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HomeMy WebLinkAbout12-02-05 Redevelopment Commission Minutes14 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING December 2, 2005 10:00 a.m. Presiding: Marcia I. Jones, President 1. ROLL CALL Members Present: Members Absent: Legal Counsel: 227 West Jefferson Boulevard South Bend, Indiana Ms. Marcia Jones, President Mr. Karl King, Vice President, Part of Meeting Mr. Greg Downes, Secretary Mr. William Hojnacki Mr. Hardie Blake, Jr. Ms. Cheryl Greene, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Ms. Jennifer Laurent, Economic Development Specialist Mr. Nick Witwer, Economic Development Specialist Others Present: Ms. Pam Paluszewski, Legal Dept. Ms. Autumn Aggeler, CB Richard Ellis Mr. Christian Davey, Grubb & Ellis /Cressy & Everett Mr. Noah Davey, Grubb & Ellis /Cressy & Everett Mr. Randall Lipps Mr. Gary Spillers, Gameday Centers Mr. Michael Dimino Mr. David Sassano 1St Sgt. Robert Rhodes, U.S. Marine Corps Mr. King noted a revised agenda for the December 2, 2005 meeting. The items added to the original agenda were: Item 6.B.(2) Receipt of Proposals for LaSalle Hotel and Item 6.D.(5) Resolution 2200 approving a maintenance agreement for the elevators in the Wayne Street Parking Garage. Mr. King made a motion that the Revised Agenda be COMMISSION APPROVED THE REVISED accepted and approved. Mr. Hojnacki seconded the AGENDA DATED DECEMBER 2, 2005 motion and the Commission approved the Revised Agenda dated December 2, 2005. South Bend Redevelopment Commission Regular Meeting — December 2, 2005 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, November 4, 2005. Mr. King noted that Item 6.A.(4) of the minutes should be corrected to show that the date set for Receipt of Bids for the former Rink Riverside property is January 20, 2006 instead of January 6, 2006. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, November 4, 2005, as corrected. B. Approval of Minutes of the Regular Meeting of Friday, November 18, 2005. The November 18, 2005 Minutes were not available for approval. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, NOVEMBER 4, 2005, AS CORRECTED THE NOVEMBER 18, 2005 MINUTES WERE NOT AVAILABLE FOR APPROVAL Redevelopment Commission Claims submitted December 2, 2005 for approval. FUND 305 SBCDA 2003 BOND H. G. Christman Construction Co. Danch, Harper & Associates, Inc. Kon6 Inc. 414 SAMPLE -EWING GENERAL CFH Landscape Services Hull & Associates 420 FUND TIF DISTRICT - SBCDA GENERAL Michiana Lock & Key Wightman Petrie Environmental, Inc. South Bend Water Works Lehman & Lehman, Inc. c $ 7,345.00 Studebaker National Museum 375.00 45,620.20 2,697.50 503.00 220.90 3,800.00 128.29 3,591.95 G :4 South Bend Redevelopment Commission Regular Meeting — December 2, 2005 3. APPROVAL OF CLAIMS (CONT.) 422 FUND WEST WASHINGTON CFH Landscape Services :1 11 424 FUND TIF SBCDA - BUILDING OPERATIONS Ampco Parking Systems 10,419.59 428 FUND AIRPORT 2003 BOND DLZ 2,774.00 $ 77,555.43 Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved the Claims submitted December 2, 2005, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS A. Airport Economic Development Area (1) Staff report on disposition of property in the Airport Economic Development Area. (Lots 4 -6, U.S. 31 Industrial Park) Mr. Schalliol noted that staff received a letter on November 28, 2005 from Mr. Christian Davey of Grubb & Ellis /Cressy & Everett (GE /CE) responding to staffs presentation of the revised price structure for Lots 4 -6 in the U.S. 31 Industrial Park. Mr. Schalliol summarized the Davey letter. The developer is still interested in working to develop a project at this site, but feels the revised price set by the Commission is unfeasible at this time. The developer 3 COMMISSION APPROVED THE CLAIMS SUBMITTED DECEMBER 2, 2005, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Regular Meeting — December 2, 2005 5. OLD BUSINESS A. Airport Economic Development Area (1) continued... proposes to "split the cost" between its revised proposal of $184,950 and the Commission's revised appraisal amount of $289,374 and accordingly, proposes a sale price of $235,200 for the three parcels. Mr. Schalliol reminded the Commission that in 1998, Lots 4, 5 and 6 were put up for disposition by the Redevelopment Commission. In April 1998 no bids were received. The properties have been on the market continuously since 1998 without success. In June 2004 GE /CE submitted a proposal to purchase the lots one at a time ILafter Lots 4, then 5 were developed. Between June 2004 and the present there has been continuous, uninterrupted negotiation with the developer until the staff presented new appraisal numbers at the Commission's request at itsNovember 18 meeting. At the Commission's authorization, staff presented the average of the two appraisals, $289,374, as a revised purchase price under the condition that the developer purchase and develop all three lots. The developer has now countered with a proposed purchase price of $235,200. Staff recommends accepting the developer's offer in the amount of $235,200. Staff will commit to closing on the properties within 60 days so that development can begin on the site in 2006. Mr. King acknowledged the patience and perseverance of the developer and staff, as well as the amount of work each contributed, c, South Bend Redevelopment Commission Regular Meeting — December 2, 2005 5. OLD BUSINESS A. Airport Economic Development Area (1) continued... in working through the complex negotiations to get to this agreement. Upon a motion by Mr. King, seconded by COMMISSION ACCEPTED THE REVISED PROPOSAL Mr. Downes and unanimously carried, the OF $235,200 FOR LOTS 4 -6 IN THE U.S. 31 Commission accepted the revised proposal of INDUSTRIAL PARK. $235,200 for Lots 4 -6 in the U.S. 31 Industrial Park. 6. NEW BUSINESS A. Public Hearing (1) Public Hearing on Resolution No. 2192 amending the South Bend Central Development Area Development Plan. Mr. Inks noted that the Public Hearing file is complete. He asked that the record show that the file includes a copy of the Notice of Hearing, a copy of Resolution No. 2192, an affidavit from the South Bend Tribune that the Notice of Hearing was published in that newspaper on November 11, 2005, an affidavit from the Tri- County News that the Notice of Hearing was published in that newspaper on November 11, 2005, and that, as of 10:00 a.m., December 2, 2005, there were 0 written remonstrances concerning Resolution No. 2192. Mr. Schalliol noted that Resolution No. 2192 adds four parcels to the acquisition list of the South Bend Central Development Area Development Plan: 817 E. Sample St., the vacated alley and vacant lot adjacent to 817 5 South Bend Redevelopment Commission Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... E. Sample St., and 903 E. Sample St. The parcels are needed on the acquisition list to finalize an acquisition process that began on October 8, 2004 when the Redevelopment Commission approved Resolution No. 2084 to add to the Acquisition List a warehouse building at 714 E. Sample St. owned by Art Mosaic & Tile. On November 22, 2004 the Commission purchased the warehouse building to further complement the acquisition efforts in the Sample St. triangle located on the south side of Sample St. Ms. Greene noted that under I.C. 36-7-14 - 17.5 which governs amending a development plan, the Commission is not required to have evidence or make findings that were required for the establishment of the original development area. However, the Commission is required to make the following findings before approving the amendment: (1) The amendment is reasonable and appropriate when considered in relation to the original resolution, plan and purposes of I.C. 36 -7 -14, and (2) The resolution or plan, with the proposed amendment, conforms to the comprehensive plan for the City. Resolution No. 2192 includes this language and, accordingly, adoption by the Commission would satisfy the requirements of the statute. In addition, the Commission is required to hold a public hearing and to consider any written remonstrances that are filed during the filing period specified in the notice. C6 South Bend Redevelopment Commission Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Ms. Jones opened the public hearing on Resolution No. 2192 for anyone who wished to be heard. There was no one who wished to be heard. Ms. Jones closed the public hearing on Resolution No. 2192 for whatever action the Commission wished to take. (2) Commission approval requested for Resolution No. 2192 Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved Resolution No. 2192 amending the South Bend Central Development Area Development Plan. B. Receipt of Proposals (1) Receipt of Proposals for disposition of air rights over property in the South Bend Central Development Area. (Northwest corner St. Joseph St. and Jefferson Blvd.) Mr. Inks opened the proposal that had arrived. The proposal was from Gameday Centers Southeastern, LLC. Ms. Greene noted that the proposal appeared to be complete, containing a Letter of Application, the Statement of Qualifications, Statement of Public Disclosure, the Non - collusion Affidavit, all properly executed, and also included a performance guarantee that was 10% of the offering price of $165,000. c. 7 PUBLIC HEARING ON RESOLUTION NO. 2192 COMMISSION APPROVED RESOLUTION NO. 2192 AMENDING THE SOUTH BEND CENTRAL DEVELOPMENT AREA DEVELOPMENT PLAN. South Bend Redevelopment Commission Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) B. Receipt of Proposals (1) continued... Ms. Laurent introduced Gary Spillers, development partner in Gameday Centers. Staff has been in communication with Mr. Spillers regarding this proposal. Mr. Spillers brought a PowerPoint presentation showing the kinds of similar projects his company has done in the Southeast. Mr. Spillers noted that he came up with the idea of Gameday Centers about five years ago. He lived in Auburn, Alabama, at the time. There was a need for temporary lodging for sports fans and alumnae of Auburn. He envisioned building high end condominiums, complete with a private lounge area and conference facility, fully furnished. He was attempting to get bank financing with a pro forma showing the condos selling at $200 /sft when no condominium in Auburn had ever sold over $80 /sft. The banks didn't believe he could sell at that price and wouldn't finance the project. So he pre -sold all 23 units for cash and built the project. Since then, he has built similar projects in Tuscaloosa, Alabama; Meridian, Mississippi; College Station, Texas and Tallahassee, Florida. Mr. Spillings described the quality of the condo projects as very upscale, having 9 -foot ceilings, crown molding, hardwood floors, themed throughout to the local university, with marble entry ways, and having retail on first floor. They are now building 133 units in the condos ranging in price from $129,900 to $750,000. 8 South Bend Redevelopment Commission Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) B. Receipt of Proposals (1) continued... Mr. Spillers noted they are currently in negotiations with Notre Dame to theme the proposed development with its logo. Mr. Spillers showed the Commission an architect's rendering of what the proposed project could look like in South Bend. Mr. King asked how many condos were proposed for the South Bend project. Mr. Spillers replied he thought the market could handle 125 -150. Mr. King expressed the Commission's excitement about the proposed project and recommended referring the proposal to the staff for evaluation and recommendation. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission acknowledged receipt of the proposal from Gameday Centers Southeast, LLC for the air rights over the northwest corner of Jefferson Blvd and St. Joseph Street in the South Bend Central Development Area. (2) Receipt of Proposals for disposition of property in the South Bend Central Development Area. (Hotel LaSalle) Mr. Inks opened the proposals for the Hotel LaSalle. The first proposal was from Scioto Development. It was a letter of interest only and did not contain a Statement of Qualifications and Financial Responsibility, j 9 COMMISSION ACKNOWLEDGED RECEIPT OF THE PROPOSAL FROM GAMEDAY CENTERS SOUTHEAST, LLC FOR THE AIR RIGHTS OVER THE NORTHWEST CORNER OF JEFFERSON BLVD AND ST. JOSEPH STREET IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) B. Receipt of Proposals (2) continued... nor a Statement of Public Disclosure, nor a Non - Collusion Affidavit, nor a Performance Guarantee. Legal counsel advised that Scioto's bid was non - conforming. The second was from Randall Lipps Investments of Elkhart, Indiana. It was a letter of interest only and did not contain a Statement of Qualifications and Financial Responsibility nor a Statement of Public Disclosure, nor a Non - Collusion Affidavit, nor a Performance Guarantee. Legal counsel advised that Randall Lipps Investment's bid was non - conforming. The third ro osal submitted on November p p 30 and revised on December 1, was from City Center Associates. It did not contain a Statement of Qualifications and Financial Responsibility, a Statement of Public Disclosure, a Non - Collusion Affidavit, nor a Performance Guarantee. Legal counsel advised that City Center Associate's bid was non - conforming. The fourth proposal was from Mansur Real Estate Services Inc. The proposal included a Letter of Application, the Statement of Qualifications and Financial Responsibility, the Statement of Public Disclosure and the Non - Collusion Affidavit all properly executed. However, it did not include the 10% Performance Guarantee as required. Therefore, legal counsel advised that Mansur Real Estate Services's bid was non- conforming. 10 IL South Bend Redevelopment Commission Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) B. Receipt of Proposals (2) continued... Based upon legal counsel's review. all of the bids submitted were non - conforming. Legal counsel advised that pursuant to IC 36 -7 -14- 22, the Commission may not award a bid at this time based upon its current offering. By statute, thirty days after the opening of these offers, the Commission may dispose of the property through a negotiated sale. Ms. Greene noted that the Hotel LaSalle is a much more complicated development project than the air rights over a parking garage. It is encouraging to see such a high level of interest in the two properties offered under the Commission's attempt to market more broadly. Ms. Laurent noted that most of the interest expressed in the Hotel LaSalle is for multi- family residential. That is just what we want to see in the downtown. Financing is going to be the most critical part of ever seeing a project happen with the Hotel LaSalle. That kind of financing does not come together over night, which is why the proposals came in non - conforming. We do have quality firms with the capability of completing this project and they have a passion for the project. We are very pleased with this result. Mr. Randall Lipps was present at the meeting. He has been in the apartment business for thirty years. His interest in doing the project started when his daughter said there was a waiting list for an apartment in downtown South Bend. He has developed 11 IL South Bend Redevelopment Commission Regular Meeting — December 2, 2005 14 6. NEW BUSINESS (CONT.) B. Receipt of Proposals (2) continued... five or six apartment complexes in Elkhart and sells them to fund further development. He has been through the hotel with an architect and a contractor. He sees a lot of potential, but was not ready to put a proposal together so quickly. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission acknowledged the receipt of the letters of interest from Scioto Development and Randall Lipps Investments and the non- conforming proposals from City Center Associates and Mansur Real Estate Services, Inc. C. Housing (1) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Program for property located at 737 S. Edison Ave. (Michelle Stenberg) Mr. Inks noted that the loan is in the amount of $2,500. The grant is in the amount of $2,365. Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried, the Commission approved the Loan and Grant in connection with the South Bend Home Improvement Program for property located at 737 S. Edison Ave. (Michelle Stenberg) 12 COMMISSION ACKNOWLEDGED THE RECEIPT OF THE LETTERS OF INTEREST FROM SCIOTO DEVELOPMENT AND RANDALL LIPPS INVESTMENTS AND THE NON - CONFORMING PROPOSALS FROM CITY CENTER ASSOCIATES AND MANSUR REAL ESTATE SERVICES, INC. COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 737 S. EDISON AVE. (MICHELLE STENBERG) South Bend Redevelopment Commission Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (1) Commission approval requested for Resolution No. 2193 related to acquisition of property in the South Bend Central Development Area. (Art Mosaic Tile) Mr. Schalliol noted that earlier in the Commission meeting the Commission approved Resolution No. 2192, amending the South Bend Central Development Area Development Plan to add the Art Mosaic Tile properties to the Acquisition List. Resolution No. 2193 authorizes the sending of a purchase offer for those properties. The average of two appraisals has established the purchase price at $86,500 for all four parcels. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2193 related to acquisition of property in the South Bend Central Development Area (Art Mosaic Tile) (2) Commission approval requested for proposal for professional services in the South Bend Central Development Area (Appraisal, Sycamore St. properties) Mr. Williams noted that at the November 18 Commission meeting, the Commission authorized title work to be performed on seven properties on Sycamore St. so that the properties could be made available to any developer interested in making a proposal for the Rink Riverside property. In order for the property to be available for development, the Commission must establish a price based on two disposition appraisals. Staff sought 13 COMMISSION APPROVED RESOLUTION NO. 2193 RELATED TO ACQUISITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (ART MOSAIC TILE) South Bend Redevelopment Commission Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (2) continued... proposals from four appraisers. Ralph Lauver proposed to perform the appraisals for $6,950; R.E. McCloskey & Assoc. proposed to perform the appraisals for $5,150; Jerome E. Michaels proposed to perform the appraisals for $6,750; and R.E. Pitts & Assoc. proposed to perform the appraisals for $7,400. All promised to finish the appraisals within 30 days. Staff recommends accepting the proposals from R.E. McCloskey and Jerome Michaels. Mr. King asked if the appraisals will be ready in time for the property to be offered in time to be of benefit to developers making a proposal for the Rink Riverside site. Mr. Williams responded that the proposals all indicated they could be completed within thirty days of notification to proceed, which will be done later today or on Monday, December 5. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved the request for proposals for professional services in the South Bend Central Development Area and accepted the proposals from R.E. McCloskey and Jerome Michaels for the scope of services and fee proposed. (3) Commission approval requested for Letter of Intent to lease Commission owned property in the South Bend Central Development Area. (117/119 S. Michigan St.) 14 COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSALS FROM R.E. MCCLOSKEY AND JEROME MICHAELS FOR THE SCOPE OF SERVICES AND FEE PROPOSED. South Bend Redevelopment Commission Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (3) continued... Mr. Williams noted that CB Richard Ellis has submitted a Letter of Intent on behalf of Traditions Photography for space at 117/119 S. Michigan St. They are proposing to lease said space for $10.50 /sft for a three -year, two -month term beginning January 6, 2006 with the first two months being at no cost. They are requiring very limited improvements to the space. Traditions Photography would complement the Michigan Street Retail Shops and bring a new type of business to the area. The Commission has raised some issues and has requested further information before reaching a conclusion. Staff requests that the Commission allow it to continue to work with Traditions Photography to negotiate the terms of a lease. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission authorized staff to continue to work with Traditions Photography to negotiate the terms of a lease for 117/119 S. Michigan St. (4) Commission authorization requested by the U.S. Marine Corps to use the former Osco's building for its Toys for Tots program from December 2, 2005 until January 14, 2006. Ms. Laurent noted that the local Marine Corps unit has requested temporary use of the former Osco's building as a headquarters for its Toys for Tots operations this holiday 15 COMMISSION AUTHORIZED STAFF TO CONTINUE TO WORK WITH TRADITIONS PHOTOGRAPHY TO NEGOTIATE THE TERMS OF A LEASE FOR 117/119 S. MICHIGAN ST. South Bend Redevelopment Commission Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (4) continued... season. The building will be used for storage and distribution of toys from December 2 until January 14. Corporal Stanley is aware of the parking constraints on Michigan Street and intends to be considerate of the parking needs of surrounding retailers. The Toys for Tots event will complement the overall downtown holiday experience that the City and Downtown South Bend, Inc. are trying to create. The Marine Corps will supply an indemnification agreement and liability insurance certificate. Staff recommends approval of the request. Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried, the Commission approved the request of the U.S. Marine Corps to use the former Oscos building for its Toys for Tots program from December 2, 2005 until January 14, 2006, subject to providing proof of insurance and indemnification of the Commission and City of South Bend. (5) Commission approval requested for Resolution No. 2200 approving a form of maintenance service agreement for the elevators in the Wayne Street Parking Garage and other related matters. Mr. Williams noted that Resolution No. 2200 approves a six -month maintenance agreement with Kone Elevators for service in the Wayne Street garage. The fee is $868 per month. The resolution also authorizes the Board of Public Works to negotiate an 16 COMMISSION APPROVED THE REQUEST OF THE U.S. MARINE CORPS TO USE THE FORMER OSCOS BUILDING FOR ITS TOYS FOR TOTS PROGRAM FROM DECEMBER 2, 2005 UNTIL JANUARY 14, 2006, SUBJECT TO PROVIDING PROOF OF INSURANCE AND INDEMNIFICATION OF THE COMMISSION AND CITY OF SOUTH BEND South Bend Redevelopment Commission Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (5) continued... extended maintenance agreement for these elevators and those in the Leighton garage by the time this six -month agreement expires. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2200 approving a form of maintenance service agreement for the elevators in the Wayne Street Parking Garage and other related matters. E. Sample -Ewing Development Area (1) Commission approval requested for Certificate of Completion for property located at 918 S. Michigan St. (Miami Auto Glass) Mr. Schalliol noted that on September 7, 2001 the Redevelopment Commission approved a Contract for Sale of Land with Miami Auto Glass for property at 918 S. Michigan Street. After a review of the project files and the site plan, staff has determined that all project requirements for the development have been completed. One of the issues that had prevented this project from receiving a Certificate of Completion earlier was the lack of improvements to the sidewalk and tree lawn area along Michigan Street. The streetscape work was recently completed by the South Gateway Assn. as part of its annual streetscape upgrade program. Since the work has been completed, the project can now be closed out. 17 COMMISSION APPROVED RESOLUTION NO. 2200 APPROVING A FORM OF MAINTENANCE SERVICE AGREEMENT FOR THE ELEVATORS IN THE WAYNE STREET PARKING GARAGE AND OTHER RELATED MATTERS. South Bend Redevelopment Commission Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) E. Sample -Ewing Development Area (1) continued... Staff recommends approval of the Certificate of Completion. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved the Certificate of Completion for property located at 918 S. Michigan St. (Miami Auto Glass) (2) Commission approval requested for proposal for professional services in the Sample -Ewing Development Area. (Demolition, 1303 S. Michigan St.) Mr. Schalliol noted that in July 2005 the Commission acquired several properties from Arthur Ford. The Fire Department has been using the house as a training center for the past several months, but hase determined the structure has met its training needs and they have no more need for it. Warner & Sons submitted a proposal to complete the demolition for a fee of $5,480. Staff recommends accepting the proposal from Warner & Sons for a not -to- exceed amount of $6,000. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved the request for proposal for professional services in the Sample -Ewing Development Area and accepted the proposal from Warner & Sons for the scope of services proposed at a fee not to exceed $6,000. 18 COMMISSION APPROVED THE CERTIFICATE OF COMPLETION FOR PROPERTY LOCATED AT 918 S. MICHIGAN ST. (MIAMI AUTO GLASS) COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM WARNER & SONS FOR THE SCOPE OF SERVICES PROPOSED AT A FEE NOT TO EXCEED $6,000 14 South Bend Redevelopment Commission Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) F. Airport Economic Development Area (1) Commission appointments to Blackthorn Owners Association Board of Directors. Mr. Witwer noted that at the November 17, 2005 Blackthorn Owners Association meeting, the Owners acknowledged the need for two appointments to the Board of Directors of the Blackthorn Owners Association. According the bylaws of the Owners Association, the Redevelopment Commission retains the right to appoint all three directors to the board as long as it owns 25% of the total land area in the corporate park. The board recommended appointing Jack Young to fill the remaining term of Coy Jankowski who no longer works for J.G. Sullivan. Also, the three -year term of William Panzica expires the end of the year. Bill is willing to serve another three -year term, so the board recommended reappointing William Panzica for another three -year term. Staff recommends appointing Jack Young and William Panzica to the Board of Directors of the Blackthorn Owners Association. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission appointed Jack Young to fill the remaining one year of the vacant position and reappointed William Panzica to another three -year term on the Board of Directors for the Blackthorn Owners Association.. G. South Bend Medical Services District H. West Washington - Chapin Development Area 19 South Bend Redevelopment Commission ' Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) I. South Side Development Area (1) Commission authorization requested to file for rezoning of property located at the northeast corner of Ireland Road and Fellows Street. Mr. Schalliol noted that on December 29, 2003 the Commission purchased a .27 acre parcel of land located on the northeast corner of Ireland Road and Fellows Street. The property is presently zoned SF -1 Residential. Staff would like the Commission's approval to begin a pre- disposition process, including authorizing a request to the City Council to rezone the property by its next filing deadline. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission authorized staff to petition for a rezoning of property located at the northeast corner of Ireland Road and Fellows Street. J. Northeast Neighborhood Development Area K. Other (1) Commission approval requested for Resolution No. 2199, designating and declaring the Douglas Road Economic Development Area, approving an Economic Development Plan, and establishing an allocation area for purposes of tax incremental financing. Ms. Greene noted that by approving Resolution No. 2199 the Commission will start the process of creating a second economic development area for the City of 20 COMMISSION AUTHORIZED STAFF TO PETITION FOR A REZONING OF PROPERTY LOCATED AT THE NORTHEAST CORNER OF IRELAND ROAD AND FELLOWS STREET South Bend Redevelopment Commission Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) K. Other (1) continued... South Bend. The first economic development area was the Airport Economic Development Area, created in 1991. The process for declaring an economic development area is first to establish the Commission's objective, then staff prepares maps and obtains data supporting the need for an economic development area. The development plan and the declaratory resolution are presented to the Commission for approval. Following Commission approval, the Area Plan Commission considers the declaratory resolution and the proposed development plan. Upon approval by Area Plan, the declaratory resolution and development plan are submitted to the Common Council for approval. Following Council action, the declaratory resolution and development plan come back to the Commission, either in its original form or as modified by the Area Plan Commission, for final action by the Commission. At that time, the Commission holds a public hearing and adopts a confirming resolution. The creation of an economic development area requires the Commission to make certain findings, including that the proposed plan for development of the designated area will promote significant opportunities for employment of the citizens, create a major new business enterprise, or retain or expand an existing business. Also, it requires a finding by the Commission that development in the economic development area cannot be achieved by regulatory 21 South Bend Redevelopment Commission Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) K. Other (1) continued... processes or by the ordinary operation of private enterprise, without resort to the powers allowed under the redevelopment act because of a lack of local public improvements and existence of improvements or conditions that lower the value of land below that of nearby land, multiple ownership of land, or other conditions. And, finally, the Commission must find that the public health and welfare will be benefited by the implementation of the development plan and that there is a public benefit and a public utility in implementing the proposed development of the area. Mr. Schalliol noted that contained within the development plan are several goals and objectives to achieving the economic development plan and other information specific to the points referenced above. The goals and objectives of the area proposed as the Douglas Road Development Area are: 1) to stimulate the development of currently vacant land to create developable sites; 2) to stimulate new private development and investment in the area; 3) to increase and diversify the city's tax base; 4) to create a significant number of job opportunities for the City of South Bend; 5) to improve the public infrastructure, specifically Douglas Road, to an upgraded status from State Rd. 23 to the Mishawaka 22 South Bend Redevelopment Commission Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) K. Other (1) continued... city limits; 6) to provide coordinated planning for a future growth area for the city. At this point in time there are three main obstacles preventing normal development through either regulatory processes or by the ordinary operation of private enterprise. Specifically: (1) the lack of necessary public improvements, such as the inadequate condition of Douglas Road for commercial purposes; (2) the lack of public utilities and other infrastructure related to the orderly growth and development of new commercial office and dense residential development; (3) lack of public utilities and other infrastructure improvement has created a condition that lowers the value of the land below that of nearby land, specifically that of land to the east and to the west that is properly serviced with commercial grade utilities and infrastructure; and (4) a lack of public funding to provide the necessary public utilities and infrastructure to allow for natural private sector growth to occur. Mr. Schalliol noted that the development area is proposed to be 33.9 acres in size. Ms. Greene noted that Resolution No. 2199 is the declaratory resolution which initially captures staff's report to the Commission together with the maps and supporting information related to the development area. The declaratory resolution provides a legal description of the area and idenifies the 23 South Bend Redevelopment Commission Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) K. Other (1) continued... obstacles to development of the area. The resolution also incorporates the following findings which Ms. Greene read into the record: (1) The Economic Development Plan for the Douglas Road Economic Development Area will promote significant opportunities for the gainful employment of the citizens of the City of South Bend; (2) The Economic Development Plan will attract new business enterprise to the City of South Bend; (3) The Economic Development Plan cannot be achieved without designating the area described in the fifth WHEREAS clause of Resolution No. 2199 as an economic development area in accordance with the provisions of the Redevelopment Act as set forth at Ind. Code 36 -7 -14 et seq. because of the lack of local public improvements, including improvements to Douglas Road, and local water and sewer service and the lack of development of major portions of said area; (4) The ordinary operation of private enterprise and regulatory processes in the Douglas Road Economic Development Area have failed to correct the conditions noted above; (5) The public health and welfare will be benefited by accomplishment of the Economic Development Plan for the Douglas Road Economic Development Area; (6) The accomplishment of the Economic Development Plan for the Douglas Road Economic Development Area will be of public utility and benefit because its implementation will result in the attraction of jobs, an increase in the property tax base and the improvement of the local transportation 24 South Bend Redevelopment Commission ' Regular Meeting — December 2, 2005 6. NEW BUSINESS (CONT.) K. Other (1) continued... network; (7) The Economic Development Plan for the Douglas Road Economic Development Area conforms to other development and redevelopment plans for the City of South Bend. Finally, declaratory Resolution No. 2199 establishes the entire area described in the resolution as an allocation area for purposes of tax increment financing and lays out the uses for which those tax increment finances may be used. All of those intended uses are specifically described and authorized by Indiana Code 36- 7- 14 -39. Mr. King left the meeting at 11:20 a.m. Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2199, designating and declaring the Douglas Road Economic Development Area, approving an Economic Development Plan, and establishing an allocation area for purposes of tax incremental financing. 7. PROGRESS REPORTS Mr. Inks reminded the Commission that on the 16th of December proposals are due for the Osco's building. The Rink Riverside site proposals will be coming in on January 20. Mr. Inks reported that the last of the houses related to the Bosch expansion have been demolished, the debris is gone, and the sites are graded. 25 Commission approved Resolution No. 2199, designating and declaring the Douglas Road Economic Development Area, approving an Economic Development Plan, and establishing an allocation area for purposes of tax incremental financing PROGRESS REPORTS South Bend Redevelopment Commission Regular Meeting — December 2, 2005 7. PROGRESS REPORTS (CONT.) Mr. Laurent reported that the Board of Public Works will take action on Monday to award the demolition contract for the Stamping Plant. He expects the contractor to mobilize on site the first week of January. They will have about 17 months to finish their work. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Friday, December 16, 2005 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Hojnacki made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 11:26 a.m. Dofiald E. Inks, Director Marcia I. Jones, Pr side W 26