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HomeMy WebLinkAbout09-13-11 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING September 13, 2011 4:00 p.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Members Absent: Ms. Stephanie Spivey Legal Counsel: Mr. Charles S. Leone, Esq. Mr. Lawrence Meteiver, Esq. Redevelopment Staff Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. David Relos, Economic Development Specialist Mr. Matthew Sikora, Economic Development Specialist Ms. Debrah Jennings, Property Manager Mr. Jitin Kain, Economic Development Specialist Others Present: Mr. Tom Price, Mayor's Office Mr. Jeffrey Gibney, Executive Director Ms. Beth Leonard-Inks, Community & Economic Dev. Ms. Patricia Lesniewicz Ms. Rita Kopala Ms. Mo Miller Ms. Jackie Stevenson Mr. Mark Seaman Mr. Jim Bognar Mr. Steve Hartz, Career Academy Ms. Tamara Nicholl-Smith, DTSB Mr. Aaron Perri, DTSB Mr. Charles Loeser Mr. Larry Garatoni South Bend Redevelopment Commission Regular Meeting—September 13, 2011 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Tuesday, September 16, 2011. Upon a motion by Mr. Downes, seconded by Mr. COMMISSION APPROVED THE MINUTES OF THE Alford and unanimously carried, the Commission REGULAR MEETING OF TUESDAY,AUGUST 23, approved the Minutes of the Regular Meeting of 2011. Tuesday, August 23, 2011. 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted September 13, 2011 for approval. 305 FUND SBCDA BOND ADG 4,000.00 Pedestrian Bridge ADG 6,500.00 Island Park Pavilion 324 AIRPORT AEDA WITT Appraisal Services, Inc. 350.00 11511 Kemble Ave Hull &Associates, Inc 2,033.25 Oliver Industrial Park Area C Hull &Associates, Inc 300.00 Studebaker Area A Legal Services Studebaker Cost Plews Shadley Racher& Braun, LLP 2,804.66 Recovery/Oliver Plow Works South Bend Water Works 166.98 Water Services for Unity Gardens Dore &Associates 263,681.02 Studebaker Area A Demolition PH IV Meridian Title Corporation 69,149.12 622 E Sample E Closing Meridian Title Corporation 201,539.00 921 N Bendix Closing DLZ 37,830.00 Studebaker Area A Demolition PH IV Weaver Boos Consultants, LLC 14,094.11 Studebaker Area A Demolition PH IV 1 st Financial Bank, Escrow Agent 9,877.95 Escrow Dore &Associates South Bend Water Works 159.08 1000 Fellow Sprinkler System Hathaway 2, Inc. 5,527.07 Ignition Park South Bend Park & Recreation 9,650.00 Lawn Services City Properties Sopko, Nussbaum, Inabnit & Kaczmarek 7,256.25 Legal services Sopko, Nussbaum, Inabnit & Kaczmarek 23.67 Blue Waters Group 74,207.83 Ignition Park Marketing & Other Michaels Appraisal Services 375.00 1511 S Kemble Meridian Title Corporation 49,571.52 1521-1527 Kendall Closing Meridian Title Corporation 4,292.07 1530 Kendall Closing Meridian Title Corporation 65,615.91 1527 Kendall LL Geans Construction 1,771.70 Oliver Plow Memorial Oliver Trail 2 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 3. APPROVAL OF CLAIMS (CONT.) 324 AIRPORT AEDA continued... Fuebringer Landscaping & Design, Inc. 75,453.28 Oliver Plow Memorial Oliver Trail C & E Excavating 143,007.48 Trade Drive DLZ 4,093.00 So. Bend Olive Rd/Pine Rd DHA 1,125.00 Oliver Plow Trail Abonmarche 7,800.00 Nimtz Parkway Multi-use Path Design Mayflower/ Hutsfeild Sq Abonmarche 20,024.36 Infrastructure 621 E Jefferson Blvd Streetscape Abonmarche 600.00 Modernization Project Abonmarche 4,100.00 SR 23 and Douglas add Turn Lane C & E Excavating 122,748.08 Mayflower Blvd C & E Excavating 188,668.14 Erskine Detention Pond Christopher B Burke 4,849.36 Demo of 1503/ 1505 Prairie Ave Hull &Associates, Inc. 958.16 Consulting Service Oliver Hydroseed Inc. 37,186.20 Voorde Park South Bend Tribune 160.98 Michaels C. Machlan, PE 240.00 LaSalle Square Ph I Abonmarche 37,300.00 LaSalle Sq Roadway & Utility Design DLZ 9,250.00 Oliver Corridor Ritschard 3,483.55 Demolition at 604 S Scott St. Abonmarche 1,935.00 Mayflower Blvd Heppenheimer& Korpal 5,700.00 Quiet Title Actions for 14 Parcels 420 FUND TIF DISTRICT-SBCDA GENERAL DTSB 30,000.00 Downtown Beautification Program South Bend Water Works 35.91 325 S Lafayette Blvd Wightman Petrie 7,650.00 302 W Monroe Demo Indiana Michigan Power 131.55 329 Lafayette Indiana Michigan Power 7.49 325 S Lafayette Indiana Michigan Power 203.64 237 N Michigan St. Rose Pest Solutions 99.00 LaSalle Hotel South Bend Park & Recreation 1,260.00 Lawn Services City Properties Sopko, Nussbaum, Inabnit & Kaczmarek 5,400.00 Legal services Larson Daniels Construction 54,486.44 Coveleski Storm Water System L.L.Geans Construction Company 67,480.40 Franklin/Jefferson Streetscape NIPSCO 57.90 755 S Michigan St. N I PSCO 34.00 329 Lafayette Rose Pest Solutions 99.00 LaSalle Hotel DTSB 13,125.00 Downtown Beautification Program 3 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 3. APPROVAL OF CLAIMS (CONT.) 422 FUND WEST WASHINGTON DISTRICT South Bend Parks & Recreation 180.00 109-111 N Taylor St. South Bend Tribune 101.62 Sopko, Nussbaum, Inabnit & Kaczmarek 1,102.50 Legal services 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT DLZ 1,628.75 Engineering Work ARC 46.05 Taylor St & Ignition Park 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA#1 South Bend Park & Recreation 390.00 Lawn Services City Properties Christopher B Burke 3,928.50 Erskine Detention Pond Christopher B Burke 780.50 Demolition of 748 Hawbaker 19,469.00 Fellows Street Corridor Christopher B Burke Improvements 433 FUND REDEVELOPMENT ADMINISTRATION GENERAL Baker& Daniels 1,058.00 Legal Service $ 1,708,214.03 Upon a motion by Mr. Downes, seconded by Ms. King COMMISSION APPROVED THE CLAIMS and unanimously carried, the Commission approved the SUBMITTED SEPTEMBER 13,2011,AND ORDERED Claims submitted September 13, 2011, and ordered THE CHECKS TO BE RELEASED. 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 Mr. Inks asked permission to add an item of New Business to the Agenda: Item 6.C.(6)the transfer of real property to the City of South Bend, Indiana. There was no objection 4 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) A. Public Hearing (1) Public Hearing on Resolution No. 2936 appropriating tax increment financing revenues from Allocation Area No. 1 Fund for the payment of certain obligations and expenses related to the Airport Economic Development Area Allocation Area No. 1. Ms. Leonard-Inks noted this Is the third appropriation of the Airport Economic Development monies for 2011. This will appropriate the remaining funds in the AEDA TIF: $500,000 or $600,000. On December 31, 2011, the city will receive another $5,200,000. Mr. Varner asked if all projects would be completed this year to which Ms. Leonard- Inks replied that we may need to encumber some. Mr. Inks responded that the city is not encumbering just to tie up funds. These are actual contracts that have been bid and awarded for projects. The city is not encumbering any funds that there is no actual contractual obligation to proceed with. There are items in our budget that have not been encumbered such as the first piece of infrastructure for Ignition Park. The city is in the process of designing that but has not bid the job out. There were enhancements to the Data Realty Building that have not been encumbered but it is in the budget. In past years, there were a list of projects that were hoped to be done but all of them were not gotten to. This year staff has only been appropriating as we need the money for specific projects. The money that has been appropriated to date is completely tied up in projects that have been approved by the 5 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Commission. Many have been out to bid, and we now have contracts behind those bids. Mr. Inks noted that the public hearing file is complete, containing (1) a copy of Resolution No. 2935 determining to make the appropriation and setting the public hearing on Resolution No. 2936; (2) a copy of the Notice of Hearing; (3)a copy of Resolution No. 2936, the subject of the public hearing; (4) an affidavit from Jacki Krolczyk, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on September 2, 2011; and (5) an affidavit from Richard Andrysiak, Classified Manager of the Tri- County News, that the Notice of Hearing was published in that newspaper on September 2, 2011. Ms. Jones opened the public hearing for PUBLIC HEARING ON RESOLUTION No.2936 anyone who wished to speak for or against Resolution No. 2936. There was no one who wished to speak. Ms. Jones closed the public hearing for whatever action the Commission wished to take. (2) Consideration of Resolution No. 2936. Upon a motion by Ms. King, seconded by COMMISSION APPROVED RESOLUTION No.2936 Mr. Downes and unanimously carried, the APPROPRIATING TAX INCREMENT FINANCING Commission approved Resolution No. 2936 REVENUES FROM ALLOCATION AREA NO. I FUND FOR THE PAYMENT OF CERTAIN appropriating tax increment financing OBLIGATIONS AND EXPENSES RELATED TO THE revenues from Allocation Area No. 1 Fund AIRPORT ECONOMIC DEVELOPMENT AREA for the payment of certain obligations and ALLOCATION AREA No. 1. 6 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) A. Public Hearing (2) continued... expenses related to the Airport Economic Development Area Allocation Area No. 1. B. South Bend Central Development Area (1) Proposal for Michigan Street Shops Holiday Retail Program. Ms. Nicholl-Smith noted that last year, with great success, DTSB launched the region's first Holiday Pop-Up Shop program. Due to last year's success, the city intends to offer established business operators a no-cost, short-term lease from November 1, 2011 through January 8, 2012 for both 121 and 123 S. Michigan Street. The program will be offered through an application process. Program participants will be granted access to the store-fronts as early as October 15th to set-up their stores. Stores will complete set- up by October 31st and ready to open for business by November 1st. The stores will have their grand openings November 4th in conjunction with the DTSB First Friday event. Participants will be allowed time in January to vacate the spaces after the official closing date of January 8. Staff recommends approval of this year's Holiday Pop-Up Shops program. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE PROPOSAL FOR THE Mr. Alford and unanimously carried, the MICHIGAN STREET SHOPS HOLIDAY RETAIL Commission approved the proposal for the PROGRAM. Michigan Street Shops Holiday Retail Program. 7 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) Staff report on Redevelopment Retail revised 2011 budget. Ms. Jennings noted that Redevelopment Retail has incurred additional expenses not appropriated in the original 2011 budget. Expenses such as $4,300 for build-out of Brunos, $2,261 for the Pop-Up Holiday Shops, program $2,000 to clean out the State Cafe for Vesiuvio Pizza. The HVC System in the kitchen at the former State Cafe has gone out which will cost and additional $14,000 to replace. Staff is requesting approval to set a public hearing for 4:00 p.m., October 25, 2011, on a revised 2011 budget for the Redevelopment Retail, also known as the Michigan Street Shops. Upon a motion by Mr. Downes, seconded by COMMISSION AUTHORIZED ADVERTISING FOR A Mr. Varner and unanimously carried, the PUBLIC HEARING FOR OCTOBER 25,2011,ON Commission authorized advertising for a THE REVISED 2011 BUDGET FOR REDEVELOPMENT RETAIL public hearing for October 25, 2011, on the revised 2011 budget for Redevelopment Retail. (3) Proposal for Phase 11 Environmental Assessment of former Troeger Sheet Metal site at northeast Jefferson and Niles Streets. Mr. Relos noted that staff solicited a proposal from Wightman Petrie Inc. for a Phase II site assessment at the former Troeger Sheet Metal site at Jefferson&Niles. The site is bounded by Washington, Niles Ave., Jefferson and a north/south alley. In 2010 the Commission had a Phase I 8 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) continued... assessment performed at that site and later acquired the site. The Phase I assessment identified a Recognized Environmental Condition caused by leakage from a former 6,000 gallon underground storage tank (UST). When this UST was removed in 2003, the levels of certain petroleum based chemicals were above residential levels. No soil testing has been completed since. On June 28, 2011, the Commission approved an Agreement for Sale of Land for Private Development with David Matthews for this site. This development will include residential town homes. Because the soil has not been tested for approximately eight years, and because of the site's proximity to the river, it is possible the chemical levels are now below residential levels. A Phase II assessment is needed to determine the environmental status now. This Phase II will include a Ground Penetrating Radar Survey; four Geoprobe soil samples, testing two soil samples from each; and a Geoprobe well installation for ground water testing. The fee for services is a cost not to exceed $6,535. Staff requests approval. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED PROPOSAL FOR PHASE Mr. Varner and unanimously carried, the II ENVIRONMENTAL ASSESSMENT OF FORMER Commission approved Proposal for Phase II TROEGER SHEET METAL SITE BY WIGHTMAN PETRIE IN THE NOT-TO-EXCEED AMOUNT OF Environmental Assessment of former $6,535. Troeger Sheet Metal site by Wightman Petrie in the not-to-exceed amount of$6,535. 9 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) (4) Easement Agreement with Kimberly- Clark for parking lot associated with Stephenson Mill Apartments. Mr. Meteiver noted that Kimberly-Clark, the company which operates Stephenson Mills Apartments, has contacted the city requesting to convert the existing lease of the associated parking lot to an easement for that lot. The city had been contacted previously to extend the lease to match the term of the new financing for the apartments, and we did so. After further financing applications made by Kimberly-Clark, the company has learned that it would be advantageous to their financing program if their interest in the parking lot was an easement instead of a lease. The documents, submitted today, convert the lease to an easement and extend the term of the easement to the same term as the previously approved lease extension. The lease extensions were held in our file pending completion of Kimberly-Clark's financing application. The lease extensions will be disposed of and replaced with these documents. The Commission's approval is requested. Mr. Meteiver noted that staff anticipates similar documents for the Central High project will be forthcoming also as the refinancing of that project moves forward. Upon a motion by Ms. King, seconded by COMMISSION APPROVED THE EASEMENT Mr. Alford and unanimously carried, the AGREEMENT WITH KIMBERLY-CLARK FOR Commission approved the Easement PARKING LOT ASSOCIATED WITH STEPHENSON MILL APARTMENTS. Agreement with Kimberly-Clark for parking lot associated with Stephenson Mill Apartments. 10 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) (5) First Amendment to Parking Agreement with Kimberly-Clark for parking lot associated with Stephenson Mill Apartments. Upon a motion by Ms. King, seconded by COMMISSION APPROVED THE FIRST Mr. Alford and unanimously carried, the AMENDMENT TO PARKING AGREEMENT WITH Commission approved the First Amendment KIMBERLY-CLARK FOR PARKING LOT ASSOCIATED WITH STEPHENSON MILL to Parking Agreement with Kimberly-Clark APARTMENTS. for parking lot associated with Stephenson Mill Apartments. (6) Easement Conversion Agreement with Kimberly-Clark for parking lot associated with Stephenson Mill Apartments. Upon a motion by Ms. King, seconded by COMMISSION APPROVED THE EASEMENT Mr. Alford and unanimously carried, the CONVERSION AGREEMENT WITH KIMBERLY- Commission approved the Easement CLARK FOR PARKING LOT ASSOCIATED WITH STEPHENSON MILL APARTMENTS. Conversion Agreement with Kimberly-Clark for parking lot associated with Stephenson Mill Apartments. (7) Resolution No. 2932 amending the Development Plan for the South Bend Central Development Area and adding an interest in one or more parcels to the List of Parcels to be Acquired (former Wharf site). Mr. Sikora noted that Resolution No. 2932 begins the process to amend the SBCDA Development Plan to add 318 E. Colfax Avenue (the former Wharf Restaurant)to the list of properties to be acquired. This property has already been assessed and its potential acquisition found to be consistent with the goals and objectives of the East Bank Village Master Plan. 11 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (7) continued... Staff has recently been made aware of the current owner's interest in selling the property. In order to be in a position to negotiate in a timely manner, the property needs to be added to the acquisition list. Based on preliminary discussions the expected acquisition cost for the property will be approximately $750,000. Approval of Resolution No. 2932 does not commit the Redevelopment Commission to acquiring the property at that amount. Upon approval by the Commission, resolutions will be put before the Area Plan Commission and Common Council for their approval, and then the Commission will hold a Public Hearing and consider a Confirming Resolution. Staff also requests approval to advertise for the Public Hearing after the Common Council approves its resolution. Staff believes it would be of public utility and benefit to amend the Development Plan by adding this property to the acquisition list and requests approval of Resolution No. 2932 and authorization to advertise the public hearing. Mr. Varner asked what the property taxes are for that lot. (Mr. Sikora researched and later in the meeting brought forth information that current taxes are $1,600 per year.) Mr. Downes asked if this site will be later marketed. Mr. Gibney responded that a site plan would be done. The staff s goal is to get $4,500,000 worth of residential real 12 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (7) continued... estate on this site. Mr. Varner asked if there was a timeline on the acquisition. Mr. Gibney reiterated that as this has to go to the Area Plan Commission, Common Council, and back to the Commission for a public hearing and final vote. Staff expects acquisition before the end of the year. Mr. Downes asked if there will be further environmental costs. Mr. Gibney responded that he did not know, pending the Phase II site assessment. Ms. King asked if a study would be done before the city makes an offer to which Mr. Gibney responded yes. Mr. Downes asked if the purchase would be subject to a sales agreement being in place prior to the purchase. He asked if it is legal to negiotiate an agreement simultaneously. Mr. Gibney responded that there is a developer who has expressed interest in it Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2932 Mr. Alford and unanimously carried, the AMENDING THE DEVELOPMENT PLAN FOR THE Commission approved Resolution No. 2932 SOUTH BEND CENTRAL DEVELOPMENT AREA AND ADDING AN INTEREST IN ONE OR MORE amending the Development Plan for the PARCELS TO THE LIST OF PARCELS TO BE South Bend Central Development Area and ACQUIRED(FORMER WHARF SITE)AS WELL AS adding an interest in one or more parcels to THE SETTING OF THE PUBLIC HEARING. the List of Parcels to be Acquired (former Wharf site) as well as the setting of the Public Hearing. 13 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) Resolution No. 2939 pledging certain tax increment revenues on a subordinate basis to the payment of certain City of South Bend, Indiana Economic Development Revenue Bonds expected to be issued for the South Bend Career Academy project. Mr. Inks noted that Resolution No. 2939 pledges the loan of a total of$1.5 million to be paid over 3 years to the South Bend Career Academy. The Academy will pay 4% interest on the loan. The total cost to acquire, renovate, equip and provide for first semester operating cash for the Academy totals $13.9 million. Construction financing has been provided by the Garatoni Family Foundation. End financing is expected to come from various bonds ($9.5 million, including the TIF Pledge), federal funding of$150,000, seller financing of$750,000 and private contributions totaling $3.5 million (including $1.0 million from the Garatoni Family Foundation). Mr. Inks noted that the South Bend Career Academy is a public, vocationally oriented charter school located in the Blackthorn Office Park. It opened in August for grades 7 thru 9 with a target enrollment of 125 students in each grade. Grades 10 thru 12 will be added successively over the next 3 years. As a public school it will be open without charge to any Indiana resident. Its operations will be funded by state tuition payments beginning in January of 2012. In addition to offering Indiana's "Core 40" academic program, the Career Academy will 14 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... emphasize project-based learning for all grades and will emphasize vocational education for the higher grades. The school will share equipment and instructors now used for the adult education programs of the Apprentice Academy. Courses will include precision metalworking, welding, plumbing, auto mechanics, appliance repair, heating and ventilating, advanced manufacturing, entrepreneurship, information technology, retail/business management, business ethics, nursing and phlebotomy. This school is housed in a formerly vacant 100,000 square foot facility and will provide another choice for quality education in South Bend. Mr. Hartz and Mr. Garatoni were present and available for questions. Ms. King asked under what circumstances the Commission decides to do a bond issue. Mr. Inks responded that the city has used it on a number of projects. The law allows payment through a bond issue but not payment directly to a school. There have been similar situations with public improvements where we have bonded to repay the city for improvements it made. We may not do this directly, but we can reimburse the city for public improvements. Ms. King asked if that is because it is a public school. She noted that in the case of Ivy Tech the Commission just utilized the 15 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... funds. Why a bond issue in this case? Mr. Inks responded that with Ivy Tech, the city was acquiring property which was then conveyed to Ivy Tech. In that case the property already existed, under ownership and the facility was already being constructed. One method to assist was to do a bond issue and under the TIF statutes, TIF money can be used to reimburse bonds of this nature. He noted that the Commission could consider this option for other types of facilities. Mr. Downes asked for explanation for the use of"A" bonds. Mr. Garatoni explained that"A" bonds are state authorized under a federal program and whoever utilizes these bonds receives a credit against their income taxes. The state allows $2 million for each project and locators for both the school's two projects, one in each year, allows the two "A" bonds. `B" bonds are based upon evaluation of the school and the cash flow to the school and the amount of money will be released to them. We are in negotiations with banks now for their sale. Mr. Downes asked if the whole project would need to be completed in order to apply for those. Mr. Metreiver responded no, it's not being done concurrently. Ms. King asked what happens if some of these sources are not granted. Mr. Metreiver responded that the Garatoni Family Foundation becomes a long-term owner. Ms. 16 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... King questioned whether the $13.9 million is working capital and the Commission funds would not go toward working capital. Mr. Metreiver responded that they would not. Ms. King asked about how the non-profit group's Articles of Incorporation define the kind of work that can be done. Mr. Garatoni responded that the Articles of Incorporation state that the organization is created to operate a charter school in compliance with state law. Also it's restricted to activities that can be undertaken consistent with its charitable status as a 501C(3) organization. Ms. King asked if it could be broader than education. Mr. Garatoni responded, no. He also said that under federal law it could be, but because the articles were created specifically for this one purpose, the articles say it's for the purpose of this charter school and nothing else. Mr. Downes asked Mr. Hartz to describe the current student body. Mr. Hartz responded that the school currently consists of 7th through 9th graders. They are mostly from the South Bend area; the 46628 and 46614 zip codes. There are children from out of the area, too. The school is open enrollment so it must take whoever comes through the door. The student body is diverse, but about the same as what is in the rest of the South Bend Community School Corporation (SBCSC). Being a career center, it's nearly 50/50 girls/boys. 17 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... Mr. Downes asked what percentage of the student body qualifies for free or reduced lunch or special education. Mr. Hartz responded that special education students compose about 20% and 70% or 80% of the students qualify for free and reduced lunch. Both of those numbers are consistent with the SBCSC. Ms. King asked if the testing results of the school's students will be published. Mr. Hartz responded that they would,just as in the rest of the SBCSC. Mr. Varner asked if the same standards/rules apply for this charter school as for SBCSC. Mr. Hartz responded yes, that it is a public school and will have to follow the rules identically. The only difference is that we both have to follow curriculum and this charter school will have to follow curriculum that meets its charter. Mr. Varner questioned transportation availability. Mr. Hartz explained that transportation is the biggest difference between the charter school and a normal public school. The charter school has no transportation funds. Transpo is helping the students with a couple special buses in the morning and afternoon. In other cases, parents are dropping the students off Mr. Varner said that he is concerned about more charter schools coming to the Commission for funding. 18 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2939 Mr. Varner and unanimously carried, the PLEDGING CERTAIN TAX INCREMENT REVENUES Commission approved Resolution No. 2939 ON A SUBORDINATE BASIS TO THE PAYMENT OF CERTAIN CITY OF SOUTH BEND,INDIANA pledging certain tax increment revenues on a ECONOMIC DEVELOPMENT REVENUE BONDS subordinate basis to the payment of certain EXPECTED TO BE ISSUED FOR THE SOUTH BEND City of South Bend, Indiana Economic CAREER ACADEMY PROJECT FOR A TOTAL OF Development Revenue Bonds expected to be $1.5 MILLION TO BE PAID OVER THREE YEARS. issued for the South Bend Career Academy project for a total of$1.5 million to be paid over three years. (2) 2"d Amendment to Listing Agreement with CB Richard Ellis for the Hotel LaSalle and the vacant lot at Colfax and Hill Streets. Mr. Relos noted the Commission currently has a Listing Agreement with CB Richard Ellis to market the LaSalle Hotel and the vacant lot at Colfax and Hill Streets. In this challenging real estate market, staff believes CBRE is doing a good job marketing these two properties. We would like to extend it to August 31, 2012. Upon a motion by Ms. King, seconded by COMMISSION APPROVED 21VD AMENDMENT TO Mr. Downes and unanimously carried, the LISTING AGREEMENT WITH CB RICHARD ELLIS Commission approved the 2nd Amendment to FOR HOTEL LASALLE AND THE VACANT LOT AT COLFAX AND HILL STREETS. Listing Agreement with CB Richard Ellis for the Hotel LaSalle and the vacant lot at Colfax and Hill Streets. (3) Staff report on final relocation costs for Sinco Pool. Mr. Relos noted that on November 2, 2010, the Commission authorized the acquisition of 19 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued... Sinco Pools and related relocation expenses for Sinco to move from East Sample Street to the corner of South Michigan and Dayton. At that time, the owner of Sinco did his best to estimate his relocation costs. Since that time, however, unexpected costs have accumulated. While going through the process of getting the needed permits for relocation, the Fire Department raised issues with the chemicals used by Sinco. Because the department could not explicitly tell Sinco what issues needed to be dealt with, Sinco had to hire an outside firm to sort through state and local regulations. In addition, Sinco had to install additional items not originally planned, including fire suppression and monitoring equipment. Those requirements cost Sinco an additional $6,884, which expenses were approved by the Commission on May 10, 2011. Since that time, Sinco has been working with the Fire Department to satisfy its concerns. As things progressed, the Fire Department identified additional items, thereby causing Sinco to incur more costs. Sinco now has an occupancy permit, but is requesting an additional $3,562.50 for three items; an additional $3,112.50 for two professional services, and $450 for additional computer services. Under the Commission's relocation policy, those costs are eligible relocation expenses. Staff believes Sinco put forth its best efforts in estimating the amount needed 20 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued... to relocate, and requests approval of this final, additional cost. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED AN ADDITIONAL Mr. Varner and unanimously carried, the $3,562.50 FOR ITEMS THAT COME UNDER Commission approved an additional RELOCATION REIMBURSEMENTS FOR SINCO POOLS. $3,562.50 for items that come under relocation reimbursements for Sinco Pools. (4) Resolution No. 2937 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Demolition of 622 and 718 East Sample Street). Mr. Sikora noted that on August 9, 2011 the Redevelopment Commission approved the purchase of 622 East Sample Street, one of the last pieces of property in an area proposed for expansion of the Southeast Neighborhood Park. The property was purchased on August 30, 2011. Both 622 and 718 East Sample Street are now owned by the Redevelopment Commission. The proposed project consists of demolishing a residence (622 East Sample) and storage building (718 East Sample), removal of foundation walls and non-city sidewalks, capping of utilities and clearing of trees, stumps, brush and assorted debris, and regrading and seeding of the land. That work will increase the safety of the surrounding area and begin to prepare the site for future development. 21 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (4) continued... The Department of Engineering prepared bid specifications. Bids were opened by the Board of Public Works on Monday, September 12, 2011. The lowest responsible bid came in at $23,000. Staff recommends approval of Resolution No. 2937 which will allow the Board of Public Works to award the bid at its September 26, 2011 meeting. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2937 Mr. Varner and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 2937 OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT FOR THE DEMOLITION OF 622 AND approving and authorizing the execution of 718 EAST SAMPLE STREET IN THE AMOUNT OF an Addendum to the Master Agency $23,000. Agreement for the demolition of 622 and 718 East Sample Street in the amount of$23,000. (5) Resolution No. 2938 authorizing the transfer of real property to the City of South Bend, Indiana. (921, 1007, and 1018 North Bendix). Mr. Sikora noted that Resolution No. 2938 transfers six tracts of three Redevelopment- owned properties to the Board of Public Works to support the development of the LaSalle Square senior housing project, Heritage Place at LaSalle Square. The transfers are as follows: 921 North Bendix, Tract I—Purchased from Faith Apostolic Temple, Inc.; to be transferred to Board of Public Works and then to the Sterling/Memorial Hospital of South Bend non-profit partnership and used for the senior housing project 22 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (5) continued... 921 North Bendix, Tract II—Purchased from Faith Apostolic Temple, Inc.; to be transferred to Board of Public Works as R/O/W for improvements and maintenance as a city street(Library Drive) 921 North Bendix, Tract III—Donated by Faith Apostolic Temple, Inc.; to be transferred to Board of Public Works as R/O/W for improvements and maintenance as a city street(Bonds Avenue extension) 1007 North Bendix, Tract IV—Purchased from Alex Salameh; to be transferred to Board of Public Works and then to the Sterling/Memorial Hospital of South Bend non-profit partnership and used for the senior housing project 1007 North Bendix, Tract V—Purchased from Alex Salameh; to be transferred to Board of Public Works as R/O/W for improvements and maintenance as a city street(Bonds Avenue extension) 1018 North Bendix, Tract VI— Owned by the Redevelopment Commission; a portion to be transferred to Board of Public Works and then to the Sterling/Memorial Hospital of South Bend non-profit partnership and used for the senior housing project Staff requests Commission approval of Resolution No. 2938. 23 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (5) continued... Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2938 Ms. King and unanimously carried, the AUTHORIZING THE TRANSFER OF REAL PROPERTY Commission approved Resolution No. 293 8 TO THE CITY OF SOUTH BEND,INDIANA,BOARD OF PUBLIC WORKS(921, 1007,AND 1018 NORTH authorizing the transfer of real property to the BENDIx). City of South Bend, Indiana, Board of Public Works (921, 1007, and 1018 North Bendix). (6) Resolution No. 2941 related to acquisition of property in the Airport Economic Development Area. (2611 Linden Avenue) Mr. Sikora noted that the Bosch site and two privately owned properties nearby are up for tax sale. Staff would like to put in bids for each of them on September 14, 2011. The price is $795.68, the amount of the back taxes due on the property. Based on the average of two appraisals the acquisition value is determined to be $34, 042.50. Staff asks for authorization of a not-to-exceed amount of$34,042.50 to bid on the two properties. Upon a motion by Ms. King, seconded by COMMISSION APPROVED RESOLUTION No.2941 Mr. Varner and unanimously carried, the AUTHORIZING STAFF TO ACQUIRE 2611 LINDEN Commission approved Resolution No. 2941 AVENUE AT TAX SALE FOR AN AMOUNT NOT TO authorizing staff to acquire 2611 Linden EXCEED$34,042.50. Avenue at tax sale for an amount not to exceed $34,042.50. D. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. 24 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) E. South Side Development Area There was no business in the South Side Development Area. F. Northeast Neighborhood Development Area (1) Request for funding to remove billboard on South Bend Avenue at Eddy Street. Mr. Relos noted that over the next several months, the City of South Bend will begin working with the NNRO, South Bend Heritage, and other groups to finalize a corridor master plan for the Eddy Street corridor from Colfax Avenue to the current "five points" intersection. The planning and preliminary design work has been done by an outside consulting group working with the neighborhood stakeholders and all work has been done in coordination with the State of Indiana's design and planning for a soon-to- be-reconstructed section of State Road 23/South Bend Avenue from Edison/Angela to south of the current"five points" intersection. The Commission's role in the future South Bend Avenue/Eddy Street project will be to use NNDA TIF Funds to implement the infrastructure development plan, including right-of-way acquisition, hiring an engineering firm to develop construction plans and to fund the construction work. One strategic use of these funds will be to provide targeted blight removal, or provide incentive grants for property upgrades along the corridor to help further reinforce and upgrade the aesthetic features of the corridor. 25 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) F. Northeast Neighborhood Development Area (5) continued... One early example of this is the request before the Commission today. As part of the state's design work on South Bend Avenue, the plans have created a modified alignment of the current roadway to provide a better connection of the network at the current"five points" intersection. To accomplish this plan, the state has been purchasing property along the corridor to push right-of-way north or south from the current alignment to meet all engineering standards. As a result of this new plan, one of the off-premise sign structures owned by Burkhart Advertising will be orphaned in a location with minimum exposure from the new roadway. It will be located at a point where bike trail connections and new development parcels could be assembled, but for the presence of the sign. The city has approached Burkhart about its potential interest in removal of this impacted sign and consideration for replacement with new signage along the corridor where the signs would meet development requirements. By relocating this sign, Burkhart would be able to recalculate spacing distances along the corridor. The proposed cost of sign removal and site clearance is $31,000. Staff believes it would be a very opportunistic use of funds to remove a billboard structure, allow for a better reprogramming and reuse of site area for the new development and to improve the aesthetics of the corridor. 26 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) F. Northeast Neighborhood Development Area (5) continued... Mr. Downes asked for clarification that it's Burkhart's sign, but they don't have to take it down or relocate it if they don't want to, but they would if the city pays for doing so. Mr. Relos said that was correct. Mr. Downes made a motion to approve the COMMISSION APPROVED THE REQUEST FOR request for funding to remove a billboard on FUNDING TO REMOVE BILLBOARD ON SOUTH South Bend Avenue at Eddy Street. Mr. BEND AVENUE AT EDDY STREET Alford seconded the motion. The motion passed on a vote of four in favor. Mr. Varner was opposed. G. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. H. Other (1) Proposal from Crowe Horwath for TIF Neutralization Calculations. Mr. Inks noted that the TIF Neutralization Worksheets include collecting the necessary data, preparing the worksheets for each TIF area and filing the worksheets with the Auditor's office. The total cost is not to exceed $15,000 for professional fees. In addition, staff is requesting a not-to-exceed amount of$2,500 for incidental costs related to communication, printing, travel expenses and other similar expenses. The total of $17,500 is the same as last year. Mr. Inks noted that these calculations are 27 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) H. Other (1) continued... necessary every year in which there is a reassessment of all properties. Historically, these calculations were only required once every ten years when a general reassessment was done. However, now these calculations are needed every year, since every year all property values are adjusted for market trending. This calculation adjusts the base assessed value for each TIF area to "neutralize" the effect of the reassessment. To achieve this neutralization, the base assessed values are adjusted to reflect growth in the County vs. the TIF area, and to achieve the amount of tax revenue collected in prior year plus tax revenue due to new"real growth" and tax abatement roll offs. Staff recommends favorable consideration. Ms. King asked if the city ever bid this work out. Mr. Inks replied that the city has not. Ms. King asked if there was any other firm that performs those calculations. Mr. Inks responded that the city has used Umbaugh& Associates before, and believes they could do them. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED THE PROPOSAL FROM Mr. Downes and unanimously carried, the CROWE HORWATH FOR TIF NEUTRALIZATION Commission approved the Proposal from CALCULATIONS. Crowe Horwath for TIF Neutralization Calculations. 28 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 6. NEW BUSINESS (CONT.) Use/Agency Lot Event Dates of Use Naptown Riders MC Former Schillings Storage of September 13 — Building at miscellaneous property December 13, 2011 Upon a motion by Mr. Downes, seconded by Ms. King COMMISSION RATIFIED THE TEMPORARY USE and unanimously carried, the Commission ratified the AGREEMENTS APPROVED BY STAFF SINCE Temporary Use Agreements approved by staff since AUGUST 23,2011 August 23, 2011. 7. PROGRESS REPORTS Mr. Inks noted concerning the Bosch property, the staff PROGRESS REPORTS continues to take businesses and members of the community through the facility so they become familiar with the site. The site has been appraised but we haven't gotten the appraisals back yet. They are expected next week. It was appraised as a whole site and a split site because there are two significant buildings. As the site is being shown, some parties are interested in the main building, but not necessarily the second office building. Staff needs to do some assessment on how to split that site as we prepare to market it. Staff would like to proceed with this as soon as possible. Staff requests a not-to-exceed amount of $5,000 to hire a local firm to determine how we might split the site. Mr. Downes asked what the square footage was for each building. Mr. Inks responded there are 270,000 sq. ft. in the large building and 100,000 sq. ft. in the office building. The larger building has three stories of office in the front but is mainly a warehouse on the back side. Mr. Downes asked on the scale of one to ten what the interest has been so far. Mr. Inks responded, four to five. Ms. King asked what condition the buildings were in to which Mr. Inks replied they are excellent and were well maintained by Bosch. 29 South Bend Redevelopment Commission Regular Meeting—September 13, 2011 7. PROGRESS REPORTS (CONT.) Upon a motion by Mr. Downes, seconded by Mr. Varner COMMISSION APPROVED THE NOT-TO-EXCEED and unanimously carried, the Commission approved the AMOUNT OF$5,000 TO HIRE FOR SITE not-to-exceed amount of$5,000 to hire for site RECOMMENDATIONS. recommendations. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Tuesday, September 27, 2011 at 4:00 p.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Ms. King made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 5:00 p.m. ,. 30