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HomeMy WebLinkAbout03-03-06 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING March 3, 2006 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Ms. Marcia Jones, President Mr. Karl King, Vice President Mr. Hardie B lake, Jr. Mr. William Hojnacki Mr. Greg Downes, Secretary Mr. Shawn Peterson, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Robert Mathia, Assistant Director Mr. Bill Schalliol, Economic Development Specialist Mr. Timothy Williams, Economic Development Specialist Mr. Andrew Laurent, Economic Development Specialist Ms. Jennifer Laurent, Economic Development Specialist Mr. Nicholas Witwer, Economic Development Specialist Others Present: Ms. Pam Paluszewski, Legal Dept. Ms. Jamie Loo, South Bend Tribune Mr. John Phair, Holladay Corporation Mr. Paul Phair, Holladay Corporation Mr. Frank Perri, Holladay Corporation Ms. Charlotte Sobel, South Bend Heritage Foundation Ms. Mariam Malkovsky, Bombay Boutique Mr. Malkovsky Ms. Christine Tirotta Mr. Joshua Huen Mr. King noted a Revised Agenda for the March 3, 2006 meeting. The Revised Agenda differs from the original Agenda by the addition of Item 2.C., Minutes of the February 17, 2006 meeting, and Item 6.F.(1), related to appraisal proposals in the South Side Development Area. South Bend Redevelopment Commission Regular Meeting -March 3, 2006 1. ROLL CALL (CONT.) 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 March 3, 2006. 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, January 20, 2006. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, January 20, 2006. B. Approval of Minutes of the Regular Meeting of Friday, February 3, 2006. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, February 3, 2006. C. Approval of Minutes of the Regular Meeting of Friday, February 17, 2006. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, February 17, 2006. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE REVISED AGENDA DATED MARCH 3, 2006 COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, JANUARY 20, 2006 COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, FEBRUARY 3, 2006 COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, FEBRUARY I7, 2006 Redevelopment Commission Claims submitted March 3, 2006 for approval. FUND 305 SBCDA 2003 BOND Jerome E. Michaels $ 1,000.00 414 SAMPLE-EWING GENERAL Hull & Associates, Inc. 66.00 2 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 3. APPROVAL OF CLAIMS (CONT.) 420 FUND TIF DISTRICT-SBCDA GENERAL CB Richard Ellis Rose Pest Solutions 422 FUND WEST WASHINGTON South Bend Heritage Foundation 424 FUND TIF SBCDA -BUILDING OPERATIONS Ampco Parking Systems NIPSCO CB Richard Ellis 428 FUND AIRPORT 2003 BOND DLZ Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted March 3, 2006, and ordered checks to be released. 4. COMMUNICATIONS A. Communication from Robert Asplund related to disposition of the Rink Riverside site. Mr. Inks read into the record the Communication from Robert Asplund. South Bend Redevelopment Commission 1200 County-City Building 227 W. Jefferson Blvd. South Bend, IN 46601 I read with interest the article in the Ti^ibune on Jan. 21 on the proposals for the Rink site. As a retired teacher of Environmental Sciences, I was especially enamored by the proposal of the Eco- 492.42 87.00 74,502.45 13,410.51 358.60 667.05 3,024.00 $ 93,608.03 COMMISSION APPROVED THE CLAIMS SUBMITTED MARCH 3, 2006, AND ORDERED THE CHECKS TO BE RELEASED 3 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 4. COMMUNICATIONS (CONT.) A. Communication from Robert Asplund continue ... Urban Collaborative. Many of the features of that proposal were consistent with some of my readings on the necessary future directions of urban renewal. With all indications pointing to severe energy shortages in the near future, ideas which address that in different ways should receive our highest attention, even at the expense of short term dollar issues if necessary. Pedestrian related issues will become most important. I remember a comment by a large city mayor in which he said that "cities that are most friendly to cars are least friendly to people. " Also, in a previous meeting with Mayor Luecke on a different issue, while looking out of his office window at the number of energy absorbing flat black roofs, I commented on the need for a program that would addNess rooftop gardens. Both of these issues are addressed in the above mentioned proposal. 1 urge you to give these ideas a priority in your decisions. Robert Asplund 32732 Early Rd. New Carlisle, IN 46552 5. OLD BUSINESS There was no Old Business. THERE WAS NO OLD BUSINESS 4 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS A. South Bend Central Development Area (1) Staff report on disposition of property in the South Bend Central Development Area. (Rink Riverside site) Mr. King asked that Item 6.A.(1) be moved to the end of New Business so as to not unnecessarily delay those in attendance for the other New Business items. There was no objection and Item 6.A.(1) was so moved. (2) Commission approval requested for Commercial Lease for 119 S. Michigan St. in the South Bend Central Development Area. (Bombay Boutique) Mr. Williams noted that the Commission approved a Letter of Intent from Bombay Boutique at its February 17, 2006 meeting. The terms of that Letter of Intent are proposed to be revised to account for a larger rental space than previous estimates had indicated. The proposed terms are reflected in the lease presented to the Commission. The lease rents 1209 sft of the Michigan Street Shops at 119 S. Michigan St. to Bombay Boutique for a term of five years. The rent will start at $830/mo. + CAM for the first two and a half years and then go up to $1,159/mo. + CAM for the remaining two and a half years. Mr. King asked about the time table to divide the space. Mr. Williams responded that the bids for the work will go out today and should be opened at a Board of Public Works meeting on March 13. The demising wall should installed and the build-out complete by the end of March. 5 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area continue ... Mr. King asked Ms. Malkovsky when Bombay Boutique could be ready to open if it received the space by March 31. Ms. Malkovsky indicated it could be ready to open by mid May. Mr. Peterson noted that the Commission needs to authorize the Board of Public Works to act as its agent to request and receive quotes for the construction work and to award the work to the lowest responsive and responsible bidder in an amount not to exceed $35,000. Upon a motion by Mr. Hojnacki, seconded by Mr. King and unanimously carried, the Commission authorized the Board of Public Works to act as its agent in requesting, receiving and awarding quotes for preparation of the retail space at 119 S. Michigan St. in an amount not to exceed $35,000. Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried the Commission approved the Commercial Lease for 119 S. Michigan St. in the South Bend Central Development Area to Bombay Boutique effective upon the Commission's awarding of the contract to install the demising wall. COMMISSION AUTHORIZED THE BOARD OF PUBLIC WORKS TO ACT AS ITS AGENT IN REQUESTING, RECEIVING AND AWARDING QUOTES FOR PREPARATION OF THE RETAIL SPACE AT 119 S. MICHIGAN ST. IN AN AMOUNT NOT TO EXCEED $35,000. COMMISSION APPROVED THE COMMERCIAL LEASE FOR 119 S.MICHIGAN ST. IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA TO BOMBAY BOUTIQUE EFFECTIVE UPON THE COMMISSION'S AWARDING OF THE CONTRACT TO INSTALL THE DEMISING WALL 6 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) B. Sample-Ewing Development Area (1) Commission approval requested for Resolution No. 2229 related to acquisition of property in the Sample-Ewing Development Area by eminent domain. (Underground Pipe & Valve,1100 Prairie Ave.) Mr. Laurent noted that Resolution No. 2229 authorizes staff to send a purchase offer in the amount of $10 to 1100 Corporation for the Underground Pipe & Valve property. This property is a large portion of the Studebaker Area A and its acquisition is necessary to complete the goals of the Studebaker/Oliver Plow Works Redevelopment Strategy. The buildings are outmoded, dinosaur industrial buildings. Staff has met with the owner who is expecting this purchase offer. The price of $10.00 was established based on the average of two MAI-certified appraisals which take into account the environmental condition of the property. Resolution No. 2229 also authorizes the use of eminent domain if agreement on the sale cannot be reached within 30 days of receipt of the purchase offer. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved Resolution No. 2229 related to acquisition of property in the Sample-Ewing Development Area by eminent domain. (Underground Pipe & Valve, 1100 Prairie Ave.) COMMISSION APPROVED RESOLUTION N0.2229 RELATED TO ACQUISITION OF PROPERTY IN THE SAMPLE-SWING DEVELOPMENT AREA BY EMINENT DOMAIN. UNDERGROUND PIPE & VALVE, I l OO PRAIRIE AVE.) 7 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) B. Sample-Ewing Development Area (2) Commission approval requested for proposal for professional services in the Sample-Ewing Development Area. (Architectural, Oliver Plow Ct. and Chapin St.) Mr. Laurent noted that staff solicited a proposal for an additional scope of services for streetscape design on Oliver Plow Court and Chapin Street. The Commission initially approved an $8,500 proposal from Forum Architects on July 17, 2006 to design and publicly bid installation of entrance signage for the Oliver Industrial Park. The work was postponed when the bids came in on demolition of the Stamping Plant. Now that we've received some additional project financing, we are ready to move forward on the entrance sign. However, we would like to expand the scope of services to include design and bidding of sidewalk and tree plantings along Oliver Plow Court and the west side of Chapin St. Forum Architects would also design a landscape buffer along Arnold St. to soften the appearance of the industrial park from the nearby St. Casimir residential neighborhood. The cost of the additional services is $6,800. Staff recommends accepting the proposal. Upon a motion by Mr. Hojnacki, seconded by Mr. King and unanimously carried, the Commission approved the request for proposal for professional services and accepted the proposal from Forum Architects for the additional services the fee proposed. COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR PROFESSIONAL SERVICES AND ACCEPTED THE PROPOSAL FROM FORUM ARCHITECTS FOR THE ADDITIONAL SERVICES AT THE FEE PROPOSED 8 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) Commission approval requested for proposals for professional services in the Airport Economic Development Area. (Appraisals, right of way acquisition at Bendix &Voorde) Mr. VUitwer noted that staff requested four proposals for appraisals for acquisition of right of way at Bendix and Voorde Drives. The proposal from Ralph Lauver was in the amount of $1,500; the proposal from R.E. McCloskey was in the amount of $2,600; the proposal from Jerome E. Michaels was in the amount of $1,500; and the proposal from R.E. Pitts was in the amount of $3,200. Two proposals are required for acquisition. Staff recommends accepting the proposals from Ralph Lauver and Jerome E. Michaels. 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 Airport Economic Development Area and accepted the proposals from Ralph Lauver and Jerome E. Michaels for the scope of services and fee proposed. D. South Bend Medical Services District There was no business in the South Bend Medical Services District E. West Washington-Chapin Development Area (1) Commission approval requested for Change Order to Demolition Contracts with Ritschard Bros. and Grauvogel & COMMISSION APPROVED THE REQUEST FOR PROPOSALS FOR PROFESSIONAL SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA AND ACCEPTED THE PROPOSALS FROM RALPH LAUVER AND JEROME E. MICHAELS FOR THE SCOPE OF SERVICES AND FEE PROPOSED 9 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) E. West Washington/Chapin Development Area () continued... Assoc. in the West Washington/Chapin Development Area. (Basic Machine) Mr. Schalliol noted that at its February 3, 2006 meeting the Commission approved an agreement with South Bend Heritage Foundation that, among other items, outlined a budget for the use of the ~Uest Washington/Chapinbevelopment Area TIF funds. The purpose of this agenda item is to reallocate a portion of the funding within the budget to cover some unforeseen expenses related to demolition of the Basic Machine property at LaSalle and William Streets. During demolition and clearance, the following conditions were found on the site, which could not reasonably be foreseen at the time of the contract: (1) A large concrete vault under the sidewalk on the LaSalle St. side of the property. The vault must be removed, filled and compacted, and the sidewalk and street sections repaired or replaced. (2) A concrete sump pump and five hydraulic car lift cylinders were found. These must be removed, environmentally tested and the area filled and compacted. (3) A section of the east-west alley that runs parallel to the site needs to be widened and improved to a 14' width along the length of the project site. The quotes for the additional work are as follows: Grauvogel & Assoc. $4,337.50 SBH Fee (10%) 434.00 Ritschard Brothers 37,077.00 SBH Fee (10%) 3,707.00 Total X45,555.50 10 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) E. West Washington/Chapin Development Area () continued... Funds to pay for the additional Basic Machine demolition will be diverted from the funds previously allocated for the Martin Luther King Dr. improvements, and the 2006 carryover funding will be eliminated. Staff recommends approving amended contracts. Mr. King asked if the alley is still a public alley. Mr. Schalliol responded that it is. Concrete from the Basic Machine property extended into the alley and when that was removed, the alley was only 8ft. The City Engineer instructed South Bend Heritage to restore it since Basic Machine was responsible for deterioration to the original alley. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Change Order to Demolition Contracts with Ritschard Bros. and Grauvogel & Assoc. in the West Washington/Chapin Devebpment Area. (Basic Machine) F. South Side Development Area (1) Commission approval requested for proposal for professional services in the South Side Development Area. (Appraisals, NE corner Ireland ~ Fellows) Mr. Schalliol noted that the appraisals are necessary to determine the value of land at the northeast corner of Ireland Road and Fellows Street for future disposition. R.E. COMMISSION APPROVED THE CHANGE ORDER TO DEMOLITION CONTRACTS WITH RITSCHARD BROS. AND GRAUVOGEL & ASSOC. IN THE WEST WASHINGTONICHAPINbEVELOPMENT AREA. (BASIC MACHINE) 11 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) F. South Side Development Area () continued... Pitts' proposal is in the amount of $2,400. Jerome Michaels' proposal is in the amount of $1,975. Two proposals are required to determine reuse value. Staff recommends accepting both proposals. Upon a motion by Mr. Hojnacki, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal for professional services in the South Side Development Area and accepted the proposal from Jerome E. Michaels and R.E. Pitts for the scope of services and fee proposed. (Appraislas, NE corner Ireland & Fellows) G. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. H. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. A. South Bend Central Development Area (1) Staff report on disposition of property in the South Bend Central Development Area. (Rink Riverside site) Ms. Laurent noted that on January 20, 2006 the Commission received bids for development of the former Rink Riverside site. Two developers submitted proposals, COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR PROFESSIONAL SERVICES IN THE SOUTH SIDE DEVELOPMENT AREA AND ACCEPTED THE PROPOSAL FROM JEROME E. MICHAELS AND R.E. PITTS FOR THE SCOPE OF SERVICES AND FEE PROPOSED. (APPRAISLAS, NE CORNER IRELAND & FELLOWS) 12 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area () continued... both of which were determined to be non- conforming based on not meeting the offering price. No action can be taken to accept anon-conforming bid until thirty days after receipt of bids. Staff and Commissioners have begun evaluating the proposals and have invited both developers to attend a public meeting to answer questions about their proposals. The questions were given to the developers ahead of time so they would be prepared with their responses. The Ralph Jones Drive Partnership is present today to answer questions. The Eco-Urban Collaborative was expected at this meeting, but is not present. They will need to be rescheduled at a later meeting. Mr. Peterson noted that the information presented today in no way amends or supplements the bids. It simply clarifies issues raised with respect to the bids. 1. Purchase.. Price offered by Applicant Advance Question 1 a) In the "Application To Commission" you submitted on January 20, the purchase price stated is $30,000. Please confirm that $30,000 is the correct purchase price you are offering for the Rink Site. Answer: Holladay Properties is $300,000 for the Rink S ite. We submitted a performance guaranty of 10% ($30,000) to the City, and simply made a mistake on the RFP response. 13 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (} continued... Advance Question lb) In your proposal, you state "In our site plan, for East Gateway, we have included pieces that are placed on parcels currently owned by the Redevelopment Commission. Holladay Properties would like to enter into an Option to Purchase agreement, at five (5) dollars per square foot, with the Redevelopment Commission." Is "five (5) dollars per square foot" (i} the amount you are willing to pay for an option to purchase the parcels, or (ii) the amount you are willing to pay to actually purchase the parcels if you exercise the option at a later time? Answer: Five (5) dollars is the amount that we are willing to pay to actually purchase the parcels if we exercise the options at a later time. 2. Proposed Site purchase -all 0.83 acres Advance Question 2a) You state "In our site plan... we have included pieces that are placed on parcels currently owned by the Redevelopment Commission." For the avoidance of doubt, we would like to know by Property Key Number the parcels you are referring to. Please refer to the diagram titled "Redevelopment Commission Owned Properties" in the Request For Proposals and tell us specifically the key number of each parcel you are referring to. 14 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area () continued... Answer: Holladay Properties is seeking to purchase lots that are currently owned by the Redevelopment Commission and lots that would be purchased by the Redevelopment Commission. In addition to the Rink Site, those lots include: 18-5003-0049,18-5003- 0048,18-5003-0047,18-5003-005903,18- 5003-005902,18-5003-005901,18-5003- 0059,18-5003-0060, and 18-5003-006001. Advance Question 2b) It appears from your site plan that Sycamore Street between LaSalle and Colfax is vacated. Is this your intent? If yes, do you expect to be granted ownership of the vacated Sycamore Street right-of-way? Answer: Holladay Properties intends to vacate Sycamore Street in order to eliminate through traffic. Sycamore Street would remain open to service the Maennerchor Club and the new parking garage. Holladay Properties would request ownership of the right-of way to the extent necessary to complete the corporate office building and public plaza located on the Rink Site. 3. Description of proposed development - square footage of improvements Advance Question 3a) It appears you propose to build only a "corporate office" building of 75,000 square feet on the Rink Site per se. Is this correct? 15 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area () continued... Answer: Yes, but the final size of the building could vary. For a corporate headquarters, the square footage could vary ±25,000 square feet from the 75,000. We would request some leaway for 50,000 to 100,000 square feet. Advance Question 3b) As part of your proposal you submitted an architect's rendering of the 75,000 office building. Is the design illustrated in that architect's rendering an accurate depiction of what you actually expect to build on the site? Answer: The architectural rendering that was provided was meant to be conceptual only, for marketing purposes as well as to determine how much space could be fit onto the site. The final design will dictate the construction materials and style used for the final product. However, the design and construction will be of a very high quality that will complement the view across the St. Joseph River from the Century Center. Mr. King: So, the ultimate design would be determined by the tenant? Or interaction between your company and the tenant? Answer: Hopefully, it would be interaction between ourselves, the tenant, the City, and all the players involved in the master planning effort. 16 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area () continued... 4. Description of proposed development - private investment Advance Question 4) It appears that your private investment for development on the Rink Site per se would be $30,000 for the land and approximately $10,000,000 for the 75,000 square foot corporate office building. Is this correct? Answer: As stated in the answer to question one, Holladay Properties is offering to purchase the land for three hundred thousand dollars ($300,000), and thirty thousand dollars ($30,000) was an error on the application. However, the ten million dollar ($10,000,000} investment in the corporate office building is an estimate based on the building being 75,000 square feet. The range would likely be between $8,000,000 and $15,000,000. 5. Description of proposed development - jobs to be created or retained as the result of improvements on the Site Advance Question 5) What is your estimate of new jobs that would be created and existing jobs that would be retained as the result of your proposed development on the Rink Site? Would "existing jobs that would be retained" be lost if your development does not proceed? 17 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area () continued... Answer: Holladay Properties is estimating that the Rink Site project alone would provide 280-350 jobs. The adjacent uses, particularly the Wharf Site, will provide several hundred more jobs. 6. Description of proposed development - whether the Property,.. when improved, will be sold or' rented;.. proposed buyers and/or tenants Advance Question 6a) Would the Rink Site and the 75,000 corporate office building be sold or rented? Answer: Holladay Properties will be developing the project, and beyond that we cannot yet say that the property will be sold or rented, after construction, with 100% certainty. Or there may be a joint venture with a financial party. Advance Question 6b) Can you demonstrate demand for a complex such as this? Answer: Holladay Properties has been in contact with several different users with interest in the project. Five years ago there did not seem to be excess demand for Class A office space in downtown South Bend. Current occupancy in the Class A office space in downtown South Bend is over 90%. The market for office space in downtown South Bend is the strongest it's been in ten years. 18 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area () continued... Advance Question 6c) Please list, or give examples of, the type of business you expect would buy or rent the developed property. Answer: Holladay Properties envisions a financial, legal, communications, or insurance firm to locate at this project. Mr. King: This could be either a single tenant ormulti-tenant building? Answer: That is correct. Holladay Corporation originally started working on a development concept for this site almost a year ago, before the site was put up for bid. We have two users we are negotiating with. Both are still interested. Either of those would occupy 100% of the building. If not a single tenant, we'd expect a dominant tenant with some additional multi-tenant space. Mr. Hojnacki: Are those tenants under time constraints? Answer: One of them wants to begin occupancy January 1, 2008. 7. Description of proposed development - timeline outlining when major development actions will occur. Advance Question 7a) Please provide a timeline for the major development actions you intend for the Rink Site. 19 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (} continued... Answer: The timeline submitted with the proposal was outdated, having been prepared almost a year ago. This is an updated timeline. Fall 2005: Sale ofNiles/Colfax Building to PeopleLink. Completed. Spring 2006: Completion of Washington Street improvements. Almost complete. Spring 2006: City negotiations with Commerce Center on parking structure. The Commerce Center has a new owner who has a parking problem since the parking garage is closed. Summer 2006: Master Plan of East Bank community is completed. Summer 2006: Redevelopment completes purchase of properties and enters into contract with Holladay Properties for the Rink land. Spring 2007: AM General addition completed Spring 2007: Colfax Bridge improvements completed Spring 2008: Waters Edge Condo/Hotel and Plaza completed Summer 2008: Pedestrian bridge to Century Center completed Summer 2008: Parking structure completed Fall 2008: Corporate office building on Rink Site completed 20 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area () continued... Advance Question 7b) Please provide a timeline for the major development actions you intend for the additional parcels named in your answer to question 2a above. Answer: Summer 2006: Redevelopment completes purchase of properties and enters into contract with Holladay Properties for the purchased land. Spring 2008: Waters Edge CondHotel and Plaza completed Summer 2008: Parking structure completed Mr. Hojnacki: How does the Waters Edge Condo/Hotel project fit with the proposed Gameday Centers project. Are you worried about excess capacity? Answer: Our project is not intended to be a "for sale" project. I think their project has to be presold. Ours is not contingent upon presale. It will be a conventional hotel on the lower floors with condos on the top only. Mr. Hojnacki: Presumably, they' 11 have a year's jump on you. Answer: We'd like to think not. We're going to do something with the Wharf site, if not hoteUcondominiums. I'd be we'll be out of the ground first. 21 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (} continued... 8. Ability of the Applicant to finance and complete the development as proposed Advance Question 8) Would you be willing to provide the city a performance and payment bond to assure that the development can be financed and completed? Answer: Yes, Holladay Properties would provide the City with a performance and payment bond within certain parameters. 9. Public improvements or investments that may be requested of the City of South Bend and/or the South Bend Redevelopment Commission Advance Question 9a)Your proposal appears to state that you would like the City of South Bend to do the following: • Grant you an option to purchase the parcels named in your answer to question 2a above Answer: Yes • Complete a master plan for the area commonly known as the "East Bank" Answer: No, Holladay would like to lead the effort (not control it) and is willing to share 50% of the expense. We are proposing a design charrette similar to the one we used for the Portage Prairie development, bringing all intere steel partie s into the discussion of what the overall 22 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area () continued... development should contain. An outside consultant facilitated it. It was very helpful and successful at achieving buy-in. Development of the Rink site isn't worth doing, for us, unless it becomes part of something much larger. This has to be a catalyst for something bigger. Holladay Corporation paid entirely for the Portage Prairie charrette. Since development of the Rink site is of more public interest and since the City is the current owner, we propose sharing the cost of the charrette. The FireArts studio is an example of the public interest about what happens in that whole area. A couple of the Holladay Corporation partners were involved in getting it settled into that location. We knew it was only temporary, though. Just because we didn't include them in our proposal doesn't mean we want them thrown out. We have to find a place for them in this process, and clearly we will. The cost of the Portage Prairie charrette was $165,000. This proposed charrette should be less expensive, probably in the neighborhood of $100,000. The area is smaller and there are some "givens" already. • Vacate Sycamore Street between LaSalle and Colfax Answer: Yes, see response to question 2B 23 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area () continued... • Build an "East Race Parking Structure" to house 400 cars Answer: Yes, to provide parking for several office and commercial structures on the East Race • Build additional improvements to Washington Street Answer: That is not something that is a part of the Ralph Jones Drive proposal. That is something we picked up off of earlier discussions when we were planning the AM General addition. It is not a critical element to our proposal; rather, an accommodation of what we understood to be City plans. • Provide improvements to the Colfax Bridge, including "overhead lighting features, pavement upgrades, and side bridge bump-outs" Answer: Yes. Everything here is cosmetic. Thankfully, the bridge has been recently upgraded. • Build a "Colfax Plaza... in conjunction with the Corporate Client's Headquarters, Retail Offices and Waters Edge" Answer: Yes. We hope to take a portion of Sycamore Street and have a public plaza there. Mr. King: Are you expecting the City of South Bend to build that plaza? 24 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area () continued... Answer: Yes. • Contribute $1,400,000 toward the $1,600,000 cost of building of "anew pedestrian skyway system...to interconnect the new buildings along the St. Joseph River with the new East Race Parking Structure and Century Center" Answer: Yes • "Construct a new East Bank Gateway Park at the current parking lot south of AM General" Answer: Not required. ~Ue included it because we had picked up that redevelopment wanted that done. • Grant a 10-year tax abatement on improvements to the Rink Site Answer: Yes • Grant a 10-year tax abatement on improvements to property owned by Holladay called the "Waters Edge" Answer: Maybe. It really depends on how the parking situation works out. There was an MOU entered into in 2002 for that site. It involved a TIF district for just that site. If that plan is used, there could be no tax abatement for the Waters Edge project. 25 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area () continued... Would you proceed with your development only if the city agrees to all of the above? If no, please state which of the above you would not require. Anwer: Stated in the direct response to individual questions. We came up with our best guesses here. We expect the design charrette to achieve buy-in from everyone on what gets done and who pays for what. Mr. Hojnacki: Are you saying there is room for discussion, considerable room for discussion, or... Answer: I don't think there's any question about that. This is a big project. There are a lot of public pieces to it. I don't want to imply that you don't have to participate in it in a significant way, because I think you do. Mr. Hojnacki: My own opinion: we as a public body have a responsibility to the taxpayers, that we don't spend more taxpayer dollars than we have to. At the same time we understand that if anything is going to happen, we're going to have to pull the trigger on it. I probably am more willing to spend money than others on the Commission are. Answer: We will do something, someday, on the Wharf site, no matter 26 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area () continued... what the City does. It just isn't going to be the catalytic type of project that we want it to be. The same is true here on the Rink site. We could have sold the ~Uharf site and made a nice profit on it and walked away. We didn't do that. ~Ve don't want to do that. And we wouldn't do that here, either. But, in the long run, if the City has no interest in participating in a master planning effort, that's what would happen. Mr. King: John, this question wasn't given to you in advance, but maybe you can answer it anyway. If I understand the area you' 11 develop as retail/office, there's a cell phone tower there that would have to be moved. Are you expecting you would do that, or the City? Answer: We would hope it would be moved. We would expect the City to buy it and do whatever necessary to move it and then sell the land to Holladay at the same $5/sft price w'd pay for any other additional land. Advance Question 9b) Why do you feel the return to the public warrants the amount of public funds you are requesting? (See attached table.) Answer: Holladay Properties feels that this is a major project that would create jobs and downtown residences. This is the type of project that could be a catalyst for downtown 27 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area () continued... South Bend and the East Bank area. A good portion of the public funds would be spent on projects that would directly benefit the residents of South Bend, and not only the residents and employees of this project. 10. Plans must meet current code and zoning requ~ernents Advance Question 10) Would your site plan for the Rink Site require any variances from current code and zoning requirements? If yes, please describe each such variance. Answer: Holladay Properties has not yet determined if any changes are going to be required. VUe don't think the actual building would require any variances. We don't know about the overhead walkway. 11. Project proposal considers the immediately surrounding East Bank area and gives evidence of how development of the Site fits with either existing conditions or future planned or phased development Advance Question l la) In your proposal you say you would like to develop a master plan for the area. What specifically would that master plan consist of? Answer: The master plan should have a primary and secondary planning area. The primary area would consist of the site and the area surrounding the site bounded, hypothetically, by Jefferson Blvd. on the south, Hill St. on the east, LaSalle St. 28 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area () continued... (including frontage on both sides) on the north and, of course, the river on the west. The secondary planning area extends outside the primary area to an indeterminate distance, with the objective to identify factors (road improvements, developments, etc.) that may significantly affect the primary planning area. The reason to develop a project within a large planned area is that no project, even a major project as proposed, is developed - or is perceived - in a vacuum. Whether the project is residential or commercial, the appeal depends as much on the "context" as on the project itself. It has been our experience that perceived and actual "momentum" in a project area is very important. When completed, a master plan allows a more refined approach to decision making in the planned area and results in a more cohesive, orderly growth that raises the development potential and value. to the East Bank. Apart from design issues which are always in order, the fact to remember is that positive energy, activity and sheer numbers of people are critical to continued improvement in the East Bank neighborhood. 29 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area () continued... This question also relates to the previous question concerning planning. Residential growth must be encouraged in the East Bank and environs. But so must density and as much "24/7" activity as possible. In that sense there is a desirable and necessary role for office and retail activity in the East Bank. Proximity to jobs and entertainment are critical to a healthy urban residential environment. With respect to the race or riverfront, the issue in our judgment is not the use. Rather it is the quality of planning and design. For example, whatever use fronts the riverbank, an appealing public space must be preserved. Residential use as much as any other use can impair that if not properly designed. Our plan contemplates a clear and inviting public presence along the riverbank and enhances that potential dramatically with the proposed pedestrian bridge across the river and pedestrian-friendly enhancements to the Colfax Bridge. Our proposed buildings are fairly large in scale, but scale within reason is not a negative if the buildings and sites are designed to be inviting to people who work, shop - or live - in the space. Such design details as setbacks, view sheds, use of materials worked out within a basic respect for the character and "bones" of the site will result in a wonderful addition to both skyline and riverfront. 30 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area () continued... In addition, highest and best use dictates that the greatest number of people who can benefit from the `improvements' be served in a given site. The best sites, in effect, create the largest demand and deserve the greatest densities. There's a walking bridge down in Lafayette that the City put across the river. It sits behind The Landing shopping center. They made it wide enough, with punch-outs---it's become a very popular place for people to enjoy on nice days. It isn't nearly as nice a view as the St. Joseph River downtown. Mr. Perri: It's like sitting on the wall at Century Center and looking at the cascading water. From the other side, we've taken pictures from a bucket truck that show a beautiful view from the Wharf site. It's a vision that we can have here. The aesthetics are there. 12. Improvements to the Site will enhance, rather than detract from, both the public views of the river and access to the river via the East Race walkway currently in place Advance Question 12a) Address the concern that East Gateway would privatize or otherwise lessen public access to and enjoyment of the river. 31 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area () continued... Answer: Responses to Question 11 addressed this issue. The only comments to underscore are that the planning process should take as a given that the continued enhancement of access to the riverbank area is a must. We have zero intention of making access to the riverfront any less public than it is today. That is an absolute necessity to the success of any East Bank development. This must be tempered with the other very important requirements to create a vibrant East Bank "district" with commercial and residential activity in a network of public spaces and places. The ultimate dedication to public space would be for Holladay's wharf site and the "Rink" site to simply be parks. That would not achieve the diverse goals which we believe have been established for the East Bank. 13. Applicant is willing to accept responsibility for knowing and meeting all environmental standards Advance Question 13) Are you willing to accept responsibility for knowing and meeting all environmental standards and paying any related costs? Answer: Holladay Properties is not exactly clear on how this question fits into our current discussion. We've already spent a lot on cleaning out the other riverfront locations. We expect to do similarly for this one. 32 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (} continued... Mr. King thanked Mr. Phair and Mr. Perri for their time and thoughtful answers. The answers were very helpful in clarifying the questions the Commissioners and staff had after reviewing the Ralph Jones Drive Partnership's proposal for the Rink site. Mr. King asked if Mr. Phair had anything he wanted to add that he thought had not been expressed. Mr. Phair said he wished the Commissioners could review booklet prepared following the Portage Prairie charrette. He has given Ms. Laurent the remaining two extra copies he had. Ms. Laurent indicated she will see that the Commissioners are offered a copy. Mr. Perri stated that he appreciated the opportunity for give-and-take. It enabled them to give thoughtful consideration to the significant questions brought up by the Commission. Mr. Phair asked what the Commission's time line is for awarding the Rink Riverside site. Commissioners agreed that they did not want the process to drag. Mr. Phair noted that the new owners of the Commerce Center are not local. He suggested it might be a good idea if staff made arrangements to meet with them some time when they are to be in town to discuss their needs, especially for a parking garage. 33 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 7. PROGRESS REPORTS Mr. Inks reported that we are pushing ahead with the PROGRESS REPORTS improvements to West Ireland Road and Michigan Street next to the Erskine Commons site. Some construction is already proceeding on West Ireland. We have an obligation to complete that in the fourth quarter of this year. ~Ue expect to see development on that site as well later this year. Mr. Laurent reported that staff closed on the Huckins property last week. We are already working with Engineering to get the demolition specifications written so we can have the building demolished as quickly as possible. Mr. Laurent also noted that on February 24 we had the kickoff of the Stamping Plant demolition. There were about 90 people there. Congressmen were there. The building they started on is already gone. Mr. Williams reported on the progress on the Main and Colfax parking garage. There are to be four phases in the rehabilitation. At the northeast entrance near the Palms Royale, all the concrete work is done. The pedestrian access that leads to the elevator is finished. They are now working on the northwest corner. They are making a pedestrian ramp to keep pedestrians out of the driving ramp. They are at least on schedule, maybe a little ahead of schedule. They are to be substantially completed by August 16, fully complete by September 1, 2006. Mr. Inks noted the great job that has been done matching the new work with the existing building. It's hard to tell where the old leaves off and the new begins. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING a Rescheduled Regular Meeting on Friday, March 10, 2006 at 10:00 a.m. 34 South Bend Redevelopment Commission Regular Meeting -March 3, 2006 9. ADJOURNMENT There being no further business to come before the ADJOURNN~NT Redevelopment Commission, Mr. King made a motion that the meeting be adjourned. Mr. Blake seconded the motion and the meeting was adjourned at 11:22 a.m. Donald E. Inks, Director Marcia I. Jones, President 35