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Home My WebLink About08-19-05 Redevelopment Commission Minutesr-M SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 19, 2005 10:00 a.m. Presiding: Marcia I. Jones, President 1. ROLL CALL Members Present: Members Absent: Legal Counsel: 227 West Jefferson Boulevard South Bend, Indiana Ms. Marcia Jones, President Mr. Karl King, Vice President Mr. Hardie Blake, Jr. Mr. William Hojnacki Mr. Greg Downes Ms. Cheryl Greene, Esq. Redevelopment Staff: Mr. Don Inks, Director Ms. Sharon Kendall, Executive Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. Robert Mathia, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Ms. Jennifer Laurent, Economic Development Specialist Mr. Nicholas Witwer, Economic Development Specialist Others Present: Ms. Pam Paluszewski, Legal Dept. Mr. William Purcell Mr. Robert Hunt Mr. Jeff Parrott, South Bend Tribune Ms. Autumn Aggeler Ms. Mary McLain, TRANSPO Ms. Shannan Schmidt, Downtown South Bend Mr. King noted that there is a revised agenda for the August 19, 2005 Meeting. Mr. King made a motion that the Revised Agenda be accepted and approved. Mr. Blake seconded the motion and the Commission approved the Revised Agenda dated August 19, 2005. COMMISSION APPROVED THE AUGUST 19, 2005. South Bend Redevelopment Commission Regular Meeting — August 19, 2005 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of July 15, 2005. Upon a motion by Mr. King, seconded by Mr. Blake and unanimously carried, the Commission approved the Minutes of the Regular Meeting of July 15, 2005. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF JULY 15, 2005. Redevelopment Commission Claims submitted August 19, 2005 for approval. FUND 305 SBCDA 2003 BOND City of South Bend $ 1,979.52 Tri County News 64.55 H. G. Christman Construction Co. 936,316.00 South Bend Tribune 81.42 Weaver Boos Consultants LLC 275.00 Wightman Petrie, Inc. 1,142.50 Danch, Hamer & Associates, Inc. 4,100.00 ADG 688.00 Ampco Parking Systems 9,730.84 DLZ 110.00 324 AIRPORT AEDA Bobcat Plus, Inc. 450.00 Ken Herceg & Associates, Inc. 16,911.40 Abonmarche Consultants of Indiana L.L.C. 24,256.00 Etna Supply Co. 435.64 Warner & Sons, Inc. 15,665.00 Inn @ St. Mary's Hotel 498.40 Meridian Title Corporation 150.00 SBD Reprographics 72.95 Tri County News 64.55 South Bend Tribune 81.42 Magic Carpet Turf Farms 309.00 L 2 Studebaker National Museum South Bend Redevelopment Commission Regular Meeting — August 19, 2005 3. APPROVAL OF CLAIMS (CONT.) 324 AIRPORT AEDA continued... Farm Plan 2,199.29 Aggregate Industries 5,201.54 Fitzmaurice Landscaping 910.00 Wightman Petrie Environmental, Inc. 2,352.50 Wightman Petrie Inc. 1,537.50 414 SAMPLE -EWING GENERAL Hull & Associates, Inc 1,830.70 CHF Landscape Service 2,461.50 420 FUND TIF DISTRICT -SBCDA GENERAL Ziolkowski Construction, Inc. 35,460.09 Lehman & Lehman 2,057.79 Wightman Petrie, Inc. 4,800.00 Downtown South Bend, Inc. 36,479.40 Meridian Title Corp 150.00 Fitzmaurice Landscaping 380.00 CB Richard Ellis 820.04 Conspect Services Inc. 531.80 Dynamic Mechanical Services, Inc. 155.00 Schindler Elevator Corporation 110.25 NIPSCO 8.24 City of South Bend 3,018.75 Business Districts, Inc. 1,442.50 SBC 62.34 Ampco Parking Systems 2,746.26 422 WASHINGTON CHF Landscape Service 105.00 Meridian Title Corporation 100.00 424 FUND TIF SBCDA - BUILDING OPERATIONS CB Richard Ellis 150.00 C G G South Bend Redevelopment Commission Regular Meeting — August 19, 2005 3. APPROVAL OF CLAIMS (CONT.) 428 AIRPORT 2003 BOND Brooks Construction 619 BLACKTHORN Meadowbrook Golf Groups, Inc. 166,546.82 Bendix Drive Relocation 16,000.00 $ 1,300,999.50 Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted August 19, 2005, and ordered checks to be released 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS n Ms. Jones asked that item 6. J. (1) be moved to the top of New Business. There was no objection and the item was so moved. J. Other (1) Commission approval requested for Resolution No. 2180 commending Robert W. Hunt for exemplary service to the South Bend Redevelopment Commission. Mr. Inks noted that former Commissioner Robert Hunt had served on the Commission for eleven years, resigning in July. Mr. Inks read into the record Resolution No. 2180. COMMISSION APPROVED THE CLAIMS SUBMITTED AUGUST 19, 2005, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) J. Other (1) continued... RESOLUTION NO. 2180 A RESOLUTION COMMENDING ROBERT W. HUNT FOR EXEMPLARY SER VICE TO THE SOUTH BEND REDEVELOPMENT COMMISSION WHEREAS, many people express concern about urban problems and their impact upon the community; and WHEREAS, some people demonstrate their concern by personal involvement in the process of seeking solutions; and co WHEREAS, a very few people are both willing and able to bring a degree of dedication that culminates in real, measurable progress, enriching the life of the community; and WHEREAS, Bob served as a member of the South Bend Redevelopment Commission since January 4, 1995; and WHEREAS, Bob served as President of the Commission from January 2, 1997 to May 7, 2004; and WHEREAS, Bob brought his business and leadership skills, experience, and dedication to community to the Commission; and WHEREAS, during his tenure on the Commission Bob had an active role in projects such as Robertson's Apartments, the L South Bend Redevelopment Commission Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) J. Other (1) continued... College Football Hall of Fame, St. Joseph County Juvenile Justice Center, the Boys and Girls Club, the new campus of Ivy Tech State College, the Leighton Plaza project and the renovation of the Morris Performing Arts Center and Palais Royale; the American Home Dreams project, Heritage Homes Southeast, and the Wenger Home Rehab; the expansion of Crowe Chizek, Press Ganey, Memorial Hospital, Environmental Health Labs, Bosch Corp; and the South Bend Chocolate Cafe; the business attraction of A.J. Wright; the expansion and relocation of Rose Fuel, Tech Data, Gibbs Wire, Deluxe Sheet Metal, Tire Rack, Studebaker Museum and The Vine restaurant; designation of the Sample -Ewing Development Area, the South Side Development Area, the Northeast Neighborhood Development Area; the Studebaker /Oliver Plow Works redevelopment project and the Oliver Industrial Park; the redevelopment of Scottsdale Mall with the Erskine Village project; and designation of the state's first Sales Tax Increment Finance District; and WHEREAS, Bob unselfishly gave of his time for the betterment of the community with no concern for individual honor or recognition, and has played an instrumental role in setting policy and negotiating through the details of many important projects; and WHEREAS, Bob has never forgotten the public that he serves and has been committed to the public process of decision making; and c, 6 South Bend Redevelopment Commission Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) J. Other (1) continued... NOW, THEREFORE, BE IT RESOLVED that the South Bend Redevelopment Commission hereby recognizes Robert W. Hunt for his exemplary commitment and distinguished service to the South Bend Redevelopment Commission and the City of South Bend, thanks him for the outstanding contributions he has made, and declares it will sincerely miss his diligent work and his presence at future meetings. ADOPTED at a meeting of the South Bend Redevelopment Commission held on August 19, 2005, at 1308 County -City Building, 227 W. Jefferson Boulevard, South Bend, Indiana 46601. SOUTH BEND REDEVELOPMENT COMMISSION Mr. Hunt thanked the Common Council for giving him an opportunity to serve on the Commission for these 11 years. He noted that it has been a pleasure to work with all the staff. Ms. Greene noted that in addition to the long list of projects Mr. Hunt has been involved in, he is also responsible for a recent change to the format of the Claims list. The list has been modified recently to reflect Mr. Hunt's persistent questions about all six - figure claims. G South Bend Redevelopment Commission Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) J. Other (1) continued... Upon a motion by Mr. King, seconded by Mr. Hunt and unanimously carried, the Commission approved Resolution No. 2180 commending Robert W. Hunt for exemplary service to the South Bend Redevelopment Commission. A. Tax Abatements (1) Commission approval requested for Resolution No. 2181 approving an application for tax deduction for residential property located at 920 and 922 Notre Dame Avenue in the Northeast Neighborhood Development Area. (William and Angie Purcell) Mr. Schaffer gave the staff report on the project. William and Angie Purcell will construct a new home at what is now 920 and 922 Notre Dame Avenue. The home will be approximately 2,200 square feet two story house with 3 bedrooms, two and a half baths, full basement, and an attached two car garage. The cost of the home will be around $300,000. The two lots will be merged into one with an address of 920 Notre Dame Avenue. The two tax key numbers will be merged into tax key number 18 -5106 -3721. Mr. Schaffer noted that the Purcells have not had any previous tax abatements. The property is properly zoned for the proposed project. The property is located in the Northeast Neighborhood Development Area; therefore, the petition for real property tax c; 8 COMMISSION APPROVED RESOLUTION NO. 2180 COMMENDING ROBERT W. HUNT FOR EXEMPLARY SERVICE TO THE SOUTH BEND REDEVELOPMENT COMMISSION. South Bend Redevelopment Commission �. Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) A. Tax Abatements (1) continued... abatement must first be approved by the South Bend Redevelopment Commission. Mr. Schaffer also noted that the project meets the qualifications for a five year residential tax abatement under the tax abatement ordinance. Upon a motion by Mr. King, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2181 approving an application for tax deduction for residential property located at 920 and 922 Notre Dame Avenue in the Northeast Neighborhood Development Area. (William and Angie Purcell) B. Housing (1) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Program for property located at 1410 Donald Street. (Valerie J. Simmons) Mr. Inks noted that the loan is in the amount of $4,700. The grant is for $7,500. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the loan and grant in connection with the South Bend Home Improvement Program for property located at 1410 Donald Street (Valerie J. Simmons) G COMMISSION APPROVED RESOLUTION NO. 2181 APPROVING AN APPLICATION FOR TAX DEDUCTION FOR RESIDENTIAL PROPERTY LOCATED AT 920 AND 922 NOTRE DAME AVENUE IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. (WILLIAM AND ANGIE PURCELL) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 1410 DONALD STREET (VALERIE J. SIMMONS) South Bend Redevelopment Commission Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) B. Housing (2) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Program for property located at 1824 Western Avenue. (Arlene Roseman) Mr. Inks noted that the loan is in the amount of $5,400. The grant is for $4,385. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the loan and grant in connection with the South Bend Home Improvement Program for property located at 1824 Western Avenue. (Arlene Roseman) (3) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Program for property located at 3939 Greenmont Drive. (Carmen Coffman) Mr. Inks noted that the loan is in the amount of $3,050. The grant is for $7,500. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the loan and grant in connection with the South Bend Home Improvement Program for property located at 3939 Greenmont Drive. (Carmen Coffinan) (4) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Program for property located at 601 S. Jackson Street. (Richard & Theresa Lesiuk) 10 COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 1824 WESTERN AVENUE. (ARLENE ROSEMAN) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 3939 GREENMONT DRIVE. (CARMEN COFFMAN) South Bend Redevelopment Commission Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) B. Housing (4) continued... Mr. Inks noted that the loan is in the amount of $1,550. The grant is for $7,500. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the loan and grant in connection with the South Bend Home Improvement Program for property located at 601 S. Jackson Street. (Richard & Theresa Lesiuk) (5) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Program for property located at 414 Walsh Street. (Joe E. Howard) Mr. Inks noted that the loan is in the amount of $5,950. The grant is for $7,500. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the loan and grant in connection with the South Bend Home Improvement Program for property located at 414 Walsh Street. (Joe E. Howard) C. South Bend Central Development Area (1) Commission approval requested for Resolution No. 2179 setting the Fair Market Rent for property located at 117 S. Michigan St. (former Esprit Decor space in the Michigan Street Shops) 11 COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 601 S. JACKSON STREET. (RICHARD & THERESA LESIUK) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 414 WALSH STREET. (JOE E. HOWARD) South Bend Redevelopment Commission Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... Ms. Laurent noted that Resolution No. 2179 sets the Fair Market Rent for 117 S. Michigan Street at $10.50 per square foot. That computes to $2,096.50 per month. Upon a motion by Mr. Hojnacki, seconded by Mr. King and unanimously carried, the Commission approved Resolution No. 2179 setting the Fair Market Rent for property located at 117 S. Michigan St. (former Esprit Decor space in the Michigan Street Shops) COMMISSION APPROVED RESOLUTION NO. 2179 SETTING THE FAIR MARKET RENT FOR PROPERTY LOCATED AT 117 S. MICHIGAN ST. (FORMER ESPRIT DECOR SPACE IN THE MICHIGAN STREET SHOPS) (2) Commission authorization requested to publish Notice of Intended Lease of Property with publication dates of August 26 and September 2, 2005 and receipt of bids on September 16, 2005 at 10:00 a.m. (117 S. Michigan St.) Upon a motion by Mr. King, seconded by COMMISSION AUTHORIZED PUBLICATION IN THE Mr. Hojnacki and unanimously carried, the SOUTH BEND TRIBUNE AND TRI- COUNTY NEWS Commission authorized publication in the OF THE NOTICE OF INTENDED LEASE OF South Bend Tribune and Tri- County News of PROPERTY FOR 117 S. MICHIGAN STREET WITH PUBLICATION DATES OF AUGUST 26 AND the Notice of Intended Lease of Property for SEPTEMBER 2, 2005 AND RECEIPT OF BIDS ON 117 S. Michigan Street with publication dates SEPTEMBER 16, 2005 AT 10:00 A.M. of August 26 and September 2, 2005 and receipt of bids on September 16, 2005 at 10:00 a.m. (3) Commission authorization requested to use Commission owned property in the South Bend Central Development Area for Art Beat on September 15, 2005. Ms. Laurent noted that the City of South Bend and Downtown South Bend, Inc. are 12 South Bend Redevelopment Commission Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (3) continued... again partnering with the organizers of Art Beat for this year's event which will be held Thursday, September 15 from 3:00 p.m. — 8:30 p.m. Art Beat is a free event held along the downtown sidewalks featuring the works of local visual, musical, performing and culinary artists. Artists' works are showcased in, outside of, or surrounding the downtown organizations and businesses involved in and/or supporting the cultural arts. DTSB has officially requested the Commission's permission to use properties owned by the Commission to host various exhibitions that evening. The Senor Kelly's (Michigan Street) parking lot will be the scene of the Main Stage and Cafe, which will be a secured and monitored area featuring entertainment as well as portable restrooms, food and drink (including alcoholic beverages). Jon Hunt Plaza (Michigan Street), Rockne Plaza (Michigan Street) and the Bryant Lot (Hill & Colfax) will be used for participant visual art displays, musical demonstrations, organizational booths and licenses food vendors. The former Osco's Building is not mentioned in the official request, but Laura Guy has requested that the Commission consider allowing use of the interior of the building for visual art displays and musical performance as well. Past events have been very successful and have not presented problems. The Art Beat organizers have implemented many new changes this year to improve traffic flow and 13 South Bend Redevelopment Commission Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (3) continued... logistics and to involve downtown merchants more. Staff recommends the Commission's favorable recommendation to DTSB's request for use of these properties for the event. Ms. Greene noted that the use of sidewalks and streets is under the control of the Board of Public Works and that separate approval is required from that body. Upon a motion by Mr. Hojnacki, seconded by Mr. King and unanimously carried, the Commission authorized use of Commission - owned properties in the South Bend Central Development Area by Downtown South Bend for Art Beat on September 15, 2005, subject to receipt of appropriate indemnifications from DTSB. (4) Commission approval requested for Commercial Lease in the South Bend Central Development Area. (Laura Lee's, 121 S. Michigan St.) Ms. Laurent noted that Laura Holloway of Laura Lee's has requested to exercise her option to renew her present lease for an additional two years at $10.50 per square foot. Her rent is current and she is a model tenant. Staff recommends approval. Ms. Greene noted that although the agenda references the document as a "Commercial Lease ", the document before the Commission is a First Amendment to Lease. The Lease C; 14 South Bend Redevelopment Commission Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (4) continued... was originally executed in 1999 and will expire at midnight August 31, 2005. The First Amendment to Lease presented to the Commission revises two provisions of the original Lease: (1) the Lease Term is extended by adding two additional years, ending August 31, 2007; and (2) the Base Rental Rate is increased to $10.50 per square foot. All other provisions of the original Lease are ratified and approved by the Commission's approval of the First Amendment to Lease. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the First Amendment to Lease for 121 S. Michigan Street in the South Bend Central Development Area. (Laura Lee's) D. Sample -Ewing Development Area (1) Commission approval requested for Contract for Purchase and Sale of Real Estate in the Sample -Ewing Development Area. (TRANSPO /Stamping Plant) Mr. Laurent noted that staff has recently had discussions with the South Bend Public Transportation Corporation (TRANSPO) regarding the future location of a new headquarters and maintenance facility for transit operations in the Studebaker /Oliver Redevelopment Project Area. The Contract for Purchase and Sale of Real Estate and 15 South Bend Redevelopment Commission Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (1) continued... Lease Agreement before the Commission are the culmination of those discussions. The documents outline the following scenario: 1. The Redevelopment Commission will donate the former South Bend Stamping Plant to TRANSPO. 2. TRANSPO will contribute $4,000,000 towards the demolition of structures and remediation of the site. 3. TRANSPO will construct a headquarters and maintenance facility on 12.04 acres of land on the former South Bend Stamping Plant site. 4. TRANSPO will lease to the Redevelopment Commission the 26.19 acres of land that will not be used for development of the headquarters and maintenance facility. The terms of the lease involve payments of $200,000 per year for 20 years. 5. The Redevelopment Commission reserves the right to sublease the property for industrial development. 6. The Redevelopment Commission will take ownership of the 26.19 acres of leased land at the completion of the lease term. The agreements will bring a significant portion of the funding that is required to demolish the former South Bend Stamping Plant. Also, the addition of the Transpo facility as the first development in the new 16 L �@j South Bend Redevelopment Commission Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (1) continued... industrial park will set a pattern and aesthetic standard for development in a manner similar to the Rose Brick & Materials facility in the Oliver Industrial Park. The public partnership that would be created by these agreements is advantageous to both the Commission and TRANSPO. TRANSPO will have a new home for its headquarters and maintenance facility while assisting the Redevelopment Commission in meeting the revitalization goals of the Studebaker /Oliver Redevelopment Strategy. Staff recommends approval of the Contract for Purchase and Sale of Real Estate and the Lease Agreement with the South Bend Public Transportation Corporation. Upon a motion by Mr. Hojnacki, seconded by Mr. King and unanimously carried, the Commission approved the Contract for Purchase and Sale of Real Estate in the Sample -Ewing Development Area. (TRANSPO /Stamping Plant) (2) Commission approval requested for Commercial Lease in the Sample -Ewing Development Area. (TRANSPO /Stamping Plant) COMMISSION APPROVED THE CONTRACT FOR PURCHASE AND SALE OF REAL ESTATE IN THE SAMPLE -EWING DEVELOPMENT AREA. (TRANSPO /STAMPING PLANT) Upon a motion by Mr. Hojnacki, seconded COMMISSION APPROVED THE COMMERCIAL by Mr. King and unanimously carried, the LEASE WITH TRANSPO FOR THE STAMPING Commission approved the Commercial Lease PLANT IN THE SAMPLE -EWING DEVELOPMENT AREA. with TRANSPO for the Stamping Plant in the Sample -Ewing Development Area. 17 South Bend Redevelopment Commission Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (3) Staff report on disposition of property in the Sample -Ewing Development Area. (Kay Industries). Mr. Laurent noted that his report covers this item as well as item 6. I. (1). L & S Investments, LLC submitted a proposal to acquire Lot #7 in the Oliver Industrial Park dated August 18, 2004. The proposal included a performance guarantee of $10,000. Outlined in the proposal was development of a 36,000 square foot industrial facility that would house three affiliated businesses, including Kay Equipment & Supply Co., Inc. of South Bend, Thermosteam Systems, Inc. of Diamond Bar, California, and Kay Industries, Inc. of Plymouth, Indiana. The proposal also requested that the Redevelopment Commission purchase the existing Kay Equipment & Supply property at 604 North Hill Street. The Commission accepted the proposal by L & S Investments and proceeded to add its property on Hill Street to the Northeast Neighborhood Development Area Acquisition List. A Purchase Offer of $192,000 was authorized by the Commission by Resolution No. 2149, dated March 4, 2005. Staff held negotiations with Mr. Steven Katz following his receipt of the Purchase Offer. It then began to appear that Mr. Katz was less and less inclined to proceed with the development proposal at the Oliver Industrial Park based on the performance of the 18 South Bend Redevelopment Commission Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (3) continued... affiliated businesses listed in the proposal. Staff received a letter from Mr. Katz dated August 10, 2005 that rejected the Redevelopment Commission Purchase Offer for the Hill Street property and also withdrew the proposal for acquisition of Lot #7 in the Oliver Industrial Park. Ms. Greene read Mr. Katz's letter into the record. August 10, 2005 Mr. Andy Laurent Division of Economic Development 227 W. Jefferson Boulevard Suite 1200 S South Bend, Indiana 46601 Dear Andy: After considerable thought and evaluation, we regret that we must reject the offer presented to Kay Equipment & Supply Co, Inc. to purchase our facilities located at 604 North Hill Street, South Bend, Indiana 46617. We thank you for the time and effort you put into creating this offer and working with us to explore the avenues of assistance that the City of South Bend has available for economic advancement. The economic environment we find ourselves in today does not make it feasible for us to relocate at this time; therefore, we must also L 19 South Bend Redevelopment Commission Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (3) continued... withdraw our offer to purchase and build in the Oliver Plow development. Again, thank you very much for the assistance you gave us in exploring these opportunities. Sincerely, Steven M. Katz CEO Mr. Laurent noted that staff recommends approving the letter from Mr. Katz dated August 10, 2005. This would withdraw the L & S Investments, LLC proposal for Lot #7 in the Oliver Industrial Park and would withdraw the Redevelopment Commission's Purchase Offer for the property owned by Kay Equipment & Supply Inc. at 604 -608 North Hill Street and 613 South Bend Avenue. Upon a motion by Mr. King, seconded by Mr. Hoinacki and unanimously carried, the Commission accepted the letter from Mr. Katz and authorized staff to respond to the letter indicating the Commission accepts the withdrawal of his proposal. E. Airport Economic Development Area (1) Commission authorization for Entry Upon Public Property located at 1743 Commerce Drive. (Advantage Puck) 20 COMMISSION ACCEPTED THE LETTER FROM MR. KATZ AND AUTHORIZED STAFF TO RESPOND TO THE LETTER INDICATING THE COMMISSION ACCEPTS THE WITHDRAWAL OF HIS PROPOSAL. South Bend Redevelopment Commission Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (1) continued... Ms. Greene noted that the property at 1743 Commerce Drive is owned by the Redevelopment Commission. It had been vacant when the Commission was approached by a business operating as "Advantage Puck" requesting to use the property on a short term basis. The Commission approved the short term use of the building by Advantage Puck; Advantage Puck has now vacated the property. KeyBank has subsequently taken over the assets of Advantage Puck and is in the process of auctioning off some of these assets. KeyBank has requested authorization to enter the property for the purpose of conducting the auction and has agreed to indemnify the Commission during the time it is using the building to conduct the auction and remove assets. Incidental to this matter, there is one piece of equipment located on the property that is not part of KeyBank's security interest, but had instead been leased by Advantage Puck from another entity by the name of Hokensen. Mr. Hokensen has asked for the opportunity to remove the leased equipment. Since KeyBank will be in possession of the property until August 20, Mr. Hokensen would not be permitted to enter the property until August 22 to remove his equipment. Mr. Hokensen would also indemnify the Commission during his time of access to the property. 21 South Bend Redevelopment Commission Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) COMMISSION AUTHORIZED KEYBANK TO USE THE PROPERTY AT 1743 COMMERCE DRIVE E. Airport Economic Development Area UNTIL AUGUST 20, 2005 TO HOLD AN AUCTION OF EQUIPMENT SUBJECT TO RECEIPT OF AN EXECUTED INDEMNIFICATION AGREEMENT IN A (1) continued... FORM ACCEPTABLE TO LEGAL COUNSEL. Upon a motion by Mr. King, seconded by Mr. Blake and unanimously carried, the Commission authorized KeyBank to use the property at 1743 Commerce Drive until August 20, 2005 to hold an auction of equipment subject to receipt of the proper indemnification in a form acceptable to legal counsel. Upon a motion by Mr. King, seconded by COMMISSION AUTHORIZED MR. HOKENSEN TO Mr. Blake and unanimously carried, the ENTER THE PROPERTY AT 1743 COMMERCE Commission authorized Mr. Hokensen to DRIVE ON AUGUST 22 2005 TO REMOVE enter the property at 1743 Commerce Drive EQUIPMENT, SUBJECT TO RECEIPT OF AN on August 22 2005 to remove equipment, EXECUTED INDEMNIFICATION AGREEMENT IN A FORM ACCEPTABLE TO LEGAL COUNSEL. subject to receipt of the proper Ic indemnification in a form acceptable to legal counsel. F. South Bend Medical Services District There was no business in the South Bend Medical THERE WAS NO BUSINESS IN THE SOUTH BEND Services District. MEDICAL SERVICES DISTRICT. G. West Washington - Chapin Development Area There was no business in the West Washington- THERE WAS NO BUSINESS IN THE WEST Chapin Development Area WASHINGTON- CHAPIN DEVELOPMENT AREA H. South Side Development Area There was no business in the South Side THERE WAS NO BUSINESS IN THE SOUTH SIDE Development Area. DEVELOPMENT AREA. L 22 South Bend Redevelopment Commission Regular Meeting — August 19, 2005 6. NEW BUSINESS (CONT.) I. Northeast Neighborhood Development Area (1) Staff report on acquisition of property in the Northeast Neighborhood Development Area. (Kay Industries) The staff report was given jointly with item 6. D. (3) and acted on there. 7. PROGRESS REPORTS Mr. Inks noted that there are a number of things going on in the community that Redevelopment is involved in. He pointed out the current demolition of the Rink Riverside building on the East Bank and the Hoosier Tank demolition in the Airport Economic Development Area. Staff has received demolition bids for the South Bend Stamping Plant; staff is continuing to negotiate a development agreement for the garage /office project at Jefferson and St. Joseph Streets; East Washington Street is under construction; almost every day there is another store opening at Erskine Village in the South Side Development Area; bid specifications are being prepared for the garage at Main and Colfax Streets and that repair will be out for bid soon; staff continues to analyze the need for road improvements to the Airport Economic Development Area; and, after informally offering the historic structure at 701 Pennsylvania, which the Commission did some renovation to, we are now listing that property with a local realtor. Ms. Greene noted that the Studebaker Museum project is nearing completion with an expected opening date in October. 23 REPORT PREVIOUSLY GIVEN PROGRESS REPORTS A A G South Bend Redevelopment Commission Regular Meeting — August 19, 2005 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is scheduled for Friday, September 2, 2005 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. King made a motion that the meeting be adjourned. Mr. Blake seconded the motion and the meeting was adjourned at 10:40 a.m. . � ",/. Ql" - D nald E. Inks, Dire for 24 NEXT COMMISSION MEETING ADJOURNMENT Marcia I. Jones, P ent