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HomeMy WebLinkAbout10-25-11 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING October 25, 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 (part of meeting) Mr. Greg Downes Mr. Donald Alford Members Absent: Ms. Stephanie Spivey Legal Counsel: Ms. Ann-Carroll Nash Redevelopment Staff Mr. Don Inks, Director Ms. Cheryl Phipps, Recording Secretary Mr. David Relos, Economic Development Specialist Mr. Matthew Sikora, Economic Development Specialist Ms. Debrah Jennings, Property Manager Mr. Jitin Kain, Senior CED Specialist Others Present: Mr. Tom Price, Mayor's Office Mr. Jeffrey Gibney, Executive Director Ms. Rita Kopala Ms. Mo Miller Mr. Jim Bognar Mr. Todd Zeiger, Historic Landmarks Foundation Mr. Marco Mariani, South Bend Heritage Foundation Mr. Phil Byrd, South Bend Heritage Foundation Mr. Bill Lamie, ADG Mr. Liz Maradik, Community Development Mr. Mark Seaman Mr. Geri Hathaway, Hathaway2, Inc. Ms. Eliaa Feasel Mr. Kevin Allen, South Bend Tribune Ms. Catherine Hostetler Ms. Patti Lesniewicz, Economic Development South Bend Redevelopment Commission Regular Meeting—October 25, 2011 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Tuesday, October 11, 2011. Upon a motion by Ms. King, seconded by Mr. COMMISSION APPROVED THE MINUTES OF THE Downes and unanimously carried, the Commission REGULAR MEETING OF TUESDAY,OCTOBER approved the Minutes of the Regular Meeting of 11,2011. Tuesday, October 11, 2011. 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted October 25, 2011 for approval. 305 FUND SBCDA BOND Gibson-Lewis, LLC 28,127.00 123 Wayne Garage Facade Removal 324 AIRPORT AEDA Meridian Title Corp 100.00 1504 South Kemble Ave Heppenheimer&Korpal 1,125.00 2011 Tax title deeds for 3 properties Lang, Feeney&Associates, Inc. 175.00 Site Plan Bosch Corp Property Plews Shadley Racher&Braun LLP 289.69 Oliver Plow Works Cost Recovery Baker&Daniel 1,796.00 South Bend Career Academy Hull &Associates, Inc 3,007.50 Ignition Park C&E Excavating 342,922.59 Mayflower Rd Sanitary Sewer Hull &Associates, Inc 1,521.50 Oliver Industrial Park Area C Hull &Associates, Inc 6,113.51 Lot 4 Studebaker NSRR South Bend Parks &Recreation 7,020.00 Property Management Sopko,Nussbaum, Inabnit&Kaczmarek 3,150.00 Legal Services Abonmarche 9,950.00 LaSalle Square, Ph I Meridian Title Corporation 200.00 2221 Prairie Ave Jerome E. Michaels, MAI 1,250.00 721 W Indiana Ave Meridian Title Corporation 100.00 1522 Prairie Ave Ancon Construction, Inc 100.00 913-915 West Indiana Ave C&E Excavating 282,619.30 Mayflower Blvd South Bend Water Works 160.69 Unity Gardens Indiana Michigan Power 7.00 501 Wenger St. R&R Excavating, Inc. 123,765.11 1503/1505 Prairie Ave Demo 420 FUND TIF DISTRICT-SBCDA GENERAL Indiana Michigan Power 8.00 325 S Lafayette Blvd Ampco System Parking 2,076.94 St. Joseph/225 Main St 2 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 3. APPROVAL OF CLAIMS (CONT.) 420 FUND TIF DISTRICT-SBCDA GENERAL NIPSCO 30.00 755 S Michigan St. Indiana Michigan Power 212.23 237 N Michigan St. South Bend Parks &Recreation 720.00 Property Management Indiana Michigan Power 7.66 755 S Michigan St. CB Richard Ellis 923.08 LaSalle Hotel Management Fee Sopko,Nussbaum, Inabnit&Kaczmarek 2,137.50 Legal Services Sopko,Nussbaum, Inabnit&Kaczmarek 22.25 South Bend Water Works 35.91 325 S Lafayette Blvd Rose Pest Solutions 99.00 LaSalle Hotel NIPSCO 30.00 329 S Lafayette Blvd 422 TIF DISTRICT WEST WASHINGTON South Bend Parks &Recreation 60.00 Property Management Sopko,Nussbaum, Inabnit&Kaczmarek 2,182.50 Legal Services 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT Torok Excavating &Demolition, Inc 69 298.00 Demolition of Former CJ's Pub & Doctor's Office Building 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA 41 South Bend Parks &Recreation 180.00 Property Management Meridian Title Corporation 200.00 Lawson-Fisher Associates, P.C. 46,587.41 S Main St to Lafayette Blvd Connector 433 REDEVELOPMENT ADMINISTRATION GENERAL FUND Sopko,Nussbaum, Inabnit&Kaczmarek 168.75 Legal Services 435 FUND DOUGLAS ROAD Abonmarche 3,000.00 Douglas Rd-Bus Shelters $ 941,479.12 Upon a motion by Mr. Downes, seconded by Ms. King COMMISSION APPROVED THE CLAIMS and unanimously carried, the Commission approved the SUBMITTED OCTOBER 25,2011,AND ORDERED Claims submitted October 25, 2011, and ordered checks THE CHECKS TO BE RELEASED to be released. 3 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 4. COMMUNICATIONS There were no Communications. THERE WERE NO COMMUNICATIONS 5. OLD BUSINESS A. South Bend Central Development Area (1) Update on Century Center Island Pavilion. Mr. Inks noted there is a report on the Century Center Island Pavilion. Mr. Relos noted that on July 26, 2011, the Commission approved a project budget of $565,000 for the Century Center Island Pavilion and drainage system. On October 20, 2011, bids were opened, with a low bid of$659,940 for the project. The increased cost of the project could be attributed to the uncertainty of what lays below the island, where the supports for the pavilion have to go. Those engineering aspects are currently reviewed and could possibly be altered. Staff asks that the additional $94,940 for the project be approved to allow the pavilion support system to be installed yet this year. Staff sees this as an upper limit and if the project can be engineered for less then that that would be great. By approving this today, it would allow the Board of Public Works to approve the low bid, get the underground support system done this year so early next spring the pavilion itself can be constructed, in time for spring events. Mr. Downes questioned whether the cost could be less then that. Mr. Lamie, ADG, responded yes. Mr. Lamie went on to say the biggest cost component of the original approval was the tinsel membrane structure. 4 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 5. OLD BUSINESS A. South Bend Central Development Area (1) Update on Century Center Island Pavilion. It remains that. We were able to find out that the costs the bidders will receive will remain as estimated. The cost that went up was the cost of the sub grade excavation and the repair work(concrete, curb replacement). Mr. Varner asked if the cost will perhaps exceed $659,940. Mr. Relos replied no. Mr. Downes asked if the project can be re- engineered more conservatively, is it reasonable to expect the excavation costs will go down. Mr. Lamie says that is expected. Upon a motion by Ms. King, seconded by COMMISSION APPROVED ADDITIONAL FUNDING Mr. Downes and unanimously carried, the IN THE AMOUNT OF$94,940 FOR THE CENTURY Commission approved additional funding in CENTER ISLAND PAVILION. the amount of$94,940 for the Century Center Island Pavilion. 6. NEW BUSINESS A. Receipt of Bids (1) Receipt of Bids for Parking Management Mr. Inks opened the seven bid packets received from SP Plus Municipal Services, Republic Parking, Denison Parking, DTSB, CPS Parking, AMPCO System Parking, Memorial Hospital& Health System and they were passed to legal to review compliance in fulfilling requirements. Upon review by legal, bid packets will be referred to Redevelopment Staff for bid recommendation. 5 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS A. Receipt of Bids (1) continued... Upon a motion by Ms. King, seconded by COMMISSION APPROVED TO REFER ALL BIDS Mr. Downes and unanimously carried, the RECEIVED FOR PARKING MANAGEMENT TO Commission approved to refer all bids LEGAL AND STAFF TO ASSURE PROPOSALS MEET STANDARDS AND MAKE RECOMMENDATIONS. received for parking management to legal and staff to assure proposals meet standards and make recommendations. B. Public Hearing (1) Public Hearing on Resolution No. 2944 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2011 and ending December 31, 2011, including all outstanding claims and obligations, fixing a time when the same shall take effect (Redevelopment Retail). Mr. Inks noted that the public hearing file is complete, containing a copy of the Notice of Hearing; a copy of Resolution No. 2944, the subject of the public hearing; an affidavit from Jacki Krolczyk, advertising Director of the South Bend Tribune, and Richard Andrysiak, Classified Manager of the Tri- County News that the Notice of Hearing was published in those newspapers on October 14, 2011. Ms. Jennings noted that there is a revised 2011 proposed budget provided. This year the Redevelopment retail shops experienced at its lowest point a 42%vacancy rate which resulted in a 25% loss in revenue. With the costs of re-leasing vacant space, unexpected utilities, vacant unit clean-out and leasing 6 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS B. Public Hearing (1) continued... commissions, the city's expenses have exceeded $23,502. The expenses are : • Replacement of HVAC unit at Vesuvio's Pizza in the amount of $14,000 • Rerouting of gas line for Bruno's Pizza in the amount of$4,000 • Leasing commissions for Vesuvio's Pizza in the amount of$5,040 • Loss of revenue from the vacancies Ms. Jennings said she is very hopeful that 2012 achieve 100% occupancy rate. That would result in a 25% increase in revenue. Staff recommends approval of the 2011 revised budget. Ms. Jones opened the public hearing for PUBLIC'HEARING ON RESOLUTION No.2944 anyone who wished to speak for or against Resolution No. 2944. There was no one who wished to speak. Ms. Jones closed the public hearing for whatever action the Commission wished to take. (2) Commission action on Resolution No. 2944. Mr. Varner asked if the City had vacant retail space available. Ms. Jennings responded there are two vacancies. Ms. Jones asked if it was extraordinary that the city has expenses for a new tenant (Vesuvio's expense used as example). Are there likely to be similar cases? Mr. Inks 7 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS B. Public Hearing (2) continued... replied it is not unusual to incur expenses to obtain a tenant. Ms. Jones asked if staff needs to include such expenses in the next budget. Mr. Inks and Ms. Jennings agreed that is the plan. Mr. Downes asked if staff budgets for a reserve fund. Mr. Inks replied there is typically a line in the budget for improvements to the spaces. Mr. Downes noted an incorrect figure in report of net income. Incorrect $23,502 figure; should reflect $59,556. Dually noted. Upon a motion by Mr. Downes, seconded by APPROVED RESOLUTION No.2944 Mr. Alford and unanimously carried, the APPROPRIATING MONIES FOR THE PURPOSE OF Commission approved Resolution No. 2944 DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR appropriating monies for the purpose of BEGINNING JANUARY 1,2011 AND ENDING defraying the expenses of certain local public DECEMBER 31,2011,INCLUDING ALL improvements for the fiscal year beginning OUTSTANDING CLAIMS AND OBLIGATIONS, January 1, 2011 and ending December 3 1, FIXING A TIME WHEN THE SAME SHALL TAKE 2011, including all outstanding claims and EFFECT(REDEVELOPMENT RETAIL). obligations, fixing a time when the same shall take effect (Redevelopment Retail). C. Housing (1) Loan and Grant in connection with the South Bend Home Improvement Program for property located at 104 S. Ironwood Drive (Clyde J. Gilvin, Jr. and Donita J. Gilvin). Mr. Inks noted that the loan is in the amount of$8,200; the grant is $8,030. 8 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS (CONT.) C. Housing (1) continued... Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE LOAN AND GRANT Mr. Varner and unanimously carried, the IN CONNECTION WITH THE SOUTH BEND HOME Commission approved the Loan and Grant in IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 104 S.IRONWOOD DRIVE(CLYDE J. connection with the South Bend Home GILVIN,JR.AND DONITA J.GILVIN). Improvement Program for property located at 104 S. Ironwood Drive (Clyde J. Gilvin, Jr. and Donita J. Gilvin). D. South Bend Central Development Area (1) Resolution No. 2951 expanding the boundaries of the South Bend Central Development Area, expanding the Allocation Area for the purposes of tax increment financing and amending the Development Plan for the South Bend Central Development Area. Mr. Kain noted that on September 27, 2011, he reported to the Commission regarding the Howard Park Master Plan and the Transpo site and spoke about residential development on that site. This is the declaratory resolution to expand the South Bend Central Development Area boundary to include a portion of the Transpo site that is currently outside the development area as well as some other parcels adjacent to Transpo that are non-compatible uses. The primary function of the expansion would be to allow the city to help with infrastructure work when the Transpo site redevelopment takes place. The Department of Public Works prepared a budget totaling approximately $1.5 million for infrastructure over the next few years as the Transpo project takes off The expansion 9 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS D. South Bend Central Development Area (1) continued... of the SBCDA would allow the city to assist with that infrastructure. The next step is to take the resolution to the Area Plan Commission, the Common Council and back to the Redevelopment Commission final approval. Staff is asking for approval of Resolution No. 2951. Mr. Varner expressed his concern about residential tax revenue accruing to a TIF district. Mr. Inks responded that in this particular case he doesn't believe it would accrue to the TIF area. Residential taxes are excluded from being deferred to TIF in areas that become TIF areas after a certain date. As we expand the boundaries of the SBCDA TIF, the expanded area would provide increment for TIF, but go to the general assessment. The expanded area would qualify for infrastructure expenses, or acquisition/disposition costs. However, the portion of the former Transpo site that is already in the TIF area would contribute its taxes to the TIF. Mr. Varner asked if staff had estimated the property taxes that might be generated from housing at the Transpo site. Mr. Kain replied that staff has done a rough estimate. The Transpo site is about ten acres and the plan calls for approximately 50 units. There are five acres within the SBCDA, and five acres on the side. So with 25 homes on each half and an estimate of$2,500 tax per home, the taxes to be generated would be approximately $62,500 per year to the TIF and the same to the broader jurisdictions. 10 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS D. South Bend Central Development Area (1) continued... Mr. Downes noted that he didn't think the philosophical discussion about whether to bring the additional area into the SBCDA TIF belongs with the Commission, but with the Common Council. Mr. Varner noted, then, if there's a change in plans for the area to commercial, rather than residential, then the increment would accrue to the TIF. Mr. Gibney responded that we are not anticipating anything other than residential there; residential is the most logical development strategy for that land. Ms. Jones noted that most tax money comes from business, not residential. It was nearly 20 years ago that residential taxes were excluded from TIF. Mr. Varner asked Mr. Kain if he could bring a copy of the pro-forma to the next Commission meeting. Mr. Kain responded yes he will. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2951 Ms. King and unanimously carried, the EXPANDING THE BOUNDARIES OF THE SOUTH Commission approved Resolution No. 2951 BEND CENTRAL DEVELOPMENT UREA, EXPANDING THE ALLOCATION AREA FOR THE expanding the boundaries of the South Bend PURPOSES OF TAX INCREMENT FINANCING AND Central Development Area, expanding the AMENDING THE DEVELOPMENT PLAN FOR THE Allocation Area for the purposes of tax SOUTH BEND CENTRAL DEVELOPMENT UREA. increment financing and amending the Development Plan for the South Bend Central Development Area. (2) Staff report on disposition of property (310 E South, 602 Carroll, 628 Rush, 609 Columbia and 620 Columbia. 11 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS D. South Bend Central Development Area (2) continued... Mr. Sikora noted that on June 28, 2011 the Redevelopment Commission approved bid specifications, fair-market valuation, and advertising of legal notices to begin the disposition process for five properties in the Monroe Park neighborhood of the South Bend Central Development Area. No bids were received for any of the properties at the July 26, 2011 meeting. The law states that after a thirty-day period the properties could be sold at a negotiated price less than the Minimum Offering Price. On September 27, 2011 the Redevelopment Commission approved a contract with Bruce Gordon to list and market four of the five properties. We have now received offers on all five of the properties. For 310 E. South Street and 602 Carroll Street we've received a cash offer of$5,000 and $10,000, respectively. A neighbor adjacent to the properties plans to install his mother in one of the homes and maintain the other as a rental unit, keeping the current tenant (an elderly woman renting through HDC) until such time as she decides to vacate. Both properties will require maintenance/repairs of up approximately $7,500, which is a part of the reason for the lower bids. The bidder on these properties has a well-maintained home (no code issues and taxes are up to date), is active in the neighborhood association, and has expressed his desire to purchase these properties in an effort to maintain the integrity of the neighborhood. As such, staff recommends accepting the offers and requests permission 12 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS D. South Bend Central Development Area (2) continued... to proceed with a Contract for Sale and associated documents (including lease termination with HDC) necessary for the sale of these two properties. For 628 Rush Street, 609 Columbia Street and 620 Columbia Street we've received one offer for 628 Rush Street for $10,000 and a second offer for $40,000 for the three properties and including 310 E. South(or approximately $10,000 per home). In both cases, it's been determined that the offers are likely not coming from within the neighborhood, but from out of town (and out of state): investors looking to rent or turn them over. Staff, in consultation with our real estate agent, requests a rejection of all offers for these properties, at this time. Mr. Varner expressed his concerns to keep with local investors. Mr. Gibney stated that Mr. Sikora did a good job of"due-diligence" on all of these properties. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED THE SALE OF 310 E Mr. Downes and unanimously carried, the SOUTH AND 602 CARROLL FOR$5,000 AND Commission approved the sale of 3 10 E $10,000 RESPECTIVELY AND REJECTED THE OFFER FOR 628 RUSH,609 COLUMBIA AND 620 South and 602 Carroll for $5,000 and COLUMBIA. $10,000 respectively and rejected the offer for 628 Rush, 609 Columbia and 620 Columbia.. E. Airport Economic Development Area (1) Proposal for pre-design of Accelerator/Prototyping building(s) in Ignition Park. 13 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS E. Airport Economic Development Area (1) continued... Mr. Inks asked that this item be tabled until further notice. Upon a motion by Mr. Varner, seconded by COMMISSION TABLED ITEM 6.E(1)UNTIL Mr. Downes and unanimously carried, the FURTHER NOTICE. Commission tabled item 6.E (1) until further notice. (2) Proposal to conduct Off-Site Monitoring Well Installation and/or Groundwater Sampling in the vicinity of Oliver Industrial Park. Mr. Kain noted that Hull & Associates, Inc. has submitted a proposal to install monitoring wells around the Oliver Industrial Park and to monitor the ground water in that area. Oliver Industrial Park is enrolled in the Indiana Department Managements VRP, Voluntary Remediation Program. The report for that program is due by the end of this year. The testing allows the city to file reports on time. The proposal by Hull & Associates includes an estimate of the cost for remediation. The testing will essentially install five to six wells in the area to monitor the ground water supply, but then depending on the initial test, additional testing might be done. The proposal has two parts: the first is the sampling and the second is preparing the work plan that needs to be submitted by the end of September. In the cost estimate, we'll see task one for $12,966 and the well installation for $48,060. Both these items need to be done. The additional sampling, which is in the amount of$11,000, may need to be done, depending on the results of the 14 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS E. Airport Economic Development Area (2) continued... first two. Staff is asking for approval of $83,308 to do this testing. The city has money budgeted for this as part of the Oliver Park Environmental Remediation. Mr. Varner asked if once the wells are drilled are they sampled periodically. Mr. Kain responded yes, for a period of time. Mr. Varner asked if the proposal for five wells at $10,000 is a common cost. Is that due to depth of well or is it extraordinary because of the neighborhood? Mr. Kain explained that there are two levels of sampling. The top layer, the ground water supply, and the lower level (20 and 30 feet). The report that Hull produces will help the city figure out the level of remediation that needs to be conducted. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED PROPOSAL FROM HULL Mr. Varner and unanimously carried, the ASSOCIATES TO CONDUCT OFF-SITE Commission approved proposal from Hull MONITORING WELL INSTALLATION AND/OR GROUNDWATER SAMPLING IN THE VICINITY OF Associates to conduct Off-site Monitoring OLIVER INDUSTRIAL PARK FOR THE SCOPE OF Well Installation and/or Groundwater SERVICES AND FEE PROPOSED Sampling in the vicinity of Oliver Industrial Park for the scope of services and fee proposed. (3) Resolution No. 2950 amending the Development Plan for the Airport Economic Development Area and adding one or more parcels to the List of Parcels to be Acquired. Mr. Sikora noted that on October 11, 2011, the Commission authorized staff to conduct 15 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS E. Airport Economic Development Area (3) continued... surveys, investigations, and thoroughly study the Airport Economic Development Area (AEDA) for the potential to add properties to the acquisition list. This process included the gathering of information on parcels to be added, and an estimation of costs associated with their acquisition and redevelopment. Resolution No. 2950 is the Declaratory Resolution to amend the AEDA to add 401 North Bendix and the 1300 block of South Michigan Street the List of Parcels to be Acquired. The properties have been assessed and their potential acquisition found to be consistent with the goals and objectives of the Airport Economic Development Area Development Plan. The parcel located at 401 North Bendix is adjacent to the Bosch complex and currently owned by Honeywell, Inc. The ability to add this parcel would allow for the broadening of development possibilities at the exiting Bosch site as we look to future users and their potential plans for expansion. The additional three parcels are located at the 1300 block of South Michigan Street. This is an area in which the city owns a number of individual parcels within the block, and acquisition of the sites would allow for better site control and a more developable/ marketable site. The expected cost for the acquisition and improvements to these properties is approximately $500,000. Approval of Resolution No 2950 does not commit the 16 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS E. Airport Economic Development Area (3) continued... Redevelopment Commission to acquire and improve the properties at this amount. Upon approval by the Commission, resolutions will be put before the Area Plan Commission and Common Council for their approval, before a Public Hearing and Confirming Resolution would be presented to the Commission for final approval. Approval for advertising for the Public Hearing is also requested of the Commission. Advertising would be done after approval from the Common Council is granted. Staff believes it would be of public utility and benefit to amend the Development Plan by adding these properties to the acquisition list to allow for their potential acquisition. Staff requests Commission approval of Resolution No. 2950, and the necessary advertising to carry it forward. Mr. Downes asked what was on the property. Mr. Sirkora answered that one contains a church and the other two are vacant. Mr. Varner asked if there was funding available. Mr. Sikora replied that staff is not requesting to purchase them immediately, but wants to be in the position to acquire them expeditiously if it should need to. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2950 Mr. Alford and unanimously carried, the AMENDING THE DEVELOPMENT PLAN FOR THE Commission approved Resolution No. 2950 AIRPORT ECONOMIC DEVELOPMENT AREA AND ADDING ONE OR MORE PARCELS TO THE LIST OF amending the Development Plan for the PARCELS TO BE ACQUIRED. Airport Economic Development Area and adding one or more parcels to the List of Parcels to be Acquired. 17 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS E. Airport Economic Development Area (4) Proposal for survey and engineering services for Ignition Park Major Subdivision. Mr. Kain noted that planning for Ignition Park infrastructure is currently underway. This initial planning has included determining the location for Park utilities and the major access roads into the Park. The next logical step is to develop a Major Subdivision Plat of the Park. This process will help identify lots within the Park with defined boundaries that can be marketed to potential Park clients. Additionally, a major subdivision plat allows for the dedication of roadways as public streets. Danch, Harner& Associates has submitted a proposal to conduct surveying services to develop the Major Subdivision Primary Plat, Final Plat and prepare the necessary documents to file with the Area Plan Commission for a fee of$23,295. Staff requests approval. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED PROPOSAL FROM Mr. Downes and unanimously carried, the RANCH HARNER&ASSOCIATES FOR SURVEY Commission approved proposal from Danch AND ENGINEERING SERVICES FOR IGNITION PARK MAJOR SUBDIVISION IN THE AMOUNT OF Harner& Associates for survey and $23,295 engineering services for Ignition Park Major Subdivision in the amount of$23,295. (5) Update on Ignition Park Phase IA Infrastructure Scope of Services. Mr. Kain noted that on July 26, 2011, the Redevelopment Commission approved a proposal from BSA LifeStructures, Inc. to initiate site infrastructure design work 18 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS E. Airport Economic Development Area (5) continued... required for Phase I of the Ignition Park Master Plan. The total fee for design services was approved at $128,000. Included, also, with this proposal was an estimate of construction costs for Phase IA in the amount of$2,774,663. Just prior to the July 26, 2011, Commission meeting, the scope of services was revised to include design work for Cotter Street extending it to the circular drive. This revision did not change the design service fee or the construction estimate amount. Unfortunately, an older version of the scope of work and estimate were included in the Commission packet. A revised copy of the scope and estimate is provided today. Staff requests Commission approval to update the scope and construction estimate in the BSA proposal approved on July 26, 2011. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE UPDATED IGNITION Mr. Alford and unanimously carried, the PARK PHASE IA INFRASTRUCTURE SCOPE OF Commission approved the updated Ignition SERVICES TO INCLUDE COTTER STREET. Park Phase I Infrastructure Scope of Services to include Cotter Street. (6) Resolution No. 2945 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Ignition Park Phase lA Infrastructure). Mr. Kain noted that on July 26, 2011, the Redevelopment Commission approved a proposal from BSA LifeStructures, Inc. to 19 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS E. Airport Economic Development Area (6) continued... initiate site infrastructure design work required for Phase I of the Ignition Park Master Plan. The scope of this proposal included: • Construction of the southern portion of the circle as proposed in the Ignition Park Master Plan • Extension of Cotter and Stull Streets to the circle • Construction of the new south entry road from the circle to meet with Scott Street and provide the access road into Lot 4, the Data Realty site • Design of utility infrastructure to support the Data Realty project The Phase IA infrastructure cost estimate is $2,774,663. The Resolution and the Master Agency Agreement will allow the Board of Public Works to facilitate project bidding, award contacts and manage infrastructure construction to completion. To ensure compliance with all City of South Bend standards, BPW staff will also be involved in project discussions during the design development phase. Staff requests approval of Resolution No. 2945 and the Addendum To Master Agency Agreement for Ignition Park Phase I Infrastructure Project. 20 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS E. Airport Economic Development Area (6) continued... Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2945 Mr. Varner and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 2945 OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT(IGNITION PARK PHASE IA approving and authorizing the execution of INFRASTRUCTURE). an Addendum to the Master Agency Agreement (Ignition Park Phase I Infrastructure). (7) Administrative Settlement for acquisition of 1528 S. Kemble. Mr. Relos noted that on July 23, 2010, the Commission approved Resolution No. 2728, setting the offering price for acquisition of 1528 S. Kemble property at $40,500, the average of two independent appraisals. Staff has been working with the property owner since that time, to reasonably reach an agreement to acquire this property. This property is a large, five bedroom, two bath, two story house. It is 2,284 square feet, with recent improvements, including new second story thermo windows, new bath room and kitchen, and laminate flooring. The property owner has expressed interest in selling this property, but is not interested in being relocated under the terms of the Act. She would instead like a lump sum payment. Following the Act, total estimated acquisition and relocation costs associated with this property would be $67,000. The owner has agreed to sell for $65,000, which is the price paid this past August for a similar, but smaller, property across the street. Staff feels the acquisition cost of$65,000 is reasonable for this property, and requests your approval 21 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS E. Airport Economic Development Area (7) continued... of the administrative settlement. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE ADMINISTRATIVE Mr. Alford and unanimously carried, the SETTLEMENT FOR ACQUISITION OF 1528 S. Commission approved the Administrative KEMSLE Settlement for acquisition of 1528 S. Kemble. (8) Resolution No. 2946 related to acquisition of property in the Airport Economic Development Area (1521 S. Kemble). Mr. Relos noted that 1521 S. Kemble Ave. was added to the Airport Economic Development Area Acquisition List by Resolution No. 2668 on May 21, 2010. This particular property is a two story duplex containing two units. Both units are two bedroom, one bath, with a kitchen, living, and dining room. Total square footage is 1,776, with a three car garage. Resolution No. 2946 sets the acquisition value of the property at $45,500 the average of two independent appraisals. Staff requests approval of Resolution No. 2946. Mr. Downes asked how many properties are left in the area and could he provide updated information at the next meeting. Mr. Relos responded that he will provide that information at the next Commission meeting. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2946 Mr. Alford and unanimously carried, the RELATED TO ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 2946 AIRPORT ECONOMIC DEVELOPMENT AREA related to acquisition of property in the (1521 S.KEMBLE) 22 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS E. Airport Economic Development Area (8) continued... Airport Economic Development Area (1521 S. Kemble). F. West Washington-Chapin Development Area (1) Resolution No. 2947 related to acquisition of property in the West Washington- Chapin Development Area (803 W. Washington). Mr. Relos noted that 803 W. Washington was added to the West Washington Chapin Development Area Acquisition List by Resolution No. 2876 on June 14, 2011. It was added in an effort to stabilize this building and bring its use to one that is more compatible with the surrounding neighborhood, which through the years has reclaimed its historic homes back to single family, and has become a museum campus area of the City. The Commission was only interested in acquiring the property if Indiana Landmarks would agree to accept the property. On October 12, Indiana Landmark's Project Review Committee agreed to move forward with its acceptance. Final approval will be given by their Executive Committee on November 9. If approved, a closing would be scheduled, with transfer to Indiana Landmarks as soon thereafter as possible. The attached letter from Indiana Landmarks explains their plans for this historic property. This property is a three-story, ten-unit, granite block building, built in 1890 by the 23 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS F. West Washington-Chapin Development Area (1) continued... well-respected local businessman, William Kizer. The house contains 7,200 square feet with a 2,000 square foot carriage house. It is across the street from Copshaholm, the Oliver family personal residence, which now houses the Northern Indiana Center for History. Resolution No. 2947 sets the acquisition value of the property at $411,000, the average of two independent appraisals. Staff requests approval of Resolution No. 2947. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2947 Mr. Varner and unanimously carried, the RELATED TO ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 2947 WEST WASHINGTON-CHAPIN DEVELOPMENT UREA,SUBJECT TO LEGAL REVIEW(803 W. related to acquisition of property in the West WASHINGTON) Washington-Chapin Development Area, subject to legal review (803 W. Washington). (2) Resolution No. 2948 approving and accepting a counter offer for the acquisition of property in the West Washington-Chapin Development Area (803 W. Washington). Mr. Relos noted that the owner of 803 W. Washington has submitted a counter offer of $441,000. Of this $441,000, $30,000 will be escrowed at closing. Upon closing with Indiana Landmarks, it will be released and used by them for exterior rehab (new roof, tuck pointing, and windows). Staff feels the acquisition cost of$441,000 for this property is reasonable, and requests your approval of Resolution No. 2948. 24 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS F. West Washington-Chapin Development Area (2) continued... Mr. Varner asked whether it's customary to include a reserve that is returned immediately. Mr. Relos stated that it's not something ordinarily done. The building needs immediate repairs. Mr. Zeiger stated that Indiana Landmarks intends to apply for a grant that requires a match. This was a way to get that match. Mr. Downes asked if the deal can go through without this happening. Mr. Relos mentioned there is an escrow agreement being drawn between the property owner and Indiana Landmarks. Ms. Nash input that legal had the opportunity to review and discuss this. Her suggestion was that the Commission approve it subject to final legal review and compliance with state law. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2948 Mr. Varner and unanimously carried, the APPROVING AN ACCEPTING A COUNTER OFFER Commission approved Resolution No. 2948 FOR THE ACQUISITION OF PROPERTY IN THE WEST WASHINGTON-CHAPIN DEVELOPMENT approving an accepting a counter offer for AREA,SUBJECT TO LEGAL REVIEW AND the acquisition of property in the West COMPLIANCE WITH STATE LAW(803 W. Washington-Chapin Development Area, WASHINGTON) subject to legal review and compliance with state law (803 W. Washington). (3) Memorandum of Understanding with South Bend Heritage Foundation for development of the Rushton Building. Mr. Relos noted that the Ruston Building at 501 W. Washington was built in 1906 by the brothers John and Edward Rush, respectively 25 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS F. West Washington-Chapin Development Area (3) continued... the President and Treasurer of the Fidelity Land Company. The four-story Rushton was the city's first high rise apartment building. The building first housed key people who played pivotal roles in turn of the century South Bend, and later housed many of the teachers at Central High School. Since 2002, the building has stood vacant. Indiana Landmarks for the past several years has tried to gain control of the building, and now stands ready to turn the building over to South Bend Heritage Foundation (SBHF) for development into a 23 unit, low to moderate income senior housing complex. Because the Rushton was built with common kitchen and dining areas, extensive remodeling of the building is required. Total development costs are estimated to be $3.4 million. Funding for the project will come from $2.8 million in Low Income Housing Tax Credits and $277,700 in Historic Tax Credits. To fully fund the project, SBHF requests $322,300 in West Washington Chapin Development Area TIF. The attached MOU and Development Agreement detail each party's responsibilities. Commission improvements will allow off street parking for residents and visitors, necessary site utility upgrades, sidewalks and curbs, landscaping and lighting, exterior tuck pointing and cleaning, and new thermo windows. Commission participation in this project is 26 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS F. West Washington-Chapin Development Area (4) continued... contingent on SBHF being granted the Low Income and Historic Tax Credits through the Indiana Housing & Community Development Authority and the Indiana Division of Historic Preservation, which will be announced in February 2012. If the tax credits are awarded, construction will begin October 2012, with project completion October 2013 (with 2013 TIF funds). Mr. Varner said it was his calculation that this renovation would cost $200 per square foot with new construction only costing $175 per square foot. Mr. Mariani answered his concern with looking at just the hard cost of construction of$1.9 million, it's about $118 per square foot. Additional costs being soft costs. Mr. Varner stated that that is still $200 per square foot. Mr. Gibney added that the majority of the funding for this project is from the private sector. The city's participation is only 10%. Mr. Gibney thinks it is the solution needed for this building. Mr. Varner also asked if South Bend Heritage Foundation will pay taxes on the renovated property. Mr. Mariani responded that, since it will be an income producing property, a $10,000 annual tax payment has been built into the pro-forma for the operating cost of the building. Mr. Downes asked if there was enough demand for downtown rental housing to fill the building. Mr. Mariani answered that studies show demand for that caliber of multi-family housing. It's a great location 27 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS F. West Washington-Chapin Development Area (5) continued... for senior housing for many reasons. Ms. Jones added because it's a low-income senior housing building, it would have been possible to squeeze another unit or two into the building, but with much consideration there's going to be a community center for the residents. Ms. Jones also disclosed that she is a member of the South Bend Heritage Foundation. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE MEMORANDUM OF Mr. Alford and unanimously carried, the UNDERSTANDING WITH SOUTH BEND HERITAGE Commission approved the Memorandum of FOUNDATION FOR DEVELOPMENT OF THE RUSHTON BUILDING. Understanding with South Bend Heritage Foundation for development of the Rushton Building. G. South Side Development Area There was no business in the South Side Development Area. H. Northeast Neighborhood Development Area (1) Resolution No. 2949 amending the Development Plan for the Northeast Neighborhood Development Area. Ms. Maradik noted that Resolution No. 2949 revises sections of the Northeast Neighborhood Development Plan, updates the document and modifies existing plan exhibits in order for the Plan to better reflect the future goals for the area by taking into account recent, or soon to be completed, 28 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS H. Northeast Neighborhood Development Area (1) continued... developments such as, but not limited to, Eddy Street Commons (Phase I and II), State Road 23 improvements, and the new Five Points Intersection configuration. The amendment does not modify the existing NNDA boundary. The Amendment was completed through an inclusive process that involved a series of meetings with representatives of the Northeast Neighborhood Council (NENC) and the Northeast Neighborhood Revitalization Organization (NNRO). The Amendment was presented to both organizations at their October meetings for final comments or questions. Once the Declaratory Resolution is approved, separate resolutions will also be submitted for approval to the Area Plan Commission and the Common Council prior to a final public action before the Commission in the form of a public hearing and Confirming Resolution. Staff requests Commission approval of Resolution No. 2949. Mr. Varner asked what exactly does this resolution provide. Ms. Maradik replied that it takes into account a number of the projects that have been occurring in the area. The plan was originally written in 2003, so it does not have a lot about SR 23 improvements and Eddy Street Commons. It modifies some of the sub-areas to account for things like the reconfiguration of the five points 29 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS H. Northeast Neighborhood Development Area (1) continued... intersection. It expands the sub-area dealing with Eddy Street to include the full portions of Eddy Street Commons Phase I and II. And, it updates proposed zoning based on activities occurring in the northeast. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED DECLARATORY Mr. Alford and unanimously carried, the RESOLUTION No.2949 AMENDING THE Commission approved Declaratory DEVELOPMENT PLAN FOR THE NORTHEAST NEIGHBORHOOD DEVELOPMENT UREA. Resolution No. 2949 amending the Development Plan for the Northeast Neighborhood Development Area. (2) Proposal for conceptual streetscape study of the Eddy Street Corridor. Mr. Kain noted that the Northeast Neighborhood Revitalization Organization (NNRO) would like to engage the services of DLZ Indiana, LLC to conduct a conceptual streetscape study of the Eddy Street corridor from Campeau Street South to Colfax Avenue. The study will look at streetscape improvements to Eddy Street within and beyond the public right-of-way outside of the street pavement and include: • Replacement of curb, sidewalk and ADA compliant sidewalk ramps • Replacement of streetlights to match the SR23 project • Introduction of a tree lawn along the East and West sides of the street • Replacement of street signs to match Eddy Street Commons street signs In order to accomplish this, DLZ will study 30 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS H. Northeast Neighborhood Development Area (2) continued... the existing right-of-way and determine if additional properties need to be acquired for the project. They will also suggest project phasing to ensure prudent use of available TIF funding. The total fee proposed by DLZ to conduct the study is $28,500. The NNRO is proposing a 25/75 split of the fee between them and the Redevelopment Commission. This would equate to $7,125 from the NNRO budget and 21,375 from the NNDA TIF. Staff requests Commission approval to allocate $21,375 from the NNDA TIF towards this study. Mr. Varner asked how far south will they address. Ms. Kain responded three blocks south, both sides of the street. Mr. Alford asked how much we paid for the Lakota Study for Eddy Street. Mr. Byrd replied that this study will go beyond what the Lakota Study did for us. DLZ will also do cost estimates and engineering costs for curbs and sidewalks. The Lakota Study only did the concept. The DLZ Study will continue the concept study down through LaSalle which includes a parkway down the middle. To do that, the city will negotiate with the state which is a 10-15 year process. What Mr. Gilot suggested is that, in the short term, we look at leaving the state right-of- way the same and do what we could do to upgrade the street on each side. 31 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS H. Northeast Neighborhood Development Area (2) continued... Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE PROPOSAL FROM Mr. Alford and unanimously carried, the DLS FOR CONCEPTUAL STREETSCAPE STUDY OF Commission approved the proposal from THE EDDY STREET CORRIDOR FOR THE SCOPE OF SERVICES AND FEE PROPOSED DLS for conceptual streetscape study of the Eddy Street Corridor for the scope of services and fee proposed. I. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. J. Other (1) Proposal for Aerial Photography Update of various locations. Mr. Sikora noted that Aerovision Aerial Photography has submitted a proposal to provide updated digital aerial photography for five project areas in the City that have seen extensive redevelopment work in the past year: Ignition Park, Oliver Industrial Park, Kroc Center, LaSalle Square and Coveleski Park. The City has built a photo archive for many of these multi-year projects and can use the photos to track progress as well as have updated images for meetings and presentations. The proposal is in the amount of$900 and staff requests approval of this proposal. Mr. Downes asked when the photography was last updated. Mr. Inks responded three years ago. 32 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS J. Other (1) continued... Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED PROPOSAL FOR AERIAL Mr. Varner and unanimously carried, the PHOTOGRAPHY UPDATE OF VARIOUS LOCATIONS Commission approved Proposal for Aerial IN THE AMOUNT OF$900. Photography Update of various locations in the amount of$900. K. Ratification of Services Contracts Commission Role in Service Contract Staff Transaction Contractor Provided Amount Member Parcels to be added Add property Danch, Create legal $575 Kain to SBCDA near and to acquisition Harner& description including portion of list Associates former Transpo facility 505 E Ireland Acquisition Meridian Title Work $200 Schalliol (Ireland Greens Title Trucking) 913-915 W Indiana Acquisition Meridian Title Work $100 Relos Title 33 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS (CONT.) K. Ratification of Services Contracts continued... 1522 Prairie Ave Acquisition Meridian Title Work $100 Relos Title 1504 S Kemble Acquisition Meridian Title Work $100 Relos Title 1509 Scott St Acquisition Witt Appraisal $350 Relos Appraisal Services 1509 Scott St Acquisition Michaels Appraisal $375 Relos Appraisal Services 725-731 W Indiana Acquisition Michaels Appraisal $600 Relos Appraisal Services 725-731 W Indiana Acquisition Witt Appraisal $550 Relos Appraisal Services Upon a motion by Mr. Downes, seconded by Mr. COMMISSION APPROVED RATIFICATION OF Varner and unanimously carried, the Commission SERVICE CONTRACTS. approved Ratification of Service Contracts. 34 South Bend Redevelopment Commission Regular Meeting—October 25, 2011 6. NEW BUSINESS (CONT.) L. Ratification of Temporary Use Agreements Use/Agency Lot Event Dates of Use Downtown South Bend 325-329 S. Lafayette Toys for Tots Tues. October 25, 2011 (Schillings Building) to Wed. Feb. 1, 2012 Upon a motion by Mr. Downes, seconded by Mr. COMMISSION RATIFIED THE TEMPORARY USE Varner and unanimously carried, the Commission AGREEMENTS APPROVED BY STAFF SINCE ratified the Temporary Use Agreements approved OCTOBER 11 by staff since October 11. 7. PROGRESS REPORTS There were no Progress Reports. No PROGRESS REPROTS 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Tuesday, November 8, 2011, at 4:00 p.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission the meeting was adjourned at 5:30 p.m. 35