OLD BUSINESS 6. NEW BUSINESS A. Receipt of Bids (1) Receipt of bids for property located at 111 S. St. Joseph St. (College Football Hall of Fame) Mr. Sikora noted that the Commission RECEIPT OF BIDS FOR PROPERTY LOCATED AT approved bid specifications and design I I I S. ST.JOSEPH ST.(COLLEGE FOOTBALL considerations for the College Football Hall HALL OF FAME) of Fame, 111 S. St. Joseph St. at its March 22, 2011, meeting. The Notice of Intended Sale of Property was advertised in the Tri-County News and the South Bend Tribune on March 25 and April 1. No bids 4 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) A. Receipt of Bids (1) continued... were received by the 10:00 a.m. deadline this morning. Mr. Varner asked where we go from here. Mr. Sikora responded that there is still a private party interested in the property. Staff will continue to negotiate with them. An offer cannot be entertained by the Commission until 30 days after the Receipt of Bids, but the legal requirements have been met after that 30 days any offer can be entertained. (2) Receipt of bids for property located at 122 South Niles Avenue. Mr. Sikora noted that the Commission RECEIPT OF BIDS FOR PROPERTY LOCATED AT approved bids specifications and design 122 SOUTH NILES AVENUE considerations for 122 South Niles Avenue at its March 22, 2011, meeting. 122 S. Niles is the property the Commission acquired on the corner of Niles and Jefferson from 1St Source Bank. The Notice of Intended Sale of Property was advertised in the Tri-County News and the South Bend Tribune on March 25 and April 1. No bids were received by the 10:00 a.m. deadline this morning. B. Tax Abatements (1) Resolution No. 2869 approving an application for real property tax deduction for property located at 1710 North Sheridan Street in the Airport Economic Development Area. (Hoosier Tank and Manufacturing) 5 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) B. Tax Abatements (1) continued... Ms. Hahn made a combined staff report on the real and personal property tax abatements for Hoosier Tank. Hoosier Tank and Manufacturing, Inc. is a manufacturer of air pressure reservoirs for OEM truck and trailer manufactures domestically and internationally. Hoosier Tank proposes to: (a) construct a 70 x 290 foot addition (total additional area is 20,300 sq. ft.)to its existing building; and (b) install equipment for a new production line. The addition will provide new shipping docks with a turnaround access for six semitrailers, new warehouse space and a shipping area to accommodate their customers' shipping needs. The addition will free up manufacturing floor space and allow the company to add machinery for a complete third production line which will increase its production capacity by 25 percent. Hoosier Tank is requesting a seven- year abatement for the real property improvements it intends to make to the building. The cost of the construction portion of the project is estimated at $760,000. The equipment for the production line includes a dust collector, air make-up vent, new diameter tooling, leveler for shear, laser cutter, roller, leak detection system, progressive strap bracket die, forklift, washer, assembler, and an automated powder spray paint system. The estimated cost of the equipment is $1,175,000. The project's total cost is estimated at up to $1,935,000. The project will move the company's truck 6 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) B. Tax Abatements (1) continued... dock to a better location that will eliminate a major traffic obstruction from trucks using the street for turning and backing up to the current dock. This is something the city has been working with Hoosier Tank to alleviate for approximately two years. Total taxes to be abated during the seven- year real property abatement period are estimated at $31,422. Total additional taxes to be paid as a result of the project during the seven-year abatement period are estimated at $127,079. Total taxes to be abated during the (5) five- year personal property abatement period are estimated at $15,607. Total additional taxes to be paid as a result of the project during the five-year abatement period are estimated at $82,001. Ms. Hahn noted that it is estimated the project will create fifteen new, permanent full-time positions with an annual payroll $600,000. The project will also maintain seventy-two existing permanent full-time positions, including twenty-two existing permanent full-time minority employees, with a total annual payroll of$3,000,000. Hoosier Tank has had one real property abatement and four personal property abatements since 1993. The property is properly zoned for the proposed use. The property is located in the Airport Economic Area, which is a Tax Incremental Allocation 7 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) B. Tax Abatements (1) continued... Area; therefore, the petition for real property tax deduction must first be approved by the South Bend. The property meets the qualifications for a seven-year real property abatement and for a five-year personal property abatement under the tax abatement ordinance Mr. Varner said he is happy to hear that Hoosier Tank is doing well and growing. Mr. Reinke asked if the public could make comment on the abatement. Mr. Varner responded that today's meeting is not a pubic hearing. The Common Council will consider the abatements next and there will be opportunity for public comment at that meeting. Upon a motion by Mr. Downes seconded by COMMISSION APPROVED RESOLUTION No.2869 Mr. Alford and unanimously carried, the APPROVING AN APPLICATION FOR REAL Commission approved Resolution No. 2869 PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1710 NORTH SHERIDAN STREET IN approving an application for real property tax THE AIRPORT ECONOMIC DEVELOPMENT UREA. deduction for property located at 1710 North (HOOSIER TANK AND MANUFACTURING) Sheridan Street in the Airport Economic Development Area. (Hoosier Tank and Manufacturing) (2) Resolution No. 2870 approving an application for personal property tax deduction for property located at 1710 North Sheridan Street in the Airport Economic Development Area. Upon a motion by Mr. Downes seconded by COMMISSION APPROVED RESOLUTION No.2870 Mr. Alford and unanimously carried, the APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1710 8 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) B. Tax Abatements (2) continued... Commission approved Resolution No. 2870 NORTH SHERIDAN STREET IN THE AIRPORT application for personal property tax ECONOMIC DEVELOPMENT UREA.(HOOSIER deduction for property located at 1710 North TANK AND MANUFACTURING) Sheridan Street in the Airport Economic Development Area. (Hoosier Tank and Manufacturing) C. South Bend Central Development Area (1) Amendment to Lease with Bombay Boutique, Inc. (119 South Michigan St.) Ms. Jennings reported that due to the depressed economy, Bombay Boutique, a long-time downtown South Bend retailer is experiencing a slump in business. As a result, Bombay Boutique fell behind in its monthly rental payments and has requested a rent concession for one year, which is the duration of its lease term. Bombay acknowledges $4,839.84 in delinquent rent owed to date. They would like to make monthly payments of$403.32 for the next twelve (12) months on the delinquency. Bombay has also requested a reduction in its base rent and Common Area Maintenance (CAM) to a total of$10,000 per year ($833.33 per month). Currently its base rent is $1,159 per month, and CAM is $495.69 per month, for a total monthly rent of $1,654.69. With the new Lease Amendment, Bombay Boutique agrees to pay $1,236.65 per month ($833.33 rent and CAM) and $403.32 9 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... delinquent rent commencing on May 1, 2011, and ending on April 30, 2012. Additionally, Bombay agrees to pay 10% in extra rent on gross sales over $100,000 annually. Bombay will be required to forward cash sales accounting monthly. As an incentive for Bombay to pay as agreed, $1,427.08 in late fees will not to be included in the delinquent rent; however, if they do not follow the terms of the amended agreement, the late fees will be restored to the account and the terms will revert from the amendment to original lease terms. Staff recommends approval of the proposed Lease Amendment. Mr. Varner asked whether the staff is confident that Bombay will be able to make these lease terms? Ms. Jennings stated that Bombay is confident and the staff is as well. Mr. Gibney added the staff met with DTSB earlier today and Bombay is in regular communication with DTSB. They are a great champion of downtown South Bend and DTSB very much supports this adjustment. Mr. Downes added that Bombay has been a good downtown tenant and if the Commission doesn't make concessions it will lose that delinquent rent, and this is less a concession than that amount would be. Mr. Gibney also stated that this isn't the first 10 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... time we have done that where tenants have been able to catch up. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE AMENDMENT TO Mr. Alford and unanimously carried, the LEASE WITH BOMBAY BOUTIQUE,INC.(119 Commission approved the Amendment to SOUTH MICHIGAN. Lease with Bombay Boutique, Inc. (119 South Michigan. (2) Request to solicit appraisals for Commission owned property in Monroe Park. Ms. Jennings noted that the Redevelopment Commission is the owner of twelve (12) properties leased to the Housing Development Corporation. HDC dissolved its rental program back in 2009 and sold the majority of its properties. The Redevelopment Commission is the owner of some of the remaining properties and appraisals are needed as part of the disposition process. Therefore, staff is requesting to obtain two appraisals on the following properties, not to exceed $750 per property. 310, 611, 613 and 701 E. South St. 609 and 620 Columbia St. 602 Carroll St. 618, 622 and 626 LWE 514 and 628 Rush St. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED REQUEST TO SOLICIT Mr. Alford and unanimously carried, the APPRAISALS FOR COMMISSION OWNED Commission approved request to solicit PROPERTY IN MONROE PARK. 11 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (2) continued... appraisals for Commission owned property in Monroe Park. D. Airport Economic Development Area (1) Resolution No. 2872 approving and accepting a counteroffer for the acquisition of property in the Airport Economic Development Area (1504-1514 Prairie Ave.) Mr. Relos noted that on April 12, 2011, the Commission approved Resolution No. 2867, which set the offering price for the Prairie Salvage property at $63,950, the average of two independent appraisals. The owners of this property have made a counter offer of$104,000. They feel this value is a more appropriate value for their long standing business location, which includes three parcels of land, a house (922 square feet, in good condition, with full basement), and various retail and storage buildings (total of 7,200 square feet under roof). The land value alone of these properties appraised at $32,000. In addition to the acquisition price of $104,000 for this property, relocation and moving expenses of$246,000 are needed, broken down as follows: • $65,000 to move large amounts of fabric, equipment, shelving, etc, and store and set up at the new location 12 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) continued... • $181,000 to acquire and refashion the new location on State Road 2 just west of town (the old Jeep Acres property). Staff feels the total acquisition, relocation, and moving costs of$350,000 for this property is reasonable, and requests approval of Resolution No. 2872 and relocation expenses of$246,000, to allow for the acquisition and relocation of this property. Mr. Downes asked if the house was occupied now. Mr. Relos responded that it is. Mr. Downes asked if it is a rental. Mr. Relos responded that it is a rental. Mr. Varner questioned whether acquisition of this property is critical right now to justify the expenditure of$350,000. Mr. Relos responded that it has quite a long frontage on Prairie, a gateway to Ignition Park. It will be useful in the development of Ignition Park. Mr. Varner wondered if the large relocation cost is reasonable. Mr. Relos responded that businesses typically have much higher relocation costs than residences. The calculation of relocation costs is based on government guidelines. Mr. Gibney added that that area along Prairie will be an important western edge of Ignition Park. We will eventually want to acquire it. Since Prairie Salvage wants to sell now, he believes it is prudent to purchase it now. 13 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) continued... Mr. Varner stated that it's potentially a valuable piece of property, but not needed by the city today. He thought the owner could get more money ($500,000) for it later if he waited until development had occurred in Ignition Park. He thought a developer might purchase it directly without city involvement. Mr. Gibney responded that a future developer would expect to purchase cleared land. No developer would pay $300,000- $500,000 for that property without the city's involvement, because of the predevelopment costs. Mr. Alford said he was not familiar with the Jeep Acres property. He wondered if the new location would improve Prairie Salvage's business prospects. Mr. Downes said that he would be concerned that development of Ignition Park might be hindered if the Commission does not acquire this property. Mr. Relos noted that if the Commission is satisfied that the $104,000 is a reasonable price for the property, which he believes it is, then the relocation costs are what they are. There was a small building on the property which the appraisers gave no value to. Mr. Relos believes it to be worth something. Mr. Downes made a motion to approve COMMISSION REJECTED RESOLUTION No.2872 Resolution No. 2872. Mr. Alford seconded the motion. The motion failed on a vote of two to one. Mr. Varner was opposed. 14 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) continued... Mr. Varner then desired to reconsider his COMMISSION RETRACTED ITS VOTE ON vote and retracted his vote. Prior to Mr. RESOLUTION No.2872 Varner's vote. Mr. Alford retracted his second and Mr. Downes retracted his motion. Upon a motion by Mr. Downes, seconded by COMMISSION TABLED ITEM 6.D.(1) Mr. Alford and unanimously carried, the Commission tabled Item 6.D.(1) (2) Resolution No. 2871 amending the Development Plan for the Airport Economic Development Area and adding one or more parcels to the List of Parcels to be Acquired. (3408 Ardmore Tr) Mr. Relos noted that on April 12, 2011, the Commission authorized staff to conduct surveys and investigations, and to gather information and study the prospect of adding 3408 Armore Trail to the List of Properties to be Acquired in the Airport Economic Development Area (AEDA). 3408 Ardmore Trail is an 83,000 square foot commercial building on 8 acres, most recently used by St. Vincent de Paul. The acquisition of this property would allow the Commission to consolidate it with the abutting 8.7 acres Commission owned property, making a larger marketable property for redevelopment. Expected cost of acquisition is $750,000. Upon approval by the Commission, resolutions will be put before the Area Plan Commission and Common Council for their approval, before a Public Hearing and 15 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (2) continued... Confirming Resolution would be presented to the Commission for final approval. Approval for advertising for the Public Hearing is also requested of the Commission. Advertising would be done after approval from the Common Council is granted. Staff believes it would be of public utility and benefit to amend the Development Plan by adding this property to the acquisition list and allowing this acquisition. Staff requests Commission approval of Resolution No. 2871 and the necessary advertising to carry it through. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2871 Mr. Alford and unanimously carried, the AMENDING THE DEVELOPMENT PLAN FOR THE Commission approved Resolution No. 2871 AIRPORT ECONOMIC DEVELOPMENT AREA AND ADDING ONE OR MORE PARCELS TO THE LIST OF amending the Development Plan for the PARCELS TO BE ACQUIRED.(3408 ARDMORE TR) Airport Economic Development Area and adding one or more parcels to the List of Parcels to be Acquired. (3408 Ardmore Tr) (3) Proposal for professional services for property adjacent to the Transpo property in the 1150 block of S. Franklin Street. (ALTA Survey for proposed Data Realty site in Ignition Park) Mr. Relos noted that Danch, Harner& Associates submitted a proposal to do an ALTA and Topographic survey, and Minor Subdivision for a relocated Data Realty site within Ignition Park. These items will need to be completed as part 16 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (3) continued... of the land sale to Data Realty of this new parcel within Ignition Park. After reviewing where best to locate within Ignition Park, it was determined that a location west of Transpo would be more appropriate than a site north of Transpo. This new location will place Data Realty near the electrical substation that will power the Park, and also closer to Transpo for energy efficiency sharing. The cost of the ALTA survey will be $2,650 to $2,850. The cost of the Topographic survey will be $2,900 to $3,550, with additional costs if any revisions are requested. The cost of the Minor Subdivision is $4,175. Staff requests approval of the attached ALTA and Topographic survey, and Minor Subdivision professional services agreements, in a not to exceed amount of $11,000. Upon a motion by Mr. Downes, seconded by COMMISSION ACCEPTED THE PROPOSAL FROM Mr. Alford and unanimously carried, the RANCH HARNER&ASSOCIATES FOR THE SCOPE Commission accepted the proposal from OF SERVICES PROPOSED AND A FEE NOT TO Danch Harner& Associates for the scope of EXCEED$11,000 services proposed and a fee not to exceed $11,000. (4) Request to use Airport Economic Development Area Tax Increment Financing funds for the purchase of capital equipment for Blackthorn Golf Course. 17 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (4) continued... Ms. Leonard noted that staff is requesting permission to use approximately $75,000 of Airport TIF monies to finance the purchase of 3 pieces of maintenance equipment for the golf course. The Airport TIF monies will be repaid by Blackthorn Golf Course at 0% interest over 8 years—making 6 seasonal payments totaling approximately $9,400 per year to efficiently manage cash flow. The pieces are: 1 Triplex Green Mower; 1 Walking Aerator for Greens; and 1 Green Tee Bank Mower. These pieces will replace current equipment pieces which are each over 15 years old. The bids for this equipment are currently under review. If the Commission does not approve financing through TIF, we will need to seek financing through the vendor, at a higher cost. Ms. Leonard provided a pro forma for Blackthorn operations and capital through 2016 which shows we expect sufficient cash flow to support these payments. In addition, we have added additional anticipated capital needs to the forecast. If net operating income does not meet projections, these additional capital purchases will need to be adjusted. In any case, we would expect the $9,400/year payment requested here would not cause an undue burden on Blackthorn operations. Mr. Varner asked why we wouldn't deplete Blackthorn's capital funds before tapping TIF funds. Ms. Leonard responded that the capital funds are earmarked for other capital expenditures. 18 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (4) continued... Upon a motion by Mr. Downes, seconded by COMMISSION AUTHORIZED THE EXPENDITURE OF Mr. Alford and unanimously carried, the AIRPORT ECONOMIC DEVELOPMENT AREA TAX Commission authorized the expenditure of INCREMENT FINANCING FUNDS FOR THE PURCHASE OF CAPITAL EQUIPMENT FOR Airport Economic Development Area Tax BLACKTHORN GOLF COURSE Increment Financing funds for the purchase of capital equipment for Blackthorn Golf Course. (5) Lease Agreement with Oliver Plow Partners, LP for Lot #2, Oliver Industrial Park. Mr. Sikora noted that the "Contract for Purchase and Sale" of 4.64 acres of land in Oliver Industrial was approved during the Redevelopment Commission meeting on April 12, 2011. As part of its commitment, the Commission agreed to spend up to $200,000 to complete necessary site improvements. Redevelopment staff, in conjunction with the Department of Engineering, have been working closely with the developer to identify those improvements and associated costs and to outline the bidding process and construction timelines. The purpose of the Lease Agreement is to allow improvements to the site to be made in a way that satisfies the project's time constraints and allows for greater coordination and implementation of the Commission's commitment. The Lease Agreement does not significantly alter the terms of the Contract (or commitments made by each party therein) that was approved on April 12, 2011. 19 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (5) continued... Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE LEASE Mr. Alford and unanimously carried, the AGREEMENT WITH OLIVER PLOW PARTNERS,LP Commission approved the Lease Agreement FOR LOT#2,OLIVER INDUSTRIAL PARK with Oliver Plow Partners, LP for Lot#2, Oliver Industrial Park. (6) Proposal for professional services related to LaSalle Square (Rezone, minor subdivision, etc.) Mr. Sikora noted that the Abonmarche Group has submitted a proposal to provide assistance in the Airport Economic Development Area (LaSalle Square) in conjunction with a proposed senior housing development. This includes rezoning, establishing right-of-way for the extension of Bonds Avenue and a new city street adjacent to the Library, and creating a legal parcel for the project. There are three separate parts to this proposal: Part I: Rezoning Process—includes coordinating with City staff to outline the proposed rezoning, prepare and submit the required application, petition request, legal description, preliminary site plan with required information, maps, listing of adjacent property owners, stamped/addressed envelopes, and public hearing notification forms to the City Clerk's office for review and processing. Abonmarche will present the project at the Area Plan Commission public hearing, City of South Bend Zoning Committee and Common Council public hearings to offer technical support. It is 20 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (6) continued... anticipated that the City and Sterling Development will present the petition at the public meetings. Cost for this portion is $2,200 plus filing fees of$400+/-. Staff requests a not-to-exceed amount of$2,750 in the event any additional review work would be required. Part 11: R/W Legal Descriptions and Exhibit —includes working with City staff on the proposed alignments for Bonds Avenue and the new City Street adjacent to the St. Joseph County Library. Once the alignments are set, legal descriptions and an exhibit shall be prepared for the land needed from the property owners. The City's attorney shall incorporate the legal descriptions and exhibit into the acquisition documents. Cost for this portion is $2,800. Staff requests a not-to- exceed amount of$3,000. Part III: Minor Subdivision Process— includes performing a boundary survey of the subject parcels in accordance with Rule 12 of the Indiana Administrative Code and preparation of a subdivision plat, support data sheet, and application in order to create a legal parcel for the project. Abonmarche will represent the City's interests at the required meetings held at Area Plan. Lots corners, as defined on the plat, shall also be set. Cost for this portion is $8,900 plus filing fees of$325+/-. Staff requests a not-to- exceed amount of$9,500 in the event any additional review work would be required. 21 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (6) continued... Staff request approval of this Professional Services Agreement for a not-to-exceed amount of$15,250. Mr. Varner asked what the timeline is for the project. Mr. Gibney responded that the developers must have ten percent of the investment of the total project in the ground by the end of 2011. So, we expect groundbreaking in August. Upon a motion by Mr. Downes, seconded by COMMISSION ACCEPTED THE PROPOSAL FROM Mr. Alford and unanimously carried, the THE ABONMARCHE GROUP FOR PROFESSIONAL Commission accepted the proposal from the SERVICES RELATED To LASALLE SQUARE Abonmarche Group for professional services (REZONE,MINOR SUBDIVISION,ETC. related to LaSalle Square (Rezone, minor subdivision, etc.) E. West Washington-Chapin Development Area (1) Resolution No. 2860 amending the Development Plan for the West Washington-Chapin Development Area and adding one or more parcels to the List of Parcels to be Acquired (803 West Washington St.) Mr. Relos noted that on March 22, 2011, the Commission authorized staff to conduct surveys and investigations, and to thoroughly study the West Washington Chapin Development Area (WWCDA). The process included the gathering of information on the parcel to be added, and an estimation of costs associated with its acquisition and redevelopment. 22 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) E. West Washington-Chapin Development Area (1) continued... This property was originally built as a three- story private residence for the William L. Kizer family. Mr. Kizer came to South Bend from Ohio in 1865. In 1869, Mr. Kizer formed a firm that conducted business in real estate, loans, and insurance, and made investments in Illinois, Indiana, and Michigan. Upon acquisition of this property, staff will work with South Bend Heritage Foundation for the building's adaptive reuse, hopefully incorporating it into the museum campus. Expected cost for the acquisition and stabilization of this property is $300,000. Upon approval by the Commission, resolutions will be put before the Area Plan Commission and Common Council for their approval, before a Public Hearing and Confirming Resolution would be presented to the Commission for final approval. Approval for advertising for the Public Hearing is also requested of the Commission. Advertising will be done after approval from the Common Council is granted. Mr. Downes asked what the expected "adaptive reuse" would be. Mr. Gibney responded that our ideas are that it could be used for some overflow office space, possibly some housing for interns working at the museums. It sits on a very prominent corner and has been undermanaged for many years. 23 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) E. West Washington-Chapin Development Area (1) continued... Mr. Alford expressed concern that this project might take focus away from the children's dispensary project which has not had much progress since its approval last year. He also wondered what would happen to the tenants in the Kizer building. Mr. Gibney responded that the Kizer building has two tenants. Mr. Gibney also responded that the children's dispensary is in a stage where the Center for Latino Studies is raising the funds for the project. It is on target for moving forward this fall. City funds for this project have been held in reserve, waiting for Notre Dame to raise its share of the funds. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2860 Mr. Alford and unanimously carried, the AMENDING THE DEVELOPMENT PLAN FOR THE Commission approved Resolution No. 2860 WEST WASHINGTON-CHAPIN DEVELOPMENT AREA AND ADDING ONE OR MORE PARCELS TO amending the Development Plan for the West THE LIST OF PARCELS TO BE ACQUIRED AND Washington-Chapin Development Area and AUTHORIZING PUBLICATION OF THE NOTICE OF adding one or more parcels to the List of HEARING FOR THE CONFIRMING RESOLUTION. Parcels to be Acquired and authorizing (803 WEST WASHINGTON ST.) publication of the Notice of Hearing for the confirming resolution. (803 West Washington St.) F. South Side Development Area There was no business in the South Side Development Area. 24 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 6. NEW BUSINESS (CONT.) G. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. H. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. L Ratification of Services Contracts Commission Role in Service Contract Staff Transaction Contractor Provided Amount Member 913-915 W Indiana Acquisition Meridian Title Title Work $100 Relos Vacant Land (Data Acquisition Meridian Title Title Work $100 Relos Realty Parcel) 803 W. Washington Acquisition Meridian Title Title Work $100 Relos Mr. Downes requested a report on the strategic planning process Kitson Partners was to have done related to the long term feasibility of Blackthorn Golf Course. Staff said they would provide that. Upon a motion by Mr. Downes, seconded by Mr. COMMISSION RATIFIED THE SERVICES Alford and unanimously carried, the Commission CONTRACTS APPROVED BY STAFF SINCE APRIL ratified the Services Contracts approved by staff 12,2011 since April 12, 2011. 7. PROGRESS REPORTS There was no report. PROGRESS REPORTS 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Tuesday, May 10, 2011 at 4:00 p.m. 25 South Bend Redevelopment Commission Regular Meeting—April 26, 2011 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. Alford seconded the motion and the meeting was adjourned at 4:40 p.m. - 26