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HomeMy WebLinkAbout09-16-05 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING September 16, 2005 10:00 a.m. 227 West Jefferson Boulevard Presiding: Karl G. King, Vice - President South Bend, Indiana 1. ROLL CALL Members Present: Mr. Karl King, Vice President Mr. Hardie Blake, Jr. Mr. Greg Downes Mr. William Hojnacki Members Absent Ms. Marcia Jones, President Legal Counsel: Ms. Cheryl Greene, Esq. Redevelopment Staff: Mr. Bill Schalliol, Economic Development Specialist Mrs. Cheryl Phipps, Recording Secretary Mr. Robert Mathia, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Mr. Nicholas Witwer, Economic Development Specialist Others Present: Ms. Pam Paluszewski, Legal Dept. Ms. Jamie Loo, South Bend Tribune Mr. Christian Davey, Cressy & Everett Commercial Mr. Noah Davey, Cressy & Everett Commercial Tony Clark, Clark -O Mr. David Hatch, Habitat for Humanity Mr. Richard Dueringer, Habitat for Humanity Ms. Greene noted a revised agenda for the September 16, 2005 meeting. The items added to the original agenda were items 6.D.(5), a Release of Memorandum and Agreement Terms for Nephrology Assoc. II and item 6.G.(1) an Addendeum to Development Agreement with Anchor Acquisitions, Ltd. Mr. Downes made a motion that the Revised Agenda be COMMISSION APPROVED THE REVISED accepted and approved. Mr. Blake seconded the motion AGENDA DATED SEPTEMBER 16, 2005 and the Commission approved the Revised Agenda dated September 16, 2005. r� A c, South Bend Redevelopment Commission Regular Meeting — September 16, 2005 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, September 2, 2005. Upon a motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, September 2, 2005. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, SEPTEMBER 2, 2005. Redevelopment Commission Claims submitted Friday, September 16, 2005 for approval: Redevelopment Commission Claims submitted September 16, 2005 for ratification & approval. FUND 305 SBCDA 2003 BOND Kaser - Spraker Construction, Inc. $ H. G. Christman Construction Co. 324 AIRPORT AEDA Meridian Title Corp Walsh & Kelly Inc. Abonmarche Consultants of Indiana L.L.C. Fitzmaurice Landscaping 414 SAMPLE -EWING GENERAL CHF Landscape Service 34,225.87 300,418.00 Studebaker National Museum 50.00 80,979.24 6,850.28 1,528.00 2,697.50 420 FUND TIF DISTRICT - SBCDA GENERAL Lehman & Lehman 4,426.40 Fitzmaurice Landscaping 570.00 Rose Pest Solutions 85.00 CB Richard Ellis 206.18 422 WEST WASHINGTON CHF Landscape Service 160.00 G South Bend Redevelopment Commission Regular Meeting — September 16, 2005 3. APPROVAL OF CLAIMS (CONT.) 424 FUND TIF SBCDA - BUILDING OPERATIONS CB Richard Ellis 150.00 428 AIRPORT 2003 BOND Meridian Title Corporation 90,112.53 The Troyer Group, Inc. 209.75 619 BLACKTHORN Meadowbrook Golf Groups, Inc. 8,000.00 $ 530,668.75 Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted September 16, 2005, and ordered checks to be released 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Housing (1) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Program for property located at 754 S. Bendix Drive. (Emma P. Aguirre) Mr. Schalliol noted that the loan is in the amount of $3,700. The grant is $7,500. c, 3 COMMISSION APPROVED THE CLAIMS SUBMITTED SEPTEMBER 16, 2005, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting — September 16, 2005 IL 6. NEW BUSINESS (CONT.) A. Housing (1) continued... 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 754 S. Bendix Drive. (Emma P. Aguirre) (2) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Program for property located at 1017 S. 30t Street. (Dawn L. Martin) Mr. Schalliol noted that the loan is in the amount of $5,850. The grant is $5,711.75. 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 1017 S. 301h Street. (Dawn L. Martin) (3) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Program for property located at 1121 Blaine Avenue. (Scott Banacka) Mr. Schalliol noted that the loan amount is $3,400. The grant is $3,271.08. 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 c, 4 COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 754 S. BENDIx DRIVE. (EMMA P. AGUIRRE) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 1017 S. 30TH STREET. (DAWN L. MARTIN) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 1121 BLAINE AVENUE. (SCOTT BANACKA) G South Bend Redevelopment Commission Regular Meeting — September 16, 2005 6. NEW BUSINESS (CONT.) A. Housing (3) continued... Improvement Program for property located at 1121 Blaine Avenue. (Scott Banacka) B. South Bend Central Development Area (1) Commission approval requested for Commercial Lease in the South Bend Central Development Area. (Cort Furniture, 123 S. Michigan St.) Mr. Williams noted that Michael Connors, owner of Cort Furniture in the Michigan Street Shops, is seeking to exercise the option to renew the present lease for an additional five years at $9.50 per sq. ft. for the first year. Said rent would be increased in each succeeding year by $.25 per sq. ft. Mr. Williams noted that the lease rate requested is less than the option renewal rate of $10.40 per sq. ft. set forth in the current lease. Mr. King noted that Mr. Connors is not exercising the option to renew, but is asking to renegotiate the lease terms. Mr. King suggested the item be referred to staff for further discussion with the tenant and recommendation to the Commission. Upon a motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried the Commission referred Item 6.B.(1) to staff for further discussion with the tenant and recommendation to the Commission. 5 COMMISSION REFERRED ITEM 6.B.(I) TO STAFF FOR FURTHER DISCUSSION WITH THE TENANT AND RECOMMENDATION TO THE COMMISSION. South Bend Redevelopment Commission Regular Meeting — September 16, 2005 6. NEW BUSINESS (CONT.) C. Sample -Ewing Development Area (1) Staff report on disposition of property in the Sample -Ewing Development Area. (Sample Street) Mr. Schalliol noted that three years ago the Redevelopment Commission offered for sale property it owns at the corner of Sample and Carroll Streets. No bids were received at that time. After thirty days, the Commission is authorized by statute to sell the property at a negotiated price. The only interest in the property that has been expressed is from Habitat for Humanity. Mr. David Hatch, Director of Habitat, will make a presentation on Habitat's proposal for purchase and use of the property. Mr. Hatch stated his name as David Hatch of Habitat for Humanity, having offices at 402 E. South Street. Mr. Hatch expressed his appreciation for the partnership the City of South Bend has had with Habitat over the years, donating approximately 100 lots for Habitat's homes. Approximately 100 homes have been built on those vacant lots, increasing the tax base in the City of South Bend. Mr. Hatch noted that throughout Habitat's building efforts, its construction department has had no permanent home. It has been Habitat's practice to borrowspace for a year or two and then to move to different borrowed space. Similarly, Habitat's construction training program for families which is run under the name "Cornerstone" has had no permanent home, and has had to relocate to free space many times. c, South Bend Redevelopment Commission Regular Meeting — September 16, 2005 ILI 6. NEW BUSINESS (CONT.) B. Sample -Ewing Development Area (1) continued... Habitat has been looking at the site at Sample and Carroll Streets for several years and has been talking with Mr. Schalliol about the possibility of purchasing the site. Originally, it was Habitat's intent to build a substantial building on the site to house the construction department and the Cornerstone training program. However, while trying to work out some site issues with the adjacent property owner, Michiana Rebuilders has expressed interest in selling its property to Habitat as well. Since Michiana Rebuilder's property has a building suitable to house Habitat's functions, Habitat's three phased proposal is to put in some landscaped parking along Sample on the Commission's site in Phase I; Phase II would be to add another building for warehousing; and Phase III would eventually build an office building along the front of the Commission's site. Mr. Hatch acknowledged that as is the case with most not - for - profit agencies, raising money to accomplish their vision could be difficult. Habitat has recently opened a resale store on McKinley Avenue in Mishawaka to sell new and gently used construction materials to the general public. It would be Habitat's intent to open a second Re -Store in the Michiana Rebuilders building. Mr. Blake asked what Habitat's timeline would be for the three phases. Mr. Hatch responded that the purchase of Michiana Rebuilders would occur within two months. c, South Bend Redevelopment Commission Regular Meeting — September 16, 2005 6. NEW BUSINESS (CONT.) B. Sample -Ewing Development Area (1) continued... The parking and landscaping would be complete by the end of the year. Staff and volunteers would do any remodeling of the Michiana Rebuilders building as quickly as possible, but no schedule has been proposed. Mr. Downes asked how many employees and volunteers would be working at the site by the end of the year. Mr. Hatch responded that two employees would be working at the Re -Store at all times. The use of volunteers for construction/remodeling and the training of partner families would be episodic. Mr. King asked whether Habitat would be ILI able to keep everything inside the buildings, or would it anticipate some outside storage of machinery and supplies. Mr. Hatch responded that it is their intent to store everything inside. Mr. Downes asked whether Habitat's ability to complete Phase II and Phase III depend on future funding. Mr. Hatch responded that it would. There is an individual who has committed to find funding for Phase I. Mr. King thanked Mr. Hatch for the presentation and referred the proposal to staff for further review and recommendation. D. Airport Economic Development Area (1) Staff report on disposition of property in the Airport Economic Development Area. (Lots 4 -6 in U.S. 31 Industrial Park) L8 PROPOSAL REFERRED TO STAFF FOR FURTHER REVIEW AND RECOMMENDATION TO THE COMMISSION South Bend Redevelopment Commission Regular Meeting — September 16, 2005 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) continued... Mr. Schalliol noted that on June 4, 2004 the Commission approved a proposal from Grubb & Ellis /Cressy & Everett (GE /CE) for the sale of Lots 4 -6 in the U.S. 31 Industrial Park. After much discussion with staff during negotiations on the Contract for Sale of Land, the scope of the project materially changed. GE /CE has a revised proposal they would like to present to the Commission at this time. Christian Davey introduced himself and gave the address of his employer, Grubb & Ellis /Cressy & Everett as 3930 Edison Lakes Parkway, Mishawaka. Grubb & Ellis /Cressy & Everett have been working as developer for the site under the name of PCN Properties seeking to construct a development on Lots 4 -6 at Brick & Ameritech Dr. Phase I of the project would build a 12,000 sq. ft. building starting the end of March 2006 with completion in late August. Phase II could construct a 8- 12,000 sq. ft building targeted to open late fall 2007. The initial proposal included development of Lot 4 which required fill to be brought in as part of site preparation. Because the project contemplated retail use, and retail development requires visibility; the developer desires to construct this development a foot above the elevation of Carbonmill and Ameritech. That elevation would require bringing in more than 20,000 cubic yards of fill. GE /CE proposes a purchase price of $77,000 per acre for the L9 South Bend Redevelopment Commission Regular Meeting — September 16, 2005 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) continued... five acres as opposed to its previous offer to pay $113,000 an acre for the first lot and $70,000 per acre for Lots 5 and 6. Mr. Davey noted that there is a similar project north of WalMart on Portage Rd., called Clocktower Lane. The developer spent $87,500 per acre. The project before the Commission would have $36,000 in excessive costs per acre over and above the sale price of $113,000 per acre. The lease rate PCN would need to charge to be profitable would be higher than its major competitor, Clocktower Lane. Mr. Davey pointed out that during the negotiations over the Contract for Sale of Land, some of his potential tenants have signed with Clocktower Lane. Mr. Davey also pointed out that in order to accommodate the Commission's desire that all three parcels of land be sold at the same time, rather than GE /CE only purchasing Lot 4 with an option on Lots 5 and 6, GE /CE will incur additional costs carrying the property unused until Phase II. Mr. King asked for clarification as to whether GE /CE was asking the Commission to lower its selling price for the parcels? Mr. Davey responded that they are asking for a sale price of $188,000 for all five acres. That number was calculated by taking the price originally offered for the land and subtracting 10 South Bend Redevelopment Commission Regular Meeting — September 16, 2005 IL 6. NEW BUSINESS (CONY.) D. Airport Economic Development Area (1) continued... the $36,000 they consider excessive site work costs. Ms. Greene asked whether GE /CE has a letter of intent with any tenants for Phase I of the proposed project? Mr. Davey responded that GE /CE has a letter of intent with one tenant for 5,000 sq. ft. of leasehold space which would be enough to carry the project through Phase I. Item 6. D. (1) was referred to staff for review and recommendation. (2) Commission approval requested for proposal for demolition services in the Airport Economic Development Area. (Demolition 5845 Brick Rd.) Mr. Williams noted that staff sought proposals from four contractors for demolition of a house at 5845 Brick Road. The following three proposals were received: Ritschard Bros. $8,737 Bradberry Bros $9,905 Warner & Sons $6,500 Staff recommends accepting the offer from Warner & Sons. Upon a motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried the Commission approved the request for proposals for professional services in the Airport Economic Development Area and 11 ITEM 6. D. (1) WAS REFERRED TO STAFF FOR REVIEW AND RECOMMENDATION. COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM WARNER & SONS FOR THE SCOPE OF SERVICES AND FEE PROPOSED South Bend Redevelopment Commission Regular Meeting — September 16, 2005 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (2) continued... accepted the proposal from Warner & Sons for the scope of services and fee proposed. (3) Commission authorization requested for professional services in the Airport Economic Development Area. (Title work, 1743 Commerce Drive project) Mr. Witwer noted that staff requests permission to solicit proposals for title updates on six properties off of Sheridan and Voorde Dr. for the Voorde Dr. extension The estimated cost is $150 per title for a total cost not to exceed $1000. Upon a motion by Mr. Hojnacki, seconded COMMISSION AUTHORIZED THE REQUEST FOR by Mr. Downes and unanimously carried, the PROPOSALS FOR TITLE WORK IN THE AIRPORT Commission authorized the request for ECONOMIC DEVELOPMENT AREA. proposals for title work in the Airport Economic Development Area. (4) Commission authorization requested for use of 1743 Commerce Drive by the South Bend Regional Airport. Mr. Witwer explained that the Commission intends to exchange with the Airport Authority the property at 1743 Commerce Drive for seven Airport Authority owned properties to the east, several of which are needed for the Voorde Dr. extension. The Airport has immediate need for the property and would like permission to use it until the exchange occurs. 12 South Bend Redevelopment Commission Regular Meeting — September 16, 2005 IL 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (4) continued... Upon motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried, the Commission authorized use of 1743 Commerce Drive by the Airport Authority until the property is formally conveyed to them, contingent on receipt of proof of insurance and indemnification of the Commission. (5) Commission approval requested for Release of Memorandum and Agreement Terms. ( Nephrology Associates II) Mr. Witwer noted that Nephrology is selling its property and the company doing the title work needs to have a release confirming that all obligations of the original contract have been satisfied. A Certificate of Completion has been issued for this project and there are no outstanding obligations. This release reassures that fact. Ms. Greene noted that legal counsel has reviewed the document and negotiated it with the purchaser. She believes it does not impair any of the Commission's rights. Any release of obligations of the developer have already been released. However, this satisfies an out -of -town lender's requirements. COMMISSION AUTHORIZED USE OF 1743 COMMERCE DRIVE BY THE AIRPORT AUTHORITY UNTIL THE PROPERTY IS FORMALLY CONVEYED TO THEM, CONTINGENT ON RECEIPT OF PROOF OF INSURANCE AND INDEMNIFICATION OF THE COMMISSION. Upon a motion by Mr. Hojnacki, seconded COMMISSION APPROVED THE RELEASE OF by Mr. Downes and unanimously carried, the MEMORANDUM AND AGREEMENT TERMS. Commission approved the Release of (NEPHROLOGY ASSOCIATES II) Memorandum and Agreement Terms. ( Nephrology Associates II) 13 South Bend Redevelopment Commission Regular Meeting — September 16, 2005 6. NEW BUSINESSES (CONY.) E. South Bend Medical Services District F. West Washington - Chapin Development Area (1) Staff report on acquisition of property in the West Washington - Chapin Development Area. (428 W. LaSalle) Mr. Schalliol noted that the Commission approved Resolution No. 2182 on September 2, 2005 authorizing a purchase offer to be sent for 428 W. LaSalle Avenue in the amount of $39,000. Staff has received a counter offer in the amount of $40,000 which is consistent with the higher of the two appraisals. Based on the Commission's ownership of the adjacent property acquired from the same property owner and also based on the City and neighborhood's desire to remove this non - consistent land use from this largely residential neighborhood, staff recommends accepting the counter offer. Ms. Greene noted that acquisition of property is governed by I.C. 36- 7- 14 -19. Under that provision the Commission is required first to make an offer based on the average of two independent appraisals which the Commission has done. The Commission may not exceed that price unless it specifically authorizes the higher price or is ordered by the court to pay a higher price. If the Commission accepts the counter offer it would be authorizing the higher price in compliance with the statute. Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried, the Commission accepted the counter offer of $40,000 for property located at 428 W. 14 COMMISSION ACCEPTED THE COUNTER OFFER OF $40,000 FOR PROPERTY LOCATED AT 428 W. LASALLE AVE. IN THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting — September 16, 2005 6. NEW BUSINESS (CONT.) F. West Washington /Chapin Development Area (1) continued... LaSalle Ave. in the West Washington - Chapin Development Area. G. South Side Development Area (1) Commission approval requested for Addendum to Development Agreement with Anchor Acquisitions, Ltd. Ms. Greene noted that the Addendum changes some of the dates that were in the original Development Agreement to make them more consistent with the actual project schedule. The Addendum also expressly notes that the Commission has satisfied certain conditions contained in the original Development Agreement. Finally, the Addendum seeks to revise and replace Exhibit G to reflect a change in cost allocation. While the total project cost did not change from the original Exhibit G;, the allocation of those costs did change. Counsel has determined that the allocations are consistent with the authorized use of TIF and EDC funds. Therefore, the changes sought through the Addendum do not adversely impact the project or impose additional obligations on the Commission. Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried, the Commission approved the Addendum to Development Agreement with Anchor Acquisitions, Ltd. in the South Side Development Area. 15 COMMISSION APPROVED THE ADDENDUM TO DEVELOPMENT AGREEMENT WITH ANCHOR ACQUISITIONS, LTD. IN THE SOUTH SIDE DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting — September 16, 2005 6. NEW BUSINESS (CONT.) H. Northeast Neighborhood Development Area I. Other 7. PROGRESS REPORTS There was no report. PROGRESS REPORTS 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Friday, October 7, 2005 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. King made a motion that the meeting be adjourned. Mr. Hojnacki seconded the motion and the meeting was adjourned at 10:46 a.m. D nald E. Inks, Director Marcia I. Jones, Preside t 16