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HomeMy WebLinkAbout04-16-04 Redevelopment Commission Minutest A, LIM SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING April 16, 2004 10:00 a.m. Presiding: Robert W. Hunt, President 1. ROLL CALL Members Present: Member Absent: 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 Mr. Terry O'Brien, Economic Development Specialist Others Present: Mr. John Livingston, Legal Department Ms. Pam Paluszewski, Legal Department Mr. Thomas Panzica, Crescent Michiana Properties III Mr. William Panzica, Crescent Michiana Properties III Mr. John O'Brien, FM Stone Mr. Semion Lyandres, Residential Tax Abatement Mr. Philip Faccenda, Jr., Barnes & Thornburg Mr. Dennis Bamber, The Woodwind & Brasswind Mr. Tony Germano 2. APPROVAL OF MINUTES A. Commission approval of the Minutes of the Regular Meeting of January 16, 2004. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the Minutes of the Regular Meeting of January 16, 2004. 1 COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF JANUARY 16, 2004. C, South Bend Redevelopment Commission Regular Meeting —April 16, 2004 2. APPROVAL OF MINUTES (CONT.) B. Commission approval of the Minutes of the Regular Meeting of February 20, 2004. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the Minutes of the Regular Meeting of February 20, 2004. C. Commission approval of the Minutes of the Regular Meeting of March 5, 2004. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the Minutes of the Regular Meeting of March 5, 2004. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FEBRUARY 20, 2004. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF MARCH 5, 2004. Redevelopment Commission Claims submitted April 16, 2004 for approval. FUND 305 SBCDA 2003 BOND Weaver Boos Consultants, LLC Sabre Demolition Corporation Kaser - Spraker Construction, Inc. 324 FUND - AIRPORT Meridian Title Corporation Williams Aerial & Mapping C & S Service Abonmarche Consultants of Indiana, LLC Ken Herceg & Associates FM Stone JF New Danch Harper & Associates Lang, Feeney & Associates, Inc. H. S. Altman C 2 1,090.00 192,071.00 93,174.84 150.00 3,065.00 4,200.00 3,000.00 2,157.40 1,700.00 195.00 393.71 500.00 710.35 South Bend Redevelopment Commission Regular Meeting —April 16, 2004 3. APPROVAL OF CLAIMS (CONT.) Meadowbrook Golf Group, Inc. 7,000.00 Walsh & Kelly 133,897.53 Blackthorn Corporate Park 38,910.94 St. Joseph County Treasurer 909.94 414 SAMPLE -EWING Baker General Maintenance 200.00 Plews Shadley Racher & Braun 3,394.18 Schopf & Weiss 24.50 Danch, Hamer & Associates, Inc. 5,445.00 420 SBCDA EIS Environmental Engineers, Inc 900.00 SCI Alarm, Inc. 785.00 Lehman & Lehman, Inc. 12,932.63 Business Districts, Inc. 6,965.00 Ernest L. Bryant 17,994.00 Vern V. Planck & Mary Margaret Planck 24,006.00 SBD Reprographics 203.66 South Bend Tribune 95.20 CB Richard Ellis 903.00 Tri County News 75.65 David J. Sassano 1,500.00 Meridian Title Corporation 625.00 St. Joseph County Treasurer 183.61 Stuard & Associates, Inc. 2,000.00 FUND 424 Mikolajewski & Associates, Inc. 931.56 428 FUND AIRPORT 2003 BOND DLZ 58,903.00 c South Bend Redevelopment Commission Regular Meeting —April 16, 2004 3. APPROVAL OF CLAIMS (CONT.) FUND 619 BLACKTHORN Meadowbrook Golf Group, Inc. Mr. Rock reported that the Sabre Demolition Corporation claim in the amount of $192,071 was related to the St. Joseph & Jefferson parking structure. The Walsh & Kelly claim in the amount of $133,897.53 is for the extension of Ameritech Drive South related to the recently constructed hotel in Blackthorn. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the Claims submitted April 16, 2004, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS A. Sample -Ewing Development Area (1) Commission approval requested for concurrence with a Memorandum of Agreement between The City of South Bend and The Indiana State Historic Preservation Officer. (Former Oliver Plow Works, #2 Forge Shop) Mr. Laurent reported that the Memorandum of Agreement was originally tabled at the March 5, 2004 meeting. The Memorandum C, 4 30,000.00 651,192.70 COMMISSION APPROVED THE CLAIMS SUBMITTED APRIL 16, 2004, AND ORDERED THE CHECKS TO BE RELEASED. THERE WERE NO COMMUNICATIONS. G' 5 c South Bend Redevelopment Commission Regular Meeting —April 16, 2004 5. OLD BUSINESS A. Sample -Ewing Development Area (1) continued... of Agreement between the Redevelopment Commission and the Indiana State Historic Preservation Officer (SHPO) will serve to release the #2 Forge Shop at the former Oliver Plow Works property for demolition. The Commission agrees to document the structures prior to demolition and provide materials from that documentation to the SHPO. Staff has the majority of the documentation completed and will conclude the remaining tasks in -house at the first available opportunity. The Commission is requested to sign the Agreement as a concurring party together with the Historic Landmarks Foundation of Indiana and the Historic Preservation Commission. Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved a request for concurrence with a Memorandum of Agreement between The City of South Bend and The Indiana State Historic Preservation Officer. (Former Oliver Plow Works, #2 Forge Shop) Mr. Rock requested that Item 6.E. (7) be moved to the beginning of the agenda; followed by Item 6.E.(6). There were no objections and Items 6E. (7) and 6.E. (6) were moved to the beginning of the agenda. COMMISSION APPROVED A REQUEST FOR CONCURRENCE WITH A MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF SOUTH BEND AND THE INDIANA STATE HISTORIC PRESERVATION OFFICER. (FORMER OLIVER PLOW WORKS, #2 FORGE SHOP) ITEMS 6.E.(7) AND 6.E.(6) WERE MOVED TO THE BEGINNING OF THE AGENDA. South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS E. Airport Economic Development Area () Staff report on disposition of property in the Airport Economic Development Area. (Lot 40, Blackthorn Corporate Office Park) Mr. Rock reported that a proposal was submitted by Crescent Michiana Properties III, LLC for the purchase and development of Lot 40 in the Blackthorn Corporate Office Park. The parcel is 3.49 acres. The Developer, Crescent Michiana Properties III, proposes to begin construction of a 27,200 sq. ft. building within one year of the date of closing. The proposed building would be the same design type as the existing Associates / Citigroup building. Staff would work closely with the Developer to ensure the standard expected within the Corporate Park. A purchase price of $35,000 per acre was offered by the Developer. Staff recommends a purchase price of $55,000 per acre. Mr. Thomas Panzica, representing Crescent Michiana Properties III, thanked the Commission for moving its proposal to the top of the agenda. Mr. Panzica explained to the Commission that the original plan presented to the Redevelopment Commission approximately five (5) years ago, when Crescent I built a facility for Associates, entailed construction of a 68,000 sq. ft. building, employing 175 people. The facility is now owned by Citigroup, and the operation encompasses over 92,000 sq. ft., employs over 300 people L 6 South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS E. Airport Economic Development Area (7) continued... and processes more than one million pieces of mail and data output per day. When expansion of the building was necessary, Crescent Michiana I requested an additional 50 ft. parcel of property to the north for parking. The Commission was not willing at that time to sell only the 50 ft. parking parcel, so Crescent Michiana I acquired the entire site. Mr. Panzica further explained that Crescent Michiana I first looked at the possibility and opportunity of putting its current client on the remainder of the Citigroup expanded parking site. There were impediments: First, an existing American Electric Power easement through the site would bisect the building. Second, although the easement could be moved, it would add a month to the construction schedule which is unacceptable to the tenant. The South Bend operation has become extremely important to Citigroup. It is one of only three data output centers in the country. It is very feasible that Citigroup will have future needs requiring expansion of both the structure and parking facilities. Crescent Michiana III believes it is wise to reserve the adjacent land and maintain as much flexibility as possible to accommodate the needs of Citigroup, an important employer to the community. Mr. Panzica further reported that, having addressed these issues, Crescent Michiana III has submitted a proposal on IL 7 South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS E. Airport Economic Development Area (7) continued... Lot 40, intending to construct the same building. Mr. Panzica pointed out that it was the goal and desire of the developers and the Commission five (5) years ago of creating an office, service, technical, research and development type park on the north side of Nimtz Parkway. Crescent Michiana III is following the original vision and will be constructing a building that in every way will be as envisioned by the original plan. Mr. Panzica distributed a rendering of the proposed building to the Commission. It was noted that recently the issue of price per acre had become a factor in the negotiations with staff. Mr. Panzica requested that the Commission approve, in principle, favorably on the actual sale of Lot 40 to Crescent Michiana Properties III for development, with price negotiations to continue with staff. In addition, it was noted that when a price per acre was agreed upon, an early entry agreement would be required so that ground breaking could take place pending the execution of legal documents. Mr. Panzica thanked the Commission for its consideration. Mr. Hunt acknowledged that the Commission agrees with the development concept; however, the price per acre is obviously a point of concern. Ms. Greene explained that the Commission can make a determination whether to approve the concept of the project with price G8 South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS E. Airport Economic Development Area (7) continued... to be further negotiated, or if the Commission is standing firm, approve the proposed project at the $55,000 per acre price which is consistent with many of the other property sales in the Blackthorn area. The action taken is entirely at the Commission's discretion. Mr. Hunt asked for confirmation that recent sales of property in the Blackthorn area were, in fact, at $55,000 per acre. Mr. Rock responded that the statement was correct and the actual asking price for Lot 40 is $60,000 per acre. Mr. Panzica asked to address the issue of price and distributed an exhibit to the Commissioners obtained from www.loopnet.com. Viewed as a comparable site by Crescent Michiana Properties III, Mr. Panzica noted the sale price per acre of Lots 14 & 15 in Blackthorn West Business Park is approximately $40,000. It was indicated that the price of $55,000 per acre was based on a recent sale of a parcel in Blackthorn that was of smaller acreage and had frontage directly on the golf course. Whether buying land in Knollwood, or an industrial venue, or a business park venue, golf course views obviously increase the value of the lot. The same price for land on the other side of the street, which has a different designation of use, namely the support services side, is not necessarily a G9 South Bend Redevelopment Commission JL Regular Meeting —April 16, 2004 6. NEW BUSINESS E. Airport Economic Development Area (7) continued... valid comparison. In the Crescent Park, the users will not pay the rents that the tenants on the golf course are willing to. Therefore, to set the price at $55,000 per acre for the lot will essentially kill the deal. Crescent Michiana Properties III can not support the land costs from the rents it can get on the completed project. It will not be Class A office space. It will be a mixture of office and technical uses including truck docks, etc. that use up a lot of land. Mr. Panzica noted that the initial lot sold in Blackthorn was sold for $30,000 an acre, recognizing and stipulating that the market has moved since that time. Mr. Panzica proposed that the fair market value of Lot 40 should not be equivalent to the lots sold on the golf course. Mr. Hunt advised that the Commission takes the advice and values from a retained real estate company in the development business. Mr. Panzica expressed that Crescent Michiana Properties III is simply stating its point of view and the validity of its offer price as being fair. Mr. Hunt responded that the advice given to the Commission is that the market value of the property is currently $60,000 per acre. Ms. Greene inquired if the Commissioners had any questions regarding what action they are being asked to take. 10 South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS E. Airport Economic Development Area (7) continued... Mr. Hunt commented that a motion can be made to approve the concept of the project with the final price to be negotiated, but no ground breaking can take place until Commission acceptance and approval of the price. Ms. Greene clarified that the Commission has several options. First, the item can be tabled until the next meeting if the Commission requires more information. Second, the Commission can approve the concept with price to be negotiated, which will also require Commission approval at a separate meeting. Third, having heard evidence and factors submitted by the developer, the Commission may approve the project at a final sale price of $55,000 per acre. Lastly, the project can be rejected in its entirety. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the concept of a development project by Crescent Michiana Properties III in the Airport Economic Development Area subject to final property price negotiations. (Lot 40, Blackthorn Corporate Office Park) (6) Commission approval requested for Contract for Sale of Land for Private Development between the South Bend Redevelopment Commission and The Woodwind & The Brasswind. (Parcels IL 9B & 13B, U.S. 31 Industrial Park) 11 COMMISSION APPROVED THE CONCEPT OF A DEVELOPMENT PROJECT BY CRESCENT MICHIANA PROPERTIES III IN THE AIRPORT ECONOMIC DEVELOPMENT AREA SUBJECT TO FINAL PROPERTY PRICE NEGOTIATIONS. (LOT 40, BLACKTHORN CORPORATE OFFICE PARK) South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS E. Airport Economic Development Area (6) continued... Mr. Philip Faccenda, Jr. of Barnes & Thornburg introduced Mr. Dennis Bamber, President, of The Woodwind & The Brasswind and then addressed the Commission. Mr. Faccenda advised that the agreement before the Commission today is for the purchase of parcels 9A & 13A in the U.S. 31 Industrial Park, rather than 9B & 13B as indicated by the Commission agenda. Proposed construction consists of a 150,000 to 200,000 sq. ft. warehouse facility. The new facility will assist The Woodwind & The Brasswind with the expansion of its musical instruments mail order and Internet catalog business. It is estimated the facility will employ a minimum of twenty -five (25) new people with the potential for several more. A purchase price of $35,000 per acre, or $560,000 total for the property has been agreed upon and a site plan was previously submitted to the Commission. Upon a motion by Mr. Kahn, seconded by COMMISSION APPROVED A CONTRACT FOR SALE Ms. Jones and unanimously carried, the OF LAND FOR PRIVATE DEVELOPMENT BETWEEN Commission approved a Contract for Sale of THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE WOODWIND & THE Land for Private Development between the BRASSWIND. (PARCELS 9A & 13A, U.S. 31 South Bend Redevelopment Commission INDUSTRIAL PARK) and The Woodwind & The Brasswind. MR. PHILIP FACCENDA, SR. ABSTAINED FROM (Parcels 9A & 13A, U.S. 31 Industrial Park) THE VOTE. Mr. Philip Faccenda, Sr. abstained from the vote. 12 South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS (CONT.) A. Tax Abatements (1) Commission approval requested for Resolution No. 2050 approving an application for residential real property tax deduction for property located at 1105 Frances Street in the Northeast Neighborhood Development Area. (Semion and Natalia Lyandres) Mr. O'Brien reported that the petitioner proposes to develop a new single family home at 1105 Frances Street. The home will be built by either Rans Custom Builders or Snyder Custom Homes. The home will be 2,000 square feet with three or four bedrooms. The home will be built on a full basement with an attached garage. The estimated dollar value of the new construction will be $250,000. A review of the tax abatements previously granted finds that the petitioner has not received any previous residential tax abatements. The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed use. A review of the South Bend redevelopment designation areas finds that the property is in the Northeast Neighborhood Development Area; therefore, the abatement must be approved by the Redevelopment Commission. A review of the Tax Abatement Ordinance finds that the petitioner meets the qualifications for a five year residential tax abatement. Based on an estimated project cost of $250,000 the cpst of the tax abatement is as ILI follows: 13 N C9 A South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS A. Tax Abatements (1) continued... Mr. Semion Lyandres thanked the Commission for considering the tax abatement petition and is looking forward to joining the community members of the Northeast Neighborhood. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 2050 approving an application for residential real property tax deduction for property located at 1105 Frances Street in the Northeast Neighborhood Development Area. (Semion and Natalia Lyandres) (2) Commission approval requested for Resolution No. 2051 approving an application for real property tax deduction for property located at 5053 Ameritech Drive in the Airport Economic Development Area. ( Bamber, LLC for the benefit of Dennis Bamber, Inc. d /b /a The Woodwind and The Brasswind) 14 COMMISSION APPROVED RESOLUTION NO. 2050 APPROVING AN APPLICATION FOR RESIDENTIAL REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1105 FRANCES STREET IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. (SEMION AND NATALIA LYANDRES) Estimated taxes over five (5) years Without abatement $25,945.50 With 5 -yr abatement $20,592.85 Estimated cost of 5 -yr abatement $ 5,352.65 Mr. Semion Lyandres thanked the Commission for considering the tax abatement petition and is looking forward to joining the community members of the Northeast Neighborhood. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 2050 approving an application for residential real property tax deduction for property located at 1105 Frances Street in the Northeast Neighborhood Development Area. (Semion and Natalia Lyandres) (2) Commission approval requested for Resolution No. 2051 approving an application for real property tax deduction for property located at 5053 Ameritech Drive in the Airport Economic Development Area. ( Bamber, LLC for the benefit of Dennis Bamber, Inc. d /b /a The Woodwind and The Brasswind) 14 COMMISSION APPROVED RESOLUTION NO. 2050 APPROVING AN APPLICATION FOR RESIDENTIAL REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1105 FRANCES STREET IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. (SEMION AND NATALIA LYANDRES) South Bend Redevelopment Commission IL Regular Meeting —Apri l 16, 2004 6. NEW BUSINESS A. Tax Abatements (2) continued... Mr. O'Brien reported that in addition to the information provided by Mr. Faccenda, Jr. regarding The Woodwind and The Brasswind expansion project, staff will add the following: ► A review of tax abatements previously granted, finds that the petitioner has been granted one (1) previous tax abatement. ► The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. ► A review of the South Bend redevelopment designation areas finds that the property is located in the Airport Economic Development Area, which is a Tax Increment Allocation Area; therefore, the abatement must first be approved by the Redevelopment Commission. ► A review of the Tax Abatement Ordinance finds that the petitioner meets the qualifications for a nine (9) year real property tax abatement. Based on a total estimated project cost of $5,560,000 the cost of the tax abatement is as follows: IL. 15 Estimated taxes over nine (9) years Without abatement $1,519,164 With 9 -yr abatement 681,936 IL. 15 South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS A. Tax Abatements (2) continued... Estimated cost of 9 -yr abatement 837,228 Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 2051 approving an application for real property tax deduction for property located at 5053 Ameritech Drive in the Airport Economic Development Area. ( Bamber, LLC for the benefit of Dennis Bamber, Inc. d/b /a The Woodwind and The Brasswind) Mr. Philip Faccenda, Sr. abstained from the vote. Ms. Greene noted for the record that although Mr. Philip Faccenda, Sr. abstained from voting on Items 6.A.(2) and 6.E.(6) due to Mr. Philip Faccenda, Jr. representing the firm of Barnes & Thornburg, legal counsel sees no actual conflict of interest with the Commission. Commissioner Matt Kahn left the meeting at 10:31 a.m. B. Housing (1) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 1149 North Brookfield. (Mildred Franklin) 16 COMMISSION APPROVED RESOLUTION NO. 2051 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 5053 AMERITECH DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (BAMBER, LLC FOR THE BENEFIT OF DENNIS BAMBER, INC. D /B /A THE WOODWIND AND THE BRASSWIND) MR. PHILIP FACCENDA, SR. ABSTAINED FROM THE VOTE. South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS B. Housing (1) continued... Mr. Rock advised that the loan is in the amount of $4,850 and the grant is in the amount of $7,500. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved the Loan and Grant in accordance with the South Bend Home Improvement Loan Program for property located at 1149 North Brookfield. (Mildred Franklin) C. South Bend Central Development Area (1) Commission approval requested for Facility Management Agreement between Robert Bradley Associates, LLC d /b /a CB Richard Ellis and the City of South Bend. (Hotel LaSalle) Mr. Mathia reported that the Hotel LaSalle was acquired by the Redevelopment Commission on March 25, 2004. The previous owner, Downtown South Bend, Inc. (DTSB), employed CB Richard Ellis as property manager for the hotel. CB Richard Ellis has submitted a proposal to continue managing the property for the Commission. The proposal states the contract term will run from March 24, 2004 to April 30, 2004 and will then renew for one month periods unless cancelled by either party with a 30 -day written notice. The cost is $568.10 per month which is the same amount charged to DTSB for the past fourteen 17 COMMISSION APPROVED THE LOAN AND GRANT IN ACCORDANCE WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 1149 NORTH BROOKFIELD. (MILDRED FRANKLIN) South Bend Redevelopment Commission Regular Meeting —April 16, 2004 C 6. NEW BUSINESS C. South Bend Central Development Area (1) continued... months. The level of service to be provided also remains the same. The proposal will meet the Commission's need to oversee the property on an interim bases until a permanent use for the building is found, or until the decision is made on the kinds and level of management services required for holding the building long term. CB Richard Ellis is providing similar services for other Commission owned properties and has performed satisfactorily. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved a request for a Facility Management Agreement between Robert Bradley Associates, LLC d/b /a CB Richard Ellis and the City of South Bend. (Hotel LaSalle) (2) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Survey services, expansion descriptions & drawings) Mr. Mathia reported that the southeastern boundary of the South Bend Central Development Area must be expanded in order to complete certain obligations in the development agreement between the Redevelopment Commission and Underwriters Laboratories, Inc. (Environmental Health Labs). Wightman Petrie, Inc. has submitted a proposal to 18 COMMISSION APPROVED A REQUEST FOR A FACILITY MANAGEMENT AGREEMENT BETWEEN ROBERT BRADLEY ASSOCIATES, LLC D /B /A CB RICHARD ELLIS AND THE CITY OF SOUTH BEND. (HOTEL LASALLE) South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS C. South Bend Central Development Area (2) continued... review the map and legal description of the current boundary and prepare new ones which will describe the expanded boundary. The cost of the proposed work is $740. Staff recommends accepting the proposal from Wightman Petrie, Inc. and the Commission is requested to authorize funding up to a level of $850 to cover the cost of the service plus any materials and contingencies. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved the request for professional services in the South Bend Central Development Area and authorized staff to retain Wightman Petrie, Inc. based on the scope of services and fee proposed. (Survey services, southeastern boundary) (3) Commission approval requested for Letter of Agreement - Addendum #4 to Letter of Agreement Dated August 22, 2001 between the City of south Bend and Lehman & Lehman, Inc. (East Bank Planning Project) Mr. Mathia reported that the firm of Lehman & Lehman has been assisting the City with the development of what has become a major master planning effort for all of the East Bank. The work for the original planning effort was covered by a Letter of Agreement dated September 7, 2001. As planning got underway, the area 19 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN WIGHTMAN PETRIE, INC. BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (SURVEY SERVICES, SOUTHEASTERN BOUNDARY) South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS C. South Bend Central Development Area (3) continued... covered by the initial plan was greatly enlarged. The increase came about because of the inclusion of additional stakeholders, the identification of additional potential development projects and the realization that a unified vision for the total East Bank area was necessary in order to develop a Master Plan that would accurately address the issues and needs of any single part of the area. The fine of Lehman & Lehman has been invaluable in developing individual sub -parts of the Plan, working with interested individuals and organizations and in development of the Master Plan itself. i Addendum #4 to the original Letter of Agreement is intended to bring development of the Master Plan to completion. It includes provisions for assistance from Lehman & Lehman to first complete a final series of meetings with affected individuals and stakeholders from the East Bank, final drafting of the Master Plan, necessary subsequent meetings with government agencies to have the Plan formally adopted, meetings with City Departments to begin implementation of development projects under the Plan, and offer an Alternative to assist the City and DTSB with establishing a Business Improvement District that would generate revenue for both implementation of development efforts and assure their maintenance over the long term. Addendum #4 will extend the Letter of Agreement to December 2004 and provide IL� 20 South Bend Redevelopment Commission L Regular Meeting —April 16, 2004 6. NEW BUSINESS C. South Bend Central Development Area (3) continued... additional funding in the amount of $72,000. Total funding of the Letter of Agreement to date is $106,595. Staff recommends approval. Mr. Hunt instructed the staff to communicate extensively with all parties involved to gain community input and feedback on the Plan. Ms. Greene noted that the Master Plan is currently a draft and the City has not embraced the Plan as written. The Plan will be circulated, discussed and subject to comments, suggestions and changes. Ms. Jones asked if the stakeholders had a copy of the Master Plan. Mr. Mathia responded that the stakeholders have only parts of the Plan, thus the reason for the series of community meetings. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Letter of Agreement - Addendum #4 to Letter of Agreement Dated August 22, 2001 between the City of south Bend and Lehman & Lehman, Inc. (East Bank Planning Project) 21 COMMISSION APPROVED THE LETTER OF AGREEMENT - ADDENDUM #4 TO LETTER OF AGREEMENT DATED AUGUST 22, 2001 BETWEEN THE CITY OF SOUTH BEND AND LEHMAN & LEHMAN, INC. (EAST BANK PLANNING PROJECT) South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (1) Commission approval requested for Resolution No. 2048 related to acquisition of property in the Sample -Ewing Development Area by eminent domain. (718 E. Ohio Street) Mr. Williams reported the Resolution No. 2048 sets the offering price for property located at 718 E. Ohio Street within the Sample -Ewing Development Area. Staff obtained two separate appraisals with an average price of $42,750. The structure is currently vacant and acquisition at this time will eliminate potential future relocation costs. Mr. Hunt asked why the Commission was acquiring the property. Mr. Williams responded that property was being assembled for a proposed sports complex in the area that will compliment and expand South East Park. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 2048 related to acquisition of property in the Sample -Ewing Development Area by eminent domain. (718 E. Ohio Street) (2) Commission approval requested for proposal for professional services in the Sample -Ewing Development Area. (Architectural services, Oliver Industrial Park) 22 COMMISSION APPROVED RESOLUTION NO. 2048 RELATED TO ACQUISITION OF PROPERTY IN THE SAMPLE -EWING DEVELOPMENT AREA BY EMINENT DOMAIN. (718 E. OHIO STREET) South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS D. Sample -Ewing Development Area (2) continued... Mr. Laurent advised that staff has been working with a group composed of representatives from Rose Brick & Materials, Inc., Northern Indiana Center for History, Historic Landmarks Foundation of Indiana, the local chapter of the Hart-Parr /Oliver Collector's Association and the City of South Bend to create an Oliver Chilled Plow Works memorial in the Oliver Industrial Park. Crumlish & Crumlish Architects, Inc. was chosen by the parties to create the preliminary design of the memorial and associated park to be located on property owned by Rose Brick & Materials, Inc. Crumlish & Crumlish has submitted a proposal in the amount of $4,000. Hart-Parr /Oliver Collector's Association has pledged $1,000 towards the contract. Mr. Laurent noted that item #5, which addresses billings and payments, of the Terms and Conditions portion of the proposal will be stricken from the contract. Staff recommends accepting the proposal from Crumlish & Crumlish and requests a Commission contribution in the not -to- exceed amount of $3,000. Ms. Greene asked that the indemnification and limitation of liability language, addressed in item #8 of the Terms and Conditions portion of the contract, be presented to the Insurance Department to avoid contradiction of the City's immunities granted by Indiana state law. C 23 South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS D. Sample -Ewing Development Area (2) continued... 24 Upon a motion by Mr. Faccenda, seconded COMMISSION APPROVED THE REQUEST FOR by Ms. Jones and unanimously carried, the PROFESSIONAL SERVICES IN THE SAMPLE -EWING Commission approved the request for DEVELOPMENT AREA AND AUTHORIZED STAFF professional services in the Sample -Ewing TO RETAIN CRUMLISH & CRUMLISH BASED ON PROPOSED; THE SCOPE OF SERVICES AND FEE Development Area and authorized staff to SUBJECT TO REVIEW BY THE INSURANCE retain Crumlish & Crumlish based on the DEPARTMENT. scope of services and fee proposed; subject to review by the Insurance Department. (3) Commission approval requested for proposal for maintenance services on property located at 601 W. Broadway in the Sample -Ewing Development Area. IL (Former South Bend Stamping Plant) Mr. Laurent reported that Baker General Maintenance has been providing property maintenance and security services for the Commission owned former South Bend Stamping Plant. The current contract with Baker General Maintenance expired on April 14, 2004 and this proposal would extend the terms of that agreement through July 31, 2004 with the ability to renew monthly thereafter. The fee of $100 per week will remain the same. Staff recommends accepting the proposal from Baker General Maintenance. Upon a motion by Ms. Jones, seconded by COMMISSION APPROVED THE REQUEST FOR Mr. Faccenda and unanimously carried, the MAINTENANCE SERVICES IN THE SAMPLE -EWING Commission approved the request for DEVELOPMENT AREA AND AUTHORIZED STAFF maintenance services in the Sample -Ewing TO RETAIN BAKER GENERAL MAINTENANCE BASED ON THE SCOPE OF SERVICES AND FEE Development Area and authorized staff to PROPOSED. FORMER SOUTH BEND STAMPING retain Baker General Maintenance based on PLANT) the scope of services and fee proposed. (Former South Bend Stamping Plant) 24 South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (1) Commission approval requested to purchase maintenance equipment for Blackthorn Golf Course. (Greens aerator) Mr. Rock reported that two (2) proposals have been received to purchase a greens aerator for the Blackthorn Golf Course. It was noted that the equipment was approved by the Blackthorn Joint Committee and included in the annual budget for the golf course. The proposals are as follows: Burris Equipment $ 8,689.00 Birkey's $11,228.41 Staff recommends accepting the proposal from Burris Equipment in the amount of $8,689. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved the proposal from Burris Equipment to provide maintenance equipment in the Airport Economic Development Area. (Blackthorn Golf Course) (2) Commission approval requested to purchase maintenance equipment for Blackthorn Golf Course. (Rough rotary mower) Mr. Rock reported that three (3) proposals have been received to purchase a rough rotary mower for the Blackthorn Golf Course. It was noted that the equipment was I' 25 COMMISSION APPROVED THE PROPOSAL FROM BURRIS EQUIPMENT TO PROVIDE MAINTENANCE EQUIPMENT IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (BLACKTHORN GOLF COURSE) South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS E. Airport Economic Development Area (2) continued... approved by the Blackthorn Joint Committee and included in the annual budget for the golf course. The proposals are as follows: Burris Equipment $32,898.00 Birkey's $47,549.22 Kenney Outdoor Solutions $45,835.00 Staff recommends accepting the proposal from Burris Equipment in the amount of $32,898. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved the proposal from Burris Equipment to provide maintenance equipment in the Airport Economic Development Area. (Blackthorn Golf Course) (3) Commission approval requested to purchase maintenance equipment for Blackthorn Golf Course. (Turf tender) Mr. Rock reported that three (3) proposals have been received to purchase a turf tender for the Blackthorn Golf Course. It was noted that the equipment was approved by the Blackthorn Joint Committee and included in the annual budget for the golf course. The proposals are as follows: J. W. Turf, Inc. $ 9,302 Erb Equipment Company $10,200 Weingartz Golf & Turf $10,540 L41 26 COMMISSION APPROVED THE PROPOSAL FROM BURRIS EQUIPMENT TO PROVIDE MAINTENANCE EQUIPMENT IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (BLACKTHORN GOLF COURSE) South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS E. Airport Economic Development Area (3) continued... Staff recommends accepting the proposal from J. W. Turf, Inc. in the amount of $9,302. Ms. Jones asked if applicable taxes and delivery fees were included in the proposals. Mr. Rock replied that the quotes did not separately itemize taxes and delivery, and it appeared any such additional charges were included in the pricing. Mr. Hunt instructed staff to verify that the proposals submitted are accurate in respect to total pricing. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved the proposal from J. W. Turf, Inc. to provide maintenance equipment in the Airport Economic Development Area subject to confirmation that the proposal submitted is the lowest bid. (Blackthorn Golf Course) (4) Commission approval requested for well maintenance at the Blackthorn Golf Course. (Chemical cleaning) Mr. Rock reported that a memo was received from Mr. John Quickstad of Blackthorn Golf Course regarding the chemical cleaning of the irrigation pond well. Serviced and tested for efficiency every November, the annual tests are 27 COMMISSION APPROVED THE PROPOSAL FROM J. W. TURF, INC. TO PROVIDE MAINTENANCE EQUIPMENT IN THE AIRPORT ECONOMIC DEVELOPMENT AREA SUBJECT TO CONFIRMATION THAT THE PROPOSAL SUBMITTED IS THE LOWEST BID. (BLACKTHORN GOLF COURSE) South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS E. Airport Economic Development Area (4) continued... indicating a continuing loss of capacity. One (1) quote was solicited from Peerless Midwest, the only vendor in the area that performs this type of work. Peerless Midwest has performed yearly service on all of Blackthorn's pumps since 1994. In addition, Peerless Midwest has successfully completed numerous projects for the City of South Bend Water Works. Staff recommends accepting the proposal from Peerless Midwest in the amount of $8,500. Upon a motion by Ms. Jones, seconded by COMMISSION APPROVED THE PROPOSAL FROM Mr. Faccenda and unanimously carried, the PEERLESS MIDWEST TO PROVIDE CHEMICAL Commission approved the proposal from WELL CLEANING IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (BLACKTHORN GOLF Peerless Midwest to provide chemical well COURSE) cleaning in the Airport Economic Development Area. (Blackthorn Golf Course) (5) Commission approval requested for proposal for real estate acquisition services in the Airport Economic Development Area. (Bosch Campus Expansion Project) Mr. Rock reported that The Troyer Group was previously contracted to perform right - of -way acquisition for the re- routing of Bendix Drive. The Troyer Group has now submitted a proposal to perform similar services for a second phase of acquisition related to the Bosch Campus expansion. Competitive proposals were not solicited since familiarity with the ongoing project is IL 28 South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS E. Airport Economic Development Area (5) continued... a necessary priority. Troyer staff have been present at early neighborhood meetings and so bring continuity and efficiency to the project. Troyer has also established a working relationship with the Bosch campus planning consultants. The proposal submitted by Troyer to complete the property acquisition work is in the amount of $24,555 plus reimbursable services fees. Ms. Greene noted that in a letter dated March 5, 2004 from LeRoy Troyer and John Leszczynski to Jennifer Hughes there is a reference to the condemnation process and procedures within the area. Ms. Greene advised that the acquisition of property will be in the Airport Economic Development Area, and as such, condemnation is not a tool available to the Commission. Ms. Jones asked for an explanation of the 10% Reimbursable Multiplier. Ms. Greene responded that it presumably represents Troyer's 10% contingency, but that staff would clarify. Ms. Jones asked what the lump sum of $24,555 includes, if the reimbursables are billed separately. Mr. Rock replied that the base management fee covers services for title research, preparation of transfer documents, selection of appraisers, preparing offers, presenting 29 South Bend Redevelopment Commission IL Regular Meeting —April 16, 2004 6. NEW BUSINESS E. Airport Economic Development Area (5) continued... offers, negotiating offers, recording deeds and mortgage releases and acquisition certification. Ms. Greene commented that staff should ensure efforts were not being duplicated with regards to title work on the properties. The City has worked with Meridian Title in the past and secured a flat fee of $100 per parcel. If the City can receive a better price for title services, it may be advantageous to work with Troyer on reducing the cost of the proposed title research. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved the request for real estate acquisition services in the Airport Economic Development Area and authorized staff to retain The Troyer Group based on the scope of services and fee proposed subject to investigation of the title research fees. (Bosch Campus Expansion Proj ect) F. South Bend Medical Services District There was no business in the South Bend Medical Services District. G. West Washington- Chapin Development Area There was no business in the West Washington - Chapin Development Area. 30 COMMISSION APPROVED THE REQUEST FOR REAL ESTATE ACQUISITION SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN THE TROYER GROUP BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED SUBJECT TO INVESTIGATION OF THE TITLE RESEARCH FEES. (BOSCH CAMPUS EXPANSION PROJECT) THERE WAS NO BUSINESS IN THE SOUTH BEND MEDICAL SERVICES DISTRICT. THERE WAS NO BUSINESS IN THE WEST WASHINGTON- CHAPIN DEVELOPMENT AREA. South Bend Redevelopment Commission IL Regular Meeting —April 16, 2004 6. NEW BUSINESS (CONT.) H. South Side Development Area There was no business in the South Side Development Area. I. Northeast Neighborhood Development Area (1) Commission approval requested for proposal for professional services in the Northeast Neighborhood Development Area. (Appraisal services, Sears Service/Warehouse) Mr. Rock reported that proposals were received from R. E. Pitts & Associates, MAI and Jerome E. Michaels Appraisal Co., MAI for appraisal services for the Sears Service/Warehouse facility on South Bend Avenue. Both proposals are for the not -to- exceed amount of $3,500. The Sears building will be added to the acquisition list due to interest in the site by the Boy Scouts Regional Council for construction of a headquarters building and public educational facility, which will complement the City's plans for Fredrickson Park. Staff recommends accepting the proposals from R. E. Pitts & Associates and Jerome E. Michaels Appraisal Co. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved the request for professional services in the Northeast Neighborhood Development Area and authorized staff to retain R. E. Pitts & Associates and Jerome E. Michaels Appraisal Co. based on the scope of services and fee proposed. (Sears IL Service /Warehouse) 31 THERE WAS NO BUSINESS IN THE SOUTH SIDE DEVELOPMENT AREA. COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN R. E. PITTS & ASSOCIATES AND JEROME E. MICHAELS APPRAISAL CO. BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (SEARS SERVICE/WAREHOUSE) South Bend Redevelopment Commission Regular Meeting —April 16, 2004 6. NEW BUSINESS J. Other There was no Other business. THERE WAS NO OTHER BUSINESS. 7. PROGRESS REPORTS Ms. Greene reported that TJX recently held a ribbon PROGRESS REPORTS cutting ceremony. The ceremony was attended by Governor Keman and the Commission was publicly thanked for all its efforts. TJX Companies presented two checks in the amount of $1,000 each to The Boys and Girls Clubs of South Bend and The Boys and Girls Clubs of Plymouth in keeping with their Corporate philosophy to contribute to local charities. Mr. Rock reported that the parking garage on the corner of St. Joseph and Jefferson has been demolished. The site has been graded and the City is anticipating a parking lot designed for the area. Mr. Williams reported the north elevator in the Wayne Street parking garage was inspected by the State, passed the inspection and is in operation. The elevators located in the Main and Colfax garage resume repairs with progression moving smoothly and according to plan. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment NEXT COMMISSION MEETING Commission is scheduled for May 7, 2004 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Faccenda made a motion that the meeting be adjourned. Ms. Jones seconded the motion and the meeting was adjourned at 10:57 a.m. 32 14 Ca �W, South Bend Redevelopment Commission Regular Meeting —April 16, 2004 Marcia I. Jones, P61 ent 33 Donald E. Inks, Director