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HomeMy WebLinkAbout05-07-04 Redevelopment Commission Minutes� 1 A SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING May 7, 2004 10:00 a.m. Presiding: Robert W. Hunt, President 1. ROLL CALL Members Present: Legal Counsel: 227 West Jefferson Boulevard South Bend, Indiana Mr. Robert W. Hunt, President Ms. Marcia Jones, Vice - President Mr. Philip J. Faccenda, Secretary Mr. Matt Kahn Mr. Hardie Blake, Jr. Ms. Cheryl Greene, Esq. Redevelopment Staff: Mr. Owen Rock, Assistant Director Ms. Pamela Morris, Recording Secretary Mr. Robert Mathia, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Ms. Jennifer Hughes, Economic Development Planner Others Present: Ms. Pam Paluszewski, Legal Department Mr. William Panzica, Crescent Michiana Properties III 2. APPROVAL OF MINUTES A. Commission approval of the Minutes of the Regular Meeting of March 19, 2004. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the Minutes of the Regular Meeting of March 19, 2004. B. Approval of Minutes of the Special Meeting of April 8, 2004. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the Minutes of the Special Meeting of April 8, 2004. 1 COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF MARCH 19, 2004. COMMISSION APPROVED THE MINUTES OF THE SPECIAL MEETING OF APRIL 8, 2004. V , South Bend Redevelopment Commission Regular Meeting —May 7, 2004 %0�1 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted May 7, 2004 for approval. FUND 305 SBCDA 2003 BOND Danch Hamer & Associates, Inc. $ 1,250.00 Weaver Boos Consultants, LLC 354.00 Kone, Inc. 168,453.00 Nationwide 1,328.00 Kaser - Spraker Construction, Inc. 34,261.36 Sabre Demolition Corp. 171,500.00 324 FUND - AIRPORT FM Stone Commercial 3,374.50 Blackthorn Golf Club 2,650.00 R. E. Pitts & Associates 1,500.00 Sopko, Nussbaum & Inabnit 26.57 Wayne Baney 2,500.00 414 SAMPLE -EWING GENERAL Baker General Maintenance 300.00 Plews Shadley Racher & Braun 6,006.23 CA Studios 1,545.00 Crumlish & Crumlish Architects, Inc. 1,900.00 420 FUND TIF DISTRICT - SBCDA GENERAL Hill's True Value Hardware 9.36 AEP 811.43 SBC 29.21 David J. Sassano 1,500.00 AEP 552.31 CB Richard Ellis 200.75 C & S Service, Inc. 60.00 City Of South Bend 2,022.06 L I t South Bend Redevelopment Commission IL Regular Meeting —May 7, 2004 3. APPROVAL OF CLAIMS (CONT.) Stuard & Associates Ziolkowski Construction 424 FUND TIF SBCDA - BUILDING OPERATIONS Mikolajewski & Associates, Inc. FUND 428 AIRPORT 2003 BOND The Troyer Group Mr. Hunt inquired about the Sabre Demolition Corporation claim in the about of $171,500 and the Kone, Inc. claim in the amount of $168,453. Mr. Rock reported that the Sabre Demolition claim is related to the demolition of the St. Joseph & Jefferson parking structure. Mr. Williams reported that the Kone, Inc. claim is related to elevator repairs within the parking garages. Mr. Rock noted that the contract with Kone, Inc. for elevator repairs, at both the Wayne Street and Main & Colfax garages, was reviewed and approved by the City Engineering Department. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted May 7, 2004, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. [A 3 900.00 95,036.10 2,794.68 13,590.00 $ 112,320.78 COMMISSION APPROVED THE CLAIMS SUBMITTED MAY 7, 2004, AND ORDERED THE CHECKS TO BE RELEASED. THERE WERE NO COMMUNICATIONS. South Bend Redevelopment Commission Regular Meeting —May 7, 2004 5. OLD BUSINESS A. Clarification of Commission record related to Contract for Sale of Land for Private Development between the South Bend Redevelopment Commission and The Woodwind & The Brasswind. (Parcels 9B & 13B, U.S. 31 Industrial Park) Mr. Rock reported that the property recently sold to The Woodwind & The Brasswind were Parcels 9B and 13B located within the U.S. 31 Industrial Park. At the Redevelopment Commission Meeting of April 16, 2004, the parcels were erroneously referred to as Parcels 9A and 13A, although the April 16, 2004 agenda correctly referenced Parcels 9B and 13B in the US 31 Industrial Park. ILUpon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission clarified the record related to Contract for Sale of Land for Private Development between the South Bend Redevelopment Commission and The Woodwind & The Brasswind. Mr. Faccenda abstained from the vote. 6. NEW BUSINESS A. South Bend Central Development Area (1) Commission approval requested for Management Agreement by and between the City of South Bend and Ampco System Parking. (225 S. Main, former 1" Source Lot) Mr. Williams reported that the parking lot located at 225 S. Main Street has been in C 4 COMMISSION CLARIFIED THE RECORD RELATED TO CONTRACT FOR SALE OF LAND FOR PRIVATE DEVELOPMENT BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE WOODWIND & THE BRASSWIND. MR. FACCENDA ABSTAINED FROM THE VOTE. South Bend Redevelopment Commission ILI Regular Meeting —May 7, 2004 6. NEW BUSINESS A. South Bend Central Development Area (1) continued... operation since January 1, 2004. Submitted for Commission approval is a Parking Management Agreement between the City of South Bend and Ampco System Parking. Staff recommends approval of the Management Agreement, retroactive to January 1, 2004, subject to final approval of legal counsel. Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission approved a Management Agreement by and between the City of South Bend and Ampco System Parking, subject to final approval by legal counsel. (225 S. Main, former Is' Source Lot) (2) Commission approval requested for Resolution No. 2052 relating to acquisition of properties within the South Bend Central Development Area by eminent domain. (209 Colfax & adjacent lot, 230 -237 Sycamore & adjacent lot, 228 Sycamore) Mr. Mathia reported that Resolution No. 2052 sets the purchase price, and authorizes offers to be made, for five (5) properties in the South Bend Central Development Area. Two (2) of the properties are identified by tax key numbers 18 -5003 -0056 and 18 -5003 -0058. They are contiguous and located at 209 Colfax Street (commonly referred to as the Rink A COMMISSION APPROVED A MANAGEMENT AGREEMENT BY AND BETWEEN THE CITY OF SOUTH BEND AND AMPCO SYSTEM PARKING, SUBJECT TO FINAL APPROVAL BY LEGAL COUNSEL. (225 S. MAIN, FORMER 1 hT SOURCE LOT) South Bend Redevelopment Commission Regular Meeting —May 7, 2004 6. NEW BUSINESS A. South Bend Central Development Area (2) continued... Building). These properties were put on the acquisition list by Resolution No. 2029 approved by the Commission February 20, 2004. The other three (3) properties are identified by tax key numbers 18 -5003 -0059, 18 -5003- 0060.01 and 18 -5003- 0059.01 and are located along the east side of Sycamore Street. Those properties were added to the acquisition list by Resolution No. 1843 approved by the Commission September 7, 2001. Acquisition of the properties will assist in achieving the goals of the South Bend Central Development Area Development Plan and, more particularly, the objectives for further development on the East Bank. Staff recommends approval of Resolution No. 2052. Mr. Hunt asked if these were the final pieces of property to be acquired within the area around Sycamore Street. Mr. Mathia responded that there is one (1) more property still being negotiated. Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 2052 relating to acquisition of properties within the South Bend Central Development Area by eminent domain. (209 Colfax & adjacent lot, 230 -237 Sycamore & adjacent lot, 228 Sycamore) COMMISSION APPROVED RESOLUTION NO. 2052 RELATING TO ACQUISITION OF PROPERTIES WITHIN THE SOUTH BEND CENTRAL DEVELOPMENT AREA BY EMINENT DOMAIN. (209 COLFAX & ADJACENT LOT, 230 -237 SYCAMORE & ADJACENT LOT, 228 SYCAMORE South Bend Redevelopment Commission Regular Meeting —May 7, 2004 6. NEW BUSINESS A. South Bend Central Development Area (3) Commission approval requested for Resolution No. 2055 adopting certain findings related to property located at 305 East Colfax Street and approving the temporary use of 305 East Colfax Street by East Race Fire Arts, LLC. Mr. Mathia requested that, due to its length, the staff report relating to Resolution No. 2055 be incorporated into the minutes and highlighted the report as follows: An artists group, East Race Fire Arts (ERFA), has requested temporary use of the property located at 305 East Colfax Street (commonly known as the PAC Building) which the Commission acquired in 2003. It is the Commission's intent to demolish the building and construct a parking facility that would complement Holladay Corporation's planned development on the old Wharf site. In the interim, some of the benefits of allowing use of the PAC Building by ERFA would be postponed demolition, maintenance of the property and building, and added vitality to the area. Staff recommends approving the temporary use of the property by East Race Fire Arts, a subsidiary of Sculptural Arts, LLC. Ms. Greene advised that because of the unusual circumstances being asked of the Commission with respect to Commission owned property, Resolution No. 2055 has been prepared which adopts certain findings related to the temporary use of the building 7 South Bend Redevelopment Commission Regular Meeting —May 7, 2004 6. NEW BUSINESS A. South Bend Central Development Area (3) continued... by ERFA. The findings include the fact that the property, in its current condition, is not suitable for commercial leasing, but for significant financial investment by the Commission. The property is not going to be used as a commercial tenancy; therefore, the Commission is not pursuing this as a standard lease of property, and as such, is not obtaining appraisals for the fair market use of the property. The use of the property is temporary and the recommendation, which is incorporated in Resolution No. 2055, is that the ERFA undertake the assumption of liability for the premises, including any repairs needed for suitable occupancy on a temporary basis. The use can be terminated by the Commission upon written notification to ERFA. ERFA will be required to provide proof of insurance naming the Redevelopment Commission as co- insured. Mr. Hunt inquired about the time factor related to written notification of use termination. Ms. Greene advised that Resolution No. 2055 authorizes legal counsel to prepare the necessary documentation consistent with the resolution and also authorizes the Redevelopment President or Vice President and Secretary to execute the required documents. L 8 South Bend Redevelopment Commission ILI Regular Meeting —May 7, 2004 6. NEW BUSINESS A. South Bend Central Development Area (3) continued... Mr. Mathia noted that the termination notice would include a 30 to 60 day notification period. Mr. Hunt asked if ERFA understands that today's action is not the Commission's long range plan for the use of the PAC property and there will be no relocation costs related to termination of use. Mr. Mathia responded that in discussions with ERFA the terms and conditions of the temporary property use were made clear. Ms. Jones inquired as to the willingness of ERFA to donate artistic services to the City of South Bend. Mr. Mathia replied that preliminary discussions had taken place regarding a trade -in -kind for sculptures to enhance the downtown area. Mr. Faccenda stated that a letter from ERFA, or a representative, incorporating its understanding of the details negotiated with staff should be obtained for our records. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 2055 adopting certain findings related to property located at 305 East Colfax Street and approving the temporary use of 305 East Colfax Street by East Race Fire Arts, LLC. Vol, COMMISSION APPROVED RESOLUTION NO. 2055 ADOPTING CERTAIN FINDINGS RELATED TO PROPERTY LOCATED AT 305 EAST COLFAX STREET AND APPROVING THE TEMPORARY USE OF 305 EAST COLFAX STREET BY EAST RACE FIRE ARTS, LLC. South Bend Redevelopment Commission IL Regular Meeting —May 7, 2004 6. NEW BUSINESS A. South Bend Central Development Area (4) Commission approval requested for proposal for professional services in the South Bend Central and Sample Ewing Development Areas. (Appraisal services, various properties within the Sample - Lincolnway Triangle) Mr. Williams reported that as part of a continued process to acquire property in the Sample - Lincolnway triangle, staff is requesting the Commission approve appraisal services on four (4) parcels located in the acquisition area. Two appraisals are required to establish area property values. Two (2) proposals were received and the information is as follows: Jerome E. Michaels, MAI $4,800 R. E. Pitts & Associates $3,450 Staff recommends accepting the proposals from Jerome E. Michaels, MAI and R. E. Pitts & Associates. Mr. Hunt asked what the purpose was for the Commission to acquire the properties. Ms: Greene responded that the properties are not being acquired. A study is being conducted to establish the value of property in the Sample - Lincolnway triangle area. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for professional services in the South Bend 10 South Bend Redevelopment Commission IL Regular Meeting —May 7, 2004 6. NEW BUSINESS A. South Bend Central Development Area (4) continued... Central and Sample Ewing Development Areas and authorized staff to retain Jerome E. Michaels, MAI and R. E. Pitts & Associates based on the scope of services and fee proposed. (Appraisal services, various properties within the Sample - Lincolnway Triangle) B. Sample -Ewing Development Area (1) Commission approval requested for Resolution No. 2053 approving and authorizing the execution of an Agency Agreement by and between the South Bend Redevelopment Commission and the City of South Bend, Indiana, Board of Public Works relating to the Studebaker Area A Redevelopment Project (Sample - Ewing Development Area). Mr. Laurent reported that Resolution No. 2053 authorizes execution of an Agency Agreement allowing the Board of Public Works (BPW) to act as an agent for the Commission regarding matters related to the Studebaker Area A redevelopment project. This includes the properties known as the South Bend Stamping Plant, South Bend Lathe, Huckins Tool & Die and Underground Pipe and Valve. Resolution No. 2053 allows the BPW to place projects out for bid as well as award contracts and proposals. Resolution No. 2053 is directly in line with the Agency Agreement that 11 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL AND SAMPLE EWING DEVELOPMENT AREAS AND AUTHORIZED STAFF TO RETAIN JEROME E. MICHAELS, MAI AND R. E. PITTS & ASSOCIATES BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (APPRAISAL SERVICES, VARIOUS PROPERTIES WITHIN THE SAMPLE - LINCOLNWAY TRIANGLE) South Bend Redevelopment Commission IL Regular Meeting —May 7, 2004 6. NEW BUSINESS B. Sample -Ewing Development Area (1) continued... currently exists between the Commission and the BPW regarding the Oliver Plow Works redevelopment project. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2053 approving and authorizing the execution of an Agency Agreement by and between the South Bend Redevelopment Commission and the City of South Bend, Indiana, Board of Public Works relating to the Studebaker Area A Redevelopment Project (Sample - Ewing Development Area). 2 Commission approval requested for proposal for professional services in the Sample -Ewing Development Area. (Engineering services, former Oliver Plow Works #2 Forge Shop) Mr. Rock requested that Item 6.B.(2) be withdrawn. There were no objections and the Commission withdrew Item 6.B.(2). C. Airport Economic Development Area (1) Staff report on disposition of property in the Airport Economic Development Area. (Lot 40, Blackthorn Corporate Office Park) Mr. Rock reported that Crescent Michiana Properties III, LLC submitted a proposal for Lot 40 in the Blackthorn Corporate Office 12 COMMISSION APPROVED RESOLUTION NO. 2053 APPROVING AND AUTHORIZING THE EXECUTION OF AN AGENCY AGREEMENT BY AND BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE CITY OF SOUTH BEND, INDIANA, BOARD OF PUBLIC WORKS RELATING TO THE STUDEBAKER AREA A REDEVELOPMENT PROJECT (SAMPLE -EWING DEVELOPMENT AREA). COMMISSION WITHDREW ITEM 6.B.(2). South Bend Redevelopment Commission Regular Meeting —May 7, 2004 6. NEW BUSINESS C. Airport Economic Development Area (1) continued... Park. The proposed project consists of a 27,000 sq. ft. facility which will compliment the existing Citigroup building. At its meeting on April 16, 2004, the Commission approved the concept of the development project; however, negotiations continued with respect to purchase price per acre. Crescent Michiana Properties has agreed to purchase the property for $55,000 per acre. Mr. William Panzica, representing Crescent Michiana Properties III, asked the Commission if the right of early entry was also approved. Mr. Rock replied that an indemnification agreement would be required. Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved the sale of property in the Airport Economic Development Area and authorized an agreement of early entry pending the execution of legal documents. (Lot 40, Blackthorn Corporate Office Park) (2) Commission approval requested for purchase of property within the Blackthorn Corporate Office Park in the Airport Economic Development Area. (property south of Fiserv) In March 1993, the Redevelopment Commission executed an agreement with the Airport Authority to sell approximately 13 COMMISSION APPROVED THE SALE OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND AUTHORIZED AN AGREEMENT OF EARLY ENTRY PENDING THE EXECUTION OF LEGAL DOCUMENTS. (LOT 40, BLACKTHORN CORPORATE OFFICE PARK) South Bend Redevelopment Commission Regular Meeting —May 7, 2004 6. NEW BUSINESS C. Airport Economic Development Area (2) continued... 26 acres of property located in the Blackthorn Corporate Office Park owned by the Authority. This agreement terminated in February 2000. Efforts were made by staff to negotiate an extension to the agreement; however, the negotiations were unsuccessful and the agreement was not renewed. While the agreement was in effect, the Commission sold property to Trinity Health and gave Trinity the first right of refusal on two (2) acres of land located to their south for future parking. These two (2) acres IL reverted back to the Airport Authority in 2000 when the agreement terminated. Fisery is currently moving into the former Trinity Health building and additional property is required to accommodate company needs. Staff is requesting the Commission purchase the two (2) acres from the Airport Authority for the agreed upon price of $35,000 per acre. Ms. Greene noted that the present transaction is directly related to the previous agreement between the Airport Authority and the Redevelopment Commission that expired prior to the Commission exercising its acquisition of the property in question. Since the agreement has expired, staff is asking the Commission to purchase the two (2) acres of land from the Airport Authority. As a transfer of property from one governmental entity to another, Airport Authority is agreeable to a purchase price of I' 14 South Bend Redevelopment Commission Regular Meeting —May 7, 2004 6. NEW BUSINESS C. Airport Economic Development Area (2) continued... $35,000 an acre, which is well below the current market values in the area of $55,000 per acre. Commission approval of the purchase requires a finding by the Commission that the price is reasonable and acquisition is necessary to further the Airport Economic Development Area Development Plan. Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission approved the purchase of property within the Blackthorn Corporate Office Park in the Airport Economic Development Area. (property south of Fiserv) 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 There was no business in the South Side Development Area. G. Northeast Neighborhood Development Area (1) Filing of Resolution No. 2054 amending IL the Northeast Neighborhood Development 15 COMMISSION APPROVED THE PURCHASE OF PROPERTY WITHIN THE BLACKTHORN CORPORATE OFFICE PARK IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (PROPERTY SOUTH OF FISERV) THERE WAS NO BUSINESS IN THE SOUTH BEND MEDICAL SERVICES DISTRICT. THERE WAS NO BUSINESS IN THE WEST WASHINGTON -CHAMN DEVELOPMENT AREA. THERE WAS NO BUSINESS IN THE SOUTH SIDE DEVELOPMENT AREA. South Bend Redevelopment Commission IL Regular Meeting —May 7, 2004 6. NEW BUSINESS G. Northeast Neighborhood Development Area (1) continued... Area Development Plan and setting a Public Hearing for May 21, 2004 at 10:00 a.m. Ms. Hughes reported that the Northeast Neighborhood Development Area Development Plan will be amended by Resolution No. 2054 which adds two (2) properties to the acquisition list. Both properties are proposed for acquisition relative to plans for improvements to Fredrickson Park. The properties are identified as follows: ► Tax Key Number 18 -5102- 358901 1340 South Bend Avenue Sears Warehouse Building Tax Key Number 18 -5102 -3598 1405 E. Howard Street Donald and Jeanette McCarty, owners Funds have been allocated in the City CIP budget for the purchase of these properties. The public hearing on Resolution No. 2054 will be set for Friday, May 21, 2004 at 10:00 a.m. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission accepted for filing Resolution No. 2054 and set a public hearing on Resolution No. 2054 for 10:00 a.m., May 21, 2004 at a Regular Meeting of the Redevelopment Commission. L, 16 COMMISSION ACCEPTED FOR FILING RESOLUTION No. 2054 AND SET A PUBLIC HEARING ON RESOLUTION NO. 2054 FOR 10:00 A.M., MAY 21, 2004 AT A REGULAR MEETING OF THE REDEVELOPMENT COMMISSION. South Bend Redevelopment Commission Regular Meeting —May 7, 2004 6. NEW BUSINESS H. Other (1) Commission approval requested for proposal for professional services for property located at 23977 Brick Road. (Appraisal update) Mr. Williams reported that staff is requesting approval for updates to previously completed appraisals on property located at 23977 Brick Road. The property is a voluntary acquisition and is one of four (4) properties which are entirely surrounded by industrial uses. The original appraisals were completed by Jerome E. Michaels, MAI and R. E. Pitts & Associates. The cost for updating the appraisals is $1,500 each. Staff recommends accepting ILI the proposals from Jerome E. Michaels, MAI and R. E. Pitts & Associates. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for professional services and authorized staff to retain Jerome E. Michaels, MAI and R. E. Pitts & Associates based on the scope of services and fee proposed. Ms. Greene requested that an additional item be added to the agenda under Other business. The item will be 611. (2) and relates to correspondence addressed to the Commission by Robert W. Hunt. (2) Mr. Robert W. Hunt is requesting that the Commission accept his resignation as President of the Redevelopment Commission effective immediately. Mr. Hunt is also requesting to remain on the Redevelopment Commission in the capacity as a Member. 17 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES AND AUTHORIZED STAFF TO RETAIN JEROME E. MICHAELS, MAI AND R. E. PITTS & ASSOCIATES BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. South Bend Redevelopment Commission Regular Meeting —May 7, 2004 6. NEW BUSINESS H. Other (2) continued... Ms. Greene advised that the Commissioners have received prior notice of Mr. Hunt's intended resignation as President of the Redevelopment Commission. The By -Laws of the Redevelopment Commission state that "Should the office of President or Vice President become vacant, the Commission shall elect a successor from its membership at the next Regular Meeting and the election will be for the unexpired term of said office." At the request of Mr. Hunt and by unanimous approval of all Commissioners, a special election could be held immediately. ILThe Commission voted unanimously to accept the resignation of Mr. Robert W. Hunt as President of the Redevelopment Commission and to hold a special election immediately. 7. ELECTION OF OFFICERS Mr. Hunt nominated Ms. Marcia Jones to serve as President of the South Bend Redevelopment Commission. The nomination was seconded by Mr. Faccenda. There were no further nominations. The vote being unanimous, Ms. Marcia I. Jones was elected President for the remaining 2004 term. Mr. Hunt nominated Mr. Philip Faccenda to serve as Vice - President of the South Bend Redevelopment Commission. The nomination was seconded by Mr. Kahn. There were no further nominations. The vote being unanimous, Mr. Philip J. Faccenda, Sr. was elected Vice - President for the remaining 2004 term. W. COMMISSION VOTED UNANIMOUSLY TO ACCEPT THE RESIGNATION OF MR. ROBERT W. HUNT AS PRESIDENT OF THE REDEVELOPMENT COMMISSION AND TO HOLD A SPECIAL ELECTION IMMEDIATELY. ELECTION OF OFFICERS South Bend Redevelopment Commission Regular Meeting —May 7, 2004 7. ELECTION OF OFFICERS (CONT.) Mr. Matt Kahn was appointed by Ms. Jones to serve as Secretary of the South Bend Redevelopment Commission for the remainder of the 2004 term. 8. PROGRESS REPORTS Mr. Rock welcomed Ms. Sharon Kendall, the new South Bend Executive Director of Community and Economic Development. Mr. Rock reported the following progress: ► The closing on The Woodwind and The Brasswind property is complete. The proposed project consists of the construction of a 200,000 sq. ft. building. ► Construction has begun on Olive Road which is being expanded to four (4) lanes to coincide with the new bridge completed in 2003. Mr. Steve Cooreman will be hosting an Open House at the Villas at Blackthorn tonight, May 7, 2004. The Commission is invited to join other City officials for an evening of wine and jazz. 9. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for May 21, 2004 at 10:00 a.m. 10. 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 10:35 a.m. 19 PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT South Bend Redevelopment Commission Regular Meeting —May 7, 2004 MaLcia I. Jones, Presi 20 Donald E. Inks, Director SOUTH B Community & Economic Development 1865 1200 County -City Building, 227 west Jefferson, South Bend, Indiana 46601 -1830 ♦ Phone 574/235 -9371 ♦ Fax 574/235 -9021 To: Redevelopment Commission From: Bob Mathia ' l Subject: P.A.C. Graphic Building Date• May 7, 2004 Last year, the Redevelopment Commission acquired the P.A.C. Graphic Building ( "PAC Building ") located at 305 East Colfax ( "Property "). The Commission's intent is to demolish the building and constrict a parking lot that would complement Holladay Corporation's planned development on the old Wharf site in addition to other developments in the area such as the Commerce Center. While preparing plans for the PAC Building's demolition, a group of artists approached Staff with a request to use the PAC Building for artist studios. The group is newly forming and seeks to establish a cooperative -based studio for themselves in the downtown area. At Staff s suggestion, the group looked at the Marycrest Building and Union Station as alternative locations. They also looked at a third facility near the Center for History. For various reasons they rejected all of those sites and have renewed their request to use the PAC Building for the following reasons: (1) the building fits their needs well; (ii) it is large enough to acconlnnodate the group; (iii) it is equipped with sufficient heavy duty utility service to meet their needs (they are sculptures and potters that use kilns and a foundry); and (iv) it has a glassed -in front where a gallery could be set up. The artists have been moving quickly with their organizational efforts. They have chosen a name, "East Race Fire Arts" ( "ERFA "), which is a subsidiary of Sculptural Arts, LLC. They are in the process of writing by -laws for the organization, preparing a five (5) year business plan and have opened a bank account. They intend to submit a formal proposal to the Commission to use the PAC Building and they will include the by -laws and the five (5) year plan in their proposal. In addition, they are in the process of contacting members of the community for support. For example, they have already gotten Doug Hunt and Holladay Corp. to help with inspecting the building and preparing cost estimates for repairs. They have also contacted Charlie Hays and others for possible financial support and they have invited Common Council members Roland Kelly and Ann Puzzello to their meetings. The Redevelopment Commission acquired the Property with the intent of demolishing the PAC Building in order to carry out and complement future development projects which remains the primary objective for the Property. However, delays in the Water's Edge Project and the Commission's involvement and investment in other projects in the South Bend Central Development Area have led Staff to conclude that it is advisable to delay demolition of the PAC Building at the present time. „ „ pdm, a,, ti „pd What We Do Today Makes A Difference! l: of believe that the PAC Staff does n Building, in its g, p resent condition, is suitable for use as a rental property without significant financial investment by the Commission. As such, Staff has not obtained any appraisals to determine the rental value of the Property. During the period of time pending demolition of the PAC Building, the Commission would be required to seal the PAC Building in order to ensure that the Property does not become a public nuisance and invite tresspass. However, even if the PAC Building is vacant and sealed, the Commission would be required to make certain monthly expenditures in order to ensure that the Property does not pose an unsafe condition for the community. Therefore, Staff is recommending that the Commission permit ERFA to temporarily use the Property until such time as the Commission determines to demolish the PAC Building and proceed with development of the Property. Staff is requesting that the Commission approve temporary use of the PAC Building by ERFA subject to: (1) ERFA's submission of a five (5) year business plan and organization documents; (2) execution of an agreement between the Commission and ERFA in a form acceptable to legal counsel providing for the terms of said use. Staff further recommends that any agreement include language expressly noting the that ERFA's use of the Property is temporary and may be terminated by the Commission upon written notification in keeping with the Commission's primary objective for this Property which is demolition of the structure to accommodate a larger development project. As consideration for the temporary use of the Property, Staff is also recommending that ERFA be responsible for cleaning and maintaining the Property during its use. Staff believes that the addition of ERFA to the East Bank Area, even on a temporary basis, will contribute greatly to achievement of the Commission's overall goal of establishing the downtown as an entertainment and cultural center. Currently, the area around the PAC Building is deserted with the three corners of the "T" intersection of Colfax and Sycamore all vacant. The former Wharf site is located on the south side and the Rink and PAC Buildings are on the two north corners. Permitting ERFA to use the PAC Building on a temporary basis will benefit the community by bringing life and vitality back to the area which is currently a problem for existing businesses. For example, Macri' s Restaurant recently cut back on its evening hours due to a lack of customers in the evening resulting in part from a lack of other attractions in the area. ERFA is comprised mainly of part-time artists who work at normal jobs during the day and practice their craft at night. They have plans to establish a classroom in the building for art classes, open an art gallery and invite other artists from outside the area for public showings all of which will draw people to the area in addition to the artists themselves. ERFA has also suggested that it may be willing to donate certain artwork to the community in exchange for the opportunity to utilize the PAC Building. Staff is requesting the Commission's approval of ERFA's temporary use of the Property consistent with Staff's recommendations. Legal counsel has prepared a Resolution consistent with Staff's recommendation. H Wpdaw an 8 .pd What We Do Today Makes A Difference! :4 RESOLUTION NO. 2055 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION ADOPTING CERTAIN FINDINGS RELATED TO PROPERTY LOCATED AT 305 EAST COLFAX STREET AND APPROVING THE TEMPORARY USE OF 305 EAST COLFAX STREET BY EAST RACE FIRE ARTS, LLC WHEREAS, the South Bend Redevelopment Conunission is the owner of certain real property and improvements located at 305 East Colfax Street ( "Property ") ii the South Bend Central Development Area ( "Area "), said property and improvements being more commonly known as the fonner P.A.C. Graphic Building ( "PAC Building "); and WHEREAS, the Coinimissionn acquired the Property in accordance with the South Bend Central Development Area Development Plan ( "Development Plan ") and intends to demolish the unprovements located on the Property to facilitate future development projects in furtherance of the Development Plan; and WHEREAS, the Commission does not anticipate demolition to occur until a undeteni ied future date and as such, acknowledges that the Property will remain vacant for an indefinite period of time which may detract from development of the Area and exacerbate the appearance of decline in the Area; and WHEREAS, until such time as the PAC Building is demolished, the Connilission believes that the Property will likely deteriorate and the Commission would be required to expend certain funds ii order to maintain the PAC Building in a condition that is not injurious to the health, safety and welfare of the general public; and WHEREAS, East Race Fire Arts ( "ERFA "), a subsidiary of Sculptural Arts, LLC, is an organization consisting of several artists and ERFA is in need of a facility suitable for use as artists' studios and for the display of art work; and WHEREAS, ERFA has requested the temporary use of the Property for its artistic endeavors and in consideration thereof is willing to undertake clean -up and nninor repair of the Property; and WHEREAS, ERFA has expressed a willingness to donate its artistic services and /or dedicate artwork to the conntnunity in exchange for the temporary use of the Property; and WHEREAS, the Commission believes that ERFA's use and occupancy of the Property will ensure that the Property is being maintained in a safe condition pendiig demolition and may have the added benefit of bringing renewed interest to the Area as a catalyst for future development. THE COMMISSION NOW FINDS THAT: 1. The hereinabove described Property is not suitable for commercial leasing because it would require the Commission to make a significant financial investment in the Property and such use would be inconsistent with the Commission's plan for redevelopment of the Property. 2. It is unnecessary to -obtain appraisals as to the rental value of the Property because the Property is not suitable for commercial tenancy in its current condition. 3. The Conunission does not anticipate leasing the Property now or ill the foreseeable future and its sole intent for the Property is demolition of the improvements located thereon in order to facilitate future development projects in the Area in furtherance of the South Bend Central Development Area Development Plan. 4. The Connnission believes that any short or long teen lease of the Property would be inconsistent with its intended use of the Property. 5. The Commission believes that the temporary use of the Property by ERFA will help to ensure that the Property is suitably maintained until such time as the Commission proceeds with its intended demolition. b. The purposes for which ERFA intends to utilize the Property on a temporary basis may help to spur renewed interest ill the Area and thereby facilitate future econnonnic development of the Area. 7. Permitting the temporary use of the Property by ERFA will provide the Commission with the nnaxunum flexibility to schedule demolition of the Property ill the future. S. Temporary use of the Property by ERFA will not innpede iunplementation of the Development Plan and will best serve the interest of the comnnurnity from the standpoint of both human and econonnic welfare. NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Conlunission as follows: 1. In accordance with the terms and conditions expressed herein, the Conmission hereby grants East Race Fire Arts permission to utilize the Property on a temporary basis for artists' studios and for the display of art work subject to: a. ERFA's agreement to undertake clean -up and minor repair of the Property; and 2 14 b. ERFA's agreement to assume liability for acts and omissions related to ERFA's temporary use of the Property which may result in a claun against the City of South Bend or the Commission and ERFA's further agreement to indemnify and hold harmless the Commission for same; and C. ERFA's agreement to submit a proof of insurance to the Commission naming the Commission as co- insured; and d. Acknowledgment by ERFA that its use of the Property is temporary and may be terminated by the Commission upon written notification. 3. Legal counsel is hereby directed and authorized to prepared the necessary documentation effecting temporary use of the Property by East Race Fire Arts as described herein 4. The Commission hereby authorizes the President of the Co>ninission to execute and the Vice President or Secretary to attest any and all documents relating and necessary to effectuate the transaction as described hereon upon the advice of legal counsel. 5. This Resolution shall be. ui full force and effect after its adoption by the South Bend Redevelopment Commission. ADOPTED at a meeting of the South Bend Redevelopment Conunission held on May 7, 2004 at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. SOUTH BEND REDEVELOPMENT COMMISSION By: Its: ATTEST: By: Its: H: \WPData\Resolut ions\ RESCOMMI\Res2055_PACGraplucBldo ERFAgD40507.wpd