HomeMy WebLinkAbout05-10-11 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
May 10, 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
Ms. Nancy King, Secretary
Mr. Donald Alford
Ms. Stephanie Spivey
Members Absent: Ms. Marcia Jones, President
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
Ms. Rita Kopala
Ms. Linda Wolfson, Community Forum for Economic Dev
Mr. Beene Veen, Prairie Salvage
Ms. Tamara Nicholl-Smith, Downtown South Bend
Ms. Patti Lesniewicz, Economic Development
Ms. Mo Miller, Prism Science
Mr. Randy Rompola, Baker& Daniels
Mr. Jitin Kain„ Interim Executive Director, DTSB
Ms. Peg Dalton
Ms. Autumn Psaros, CB Richard Ellis
2. APPROVAL OF MINUTES
A. Approval of Minutes of the Regular Meeting of
Tuesday, April 26, 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 26,
approved the Minutes of the Regular Meeting of 2011.
Tuesday, April 26, 2011.
South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
3. APPROVAL OF CLAIMS
Redevelopment Commission Claims submitted May 10, 2011 for approval.
324 AIRPORT AEDA
Abonmarche 10,300.00 Mayflower Rd Sanitary Sewer
ARC 93.56 Trade Dr
DHA 8,782.00 Data Realty Site
Christopher B. Burke 483.00 236 Sample
Ken Herceg I&Associates 500.00 Sheridan Ave &Lincoln Way West Design
St. Joseph County Treasurer 16,983.18 2010 payment 2011 Property Taxes RC
Meridian Title Corporation 250.00 Appraisal & Search&Exam Fee
WITT Appraisal Services, Inc. 1,050.00 Russel George 1513 Chapin St. Appraisal of
Residential Property
Michael Appraisal Service 350.00 1518 S Scott Appraisal
Blue Water Inc 59,447.04 Ignition Park
Baker&Daniels 7,278.50 Ignition Park
Hathaway 2 Inc. 7,994.93 Ignition Park
420 FUND TIF DISTRICT-SBCDA GENERAL
NIPSCO 85.66 755 S Michigan St.
South Bend Water Works 591.54 LaSalle Hotel Pest Control
ARC 175.10 Cove Outfield Wall
Christopher B. Burke 19,535.00 Erskine Detention Construction Observation
Downtown South bend, Inc 18,625.00 Beautification Program
Indiana Michigan Power 114.90 329 Lafayette
Indiana Michigan Power 220.13 237 N Michigan St.
430 FUND SOUTH SIDE DEVELOPMENT TIF AREA 41
Lawson-Fisher Associates PC 36,994.32 South Main St to Lafayette Boulevard Connector
431 FUND SOUTH CENTRAL MEDICAL DISTRICT
Baker&Daniels 1,462.00 Legal Services
436 FUND NORTHWEST RESIDENTIAL
US Bank,N.A. 950.00 Admin/Paying Agent Fee
438 FUND COVELESKI BOND
J.E.M Morris Construction, Inc 197,006.25 Coveleski Stadium
$ 389,272.11
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
3. APPROVAL OF CLAIMS (CONT.)
Upon a motion by Mr. Downes, seconded by Mr. Alford COMMISSION APPROVED THE CLAIMS
and unanimously carried, the Commission approved the SUBMITTED MAY 10,2011,AND ORDERED
Claims submitted May 10, 2011, and ordered checks to CHECKS TO BE RELEASED.
be released.
4. COMMUNICATIONS
There were no Communications. THERE WERE NO COMMUNICATIONS
Mr. Inks asked that Item 6.A.(1) be moved up on the agenda
to be considered at this time. There was no objection and
the item was so moved.
6. NEW BUSINESS (CONT.)
A. South Bend Central Development Area
(1) Resolution No. 2874 continuing certain
funds and accounts in connection with the
Lease dated as of November 1, 1993, as
amended, between the South Bend
Redevelopment Commission and the
South Bend Authority for the College
Football Hall of Fame/Century Center
Project and other related matters.
Mr. Inks reported that the resolution before
the Commission is related to the refinancing
of the existing bonds with the Hall of Fame
and Century Center. We've tried to market
the Hall of Fame and find a new tenant for it.
In so doing, the current tax exempt bonds are
a stumbling block. We cannot put a for-profit
business in there with the tax exempt bonds
in place. Non-profit agencies may be eligible.
Refinancing of these two bonds would open
up our ability to negotiate with different
companies for the use of that building. The
refinancing would restructure the bonds from
tax exempt to taxable. The interest rate
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
6. NEW BUSINESS (CONT.)
A. South Bend Central Development Area
(1) continued...
environment now is very favorable. The rates
for taxable are lower today than the tax-
exempt rates were when we issued the bonds.
We hope this will be the case when the bonds
are actually sold. The Century Center bonds
are simply being refunded to achieve a lower
interest rate. In combining these two
refundings into one bond issue, we'll have a
Series A for the Hall of Fame and Series B
for Century Center. That should also result
in some cost savings by sharing the issuance
costs. Resolution No. 2874 recognizes that
transaction as moving ahead and the lease the
Commission has between us and the
Redevelopment Authority for those two
facilities will need to be amended based on
the new payment schedule for the bonds that
will be issued.
Mr. Randy Rompola of Baker& Daniels
added that the resolution also then continues
the funds and accounts that are in place for
the Century Center bonds and the Hall of
Fame bonds so that we have revenue streams
in place to pay those bonds. There has been a
tax rate in place on the Hall of Fame bonds
on the levy and this resolution just continues
the course.
Mr. Inks noted that the maturity dates on the
bonds are not being changed, but are the
original maturity dates: 2018 on both bonds.
There are no additional funds being
generated. This is a straight forward
refunding where the savings will be realized
in lower payments on the bonds.
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
6. NEW BUSINESS (CONT.)
A. South Bend Central Development Area
(1) continued...
Mr. Varner asked what interest rate was
expected for the bonds. Mr. Rompola
responded that the the rates are expected to
be between three and four percent for
Century Center and four and five percent for
the Hall of Fame, subject to the bond market
at the time of sale.
Mr. Downes disclosed that he is a Century
Center Board member. He does not believe
that constitutes a conflict of interest. Mr.
Meteiver agreed that is not.
Upon a motion by Ms. King, seconded by COMMISSION APPROVED RESOLUTION No.2874
Mr. Downes and unanimously carried, the CONTINUING CERTAIN FUNDS AND ACCOUNTS IN
Commission approved Resolution No. 2874 CONNECTION WITH THE LEASE DATED AS OF
NOVEMBER 1, 1993,AS AMENDED,BETWEEN
continuing certain funds and accounts in THE SOUTH BEND REDEVELOPMENT
connection with the Lease dated as of COMMISSION AND THE SOUTH BEND AUTHORITY
November 1, 1993, as amended, between the FOR THE COLLEGE FOOTBALL HALL OF
South Bend Redevelopment Commission and FAME/CENTURY CENTER PROJECT AND OTHER
the South Bend Authority for the College RELATED MATTERS.
Football Hall of Fame/Century Center
Project and other related matters.
5. OLD BUSINESS
A. 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 the
Commission approved the offering price for
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
5. OLD BUSINESS (CONT.)
A. Airport Economic Development Area
(1) continued...
this property at $63,950, which is the average
value as determined by two independent
appraisals. He distributed maps showing
where Prairie Salvage is located , where the
Commission currently owns property nearby,
and nearby properties that staff is in the
process of negotiating for and anticipates
acquiring.
The owners of Prairie Salvage have made a
counter offer of$104,000. They feel this
value is more appropriate for their long
standing business location, which includes
three parcels of land:
- a 922 square feet house in good condition
with full basement
- 7,200 square feet of various retail and
storage buildings.
Land value alone for these properties is
$32,000.
In addition to the acquisition price of
$104,000 for this property, relocation and
moving expenses of$246,000 are needed:
Mr. Relos said that $246,000 for relocation
and moving expenses may seem high, but
there is a lot of equipment, shelving and
upholstery fabric to be moved and set up:
- $65,000 to move large amounts of fabric,
equipment, shelving, and its set up at the new
location
-$181,000 to acquire and remodel the new
location on State Road 2 just west of town
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
5. OLD BUSINESS (CONT.)
A. Airport Economic Development Area
(1) continued...
(the old Jeep Acres property).
Staff feels the total acquisition, relocation,
and moving costs of$350,000 for this
property is reasonable, and asks for approval
of Resolution No. 2872 accepting the counter
offer of$104,000 and approving relocation
expenses of$246,000.
Ms. King inquired as to whether the new
property was within the City of South Bend.
Mr. Relos responded that it is just outside of
the city. Ms. King also asked what the cost
was of the new buildings. Mr. Relos noted
the cost is $285,000 or $290,000. The
property contains a house as did the Prairie
Salvage location. The building space is
approximately 10,000 sq. ft. They currently
have 7,000 sq. ft. The clarifications was
made that the city is paying Prairie Salvage
$104,000 towards the purchase of the new
property.
Mr. Downes asked when Prairie Salvage was
added to the acquisition list. Mr. Relos
responded that it was May 21, 2010, when
we added the properties along the north side
of Indiana from Taylor to Prairie.
Mr. Inks added that when we applied for the
Certified Technolgy Park with the State, we
told them that we were in the process of
acquiring property on the north side of
Indiana and also to the east of Franklin
Street. The tech park agreement provides
that once the Commission acquires,
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
5. OLD BUSINESS (CONT.)
A. Airport Economic Development Area
(1) continued...
demolishes and owns that property that the
State will agree that those can be brought
into the tech park.
Ms. King asked if the area that we're looking
at now is it being used for the tech-park or
complimentary businesses. Mr. Relos
answered yes it will eventually be part of the
tech park, but everything south of the tracks
was envisioned as being for supporting
services to the tech-park. That one block
strip north of Indiana Avenue has always
been weak residential dating back to the Rum
Village study done in 1985. The idea is to
clean up the north side and stabilize the south
side of Indiana and the Rum Village
neighborhood to the south. Acquisition of
the north side of Indiana would also allow us
to expand Ignition Park from 85acres to
closer to 140 acres.
Ms. King questioned how often we relocate
businesses outside of the city? Mr. Relos
responded that we certainly try not to, but
there have been some relocations that are
outside South Bend. He gave Discount
Rentals from Sample Street which
consolidated its operation to its Mishawaka
property when we relocated them.
The owners of Prairie Salvage live in
Michigan City and travel to South Bend
every day. They thought the location on
State Road 2 would be ideal.
Ms. King asks if we've looked inside the
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
5. OLD BUSINESS (CONT.)
A. Airport Economic Development Area
(1) continued...
City for relocation of this property. Mr.
Relos stated that the Economic Development
office has not. We leave that up to the
business to find a location that fits their
needs. We hope it's inside the city limits.
Mr. Downes added that he also has a problem
with the relocation outside of the city limits.
He is not convinced that a good faith effort
has been made to relocate this business
within the City of South Bend. He has no
problem at all with acquiring this property
and paying the costs to relocate them but
does have a problem if it's not in the city
limits, and there's not been a good faith
effort to find a suitable place within the city
limits. We are the Redevelopment
Commission for the City of South Bend.
We're not the Redevelopment Commission
of St. Joseph County.
Mr. Varner agreed and said he disagrees that
it is necessary to acquire the property at this
time. He would like to leave the property as
it is until more development occurs in
Ignition Park and this property is bought
privately.
Mr. Relos noted the uniqueness of the
property in that it contains a house and a
business and the owners needs to find
property with a home to go along with it.
Ms. King agrees with Mr. Downes. She
doesn't have a problem with relocating the
business but is concerned about them
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
5. OLD BUSINESS (CONT.)
A. Airport Economic Development Area
(1) continued...
relocating outside the City of South Bend.
Mr. Varner asked what the house is used for
now. Mr. Relos responded that it is used for
a disabled brother. But the owners also have
a house in Michigan City. They want to
move here so they don't have to commute
back and forth.
Mr. Downes inquired whether the house has
to be on the same exact grounds. Mr. Relos
responded that it does not.
Ms. Spivey wanted to be on record that she
agrees with Mr. Downes and Ms. King that
we should try to relocate them in South
Bend.
Upon a motion by Mr. Downes, seconded by COMMISSION TABLED RESOLUTION No.2872 TO
Ms. King and unanimously carried, the GIVE STAFF TIME TO LOOK FOR A LOCATION
Commission tabled Resolution No. 2872 to WITHIN SOUTH BEND CITY LIMITS FOR PRAIRIE
SALVAGE
give staff time to look for a location within
South Bend city limits for Prairie Salvage.
6. NEW BUSINESS
(2) Proposal for demolition and site
reconstruction of 306 W. Monroe Street
(Michiana Lock& Key)
Mr. Schalliol noted that staff solicited a
multi-step professional service proposal with
five components related to demolition and
site reconstruction of the former Michiana
Lock& Key property. Michiana Lock&
Key is moving to E. Jefferson St. in the East
Bank. The City of South Bend wants to be as
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
6. NEW BUSINESS (CONT.)
A. South Bend Central Development Area
(2) continued...
pro-active as possible with the demolition.
As soon as Michiana Lock& Key are out, we
want to tear it down. Some environmental
assessment and geo-site testing needs to be
done to ready the site for reconstruction as
part of the Coveleski Stadium redesign. .
The local rumor is that there is a train car
buried under the parking lot of Michiana
Lock& Key. If there is, then some testing
needs to be done to better understand what's
there.
Wightman Petrie submitted a proposal in the
amount of$13,500. Staff request approval of
a non-to-exceed amount of$15,000 in case
there are unforeseen expenses
Upon a motion by Ms. King, seconded by COMMISSION APPROVED PROPOSAL FROM
Mr. Downes and unanimously carried, the WIGHTMAN PETRIE FOR ENVIRONMENTAL
Commission approved proposal from ASSESSMENT AND GEO-SITE TESTING OF
Wightman Petrie for environmental 306 W.MONROE STREET FOR AN AMOUNT
assessment and geo-site testing of 306 W. NOT TO EXCEED$15,000. (MICHIANA LOCK
Monroe Street for an amount not to exceed &KEY)
$15,000. (Michiana Lock& Key).
(3) Notice of Renewal of Agreement with
Robert Bradley Associates, LLC c/b/a CB
Richard Ellis Bradley for management of
the Redevelopment Retail properties.
Ms. Jennings noted that the initial property
management agreement with CB Richard
Ellis for managing the Commission's
redevelopment retail properties authorizes
successive one-year renewals of the
agreement. This renewal begins February 1,
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
6. NEW BUSINESS (CONT.)
A. South Bend Central Development Area
(3) continued...
2011, and ends January 31, 2012, and has
the same terms as the initial agreement: 117
E. Wayne St., $200 per month or 5% of the
gross revenues, whichever is greater; 118-
131 S. Michigan St. is $625 per month or
$5% of the gross revenues collected,
whichever is greater; Leighton Plaza
Courtyard at 130 S. Main St. will be a flat
$75 per month, and an 8% fee for the leasing
agent. Staff recommends approval of the
agreement.
Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED NOTICE OF RENEWAL
Mr. Alford and unanimously carried, the OF AGREEMENT WITH ROBERT BRADLEY
Commission approved Notice of Renewal of ASSOCIATES,LLC C/B/A CB RICHARD ELLIS
BRADLEY FOR MANAGEMENT OF THE
Agreement with Robert Bradley Associates, REDEVELOPMENT RETAIL PROPERTIES.
LLC c/b/a CB Richard Ellis Bradley for
management of the Redevelopment Retail
properties.
(4) Fourth Amendment of Lease between the
South Bend Redevelopment Commission
and LePeep, Inc. dated May 10, 2011.
Ms. Jennings noted the LePeep lease expires
October 31, 2012. However, as part of a
partner buy-out, a five-year lease must be
executed which would go through
October 31, 2017. Terms will remain the
same except for the annual base rent of
$24,000 and will end with the annual base
rent of$36,000. Ms. King asked amount of
current rent and Ms. Jennings responded
$2,500 per month.
Mr. Inks noted that in the early years of this
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
6. NEW BUSINESS (CONT.)
A. South Bend Central Development Area
(4) continued...
lease there is a decrease from what they are
currently paying (a$500 decrease per month
for the first year). At the end of the term of
this lease the monthly rent would increase by
$1,000. Staff recommends approval.
Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE FOURTH
Ms. King and unanimously carried, the AMENDMENT OF LEASE BETWEEN THE SOUTH
Commission approved the Fourth BEND REDEVELOPMENT COMMISSION AND
amendment of Lease between the South LEPEEP,INC.DATED MAY 10,2011
Bend Redevelopment Commission and
LePeep, Inc. dated May 10, 2011
(5) Assignment of Lease by Lessee (127 S.
Michigan Street, LePeep of South Bend,
LLC to 1st Source Bank)
Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE ASSIGNMENT OF
Ms. King and unanimously carried the LEASE BY LESSEE(127 S.MICHIGAN STREET,
Commission approved the Assignment of LEPEEP OF SOUTH BEND,LLC TO 1sT SOURCE
Lease by Lessee (127 S. Michigan Street BANK
LePeep of South Bend, LLC to 1st Source
Bank)
(6) Disclaimer and Waiver of Real Estate
Interest (127 S. Michigan Street, LePeep)
Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE DISCLAIMER AND
Ms. King and unanimously carried, the WAIVER OF REAL ESTATE INTEREST(127 S.
Commission approved the Disclaimer and MICHIGAN STREET,LEPEEP)
Waiver of Real Estate Interest(127 S.
Michigan Street, LePeep)
(7) Lease proposal for Imagine That (Holiday
Pop-Up Program Participant)
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
6. NEW BUSINESS (CONT.)
A. South Bend Central Development Area
(7) continued...
Mr. Inks noted that the Commission has
vacancies in its retail space. Staff is trying to
be creative in structuring some things to
minimize our out-of-pocket costs over the
next year.
Ms. Nicholl-Smith noted that staff in the
Community and Economic Development
Department has reviewed the lease situation
for 117 S. Michigan Street and is
recommending the following:
- 117 S. Michigan is a 1,106 SFT storefront
that has not been rented since the
Dhanwantari Yoga place moved out. The
asking price for storefronts in the Michigan
Street Shops building is $11.00 per square
foot, plus CAM of$4.92/SF for a total PSF
price of$16 plus utilities, however the most
recent lease for 131 S. Michigan was signed
at a reduced rate of$4.49 SF for rent plus
$4.92 in CAM for a total of$9.41/SF.
- The building currently has 3 unrented
spaces 123, 121, and 117 S. Michigan.
Regardless of whether or not 117 S.
Michigan is occupied, the city has a fixed
cost equal to the CAM $4.92 PSF x 1,106 =
$5,441.52 per year or $453.46 per month).
The proposal below promises to, at the very
least, cover the fixed expenses of the
building and works towards doing more than
this by the end of the lease term.
Imagine That is a Holiday Pop-Up Shop that
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
was fairly well received over the holidays
6. NEW BUSINESS (CONT.)
A. South Bend Central Development Area
(7) continued...
shopping period. The owner is ready for a
next small step, but not a full blown lease.
As soon as she knows she's here then she
will be able to pull the trigger on some
partnerships that she's been working in the
background. Staff thinks some income from
the property is better than none.
Assumptions:
- The building owner will need to pay the
fixed costs regardless of whether or not the
space is occupied
- The goal of the building owner, is not only
to make money on the building, but also to
help enliven the downtown by bringing the
types of businesses that are in line with the
retail plan for downtown
- The downtown is better off with Imagine
That! in the space than without them in the
space
- Even at paying utilities and 10%, Imagine
That! Will need to reach a certain sales
threshold to make this venture a profitable
one for their business. In this way, the
interests of the property owner and the
business owner are tied together.
The Proposal:
- The terms of this proposed lease are 12
months.
- The proposed start date is June 1, 2011
Imagine That! will pay all the utilities on the
space
- Imagine That! will pay 10% of their gross
sales, or a minimum of$453.46 per month to
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
be phased in over the first few months of
6. NEW BUSINESS (CONT.)
A. South Bend Central Development Area
(7) continued...
their lease as follows:
Month(s) The greater of 10%
of gross sales, or a
minimum of-
1 $150
2 $200
3 $250
4 $300
5 $400
6-12 $453.46
This 10% of total sales will be considered
rent and CAM. There will be no cap, thus
while the property owner takes a risk on the
low end, the business owner takes a risk on
the high end.
Imagine That! agrees that based on a 6 day
week, they will work to achieve the
following sales goals:
- $200 per day or $4,800 per month by the
end of the 1st six months of the lease term
(This will cover the fixed cost of the CAM of
453.46 as the payments would reach $480)
- $300 per day or $7,200 per month by the
end of the 2nd six months of the lease term.
(This will cover the fixed cost of the CAM of
453.46 as the payments would reach $720)
Imagine That! Has the option to terminate the
lease at any point with a written letter and
30-day notice.
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
The Commission would have the option to
6. NEW BUSINESS (CONT.)
A. South Bend Central Development Area
(7) continued...
terminate the lease with a written letter and
30-day notice if
- Imagine That! falls short of their sales goals
for an extended period of time, or
- The broker is able to first fill at least one of
the two larger available spaces (121 or 123 S.
Michigan) and then is able to produce a
tenant for 117 S. Michigan who has signed a
2-year lease at a rate higher than the Imagine
That! Agreement and put a deposit down.
At the end of the 12 month term, Imagine
That! will have the option to continue their
lease term at terms no less than the terms for
the lease for 131 S. Michigan Street' for a
period of one year.
Staff seeks approval from the Redevelopment
Commission to work through the details of a
12-month lease based upon the above
proposal.
Mr. Varner asked whether their rent per
square foot was going to be cheaper than
what other shops are paying on Michigan
Street. Ms. Nicholl-Smith responded that it
will. However, she believes the presence of
retail helps other retail She did speak with
Bombay International and their response was
to do what it takes to get Imagine That! in.
Upon a motion by Ms. King, seconded by COMMISSION APPROVED LEASE PROPOSAL FOR
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
Mr. Downes and unanimously carried, the IMAGINE THAT(HOLIDAY POP-UP PROGRAM
6. NEW BUSINESS (CONT.) PARTICIPANT).
A. South Bend Central Development Area
(7) continued...
Commission approved the lease proposal for
Imagine That (Holiday Pop-Up Program
Participant).
B. Airport Economic Development Area
(1) Additional relocation costs related to
Sinco Pool.
Mr. Relos noted that there are additional
expenses related to the relocation of Sinco
Pool from East Sample to the corner of South
Michigan and Dayton Streets as part of the
Ivy Tech expansion plan.
The owner used great care to only include
items for his relocation he thought he would
need. While going through the process of
getting the needed permits for his relocation,
the Fire Department raised issues with the
chemicals he uses. Because the department
could not explicitly tell him what issues
needed to be dealt with, he had to hire an
outside firm to sort through the state and
local regulations. In addition, he was
required to install additional items not
originally planned, including fire suppression
and monitoring equipment. These
requirements have substantially hindered
Sinco's move to its new location, and have
cost Sinco $6,884 in extra costs. Under our
relocation policy, these costs could have been
included in the amount paid.
Staff believes Sinco put forth their best
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
efforts in estimating the amount needed to
6. NEW BUSINESS (CONT.)
B. Airport Economic Development Area
(1) continued...
relocate, and requests approval of these
minimal additional costs.
Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED ADDITIONAL
Ms. King and unanimously carried, the RELOCATION COSTS IN THE AMOUNT OF$6884
Commission approved additional relocation TO SINCO POOL
costs in the amount of$6884 to Sinco Pool.
(2) Authorization to hire expert witness for
Studebaker Insurance Recovery Litigation
Mr. Inks noted that two expert witnesses are
needed for the Studebaker Insurance
Recovery Litigation. Plews Shadley Racher
& Braun, the consultants the city has hired to
pursue some of the environmental issues in
Studebaker Corridor, has identified two
consultants to be hired as witnesses at a cost
not to exceed $55,000. Staff recommends
authorizing their hiring so that we can
continue to pursue our environmental claim
against the former owners of the property.
Upon a motion by Mr. Downes, seconded by COMMISSION AUTHORIZED THE HIRING OF
Ms. King and unanimously carried, the EXPERT WITNESS FOR STUDEBAKER INSURANCE
Commission authorized the hiring of expert RECOVERY LITIGATION
witness for Studebaker Insurance Recovery
Litigation.
C. West Washington-Chapin Development Area
There was no business in the West Washington-
Chapin Development Area.
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
6. NEW BUSINESS (CONT.)
D. South Side Development Area
(1) Resolution No. 2873 approving and
authorizing the execution of an
amendment to the Addendum to the
Master Agency Agreement (Main-
Lafayette Connector Design Project—
Supplement #2)
Mr. Schalliol noted that the Commission
approved Resolution No. 2838 in February
2011 authorizing right-or-way acquisition for
the Main-Lafayette Connector project.
Subsequent to that approval, the scope of the
state law changed and the scope of the
project changed. We will now be acquiring
only three parcels, not seven, but will need
an additional person on the team, at a cost of
$18,900. However, the total cost for the
project will be less. Staff requests approval
of Resolution No. 2873 and Supplement#2
to the Main-Lafayette Connector project.
Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2873
Ms. King and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION
Commission approved Resolution No. 2873 OF AN AMENDMENT TO THE ADDENDUM TO THE
MASTER AGENCY AGREEMENT(MAIN-
approving and authorizing the execution of LAFAYETTE CONNECTOR DESIGN PROJECT-
an amendment to the Addendum to the SUPPLEMENT#2).
Master Agency Agreement (Main-Lafayette
Connector Design Project— Supplement#2).
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
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
Economic Development Area.
6. NEW BUSINESS (CONT.)
G. Other
(1) Extension and Expansion Addendum to
Agreement for programs and services with
Urban Enterprise Association of South
Bend, Inc. (Facade matching grant
program) (Western Avenue, Miami Street
and Lincolnway West).
Mr. Inks noted that there is an opportunity to
do a Facade Grant on Lincolnway West to
facilitate the expansion of a local business.
The Miami Street and Western Avenue
Facade Grant programs have about $41,000
remaining. The Urban Enterprise
Association is requesting the money be
moved from those areas to Lincolnway West
to facilitate the project there. These are
remaining funds from a program that was
funded on an annual basis through the city's
budget but in the last two or three years it has
not received any funding they are not
anticipated to be needed by the respective
facade grant programs. These are remainder
funds we are trying to use up and we think
we have a good project on Lincolnway and
we want to use the money there.
Ms. Spivey asked where the UEA receives its
funding. Mr. Inks replied that UEA has at
least two funding sources; the money they
generate themselves (local beneficiaries) and
the City of South Bend funds that flow
through the Redevelopment Commission to
the UEA. And it is those funds that came
through the Commission that we're talking
about today ($41,000).
Mr. Varner asked if UEA administered the
21
South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
program and is it who is asking to move the
6. NEW BUSINESS (CONT.)
G. Other
(1) continued...
funds to the Lincolnway program. Mr. Inks
responded yes. Gene's Camera Shop has the
opportunity to expand its site and this would
help with that expansion.
Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE EXTENSION AND
Ms. King and unanimously carried, the EXPANSION ADDENDUM To AGREEMENT FOR
Commission approved the Extension and PROGRAMS AND SERVICES WITH URBAN
ENTERPRISE ASSOCIATION OF SOUTH BEND,INC.
Expansion Addendum to Agreement for (FACADE MATCHING GRANT PROGRAM)
programs and services with Urban Enterprise (WESTERN AVENUE,MIAMI STREET AND
Association of South Bend, Inc. (Facade LINCOENWAY WEST).
matching grant program) (Western Avenue,
Miami Street and Lincolnway West).
H. Ratification of Service Contracts
Commission
Role in Service Contract Staff
Transaction Contractor Provided Amount Member
1518 S Chapin Acquisition Michaels Appraisal $350 Relos
Appraisal
Services
1518 S Chapin Acquisition WittAppraisal Appraisal $350 Relos
Services
1513 S Chapin Acquisition Witt Appraisal Appraisal $350 Relos
Services
1513 S Chapin Acquisition Michaels Appraisal $350 Relos
Appraisal
Services
1518 S Chapin Acquisition Meridian Title Appraisal $150 Relos
Corp
Vacant city block Disposition R.E. Pitts Appraisal $1,950 Sikora
bounded by Taylor,
Wayne, Western&
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South Bend Redevelopment Commission
Regular Meeting—May 10, 2011
1 William I I I I 1 1
6. NEW BUSINESS (CONT.)
H. Ratification of Services Contracts continued...
Vacant city block Disposition David Waszak Appraisal $2,190 Sikora
bounded by Taylor, Appraisals
Wayne, Western&
William
502 Western Ave Disposition R.E. Pitts Appraisal $1,650 Sikora
502 Western Ave Disposition R.E. Pitts Appraisal $2,190 Sikora
921 N Bendix Acquisition Abonmarche Survey $1,680 Sikora
Upon a motion by Mr. Downes, seconded by Ms. COMMISSION RATIFIED THE SERVICES
King and unanimously carried, the Commission CONTRACTS APPROVED BY STAFF SINCE APRIL
ratified the Services Contracts approved by staff 26,2011.
since April 26, 2011.
I. Temporary Use Agreements
Use/Agency Lot Event Dates of Use
Urban Garden Market Vacant lot at 1025 Open-Air Saturdays, June 11-
Bendix Dr Farmers' Market October 22, 2011,
8:00 a.m., to 2:00 p.m.
The Public Education 121 South St. Our Towne September 24, 2011,
Foundation Joseph Street Truck Pull 8:00 a.m. — 6:00 p.m.
Upon a motion by Mr. Downes, seconded by Ms. COMMISSION APPROVED THE TEMPORARY USE
King and unanimously Carried, the Commission AGREEMENTS.
approved the Temporary Use Agreements.
7. PROGRESS REPORTS
There was no report. PROGRESS REPORTS
8. NEXT COMMISSION MEETING
The next Regular Meeting of the Redevelopment NEXT COMMISSION MEETING
Commission is scheduled for Tuesday, May 24, 2011, at
4:00 p.m.
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South Bend Redevelopment Commission
Regular Meeting—May 10, 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. Ms. King
seconded the motion and the meeting was adjourned at
4:48 p.m.
tj
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