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HomeMy WebLinkAbout12-06-02 Redevelopment Commission Minutesl A 1P_ L SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING December 6, 2002 10:00 a.m. 227 West Jefferson Boulevard Presiding: Robert W. Hunt, President South Bend, Indiana 1. ROLL CALL Members Present: Mr. Robert W. Hunt, President Ms. Marcia Jones, Vice - President Mr. Matt Kahn Member Absent: Mr. Philip J. Faccenda Legal Counsel: Ms. Cheryl Greene Redevelopment Staff: Mr. Donald Inks, Director Ms. Cheryl Phipps, Recording Secretary Mr. Owen Rock, Assistant Director Mr. Mike Beitzinger, Assistant Director, Econ Development Mr. Bill Schalliol, Economic Development Planner Mr. Robert Mathia, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Others Present: Ms. Pam Paluszewski, Legal Department Mr. Jim Cierzniak Mr. Tim Firestone, Blackthorn Golf Course Mr. John Quickstad, Blackthorn Golf Course Mr. Scott Nissley, Meadowbrook Golf Management Mr. Tom Skarbek, Administration & Finance Department Dan Ceglia, COO, Advantage Puck 2. APPROVAL OF MINUTES A. Commission approval of the Minutes of the Regular Meeting of November 1, 2002. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the Minutes of the Regular Meeting of November 1, 2002. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF NOVEMBER 1, 2002. A C South Bend Redevelopment Commission Regular Meeting— December 6, 2002 2. APPROVAL OF MINUTES (CONT.) B. Commission approval of the Minutes of the Regular Meeting of November 15, 2002. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the Minutes of the Regular Meeting of November 15, 2002. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF NOVEMBER 15, 2002. Redevelopment Commission Claims submitted December 6, 2002 for approval. 212 CDBG COMMUNITY DEVELOPMENT South Bend Tribune Tri County News, Inc. Ann Kolata The Performance Institute Owen Rock The Armstrong Stamp Co. Andy Laurent General Fund - Telephone Federal Express Insty -Print IEDC Baker & Daniels Bill Schalliol 324 FUND Dave Talboom Lawn Maintenance Kenney Outdoor Solutions DLZ Abonmarche Consultants Shamrock Network Design Advanced Irrigation Sitescapes Inc. Meridian Title Corporation 182.34 151.78 168.00 795.00 300.23 7.05 133.00 207.18 15.59 6.40 135.00 799.40 236.37 2,720.00 6,121.23 10,976.49 8,250.65 150.00 1,678.50 804.18 19,075.00 t � South Bend Redevelopment Commission Regular Meeting— December 6, 2002 3. CLAIMS (CONT.) 414 SAMPLE -EWING DEVELOPMENT AREA Plews Shadley Racher & Braum Jonathan E. Baker 420 SBCDA Bank One R. E. Pitts & Associates 424 FUND CB Richard Ellis 427 SAMPLE/EWING - CAPITAL FUND Baker & Daniels City of South Bend - COIT 433 REDEVELOPMENT Urban Land Institute Urban Land Institute 619 BLACKTHORN Meadowbrook Golf Group, Inc. Mr. Hunt requested an explanation of the $4,042,210.73 claim under 427 SAMPLE/EWING - CAPITAL FUND. Mr. Inks explained that Fund 427 is a new fund which was set up to receive the proceeds of bonds related to the TJX Project. The project had been funded on a temporary basis throughout most of 2002 using COIT funds. The $4,042,210.73 is reimbursement to COIT for TJX related project expenses. L 1,923.87 800.00 750.00 2,500.00 2,278.60 38,598.31 4,042,210.73 15,000.00 20,000.00 7,000.00 $ 4,183,974.90 South Bend Redevelopment Commission Regular Meeting— December 6, 2002 3. CLAIMS (CONT.) Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the Claims submitted December 6, 2002, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS Ms. Greene requested that a correction be made to the agenda. Item 6.I.1. which currently reads IL Commission approval requested for Resolution No. 1928 is actually the filing of Resolution No. 1928 and the setting of a public hearing for December 20, 2002. There were no objections and the correction was made to item 6.I.1. A. Public Hearings (1) Public Hearing on Resolution No. 1922 amending the South Bend Central Development Area Development Plan. Mr. Mathia reported that Resolution No. 1922 will add one parcel of property to the South Bend Central Development Area acquisition list. The parcel is located at 416 S. Main Street and is commonly known as Franny's Restaurant. The parcel is currently listed for sale or lease by the owner C 4 COMMISSION APPROVED THE CLAIMS SUBMITTED DECEMBER 6, 2002, AND ORDERED THE CHECKS TO BE RELEASED. THERE WERE NO COMMUNICATIONS. THERE WAS NO OLD BUSINESS. CORRECTION WAS MADE TO ITEM 6.I. 1. South Bend Redevelopment Commission ILI Regular Meeting— December 6, 2002 6. NEW BUSINESS (CONT.) A. Public Hearings (1) continued... and is contiguous with property already owned by the Commission that is located on the southeast corner of Main and Western. The Commission's property is being held for future development. Acquisition of the parcel will facilitate the development of the total site and the acquisition is necessary to and consistent with the goals and objectives of the Development Plan for the South Bend Central Development Area. Staff recommends approval of Resolution No. 1922. Mr. Inks noted that the Public Hearing file was complete and requested that the following items related to the public hearing be entered into the record: (1) Affidavits from the South Bend Tribune and the Tri- County News that the Notice of Public Hearing was published in those newspapers on November 22, 2002; (2) A statement from Mr. Robert Mathia that on November 15, 2002, copies of the Notice of Public Hearing were sent to the affected property owners and registered neighborhood associations; (3) copy of the Notice of Hearing; (4) copy of Resolution No. 1922; and (5) As of 10:00 a.m. this morning, no written remonstrances were received. Mr. Hunt opened the Public Hearing on Resolution No. 1922 and asked if there was anyone who wished to speak. There being no one who wished to speak regarding PUBLIC HEARING ON RESOLUTION No. 1922. South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS (CONT.) A. Public Hearings (1) continued... Resolution No. 1922, Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. (2) Commission approval requested for Resolution No. 1922. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1922 amending the South Bend Central Development Area Development Plan. (3) Public Hearing on Resolution No. 1923 ILappropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2002, and ending December 31, 2002, including all outstanding claims and obligations, fixing a time when the same shall take effect. (South Bend Central Development Area) Mr. Rock reported that the monies, in the amount of $25,846, are reimbursements from the South Bend Central Development Area TIF for the expenses of the South Bend Central Development Area Building Operations Budget —Fund 424 which includes the Wayne Street Garage, Wayne Street Garage Retail Space and the Palais Royale Retail Spaces. Mr. Rock also noted a reimbursement from the Palais Royale for common area maintenance in the amount of $9,740. L6 COMMISSION APPROVED RESOLUTION NO. 1922 AMENDING THE SOUTH BEND CENTRAL DEVELOPMENT AREA DEVELOPMENT PLAN. South Bend Redevelopment Commission _ Regular Meeting— December 6, 2002 6. NEW BUSINESS (CONT.) A. Public Hearings (3) continued... Mr. Inks noted that the Public Hearing file was complete and requested that the following items related to the public hearing be entered into the record: Affidavits from the Tri County News and South Bend Tribune that the Notice of Public Hearing was published in those newspapers on November 15, 2002, a copy of the Notice of Hearing and a copy of Resolution No. 1923. Mr. Hunt opened the Public Hearing on Resolution No. 1923 and asked if there was anyone who wished to speak. There being no one who wished to speak regarding IL Resolution No. 1923, Mr. Hunt closed the Public Hearing for whatever action the commission wished to take. (4) Commission approval requested for Resolution No. 1923. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 1923 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2002, and ending December 31, 2002, including all outstanding claims and obligations, fixing a time when the same shall take effect. (South Bend Central Development Area) L PUBLIC HEARING ON RESOLUTION No. 1923. COMMISSION APPROVED RESOLUTION NO. 1923 APPROPRIATING MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2002, AND ENDING DECEMBER 31, 2002, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT. (SOUTH BEND CENTRAL DEVELOPMENT AREA) South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS A. Public Hearings (continued...) (5) Public Hearing on Resolution No. 1924 As Amended appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2002, and ending December 31, 2002, including all outstanding claims and obligations, fixing a time when the same shall take effect. (Airport Economic Development Area) Mr. Rock reported that the appropriation is related to expenses for the Blackthorn Golf Course. It was noted that Mr. Scott Nissley, Meadowbrook Golf Management, was also present to respond to questions by the Commission. Mr. Inks noted that the Public Hearing file was complete and requested that the following items related to the public hearing be entered into the record: Affidavits from the Tri County News and South Bend Tribune that the Notice of Public Hearing was published in those newspapers on November 15, 2002, a copy of the Notice of Hearing and a copy of Resolution No. 1924. Mr. Hunt opened the Public Hearing on PUBLIC HEARING ON RESOLUTION No. 1924. Resolution No. 1924 and asked if there was anyone who wished to speak. Mr. Jim Cierzniak of 1156 E. Victoria Street requested a staff report on the economic conditions related to business at Blackthorn Golf Course. A South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS A. Public Hearings (5) continued... Mr. Scott Nissley advised that a joint committee meeting to discuss Blackthorn expenses is scheduled for December 19, 2002. The monies appropriated in Resolution No. 1924 As Amended are funds for expenses that exceeded the 2002 projected expense budget during the fiscal year. To support the request for funds, Mr. Nissley provided the Commission with an outline of the 2002 Projected Expenses versus 2002 Budget. It is projected that the total of all expenses including payroll and the sum of all other operating expenses, cost of goods sold, and the unbudgeted Global Positioning System expenses will exceed the 2002 budget by $16,091. Mr. Nissley further explained that the exceeded expenses were, in most part, due to a change in the method of conducting transactions with Parview (GPS), the rental of four additional golf carts for the season, and the success of the Blackthorn Association Program whereby the fees for a handicap account are paid from membership fees. Mr. Hunt asked if there was anyone else who wished to speak. There being no one else who wished to speak regarding Resolution No. 1924, Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. E A South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS A. Public Hearings (continued...) (6) Commission approval requested for Resolution No. 1924. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1924 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2002, and ending December 31, 2002, including all outstanding claims and obligations, fixing a time when the same shall take effect. (Airport Economic Development Area) B. Tax Abatements IL(1) Commission approval requested for Resolution No. 1926 approving an application for real property tax deduction for property located at 1850 N. Sheridan Avenue in the Airport Economic Development Area. (Edison Lake View Assoc., L.L.P. and Advantage Puck Technologies) Mr. Beitzinger advised that the staff project summary report will combine items 6.B.1 (Resolution No. 1926) and 6.B.2. (Resolution No. 1927). Mr. Beitzinger reported that Advantage Puck Technologies is a new company to the City of South Bend, relocating from the City of Mishawaka. Advantage Puck Technologies is a manufacturer of injection molded plastic pieces used to hold various size metal, glass 10 COMMISSION APPROVED RESOLUTION NO. 1924 APPROPRIATING MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2002, AND ENDING DECEMBER 31, 2002, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT. (AIRPORT ECONOMIC DEVELOPMENT AREA) South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS B. Tax Abatements (1) continued... and plastic containers used primarily in the cosmetics industry. The plastic holders are designed to stabilize the containers during the labeling, filling, and/or capping processes. Advantage Puck is currently in the process of purchasing the former Canteen Services building located on North Sheridan Avenue. The building will be completely renovated and a 10,000 sft. addition will be constructed. The total cost of the building addition is estimated at $270,000. In addition to the building expansion project, Advantage Puck will expand its production capabilities with the purchase and/or lease of two to three new injection molding machines, and new grinders, lathes and mills. The total cost for the new equipment is estimated at $250,000, which makes the total project cost approximately $520,000 (not including the acquisition or renovation of the existing building). It is estimated that this project will create between four and six new permanent jobs within the first year, representing a new annual payroll of between $120,000 and $180,000. The project will also will maintain twenty -one current jobs, representing an annual payroll of $900,000 (for an average salary of over $42,000). A review of the tax abatements previously granted, finds that the petitioner has not 11 South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS B. Tax Abatements (1) continued... been granted any previous tax abatements. The property is properly zoned for the proposed projects. The property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore, the petitions for real and personal property tax abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that the petitioners, Edison Lake View Associates and Advantage Puck Technologies, meet the qualifications for a three year real property tax abatement; and Advantage Puck ILTechnologies meets the qualifications for a five year personal property tax abatement. Based on a total estimated project cost of $270,000 the cost of the real property tax abatement is as follows: Mr. Beitzinger introduced Mr. Dan Ceglia, COO of Advantage Puck Technologies. Mr. Ceglia advised that their company has outgrown the facilities currently being C, 12 Estimated taxes over three years Without abatement $14,359 With 3 -yr abatement $ 4,786 Estimated cost of three year abatement $ 9,573 Mr. Beitzinger introduced Mr. Dan Ceglia, COO of Advantage Puck Technologies. Mr. Ceglia advised that their company has outgrown the facilities currently being C, 12 South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS B. Tax Abatements (1) continued... utilized in Mishawaka. Molded plastic devices which hold various different cosmetic containers are manufactured. The device varies in size between three and four inches and will hold many different shapes for filling, capping and labeling cosmetic products. Essentially, every major cosmetic company is a customer of Advantage Puck which ships its products all over the world, including South Africa, Tiawan, Europe, etc. Advantage Puck has an operation in the United Kingdom and is presently branching into the drug industry. The advantage to the industry is when container sizes and shapes ILI are changed, the line remains the same. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1926 approving an application for real property tax deduction for property located at 1850 N. Sheridan Avenue in the Airport Economic Development Area. (Edison Lake View Assoc., L.L.P. and Advantage Puck Technologies) (2) Commission approval requested for Resolution No.1927 approving an application for personal property tax deduction for property located at 1850 N. Sheridan Avenue in the Airport Economic Development Area. (Advantage Puck Technologies) C 13 COMMISSION APPROVED RESOLUTION No. 1926 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1850 N. SHERIDAN AVENUE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (EDISON LAKE VIEW Assoc., L.L.P. AND ADVANTAGE PUCK TECHNOLOGIES) A A South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS B. Tax Abatements (2) continued... Based on a total estimated equipment cost of $250,000 the cost of the personal property tax abatement is as follows: Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1927 approving an application for personal property tax deduction for property located at 1850 N. Sheridan Avenue in the Airport Economic Development Area. (Advantage Puck Technologies) C. Housing (1) Commission approval requested for Subordination Agreement between the City of South Bend on behalf of its Bureau of Housing and Claudia J. Alkire. Ms. Greene reported that the Subordination Agreement is related to a mortgage executed by Claudia J. Alkire through the Bureau of Housing. The Commission, on behalf of the 14 COMMISSION APPROVED RESOLUTION NO. 1927 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1850 N. SHERIDAN AVENUE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (ADVANTAGE PUCK TECHNOLOGIES) Estimated taxes over five years Without abatement $42,707 With 5 -yr abatement $13,779 Estimated cost of five year abatement $28,928 Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1927 approving an application for personal property tax deduction for property located at 1850 N. Sheridan Avenue in the Airport Economic Development Area. (Advantage Puck Technologies) C. Housing (1) Commission approval requested for Subordination Agreement between the City of South Bend on behalf of its Bureau of Housing and Claudia J. Alkire. Ms. Greene reported that the Subordination Agreement is related to a mortgage executed by Claudia J. Alkire through the Bureau of Housing. The Commission, on behalf of the 14 COMMISSION APPROVED RESOLUTION NO. 1927 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1850 N. SHERIDAN AVENUE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (ADVANTAGE PUCK TECHNOLOGIES) South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS C. Housing (1) continued... Bureau of Housing, will be agreeing to subordinate its interest in the mortgage to Countywide Home Loans in the not -to- exceed amount of $34,164. The property is Lot Numbered Nine of North Sunnyside Second Addition to the City of South Bend. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried the Commission approved the Subordination Agreement between the City of South Bend on behalf of its Bureau of Housing and Claudia J. Alkire. (2) Commission approval requested for Certificate of Waiver for property located at 421 N. Blaine St. in connection with the Rental Rehab Program. (Nicholas L. and Mary Ann Kenkel) Mr. Inks reported that under the Rental Rehab loan program ten percent of the loan is waived each year if the conditions of the program are met. The dwelling has been inspected by the Building Department and all program conditions have been met. This Certificate of Waiver forgives $750.00 as of January 31, 2002. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the Certificate of Waiver for property located at 421 N. Blaine Street. (Nicholas L. and Mary Ann Kenkel) C 15 COMMISSION APPROVED THE SUBORDINATION AGREEMENT BETWEEN THE CITY OF SOUTH BEND ON BEHALF OF ITS BUREAU OF HOUSING AND CLAUDIA J. ALKIRE. COMMISSION APPROVED THE CERTIFICATE OF WAIVER FOR PROPERTY LOCATED AT 421 N. BLAINE STREET. (NICHOLAS L. AND MARY ANN KENKEL) South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS C. Housing (continued...) (3) Commission approval requested for Satisfaction of Obligations and Release of Mortgage for property located at 421 N. Blaine St. in connection with the Rental Rehab Program. (Nicholas L. and Mary Ann Kenkel) Mr. Inks advised that all obligations under the Real Estate Mortgage and Security Agreement related to the Rental Rehab loan for 421 N. Blaine Street have been waived or satisfied and the mortgage may be released. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the Satisfaction of Obligations and Release of Mortgage for property located at 421 N. Blaine Street. (Nicholas L. and Mary Ann Kenkel) D. South Bend Central Development Area (1) Commission approval requested for purchase of replacement trees for downtown South Bend. Mr. Mathia reported that as part of an effort to improve the general appearance of the downtown area staff has been discussing the replacement of several trees with Downtown South Bend, Inc. and the South Bend Park Department. The trees to be replaced number approximately twenty and are either diseased or already dead. The Park Department recommended that we obtain trees that are at least two inch caliper in size 16 COMMISSION APPROVED THE SATISFACTION OF OBLIGATIONS AND RELEASE OF MORTGAGE FOR PROPERTY LOCATED AT 421 N. BLAINE STREET. (NICHOLAS L. AND MARY ANN KENKEL) South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS D. South Bend Central Development Area (1) continued... in order to assure that they would survive in the downtown environment. Staff requested the Park Department to conduct a search of suppliers to locate such trees and obtain quotes for replacement. Due to scarcity, only one supplier was located, Windmill Acres, a regular supplier to the Park Department. An order was placed for an initial quantity of ten trees. The total cost for the ten trees is $1,750. The Park Department noted that the price is reasonable for the size and kind of trees purchased. The Park Department has agreed to remove the old trees and plant the new ILtrees at no cost to the Commission. Staff recommends approval of the initial purchase and approval to purchase up to ten additional trees at a cost not to exceed $2,000. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the purchase of twenty replacement trees for downtown South Bend. (2) Commission approval requested for professional services in the South Bend Central Development Area. (Phase I Environmental Assessment of the Main and Jefferson property) Mr. Mathia reported on a proposal from Grauvogel and Associates to perform a Phase I Environmental Assessment for the development site located on the southwest 17 COMMISSION APPROVED THE PURCHASE OF TWENTY REPLACEMENT TREES FOR DOWNTOWN SOUTH BEND. South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS D. South Bend Central Development Area (2) continued... corner of Main Street and Jefferson Blvd. A Phase I Environmental Assessment is required as part of the preparations for disposition of the site by the Commission. Grauvogel and Associates performed Phase I Assessments on individual parcels within the development site as they were acquired. Because of the knowledge Grauvogel and Associates obtained during the acquisition process, they are clearly the most qualified firm to complete a Phase I Assessment for the combined site. Staff has reviewed the proposal and found the time frame for completion and fee to be reasonable. Staff recommends accepting the proposal from Grauvogel and Associates in the amount of $2,390. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the request for professional services in the South Bend Central Development Area and authorized staff to retain Grauvogel and Associates based on the scope of services and fee proposed. (Phase I Environmental Assessment of the Main and Jefferson property) (3) Commission approval requested for professional services in the South Bend Central Development Area. (Survey work on 416 S. Main St.) C18 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN GRAUVOGEL AND ASSOCIATES BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (PHASE I ENVIRONMENTAL ASSESSMENT OF THE MAIN AND JEFFERSON PROPERTY) South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS D. South Bend Central Development Area (3) continued... Mr. Williams reported that three proposals were received for survey work at 416 S. Main Street, property commonly known as Franny's Restaurant. The proposals are as follows: Danch, Hamer & Associates $ 900 Lang, Feeney & Associates $1,275 Wightman Petrie, Inc. $1,300 Staff recommends accepting the proposal from Danch, Hamer & Associates in the amount of $900. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for professional services in the South Bend Central Development Area and authorized staff to retain Danch, Hamer & Associates based on the scope of services and fee proposed. (Survey work, 416 S. Main Street — Franny's Restaurant) (4) Commission approval requested for professional services in the South Bend Central Development Area. (Environmental assessment on 416 S. Main St.) Mr. Williams reported that three proposals were received for an environmental assessment on 416 S. Main Street, property commonly known as Franny's Restaurant. The proposals are as follows: C, 19 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN RANCH, HARNER & ASSOCIATES BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (SURVEY WORK, 416 S. MAIN STREET- FRANNY'S RESTAURANT) South Bend Redevelopment Commission ILRegular Meeting— December 6, 2002 6. NEW BUSINESS D. South Bend Central Development Area (4) continued... Grauvogel & Associates $2,050 Wightman Petrie Environmental $1,200 Envirocorp $1,300 Staff recommends accepting the proposal fromWightman Petrie Environmental in the amount of $1,200. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for professional services in the South Bend Central Development Area and authorized staff to retain Wightman Petrie ILEnvironmental based on the scope of services and fee proposed. (Environmental assessment, 416 S. Main Street— Franny's Restaurant) (5) Commission approval requested for First Amendment to Contract for Purchase and Sale of Real Estate. (AEC Building) Mr. Mathia reported that approval is being requested for an amendment to the subject contract which will change the method of payment. The original contract was signed by the Commission on October 19, 2001 with Crowe Chizek for the purchase of land surrounding the AEC building located at 348 Columbia Street. Under the contract the Commission was to pay $375,000 for the land, in five equal installments, over a term of five years with an interest rate of 6.5 %. In addition, the Commission was to provide 20 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN WIGHTMAN PETRIE ENVIRONMENTAL BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (ENVIRONMENTAL ASSESSMENT, 416 S. MAIN STREET- FRANNY'S RESTAURANT) South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS D. South Bend Central Development Area (5) continued... an in -kind contribution, valued at $150,000 to $175,000, in the form of public works for the Crowe Chizek expansion project that was completed this year. The total sum of cash paid and public works provided was to equal $550,000. The City, working through the Board of Public Works, could not identify sufficient public works to make up the difference. Also, two appraisals completed in 2002 for the Commission valued the land at an average price of $504,000. The purpose of the amendment is to formally record the revised payment of $550,000 in five installments. Staff recommends approval of the amendment. Ms. Greene noted that the Commission has agreed to the amendment by way of the development agreement which was previously executed with Crowe Chizek and this amendment to the Contract for Sale of Land is consistent with the development agreement. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the First Amendment to Contract for Purchase and Sale of Real Estate. (AEC Building) (6) Commission approval requested for Resolution No. 1929 approving the fair re -use value of property in the South Bend Central Development Area. (Palais Royale Building) 21 COMMISSION APPROVED THE FIRST AMENDMENT TO CONTRACT FOR PURCHASE AND SALE OF REAL ESTATE. (AEC BUILDING) South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS D. South Bend Central Development Area (6) continued... Mr. Mathia reported that Resolution No. 1929 sets the fair re -use value of property in the South Bend Central Development Area known as the Palais Royale building. The size of the property is approximately 0.34 acres and the floor area is 49,840 sft. The entire amount will be sold; however, the City will retain a permanent easement for active use of approximately 13,782 sft. The balance would then be available for a private- sector firm to purchase. The staff recommends approval of Resolution No. 1929. ILUpon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 1929 approving the fair re -use value of property in the South Bend Central Development Area. (Palais Royale Building) (7) Commission approval requested for Bid Specifications for property in the South Bend Central Development Area. (Palais Royale Building) Mr. Mathia highlighted the Bid Specifications and Design Considerations as follows: – All offers must meet the minimum price of $3,982,500. – The site purchase must include the total Palais Building and the land it is located on subject to certain permanent easements to be 22 COMMISSION APPROVED RESOLUTION NO. 1929 APPROVING THE FAIR RE -USE VALUE OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (PALAIs ROYALE BUILDING) South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS D. South Bend Central Development Area (7) continued... retained by the City of South Bend for its active use. — The required use for the property is as a ballroom/conference center/banquet facility. — All proposals for the property must conform to current zoning requirements set forth for "C" Commercial and "g" height and area as described in the South Bend Zoning Ordinance Title 21 of the City of South Bend Municipal Code. — Bidders are required to present their proposals at the December 30, 2002, Special Meeting of the Redevelopment Commission. — Only bids from private sector, for profit ILorganizations will be considered. — All other provisions of the South Bend Central Development Plan must be met. Mr. Mathia noted that, deferring from normal procedures, a performance bond will not be required due to timing and closing date restraints. Ms. Greene noted that the Palais Royale is a very unique property which explains why the procedures and actions related to the bid proposal are different. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the Bid Specifications for property in the South Bend Central Development Area. ( Palais Royale Building) 23 COMMISSION APPROVED THE BID SPECIFICATIONS FOR PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (PALAIs ROYALE BUILDING) South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS D. South Bend Central Development Area (continued...) (8) Commission authorization requested to publish the Notice for Disposition of Land with publication dates of December 13, 2002 and December 20, 2002 and receipt of Bids at 10:00 a.m. on December 30, 2002. (Palais Royale Ballroom) Mr. Mathia advised that part of the Bid Specifications and Design Considerations require proposals be presented at a Special Meeting to be held Monday, December 30, 2002, and published legal notification would be required. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the request to publish the Notice for Disposition of Land with publication dates of December 13, 2002 and December 20, 2002 and receipt of Bids at 10:00 a.m. on December 30, 2002. (Palais Royale Ballroom) E. Sample -Ewing Development Area (1) Commission approval requested for professional services in the Sample -Ewing Development Area. (Studebaker /Oliver Redevelopment Project) Mr. Laurent reported that there are three properties which are all located in the Studebaker /Oliver project area. Two appraisals are required for each property. Due to the complexity of the appraisals, staff solicited proposals from only MAI 24 COMMISSION APPROVED THE REQUEST TO PUBLISH THE NOTICE FOR DISPOSITION OF LAND WITH PUBLICATION DATES OF DECEMBER 13, 2002 AND DECEMBER 20, 2002 AND RECEIPT OF BIDS AT 10:00 A.M. ON DECEMBER 30, 2002. (PALAIS ROYALE BALLROOM) South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS E. Sample -Ewing Development Area (1) continued... appraisers. The proposals are as follows: IVY Tower - acquisition appraisal: R. E. Pitts & Associates $6,250 R. E. McCloskey & Associates $5,000 Jerome E. Michaels $9,700 Staff recommends accepting the proposals from R. E. Pitts & Associates and R. E. McCloskey & Associates in the amounts of $6,250 and $5,000 respectively. Oliver Plow Works nronerty - disposition appraisal: R. E. Pitts & Associates $4,300 R. E. McCloskey & Associates $2,500 Jerome E. Michaels $4,000 Staff recommends accepting the proposals from R. E. McCloskey & Associates and Jerome E. Michaels in the amounts of $2,500 and $4,000 respectively. Railroad property located at 601 West Broadway - acquisition appraisal: R. E. Pitts & Associates $3,450 R. E. McCloskey & Associates $2,500 Jerome E. Michaels $2,000 Staff recommends accepting the proposals from R. E. McCloskey & Associates and Jerome E. Michaels in the amounts of $2,500 and $2,000 respectively. C, 25 South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS E. Sample -Ewing Development Area (1) continued... Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the request for professional services in the Sample -Ewing Development Area and authorized staff to retain R. E. Pitts & Associates and R. E. McCloskey & Associates based on the scope of services and fee proposed. (Appraisal services, IVY Tower) Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the request for professional services in the Sample -Ewing Development Area and authorized staff to retain R. E. McCloskey & Associates and Jerome E. Michaels based on the scope of services and fee proposed. (Appraisal services, Oliver Plow Works property) Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the request for professional services in the Sample -Ewing Development Area and authorized staff to retain R. E. McCloskey & Associates and Jerome E. Michaels based on the scope of services and fee proposed. (Appraisal services, Railroad property located at 601 West Broadway) (2) Commission approval requested for professional services in the Sample -Ewing Development Area. (Groundwater testing) 26 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN R. E. PITTS & ASSOCIATES AND R. E. MCCLOSKEY & ASSOCIATES BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (APPRAISAL SERVICES, IVY TOWER) COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN R. E. MCCLOSKEY & ASSOCIATES AND JEROME E. MICHAELS BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (APPRAISAL SERVICES, OLIVER PLOW WORKS PROPERTY) COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN R. E. MCCLOSKEY & ASSOCIATES AND JEROME E. MICHAELS BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (APPRAISAL SERVICES, RAILROAD PROPERTY LOCATED AT 601 WEST BROADWAY) 7 South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS E. Sample -Ewing Development Area (2) continued... Mr. Laurent reported that a proposal was solicited from Hull & Associates to conduct groundwater sampling activities on the Oliver Plow Works site, and also the adjacent Peterson Printing property for potential acquisition purposes. Staff has received permission from Peterson Printing to conduct sampling activities on their property. Activities on the Oliver Plow Works site will be coordinated with the demolition contractor. This environmental work is a continuation of VRP efforts with the State. Staff recommends accepting the proposal in the not -to- exceed amount of $12,157. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for professional services in the Sample -Ewing Development Area and authorized staff to retain Hull & Associates, Inc. based on the scope of services and fee proposed. (Groundwater Testing, Oliver Plow/Peterson Printing property) (3) Commission approval requested for professional services in the Sample -Ewing Development Area. (Asbestos survey of Oliver Boilerhouse) Mr. Laurent reported that a proposal was solicited by staff to conduct interior environmental assessment work for the Oliver boilerhouse structure. The 27 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN HULL & ASSOCIATES, INC. BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (GROUNDWATER TESTING, OLIVER PLOW/PETERSON PRINTING PROPERTY) South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS E. Sample -Ewing Development Area (3) continued... assessment is necessary to determine the cost of any remediation activities that may need to be undertaken if the boilerhouse were to be adaptively reused by a commercial or industrial user. Grauvogel & Associates is currently under contract to conduct environmental assessment as needed during the demolition activities at Oliver, and the proposed work is a logical extension of those activities. The study will take approximately three weeks to complete. Staff recommends accepting the proposal from Grauvogel & Associates in the not-to- exceed amount of $5, 660. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved the request for professional services in the Sample -Ewing Development Area and authorized staff to retain Grauvogel & Associates based on the scope of services and fee proposed. (Asbestos survey of Oliver Boilerhouse) F. Airport Economic Development Area (1) Commission approval requested for Contract for Sale of Land for Private Development (Cooreman Real Estate Group Mr. Inks requested that item 6.F.1. be tabled. There were no objections and the Commission tabled item 6.F.1. 28 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN GRAUVOGEL & ASSOCIATES BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (ASBESTOS SURVEY OF OLIVER BOILERHOUSE) COMMISSION TABLED ITEM 61.1. South Bend Redevelopment Commission Co Regular Meeting— December 6, 2002 6. NEW BUSINESS F. Airport Economic Development Area (continued...) (2) Commission approval requested for proposal for irrigation improvements within the Blackthorn Golf Course. Mr. Rock reported that many irrigation improvements were completed in -house during 2002. To prevent employee injury, proposals were solicited to provide electrical wiring services for the automated systems installed. Two proposals were received as follows: Wissco Irrigation, Inc $3,600 H. S. Altman, Inc. $3,750 Staff recommends accepting the proposal from Wissco Irrigation in the amount of $3,600. Mr. Hunt asked when the wiring would be completed. Mr. Rock responded that it would be next week despite the cold weather. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for irrigation improvements in the Airport Economic Development Area and authorized staff to retain Wissco Irrigation, Inc. based on the scope of services and fee proposed. (Blackthorn Golf Course) C 29 COMMISSION APPROVED THE REQUEST FOR IRRIGATION IMPROVEMENTS IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN WISSCO IRRIGATION, INC. BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. (BLACKTHORN GOLF COURSE) 14 South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS (CONT.) G. South Bend Medical Services District H. West Washington - Chapin Development Area I. Other (1) Filing of Resolution No. 1928 ratifying and confirming Resolution No. 1914, designating the South Side Development Area, declaring the South Side Development Area to be blighted, approving a development plan and conditions under which relocation payments will be made, and establishing an allocation area for purposes of tax incremental financing and setting a public hearing for Friday, December 20, 2002 at 10:00 a.m. Mr. Inks advised that Resolution No. 1928 was on the agenda for filing purposes only and to set a public hearing for Friday, December 20, 2002 at 10:00 a.m. Ms. Greene explained to the Commission that when a new development area is declared, as with the South Side Development Area, the first step is a declaratory resolution by the Commission which states "this is the area designated to be the SSDA, and it is designated as blighted." The declaratory resolution also sets the allocation area and provides for relocation payments. That declaratory resolution then goes to the Area Plan Commission along with the development plan for the development area. The Area Plan Commission reviews the declaratory resolution, the development plan and 30 South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS I. Other (1) continued... supporting documentation and makes a determination as to whether it conforms with the comprehensive plan, and if it does, it passes a resolution which either approves the Commission's declaratory resolution or makes recommendations for amendments thereto. The Area Plan Commission resolution is then sent to the legislative body of the City, the South Bend Common Council, for its approval. After approval of the Commission's declaratory resolution by both the Area Plan Commission and the Common Council, the Commission must then pass a confirmatory resolution, such as the one presently before the Commission, as the final step in declaring the new development area. Ms. Greene advised that Resolution No. 1914 was approved by the Area Plan Commission in its Resolution No. 14202. Area Plan Commission Resolution No. 14202 is considered an order of the Area Plan Commission to go forward with the actions necessary to declare the area. Resolution No. 1914 and the Area Plan Commission order then went before the Common Council which passed its separate Resolution No. 313602, also approving and accepting the order of the Area Plan Commission. It is now the role of the Redevelopment Commission to adopt a confirming resolution. Resolution No. 1928 is the confirming resolution. Resolution No. 1928 states that the Commission 31 South Bend Redevelopment Commission Regular Meeting— December 6, 2002 6. NEW BUSINESS I. Other (1) continued... confirms what it said in Resolution No. 1914 and sets a public hearing on December 20, 2002 and to allow the public to comment on the proposed declaration of blight, designation of the development area and the development plan. Ms. Jones asked if Resolution No. 1914 came back to the Redevelopment Commission with any changes. Ms. Greene advised that there were no changes to Resolution No. 1914 and no changes to the development plan by the Area Plan Commission or the Common Council. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission accepted for filing Resolution No. 1928 and set a public hearing on Resolution No. 1928 for Friday, December 20, 2002 at 10:00 a.m. 7. PROGRESS REPORTS Mr. Rock advised that an extensive year end progress report will be given at the regular meeting scheduled for Friday, December 20, 2002. Mr. Laurent reported that approximately 85% of the above ground demolition has been completed at Oliver Plow Works. (W 32 COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 1928 AND SET A PUBLIC HEARING ON RESOLUTION NO. 1928 FOR FRIDAY, DECEMBER 20, 2002 AT 10:00 A.M. PROGRESS REPORTS South Bend Redevelopment Commission Regular Meeting— December 6, 2002 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for December 20, 2002 at 10:00 a.m. 9. ADJOURNMENT NEXT COMMISSION MEETING There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Kahn made a motion that the meeting be adjourned. Ms. Jones seconded the motion and the meeting was adjourned at 10:55 a.m. Robert W. Hunt, President 33 i! Donald E. Inks, Director