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Home My WebLink About01-07-05 Redevelopment Commission MinutesC7 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING January 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. Robert W. Hunt, Secretary Mr. Hardie Blake, Jr. Mr. Greg Downes Legal Counsel: Ms. Cheryl Greene, Esq. Redevelopment Staff: Mr. Don Inks, Director Mr. Bill Schalliol, Economic Development Specialist Ms. Pamela Morris, Recording Secretary Mr. Tim Williams, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Ms. Jennifer Hughes, Economic Development Specialist Others Present: 2. APPROVAL OF MINUTES Ms. Pam Paluszewski, Legal Dept. A. Commission approval of the Minutes of the Regular Meeting of December 17, 2004. Upon a motion by Mr. King, seconded by Mr. Hunt and unanimously carried, the Commission approved the Minutes of the Regular Meeting of December 17, 2004. B. Commission approval of the Minutes of the Annual Organizational Meeting of January 3, 2005. Upon a motion by Mr. King, seconded by Mr. Hunt and unanimously carried, the Commission approved the Minutes of the Annual Organizational Meeting of January 3, 2005. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF DECEMBER 17, 2004. COMMISSION APPROVED THE MINUTES OF THE ANNUAL ORGANIZATIONAL MEETING OF JANUARY 3, 2005. South Bend Redevelopment Commission Regular Meeting — January 7, 2005 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted January 7, 2005 for approval. 414 SAMPLE -EWING GENERAL Plews Shadley Racher & Braun Baker General Maintenance 420 FUND TIF DISTRICT -SBCDA GENERAL Jerome E. Michaels South Bend Water Works AEP City of South Bend SBC Hill's True Value Hardware Architecture Design Group CB Richard Ellis South Bend Schindler Elevator Corporation R.E. McCloskey & Associates Ampco System Parking R.E. Pitts & Associates ConSpecT Services, Inc. Stuard & Associates Inc 424 FUND TIF SBCDA - BUILDING OPERATIONS Mikolajewski & Associates, Inc. 619 BLACKTHORN Meadowbrook Golf Group, Inc. Upon a motion by Mr. King, seconded by Mr. Hunt and unanimously carried, the Commission approved the Claims submitted January 7, 2005, and ordered checks to be released 4. COMMUNICATIONS There were no Communications. $ 4,781.13 300.00 3,500.00 125.39 6,117.62 119.89 29.20 244.81 9,127.76 902.09 8,234.00 2,000.00 13,116.35 3,400.00 1,175.00 4,450.00 672.77 7,500.00 $ 65,796.01 COMMISSION APPROVED THE CLAIMS SUBMITTED JAN[ [ARY 7, 2005, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NU COMMUNICATIONS South Bend Redevelopment Commission Regular Meeting — January 7, 2005 5. OLD BUSINESS A. Correction to 2005 Schedule of Redevelopment CORRECTION To 2005 SCHEDULE OF Commission Meetings. REDEVELOPMENT COMMISSION MEETINGS. Mr. Inks noted that the 2005 Schedule of Redevelopment Commission Meetings provided to the Commission at its meeting of January 3, 2005 incorrectly listed September 17`h as a Regular Commission meeting date. The date for the second meeting in September should have been listed at September 16`h. The Commission is asked to take note of this correction. 6. NEW BUSINESS A. South Bend Central Development Area (1) Commission approval requested for Second Amendment to Lease between South Bend Redevelopment Commission and Esprit Decor dated July 2, 1999. (117 South Michigan Street) Mr. Williams reported that Carolyn A. Bilger, proprietor of the Esprit Decor establishment, requested an amendment toher lease to allow for additional time to complete an assessment of her business. The proposed Second Amendment to Lease extends the lease term to December 31, 2005 with one option to renew for three years. The rental rate will remain at $9.50 per square foot through December 31, 2005. Staff recommends approval of the Second Amendment to the Lease. Upon a motion by Mr. Hunt, seconded by Mr. King and unanimously carried, the Commission approved a Second Amendment to Lease between South Bend ILRedevelopment Commission and Esprit COMMISSION APPROVED A SECOND AMENDMENT TO LEASE BETWEEN SOUTH BEND REDEVELOPMENT COMMISSION AND ESPRIT DECOR DATED JULY 2, 1999. (117 SOUTH MICHIGAN STREET) South Bend Redevelopment Commission Regular Meeting— January 7, 2005 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (1) continued... Decor dated July 2, 1999. (117 South Michigan Street) B. Sample -Ewing Development Area (1) Filing of Resolution No. 2119 amending the Sample -Ewing Development Area Development Plan and setting a public hearing on Resolution No. 2119 for Friday, January 21,2005, 10:00 a.m. Upon a motion by Mr. King, seconded by Mr. Hunt and unanimously carried, the Commission accepted for filing Resolution No. 2119 and set a public hearing on Resolution No. 2119 for 10:00 a.m., Friday, January 21, 2005 at a Regular Meeting of the Redevelopment Commission. (2) Commission approval requested for proposal for professional services in the Sample -Ewing Development Area for property located at 400 West Sample Street. (Appraisal services, South Bend Lathe building) Mr. Laurent noted that the property located at 400 W. Sample Street is on the Commission's acquisition list to be assembled with the other parcels of Studebaker Area A as a new industrial park. Staff hired two MAI licensed appraisers to conduct appraisals of 400 W. Sample St. The values reported in those appraisals varied significantly, therefore, Staff is APW11 seeking approval to obtain a third appraisal of the property in order to reconcile the two COMMISSION ACCEPTED FOR FILING RESOLUTION No. 2119 AND SET A PUBLIC HEARING ON RESOLUTION No. 2119 FOR 10:00 A.M., FRIDAY, JANUARY 21, 2005 AT A REGULAR MEETING OF THE REDEVELOPMENT COMMISSION. South Bend Redevelopment Commission Regular Meeting —January 7, 2005 6. NEW BUSINESS (CONT.) A. Sample -Ewing Development Area (2) continued... appraisals and ultimately to make an accurate determination as to the fair market value of the property. Staff has solicited a proposal from R. E. Pitts & Associates to perform the additional appraisal. Mr. Pitts had previously submitted a proposal dated September 10, 2004 that the Commission had rejected because it was not the lowest of all of the appraisals being considered at that time. Due to the need to obtain a third appraisal of this property, staff now recommends accepting the proposal from R.E. Pitts & Associates in the amount ILI of $5,750. Upon a motion by Mr. Hunt, seconded by Mr. Downes and unanimously carried, the Commission approved the request for professional services in the Sample -Ewing Development Area and authorized staff to retain R. E. Pitts & Associates, Inc. based on the scope of services and fee proposed. (3) Commission approval requested for Confidential Settlement Agreement and Release between the City of South Bend, Indiana, the South Bend Redevelopment Commission, the Travelers Indemnity Company, Century Indemnity Company and Pacific Employers Insurance Company — subject to approval of U.S. Bankruptcy Court. Mr. Inks requested that item 6.B.(3) be withdrawn. There were no objections and the Commission withdrew Item 6.B.(3). COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SAMPLE -E W IN( DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN R. E. PITTS & ASSOCIATES, INC. BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. COMMISSION WITHDREW ITEM 6.B.(3). South Bend Redevelopment Commission Regular Meeting — January 7, 2005 6. NEW BUSINESS (CONT.) B. Sample -Ewing Development Area (4) Commission approval requested for approval of Addendum III to Agreement dated September 25, 2001 for the use of Community Development Block Grant Funding. (South Michigan Public Facility Development) Mr. Schalliol reported that the addendum is related to the South Michigan Public Facility Development. The time frame for this project needs to be extended to July 31, 2005 to continue funding. Staff is currently having the property appraised for possible disposition in February. Upon a motion by Mr. Hunt, seconded by Mr. King and unanimously carried, the Commission approved Addendum III to Agreement dated September 25, 2001 for the use of Community Development Block Grant Funding. (South Michigan Public Facility Development) C. Airport Economic Development Area (1) Staff report on disposition of property in the Airport Economic Development. (Lot 2A, Toll Road Industrial Park) Mr. Inks requested that item 6.C.(1) be tabled. There were no objections and the Commission tabled Item 6.C.(1). 14 COMMISSION APPROVED ADDENDUM III TO AGREEMENT DATED SEPTEMBER 25, 2001 FOR THE USE OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING. (SOUTH MICHIGAN PUBLIC FACILITY DEVELOPMENT) COMMISSION TABLED ITEM 6.C.(1). South Bend Redevelopment Commission f' Regular Meeting — January 7, 2005 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) Commission approval requested for Resolution No. 2122 related to acquisition of property in the Airport Economic Development Area. (Bosch Campus) Ms. Hughes reported that Resolution No. 2122 sets the purchase price for three parcels proposed for acquisition by the Commission in furtherance of the Airport Economic Development Area Development Plan. Acquisition of these three properties is necessary in order to complete the assembly of land for the expansion of the Bosch Corporate facility. An offer based on the average of two certified appraisals was submitted to each of these property owners respectively, in response to which they have counter - offered the contract price amounts listed in Attachment A. Eminent domain cannot be used in the Airport Economic Development Area; therefore, all transactions must follow the Commission's voluntary acquisition policy. It has been determined that the nature of this project is such that it warrants the payment of relocation benefits to those who are displaced. However, two of these property owners wish to waive their right to relocation benefits, as they are elderly and wish to make living arrangements with family members. Staff has worked closely with both property owners to ensure this is the right decision for them. Staff recommends that it is in the mutual ILinterest of the property owners and the South Bend Redevelopment Commission Regular Meeting — January 7, 2005 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) continued... Commission to honor the property owners' requests if possible, and to meet the negotiated asking price as submitted to the Commission. Ms. Greene advised that acquisition of property is governed by IC 36- 7 -14 -19 which requires the Commission to obtain appraisals for a determination as to the value of a particular property to be acquired and accordingly to then set the offering price based upon the average of the appraisals. The statute further grants the Commission the right to exceed that offering price if it is specifically authorized by the Commission. Ms. Hughes has reported that the property to be acquired is located in an economic development area not subject to eminent domain. Ms. Hughes has also reported to the Commission that it is necessary to acquire these properties in order to accomplish the development plan for the area. Mr. Hunt asked if this transaction completes the acquisition of property in that area. Ms. Hughes responded that there are three parcels left. Ms. Jones asked if the proposed property prices are within the budget. Ms. Hughes replied that they are. Upon a motion by Mr. King, seconded by Mr. Hunt and unanimously carried, the Commission approved Resolution No. 2122 related to acquisition of property in the IL Airport Economic Development Area. COMMISSION APPROVED RESOLUTION NO. 2122 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORTECONOMIc DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting — January 7, 2005 6. NEW BUSINESS (CONT.) D. South Bend Medical Services District There was no business in the South Bend Medical Services District. E. West Washington- Chapin Development Area There was no business in the West Washington- Chapin Development Area. F. South Side Development Area (1) Filing of Resolution No. 2120 amending the South Side Development Area Development Plan and setting a public hearing on Resolution No. 2120 for Friday, January 21, 2005, 10:00 a.m. Upon a motion by Mr. King, seconded by Mr. Hunt and unanimously carried, the Commission accepted for filing Resolution No. 2120 and set a public hearing on Resolution No. 2120 for 10:00 a.m., Friday, January 21, 2005 at a Regular Meeting of the Redevelopment Commission. G. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. H. Other There was no Other business. 7. PROGRESS REPORTS Mr. Inks reported that staff is working on completion of a 2004 Annual Report that is expected to be available by the Regular Commission Meeting scheduled for January 21, 2005. THERE WAS NO BUSINESS IN THE SOUTH BEND MEDICAL SERVICES DISTRICT. THERE WAS NO BUSINESS IN THE WEST WASH INGTON-CHAPIN DEVELOPMENT AREA. COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 2120 AND SET A PUBLIC HEARING ON RESOLUTION NO. 2120 FOR 10:00 A.M., FRIDAY, JANUARY 21, 2005 AT .A REGULAR MEETING OF THE REDEVELOPMENT COMMISSION. THERE WAS NO BUSINESS IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. THERE WAS NO OTHER BUSINESS. PROGRESS REPORTS 4w, South Bend Redevelopment Commission Regular Meeting — January 7, 2005 7. PROGRESS REPORTS (CONT.) The Redevelopment Commission collectively welcomed Mr. Greg Downes as the newest member of the Commission. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Friday, January 21, 2005 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Hunt made a motion that the meeting be adjourned. Mr. King seconded the motion and the meeting was adjourned at 10:17 a.m. Donald E. Inks, Director G