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HomeMy WebLinkAbout10-06-06 Redevelopment Commission Minutes MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING October 6, 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 Legal Counsel: Ms. Cheryl Greene, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. Timothy Williams, Economic Development Specialist Ms. Jennifer Laurent, Economic Development Specialist Mr. Nicholas Witwer, Economic Development Specialist Others Present: Ms. Pam Paluszewski, Legal Dept. Ms. Charlotte Sobel, South Bend Heritage Foundation Ms. Glenda Hernandez Ms. Rita Kopala 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, July 21, 2006. Mr. King asked that the two occurrences of Richard Nussbaum III be changed to Richard Nussbaum II. Upon a motion by Mr. King, seconded by Mr. COMMISSION APPROVED THE MINUTES OF THE Downes and unanimously carried, the Commission REGULAR MEETING OF FRIDAY, JULY 21, a roved the Minutes of the Re ular Meetin of 2006, As coRRECTED pp g g Friday, July 21, 2006, as corrected. South Bend Redevelopment Commission Regular Meeting -October 6, 2006 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted October 6, 2006 for approval. 305 SBCDA 2003 BOND Walker Parking Consultants Kaser-Spraker Construction Barnes & Thornburg LLP 1,000.00 128,995.92 Facade Renovation 1,686.50 324 AIRPORT AEDA CFH Landscape Services 1,475.00 City of South Bend 11,704.57 Abonmarche Consultants of Indiana L.L.C. 1,280.00 Sopko, Nussbaum & Inabnit 461.25 Jerome E. Michaels, MAI 3,800.00 Baker & Daniels LLP 425.00 Abonmarche Consultants of Indiana L.L.C. 3,200.00 R.E. Pitts & Associates, Inc. 3,200.00 Ken Herceg & Associates, Inc. 4,500.00 St. Joseph County Treasurer 476.27 414 SAMPLE EWING GENERAL CFH Landscape Services 2,540.00 420 FUND TIF DISTRICT-SBCDA GENERAL CFH Landscape Services 680.00 Schindler 120.18 AEP 216.23 CB Richard Ellis 606.94 South Bend Water Works 203.96 AT & T 110.55 Jerome E. Michaels, MAI 3,500.00 Ralph D. Lauver, MAI 3,750.00 South Bend Water Works 255.59 422 FUND WEST WASHINGTON South Bend Heritage Foundation 869.00 424 FUND TIF SBCDA BUILDING OPERATIONS CB Richard Ellis 407.60 619 FUND BLACKTHORN Meadowbrook Golf Group Inc. 16,000.00 $ 191,464.56 2 South Bend Redevelopment Commission Regular Meeting -October 6, 2006 3. APPROVAL OF CLAIMS (CONT.) Upon a motion by Mr. Dowens, seconded by Mr. COMMISSION APPROVED THE CLAIMS Hojnacki and unanimously carried, the Commission SUBMITTED OCTOBER 6, 2006, AND ORDERED approved the Claims submitted October 6, 2006, and THE CHECKS To BE RELEASED ordered checks to be released 4. COMMUNICATIONS There were no Communications. THERE WERE NO COMMUNICATIONS 5. OLD BUSINESS There was no Old Business. THERE wAS No oLD BUSINESS 6. NEW BUSINESS A. Housing (1) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Program for property located at 1154 N. Fremont Street. (Elonda Wilder) Mr. Inks noted that the loan is in the amount of $2,950; the grant is $2,797.50. Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried, the Commission approved the Loan and Grant in connection with the South Bend Home Improvement Program for property located at 1154 N. Fremont Street. (Elonda Wilder) (2) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Program for property located at 1148 W. Jefferson Boulevard. (Rosalinda Leyva) COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT I I S4 N. FREMONT STREET. ~ELONDA WILDER) 3 South Bend Redevelopment Commission Regular Meeting -October 6, 2006 6. NEW BUSINESS (CONT.) A. Housing continue ... Mr. Inks noted that the loan is in the amount of $4,100; the grant is $12,500. Upon a motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the Loan and Grant in connection with the South Bend Home Improvement Program for property located at 1148 W. Jefferson Boulevard. (Rosalinda Leyva) B. South Bend Central Development Area (1) Commission authorization requested by Downtown South Bend to use the portion of the Michigan Street Shops at 117 S. Michigan St. between December 1 and December 24, 2006 for its Holidays with Santa Campaign. Mr. Williams noted that Downtown South Bend has asked for use of the currently vacant space at 117 S. Michigan St. (former Esprit Decor) for the Holiday with Santa campaign to be held December 1 through December 24. They will secure indemnification. DTSB realizes the space may be leased before then and would then not be available for DTSB use. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission authorized use of the storefront at 117 S. Michigan St. by Downtown South Bend from December 1 through December 24, 2006 for the Holidays with Santa campaign. COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 114g W. JEFFERSON BOULEVARD. (ROSALINDA LEYVA) COMMISSION AUTHORIZED USE OF THE STOREFRONT AT 117 S. MICHIGAN ST. BY DOWNTOWN SOUTH BEND FROM DECEMBER I THROUGH DECEMBER 24 FOR THE HOLIDAYS WITH SANTA CAMPAIGN 4 South Bend Redevelopment Commission Regular Meeting -October 6, 2006 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) Commission approval requested for Management Agreement by and between the South Bend Redevelopment Commission and Downtown South Bend, Inc. (Surface Parking Lots; South Bend Central Development Area) Mr. Inks explained that the Commission owns four parking lots in the downtown which Downtown South Bend currently manages for us. Three of those are under lease with DTSB. The fourth is the lot next to the LaSalle Hotel and Morris Performing Arts Center. That lot is currently not under contract. The Commission has been operating these lots under two leases that go back to the early 1990s. Legal counsel has put together a new master Parking Agreement to incorporate all of these to one document. The Baer's Lot next to the Avon Theater was originally purchased with Community Development Block Grant funds, so it will have some separate strings that will be made an exhibit to that document. Ms. Greene noted that the Parking Agreement with DTSB for management of these lots is the preferred method over leasing them to DTSB. If a developer wants to develop any of those properties the Commission will have more immediate control and will simply notify DTSB that it will no longer be managing that lot. The Agreement contemplates that DTSB would operate and manage some of the surface parking lots the Commission owns. The parking rates for these lots will be 5 South Bend Redevelopment Commission Regular Meeting -October 6, 2006 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area continue ... consistent with what the Council passes for downtown public parking. The fees collected will be used for DTSB to support economic development in the downtown area. Specific uses for the funds are laid out in the Agreement so there is clear public benefit from the income off of those lots. The Agreement also imposes more detail to reporting requirements, setting up budgeting, doing analysis of what expenses are anticipated, and it will address covering the lots with liability insurance. The Agreement is not final at this time. The staff is still working on it and will bring it back in final form for the Commission's approval. Ms. Greene noted that a notice will need to be sent to DTSB notifying them that the current leases will be terminated. Mr. King asked what Ms. Greene anticipated as a term for the Operation and Management Agreement. Ms. Greene said she is looking for direction from the Commission on what term it would like. Mr. King suggested a longer term would help DTSB with their planning. Ms. Greene suggested a term of five years. Mr. Downes and Mr. King acknowledged that they are members of the Board of Directors of Downtown South Bend, but that position does not give them a pecuniary 6 South Bend Redevelopment Commission Regular Meeting -October 6, 2006 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area continue ... interest in the outcome of this vote. Upon a motion by motion by Mr. King, seconded by Mr. Hojnacki and unanimously carried, the Commission authorized legal counsel to proceed with the development of a form of management agreement with Downtown South Bend, Inc., including notifying Downtown South Bend at an appropriate time of the proposed change. (3) Commission approval requested for First Amendment to Parking Agreement in the South Bend Central Development Area. Ms. Greene noted that at a previous Commission meeting the Commission authorized her to negotiate an amendment to the parking agreement with the South Bend School Corporation. The definitive agreement has been reviewed by the School Corporation and will be presented to the School Board next week. The agreement allows the School Corporation to install a separate gating system to close off the top two floors. The City will supply surplus gates it has on hand. Working with City parking staff, the School Corporation would install a coordinated gating system so that School Corporation authorized personnel must use the top gates in order to exit the garage without paying. It's an enforcement mechanism to ensure that the School Corporation uses its designated area and leaves the lower levels for the general public. At this time, Ms. Greene noted, there is no COMMISSION AUTHORIZED LEGAL COUNSEL TO PROCEED WITH THE DEVELOPMENT OF A FORM OF MANAGEMENT AGREEMENT WITH DOWNTOWN SOUTH BEND, INC., INCLUDING NOTIFYING DOWNTOWN SOUTH BEND AT AN APPROPRIATE TIME OF THE PROPOSED CHANGE 7 South Bend Redevelopment Commission Regular Meeting -October 6, 2006 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area continue ... cost to Commission for this agreement. Ms. Jones asked what number of parking spaces the Commission committed to the School Corporation. Mr. Inks responded the commitment was 150 spaces. The gates will be located at 150 spaces. Upon a motion by Mr. Downes, seconded by Mr. Hojnacki and unanimously carried, the Commission approved the First Amendment to Parking Agreement in the South Bend Central Development Area. 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 Resolution No. 2272 related to acquisition of property in the Airport Economic Development Area. (Dylan Dr. right of way) Mr. Witwer noted that Resolution No. 2272 establishes the offering price for 23464 Adams Road and authorizes the sending of a purchase offer in the amount of $150,000. The property is owned by Waggoner Dairy Farms, Waggoner Farm Development LP and Huron Partners. The offering price was arrived at by averaging two independent appraisals. The property is COMMISSION APPROVED THE FIRST AMENDMENT TO PARKING AGREEMENT IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA 8 South Bend Redevelopment Commission Regular Meeting -October 6, 2006 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area () continued... needed for right of way for the extension of Dylan Drive north to Adams Road to serve as an industrial corridor through Phase I of Portage Prairie. Upon a motion by Mr. Hojnacki, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2272 related to acquisition of property in the Airport Economic Development Area. 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- ChapinDevelopment Area. G. South Side Development Area (1) Commission approval requested for Resolution No. 2271 related to acquisition of property in the South Side Development Area by Eminent Domain. Mr. Schalliol noted that Resolution No. 2271 sets the acquisition price for purchase for the acquisition of permanent and temporary right-of way needed to facilitate the infrastructure improvements associated with the West Ireland Road Improvement Project. The parcel at 315 West Ireland Road contains one house, located on the northwest corner of COMMISSION APPROVED RESOLUTION N0.2272 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA 9 South Bend Redevelopment Commission Regular Meeting -October 6, 2006 6. NEW BUSINESS (CONT.) G. South Side Development Area () continued... Ireland and Lafayette. Engineers have determined that 21,170 sft of permanent right-of way will need to be acquired from the east side of the property and 1,176 sft of temporary right-of way will need to be acquired from the south side of the property. The average appraised value per square foot is $8.40. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2271 related to acquisition of property in the South Side Development Area by Eminent Domain. H. Northeast Neighborhood Development Area There was no business in the Douglas Road Economic Development Area. I. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. 7. PROGRESS REPORTS Ms. Laurent reported that the Commission has received and approved a Letter of Intent from the principals of Michigan Street LLC for the renovation of the building at 101 N. Michigan, the former American Bank and Trust building. Their entire development proposal anticipates negotiating with the Commission on the acquisition of the property to the north (former Senor Kelly parking lot). We have previously offered this property for public disposition with similar bid COMMISSION APPROVED RESOLUTION N0.2271 RELATED TO ACQUISITION OF PROPERTY IN THE SOUTH SIDE DEVELOPMENT AREA BY EMINENT DOMAIN PROGRESS REPORTS 10 South Bend Redevelopment Commission Regular Meeting -October 6, 2006 7. PROGRESS REPORTS (CONT.) specifications to what we would offer it in support of 1 O l N. Michigan and we have gotten updated appraisals. We will not be going through the public disposition process again because we have met our statutory requirement for that. The developers already own the building. They are already renovating the former Fannie May retail space. The architect is finalizing the construction budget for the facade. The team has asked for public participation on the facade renovation. The developer has also been working with the state Historic Preservation officer on the federal historic tax credit application. Ms. Charlotte Sobel gave the quarterly report on progress in the west Washington Development Area. Since Basic Machine and Oil Express are completed and in maintenance mode, she won't be reporting on those projects anymore until there is something new. On the Engman Natatorium South Bend Heritage Foundation has completed the environmental cleanup. They had a sewer line test done which showed it was very clean and can be reused. That saves about $16,000 in the budget. The Board of Public works awarded the masonry contract to Atlas Building Services to begin the masonry repointing and the terra cotta rework. They specialize in this type of work and were thrilled to get the job. That work will start in ten to twelve days. South Bend Heritage Foundation is about to award contracts for civil and structural engineering, which do not have to be bid. They are also going to have some geotechnical surveying done because they plan to use some "green" building products. Ms. Sobel noted that they have increased their fundraising to cover the additional costs associated with building "green." South Bend Heritage has raised about 75% of what it committed to the rehabilitation. IUSB is doing its fundraising to furnish the inside of the building and endow all of its staff salaries for the future. 11 South Bend Redevelopment Commission Regular Meeting -October 6, 2006 7. PROGRESS REPORTS (CONT.) Mr. King asked what the future holds for the Basic Machine property and Oil Express. Ms. Sobel responded that South Bend Heritage Foundation has been in preliminary negotiations with the South Bend Housing Authority about buying its adjacent property. The TIF district won't have the money for a few years to do that. Ultimately they' d like to put downtown market rate housing on the combined sites. Ms. Sobel also noted that the for reusing the Oil Express site, South Bend Heritage Foundation would like to acquire the building at the corner and has made initial overtures. The owner backed off. Acquisition of the old steel pickling plant, which is also adjacent to Oil Express, will have some huge environmental issues. There has been no attempt to acquire that as yet. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is scheduled for Friday, October 20, 2006 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. King made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 10:32 a.m. Donald E. Inks, Director NEXT COMMISSION MEETING ADJOURNMENT Marcia I. Jones, President 12 South Bend Redevelopment Commission Regular Meeting -October 6, 2006 EXECUTIVE SESSION October 6, 2006 The South Bend Redevelopment Commission met in Executive Session on Friday, October 6, 2006 at 8:45 a.m. The meeting was held in Room 1200 County-City Building, 227 West Jefferson, South Bend, Indiana, for the purposes specified in I.C. 5-14-1.5-6.1(b)(2)(D). Commissioner's Present: Marcia Jones, President; Karl King, Vice President; Greg Downes, Secretary; Bill Hojanaki. Others Present: Sharon Kendall, Executive Director, Community & Economic Development, Don Inks, Director, Economic Development, Attorney Cheryl Greene, Pam Paluszewski, Shawn Peterson, Robert Mathia, Bill Schalliol, Tim Williams, Andy Laurent, Jennifer Laurent, and Nick Witwer, The Commission certifies that no topic was discussed other than the subject matter specified in the Public Notice. The Executive Session was adjourned at 10:00 a.m. CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT Signature Printed Name and Title South Bend Redevelopment Commission 13