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HomeMy WebLinkAbout10-19-07 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING October 19, 2007 o:oo a.m. 227 west Jerson Boulevard Presiding: Marcia 1. Jones, 'resident South Bend, Indiana 1. ROLL CALL Mears 'resent: :gal Counsel: Ms. Marcia Jones, President Mr. earl King, Vice President Mr. Greg Downes, Secretary Mr. Hardie Blare, Jr. Mr. den Peczkowski Mr. Charles S. Leone, . s , Mr. Shawn Peterson, Esq. Rede elopni.e.nt Staff: Mr. Don Inks, Director Mrs. CberylPhipps, Recording Secretary Mr. Jeffrey Gibney, Executive Director Mr. Bill Schalliol, Econom i c 'Development Specialist Mr. Robert M.athia, Economic Development S eel alist Ms. Jennifer a rent, Economic Development Specialist Mr. Nicholas 'Witwer, Economic Development ment Specialist Ms.. el rah J nnin s, Property Manager Others Present: Mr. Tom 'Price, Mayor's office .Mr. Paul Meyer, Downtown South Bend Mr. Phil St. Clair, Parks & Recreation Ms. Betsy Harriman, Parks & Recreation Mr. Marco Mariani, Downtown South Bead Ms. Jamie Loo, South Bend Tribune ,e Ms. Rita Koala Ms. Linda Wolfson, Community Forum for Economic I ev Mr. Braes Tootha er, CB Ric bard Ellis Mr. Shawn. Todd, CB Richard Ellis Ms. Connie Aches, Grubb & Ellis, Cressy & Everett Ms. Sandy Adler Ms. Amy Hill Ms. Donna Chamblee, Co rep an Real Estate Group Ms. Judith Rubles e Ms. Charlotte Sobel, South Bend Heritage Foundation Ms. Marta. Lewis Mr. Joseph Tillman South Bend Redevelopment Commission. Regular Meeting —October 19, 2007 2. APPROVAL of MINUTES A. Approval of Minutes of the Regular Meeting i of Friday, October 5, 2007. Upon a motion by M:r. King, seconded by Mr. Downes and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, October 5, 2007. B. Approval of Minutes of he Special Meeting of Tuesday, October 9, 2007. Upon a motion by Mr. King, seconded by Mr. Downes and u- nanIMOLIsly carried, the Commission approved the Minutes of the Special Meeting of Tuesday, October 9, 2007. 3. .APPROV AI, OF Cl. .,A MS COMMISSION APPROVED THE MINUTES O ,. 11E REG LTLAR MEETING 0F FRIDAY, oCT BER 2007 COM M IS s10N A1'I'ROVFD -1 -1.1 F-1 MIN U TES OF 1411=; SPECIAL ME.E,TIN oi�, Ti.j [-_S AY. OCTOBP 1 o Redevelopment t Commission Claims submi-tted October 19, 2007 for approval. 324 AIRPORT AEDA CPI-I Landscape Services 593.50 Ken Herceg & Associates, Inc. 15,998.45 DLL 75,525.00 Krisor & Associates 250.00 414 SAMPLE EWING GENERAL CFH Landscape Services 1,890.00 South Bead Water Works 319.16 420 FUND TIF DIS `.RIC -SBCDA GENERAL Ortiz Concrete 12,319.00 Indiana Michigan Power 425.99 Schindler Elevator Corporation 1.27.68 Rose Pest Solutions 90.00 AT & T 26.94 CB Richard Ellis 816.03 R.E. Pitts & Associates,, In . 6,1 0.00 R. E. McCloskey & Associates, 'Inc. 51000.00 CFH Landscape eri.ees 324.50 CB Richard Ellis 924.93 2 South Bend Redevelopment Commission Regular Meeting — October 19, 2007 3. APPROVAL OF Cl -,AIMS CO T, AT & T 27.05 Downtown South Bend, Inc. 465062.50 422 FUND WEST WASHINGTON CFH Landscape Services 120.00 426 FUND MEDICAL D S T RI C T T IF DLZ 551200.00 428 FUND AIRPORT 2003 BON 1 &'R Excavating 613,945.04 Voordc D ve Extensioll Selge Constraction Co. .1nc. 268,977,71 Olive Road Reconstr Uctio 430 FUND SOUTH SIDE DEVELOPMENT CF'H.. Landscape Service 210.00 1,105,3.4 Total I X05,3 2.48 Mr. Pecz o sl i asked for the breakdown down o the DTSB claim. Mr. Inks gave him a copy of the claim. Mr. links also noted that based on review at previous Come issioll meetings, staff did send a letter to DTSB and committed to doing a walk through ugh f the downtown with DTSB in conjuiicfto.n with their next claim. Mr. Inks and Mr. Mariani did that walkthrough and reviewed the work that had been requested. Mr. Peczkowski said that he noticed that the last of the shortcomings lie had photographed were completed just last week. However, the litter patrol seems to still inadequate. The litter that had been in the area ofMain and LaSalle for three months was cleaned up, but after that there is litter that has been in other containers for three weeks. He thiiiks the organization is being overpaid for very little work. Mr. Downes made a motion to approve the Claims submitted October 19., 2007. Mr. King seconded the motion. The vote was four to one with Mr. Peczkowski opposed. The motion carried. 3 OM M I [ON A PP I M ED THE CLA IM S SUBMIFI'TE -1) OCTOBER 19, 20071 AND ORDERED E THE CHECKSTO BE RELEASED South Bend Redevelopment Commission Regular 1eetin — October 19, 2007 4. COMMUNICATIONS A. Petition from citizens and stakeholders regarding purchase and demolition of the 500 block of South Michigan Street. (Fat Daddy's Block) Mr. Inks noted that a petition was received from citizens and stakeholders in the 500 block of S. Michigan Street, more commonly monl referred to as the Fat Daddy's block. He read the following hea mg from the petition: We the under-signed concerned citizens and stakeholders qf South Bend andSt. Josej)h Coun�y hereby express otir opposition to the announced p an to ptirc hcise f ind demolish the 500 block cif South Michigan Street, corn n --i only known as port Daddy's block. We urge South Bend city qfficials, elected and otherwise, to pursue alternative native uses for the existino, buildings, for the purposes of both preserving vin ur architectural a h r ita e and �i�hw eve believe o be a in re pr tident use QfPublic,fiinds. Mr. Inks noted that there are 475 signaturcs on the petition. There has not been any kind of ver'f eat'on of those signatures. Mr. Ding stated that he believes the petition is objecting to something for which there is no plan. He has no knowledge of any Commission meeting he has attended or any paperwork hc has seen that says anything about demolishing buildings in the 'at Daddy's block. Ms. Martha Lewis said that she pulled an article off the Intemet from Inside Indiana Business e .ti.tled, "South Bead Plans for New Development Downtown." Number 8 in the list of things planned for downtown was "de no ition of the Fat Daddy's block."' Also, people in some o.fthe offices downtown have told her that that was their 11 South Bend Redevelopment Commissioll Regular Meeting - - -- October 19, 2007 4. COMMUNICATIONS (CANT.) A. continued... Plan. `bat's what inspired a group of people to make their voices known that they were interested in not having it torn down. We want to keep it on the tax rolls and in the private sector and not owned by the city. Mr. King noted that he appreciates public .input and discussion on such things. His point was that lie, too, has seen that kind of misinformation in the press. None of those people is a member of the Commission. If the decision is nude to demo .lsb. that block., it will be made right sere in. the course of a public meeting. hat Gary Dick puts in Inside Indiana B smess or what other people spread as rumors, please pay attention to the fact that it's the `ommission wbo will decide. So far, no decision has been made to d m llsh. the build.l..gs. He asked that she cor .niunieate that back to the people she knows who have an interest in this issue. If it is possible to save those buildings, that woul d be terrific. No decision has been lade to demolish those buildings. Ills. Lewis noted that they simply wanted to get their wishes known about the issue. Ms. Jones reiterated that the Commission appreciates the public input and discussion. That is what makes the public process work. Mr. Peczkowski said that because of the Commission's discussion of the Fat Daddy's block, he was interested in the former Witmer- McNeese building across the street. He took the liberty of calling the pbone number on the For Beat in the window. He spoke with the new owner, Roy Diaz, who lives in California and whose son attends Holy Cross College in South Bend. Mr. Diaz had 5 South Bend Redevelopment Co emission Regular Meeting — October 19, 2407 4. COMMUNICATIONS (CONY) A. continued... also heard the rumors about the demoliti on of the Fat Daddy's block. Mr. Pec l o s i asked Mr. Diaz his opinion of that and about the Fat Daddy's project. Mr. Diaz was surprised that the city was interested in buying the building when he , himsel:f, would hke to buy the building. Mr. Pee l o wsi x belleves to re is private interest and that the Commission is jumping the gun to put it on its acquisition list in two weeks. Mr. Dias claims his interest in the block would be to rehab it. He would not de.nio lsb it. 'He is conecmed about his inability to rent the Witmer-- McNeese building. So far the only contact has be has had for his space is from a bar, which he `eels is an incompatible use with the tenant upstairs, an art studio. Mr. r. Diaz .popes the city will back off on. the Fat Daddys purchase. Upon a motion by Mr. King, seconded. b :Mr. Downes and unanimously carried, the Commission accepted the petition presented regarding purchase and demolition of the 500 block of South Michigan Street. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Public Hearings (1) Public Hearing n Resolution Nu. 2382 amending the Airport Economic Development Area Development Plan. (adding 1624 and 1630 Maplewood to the acquisition list) 6 COMMISSION ACCE1]TED T11E PETITION PRESENTED REGARDING PURCHASE AND [ [.- NOLITION OF TIE 500 BLOCK K O1; OUTH MIC111GAN STREET. TI -IERF WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular 'Meeting .....October 19, 2007 b. NEW BUSINESS (CONY.) A. Public Hearings (1) continued... Mr. Inks noted that the public hearing file is complete, containing: l a Notice of .searing', 2 a copy of Resolution No. 2382, (3) an affidavit from the South Bend Tribune that the Notice of Hearing was published in that newspaper on October 5, 2007; an. affidavit from the 'ri -County News that the Notlee of Hearing was published in that newspaper on October 5, 2007; a statement from Mr. Witwer that on October 5, 3007 affected property owners and registered neighborhood associations were sent Notice of the Publ i.e .Hearing; and (6) as of 10:00 a. m., no written remonstrances were received. _Mr. Wit er noted that Re olut.ion No. will add two properties to the Acquisition List of the Airport Economics Development Area Development Plan: 1624 and 1630 Maplewood. These are two r esi.dent.ial properties are in an otherwise industrial area. The Commission has already purchased two other homes behind these on Knoblock Street. All of them are voluntary aeclisItions. Ms. Jones opened the Public Hearing for PUBLIC HEARING ON RESOLUTION o. 2382 anyone who wished to speak regarding Resolution No. 2382. There was no one who wished to spear. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (2) Commission approval requested for Resolution No. 2382. 7 South Bend Redevelopment Commission Regular Meeting .- ..October 19, 2007 6. NEW BUSINESS (CONY.) A. Public Bearings (2) continued... Mr. Pcczkowski noted that the Maplewood address appears to he jest cast of hat was classically considered as the industrial park.. Mr. Witwer responded that it is at the western edge of the industrial park, but we expect the industrial park to grow and surround these properties. Mr. Inks explained teat these five acquisitions are voluntary acquisitions. Staff has been approached by the property owners who are surrounded by industrial development and wish to he bought out. As the Commission supports industrial development, we recognize its impact on nearby residences and to the extent we can, we accommodate those people and buy out their property at market value. Upon a motion by Mr. Downes, seconded by CO ISS10 N A P P WV1.1D RESO LUTION No. 2 _382 Mr. Peezkowski and r. nan.1mously carved, END1' ' 'n -iF AIRPORT ECONOMIC the Commission approved Resolution tion EVE'L OPME T AREA DEV E L MvI E T PLAN No. 2382 amending the Airport Eco omle Development Area Development Plan. (3) Public Hearing on Resolution No. 2383 amending the Nest Washington - Chapin Development t Area .Deve o x e t Plan. (Contracting the boundaries) Mr. Inks noted that we intended to hold d public hearing today on Resolution No. 2383, but the Notice of Hean'ng Hearing did not get published in the `ri- County Nevis as required. The public hearing on Resolution No. 2383 is being rescheduled for the South Bend Redevelopment Commission Regular Meeting — October 19, 2007 6. NEW BUSINESS CONT. A. Public Hearings (3) continued . 16 10 Commission's regular meeting on. November 2. Upon a motion by Mr. Icing, seconded by Mr. Downes and unanimously eaiTled, the Commission rescheduled the Public Hearing on Resolution No. 2383 to 10:00 a.m., November 2, Zoo. Mr. Inks noted for anyone interested in attending that public bearing, the November 21, 2007 meeting will tape place at Madison Center in the Meting Room West. (4) Commission approval requested for Resolution No. 2383. Action on this item tabled Until. November following the Public Hearing. Mr. Inks asked that Item 6.G.(1), (2) and (3) be moved up on the agenda. These items include a public hearing which is more appropriate at this point in the meeting. There was no objection and the items were so moved. G. Douglas Road Economic Development Area (1) approval requested for Resolution loo. 2390 authorizing the issuance of City of South Bend, :Indiana, Redevelopment District Tax Increment Revenue Bonds of 2007, Mr. Inks noted that these flems were late additions to the agenda. Staff expected negotiations would be further along, so a COMMISSION RESCHEDULED 11-IF PUBLIC HEARING ON RESOLUTION No. _3 -1- 10:00 A.M., NovEMBER 2, 2007. South Bend Redevelopment Commission Regular Meeting --October 1 , 2007 G. NEW BUSINESS (CONY.) G. Douglas Road Economic Development Area (1) continued ,,.. Public Hearing was scheduled for today. We are not ready to proceed today, so he asked that Item 6.G. (I) be tabled until the November 2 meeting. 'Upon a motton by fir. King, seconded by Mr. Downes and unanimously carried, the Commission tabled Item 6.G. to November 2,, 2007. (2) Public Hearing on .resolution No 2391 appropriating the proceeds (including investment e.arnings thereon) of the Redevelopment District Tax Increment Revenue Bonds. Mr. Peterson noted that the Conine .ss.ion established the Douglas load Economic Development 1- rca in 2005 for the purpose of establishing a tax increment financing district to fund the expansion of Douglas load between S.R. 23 and the Mishawaka city limits to provide for development in that area. Since that time a project has cope on lire, the Memorial Health and Home facility at 3355 Douglas Road. That facility will lay its first taxes in 2008, so it will be possible in 2008 to use the tax increment in the development area to leverage the completion of the Douglas Road improvements. Staff has been in conversation w1th .Holladay properties which owns other property in that area about another development that could be coning on fine and trying to rake a deal come together to make this happen. We started in the spring of 2007 becaLlse of the 10 IovFi1 t jvj� 2,, 2007 South Bend Redevelopment Commission Regular Meeting — October 19, Zoo 6. NEW BUSINESS (CONY.) G. Douglas Road Economic Development Area (2) continued... revenue projections as well as market conditions. That dIdn't quile word. in the way it was going to be structured. we thought we had a deal comincy tip at the end of the month when wells Fargo, who was nancnig some of their other improvements, had agreed to help purchase this bond. Unfortunately, on Tuesday, w received a call from wells Fargo that they had made another requirement on the purchase that wasn't acceptable le to every party involved. We had drafts of everything ready on Wednesday that had to be ulled. we're now hoping to be able to work somethin out before the end of the month because we do have a good construction bld that came in. We wanted to let you know why this came on so suddenly—to be able to award the eonstnietion bid ahead of pricing for next year's constniction. If you would open the Public Hearing and then continue it until November 2, we wouldn't have to republish the notice. Mr. King asked if nain the changes required by the financial institution would result in substantive charges to Resolution No. 2391 the way it has been published? Mr. Peterson responded that the parameters outlined in Resolution No. 2391 will remain the same. The maximum bond to be authorized will be $ l ,300,000. The maximum interest rate will be the same as has been advertised. Mr. Peczkowski asked why Holladay 11 South Bend Redevelopment Commission Regular Meeting —October 19, 2007 6. NEW BUSINESS (CONY.) G. Douglas Road Economic Development Area (2) continued... Properties would serve as the guarantee on this bond. Will Holladay be building the street? Mr. Peterson responded that the City of South Bend will construct the road. The reason. Holladay would guarantee the bond is because there isn't a long history of increment in the Douglas Road Economic Development Area. It wouldn't readily appear that there woLild be enougli uicren -ie nt to support payments on. th.e bond. When olladay's new development comes on line, there wi I l be enough increment to repay the bond. Mr. lee zl .owsl .1 asked what Holladay is Putting at risk. . Mr . Peterson responded. that Tat security Holladay will put up is what is still being worked out. Ms. Jones opened the Public Hearing for whoever w shed to be heard concerning Resolution No. 2391. Hearing no ore, she asked if the Commissioners wished to continue the h eari ng until 10 : 00 a.rn., November 2, } . Upon a motion by Mr. King, seconded by COM I ISS ION CONTINU E 'ri-ih PUB uc HEARING ING Mr. Downes and unanimously carried, the ON RESOLUTION No. 23 91 UNTII- 1 (x:00 A. M. , Commission continued the Public Heafing on NOVEMBER 2, 2007 Resolution No. 2391 until 10:00 a.rrm., November 2. 2007. (3) Commission approval requested for Resolution loo. 2391. Item 6.G.(3) was tabled to November 2, 2007 ITEM 6.G. (3) WAS TABLED 12 South Bend Redevelopment Commissioll .regular Meeting — October 19, 2007 G. NEW BUSINESS (CONY.) B. South Bench Central Development Area (1) Commission approval requested for Resolution No. 2385 related to acquisition of property in the South Bend Central Development Area, (505 and 513 S. Michigan St, Fat Daddy's outlet an former Beebe Cabinet) Ms. Laurent noted that Resolution 2388 sets the offering price for two properties outlined in the Downtown Development Strategy as key ac uis .tlo s, The first is Fat . a.ddy's Outlet at 505 S. Michigan, with a fair ruse value established at 101 , 5 0 0 acrd the second j.s t he vacant Beebe be abinet building at 51.7 S. Michigan with a fair ruse value established as $87,000. The fair ruse value is set as the average of two certified MAI appraisals. The resolution authorizes an offer to PUrehase to be sent to these property owners. Both are listed with commercial real estate brokers and thus we consider there to have willing sellers. Documentation of the poor condition of both of these buildings is contained within the appraisals. Fire has destroyed one of the buildings entirely; the majority of square footage is currently unused or abandoned, and all have exhausted the economic life expected of commercial buildings when needed maintenance and renovations have not taken place. The depth of the buildings and lack of elevators contributes to their functional obsolescence. A commercial enterprise, Fat Daddy's outlet, continues to operate in one of the buildings, and thus we want to be sensitive to ongoing business operations in any discussions about the future 13 South Bend :Redevelopment Commission Regular Meeting w.etobe# 1, 2007 6. NEW BUSINESS (CONY.) B. South Bend Central Development Area (1) continued... use of the site. We understand the family is interested in liquidating the assets of the business, and is pursuing the sale of the inventory separately and s1multancously with the real property. Upon acquisition, it would be our intention to engage a professlon.a.l. design 4 -tad engineering f n-n with e pericnce in stabilizing building facades to study the reuse of the street face of the block. There is consensus that the scale and vestiges of character of the buildings contribute valuably to the historic urban core of South. Bend. City Plan established policy that demolition is a last resort and staff tales that very seriously. The market et potential for redevelopment of the site is Compelling but cannot be understood in a vacuum. We will be incorporating this i i ortant site anchoring the southem en' d of downtown as we tale a comprehensive ehensive cool at planning for connectivity and rebirth of the area around Coveies i stadium, the Main Library expansion and redevclopnlent of the fornncr Studebaker er Museum site. Mr. Peclosli noted that he has already presented a pry vate sector buyer. Mr. Diaz is a arc of the appraised value the Commission has set as the purchase offer. He has asked that he be given two weeks to pursue a purchase. Mr. Peczko ski doesn't see the need for the Commission to rush to send the purchase offer before the private sector has been given a chance to work. And Mr. Diaz has already invested in the area. He would 1 South Bend Redevelopment Commission Regular Meeting ,- October 19, 2007 G. NEW BUSINESS (CONY.) B. South Bend Central Development Area (1) continued... life to have some control over the compatibility of that block with investments lie has made. Snapping up this building continues the Com.m.Issio ' anti-business- friendly atmosphere. we're just increasing our portfolio of properties. Mr. l ec lows l asked that we hold_ off for two weeps to give the private sector a chance. Ms. Laurent responded that the property is not being quickly en off of anybody's radar screen as to what's available in the private market. et. She has had extensive conversations with the representatives of both of these properties as well as Mr. Diaz in that purchase. This has been an ongo' discussion in our department for a year or year and a half This is not news, it's not being shoved down anybody's throat. This is a professional decision that we've arrived at together. Mr. Gen lle is a straight forward business guy. Ms. Laurent has told him repeatedly that if he gets an offer, he let her know. we're not talking in wishful thinking. We've done our past in assessing the true market value. The folks who have been looking at the building might be interested in continuing that operation. We're tryi South Bend 'Redevelopment Commission Regular Meeting -- ...October 19, 2007 6. NEW BUSINESS (CONY.) B. South Bend Central Development Area (1) continued... to purchase this property. It does set an offering price and allows us to approach the property owner to try to negotiate purchase of the property. If there are good opportunities for private development, we won't stand in the way of that. But this does allow us to rove forward with at least an initial offer on the property. Our understandIng is that tbe asking -price is significantly higher than what the Commission is offering this morning, so there will be a fair amount of negotiatlo.n ahead of us. Mr. ding noted that these buildings have elements that are well worth saving, but those elements and the buildings they are attached to are rapidly deteriorating. By our taking control of those buildings, we can provide some mamte a ee to prevent further detenioratlon, we are actually enhancing the prospects of a future private sector acquisition and rehabilitation for those buildings. 'Mr. King made a motion that Resolution Igo. 2388 be approved. Mr. Townes seconded the notion. The motion passed on a vote of four to one w1th Mr. Peczkowskl oppose.. (2) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Title work, 513 & 505 S. Michigan St, 16 COMMISSION ION APPROVED RESOL.UTION No. 2358 RELATED TO ACQUI S IT ION 0 F P ROPERTY III THE SOUTF-i BEND r,` T Ai.- r vi -1 0PN4J -_;1NT AREA South. Bend Redevelopment Commission. Regular Meeting — October 19, 2007 G. NEW BUSINESS (CONY.) B. South Bend Central Development Area (2) continued... Ms. Laurent noted that staff received a proposal from Meridian Title Co. to per `on a preliminary title search for the property at 505 and 513 S. Michigan St. for a cost of $300. Staff recommends accepting the proposal. Mr. Downes made a motion to approve t he request for proposal and to accept the proposal from Merldian Title Co. for title work related to 505 and 51-3 S.Mlel .i an. St. at a cost of $300. Mr. Blake seconded the motion. The vote was four to one witb Mr. Peczkowski opposed. The motion carried. (3) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Survey work, 520 S. Lafayette) Ms. Laurent noted that this item and the next two are related to disposition of the 'on er t u e elcr Museum site. The property is currently owned by the City of South Bend and the l edevelopmeDl A thor qty. W would like to begin the process of bringing it under the Commission's ownership. W consider this a prime development site. We want to incorporate this property into the Coveleski neighborhood planning. A request for proposals was issued for engineering services for the completion of an ATA survey. Three proposals were received. Wig t an Petrie for a fee of $2,600; 00; A.bo Marche for ,too; and Danch 1 MERIDIAN TITLE CO. MR THE. SCOPE OF SERVICES AND FF1J.-_ PROPOSFI) South Bend Redevelopment CommIssioll. Regular Meeting — October 19, 2007 6. NEW BUSINESS (CUNT.) B. South Bend Ventral Development Area (3) continued... Hamer for $3,350. Staff recommends accepting the offer from Wi btman Petrie. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously caiTi e, the Commission approved the request for proposals for engineering services and accepted the proposal from Wightman Petrie for the scope of services and fee proposed. (Survey work, 520 S. Lafayette) (4) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Appraisals, 520 S. Lafayette) .mss. Laurent noted that thr e proposals for appraisals were received for the d1sposifton appraisals for the fornaer Studebaker 'Museum site. The two lowest were from Rick Pitts in. the amount of $2,300 and Dick McCloskey in the amount of $2,000. Two appraisals are nc de . Staff recommends approval of both. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved the request for proposals and accepted the proposals from Rick Pitts and Richard McCloskey for the scope of services and fee proposed. (520 S. Lafayette) (5) Commission approval requested for proposal for professional services in the South Bend Central Development Area. is COMMISSION APPROVED THE RE UE. T FO PROPOSALS FOR ENGINEERING SERVICES AND AC'C'E.PTEL THE PROPOSAL, FROI I WIGHTMAI PINT IE FORTH SCOPE OF SE-R VICES AND FEE PROPOSED JRVL Y WORK, 520 S. LAFA 'L:; "I T['-- COMMISSION APPROVED THE REQUEST UEST FO1 PROPOSALS AND ACCEPTED THE PROPOSALS FROM RICK PITTS AND RICHARD 1C'CLOSKEY FOR THE SCOPE OF SERVICES AND FEE PROPOSED. (524 S. LAFAYETTE South Bend Redevelopment Commission. Regular Meeting — October 19, 2007 6. NEW BUSINESS (CONY.) B. South Bend Central Development ent Area (5) continued... (Title work, 300 -500 blocks S. Main St., former Studebaker National Museum. site) Ms. Laurent noted that staff received a proposal from Meridian Title Co. for title wore: related to the former Studebaker Museum s1te. The proposal was for 100 per parcel or $boo. Staff rccommends accepting the offer. Upon a motion by Mr. Downes, s, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal and accepted the proposal. from Meridian 'I "Itle for the scope of services and fee proposed. (6) Commission authorization requested for .United Way to hang banner on Wayne Street Garage beginning immediately and ending November 3 0, 2007. Ms. Jennings noted that United Way of St. Joseph County has requested to hang an eight foot by forty -six foot vertical banner flush to the side of Wayne Street parking garage, facing St. Joseph St. until November 30. The banner will have the United Way logo along with a list of pacesetter community organizations and businesses thanking them for supporting United Way and encouraging the community to give to the United Way in support of a myriad of community services it supports. Staff recommends approval. 1 .QOM M I SS 100 A1.)PROV["' D 11 ] E. REQUEST Fort 1) RO POSA L A N D A CCFF 'TI D411 PROPOSAL FROM AND FEE PROPOSED South Bernd Redevelopment Commission Regular Meeting — October 19, 2007 6. NEW BUSINESS (CONT.) B. South Bend Central Develop ment.Area (6) continued... Upon a motion by Mr. Downes, seconded by Mr. Blare and unanimously carricd, the Commission approved the request from United way of St. Joseph County to hang a banner on the Wayne Street parking garage nt.i l November 30, 2007. (7) approval. requested for proposal for professional services in the South Bend Central Development Area. (Master plan, CoveIeski Neighborhood Planning Area) Mr. Schalliol noted staff has solicited. and received a proposal from H K Sport, Inc. of Kansas City related to creating a master phan for the Coveleski I eigh orhoo . planning area. HOK Sport has been involved with many urban ballpark projects and was the original designer of Coveleski in the 1980s, The planning area boundan.es are Bronson Street on south, Scott Street on west, Wayne Street on north, and Michigan Street on east. The Fat Daddy's black is within this pl rming area., as is the former Studebaker Museum site and the Gates properties. The scope of scrvices for HOK is that they would do a master plan, working with us to develop short, medium and long term strategies for park improvements. 'The proposal has a Part A and Part B. Part A will develop a conceptual master plan for the study area which. will include a development program, land use circulation plan, landscape and open space plan, and a phasing plan. OMMIS SION AP PROVE, D THE I EQUEST F ROM UNITED WAY OF ST. JOSEPH COUNTYTO HANG A BANNER N THE WAYNE TREET PARKIN() RAGEUIN- 1 -11.v NOVFMBER 30 12007 South Bend Redevelopment Commissioll Regular Meeting — October 1. 9, 2007 6. NEW BUSINESS (CON'S'.) B. South Bend Central Development Area (7) continued... Part A will serve as a guide for property acquisition, demolition, and property reuse or rehabilitation. That part of the proposal has a fee of $49,200. The Covelcski neighborhood project proposes the study, design, and development of a mixed use project in and around the Coveleski neighborhood planning area.: looking at Union Station, the Ivy Tower complcx to the south, Gates Chevy and other properties at the south end of the city; and it proposes some improvements ents to the `ovelesli ballpark. Part B will develop a conceptual master plan for are -upgrade and modification to Coveleski Stadium. our main intcrest is to create a new entrance to the stadium northeast of the ballpark's center field area. Hob's fcc for this portion. of the plan is $30,350. Staff requests approval of both Part A and Tart of the proposal for a total fee not to exceed $85,000. At the Commission's next meeting on November 2 a public hearing is scheduled on Resolution No. 23 85 amending the boundaries of the South Bend Central Development Arca and adding properties to the acquisition list. Some properties we actively grant to acquire, others we want to be involved in. The main chunk of properties relates to the Gates properties. A young man has just purchased the synagogue just north of the ballpark for residential use, but doesn't 21 South Bend Redevelopment Commi.ssi.on. 'Regular Meeting — October 19, 2007 6. NEW BUSINESS (CONY.) B. South :Bend Central Development Area (7) co .tinue , know whether he should invest money there if we're looking at reorienting the stadium. We" ll work with him as we plan for the area and either work the synagogue into our plan or relocate him. We want to get an Idea ofour potential costs lie -fore moving ahead. on any of the project. .iron. a ballpark perspective, one of the pushes in the disco ion, even 20 years ago when they designed the stadium, was the entrance into the park. . lie entrance is currently at the SW portion of the site. we're looking to move the entrance into the NE, entering -from the outfield, and .more naturally fi-om the city. It is more logical, and better utilizes the outfield.. when the park was developed, a walkway was included along the outfield. It is seldom used. model for what we're considering is victory Field in Indianapolis. Its entrance is at the outfield, which provides a nice area for picnics, a children's area, etc. Across from the entrance are the government center, parking garages, and parrs. Mr. Downes asked what the timeline is. Mr. challiol responded that the master plan will tape about -8 weeps, beginning early November. we would try to purchase the Gates property by the end of the year. Gates won't be moving to the south side until spring or early summer. we wouldn't be in the position to begin any demolition of the Gates property until late 2008 or early 2009. 22 South lead Redevelopment Commission Regular Meeting — October 19, 2007 6. NEW BUSINESS (CONY.) B. South Bend Central Development Area (7) continued.., Mr. Peczkows i asked how many of the fields Hod. has worked on are single A. Mr. Schalliol responded that Fort Wayne is single A, the Isotopes are single A, They have worked in every level of baseball. Mr.. eez o vski said he understood. that when a team is successful and. requests improvements to their field., the c.1ty responds. He asked if the Si lverhaw slave been. successful so that they deserve this kind. of cooperation. 'Why would we tie up this large a sum of money wben the ballpark serves only a limited number of people 'He said the plan seemed 1.1 e a nice daydream, but lie couldn't see that it had mucli merit. Mr. Schalliol responded that the ballpark is a city park. The chmate here makes es its use seasonal, but it is used when the team is away for other civic and cultural events. Mr. Peczko sl i questioned whether any retail could succeed based on that limited and seasonal traffic. Mr. Schafliol responded that we expect the majority of new development to be residential. The retail will be more neighborhood retail than ballpark retail. Mr. eczl owski : The Granger church has already taken a little chunk in that section. Its use is non - profit, not retail. Your plan is going to have to deal with an investment that has already been made. If the neighborhood is going to reflect the services provided by the operation, where exactly are you going to get retailers who are interested in locating in South Bend Redevelopment Commission Regular Meeting — October 19, 2007 6. NEW BUSINESS (CONY.) B. South Bend Central Development Area (7) continued... that k1nd of environment? Mr. Downes responded that the HOK study will dete. .ine if retail is feasible in that environment. Mn Gibney: Ken, what do you mean when you say "that kind of environ ent ll Mr. l c owsl i : That, i n the case of most retail operations, thCY WOUld l.il e to have other file dl.y retail. right next to them. Mr. Gibney: So, that's what YOU mean by C` that type of environment?" Are you saying anything, about the clientele that would be coming to the Granger Community Church program'? There seemed to be an it . li.cation that you. were. Mr. c kowsl is No. Mr. Gibney: Because that is a million dollar investment and I think it will attract other private sector, for - profit investment. .fir. Pec ows is How much experience erience o you have in retail? Mr. Downes: That's why we're firing HOI , to help us with these decisions. Bill, I thought you bit the rail on the head: This is a city park. It's aD asset of the city. It's been there for twenty years, they just had their four millionth fan attend this year. This is a valuable asset to the city. Mr. eclovli: Weil we're getting right South Bend Redevelopment Com issioll Regular .meeting -- October 19, 2007 6. NEW BUSINESS (CONY.) B. South Bend Central Development Area (7) continued... finally this time by reorganizing and changing the entrances. Yes, it's an asset. Mr. Downes: I realize your hindsight is 20/20, as is everybody elscls. Mr. Downes made a motion to approve the request for proposal and to accept the proposal from :Hod. Sport, Inc. for the scope of services proposed and. a fee not to exceed $85,000. -fir. King seeonded the mot.10.11. The vote was four to one with Mr. l cc l owsl i opposed. The motion carried. Mr. King expressed the desire that HOK follow our wishes and be sensitive that there are some parties in that area who are Laing investments now that need to be protected, Mr. Schalliol assured h1 . they. would. (8) Commission approval requested for Lease Renewal in the South Bend Central Development Area. LePeep Restaurant) Mr. Inks noted that Lel e p has been operating in the downtown since 2001. They are a name brand restaurant that's anchoring the Michigan Street shops. They have been a. catalyst for other new development in the downtown. They took a n' s xn 2001 when they opened. That investment has paid some dividends for the city. Jefferson Centre has been renovated with ground floor retail since then, the coning renovation of 10 1. North Michigan, the soon -to -open Trio's. The Michigan Street Shops are 100% occupied 2 CONIMISSION APPROVE-D THE REQUESTFOR PROPOSAL AND ACCEPTED THE PROPOSAL FROM PRO110 S E E A N 1. FE E N01-1 .0 FWt. -, I., 0 South Bend Redevelopment CODI omission Regular .meeting ..- October 19, 2007 6. NEW BUSINESS (CONY.) B. South Bend Central Development Area (8) continued... right now. LePeep has been able to sae its lease payments over the last six years, except for two nion.ths. .hut they have not been .in a Position to cover some CANT reconciliation charges and maintenance charges. The total on those, including the two months back rent, is 1, ' he lease renewal itself will reduce the rest for the space from 1. 0.50 per sft to $9.37 per sft or about $3 00 per month decrease. The CAM would increase on a monthly basis by about $200. The net decrease in rent and CAM is about per month. Mr. Inks noted that part of the proposal for the renewal is to waive the CAM reconciliation, maintenance and two months of rent totaling 2 1,000 and. that the first year of the new lease the rent would be at half the new rate. The final thing is a % additional rent on revenue exceeding $600,000. While we're providing some incentive to keep LePeep as a tenant, should the business become very successful over the term of the lease, the Commission would stand to benefit from that success. LePeep will use these concessions over the next year to refocus on their business wi. th the intent to increase and improve their operations and profitability. Where are other reasons, besides their refocusing. There are some coming improvements in the downtown that will probably be adding additional clientele or customers for their business. R.E..'s new hotel could be complimentary in supporting a PTO South Bend Redevelopment Commissioll Regular Meeting — October 19, 2007 6. NEW BUSINESS (CONY.) B. South Berge Central Development Area (8) e nfi*nued... restaurant in downtown. The 1ndireet benefit to LePeeps of some of the other activity that will be happening in the downtown, along with 10 1 N. Michi an as that project is completed, the opening of "rio's. The more of those types of things that occur, the more vibrancy and attraction there is for downtown for people and, hopefully, an indirect benefit for LcPceps as well. Mr. Inks also noted, from business decision standpoint, it's important for us to Jeep the tenants we have In place now. When we lave vacancies, it usually tales three to six months to fill those vacancies. In this ease, given the rent and space, that would amount to 1 L000 to $22,000. Then, there would be new build. -out oasts. 'From a business standpoint staff feels that this lease renewal makes sense. Staff recommends approval. Mr. Peczkowski said, "We have other businesses downtown that are in trouble. It's nice that we're the landlord. "' Mr.: la e commented that Mr. Peczkowskl has said that we are not business friendly. This appears to he pretty business friendly. Upon a. motion by Mr. Blake, seconded by Mr. King and unanimously carried, the Commission approved the terms of Lease Renewal with Le Peep Restaurant in the South Bend Central Development Area. 27 COMM ION APPROVED THE TERMS of LEASE E �WA L W ITH LEP EEP RF- T URA T IN THE SO I_JTFI BEND E,NTRA L D EVELO PM ENT AREA South . e..d Redevelopment Commission Regular Meeting — October 19, 2007 6. NEW BUSINESS (CONY.) C. Airport Economic Development Area (1) Commission approval requested for proposal for professional services ire the Airport Economic Development ent Area. (Title work, 1624 and 1630 Maplewood) Mr. Witwer noted that 1624 and 1630 Maplewood were added to the Airport Economic Development Area acquisition list following g a public hearing at the beginning of the meeting. Meridian Title Co. has submitted a proposal to complete title work on the two properties for a cost of $300. Staff recommends accepting the proposal. Upon. a motion by Mr.. o nes, seconded by Mr. Blake and. unanimously cam'ed, the Commission approved the request for proposal and accepted the proposal from Meridian Title Co. for the scope of services and fee proposed. D. West Washington-Chapin Developr ent Area (1) Quarterly report by South Bend Heritage Foundation on progress at the Engman Natatorium. Ms. Charlotte Sobel of South Bead Heritage Foundation gave the progress report on the Engman Natatorium. The new back portion of the building is completely etely sheathed. The project should be completely sealed against the weather before the onset of winter. Neighbors who pass by and comment are veer excited mid enthusiastic about it. 2 1 st Century Scholars, IUSB Civil Rights Heritage people, and others have toured it and understand the significance of the city's W4 CO N1 M ISS 10 N AP1-1RO V F,1 TF] E REQUE ST FO PROPOSAL AN D ACC]'J"FEIDTHE PROPOSAL FROM i ERIDI1 IN TI'Y,LE CO. f O T R.f SCOPE- F SERVICES AND FEE PROP O M South Bend Redevelopment Commission Regular Meeting — October 19, 2007 6. NEW BUSINESS (CONY.) D. West Wash i n- Chapin Development Area (1) continued, investment in helping us preserve this extraordinary civil. rights asset. Mr. ding asked about lbs. Sobels's satisfaction with the new portion's structural integration with the original building. Ms. Sobel responded that the addition of the steel to carry through the feel of what happened ill the pool with the girders up above is fabulo .s. The feel will be there. Mr. Downes asked when the project is expected to be substantially complete. Ms. Sobel responded that fundraising is nearly complete, depending on how construction bids come in. They intend to re -bid the project after ownership is transferred to South Bend Heritage. Though that will slow completion, tinder South Bend Her'tage's ownership there won't b c so many legalities to follow and the cost should cone down. Under a best case scenario, it could be complete In summer 2008. Mr. 'Pecz owsl i asked If the property will, then, be tax exempt when owned by South Bend Heritage. Ms. Sobel responded that it will be tax exempt as an educational facility of IJSB. It was never on the tax rolls, owned by the city since the 1920s. Mr. Pec l owsl i asked why South Bend Her'tage would take on management of the building. Ms. Sobel responded that their interest in it is clue to its presence in the heart of the neighborhood South Bend Heritage 29 South Bend Redevelopment Commission Regular Meeting — October 1. 9, 200 6. NEW BUSINESS (CONY.) D. West Washington-Chapin Development Area (1) continued... has invested itself in. They want to preserve the building and dedicate the memory of this building and what it stood for in segregation in th.e c1ty and transform it into a reflection of what the African American struggle has been in our community. Mr. Pee kowsl i said that tells him the philosophy of it, but economically, hat' the underpin ing here for our funds plus the funds that you are raising. Ms. Sobel responded that the underpinning is part of the work that we had .gin CommunIty & Economic Development to rebuild the fabric of the neighborhood. This is around the corner from the museum that South Bend. Heritage jut did the acquisition, site assembly, the construction manage lent, and a lot of the predevelo ment work. We are doing the same thing for the K oC center right down the street. This is part of our rebuilding the Near Westside neighborhood. Mr. Peczkowsl is So what do you anticipate as far as revenues? Is there going to be a fee to enter? GIs. Sobel: No. This is a free facility. Mr. Pec lows is So you are raising money how? 1s. Sobel: We are writing grants. Mr. Pec owski: So grants will be the way that it's going to be paid for forever. 30 South Bend Redevelopment Commission Regular Meeting — October 19, 200 G. NEW BUSINESS (CONY.) D. Wet Washington - Chapin Development Area (1) continued... Ms. Sobel: Well, the operations are going to be der ritten by IUSB because TUSB is going to be ana ing the facility as part of ID its Civil Rights Heritage Center, Mr. ee ows l: And they are on line for liff) : M's. Sobel: I' Call °t C0111MIt the L1111 ers.1ty for fife, but they are on 1111e. Mr. Pee kows l: If WSB just happens to di.saear... Ms. Sobel: Then the property belongs to South Bend Heritage Foundation. 'Upon a motion by Mr. King, seeonded by Mr. Downes and una-mmously carried, the Commission acknowledged receipt of t he Quarterly'Report from South Bead Heritage Foundation on progress at the Engnian I ataton' um. E. South Side Development .Area F. Northeast neighborhood Development Area There was no business in the Northeast Neighborhood l eve o m.e t Area. OMMISS 100 ACKN0 W LE DG ED REC'EIP'I OF THE LJAR' ER1.,Y [ := -1)0 RT S=RO M SOLMi BF_N1) HERITAGE FoUNDATION ON PROGRESS ,r 'nit -, ENGMAN NATATORIUM South Bend Redevelopment Commission Regular Meeting,--.October 19, 2007 6. NEW BUSINESS (CONY.) H. Tax Abatements (1) Commission approval requested for Resolution No. 2389 approving application for real property tax deduction for property located in Section I of The Villas at Blackthorn thorn In the Airport Economic Development Area. (Extension of Resolution No. 191.7 approved abatement for Cooreman Real Estate Group) Mr. Mathia ,gave the staff report. 'ire Coore an Real Estate Group is the developer of the Villas at Lake Blackthom. subdivision located directly north of Brick Road and west o f and adj ac ent to th e U. S. 31. .bypass. It is also adjacent to the Blackthom Corporate Park. The subdivision was granted a five-year e -year reside ti al real property tax abatement by the Common Council on December 9, 2002. fart of the Common Council process is to designate the development as a Residentially Distressed Area (RDA) for five years while the property is sold and developed. The developer has to date only sold about half of the properties in the subdivision. That five year RDA designabon expires November I l , 2007. Without the RDA designation, the remaining lots cannot offer tax abatement. Cooreman. 'Real Estate Group is asking that the RDA designation be extended one year. Mr. Mathia noted that an extension doesn't affect the TIF in the development area because residential improvements don't contribute to TIF. Ms. Jones asked if extensions are granted 3 South Bernd Redevelopment Commission Regular Meeting — October 19, 2007 G. NEW BUSINESS (CANT.) H. Tax .Abatements (1) continued... very often. Mr. Mathia said they are not. He is aware of only one other time. Ms. Jones asked if there is a limit to how .any extensions may be granted. Mr. Math is responded that there is not, This request is for a one-year extension because it is needed before the existing one expires on November l L The .intent would be to apply for a new dive -year abatement for the remaining property before the extension expires. There isn � t time to take a new abatement to two Council meetings before November 11. Mr. Pec l owsl i asked to what Cooreman attributed the lack of interest in these lots. Ms. Donna Chamblee, Cooreman Real Estate Group, said that they were selling property in two subdivisions at the sane tire. The Villas at Lake Blackthom wcrc in the city limits, with city taxes. Westwood .Knolls at Blackthorn, adjacent to the Villas at Lake Blackthorn, had city amenities, but was not in the city limits. Faced with choosing between similar lots, with or without city taxes, buyers close the Westwood Knolls more often. Westwood Knolls is % sold, o sale of the lots in the villas should now increase. Mr. Peczkowski noted that the lots may sell without abatement now that Westwood Knolls is no longer available. Ms. Chamblee said that the abatement is very South Bend Redevelopment Commission Regular 1 eting — October 19, 2007 6. NEW BUSINESS (CONY.) H. Tax Abatements (1) necessary to sell lots In South Bend. It has been a big marl eting tool for theta. Mr. Pec o vs ] asked if the area deserved abatement In 2002 because It was considered blighted. Ms. hamblee responded that it L[ t wasn't a growth area in 2 002 , Mr..Pec l owskl asked if it is a growth area now. Ms. Chamblee responded that it is I i.mprovled., but not fabulous. It st .1l1. needs the help o f abatement. to be able to sell the lots. With development at Portage Pr irle to begin soon, this area should become nn.ore popular. .Mr. I o vncs made a motion to approve Resolution No. 2389 approving an ap licatlon for real property tax deduction for property located in Section I of The Villas at Blackthom in. the Airport Economic Development Area. Mr. King seconded the rnotlon. The vote was four to one with Mr. Pec l o vskl opposed. The motion carried. 7. PROGRESS REPORTS Mr. Matbla reported that there were ten tax abatements held up before they went to the Common Council for their confirming resolutions. Between the declaratory resolution and the confirming resolution a Memorandum of Agreement is written and signed. We wanted to add some new language to the Memorandum of Agreement concerning the circuit breaker tax. Those changes were finally approved by the Council's attorney, so the ten abatements have now had their- eon rmmg resolutions approved by the Council, 3 COMMI S S 10N A P P ROV El- D RE SO LUTION NCB, 2399 APPROVI'N .r AN APPLICATION FOR RFAL PRC PERTY TAX DEDIX- "I'10N FOR PROPERTY LOCATED I F(''1 ON I oi,- Ti-IE VILLAS Al- L 'F TI-IC RN� IN']']--]E AMP RT ECONOMIC E EL P E 't, RE -A PROGREss REPORTS South Bend Redevelopment Commission Regular Meeting .— October 19, 2007 7. PROGRESS REPORTS (CONT.) Mr. Irks noted that staff` is continuing to move the Eddy Street Commons project forward, putting together a development agreement. We have been keeping the Council informed, so as we get close to working with there, they will be up to speed on the project. .fir. Inks also noted that staff is also starting to move forward on the South Bend Lathe demolition. We expect to take bids late in November and start the actual demolition in December. That should really open up the Studebaker Industrial Park to a view from Sample Street. Mr. Witver reported that the olive Road expansion north of the Toll Road bridge and Bn'ck west of the bypass is complete and under budget. Ms. Laurent reported that the 101 I. Michigan project has been on hold, waiting for approval of the Historic Tax Credits application. That approval has finally been issued, triggering the financial commitment that oothal er & Company needed to provide us. Majority Builders will be awarded the contract Monday morning. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commissionis NEXT COMMISSION MEETING scheduled for Fri day, 1 November 2, 2007 at 10:00 a. n. at Madison Center Meeting Room West. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT" Redevelopment elopment ommission, Mr. King made a emotion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 11:20 a.m. 7. Donald E. Inks Director Marcia 1. Jones reisd�at