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HomeMy WebLinkAbout10-07-05 Redevelopment Commission MinutesA D SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING October 7, 2005 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Mr. Karl King, Vice President Mr. Greg Downes, Secretary Mr. William Hojnacki Members Absent: Mr. Hardie Blake, Jr. Legal Counsel: 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. Michelle Tomchak, Housing Development Corp. Mr. James Frick, South Gateway Business Association Ms. Jamie Loo, South Bend Tribune Mr. John Quickstad, Blackthorn Golf Club Mr. King noted a revised agenda for the October 7, 2005 meeting. The items added to the original agenda were items 6. C. (9) and 6. E. (7). Mr. King made a motion that the Revised Agenda be accepted and approved. Mr. Downes seconded the motion and the Commission approved the Revised Agenda dated October 7, 2005. COMMISSION APPROVED THE REVISED AGENDA DATED OCTOBER 7, 2005 7 14 South Bend Redevelopment Commission Regular Meeting — October 7, 2005 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, September 16, 2005. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, September 16, 2005. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, SEPTEMBER 16, 2005 Redevelopment Commission Claims submitted Error! Reference source not found. for approval. FUND 305 SBCDA 2003 BOND Wightman Petrie, Inc. Warner & Sons Danch, Hamer & Associates Walker Parking Consultants 324 AIRPORT AEDA Ken Herceg & Associates, Inc. Fitzmaurice Landscaping Wightman Petrie Environmental, Inc. 420 FUND TIF DISTRICT -SBCDA GENERAL Ampco Parking System South Bend Water Works Meridian Title Corporation Jerome E. Michaels, MAI CB Richard Ellis Acorn Landscaping, LLC South Bend Heritage Foundation Danco Kaser - Spraker Construction Fitzmaurice Landscaping 1,490.00 100,230.00 Rink Riverside demolition & removal 920.00 82,106.57 2,805.10 910.00 280.00 2,375.70 128.29 450.00 1,050.00 134.45 2,190.00 17,000.00 1,100.00 6,728.80 455.00 424 FUND TIF SBCDA - BUILDING OPERATIONS Ampco Parking Systems 9,970.99 428 FUND AIRPORT 2003 BOND Brooks Construction 0 152,557.01 Bendix Dr Relocation Improvements South Bend Redevelopment Commission Regular Meeting — October 7, 2005 � g 3. APPROVAL OF CLAIMS 428 FUND AIRPORT 2003 BOND Kankakee Valley Construction The Troyer Group, Inc. 101,578.76 Bendix Dr /Lincolnway 1,228.00 $ 485,688.67 Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted Error! Reference source not found., and ordered checks to be released 4. COMMUNICATIONS Mr. Inks noted that a letter was received on September 26, 2005 from Dawn Kendall who is leasing space in the Wayne Street Garage retail area. She indicated her intent to cure certain events related to the lease of that space. Her letter was in response to a September 22 letter from the Commission's counsel. Ms. Greene noted that legal counsel will continue to monitor the situation and follow up on the events of default. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Public Hearing (1) Public Hearing on Resolution No. 2185 amending the South Bend Central Development Area Development Plan. Mr. Schalliol noted that Resolution No. 2185 adds three parcels to the Acquisition List of the South Bend Central Development Area Development Plan. The properties are located IL at 117 South St, 720 S. Michigan St. COMMISSION APPROVED THE CLAIMS SUBMITTED ERROR! REFERENCE SOURCE NOT FOUND., AND ORDERED THE CHECKS TO BE RELEASED COMMUNICATION FROM DAWN KENDALL, TENANT IN THE WAYNE STREET GARAGE RETAIL SPACE. THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... and 724 -726 S. Michigan St. Mr. Schalliol noted that the properties are located in the South Bend Central Development Area, previously designated by the Commission as blighted. The Commission wishes to acquire the properties in order to improve the conditions in the area as a means to facilitate economic development and private investment in the area. The properties are located on main thoroughfares in the city. In their current condition they foster a negative impression of the city, contributing to a lack of growth in the area. The buildings are deteriorating and detract from the city's ability to encourage or promote investment in the area, such that other similarly deteriorating properties are not being improved. The current use of the properties has not been conducive to a positive business investment in the area. In the current condition, the properties are obsolete and not likely to be improved or adapted for reuse. Because of the condition of the properties the businesses operated there, the city has had to spend a disproportionate amount of public funds on crime prevention and other public services. The visibly deteriorating conditions detract seriously from the quality of residential life and the promotion of business development in the area. Mr. Schalliol noted that in order to accomplish improvement of the city corridors ILI and implement the development plan for the 4 South Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... South Bend Central Development Area it is necessary to acquire the properties so that they can be redeveloped compatible with the overall plan for the area and the city's comprehensive plan. Mr. Inks noted that the Public Hearing file is complete, containing: (1) A copy of the Notice of Hearing; (2) a copy of Resolution No. 2185; (3) affidavits from the South Bend Tribune and Tri- County News stating that the Notice of Hearing was published in those newspapers on September 16, 2005; (4) a IL statement from Mr. Schalliol that affected property owners and registered neighborhood associations were notified of the public hearing; and (5) no remonstrances were received related to Resolution No. 2185. However, there was one letter of support received from Mr. Jim Frick of the South Gateway Improvement Association. A copy of that letter is attached to these minutes. 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 ILproposed amendment, conforms to the 5 14 South Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... comprehensive plan for the City. Resolution No. 2185 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. Ms. Jones opened the Public Hearing on Resolution No. 2185 for whoever wished to speak. MR. JIM FRICK: You already have a letter from me. Of course we're ecstatic about this. We've been working seven years, spent thousands and thousands of our own dollars and a lot of time to get this to happen. So, we're very pleased with this. There was no one else who wished to speak regarding Resolution No. 2185. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (2) Commission approval requested for Resolution No. 2185. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2185 amending the South Bend Central Development Area Development Plan. :1 PUBLIC HEARING ON RESOLUTION NO. 2185. COMMISSION APPROVED RESOLUTION NO. 2185 AMENDING THE SOUTH BEND CENTRAL DEVELOPMENT AREA DEVELOPMENT PLAN. 14 South Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) B. Housing (1) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Program for property located at 743 S. Walnut Street. (John Maternowski) Mr. Inks noted that the loan is in the amount of $7,100. The grant is $7,500. Ms. Jones asked about an amount apparently omitted from one of the Bid Specifications. Ms. Tomchak indicated that was an oversight and the amount should be $10,300. 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 743 S. Walnut Street. (John Maternowski) (2) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Program for property located at 1217 E. Miner Street. (Carole Barnes) Mr. Inks noted that the loan is in the amount of $5,250. The grant is $4,092. 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 1217 E. Miner Street. (Carole Barnes) 7 COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 743 S. WALNUT STREET. (JOHN MATERNOWSKI) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 1217 E. MINER STREET. (CAROLE BARNES) South Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) B. Housing (3) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Program for property located at 437 S. Carlisle Street. (Kirk E. Wright) Mr. Inks noted that the loan is in the amount of $8,750. The grant is $8,610.56 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 437 S. Carlisle Street. (Kirk E. Wright) ILC. South Bend Central Development Area (1) Commission approval requested for Grant Agreement by and among the City of South Bend, Indiana, the South Bend Redevelopment Commission and Downtown South Bend, Inc. Ms. Laurent noted that the Grant Agreement governs funding for Downtown South Bend, Inc. The agreement covers the $525,000 budgeted for the 2005 fiscal year and represents a significant step toward increased accountability for the organization, which receives funding from both COIT ($250,000) and the SBCDA TIF ($275,000). TIF funds are typically used for projects that DTSB oversees and the COIT funds are used for operational expenses. Since the scope of activities and legal framework for the agreement has been reached, it will be the policy going forward that no expenditures 8 COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 437 S. CARLISLE STREET. (KIRK E. WRIGHT) South Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... will be reimbursed for any period not covered by an executed grant agreement Mr. King noted that this is the first Grant Agreement between DTSB and the Commission, although DTSB has received funding from the city for many years. He thinks committing the agreements to writing is a positive step and helps both sides understand what their commitments are. Mr. Downes and Mr. King both disclosed their memberships on the DTSB board. They are volunteers and receive no compensation ILfor their services. Upon a motion by Mr. Hojnacki, seconded by Mr. King and unanimously carried, the Commission approved the Grant Agreement by and among the City of South Bend, Indiana, the South Bend Redevelopment Commission and Downtown South Bend, Inc. (2) Commission approval requested for Resolution No. 2187 related to acquisition of property in the South Bend Central Development Area. (Colley properties) Mr. Schalliol noted that Resolution No. 2187 authorizes the sending of a purchase offer for the three properties added to the Acquisition List of the South Bend Central Development Area by Resolution No. 2185 earlier in the meeting. L COMMISSION APPROVED THE GRANT AGREEMENT BY AND AMONG THE CITY OF SOUTH BEND, INDIANA, THE SOUTH BEND REDEVELOPMENT COMMISSION AND DOWNTOWN SOUTH BEND, INC. South Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (2) continued... The offering price is $400,000, including the business assets and intellectual properties associated with the properties. The average of two independent appraisals of the property is $324,000. The value of the business and intellectual assets of the properties was determined to total approximately $76,000. The property atl 17 South Street is5,445 sft with a single story, 3,948 sft building. The property at 722 S. Michigan St. is10,385 sft with a single story, 2,274 sft building. The property at 724 -726 is 5,734 sft with a two - story, 4,850 sft building. Ms. Greene noted that the property owners are voluntarily selling their properties to the Commission. The Commission is meeting its legal requirements for property acquisition by following the procedures set forth in the Redevelopment Act, IC 36 -7 -14, referenced previously by adding these properties to the Commission's acquisition list. There have been extended discussions with the owners through their legal counsel and legal counsel has been able to draft a purchase agreement incorporating terms and conditions for the transactions. Ms. Greene noted that the purchase price includes the real property, the improvements, certain personal property, and certain intangible property rights. There is also language in the purchase agreement having to do with certain restrictive covenants that IL) have a value as well with respect to these 10 South Bend Redevelopment Commission Regular Meeting —October 7, 2005 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (2) continued... businesses. The Commission usually pays relocation costs; however, relocation costs have been waived in favor of the negotiated price, at considerable savings to the Commission. In addition, the purchase agreement contemplates dismissal of a law suit pending against the City. So, the $400,000 purchase price is not a premium price, but it does capture all those items previously referenced. It is a reasonable purchase price and is necessary to accomplish the transaction. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2187 related to acquisition of property in the South Bend Central Development Area. (Colley properties) (3) Commission approval requested to set aside funds for property maintenance and authorize staff to order services related to property maintenance in the South Bend Central Development Area. (Colley properties) Mr. Schalliol explained that, once the real estate transaction has closed, staff intends to ultimately demolish the properties purchased from the Colleys. However, demolition is not imminent; so the buildings will need to be secured and maintained. Staff is asking the Commission to approve a not -to- exceed budget of $5,000 to secure and maintain the three properties and authorize staff to order ILI 11 COMMISSION APPROVED RESOLUTION No. 2187 RELATED TO ACQUISITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (COLLEY PROPERTIES) South Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (3) continued... those services as needed. Any expenses greater than the $5,000 will be brought before the Commission for approval. Upon a motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried, the Commission approved setting aside funds for property maintenance and authorized staff to order services related to property maintenance in the South Bend Central Development Area. (Colley properties) Ms. Greene asked that Item 6.C.(9) be considered at this time because it also relates to the Colley properties. There was no objection and the item was moved up on the agenda. (9) Commission approval requested for Resolution No. 2188 approving the execution of a purchase agreement and other related documents associated with the purchase of property located at 117 West South Street, 720, 722, 724 and 726 South Michigan Street in the South Bend Central Development Area. Ms. Greene explained that the Purchase Agreement for the three Colley properties is substantially complete, but there are some materially insignificant language items that have not yet been finalized. Resolution No. 2188 contemplates the Commission's approval of the overall transaction as presented at the public meeting and described to, in the draft documents provided for the 12 COMMISSION APPROVED SETTING ASIDE FUNDS FOR PROPERTY MAINTENANCE AND AUTHORIZED STAFF TO ORDER SERVICES RELATED TO PROPERTY MAINTENANCE IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (COLLEY PROPERTIES) South Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (9) continued... Commission's review, those documents being necessary to affect the intent of the transaction as presented today. The resolution approves the transaction as presented and allows staff to finalize the necessary documents and present them to Commissioners for execution without waiting for the next Commission meeting. This, of course, presumes that there is no material change from terms and conditions of the transaction as presented today. The resolution expressly recognizes that time is of the essence and authorizes the above actions. Upon a motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried, the Commission approved Resolution No. 2188 approving the execution of a purchase agreement and other related documents associated with the purchase of property located at 117 West South Street, 720, 722, 724 and 726 South Michigan Street in the South Bend Central Development Area. (4) Commission approval requested for Bid Specifications and Design Considerations for property in the South Bend Central Development Area. (Air Rights, St. Joseph & Jefferson Garage) Ms. Laurent noted that the Bid Specifications and Design Considerations for the Air Rights over the St. Joseph & Jefferson St. Garage will be included in the Bid Packet for the site. The fair market price for the property 13 COMMISSION APPROVED RESOLUTION NO. 2188 APPROVING THE EXECUTION OF A PURCHASE AGREEMENT AND OTHER RELATED DOCUMENTS ASSOCIATED WITH THE PURCHASE OF PROPERTY LOCATED AT 117 WEST SOUTH STREET, 720, 722, 724 AND 726 SOUTH MICHIGAN STREET IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. ILSouth Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (4) continued... was set at $162,500 by Resolution No. 2173, adopted June 17, 2005. The two appraisers have verified that the fair market value has not changed in light of the revised bid specifications. Staff has been instructed by the Commission to pursue all potential quality development opportunities that will complement the development of a parking structure on this site. The goal in doing so is to encourage added investment, more employment and population density in the downtown core and IL an appropriately scaled and designed building that would take advantage of the views and the location between the St. Joseph River and the vitality and commerce on Michigan Street. The intended uses outlined in the Bid Specifications would include office, multi - family residential, hotel or entertainment uses. Mr. King commended staff for the quality of the bid packet. In the past bid packets were legal documents that would not catch the attention of anyone who did not already know about the availability of the property. The new format is a much better marketing piece. He recognized the months of hard work by staff to put it together and hoped that it would be the model for future bid packets. Also, he hoped the document would answer the questions of many in the community about what is being done to market the two properties. The document is a very positive step forward. 14 South Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area 4. continued... Upon a motion by Mr. King, seconded by COMMISSION APPROVED THE BID Mr. Downes and unanimously carried, the SPECIFICATIONS AND DESIGN CONSIDERATIONS Commission approved the Bid Specifications FOR PROPERTY IN THE SOUTH BEND CENTRAL and Design Considerations for property in DEVELOPMENT AREA. (AIR RIGHTS, ST. JOSEPH & JEFFERSON GARAGE) the South Bend Central Development Area. (Air Rights, St. Joseph & Jefferson Garage) (5) Commission authorization requested to publish Notice of Disposition of Property with publication dates of October 14, 2005 and October 21, 2005 and Receipt of Bids at 10:00 a.m. on December 2, 2005. (Air IL Rights, St. Joseph & Jefferson Garage) Upon a motion by Mr. King, seconded by COMMISSION AUTHORIZED PUBLICATION OF THE Mr. Downes and unanimously carried, the NOTICE OF DISPOSITION OF PROPERTY WITH Commission authorized publication of the PUBLICATION DATES OF OCTOBER 14, 2005 AND Notice of Disposition of Property with OCTOBER 21, 2005 AND RECEIPT OF BIDS AT 10:00 A.M. ON DECEMBER 2, 2005. (AIR RIGHTS, publication dates of October 14, 2005 and ST. JOSEPH & JEFFERSON GARAGE) October 21, 2005 and Receipt of Bids at 10:00 a.m. on December 2, 2005. (Air Rights, St. Joseph &Jefferson Garage) (6) Commission approval requested for Bid Specifications and Design Considerations for property in the South Bend Central Development Area. (Hotel LaSalle) Ms. Laurent noted that the fair market price for this property was set at $405,000 by Resolution No. 2123 on January 21, 2005. Staff has made a concentrated effort to develop the set of guidelines and expectations for future development of this property, including speaking with historic 15 South Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (6) continued... preservation experts in the community. The intended uses the Commission seeks include adaptive reuse of the building for multi- family residential or to return the building to its former use as a destination hotel. Upon a motion by Mr. Hojnacki, seconded by COMMISSION APPROVED THE BID Mr. Downes and unanimously carried, the SPECIFICATIONS AND DESIGN CONSIDERATIONS Commission approved the Bid Specifications FOR PROPERTY IN THE SOUTH BEND CENTRAL and Design Considerations for property in the DEVELOPMENT AREA. (HOTEL LASALLE) South Bend Central Development Area. (Hotel LaSalle) (7) Commission authorization requested to publish Notice of Disposition of Property with publication dates of October 14, 2005 and October 21, 2005 and Receipt of Bids at 10:00 a.m. on December 2, 2005. (Hotel LaSalle) Upon a motion by Mr. Hojnacki, seconded COMMISSION AUTHORIZED PUBLICATION OF THE by Mr. Downes and unanimously carried, the NOTICE OF DISPOSITION OF PROPERTY WITH Commission authorized publication of the PUBLICATION DATES OF OCTOBER 14, 2005 AND Notice of Disposition of Property with OCTOBER 21, 2005 AND RECEIPT OF BIDS AT 10:00 A.M. ON DECEMBER 2, 2005. (HOTEL publication dates of October 14, 2005 and LASALLE) October 21, 2005 and Receipt of Bids at 10:00 a.m. on December 2, 2005. (Hotel LaSalle) (8) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Rink Riverside site) Ms. Laurent explained that she has two proposals for disposition appraisals of the Rink Riverside site, 209 E. Coflax Ave. 16 G 14 South Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area 0 8. continued... Staff is working to prepare a disposition bid packet for this site and updated appraisals are needed. These appraisers did the acquisition appraisals on the site and were asked to update the appraisals now that the site has been cleared. The proposals are as follows: Staff recommends accepting both proposals. Upon a motion by Mr. Hojnacki, seconded by Mr. King and unanimously carried, the Commission approved the request for proposals for professional services in the South Bend Central Development Area and accepted the proposal from Rick Pitts & Associates and from Jerome Michaels for the scope of services and fee proposed. 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. Mr. Inks asked that Item 6.D.(l) be tabled. 17 COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM RICK PITTS & ASSOCIATES AND FROM JEROME MICHAELS FOR THE SCOPE OF SERVICES AND FEE PROPOSED. Fee Completion Rick Pitts & $1,000 15 days Assoc. Jerome NTE $1,850 21 days Michaels Staff recommends accepting both proposals. Upon a motion by Mr. Hojnacki, seconded by Mr. King and unanimously carried, the Commission approved the request for proposals for professional services in the South Bend Central Development Area and accepted the proposal from Rick Pitts & Associates and from Jerome Michaels for the scope of services and fee proposed. 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. Mr. Inks asked that Item 6.D.(l) be tabled. 17 COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM RICK PITTS & ASSOCIATES AND FROM JEROME MICHAELS FOR THE SCOPE OF SERVICES AND FEE PROPOSED. South Bend Redevelopment Commission Regular Meeting —October 7, 2005 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (1) continued... Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission tabled Item 6.D.(1) until the October 21, 2005 meeting. (2) Staff report on disposition of property in the Sample -Ewing Development Area. (Sample Street at Fellows) Mr. Schalliol noted that David Hatch with Habitat for Humanity made a presentation at the September 16 meeting regarding Habitat's proposed purchase and development of the site at the southwest 6 corner of Sample and Fellows Streets. The Commission received its initial proposal from Habitat on May 12, 2004 to investigate the possibility of constructing a training facility and warehouse on the site. After over a year of working with staff on thatproposal, a new proposal was submitted on August 6, 2005. The revised proposal was submitted to confirm continued interest in the site and to revise the proposal concept for the site. The proposal now is for Habitat to acquire privately the Michiana Custom Rebuilders property adjacent to the Commission owned property. The Michiana Custom Rebuilders property has a building suitable for Habitat's immediate warehouse and training needs. The Commission property would be used to develop a parking lot and, eventually, an office building. Staff recommends the Commission accept the proposal. The 18 COMMISSION TABLED ITEM 6.D.(1) UNTIL THE OCTOBER 21, 2005 MEETING. South Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (2) continued... project as proposed will serve as a complement to similar developments in this corridor. Additionally, because of the lack of interest in this site, it is staffs recommendation that selling the property at this point would benefit the Commission by reducing maintenance and property management costs. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission accepted the proposal from Habitat for Humanity of St. Joseph County for property located on the southwest corner of Sample and Fellows Streets. E. Airport Economic Development Area (1) Commission approval requested for proposal for Replacement Irrigation Parts for Blackthorn Golf Course in the Airport Economic Development Area. Mr. Witwer noted that Blackthorn Golf Club solicited quotes for replacement parts for its irrigation system. Blackthorn staff will do the installation. The satellite controller that is needed replaces three other satellite controllers, two of which are non operational. Kenny Outdoor Solutions was the low bidder with a quote of $3,093.03 for the parts and $3,771.60 for the satellite controller. Purchase of these parts was included in the 2005 budget approved by the Commission. 19 COMMISSION ACCEPTED THE PROPOSAL FROM HABITAT FOR HUMANITY OF ST. JOSEPH COUNTY FOR PROPERTY LOCATED ON THE SOUTHWEST CORNER OF SAMPLE AND FELLOWS STREETS. South Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (1) continued... Upon a motion by Mr. Hojnacki, seconded COMMISSION APPROVED THE PROPOSAL OF by Mr. Downes and unanimously carried, the KENNY OUTDOOR SOLUTIONS FOR Commission approved the proposal of Kenny REPLACEMENT IRRIGATION PARTS FOR Outdoor Solutions for Replacement Irrigation BLACKTHORN GOLF COURSE. Parts for Blackthorn Golf Course. (2) Commission approval requested for proposal for Lot Cleanup in the Airport Economic Development Area. (East of Bosch, west of Bendix Rd.) Mr. Witwer noted that the Commission owned properties west of Bendix and east of IL Bosch were purchased for the expansion of the Bosch campus. The properties are in deteriorating condition and several structures have been broken into numerous times, even after the structures were secured. Grass and other vegetation have grown out of control and trash and debris are rapidly piling up at several locations. r� Center for the Homeless Landscaping has given a quote of $5,514 to undertake removal of trash and debris, boarding and securing of structures, and mowing all grass and overgrown brush on the project site. Staff recommends accepting the proposal. Ms. Greene noted that she has observed the site and agrees that it is an eyesore and recommends that the Commission proceed in order to avoid potential liability issues 20 South Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (2) continued... Upon a motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the request for proposals for lot cleanup and mowing 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 proposal for Environmental Remediation and Phase I Environmental Assessment in the Airport Economic Development Area. (2626 Linden St.) Mr. Witwer noted that Wightman Petrie has submitted a proposal to provide environmental remediation and a Phase I Environmental Assessment at the 2626 Linden Street site related to the demolition of the auto garage. The remediation is needed to remove an above ground fuel or oil tank which is holding approximately 125 gallons of fluid and to remove approximately 45 tons of permeated soil. The cost of this service is $5,240. In addition, staff has determined that with a growing vandalism and trash dumping problem in the area, rather than trying to secure the structure, it should be demolished. Wightman Petrie would conduct a Phase I Environmental Assessment on the garage property at a cost of $1,500. Staff recommends accepting the proposals from Wightman Petrie Environmental. 21 COMMISSION THE REQUEST FOR PROPOSALS FOR LOT CLEANING AND MOWING 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 — October 7, 2005 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (3) continued... Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried, the Commission approved the request for proposals for environmental services in the Airport Economic Development Area and accepted the proposal from Wightman Petrie Environmental for the scope of services and fee proposed. (4) Commission approval requested for proposal for demolition of garage in the Airport Economic Development Area. (2626 Linden St.) Mr. Witwer explained that this garage is among the properties we own east of Bosch that is in need of cleanup. Staff has concluded that this garage would be too costly and extremely difficult to properly secure, and that it should be demolished as soon as possible. Staff has received three bids for demolition, the lowest being from Warner and Sons for $13,825.11. Staff recommends accepting the offer. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved the request for proposals for demolition services in the Airport Economic Development Area and accepted the proposal from Warner and Sons for the scope of services and fee proposed. 22 COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR ENVIRONMENTAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM WIGHTMAN PETRIE ENVIRONMENTAL FOR THE SCOPE OF SERVICES AND FEE PROPOSED. COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR DEMOLITION SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM WARNER AND SONS FOR THE SCOPE OF SERVICES AND FEE PROPOSED. South Bend Redevelopment Commission Regular Meetin g — October 7, 2005 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (5) Commission approval requested for proposal for a Phase I Environmental Assessment in the Airport Economic Development Area. (Bosch Project Area) Mr. Witwer noted that Wightman Petrie has submitted a proposal to conduct Phase I Environmental Assessments on all the Commission -owned properties in the Bosch project area. The fee for the Phase I Environmental Assessments is $3,900. Asbestos inspections will be done at a cost of $2,900. Staff recommends accepting the proposals. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved the request for proposals for Phase I Environmental Assessments and asbestos inspections in the Airport Economic Development Area and accepted the proposal from Wightman Petrie Environmental for the scope of services and fee proposed. Mr. Inks asked that Item 6.E.(7) be moved up on the agenda and considered at this time. There was no objection and the item was so moved. (7) Commission approval requested to set aside funds for property demolition and authorize staff to order services related to property demolition in the Airport Economic Development Area. (Bosch project) Mr. Witwer explained that the ten Commission -owned properties in the Bosch 23 COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR PHASE I ENVIRONMENTAL ASSESSMENTS AND ASBESTOS INSPECTIONS IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM WIGHTMAN PETRIE ENVIRONMENTAL FOR THE SCOPE OF SERVICES AND FEE PROPOSED South Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (7) continued... project area are becoming increasingly difficult to secure and maintain. Bosch has promised to reimburse the city for demolition costs up to $65,000. Staff requests the Commission authorize staff to seek quotes and select the lowest bidder in an amount not to exceed $75,000. The low bid will then be brought to the Commission for ratification. Ms. Greene noted that this request is consistent with the obligations the Commission has with respect to the formal agreements in place related to the Bosch expansion and retention project. ILI Upon a motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the request for proposals for demolition services in the Airport Economic Development Area and authorized staff to select the lowest bidder in an amount not to exceed $75,000. (6) Staff report on disposition of property in the Airport Economic Development Area. (U.S. 31 Industrial Park, Lots 4 -6) Ms. Greene noted that the Commission previously approved a proposal from Grubb & Ellis, Cressy & Everett (GECE) for Lots 4- 6 in the U.S. 31 Industrial Park. Christian Davey (GECE) made a presentation at the September 16 Commission meeting requesting to change their proposal for the property. Because that proposal was materially different from what had been previously proposed, the Commission did not 24 COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR DEMOLITION SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND AUTHORIZED STAFF TO SELECT THE LOWEST BIDDER IN AN AMOUNT NOT TO EXCEED $75,000 South Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (6) continued... take action at the September 16 meeting, but asked staff to review the revised proposal. Part of the issue GECE raised to the Commission was the value of the property as related to the geotechnical characteristics of the land. GECE wanted the Commission to offset some of the costs of development because of the geotechnical challenge to the site. Ms. Greene noted that the property was previously appraised and offered for sale through the public bid process. However, a ' significant amount of time has passed since the appraisals were done. GECE contends that the land is no longer valued at the price which the Commission hase offered it due to the geotechnical difficulties. The Commission must determine whether it wants to proceed with GECE's original proposal or their new proposal. Since the change requested by GECE is a material change, the Commission may need to re -bid the land. Staff has consulted with legal counsel, and after reviewing the facts and circumstances related to the property and the Commission's legal obligations concerning property disposition, staff is suggesting that the Commission authorize new appraisals for a determination of a fair market value for the property. Mr. King noted that the original appraisals on this property were performed nearly ten years ago and may not have fully taken into account the geotechnical conditions described by GECE at the September 16 meeting. In order 25 South Bend Redevelopment Commission Regular Meeting — October 7, 2005 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (6) continued... for the Commission to make a well informed decision on how to move forward, it needs the additional appraisals. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission authorized staff to incur the expenses necessary to secure two MAI appraisals on the subject property. F. South Bend Medical Services District G. West Washington - Chapin Development Area ILH. South Side Development Area I. Northeast Neighborhood Development Area J. Other 7. PROGRESS REPORTS Mr. Schalliol gave an update on development in the South Side Development Area. He noted that the ribbon cutting for the new Kohls department store at Erskine Village was October 6. Though open for a week, the official opening is to be the weekend of October 8. Several of the tenants in the inline section are expected to open before Thanksgiving, including DSW Shoe Warehouse, Bed Bath and Beyond, Petsmart. At Erskine Commons they have started putting dirt back into the hole they dug. They anticipate the pad site for Wa1Mart will be delivered in a couple of weeks; for Lowes by the end of the year. 26 COMMISSION AUTHORIZED STAFF TO INCUR THE EXPENSES NECESSARY TO SECURE TWO MAI APPRAISALS ON THE SUBJECT PROPERTY PROGRESS REPORTS L 14 C+. South Bend Redevelopment Commission Regular Meeting — October 7, 2005 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is scheduled for Friday, October 21, 2005 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Downes made a motion that the meeting be adjourned. Mr. King seconded the motion and the meeting was adjourned at 10:54 a.m. VM4'11 L;o_ (2A Z, Donald E. Inks, Dire or 27 NEXT COMMISSION MEETING ADJOURNMENT Marcia I. Jones, Presi October 5, 2005 South Bend Redevelopment Commission Office of the Department of Redevelopment 1200 County -City Building 227 West Jefferson Boulevard South Bend, Indiana 46601 Re: Acquisition of three properties owned by John & Patricia Colley (117 South St., 720 S. Michigan St., 724 -726 S. Michigan St.) Dear Redevelopment Commission Members, These three properties have had a detrimental effect on the South Gateway Corridor since the early 1970's. We alize the decision to purchase these properties was not an easy decision. We support Mayor Luecke's decision o so. We, encourage you to acquire these properties as soon as possible. We believe the acquisition & lViolition of these properties will help erase the perception that South Michigan Street is sleazy and dangerous. Thank you very much from the members of the South Gateway Association! Sincerely, T Frick, President uth Gateway Association Cc Mayor Steve Luecke Sharon Kendall Bill Schalliol SGA Board