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HomeMy WebLinkAbout08-16-02 Redevelopment Commission Minutesi C 4 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 16, 2002 10:00 a.m. Presiding: Robert W. Hunt, President 1. ROLL CALL 227 West Jefferson Boulevard South Bend, Indiana Members Present: Mr. Robert W. Hunt, President Ms. Marcia Jones, Vice - President Ms. M. Catherine Roemer Mr. Philip J. Faccenda, Secretary (part of meeting) Mr. Matt Kahn (part of meeting) Legal Counsel: Ms. Cheryl Greene Redevelopment Staff: Mr. Donald Inks, Director Ms. Pamela Morris, Recording Secretary Mr. Owen Rock, Assistant Director Mr. Bob Case, Senior Economic Development Planner Mr. Bill Schalliol, Economic Development Planner Mr. Robert Mathia, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Others Present: Mr. Jon Hunt, CED, Executive Director Mr. Larry Magliozzi, CD, Director of Planning 2. APPROVAL OF MINUTES A. Commission approval of the Minutes of the Regular Meeting of July 19, 2002. Upon a motion by Ms. Jones, seconded by Ms. Roemer and unanimously carried, the Commission approved the Minutes of the Regular Meeting of July 19, 2002. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF JULY 19, 2002. 1 t :1 L South Bend Redevelopment Commission Regular Meeting— August 16, 2002 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted August 16, 2002 for approval. 212 CDBG COMMUNITY DEVELOPMENT Bill Schalliol East Race Printing & Graphics Petty Cash General Fund - Telephone The Armstrong Stamp Mfg. Co. Insty -Print 324 FUND City of South Bend - Department of Law The Abonmarche Group Wightman Petrie Environmental, Inc. Edges Lawncare Shamrock Network Design Abonmarche Consultants of Indiana, LLC Levy Ind. Slag J. F. New & Associates 414 SAMPLE -EWING Metropolitan Title- Indiana, LLC Plews Shadley Racher & Braun City of South Bend - Department of Law Meridian Title Corp Jonathan Baker 420 SBCDA City of South Bend - Department of Law Traffic Engineering Consultants, P.C. Grauvogel & Associates Urban Land Institute Lehman & Lehman, Inc. F 1,335.30 32.00 18.18 144.48 41.95 110.50 2,002.73 650.00 550.00 665.00 150.00 5,250.00 166.07 390.00 1,925.00 2.81 10,412.14 185.00 800.00 2,055.73 11,565.00 2,270.00 15,000.00 8,552.89 c, t South Bend Redevelopment Commission Regular Meeting— August 16, 2002 3. APPROVAL OF CLAIMS (CONT.) 424 TIF SBCDA- BUILDING OPERATIONS CB Richard Ellis 1,141.87 Hill's True Value Hardware 31.93 AEP 302.48 NIPSCO 6.07 619 BLACKTHORN Meadowbrook Golf Group, Inc. 7,000.00 $ 8,482.35 Upon a motion by Ms. Roemer, seconded by Ms. COMMISSION APPROVED THE CLAIMS SUBMITTED Jones and unanimously carried, the Commission AUGUST 16, 2002, AND ORDERED THE CHECKS approved the Claims submitted August 16, 2002, TO BE RELEASED. and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. (Commissioners Faccenda and Kahn are now present having entered the meeting at 10:05 a. m) 5. OLD BUSINESS A. Sample -Ewing Development Area (1) Commission approval requested for proposal for professional services in the Sample -Ewing Development Area. (Engineering services, Oliver Plow Works) Mr. Laurent reported that Item 5.A.1. was originally on the agenda for the meeting of July 19, 2002 as Item 6.D.4. The action taken at the July 19, 2002 meeting was that the Commission authorized staff to clarify two proposals received for THERE WERE NO COMMUNICATIONS. South Bend Redevelopment Commission Regular Meeting— August 16, 2002 5. OLD BUSINESS (CONT.) A. Sample -Ewing Development Area (1) continued... professional services in the Sample -Ewing Development Area and act on the lowest priced bid. Mr. Laurent advised the Commission that the proposals were not bid situations and the two quotes received had different scopes of work. It was explained that each firm'was left to create their own methodology to ultimately provide an adequate final product. The Arsee Engineers, Inc. proposal had a higher cost of $13,800 compared to Ken Herceg & Associates' $8,200, but also contained a greater amount of analytical work and deliverable product. Staff feels the Arsee proposal is of higher quality and recommends its approval despite the higher cost. Therefore, staff recommends approval of the Arsee Engineers, Inc. proposal dated June 25, 2002 in the amount of $13,800. Upon a motion by Ms. Jones, seconded by Ms. Roemer and unanimously carried, the Commission reversed its action of July 19, 2002 approving the lowest priced bid and approved the proposal from Arsee Engineers, Inc. for professional services in the Sample -Ewing Development Area. (Engineering Services, Oliver Plow Works) c, COMMISSION REVERSED ITS ACTION OF JULY 19, 2002 APPROVING THE LOWEST PRICED BID AND APPROVED THE PROPOSAL FROM ARSEE ENGINEERS, INC. FOR PROFESSIONAL SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA. (ENGINEERING SERVICES, OLIVER PLOW WORKS) v � South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS A. Tax Abatements There were no tax abatements. B. Housing (1) Commission approval requested for Satisfaction of Obligations and Release of Mortgage for property located at 511 N. Blaine Avenue. (Housing Development Corp.) Ms. Greene reported that the property located at 511 N. Blaine Avenue is scheduled for closing today, August 16, 2002 at Metropolitan Title Company. Staff was contacted by Metropolitan Title and informed that the Commission had previously released the mortgage on the IL property, however, the Satisfaction of Obligations was apparently not recorded. Ms. Greene advised that all obligations under the Real Estate Mortgage and Security Agreement related to the Rental Rehab loan for 511 N. Blaine Avenue have been waived or satisfied and the mortgage may be released and a transfer of ownership approved. 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 511 N. Blaine Avenue. (Housing Development Corp.) Ms. Roemer abstained from the vote. C THERE WERE NO TAX ABATEMENTS. COMMISSION APPROVED THE SATISFACTION OF OBLIGATIONS AND RELEASE OF MORTGAGE FOR PROPERTY LOCATED AT 511 N. BLAINE AVENUE. (HOUSING DEVELOPMENT CORP.) i South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) Holladay Corporation presentation on potential East Bank project. Mr. Inks introduced Mr. John Phair, President of Holladay Properties which is based in South Bend. Mr. Phair advised that over the years Holladay has completed approximately twenty -five projects in St. Joseph County as well as eight or nine in the downtown South Bend area. Mr. Phair reported that about one year ago Holladay acquired a site in downtown South Bend known as the Wharf site or the South Bend Woolen Mills site. Since that time Holladay has completed IL approximately a dozen proposed plans of what could be built on the site. Holladay has worked particularly close with redevelopment staff in regards to this project, and weekly meetings have been ongoing for almost a year. Planning originally began more grand than budgets ultimately allowed; however, this forced a look at all options available. Mr. Phair stated that the project as presented today is still a work in progress and is incomplete in some areas for that reason. Holladay wanted the Commission to view the project early and ensure everyone is on the same track. They are planning for a project that has never been done here before, or in any other Indiana city, including Indianapolis. The project is owner- occupied for -sale housing in a downtown mid -rise. The site is unique. The views are spectacular: the river L South Bend Redevelopment Commission Regular Meeting — August 16, 2002 A 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... frontage, waterfalls and the East Race. Holladay would provide security which consumers have indicated they want. In addition, the site is convenient and accessible. Mr. Phair asked and answered the question; will we have buyers? Holladay believes the answer is yes, but noted the need for Commission support. He then introduced Mr. Frank Perri, a Holladay Properties partner in charge of development in northern Indiana. Mr. Perri distributed a report derived from a study completed by the Urban Land Institute which shows that the condominium market is the hottest single segment of any market in the country. Mr. Perri displayed an elevation picture of "The Waters Edge" viewed from Colfax Street. The project is attractive, high profile and very "Chicago - style" relative to construction and architectural style. It includes several flats which would overlook Colfax and the river. One third of the units would be street side with two thirds being on the river. There will also be six townhomes on the river's edge. These townhomes will mask the parking facilities from the street side and from the river side. Elevators would be located in the center core. The first floor will have commercial space available for a high end restaurant, an upscale deli type grocery, or cafe, florist, dry cleaners, etc. Mr. Perri commented that their plans not only L PRESENTATION BY HOLLADAY CORPORATION ON DEVELOPMENT OF THE FORMER WHARF RESTAURANT SITE. South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... address the needs of the project, but also the needs of the community and neighborhood. There are a total of forty -three flats in the mid -rise and six townhomes. The square footage of the entire project encompasses approximately 180,000 sq ft. with the portion which is strictly condominiums being 104,000 sq ft. The smallest unit is about 1,600 sq ft with a range up to 2,300 sq ft. The units are considered quite large by Chicago standards. The commercial space is approximately 62,000 sq ft including a small lobby and the parking ramps. Mr. Perri explained the concept plan of the Waters Edge project as follows: Project Scope: A four to six story, masonry clad building containing a minimum of thirty and up to a maximum of forty-nine condominiums, as well as a 100 space parking garage and 10,800 sq ft of commercial space. Site Size: Approximately 1.5 acres. Site Shape: Irregular, almost triangular. Soils Issues: Demolition of building, raceway, etc. Building Size Minimum: Including condos, parking garage and commercial space is 108,000 sq ft. Building Size Maximum: Including condos, parking garage and commercial space is 179,200 sq. ft. South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... Total Project Costs: Minimum $12,000,000; maximum $18,500,000. Selling Price: $195,000 to $448,500 Condo Size: 1,588 sq ft to 2,300 sq ft. Developer: Holladay Properties - Owner/Developer/Manager of ten projects in the downtown South Bend area since 1980. One of the largest in -fill, urban, developer of condominiums and multi- family housing in Washington, D. C. Constructed over 25,000 housing units since 1952. Risk Profile: The Waters' Edge project is the first urban condominium to be developed in downtown South Bend. If successful, it should spur additional residential development in all price ranges. The market niche this project hopes to fill has no proven track record in downtown South Bend. Mr. Hunt inquired if the photos shown the Commission depicted the minimum or maximum project. Mr. Perri responded that the elevation photos shown are of the projected forty- nine unit, six story structure. When the project moves to the next level the Commission will be shown other views, renderings and perspectives. Mr. Kahn asked how the project will affect Stevenson Mill to the east. L 9 South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... Mr. Perri answered that the impact would be minimal as they tried to be careful. There will be approximately 100 feet facing the building, the side angles are not bad and residents of Stephenson Mill can still see the dam. Mr. Phair commented further on the commercial requirements. Holladay does expect to have a grocery store with an entry on Colfax which will be provided free of charge to the tenants. The store will be three to four thousand sq ft. It will be a high quality deli, small grocery and bakery which will serve the residents of the building as well as the residents of the surrounding area. Mr. Phair reminded the Commission that their presentation is not a formal request as yet. Holladay requires the support of the Commission to create a sub -TIF district to allow for the construction of parking decks and commercial spaces to be repaid from the Waters' Edge real estate taxes which result from this project. It was noted that Mr. Jon Hunt presented Holladay with a memo which was prepared by Baker & Daniels addressing this issue. According to the memo, it would be possible to capture the taxes from the site repay a bond used to construct parking deck and commercial spaces. The amount of financing need is estimated at $3 million. Holladay estimates that the taxes related to 10 14 South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... the building that Holladay would be adequate in today's interest rate environment to pay 100 percent. In addition, Holladay is seeking Commission support to slow traffic on Colfax Street with improvements as well as on- street parking. The traffic calming improvements could be constructed in phases. They would create a look on Colfax Street, from St. Joseph Street to Niles Avenue, similar to what Niles Avenue is today. There is also a plan to clean up Sycamore ILI Street. In order for the Waters Edge Project to be successful, Holladay must be able to represent the improvements planned for the surrounding area. There are properties located on Sycamore Street which have been added to the SBCDA acquisition list, but the redevelopment process must be completed. There are other potential development sites for high - end residential development in the East Bank if the Waters Edge proves successful; but to ensure success, Holladay feels Commission must renew its commitment to the East Bank, particularly for other residential and retail projects. Mr. Kahn asked if a market analysis has been completed. Mr. Perri responded that they've looked at numerous condominiums in the market place, taking into consideration different 11 South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... income levels. He commented that it was very difficult to do a valid market analysis because there are no comparables to look at. He added the condominiums are considered pricey by South Bend standards. The pricing includes a quality finish package and two parking spaces, the importance of which is difficult to gage in downtown South Bend. Presently, Holladay's plan is to clear up the site, move a sales office on -site and pre -sell fifty percent of the units. They have given themselves a six month ILwindow of time to accomplish this. Ms. Roemer inquired about the time frame to complete the project, assuming no major roadblocks. Mr. Phair advised that it will take two to three months to finalize the plan and formally present it to the Commission. By the first of January they anticipate full project action, ground breaking approximately mid June, and project completion nine to twelve months later. Mr. Hunt requested that staff keep the Commission informed on incoming proposals and inquired about the status of the acquisition of the Sycamore Street properties. 12 14 South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... Mr. Mathia reported that a resolution setting the offering price will be presented at the next Commission meeting. Mr. Hunt thanked Holladay Properties for their presentation and acknowledged the Commission's willingness to work with Holladay to further their project. (2) Filing of Resolution No. 1901 amending the South Bend Central Development Area Development Plan and setting a Public Hearing for September 6, 2002 at 10:00 a.m. IL Mr. Mathia advised that Resolution No. 1901 will add several properties the the SBCDA acquisition list: 401 Monroe Street which is the Key Bank Drive -In property and three parcels located at Hill and Colfax Streets. These properties are required for the continued implementation of the South Bend Central Development Plan, both on the East Bank and in the River Glen Plaza. The Commission accepted for filing Resolution No. 1901 and set a public hearing on Resolution No. 1901 for 10:00 a.m., September 6, 2002. (3) Commission approval requested for Resolution No. 1902 approving the fair re -use value of property in the South Bend Central Development Area. (Crescent Street Properties) 13 THE COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 1901 AND SET A PUBLIC HEARING ON RESOLUTION NO. 1901 FOR 10:00 A.M., SEPTEMBER 6, 2002. :9 South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (3) continued... Mr. Inks requested that Item 6.C.3. be tabled. There were no objections and the Commission tabled Item 6.C.3. (4) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Title work, 401 E. Monroe Street, Key Bank property) Mr. Williams reported that two quotes were received for the preparation of a title search on 401 E. Monroe Street. The proposals are as follows: IL- Meridian Title Corporation $100 Metropolitan Title $180 Staff recommends accepting the proposal from Meridian Title Corporation in the amount of $100. Upon a motion by Mr. Faccenda, seconded by Ms. Roemer and unanimously carried, the Commission approved the proposal from Meridian Title Corporation for professional services in the South Bend Central Development Area. (Title work, 401 E. Monroe Street, Key Bank property) (5) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Appraisal services, 401 E. Monroe Street, Key Bank property) L� 14 Commission tabled Item 6.C.3. COMMISSION APPROVED THE PROPOSAL FROM MERIDIAN TITLE CORPORATION FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (TITLE WORK, 401 E. MONROE STREET, KEY BANK PROPERTY) South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (5) continued... Mr. Williams reported that two quotes were received for appraisal services on property located at 401 E. Monroe Street. The proposals are as follows: Jerome E. Michaels, MAI $3,900 R. E. Pitts & Associates, Inc. $3,300 Two proposals are required for appraisal services and staff recommends accepting the proposals from both Jerome E. Michaels and R. E. Pitts & Associates. Upon a motion by Mr. Faccenda, seconded by Ms. Roemer and unanimously carried, the Commission approved the proposals from Jerome E. Michaels and R. E. Pitts & Associates for professional services in the South Bend Central Development Area. (Appraisal work, 401 E. Monroe Street, Key Bank property) (6) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Survey work, 401 E. Monroe Street, Key Bank property) Mr. Williams reported that three quotes were received for surveying services at 401 E. Monroe Street. The proposals are as follows: Danch, Hamer & Associates $1,575 Lang, Feeney & Associates $ 832 Wightman Petrie, Inc. $1,500 15 COMMISSION APPROVED THE PROPOSALS FROM JEROME E. MICHAELS AND R. E. PITTS & ASSOCIATES FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (APPRAISAL WORK, 401 E. MONROE STREET, KEY BANK PROPERTY) South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (6) continued... Staff recommends accepting the proposal from Lang, Feeney & Associates in the amount of $832. Upon a motion by Mr. Faccenda, seconded by Ms. Roemer and unanimously carried, the Commission approved the proposal from Lang, Feeney & Associates for professional services in the South Bend Central Development Area. (Survey work, 401 E. Monroe Street, Key Bank property) (7) Commission approval requested for proposal for professional services in the IL South Bend Central Development Area. (Phase I environmental services, 401 E. Monroe Street, Key Bank property) Mr. Williams reported that three quotes were received for environmental services on 401 E. Monroe Street. The proposals are as follows: Envirocorp $1,500 Grauvogel & Associates $1,920 Wightman Petrie Environmental $1,200 Staff recommends accepting the proposal from Wightman Petrie Environmental in the amount of $1,200. 16 A COMMISSION APPROVED THE PROPOSAL FROM LANG, FEENEY & ASSOCIATES FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (SURVEY WORK, 401 E. MONROE STREET, KEY BANK PROPERTY) A South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (7) continued... Upon a motion by Mr. Faccenda, seconded by Ms. Roemer and unanimously carried, the Commission approved the proposal from Wightman Petrie Environmental for professional services in the South Bend Central Development Area. (Phase I environmental services, 401 E. Monroe Street, Key Bank property) (8) Commission authorization requested to use the Leighton Plaza Courtyard in the South Bend Central Development Area to display an H2 (Theme) Hummer. (Memorial Health & Lifestyles Center) ILMr. Williams reported that Memorial Health & Lifestyles has requested the use of Leighton Plaza Courtyard both in August and September to display a theme hummer during two separate functions sponsored by Health Works. Staff has requested a certificate of insurance and indemnification agreement which will be provided prior to display of the vehicle. Upon a motion by Mr. Kahn, seconded by Ms. Roemer and unanimously carried, the Commission authorized the use of Leighton Plaza Courtyard in the South Bend Central Development Area to display an H2 Theme Hummer subject to proof of insurance and an indemnification agreement. (Memorial Health & Lifestyles Center.) 17 COMMISSION APPROVED THE PROPOSAL FROM WIGHTMAN PETRIE ENVIRONMENTAL FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (PHASE I ENVIRONMENTAL SERVICES, 401 E. MONROE STREET, KEY BANK PROPERTY) COMMISSION AUTHORIZED THE USE OF LEIGHTON PLAZA COURTYARD IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA TO DISPLAY AN H2 THEME HUMMER SUBJECT TO PROOF OF INSURANCE AND AN INDEMNIFICATION AGREEMENT. (MEMORIAL HEALTH & LIFESTYLES CENTER.) South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (9) Commission approval requested for Bid Specifications for property in the South Bend Central Development Area. Mr. Inks requested that Item 6.C.9. be tabled. There were no objections and the Commission tabled Item 6.C.9. (10) Commission approval requested to publish the Notice for Disposition of Land with publication dates of August 16, 2002 and August 23, 2002 and Receipt of Bids at 10:00 a.m. on September 20, 2002. Mr. Inks requested that Item 6.C.10. be IL tabled. There were no objections and the Commission tabled Item 6.C.10. D. Sample -Ewing Development Area (1) Commission approval requested for Letter of Agreement from Crowe, Chizek and Company, LLP to perform financial advisory services for the TJX project. Mr. Inks advised that the Letter of Agreement would engage Crowe Chizek and Company as financial consultant for the bond issue relating to the TJX Project. The City Controller has approved Crowe Chizek as an acceptable financial consultant for the bond issue, the City Attorney has reviewed the proposed agreement and finds it acceptable and staff recommends approval of the Letter of Agreement. 18 COMMISSION TABLED ITEM 6.C.9. COMMISSION TABLED ITEM 6.0.10. :4 South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (1) continued... Upon a motion by Mr. Kahn, seconded by Ms. Roemer and unanimously carried, the Commission approved the Letter of Agreement from Crowe, Chizek and Company, LLP to perform financial advisory services for the TJX project. (2) Commission approval requested for Engagement Proposal from Baker & Daniels to serve as Bond Counsel and for Services Relating to the Proposed Economic Development Project. (TJX Project) Mr. Inks advised that the Engagement Proposal would retain Baker & Daniels to serve as bond counsel relating to the TJX Project. The City Controller has approved Baker & Daniels as acceptable bond counsel; however, the proposal has not been reviewed by the City Attorney in final form. Staff recommends approval of the Engagement Proposal from Baker & Daniels subject to final legal review. COMMISSION APPROVED A LETTER OF AGREEMENT FROM CROWE, CHIZEK AND COMPANY, LLP TO PERFORM FINANCIAL ADVISORY SERVICES FOR THE TJX PROJECT. Upon a motion by Mr. Faccenda, seconded COMMISSION APPROVED THE ENGAGEMENT by Ms. Jones and unanimously carried, the PROPOSAL FROM BAKER & DANIELS TO SERVE Commission approved the Engagement AS BOND COUNSEL AND FOR SERVICES RELATING TO THE TJX PROJECT, SUBJECT TO Proposal from Baker & Daniels to serve as FINAL LEGAL REVIEW BY THE CITY ATTORNEY. Bond Counsel and for Services Relating to the TJX Project, subject to final legal review by the City Attorney. (3) Commission approval requested for Resolution No. 1904 authorizing the issuance of bonds of the South Bend 19 11 South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (3) continued... Redevelopment District for the purpose of raising money for redevelopment and economic development in the Sample - Ewing Development Area. (TJX Project) Randy Rompola of Baker & Daniels gave the Commission a summary of Resolution No. 1904. Mr. Rompola noted that at the meeting of July 19, 2002, the Commission adopted Resolution No. 1898 indicating a preliminary intent to issue bonds. Resolution No. 1904 is the final bond resolution and sets forth the terms in IL which the bonds will be sold and delivered to the bond buyer. The maximum principal amount of the bonds is set at $9,000,000 and the maximum term is set at twenty (20) years. Each of these are subject to fluctuation downward, but the parameters could not be exceeded. The maximum interest is set at seven (7) percent, but will be significantly lower in the current market situation. Resolution No. 1904 provides for the bonds to be repayed with TIF revenues that the project itself will generate, along with some additional revenue sources that may be necessary in the early years due to the tax abatement that has been granted to TJX. In the event that those revenues are not sufficient, the resolution promises the use of a tax levy; however, it is not expected that the tax levy will be needed. Approval of the bond by the Local Government L20 South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (3) continued... Finance Control Board is needed because of the tax levy backup. This financing technique has been used by the City in the past to obtain a lower interest rate. Crowe Chizek is able to show sufficient revenue coverage demonstrating that the tax levy would not be needed and the investment is relatively safe. Selling the bonds without the tax backup would increase the interest rate significantly, as well as increasing the overall cost of financing. Resolution No. 1904 provides that the bonds may be sold either at public or negotiated sale. A negotiated sale is preferred. There will be IL a subsequent issuers' certificate that will be executed by the Commission which will provide for the manner in which the bonds will ultimately be sold. In terms of timing, Mr. Rompola advised that this matter will go before the Control Board on Thursday, August 22, 2002 and approval is expected within a few weeks. After the approval, the bond sale phase would begin. It is expected that the bonds will be sold by the middle to end of September, with closing the first part of October. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 1904 authorizing the issuance of bonds of the South Bend Redevelopment District for the purpose of raising money for redevelopment and economic development in the Sample -Ewing Development Area. (TJX Project) 21 COMMISSION APPROVED RESOLUTION NO. 1904 AUTHORIZING THE ISSUANCE OF BONDS OF THE SOUTH BEND REDEVELOPMENT DISTRICT FOR THE PURPOSE OF RAISING MONEY FOR REDEVELOPMENT AND ECONOMIC DEVELOPMENT IN THE SAMPLE -EWING DEVELOPMENT AREA. (TJX PROJECT) A South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (4) Public Hearing regarding additional appropriation in the Sample -Ewing Development Area. (bond proceeds from the South Bend Redevelopment District Special Taxing District Bonds of 2002) Mr. Inks requested that the following items 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 July 19, 2002. Mr. Hunt opened the Public Hearing regarding additional appropriation in the IL Sample -Ewing Development Area and asked if there was anyone who wished to speak. There being no one who wished to speak regarding the issue, Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. (5) Commission approval requested for Resolution No. 1905 appropriating the proceeds (including investment earnings thereon) of the South Bend Redevelopment District Bonds to be applied to the cost of property acquisition, redevelopment and economic development in or serving the Sample -Ewing Development Area. (TJX Project) 22 A 14 f South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (5) continued... Upon a motion by Ms. Jones, seconded by Ms. Roemer and unanimously carried, the Commission approved Resolution No. 1905 appropriating the proceeds (including investment earnings thereon) of the South Bend Redevelopment District Bonds to be applied to the cost of property acquisition, redevelopment and economic development in or serving the Sample - Ewing Development Area. (TJX Project) (6) Commission approval requested for Resolution No. 1906 authorizing publication of a public hearing to provide for the designation of a taxpayer pursuant to I.C. 36 -7 -14 -39.3 Mr. Rompola explained that part of the TIF revenues that will be generated from this project will be from personal property. Normally you cannot collect TIF revenues from personal property, but there was an amendment to this state statute allows that in circumstances where the project involves a manufacturing company or an industrial or commercial company if we show that we need those revenues to pay for debt service on bonds that will be related to that project. Our scenario fits that exactly: we will use the TJX real and personal property TIF revenues to pay for the debt service on the bonds that are for this project. To do that we need to hold a public hearing and amend the original 23 COMMISSION APPROVED RESOLUTION NO. 1905 APPROPRIATING THE PROCEEDS (INCLUDING INVESTMENT EARNINGS THEREON) OF THE SOUTH BEND REDEVELOPMENT DISTRICT BONDS TO BE APPLIED TO THE COST OF PROPERTY ACQUISITION, REDEVELOPMENT AND ECONOMIC DEVELOPMENT IN OR SERVING THE SAMPLE -EWING DEVELOPMENT AREA. (TJX PROJECT) South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (6) continued... declaratory resolution for the Sample - Ewing Development Area. Resolution No. 1906 sets the public hearing for September 6, 2002 at 10:00 a.m. Upon a motion Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1906 authorizing publication of a public hearing to provide for the designation of a taxpayer pursuant to I.C. 36 -7 -14 -39.3. (7) Commission approval requested for Resolution No. 1907 related to acquisition of property in the Sample - Ewing Development Area by eminent domain. Mr. Laurent noted that Resolution No. 1907 sets a purchase price of $2,500 for a property located on Franklin Street. The price is the equivalent of just over $31,000 per acre. The property is .0795 acres. The resolution also authorizes the sending of a purchase offer and the use of eminent domain if agreement to sell cannot be reached in 30 days. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 1907 related to acquisition of property in the Sample -Ewing Development Area by eminent domain. 24 COMMISSION APPROVED RESOLUTION No. 1906 AUTHORIZING PUBLICATION OF A PUBLIC HEARING TO PROVIDE FOR THE DESIGNATION OF A TAXPAYER PURSUANT TO I.C. 36 -7 -14 -39.3. COMMISSION APPROVED RESOLUTION No. 1907 RELATED TO ACQUISITION OF PROPERTY IN THE SAMPLE -EWING DEVELOPMENT AREA BY EMINENT DOMAIN. r� f South Bend Redevelopment Commission Regular Meeting— August 16, 2002 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (8) Commission approval requested for proposal for professional services in the Sample -Ewing Development Area. (Architectural renderings /site plan concepts, Oliver Plow Works) Mr. Laurent noted that Lehman and Lehman has submitted a proposal to create renderings of the boiler house and smokestacks at Oliver Plow Works to be used in marketing the Oliver Industrial Park land, as well as for use in the discussions with the group that is interested in creating a museum on that property. The renderings will show perspective and aerial views, as well as a IL design of the entry and gateway signage. The staff recommends approval of the proposal in the not -to- exceed amount of $6,000. Upon a motion by Mr. Kahn, seconded by COMMISSION ACCEPTED THE PROPOSAL FROM Ms. Jones and unanimously carried, the LEHMAN AND LEHMAN IN THE AMOUNT OF Commission accepted the proposal from $6,000 FOR PROFESSIONAL SERVICES IN THE Lehman and Lehman in the amount of SAMPLE -EWING DEVELOPMENT AREA. (ARCHITECTURAL RENDERINGS /SITE PLAN $6,000 for professional services in the CONCEPTS, OLIVER PLOW WORKS) Sample -Ewing Development Area. (Architectural renderings /site plan concepts, Oliver Plow Works) 7. PROGRESS REPORTS Mr. Rock reported that Phase I of the demolition of Oliver Plow Works will be completed this week. Phase II will begin in late September. 25 A LM A MC South Bend Redevelopment Commission Regular Meeting— August 16, 2002 7. PROGRESS REPORTS (CONT.) We've received a $100,000 grant from the EPA for underground tank clean -up within the City of South Bend. Related to downtown South Bend, we have a draft document ready to implement late night patrols in the parking garages. Also, Downtown South Bend, Inc. hired a firm to do general maintenance and clean-up in the downtown area. In the Airport area, we've demolished another house on Olive Road. We own one more and are endeavoring to purchase the other two. We had the first public meeting for the rerouting of Bendix to accommodate the Bosch project. We have also begun the rerouting of utilities for the Tech Data project. The Steve Cooreman housing project went through primary plat approval and we are now working to annex and expand the Airport Economic Development Area TIF district for that project. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for September 6, 2002 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. Kahn seconded the motion and the meeting was adjourned at 11:00 a.m. Robert W. Hunt, President 26 NEXT COMMISSION MEETING ADJOURNMENT .Zr"4_& cz� �ZL D nald E. Inks, Director