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HomeMy WebLinkAbout11-07-03 Redevelopment Commission MinutesA 14 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING November 7, 2003 10:00 a.m. 227 West Jefferson Boulevard Presiding: Robert W. Hunt, President South Bend, Indiana 1. ROLL CALL Members Present: Mr. Robert W. Hunt, President Ms. Marcia Jones, Vice - President Mr. Philip J. Faccenda, Secretary Mr. Matt Kahn Mr. Hardie Blake, Jr. Legal Counsel: Ms. Cheryl Greene, Esq. Redevelopment Staff. Mr. Donald Inks, Director Ms. Pamela Morris, Recording Secretary Mr. Bob Case, Senior Economic Development Planner Mr. Bill Schalliol, Economic Development Planner 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 Ms. Mary Spillane, The Vine Restaurant Ms. Heidi Prescott, South Bend Tribune Mr. Brad Toothaker, CB Richard Ellis Mr. Dennis J. Andres, Morris Performing Arts Center Mr. Allen Koch, CB Richard Ellis Ms. Jean A. Humphreys, Somerset House 2. APPROVAL OF MINUTES A. Commission approval of the Minutes of the Regular Meeting of October 3, 2003. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the Minutes of the Regular Meeting of October 3, 2003. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF OCTOBER 3, 2003. r G c 2. APPROVAL OF MINUTES (CONT.) B. Commission approval of the Minutes of the Regular Meeting of October 17, 2003. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the Minutes of the Regular Meeting of October 17, 2003. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF OCTOBER 17, 2003. Redevelopment Commission Claims submitted November 7, 2003 for approval. 212 CDBG COMMUNITY DEVELOPMENT General Fund Telephone Federal Express Doubletree Hotel Lloyd Center South Bend Tribune Tri County News IEDC Boise Cascade Office Products Polk Directories Andy Laurent Ann Kolata 324 FUND Abonmarche Consultants of Indiana, LLC Ken Herceg & Associates, Inc. 414 SAMPLE -EWING Baker General Maintenance Fitzmaurice Landscaping Plews Shadley Racher & Braun South Bend Water Works CA Studios Meridian Title Corp. 420 SBCDA AMPCO System Parking Danch, Harper & Associates R 445.50 87.49 812.00 92.59 135.71 135.00 252.40 383.00 160.00 324.26 8,548.75 6,000.00 340.00 2,555.00 2,391.09 442.21 1,839.20 185.00 840.00 8,275.00 n Y An I 3. APPROVAL OF CLAIMS (CONT.) 420 SBCDA continued... Lehman & Lehman Inc. 8,139.47 City of South Bend 1,895.13 David J. Sassano 1,000.00 FUND 424 Mikolajewski & Assocates, Inc. 1,397.34 FUND 427 SAMPLE/EWING- CAPITAL FUND National Environmental Services Corp. 41,261.00 Peerless Midwest Inc. 18,940.00 $ 72.632.94 Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted November 7, 2003, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS A. Commission authorization requested to use Commission owned property located at 215 and 217 South Main Street in the South Bend Central Development Area from December 4 through December 29, 2003. (Center For The Homeless, 15" Anniversary Celebration) Mr. Mathia reported that at the October 17, 2003 meeting, a request was considered from the Center For The Homeless to use Commission owned property on December 4, 2003 for a program celebrating its 15`x' anniversary. The property is located at 215 c 3 COMMISSION APPROVED THE CLAIMS SUBMITTED NOVEMBER 7, 2003, AND ORDERED THE CHECKS TO BE RELEASED. THERE WERE NO COMMUNICATIONS. 5. OLD BUSINESS A. continued... and 217 South Main Street. The request was tabled because of concern that the proposed date may interfere with a special event to be presented by Downtown South Bend, Inc. the following day. Subsequently, staff contacted the Center For The Homeless and Downtown South Bend. As a result of discussions, the Center agreed to promote the DTSB December 5 tree lighting ceremony at its holiday luncheon to be held on December 4. The Center will also promote Downtown South Bend through its Christmas televison special. DTSB confirmed they had no objections to the Center's event being held on December 4. In addition, the Center also requested permission to erect a small scaffolding on the southwest corner of the property to house projection equipment that will shine a star on ' the Holladay Corporation Building from December 4, 2003 through December 24, 2003. The projection equipment would occupy the site through December 29, 2003. Staff recommends approval of the request subject to receiving an Indemnification and Hold Harmless Agreement from the Center that is acceptable to legal counsel. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission authorized a request to use Commission owned property located at 215 and 217 South Main Street in the South Bend Central Development Area from December 4 through December 29, 2003 subject to receipt of an Indemnification Agreement acceptable to legal counsel. (Center For The Homeless, 15'h Anniversary Celebration) t 4 COMMISSION AUTHORIZED A REQUEST TO USE COMMISSION OWNED PROPERTY LOCATED AT 215 AND 217 SOUTH MAIN STREET IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA FROM DECEMBER 4 THROUGH DECEMBER 29, 2003 SUBJECT TO RECEIPT OF AN INDEMNIFICATION AGREEMENT ACCEPTABLE TO LEGAL COUNSEL. (CENTER FOR THE HOMELESS, 15"' ANNIVERSARY CELEBRATION) 6. NEW BUSINESS IL A. Public Hearings (1) Public Hearing on Resolution No. 2006 expanding the boundaries of the Airport Economic Development Area, expanding the Allocation Area for purposes of Tax Increment Financing and amending the Airport Economic Development Area Development Plan. Mr. Case reported that the expansion adds property adjacent and east of the new Bendix re- route. The property owner wishes the City to acquire his property, so it is the City's intent to add this property to the acquisition list. Resolution No. 2006 will increase and diversify the tax base for the City and create additional private investment within the area. With the expansion and acquisition, significant new job opportunities are anticipated resulting from new development, and will permit the expansion of Hoosier Tank. Mr. Inks noted that the Public Hearing file was complete and requested the following items be entered into the record: (1) Copy of the Notice of Hearing; (2) Copy of Resolution No. 2006; (3) Affidavits from the Tri County News and South Bend Tribune that the Notice of Public Hearing was published in those newspapers on October 24, 2003; (4) Statement from staff that affected property owners, registered neighborhood associations and taxing units were notified; and (5) As of 10:00 a.m. this morning, no written remonstrances were received. Mr. Hunt opened the Public Hearing on Resolution No. 2006 and asked if there was anyone from the public who wished to 5 PUBLIC HEARING ON RESOLUTION NO. 2006 AMENDING THE AIRPORT ECONOMIC DEVELOPMENT AREA DEVELOPMENT PLAN. 6. NEW BUSINESS A. Public Hearings (1) continued... speak. There being no one from the public who wished to speak regarding Resolution No. 2006, Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. (2) Commission approval requested for Resolution No. 2006. Ms. Greene noted that Resolution No. 2006 is an amendment to a Development Plan governed by Indiana Code 36 -7 -14 -17.5 and requires a finding by the Commission that the amendment to the Development Plan is appropriate and reasonable and that it conforms to the comprehensive plan for the City of South Bend. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission found the proposed amendment to be appropriate and reasonable, to conform to the comprehensive plan for the City of South Bend and approved Resolution No. 2006 amending the Airport Economic Development Area Development Plan. (Airport Economic Development Area) (3) Public Hearing on Resolution No. 2008 approving a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. (Airport Economic Development Area) Mr. Inks reported there are two (2) debt service reserve funds that have a combined total of $1,155,000 which is the amount being appropriated. The funds will be used C. 6 COMMISSION FOUND THE PROPOSED AMENDMENT TO BE APPROPRIATE AND REASONABLE, TO CONFORM TO THE COMPREHENSIVE PLAN FOR THE CITY OF SOUTH BAND AND APPROVED RESOLUTION NO. 2006 AMENDING THE AIRPORT ECONOMIC DEVELOPMENT AREA DEVELOPMENT PLAN. (AIRPORT ECONOMIC DEVELOPMENT AREA) 6. NEW BUSINESS A. Public Hearings (3) continued... to pay off two (2) outstanding bond issues and allow the issuance of new debt for the Airport Economic Development Area. Mr. Inks also noted that the Public Hearing file was complete and requested the following items be entered into the record: (1) Copy of the Notice of Hearing; (2) Copy of Resolution No. 2007 setting the Public Hearing; (3) Copy of supplemental appropriation Resolution No. 2008; and (4) Affidavits from the Tri County News and South Bend Tribune that the Notice of Public Hearing was published in those newspapers on October 17, 2003. Mr. Hunt opened the Public Hearing on Resolution No. 2008 and asked if there was anyone from the public who wished to speak. There being no one from the public who wished to speak regarding Resolution No. 2008, Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. (4) Commission approval requested for Resolution No. 2008. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2008 approving a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. (Airport Economic Development Area) G PUBLIC HEARING ON SUPPLEMENTAL APPROPRIATION RESOLUTION NO. 2008. (AIRPORT ECONOMIC DEVELOPMENT AREA) COMMISSION APPROVED RESOLUTION No. 2008 APPROVING A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION. (AIRPORT ECONOMIC DEVELOPMENT AREA) 6. NEW BUSINESS A. Public Hearings (continued...) (5) Public Hearing on Resolution No. 2009 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2003, and ending December 31, 2003, including all outstanding claims and obligations. (South Bend Central Development Area Building Operations Budget — Fund 424) Mr. Inks advised the revised Fund 424 operations budget includes an additional $15,000 that was not contained in the original budget. The $15,000 is necessary to balance the budget for the remainder of 2003. The funding has come from the South Bend Central Development Area general TIF account and is being transferred to Fund 424 where it needs to be appropriated in order to be spent for purposes of funding parking garage operations. Mr. Inks noted that the Public Hearing file was complete and requested the following items be entered into the record: (1) Copy of the Notice of Hearing; (2) Copy of Resolution No. 2009; (3) Affidavits from the Tri County News and South Bend Tribune that the Notice of Public Hearing was published in those newspapers on October 17, 2003. Mr. Hunt opened the Public Hearing on Resolution No. 2009 and asked if there was anyone from the public who wished to speak. There being no one from the public who wished to speak regarding Resolution No. 2009, Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. c 8 PUBLIC HEARING ON RESOLUTION No. 2009 (SOUTH BEND CENTRAL DEVELOPMENT AREA BUILDING OPERATIONS BUDGET - FUND 424) 6. NEW BUSINESS ILA. Public Hearings (continued...) (6) Commission approval requested for Resolution No. 2009. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2009 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2003, and ending December 31, 2003, including all outstanding claims and obligations. (South Bend Central Development Area Building Operations Budget — Fund 424) (7) Public Hearing on Resolution No. 2011 approving a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. (South Bend Central Development Area) Mr. Inks advised that Resolution No. 2011 appropriates funds currently held in debt service accounts in the amount of $1,555,528. Those funds will be used to pay off existing bonds in the South Bend Central Development Area. Mr. Inks noted that the Public Hearing file was complete and requested the following items be entered into the record: (1) Copy of the Notice of Hearing; (2) Copy of Resolution No. 2010 setting the Public Hearing; (3) Copy of supplemental appropriation Resolution No. 2011; and (4) Affidavits from the Tri County News and South Bend Tribune that the Notice of Public Hearing was published in those newspapers on October 17, 2003. G 9 COMMISSION APPROVED RESOLUTION NO. 2009 APPROPRIATING MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2003, AND ENDING DECEMBER 31, 2003, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS. (SOUTH BEND CENTRAL DEVELOPMENT AREA BUILDING OPERATIONS BUDGET - FUND 424) C� 3 PUBLIC HEARING ON SUPPLEMENTAL 6. NEW BUSINESS APPROPRIATION RESOLUTION No. 2011 (SOUTH BEND CENTRAL DEVELOPMENT AREA) A. Public Hearings (7) continued... Mr. Hunt opened the Public Hearing on Resolution No. 2011 and asked if there was anyone from the public who wished to speak. There being no one from the public who wished to speak regarding Resolution No. 2011, Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. (8) Commission approval requested for Resolution No. 2011. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 2011 approving a supplemental appropriation resolution of the City of South Bend Redevelopment Commission. (South Bend Central Development Area) B. Housing (1) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 535 Riverside Drive. (Maria M. Hegedus) Mr. Inks advised that the loan is in the amount of $6,950 and the grant is in the amount of $6,814.50. Upon a motion by Mr. Kahn, 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 535 Riverside Drive. (Maria M. Hegedus) 10 COMMISSION APPROVED RESOLUTION NO. 2011 APPROVING A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION. (SOUTH BEND CENTRAL DEVELOPMENT AREA) COMMISSION APPROVED THE LOAN AND GRANT IN ACCORDANCE WITH THE SOUTH BEND HOME IMPROVEMENT LOAN PROGRAM FOR PROPERTY LOCATED AT 535 RIVERSIDE DRIVE. (MARIA M. HEGEDUS) IL 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) Commission approval requested for proposal for re- metering of water supply in the South Bend Central Development Area. (Leighton Garage & Retail Spaces) Mr. Williams reported that three bids were received to change the current water metering system at the Leighton garage in the South Bend Central Development Area. The change involves separating the current supply so the retail shops, the AMPCO office and the courtyard can each be monitored and billed individually. The proposals are as follows: Niezgodski Plumbing, Inc. $ 8,900.00 Bob Frame Plumbing & Heating $ 9,581.52 L. S. Plumbing & Heating $23,715.00 Staff recommends accepting the proposal from Niezgodski Plumbing, Inc. in the amount of $8,900. Mr. Hunt asked if the tenants were aware of the change being made. Mr. Williams responded that CB Richard Ellis was working with staff and that the tenants were notified of the change. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved a proposal for re- metering of water supply in the South Bend Central Development Area. (Leighton Garage & Retail Spaces) (2) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Appraisal services at 122 -126 S. ILI Michigan Street, Osco Drug Store) 11 COMMISSION APPROVED A PROPOSAL FOR RE- METERING OF WATER SUPPLY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (LEIGHTON GARAGE & RETAIL SPACES) It 6. NEW BUSINESS ILI C. South Bend Central Development Area (2) continued... Mr. Williams reported that the property is a commercial establishment; therefore, bids were requested from two (2) MAI certified appraisers exclusively. The proposals are as follows: R. E. Pitts & Associates, Inc. $3,900 Jerome E. Michaels, MAI $3,800 Two appraisals are required to establish fair market value and the staff recommends accepting the proposals from R. E. Pitts & Assocates and Jerome E. Michaels, MAI. Upon a motion by Mr. Kahn, 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 R. E. Pitts & Associates, Inc. and Jerome E. Michaels, MAI based on the scope of services and fee proposed. (Appraisal services at 122 -126 S. Michigan Street, Osco Drug Store) (3) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Appraisal services at 209 E. Colfax, former Rink Riverside Printing Building, & vacant lot to the south) Mr. Williams reported that the property is being considered for possible acquisition and is a commercial establishment. Bids were requested from two (2) MAI certified appraisers exclusively. The proposals are as follows: 12 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN R. E. PITTS & ASSOCIATES, INC. AND JEROME E. MICHAELS, MAI BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (APPRAISAL SERVICES AT 122 -126 S. MICHIGAN STREET, OSLO DRUG STORE) 6. NEW BUSINESS ILC. South Bend Central Development Area (3) continued... R. E. Pitts & Associates, Inc. $3,750 Jerome E. Michaels, MAI $5,000 Two appraisals are required to establish fair market value and the staff recommends accepting the proposals from R. E. Pitts & Assocates and Jerome E. Michaels, MAI. 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 Central Development Area and authorized staff to retain R. E. Pitts & Associates, Inc. and Jerome E. Michaels, MAI based on the scope of services and fee proposed. (Appraisal services at 209 E. Colfax, former ce, Rink Riverside Printing Building, & vacant lot to the south) (4) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Title searches for 209 E. Colfax, former Rink Riverside Printing Building, & vacant lot to the south) Mr. Williams reported the title searches are in preparation for possible acquisition of two (2) parcels of property in the South Bend Central Development Area. Staff received one (1) bid in the amount of $200 from Meridian Title Corporation. This bid includes both parcels. Staff recommends accepting the proposal from Meridian Title Corporation. 13 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN R. E. PITTS & ASSOCIATES, INC. AND JEROME E. MICHAELS, MAI BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (APPRAISAL SERVICES AT 209 E. COLFAX, FORMER RINK RIVERSIDE PRINTING BUILDING, & VACANT LOT TO THE SOUTH) 6. NEW BUSINESS C. South Bend Central Development Area (4) continued... Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the request for professional services in the South Bend Central Development Area and authorized staff to retain Meridian Title Corporation based on the scope of services and fee proposed. (Title searches for 209 E. Colfax, former Rink Riverside Printing Building, & vacant lot to the south) (5) Commission approval requested for proposal for demolition services for property located at 420 S. Main Street in the South Bend Central Development Area. (Blessing's Music Store) Mr. Williams reported that three (3) proposals were received for demolition services for property located in the South Bend Central Development Area. The proposals are as follows: Bradberry Brothers, Inc. $11,616 Ritschard Bros., Inc. $ 9,196 Warner & Sons $ 9,095 Staff recommends accepting the proposal from Warner & Sons in the amount of $9,095. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved a request for demolition services in the South Bend Central Development Area and authorized staff to retain Warner & Sons based on the scope of services and fee proposed. (Blessing's Music Store, 420 S. Main Street) 14 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN MERIDIAN TITLE CORPORATION BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (TITLE SEARCHES FOR 209 E. COLFAX, FORMER RINK RIVERSIDE PRINTING BUILDING, & VACANT LOT TO THE SOUTH) COMMISSION APPROVED A REQUEST FOR DEMOLITION SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN WARNER & SONS BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (BLESSING'S MUSIC STORE, 420 S. MAIN STREET) 6. NEW BUSINESS ILC. South Bend Central Development Area (6) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Environmental services at 305 East Colfax, former Plastimatic Arts Corporation) Mr. Mathia reported EIS Environmental Engineers, Inc. has submitted a proposal to provide environmental services at the former Plastimatic Arts Corporation located at 305 East Colfax. The property is owned by the Commission and plans are being developed to demolish the building and parking area. The proposal submitted contains three (3) separate tasks for Commission approval. (1) Inspection of the site to determine the presence of asbestos containing materials in the building, which must be completed prior to demolition; (2) Soil sampling and analysis for a hydraulic hoist which was located in the building; and (3) Testing of soils and overseeing closure activities for any underground storage tanks that may be found on site. The Phase I inspection for the site found that it had previously been the location of an automobile filling station. While no evidence of underground storage tanks was found during the Phase I inspection, it could also not be determined with certainty that the tanks were removed when the station closed for business. EIS completed the Phase I inspection for the site and, as a result, has gained extensive knowledge of it. The Commission is requested to: (1) execute the Professional Services Agreement by EIS Environmental Engineers, Inc.; (2) indicate on the G 15 6. NEW BUSINESS %W1 C. South Bend Central Development Area (6) continued... Agreement that all three tasks are approved subject to obtaining final notice to proceed from staff, and (3) authorize funding in an amount not to exceed $4,500. Mr. Mathia noted for the Commission that the portion of the proposal which references late fees being applied to all unpaid invoices will be removed before execution. Staff recommends accepting the proposal from EIS Environmental Engineers, Inc. with that amendment. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for professional services in the South Bend Central Development area as amended and authorized staff to retain EIS Environmental Engineers, Inc. based on the scope of services and fee proposed. (Environmental services at 305 East Colfax, former Plastimatic Art Corporation) () Commission approval requested for execution of a Letter of Intent to Lease (LOI) in the South Bend Central Development Area. (Palais Retail Space) Mr. Mathia first introduced the two individuals who submitted a Letter of Intent for the Palais retail space: Ms. Mary Spillane, The Vine Restaurant and Ms. Jean A. Humphreys, Somerset House. Ms. Spillane would like to move The Vine Restaurant from its current downtown location into the Palais. Ms. Humphreys' proposal is to install a combination, upper - end, furniture and antique store in the Palais. 16 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AS AMENDED AND AUTHORIZED STAFF TO RETAIN EIS ENVIRONMENTAL ENGINEERS, INC. BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (ENVIRONMENTAL SERVICES AT 305 EAST COLFAX, FORMER PLASTIMATIC ART CORPORATION) 6. NEW BUSINESS C. South Bend Central Development Area (7) continued... Mr. Mathia also introduced other interested parties: Mr. Brad Toothaker and Mr. Allen Koch, CB Richard Ellis, and Mr. Dennis J. Andres, Morris Performing Arts Center. Mr. Mathia advised the Commission that he would make a brief comparison between the two Letters of Intent. ► Term Ms. Humphreys will agree to a five (5) year term under certain conditions. The LOI includes a provision for lease extensions, but does not specify any time limit. Ms. Spillane offered an initial term of five (5) years and six (6) months with an option for a five (5) year extension. ► Lease Rate Ms. Humphreys has proposed a lease rate of $2,400 per month for the retail space and a major portion of the basement (this is equsivalent to $8.22/sq ft for the retail space only with no rent paid for the basement). Ms. Humphreys also proposed a cap not to exceed 7.5% on rent increases for any lease extensions. Ms. Spillane has proposed a lease rate of $9.25/sq ft for the first floor and $3.10 /sq ft for the basement. Ms. Spillane will allow up to a 20% rent increase after an appraisal is conducted during the second five year extension. 17 C� 6. NEW BUSINESS C. South Bend Central Development Area ('n continued... ► Finishing Costs While no final plans or cost estimates have been developed for either party, it appears that the cost to the Commission to finish the space for Ms. Humphreys would be lower than for Ms. Spillane. However, Ms. Spillane has agreed to a cap of $310,000 for the Commission's costs with anything above that figure to be paid from her account. Although Ms. Humphreys set no cap on costs to the Commission, it is expected that the costs associated with her move into the space would be less than that amount. Ms. Humphreys has proposed a penalty of one day's free rent for each day if the Commission misses a deadline of January 31, 2004 to complete its work. Ms. Spillane has not proposed any penalties. ► Experience Ms. Humphreys has operated her business out of her home since 1995 and has collaborated with builders in the Panorama of Homes program on interior design and furnishings. Ms. Spillane opened The Vine at its present location in the downtown area in November 1998 and has operated there since then. In 6. NEW BUSINESS C. South Bend Central Development Area (7) continued... ► Staff Recommendations Staff determined that both proposals would achieve the Commission's goals for development in the downtown area. However, Ms. Spillane's proposal is the most advantageous to the Commission, price and other factors considered. The lease rate offered is higher and the term is more certain. While costs to prepare the retail space for The Vine may be higher, Ms. Spillane has agreed to a cap on those costs for the Commission. In addition, Ms. Spillane's proposal best fits the Commission's particular objectives to strengthen the complex as an entertainment destination and to increase foot traffic in the area that other businesses could then build on. The restaurant accomplishes both objectives by enhancing the total entertainment package (a meal and a show) available directly in the complex. Finally, Ms. Spillane's demonstrated experience establishing and operating a restaurant in the downtown area weighs heavily in her favor. Staff recommends the Commission sign Ms. Spillane's Letter of Intent. Further, due to the excellent addition Ms. Humphreys' business would make to the downtown area, it is also recommended that the Commission direct staff to continue working with Ms. Humphreys to find a suitable location for her furniture and antique business. 19 A 6. NEW BUSINESS C. South Bend Central Development Area ('n continued... Ms. Spillane expressed her excitement related to the opportunity to relocate The Vine into the Palais. During the past five years they have outgrown their present space and are looking forward to refining their efforts and increasing the number of seats available. Ms. Spillane stated they have a proven successful product, and as a business that depends on a high volume of traffic, the exposure in the Palais location will increase the number of people coming to the area even during non -event days at the Morris. Mr. Hunt inquired as to the status of Ms. Spillane's current lease. Ms. Spillane responded that the current lease will be up in July 2004; however, willing to forgo lost dollars, she did not believe penalties will be assessed. Ms. Humphreys commented that although the Palais retail space is great for a restaurant and would go hand in hand with the arts, she believes it is also a great location for antiques. The type of audience that they anticipate catering to also highly support the arts. However, if Somerset House does not obtain the Palais space, Ms. Humphreys expressed she would like to be directly in that same vicinity. Mr. Dennis J. Andres, Executive Director of The Morris Performing Arts Center, next addressed the Commission. While anxious to have a retail business move in, it is felt that a business which is more appropriate and will complement what is done at The Pic An A A 6. NEW BUSINESS C. South Bend Central Development Area (7) continued... Morris and The Palais is certainly attractive. Management is in support of The Vine Restaurant moving into the retail space. Ms. Greene noted that the lease of public property is governed by Indiana Code Section 36- 7 -14 -22 and the Commission may take the following factors into consideration when awarding a bid. b. The size and character of the improvements proposed to be made on the real property. ► The bidder's plans and ability to improve the property with reasonable promptness. ► Whether the property when improved will be sold or rented (a leasehold is not applicable). ► The bidder's proposed rental prices. ► Any other factors that will assure the Commission in their own discretion that the sale or lease, if made, will further the execution of the redevelopment plan for the area and best serve the interests of the community from the standpoint of both human and economic welfare. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved execution of the Letter of Intent to Lease (LOI) the Palais Retail Space with Ms. Mary Spillane, The Vine Restaurant. Mr. Hunt requested that Mr. Mathia and staff work closely with Ms. Humphreys to help find suitable property for relocation of the Somerset House antique business to the downtown area. 21 COMMISSION APPROVED EXECUTION OF THE LETTER OF INTENT TO LEASE (LOI) THE PALAIS RETAIL SPACE WITH MS. MARY SPILLANE, THE VINE RESTAURANT. It was noted for the record that Commissioner Kahn left the meeting at 10:35 a.m. and a quorum was still present to continue the business of the Commission. 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (8) Commission approval requested for Contract for Sale of Land for Private Development. (Madison Center, Inc.) Mr. Mathia reported that the Redevelopment Commission approved, in principle, an offer from Madison Center for the Crescent Avenue Properties (Parcels 1, 2 and 3) at its meeting on September 19, 2003. The agreed upon price was $480,000. The Commission authorized Legal Counsel to complete negotiations for the sale of the property and to prepare a Contract for Sale of Land. The contract, as it has been written, also calls for the Commission to convey to Madison 40� Center a small parcel of land south of the intersection of Hill and Crescent Streets that was deeded to the City in the early 1900s. The parcel is behind property already owned by Madison Center and is not useful to anyone but Madison Center. The completed Contract does not deviate from the offer previously approved by the Commission. Staff recommends approval and execution of the Contract for Sale of Land for Private Development. Upon a motion by Ms. Jones, seconded by COMMISSION APPROVED THE CONTRACT FOR Mr. Faccenda and unanimously carried, the SALE OF LAND FOR PRIVATE DEVELOPMENT. Commission approved the Contract for Sale (MADISON CENTER, INC.) of Land for Private Development. (Madison Center, Inc.) (9) Filing of Resolution No. 2014 expanding the boundaries of the South Bend Central Development Area, expanding the 22 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (9) continued... Allocation Area for purposes of Tax Increment Financing and amending the South Bend Central Development Area Development Plan and setting a Public Hearing for Monday, November 17, 2003 at 10:00 a.m. Mr. Inks requested that Item 6.C.(9) be tabled. There were no objections and the Commission tabled Item 6.C.(9). (10) Filing of Resolution No. 2015 contracting the boundaries of the South Bend Central Development Area, reducing the Allocation Area for purposes of Tax Increment Financing and amending the South Bend Central Development Area Development Plan and setting a Public Hearing for Monday, November 17, 2003 at 10:00 a.m. Mr. Inks requested that Item 6.C.(10) be tabled. There were no objections and the Commission tabled Item 6.C.(10). D. Sample -Ewing Development Area (1) Commission approval requested for Contract for Sale of Land for Private Development. (Rose Fuel & Materials, Inc.) Mr. Laurent reported that the project with Rose Fuel & Materials is located in the Oliver Industrial Park. Staff is requesting approval by the Commission of a Contract for Sale of Land that will be consistent and parallel to the Development Agreement 23 COMMISSION TABLED ITEM 6.C.(9). COMMISSION TABLED ITEM 6.C.(10). .t 6. NEW BUSINESS (CONT.) ILD. Sample -Ewing Development Area (1) continued... which was executed by the Commission on July 3, 2003. Mr. Laurent advised that the actual document was not available for signature; however, it will be the Commission's standard form for Contract for Sale of Land. The Contract will also include an Access Agreement for the Commission to continue work on the boilerhouse after the sale of the property. After the document is completed staff will obtain execution by the Commission. Ms. Greene advised that the Commission previously approved the Development Agreement with Rose Fuel & Materials, and as an attachment to an exhibit to that Development Agreement, the Commission's standard form of Contract for Sale of Land was included. As long as there are no material changes to the Commission's standard agreement and the terms are consistent with those expressed in the Development Agreement, it would not be necessary for the Contract to be presented again at another Commission meeting. The lawyers are doing final review of documents in preparation for closing on November 13, 2003 and staff is requesting that the Commission approve the Contract for Sale of Land subject to no material changes. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried the Commission approved the Contract for Sale of Land for Private Development subject to there being no material changes from the Development Agreement. (Rose Fuel & Materials, Inc.) 24 COMMISSION APPROVED THE CONTRACT FOR SALE OF LAND FOR PRIVATE DEVELOPMENT SUBJECT TO THERE BEING NO MATERIAL CHANGES FROM THE DEVELOPMENT AGREEMENT. (ROSE FUEL & MATERIALS, INC.) N 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (2) Commission approval requested for Construction Agreement with Northern Indiana Public Service Company in the Sample -Ewing Development Area. (Oliver Industrial Park gas line) Mr. Laurent reported that the agreement with NIPSCO is to construct the gas line and service for all the parcels in the Oliver Industrial Park. The Commission will pay NIPSCO the amount of $5,844. The contract includes language that over the next six (6) years, as customers tap into the gas service, NIPSCO will pay the Commission the estimated 36 -month income that will be received from the tap. All expenses are expected to be recouped within the six (6) year period. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved a Construction Agreement with Northern Indiana Public Service Company in the Sample -Ewing Development Area. (Oliver Industrial Park gas line) E. Airport Economic Development Area (1) Commission approval requested for Resolution No. 2017 amending Resolution No. 1965 entitled "A Bond Resolution of the South Bend Redevelopment Commission authorizing the issuance of Tax Increment Revenue Bonds, Series 2003, of the South Bend Redevelopment District" as previously amended by Resolution No. 2004. C, 25 COMMISSION APPROVED A CONSTRUCTION AGREEMENT wmi NORTHERN INDIANA PUBLIC SERVICE COMPANY IN THE SAMPLE -EWING DEVELOPMENT AREA. (OLIVER INDUSTRIAL PARK GAS LINE) e IL 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (1) continued... Mr. Inks reported that Resolution No. 2017 will increase the authorized issuance of bonds in the Airport Economic Development Area from $13M to a not -to- exceed figure of $16M. Resolution No. 2017 also establishes a public hearing for the purpose of appropriating the funds at 10:00 a.m. on November 17, 2003, the next scheduled meeting of the Commission. Mr. Hunt inquired as to what the additional funding would do. Mr. Inks replied that the funding will allow the completion of the northern section of Olive Road past the newly completed bridge in the Blackthorn area. The original bond issue only included the southern portion of Olive Road. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 2017 amending Resolution No. 1965 entitled "A Bond Resolution of the South Bend Redevelopment Commission authorizing the issuance of Tax Increment Revenue Bonds, Series 2003, of the South Bend Redevelopment District" as previously amended by Resolution No. 2004 and set a public hearing for Resolution No. 2017 on Monday, November 17, 2003 at 10:00 a.m. at a Rescheduled Meeting of the Redevelopment Commission. F. South Bend Medical Services District There was no business in the South Bend Medical Services District. 26 COMMISSION APPROVED RESOLUTION NO. 2017 AMENDING RESOLUTION NO. 1965 ENTITLED "A BOND RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION AUTHORIZING THE ISSUANCE OF TAX INCREMENT REVENUE BONDS, SERIES 2003, OF THE SOUTH BEND REDEVELOPMENT DISTRICT" AS PREVIOUSLY AMENDED BY RESOLUTION No. 2004 AND SET A PUBLIC HEARING FOR RESOLUTION No. 2017 ON MONDAY, NOVEMBER 17, 2003 AT 10:00 A.M. AT A RESCHEDULED MEETING OF THE REDEVELOPMENT COMMISSION. THERE WAS NO BUSINESS IN THE SOUTH BEND MEDICAL SERVICES DISTRICT. C+J 6. NEW BUSINESS (CONT.) G. West Washington- Chapin Development Area There was no business in the West Washington - Chapin Development Area. H. South Side Development Area (1) Filing of Resolution No. 2013 amending the South Side Development Area Development Plan and setting a Public Hearing for Monday, November 17, 2003 at 10:00 a.m. Mr. Schalliol reported that Resolution No. 2013 will add one (1) property, located at 505 East Ireland Road, to the acquisition list for the South Side Development Area and will set a public hearing for Monday, November 17, 2003. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission accepted for filing Resolution No. 2013 and set a public hearing on Resolution No. 2013 for Monday, November 17, 2003 at 10:00 a.m. at a Rescheduled Meeting of the Redevelopment Commission. (2) Commission approval requested for proposal for professional services in the South Side Development Area. (Appraisal services at 308 West Ireland Road) Mr. Schalliol reported that to facilitate the disposition of property at 308 West Ireland Road, staff is required to obtain two (2) independent commercial property appraisals to make a fair and accurate offer to the owners of the property. Staff recommends accepting the proposals from the following companies: 27 THERE WAS NO BUSINESS IN THE WEST WASHINGTON -CHAPIN DEVELOPMENT AREA. COMMISSION ACCEPTED FOR FILING RESOLUTION No. 2013 AND SET A PUBLIC HEARING ON RESOLUTION NO. 2013 FOR MONDAY, NOVEMBER 17, 2003 AT 10:00 A.M. AT A RESCHEDULED MEETING OF THE REDEVELOPMENT COMMISSION. I • . f IL 6. NEW BUSINESS (CONT.) H. South Side Development Area (2) continued... Jerome E. Michaels, MAI $2,800 R. E. Pitts & Associates, Inc. $3,450 Upon a motion by Mr. Blake, seconded by Ms. Jones and unanimously carried, the Commission approved the request for professional services in the South Side Development Area and authorized staff to retain Jerome E. Michaels, MAI and R. E. Pitts & Associates, Inc. based on the scope of services and fees proposed. (Appraisal services at 308 West Ireland Road) (3) Commission approval requested for proposal for professional services in the IL South Side Development Area. (Appraisal services at 505 East Ireland Road) Mr. Schalliol reported that to facilitate the acquisition of property at 505 East Ireland Road, staff is required to obtain two (2) independent residential property appraisals to make a fair and accurate offer to the owner of the property. Staff recommends accepting the proposals from the following companies: Christopher J. Michaels $300 Witt Appraisal Services $475 Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved the request for professional services in the South Side Development Area and authorized staff to 28 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SOUTH SIDE DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN JEROME E. MICHAELS, MAI AND R. E. PITTS & ASSOCIATES, INC. BASED ON THE SCOPE OF SERVICES AND FEES PROPOSED. (APPRAISAL SERVICES AT 308 WEST IRELAND ROAD) COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SOUTH SIDE DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN CHRISTOPHER J. MICHAELS AND WITT APPRAISAL SERVICES BASED ON THE SCOPE OF SERVICES AND FEES PROPOSED. (APPRAISAL r 6 . { 6. NEW BUSINESS (CONT.) ILH. South Side Development Area (3) continued... retain Christopher J. Michaels and Witt Appraisal Services based on the scope of services and fees proposed. (Appraisal services at 505 East Ireland Road) (4) Commission approval requested for proposal for professional services in the South Side Development Area. (Title work at 308 West Ireland Road and 505 East Ireland Road) Mr. Schalliol reported that to facilitate the acquisition of property at 505 East Ireland Road and the disposition of the property at 308 West Ireland Road, staff needs to obtain a current title policy for each property. Staff recommends accepting the proposal from Meridian Title Corporation in a not -to- exceed amount of $1,000. Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission approved the request for professional services in the South Side Development Area and authorized staff to retain Meridian Title Corporation based on the scope of services and fee proposed. (Title work at 308 West Ireland Road and 505 East Ireland Road) I. Other (1) Commission approval requested to send the Certificate of Tax Increment Finance Replacement Amount Worksheets to the Department of Local Government Finance. 29 SERVICES AT 505 EAST IRELAND ROAD) COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SOUTH SIDE DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN MERIDIAN TITLE CORPORATION BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (TITLE WORK AT 308 WEST IRELAND ROAD AND 505 EAST IRELAND ROAD) 6. NEW BUSINESS (CONT.) IL I. Other (1) continued... Mr. Inks reported that worksheets were also completed in 2002 and submitted to the Department of Local Government Finance. Their purpose is to establish a replacement tax levy under legislation passed in 2002 in which a sixty percent school property tax replacement credit was enacted. Since tax increment financing areas do not receive tax replacement credits from the State, that will have the effect of reducing our revenues from the TIF areas. The State has provided legislation which allows us to make up the lost revenue by levying a tax to replace it. These worksheets establish the amount of those taxes that would be levied to replace the lost taxes in the TIF areas for 2003. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission authorized the Certificate of Tax Increment Finance Replacement Amount Worksheets to be sent to the Department of Local Government Finance. 7. PROGRESS REPORTS COMMISSION AUTHORIZED THE CERTIFICATE OF TAX INCREMENT FINANCE REPLACEMENT AMOUNT WORKSHEETS TO BE SENT TO THE DEPARTMENT OF LOCAL GOVERNMENT FINANCE. Mr. Schalliol commented on the City Plan Meetings PROGRESS REPORTS currently being conducted. The meetings have been very successful and average between fifteen and thirty people per meeting. Mr. Schalliol encouraged everyone to attend at least one meeting and noted it was a great opportunity for public input. There are approximately fourteen meetings left which are conveniently located around the City. Ms. Greene noted that the elections are over and Mayor Steven J. Luecke will be leading the City of South Bend for the next four (4) years. 30 I . ,- 14 L4-VA 7. PROGRESS REPORTS (CONT.) Ms. Greene commented on the South Bend Tribune article regarding the relocation of Blessings Music. The story was very positive and conveyed satisfaction by property owners after relocation by the Redevelopment Commission. Mr. Laurent reported that contracts have been approved through the Board of Public Works to start demolition specifications for one of the Studebaker buildings in the Stamping Plant. The building was involved in a fire on September 28, 2003. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for Monday, November 17, 2003 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Ms. Jones made a motion that the meeting be adjourned. Mr. Blake seconded the motion and the meeting was adjourned at 10:51 a.m. `,� Robert W. Hunt, President 31 NEXT COMMISSION MEETING ADJOURNMENT AL/Z2� �� Donald E. Inks, Director