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HomeMy WebLinkAbout03-07-03 Redevelopment Commission Minutes14 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING March 7, 2003 10:00 a.m. Presiding: Robert W. Hunt, President 1. ROLL CALL Members Present: Members Absent: Legal Counsel: 227 West Jefferson Boulevard South Bend, Indiana Mr. Robert W. Hunt, President Ms. Marcia Jones, Vice - President Mr. Hardie Blake, Jr. Mr. Philip J. Faccenda, Secretary Mr. Matt Kahn Ms. Cheryl Greene Redevelopment Staff: Mr. Donald Inks, Director Ms. Pamela Morris, Recording Secretary Mr. Owen Rock, Economic Development Specialist Mr. Bill Schalliol, Economic Development Specialist Mr. Robert Mathia, Economic Development Specialist Mr. Robert Case, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Ms. Jennifer Hughes, Economic Development Planner Others Present: Ms. Pam Paluszewski, Legal Mr. Jim Frick, South Gateway Association Mr. Mike Hardy Mr. Greg Noble Ms. Loren Priest Mr. Steve Monroe Ms. Diane Monroe Ms. Jo Wise Ms. Phyllis M. Barkley 2. APPROVAL OF MINUTES A. Commission approval of the Minutes of the Regular Meeting of February 7, 2003. The minutes were not available for approval. THE MINUTES WERE NOT AVAILABLE FOR APPROVAL. 1 South Bend Redevelopment Commission Regular Meeting —March 7, 2003 2. APPROVAL OF MINUTES (CONT.) B. Commission approval of the Minutes of the Regular Meeting of February 21, 2003. 3. APPROVAL OF CLAIMS THE MINUTES WERE NOT AVAILABLE FOR APPROVAL. Redevelopment Commission Claims submitted March 7, 2003 for approval. 212 CDBG COMMUNITY DEVELOPMENT Petty Cash South Bend Tribune General Fund - Telephone Federal Express Jonathan E. Baker Wyndham City Center National Development Council Training Division 324 FUND The Troyer Group, Inc. Panzica Building Corporation South Bend Monument Works Everett Fence Corporation Abonmarche Consultants of Indiana L.L.C. Shamrock Network Design Sitescapes Inc. John Becker Wiss, Janney, Elstner Associates, Inc. 420 SBCDA CB Richard Ellis South Bend Danch, Harper & Associates Jerome E. Michaels Appraisal Group, Inc. Champion Water Conditioning & Bottled Water Bank One 427 SAMPLE/EWING - CAPITAL FUND Weaver, Boos and Gordon National Environmental Services Corp. Moody's Investor Service K 58.00 47.30 200.00 154.59 400.00 1,114.09 925.00 44,344.00 10,964.00 2,360.00 1,800.00 21,871.00 450.00 525.00 20,000.00 2,479.30 683.42 900.00 2,500.00 3,500.00 209.80 800.00 32,661.71 413,430.08 6.500.00 y9z �s South Bend Redevelopment Commission Regular Meeting —March 7, 2003 3. APPROVAL OF CLAIMS (CONT.) Mr. Hunt inquired about the National Environmental Services Corp. claim in the amount of $413,430.08, 427 Sample/Ewing - Capital Fund. Mr. Inks responded that the claim was for site work regarding the TJX Project. Mr. Inks also noted the claim is one installment on a contract just over $2M. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted March 7, 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 Hearings COMMISSION APPROVED THE CLAIMS SUBMITTED MARCH 7, 2003, AND ORDERED THE CHECKS TO BE RELEASED. THERE WERE NO COMMUNICATIONS. THERE WAS NO OLD BUSINESS. (1) Public Hearing on Resolution No. 1952 amending the South Bend Central Development Area Development Plan. Mr. Rock reported that Resolution No. 1952 will add a parcel of property to the South Bend Central Development Area Development Plan acquisition list. The Tax Key No. is 18- 3016 -0589 and the address is 420 S. Main Street, more commonly known as Blessings Music. Currently the Commission owns Lots 1 & 2 in this area, and the addition of this parcel would make the property more desirable to a potential R South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) A. Public Hearings (1) continued... developer by adding additional parking for Lots 1 & 2. Presently, the plan calls for this block to be designated as secondary service commercial and retail commercial. Although this is a small change to the development plan it is consistent with the block to the east of the parcel where the bankruptcy court is located. This block would become part of the public core to Central Business District. In addition, this site could be a major catalyst to the development of the south side of the Central Development Area. Currently, the staff is working with the Studebaker Museum to ILrelocate them within the area. Also located within the area is the publicly owned Coveleski Baseball Stadium. Ms. Greene noted that when Resolution No. 1952 was filed, the notice provided for three parcels of property to be added to the Plan's acquisition list. The Commission has taken no action on Resolution No. 1952 and Resolution No. 1952 has been revised as presented to the Commission today to only add one parcel of property. The property owners have been advised as to the change. Ms. Greene asked Mr. Rock if acquisition of the property is consistent with the South Bend Central Development Area Development Plan, and if the development plan can be accomplished without acquisition of that property? IL South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) A. Public Hearings (1) continued... Mr. Rock responded it would be very difficult to accomplish the development plan without acquisition of the property. Mr. Inks advised that the public hearing file was complete and requested the following items be entered into the record: (1) Affidavits from the Tri County News and South Bend Tribune that the Notice of Public Hearing was published in those newspapers on February 14, 2003; (2) A statement from Mr. Rock that on February 13, 2003, copies of the Notice of Public Hearing were sent to the affected ILproperty owners and registered neighborhood associations; (3) A copy of the Notice of Hearing; (4) A copy of Resolution 1952; and (5) As of 10:00 a.m. this morning, no written remonstrances were received. Mr. Hunt opened the Public Hearing on Resolution No. 1952 and asked if there was anyone who wished to speak. There being no one who wished to speak regarding Resolution No. 1952, Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. (2) Commission approval requested for Resolution No. 1952. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 1952 amending the South Bend Central Development Area Development Plan. PUBLIC HEARING, RESOLUTION NO. 1952 COMMISSION APPROVED RESOLUTION NO. 1952 AMENDING THE SOUTH BEND CENTRAL DEVELOPMENT AREA DEVELOPMENT PLAN. South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) A. Public Hearings (3) Public Hearing on Resolution No. 1957 amending the South Side Development Area Development Plan. Mr. Inks advised that the public hearing file was complete and requested the following items be entered into the record: (1) Affidavits from the Tri County News and South Bend Tribune that the Notice of Public Hearing was published in those newspapers on February 21, 2003; (2) A statement from Mr. Schalliol that on February 21, 2003, copies of the Notice of Public Hearing were sent to the affected property owners and registered neighborhood associations; (3) A copy of the IL Notice of Hearing; (4) A copy of Resolution No. 1957; and (5) As of 10:00 a.m. this morning, no written remonstrances were received. Mr. Schalliol reported that Resolution No. 1957 amends the South Side Development Area Development Plan by adding six (6) pieces of property to the acquisition list. The first property is a vacant parcel and is located at 719 Widener Lane, Tax Key No. 23- 1035- 1839.01. This property is being added to the acquisition list to facilitate long term infrastructure improvements. Acquisition of the property is consistent with the area development plan and necessary for interchange improvements at the intersection of Miami and the by -pass. The remaining five parcels are a block of property located along and addressed to 4605 S. Main Street, owned by Steven and Diane Monroe. The Tax Key Nos. range from 23- 1030 -1619, 1620, 1621, 1622 and 0 South Bend Redevelopment Commission IL Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) A. Public Hearings (3) continued... 1623. Four of the five are vacant properties and one is an occupied residence. They are adjacent to the Fitterling site and acquisition is necessary to accomplish long term redevelopment of the Fitterling site; they are also needed as part of a larger potential project development site. Ms. Greene asked Mr. Schalliol if these properties are consistent with the South Side Development Plan as previously presented and approved by the Commission. Mr. Schalliol responded in the affirmative. He further explained that this project site, and the Fitterling site more specifically, is described within the South Side Development Area Plan and was confirmed on December 20, 2002. It is also a concern for the development of the South Gateway sub -area. Ms. Greene asked Mr. Schalliol if it is necessary that those specific properties be acquired in order to accomplish this development plan? Mr. Schalliol stated that was correct. Mr. Hunt opened the Public Hearing on PUBLIC HEARING ON RESOLUTION No. 1957. Resolution No. 1957 and asked if there was anyone who wished to speak. Mr. Jim Frick, President of South Gateway Association, advised that the Association is very much in favor of the project, wants the project to move forward and believes acquisition of the properties is very 7 South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) A. Public Hearings (3) continued... important to the development of the south side. Mr. Steven Monroe, owner of the five properties located on S. Main Street, advised that he was approached by two different developers at the time this project started. The property is under contract to be sold to a developer. Mr. Monroe stated he has no intention of standing in the way of any development whatsoever and would greatly appreciate development on the south side. Mr. Monroe explained he is not sure what to do at this point; however, the property is ILsold to a developer. Ms. Greene advised Mr. Monroe that it was not her role to give him legal advice and that she acts solely as legal counsel to the Commission. She advised him that he should follow up with his own attorney. Ms. Greene explained that the Redevelopment Commission, in order to accomplish a development of a particular area, is allowed to purchase property and then make it available for redevelopment. The first step the Commission has to take is to add property they need to acquire for redevelopment to an acquisition list, which is what is happening today. A notice goes out to the property owner. Ms. Greene then asked if Mr. Monroe had closed on the properties. Mr. Monroe's response was no they have not. South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) A. Public Hearings (3) continued... Ms. Greene explained that since there has been no closing as yet, the Monroes are still the property owners of record. Ms. Greene asked if Mr. Monroe could provide the Commission with a copy of the contract. She explained the first step is to add the property to the acquisition list, it is expected the next step is for the Commission to authorize a purchase offer to buy the property from the owners of record. That purchase offer will be based on the average of two independent appraisals that the Commission is required by law to obtain. As the owners of record, Mr. Monroe will ILhave the opportunity to review that purchase offer which spells out all of his legal rights. He will then have the opportunity to negotiate with staff members. Today's action does not constitute the acquisition, simply a beginning to that process. Again, Ms. Greene asked if Mr. Monroe would provide a copy of the current contract with the developer and also keep the Commission advised as he moves forward. Ms. Greene noted that it was her understanding that Mr. Monroe was not at the meeting to remonstrate or object to the project. Mr. Monroe confirmed that he was not there to remonstrate and that he has no intention of altering the plans for the project at all and invites the construction and development of the area. L1 South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) A. Public Hearings (3) continued... Mr. Hunt noted that at some point in time the Commission may be dealing with a different owner. Ms. Greene advised Mr. Monroe if he does move forward with the property sale, he needs to keep the Commission informed so they can always be dealing with the owner. Mr. Hunt asked if there was anyone else who wished to speak regarding Resolution No. 1957. There being no one else who wished to speak regarding Resolution No. 1957, Mr. Hunt closed the Public ILI Hearing for whatever action the Commission wished to take. (4) Commission approval requested for Resolution No. 1957. Upon a motion by Ms. Jones, seconded by COMMISSION APPROVED RESOLUTION No. 1957 Mr. Blake and unanimously carried, the AMENDING THE SOUTH SIDE DEVELOPMENT Commission approved Resolution No. 1957 AREA DEVELOPMENT PLAN. amending the South Side Development Area Development Plan. (5) Public Hearing on Resolution No. 1958 amending the Airport Economic Development Area Development Plan. Mr. Inks advised that the public hearing file was complete and requested the following items be entered into the record: (1) Affidavits from the Tri County News and South Bend Tribune that the Notice of Public Hearing was published in those newspapers on February 14, 2003; (2) A statement from Mr. Schalliol that on 10 South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) A. Public Hearings (5) continued... February 21, 2003, copies of the Notice of Public Hearing were sent to the affected property owners and registered neighborhood associations; (3) A copy of the Notice of Hearing; (4) A copy of Resolution 1958; and (5) As of 10:00 a.m. this morning, no written remonstrances were received. Mr. Schalliol reported that Resolution No. 1958 adds Lot 2 of the Ameriplex Olive Road Minor Subdivision, which is Tax Key No. 25- 1011 - 0187.09, to the acquisition list of the Airport Economic Development Area Development Plan. It is a two acre piece of property that will in the future facilitate a larger development on the northeast corner of Cleveland Road and Olive Road. Mr. Hunt asked if Lot 2 is adjacent to the residential property line. Mr. Schalliol responded that there is no frontage on Olive directly. The acquisition is necessary for the future development and consistent with the long term goals of the Airport area. Mr. Hunt opened the Public Hearing on Resolution No. 1958 and asked if there was anyone who wished to speak. There being no one who wished to speak regarding Resolution No. 1958, Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. „� 11 PUBLIC HEARING oN RESOLUTION NO. 1958. South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) A. Public Hearings (6) Commission approval requested for Resolution No. 1958. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 1958 amending the Airport Economic Development Area Development Plan. B. South Bend Central Development Area (1) Commission approval requested for Resolution No. 1961 approving the fair re -use value of property in the South Bend Central Development Area. (Main & Jefferson project site) Mr. Mathis reported that Resolution No. 1961 sets the fair re -use value for the property referred to as the Main & Jeffereson Project Site, Lot Number 260A. The property is located on the southwest corner of Main Street and Jefferson Boulevard in the South Bend Central Development Area. The area of the property is approximately 0.84 acres (36,464 sq ft). The property is currently vacant. Staff recommends approval of Resolution No. 1961. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 1961 approving the fair re -use value of property in the South Bend Central Development Area. (Main & Jefferson project site) 12 COMMISSION APPROVED RESOLUTION NO. 1958 AMENDING THE AIRPORT ECONOMIC DEVELOPMENT AREA DEVELOPMENT PLAN. COMMISSION APPROVED RESOLUTION NO. 1961 APPROVING THE FAIR RE -USE VALUE OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (MAIN & JEFFERSON PROJECT SITE) South Bend Redevelopment Commission Regular Meeting —March 7, 2003 IL 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) Commission approval requested for Bid Specifications and Design Considerations for property in the South Bend Central Development Area. (Main & Jefferson project site) Mr. Mathia advised that approved Bid Specifications must be included in the Bid Packet for disposition of the Main & Jefferson Project Site (Lot No. 260A). Bid Specifications & Design Considerations are highlighted as follows: ► All offers must meet the minimum price of $263,000. ► The site purchase must include all 0.84 acres (36,464 sq ft) being bid. ► The required use for the property is commercial (office and/or retail development). Said development must make full use of the site. At a minimum, a 60,000 sq ft building with a minimum height of four stories shall be constructed. The building will be required to abut the public sidewalk along both Main Street and Jefferson Blvd. Service facilities including dumpsters and utility boxes must be adequately screened. All proposed designs must include provision for an 18 foot wide east -west access easement located on the south side of the site that will extend from Main Street to the north -south alley. ► Any portion of the site not used for buildings, streets, parking, loading/staging areas or driveways shall IL be planted and maintained as a 13 South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... landscaped area. ► Bidders are required to present their proposals at the April 4, 2003 Regular Meeting of the Redevelopment Commission. Staff recommends approval of the Bid Specifications. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved the Bid Specifications and Design Considerations for property in the South Bend Central ILDevelopment Area. (Main & Jefferson project site) (3) Commission authorization requested to publish the Notice for Disposition of Land with publication dates of March 14, 2003 and March 21, 2003 and Receipt of Bids at 10:00 a.m. on April 4, 2003. (Main & Jefferson project site) Mr. Mathia requested the Commission's authorization to publish the required notifications for the Main and Jefferson property disposition in the South Bend Tribune and the Tri County News. The notices are to be published on March 14, 2003 and March 21, 2003 in both newspapers. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission authorized publication of the IL Notice for Disposition of Land with publication dates of March 14, 2003 and 14 COMMISSION APPROVED THE BID SPECIFICATIONS AND DESIGN CONSIDERATIONS FOR PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (MAIN & JEFFERSON PROJECT SITE) South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) continued... March 21, 2003 and Receipt of Bids at 10:00 COMMISSION AUTHORIZED PUBLICATION OF THE a.m. on April 4, 2003. (Main & Jefferson NOTICE FOR DISPOSITION OF LAND WITH project site) PUBLICATION DATES OF MARCH 14, 2003 AND MARCH 21, 2003 AND RECEIPT OF BIDS AT 10:00 A.M. ON APRIL 4, 2003. MAIN & JEFFERSON PROJECT SITE) (4) Staff report on acquisition of property in the South Bend Central Development Area. (517 & 529 E. Colfax Ave. & 211 N. Hill St.) Mr. Schalliol reported that two counter offers were received for purchase offers sent based on Resolution No. 1956. The parcels of land are located at the northwest corner of North Hill Street and Colfax Avenue. The counter offers for the three parcels are as follows: ► Tax Key No. 18 -5005 -0129 Located at 211 N. Hill Street Owned by Vern & Mary Margaret Planck Family Trust Original Offer: $25,250 Counter Offer: $48,012 ► Tax Key No. 18 -5005 -0128 Located at 517 E. Colfax Avenue Tax Key No. 18 -5005 -0130 Located at 529 E. Colfax Avenue Owned by Ernest L. Bryant Original Offer: $142,500 Counter Offer: $203,988 Mr. Schalliol noted that there are three parcels and two owners. The parcel owned by the single owner is in the middle of the other two parcels. We cannot purchase two 15 South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued... parcels without buying the third one. Mr. Schalliol also noted that we are buying the property over multiple years. As part of the negotiations, a percentage was added to the acquisition price in lieu of interest. The properties will be purchased over a six year time period at a total of $42,000 per year payout. It is pro -rated and at higher cost, but it accomplishes several key goals for the East Bank Master Plan. The parcel is a large, very underutilized piece of property on a very visible corner. The property is an eye -sore and has a history of code enforcement issues. Purchase of these ILproperties will not only take care of a problem property, but will allow the Commission to own a marketable piece of property in the East Bank. The counter offers are a little high; however, acquiring them will meet the goals and objectives set forth in the South Bend Central Development Area Development Plan. Ms. Greene explained that essentially the Commission is not actually paying an amount that constitutes the purchase price plus interest over six years. The fair market value will actually be paid plus interest. Mr. Hunt asked why the price for the middle parcel was double the others. Mr. Schalliol responded that it is because the other parcels cannot be used without it. IL Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the 16 South Bend Redevelopment Commission IL Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued... Commission approved Counter Offers on acquisition of property in the South Bend Central Development Area. (517 & 529 E Colfax Ave. & 211 N. Hill St.) (5) Staff report on request for use of the Wayne Street Garage. (Rooftop Rendezvous) Mr. Williams reported that the Commission approved the use of the Wayne Street garage at the February 7, 2003 Redevelopment Commission Meeting for the AIDS Ministries Rooftop Rendezvous. The dates approved were June 20, July 11 and August 8, 2003. A request has been made by the AIDS Ministries to change the August 8, 2003 date to August 15, 2003. Mr. Hunt asked if that was the only change requested. Ms. Greene responded that no new events are being added, only the change of date. Upon a motion by Mr. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved the AIDS Ministries request for a change of date for the use of the Wayne Street garage on August 15, 2003. (Rooftop Rendezvous) (6) Commission approval requested for Resolution No. 1962 ratifying, confirming and approving certain actions related to the South Bend Community School IL Corporation Project. 17 COMMISSION APPROVED COUNTER OFFERS ON ACQUISITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (517 & 529 E. COLFAX AVE. & 211 N. HILL ST.) COMMISSION APPROVED THE AIDS MINISTRIES REQUEST FOR A CHANGE OF DATE FOR THE USE OF THE WAYNE STREET GARAGE ON AUGUST 15, 2003. (ROOFTOP RENDEZVOUS) South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (6) continued... Mr. Rock reported that Resolution No. 1962 approves a Memorandum of Understanding (MOU) that has been approved by the South Bend School Corporation and executed by Mayor Luecke of The City of South Bend. The Commission's actions today will be ratifying, confirming and approving the MOU. Ms. Greene advised that the Commission has been previously briefed on this matter and requested that the MOU be incorporated into the record. It was noted that the Mayor has the authority to sign contracts; however, those contracts are made valid by action of the body that will be carrying out the actual contract performance. Resolution No. 1962 requests the Commission to ratify the Mayor's signature. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 1962 ratifying, confirming and approving certain actions related to the South Bend Community School Corporation Project. C. Sample -Ewing Development Area (1) Presentation of project proposals for Studebaker Corridor Parcel 7 located in the Sample -Ewing Development Area. (Bell Parts Supply, Inc. and Ziolkowski Construction, Inc.) Mr. Inks requested that Item 6.C.1. be IL tabled. There were no objections and the Commission tabled Item 6.C.1. 19 COMMISSION APPROVED RESOLUTION NO. 1962 RATIFYING, CONFIRMING AND APPROVING CERTAIN ACTIONS RELATED TO THE SOUTH BEND COMMUNITY SCHOOL CORPORATION PROJECT. COMMISSION TABLED ITEM 6.C.1. South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) Commission approval requested for proposal for professional services in the Airport Economic Development Area. (Title work, Ancon & Mahler properties) Mr. Williams reported title searches were requested for two parcels of property specifically known as Tax Key Nos. 25- 1011- 018709 and 04- 1011 -0189 for possible acquisition. Meridian Title Corporation submitted a proposal for both properties in the total amount of $200. Staff recommends accepting the proposal from Meridian Title Corporation. IL Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved the request for professional services in the Airport Economic Development Area and authorized staff to retain Meridian Title Corporation based on the scope of services and fee proposed. (Title work, Ancon & Mahler properties) (2) Commission approval requested for proposal for professional services in the Airport Economic Development Area. (Appraisal work, Ancon & Mahler properties) Mr. Williams reported appraisal work was requested for two parcels of property specifically known as Tax Key Nos. 25- 1011- 018709 and 04- 1011 -0189 for possible acquisition. Two appraisals are required for each property. Proposals have been received from Jerome E. Michaels & Associates in IL the amount of $3,000 and R. E. Pitts & Associates in the amount of $3,750 for a 19 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN MERIDIAN TITLE CORPORATION BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (TITLE WORK, ANCON & MAHLER PROPERTIES) South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (2) continued... combined total of $6,750 for both properties. Staff recommends accepting the proposals from Jerome E. Michaels & Associates and R.E. Pitts & Associates. Upon a motion by Ms. Jones, seconded by COMMISSION APPROVED THE REQUEST FOR Mr. Blake and unanimously carried, the PROFESSIONAL SERVICES IN THE AIRPORT Commission approved the request for ECONOMIC DEVELOPMENT AREA AND professional services in the Airport AUTHORIZED STAFF TO RETAIN JEROME E. MICHAELS & ASSOCIATES AND R. E. PITTS & Economic Development Area and ASSOCIATES BASED ON THE SCOPE OF SERVICES authorized staff to retain Jerome E. Michaels AND FEES PROPOSED. (APPRAISAL WORK, & Associates and R. E. Pitts & Associates ANCON & MAHLER PROPERTIES) based on the scope of services and fees proposed. (Appraisal work, Ancon & ILMahler properties) (3) Commission approval requested for proposal for professional services in the Airport Economic Development Area. (Survey work, Ancon & Mahler properties) Mr. Williams reported survey work was requested for two parcels of property specifically known as Tax Key Nos. 25- 1011- 018709 and 04- 1011 -0189 for possible acquisition. Danch, Harper & Associates submitted a proposal for both properties in the total amount of $2,450. Staff recommends accepting the proposal from Danch, Harper & Associates. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved the request for Caw professional services in the Airport Economic Development Area and authorized staff to retain Danch, Harper & 20 South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (3) continued... Associates based on the scope of services COMMISSION APPROVED THE REQUEST FOR and fee proposed. (Survey work, Ancon & PROFESSIONAL SERVICES IN THE AIRPORT Mahler properties) ECONOMIC DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN DANCH, HARNER & ASSOCIATES BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (SURVEY WORK, ANCON & MAHLER PROPERTIES) (4) Commission approval requested for Resolution No. 1963 rescinding its Resolution No. 1931, dated February 7, 2003 and further rescinding its Resolution No. 1951, dated February 21, 2003. Ms. Greene advised that Resolution No. 1963 is a resolution to rescind two previous resolutions: Resolution No. 1931 which the Commission approved on February 7, 2003 and Resolution No. 1951 which the Commission approved on February 21, 2003. Resolution No. 1931 added the properties to the acquisition list of the Airport Economic Development Area Development Plan and Resolution No. 1951 set the fair offering price on the three pieces of property. It has subsequently been determined that those properties were in error and staff is requesting the Commission rescind the two previous resolutions. Mr. Greene noted for the record that no actions have been taken resulting from either resolution. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 1963 rescinding its Resolution No. 1931, dated 21 COMMISSION APPROVED RESOLUTION NO. 1963 RESCINDING ITS RESOLUTION NO. 1931, DATED FEBRUARY 7, 2003 AND FURTHER RESCINDING ITS RESOLUTION NO. 1951, DATED FEBRUARY 21, 2003. South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (4) continued... February 7, 2003 and further rescinding its Resolution No. 1951, dated February 21, 2003. E. South Bend Medical Services District There was no business in the South Bend Medical Services District. G. South Side Development. Area (1) Commission approval requested for Resolution No. 1955 designating and declaring the South Side Economic ILI Development Project District, approving the South Side Economic Development Project District Development Plan and determining to create an Economic Development Project District for purposes of sales tax increment financing. Mr. Schalliol advised that the action taken by the Commission today would not be approving Resolution No. 1955, only the filing of Resolution No. 1955 and setting a hearing for March 21, 2003. Upon a motion by Ms. Jones, seconded by Mr. Blake and unanimously carried, the Commission accepted for filing Resolution No. 1955 and set a hearing on Resolution No. 1955 for March 21, 2003 at 10:00 a.m. at a Regular Meeting of the Redevelopment Commission. (w 22 THERE WAS NO BUSINESS IN THE SOUTH BEND MEDICAL SERVICES DISTRICT. COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 1955 AND SET A HEARING ON RESOLUTION NO. 1955 FOR MARCH 21, 2003 AT 10:00 A.M. AT A REGULAR MEETING OF THE REDEVELOPMENT COMMISSION. South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) G. South Side Development Area (2) Commission approval requested for Memorandum of Understanding between the South Bend Redevelopment Commission and Anchor Associates. concerning the Anchor Associates Development Project. Ms. Greene noted that the Commission had been previously briefed on the Memorandum of Understanding (MOU) with Anchor Associates. Mr. Schalliol highlighted major points of the Anchor Associates Development Project. The project begins at the southwest corner of Michigan and Ireland and continues west to ILthe Industrial Park. In the center of the site is the Fitterling Project Development Site. The MOU sets out a two phase project. The first phase is the eastern phase, which at its minimum would develop 115,000 sq ft. Phase II is the western half of the site and would total up to 300,000 sq ft of development space. Commercial and retail development are the goals for the project area. This will be a challenging project and there are several key points within the MOU. (1) The City has some support requirements for vacation of some of the public streets; (2) There's an opportunity for an option on the Fire Station property which would then allow it to be relocated off -site, somewhere else within the South Side Development Area; (3) One of the early development issues to be dealt with is an AEP power line that runs through the center of the Phase I site; (4) Long term there will be issues 23 South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) G. South Side Development Area (2) continued... regarding the Fitterling site. The City requirements detailed in the MOU will be detailed more specifically within a Development Agreement. The City, through its Redevelopment Commission, will use TIF money where available and generated from this project site to put back into the site for some of the needed improvements. There are other funding mechanisms as previously discussed. The project is currently on track and moving forward. Mr. Hunt asked if the shopping strip next to the fire station would ultimately be acquired? Mr. Schalliol responded, yes; however, the bank, restaurant and a professional office building would remain on -site. Ms. Greene noted that in the MOU many of the existing businesses remain. She also noted that the fire station referenced in the MOU is not a full scale fire station. There are only two ambulances and it would not be a difficult matter to relocate the station.02 Ms. Greene advised that the MOU is the first stage of the process. The next step will be generating a Development Agreement. The project will then proceed from there. (W 24 Am [A A South Bend Redevelopment Commission Regular Meeting —March 7, 2003 6. NEW BUSINESS (CONT.) G. South Side Development Area (2) continued... Upon a motion by Ms. Jones, seconded by COMMISSION APPROVED THE MEMORANDUM OF Mr. Blake and unanimously carried, the UNDERSTANDING BETWEEN THE SOUTH BEND Commission approved the Memorandum of REDEVELOPMENT COMMISSION AND ANCHOR ASSOCIATES. Understanding between the South Bend Redevelopment Commission and Anchor Associates. H. Other There was no Other business. 7. PROGRESS REPORTS Mr. Rock reported the Main and Jefferson Project went out to bid. Mr. Rock commended the great job performed by the Legal Department, the Commission, Mr. Bob Mathia and everyone else involved in the project. Mr. Schalliol reported on the concept site plan that was in the newspapers and on television for the mall site. The big news with this project is that the mall disappears and almost equal square footage to actual store space will be built in its place. The goal is national retailers and within the next couple of weeks there will be an announcement of who those retailers will be. Staff is weeks away from a Memorandum of Understanding or Development Agreement. Ms. Greene noted there have been a lot of questions raised as to the mall concept itself, but, realistically, indoor malls are very expensive. The tenants have increased costs of interior maintenance, heating, air conditioning, security, etc. Even though this will be 25 THERE WAS NO OTHER BUSINESS. PROGRESS C+J South Bend Redevelopment Commission Regular Meeting —March 7, 2003 7. PROGRESS REPORTS (CONT.) a different concept from the current Scottsdale interior mall, hopefully it will be more affordable for tenants. The concept has received a lot a favorable and very positive comments. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for March 21, 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 10:50 a.m. Robert W. Hunt, President 26 NEXT COMMISSION MEETING ADJOURNMENT II Donald E. Inks, Director MOU Between City of South Bend and SBCSC City's Responsibilities City will purchase Lots 1, 2, 3, 4, and 5 (Exhibit "A" attached). The City currently owns Lots 1 and 2. 2. City will put Lots 1, 2, 3, 4 and 5 up for public bid The City will accept from SBCSC the 3 acre parcel for the TJX site owned by SBCSC along with $307,000 for Lots 1, 2, 3, 4, and 5. SBCSC will execute an agreement with TRANSPO for Lot 8. SBCSC will transfer Lots 10 and 11 to the City provided the City has an agreement with HLFI to accept Lots 10 and 11 from the City. If the City cannot negotiate an agreement with HLFI then the project will not proceed. 4. The City will bear all costs associated with purchasing Lots 1, 2, 3, 4, and 5 along with demolishing any buildings upon these Lots. 5. The City will allow SBCSC to transfer the property to a third party to construct and own a building and grounds which will be leased to SBCSC. 6. The City will not provide a tax abatement for the project. At the end of the lease with the third party the building and property will become tax exempt. SBCSC Responsibilities 1. SBCSC will construct a 40,000 to 50,000 sq ft building upon the development site. 2. SBCSC agrees to bid on the development site when it is offered for disposition 3. SBCSC agrees to transfer approximately 3 acres of land associated with the TJX project to the City and to pay $307,000 for Lots 1, 2, 3, 4, and 5. Also SBCSC agrees to execute an agreement with TRANSPO for Lot 8 and to transfer Lots 10 and 11 to HLFI. The project does not proceed if the City cannot negotiate an agreement with HLFI. 4. SBCSC will accept the development site "as is" by quit claim deed. Miscellaneous 1. The City and SBCSC will develop a plan for the site that is acceptable to both parties and is consistent with the South Bend Central Development Area Plan. 2. The City is relying on SBCSC to construct a 40,000 to 50,000 sq. ft. building to house approximately 150 employees and the primary use of the building will be to provide office, meeting, conference, training and other related uses. 3. The transaction will not continue if; (1) SBCSC determines the project is not feasible, (2) SBCSC does not enter into a separate agreement with TRANSPO for Lot 8, (3) The City is unable to negotiate an agreement with HLFI, (4) or otherwise mutually agreed by the parties. A EXHIBIT A ANCHOR ASSOCIATES PROJECT MEMORANDUM OF UNDERSTANDING ( "MOU ") March 7, 2003 1) Purpose. The purpose of this MOU is to summarize the list of commitments that the negotiating teams for Anchor Associates ( "Developer ") and South Bend Redevelopment Commission ( "Commission "), governing body of the Commission of South Bend Department of Redevelopment have made to one another to date. As soon as reasonably possible, the negotiating teams agree to work together to reduce the MOU to a more formal development agreement (the "Development Agreement "). Finally, this signed MOU will allow both parties to initiate the next series of actions required to move the project forward with a better understanding of the type and degree of risk involved at this stage of the Project. 2) Transfer & Assignment of Rights. Developer may, at its option, transfer any portion of the Development site, as shown on the general site plan attached hereto as Attachment 1 (the "Anchor Site "), and assign its corresponding rights under this MOU and/or the Development Agreement that follows to another party. It is the intention of Developer to develop the Anchor Site as a retail shopping area and to add more high - quality retail stores for the citizens of South Bend, Indiana. Notwithstanding any such assignment or transfer, Developer shall remain legally responsible for all of the performance goals and failure to perform penalties outlined in this MOU and, in more detail, in the Development Agreement. Additionally, the assignee would have the same corresponding contractual rights and ILdevelopment obligations as Developer has under this MOU and /or Development Agreement. 3) Project Phases: The Parties understand and agree that this Project may be accomplished in Phases as described at Attachment 2 attached hereto. Phase I of the Project shall include the construction of a minimum of 115,000 ± square foot retail establishment as an anchor tenant. Phase I shall be accomplished on the area of the proposed development site that is situated east of and shall include part of the property commonly known as the Fitterling site located on Ireland Road. Phase II of the Project shall include the construction of additional multiple retail establishments with a total collective square footage consisting of up to 300,000± square feet. Phase II shall be accomplished on the area of the proposed development site that is situated west of and shall include part of the property commonly known as the Fitterling site located on Ireland Road. 4) Site Assemblage. Commission shall facilitate the Project by assisting Developer in assembling a development site as shown on Attachment 1. In accomplishing such action, Commission shall follow the procedures set forth at Ind. Code § 36- 7 -14 -1, et seq., by which the Commission is bound. In order to afford a maximum opportunity for redevelopment of the South Side Development Area ( "SSDA ") and the Development Site, and as authorized by Ind. Code § 36- 7- 14 -20, Commission hereby agrees to initiate eminent domain as a means to acquire property ( "Acquired Parcels ") to accomplish the Project following the procedure set forth at Ind. Code § 3 2- 11 -1 -1, et seq provided, however, that the property sought to be acquired by such means is necessary to accomplish the Project, the property will be utilized for a public use and public purpose, and that such use of the property is consistent with the SSDA Plan. Those properties which the parties have identified as having the potential for acquisition by the Commission are described on Attachment 3 incorporated herein. a) Fire Station. Commission hereby acknowledges that the Project may involve construction by Developer on the property currently being utilized as a fire station on Ireland Road. Commission, upon request by Developer, agrees to relocate the fire station and to then offer the property for sale through the public bidding process prescribed by Ind. Code § 36- 7- 14 -22, or through a negotiated sale as permitted by Ind. Code § 36- 7- 14- 22(h), said negotiated sale may provide for the granting of a one (1) year option to Developer to purchase the fire station parcel at a price to be agreed upon in the Development Agreement. b) Street Vacation. Consistent with City policy, Commission agrees to endorse and support Developer's efforts to vacate portions of South Main, Lafayette, South Hoover and Auten so that Developer can be assured that a unified, contiguous development parcel is available for private development and endorse and support Developer in its efforts related to rezoning where necessary consistent with the use intended. 5) Anchor Site Stores. Developer and the Commission will jointly prepare and agree on a list of the type of retail stores to be recruited for the development in order to meet the public expectation of South Bend citizens and customers and to justify the public assistance requested. Developer agrees to prepare, fund and implement a retail development strategy with the following objectives in terms of the square footage, type, mix and general quality of retails stores: * One or more Discount Department Stores (with or without groceries); * Home Improvement Store; * Restaurants; and * Specialty Retailers (books, sporting goods, home accessories, etc.) 6) Indemnification. Upon acquisition by the Commission, Developer, or its designated agent, shall make an offer to purchase the Acquired Parcels, either as separate parcels or as an assembled site, in an amount equal to or greater than the minimum acceptable bid and shall meet or exceed all bid specifications as set by the Commission in accordance with Ind. Code § 36- 7- 14- 22(c). If Commission proceeds with acquisition of the Acquired Parcels and, for whatsoever reason, Developer does not purchase the Acquired Parcels from Commission, Developer shall reimburse the Commission in an amount which is the difference between the selling price of the Acquired Parcels received by the Commission and the total cost of acquisition, including appraisals, title, survey, and closing costs and shall, as a penalty, pay the Commission the sum of One Hundred Thousand and 00 /100 Dollars ($100,000.00) ( "Penalty "). Developer shall pay said Penalty to Commission on the date that Commission closes the transaction to purchase the Acquired Parcels and the Penalty shall either be (i) credited to Developer at closing of Developer's purchase of the Acquired Parcels from Commission or (ii) retained by Commission as provided herein. Should Developer desire to terminate its obligations to purchase the Acquired Parcels prior to acquisition by the Commission, Developer shall only be obligated to reimburse the Commission for its third 2 party out -of pocket expenses, including without limitation appraisal, title, and survey expenses, if applicable. Neither the Commission nor Developer will be required to reimburse the other party for predevelopment costs incurred prior to the execution of the MOU. 7) Financing of Infrastructure Improvements. Developer has requested that the Commission provide certain infrastructure improvements to the Anchor Site (the "Infrastructure Improvements "). The Parties intend that the Infrastructure Improvements shall be paid for through Tax Incremental Financing ( "TIF ") or by the Developer and /or the tenant/end -user ( "Tenant ") in which case the Developer or Tenant shall request tax abatement from the City. In December, 2002, the Commission created a Tax Increment Financing Allocation Area ( "TIF Area ") for the Project area. To the extent that TIF revenues are generated from the Anchor Site, Commission agrees to utilize said funds to facilitate Infrastructure Improvements for the Anchor Site as defined in Paragraph 8, below, and in a manner consistent with Indiana law governing the use of such funds, provided, however, Commission's investment is capped at an amount not to exceed expected TIF revenues to be generated by the Project. In the event the Developer determines not to pursue the use of TIF and determines that Developer or Tenant shall pay for such Infrastructure Improvements, the Developer or Tenant may request that City provide tax abatement as permitted by law, it being the intent of the Developer that the savings realized as a result of tax abatement offset all or some portion of the cost of Infrastructure Improvements. If Infrastructure Improvements are to be accomplished by use of a TIF bond issue, the Commission shall pay for the Infrastructure Improvements up to the amount that may be paid for from the available proceeds of such financing. Developer and Commission shall work together to prepare a schedule ( "Project Schedule ") detailing the timing of the Infrastructure Improvements. 8) Infrastructure Improvements. Subject to financial limitations established by the Parties and financing options as referenced in paragraph 7 as well as the limitations set by law, the Commission agrees to cooperate with Developer to provide certain Infrastructure Improvements which may include, among others: a) Street Improvements. The improvement of the turn lanes and signalization at West Ireland and U.S. 31 South, signalization on West Ireland and on Main Street, and widen West Ireland pursuant to requirements suggested by traffic studies in order to provide efficient and safe movement of vehicles for the Anchor Site stores and customers and adjacent businesses and facilities. Developer shall provide adequate right -of -way to facilitate the aforementioned improvements along Ireland Road from property owned or acquired by Developer for the Project. Other necessary property for the right -of -way shall be acquired by Commission. Further, the Commission agrees to work with Developer and the Indiana Department of Transportation to secure direct access to the Anchor Site from U.S. 31 South. b) Perimeter Improvements. If determined to be necessary and appropriate, provide new curbs, sidewalks, lighting and streetscape on the perimeter of the existing and expanded Anchor Site. The specific design and engineering aspects of the perimeter improvements will be coordinated with Developer's design plan for internal improvements to the Anchor Site. In the event that Developer requests that City install any special lighting as part of this Project, Developer hereby agrees to bear any 3 increased cost that is over and above City's customary and usual expense for lighting within the City of South Bend. c) On -site Public Utilities/Easements. Provide utilities to the site. Developer agrees to make all the necessary utility hook -ups from the site boundary to the individual buildings. Developer also agrees to work with the City to develop a site plan which minimizes the need to relocate major utility lines already in place on the present site and on the proposed site plan. d) On -site Private Utilities /Easements. Developer agrees to work with the private utility providers to secure any necessary relocation of private utilities. The Commission agrees to support Developer in its efforts with the private utilities. e) Zoning Variance, Special Permits, Etc. The parties acknowledge that the Anchor site shall be located within a redevelopment district known as the "South Side Development Area" and accordingly, development shall be accomplished consistent with the South Side Development Area Development Plan. Consistent with the South Side Development Area Development Plan. Consistent with the governing City policy and the South Side Development Area Plan, the Commission agrees to endorse and support Developer in its efforts to seek zoning, variance, subdivision, right -of -way vacation, or special permit(s) required to complete the Project. f) Environmental Remediation. As determined to be necessary and appropriate, provide environmental and/or geotechnical testing and remediation. g) Demolition. To demolish the existing improvements located on the site. 9) Private Investment. Developer agrees to the following investment goals for the project: * Level of Private Investment: A minimum of Seven Million Dollars ($7,000,000) will be invested in the development of the Anchor Site at Phase I, whether through equity, debt, and third -party investment, with the final amount to depend on its ultimate square footage. * The type of private investment includes, but is not limited to, acquisition, demolition, construction, tenant improvements, soft costs, and closing expenses. 10) Failure to Perform. Both parties recognize that the Project requires a strong private - public partnership in order that all Project goals can be achieved. The Commission has committed to a series of large -scale public investments in land acquisition and public improvements. Should Developer fall short on the investment targets, the Commission will require that Developer reimburse the Commission on a basis to be agreed upon in the Development Agreement. 11) Agreement to Date. 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