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HomeMy WebLinkAbout01-03-06 Redevelopment Commission Minutes Minutes Special MeetingSOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING January 3, 2006 8:45 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Legal Counsel: Ms. Marcia Jones, President Mr. Karl King, Vice President Mr. Greg Downes, Secretary Mr. Hardie B lake, Jr. Mr. William Hojnacki (part of meeting) Ms. Cheryl Greene, Esq. Mr. Shawn Peterson, Esq. Redevelopment Staff: Mr. Don Inks, Director Ms. Sharon Kendall, Executive Director Ms. Cheryl Phipps, Recording Secretary Mr. Robert Mathia, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Mr. Bill Schalliol, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Ms. Jennifer Laurent, Economic Development Specialist Others Present: 2. APPROVAL OF MINUTES Ms. Pam Paluszewski, Legal Dept. Ms. Jamie Loo, South Bend Tribune A. Approval of Minutes of the Regular Meeting of Friday, December 16, 2005. There were no Minutes for approval. 3. APPROVAL OF CLAIMS THERE WERE NO MINUTES FOR APPROVAL. Redevelopment Commission Claims submitted January 3, 2006 for approval. FUND 305 SBCDA 2003 BOND SBD Reprographics 572.67 420 FUND TIF DISTRICT-SBCDA GENERAL Meridian Title Corp 87,311.00 Art Mosaic Tile Co $ 87,883.67 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 2. APPROVAL OF CLAIMS (CONT.) Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved the Claims submitted January 3, 2006, and ordered checks to be released. 4. COMMUNICATIONS A. Communication from Rum Village Neighborhood Association. Mr. Inks read into the record the Communication from Rum Village Neighborhood Association. December 13, 2005 Redevelopment Commission 227 W. Jefferson Suite 1200 S South Bend, IN 46601 Dear Commission 1l~embers, The Rum Village Neighborhood Association would like to thank the Redevelopment Commission for passing Resolution No. 2198, which permitted the Association to obtain the yard shed on the property at 2610 Kenwood Street. This building has been relocated to Heritage Friendship Park at 1520 S. Kendall Street. This building will give the Association a place to store the riding lawnmower and other garden maintenance tools. The equipment is being stored in several places. COMMISSION APPROVED THE CLAIMS SUBMITTED JANUARY 3, 2006, AND ORDERED THE CHECKS TO BE RELEASED COMMUNICATION FROM RUM VILLAGE NEIGHBORHOOD ASSOCIATION 2 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 4. COMMUNICATIONS (CONT.) A. Continued... Thank you for your suppoNt of the Rum Village Neighborhood Association. Together we can build a great community for all to live in. Sincerely, l~laurice Williams Rum Village Neighborhood Association President 5. OLD BUSINESS A. South Bend Central Development Area (1) Commission approval requested for Resolution No. 2202 approving a form of lease for 117/119 E. Wayne Street and authorizing the execution and delivery thereof and other related matters. Mr. Williams noted that Resolution No. 2202 approves a form of lease for the Commission's commercial leases and authorizes the Commission to execute the lease with Brenda Markin for the Wayne Street garage retail space at 117/119 E. Wayne Street. Mr. Williams noted that there were several minor changes to the lease that was originally presented with Resolution No. 2202: (1) changed the occurrences of "State Cafe" to "Brenda Markin" because she is operating as a sole proprietor; (2) adjusted dates related to when the Commission could provide the property; and (3) added some items to the list of improvements that would be performed before Ms. Markin took possession. They 3 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 5. OLD BUSINESS (CONT.) A. South Bend Central Development Area () continued... were all very minor changes. Mr. Downes noted that one item that changed was in Article 8 regarding the insurance. He did not want to hold up approval of this lease, but suggested the Commission could discuss the required limits of insurance for leases at a future date. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2202 approving a form of lease for 117/119 E. Wayne Street and authorizing the execution and delivery thereof and other related matters. 6. NEW BUSINESS A. Tax Abatements (1) Commission approval requested for Resolution No. 2203 approving real property tax deduction for property in the Airport Economic Development Area. (Enzyme Research Laboratories.) Mr. Mathia presented the staff report on the entire project with respect to the request for both real and personal property tax abatement. Enzyme Research Associates plans to relocate its operation and R2Diagnostics to 1801 Commerce Drive in the Airport Economic Development Area. Both companies are wholly owned by Mike Morris. Both companies have been housed COMMISSION APPROVED RESOLUTION N0.2202 APPROVING A FORM OF LEASE FOR I I ~/ 119 E. WAYNE STREET AND AUTHORIZING THE EXECUTION AND DELIVERY THEREOF AND OTHER RELATED MATTERS 4 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 6. NEW BUSINESS (CONT.) A. Tax Abatements () continued... in the 9,000 sft building at Enzyme Research Laboratories' 412 S. Lafayette Blvd. facility. The real property tax abatement is for rehab of the 25,423 sft Commerce Drive facility. The project will result in increased production capacity and an expanded product line. The estimated cost of the rehab is $1,000,000. The personal property abatement is for $800,000 of equipment. It is estimated that the project will create six new, permanent, full-time jobs representing a new annual payroll of $300,750. The project will also maintain eleven existing permanent full-time jobs with an annual payroll of $324,200. Enzyme Research Laboratories has had no previous tax abatements. The property is properly zoned for the proposed use. The property is located in the Airport Economic Development Area; therefore, the petition for both real and personal property tax abatement must first be approved by the South Bend Redevelopment Commission. The project qualifies for an eight-year real property tax abatement and afive-year personal property tax abatement under the tax abatement ordinance. Based on rehabilitation costs of $1,000,000 for the facility, the cost of the real property 5 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 6. NEW BUSINESS (CONT.) A. Tax Abatements () continued... tax abatement is as follows: Estimated Taxes Over 8 Yrs Without Abatement $259,672 With 8 Yr Abatement $112,957 Estimated Cost of 8 Yr Abatement $146,715 Estimated Taxes Over 5 Yrs Without Abatement $69,652 With 5 Yr Abatement $23,839 Estimated Cost of 5 Yr Abatement $45,813 Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2203 approving real property tax deduction for property in the Airport Economic Development Area. (Enzyme Research Laboratories.) (2) Commission approval requested for Resolution No. 2204 approving personal property tax deduction for property in the Airport Economic Development Area. (Enzyme Research Assoc.) Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2204 approving personal property tax deduction COMMISSION APPROVED RESOLUTION N0.2203 APPROVING REAL PROPERTY TAX DEDUCTION FOR PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (ENZYME RESEARCH LABORATORIES. COMMISSION APPROVED RESOLUTION N0.2204 APPROVING PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (ENZYME RESEARCH ASSOC. 6 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 6. NEW BUSINESS (CONT.) A. Tax Abatements continue ... for property in the Airport Economic Development Area. (Enzyme Research Assoc.) B. South Bend Central Development Area (1) Commission approval requested for Resolution No. 2210 determining the Commission's intent to pay certain expenses incurred for local public improvements in or serving the South Bend Central Allocation Area (South Bend Allocation Area No. lA) from the South Bend Central Allocation Area (South Bend Allocation Area No. lA) Special Fund. Mr. Inks noted that Resolution No. 2210 sets the appropriation amount at $6,000,000, which is anot-to-exceed amount. It also authorizes the advertising for a public hearing to be set at 10:00 a.m., January 20, 2006. Mr. Inks noted that this is the first of a series of such resolutions on the agenda today, one for each TIF area expected to have funds available to spend. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved Resolution No. 2210 determining the Commission's intent to pay certain expenses incurred for local public improvements in or serving the South Bend Central Allocation Area (South Bend COMMISSION APPROVED RESOLUTION N0.2210 DETERMINING THE COMMISSION'S INTENT TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND ALLOCATION AREA N0. lA) FROM THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND ALLOCATION AREA N0. 1 A) SPECIAL FUND. 7 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (} continued... Allocation Area No. lA) from the South Bend Central Allocation Area (South Bend Allocation Area No. lA) Special Fund (2} Filing of Resolution No. 2215 a resolution of the South Bend Redevelopment Commission appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2006, and ending December 31, 2006, including all outstanding claims and obligations, fixing a time when the same shall take effect and setting a Public Hearing on Resolution No. 2217 for 10:00 a.m., January 20, 2006. (Fund 424, Wayne St. Garage and Retail Space} Mr. Inks noted that Resolution No. 2215 is for Fund 424 which includes the Wayne St. Garage and Retail Space. The action requested today is to accept the filing and set a public hearing on Resolution No. 2215 for 10:00 a.m., January 20, 2006. Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried, the Commission accepted for filing Resolution No. 2215 and set a public hearing on Resolution No. 2215 for 10:00 a.m., January 20, 2006. COMMISSION ACCEPTED FOR FILING RESOLUTION N0.221 S AND SET A PUBLIC HEARING ON RESOLUTION N0.2215FOR 10:00 A.M., JANUARY 20, 2006. 8 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) Filing of Resolution No. 2216 a resolution of the South Bend Redevelopment Commission appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2006, and ending December 31, 2006, including all outstanding claims and obligations, fixing a time when the same shall take effect and setting a Public Hearing on Resolution No. 2217 for 10:00 a.m., January 20, 2006. (Fund 425, Leighton Retail Space and Courtyard Mr. Inks noted that Resolution No. 2216 appropriates money from Fund 425 for the Leighton Retail Space and Courtyard. The action requested today is to accept the filing and set a public hearing on Resolution No. 2216 for 10:00 a.m., January 20, 2006. Upon a motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried, the Commission accepted for filing Resolution No. 2215 and set a public hearing on Resolution No. 2216 for 10:00 a.m., January 20, 2006. (4) Commission approval requested for proposal to replace storefront glass in the South Bend Central Development Area. (Retail space,117/119 E. Wayne Street) Mr. Williams noted that staff sought a proposal from Quality Glass Service to replace the smoked glass storefront in the COMMISSION ACCEPTED FOR FILING RESOLUTION N0.221 S AND SET A PUBLIC HEARING ON RESOLUTION N0.2216FOR 10:00 A.M., JANUARY 20, 2006. 9 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area () continued... Wayne Street retail space with clear glass. The smoked glass has been considered to be an impediment to retail and its replacement is key to the Letter of Intent from Brenda Markin of the State Cafe. The proposal is for $4,190.38. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved the request for proposal in the South Bend Central Development Area and accepted the proposal from Quality Glass in the amount of $4,190.3 8 to replace storefront glass in the retail space at 117/119 E. Wayne Street. (5) Commission approval requested for proposal for evaluation of electrical and HVAC systems in the South Bend Central Development Area. (Retail space, 117/119 E. Wayne Street) Mr. Williams noted that Herrman & Goetz Services has submitted a proposal to furnish a detailed estimate of repairs needed to bring the electrical and mechanical systems in the Wayne Street retail space up to an acceptable level of repair. This will involve some electrical changes and the re-engineering of the HVAC system. The fee proposed is $584. Staff recommends accepting the proposal. COMMISSION APPROVED THE REQUEST FOR PROPOSAL IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM QUALITY GLASS IN THE AMOUNT OF $4,190.3 8 TO REPLACE STOREFRONT GLAS S IN THE RETAIL SPACE AT 11 ~~ 119 E. WAYNE STREET. 10 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area continue ... Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried the Commission approved the request for proposal for evaluation of electrical and HVAC systems in the South Bend Central Development Area and accepted the proposal from Herrman & Goetz Services in the amount of $584 for the scope of services proposed. (6) Staff report on disposition of property in the South Bend Central Development Area. (Oscos site) On December 16, one proposal was submitted for the purchase of the Former Osco's building on Michigan Street in the South Bend Central Development Area. South Bend Chocolate Company proposes to purchase the building from the Commission for $100,000, with a plan to invest between $600,000 to $750,000 in the building and an additional $600,000 to $750,000 in retail build-out. This will allow for a significant expansion of the existing South Bend Chocolate Cafe and Nicholas J. Salon, and new components associated with a South Bend Chocolate flagship location will be introduced: a Knute Rockne-themed meeting room, asecond-story children's play area, a chocolate manufacturing display area, and a candy, card and convenience store. Fourteen to twenty new jobs will be created. The South Bend Central Development Area Development Plan encourages the COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR EVALUATION OF ELECTRICAL AND HVAC SYSTEMS IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM HERRMAN & GOETZ SERVICES IN THE AMOUNT OF $S84 FOR THE SCOPE OF SERVICES PROPOSED 11 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area continue ... development of retail storefronts along this block of Michigan Street in the downtown core. In particular, the Commission has identified the desirability of destination retail that attracts new demographic sectors to shop downtown by providing unique experiences or services that can't be replicated elsewhere. The proposal seems to meet these criteria well. The proposal does not meet the Commission's offering price, set as the average o f two MAI appraisals at $480,000.00. However, the proposal addresses the discrepancy and asks the Commission to consider the exceptional investment that will be made in the building in weighing whether acceptance of its offer of $100,000 can be justified. The proposal also requests certain additional assistance from the Commission that will require additional discussion with the developer and coordination with other agencies. Staff requests the Commission's authorization to continue discussions with Mark Tarner, President of South Bend Chocolate Company, with the understanding that, since the offering price was not met, no contract may be executed before 30 days from the bid opening date has expired. We believe this will prove to be an excellent project oflong-term benefit to the downtown, and look forward to welcoming our first live- action M&M to Michigan Street. Ms. Greene noted that since there were no conforming bids for the Oscos site, the staff 12 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area continue ... needs further direction from the Commission to continue discussions with South Bend Chocolate Company in order to have a recommendation ready for the Commission at the January 20, 2006 meeting. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission authorized staff to perform additional review and discussion with South Bend Chocolate Company to provide sufficient information to substantiate any adjustment to the sale price and to identify acceptable terms and conditionsfor any potential future agreement between the Commission and the Developer . C. Sample-Ewing Development Area (1) Commission approval requested for Resolution No. 2207 determining Commission intent to pay certain expenses incurred for local public improvements in or serving the Sample-Ewing Development Area Allocation Area (South Bend Allocation Area No. 8) from the Sample- Ewing Allocation Area (South Bend Allocation Area No. 8) Special Fund. Mr. Inks noted that Resolution No. 2207 sets the appropriation amount at $750,000, which is anot-to-exceed amount. It also authorizes the advertising for a public hearing to be set at 10:00 a.m., January 20, 2006. COMMISSION AUTHORIZED STAFF TO PERFORM ADDITIONAL REVIEW AND DISCUSSION WITH SOUTH BEND CHOCOLATE COMPANY TO SUBSTANTIATE ANY ADJUSTMENT TO THE SALE PRICE AND TO IDENTIFY ACCEPTABLE TERMS AND CONDITIONS FOR ANY POTENTIAL FUTURE FINAL AGREEMENT BETWEEN THE COMMISSION AND DEVELOPER 13 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 6. NEW BUSINESS (CONT.) C. Sample-Ewing Development Area () continued... Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried the Commission approved Resolution No. 2207 determining Commission intent to pay certain expenses incurred for local public improvements in or serving the Sample- Ewing Development Area Allocation Area (South Bend Allocation Area No. 8) from the Sample-Ewing Allocation Area (South Bend Allocation Area No. 8) Special Fund. D. Airport Economic Development Area (1) Commission approval requested for Resolution No. 2211 determining the Commission's intent to pay certain expenses incurred for local public improvements in or serving the Airport Economic Development Area Allocation Area No. l from the Airport Economic Development Area Allocation Area No. l Special Fund. Mr. Inks noted that Resolution No. 2211 sets the appropriation amount at $17,000,000, which is anot-to-exceed amount. It also authorizes the advertising for a public hearing to be set at 10:00 a.m., January 20, 2006. Upon a motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried the Commission approved Resolution No. 2211 determining the Commission's intent to pay certain expenses incurred for local public improvements in or serving the Airport COMMISSION APPROVED RESOLUTION N0.2207 DETERMINING COMMISSION INTENT TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE SAMPLE-SWING DEVELOPMENT AREA ALLOCATION AREA (SOUTH BEND ALLOCATION AREA N0. S) FROM THE SAMPLE-SWING ALLOCATION AREA (SOUTH BEND ALLOCATION AREA No. 8) SPECIAL FUND COMMISSION APPROVED RESOLUTION N0.2211 DETERMINING THE COMMISSION'S INTENT TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE AIRPORT ECONOMIC DEVELOPMENT AREA ALLOCATION AREA N0. I FROM THE AIRPORT ECONOMIC DEVELOPMENT AREA ALLOCATION AREA N0. I SPECIAL FUND 14 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area () continued... Economic Development Area Allocation Area No. 1 from the Airport Economic Development Area Allocation Area No. Special Fund. (2) Filing of Resolution No. 2217 a resolution of the South Bend Redevelopment Commission appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2006, and ending December 31, 2006, including all outstanding claims and obligations, fixing a time when the same shall take effect and setting a Public Hearing on Resolution No. 2217 for 10:00 a.m., January 20, 2006. (Blackthorn Golf Course) Mr. Inks noted that Resolution No. 2217 appropriates money from Fund 610 for the Blackthorn Golf Course. The action requested today is to except the filing and set a public hearing on Resolution No. 2217 for 10:00 a.m., January 20, 2006. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission accepted for filing Resolution No. 2217 and set a public hearing on Resolution No. 2217 for 10:00 a.m., January 20, 2006. (3) Commission approval requested for Resolution No. 2226 related to acquisition of property in the Airport Economic Development Area. (2611 Linden and adjacent property) COMMISSION ACCEPTED FOR FILING RESOLUTION N0.2217AND SET A PUBLIC HEARING ON RESOLUTION N0.2217FOR 10:00 A.M., JANUARY 20, 2006 15 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area continue ... Mr. VUitwer explained that Resolution No. 2226 authorizes the sending of a purchase offer in the amount of $3,443 for properties at 2611 Linden Street and an adjacent parcel. The properties were added to the Airport Economic Development Area Acquisition List by Resolution No. 2064 on July 2, 2004. The offer of $3,443 is based on the average of two independent appraisals. The property is needed to complete the Bosch expansion project. Upon a motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried, the Commission approved Resolution No. 2226 related to acquisition of property in the Airport Economic Development Area. (2611 Linden and adjacent property) E. South Bend Medical Services District (1) Commission approval requested for Resolution No. 2208 determining the Commission's intent to pay certain expenses incurred for local public improvements in or serving the Downtown Medial Services District (DMSC Allocation Area) from the Downtown Medical Services District Special Fund (DMSD Allocation Fund) Mr. Inks noted that Resolution No. 2208 sets the appropriation amount at $1,600,000, a not-to-exceed amount. It also authorizes the advertising for a public hearing to be set at 10:00 a.m., January 20, 2006. COMMISSION APPROVED RESOLUTION N0.2226 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (2611 LINDEN AND ADJACENT PROPERTY) 16 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 6. NEW BUSINESS (CONT.) E. South Bend Medical Services District () continued... Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried the Commission approved Resolution No. 2208 determining the Commission's intent to pay certain expenses incurred for local public improvements in or serving the Downtown Medial Services District (DMSC Allocation Area) from the Downtown Medical Services District Special Fund (DMSD Allocation Fund) F. West Washington-Chapin Development Area (1) Commission approval requested for Resolution No. 2209 determining the Commission's intent to pay certain expenses incurred for local public improvements in or serving the West Washington-Chapin Allocation Area (South Bend Allocation Area No. 7) from the West Washington-Chapin Allocation Area (South Bend Allocation Area No. 7) Special Fund. Mr. Inks noted that Resolution No. 2209 sets the appropriation amount at $450,000, which is anot-to-exceed amount. It also authorizes the advertising for a public hearing to be set at 10:00 a.m., January 20, 2006. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2209 determining the Commission's intent to pay certain expenses incurred for local public improvements in or serving the West COMMISSION APPROVED RESOLUTION N0.2208 DETERMINING THE COMMISSION'S INTENT TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE DOWNTOWN MEDIAL SERVICES DISTRICT DMSC ALLOCATION AREA) FROM THE DOWNTOWN MEDICAL SERVICES DISTRICT SPECIAL FUND (DMSD ALLOCATION FUND) COMMISSION APPROVED RESOLUTION N0.2209 DETERMINING THE COMMISSION'S INTENT TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE WEST WASHINGTON-CHAPIN ALLOCATION AREA SOUTH BEND ALLOCATION AREA N0. ~) FROM THE WEST WASHINGTON-CHAPIN ALLOCATION AREA SOUTH BEND ALLOCATION 17 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 6. NEW BUSINESS (CONT.) F. West Washington/Chapin Development Area continued... Washington-Chapin Allocation Area (South Bend Allocation Area No. 7) from the West Washington-Chapin Allocation Area (South Bend Allocation Area No. 7) Special Fund. Mr. Hojnacki left the meeting at 9:18 a.m G. South Side Development Area (1) Commission approval requested for Resolution No. 2212 setting a public hearing on the appropriation of tax increment financing revenues from Allocation Area No. l fund for the payment of certain obligations and expenses related to the South Side Development Area Allocation Area No. l and other related matters. Mr. Inks noted that Resolution No. 2212 sets the appropriation amount at $100,000, which is anot-to-exceed amount. It also authorizes the advertising for a public hearing to be set at 10:00 a.m., January 20, 2006 Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2212 setting a public hearing on the appropriation of tax increment financing revenues from Allocation Area No. l fund for the payment of certain obligations and expenses related to the South Side Development Area Allocation Area No. 1 and other related matters. AREA No. 7) SPECIAL FUND COMMISSION APPROVED RESOLUTION N0.2212 SETTING A PUBLIC HEARING ON THE APPROPRIATION OF TAX INCREMENT FINANCING REVENUES FROM ALLOCATION AREA N0. I FUND FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THE SOUTH SIDE DEVELOPMENT AREA ALLOCATION AREA N0. 1 AND OTHER RELATED MATTERS 18 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 6. NEW BUSINESS (CONT.) G. South Side Development Area (2) Commission approval requested for Resolution No. 2213 setting a public hearing on the appropriation of tax increment financing revenues from Allocation Area No. 3 fund for the payment of certain obligations and expenses related to the South Side Development Area Allocation Area No. 3 and other related matters. Mr. Inks noted that Resolution No. 2213 sets the appropriation amount at $450,000, which is anot-to-exceed amount. It also authorizes the advertising for a public hearing to be set at 10:00 a.m., January 20, 2006 Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2213 setting a public hearing on the appropriation of tax increment financing revenues from Allocation Area No. 3 fund for the payment of certain obligations and expenses related to the South Side Development Area Allocation Area No. 3 and other related matters. H. Northeast Neighborhood Development Area There was no business for the Northeast Neighborhood Development Area. I. Other 7. PROGRESS REPORTS Mr. Inks summarized the staff and Commission's progress in 2006. In the Airport Economic Development Area the new Woodwind and Brasswind COMMISSION APPROVED RESOLUTION N0.2213 SETTING A PUBLIC HEARING ON THE APPROPRIATION OF TAX INCREMENT FINANCING REVENUES FROM ALLOCATION AREA N0.3 FUND FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THE SOUTH SIDE DEVELOPMENT AREA ALLOCATION AREA N0.3 AND OTHER RELATED MATTERS THERE WAS NO BUSINESS FOR THE NORTHEAST DEVELOPMENT AREA PROGRESS REPORTS 19 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 7. PROGRESS REPORTS (CONT.) warehouse was completed, along with Clocktower Center; improvements were made to Olive Road/Nimtz Parkway and Bendix Drive was relocated for the Bosch Project. In all, there was nearly $15,000,000 of private investment made in the development area along with $14,000,000 of infrastructure improvements. There were 230 jobs added in the AEDA. In the South Bend Central Development Area, the East Washington streetscape project is underway; the Commission acquired the three Colley properties (adult businesses); Phase I & II of the Main/Colfax garage repairs are complete; the Rink Riverside Printing property was acquired and the building demolished and offered for sale; and renovation has begun on the South Bend Community School Corporations building. In addition, at least eight new businesses have opened in the downtown: NoMa, Sean O'Casey's Irish Pub, Chicory Cafe, O'Sullivan's Crossing Nicholas J. Salon, Spurious Fugitive Gallery, Belmont Beverage and the Natural Way, and Sit n' Knit. In the Sample-Ewing Development Area we acquired the Arthur Ford properties (adult businesses) and completed the United Drive relocation to facilitate the future expansion of United Beverage. A total of $13,000,000 of private investment was made in the area. In addition, we awarded a $7.9M contract for the demolition of the South Bend Stamping Plant. We applied for and received a $9M Section 108 Loan approval. The CREeD district generates $950,000 in tax increment per year to finance improvements in the Studebaker/Oliver area. In the South Side Development Area, the Erskine Village development project is underway with the completion of several buildings and new businesses open, including Radio Shack, Starbucks, Logan's Roadhouse, Panera Bread, Bed, Bath & Beyond, Kohl's and DSW Shoe Warehouse. The Erskine Commons 20 South Bend Redevelopment Commission Regular Meeting -January 3, 2006 7. PROGRESS REPORTS (CONT.) development project is underway with site preparation for a shopping center to open in November 2006. Bids were opened for the West Ireland Road improvement project to improve Ireland from Michigan west to the clty llmlts. Property and R.O.W. acqulsltlon are also part of this project. The project cost, projected at $2M, will be financed by TIF. We are also in the bid stage for Erskine Park storm water project which will create a series of water features across Erskine Park Golf Course and allow for quality storm water management on the South Side. In the West Washington/ChapinDeve1opment Area, staff has been working with South Bend Heritage Foundation to complete the demolition of the Oil Express property and the Basic Machine properties. These cleared properties will be offered for residential use. Staff has also been working with South Bend Heritage Foundation to begin site work on the Natatorium reuse project. Mr. King noted the staff has been very busy in 2005 and commended them for their hard work. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is scheduled for Friday, January 20, 2006 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. King made a motion that the meeting be adjourned. Mr. Hojnacki seconded the motion and the meeting was adjourned at 9:30 a.m. Donald E. Inks, Director NEXT COMMISSION MEETING ADJOURNMENT Marcia I. Jones, President 21