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HomeMy WebLinkAbout01-20-06 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING January 20, 2006 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Mr. Karl King, Vice President Mr. Greg Downes, Secretary Mr. William Hojnacki Members Absent: Mr. Hardie Blake, Jr. Legal Counsel: Ms. Cheryl Greene, Esq. Mr. Shawn Peterson, Esq. Redevelopment Staff: Mr. Don Inks, Director Ms. Sharon T Kendall, Executive Director Mr. Robert Marhha, Assistant Director Mr. Bill Schalliol, Economic Development Specialist Mrs. Cheryl Phipps, Recording Secretary Mr. Tim Williams, Economic Development Specialist Mr. Andy Laurent, Economic Development Specialist Ms. Jennifer Laurent, Economic Development Specialist Mr. Nick Witwer, Economic Development Specialist Others Present: Ms. Pam Paluszewski, Legal Dept. Ms. Jamie Loo, South Bend Tribune Mr. Tim Firestone, Blackthorn Golf Course Mr. John Quickstad, Blackthorn Golf Course Mr. Geary Leathers, Blackthorn Golf Course Ms. Autumn Aggeler, CB Richard Ellis Mr. Randy Rompola, Baker & Daniels Mr. Alan Feldbaum, Attorney Mr. John Phair, Holladay Properties Mr. Paul Phair, Holladay Properties Ms. Nanette Tepe, Holladay Properties Ms. Janice Langland Mr. Mike Keen, Eco-Urban Collaborative Mr. Dean Bergeman, Eco-Urban Collaborative Ms. Gabrielle Robinson Ms. Martha Lewis Mr. Greg Frankhouser Ms. Marybeth Saunders South Bend Redevelopment Commission Regular Meeting -January 20, 2006 1. ROLL CALL Others Present: continued... Ms. Kathy Reddy White Ms. Jamie Wade Mr. Steve Ziolkowski Ms. Greene noted a revised agenda for the January 20, 2006 meeting. The item added was Item 6.F.(1) regarding the extension of time concerning temporary possession of property at 23977 Brick Road. Mr. King made a motion that the Revised Agenda be accepted and approved. Mr. Downes seconded the motion and the Commission approved the Revised Agenda dated January 20, 2006. 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, December 16, 2005. Mr. King asked that a correction be made to Item 6.B.(3). Staff was authorized to write, not just a general letter of support, but a letter to the University of Notre Dame supporting the Gameday Center's proposed project at St. Joseph and Jefferson Street. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, December 16, 2005, as corrected. B. Approval of Minutes of the Annual Organizational Meeting of Tuesday, January 3, 2006. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved the Minutes of the Annual Organizational Meeting of Tuesday, January 3, 2006. COMMISSION APPROVED THE REVISED AGENDA DATED JANUARY 2O, 2006 COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, DECEMBER 16, 2~~5, AS CORRECTED COMMISSION APPROVED THE MINUTES OF THE ANNUAL ORGANIZATIONAL MEETING OF TUESDAY, JANUARY 3, 2006 2 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 2. APPROVAL OF MINUTES C. Approval of Minutes of the Special Meeting of Tuesday, January 3, 2006. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved the Minutes of the Special Meeting of Tuesday, January 3, 2006. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE SPECIAL MEETING OF TUESDAY, JANUARY 3, 2006 Redevelopment Commission Claims submitted January 20, 2006 for approval. FUND 305 SBCDA 2003 BOND Walker Parking Consultants 5, 282.75 South Bend Tribune 91.08 414 SAMPLE-EWING GENERAL Plews Shadley Racher & Braun 1,255.39 420 FUND TIF DISTRICT-SBCDA GENERAL Meridian Title Corp 600.00 424 FUND TIF SBCDA -BUILDING OPERATIONS Ampco Parking Systems 9,085.00 CB Richard 150.00 428 FUND AIRPORT 2003 BOND Gates & Gates realty, LLC 400.00 Leroy A. Johnson, II & Vicky S. Johnson 1,970.00 $ 18,834.22 Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved the Claims submitted January 20, 2006, and ordered checks to be released 4. COMMUNICATIONS There were n0 CommunlcatlOnS. COMMISSION APPROVED THE CLAIMS SUBMITTED JANUARY 20, 2006, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS 3 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Receipt of Bids (1) Bid Opening for property located in the South Bend Central Development Area. (Rink Riverside site) Mr. Inks noted that two bids were received by the 10:00 a.m. deadline. The first was from Ralph Jones Drive Partners LP. Ms. Greene reviewed the bid submitted and noted that the Statement of Qualifications was properly executed, as was the Statement for Public Disclosure and the Affidavit of Non-Collusion. Ms. Greene noted that the Commission's offering price for the property per the bid specifications was $337,500. Ralph Jones Drive Partners' offer is in the amount of $30,000; therefore, the bid submitted by Ralph Jones Drive Partners is non-conforming. Mr. Inks opened the second bid received which was from Eco Urban Collaborative. Ms. Greene reviewed the bid submitted and noted that the Statement of Qualifications was properly executed, as was the Statement for Public Disclosure and the Affidavit of Non-Collusion. Eco Urban Collaborative has offered $1 for the property, which renders the bid non-conforming. Ms. Greene advised the Commission that neither bid submitted meets the Commission's bid specifications. Based on THERE WAS NO OLD BUSINESS 4 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) A. Receipt of Bids () continued... the requirements of I.C. 36.7.14-22, the Commission may enter into private negotiations to dispose of the property after the Commission has opened and considered the bids submitted in response to the Commission's offering. However, the Commission is prohibited from disposing of the property at a price less than the Commission's offering price for a period of thirty days after the opening of bids. Both bidders had representatives present who wished to make a presentation on their proposals. Mr. John Phair, Holladay Properties, made a presentation on the Ralph Jones Drive Partners' proposal. Mr. Phair noted that his company has been involved in development in South Bend for approximately thirty years and he believes that this proposal is the most significant it has made thus far. He hopes it will be the kick-start for what was begun on the East Race in the 1980s. The working name of project is "East Gateway". Ralph Jones Drive Partnership intends to build a combination hoteUcondo project having approximately 100 units. It also proposes constructing a 75,000 sft corporate office building (no tenant yet). Since parking is already a problem on the East Bank and any new development would increase that problem, Mr. Phair indicated the developer would require the City to build a new parking facility at the site of the current parking 5 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) A. Receipt of Bids () continued... garage located adjacent to the Commerce Center. That parking garage has become structurally unsound and is closed to parking. The developer would like to see the whole project tied together with a skyway system: the parking garage, Commerce Center, new office building, hoteUcondo site, and Century Center. Since Century Center is already connected to the Hall of Fame, the walkway would enable enclosed walking from the new projects around the Rink site to the heart of downtown. The proposal submitted by Ralph Jones Drive Partnership suggests that Colfax bridge and Colfax Street near the project area be "throttled down" to create a more pedestrian friendly environment, encouraging people who live/work on the east bank to make their way to the elements of downtown on the other side of the Colfax bridge. The proposed development envisions Colfax bridge with two lane traffic and a boulevard environment. The Ralph Jones Partnership proposal also includes the closing of Sycamore Street to through traffic, creating a major plaza which would be flanked by some retail across from the hoteUcondo development at the former Wharf Restaurant site. The total cost of Ralph Jones Drive Partnership's proposal would be approximately $SOMillion. Ten Million of 6 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) A. Receipt of Bids () continued... the $50 Million would be the partnership's development to occur on the Rink site. Ralph Jones Drive Partnership would expect to enter a development agreement with the City obligating the City to create a TIF district in order provide financing to build the parking structures. Ralph Jones Drive Partnership is willing to share the cost of a master planning effort for the East Bank area prior to moving forward with the project. Mr. King asked Mr. Phair to recap what the Ralph Jones Partnership will build new in connection with this proposal. Mr. Phair responded they would build an office building on the Rink site, retail offices across the plaza from the Rink site, the 100-unit Water's Edge hoteUcondo on the former Wharf Restaurant site, and a parking structure as part of that hoteUcondo project. The developer will also be starting a major expansion of the AMG office building soon, which it sees as an additional contribution in its overall development proposal. The Eco-Urban Collaborative consists of the partners Mike Keen and Dean Bergeman. Mr. Mike Keen began the presentation on behalf ofEco-Urban Collaborative. He read portions of two articles describing the importance of ecologically sensitive development and noting the example of Texas Instruments, in Dallas, Texas. Mr. Keen further stated that The Eco-Urban 7 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) A. Receipt of Bids () continued... Collaborative is a new and innovative entrepreneurial firm committed to building healthy communities, revitalizing our cities and restoring our environment through eco- effective, green urban development and redevelopment. Its partners believe that the City of South Bend can and should diversify its economic base by positioning itself as a heartland hub o f environment and commerce. Its goal is to provide environmentally friendly residential and commercial space to urban residents and businesses in order to demonstrate how market driven green development and commerce can be a key to urban revitalization and social and economic and environmental and community health. The Eco-Urban Collaborative plans to construct a mixed use urban neighborhood on what they are calling "Mill Race Isle". Mr. Dean Bergeman highlighted an article in a Notre Dame magazine that described South Bend as a "rust belt city trying to find its identity---90 miles from Chicago." He said that Eco-Urban Collaborative would like to help South Bend create an identity. Mr. Bergeman explained the details of the Eco-Urban Collaborative proposal. The proposed project would bring a total of 92 residents to a block and several million dollars of tax revenue to the City of South Bend. Phase I would be seven 2,400 sft row houses 8 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) A. Receipt of Bids () continued... facing south and overlooking the St. Joseph River and overlooking downtown South Bend, the dam, the Morris Performing Arts Center, Century Center---all quite spectacular. The seven units would be energy neutral, which the collaborative believes is truly sustainable. Phase II would be a two-story office building, which would be owner-occupied. In addition, the developer would build a two or three story building with nine 1,000 sft retail units on the first floor and eighteen residential units on the second floor. If a three-story building is constructed, the total number of residential units would increase to thirty-five. Each unit would have atwo-car garage, entry off the East Bank ~Ualkway, an open, contemporary floor plan, two to three bedrooms, roof gardens with "green" roofs to use storm water, and courtyards. The developer would use only the friendliest and healthiest materials for construction. The Eco-Urban Collaborative would keep Sycamore Street open. Mr. Bergeman said the Mill Race Isle project is intended to become an environmental model, an education laboratory for the Michiana region. It would make South Bend a model of sustainability and restoration. The Eco-Urban Collaborative has been partnering with faculty members from IUSB to identify an energy and education 9 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) A. Receipt of Bids () continued... demonstration grant from the State of Indiana which would allow them to demonstrate sustainability in action for local K-12 and college students, as well as to the broader public. It has also identified several tax credits and tax exemptions for which the green elements of their project will qualify future residents and businesses. If the Commission should accept the proposal of Eco-Urban Collaborative, it is requesting that the City of South Bend work with Fire Arts Incorporated to make its current temporary home a permanent one. Fire Arts is an invaluable resource in attracting what Richard Florida has identified as "the creative class." These are highly paid, creative professionals who are at the forefront of the post industrial economy. They prefer to live in vibrant urban centers and are crucial to the economic future and health of any region. In order to win over such residents, many cities are spending tens of thousands of dollars to attract artists to create cultural districts within their communities. To attract this group and to complement the arts centers downtown, they recommend that Colfax Avenue be renamed "Avenue of the Arts." Mr. King asked Mr. Bergeman to summarize exactly what the Econ-Urban Collaborative proposes to build. Mr. Bergeman responded that the collaborative would construct seven 10 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) A. Receipt of Bids () continued... residential row houses, sharing common walls, dense, three stories tall, 2,400 sft each. A two story office building with 5,000 sft on each floor. In Phase II they would build a three-story building on Sycamore Street with retail units on ground and residential living on the second and third floors. Mr. King asked if Phase I and Phase II reference a difference in timing? Mr. Bergeman responded that they did, depending upon financing. Developer currently has two of the seven units sold, with interest in three additional units. Both floors of the office building are ready to be leased by the owners. Mr. King asked what Mr. Bergeman expected the project schedule to be. Mr. Bergeman responded that, depending on the timing of the Commission's decision to accept the proposal, the developer could start construction this year and complete Phase I 12 months later. Phase II would start at the end of Phase I, in late 2007 or early 2008. Mr. King thanked Mr. Phair, Mr. Keen and Mr. Bergeman for accompanying their written proposals to the meeting and providing additional illustrated detail which will help in the Commission's deliberation. 11 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) A. Receipt of Bids (} continued... Mr. King made a motion to acknowledge receipt of the bids as complete, but non- conforming to the Commission's bid specifications, and referred the bids to staff for review and recommendation. Mr. Downes seconded the motion and it was unanimously carried. B. Public Hearings (1} Public Hearing on Resolution No. 2215 determining to appropriate 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. (Fund 424, Wayne Street Garage Retail Space} Mr. Inks explained that Resolutions No. 2215, 2216 and 2217 are all related to calendar year budgets that are being appropriated. He noted that the Public Hearing file for Resolution No. 2215 is complete and contains the following information: (1) a copy of the Notice of Hearing; (2) a copy of Resolution No. 2215; (3) an affidavit from Carol Smith, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on January 6, 2006; and (4) an affidavit from Richard Andrysiak, Classified Manager of the Tri- CountyNews, that the Notice of Hearing was COMMISSION ACKNOWLEDGED RECEIPT OF THE BIDS FROM RALPH JONES PARTNERSHIP AND ECO-URBAN COLLABORATIVE AS COMPLETE, BUT NON-CONFORMING, AND REFERRED THE BIDS TO STAFF FOR REVIEW AND RECOMMENDATION. 12 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) B. Public Hearings () continued... published in that newspaper on January 6, 2006. Ms. Jones opened the Public Hearing on Resolution No. 2215 for whoever wished to be heard. There was no one who wished to be heard concerning Resolution No. 2215. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (2) Commission approval requested for Resolution No. 2215. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved Resolution No. 2215 determining to appropriate 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. (3) Public Hearing on Resolution No. 2216 determining to appropriate monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2006, and PUBLIC HEARING ON RESOLUTION N0.221 S COMMISSION APPROVED RESOLUTION N0.221 S DETERMINING TO APPROPRIATE MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2006, AND ENDING DECEMBER 3 1, 206, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT. 13 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) B. Public Hearings continue ... ending December 31, 2006, including all outstanding claims and obligations, fixing a time when the same shall take effect. (Fund 425, Leighton Plaza Retail Space and Courtyard) Mr. Inks noted that the Public Hearing file for Resolution No. 2216 is complete and contains the following information: (1) a copy of the Notice of Hearing; (2) a copy of Resolution No. 2216; (3) an affidavit from Carol Smith, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on January 6, 2006; and (4) an affidavit from Richard Andrysiak, Classified Manager of the Tri-County News, that the Notice of Hearing was published in that newspaper on January 6, 2006. Ms. Jones opened the Public Hearing on Resolution No. 2216 for whoever wished to be heard. There was no one who wished to be heard concerning Resolution No. 2216. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (4) Commission approval requested for Resolution No. 2216. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved Resolution No. 2216 determining to appropriate monies for the purpose of defraying the expenses of certain PUBLIC HEARING ON RESOLUTION N0.2216 COMMISSION APPROVED RESOLUTION N0.2216 DETERMINING TO APPROPRIATE MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING JANUARY I, 2006, AND ENDING DECEMBER 3 1, 206, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, 14 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) B. Public Hearings () continued... 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. (Fund 425, Leighton Plaza Retail Space and Courtyard) (5) Public Hearing on Resolution No. 2217 determining to appropriate 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. (Blackthorn Golf Course) Mr. Inks noted that the Public Hearing file for Resolution No. 2217 is complete and contains the following information: (1) a copy of the Notice of Hearing; (2) a copy of Resolution No. 2217; (3) an affidavit from Carol Smith, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on January 6, 2006; and (4) an affidavit from Richard Andrysiak, Classified Manager of the Tri-County News, that the Notice of Hearing was published in that newspaper on January 6, 2006. Ms. Jones opened the Public Hearing on Resolution No. 2217 for whoever wished to speak. There was no one who wished to speak concerning Resolution No. 2217. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT. (FUND 425, LEIGHTON PLAZA RETAIL SPACE AND COURTYARD) PUBLIC HEARING ON RESOLUTION N0.2217 15 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) B. Public Hearings (6) Commission approval requested for Resolution No. 2217. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved Resolution No. 2217 determining to appropriate 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. (Blackthorn Golf Course) (7) Public Hearing on Resolution No. 2218, a supplemental appropriation resolution of the South Bend Redevelopment District. (Sample-Ewing Development Area) Mr. Inks noted that Resolutions No. 2218 through 2224 appropriate tax increment finance funds for use in their TIF districts. He noted that the Public Hearing file for Resolution No. 2218 is complete and contains the following: (1) A copy of Resolution No. 2207 determining to make the appropriation and setting the public hearing on Resolution No. 2218; (2) A copy of the Notice of Hearing; (3) A copy of Resolution No. 2218, the subject of the public hearing; (4) An affidavit from Carol Smith, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on January 6, 2006; (5) An affidavit from Richard Andrysiak, Classified Manager of the Tri- County News, that the Notice of Hearing was COMMISSION APPROVED RESOLUTION N0.2217 DETERMINING TO APPROPRIATE MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING JANUARY I, 2006, AND ENDING DECEMBER 3 I, 2006, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT (BLACKTHORN GOLF COURSE) 16 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) B. Public Hearings continue ... published in that newspaper on January 6, 2006. Ms. Jones opened the Public Hearing on Resolution No. 2218 for whoever wished to be heard. There was no one who wished to be heard concerning Resolution No. 2218. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (8) Commission approval requested for Resolution No. 2218. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved Resolution No. 2218, a supplemental appropriation resolution of the South Bend Redevelopment District. (Sample-Ewing Development Area) (9) Public Hearing on Resolution No. 2219, a supplemental appropriation resolution of the South Bend Redevelopment District. (Downtown Medical Services District) Mr. Inks noted that the Public Hearing file for Resolution No. 2219 is complete and contains the following: (1) A copy of Resolution No. 2208 determining to make the appropriation and setting the public hearing on Resolution No. 2219; (2) A copy of the Notice of Hearing; (3) A copy of Resolution No. 2219, the subject of the public hearing; (4) An affidavit from Carol Smith, Advertising Director of the South Bend PUBLIC HEARING ON RESOLUTION N0.221 S COMMISSION APPROVED RESOLUTION N0.221 S, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE SOUTH BEND REDEVELOPMENT DISTRICT. (SAMPLE-SWING DEVELOPMENT AREA) 17 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) B. Public Hearings continue ... Tribune, that the Notice of Hearing was published in that newspaper on January 6, 2006; (5) An affidavit from Richard Andrysiak, Classified Manager of the Tri- CountyNews, that the Notice of Hearing was published in that newspaper on January 6, 2006. Ms. Jones opened the Public Hearing on Resolution No. 2219 for whoever wished to be heard. There was no one who wished to be heard concerning Resolution No. 2219. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (10) Commission approval requested for Resolution No. 2219. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved Resolution No. 2219, a supplemental appropriation resolution of the South Bend Redevelopment District. (Downtown Medical Services District) (11) Public Hearing on Resolution No. 2220, a supplemental appropriation resolution of the South Bend Redevelopment District. (West Washington/Chapin Development Area) Mr. Inks noted that the Public Hearing file for Resolution No. 2220 is complete and contains the following: (1) A copy of Resolution No. 2209 determining to make the PUBLIC HEARING ON RESOLUTION N0.2219 COMMISSION APPROVED RESOLUTION N0.2219, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE SOUTH BEND REDEVELOPMENT DISTRICT. (DOWNTOWN MEDICAL SERVICES DISTRICT) 18 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) B. Public Hearings (11) continued... appropriation and setting the public hearing on Resolution No. 2220; (2) A copy of the Notice of Hearing; (3) A copy of Resolution No. 2220, the subject of the public hearing; (4) An affidavit from Carol Smith, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on January 6, 2006; (5) An affidavit from Richard Andrysiak, Classified Manager of the Tri- CountyNews, that the Notice of Hearing was published in that newspaper on January 6, 2006. Ms. Jones opened the Public Hearing on Resolution No. 2220 for whoever wished to be heard. There was no one who wished to be heard concerning Resolution No. 2220. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (12) Commission approval requested for Resolution No. 2220. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved Resolution No. 2220, a supplemental appropriation resolution of the South Bend Redevelopment District. (Nest Washington/Chapinbevelopment Area) PUBLIC HEARING ON RESOLUTION N0.2220 COMMISSION APPROVED RESOLUTION N0.2220, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE SOUTH BEND REDEVELOPMENT DISTRICT. (WEST WASHINGTONICHAPIN DEVELOPMENT AREA) 19 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) B. Public Hearings (13) Public Hearing on Resolution No. 2221, a supplemental appropriation resolution of the South Bend Redevelopment District. (South Bend Central Development Area) Mr. Inks noted that the Public Hearing file for Resolution No. 2221 is complete and contains the following: (1) A copy of Resolution No. 2210 determining to make the appropriation and setting the public hearing on Resolution No. 2221; (2) A copy of the Notice of Hearing; (3) A copy of Resolution No. 2221, the subject of the public hearing; (4) An affidavit from Carol Smith, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on January 6, 2006; (5) An affidavit from Richard Andrysiak, Classified Manager of the Tri- CountyNews, that the Notice of Hearing was published in that newspaper on January 6, 2006. Ms. Jones opened the Public Hearing on Resolution No. 2221 for whoever wished to be heard. There was no one who wished to be heard concerning Resolution No. 2221. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (14) Commission approval requested for Resolution No. 2221. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved Resolution No. 2221, PUBLIC HEARING ON RESOLUTION N0.2221 COMMISSION APPROVED RESOLUTION N0.2221, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE SOUTH BEND REDEVELOPMENT 20 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) B. Public Hearings (14) continued... a supplemental appropriation resolution of the South Bend Redevelopment District. (South Bend Central Development Area) (15) Public Hearing on Resolution No. 2222, a supplemental appropriation resolution of the South Bend Redevelopment District. (Airport Economic Development Area) Mr. Inks noted that the Public Hearing file for Resolution No. 2222 is complete and contains the following: (1) A copy of Resolution No. 2211 determining to make the appropriation and setting the public hearing on Resolution No. 2222; (2) A copy of the Notice of Hearing; (3) A copy of Resolution No. 2222, the subject of the public hearing; (4) An affidavit from Carol Smith, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on January 6, 2006; (5) An affidavit from Richard Andrysiak, Classified Manager of the Tri- CountyNews, that the Notice of Hearing was published in that newspaper on January 6, 2006. Ms. Jones opened the Public Hearing on Resolution No. 2222 for whoever wished to be heard. There was no one who wished to be heard concerning Resolution No. 2222. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. DISTRICT. (SOUTH BEND CENTRAL DEVELOPMENT AREA) PUBLIC HEARING ON RESOLUTION N0.2222 21 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) B. Public Hearings (16) Commission approval requested for Resolution No. 2222. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved Resolution No. 2222, a supplemental appropriation resolution of the South Bend Redevelopment District. (Airport Economic Development Area) (17) Public Hearing on Resolution No. 2223, appropriating 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 Mr. Inks noted that Allocation Area No. 1 of the South Side Development Area is the large retail area. Mr. Inks noted that the Public Hearing file for Resolution No. 2223 is complete and contains the following: (1) A copy of Resolution No. 2212 determining to make the appropriation and setting the public hearing on Resolution No. 2223; (2) A copy of the Notice of Hearing; (3) A copy of Resolution No. 2223, the subject of the public hearing; (4) An affidavit from Carol Smith, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on January 6, 2006; (5) An affidavit from Richard Andrysiak, Classified Manager of the Tri- CountyNews, that the Notice of Hearing was published in that newspaper on January 6, 2006. COMMISSION APPROVED RESOLUTION N0.2222, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE SOUTH BEND REDEVELOPMENT DISTRICT. (AIRPORT ECONOMIC DEVELOPMENT AREA) 22 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) B. Public Hearings (18) continued... Ms. Jones opened the Public Hearing on Resolution No. 2223 for whoever wished to be heard. There was no one who wished to be heard concerning Resolution No. 2223. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (18) Commission approval requested for Resolution No. 2223. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved Resolution No. 2223 appropriating tax increment financing revenues from Allocation Area No. 1 Fund for the payment of certain obligations and expenses related to the South Side Development Area Allocation Area No. 1 (19) Public Hearing on Resolution No. 2224, appropriating 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 Mr. Inks noted that Allocation Area No. 3 of the South Side Development Area is the smaller retail area, the former Scottsdale Mall site. Mr. Inks noted that the Public Hearing file for Resolution No. 2224 is complete and contains the following: (1) A copy of Resolution No. 2213 determining to make the PUBLIC HEARING ON RESOLUTION N0.2223 COMMISSION APPROVED RESOLUTION N0.2223 APPROPRIATING 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 No. l 23 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) B. Public Hearings (19) continued... appropriation and setting the public hearing on Resolution No. 2224; (2) A copy of the Notice of Hearing; (3) A copy of Resolution No. 2224, the subject of the public hearing; (4) An affidavit from Carol Smith, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on January 6, 2006; (5) An affidavit from Richard Andrysiak, Classified Manager of the Tri- CountyNews, that the Notice of Hearing was published in that newspaper on January 6, 2006. Ms. Jones opened the Public Hearing on Resolution No. 2224 for whoever wished to be heard. There was no one who wished to be heard concerning Resolution No. 2224. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (20) Commission approval requested for Resolution No. 2224. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved Resolution No. 2224 appropriating 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. PUBLIC HEARING ON RESOLUTION N0.2224 COMMISSION APPROVED RESOLUTION N0.2224 APPROPRIATING 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 No. 3 24 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) C. Housing There was no Housing business. D. South Bend Central Development Area (1) Commission approval requested for proposal for roof repair at 237 N. Michigan St. in the South Bend Central Development Area. (LaSalle Hotel) Mr. Williams noted that the LaSalle Hotel had a minor roof leak that had to betaken care of in order to prevent further damage to the building. Staff requested a proposal from KRC Roofing & Sheet Metal, Inc. to repair the leak. KRC, under the direction of Bob Humbarger as consultant, has done repairs to the roof, but this leak has developed since the fall of 2005. The fee for the work is $680. Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried, the Commission approved the request for proposal for roof repair in the South Bend Central Development Area and accepted the proposal from KRC for the scope of services and fee proposed. (2) Commission approval requested for First Amendment to Lease Agreement in the South Bend Central Development Area. (123 S. Michigan St., CORT Furniture Rental) Mr. Williams noted that the CORT Furniture lease has expired. Staff has negotiated terms of and amendment to the lease for five years at a graduated rate. In the first year the COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR ROOF REPAIR IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM KRC FOR THE SCOPE OF SERVICES AND FEE PROPOSED 25 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area () continued... monthly rent will be $1,211.25 ($11.40/s$) month. In the fifth year the monthly rent will be $1,453.50. These rates are higher than their current rent. Staff recommends approval. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the First Amendment to Lease Agreement in the South Bend Central Development Area. (123 S. Michigan St., CORT Furniture Rental) (3) Commission approval requested for First Addendum to Lease in the South Bend Central Development Area. (131 S. Michigan St., David Van Hoey, d/b/al Quizno's Classic Subs) Mr. Williams noted that Quizno's wishes to exercise its option to renew its lease for a four-year term at $1,446.15 per month ($11.43/sft). Staff recommends approving the terms of the lease. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved the First Addendum to Lease in the South Bend Central Development Area. (131 S. Michigan St., David Van Hoey, d/b/a/ Quizno's Classic Subs) COMMISSION APPROVED THE FIRST AMENDMENT TO LEASE AGREEMENT IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (123 S. MICHIGAN ST., CORT FURNITURE RENTAL) COMMISSION APPROVED THE FIRST ADDENDUM TO LEASE IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (131 S. MICHIGAN ST., DAVID VAN HOEY, D/B/A/ QUIZNO~S CLASSIC SUB s) 26 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (4) Staff report on disposition of property in the South Bend Central Development Area. Ms. Laurent noted that in 2005 the Commission offered property at 128 S. Michigan Street for sale through the public bid process. Bids were received and opened at a public meeting on December 16, 2005 with only one bid submitted. Due to the fact that South Bend Chocolate Company's bid did not meet the Commission's offering price, the bid was not awarded at that time On January 3 a preliminary staff report was presented summarizing the proposal from the South Bend Chocolate Company to purchase and rehab the former Osco's building at 128 S. Michigan St. The Commission instructed staff to perform additional review and to have discussion with South Bend Chocolate Company concerning the proposal that would support disposition of the property at the price requested by the developer. After appropriate review of the proposal and discussion with the developer, staff recommends disposition of the property to South Bend Chocolate Company for $100,000. The Commission's offering price of $480,000, based on the average of two MAI appraisals, is by statute, negotiable by this date. In the local market, comparable property sales for a building like this one are difficult to find and rely on. The building's raw form and size,11,000 sft, will require considerable investment and creativity to 27 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area () continued... bring it to the high standard the Commission and the public would like. Mr. Tarner has offered $100,000 for the fee simple interest in the property, based on his analysis of the expected risk and return on investment. Ms. Laurent also noted that the buildings roof is in need of significant repair. That and other maintenance issues would present significant holding costs to the Commission if it were to retain ownership. A reasonable time of exposure has been allowed in the open market with an aggressive marketing program, and Mr. Tarner's offer has been the only serious expression of interest in the building. Therefore, there is a truly defined market value of the property: that set by the sole willing buyer at this point in time. The staff is also pleased with the quality of the South Bend Chocolate Company project and sees many long term benefits to be realized as a result of this signature development. The Commission is now permitted to dispose of the property at a price less than the original offering price because more than thirty days have lapsed since the bid opening on December 26, 2005. Staff recommends disposing of 128 S. Michigan St. to South Bend Chocolate Co. for the sum of $100,000. A Contract for Sale of Land is being drafted and approval of the terms of sale would authorize staff to present this contract in final form at a subsequent meeting. 28 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area () continued... Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission accepted Ms. Laurent's report, considering it to be a Finding of Fact by the Commission, and in light of those facts and in light of the content of the proposal from South Bend Chocolate Company (the caliber, size and scope of the project), the Commission adjusted the offering price for 128 S. Michigan Street to $100,000. E. Sample-Ewing Development Area (1) Staff report on acquisition of property in the Sample-Ewing Development Area. (1010 Prairie Ave, Huckins Tool & Die) Mr. Laurent noted that the Commission authorized a purchase offer to be sent to Mr. Huckins for his property on Prairie Avenue in the amount of $10, based on the average of the appraised value, the environmental condition of the property, and the estimated clean-up costs of the property. The average appraised value of the property, if clean, was $139,000. Staff received a counter offer of $105,000 from Mr. Huckins, with the property "as is." We requested that language be added for assignment of any insurance proceeds, those to be assigned to the City of South Bend and the Redevelopment Commission. As part of the counter offer, of the $105,000, $41,000 will go toward payment of delinquent property taxes. And, COMMISSION ACCEPTED MS. LAURENT'S REPORT, CONSIDERING IT TO BE A FINDING OF FACT BY THE COMMISSION, AND IN LIGHT OF THOSE FACTS AND IN LIGHT OF THE CONTENT OF THE PROPOSAL FROM SOUTH BEND CHOCOLATE COMPANY THE CALIBER, SIZE AND SCOPE OF THE PROJECT), THE COMMISSION ADJUSTED THE OFFERING PRICE FOR 12g S. MICHIGAN STREET To $100,000. 29 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) E. Sample-Ewing Development Area () continued... there is approximately $38,000 worth of machinery and equipment that will be left behind for the Commission to sell. Staff feels that this is a reasonable counter offer from Mr. Huckins. The acquisition of this property is necessary to complete the goals of the Studebaker/Oliver redevelopment strategy. Staff recommends approval of the counter offer. Mr. King asked the schedule is to wrap up this deal. Mr. Laurent responded that staff should be able to close on the property with Mr. Huckins within 3 0 days. Our next step would be to get Engineering to write demolition specifications. Meanwhile, we'll try to sell the equipment. We have almost wrapped up the financing to have money available to tear down these buildings. This week we received notification from the State Historic Preservation office that we may use federal money to acquire and tear down all the remaining Studebaker buildings in Area A. If we can close on the Huckins property in 30 days, he hopes to complete demolition by the end of the year. Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried, the Commission approved the counter offer in the amount of $105,000 for property in the Sample-Ewing Development Area, with the addition of language assigning additional insurance proceeds to the City of South Bend and Redevelopment Commission. (1 O l 0 Prairie Ave, Huckins Tool & Die) COMMISSION APPROVED THE COUNTER OFFER IN THE AMOUNT OF $1 OS,000 FOR PROPERTY IN THE SAMPLE-SWING DEVELOPMENT AREA, WITH THE ADDITION OF LANGUAGE ASSIGNING ADDITIONAL INSURANCE PROCEEDS TO THE CITY OF SOUTH BEND AND REDEVELOPMENT COMMISSION. (IOIO PRAIRIE AVE, HUCKINS TOOL & DIE) 30 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) F. Airport Economic Development Area (1) Commission approval requested for extension of time concerning temporary possession of property located at 23977 Brick Road. Ms. Greene noted that the purchase of 23977 Brick Road was an opportunistic purchase for the Commission. The Commission has no immediate use for the property and permitted the prior owners to remain in temporary possession of the property subsequent to closing, subject to the appropriate indemnification agreement prepared by Legal. The former owners have advised that they need a little more time to finalize their move from the property. The extension of time requested will allow them to remain in possession of the property through March 15, 2006. Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried, the Commission approved the extension of time concerning temporary possession of property located at 23977 Brick Road. G. South Bend Medical Services District H. West Washington-Chapin Development Area I. South Side Development Area (1) Commission approval requested for Resolution No. 2225 amending Resolution No. 2074, the Erskine Commons bond resolution. COMMISSION APPROVED THE EXTENSION OF TIME CONCERNING TEMPORARY POSSESSION OF PROPERTY LOCATED AT 23977 BRICK ROAD 31 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) I. South Side Development Area () continued... Mr. Rompola explained that this resolution is related to the financing for the Erskine Commons project. Resolution No. 2074 authorized the issuance of tax increment revenue bonds that would be for the public road improvements adjacent to the Erskine Commons site. The Commission also approved a pledge resolution that pledged some of the TIF for the financing that will be done for the improvements on the site. Those proceeds were loaned to the developer for their work. Given some of the delays, that financing was closed in 2005. We're now at the point where we're ready to proceed with the road improvements. We need to proceed with the tax increment revenue financing. Resolution No. 2225 is almost identical to Resolution No. 2074 which allowed for a TIF bond up to $2.8M with a maximum term of twenty years. That had a maximum interest rate of 7%. The bonds would be differently issued with respect to other TIF revenue bonds. These bonds would be issued on a variable rate basis, meaning that the interest rate would float each week. The benefit of that is that during the time that the project is being completed and there's no tax increment being generated, it allows the interest rate on the bonds to be much lower, probably in the range of 2 to 31/2%. A letter of credit is needed for this type of bond as a security instrument. The developer has agreed to provide the letter of credit. The bonds would be issued pursuant to a trust indenture. 32 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) I. South Side Development Area () continued... The principal and term is the same in the amended and restated resolution. The maximum interest rate has been raised to 8%, given current conditions. The resolution also acknowledges the agreement between the Commission and developer that if TIF is ever not sufficient to make the bond payment, the developer will make up the difference. Mr. Inks noted that we have already taken bids for the widening of Ireland Road, just west of Michigan Street. We are nearly ready to award the bid. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved Resolution No. 2225 amending Resolution No. 2074, the Erskine Commons bond resolution. J. Northeast Neighborhood Development Area There was no business for the Northeast Neighborhood Development Area. K. Other (1) Commission approval requested to set a Public Hearing for 10:00 a.m. on February 17, 2006 regarding Resolution No. 2206 designating and declaring the Douglas Road Economic Development Area, approving an Economic Development Plan, and establishing an allocation area for purposes of tax incremental financing and authorizing publication of a Notice of COMMISSION APPROVED RESOLUTION N0.2225 AMENDING RESOLUTION N0.2O74, THE ERSKINE COMMONS BOND RESOLUTION 33 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 6. NEW BUSINESS (CONT.) K. Other () continued... Hearing on February 3, 2006 regarding Resolution No. 2206. Mr. Schalliol noted that staff has been working on the designation of a Douglas Road Economic Development Area. The Commission approved Resolution No. 2199 designating the area at its December 2, 2005 meeting. The Area Plan Commission approved its resolution on December 20. On January 23 the Common Council will consider its resolution to designate the area as an economic development area. The final step in the process will be to hold a Public Hearing on February 17, 2006. Staff requests permission to publish the Notice of Hearing on February 3, 2006 and set the Public Hearing for 10:00 a.m., February 17, 2006. Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried, the Commission set a Public Hearing at 10:00 a.m., February 17, 2006 on Resolution No. 2206 and authorized staff to publish the Notice of Hearing on February 3, 2006. 7. PROGRESS REPORTS Mr. Inks reported that he has completed the statutorily required annual report of the Redevelopment Commission which is due by the end of January. That report will be delivered the Common Council, as required. We will supplement that report with additional information that the Commissioners requested and provide the expanded report at a later date. COMMISSION SET A PUBLIC HEARING AT 10:00 A.M., FEBRUARY 17, 2006 ON RESOLUTION N0. 2206 AND AUTHORIZED STAFF TO PUBLISH THE NOTICE OF HEARING ON FEBRUARY 3, 2006 PROGRESS REPORTS 34 South Bend Redevelopment Commission Regular Meeting -January 20, 2006 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is scheduled for Friday, February 3, 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. Downes seconded the motion and the meeting was adjourned at 11:05 a.m. Donald E. Inks, Director NEXT COMMISSION MEETING ADJOURNMENT Marcia I. Jones, President 35