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HomeMy WebLinkAbout05-24-11 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING May 24, 2011 4:00 p.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Dr. David Varner,Vice President Ms.Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Ms. Stephanie Spivey Legal Counsel: Mr. Charles S. Leone,Esq. Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Jeffrey Gibney, Executive Director Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, 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 Ms. Rita Kopala Ms. Linda Wolfson, Community Forum for Economic Dev Ms. Mo Miller, Prism Science Ms. Patti Lesniewicz, Economic Development Ms. Tamara Nicholl-Smith,Downtown South Bend Mr. Jeff Parrott, South Bend Tribune Ms. Christina Gerken Ms. Geri Hathaway, Hathaway2, Inc. Ms. Catherine Toppel, Director, Code Enforcement Mr. Gary Libby,Animal Care &Control Mr. Mark Seaman, Prism Science Ms. Autumn Psaros, CB Richard Ellis Mr. Jonathon Burke, Energy Director Mr. Don Reinke Ms. Valerie Schey, CARE South Bend Redevelopment Commission Regular Meeting—May 24, 2011 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Tuesday,May 10,2011. Upon a motion by Mr. Downes, seconded by Mr. COMMISSION APPROVED THE MINUTES OF THE Varner and unanimously carried,the Commission REGULAR MEETING OF TUESDAY,MAY 10, approved the Minutes of the Regular Meeting of 2011 Tuesday, May 10, 2011. 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted May 24, 2011 for approval. 305 FUND SBCDA BOND Wightman Petrie 35,394.50 Coveleski Stadium ADG 2,100.00 Island Park Pavilion Abonmarche 2,854.00 Jefferson Blvd & Niles Ave Streetscape Modernization 324 AIRPORT AEDA Sinco Pools 6,884.00 Additional Relocation Costs Indiana Michigan Power 7.00 501 Wenger St. South Bend Tribune 184.94 Tri County News 117.24 ACM 3,915.00 Asbestos Inspections Big C Lumber 348.50 329 Lafayette Sopko, Nussbaum, Inabnit& Kaczmarek 3,600.00 Legal Services DHA 37,667.00 Engineering Plans& Services ADG 725.00 Clubhouse Relocation Plews Shadley Racher& Braun LLP 343.89 Oliver Plow Works Cost Recovery Tuck Langland 45,000.00 Oliver Memorial Sculpture Ritschard Bros. Inc 3,474.45 Demolition of 604 Scott St. DHA Oliver Trail System along Oliver Plow 1,996.00 Court/United Dr Christopher B Burke 6,265.75 1505 Prairie Ave Ken Herceg&Associates, Inc. Sheridan Ave& Lincoln Way West 32,176.87 Design Fossil Industries 348.00 C& E Excavating 73,292.30 Trade Dr Dore&Associates Contracting 188,453.79 Studebaker Area A Demolition Ph IV Michaels Appraisal Service 700.00 1513 & 1518 Chapin DHA 6,400.00 Data Realty Site Meridan Title Corporation 271,073.50 Olive Road Extension 2 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 3. APPROVAL OF CLAIMS(CONT.) 420 FUND TIF DISTRICT-SBCDA GENERAL Sopko, Nussbaum, Inabnit& Kaczmarek 1,486.30 Legal Services NIPSCO 32.10 329 S. Lafayette Blvd 1st Source Bank 10,700.00 Parking Garage Ampco System Parking 2,103.16 225 Main St/St.Joe Street Surface Michaels Appraisal Services 6,000.00 Indiana Electric Power 8.00 325 S. Lafayette Blvd CB Richard Ellis 835.03 General Maint& Management Fee LaSalle Hotel Indiana Electric Power 8.75 755 S Michigan St. ARC 175.10 Trade Dr NIPSCO 45.36 755 S Michigan St. Tri County News 52.94 Notice to Bidders South Bend Tribune 93.92 Notice to Bidders Rose Pest Solutions 96.00 LaSalle Hotel Pest Control Enyart Electric Motor Repair, Inc. 9,189.45 Remove Morris fountain & motor CB Richard Ellis 716.38 March Management Fee Morris& Sons Roofing, Inc. 675.00 Roofing Repairs Michiana Lock& Key Inc. 248.15 LaSalle Hotel Rim/Cylinder Rekeyed CB Richard Ellis 286.00 LaSalle Hotel Outside Window Wightman Petrie 362.50 Fred's Transmission &Clutch South Bend Water Works 35.91 325 S Lafayette Blvd 422 FUND WEST WASHINGTON Meridian Title Corporation 100.00 803 W Washington St. R.E. Ptitts &Associates, Inc. 1,845.00 601-605 W Washington St Michaels Appraisal Services 1,800.00 601-605 W Washington St 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT Walsh & Kelly, Inc 91,610.32 Memorial Hospital Streetscape Improvements 430 FUND SOUTH SIDE DEVELOPMENTTIF AREA#1 Christopher B Burke 20,913.00 Fellows St Corridor Improvement Christopher B Burke Erskine Detention Construction 17,051.25 Observation Christopher B Burke 3,978.00 1505 Prairie Ave Christopher B Burke 792.01 748 Hawbaker&4215 Main St. C& E Excavating, Inc. 56,967.41 Erskine Detention Pond Lawson-Fisher Associates, P.C. 51,909.09 South Main St./Lafayette Blvd 3 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 3. APPROVAL OF CLAIMS(CONT.) 431 FUND SOUTH CENTRAL MEDICAL DISTRICT Sopko, Nussbaum, Inabnit& Kaczmarek 3,600.00 Legal Services 438 FUND COVELESKI BOND J.E.M Morris Construction, Inc 672,843.75 Coveleski Stadium Ziolkowski Construction, Inc. 153,605.70 Coveleski Stadium Improvements Larson-Danielson Construction Inc. 601,999.57 Coveleski Stadium Daktronics, Inc 47,634.00 Coveleski Stadium Scoreboard $ 2,483,120.88 Upon a motion by Ms. King, seconded by Mr. Downes COMMISSION APPROVED THE CLAIMS and unanimously carried,the Commission approved the SUBMITTED MAY 24,2011,AND ORDERED Claims submitted May 24, 2011, and ordered checks to CHECKS TO BE RELEASED. be released. 4. COMMUNICATIONS A. Communication from South Bend Common Council regarding proposed additional funds for animal shelter at 521 Eclipse Place. Mr. Inks noted that two communications were received related to the proposed animal shelter. The first was from seven members of the Common Council. Mr. Inks summarized the following letter at the meeting,which letter is included below in its entirety. May 25, 2011 COMMUNICATION FROM SOUTH BEND COMMON COUNCIL Marcia I Jones, President Dr. David Varner, Vice-President Nancy King, Secretary Gregory Downes, Member Donald Alford, Member Stephanie Spivey, School Board Representative Redevelopment Commission 1200 County-City Building 227 West Jefferson Boulevard South Bend, Indiana 46601 4 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 4. COMMUNICATIONS (CONT.) A. continued... HAND-DELIVERED Re:South Bend Redevelopment Commission Agenda Item 6.C. Airport Economic Development Area (4)Request from Code Enforcement for Additional Funds For Construction ofAnimal Shelter at 521 Eclipse Place Dear Honorable Redevelopment Commission Members: In yesterday's front page article in the South Bend Tribune, we read for the first time, that the "soft costs, such as architect and engineering fees, landscaping, the parking lot and furniture and equipment"for the proposed animal shelter were not included in the$1.5 million TIF dollar appropriation, which you unanimously approved for this project in February of 2010. The undersigned members of the South Bend Common Council respectfully request that the Redevelopment Commission table today's requests for an additional$300,000 of TIF dollars for this project. We recognize that under Indiana state law, the Redevelopment Commission is charged with overseeing TIF dollars. However, in light of very difficult economic challenges facing all of us, we believe that all alternatives should be considered before approving additional funds for the proposed animal shelter. Exploring other alternatives we believe would be the prudent thing to do, especially since the proposed construction of the animal shelter was to 5 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 4. COMMUNICATIONS (CONT.) A. continued... be completed by December 2010. When the Board of Public Works opened bids in June 2010, the bids came in over budget and were rejected. Since then, the plans were reviewed in order to seek greater energy efficiencies. In light of the 3rd phase of the St. Joseph County Humane Society's 22,000 square foot building being worked on, we believe that discussions with that organization would be appropriate. Consolidation of duplicate services, especially those paid with tax dollars, is a viable and feasible goal. There is no doubt that our community needs quality animal care and control services, as well as a facility to house these animals. We ask that the Redevelopment Commission accept the challenge to work together with the Council in addressing this need, so that the fiscal concerns of the South Bend residents receive top priority. We further request that this letter to read into the record at today's Redevelopment Commission meeting. The Common Council extends an invitation to meet with you at your earliest possible convenience to discuss this important community issue in greater detail. Thank you for your consideration. Most sincerely, Thomas LaFountain 3r`i District Council Al "Buddy"Kirsits Council Member at Large 6 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 4. COMMUNICATIONS (CONT.) A. continued... Ann Puzzello 4th District Council Timothy A. Rouse Council Member at Large Dr. David Varner 5th District Council Karen L. White Council Member at Large Oliver J. Davis 6th District Council B. Communication from Community Animal Rescue Effort(CARE) Mr. Inks noted that the Commission received the following letter from CARE in support of funding the additional expenses for the animal shelter. May 24, 2011 Dear Ms. Jones, Dr. Varner and members of the South Bend Redevelopment Commission: I am writing to express my support of the request for an additional$300,000 from the Airport Economic TIF Fund for the construction of the new South Bend Animal Care and Control(SBA CC) facility. Every year, the staff at the SBACC Shelter manages over 4,000 animals. The officers, who are available 2417, 365 days of the year, do their best to answer all calls regarding stray animals, lost animals, abused animals and neglected 7 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 4. COMMUNICATIONS (CONT.) B. continued... animals. The kennel staff, that is available 7 days a week,year round, does its best to provide compassionate care for all the animals that find their temporary home at the shelter. Unfortunately,for the staff and for the animals, the current facility is extremely inadequate for the work that they do. Since we presented the project to you on February 19, 2010, there have been a number of issues that have impacted our progress on this project. The first delay came when the original bids for the project came in over budget. As a result, the bid specifications needed to be reviewed and revised in order to accommodate this issue. Next, the city's increased commitment to Leadership in Environmental Energy and Design, or LEED standards, required that we review and revise many of the building specifications. Sadly,for us and for the animals, these delays increased our soft costs (i.e., architectural and engineering fees). These delays bring us to today and the request you have before you. As a South Bend taxpayer, I appreciate the oversight and scrutiny your committee applies to these requests. We all need to be responsible stewards of the city's resources. The reasons I hope you will be compelled to support this request for additional funding are as follows: 1. SBACC manages over 4,000 animals each year. Due to the severely limited holding space in the current facility, we are faced with having to euthanize approximately 65%of those animals every year. Many of these animals are healthy, adoptable animals that we simply can no longer hold. 8 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 4. COMMUNICATIONS (CONT.) B. continued... 2. SBACC welcomes thousands of visitors every year. Sadly for our handicap visitors, our building is not handicap accessible. 3. SBACC has several structural issues as a result of its age. For example, the building has appalling drainage problems due to the aging plumbing. 4. Another issue with the building is the lack of adequate ventilation and airflow. Airflow and ventilation become a particular problem when there are sick animals in the shelter. Many of the common pathogens that affect animals are airborne pathogens. Without adequate airflow and/or the space to quarantine sick animals, diseases spread rapidly throughout the building. I respectfully ask for your support today to help make South Bend a model city for animal welfare: a city that can balance safety in our neighborhoods while providing humane treatment of animals. Our goals for the new shelter are: L Increase adoptions and reduce euthanasia by offering the best care for our animals and people. 2. Reduce stress to keep our animals healthier, happier and more adoptable. 3. Prevent disease to keep our animals from getting sick, thereby reducing euthanasia. 4. Create warm and welcoming facilities to provide the best customer service possible and bring in more potential adopters. 5. Allow more opportunities for socialization between people and animals so they can bond more quickly, thereby increasing adoptions. 6. Focus on education and prevention to address the root causes of animal abuse, homelessness, abandonment and overpopulation. 7. Create a more efficient and healthy work space 9 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 4. COMMUNICATIONS (CONT.) B. continued... so we can do our work more effectively. 8. Become a better neighbor by being quieter, more aesthetically pleasing, and more environmentally friendly. Thank you for your time and consideration of my request. Sincerely, Valerie Schey Founder and President CARE of South Bend Mr. Inks suggested moving item 6.C.(4)up on the agenda to consider it at this time. It is the subject of these two Communications. There was no objection and the item was moved. 6. NEW BUSINESS C. Airport Economic Development Area (4) Request from Code Enforcement for additional funds for construction of Animal Shelter at 521 Eclipse Place Mr. Downes said he believes that any decision about privatizing the services of animal control is the responsibility of the Mayor,his administration and the Common Council,not the responsibility of the Redevelopment Commission. He agrees that if they need to reevaluate the city's commitment to providing its own animal control,now is the time to do it. Mr. Varner noted that the Council is not 10 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 6. NEW BUSINESS(CONT.) C. Airport Economic Development (4) continued... questioning the quality of the South Bend Animal Control operation. The St. Joseph County Humane Society is building a new facility. Perhaps it is time to consider again having a combined facility. He worried that the anticipated cost of$1,800,000 for South Bend's new building may not be the final cost. Also,the initial costs are minimal;the on-going maintenance costs over the course of 20 or 30 years are extraordinary. He thinks the city should evaluate the efficiencies of combining operations with the Humane Society before proceeding with constructing this new facility. Mr. Inks indicated that the Commissioners wish to table action on this item until the issue is resolved,but offered Ms. Toppel an opportunity to make her presentation. Ms. Toppel noted that the city received a proposal from the Humane Society in March of 2010 for combining operations. The proposal was that the city would maintain its current facility and current employees and transport animals to the Humane Society. In addition to an annual contract fee,the city would pay a fee per animal transferred to the Humane Society. The Humane Society would keep all revenues from licensing, reclaimed animals and adoptions. Ms. Toppel, Gary Libby, Valerie Schey of CARE and Mayor Luecke, met to consider the proposal. The proposal would cost the city more per year than operating our own facility. The current facility is in need of 11 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 6. NEW BUSINESS(CONT.) C. Airport Economic Development (4) continued... major repairs. The Humane Society's suggestion to keep that facility running is not an option. Ms. Toppel stressed that the proposal is not something the city has not considered. She does not believe it requires additional time to consider. It is urgent to begin construction of a new facility. Ms. Toppel reported that the initial estimate for construction of the new shelter was $5,000,000. At that time is was an educated guess as to how much was going to be needed. Code Enforcement/Animal Control did not have building plans in hand at that time because it did not have the funds to pay the architect for building plans. They pared the project down to a cost of$1,500,000, an actual engineering estimate,then went out for bid in June 2010. The bids came in over budget. There was one contractor out of Ft. Wayne who came in very close to the estimate,however,they've since had issues with regards to union and equipment failure; therefore,we were not interested in using that company. The next highest bid was $200,000 over the $1,500,000. Staff then examined every aspect of the bid and tried to pare costs further. Then Jonathon Burke was hired as the Energy Director for the City of South Bend. Animal Control worked with Jonathon Burke and Carl Littrell from Engineering to find additional savings. They were able to reduce energy costs 50%over the life of the building. But ultimately the cost to construct the building was the same. 12 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 6. NEW BUSINESS(CONT.) C. Airport Economic Development (4) continued... Ms. Toppel noted that the $1,500,000 didn't include all the soft costs for landscaping (required by the rezoning) and for furniture and fixtures. That is the reason she is back before the Commission today for an additional $300,000 which includes all costs that we've paid for to date: architects, engineers,rezoning, and board of zoning appeals. This additional$300,000 will make the final cost of the shelter$1,800,000. Mr. Inks thanked Ms. Toppel for that presentation. Based on the Council's request that this item be tabled for further investigation,the Commission wished to table the item. Upon a motion by Mr. Varner, seconded by COMMISSION TABLED ITEM 6.0(4) Mr. Downes and unanimously carried,the Commission tabled item 6.0 (4) 5. OLD BUSINESS There was no Old Business. THERE WAS NO OLD BUSINESS 6. NEW BUSINESS A. Housing (1) Loan and Grant in connection with the South Bend Home Improvement Program for property located at 1020 S. Grant Street(Sharon James) Mr. Inks noted that the loan is for$2,700. The grant is $2,550. 13 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 6. NEW BUSINESS(CONT.) A. Housing (1) continued... Upon a motion by Ms. King, seconded by COMMISSION APPROVED THE LOAN AND GRANT Mr. Downes and unanimously carried,the IN CONNECTION WITH THE SOUTH BEND HOME Commission approved the Loan and Grant In IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 1020 S.GRANT STREET(SHARON connection with the South Bend Home JAMES) Improvement Program for property located at 1020 S. Grant Street(Sharon James) B. South Bend Central Development Area (1) Commercial Lease for property located at 117 S.Michigan Street(Imagine That!) Ms. Jennings noted that Imagine That! was one of the pop-up holiday retailers. The intent for the holiday pop-up shops was to generate permanent occupancy in the Redevelopment Retail vacant storefronts. Imagine That! has agreed to a one-year lease with the Redevelopment Commission, The terms the staff plans to present to Imagine That! are: - 12 month lease term beginning 6/1/11, and ending 5/31/12. - base rent will be the greater of 10%of gross sales or a minimum monthly amount starting at$150 and increasing$50 each month until month five. - for months six through twelve,the base rent will be the greater of 10%of gross sales or a minimum monthly amount of$453.46. This set rent schedule includes Common Area Maintenance(CAM). - Imagine That! will be responsible for payment of all utilities. 14 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 6. NEW BUSINESS(CONT.) B. South Bend Central Development Area (1) continued... - Either party will have the option to terminate the lease at any time with a 30-day written notice to the other party. Mr. Inks noted that the Commission approved the terms of this lease at a previous meeting. This lease is a draft,but incorporates the terms already approved. Staff recommends approval, subject to final legal review. Mr. Varner asked whether utilities were in the name of the lessor or lessee. Ms. Jennings responded that the utilities will be in the name of the lessor. The lessee will reimburse the Commission. Mr. Varner suggested that the Commission could get stuck with unreimbursed utility expenses. He would prefer to have the utilities in the name of Imagine That! Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE COMMERCIAL Mr. Varner and unanimously carried,the LEASE WITH IMAGINE THAT!FOR PROPERTY Commission approved the Commercial Lease LOCATED AT 117 S.MICHIGAN STREET,SUBJECT TO FINAL LEGAL REVIEW with Imagine That! for property located at 117 S. Michigan Street, subject to final legal review. (2) Downtown South Bend Window Galleries Proposal Ms.Nicholl-Smith noted that DTSB is proposing a pilot program to fill the windows of two spaces of the Michigan Street shops. If it turns out to be something people enjoy, then maybe the city would extend it to other 15 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 6. NEW BUSINESS(CONT.) B. South Bend Central Development Area (2) continued... landowners in downtown. It's a proposal to make the window spaces available to local artists or art organizations for a temporary window gallery. The concept is being used both in Chicago as part of Pop-up Art Week and in Evanston as part of Art Under Glass. Downtown South Bend would like to create a visual continuum for people when walking from point A to point B. DTSB will follow the Art Under Glass model because what works about that one is other than swapping out a painting occasionally,they give no other access to the space. They just get the window. Ms.Nicholls-Smith said we will start this demonstration program up by July and have it running through Art Beat. Ms.Nicholl-Smith noted that the lease contains a 14-day notice to vacate clause so that if a lease-paying tenant is found,we only need to give 14 days' notice to vacate. She noted that Evanston, Illinois has been operating the program for some time. We have a copy of their lease, a very simple one. It's the artist's responsibility to take care of installation. The program generates excitement and we hope it reinforces downtown as the place to locate if you want to be around creative innovative environment. Mr. Varner asked if there are hard costs. Ms. Nicholl-Smith responded that there are no hard costs and DTSB will be working with CB Richard Ellis to make the sign for the 16 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 6. NEW BUSINESS(CONT.) B. South Bend Central Development Area (2) continued... window. One of the DTSB Board members has offered to do the graphic design for the artist's sign for free. Mr. Downes asked if the program is successful do we plan to do it beyond September. Ms.Nicholl-Smith responded that Evanston only allows an artist three months. They must move out,but could do a window again later. Ms. King asked whether the artist takes all responsibility for the safety of his work. Mr. Leone responded that we should be able to protect ourselves with the right disclaimer language in the lease. Ms. Nicholl-Smith added that she will recommend to the artist that they insure their work against theft. Mr. Alford asked whether there will be any guidelines for the type of art. Ms.Nicholl- Smith replied that the rules of public art will apply. We're planning to invite the South Bend Museum of Art to display for the first round, and then include individual artists after that. She assured the Commission that DTSB will make sure that nothing distasteful will be displayed. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVEDTHE DOWNTOWN Mr. Varner and unanimously carried,the SOUTH BEND WINDOW GALLERIES PROPOSAL Commission approved the Downtown South Bend Window Galleries Proposal. 17 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 6. NEW BUSINESS(CONT.) B. South Bend Central Development Area (3) Proposal for professional services for improvements in the Downtown Medical Services District Mr. Gibney noted that staff solicited a proposal from The Troyer Group to prepare preliminary design concepts for further improvements in and around the Memorial Hospital campus,to create a unified look for Memorial owned buildings: the Memorial Office Center,Nursing Education Building, and the former MarMain Pharmacy along the eastern side of Michigan Street, and the skywalk connecting the hospital with the Office Center. The proposal is in the amount of$14,900 and would be paid for from the Medical TIF. The subsequent investment that will follow will also come from the medical TIF. The Memorial Campus is the gateway to downtown South Bend. It's a huge complex and is sometimes hard for people driving in to town to find their way around. The new main entrance to Memorial Hospital is on Bartlett Street, formerly a small residential street. The city has been doing a lot of infrastructure work around Memorial lately. Mr. Gibney distributed a map showing recent improvements around Memorial,upcoming improvements, and the improvements being requested in this proposal. The improvements include curbs and sidewalks, landscaping, lighting and building facades. It is the city's goal to complete the work around the Memorial Campus by 2012 so that we have a nice look along the gateway coming into town. The Downtown Medical 18 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 TIF district 6. NEW BUSINESS(CONT.) B. South Bend Central Development Area (3) continued... has an expiration date of 2017 or 2018. We may be able to dissolve it sooner. Staff requests approval today to hire The Troyer Group to begin doing design concepts that will unify the east side of that street. Once we decide on those designs we'll come back to the Redevelopment Commission for the funding for construction. Mr. Varner suggested that the Commission consider extending the boundary and/or the end date of the Medical TIF district to be able to make improvements in Leeper Park. The Park Department has difficulty finding resources to make the improvements needed. Mr. Gibney indicated that he would love to do that. He agreed they are needed and that the Park Department does not have the resources to make them. Staff will look into the possibility of funding the improvements with TIF. Mr. Gibney noted that as part of the existing Medical TIF resources, staff would like the Commission to consider setting aside $300,000 to participate in a$1.6M expansion of the South Bend Civic Theater classroom space. Ms. King questioned whether the Commission would want to set a precedent of contributing to a building campaign for a non-profit agency. Mr. Gibney responded that we have done so in the past, citing Ivy Tech and WNIT as examples. The critical criteria are location and neighborhood 19 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 6. NEW BUSINESS(CONT.) B. South Bend Central Development Area (3) continued... revitalization. Our legal department would need to determine if the expenditure fits the law. Upon a motion by Mr. Downes, seconded by COMMISSION ACCEPTED THE PROPOSAL FROM Mr. Varner and unanimously carried,the THE TROYER GROUP FOR PROFESSIONAL Commission accepted the proposal from The SERVICES IN THE AMOUNT OF$14,900 FOR THE DOWNTOWN MEDICAL SERVICES DISTRICT Troyer Group for professional services in the amount of$14,900 for the Downtown Medical Services District. (4) Resolution No.2878 approving and authorizing the execution of an amendment to the Addendum to the Master Agency Agreement. (621 E. Jefferson Streetscape Modernization Project) Mr. Schalliol noted that Resolution No. 2878 approves an addendum to the Master Agency Agreement for curb and sidewalk work in front of the new location for Michiana Lock &Key and will serve as a complement to the work being done to renovate its new building. The design work has generally been completed as part of the Jefferson Boulevard Streetscape Modernization Design but the need for this contract is to modify the plan scope to limit the documents only to this parcel. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2878 Mr. Downes and unanimously carried,the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 2878 OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT FOR WORK AT approving and authorizing the execution of 621 E.JEFFERSON IN THE AMOUNT OF$34,000. an amendment to the Addendum to the Master Agency Agreement for work at 621 E. Jefferson in the amount of$34,000. 20 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 6. NEW BUSINESS(CONT.) B. South Bend Central Development Area (5) Consent to Assignment of Lease and Release(131 S.Michigan Street,Bruno's Pizza) Ms. Jennings noted that the Redevelopment Commission entered into a Lease Agreement with Bruno Cataldo d/b/a Bruno's Pizza on August 1, 2010. Mr. Cataldo has decided to turn the business over to his business associate, James Weldy d/b/a J. Weldy, LLC. J. Weldy, LLC will assume all responsibilities and terms stated in the Lease Agreement with Bruno's Pizza. Staff recommends approval of the Consent to Assignment of Lease and Release. Mr. Varner questioned whether the business will still be operated as a Bruno's Pizza and whether Mr. Weldy has operated other Bruno's Pizza restaurants. Ms. Jennings responded that it will still be operated as a Bruno's Pizza. Ms. Psaros of CB Richard Ellis added that Mr. Weldy is currently the General Manager of the Bruno's downtown and he worked at the main location for several years. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE CONSENT TO Mr. Varner and unanimously carried,the ASSIGNMENT OF LEASE AND RELEASE(131 S. Commission approved the Consent to MICHIGAN STREET,BRuNo's PIZZA) Assignment of Lease and Release (131 S. Michigan Street, Bruno's Pizza) C. Airport Economic Development Area (1) Proposal for general environmental consulting services 21 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 6. NEW BUSINESS(CONT.) C. Airport Economic Development Area (1) continued... Mr. Inks noted that the proposal from Hull& Associates, Inc. is for an amount not to exceed$25,000. The city has used Hull& Associates for several years to do general consulting services at the Oliver Plow Industrial Park and Ignition Park sites and this would continue that arrangement. Hull is very familiar with the properties. Staff recommends approval Upon a motion by Ms. King, seconded by COMMISSION APPROVED THE PROPOSAL FROM Mr. Downes and unanimously carried,the HULL&ASSOCIATES,INC.FOR GENERAL Commission approved the proposal from ENVIRONMENTAL CONSULTING SERVICES. Hull&Associates, Inc. for general environmental consulting services. (2) Resolution No.2880 setting a public hearing on the appropriation of tax increment financing Ms. Leonard noted that Resolution No. 2880 sets a public hearing for 4;00 p.m.,June 14, 2011 to review the possible appropriation not to exceed$8,500,000 in the Airport TIF. There are a lot of projects on the board and additional money is needed. Mr. Inks noted that in previous years the Commission appropriated all the funds available in each TIF area and,particularly in the Airport TIF, staff would be unable to accomplish all the projects for which funds were appropriated. This year the Controller asked staff to be more realistic in is expected work program and appropriate only what it thought it could accomplish. Today staff is 22 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 6. NEW BUSINESS(CONT.) C. Airport Economic Development Area (2) continued... requesting an additional appropriation because we have already contracted for the work in original appropriation and expect we can get more done this year. The Commission has approved and staff has contracts are pending for about$4,000,000, subject to an$8,500,000 appropriation resolution to be considered on June 14. So these aren't things that we hope to do,these are things that are actually moving forward. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2880 Mr. Alford and unanimously carried,the SETTING A PUBLIC HEARING ON THE Commission approved Resolution No. 28 80 APPROPRIATION OF TAX INCREMENT FINANCING setting a public hearing on the appropriation FOR 4:00 P.M.,JUNE 14,2011 of tax increment financing for 4:00 p.m., June 14, 2011. (3) Easement and Right of Way for Indiana Michigan Power along two properties in Oliver Industrial Park. Mr. Sikora noted that there are two "Requests of Easement&Right of Way" from Indiana Michigan Power for two properties located in Oliver Industrial Park. The purpose of the easements is for the installation of electrical utilities. These two requests have been reviewed by legal counsel and vetted through the Department of Public Works. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVEDTHE EASEMENT AND Mr. Varner and unanimously carried,the RIGHT OF WAY FOR INDIANA MICHIGAN POWER Commission approved the Easement and ALONG TWO PROPERTIES IN OLIVER INDUSTRIAL PARK. 23 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 6. NEW BUSINESS(CONT.) C. Airport Economic Development Area (3) continued... Right of Way for Indiana Michigan Power along two properties in Oliver Industrial Park. (5) Resolution No.2877 approving and authorizing the execution of an amendment to the Addendum to the Master Agency Agreement. (ZCI Demolition Inspection Services,former Ziolkowski building on Lafayette). Mr. Schalliol noted that as the city prepares for demolition of the former Ziolkowski Construction properties,the city needs some additional outside services and staff to provide environmental oversight. Wightman Petrie has submitted a proposal in the amount of$9,300 to provide such services. Staff requests approval of Resolution No. 2877. Upon a motion by Ms. King, seconded by COMMISSION APPROVED RESOLUTION No.2877 Mr. Downes and unanimously carried,the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 2877 OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT.(ZCI approving and authorizing the execution of DEMOLITION INSPECTION SERVICES,FORMER an amendment to the Addendum to the ZIOLKOWSKI BUILDING ON LAFAYETTE) Master Agency Agreement. (ZCI Demolition Inspection Services, former Ziolkowski building on Lafayette). (6) Resolution No.2882 approving and authorizing the execution of an Addendum to the Master Agency Agreement(Schaffer Gear Metronet Conduit Project). 24 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 6. NEW BUSINESS(CONT.) C. Airport Economic Development Area (6) continued... Mr. Inks noted that staff is requesting $60,000 for conduit to bring Metronet services to Schafer Gear Works. Currently the conduit ends at Moreau Court. This project would extend the conduit down Nimtz Parkway to Schafer Gear. It would also make the Metronet accessible to other businesses between Moreau Court and Schafer Gear. Schafer Gear(or related entities)recently received approval for tax abatement on a project approaching$18 million of new investment that was both a new building as well as a large amount of equipment to put in that building. As a result there will be 26 new jobs created in the next two years. This is part of the city's investment for that project. Mr. Varner noted that this is the sixth or seventh year of construction on the Metronet. He feels it should begin paying a lease or fee of some kind to the city as do Comcast and AT&T. As part of the agreement between the city and Metronet,the city receives free access to its services. Mr. Downes asked where the Metronet will be extended next. Mr. Inks responded that the eastern part of Nimtz still needs the Metronet to be extended down to serve the other businesses past Schafer Gear. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2882 Mr. Downes and unanimously carried,the AUTHORIZING THE EXECUTION OF AN ADDEN- Commisslon approved Resolution No. 28 82 DUM TO THE MASTER AGENCY AGREEMENT approving and authorizing the execution of (SCHAFFER GEAR METRONET CONDUIT 25 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 6. NEW BUSINESS(CONT.) C. Airport Economic Development Area (6) continued... an Addendum to the Master Agency Agreement(Schaffer Gear Metronet Conduit Project). D. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area E. South Side Development Area There was no business in the West Washington- Chapin Development Area. F. Northeast Neighborhood Development Area There was no business in the South Side Development Area. G. Douglas Road Economic Development Area There was no business in the Northeast Neighborhood Development Area. 26 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 6. NEW BUSINESS(CONT.) H. Ratification of Services Contracts Commission Role in Service Contract Staff Transaction Contractor Provided Amount Member 1518 Chapin Acquisition Michaels Appraisal $350 Relos Appraisal Service 1513 S Chapin Acquisition Michaels Appraisal $350 Relos Appraisal Service 604 S. Scott St Acquisition Michaels Appraisal $1,775 Sikora Millenium Appraisal Services Environmental 604 S. Scott St Acquisition R.E.Pitts & Appraisal $1,750 Sikora Millenium Assoc. Environmental 622 E. Sample St Acquisition Michaels Appraisal $400 Schalliol Appraisal Services 622 E Sample St. Acquisition Witt Appraisal Appraisal $400 Schalliol Services Upon a motion by Mr. Downes, seconded by Mr. COMMISSION RATIFIED THE SERVICES Varner and unanimously carried,the Commission CONTRACTS APPROVED BY STAFF SINCE MAY 10, ratified the Services Contracts approved by staff 2011 since May 10, 2011 I. Other (1) Engagement Letter from Sopko, Nussbaum,Inabnit and Kaczmarek for outside legal counsel. Ms. Leonard Inks noted that the Commission has expended the$60,000 previously approved for outside legal counsel. This Engagement Letter approves an additional $60,000 for legal services to assist staff in some of its legal issues in the various TIF areas. 27 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 6. NEW BUSINESS(CONT.) I. Other (1) continued... Mr. Varner asked if this was an additional appropriation for 2011,meaning we could spend$120,000 annually. Ms. Leonard Inks responded that each$60,000 typically covers more than one year. This is the first contract for legal services in the year 2011. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE ENGAGEMENT Mr. Varner and unanimously carried,the LETTER FOR SOPxo,NUSSBAUM,INARNTT AND Commission approved the Engagement KACZMAREK FOR OUTSIDE LEGAL COUNSEL. Letter for Sopko,Nussbaum, Inabnit and Kaczmarek for outside legal counsel. 7. PROGRESS REPORTS Mr. Inks reported on progress on the Morris fountain. PROGRESS REPORTS The pumps have been repaired. But when they were putting them in they realized there was more work to be done;the pit they go into had to be cleaned up at the cost of about$2,800. That was an additional expense that the Commission will be picking up. Mr. Inks reported on the property the city is buying for a right-of-way. We want to extend Olive Road north to Adams Road as part of a long term transportation plan for the development of Blackthorn and Portage Prairie, creating a new north/south corridor. The property required to construct the extended Olive Road is outside the city limits. It is,therefore,being acquired through the Board of Public Works,but the Board of Public Works would be using TIF funds. There is a scheduled closing for this property May 26, 2011, and we haven't come to the Commission yet to do an Addendum to the Master Agency Agreement requesting the Board of Public Works to act on its behalf. But the project is moving forward. We're at the point where we need to 28 South Bend Redevelopment Commission Regular Meeting—May 24, 2011 7. PROGRESS REPORTS (CONT.) buy it. Mr. Inks wanted to bring that to the Commission's attention before the closing. Staff will be coming back the next meeting with a retroactive action to be taken unless you have concerns about proceeding at this point. Mr. Varner asked what resources were being used to pay for the acquisition and extension. Mr. Inks responded that they will be TIF resources. Mr. Varner expressed concern about an audit. Mr. Inks responded that our legal department is looking at the legalities. The anticipation is that we'll use TIF funds to close on this. Approximately$269,000 for the right-of-way for approximately 269,000 square feet. Funds are appropriated. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NExT COMMISSION MEETING scheduled for Tuesday, June 14, 2011 at 4:00 p.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Ms. King made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 4:55 p.m. 29