Loading...
HomeMy WebLinkAbout12-16-05 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING December 16, 2005 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Ms. Marcia Jones, President Mr. Karl King, Vice President Mr. Greg Downes, Secretary Mr. William Hojnacki Mr. Hardie Blake, Jr. Ms. Cheryl Greene, Esq. Mr. Shawn Peterson Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Ms. Sharon Kendall, Executive Director Mr. Tim Williams, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Ms. Jennifer Laurent, Economic Development Specialist Others Present: Ms. Pam Paluszewski, Legal Dept. Ms. Jamie Loo, South Bend Tribune Mr. Mark Tamer, South Bend Chocolate Co. Mr. Milt Lee, South Bend Chocolate Co. Mr. David Sassano Mr. Brad Toothaker, CB Richard Ellis Ms. Autumn Aggeler, CB Richard Ellis Mr. Mark Peterson, WNDU Mr. Eric Walton, WNDU Mr. Mark McDonnell, LaSalle Grill 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, November 18, 2005. Upon a motion by Mr. King, seconded by Mr. COMMISSION APPROVED THE MINUTES OF THE Downes and unanimously carried, the Commission REGULAR MEETING OF FRIDAY, NOVEMBER approved the Minutes of the Regular Meeting of 18, 2005 Friday, November 18, 2005. 6A u r� C South Bend Redevelopment Commission Regular Meeting — December 16, 2005 2. APPROVAL OF MINUTES (CONT.) B. Approval of Minutes of the Regular Meeting of Friday, December 2, 2005. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, December 2, 2005. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, DECEMBER 2, 2005. Redevelopment Commission Claims submitted December 16, 2005 for approval. FUND 305 SBCDA 2003 BOND 1st Source Bank/H. G. Christman Construction 324 AIRPORT AEDA CFH Landscape Services City of South Bend Meridian Title Corporation Jerome E. Michaels, MAI Diamond Environmental Services SBC Ritschard Bros, Inc. Wightman Petrie Environmental, Inc. Fitzmaurice Landscaping Abonmarche Consultants of Indianan L.L.C. R. E. Pitts & Associates, Inc. Trans Tech Electric, L.P. 414 SAMPLE -EWING GENERAL Meridian Title Corporation Indiana Dept. of Environmental Management St. Joseph County Treasurer 420 FUND TIF DISTRICT -SBCDA GENERAL Ampco Parking Systems NIPSCO SBC Ace Safe & Lock Co. $ 6,859.00 3,073.00 544.88 400.00 2,000.00 2,650.00 791.50 95,565.00 1,157.50 605.00 2,772.00 3,400.00 387,042.00 225.00 50.00 114.46 967.88 3.94 1,389.50 50.00 Metronet Installation in AEDA A t, South Bend Redevelopment Commission Regular Meeting — December 16, 2005 3. APPROVAL OF CLAIMS (CONT.) 420 FUND TIF DISTRICT -SBCDA GENERAL continued CB Richard Ellis 4,797.83 Grainger 187.15 Fitzmaurice Landscaping 190.00 Appraisal Group 3,000.00 Rose Pest Solutions 85.00 Michiana Lock & Key 5.94 KRC Roofing & Sheet Metal, Inc. 1,188.88 Schindler Elevator Corporation 110.25 All Phase Electric Supply 13.27 Downtown South Bend, Inc. 5,390.00 422 FUND WEST WASHINGTON South Bend Heritage Foundation 632.50 424 FUND TIF SBCDA - BUILDING OPERATIONS Ampco Parking Systems 10,419.59 428 FUND AIRPORT 2003 BOND DLZ 1,440.00 Brooks Construction, Inc 74,631.45 Reith -Riley Construction 182,919.75 Patterson Dental Supply, Inc. 4,889.00 Edsel K Wiseman and Elizabeth R. Wiseman 2,750.00 GVW Realty, LLC 2,077.00 David P. Koehler and Pauline R. Koehler 4,400.00 ACRI, Inc., and Indiana Corporation 761.00 619 FUND BLACKTHORN Meadowbrook Golf Group, Inc 8,000.00 $ 817,549.27 Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried, the Commission approved the Claims submitted December 16, 2005, and ordered checks to be released. Oliver Road & Nimtz Parkway Reconstruction COMMISSION APPROVED THE CLAIMS SUBMITTED DECEMBER 16, 2005, AND ORDERED THE CHECKS TO BE RELEASED South Bend Redevelopment Commission Regular Meeting — December 16, 2005 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Receipt of Proposals (1) Receipt of Proposals for property located in the South Bend Central Development Area. (Osco's Drug Store, 126 S. Michigan) Mr. Inks noted that one proposal was received by the 10:00 a.m. deadline. The proposal was from The South Bend Chocolate Company. Ms. Greene looked over the proposal and noted that it contained an Application, Affidavit of Non - Collusion, and Statement for Public Disclosure, all properly executed. The proposal offered $100,000 for the property, and a ten percent performance guarantee was included in the amount of $10,000. Ms. Greene noted that the offering price of $400,000 set by the Commission was based on a fair market value established by two independent appraisers as required by statute. The proposal does not meet that offering price; therefore the bid is non - conforming. Based on I.C. 36 -14 -22 the Commission must wait not less than thirty days before accepting any offer less than the minimum offering price. Mr. Mark Tamer, South Bend Chocolate Company (SBCC) explained his proposal. SBCC proposes to invest between $600,000 and $750,000 to rehab the existing building L THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting — December 16, 2005 6. NEW BUSINESS (CONT.) A. Receipt of Proposals (1) continued... and an additional $600,000- $750,000 on retail buildout. The retail development will connect with the Gridiron Row building and allow for expansion of both the Chocolate Cafe and the Nicholas J. Salon and Spa. Between 16 and 40 new jobs will be created at the site and more indirectly at the SBCC. The SBCC proposes to develop the fagade facing Michigan Street into three separate store fronts with enlarged windows. They also propose to add a second story extending out over the existing sidewalk SBCC would be the largest user of the remodeled Osco's building by expanding the existing cafe, developing a state -of -the -art candy store, and incorporating a card and convenience store. Approximately 15% of the remodeled space will be occupied by an expanding Nicholas J Salon and Spa. SBCC intends to request a ten -year tax abatement for the project, consideration of a fagade matching grant from DTSB, and support for approval of the mini sidewalk seating area in front of the building. The timetable for the development is to begin rehab in the summer of 2006, open the expanded cafe and bakery/candy store in January 2007 and open the card and convenience store by October 2007. Mr. Tamer noted that he had tried to work the numbers so that he could offer the asking 14 South Bend Redevelopment Commission Regular Meeting — December 16, 2005 6. NEW BUSINESS (CONT.) A. Receipt of Proposals (1) continued... price of $400,000. He could not. He feels the building is over - valued at that price. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission acknowledged receipt of the non - conforming proposal from South Bend Chocolate Company and referred the proposal to staff for review and recommendation to the Commission in the future.. B. South Bend Central Development Area (1) Commission approval requested for Letter of Intent for property located at 131 S. Michigan St. in the South Bend Central Development Area. ( Quizno's) Mr. Williams reported that Quizno's Classic Subs wishes to exercise its option to renew its lease for 131 S. Michigan St. They propose exercising the option for a four -year lease renewal at a monthly rate of $1,446.25 ($11.34 per sft) Quizno's is current with its lease obligations and has always been a model tenant. Staff recommends renewing the lease as proposed. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the terms of lease for 131 S. Michigan St. with Quizno's Classic Subs. c, 6 RECEIPT OF PROPOSALS FOR PROPERTY LOCATED IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (OSLO'S DRUG STORE, 126 S. MICHIGAN COMMISSION APPROVED THE TERMS OF LEASE FOR 131 S. MICHIGAN ST. WITH QUIZNO'S CLASSIC SUBS (604, South Bend Redevelopment Commission Regular Meeting — December 16, 2005 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) Commission approval requested for Letter of Intent for property located at 123 S. Michigan St. in the South Bend Central Development Area. (CORT Furniture) Mr. Williams noted that CB Richard Ellis has submitted a letter of intent on behalf of CORT Furniture for 123 S. Michigan St. where it is the current tenant. The Letter of Intent proposes a lease rate of $9.85 per sft ($1,255.88 /month) in 2006, increasing $0.25 annually for four years. The average rate over the five years of the term is $10.50 /sft, which is the current market rate. CORT has been a model tenant during its current lease. ►'` Ms. Greene noted staff is trying to standardize its leases, making them tenant- friendly while still protecting the City and Commission. Unlike the Quizno's lease, the CORT lease will expire December 31, 2005 without an option to renew. Staff requests approval of a term and base rate to be incorporated into a standard form of lease which will be presented to the Commission for approval at its next meeting. Upon a motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the terms of lease with CORT Furniture and authorized staff to prepare a new lease with those terms to be approved at the January 3, 2006 meeting. L COMMISSION APPROVED THE TERMS OF LEASE WITH CORT FURNITURE AND AUTHORIZED STAFF TO PREPARE A NEW LEASE WITH THOSE TERMS TO BE APPROVED AT THE JANUARY 3, 2006 MEETING South Bend Redevelopment Commission Regular Meeting — December 16, 2005 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) Staff report on disposition of property in the South Bend Central Development Area. (Air Rights, Northwest corner St. Joseph & Jefferson Streets) Ms. Laurent gave the staff report on the project, noting that staff recommends accepting the proposal from Gameday Centers for development of the air rights over the proposed parking structure at St. Joseph and Jefferson Streets. The offering price set by the Commission was $162,500. Gameday Centers will pay $165,000 for the right to develop a signature Notre - Dame - themed, 125 -150 unit condominium/hotel project atop the parking garage. A performance guaranty and all required documentation accompanied the proposal. Some additional review of financials and references is still appropriate. However, at this time there is evidence enough supporting the developer's capacity to complete the project to warrant approval. This is a project that staff believes will propel vitality and economic life in the downtown, build synergies with the College Football Hall of Fame, Century Center and the University of Notre Dame, and accomplish the City's goals of providing public parking and retail /entertainment options while contributing a uniquely designed structure to the built environment of the downtown core. Staff will work with the developer to finalize a timetable for the project and negotiate terms of a development agreement. Any contract will necessarily be contingent on the 14 South Bend Redevelopment Commission Regular Meeting — December 16, 2005 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) continued... approval by Notre Dame of licensing and marketing agreements for the project. Gameday Centers would be a welcome addition to the downtown for many reasons, and we hope to see it realized. Staff, therefore, requests approval of the proposal submitted for disposition of air rights over the proposed parking and retail structure at St. Joseph and Jefferson Streets. Mr. King noted again the hard work of Ms. Laurent to prepare a high quality Request for Proposals. He believes it has resulted in a great project for the site. Mr. Mark McDonnell asked if this project would satisfy the hotel needs that Century Center has expressed. Ms. Laurent responded that the project will offer a minimum of 125 condos that will be offered as hotel rooms when not in use by their owners. Mr. McDonnell asked what the developer feels his chances are of selling all the units. Ms. Laurent responded that Mr. Spillers feels certain he can pre -sell most the condos. His projects in other cities have been fully or largely pre -sold. Mr. McDonnell asked if the condos will be subject to hotel /motel taxes. Ms. Laurent responded that they would. There are many tax benefits to the city from the project. L South Bend Redevelopment Commission Regular Meeting — December 16, 2005 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) continued... Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission authorized staff to write a letter to the University of Notre Dame in support of project proposed by Gameday Centers for the air rights over the proposed parking garage at the northwest corner of St. Joseph and Jefferson Streets. (4) Staff report on disposition of property in the South Bend Central Development Area. (Hotel LaSalle) Ms. Laurent gave the staff report on the proposals. On December 2, 2005 the Commission received four responses to its request for proposals to develop the historic Hotel LaSalle building. The applicants were Mansur Real Estate Services and the Downtown Alternative, Randall Lipps Investments, Van Rooy Properties and City Centre Associates, and Scioto Development. All of the submissions presented the option of converting the hotel to a mixed use, multifamily residential and retail /commercial development. None of these were entirely conforming bids; therefore the official action staff requests is to reject all bids. This property has been previously offered following all public bid procedures, allowing for negotiations to proceed with any and all interested parties at this point. A second public offering of the property was intended to reach a wider audience and generate a new level of interest in light of a growing demand 10 COMMISSION AUTHORIZED STAFF TO WRITE A LETTER OF SUPPORT FOR THE PROJECT PROPOSED BY GAMEDAY CENTERS FOR THE AIR RIGHTS OVER THE PROPOSED PARKING GARAGE AT THE NORTHWEST CORNER OF ST. JOSEPH AND JEFFERSON STREETS. South Bend Redevelopment Commission Regular Meeting — December 16, 2005 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued... for market rate downtown residential uses. This goal has been accomplished, in that we have received proposals from regionally - renowned residential developers with capacity and experience in completing similarly challenging projects. Staff requests thirty to forty -five days to work with all interested parties to flesh out project details and funding and determine the best proposal for the site. Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried, the Commission rejected all proposals and asked staff to continue working with developers to present a recommendation at a later time. (5) Commission approval requested for Parking Agreement with the South Bend Community School Corporation in the South Bend Central Development Area. (Wayne St. Garage) Ms. Greene noted that the Parking Agreement is part of the Commission's ongoing obligations with respect to the relocation of the South Bend Community School Corporation administrative operations to the Century Building on St. Joseph St. This Parking Agreement was called for within the Relocation Agreement with the School Corporation to provide parking for employees and customers in the Wayne Street Garage. The Parking Agreement incorporates all of the terms and conditions C 11 COMMISSION REJECTED ALL PROPOSALS AND ASKED STAFF TO CONTINUE WORKING WITH DEVELOPERS TO PRESENT A RECOMMENDATION AT A LATER TIME. South Bend Redevelopment Commission Regular Meeting — December 16, 2005 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (5) continued... previously agreed to by the Commission in the Relocation Agreement. Staff requests approval. Upon a motion by Mr. Hojnacki, seconded by Mr. King and unanimously carried, the Commission approved the Parking Agreement with the South Bend Community School Corporation in the South Bend Central Development Area. (Wayne St. Garage) (6) Commission approval requested for Resolution No. 2202 approving a form of lease for 117/119 E. Wayne Street and authorizing the execution and delivery thereof and other related matters. (State Cafe) Mr. Inks asked that Item 6.C.(6) be tabled until the first meeting in January 2006. C. Sample -Ewing Development Area (1) Commission approval requested for Amendment to Contract for Sale of Land for Private Development with Ziolkowski Construction for Studebaker Corridor Disposition Parcel 7 in the Sample -Ewing Development Area. Mr. Laurent noted that in October 2003 Ziolkowski Construction executed a Contract for Sale of Land for Studebaker Corridor Disposition Parcel 7 at Sample and Franklin Streets. The contract required Ziolkowski to 12 COMMISSION APPROVED THE PARKING AGREEMENT WITH THE SOUTH BEND COMMUNITY SCHOOL CORPORATION IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (WAYNE ST. GARAGE) ITEM 6.C.(6) WAS TABLED South Bend Redevelopment Commission Regular Meeting — December 16, 2005 6. NEW BUSINESS (CONT.) C. Sample -Ewing Development Area (1) continued... construct its proposed development within two years of the date of execution. Staff recently contacted Ziolkowski to determine the status of the project. Ziolkowski is still interested in developing the parcel and would like a two -year extension of the time allowed for development. Overall economic conditions and the construction environment were given as factors in the company's inability to invest in the proposed development to date. Staff discussed with Ziolkowski certain temporary measures to mitigate the ILI appearance of the vacant property. Ziolkowski has begun to use the property for short term storage. Those measures were included in the Amendment as Exhibit D. The required improvements include construction of temporary screening along the north property line and north twenty feet of the west property line. Ziolkowski has agreed to the terms of the Amendment and has executed the document. Staff requests approval of the First Amendment to Contract for Sale of Land. Mr. King asked if the screening would conform to current zoning requirements. Mr. Laurent responded that it would. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved the Amendment to Contract for Sale of Land for Private Development with Ziolkowski Properties. r 13 COMMISSION APPROVED THE AMENDMENT TO CONTRACT FOR SALE OF LAND FOR PRIVATE DEVELOPMENT WITH ZIOLKOWSKI PROPERTIES South Bend Redevelopment Commission Regular Meeting — December 16, 2005 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area There was no business in the Airport Economic Development Area. E. South Bend Medical Services District There was no business in the South Bend Medical Services District. F. West Washington- Chapin Development Area There was no business in the West Washington - Chapin Development Area. G. South Side Development Area (1) Commission approval requested for Resolution No. 2201 establishing Commission intent to reimburse certain preliminary costs from the proceeds of bonds. Mr. Inks noted that the Commission has a development agreement with the Erskine Commons project that requires the city to widen Ireland Road west of Michigan Street. A TIF Revenue Bond will help finance the widening. At this point the bond is not expected to be issues until mid- to late - January, but we do need to get started with construction. Resolution No. 2201 allows us to start incurring costs and reimburse the costs from bond proceeds when the bonds are issued. Upon a motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried, the Commission approved Resolution No. 2201 14 COMMISSION APPROVED RESOLUTION NO. 2201 ESTABLISHING COMMISSION INTENT TO REIMBURSE CERTAIN PRELIMINARY COSTS FROM THE PROCEEDS OF BONDS D South Bend Redevelopment Commission Regular Meeting — December 16, 2005 6. NEW BUSINESS (CONT.) G. South Side Development Area (1) continued... establishing Commission intent to reimburse certain preliminary costs from the proceeds of bonds. H. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. I. Other There was no Other Business. 7. PROGRESS REPORTS Mr. Inks noted that there will be a ground breaking for PROGRESS REPORTS the Imagineering project in the Blackthorn area. Imagineering has outgrown its existing facilities and will be building a new 80,000 sft facility in the Blackthorn area. Mr. Inks also noted that we are expecting bids to be opened on January 9, 2006 on Phase III of the improvements to the Main/Colfax parking garage. 8. NEXT COMMISSION MEETINGS The next meeting of the Redevelopment Commission is its Annual Organizational meeting scheduled for Tuesday, January 3, 2006 at 8:30 a.m. The Commission scheduled a Special Meeting immediately following the Annual Organizational Meeting. 15 NEXT COMMISSION MEETINGS A 14 South Bend Redevelopment Commission Regular Meeting — December 16, 2005 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. King made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 10:55 a.m. 56nald E. Inks, Di ector 16 ADJOURNMENT Marcia I. Jones, President