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HomeMy WebLinkAbout02-17-06 Redevelopment Commission Minutes MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING February 17, 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. Hardie B lake, Jr. Mr. William Hojnacki Members Absent: Mr. Greg Downes, Secretary Legal Counsel: Mr. Shawn Peterson, Esq. Redevelopment Staff: Mr. Bill Schalliol, Economic Development Specialist Mrs. Cheryl Phipps, Recording Secretary Mr. Tim Williams, Economic Development Specialist Ms. Jennifer Laurent, Economic Development Specialist Others Present: Ms. Pam Paluszewski, Legal Dept. Ms. Autumn Aggeler, CB Richard Ellils Ms. Jamie Loo, South Bend Tribune Ms. Mariam Malkovsky, Bombay Boutique Mr. Malkovsky Ms. Christine Tirotta Mr. King noted a revised agenda for the February 17, 2006 meeting. The Revised Agenda differs from the original Agenda by the addition of items 6.B.(6), 6.B.(7) and 6.B.(8) related to putting the land at 121 S. St. Joseph Street up for bid. Mr. King made a motion that the Revised Agenda be accepted and approved. Mr. Hojnacki seconded the motion and the Commission approved the Revised Agenda dated February 17, 2006. 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, January 20, 2006. COMMISSION APPROVED THE REVISED AGENDA DATED FEBRUARY 17, 2006 Mr. King noted that the Minutes of the Regular South Bend Redevelopment Commission Regular Meeting -February 17, 2006 2. APPROVAL OF MINUTES (CONT.) continued... Meeting of January 20, 2006 are undergoing continuing review by legal counsel. He asked that the item be tabled. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission tabled the Minutes of the Regular Meeting of Friday, January 20, 2006. B. Approval of Minutes of the Regular Meeting of Friday, February 3, 2006. Mr. King noted that the Minutes of the Regular Meeting of February 3, 2006 are undergoing continuing review by legal counsel. He asked that the item be tabled. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission tabled the Minutes of the Regular Meeting of Friday, February 3, 2006. 3. APPROVAL OF CLAIMS COMMISSION TABLED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, JANUARY 20, 2006. COMMISSION TABLED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, FEBRUARY 3, 2006. Redevelopment Commission Claims submitted February 17, 2006 for approval. 324 AIRPORT AEDA Abonmarche Consultants Of Indiana L.L.C. 1,812.00 Ken Herce~ & Associates, Inc. 33,178.40 420 FUND TIF DISTRICT-SBCDA GENERAL CB Richard Ellis 1,298.20 Circle Lumber, Inc. 23.58 Rose Pest Solutions 85.00 Crowe Chizek 128,437.21 Harmon Inc. 480.00 Amoco Parking Systems 1,990.07 Meridian Title Corp 0.00 KRC Roofing & Sheet Metal, Inc. 680.00 2 South Bend Redevelopment Commission Regular Meeting -February 17, 2006 3. APPROVAL OF CLAIMS (CONT.) 424 FUND TIF SBCDA -BUILDING OPERATIONS CB Richard Ellis 1,722.71 $ 169,707.17 Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Claims submitted February 17, 2006, and ordered checks to be released 4. COMMUNICATIONS There Were n0 Communlcat10n5. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Public Hearing (1) Public Hearing on Resolution No. 2206 confirming Resolution No. 2199 designating the Douglas Road Economic Development Area, approving a Development Plan and conditions under which relocation payments will be made and establishing an allocation area for purposes of tax incremental financing within the Douglas Road Economic Development Area. Mr. Schalliol noted that the Public Hearing file is complete, containing: 1) a copy of the Notice of Hearing; 2) a copy of Resolution No. 2206; 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 27, 2006; 4) an affidavit from Richard COMMISSION APPROVED THE CLAIMS SUBMITTED FEBRUARY I ~, 2006, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS 3 South Bend Redevelopment Commission Regular Meeting -February 17, 2006 6. NEW BUSINESS (CONT.) A. Public Hearing ()continued... Andrysiak, Classified Manager of the Tri- CountyNews, that the Notice of Hearing was published in that newspaper on January 27, 2006; 5) a statement from Bill Schalliol, Project Manager, that affected property owners and neighborhood associations were notified o f the Public Hearing on January 31, 2006; 6) a statement from Bill Schalliol that the affected taxing units were notified of the public hearing; 7) a copy of the Statement of Tax Impact; 8) as of 10:00 a.m., February 17, 2006 there were no written remonstrances filed related to Resolution No. 2206. Mr. Peterson noted that designation of the Douglas Road Economic Development Area has been approved by the Area Plan Commission and by the South Bend Common Council. In designating the economic development area, the Commission must make several findings of fact which are set forth in the confirming resolution. Those findings are: 1) the development plan will promote significant opportunities for gainful employment for the citizens of South Bend; 2) the development plan will attract new business enterprise to the City of South Bend; 3) the development plan cannot be achieved without public involvement due to a lack of public improvements, including improvements to Douglas Road, the lack of local water and sewer service and the lack of development of major portions of said area; 4) the ordinary operation of private enterprise and regulatory processes have failed to correct the noted conditions; 5) the public 4 South Bend Redevelopment Commission Regular Meeting -February 17, 2006 6. NEW BUSINESS (CONT.) A. Public Hearing ()continued... health and welfare will be accomplished by the economic development plan; 6) the accomplishment of the plan will be of public utility and benefit because its implementation will result in the attraction of jobs, an increase in property tax base and improvement of the local transportation network; 7) the plan conforms to the other development and redevelopment plans for the City of South Bend; 8) and the plan is reasonable and appropriate when considered in relation to the purposes of the redevelopment statute. Ms. Jones opened the Public Hearing on Resolution No. 2206 for whoever wished to be heard. There was no one who wished to speak regarding Resolution No. 2206. Ms. Jones closed the public hearing for whatever action the Commission wished to take. (2) Commission approval requested for Resolution No. 2206. Upon a motion by Mr. Hojnacki, seconded by Mr. King and unanimously carried, the Commission approved Resolution No. 2206 confirming Resolution No. 2199 designating the Douglas Road Economic Development Area, approving a Development Plan and conditions under which relocation payments will be made and establishing an allocation area for purposes of tax incremental financing within the Douglas Road Economic Development Area. PUBLIC HEARING ON RESOLUTION N0.22O6 COMMISSION APPROVED RESOLUTION N0.22O6 CONFIRMING RESOLUTION N0.2199 DESIGNATING THE DOUGLAS ROAD ECONOMIC DEVELOPMENT AREA, APPROVING A DEVELOPMENT PLAN AND CONDITIONS UNDER WHICH RELOCATION PAYMENTS WILL BE MADE AND ESTABLISHING AN ALLOCATION AREA FOR PURPOSES OF TAX INCREMENTAL FINANCING WITHIN THE DOUGLAS ROAD ECONOMIC DEVELOPMENT AREA 5 South Bend Redevelopment Commission Regular Meeting -February 17, 2006 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) Commission approval requested for proposal for construction services in the South Bend Central Development Area. (Divide Esprit Decor space) Mr. Williams noted that a potential tenant for a portion of the former Esprit Decor space in the Michigan Street Shops has asked that the space be divided. Bombay Boutique would like to lease approximately 866 sft. The remaining available space would be approximately 1,530 sft. Each space would be leased at $11.50/sft. One proposal has been received for the construction work. Two others are expected. Staff requests authorization to proceed with anot-to-exceed cap of $35,000. Mr. King asked what the entire space was advertised for. Mr. Williams responded that it was offered at $10.50/sft. Mr. Hojnacki asked whether one large space or two small spaces are more marketable. Mr. Williams responded that the entire space has been vacant since September and Bombay Boutique is the only interest that has been expressed. Ms. Aggeler, CB Richard Ellis, the Commission's realtor, indicated that they receive more calls for smaller spaces downtown, on the order of the remaining 1,530 sft. 6 South Bend Redevelopment Commission Regular Meeting -February 17, 2006 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area () continued... Upon a motion by Mr. King, seconded by COMMISSION APPROVED THE REQUEST FOR Mr. Hojnacki and unanimously carried, the PROPOSALS FOR CONSTRUCTION SERVICES IN Comm1SS10n a roved the re nest for pp q THE SOUTH BEND CENTRAL DEVELOPMENT proposals for construction services in the AREA AND AUTHORIZED STAFF TO AWARD THE WORK FOR A COST NOT TO EXCEED $35,000 (119 South Bend Central Development Area and N. MICHIGAN ST., MICHIGAN ST. SHOPS, authorized staff to award the work for a cost FORMER ESPRIT DECOR SPACE) not to exceed $35,000. (119 N. Michigan St., Michigan St. Shops, former Esprit Decor space) (2) Commission approval requested for Letter of Intent from Bombay Boutique to lease 119 S. Michigan St. in the South Bend Central Development Area. (former Esprit Decor} Mr. Williams noted that final approval is requested for the Letter of Intent from Bombay Boutique to lease roughly 866 s$ in the Michigan Street Shops divided space at 119 S. Michigan St. A three-year lease is proposed with rent starting one month after occupancy at $830/month + CAM. Ms. Mariam Malkovsky stated that she is very excited to lease this space. She has a shop in Mishawaka and has been wanting to open one in downtown South Bend. This space is exactly what she has been looking for. Upon a motion by Mr. Hojnacki, seconded COMMISSION APPROVED THE LETTER OF INTENT by Mr. King and unanimously carried, the FROM BOMBAY BOUTIQUE TO LEASE 119 S. Comm1SS10n a roved the Letter of Intent MICHIGAN ST. IN THE SOUTH BEND CENTRAL pp DEVELOPMENT AREA. (FORMER ESPRIT DECOR) from Bombay Boutique to lease 119 S. 7 South Bend Redevelopment Commission Regular Meeting -February 17, 2006 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area continue ... Michigan St. in the South Bend Central Development Area. (former Esprit Decor) (3) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Appraisals, Art Mosaic Tile properties) Item 6.B.(3) was tabled until the March 3, ITEM 6.B.(3) was TaBLED 2006 meeting. (4) Commission approval requested for proposals for professional services in the South Bend Central Development Area. (Appraisals, NW corner St. Joseph St. and E. Jefferson Blvd.) Ms. Laurent noted that R.E. Pitts and R.E. McCloskey have submitted proposals to perform appraisals of the property at the northwest corner of St. Joseph and Jefferson Streets. The subject property is the vacant site that was formerly occupied by the St. Joseph and Jefferson municipal parking structure. The Redevelopment Commission has accepted the proposal of Gameday Centers for the development of the Air Rights above a proposed new parking facility. Staff has prepared a bid packet for the remaining partial interest in the site and updated appraisals are necessary. Since R.E. Pitts, and R.E. McCloskey did the appraisals for the Air Rights over the same space in 2005, they can update the appraisals most efficiently and cost effectively. The South Bend Redevelopment Commission Regular Meeting -February 17, 2006 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area () continued... value of the land can be easily established since it is based on the same per square foot value as the air rights. We do, however, need to have formal appraisals. The fee proposed by R.E. Pitts is $2,300. The fee proposed by R.E. McCloskey is $2,500. Staff recommends accepting both proposals. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the request for proposals for professional services in the South Bend Central Development Area and accepted the proposals from R.E. Pitts and R.E. McCloskey for the scope of services and fee proposed. (5) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Appraisal, E. Washington St.) Mr. Schalliol noted that Jerome Michaels has submitted a proposal to perform an appraisal on a portion of an alleyway within the East Washington Street Improvement Project Area. The fee for the work is $1,000. Staff recommends accepting the proposal. Mr. King asked why the appraisal is needed. Mr. Schalliol explained that the alley is 14 ft. wide. The City is purchasing private property to expand the alley width to accommodate two-way traffic. COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM R.E. PITTS AND R.E. MCCLOSKEY FOR THE SCOPE OF SERVICES AND FEE PROPOSED 9 South Bend Redevelopment Commission Regular Meeting -February 17, 2006 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area continue ... Upon a motion by Mr. Hojnacki, seconded COMMISSION APPROVED THE REQUEST FOR by Mr. Blake and unanimously carried, the PROPOSALS FOR PROFESSIONAL SERVICES IN THE Commission approved the request for SOUTH BEND CENTRAL DEVELOPMENT AREA proposals for professional services in the AND ACCEPTED THE PROPOSAL FROM JEROME E. MICHAELS FOR THE SCOPE OF SERVICES AND FEE South Bend Central Development Area and PROPOSED accepted the proposal from Jerome E. Michaels for the scope of services and fee proposed. (6) Commission approval requested for Resolution No. 2228 setting the fair reuse value of property in the South Bend Central Development Area. (NW Corner of St. Joseph St. and Jefferson Blvd.) Ms. Laurent noted that Resolution No. 2228 sets the offering price for a partial interest in the land at the northwest corner of St. Joseph St. and Jefferson Blvd. at $23,250. The Commission previously approved a proposal from Gameday Centers to develop the air rights over this property. Resolution No. 2228 sets a value on the ground rights with the restrictions that a parking facility with first floor retail be built, having 300-400 parking spaces and 12,000 sft of retail. The development must cover the entire .5 acres. Upon a motion by Mr. King, seconded by COMMISSION APPROVED RESOLUTION N0.2228 Mr. Hojnacki and unanimously carried, the SETTING THE FAIR REUSE VALUE OF PROPERTY IN Commission approved Resolution No. 2228 THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (NW CORNER OF ST. JOSEPH ST. AND setting the fair reuse value of property in the 7EFFERSOrr BLVD) South Bend Central Development Area. (NW Corner of St. Joseph St. and Jefferson Blvd.) 10 South Bend Redevelopment Commission Regular Meeting -February 17, 2006 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (7) Commission approval requested for Bid Specifications and Design Considerations for disposition of real estate and development of ground rights as a parking and retail facility supporting and subject to the use of the air rights as 150-175 unit residential condominium/hotel Development, including all necessary access and supporting easements, all located at 121 South St. Joseph Street, South Bend, Indiana. Mr. Peterson noted that this is the beginning of a process to see what interest there is in developing the second half of the parcel at 121 South St. Joseph St. (northwest corner of St. Joseph St. and Jefferson Blvd.). If there is interest, the Commission would not have to finance the construction of the parking garage promised to support the development of the air rights. This offering of the land provides the City with flexibility in how the land is developed. Mr. King asked if staff has been communicating with Gameday Centers about this offering. It is his understanding that Gameday Centers is interested in increasing its investment in the downtown by constructing the parking garage as well as the condominiums. Ms. Laurent responded that Mr. King's understanding is correct. Mr. King noted that this is a significant change of events from six months ago when a developer decided it wasn't interested in developing the air rights over a parking garage on the site. Now a developer is not 11 South Bend Redevelopment Commission Regular Meeting -February 17, 2006 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area continue ... only interested in developing the air rights, but building the garage as well. This is a great turnaround. Ms. Laurent noted that staff has been talking with Mr. Spillers of Gameday Centers about the requirement for retail on the first floor. Although he is from out of town, he is a civic minded person and understands the potential impact of his development on the downtown. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Bid Specifications and DeSlgn COnSlderatlOnS fOr d1SpOS1t10n Of real estate and development of ground rights as a parking and retail facility supporting and subject to the use of the air rights as 150-175 unit residential condominium/hotel Development, including all necessary access and supporting easements, all located at 121 South St. Joseph Street, South Bend, Indiana. (8) Commission authorization requested to Publish Notice of Intended Sale of Land in the South Bend Central Development Area with publication dates of February 24, 2006 and March 3, 2006 and receipt bids at 10:00 a.m., Friday, March 10, 2006. (NW Corner of St. Joseph St. and Jefferson Blvd.) COMMISSION APPROVED THE BID SPECIFICATIONS AND DESIGN CONSIDERATIONS FOR DISPOSITION OF REAL ESTATE AND DEVELOPMENT OF GROUND RIGHTS AS A PARKING AND RETAIL FACILITY SUPPORTING AND SUBJECT TO THE USE OF THE AIR RIGHTS AS 150-175 UNIT RESIDENTIAL CONDOMINIUM/HOTEL DEVELOPMENT, INCLUDING ALL NECESSARY ACCESS AND SUPPORTING EASEMENTS, ALL LOCATED AT 121 SOUTH ST. JOSEPH STREET, SOUTH BEND, INDIANA 12 South Bend Redevelopment Commission Regular Meeting -February 17, 2006 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area continue ... Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission authorized publication of the Notice of Intended Sale of Land in the South Bend Central Development Area with publication dates of February 24, 2006 and March 3, 2006 and receipt bids at 10:00 a.m., Friday, March 10, 2006. (NW Corner of St. Joseph St. and Jefferson Blvd.) C. Sample-Ewing Development Area There was no business in the Sample-Ewing Development Area D. Airport Economic Development Area (1) Commission approval requested for proposal for professional services in the Airport Economic Development Area. (Demolition, 23977 Brick Rd.) Mr. Williams noted that 23977 Brick Road is the last of four houses on Brick Road to be demolished. The homes were surrounded by industrial development and became voluntary acquisitions. The house is still occupied, but should be vacant by March 20. Four proposals were received for the demolition. B & J Excavating submitted a proposal to perform the demolition for a fee of $7,689. Bradberry Brothers submitted a proposal to perform the demolition for a fee of $7,650. Ritschard Brothers submitted a proposal to perform the demolition for a fee COMMISSION AUTHORIZED PUBLICATION OF THE NOTICE OF INTENDED SALE OF LAND IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA WITH PUBLICATION DATES OF FEBRUARY 24, 2006 AND MARCH 3, 2006 AND RECEIPT BIDS AT 10:00 A.M., FRIDAY, MARCH 10, 2006. (NW CORNER OF ST. JOSEPH ST. AND JEFFERSON BLVD.) 13 South Bend Redevelopment Commission Regular Meeting -February 17, 2006 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area () continued... of $8,984. Warner & Sons submitted a proposal to perform the demolition for a fee of $5,919. Staff recommends accepting the proposal from Warner & Sons, the lowest responsible bidder. Upon a motion by Mr. Hojnacki, seconded by Mr. King and unanimously carried, the Commission approved the request for proposals for professional services in the Airport Economic Development Area and accepted the proposal from Warner & Sons for the scope of services and fee proposed. E. South Bend Medical Services District There was no business in the South Bend Medical Services District F. West Washington-Chapin Development Area There was no business in the West Washington/ChapinDeve1opment Area G. South Side Development Area There was no business in the South Side Development Area H. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area I. Other COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM WARNER & SONS FOR THE SCOPE OF SERVICES AND FEE PROPOSED 14 South Bend Redevelopment Commission Regular Meeting -February 17, 2006 7. PROGRESS REPORTS Mr. King made special note of a couple of good things that happened at this meeting. One is that a successful store already inexistence elsewhere desires to move into downtown South Bend. And a developer who already committed to developing something downtown deciding he wants to invest more. Those are the kind of things you live for and are two very positive high points of this meeting. Mr. Peterson cautioned that sale of the ground rights to Gameday Centers is not a done deal. The public offering of the property is an acknowledgement that there may be interest in developing the parking garage and the Commission would like to know what interest there is in order to have the maximum amount of flexibility in moving forward. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is scheduled for Friday, March 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. Hojnacki seconded the motion and the meeting was adjourned at 10:43 a.m. Donald E. Inks, Director PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT Marcia I. Jones, President 15