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HomeMy WebLinkAbout08-17-07 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 17, 2007 10:00 a.m.. 227 West Jefferson Boulevard Presiding: Marcia 1. Jones, President South Bend, Indiana L ROLL CALL Members Present: Leal 'ounsel - l s. Marcia Jones, President Mr. Karl King, Vice President .fir. Greg Downes, Secretary Mr. Hardie Blake,, Jr. Mr. Ken Pee l o vsl i Mr. Charles S. Leone, Es q. .Mr. Shawn Peterson. Redevelopment Staff: Mr. Don Inks, Director Mr. Jeffrey V. Gibney, Executive Director Mrs. Cheryl Phipps, Recording Secretary Mr. Andrew Laurent,, Economic Developmen.t. Specialist Ms. Jennifer : aurent, Economic Development Specialist Mr. Nicholas Witwer, Economic Development Specialist Others Present- Mayor Stephen Luecke Mr. Toni Price, Mayor's Office Ms. Debrah JeDnincys, Property :Manager 1 s. Pamela 1 eyer, Director, Coil ty . v lops gent Mr. Jeff Vitton, Community Dcvelopment Mr. George Adler, Community Development nt Mr. Marco Mariani, Downtown South Bend Mr. Jitin Kain., Downtown. South Bead Ms..lamle Loo, South end Tribune Ms. Rita Kopala Mr. George Cressy, Grubb & Ellis Cressy & Everett Mr. Rack Doolittle, Grubb & Ellis Cressy & Everett Ms. Sheral Litell, Grubb & Ellis Cressy & Everett Mr. Brad Tootha er, CB Richard Ellis Mr. David Vo llrath 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, August 3, 2007. Upon a motion by Mr. Downes, nes, seconded by Mr. COMMISSION APPROVED E THE MINU'I`ES of THE Blake and unanimously carried, the Commission REGU[.,A R MEET] NG or FRIDAY, AUo -r- , 2007 South Bend Redevelopment Cor.>< mIss.io.1.. Regular Meeting -.-August 17, 2007 2. APPROVAL OF MINUTES (CONY.) A. continued... approved. the Minutes of the RecTular Meeting of Fni la , August , 2007. 3. APPROVAL of CLAIMS Red vcl.op.m.ent Commlssion Claims submitted August 17, 2007 for approval. 324 AIRPORT AEDA Meridian Title Coi . 53,637.29 Ken Herceg & Associates, 1nc. 23,8 6.00 A.b nniarchc Consultants of Indiana L.L.C. 31445.50 L Man age n � ent 14, 5 0 0. o 414 SAMPLE EWING E RA:L Indiana Mieh' an Power 6.88 Hu-11 & Associates, Inc. 3,792.50 420 FUND T.IF .D'ISTRICT -S ODA GENERAL Ampco System..Parlung 870.27 ADG 3,647.47 426 F ND MEDICAL DISTRICT TIF Trans Tech.Electric 4409.50 Trans Tech Electric 29,405.00 428 FUND AIRPORT 2003 BOND J & L Management 145500.00 192,220.41 Upon a motion by Mr. Downes, seconded by Mr. King and unanimously car icd, the Commission approved the Claims submitted August 17, 2007, and ordered decks to be released. COMMUNICATIONS IONS There were no Communications. 2 01 1MIS S I ON APPROVED THE CLAII IS SUBMITTED AUGUST 17,2007, AND RDFIR ID 'I "14E CHFCKSTO BE RCI_,EASED T ERI✓ WE RE NO COMM U I CAT] 0NS South Bend I . devel.opllleDt Co MMISSIOD Regular Meeting -August 17, Zoo? 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS TI -IE1 E WAS No OLD BUSINESS A. South Bend Central Development Area (1) C approval requested for Strategy for Downtown Development. Mayor Luecke notcd that when. Jeff Gibney was appointed Interim Director of Community & Economic Development opment it was w1tb. the Intent that we bn.ng new energy and new foals to our redevelopment efforts all across town. We have certainly seen that. One of the areas we wanted to be very spccific i� piing for was the downtown. We wanted to do more than jut plan for str eetscap amenities; we wanted to develop a strategy for getting desired new uses into the downtown, particularly. Jeff has led a strong effort in consultation with interested parties in the downtown and east b ank areas. 'We want to bring before you a. report on priorities for L[Se of TIC` funds to leverage dcveloprient. :fir. G.I ey noted that the Commissioners have reviewed a draft of the downtown strategy. He also noted that the budget process for 2008 includes, for the first tare, the TIF investments in the redevelopment target areas. The first TIC` budget we have submitted is for downtown South Bend. As staff put together this plan over the last six months some guiding principles were used. Staff defined its vision for downtown, what its themes are, and then some guidelines for setting priorities. 3 South Bend Redevelopment Commission Regular Meeting —August 17, 2007 6. NEW BUSINESS (CANT) A. South Bend Central Development Area (1) continued... Today, staff' requests approval of Its work plan. Not approval for a budget, but agrecment' about where staff should use its resources. This is a work plan for 2007 through 2009. Mr. Gibney reminded Commissioners that ill the budget for downtown TIF there are ft ni s that are already in process, for example, there is a developer .interested in the old St debal er Administration Building. The city's involvement and a potential TI ` investment is to constrLIet a parking lot adjacent to that building once the cuiTe .t owner ma.l es a substantial investment in the facade. We have already commItted to spend TIF on the h.].storlc fa ade at 101 N. Mi chi ga.n, the All American Plaza. The city has committed TI ' funds to the l ey ank project by improving the plaza at the southeast corner of Jefferson and Michigan. The city has reserved funds for a parking garage at the comer of St. Joseph and Jefferson. We hope to have a proposal at the next meeting for a hotel at that site. We are proceeding with the first phase of a comprehensive and strategic plan for the East Bank phase 1. These are projects that are already committed to that are included in this strategy, TIC' budget and presentation. n on South Bend l edevelopm.e .t Commissioll Regular Meeting 17, 2007 6. NEW BUSINESS (CONY.) A. South Bend Central Development area (1) continued... New iterns on the lisp; follow. Su stagy ti.al. improvements to Michigan St. from Western to LaSalle St. It 1s the main pedestrian street m downtown South Bend and is in need of repair and a Ma or upgrade. Given. the time of year, we'll do some patch and rep tr work -f safety purposes yet this year; and then we'll do design work and get input from the merchants before making major .i.mprover eats in 2008. In addition to that we'd like to see a little more green. space in downtown if at all possible. we've ide.ti.fied a potential site for a small town plaza in front of the Football lull of Fanie and, if we can get some support from TCU, maybe create some sod of ornamental roofed enclosure that stall allows ark ing throughout the week, but also has enclosed space for events that we're holding in downtown South .Bead. The city spends tip to $25,000 per season to rent tents for those events. We thinly that could be a wise investment. We want to do something with the block that includes the Fat Daddies outlet.. There are four buildings in the block. It "s very substandard. It makes a poor entrance to the downtown. when coning from the south. We want to study the block, looping at either preservation or demolition. If we would demolish it, we would put together a strategic plan that shows how a developer could use the site, 5 South lend Redevelopment Coninussion Regular Mecting -- -August 1, 2007 6. NEW BUSINESS (CONY.) A. South Bend Central Development Area (1) what kind of square footage it would contain, what kind ofparking in the back... The Gates Chevrolet campus. It's been. 1.11 the paper that rates is beginning to move some of their sales operations to the Ireland Road area. Phase I is that the city look at the old Sears building and the act a.eent parking lot. Controlling this site could be an opportunity to eon.si.der; a new entrance orientation to the city - owned C'ovelesl i Stadium. The cuiTent: orientation is difficult to find for out of town visitors. It would be our intent to bring in the original architects who des] gned the stadium to design the new entrance and layout. They are doing a lot of work all over the country w1th sports facilities and integration and stimulation for econom.1c development. • We would love to calm traffic in downtown South Bend, particularly on St. Joseph Street and Main Street. Although there is not money right now to tum those streets into two-way streets, we have been discussing parking on those streets and construction of landscaped meridian strips on St. Joseph Street in front of Century Center . • We are tallying about completing are .stogie tour walkway from downtown to the new museum campus with the potential relocation of one or two sIgnicant ItorIc buildings that are isolated in terms of location. We would purchase them, move them, and s c I l them 6 South Bend Redevelopment Commission : eaul r Meeting — August 17, 2007 G. NEW BUSINESS (CONY.) A. South Bend Central Development Area (1) continued... so that the corridor from. one end of the downtown. OUt to the museum would have the finest collection of "pre -tum of the century "' architecture that we have in the community. Lastly, we propose to participate in the Rushton Apartment Building on the northwest corner of William and Washington fit. It has been abandoned for about four years. ffistoric 'Landrnarl s Foundation has receivership on the property. hey've repaired the roof and cleaned out the Inside, but there i.s a serious problem with lack taxes, equal to the cost of demolition. We think it 1s prudent that we ask for back taxes to be forgiven, or pay the lack taxes, so that development can proceed. These are exannples for a plan for investment of �TIF dollars in downtown South Bend. The staff thinks these are good investments in. development that the private sector will need the public sector involved in. Mr. Gibney asked for Commission support of the plan and the concept. He noted that the budget that is attached is estimated and for discussion purposes. However, it is a "smart budget" resulting from research and based in. reality. Mr. Icing clarified the request to the Commission, that staff is looking in for approval of the concept, but each project, each item of work and expenditure will come VA South Bend Redevelopment Commission Regular Meeting -- August. 17, 2007 6. NEW SUS1NESS {CONY.} A. South Bend Central Development Area (1) back for specific approval of that action. Mr. Gibney responded that Mr. Amer was correct. Mr. Gibney noted that staff intends to do the same thing for the Airport area and the TIC` funds that are aval ab e there. Mr. .Pec kowsl i asked if the thirteen. projects are listed In order of priority. Mr. Gibney responded that they are not ranked by priority. .Mr. fling expressed Ins approval. Previous plans were high level conceptual, some of them bordering on. wish-ful thinking. Though the projects might have been. nice to lave, they didn't connect well with available resources. What he 11 es about this is that a's a plan with a series of action steps that connect to availability of time, property an other resources .necessary to make this actually happen. It's a practical work plan. Mr. Downes echoed Mr. King's comments, saying it is truly comprebensive and long term. He liked that it sets priorities, yet it has flexibility bu llt into it and it is fiscally responsiblc. Mr. King made a motion to approve the conceptual strateg'y for downtown South Bend presented by staff. Mr. Downes seconded the motion. The vote was four in favor. Mr. kowsl 1 abstained. 0 COMMISSION APPROVED THE CONCEPTUAL STRATEGY FOR DOWNTOWN SOUTH BENI A PRESENTED TED B STAFF South rend Redevelopme nt Commission Regular Meeting — August 17, 2007 6. NEW BUSINESS (CONY.) A. South Bend Central Development elopment Area (2) Filing of Resolution No. 2374 amending the South Bend Central Development Area Development Plan and setting a public hearing for 0 :00 a.m., September 7, 200 on Resolution No. 2374. (Adding 503 and 513 S. Michigan St. to the acquisition list, Fat Daddies outlet and Beebe Cabinet Co.) Mr. Inks noted that after laving the downtown strategy approved, staff would like to begin the first action step in that strategy. That would be to add properties ill the Fat .Daddies block to the acquisition list. That action .requires an amendment to the Development Plan and a public hearing on the matter. The ublie hearing will be 10 :00 a.ni., September 7, 2007. 'Upon a motion by Mr. King, seconded by Mr. Downes and unanimously ears -led, the, Con -1111.ission accepted for filing Resol.ufton No. 2374 amending the South Bend Central Development Area Development Plan and Setting a public hearing for 10:00 a.m., September 7, 2007 on Resolution No. 2374. (3) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Appraisals, Fat Daddies outlet and Beebe Cabinet Co., 503 and 513 S. Michigan St. Mr. . Inks noted that at the time we add properties to the acquisition list, we establish a value for the property. These appraisals would provide that value. 9 C NIMI [ON AC:CEP -1 -FII F'OR F[1 -1NG RESOL.UTION No. 2374 MI TI :IN1)ING l'VIF` OUTPI BEND CTNTI .A.I._ D F;VE LO PMEN`r AREA EV ELOPMENT PI..1AN AND S ETT ING A PUBL1C: HEARING FOR. 10:00 A.M., SITrI'EMBER 7, 2007 N RESOLUTION NCB. 2374. South Bend Redevelopment Commission Regular Meeting — August 17, 2007 6. NEW BUSINESS CONT.) .A. South Bend Central Development Aare (3) continued... Upon a motion by M.'r..1 .J.n ., seconded by 'Mr. Downes and unanimously earned, the Com.m.zssion approved the request for proposals for appraisal services and accepted the proposals from. R.E. McCloskey and R.E. Pitts 'for the scope of services and fee proposed. (4) Commission approval requested for Resolution No. 2342 related to acquisition of property in the South Bend Central Development Area, (Setting the acquisition price for KeyBank Plaza) Ms. Laurent noted that on. April 65 20075 the Comn'lission approved a Memorandum andum of 'Understanding outlining negotiated points of a development partnership with the Hinman Company, owner of the KeyBank Tower in the South Bend. Central Development Area. The MOU outlined a means by which, in support of the project, the Redevelopment Commission would purchase the plaza area and iMprove it to make a -usable ai -id attractive green space in the downtown. Resolution No. 2342 sets the offering price for purchase of the KeyBank Plaza at $1 56,000, the average of two MAI appraisals. Staff requests approval of the resolution. Mr. King jade a motion to approve Resolution No. 2342 related to acquisition of property in the South Bend Central Development Area. Mr. Downes seconded 10 COMMISSION APPROVED rI FIE- REQUEST FOR PROPOSALS FOR APPRAISAL SERVICES AND ACCEPTED THE PR P SA.I. -S FROrvi R.E. MCC LOCK AND R.E. r]"I's FOR ,n-.II_ SCSmpi" 0i. SERVICES AND I~EE. PROPOSED COMMISSION APPROVED RESOLUTION No. 2342 RELATED -rO ACQUISITION OF PROP[ T IN THE SOUTH EN1) FNT AL. DFv I_,OPM1 NT AREA South .Heed Redevelopment Commission Regular Meeting — August 17, 2007 6. NEW BUSINESS (CONY.) A. South Heed Central Development Area (4) continued... the motion.. The motion passed on a vote of :four to one with 'Mr. Pec l owsl i opposed. (5) Commission approval requested for Resolution Igo. 2369 approving and accepting a counter{ offer from and a Contract of ' urc ease and Sale with Key S.B., L. ,C4 and other related matters. Ms. Laurent noted. that Resolution No. 2369 outlines a negot.i.ated counter -offer fro the . innian Company for tl�e :fey. a��.l 1 l a and approves a Contract for Purchase and Sale of Property fi afi. ing to i.s of the prof ect. The approved MOU outlined a total investni.ent on the Commission's part of 00,000 in the project.. A purchase price of $ 00,000 was agreed to, in consideration of the vatue of the property as well as amortized Maintenance and taxes that would be assumed by the Developer in a lease-back scenario. In addition, the Commission committed to put $200,000 toward improvements to the .Plaza. The counter offer proposes a purchase price for the Plaza of $400,000 and releases the on nission of its additional $200,000 capital expenditure on Plaza improvements,, obligating the Developer to construct the agreed upon improver ents and finalizing the sale only upon completion of the work. Staff and legal counsel feel that this proposal is mutually beneficial in efficiently advancing South Bend Redevelopment Commission. Regular Meeting — August 17, 2007 5. NEW BUSINESS (CONY.) A. South Bead Central Development elopment Area (5) continued... the project while maintaining the spl.rit of the agreed. upon terms, Staff recommends approval . Mr. King made a motion to approve Resolution No. 2369 approving and accepting a counter offer from and a Contract of Purchase and Sale with Key S.L ., L.L.C. Mr. Downes seconded the motion. The motion passed on a vote of four to one with .fir. Peczkowski opposed.. (6) Commission approval requested for Authori ati u for Entry Upon. and the Temporary use of public property located within the South Bend Central Development Area.. (Boerne Plaza by ITB for Football Fridays) Ms. Jennings noted that DTSB . TSB wishes to Use I oc ne Plaza for several pa.r tees in the fall in connection w1tb Notre Dame home games. They would need the area from 00 a.m. Friday to 12:00 p.m. Saturday on the following weekends: August 31, Septem- ber 21, October 12, October 19, November and November 16, 2007, The actual events will take place from 7:00 p.m. to 10.00 p.m. Friday nights. No sidewalk will be blocked in the daytime. The east sidewalk will be blocked Friday evening during the actual evert. The authorization stipulates that the property will be restored to its previous condition and that DTSB will comply with all laws and 12 COMMISSION APPROVED RESOLUTION No. 2.369 APPROVIN G AND ACCEPTING ING C:`OUNTF- C)FFE" FROM AND A CONTRACT OF PUS CHA l:. AND A1...l wrrii KEG' S.L .. L.L.C. Sout h Bead Redevelopment Commission Recrular Meeting ---August 17, 2007 1 . W BUSINESS (CONT.) A., South Bend Central Development Area (6) continued... rules for suc h events, DT B has prov1 ed proof of insurance and indemnification to the Co mission. Staff recommends approval. Mr. Pec ko s i asked what the iteni. in the budget was in 2005 and 2006 for the tent parties when $20,000 was transferred to the Hall of Fame. If we agree to thi. s request arc we agreeing to this transfer of funds` And what is it for and why is it taking place"? Mr. lnks responded that the use of tiros funds is not part of tlu.s re nest or use of the Property for these events. We are not tacitly, nor in any way, approving anything other than the use of our property. Mr. Downes jade a motion to approve the .Authori atlon for Entry Upon and the Temporary Use of Public Property by Downtown South. Bend Inc. for Football .Fridays events on th 'specif ie d dates and times August through November 2007. Mr. King seconded the motion. The motion passed on a vote of four to one with Mr. Peckowsi. opposed. B. Airport Economic Development Area 1 Commission approval requested for .proposal for board-up services in the Airport Economic Development ,Area. (Goerke property, 1629 Knoblock) Mr. Wit ver noted that the Commission purchased 1629 X,,_noblock at its last meeting. 1 COMMISSION APPROVED THE Au- n-IORI ATI N FOR ENTRY UPON AND THE Ti_1mPO RA RY USE OF PUBLIC PR PF,RTY By Do N SOUTi -i BEND INC. FOR ooT ALL F R.1DAYS E.'VENTS CAN T11 SP'EC'IFIED DATES AND TIMif_s AUGUST THROUG1 -1 No E11 BER.2007 South Bend Redevelopment Commission I egular 'Meeting — August l.7, 2007 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (1) continued... The previous owner was allowed to remove some things from the house before closing. One of the things he tool was some new windows s lie had put in, so we needed to do a n emergency board rip of the house immediately after closing. We don't have an invoice for the work yet. Staff recommends approvincy a not -to- exceed amount of $500. 'Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the emergency board - up and authorized payment of not -to- exceed $500 for those services. (2) Staff report on disposition of propert y in tbe Airport Economic Development Area. (Cressy option agreement for Blacktborn Corporate Park Mr. Inks noted. that the Option. Agreement includes all of the lots for sale in the Blackthorn n Office Park. It is a five -year agreement with five -yeas renewal options. Those renewal options are subject to purchase of 5% of the available acreage during each five-year period. So, in five years if 25% of the acreage is acquired Cressy has are automatic atic option renewal of five years should they elect that. There is an option fee of $100,000 which is credited against future purchases. The option price is 75% of the list price. As the Commission has negotiated sales in this area in the past, the typical sales price has been close to 750 of the list price. 1 :.` OM MISSION APF'ROVI -1] 441 E VIERGENC BOARD- r:)- _]' N�: AU 'FI- 101ZIZE PA NIEN`� OF NO 0 FOR THOSE SERVICE'S South Bend Redevelopment Commission Regular Meeting —August 17, 2007 b. NEW BUSINESS (CONY.) B. Airport Economic Development Area (2) continued... Mr. Inks noted that originally the Commission set out to list properties ui the AE DA I lacl thou Corporate office park in p arti ctrl ar to better market and. stimulate new development in that area. When Cressy expressed interest, we realized their potential as an office park developer, but having them as our listing agent would preclude the. . from. a devc1opment role in the corporate offi ce park. To resolve that., an option agreement was the preferred route. That gives them both the ability to market the property and to act as a developer for the property. Mr. Iooll.ttle stated that their earlier presentation on their capability for mar etma ZD Commission property identified their entire marketing strategy, including an interactive Web site with. links to different economic development parts of the city, a video in e- maila ble form, and taking a new look at the master plan with the intent of adjusting it to letter suit today's market. All of those promises and commi.tments are part of this Option Agreement, along with timeframes to perform them. Cressy & Everett is eager to get started. Ms. Jones asked for a short example scenario to clarify the way the option extensions would work. Mr. Doolittle responded that the 100,000 option is a non- refundable deposit with earn - backs. It's predicated on a benchmark of minimum successes. Their commitment is to sell or develop or take 15 South Bend Redevelopment Commission Regular -meeting .-August 17, 2007 6. NEW BUSINESS (CONY.) B. Airport Economic Development Area (2) continued.. down at least % of the available ground. In as much as the entire option Agreement benchmark is based on % taked-own, sellI g % of the ground would earn hack o% of the option deposit. So, if we were to sell o% of the ground in the first five years, eve "d care back 100% of the option deposit. Mr -Pee ko vsk.a. asked about the ethics of Mr. Doolittle contacting the Cor rmsswn.ers individually at home about the option Agreement. He felt uncomfortable since the Commission has been asked to he more transparent about its dealings on the Commission. 1 r.. ec ko ski stated that he has not seen the Option Agreement. In order to establish the trust and transparency that the Comm- n- Ission has been asked to give, this should be tabled until it has had an adequate sense of what the agreement contains. Mr. Inks noted that the Commission has seen a prior version of the document. The final version is very close to that earlier version. We are anxious to have Cressy get started marketing the land, but if the Commission desires to table the Item for further review, it can do so. Mr. Blake asked if Cressy decides to develop the property, do they get the marketing percentage" Ml r. Doolittle responded that there would be no sales fee if they developed it thcseles. 1 South Bend Redevelopment Commission Regular ar Meeting — August 17, 2007 6. NEW BUSINESS {CONY.} B. Airport Eeonomk Development Area (2) continued... Mr. Downes made a motion to approve the Option Agreement with Cressy & 'Everett for developm.ent of B a i thom Corporate Park. Mr. Pee lows i asked about the procedure for getting a. motion on. the floor to table the itent Ms. Jones then. asked the other Commissioners if they were comfortable taking action on this item now or j.f they needed more Wile. Mr. Wake asked if the staff was comfortable with the option process from having used it in. the past. Mr. Inks responded that the Commission has not used the option agreement in the past. It has had listing agreements only. But staff has had opportunity to study the issue and is comfortable with the process that has been set out in this agreement. Mr. Gibney also responded. He, has been working with Cressy & Everett on the concept for this option for more than three months. The reason he thought it was important, progressive and aggressive is that Blackthom began in 1991. It is one of the most attractive plots of land we have in the City of South Bead. However, o% of the land remains unsold. He felt that it was important to forge partnerships with the private sector, allowing them to do what they do best. An option agreement is an aggressive way to advance this project. We 17 South Bend Redevelopment Commission Regular .Meeting — August 17, 2007 fi. NEW BUSINESS (CONY.) B. Airport Economic Development Area (2) continued... real y need for It to be 100 % developed . Ms. Jones also asked legal eminsel :for thell- opinion on. whether he Is comfortable with the option agreement as written. .fir. Gibney responded that the document was prepared by outside legal counsel, Richard Nussbaum 11. Mr. Pee kowski stated that he still objects. It i.s counter - democrat .l.e. The fact that we previously had an agreement that expressed the possibility of an option agreement is not enough. Asking a person to sign off on something which he has not seen., ..He has not seen paperwork on this item. He would like to see the text of the agreement. He felt that this smacks of backroom dealing and of trying to manipulate a Commission by private meetings, which he thl.nl s flies In the face of the transparency that ls the buzzword in polities right now. Mr. King seconded the motion. The motion passed on a vote of four to one with Mr. peelowsli opposed. (3) Filing of Resolution No. 2.75 amending the Airport Economic Development Area Development plan and setting a public hearing for 10:00 a. ,, September 7, 2007 on Resolution loo. 2375. (Adding vacant LaSalle Square properties and former Felder -Labe y properties on Franklin to the acquisition list) 1 COMMISSION APPROVED THE OPTION AGREEMENT I -1'1 -1 E SV & EVERETT FOR DEVE1,0 PM ENT OF B LAC KTH RN CORPO RATF PARK. South Bend Redevelopment ent Commission Regular Meeting - .August 17, 2007 6. NEW BUSINESS (CONT.) B. Airport Economic Development e t .rea (3) continued... Mr. Wit ver noted that there are three properties in. LaSalle Square that we wish to acquire. Two are owned by liver o 'Llf church; the other is owned by the l: Foundation. These properties would help us continue our plaiming efforts for LaSalle Square. The other propertyls Located in the Studebaker Corridor near Franklin and Sample Streets. Mr. King made a motion to accept for filing Resolution No. 2375 and set a public hearma on Resolution No. 2375 for 10: 00 a.m., September 7, 2007. Mr. Downes seconded the motion. The mobon passed on a vote of four to one with Mr. Peczkowski opposed. (4) Comission approval requested for proposals for professional services In the Airport Economic Development Area. (Title work, LaSalle lle Square vacant properties) Mr. vitwer toted that this request of to get title work on the properties Just described that we want to add to the AEDA acquisition last. Mcridian Title submitted a proposal in the amount of $ 800. Staffs recommends accepting the proposal. Mr. Dowries rude a motion to approve the request for professional services in the Airport Economic Development Area and to accept the proposal from Meridian .Itle for the scope of services and fee proposed. Mr. Blake seconded the motion. The motion 1 OMIMISS10 N A ('.'C ITTLD F OR rrr_.I N G . ESOLUTI No. 2375 AND SET A PU13r_ 1(" HE..r .a N G ON RESO LUTJ ON No. 23 75 rof 10 :00 A. ., r�;r>TE -MB` 7, 2007. South Bend Redevelopment Coins- nissioll. Regular Meeting -.- August 17, 2007 G. NEW BUSINESS (CONY.) B. Airport Economic Development Area (4) continued... carried on a vote of four to one with Mr. Pec kowski opposed. (5) Commission approval requested for proposal for professional services in the Airport Economic Development Area. (Appraisals, LaSalle Square vacant properties) Mr. Witwer noted that proposals have been received from. Jerome E. Michaels, R.E. 'Pitts and Ralph Lauver to appraise the same properties noted above. The proposals were for $3,000, $2,600 and $3,250 respectively. Two appraisals are needed. Staff' recommends accepting the proposals from Jerome Michaels and lc 'Pitts for a total. not to exceed $6,000. Mr. King made a motion to approve the request for proposals and to accept the proposals from R.E. Pitts and Jerome E. Michaels for the scope of services proposed and a total amount not to exceed $6,000. The Motion passed on a vote of four to one with Mr. Pcczkowski opposed. (6) Staff report on disposition of property in the Airport Economic Development Area. (Property in U.S. 31 Industrial sal Park and related properties) Mr. it wer noted that staff has been negotiating with REW LLC through Gnibb & Ellis Cressy & Everett over the course of about six months for the sale of property in 0 COMMISSION APPROVED THE h \E L1 ,k., `1l FOR PROPOSAL POSAL FO PROF SSIC NAT - SERVIC ES AND ACCEPTED THIN PROPOSALS FI om R.E. PITTS AND JEROmi_; E. MICHAELS FOP, THE SCOPE OF SERVICES PROPOSED AND A TOTAL AMOUNT NOT To FXCEED $6,000 South Bend Redevelopment Commissi.011 Regular Meeting — August 17, 2007 6. NEW BUSINESS CO T. B. Ah-port Economic Development Area (6) continued... the U.S. Industrial Park. .Mr. Inks noted. that Lot 1 is our last lot in the U.S. Industrial .Part . It is land-locked. The four other parcels are half -acre residential sites on Brick Road that have 11 .i.ted development potential. R W owns other land to the area, some of which we would life for the realignment of Dylan Drive. Sale of this land to RLW would g1ve them two developable parcels and the City can. get the z-lght- of-way it needs for Dylan Drive. it's a win -win. s1tuat.ion for both parties. Grubb & Ellis Cressy & Everett has submitted a Letter of Intent on behalf of .R v, LLC for that property for a purchase price of $150,000. Staff believes the offer is fair and recommends accepting Letter of Intent. Upon a motion by Mr. King, seconded by Mr. Blake e and unanimously carried, the Commission accepted the Letter of Intent from Grubb & Ellis Cressy & Everett on behalf of RW LLC for Lot 1 in the U.S. 1 dustr1a]. Park and four Bn'ck Road properties. C. west Wash in o -Ch pi Development Area There was no business in the West Washington- Chapin e elopment Area.. 1 }MMI SS [ON ACC EVrE 'n -iE LETTEIS OF INTENT FROM GRUBB & FLUB CRESSY & E ERETT ON BF -HALF of R-EW LLC FOR LOT I IN THE U.S. INDUSTRIAL PARK AND FOUR BRICK ROAD 1=204IM11 South Bend Redevelopment Conirmssi.011. Regular Meeting - ....August 17, 2007 G. NEW BUSINESS (CONY.) D. South Side Development Area Commission approval requested for Resolution 'o. 2373 approving and accepting a counter offer for the acquisition of property in the Sout h Side Development Area. (4223 S. Main St., Caroline Partners, LLQ Mr. Witwer noted that Caroline Partners L.L C has submitted an offer for 4223 S. Main St. Resolutlon N'o. 2345, approved on June 8, set the acquisition value as $65,500. The negotiated counter offer meets several planning goals for the South Side Development Area. The offer inn udes: 1 purchase price of $65,500 for 4223 S. Main, but in lieu of cash, payment would be made by the city demolishing buildings owned by Carofille Partners LLB' in the project area; 2 transfer of properties not needed for the Main Lafayette crossover project to Caroline Partners portions of 4201, 4209, 4223, and 4309 S. Main); transfer of excess property related to the West Ireland Road project at 201 W. Ireland d.; (4) coordination of the Lafayette St. vacation and transfer of excess property related to the West Ireland Rd project. Staff requests approval of Resolution No. 2373. Mr. Peczkowski asked what the current status is of parcels 4215, 4219, 4225, and 4236 that have not been acquired. Mr. Witwer responded that staff I's still in Degotiation for those properties. 2 South Bend I ede elopni.ent Commission Regular Meeting — August , 2007 6. NEW BUSINESS (CONY.) D. South Side Development Area (1) continued. Mr. Peezkowsk.l. asked what was paid for 4209, 430 au-id 4323. Mr. Inks responded that that inforn'lation was not brought to the meeting. Staff can provide it later. His point 1s that when the Commission first saw this proposal it. Included. clause one where they wish to trade $65,500 for demolition services. Now all of a sudd-e n there's other property thrown in. How much of these five lots .is Caroline Partners getting? It looks like they are close to having a monopoly on that area from Mctalmation. to Ireland -load. Mr. Witwer responded that he doesn't have a map of the proposed 'Main/Lafayette crossover. A substantial a count of those properties will. be used for right-of-way. The amount of property Caroline Partners will receive from those lots is minimal and of use to no one else but the adjacent property owner. Mr. Pecz o ws i asked what the ultimate use of these little parcels will be. Mr. Inks responded that the exact location of the Mace Lafa ette crossover has not yet been designed. Prellininary drawings show the general path of it. We've been acquiring property on the basis of those preliminary drawings. To get full plans from the engineer typically costs about 70% of the project cost, so wbat ve' c been operating on is something pretty good generally, but is not exact. We've been acquiring property based on what we've seer. This property.) 4223, sits almost it the heart of the 23 South Bead Redevelopment Commission Regular Meeting ­August 17, 2007 . NEW BUSINESS (CONT.) D. South Side Development lopn ent Area (1) continued... Maiii/Lafa.yette crossover as it's currently configured. It will be used for the project almost in its entirety. Because of the sweeping nature of the curve, there will be some remainder parcels. This agreement docsn't call for an. i.nu- nedxate transfer of the properties. The document today anticipates that once those final designs are done and the re mainder parcels are identified, then they would be conveyed. Mr. 'Pee l owsl 1 asked. . if 4201 doesn't fit into the plan, whether we rnight be ceding a full. property to Caroline Partners. Mr. Inks responded that we didn't acquire any properties that weren't needed significantly for the rl.ght -o -way for this project. But as the crossover cuts tl rougli them it creates unusable portions of property. The only use is to the adjoining landowner. Caroline Partners is the predominant owner of land m this area.. Mr. Pee kowsl i, refei ing to a leap of the parcels the taffhad provided, asked ed xf all the parcels shown would become Commission property. Mr. inks responded that it would not. We're going purchasing any further south than 4309 or 4336`0. 4223 sits close to the heart of what we've acquired, so there will be some remainder. We don't think it's a lot, but we don't know the exact lines yet until we get the final engineering drawings. Mr. Downes made a notion to approve Resolution tion No. 2373) approving and COMMISSION APPRO V H RESOLUTION No. 2373 APPROVING AND ACCEPTING A COUNTER OFFER ro R THE ACQUIS ITION OF PROP ERTY IN TY] E South Bend Redevelopment Commission Regular Meeting — August 17, 2007 6. NEW BUSINESS (CONY.) D. South Side Development Area I continued... SOUTH ID EVEL( PMENi- AREA. accepting a counter offer from Caroline Partners LC for the acquIsitlon of property in the South Side Development Area. Mr. lake seconded the motion. The motioll earned on a vote of four in favor. Mr. . eczkowsl .l. abstained. E. Northeast Neighborhood evelop en Area There was no business in the Northeast Neighborhood Development Area. F. Douglas Roark Economic Development Area Where was no business in the Douglas Road Economic Development Area. G. Other (1) Commi sion approval requested for Agreement for Programs and Services with Urban Enterprise Association of South Bend, Inc. (western Ave. Fa a e Matching Grant program) Mr. Inks noted that the next five documents are all similar. They are agreements with various non - profit agencies to run the corridor facade matching grant programs. The teens of each agreement allow the non - profit to grant up to 60% of the cost of the facade improvement. .t. "he maximum grant is generally $20,000. The purpose is to complete a noticeable improvement to the corridor, consistent with the revitalization action plan for that com'dor. South Bend Redevelopment Commission l e u ar :Meeting —August 1, 2007 6. NEW BUSINESS {CONY.} G. Other (1) continued... To be eligible, the properties must have the proper insurance and be current on th.ei.r property taxes. They need estimates from at least two heensed contractors for the work to be performed. And, More any work is com .ence 1, the appropriate pem.its must be obtained. Each contractor employed on. the project must submit a certificate of liability insurance. No funds can be disbursed for a grant unless they are purstiant to a mitten contract, so each individual fa ade grant will have its. own contract. And the applicant must agree to hold the City of South Bend harmless and indemnify the city. There is also a listing ofimprovements that are ineligible for the grants. The program terms for each. corridor are the saine, except that for the Western Avenue pro rain there 1s a provision that in certain cases the grant can exceed $20,000. The agreement with the Urban Enterprise Association (UEA) for the Western Avenue program is for $114,000. Mr. I eczl o s i asked how much experience the 'Grin Enterprise Association has with the fa ade grant program. Is this the first time or do they have a track history with it` Mr. Inks responded that this is ncw. At the last Commission meeting we were look mg at establishing some Urban Renewal Areas for Miami St., Mishawaka, Ave. Those plans have been put on. bald. Mr. Inks reminded the Commissioners of his explanation at that South Bend Redevelopment t ommissio Regular Meeting — August 17, 2007 6. NEW BUSINESS (CONY.) G. Other (1) continued... meeting that the corridor progra.m.s needed. to be run. as part of an economic develops -.exit area, a redevelopment area, are urban renewal. area or have an ellgIbl.e neighborhood development corporatlo.n offer the program. Subsequent to that meeting ft was determined. by the U A's legal counsel that they qualified as neighborhood development corporation and could offer this program on Miami St, Mishawaka a Ave., and Western Ave. It seemed easier to have the U A function as a D.elgb orhood development corporation and run these three programs than to establish urban renewal areas for two of them. We may revi.s .1t the potential of establishing urban renewal areas in order to run some of the other corridor programs., but we're not ready to decide that yet. Mr. Pee l ows i Mdleat d he didn't have a problem with the ends; but may bave with the means. He noticed that Lee Slavins as signed for the UEA and asked his relationship to the'UEA. Mr. Inks responded that Mr. Slavinskas is PresideD.t of the'UEA board. Mr. Peczkowski asked if he had some other public office before. Ir. Inks responded that he was a Common COUneil member many years ago. Ms. Meyer, yer, Director of Community I evelopmcnt, who will be administering the program stated that, although t cse contracts with the Redevelopment Commission are new, the UEA has served the city by looking at the Western Avenue Commercial Corridor 27 South Heed Redevelopment Commission Regular Meeting 17, 2007 6. NEW BUSINESS ON T. G. other (1) continued... since the corridor program's inception ill 1998. During that tim.e th.e ' A a.dm' n' ster ed grant programs for Western Avenue. Mr. Pcezkowski commented that the U. A., then,, has no e pert.i.se yet in running grant programs for the Miami St. and Mishawaka Ave. corridors. Ms. Meyer disagreed. The EA is a hoard of people that has been. operating for t enl -pl s years. Every corridor group has a col n -uttee representative of the businesses and the residents on those co.rn.dor . They are the group that creates their recommendations acid proposals to the e1t r for the kinds of programs they want. So, the fact that each of these corridors is requesting the facade matching grant comes directly from the corridors. One of the A's requirements always has been that any project eonling for-ward to them has to have the generalized approval or recommendation from those corridors before it would approve them. Mr. Pcczkowski asked for a list of board members of the UEA. Ms. Meyer said that would be provided. The UEA is a non- profit public entity life the Redevelopment o missiol.. Mr. King made a motion to approve the Agreement for Programs and Services with 'Urban Enterprise Association of South Heed, Inc. (Western. Ave. Fa ade Matching Grant program) Mr. Downes seconded the motion. COMMISSION APPROVED Tlff- AGREEMENT FOR OGPAMS AND SE VIC I-S WITI -I TI-IE. URBAN ENTERPRISE Asso IATION of So ,rt-.1 BEND., D, INC FOR THE WESTERN AV E. FA 'A DE M TC'1-1ING PANT PROGRAM South Bend Redevelopment Commission Regular Meeting 1. 7, 2007 6. NEW BUSINESS (CONY.) G. other (1) continued... The motion passed with a vote of four in -favor. Mr. Peczkowski abstained. (2) Commission approval requested for Agreement for programs and services with r aii Enterprise Association of South Bend, Inc. Miami Corridor Facade Matching hing Grant program Mr. King made a .motion to approve the Agreement for Programs and Services with Urban. Enterprise Association of South Bend, Inc. Miami Corridor . 'w ade Matching Grant program Mr. Downes seconded the motion. The motion passed with a vote of four in favor. Mr. Pcc l o vs i abstained (3) Commission approval requested for Agreement for programs and services with Urban Enterprise Association of South Bend, Inc. (Mishawaka a Ave. Fa ade Matching Grant program) Mr. King ni a.de a motion to approve the Agreement for Proglra .is and Services with U'rban Enterprise Association of South Bend, Inc. (Mishawaka a. Ave. Pa ade Matching Grant prograin Mr. Downes seconded the motion. The motion passed with a vote of four in favor. Mr. Peczkows i abstained (4) Commission approval renested for Agreement for programs and services with South Bend Heritage Foundation. (Lincolnway West Fa ade Matching Grant program) .` {_ MMISS[ON APPROVED 'r iE A REE SENT i -01Z PROGRAMS AND SERVICES W111 -.I 111 U1Z13A N EN "Y'ERPRISE A SOCIATI ON OF SOUTH BEND, INC;. f-' OR THE MIAMI CORRIDOR FA _`ADE MATCHING GI ANT PROGRAM 1 OMMISSION APPROVED THE AGREEMENT FOR PROGRA I S AND S ERV ICES WITH THE URBAN ENTERPRISE ASSOCIATION of Sou -a -I -i BEND, INC. FOR THE MIS HAWA ,A Avis. 'A BADE MATCHING GRANT PROD AI South Bend Redevelopment Coni.mission Regular Meeting -- -August 17, 2007 6, NEW BUSYNESS (CONT,) G. Other (4) continued... Mr. Inks asked that this item be tabled. South Bend. Herltage 'Fotindatlon is still reva.cwlng the terni.s of the agreement and has not signed it. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the on nusslo.n tabled .Item 6.G.(4) until the Septcm.bcr 7, 2007 meeting. (5) Commission approval requested for Agreement for programs and services with Near Northwest Neighborhood, Inc. (Portage Avenue Fa ade Matching Gra t program) Mr. King made a motion to approve the Agreement for Programs and Services wAb 'Near Nordiwe t Neighborhood Association {Portage Ave. Facade Matching Grant program ) Mr. Downes seconded the motion. The motion passed with a vote of four in favor. Mr. Pe z o sl i abstained 7. PROGRESS REPORTS Mr. IiLks referred to a report prepared by staff regarding the tax abatements approved at the Aug st 3, 2007 ni.eeting. The new investment those tax abatements represented was between $12,000,000 and 1. 8,000,000. Those abatements represented between 42 and 72 new ob s with payroll averaging between 1, 000, 000 aDd $2,000,000. The fin-ns getting tax abatement have over o Jobs that will remain in the community with payrolls in excess of $25,000,000. When the projects are presented individually, they are significant projects, 30 ITEM 6.G.(4) TABLED COMMISSION APPROVED ED TIDE AG EE 1E "I" I -'0R PROGRAIMS AND E- RVICES WITH THE NEAR 1001 Assoc 'I TIC I FOR THE P0R_' 'AG Avly. FA 'ADD MAI -C RING GIANT PROGRAIM OGREss REPORTS South Bend Redevelopment Comm.ission. Regular Meeting - -- ugust 17, 2007 7, PROGRESS REPORTS (CONS'.) but the cumulative effect Is huge. There was a lot of new business development represented in those abatements at the last meeting. Mr. Pec l owsl i stated that he believed a lot of those projects would have happened even without abatement. He believes the abatements are frosting added to an already baled cafe. Mr. Inks reminded the Conamissioners of a news conference later today at Keyl ank 'plaza regarding the l o vnto vn. De elopn: en.t Strategy. Mr. Blare asked legal counsel for an opinion on Mr. Pee ko vski's assertion that it was illegal, LHICthical or .mmoral for the Commissioners to spear with Mr. Doolittle outside of the Commission meeting. Mr. Leone responded that there are two roles of boards and commissions: either Judicial or legislative. When acting in a Judicia] capacity a comm 1ssion should not have outs .1de conversation about an issue over which they will have Jurisdiction. when acting in a legislative capacity (Projects or policy) it is entirely appropr.tatc to get informatlo.n. from anywhere. It's -up to each commissioner to decide to what level he or she want to accept that information. Mr. .Pecz ows i stated that that is where the moral component comes in. Mr. Downes stated that it 1s an individual prcference, not dictated by anyone else. Mr. Leone agreed. He compared it to the way legislators get information on topics they will vote on. Mr. Blare stated that he believes that if Commissioners are going to serve the public, they can do it from someplace other than the actual public meeting. They need to be permitted to tally to anyone who has I nformation they might need to male a wise decision. 31 South Bend Redevelopment Commissioll Regular Meeting — August 17, 2007 7. PROGRESS REPORTS (CONY.) The public needs access to its legislators. Mr. Pecz ows l stated that by doing so, Commissioners were circumventing the public input on the process by having private meetings with the developer to the exclusion of doWnientati.on- Mr. . Downes noted that that 1s Mr. Pec kows is opinion. He does not agree. Mn King referred back to the tax abatement report prov1ded by Mr. Inks. He asked that it bccome a regular report. He also asked for a report on what action the Council tales on the Commission's recomrnenda loil.. Mr. 'Inks said teat .111 beIncluded in. future reports. He noted that the Council has riot, to his knowledge, ever refused a tax abatement when the Coninilssio.I .'s recommendahon was in favor. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commisslo is .-: ` -I- C,OMMI S S ION MEETING scheduled for Friday, September 7, 2007 at 10:00 a.m. 9. ADJOURNMENT There being no .further business to come before the ADJourkNmENT Redevelopment Commission, Mr. Downes made a motion that the meeting be adjotimed. Mr. King seconded the motion and the meeting was adjoumcd at t 1:08 a. m. Doijald E. 1 . s, .Director Marcia. I. Jones, o sldent 2 South Bend Redevelopment Conim.i.ssion. Regular Meeting —Au vust 1. 7, 2007 'EXECUTIVE SESSION Aix u t 17, 2007 The South Bend Redevelopment Commission met in. Executive Session on Friday, August 17, 2007 at 9:15 a.m. The meeting was held in R om 1Zoo County -City uilding, 227 West Jefferson, South end, InAla a, for the purposes specified in I.C. -14 x..5- 6• 2 D . Commissioner's Preset: Marcia .tones, President; Karl King, Vice President; Greg Downes, Secretary; Hardie Blake, and Ken Peczkowski. Others resent: Jeff Gibney, Executivc Director, ommunIty & Economic Development, Don Inks, Director,, Economic Development, Attorney Caries Leone, Nick vit wer� Andy Laurent, Jenn.i.fer Laurent, Robert l athia and Cat erill Fanello. The Commis ioll cel"fifies that no topic was discussed other than the subject matter specified In the Pub IIc N o t]ee. The Excc utive S ession vas a j ouni ed at 10: 00 a.. m . CITY of SOUTH BEND, DEPARTMENT of REDEVELOPMENT Printed Naine and Title South Bend Redevelopment C mml* ion