HomeMy WebLinkAbout06-14-11 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
June 14, 2011
4:00 p.m. 227 West Jefferson Boulevard
Presiding: Marcia I. Jones, President South Bend, Indiana
1. ROLL CALL
Members Present: Ms. Marcia Jones, President
Dr. David Varner, Vice President
Ms. Nancy King, Secretary
Mr. Donald Alford
Ms. Stephanie Spivey
Members Absent: Mr. Greg Downes
Legal Counsel: Mr. Charles S. Leone, Esq.
Mr. Lawrence Meteiver, Esq.
Redevelopment Staff Mr. Jeff Gibney, Executive Director
Mr. Don Inks, Director
Mrs. Cheryl Phipps, Recording Secretary
Mr. Bill Schalliol, Economic Development Specialist
Mr. David Relos, Economic Development Specialist
Mr. Matthew Sikora, Economic Development Specialist
Ms. Debrah Jennings, Property Manager
Others Present: Mayor Stephen Luecke
Mr. Tom Price, Mayor's Office
Ms. Mikki Dobski, Mayor's Office
Mr. Carl Littrell, Division of Engineering
Ms.Beth Leonard Inks, Community & Economic Dev.
Ms. Rita Kopala
Ms. Linda Wolfson, Community Forum for Economic Dev
Mr. David Matthews
Ms. Mo Miller, Prism Science
Mr. Jim Bognar
Mr. David Brenner, Innovation Park
Ms. Karen Moscato
Mr. David Divine
Ms. Regina Emberton, CB Richard Ellis
Mr. Nick Molnar
Mr. Tony Fitts
Mr. Andy Lemberis
Ms. Ann Carol Nash
Mr. Chris Morales
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
1. ROLL CALL (CONT.)
Ms. Valerie Schey, CARE
Ms. Mandy Lehman
Mr. Greg Jones
Mr. James Dally, Mavcon
Mr. Joe Agostinelli, Mavcon
Mr. Steve Sielatycki, Mavcon
Ms. Patti Lesniewicz, Economic Development
Ms. Geri Hathaway, Hathaway2
Mr. Mark Peterson, WSBT
Mr. Dan Jones
Ms. Jones noted that Mayor Luecke was present at the
meeting to make the presentation for Item 6.D.(1). She
asked that that item be moved to the top of the Agenda
due to the Mayor's tight schedule. There was no
objection and the item was so moved.
6. NEW BUSINESS
D. Airport Economic Development Area
(1) Memorandum of Understanding between
Innovation Park, Notre Dame, Inc. and the
City of South Bend, Indiana on behalf of
Ignition Park
Mayor Luecke, noted he is a board member
for Innovation Park and that there has been a
wonderful partnership between the
University of Notre Dame's Innovation Park
and the city's sister tech park, Ignition Park.
The Mayor's term is coming to an end and
staff wanted to memorialize the relationship
in a Memorandum of Understanding.
Innovation Park will facilitate an introduction
to future graduates of Innovation Park as
potential clients for Ignition Park. The role
of Innovation Park is to accelerate client
companies to develop suitable milestones, to
maintain ongoing communication with
Ignition Park, and to promote the potential
merits and suitability of Ignition Park. The
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South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
D. Airport Economic Development Area
(1) continued...
city's part is to continue to develop Ignition
Park, provide public transportation, publicity,
marketing campaigns and to generally
support the partnership that has developed.
As Ignition Park matures the city may
construct a building and develop software
systems compatible with one another so that
it is seamless for clients to move from
Innovation Park to Ignition Park.
Mayor Luecke asked for favorable
consideration of the Memorandum of
Understanding.
Mr. Varner asked if Innovation Park would
also partner with Ignition Park for some of
the advertising costs. The Mayor answered
that Innovation Park does some of its own
marketing, including working with Blue
Waters Group for promotion and marketing.
In the future, yes, the city will expect to do
joint advertising with Innovation Park.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED THE MEMORANDUM
Ms. King, and unanimously carried, the OF UNDERSTANDING BETWEEN INNOVATION
Commission approved the Memorandum of PARK,NOTRE DAME,INC.AND THE CITY OF
SOUTH BEND,INDIANA ON BEHALF OF
Understanding between Innovation Park, IGNITION PARK
Notre Dame, Inc. and the City of South Bend,
Indiana on behalf of Ignition Park.
2. APPROVAL OF MINUTES
A. Approval of Minutes of the Regular Meeting of
Tuesday, May 24, 2011.
Upon a motion by Ms. King, seconded by Mr. COMMISSION APPROVED THE MINUTES OF THE
Varner, and unanimously carried, the Commission REGULAR MEETING OF TUESDAY,MAY 24,
2011.
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South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
2. APPROVAL OF MINUTES (CONT.)
A. continued...
approved the Minutes of the Regular Meeting of
Tuesday, May 24, 2011.
3. APPROVAL OF CLAIMS
Redevelopment Commission Claims submitted June 14, 2011 for approval.
324 AIRPORT AEDA
Dore &Associates Contracting 121,458.10 Studebaker Area A Demolition Ph IV
DLZ 4,345.00 Underground Pipe and Valve Demolition
Weaver Boos Consultants 94,924.00 Studebaker Area A Demolition Ph IV
Lehman&Lehman Inc 2,720.00 Voorde Park Master Plan
DHA 1,330.00
Meridian Title Corporation 1,800.00
Richard J. Svobode 350.00 609 Columbia St
Blue Water Group Inc. 58,887.75 Ignition Park Marketing
Davis Ford&associates 28,800.00 Profession Services
BSA LifeStructures 10,620.00 Ignition Park Marketing
Grauvogel &Associates 5,970.00 Ignition Park South
Michaels Appraisal Services 1,800.00 Appraisal 109-111 N Taylor St.
D14A 16,187.00 Mayflower Road- Cleveland to Brick
Plew, Shadley Racher 2,894.40 Studebaker/Oliver
Christopher B. Burke 10,308.50 Demo of 236 Sample
DLZ 34,050.00 US 31/Adam
Abonmarche 7,000.00 Mayflower Road Sanitary Sewer
Ancon Construction, Inc. 264,017.44 Memorial Hospital Streetscape
Indiana&Michigan Power Co 296.65 LaSalle Hotel
Tri County News 113.78
South Bend Tribune 50.81
Hathaway 2, Inc. 8,434.80 Ignition Park
Jackson Trucking &Excavating 14,725.00 Demo of Commercial Properties
Tri County News 14,725.00
R.E. McCloskey&Associates, Inc. 2,000.00 Appraisal 109-111 N Taylor St.
South Bend Tribune 224.07
Lehman&Lehman Inc 7,280.00 Voorde Park Master Plan
Oliver Plow Memorial/Oliver Trail/Oliver
L.L. Gean Construction Co. 75,229.86 Industrial Park Entry Sign
D14A 2,550.00 Oliver Trail System along Oliver Plow
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South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
3. APPROVAL OF CLAIMS (CONT.)
324 AIRPORT AEDA continued
DLZ 2,160.00 Oliver Rd Demo
DLZ 1,260.00 Trade Dr Improvements
DLZ 25,410.00 Olive Corridor
DHA 2,709.00 Road& Storm Drainage Const
Appraisal 604 S Scott
R.E. Pitts &Associates, Inc. 4,990.00 St./Western/Williams/Taylor/Wayne St
Ken Herceg &Associates, Inc 13,182.00 Sheridan Ave &Lincoln Way West
Christoper B Burke 10,308.50 Demo 236 Sample
420 FUND TIF DISTRICT-SBCDA GENERAL
Daktronics, Inc 47,634.00 Coveleski Stadium Scoreboard
Jack J. Kary 2,100.00 Appraisal
D14A 3,370.00
Northern Indiana Public Service 32.10 329 S Lafayette Blvd
Downtown South Bend, Inc 15.91 325 S Lafayette Blvd
Indiana Michigan Power 177.42 329 Lafayette
Indiana Michigan Power 296.65 237 N Michigan St.
Abonmarche 4,800.00 621 East Jefferson Streetscape
Downtown South bend Inc 23,125.00 Beautification Program
Indiana Earth Inc. 50,091.89 Demo Fred's Transmission& Clutch
David Waszak Appraisals, Inc 4,380.00 Appraisal
430 FUND SOUTH SIDE DEVELOPMENT TIF AREA 41
Meridian Title Corporation 50,739.54 748 Hawbaker
Jackson Trucking &Excavating 14,000.00 Demo 4215 S Main St
Lawson-Fisher Associates P.C. 73,922.68 Main St/Lafayette Blvd Connector
Christoper B Burke 2,000.00 Corridor&Intersection Improvements
438 FUND COVELESKI BOND
J.E.M Morris Construction, Inc 108,299.22 Coveleski Stadium
$ 1,238,096.07
Upon a motion by Ms. King, seconded by Mr. Varner COMMISSION APPROVED THE CLAIMS
and unanimously carried, the Commission approved the SUBMITTED JUNE 14,2011,AND ORDERED THE
Claims submitted June 14, 2011, and ordered checks to CHECKS TO BE RELEASED.
be released.
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South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
4. COMMUNICATIONS
A. Communication from 97 taxpayers of South
Bend/Mishawaka regarding additional funding
for South Bend Animal Care and Control.
Mr. Inks noted that the Commission received the
following letters from Valerie Schey and Pam
Wesolowski in support of funding of the City of
South Bend's own animal care facility. At the last
meeting the Commission decided this was a policy
issue for the mayor and Council to decide.
Following a decision at that level, the
Redevelopment Commission could consider the
use of TIF funding for a new facility if that's the
direction the city wanted move in. The
Commission will continue to wait for further
direction from the Mayor and the Council. The
Communications from Ms. Schey and Ms.
Wesolowsi are included here in their entirety.
618111 E-mail; COMMUNICATION FROM 97 TAXPAYERS
Dear President Jones,
I am writing in regard to next Tuesday's (6114)
Redevelopment Commission Agenda (attached).
Respectfully, I would like to ask if you would be
willing to reintroduce agenda item 6 c. (4)from the
5124111 agenda to the 6114111 agenda. This issue
has been the source of on-going debate since 1996
Further debate will only lead to more adoptable
animals being euthanized due to the significant
space constraints at the current South Bend Animal
Care and Control(SBA CC)facility.
I am not alone in my desire to see this funding
request and this construction project move
forward. For you reference, I have attached a
citizens letter of request with the corresponding
signatures to support our request.
Due to the logistics of doubling the intake at one
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South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
4. COMMUNICATIONS (CONT.)
A. Communication from 97 taxpayers
facility, the suggestion of merging the animal
control agencies would likely only increase the
number of adoptable animals euthanized and not
decrease that number as some have suggested.
Finally, we respectfully ask that you consider our
sense of urgency regarding this request. For every
additional month that this project gets delayed,
another estimated 223*animals will be
euthanized. Please provide us with the courtesy of
a reply to this e-mail.
Thank you for your understanding in this matter.
Sincerely,
Valerie Schey
1314 E. Wayne St. North
South Bend, IN 46615
618111 Letter; COMMUNICATION FROM VALERIE SCHEY
June 8, 2011
South Bend Redevelopment Commission
1200 County City Building
227 W. Jefferson
South Bend, IN 46601
Dear Honorable President Jones,
We, the undersigned South Bend taxpayers,
respectfully request that the South Bend
Redevelopment Commission reintroduce agenda
item 6c. (4)from the 5124111 agenda to the
6114111 agenda. This issue has been the source of
on-going debate since 1996 Further debate will
only lead to more adoptable animals being
euthanized due to the significant space constraints
at the current South Bend Animal Care and
Control(SBA CC)facility.
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South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
4. COMMUNICATIONS (CONT.)
A. Communication from Valerie Schey
Respectfully, we urge the Redevelopment
Commission to support the request for additional
funding for the new SBACC facility for the
following reasons:
• SBA CC manages over 4,000 animals each year.
Due to the severely limited holding space in the
current facility, we are faced with having to
euthanize approximately 65% of those animals
every year. Many of these animals are healthy,
adoptable animals that we simply can no longer
hold.
• SBA CC welcomes thousands of visitors every
year. The current building is a poor reflection of
what our community is capable of and; sadly for
our handicap visitors the building is not handicap
accessible.
• SBA CC has several structural issues as a result
of its age. For example, the building has appalling
drainage problems due to the aging plumbing.
•Another issue with the building is the lack of
adequate ventilation and airflow. Airflow and
ventilation become a particular problem when
there are sick animals in the shelter. Many of the
common pathogens that affect animals are
airborne pathogens. Without adequate airflow
and/or the space to quarantine sick animals;
diseases spread rapidly throughout the building.
We believe that in addition to the direct benefits
that SBA CC customers and the animals in our care
will enjoy; there are many indirect benefits that the
surrounding neighborhood will experience as well.
Some of these benefits include:
• The new facility will be an attractive addition to
our City's Westside. As a public facility, the new
building will be "an attraction" that will draw
visitors to the Westside whom may not regularly
visit these neighborhoods otherwise. As these
visitors and volunteers spend time in this
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South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
4. COMMUNICATIONS (CONT.)
A. Communication from Valerie Schey
neighborhood, they will likely seek retail and
restaurant outlets in this area. This will bode well
for local businesses. This is currently true for
volunteers and staff who seek lunch options during
(or after) their shifts.
•Having a public facility that operates on a 365,
24 x 7 schedule will increase neighborhood
surveillance. This will be good for neighborhood
safety.
• On a weekly basis, SBA CC staff is responsible for
monitoring several juvenile offenders as they
complete their community service requirement at
our facility. With a newer, safer facility, we will be
better able to work with these children in a
2
way that is more constructive for the children's
development and supportive of our staff.
•Incorporated into the new building's design is a
spay/neuter clinic. We have already received
commitments from local veterinarians who will be
donating their time to perform free spay/neuter
surgeries for our animals. This would remove the
expense from potential adopters. We also hope to
utilize the surgical suite to continue the already
very popular Neuter Scooter service for the
community.
•An attractive, more welcoming facility will
provide us with ample opportunities to host
community classes in the building. These classes
can range from basic obedience classes to more
advanced workshops lead by local animal health
and welfare leaders such as Dr. Jocelyn Rudman,
DVM.
As South Bend taxpayers, we appreciate the
oversight and scrutiny your committee applies to
requests made for TIF funding. We all need to be
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South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
4. COMMUNICATIONS (CONT.)
A. Communication from Valerie Schey
responsible stewards of the City's resources. Here
are the reasons why we are opposed to the
suggestion made by the South Bend Common
Council to outsource our City's animal care and
Control services to a private, third party agency:
• The outsourcing public services to private, third
party agencies results in a loss of transparency
and accountability for the taxpayer.
• The issues that lead to the development of an
internal animal control agency would likely
develop again if the City were to return to
outsourcing this service.
•If the aforementioned issues were to arise once
again, it is an ineffective public safety model to
have South Bend Police and Fire having to
respond to animal care and control calls.
• Over the anticipated 40 year life cycle of the
proposed new facility, SBA CC will be the home of
approximately 4,000 4,500 animals per year.
With construction costs estimated at a total of$1.8
Million; the estimated up front capital cost per
animal served is only about$10.
Finally, we ask respectfully that you consider our
sense of urgency regarding this request. For every
additional month that this project gets delayed,
another estimated 223*animals will be euthanized.
Thank you for your understanding in this matter.
Cordially,
Valerie Schey
CARE
Ms. Jones noted that the Commission is a
voluntary board and not an elected board. Policy
decisions rightfully belong to the elected officials
and for the Commission to make policy decisions
would be inappropriate. Therefore, the
Commission will await direction from the Council.
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South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
4. COMMUNICATIONS (CONT.)
B. Communication from Pam Wesolowski
regarding additional funding for South Bend
Animal Care and Control
Dear President Jones, COMMUNICATION FROM PAM WESOLOwSKI
I recently heard about the South Bend Common
Council's decision to table a request from Code
Enforcement Director Catherine Toppel for an
additional$300,000 to build South Bend's new
animal shelter. The new shelter building is long
overdue for South Bend whose officials keep billing
it as a "2 Is'Century City. "I strongly oppose the
Common Council suggestion that South Bend
Animal Control merge with the St. Joseph County
Humane Society, and I applaud Council President
Derek Dieter's refusal to sign on to that.
It doesn't consolidate "duplicate"services as
common council members have stated in a letter
dated May 25, 2011 to the Redevelopment
Commission. That would be like saying that South
Bend didn't need an airport because Chicago has
one. We have thousands of animals that enter each
separate animal control facility each year and we
need to support the most humane response to
animal care and control as we can.
South Bend Animal Care and Control has a track
record of working with rescue groups such as Pet
Refuge and Heartland Small Animal Rescue to
keep from having to euthanize healthy, adoptable
animals. SBA CC has also worked with Michiana
Feral Cat Initiative to help humanely reduce stray
cat overpopulation in South Bend through TNR.
(The St. Joseph County Humane Society will not
even work with local rescue groups who are
willing to pull dogs and cats, even though it would
save the lives of hundreds of animals within the
system). A new shelter, at a cost of an additional
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South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
4. COMMUNICATIONS (CONT.)
B. Communication from Pam Wesolowski
$300,000, would do much to allow SBA CC to
improve their efforts and would improve the
environment for employees,potential adopters and
the animals alike.
How we treat the animals in our community goes
to the heart of us as a community and has a huge
impact on our image to residents and non-residents
alike. SBA CC, as well as SJCHS both display
"compassion fatigue"and the euthanasia numbers
for each entity reflect that. If South Bend Animal
Care and Control services are contracted out to
the St. Joseph County Humane Society, any ground
that has been gained will be lost in the efforts that
have been made to make us a better, more
progressive community as it relates to animal
welfare.
The St. Joseph County Humane Society has a track
record of misleading the public and do so to this
day. They state they are no-kill when you ask, yet
their euthanasia rates are still around 69%and
higher. And at the suggested costs proposed to
merge, South Bend will end up spending more for
services than they ever would with a new shelter
under the City of South Bend's control.
$300,000 is not a lot to spend for a building that
will service us for many years to come. (Just think
about how much money has been spent on
Coveleski stadium alone! $300,000 is a small cost
to do a better job at saving lives and providing
safety for more of our animals. It's time for this
community to take a step forward with animal
welfare and show that sentient lives do indeed
matter.
If you consolidate SBA CCs services with the
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South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
4. COMMUNICATIONS (CONT.)
B. Communication from Pam Wesolowski
Humane Society, you will do a serious disservice to
the animals and the citizens who care about them.
Please support South Bend Animal Care and
Control. I urge you to vote to fund the new shelter
for SBA CC so they can become a model for our
animal control facilities on more compassionate
care.
Sincerely,
Pam Wesolowski
1102 South 32nd Street
South Bend, IN 46615
5. OLD BUSINESS
There was no Old Business. THERE WAS No OLD BUSINESS
6. NEW BUSINESS
A. Public Hearings
(1) Public Hearing on Resolution No. 2881
appropriating tax increment financing
revenues from Allocation Area No. 1 Fund
for the payment of certain obligations and
expenses related to the Airport Economic
Development Area Allocation Area No. 1
Ms. Leonard Inks noted that Resolution No.
2881 requests an additional of$8,500,000 in
the Airport TIF. Staff expects sufficient
revenue in the Airport TIF to cover these
additional costs.
Mr. Inks provided a report showing how the
original appropriation has been allocated
among various projects, and the intended
uses of the additional appropriation including
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South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
A. Public Hearings
(1) continued...
replenishment of a reserve so that as projects
are ready to move ahead, there will be funds
available to pursue those projects.
Mr. Varner questioned if this was the
statutory annual notice that TIF funds are
needed in the TIF area. Mr. Inks replied that,
no, that notice will be made at the June 28
meeting. It is due by mid-July each year.
Mr. Inks noted that the public hearing file is
complete, containing (1) a copy of
Resolution No. 2880 determining to make the
appropriation and public hearing on
Resolution No. 2881; (2) a copy of the notice
of the hearing; (3) a copy of Resolution
No. 2881; Mr. Inks noted that we do not yet
have the affidavit from the South Bend
Tribune verifying a notice was published in
the newspaper on June 3, 2011, but staff did
personally verify that notice was made in the
South Bend Tribune on that day and we are
expecting an affidavit delivered from the
SBT shortly. We did receive (4)the affidavit
from the Tri-County News that the notice of
hearing was published on June 3, 2011.
Ms. Jones opened the public hearing for PUBLIC'HEARING ON RESOLUTION No.2881
anyone who wished to speak for or against
Resolution No. 2881. There was no one who
wished to speak. Ms. Jones closed the public
hearing for whatever action the Commission
wished to take.
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South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
A. Public Hearings
(2) Consideration of Resolution No. 2881
Upon a motion by Ms. King, seconded by COMMISSION APPROVED RESOLUTION No.2881
Mr. Alford and unanimously carried, the APPROPRIATING TAX INCREMENT FINANCING
Commission approved Resolution No. 2881 REVENUES FROM ALLOCATION AREA NO. 1
FUND FOR THE PAYMENT OF CERTAIN
appropriating tax increment financing OBLIGATIONS AND EXPENSES RELATED TO THE
revenues from Allocation Area No. 1 Fund AIRPORT ECONOMIC DEVELOPMENT AREA
for the payment of certain obligations and ALLOCATION AREA No. I
expenses related to the Airport Economic
Development Area Allocation Area No. 1.
(3) Public Hearing on Resolution No. 2876
confirming a resolution amending the
Development Plan of the West
Washington-Chapin Development Area
and adding one or more parcels to the List
of Parcels to be Acquired (803 W.
Washington)
Mr. Varner pointed out a scrivner's error on
the Agenda: the public hearing is on
Resolution No. 2876, not Resolution
No. 2899.
Mr. Inks noted that the public hearing file is
complete, containing (1) A copy of
Resolution No. 2860 amending the
Development Plan for the West Washington-
Chapin Development Area and adding one or
more parcels to the List of Parcels to be
Acquired.; (2) A copy of Area Plan
Commission Resolution No. 218-11
approving declaratory Resolution No. 2860
of the Redevelopment Commission.; (3) A
copy of South Bend Common Council
Resolution No. 4107-11 approving
declaratory Resolution No. 2860 of the
Redevelopment Commission; (4) A copy of
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South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
A. Public Hearings
(3) continued...
the Notice of Hearing; (5) A copy of
Resolution No. 2876; (6) An affidavit from
Jacki Krolczyk, Advertising Director of the
South Bend Tribune, that the Notice of
Hearing was published in that newspaper on
May 27, 2011; (7) An affidavit from Richard
Andrysiak, Classified Manager of the Tri-
County News, that the Notice of Hearing was
published in that newspaper on May 27,
2011; (8) A statement from David Relos that
on May 27, 2011 affected property owners
and registered neighborhood associations
were sent notice of the Public Hearing; and
(9) The mail was checked prior to this
meeting. As of 4:00 p.m., June 14, 2011,
there were no written remonstrances received
related to Resolution No. 2876.
Mr. Relos noted that on April 26, 2011, the
Commission approved declaratory
Resolution No. 2860. On May 17, 2011, the
St. Joseph County Area Plan Commission,
approved its Resolution No. 218-11, which
approved, ratified, and confirmed Resolution
No. 2860, determining that it conforms to the
plan of development for the City. On
May 23, 2011, the South Bend Common
Council, approved its Resolution No. 4107-
11, which approved, ratified, and confirmed
the Area Plan Commission's Resolution
No. 218-11. The final process in amending
the Development Plan is the public hearing
and consideration of confirming Resolution
No. 2876.
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South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
A. Public Hearings
(3) continued...
Mr. Varner questioned whether the Council
Resolution No. 4107-11 was the correct
number. Staff assured him that was the
number on the certified copy of the Council
resolution.
Ms. Jones opened the public hearing on PUBLIC'HEARING ON RESOLUTION No.2876
Resolution No. 2876 for anyone who wished
to be heard.
MR. JIM BOGNAR, 805 W. Washington St.:
My property is adjacent to 803 W.
Washington, and this October will have been
there for fifty years. The first question I
want to ask as you are as you were going
through clarification, I noticed on the agenda
6.A(3), when it notes a public hearing on the
resolution, it talks about the Airport
Economic Development Area. I believe that
should be the West Washington-Chapin
Development Area. (Staff agreed.) I don't
know whether that causes a problem with
anything else, but I wanted to note that. I'd
like to thank the Commission for their
education, and the Area Plan and the City
Council for their support. I'd also like to
thank Jeff Gibney for his work with this
particular property owner as there's been a
long history of this. I would also like to
thank Don Inks for his time and his energy.
There's been a lot of negativity in the press
and in a lot of areas lately. We have done a
lot of things right in this community. I'm
very privileged to be in the museum district,
Copshaholm (Mr. Oliver's house), the Center
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South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
A. Public Hearings
(3) continued...
For History, readapted use of the old Court
House, the Studebaker Museum, the Civil
Rights Museum, Natatorium, and soon the
Kroc Center. These are very positive parts of
our community and I'm very proud to live in
this community. I'm very proud of the work
everybody does.
You've heard the name of Mr. Kizer.
Briefly, I wanted to mention that he was a
life-long resident of South Bend, from 1846
until 1917. Seventy years. He was educated
in the local school system. He was a revenue
collector for the United States during the
Civil War. In 1871, he married a woman
from a prominent family. He was a City
Commissioner which was the forerunner of
the City Council. And I hope that this
doesn't cause it to be voted down: he was
President and a Republican. He formed a
lifetime business partnership with his
childhood friend, Jacob Wolverton. He had
an office for a time in the northwest corner of
Washington and Michigan. He was the
director of two local banks and part of a
group of businessmen who created the South
Bend Malleable Steel Range Manufacturing
Company. He was an advocate of South
Bend at an important time of its history and,
finally, I think that Mr. Inks and Mr. Gibney
would find that he was part of the earliest
efforts of community and economic
development. And while he's 150 years
from being active, really, in this community,
a lot of what everyone is trying to do today
goes back to this. I would think that we'd be
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South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
A. Public Hearings
(3) continued...
looking for people like Kizer and Wolverton
and others today. I ask you to support this
but also to challenge Redevelopment to
rehabilitate this property. In the short run it
will benefit me. I mentioned to Mr. Inks. I
said that there are two kinds of folks that get
up here (meaning the podium), people who
want something and people who are against
something. In the short run, it will benefit
me. In the long run, I believe it will benefit
this community. I hope that you will pass it,
but more importantly, I hope that you will
pay attention to how Community &
Economic Development works with it. I
think it's a wonderful way to start a lot of
positives that everybody's here for, for other
things for our community. I wanted to
mention a few things about this great man
and the building that I've been privileged to
be next to for a long time. Does anybody
have any questions? Thank you for
everything. I appreciate it very much.
Mr. Leone noted that he checked the Notice
of Hearing that was published and the notice
gave the correct resolution number. So there
is no problem with the public hearing.
Ms. Jones asked if there was anyone else
who wished to speak regarding Resolution
No. 2876. There was no one who wished to
speak. Ms. Jones closed the public hearing
for whatever action the Commission wished
to take.
19
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
A. Public Hearings
(4) Consideration of Resolution No. 2876
Mr. Varner asked what the plans were for the
property. Mr. Gibney answered that staff is
having active conversation with The Center
For History which is located across the street.
One of the uses being considered is for
additional archive storage. Secondly the very
top floor contains small apartments. Mr.
Gibney's suggestion was to leave them as
apartments and as the opportunity rolls
around for internships at all of the museums
in that neighborhood, they could be used as
affordable housing for college student interns
working at the various museums. He noted
that we are still in the planning stage.
Upon a motion by Ms. King, seconded by COMMISSION APPROVED RESOLUTION No.2876
Mr. Varner and unanimously carried, the CONFIRMING A RESOLUTION AMENDING THE
Commission approved Resolution No. 2876 DEVELOPMENT PLAN OF THE WEST
WASHINGTON-CHAPIN DEVELOPMENT AREA
confirming a resolution amending the AND ADDING ONE OR MORE PARCELS TO THE
Development Plan of the West Washington- LIST OF PARCELS TO BE ACQUIRED(803 W.
Chapin Development Area and adding one or WASHINGTON)
more parcels to the List of Parcels to be
Acquired (803 W. Washington)
B. Housing
(1) Loan and Grant in connection with the
South Bend Home Improvement Program
for property located at 425 LaMonte
Terrace (Mark& Katherine Garwood).
Mr. Inks noted that the loan is $6,350. The
grant is $6,156.50.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED THE LOAN AND GRANT
Mr. Alford and unanimously carried, the IN CONNECTION WITH THE SOUTH BEND HOME
Commission approved the Loan and Grant in IMPROVEMENT PROGRAM FOR PROPERTY
connection with the South Bend Home LOCATED AT 425 LAMONTE TERRACE(MARK&
20
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
B. Housing
(1) continued...
Improvement Program for property located at KATHERINE GARWOOD)
425 LaMonte Terrace (Mark& Katherine
Garwood).
(2) Loan and Grant in connection with the
South Bend Home Improvement Program
for property located at 544 N. Sunnyside
Avenue (Traci Gammage).
Mr. Inks noted that the loan is $8,000. The
grant is $7,822.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED THE LOAN AND GRANT
Mr. Alford and unanimously carried, the IN CONNECTION WITH THE SOUTH BEND HOME
Commission approved the Loan and Grant in IMPROVEMENT PROGRAM FOR PROPERTY
LOCATED AT 544 N. SUNNYSIDE AVENUE(TRACI
connection with the South Bend Home GAMMAGE).
Improvement Program for property located at
544 N. Sunnyside Avenue (Traci Gammage).
C. South Bend Central Development Area
(1) Staff report on proposal for disposition of
property (Northeast corner Jefferson &
Niles).
Mr. Relos noted we have a preliminary
development plan for the corner of Jefferson
and Niles, referred to as the Troegger(Sheet
Metal) site. It is a 1.266 acre site, which was
acquired by the Commission in December
2010. This property was put through the
disposition process in 2011, concluding with
the receipt of no bids on April 26, 2011.
Mr. David Matthews has now approached
staff with development plans for this site.
Similar to Mr. Matthew's site plan for the
21
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(1) continued...
Rink site, this development would include 10
townhouse style condominiums with two
potential commercial buildings. Expected
starting prices will be in the $200,000 range.
Units will be approximately 1,400 square
feet, 2 '/2 stories, all brick, with 3 bedrooms,
3 '/z baths and with 2 car attached garages.
Mr. Relos noted that the Contract for Sale is
currently being drafted by our Legal
Department, and will include the requirement
for Commission approval of the final site
plan and development specifications, and
will define use restrictions and set a
completion date of 36 months.
The selling price of the parcel is $10, with
the developer agreeing not to seek tax
abatement for the project (5 years tax savings
on 10 units has an estimated value of
$93,000). Under this plan, the developer is
requisitioning no further Commission
financial participation. The site plans call for
77 guest and street parking spaces along
Jefferson, Washington, and behind the
building. Staff recommends accepting the
proposal from David Matthews and
authorizing legal counsel to proceed with the
Contract for Sale of Land.
Mr. Matthews noted that about 14 months
ago he received approval for his Eastbank
Townhomes on Colfax Avenue. Since then
six townhomes are under construction with
four of them sold. The initial expectation
was to build three immediately and the
remaining three within three years. He has
22
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(1) continued...
built all six at once, so that site will be
developed three times faster than expected,
with very positive feedback from the
community. Mr. Matthews would like to
repeat the process again and try to develop a
market for denser living in downtown South
Bend. He is aware of the city's intent to
develop housing at the former Transpo site
on Northside Blvd. He said there's not a
market in the area for anything other than
single family detached homes. He would
like to provide an urban housing option for
people in the area and increase demand for
urban housing. He's gotten a lot of positive
feedback on the East Bank Townhomes.
Some people have said they moved here
three or four years ago and there weren't any
urban condos available, so they bought
single-family homes in and around South
Bend. By doing these projects, he would like
to show that there is demand and a market for
denser housing. Then, perhaps, the Transpo
site and other East Bank infill could be
developed as condos, resulting in more
people living downtown.
Mr. Matthews noted that he's proposing to
construct ten townhomes, each with two car
garages, and two parking spaces outside.
The northern-most lot on the corner of
Washington and Niles will be reserved for
future commercial use, as will be the
triangular-shaped piece on the south corner
of Niles and Jefferson. Mr. Matthews
doesn't believe there is much demand for
commercial buildings in the area at this time.
He will landscape the lot to the south as a
23
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(1) continued...
piazza or a park. There will be plenty of
extra parking on the site. Currently people
park haphazardly on the lot. He believes he
can get 121 parking spaces on the site by
striping it. The development will be called
the River Race Townhomes.
Mr. Varner asked Mr. Relos what the
disposition offering price was. Mr. Relos
responded that it was $339,500. Mr. Varner
did not like the sale price to Mr. Matthews of
$10. He expects Mr. Matthews will find
there is a good market for condos at that site
and they may even sell with more amenities
and for more than $200,000, similar to how
the market was for the East Bank
Townhomes. Mr. Matthews said the East
Bank Townhomes are twice as large as these
will be. His intent with these is to see if
there is a market for the $200,000 price range
condos. That prorates to a $900 per month
payment which is about the monthly payment
that can be made on a $40,000 a year salary.
An average salary. The downtown is
physically attractive, but it needs a lot more
people on the streets to become vibrant.
Everyone wants to see a grocery store
downtown. The only way that will happen is
for a lot of moderate income people to want
to live downtown. We're never going to hit
that density level to attract a grocery store
otherwise. In his mine, this is an experiment.
Mr. Varner conveyed his concern that with a
purchase price of$300,0004400,000 per unit
and ten units, the city would be subsidizing
each unit at $40,000. The city can't afford
24
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(1) continued...
that kind of subsidy. It needs the cash return
to be able to invest somewhere else. It's
difficult to understand how we could buy
something in January for $400,000 and sell it
for $10.
Mr. Matthews noted that at the East Bank
Townhomes site he spent $200,000 preparing
the site. He hauled in 1,500 truckloads of fill
and a built a $100,000 wall. Instead he could
have paid for the land, got a tax abatement
and then had the Commission raise the site so
it was buildable. That is the harder way to do
it. Then, when the wall ended up getting a
lot more expensive than he expected, it was
his responsibility.
Mr. Gibney added that it was very important
that Mr. Matthews spoke to his cash
investment in the Rink site. The city could
have done a very convoluted Board of Public
Works process where we might have sold
Mr. Matthews the land at an appraised price
and then the city would make all the
improvements. The Rink site, no matter
what it was appraised for, was sitting empty
for ten years. It could be appraised at any
dollar amount, but if nobody wants to buy it,
it has no value. We purchased the Niles
Avenue site in January as part of our
negotiations with 1st Source Bank. That
property has been on the market for five to
six years while 1st Source Bank owned it and
there was not one offer on that property. The
city was pressured to buy that as part of its
negotiations to keep 1st Source in the
downtown. A third site, the Wharf site, one
25
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(1) continued...
of the most desirable sites in the Eastbank,
facing the river, facing Century Center, has
been on the market for more than a decade.
The city plan, the Eastbank village plan and
the Howard Park neighborhood plan all call
for housing in these downtown areas. The
best thing we can do is to get housing put
there. So, we can hold this land for its
offering price, or we can lower the price and
get people living downtown, working
downtown and we can collect property taxes
again on these properties. Mr. Gibney noted
that The Emporium did not want to purchase
that Niles/Jefferson site. It was their
customers who were using it for parking.
The property is also extremely unsightly.
We are willing to prime the pump and get the
kind of quality housing that Mr. Matthews
has proposed to bring people downtown.
Ms. King asked what the timeline is for this
project. Mr. Matthews answered that his
Contract for Sale of Land stipulates that he
construct at least three units beginning in the
fall. Then he must have the remaining seven
of units built within three years. Even if
there is no market, Mr. Matthews is still
obligated to build ten townhomes and to get
them sold.
Mr. Alford made a motion to accept the COMMISSION ACCEPTED THE DEVELOPMENT
development proposal from David Matthews PROPOSAL FROM DAVID MATTHEWS FOR THE
for the Northeast corner Jefferson&Niles. NORTHEAST CORNER OF JEFFERSON&NILES AND
DIRECTED STAFF TO PREPARE THE CONTRACT
Ms. King seconded the motion. The motion FOR SALE OF LAND
passed on a vote of three in favor. Mr.
Varner was opposed.
26
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(2) Commercial Purchase Agreement with
Mavcon Properties of Kalamazoo,
Michigan (LaSalle Hotel).
Mr. Relos noted that staff has over the years
worked with many interested parties, from
various parts of the country, for the
rehabilitation of the Hotel La Salle (Hotel).
The Hotel has sat empty for approximately
10 years, and has been maintained by the
Commission in the hopes that one day the
right group would step forward, that has both
the ability and capacity to return the Hotel to
a productive use and asset to the downtown.
We feel that developer has emerged.
Mavcon Properties, of Kalamazoo, Michigan,
would like to enter into a Purchase
Agreement with the Commission to acquire
the Hotel. Mavcon has experience in
redeveloping urban properties, with its latest
project being the Metropolitan Center in
downtown Kalamazoo, an $11.3 million
historic rehab of four connected commercial
buildings that were constructed in the late
1800's.
Prior to closing this transaction, much due
diligence must be completed. Mavcon, at its
own expense, will hire architectural,
engineering, and environmental consultants
to study and plan for the eventual
rehabilitation of the Hotel into 45 — 65
market rate apartments, with commercial
space likely on the 1st and 2nd floors. In
addition, and again at their own expense,
they will put together a funding package that
will include both Historic and New Market
Tax Credits.
27
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(2) continued...
Highlights of the purchase agreement
include:
• $5,000 purchase price, to be paid at
closing
• $2,000 deposit within 3 days of the
acceptance of this agreement
• 180 day inspection period
• 180 day inspection period extension, with
an additional $2,000 deposit
• Closing within 90 days after the
inspection period or the extension thereof
• 90 day closing extension, with additional
$2,000 deposit.
Because of the complicated nature of putting
together the Historic and New Market Tax
Credit package, and the extensive
architectural, engineering, and environmental
studies that need to be completed, staff feels
the above schedule is acceptable and
necessary.
Ms. King asked what will occur after the
closing, if the Commission approves the
proposal. She noted there doesn't seem to be
a timetable for completion, or an opportunity
to buy it back if Mavcon does not move
forward. She asked if the Commission will
have any recourse?
Mr. Meteiver responded that the Commission
has a lengthy period prior to closing (a 180-
day initial period, then 90 days, and another
90 days). Mavcon will be, potentially, a year
and a half into the project by then. The
expense they will incur to develop the
28
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(2) continued...
financial package that has to go with this, he
expects, will be in excess of$100,000. They
will have a very significant investment in the
project by the time it closes. If they get to
that point and determine the project can't go
forward, then the project won't close. If the
financial package is ready and Mavcon is
ready to go forward, then the project will
close. The investment they will have made
by that time will be a strong incentive to
complete the project.
Ms. King said that she understands what Mr.
Meteiver said, but still feels the Hotel will be
totally out of the Commission's control after
closing. She noted that deals fall apart.
She'd like to make sure that Mavcon would
not get into the position of owning the
property for $5,000 and then not moving
forward on the project.
Mr. Alford said that he shared Ms. King's
concern about the Purchase Agreement not
providing the Commission recourse. If
Mavcon has invested a large amount of
money doing its due diligence, it will not be
willing to sell the hotel back to the
Commission for $5,000. They will want a lot
more.
Mr. Relos asked if he understood Ms. King's
concern correctly, that there needs to be a
timeline for project completion after closing
or the Commission has recourse, such as
reclaiming the building. Ms. King confirmed
his understanding. Mr. Relos agreed that that
should be a concern and asked counsel for
29
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(2) continued...
Mavcon to respond.
Mr. Dally said they've not put out a lot of
proposals, hoping they'll get one or two
accepted. They've already spent countless
hours analyzing whether they want to
participate in redeveloping this project in
South Bend. The more time they've spent,
the more excited they become. They like
South Bend as a city and believe it's a place
they'd like to invest their money. As a
company, you wouldn't have lots of this type
of project going on at one time. You have
one or two, and you give them your full
concentration. Mavcon intends to make
monthly reports to staff on the progress of its
analysis. The city will know if, and as soon
as, Mavcon begins to have any doubt about
its interest in the project. By the time we
close on the property, we'll know we can and
will complete it.
Mr. Dally showed some slides of other
projects Mavcon has done. Metropolitan
Center has had a lot of different challenges.
They put in a lot of unique features on that
property, ones that most developers would
see as roadblocks. Mavcon believes there's
always a solution, if you've got a team that
works with you. Many of the things needed
in renovation are not available to buy.
Mavcon manufactures those things itself. It
is a problem solving company.
Mr. Dally also said that all of their projects
have a lot of pride; Mavcon intends to own
them for 20 years. They intend to make the
30
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(2) continued...
LaSalle Hotel a LEED certified project.
Mr. Dally noted that rehabilitation of the
LaSalle Hotel is not a project for amateurs.
The interior will be selectively dismantled
and reassembled to Historic Preservation
guidelines.
To Nancy's question, "Will the project get
off the ground?" Mr. Dally responded that
Mavcon does its thorough research early and
tries to avoid finding "skeletons in the closet"
late in the game. They are not on a"fishing
expedition." They have done a lot of research
into the building already, which has brought
them to the level of confidence to be before
the Commission today with this proposal.
They are confident they can do the project,
but need the purchase agreement signed to
continue to move forward.
Mr. Sielatycki spoke to the company's
experience. They have five attorneys
between in-house attorneys and its
consultant, Varnum, plus four accountants.
The team they've assembled has been doing
New Market Tax Credit (NMTC) deals since
there were NMTC deals to be done. The
NMTC program was developed by the
federal government in 2000. The first deals
didn't start happening until about 2003.
Mavcon's team has been involved in between
fifteen and twenty NMTC deals of this type
and of those, seven or eight include the
historic preservation element.
Mr. Sielatycki described the project as
31
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(2) continued...
mixed use historic redevelopment with
commercial space on the first two floors.
Some of those things are the regulatory
requirements of the NMTC model. The
balance will be market rate apartments (45-
65 apartments).
Mr. Sielatycki said that the total cost for the
project is $15M. That is not sustainable by
private equity investment only. That is why
they will be looking at the NMTC program
and historic tax credits (HTC), and then local
TIF and tax abatement.
Ms. King asked what kind of use the
Metropolitan Center is. Mr. Sielatycki
responded that it is currently under
construction, but will also be mixed use. It
has 24 apartments on four floors, 20 of which
will be market rate for income qualified
residents, and 10,000 sq. ft. of retail space.
Ms. King asked now many of the projects
they used the NMTC for have been for
apartments. Mr. Sielatycki responded that
all of the seven projects that used both
NMTC and HTC included residential units.
Mr. Varner asked what portion of the
financing will be NMTC, HTC and TIF
funds.
Mr. Agostinelli responded that they create a
financial pro forma, estimating how much it
is going to cost to do the selective
demolition, the cost to reinforce the building,
then how much for the development itself.
32
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(2) continued...
Then they work backwards from there: what
financial incentives are available, what
federal, state and local programs are
available that could help fill that gap. That's
the approach they take. And, frankly, that's
why the purchase price is $5,000, because the
overall pro forma couldn't justify a bigger
purchase price. The NMTC program will
cover approximately 22-23%; the amount
HTC will provide depends on what it will be
spent it on. Mavcon doesn't really have a
feel for that. Mavcon expects the man hours
they put in prior to construction will be its
primary investment in the project,
particularly because the NMTC take so much
work. They'll spend in excess of$500,000
on the NMTC application, including the
regulatory piece, the financial modeling, and
the document preparation. With architectural
and environmental expenses as well, he
expects Mavcon's expenses prior to closing
will be in excess of$1M.
Stephanie: When looking at the purchase
agreement, #8 and #9, the local incentives to
Mavcon. Will Mavcon work with our local
organized labor, stimulating our local
economy? Mr. Sielatycki responded that they
always use local contractors. They will use
South Bend contractors.
Mr. Varner asked Mr. Gibney what his
expectations were for the city's contribution
to the project: whether it would be only the
building at $5,000 or is more expected. Mr.
Gibney responded that there has not yet been
anything else requested. As they layer their
33
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(2) continued...
financing, there could be a request for a
parking deck(which could also be used for
the Morris Performing Arts Center). Mr.
Gibney stressed that the $5,000 sales price is
a small incentive for a $15M project. As a
comparison, when South Bend Heritage
Foundation bought the Robertson's Building
to do a $12M project, they bought it for $1.
South Bend Heritage used Low Income Tax
Credits for that project.
Mr. Gibney also stressed that staff has been
working with Mavcon for about six months.
Unlike all the other developers who have
expressed interest in the building, Mavcon
has kept staff informed of what they are
doing. Mavcon has taken the initiative to
keep us informed, instead of staff needing to
take the initiative to follow up.
Mr. Dally noted that as soon as the
Commercial Purchase Agreement is signed,
they will begin to complete their due
diligence and determine what their funding
gap will be. To be sure, that site has a
parking problem, so they will definitely need
to solve that.
Mr. Gibney noted that every developer who
has looked at the hotel has mentioned the
parking problem. There is no way for the
city to get this site redeveloped without
funding a parking deck.
Mr. Varner made a motion to approve the, COMMISSION APPROVED COMMERCIAL
Commercial Purchase Agreement with PURCHASE AGREEMENT WITH MAVCON
Mavcon Properties of Kalamazoo, Michigan. PROPERTIES OF KALAMAZOO,MICHIGAN
(LASALLE HOTEL .
34
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(2) continued...
Ms. King seconded the motion. The motion
passed with three votes in favor. Mr. Alford
was opposed. (LaSalle Hotel).
(3) Proposal from Radiant Networks to
investigate the feasibility of a wireless
network downtown.
Mr. Inks noted that currently there are a few
wireless hotspots in the downtown, but we
would like to investigate the possibility of
making the whole downtown a hotspot.
Below is the Executive Summary of the
proposal from Radiant Networks to
investigate the feasibility of providing a
wireless canopy for the downtown.
Executive Summary
The City of South Bend has requested that
Radiant Networks engage in providing
Survey and Installation Resources to provide
for Wireless "Last Mile" Resources as well
as "Wireless Public Access" to the Metronet
for multiple locations as defined by the
Metronet. An RF Survey will be performed
by Radiant Networks throughout all outlined
areas. We will perform Spectrum Analysis
and provide our recommendations using
Cisco Best Practices to engineer the Wireless
Network to provide maximum coverage
throughout outlined areas. We will provide a
full reporting based upon the findings of the
RF Survey performed and the best approach
to deploy the Wireless Network. Radiant
Networks will provide a quotation for
services to install the WLAN and associated
networking equipment. Radiant Networks
35
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(3) continued...
will also provide a line item quote for
Consulting Services to provide for the design
of the overall Architecture of the Wireless
Network and it's interconnections to the
Metronet and the Metronet's
interconnections to the internet.
The City is looking at a broader effort to
investigate other parts of the City for a
possible wireless canopy, and this project is
being spear headed by Gary Gilot, Director
of Public Works. The downtown portion of
the feasibility, to be funded by TIF, would
cost $18,000 plus expenses.
Staff recommends $22,000 be approved to
cover the full cost of this study.
Mr. Varner asked whether the Metronet will
be charging a fee for access and whether this
canopy will require the city to pay a fee to
Metronet.
Mr. Littrell noted that a"hotspot" would be a
misnomer for what's being proposed. The
Commission has supported many Metronet
installation costs: provided facilities,
extended conduit around the city. It's very
expensive to connect to the Metronet. Large,
industrial/commercial/institutional/
educational users who have Metronet
connection are physically connected with a
12-cable fiber (lateral). Construction of that
type costs about $10,000 for each facility.
There are further costs for the company to
have its own internal wiring for its
connections. The proposal that Radiant has
36
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(3) continued...
made is to see if we can make those
connections by radio instead of with fiber
cables. The operating costs would be much
higher, but the initial installation to connect
with the Metronet would be relatively
inexpensive. So this service would be for
smaller users who could connect without that
$10,000 initial cost. They'd have a
subscription fee, then a monthly service fee.
It would be a service for more than just the
casual gamer or individual e-mail user in a
downtown apartment. It is for small
businesses that need the broader bandwidth,
but cannot afford the initial outlay of$l OK
for the Metronet. We would hire Radiant to
do a radio atmosphere/environment
assessment to see how many radios would be
needed to give adequate coverage to the large
downtown area and at what expense that
might be.
Mr. Varner asked if the Metronet will then
look to the Redevelopment Commission to
provide the funding for installing the radios.
Mr. Littrell responded that that is not
expected. The Metronet was looking for a
location where they might try such a system
out. Gary Gilot, who is on the Metronet
Board, suggested downtown South Bend as
the initial place where this service could be
offered. So, rather than provide that benefit
to one of the industrial parks or office parks
we're asking the Commission to pay for the
study to see what it would take. Downtown
would then have this new service that will be
an advantage over the others areas that have
Metronet access.
37
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(3) continued...
Mr. Varner wanted to note for the record that
the Metronet operates as a non-profit agency.
They are heavily subsidized by the city. At
the same time they are in competition with
companies that are paying taxes and
supporting the city.
Mr. Littrell responded that the Metronet is a
dark fiber provider. It is a local company.
The users of the Metronet select whatever
internet service provider would be able to
give them the best service cross-country.
Mr. Varner said he objects that the city is cut
out of the deal completely. He feels the
Metronet needs to start paying something in
the way of a fee to the city, as does AT&T,
as do other vendors. Instead, we continue to
subsidize it. If they are going to be a viable
operation and compete with the other
companies that are paying taxes, they need to
start paying the city instead of constantly
requesting more money. He thinks this radio
access is a nice idea, but some of those
revenues that flow to the Metronet need to
come to the city. He doesn't want the next
request to be that the Commission buy
$200,000 4300,000 worth of radios. If the
Metronet is going to compete with the
regular vendors, they need to pay like the
regular vendors do.
Mr. Littrell responded that the Metronet is
not competing with the regular vendors.
Users of the Metronet still need those other
providers for cross-country access. Metronet
is a link to that access.
38
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(3) continued...
Mr. Varner said he would like more
information on this.
Mr. Inks tried to clarify the issue. This
proposal from Radiant is not for the
Metronet. This is to the City of South Bend.
We are considering an eventual improvement
in the downtown that makes the downtown a
more appealing place to do business and
hopefully increase the number of businesses
we have in the downtown. The Metronet
allows us to take this approach to addressing
the issue. So, in essence, we're saying that
the Metronet is an asset that allows us to do
something that, without the Metronet,
wouldn't be possible. With the radios we
could tie into the Metronet and accomplish
what we want. Without the Metronet, this
approach doesn't work. So, the Metronet
becomes an asset we're taking advantage of
in the downtown. He isn't sure if there is a
fee arrangement. He hasn't heard of one yet.
Mr. Varner said that there is. If you want to
get on the AT&T site through the Metronet,
AT&T has to buy fiber access from
Metronet. It is the same with any of the other
providers. And they are all paying taxes.
Metronet does not. He thinks we're allowing
some unfair competition for people that are
paying taxes. If one of these large providers
(Comcast or AT&T) decided to go
somewhere else because South Bend is
undercutting them, it wouldn't surprise him.
Mr. Leone said that he thinks that not only is
there an advantage to local business, but also
39
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(3) continued...
to local government as well, because the city,
through its use of fiber, will also be able to
use this wireless canopy as well.
Mr. Littrell said that the benefit he sees it is
that the city would not have to dig up
sidewalk for each business that wants access
to the Metronet. The access could be
wireless.
Mr. Varner sees that advantage. But if the
Metronet is going to use that to sell
subscriptions to compete with others...that's
where he has an issue. And if this is step one
of a request for"umpteen hundred thousand
dollars" in addition to what the city has
already spent... Unless Metronet is prepared
to start paying some sort of fee to the city.
Mr. Littrell said that Mr. Gilot said the deal is
that, for Metronet to do the radio system in
downtown South Bend first, the city would
cover the cost of this feasibility study.
Ms. Spivey asked if the radio canopy would
offer a hotspot to anyone who has a laptop in
a downtown business.
Mr. Litrell said it is not intended for laptop
users. It's much more capable than you
would need for a laptop computer. It will be
an expensive connection. It will be more
than you would want to pay, or that a
business would give for free to its customers.
It's intended for more high powered
telecommunications than is necessary to
operate devices that we carry around in our
pockets.
40
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(3) continued...
Mr. Varner asked if they would then pay a
subscription fee for that Metronet access. Mr.
Littrell responded that, yes, businesses would
pay a monthly fee.
Item 6.C.(3) died for lack of a motion. ITEM 6.C.(3)DIED FOR LACK OF A MOTION.
(4) Resolution No. 2895 approving the fair
market value of property in the South
Bend Central Development Area (502 W.
Western Ave., former Harmon Glass)
Mr. Sikora noted that this revised Resolution
No. 2895 sets the offering price for the
former Harmon Glass property on Western
Ave at $45,000, the average of two
independent appraisals. This action begins
the disposition process for the former
Harmon Glass property at 502 Western Ave.
Staff recommends approval.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2895
Mr. Alford and unanimously carried, the APPROVING THE FAIR MARKET VALUE OF
Commission approved Resolution No. 2895 PROPERTY IN THE SOUTH BEND CENTRAL
DEVELOPMENT AREA(502 W.WESTERN AVE.,
approving the fair market value of property FORMER HARMON GLASS)
in the South Bend Central Development Area
(502 W. Western Ave., former Harmon
Glass)
(5) Bid Specifications and Design
Considerations for 502 W. Western
Avenue.
Mr. Sikora noted that the Bid Specifications
include a requirement that the user must
include a basic reuse plan for the site and a
project timeline detailing aspects of the site
41
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(5) continued...
redevelopment and site improvements.
During the review process, emphasis will be
placed on compatibility with the goals and
objectives of the Coveleski Park
Neighborhood as well as the Development
Plan for the South Bend Central
Development Area. Additional consideration
will be given to proposals that incorporate
community outreach, educational
programming or technical instruction as part
of a reuse plan.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED BID SPECIFICATIONS
Mr. Alford and unanimously carried, the AND DESIGN CONSIDERATIONS FOR 502 W.
Commission approved the Bid Specifications WESTERN AVENUE
and Design Considerations for 502 W.
Western Avenue.
(6) Authorization to publish Notice of
Intended Disposition of Property with
publication dates of June 24 and July 1,
2011 and receipt of bids at 10:00 a.m.,
July 12, 2011. (502 W. Western Ave.)
Upon a motion by Ms. King, seconded by COMMISSION AUTHORIZED PUBLICATION OF THE
Mr. Alford and unanimously carried, the NOTICE OF INTENDED DISPOSITION OF
Commission authorized publication of the PROPERTY WITH PUBLICATION DATES OF JUNE
24 AND JULY 1,2011 AND RECEIPT OF BIDS AT
Notice of Intended Disposition of Property 10:00 A.M.,JULY 12,2011.(502 W.WESTERN
with publication dates of June 24 and July 1, AVE.)
2011 and receipt of bids at 10:00 a.m.,
July 12, 2011. (502 W. Western Ave.)
D. Airport Economic Development Area
(2) Resolution No. 2883 related to acquisition
of property in the Airport Economic
Development Area (1518 S. Chapin St.)
42
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
D. Airport Economic Development Area
(2) continued...
Mr. Relos noted that 1513 Chapin, 1518
Chapin and 1518 Scott Street were all added
to the Airport Economic Development Area
Acquisition List by Resolution No. 2668 on
May 21, 2010. 1518 S. Chapin St. is a two
story, three bedroom single family residence.
Resolution No. 2883 sets the acquisition
value of the property at $25,000, the average
value as determined by two independent
appraisals. Staff requests approval of
Resolution No. 2883.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2883
Mr. Alford and unanimously carried, the RELATED TO ACQUISITION OF PROPERTY IN THE
Commission approved Resolution No. 2883 AIRPORT ECONOMIC DEVELOPMENT AREA
related to acquisition of property in the (1518 S.CHAPIlV ST.)
Airport Economic Development Area (1518
S. Chapin St.)
(3) Resolution No. 2884 related to acquisition
of property in the Airport Economic
Development Area (1513 S. Chapin St.)
Mr. Relos noted that 1513 S. Chapin St. is a
two story, four bedroom single family
residence. Resolution No. 2884 sets the
acquisition value of the property at $29,500,
the average value as determined by two
independent appraisals. Staff requests
approval of Resolution No. 2884.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2884
Mr. Alford and unanimously carried, the RELATED TO ACQUISITION OF PROPERTY IN THE
Commission approved Resolution No. 2884 AIRPORT ECONOMIC DEVELOPMENT AREA
related to acquisition of property in the (1513 S.CHAPIlV ST.)
Airport Economic Development Area (1513
S. Chapin St.)
43
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
D. Airport Economic Development Area
(4) Resolution No. 2885 related to acquisition
of property in the Airport Economic
Development Area (1518 S. Scott St.)
Mr. Relos noted that 1518 S. Scott St. is a
two story, four bedroom single family
residence. Resolution No. 2885 sets the
acquisition value of the property at $12,750,
the average value as determined by two
independent appraisals. Staff requests
approval of Resolution No. 2885.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED SEPARATELY
Mr. Alford and unanimously carried, the RESOLUTIONS 2883,2884,AND 2885 ALL
Commission approved separately Resolutions ACQUISITION PROPERTIES,PERSONAL
PROPERTIES(1518 AND 1513 S.CHAPIN AND
2883, 2884, and 2885 all acquisition 1518 S. SCOTT)IN THE AIRPORT ECONOMIC
properties, personal properties (1518 and DEVELOPMENT AREA.
1513 S. Chapin and 1518 S. Scott)in the
Airport Economic Development Area.
(5) Administrative Settlement for 1518 S.
Scott St.
Mr. Relos noted that Resolution No. 2885 set
the acquisition offering price for 1518 S.
Scott at $12,750. The property owner has
expressed her interest in selling this property,
which she grew up in, but feels that based on
the size of the house, and the fact that it has a
two car garage with shop area, the value
placed on it should be higher. The assessed
value of this property is $46,900. The owner
has agreed to accept $26,000.
Mr. Relos put this value in context by noting
that prices paid for the surrounding four
houses were from $25,500 - $35,000, three of
which had smaller square footage and no
garage. The average value paid for these
44
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
D. Airport Economic Development Area
(5) continued...
four houses is $29,500.
The owner of 1518 S. Scott does not
currently live in the house, but if she did,
acquisition and relocation costs would be
approximately $25,000.
In light of the above considerations, staff
feels the counter offer of$26,000 is
reasonable and recommends approval.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED THE ADMINISTRATIVE
Mr. Alford and unanimously carried, the SETTLEMENT FOR 1518 S. SCOTT ST.
Commission approved the Administrative
Settlement for 1518 S. Scott St.
(6) Administrative Settlement for 1525 S.
Kemble Avenue.
Mr. Relos noted that Resolution No. 2718 set
the acquisition offering price at $29,000 for
1525 S. Kemble Ave. The owner of this
property died without a will, and staff has
been working with her heirs since July of last
year to work through the process of setting
up an estate so this property could be
acquired.
Since the property owner's death, one son
has lived in the house, making payments on
the mortgage, paying the taxes, and
maintaining the property. According to the
attorney for the estate, this son has a pending
petition to receive the first $80,000 of the
estate's proceeds (primarily this property).
Under the relocation act, this son is eligible6. NEW
45
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
BUSINESS (CONT.)
D. Airport Economic Development Area
(6) continued...
for relocation benefits. Following the Act,
the estimated acquisition and relocation costs
associated with this property would be
$47,000. Instead of being relocated under
the Act, the son would prefer to receive a
lump sum payment of$50,000. This
payment would be made to the estate.
The approximate mortgage payoff is
$11,000. The remaining $39,000 would be
used as a down payment by the son and his
wife toward a new home.
Staff feels the total acquisition cost of
$50,000 is reasonable for this property, and
requests your approval of the administrative
settlement for 1525 S. Kemble Ave.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED SEPARATELY
Mr. Alford and unanimously carried, the ADMINISTRATIVE SETTLEMENT FOR PROPERTIES
Commission approved separately AT 1518 S. SCOTT ST.AND 1525 S.KEMBLE
AVENUE.
Administrative Settlement for properties at
1518 S. Scott St. and 1525 S. Kemble
Avenue.
(7) Resolution No. 2888 approving and
authorizing the execution of an Addendum
to the Master Agency Agreement (Ignition
Park South Expansion Area Demolitions).
Mr. Relos noted that to date, there have been
two emergency demolitions along this area of
Indiana Avenue and one demo by Code
Enforcement. Staff would like to proceed
with demolishing more of the properties the
Commission has acquired over the last year.
46
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
D. Airport Economic Development Area
(7) continued...
This Addendum covers twenty-four
structures in areas where the Commission
owns properties that are not adjacent to non-
owned structures, thereby making it easier
for asbestos abatement and to demolish and
clear the properties. Another addendum will
be presented for additional demolitions when
key properties are acquired to allow for
easier abatement and property clearance.
It is estimated that the total cost of this
project will be $300,000, which includes
asbestos abatement prior to demolition, plus
demolition and property clearance. Staff
requests Commission approval of this
project, in a not-to-exceed amount of
$300,000.
Upon a motion by Mr. Alford, seconded by COMMISSION APPROVED RESOLUTION No.2888
Mr. Varner and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION
Commission approved Resolution No. 2888 OF AN ADDENDUM TO THE MASTER AGENCY
AGREEMENT(IGNITION PARK SOUTH
approving and authorizing the execution of EXPANSION AREA DEMOLITIONS).
an Addendum to the Master Agency
Agreement (Ignition Park South Expansion
Area Demolitions).
(8) Resolution No. 2891 approving and
authorizing the execution of an Addendum
to the Master Agency Agreement (Adams
Road Estates Land Purchase)
Mr. Schalliol noted that staff intends to
extend Olive Road from Brick to Adams. A
right-of-way is needed through Adams Road
Estates, owned by Steve Cooreman. The
right-of-way will be 100' wide and roughly
2700' in length. The total purchase price for
47
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
D. Airport Economic Development Area
(8) continued...
the right-of-way is $271,073.50 including all
closing costs. The purchase will be handled
through an Addendum to the Agency
Agreement we have with the Board of Public
Works. Staff recommends approval of the
Addendum.
Mr. Varner questioned the timeline for
completing the road. Mr. Schalliol answered
that the city is acquiring the right-of-way and
completing constructions plans up to 60% so
that when an interchange is built at Adams
Road, we'll have the land corridor necessary.
Mr. Varner asked what if the interchange is
never built. Mr. Schalliol responded that
won't extend Olive Rd if the interchange is
never built.
Mr. Inks said that construction of the
interchange is dependent on development.
With some major projects there is enough
lead time to get state involvement for funding
for the interchange. That's where the state is
now. The Indiana Economic Development
Corporation has looked at this, expressed
interest, but said until we have a project with
significant investment and jobs, they're not
going to put any money in. So, at this point,
we're waiting for that significant project.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2891
Mr. Alford and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION
Commission approved Resolution No. 2891 OF AN ADDENDUM TO THE MASTER AGENCY
AGREEMENT(ADAMS ROAD ESTATES LAND
approving and authorizing the execution of PURCHASE)
an Addendum to the Master Agency
Agreement (Adams Road Estates Land
Purchase)
48
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
D. Airport Economic Development Area
(9) Memorandum of Understanding with
Brick Road LLC (Hutsfield Square
Subdivision)
Mr. Schalliol noted that the purpose of the
Memorandum of Understanding is to
establish a binding agreement concerning
commitments of the Brick Road LLC and the
Commission. Brick Road LLC will be
donating to the City of South Bend all land
necessary to construct the Mayflower sewer
project as well as constructing Mayflower
Boulevard from Cleveland to Brick Road.
The property donation equates to
approximately 6 acres of the total 43.3 acre
Hutsfield Square subdivision. In exchange
for the land donation, the Commission will
construct Mayflower Boulevard from
Cleveland to Brick and construct all related
infrastructure improvements including sewer,
storm retention, walks, lighting and a signal
at Cleveland and Mayflower. The city will
also use a portion of the western side of the
site along Mayflower Road to construct a
new regional trunk sewer line. Both of these
projects are part of a Master Agency
Addendum that is before the Commission as
Resolution No. 2893. In the event that the
Commission determines to not do the project,
the land would revert back to Brick Road
LLC by December 31, 2011.
Hutsfiled Square subdivision is proposed to
be a mixed use development of housing and
retail located on Cleveland Road. The
developer is working with a senior housing
project developer to use a third of the site for
a housing village that will contain a variety
of housing options for a senior population.
49
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
D. Airport Economic Development Area
(9) continued...
The site is also laid out with room for a large
"big box" store and smaller outlot
development. Coupled with a proposed
mixed use commercial development south of
the site on the south side of Cleveland Road,
this project will create a strong compliment
to the other developments happening around
Cleveland Road in the AEDA.
Staff requests approval of Memorandum of
Understanding by and between Brick Road
LLC and the City of South Bend
Redevelopment Commission to advance this
project.
Mr. Varner asked what Hutsfield's
commitment is. Mr. Schalliol responded that
Hutsfield will start the residential component
this fall; they have interested retail tenants
that they hope to soon secure contracts with,
and they are dedicating the land.
Upon a motion by Mr. Alford, seconded by COMMISSION APPROVED THE MEMORANDUM OF
Mr. Varner and unanimously carried, the UNDERSTANDING WITH BRICK ROAD LLC
Commission approved the Memorandum of (HUTSFIELD SQUARE SUBDIVISION)
Understanding with Brick Road LLC
(Hutsfield Square Subdivision)
(10) Resolution No. 2893 approving and
authorizing the execution of an Addendum
to the Master Agency Agreement
(Mayflower[Hutsfield Square
Infrastructure Project)
Mr. Schalliol noted that the Mayflower/
Hutsfield Square Infrastructure Project
consists of two projects. The first is the
50
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
D. Airport Economic Development Area
(10) continued...
Mayflower Boulevard Construction with a
contract amount of$2,499,736.21. The work
will include construction of a new roadway,
all related drainage and utility work, street
lights and pedestrian trail, and a new traffic
signal at Mayflower Boulevard and
Cleveland Road.
The second project is the Mayflower sewer
construction with a contract amount of
$1,868,743.50. That work will include the
construction of a new sewer force line that
will intercept sewage at the intersection of
Mayflower and Brick and force the material
to the Blackthorn Lift Station located on
Nimtz Parkway. There will be additional
sewer network configuration as part of this
project that will free up capacity in the
existing network on the northwest side of
town.
The Addendum includes a copy of a
professional services proposal Abonmarche
to provide Project Oversight/Inspection for a
fee of$86,740.00. The city will assign an
inspector to this project but Abonmarche will
serve as an additional inspector and be in the
field to deal with project construction issues.
Staff requests approval of Resolution
No. 2893.
Upon a motion by Mr. Alford, seconded by COMMISSION APPROVED RESOLUTION No.2893
Mr. Varner and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION
Commission approved Resolution No. 2893 OF AN ADDENDUM TO THE MASTER AGENCY
AGREEMENT(MAYFLOWER/HUTSFIELD SQUARE
approving and authorizing the execution of INFRASTRUCTURE PROJECT)
an Addendum to the Master Agency
Agreement (Mayflower/Hutsfield Square
Infrastructure Project)
51
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
D. Airport Economic Development Area
(11) Resolution No. 2897 approving the Fair
Market Value of Property in the Airport
Economic Development Area (604 S. Scott
Street, former Millennium Environmental,
Inc.)
Mr. Sikora noted that the city picked up this
property at 604 S. Scott St. at tax sale. We
were able to use some environmental
remediation funds from IDEM to do
environmental cleanup at the property. Now
we would like to put it on the market.
Resolution No. 2897 sets the fair market
value at $42,500, the average of two
independent appraisals. The property is 2.6
acres.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2897
Mr. Alford and unanimously carried, the APPROVING THE FAIR MARKET VALUE OF
Commission approved Resolution No. 2897 PROPERTY IN THE AIRPORT ECONOMIC
DEVELOPMENT AREA(604 S. SCOTT STREET,
approving the Fair Market Value of Property FORMER MILLENNIUM ENVIRONMENTAL,INC.
in the Airport Economic Development Area
(604 S. Scott Street, former Millennium
Environmental, Inc.)
(12) Bid Specifications and Design
Considerations for 604 S. Scott Street
Mr. Sikora noted that the Bid Specifications
and Design Considerations include that
proposals must include a basic reuse plan for
the site and a project timeline. Projects must
be compatible with the goals and objectives
of the Development Plan for the Airport
Economic Development Area.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED THE BID
Mr. Alford and unanimously carried, the SPECIFICATIONS AND DESIGN CONSIDERATIONS
Commission approved the Bid Specifications FOR 604 S. SCOTT STREET
52
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
D. Airport Economic Development Area
(12) continued...
and Design Considerations for 604 S. Scott
Street.
(13) Authorization to publish Notice of
Intended Disposition of Property with
publication dates of June 24 and July 1,
2011 and receipt of bids at 10:00 a.m.,
July 12, 2011. (604 S. Scott Street)
Upon a motion by Mr. Varner, seconded by COMMISSION AUTHORIZED PUBLICATION OF THE
Mr. Alford and unanimously carried, the NOTICE OF INTENDED DISPOSITION OF
Commission authorized publication of the PROPERTY WITH PUBLICATION DATES OF JUNE
24 AND JULY 1,2011 AND RECEIPT OF BIDS AT
Notice of Intended Disposition of Property 10:00 A.M.,JULY 12,2011.(604 S. SCOTT
with publication dates of June 24 and July 1, STREET)
2011 and receipt of bids at 10:00 a.m.,
July 12, 2011. (604 S. Scott Street)
(14) Resolution No. 2898 approving and
authorizing the execution of a Master
Agency Agreement by and between the
South Bend Redevelopment Commission
and the City of South Bend, Indiana,
Board of Park Commissioners relating to
2011 projects.
Mr. Schalliol noted that a Master Agency
Agreement is needed with the Board of Park
Commissioners to do the work we've
anticipated at Voorde Park. Resolution
No. 2898 approves the Master Agency
Agreement. The next agenda item approves
the first Addendum to the master agreement
assigning that project to the master
agreement.
53
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
D. Airport Economic Development Area
(14) continued...
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2898
Mr. Alford and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION
Commission approved Resolution No. 2898 OF AMASTER AGENCY AGREEMENT BY AND
BETWEEN THE SOUTH BEND REDEVELOPMENT
approving and authorizing the execution of a COMMISSION AND THE CITY OF SOUTH BEND,
Master Agency Agreement by and between INDIANA,BOARD OF PARK COMMISSIONERS
the South Bend Redevelopment Commission RELATING To 2011 PROJECTS
and the City of South Bend, Indiana, Board
of Park Commissioners relating to 2011
projects.
(15) Resolution No. 2894 approving and
authorizing the execution of an Addendum
to the Master Agency Agreement (Voorde
Park Planning and Construction)
Mr. Schalliol noted that the Commission
previously approved Addendums to the
Master Agency Agreement to contract with
Lehman& Lehman for initial site planning,
and then a second contract to do survey work
and prepare and complete a rezoning for a
parcel of land adjacent to Voorde Park to be
transferred to Hoosier Tank.
This Addendum is for a contract with
Lehman& Lehman to finalize the planning
work for the entire property and prepare
construction and bid documentation.
Lehman& Lehman has submitted a proposal
in the amount of$27,000. Construction of
the park improvements will cost $350,000.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2894
Mr. Alford and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION
Commission approved Resolution No. 2894 OF AN ADDENDUM TO THE MASTER AGENCY
AGREEMENT(VOORDE PARK PLANNING AND
approving and authorizing the execution of CONSTRUCTION)
an Addendum to the Master Agency
54
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
D. Airport Economic Development Area
(15) continued...
Agreement (Voorde Park Planning and
Construction)
E. West Washington-Chapin Development Area
(1) Resolution No. 2886 related to acquisition
of property in the West Washington-
Chapin Development Area (601-605 W.
Washington)
Mr. Relos noted that 601 —605 W.
Washington was added to the West
Washington Chapin Development Area
Acquisition List by Resolution No. 2852 on
March 22, 2011. It was added in an effort to
clear the non-conforming buildings on this
corner in preparation for more appropriate
infill housing or a historic house move.
The property has a one story, three unit, brick
building built in 1960. The building contains
1,680 square feet on a 68' x 93' lot, across
the street from Tippecanoe Place Restaurant.
Resolution No. 2886 sets the acquisition
value of the property at $72,000, the average
value as determined by two independent
appraisals. Staff recommends approval.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2886
Mr. Alford and unanimously carried, the RELATED TO ACQUISITION OF PROPERTY IN THE
Commission approved Resolution No. 2886 WEST WASHINGTON-CHAPIN DEVELOPMENT
related to acquisition of property in the West AREA(601-605 W.WASHINGTON)
Washington-Chapin Development Area (601-
605 W. Washington)
55
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
E. West Washington-Chapin Development Area
(2) Resolution No. 2887 approving and
accepting a counteroffer for the
acquisition of property (601-605 W.
Washington)
Mr. Relos noted that the owner of 601-605
W. Washington has submitted a counter offer
in the amount of$87,000. When valuing this
property, the appraisals did not consider the
income approach since only one of the three
units is currently leased. The property owner
states that in anticipation of this sale, he has
not actively pursued leasing the units.
Using the income capitalization method of
valuing this property based on its historic
rental income, with a capitalization rate of
11%, the value would be $126,000. This
building had a new roof put on 3 years ago,
with the center unit recently remodeled.
Staff feels the acquisition cost of$87,000 for
this property is reasonable, and requests your
approval of Resolution No. 2886.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2887
Mr. Alford and unanimously carried, the APPROVING AND ACCEPTING A COUNTEROFFER
Commission approved Resolution No. 2887 FOR THE ACQUISITION OF PROPERTY(601-605 W.
approving and accepting a counteroffer for WASHINGTON)
the acquisition of property (601-605 W.
Washington)
(3) Resolution No. 2889 related to acquisition
of property in the West Washington-
Chapin Development Area (109-111 N.
Taylor)
Mr. Relos noted that 109 — 111 N. Taylor St.
was added to the West Washington Chapin
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South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
E. West Washington-Chapin Development Area
(2) continued...
Development Area Acquisition List by
Resolution No. 2852 on March 22, 2011. It
is adjacent to the above property on West
Washington Street. It is a one story office/
commercial building with full basement built
in 1956. The building contains 2,026 square
feet on a 56' x 93' lot, across the street from
Tippecanoe Place Restaurant.
Resolution No. 2889 sets the acquisition
value of the property at $57,500, the average
value as determined by two independent
appraisals. Staff recommends approval.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2889
Mr. Alford and unanimously carried, the RELATED TO ACQUISITION OF PROPERTY IN THE
Commission approved Resolution No. 2889 WEST WASHINGTON-CHAPIN DEVELOPMENT
related to acquisition of property in the West AREA(109-111 N.TAYLOR
Washington-Chapin Development Area (109-
111 N. Taylor)
(4) Resolution No. 2890 approving and
accepting a counteroffer for the
acquisition of property (109-111 N.
Taylor)
Mr. Relos noted that the owner of 109-111
N. Taylor has made a counter offer in the
amount of$65,000. The owners of this
property bought it in 1992 for approximately
$60,000. Over the years they have invested
in a new rubber roof, furnace, and office
upgrades. The property is assessed at
$93,100, and is listed for sale at $79,000.
Staff feels the acquisition cost of$65,000 for
this property is reasonable, and requests
57
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
E. West Washington-Chapin Development Area
(4) continued...
approval of Resolution No. 2890.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2890
Mr. Alford and unanimously carried, the APPROVING AND ACCEPTING A COUNTEROFFER
Commission approved Resolution No. 2890 FOR THE ACQUISITION OF PROPERTY(109-111 N.
approving and accepting a counteroffer for TAYLOR
the acquisition of property (109-111 N.
Taylor)
F. South Side Development Area
(1) Resolution No. 2892 approving and
authorizing the execution of an Addendum
to the Master Agency Agreement (748
Hawbaker Demolition Planning)
Mr. Schalliol noted that this Addendum To
Master Agency Agreement is for contracting
with Christopher B. Burke Engineering to
provide demolition and project design
services for the demolition and reuse of 748
Hawbaker Street.
On May 27 the Commission purchased 748
Hawbaker, located north of Menards and
south of the Mutual Bank on Ireland and
High Street, for uses consistent with the
Erskine Plaza Pond project and the Ireland
and High intersection improvement project.
The lot will be cleared and a sidewalk will be
constructed along the eastern edge of the
property that will connect the Mendards
property and the western end of Erskine
Plaza to Ireland Road. The property will also
be "land banked" to potentially provide
drainage relief if conditions require extra
storm water management solutions in that
58
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
F. South Side Development Area
(1) continued...
western end of the project area. The cost of
the planning proposal with Christopher B.
Burke Engineering, Ltd. is $3,440.00.
Mr. Varner asked if we hadn't decided we
didn't need this parcel when we decided to
not build the new pond(s). Mr. Schalliol
responded that, as large as the pond is that
the Commission excavated, there is extra
water coming off of the church site at the top.
And from the intersection of Ireland and
Miami. We thought all the church water was
going into the pond. It is not. It is going into
a separate pipe that runs right next to this
parcel, so we're going to have to use this
parcel for water detention. We're going to
put some holding tanks on the side of the
parcel.
Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2892
Mr. Alford and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION
Commission approved Resolution No. 2892 OF AN ADDENDUM TO THE MASTER AGENCY
AGREEMENT(748 HAWBAKER DEMOLITION
approving and authorizing the execution of PLANNING)
an Addendum to the Master Agency
Agreement (748 Hawbaker Demolition
Planning)
G. Northeast Neighborhood Development Area
There was no business in the Northeast
Neighborhood Development Area.
H. Douglas Road Economic Development Area
There was no business in the Douglas Road
Economic Development Area.
59
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
6. NEW BUSINESS (CONT.)
L Ratification of Services Contracts
Commission
Role in Service Contract Staff
Transaction Contractor Provided Amount Member
601-605 W Acquisition Wightman Petrie Phase I $1,500 Relos
Washington Environmental
109-111 N Acquisition Wightman Petrie Phase I $1,500 Relos
Taylor Environmental
Upon a motion by Mr. Varner, seconded by Mr. COMMISSION RATIFIED THE SERVICES
Alford and unanimously carried, the Commission CONTRACTS APPROVED BY STAFF SINCE MAY 24,
ratified the Services Contracts approved by staff 2011
since May 24, 2011.
J. Ratification of Temporary Use Agreements
Use/Agency Lot Event Dates of Use
College Football Leighton Parking Hanging Hall of Fame June 16, 2011
Hall of Fame Garage Enshrinement Festival through July 17,
Banner 2011
The Blues 123 S Michigan Auditions and Practice by June 18-19, 2011
Intruders (Michigan Street (band group) The Blues
Shops) Intruders
Upon a motion by Mr. Varner, seconded by Mr. COMMISSION RATIFIED THE TEMPORARY USE
Alford and unanimously carried, the Commission AGREEMENTS APPROVED BY STAFF SINCE MAY
ratified the Temporary Use Agreements approved 24,2011
by staff since May 24, 2011.
7. OTHER
A. Resolution No. 2900 adopting contract language
in accordance with the Minority and Women's
Business Enterprise Diversity Development
Program of the City of South Bend, Indiana
60
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
7. OTHER(CONT.)
A. Resolution No. 2900 continued...
Mr. Leone noted that this is language that results
from an ordinance passed by the South Bend
Common Council promoting minority and
women's business enterprise diversity within the
City of South Bend. That ordinance requires
certain language to be part of all city contracts.
This is the standard language that the Legal
Department has developed. Staff recommends it
be included in Redevelopment Commission
contracts as well.
Upon a motion by Mr. Varner, seconded by Mr. COMMISSION APPROVED RESOLUTION No.2900
Alford and unanimously carried, the Commission ADOPTING CONTRACT LANGUAGE IN
approved Resolution No. 2900 adopting contract ACCORDANCE WITH THE MINORITY AND
WOMEN'S BUSINESS ENTERPRISE DIVERSITY
language In accordance with the Minority and DEVELOPMENT PROGRAM OF THE CITY OF
Women's Business Enterprise Diversity SOUTH BEND,INDIANA
Development Program of the City of South Bend,
Indiana
7. PROGRESS REPORTS
There was no report. PROGRESS REPORTS
8. NEXT COMMISSION MEETING
The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING
scheduled for Tuesday, June 28, 2011 at 4:00 p.m.
61
South Bend Redevelopment Commission
Regular Meeting—June 14, 2011
9. ADJOURNMENT
There being no further business to come before the ADJOURNMENT
Redevelopment Commission, Mr. Varner made a
motion that the meeting be adjourned. Mr. Alford
seconded the motion and the meeting was adjourned at
6:20 p.m.
L
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