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HomeMy WebLinkAbout03-28-02 Redevelopment Commission Minutes14 14 SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING March 28, 2002 10:00 a.m. Presiding: Robert W. Hunt, President 1. ROLL CALL Members Present: Legal Counsel: 227 West Jefferson Boulevard South Bend, Indiana Mr. Robert W. Hunt, President Ms. Marcia Jones, Vice - President Mr. Philip J. Faccenda, Secretary Mr. Matt Kahn Ms. M. Catherine Roemer Ms. Cheryl Greene Redevelopment Staff: Mr. Donald Inks, Director Ms. Pamela Morris, Recording Secretary Mr. Owen Rock, Assistant Director Ms. Ann Kolata, Senior Redevelopment Specialist Mr. Bill Schalliol, Economic Development Specialist Mr. Robert Mathia, Economic Development Specialist Mr. Robert Case, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Mr. Terry O'Brien, Economic Development Loan Officer Ms. Cheryl Phipps, Economic Development Secretary Others: Mr. George Weber, Forum Architects, Inc. Mr. Bob Dunbar, Raitt Corporation Mr. Dick Paulen, Barnes & Thornburg Mr. Larry W. Forbach, PEI Genesis, Inc. Mr. John Peddycord, Counsel for PEI Genesis, Inc. Mr. Rich Hill, Baker & Daniels Ms. Anne Bruneel, Baker & Daniels Mr. Robert Jagger, Old Fort Building Supply Mr. Bill Walter, Sr. Mr. Bill Walter, Jr. Ms. Heidi Prescott, South Bend Tribune Mr. Terry Bland, South Bend Tribune Mr. Abraham Marcus, L & H Leasing Mr. Pat McMahon, Project Future Mr. John Devereaux 1 Z r ' G South Bend Redevelopment Commission Special Meeting —March 28, 2002 2. APPROVAL OF MINUTES Commission approval of the Minutes of the Regular Meeting of March 15, 2002. The minutes were not available for approval. 3. APPROVAL OF CLAIMS MINUTES WERE NOT AVAILABLE FOR APPROVAL. Redevelopment Commission Claims submitted March 28, 2002 for approval. 212 CDBG COMMUNITY Travelmore Shelter Pointe Hotel and Marina Donald Inks Federal Express South Bend Tribune Tri County News, Inc. Armstrong Stamp Manufacturing Petty Cash 414 SAMPLE -EWING FUND Envirocorp Inc. Petty Cash 420 SBCDA CB Richard Ellis EIS Environmental Engineers, Inc. Lehman & Lehman, Inc. $ 377.00 997.82 94.90 51.75 152.77 126.70 7.95 44.00 2 680.00 24.00 271.69 900.00 9759.78 r G G L South Bend Redevelopment Commission Special Meeting —March 28, 2002 3. APPROVAL OF CLAIMS (CONT.) 424 TIF SBCDA- BUILDING AEP CB Richard Ellis Hill's True Value Hardware C & S Service, Inc. Richard's Home Center South Bend Water Works 1226.10 1352.31 14.85 120.00 39.99 148.92 $ 2902.17 Upon a motion by Mr. Kahn, seconded by Ms. Roemer and unanimously carried, the Commission approved the Claims submitted March 28, 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 A. Public Hearings (1) Public hearing on Substitute Resolution No. 1876 amending the Sample -Ewing Development Plan. (Sample -Ewing Development Area) Mr. Inks requested that the following items be entered into the record: (1) Affidavits from the Tri- County News and South Bend Tribune that the Notice of Public Hearing was published in those newspapers on March 15, 2002; COMMISSION APPROVED THE CLAIMS SUBMITTED MARCH 28, 2002, AND ORDERED THE CHECKS TO BE RELEASED. THERE WERE NO COMMUNICATIONS. THERE WAS NO OLD BUSINESS. e South Bend Redevelopment Commission IL Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) A. Public Hearings (1) continued... (2) A statement from Bill Schalliol that on March 15, 2002, copies of the Notice of Public Hearing were sent to the affected property owners and registered neighborhood associations; and (3) As of 10:00 a.m. this morning, no written remonstrances were received. Mr. Schalliol explained that Resolution No. 1876 added properties to the acquisition list for the Sample -Ewing Development Area. Properties will be added at the corner of Sample & Olive, a study area for a potential redevelopment site. Mr. Schalliol noted that Resolution No. 1876 was a "substitute" resolution because of an error in Exhibit B indicating a wrong tax key no. and property identifier for a vacant lot located at 1135 S. Franklin Street. This property has been taken off the acquisition list for now and will be added to the acquisition list later in a different resolution. Also, as part of Resolution No. 1876 other properties will be taken off the list for the Sample - Ewing Development Area. Six properties were added last year in error. Those properties should have been added to the South Bend Central Development Area. Mr. Hunt opened the Public Hearing on Resolution No. 1876 and asked if there was anyone who wished to speak. There L South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) A. Public Hearings (1) continued... being no one who wished to speak regarding Resolution No. 1876, Mr. Hunt closed the Public Hearing for whatever action the Commission wished to take. (2) Commission approval requested for Resolution No. 1876. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 1876 amending the Sample -Ewing Development Plan. (Sample -Ewing Development Area.) B. Special Commendation (1) Commission approval requested for Resolution No. 1877 commending Jim Caldwell for exemplary service to the South Bend Redevelopment Commission. Mr. Inks requested that item 6.B.1. be tabled until the next meeting so that Mr. Caldwell could be present. There were no objections and the Commission tabled item 6.B.1. C. Tax Abatements (1) Commission approval requested for Resolution No. 1878 approving an application for real property tax IL deduction for property located at 5 COMMISSION APPROVED RESOLUTION NO. 1876 AMENDING THE SAMPLE -EWING DEVELOPMENT PLAN. (SAMPLE -EWING DEVELOPMENT AREA.) COMMISSION TABLED ITEM 6.B.1. South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) C. Tax Abatements (1) continued... 1915 N. Bendix Drive in the Airport Economic Development Area. (Appletree Associates dba PEI Genesis, Inc.) Mr. O'Brien gave the staff report on the project. Appletree Associates d/b /a PEI Genesis, Inc. proposes to add an additional 20,246 sq. ft. warehouse /distribution facility to its existing building. The building will be constructed on 4.48 acres of land the company presently owns. The petitioner is also planning extensive renovations of existing offices and the exterior of its current building. The total cost for the building and renovation is estimated at $1,455,700. The additional space will enable the petitioner to avoid leasing off - site warehouse facilities and allow the petitioner to remain in the City of South Bend. The petitioner will be able to expand existing sales and services. Per the petition, it is estimated that this project will create two new permanent jobs within the first year, representing a new annual payroll of $40,000 and will maintain ninety existing permanent full - time jobs with an annual payroll of $2,600,000. A review of the tax abatements previously granted finds that the petitioner has not been granted any previous tax abatements. L 6 South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) C. Tax Abatements (1) continued... The property is properly zoned for the proposed project. The property is located in the Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that the petitioner meets the qualifications for a six year real property tax abatement. Based on a total project cost of IL $1,455,700 the cost of the tax abatement is as follows: Mr. John Peddycord, counsel for PEI Genesis, Inc., explained PEI Genesis, Inc. is primarily a connector warehouse operation with some assembly on site. He noted the company has approximately 90 employees, a very diverse workforce, and would be a good addition to the economic development of South Bend. 7 Estimated taxes over 6 years Without abatement $347,968 With 6 -yr abatement $143,440 Estimated cost of 6 -yr abatement $204,528 Mr. John Peddycord, counsel for PEI Genesis, Inc., explained PEI Genesis, Inc. is primarily a connector warehouse operation with some assembly on site. He noted the company has approximately 90 employees, a very diverse workforce, and would be a good addition to the economic development of South Bend. 7 A "IF 14 South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) C. Tax Abatements (1) continued... Mr. Larry Forbach, Site Manager for PEI Genesis, Inc., added that PEI Genesis does not manufacturer any products, but carries an inventory of components that are assembled per customer request. Mr. Forbach advised that 75% of PEI, Genesis, Inc. is warehousing. Upon a motion by Mr. Kahn, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1878 approving an application for real property tax deduction. (Appletree Associates dba PEI Genesis, Inc.) D. Housing There was no housing business. E. South Bend Central Development Area (1) Commission approval requested for Lease Amendment with Esprit Decor in the South Bend Central Development Area. Mr. Inks requested that item 6.E.1. be tabled. There were no objections and the Commission tabled item 6.E.1. (2) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Lawn maintenance, Commission owned properties) 8 COMMISSION APPROVED RESOLUTION NO. 1878 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION. (APPLETREE ASSOCIATES DBA PEI GENESIS, INC. THERE WAS NO HOUSING BUSINESS. COMMISSION TABLED ITEM 6.E.1. South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) E. South Bend Central Development Area (2) continued... Mr. Inks requested that item 6.E.2. be tabled. There were no objections and the Commission tabled item 6.E.2. F. Sample -Ewing Development Area (1) Commission approval requested for proposal for professional services in the Sample -Ewing Development Area. (Appraisal services, vacant lot on Franklin Street) Ms. Kolata explained that five proposals were received for appraisal services of a vacant lot on the west side of Franklin Street. The proposals are as follows: Farrington Appraisals, Inc $800 Witt Appraisal Services $250 FM Stone Commercial $600 Waszak Appraisals, Inc $800 Appraisal Specialists $300 Two proposals are required to establish fair market value and the staff recommends accepting the proposals from Witt Appraisal Services and Appraisal Specialists. Upon a motion by Ms. Roemer, seconded by Mr. Faccenda and unanimously carried, the Commission approved the proposals from Witt Appraisal and Appraisal Specialists for professional services in the Sample - Ewing Development Area. (Vacant lot ILon Franklin Street) 9 COMMISSION TABLED ITEM 6.E.2. COMMISSION APPROVED THE PROPOSALS FROM WITT APPRAISAL AND APPRAISAL SPECIALISTS FOR PROFESSIONAL SERVICES IN THE SAMPLE - EWING DEVELOPMENT AREA. (VACANT LOT ON FRANKLIN STREET) South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) F. Sample -Ewing Development Area (2) Filing of Resolution No. 1880 amending the Sample -Ewing Development Area Development Plan and setting a public hearing on Resolution No. 1880 for Monday, April 15,2002, 10:00 a.m. It was noted by Ms. Kolata that Resolution No. 1880 adds a property to the acquisition list of the Sample -Ewing Development Plan. The property is a vacant lot on Franklin Street. It was incorrectly advertised in the legal notice for the March 28, 2002 public hearing on Resolution No. 1876. The public hearing on Resolution No. 1880 will be set for Monday, April 15, 2002 at 10:00 a.m. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission accepted for filing Resolution No. 1880 and set a public hearing on Resolution No. 1880 for 10:00 a.m., April 15, 2002 at a Special Meeting of the Redevelopment Commission. (3) Staff report on disposition of property in the Sample -Ewing Development Area. (Parcel 21 - Studebaker Corridor Disposition Area) Mr. Schalliol reported that a proposal was submitted by Old Fort Building Supply of South Bend for the purchase of a city owned parcel, referred to as parcel 21, on the corner of Lafayette and Broadway in the Sample -Ewing 10 COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 1880 AND SET A PUBLIC HEARING ON RESOLUTION NO. 1880 FOR 10:00 A.M., APRIL 15, 2002 AT A SPECIAL MEETING OF THE REDEVELOPMENT COMMISSION. South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) F. Sample -Ewing Development Area (3) continued... Development Area. Old Fort Building previously owned the property which was purchased by the City in the 90's as part of a Studebaker Corridor bond project. The purpose of acquiring the site was to revitalize the area and purchase parcels that would allow for opportunities in new development. Mr. Schalliol reported Robert Jagger of Old Fort Building Supply would like to repurchase the property which would be used for a brick and material storage yard. Mr. Jagger currently owns adjoining property which will become a IL paved and landscaped business parking lot. The entire site will be tied together as part of a new development. Mr. Schalliol advised the proposed purchase price of $100 is necessary to keep the City of South Bend under the cap limit set by the 1990 Studebaker General Obligation Bond. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission accepted the proposal submitted by Old Fort Building Supply of South Bend to purchase and develop parcel 21 located at the northeast corner of Lafayette and Broadway. (Sample - Ewing Development Area) (4) Commission approval requested for Acceptance of Assignment of Options from the Urban Enterprise Association. (Sample -Olive Industrial kw� Study Area) 11 COMMISSION ACCEPTED THE PROPOSAL SUBMITTED BY OLD FORT BUILDING SUPPLY OF SOUTH BEND TO PURCHASE AND DEVELOP PARCEL 21 LOCATED AT THE NORTHEAST CORNER OF LAFAYETTE AND BROADWAY. (SAMPLE -EWING DEVELOPMENT AREA) South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) F. Sample -Ewing Development Area (4) continued... Mr. Schalliol reported on a proposed development of land that was recently added to the Sample -Ewing Development Area acquisition list. The project as proposed is an 800,000 sq ft distribution facility on a 70 acre tract of land located at the corner of Sample and Olive Streets. The property is presently in an industrial warehousing distribution area. This project is completely warehouse distribution. It has two phases and will create approximately 800 jobs. IL The Urban Enterprise Association, as well as their agents, have been gathering options on the following seven properties: L & H Leasing which consists of buildings for warehousing and distribution uses; T & C Leasing which also consists of buildings for warehousing and distribution uses; St. Joseph County water retention area; Raiff Corporation, which is presently vacant land; an AEP substation; JVH Incorporated, which is presently an existing truck repair facility; and the South Bend Community School Corporation. Mr. Schalliol advised that the Urban Enterprise Association would like to assign the above mentioned options to the Redevelopment Commission for the Commission's exercise and future purchase. 12 South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) F. Sample -Ewing Development Area (4) continued... Ms. Greene advised with respect to the options that have been negotiated by the Urban Enterprise Association, the negotiated price on the properties captured all costs including relocation. Appraisals were completed for each property. The option agreements that have been negotiated with the respective property owners have taken into consideration some of the leasehold interests that are currently on the property. The options are structured such that leases need not be broken, but will not be renewed. The project does ILI not need the land faster than the leases expire. Mr. Schalliol reported on the first option with JVH Incorporated located at 1818 West Sample Street. It is a six acre parcel of land with approximately 14,000 sq ft of existing building. The purchase price for the property is $525,000. As part of the option agreement, the existing land owner and business will remain on site until December 31, 2002. The second option is with L & H Leasing (north & south properties). There is only one option for both properties and the total site acquisition is approximately 27 acres. There are several buildings and tenants on site which will remain no later than March 31, 2003. The option will ILincorporate a phased take -down of the 13 South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) F. Sample -Ewing Development Area (4) continued... property. The total price for the L & H Leasing property is $2.4 million. The third property is the Raitt Corporation. The Raitt Corporation has two options: one for the northern parcel of 3.2 acres and one for the southern parcel of 16 acres. The total price for both options is $355,200 (southern parcel $296,000 and northern parcel $59,200). The fourth option is for T & C Leasing, a business located at 1130 South Olive Street. The property consists of 5 '/2 acres and an approximately 16,000 sq ft building. The tenant of this building is scheduled to remain on site until March 31, 2003. The purchase price for the property is $560,000. With respect to the remaining three properties, Ms. Greene reported that verbal confirmation was received from AEP that the signed option will be submitted by AEP in approximately two weeks. St. Joseph County and the South Bend School Corporation's property will be conveyed by way of matching resolutions between the respective bodies. Ms. Greene noted that at this point there will be no cost with respect to acquisition of those properties. Ms. Greene advised that the Urban Enterprise Association had negotiated the options with the respective property 14 South Bend Redevelopment Commission IL Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) F. Sample -Ewing Development Area (4) continued... owners, and has taken an action to assign the options to the Redevelopment Commission. Ms. Greene explained that the Commission was being asked only to accept transfer of the options for later execution. Ms. Greene acknowledged the presence of Mr. Marcus, owner of L & H Leasing; representatives from Baker & Daniels, assisting the City; Barnes & Thornburg, representing the end user of the site; and Mr. Dunbar of Raitt Corporation. Upon a motion b Mr. Kahn, seconded P Y by Ms. Roemer and unanimously carried, the Commission approved the Acceptance of Assignment of Options from the Urban Enterprise Association. (Sample -Olive Industrial Study Area) Mr. Faccenda abstained from the vote. (5) Commission authorization requested for Redevelopment Director to exercise the Option from American Electric Power for Tax Key No. 18- 8075- 2841.15 (Sample -Olive Industrial Study Area) Mr. Inks requested that item 6.F.5. be tabled. There were no objections and the Commission tabled item 61.5. 15 UPON A MOTION BY MR. KAHN, SECONDED BY Ms. ROEMER AND UNANIMOUSLY CARRIED, THE COMMISSION APPROVED THE ACCEPTANCE OF ASSIGNMENT OF OPTIONS FROM THE URBAN ENTERPRISE ASSOCIATION. (SAMPLE -OLIVE INDUSTRIAL STUDY AREA) COMMISSION TABLED ITEM 6.F.5. South Bend Redevelopment Commission IL Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) F. Sample -Ewing Development Area (6) Commission authorization requested for Redevelopment Director to exercise the Option from JVH, Incorporated for Tax Key No. 18- 8075-2841.01 (Sample -Olive Industrial Study Area) Ms. Greene reported that a period of due diligence begins as the next phase of the project moves forward. She noted the Redevelopment Director is seeking authorization for execution of the options to purchase the property and undertake the acquisition at the appropriate time. IL Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for Redevelopment Director to exercise the Option from JVH, Incorporated. (Sample -Olive Industrial Study Area) Mr. Faccenda abstained from the vote. (7) Commission authorization requested for Redevelopment Director to exercise the Option from L & H Leasing (North Properties) for Tax Key Nos. 18- 8075 - 2841.21, 18- 8075- 2841.22; L & H Leasing (South Properties) for Tax Key Nos. 18- 8075- 2841.07, 18- 8075- 2841.08,18- 8075- 2841.09, 18- 8075- 2841.10,18- 8075- 2841.11, 18- 8075- 2841.12,18- 8075- 2841.13, 18- 8075- 2841.17,18- 8075- 2841.18, 18- 8075 - 2841.19,18- 8075- 2841.24, 18- 8075- 2841.25. (Sample -Olive Industrial Study Area) 16 COMMISSION APPROVED THE REQUEST FOR REDEVELOPMENT DIRECTOR TO EXERCISE THE OPTION FROM JVH, INCORPORATED. (SAMPLE - OLIVE INDUSTRIAL STUDY AREA) South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) F. Sample -Ewing Development Area (7) continued... Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for Redevelopment Director to exercise the Option from L & H Leasing. (Sample -Olive Industrial Study Area) Mr. Faccenda abstained from the vote. (8) Commission authorization requested for Redevelopment Director to exercise the Option from Raitt Corporation for Tax Key Nos. 18- 8075 -2841 and 18- 8075 - 2841.30 (Sample -Olive Industrial Study Area) Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for Redevelopment Director to exercise the Option from Raitt Corporation. (Sample -Olive Industrial Study Area) Mr. Faccenda abstained from the vote. (9) Commission authorization requested for Redevelopment Director to exercise the Option from T & C Leasing for Tax Key Nos. 18- 8075- 2841.20 and 18- 8075- 2841.28 (Sample -Olive Industrial Study Area) Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for Redevelopment Director to exercise the Option from T & C Leasing. (Sample -Olive Industrial Study Area) Mr. Faccenda abstained from the vote. 17 COMMISSION APPROVED THE REQUEST FOR REDEVELOPMENT DIRECTOR TO EXERCISE THE OPTION FROM L & H LEASING. (SAMPLE -OLIVE INDUSTRIAL STUDY AREA) COMMISSION APPROVED THE REQUEST FOR REDEVELOPMENT DIRECTOR TO EXERCISE THE OPTION FROM RAITT CORPORATION. (SAMPLE - OLIVE INDUSTRIAL STUDY AREA) COMMISSION APPROVED THE REQUEST FOR REDEVELOPMENT DIRECTOR TO EXERCISE THE OPTION FROM T & C LEASING. (SAMPLE -OLIVE INDUSTRIAL STUDY AREA) 14 G LA: South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) F. Sample -Ewing Development Area (10) Commission approval requested for Resolution No. 1879 approving the fair re -use value of property in the Sample -Ewing Development Area. Mr. Schalliol reported that Resolution No. 1879 sets the fair re -use value of property in the Sample -Ewing Development Area for a parcel labeled the Sample -Olive Industrial Area. The disposition parcel size is approximately 70.95 acres. The minimum purchase price per acre is $32,500 and the proposed re -use is warehousing and distribution. Ms. Greene explained that because of a very short time table on the project, the Commission is addressing acquisition and disposition at the same time. Mr. Shalliol advised the disposition price had been reviewed by appraisers and was set above the average of the two appraisals. Upon a motion by Ms. Roemer, seconded by Ms. Jones and unanimously carried, the Commission approved Resolution No. 1879 approving the fair re -use value of property in the Sample - Ewing Development Area. (Sample - Olive Industrial Study Area) Mr. Faccenda abstained from the vote. (11) Commission approval requested for Bid Specifications for property in the Sample -Ewing Development Area. 18 COMMISSION APPROVED RESOLUTION NO. 1879 APPROVING THE FAIR RE -USE VALUE OF PROPERTY IN THE SAMPLE -EWING DEVELOPMENT AREA. (SAMPLE -OLIVE INDUSTRIAL STUDY AREA) South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) F. Sample -Ewing Development Area (11) continued... Mr. Schalliol highlighted the Bid Specifications & Design Considerations as follows: - All offers must meet the minimum price of $32,500 an acre. - The site purchase must include all 70 acres being bid. - The minimum building site coverage should be 20% of the area of the lot. - The minimum building footprint area shall be 800,000 sq ft. - The required use for the site is warehousing/distribution. - All proposals shall meet the 4 requirements of the zoning ordinance. - Bidders are required to present their proposals at the April 15, 2002 Special Meeting of the Redevelopment Commission. Ms. Greene advised that defining bid specifications is part of the disposition process, in anticipation of the Commission acquiring these properties and then ultimately disposing of them. Upon a motion by Ms. Jones, seconded COMMISSION APPROVED THE BID by Ms. Roemer and unanimously carried, SPECIFICATIONS FOR PROPERTY IN THE SAMPLE - the Commission approved the Bid EWING DEVELOPMENT AREA. (SAMPLE -OLIVE INDUSTRIAL STUDY AREA) Specifications for property in the MR. FACCENDA ABSTAINED FROM THE VOTE. Sample -Ewing Development Area. (Sample -Olive Industrial Study Area) Mr. Faccenda abstained from the vote. 19 14 South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) F. Sample -Ewing Development Area (12) Commission approval requested to publish the Notice for Disposition of Land with publication dates of March 29, 2002 and April 5, 2002 and Receipt of Bids at 10:00 a.m. on April 15, 2002. Mr. Schalliol noted that part of the Bid Specification & Design Considerations require proposals be presented at a Special Meeting to be held Monday, April 15, 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 March 29, 2002 and April 5, 2002 and Receipt of Bids at 10:00 a.m. on April 15, 2002. (Sample -Olive Industrial Study Area) Mr. Faccenda abstained from the vote. (13) Commission approval requested for Memorandum of Understanding. Mr. Schalliol stressed the importance of the Memorandum of Understanding between the South Bend Redevelopment Commission and TJX Companies, Inc. Ms. Greene explained that with the assistance of Project Future, The Urban Enterprise Association, and attorneys from Baker & Daniels (Ms. Bruneel and 20 COMMISSION APPROVED THE REQUEST TO PUBLISH THE NOTICE FOR DISPOSITION OF LAND WITH PUBLICATION DATES OF MARCH 29, 2002 AND APRIL 5, 2002 AND RECEIPT OF BIDS AT 10:00 A.M. ON APRIL 15, 2002. (SAMPLE -OLIVE INDUSTRIAL STUDY AREA) South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) F. Sample -Ewing Development Area (13) continued... Mr. Hill) there have been negotiations with TJX Companies, Inc. with respect to a memorandum of understanding (MOU) that expresses the agreement of the Redevelopment Commission and TJX to undertake certain actions in anticipation of a redevelopment project in the Sample -Ewing Development Area. The MOU stipulates that the Commission will acquire properties and go through environmental remediation of the site to remove and demolish any existing improvements on the site. TJX will go through a period of due diligence 'I and negotiating to purchase the properties through the statutory process governing disposition of property by the Redevelopment Commission. Through the MOU, TJX agrees to construct an 800,000 sq ft warehousing and retail distribution center that will ultimately employ 800 persons at the end of a two - phase project. TJX is planning to commence operations on July 1, 2003. At the initial phase TJX will employ 600 employees. Phase two is anticipated to begin approximately 24 to 36 months later with an additional 200 employees to be hired. Within the context of the L MOU we have captured TJX's commitment to total jobs of 800 persons, all new jobs to the area. Ms. Greene explained that it is important to note that while these are entry level type jobs, the employer has a full benefit package 21 r South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) F. Sample -Ewing Development Area (13) continued... available. In terms of the MOU, there are also certain penalties built in should TJX not perform, e.g., certain job targets. In the event that TJX does not meet the job targets at different phases of the project, there is a payback penalty to the Commission based on a per job basis. We have also procured through the MOU a commitment by TJX to use its best efforts to employ qualified city residents as employees, as well as qualified price competitive contractors from the city and surrounding area as construction of the project moves forward. Ms. Greene introduced Dick Paulen of Barnes & Thornburg, who represented TJX in the transaction, George Weber of Forum Architects, who has been working with TJX in terms of the overall site development, Ann Bruneel and Rich Hill of Baker & Daniels representing the City, Pat McMahon from Project Future, and John Devereaux. Ms. Greene asked if anyone wished to comment. Mr. Hunt acknowledged the project was completely consistent with the current development plan for the area and requested a brief overview of TJX. Mr. Schalliol explained that TJX is a retailer of clothing and home products which include T J Maxx Stores, C; 22 South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) F. Sample -Ewing Development Area (13) continued... A J Wright, The Home Goods and Marshalls. They also have the same types of stores in Canada and the United Kindom. The company is very aggressive, strong and stable with good earnings over the last several quarters. Mr. Schalliol noted that there is currently a T J Maxx store in the community and an A J Wright store proposed for the future. This facility initially will be the A J Wright distribution arm for this portion of the country. Pat McMahon commented the City is very excited and pleased to see this project before the Commission for approval. Mr. McMahon also advised that the City would hold a press conference in the afternoon and the Mayor would discuss the project in length. As a final note, Ms. Greene advised that the parties are very cognizant of the tenants currently occupying the property. They are working with property owners and understand each other's needs. Ms. Greene noted while leases are rolling off or terminating, preparation for the site and construction of the project will be ongoing with tenants still remaining in place. The Commission commended the staff for their diligence and hard work on the TJX project. 23 • G' South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) F. Sample -Ewing Development Area (13) continued... Upon a motion by Mr. Kahn, seconded by Ms. Roemer and unanimously carried, the Commission approved the Memorandum of Understanding between the City of South Bend and TJX Companies, Inc. Mr. Faccenda abstained from the vote. G. Airport Economic Development Area (1) Commission approval requested for supplemental agreement for professional services in the Airport Economic Development Area. IL (Lighting work within the Blackthorn West Business Park) Mr. Case reported that this request is an addendum to an agreement previously approved by the Commission. Three quotes were received from electrical contractors for the installation of lighting within the sign easement for the Blackthorn West Business Park. The three proposals are as follows: McMann Electric, Inc. $2,137.00 Garman Electric, Inc. $2,925.00 Brite Electric, Inc. $3,940.00 The staff recommends approval of the supplemental agreement accepting the proposal from McMann Electric, Inc. for $2,137.00 +' 24 UPON A MOTION BY MR. KAHN, SECONDED BY MS. ROEMER AND UNANIMOUSLY CARRIED, THE COMMISSION APPROVED THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SOUTH BEND AND TJX COMPANIES, INC. .. 1. South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) G. Airport Economic Development Area (1) continued... Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the proposal from McMann Electric, Inc. for professional services in the Airport Economic Development Area. (Lighting work within the sign easement in Blackthorn West Business Park) (2) Commission approval requested for proposal for professional services in the Airport Economic Development Area. (Lawn maintenance, Commission owned properties) ILMr. Inks requested that item 6.G.2. be tabled. There were no objections and the Commission tabled item 6.G.2. (3) Commission approval requested for proposal for professional services in the Airport Economic Development Area. (Landscape work within the Blackthorn West Business Park) Mr. Case reported that five quotes were received for landscaping work for a sign easement within the Blackthorn West Business Park in the Airport Economic Development Area. The five bids are as follows: Dave Talboom Lawncare $ 7,308.25 Fuerbringer Landscaping $ 8,150.00 New Frontiers Landscape $ 6,395.00 Ginger Valley Landscape $ 8,647.55 Hunziker Landscaping $10,867.00 25 COMMISSION APPROVED THE PROPOSAL FROM MCMANN ELECTRIC, INC. FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (LIGHTING WORK WITHIN THE SIGN EASEMENT IN BLACKTHORN WEST BUSINESS PARK) COMMISSION TABLED ITEM 6.G.2. South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) G. Airport Economic Development Area (3) continued... The staff recommends accepting the proposal from New Frontiers Landscape for $6,395.00. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the proposal from New Frontiers Landscape for professional services in the Airport Economic Development Area. (Landscaping of sign easement in the Blackthorn West Business Park) (4) Commission approval requested for IL proposal for professional services in the Airport Economic Development Area. (Improvements to the pavilion at the Blackthorn Golf Course) Mr. Rock reported that three proposals have been received to install roll down curtains on the pavilion located at the Blackthorn Golf Course. This item was approved in the capital improvement budget for the golf course. The proposals are as follows: City Awning $2,489.00 Custom Awning $3,110.00 Affordable Awning & Canvas $3,115.00 The staff recommends accepting the proposals from City Awning for $2,489.00. A 26 COMMISSION APPROVED THE PROPOSAL FROM NEW FRONTIERS LANDSCAPE FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (LANDSCAPING OF SIGN EASEMENT IN THE BLACKTHORN WEST BUSINESS PARK) 14 South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) G. Airport Economic Development Area (4) continued... Upon a motion by Ms. Roemer, seconded by Mr. Kahn and unanimously carried, the Commission approved the proposal from City Awning in the Airport Economic Development Area. (Improvement to the pavilion at the Blackthorn Golf Course) (5) Commission approval requested for proposal for professional services in the Airport Economic Development Area. (Parking lot maintenance at the Blackthorn Golf Course) Mr. Rock reported that two quotes were received to seal and stripe the parking lot at the Blackthorn Golf Course for the upcoming season. This item was approved in the capital improvement budget for the golf course and the bids follow: A -1 Striping Service $5,143.70 Arnt Asphalt $5,225.00 The staff recommends accepting the proposal from A -1 Striping Service for $5,143.70. Upon a motion by Ms. Jones, seconded by Mr. Kahn and unanimously carried, the Commission approved the proposal from A -1 Striping Service for professional services in the Airport Economic Development Area. (Improvements to the parking lot at the Blackthorn Golf Course) 27 COMMISSION APPROVED THE PROPOSAL FROM CITY AWNING IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (IMPROVEMENT TO THE PAVILION AT THE BLACKTHORN GOLF COURSE) COMMISSION APPROVED THE PROPOSAL FROM A -I STRIPING SERVICE FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (IMPROVEMENTS TO THE PARKING LOT AT THE BLACKTHORN GOLF COURSE) ' � 7 I 14 1i South Bend Redevelopment Commission Special Meeting —March 28, 2002 6. NEW BUSINESS (CONT.) H. South Bend Medical Services District There was no business. I. West Washington- Chapin Development Area There was no business. J. Other There was no other business. 7. PROGRESS REPORTS There were no progress reports. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for Friday, April 5, 2002 at 10:00 a.m. and a Special Meeting has been called for Monday, April 15, 2002 at 10:00 a.m. 9. ADJOURNMENT THERE WAS NO BUSINESS IN THE SOUTH BEND MEDICAL SERVICES DISTRICT. THERE WAS NO BUSINESS IN THE WEST WASHINGTON -CHAPIN DEVELOPMENT AREA. THERE WAS NO OTHER BUSINESS. THERE WERE NO PROGRESS REPORTS. NEXT COMMISSION MEETING There being no further business to come before the ADJOURNMENT Redevelopment Commission, Ms. Jones made a motion that the meeting be adjourned. Mr. Kahn seconded the motion and the meeting was adjourned at 10:45 a.m. Robert W. Hunt, President 28 ald E. Inks, Director