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HomeMy WebLinkAbout09-27-11 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING September 27, 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 Mr. Greg Downes Mr. Donald Alford Members Absent: Ms. Nancy King, Secretary Ms. Stephanie Spivey Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. David Relos, Economic Development Planner Mr. Matthew Sikora, Economic Development Planner Mr. Jitin Kain, Senior CED Specialist Ms. Ann Kolata, Senior Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mr. Tom Price, Mayor's Office Mr. Jeffrey Gibney, Executive Director Ms. Rita Kopala Ms. Mo Miller Mr. Rick Doolittle, Grubb & Ellis, Cressy & Everett Mr. Bill Lamie, ADG Mr. Jim Bognar Ms. Amber Zebell, Prism Science Ms. Patti Lesniewicz, Economic Development Mr. Kevin Allen, South Bend Tribune Mr. Charlie Thompson, St. Vincent DePaul Mr. John Eddyfield, St. Vincent DePaul Mr. E. D. Feasel 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Tuesday, September 13, 2011. South Bend Redevelopment Commission Regular Meeting—September 27, 2011 2. APPROVAL OF MINUTES (CONT.) A. continued... Upon a motion by Mr. Downes, seconded by Mr. COMMISSION APPROVED THE MINUTES OF THE Varner and unanimously carried, the Commission REGULAR MEETING OF TUESDAY, approved the Minutes of the Regular Meeting of SEPTEMBER 13,2011 Tuesday, September 13, 2011. 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted September 27, 2011 for approval. 324 AIRPORT AEDA Wausau Title, Inc 5,418.00 Pavers Jefferson&Main Meridian Title Corporation 50,557.62 1520-1526 S Chapman St. Closing Hathaway 2, Inc. 5,868.26 Professional Service for Ignition Park Sinco Pools 1,650.00 Relocation Costs Architecture Design Group 1,912.50 Sinco Pools St. Joseph County Treasurer 2,835.84 Acquisition Tax Sale Properties Radiant Networks 20,713.62 On-Site Mesh Survey DHA 4,028.00 Lots 4 2 & 3 in Ignition Park Meridian Title Corporation 200.00 1521-1523 S Kemble Ave Grauvogel &Associates 220.00 Research for Insurance Recovery Lawsuit Plews Shadley Racher&Braun LLP 196.63 Studebaker Cost Recovery Plews Shadley Racher&Braun LLP 17.82 Cost Recovery Plews Shadley Racher&Braun LLP 223.9 Oliver Plow Works Cost Recovery Meridian Title Corporation 150.00 812 Oliver Plow Ct Jerome E. Michaels, MAI 1,800.00 109-111 N Taylor St. Ancon Construction, Inc 47,422.03 Memorial Hospital Streetscape Improvements Hull &Associates, Inc 4,744.86 Lot 4 Studebaker NSRR BSA Life Structures 1,200.00 Master Planning for Ignition Pk Hull &Associates, Inc 2,188.75 Oliver Industrial Park area C C&E Excavating 287,531.79 Ziolkowski Construction Demolition David Waszak Appraisals, Inc. 2,900.00 24762 US 20 West Michiana Contracting Inc. 22,277.25 Nimtz Parkway conduit Installation R.E Pitts &Associates, Inc. (Service Commercial/Storage buildings) 24762 2,550.00 U.S 20 West Weaver Boos Consultants LLC 4,002.25 Studebaker Area A Demolition-Phase IV Indiana Michigan Power 7.00 501 Wenger St. Heppenheimer&Korpal 1,060.40 Tax Sale Legal Services BSA Life Structures 32,000.00 Ignition Park Ph IA Infrastructure Design 2 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 3. APPROVAL OF CLAIMS (CONT.) 324 AIRPORT AEDA continued... RE Pitts &Associates, Inc. 6,450.00 Bosch Braking systems Corporation David Waszak Appraisals, Inc. 8,700.00 401 N. Bendix South Bend Legal Dept 25,200.00 Legal Services ADEA TIF Innovation Park at Notre Dame 498.33 Office Space Geri Hathaway Meridian Title Corporation 812 Oliver Plow Ct Raitt Corp Closing 420 FUND TIF DISTRICT-SBCDA GENERAL Indiana Michigan Power 8.01 755 S Michigan St. Ampco System Parking 2,220.50 St. Joseph/225 Main St Morris Performing Arts Center Entry Door& James Childs Architects 45,749.57 Window Replacement Lowe's Commercial Services 17.07 LaSalle Hotel Knob Set CB Richard Ellis LaSalle Hotel Management Fee &General 741.17 Maintenance ESL-Spectrum Inc 12,199.00 First Bank Streetscape Fixtures with Lamps DHA ALTA Surveys for 12 Comm. Properties in 4,280.00 Monroe Park DHA Preparation of Special Exception&Variance 4,600.00 Petition on LWE,Rush St., South St. South Bend Legal Dept Services Rendered 1st&2nd Quarterly Pym's 8,400.00 SBCDA TIF Premium Concrete Services, Inc. 32,963.26 621 East Jefferson Blvd Streetscape Wightman Petrie 28,135.00 Coveleski Stadium 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT The Troyer Group 3,741.00 Facade Studies for Memorial Hospital 429 FUND NORTHEAST DISTRICT Farrington Appraisals, Inc. 3,500.00 717 E. LaSalle 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA 41 Lawson-Fisher Associates, PC 48,185.61 S Main To Lafayette Survey $ 739,265.04 Upon a motion by Mr. Downes, seconded by Mr. Alford COMMISSION APPROVED THE CLAIMS and unanimously carried, the Commission approved the SUBMITTED SEPTEMBER 27,2011,AND ORDERED Claims submitted September 27, 2011, and ordered THE CHECKS TO BE RELEASED checks to be released. 3 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 4. COMMUNICATIONS There were no Communications. THERE WERE NO COMMUNICATIONS 5. OLD BUSINESS There was no Old Business. THERE WAS NO OLD BUSINESS 6. NEW BUSINESS A. Housing (1) Loan and Grant in connection with the South Bend Home Improvement Program for property located at 3135 Wilder Drive (Kathleen Desits Rand). Mr. Inks noted that the loan is in the amount of$6,100; the grant is $5,923.50. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE LOAN AND GRANT Mr. Alford and unanimously carried, the IN CONNECTION WITH THE SOUTH BEND HOME Commission approved the Loan and Grant in IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 3135 WILDER DRIVE(KATHLEEN connection with the South Bend Home DESITs RAND). Improvement Program for property located at 3135 Wilder Drive (Kathleen Desits Rand). (2) Loan and Grant in connection with the South Bend Home Improvement Program for property located at 2916 Erskine Blvd. (Patricia A. Simpkins). Mr. Inks noted that the loan is in the amount of$2,450; the grant is $17,000. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE LOAN AND GRANT Mr. Alford and unanimously carried, the IN CONNECTION WITH THE SOUTH BEND HOME Commission approved the Loan and Grant in IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 2916 ERSKINE BLVD.(PATRICIA A. connection with the South Bend Home SIMPKINS). Improvement Program for property located at 2916 Erskine Blvd. (Patricia A. Simpkins). 4 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) Ratification of Contract for purchase of HVAC unit for the Wayne Street Retail storefront (117 E. WayneNesuvio's Pizza). Ms. Jennings noted that shortly after Vesuvio's Pizza moved into 117 E. Wayne St., the HVAC unit in the kitchen became inoperable. Inspection was done and the decision was made to replace the HVAC unit. In compliance with the city's purchasing requirements, three quotes were obtained. The lowest quote was from Ideal Consolidated, Inc. in the amount of$13,250. The city has already given Ideal Consolidated permission for them to proceed with the repair under the theory that as the landlord, we have a tenant who has certain expectation for space and we need to respond promptly to make sure that the space is useful to them. Staff seeks ratification today. Mr. Downes asked if the city sets money aside each year in a sinking fund to replace items such as these. Mr. Inks replied that it does. However, there have been an unusually large number of repairs to our properties this year and there is no money left in that fund. Staff will be presenting a revised budget for the Commission's retail space at a future meeting. Upon a motion by Mr. Downes, seconded by COMMISSION RATIFIED THE CONTRACT WITH Mr. Alford and unanimously carried, the IDEAL CONSOLIDATED INC.FOR PURCHASE OF AN Commission ratified the contract with Ideal HVAC UNIT FOR THE WAYNE STREET RETAIL STOREFRONT IN THE AMOUNT OF$13,250.(117 Consolidated Inc. for purchase of an HVAC E.WAYNENESUViO'S PIZZA) unit for the Wayne Street Retail storefront in 5 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... the amount of$13,250. (117 E. Wayne/Vesuvio's Pizza) (2) Proposal for design work for Century Center southern and western entries. Mr. Relos noted that in an effort to further enhance the beauty and character of Century Center, the southern entry where patrons enter from the parking lot, and the western main entrance off St. Joseph St. are in need of improvements. Architectural Design Group (ADG) has been very involved with design and construction oversight of many of Century Center's recent improvements, and is familiar with this city asset. This proposal is for design work to arrive at a cost estimate for the south entry improvements. Improvements under consideration for this entry point are: a new parking attendant booth and its concrete island; pedestrian safety dividers; limited vehicle entry points into and out of the parking lot for vehicular and pedestrian safety; new planters, landscaping, lighting, curbs, and entry walkway pavement. The total cost for design of this entry point is $7,000. The proposal for the west entry is for design, construction documentation, and assistance with the bidding and construction phases. Improvements under consideration for this entry point are: removal and installation of new entry doors; entry walkway pavement; 6 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... lighting; and patch and paint the existing columns and canopy. The fee for design of the west entry improvements is $16,000. Once design features and construction estimates are completed, it is expected project funding will be presented to the Commission for consideration. Funding for this project will be supplemented with $150,000 the Hotel-Motel Tax Board has approved for 2012 for the west entry point improvements. Staff requests approval of these proposals from ADG, in a not-to-exceed amount of $23,000 ($7,000 for the south entry point, and $16,000 for the west entry point). Mr. Downes asked what the construction cost is estimated to be for the project. Mr. Relos replied that the west entry point is estimated at $200,000 of which $150,000 will be supplemented with the Hotel-Motel Tax Board. Mr. Lamie noted that estimates had been done for replacements of the doors. The same contractor who replaced the south entry doors provided a quote for the west, at a little over $200,000. Mr. Downes asked about the total amount. Mr. Lamie said that an initial analysis was done of the problem areas months ago as the Building and Grounds Committee was putting together its capital plan. Mr. Relos added that the south entry design 7 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... proposal is intended to get us to a point where we can better understand the total cost and to see how it fits into the downtown budget. We may need to do part this year and completion the next year. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE PROPOSAL FOR Mr. Varner and unanimously carried, the DESIGN WORK FOR CENTURY CENTER SOUTHERN Commission approved the proposal for AND WESTERN ENTRIES design work for Century Center southern and western entries. (3) Authorization requested to pursue expansion of the South Bend Central Development Area to include a portion of the Northside Boulevard Transpo maintenance site. Mr. Kain noted that Transpo recently vacated its old facility on Northside Blvd. and moved into its new LEED Platinum building just west of downtown. The former Transpo site is roughly ten acres in size and offers a unique opportunity for redevelopment in such close proximity to downtown. The Howard park Neighborhood Master Plan (or East Bank Village—Phase II) proposes new single and multi-family development on the Transpo site. That plan was created with feedback from community stakeholders, including East Bank Village businesses and residents. Of the ten acre Transpo site, 5.5 acres lie within the South Bend Central Development Area (SBCDA) while 4.33 acres lie outside 8 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) continued... of the SBCDA. Additionally, there are a few industrial uses adjacent to the Transpo site that are not compatible with the residential development planned for the site. Addition of the 4.33 acre Transpo site and the few adjacent parcels to the SBCDA will facilitate infrastructure improvements and pave the way for new residential development, which will have a positive impact on the entire city. The proposed residential development in the area will help create additional construction jobs in the community which will support the city's economic development efforts. Staff asks Commission approval to proceed with the expansion of the area as outlined. A declaratory resolution to formally begin the expansion process as well as a resolution to add the Transpo site to the acquisition list will be presented to the Commissioners at an upcoming meeting. Mr. Downes asked what the process was from this point forward. Mr. Kain stated that at an upcoming meeting, staff will bring a declaratory resolution to begin the process of expanding the area. After the declaratory resolution is approved by the Commission it is taken to the Area Plan Commission, the Common Council and then back to the Redevelopment Commission. Upon a motion by Mr. Downes, seconded by COMMISSION AUTHORIZED STAFF TO PURSUE Mr. Varner and unanimously carried, the EXPANSION OF THE SOUTH BEND CENTRAL Commission authorized staff to pursue DEVELOPMENT AREA TO INCLUDE A PORTION OF THE NORTHSIDE BOULEVARD TRANSPO expansion of the South Bend Central MAINTENANCE SITE. 9 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) continued... Development Area to include a portion of the Northside Boulevard Transpo maintenance site. (4) Proposal for architectural planning services related to redevelopment owned parcels on Niles and Colfax Avenues. Mr. Kain noted there are two key sites in the East Bank Village which lie in the South Bend Central Development Area (SBCDA) which has seen significant development activity over recent months—the former Rink building site now home to the East Bank Village Townhomes, and the former Troeger site on Niles Ave. will soon see additional residential development. Staff would like to engage the services of Kil Architecture & Planning to study the marketability of two Commission-owned sites along Niles and Colfax Ave. for potential future development. The study will investigate maximum building square footage for the sites and develop schematic building designs. This information will be valuable to staff while engaging in discussions with private developers and interested parties about the highest and best use of these development parcels. Staff asks for approval of the proposal at a cost not to exceed $4,000. Mr. Downes asked what the East Bank Village Plan called for on the sites. Mr. Kain 10 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued... replied that on both sites the plan called for office type use and on the Colfax site a mix of retail and residential. Upon a motion by Mr. Downes, seconded by COMMISSION ACCEPTED THE PROPOSAL FROM Mr. Varner and unanimously carried, the KIL ARCHITECTURE&PLANNING FOR Commission accepted the proposal from Kil ARCHITECTURAL PLANNING SERVICES RELATED TO REDEVELOPMENT OWNED PARCELS ON NILES Architecture & Planning for architectural AND COLFAx AVENUES. planning services related to redevelopment owned parcels on Niles and Colfax Avenues. (5) Listing Contracts with Hallmark Real Estate for five Commission owned properties in Monroe Park. Mr. Sikora noted that staff is asking for consideration and approval of four listing contracts with Bruce Gordon of Hallmark Real Estate for the sale of Redevelopment- owned properties in the Monroe Park Neighborhood. There were to be five contracts, but one of the properties is expected to be sold directly by staff On June 28, 2011 the Redevelopment approved the bid specs, fair-market valuation, and advertising to begin the disposition process for each of the five properties. There were no bids received at the July 26, 2011 Redevelopment Commission meeting. Thirty days have now passed which allows the properties to be sold at a negotiated price, less than the fair-market valuation. The listing agreements are the city's standard 11 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (5) continued... agreement. They provide a commission for each property sold: the higher of$2000 per property or 7% of the negotiated sale price. Should Mr. Gordon sell to one of his clients directly, the $2000 decreases to $1500. The properties to be listed with Hallmark Real Estate are 609 Columbia, 628 Rush, 310 E. South, 602 Carroll and 620 Columbia. Some of the properties do have tenants, who are all renting month-to-month and have been made aware of the possibility of a sale. Staff requests approval of the four listing contracts. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE LISTING Mr. Alford and unanimously carried, the CONTRACTS WITH HALLMARK REAL ESTATE Commission approved the Listing Contracts FOR FOUR COMMISSION OWNED PROPERTIES IN MONROE PARK with Hallmark Real Estate for four Commission owned properties in Monroe Park. (6) Resolution No. 2919 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Michiana Lock& Key Demolition Project). Mr. Relos noted that Resolution No. 2919 and the Addendum to Master Agency Agreement are for the demolition of the former Michiana Lock& Key. At the May 10 Redevelopment Commission meeting, the Commission approved a contract with Wightman Petrie to prepare a demolition and 12 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (6) continued... site reuse plan for the former Michiana Lock & Key property located at the southwest corner of Lafayette and Monroe. The reuse plan for the site will include the construction of a through parking lot area that will connect Monroe to the existing Cove parking lot south of the site and will include sidewalk improvements and landscaping for the site. The proposed budget for the site improvements is $156,763 with contingency included. The project will soon go out to bid with an October 10 bid opening by the Board of Public Works. Staff requests approval of Resolution No. 2919. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2919 Mr. Downes and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 2919 OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT(MICHIANA LOCK&KEY approving and authorizing the execution of DEMOLITION PROJECT) an Addendum to the Master Agency Agreement (Michiana Lock& Key Demolition Project). (7) Staff report on Owners Authorization for Preparation of Nomination Report to the National Register of Historic Places (Sons of Israel Synagogue, 420 S. William). Mr. Relos noted that this is an application to nominate the Sons of Israel Synagogue, located at 420 S. William Street and owned by the Redevelopment Commission since 2008, for the National Register of Historic 13 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (7) continued... Places. With Commission approval of this form, a consultant will be hired by the local Historic Preservation Commission which will pay for the consultant to do his work. The consultant will compile and file the necessary paperwork for submittal to the Department of Natural Resources or the Parks Department. Designation to the National Register of Historic Places will qualify the Synagogue for historic tax credits and federal grants when the rehabilitation occurs, but will not prevent the City from moving the property or from doing any rehab that we want to do. Indiana Landmarks will have easements on the facade that are more restrictive than anything else that would be placed on it. Staff request approval and signing of the form, as the property's owner. Mr. Downes confirmed that designation to the National Register of Historic Places would not prevent the city's moving the building, nor would it restrict the types of improvements the city could make to the building. Mr. Relos responded that Indiana Landmarks confirmed that. Mr. Arnold asked if the Synagogue was moved, would it have to be moved to an historical site. Mr. Relos responded that the only requirement would be that the site be adequate for the building. Mr. Relos noted that both Indiana Landmarks and Historic Preservation are aware of the city's possible interest in relocating the Synagogue. They 14 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (7) continued... would do nothing to hinder the city from doing that. Upon a motion by Mr. Downes, seconded by COMMISSION AUTHORIZED SIGNING THE Mr. Varner and unanimously carried, the OWNERS AUTHORIZATION FOR PREPARATION OF Commission authorized signing the Owners NOMINATION REPORT TO THE NATIONAL REGISTER OF HISTORIC PLACES(SONS OF Authorization for Preparation of Nomination ISRAEL SYNAGOGUE,420 S.WILLIAM) Report to the National Register of Historic Places (Sons of Israel Synagogue, 420 S. William). C. Airport Economic Development Area (1) Environmental Agreement Regarding Real Estate with Data Realty. Ms. Kolata noted that the Commission previously approved a Contract for Purchase and Sale of Real Estate with Data Realty Northern Indiana to sell Lot 4 in Ignition Park. Pursuant to the terms of the Contract, the Commission provided environmental information to Data Realty concerning environmental conditions on the property. After analysis of that information, Data Realty requested an Environmental Agreement with the Commission to cover the current environmental conditions and provide an environmental indemnification to Data Realty. This agreement is the result of discussions between Data Realty and the Commission's attorneys and addressees these issues. She noted that staff has expected this request. It is not a surprise. 15 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... Upon a motion by Mr. Downes, seconded by COMMISSION APPROVEDTHE ENVIRONMENTAL Mr. Alford and unanimously carried, the AGREEMENT REGARDING REAL ESTATE WITH Commission approved the Environmental DATA REALTY. Agreement Regarding Real Estate with Data Realty. (2) Option Extension Agreement with CE Capital for Blackthorn Corporate Office Park. Mr. Inks noted that the Option Extension Agreement would extend the expiration date of the Option Contract with CE Capital by three years to August 27, 2015. Under the original Option Contract entered into August 27, 2007, CE Capital Group, LLC acquired an option for all the Commission owned property for sale in the Blackthorn Corporate Office Park. The option fee to be paid by CE Capital was $100,000. Since entering into this Option Contract, South Bend and the rest of the country have experienced a severe recession and turmoil in the real estate markets, both residential and commercial. Very little new private business development has occurred in South Bend or St. Joseph County over the last three years. We continue to believe CE Capital can successfully market this property in an improved economic climate and recommend the three year option extension. Mr. Doolittle provided a brief review of what has transpired over the last six years in the office/real estate market. The negative side 16 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) continued... is that the value of available properties has declined as much as 40%, rental rates have reduced 40%, with costs to build increasing. The positive side of the equation is that there appears to be light at the end of the tunnel. CE Capital Group, LLC is working with two prospects for the Blackthorn area. In 2008, Blackthorn had a 35% vacancy in office space. Today it is at 4%. CE Capital would like more time, in light of these uncontrollable events, to achieve a better result. CE Capital is contemplating putting together a program where it will pay for the architectural design work for any business that wants to locate, in the Blackthorn Corporate Park, up to a limit; and, for a period of time, CE Capital may reduce price points by 20%. Mr. Downes asked whether under the existing agreement that expires August 27, 2012, which would require CE Capital to acquire 25% of the Blackthorn Corporate Park acreage, the Commission would have the option to cancel the agreement. Mr. Doolittle responded that CE Capital is being preemptive to ask for this three year extension on the initial term and, hopefully, won't have to have this discussion again. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED YHE OPTION Mr. Alford and unanimously carried, the EXTENSION AGREEMENT WITH CE CAPITAL FOR Commission approved the Option Extension BLACKTHORN CORPORATE OFFICE PARK. Agreement with CE Capital for Blackthorn Corporate Office Park. 17 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) Resolution No. 2859 adopting a Declaration of Covenants and Easements for Ignition Park. Mr. Inks requested that this item be tabled until further notice. Upon a motion by Mr. Varner, seconded by COMMISSION TABLED RESOLUTION No.2859 Mr. Downes and unanimously carried, the Commission tabled Resolution No. 2859 (4) Resolution No. 2918 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Regional Fire Training Center Project). Mr. Sikora noted that the Regional Fire Training Center is a multi-disciplinary public safety project that has been in development for the past 10 years by the City of South Bend and in coordination with other local public safety agencies. The proposed facility will be located adjacent to the existing crash- fire-rescue airplane fuselage training area on the western end of the South Bend Regional Airport on land owned by the St. Joseph County Airport Authority. The center part of the training center project will be a five story tower with four distinct facade types (residential, commercial, industrial, and apartment)that will be used to train on exterior and interior fire fighting. The purpose of this Addendum is to provide predevelopment funds for the project to move it forward this calendar year. The Addendum has four sub-projects which relate to specific vendor contracts (Projects 1-3) for 18 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (4) continued... site, infrastructure and facility design. The total estimate of all work in this predevelopment phase is $206,900. Those funds will be loaned to the project from the Airport TIF and all but $15,000 will be reimbursed to the TIF once the project goes to scale the funding flows in from state and federal sources. Mr. Meteiver is making sure this is done in legal fashion. The proposal consists of three pieces of design work: site layout at $132,200, though the budgeted amount being asked for here is only $119,000 because $13,200 is being paid for from other sources); facility design at $81,000 (budgeted amount of$72,900) and infrastructure design at $15,000, none of which has been paid and is not reimbursable. Mr. Downes asked if the Commission can be assured of reimbursement. Mr. Inks responded that the agreement is verbal at this point. The understanding is when the project is financed these costs would be included in the financing. Mr. Varner noted that as of last evening at the Common Council meeting, it wasn't certain the Council will support the financing. The project's been included with construction of new Fire Stations 5 and 9. Commission consideration of this might be premature at this time. Mr. Gibney stated that there is no 19 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (4) continued... commitment. Baker Daniels in Washington, DC, has been working with staff to find funds for the project. Mr. Downes expressed his concern over the lack of the commitment to reimburse. Is it necessary for the Commission to expend the money before we have a firm commitment to be reimbursed? He would like approval to be subject to getting a firm commitment on the reimbursement. Mr. Inks responded that the Commission doesn't have to spend the money before knowing. He said in his mind if there is consensus between the Administration and the Council that the financing can proceed, then the Commission can provide TIF funds understanding that they would not get reimbursed until the financing was in place, perhaps a month or two. Consensus, a promise, from those two sources would be a sufficient commitment. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2918 Mr. Arnold and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 2918 OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT(REGIONAL FIRE TRAINING subject to final approval of a financing CENTER PROJECT)IN THE AMOUNT$206,900 package which includes reimbursement to the SUBJECT TO FINAL APPROVAL OF FINANCING Commission for $191,900. PACKAGE WHICH INCLUDES REIMBURSEMENT TO THE COMMISSION FOR$191,900. (5) Resolution No. 2940 related to acquisition of property in the Airport Economic Development Area (1512 Kemble). Mr. Relos noted that 1512 S Kemble was 20 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (5) continued... added to the Airport Economic Development Area's Acquisition List by Resolution No. 2668 on May 21, 2010 in an effort to clean and clear the southern boundary of Ignition Park, and to help stabilize the Rum Village neighborhood to the south. This particular property is a two story, four bedroom, 1,280 square foot single family residence. The property owner contacted staff to express interest in selling this property. Resolution No. 2940 sets the acquisition value of the property at $12,250, the average of two independent appraisals. Staff requests approval of Resolution No. 2940. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2940 Mr. Varner and unanimously carried, the RELATED TO ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 2940 AIRPORT ECONOMIC DEVELOPMENT AREA related to acquisition of property in the (1512 KEMBLE). Airport Economic Development Area (1512 Kemble). (6) Resolution No. 2942 related to acquisition of property in the Airport Economic Development Area (1511 S. Kemble). Mr. Relos noted that 1511 S Kemble was added to the Airport Economic Development Area's Acquisition List by Resolution No. 2668 on May 21, 2010. This property is a two story, three bedroom, 1,428 square foot single family residence. It has a one car garage, central air, fenced back 21 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (6) continued... yard, with enclosed front and rear porches. The property owner would like to participate in the goals of the Commission to clean and clear this area, and contacted staff of their interest in selling this property. Resolution No. 2942 sets the acquisition value of the property at $24,250, the average of two independent appraisals. Staff requests approval of Resolution No. 2942, to allow for the acquisition of this property. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2942 Mr. Varner and unanimously carried, the RELATED TO ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 2942 AIRPORT ECONOMIC DEVELOPMENT AREA related to acquisition of property in the (1511 S.KEMBLE). Airport Economic Development Area (1511 S. Kemble). (7) Administrative Settlement for 1511 S. Kemble. Mr. Relos noted that the mortgage for 1511 S. Kemble is under water by $17,500. The owner has submitted a counter offer in the amount of$41,750 to allow him to pay off the mortgage completely. The Relocation Act allows the payment of an Administrative Settlement in such cases. Staff feels the total approximate acquisition cost of$41,750 is reasonable for this property, in light of its size, condition, and amenities, and requests approval of the administrative settlement. 22 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (7) continued... Mr. Varner asked how many properties the city is still looking to acquire in that area. Mr. Relos responded that the Commission has acquired three quarters of the 150 parcels; there are approximately 20 residential properties and 4 to 5 businesses remaining on the acquisition list. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED ADMINISTRATIVE Mr. Varner and unanimously carried, the SETTLEMENT FOR 1511 S.KEMBLE IN THE Commission approved Administrative AMOUNT OF$17,500. Settlement for 1511 S. Kemble in the amount of$17,500. (8) Proposal for professional services for relocation services for Prairie Salvage Company. Mr. Relos noted that since April of this year, staff has been working with Prairie Salvage to find a suitable location within the city limits. Because of the type of business, Prairie Salvage needs a building with a lot of open space and little to no office space, approximately 7,500 square feet, and all on one story at ground level. Two different real estate agents looked for buildings meeting this standard, and found none. All available listings are either too big or small, not at grade level, or are mainly office space. After a brainstorming session, staff discovered two buildings not currently listed that could be possibilities. One, the old Color Tile building on Lincoln Way East (LWE), would have an acquisition and 23 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (8) continued... rehabilitation cost of over $380,000, with business moving costs taking this total to approximately $420,000. The second building is also on LWE. Acquisition cost of this building would be $150,000. To enable staff and Prairie Salvage to understand the condition of the building, and what costs may be associated with necessary improvements, the building needs to be inspected and, based on those inspections, cost estimates estimated. In addition, the Building and Fire Departments will need to inspect the building and their recommendations incorporated into any rehabilitation plan. Since ADG has helped in two prior Commission relocations, they were asked to provide a proposal. Staff requests acceptance of this proposal in an amount not to exceed $7,200. Mr. Varner asked for clarification as to whether the second building was north of the Color Tile building. Mr. Relos responded it is northwest. It is the old ConAir building. Mr. Varner also asked if the driving force behind the desire to acquire Prairie Salvage was to create an ascetic buffer on this edge of Ignition Park. Mr. Relos responded that it is. Mr. Varner expressed his opinion that he doesn't believe the acquisition and relocation of Ignition Park is needed as this time; however, he is willing to authorize this 24 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (8) continued... proposal to see what the cost would be. Upon a motion by Mr. Downes, seconded by COMMISSION ACCEPTED THE PROPOSAL FROM Mr. Arnold and unanimously carried, the ADG FOR PROFESSIONAL SERVICES RELATED TO Commission accepted the proposal from THE RELOCATION OF PRAIRIE SALVAGE COMPANY ADG for professional services related to the relocation of Prairie Salvage Company. (9) Proposal for professional services for tax sale acquisition legal services. Mr. Relos noted that on September 14, 2011, the Treasurer's office conducted a sale of delinquent tax properties. The Commission authorized staff to bid on three parcels, all of which were purchased for the minimum bid, totaling $2,835.84. Now that these parcels have been acquired, notifications must be mailed and published, and certain paperwork filed. These items have various deadlines and required language. Mr. Heppenheimer, who knows the process necessary to acquire a tax deed, has provided staff a proposal to do the work necessary to ultimately gain tax deeds for these properties. Mr. Heppenheimer's proposal price, including title work, is $625 each, for a total of$1,875. Because additional certified mailing fees could be necessary for the notification process, staff requests a not-to-exceed amount of$2,000. Staff requests approval of the proposal. Ms. Jones inquired whether the Commission couldn't use the ratification process in the 25 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (9) continued... future for this service. Mr. Relos responded that it could. Mr. Varner asked if these services will provide the Commission with clear title to these properties. Mr. Relos responded that the last two sales that the Commission purchased from were the County Commissioners sale after which the owner has 60 days to redeem the property. This sale is different, in that the owner has one year to redeem them. If they do redeem, they will have to pay the Commission $500 each for legal fees. Upon a motion by Mr. Downes, seconded by COMMISSION ACCEPTED THE PROPOSAL FROM Mr. Arnold and unanimously carried, the HEPPENHEIMER&KORPAL FOR THE SCOPE OF Commission accepted the proposal from SERVICES IN AN AMOUNT NOT TO EXCEED$2,000 Heppenheimer & Korpal for the scope of services in an amount not to exceed $2,000. (10) Resolution No. 2943 approving and authorizing the execution of an Addendum to the Master Agency Agreement (EMI Demolition Project). Mr. Relos noted that Resolution No. 2943 authorizes of a professional service agreement to update the bid documents developed last year for the demolition inspection services for demolition of the former EMI building. Demolition was bid out in September 2010, but there were two nearby businesses that expressed interest in buying the building. Neither of those came to fruition. So we would again like to bid out 26 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (10) continued... the demolition and need the bid specifications updated. The fee for updating the specifications and performing oversight of the demolition is $17, 680. Demolition and site improvements are expected to cost $225,000. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2943 Mr. Varner and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 2943 OF AN ADDENDUM TO THE MASTER AGENCY approving and authorizing the execution of AGREEMENT(EMI DEMOLITION PROJECT . an Addendum to the Master Agency Agreement (EMI Demolition Project). D. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. E. South Side Development Area There was no business in the South Side Development Area. F. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. G. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. 27 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) H. Other (1) Crowe Horwath Project Assignment for bond refunding (2003 AEDA TIF bond and 2003 SBCDA TIF bond). Mr. Inks noted that the Project Assignment from Crowe Horwath is for financial analysis related to the issuance of two refunding bonds. One is to refund Airport TIF bonds originally issued in 2003 and the other is to refund a Downtown TIF bond issued in 2003. It is anticipated the refunding bonds would be issued at lower interest rates than the original bonds, thus creating a savings for Redevelopment. The maturity date of the refunding bonds would match the maturity date of the original bonds. Crowe Horwath's fee for providing the financial consulting services is $25,000 plus out of pocket costs. Staff recommends approval of the Project Assignment. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED CROWE HORWATH Mr. Varner and unanimously carried, the PROJECT AsSIGNMENT FOR BOND REFUNDING Commission approved Crowe Horwath (2003 AEDA TI'BOND AND 2003 SBCDA TI' Project Assignment for bond refunding (2003 BOND. AEDA TIF bond and 2003 SBCDA TIF bond). 28 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) L Ratification of Services Contracts Commission Role in Service Contract Staff Transaction Contractor Provided Amount Member 3408 Ardmore Trail Acquisition Wightman Phase I $1,700 Relos St. Vincent DePaul Petrie Environmental Assessment Lots #2,3, and 4 in Danch Survey $3,000 Kain Ignition Park Second Harner& Minor Subdivision, Assoc 1150 block of S. Franklin 1521 — 1523 Kemble Acquisition Witt Appraisal $400 Relos Appraisal Services 1521 Kemble Acquisition Michaels Appraisal $375 Relos Appraisal Services 1511 S. Kemble Acquisition Witt Appraisal $350 Relos Appraisal Services 1511 S. Kemble Acquisition Michaels Appraisal $375 Relos Appraisal Services 721 W. Indiana Acquisition Michaels Appraisal $1,250 Relos Appraisal Services 721 W. Indiana Acquisition R.E. Pitts Appraisal $1,575 Relos & Assoc 1521-1523 S. Kemble Acquisition Meridian Title Work $200 Relos Title Corp. 29 South Bend Redevelopment Commission Regular Meeting—September 27, 2011 6. NEW BUSINESS (CONT.) L Ratification of Services Contracts Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RATIFICATION OF Mr. Varner and unanimously carried, the SERVICES CONTRACTS. Commission approved Ratification of Services Contracts. 7. PROGRESS REPORTS There were no Progress Reports. THERE WERE No PROGRESS REPORTS 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Tuesday, October 11, 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 5:18 p.m. ,. 30