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HomeMy WebLinkAbout11-18-05 Redevelopment Commission Minutes14 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING November 18, 2005 10:00 a.m. 227 West Jefferson Boulevard Presiding: Karl King, Vice - President South Bend, Indiana 1. ROLL CALL Members Present: Mr. Karl King, Vice President Mr. Hardie Blake, Jr. Mr. William Hojnacki Members Absent: Ms. Marcia Jones, President Mr. Greg Downes, Secretary Legal Counsel: Ms. Cheryl Greene, Esq. Redevelopment Staff: Mr. Don Inks, Director Mr. Bill Schalliol, Economic Development Specialist Mrs. Cheryl Phipps, Recording Secretary 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: Mr. Shawn Peterson, Legal Dept. Ms. Pam Paluszewski, Legal Dept. Mr. Randy Miller, Imagineering Ms. Autumn Aggeler, Grubb & Ellis /Cressy & Everett Ms. Lynn Fisher, Fisher - Gaston Real Estate Group Ms. Charlotte Sobel, South Bend Heritage Foundation Mr. Jeff Gibney, South Bend Heritage Foundation Mr. Pat Lynch, South Bend Heritage Foundation Mr. Christian Davey, Grubb & Ellis /Cressy & Everett Mr. Noah Davey, Grubb & Ellis /Cressy & Everett Mr. King noted a revised agenda for the November 18, 2005 meeting. The item added to the original agenda was item 6.C.(3) related to acquisition of the Huckins property. Mr. Hojnacki made a motion that the Revised Agenda be COMMISSION APPROVED THE REVISED accepted and approved. Mr. Blake seconded the motion and AGENDA DATED NOVEMBER 18, 2005 the Commission approved the Revised Agenda dated November 18, 2005. South Bend Redevelopment Commission Regular Meeting — November 18, 2005 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, November 4, 2005. The November 4, 2005 Minutes were not available for approval. 3. APPROVAL OF CLAIMS THE NOVEMBER 4, 2005 MINUTES WERE NOT AVAILABLE FOR APPROVAL Redevelopment Commission Claims submitted November 18, 2005 for approval. FUND 209 STUDEBAKER/OLIVER Ann E. Kolata $ Andrew Laurent Plews Shadley Rancher Schoff & Weiss FUND 305 SBCDA 2003 BOND Walker Parking Rieth Riley 324 AIRPORT AEDA Kenny Outdoor Solutions Code Enforcement RE Pitts & Associates Warner & Sons Wightman Petrie Environmental Inc Dennis Bamber Panzica Investments 414 SAMPLE -EWING GENERAL HS Altman CA Studios Laderer & Fischer 14 2 561.23 686.99 4,340.21 30.65 1,352.35 475,788.96 East Washington St Reconstruction 6,773.43 110.00 2,900.00 13,825.00 10,512.50 56,000.00 19,195.00 135.00 2,536.00 308.34 South Bend Redevelopment Commission Regular Meeting — November 18, 2005 3. APPROVAL OF CLAIMS (CONT.) 420 FUND TIF DISTRICT -SBCDA GENERAL GW Berkheimer Co. 33.00 CB Richard Ellis 442.83 Downtown South Bend Inc 37,621.00 Lehman & Lehman 1,101.74 Downtown South Bend Inc 44,596.00 424 FUND TIF SBCDA - BUILDING OPERATIONS CB Richard Ellis 164.37 619 BLACKTHORN Meadowbrook Golf Group, Inc. 8,000.00 $ 687,014.60 Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted November 18, 2005, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS A. Sample -Ewing Development Area (1) Commission approval requested for Resolution No. 2186 related to acquisition of property in the Sample -Ewing Development Area by eminent domain. (Huckins Tool & Die) Mr. Laurent noted that Resolution No. 2186 authorizes staff to send a Purchase Offer to J. 3 COMMISSION APPROVED THE CLAIMS SUBMITTED NOVEMBER 18, 2005, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Regular Meeting — November 18, 2005 5. OLD BUSINESS (CONT.) A. Sample -Ewing Development Area (1) continued... Robert Huckins for his property at 1010 Prairie Avenue, known as Huckins Tool & Die. The proposed offer is based upon the average of two appraisals which are offset against the cost of remediating certain environmental conditions existing on the property resulting in a net value for the property of $0. Staff recommends that the Commission approve a de minimis offer to the property owner and requests approval to send a purchase offer in the amount of $10. The owner is aware that this offer will be forthcoming. ILUpon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2186 related to acquisition of property in the Sample -Ewing Development Area by eminent domain. ( Huckins Tool & Die) B. 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 explained that on June 4, 2005, the Commission approved a proposal from GrubbjEllis /Cressy & Everett to purchase Lots 4 -6 for the sum of $378,000 and legal counsel began negotiating a Contract for Sale of Land with the developer with input from staff. During the course of the developer's pre - 4 COMMISSION APPROVED RESOLUTION NO. 2186 RELATED TO ACQUISITION OF PROPERTY IN THE SAMPLE -EWING DEVELOPMENT AREA BY EMINENT DOMAIN. (HUCKINs TOOL & DIE) South Bend Redevelopment Commission Regular Meeting — November 18, 2005 5. OLD BUSINESS (CONT.) B. Airport Economic Development Area (1) continued... development due diligence activities as the contract was being finalized, staff and developer mutually agreed that the topography of the site, among other factors, would require the developer to expend extraordinary costs in order to provide a comprehensive development site that would incorporate all three parcels into the project. Based upon these factors, the developer requested that the Commission reconsider the purchase price in recognition of the extraordinary site development costs. Upon review, staff determined that the IL $560,000 purchase price that was originally based upon a value established for the properties by appraisals conducted for the Commission in December 1997. In staff's discussions with developer during contract negotiations, developer requested that the original purchase price established in 1997 be offset against the extraordinary site development costs, amongst other factors. It should be noted that the developer did not withdraw its original proposal, but merely sought to renegotiate certain terms and conditions in the contract that, in the opinion of legal counsel and staff, warranted further consideration by the Commission. At its meeting of October 7, 2005, the Commission considered the developer's request. The Commission directed staff to obtain new appraisals that would capture current market conditions and factor in any South Bend Redevelopment Commission Regular Meeting — November 18, 2005 5. OLD BUSINESS (CONT.) B. Airport Economic Development Area (1) continued... site issues associated with comprehensive development of the three parcels. At the Commission's direction, staff subsequently obtained two independent appraisals conducted by MAI appraisers. The average of the two appraisals established a comprehensive price for Lots 4 -6 of $289,374. That price reflects current market conditions and recognizes site challenges that impair comprehensive development of the properties. Staff recommends that the Commission agree to accept a revised purchase price of $289,374 for the property based upon the 2005 appraisals, conditioned upon the following: Developer must purchase all three (3) parcels so that they may be developed as a comprehensive site. Developer shall execute the Contract for Sale of Land and proceed to closing within 90 days of the Commission's approval. Developer shall complete the development project within three (3) years of the closing date. Staff recommends the Commission approve the terms stated above and direct the staff to present that proposal to the development team, then return on December 2 with a final recommendation. L6 South Bend Redevelopment Commission Regular Meeting — November 18, 2005 5. OLD BUSINESS (CONT.) B. Airport Economic Development Area (1) continued... Ms. Greene noted that the developer has never withdrawn its original proposal. The Commission is being asked to authorize changes to the proposal it has previously approved based on recognition that the site has significant unforeseen development obstacles and to memorialize those changes into a development contract. Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission authorized staff to present the revised proposal terms to the developer. 6. NEW BUSINESS A. Tax Abatements (1) Commission approval requested for Resolution No. 2196 approving a real property tax deduction for property in the Airport Economic Development Area (Imagineering) Mr. Schaffer gave the staff report on the project. Imagineering Properties, L.L.C. is the real estate holding company for Imagineering Enterprises, Inc., a metal finishing service to the automotive and aerospace industries. Imagineering Properties proposes to build an 80,000 sq. ft. building on 8.67 acres of land on Nimtz Parkway. The estimated cost of the project is $4,500,000. This building will be the processing facility and offices of Imagineering Enterprises operations in South c, COMMISSION AUTHORIZED STAFF TO PRESENT THE REVISED PROPOSAL TERMS TO THE DEVELOPER. South Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) A. Tax Abatements (1) continued... Bend. They will also build an EcoPark next to the building. The EcoPark will include plantings and materials indigenous to Indiana forests, wetlands and prairies, complete with trails, recycling ponds and streams, benches, gazebos and lookout points. This will be an enhancement to the property. It is estimated that this project will create six (6) new, permanent, full -time jobs representing a new annual payroll of $190,000. The project will also maintain sixty -eight (68) existing permanent full -time jobs representing an annual payroll of $2,103,286. The petitioner has been granted two previous tax abatements: a 5 -yr personal property abatement in 1997 and a 10 -yr real property abatement in 2003. They are in compliance with all reporting requirements for those abatements. The property is properly zoned for the proposed project. The property is located in the Airport Economic Development Area, which is a Tax Increment Allocation Area; therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. The project meets the qualifications for a ten (10) year real property tax abatement under the tax abatement ordinance. Based on a constant tax rate, the estimated cost of the abatement is as follows: L South Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) A. Tax Abatements 14 B. L (1) continued... Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2196 approving a real property tax deduction for property in the Airport Economic Development Area (Imagineering) South Bend Central Development Area (1) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Survey, 722, 724 -726 S. Michigan St.) Mr. Schalliol explained items 6.B.(1) and (2) along with items 6.C.(1) and (2). At the October 7, 2005 meeting the Commission authorized sending a purchase offer for the Ford and Colley properties on South Michigan Street. The properties have since been acquired. The properties now need surveys and environmental assessments. Wightman Petrie has submitted proposals for all of the work, broken down as follows: COMMISSION APPROVED RESOLUTION NO. 2196 APPROVING A REAL PROPERTY TAX DEDUCTION FOR PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (IMAGINEERING) Estimated Taxes Over 10 Yrs Without Abatement $1,460,640 With 10 Yr Abatement $737,623 Estimated Cost of 10 Yr Abatement $723,017 Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2196 approving a real property tax deduction for property in the Airport Economic Development Area (Imagineering) South Bend Central Development Area (1) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Survey, 722, 724 -726 S. Michigan St.) Mr. Schalliol explained items 6.B.(1) and (2) along with items 6.C.(1) and (2). At the October 7, 2005 meeting the Commission authorized sending a purchase offer for the Ford and Colley properties on South Michigan Street. The properties have since been acquired. The properties now need surveys and environmental assessments. Wightman Petrie has submitted proposals for all of the work, broken down as follows: COMMISSION APPROVED RESOLUTION NO. 2196 APPROVING A REAL PROPERTY TAX DEDUCTION FOR PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (IMAGINEERING) 14 South Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... Ms. Greene noted that the proposals from Wightman Petrie use their standard language that mentions a late charge which should be deleted if the Commission approves the proposal. Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal for survey services in the South Bend Central Development Area and accepted the proposal from Wightman Petrie for the scope of services and fee proposed, subject to deletion of the reference to a late charge. (2) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Environmental assessment, 722, 724 -726 S. Michigan St.) Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal for environmental assessments in the South Bend Central Development Area and accepted the proposal from Wightman Petrie for the scope of services and fee proposed, subject to deletion of the reference to a late charge. 10 COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR SUEVEY SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM WIGHTMAN PETRIE FOR THE SCOPE OF SERVICES AND FEE PROPOSED, SUBJECT TO DELETION OF THE REFERENCE TO A LATE CHARGE. COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR ENVIRONMENTAL ASSESSMENTS IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM WIGHTMAN PETRIE FOR THE SCOPE OF SERVICES AND FEE PROPOSED, SUBJECT TO DELETION OF THE REFERENCE TO A LATE CHARGE. SBCDA SEDA Total Survey $3,800 $5,700 $9,500 Environ. $3,800 $1,900 $5,700 Ms. Greene noted that the proposals from Wightman Petrie use their standard language that mentions a late charge which should be deleted if the Commission approves the proposal. Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal for survey services in the South Bend Central Development Area and accepted the proposal from Wightman Petrie for the scope of services and fee proposed, subject to deletion of the reference to a late charge. (2) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Environmental assessment, 722, 724 -726 S. Michigan St.) Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal for environmental assessments in the South Bend Central Development Area and accepted the proposal from Wightman Petrie for the scope of services and fee proposed, subject to deletion of the reference to a late charge. 10 COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR SUEVEY SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM WIGHTMAN PETRIE FOR THE SCOPE OF SERVICES AND FEE PROPOSED, SUBJECT TO DELETION OF THE REFERENCE TO A LATE CHARGE. COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR ENVIRONMENTAL ASSESSMENTS IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM WIGHTMAN PETRIE FOR THE SCOPE OF SERVICES AND FEE PROPOSED, SUBJECT TO DELETION OF THE REFERENCE TO A LATE CHARGE. • . South Bend Redevelopment Commission %OW Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) Staff report on use of Commission owned property in the South Bend Central Development Area. (Sycamore St.) Mr. Williams noted that CB Richard Ellis, as leasing agent for the Commerce Center, has submitted a proposal for the temporary use of a vacant parking lot on Sycamore Street. The proposal is to utilize the property for parking associated with the Commerce Center. The Commerce Center has experienced increased occupancy and, as a result, the parking available at the Commerce Center has not been adequate. The proposed terms of use are $250 per month fee for the use of 18 parking spaces. The Commerce Center will carry liability insurance naming the City of South Bend and the Redevelopment Commission as coinsured and will be responsible for all maintenance and operation, including snow removal and monitoring. The use will be permitted on a month to month basis, as the Commission had previously expressed its desire to keep the land available for future comprehensive development. Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved the terms of the temporary is of the parking lot and authorized legal counsel to prepare aan agreement with the Commerce Center according to the terms presented at this meeting. 11 COMMISSION APPROVED THE TERMS OF THE PROPOSAL FOR THE TEMPORARY USE OF THE PARKING LOT ON SYCAMORE STREET AND AUTHORIZED LEGAL COUNSEL TO PREPARE AN AGREEMENT WITH THE COMMERCE CENTER ACCORDING TO THOSE TERMS. South Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Title work, seven East Bank parcels) Mr. Williams noted that the seven East Bank parcels are the Sycamore St. parcels the Commission wanted to make available for development in conjunction with the offering of the Rink Riverside site. Staff requested a proposal from Meridian Title for title search updates on the parcels. Meridian quoted a fee of $100 per parcel for a total of $700. Staff recommends accepting the proposal. Upon a motion by Mr. Hojnacki, seconded IL by Mr. Blake and unanimously carried, the Commission approved the request for proposal for professional services in the South Bend Central Development Area and accepted the proposal from Meridian Title for the scope of services and fee proposed. (5) Staff report on disposition of property in the South Bend Central Development Area. (Wayne St. Garage retail space) Mr. Williams noted that Brenda Markin of the State Cafe has submitted a letter of intent to lease the retail space in the Wayne Street garage for five years, four months. The lease rate proposed is as follows: Months 1 -4: $0 per square foot Months 5 -12: $5.00 per square foot Months 13 -24: $6.00 per square foot Months 25 -36: $7.00 per square foot Months 37 -48: $89.00 per square foot ►/ 12 COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM MERIDIAN TITLE FOR THE SCOPE OF SERVICES AND FEE PROPOSED. C; South Bend Redevelopment Commission Regular Meeting — November 18, 2005 Months 49 -64: $9.00 per square foot Although the rent starts out low, there is a decent escalation over the term. Staff recommends accepting the letter of intent with the stipulation that the lease include a stiff penalty for early termination. Ms. Lynn Fisher, representing Ms. Markin, distributed the financial projections for the operation. Mr. King asked who the lease would be guaranteed by. The letter of intent says the guarantee would be by the tenant's primary company. Would that be the company whose financial statements were distributed? Ms. Fisher responded that the parent company is State Cafe and Catering, whose financials were distributed. Brenda Markin has now incorporated as State Cafe and Catering. Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission accepted the Letter of Intent from the State Cafe to lease the retail space at 117/119 E. Wayne St and instructed staff to prepare the Lease. (6) Commission authorization requested to use Commission owned property in the downtown for holiday activities and events. (Various properties between December 3 and December 24). Ms. Laurent noted that Downtown South Bend has again requested the use of the Rockne Plaza for the very successful holiday events that have now become an annual tradition in the downtown. The ILI 13 COMMISSION ACCEPTED THE LETTER OF INTENT FROM THE STATE CAFE TO LEASE THE RETAIL SPACE AT 117/119 E. WAYNE ST AND INSTRUCTED STAFF TO PREPARE THE LEASE. South Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (6) continued... "gingerbread" Santa House will remain up from November 24 until January 2, 2006. DTSB has also asked to use the vacant Esprit Decor retail space for related children's activities and displays on the same schedule. Staff has reiterated that leasing the retail space is the City's top priority, and we are actively negotiating with a prospective tenant. The holiday displays would need to be quickly dismantled if a lease is forthcoming. Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved the use of Rockne Plaza and the Michigan Street retail space for holiday activities sponsored by Downtown South Bend from November 24 through January 2, 2006, conditioned on DTSB providing proof of insurance and indemnification to the City of South Bend and Redevelopment Commission. (7) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Environmental assessment, 201 South Chapin) Mr. Laurent noted that staff solicited a proposal from Wightman Petrie Environmental Inc. to conduct an ASTM Phase I environmental site assessment for Commission owned property at 201 S. Chapin which is leased to the Studebaker 14 COMMISSION APPROVED THE USE OF ROCKNE PLAZA AND THE MICHIGAN STREET RETAIL SPACE FOR HOLIDAY ACTIVITIES SPONSORED BY DOWNTOWN SOUTH BEND FROM NOVEMBER 24 THROUGH JANUARY 2, 2006, CONDITIONED ON DTSB PROVIDING PROOF OF INSURANCE AND INDEMNIFICATION TO THE CITY OF SOUTH BEND AND REDEVELOPMENT COMMISSION. ILSouth Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (7) continued... National Museum. The proposed fee is $1,500. The activity will satisfy an obligation set forth in the lease and management agreement between the City, the Commission and the Studebaker National Museum. Staff requests approval of the proposal. Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal for professional services in the South Bend Central Development Area and accepted the proposal from Wightman Petrie ILEnvironmental, Inc. for the scope of services and fee proposed. C. Sample -Ewing Development Area (1) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Survey, 1303,1315,1323-1325 S. Michigan St.) Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal for survey services in the Sample - Ewing Development Area and accepted the proposal from Wightman Petrie for the scope of services and fee proposed, subject to deletion of the reference to a late charge. 15 COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM WIGHTMAN PETRIE ENVIRONMENTAL, INC. FOR THE SCOPE OF SERVICES AND FEE PROPOSED COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR SURVEY SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM WIGHTMAN PETRIE FOR THE SCOPE OF SERVICES AND FEE PROPOSED, SUBJECT TO DELETION OF THE REFERENCE TO A LATE CHARGE IL South Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) C. Sample -Ewing Development Area (2) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Environmental assessment, 1303, 1315, 1323 -1325 S. Michigan St.) Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal for environmental assessments in the Sample -Ewing Development Area and accepted the proposal from Wightman Petrie for the scope of services and fee proposed, subject to deletion of the reference to a late charge. (3) Commission approval requested for Resolution No. 2197 rescinding Commission approval of a Contract for Purchase and Sale of Real Estate and approving and authorizing execution of Contract for Purchase and Sale of Real Estate containing certain revised terms and approving the execution of documents. Mr. Laurent explained that Resolution No. 2197 rescinds the agreement approved on August 19, 2005 between the Commission and the South Bend Public Transportation Corporation. The resolution also approves the new Contract for Sale of Real Estate and directs staff and legal counsel to execute any documents necessary due to the new agreement. The difference between the old and new agreements are: 1) instead of a $4M contribution to demolition that TRANSPO was to provide in exchange for the Stamping 16 COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR ENVIRONMENTAL ASSESSMENTS IN THE SAMPLE -EWING DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM WIGHTMAN PETRIE FOR THE SCOPE OF SERVICES AND FEE PROPOSED, SUBJECT TO DELETION OF THE REFERENCE TO A LATE CHARGE ILSouth Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) C. Sample -Ewing Development Area (3) continued... Plant property, there will now be a $1M down payment and a $3M purchase of value to be closed on after the demolition and infrastructure work is complete. Ms. Greene noted that the Contract for Sale of Real Estate as originally approved characterized the consideration for the transaction as a demolition contribution. In the course of obtaining Federal Transportation Authority approval over the transaction, it was determined that proceeding with the transaction under that structure would require adherence to the FTA procurement regulations which would extend the amount of time and money going into the overall project. So the decision was made to re- characterize the transaction as a straight real estate transaction with the consideration being given as a purchase price rather than a demolition contribution. There is no change in the actual amount of money being exchanged, nor is there any change in the development of the property; merely a re- characterization of the consideration being tendered in the transaction. Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2197 rescinding Commission approval of a Contract for Purchase and Sale of Real Estate and approving and authorizing execution of Contract for Purchase and Sale of Real Estate containing certain revised terms and approving the execution of documents. 17 COMMISSION APPROVED RESOLUTION NO. 2197 RESCINDING COMMISSION APPROVAL OF A CONTRACT FOR PURCHASE AND SALE OF REAL ESTATE AND APPROVING AND AUTHORIZING EXECUTION OF CONTRACT FOR PURCHASE AND SALE OF REAL ESTATE CONTAINING CERTAIN REVISED TERMS AND APPROVING THE EXECUTION OF DOCUMENTS ILSouth Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) Commission approval requested for Resolution No. 2198 approving the disposal of unfit property to Rum Village Neighborhood Association. (Shed located at 2610 Kenwood) Mr. Witwer noted that the Rum Village Neighborhood Association has requested that the Commission donate to them the shed located at 2610 Kenwood Street in the Bosch Project Area. The neighborhood association intends to move the shed to 1520 S. Kendall where it will be used to store equipment used to maintain the pocket park at that location. The neighborhood association will assume all costs, liabilities and responsibilities for removal of the shed. Mr. Peterson noted that in approving Resolution No. 2198 the Commission would be determining that the shed is unfit for redevelopment purposes, is no longer needed by the Commission, and would otherwise be demolished. Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2198 approving the disposal of unfit property to Rum Village Neighborhood Association. (Shed located at 2610 Kenwood) 18 COMMISSION APPROVED RESOLUTION NO. 2198 APPROVING THE DISPOSAL OF UNFIT PROPERTY TO RUM VILLAGE NEIGHBORHOOD ASSOCIATION. (SHED LOCATED AT 2610 KENWOOD) South Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (2) Commission approval requested for proposal for landscaping services in the Airport Economic Development Area. (Winterization of irrigation system) Mr. Witwer noted that staff solicited a proposal from Center for the Homeless Landscaping to winterize the irrigation system installed along the Bendix reroute. This is a one -time cost. Permanent maintenance will be performed by the Parks & Recreation Dept. starting in the spring of 2006. The proposed fee for the service is $165. Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal for landscaping services in the Airport Economic Development Area and accepted the proposal from Center for the Homeless Landscaping for the scope of services and fee proposed. 3) Commission approval requested for proposals for professional services in the Airport Economic Development Area. (Appraisals) Mr. Schalliol noted that staff solicited proposals for appraisal of three properties in the Airport Economic Development Area. The appraisals are needed to set the purchase offer price for property needed for a permanent right -of -way along the extension of Foundation Drive. Proposals were received from Jerome Michaels in the amount of $3,250 and from R.E. Pitts & 19 COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR LANDSCAPING SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM CENTER FOR THE HOMELESS LANDSCAPING FOR THE SCOPE OF SERVICES AND FEE PROPOSED. South Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (3) continued... Assoc. in the amount of $3,400. Two appraisals are required to set the amount of a purchase offer. Staff recommends accepting both proposals. Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposals for appraisal services in the Airport Economic Development Area and accepted the proposals from Jerome Michaels and R.E. Pitts Associates for the scope of services and fee proposed. E. South Bend Medical Services District F. West Washington - Chapin Development Area (1) Commission approval requested for proposal for professional services in the West Washington /Chapin Development Area. (Demolition, back portion of Natatorium) Mr. Schalliol noted that the City of South Bend has been working with representatives of the South Bend Heritage Foundation over the last year to move forward several projects in the West Washington / Chapin Development Area (WWCDA). In two specific cases, the Redevelopment Commission has purchased properties to further the development efforts in that area. He described the proposals from items 6.F.(1) through 6.F.(7) in the following table. 20 COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR APPRAISAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND ACCEPTED THE PROPOSALS FROM JEROME MICHAELS AND R.E. PITTS ASSOCIATES FOR THE SCOPE OF SERVICES AND FEE PROPOSED ce, South Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) F. West Washington /Chapin Development Area (1) continued... Staff recommends approval of all of the above listed amounts and contractors. The total amount for the above listed work is $199,023.39 which should be set as the Not To Exceed Amount for all of these projects. Ms. Greene noted that the Natatorium was 21 Contract 10% 10% Amount Contract SBHF Total Contingency Contingency Item 6F(1)1 Demo, Natatorium 28,514.00 2,851.40 3,136.54 3,4501.94 Ritschard Bros. Item 6F(2) Remove tanks, Natatorium 6,100.00 610.00 671.00 7,381.00 D &B Environmental Item 6F(3) Env assessment, Natatorium 575.00 57.50 63.25 695.75 Grauvogel & Assoc. Item 6F(4) Demo, Hansel parking lot 3,198.00 319.80 351.78 3,869.75 Ritschard Bros. Grauvogel & Assoc. 3,680.00 368.00 404.80 4,452.80 Item 6F(5) Demo, Oil Express 6,9443.00 6,944.30 7638.73 84,026.03 Warner & Sons Item 6F(6) Demo, Basic Machine 5,1117.00 5,111.70 5,622.87 61,851.57 Ritschard Bros. Item 6F(7) Env. Assessment, Basic 1,855.00 185.50 204.05 2,244.55 Machine Grauvogel & Assoc. Total 164,482.00 16,448.20 18,093.02 199,023.39 Staff recommends approval of all of the above listed amounts and contractors. The total amount for the above listed work is $199,023.39 which should be set as the Not To Exceed Amount for all of these projects. Ms. Greene noted that the Natatorium was 21 South Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) F. West Washington /Chapin Development Area (1) continued... donated to the City several years about. Legal counsel has filed a declaratory judgment action with the St. Joseph Circuit Court to quiet some title issues with respect to that property. There is a court hearing set for January 17, 2006. Pending the outcome of the hearing, legal counsel does not believe there is any risk to the Commission or to the City to proceed with the request before the today. Although the City is the owner of the property, the Commission is being asked to utilize TIF revenue for project work that includes partial demolition of the property. The Natatorium property is in deteriorating condition such that partial demolition is necessary to ensure the safety and welfare of the neighborhood. Mr. King asked if legal counsel if there would still be a public use for the Natatorium in future development. Ms. Greene responded that potential development being sought for the property through the assistance of South Bend Heritage Foundation is consistent with the public use doctrine. In addition, there is an Indiana Statute that appears to sunset reversionary rights after a specified period of time, which would apply to this property. However, that statute has not been tested at the appellate level, so there is no case law interpreting it. If the statute does not serve to extinguish any reversionary interests, then legal counsel is of the opinion that the intended future use of the property would be consistent with the restrictions originally expressed in the deed to the City. 22 South Bend Redevelopment Commission + Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) F. West Washington /Chapin Development Area (1) continued... Mr. King noted that all seven of these items involve compensation for project management to South Bend Heritage Foundation from TIF revenue in the West Washington Chapin Development Area. Ms. Sobel, South Bend Heritage Foundation, noted that SBHF has been working with the City for quite some time to get these improvements done. She thanked the staff and City of South Bend for their support. This will enable SBH to finish West Washington Street like they have just finished S. Chapin Street with the Studebaker Museum. The next year will be an extraordinary, exciting time to be able to take down these eyesores and plan for new development. Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal for demolition of the pool area in the Natatorium and accepted the proposal of Ritschard Bros. for a fee of $28,514 with a contract contingency of $2,851.40 and a management contract with South Bend Heritage Foundation in the amount of $3,136.54. (2) Commission approval requested for proposal to remove chlorine tanks in the West Washington /Chapin Development Area. (Natatorium) 23 COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR DEMOLITION OF THE POOL AREA IN THE NATATORIUM AND ACCEPTED THE PROPOSAL OF RITSCHARD BROS. FOR A FEE OF $28,514 WITH A CONTRACT CONTINGENCY OF $2,851.40 AND A MANAGEMENT CONTRACT WITH SOUTH BEND HERITAGE FOUNDATION IN THE AMOUNT OF $3,136.54. South Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) F. West Washington /Chapin Development Area (2) continued... Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission the request for proposal for removal of chlorine tanks in the Natatorium and accepted the proposal of D & B Environmental Services for a fee of $6,100 with a contract contingency of $610.00 and a management contract with South Bend Heritage Foundation in the amount of $671.00. (3) Commission approval requested for proposal for professional services in the West Washington /Chapin Development Area (Environmental assessment and testing, Natatorium) Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission the request for proposal for environmental assessment and testing of the Natatorium and accepted the proposal of Grauvogel & Assoc. for a fee of $575 with a contract contingency of $57.50 and a management contract with South Bend Heritage Foundation in the amount of $63.25. (4) Commission approval requested for proposal for professional services in the West Washington /Chapin Development Area. (Demolition, Hansel Center parking lot) Mr. Schalliol noted that the proposals were for removal of the parking lot, removal of a 24 COMMISSION THE REQUEST FOR PROPOSAL FOR REMOVAL OF CHLORINE TANKS IN THE NATATORIUM AND ACCEPTED THE PROPOSAL OF D & B ENVIRONMENTAL SERVICES FOR A FEE OF $6,100 WITH A CONTRACT CONTINGENCY OF $610.00 AND A MANAGEMENT CONTRACT WITH SOUTH BEND HERITAGE FOUNDATION IN THE AMOUNT OF $671.00. COMMISSION THE REQUEST FOR PROPOSAL FOR ENVIRONMENTAL ASSESSMENT AND TESTING OF THE NATATORIUM AND ACCEPTED THE PROPOSAL OF GRAUVOGEL & Assoc. FOR A FEE OF $575 WITH A CONTRACT CONTINGENCY OF $57.50 AND A MANAGEMENT CONTRACT WITH SOUTH BEND HERITAGE FOUNDATION IN THE AMOUNT OF $63.25. South Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) F. West Washington /Chapin Development Area (4) continued... dry well, and removal of UST. Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission the request for proposal for demolition of the Hansel Center parking lot, removal of a dry well and removal of UST at Hansel Center and accepted the proposal of Ritschard Bros. for a fee of $3,198 with a contract contingency of $319.80 and a management contract with South Bend Heritage Foundation in the amount of $351.78 as well as a proposal from Graugovel & Assoc. for 3,680 with a contract contingency of $368 and a management contract with South Bend Heritage Foundation in the amount of $404.80. (5) Commission approval requested for proposal for professional services in the West Washington /Chapin Development Area. (Demolition, former Oil Express on Washington St.) Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission the request for proposal for demolition of the former Oil Express and accepted the proposal of Warner & Sons for a fee of $69,443 with a contract contingency of $6,944.30 and a management contract with South Bend Heritage Foundation in the amount of $7,638.73. 25 COMMISSION THE REQUEST FOR PROPOSAL FOR DEMOLITION OF THE HANSEL CENTER PARKING LOT, REMOVAL OF A DRY WELL AND REMOVAL OF UST AT HANSEL CENTER AND ACCEPTED THE PROPOSAL OF RITSCHARD BROS. FOR A FEE OF $3,198 WITH A CONTRACT CONTINGENCY OF $319.80 AND A MANAGEMENT CONTRACT WITH SOUTH BEND HERITAGE FOUNDATION IN THE AMOUNT OF $351.78 AS WELL AS A PROPOSAL FROM GRAUGOVEL & Assoc. FOR 3,680 WITH A CONTRACT CONTINGENCY OF $368 AND A MANAGEMENT CONTRACT WITH SOUTH BEND HERITAGE FOUNDATION IN THE AMOUNT OF $404.80. COMMISSION THE REQUEST FOR PROPOSAL FOR DEMOLITION OF THE FORMER OIL EXPRESS AND ACCEPTED THE PROPOSAL OF WARNER & SONS FOR A FEE OF $69,443 WITH A CONTRACT CONTINGENCY OF $6,944.30 AND A MANAGEMENT CONTRACT WITH SOUTH BEND HERITAGE FOUNDATION IN THE AMOUNT OF $7,638.73. South Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) F. West Washington /Chapin Development Area (6) Commission approval requested for proposal for professional services in the West Washington /Chapin Development Area. (Demolition, former Basic Machine) Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission the request for proposal for demolition of the former Basic Machine facility and accepted the proposal of Ritschard Bros. for a fee of $51,117 with a contract contingency of $5,111.70 and a management contract with South Bend Heritage Foundation in the amount of $5,622.87. (7) Commission approval requested for proposal for professional services in the West Washington /Chapin Development Area. (Environmental assessment and testing, Basic Machine) Mr. Schalliol noted that the bid from Grauvogel & Assoc. was the middle price of three bids. But their price includes sampling and analysis. Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission the request for proposal for an environmental site review of the Basic Machine site and accepted the proposal of Grauvogel & Assoc. for a fee of $1,855 with a contract contingency of $185.50 and a management contract with South Bend Heritage Foundation in the amount of $204.05. 26 COMMISSION THE REQUEST FOR PROPOSAL FOR DEMOLITION OF THE FORMER BASIC MACHINE FACILITY AND ACCEPTED THE PROPOSAL OF RITSCHARD BROS. FOR A FEE OF $51,117 WITH A CONTRACT CONTINGENCY OF $5,111.70 AND A MANAGEMENT CONTRACT WITH SOUTH BEND HERITAGE FOUNDATION IN THE AMOUNT OF $5,622.87. COMMISSION THE REQUEST FOR PROPOSAL FOR AN ENVIRONMENTAL SITE REVIEW OF THE BASIC MACHINE SITE AND ACCEPTED THE PROPOSAL OF GRAUVOGEL & Assoc. FOR A FEE OF $1,855 WITH A CONTRACT CONTINGENCY OF $185.50 AND A MANAGEMENT CONTRACT WITH SOUTH BEND HERITAGE FOUNDATION IN THE AMOUNT OF $204.05. South Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) G. South Side Development Area (1) Commission approval requested for proposals for professional services in the South Side Development Area. (Appraisals) Mr. Schalliol noted that two appraisals are needed to establish the reuse value of two retention areas north of and adjacent to the Erskine Plaza. Proposals were submitted by Jerome Michaels in the amount of $3,000 and R.E. Pitts in the amount of $2,600. Staff recommends accepting both proposals. Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the -. Commission H. Northeast Neighborhood Development Area I. Other (1) Staff report on proposed Douglas Road Development Area. Mr. Schalliol noted that staff would like Commission authorization to begin the process of developing a plan to designate an economic development area within the City of South Bend as the Douglas Road Development Area ( "DRDA "). The DRDA would be located east of SR 23 along the north and south sides of Douglas Road. The proposed area would contain 33.9 acres of land within the city limits of the City of South Bend. Staff is seeking declaration of the area as an economic development which differs from a redevelopment area in that blighting conditions need not be present. 27 South Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) I. Other (1) continued... In order to declare an area to be an economic development area, the Commission must find that the following conditions exist: • a lack of local public improvements; • the existence of improvements or conditions that lower the value of the land below that of nearby land; and • multiple ownership of land; or other similar conditions The Commission must also establish a development plan for the area that accomplishes the following: • promotes significant opportunities for the gainful employment of its citizens; • attracts a major new business enterprise to the unit; • retains or expands a significant business enterprise existing in the boundaries of the unit; • demonstrates that the public health and welfare will be benefited by accomplishment of the plan; • will increase the economic well -being of the unit and the state; • serves to protect and increase property values in the unit and the state; • meets other purposes of this section and sections 2.5 and 43 of this chapter; Once the Commission has reviewed the draft plan and made all of its findings, the Redevelopment Commission must further 28 South Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) I. Other (1) continued... determine whether the accomplishment of the plan for the economic development area will be a public utility and benefit as measured by the following criteria: • the attraction or retention of permanent jobs; • an increase in the property tax base; • improved diversity of the economic base; or • other similar public benefits; and • the plan conforms to other development and redevelopment plans for the unit. ILIn conclusion, staff is requesting approval to begin the process of preparing all of the appropriate information to begin the designation process for the creation of the Douglas Road Development Area (DRDA). Ms. Greene noted that the Commission has created two new redevelopment areas in the last three years: the South Side Development Area and the Northeast Neighborhood Development Area. This is the first Economic Development Area that the Commission has created since the Airport Economic Development Area was created in 1991. At the next Commission meeting staff will present evidence to the Commission that supports all the above findings as well as a proposed development plan to accomplish those things. After hearing evidence, the Commission may take action to adopt the declaratory resolution and the development plan. The Commission's declaratory 29 South Bend Redevelopment Commission Regular Meeting — November 18, 2005 6. NEW BUSINESS (CONT.) I. Other (1) continued... resolution and the development plan will then go to the Area Plan Commission for its approval. After approval by the Area Plan Commission, the declaratory resolution and the development plan are submitted to the Common Council for approval. Finally, the Commission holds a public hearing and adopts confirming resolution based upon evidence and testimony presented at the public hearing. During this process, the original declaratory resolution and plan may be modified before matters are brought back to the Commission for final action by way of the confirmatory resolution. In addition, there are any persons who remonstrate against the proposed development area and plan, it does not preclude the Commission from moving forward pending judicial review of any such remonstrance. Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission authorized staff to prepare the necessary information to designate an economic development area to be known as the Douglas Road Development Area. 7. PROGRESS REPORTS Mr. Schalliol noted that several months ago the City started the process to rebuild E. Washington Street from Niles Avenue to Hill St. as part of a commitment to UL /EHL. As part of the project, not only did we do streetscape work, we did drainage work, new utilities, created a new parking lot. The street should be open the week of November 21. New light fixtures should go up 30 PROGRESS REPORTS A South Bend Redevelopment Commission Regular Meeting — November 18, 2005 7. PROGRESS REPORTS (CONT.) the week after Thanksgiving. Landscaping will be done in the spring. It's a fantastic upgrade from its former condition. Mr. Schalliol also reported on the United Drive project, between Sample Street and the railroad. In 2001 United Beverage approached the City about its need to expand, suggesting the City buy United Beverage to facilitate expansion of the Police Station or to find a creative way for United Beverage to remain at its location and expand. A casual suggestion was made to move United Drive. That alternative was acted on, and after four years is about complete. The United Beverage site will go from a four -acre site to a ten -acre site. United Beverage will begin its 50,000 sft expansion next spring. Mr. Laurent reported on the opening of the new Studebaker Museum on October 30. The building is an incredible improvement over their former location. The collection is about 50% new. In two weeks the Indiana Museum of History will be opening a new exhibit on the history of Studebaker and Oliver corporations in South Bend. Mr. Witwer noted that demolition has started on the homes to make way for the Bosch expansion. Ms. Laurent noted that there has been a good deal of response to our RFPs both locally and regionally. It's also encouraging that South Bend is now on the radar of developers outside of the area. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Friday, December 2, 2005 at 10:00 a.m. 31 South Bend Redevelopment Commission Regular Meeting — November 18, 2005 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Blake made a motion that the meeting be adjourned. Mr. Hojnacki seconded the motion and the meeting was adjourned at 10:54 a.m. Donal E. Inks, Direc r Lai 14 32 ADJOURNMENT (A4,6147 Marcia I. Jones, Pr sid t