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HomeMy WebLinkAbout06-08-07 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULED REGUI.,AI3. MEETING ,Tune s, 2007 10:00 a.m. Presiding: Marcia I. Jones, President 1. ROLL CALL Members Present: Members Absent: Legal Counsel 227 vest Jefferson Boulevard South Bend, Indiana Ms. Marcia Jones, President Mr. Hardie Blare, Jr. Mr. Ken Pee kowski .fir. Karl King, VI.ce President Mr. Greg Downes, nes, Secs }etary Mr. Charles S. Leone, Esq. Redevelopment Staff: Mr. Don Inks., Director Mrs. Cheryl Phipps, Reeording Secretary Mr. Bill Se alliol, Economic Development Specialist Mr. icho as it r, eonon�ie e eio ens e a��.s� Ms. Debrah. Jennings, Property Manager Others Present: Ms. Janie Loo, South Bend Tribune Mr. Marty Wolfson. Ms. Linda Wolfson GIs. Rita Koala Mr. David Raf n.sky Mr. Michael Hardy Mr. W.H. Buckles 1r. Troy Warner Ms. Glenda Rae Hemande Mr. Tom Price Mr. George Adler Mr. Mike Campbell 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting in of Friday, May 18, 2007. Upon a motion by Mr. Pee l ow l i, seconded by o . iIS IO PP o TED THE MINUTES of TIDE Mr. Blake and unanimously can ied, the REGULAR MEETING or FRIDAY, ' , MAY 181 2007 Commission approved the Minutes of the Regular Meeting of Friday, May 18, 2007. South Bend Redevelopment ommisslo]A ' esc eduled Regular Meeting —June 8, 2007 3. APPROVAL of CLAIMS Redevelopment Commission Claims submitted ,Tune 8, 2007 for approval. 324 AIRPORT ADA Boswell Golf Design, Inc. 5,100.00 DLL 55,809.88 M1ehacls Appraisal Sei -vice 350.00 Witt Appraisal Services, Inc. 500.00 Key Herceg & Associates, Inc. 705585.90 Ken erceOF & Associates, Inc. 5,000.00 Ken Herccg & Associates, In.c. 60M00.00 Sopl , Nussbaum, Ina nIt & Kaczmarek 56.25 414 SAMPLE WING GENERAL 1,750.00 .1 !1 tkolaj ewski & Associates, Inc. , 5 3 . Indianan Michigan Power 13.52 420 FUND TIF DISTRIC -SBCDA GENERAL sops e, Nussbaum, Ina nit & I aczmarel 1,923.75 Indianan Michigan Power 142.79 AT & T 82.32 NIPSCO 302.11 South B end Water Worts 104.83 T & T 27.48 Ampco System Parking 25234.56 Ralph D. Lauver 1,850.00 Jerome E. Michaels 1,750.00 422 FUND WEST WASHINGTON S South Bend Heritage Foundation 36,291 .5 6 428 FUND AIRPORT 2003 BOLD .D LZ 2,560-00 Walsh & Kelly 751055.70 433 FUND REDEVELOPMENT AIDMIN GENERAL Sopko, Nussbaum, Ina it & Ka mare 11 ,036.25 2 South Bend Redevelopment Commission Rescheduled Regular .Meeting —June 8, 2007 3. APPROVAL OF CLAIMS (CONY.) 619 FUND BLACKTHORN Meadowbrook Golf Group Inc. Ryan Incorporated Central. Mr. Peczkowski asked that in the future the Commission be provided with a quarterly balance sheet for Blackthorn Golf Course. Mr. Inks responded that he would do so. Upon a niotion. by Mr. Peczkowskl., seconded by Mr. Blake ai -id unanimously carried, the Commission approved. the Claims submittcd June 8, 2007, and ordered cheeks to be released. 4$ COMMUNICATIONS A. Communication from Community Forum for Economic Development. Mr. Iriks noted that the Commission received a communication from the Community Form for Economic Development dated May 24, 2007. The Communication read as follows: The Community Forum is very interested in the issues of economic develnptnent, that carne before the Redevelopment Commission. However, many Forznn members have found it difficult to participate meaningfully in the Co37amissiorz's process in their effort to help provide the necessary public input essential to such important economic development decisions. In wha follows, we make e s i is suggestionsfor how the Connn ssion could improve its transparency and accounta i i )� and how it could r .c ease the public 's democratic input. We wish to stress a our comments are directed at the Commission's procc c s, not the individual 3 8,000.00 273,546.00 Bunker Sand Area 613,375.90 COMMISSION APPROVE THE CI-AIMS SI_JI3MITT:"1) JUNE 8 , 20071 AND 0 RDER :1I. 'I'H E OJECKrSTO BE RELEASED COMMUNICATION FROM COMMUNITY FORUM FOR ECONOM i DE;VF OPMENT South Bend Redevelopnient Com.m.lssiol . Rescheduled Regular Meeting ...... -June 8, 2007 4. COMMUNICATIONS (CONT.) members of the Commission or its Stuff. We look forward to your reaction to these suggestions. 1) Make it possible for the public to understand what is happening at Cornrrzission meetings. la) Make agencicrs of t.cpcvnaing »teetings available in a timely fashion. We applaud the Coninnssion . "s procedure to make e its agendas available to the pub 11c an to post them on its websi eo It would be best, thoug , if th ese agen das cou Id be published a t least several days in advance of the meeting. ]b Make minutes of past r7ieetings available in a timely. fashion. Again, it is commendahle to post minutes ofpast meetings n the Commission's website, taut is relevant in in utes are n ot posted in time to be read before upcoming meetings, their value is diminished. 1c) Make agenda items and meeting minutes understandable to the public. It is of little use to publish agendas and minutes if their content is obscure and fails to disclose important information. For example, many members of the Community Forum supported the inclusion of Lasalle Square in the Airport Economic Development elopment Area, and remain very interested in this issue. After the Commission's October 20, 2006 ineeting, it seemed that the Commission did not discuss this issue again until its May 3, 2007 meeting g its the South Bend Common Council. 11 South Bend Redevelopment Commission Rescheduled Regular Mein —June 8, 2007 4. COMMUNICATIONS (CONS'.) However, an item on the Commission's January 19, 2007 agenda states t efo owing.` "Public Hearing on Resolution No. 2300, Supplemental Appropriation Resolution of the South Bend Redevelopment Commission. (AEDA, Airport Economie Development Area Allocation Area No.. . " To the public, it was not clear that this item had anything to do with LaSalle Square. But apparently this resolution explicitly raised the possibility of appropriating an unspecified aniount cif mon yf or LaSalle Square. 2 Disclose important information to t o ub ic. _a ) Publish relevant zrrfrmation on the Commission's website. If the public could have examined this resolution easi1v before t he Jan ray 19, 2007, it might have been aware that it had something to do with LaSalle Square. It would also beneficial to .post on the Commission "S Web site resolutions, development agreements, and other relevant documents passed by the Commission. 2b) Take positive steps to provide relevant information to the public. Given t e,public interest in LaSalle .square, the Con,in ission could have indicated that it was considering appropriating money, for LaSalle Square. . t also could have said ho w much was being- considered. It was only on May 3, 2007, at a South. Bend Common Council Community and con r r i e Development Committee meeting, that it was announced F' a F' the Commission was considering seen ( ling $500, 000 per +year for LaSalle Square. 5 South Bend Redevelopment Commissloll Rescheduled Regul meeting —;dune 8, 2007 4. COMMUNICATIONS (CONY.) 3) Provide ways for the public to have meaningful input into Commission decisions. a ) Estciblishforincilprocetli4resfor thepublic to A cupe s bstan.tr.ve Com mission rojects, Even more important than announcing its decisions, the Commission should involve the public in its decision process. In moving forward on a 'a e Square, the Commission should solicit public opinion. R7i.at coo residents in th e a rea and o th er m em b e s qf th e pu blic think about the amount of money rein considered? mat ro ects is the Commission considering and what is the public's view of that investment? o1yo should e afiormal way forpublic input to be incorporated into decisions concerning the future of LaSalle Square and similar ar projects. This particular suggestion might be seen as inefficient and time - consuming. It is certainly a departure from the norm of how business is usually conducted. But it is of fundamental importance. Public involvement is essential to good governance. The people who are affected by economic develaprnerat decisions should have a seat at the table. We have discussed these issues with Coini issione Hardie Blake and have recelvedpositivefeedback and ideas. Some other specific suggestions: 3b) Allow for pufilic input on items being considered by the Commission. Some reasonable allowance could be made for members of the public to ask questions or 6 South end Redevelopment Commission Rescheduled Regular Meeting —June s, 2007 4. COMMUNICATIONS (CONT.) .,provide short comments on important issues, even outside the Commission 's fog *anal hearilla process, 3e Provide a ti P ublic time 1" at the end of Commission meetings. The South Bead Common Council has such a procedure. The Commission could also. 3d} hold at least soisae meetings at times that crlloiv more mernhers of the public to attenca'. Ten o'clock on a weekday morning is impossible for many people. Perhaps some meetings could be red during the lunch hour or at other more convenient tis es. :Mr. Ins noted that staff tn'ed to improve the agenda for this meeting by making it clearer what the items were about. Mr. Iiiks indicated that staff is continuing to work on the request to publish relevant information on the Commission's Web site. He agreed we need to do more. Mr. Peczkowski asked for some background on the Community Forum for Economic Development. Ms. Wolfson responded that the organization does not have ion- profit status. Most of its members are active in other neighborhood or community organizations. Defining ining economic development broadly, the Forum is interested in tax abatement and TIF, as well as other things. Therefore, the Commission's business is of interest to members. Ms. Hemandez has been attending Commission meetings for some time to monitor its activities. Over time the committee has compiled suggestions to improve the transparency of the Commission as well as allow more democracy from stakeholders. South. Bend Redevclopmcnt Commission .e ched lcd Regular Meeting —June 8., x.007 4. COMMUNICATIONS (CONY.) Mr, Peczkowskl noted that the Commissioner receive their agenda and packet on Wednesday, but it is not until they arrive for the Co missi.o11. meetings that they know what the actual agenda of the meeting will be. Things that he has studied and prepared for get pulled from the agenda or tabled. It is frustrating for him as a Commissioner as well. Mr. Peezkowski also noted that he made a point of talkina to all the major players at LaSalle Square to get their input, By talking to them he got the im.pressi.on that the Commission is not soliciting opinion in the traditional ways. Perhaps too traditional. We have a public meeting or pubfic hearing on at day or time that are inconvenient for people to show np, such s the d. after a major holiday. We schedule public input when it is convenient for us, not for the public. The owner of St. Vincent DePaul said he was never contacted. They had very little input on "it.'' The owner got a couple of meeting notices, but he had the feeling that since St. Vincent f ePanl is planning to rove, perhaps they were being discounted as a player in that project. GIs. Jones noted that the Commi ison represents two co stit encles. Mr. Pec l o vski and Ms. ,Tones represent the Coi non Council. Mr. Ding, Mr. Downes and Mr. Blare are mayoral appointments. They are all volunteers. The general nature of the Commission is to facilitate and to make sure that projects follow guidelines. The real heart of hat goes on should start witli the Council and the :Mayor. The Council schedules meetings at more convenient tines such as late afemoon where heir structure accommodates public input. That is not really the structure of the Commission. Ms. Jones stated that she has no personal agenda. She is a VOILinteer because she loves her city. She South Bend Redevelopment Commission Rescheduled Regular Meeting —June 8, 2007 4. COMMUNICATIONS (CONY.) enjoys being a Commissioner. As volunteers,, Commissioners have limited control over what happens. She 'sees Commi.sswners as performing ei.tz en oversight. While we are happy to have people eons ke and watch the process, she doesn't believe it's a public a forum as are the City Council meetings or Mayor's input sessions. M.s. Wolfson said that she believes the Community Forum does understand that, but what they've come to understand, especially this last year, is the tremendous importance of this Commission. By the time issues get to the City Council level, things are quite far along in the approval process. MC£ Tf, VF r lntr 4 out fl -arat d ale Qc lsa.�e 1-%e came 0 .f �, A "'%,` L LAIQiL -L-1 k_7 %1 a Commission issue because it was of Common. Council interest first. Ms. Wolfson said that the LaSalle Square issue was an exception. GIs. ,hones stated that that should be the way it works. The Commissioners should represent their appointing entitles. She believes Commissioners should meet with those entities to get input and feedback about what they want. Mr. I ee l ows i asked if Mr. Downes, Mr. Ding, and Mr. Blake were also invited to the LaSalle Square meeting. Ms. Jones responded that they were all invited. It Just happened that only she and Mir. Pee loo rski were able to attend. Mr. Blake stated that the Commission may need to changes As procedures now that the Community Forum wants to participate as a grass roots organization. The communication senses an attitude that the Commission doesn't want the type of participation that we're talking about. If our 9 South Bend Redcvclopment Commission Rescheduled Recrular Meeting ...._...June , 2007 4. COMMUNICATIONS (CONT.) procedures give the impression that the Commission doesn't want participation, then perception becomes reality. If low income people don't feel they can participate, or if those that would advocate for them can't get access to do so, we need to change our procedures so that they can. If Commissioner can't participate because it takes too much time, then it's better for those Commissioners to resign and allow others who can meet at more convenient times to he appointed. If it "s necessar. y to have a 10:00 and a :00 or 6;00 meeting, we ought to do it in order to increase participation now that people want to participate. That's not impossible. it's time consuming. But if that's what it takes in order to bring more people to the process, then that's what we have to do, because that "s the Taff thing to do. Ms.. ones noted that Commissioners have limited. control. we will take a look at state statntc to see what our guidelines are. Mr. Blake stated that when the state makes statutes that do not allow people to participate, then the state needs to change its statutes as well. From realistic standpoint, it becomes an attitude that either it's go eminent for the people, by the people or it's a bunch of crap. without calling it what it really is, then you can never change it. It is time to change that. . Mr. Wolfson noted that there are some very speeif �c s��g cstions the Community `o n is making: allowing opportunity at the end of the meeting for people to say things the sane way the Common Co nc .1l sloes; allowing some more public input during the meeting at points of importance to the public; publishing things on the Web site that are coming up before the meeting so people can he prepared. 10 South Bend Redevelopment Commission Rescheduled Regular Meeting --Jug e 8, 2007 4. COMMUNICATIONS (CONT.) Mr. Peeowsi asked if it is counter productive for Mr. Wolfson when items are pulled from the agenda at the last minute. 1-s that the way the game is played` Is Mr. Wolfson is OK with. that? Or does Mr. Wolfson . think if it's on the first agenda., there better be a dared good reason it }s not on the revised agenda? Ms. Jones noted that there are r .a y things o n the agenda the staff and Commissioners don't have total control over. Staff pets things on the agenda sometimes anticipating that everything will be in place to allow the ftem. to be considered at the meeting M s. 4Y of ksChi x .4k GV 9i'ialL 12 � "S l r I%R x to 4%-f answer Mr. ec ows l's question. In the past they have not understood what the agenda items meant so as to be disappointed when they were pulled. The agenda was clearer this time, so that jade the perience better. Ms. Jones i dlea.ted that the Commission will talke all the steps that are under its control to make the process more transparent. Mr. Wolfson asked that the staff and Commissioners respond in writing to the Community Forum's individual points. GIs. Jones indicated they would. 5. OLD BUSINESS There was no Old Busmess. 1. THERE WAS NO OLD us[NE s South Bead Redevelopment Commission Rescheduled Reg ular Meeting —June 8 , 2007 6. NEW BUSINESS A. Public Hearing (1) Public bearing on Resolution N . 2334 amending the South Side Development Area Development Plan. (adding 4223 S. Main o the Acquisition List) :Mr. Schalhol noted that Resolution No. 2334 ar ends the South Side Development Area Development Plan to add two parcels to the Acquisition List. The parcels are at 4223 S. Main St., Tax Ivey Numbers 23-1025-1431 and 23-1025-1432. The parcels contain one house. The parcels are located north and adjacent to parcels the Commission has previously purchased at 4309 S. Main St. The acquisition is necessary to facilitate future development of the Main/Lafayette crossover. Acquisition of these propertles is consistent with the goals and objectives for the development area of improving infrastructure and connectivity in the South Side Development Area.. Mr. -Inks noted that the Public Hearing File is complete containing A copy of the Notice of Hearing; 2 A copy of Resolution 1 0.2334; 3 An affidavit from Carol Smith, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on May 25, 2007; 4 An affidavit from Richard ..ndrysia ., Classified Ma . ger of the Tni- Connty News, that the Notice of Hearing was published in that newspaper on May 25, 2007; A statement froze. Bill Schalliol that affected property owners and registered neighborhood associations were notified of the Public Hearing by memorandum on May 18, 2007; and that the mail was 12 South Bend Redevelopment Commission. Rescheduled Regular Meeting —June 8, 2007 6. NEW BUSINESS {CONY.} A. Public Hearings (1) continued.. . checked prior to this rnecting. As of 10:00 a.m., June 8, 2007 there were Witten remonstrances received related to Resolution No.2334. Ms.. ones opened the public hearing for L)in,ic, HEARING ON RES01-UTION N o. 2 334 anyone who wished to speak. There was no one who wished to speak- regarding Resolution No. 2334. Ms. Jones closed the public hearing. iv1r. zko s i noted file uf. l -11 between. Resolution No. 2334 and upcoming agenda item .H.i. Resolution No. 2345. In Exhibit A for Resolution No. 2334 the estimated cost of'acquisition is given as approximately $ 00,000. Resolution No. 2345 states an offering price of $65,500. He asked what accounts for the discrepancy. Mr. Schallioi responded that $65,500 is the average of the to appraisals done on the property and must be the pee offered in the purchase offer. The resolution adding the property to the acquisition list is typically approved prior to receiving the appraisals, so it uses a generous estimate of the price that nniht be offered in order to not have to repeat the process if the appraisals come in high. Mr. Fee kowski asked what happens to the extra $35,400 when too much is allocated and then net used. Mr. Inks responded that the money is not allocated by the resolution. .II is a planning tool indicating what the value 13 South Bead Redeveloprnent Commission Rescheduled Regular Meeting —.lure 8, 2007 6. NEW BUSINESS (CONY.) A. Public Hearings (1) continued... and cost might be when the Commission mis ion authorizes Its being put on the acquisition list. (2) Commission approval requested for Resolution No. 2334. Upon a motion by Mr. Peezkowskil, secolided by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2334 amending the South Side Development ent Area .uevexop e t Plan. ('adding 4223 S. Main to the Acquisition List) (3) Public bearing on Resolution No. 2339, a supplemental appropriation resolution of the City of Sob Bench Redevelopment Commission (Sample -Ewing Development Area) Mr. 1iks noted that the public hearing file is complete, containing 1 A copy of Resolution No. 2337 deter ining to male the appropriation and setting the public hearing on Resolution No. 2339; A copy of the Notice of Hearing; . copy of Resolution No. 2339, the subject of the public hearing; (4) Are affidavit from Carol Smith., Advertising Director of the South Bead Tribune, that the Notice of Hearing was published in. that newspaper on May 25, 2007; and An affidavit from Richard Andrysia , Classified Manager of the Tn'- County News, that the Notice of Hearing was published in that newspaper on May 25, 200'. 1 COMMISSION PPROVEi) REsOLUTION No. 2334 AMENDING THE SOUTIA 1I)i DEVELOPMENT AREA Di'v]-,L0PM N'r PLAN. ADDING 4223 S, MAIN T l-I..I�_'. A QuI ITI N LIST South Bend d I edevelopment Commission Rescheduled Regular .meeting —June , 2007 6. NEW BUSINESS CONT. A. Public Hearings (3) continued... Mr. Inks noted that the total. appropriation is for $239,993. $21.4,993 is proposed for u -se for debt service payments related to o tstanding indebtedness in the Sample - 'Ewing Development Area. $25.,000 is proposed for other activi.tles related to the Uncol way- Sample project. Mr. Iiiks explal ed. the LineoInway- Sample project. The Commission has been accumulating land north and oast of the S.o-MtheaLst Park fog- the purpose of e pandlM the Southeast park.. one property we have acquired contains the fors cr Grace Church. The $25,000 would be used to demolish the church.. M's. Jones opened the public hearing for PUBLIC HEART ON E oL I No. 2339 whoever wished to spear. Mr. Wolfson: This is an example of some of the things e"re tallying about. I night have something to say on this, but I don't really understand what the issue is and I haven't seen the resolution. It's in a file somewhere. This bind of thing could be posted on a Web site . , it could be made clear where to go to get the resolution. Ms. Jones: Could the resolution be posted on the Web site? Mr. Sehalliol noted that all the notlecs of hearing say a copy of the resolution is available in the office of the Rcdevelopment Com mission. 1 South Bend Redevelopment Commission Rescheduled eg�.�lar Meeting —June , 2007 6. NEW BUSINESS {CONY.} A. Public Hearings (3) continued. b ,GIs. Jones: Could there be a posting on our Web s1te that says "notwes are available.. . so that people would even know to go get them Mr. Inks: : Ta ing Bill's comment to the next step. If it's available in the office, then we can certainly put .1t on the web site. There's no reason for people to have to stop by in this day and age. O . .i id +s7. rn li R.K�d i o i gig A i, moQf efficient way. Mr. Pee lows is This one has come before s before. The S i ple- Ewing project, especially as it's going to relate later on to our appending it to the Airport TIF district, I thinly it's creating a picture that I'm getting uncomfortable with of putting a race horse in the same stall with a plow horse. what are we going to produce from the merging of those two things`? we've got an area that ea.rmot meet its debt requirements. It says we have insufficient funds available prodded for the existing budget in the tax levy. In order to pay the expenses incurred by the Commi sloe for local public improvements it looks like we have ...its like having your stock portfolio and you "ve got some winners and some losers. This one looks life its one of those losers. Those things happen. But what we're doing here by addressing it this way and then, the fact that further on on the agenda here we're going to be looping at combining this with one of our winning stoop 1 South Bend Redevelopment Commission Rescheduled Regular Meetm.g —June s, Zoo b. NEW BUSINESS (CONY.) A. Public Hearings (3) continued... por fofi.o propositions, F'm not so sure that this is wise. I Grant to ask hat happens if we don't approve it. What happens to a district that goes into default? Mr. Inks: The district will not go into default. The city's capital budget picks up the shortfall on debt service payments for the Sample -Ewing Development Area because the city is not going to let those debt obligations go into default. Mr. Peczko rskl: Because if they did"? Mr. Inks: It would reflect poorly on the city's credit rating and its cost ofboi owing would go up substantially. Mr. eczowsi: As has happened in larger cities lac Baltimore. Mr. Inks: Yes. Which would Just add another cost to the taxpayers to incur that higher interest rate, if you could finance it at all. So, in this case it's being picked up by the city's capital budget. These funds became available to us because of the penalties that were assessed against the AJ WrIgbt project for not creating all of the jobs they had intended to. So they became additional funds to s. Instead of letting the funds slit idle in a cash account someplace, and because they are related to a Sample - Ewing Development Area project, acid the bonds related to the AJ Wright project, money was put into the Sample- wing 1 South Bend Redevelopment Commission Rescheduled Regular .Meeting —June 8, 2007 6. NEW BUSINESS (CONY.) A. Publ c . carie s (3) continued... Development Area and the controller has given'h r blessing to using these funds to pay for not only the debt service that's ide t1 ed here, but a portlon of it to pay for the Grace Church demolition. If they are not appropriated, they. those funds will just reni.ain in the cash account for the Sa mple- wing Development Area. The city will Continue e to make the debt s i -vice payments out of its capital accounts instead. But our recommendation and., I'm sure the oler' ree edatio�,ould he tots o. , o appropriate these funds so that the city's capital can be used for other purposes and fully utilize the Sample-Ewing Development Area account. Mr. Pec ows is So the Grace Church is part of this? Because I don't see the Grace Church demolition... Mr. Inks: There should be a schedule attached. It actually says Li Coln vay- a.r ple. Lincohiway- Sarnple Is the project name. M ' ec l o s ' vhieh adds to the other question. This possible Oliver Plow works Memorial for $ 13,000. Mr. Inks: what we've done here is r 'v provided the original appropriation that the Commission had approved early this year in the first column which includcs the Oliver Plow Works Mcmorial. The second column contains only the amount that re'rc 18 South Bend Redeve opm.ent Commission Rescheduled Regular MeetIng —June 8, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings (3) continued... appropriating today, the $239,000. Then we've provided a total appropriation column as well. Mr. Peezoski : So the $13,000 is possibly available, it looks like 't hasn't been used yet. IS it more important to pay off the debt or to have a memorial? Mr. Inks: Again, the first column is the original appropriation. I can tell you that it Hasi indicate whether or not it's been spent. It "s just the appropriation. It doesn't include any expenditures. The original budget was also signed off on y the Controller. There were certain things that the Controller said, "Gee, why don't you use Say ple- Ewing Development Area funds to cover those costs" and agreed to pick up any debt service out of the city's capital budget. But since then we've come across another $239,000 hat's available. Mr. eezl ows is Mow, this was part of the deal when we decided to let the Wright deal, when we said OK we will restructure how much of a penalty per job and so we settled for the amount that they had in rather than the larger amount that we could have expected under the original agreement? Is that what we're tallying about? Mr. Inks: This is past of the amendment to those documents, Yes. 1 South Bend Redevelopment Commission Rescheduled Regular Meeting —June 8, 2007 6. NEW BUSINESS (CONY.) A. Public Hearings (3) continued... Mr, Jones: while we're talking about TIC' districts, and when you mentioned race horses—because we have enough people here, I have bind of a simple understanding of TIC' districts. when they're established, there is a baseline set, the value of the taxed property in that area. Tax incremental financing Is the additional funds that are generated from development beyond that baseline. Then, historically, a district goes into a process. In the beginning, and Sample- Ewing night be a triore exaggefaled example of thlis, biutyou are addressing an area that needs a lot of wort. So you plow coney into it in order to male it ripe for development. I would say that at this point we have spent a lot of money in Sample- Ewing. It hasn't been developed yet, because we've been preparing it for development. I'd say it's on the cusp of being a great potential provider of income to a TIF district. On the other hand, as we add other properties to TIC' districts, we're going to have to make the sane investments in order to prepare those lands for development. o, I think at some point even TIC' district has a race horse and a plow horse. They change positions, as every stock portfolio has winners and losers which sometimes change positions. I think it is a balance, a timing, and if you tape the long broad look at a TIF district you will fend that ebb and flow. And that movement over time from buying, demolishing, doing enviro .menta.i, all that has to be done, especially in a place like Sample- Ewing where there's so much industrial development. Yes, we've made a 20 South Bend Redevelopment Commission Rescheduled Regular Meeting June 8, 2007 huge investment. Yes, right now, if you take a look out there, it looks a whole lot better for development, and we have more interest in that area. M.r.. eezl o vskl: But if you look at what we're going to do by having the airport, LaSalle Square, Hui-w.ich Iron and then the Sample-Monroe district. If you look in the dictionary under gerrymandering, that's going to be the picture. We're going to have this little dog on the end of a leash comil.g here, them another corridor going down to this. Why don't we just make all of our TIC` districts one district` It looks like that's what we're coming to. Ms. .l t vY. Q -id - OMI C people- "a F Ne dof,lx 5.1i1.44. Ai \.Y closer to home than you think. You are getting ahead of yourself. That's not what we're here for. I was just philosophizing about general TI F. I'm not going to get into how we've identified this place versus that place. We're not going to get into that. That's not for this discussion of this item. Mr. Pe z o vski: I find it sort of related because by agreeing to this it looks like we're putting this one to bed in order to facilitate the addition of this to the other TI. Ms. Jones: I think we would do this no natter whether there was nothing else going. This is something we have to do and we've obviously clone it before. :fir. Pcezko vs is Weil, having done it before is not a good recommendation. Mr. Inks. From ray perspective, this is completely independent of the other decision. What we have here today is the fact that we 1 South Bend Redevelopment Commission Rescheduled Regular Meeting ­June 8, 20 6. NEW BUSINESS (CONY.) A. , Public Hearings (3) continued... have more money than we had anticipated in. the Sample-Ewing Development Area account. So we're appropriating them for uses in the Sample- Ewing Development Area. It's completely independent of the Airport froni our perspective. It's just we have more money than we expected. because of the penalty s1tuation and. we're asking to appropriate that money for a use in Sample- Ewing that we ident1fied as a use before in the of lglnal budget process earlier this year in another source to use instead of using the city's precious capital. dollars, using the TI F's own resources to cover its debt service payment. Mr. 'ee o vs is What's the prognosis of this. Are we still. going to be paying off debt in the foreseeable future on this area: Mr. Inks: Yes. Mr. ecz ows l: Axed we're using yip all the funds, pretty much, of the extra that we had in order to cover this and then somewhere down the road maybe we are going to be tapping into city funds? Mr. Irks: At this point, the Sample -Ewing Development Area as a stand -alone area does not and for the foreseeable future wi.11 not have the capacity to cover its debt service. It's short about $300,000 a year. Now v that situation will probably improve somewhat as the AJ Wright tax abatement phases out. 22 South Bend Redcvelopni.ent Comnussion Rescheduled Regular Meeting —June 8, 2007 6. NEW BUSINESS (CONT.) A. :Public Hearings (3) continued... And it could ebange significantly with the success of Oliver Plow Industrial Park and the Studebaker Industrial :darks. But based on what we have today there will be a coy flnu.in shortfall for the foreseeable future. Ms. Jones asked if there was an one else who wished to speak. Where was no one else who wished to speak regarding Resolution Igo. 2339. Ms. Jones closed the publIe (4) Commission approval requested for Resolution No. 2339. Mr. Blake made a motion to approve Resolution No. 2339. Ms Janes seconded the motion. The vote was two in favor, one abstaining. The motion failed. (5) Public hearing on Resolution No. 2329 amending the Airport Economic Development Area Development Plan. (adding 1633 Knoblock to the Acquisition List) Mr. Witwer noted that the Notice of Hearing for Resolutlou No. 2329 that was to have been published in the South Bend Tn' b ne did not get published. The notices will be republished for public leaning on July 6, 2007 at 10:00 a.m. 3 RESO LUT 10 N No. 2.339 DID NOT PASS NO P UBj.,jc HEA RING ON RESOLUTION No. 2329 Sout h Bend Redevelopment Commisslol . Rescheduled Regular Meeting —June 8, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings (6) Commission approval requested for Resolution No. 2329. No action. requested since there was no public hearing. (7) Public hearing on Resolution. No. 2343 amending the Airport Economic Development Area Development Plan. (adding 1625 and 1.629 Knoblock to the Acquisition List) .Mr. Witwer noted that the Notice of Hear.1.11.9 No PUBLIC HFARING CAN RESOLUTION No. 2343 Tor Resolution No. 2343 ilia[ was �o naive been published in the South Bend Tribune did not get published. The notices will be republished for public hearing on July 6, 2007 at 10: 00 a.m. (8) Commission approval requested for Resolution No. 2343. No action requested since there was no public bearing. B. Receipt of Bids (1) Receipt of Bids for Art Mosaic Disposition Parcel (81x7 and 903 E. Sample t. Mr. Inks noted that one bid was rceei ed by the 10:00 a.m. deadline. The bid was from erid Enterprises, LLC. Mr. Leone checked the bid to make sure i South B end .Redevelopment Commi.sswn Rescheduled Regular Meeting —June 8, 2007 6. NEW BUSINESS (CONY.) B. Receipt of Bids (1) continue . . Mr. pec l o sl i asked where this property 1s located. Mr. Inks responded that it is across the street from the Grace Church property mentioned earlier, next to Quality Glass. Mr. Inks explained why the Commission owns this piece of property. Art Mosaic Tile owned property on both sloes of the street. We wanted their property on the south side of the street for the Southeast park, but in order to purchase one past, we had to p rcll..se flie elffire property. we fl -d, no use for the property on the norm side of Sample, so we put it up for sale. Mr. pec l ows i asked if we own the property all the way to the restaurant on the corner of Lincoln.way and Sample. Mr. Schalliol responded that ire oven all the property on the south side of the street to incolnway. This property is on the north side of the street. We never intended to purchase property on the north side of the street. Mr. Leone noted that the bid meets all the requirements. The minimum bid price was $621100. The price offered by .Tend .Enterprises LLC was $62J00. The perfo .fiance guarantee included was $6,300. .Mr. Inks asked that the Commission refer it to staff for immediate review, to be brought back with a recommendation at the end of the agenda. 041 Soutli Bead. Redevelopment Commission Rescheduled Regular Meeting —,Tune s, 2007 6. NEW BUSINESS (CONY.) B. Receipt of Bits (1) continued... The Commission referred the bid of Jerid Enterprises LLC to staff for review and recommendation at the end of the meeting, (Mr. W. H. Buckles interrupted the discussion because he came to speak related to the public hearing on Resolution No. 2329 and did not get a chance to speak since the public nearing was not held.) Mr. Buckles: The Commission is taking these houses on Knoblock near nee, i -n y got two appraisals, the average of which was $59,000. Have any of you picked up realtor's book and tried to find a louse for $59,000 that's not in a blighted area? I don't know how they can tale these properties like this and expect somebody to go out in their back yard and dig up a can with another $25,000 in it to put with it to get anything even near that. There aren't hardly any louses in these realtor books that aren't $70,000 or $75,000. I've been driving around looking at then and they are in way gorse condition than what the city's offering 9,000 for. They are the sane square footage and everything. I thinly it's a disgrace what they are.. ,I don't know where they come up with the appraisal. You carat find a house in this town. I was surprised when I vent out to see what was out there for $75,000. You wouldn't want to live in it. Ms. Jones told Mr. Buckles if he would like to bring his comments to the July 6 meeting. he could do so. 26 COM M Is S ICON REFERRED "1.1E B rD0F JERI NTERP RISEs L .., -r s"rAFF FOR EV IEW AN[) RECOMMENDATION South Bend Redevelopment Commission Rescheduled Regular .Meeting . ..... Ju.iae 8, 2007 6. NEW BUSINESS NT. B. Receipt of Bids (2) Receipt of Bids for Enzyme Research Disposition Parcel (412 S. Lafayette Blvd) Mr. Inks noted that one bid was received by the 10:00 a.m. deadline. The bid was from wightinan Petrie. Mr. Leone looked over the hid and found 11 to be non - conforming. It was not actually a bid, but a letter of Interest, asking to negotiate with staff w1th respect to this property. Mr. Inks noted that if no confom -iing bid is received, the receipt of bids remains open for 0 days. After 30 days, staff is Free to negotiate terms that the Commission feels is in the best interest of the community. The Commission referred the letter of interest from w ghtman Petrie to staff for review. C. South Bend Central Development Area 1 Commission approval requested for Memorandum of Lease with Dhanw .n ri, Inc. (Michigan St. Shops) Mr. Leone Hated that under Indiana law leases of more than three years must be recorded. Sometimes the terms of a lease itself are such that the huge ai ount of detail j.sn't necessary to record as a public document. The purpose of recording a Memorandum of Lease is to put the public on notice that there is a lease whose to COMMISSION REFERRED THE LETTE R OF INTEREST T FROM WIGHTMAN PET IE T STAFF FOR REVIEW South. Bend Redevelopment Commission Rescheduled Regular Meeting —June 8, 2007 b. NEW BUSINESS (CONT.) C. South Bend Central Development Area 1 continued.,.. exceeds three years. It is a more eeonomi.eal way to meet the requirements of the law. Mr. Peczkowski noted that this lease has a three year option to renew. He asked whether the Commission commonly l agrees to renewal options. Mr. Inks responded that it is very common. We are always interested in keeping tenants on a long term basis and providing that optlo .. . pe zkeNws i asked whp.-Aher the cu l-A. rates are locked Ire foir the option years. Mr. Inks responded that the built -in rate increases are in the full lease. Upon a. motion by Mr. Peezkowski, seconded COMMISSION APPROVED TFIF. MEMORANDUM OF by Mr. Blake and unanimously eaiTied, the .EASE WITH DHANWANTARI, INC. (MICHIGAN ommi.ssion approved the Memorandum of T. HOFPS Lease with harata., Inc. (Michigan St. Shops) D. Sample -Ewing Development Area There was no business in the Sample -Ewing Development Area. E. Airport Economic Development Area (1) Commission approval requested for proposal for professional services In the Airport Economic Development .Area. (Title work for Knoblock property acquisition) Mr. Witwer noted that to prepare for South Bend Redevelopment Commission Rescheduled Regular Meetln.g —Yune 8, 2007 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (1) contioo ed. . acqu1sition of the three Knoblock properties .l .), 1629 and t 62 we need title searches performed. We also want to have a title search on Lot I. B in . lac t o m Corporate Park to have it ready for future disposition. 'Meridian Title has submitted a proposal for a fee of $600 for the four title searches. Staff recommends approval. Upon a motion by Mr. Blare, sceonded by Mr. Pcc l o vsl i and unanimously carried, the ommissx ii approved the reouest for proposal for professional services in the Airport Economic Development Area and accepted the proposal from Meridian Title for the scope of services and fce proposed. (Tlticwork for Knoblock property acquisition) (2) Commission approval requested for proposal for professional services in the Airport Economic Development Area. (Preparation o legal descriptions for Knoblock property acquisition) Mr. Wit rer noted that the Abon arc e Group submitted a proposal in the amount of $2900 to wr *te a new legal deseription for the expanded Airport Economic Development Area. The new legal description is needed for Resolution Igo. 2348 expanding the .A. to include LaSalle Square and nearby industrial property as well as adding the Sample- Ewing Development Area to the Airport .economic Development Area. Staff recommends approval. 29 COMMISSION APPROVE"D "'FIE REQUEST FOR PROPOSAL FOR PROFESSIONAL AL SERVICES IN THE AIR.POR -i- c DEVELOPMENT AREA AND AC:C:EP- 11.1 - � llffi PROPOSAL FROI i MERI IA TITLE FOR 1-HE SCOPE OF SERVICES AND FEE PROPOSED `j rLE WORK FOR KNTOBLOCK P.ROPERTY ACQUISITION) South Bend Redevelopment Commission Rescheduled Regular Meeting —June 8, 2007 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (2) continued... Upon a motion by Mr. Blare, seconded by Mr. Peczkowski and -unani o sly carried, the Commission approved the request for proposal and accepted the proposal from The A. onmar he Group for the scope of services and fee proposed. F. South Bend Medical Services District 'here was no business in the South Bend Medical Services District. G. west Washington-Chapin Development Area Where was no business in the West Washington- Chapin Development Area. H. South Side Development Area (1) Commission approval requested for Resolution loo. 2345 related to acquisition of property in the South Side Development Area, (4223 S. Main for improvements associated with the Main - Lafayette crossover) Mr. Sehalliol noted that the Commission adopted Resolution No. 2334 earlier in the meeting adding two properties to the Acquisition List of the South Side Development Plan. Resolution No. 2345 authorizes the sending of a purchase offer in the amount of $65,500 for those properties. The property contains one house. Staff requests approval. 3 CONI M ISSIO ON APP ROVF -1 D THE REQUEST FOR PROPOSAL AND A(`('T.P'r1-.`.D'1T1E PROPOSAL FROM Ti,ih ABOt RClII E'Gi OUP FOR SCOPE OF SERVICES AND TEE PROPOSED. South Bend Rede el.oprnei .t Comrnissl'o Rescheduled Regular Meeting --June 8, 2007 G. NEW BUSINESS (CONY.) H. South Side Development Area (1) Upo Mtio by 'M r. Make, seconded by Mr. Pee kowski and unanimously carried, the Commission approved l esol boll No. 2345 related to acquisition of property in the South Side Development ent Area. (4223 S. Main for improvements associated with the Main- Lafayette crossover) 1. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood lelopr.eiit Area. J. Douglas Road Economic Development Area Where was no business in the Douglas Road Economic Development Area. I. other (1) Staff report on disposition of property in the South Bend Central Development Area. (formerArt Mosaic Tile) Mr. Schalliol reported that the proposal from Jen*d Enterpr'ses LLC (William Arksorus, signatory). The amount bid for the property was $62, 100, wh1ch was the minimum offering price. The use proposed is as the headquarters and business office for a local taxicab company. The use, therefore, conforms to the bid specifications. The performance guarantee submitted of $6,300 exceeds the 10% required. Staff is pleased to have this offer for property it expected to have to demolish and sell for $1.00. We have an opportunity to sell it to a business for 31 OM M IS [ON A1)PROV i iisoLUTION No. 2345 R LA'Z`ED YI"O ACQUfSI'I ION of= PROPEL TY IN THE ou'rI -I SIDE DFv ELOPML -M` ARFA. (4223 S. MAIN FOR IMPROVEMENTS ASSOCIATED WITH THE MAIN- AFAYETTE CROSSOVER South Heed Redc elo me t Commission Rescheduled Regular Mecting —June 8, 2007 6, NEW BUSINESS (CONY.) K. other (1) continued... considerably more than that and allow a viable business to grow, Staff recommends accepting the proposal.. Upon a motion by Mr. Blake, seconded by Mr. Peczkowski and unanimously carried, the Commission accepted the proposal from Jerid Enter rises for the former Art Mosaic Tile property at 817 and 903. E. Sample Street in the South .fiend Central Development Area. (2) Staff report on disposition of property in the South Bend Central Development Area. (former Enzyme Research property) Mr. Schalliol read the letter of interest from Wight man Petrie Environmental into the record. Dear Redevelopment Commission Members Wightman Petrie Incorporated requests approval by the board to negotiate with the Redevelopment Commission staff for the purchase of the above referenced property. Over the past several months we have had serious interest in this property to the extent that we have visited the property with staff on u couple of occasions. During those visits we have made an attempt to evaluate the property for conversion to our use as a professional services office building. We have some mirror concerns with regards to the valuation of the property versus necessary repairs and improvements which 32 COMMISSION ACC EF" ED 111 PROP) AL F R.0 M JER.I E `I`ERPRI E F R TFIE FOR EI AI -1- MOSAic TILE PROPERTY AT 817 AND 903 E. SA M P LE S TREr-yT I N 111E So u -n -I -', ilk r- -NTRAL DFVF L0 PME 'r AREA. South Bend Redevelopment Commission Rescheduled Regular Meeting —June 8, 2007 6. NEW BUSINESS CONT. K. Other (2) continued... would he reqicirecl, foY occupctncy. Our firm opened its ,South Bend office in 2003 with a staff of two professionals. Since then we have grown to cc staff of f fteen with the intention of nrldr.'ng an caciclitianrzl staff immediately. Our current location an Scott Street has nearly net its capacity. It has been our intention as well to be apart of the location of the downtown business district to continue to help in the development of the downtown area. In regard to our current property, we have negotiated a sale with our neighbor which will allow them to expand their business as well. We view this proposed project with the Enzyme m Research building and out current property as a winning opportunity, not only for oases, but for other downtown business, and importantly, the City of South Bend. If you have any questions regarding this matter, please feel free to contact one at any time. Sincerely, David Rafinsky Mr. Schalliol noted that the bid did not meet the bid requirements, As notes earlier, it is no - eonfor ing bid. Staff would like to continue negotiations with WIghtman Petrie and, hopefully, bn'ncF a proposal to the Commission after the 30-clay waiting period. OLIth Bend Re 1e e opment ConinlISS1011 Resche(.l led Re ular Meetin —June 8, 2007 6. NEW BUSINESS (CONS'.) K. Other (2) continued... Upon a mofion by Mr. Pec kowsl i, seconded by Mr. Blake and unanimously carned, the 'oninussion referred the letter of interest fl-on-i Wlahtma n Petric to staff 61- ft11-th r negotiations and staff i -eport a kc,:l later me tin . 7. PROGRESS RE PORTS There was no report.. 8. L 'k EX1' ('.-'OM MISSION J, Y{ 1ETI1 YY 1 -he ncxI nic::etin of`tl�e Rede�,elopn-iel i C'.'o n��ms�,lori. is schedL11C —d for Friday, J ne 22, 2007 at I 9. o .) R M There being no further business to come before the Rede velopment Commission, Mr. Pec kowski made a notion that the meeting be .djOL[rned. Mr. Blake seconded the iuotion and the meetin was a journed at 11:.1oa.m. �k )AJL { Donald E. Inks, .rector . Commission referred the letter of mterest from Wiglitman Petrie to staff` for further necyotiations and staff` deport at a later meetili ADJOURNMENT Marcia I. Jon K id n Sotith Bencl R (le elopment Commission l e ehe(l Lil ed . e ul ar M eti � —June , oo EXECUTIVE SESSION June 8,2007 The Sout h Bead Redevelopment Commission met in '.Executive Session on. Friday, June s, 2007, at 9:15 a.m. The meeting was held in Room 1200 County -City Building, 227 West Jefferson, South Bend, Indiana, for the purposes specified ire I.C. - 4 -l.. -6.1 . Commissioner "s Present: Marcia Jones, President, Hardie lal e, and Ken Pcczkowski. others Present. Jeff Gibney, ExeeLitive Director, Coninitinit & Econoni.ie Development, Don Inks, Director, Economic Development, Attomcy Charles le Leoilc,, Bill Schal114, Nick Witwer., Andy Laurent', and Jennifer Laurent. The Commission certifies that no topic was d]seLIssed other than the sub' ���atter specified ' the blmc No trace. h Fxcctiti +e k es -,s,' n �Nvas adjourned at 10: a.m. CITY OF SOU"I'll BEND, D ART r 8 E Y T O F .1G.J R.. Y E . _.i O P M 1 Y T k - ---- - .- .- ._..- Marcia I. Jones - - President 4-1 ?) - .._--------------- - - - -- South.Bend Redevelopment Commission