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HomeMy WebLinkAbout06-06-03 Redevelopment Commission Minutes,r 1-4 3 1 A SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING June 6, 2003 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 (part of meeting) Mr. Hardie Blake, Jr. Ms. Cheryl Greene Redevelopment Staff: Mr. Owen Rock, Assistant Director Mrs. Cheryl Phipps, Recording Secretary Mr. Robert Mathia, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Others Present: Jim Masters, Attorney John Freidline Emmett McNease, Witmer McNease Music Store David Sassano, Architect David Makielski, Makielski Office Supply 2. APPROVAL OF MINUTES A. Commission approval of the Minutes of the Regular Meeting of April 4, 2003. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the Minutes of the Regular Meeting of April 4, 2003. B. Commission approval of the Minutes of the Regular Meeting of April 17, 2003. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the Minutes of the Regular Meeting of April 17, 2003. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF APRIL 4, 2003. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF APRIL 17, 2003. W 'A 14 t South Bend Redevelopment Commission Regular Meeting —June 6, 2003 2. APPROVAL OF MINUTES (CONT.) C. Commission approval of the Minutes of the Regular Meeting of May 2, 2003. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the Minutes of the Regular Meeting of May 2, 2003. D. Commission approval of the Minutes of the Regular Meeting of May 16, 2003. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the Minutes of the Regular Meeting of May 16, 2003. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF MAY 2, 2003. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF MAY 16, 2003. Redevelopment Commission Claims submitted June 6, 2003 for approval. 212 CDBG COMMUNITY DEVELOPMENT Union League Club $ 387.00 Jennifer Hughes 136.85 South Bend Tribune 43.71 Insty- Prints 194.34 General Fund 172.23 City of South Bend 12.73 Great Lakes Centers 125.00 Building Dept 6,739.92 Tri County News 35.73 Petty Cash 36.00 Federal Express 178.53 Eldon Schafer 90.00 324 FUND Illinois Lawn Equipment Inc. 18,030.00 City of South Bend 711.41 Appraisal Group, Inc. 900.00 2 w A South Bend Redevelopment Commission Regular Meeting —June 6, 2003 3. CLAIMS (CONT.) Abonmarche Consultants of Indiana, L.L.C. Phillip Krause City of South Bend Youngs Excavating, Inc. St. Joseph County Treasurer Northern Indiana Public Service Company 414 SAMPLE -EWING Baker General Maintenance Residential Appraisal Services, Inc. Fitzmaurice Landscaping Williams Wickliffe St. Joseph County Treasurer Plews Shadley 420 SBCDA Casteel Construction Lj, Paul Fujawa Engineers, Inc. Cressy & Everett Management Co. Jerome E. Michaels, MAI Danch, Hamer & Associates, Inc. URS Corporation Lehman & Lehman, Inc. St. Joseph County Treasurer Key Bank Meridian Title Kaser Spraker Construction 422 FUND URS Corporation FUND 427 SAMPLE/EW1NG- CAPITAL DLZ Indiana Inc. ACM Enviromental 619 BLACKTHORN Meadowbrook Glof Group, Inc. 14 3 7,531.25 1,200.00 912.53 110,997.53 15,203.99 2,525.00 100.00 375.00 2,906.00 2,625.00 961.35 67.03 9,959.00 846.40 535.00 500.00 1,721.00 37,370.59 9,667.02 20,372.25 1,070.00 100.00 20,956.00 35,000.00 22,404.00 820.00 7,000.00 M 14 G South Bend Redevelopment Commission Regular Meeting —June 6, 2003 3. CLAIMS (CONT.) Mr. Hunt asked about the claim from Youngs Excavating in the amount of $110,997.53. Mr. Rock responded that the claim is related to the sewer extension for the Cooreman project. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Claims submitted June 6, 2003, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Public Hearing (1) Public Hearing on Resolution No. 1973 a resolution of the City of South Bend Redevelopment Commission amending the South Bend Central Development Area Development Plan. Mr. Rock noted that Resolution No. 1973 adds four (4) properties to the acquisition list of the South Bend Central Development Area Development Plan. Two (2) of the properties are owned by the Emmett McNease Revocable Living Trust and two (2) properties are owned by John Freidline. 4 COMMISSION APPROVED THE CLAIMS SUBMITTED JUNE 6, 2003, AND ORDERED THE CHECKS TO BE RELEASED. THERE WERE NO COMMUNICATIONS. THERE WAS NO OLD BUSINESS. South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS A. Public Hearing (1) continued.... Mr. Rock asked that the following items be entered into the public record: (1) A copy of Resolution No. 1973; (2) A copy of the Notice of Hearing on Resolution No. 1973; (3) Affidavits from the South Bend Tribune and the Tri- County News that the Notice of Hearing was published in those newspapers on May 23, 2003; (4) A memo from Owen Rock stating that neighborhood organizations and interested parties were sent a copy of the Notice of Hearing on May 28, 2003; (5) There was 1 written remonstrance received regarding Resolution No. 1973. Ms. Greene noted that the one (1) written remonstrance is a letter from Mr. James Masters, attorney for the Emmett McNease Revocable Living Trust. The remonstrance is timely and is incorporated into the minutes of the meeting: June 5, 2003 Robert W. Hunt, President Redevelopment Commission City of South Bend 1200 County -City Building 227 W. Jefferson Boulevard South Bend, IN 46601 RE: South Bend Central development Plan t 5 South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS A. Public Hearing (1) continued.... Dear Commission President Hunt and Members of the Redevelopment Commission: This letter is addressed to you on behalf of my client, Emmett McNease Revocable Living Trust, which owns the real estate at 418 South Main Street and 424 -430 South Main Street, South Bend, Indiana (Tax Key Nos. 18- 3016 - 0588.02 and 18 -3016- 0590.01) which is included in the proposed amendment to the South Bend Central Development Plan. Emmett McNease Revocable Living Trust hereby remonstrates against the proposed amendment to include its property in the South Bend Central Development Plan. The basis for this remonstrance is that the property sought to be acquired by the Redevelopment Commission is not within an area which is blighted to an extent that cannot be corrected by regulatory processes or by the ordinary operations of private enterprise within the meaning and intent of I. C. 36- 7 -14 -5 and that the property to be acquired is not needed for a project of public utility and benefit. There is no legal or factual basis to find that the property owned by Emmett McNease Revocable Living Trust is blighted or that the property is needed for a public purpose. G6 South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS A. Public Hearing (1) continued.... The property that is owned by the Emmett McNease Revocable Living Trust at 418 and 424 -430 South Main Street, South Bend, is used as the parking for the building owned by the Emmett McNease Revocable Living Trust at 439 South Michigan Street, South Bend. This building houses the Witmer McNease Music Company, Inc., Ralph's Newsstand and seventeen other tenants. There also are ten (10) to fifteen (1 S) monthly parkers who pay to use the parking lot. The Redevelopment Commission's action to take the parking lots will substantially damage the building at 439 South Michigan Street, which is not being acquired, and the businesses located in that building. The Redevelopment Commission's action is a prelude to taking property from a private owner to transfer to another owner. This action exceeds the statutory authority of the Redevelopment Commission and violates the constitutional rights of Emmett McNease Revocable Living Trust. Emmett McNease Revocable Living Trust remonstrates against the inclusion of its property in the proposed amendment to the South Bend Central Development Plan. We ask that you not include its property in the amended plan. Very truly yours, James A. Masters %I G South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS A. Public Hearing (1) continued.... Mr. Hunt opened the Public Hearing for whoever wished to speak. MR. MASTERS: Mr. Hunt, members of the Commission, I'm James A. Masters. I'm here on behalf of Emmett McNease who is the trustee and owner of the properties owned by the Emmett McNease Revocable Living Trust. This is Mr. McNease. The properties you are seeking to acquire, put on your acquisition list, are the parking lots adjacent to Mr. McNease's building. You are only acquiring his parking lots and not his building itself. If I can show you the site plan on the aerial photograph of the area, this is the building which houses the Witmer McNease Music Store. (Mr. Masters indicated a building located at the intersection of Monroe Street and Michigan Street.) Mr. McNease has been at that location since 1968. It's on Michigan Street at Monroe. These are the parking lots you're seeking to acquire. (Mr. Masters indicated the two (2) subject properties.) You're only asking to take his parking lots, not his building. The building itself houses Mr. McNease's store, it houses the Newsstand, it houses seventeen (17) other tenants. There are at any given time ten (10) to fifteen (15) monthly parkers that rent space on the parking lots. If you take away his parking you substantially damage the remainder of the property, which is the building. And you impair all of the businesses operating in that 8 PUBLIC HEARING oN RESOLUTION NO. 1973 South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS A. Public Hearing (1) continued.... location that have been there since 1968. Actually, the Newsstand has been in that building before Mr. McNease acquired it. I think that this proposal is headed in the wrong direction. Frankly, I don't see how that qualifies to be blighted; I don't see how it meets your statutory criteria to acquire the property. I don't think you have statutory authority to acquire this property. This acquisition is a prelude to acquire this property, apparently to turn over to the school corporation for the building that it intends to build. The Supreme Court of Indiana has said the Redevelopment Commission can't take property from one private owner just to turn it over to another private owner. That's a valid objection to any acquisition. That's what I think this is a prelude to. You know, as a tax payer in this community, I just have to tell you, people hire me to come here and do battle with you because of things like this. Right across the street on the south side of Monroe and Michigan Street are three buildings that are basically a scourge on downtown. Anybody coming into downtown from the south has to pass three buildings that need a good push, which are blighted. And it seems to me that if you want to turn your directions towards acquisition of anything within your statutory authority, that's the direction you ought to be G9 South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS A. Public Hearing (1) continued.... headed. Taking these properties from Mr. McNease substantially damages his building and impairs his business. And you'd run out of town a business that's been downtown since 1968. We remonstrate against the taking and ask you not to put these properties on your acquisition list. Mr. Hunt asked if anyone else wished to speak. JOHN FREIDLINE: Well, I don't know the procedures here, but I question, exactly, are ILI you required to supply us with your rationale for taking the properties? MR. HUNT: I'm sorry? JOHN FREIDLINE: Are you required as a committee or body to tell us why you're taking the properties? MS. GREENE: The Commission has filed a redevelopment plan for the area and set forth in their plan their proposed redevelopment of the entire area. It's a general statement as to how the property will be redeveloped — whether it will be commercial, retail, etc. That plan is on file through the recorders office and available if you come to the twelfth floor of the County - City Building, Department of Redevelopment. The finding as to blight does not go to the individual properties 10 South Bend Redevelopment Commission IL Regular Meeting —June 6, 2003 6. NEW BUSINESS A. Public Hearing (1) continued.... involved in the Commission's proposed acquisition but rather, to the overall area. Acquisition of property is the means by which the State Legislature has provided to the Redevelopment Commission in order to redevelop the area consistent with its redevelopment plan. The letter that was submitted on June 5, from Mr. Masters on Emmett McNease Revocable Living Trust's behalf concerning the properties at 418 S. Main Street and 424- 430 S. Main Street, should be incorporated ce into the record. However, in summary, the letter states that the basis of the remonstrance is that the property sought to be acquired for the Redevelopment Commission is not within an area which is blighted to an extent which cannot be corrected by regulatory processes or by the ordinary operations of private enterprise, within the meaning and intent of Indiana Code 36- 7 -14 -5 and that the property is to be acquired is not needed for a project of public utility and benefit. And, again, the entire letter should be reviewed by the Commission. Have you had the opportunity to review this prior to the meeting? (No.) Do you want to take the time to now? (Note: Written remonstrance was reviewed by Commissioners.) 11 South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS A. Public Hearing (1) continued.... In addition, prior to the meeting I spoke with Mr. Masters by telephone and it was my understanding, unless that has changed, that the remonstrance was being filed in order to preserve Mr. McNease's rights in this matter. Mr. McNease and Mr. Masters were agreeable to continue negotiations with respect to this property and would, therefore, suggest at this point that the Commission hold off making final decision on the remonstrance. The remonstrance can be revived in the event that negotiations break down. The remonstrance is filed timely, consistent with the statute and by agreement may be held in abeyance until such time that, if we are unable to reach an agreement, then it would be revived and all of the statutory rights would kick in at that point. Jim, is that correct? Your understanding of our agreement? MR. MASTERS: No. If the Commission votes to put this property on its acquisition list, then you also have to take into account our remonstrance. The time runs, we have thirty days to file suit in court to challenge this acquisition. If we enter into some kind of agreement, that agreement could extend the deadline for filing suit. MS. GREENE: You want them to go ahead and act on the remonstrance? 12 South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS A. Public Hearing (1) continued.... MR. MASTERS: I'd rather they not acquire the property at all. But if you decide you're going to run with this and put this on the acquisition list, then the time begins to run for us to file our suit to challenge it. If we work out something in the interim, or if it looks like we're going to work something out in the next thirty days, we can probably come up with an agreement to extend the time to file the law suit. But the remonstrance still has to be on file today. MS. GREENE: I'm sorry, I misunderstood IL you this morning. In other words the Commission is asked to take action on the remonstrance. In the event the Commission, after reviewing the remonstrance, chooses to move forward to add the property to the acquisition list, Mr. Masters has asked that the thirty -day period of time that it sets forth in the statute for filing a legal action be extended by agreement. MR. MASTERS: You asked that. MS. GREENE: Ok, I asked that. That the thirty-days be extended by agreement by the Commission to allow continued negotiations. MR. MASTERS: Although I'm not sure what the Commission could do about that today. 13 South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS A. Public Hearing (1) continued.... MS. GREENE: They could make affirmative recognition of your right to extend that —to come in after the thirty days —which the Commission has done previously on other property acquisitions. So there is precedent. Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. Mr. Hunt noted that he couldn't agree more with Mr. Masters' statement about the need to acquire and demolish the three buildings IL on the other side of Monroe Street from McNease Music Company. (2) Commission approval requested for Resolution No. 1973. Upon a motion by Ms. Jones, seconded by COMMISSION APPROVED RESOLUTION No. 1973, Mr. Kahn and unanimously carried, the A RESOLUTION OF THE CITY OF SOUTH BEND Commission approved Resolution No. 1973, REDEVELOPMENT COMMISSION AMENDING THE SOUTH BEND CENTRAL DEVELOPMENT AREA a resolution of the City of South Bend DEVELOPMENT PLAN Redevelopment Commission amending the South Bend Central Development Area Development Plan. Ms. Greene noted that now that the Commission has considered the remonstrance from the Emmett McNease Revocable Living Trust and approved Resolution No. 1973, the remonstrator has thirty days to file a legal action appealing the Commission's decision on the matter. 14 W_M= 14 South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS A. Public Hearing (2) continued.... Ms. Greene recommended that the Commission authorize the thirty-day period of time to be extended an additional thirty days if negotiations seem to be proceeding to resolution of the issues. Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission authorized a thirty-day extension to the thirty-day period of time for filing suit if negotiations seem to be proceeding to resolution of the issues. B. South Bend Central Development Area (1) Commission approval requested for proposal for professional services on four properties located in the South Bend Central Development Area. (Phase I environmental services) Mr. Rock noted that these properties were recently added to the SBCDA acquisition list. The properties are the Inwoods Building, Blessings Music Store, and two (2) parking lots (one north and one south of Blessings Music). Staff requests permission to request a Phase I environmental inspection on the property. Staff has received three (3) proposals for that work: Envirocorp $3,500 Wightman Petrie $3,900 Grauvogel and Assoc. $3,025 15 COMMISSION AUTHORIZED A THIRTY -DAY EXTENSION TO THE THIRTY -DAY PERIOD OF TIME FOR FILING SUIT IF NEGOTIATIONS SEEM TO BE PROCEEDING TO RESOLUTION OF THE ISSUES. South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS B. South Bend Central Development Area (1) continued.... Staff recommends accepting the offer from Grauvogel and Associates. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the request for proposals in the South Bend Central Development Area and authorized staff to retain Grauvogel and Associates based on the scope of services and fee proposed. Mr. Mathia asked that item 6.B.(7) be considered at this point on the agenda. There IL were no objections and the item was moved up on the agenda. (7) Commission approval requested for Letter of Intent to rent retail space in the South Bend Central Development Area. (Palais Royale Building) Mr. Mathia noted that the staff originally intended to ask the Commission to table this item, but Mr. Makielski is present at the meeting and would like the opportunity to make a presentation at this time. Mr. Mathia noted that David Makielski would like to rent the Palais Royale retail space for an art gallery and to relocate his art supply store to this space. (Mr. Makielski made the following presentation) Mr. Makielski apologized that he did not have a formal presentation ready for the 16 COMMISSION APPROVED THE REQUEST FOR PROPOSALS IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN GRAUVOGEL AND ASSOCIATES BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. South Bend Redevelopment Commission Regular Meeting —June 6, 2003 w 6. NEW BUSINESS B. South Bend Central Development Area (7) continued.... Commission regarding his proposal for the Palais Royale retail space. Makielski had a retail store in downtown South Bend from 1911 until 1991 when the store was moved to Main Street, Mishawaka. Mr. Makielski now must move from that location and he would like to open a retail store in the Palais retail space. Mr. Makielski proposes to locate an upscale retail art gallery and an expresso and dessert bar with outside seating on the east side, using two 10- minute parking spaces along the Morris' ticket parking drive. Mr. Makielski proposes to replace the current awnings with something similar to what the LaSalle Grill has. Makielski proposes using the porcelain sign which hung in front of its old store for 60 years and believes it would fit nicely above the door, but under the Palais decor above. Mr. Makielski proposes to install Italian terrazzo for the floor on the first floor and use unique, matching 100 - year -old walnut display cases. Respected regional artists could sell their works on the first floor and that space would be kept clean and uncluttered. Artist demonstrations could also be held periodically on the first floor. Mr. Makielski proposes to install office space and a children's educational space on the main floor and an open stairwell leading to a retail space for art supplies. Hours could be flexible to coincide with events at the Morris PAC. 17 South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS B. South Bend Central Development Area (7) continued.... Mr. Makielski said that timing for opening the store is critical. Mr. Makielski needs to be out of the Mishawaka store by June 30, and needs temporary quarters to house its framing operations. Mr. Makielski needs to be open by August 15 to serve the Notre Dame students when they come back to school and if it doesn't make that deadline, students will take their business elsewhere and the business may be lost permanently. Makielski's original proposal was for the City to finish the space to a "vanilla box" and give it an allowance for tenant finishes. However, it would take two or three weeks for the City to get its work done which would delay Makielski getting access to the space to such a late date they could not meet their schedule. Makielski would like access to the space to begin portions of its work at the same time the City is having its work done and would like a letter of intent from the City before it spends money on the space. Mr. Makielski expects tenant finishes to run approximately $40 /sft. Ms. Greene advised and Mr. Hunt noted that the Commission cannot commit to work costing more than $75,000 without putting the work out to bid. That bid process takes approximately 30 days. Mr. Sassano, who was the architect for the Palais renovation and is the architect for 18 South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS B. South Bend Central Development Area (7) continued.... Makielski, stated that Makielski would like to have access to the space on Monday, June 9. He asked the Commission if there is any way to make an arrangement to turn the funds over to another agency in order to accomplish the proposed project that doesn't have the restrictions the Commission does. Ms. Greene advised that the Commission is a fiduciary of public funds and that it cannot just turn over public funds to a private entity. When the property was put up for bid, the Commission intended to provide a vanilla space, with much of the build -out to be done by the successful bidder for the project. If Makielski is willing to do all of the $40 /sft build -out, that is simpler. But if Makielski is looking for reimbursement from the Commission for some of those funds, then assuming the Commission agrees to Makielski's proposal, the work has to be negotiated and put up for bid. Mr. Sassano expressed concern that if the Commission tabled the proposal for two weeks, Makielski would not be able to meet its schedule of opening by August 15. The Commissioners offered to hold a special Commission meeting to put the work on a faster schedule if the staff and Makielski can work out the details of the proposal. Item 6.B.(7) was tabled. ITEM 6.B.(7) WAS TABLED. Mr. Kahn left the meeting at 10:45 a.m. L 19 South Bend Redevelopment Commission IL Regular Meeting —June 6, 2003 6. NEW BUSINESS B. South Bend Central Development Area (continued...) (2) Staff report on acquisition of Sycamore Street Properties in the South Bend Central Development Area. (East Bank Development) Mr. Mathia noted that through Resolution No. 1967, dated April 4, 2003, the Redevelopment Commission authorized an offer totaling $283,750 to acquire two (2) properties on Sycamore Street belonging to Mr. Ron Foudy. Counter offers were made and Mr. Foudy has accepted the last counter offer of $302,250. The subject property is currently for sale and vacant and the Commission would not incur any relocation costs if the acquisition is completed at this time. Mr. Mathia noted that acquisition of the properties will further the Commission's redevelopment goals and objectives for the South Bend Central Development Area in general and, more particularly, for the East Bank area. Staff recommends accepting the offer. Ms. Greene noted that the Commission has complied with I.C. 36- 7 -14 -19 which governs the procedure for acquisition of property. The offering price was initially based on the average of two appraisals. Consistent with the time line in this section of the Code, staff was authorized to negotiate. If the Commission accepts the counter offer in excess of the two appraisals, it must be because the Commission finds that the price is reasonable, and the acquisition is necessary and consistent with the plan for the area. 20 South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS B. South Bend Central Development Area (2) continued.... Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission accepted the counter offer in the amount of $302,250 for the properties with tax key numbers 18 -5004 -0048, 18- 5004 -0049, and 18 -5004 -0060 on Sycamore Street. (3) Staff report on disposition of property located in the South Bend Central Development Area. (401 E. Monroe, former Key Bank Drive Thru) Mr. Mathia noted that the closing date for offers to be received on the Key Bank Drive - Through was May 16. On that date one offer was received from Ganey Press Real Estate, LLP, a partnership affiliated with and wholly owned by Press, Ganey Associates, Inc. of South Bend. Unfortunately, during the review of the offer staff determined that the bid was non - responsive. Specifically, the Bid Specifications contained in the Redevelopment Commission's invitation to bid required a minimum offer of $275,500 for the property and submission of a faithful performance guaranty equal to 10% of the amount offered in the bid. Ganey Press Real Estate offered $250,000 as its purchase price, $25,500 less than the required minimum offer. In addition, the required 10% performance guaranty was not included with the bid. However, the partnership generally met the other Bid Specifications contained in the invitation to bid. In 21 COMMISSION ACCEPTED THE COUNTER OFFER IN THE AMOUNT OF $302,250 FOR THE PROPERTIES WITH TAX KEY NUMBERS 18-5004-0048,18- 5004-0049, AND 18 -5004 -0060 ON SYCAMORE STREET. South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS B. South Bend Central Development Area (3) continued.... addition, the proposal provides for the construction of a parking lot that will complement and facilitate the development of the River Glen Office Park which, in turn, will make a significant contribution to the overall development of the downtown area, a major objective of both the Redevelopment Commission and the City of South Bend. Staff recommends that the Commission reject the bid because it is non - responsive. Staff also recommends that, due to the offer's overall merit, the Redevelopment Commission authorize staff to negotiate with Ganey Press Real Estate, LLP in order to more fully develop a project concept and budget which would be submitted at a later date for the Commission's review and approval. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission referred rejected the bid of Ganey Press Real Estate, LLP for 402 E. Monroe and authorized staff to negotiate with Ganey Press Real Estate, LLP to come up with an acceptable offer. (4) Commission approval requested for Amendment II to proposal for professional services with Danch, Harner & Associates dated January 17, 2003. (Survey work, Chocolate Cafe/Hall of Fame site) 22 COMMISSION REFERRED REJECTED THE BID OF GANEY PRESS REAL ESTATE, LLP FOR 402 E. MONROE AND AUTHORIZED STAFF TO NEGOTIATE WITH GANEY PRESS REAL ESTATE, LLP TO COME UP WITH AN ACCEPTABLE OFFER South Bend Redevelopment Commission IL Regular Meeting —June 6, 2003 6. NEW BUSINESS B. South Bend Central Development Area (4) continued.... Mr. Mathia noted that the survey firm of Danch, Hamer & Associates was contracted by the Redevelopment Commission to complete the survey work to replat a parcel of land to be transferred from the Hall of Fame for the Chocolate Cafe Expansion Project. As part of the replat review process, the Department of Public Works has requested Danch, Hamer to complete a field inspection for utilities that may be located under or near the proposed addition. Danch, Hamer has provided a quote not to exceed $600 for the additional services. In addition staff would like Danch Hamer to assist with preparation of the site plan for the project area. The additional cost for this service is estimated to be $750. This service may be necessary to design a site plan that will meet Fire Department requirements for fire truck access to the site. This concern was recently voiced by the Fire Department. The Commission has already approved an amount not to exceed $4,250 for the survey and preliminary site plan work. The two proposed increases total $1,350. With these increases the new not -to- exceed amount for the contract would be $5,600. Staff recommends approving the proposals from Danch, Hamer for additional work related to the proposed expansion of the Chocolate Cafe. IL 23 South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS B. South Bend Central Development Area (4) continued.... Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved the request for additional professional services and authorized staff to retain Danch, Hamer Associates for the scope of services and fees proposed. (5) Commission authorization requested to issue twelve (12) temporary parking passes to 1" Source Bank for the Leighton Garage. Mr. Mathia explained that 1st Source Bank is preparing to renovate and improve its Jefferson Boulevard parking lot. This lot is located behind the Main and Jefferson project site. The bank has requested that the Redevelopment Commission issue twelve (12) temporary parking passes to the Leighton Garage in order to make room for the renovation work. The work is expected to begin the week of June 9 and it is anticipated that it will take no more than one month to complete. In its Contract for Purchase and Sale of Real Estate; the Commission agreed to cooperate with 1st Source to develop a staging plan while it remodels the parking lot pursuant to the site plan. The total cost in parking fees for two (2) months would be $960. Staff recommends approval of the 1" Source request. 24 COMMISSION APPROVED THE REQUEST FOR ADDITIONAL PROFESSIONAL SERVICES AND AUTHORIZED STAFF TO RETAIN DANCH, HARNER ASSOCIATES FOR THE SCOPE OF SERVICES AND FEES PROPOSED. (SURVEY WORK, CHOCOLATE CAFE /HALL OF FAME SITE) South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS B. South Bend Central Development Area (5) continued.... Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission authorized staff to issue twelve parking passes for the Leighton Garage to 1 S` Source bank for two months. (6) Commission authorization requested for permission to construct a trash dumpster enclosure in a parking lot on Commission owned property located in the South Bend Central Development Area. (Senior Kelly's) Mr. Mathia explained that Downtown South Bend, Inc. ( "DTSB ") has requested permission to construct an enclosure around the dumpsters located in the Senor Kelly's parking lot. The parking lot is owned by the Redevelopment Commission and DTSB has an agreement with the Commission to manage the lot. The dumpsters are located in the back of the lot on the southwest corner. The purpose of the enclosure is to improve the appearance of the parking lot. They would put some cedar fencing on both sides and then enclose it with a cyclone fence with plastic or cedar strips. There would be no cost to the Commission. Bob Hunt noted for the record that he is a member of the DTSB board. He will not benefit financially from the proposal. Ms. Greene advised that Mr. Hunt's membership with DTSB and the Commission would not constitute a conflict in this transaction. C25 COMMISSION AUTHORIZED STAFF TO ISSUE TWELVE PARKING PASSES FOR THE LEIGHTON GARAGE TO I ST SOURCE BANK FOR TWO MONTHS. South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS B. South Bend Central Development Area (6) continued.... Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved the screening of the dumpsters in the Senior Kelly parking lot according to the conditions set out in the letter and authorized staff to send the letter to DTSB. C. Sample -Ewing Development Area (1) Staff report and recommendation on negotiations with Rose Fuel & Materials, Inc. IL Mr. Laurent noted that on May 2, 2003 the Commission received a bid from Rose Fuel & Materials, Inc. for land in the Oliver Industrial Park. At the May 16, 2003 the Commission rejected the bid because it required the Commission to significantly increase the value of the Boilerhouse. The Commission requested staff to continue meeting with Rose Fuel in order to negotiate an agreement that the Commission might find acceptable. This is an update as well as a request for approval for the course of action the staff is headed down in negotiations for disposition of property. The basics of the revised proposal are as follows: ► The boundaries of the site have been revised to accommodate Hill Truck Sales. 26 COMMISSION APPROVED THE SCREENING OF THE DUMPSTERS IN THE SENOR KELLY PARKING LOT ACCORDING TO THE CONDITIONS SET OUT IN THE LETTER AND AUTHORIZED STAFF TO SEND THE LETTER TO DTSB. South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS C. Sample -Ewing Development Area (1) continued.... ► The maintenance building has been turned 90 degrees and is now located at the south end of the site. ► The Commission will assume the following obligations: • Interior demolition of fixtures within the boilerhouse. All boilers, conveyors, catwalks, non - structural framing and coal hoppers will be removed. • The floor will be rough leveled, repaired, and concrete pads removed. • All interior floor penetrations will be IL in- filled— including all of those to the basement. No interior access to the basement will remain. • The existing built -up roof membrane will be removed down to the existing roof deck. The roof deck will be repaired/ replaced as necessary and a new membrane roof will be installed. Drain lines will be inspected and repaired/replaced as necessary to make them operational. • Masonry repair will be done as necessary. This will include tuck pointing of mortar joints, rebuilding of certain parapet sections, brick replacement as needed, applying of mortar wash on top of corbelled brick, repair and replacement of concrete accents, removal of metal embedment (including the coal chute and Building 14 attachment hardware 27 South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS C. Sample -Ewing Development Area (1) continued.... from all masonry walls inside and out), and cleaning of exterior brick. (The east elevation lead -based paint surfaces still need to be resolved.) • Stabilization and repair of the smokestack. This will include removal of the unstable uppermost portion of the smokestack. Additional material will be added back to the smokestack in order to bring it to the approximate as -built height and will return the "O" to "OLIVER" which is on the north northeast elevation of the stack. • Windows (including main level and clerestory) will be replaced, with a maximum contribution of $255,000. The clerestory will have a Sky -Wall or approved equivalent installed, while the main floor windows will be non - reflective tinted insulated glass. • Extension of water and sewer to the property line. • Construction of a roadway from Chapin Street that will allow permanent access to the site. This roadway will be a dedicated street and will serve as an access point to all other parcels in the Oliver Industrial Park. • Grading of the site, including capping of the former coal dump and filling of the pit that straddles the 28 1. 1 4 r South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS C. Sample -Ewing Development Area (1) continued.... east elevation wall just south of the smokestack. • Abatement or covering of lead based paint on the exterior of the building. • Enclosing of south doorway on east elevation. Exterior finish will be matching brick, while interior shall be C.M.U. enclosure. • Enclosure of overhead door on south elevation, and installation of a new set of double doors installed in an eight foot by eight foot doorway. Exterior finish will be matching brick, while interior shall be C.M.U. enclosure. • Preparation of a topographic survey of the property based on a fifty (50) foot grid. ► Rose Fuel & Materials, Inc. will assume the following obligations: • Invest a minimum of $1,200,000 in the boilerhouse property. • Construct all interior build -out and finishes including the showroom and office concept as presented in the bid submitted May 2, 2003. • Site improvements are to include landscaping and screening. • Conduct any cleaning and painting of interior masonry or steel surfaces. • Installation of new entry door systems on north and south elevations of the boilerhouse. • Construction of any basement 29 South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS C. Sample -Ewing Development Area (1) continued.... improvements (if desired). • Installation of an HVAC system meeting all building codes. • Cleaning and painting of interior brick as needed (including lead base paint abatement if necessary). • Construction of a new steel frame masonry veneer 7,500 square foot storage building on the site. • Paving the surface of, and installing curbing around, the storage areas and parking areas. • Construction of an outdoor area to IL display hardscape materials. • Construction of an approved masonry monument sign. • Apply 2" leveling concrete or masonry surface to Boilerhouse floor. The staff recommends accepting the revised proposal from Rose Fuel and authorizing staff to finalize a Development Agreement and Contract for Sale of Land to be approved at a later meeting. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission accepted the revised proposal from Rose Fuel for land in the Sample - Ewing Development Area and authorized staff to prepare a development agreement and Contract for Sale of Land. 30 COMMISSION ACCEPTED THE REVISED PROPOSAL FROM ROSE FUEL FOR LAND IN THE SAMPLE - EWING DEVELOPMENT AREA AND AUTHORIZED STAFF TO PREPARE A DEVELOPMENT AGREEMENT AND CONTRACT FOR SALE OF LAND. , i . , South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS C. Sample -Ewing Development Area (continued...) (2) Staff report and recommendation on negotiations with Hill Truck Sales, Inc. Mr. Laurent noted that at its May 2, 2003 meeting the Commission received a bid from Hill Truck Sales, Inc. for a parcel of land in the Oliver Industrial Park. At the regular meeting of the Commission on May 16, 2003, the bid was rejected because an unpaved slag parking area was proposed by the bidder. The Commission directed staff to negotiate with Hill Truck Sales to reach an agreement which would allow Hill Truck Sales to expand their business in the Sample -Ewing Development Area. Mr. Laurent reported that the staff has meet numerous times with representatives from Hill Truck Sales and we are working towards a formal agreement for disposition of land. The elements of the agreement are: ► The size of the parcel that Hill would like to purchase has increased in size to 160 feet by 420 feet. The initial bid proposed a parcel that was 100x420. Staff has worked with Rose Fuel to accommodate this larger proposed site and all parties are satisfied with the current site plan. ► The original bid made the acquisition of land in the Industrial Park contingent upon striking a deal to purchase a 50 foot strip of land from the City at the back of 31 South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS C. Sample -Ewing Development Area (2) continued... that property, but Hill is no longer interested in that land. Hill has expressed an interest in acquiring 10 feet of property from Raitt Corporation, which owns property east of Hill's current facility. That number reflects both parties' desire to not interfere with an AEP pole line running north to south 10 feet east of the current shared property line. The proposed surface of the expanded parking lot is crushed concrete or slag material, which would require a variance from the Board of Zoning Appeals. Hill has requested that the Commission sell some of its supply of crushed concrete currently stockpiled at the Oliver site for surfacing of the new parcel. The material would be sealed to create a quasi -paved surface. Hill has also requested that they be allowed to construct the drainage of the new surface to the old standard of thirty gallons per one hundred square feet of impermeable surface. Staff recommends accepting the revised proposal from Hill Truck Sales, Inc. with the condition that the Board of Zoning Appeals and the Building Department must approve any variance in parking surface and drainage requirements. 32 0 , 4 . . - , South Bend Redevelopment Commission (Aw�Regular Meeting —June 6, 2003 6. NEW BUSINESS C. Sample -Ewing Development Area (2) continued... Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission accepted the proposal from Hill Truck Sales for land in the Sample -Ewing Development Area, with the condition that the Board of Zoning Appeals and the Building Department must approve any variance in parking surface and drainage requirements. D. Airport Economic Development Area (1) Commission approval requested for Letter of Agreement from Baker & v' Daniels to serve as Legal Bond Counsel for the Airport Tax Increment Finance (TIF) Revenue Bond Financing. Mr. Rock noted that Baker & Daniels has submitted a proposal to provide bond counsel for the Airport TIF Revenue Bond Financing. The proposed fee is a not -to- exceed amount of $18,000. Upon a motion by Ms. Jones, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Letter of Agreement from Baker & Daniels to serve as Legal Bond Counsel for the Airport Tax Increment Finance (TIF) Revenue Bond Financing. (2) Commission approval requested for Letter of Agreement from Crowe Chizek to perform financial advisory services for the Airport Area and Bond Refundings. 33 COMMISSION ACCEPTED THE PROPOSAL FROM HILL TRUCK SALES FOR LAND IN THE SAMPLE - EWING DEVELOPMENT AREA, WITH THE CONDITION THAT THE BOARD OF ZONING APPEALS AND THE BUILDING DEPARTMENT MUST APPROVE ANY VARIANCE IN PARKING SURFACE AND DRAINAGE REQUIREMENTS. COMMISSION APPROVED THE LETTER OF AGREEMENT FROM BAKER & DANIELS TO SERVE AS LEGAL BOND COUNSEL FOR THE AIRPORT TAX INCREMENT FINANCE (TIF) REVENUE BOND FINANCING. ' ' 1 14 South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS D. Airport Economic Development Area (2) continued... Mr. Rock noted that Crowe Chizek has submitted a proposal to provide financial advisory services for the Airport TIF Revenue Bond Financing. The proposed fee is a not -to- exceed amount of $35,000. Upon a motion by Mr. Faccenda, seconded by Ms. Jones and unanimously carried, the Commission approved the Letter of Agreement from Crowe Chizek to perform financial advisory services for the Airport Area and Bond Refundings. E. South Bend Medical Services District (1) Commission approval requested for First Amendment to Development Agreement with Memorial Hospital. (Expansion Project) Ms. Greene explained that the First Amendment amends Exhibit B to the Development Agreement which is the Project Schedule. The amendment changes the dates for vacation of Bartlett Street and the dates for reconfiguration of Michigan/Main/ Marion from a commencement date in 2004 to a commencement date of 2006. This delays the City's investment in this infrastructure for two years. COMMISSION APPROVED THE LETTER OF AGREEMENT FROM CROWE CHIZEK TO PERFORM FINANCIAL ADVISORY SERVICES FOR THE AIRPORT AREA AND BOND REFUNDINGS. Upon a motion by Ms. Jones, seconded by COMMISSION APPROVED THE FIRST AMENDMENT Mr. Faccenda and unanimously carried, the TO DEVELOPMENT AGREEMENT WITH MEMORIAL Commission approved the First Amendment HOSPITAL. (EXPANSION PROJECT) to Development Agreement with Memorial Hospital. (Expansion Project) 34 South Bend Redevelopment Commission Regular Meeting —June 6, 2003 6. NEW BUSINESS (CONT.) F. West Washington Chapin Development Area There was no business in the West Washington Chapin Development Area. 7. PROGRESS REPORTS There were no Progress Reports 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for Friday, June 20, 2003 at 10:00 a.m. 9. ADJOURNMENT No BUSINESS THERE WERE NO PROGRESS REPORTS NEXT COMMISSION MEETING There being no further business to come before the ADJOURNMENT Redevelopment Commission, Ms. Jones made a motion that the meeting be adjourned. Mr. Faccenda seconded the motion and the meeting was adjourned at 11:00 a.m. `ter/ Robert W. Hunt, President 35 1 Donald E. Inks, Director