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HomeMy WebLinkAbout10-20-06 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING October 20, 2006 10:00 a.m. 227 West Jefferson Boulevard Presiding: Karl G. King, Vice-President South Bend, Indiana 1. ROLL CALL Members Present: Mr. Karl King, Vice President Mr. Greg Downes, Secretary Mr. Hardie B lake, Jr. Members Absent: Ms. Marcia Jones, President Mr. William Hojnacki Legal Counsel: Ms. Cheryl Greene, Esq. Mr. Shawn Peterson, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary 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. Sharon Kendall, Executive Director Ms. Catherine Fanello, Controller Ms. Charlotte Pfeifer, South Bend Common Council Ms. Pam Paluszewski, Legal Dept. Ms. Jamie Loo, South Bend Tribune Mr. George Adler, Community Development Mr. Jerry Niezgodski Mr. Marty Wolfson Ms. Linda Wolfson Mr. King noted a Revised Agenda for the October 20, 2006 meeting. The Revised Agenda differs from the original Agenda by the addition of Item 6.C.(2), authorization for access to Commission owned property on Sycamore St. Mr. Downes made a motion that the Revised Agenda be COMMISSION APPROVED THE REVISED accepted and approved. Mr. Blake seconded the motion AGENDA DATED OCTOBER 20, 2006 and the Commission approved the Revised Agenda dated October 20, 2006. South Bend Redevelopment Commission Regular Meeting -October 20, 2006 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, August 25, 2006. Upon a motion by Mr. Downes, seconded by Mr. COMMISSION APPROVED THE MINUTES of THE King and unanimously carried, the Commission REGi1LAR MEETING of FRIDAY, AUGUST 25, a roved the Minutes of the Re ular Meetin of 2006 pp g g Friday, August 25, 2006. B. Approval of Minutes of the Regular Meeting of Friday, September 15, 2006. Upon a motion by Mr. Downes, seconded by Mr. COMMISSION APPROVED THE MINUTES OF THE King and unanimously carried, the Commission REGULAR MEETING OF FRIDAY, a roved the Minutes of the Re ular Meetin of SEPTEMBER 15, 2006 pp g g Friday, September 15, 2006. C. Approval of Minutes of the Special Meeting of Monday, October 2, 2006. Upon a motion by Mr. Downes, seconded by Mr. COMMISSION APPROVED THE MINUTES of THE King and unanimously carried, the Commission SPECIAL MEETING of MONDAY, OCTOBER 2, a roved the Minutes of the S ecial Meetin of 2006 pp p g Monday, October 2, 2006. D. Approval of Minutes of the Regular Meeting of Friday, October 6, 2006. Upon a motion by Mr. Downes, seconded by Mr. COMMISSION APPROVED TIC MINUTES of THE King and unanimously carried, the Commission REGi1LAR MEETING of FRIDAY, OCTOBER 6, a roved the Minutes of the Re ular Meetin of 2006 pp g g Friday, October 6, 2006. 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted October 20, 2006 for approval. 324 AIRPORT AEDA H & G Services Ken Herceg & Associates, Inc. 130,730.00 10,644.00 2 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 3. APPROVAL OF CLAIMS (CONT.) 420 FUND TIF DISTRICT-SBCDA GENERAL Rose Pest Solutions 87.00 AEP 656.34 NIPSCO 58.24 KRC Roofing & Sheet Metal, Inc. 4,900.00 CB Richard Ellis 671.22 True Value 27.49 ConSpect Services, Inc. 457.63 428 FUND AIRPORT 2003 BOND DLZ 18,250.65 619 FUND BLACKTHORN Meadowbrook Golf Group Inc. 8,000.00 $ 174,482.57 Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted October 20, 2006, and ordered checks to be released 4. COMMUNICATIONS Mr. Inks noted that two Communications have been received. The first is from Charlotte Pfeifer, Common Council representative from the 2nd District. Mr. Inks read the letter and noted the attached plan which is here printed in its entirety. October 20, 2006 Marcia Jones, President Redevelopment Commission 12th Floor County-City Building 227 W. Jefferson Blvd. South Bend, IN 46601 Dear Commissioners: I am submitting an Economic Development Plan for the COMMISSION APPROVED THE CLAIMS SUBMITTED OCTOBER 2O, 2006, AND ORDERED THE CHECKS TO BE RELEASED 3 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 4. COMMUNICATIONS (CONT.) LaSalle Square Business Area that will be beneficial upon inclusion in the Airport TIF District. This plan was put together by the surrounding communities, Faith Apostolic Church and other interested citizens with my endorsement. The surrounding neighbors support this plan. I offer this plan with the full support of the South Bend Common Council. Sincerely, Charlotte D. Pfeifer 2"`~ District Councilmember (Attachment) CONCEPT PLAN FOR REVITALIZATION OF LASALLE SQUARE AREA GOAL: Promote economic development and revitalization for the LaSalle Square area through: • Improving the appearance of the area and its identity making it attractive for new businesses, residents, and visitors entering South Bend from the airport. o Increasing business services and employment opportunities for area residents. o Restoring vitality, improving the tax base, and increasing property values in the neighborhoods surrounding LaSalle Square. • Increasing the attractiveness of the area for new investment by providing health and wellness opportunities for employees of nearby businesses as well as area residents. INTRODUCTION LaSalle Square is located on South Bendix Drive, just south of the Lincoln Way West corridor, a gateway to the city from the airport, and just north of Honeywell and Bosch. Its development is central to improving both commercial growth and the quality of life of the surrounding urban 4 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 4. COMMUNICATIONS (CONT.) neighborhoods. The LaSalle Square area is a hidden gem which boasts a proud heritage, once home to the Bendix Corporation. Bendix, formerly one of the largest employers in the City, provided well paying manufacturing and white collar jobs for several generations of working middle class families, many of whom live din the single family owned homes that dominate the neighborhoods surrounding LaSalle Square. However, this economic climate has changed and the number of well- paying manufacturing jobs providing generous benefits and stable employment decreased significantly. International corporations, Bosch and Honeywell, now occupy the facility which formerly housed Bendix. LaSalle Square, which once provided major retail opportunities for west side residents, lost its anchor stores, Kroger and Target. The Portage Avenue/Cleveland Road retail and commercial development also contributed to loss of opportunities for the LaSalle Square area. The new commercial development benefited by being part of the airport TIF which provided ample funds for infrastructure improvements to support the increase in traffic and commercial activity. The continued erosion of opportunities coupled with the Portage Avenue/Cleveland Road retail development a few miles north also contributed to a decision by the St. Joseph County Library to announce to close its LaSalle Square Branch and open a new facility located in the new development area. Strong opposition from neighborhood residents and concerned community members convinced the library to maintain and even expand its current operations at LaSalle Square. In addition to above future expansion of the LaSalle Public Library the other major positive development to LaSalle Square occurred when The Faith Apostolic Church saw an opportunity to restore life to LaSalle Square by purchasing, refurbishing and occupying a large part of the vacated areas while continuing to rent to small retail concerns which still occupied space in the shopping area. This provided a springboard for renewal. Another positive development is the migration of young families into the area attracted by the 5 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 4. COMMUNICATIONS (CONT.) affordable, well-maintained housing stock. This demographic shift creates a nice mix of young and elderly single neighborhoods. These positive changes have encouraged local businesses in the area to reinvest by upgrading their facilities. The airport expansion will provide another boost to the area by creating over 400 jobs for cargo handlers. PROPOSED PROJECTS The following infrastructure improvements would enhance economic development by making the area more attractive to business investment and improving employee productivity. • Both LaSalle Square and the library would benefrt from infrastructure improvements, including lighting, signage, landscaping, and other streetscape improvements to increase visual appeal and encourage further development. • A day care center, providing quality child care for working parents, is currently located in LaSalle Square and accessible to employees ofAirport TIF businesses, Honeywell and Bosch. It would benefit from an enclosed play area, with upgraded equipment and ground surfaces and increased safety. • A street realignment where Prast joins Ardmore Trail and additional curb cuts as part of an enhanced entry could facilitate development of the grass covered lot located west of LaSalle Square. • A Transpo hub, with a sheltered waiting area, could enhance transportation opportunities for area residents as well as serving as a transfer station for the Blackthorn route. This would allow residents to seek employment at businesses located throughout the airport economic development area as far north as the Portage Prairie development. • The grassy areas and wooded hill to the west of LaSalle Square could be incorporated into a pocket park system complete with walking paths, exercise trails, and seating areas. Both employees at Honeywell and Bosch and the area residents would benefit from this opportunity. • Infi°astructural improvements, including the removal of gasoline storage tanks at currently vacant site next to the animal hospital on LWW could provide a site appropriate 6 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 4. COMMUNICATIONS (CONT.) for a small grocery and pharmacy. Improvements including a sidewalk along the southern side of Lincoln Way West would also increase access and improve safety. • Upgraded curbs, additional sidewalks, and possibly a roundabout at the triangular commercial area located at Bendix and LWYV could aid the flow of traffic, increase safety for pedestrians, and encourage the stability of the area. OTHER CONCEPTS 1) Create pedestrian access over the railroad tracks to LaSalle Park to connect the north and south sections of the area. 2) Address drainage problems in the neighborhoods located in the LaSalle Square area. 3) Make infrastructure improvements along Bendix Drive to visually connect the LaSalle Square and Cleveland Road developments. 4) Develop an interactive Science and Technology Center in partnership with Bosch, Honeywell, the industries located in the Airport TIF, and local universities. This center would be designed to make area residents aware of science and technology career paths, expose students to the skills needed by industries in the area, and support the training needs of area businesses. Mr. Inks acknowledged receipt of the second letter which was from Jerry Niezgodski, Chairman of the Lincoln Way Nest Gateway Association. Marcia I Jones, President South Bend Redevelopment Commission 227 W. Jefferson, Suite 1200 South Bend, IN 46601 Madame President, I am writing you on behalf of the neighbors of the Lincoln Way West Gateway Association (LWWGA) living in the 7 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 4. COMMUNICATIONS (CONT.) LaSalle Square area. As many of us have lived in the area for decades we have seen the transformation of LaSalle Square from a bustling retail center to an area dominated by non profit and religious organizations with a sincere interest in serving the needs of all residents. It is the opinion of leaders of these organizations and the neighbors living around LaSalle Square that the City of South Bend, especially the Redevelopment Commission, should refocus efforts to develop the LaSalle Square area to better serve the community and most importantly, jump start the revitalization of the Lincoln Way West Corridor's western boundary. At your August 25, 2006 meeting I urged you, on behalf of the neighbors in the LYVYVGA, to extend the boundaries of the Airport Tax Incremental Finance (TIF) district south to include LaSalle Square and a portion of the surrounding neighborhood. It is our belief inclusion in the TIF district is essential to the development of the LaSalle Square area and that continued neglect of this area by the Redevelopment Commission and the City Administration is unacceptable. By using TIF money to improve the infi^astructure, including alleviating drainage problems along Ardmore Trail, improving the appearance of the area and promoting the fact the City does care about this area, we believe the Redevelopment Commission will send a loud and clear signal that the inner city does matter and does offer opportunities for business and residents alike. We view this as a win-win for the City and the neighborhood stakeholders. Neighborhood residents have seen jobs leave from Bendix/Honeyell and others over the years. While we may not be able to impact some decisions by corporations we must do all that we can to show those that are still here that South Bend does actually care and appreciate their being here by offering their employees a pleasing environment in which to work, relax, shop, eat and visit when they are not working. You never know. Perhaps by improving the amenities the area has to offer we might influence both Honeywell and Bosh to consider South Bend as an area to expand in the future. 8 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 4. COMMUNICATIONS (CONT.) The St. Joseph County Public Library recently announced their plans to expand the LaSalle Branch Library in LaSalle Square. We, as a city, should be building on this success rather than ignoring it. There is plenty of land available just waiting to be developed in LaSalle Square, on Bendix Drive and Armore Trail. It is up to the Redevelopment Commission and the City Administration to recognize all the possibilities and the opportunities that developing the LaSalle Square area offers. Whether it's retail, residential, manufacturing or green space, the LaSalle Square are can accommodate them all. Partner with us. Make this happen. Show west side residents that you have not abandoned them and that they do count. The neighbors of the LWWGA thank the members of the Community Forum for Economic Development for their support and leadership on this issue and stand side by side with them in urging you to add LaSalle Square and part of the surrounding area to the Airport TIF. I end this letter the same as my last letter to you. Simply stated, the neighbors and business owners of the LWWGA look forward to working with you to make South Bend's west side an area of which we can all be proud. Sincerely, Jerry Niezgodski Chairman Lincoln Way West Gateway Association Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission acknowledged receipt of the Communications from Charlotte Pfeifer and Jerry Niezgodski. 5. OLD BUSINESS There was no Old Business. COMMISSION ACKNOWLEDGED RECEIPT OF THE COMMUNICATIONS FROM CHARLOTTE PFEIFER AND JERRY NIEZGODSKI THERE WAS NO OLD BUSINESS 9 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS A. Receipt of Bids (1) Receipt of Bids in connection with 1217 S. Walnut St in the Sample-Ewing Development Area. There were no bids received by the RECEIPT OF BIDS (1217 S. WALNUT ST. 10:00 a.m. deadline. B. Tax Abatements (1) Commission approval requested for Resolution No. 2273 approving an application for personal property tax deduction for property located at 2629 Foundation Drive in the Airport Economic Development Area. (Value Production) Mr. Schalliol gave the staff report on the project. Value Production is a modern production machining facility. They provide one-stop shopping for design, prototypes, and production, and is an ISO 9001:2000 certified company. Value Production was established in October 2000. The company manufactures tooling for use in the aero space, automotive, medical, and commercial markets. The company will purchase a new, high-end mill and lathe for its custom aerospace manufacturing needs. The company will invest $500,000 in this new equipment. The total taxes to be abated during the five-year abatement period is estimated at $30,462. The total taxes to be paid during the five-year abatement period is estimated at $15,852. It is estimated that the project will create five new, permanent full-time jobs in the first year of production, representing a new 10 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) B. Tax Abatements () continued... annual payroll of $200,000. The project will also maintain fourteen existing, permanent full-time jobs representing an annual payroll of $475,000. Value Production has had two previous personal property abatements. The CF-1 dated 9/5/06 shows it met the projected costs of the project, but two jobs have been lost instead of four projected to be gained. The property is properly zoned for the proposed use. The project is in the Airport Economic Development Area; therefore the petition for personal property tax deduction must first be approved by the South Bend Redevelopment Commission. The project is qualified for five years of personal property tax deduction under the tax abatement ordinance. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2273 approving an application for personal property tax deduction for property located at 2629 Foundation Drive in the Airport Economic Development Area. (Value Production) (2) Commission approval requested for Resolution No. 2274 approving an application for personal property tax deduction for property located at 3702 Progress Drive in the Airport Economic Development Area. (Parrish/Meyer Machine} COMMISSION APPROVED RESOLUTION N0.2273 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 2629 FOUNDATION DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (VALUE PRODUCTION 11 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) B. Tax Abatements continue ... Mr. Schalliol gave the staff report on the project. Parrish/Meyer Machine, Inc. manufactures jigs, dies, fixtures, and special high-precision parts. The addition of a new Mori-Seiki NEIGHBORHOOD-5000/40 DCG machine will be used for production machining. This machine will allow the company to machine additional parts for its clients, thereby growing the business and employment opportunities. The company will invest $400,000 in the new equipment. Total taxes to be abated during the five-year abatement period is estimated at $24,370. Total taxes to be paid during the five-year abatement period is estimated at $12,681. It is estimated that the project will create two new, permanent full-time jobs in the first year of production, representing a new annual payroll of $50,000. The project will also maintain thirty-four existing, permanent full-time jobs representing an annual payroll of $701,486. Parrish/Meyer Machine has not had any previous tax abatements. The property is properly zoned for the proposed use. The project is in the Airport Economic Development Area; therefore the petition for personal property tax deduction must first be approved by the South Bend Redevelopment Commission. The project is qualified for five years of personal property tax deduction under the tax abatement ordinance. 12 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) B. Tax Abatements continue ... Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2274 approving an application for personal property tax deduction for property located at 3702 Progress Drive in the Airport Economic Development Area. (Parrish/Meyer Machine) (3) Commission approval requested for Resolution No. 2275 approving an application for real property tax deduction for property located at 901 N. Notre Dame Avenue in the Northeast Neighborhood Development Area. (Marc & Jeanette Burdell) Mr. Schalliol gave the staff report on the project. Marc and Jeanette Burdell plan to construct asingle-family residence of approximately 2,400 square feet, with three bedrooms, three bathrooms, four common rooms and atwo-car garage, situated on a 66 x 122 ft lot. The estimated cost of the project will be $330,000. Total taxes to be abated during the five-year abatement period is estimated at $10,262. Total taxes to be paid during the five-year abatement period is estimated at $24,342. The Burdells have not had any previous tax abatements. The property is properly zoned for the proposed use. The project is in the Northeast Neighborhood Development Area; therefore the petition for residential property tax deduction must first be approved by the South Bend Redevelopment Commission. COMMISSION APPROVED RESOLUTION N0.2274 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 372 PROGRESS DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. ~PARRISHIMEYER MACHINE) 13 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) B. Tax Abatements continue ... The project is qualified for five years of real property tax deduction under the tax abatement ordinance. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2275 approving an application for real property tax deduction for property located at 901 N. Notre Dame Avenue in the Northeast Neighborhood Development Area. (Marc & Jeanette Burdell) C. South Bend Central Development Area (1) Commission approval requested for Authorization for Entry Upon Public Property. (School Corporation/Wayne Street Garage) Ms. Greene noted that the Commission took action at its October 6 meeting to approve a First Amendment to Agreement with the School Corporation with respect to installing some gates at the upper level of the Wayne Street parking garage to restrict access to the upper level and to protect the use of the lower level for the general public. If School Corporation employees haven't parked in the gated area, they won't be able to exit the garage without paying. This Access agreement allows the School Corporation's contractors access to the garage to install the gates. We've asked that they coordinate with Greg Frankhouser of Ampco in order to make sure that things get properly installed. COMMISSION APPROVED RESOLUTION N0.2275 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 9O I N. NOTRE DAME AVENUE IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. (MARC & JEANETTE BURDELL) 14 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area () continued... Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the Authorization for Entry Upon Public Property. (School Corporation/Wayne Street Garage) (2) Commission approval requested for Authorization for Entry Upon and the Temporary Use of Public Property Located Within the South Bend Central Development Area. (Sycamore St.) Ms. Greene noted that this is a request for access to property the Commission owns near the Commerce Center. The nearby parking garage is being demolished. The contractors would like to use the Commission's small parking lot and small piece of vacant land as a staging area for the demolition. This Access Agreement authorizes the contractor to enter the Commission's property subject to providing proof of insurance and indemnifying the Commission. It sets a date certain when the Commission's permission to use the sites terminates. Should the Commission have an opportunity to dispose of the property before that date certain, written notice may be sent to terminate the access right. The document before the Commission contains some blank spaces for the legal name of the contractor and the dates to be added. It will be finalized and brought to the Commissioners for their signature upon completion. COMMISSION APPROVED THE AUTHORIZATION FOR ENTRY UPON PUBLIC PROPERTY. (SCHOOL CORPORATIONIWAYNE STREET GARAGE) 15 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area continue ... Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the Authorization for Entry Upon and the Temporary Use of Public Property Located Within the South Bend Central Development Area. (Sycamore St.) D. Sample-Ewing Development Area (1) Commission approval requested for Access Agreement with Lock Joint Tube for access to 1217 South Walnut Street. (former Kokoku Wire site) Mr. Schalliol explained that on September 14, 2006 the Commission acquired the former Kokoku Wire property from the Industrial Revolving Fund. Prior to that time Lock Joint Tube had an access agreement with the Industrial Revolving Fund. Since the Commission now owns the property we need a new access agreement. The agreement allows Lock Joint Tube and its agents to be on the site, do some basic environmental and site testing in preparation for its eventual purchase of the site. It also allows Lock Joint Tube to store some items at the site. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the Access Agreement with Lock Joint Tube for access to 1217 South Walnut Street. (former Kokoku Wire site) COMMISSION APPROVED THE AUTHORIZATION FOR ENTRY UPON AND THE TEMPORARY USE OF PUBLIC PROPERTY LOCATED WITHIN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (SYCAMORE ST.) COMMISSION APPROVED THE ACCESS AGREEMENT WITH LOCK JOINT TUBE FOR ACCESS TO 121 SOUTH WALNUT STREET. (FORMER KOKOKU WIRE SITE) 16 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (1) Commission approval requested for professional services in the Airport Economic Development Area. (Survey/engineering) Mr. Witwer noted that staff has solicited and received a proposal from Wightman Petrie for the relocation of a crosscut on Cleveland Road at the PEI Genesis site. The crosscut is being relocated as part of an effort to retain PEI Genesis in South Bend. It will allow the company to build a facility that is twice as large as its current facility which will be expandable to over 400,000 sft. PEI Genesis will also be creating over 150 new positions over the next six years. The crosscut will also provide Water Works with improved access to its well field. The amount of the proposal is $17,500. Staff recommends accepting the proposal. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal for professional services and accepted the proposal from Wightman Petrie for survey and engineering services in the Airport Economic Development Area. (2) Staff report on Airport Economic Development Area Expansion Investigation (LaSalle Square) Mr. Inks noted that the Commission asked staff to perform an investigation of the feasibility of expanding the Airport Economic Development Area TIF to include LaSalle Square and using AEDA TIF to COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR PROFESSIONAL SERVICES AND ACCEPTED THE PROPOSAL FROM WIGHTMAN PETRIE FOR SURVEY AND ENGINEERING SERVICES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA 17 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area continue ... make improvements to the LaSalle Square Shopping Plaza and five other properties. Staff is prepared at this time to present the results of its investigation. Mr. VVitwer summarized the findings. The area asked to be included into the Airport Economic Development Area is comprised of three not for profit organizations making up about 90% of the land area. There are four for-profit businesses in the study area, and one vacant building. In talking with former retailers from LaSalle Square, and to local retailers, it was found that shifts in retail markets to the Portage Cleveland area and to Western Avenue and further south were the cause of businesses locating out of the area. This, along with other factors, is an indication that retail uses will be hard to bring back. In 2001 the City paid a consultant to do a study on the LaSalle Square area. That report's analysis and recommendations are consistent with what the staff determined caused the shift in development that has occurred in the area. The three non-profit organizations in LaSalle Square are all part of the community, and have chosen this location as a home for their operations. The Airport Economic Development Area could be expanded to include LaSalle Square, 18 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area continue ... providing funding from the TIF area to be used in accordance with Indiana statute. Or a new redevelopment area could be established, including other properties that could potentially be assessed at a higher value in the future to capture more increment and more benefit. Staff recommends that property owners and interested groups present an acceptable plan to the Redevelopment Commission to determine which alternative is the most effective action to complete the goals of that plan. Mr. King thanked the staff for its investigation and preparation of the subsequent report. He noted that the staff and the Commission are asking the neighborhood group to help develop a plan for the area. Mr. VUitwer added that the neighborhood group will also help staff decide which alternative would be the best one. Mr. King noted that this has been a progress report on the investigation the Commission asked the staff to perform, so it's not a public hearing and there won't be formal action taken to expand the area or create a new development area today. However, he opened the floor to anyone present who has an interest in the project and wished to speak 19 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area continue ... Ms. Greene noted that there will be no final action taken today. The Commission will simply accept the information presented. Should the Commission decide to expand the development area or create a new redevelopment area, it would have a series of public hearings on the project. COUNCIL MEMBER PFEIFER: Representing the 2nd District on the South Bend Common Council. It really is an honor and pleasure to be here this morning. I really thank both Nick and Shawn, and especially Karl King and Marcia for meeting with us and following up on our request. This is something that isn't any kind of "spur of the moment" or isn't...again, I have to be conscious of the things that are written and said. I want you to know that this is not anything that I'm ramming down anyone's throat. It really is an opportunity for the whole city to take a look at economic development in the inner city. These discussions have gone on for years, quite frankly. The Council is looking for any opportunity it can find to spur economic development in the inner city, and, at the same time, continuing to support the development on the edge of the city. And, of course, we support development in the county and in Mishawaka. We know that any time something new comes into our community, we all benefit. I wanted to make that really clear. 20 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area continue ... As a South Bend Common Council member, particularly in the 2nd District, my responsibility to my constituents is to look at what is happening in the 2nd District. You all know LaSalle Square was once quite a thriving commercial center where we had Target, Krogers and all kinds of things neighbors could just walk to. I live close enough that that's where I did most of my, quite frankly. It was very sad that as businesses left that area, as it's sad any time anything leaves South Bendwe all kind of grieve. So all we're trying to do is take a look at supporting the Administration, supporting Redevelopment, supporting any entity that's trying to do something to spur and stimulate economic development in the city. We just see this as an opportunity to make this additional use of what's happening at Blackthorn and the airport, which we think is wonderful. It's great. We want to just expand it inside to include LaSalle Square because we think this would be a good use of those funds for economic development. I just want to make sure that Karl and Marcia, the whole Commission, and these young men in particular, I really appreciate it. Of course we're going to continue to work on this and tweak. Thanks, Don Inks. We're all in this together. Today I did go ahead and submit a plan that was put together as requested. We're all so busy, I didn't want it to get lost somewhere. So, it's in there now. We'll continue 21 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area continue ... working on it for the best interest of the city as a whole and the 2nd District and LaSalle Square in particular. MR. KING: Charlotte, the plan that you submitted, it represents a consensus of your and your neighbors and residents that you've been working with? COUNCIL MEMBER PFEIFER: Yes. That's in my cover letter. It's there and we can continue working on it. MR. KING: Thank you for your interest and your leadership. MS. GREENE: That letter and the plan that was submitted with it will be incorporated by reference into the entire minutes. So they will be part of the public record. MR. NIEZGODSKI: Lincolnway West Gateway Association. I believe I submitted a letter. You should have it. Again, to echo Charlotte's words. Thank you for considering this action. We thank the city officials who have worked so far on this. Just to touch on a few things. As far as a retail segment. If there is to be a retail component at some point, I would suggest possibly interviewing some of the entities that used to be there and finding out the true reason why they left. In some discussions we've had with some of the stakeholders there, some of the retail that was there was very successful. Extremely successful. So it 22 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area continue ... tells me that there is a population there that will support retail that goes in there. If it's jobs, this area has a lot of... We like to see it as a glass half full. We think this is a great opportunity to jump start the redevelopment of the Lincoln Way West corridor on the western boundaries and work our way back in. The city's already started here, close to town around the Chapin St. area and they are doing a great job. We look at this as an opportunity to start at the other end, and hopefully we can meet in the middle like a great railroad of many years ago. Also, we believe that anything we can do to develop this area can only be a benefit to South Bend. We are constantly reading of businesses leaving downtown and other areas for Mishawaka. We believe if we pay attention to the stakeholders who are already there, especially the businesses that are already there (Honeywell and Bosch) and all those other businesses in the Airport Industrial Park, if we can do anything to make that area more appealing to them, it's going to be in our best interest. It might be the difference between gaining jobs and losing jobs. So, we look forward to working with you on this. We thank all of you who've been in touch with us so far. We look forward to somehow bringing this to a great resolution for all those interested. MR. WOLFSON: Citizen representative to the Common Council's Community & Economic Development Committee and 23 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area continue ... professor of Economics at Indiana University. I support the initiative from Charlotte Pfeifer and the residents from the LaSalle Square area. It's exactly what a number of us had proposed at an earlier Redevelopment Commission, that, if the Commission were going to incorporate Portage Prairie into the Airport Economic Development Area, then at the same time it should also look at incorporating the LaSalle Square into the same district. So, I think it's a very positive development. We support it. The organization I'm working with, Community Forum for Economic Development, sees as a key priority the economic development of the inner city areas and the downtown. We need to pay special attention to that to make sure that everyone benefits in the economic development of our city. MR. KING: I want to thank everyone here today, and the larger group that attended our earlier meeting. Often the Redevelopment Commission, and the Common Council too, do a lot of work and try real hard on things and you wonder if anyone cares. So, it's a joyful event when we have the public show up and take an active interest in the things that we're doing and encouraging us to do things that will, in fact, better the community. Thanks to all who are here today and to your co lle ague s who were here before. 24 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area continue ... Shawn, I was also going to ask you if you would step through for everyone here what the process is for moving this forward. MR. PETERSON: With the comments as far as expanding the Airport Economic Development Area, expanding that into or creating a redevelopment area or a different economic development area, what you are really doing is creating an allocation area to take advantage of tax increment financing. What the report has shown is that this could be an area that would benefit if we did it at the right time with the right type of use or project that we could take advantage of a tax increment financing district to be able to finance improvements and maybe assist in some sort of development project. All of what we're doing here is, it's a tool to be used to help a development, to help something move forward. The proposal was to expand the Airport Economic Development Area. That may be the best proposal, but we don't know yet because we're not sure yet what the project is or what the timeline is. Currently the Airport Economic Development Area has obligations, bonds, etc. outstanding to where a different option may be more beneficial, depending on what the project is, since there would be no obligations on a new allocation area. There are a lot of things that will come into play as to the process. Because it's a tool, the first thing is to get the input from the community on what they would like to see there. The second thing is to finalize that 25 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area continue ... proposal and look for a type of development and get a development partner or other bodies to figure out what public improvements, what other improvements and incentives are necessary to get a development there or to accomplish that. And then, it would be starting the process of declaring or expanding the area to affect the designation of that area as an allocation area and to make it available to use for tax increment funds. So, we are beginning the process of going down that road. I think as we look at the plan and what they want, what the proposal is to have, then we can look to finalizing that and looking for a development and then we look for actually making it a part of either the airport area or its own, or maybe a merger of the two, to be able to affect development as proposed there. So, the actual action of designating the LaSalle Square area is not advisable until we know the exact project or goal we want to affect there and there is a development there ready. Because, once you do that you only have thirty years for it to be an allocation area. If you start that too quickly and you don't have the available stream of revenues necessary to create funding to affect what you want to have done. So it really depends upon the project and it depends upon what the neighborhood wants to see there, which is where we are at now. That is the whole process as we move forward. We will continue along that once all the pieces are pulled together. 26 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area continue ... MS. GREENE: I would just like to remind the Commission, that it has created two new redevelopment areas in the last three to five years, one of those being the Southside Development Area, the other being the Northeast Development Area. It took a great deal of time before you got to the point of declaring both of those development areas. And they both were, as Shawn said, somewhat project driven. It is key at the point in time that you actually declare the area with respect to how you are going to have that revenue stream over time. It is a long process sometimes, but you have to start somewhere. MR. KING: Well, it seems to me, that we have a good start at the next report and Council Member Pfeiffer has submitted initial plans that we have to work on. Nick, did you have anything further? You are asking us today to authorize further work on an analysis of the plans submitted by the neighborhood. MR. VUITVUER: That is correct. MR. KING: Commissioners, any comments or questions? MR. BLAKE: I have a question. You say `redevelopment area' and I need to understand better what `redevelopment area' and `economic development area' are. It isn't a redevelopment area now? 27 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area continue ... MS. GREENE: No, this is not in a redevelopment area or an economic development area, and again, one of the reasons that you look at the entire area, you look at the project, and how does it fit. A redevelopment area provides you with one other tool, primarily, that you don't have in an economic development area: the power to use eminent domain if necessary. You don't have that in an economic development area. As you look to either expand the existing Airport Economic Development Area, among other things, not only are you looking at the financial impact of adding that area, expanding the existing area, but you are also looking at, whether there is an additional tool that you are going to need in your tool kit in order to accomplish a development plan that you come up with for that area. If you see that there is the potential that you would need to use eminent domain in order to accomplish a development plan then you want to look more toward a redevelopment area rather than to expand an existing area or to create a new economic development area. MR. BLAKE: You don't have one that would be both an economic development area and a redevelopment area? MS. GREENE: We looked before if we could STIF a TIF, but I don't think we ever determined that we could redevelop an economic development area. 28 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area continue ... MR. PETERSON: One other aspect. In a redevelopment area there is potential to access federal and state grants that you may not be able to use in an economic development area. So, it is project driven because you look at it and say, here is a project, maybe it is a mixed-use project, with retail and some housing, that allows us to take advantage of some tax credits that the federal government allows us to have in this area. That may be applicable to this area, so we don't want to get too hasty and say, "let's do this." Again, the goal is not to make it an area, but to have development there. How the area is designated is the tool to help develop it. The goal is to define the development and utilize all the tools we have, including, designating an area, whether it is economic or redevelopment or expansion of another. That will be the tool used to bring in that development. MR. DOWNES: If in fact it is determined that the best alternative is to expand the Airport Economic Development Area, is there any requirement that it has to be contiguous? MR. PETERSON: It would need to be contiguous, and it would be possible to make it contiguous. It is a matter of, is it the best decision. We won't know that until after we look at the allocations, the effects of the 2% circuit breaker, and there are a lot of things that we look to bring into this development that will dictate which tool we use. 29 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area continue ... MR. KING: And the plan we use. MR. PETERSON: Exactly. MR. BLAKE: I read over the plan the other night, and I like what is there. I would like to see something in addition to redevelopment and economic development. I would like to see wealth creation because like the campaign that says, "enough is enough." If "enough is enough" is true then "not enough is not enough" is also true. I don't think that redevelopment and economic development will be enough to eliminate poverty. You need more than just poverty elimination you need wealth creation. One of the ways to get rid of poverty is increase the wealth. I don't know exactly how the city does that, or whether the city has even considered doing it, as far as the concept of wealth creation. Perhaps the City should look at it. Private businesses, of course, look at wealth creation, that is the purpose of corporations. Bringing poor people into the mix of wealth creation, then you can bring them into the whole process and they begin to participate in a different way with a different attitude, with a different perspective. When we begin to talk about wealth creation we get into a real transformation within those pocket areas. So, I think in addition to economic or redevelopment, we also consider wealth creation and the elimination of poverty in those same areas. This takes us to a different level, a different process of thinking, a different approach. 30 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area continue ... MS. GREENE: When you are talking about an economic development area or a redevelopment area, one of the findings that the Commission makes, with respect to either one, is that you are doing something that is going to benefit the welfare of the community. To the extent that you are talking actual wealth creation, perhaps that's a component of it. That's part of your findings as you go forward. Is what is proposed to the Commission as a project, will it be a viable project that will ultimately result in a benefit to human welfare. MR. BLAKE: Welfare tends to relate to a `hand out' rather than a `hand up,' so if we leave people at the same level, and this is what I am thinking we need to do, is to go beyond poverty and just beyond welfare but self care. We need to bring them up to a different level. That needs to be intentional. If it is not intentional, just like the intentional things like redevelopment, intentional in regard to economic development, I am saying, intentional regarding self care and civil welfare, `hand up' instead of `hand out.' The process, the thinking, the focus, and again, I don't how the city will do that, how the city participates in this. It may not be able, but if these things that it is doing, the thinking process needs to go beyond that because it doesn't seem to have resolved the problems over the multitude of years. The process that has been taking place, and then poverty gets worse rather than better, that means somehow, somewhere, we have to 31 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area continue ... change the process. You have to add something or take away something. You have to mix it up somehow. I am not sure the City is used to talking about wealth creation and poverty innovation in that sense, but I think we should. MR. KING: Does that mean you want to move to work with Councilwoman Pfeiffer and the other neighbors to analyze this plan and move the process forward? MR. BLAKE: Oh, yes. And, I would like to work on the process of wealth creation, as well. Upon a motion by Mr. Blake, seconded by Mr. Downes and unanimously carried, the Commission acknowledged receipt of the staff's report on the potential Airport Economic Development Area expansion and to authorized staff to analyze the plan submitted by Councilwoman Pfeiffer and work with Councilwoman Pfeiffer and other representatives ofthe neighborhood to move forward the process of analyzing the future action with respect to either expansion of the AEDA or creating of a new redevelopment area, which ever best serves the purposes of the plan. Mr. King again thanked those present representing the neighborhood for the work they did and for coming today. The Commission looks forward to working with them as we move this process forward. COMMISSION ACKNOWLEDGED RECEIPT OF THE STAFF' S REPORT ON THE POTENTIAL AIRPORT ECONOMIC DEVELOPMENT AREA EXPANSION AND TO AUTHORIZED STAFF TO ANALYZE THE PLAN SUBMITTED BY COUNCILWOMAN PFEIFFER AND WORK WITH COUNCILWOMAN PFEIFFER AND OTHER REPRESENTATIVES OF THE NEIGHBORHOOD TO MOVE FORWARD THE PROCESS OF ANALYZING THE FUTURE ACTION WITH RESPECT TO EITHER EXPANSION OF THE AEDA OR CREATING OF A NEW REDEVELOPMENT AREA, WHICH EVER BEST SERVES THE PURPOSES OF THE PLAN 32 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 6. NEW BUSINESS (CONT.) F. South Bend Medical Services District There was no business in the South Bend Medical Services District. G. West Washington-Chapin Development Area There was no business in the West-Washington Chapin Development Area. H. South Side Development Area (1) Staff report on acquisition of property in the South Side Development Area. Item 6.H. (1) was tabled. ITEM 6.H.(1) was TaBLED I. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. J. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. K. Other (1) Commission approval requested for Community Development Program Contract for Section 108 Loan Funds. (3/2/06 -12/31/06) Item 6.K. (1) was tabled. ITEM 6.K.(1) was TaBLED 7. PROGRESS REPORTS Mr. Witwer noted that the Commission has three PROGRESS REPORTS projects going on right now in the Airport Area. The 33 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 7. PROGRESS REPORTS (CONT.) first is an extension of Voorde Drive from Sheridan west into the airport to increase access to the airport. The project is on schedule and may be finished this year or in the spring. The extension of Voorde will also open some development sites that have been land locked. The second project is the repaving of Bendix and Lathrop. All o f the existing pavement was removed. It should be completed about November 6. The third project, Dylan Drive in the Portage Prairie Airport Expansion Area, should be finished in the spring. Excavation ran into an underground river. Mr. Schalliol noted that there have been three development areas created in the last five years. The Douglas Road Development Area is 34 acres. Holladay Corporation is doing a major construction project on the north side of the State Road 23. There is also small development on the southeast side and a third one that really makes up the 34 acre development area. There have been $3.5 million dollars in permits for the sites, not counting prep work or land acquisition costs. 51,000 sft of development space has been created in the area. The original intention of the designation of the Douglas Road Economic Development Area was to make improvements to Douglas Road. we hope to move forward with that construction in the next year or so. The investment in the development area will average about $101,000 per acre.. Mr. Schalliol also gave the progress report on Erskine Commons. Lowe's will officially open Tuesday morning at 6:00 a.m. VUalmart should be open late winter or early spring. The third development site is for Gates Toyota. After six years and a lot of work, this area is really moving ahead. VUe were to have the Ireland Road improvements completed by October 31 across the front of the project site. Next Thursday the road will be opened and the traffic signals activated, ahead of schedule. There are 388,000 feet of commercial space on the site to date, and $16.6 million in investment in 34 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 7. PROGRESS REPORTS (CONT.) just the two buildings. Chick-Fil-A will be opening the summer of 2007. Ms. Greene said TJ Maxx will open in Erskine Village on Sunday. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is scheduled for Friday, November 3, 2006 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Downes made a motion that the meeting be adjourned. Mr. Blake seconded the motion and the meeting was adjourned at 10:59 a.m. Donald E. Inks, Director NEXT COMMISSION MEETING ADJOURNMENT Marcia I. Jones, President 35 South Bend Redevelopment Commission Regular Meeting -October 20, 2006 EXECUTIVE SESSION October 20, 2006 The South Bend Redevelopment Commission met in Executive Session on Friday, October 20, 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: Karl King, Vice President; Greg Downes, Secretary; Hardie Blake. Others Present: Sharon Kendall, Executive Director, Community & Economic Development, Don Inks, Director, Economic Development, Attorney Cheryl Greene, Pam Paluszewski, Shawn Peterson, Bill Schalliol, Jennifer Laurent, Tim Williams, Nick Witwer, Bob Mathia, Andy Laurent and Catherine Fanello. 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 36