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HomeMy WebLinkAbout12-07-07 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING December 7, 2007 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Mr. Karl King, Vice President Mr. Greg Downes, Secretary Mr. Hardie Blake, Jr. Mr. Ken Peczkowski Legal Counsel: Mr. Shawn Peterson, Esq. Redevelopment Staf£ Mr. Don Inks, Director Mrs . Cheryl Phipps, Recording Secretary Mr. Jeff Gibney, Executive Director Mr. Bill Schalliol, Economic Development Specialist Mr. Robert Mathia, Economic Development Specialist Ms. Jennifer Laurent, Economic Development Specialist Mr. Nicholas Witwer, Economic Development Specialist Ms. Ann Kolata, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Ms. Jamie Loo, South Bend Tribune Ms. Rita Kopala Ms. GlendaRae Hernandez Mr. Marty Wolfson, Community Forum for Economic Dev Ms. Regina Emberton, CB Richard Ellis Ms. Cathy Catlin, CB Richard Ellis Mr. Charles Jamerson Mr. Jim Cierzniak Ms. Alison Levey Ms. Mindy Risser, CB Richard Ellis Mr. John Voorde, City Clerk Mr. Rick Reid, Blackthorn Golf Club Mr. John Quickstad, Blackthorn Golf Club Mr. James Rubleske Mr. Michael Divita, Community Development Mr. Tom Price, Mayor's Office Ms. Amy Hardman Mr. Jerry Niezgodski Ms. Elizabeth Leonard, Financial & Program Management South Bend Redevelopment Commission Regular Meeting -December 7, 2007 2. APPROVAL OF MINUTES A. Approval of Minutes of the Continued Meeting of Thursday, November 8, 2007. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved the Minutes of the Continued Meeting of Thursday, November 8, 2007. B. Approval of Minutes of the Regular Meeting of Friday, November 16, 2007. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, November 16, 2007. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE CONTINUED MEETING OF THURSDAY, NOVEMBER 8, 2007 COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, NOVEMBER 16, 2007 Redevelopment Commission Claims submitted December 7, 2007 for approval. 324 AIRPORT AEDA Sopko, Nussabaum, Inabnit &Kaczmarek 33.75 The Robert Henry corporation 82,051.00 Walsh & Kelly, Inc. 33,546.35 Walsh & Kelly, Inc. 10,277.40 Witt Appraisal Services, Inc 1,000.00 Michaels Appraisal Service 700.00 Ken Herceg & Association, Inc. 9,814.51 Owners' Association at Blackthorn Inc., 4,794.44 Walsh & Kelly, Inc. 93,831.99 Meridian Title 251,405.00 414 SAMPLE EW1NG GENERAL Indiana Michigan Power 6.88 Wells Fargo 400.00 Ritschard Bros., Inc. 22,089.87 420 FUND TIF DISTRICT-SBCDA GENERAL Sopko, Nussabaum, Inabnit &Kaczmarek 393.75 CenterPoint Properties 7,912.50 South Bend Work Works 218.32 Meridian Title Corporation 2,930.00 Dylan Dr. Purchase Property River of 2 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 3. APPROVAL OF CLAIMS (CONT.) 420 FUND TIF DISTRICT-SBCDA GENERAL (CONT.) City of South Bend 552.07 Witt Appraisal Services, Inc 1,400.00 Michaels Appraisal Service 1,550.00 R.E. Pitts & Associates, Inc. 4,800.00 Jerome E. Michaels 5,250.00 Wightman Petrie 4,971.25 Meridian Title 97,911.08 433 FUND REDEVELOPMENT ADM1N GENERAL Sopko, Nussabaum, Inabnit & Kaczmarek 1,001.25 428 FUND AIRPORT 2003 BOND Trans Tech Electric, L.P. 3,153.54 Total $ 641,994.95 Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted December 7, 2007, and ordered checks to be released 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Public Hearing (1) Public Hearing concerning proposed Supplemental Appropriation Resolutions of the South Bend Redevelopment District. (Various allocation areas for the payment of expenses related to their respective allocation areas) 520 W Wayne St. COMMISSION APPROVED THE CLAIMS SUBMITTED DECEMBER 7, 2007, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS 3 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Ms. Jones noted the copies of the Commission's Public Hearing Procedures available at the sign-in table. She also indicated that during the public comment time she would take comments in favor for each resolution followed by comments against each resolution. Mr. Inks noted that the Public Hearing file is complete for the Supplemental Appropriation Resolutions for each TIF area. He asked that the following items be entered into the record: (1) A copy of Resolution No. 2396 setting the public hearing on the relevant resolutions for 10:00 a.m. December 7, 2007; (2) A copy of each supplemental appropriation resolution being considered today, (3) An affidavit from Carol Smith, Advertising Director of the South Bend Tribune that the Notice of Hearing was published in that newspaper on November 23, 2007; (4) An affidavit from Richard Andrysiak, Classified Manager of the Tri-County News that the Notice of Hearing was published in that newspaper on November 23, 2007. Ms. Jones opened the public hearing for PusLic HEARING oN RESOLUTION No. 2397 whoever wished to be heard. The first resolution being considered is Resolution No. 2397, South Bend Central Development Area. 4 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Ms. Laurent noted that the total TIF appropriation being requested for the South Bend Central Development Area is $8,032,000. This is for debt service, infrastructure projects that we currently have obligation for, support of DTSB, legal and professional fees for real estate development, and items such as Coveleski planning, East Bank planning, major acquisitions outlined in the downtown strategy approved earlier this year and additional development opportunities that may arise. There was no one from the public who wished to speak regarding Resolution No. 2397. (a) Commission approval requested for Resolution No. 2397 a Supplemental appropriation resolution of the Redevelopment Commission (South Bend Central Development Area). Mr. Peczkowski asked why we continue to fund Downtown South Bend at the same level as always. We've been saying that we were going to reduce the city's contribution to this organization. Mr. Inks responded that at this point we don't believe that DTSB is in a position to maintain the same level of services with reduced city funding. We still want to move in that direction, but we're not there at this point. Mr. Peczkowski said he believes the organization has been and continues to be a South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... (a) continued... drain. The checks of their work this year involved more work on our part to make sure the work was being done in a timely fashion. It wasn't getting done without supervision from us. He doesn't trust the organization, how it's being managed, and how funds are spent. Mr. Downes disagreed. He thinks Downtown South Bend has done a terrific job and continues to be an important part of the success of downtown. Mr. King asked about the process for all the appropriation resolutions. Commissioners have spent a lot of time talking about the downtown, but on some of the other areas there hasn't been much Commission discussion, especially regarding the strategy underlying these appropriations. The numbers in the proposed budgets represent policy which may not have been agreed to by all Commissioners. He wondered how to handle such objections. Mr. Downes said that he understood that these resolutions appropriated $8,032,000 for use in the area. The attached budget with its categories and line items is not set in stone by the resolution. The Commission is not stuck with the individual line items. Mr. Inks responded that that is the case. He noted that this is the second year we've used this format. It is a lot more detail than we have 6 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... (a) continued... historically provided. In prior years we approved a lump sum appropriation for general use in the area. These budgets have a lot more detail, but still leave some flexibility to react to opportunities. Mr. Gibney noted that there are items in the budget that are set in stone, such as debt service. Everything else is in a planning process. We are in a process of a three year plan for every one of the TIF areas. All of that will be shared with the Commission as a strategy. Mr. King and Mr. Peczkowski wanted to avoid the scenario where their vote sets in motion planning and expenditures which they don't approved of. Mr. Peterson noted that we're not actually spending money here, we're appropriating it. Contracts will come later. There will be opportunity to vote against individual items as they come onto the agenda for approval. Mr. Gibney noted that staff has included an exhaustive list which it has put together from internal discussions and discussions with other department heads, particularly related to infrastructure. We understand they won't all be done. Mr. Mathia suggested passing the appropriations with notes of reservation for 7 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... (a) continued... the line items Commissioners disagree with. That alerts staff that some Commissioners do have reservations about certain items and warns staff that we need to talk with the Commission before proceeding on those items. Ms. Laurent noted that these appropriations are approval of a revenue stream, not approval of a budget. We have put the budget together as justification for needing this revenue stream, but you are actually only approving the revenue stream. Ms. Jones asked if these budgets are consistent with the long range planning budget the Commission put together last winter. Mr. Inks confirmed that they are. Mr. Peczkowski asked for copies of those financials since he was not present for the discussions. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved Resolution No. 2397, a Supplemental Appropriation Resolution of the South Bend Redevelopment Commission (South Bend Central Development Area) with the reservation of Mr. Peczkowski concerning funding Downtown South Bend, Inc. COMMISSION APPROVED RESOLUTION NO. 2397, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION (SOUTH BEND CENTRAL DEVELOPMENT AREA WITH THE RESERVATION OF MR. PECZKOWSKI CONCERNING FUNDING DOWNTOWN SOUTH BEND, INC. South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) PusLic HEARING oN RESOLUTION No. 2398 A. Public Hearing (1) continued... Public Hearing Resolution No. 2398 The next resolution being considered is Resolution No. 2398, Airport Economic Development Area. Mr. Gibney noted that the appropriation for the Airport Economic Development Area is for more than $27,000,000. He reminded everyone that the AEDA TIF area was expanded south this past year to include the LaSalle Square, the Marycrest/Hurwich area, and the former Sample-Ewing Development Area, so the list of possible expenditures include expenditures in those areas. Again, at the top of the list are investments we must make for such things as debt service. There is also a lot of maintenance of infrastructure. Other items of interest are the demolition of Underground Pipe and Valve, acquisitions related to Portage Prairie, and in the LaSalle Square area, a million dollars for infrastructure improvements and a possible development project, a joint venture with St. Joseph Regional Medical Center and Memorial Hospital for a physicians' clinic on Bendix Drive. Another project which isn't on the budget, but may go forward is a 70+ unit senior housing project along Bendix in LaSalle Square. Ms. Jones asked if there was anyone from the public who wished to speak regarding Resolution No. 2398. 9 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Public Hearing Resolution No. 2398 Marty Wolfson: 809 Park Avenue. I appreciate that the staff has increased the detail related to these appropriations. I also appreciate that they were posted on the Web site. I also appreciate that the appropriation is an initial step and the Commission will have opportunity to say yes or no on specific projects. That's all good. At the same time, it's a little difficult to comment on the budget because we have $19,000,000 going unspecified. I appreciate Jeff s detail about some of those expenditures. One thing that seems to be missing, or perhaps I don't understand where it is in the process, is where the opportunity is for Commissioners to develop the specific strategies for the priorities for public policy. As an opportunity to say yes or no on particular projects in the case, a certain view of public policy and strategy, but it seemed like it would be useful to be one, in terms of the Commission's approach to the TIF areas. In terms of where are our priorities in terms of the Airport. Jeff mentioned Portage Prairie, LaSalle Square, and so forth. Where are the priorities? I think there should be a process for that to happen. And there should be some public input into that process. Having said that, I just want to indicate that, clearly the Community Forum for Economic Development has always viewed LaSalle Square as important as an aspect of TIF. We appreciate the city moving forward with that. Maybe some of the detail for some of the 10 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Public Hearing Resolution No. 2398 commitments that have already been made might have made their way into this. In other words there's a million dollars that Jeff referred to that was indicated from last year. And there was $500,000 at least per year, so we might have put that in to kind of indicate that the commitment, that I'm not questioning, but that might be useful, too. And, one would also indicate how the priorities are being implemented. I see $50,000 for LaSalle Square area planning, $100,000 for the golf course clubhouse design. In this case, it seems like the planning for the clubhouse is twice as important as LaSalle Square. I don't know how to evaluate that. There are some particular items in here that I just want to note, that I think are worthy of funding. The Western Avenue I & M improvements are improvements along the line of the public poles. That was the subject of community discussion and input and I compliment the city for listening to the public and adapting to their point of view and appropriating this money. Of course, the LaSalle Square acquisition and infrastructure improvements, we would certainly support. Project Impact drug training, I think that's a wonderful project that deserves support. Jerry Niezgodski: 2930 Bonds Ave. Do you report to the Council regularly, Ms. Jones? Do you sit in on Council committee meetings? I'm trying to remember if you 11 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Public Hearing Resolution No. 2398 were there when we were speaking about LaSalle Square. Ms. Jones: When asked, we do. I have been to several LaSalle Square Council meetings. Jerry Niezgodski: Also, regarding what Marty said about LaSalle Square. In the committee meetings when the Common Council was talking about adding LaSalle Square into the Airport TIF, it was made very clear by about three or four Council people that they'd let you add these other areas into the TIF as long as LaSalle Square is the first priority. Money should be spent there first and taken care of. I see already we're taking a million dollars for the Western Avenue I & M improvements. Fine. But I' m afraid we're getting at the top of the slope which is going to become very slippery very soon. As I think Mr. Peczkowski and others have mentioned in past meetings, all of a sudden there's this goose with the golden egg and we're going to be using all this money all over the west side. I know the City Council entered into an agreement with AJ Wright for not honoring the agreements of their tax payment. My question is I hope that money they agreed to, which I think is a quarter of a million dollars, is going to meet obligations in that area of what is now the Airport TIF. My concern is that we start taking all this money from the Airport TIF and diverting it elsewhere, without focusing on LaSalle 12 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Public Hearing Resolution No. 2398 Square. As a citizen who was begging, pleading, working with city officials through the years before the Community Forum for Economic Development came onboard to assist us, and as a member of Community Forum for Economic Development, I was involved in the process to get LaSalle Square, to plead our case for inclusion in the Airport TIF. So, I hope that this Commission will follow up and honor the City Council's preference which is to focus on LaSalle Square first. I don't want to see five million dollars here, a million here, half a million here going out of that TIF. It's already been earmarked for LaSalle Square. I don't want to see the TIF being nickel and dimed to the point where LaSalle Square is bypassed. I want the focus to be LaSalle Square. That's right next to the gateway to the city. We need to fix that area up. My other concern is, well not really a concern, but Mr. Gibney has been very good working with us. We look forward to more meetings with them where the neighborhood associations can get involved with the planning process. I think Mr. Gibney outlined the process to us in a meeting a couple of months ago. We were very receptive. We look forward to that and we hope that with the combination of the city and (the Commission) and the City Council we can get something good in LaSalle Square that everybody's going to be happy with. But a word of caution. I don't want to see all this money start flying out of the Airport TIF 13 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Public Hearing Resolution No. 2398 for all the other areas outside of the original Airport area and LaSalle Square area. I want to see that area taken care of first. I'm just cautioning you. It's a slippery slope. I don't want to see us start sliding down it, start giving money everywhere for whatever ails us. We need to come up with a strategy. If there's no strategy, we need to develop one, and we need to stick to it. That's my word of caution and my word of hope for the new year. Thank you. There was no one else who wished to speak regarding Resolution No. 2398. (b) Commission approval requested for Resolution No. 2398 a Supplemental appropriation resolution of the Redevelopment Commission (Airport Economic Development Area). Mr. Inks responded to Mr. Niezgodski's comments. He noted that here is a draft strategy for the Airport Economic Development Area. Staff will be finalizing that over the next several months. The budget put together for the appropriation puts a great deal of deference to the needs of LaSalle Square. The rough internal working budget is for $1,750,000 for 2008. Later on today's agenda the Commission will take its first action of concrete steps to make progress in the LaSalle Square area. The Commission understands the Council's 14 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... (b) continued... concerns and our commitment to the LaSalle Square area and we are addressing those as appropriate. Mr. Gibney noted that he believes in investment based on strategy. The strategy will be presented to the Commission and made available to the public. As part of the strategy approach, we will be considering leverage, public benefit, increase in tax revenue, etc. As director of the Department of Community & Economic Development he promised not to bring any expenditures to the Commission that are not connected to a strategy. Mr. Wolfson asked what role the public will have in the development of the strategy. Mr. Gibney responded that we will be meeting in LaSalle Square for that part of the planning as we did in the Northeast Neighborhood. We'll advertise the meetings and have professional planners to act on our behalf. Mr. King stated that he believes the principal use of TIF funds should be for development and redevelopment in the city we have, and to take care of situations that are currently bad and negatively affect the quality of life within the city, or limit our ability to attract jobs and have the kind of economic and social growth that we want in the city. That underlies his objection to two items listed in the AEDA budget: the interchange 15 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... (b) continued.. environmental study and the interchange design. Mr. King's understanding is that those items have to do with an interchange with the bypass that would serve the Portage Prairie area. It's also Mr. King's understanding that if a prof ect like that were to go forward, it would be aten-to-fifteen million dollar expenditure. If the cost of the study and design are typical, they would cost about ten percent of that, or $1. SM to $2M for a project he is absolutely against. He noted for the record that he is opposed to this project and that he intends to vote against them when they come before the Commission as contracts. Mr. Peczkowski stated again his objection to the inclusion of the LaSalle Square, Hurwich/Nlarycrest area and former Sample- Ewing Development Area into the Airport Economic Development Area. He feels it is too much of a drain on the Airport TIF. Developing priorities for that disparate of an area would be almost impossible. It's like we have the rich brother and the three poorer members of the family who hope to benefit from this trickle-down effect of the TIF funds. How can we decide between improvements to the golf course in comparison to curbs in LaSalle Square. Mr. Gibney responded that that is the job of staff - to debate these issues and come up with a strategy that benefits the entire area. The city has a talented team of people to do that. We 16 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... (b) continued.. will bring our ideas to the Commission for review and approval every two weeks. We are fortunate to have $27M with which to make some of these decisions. Amore difficult problem would be to have no money. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved Resolution No. 2398, a Supplemental Appropriation Resolution of the South Bend Redevelopment Commission (Airport Economic Development Area) noting Mr. King's objection to certain items in the list of possible projects. The next resolution being considered is Resolution No. 2399, West Washington- Chapin Development Area. Mr. Schalliol noted that the appropriation for the West Washington-Chapin Development Area is for $1,200,000. There is no debt service for the West Washington-Chapin area. The Commission does have some commitments to South Bend Heritage Foundation to oversee a lot of the development in this area such as acquisition of property and the Engman Natatorium renovation. Staff expects to create a strategy and project list for the area, including property acquisition, infrastructure and redevelopment. COMMISSION APPROVED RESOLUTION NO. 2398, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION (AIRPORT ECONOMIC DEVELOPMENT AREA PUBLIC HEARING ON RESOLUTION NO.2399 17 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Public Hearing Resolution No. 2399. Mr. Inks noted that the Notice of Hearing indicated the appropriation would be $1,390,000. We have lowered that amount to $1,200,000. Ms. Jones asked if there was anyone from the public who wished to speak regarding Resolution No. 2399. There was no one who wished to speak regarding resolution No. 2399. (c) Commission approval requested for Resolution No. 2399 a Supplemental appropriation resolution of the Redevelopment Commission (West Washington-Chapin Development Area) Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2399 a Supplemental appropriation resolution of the Redevelopment Commission (West Washington-Chapin Development Area) The next resolution being considered is Resolution No. 2400, South Bend Central Development Area, Downtown Medical Services District. Mr. Inks noted that the appropriation for the Downtown Medical Services District is $1,800,000. The Commission has committed to two projects for Memorial Hospital: the relocation of Bartlett Street and restoring the COMMISSION APPROVED RESOLUTION NO. 2399 A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE REDEVELOPMENT COMMISSION (WEST WASHINGTON-CHAPIN DEVELOPMENT AREA PUBLIC HEARING ON RESOLUTION NO.2400 18 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Public Hearing Resolution No. 2400 street grid on the Michigan Street "S-curve" coming into the downtown. Those projects proceed as developments occur at the hospital, so we try to keep the money appropriated at the beginning of the year and ready to be used. However, its use is subject to the time schedule of the hospital as it develops new facilities. We are not sure it will be spent in 2008. Ms. Jones asked if there was anyone from the public who wished to speak regarding Resolution No. 2400. GlendaRae Hernandez: Why do we need to redo the S-curve? Mr. Inks: Part of the development up there is hampered. There are triangular parcels. Restoring the street grid gets back to a more developable site for the hospital's expansion. Mr. Inks noted that all of the increment in the Downtown Medial Services District TIF comes from a taxable hospital property, Navarre Place. 100% of the increment comes from hospital development. Mr. Peczkowski: Is that one of the few taxable properties the hospital has? I recall going through the list. There's not much that's being taxed. 19 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Public Hearing Resolution No. 2400 Mr. Gibney: The Leighton Center for Senior Living is also being taxed. Mr. Peczkowski: Of the new projects coming up, including this demolition of the former Eagles place, is that going to be tax exempt property? Mr. Peterson: It depends on the use. If it's not actually the hospital using it, that may make it taxable. Use for private physician offices is a taxable use. There was no one else who wished to speak regarding Resolution No. 2400. (d) Commission approval requested for Resolution No. 2400 a Supplemental appropriation resolution of the Redevelopment Commission (Downtown Medical Services District) Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2400, a Supplemental Appropriation Resolution of the Redevelopment Commission (Downtown Medical Services District) The next resolution being considered is Resolution No. 2401, Douglas Road Economic Development Area). Mr. Schalliol noted that the appropriation for the Douglas Road Economic Development COMMISSION APPROVED RESOLUTION NO. 2400, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE REDEVELOPMENT COMMISSION (DOWNTOWN MEDICAL SERVICES DISTRICT PUBLIC HEARING ON RESOLUTION NO.2401 20 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Public Hearing Resolution No. 2401 Area is $46,000. It is a small, new development area. We anticipate that money would be used for only one project, an improvement of Douglas Road from S.R. 23 to the Mishawaka city limits, a project that at $46,000 per year would take a long time to pay for. We anticipate more development in that area, causing the increment to accumulate faster. Ms. Jones asked if there was anyone who wished to speak regarding Resolution No. 2401. There was no one who wished to speak. (e) Commission approval requested for Resolution No. 2401 a Supplemental appropriation resolution of the Redevelopment Commission (Douglas Road Economic Development Area). Mr. Peczkowski asked if it was correct that the $46,000 is the beginning of bankrolling for a larger project, or saving for a rainy day. Mr. Schalliol responded that this is the first collection we've had in this development area which was established in 2006. As more projects come on line, as the Memorial building is fully assessed, yes, the money would be bankrolled until such time as a project comes on line. Mr. Peczkowski confirmed, then, that this has nothing to do with the negotiations we 21 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... (e) continued... had with Holladay Corp. about the widening of the road there. Mr. Inks responded that it does not. But both are related to the same potential expense, the widening of Douglas Road. In this case, there may be some minor uses related to the widening of Douglas. Having the money already appropriated makes it available if we need it. Any such expenditure would come to the Commission for approval before being spent. If we wanted to widen Douglas any time in the near future, it would have to be financed because the increment collected could not pay for it. Mr. Peczkowsk asked, then, if this was in any way a response to the difficulty in negotiations we had with Holladay? Mr. Inks responded, no; whether we had concluded those negotiations or not, this money would still need to be appropriated. Mr. King noted that the TIF revenue for this district will grow substantially when the new Memorial building becomes a part of it. Mr. Schalliol agreed. The projection was that it would generate several hundred thousand dollars. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2401, a Supplemental Appropriation Resolution of the Redevelopment Commission (Douglas Road Economic Development Area) 22 COMMISSION APPROVED RESOLUTION NO. 2401, A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE REDEVELOPMENT COMMISSION (DOUGLAS ROAD ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Public Hearing on Resolution No. 2402 The next resolution being considered is Resolution No. 2402, South Side Development Area Allocation Area No. 1. Mr. Schalliol noted that the South Side Development Area Allocation Area No. 1 includes all of the development area except Erskine Village and Erskine Commons. The development in the general area has generated $925,000 in increment, which is the amount to be appropriated today. The anticipated use of this money is for pedevelopment activities such as property acquisition, infrastructure improvements and planning to continue to grow the development area. There was no one who wished to speak regarding Resolution No. 2402. (fJ Commission approval requested for Resolution No. 2402 appropriating tax increment financing revenues from Allocation Area No. 1 fund for the payment of certain obligations and expenses related to the South Side Development Area Allocation Area No. 1. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved Resolution No. 2402 appropriating tax increment financing PUBLIC HEARING ON RESOLUTION N0.2402 COMMISSION APPROVED RESOLUTION NO. 2402 APPROPRIATING TAX INCREMENT FINANCING REVENUES FROM THE ALLOCATION UREA NO. 1 FUND FOR THE PAYMENT OF CERTAIN 23 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... (fJ continued... revenues from the Allocation Area No. 1 fund for the payment of certain obligations and expenses related to the South Side Development Area Allocation Area No. 1. The next resolution being considered is Resolution No. 2403, South Side Development Area Allocation Area No. 2 Mr. Inks noted that this is the Erskine Commons allocation area. There are two pieces of outstanding debt in the area. One is a senior TIF revenue bond of $2,440,000. The structure on that debt currently calls for interest only payments. The Trustee has an account with capitalized interest from the bond issue that is sufficient to cover all the interest payments through 2008. In 2009 the appropriation we will come back with will include a request for interest on that debt. Mr. Inks noted that there is also a junior Economic Development bond with a payment of $140,000 due in August. The amount listed in the Notice of Hearing was $206,000. We would like to revise down the allocation to the actual payment that is due, $140,000. Ms. Jones asked if anyone wished to speak regarding Resolution No. 2403. There was no one who wished to speak. OBLIGATIONS AND EXPENSES RELATED TO THE SOUTH SIDE DEVELOPMENT AREA ALLOCATION AREA NO. 1. PUBLIC HEARING ON RESOLUTION No.2403 24 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... (g) Commission approval requested for Resolution No. 2403 appropriating tax increment financing revenues from the Allocation Area No. 2 fund for the payment of certain obligations and expenses related to the South Side Development Area Allocation Area No. 2. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2403 appropriating tax increment financing revenues from the Allocation Area No. 2 fund for the payment of certain obligations and expenses related to the South Side Development Area Allocation Area No. 2. The next resolution being considered is Resolution No. 2406, South Side Development Area Allocation Area No. 3. Mr. Inks noted that Allocation Area No. 3 has one piece of debt outstanding, an Economic Development bond. The terms of that bond require us to pay to the Trustee on an annual basis all of the TIF revenues collected in the area. We anticipate that in 2008 the area will generate $800,000. We request that full amount be appropriated so that it may be paid to the Trustee under the terms of the bond issue. Ms. Jones asked if there was anyone who wished to speak regarding Resolution No. 2406 There was no one who wished to speak. Ms. Jones closed the public hearing on the TIF resolutions. COMMISSION APPROVED RESOLUTION NO. 2403 APPROPRIATING TAX INCREMENT FINANCING REVENUES FROM THE ALLOCATION UREA NO.2 FUND FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THE SOUTH SIDE DEVELOPMENT UREA ALLOCATION UREA NO.2 PUBLIC HEARING ON RESOLUTION N02406 PUBLIC HEARING ON RESOLUTION NO.2406 25 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... (h) Commission approval requested for Resolution No. 2406 appropriating tax increment financing revenues from Allocation Area No. 3 fund for the payment of certain obligations and expenses related to the South Side Development Area Allocation Area No. 3. Mr. Peczkowski asked if the $800,000 was interest only. Mr. Inks responded that this is the first year we are paying on the principle. Mr. Peterson noted that this is a taxable bond. We give all the money to the Trustee who provided security for the bond. When there is enough money to entirely pay off the bond, it will be paid off. Until then the Trustee invests it. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved Resolution No. 2406 appropriating tax increment financing revenues from Allocation Area No. 3 fund for the payment of certain obligations and expenses related to the South Side Development Area Allocation Area No. 3 (2) Public Hearing on Resolution No. 2404 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2008 and ending December 31, 2008, including all outstanding claims and obligations, fixing a time when the same shall take effect. COMMISSION APPROVED RESOLUTION NO. 2406 APPROPRIATING TAX INCREMENT FINANCING REVENUES FROM ALLOCATION AREA NO. 3 FUND FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THE SOUTH SIDE DEVELOPMENT AREA ALLOCATION AREA No. 3 26 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (2) continued... (Fund 425, Leighton Retail Space and Courtyard) Mr. Inks noted that the public hearing file is complete, containing: (1) A copy of Resolution No. 2404 setting the public hearing on the relevant resolutions for 10:00 a. m. December 7, 2007; (2) An affidavit from Carol Smith, Advertising Director of the South Bend Tribune that the Notice of Hearing was published in that newspaper on November 23, 2007; (43 An affidavit from Richard Andrysiak, Classified Manager of the Tri-County News that the Notice of Hearing was published in that newspaper on November 23, 2007. Mr. Inks noted that this is for the Leighton Retail Space and Courtyard along with the Wayne Street Garage retail space. Ms. Jennings noted that the retail space is currently 100% leased. The total appropriation requested is $156,621 for the 2008 fiscal year. The purpose of Fund 425 is to defray the expenses of keeping the retail spaces in good condition, including management fees, administrative expenses, trash and snow removal, repairs, taxes, etc. Staff has carefully reviewed these expenses and recommends approval. Ms. Jones opened the public hearing on PusLic HEARING oN RESOLUTION No. 2404 Resolution No. 2404 for anyone who wished to speak. There was no one who wished to speak. Ms. Jones closed the public hearing 27 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (2) continued... on Resolution No. 2404. Jerry Niezgodski: The Leighton Retail Space, is this on Michigan Street? Ms. Jones: Yes. Jerry Niezgodski: So is any of this money going to defray LePeeps... it says administrative and other fees; is this part of the money that's going to defray their... Cathy Catlin: CB Richard Ellis. This is the budget for 2008. That expense was in 2007. Mr. Peczkowski: The $21,000 that we wrote off as forgiven debt, that was last year's budget? Mr. Inks: Yes. There was no one else to speak regarding Resolution No. 2404. Ms. Jones closed the public hearing for whatever action the Commission wished to take. (3) Commission approval requested for Resolution No. 2404. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2404 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2008 and ending December 31, COMMISSION APPROVED RESOLUTION NO. 2404 APPROPRIATING MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2008 AND ENDING DECEMBER 31, 2008, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT. (FUND 425, LEIGHTON RETAIL SPACE AND COURTYARD 28 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (3) continued... 2008, including all outstanding claims and obligations, fixing a time when the same shall take effect. (Fund 425, Leighton Retail Space and Courtyard) (4) Public Hearing on Resolution No. 2405 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2008 and ending December 31, 2008, including all outstanding claims and obligations, fixing a time when the same shall take effect. (Blackthorn Golf Course) Mr. Inks noted that the public hearing file is complete, containing: (1) A copy of Resolution No. 2405 setting the public hearing on the relevant resolutions for 10:00 a. m. December 7, 2007; (2) An affidavit from Carol Smith, Advertising Director of the South Bend Tribune that the Notice of Hearing was published in that newspaper on November 23, 2007; (43 An affidavit from Richard Andrysiak, Classified Manager of the Tri-County News that the Notice of Hearing was published in that newspaper on November 23, 2007. Mr. Witwer noted that on December 3, 2007 the Blackthorn Joint Committee of the Redevelopment Commission and Airport Authority approved this budget and referred it to the Commission for its approval. There is one change to the last page, Capital Projects. $75,000 was listed under TIF. That 29 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (4) continued... was an error. Ms. Jones opened the public hearing on PusLic HEARING oN RESOLUTION No. 2405 Resolution No. 2405 for anyone who wished to speak. There was no one who wished to speak. Ms. Jones closed the public hearing on Resolution No. 2405. (5) Commission approval requested for Resolution No. 2405. Mr. Peczkowski noted that it appears the pro shop is a drain on the course as whole. It doesn't seem to be pulling its weight. Concessions are doing very well. He asked what the strategy is to address the pro shop's losing money. Rick Reid, General Manager of Blackthorn Golf Course, said they have taken measures to increase their margins in the pro shop. They instituted C1ubFest, a large merchandise sale. Bobicks discontinued its Tent Sale. Blackthorn felt it could capitalize on that additional market for merchandise. This was the first year for Club Fest. They think they can do better with it next year. Also, the outings business has been very competitive this year. Country clubs have taken some of Blackthorn's business. They have used the merchandise prizes as a loss leader. Mr. Peczkowski noted the increased course fees. He asked if that was for both residential and non residential. Mr. Reid responded that Blackthorn has kept rates flat for the last three years while expenses have 30 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (5) continued... gone up. They need to raise them. They are being raised $1 for residents of St. Joseph County and $2 for non residents. Mr. Peczkowski asked if it is perceived that a pro shop is necessary at any golf course, especially since the Internet is now a competitor. Mr. Reid responded that they have lost $200,000 of revenue because they don't have an indoor controlled environment in the clubhouse. They refer customers to the Blue Heron for that type of business, but people prefer a place where they can play golf and have an eating event without getting in their cars to go to an eating venue. DLZ took its outing to Morris Park for that reason. Blackthorn needs to upgrade its clubhouse to keep up with the competition. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved Resolution No. 2405 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2008 and ending December 31, 2008, including all outstanding claims and obligations, fixing a time when the same shall take effect. (Blackthorn Golf Course) Mr. King noted that last year the Commission asked Blackthorn to establish a sinking fund to pay for future capital improvements and they have done that, using their own funds instead of TIF funds. There was comment earlier about deciding whether COMMISSION APPROVED RESOLUTION NO. 2405 APPROPRIATING MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2008 AND ENDING DECEMBER 31, 2008, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT. (BLACKTHORN GOLF COURSE 31 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) A. Public Hearing (5) continued... to pay for bunkers at the golf course or curbs and sidewalks. The golf course's move to pay for capital improvements out of its own funds means we don't have to make those decisions. He commended the managers there for making those changes. It is a very business-like way for them to operate. B. Tax Abatements (1) Commission approval requested for Resolution No. 2415 approving an application for real property tax deduction in the Northeast Neighborhood Development Area. (918 N. St. Peter) Mr. Mathia gave the staff report on the residential tax abatement. Brian and Allison Levey intend to construct a 2,200 square foot, 2-story home with a three car garage. Plans call for the home to have three bedrooms, three bathrooms and an open front porch, stone patio and a full finished basement. The structure that is currently on the property will be demolished. The price of the home is $325,000. Total taxes to be abated during the five-year abatement period are estimated at $10,262. Total taxes to be paid during the five-year abatement period are estimated to be $23,760. The property is properly zoned for the proposed use. The property is located in the Northeast Neighborhood Development Area, therefore approval of the abatement petition by the Redevelopment Commission is required. The project qualifies for five years of residential 32 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) B. Tax Abatements (1) continued... tax abatement under the tax abatement ordinance. Mr. Downes made a motion to approve Resolution No. 2415 approving an application for real tax property tax deduction for property located at 918 N. St. Peter in the Northeast Neighborhood Development Area. Mr. Blake seconded the motion. The motion carried on a vote of four to one with Mr. Peczkowski opposed. C. Housing (1) Commission approval requested for Loan and Grant in connection with the South Bend Home Improvement Loan Program for property located at 539 Riverside Drive. (Michelle and Gilbert Gadia) Mr. Inks noted that the loan is in the amount of $7,700 and the grant is in the amount of $7,559.57. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the loan and grant related to the South Bend Home Improvement Program for property located at 539 Riverside Drive. (Michelle and Gilbert Gadia) D. South Bend Central Development Area (1) Commission approval requested for Resolution No. 2407 related to acquisition COMMISSION APPROVED RESOLUTION NO. 2415 APPROVING AN APPLICATION FOR REAL TAX PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 918 N. ST. PETER IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. (918 N. ST. PETER COMMISSION APPROVED THE LOAN AND GRANT RELATED TO THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 539 RIVERSIDE DRIVE. (MICHELLE AND GILBERT GADIA~ 33 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (1) continued... of property in the South Bend Central Development Area. (Cleo Washington) Mr. Schalliol noted that Resolution No. 2407 and 2416 are related to acquisition of property located at 520 W. Wayne Street in the South Bend Central Development Area and the Coveleski neighborhood planning area. Resolution No. 2407 sets the acquisition value for these five parcels. Value of the single family house and five parcels of vacant land is established at $84,250. Mr. Peczkowski asked Mr. King if he was comfortable making a decision on this acquisition since the Commission received the information late. Mr. King said he recognized that negotiations like this one are difficult. He would personally be more comfortable having the HOK study findings in hand and having a vision for the entire neighborhood. When this was first presented on November 2"d there were a lot of public attending. We said we would have a study and know what we are doing with the whole neighborhood before moving on any of the acquisitions. However, he said he also recognized the need to buy while a seller is willing to sell. Mr. Downes made a motion to approve Resolution No. 2407 related to acquisition of property in the South Bend Central Development Area. (520 W. Wayne). The motion was seconded by Mr. Blake. The motion carried on a vote of four to one with Mr. Peczkowski opposed. COMMISSION APPROVED RESOLUTION NO. 2407 RELATED TO ACQUISITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (520 W. WAYNE) 34 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (2) Commission approval requested for Resolution No. 2416 approving and accepting a counter offer for the acquisition of property in the South Bend Central Development Area. (520 W. Wayne) Mr. Schalliol noted that Resolution No. 2416 accepts a counter for 520 W. Wayne. After intense negotiations with the property owner concerning the appraised value and the type of appraisals that were done on the property. The property was appraised as a single family residence, although for several years it has been used as a law and business office. A counter offer of $96,000 was proposed by the property owner. The property owner has obtained an appraisal for his property. There will be no relocation and moving expenses added to the agreed price. This property is located north of Western Avenue in the Coveleski neighborhood planning area and in the block where we anticipate the opportunity for some new infill single-family residential units. It has some property that could be subdivided for more than one structure. This property could be the beginning of the Coveleski Neighborhood Project, which could really start developing in the next several weeks. Mr. Downes made a motion to approve Resolution No. 2416 approving and accepting a counter offer for acquisition of property in the South Bend Central Development Area. Mr. Blake seconded the motion. The motion was approved on a vote of four to one with Mr. Peczkowski opposed COMMISSION APPROVED RESOLUTION NO. 2416 APPROVING AND ACCEPTING A COUNTER OFFER FOR ACQUISITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (520 W. WAYNE~ 35 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (3) Commission approval requested for proposal for asbestos and lead based paint inspection in the South Bend Central Development Area. (332 W. Jefferson) Mr. Mathia noted that Quality Environmental Professionals, Inc. has submitted a proposal to inspect property located at 332 W. Jefferson for lead and asbestos. That property was placed on the acquisition list for the South Bend Central Development Area. QEPI completed a Phase 1 environmental site assessment this fall on the property. The proposed inspection is a follow-up that was recommended. Our plan is to demolish the building. An inspection is required prior to demolition. The Phase 1 assessment was funded by an EPA grant administered by Ann Kolata of the Division of Economic Development. There is no money left in the grant to fund this inspection. Since QEPI did the first inspection no other firm was asked to submit a proposal. The inspection will cost $6,361 and the funds will come out of the South Bend Central Development Area budget. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved the request for proposal for asbestos and lead based paint inspection. (332 W. Jefferson) (4) Commission approval requested for Resolution No. 2420 approving and accepting a counter offer for the acquisition of property in the South Bend Central Development Area. (Fat Daddy's) COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR ASBESTOS AND LEAD BASED PAINT INSPECTION. (332 W. JEFFERSON 36 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (4) continued... Ms. Laurent noted that on October 19 the Commission had authorized a purchase offer to be sent to Elaine Gendle, owner of Fat Daddy's Outlet. Resolution No. 2385 set the offering price at $101, 500. A negotiated counter offer has been received in the amount of $150,000 plus payment of outstanding real estate taxes totaling $11,882, and penalties and pro-rated taxes due of approximately the same amount. The total of the counter offer, then, would be approximately $175,000. The seller would be responsible for any real estate commissions. Staff feels this counter offer is justified in that it includes appropriate consideration of the expense of relocation of the assets of the existing business on the premises. Staff has been provided documentation of the marketability of second floor space in this area, existing square footage that was not considered by the appraisers in determining the fair reuse value. We hope the reuse of the building or the site will provide viable second floor space and bring density back to the south end of downtown. There will be a phase one environmental assessment and then the closing. The property will be vacated by May 2008. Mr. King thanked Ms. Laurent for a great job on this project in a short amount of time. Ms. Laurent wanted to thank Mr. Bob Hunt, our former Commissioner who longed to see this property revitalized. 37 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (4) continued... Mr. King made a motion to approve Resolution No. 2420 approving and accepting a counter offer for acquisition of property in the South Bend Central Development Area. (Fat Daddy's), Mr. Downes seconded the motion. The motion carried on a vote of four to one with Mr. Peczkowski opposed. (5) Commission approval requested for Authorization for Entry Upon and the Temporary Use of Public Property Located within the South Bend Central Development Area. (NW St. Joseph/Jefferson) Ms. Laurent noted that REI Investments would like access to the St. Joe and Jefferson site to do soil boring analysis and pedevelopment work before beginning construction on their hotel project. Staff recommends approving the request. Upon a motion from Mr. Downes, seconded by Mr. Blake, and unanimously carried, the Commission approved the Authorization for Entry Upon and the Temporary Use of Public Property located within the South Bend Central Development Area. (6) Commission approval requested for Purchase Agreement By and Between South Bend Redevelopment Commission and Foster A. Martin and Linda L. Martin dated December 7, 2007. (Beebe Cabinet) COMMISSION APPROVED RESOLUTION NO. 2420 APPROVING AND ACCEPTING A COUNTER OFFER FOR ACQUISITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (FAT DADDY's) COMMISSION APPROVED THE AUTHORIZATION FOR ENTRY UPON AND THE TEMPORARY USE OF PUBLIC PROPERTY LOCATED WITHIN THE SOUTH BEND CENTRAL DEVELOPMENT AREA 38 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (6) continued... Ms. Laurent noted that on November 2 the Commission approved the terms of this contract with the owners of the Beebe Cabinet property. The only significant change was to improve the environmental indemnification language to adequately protect the Commission. The purchase price remains the same, as well as all other terms. Mr. Downes made a motion to approve the Purchase Agreement by and between South Bend Redevelopment Commission and Foster A Martin and Linda L. Martin. Mr. King seconded the motion. The motion carried on a vote of four to one with Mr. Peczkowski opposed. E. Airport Economic Development Area (1) Commission approval requested for Resolution No. 2412 related to acquisition of property in the Airport Economic Development Area. (1406 S. Franklin, Eckler-Lahey) Item 6.E.(1) was tabled. (2) Commission approval requested for Resolution No. 2413 approving and accepting a counter offer for the acquisition of property in the Airport Economic Development Area. (1406 S. Franklin, Eckler Lahey) Item 6.E.(2) was tabled. COMMISSION APPROVED THE REQUEST FOR PURCHASE AGREEMENT BY AND BETWEEN SOUTH BEND REDEVELOPMENT COMMISSION AND FOSTER A. MARTIN AND LINDA L. MARTIN. ITEM 6.E.(1) WAS TABLED ITEM 6.E.(2) WAS TABLED 39 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (3) Commission approval requested for Resolution No. 2417 approving the Addendum to the Agreement for the transfer of real property from the City of South Bend, Indiana Redevelopment Commission. (Transpo) Ms. Kolata noted that the property involved is in the area of the former stamping plant along Franklin Street in the Studebaker Corridor. Our original agreement with Transpo was to sell the entire site for $1M and they would build their new bus maintenance facility and offices on that site. Transpo would then lease back the remaining acreage to the Commission. Transpo would use about 12 acres. The Commission would then pay $200,000 a year for twenty years adding up to the $4M price. They have now asked for almost eight acres of additional land. This addendum allows them to purchase the 7+ acres of land for about $245,000. The rest of the transaction remains the same. Transpo will close on the property before spring and begin construction on their new building. The City will construct approximately $1.6M worth of roads and utility infrastructure before the end of 2008 to assist the project. Mr. King asked if the reduced space left for the City is adequate for the vision we had for the area. Ms. Kolata said it was. Because Transpo is paying a full price for the land we will not lose income. The acreage we list as available will not really be available until the roads are put in. We will still have 40-50 acres of land available for development. We 40 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (3) continued... have designed the parcels into square parcels, which could be combined making them easier to sell. Mr. Peczkowski asked why we were leasing the property back from Transpo rather than just selling them what they need. Ms. Kolata said the transaction was complicated. Transpo had some additional funding that they could contribute to the project, which , under this arrangement, they will get back in a form that will go toward operating subsidies over a period of years. That will enable them to keep their fares lower. With the competitive terms of the lease, Transpo is basically providing us a more attractive financial situation-the financial equivalent of an interest free loan--for 20 years and we are providing the first 12 acres at no cost to them. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved Resolution No. 2417 approving an Addendum to the Agreement for the transfer of real property from the City of South Bend, Indiana Redevelopment Commission. (Transpo) (4) Commission approval requested for Resolution No. 2418 related to acquisition of property in the Airport Economic Development Area. (River of Life Church) Mr. Witwer said Resolution No. 2418 sets the offering price for the River of Life COMMISSION APPROVED RESOLUTION NO. 2417 APPROVING AN ADDENDUM TO THE AGREEMENT FOR THE TRANSFER OF REAL PROPERTY FROM THE CITY OF SOUTH BEND, INDIANA REDEVELOPMENT COMMISSION. (TRANSPO~ 41 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (4) continued... Church at $214,450 and authorizes sending a purchase offer for that amount. This is the first process of committing to the LaSalle Park Neighborhood. Mr. Downes made a motion to approve Resolution No. 2418 related to the acquisition of property in the Airport Economic Development Area. Mr. King seconded the motion. The motion carried on a vote of four in favor. Mr. Peczkowski abstained. (5) Commission approval requested for Resolution No. 2419 approving and accepting a counter offer for the acquisition of property in the AEDA (River of Life Church) River of Life has obtained an appraisal of its own and has had the property listed on the market for $270,000. They have submitted a counter offer in the amount of $250,000. Resolution No. 2419 accepts the counter offer in that amount. Mr. Downes made a motion to approve Resolution No. 2419 approving and accepting a counter offer for the acquisition of property in the AEDA Mr. King seconded the motion. The motion carried on a vote of four in favor. Mr. Peczkowski abstained. COMMISSION APPROVED RESOLUTION NO. 2418 RELATED TO THE ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT UREA COMMISSION APPROVED RESOLUTION NO. 2419 APPROVING AND ACCEPTING A COUNTER OFFER FOR THE ACQUISITION OF PROPERTY IN THE AEDA 42 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) E. Airport Economic Development Area (6) Commission approval requested for Sprinkler Maintenance and Winterization in the Blackthorn Corporate Park. Ms. Jennings stated the cost for the sprinkler maintenance and winterization is $555 for the following properties: Bendix Drive, East Washington, Dean Johnson Parkway and Fellows St. The total cost does not include charges for repairs and parts for sprinkler maintenance. Upon a motion by Mr. Downes, seconded by Mr. Blake, and unanimously carried, the Commission approved the request for sprinkler maintenance and winterization in the Blackthorn Corporate Park. F. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. G. South Side Development Area There was no business in the South Side Development Area. H. Northeast Neighborhood Development Area (1) Commission approval requested for Resolution No. 2408 related to acquisition of property in the Northeast Neighborhood Development Area. (1106 Burns) Mr. Schalliol said the property at 1106 Burns was appraised by two qualified appraisers. COMMISSION APPROVED THE REQUEST FOR SPRINKLER MAINTENANCE AND WINTERIZATION IN THE BLACKTHORN CORPORATE PARK 43 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) H. Northeast Neighborhood Development Area (1) continued... The average of the two appraisals was $55,000. This value is for asingle-family occupied house and one parcel of land. Resolution No. 2408 sets the offering price at $55,000 and authorizes a purchase offer to be sent. Upon a motion by Mr. King, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2408 related to acquisition of property in the Northeast Neighborhood Development Area. (1106 Burns) (2) Commission approval requested for Resolution No. 2409 approving and accepting a counter offer for the acquisition of property in the Northeast Neighborhood Development Area. (1106 Burns) Mr. Schalliol stated staff has negotiated a counter offer for 1106 Burns in the amount of $107,000 plus moving expenses not to exceed $3,000. This property is a key element within the Phase I area of the Triangle redevelopment area. As part of Resolution No. 2409 there is an Assignment of Interest in the purchase agreement. The Redevelopment Commission served as the acquisition partner and did the negotiations for the Northeast Neighborhood Revitalization Organization. The assignment needs to be transferred to the Redevelopment Commission so that the Commission can close on the property. COMMISSION APPROVED RESOLUTION NO. 2408 RELATED TO ACQUISITION OF PROPERTY IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. (1106 BURNS 44 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) H. Northeast Neighborhood Development Area (2) continued... Upon a motion by Mr. King, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2409 approving and accepting a counter offer of $107,000 plus moving expenses not to exceed $3,000 for acquisition of property in the Northeast Neighborhood Development Area. (1106 Burns) (3) Filing of Resolution No. 2414 amending the Northeast Neighborhood Development Area Development Plan (acquisition list) Mr. Schalliol explained this is a staff request to set a public hearing on Resolution No. 2414 for 10:00 a.m., Wednesday, January 2, 2008 at the Redevelopment Commission's rescheduled regular meeting. This resolution will add three properties to the Northeast Neighborhood Development Area acquisition list. The properties are along State Road 23 where Napoleon would intersect with State Road 23. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission accepted for filing Resolution No. 2414 and set a public hearing on Resolution No. 2414 for 10:00 a.m., December 21, 2007. I. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. COMMISSION APPROVED RESOLUTION NO. 2409 APPROVING AND ACCEPTING A COUNTER OFFER OF $107,000 PLUS MOVING EXPENSES NOT TO EXCEED $3,000 FOR ACQUISITION OF PROPERTY IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. (1106 BURNS COMMISSION ACCEPTED FOR FILING RESOLUTION No. 2414 AND sET A PUBLIC HEARING ON RESOLUTION NO. 2414 FOR 10:00 A.M., DECEMBER 21, 2007 45 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 6. NEW BUSINESS (CONT.) J. Other (1) Commission approval requested for First Addendum to Agreement for Programs and Services with Urban Enterprise Association of South Bend, Inc. (Facade Matching Grant Program, Miami Street Corridor) On August 17, 2007 the Redevelopment Commission approved an agreement with the Urban Enterprise Association to administer its Facade Matching Grant Program for Miami Street Corridor. The addendum today adds $8, 423 to the previously approved $20,000. It will be used to fund additional grants along Miami Street. Mr. Divita said the matching grant program has been very successful. The addendum does not change any other terms of the agreement. The $8,423. comes from savings realized on other City projects along the corridor. Mr. Downes asked if the UEA handled similar programs on other corridors. Mr. Divita said Western Avenue and Mishawaka Avenue are also serviced by the UEA. Upon a motion by Mr. King, seconded by Mr. Downes, and unanimously carried, the Commission approved the First Addendum to Agreement for Programs and Services with Urban Enterprise Association of South Bend, Inc. 7. PROGRESS REPORTS There was no report. COMMISSION APPROVED THE FIRST ADDENDUM TO AGREEMENT FOR PROGRAMS AND SERVICES WITH URBAN ENTERPRISE ASSOCIATION OF SOUTH BEND, INC. PROGRESS REPORTS 46 South Bend Redevelopment Commission Regular Meeting -December 7, 2007 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEET~G scheduled for Friday, December 21, 2007 at 10:00 a. m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, the meeting was adjourned at 11:50 a.m. .~~ ~ ~ ~ ~~ D~~~:~~..int~; L~ire~.tbr. ~ ~ )~+Iar~~a I. James, Frei EXECUTIVE SESSION December 7, 2007 The South Bend Redevelopment Commission met in Executive Session on Friday, December 7, 2007 at 9:15 a.m. The meeting was held in Room 1200 County-City Building, 227 West Jefferson, South Bend, Indiana, for the purposes specified in LC. 5-14-1.5-61(b)(2)(D). Commissioner's Present: Marcia Jones, President; Karl King, Vice President; Greg Downes, Secretary; Hardie Blake, Ken Peczkowski. Others Present: Jeff Gibney, Executive Director, Community & Economic Development, Don Inks, Director, Economic Development, Shawn Peterson, Bill Schalliol, Nick Witwer, Jennifer Laurent, Ann Kolata, and Robert Mathia. The Commission certifies that no topic was discussed other than the subject matter specified in the Public Notice. The Executive Session was adjourned at 10:00 a.m. CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT 7,,~,~ ~ T. .. ~. ~1"iGirG~.ir V~~e~. ,~L~lt. .. . ~~ ~ .... South Bend Redevelopment Commission 47