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HomeMy WebLinkAbout06-22-07 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULED REGULAR MEETING .urge 22, 2007 10:00 a.m. 227 west Jefferson Boulevard Presiding: Marcia I. Jones, President South s Bend, Indiana. 1. ROLL CALL Members Present: Ms. Marcia .tones, President Mr. Karl King, Vice President Mr. Greg Downes, Secretary Ir. Hardie Blake, Jr. Mr. Ken Peczl o vsl i Legal Counsel: Mr. Charles S. Leone, Esq. Redevel opm.ent Staff. Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Jeffrey Gibney, Executive Director Mr. Bill Se a.11iol, Economic Development Specialist Mr. Andrew Laurent, Economic Development Specialist Ms. JennI er Laurent, Economic Development Specialist Mr. Nicholas Witwer, Economic Development Specialist Others Present: Ms. Jamie Loo, South Bend Tribune Ms. Rita I op .la Mr. Tom Price, Mayor's Office Mr. Dave Feeteau, Community Development Mr. Marco Maxiani, DTSB Ms. De rah Jennings, Property Ma ger Mr. Phil Byrd, South Bend Heritage Foundation Ms. GlendaRae Hernandez Mr. John Peddycord Mr. David Rafinsky, Wightman Petrie Mr. Lee Woodward Ms. Regina Emberton, CB Richard Ellis Mr. Jai es Sharpe Ms. F.I. Sharpe Mr. Pat Beu a Ms. Eva Patterson South Bcnd Rcde elopme t Commission ssion Rescheduled Regular Meeting — June 22, 2007 2. APPROVAL OF MINUTES A. Approval of Minutes of the Rescheduled Regular Meeting of "ric, June 8, 2007. Upon a potion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved the Minutes of the Rescheduled Regular Meeting of Friday, June 8, 2007. 3. APPROVAL OF CLAIMS OMMISSION APPROVE 'i -FIE MINUTES OF THE RESCHEDULED REGULAR MEETING ETI 01 FRIDAY, JUNE , 2007 Redevelopment Commission Claims submitted Junc 22, 2007 for approval. 324 AIRPORT A. I A Sop o, Nussbaum, Inabnit & Kaczmarek 76.50 I anch, Harper & Associates, Inc. 2,645.00 Ken Herccg & Associates, Inc. 2,.0 414 SAMPLE WING GENERAL Mil olajcwsl i & Associates, Inc. 1.,053.00 420 FUND TIC' DISTRICT-SBCDA GENERAL NI 'SCO 82.01 CB Richard Ellis 3.)31.7.73 Indiana Michigan Power 10148 South Bend Water Works 344.86 Sopl o, Nussbaum, 1nabn1t & Kaczmarek 2,633.1 Architecture Design Group 240.00 433 FUND II E DEVELOPMENT Sopl o, Nussbaum, Inabnit & Kaczmarek 11 ,036.25 46,117.01 Mr. Pec kowsl i questioned whether some claims were included in the total. Mr. Inks agreed they were late additions to the claims list and did not appear to have gotten added in. The total of the claims 1s $46,617.01. 2 South Bend Redevelopment Commission Rescheduled Regular Meeting – June 22, 2007 3. APPROVAL OF CLAIMS (CUNT.) Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved the Claims submitted June 22, 2007, and ordered cheeks to be released. 4. COMMUNICATIONS A. Communication from Anne Kolaczyk regarding the Eddy Street Commons Development. Mr. Inks noted that this C o r unl' eat]' M was received, though it is not related to a current agenda item. It expresses concems about the density of the . d.dy St. project and the preservation of the Notre Dame woods. It arrived by e -mail June 13, 2007. Ed and Ai re Kolaczyk reside at I I I E. Pokagon, To: Members of the South Bend Plan Commission As residents in the overall neighborhood affected by the Eddy Street Commons development, we were first excited by the ides of the college town area and then appalled by it as the plans grew from something charming to something totally out proportion to the space available. It looks like the decision makers believe if some is good, In is better, and lots guaran tees finan ci a I success. Freed always gu ran tees failure though. An over- built rr will end up with empty storefronts, empty apartments and condos, and unrented hotel rooms—except onfootball weekends. South Bend is not a densely built are, but one of open space and tree-lined streets. The downtown area certainly has many multi-storied buildings but it's hard t find many over three stories anywhere else in town. Instead, you see one and two story homes and businesses and wide expanses of awn and gardens. How then can a densely built COMMISSION IO APPROVED `1 -1 -IE CLAIMS SUBMITTED JUNE 225 20075 AND ORDERED THE CHECKS TO BE RELEASED COMMUNICATION FRONT ANNr KOLACZYK REGARDING EDDY STREET COMMONS DEVELOPMENT South Bend Redevelopment Commissioll Re cbeduled Regular Me ti – June 22, 2007 4. COMMUNICATIONS (CONY.) A. continued.., development off s - stony apartments and a six- or nine -story note fit in The pan presented by the Kite Realty Group might be appropriatefor New York or Chicago but not a city like Sout h en(L In fact, they have admitted t hey've never clone something like this in a town. like South Bend before. We don't need to be the ,steep part of their learning curve. The Commons should he a gentle transition./rom residential to the campus, not a piece of r {o e an landscape in the middle of r charming residential neighborhood. It should look more like south Bend's Munn street business district, than Hyde Park in Chicago. The loss of h Notre Dame Woods is of concern to us also. The sinall planne park- setting that the University isplanning isfine but a landscaped park won't take the place o f acres o f woods wi th the underbrush that provides some to hundreds, r f' not thousands, of small animals. r ima s that will roam our neighborhoods orhoocs nc }e t he woods are destroyed. Th .e University s park won't be la age enough to provide the natural pollution filters tart th e woods pro vide, yet in t rein place will he even more pollution creators of buildings, blacktop an parking garages, We've recrcl that the city is excited about the tax prospects of such an area as more people live and spend in the city. Well, take it from oozes who live in the neighborhood— many of the people interested in the area will be football weekend alumni. They will come for a half dozen weekends a year ancl the rest of the time the property will lie vacant and, other than the property taxes paid, nothing is added to the local economy. We have four such houses on our block alone (out of twelve homes), and they coo not add to a neighborhood. 4 South Bend Redevelopment Commission Rescheduled Regular Meeting — Jane 22, 2007 4. COMMUNICATIONS (CONY.) A. continued,.. We hope you will think long and hcerd about this development and what it really means to the community most affected by it. The people proposing this plan do not live here and have no plans to do anything but make money off of us. They have no stake in protecting and preserving our neighborhoods or our green spaces. Please don't be touched by their greed but keep the people of South Bend foremost in your decisions. 5. OLD BUSINESS Ms. Jones noted that Bill SchalIiol delayed leaving on his vacation in order to attend this ineeting. She asked that his items be moved up on the agenda to enable him to leave as soon as possible. There was no objection. Old Business was postponed and items 6.A. (1) and (2 ), 6.B. (1), (2), (3), {4 }, and 6.C. (1) and (2) were moved up on the agenda. 6. NEW BUSINESS A. Public Bearing 1 Public Nearing on Resolution No. 2341 amending the Northeast Neighborhood Development Area Development Plan. (Adding AAS property to acquisition list, 1 129 South Bend Avenue) Mr. King disclosed that he is a member of the Board of Tnistees of the Northeast Neighborhood Revitalization Organization. He has no financial or pecuniary interest in the Northeast Neighborhood Revitalization Organization (N-NRO). He participates as a volunteer and understands that he has no conflict of interest that would prohibit. him. 5 South Bend Redevelopment Commission Rescheduled Regular Meeting — June 22, 2007 6. NEW SIN SS (Cole'.) A. Public Hearing (1) continued... from participating in the discussion or voting on these .1terns. However, he did want to male that relationship known as there are number of items on this agenda related to the NNR's work in the Northeast Neighborhood Development Area. Mr. Inks noted that the public hearing file is complete, containing the following items: (1) a copy of the Notice of Hearing; 2 a cop} of Resolution No. 41; an affidavit from ' aro l Smith, Advertising Director of the South Bend Tribune, that the Notice of Dearing was published in that newspaper on June 8, 2007; 4 an affidavit from Richard A.ndr sia , Classified Manager of the Trl- Count r News, that the Notice of Dearing was published in that newspaper on June 8, 2007; (5) a statement from Bill Scballiol that affected property owners and registered neighborbood associations were notified of the Public Hearing by Memorandum on June 85 2007; as of 10 :00 a.m., June 22, 2007 there were written remonstrances es received related to Resolution 160 r, 1= I Mr. Schalliol noted that Resolution No. 2341 will amend the Northeast Neighborhood Development Area Plan by adding twelve parcels to its acquisition list. Seven are located at 1129 South Bead Avenue and presently include the office, showroom and warehouse for Aa 's Rent -All Company, Inc. The other five parcels are five vacant lots adjacent to the business. A list of the tax key 6 South Bend Redevelopment Commission Rescheduled Regular Meeting — June 22, 2007 6. NEW BUSINESS (CONY.) A. Public Hearing (1) continued... numbers associated with each cluster is shown below. Tax Key # for . a' OfficelShowroontlWarehouse 18 5099 35175 18 5099 3518, 18 5099 3519, 15 5099 3520, 1.8 5099 35211 18 5099 3523, 18 5099 3524 `ax Key #s Aay's Vacant Lard 18 5099 3502, 18 5099 3504 IS 5099 35 K 8 5099 3508, 18 5099 3509 Acquisition of these properties is consistent with the Development Plan's goals and objectives of removing inconsistent land uses, creating new residential development opportunities and neighborhood connectivity in the Northeast Neighborhood Development Area. Staff requests approval of Resolution No. 2341. Ms. Jones opened the Public Dearing for PUBLic HEARING ON RF.so[,u-r10N No. 2341 whoever wished to spew regarding Resolution Igo. 2341. There was no one who wished to spear regarding Resolution No. 2341. Ms. Jones closed the Public Hearing for whatever action the Commission wished to tale. Mr. Pec ko sl i asked the total acreage to be acquired. Mr. Schalliol responded that it's about 1.5 acres. South Bend Redevelopment Commission Rescheduled Regular Meeting — June 22, 2007 6. NEW BUSINESS (CONY.) A. Public Hearing (2) Commission approval requested for Desolation No. 2341. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved Resolution Igo. 2341 amending the Northeast Neighborhood Development ent .Area Development Plan. (Adding AAYS property to acquisition list, 1 129 South Bead Avenue) Mr. King noted that he has been involved working in the Northeast Neighborhood Development Area since he was a Councilman. . for the area in 1998. 'He worked extensively during that time with the Sharpes, owners of Aays Rent -1. You couldn't ask for people who were better neighbors and more supportive of neighborhood revitalization. He commended their years of service in support of the neighborhood and their willingness to be incouveu.tenc d by selling their property to further the revitalization of the neighborhood. B. Northeast Neighborhood Development Area (1) Commission approval requested for proposal for professional services in the Northeast Neighborhood Development t Area. (Appraisals, AAY's acquisition, 1129 South Bead venue Mr. Schalliol noted that the acquisition of Aa 's lent -All. requires appraisals and title wort. Proposals were received from Jerome Michaels in the amount of $3,500 and from CO MMIS [ON APP OVF- -D t so1AJT[ON No. 2341. A M EN D I N G "I F1E No i -i-i iHAST N E IG I.1BOR 1100 D D EV EL PM EN T AREA D EV E LO PM ENT PLAN. (ADDING AAYS PROPERTY TO ACQUISITION ITION LIST, 112 9 S OUTti BEND AVM NUE South Bend Redevelopment Commission Rescheduled Regular Meeting — June 2, 2007 6. NEW BUSINESS (CONT.) B. Northeast Neighborhood Development Area (1) continued... Rick Fitts In the amOL[Ilt of $950. For Rick Pitts, the appraisals would be update appraisals. Two appraisals are required for acquisition. Staff recommends accepting both proposals. 'Upon a motion by Mr. Icing, seconded by Mr. Downes and unanimously carried, the Commission approved the request for proposals for appraisal services and accepted the proposals from Jerome Michaels and Rich Pitts for the scope of services proposed and an amount not to exceed $4,600. (2) Commission approval requested for proposal for professional services 'in the Northeast Neighborhood Development Area. (Title vorl , AA'Os acquisition, 1 129 South Bend Avenue) Mr. Soballiol noted that a proposal has been received from Meridian Title to perfoma the Utle work for $150. Staff recommends accepting the proposal.. Upon a notion by Mr. Ding, seconded by Mr. Downes and unanimously carried, the Commission approved the request for proposal for title work and accepted the proposal from Meridian Title for the scope of services and fee proposed. (3) Commission approval requested for Resolution No. 2349 related to acquisition of property in the Northeast Neighborhood Development Area. 9 COMMISSION APPROVED TI-IE REQUEST FOR P ROPOSA LS FOR APPRAISAL SI✓[ VICES AND ACCEPTED THE PROPOSALS FROM JEROME MICHAEL MICHAELS AND RiCK PITTS FOR THE SCOFF O SERVICES PROPOSED AND AN AMOL1NT I O C` TO EXCEED $4,600 COMMISSION APPROVED - I -I -IE REQUEST FOR . PROPOSAL FOR TITLE WO RK A N D ACCEPTED THE PROPOSAL FROM MERIDIAN TITLE FOR THE SCOPE OF SERVICES AND FEE PROPOSED South Bend Redevelopment Comr issioll Rescheduled Regular Meeting — June 22, 2007 b. NEW BUSINESS (CONY.) B. Northeast Neighborhood Development Area (3) continued.,, (authorizing a purchase offer and setting . the offering price for AAYs, 1129 South Bend Avenue) Mr. Schalhol motel that Resolution No. 2349 authorizes the sending of a purchase offer for the ay's Rent-All property and sets the offering price for the purchase of twelve properties generally located at 1129 Sout . Bend Avenue. These properties will be used to facilitate the redevelopment of the Triangle Neighborhood within the Northeast Neighborhood Development Arca. These are the same properties added to the acquisition list earlier in the meeting. The average appraised value for the sever. commercial lots is $539,000.00. The average appraised value for the five vacant lots is $22,750.00. The combined value for the twelve parcels is 1,750.00. Staff requests approval of Resolution 'No. 2349. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved Resolution No. 2349 related to acquisition of property in the Northeast Neighborhood Development Area. (Ray's Beat-All) 1 COMMISSION APPROVED RESOLUTION No. 2349 RELATED TO ACQUISITION OF PROPERTY IN TIJI_= NORTHEAST NEIGHBORHOOD DE EI_.( PI LENT AREA. AA's RENT -ALL) South Bend Redevelopment Commission Rescheduled Regular Meeting T June 22, 2007 6. NEW BUSINESS (CONY.) B. Northeast Neighborhood Development Area (4) Staff report on acquisition of property In the Northeast Neighborhood Development Area. (Counter offer from AAYS) Mr. Sehalhol noted that the S arpes had their n appraisal done. Taking that appraisal and other neighborhood factors into consideration they have submitted a counter offer through their attorney, John Peddycord, in the amount of $750,000. The counter offer has been reviewed by several parties. Staff recommends accepting the counter offer. Mr. King made a motion that the counter offer frorn Sharpe Real Estate Company LLC in the amount of $780,000 for seven parcels known as Aay's Rent -All (1 129 South Bend Avenue) and eve adjacent vacant lots be accepted. Mr. Downes seconded the motion. The vote was four to one with Mr. Peczkowski opposed. The motion carried. C. South Bend Central Development Area (1) Commission approval requested for Contract for Sale of Land with Jerid Enterprises LLC in the South Bead Ventral Development Area. (81'7 and 903 E. Sample St., former Art Mosaic property) Mr. Schalliol noted that at its June 8 meeting the Commission approved the sale of the Art Mosaic File property to .Tend Enterprises. The Contract for Sale reflects all the terms already agreed to by both parties and is signed by Jerid Enterprises. I1 COMMISSION ACCEPTED THE COUNTER OFFER FROM SHARPE READ. ESTATE COMPANY LLC IN THE AMOUNT OF $7801000 FOR SEVEN PARCELS KNOWN As AAY' S RENT-ALL (1129 SOUTH BEND AVENUE AND FIVE ADJACENT VACANT LOTS South Bend Redevelopment Commission Rescheduled Regular lecting — June 22, 200' 6. NEW BUSINESS CONT. C. South Bend Central Development Area (1) continued, Upon a notion by Mr. Downes, seconded by Mr. Peczkowski and unanimously carried, the Commission approved the Contract for Sale of Land with Jcrid Enterprises LLC in the South Bend Central Development Area. (817 and 903 E. Sample St. (2) Staff report on disposition of property in the South Bend Central Development Area. Witmn Petrie Letter of Interest, 412 S. Lafayette Blvd., former Enzyme Research property) Mr, Schalliol noted that at its {Tune 8 meeting the Commission received a Letter of Interest from. Wi ghtman Petrie concerning the Commission's sale of 412 S. Lafayette Blvd. Staff is working to finalize negotiations w1th Wigh.tman Petrie and intends to present proposal to the Commission at its July 20 meeting when the 30-day waiting period will have expired and the Commission can consider an offer less than the minimurn offel'ng price when it event to bid. ightman Petrie is interested in acquiring the property and converting it to a corporate office for the South Bend operations of W ightrnan Petrie, a multi- disciplinary firm. The building will need internal renovation to convert space into offices and work areas for the different teams. The building will require major roof repair, mechanical work, and some exterior renovations to make the building secure. Wherefore, Wightman Petrie has offered $13 1,000 for the property instead 12 COMMISSION APPROVED THE CONTRACT FOR SALE w.- LAND WITH JEI ID ENTERPRISEs LLC I T1-1E So u -ri.i BEN1) C EN TI L D EV ELOPM ENT AREA. 17 AND 903 E. SAMPLE ST) South Bend Redevelopment Commission Rescheduled Regular Meeting — June 22, 2007 6. NEW BUSINESS (CONY.) C. South Bend Central Development Area (2) continued... of the $262,500 required at the Commissi South Bend Redevelopment ent om ission Rescheduled Regular Meeting — June 22, 2007 5. OLD BUSINESS (CONY.) A. Sample - Ewing Development Area (1) South Bend Redevelopment Commission. (Sample-Ewing Development Area) Mr. Inks noted that the public bearing on Resolution No. 2339 was held on June 8, 2007. Commissioners have the Minutes of the June 8 Meeting, including comments and discussion made during the public hearing. Resolution No. 2339 appropriates $239,993, 21.4,993 for debt service in the Sample- Ewing Development t Area and $25,000 for demolition of a building in the Lincoln va - Sample area. The building to be demolished is adjacent to the Southeast Park. It is vacant and needs to be demolished before it becomes a hazard. Mr. Inks noted that this appropriation brings the total appropriation for the Sample -Ewing Development Area in 2007 to $1,025,622. Mr. Pee kowski : The original appropriation was jade on January 19, 2007. In four and a half months we're asking for a % increase over what was originally appropriated. Am f to assume that this isn't done fret? That this i s J U t Rine and we're going to see more? :fir. Inks: ft's unlikely that we'll see more this year. In January we appropriated all of the anticipated revenue our that we had for the Sample -Ewing Development Area.. Since that time we collected additional revenue that we didn't anticipate. Those are the funds we are asking to appropriate now. We did the original appropriation, knowing 14 South Bend Redevelopment Commission Rescheduled I cgular fleeting — June 22, 2007 5. OLD BUSINESS (CONY.) A. Sample - Ewing Development Area (1) continued. *. that the amount would 1lot be sufficient to cover all the debt service payinents in the Sample -Ewing Development Area. We had made arrangements with the Controller's Office and the Common Council to have additional fonds appropriated from other city sources to cover those debt service payments. Now, since we have an unwiticipated revenue source, we're asking to have those funds appropriated and used for debt service payments, in lieu of tapping other city Mr. Pec .owsl is That's the source of th1s9 Mr. Inks: The payment of penalties on the AJ Wright project. Mr. Downes made a motion to approve Resolution NO. 2339. Mr. King seconded the motion. The vote was four to one with Mr. Pec l ows i opposed. B. South Bend Central Development Area (1) Commission approval requested for Agreement for Services by and between the City of South Bend, Department of Redevelopment, acting by and through the South Bend Redevelopment n ent Commission and Downtown South Bead, Inc. Mr. Inks noted that this agreement was tabled at the May 8, 2007 meeting. Since that time there have been some changes made to the one presented at that time: Section 4. 1 COM M [ ]ON AP PROVi.[) Ri OLUTION NO. 2339 A SUPPLEMENTAL APPROPRIATION RESOLUTION OLUTION OF THE CITY OF SOUTH BEND I EDEVI''L PM N -F COMMISSION. AMPLE- WING DEVELOPMENT NT AREA) South Bend l cdevelo mcnt Commission Rescheduled Regular Meeting — June 22, 2007 5. OLD BUSINESS (CONY.) B. South. Bend Central Development Area (1) continued... Compensation, B. Shared Parking Lot Fees was revised to make it more clear that maintenance of the lots is to be the first use of those funds; any remaining revenues from the lots may be retained by DT B and used as a management fee. Also, a new Exhibit I was added that outlines the specific responsibilities related to maintenance of the parking lots. Another change was that in Exhibit B there has been a change in the in ur nce requirements on page 17, paragraph 19 to $700,000 for any one person and not less than $5,000,000 for any one incident. The previous levels were $500,000 and $3,000,000. These levels are prescribed by state law. They charge effective January 2008 and since this contract will. be in. effect at the beginning of the year, we wanted this contract to, reflect thosc requirements. Mr. Pec l o vsl i asked what Nor. Leone's findings were related to conflict of interest and Conn i- mssion members' po sib on on the T TSB hoard of directors. Mr. Leone responded that two Commission members were serving as board members of DTSB. They have both resigned those positions. Their purported conflict of interest was where there right have been conflicting loyalties rather than ones involving pecuniary interests. Simple resignation from DTSB is sufficient to resolve that issue. Mr. Peczkowski asked if he was sure that is the case under Indiana law. Mr. Peczkowski understood there was a one year minimum 16 South Bend Redevelopment Commission Rescheduled Regular Meeting — gone 2, 2007 5. OLD BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... waiting requirement. Mr. Leone responded that that wait is designated under the portion of .Indiana Code that deals with Profiteering from Public Service. It prohibits an individual who exercises control over a contract or purchase with an agency from then leaving goveniment service and profiting from that contract on the outside. If there were a contract that this Commission were to approve and any of the Commissioners were to step outside, to be employed or have an interest in that contract within a one year time period, that would violate this particular statute. Mr. Leonc doesn't see that in this situation. Mr. Peckovski: Cornpeti.ti.ve bidding requirements, pg 6, Article K. Especially in respect to this issue, the $275,000 primafily for beautification projects, have competitive bids been taken on that? Mr. Irks did not know. Mr. Peckovski : There was a Center for the Homeless bid that was offered to do the sane services at substantial savings. I've not heard whether it was for comparable services. Even if it wasn't, why weren't other competitive bids entertained? Mr. Leone: I don't know whether or not that has happened. This contract does have auditing provisions that are new and will be in similar contracts going forward that will provide the Controller's office the ability to audit the financials and the performance South Bend Redevelopment Commission Rescheduled Regular Meeting — June 22, 2007 5. OLD BUSINESS (CONY.) B. South Bend Ventral Development Area I continued... under the agreement. That adds a level of protection for the Commission. Mr. Pec o vs is It looks to me like we're doing $222,000. That's in granite here in the offer and $48,,000 for streetscape and $5,000 for business recniitmcnt. Plus, item types mentioned at the bottom. Regarding the $222,000 offer, who is doing the work and why wasn't that competitively handled? Mr. Leone: It's a different issue here. The competitive bidding that this requires is to the extent that these funds are used, are contracted out by ITS, there must be competitive bidding. IV's not this contract itself that's being competitively bid. It is the use of funds under this agreement that must be competitively bid. Mr. . King : I understand from reading in the newspaper that the South Bend Common Council actually took an action to approprIa.te this am.o nt of money to ITS . So, that's a decision that's already been sae by the legislative body. I'm thinking that all we're doing here now is settling on the terms of the agreemcnt of what we get for the money. Mr. Inks: What the Council approved is oIT funds. This is the TIF finding that the Commission has appropriated this year. Mr. Ding: So, this is separate from the Council's. Yes. 1 South Bend Redevelopment Commission Rescheduled Regular Meeting g — June 22, 2007 5. OLD BUSINESS (CONY.) B. South Bend Central Development Area (1) continued... Mr. Pec kowsl is The other one was $275,000, for a total package of a half million. Mr. Blare made a motion to approve the Agreement for Services by and between the City of South Bend, Department of . Redevelopment, acting by and through the South Bend Redevelopment Commission and Downtown South Bend, Inc. Mr. Downes seconded the potion. The vote was four to one. Mr. pec l o sl i was opposed. The Motion passed. 6. NEW BUSINESS (CONY.) B. Northeast Neighborhood Development Are (5) Commission approval requested for Agreement for Services by and between the City of South Bend, Department of Redevelopment, acting by and through the South Bend Redevelopment Commission and Northeast Neighborhood Revitalization Organization, Inc. Mr. Inks noted that the term of the agreement is for calendar years 2007 and 2008. The amount is $62,500. It has a reporting requirement for quarterly status reports and it provides a listing of services, all of which are related to acquisition, relocation, and demolition of property in the T iangle area of the Northeast Neighborhood. It also requires maintenance of those properties in that area.. There is a project budget attached that details 1 COMMISSION APPROVED THE AGREEMENT FOR SERVICES BY AND BETWEEN THE CITY OF SOUTH BEND, D EPA RTMENT OF RE DEV E LO P M ENT, ACTING BY AND TH ROUGH TFIE ouri -i BEND REDEVELOPMENT COMMISSION AND DoWNTOWN SOUTH BEND, INC. South Bend Redevelopment Commission Rescheduled Regular Meeting —,dune 22, 20 6, NEW BUSIlvESS (CONY.) B. Northeast Neighborhood Development Area (5) continued... ow $937,500 will be spent on acquisition, relocation and demolition in the area. These funds will not actually go to the NR.o. The NN'RO is providing services to the Redevelopment Commission for a fee of $62,500. The Commission will disburse funds related to this pr oJect budget, but it will be facilitated by the NNR.. These funds have been appropriated by the South Bend Common o Council for a total of 1,000,000 to conduct these activities. This contract authorizes the'NNRO to work, on the Commission's behalf to negotiate, relocate, demolish, etc. .Mr. Leone noted that the Commission may be seeing more of this type of agreement. This is a new structure instead of hat's been done in the past where money has gone to organizations to acquire and dispose of property. Going forward the Commission will be the body that goes through the acquisition process using its norrnal procedures. The contract will be for services only to facilitate the Commission's processes. Mr. ec l owsl i : Do we supply office space for the NNR` Mr. Inks: We don't pay directly for office space. The City, through the Common Council, appropriates $75,000 annually to fund the NN 's administration budget. But that is in conjunction with a number of other 20 South Bend Redevelopment Commission Rescheduled Regular Meeting — June 22, 2007 6, NEW BUSINESS (CONY.) B. Northeast Neighbourhood Development ent Area (5) continued... institutions that are providing significant amounts of funding for the NNRO. So, we pay a share of their admin budget, but it's a minority share. 1r. eclovskx: I notice that as a provider address they list 803 Lincoln way West. Is that the site of their offices` 1r. King: That 1s the address of South Bend Heritage Foundation which shares offices 1th. the N-NR . l r. Pec l o vsl is The requested services in Exhibit A. We are really giving there $62,500 to essentially do A & B because C through H are the other monies? Mr. Inks: No, they will be doing all of these services, including the negotiation of purchase price, the closing of purchase transactions, the relocation (they will work with the occupants to determine, what relocation benefits arc appropriate. They will then supply ups with the documentation so that Svc can process a claim to pay those relocation expenses. They will do all of the services, listed, but the final payment of any of these will go through the redevelopment Commission. They will be acting almost as staff to the Redevelopment Commission for the completion of these activities. Mr. 'ec l owsl is Which ofour offices are not able to do that coordination? I'm trying to understand why the NNRO is being hired 21 South Bend Redevelopment Commission Rescheduled Regular Meeting — June 22, 2007 b. NEW BUSINESS (CONY) B. Northeast Neighborhood Development Area (5) continued... to be the coordinator when it seems like this is something that should be done in house. Mr. Inks: Two reasons. (1) The TIRO is .ti.rxlatey familiar with the neighborhood and the 111dr lduals there. They are in a unique position to negotiate and acquire the properties. 2 We have limited staff` capacity in the department. While we can do an. acquisition or two of properties here and there, this project involves over 80 parcels of property to be acquired over a short period of tine. 'It is beyond our capacity to actually go out and negotiate these transactions. Mr. ec l o sl i : In Appendix. A to exhibit C on pg 16, what's the rationale for gyring COIT funding fFor the $937,500? Plus, ill dote I. all these other possibilities of estimated costs are going to add another 95000. Why is that included as just note? :11. seems life it's doubling the total. Mr. Inks: It is not doubling the total. It was intended to be, since there is at least $82,500 that is not specifically targeted to a specific property, we know the properties that necd to be acquired, we know the properties that need to be demolished, and whcre the relocation costs will be, but we know we cannot fund them all. As you negotiate in any situation, you are not exactly sure of the order in which you may be able to acquire properties or demolish them or relocate people. What we've done is provide a total list of everything that needs to be done. To 22 South Bend Redevelopment Commission Rescheduled Regular Meeting — June 22, 2007 6. NEW BUSINESS (CONY.) B. Northeast Neighborhood Development Area (5) continued... ... the extent that they can acquire a property that is identified here and that there are funds available In the contract, they can use it to do that activity. It does not increase the amount. Mr. Pee owsl is It's in essence a wish list. Mr. Inks agreed. Mr. Downes made a motion to approve the COMMISSION APPROVED THE AGREEMENT FOR Agreement for Services by and between the SERVICES BY AND BETWEEN THE CITY OF SOUTH BEN D. D EPA RTMEN -r C)r, R FH) i -rV I-OPm FN -l'7 City of South Bend, Department of ACTING BY AND THROUGH iH -1 -HE oLi -i -i-i B1--ND Redevelopment, t, acting by and throug the r r.VELOPMENT COMMISSION AND South Bend Redevelopment .ent ommission and NORTHEAST NEIGHBORHOOD REVITAL,IZATION Northeast Neighborhood Revitalization ORGANIZATION, INC. Organization, Inc. Mr. Blake seconded the motion. The vote was four in favor with Mr. Pee l o vsk]. abstaining. The notion c ai-ri e . 6. NEW BUSINESS Col 1. C. South Bend Central Development Area continued... (3) Staff report on disposition of property in the South Bend Central Development Area. (Letter of Intent on behalf of Christian Science Reading Room to lease 129 S. Michigan St. 1s. Laurent noted that a Letter of Intent was submitted by CB Richard Ellis, the Commission's agent for leasing and management of the Michigan Street Shops, on behalf of the Christian Science Leading Room. The First Church of Christ, Scientist, 23 South Bend 'Redevelopment Commission Rescheduled Regular Meeting — June 22, 2007 6. NEW BUSINESS (CONY) C. South Bend Central Development Area (3) continued... proposes to lease the available space at 129 S. Iicblgan, next door to Quizno's for a five year term. Correspondence from Lee Woodward, Board Chaiman, is included with the Fetter of Intent for your review which outlines the background of the Christian Science denomination, the premise of the outreach centers located in cities throughout the world, their reasons for relocation within the downtown and ho they propose to -use the new space, including hours of operation, layout and the welcoming, contemplative study atmosphere they wisb to create. Staff believes the use to be one that will contribute to the diversity of service and retail uses along Michigan Street. The Reading Room operates as a retail bookstore, but -is not intended to be financially self supporting; i.tead it is funded as a fixed budget item from the finances of the First Church of Christ, Scientist, located at 1237 N Ironwood, South. Bend. It will be the responsibility of the tenant to apply for any applicable nonprofit exemptions for property tax assessment for the lease interest. Staff recommends accepting the Letter of Intent and authorizing staff to begin negotiation of a lease which will be brought back to the Commission for approval. Mr. Peczl o vsl i asked if they plan on applying for nonprofit exemptions on taxes. Ms. Laurent responded that the issue was PE South Bend Redevelopment Commission Rescheduled Regular Meeting ­- June 22, 2007 6. NEW BUSINESS (CONY.) C. South Bend Central Development Area (3) continued... addressed in the Letter of Intent. Taxes are included in the CAM charges. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously eamed, the Commission accepted the Fetter of Intent from Christian Science Reading Rooms. for 129 S. Michigan St. and authorized staff to negotiate teens of a lease, (4) Staff report on disposition of property in the South Bend Central Development Area. (vacant lot next to Commerce Center, east and adjacent to 312 E. LaSalle) Ms. La Urent noted that the Commission owns a parcel of land described as a vacant lot east and adjacent to 31.2 E LaSalle St., about .1. acres. Resolution No. 2322 set the fair market reuse value of the property at $9,400. Bid specif icattons were issued and advertised for receipt on May 4, 2007. No bids were received. Staff has had conversations regarding the property with CB Richard Ellis representatives, agents for Tycore, Ltd., the owner of the Commerce Center building and several parcels comprising its surrounding surface parting lots. Tycore wishes to acquire the parcel and incorporate it into an overall parking improvement ent plan to serve the building. 2 COMMISSION CEPTE -D ''r1 -1E LETTER OF 1NTENT FROM CHRISTIAN SCIENCE READING RoOM FOR 129 S. MICI-11GAN ST. AND AUTHORIZED STUFF TO NEGOTIATE TERMS OF A 1_ A 1—_. South Bend l edevelopni.ent Commission Rescheduled Regular Meeting — June 22, 2047 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (4) continued... The property was originally purchased with tax exempt bond proceeds. Legal counsel has advised that to receive payment for the property firom a private entity for its sole use would potentially be a breach of the bond covenants, which would need to be repaid. In consideration of the relatively nominal valuation of the property, as well as in consideration of the overall investment Tycore plans to br i.n.g to the Commerce Center building and perimeter improvements, it has been determined that it would be appropriate and in the best interest of the Commission to dedicate this property to Tycor 's ownership without remuneration. Staff requests your approval of the tendered offer for acquisition by Tycore, Ltd. and your direction to legal counsel to begin drafting a contract, which would be brought forward for your approval at a subsequent meeting. Mr. Pec ko vs i noted that he sees a pattern of selling Commission o vncd properties at below market value, ar in some cases for free. Maybe we shouldn't be in the busil.ess of investing in properties in the first place. Ms. Laurent responded that government doesn't see it as an investment in the typical sense. We're investing in the broader picture of the downtown. Mr. Downes made a notion to dedicate the vacant lot east of 312 E. LaSalle to Tycore, Ltd. for no remuneration. Mr. Blake seconded the nation. The vote was four in 26 COMMISSION AGREED TO DEDICATE THE VACANT LC T EAST OF 312 E. LA ALLE T T cOR.E, LTD. FOR NO REMUNERATION South Bead Redevelopment Commission Rescheduled Regular Meeting — June 22, 2007 b. NEW BUSINESS (CONY.) C. South Bend Central Development Area (4) continued... favor. Mr. Peclosli abstained. The notion carried. (S) Staff report on consultant proposals for East Bank Master Plan. 1r. Gibney noted that the ' ommission is about to begin a strategic planning process for the East Bank area. The planning process will take place in two phases: the first phase will address an area bounded by LaSalle (N), Jefferson S, St. Joseph River v and Hill St. . We sent Requests for Proposal. (RFPs)to many professional planning organizations and received fie proposals ranging M. price from $49,000 to $185,000. Dun'ng review staff looked for experience and projects completed. Two proposals were provided to Commissioners for review: JJR out of Chicago and .edge out of Memphis, Tennessee. Staff recommends accepting the proposal from JJR. JJR is currently doing the planning for the St. Joseph Regional Mcdical Ccnter site for the NNR . We have been very pleased with the planning that has taken place so far for that, Their proposal says that all stakeholders will be part of the planning process. The process would begin July 1 and be completed in September. Edge is a very new organization with a much smaller portfolio of successful planning projects and the diversity of professionals on the Edge team is much more 11m.1ted, The planning process will be facilitated by the Holladay Corp at no fee to the city. Phase 2 will be for an area from Jefferson to the ' ran po site. 2 South Bend Redevelopment Com' mission Rescheduled regular Meeting — June 22, 2007 6. NEW BUSINESS (CONY.) C. South Bend Central Development Area (5) continued... separate proposal. will be solicited for that phase as soon as phase I is completed. Mr. Gibney noted that there are on file, a few other planning documents prepared over the last five years. The planning that has taken place to date has not built consensus among the property owners on the East .ark. We ant to be sure to build consensus because now is the time to plan for the East Bank area, especially in light of the development that Fite is doing at Eddy St. and the potential develop ment at the St. Joseph Regional Medical Center site, and the South Bend Clinic. Staff recommends mends accepting the proposal. from JJR for $49,000. Mr. King asked if any recomm ndatioll stcmming from this report would be JJl 's recommcndation, not Holladay's. Mr. Gibney responded that that is correct. Mr. Ding asked If the Commission would be the body to consider adopting the recom endatioas as a "plan." Mr. Gibney responded that it would. Upon a motion by Mr. King, seconded by Mr. Gibney and unanimously carried, the Commission accepted the proposal from JJI for an East Bank Master Plan for a fee of $49,000. 8 COO M IS SION ACCEPTED THE PROP ISA1- I~I OM JJR FOR AN EAST BANK MAST L R PLAN FO FEE of $497000 South Bead Redevelopment Commissioll Rescheduled Regular Meeting -- June 22, 2007 b. NEW BUSINESS (CONT.) C. South Bend Central Development Area (6) Commission approval requested for Engagement Letter with May Oberfell Lorber for legal services related to the Key S.B. project. Mr. Inks noted that several weeks ago the city's Legal Department was not able to handle the Rec evcl pment workload, so eve used outside counsel for some projects. We have some other engagement letters in place with Baler & Daniels and Dick Nussbaum. We had May Oberfell Lorber prepare some documents for the KeyBank project and the for the foriner School Corporation A.dmin building. Staff recommends accepting the 'Engagement Letters from May Ol erfell Lorber for both projects. Mr. Downes made a motion to approve the Engagement Letter with May Oberfell Lorber for legal services related to the Key S.B. Project. Mr. King seconded the notion. The vote was four to one. Mr. Peczkows i was opposed. The notion carried. (7) Commission approval requested for Engagement Fetter with May Oberfell Lorber for legal services related to the former South .Bend Community School Corporation Administration Bldg. reuse project. Upon a motion by Mr. Downes, seconded by Mr. Peczko ski and unanimously carried, the Commission approved the Engagement Letter with M Oherfell Lorber for legal services relate a to the former South Bend Community School Corporation Administration Bldg. reuse project. 29 COMMISSION APPROVED THE ENGAGEMENT LETTER WITH MAY OI= ERFELL LORI ER FOR LEGAL SERVICES RELATED TO - I -1-IE KEY S.D. PROJECT COMMISSION APPROVED THE ENGAGEMENT LETTER WITH MAY OBERFELL LORI ER FOR LEGAL SERVICES RELATED TO THE FORMER SOUTH BEND COMMUNITY SCHOOL CORPORATION ADMINISTRATION BLDG. REUSE PROJECT South Bead Redevelopment Commission Rescheduled Regular Meeting — June 22, 2007 6. NEW BUSINESS (CANT.) D. Sample-Ewing Development Area There was no business in the Sample -Ewing Development ,Area. E. Airport Economic Development Area There was no business In the Airport Economic Development Area. F. South Bend Medical Services District There was no business in the South'Bend Medical Services District. G. Nest Wash in ton - Chapin Development elopment Area There was no business In the West Washington- Chapin Development Area. i H. South Side Development Area There was no business in the South Side Development Area. 1. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. 7. PROGRESS REPORTS Mir. Inks noted that the demolition at the South Bend P OGRE s REPORTS Starring Plant by contract is scheduled to be complete by July 13. The contractor befie es they are a little ahead of schedule and may be clone by June 29. Mr. Inks also doted that the Environmental Protection Agency (EPA) is beginning cleanup on the South Bend :bathe building, funded with EPA mon.ey. They will be 30 South Bend Redevelopment Commission Rescheduled Regular Meeting — June 22, 200 7. PROGRESS REPORTS (CONY.) removing ing underground storage tanks, transformers and miscellaneous barrels and envi.ronmental issues on the rest of the property. Mr. Blake noted that he had moved to approve the TSB contract, but he wants to be sure they use competitive bidding for the work they hire out. The other Commissioners agreed and were confident the audit requirements would guarantee eomplia ee as long as they are thorough and detailed audits. 8. NEXT COMMISSION MEETING Ms. Jones noted that the Comm.isslon does not have a E- 1- COMMISSION 1 iFETIN G quorum for its July 6 meting. Therefore, the next meeting of the Redevelopment `elopment ommissio is its Regular Meeting of Friday, July 20, 2007 at 10:00 a.m. Mr. Inks asked pemiission to reschedule the Public Hearings that were to be held on July 6 to July 20. Permission was granted. 9. ADJOURNMENT There being no further business to cone before the Ar)jouRNMENT Redevelopment ent ommission, the meeting was adjourned at 10:50 a.m . Doiald E. hiks, Diree or Marcia 1. Jones, Press ilt 1 South Bend Redevelopment Commission Rescheduled Regular Meeting — June 22, 2007 EXECUTIVE SESSION June 22, 200 The South Bend Redevelopment Commission met in Executive Session on Friday, June 22, 2007, at 9:15 a.m. The meeting was held in Room 1 200 County-City Building, 227 West Jefferson, South Bend, Indiana, for the purposes specified in I.C. 5-144.5-6.1(b)(2)(D). Commissioner's Present: Marcia Jones, President; Karl King, vice President; Greg Downes, Secretary; Hardie Blake, Ken Pec l o s i. others Present: Jeff Gibney, Executive Director, Community & Economic Development, Don Inks, Director, Economic Development, Attorney Charles Leone, Bill Schalliol, Nick Witwer, Andy Laurent, and Jennifer Laurent. The Commission certifies that no topic was discussed other than the subject matter specified in the Public Notice. The ecutive Session was adjourned at 10:00 a.m. CITY of SOUTH BEND, DEPARTMENT of REDEVELOPMENT f MArcia T. J0, S, President Printed Name and 7711c South. Bend Redevelopment Commission 32