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Home My WebLink About09-03-04 Redevelopment Commission Minutes�4 A L SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING September 3, 2004 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. Matt Kahn, Secretary Mr. Robert W. Hunt Mr. Hardie Blake Mr. Philip J. Faccenda, Vice President Ms. Cheryl Greene, Esq. Redevelopment Staff: Mr. Don Inks, Director Ms. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Planner Mr. Tim Williams, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Mr. Michael Beitzinger, Economic Development Specialist Mr. Tedd Schaffer, Economic Development Specialist Others Present: Ms. Pam Paluszewski, Legal Dept. Mr. John Phair, Holladay Corp. Mr. Timothy Baker, Holladay Corp. Mr. Jerry Lerman, Steel Warehouse 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, August 20, 2004. Ms. Greene noted that the draft Minutes have not yet been reviewed by Legal. If the Commission wished to approve them, such approval should be pending Legal review. Upon a motion by Mr. Hunt, seconded by Mr. COMMISSION APPROVED THE MINUTES OF THE Kahn and unanimously carried, the REGULAR MEETING OF FRIDAY, AUGUST 20, 2004, Commission approved the Minutes of the PENDING LEGAL REVIEW. Regular Meeting of Friday, August 20, 2004, pending Legal review. 11 c Redevelopment Commission Meeting Regular Meeting — September 3, 2004 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted September 3, 2004 for approval. 324 FUND - AEDA CFH Landscape Service 414 FUND SEDA Ken Herceg & Associates Housing Development Corporation Studebaker National Museum Fitzmaurice Landscaping CFH Landscape Services 420 FUND SBCDA CB Richard Ellis CFH Landscape Service City of South Bend Michiana Lock & Key, Inc. South Bend Water Works Ziolkowski Construction, Inc. Rose Exterminator Company LL Geans, Inc. AEP 422 FUND WWCDA R. E. Pitts & Associates Jerome E. Michaels, MAI Wightman Petrie, Inc 424 FUND TIF SBCDA - BUILDING OPERATIONS Mikolajewski & Associates, Inc. South Bend Tribune CB Richard Ellis Dynamic Mechanical Services, Inc. Tri County News $ 975.00 840.00 176.00 133.00 425.00 2,102.50 6,937.57 295.00 3,378.22 8.45 133.58 118,71 0.00 80.00 14,422.28 215.50 3,250.00 3,500.00 750.00 1,863.12 101.84 150.00 901.00 67.46 C� A c Redevelopment Commission Meeting Regular Meeting — September 3, 2004 3. APPROVAL OF CLAIMS (CONT.) 428 FUND AIRPORT 2003 BOND DLZ 619 BLACKTHORN GOLF COURSE Meadowbrook Golf Group, Inc. 3,679.70 7,500.00 $ 170,595.22 Mr. Hunt asked about the $118,710 claim from Ziolkowski. Mr. Schalliol responded that that was for the construction of the plaza outside the Chocolate Caf6. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted September 3, 2004, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Tax Abatements (1) Commission approval requested for Resolution No. 2092 approving an application for real property tax deduction for property located at 2722 W. Tucker Drive in the Sample -Ewing Development Area. (Steel Warehouse) Mr. Beitzinger gave the staff report on the COMMISSION APPROVED THE CLAIMS SUBMITTED SEPTEMBER 3, 2004, AND ORDERED CHECKS TO BE RELEASED. THERE WERE NO COMMUNICATIONS. THERE WAS NO OLD BUSINESS l Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) A. Tax Abatements (1) continued... project. He noted that items 6.A. (1) and (2) are for the same project. The report covers both the real and personal property abatements. Steel Warehouse Co. Inc. is a steel service center specializing in flat rolled, low carbon steel. The company is proposing to construct a building addition of 12,800 sq. ft. at the Tucker Drive location for expanded manufacturing, warehousing, and related uses. The estimated cost of the building addition is $638,000. The project also involves the acquisition of new manufacturing material handling equipment for processing and handling steel and steel products. This equipment will be installed at two different locations, 2722 W. Tucker Drive and 1400 Riverside Drive. The total cost of the equipment is estimated to be between $2.2 and $4 million. It is estimated that the projects will create nine new permanent jobs within the first year, representing a new annual payroll of $250,660. The project is also expected to retain four hundred thirty -nine full -time jobs, representing an annual payroll of $19,315,000. The projected average annual salary for each new position to be created is $27,851. A review of the tax abatements previously granted finds that the petitioner has been granted seventeen previous tax abatements since 1984. The petitioner is in compliance G Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) A. Tax Abatements (1) continued... with the reporting requirements for the previous abatements. The building commissioner has reviewed the petitions and finds the properties to be properly zoned for the proposed use. The petitioner has completed and submitted the required Memorandum of Agreement for each of the abatements. A review of the South Bend Redevelopment designation areas finds that the property located at 2722 W. Tucker Drive is located in the Sample Ewing Development Area, which is a Tax Increment Allocation Area; therefore, the petitions for real and personal property tax abatement for the Tucker Drive location must first be approved by the South Bend Redevelopment Commission. The 1400 Riverside Drive location is not in a Redevelopment designated area and, therefore, does not require any action by the Commission for that location. The project meets the qualifications for a five year real property abatement and a five year personal property abatement under the tax abatement ordinance. Mr. Beitzinger noted that, using the building addition cost of $638,000, the abatement will save the company $59,724. They'll still pay over $39,000 during that same period. Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) A. Tax Abatements (1) continued... Mr. Beitzinger also noted that Steel Warehouse has paid over one million dollars in real property taxes the last five years and over two million dollars of personal property taxes during the same period. Mr. Beitzinger reviewed the cost of the personal property abatement: using the lower estimate of machinery cost, $2,200,000, the abatement will save the company $120,000 over five years. They'll still pay over $62,000 in additional taxes for the new equipment during that five -year period. Ms. Jones asked whether the same equipment will be installed at both locations and whether the personal property tax abatement impacts revenue if it's not in a TIF area. Mr. Beitzinger indicated that different equipment would be installed at each location. TIF does not capture tax revenue from personal property, so there is no impact at all. However, state law requires that personal property abatements also be approved by the Commission. Mr. Hunt congratulated Mr. Lerman on the company's success and growth, evidenced by the many tax abatements over the last 20 years. Mr. Lerman noted that the equipment to be purchased will allow Steel Warehouse to assume additional processes over what they presently do. Years ago they purchased machinery to mill cold steel which makes the C. 6 Redevelopment Commission Meeting ILRegular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) A. Tax Abatements (1) continued... steel very hard. They would then send the steel out for annealing so that it could be made into precision parts. Now they want to purchase annealing equipment so they can do the annealing themselves. Mr. Lerman noted that the four jobs to be added are for one shift. If the additional processes are successful at bringing in more work, additional shifts may be added. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2092 approving an application for real property tax deduction for property located at 2722 W. Tucker Drive in the Sample -Ewing Development Area. (Steel Warehouse) (2) Commission approval requested for Resolution No. 2093 approving an application for personal property tax deduction for property located at 2722 W. Tucker Drive in the Sample -Ewing Development Area. (Steel Warehouse) Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2093 approving an application for personal property tax deduction for property located at 2722 W. Tucker Drive in the Sample -Ewing Development Area. (Steel Warehouse) C, COMMISSION APPROVED RESOLUTION NO. 2092 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2722 W. TUCKER DRIVE IN THE SAMPLE -EWING DEVELOPMENT AREA. (STEEL WAREHOUSE) COMMISSION APPROVED RESOLUTION NO. 2093 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2722 W. TUCKER DRIVE IN THE SAMPLE -EWING DEVELOPMENT AREA. (STEEL WAREHOUSE) Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) B. Housing (1) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 1631 S. Scott Street. (John P. Thornton) Mr. Inks noted that the amount of the loan is $1,050.00. The amount of the grant is $7,500. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 1631 S. Scott Street. (John P. Thornton) (2) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 701 St. Vincent. (Dennis & Catherine Nolan) Mr. Inks noted that the amount of the loan is $6,250. The amount of the grant is $7,500. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 701 St. Vincent. (Dennis & Catherine Nolan) (3) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Loan Program G 8 COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 1631 S. SCOTT STREET. (JOHN P. THORNTON) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 701 ST. VINCENT. (DENNIS & CATHERINE NOLAN) G L Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) B. Housing (3) continued... for property located at 1138 N. Elmer. (Elech McKelry) Mr. Inks noted that the amount of the loan is $2,700. The amount of the grant is $7,500. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 1138 N. Elmer. (Elech McKelry) C. South Bend Central Development Area (1) Filing of Resolution No. 2088 amending Resolution No. 2042 which appropriated monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2004, and ending December 31, 2004, including all outstanding claims and obligations, fixing a time when the same shall take effect, and setting a Public Hearing on Resolution No. 2088 at 10:00 a.m., September 17, 2004. Mr. Inks noted that Resolution No. 2088 proposes an adjusted budget for 2004 for the Wayne St. Garage and retail space. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission accepted for filing Resolution No. 2088 amending Resolution No. 2042 which appropriated monies for the purpose of COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 1138 N. ELMER. (ELECH MCKELRY) COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 2088 AMENDING RESOLUTION No. 2042 WHICH APPROPRIATED MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2004, AND ENDING DECEMBER 31, 2004, INCLUDING ALL Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2004, and ending December 31, 2004, including all outstanding claims and obligations, fixing a time when the same shall take effect, and setting a Public Hearing on Resolution No. 2088 at 10:00 a.m., September 17, 2004. (2) Commission authorization requested from MDA/ABATE to use the Wayne St. Garage on September 5, 2004,1:00 P.M. to 8:30 P.M. to facilitate transportation for the Montgomery Gentry Concert. ILI Mr. Williams noted that the Muscular Dystrophy Assoc. requested the use of the Wayne St. Garage on September 5. They will clean up after their use and have provided indemnification for the Commission. Mr. Hunt asked if there will be additional costs to Ampco. Mr. Williams responded that Ampco will have someone swing by to open and close the garage. If there are any additional charges, they should be negligible. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission authorized MDA/ABATE to use the Wayne St. Garage on September 5, 2004 to facilitate transportation for the Montgomery Gentry Concert. C, 10 OUTSTANDING CLAIMS AND OBLIGATIONS, FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT, AND SETTING A PUBLIC HEARING ON RESOLUTION NO. 2088 AT 10:00 A.M., SEPTEMBER 17, 2004. COMMISSION AUTHORIZED MDA/ABATE TO USE THE WAYNE ST. GARAGE ON SEPTEMBER 5, 2004 TO FACILITATE TRANSPORTATION FOR THE MONTGOMERY GENTRY CONCERT. Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (3) Commission approval requested for professional services in the South Bend Central Development Area. (Survey, former St. Joseph /Jefferson St. garage site) Mr. Williams noted that staff requested proposals for a Rule 12 Certificate of Survey for property located at the northwest corner of Jefferson Blvd. and St. Joseph St. This is the site of the former St. Joseph/Jefferson parking garage. Three proposals were received: Wightman Petrie, $2,800; Danch, Harper & Assoc., $1,400 - $1,600; and Lang, Feeney & Assoc., $1,200. Staff recommends accepting the offer of Lang, Feeney & Assoc. Upon a motion by Mr. Kahn, seconded by Mr. Blake 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 Lang, Feeney & Assoc. for the scope of services and fee proposed. D. Sample -Ewing Development Area (1) Filing of Resolution No. 2084 amending the Sample -Ewing Development Area Development Plan and setting a Public Hearing on Resolution No. 2084 at 10:00 a.m., September 17, 2004. Mr. Inks noted that Resolution No. 2084 amends the development plan by adding two properties to the acquisition list. 11 COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM LANG, FEENEY & Assoc. FOR THE SCOPE OF SERVICES AND FEE PROPOSED. Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (1) continued... Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried, the Commission accepted Resolution No. 2084 for filing and set a Public Hearing on Resolution No. 2084 at 10:00 a.m., September 17, 2004. (2) Commission approval requested for professional services in the Sample -Ewing Development Area. (Survey, Parcel 9A) Mr. Schalliol noted that staff requested a proposal from Danch, Hamer & Associates to survey Parcel 9A in the Studebaker Corridor. Parcel 9A is at the corner of Lafayette Blvd. and Garst St. The parcel is expected to be sold to Jim McCune (Basic Machine), but an updated survey is needed to verify encroachments that exist on the property. The last survey of the property was completed in 1993 by Peirce & Associates, which is now called Danch, Harper & Associates. The proposed fee for the survey is $1,575. Staff recommends approval. Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission approved the request for proposal for professional services in the Sample -Ewing Development Area and accepted the proposal from Danch, Harper & Associates for the scope of services and fee proposed. 12 COMMISSION ACCEPTED RESOLUTION NO. 2084 FOR FILING AND SET A PUBLIC HEARING ON RESOLUTION NO. 2084 AT 10:00 A.M., SEPTEMBER 17, 2004. COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM DANCH, HARNER & ASSOCIATES FOR THE SCOPE OF SERVICES AND FEE PROPOSED. Redevelopment Commission Meeting 46�Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (3) Staff report on disposition of property in the Sample -Ewing Development Area. (Oliver Industrial Park, Lot #1) Mr. Laurent reported that staff met with Ken Poling and Michael Stepanek, Jr., on April 15, 2004 to discuss Mr. Poling's interest in purchasing Lot #1 in the Oliver Industrial Park for development of a commercial landscape distribution center. Preliminary sketches of a site plan were discussed and the overall concept of the development was acceptable to staff and the City. Following that meeting, Mr. Stepanek submitted an executed Option Agreement to Purchase Property for Private Development ILI on behalf of Mr. Poling. Staff reviewed the proposed option purchase on Lot #1, and determined that the suggested option price is $5,000, which was to be refunded to Mr. Poling if he did not enter into Contract for Sale of Land with the Commission by March 15, 2005. The property is currently valued at $114,570. Under the terms of the proposed option, the Commission would agree to hold the property until 2005 for the refundable amount of $5,000. In addition to its own review, Staff also sought an opinion from legal counsel regarding sale of property by merit of an option as this is not the Commission's usual practice in property disposition. Staff believes that the option, as proposed, would limit the Redevelopment Commission's opportunities to develop Lot #1 without any substantial benefit to the Commission. Staff does not feel that this 13 Redevelopment Commission Meeting ILI Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (3) continued... option purchase price was acceptable, nor that the concept of selling an option would be in the city's best interests. The Commission would have had to make a decision as to setting a precedent for future transactions by contracting on this basis. It is staff's opinion that the option would not meet the needs nor the best interest of the Commission. It was suggested that Mr. Poling submit a formal development proposal consistent with the Commission's usual practice. Staff asked Mr. Poling to submit said proposal on or before August 16, 2004 so that action could be taken by the Redevelopment Commission at its regular meeting held on August 20, 2004. Mr. Poling agreed that the course of action was sound, and that a proposal would be forthcoming. However, Mr. Poling did not submit a proposal to purchase and develop Lot #1. On August 31, 2004 Holladay Properties submitted a formal proposal to develop Lot #1 in the Oliver Industrial Park. Assuming that the proposal is given conceptual approval by the Commission, this proposal would place Holladay Properties in first position to develop Lot #1. Subsequently, Staff contacted Mr. Poling on September 2, 2004 to notify him that a proposal had been submitted by another developer and he accepted the course of events and expressed his desire to continue working with Redevelopment staff towards development of 14 Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (3) continued... a commercial landscape distribution center in or near the Studebaker /Oliver Redevelopment project area. Mr. Laurent indicated that staff recommends rejecting the Option Agreement to Purchase Property for Private Development submitted by Michael Stepanek, Jr. on behalf of Kenneth and Kimberly Poling LLC executed June 3, 2004. Ms. Greene also noted that at the time Mr. Poling's letter came in for consideration by the Commission, at Mr. Laurent's request, she also reviewed the proposed option agreement. Although the disposition of property (which is governed by I.C. 36 -7 -14- 22) does not expressly discuss the possibility of option agreements, legal counsel believes that disposition of property could be accomplished by way of an option if the Commission made an affirmative finding that it is in the best interest of the community from the standpoint of human and economic welfare. Because the property was proposed to sit for one year, pending exercise of the option, staff delivered to the Commission a report setting forth the factors that suggested that disposition by way of an option was not in the best interest of the community. If the Commission determines to reject the proposed option, it must make an affirmative finding that the reason it is not choosing to dispose of the property to Mr. Poling in such manner is that the proposed sale under the terms of the proposed option agreement be 15 Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (3) continued... not in the best interest of the community. Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried, the Commission finds that it is not in the best interest of the City of South Bend to execute the Option Agreement to Purchase Property for Private Development, and the Commission rejected the Option Agreement to Purchase Property for Private Development submitted by Michael Stepanek, Jr. on behalf of Kenneth and Kimberly Poling LLC, executed on June 3, 2004. The Commission instructed staff to IL work with the Polings to find another site for the landscape distribution center. Mr. Laurent asked that item 6.D.(5) be moved up on the agenda to be considered at this time. There was no objection and the item was moved forward. (5) Staff report on disposition of property in the Sample -Ewing Development Area (Lot #1, Oliver Industrial Park). Mr. Laurent gave the staff report on a proposal made by John Phair, Studebaker Partners, L.P. (Holladay Properties) to develop Oliver Industrial Park, Lot #1. The proposal calls for construction of a 25,000 square foot light industrial /warehouse building in Phase I, a 10,000 square foot addition to that building in Phase II, and a future 13,000 square foot building on the site in Phase III. The buildings would house leased industrial "flex" space. The developer C, 16 COMMISSION FINDS THAT IT IS NOT IN THE BEST INTEREST OF THE CITY OF SOUTH BEND TO EXECUTE THE OPTION AGREEMENT TO PURCHASE PROPERTY FOR PRIVATE DEVELOPMENT, AND THE COMMISSION REJECTED THE OPTION AGREEMENT TO PURCHASE PROPERTY FOR PRIVATE DEVELOPMENT SUBMITTED BY MICHAEL STEPANEK, JR. ON BEHALF OF KENNETH AND KIMBERLY POLING LLC, EXECUTED ON JUNE 3, 2004. THE COMMISSION INSTRUCTED STAFF TO WORK WITH THE POLINGS TO FIND ANOTHER SITE FOR THE LANDSCAPE DISTRIBUTION CENTER. Redevelopment Commission Meeting ILI Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (5) continued... is in negotiations with two prospective tenants, and a pre -lease for 10,000 square feet would be required before the project would proceed. Staff believes that this development would benefit the Oliver Industrial Park, assuming the building is constructed with appropriate aesthetic elements and character, given the highly visible nature of Lot #1 in the industrial park. The proposal conforms to the Redevelopment Commission bid proposal documents and forms for sale of land in the Oliver Industrial Park. Staff met with Manette Tepe of Holladay Properties to discuss the project ILI and associated site plan. The original site plan, and a revised version, were provided to the Commissioners. Given the desire of the Redevelopment Commission to protect the site lines of the former Oliver boilerhouse and smokestack, and the need to allow for future expansion of businesses onsite in the Oliver Industrial Park, staff requested changes be made in the initial conceptual site plan. Those changes included moving the building footprint towards Chapin Street to allow a greater "street presence" for the building, and to allow greater expansion potential in the future. Screening between the loading docs and the Rose Brick & Materials showroom were also recommended and the revised site plan shows an extended wall projecting the north fagade of the structure west to screen the loading docks and overhead doors. 17 Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (5) continued... Staff recommends the Commission conceptually approve the proposal as the site plan did not include building elevation drawings. It is a requirement that the developer provide elevation drawings of the structures to be constructed before final approval is given to the proposal. Staff will coordinate that activity with the developer. The developer wishes to begin construction of the facility in October 2004, so an accelerated schedule is desired. A final site plan will be brought to the Commission for approval, as will a contract for sale of land. Mr. John Phair indicated that Studebaker Partners' proposal is to construct a 25,000 sft industrial building with expansion capability. There is room at the western side of the property to construct an additional building at a later time. Holladay Properties has been working with a particular tenant from Indianapolis who has acquired a company and wishes to double its size. The Indianapolis company has been shown available buildings around South Bend, but they have not found anything that suits them. They do like the Oliver Industrial Park location. They are a material supplier to the housing and commercial industries. Studebaker Partners is very close to signing a lease with that tenant. The tenant is waiting for Studebaker Partners to get control of the land. They want to move in by March 2005. Mr. Phair noted that Lot #1 requires more masonry on its building and they intend to meet that requirement, so the development C 18 Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (5) continued... will look very nice. Ms. Greene noted that the public sale of property is governed by I.C. 36- 7- 14 -22. This property has previously been through the bid process. At that time there were no successful bidders. More than thirty days have passed since the property was offered. By statute the Commission may then negotiate to sell the property. The Commission may dispose of the property if it feels the proposal is in a manner to further its development plan for the area. Staff recommends approving the proposal from Studebaker Partners conditioned on receipt of acceptable plans to be presented to the Commission. Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission approved the proposal from Studebaker Partners conditioned on receipt of acceptable plans to be presented to the Commission. (4) Staff report on disposition of property in the Sample -Ewing Development Area. (Request for extension of time, Habitat for Humanity, East Sample Street) Mr. Schalliol noted that Habitat for Humanity is interested in submitting a proposal for a site on East Sample Street between Fellows and Carroll Streets. The Commission previously granted Habitat a 90- 19 COMMISSION APPROVED THE PROPOSAL FROM STUDEBAKER PARTNERS CONDITIONED ON RECEIPT OF ACCEPTABLE PLANS TO BE PRESENTED TO THE COMMISSION. } 6A_ A Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (4) continued... day study period which ended September 3. Habitat is still working through the proposal process and asks for an additional study period of three months until December 1, 2004. The staff has had no other interest in the property to date. Therefore, staff recommendation is to grant the additional 90- day study period. Upon a motion by Mr. Kahn, seconded by COMMISSION GRANTED HABITAT FOR Mr. Hunt and unanimously carried, the HUMANITY AN ADDITIONAL 90 -DAY STUDY Commission granted Habitat for Humanity PERIOD FOR THE EAST SAMPLE STREET an additional 90-day study period for the East DEVELOPMENT SITE, ENDING DECEMBER 3, 2004 Sample Street development site, ending December 3, 2004. E. Airport Economic Development Area (1) Commission approval requested for professional services in the Airport Economic Development Area. (Title search, 23885 Brick Road). Mr. Williams noted that staff requested a proposal from Meridian Title Corp. to do title work on the property located at 23885 Brick Road. The proposal received was for a fee of $100. Staff recommends accepting the proposal. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal for professional services in the Airport Economic Development Area and accepted the proposal from Meridian Title 20 COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM MERIDIAN TITLE CORP. FOR THE SCOPE OF SERVICES AND FEE PROPOSED. Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (1) continued... Corp. for the scope of services and fee proposed. (2) Commission approval requested for professional services in the Airport Economic Development Area. (Appraisal, 23885 Brick Road). Mr. Williams noted that staff requested proposals from R. E. McCloskey & Assoc., Jerome Michaels, and R.E. Pitts & Assoc. to do appraisals on the property located at 23885 Brick Road. R.E. McCloskey's proposal was for a fee of $1,000, Jerome Michaels' proposal was $1,500,.and R.E. ILI Pitts' proposal was $2,500. Two appraisals are required. Staff recommends accepting the proposals of R. E. McCloskey and Jerome Michaels. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposals for professional services in the Airport Economic Development Area and accepted the proposals from R. E. McCloskey and Jerome Michaels for the scope of services and fee proposed. (3) Commission approval requested for professional services in the Airport Economic Development Area. (Survey, 23885 Brick Road). Mr. Williams noted that staff requested proposals from Danch, Harper & Assoc., 21 COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND ACCEPTED THE PROPOSALS FROM R. E. MCCLOSKEY AND JEROME MICHAELS FOR THE SCOPE OF SERVICES AND FEE PROPOSED. Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (3) continued... Lang, Feeney & Assoc. and Wightman Petrie, Inc. to survey the property located at 23885 Brick Road. Danch Hamer's proposal was for a fee of $600 -800, Lang Feeney's proposal was $500. Wightman Petrie's proposal was $650. Staff recommends accepting the proposal of Lang Feeney & Assoc. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposals for professional services in the Airport Economic Development Area and accepted the proposal from Lang, Feeney & Assoc. for the scope of services and fee proposed. (4) Commission approval requested for professional services in the Airport Economic Development Area. (Appraisal, Vanderhayden Distributing) Mr. Williams noted that staff requested proposals from Jerome Michaels and R.E. Pitts & Assoc. to do appraisals on the property located at 1743 Commerce Drive ( Vanderhayden Distributing). Jerome Michaels' proposal was $3,500. R.E. Pitts' proposal was $3,200. Two appraisals are required. Staff recommends accepting the proposals of Jerome Michaels and R.E. Pitts. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the ✓` 22 COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM LANG, FEENEY & Assoc. FOR THE SCOPE OF SERVICES AND FEE PROPOSED. COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR PROFESSIONAL SERVICES IN THE Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (4) continued... Commission approved the request for proposals for professional services in the Airport Economic Development Area and accepted the proposals from Jerome Michaels and R.E. Pitts for the scope of services and fee proposed. (5) Commission approval requested for professional services in the Airport Economic Development Area. (Survey, U.S. 31 Industrial Park, Lots 5 & 6) Mr. Schalliol noted that The Abonmarche Group has submitted a proposal to prepare an ALTA/ACSM Land Title Survey for Lots 5 and 6 in the U.S. 31 Industrial Park. The proposal has a fee of $1,900. The survey is needed for reference for a pending land sale. Staff recommends accepting the proposal. Upon a motion by Mr. Blake, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for proposals for professional services in the Airport Economic Development Area and accepted the proposal from The Abonmarche Group for the scope of services and fee proposed. (6) Commission approval requested for paving services in the Airport Economic Development Area. (Lathrop Drive) Mr. Schalliol noted that staff had requested a proposal from Walsh & Kelly to pave Lathrop Drive near the intersection of Bendix C 23 AIRPORT ECONOMIC DEVELOPMENT AREA AND ACCEPTED THE PROPOSALS FROM JEROME MICHAELS AND R.E. PITTS FOR THE SCOPE OF SERVICES AND FEE PROPOSED. COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM THE ABONMARCH GROUP FOR THE SCOPE OF SERVICES AND FEE PROPOSED. Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (6) continued... Drive. DHL, a parcel delivery service, is in the process of constructing a new 50,000 sft distribution center on the south side of Lathrop east of UPS. The Airport Authority is reconstructing and upgrading a section of Lathrop Drive adjacent to the project and has requested that the City upgrade the pavement infrastructure to a point 665' west of the Lathrop and Bendix intersection. Walsh & Kelly's proposal is for $37,000. Staff recommends approving the proposal. Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for proposal for paving services in the Airport Economic Development Area and accepted the proposal from Walsh & Kelly for the scope of services and fee proposed. (7) Filing of Resolution No. 2090 amending the Airport Economic Development Area Development Plan, and setting a Public Hearing on Resolution No. 2090 at 10:00 a.m., September 17, 2004. Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried, the Commission accepted for filing Resolution No. 2090 amending the Airport Economic Development Area Development Plan, and setting a Public Hearing on Resolution No. 2090 at 10:00 a.m., September 17, 2004. 24 COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR PAVING SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM WALSH & KELLY FOR THE SCOPE OF SERVICES AND FEE PROPOSED. COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 2090 AMENDING THE AIRPORT ECONOMIC DEVELOPMENT AREA DEVELOPMENT PLAN, AND SETTING A PUBLIC HEARING ON RESOLUTION NO. 2090 AT 10:00 A.M., SEPTEMBER 17, 2004. G C� Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (8) Filing of Resolution No. 2091 amending the Airport Economic Development Area Development Plan, setting a Public Hearing on Resolution No. 2091 at 10:00 a.m., September 17, 2004. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission accepted for filing Resolution No. 2091 amending the Airport Economic Development Area Development Plan, and setting a Public Hearing on Resolution No. 2091 at 10:00 a.m., September 17, 2004. F. South Bend Medical Services District G. West Washington- Chapin Development Area H. South Side Development Area (1) Commission approval requested for Resolution No. 2089 approving the fair reuse value of property in the South Side Development Area. Mr. Schalliol noted that Resolution No. 2089 sets the fair reuse value of property for a 28,000 sft parcel of land surrounded by the Erskine Village Retail Development at 4842 Miami Street. The value derived from two independent appraisals is $142,000. The proposed reuse is retail commercial use consistent with the development of an integrated retail center. Upon a motion by Mr. Hunt, seconded by Mr. Kahn and unanimously carried the Commission approved Resolution No. 2089 25 COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 2091 AMENDING THE AIRPORT ECONOMIC DEVELOPMENT AREA DEVELOPMENT PLAN, AND SETTING A PUBLIC HEARING ON RESOLUTION NO. 2091 AT 10:00 A.M., SEPTEMBER 17, 2004. COMMISSION APPROVED RESOLUTION NO. 2089 APPROVING THE FAIR REUSE VALUE OF PROPERTY IN THE SOUTH SIDE DEVELOPMENT AREA. Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) H. South Side Development Area (1) continued... approving the fair reuse value of property in the South Side Development Area. (2) Staff report on acquisition of property in the South Side Development Area. (4201 S. Main Street) Mr. Schalliol noted that on August 6, 2004 the Redevelopment Commission approved an offering price of $117,500 for 4201 S. Main Street and a purchase offer was sent. The property owner has submitted a counter offer of $124,000. The higher of the two appraisals was $120,000. Staff believes an additional 6,500 above the offering price is IL reasonable based on the location of this parcel and the fact that the property is vacant and will have no relocation expenses. Staff recommends approval of the counter offer. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission accepted the counter offer of $124,000 for 4201 S. Main Street in the South Side Development Area. (3) Commission approval requested for professional services in the South Side Development Area. (Survey & design, Argyle Drive Project) Mr. Schalliol noted that staff is requesting survey and design services to develop a pedestrian access node at Argyle Drive connecting to the Erskine Village Development. When the Target project was 26 COMMISSION ACCEPTED THE COUNTER OFFER OF $124,000 FOR 4201 S. MAIN STREET IN THE SOUTH SIDE DEVELOPMENT AREA. Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) H. South Side Development Area (3) continued... completed an 8 -ft. tall fence was erected along the entire east perimeter of the Village site. This proposal would create a pedestrian entrance into the Village. The proposal will cover design and construction documentation for this project. The Abonmarche Group has submitted a proposal with a fee of $6,000. Staff recommends approval. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal for professional services in the South Side Development Area and accepted the proposal from The Abonmarche Group for the scope of services and fee proposed. (4) Commission approval requested for professional services in the South Side Development Area. (Miami Street, Parcel #1) Mr. Schalliol noted that staff requested two proposals to complete commercial appraisals for property located along Miami Street in the South Side Development Area. The property was acquired from the Indiana Department of Transportation and will be disposed of as part of the normal Commission disposition process. Jerome Michaels has made a proposal to perform the appraisal for $1,500. R.E. Pitts has made a proposal to perform the appraisal for $1,750. Two proposals are required. Staff requests approval of both proposals. 27 COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR PROFESSIONAL SERVICES IN THE SOUTH SIDE DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM THE ABONMARCHE GROUP FOR THE SCOPE OF SERVICES AND FEE PROPOSED. Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) H. South Side Development Area (4) continued... Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposals for professional services in the South Side Development Area and accepted the proposal from Jerome Michaels and R. E. Pitts for the scope of services and fee proposed. (5) Commission approval requested for Bid Specifications and Design Considerations for Miami Street property, Parcel #1 in the South Side Development Area. Mr. Schalliol noted that Bid Specifications and Design Considerations must be approved for Commission -owned property that is offered for sale. The Bid Specifications for Parcel #1 include that the property must be acquired as part of a larger retail commercial use, it cannot be used for an out lot, if there is a building located on the property, new construction must have similar characteristics to the buildings being built around it, and the proposal must meet existing zoning requirements. Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission approved the Bid Specifications and Design Considerations for Miami Street property, Parcel #1 in the South Side Development Area. 28 COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR PROFESSIONAL SERVICES IN THE SOUTH SIDE DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM JEROME MICHAELS AND R. E. PITTS FOR THE SCOPE OF SERVICES AND FEE PROPOSED. COMMISSION APPROVED THE BID SPECIFICATIONS AND DESIGN CONSIDERATIONS FOR MIAMI STREET PROPERTY, PARCEL ##I IN THE SOUTH SIDE DEVELOPMENT AREA. r Redevelopment Commission Meeting IL Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) H. South Side Development Area (6) Commission authorization requested to publish Notice of Intended Sale of Property in the South Side Development Area with publication dates of September 10 and September 17, 2004 and Receipt of Bids to be 10:00 a.m., October 1, 2004. (Miami Street, Parcel #1) Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission authorized publication of the Notice of Intended Sale of Property in the South Side Development Area with publication dates of September 10 and September 17, 2004 and Receipt of Bids to be 10:00 a.m., October 1, 2004. (Miami Street, Parcel #1) (7) Commission approval requested for Resolution No. 2094 setting a Public Hearing on the proposed amendment to the declaratory resolution for the South Side Development Area pursuant to I.C. 36 -7 -14 -17.5 and authorizing the publication of Notice of Public Hearing. Mr. Inks noted that the Public Hearing will consider creating a new allocation area in the South Side Development Area for the purpose of bond financing for the Erskine Village Project. The Public Hearing is set for 8:00 a.m., Monday, September 13, 2004. Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission approved Resolution No. 2094 setting a public hearing on the proposed amendment to the declaratory resolution for 29 COMMISSION AUTHORIZED PUBLICATION OF THE NOTICE OF INTENDED SALE OF PROPERTY IN THE SOUTH SIDE DEVELOPMENT AREA WITH PUBLICATION DATES OF SEPTEMBER 10 AND SEPTEMBER 17, 2004 AND RECEIPT OF BIDS TO BE 10:00 A.M., OCTOBER 1, 2004. (MIAMI STREET, PARCEL #1) COMMISSION APPROVED RESOLUTION NO. 2094 SETTING A PUBLIC HEARING ON THE PROPOSED AMENDMENT TO THE DECLARATORY RESOLUTION FOR THE SOUTH SIDE DEVELOPMENT AREA PURSUANT TO I.C. 36 -7- 14 -17.5 AND AUTHORIZING THE PUBLICATION OF NOTICE OF PUBLIC HEARING. 14 r Redevelopment Commission Meeting Regular Meeting — September 3, 2004 6. NEW BUSINESS (CONT.) H. South Side Development Area (7) continued... the South Side Development Area pursuant to I.C. 36 -7 -14 -17.5 and authorizing the publication of Notice of Public Hearing. I. Northeast Neighborhood Development Area 7. Progress Reports Mr. Phair thanked the Commission for allowing Fire PROGRESS REPORTS Arts to use the former PAC building temporarily. He has been in two cities recently where small galleries and cultural entities made a major impact on the life of the downtown. 8. Next Commission Meeting A. Special Meeting: The next meeting of the Redevelopment Commission is a Special Meeting scheduled for Monday, September 13, 2004 at 8:00 a.m. B. Next Regular Meeting: The next Regular Meeting of the Redevelopment Commission is scheduled for Friday, September 17, 2004 at 10:00 a.m. 9. Adjournment There being no further business to come before the Redevelopment Commission, Mr. Kahn made a motion that the meeting be adjourned. Mr. Blake seconded the motion and the meeting was adjourned at 10:50 a.m. / 2e Do ald E. Inks, Director 30 NEXT COMMISSION MEETINGS ADJOURNMENT Philip J. Faccenda, Vice President