Loading...
HomeMy WebLinkAbout2 MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING November 22, 2011 4:00 p.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Donald Alford Members Absent: Mr. Greg Downes Ms. Stephanie Spivey Legal Counsel: Mr. Charles S. Leone, Esq. Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. David Relos, Economic Development Specialist Mr. Matthew Sikora, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mr. Tom Price, Mayor's Office Mr. Jeff Gibney, Executive Director Ms. Rita Kopala Ms. Mo Miller Ms. Elicia Feasel Mr. Jim Bognar Mr. Marco Mariani, Downtown South Bend Mr. Allert Brown -Gort, Notre Dame Center for Latino Studies Mr. Kevin Smith, Union Station Mr. Greg Kil Mr. Shane Fimbel Mr. Doug Frauson Mr. David Morrissey Ms. Patti Lesniewicz, Economic Development 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Tuesday, November 8, 2011. South Bend Redevelopment Commission Regular Meeting — November 22, 2011 Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Tuesday, November 8, 2011. Mr. Inks noted for the record that staff added one item to the agenda today — 6. G.(7), an engagement letter from the Business Development Corporation. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF TUESDAY, NOVEMBER 8, 2011. Redevelopment Commission Claims submitted November 22, 2011 for approval. Redevelopment Commission Claims submitted November 22, 2011 for approval 305 FUND SBCDA BOND ARC 107.52 Century Center Island Park Canopy 324 AIRPORT AEDA Hydroseed Inc. 4,131.80 Seed Fertilize Voorde Pk Rugby Fields Weaver Boos Consultants 16,682.55 Studebaker Area A Demolition - Ph IV DLZ 945.00 Underground Pipe and Vale Demolition NIPSCO 30.00 329 S Lafayette Blvd IDEM 133.25 Debit collection Wells Fargo 400.00 Agent Fee McGuire, Craddock & Strother 1,834.75 Professional Services Rendered TIC United Meridian Title Corporation 65,753.28 1528 S Kemble Ave Rose Innovation Park 498.33 Monthly Office Space Rental Hull & Associates, Inc. 2,837.95 Extended general Consulting services C &E Excavating 494,604.84 Mayflower Rd Sanitary Sewer Extension ADG 3,500.00 Pedestrian Bridge ADG 5,760.00 Prairie Salvage Relocation Wightman Petrie 1,700.00 Phase I ESA St. Vincent De Paul Facility Hull & Associates, Inc 6,401.25 Oliver Industrial Park Area C Hull & Associates, Inc 1,892.50 Lot 4 Studebaker NSRR Indiana Michigan Power 7.00 501 Wenger St. 420 FUND TIF DISTRICT - SBCDA GENERAL Ampco System Parking 2,023.03 Michiana Lock & Key, Inc. 7.50 Kil Architecture Planning 3,228.50 Daktronics 7,475.00 Indiana Michigan Power 7.74 Rose Pest Solutions 99.00 Brown & Brown General Contract 84,015.40 DTSB 14,375.00 2 325 S Lafayette Blvd 325 Lafayette East Bank Village Scoreboard for Coveleski 755 S Michigan St. LaSalle Hotel Pest Control Contract Morris PAC Renovations Beautification Program South Bend Redevelopment Commission Regular Meeting — November 22, 2011 422 TIF DISTRICT WEST WASHINGTON Meridian Title 441,011.35 803 W Washington 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA #1 Ralph E. and Sharon S. Mink 50,700.00 Main St./Lafayette Blvd Connector Ralph E. and Sharon S. Mink 13,800.00 Main St./Lafayette Blvd Connector Ralph E. and Sharon S. Mink 29,165.00 Main St./Lafayette Blvd connector $ 1,253,127.54 Upon a motion by Mr. Varner, seconded by Ms. King and unanimously carried, the Commission approved the Claims submitted November 22, 2011, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS A. South Bend Central Development Area (1) Resolution No. 2952 confirming a resolution amending the Development Plan for the South Bend Central Development Area and adding one or more parcels to the List of Parcels to be Acquired. Mr. Inks noted that staff would like this item tabled until December 13, 2011, to add the site, known as the Wharf site, to the acquisition list. Mr. Inks spoke to the new owners of the property and they would like additional time to consider whether they want the Commission to acquire their property. COMMISSION APPROVED THE CLAIMS SUBMITTED NOVEMBER 22, 201 1, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS Upon a motion by Ms. King, seconded by COMMISSION TABLED RESOLUTION No. 2952 Mr. Varner and unanimously carried, the UNTIL THE DECEMBER 13, 2011 MEETING Commission tabled Resolution No. 2952 South Bend Redevelopment Commission Regular Meeting — November 22, 2011 until the December 13, 2011 meeting. B. South Side Development Area (1) Resolution No. 2953 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Main - Lafayette Connector Design Project — Supplement #3). Mr. Schalliol noted that Supplement #3 covers additional costs resulting from removal of the roundabout for the Main/Lafayette Connector plan, as well as additional acquisition of the U.S. Post Office, the Cinemark Movie Theater complex, Caroline Partners properties, Carl Kay Memorials, the Sears store and drainage design for the southeast corner of the intersection of Barbie and Michigan. The project is well underway with parcel appraisals and early stages of right -of -way acquisition, and it is anticipated that we will begin acquisition within the next month. Mr. Schalliol noted that the Board of Public Works approved this Agency Agreement at its meeting on November 21. The proposal amount for Supplement #3 is $260,320. This will be the final change order for this project. Mr. Schalliol summarized the previous contract amounts for this project: Original Contract: $ 436,000.00 (design services) Supplement # 1: $ 439,000.00 (acquisition services) Supplement #2: $ 18,900.00 4 South Bend Redevelopment Commission Regular Meeting November 22, 2011 (relocation services) Supplement #3: $ 260,320.00 Total: $ 1,154,220.00 Mr. Varner asked if construction would begin this fall. Mr. Schalliol responded that he hopes to put the project out for bid late fall or early spring depending on when the right -of- way acquisition is complete. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2953 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Main- Lafayette Connector Design Project — Supplement #3). (2) Resolution No. 2954 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Main - Lafayette Connector Design Project — Supplement #4). Mr. Schalliol noted that Resolution No. 2954 adds funding to cover the right-of-way acquisition needed for the Main - Lafayette Connector project. There are three total acquisitions (two residential and one commercial), several partial, permanent and temporary acquisitions. The budget estimate for the acquisitions is $1,225,000. Staff is requesting approval of only $1,000,000 and will present an update and a supplemental budget request later, if needed. Staff requests approval of Resolution No. 2954 Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2954 COMMISSION APPROVED RESOLUTION NO. 2953 APPROVING AND AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT (MAIN - LAFAYETTE CONNECTOR DESIGN PROJECT - SUPPLEMENT #3). COMMISSION APPROVED RESOLUTION NO. 2954 APPROVING AND AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT (MAIN- South Bend Redevelopment Commission Regular Meeting — November 22, 2011 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Main- Lafayette Connector Design Project — Supplement #4). 6. NEW BUSINESS A. South Bend Central Development Area Mr. Schalliol explained item 6.A.(1) and 6.B.(1) together as they are both related to the same project. He asked that Item 6.B.(1) be moved up on the agenda to follow 6.A.(I) There was no objection and the item was so moved. (1) Proposal for professional services related to Union Station (Master planning and street vacation). Mr. Schalliol noted that this project has many components, involving several other properties. To enable the project to move forward staff has solicited a proposal from Wightman Petrie to do master planning related to the overall project and perform street vacation services for the various properties involved: Union Station, Ivy Tower and Millennium Environmental. The planning area encompasses an area bounded by South Street on the north, Lafayette Boulevard on the east, Sample on the south, and Scott Street on the west. The master planning will look at the impact of this project on traffic circulation, building density development, site constraints, and other general conditions of the project area. The planning proposal will allow the team to model various scenarios and to look at the big picture effects of the decision making process. The proposal amount for the master plan is $11,150. The street vacation proposal is to perform the 2 LAFAYETTE CONNECTOR DESIGN PROJECT - SUPPLEMENT #4). South Bend Redevelopment Commission Regular Meeting — November 22, 2011 various steps necessary to vacate a section of United Drive from the intersection of South and Taylor to the intersection of United and Scott. The street vacation will be prepared, but it will not be submitted until the master planning process has been completed so that all agencies involved in the vacation process will be able to make informed decisions and provide appropriate support and approval for the street vacation. The fee for the street vacation proposal is $6,550. Upon a motion by Mr. Varner, seconded by Ms. King and unanimously carried, the Commission accepted the proposal for professional services by Wightman Petrie related to Union Station (Master planning and street vacation) B. Airport Economic Development Area (1) Staff report on disposition of property in the Airport Economic Development Area (604 S. Scott Street, Millennium Environmental). Mr. Schalliol noted that Union Station Properties is interested in purchasing the former Millennium Environmental site on the southeast corner of South and Scott Streets. Millennium Environmental is a 2.6 acre site that has environmental issues, back tax issues, lean issues and is a property that the city has been working with the state to get cleaned up to the point where it can have some economic value for the community. As part of this project being proposed today, one of the first phase elements is to incorporate that parcel into a larger development area along with the vacation of United Drive. The Millennium Environmental site would likely be used as a location for the electrical 7 COMMISSION ACCEPTED THE PROPOSAL FOR PROFESSIONAL SERVICES BY WIGHTMAN PETRIE RELATED TO UNION STATION (MASTER PLANNING AND STREET VACATION South Bend Redevelopment Commission Regular Meeting — November 22, 2011 express feeder system and other uses related to the larger development. Mr. Schalliol noted that one of the challenges with the site is that half has been cleaned up by IDEM and has a Comfort Letter from the state that the site is cleaned to environmental standards. On November 17, 2011, the State opened bids for environmental work on the southern half of the site. So, at this point in time, there isn't a Comfort Letter for that portion, but there will be one forthcoming once the site is cleaned. The Commission is not in position to sell the site until the environmental cleanup on that portion is complete. Ms. Jones stated that this is a project that falls in two different TIF districts. She asked how that would be handled. Mr. Schalliol replied that the master plan relates specifically to the property south of the tracks. The majority of the project will fall into the Airport Economic Development Area. Mr. Leone added that legal counsel can resolve those issues. It may be that funds can be allocated based on the portions that are in each TIF area. Otherwise, TIF legislation states that funds can be allocated from a TIF area based on a project "in or serving" the TIF area. The portions of the project that are not in the AEDA would certainly serve the AEDA. Upon a motion by Mr. Varner, seconded by Ms. King and unanimously carried, the Commission accepted the proposal from Union Station Properties for development of the Millennium Environmental site and will allow staff and legal to begin the process to COMMISSION ACCEPTED THE PROPOSAL FROM UNION STATION PROPERTIES FOR DEVELOPMENT OF THE MILLENNIUM ENVIRONMENTAL SITE AND WILL ALLOW STAFF AND LEGAL TO BEGIN THE PROCESS TO NEGOTIATE AN APPROPRIATE AGREEMENT TO BRING BACK TO THE COMMISSION FOR APPROVAL AT A LATER DATE South Bend Redevelopment Commission Regular Meeting — November 22, 2011 negotiate an appropriate agreement to bring back to the Commission for approval at a later date. A. South Bend Central Development Area (2) Proposal for professional services related to Union Station (Phase 1 Environmental Site Assessment). Mr. Schalliol asked that this item be tabled until further notice. Upon a motion by Mr. Varner, seconded by COMMISSION TABLED THE PROPOSAL FOR Ms. King and unanimously carried, the PROFESSIONAL SERVICES RELATED TO UNION STATION (PHASE 1 ENVIRONMENTAL SITE Commission tabled the Proposal for ASSESSMENT). professional services related to Union Station (Phase 1 Environmental Site Assessment). (3) Staff report on disposition of property in the Monroe Park Neighborhood (628 Rush Street, 609 Columbia Street). Mr. Sikora noted that on June 28, 2011 the Redevelopment Commission approved bid specs, fair - market valuation, and advertising of legal notices to begin the disposition process for five properties in Monroe Park. On July 26, the date bids were to be received, no bids were submitted. The thirty -day wait period began during which no bids could be accepted lower than the 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 received offers on two of those properties: 628 Rush Street — We've received a cash offer of $5000. This offer, like previous offers, is on the low side, though staff did confirm that the property will require $7000 6 South Bend Redevelopment Commission Regular Meeting — November 22, 2011 of repair (mostly plumbing and windows). The prospective buyer intends to make this home his permanent residence. He is a former police officer and currently serves in the US military. In cases where he is overseas for short deployments, his family will remain in the home. Staff recommends accepting the offer and requests permission to proceed with a Contract for Sale and associated documents necessary for the sale of this property. 609 Columbia Street — We've received one offer for $5000, once again from adjoining property owner Gil Michele (who is purchasing two other homes for $5000 and $10,000 respectively). This home currently has a tenant and is not in need of major repair, and given Mr. Michele's forthcoming investments in the neighborhood, staff would like to engage him more about this third property. As such, we ask permission to reject the offer and counter with $10,000 to continue the conversation. Upon a motion by Mr. Varner, seconded by Ms. King and unanimously carried, the Commission accepted the counter offer for 628 Rush Street and authorized staff to make a counter offer for 609 Columbia in the amount of $10,000. (4) Proposal to replace HVAC unit in the Wayne Street retail space. Ms. Jennings noted that there are two HVAC units located at 117 E. Wayne St. The Redevelopment Commission approved replacing the kitchen unit in October. An inspection of the second unit for the dining area revealed a cracked heat exchanger. A cracked heat exchanger can present a safety 10 COMMISSION ACCEPTED THE COUNTER OFFER FOR 628 RUSH STREET AND AUTHORIZED STAFF TO MAKE A COUNTER OFFER FOR 609 COLUMBIA IN THE AMOUNT OF $10,000 South Bend Redevelopment Commission Regular Meeting — November 22, 2011 hazard. Therefore, staff obtained three quotes for the repair. • Ideal Consolidated, Inc: $4,500 • Dynamic Mechanical Services, Inc.: $4,886 • Herman & Goetz, Inc.: $6,760 Staff recommends accepting the offer from Ideal Consolidated for the amount of $4,500. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission accepted the proposal from Ideal Consolidated, Inc. for $4,500 to replace HVAC unit in the Wayne Street retail space. B. Airport Economic Development Area (2) Administrative Settlement for acquisition of 1509 S. Kendall Street. Mr. Relos noted that on October 15, 2010, the Commission approved Resolution No. 2784, which authorized the purchase of 1509 Kendall and set the offering price at $25,500, the average of two independent appraisals. The property owner passed away in May 2010, leaving no will. Staff has been working with the owner's heirs and their attorney to reach an agreement to acquire this property. The property is a 1,416 square foot, one and a half story, 4 bedroom, 1 bath house with a fenced back yard. In 2001, a $50,000 mortgage was secured by the property owner, paying off a 1997 mortgage in the amount of $22,000 with the COMMISSION ACCEPTED THE PROPOSAL FROM IDEAL CONSOLIDATED, INC. FOR $4,500 TO REPLACE HVAC UNIT IN THE WAYNE STREET RETAIL SPACE South Bend Redevelopment Commission Regular Meeting — November 22, 2011 additional funds to remodel this house. Since the illness and death of the property owner, the mortgage has become delinquent. In addition, there are approximately $1,500 in legal fees, and $2,100 in moving costs to the son that currently lives at the property. The total cost of this acquisition is $59,100 ($55,500 mortgage payoff, $1,500 legal fees, $2,100 moving costs), which is similar to the total acquisition and relocation costs of similar properties. Staff requests your approval of the Administrative Settlement. Ms. King asked how long the son lived at the property. Mr. Relos responded that he's been living there for at least a couple of years and taking care of the property owner. Upon a motion by Ms. King, seconded by Mr. Alford and unanimously carried, the Commission approved the Administrative Settlement for acquisition of 1509 S. Kendall Street in the amount of $59,100. (3) Administrative Settlement for acquisition of 1511 S. Kemble Avenue. Mr. Relos noted that on September 27, 2011, the Commission approved Resolution No. 2942, which authorized the purchase of 1511 S. Kemble at an offering price of $24,250, the average of two independent appraisals. Because the property owners owe more on their mortgage than the appraised value, the Commission, on the same day, approved an Administrative Settlement in the amount of $17,500, for a total acquisition cost of $41,750. 12 COMMISSION APPROVED THE ADMINISTRATIVE SETTLEMENT FOR ACQUISITION OF 1509 S. KENDALL STREET IN THE AMOUNT OF $59,100. South Bend Redevelopment Commission Regular Meeting — November 22, 2011 In addition to the acquisition cost of this property, there will be relocation costs of $32,650. This property owner is married with three small children, and would like to quickly relocate. To enable them to do this, they would like a lump sum payment instead of going through the acquisition and relocation process. A lump sum payment now would allow them to move, clear their credit report more timely, and to then use the remaining relocation money of approximately $30,000 to put toward the acquisition of a new home. Staff feels the total acquisition and relocation cost of $74,400 is reasonable for this property, and requests your approval of the Lump Sum Administrative Settlement. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED THE ADMINISTRATIVE Mr. Alford and unanimously carried, the SETTLEMENT FOR ACQUISITION OF 1511 S. Commission approved the Administrative KEMBLE AVENUE IN THE AMOUNT OF $74,400. Settlement for acquisition of 1511 S. Kemble Avenue in the amount of $74,400. (4) Appointment of Jon Cook to a three -year term to the Blackthorn Owners Association Board of Directors. Mr. Inks noted that there are three members on the Blackthorn Owners Association board. All of the members are appointed by the Redevelopment Commission as long as the Commission owns a major portion of the land in Blackthorn Corporate Park. Each member has a three -year term, expiring in consecutive years. Bill Mischel, Shamrock Development, does not wish to be reappointed to the board, so the Association has recommended Jon Cook, Abro, to replace him. Mr. Cook's term would end December 13 South Bend Redevelopment Commission Regular Meeting — November 22, 2011 31, 20014, or until a successor is appointed. Upon a motion by Mr. Varner, seconded by Ms. King and unanimously carried, the Commission appointed Jon Cook to the Blackthorn Owners Association Board of Directors. (5) Proposal for appraisal of 401 N. Bendix Drive (Honeywell). Mr. Sikora noted that staff solicited proposals for conducting a disposition appraisal on property owned by Honeywell, Inc. and adjacent to Bosch Braking Systems, Inc. (401 N. Bendix Drive), property currently owned by the Redevelopment Commission. Rick Pitts and David Waszak conducted earlier appraisals on the Bosch campus. Staff requests acceptance of the proposals in the amounts of $5800 and $4600 respectively. Mr. Varner asked if these will be two separate appraisals. Mr. Inks responded yes. If we bought the property we would only be buying it if we had a development project for it and then we would need both appraisals. COMMISSION APPOINTED JON COOK TO THE BLACKTHORN OWNERS ASSOCIATION BOARD OF DIRECTORS. Upon a motion by Ms. King, seconded by COMMISSION ACCEPTED THE PROPOSALS FROM Mr. Varner and unanimously carried, the RICK PITTS AND DAVID WASZAK FOR Commission accepted the proposals from APPRAISAL OF 401 N. BENDIx DRIVE Rick Pitts and David Waszak for appraisal of (HONEYWELL) 401 N. Bendix Drive (Honeywell). (6) Resolution No. 2959 approving the fair market value of property in the Airport Economic Development Area. (401 N. Bendix Drive) Mr. Sikora noted that Resolution No. 2959, sets the fair market value for 401 North Bendix. The entire property is 29.46 acres in 14 South Bend Redevelopment Commission Regular Meeting — November 22, 2011 size and is zoned "LI" or Light Industrial. The proposed fair market value of the property as listed on the attached resolution was derived by averaging two independent MAI appraisals. Plant 100 — 25.9 acres $1.63 per sq. ft. (triple net) and sale price of $1,532,500 Plant 9 — 3.56 acres $1.73 per sq. ft. (triple net) and sale price of $462,500 Total Site — 29.46 acres $1.60 sq. ft. (triple net) and sale price of $1,967,500 Staff requests approval of Resolution No. 2959. Upon a motion by Ms. King, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2959 approving the fair market value of property in the Airport Economic Development Area. (401 N. Bendix Drive) (7) Bid Specifications and Design Considerations for 401 N. Bendix Drive. Mr. Sikora noted that the Bid Specifications outline the uses and development requirements that will be considered for this site, including that the property is offered in an "as is" condition and that proposals must include a reuse plan and project timeline. Emphasis will be placed on compatibility with the goals and objectives of the area's development plan. Staff asks for the approval of the Bid Specifications and Design Considerations for the disposition of this property. 15 COMMISSION APPROVED RESOLUTION NO. 2959 APPROVING THE FAIR MARKET VALUE OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (401 N. BENDIX DRIVE) South Bend Redevelopment Commission Regular Meeting November 22, 2011 Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED BID SPECIFICATIONS Ms. King and unanimously carried, the AND DESIGN CONSIDERATIONS FOR 401 N. Commission approved Bid Specifications BENDIx DRIVE. and Design Considerations for 401 N. Bendix Drive. (8) Authorization to publish Notice of Intended Disposition of Property with publication dates of December 2 and December 9, 2011 and Receipt of Bids at 10:00 a.m., December 27, 2011. (401 N. Bendix) Upon a motion by Mr. Varner, seconded by Ms. King and unanimously carried, the Commission authorized publication of the Notice of Intended Disposition of Property with publication dates of December 2 and December 9, 2011 and Receipt of Bids at 10:00 a.m., December 27, 2011. (401 N. Bendix) (9) Resolution No. 2966 related to acquisition of property in the Airport Economic Development Area. (701 W. Indiana) Mr. Relos noted that Resolution No. 2966, sets the acquisition offering price for 701 W. Indiana at $33,500, the average of two independent appraisals. The tavern that occupies this property would accept that purchase price, but would like it and the relocation payment as a lump sum payment. As part of the relocation process, another building that would accommodate this business would need to be identified, and that building would then need to be brought up to current building and fire codes. Funds would need to be provided to both acquire and rehabilitate this new building, and to assist the property owner through the various 16 COMMISSION APPROVED AUTHORIZATION TO PUBLISH NOTICE OF INTENDED DISPOSITION OF COMMISSION AUTHORIZED PUBLICATION OF THE NOTICE OF INTENDED DISPOSITION OF PROPERTY WITH PUBLICATION DATES OF DECEMBER 2 AND DECEMBER 9, 2011 AND RECEIPT OF BIDS AT 10:00 A.M., DECEMBER 27, 2011. (401 N. BENDIx) South Bend Redevelopment Commission Regular Meeting — November 22, 2011 departments that would need to approve this relocation. In addition, actual moving costs would be incurred and various closing costs paid. For comparison purposes, a private club one block away was acquired and relocated one year ago. This club's building on Indiana Avenue had an average appraised value of $24,000, which was the acquisition cost paid. In addition, relocation costs totaled $153,290, for total acquisition and relocation costs of $177,290. After a very difficult decision making process, this property owner has decided she prefers to get out of the bar business, and therefore not be relocated. She requests a lump sum payment of $190,000. Based on relocation costs paid for the private club, which was of similar size but moved themselves, an acquisition cost of $33,500 plus relocation costs of $156,500 is reasonable. Staff believes a lump sum payment of $190,000 for this business is reasonable, and requests your approval of the administrative settlement to allow for the acquisition of this property. Upon a motion by Mr. Varner, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2966 related to acquisition of property in the Airport Economic Development Area for $33,500. (701 W. Indiana) (10) Administrative Settlement for 701 W. Indiana. 17 COMMISSION APPROVED RESOLUTION NO. 2966 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA FOR $33,500.(701 W. INDIANA) South Bend Redevelopment Commission Regular Meeting — November 22, 2011 Upon a motion by Mr. Varner, seconded by Ms. King and unanimously carried, the Commission tabled Administrative Settlement for 701 W. Indiana. C. West Washington- Chapin Development Area (1) Resolution No. 2960 authorizing the transfer of real property to the City of South Bend Board of Public Works. (803 W. Washington) Mr. Relos noted that on October 25, 2011, the Commission approved Resolution No. 2948, approving the acquisition of 803 W. Washington, contingent on the approval by Indiana Landmark's Executive Committee to accept transfer of this property. This approval was granted, and the property has since been acquired. Resolution No. 2960 transfers the property to the Board of Public Works, which will in turn transfer and deed the property to Indiana Landmarks. Staff requests approval of Resolution No. 2960. Upon a motion by Ms. King, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 2960 authorizing the transfer of real property to the City of South Bend Board of Public Works. (803 W. Washington) (2) Memorandum of Understanding with the University of Notre Dame, South Bend Heritage Foundation and Vanir Group of Companies for the redevelopment of Hansel Center. Mr. Relos noted that beginning in March 2009, the Department has been working with community partners to transform the historic Hansel Center, located at 1045 W. 18 COMMISSION TABLED ADMINISTRATIVE SETTLEMENT FOR 701 W. INDIANA. COMMISSION APPROVED RESOLUTION NO. 2960 AUTHORIZING THE TRANSFER OF REAL PROPERTY TO THE CITY OF SOUTH BEND BOARD OF PUBLIC WORKS. (803 W. WASHINGTON) South Bend Redevelopment Commission Regular Meeting — November 22, 2011 Washington, into a premier arts and cultural center. This facility will strengthen the community by celebrating cultural diversity through its provision of a common and accessible space for community programming, art, and education. It will provide a gathering place through its class and meeting rooms, gallery, and outdoor spaces. This facility will have a national and international reach, which will ultimately attract resources from outside the area and further strengthen the local community. The Memorandum of Understanding (MOU) between South Bend Heritage Foundation, Vanir (a donor to the project), the University of Notre Dame, and the Redevelopment Commission, will allow the hammers to start swinging. The MOU lists each partner's responsibilities, and when and how the construction phases will be completed. Once the MOU is fully executed, it is anticipated construction will begin by year's end. Ultimately, this rehabilitated historic structure will become an anchor in the West Washington Chapin Museum Campus area, joining such west side stalwarts as The Center for History, Studebaker National Museum, Indiana University Civil Rights Heritage Center at the Natatorium, and the soon to be opened Salvation Army Kroc Center. Staff requests favorable consideration of this MOU, to allow this important project to move forward, and to rehabilitate an under utilized historic building into an asset to the entire community. Mr. Varner asked whether all of the funds are in hand for this project. Mr. Brown -Gort 19 South Bend Redevelopment Commission Regular Meeting — November 22, 2011 said that they are. University policy stipulates that they must be. Mr. Leone noted that this project is being handled by outside legal council. The city's procedure for using outside council is to obtain an opinion letter from outside council outlining the process for each contract. This is a very complicated one. Mr. Leone wanted to make sure he had such a letter on file. He recommended the Commission approve the MOU, subject to obtaining a letter from outside council for this project. Ms. King asked if the funding was still the same. Mr. Gibney responded that it is; in fact, there has been an increase in funding by the University of Notre Dame. There was no additional request from the city's TIF or CDBG. Mr. Mariani noted that when the MOU is approved South Bend Heritage Foundation will begin Phase I environmental remediation of the building. Upon a motion by Mr. Varner, seconded by Mr. Alford and unanimously carried, the Commission approved the Memorandum of Understanding with the University of Notre Dame, South Bend Heritage Foundation and Vanir Group of Companies for the redevelopment of Hansel Center, subject to obtaining the required letter from outside council. D. South Side Development Area There was no business in the South Side Development Area. E. Northeast Neighborhood Development Area 20 COMMISSION APPROVED THE MEMORANDUM OF UNDERSTANDING WITH THE UNIVERSITY OF NOTRE DAME, SOUTH BEND HERITAGE FOUNDATION AND VANIR GROUP OF COMPANIES FOR THE REDEVELOPMENT OF HANSEL CENTER SUBJECT TO OBTAINING THE REQUIRED LETTER FROM OUTSIDE COUNCIL. THERE WAS NO BUSINESS IN THE SOUTH SIDE DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting — November 22, 2011 There was no business in the Northeast THERE WAS NO BUSINESS IN THE NORTHEAST Neighborhood Development Area. NEIGHBORHOOD DEVELOPMENT AREA. F. Douglas Road Economic Development Area There was no business in the Douglas Road THERE WAS NO BUSINESS IN THE DOUGLAS Economic Development Area. ROAD ECONOMIC DEVELOPMENT AREA. G. Other (1) Resolution No. 2961 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Snow Removal Bidding Project). Ms. Jennings noted that according to City Ordinance No. 10068 -11, Sec. 18 -7, staff is preparing to contract out for the removal of snow from Redevelopment Commission owned property. Resolution No. 2961 approves an Addendum to the Master Agency Agreement with the Board of Public Works that it act as agent for the bidding and awarding of the snow removal contract. Staff recommends approval. Ms. King clarified that the contract budget was $20,000. Ms. Jennings responded yes. Mr. Inks noted that the city is considering doing some type of combined effort for snow removal on all city properties, whether it be in -house workers or hiring a firm to do city properties. He thought the Commission would like to participate in that effort when it is in place. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No. 2961 Ms. King and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY 21 South Bend Redevelopment Commission Regular Meeting November 22, 2011 Commission approved Resolution No. 2961 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Snow Removal Bidding Project). (2) Resolution No. 2962 setting procedures for contracts for property related services. Mr. Inks noted that items G2, G3, G4, and G5 are all annual administrative items. Mr. Meteiver has drafted all of these resolutions. This item sets procedures to allow staff to approve contracts for property related services, to be later ratified by the Commission. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2962 setting procedures for contracts for property related services. (3) Resolution No. 2963 setting procedures for temporary use agreements. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2963 setting procedures for temporary use agreements. (4) Resolution No. 2964 authorizing the Director of Redevelopment to approve and execute contracts on behalf of the City of South Bend, Indiana, Department of Redevelopment related to the operation and maintenance of Blackthorn Golf Course. Mr. Inks noted Resolution No. 2964 authorizes himself to approve and execute 22 AGREEMENT (SNOW REMOVAL BIDDING PROJECT. COMMISSION APPROVED RESOLUTION NO. 2962 SETTING PROCEDURES FOR CONTRACTS FOR PROPERTY RELATED SERVICES. COMMISSION APPROVED RESOLUTION NO. 2963 SETTING PROCEDURES FOR TEMPORARY USE AGREEMENTS. South Bend Redevelopment Commission Regular Meeting — November 22, 2011 contracts on behalf of Redevelopment related to the operation and maintenance of Blackthorn Golf Course. This is the same resolution approved for 2011. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2964 authorizing the Director of Redevelopment to approve and execute contracts on behalf of the City of South Bend, Indiana, Department of Redevelopment related to the operation and maintenance of Blackthorn Golf Course. (5) Resolution No. 2965 authorizing the Director of Economic Development to approve and execute plats and conduct other administrative acts on behalf of the City of South Bend, Indiana, Department of Redevelopment. Mr. Inks noted that Resolution No. 2965 authorizes himself to execute and approve plats and conduct other administrative acts on behalf of the Department of Redevelopment. Again, this is the same as approved for 2011. Ms. Jones asked whether this resolution might also allow staff to contract for legal services related to acquiring tax sale properties. Mr. Meteiver responded that staff is considering performing those services in -house rather than contracting them out. Upon a motion by Ms. King, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2965 authorizing the Director of Economic Development to approve and execute plats and conduct other administrative acts on behalf of the City of South Bend, Indiana, 23 COMMISSION APPROVED RESOLUTION NO. 2964 AUTHORIZING THE DIRECTOR OF REDEVELOPMENT TO APPROVE AND EXECUTE CONTRACTS ON BEHALF OF THE CITY OF SOUTH BEND, INDIANA, DEPARTMENT OF REDEVELOPMENT RELATED TO THE OPERATION AND MAINTENANCE OF BLACKTHORN GOLF COURSE. COMMISSION APPROVED RESOLUTION NO. 2965 AUTHORIZING THE DIRECTOR OF ECONOMIC DEVELOPMENT TO APPROVE AND EXECUTE PLATS AND CONDUCT OTHER ADMINISTRATIVE ACTS ON BEHALF OF THE CITY OF SOUTH BEND, INDIANA, DEPARTMENT OF REDEVELOPMENT. South Bend Redevelopment Commission Regular Meeting — November 22, 2011 Department of Redevelopment. (6) Agreement for Services with the Civil City of South Bend for Legal Services (Calendar Year 2012). Mr. Inks noted that the Agreement for Services outlines separate amounts for work in the AEDA and SBCDA, $52,760 and $17,590 respectively for a total contract amount of $70,350. Mr. Inks also noted that the contract references that those amounts have been appropriated. They have not been appropriated yet. He suggested approval subject to appropriation of those funds since the agreement is for 2012. The Agreement is substantially the same contract that we entered into last year. Upon a motion by Mr. Varner, seconded by Ms. King and unanimously carried, the Commission approved the Agreement for Services with the Civil City of South Bend for Legal Services (Calendar Year 2012) in the amount of $70,350, subject to the funds being appropriated for 2012. (7) Business Development Corporation engagement letter dealing with the Chase Tower Project. Mr. Inks noted that the South Bend Common Council passed a resolution in support of city participation in a renovation of the Chase Tower building. Staff has been working with one developer, reviewing its proposal. A joint committee, including the Council felt it would be beneficial to have a third party credit review of the developer. Staff solicited a proposal from the Business Development Corporation to do that review. They will charge an hourly rate, not to exceed $1,500 24 COMMISSION APPROVED THE AGREEMENT FOR SERVICES WITH THE CIVIL CITY OF SOUTH BEND FOR LEGAL SERVICES (CALENDAR YEAR 2012) IN THE AMOUNT OF $70,350, SUBJECT TO THE FUNDS BEING APPROPRIATED FOR 2012 South Bend Redevelopment Commission Regular Meeting — November 22, 2011 plus out of pocket expenses. Staff asked for approval of a not -to- exceed amount of $2,000. Ms. Jones disclosed her relationship to Dan Jones, head of the Business Development Corporation, her husband. Upon a motion by Mr. Varner, seconded by Ms. King and unanimously carried, the Commission approved the Engagement Letter with Business Development Corporation related to the Chase Tower project in an amount not to exceed $2000. H. Ratification of Temporary Use Agreement Upon a motion by Mr. Varner, seconded by Ms. King and unanimously carried, the Commission ratified the Temporary Use Agreement with Entermission Inc for storage of tools and materials from November 22 through December 31, 2011. 7. PROGRESS REPORTS Mr. Inks noted that staff has been working with St. Vincent de Paul to acquire its property at LaSalle Square. Staff is working on an option agreement and doing that in such a manner that cash flow is available from the Airport TIF. We are hoping to bring this forward at the December 13, 2011, Redevelopment Commission meeting. Mr. Inks asked the Commissioners if there would be a quorum for the December 27 meeting. Commissioners were unsure. Mr. Inks suggested canceling the December 27 meeting. There will be a January 3, 2012 Annual Organizational Meeting. We could also schedule a regular business meeting to 25 COMMISSION APPROVED THE ENGAGEMENT LETTER WITH BUSINESS DEVELOPMENT CORPORATION RELATED TO THE CHASE TOWER PROJECT IN AN AMOUNT NOT TO EXCEED $2000 COMMISSION RATIFIED THE TEMPORARY USE AGREEMENT WITH ENTERMISSION INC FOR STORAGE OF TOOLS AND MATERIALS FROM NOVEMBER 22 THROUGH DECEMBER 31, 2011 South Bend Redevelopment Commission Regular Meeting — November 22, 2011 follow the Annual Organizational Meeting to take receive bids on 401 S. Bendix and to consider any other items that cannot wait until the January 24, 2012 meeting. Commissioners agreed 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Tuesday, December 13, 2011 at 4:00 p.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Ms. King made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 5:00 p.m. Donald E. Inks, Director 26