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HomeMy WebLinkAbout11-16-01 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING November 16, 2001 10:00 a.m. Presiding: Robert W. Hunt, President 1. ROLL CALL Members Present: Member Absent: Legal Counsel: 227 West Jefferson Boulevard South Bend, Indiana Mr. Robert W. Hunt, President Mr. Philip J. Faccenda, Secretary Mr. Matt Kahn Ms. Marcia Jones, Vice - President Mr. James Caldwell Ms. Cheryl Greene Redevelopment Staff: Mr. Donald Inks, Director Mrs. Lorraine Mauk, Recording Secretary Mr. Owen Rock, Assistant Director Ms. Ann Kolata, Senior Economic Development Specialist Mr. Bill Schalliol, Economic Development Specialist Mr. Robert Mathia, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Mr. Gary Overmier, Economic Development Specialist 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of November 2, 2001. Upon a motion by Mr. Kahn, seconded by Mr. Hunt and unanimously carried, the Commission approved the Minutes of the Regular Meeting of November 2, 2001. 1 COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF NOVEMBER 2,200 1. South Bend Redevelopment Commission Regular Meeting— November 16, 2001 3. CLAIMS Redevelopment Commission Claims submitted November 16, 2001 for approval. 212 CDBG COMMUNITY DEVELOPMENT SBC Global Service, Inc. Robert Case Bill Schalliol Owen Rock Catering by Billie National Data Source, Inc. Dainty Maid Bake Shop 324 FUND Meridian Title Corporation Meridian Title Corporation 414 SAMPLE -EWING FUND R.E. Pitts & Associates, Inc. The Title Search Company Metropolitan Title Corporation H.S. Altman Metropolitan Title Corporation South Bend Water Works CFH Landscape Services Abonmarche Group Insty -Print CA Studios 420 SBCDA Meridian Title Corporation Jerome Michaels 424 TIT SBCDA- BUILDING OPERATIONS CB Richard Ellis American Electric Power South Bend Water Works E 111.57 90.00 90.00 118.00 30.24 20.00 13.47 108,250.00 93,750.00 11,000.00 200.00 350.00 150.00 875.00 288.38 8,087.50 9,200.00 8.00 2,407.00 300.00 2,500.00 100.00 406.12 151.88 $ 238,497.16 South Bend Redevelopment Commission Regular Meeting -- November 16, 2001 3. CLAIMS (CONT.) Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Claims submitted November 16, 2001, and ordered the checks to be released. 4. COMMUNICATIONS A. Correspondence from Holladay Property Services requesting permission to use parking lot at 215 S. Main Street. Ms. Greene reported that she had received a letter from Ms. Judy Pershing, who is the Director of Property Management for The Holladay Corporation. (The letter is incorporated by reference) Ms. Pershing requested permission to continue to use the parking lot located at 215 South Main Street, next to the former C. E. Lee building. Holladay is offering to pay $385 per month for the use of the property, and will take responsibility for snow removal and minor maintenance of the lot. The Legal Department recommended the Commission allow permissible use of the lot with the following stipulations: 1) Holladay provide some type of indemnity with respect to liability. 2) Holladay understands that this is a temporary situation until the Commission undertakes redevelopment of the property. 3) Holladay would not be entitled to any relocation benefits. Mr. Inks clarified that the rental agreement would be on a month -to -month basis and that the Commission could, at any time and for any reason, refuse to renew. �i 3 COMMISSION APPROVED THE. CLAIMS SUBMITTED NOVEMBER 16,200 1, AND ORDERED THE CHECKS TO BE RELEASED. South Bend Redevelopment Commission Regular Meeting— November 16, 2001 4. COMMUNICATIONS (CONT.) Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved the proposal from Holladay Property Services to rent the parking lot at 215 South Main Street. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Tax Abatements (1) There were no tax abatements. B. Housing (1) Commission approval requested for Loan and Grant in accordance with the Affordable Loan Program for property located at 2011 High Street. (Alice P. & Marvin Mangus) Mr. Inks noted that the loan is for $6,950 to be repaid in the amount of $91.83 per month for 84 months with an interest rate of 3 %. The grant is for $4514.50. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the Loan and Grant in accordance with the Affordable Loan Program for property located at 2011 High Street. (Alice P. & Marvin Mangus) El COMMISSION APPROVED THE PROPOSAL FROM HOLLADAY PROPERTY SERVICES TO RENT THE PARKING LOT AT 215 SOUTH MAIN STREET. THERE WAS NO OLD BUSINESS. THERE WERE NO TAX ABATEMENTS. COMMISSION APPROVED THE LOAN AND GRANT IN ACCORDANCE WITH THE AFFORDABLE LOAN PROGRAM FOR PROPERTY LOCATED AT 2011 HIGH STREET. (ALICE P. & MARVIN MANGUS) South Bend Redevelopment Commission Regular Meeting - -- November 16, 2001 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) Commission approval requested for Resolution No. 1853 approving the Fair Rental Value for retail space in the South Bend Central Development Area. (l 17 E. Wayne Street - Catering by Billie) The retail space known as Catering by Billie is located at the northwest corner of the intersection of St. Joseph and Wayne Streets. Based on appraisals, the staff recommended the Commission approve a Fair Rental Value of $7.65 per square foot. Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1853 approving the Fair Rental Value of retail space in the South Bend Central Development Area. (117 E. Wayne Street - Catering by Billie) Note: Exhibit "A" to Resolution No. 1853 was subsequently amended during the meeting to correct a scrivener's error by omission. (2) Commission approval requested for Bid Specifications for property in the South Bend Central Development Area. Mr. Inks stated that the Bid Specifications for the property are reported on the document titled Retail Space for Lease. The subject property is located on the ground floor of the parking garage at the intersection of Wayne and St. Joseph Streets. The gross area of the space is approximately 5,042 sft, which includes 2,198 sft of storage, mechanical, and common area not included in the value 5 COMMISSION APPROVED RESOLUTION NO. 1853 APPROVING THE FAIR RENTAL VALUE OF RETAIL SPACE IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (1 17 E. WAYNE STREET - CATERING BY BILLIE) NOTE: EXHIBIT "A" TO RESOLUTION NO. 1853 WAS SUBSEQUENTLY AMENDED DURING THE MEETING TO CORRECT A SCRIVENER'S ERROR BY OMISSION. South Bend Redevelopment Commission Regular Meeting -- November 16, 2001 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (2) Continued... estimate. The net rentable area is 2,844 sft. The Fair Rental Value of the space, as approved by the Redevelopment Commission, is $7.65 per square foot on a net basis. The tenant will have responsibility for separately metered utilities, interior maintenance and taxes. The Lease Term is three years, and includes two consecutive options to renew, each for one additional year. The property will be available January 4, 2001. A description of the property is attached. Returning to Exhibit "A " of Resolution No. 1853, which was just approved. Ms. Greene noted that the Fair Rental Value is mentioned in the review of appraisals, and is also captured in the Bid Specifications, but is not noted in Exhibit "A" of Resolution No. 1853. This information needs to be added, because the purpose of the Resolution is to approve the Fair Rental Value. Mr. Hunt asked if that change could be made or if the item should be tabled. Ms. Greene recommended that the Commission move to amend Resolution No. 1853 to correct Exhibit "A" by adding the Fair Rental Value of $7.65 per sft. Cel South Bend Redevelopment Commission Regular Meeting— November 16, 2001 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (2) Continued... Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission moved to amend Resolution No. 1853 by correcting Exhibit "A" of include the Fair Rental Value of $7.65 per sft for the retail space in the parking garage at the intersection of Wayne and St. Joseph Streets in the South Bend Central Development Area. (117 E. Wayne Street - Catering by Billie) Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved as amended Resolution No. 1853 setting the Fair Rental Value of retail space in the South Bend Central Development Area. (117 E. Wayne Street - Catering by Billie) Returning to the staff report on the Bid Specifications. The Bid Specifications state that no bid less than the $7.65 per sft Fair Rental Value will be considered before January 21, 2002. The staff will consider whether the proposed improvements meet the objectives of the South Bend Central Development Area Development Plan and wether the bidder has the ability to improve and occupy the property with reasonable promptness. The number of jobs to be created or retained will also be a factor in the consideration of any bid. 7 UPON A MOTION BY MR. KAHN, SECONDED BY MR. FACCENDA AND UNANIMOUSLY CARRIED, THE COMMISSION MOVED TO AMEND RESOLUTION NO. 1853 BY CORRECTING EXHIBIT "A" OF INCLUDE THE FAIR RENTAL VALUE OF $7.65 PER SFT FOR THE RETAIL. SPACE IN THE PARKING GARAGE AT THE INTERSECTION OF WAYNE AND ST. JOSEPH STREETS IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (1 17 E. WAYNE STREET - CATERING BY BILLIE) COMMISSION APPROVED AS AMENDED RESOLUTION NO. 1853 APPROVING THE FAIR RENTAL VALUE OF RETAIL SPACE IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (1 17 E. WAYNE STREET - CATERING BY BILLIE) South Bend Redevelopment Commission Regular Meeting— November 16, 2001 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (2) Continued... Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved Bid Specifications for property in the South Bend Central Development Area. (3) Commission approval requested to publish the Notice of Intended Lease of Property in the South Bend Central Development Area with publication dates of November 23, 2001 and November 30, 2001, and receipt of Bids at 10:00 a.m. on December 21, 2001. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission authorized publication of the Notice of Intended Lease of Property with publication dates of November 23, 2001 and November 30, 2001, and receipt of Bids at 10:00 a.m. on December 21, 2001. Mr. Kahn requested if, in the future, the Commission could handle these three items together. Ms. Greene agreed that it would be her recommendation for the future. D. Sample -Ewing Development Area (1) Commission approval requested for Certificate of Completion for Williams Communications, Inc. in the Sample - Ewing Development Area. COMMISSION APPROVED BID SPECIFICATIONS FOR PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. COMMISSION AUTHORIZED PUBLICATION OF THE NOTICE OF INTENDED LEASE OF PROPERTY WITH PUBLICATION DATES OF NOVEMBER 23,2001 AND NOVEMBER 30,200 1, AND RECEIPT OF BIDS AT 10:00 A.M. ON DECEMBER 21,200 1. South Bend Redevelopment Commission Regular Meeting— November 16, 2001 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (1) Continued... Ms. Greene reported that the Certificate of Completion relates to the property located at 1140 Franklin Street that the Commission previously sold to Williams Communications. Williams Communications now has completed all of their obligations under the Contract for Sale of Land for Private Development. Part of that contract requires the Redevelopment Commission to issue a Certificate of Completion. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the Certificate of Completion for Williams Communication, Inc. in the Sample -Ewing Development Area. (2) Staff report on negotiations regarding purchase offer to Allied Products in the Sample -Ewing Development Area. Mrs. Kolata reported that the Commission is presented with a letter addressed to Mr. Steve Towbin, Bankruptcy Counsel for Allied Products, from Mr. Jefferson LeForce at Patton Boggs, the Bankruptcy Counsel representing the Redevelopment Commission. It is a proposed settlement agreement that has been agreed to by Mr. Towbin on behalf of Allied Products. The terms of the proposed settlement are: 1. Allied would transfer by Quit Claim Deed the Allied properties known as The Stamping Plant and the Oliver Plow M COMMISSION APPROVED THE CERTIFICATE OF COMPLETION FOR WILLIAMS COMMUNICATION, INC. IN THE SAMPLE -EWING DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting— November 16, 2001 6. NEW BUSINESS (CONT.) D. Sample -Ewing Development Area (2) Continued... Works properties to South Bend or its designee. The properties would come to the Redevelopment Commission because that's who had sent out the purchase offer. 2. In consideration for such, South Bend would assume all property taxes (real and personal) related to the properties which are due and owing St. Joseph County as of the transfer date. 3. South Bend would agree not to pursue any property claims, including environmental claims, against Allied; except that South Bend would reserve any and all rights to pursue its filed claims against Allied and to collect on those claims, but only to the extent such claims can be satisfied out of applicable insurance proceeds (either recovered in a bankruptcy settlement or outside the bankruptcy case). (Note all parties reserve their rights as to South Bend's filed claims). This means that we have the right to pursue a claim, and they have the right to object to our claim. 4. Allied will provide timely notice to South Bend and its counsel of any and all settlement agreement(s) reached with any and all applicable insurance companies and any motions filed with the bankruptcy court seeking approval of such agreements. 10 South Bend Redevelopment Commission Regular Meeting— November 16, 2001 6. NEW BUSINESS CONT. D. Sample -Ewing Development Area (2) Continued... 5. Allied would agree and the Court would order in the settlement order that the automatic stay would lift 12 months after entry of the settlement order (without further order or application) to allow South Bend to pursue environmental claims, with recovery limited to proceeds from Allied's insurance Policies. However, the stay would not lift in the event that a motion has been filed and an order entered approving a settlement with applicable insurance companies within 12 months. In the event all insurance companies have not settled, the stay will lift as to the non- settling insurance companies. That is a summary of the proposed settlement agreement. If the Commission approves this agreement, the next step, would be for our bankruptcy council to work with theirs to file a proposed settlement agreement and an order for the court that would put the proper language together for the court to consider. Ms. Greene noted that this is just the first step in this process. These are general terms and conditions that will be incorporated into a settlement agreement. The next step will be to formalize this agreement between the parties. All of this will be subject to approval by the bankruptcy court. The staff recommended the Commission take the first step in approving the terms and conditions that would constitute the final settlement 11 South Bend Redevelopment Commission IL Regular Meeting— November 16, 2001 6. NEW BUSINESS C ( ONT.) D. Sample -Ewing Development Area (2) Continued... agreement. Approval of this proposal also gives the Legal Department authorization to work towards the finalization of the settlement agreement and then file all necessary paperwork with the bankruptcy court. The Legal Department as well as the Redevelopment Staff recommend that the Commission accept the proposal in order to acquire control of the property as quickly as possible. 4rw Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved the proposed settlement agreement with Allied Products and authorized the Commission Attorney to prepare and file all necessary documents with the Bankruptcy Court. Mr. Hunt commended the staff for their efforts toward this settlement agreement. (3) Commission approval requested for Resolution No. 1854 establishing certain funds and accounts in connection with the lease dated as of November 12, 2001, between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority relating to the acquisition of certain land and removal of improvements thereon and other related matters. 12 COMMISSION APPROVED THE PROPOSED SETTLEMENT AGREEMENT WITH ALLIED PRODUCTS AND AUTHORIZED THE COMMISSION ATTORNEY TO PREPARE AND FILE ALL NECESSARY DOCUMENTS WITH THE BANKRUPTCY COURT. South Bend Redevelopment Commission Regular Meeting— November 16, 2001 6. NEW BUSINESS (CONY.) D. Sample -Ewing Development Area (3) Continued... Mr. Hunt asked that item 6. D. (3) be removed from the Agenda. There were no objections and the item was removed from the Agenda. E. Airport Economic Development Area (1) Commission approval requested to restructure management at the Blackthorn Golf Course in the Airport Economic Development Area. Mr. Rock reported that Meadowbrook Golf Group manages the golf course in the Blackthorn Corporate Office Park. As part of the contract with Meadowbrook, the positions of Facility Manager and Golf Professional may be combined at the Manager's option, subject to prior written approval of Owner. The manager is formally requesting that the two positions be combined effective December 31, 2001. It is our intention that the 2002 proposed budget for Blackthorn to be presented to the Joint Committee include the reorganization. The Golf Operations staff will be reduced by one full -time employee currently receiving full - time benefits and replaced by a seasonal employee who does not qualify for benefits. The savings will be approximately $25,000 per year. The manager requested written approval from the Owner authorizing reorganization of the Blackthorn staff. 13 THE ITEM WAS REMOVED FROM THE AGENDA. South Bend Redevelopment Commission Regular Meeting— November 16, 2001 6. NEW BUSINESS (CONY.) E. Airport Economic Development Area (1) Continued... Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the restructuring of management at the Blackthorn Golf Course in the Airport Economic Development Area. (2) Commission approval requested for professional services in the Airport Economic Development Area. Mr. Rock reported that the proposal for installation of a sign within the Blackthorn West Business Park includes material procurement and delivery, construction management services, and site preparation and material installation. The total cost associated with the completion of this project is $10,699, and will not include landscaping. Landscaping will be planned for the spring of 2002. The sign will be equivalent to the sign at the entrance of the Blackthorn Corporate Park. Mrs. Kolata asked if the sign will include a light. She asked because the last one had to have a light added later and the landscaping didn't include it. Mr. Rock responded that he would be make sure that lighting was added to the project. Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved the request for professional services in the Airport Economic Development Area. 14 COMMISSION APPROVED THE RESTRUCTURING OF MANAGEMENT AT THE BLACKTHORN GOLF COURSE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. A L South Bend Redevelopment Commission Regular Meeting— November 16, 2001 6. NEW BUSINESS (CONT.) F. South Bend Medical District (1) No Business G. West Washington- Chapin Development Area (1) No Business H. Other (1) No Business 7. PROGRESS REPORTS Mr. Hunt said that he stopped in to see how our new tenant, Copiers Plus, in the Leighton Plaza was doing. He expressed his concern that they were not yet open for retail business. Mr. Mathia said that they were still working on it. He talked to them and their explanation was that it took longer than expected to get telephone lines installed. Ms. Greene reported that Crowe Chizek is having a Ribbon Cutting Ceremony next Wednesday at 11:30. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for December 7, 2001 at 10:00 a.m. 9. ADJOURNMENT THERE WAS NO BUSINESS FOR THE SOUTH BEND MEDICAL DISTRICT. THERE WAS NO BUSINESS FOR THE WEST WASHINGTON- CHAPIN DEVELOPMENT AREA. THERE WAS NO OTHER BUSINESS. NEXT COMMISSION MEETING There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Faccenda made a motion that the meeting be adjourned. Mr. Kahn seconded the motion and the meeting was adjourned at 10:25 a.m. 15 l South Bend Redevelopment Commission Regular Meeting — November 16, 2001 f Robert W. Hunt, President December 3, 2001 2:51 pm 16 Donald E. nks, Director