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Home My WebLink About2 MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING July 26, 2011 4:00 p.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Legal Counsel: Ms. Marcia Jones, President Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Ms. Stephanie Spivey Mr. Lawrence Meteiver, Esq. Redevelopment Staff. Mr. Don Inks, Director Ms. Jenny Hullinger Mr. David Relos, Economic Development Specialist Mr. Matthew Sikora, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mayor Stephen Luecke Mr. Jeffrey Gibney, Executive Director Ms. Beth Leonard -Inks, Community Forum for Econ. Dev. Ms. Tamara Nicholl- Smith, Director, DTSB Ms. Geri Hathaway, Hathaway2 Mr. Gary Gilot, Public Works Ms. Rita Kopala Mr. William Lamie, ADG Mr. Jim Bognar Ms. Linda Doshi, Chair, Century Center Board Mr. Richard Carlton, Data Realty Mr. Scott Herczeg Mr. David Divik, Century Center Ms. Autumn Psaros, CB Richard Ellis 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Tuesday, July 12, 2011. Upon a motion by Mr. Varner, seconded by Mr. COMMISSION APPROVED THE MINUTES OF THE Downes and unanimously carried, the Commission REGULAR MEETING OF TUESDAY, JULY 12, approved the Minutes of the Regular Meeting of 2011 Tuesday, July 12, 2011. South Bend Redevelopment Commission Regular Meeting —July 26, 2011 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted July 26, 2011, for approval. 305 FUND SBCDA BOND W ightman Petrie 324 AIRPORT AEDA First Financial Bank, Escrow Agent Dore & Associates Michaels Appraisal Service WITT Appraisal Services, Inc David Waszak Appraisals, Inc Owners Association at Blackthorn DLZ Innovation Park Hull & Associates, Inc. Hull & Associates, Inc. Plews Shadley Racher & Braun LLP DLZ Grade Rite Cecilla E Nowak Abonmarche Meridian Title Corporation Meridian Title Corporation Hathaway 2 Inc. BSA LifeStructures Ken Herceg & Associates, Inc 3. APPROVAL OF CLAIMS (CONT.) 324 AIRPORT AEDA continued... DHA DHA R.E Pitts & Associates, Inc. Jerome E. Michaels, MAI South Bend Water Works Indiana & Michigan Power Co Sopko, Nussbaum, Inabnit & 6,800.00 William & Lafayette Traffic Analysis 20,105.82 Studebaker Area A Demolition Ph W 276,810.56 Studebaker Area A Demolition Ph IV 650.00 1527 Kemble 600.00 1527 Kemble 2,900.00 803 W Washington 11,052.32 Blackthorn Corporation Park 32,422.50 Studebaker Area A Demolition PH N 498.33 Monthly Office Rental June 11 990.00 Consulting Services 8,499.03 Oliver Groundwater Sampling at Oliver 50,652.52 Industrial Pk 359.92 Oliver Plow Works Cost Recovery 8,175.00 Olive RD/Pine RD 17,587.50 Olive Rd Widening 8,325.00 Olive Rd/U.S. 20 6,855.00 Mayflower Rd Sanitary Sewer 50,652.52 1525 S Kemble 49,479.00 1503 -1505 Kemble 9,856.49 Ignition Park 9,100.00 Master Planning for Ignition Park 3,030.00 Sheridan Ave & Lincoln Way West Design 4 3,605.00 Lot 4 Ignition Park 2nd Minor 560.00 Subdivision for the 2nd Data Realty 2,520.00 Appraisal Services 1,975.00 Appraisal Services 119.02 909 Indiana Shawn Larrison 7.00 501 Wenger St 5,703.75 Legal Services South Bend Redevelopment Commission Regular Meeting —July 26, 2011 Kaczmarek Meridian Title Corporation 50,657.54 1510 Kemble 420 FUND TIF DISTRICT -SBCDA GENERAL DTSB 41,600.00 Beautification Program DHA 9,600.00 ALTA Survey for 12 Comm. Properties in Monroe Pk Brown & Brown General Construction, Inc. Ampco System Parking L.L.Geans Construction Company Indiana Electric Power NIPSCO Rose Pest Solutions Enyart Electric Motor Repair, Inc. CB Richard Ellis South Bend Water Works Sopko, Nussbaum, Inabnit & Kaczmarek Ziolkowski Construction, Inc. NIPSCO Ziolkowski Construction, Inc. Larson Danielson Construction 422 FUND WEST WASHINGTON DISTRICT Sopko, Nussbaum, Inabnit & Kaczmarek 9,731.00 Morris PAC Renovations 3,003.16 St. Joseph / 225 Main St 62,097.14 Jefferson/Franklin Streetscape 8.84 755 S Michigan St. 32.10 755 S Michigan St. 99.00 LaSalle Hotel 5,354.83 S/C Dry Out After Flood 754.03 LaSalle Hotel June Management Fee & General Maintenance 37.96 325 S Lafayette Blvd 63637.50 Legal Services 12,510.00 Richey's Radiator Service Paint Building 1,288.57 329 S Lafayette 9,429.00 Coveleski Stadium Improvements 208,107.16 Coveleski Stormwater System 450.00 Legal Services 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT Walsh & Kelly, Inc. 30,988.73 Memorial Hospital Streetscape Improvements 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA #I Christopher B Burke 29,408.77 Fellows St Corridor Improvement Lawson- Fisher Associates P.C. 67,990.95 S Main To Lafayette Survey Christopher B. Burke 12,488.00 Erskine Detention Pond Reconstruction 433 FUND REDEVELOPMENT ADMINISTRATION GENERAL Sopko, Nussbaum, Inabnit & 1,462.50 Legal Services Kaczmarek 438 FUND COVELESKI BOND 3 South Bend Redevelopment Commission Regular Meeting —July 26, 2011 Larson Danielson Construction Total 18,376.74 Coveleski Stormwater System 1,121,352.28 Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved the Claims submitted July 26, 2011, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Public Hearing (1) Public Hearing on Resolution No. 2907 appropriating tax increment financing revenues from Allocation Area Fund for the payment of certain obligations and expenses related to the West Washington - Chapin Development Area Allocation Area. Ms. Leonard -Inks noted that Resolution No. 2907, appropriates $495,000 from the West Washington- Chapin TIF. The city has $295,000 now, and expects to receive the remaining $200,000 in the end of year distribution. $495,000 is a conservative estimate. The city received $630,000 from the WWCDA TIF in 2010. Mr. Varner asked if the city can expect $630,000 this year. Ms. Leonard -Inks responded that it has fluctuated over the years. 4 COMMISSION APPROVED THE CLAIMS SUBMITTED JULY 26, 201 1, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting —July 26, 2011 Ms. King asked for clarification that TIF funds are at $495,000 right now to which Ms. Leonard -Inks agreed yes. Mr. Inks noted that the public hearing is complete containing: (1) A copy of Resolution No. 2906 determining to make the appropriation and setting the public hearing on Resolution No. 2907; (2) a copy of the Notice of Hearing; a copy of Resolution No. 2907, the subject of the public hearing; (3) an affidavit from Jacki Krolczyk, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on July 8, 2011; (4) and an affidavit from Richard Andrysiak, Classified Manager of the Tri- County News, that the Notice of Hearing was published in that newspaper on July 8, 2011. Ms. Jones opened the Public Hearing for anyone who wished to speak regarding Resolution No. 2907. There was no one who wished to speak. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (2) Consideration of Resolution No. 2907. Mr. Varner questioned if the TIF funds were going to be used for the Hansel Center. Mr. Gibney responded that it was not and the city recently acquired the one -story office properties at the foot of Tippecanoe Place. These are for other potential acquisitions within the WWCDA. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2907 appropriating tax increment financing revenues from Allocation Area Fund for the COMMISSION APPROVED RESOLUTION NO. 2907 APPROPRIATING TAX INCREMENT FINANCING REVENUES FROM ALLOCATION AREA FUND FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THE WEST WASHINGTON -CHAMN DEVELOPMENT AREA ALLOCATION AREA. South Bend Redevelopment Commission Regular Meeting —July 26, 2011 payment of certain obligations and expenses related to the West Washington- Chapin Development Area Allocation Area. B. Receipt of Bids (1) Receipt of Bids for 609 Columbia Street in the South Bend Central Development Area. Mr. Inks noted that the five properties here No BIDS WERE RECEIVED are all residential properties. No bids were received for any of the five. The law stipulates that the Commission may not consider any non - conforming offer until thirty days after the formal receipt of bids. After that time it can consider a negotiated offer. Staff believes there is some interest in the properties. We will continue to pursue those. (2) Receipt of Bids for 602 Carroll Street in the South Bend Central Development Area. No bids were received. No BIDS WERE RECEIVED (3) Receipt of Bids for 310 E. South Street in the South Bend Central Development Area. No bids were received. No BIDS WERE RECEIVED (4) Receipt of Bids for 628 Rush Street in the South Bend Central Development Area. No bids were received. No BIDS WERE RECEIVED (5) Receipt of Bids for 620 Columbia Street in the South Bend Central Development Area. 2 South Bend Redevelopment Commission Regular Meeting —July 26, 2011 No bids were received. C. South Bend Central Development Area (1) Policy for Early Termination of a Lease. Mr. Inks noted that there was a lot of discussion of this policy at the July 12 meeting. Staff has incorporated the Commission's suggestions and added a rationale section at the beginning of document. It is on the agenda for approval. Ms. Jennings noted that the Policy for Early Termination of a Lease is for redevelopment retailers who have concluded they are no longer able to operate their business downtown. Those businesses that have elected to close before fulfilling the lease - term obligation. Rather than holding them responsible for the duration of the lease, staff has drafted a policy to release them from the lease provided they meet the qualifications listed in the policy. Staff recommends approval. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Policy for Early Termination of a Lease. (2) Early Termination of Lease for Spark Design Studios, LLC Ms. Jennings noted that based on the policy just approved for early termination, Spark Design Studios has elected to terminate its lease prematurely. Spark Design Studios entered into a three -year lease with the Redevelopment Commission in 2009. In April of 2011, Spark Design concluded they were no longer able to operate its business. 7 NO BIDS WERE RECEIVED. COMMISSION APPROVED THE POLICY FOR EARLY TERMINATION OF A LEASE South Bend Redevelopment Commission Regular Meeting —July 26, 2011 Therefore, they are requesting an early lease termination from the Redevelopment Commission. Pursuant to the Redevelopment Commission's new Policy on Early Lease Termination, Spark Design meets all of the requirements. The owner has also agreed they do not intend to relocate their business in another space in the South Bend Central Development Area for one year after the execution of this agreement. Staff recommends approval. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Early Termination of Lease for Spark Design Studios, LLC. (3) Lease with Girbaud Hines and Sonja Young dba Vesuvio's Pizza for the Wayne Street Garage retail space. Ms. Jennings noted that at its July 12 meeting the Commission approved the terms of a lease for Vesuvio's Pizza for the Wayne Street Garage retail space. The lease has a three -year term beginning August 25, 2011, for the Redevelopment Retail property located at 117 E. Wayne Street. The rental terms are: Year 1- Monthly Rent $1,500, (Annually, $18,000); Year 2- Monthly Rent $1,750 (Annually, $21,000); Year 3- Monthly Rent $2,000 (Annually, $24,000). After year three Vesuvio's has the option to renew the agreement for one year. Tenant will be responsible for payment of all utilities including property taxes. Staff recommends approval. Mr. Varner questioned if places like Vesuvios would be interested in a longer term lease. Instead of a one -year agreement, why not a five -year or ten -year agreement for 8 COMMISSION APPROVED THE EARLY TERMINATION OF LEASE FOR SPARK DESIGN STUDIOS, LLC. South Bend Redevelopment Commission Regular Meeting —July 26, 2011 stability reasons? Ms. Jennings responded that that's been done in the past, but the city has not held tenants to that duration, and isn't likely to now that we have the early lease termination. Ms. King asked if it's the lessee that doesn't want the longer term lease or is it just our procedure or policy? Mr. Inks responded that it is not the Commission that is opposed to the longer term lease. The lessee is nervous about signing a long term lease. Mr. Varner added that in the interest of encouraging something of this nature, the option to renew could be the same three -year period or subsequent three -year period. Mr. Downes agreed that we should use it as an incentive when we can. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Lease with Girbaud Hines and Sonja Young dba Vesuvio's Pizza for the Wayne Street Garage retail space. (4) Funding for new pavilion at Century Center Island Park. Mr. Relos noted that in an effort to further enhance the beauty and character of the Century Center island, ADG has been studying a variety of permanent pavilion styles that could be erected to not only provide shelter, but to be an artistic compliment to Century Center's architecture and the surrounding community. The project is expected to cost approximately $531,000 to $533,000. Mr. Gibney provided a rendering of the proposed pavilion. He noted that the E UPON A MOTION BY MR. VARNER, SECONDED BY MR. DOWNES AND UNANIMOUSLY CARRIED, THE COMMISSION APPROVED. South Bend Redevelopment Commission Regular Meeting —July 26, 2011 pavilion was part of the original plan for the upgrades for Century Center Island Park. The current tent will be removed and given, probably to the Park Department. The view of Century Center from the East Bank is its most attractive view. Many important venues enjoy that view, including the East Bank Townhomes, 1St Source Bank and the adjoining hotel. It's important that the island be visually appealing. Today the City is proposing a piece of art that is attractive, challenging, exciting and also extremely functional. The canopy will have a long life span. Mr. Lamie noted that in February, 2009, when enhancements to Island Park were proposed, a permanent pavilion was part of that proposal. There was not enough money in the Century Center bond to do all that was proposed, so the pavilion was dropped. It is now being funded from TIF funds. The pavilion with be both aesthetic and functional. The permanent structure will have a design that is open, will have no directional front door to it, will provide over 6,400 square feet of drip -edge protection, sun protection, and night time illumination. This investment is significant so we wanted something that was going to last. It is designed to hold a 30 pound snow -load and to withstand 90 mph winds. It's built to last. Mr. Lamie noted that the greatest challenge is the island itself. There is only one access to it. Mr. Downes asked for an explanation of the illumination of the pavilion. Mr. Lamie explained the pavilion will be made of a Teflon - coated fiberglass. In the evening it 10 South Bend Redevelopment Commission Regular Meeting —July 26, 2011 has a great glowing quality. Minimal lighting will be put in, only enough to give the area a warm glow. Mr. Downes asked how easy the wind screens are to put up and take down. Mr. Lamie explained that there will be permanent sleeves built into the concrete, of a mesh fabric similar to that used in the existing tent. They would be no more than six to seven feet in height. Something very simple that can be put up or taken down easily. If an event requires more privacy, there are other materials that could be used to create some visual screens. Ms. Spivey asked about the public accessibility to the area. Mr. Lamie responded that he's not the person to address the security of the space. During the day the gates are open for public access. Entry and exit through the building itself is not necessary. There are paved pathways and a bridge that provide public access. When there is an event on the island, the bridge can be blocked off. Ms. King asked if any of the materials will require painting or regular maintenance. Mr. Lamie responded that that is not expected. The anchoring units are all stainless steel. The four upright columns will all be painted and painted a special totemic product that has a warranty for chipping etc. There should be no regular maintenance on the posts, other than checking them for any damage. Ms. King expressed concern that the original sketch from 2009 showed a railing around the top of the Island Park. They do not appear to be in the drawings provided to the Commissioners. That is a very low wall and 11 South Bend Redevelopment Commission Regular Meeting —July 26, 2011 sometimes alcohol is served on the island. Will there be a wall? Ms. Doshi, Chair of the Building and Grounds Committee for the Century Center Board of Managers, responded that she's not aware that a railing has ever been contemplated. Mr. Herczeg said there has never been an accident on the island. They've had to remove kids from playing there, and they had one adult person intentionally jump. Mr. Lamie said ADG did investigate whether a railing was required. The Building Department said that the island without a rail was grandfathered into the current requirements. Ms. King said that the more attractive the city makes the island, the more people will use it. She would like to see safety concerns addressed. Mr. Alford questioned whether weddings, luncheons and other events requiring good weather would be discouraged from using the island with this pavilion. Ms. Doshi responded that when those types of events are scheduled for the island, the Great Hall is also booked as a backup venue. The new General Manager and staff think it could be very attractive for parties and a variety of events. Its use will probably increase, but may be different than how it's being used now. Staff is asking for approval of a not -to- exceed amount of $535,000 with the projected estimate being $531,000 to $533,000. 12 South Bend Redevelopment Commission Regular Meeting —July 26, 2011 Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved funding for the new pavilion at Century Center Island Park in the not -to- exceed amount of $535,000. (5) Proposal for architectural services for Century Center Island Park Pedestrian Bridge. Mr. Relos noted the proposal for architectural services for Century Center Island Park Pedestrian Bridge, a second pedestrian bridge connecting the island to the building. This bridge would connect to the island in the area of the new pavilion, run above the rapids, and connect to the building in the vicinity of the north east corner of Grand Hall. The proposal from ADG to study design concepts, construction documentation, bidding, and construction oversight for this bridge is in the amount of $22,000. Staff requests approval for the proposed design of second pedestrian bridge in the amount of $22,000. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the proposal for architectural services for Century Center Island Park Pedestrian Bridge for the amount of $22,000. (6) Proposal for additional architectural services related to Century Center Island Park Pavilion. Mr. Relos noted the contract addendum in the amount of $5,500 proposed for additional architectural services related to Century 13 COMMISSION APPROVED FUNDING FOR NEW PAVILION AT CENTURY CENTER ISLAND PARK IN THE NOT -TO- EXCEED AMOUNT OF $535,000. COMMISSION APPROVED THE PROPOSAL FOR ARCHITECTURAL SERVICES FOR CENTURY CENTER ISLAND PARK PEDESTRIAN BRIDGE FOR THE AMOUNT OF $22,000. South Bend Redevelopment Commission Regular Meeting —July 26, 2011 Center Island Park Pavilion. This addendum is for the design of removable wind screens (located at the corners of the new pavilion) to help block winds if needed. Staff requests approval for the design of wind screen/drainage system contract addendum in the amount of $5,500. Mr. Alford asked about the number of screens that could be purchased for the $5,500. Mr. Lamie responded that the $5,500 was the cost of design, but he was confident that the proposed construction cost will include all necessary screens. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the proposal for additional architectural services related to Century Center Island Park Pavilion in the amount of $5,500. (7) Proposal for design and repair of Century Center Island Park foundation wall. Mr. Relos noted the proposal for design and repair of Century Center Island Park foundation wall. Because of a drainage issue on the island's eastern wall, a combination surface and sub -grade storm water collection and drainage system is needed to alleviate the drainage of storm water that currently leaks out the wall and is causing settlement of the pavement above. This project is estimated to cost no more than $30,000. Staff requests approval for the construction of a new drainage system in a not -to- exceed amount of $30,000. Upon a motion by Mr. Varner, seconded by 14 COMMISSION APPROVED THE PROPOSAL FOR ADDITIONAL ARCHITECTURAL SERVICES RELATED TO CENTURY CENTER ISLAND PARK PAVILION IN THE AMOUNT OF $5,500. COMMISSION APPROVED PROPOSAL FOR DESIGN AND REPAIR OF CENTURY CENTER ISLAND PARK South Bend Redevelopment Commission Regular Meeting —July 26, 2011 Mr. Downes and unanimously carried, the FOUNDATION WALL IN A NOT -TO- EXCEED Commission approved proposal for design AMOUNT OF $30,000. and repair of Century Center Island Park foundation wall in a not -to- exceed amount of $30,000. D. Airport Economic Development Area (1) Funding for Ignition Park Infrastructure — Phase 1A Ms. Hathaway noted that funding for Ignition Park Infrastructure — Phase 1 A supports development with the initial phase providing the continuation of Stull Street from the east, Cotter Street from the west, the connecting circle based on the Master Plan and the extension from that circle to develop Scott Street north of the existing rail tracks. Committing to the Phase 1 A Infrastructure Project will allow the Commission to sell land along these roads to developers or future owner /occupants, such as Data Realty, for whom there is a Contract For Purchase & Sale that follows this request. Mr. Gilot noted that the city intends to construct approximately five blocks of street in order to open up Ignition Park to development. The city will also construct electrical, water and sewer, and communications infrastructure to support expected future development in the park. Infrastructure costs for Phase Al will be approximately $2,775,000 and additional BSA LifeStructure's design fee will be $128,000. Staff requests approval of a not to exceed amount of $3,000,000 for the design and infrastructure. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED FUNDING FOR IGNITION Ms. King and unanimously carried, the PARK INFRASTRUCTURE - PHASE I A AND THE BSA LIFESTRUCTURES -PHASE I A DESIGN 15 South Bend Redevelopment Commission Regular Meeting —July 26, 2011 Commission approved Funding for Ignition Park Infrastructure — Phase I and the BSA LifeStructures —Phase 1 A Design Proposal for a total amount not to exceed $3,000,000. (2) Proposal from BSA LifeStructures for Ignition Park Infrastructure — Phase 1A Design. As stated above, the BSA LifeStructures proposal for design of the Site Documents for the infrastructure improvements totaled $128,000, but was wrapped into the not -to- exceed fee approved above at $3,000,000. (3) Funding for provisions contained in the Contract for Purchase and Sale of Ignition Park 2 °d Minor Subdivision Lot #4. Ms. Hathaway noted that Data Realty, a startup company based at Innovation Park at Notre Dame, announced in February that it will break ground this year for a Tier III data center serving small to mid -sized businesses in South Bend and throughout the Midwest. Construction may take about nine to 12 months. Ms. Hathaway noted the contract for purchase and sale of the five acre Lot #4 to Data Realty Northern Indiana, LLC is in the amount of $26,250 per acre for a total of $131,250. Data Realty will immediately construct a building of approximately 54,000 sq. ft., costing in excess of $10,000,000. The fifteen employee company, of above average salaries, is expected to grow to 30 employees when the building is expanded to 100,000 sq. ft. Data Realty has agreed to not seek property tax abatement. It is anticipated their tax obligation will equal approximately $273,000 per year on the initial building. 16 PROPOSAL FOR A TOTAL AMOUNT NOT TO EXCEED $3,000,000 BSA LIFESTRUCTURES PROPOSAL FOR DESIGN OF THE SITE DOCUMENTS FOR THE INFRASTRUCTURE IMPROVEMENTS WAS WRAPPED INTO THE NOT TO EXCEED FEE APPROVED ABOVE South Bend Redevelopment Commission Regular Meeting —July 26, 2011 As part of the sales contract, the Redevelopment Commission will: • Bring a redundant power line to Ignition Park from the Kankakee substation at a cost of $100,000. • Support faVade enhancements to the Data Realty building to set an aesthetic tone for Ignition Park and meet the park's aesthetic requirements at a cost of $1.4 million, including a design fee of $77,500 for BSA LifeStructures. Provide a backup generator at a cost of $900,000 to Data Realty in exchange for 15 years worth of five data center equipment racks provided by Data Realty to the City and future Ignition Park tenants (valued at $1,080,000). Data centers, for security reasons, must be built as bunkers; however, Ignition Park is planned as a very high -tech, high - quality aesthetic park. This aesthetic plan will be advantageous to all future tenants but adds no appreciable value to a data center. This Contract provides enhancements to the Data Realty building to meet the park's aesthetic requirements. The estimated cost is $1,400,000. BSA LifeStructure's design fee for those enhancements is $77,500. The enhancements to Data Realty will set the aesthetic tone for Ignition Park which is especially critical for the Park's first building. Mr. Carlton, President & CEO of Data Realty, thanked the Economic Development staff for its diligent work that moved this project forward. There's been a monumental amount of work done. We started with a blank slate for Ignition Park. The end result 17 South Bend Redevelopment Commission Regular Meeting —July 26, 2011 is something very exciting for Data Realty, beneficial for everyone involved, very functional aesthetically, but more importantly the Park will have some differentiators when it is marketed. He said he'd recently, been to a Data Center conference. There weren't any booths sponsored by states or municipalities. He asked one of the state economic developer officials why they were there. They were there to attract data centers, because data centers are the foundation of technology jobs and if you don't have data centers, you don't have tech jobs. That was what Mr. Carlton wanted to hear. South Bend is starting its technology park with a data center. He said when Data Realty approached South Bend, they asked where they could locate to have the best economic impact. Mr. Carlton said that over the last few months he has had numerous media conversations, not only about what Data Realty is doing, but more importantly the bigger story which is the transformation of the Studebaker corridor into a technology corridor. The story has been picked up in the Chicago Sun Times, Indianapolis Star and he got a call from a real estate person today who said a real estate magazine did a whole feature on the Studebaker corridor and Ignition Park. Last week he was on Fox Business Live for five minutes talking about Ignition Park nationally. Our better days as a town are ahead of us and Data Realty is very excited about being a small part of the opportunity to transform that corridor. Staff recommends approval of this project at a cost to the city of $2,500,000, keeping in mind that the anticipated taxes and rack space value exceed that amount. 18 South Bend Redevelopment Commission Regular Meeting —July 26, 2011 Mr. Varner questioned the rack space and whether it would be leased by the City of South Bend or by Data Realty. Ms. Hathaway responded that it will be free to the city. She added that five racks is a great amount of space. Mr. Carlton added that the thought behind that was that the racks could be for the city's use or, more importantly, as an incentive secure other tenants for the park. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved the funding for provisions contained in the Contract for Purchase and Sale of Ignition Park 2nd Minor Subdivision Lot #4 in the amount of $2,500,000. (4) Contract for Purchase and Sale of Ignition Park 2 °d Minor Subdivision Lot #4 to Data Realty Northern Indiana, LLC. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved the Contract for Purchase and Sale of Ignition Park 2nd Minor Subdivision Lot #4 to Data Realty Northern Indiana, LLC (5) Proposal from BSA LifeStructures for Data Realty building enhancements design. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission accepted the proposal from BSA LifeStructures for Data Realty building enhancements design. 19 COMMISSION APPROVED THE FUNDING FOR PROVISIONS CONTAINED IN THE CONTRACT FOR PURCHASE AND SALE OF IGNITION PARK 2ND MINOR SUBDIVISION LOT #4 IN THE AMOUNT OF $2,500,000 COMMISSION APPROVED THE CONTRACT FOR PURCHASE AND SALE OF IGNITION PARK 2ND MINOR SUBDIVISION LOT #4 TO DATA REALTY NORTHERN INDIANA, LLC COMMISSION ACCEPTED THE PROPOSAL FROM BSA LIFESTRUCTURES FOR DATA REALTY BUILDING ENHANCEMENTS DESIGN South Bend Redevelopment Commission Regular Meeting —July 26, 2011 E. West Washington- Chapin Development Area There was no business in the West Washington - Chapin Development Area. F. South Side Development Area There was no business in the South Side Development Area. 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. I. Ratification of Services Contracts Upon a motion by Mr. Downes, seconded by Mr. Varner unanimously carried, the Commission ratified the Temporary Use Agreements approved by staff since July 12, 2011. 7. PROGRESS REPORTS There were no Progress Reports. 20 COMMISSION RATIFIED THE TEMPORARY USE AGREEMENTS APPROVED BY STAFF SINCE JULY 12, 2011 PROGRESS REPORTS Commission Role in Service Contract Staff Transaction Contractor Provided Amount Member 803 W Washington Acquisition Jerome E Michaels Appraisal $2,750 Relos 803 W Washington Acquisition David Waszak Appraisal $2,900 Relos Appraisals 1527 Kemble Acquisition Witt Appraisal Appraisal $600 Relos Services 1527 Kemble Acquisition Michaels Appraisal Appraisal $650 1 Relos Services Upon a motion by Mr. Downes, seconded by Mr. Varner unanimously carried, the Commission ratified the Temporary Use Agreements approved by staff since July 12, 2011. 7. PROGRESS REPORTS There were no Progress Reports. 20 COMMISSION RATIFIED THE TEMPORARY USE AGREEMENTS APPROVED BY STAFF SINCE JULY 12, 2011 PROGRESS REPORTS South Bend Redevelopment Commission Regular Meeting —July 26, 2011 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Tuesday, August 9, 2011 at 4:00 p.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Ms. King made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 4:55 p.m. Donald E. Inks, Director 21