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HomeMy WebLinkAbout07-20-07 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING July 20, 2007 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Mr. Greg Downes, Secretary Mr. Hardie Blake, Jr. (Part of Meeting} Mr. Ken Peczkowski Members Absent: Mr. Karl King, Vice President Legal Counsel: Mr. Charles S. Leone, Esq. (Part of Meeting} Mr. Shawn Peterson, Esq. Redevelopment Staff: Mr. Don Inks, Director Mr. Jeff Gibney, Executive Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. Nicholas Witwer, Economic Development Specialist Mr. Robert Mathia, Economic Development Specialist Ms. Kathy Hahn, Economic Development Specialist Others Present: Mayor Stephen Luecke Mr. Tom Price, Mayor's Office Mr. Timothy Rouse, Common Council Mr. Michael Divita, Community Development Mr. Chris Dressel, Community Development Mr. George Adler, Community Development Mr. David Fecteau, Community Development Ms. Debrah Jennings, Property Manager Ms. Jamie Loo, South Bend Tribune Ms. Rita Kopala Mr. Martin Wolfson Ms. Linda Wolfson Ms. GlendaRae Hernandez Mr. Phil Byrd Ms. Sandra Adler Mr. Richard Dettmer Ms. Catherine Dettmer Pastor Charles Jamerson Mr. Jeff McGowan Mr. Steve Infalt South Bend Redevelopment Commission Regular Meeting -July 20, 2007 1. Roll Call (CONT.) 2. APPROVAL OF MINUTES Mr. Len Nelson Mr. Benjamin Silver Mr. Tom Cook Mr. Steve Hartz Mr. Thomas Goerke Ms. Paula Johnson Mr. Andrew Nemeth Ms. Ashley Nemeth Mr. Saulo Perez Mr. Alfonso Sell Pastor Eddie Miller Pastor Greg Frazier Ms. Avis Smith Ms. Kay Marshall Ms. Jean Hanrahan Mr. Greg Hakanen Mr. Bill Cupp Ms. Marguerite Taylor Mr. Gerald Lerman Mr. Hany Shahid Mr. John Milligan Mr. John Wilhite Mr. William Eagan Pat McQuade Mr. Veni Jessup Mr. Luis Espinoza Mr. Jerry Niezgodski Mr. Paul Bartylla Mr. Jan Wilen Ms. Cheryl Ashe Mr. David Rafinski Mr. Mike wells, R.E.I. Mr. Jeremy Stephenson, R.E.I. A. Approval of Minutes of the Special Meeting of Tuesday, June 19, 2007. Upon a motion by Mr. Downes, seconded by Mr. Peczkowski and unanimously carried, the Commission approved the Minutes of the Special Meeting of Tuesday, June 19, 2007. COMMISSION APPROVED THE MINUTES OF THE SPECIAL MEETING OF TUESDAY, JUNE I9, 2007 2 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 2. APPROVAL OF MINUTES (CONT.) B. Approval of Minutes of the Regular Meeting of Friday, June 22, 2007. Upon a motion by Mr. Downes, seconded by Mr. Peczkowski and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, June 22, 2007. 3. APPROVAL OF CLAIMS Ms. Jones took the opportunity to explain the process that precedes Approval of Claims. The items listed on the Claims List represent Redevelopment's operating expenses as well as project costs. Money for operating expenses is generally appropriated at the beginning of each year. There is a budget process and the budget is appropriated by Common Council resolution. Many of the claims on the list come right out of that appropriation. Projects are first proposed, then vetted, discussed and approved. Costs for those projects appear in the form of claims for appraisals, surveys, construction and demolition work, environmental work, etc. All of this work goes through a bid or proposal process. Contracts for the work are issued. When they are billed, claims will appear on the Claims List for approval. In addition to the Commission's approval of the claims, further oversight occurs through audits and the State Board of Accounts. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, JUNE 22, 2007 Redevelopment Commission Claims submitted July 20, 2007 for approval. 305 SBCDA 2003 BOND KONE Inc. 324 AIRPORT AEDA Abonmarche Ken Herceg & Associates, Inc. Selge Construction Co., Inc. 4,800.00 4,820.00 31,833.50 162,717.38 Cleveland Rd. Median Relocation 3 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 3. APPROVAL OF CLAIMS (CONT.) 324 AIRPORT AEDA continued... Selge Construction Co., Inc. DLZ DHA Wightman Petrie Trans Tech Electric, L.P. CFH Landscape Services 497,920.47 Brick & Olive Rd Construction 23,000.00 560.00 17,500.00 285,632.00 Traffic Signal Communications 1,455.00 414 SAMPLE EWING GENERAL Mikolajewski & Associates, Inc. CFH Landscape Services 420 FUND TIF DISTRICT-SBCDA GENERAL CB Richard Ellis Indiana Michigan Power Schindler Elevator Corporation AT&T South Bend Water Works Ampco System Parking Downtown South Bend, Inc. NIPSCO CB Richard Ellis May Oberfell Lorber Danch, Harner & Associates, Inc. True Value SBD Reprographics Tri County News South Bend Tribune CFH Landscape Services 422 FUND WEST WASHINGTON CFH Landscape Services 428 FUND AIRPORT 2003 BOND Walsh & Kelly 430 FUND SOUTH SIDE CFH Landscape Services 619 FUND BLACKTHORN lvleaaownrooK Uoir Uroup lnc. 2,015.00 4,625.00 1,036.49 322.95 127.68 27.48 187.33 4,345.57 148,500.00 Beatification Program 8.76 617.45 5,674.50 2,950.00 22.25 285.98 60.84 86.94 610.00 298.50 251,944.88 Dylan Dr Extension 635.00 8,000.00 $ 1,462,620.95 4 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 3. APPROVAL OF CLAIMS (CONT.) Mr. Peczkowski asked about the Downtown South Bend claim for $148,500. He wondered if that expense is out of the $225,000 we appropriated previously, or is that in addition to the funds already appropriated? Mr. Inks responded that it is part of the $275,000 previously appropriated from TIF funds by the Redevelopment Commission. Upon a motion by Mr. Downes, seconded by Ms. Jones and unanimously carried, the Commission approved the Claims submitted July 20, 2007, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications other than those related to the Public Hearings; those will be read in conjunction with the Public Hearings. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS Mr. Inks asked to consider items 6.A.(3) and 6.A.(4) first. There was no objection and the items were moved to the top of New Business. A. Public Hearing (3) Public Hearing on Resolution No. 2351 confirming a resolution designating and declaring certain areas as economic development areas to amend the boundaries of the Airport Economic Development Area by adding the LaSalle Square and Marycrest/Hurwich areas to the Airport Economic Development Area, by designating the expansion areas as part COMMISSION APPROVED THE CLAIMS SUBMITTED JULY 2O, 2007, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS 5 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... of the Airport Economic Development Area Allocation Area No. l and by consolidating the Sample-Ewing Development Area into the Airport Economic Development Area and to amend the Development Plan for the Airport Economic 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 copy of Resolution No.2351; (3) An affidavit from Carol Smith, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on July 6, 2007; (4) An affidavit from Richard Andrysiak, Classified Manager of the Tri- CountyNews, that the Notice of Hearing was published in that newspaper on July 6, 2007; (5) A statement from Nicholas Witwer that on July 6, 2007 affected property owners and registered neighborhood associations were sent notice of the Public Hearing; (6)A a statement from Nicholas Witwer that on July 6, 2007 the taxing units were sent Notice of the Public Hearing; (7) The mail was checked prior to the meeting. As of 10:00 a.m., July 20, 2007, there were no written remonstrances received related to Resolution No.2351. Mr. Witwer noted that the Declaratory Resolution No. 2348 was passed on Jun 19, 2007. The Area Plan Commission and Common Council passed their corresponding resolutions. The issue is now back to the 6 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... Commission in the form of Confirming Resolution No. 2351. Mr. Witwer noted that the consolidation with Sample-Ewing Development Area and the addition of LaSalle Square and the Marycrest/Hurwich areas give the city opportunity to direct funds to these areas in need of revitalization. Ms. Jones opened the Public Hearing on PUBLIC HEARING ON RESOLUTION N0.2351 Resolution No. 2351 for whoever wished to speak. Mayor Luecke: The city has had some great success in the Airport Economic Development Area bringing new investment and new jobs and generating a revenue stream in the TIF accounts. It was brought to our attention by Charlotte Pfeifer and members of the neighborhood around LaSalle Square that it would be important to extend the Airport TIF to that area in order to make some public works investment there and other things that would encourage additional private investment. We thought that was a great idea for not only LaSalle Square, but also for other west side areas that lacked resources. Therefore, we have drawn the boundaries to some additional west side areas as well as LaSalle Square. The connection of these areas is one of usage. They are all commercial/industrial areas. And it also ties into the Sample-Ewing Development Area to allow us to continue and expand on some of the work we've done there in terms of clearance of Studebaker buildings to make way for new investment 7 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... and new jobs in that area as well. I support this resolution and ask your favorable action. Marguerite Taylor: Representing the Northeast Neighborhood Council. We want to throw our support behind Resolution No. 2351. Thank you. Council Member Timothy Rouse: We support this, as you made mention, but we need to impress on this Commission that after much dialogue and discussion, the Council and the Administration agree that the first order of business will be LaSalle Square. We're excited about being able to do that, but with emphasis on LaSalle Square. GlendaRae Hernandez: 702 E. South Street. Today I'm speaking on behalf of the Community Forum for Economic Development. The Community Forum for Economic Development supports the expansion of the Airport Economic Development Area to include the LaSalle Square and Marycrest/Hurwich Areas, and the Sample-Ewing Redevelopment Area. The Community Forum is an organization that includes participants from throughout St. Joseph County. What unites us is our desire to increase living standards and opportunities for area residents-in other words, to support economic development in our communities. Since its formation, the Community Forum has advocated for including the LaSalle 8 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... Square area into the Airport TIF district. The LaSalle Square area is directly adjacent to the current Airport TIF boundary and is in need of revitalization. We also support adding the Marycrest/ Hurwich area and the Sample-Ewing Redevelopment Area to the Airport TIF district. Completing the preparation of these areas for future economic development could have an even greater impact on the revitalization of South Bend. South Bend's City Plan discusses the necessity, when planning economic development, "for awareness of the community's assets and liabilities in order to build on the positives and reduce perceived weaknesses." South Bend's West Side is an historic and current asset. Use of available economic development resources will strengthen our ability to make necessary improvements and build on this asset for the benefit of our community, the entire city, and all of St. Joseph County. We petition you to adopt today's resolution and look forward to our mutual efforts to revitalize our west side neighborhoods. PASTOR MILLER: Faith Apostolic Ministries. We are the property owners of the LaSalle Square. We have with us today Mr. John Wilhite, president of the Board of Real Estate, Indiana University Bloomington. 9 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... We've had a comfortable relationship with them. They've made it very comfortable for us to acquire that property. We've invested hundreds of thousands of dollars to revitalize the LaSalle Square and we certainly support this resolution. We welcome any changes to beautify that area and attract retail. JOHN WILHITE: Thank you Pastor Miller for that promotion. I am with the Indiana University Foundation. We were happy to sell the property to Pastor Miller and the congregation. We still own the piece a couple of blocks from there and Nick and I are going to talk. Naturally, we're in favor of this resolution also. Jerry Niezgodski: Lincolnway West Gateway Association. LaSalle Square is in the heart of our neighborhood association boundaries. I'd also like to speak in favor of Resolution No. 2351. As we've said before, we see this as a positive step forward and we look at what has recently happened in the Northeast Neighborhood, the partnerships they used to move forward with their desires to make it a better area. We want to use that as a model to work with some of the other industry such as Bosch and Honeywell, and the neighbors, and definitely Rev. Miller and the congregation there, so that we can make LaSalle Square-there's a gem there on the Northeast side that's about to be uncovered, we look at this the same way. We look at this hidden gem that has great potential. We urge you for favorable passage of this resolution. 10 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... Avis Smith: I live right across the street from the Faith Apostolic church. I want to know what the impact is on my mother's property. Her property is located right in the area where they are talking about doing redevelopment. My mother is 83 and doesn't really understand what's going on. I'm here on her behalf. I'm for redevelopment in that area. I'm an entrepreneur, myself, so if I can take advantage of whatever is being redeveloped in that area, then I'm all for it, too. Mr. Inks responded to her question in general. If there is property that folks want to sell, we may take a look at that. In general, the city is not interested in buying property. Our role in the LaSalle Square area will be public improvements and beautification. There is nothing but positive news on the way for her mother. Paula Johnson: LaSalle Park Neighborhood Association. Even though we are on the other side of the track from the LaSalle Square area, we also support the resolution. Mr. Inks noted that there was one letter of support for Resolution No. 2351. July 9, 2007 To Commission Members: We urge you to vote yes on the Resolution 1Vo. 2348, on July 20, confirming that 11 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... LaSalle Square and the 1l~arycrest/Llurwich areas will be included in the Airport TIF. Thank you, Suzanne and Thomas Bulllock 843 Forest Ave. There being no one else who wished to speak regarding Resolution No. 2351, Ms. Jones closed the public hearing for whatever action the Commission wished to take. (4) Commission approval requested for Resolution No. 2351. Mr. Peczkowski: Actually, am I right in seeing that we are going to be appending the Miami Corridor to the four districts we have already put together? My concern is that this is just the tip of an iceberg of something that is out of control. It's ensuring the future of indebtedness to be passed on to our grandchildren for them to sort out by adding.... I have no problems with the LaSalle Square item. When it was first presented to us, that was fine. But then when they added Hurwich, when they added Sample-Ewing, and now it's going to be more districts added to this. We are taking from the golden goose, we're taking all the golden eggs we can get and spreading them out as best we can. My fear is that this is going to be acheck-into-cash mentality. We're quickly turning this over with our TIFs. We're trying to do too much with a small area (the Airport district) and trying to 12 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings () continued... feed too many groups that are deserving. My problem is the other stuff that has been added later. Like any bad bill that goes through Congress where we're going to do this and then all of a sudden "well let's have a bridge in Alaska, and let's have this added on, let's have this added on," all being put together on one bill. I'm sorry, but I can't take it in this form. If it was just LaSalle Square area, I'd have no problems. Mr. Downes made a motion to approve Resolution No. 2351. Mr. Blake seconded the motion. Resolution No. 2351 passed on a vote of three to one. Mr. Peczkowski was opposed. (1) Public Hearing on Resolution No. 2350 modifying and amending, and confirming, as modified and amended, a resolution establishing a Housing Program and Housing Allocation area in the Northeast Neighborhood Development Area and amending the Northeast Neighborhood Development Area Development Plan. Mr. Inks noted that the Public Hearing file is complete, containing the following items: (1) A copy of the Notice of Hearing; (2) A COMMISSION APPROVED RESOLUTION N0.2351 CONFIRMING A RESOLUTION DESIGNATING AND DECLARING CERTAIN AREAS AS ECONOMIC DEVELOPMENT AREAS TO AMEND THE BOUNDARIES OF THE AIRPORT ECONOMIC DEVELOPMENT AREA BY ADDING THE LASALLE SQUARE AND MARYCREST/HURWICH AREAS TO THE AIRPORT ECONOMIC DEVELOPMENT AREA, BY DESIGNATING THE EXPANSION AREAS AS PART OF THE AIRPORT ECONOMIC DEVELOPMENT AREA ALLOCATION AREA N0.1 AND BY CONSOLIDATING THE SAMPLE-SWING DEVELOPMENT AREA INTO THE AIRPORT ECONOMIC DEVELOPMENT AREA AND TO AMEND THE DEVELOPMENT PLAN FOR THE AIRPORT ECONOMIC DEVELOPMENT AREA 13 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings () continued... copy of Resolution No.2350; (3)An affidavit from Carol Smith, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on July 6, 2007; (4) An affidavit from Richard Andrysiak, Classified Manager of the Tri- CountyNews, that the Notice of Hearing was published in that newspaper on July 6, 2007; (5) A statement from Bill Schalliol that on July 5, 2007 affected property owners and registered neighborhood associations were sent notice of the Public Hearing; (6) A statement from Bill Schalliol that on July 5, 2007 the taxing units were sent Notice of the Public Hearing; (7) The mail was checked prior to the meeting. As of 10:00 a.m., July 20, 2007, there were no written remonstrances received related to Resolution No.2350. Mr. Schalliol noted that the Commission approved declaratory Resolution No. 2344 on June 19. That same day the St. Joseph County Area Plan Commission adopted a resolution approving the declaratory resolution. On June 25 the Common Council approved a resolution approving the resolution of the Plan Commission. As a final action, confirming Resolution No. 2350 is now before the Commission. Exhibit B contains the Findings of Fact necessary to declare a housing program. Exhibit C contains the amendment to the Northeast Neighborhood Development Plan. 14 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings () continued... Ms. Jones opened the Public Hearing for PUBLIC HEARING ON RESOLUTION N0.2350 whoever wished to be heard concerning ResolutionNo. 2350. Marguerite Taylor: I think passing this resolution (Resolution No. 2350) is vital to the over $250,000,000 that's being put into the northeast neighborhood. We ask that you pass this resolution. Greg Hakanen: I'm with the University of Notre Dame. This appears to meet all of the requirements of the mission of this board. It eliminates blight, encourages new development, expands the tax base, and creates new jobs. So we ask your support for this initiative. Mayor Luecke: I think this is an exciting opportunity for us, in conjunction with the master plan for redevelopment of the Northeast Neighborhood, the creation of the residential TIF really allows us to emphasize keeping this neighborhood a diverse neighborhood, diverse in so many different ways, but particularly in economic ways as well. By doing this it helps with infrastructure that will support the new houses in the Triangle area, 30% of which are guaranteed to be developed for moderate, affordable home ownership. That's an important consideration for the neighborhood and an important consideration for development in the City of South Bend. I encourage your positive vote on this. 15 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings () continued... Phil Byrd: South Bend Heritage Foundation. As some of you know, it took about three years through the state legislature to get legislation that would enable us to use residential properties in the form of tax incremental financing. Although this housing program covers an area greater than the Triangle, it is extremely important to the Triangle because we're looking to do a significant number of infrastructure improvements there. This will provide some of the funding for those improvements. Linda Wolfson: Community Forum on Economic Development. On Monday of this past week we testified in favor of the Eddy Street Commons project, primarily because it might provide the resources for the revitalization of the northeast area. So, of course, we would support this resolution as well. Council Member Timothy Rouse: This has been a great opportunity. I was with Phil Byrd as we got the residential TIF approved. It was a lot of work and we appreciate all of you who participated in that. This is where the rubber hits the road. If it doesn't get approved here, that hard work is really in vain. I do support it. Thank you. Jean Hanrahan. Northeast Neighborhood Council. I moved onto the northeast side in March 2006, into an NNRO rehabbed home. In the sixteen months that I have lived on that block it has already revitalized. I am very 16 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings () continued... excited about what's happening on the northeast side. Jerry Niezgodski: Lincolnway West Gateway Association. While the members have not voted on this, I know that most of the people on the west side are in full support of this on the northeast side. Once again, we see this as an opportunity to learn from their experiences and apply it to our future successes on the west side. There being no one else who wished to speak regarding Resolution No. 2350, Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (2) Commission approval requested for Resolution No. 2350. Mr. Blake: I've come in from vacation to vote on this and the LaSalle Square resolution. I'm very much in favor of this resolution. I promised my wife I would leave by 10:30. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2350 modifying and amending, and confirming, as modified and amended, a resolution establishing a Housing Program and Housing Allocation area in the Northeast Neighborhood Development Area and amending the Northeast Neighborhood Development Area Development Plan. COMMISSION APPROVED RESOLUTION N0.23SO MODIFYING AND AMENDING, AND CONFIRMING, AS MODIFIED AND AMENDED, A RESOLUTION ESTABLISHING A HOUSING PROGRAM AND HOUSING ALLOCATION AREA IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA AND AMENDING THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA DEVELOPMENT PLAN 17 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings (5) Public Hearing on Resolution No. 2352 amending the Airport Economic Development Area Development Plan. (adding 1625,1629 and 1633 Knoblock to acquisition list) Mr. Witwer noted that Resolution No. 2352 will amend the Airport Economic Development Area Development Plan by adding three properties to the acquisition list: 1625,1629 and 1633 Knoblock. St. Mr. Inks noted that the public hearing file is complete, containing the following items: (1) A copy of the Notice of Hearing; (2) A copy of Resolution No.2352; (3) An affidavit from Carol Smith, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on July 6, 2007; (4) An affidavit from Richard Andrysiak, Classified Manager of the Tri- CountyNews, that the Notice of Hearing was published in that newspaper on July 6, 2007; (5) A statement from Nicholas Witwer that on July 6, 2007 affected property owners and registered neighborhood associations were sent notice of the Public Hearing; (6) A statement from Nicholas Witwer that on July 6, 2007 the taxing units were sent Notice of the Public Hearing; (7) The mail was checked prior to the meeting. As of 10:00 a.m., July 20, 2007, there were no written remonstrances received related to ResolutionNo.2352. Ms. Jones opened the Public Hearing for PUBLIC HE~NG oN RESOLUr1oNNo. 2352 whoever wished to speak regarding Resolution No. 2352. There was no one who 18 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... wished to speak. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (6) Commission approval requested for Resolution No. 2352. Upon a motion by Mr. Downes, seconded by Mr. Peczkowski and unanimously carried, the Commission approved Resolution No. 2352 amending the Airport Economic Development Area Development Plan. (adding 1625,1629 and 1633 Knoblock to acquisition list) (7) Public hearing on Resolution No. 2353 amending the South Side Development Area Development Plan. (Providing for a voluntary rehab program) Mr. Inks noted that the Public Hearing file is complete, containing the following items: (1) A copy of the Notice of Hearing; (2) A copy of Resolution No.2353; (3) An affidavit from Carol Smith, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on July 6, 2007; (4) An affidavit from Richard Andrysiak, Classified Manager of the Tri- CountyNews, that the Notice of Hearing was published in that newspaper on July 6, 2007; (5) A statement from Bill Schalliol that on July 5, 2007 affected property owners and registered neighborhood associations were sent notice of the Public Hearing; (6) The mail was checked prior to the meeting. As of COMMISSION APPROVED RESOLUTION N0.2352 AMENDING THE AIRPORT ECONOMIC DEVELOPMENT AREA DEVELOPMENT PLAN. (ADDING 1625,1629 AND 1633 KNOBLOCK To ACQUISITION LIST 19 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... 10:00 a.m., July 20, 2007, there were no written remonstrances received related to ResolutionNo.2353. Mr. Schalliol noted that Resolution No. 2353 relates to section 4.B.(10) of the development plan. That section of the development plan is related to project area activities and processes for improvement of the development area. The proposed amendment allows for creation of programs for voluntary repair and rehabilitation of buildings and improvements within the South Side Development Area. Mr. Leone explained the need for this change to the development plan. As part of our comprehensive look at all of the city's programs for repair and rehabilitation, corridor programs, etc., we wanted to try to find the most efficient and effective way of accomplishing the programs that have been going on for years. We're trying to find better ways to do them, ways that are well supported by the statutes and the most appropriate mechanisms. As part of that analysis we determined that there are more effective ways, by using the Redevelopment Commission, for some of these processes on certain corridors and certain neighborhoods, to use the Board of Works for others and then, with the assistance of the Common Council and more specific types of allocations, to go ahead and try to rework the way in which these plans are put together. 20 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... Therefore, adding this language allows the Commission to serve as a conduit for some of the repair and rehabilitation processes along certain corridors and in certain neighborhoods within South Bend. We feel it is a more effective mechanism, a more effective way of doing this. It's really a mechanical change in the way we're doing some things. Mr. Inks noted that this relates to the Facade Matching Grant program that has been running on the commercial corridors for a number of years. At a future meeting we' 11 bring back to the Commission a program to continue the facade matching grants in various areas under the jurisdiction of the Redevelopment Commission. At this time we're just amending the plan to provide for a voluntary rehab program that will be defined and brought before the Commission at a later date. Ms. Jones opened the Public Hearing for PUBLIC HE~NG oN RESOLUr1oNNo. 2353 whoever wished to speak. There was no one who wished to speak regarding Resolution No. 2353. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (8) Commission approval requested for Resolution No. 2353. Mr. Peczkowski: If the programs are voluntary, what are the programs doing? Are they primarily informational, telling people 21 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... that these grants are available? Is that what these programs are doing? Mr. Inks: Historically, the facade matching grant program has been offered on the commercial corridors and it is a 50/50 match program where half the money is provided by the city, half by the business. So it's voluntary in nature, people are applying for those funds. This just provides the framework for the Commission to approve that type of program in areas under its jurisdiction. The funding will, as it has in the past, come from other city resources. Mr. Peczkowski: What is it that the programs are doing that isn't already out there in the sector? By and large, anybody who is going to be doing a facade improvement knows about this. What is it that the program is doing? These programs that we're seeking to create? Mr. Inks: We're not seeking to create a program. This would be the continuation of an existing program. Mr. Peczkowski: OK. Because the language here is "this amendment allows for the creation of programs." Mr. Schalliol: In the South Side Development Area, specifically South Gateway, this program doesn't currently eXlst. 22 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... Mr. Peczkowski: Does not currently exist. That's what I needed to know. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2353 amending the South Side Development Area Development Plan. (Providing for a voluntary rehab program) Mr. Blake left the meeting at 10:45 a.m. (9) Public Hearing on Resolution No. 2354 expanding the boundaries of the Airport Economic Development Area, expanding the allocation area for purposes of tax increment financing and amending the Airport Economic Development Area Development Plan. (Adding Miami Corridor to the AEDA) Mr. Inks noted that the Public Hearing file is complete, containing the following items: (1) A copy of the Notice of Hearing; (2) A copy of Resolution No.2354; (3) An affidavit from Carol Smith, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on July 6, 2007; (4) An affidavit from Richard Andrysiak, Classified Manager of the Tri- CountyNews, that the Notice of Hearing was published in that newspaper on July 6, 2007; (5) A statement from Nicholas Witwer that on July 6, 2007 affected property owners and registered neighborhood associations were sent notice of the Public Hearing; (6) A COMMISSION APPROVED RESOLUTION N0.2353 AMENDING THE SOUTH SIDE DEVELOPMENT AREA DEVELOPMENT PLAN. (PROVIDING FOR A VOLUNTARY REHAB PROGRAM) 23 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... statement from Nicholas Witwer that on July 6, 2007 the taxing units were sent Notice of the Public Hearing; (7) The mail was checked prior to the meeting. As of 10:00 a.m., July 20, 2007, there was one written remonstrance received related to ResolutionNo.2354. 7-20-07 To: South Bend Redevelopment Commission Attn: Nick Witwer I own several parcels along the specified "1l~iarni Corridor. " I am opposed to the use of local property tax monies being used to enhance properties along 1~liami Street. As we approach the much needed "Circuit Breaker "era, we rnust~nd ways to reduce the oppressive tax rates our community struggles with. Sincerely, Jerome P. Ivacic 3019 S. Michigan St. A Small Claims Court trial prevents my participating in today's discussion. Mr. Inks noted that another letter was received, not necessarily a remonstrance: 24 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... July 20, 200 City of South Bend, Stephen J. Luecke, Mayor COMMUNITY & ECONOMIC DEVELOPMENT Mr. Jeffrey V. Gibney, Executive Director 1200 County City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601-1830 Gentlemen, As far as a written remonstrance to the proposed amendment, I would like to file this right to first hear in this meeting as to the pros and cons of it at this time as I have not yet heard anything pNO or con for it. So I reserve my Night to respond, till after the meeting, digest what has been said and I have a chance to make a decision about my feelings either pro or con. Sincerely, Thomas F. Cook 2108 Miami Street Ms. Jones opened the Public Hearing on PUBLIC HEARING ON RESOLUTION NO.2354 Resolution No. 2354 for whoever wished to be heard. Paul Bartylla: Instant Lube Inc., Canfield Goulic Enterprises, and J. J. J Properties, a development company in South Bend. I 25 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... would have to agree with Ken on some of the money and how it's being spread out. The city just recently put in handicapped access ways and all the curbs down Miami St. What I found interesting about it is they spent a ton of money doing that, but ten feet away from these access points the sidewalks are so deteriorated you can't even take a wheelchair down it. We're in the process of redeveloping our own property there at 1512 Miami and I just wanted to know how that facade would affect our business, because I've heard through the grapevine that part of this project is to try to eliminate some of the businesses that deal with automotive care. Mr. Leone: This resolution ties into the previous resolution, creating a mechanism to allow programs to operate along Miami St. I don't know that there's necessarily a design to go one way or the other. I think that in part depends on the corridor committee and the way... There's supposed to be a lot of public input into what happens along Miami Street. I don't know if you've had a chance to participate along with the other folks there. I think there was an issue before the Common Council a couple weeks or a month ago, that had to do with an additional business opening up along Miami St. that was automotive related. It didn't get licensing. I don't know that there's any kind of a comprehensive plan one way or the other. 26 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... Mike Divita: Planner for Miami St. To answer some of your questions, the purpose of this is to allow for the facade program. The Instant Lube property would be one that would certainly be helpful to work with on that. There are no plans to eliminate the automotive uses. The use you've had on that particular property is allowed by zoning. Mr. Bartylla: When we purchased the property it was vacant, an old gas station. We spent $300,000 redeveloping it seventeen years ago. Now we're spending about $100,000 redeveloping it again. So, I'd hate to see all that money and effort be thrown away. So, if that's the case, I would have to say I'm in favor. Jerry Niezgodski: I'm kind of curious about more of the details of this. I was not aware of this addition to the Airport Economic Development Area. I defer to Mr. Peczkowski's comments. Actually, my concern is the geography of it all doesn't make sense to me. If you want to add it to a TIF district, fine, but what about the Central Business District, what about some of the others that are in closer proximity to it. I'd be interested in knowing the logic, the reasoning for including this area south and adjacent to other TIF areas into the Airport on the far northwest side. Mr. Peterson: I think I can speak to that. It's actually the Sample-Ewing Area that backed right up to the Miami St. corridor. Since the 27 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... Sample-Ewing Development Area was just incorporated into the Airport Economic Development area, it becomes the Airport Economic Development area that is the logical development area to add the Miami St. corridor to. Mr. Niezgodski: So is this a new area? Or is it an existing TIF? Mr. Peterson: It's just taking the newly defined Airport TIF boundary two properties to the east. Marty Wolfson: 809 Park Avenue. I have a lot of questions about this. I feel inadequately prepared. to be able to comment in a public hearing. I think the Commission has taken some very important steps in making its business understandable and available to the public, such as posting the recent LaSalle Square addition (resolution) to the Web site. Marcia Jones' explanation at the beginning of the meeting about what claims are. I think these are important steps. It's important to continue in that direction. But I think this issue is scheduled for a public hearing today, but I feel there hasn't been adequate preparation to allow the public to participate intelligently in the public hearing. I think Mr. Cook has a good point. It's difficult to know pro or con because we don't know enough about it. There are a number of important questions. Why is this being done at all? We have a corridor program, as I understand now, that's being 28 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... funded by the capital budget in South Bend, so why is there a need to change that? It was just stated that this is going to be incorporated into the TIF district, but TIF funds weren't planned to be used. Then, why are we incorporating it into the TIF district? And why are we focusing on the Miami corridor? There are other corridors: there's Lincolnway West, Portage, Western Avenue. Why Miami and not them? These are some questions. I think there are more. I think a better procedure would have been to have some preliminary discussion on the Commission about it, to perhaps post the resolution on the Web site, to enable the public to more intelligently participate. Mr. Leone: The comments I made to the previous resolution as it related to amending the South Side Development Plan also relate to this. It's essentially a change in mechanics. All of the programs related to the Miami corridor are programs we think are valuable, that we want to keep going. But it's our opinion that there are better mechanisms, as we look at all of the mechanics as we do this, the statutes that create the Redevelopment Commission and allow for the flexibility that the Commission has, as opposed to the Civil City, are greater. In fact, they allow us to do things that we couldn't otherwise do. Bringing the corridor within the Commission's jurisdiction, which we can do conveniently because it's adjacent to an existing area, allows us to do some of the same kinds of things, plus do some 29 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... additional things in that Miami Corridor that we couldn't have done before. Mr. Wolfson: What would those be, Chuck? Mr. Leone: I don't know that there's been a specific plan with respect to additional kinds of programs. Each of the corridors sets its own plans, deciding what's best for that corridor. It then applies for the corridor funds, which I believe are COIT funds. But we think the Commission's mechanisms are more flexible and more effective in terms of being able to get the money to the places it needs to go. It's really a question of mechanics rather than programs at this point. Ms. Wolfson: I'm in agreement with what Marty said. But if I could just add one additional question because I don't believe it was when it was discussed before this body; I believe it was when the previous resolution that was just passed was discussed at the Common Council meeting, the presentation specifically said that the corridors could not/would not (because we raised the question of Lincolnway West because it's such an important part of the LaSalle Square area) and the question was raised and we were told that the corridors would not be included in the expansion of the TIF. So, now I'm confused about a different corridor being .... I' m not for or against it. I agree with why this is a case of not knowing what's going on, so that we can't really have an opinion, intelligently. That is a specific 30 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... question I have. Council Member Rouse: I would just caution that the Council has concerns about TIF anyway. That's public knowledge. I would recommend not passing this, table it. I'm not voting against it, but the Council would have some concerns and I have some concerns and Marty has raised some them. Sometimes we have an impression and it's taken to mean to go different ways. I'm not saying it's not a good resolution, but I would caution that we probably need to do a little more discussion and dialog. Ms. Jones: I concur with you. Greg and I were just saying that I think I would ask this to be tabled. Mr. Downes made a motion to table ResolutionNo. 2354. Mr. Bartylla: Will we get the same notification when you bring it back to the table? Ms. Jones: We'll have to. ~Ue hope we give more notification. We'll try to get Resolution No. 2354 posted on our ~Ueb site. Mr. Downes: There will be legal notification. Mr. Peterson: There are two approaches: you can continue the public hearing which does not require notice to the paper, but we could notify by other means; or you could hold 31 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) A. Public Hearings continue ... another public hearing and give notice through the paper. It's just a different process. You can continue the public hearing if you desire or you can have a brand new public hearing. Ms. Jones: If we continue the public hearing, can we specify a date for it? Is two weeks enough time? Mr. Downes made a motion to continue the public hearing until the August 3 meeting. Mr. Peczkowski seconded the motion. The motion was unanimously carried. (10) Commission approval requested for Resolution No. 2354. Action on item 6.A.(10) was tabled by continuing the public hearing. B. Tax Abatements (1) Commission approval requested for Resolution No. 2355 approving an application for real property tax deduction for property located at 5855 Carbonmill Dr. in the Airport Economic Development Area. (GWSB-Corporate Services, lessee) Mr. Mathia gave the staff report on the project. GWSB owns the property and leases to Corporate Services. The building is not air conditioned. Corporate Services provides print materials and needs a climate controlled environment. So the project is to install a PUBLIC HEARING ON RESOLUTION N0.2354 WAS CONTINUED UNTIL AUGUST 3, 2007 ITEM 6.A.~ I ~) WAS TABLED 32 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatements () continued... new HVAC system. The estimated cost is $300,000 to $500,000. The project would qualify for six years of abatement. The amount to be abated would be $36,944 to $60,157, depending on the ultimate project cost. Taxes to be paid would be $25,430 to $42,380. Mr. Cupp, Corporate Services, noted that humidity control, not temperature control, is what is needed, but that is accomplished through air conditioning. Mr. Peczkowski inquired about the five previous abatements, three of which have yet to expire. He asked how they layered and whether they are abatements on top of abatements? Mr. Inks responded that each abatement is specific to a particular project. Once the resolution is approved by the Common Council there is a two year window to make the improvements on the property. Those improvements are tied to an abatement schedule approved by the Common Council, so if they were doing a building addition five years ago, the investment would have been made and the schedule set, and on that particular investment they would continue to receive abatement. Only new assessed value beyond that prior investment would qualify for the new abatement. Only to the extent that the assessment is increased by the project would the increase to assessed value receive tax abatement. 33 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatements () continued... Mr. Peczkowski: So these numbers we're seeing are based already on that projected increase. Mr. Peczkowski: "Without it they cannot operate the facility." Again, public money is keeping someone competitive. Either the business is run so poorly that it can't find a way to maintain a competitive edge and it needs to ask the public to help finance their business's competitiveness, or, I'm really sorry, but the city's been gouging businesses through the years with taxes that are so onerous that every business needs relief from a government that's obsessed with keeping its coffers filled. I don't know which way to go on this one. I think it's a sad statement on the abatement process once again. Mr. Downes: The reality is that it's a net investment of new capital. It creates new jobs and retains existing jobs. That's a pretty good use of public money. Mr. Peczkowski: It's a use that's being studied now in Chicago and is being shown as fallacious. Mr. Downes made a motion to approved Resolution No. 2355 approving an application for personal property tax deduction for property located at 5855 Carbonmill Dr. in the Airport Economic Development Area. (GWSB-Corporate Services, lessee). Ms. Jones seconded the THE COMMISSION FAILED TO APPROVE RESOLUTIONNo. 2355. 34 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatements () continued... motion. The motion failed on a vote of two to one, with Mr. Peczkowski opposed. (2) Commission approval requested for Resolution No. 2356 approving an application for personal property tax deduction for property located at 2629 Foundation Drive in the Airport Economic Development Area. (Value Production) Mr. Mathia gave the staff report on the project. Value Production is a modern production machining facility. They provide one-stop shopping for design prototypes and production. They have an existing tax abatement for $500,000 for equipment. They need additional machinery to meet demand. The cost of the additional machinery will be $750,000. This will increase their employment and payroll. Mr. Hartz, Value Production, noted that the reason tax abatement is important to businesses is global competition. Wage markets around the world are different than here. Also, Value Production is trying to generate enough profit to build a training facility because there is a shortage of skilled labor in South Bend. If we don't step up and meet the demand here, these jobs will all go overseas. Mr. Peczkowski: If not for property taxes, would you be competitive? If there were no property taxes, would you be more competitive? 35 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatements continue ... Mr. Hartz: Yes. Mr. Peczkowski: So why don't we have a blanket amnesty? Everyone who retains even one job in the city should be given a break? Mr. Hartz: That's not my deal. I would love that, but that's not my deal. Mr. Downes: It's also not the job of this Commission to set property taxes. Mr. Mathia: Well, you' d shift the burden onto residential. Mr. Downes made a motion to approve Resolution No. 2356 approving an application for personal property tax deduction for property located at 2629 Foundation Drive in the Airport Economic Development Area. Ms. Jones seconded the motion. The motion failed on a vote of two to one with Mr. Peczkowski opposed. (3) Commission approval requested for Resolution No. 2357 approving an application for real property tax deduction for property located adjacent to 840 United Drive in the Sample-Ewing Development Area. (Nelson Dee, LLC United Beverage) Mr. Mathia gave the staff report on the project. United Beverage has been at its current location for seventy-five years. The COMMISSION FAILED TO PASS RESOLUTION No. 2356 36 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatements continue ... market for beer has been shifting from cans to bottles, so they need to expand their storage capacity. They want to add 15,000 sft to their warehouse space. The estimated value of the project is $2,500,000. Taxes to be abated during the ten-year abatement are estimated at $424,000. The amount of new taxes expected to be paid during that time is $432,000. Sixty-three jobs will be retained. There may be some new jobs, but United Beverage is reluctant to guarantee that. Mr. Nelson : We're reluctant to say we're adding five to seven new jobs because adding additional warehouse space does not create jobs. It allows us to stay in business. We have an agreement with Anhueser Busch, as their primary supplier for athree-county area, of the square footage we're required to have. We're well short of that right now. We've looked at other locations within our marketing area. We've been in South Bend for a long time and we want to stay here. The addition will allow us to continue in business. We will continue in business somewhere. Five years ago I wouldn't have expected to add ten jobs. I don't want to say we're going to add ten more. Our goal is to grow our business and continue to be a good corporate and community neighbor. We ask for your support. Mr. Schalliol: We started with Len and United Beverage almost seven years ago, 37 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatements continue ... looking at a project where they had two choices, stay on site or grow somewhere else. They chose to stay on site. The Commission worked with them to move United Drive. They bought the land for the new roadway and for the expansion. They are an anchor in the Studebaker Corridor. This is a great opportunity to expand an existing business and keep a building occupied. It's a good use of public funds. Mr. Downes: I agree. This is a good example of a company that could have left an area very easily several years ago and chose to stay and make new investment. It's a good use of public dollars. Mr. McGowan: I'm the accountant for United Beverage with Kruggel Lawton. Currently, United Beverage pays over $40,000 per year in property taxes, both real estate and personal combined. During the abatement period, Bob, I think you said they'd be paying an additional $432,000. This is injecting in excess of $400,000 additional taxes into the community. Mr. Downes made a motion to approve Resolution No. 2357. Ms. Jones seconded the motion. The motion failed on a vote of two to one with Mr. Peczkowski opposed. COMMISSION FAILED TO PASS RESOLUTION No. 2357. 38 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatements (4) Commission approval requested for Resolution No. 2358 approving an application for real property tax deduction for property located at 624 N. Notre Dame Ave. in the Northeast Neighborhood Development Area. Mr. Mathia gave the staff report on the project. Notre Dame Avenue LLC intends to develop eight townhouses at 624 N. Notre Dame Ave. The townhouses will vary from two to four bedrooms,1800 to 2200 sft. The price range will be from $325,000 to 385,000. Total taxes to be abated for each townhome is estimated at $10,252. Taxes to be paid vary by the price of the house from $23,760 to $30,749. Mr. Nemeth noted that this development is south of the Kite development. The townhomes will not be marketed to alumni. Three units are presold so far, all to local families who choose to stay in South Bend. Mr. Downes asked if this property contained the former McGann funeral home. Mr. Nemeth responded that it did. Then it housed Big Brothers/Big Sisters. The property has not paid taxes in twenty years. Mr. Peczkowski: Without the tax abatement, you won't do the project? Mr. Nemeth: I can't say that for sure. That would certainly make things more difficult. It's a big gamble being south of South Bend Avenue. VUe won't benefit much from what's happening around the university. The 39 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatements () continued... reason we're applying for this is we're not looking for a handout, we're taking a piece of property that wasn't paying any taxes at all. We're trying to take something that currently is paying nothing and add something to it. There's just a little bit ofburn-off during that five-year abatement period. When it's all said and done, it's a very big net gain for the community. Mr. Mathia noted that we're in competition with the county and the county generally has taxes much lower than us. We're looking to fill up some of those vacant properties. Upon a motion by Mr. Downes, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 2358 approving an application for real property tax deduction for property located at 624 N. Notre Dame Ave. in the Northeast Neighborhood Development Area. (5) Commission approval requested for Resolution No. 2360 approving an application for personal property tax deduction for property located at 2722 W. Tucker Dr. in the Sample-Ewing Development Area. (Steel Warehouse) Mr. Mathia gave the staff report on the project. Steel Warehouse is applying for three abatements. One at 2722 Tucker Drive, one at 1400 Riverside Drive and one at 1217 Walnut Street. They are installing new equipment at each of these locations. The COMMISSION APPROVED RESOLUTION N0.23S8 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 624 N. NOTRE DAME AVE. IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA 40 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatements continue ... total estimated cost of equipment for all three locations will range from $4,400,000 to $11,000,000. Depending on the exact amount of the investment, taxes to be abated during the five years of abatement are expected to range from $268,000 to $672,000. Taxes to be paid during that time are estimated to range from $140,000 to $350,000. The reason for the wide range is that there is a two year time period for installing the new equipment. Depending on the market and the cost of equipment, they aren't sure how much equipment they will purchase during that time. Asking for the range allows them to be flexible and not have to come back for additional abatement during that time. Mr. Lerman: Competition in our industry involves, even in the State of Indiana, counties that provide a hell of a lot more support than the tax abatement we're asking for right now. For us to stay in competition for Worthington, for all the other big ones that are around us in the state, Porter County, other places, this is a pittance by comparison. For the kind of things we add in terms of an industrial base to this community, after the five years have expired we pay the regular rate. I think it's really a net gain for the community. It's got to be a net gain. If everybody wants to eliminate tax abatement, fine. We'll compete against them. But as long as there are other places that have it, you'd be stupid, foolish, crazy, not to at least be in competition with them, as long as you 41 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatements continue ... want an industrial base here. That's the only thing I can say about it. I can go into specifics about the investment. We've done this many, many times. Almost every time we've been here we've done more in terms of the total investment than we've asked for. We've hired more than the number of people we've projected. That's because we're still investing in this community. To say that this subsidy, which it is, for the short period of time is not appropriate, I can understand the philosophy, but it's not true in the competitive world. If you want to compete with other areas, and Steel Warehouse is in other areas, not necessarily because we want to be, but that's where our markets are. So, I can testify first hand what's being done in Des Moines, Iowa, what's being done in Chattanooga, Tennessee and other places where we're located. I hope I'm not being too passionate about this. If I am, I apologize for that. I hope people will understand and approve this abatement. Mr. Peczkowski: I notice there are twenty previous abatements. Seven are still in effect. The program is being worked very well by this organization. Again, competitiveness is true all over, and you're saying that other places give better... Mr. Lerman: More substantial. Mr. Peczkowski: Then, I think that's the issue. You're right. Why aren't we doing better? Why don't we give you a bigger 42 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatements continue ... abatement? Mr. Lerman: That's for the Council to decide. If that's something you're undertaking, certainly you ought to be studying what is being done in Porter County. Certainly you ought to be asking what's being done in the other places. They offer inducements for companies to come and invest. They are coming to us. A lot of it has to do with the historic structure in South Bend, historic industry in South Bend, there are a lot of things that are involved in those kinds of decisions. Obviously, the economics of the situation, the things that are involved, I can't answer that question. But it is a question for the Council and for the state legislature. Mr. Inks: I would also add, Ken, you mention the twenty abatements that are still in place. Steel Warehouse has been a growing company for a number of years. It has been one of the best companies in the City of South Bend in terms of its growth, adding jobs, adding investment. Yes, they have applied for tax abatement, but they have made good use of it in terms of growing their business and continuing to grow. We would strongly support the tax abatement for Steel Warehouse. Mr. Peczkowski: I think they can be rewarded in other ways. Mr. Downes made a motion to approve COMMISSION FAILED To APPROVE RESOLUTION No. 2360 43 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatements continue ... Resolution No. 2360 approving an application for personal property tax deduction for Steel Warehouse on property at 2722 W. Tucker Drive. Ms. Jones seconded the motion. The motion failed on a vote of two to one with Mr. Peczkowski opposed. (6) Commission approval requested for Resolution No. 2359 approving an application for personal property tax deduction for property located at 1215, 1217 S. Walnut St. in the Sample-Ewing Development Area. (Steel Warehouse) Mr. Downes made a motion to approve Resolution No. 2359 approving an application for personal property tax deduction for Steel Warehouse on property at 1215-1217 S. Walnut. Ms. Jones seconded the motion. The motion failed on a vote of two to one with Mr. Peczkowski opposed. C. South Bend Central Development Area (1) Commission approval requested for Authorization for Entry Upon and the Temporary use of public property located within the South Bend Central Development Area. (Wightman Petrie access to former Enzyme Research bldg.) Mr. Schalliol noted that the Commission previously gave its approval for Wightman Petrie to begin doing work inside the Enzyme Research building. They intended to purchase the building and needed to fast- COMMISSION FAILED TO APPROVE RESOLUTION No. 2359 44 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area () continued... track its readiness for occupancy. This is the paperwork formally authorizing their use. Upon a motion by Mr. Peczkowski, seconded by Mr. Downes and unanimously carried, the Commission approved the Authorization for Entry Upon and the Temporary use of public property located within the South Bend Central Development Area. (Wightman Petrie access to former Enzyme Research bldg.) (2) Commission approval requested for Contract for Purchase and Sale of 412 S. Lafayette Blvd. (former Enzyme Research building) COMMISSION APPROVED THE AUTHORIZATION FOR ENTRY UPON AND THE TEMPORARY USE OF PUBLIC PROPERTY LOCATED WITHIN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (VUIGHTMAN PETRIE ACCESS TO FORMER ENZYME RESEARCH BLDG. Upon a motion by Mr. Peczkowski, seconded CoMMissiorr aPPxovED TxE CoNTRacT Fox by Mr. Downes and unanimously carried, the P~cxasE arrD Sai.E of 412 S. LaFaYETTE Commission approved the Contract for BLVD. (FO~Ex ErrzYME RESEaRCx suiLDiNG Purchase and Sale of 412 S. Lafayette Blvd. (former Enzyme Research building) (3) Commission approval requested for Resolution No. 2362 approving the transfer of real property to the City of South Bend, Indiana Board of Public Works (633 S Michigan) Mr. Peterson noted that the Board of Public Works entered into an agreement with Transpo to partner to provide the resources to do the viaduct program south of South Street Station along Michigan and Main Sts. Apart of that process is we're using their funds to help do that. The city, in turn, agreed to 45 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area continue ... provide Transpo the parking lotto meet their parking needs. A title review has shown that the Commission is the owner. Resolution No. 2362 conveys the property to the Board of Public Works so that it can be transferred to Transpo as agreed. Mr. Peczkowski asked how it is determined whose ownership within the city a property falls. Mr. Peterson responded that the property is the former Driesbach auto dealership. When it came into the hands of the city it just happened to be titled to the Redevelopment Commission. Upon a motion by Mr. Peczkowski, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2362 approving the transfer of real property to the City of South Bend, Indiana Board of Public Works (63 3 S Michigan) (4) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Title work, 633 S. Michigan St.) Mr. Inks noted that staff requested a proposal for title work from Meridian Title for the Commission owned parking lots used by Transpo at 633 S. Michigan St. and the former Toasty's parking lot. Title work is needed for transactions related to the viaduct improvement project funded by Transpo and the developer for the Studebaker Admin building. COMMISSION APPROVED RESOLUTION N0.2362 APPROVING THE TRANSFER OF REAL PROPERTY TO THE CITY OF SOUTH BEND, INDIANA BOARD OF PUBLIC WORKS (633 S MICHIGAN) 46 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area () continued... Upon a motion by Mr. Peczkowski, seconded by Mr. Downes and unanimously carried, the Commission approved the request for proposal for title work on 633 S. Michigan St. and accepted the proposal from Meridian Title for the scope of services and fee proposed. (5) Commission approval requested for Contract for Purchase and Sale with Tycore, Ltd. (Vacant lot adjacent to Commerce Center, 312 E. LaSalle) Mr. Inks noted that this is a small lot the Commission owns near the Commerce Center. The Commission took previous action to authorize staff to put this contract together for the sale to Tycore. Mr. Peterson noted that the contract is the Commission's standard Contract for Purchase. The purchase price is $1.00 Mr. Peczkowski asked if there isn't precedent being set for future land sales to sell at this price. Wouldn't it be better to have gotten something for the property? Mr. Peterson responded that the Commission used bond proceeds to acquire and improve that property. Any money which we receive for the property's sale, we would have to use to defease a bond, which would cost more than $10,000. It's more economical to give the property away. Mr. Peczkowski asked if that will be true of COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR TITLE WORK ON 633 S. MICHIGAN ST. AND ACCEPTED THE PROPOSAL FROM MERIDIAN TITLE FOR THE SCOPE OF SERVICES AND FEE PROPOSED 47 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area continue ... any property we sell valued at under $10,000. Mr. Peterson responded that it's evaluated on a case by case basis. Upon a motion by Mr. Peczkowski, seconded by Mr. Downes and unanimously carried, the Commission approved the Contract for Purchase and Sale with Tycore, Ltd. (Vacant lot adjacent to Commerce Center, 312 E. LaSalle) (6) Commission approval requested for Resolution No. 2365 appointing the City of South Bend, Indiana, Board of Public Works as an agent to construct certain improvements to Michigan Street Retail Area No. 2. (129 S. Michigan St.) Ms. Jennings noted that the construction is required to ready the Michigan Street Shops space for a new tenant by removing carpet, wall covering, patching the walls, and capping a water line. The cost of the work is proposed not to exceed $2400. The work should be completed within ten days. Upon a motion by Mr. Downes, seconded by Mr. Peczkowski and unanimously carried, the Commission approved Resolution No. 2365 appointing the City of South Bend, Indiana, Board of Public Works as an agent to construct certain improvements to Michigan Street Retail Area No. 2. (129 S. Michigan St.) COMMISSION APPROVED THE CONTRACT FOR PURCHASE AND SALE WITH TYCORE, LTD. (VACANT LOT ADJACENT TO COMMERCE CENTER, 312 E. LASALLE) COMMISSION APPROVED RESOLUTION N0.2365 APPOINTING THE CITY OF SOUTH BEND, INDIANA, BOARD OF PUBLIC WORKS AS AN AGENT TO CONSTRUCT CERTAIN IMPROVEMENTS To MICHIGAN STREET RETAIL AREA No. 2. (129 S. MICHIGAN ST.) 48 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) D. Sample-Ewing Development Area (1) Commission approval requested for proposal for professional services in the Sample-Ewing Development Area. (Survey work, disposition to TRANSPO, Studebaker Industrial Park) Mr. Inks noted that the Commission previously partnered with Transpo to allow for the development of a new headquarters and maintenance facility at the new Studebaker Industrial Park (formerly the South Bend Stamping Plant). The new development was planned on 12.8 acres and would contain 160,000 sft of building construction. Transpo recently expressed a need to acquire more acreage for their development than was envisioned in the original contract. Transpo has offered to pay market rate for the additional real estate, which would increase their site from 12.8 acres to almost 20 acres. Commission staff and City Administration both support this proposal from Transpo. A meets and bounds description of the additional acreage is required as part of our due diligence in anticipation of an amended development agreement being brought to the Commission. Staff solicited a proposal for professional services from DLZ Indiana, LLC due to their familiarity with the property. They conducted the previous legal description for the original Transpo site used in the original contract. Staff recommends approval of the July 2, 2007 proposal from DLZ Indiana, LLC in the 49 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) D. Sample-Ewing Development Area () continued... amount of $1,500.00 to create a property description for the proposed additional land area for the Transpodevelopment. Upon a motion by Mr. Peczkowski, seconded by Mr. Downes and unanimously carried, the Commission approved the request for proposal for survey services and accepted the proposal from DLZ for the scope of services and fee proposed. E. Airport Economic Development Area (1) Commission approval requested for Resolution No. 2361 related to acquisition of property in the Airport Economic Development Area. (Authorizing purchase offer/price for1629 and 1633 Knoblock) Mr. VVitwer noted that Resolution No. 2361 authorizes the sending of a purchase offer for two of the properties added to the acquisition list earlier in the meeting and sets the offering price. The price to be offered for 1629 Knoblock is $54,000 and for 1633 Knoblock, $60,500. Those prices were arrived at by averaging the two appraisals we received for each property. Upon a motion by Mr. Downes, seconded by Mr. Peczkowski and unanimously carried, the Commission approved Resolution No. 2361 related to acquisition of property in the Airport Economic Development Area. (Authorizing purchase offer/price for1629 and 1633 Knoblock) COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR SURVEY SERVICES AND ACCEPTED THE PROPOSAL FROM DLZ FOR THE SCOPE OF SERVICES AND FEE PROPOSED COMMISSION APPROVED RESOLUTION N0.2361 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. AUTHORIZING PURCHASE OFFER/PRICE FOR1629 AND 1633 KNOBIJoCK) 50 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (2) Staff report on acquisition of property in the Airport Economic Development Area. (1629 and 1633 Knoblock) Mr. Witwer noted that the owner of 1629 Knoblock has agreed to our offering price of $54,000. The owners of 1633 Knoblock have made a counter offer of $65,500. They submitted their own appraisal in that amount. Staff recommends accepting the counter offer and pay closing costs. Mr. Peczkowski asked how much that would amount to. Mr. Peterson responded approximately $2,000. Upon a motion by Mr. Downes, seconded by Mr. Peczkowski and unanimously carried, the Commission accepted the counter offer for 1633 Knoblock in the amount of $65,500 plus closing costs not to exceed $2,000. Mr. Peczkowski asked where we are in negotiations for the third property. Mr. Witwer responded that the owner is an elderly lady and she is considering the offer. (3) Commission approval requested for proposal for professional services in the Airport Economic Development Area. (Survey work, Miami corridor expansion) Mr. Witwer noted that item 6.E.(3) should be tabled since the public hearing on Resolution No. 2354 was continued. COMMISSION ACCEPTED THE COUNTER OFFER FOR 1633 KNOBLOCK IN THE AMOUNT OF $6S,SOO PLUS CLOSING COSTS NOT TO EXCEED $2,000 51 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area continue ... Upon a motion by Mr. Peczkowski, seconded by Mr. Downes and unanimously carried, the Commission tabled item. 6.E.(3). (4) Commission approval requested for proposal for professional services in the Airport Economic Development Area. (ALTA survey replatting Lot 1B) Mr. Witwer noted that in order to prepare lot 1B in the corporate park for disposition we need an ALTA survey. We also need to replat a portion of the lot divided from the main body of the lot by an access easement to the Blue Herron. This newly created lot will be platted to Lot 1 C. The proposal from Abonmarche is for a fee of $4,900 for both services. Upon a motion by Mr. Downes, seconded by Mr. Peczkowski and unanimously carried, the Commission approved the request for proposal for survey services and accepted the proposal from Abonmarche for the scope of work and fee proposed. (5) Commission approval requested for Resolution No. 2367 approving a form of Purchase Agreement for the acquisition of property in the Airport Economic Development Area. Mr. Witwer noted that item 6.E.(5) is the same as item 6.E.(6). ITEM 6.E.(3) WAS TABLED COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR SURVEY SERVICES AND ACCEPTED THE PROPOSAL FROM ABONMARCHE FOR THE SCOPE OF WORK AND FEE PROPOSED 52 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area continue ... Upon a motion by Mr. Peczkowski, seconded by Mr. Downes and unanimously carried the Commission combined items 6.E.(5) and 6.E.(6) (6) Commission approval requested for Purchase Agreement by and between the South Bend Redevelopment Commission and Frederick E. Goerke and Mary E. Goerke. Mr. VUitwer noted that this is the Purchase Agreement resulting from the acceptance of our purchase offer for 1629 Knoblock. Upon a motion by Mr. Peczkowski, seconded by Mr. Downes and unanimously carried, the Commission approved the Purchase Agreement by and between the South Bend Redevelopment Commission and Frederick E. Goerke and Mary E. Goerke. F. South Bend Medical Services District There was no business in the South Bend Medical Services District. G. West Washington-Chapin Development Area There was no business in the West Washington- ChapinDevelopment Area. H. South Side Development Area (1} Commission approval requested for proposal for professional services in the COMMISSION COMBINED ITEMS 6.E.(5) AND 6.E.(6) COMMISSION APPROVED THE PURCHASE AGREEMENT BY AND BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND FREDERICK E. GOERKE AND MARY E. GOERKE 53 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) H. Airport Economic Development Area (} continued... South Side Development Area. (Platting and survey W. Ireland Rd. right-of-way) Mr. Schalliol noted that Danch Harner & Associates submitted a proposal for survey work for a right of way dedication plat for a portion of Ireland Road from Main Street to the west line of the Erskine Commons subdivision. The work is needed to finalize the right-of-way that was donated and acquired during the West Ireland Road project that was completed in 2006 and to formally place the right-of-way limits for Ireland Road. Staff requests approval for an amount not to exceed $5,700. Upon a motion by Mr. Downes, seconded by Mr. Peczkowski and unanimously carried, the Commission approved the request for proposal and accepted the proposal from Danch Harner & Associates for a fee not to exceed $5,700. (2) Commission approval requested for proposal for planning services in the South Side Development Area. (Vacation of portion of Lafayette Blvd. north of Ireland Rd. ) Mr. Schalliol noted that Danch Harner & Associates has submitted a proposal for survey services to vacate a portion of Lafayette Blvd north of Ireland Rd. As part of the construction of the West Ireland Road project, Lafayette Blvd. was moved west of its alignment and a portion of the former COMMISSION APPROVED THE REQUEST FOR PROPOSAL AND ACCEPTED THE PROPOSAL FROM RANCH HARMER & ASSOCIATES FOR A FEE NOT TO EXCEED $S,7OO. 54 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) H. Airport Economic Development Area continue ... right-of-way becomes surplus property and needs to be vacated. Staff requests approval of this proposal for anot-to-exceed amount of $2,500. Upon a motion by Mr. Downes, seconded by Mr. Peczkowski and unanimously carried, the Commission approved the request for proposal and accepted the proposal from Ranch Harner & Associates for a fee not to exceed $2,500. (3) Staff report on acquisition of property in the South Side Development Area. (4223 S. Main St.) Mr. Schalliol noted that staff has been working with legal counsel representing Caroline Partners LLC to prepare a counter offer proposal for 4223 S. Main Street. The outline of the counter offer proposes that there would be acceptance of the price ($65,500) but instead of cash, using the $65,500 to provide professional services for environmental review and demolition of certain properties listed in the counter offer, transfer of excess property not needed (4201, 4209, 4223, 4309 S. Main St.) for future improvement, transfer of excess property related to West Ireland Road project (201 W. Ireland Rd), coordination of the Lafayette St. vacation and transfer of any access property of the street vacation related to the West Ireland Road project. Mr. Schalliol said it was a good counter offer in concept, but needs some legal work. Staff requests COMMISSION APPROVED THE REQUEST FOR PROPOSAL AND ACCEPTED THE PROPOSAL FROM RANCH HARMER & ASSOCIATES FOR A FEE NOT TO EXCEED $2,5~~ 55 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) H. Airport Economic Development Area continue ... approval of the concept and will bring back the final Purchase Agreement at a future meeting. Upon a motion by Mr. Peczkowski, seconded by Mr. Downes and unanimously carried, the Commission approved the concept of a counter offer from Caroline Partners LLC and authorized staff to complete negotiations and draw up the Purchase Agreement. I. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. J. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. K. Other (1) Commission approval requested for Resolution No. 2364 making certain findings regarding proposed Mishawaka Avenue Urban Renewal Area. Mr. Dressel, Community Development, noted that the Mishawaka Avenue corridor is along serving corridor that has direct links to the River Park neighborhood. However, the economic downtown affecting other parts of the city has had a blighting affect on that corridor. It still serves to support the neighborhood, but several limitations have COMMISSION APPROVED THE CONCEPT OF A COUNTER OFFER FROM CAROLINE PARTNERS LLC AND AUTHORIZED STAFF TO COMPLETE NEGOTIATIONS AND DRAW UP THE PURCHASE AGREEMENT 56 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) K. Other () continued... been increasingly apparent in recent decades. In the case of the South Bend region, the rapid and considerable development along Grape Road and Main Street changed the gravitational center of commercial and retail for the region. For decades the City of South Bend struggled to compete and find a new identity in this new commercial landscape. In trying to serve the ever changing demographic within the River Park Neighborhood, Mishawaka Avenue has been a part of the City of South Bend's multi- decade struggle. While attempting to both supplement and compete with franchise retail within the city and region, the "Avenue" has fallen short due to limitations in several areas. The nature of the layout of the corridor allows for little or no additional space for growth or development. The corridor is essentially landlocked to the north and south by residential properties. In addition, large recreational (Potawatomi Park/Zoo) and institutional (Adams High School, Indiana University South Bend) dominate the available space along the corridor. While the limited number of vacant, available lots on the corridor can certainly be viewed as an asset, it can be argued that this limitation also lends to a lack of development potential. The pattern of development within the region has led to a near cessation of new growth in the corridor. In the last two decades alone, 57 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) K. Other () continued... the development of for profit development has been extremely limited, with only certain franchises (Walgreen's Speedway, and 7-11) accounting for significant amounts. Per the Commercial Building Permit data, the valuation of improvements associated with building permits between 2000 and 2006 has only exceeded $100,000 on one occasion, while amongst all the commercial corridors (Miami St., Lincolnway West, Western, South Gateway, and Portage) only Portage has totaled less. (This assessment discounts the $37M investment made to Adams High School during this same period.) While the corridor has continually served as a sufficient location for start-up businesses, in the increasingly competitive regional market, the real and perceived obsolescence of the building structures, sites, and amenities has frequently led the corridor losing out to longer term businesses. Although the corridor has benefited from the preservation of several connected commercial oriented buildings and structures, these structures do have limitations that have prevented the corridor from competing in the local and regional marketplace. With a large number of the commercial structures built during the earlier part of the 20th Century, the need to accommodate automobiles was not yet a significant priority. This is specifically characterized by limited, rear oriented parking. The age of these buildings also reflects their lack of modern amenities (Internet capability, security, HVAC). This 58 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) K. Other () continued... is particularly important when considering that many of these buildings have historically included business tenants. In addition, many other buildings on the corridor were originally built as single family structures. Although fewer in number, the corridor does suffer from the presence of substandard buildings. These buildings have been in continued neglect and their outward appearance has led to further the negative opinions of the corridor, further distancing the opportunities associated with existing within a competitive market. Despite all of the undesirable facets of the corridor detailed above, there are a number of positive factors and assets in place that could facilitate an economic turnaround. The corridor is adjacent to several citywide institutions, including: Indiana University South Bend, Potawatomi Park and Zoo, Adams High School, South Bend Farmer's Market, and Nuner Primary Center /Athletic Field. There are also several long time businesses that have stabilized the corridor's business environment throughout this transitional period. Finally, the City of South Bend has assisted the corridor by providing the funding necessary to add infrastructure improvement and enhance beautification efforts for nearly a decade. It is the opinion of staff that establishing the corridor as an urban renewal area will benefit the corridor. More specifically, such action would allow the Commission to actively plan 59 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) K. Other () continued... for the renewal of the area, to quickly take advantage of development opportunities and to establish a voluntary rehabilitation program which would serve as an appropriate compliment to the corridor's existing assets by addressing the weaknesses detailed above. With limited growth potential, an emphasis needs to be placed upon enhancing the current buildings through facade and exterior improvements. The positive impact generated by such a program could substantially improve the corridor's standing within the local economic market. Mr. Peterson explained what an urban renewal area (URA) is. The Commission, by designating an urban renewal area, can have jurisdiction over various transactions in that area. An urban renewal area is more focused on preventing blight than a redevelopment area which already has declared blight. The urban renewal area also has the ability to bring neighborhood efforts to bear with various programs. Designation of this URA allows the Commission to respond adequately, quickly and appropriately to needs we hear about in our neighborhoods. There will be no tax increment financing area associated with this URA. In Resolution No. 2364 the Commission is making some initial findings necessary to later declare the area an Urban Renewal Area. Mr. Peczkowski: This region of River Park 60 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 6. NEW BUSINESS (CONT.) K. Other () continued... has always been a good business incubator. We need a place like that. I'm afraid that by letting us interfere with what has been a process that has worked well, we're going to wreck that. Eventually, we're going to see this area added to the Airport Economic Development Area. We' 11 have Hurwich and everyone else in Miami and eventually these guys will be part of it as well. If you give us an inch we'll take a mile. Mr. Peterson: First, a major step like what you are talking about is a whole process in and of itself. We've seen that develop over the past few months. That's a significant process. There's no plan or thought to do that. We're not even doing a tax increment district here. Second, this resolution starts the dialog for the Commission to act. ~Ue're not asking today to take any action to establish a program. It just starts the dialog. It makes the initial findings regarding the neighborhood. It allows us to go to the next meeting with additional support and the cooperation and public support to begin this process more thoroughly. Upon a motion by Mr. Downes, seconded by Mr. Peczkowski and unanimously carried, the Commission approved Resolution No. 2364 making certain findings regarding proposed Mishawaka Avenue Urban Renewal Area. Commission approved Resolution No. 2364 making certain findings regarding proposed Mishawaka Avenue Urban Renewal Area 61 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 7. PROGRESS REPORTS Mayor Luecke reported on the Gameday project for the PROGRESS REPORTS site on the NW corner of Jefferson and St. Joseph. They have recently provided some additional information about new partners for the project, including a strong equity investor who would be part of the development at two sites, including the one here in South Bend. They have been asked to provide more detailed information about those equity partners by the Commission's next meeting. They are aware that it is time to move this project forward and that they need to make progress. Mayor Luecke also reported that there is another developer interested in an exciting development in the downtown. R.E.I. would like to construct a new hotel. Their preferred site is the Jefferson and St. Joseph site, though we have talked to them about other sites as well. We are currently working parallel paths with Gameday and R.E.I. on this site. We are also talking to both developers about alternate sites. There's a possibility the two developers could work together on the one site, or the possibility that we could have two new projects in the downtown. Mike Wells and Jeremy Stevenson were present representing R.E.I. to explain their proposal. Mike Wells said that R.E.I. is an Indianapolis based development firm, specializing in hotel development. They are partnering with White Lodging which is doing a number of hotels in South Bend. Together they've done over 125 hotels. They have 40 hotels under development in Indiana and across the country. They've been looking at the South Bend market for the last couple of years, especially the downtown. They are very excited about the opportunity to potentially work with South Bend's convention business to provide more rooms. He showed an example of R.E.I.'s projects, a Springhill Suites project in Austin, Texas. They like urban projects and are currently doing a $300,000,000 project in downtown Indianapolis. He then showed a 62 South Bend Redevelopment Commission Regular Meeting -July 20, 2007 7. PROGRESS REPORTS (CONT.) schematic of what they might do on the St. Joseph/Jeffersonshe. The schematic was ten stories and would have about 170 to 200 rooms, with 200-225 parking spaces within the project. They have been looking at the South Bend market for awhile; White Lodging has built several hotels in the South Bend market; they think the downtown is ripe for another hotel. They can move very quickly to sign an agreement within a couple of weeks of having the site and begin construction next spring. Mr. Peczkowski asked whether the hotel would be a Marriott product. Mr. Wells responded that likely it would not do a full service Marriott or Springhill Suites because that's what the Kite development will have. They also do Hyatt hotels. They like to work with existing hotels so that everybody gets better business. The last thing they want to do is come into South Bend and lower the rates and occupancy levels. Mr. Peczkowski confirmed that they are not looking at the university clients. Mr. Wells indicated they primarily serve business travelers. The franchises they work with have strong followings. Experienced business travelers hunt for their favorite places to stay. Mr. Downes said it sounds very exciting. Mayor Luecke said South Bend is very excited to have this interest. R.E.I. is a substantial firm with great experience. There has long been discussion about whether downtown South Bend could have another hotel. We're delighted to have this contact with a firm eager to move forward quickly. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Friday, August 3, 2007 at 10:00 a.m. 63 auth Bend Rede~e~o~Mellt oMr~li~~ion regular eet~ng ~Jt~ly ~D, ~~07 ~, .~DJ~U~N~ENT There being ~~ further busi~aess to cone before the AoJQV~v~€~~T ~edeve~opn~ent commission, the meeting was add ourned at ~ ~ :47 a.M. Do ald E. Inks, Director Marcia I. Jones, Pres~ ei~t ~E~JTI~E EI[~N J~l~ ~~, ~0~7 The South Bend Redevelopn~nt Qmmiss~on met in E~eeutive essial~ an Friday, July ~~, ~0~7 at 9:~ a.M. The Meeting was hel. i~~ oon~ 1.~~0 a~~nty-pity Building, X27 hest Jefferson., Sat~th Bend, Indiana, far the purpases specified in I. 5-14-~ ,-. l~b~~~}~D}. omnll~sloner's Presel~t: ~Vlarcia ,To~le~, Presldellt; Greg Do~laes, See~~etary, den Peczl~owsi. ~ther~ Present: Jeff Ciblley, ~~eeutive Directar, ozx~n~un~ty & Beonomlc De~elopn~ent, ~]on ~nl~, f3irectar, ~conan~ic De~ela~n~ent, Attorney h~.rles Leone, Bill cha~liol, icl~ ~it~ver, ~lld R0~3ol~t Mathla. The olnmission certifle~ that 110 topic ~S diet~ssed other than the suhj ect 1~lattel~ specified in the Public Notice. The ~xecutl~e Sess~or~ was ~d~ot~~;ned at ~0:0~ a.~~~. 'ITY ~F SOUTH BEND, DEART~VIENT OF REDE"~EI~O~IVINT A,. ~~ Ma~~~a I. Jo~a, P~~~.d~nt ~'rra~fer! N~rnre cr~~rf ~lt~e ~ut~ Be~~ .ede~e~open~ o~n~niss~nn ~4