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HomeMy WebLinkAbout07-16-04 Redevelopment Commission MinutesAM 14 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING July 16, 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. Hardie Blake, Jr. Mr. Robert W. Hunt Mr. Philip J. Faccenda, Vice President Ms. Cheryl Greene, Esq. Redevelopment Staff Mr. Owen Rock, Assistant Director Ms. Cheryl Phipps, Recording Secretary Mr. Robert Mathia, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Mr. Bill Schalliol, Economic Development Specialist Others Present: Ms. Pam Paluszewski, Legal Dept. Mr. Randy Rompola, Baker & Daniels Mr. Matt Grever, Anchor Properties Mr. Alan Feldbaum, Attorney Mr. Larry Jenks Mr. Andy Grontkowski 2. APPROVAL OF MINUTES There were no Minutes for approval. 3. APPROVAL OF CLAIMS THERE WERE NO MINUTES FOR APPROVAL. Redevelopment Commission Claims submitted July 16, 2004 for approval. FUND 305 SBCDA 2003 BOND Tri County News SBD Reprographics Walker Parking Consultants 1 62.93 92.82 22,086.39 Redevelopment Commission Meeting Regular Meeting — July 16, 2004 3. APPROVAL OF CLAIMS (CONT.) 324 FUND - AIRPORT Ritschard Bros., Inc. 4,461.00 South Bend Water Works 1,179.25 Kenney Outdoor Solutions 3,543.75 414 SAMPLE -EWING Baker General Maintenance 573.36 Ken Herceg & Associates 5,578.00 420 SBCDA CB Richard Ellis 366.74 Business Districts, Inc. 4,402.12 Lehman & Lehman 4,346.41 Ziolkowski Construction, Inc. 248,936.10 FUND 424 Mikolajewski & Associates, Inc. 1,397.34 CB Richard Ellis 150.00 RE Pitts & Associates, Inc 1,000.00 422 FUND WEST WASHINGTON Farrington Appraisals, Inc 1,500.00 $ 299,676.21 Mr. Hunt asked about the claim from Ziolkowski Construction for $248,936.10. Mr. Mathia responded that it was for renovation of the retail space in the Palais for The Vine restaurant Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted July 16, 2004, and ordered checks to be released C, 2 COMMISSION APPROVED THE CLAIMS SUBMITTED JULY 16, 2004, AND ORDERED THE CHECKS TO BE RELEASED Redevelopment Commission Meeting Regular Meeting — July 16, 2004 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business 6. NEW BUSINESS A. Public Hearing (1) Public Hearing on Resolution No. 2063 amending the West Washington- Chapin Development Area Development Plan. Mr. Rock explained that Resolution No. 2063 adds seven properties to the acquisition list for the West Washington - Chapin Development Area Development Plan. The properties contain two old industrial buildings. One is an old machine shop which we will relocate to another portion of the city. The other is unused. Both property owners are willing sellers. Ms. Greene noted that an amendment by the Commission to the Development Plan is covered by I.C. 36 -7 -14 -17.5. Mr. Rock asked that the following items be entered into the record: (1) a copy of the Notice of Hearing; (2) copies of affidavits from the South Bend Tribune and the Tri- County News that the Notice of Hearing was published in those newspapers on July 2, 2004; (3) a memo from staff stating that affected property owners and interested neighborhood associations were notified; and (4) there were no remonstrances received as of 10:00 a.m. C3 THERE WERE NO COMMUNICATIONS. THERE WAS NO OLD BUSINESS Redevelopment Commission Meeting Regular Meeting — July 16, 2004 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Ms. Greene advised that, under 36 -7 -14- 17.5, when the Commission amends the Development Plan, the Commission is not required to have evidence or make findings that were required for the establishment of the original development area. However, the Commission is required to make the following findings before approving the amendment: (1) The amendment is reasonable and appropriate when considered in relation to the original resolution, plan and purposes of I.C. 36 -7- 14, and (2) The resolution or plan, with the proposed amendment, conforms to the comprehensive plan for the City. Resolution No. 2063 includes this language and accordingly, adoption by the Commission would satisfy the requirements of the statute. Ms. Jones opened the Public Hearing for anyone who wished to speak regarding Resolution No. 2063. There was no one who wished to speak. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (2) Commission approval requested for Resolution No. 2063. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2063 amending the West Washington - Chapin Development Area Development Plan C. 4 PUBLIC HEARING ON RESOLUTION NO. 2063 COMMISSION APPROVED RESOLUTION NO. 2063 AMENDING THE WEST WASHINGTON -CHAPIN DEVELOPMENT AREA DEVELOPMENT PLAN Redevelopment Commission Meeting Regular Meeting — July 16, 2004 IL 6. NEW BUSINESS (CONT.) B. Tax Abatements C. Housing D. South Bend Central Development Area (1) Commission approval requested for amendment to proposal for consulting services in the South Bend Central Development Area. (Business Districts, Inc. and C.B. Richard Ellis South Bend Mr. Mathia explained that a consortium of Business Districts, Inc. and C.B. Richard Ellis South Bend jointly submitted a proposal to carry out a market and economic analysis of the Hotel La Salle and the Osco Block. The Osco Block included the site of the old parking garage located on the corner of Jefferson and St. Joseph. During the analysis negotiations began with Browning Investments and Baker & Daniels for development of the parking garage site. In order to react quickly Staff began utilizing the services of Business Districts, Inc. as advisors in the negotiations. The initial cost of the services was to be covered by a contingency. However, negotiations have gone on longer than anticipated and Business Districts, Inc. has submitted a proposal to amend the subject agreement for the purposes of completing the negotiations. The proposal is in the amount of $10,000. This would be the second amendment to the original agreement. The first amendment in the amount of $6,750 was approved to expand the market analysis to look at the status of the entire downtown commercial office sector. The original contract amount was G Redevelopment Commission Meeting Regular Meeting — July 16, 2004 IL 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (1) continued... $20,000 and a contingency of $5,000 was approved by the Commission. The Redevelopment Commission is requested to: (a) approve the concept of the proposed amendment; (b) approve funding up to $10,000; (c) direct Staff to negotiate an amendment to the original agreement; and (d) authorize signature upon completion of an amendment acceptable to Legal Counsel. Staff recommends approval of the proposal and the funding level. Mr. Hunt asked if staff anticipated an end to this project. Mr. Mathia responded that he expects this to be the last amendment to the contract. Ms. Jones asked what the total cost of the contract will be with this amendment. Mr. Mathia responded that the total cost is approximately $36,750. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the amendment to proposal for consulting services in the South Bend Central Development Area. (Business Districts, Inc. and C.B. Richard Ellis South Bend) Mr. Kahn recused himself because of a conflict of interest. (2) Commission approval requested for proposal for consulting services in the South Bend Central Development Area. C, COMMISSION APPROVED THE AMENDMENT TO PROPOSAL FOR CONSULTING SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (BUSINESS DISTRICTS, INC. AND C.B. RICHARD ELLIS SOUTH BEND) Redevelopment Commission Meeting Regular Meeting — July 16, 2004 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (2) continued... (Business Districts, Inc.) Mr. Mathia noted that Business Districts, Inc. (BDI) has submitted a proposal to prepare an RFQ/RFP to solicit proposals for redevelopment of the Hotel La Salle. The proposed work is a follow -on to their economic and market analysis for the Hotel and the Osco Block. The Commission approved in principal the concept of this follow -on work when the proposal for the market and economic analysis was approved on February 6, 2004. The proposed work is for the Hotel La Salle only. A separate proposal may be submitted for the Osco Block at a later time. The BDI proposal contains two activities. The first activity includes a review of the site, interviews with interested parties and the preparation of the RFQ/RFP as a deliverable. The second activity is optional. Under the second activity BDI would provide assistance to the Staff and Commission in the review, evaluation and ranking of any developer proposals received. The total cost for the two activities is estimated to be $10,000. The Redevelopment Commission is requested to (a) approve the concept of the proposal, including both activities; (b) approve funding up to $12,500 (the additional $2,500 is to cover any contingencies); (c) direct Staff to negotiate c, 7 Redevelopment Commission Meeting Regular Meeting — July 16, 2004 6. NEW BUSINESS CONT. D. South Bend Central Development Area (2) continued... an agreement or contract based on the proposal; and (d) authorize signature upon completion of an agreement or contract acceptable to Legal Counsel. Staff recommends approval of the proposal and the funding level. The option to implement the second activity would only be exercised if the services are found to be necessary. Mr. Hunt noted that in the section of the proposal addressing the Fee, there is the statement, "This fee is closed end and no other expenses or reimbursables are to be submitted." Mr. Mathia indicated he understood the Commission's desire to ILhold this contract to its stated fee. Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission approved the request for proposal for consulting services in the South Bend Central Development Area and accepted the proposal from Business Districts, Inc. for the scope of services and fee proposed. ) Mr. Kahn recused himself because of a conflict of interest. (3) Commission authorization requested to use the Plaza next to the Chocolate Cafe on various Saturdays during fall 2004. (DTSB) Mr. Mathia noted that DTSB has requested to use the plaza next to the Chocolate Cafe for public events on the Fridays prior to Notre Dame football home games. They c8 Li COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR CONSULTING SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM BUSINESS DISTRICTS, INC. FOR THE SCOPE OF SERVICES AND FEE PROPOSED. Redevelopment Commission Meeting Regular Meeting — July 16, 2004 6. NEW BUSINESS CONT. D. South Bend Central Development Area (3) continued... plan to provide entertainment, sell food and drinks (including alcoholic beverages) from 7:00 p.m. to 10:00 p.m. on September l0and 24, October 1, 8, and 22, and November 12. They will be working with a licensed caterer who holds a permit to serve alcoholic beverages. The events will contribute to improving the vitality of the downtown which is a major goal of the Commission. Staff recommends approval of the request, subject to furnishing proof of indemnification. Ms. Greene expressed concern that, with the consumption of alcohol, the activities might not be limited to the plaza area and the College Football Hall of Fame property. She wanted to be sure the CFHOF and Chocolate Cafe either participated or were made aware of the event. Mr. Mathia said he would let DTSB know of our concerns Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved the request from DTST to use the plaza next to the Chocolate Cafe on September 10 and 24, October 1, 8, and 22, and November 12, 2004, contingent on receiving indemnification from DTSB. (4) Commission approval requested for Resolution No. 2071 approving the Fair Rental Value of retail space in the South Bend Central Development Area. (Wayne Street Retail) C COMMISSION APPROVED THE REQUEST FROM DTST TO USE THE PLAZA NEXT TO THE CHOCOLATE CAFE ON SEPTEMBER 10 AND 24, OCTOBER 1, S, AND 22, AND NOVEMBER 12, 2004, CONTINGENT ON RECEIVING INDEMNIFICATION FROM DTSB. Redevelopment Commission Meeting IL Regular Meeting — July 16, 2004 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (4) continued... Mr. Williams noted that two appraisals were requested and received for the retail space at the Wayne St. Parking Garage. A review appraisal was done. The average of the two appraisals is reflected in Resolution No. 2071. The retail space is 3,666 sft. The 1,788 sft at 117 E. Wayne (Lease Space #1) will be offered at $8.125/sft; the 1,056 sft at 119 E. Wayne (Lease Pace #2) will be offered at $8.375 /sft. Staff requests approval of Resolution No. 2071. Ms. Greene noted that her review of the appraisals indicates that the reason for the different values being given for the two spaces is based on a variety of factors including the size of each space, location of each space (corner vs. not corner), and proximity to the downtown. Mr. Hunt noted that the larger space is currently leased. He asked what that tenant's lease rate was and if her rent will go up. Mr. Williams indicated that he has asked that she sign a new lease. She is downsizing into a smaller space. Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission approved Resolution No. 2071 approving the Fair Rental Value of retail space in the South Bend Central Development Area. (Wayne Street Retail) 10 COMMISSION APPROVED RESOLUTION NO. 2071 APPROVING THE FAIR RENTAL VALUE OF RETAIL SPACE IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (WAYNE STREET RETAIL) 11 14 Redevelopment Commission Meeting Regular Meeting — July 16, 2004 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (5) Commission approval requested for Second Amendment to Parking Agreement between the Memorial Health & Lifestyle Center and the City of South Bend Department of Redevelopment. Mr. Williams noted that the parking needs of the Memorial Health & Lifestyle Center have been reviewed over the past one and one -half years and its parking spaces reduced to 167 spaces at the south end of the garage (all floors). A further reduction from 167 to 157 has been requested, giving back to the city the remaining rooftop parking spaces. Staff recommends approval. Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission approved the Second Amendment to Parking Agreement between the Memorial Health & Lifestyle Center and the City of South Bend Department of Redevelopment. E. Sample -Ewing Development Area F. Airport Economic Development Area (1) Commission permission requested to sink a well on Commission -owned property in the Airport Economic Development Area. Mr. Rock noted that the proposal is to sink a well on Lot 1B in the Corporate Office Park at a cost of approximately $11,400 to 11 COMMISSION APPROVED THE SECOND AMENDMENT TO PARKING AGREEMENT BETWEEN THE MEMORIAL HEALTH & LIFESTYLE CENTER AND THE CITY OF SOUTH BEND DEPARTMENT OF REDEVELOPMENT. Redevelopment Commission Meeting Regular Meeting — July 16, 2004 6. NEW BUSINESS (CONT.) F. Airport Economic Development Area (1) continued... supply water to a portion of the irrigation system in the office park.. The purpose of the well is to save money on the water bills for Blackthorn Corporate Park. The sprinkler system is hooked up to city water. The cost of city water to that portion of the sprinkler system is approximately $9,000 per year. The City Engineer will give his permission to sink a well which we will then hook into the Commission's sprinkler system. The savings will pay for the cost of the well in approximately 18 months. The well will be sunk behind an electronic board which controls the irrigation system on the lot which is in a 30 ft. landscape easement. It will not hinder development on that site and it will be well screened. Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved the request to sink a well on Commission -owned property in the Airport Economic Development Area. G. South Bend Medical Services District H. West Washington- Chapin Development Area I. South Side Development Area (1) Commission approval requested for Resolution No. 2072, a preliminary bond resolution of the South Bend Redevelopment Commission authorizing 12 COMMISSION APPROVED THE REQUEST TO SINK A WELL ON COMMISSION -OWNED PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA Redevelopment Commission Meeting ILRegular Meeting — July 16, 2004 6. NEW BUSINESS CONT. I. South Side Development Area (1) continued... the issuance of City of South Bend, Indiana, Redevelopment District Tax Increment Revenue Bonds and related matters. Mr. Rompola, explained that the proposed bonds are for a project at the southwest corner of the intersection of Ireland and Michigan Streets. Resolution No. 2072 authorizes the issuance of the bonds for public improvements needed for the project and schedules two public hearings. It is contemplated that there would be an additional bond issue through the Economic Development Commission (EDC) for the on -site improvements. The Redevelopment Commission's role in the EDC bond would be to pledge the tax increment revenues from the project for repayment of both bonds. The bonds for the public improvements would be senior, sold to the market. The EDC bonds would be junior to the Redevelopment Commission bonds. There is a special meeting of the Redevelopment Commission scheduled for July 27 at 8:00 a.m. to adopt the final bond resolution, hold the public hearing and appropriate the proceeds of the bonds, and hold a public hearing to amend the South Side Development Area to split out a TIF area with the same boundaries as the project. The revenues from that TIF area would be used to pay for these bonds. 13 Redevelopment Commission Meeting Regular Meeting — July 16, 2004 6. NEW BUSINESS CONT. I. South Side Development Area (1) continued... Mr. Feldbaum, representing Anchor Associates, the developer, noted that Anchor has obtained a three -year Letter of Credit from Fifth Third Bank to secure the obligations of the bonds until TIF revenues are generated which will make the bonds more marketable. Anchor has also agreed to purchase the EDC bonds. Mr. Grever noted that the south boundary of the project is the U.S. 31 bypass. The overall site is approximately 60 acres. There are some 1930s homes on the front. The back has some vacant, prefabricated metal buildings. The middle of the site is the old St. Joseph County construction demolition landfill. The project has a lot of complications for development. Two Anchor tenants have announced so far: Lowes Home Improvement (11 /05 opening) and a WallMart Super Center (3/06 opening). There is room for approximately 70,000 sft of development next to Walmart. Anchor is working with several junior anchor tenants (20- 30,000 sft) for that space. In addition to the retail components, Mr. Grever said there are seven outlots which are part of his property and two properties owned by other business which are expected to remain. Anchor is working with several restaurant concepts for the outlots, two or three of which would be 14 Redevelopment Commission Meeting Regular Meeting — July 16, 2004 6. NEW BUSINESS CONT. I. South Side Development Area (1) continued... entirely new to St. Joseph County. The TIF bond is to make improvements to Ireland Road which will be widened from two lanes to five lanes near the intersection and work back down to two lanes at the western end of the project. There will be two traffic signal entrances. There will also be some improvements to Michigan Street, including a double left turn lane. Mr. Kahn expressed the Commission's excitement over the project. Mr. Grever indicated that demolition of the vacant buildings should begin immediately. The homeowners have a couple of months to relocate, but by fall and winter the road improvements will be started and much other work beginning on the site. Anchor is to provide the building pads to the tenants by next summer. Mr. Hunt asked about the size of the bond at $2.8 million. He thought it was $1.2 million. Mr. Rompola explained that the $2.8 is a not -to- exceed amount, intended to make room for any unexpected rise in costs. Mr. Kahn recused himself because of a conflict of interest. Upon a motion by Mr. Hunt, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution 15 COMMISSION APPROVED RESOLUTION NO. 2072, A PRELIMINARY BOND RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION AUTHORIZING THE ISSUANCE OF CITY OF SOUTH Redevelopment Commission Meeting �s Regular Meeting — July 16, 2004 6. NEW BUSINESS (CONT.) BEND, INDIANA, REDEVELOPMENT DISTRICT TAX INCREMENT REVENUE BONDS AND I. South Side Development Area RELATED MATTERS (1) continued... No. 2072, a preliminary bond resolution of the South Bend Redevelopment Commission authorizing the issuance of City of South Bend, Indiana,Redevelopment District Tax Increment Revenue Bonds and related matters. J. Northeast Neighborhood Development Area K. Other 7. Progress Reports Mr. Rock noted that this is his last meeting. He has PROGRESS REPORTS (6w been with the City of South Bend for seven good years, but has now accepted a position as director of the Greater LaPorte Economic Development Council. The Commissioners wished him well in this new opportunity. 8. Next Commission Meeting The next meeting of the Redevelopment Commission NEXT COMMISSION MEETING will be a Special Meeting on Tuesday, July 28, at 8:00 a.m. 16 G C7 14 Redevelopment Commission Meeting Regular Meeting — July 16, 2004 9. Adjournment There being no further business to come before the Redevelopment Commission, Mr. Kahn made a motion that the meeting be adjourned. Mr. Hunt seconded the motion and the meeting was adjourned at 10:45 a.m. - i"-'JJ z �� Don d E. Inks, Director 17 ADJOURNMENT Philip J. Faccenda, Vice President