HomeMy WebLinkAbout05-08-07 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION
RESCHEDULED REGULAR MEETING
May 8, 2007 "' Floor COL111ty City Building
10-00 a.m. 227 West Jefferson Boulevard
Presiding: Marcia 1. Jones, President South Bend, Indiana
1. ROLL CALL
Members Present:
Members Absent
Legal Counsel:
Ms. Marcia Jones,, President
Mr. Karl King, Vice President
Mr. Greg Downes, Secretary
Mr. den Peezkoski
Mr. Hardie l la.l e, Jr.
Mr. Charles S. Leone, Esq.
Redevelopment Staff: Mr. Don Inks, Director
Mrs. Cberyl Phipps, Recor li n e rotary
ID
i .1 Economic Development Specialist Mr, l ,
Mr. Andrew Laurent,, Economic Development Specialist
Ms. Ann Kolata, Senior Economic Development Specialist.
Mr. Nicholas Wit wen, Economic Development Specialist
Mr. Robert Mathia, Senior Economic Development Specialist
Others Present: Mayor Stephen J. Luecke
M. Mikki lobki, Mayor's Office
Mr. Tom Price, Mayor's office
Mr. Jlry Gibney, Exec. Director
Ms. Jamie Loo, South Bend Tribune
Ms. Rita Kopala
Nis. Glendal ae Hemandez
Ms. Linda Wolfson
Mr. Marco Mariam, Downtown South Bend
Ms. Jamie Wade, CB Richard 'Ellis
Ms. Autumn Acrgeler, CB Richard Ellis
Mr. Richard Hill, Baker & Daniels
Ms. Deborah Locsi, Baker & Daniels
Mr. John Sellers, Program Analyst
Ms. I ebrah Jennings, Property Manager
M . 'Brooke Cannoot, l ban antari
Mr. Erie Abarburiell
Mr. E11hu Feustel
Mr. Shawn Tod d
Ms. Cathy Catlin
South Bend Redevelopment Commissloll
eschedUled Re War Meeting .-May 8, 200
2. APPROVAL of Ml NurE
A. Approval of Mintites of the Regular Meeting of
Friday, April 20, 2007.
Mr. Pee l o vsl i noted that on pcy 12 of the i inutcs
the motion was made with reference made to
discussion in Executive Session, yet there is 110
clarification as to what was said in Executive
Session. In cases of attcmpting to documcnt what
was said and what was exactly part of that motion',
that I s not included. Mr. Pee ko 'ski stated that
either the Commission Is lid violation of its bylaws
as to what can be di CUSSCd ill Executive Session
under I. C. 5-14-1.5-6. 1. or what was said ill
Executive Session needs to be Included. I
anybody needs to do research on this l articul6ar
topic, there's nothing g to go back to. Mr.
Pec l o vski surmised that no notes or .record ino of
the conversation In ExeCLItIVC Session. So, if
things do come up where the Commission has a
discussion in Executive Session and it's referred to
in the regular meeting, we Bleed to have it referent..
Ms.. ones asked Ms. Phipps to review the tapes to
see if there was anything on the tape. If not, them
maybe there was no ov rsi ght in not mentioning
exactly what we said iii Executive Session.
Mr. Pec ko vs i stated that the Commission
shouldn't waste its time at the regular meeting
going over the sane material that it has discussed
in Executive Session. Mr. Pec l owsl i moved that
the Minutes be amended to include that which was
said in the Executive Session.
Mr. Leone noted that the motion at the April 20
meeting was Mr. Pce o l is motion. He
suggested that 1f .Mr_ Peczkowski had specifics
language how that motion should be revised in the
minutes, he could provide that to Ms. Phipps. Mr.
Leone stated that the Commission will review the
addition at its next meeting.
2
otith Bend Redevelopment Commission
esehe l fled Regular Meeting —May 8, 2007
2. APPROVAI, of MINUTES (CO NT.)
A. continued...
Mr. Peczkowski questioned whether I. C. 5-14-1.5-
6 . allows the disotrsslon of the TJX
proposal that came Grp at the last Executive Sessioll
because the law says that "the purchase or lease of
real property by the goveming body tip to the time
of contract or option to purchase or lease is
executed by t he parties." Mr. Pee kowsl l noted
that the contract is already 117. place. .'ommis-
sioners were discussing an a.mcndn ent to an
existing contract. That seems to fall outside the
pLirv]eW of an Executive Session. The
Commission was actually in violat'on cad its own
bylaws.
Mr. Leone rioted that it isn't the Commission's
bylaws that have been. .referred to In the cite, bUt
the redevelopment statute in the Indiana Code. l • e
offered to look at the law and its interpretations.
The Commission had a i- equest to amend a
Contract for the Sale of Lard which has to do with
the AJ Wright pro eet, T X `or panies, 'fne. Mr.
Leone felt that the intent of the statute is to coves
those natters that are related to ongoing
development. He didn't believe it would be react
quite as naiTo ly as Mr. Peczkowski suggested.
He offered to take a look at to law and its
interpretations.
Mr. King made a motion that the Minutes of the
April 20, 2007 meeting be approved as presented,
plus are appropriate amendment ent to include Mr.
Pee r o vsk.i's wording from the .Executive Session.
Mr. Downes seconded the lotion. The
Commission approved the Minutes of the .l egUlar
Meeting of Friday, April 20, 2007 with Mr.
Pee kowsf is amendment.
3
RF_(i(._11._AR MEETING OF FRIDAY, At>izji.1 203
2007 W 114-1 MR. PECZKOWSKI's AMFNDMFN r
Guth Beiid Redevelopment Commissioll
ReschedUled RC Ular M.eetYn g —May , 07
3. APPROVAI, OF CLAIMS
Redevelopment Commission Claims submitted May 8, 2007 for approval-
324 AIRPORT AEDA
Boswell Golf Design, Inc. 1,600-00
41.4 SAMPLE EW'ING GENERAL
Ml .o aje sl 1 & Associates, Inc. 842.85
420 FUND TIF DISTRICT-SBCDA GENERAL
Rose Pest SOILM011S
90.00
Indianan Michigan Power
367.40
AT&T
32.00
I P .'
_
South Bend v atcr Works
9.
CB Rlch'.trd Ellis
1 � f 58.4 i
Anipco Svsteni Parking
816.
428 FUND AIRPORT 2003 BOND
DLZ
3,735.25
619 FUND BLACKTHORN
Meadowbrook Golf Group Inc.
J)00.0
17,585.24
Upon a motion by Mr. Downes, seconded by Mr. King
and unanimously carried, the Commission approved the
Claims submitted May 8, 2007, and ordered checks to
be released.
4. COMM'UNICATIONS
There were iio Communi eations.
5. OLD BUSINESS
There was no Old Business.
4
COMMISSION APPROVLI) 1-HE CLAIMS
sURM[TT 1) MAY 9 , 2007, A N F) 0RDF_ RF~I DTI .1
13H RF-11"'ASED
T F =� +[`R1__ NO :ONIMIJNIC:ATIO S
THERE. WAS NO 1_[) BUSINESS
South Bend ede�,e1opn -ic nt Con-in-ilssiorl
Rescheduled l e LIlar 'Meetin ._....May 8, 2007
6. NEW BUSINESS
A. Receipt of Bids
Receipt of Bids for property in the South
Bend Central Development Area. v W
and ADJ 312 East 1,aSall a Street,
Commerce Center)
Mr. In s noted that there were no bids 'NO BID WF_RF R1_v CFJV FD
received by the 1.0,00 a.m. deadline.
' 'ax 'I'ax Abatements
Commission approval requested for
Resolution No. 2333 approving an
application for real property tax deduction
for property located at 202 S. Michigan St.
in the South Bend Central Development
Area. (Key S , IAX, the Hinman
Company)
Mr. Mathia gave the staff report on the
project. The proposed rehabilitation project
will include interior office space remodeling
and exterior renovation to the Key Tower
ffinldinu as well as renovation to the adjacent
Plaza Courtyard. The office space
reniodeling will include the build-out o
32,952 s . ft. on the f It", 12t", 13t" and 14"'
floors for the new tenant, Baler & Daniels.
It will also include the build -out of 3,300 sq.
ft. of office space on the "' floor, necessary
to relocate the tenant, Stif:. el, ' ieolaus
Company, for the Baker & Daniels move -in.
Finally., the ground floor lobby of'the
bL111d111g will be renovated to provide
additional and improved entry space.
Exterior renovation will include installation
of the new "Key Bank" and "Baker &
Daniels, LLC" si nage near the top of the
building, the addition of fi de and coloring
5
South Bernd Redevelopment Con-milssioll
Rescheduled RC War Meeting - May 8, oo
6. NEW BUSINESS (CONT.)
B. Tax Abatements
(1) ti ...
to the building and installation of an awnin
on the north side of the building. The Plaza
Courtyard will be improved by adding green
space. These renovations are all necessary to
briny the Ivey Tourer l .ildin to Class "A"
office space and nia e it possible :" or Baker
& Daniels to be a Ion. term tenant in the
downtown so .Ith Bend Building.
Mr. . M a.thi a noted that two bUilding Permits
(valUed at ,000) have been i sucd .for a.
portion of the renovation work out of the
total cost of $ 5,9 11680. That wok..is
ineligible -f=or tax abatcnient; however, the
applicant is requesting the Redevelopment
Commission approve the abatement
application with this work included in order
to allow it to brina the total prod ect before the
Lt� Common Council for eonsiderafto .
Total investment in the project will be
$5,951, 80. Total taxes to be abated during
the tcn year abatement period are estniiat.e l
at 51,01 M8 . Total taxes to be paid during
the tern year abatement period are estimated
at l ,0301796. If the waiver is not approved
by the Common Council, taxes to be abated
durijig the ten year period are estimated at
$929,408. Total taxes to he paid dUring that
ten year period w1thout the waiver are
sti matcd at $948, 182.
It is est lni.ated that the total project will
create four new, permanent, full-time jobs
in the first year of operation representing a
new annual payroll of $406,000. The project
6
Sout h Bend l edevelopnient Coiiimissioll
Rescheduled e ular Mecti n ....May 8, 2007
6. NEW BUSINESS ONT.
B. Tax Abatements
(1) continued...
will also maintain 1 s 1r , p nnanent
f 11 -tinic jobs representing an annual payroll
of $2,986,470.
The Hinman `on pay y has received no
p re v i o l_ I s '1 h ,-i e III I I t_ rl-' he property is
properly zoned for the proposed.
it proveni.ents. The property is located in the
South Bend Ceiitrcal Development Area,
which is a]-'ax Increnie nt Allocation Area;
therefore, the pennon tOr real property tax
deduction. must -first be approved. by the
South Bend Redevelopment Commission.
Mr. Pccz o wsl:i Doted that the pulling of
building permits prior to the abatcnient bein
approved indicates that the project would be
completed whether or not abatement is
anted. All of the public benefit points that
come to shape our policy one cyrantin
abatements mean nothI11 as we've seen in
the TJ Maxx/AJ W ri ah t IISSUC. 1.f the pro�iccts
don't live up to promises., we just renegotiate
as they don't happen. The project will
happen whether or not the City grants
abatement. Mr. Pee ko vsl i stated that the
Commission needs to staft weaning
developers frorn expecting these types of
sweeteners to happen on a .regUlar basis.
Mr. Hill noted that Baker & Daniels has
signed a fifteen year lease. The lease d.id
request that the building owner file an
abatement petition. .faker & Daniels'
investment in both construction and
equipment will be just under $4M. Mr. Hill
7
South Bend Redevelopment Conin -i i ssi on
eschedLiled Regular Meeting ----May 8, 20
6. NEW BUSINESS SS '0 8
B. Tax Abatements
(1) continued...
oted that whether the abatement is granted or
not affects the square footage rental amount
under the lease. Baler & Daniels anticipates
during the June 200
constructi.on period there will be 50-60
construction jobs, involvino, approximately
ten local subcontractors. It's a very
significant constnicti on protect. The project
is ve -' si ifie -ant to Baker & Daniels
becaLIsc Wit]IOUt it fliev were wonderiny if
they'd be able to meet their 01TA.Ce p Ic e
needs in downtown South Bend. They are
happy to be involved in the overall
renovation project and to be able to keep
their offices in downtown South Bend.
Mr. Mathia e plalned the reason the one
building permit was p klled and the project
completed is that C'B Richard Ellis was
occupying the 9`11 floor space where Stiffle,
Nicolaus and Compaiiy was to relocate to
male room for Bakcr & Daniels. CB
.diehard Ellis had to move quickly to make
room for Stiffle, Nicolaus and Company.
1. Wade noted that the abatement affects
the entire bulldinor. The landlord intends to
bring the entire building up to Class A office
while maintaining competitive pricing to
reduce the risk of Current tenants relocating.
The abatement would help keep the lease rate
competitive for the remaining tenants.
Mr. Peczkowski asked if it is the business of
ove meat to make the landlord
competitive. GIs. Wade acknowledged that it
South en d Redevelopment opment Commission
eschcduled Re ular Meeting .- -.May 8, o
6. NEW BUSINESS (CONT.)
B. Tax Abatements
(1) continued...
is not.
Mr. King noted that the requirement that tax
abatement be approved before a bUildin
permit is pulled is not a statutory
regUirem ent, but a policy of the C onin-ion
Council. Therefore, the Council can. choose
to waive its own policy. In approving this
re so lutioz , the Commission would be say.1110
that, except for the L111din permits issued,
this is a project that qualifies -for tax
abatement. 'He noted that the 'ouncil has
waived that poficy ill the past.
Mr. Downes jade a motion to approve
Resolution Igo. 2333 approving, are
application for real property tax deduction
for property located at 202 S. Michigan St. ill
the South Bend Central Development Area..
(Key SB, LLC, the Hinman Company). Mr.
King seconded the motion. The vote was
th. ee to one with Mr. Peczl ows i opposed.
C. Sout h Bend Central Development Area
(1) approval requested for
Agreement for Services by and between
the City of South Bend, Indiana and
Downtown South Bend, Inc.
Mr. Inks asked that Item . `. t be tabled
Chit the May 18 meeting. A draft of the item
was circulated for review by all parties.
"here are still several questions that have not
been addressed in a final. document. A.
meeting has been scheduled to work through
9
COMMISSION APPROVr-D Rr-'soi-tj-rioN No, 1),)_:)
APPROVI Gi AN APPLICA"HON FOR I FAL
L- OCATE -D x 202 S. M ICI IIGAN S`[-. IN 1111.`
Ki - "Y S B, LLC1 41 -1E H IN MAN OMPA NIY .
SOLIth Beiid l e developinent 'on- mission
Rescheduled Regular Meetin - -. -- -May ,x.007
6. NEW RUSINESS (CO NT.)
C. South Bend Central Development Area
(1) continued...
the isUes.
Upon a motion by Mr. King, seeonded b y "FABI-ED
Mr. Downes and unanimously carried, the
C"ommisslon. tabled Item 6.C.(I)
2 Commission approval requested for 1,ease
by and between the South Bend
U
Redevelopment Commission and
hanwantari, In e.
.fir. h*s noted that this is the Yoga business
1110ving into a previously vacant space: M the
Michigan Street Slops. At its April
iiicetlng the Commission. approved a Letter
of Intent subject to the na i� or the
protect being put into place. This lease
follows the terms of that Letter of Intent.
The financing has been approved by the
bank.
Mr Pec ko vsl i noted that the lease doesn't
seen to specify how much the taxes are,
what the CAM fees are, etc. as part of the
additional gent charges. Ms. Aggeler
responded that the estimated CAM is
$3.91 ft , including the estimated taxes.
Mr. Peczkowski also pointed OUt an. apparent
mistake on page 5, point 5.4 (a). "As of the
Effective Date, Tenant's Pro Rata Share with
respect to expenses allocable to the entire
Buildin,cy is that ratio or is ten and one half
percent (9.6%)." He asked whether ten and a
half percent is correct, or nine and six tenths
percent is correct. All agreed it should be
10
SoLlth Bend Redevelopment Commissioll
Re chedUled Re -- Meeting - -1 May , 007
. NEW BUSINESS (CON T.)
C. South Bend Central Development Area
continued...
9.6% because the math results in 9.6%.
Upon a .motion by Mr. King, seconded by
Mr. Downes, the Conimi.ssion approved the
Lease by and between the South Bend
Redevc1opment Commission. and
Dhanwantarl, Inc., as corrected.
(3) Commission approval requested for
pr oposal for planning services.
Mr, Gibney noted that the city solicited a
[)ropos�il.fi-oi-i.i.Hollaclay Corporation for a
proposed a planning uiltiative which will
CLIhni ate in a development strategy for the
East Bank propert.ies that are hard surfaced
properties or Linder developed propertIcs.
Examples of properties that will he central to
this plan are the former Rink site, the Wharf
site, and the Transpo site. The plan will be
geographically speclf:le. In Phase 1 it will be
from Jefferson St. north to LaSalle and cast
to Hill St.; Phase will be Jefferson St. east
to the Tran po site and n.elghborhood. This
is a smaller target area than some of the
previous planning initiatives for the East
Bank. Others have been all the way east to
Eddy St. The plan will include a professional
planning f mi, yet to be identified, although
the proposal lists four potential planning
firs. The planning period will be three
months, to be completed in September 2007.
There are a fair number of docun -rents that
have been created previously, particularly
documents that have been that created visi.o .
statements for the East Bank. All the
If
oLlth Bend Redevelopivent Commlssloll
Re ch duled e Ular Meeting tins ...May , 2007
. NEW SINES ONT.
C. South Bead Central Development Area
(3) continued...
documents wl. Ich have been created to date
will be available to the planning :frrrii which
Holladay World hire. Mr. Gibney noted that
Holladay Corporation will provide its
services to lead the planning process at no
cliarcy.
The East Bank property owners will be
invited. Anyone ownin. g property in the East
Ball 111av 1),. _ ic1 ate in a two - and -a.- a.l f day
charrette in late .1 oily or early AugUS . Mr.
Gibney stressed that n arl et bility of the plan
will be stUdied art all steps of the process.
"Flic plan will. be based on sound local. real
estate v al Lze . In the past. we have had some
proposals fior development of these sites that
were dynamic and dramatic, but didn't
necessarily reference the real estate market.
Mr. Inks noted that staff 1s requesting
aUthOrization to proceed with drafting a very
speeI fi proposal for- thes services. Staff
OUld bring the completed proposal back to
the Commission for consideration. The
estimated cost of the e n - ltant planning
firm is in the range of $30,000-50,000.
These funds would come from the downtown
TI F.
Mr. Peczkowski noted that in the Holladay
letter it says that meetincys would be by
invitation only, not public hearing type
sessions. Why is that`?
Mr. Gibney noted that property owners will
be invited. what we're trying to do is have it
12
South Bead l . develops icnt Commission
Rescheduled Re Ular Meeting .. day 8, 2007
6. NEW BUSINESS (CONS`.)
C. South Bend Central Development Area
(3) continued...
public process, yet limit the amount of
public who will be there to the property
M
Mr. Pee owsl i asked, then i
l fthere would
be only threc wvners paa .i ipa.ti� : owncrs of
the Rink site, the Wharf site, and the Transpo
site
Mr. Gibney responded that those were a r w
examples 01'_r e'11 eswte that we would like to
see developed in the near futtire.
Mr. pec zkowsk asked if flolla. lay isn't the
major player on the former Wharf site. Mr.
Gibney responded that Holladay Corporatioal.
owns the Wharf site.
Mr. Pee t o s i asked if Holladay owns any
of the other sites`: Mr. KincT responded that
they own the AM General bUilding and the
'eople.f. ink office bui 1,C41 1.x79.
Mr. Pee l o s i asked just what Holladay
WoUld be doin on "their nic el` " Mr.
Gibney responded that Holladay wi.11 be
oraanlzina the planning process, working
with the city to review aDd solicit the
professional planning firm, and assembling
the data that has been created to date on the
East Bank.
Mr. Peczkowskl clLIestIoned whether
Holladay would be participating in the
payment of $30,000-$50,000 fee to a
e011 UIt nt. Mr. Gibney responded, no, but
1
South Bend Redevelopment Commission
Rescheduled RCULIlar € ecting —Mar 8, 200
6. NEW BUSINESS ONT.
C. South Bend Central Development Area
(3) continued...
neither will they receive any of the ,o -
5 MOO.
Mr. King asked if the Commission is l ein.
LD
asked to agree to lim.1t proposals from. the
professional plannincy 1,.ir ms to those listed 1.11
the Holladay proposal. Mr. Gibney
responded that those w rejUSt examples, not
a definItIve list_
Mr. King g tated that dicre is li odi i my wrong
with this list of firms, but lie belt there would
be some local .fi.r.IIIS W110 WOLIld also be
competent and should be offcre 1 a chaiiee to
submit a proposal. 'Mr. Gibney acTreed.
Mr. Downes made a motion to approve the
concept of proposal From Holladay
Corporation for planntrig services in the East
Bank and authorize staff to pr eparc a more
-for al contract for such services. Mr. K111
seconded the motion. The vote was four to
ore, wIth. Mr..Pec l owsl .i opposed.
(4) Commission approval requested for
Resolution No. 2335 approving the Fair
Market Value of Property in the South
Bend Central Development Area. (former
Enzyme l ese rch Associates)
ll!t.r. Scha.11iol noted that Resolution No. 2335
sets the fair market value of the : on er
Enzyme Research property at 412 &
afa rette :blvd_, tax key number 18-415-
0555. The parcel is pro imately 1 8,000 sft
and contains a 9,795 sft building. The
14
COMMISSION Al'PROV EH "FFI F CON( II"I' OF A
PROPOSAL F'Rom HOLLADAY ~t)l l'0RA T ION FOR
PI- ANNING SERVIC ES' I TFIt':' F.AS -i- BANK AND
AU]"HO RIZED STAI-:F 'I -0 PREPAl L- A MORE
I'-(.)RMAI.. C"ONTRACTFOR SUC` I Sl..RVICUS
South Bend Re(le velopm ent Commissioll
Rescheduled l c ular Mcefing .-May , 2007
6. NEW BUSINESS (COIN.)
C. South Bend Central Development Area
(4) continued...
Property is zoned C. D. The proposed fair
market value of the property is derived by
averagina two independent appraisals as
$267,500. Staff recommends approval.
- JI:)on a niotion by MrF � Seconded by
Mr. Downes and unammousl F carri.ed, the
Commis ion approved Rcsolution No. 23)35
approving the Fair Market Vale of Property
its the South Bend Central Developnient
Ai-ca. J.-or er enzyme Research Associatcs
(5) Commission approval requested for Bid
Specifications and Design Considerations
for property in the South Bend Central
Development Area. (former Enzyme
Research Associates)
Mr. Schalliol. noted that the Biel
Speca.fieatlons Mcll.,Ide that the enti..re site
must be purchased together, as i, the
building must be adaptively rc s d, and that
all proposals must include a basic reuse plan
and a timefine detailing aspects of the site
redevelopment or site .improvements.
eceipt of bids will be Jun 1, 2007 at 10:00
a. m.
Upon a irotlon by Mr. Vii, seconded by
Mr. Downes and unanim.ously carried, the
Commission approved the Bid Specifications
and De i n Considerations for property in
the South Bend Central Development Area.
(fomier Enzyme Research Associates)
HR
CC) MIMISS10N AP1'ROVr..,[: E C)1._[...1]0N 0. ? ; ,5
APPROVING - HL' a�A1R .N4AR1 .E_1. }1.1- ..�.j1:- (.)I
IN '1'1-1F [_r F1.-1 B END CII-.NfT 1 .:= L
- R1� A. (F RM f -1R E YM F'
ESEAR(.1-1 ASsOC]A` ES
COWMISSION APPROVED THE BID
PE-. 'f1-{IC'A "FIONS AN[) Dt SIGN CON JM..- ,R.A1 "1O S
FOR PRC)P E RTY IN T[-[E Sou "n B FN D CENT A[_.
DI- vi,-,I...opm [: N -l- AR[ A. (FO RM1_;R. E NzYm
RES1- AR(J-1 A. so '1AT E
SOUth Bend Redevelopment Conamission
l eschedLftd .C(R ar �eeti� --May , 2007
Vii. NEW BUSINESS (Cole'.)
C. South Bead Central Development Are
(6) Commission authorization requested to
publish -the Notice of Intended Disposition
of Property with publication dates of May
I 1 and May 18, 2007 and Receipt of Bids
to be 10:00 a.m., Julie 1., 2007.
Mr. Peezkowski noted that in the past staff
ells used only the South Bend 'Fribune and
n-Co ant y News - or its publication of
notices. .H .u. t d that readership for both is
falhng. He asked if staff has considered
LISHIC, Internet advertising In order to reach �i
wider audience. Mr. Schalliol responded that
he believed the statute stipulated teat the
notification be made in published periodiccals.
Nor. Pec kowskj. asked if two periodicals is �1
111111 1-1um and coUld we publish in those and
other places. Mr. Levee agreed that we
could advertise in more than two
publications. Mr. Mks noted that in the past
we Have posted in additional places if we
think a site has broader appeal. We did that
for the Rink site and for tt w LaSalle Hotel.
"f'hc Enzyme Research site and the Art
Mosaic File site are much smaller with
more firm ted interest. Posting them on the
Int met would probablynot generate any
more interest.
Ms. Jones noted that the reason. for posting 11.1
other locatives would be to increase
marketability it rather than to meet statutor y
re Uirement.s.
Mr. Peczkowski asked if we had looked at
selling SUch property on Int m t auction sites
such as 1 � -Bay. Mr. King responded that
16
OLIth Bend Rede elopnient Commissioll
Resche lUle :1 i �1lar e tin . - - -. a , 2007
. NEW BUSINESS ONT.
C. South Bead Central Development Area
(6) continued...
we'd have to be careful to meet. the statutory
disposition process. Mr. Leone stated that he
would look into the legalities of that
suss estiotl.
1 -1pon a motion by Mr. K'1110, , econded by
Mr. Downes and un.anin ously carried., the
Commission authorized publication l.ieation of the
Notice o-f Intended i osition of Property
with publication dates of May 11 and
Liy 18, 2()()7 and R ec el pt of Bids to be
10-00 a_m., June 1, 2007.
Commission approval requested for
Resolution No. 2336 approving the Fair
1. rket Value of Property in h South
Bend Central Development Area. (former
Art Mosaic Tile)
Mr. Schalliol noted that Resolution No. 2336
I p -o �e f the f i r - value of the Art
Mosaic Tile property which consists of four
parcels located at 8 17 and 903 E. Sample St.
tax ley numbers 18-3037-1433, 18-3037-
1434 18-3037-1435., and 18-3037-1436.
l.e pay -eel is an irregularly shaped parcel
consisting of approximately 17,000 sft with. a
l ,200 sft building at 81TE. Sample St. and
an approximately 3,500 sft building at 903 E.
Sample. lie property is zoned G1 — General
Business. The -fair market value of the
property ire. an " s is 11 condition has been
deterniIned to he S 6 2 , 10 o as derived by
averagmg two independent appraisals. Staff
requests approval.
1
PLIBLIC2 "NO A -1 1 MAY
11.:' ND MAY 18, 20[ 7 ANA. i_ {I`11' ,0 F B IDs ,.F0
South Bend Redevelopment G'c mniissi.on
Rescheduled ReuLllar Meeting - - - - -M a. ' 8, 2007
. N B SINE S CC T.
C. South Bend Central Development Area
(7) continued...
Mr. Pec zkowski asked if the 21100 reflects
mostly the Va.lLie of the land, since the
buildings are offered "as is." Mr. Schalli.oi
responded that the land and buildinas may be
worth as naucli as $62, 1 . The staff had the
property appraised tl i-ce wa s: '(--LS is, with one
t)Llilding demolished, and as vacant land.
The best W -14te was with the two buildill s
standinc,.
Mr. 11ec km, -\ s1: i ash cd i f it is taff'
expectation that the buildings will be taken
down "? Mr. Schall of responded that lice is
aware of so -n-le interest in rCLUSIng the
Upon a motion by Mr. Downes, seconded by
Mr. ecz o sl i and unanimously carried,
the Commission. approved Resolution
No. -3 6 appro ina the Fai.r Market Value of
Property ill the SOLIth Bend Central
Development Area.. former Art Mosaic Tile)
(8) Commission approval requested for Bid
Specifications and Design Considerations
for property in the South Bend Central
Development Area. (former Art Mosaic
Tile)
Mr, Schalhol noted that the bid specification -s
include that the entire parcel must be
PUrchased; all proposals for the reuse of the
disposition parcel must include a basic reuse
plan for the existing buildniors and site and a
project orneline detailing aspects of the site
redevelopment, Bids must be received by
18
APPI (W INGT -1-1-]L'FAIR MARKET VALUE OF
D EV [--,, 1-0 P M r-1N -i- ARENA. i,oi .M :ri Ai ls- MOSAW.`
South Bend. l ede velopliient Coamilssioll
Rescheduled l .egL ar Meeting .----May 8, 200
6. NEW BUSINESS 'ol d'.
C. South Bend Central Development Area
(S) continued...
10 : 00 a.in., June I, 20 07.
Upon a motion by Mr. Downes, seconded by
Mr. Pec l .owsl i and Unanimously carried,
the Commission approved Bid Specifications
and Design Con siderations for property ill
the South Bend Central Dcvctopment .Area.
(foriner Art Mosaic Tile)
(9) Commission atiffiorization requested to
publish the Notice of Intended Disposition
of Property with publication dates of May
I I and M v 1 ,, 2007 and Receipt of Bids
to be 10:00 a. m, June 1, 2007.
Upon a rnotioii by Mr. Downes, seconded by
Mr. Pec l o sl 1 and unanimously carried,
the Commission authorized publication of the
Notice of 1nteiided Disposition of Property
with publication dates of May l I and
May 18, 2007 and Receipt of Bids to be
10-00 .m., Rme 1, 2007=
(10) approval requested for
proposal for consulting services in the
South Bend Central Development Area.
Mr. Schalliol. distr'buted copies of a
Po erPoint presentation from the Buxton
Group. The proposal from the Buxton Group
is to develop a community ID study for the
workplace daytime population for the Central
usine '"I trice. The scope of services ill
the propose defines a four step process for
developing the overview of the workplace
daytime population. The study being
19
C )MM1 I )N AI'l"P,('.)V I:_[) Bjl:) I' :,("If Ic:- A "I"ION .
AND DES]GN DESIGN CON H-A..�R.r -ION R)R PROPERTY TY I
THE SOL' -i-�i BE-NI.) CFIN'TRAL
ICI-_A, (I' )I MI-{I AI ,I - M I T'II -t-=)
COMMI S S 10N AUITI I() R I I'D PU!13I- ICATI( ) N 01 '1 -Iii
N [)"I+Ic 0I= IN "I-I-= .NI -)I-=I D I S POS ITI0N 0 I
PROPERTY WI I~I I Pi.. BLICA I ION DA FF OF MAY
11 AND MAY 18, 2007 ANI::) R FCFI In, oi., BIt s -ro
E 10:00 A. M., JUN] "' 1. 2007
o Ith Bend Redevelopment Commissioll
ReschedUled RC -- Meeting - -1 May s# 007
. NEW USINES (Cole'.)
C. South Bend [ventral Development Area
(10) continued...
proposed is a supplement to the one
previously supplied to the City of South
Bend and the Redevelopment Commissioll
by Buxton. ThepFCVIOLIS StUdy created a ten-
minute drive -ti. rc analysis frorll the point: of
Jefferson ffiv 1. and M'ch'oa n St. The StUdy
focused in the psychographIc profile of the
Community hVing Within that analysis area.
This new study will foc us on the
workplace/daytime pol)LILIH01-1 1111d Will
provide information that gi Il be blended. to
the larger study results. The cost of the
proposal is $1.0,000. Staff recommends
approval.
Mr. King agreed that it is a cyood idea to
analyze the workplace population. That is
the market for downtown business.
However, he doesn't see how the scope of
services defined does that. The project plan
and timeline don't show BLIXton determin111
the workday population in downtown Soutli
Bend. It says "Provide to BLI ton all
necessary community inforz .ation"' which
sounds like staff would need to gather all the
data and then send it to Buxton who would
use it to say what retailers would match it.
Mr. Scl .afliol responded that city staff will
need to do a lot of front end work, as it did
for the previous study. Staff would provide
at the front end the "parameters, businesses.,
other points of contact in the downtown
area." From Buxton's resources, they are
able to pull in information about the specific
people.
20
OLIth Bend Redevelopment `ommissioll
l esel edUled ReCrular Meeting .May 8, 2007
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(10) continued...
Mr. King responded that lie is not sure they
can do that. As an example, there are 400
people working at Press Gancy. He would
want Buxton to verify that there are 0 0
people who work there, where they cone
from, their ale, and demo raphics. Will
they be able to do that" Mr. cha-111 l
responded that they w1fl. If we are going to
o all the data gathering ourselves, how
HILIC -11 valLie is Buxton going to upp `
Mr. Schalliol responded that as fay- as the data
athenn , 01 ce Buxton has the address .for Li.
person, they can do the psycho ral:)hlc pro-File
of the employee base.
Mr. .l Downes expressed concern that
employers might not cooperate to prov.1de the
information Buxton will rcquire. He asked
for some assuran es that Buxton will be able
to collect the information.
Mr. 1'ec l o ski expressed misralvings about
the Ultimate product of the study. PcT 4-6 of
Buxton's proposal says they will pair LIs Lip
out of the 4500 retail and restaurant profiles
in their proprietary database. That loots like
an Internet dating serrrxce that we're paying
$10,000 for where we'll be paired up with
potentlal mates for our retail district. The
analogy is tnie,, especially with their
proprietary software that they are claiming is
on line. What Mr. Pec .o sl x bits problem
with is that as with any Internet datili
service, we are eventually doing to have to
sell ourselves when all is said and clone.
1
South Bend I edevelopnient Coniniissio
ReschedUlcd Re(JUlar Meetin —May s, 2007
6. NEW BUSINESS (CONT.)
C. South Bench Central Development Area
(10) continued...
After all is said and done, if we recd to be
handheld by these guys, they are quoting an
hourly rate of $200/hr. That seems
incredIbly excessive.
Mr. Schalliol noted that the city has wor e (l
with Buxton over several years and has not
iiIeurred any additional costs. Th.cy came in
for a fanta. s tic pres ent ation the other day at
no east to the city. We have a very good
reIatIonship w1 th them. If we nee d add 1 t I o n a I
materials, if;we reed additional work, then
we'd Probably look at are additional fee
tRicture with the m. But at this 0.111c e1)Ve
received tre-niendoes value from the initial
proposal and ht- en't 111c' rred additional
clare.
Mr. Schalhol suggested tabling this item ill
order to provide Commissioners wAb more
in- Formation about how this survey WOUl.d be
accomplished and what Buxton's role will
be.
Upon a motion by Mr. King, seconded by ITEM TABLI.r
Mr. Pec l o sl i and unanimously carried,
the Commission tabled . toy . 6. , io .
(11) Commission approval requested for Lease
Renewal with LePeeps Restaurant.
(Michigan St. Shops)
Mr. Inks noted that staff` recommends a Five-
year renewal of lease with LePeeps,
restructuring the rents under the lease as well
as incorporating some adjustments that have
22
SOUth Bend C edevelopti-ient Con-imis ioll
Rescheduled Re ula.r Mcetln -May 8, 2 07
. NEW USI N F (CONT.)
C. South Bend Central Development Area
(U) contintied...
been made to the billincys with LePeeps over
the last 12 months. There were some 2005
CAM reconciliation char es, over 6,00 ,
rnaint l ance charges of about $70, some
minor plumbina char es of S278, some rent
r d CAM charcyes repre er tip jU.st under
two months of rent and `Alm_ Those items
have all been billed and total LIP to $13,000.
There are additional charges that have not
[�cerl N 11C(1, I)ILMIN11cy cl ar es of a.11 ost
S-3,800, and estimated 2006 CAM
reconctl.iatlon. charges, including property
taxes o f aln-lo t $4,000 for a total of almost
S 2 1 , (.. 00. W i th i n terest amortize d over the
tern i of the lease the interest would be 37
1 r a total balance that reeds to be amorti zed
Over this new lease of $24,540. That will add
,S377. 55 to the monthly ly l ease payments. ts. The
lease payments will therefore be about o%
hl,cyher than they cuiTently are. I believe this
leas been discussed with LePeeps. At this
Point we reconiniend approval. GIven the
size of these charges and the short period of
time in which they have been incurred, we'd
file to provide are opportunity for :Le eeps to
pay these over a new five -year' lease term,
Mr. Pec ko vsl i noted that this is
delinquency breakdown. The amortization is
for 5.4 yrs, so we are actually exceeding the
length of the proposed contract. He asked if
the .4 1s coming off the front or off the rear
LD
of the lease.
Ms. Aggeler responded that Beeps' cuirrent
lease expires October 31, 2007. That is the
23
South Beard Redevelopment C'ommission
ResehedUled Re Utlar 1 eetir - - - - - l May , 07
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(11) continued...
additional four months. The new lease
extends the er €rrent lease five years by
beinnning now and rL111.11.1ng five years, four
months.
[..Jpon a motion by Mr. K111ty, seconded by
Mr. Downes and Unanimously carried, the
C.ommission approved the Lease Renewal
with .Le.peeps Restaurant. (Mich.1gan St.
1.10ps
D. Sample-Ewing Development Area
(1) Commission approval requested for
Resolution No. 2337 determining the
Commission's intent to pay certain
expenses incurred for local public
improvements in or serving the Sample-
Ewing Allocation Area (South Bend
Allocation Area loo. from the Sample -
Ewing Allocation Area (South Bend
Allocation Area Noe Special Fund.
Mr. Inks noted that Resolution No. 2337
establishes a public hearing Oil June 1, 200 7,
10:00 a.m.. to appropr #mate funds recently
received from A.J. Aright as penalties for the
lack ofJob creation oil the Project. The
amount to be appropriated is $239,993.
While the description of expenditures
attached to Resolution No. 2337 says it will
be appropriated for public improvements, it
will be putt into two categories; $25,000 for
demolition in an area just to the north of the
Southeast Neighborhood Park (across from
Art Mosai.e Tile) where we have been.
4
W114..1 LF.Pl. "'E".I} 1.. "'."s TAI.lRAN'I". ](1.1RiAN ST.
l-lor's
South Bend l .edevelopm ci—it 'onimissloll
Rescheduled Regular Meeting ...-..May 8, 200
6. NEW BUSINESS � . NT.
D. Sample-Ewing Development Area
(1) continued..,
gathering property and demolishing buildin s
to eventually transfer to the Park Department
for an expansion of the Southeast Farb.. we
own a vacant property there. Glven the
vandal.isni and Some of the other issucs with
OwIlingy vacant properY ty, it would be wise to
demo that property. The remaining $215,000
would be used for debt service payments on
the indebtedness of the Sample --EwXn
Development Area. This has been discussed
with the 'mitrol ter who has agreed to this
use of the funds. we have checked l with
bond COLHI el to makc sure how the penalty
mone y from , ..f. WrIaht should be treated,
since that project was a bond project. fond
counsel has indicated that it would be treated
life any other General Fund money and can
be used for any purpose.
Ms. Jones asked if that amount 1s sufficient
to cover debt service obligations. :fir*. Inks
responded that there may still be a shortfall.
~here was to be aboLrt $300,000 that needed
to be picked up by the city's capital budget
this year. Mis will reduce that by about
$oo,000.
Mr. Peczkowski noted that lie and Ms Jones
were at a meeting last week where there was
d.i crrrssi.o.n of including this area in the
Airport TI ' district. He wanted to know how
would this affect that discussion. Mr. Inks
responded that it WOL111d not affect those
discussions.
25
Sor_rth Bernd Redevelopment Coninii sior1
Rescheduled l e ula.r .Meeting .....May 8, 0(
6. NEW BUSINESS (CONT.)
D. Sample-Ewing Development Area
(1) continued...
Mr. pee kowsk] rioted that we do socni to be
admitting that this area is not able e t pay its
dept service ----it's a losing proposition. Mr.
Inks responded that the city has spent a lot of
time braying property, demolishing property,
taking assessed va]LIC temporarily off tyre to
rolls until we can create industrial parks,
create new buildings, and, hopefully, add
more assessed value than what we took off.
At this point it does lia c a ne ative real
proper. -ty increment and cannot niece its debt
service requircmtints by itself'.
Ms. Jones asked i i' most '_1'TF areas is llo w this
pattern. MF. Inks responded that they do.
Mr. Laurent noted that SEDA is the only TIF
area that is primar =ily old industrial property.
In the beginning the city has to part a
significant aniOUnt of money ire. The return
on the city's investment is at the end. The
city's money has to go in first.
Mr. Irks noted that Erskine Village was
brownfield site with the landfill off o.f West
Ireland. The cycle was much. quicker dowry
there because there was a developer in hand
at the time we were taking care of the site.
Buildings were acquired mostly by the
private sector, then demolished; assessed
value was lost, but folio Ing right on the
heels of that was private sector investment
that vastly surpassed what was last In the
demolition there. This was a much qUicker
time frame, but what we are doing in SEDA
will follow that pattern.
26
orxth Bend l .e levelopniciit Commission
R schedule l RegUlar Meeting - -- -May s, 2007
6. NEW BUSINESS of d'.
D. Sample- Ewing Development Area
(1) continued...
Ms. Kolata noted that EDA has a lot of
residential properties in the Southeast
Neighborhood and Rum Village
Neighborhood. It is possible that sonie ofthe
tax legislative that has beell given to home
owners has had a nccyative 1111p�xct as well.
TIF is based on net assessed value, not dross
assessed value. when the state l.e ] ICature
gives a homestead credit, the legislative
Challaes impact what each Individual
property owner pays and that also tales down
the total assessed value of the area. The
s, emie thincy happened M the West
Washi ton area.
.s. Kolata agreed that when you have a
large indUstrial project like S'EDA, your costs
are higher, and you can't start to develop it
until you get the cri.tieal mass of bare land.
Mr. Pcczkowski noted that SEDA. has been a
development area for fourteen years. Has the
assessed value ai vays been aoing down')
Ms. Kolata responded that the assessed value
of the real property has bccn marginal the
entire time.
Nor. Peczkowski asked if our predictions
were overly optimistle. Ms. Kolata
responded that, no, this is the only TIF Area
in the city that also collects personal property
increment. That personal property increment
is what has been providing the 111colne all
along. The personal property income is
basically the ethanol plant, thC Coe plant
next to it, and TJX. The real property has
7
oLit h Bend l edcvclopm ent Commissioll
ResehedUled Re CF ular Meeting - -May 8, 2007
6. NEW BUSINESS (CONT.)
D. Sample-Ewing ing Development Area
1 continued...
been marginal all along, stemm Ing fx-om the
demolition of large bull ill s.
Mr. Downes made a motion to approve
Resolution 'No. 2337 determining the
,o11 z11I s1o11's intcnt to pay certain expenses
111CUrred for local public improvements in or
serving the Sample-Ewing Allocation Area
(South Bend Allocation Area N& 8 from. the
Sample-Ewing Allocation Area oLith Bend
Allocation Area 'loo. 8 Special F Und. Mr.
King seconded the motion the vote was three
in favor. Mr. Peezkowski abstained.
(2) Commission approval requested for
Resolution No. 2338 ratifying, confirming
and approving an escrow termination
agreement related to the A.J. Wright
distribution center project.
Mr. Inks noted that in order for the city to
receive the funds from the penalty
requirements under the AT Wright
agreement, an escrow was set up as a
performance guarantee on the project. Our
mollies were to come from that. At the last
meeting the Commission approved all the
documents necessary to affect that
transaction. There was an escrow
tern,unation a reement that was re u red.
Cheryl Greene executed that on behalf of the
701111/11 slon to allow for the release of funds
from the escrow account. Resolution
No, 2338 ratifies, confirnis and approves her
execution of it on behalf of the Co m.m.issIoo.
-`(_)1 1 M 1 SS 10 N PPIZ VI`i F_ oI._1~.JT]0 N No.
1:)1:= ..1.1: R M 1 N 11 (.1 - FI IF- C (roN1l S s10 N'S 1 N "]" EN F T'0
P.AY (1 1- R] -A I N t..- XPI:1- N S 1.--S I NCU R R E1. 1` R LOCA L.
I'IJt:1I..K' I [VI 1:1 .)fir'E.1`1F N FS 1 N 0 R S F'RVt N G ,1 -11F
. � AREA 11 A PI : - F'.�1� _; 1.1. ( 1
BIND At-LOCATION AREA No. mom 1 ��
( 1 11'1..- 1'.- EW1N(- ALLOCATION Ai EA (Sol- r1 -1 -1
I. 1 Ai- J_0(:'ATION Al L,A No. SPECIAL F'LFNE),
oLlth. F eiid Redevelopment Commission
es heClUled RCCYL11ar Meeting .-..-May 8, 2007
6. NEW BUSINESS (CONT.)
D. Sample - Erring Development Area
(2) continued...
Mr. Kincy lade a motion to approve
RCSOILItion No. 2338 ratifying, eofilin
and approvina an escrow termination.
agreement related to the A.J. Wright
distribution center project. Mr. Downes
sec oiided the motion. The vote was three to
one with Mr. Peczkowski opposed..
(3) 'oni issiou approval requested for Fire
Watch services for property in the,
Sample-Ewing Development Area. (41.0 W
Sample).
Ms. l'o 1 at i tioted th,'11 StUdebaker Auto Parts
Coij oratlon Is the tenant in tl7.e buildincy at
10 W. Sample, o tied by the
Redevelopment Commission. Staff solicited
a proposal from Gene Mil olajews .l to
provide fire watch set-vices at this building on
an interim basis. The proposal is for 13 hr
per off;fieer fog- a not to exceed amount of
71500. The rate for using off duty firernen
WOU d be 1 .64 /hr or more.
Ms. KoIata e pIalned the reason for needi
fire watch. The fire department detemilned
that the sprinkler system is not working
properly and is Wt Up to code. This was the
result of a small fire that occurred in early
March. Some of the sprinkler leads trickled
water instead of gusbing water. The system
needs to be flushed, drained and certified by
a licensed sprinkler company. In order to
flush the system, flushing valves need to be
installed. The S A C o lease requires
SASCO to meet all fire code requirements;
I ATIFYI G, CONFIRM ING AND APPRO IN(_) AN
I��s(�'I� (��'1+ "IT.-R �I1�1r�'�ION GRF'E;v1F_`NT R.F_ ._A'1 . �.)T0
PI c.�JFC -1,
South Bend Redevelopment Coninussion
esch did ed Reaular I cct i ng - - - -. -May 8, 20
6. NEW BUSINESS ONT.
D. Sample -Ewing Development Area
(3) continued...
however, they were not able to proceed with
the fire watch due to monetary reasons. Staff
deters- Wined that there was an emergency in
that either the bUjIdIna had to be shut down
or the fire watch had to begin. Therefore, we
started the fire watch service on. April 12.
.
'Fhe fire watch tales place while the building
is occupied, which is basically :00 — :30 or
hours a week. There was an additional
1-11-c watch o f'l:i ccr- present over the past
weekend Whell OIC StUdeba er Parts meet
was in town and they had longer hours.
SASCO leas UIItII M4-Ay 3 to get additional.
proposals for li iiig the sprinkler system.
However, since April 12 they lave hooked
the sprinkler system to a monitoring system.
We are asking to continue the Fire watch
service for a not -to- exceed amount of $7, 500
whIle we work with SASCO to deteniiine the
best way to get the system fixed.
The Fire dept makes the point that the fire
watch makes the system - p to code, but it is
meant to be an interim measure. The fire
department wants a date by which the work
will be done, who's going to do it, and how
long it's going to tale.
Mr. l ee l owsl i asked how long the $7,500
will last. Ms. Kolata responded that it costs
about. wl .. The intent is not to pay all
of that out, but to buy some time to work out
another solut.1011.
Mr. Pec l owsl i asked if we intend to get
reimbursed by SAS o. Ms. Kolata
30
OLIth Beiid l ede velopryietit Commissioll
Rescheduled Regular Meeting ....May 8, 0 7
6. NEW BUSINESS (CON'r.)
D. Sample-Ewing Development Area
(3) continued...
responded that it Is L11111kely we will be
reimbursed. SASCO has indicated it does
not have the resources to do this repair.
.lthOLI h the lease assigns re po sibility to
A.SCO, it is the Commission's buildIng and
it se IIIs l rLident to protect it In this way.
Mr. Peczkowski r sp sided that we seem to
be accommodating SASCO through its busy
season, the parts meet. Ms. l olata
responded that we are ac coii,i modafin .
ASCO at this point so that we can male a
determination o f' how this i l be corrected.
Mr. Peczkowsk.1 asked If 01-11- $7,500 simply
buys SA.SCC the time to het tts biggest
revenue of the year dUring the swap meet,
then SASCO will close with the extra cash in
hand. Ms. Kolata responded that he may
decide to not e 11tillUe in business, but if he
does, it will probably be sooner than 6
months.
Mr. Kina expressed misgivings also about
this solutlon. It's OK to protect our asset, the
buildincy, and approve for the shortest
possible time this fire watch. We're stuck
with that. He sees th..Is going nowhere. The
city wont get reimbursed, SASCO won't be
able to pay for the sprinkler system file he
hasn't been able to pay for fixIng the roof
and a whole variety of other things. Mr.
King does't want to be faced with the
requirement to spend a lot more money for
what is clearly a losiligy proposition. It seems
totally senseless to get into a money pit
31
SoL1th Bciid Rode v lopment 0111l11Is iol1
Rescheduled Regular Meettn.g .... -May 8.,2007
6. NEW BUSINESS (CONT.)
D. Sample- Ewing Development Area
(3) continued...
situation with this property. Mr. KMg said
he was OK. with approving the fire watch, bUt
arced staff not to come back to ask for the
Commission to pay for the sprinkling system
or any other item for this bufldlng. He pLit
staff on notice that lie won't vote for it.
Ms. Kolata thanked. Mr. King for makIng that
clear-. It wifl. be easier to be fin ii at the
meeting with ASS _. next week.
Upon a motion by Mr. Kings seconded by
Downes and U.nan1111.0Usly carried, the
Commission appro vcd tl-1.c rcgLicst for
proposals and ratified the sta f ;f." s action to
secure Mil o.la' wsl .i & Assoc' ,cites for fire
watch services for the scope of services and
fce proposed,
Mr. Abarb hell asked way the Col .mission
doesn't evict SASC O or pursue damacres
against it Ms. Kolata said that will be part
of the discussion at the meeting with SASC O
next week. The fire watch is an i te.ri.111
measure.
(4) Commission approval requested for
Assignment of Lease with J & L
Management Corporation from Norfolk
Southern Railway in the Sample -Ewing
Development Area.
Mr. Laurent noted that the Redevelopment
Commission ion b came the owner of the seven
acre jigsaw puzzle piece in Studebaker Area
A. formerly owned by'Norfolk Southem, on
32
COM MISSION A €'PR(W ED € 1.11= R U. I "I € TO1
P1 ON) A LS AN 1) 1 ATIY -11 1)1-1.1 F �TA €:•F AC'11()
V0 €"O.11 1. 11 .)1_..} .11:'L SKI � ; Asso�:IA TI €`01'
FIRE, WATCH SERVICES FOR 'ITIL: SCOPL. ()Y
€:_� AND FEE PRO1'OSLJ)
South Bend Redevelopmcnt Com.missioll.
Rescheduled l e lv� ar Meeting - -May , 2007
6. NEW BUSINESS (CO NT.)
D. Sample-Ewing Development Area
(4) continued...
April 25. An Assignment of Lease was
produced at that closing from Norfolk
Southern to the Redevelopment Commission
of a lease with the city's demolition
contractor :For the Stamping Plant, J & L
1 anauement. Corporation. They are l as] [10
from Norfolk Southern a 20 ft strip of
property to have a construetion trailer and
stage some equipment, etc. That lease was
e scut d on February 1, �. 06— T ;lies IS ('III
assicrnment of that lease from i orf011
Soru[tl eM to the city. It 1s a standard
landlord-favorable lease_ Staff reeommei -ids
approval.
Mr. Leone noted that this is not only an
assignment of the lease from Norfolk
Southem to the Commission, but also an
acceptance by the Commission of the
Norfolk Southem obligations. Th.erefore, the
original lease should be pail of the
Commission's record. As Mr. .Laltr nt said,
it is a typical landlord-favorable lease. There
are no unusual provisions that cause any
problems.
Upon a motion by Mr. King, seconded by
Mr. 'Downes and unanimously carried, the
Com issi.on. approved Me Assignment of
Lease with J & L Management Corporation
frog.. Norfolk Sonthem Railway in the
Sample-Ewing Development Area.
33
L :ASS= wrni J& L MANAGEMENT
' Or PORA]"JON FRo r NORFOLK SOUTHERN
AHW, Y IN `ITIE SA PLE -EWIN G
DEV 1;1.0PM N'r AREA
South Bend Redevelopment Commissio n
.l eschedUle l l e L1lar Meeting -May 8, 2007
6. NEW BUSINESS (CONT.)
E. Airport Economic .Development Area
There was no business in the Airport E onom..ie
Development Area.
F. South Bend Medical Services District
'I'li re was no bLISi.ness in the South Bend Medical
Services District.
G. West Washington-Chapin Development Area
1 Comml*ssion approval requested for
Stibordin.ation Agreement for property
located at 128 LaPorte Ave., -1.32 1.."a
Porte Ave., 136 La Porte Ave., 902 Colfax
Ave, 90 Colfax Ave. and 910-912 Colfax
Ave. in the West Wa i tol - Chapin
Development Area,
Mr. Sellers noted that Dunbar Corners is
being refinanced t i '-ough .�..l��l . .�.. is
requesting the City of South Bend sign the
Subordination Agreement concerning a
Rctital Rehab note that the city extended to
Dunbar Corners as part of the initial f tndilh
.for the protect. The funds were Community
Development Block Grant funds. MFB is
refinancina a Standard Federal loan.
Upon a motion by Mr. Icing, seconded by
Mr. Downes and unanimously carried, the
Commission approved the Subordination
A reel ent for property located at 128
La orte Ave., 130 -1.32 La- Porte Ave-, 136
LaPorte Ave., 902 Colfax Ave, 906 Colfax
Ave. and 910 -912 Colfax Ave. in the West
Washington-Chapin Development rea.
3
COMMISSION APPROVED THE SUBORDINATION
A l r.MLNT FOR PROP1=fRT LOCATF -1) Al" 1
LAPO RTE AV E., 130 -132 LA OR-1 -F AVM , 136
LAPoRTE Avr., 902 COLFA Avl -'l 906 COUAX
AVE. AND 910-912 COLFA AVE. IN -rHE 1:��
�
A lNGTON- CI-IAPi Dr-vr.LOP11 ENT AREA
OLItl l erid Redevelopment Commissioll
f eschedU l ed erUlar Meeting n -.---May S, 2007
6. NEW v 1 U 1 N E (CO NT.)
H. South Side Development Area
(1) Filing of Resolution No. 2334 amending
the South Side Development Area
Development Flan and setting a public
hearing on Resolution No. 2334 for :00
a. m., June 1, 2007. (4225 S. Main' St.)
Upon a motion by Mr. Downes, seconded by
Mr. inn- gild LIM- 1.111mously carried, the
Co1.1:1111.i sion accepted for filing esolutio l
No. 2334 aniendincy the South Side
Development Area Development Plan and
SCU1110 . )LI -HI h[1arni on. Resoltiti011
o. -3:34 f�Or 10:00 a.rn., . L111e 1, 2007. �4225
S. Main. St.
1. iortlie -ast. Neighborhood Development Area
1 commission approval requested for
proposal for professional services in the
Northeast Neighborhood Development
Area. (Survey, .NN"DA boundary change)
Mr. Sch ll1ol distribUted an overview of the
Eddy Street Commons project and other
projects proposed for the Noftheast
Neighborhood Development Area NN' A .
Eddy Street Commons is the first phase of
many projects that will be done in the
NNDA. The developer will build a retail
corridor along Eddy, a full serviee hotel, a
fimited service hotel, new office space, and
new residential on twenty -five acres fronting
aloncr the new Angela Road and Eddy St.
These fOUr itenis on the acycnda for the
NN-'DA relate to the carving out ofanew TIF
district f'x-om the existing TIF district in the
NN A. The new allocation area will be a
3
COMik-IISSK)N ACT11]"ITI) FOR FILING
Ri.. ( i -i �����0 No. ') A l)_ NDJN(..; TF1L- SOUTH
AND l:,l.TIN(.i A PUllLI(.. RIN(x (.)N
R.]:, S 01- t..?TI0N No. 4 FC) R 0. -00 A. M., JLJN1-- 1.,
SoLith Bend Rede vclopm ent Comnilssioll
ReschedUled e Ular Meeting ..__._ clay , 0
6. NEW BUSINESS (CONT.)
1, Northeast Neighborhood rh Development Ar
(1) continued...
rt-esidcnti �l TIF �` listrict. survey services
are needed to write the legal descriptions of
the two TIF districts: a new lc al description
for the residential TIF and a revised
description l7or the remaining TIF district.
Thc proposal is rom Lamy li ency
. soci,ttes for a fee of S500.
Mr. Schalhol. noted that the timeline for
coniffle -ti n of heels related to this project is
very condensed bec -aLIsc the development
aareemcnt between Kitc and l 'otre tame
requires Kitc to begin work- on A.UgUSt I .
r1,11c city needs to have e-Al l of its public
processes conipleted before the August I
date as well.
'Mr. Peczkowski asked if making this a TIF
district is the only way to accomplish this
project_ Mr. Scl alliol responded that the
N'N"DA is already a TIF allocation area. State
law allows for the collection of residential
increment. The residential and commercial
TIC' working together will create fundin. g and
resources to be able to bond for the public
improvements related to this project.
Mr. Icing noted that this does not include
only the Eddy Street Commons. It Includes
the "'triangle" area that is being redeveloped
by the Northeast Neighborhood Revita-
lization Organization.
Mr_ pec kowsl i asked to see who the owners
are of the parcels shown in proposed
residential TI. ' area. Mr. Sc alliol responded
36
OLIth Bend Rede elopnient Coniiiiissioll
Resc hedUled . e t_tl ar Meeting . -May 8, 2007 .
1. Northeast Neighborhood Development Area
(1) continued.
that ownership in-fomiation is required d urm
the process of dcclaritig the new IF area.
That will be includcd in a packet the
'oiT.i fission will receive for the June 1
meeting.
Jpon a motion by Mr. I'.in , seconded by
Mr. Downes and unanitrlously caiTied, the
Commission approved the request for
prop s:r_-d and a-ccepted die proposal fi-oni
Lang .Feeiiev &,, Associates I.-Or the scope of
services and fee proposed-
(2) C approval requested for
proposal for financial consulting services
in the Northeast Neighborhood
Development Area, (Eddy Street
Commons TIF
Mr. Its .noted that this proposal is for
financial advisor- { set-ViceS with Crowe
Chizek and Company LIX. They would. be
work-In work-Ing with staff` to structure a TIF bond(s),
looking at financing alternatives, planning
and financial tFLIC 11-in , disclosure and
presentation is Lies, the sale of the bond,
closing of the bond, etc. The total fees would
not exceed S 351000 PILIS OLIt of pocket
expenses not to exceed $3,500. The
Controller has reviewed the proposal and has
authorized it to conic before the Commission
for consideration.
Mr.'Peczkowski asked if approval by the
Controller was necessary. Mr. Inks
responded that recent practice has been to
COMMISSION :'H='E'RON.. "I' -I-IIF. R F'Q(,!;F.'ST I; _ }I
PRO1'0SA1, AN1) ACC F, IF 1'I O PC) SAI.- FROM
1, AN ("i F F- N Fi Y & Assoc I ATF FO R'FFII`_ sC OPE C) I
SERVICES AND FT-TI. PROPOSF-l")
South Bend Redevelopment Commisslol7
Rescheduled Regular Meeting May , off_ 7
. NEW BUSINESS (CON T.)
1. Northeast Neighborhood Development Area
(2) continued...
take all of these types of financial
considerations to the Controller for review
before bringing them before the
Redevelopment Commission- In partieL l .r,
since this is related to a potential bond, the
Controller has PL11-Vie.%v Over that.
Upon. a moron by Mr. King, seconded by
Mr. Downes and unanimously carried, the
milli sion. approved the i- eclHes o1-
proposal for financial c:onsultI110 set-vices HI
th.e Northeast Neighborhood Development
Area and accepted the proposal f'roni Cro w
ChIzek and Company Lil..,C for the scope of
services and fee proposed.
(3) Commission approval requested for
proposal for financial consulting services
in the Northeast Neighborhood
Development Area. (Northeast Project
Economic and Fiscal Impact Analysis)
Mr. Inks noted that this proposal will assess
the community benefit: of the Eddy Street
0111DIons project. As staff moves forward
nc oti.ating an agrecment on the level of city
participation, we would like a better- Feel. of
the ben. is to the community. This study
will hclp in that regard.
This study will cover direct and indirect
impacts durir the construction phase, along
w1th. the analysis of continuing operations of
the various retail, hotel and residential
project. The total fee is for hourly services
not to exceed $ ,00 , plus an amount not to
_,ONIMISSI . N f tiPPRO Fk.�1.
FRVK'F, IN THE NOR 1411-. 1- T1-1'1(rI IBORIIf)0D
I)F. AND I-111
PROPOSAL FROM CkMVE- C."[11/1--K z--\ l) .J)1\, -1PANY
LLC F0 R - 1 -1 -1E sCOPE 0 F S 1`.:R VICI -I' AN1) 1- -1 F"
PROPOSED
SOLIth Betel Redevelopr ient Conimissioll
ReschedUled Re u ar Mctir ......May , ) e
i. NEW BUSINESS (CON'r.)
1. Northeast Neighborhood Development Area
(3) continued...
exceed S5,,000 for out of pocket expenses.
The dc eloper, Kitc Rcalty Group, has
agreed to pay for one half the cost of this
analysis. So while the city woUld have a
contract for S25,000., it will be reinibursed
S ?,500 by Kite.
Mr. Pcezkowski asked why Kite Would not
pay for all of the study' ]ding responded
that the developer is of to b asking foi- �1
parking ar�a e and other city 111 :stnicil L
The city necds to know this information as
well a 'Kite.
Mr. Downes nude a motion to approve the
request for proposal for financial consuln'll
servi.ces in the Northeast Neighborhood
Development Area and accept the proposal
from Crowe Chizek & Company fur the
scope of services and fee proposed. Mr.
King . seconded the motion. The vote was
three in favor. Mr. Pec l owsl r abstained.
(4) Commission approval requested for
proposal for consulting services in the
Northeast t l ei h orhood Development
Area. (Legal services, Revenue Bonds)
Mr_ Inks noted that Haber- & Daniels has
submitted a proposal to provide bond counsel
services related to the TIF bond that will he
ISSLIed for the .Eddy Street Commons project.
They will assist in structuring the bond,
working in close association with the city's
financial co . UItant in obtaining credit
enhanccmentg the preparation of resolutions,
39
PROPOSAL FOR FINANCIAL CONSUL'I"ING
DEVEL OPME,N -i. AREA AND AC( ' � E, PT T1
PROPOSAL FROM C ROOF C HIZK &I COMPANY
F(-.)RTHJ_v SC'0PE OF SERVICES AND FEE PROPOSED
ED
South Reed Rcdevelopnient Commissioll
escheduled e�War Meeting - -Ma , 0
i. NEW BUSINESS (COIN.)
1. Northeast Neighborhood Development Area
(4) continued. - .
ertlficat Y closin .
documents, transcripts,
make all required filings with the Internal
Revenue Service and other services as
described in the cngagement letter. In
addition to bond counsel. services, the
proposal also includcs assistance in the
do i -natioii of a housing allocation area
which will be the basis for the issuance of the
bonds. They will also provide services :for a
Memorand-uni of UJnderstanding and
D velopnient Acyreement v.11h Kite Realty
Group. The total fees are not stated in the
ellcyaluement letter. Staff proposes to bring
bacl� a budget for these services at the iiext
meeting, However, this project needs to
OTIMILie to move forward t meet the t1 alit
time line described earlier. The City
Attomey's office has signed off on using
.Baker & ' aniels as bond counsel. The City
Attorney's office, under state law, has
responsibility for raking the deci.sio'll 011
who to usc for bored counsel. Staff
reconi m nds the Commission accept the
Ent,iragement Letter and have staff bring
budget to the next meeting.
Mr. Peczkowski asked how .many loyal
offices were contacted to submit Engagement
.letters. Mr. Leone responded that bond
counsel wofl( is hi hly'spe ia.li ed. The
Commission tries to use local fires if it can.
The. - are really only two firnis based in
South Bend that have abilities in this area,
.Bat -ties & Thomburg and Baker & Daniels.
Staff spoke with both and determ.1ned that
Baker & Daniels was the preferred firm
4
South l encl Recl velopment C.om missloll
l esche l Uled e Ul ar M eeti May , 2007
6. NEW BI-ISINESS (CONT.)
1. Northeast Neighborhood i Development Area
(4) continued...
because ofthei.r expertise.
Mr. Downes made a motion to approve the
reqUe.St for proposal for consulting services
in the Northeast Neighborhood Development
Area Jnd to accept the Letter of En a emcnt
with Bakcr & .Daniels on the condition that
staff` briniCT to the May l n .eetin budget
for exact services required. Mr. King
seconcled the motion. The vote was three to
one with Mr. T ee i owskl opposed.
J. Douglas Road Economic Development Area
""'Here was no bus ncss in th .Douglas Road
Fconomic Development Area.
K. other
Commission approval requested for
proposal for financial consulting services.
Mr. Inks noted that staff solicited and
recelved a proposal from Crowe Chizek &
Company L C for financial consulting
services. There are two pieces to this
proposal. The first is a neutralization study.
Currently the assessed values in St. Joseph
Counly are being adjusted for trendmg.
Trending is a form of reassessment. Under
state law there is a neutralization process for
TIC' based assessed values. We would like
Crowe Chizek do those rieL €(Tali ation
calculations to ensure that as this trending
reassessment moves forward, the base
assessed values in the TF are treated
41
CO M M IS S 10 N APP1 O V F-'D -1-111 RHQU 'F 1~O
PROPOSAL F-OR C.'ON U1.--1`ING I.AVICT, I1 "FF1E
:'' : f ,11 1- ..I.,{ 1.1: _l., 1'111 - TA' --'F1 -E 01:
[':'.'.N (I ".I 111 BAK I:1 & DAN I1- =1 -s O
CONDITION THAT TA1 -11 i:3R1N(i TO "YHF'. MAC' I
A BUl GE. ".1. FO E AC_.I.. SERVICFS
1 l"QU11 E1.
South Bend l edeNeelopment ''oimmssioll
e chedUled R.:gUlar Meeting ......May s,
6. NEWBUSINESS (CONT.)
I. other
(1) continued...
correctly and a j usted properly in accordance
with state lay.. The se and part of this study
is a comprehensive analysis of all TIF Areas
that we have currently to verify that all
parcels are in each appropriate TIF area.
'Fliese areas undcrgo ch Ang s fi -om time to
time_ The changcs arc COMM nicated to the
Auditor's office, but invariably, there are
s0n1 col11x1ILrr11catron issues and staff Ys
tr µdel .1r1(_:1 PI-oPellies Hiside a TIF arc�a that the
Auditor's NI"ice does not show in the 'TIF
area. rl�l�is study will liclp .identify those
ISSUCs wid iiiake SLIFC all the properties that
shOUld be there are crc.c~ounted for. Crowe will
also revie w and ma-ke recommendations on
any TIF areas that need to lac amcnde d dire to
a reduction in TIF caused by reassessment or
treziding and perfonii an analysis of the
impact of appeals after reassessment. ent. fThe
impact of appeals was a l ig iss'Lxe for the
Commission after the last reassessment
where. We 1110Lrght we lead a positive real
property increment, but it became a negative
increment after appeals were completed.
Crowe will also review the CUrrent status of
any personal property TIFs. As Ms. .l .ol to
mentioned earlier, we have three taxpayers
contributing to personal property TIF in the
Sample-Ewing .l evelo client Area.
Mr. Pec o s.] noted that the fee is not to
exceed $30,000, plus a possible $5,000
Incidentals cost. He asked .1f this is
corpetitive9 Was Crowe Chizek part of a
bid process, or was this not subject to that;
.fir. Inks responded that professional services
South Bend Rede relopnient �01111111SSio11
Res hedUled Regular 1 eetin ....1 May 8, 2007
6. NEW BUSINESS (CONT.)
K. other
(1) continued...
are not rcquired to be bad. The C:`ommissioll
has done a cumber of projects with Crowe
Chi el . They ha ve a lot of the base data.
Mr. r. In s feels it WOUld be most efficient to
conti.nue working with Crowe Chi el . Staff
has a h.1 ah dcor e: of com -f ort xvlth their work.
1r. Pelovski Doted that there seem to be a
lot of contracts with Crowe Chi ek. He
asked if we a sun-ie that their b1d is
eompetit.1ve be caLISC they have our data
alrea.dy`� 'Have we looped outside the c1ty for
financial eonsult�ints? :fir. Kino responded
that this is highly specialized work. There is
another fin i in the enera.l area, nibaucyh
Associates in Goshen', which does this kind
of work.
Mr. Pee zkows i asked if there was any
demand that we use a local agency. There is
not.
.fir. Downes made a motion to approve the
request for proposal and to accept the
proposal of C,rowc Chizek and Company,
. LC for the scope of services and fee
proposed. Mr. King seconded the motion.
The vote was three to one with Mr.
.
Peelovsi opposed.
(2) Staff report on new open Door La
requirements on SEA 10 — Serial
Meetings.
Mr. . eone .Doted that the Indiana General
Assembly passed Senate Enrolled Act 4 1
4
COMMISSION APPROVED T1--[F- [� [-"Q IJ F"ST 11-OR
PROPOSAL AND TO
'PROPOSAL 01: -`
_ WE l--1 i � AND `O 1P A N Y.
L LC
COPE or SLR ICE' -S AND FEE PROPOS -D. MR.
KING SEC ONDEF I-11E iMC TloN. TFIE VOTE WAS
THREE To ONE WITF1 MR. PEC7-KOWSKI OPPOSED
oLIth Bend F edevelop-nient Commissioll
Resched pled RegUlar .M eting .....May s, 200
6. NEW BUSINESS (CONT.)
K. Other
(2) continued...
which prohibits serial meetin s. All of South
Heed's boards and commissions will be
bound by this ne w act. The effective date is
July 1, 2007. He will research moi-e about
how this will affect 'omniissioners and how
individual Conimissioners niay speak with
each other outside of njeetin s w1th respcet
to Coni.miss.lon business. He will report his
findm s at a later meeting.
7. PROGRESS REPORTS
'Mr. Inks noted that Mr. Schaf liol did a. pi- esentaaion with t EPOR -l"
BLI tors. People are getting ready to attend the
eoniniercial real estate conference 1n. Las VeLyas. A lot
of real estate dews are done there. We Used the
information that we had Buxton prepare about a year
ago in preparation of that presentation, with some
updated infoni ation as well. Mr. Schalhol will tell the
Commission more about that at the May IS nwe tin g.
We also wanted to tally abOLIt the nul ions of dollars and
hundreds of square feet of new development on the
South Side. Thcre has been vast retail development on.
the South Side.
Mr. Eric A.barb neil asked peniiission to address the
Commission. There was no objection. He resides at
1 14 E.lndiana A ve.: m noticing a disturbin trend in
, 1 y, toward s t
the on i sior just from �atcb a
sup ortina, trying to throw money at businesses and
using government to help support businesses. The
youna lady that was sittincy here was asked a direct
question. when slie said "YOU need to do this for LIS t
sae us competitive" "is it govemrnent's job to make
business competitive?" Her flat out response was fcno >�
and then the Commission voted to give tax abatement ill
4
SOLIth Bend Redevelopment Cornmissioll
Rescheduled e dar .Meeting ....,May 8, 2007
7. PROGRESS REPORTS (CON'r.)
order to male the business she represented competitive.
I think you are going along a very can Brous track here,
kind of ambling money now trying t support
businesses with the lope that somehow things will turn
around. I think- we're seeing (-i lot of money going Out
from taxpayers and going into downtown to support
these lame businesses, whereas outside of downtown
thin s are ettin noticeably worse. T live five minutes
away and already YOLI'rC seeing a house Of pr stitUti i -1;
a crack. souse and a f ence sprin rl l7t LIP next to a day
care center and .l .find .it sl.i fitly Insultmg to watch a
million dollar tax abatement i.v n to a company that's
already begun its construction. They've already begun
all of their 1,-)ro ects. They WO ld continue, to d o so, but
you are seelno -fit to Give thern money to ni,cl e tlieni
competitive. If I had a failing business and came l erc to
ask -for the same thin I'd be voted down. f want. to
niake my feektigs known to the C.'ommissioll.
8. NEXTCOMMISSION MEETING
The next ineeting of the Redevelopment Commission is
scheduled for Friday, May 18, 2007 at 10.00 a.m-
. ADJOURNMENT
There being no farther business to come before the
l ed {elopt- ent Commission, Mr. Downes made a
motion that the meeting be adjOUrned. Mr. Peczkowski
seconded the notion and the meeting was adjow -ned at
11:35 a.m.
AP
Dondld E. Inks Director
} 5
F7 I
{ I
f
f
Marcia I. Jones , Pr id nt
OLIth Bend. Redevelopment Comniissio n
esclIedUled RC Ular Meeting —May s, 2007
EXECUTIVE SS I N
May 822007
The SOLIth Bead Redevelopment Commission reef in Executive Session on Tuesday,
May 8, 1 007 at 9:30 a.m. The meeting was held in. Rooni 1.200 County-City Building, 227 West
Jeff "erson, South Bend, Indiana, for the purposes specified in I.C. -1 - . - .1 b .
Commissioner's Present: Marcia Jones, President; Karl Kin , Vice President; Greg Downes,
Secretary- and Kerr Pec l owski. Others resent: Jeff' Gibney, Executive Director, Com ..unfly &
Econonilc Development, Don Inks, Director, . cononiic Development, A.tto m. y Charles Leone,
11.1 Schalliol, Nick Witwer, Andy Laurent, and .l .obcrt M,tthia. The Coni.x it'ssion certifi s that no
topic was dISCLIs cd other than the subject utter speciti d in the Public Not cc. The Executive
Session was ac joumed at 9:55 a.m .
c Fr ,rte
DEPARTMENT of REDEVELOPMENT
}5
.S.1, nature
Marcia T. Jones, President
1,11111ed Iva n)f:' aIit ith.,
South .fiend Redevelopment Commission
46
THIS LEASE, made and entered into this - day of , 2006,
by and between
N 0 RFOLK SOUTHERN RAILWAY COMPANY, a Virginia corporation, whose maahn
address is Three Co =ercial 'lace, Norfolk, Virginia, 23510 hereinafter referred to as
"N SRC -d'. and
L Management Corporation, an Ohio corporation whose mailing address is 15 North
Walnut Street - Suite 300, Mount Clemens, Miclu'gan 48043, hereinafter referred to as
W1 TNES SETH:
THAT the PARTFES HER-ETO HER-ET agree as follows-
ARTICLE 1. NS .C., insofar as its n*ght, title, and interest enables it so to do, and without
warranty, and in consideration of the covenants of Lessee, hereby grants unto Lessee the .right to
occupy and use for the purpose or poses hereinafter mentioned:
On e.parcel of the right o f gray or property of NS RC at M11 epost SK-
3.0-1 South Bend Broach, located in South Bead, Saint Joseph
_.
County, hidlana, ha f g an area of ,00 square feet, more or less,
the location and dimensions of which are substantially as shorn on
print of Drawing ing No. 1 087196 marked Exhibit A, dated January 3 1,
2006, hereunto attached and made a part hereof (hereinafter referred
to as "P remises") ; TOGETHER with the right to install fencing, Mare
o tni d. o equipment and to locate a construction office ailer on
the Premises, which said fencing, equipment and trailer shall not
become a fixture(s) upon the realty, but shall remain the property of
Lessee and shall be removed from the Premises upon termination of
this Lease.
NSRC reserves unto itself, and its permute s, the permanent right to maintain, operate, renew, or
reconstTuct upon, under, or over said Premises, any existing pipe, electric transmission, telephone,
telegraph, and signal lines, or any other facilities of like character. Lessee agrees that its occupation.
and use of the premises 1 s subject to any or all such rights and uses and to such rights as the owners
or users thereof may r have to use any road or high ay, or portion thereof, which. may be located upon
or which may traverse said Premises.
ARTICLE Lessee will use said Premises for the purpose of storage as a construction
staging area and location of Lessee's fence and for -no other purpose out the w e consent of
NSRC. This Lease is a personal pr' ilege to Lessee and shall not he assigned without the w tte
consent of I NS RC, nor shall Lessee, except with such written consent, pe nit said Prey es to he
used for any purpose by any other party, fire or corporation.
ARTICLE Lessee will pay unto NSRC as rent the sum of THREE HUNDRED FIFTY
AND NOI 100 D 0L ARS o.00 per year, payable am-ually ih advance, b eginning as of the 1"
day of February, 2006., vl ch is the effective date hereof. If Lessee shall default in the pay e t of
rental hereunder for a period of ' :�O days after the same shall be due, a late payment charge i the
amount of t of l % of sueb rent for each month or portion thereof that the sa -me shall re amn unpaid
shall be charged to Lessee. Lessee will pay such late payment charge together with rental due
hereunder. If NSRC cancels or terminates this Lease for any reason except default ofLessee, NSRC
shall refund to Lessee its pre rata portion ofrent paid for the u e pired period, but if NSRC cmeels
or ter'minates because of default of Lessee, them NSRC may retain the rent paid for the unexpired
period as liquidated damages.
ARTICLE 4. Lessee wi II pay to NSRC amounts sufficient to cover all taxes, license fees, or
other charges assessed or levied upon or because of the property of or the business conducted by
Besse upon said Premises ofNSRC. Lessee will also pay to NSRC amounts sufficient to cover all
assessments or charges made a alnst said Premises or against NSRC as owner of said Premises for
street or sldewalk paving or other public improvements. At the optio13 of NSRC, Lessee shall pay
NSRC for such taxes, license fees, charges and assessments either in lump -sans or in annna
installments.
ARTICLE Lessee will not construct or install upon said rer ses any h ildln s,
structures., or improv =e is unless specifically pernutted hereby or by w.tten consent of NSRC.
Ar y bull dings, structures, or improvements erected by Lessee on said Premises, shall he substantially
constructed or installed., maintained, and used in such manner aS not to hiterf'ere with the business of
NSRC, shall be kept in good repair and presentable condition, shall be located as described herein or
otherwise approved in Ming by NSRC, and shall not be relocated upon NSRC Prerru'ses except
with the written consent of NSRC. Lessee will be responsible for all snow and ice removal and will
keep said Premises in clew and sar tary condition, free of waste,, trash, or unsanitary or flarmnable
.matter, and prevent the pasting of adverlising hills or signs upon said Premises, except the usual
business sib of Lessee.
ARTICL E 6. Lessee shall obtain all permits, certificates, licenses, and authorizations
required by any govenimental authority for any =pro ements to or use of the Premises.
ARTICLE ,e see shall pay, satisfy, and discharge all claims, judgments or liens for
material and/or labor, used or employed by Lessee or its acct in the ccrstructior, repair,
maintenance, or removal of any buildings or structures located upon the Premises, whether the
buildings or structures shall, under the terms of this Lease, he the property of NSRC or Lessee, and
Lessee shall indemnify and save harmless NSRC, C, its officers, agents and employees, from all such
clip , judgments, liens, or demands whatsoever.
ARTICLE In its use and occupancy of the Premises, Lessee will comply with the
requirements of all federal, Mate, and local safety, health, e virmunenta.l, and sanitation laws, rules.,
regulations, and ordinances., and,, will at its own expense make all corrections, repairs, or additions to
said Premises or the facilities thereon which are necessary to ensure compliance with such laws,
rules, regulations, and ordinances. If Lessee is required by any such laws, rules., regulations, and
ordinances to obtain insurance or furnish other documentation of financial responsibility, Lessee
shall provide evidence of such insurance or documentation to NSRC prior to occupancy, Any
insura ice obtained by Lessee pursuant to this Lease shall be maintained in force for the duration of
the Lease and shall provide for notice to NSRC at least 3 0 days prior to cancellation or terrnxnation.
ARTICLE Lessee shall not Mnstall any underground tanks or associated underground
Piping for the stora e of any product on the Premises ofl NSRC without the express wntten. consent
of NSRC C given prior to installation,
ARTICLE 10. Lessee shall not dispose o f any wastes of any kind, whether hazardous or riot,
on said Premises and lessee shall not conduct any activity on said Premises which may or does
reuie a hazardous waste treatment, storage or disposal facility permit from either the federal or
state agencies.
ARTICLE l 1. Lessee shall fun sh NSRC with a written report detailing all releases, as
defined In 10 of the Comprehensive Environmental Response, Compensation and Liability Act
of 1980 Super uid Act), R L. 96-5 10, on or from the Premises whenever such releases are required
to be reported to any Federal, State, or local au.tliori y in accordance with any Federal, State, or local
laws, rules, regulations, and ordinances, and any regulations issued thereunder including, but not
limited to} those laws listed in Exhibit B attached hereto. Such written report shall identify the
substance released, the amount nt released, and the measures undertaken to clean up and remove the
released material and any contaminated soil or water, and shall further certify that no contamination
remains or will remain after the cleanup measures have been completed. Such reports shall be
supplemented by providing NSRC with copies of any Witten reports required to be submitted by
lessee . to any Governmental agency in accordance with any Federal, State, or local law, rule,
regulation, or ordinance, or by the Council on Environmental Quality's National Oil and Hazardous
ubstanees Pollution Contingency Plan as it now exists or as it may hereafter be amended. The
foregoing reports to NSRC and copies of reports to Gover nental agencies shall be sent to NSRC's
Director of Environmental Protection and Emergency Response, c/o Norfolk Southern Corporation,
110 Franklin road, S.E. Roanoke, Virgi 'a 24042 -0022, w'thin fifteen days after notification,
whether written or otherwise, is required to be given by Lessee to any such Governmental agency.
ARTICLE 12. a If NS RC detects any violation ofA ticIes 8, 9, 10 and 11, including
any contamination of the Premlses, NSRC shall so notify lessee of the violation and Ussee shall
take immediate steps to eliminate such violation. lessee hereby agrees to indemnify and hold
harmless NSRC. its officers, agents and employees, from all liability resulting from violations of
Articles 8, 9, 10 and l I of this lease and agrees to reimburse NSRC for all actual costs and expenses
incurred by NSRC in eliminating such violations, Mncludin , but not hn itcd to, all costs and expenses
to decontaminate the Premises.
(b) Lessee agrees that it will reimburse NSRC for and hold harmless NSRC, its
officers, agents and employees, from all fines or penalties made or levied against NSRC by any
Governmental agen -cy or authority as a result of or in connection with Lessee's use of the Premises or
ofthe facil it] es thereon or as a result ofany release of any nature onto the ground or into the grater or
air by the Lessee from or upon the Premises- Lessee also agrees that It will reimburse NSRC for and
hold NSRC harmless from any and all costs, expenses, and attorneys# fees and from all penalties or
eivi j udgments incurred, entered, assessed, or levied against NSRC as a result of Lessee's use of the
Premiss or as a result of any release of any mature onto the ground or into the water or air by the
Lessee from or upon the Premises. Such reimbursement or indemnification shall include but not be
limited to any and all Judgments or penalties to recover the cost of cleanup of any such release by
Lessee from or upon the l remises and all expense inc .rred by NSRC as a result of such civil action
including but not limited to attorneys` fees,
(c) The provisions of this Article 1 shall apply regardless of acquiescence or
negligence or allegations thereof on the part of either party.
t The foregoing provisions of ths rticle 1 shall apply notwi.tbsta.ndin any
other provision of this Lease to the contrary.
ARTICLE 13. The liabIlity of the parties to this Lease, as between Lhe sel es, for death,
personal Injury, and property loss and damage which occurs by reason of, or a ses out of, or is
incidental to, the use or occupancy by Lessee of the Premises covered by this Lease, shall be
determined in accordance with the following provisions regardless of considerations of fault or
negligence:
(a) Lessee shall be solely responsible for, and shall bear all cost, expense, and
liability resulting from., loss of or damage to property by fire;
(b) Lessee shall be solely responsible for, and shall bear all cost, expense, and
liability resulting from, death, personal injury, and loss and damage to property relating to Lessee's
use and occupancy of the Premises or caused by the acts or omissions of Lessee, or of the agents or
employees ofLessee, or by the violation by Lessee or its agents or employees of any of the terms of
this Lease, or by the acts or omissions of Lessee concurring with the negligence of a third party;
c Except as provided in subparagraph (a) above, NSRC shall be solely
responsible for, and shall bear all cost, expense, and liability resulting from death, personal injury,
and property loss and damage caused solely by the acts or omissions of NSRC, or of the agents or
employees of NSRC, or by the acts or omissions of NSRC eoncum'ng with the negligence of third
ply;
(d) Lessee hereby agrees to i dem.tffy and sage harmless NSRC, its officers,
agents and employees, from all of the liabilities and expenses, as med and undertaken by Lessee in
this Article 13. Likewise, NSRC hereby agrees to inden fy and save hannle s Lessee, its officers,
agents and employees, from all oft the liabilities and expenses assumed and undertaken by NSRC in
this article 1 ;
- e Knowledge on the part of NSRC of continuing violation oft the terms off s
i
Lease by Lessee shall constitute neither an omission nor acquiescence on the part ofNSR , and shall
in no event relieve Lessee of any of the responsibilities unposed upon Lessee hereunder.
ARTICLE 14.
(a) In connection with the Premises cowered by this Lease,
Lessee agrees to obsei-ve and be bound by the rules of NSRC with respect to standard clearances for
all railroad tracks located on or adjacent to the Premises covered by this Lease; that is to say,, the
Lessee agrees to maintain and preserve are overhead space of 23 feet measured perpendicularly from
the top of the rail (except that overhead clearance where wire li
(b) Upon the termination of this Lease, for whatever- cause, Lessee will vacate the
reuses immediately, remove all improvements owned by or placed thereon by Lessee, and leave
the Premises, including the subsurface in as good order and condition as said Premises may have
been prior to the use and occupation thereof by Lessee and free from holes, obstructions, debris,
wastes, or contamination. of any kind.
(c) If Lessee fails to restore the Premises as provided herein prior to the date that
.lessee is required to vacate such Premises, then NS RC may, at its option but at the sole east and
expense of Lessee., remove or arrange to remove all such property, improvements, obstructions,
debris, waste, and conta radon., and restore or arrange to restore both the surface and the
subsurface of the Premises to as good order and condition as said Premises may have been prior to
the use acid occupation thereof by ]lessee. Promptly upon bill rendered by NRC, see shall pay to
NS RC the total cost of such removal and restoration, including, but not limited to, the cost of
cleaning up and removing any contaminated soy. l or water,
ARTICLE 18. If Lessee fails to vacate the Premises p or to the date that Lessee is required
to vacate such P reml ses , NS RC may, in addition to any other I e al remedy it may have, re -enter and
take possession of said Premises, oust Lessee acid all. persons holding under Lessee, and restore or
arrange to restore the surface and subsurface of the Premises, as described in ice 17 above.
SRC may also, after reasonable notice to Lessee, take possession of any property and
improvements, including structures, if any, left on said Premises by Lessee and dispose of the same
by sale or otherwise for the purpose of applying the proceeds against unp d rental or to other
paymcnts due under the terms of this Lease, or for other purposes as hereinafter mentioned. ff, in
NSRC's j ud ment, any property or improv ements so lei on said Premises by Lessee is contaminated,
has no value, or cannot be converently sold., NS.0 may dispose of the same without notice to
Lessee in such manner as NSRC may determine to relieve itself of the burden of caring for such
property and improvements, without accountability to Lessee.
ARTICLE 19. In addition to any other rights of entry reserved. h rein, NS RC reserves unto
itself and its perrnittees the right to enter upon said Premises at anytime for operation, maintenance,
reconstruction repair, or relocation of any banding, trackage, or other structures located on said
Premises; for inspection of the remises; for taking whatever corrective actions NSRC deems
necessary to eliminate any violation of Articles 8, 9, 10 and 11,. if, NSRC's Judgment, the steps
taken by Lessee are inadequate or not timely; and for miy other lawful purpose.
ARTICLE 20. 1t is agreed between the parties that the applicable statute of li�tatlon shall
be tolled and shall not begin to ran against NSRC in connection with any controversy or dispute
arising under the provisions of Articles 8, 9, 10, 11, 17 and 18 hereof until NS RC has received actual
written notice of noncompliance with the aforementioned articles.
ARTICLE 2 1. No waiver by NS RC of any one breach ofeovenant or default by Lessee shall
he eonstraed as a. waiver of any other or subsequent breach or default on the part of Lessee. Also, no
declaration of termination of this Lease shall be construed to release Lessee from any covenant or
obligation as to which Lessee may be in default at the date of such termination..
ARTICLE Lessec agrees to pay all costs and expenses, including, but not limited to,
reasonable attorneys' and consultants' fees, incurred by NSRC in connection with enforcing the
performance of any of the provisions of this Lease.
ARTICLE 23. If any provision of this Lease, or the application thereof to any person or
circumstances, shall, for any reason and to any extent, e invalid r nen o�-ccabae, � rernainde�' of
this Lease and the application of uch provision to other persons or circumstances shall not be
affected thereby but rather s all be enforceable to the fallest extent permitted by law.
ARTICLE 24. Lessee hereby agrees that the indenm ties it undertakes in favour of NSRC, its
of cers, agents and employees, ire this Lease wi11 also apply in favor o f Pennsyl va a Lines LLC, the
corporate affili ates ofNSRC and to their respective o ffi cers, agents and employees as fily as 1fthey
were specified as indennitees heroin,
ARTICLE 2 5 Lessee Zvi 11, at the expense o f Less ee and for the further protection ofNS C,
procure and maintain din 4 or the life of this Lease, in a form and with an insurance company that is
satisfactory to NSRC, a policy o Commercial General Liability suranec with a combined s' gle
limit of not less tha i S1,000,000 per occurrence for ink to or death of persons and damage to or
loss or destruction of property. Said policy shall be endorsed to provide contractual liability
coverage for liability assumed. under this Lease and shall be of of form that does of deny coverage
for operations conducted within 50 :feet of any railroad hazard. In addition, said policy shall be
endorsed to name Norfolk Southern Railway Company as an additional insureds and shall include a
severability of interests provision,
Pn"or to entry on NSRC property, a certificate evidencing such insanec sail be finished to and
approved by:
David fi`n'es, Director Risk Management
Norfolk Southern Corporation
Three Commercial place, Norfolk, vir im a 23510-2191
Telephone: (757) 629 -2701 'ax: (757) 629 -27361
The certificate of insurance shall state that thirty 30 days advance wTitten notice will be given to
NSRC of ray material change in,, or cancellation of such insurance.
The fam] shing by Lessee o.f such evidence o f insu.rance and acceptance of the same by NSRC is not
intended to and shall not reduce, limit, affect or modify the primary obligations and fiab.ifities of
Lessee under any other provisions of this Lease.
EXHIBIT "B"
Federal Wat r Pollution Control Act (Clean Water Act), 33 T.S.C. 125 et sue.
_ Air Pollution Prevention and Control Act (Clean Air Act), 42 U.S.C. 7401 et a.
3. resource Conservation and Recovery Act of 1976, 42 U.S.C. 6901 et sue.
4- Comprehensive Environmental Response, Compensation and .liability Act of
1980 (Superftmd Act) PL 96-510.
5. The Rivers and Harbors Act of 1899 (The Refuse Act), 33 US.C. 401-413.
6. Federal Insecticide Fungicide and Rodenticide Act, 7 1 .&C. 136 et sue.
7. Tox 1 c S ab stances Control Act, 15 U.S.C. 2601 et .
S. hazardous and Solid Waste Amendments of 1984, P.L. 98-616, nil ding but not
limited to Title VI (relating to underground storage tanks); codified as Subtitle I of
dwd!§� the Resource Conservation and Recovery Act.
9. Superf nd Amendments and Reauthofization Act of 1986, P- , Na. 99 -499.
M Emergency Planm*ng and Community Right-to-Know Act of 1986, P.L. No,
99 -499.
This is not intended to a comprehensive list of federal statutes but is ill s rativ only.