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HomeMy WebLinkAbout08-08-02 Redevelopment Commission MinutesI A SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING August 8, 2002 8:15 a.m. Presiding: Robert W. Hunt, President 1. ROLL CALL Members Present: 227 West Jefferson Boulevard South Bend, Indiana Mr. Robert W. Hunt, President Ms. Marcia Jones, Vice - President Mr. Philip J. Faccenda, Secretary Mr. Matt Kahn Ms. M. Catherine Roemer Redevelopment Staff: Mr. Donald Inks, Director Ms. Pamela Morris, Recording Secretary Mr. Owen Rock, Assistant Director Mr. Bob Case, Senior Econ Development Planner Mr. Marco Mariani, Senior Comm Development Planner Others Present: 2. APPROVAL OF MINUTES There were no minutes for approval. 3. APPROVAL OF CLAIMS There were no claims for approval. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Tax Abatements There were no tax abatements. Mr. Jon Hunt, CED, Executive Director 1 THERE WERE NO MINUTES FOR APPROVAL. THERE WERE NO CLAIMS FOR APPROVAL. THERE WERE NO COMMUNICATIONS. THERE WAS NO OLD BUSINESS. THERE WERE NO TAX ABATEMENTS. South Bend Redevelopment Commission IL Special Meeting— August 8, 2002 6. NEW BUSINESS (CONT.) B. Housing There was no housing business. C. South Bend Central Development Area There was no business in the South Bend Central Development Area. D. Sample -Ewing Development Area THERE WAS NO HOUSING BUSINESS. THERE WAS NO BUSINESS IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (1) Commission approval requested for proposal for rehabilitation services in the Sample -Ewing Development Area. (Wenger Homestead -Local & National Historic Landmark Property, 701 Pennsylvania Avenue) Mr. Mariani reported that he was pleased to present this project to the Commission. In the past eighteen months, more than a dozen prospective buyers have gone through the Wenger Homestead with only one serious offer to purchase the property. Mr. Mariani noted that offer did not meet the conditions placed by the City as far as inspections, single family home ownership, etc. Mr. Mariani advised that he has received several calls, as well as some personal visits, from homeowners living adjacent to the property. They are extremely concerned about individuals breaking into the house and/or vandalizing the property. The house has become a real liability for the neighborhood. The City is in the process of building twelve new homes north of this property. The Mayor and Council have allocated $1.4 million for a new park that will start construction this fall, possibly November. 2 THERE WAS NO HOUSING BUSINESS. THERE WAS NO BUSINESS IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. South Bend Redevelopment Commission Special Meeting — August 8, 2002 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (1) continued... Mr. Mariani stated that it is necessary that staff move quickly to stabilize and secure this house, avoid further deterioration, turn it into an asset and then work to get it sold. Staff have put together a bid specifications package to clean out the interior of the house and stabilize the exterior of the house and the site including a listing of improvements such as adding a front porch, installing gutters, down spouts and new windows. Bid specifications were sent to eleven (11) contractors within the community. Four (4) or five (5) contractors actually went through the house and inspected it. There were only two contractors who submitted bids. The bids are as follows: Tri-M Construction, Inc. $ 80,350 Warner Construction, Inc. $245,900 Staff requests that the low bid of $80,350 be awarded to Tri-M Construction, Inc. Funds will be paid out of the Sample -Ewing TIF and that a contract for professional services be executed immediately. It is anticipated that the work will be completed by November 29, 2002. Ms. Roemer inquired if staff had previous knowledge of Tri-M Construction. Mr. Mariani responded that Tri-M Construction has done a lot of work with the City through the Affordable Loan Program, the Repair Grant Program and the Housing z South Bend Redevelopment Commission Special Meeting— August 8, 2002 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (1) continued... Repair and Improvement Program, and that the City's inspectors are very comfortable with Tri-M's work. Ms. Roemer questioned the price difference between the two proposals received and the fact that Tri-M was able to begin construction immediately in the middle of the prime construction season. Mr. Mariani explained that Tri-M Construction has their own wood working shop and can manufacturer special pieces in- house thus saving time and money. Mr. Robert Hunt asked for clarification of the source for funds involved and an estimate of the selling price after rehabilitation. Mr. Mariani responded that the funds would come from the Sample -Ewing Development Area TIF. A realtor such as F M Stone will appraise the property upon completion, give an estimated price range for selling and try to market the property at that time. Mr. Mariani noted that the structure is worth saving and that there is a reasonable expectation of getting some of the funds back. It was noted by Mr. Robert Hunt that this house is on the National Historic Landmark list. 4 South Bend Redevelopment Commission Special Meeting— August 8, 2002 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (1) continued... Mr. Mariani agreed and acknowledged that the house cannot be demolished. It could, however, be moved which would not solve the problem of deterioration. Ms. Jones asked if Tri-M Construction had previous experience in the rehabilitation of historic homes. Mr. Mariani replied that they do have prior experience. Recent and past photos of the house and site were circulated for viewing. Upon a motion by Ms. Jones, seconded by Ms. Roemer and unanimously carried, the Commission approved the proposal for rehabilitation services in the Sample -Ewing Development Area. (Wenger Homestead - Local & National Historic Landmark Property, 701 Pennsylvania Avenue) E. Airport Economic Development Area (1) Staff report on disposition of property in the Airport Economic Development Area. Mr. Rock reported on a bid submitted by developer Steve Cooreman for the purchase and development of property owned by the Commission and commonly known as the "Dale Park 19 Acres" in the Airport Economic Development Area. The property consists of approximately 19 acres and the 5 COMMISSION APPROVED THE PROPOSAL FOR REHABILITATION SERVICES IN THE SAMPLE - EWING DEVELOPMENT AREA. (WENGER HOMESTEAD -LOCAL & NATIONAL HISTORIC LANDMARK PROPERTY, 701 PENNSYLVANIA AVENUE) South Bend Redevelopment Commission IL Special Meeting — August 8, 2002 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (1) continued... proposed purchase price is $62,700 or $3,300 per acre. The required faithful performance guarantee of 10% of the purchase price ($6,270) has been submitted by the Developer. The Developer proposes to build approximately 105 villas ranging in price from $170,000 to $250,000 when the 19 acre site is assembled with the adjacent 40 acre site that is currently owned by Mr. Cooreman. The Developer is also proposing to develop an additional 101 residential homes ranging in price from $150,000 to $300,000 on a site located to the northwest and situated outside of the city limits. Mr. Rock noted that the Developer proposes to start construction as soon as possible in anticipation of entering the development project in the Panorama of Homes for marketing. Staff recommends selling the Dale Park 19 Acres to Mr. Cooreman because this type of residential housing in this price range is currently not available in South Bend and such a project would be of public benefit and utility to the City and its citizens. It is anticipated that the proposed project will help to attract new businesses by making this type of housing available and overall facilitate an increase in temporary and permanent employment opportunities. In addition to requesting approval by the Commission to sell the Dale Park 19 Acres to Mr. Cooreman, staff is also requesting 6 South Bend Redevelopment Commission ,; Special Meeting— August 8, 2002 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (1) continued... Commission approval on a Memorandum of Understanding (MOU) related to the overall development projects. Finally, assuming that the Commission approves both the land sale and the MOU, and ultimately a Development Agreement based on the MOU, then staff would recommend and request Commission approval to permit the proposed Developer to have site access prior to closing. The Commission chose to hear the balance of the presentation for the Villas at Lake Blackthorn and Westwood Knolls at ILBlackthorn projects before taking any action on item 6.E.1. (2) Commission approval requested for Memorandum Of Understanding between the City of South Bend, Indiana and the Cooreman Real Estate Group, Inc. for the Villas at Lake Blackthorn and Westwood Knolls at Blackthorn projects. (3) Commission authorization requested for site access by Cooreman Real Estate Group, Inc. (Key No. 25- 1010 -0177, commonly referred to as the Dale Park parcel) Mr. Inks advised the Commission that Resolution No. 1903 approving the execution of a Development Agreement and other related documents associated with the Villas at Lake Blackthorn and Westwood C CON MISSION CHOSE TO HEAR THE BALANCE OF THE PRESENTATION FOR THE VILLAS AT LAKE BLACKTHORN AND WESTWOOD KNOLLS AT BLACKTHORN PROJECTS BEFORE TAKING ANY ACTION ON ITEM 6.E.1. South Bend Redevelopment Commission Special Meeting— August 8, 2002 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (2) and (3) continued... Knolls at Blackthorn projects will be substituted for items 6.E.2 and 6.E.3. and that Resolution No. 1903 encompasses both items. Mr. Inks requested that the approval of Resolution No. 1903 be added to the agenda. (4) Commission approval requested for Resolution No. 1903 approving the execution of a Development Agreement and other related documents associated with the Villas at Lake Blackthorn and Westwood Knolls at Blackthorn projects. Mr. Jon Hunt presented the following information to the Commission on behalf of staff, city attorney and developer: Mr. Hunt began first by thanking the Commission for attending the Special Meeting which was called specifically to address various timing issues related to the projects. One of those issues include a chance to have the first Panorama of Homes site in the City of South Bend which would also significantly assist in marketing/selling this overall project, thereby ensuring project success. There is a deadline on the presentation to the Home Builders Association and it is essential that the Developer show progress in assembling the site and evidence of the private - public partnership in order to be considered for the Panorama. City staff may accompany Mr. 8 South Bend Redevelopment Commission Special Meeting— August 8, 2002 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (4) continued... Cooreman to his presentation to the Home Builders Association. Even absent the Panorama of Homes, there is major work to be done by both the City and the Developer, in terms of the site, so that builders can begin construction in October or November. The Mayor authorized Assistant City Attorney Cheryl Greene and Mr. Jon Hunt to complete the negotiations with Mr. Cooreman. Several minor negotiation points are currently being finalized. Mr. Hunt previously provided the Commission with a Memorandum of Understanding (MOU) between the City of South Bend, Indiana and ILthe Cooreman Real Estate Group, Inc. for the Villas at Lake Blackthorn and Westwood Knolls at Blackthorn Projects. It was noted that there will be non - significant revisions made to the document. Mr. Hunt continued by advising Resolution No. 1903 recognizes the Memorandum of Understanding between the City and the developer. In terms of Redevelopment Commission action and authority, Resolution No. 1903 will do several things. It approves and endorses the project described in the MOU. It directs and authorizes staff and legal counsel to negotiate and complete a legally binding Development Agreement. It also authorizes completion of a Contract for Sale of Land for Private Development and a Quit Claim Deed. All of the previously mentioned documents will be scheduled for approval by 9 South Bend Redevelopment Commission IL Special Meeting— August 8, 2002 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (4) continued... the Commission at its regular meeting scheduled for August 16, 2002. Resolution No. 1903 further authorizes the President of the Commission to execute and the Vice President or Secretary to attest the various documents suggested and completed by legal counsel. In addition, upon receipt of appropriate indemnification from Mr. Cooreman, Resolution No. 1903 will allow the developer to access the site prior to closing on the real estate transaction. Mr. Hunt noted that this was not an unusual action and was very recently done on the TJX Project. { In February 2001, the staff gave a report to the Commission recommending the sale of the Dale Park 19 Acres involved to the L Cooreman Real Estate Group. At that time, for a variety of reasons, the project was not able to proceed. Referencing the attached map, Mr. John Hunt noted that Section "A ", known as the Dale Park 19 Acres, is already located within the City and Mr. Cooreman has started the annexation process (which is before the City Council now) to immediately annex the forty (40) acre site labeled Section `B" into the City as well. There would then be approximately sixty (60) acres to be located in the City. The Westwood Villas at Blackthorn Project would consist of 105 villas ranging in price from $170,000 to $250,000 each, around a 10 South Bend Redevelopment.Commission Special Meeting— August 8, 2002 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (4) continued... 10 acre lake. At the same time, Mr. Cooremen will begin to develop 100+ single family homes in Section "C" ranging in price from $150,000 to $300,000 on City water and sewer. Section C will remain outside the city limits. The annexation process for Section "C" would not begin until the subdivision in Section C is substantially complete. Mr. Hunt continued to explain that the MOU requires the City to bring main line sewer west to Orange Road. The Developer will then be responsible for main line sewer up Orange Road to the area that will be annexed in the future (Section "C "). The Developer will also be responsible for all internal site improvements including water and sewer, road work, excavation, street lights, etc. for both Projects. The residents buying homes in Section "C" will be on City water and sewer and will be required to enter into a compact that will necessitate those homeowners to pay a differential property tax rate, (not the County rate), but a higher tax rate. It would be a 50% differential between the City's tax rate and the County tax rate. This would generate additional monies for the City. These amounts will probably be invoiced on water bills. In addition, because these homes are initially outside the City, there will be a surcharge on the utility services. At some point in time, perhaps five (5) years, the City will move on annexation assuming the Project is 11 South Bend Redevelopment Commission Special Meeting— August 8, 2002 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (4) continued... substantially complete. The Developer has asked that Sections "A" and `B" receive tax abatement when it is annexed. Developer has been advised during negotiations of the MOU that neither the Commission, nor the City administration has control over the tax abatement process. The City administration can only endorse and support the petition to the Commission, and to the City Council, but there can be no assurances that Developer's petitions for tax abatement would be granted. An additional issue under the MOU for the ILI Developer is the property that borders west of Section "C ". Section "C" on Westwood Knolls will be entirely residential and the Developer would like the City to only support residential development in that quadrant where it touches the Westwood Knolls development and not commercial development of any kind. Mr. Jon Hunt indicated that this was a reasonable request. Ms. Roemer asked what was meant by "reasonable support". Mr. Jon Hunt responded that the City would not verbally support industrial or commercial development in that quadrant. Mr. Robert Hunt commented that the market will determine eventually what the ultimate development in that area will be. He noted the Commission could not guarantee future 12 South Bend Redevelopment Commission ILI Special Meeting— August 8, 2002 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (4) continued... development plans and cannot commit future Commissions. Ms. Roemer commented that the property contemplated in the Development agreement is presently not in the City and that any future development plans can clearly be supported verbally, and, at the same time, the City administration can not go out of its way to block a project nor take action concerning property over which the City has no control. Mr. Jon Hunt advised that Mr. Rock and Mr. ILI Case are currently working on updating the Airport Economic Development Area Plan. It is anticipated that staff will later recommend to the Commission that the Airport Economic Development Plan be amended to reflect uses consistent with the residential character of this area. Ms. Roemer asked for clarification regarding the requirements for annexation of (Section "C ") in the future. Mr. Jon Hunt explained that pursuant to the MOU, as well as the legally binding Development Agreement to be approved at the next meeting, the City will institute annexation on the site within a set period of time (approximately four to five years, or when the project is ninety percent complete). 13 South Bend Redevelopment Commission Special Meeting — August 8, 2002 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (4) continued... Ms. Roemer asked the value of a tax abatement for the area. If the residents are entering into "the compact ", and paying the fifty (50 %) percent differential between the City and County tax rates and the utility surcharge, she questioned if it would actually be less expensive for them. Ms. Roemer commented that the reason the residents do not want to annex is because they will be receiving City utilities, but will not be paying City taxes. Ms. Roemer asked if the residents would be eligible for tax abatement if annexed. ILMr. Jon Hunt replied that under State law there is a provision that allows, under annexation of a fully developed residential area, for the City to phase -in the amount of property taxes over a period of time. Mr. Jon Hunt addressed other issues in the MOU. He noted the City has a series of priorities for the expenditure of the approximately $67,000 sale proceeds. There are a number of monitoring wells located on the property. If the Developer's plan calls for one of those wells to be relocated, the money would be used for that purpose by request to the Board of Public Works. There is also a water line adjacent to the Villa Development which the City engineers could extend to the Villa site. The developer has also asked for City support with the County and State in terms of fast - tracking and obtaining waivers. 14 South Bend Redevelopment Commission Special Meeting— August 8, 2002 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (4) continued... One of the largest obstacles is the difference between the County and City standards on subdivisions. Referencing Section "A ", the County agrees to City standards because Section "A" is actually located in the City; however, with Section `B" the County Engineer could require that the development be built to County standards, even if it will be annexed into the City in the near future. From the City's perspective, the Public Works Department will be asked to agree to indemnify the County against any damages that would occur should Section `B" not be annexed and it became necessary that County standards to be reapplied to the Development. Even from a conservative standpoint, staff is extremely confident that the annexation will go forward. It was noted that the tough challenge currently is the County allowing Section `B" to be built to City standards at all. Referencing Section "C ", the Westwood Knolls site, without knowing exactly when annexation would occur, the entire site would be built to County standards. Mr. Case advised that there are major design standard differences between the County's regulations and the City's regulations, particularly regarding roads and drainage. Mr. Jon Hunt also advised that the Developer has asked for the right to use the name "The Villas at Lake Blackthorn" for Sections "A" and `B" in referencing the ten 15 South Bend Redevelopment Commission Special Meeting— August 8, 2002 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (4) continued... (10) acre pond, and to use the name "The Westwood Knolls at Blackthorn" for Section "C ". Mr. Hunt indicated that keeping the name `Blackthorn" in public view would certainly be beneficial and will hopefully attract future residents and potential businesses to that area. Another request made by the developer is that, consistent with applicable law, the City retain Abonmarche Consultants to design their sewer lines. It is anticipated that Abonmarche will be designing the sewer lines for both the sewer extension on Orange Road and the interior lines for both the Westwood Knolls project and the villa project. Both clients utilizing the same consultant would ultimately streamline the process and is not inconsistent with past practice in projects such as the one contemplated by this agreement. Mr. Jon Hunt noted that the MOU is referenced as a project description in Resolution No. 1903. Resolution No. 1903 approves and endorses the Project as described in the MOU, authorizes and directs staff and Legal counsel to negotiate and prepare real estate development documents consistent with the MOU, authorizes the President and Vice President or Secretary to sign the agreements in a form acceptable to legal counsel and further permits Developer site access upon receipt of a signed indemnity agreement. 16 L 14 South Bend Redevelopment Commission Special Meeting— August 8, 2002 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (4) continued... Upon a motion by Ms. Roemer, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1903 approving the execution of a Development Agreement and other related documents associated with the Villas at Lake Blackthorn and Westwood Knolls at Blackthorn projects. 7. PROGRESS REPORTS There were no progress reports. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for August 16, 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. Ms. Roemer seconded the motion and the meeting was adjourned at 8:50 a.m. t Robert W. Hunt, President 17 COMMISSION APPROVED RESOLUTION NO. 1903 APPROVING THE EXECUTION OF A DEVELOPMENT AGREEMENT AND OTHER RELATED DOCUMENTS ASSOCIATED WITH THE Val-AS AT LAKE BLACKTHORN AND WESTWOOD KNOLLS AT BLACKTHORN PROJECTS. THERE WERE NO PROGRESS REPORTS. NEXT COMMISSION MEETING ADJOURNMENT i /" 7 � - 0 z' Donald E. Inks, Director Foreman Residential Pre �� 'tf�,di`.� � fp. � � ��at ��f i�{� • r � qtr ? 10 �1 et 41 ' �i�! � - 1 ,. �t x x s � t atf�� ♦ h 7F s 3 w: `•t�RV S: 11) X43 i..... � � a # K � � lg4 •. �:. lot iy :yS r'....+by. as s♦ '.yg�, ilxr c'' t1 / `';tr 14it 4, t° _ IMF 0 r , x , �,c