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Home My WebLink About12-13-11 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING December 13, 2011 4:20 p.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana Meeting was moved to the Council Chambers on the 4th floor of the County-City Building. 1. ROLL CALL Members Present: Ms. Marcia Jones, President Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Members Absent: Ms. Stephanie Spivey Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Matthew Sikora, Economic Development Specialist Mr. Jitin Kain, Senior CED Specialist Ms. Debrah Jennings, Property Manager Others Present: Mayor Stephen Luecke Mr. Tom Price, Mayor's Office Mr. Joe Kernan, South Bend Silver Hawks Mr. Andrew Berlin Ms. Beth Leonard Inks, Director, Community Development Ms. Liz Maradik, Community Development Ms. Patti Lesniewicz, Community & Economic Development Mr. Aaron Perri, Downtown South Bend Ms. Tamara Nicholl-Smith Mr. Paul Phair, Holladay Corp. Mr. Pat Kennedy, Lee Insurance Group Ms. Wendy Kennedy, Lee Insurance Group Ms. Amber Zebell, Prism Science Ms. Jayne Flanagan, Michiana Brick& Building Supply Mr. Billy Ponko, BSA LifeStructures Mr. Chris Lake, BSA LifeStructures Ms. Geri Hathaway, Hathaway2, Inc. Mr. Charlie Thompson, St. Vincent DePaul Society Mr. Chuck Lehman, Lehman& Lehman South Bend Redevelopment Commission Regular Meeting—December 13, 2011 1. ROLL CALL (CONT.) Mr. Phil Byrd, South Bend Heritage Foundation Mr. Gary Gilot, Board of Public Works Mr. Rich Hill, Baker & Daniels Mr. Philip Panzica, The Panzica Group Ms. Sara Stewart, Unity Gardens Ms. Linda Wolfson, Community Forum for Econ Dev Ms. Rita Kopala Mr. John C. Eddingfield Ms. Mary Jan Hedman Mr. Richard Nussbaum Mr. Beene Veen Mr. John Farrell Mr. Martin Cuellar Mr. Steve Henry Mr. Robert Henry Ms. Toni Newson Ms. Melody Gonzaly Mr. Jerry Frantz Ms. Beverly Frantz Mr. David Jones Mr. Dimitrios Vasiliades Ms. Kim Allen Mr. Dan Miles Mr. Rick Berger Mr. Jeffrey Costello Mr. Lou Pierce Mr. Jeff Cohn Mr. Shane M. Fimbel Mr. Leroy C. King, III Mr. Mitch Yaciw Mr. Nate Bosett Mr. Edward Levy 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Tuesday, November 22, 2011. Upon a motion by Mr. Downes, seconded by Mr. COMMISSION APPROVED THE MINUTES OF THE Alford and unanimously carried, the Commission REGULAR MEETING OF TUESDAY,NOVEMBER approved the Minutes of the Regular Meeting of 22,2011 Tuesday, November 22, 2011. 2 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted December 13, 2011 for approval. 305 FUND SBCDA BOND ADG Century Center West Entry Improvements ADG Century Center South Entry Improvements ADG Century Center Island Park Pavilion ADG Century Center Island Park New Pavilion ADG Century Center Island Park Pedestrian Bridge South Bend Tribune Tri County news 324 AIRPORT AEDA Michaels Appraisal Services 1509 S Scott/725 Indiana Ave/729 W Indiana/ 1504 S Kemble Jerome E.Michaels,MAI 3,350.00 1522 S Prairie/913-915 W Indiana Ave Ignition Pk Lot Mass Earthwork/Bonus Early R&R Excavating,Inc. 119,000.00 completion(17 days x$1,000) Baker&Daniels 3,170.50 Career Academy Armstrong 17,385.00 South Bend Emergency Training Center R.E.Pitts&Associates, Inc. 4,350.00 913-915 W. Indiana Ave/1522 Prairie Ave Meridian Title Corporation 5,817.00 Various Title Insurances(21) DLZ 520.00 SB Fire Station Emergency Response C&E Excavating 597,157.32 Mayflower Boulevard Variance Petition&special exception for Rose DHA 6,397.00 Brick&Fuel Oliver Memorial Park Christopher B. Burke 568.75 Demo of 1503 /1505 Prairie Ave Jackson Services, Inc. 13,950.00 Ignition Park South Demolitions,Phase 1 Ziolkowski Construction,Inc. 248,750.85 South Bend Animal Control Fuerbringer Landscaping&Design,Inc. 71,490.00 Oliver Plow Lot 8 -Landscape Improvements DLZ 34,147.50 City of South Bend On Site-bid packet B Meridian Title Corporation 75,079.13 1511 S Kemble-Carla Davis DLZ 6,640.00 US 31/Adams DLZ 1,080.00 Engineering For Expansion of Olive/Pine Rd ADG 1,440.00 Prairie Salvage relocation ADG 2,560.00 West Entry Improvements ADG 2,275.00 Pedestrian Bridge ADG 1,200.00 Island Park Pavilion Dave Waszak,MAI 3,200.00 Appraisal of 2610 Prairie South Bend Parks&Recreation Dept. 1,855.00 Lawn Maintenance ADG 23,825.60 Relocation Project Bosch Site 401 N Bendix Dr Development Strategies Group 6,500.00 So Bend Fire Dept Training Center Graham Allen Partners LLC Study for Feasibility Study& Strategic Plan for 95,972.50 Ignition Pk Blue Waters Group Ignition Pk Marketing&Other Professional 54,629.69 Services Abonmarche 1,000.00 So. Bend Fire Station#5 Development Strategies Group 6,500.00 Regional Fire Training Center Armstrong 3,457.50 So. Bend Emergency Training Center Dore&Associates Contracting Inc 336,582.31 Studebaker Area A Demolition 1st Financial Bank,Escrow Agent 17,714.86 Studebaker Area A Demolition Escrow Agent 3 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 3. APPROVAL OF CLAIMS (CONT.) Hull&Associates, Inc. 1,077.00 General Consulting Oliver Area Innovation Park 514.33 Monthly Office Space Rental/Beverages McGuire, Craddock& Strother,P.C. 4,724.25 TIC United,Debor Sopko,Nubbaum,Inabnit&Kaczmarek 2,940.70 Legal services Wausau Tile Inc. 46,405.80 Benches&Planters Jefferson&Main HRP Construction 145,572.98 LaSalle Square Phase I DHA 19,700.00 Various Ignition Park/Data Realty site projects Weaver Boos 9,500.00 Bosch site Phase I ESA 420 FUND TIF DISTRICT-SBCDA GENERAL Tri County News 55.91 Notice To Bidders Michiana Lock&Key- Demolition&Parking Lot Construction South bend Tribune Notice To Bidders Michiana Lock&Key- 52.33 Demolition&Parking Lot Construction ARC 781.99 Demo-Michiana lock&Key Wightman Petrie 6,535.00 Phase II ESA-Former Troeger Sheet Metal Site Remove existing Pressure Sensitive on EPDM Andrew M Rigley Roofing 3,985.00 Rubber roof 500 Lineal feet of seam Danco 2,500.00 Summer fountain maintenance/chemical South bend Water Works 35.91 325 S Lafayette Blvd Indiana Michigan Power 159.98 329 S Lafayette Blvd South Bend Parks&Recreation Dept. 585.00 Lawn Maintenance Sopko,Nussbaum, Inabnit&Kaczmarek 5,454.05 Legal services Minor subdivision plat and changes to plat DHA 2,734.00 drawings-Monroe Park houses South Bend Parks&Recreation Dept. 336.00 Remove 3 dead/dying Ash trees NIPSCO 349.19 422 TIF DISTRICT WEST WASHINGTON South Bend Parks&Recreation Dept. 90.00 Lawn Maintenance Sopko,Nussbaum, Inabnit&Kaczmarek 1,105.25 Legal services 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT The Troyer Group 4,972.48 Fagade Studies for city of South Bend/Memorial Ziolkowski Construction,Inc. 36,750.00 Bartlett St Parking Garage Structure 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA#1 Lawson-Fisher associates P.C. 16,745.92 So. Main St to Lafayette Blvd Connector Christopher B. Burke 3,908.64 Erskine Detention Construction Observation C&E Excavation,Inc. 32,088.38 Erskine Detention Pond Reconstruction South Bend Parks&Recreation Dept. 330.00 Lawn Maintenance 435 FUND DOUGLAS ROAD Abonmarche 1,200.00 SR 23 and Douglas-Added Right Turn Ln Abonmarche 4,000.00 Douglas Road-Bus Shelters $ 2,118,755.60 4 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 3. APPROVAL OF CLAIMS (CONT.) Upon a motion by Mr. Downes, seconded by Ms. King COMMISSION APPROVED THE CLAIMS and unanimously carried, the Commission approved the SUBMITTED DECEMBER 13,2011,AND ORDERED Claims submitted December 13, 2011, and ordered THE CHECKS TO BE RELEASED checks to be released. 4. COMMUNICATIONS Mr. Inks noted that there was a communication from LETTER OF SUPPORT FOR DTSB DOWNTOWN Mr. Terrance Meahan, owner of Fiddler's Hearth, PARKING. supporting using Downtown South Bend, Inc. to manage parking in the downtown. Mr. Inks asked that items 6.B.(1) and (2) be moved to the top of the agenda to accommodate the schedules of Mayor Luecke and others. There was no objection and the items were so moved. 6. NEW BUSINESS B. South Bend Central Development Area (1) Stadium Use, Management and Operations Agreement by and between the South Bend Professional Baseball Club, LLC, the Board of Park Commissioners of the Park District of the city of South Bend, and the South Bend Redevelopment Commission. Mr. Inks noted that the Silver Hawks team is in the process of being sold to a new investor group. The new ownership must still be approved by baseball league authorities. The Redevelopment Commission has been asked contribute up to $1.75 million for further improvements to the stadium from the South Bend Central Development Area (SBCDA) TIF. Mayor Stephen Luecke noted that the 5 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... Stadium Use Management and Operation Agreement has already been approved and executed by the South Bend Park Board and himself. The document also requires Commission approval, in part because the new owners are asking for additional improvements to the stadium. The recent improvements to the stadium are spectacular, have made a tremendous difference for the viewing fans and allow us to use the stadium more frequently for other types of events. The Agreement outlines what those improvements will be. The prospective buyers will also make a substantial private investment. Mayor Luecke noted that Coveleski Stadium has been an anchor for downtown South Bend. It is anticipated that increased attendance at games and other events will spur additional development in the area. These improvements conform to the master plan for downtown. Mr. Kernan noted that six years ago he put together a group of local investors for the purpose of keeping the Silver Hawks in South Bend. They have accomplished that mission. The team has not been financially sustainable, so Mr. Kernan began looking for new investors. Mr. Berlin was introduced to him by a mutual friend. After some discussion, Mr. Berlin became interested in purchasing the team outright. Following approval of this Agreement by the Commission, Mr. Berlin and his company will be applying formally to baseball league for its approval, a three step process: 6 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... approval by the other owners in the Midwest league, then the National Association of Minor Leagues and then a review by the office of the Commissioner of Baseball. Mr. Kernan believes Mr. Berlin is the right person at the right time to take over the reigns of the Silverhawks. Mr. Berlin is a baseball fan, a partner in the Chicago White Sox, has had an interest in minor league baseball and can do many things Mr. Kernan's investors have been unable to do, as far as providing resources for advertising, marketing, and promotion. The improve- ments the Commission has already made have made a huge difference. The improvements being recommended will do complete the project and make Coveleski a family friendly atmosphere with family- centered activities. Our goal is the same as it was six years ago —to keep the ball club here. This agreement, with Commission consent, will keep the South Bend Silver Hawks up and running for the next 20 years, and is an extraordinary commitment on the part of Mr. Berlin. Mr. Berlin said that for him the issue was straight-forward. The economic development of South Bend hinges on having the right kind of attractions downtown that draw people to the location. He believes with an upgraded stadium and the kind of marketing promotions just spoken about, the ball park will become an outstanding cornerstone of the plan to bring people downtown. For him, it's the pursuit of a 7 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... business he enjoys and that he's already heavily invested in with the Chicago White Sox. He will bring the resources to promote the team, and put $7 million into the stadium improvements as well. Mayor Luecke noted that a commitment to keep the Silver Hawks here for 20 years is important for the city of South Bend. What's being requested today is the approval of the Use, Management and Operation Agreement. We are not asking for an appropriation today. We'll ask that of the Common Council after the first of the year. But, the Commission's approval of this Agreement would indicate its willingness to fund up to $1.75 million in additional improvements to the stadium from TIF funds. Mr. Downes noted, in the interest of full disclosure, he is one of about 50 current investors in the Silver Hawks; but his information from legal council is that he does not have a financial conflict of interest. Mr. Varner stated that, historically, each successive lease arrangement the city enters into seems to result in diminishing returns to it. If there's some way to structure the $1.75 million improvements to a new revenue stream or an increased revenue stream for the city, he could be perfectly happy with that. He doesn't believe the $1.75 will make a significant difference. Because of that, he's not supportive of the commitment at this time. 8 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... Mr. Downes responded that the way he understands the agreement is that the more successful the team is in drawing people to the stadium, the higher the attendance is, there is a financial incentive whereby the city actually does gain some of the revenue from it. Mr. Berlin answered that to the extent that attendance grows there is a payment to the city of additional revenue. Also, the city can negotiate after a period of five years to raise the rent. The idea is for the team to become financially sustainable and then be able to afford additional rent. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE STADIUM USE, Ms. King and unanimously carried, the MANAGEMENT AND OPERATIONS AGREEMENT Commission approved the Stadium Use, BY AND BETWEEN THE SOUTH BEND PROFESSIONAL BASEBALL CLUB,LLC,THE Management and Operations Agreement by BOARD OF PARK COMMISSIONERS OF THE PARK and between the South Bend Professional DISTRICT OF THE CITY OF SOUTH BEND,AND THE Baseball Club, LLC, the Board of Park SOUTH BEND REDEVELOPMENT COMMISSION. Commissioners of the Park District of the city of South Bend, and the South Bend Redevelopment Commission. (2) Resolution No. 2988 pledging certain tax increment revenues to the reimbursement of costs incurred by the City of South Bend (Chase Tower Parking Garage). Mr. Inks noted that negotiations are continuing with a potential developer of the Chase Tower Building. Should the city reach an agreement to financially participate in the renovation of Chase Tower, it would be necessary to close the transaction quickly. To keep open the possibility of a quick 9 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... closing, the city has scheduled a special meeting of the Common Council for December 19, 2011, to consider an appropriation of up to $5.7 million. A part of the presentation to the Common Council would be this proposed Reimbursement Resolution. The resolution itself would pledge new tax increment revenue from the Chase Tower Building to reimburse the city for its expenditures related to acquiring a real estate interest in the Chase Tower parking garage. Existing increment currently being collected from the Chase Tower would remain with the downtown TIF, while any new increment generated by the improvements to the property would be pledged to reimburse the city. Mayor Stephen Luecke noted the improvements the potential developer would make would include substantial renovations to the Chase Tower building, branding of the hotel (an upscale level) and needed improvements for office space. We believe these improvements to the building will increase the assessed value of the building so that the increase could be used to repay the city for its investment. Ms. King expressed her two areas of concern. The first being the spirit of TIF. The Commission has often discussed TIF and how TIF works. A new or existing business comes to us with an idea of either building or 10 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... expanding and presents a plan. To accomplish their plan, they ask us for participation, generally through some kind of infrastructure. Those resources are regulated by state law on how we can participate, but we participate frequently. The TIF funds pledged to a project are actually taxes collected from businesses within that district. So this is truly a business-helping-business scenario. That is what TIF is built on. After the project is completed, the new and increased taxes are created by the project are then added back into the TIF to increase that TIF and it becomes available for the next project. In the matter before us today, it's proposed that we fund the project by taking cash reserves from the city's budget and then replacing or repaying them by the incremented TIF funds generated by the new project. Not only does she see two serious risks with this proposal, the length of the time horizon for the payment of the debt or the possibility of no repayment of debt if the project doesn't go forward and is not successful long term. But she doesn't believe this scenario is the spirit of TIF. It's not intended to be a repayment program. Also, if the Commission proceeds with this proposal, she feels it would be setting a precedent that would not only be onerous, but quite dangerous. The second issue that concerns her is one of timing. We are a body of five volunteers, 11 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... three appointed by the Mayor, two appointed by the Council. We serve at the will of these entities and are reappointed or replaced on an annual basis. In a few short weeks the city will have a new Mayor and four new Council members. With them comes the prerogative to appoint new Commissioners. To proceed with today's proposal would be a burden to all of these new public servants with the consequences of our action. To do so greatly offends her sense of fair play. With that being, said she invited other Commissioners to comment. Mr. Varner asked if staff has done a pro forma. Mr. Inks responded that staff has done a rough calculation on a renovation project. It's difficult to determine how much of that will actually get into the assessed value. Mr. Varner asked what the base increment was. Mr. Inks replied that the current assessed value is $5.4 million dollars. About half of that, $2.5 million, is actual increment to the downtown TIF. Mr. Varner noted that as a member of the Council, he knows there are concerns among other Council members, similar to what Ms. Jones just described. If the city could take out a bond to make the improvements, to be repaid by TIF, that would reduce the risk to tax payers. That might make financial support for the project more palatable. Mr. Varner also said he shares the concern about 12 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... the end-of-year timing. Mr. Downes added that the Commission is being asked to approve something that is only a concept. There are too many unanswered questions. He prefers the Council take its action first. If the Council gives its support, then the Commission could reconsider. He believes the investment that is being discussed will not touch what needs to be done to that building. He does not want the city or the Redevelopment Commission to have any ownership in it at all. Ms. Jones said her concern is that she thinks this is a poor precedent to set. To extract one particular building from a TIF and basically create a TIF of its own is a new situation. Therefore, she is not in favor of that proposal. Mr. Alford agreed with Ms. Jones that the timing is serious and he too cannot support the request at this time. Mr. Varner made a motion to approve MOTION TO APPROVE RESOLUTION No.2988 Resolution No. 2988. The motion failed for FAILED DUE TO THE LACK OF A SECOND. lack of a second. 5. OLD BUSINESS A. Public Hearing (1) Consideration of Resolution No. 2952 confirming a resolution amending the Development Plan for the South Bend 13 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 5. OLD BUSINESS (CONT.) A. Public Hearing (1) continued... Central Development Area and adding one or more parcels to the List of Parcels to be Acquired. (former Wharf site) Mr. Inks noted that the public hearing on Resolution No. 2952 was held on November 22. At that time staff had learned that the situation with the former Wharf site had changed. The property was in the process of being sold and would likely be developed without the city taking ownership. The new owner is here to explain his company's plans for the property. Mr. Phil Panzica noted that he represents South Bend Wharf Partners, LLC, the new owners of the Wharf site. All members of the new ownership are regionally involved in architecture, construction, development, finance and development requirements. The LLC respectfully requests that the Commission remove the parcel from the acquisition list. They have full intentions of developing the site to its highest potential with a development this community needs and deserves. The group is seeking input from community leaders on the potential project. Ms. King made a motion to approve MOTION TO APPROVE RESOLUTION No.2952 Resolution No. 2952. The motion failed for FAILED FOR LACK OF A SECOND lack of a second. 14 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS A. Public Hearings (1) Public Hearing on Resolution No. 2968 confirming a resolution expanding the boundaries of the South Bend Central Development Area, expanding the allocation area for purposes of tax increment financing and amending the Development Plan for the South Bend Central Development Area. Mr. Kain noted that on October 25, 2011, the Commission approved Resolution No. 2951, a Declaratory Resolution to expand the boundaries of the South Bend Development Area. On November 15, 2011, the St. Joseph County Area Plan Commission approved its resolution determining that the boundary expansion conforms to the plan of development for the city. On November 28, 2011, the South Bend Common Council approved its resolution confirming the Area Plan Commission's resolution. The reason for the expansion is that the current SBCDA boundary, and the East Bank Village boundary, bisects into halves the ten acre Transpo site. Mr. Kain presented a Master Plan for Howard Park which talks about developing the site into a residential site with single family housing and possibly some multi-family housing. This expansion allows the Redevelopment Commission to allocate TIF money for infrastructure improvements so that a private developer can take this Master Plan from vision to reality. Resolution No. 2968 is the final step in the 15 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) A. Public Hearings (1) continued... process of approving the boundary expansion. The purpose of the expansion is to enable the expenditure of TIF funds for infrastructure improvements. There is no acquisition of property planned at this time. Mr. Varner asked Mr. Kain to clarify the issue of the taxes generated in the Transpo site area. Mr. Kain responded that five acres of the Transpo site currently lie within the SBCDA. The remainder, another five acres, is not in any TIF area. State law stipulates that TIF areas established after 1997 may not capture residential taxes to a TIF district. The SBCDA was established prior to 1997, so increment from residential development in those five acres may be captured in the TIF district. Residential development in the five acres being added to the TIF district by Resolution No. 2968 will go to the various taxing jurisdictions that collect in that area. Mr. Inks noted that the public hearing file is complete, containing: (1) a copy of Resolution No. 2951 expanding the boundaries of the South Bend Central Development Area, expanding the allocation area for purposes of tax increment financing and amending the Development Plan for the South Bend Central Development Area; (2) a copy of Area Plan Commission Resolution No. 223-11 approving declaratory Resolutions No. 2951 of the Redevelopment Commission; (3) a copy of South Bend Common Council Resolution No. 4133 -11 approving declaratory Resolutions No. 2951 16 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) A. Public Hearings (1) continued... of the Redevelopment Commission; (4) a copy of the Notice of Hearing; (5) a copy of Resolution No. 2968; (6) an affidavit from Jacki Krolczyk, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on December 2, 2011; (7) an affidavit from Richard Andrysiak, Classified Manager of the Tri-County News, that the Notice of Hearing was published in that newspaper on December 2, 2011; (8) a statement from Jitin Kain that on November 30, 2010 affected property owners and registered neighborhood associations were sent notice of the Public Hearing; and (9)the mail was checked prior to this meeting. As of 3:00 p.m., December 13, 2011, there were 0 written remonstrances received related to Resolution No. 2968. Ms. Jones opened the public for whoever wished to speak regarding Resolution No. 2968. RESIDENT IN NEIGHBORHOOD: I am neither here nor there, but would like to know—the greater concern is the neighborhood properties. We are understanding that that's not the phase the city is at right now. Does staff have a timeline or any projections as to when that phase will start? MR. KAIN: The immediate priority is to deal with the Transpo site; the ten acre site —I'll call it Phase I—the development in the Howard Park Neighborhood. I think it can 17 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) A. Public Hearings (1) continued... be done simultaneously, where once Phase I is underway, we can look at which adjacent properties need to be acquired. The Master Plan is really a conservation plan. The city is not talking about acquiring homes and demolishing them for new development. The city will be using underutilized land and really converting the neighborhood back to a residential neighborhood. There are a couple of industrial uses next to the Transpo site which may need to be acquired, and with those business owners, staff has initiated some conversation, and when the time is right, staff will talk to them about relocation. We are not talking about acquiring residential property, demolishing homes and doing major urban renewal. RESIDENT: Is that true for this stage, or do you foresee that happening at any stage? MR. KAIN: Mr. Kain responded that the first thing to happen is to clear the Transpo site. The old buildings are still up at the Transpo site. There are some environmental issues with this site, so Transpo will need to clear the site, demolish the site, and clean issues which may take up to a year. During that time, staff will plan for residential lots within the Transpo area. The plan projects roughly 50 residential units. So conversation about acquisition that needs to be had would happen after that. RESIDENT: Then the city will look to see what needs to be acquired? 18 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) A. Public Hearings (1) continued... MR. KAIN: The Master Plan does not require any residential properties. RESIDENT: Phase I. Mr. Kain: That is the whole plan. The current homes that are already there will stay there. Mr. Downes asked Mr. Kain where someone could access a copy of the Master Plan. Mr. Kain responded that the Master Plan is accessible on-line on the East Bank Partnership's website: eastbankvillagepartnership.com. Mr. Kain offered a copy of the Master Plan after the meeting. Ms. Jones asked if there were any other comments at this time. Seeing none Ms. Jones closed the public hearing for whatever action the Commission wished to take. (2) Consideration of Resolution No. 2968. Upon a motion by Ms. King, seconded by COMMISSION APPROVED RESOLUTION No.2968 Mr. Downes and unanimously carried, the CONFIRMING A RESOLUTION EXPANDING THE Commission approved Resolution No. 2968 BOUNDARIES OF THE SOUTH BEND CENTRAL DEVELOPMENT UREA,EXPANDING THE confirming a resolution expanding the ALLOCATION AREA FOR PURPOSES OF TAX boundaries of the South Bend Central INCREMENT FINANCING AND AMENDING THE Development Area, expanding the allocation DEVELOPMENT PLAN FOR THE SOUTH BEND area for purposes of tax increment financing CENTRAL DEVELOPMENT UREA. and amending the Development Plan for the South Bend Central Development Area. 19 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) A. Public Hearings (3) Public Hearing on Resolution No. 2967 confirming a resolution amending the Development Plan for the Airport Economic Development Area and adding one or more parcels to the List of Parcels to be Acquired. Mr. Sikora noted that Resolution No. 2967 adds four parcels to the Airport Economic Development Area (EDA), the first being 401 N. Bendix, the Honeywell-owned property west of the existing Bosch facility. The other three parcels are in the 1300 block of S. Michigan. On October 25, 2011, the Commission approved Resolution No. 2950, a Declaratory Resolution to amend the Development Plan of this Area to allow for the potential acquisition and expenditure of funds on these parcels. On November 15, 2011, the St. Joseph County Area Plan Commission approved Resolution No. 222-11, which approved, ratified, and confirmed Resolution No. 2950, determining that it conforms to the plan of development for the city. On November 28, 2011, the South Bend Common Council, the municipal legislative body for the city, approved Resolution No. 4133-11, which approved, ratified, and confirmed the Area Plan Commission's Resolution No. 222-11. Resolution No. 2967 is the final step in the process to add these parcels to the acquisition list. 20 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) A. Public Hearings (3) continued... Mr. Inks noted for public record that the public hearing file is complete, containing: (1) a copy of Resolution No. 2950 amending the Development Plan for the Airport Economic Development Area and adding one or more parcels to the List of Parcels to be Acquired; (2) a copy of Area Plan Commission Resolution No. 222-11 approving declaratory Resolutions No. 2950 of the Redevelopment Commission; (3) a copy of South Bend Common Council Resolution No. 4133-11 approving declaratory Resolutions No. 2950 of the Redevelopment Commission; (4) a copy of the Notice of Hearing: (5) a copy of Resolution No. 2967; (6) an affidavit from Jacki Krolczyk, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on December 2, 2011; (7) an affidavit from Richard Andrysiak, Classified Manager of the Tri-County News, that the Notice of Hearing was published in that newspaper on December 2, 2011; (8) a statement from Matthew Sikora that on November 30, 2010 affected property owners and registered neighborhood associations were sent notice of the Public Hearing; (9) the mail was checked prior to this meeting. As of 3:00 p.m.., December 13, 2011, there were 0 written remonstrances received related to Resolution No. 2967 Ms. Jones opened the public hearing for whoever wished to speak regarding Resolution No. 2967. 21 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) A. Public Hearings (3) continued... DIMITRIOS VASILIADES: In what time frame would that property be acquired? MR. SIKORA: There is no specific time frame; it would be as development allows. In the case of 401 N. Bendix, if it would be necessary for the expansion of the existing Bosch facility, then the city would look into acquiring that. The parcels on 1300 S. Michigan would be as a development project came into play. MR. VASILIADES: Within ten years? MR. SIKORA: More like two to five years. Ms. Jones asked if there was anyone else who wished to speak regarding Resolution No. 2967. There being no one else who wished to speak, Ms. Jones closed the public hearing for whatever action the Commission wished to take. (4) Consideration of Resolution No. 2967. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2967 Mr. Varner and unanimously carried, the CONFIRMING A RESOLUTION AMENDING THE Commission approved Resolution No. 2967 DEVELOPMENT PLAN FOR THE AIRPORT ECONOMIC DEVELOPMENT AREA AND ADDING confirming a resolution amending the ONE OR MORE PARCELS TO THE LIST OF PARCELS Development Plan for the Airport Economic TO BE ACQUIRED Development Area and adding one or more parcels to the List of Parcels to be Acquired. (5) Public Hearing on Resolution No. 2969 confirming a resolution amending the Development Plan for the Northeast Neighborhood Development Area. 22 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) A. Public Hearings (5) continued... Mr. Inks noted that the public hearing file is complete, containing: (1) a copy of Resolution No. 2949 amending the Development Plan for the Northeast Neighborhood Development Area and adopting the Northeast Neighborhood Design Guidelines which was approved on August 26, 2009; (2) a copy of Area Plan Commission Resolution No. 224-11 approving declaratory Resolution No. 2949 of the Redevelopment Commission; (3) a copy of South Bend Common Council Resolution No. 4132-11 approving declaratory Resolution No. 2949 of the Redevelopment Commission; (4) a copy of the Notice of Hearing; (5) a copy of Resolution No.2969; (6) an affidavit from 7acki Krolczyk, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on December 2, 2011; (7) an affidavit from Richard Andrysiak, Classified Manager of the Tri-County News, that the Notice of Hearing was published in that newspaper on December 2, 2011; (8) a statement from Elizabeth Maradik that affected property owners and registered neighborhood associations were notified of the Public Hearing by Memorandum on November 30, 2011: and (9) the mail was checked prior to this meeting. As of 3:00 p.m., December 13, 2011 there were 0 written remonstrances received related to Resolution No.2969. Ms. Maradik noted that on October 25, 2011, the South Bend Redevelopment Commission 23 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) A. Public Hearings (5) continued... approved Declaratory Resolution No. 2949 amending the Development Plan for the Northeast Neighborhood Development Area. On November 15, 2011, the St. Joseph County Area Plan Commission adopted a resolution approving the Declaratory Resolution and the Plan Amendment. On November 28, 2011, the Common Council of the city of South Bend adopted a resolution approving the resolution of the Plan Commission. Ms. Maradik noted that Resolution No. 2969 revises sections of the existing Development Plan, updates the document and modifies existing plan exhibits in order for the Plan to better reflect the future goals for the area by taking into account recent, or soon to be completed, developments such as, but not limited to, Eddy Street Commons (Phase I and II), State Road 23 improvements, and the new Five Points Intersection configuration. The amendment will not modify the existing NNDA boundary. Ms. Jones opened the public hearing for whoever wished to speak regarding Resolution No. 2969. There was no one who wished to speak. Ms. Jones closed the public hearing for whatever action the Commission wished to take. 24 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) A. Public Hearings (6) Consideration of Resolution No. 2969. Upon a motion by Ms. King, seconded by COMMISSION APPROVED RESOLUTION No.2969 Mr. Downes and unanimously carried, the CONFIRMING A RESOLUTION AMENDING THE Commission approved Resolution No. 2969 DEVELOPMENT PLAN FOR THE NORTHEAST NEIGHBORHOOD DEVELOPMENT UREA. confirming a resolution amending the Development Plan for the Northeast Neighborhood Development Area. B. South Bend Central Development Area (3) Proposal for appraisal of 211 W. Washington Street. Mr. Inks noted that staff sent out a request for proposals to area MAI-certified appraisers on November 28 for conducting an appraisal of the parking garage portion of the Chase Tower(211 W Washington). David Waszak Appraisals and Michaels Appraisal Services responded with the two lowest-cost bids submitted, for $4400 and $5000, respectively. Staff requests approval of these Professional Services Agreements. Whether the city becomes involved in a transaction at that location, either before or after the end of the year, the parking garage would be the likely method of financially participating. It would be important to know the value of that structure, whether this deal for the Chase Tower proceeds or some subsequent project. Mr. Downes wondered if we wouldn't have to get the building reappraised at additional cost if this project does not go forward, if too much time passed before another project came forward. 25 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) continued... Mr. Varner asked how long the appraisal would be good for. Mr. Inks responded that the appraisals would be good for at least the next six to twelve months. Mr. Varner asked if there was a time line for providing these services. Mr. Inks responded 45 days. Mr. Varner asked what good would that do if action needs to be taken on an agreement by December 19. Mr. Inks replied that the development agreement would contemplate certain additional actions that would be completed before the end of January 2012. Commissioners did not want to pay for appraisals unnecessarily. They suggested approving the proposals contingent on Council approval of the development agreement on December 19. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE PROPOSALS FOR Ms. King and unanimously carried, the APPRAISAL OF THE 211 W.WASHINGTON Commission approved the proposals for STREET PARKING GARAGE,CONTINGENT UPON APPROVAL OF THE DEVELOPMENT AGREEMENT appraisal of the 211 W. Washington Street BY THE COUNCIL ON DECEMBER 19,2011 parking garage, contingent upon approval of the development agreement by the Council on December 19, 2011. (4) First Amendment to Agreement by and between the South Bend Redevelopment Commission and Memorial Hospital of South Bend, Inc. Mr. Sikora noted that when the Central 26 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued... Medical District was established in the South Bend Central Development Area, it was done with a 15 year life span. As we enter the last four years of this TIF area, staff has been partnering with Memorial Hospital to identify remaining infrastructure work around its campus that needs to be completed through the year 2015. Based on anticipated revenue for the remaining four years, three main projects have been identified. Actual revenue and construction costs could adjust how or when these projects move forward. The three main projects identified are: • New facades along the east side of Michigan Street, for a more cohesive look and feel to the campus (E. Blair Warner building and attached small brick bank building, Skyway Bridge, Skyway Building, Mar Main Pharmacy, old Nipsco building, and miscellaneous fencing and streetscape improvements between Navarre and Bartlett). • New parking lots on the east and west sides of the 400 block of N. Michigan Street(the old CJ's area on the west, and the old Pizza Hut area on the east) • The widening and enhancement of Bartlett Street between Michigan and Main streets, leading to Memorial's new main entrance, with the reconfiguration of parking lots to the north. 27 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued... These projects would be staged as follows: • 2012 —new parking lots on the west side of the 400 block N. Michigan, new facades on the Skyway Bridge and Skyway Building ($3,718,000 budget) • 2013 - new parking lots on the east side of the 400 block N. Michigan ($1,618,000 budget) • 2014 - Bartlett Street widening and enhancement, reconfiguration of parking lot($2,925,000 budget) • 2015 - remainder of facade work ($2,180,000 budget) These changes will dramatically enhance this important gateway into downtown South Bend, giving the Memorial campus a more cohesive look, and improving the Medical Mile image. The attached Plan Amendment between the Commission and Memorial Hospital outline this planning strategy. The original Agreement called for reconfiguration of the Main/Michigan Street"S" curve, which reconfiguration has been deleted and replaced by the above improvements. Staff requests favorable consideration of the Plan Amendment and planning strategy for the remaining years of the Central Medical District Development Area. Ms. King questioned whether the Commission doesn't identify specific projects at the beginning of each year to be 28 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued... completed with that year's TIF revenue and why would we do four years of planning for the Medical District. Mr. Inks responded that when the area was originally established there was a development agreement with Memorial Hospital that contemplated certain expansion of their facilities and certain improvements that would be done over time by the city. This is amending that agreement to cover the remaining period of the Central Medical District and how the remaining funds would be used in that area. So it is an extension of the original document and the resources. Ms. Jones asked if that would exhaust all the anticipated funds. Mr. Inks replied that it would. Mr. Varner asked if the TIF sunsets at that point in time. Mr. Inks replied that 2015 is the last year of the Central Medical TIF. Mr. Varner asked what the annual income to the TIF was. Mr. Inks responded that the most recent years have generated $1,740,000. Mr. Varner added that there is a lot of unspent TIF money in that account. Mr. Inks replied that there will be a little over $3 million remaining in cash at the end of this year and $1,740,000 to be collected in each of the next four years. Mr. Varner asked if when the district sunsets in 2015, that $1,740,000 will be distributed 29 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued... to the other taxing jurisdictions. Mr. Inks replied that it would. Ms. Jones asked what percentage of that Central Medical TIF is from Memorial Hospital. Mr. Inks responded that Memorial is the major contributor, but there are others. He doesn't know the breakdown. Ms. Jones' concern is that there might be other businesses in that TIF district that would like some improvements, but there won't be anything available for them. Mr. Inks responded that the agreement for use of the Medical TIF funds was with Memorial. If Memorial doesn't need all of the funds, they could be made available for other projects. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE FIRST Mr. Varner and unanimously carried, the AMENDMENT To AGREEMENT BY AND BETWEEN Commission approved the First Amendment THE SOUTH BEND REDEVELOPMENT COMMISSION AND MEMORIAL HOSPITAL OF to Agreement by and between the South SOUTH BEND,INC. Bend Redevelopment Commission and Memorial Hospital of South Bend, Inc. (5) Proposal for professional services related to Memorial Hospital area facade improvements. Mr. Sikora noted that on May 23, 2011, the Commission approved a professional services agreement with The Troyer Group for design studies of facade improvements along the eastern side of Michigan Street in the Memorial Hospital campus area. Concept designs have been selected, with the next phase of work being to finalize those 30 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (5) continued... designs, prepare construction bid specs, project bidding evaluation assistance, and construction oversight and closeout. The total cost for professional services by Troyer to complete these tasks is $175,000, plus reimbursables. Staff requests approval of this Professional Services Agreement, in a not-to-exceed amount of$185,000. Ms. King clarified that this was for the "first" phase and asked why we would design the second phase now. Mr. Sikora responded that Troyer has already done a significant part of the work. We will want both phases to be designed compatibly, so we'd like to have the entire design done now. The design work won't become out of date by 2015. The projects that will be done in 2015 will be the E. Blair Warner office building and the Mar-Main Pharmacy facades. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED PROPOSAL FOR Mr. Varner and unanimously carried, the PROFESSIONAL SERVICES WITH THE TROYER Commission approved Proposal for GROUP RELATED TO MEMORIAL HOSPITAL AREA FACADEIMPROVEMENTS. professional services with The Troyer Group related to Memorial Hospital area facade improvements. (6) Resolution No. 2987 approving and authorizing the execution of an Agency Agreement by and between the South Bend Redevelopment Commission and the City of South Bend, Indiana, Board of Public Works relating to the management of parking garages and on-street parking enforcement. 31 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (6) continued... Ms. Leonard-Inks noted that Resolution No. 2987 authorizes a Master Agency Agreement which transfers from the Board of Public Works to the Redevelopment Commission oversight of the Main/Colfax and Leighton Street Garages and On-Street Enforcement which are under the Board's purview. This action allows the Commission to award parking management services in a package with the Redevelopment Commission-owned Wayne Street Garage. Upon a motion by Ms. King, seconded by COMMISSION APPROVED RESOLUTION No.2987 Mr. Downes and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 2987 OF AN AGENCY AGREEMENT BY AND BETWEEN THE SOUTH BEND REDEVELOPMENT approving and authorizing the execution of COMMISSION AND THE CITY OF SOUTH BEND, an Agency Agreement by and between the INDIANA,BOARD OF PUBLIC WORKS RELATING South Bend Redevelopment Commission and TO THE MANAGEMENT OF PARKING GARAGES the City of South Bend, Indiana, Board of AND ON-STREET PARKING ENFORCEMENT Public Works relating to the management of parking garages and on-street parking enforcement. (7) Staff report on recommendation for parking management services in 2012 (Three garages and on-street enforcement). Ms. Leonard-Inks noted that on December 7, 2011, Commission President Marcia Jones, Commissioner Greg Downes and Mike Schmuhl (representing Mayor-elect Pete Buttigieg) interviewed four companies which submitted proposals for management of the city's three parking garages and on-street enforcement responsibilities. As a result of 32 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (7) continued... reviewing the proposals and conducting these interviews, the following analysis and recommendation was drafted by the interviewers: The top two proposals were submitted by Downtown South Bend, Inc. (DTSB) and Republic. Staff was requested to check with both of them to make sure a ONE year vs. a THREE year contract would not significantly alter either proposal. In general, each finalist stated they would be willing to work with the city to enter into a one year contract with extension options. The differences between the Downtown South Bend, Inc. proposal and that of Republic are quite clear: 1) DTSB is local, with a proven track record of customer service using the Ambassador program with Block by Block management company, people who are already on the ground downtown who are familiar with downtown South Bend. They will have the opportunity to be cross-trained and become more cost-efficient in the long run. They are known and favored by many downtown businesses, have many years of successful parking lot management, and offer the opportunity to coordinate and streamline management of three other downtown lots. The DTSB proposal is the ONLY proposal offering 24 hour/7 day safety and maintenance patrols, not only throughout downtown, but once per hour on every floor 33 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (7) continued... of each parking garage, and, most important of all, committed to integrating parking into the downtown South Bend overall experience to make it clean, safe, hospitable and professional for visitors, employees and business-owners. Their proposal is $40,000 less when you exclude personnel costs and $109,000 higher on personnel, for a net estimated difference of just under $70,000. 2) Republic is without any doubt the most technologically advanced parking management company with deeper pockets, more knowledge, resources and capabilities, presenting some cost-saving opportunities through the use of increased automation and potential purchasing power, lots of national experience in parking garage and parking lot experience, and lots of experience implementing and maintaining automatic equipment in order to reduce people costs. They also offer other consulting resources that would enable us to better measure who is parking where and for how long and, with that information, better enable us to steer parkers to the most cost-efficient locations and maximize the use of our available parking spaces. Ms. Leonard-Inks noted that the interviewers strongly recommend we offer a one year contract to DTSB, with an option to non- renew or extend the contract for two more years with 90 days notice. It is time we pay more attention to customer service than to anything else, including cost, but feel 34 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (7) continued... strongly that we can reduce those costs over time with the right people creating and maintaining a better, safer cleaner, more user-friendly environment through cooperation and coordination. It is further recommended specific goals and performance measurements be developed during the next couple weeks. These would then be included in the contract as benchmarks for contract extension(s). Mr. Varner asked Mr. Perri whether DTSB is prepared to take on this additional, large task. Mr. Perri responded that his team looked at managing the on-street parking and garages as part of the total downtown experience. DTSB put together the DTSB Parking Promise that guarantees to deliver a safe, clean, professional, and hospitable parking program that engages its users. Techniques and staff already in place bring their knowledge and expertise to partner with our relationships and vision to deliver a cohesive plan that compliments and enhances the downtown parking experience. Mr. Varner asked how a patron avoids having to move their car every two hours? Mr. Perri replied that some things are already creatively in place to make sure the two hour spots are reserved for the customers and visitors to downtown. Mr. Downes stated that DTSB was in the best position to make a difference in this regard. 35 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (7) continued... DTSB has the backing of many established downtown business owners already; they have great relationships, and the ability to coordinate this parking management with the other three parking lots they manage. Upon a motion by Mr. Downes, seconded by COMMISSION ACCEPTED THE PROPOSAL FROM Ms. King and unanimously carried, the DOWNTOWN SOUTH BEND,INC.FOR PARKING Commission accepted the proposal from MANAGEMENT SERVICES IN 2012(THREE Downtown South Bend, Inc. for parking GARAGES AND ON-STREET ENFORCEMENT) management services in 2012 (three garages and on-street enforcement). (8) Authorization requested for Director of Redevelopment or the President of the Redevelopment Commission to sign Contract for Parking Management. Ms. Leonard-Inks noted that staff has prepared a draft contract for the management of parking services for the city's three garages and the on-street enforcement. The document is "draft" because the award of these services had not yet been made by the Commission so we were not yet ready to enter the name(s) of the other party(ies). The current contract for parking services of the garages expires January 31, 2012, and the next business meeting of the Commission is not until January 24, 2012. So, we respectfully request the Commission authorize Ms. Jones or Mr. Inks to sign on the Commission's behalf upon final legal revisions to satisfy the Commission's award provisions. This will allow the new management company to work with the 36 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (8) continued... current one to affect a smooth transition by February 1, 2012. Mr. Downes asked if the goals and performance measurements will be a side agreement, or do they have to be part of the contract. Mr. Meteiver responded that staff can create it either way. If there are goals we know of at the time we enter into the contract, we can put those in the contract, or we can provide in the contract that the parties will agree upon goals/standards in the future. Mr. Inks stated his preference to have them in the contract itself. Upon a motion by Ms. King, seconded by COMMISSION APPROVED THE CONTRACT FOR Mr. Varner and unanimously carried, the PARKING MANAGEMENT SUBJECT TO LEGAL Commission approved the Contract for REVIEW AND AUTHORIZED THE DIRECTOR OF REDEVELOPMENT OR THE PRESIDENT OF THE Parking Management subject to legal review REDEVELOPMENT COMMISSION TO EXECUTE THE and authorized the Director of CONTRACT. Redevelopment or the President of the Redevelopment Commission to execute the contract. (9) First Amendment to Parking Lease with Central High Associates, LLC (Central High Apartments). Mr. Inks noted that Items 6.13. (9), (1)0 and (11) are all related to Central High Associates, LLC and suggested the explanation for each be combined here. Mr. Meteiver explained that earlier in 2011 the operators of the Stephenson Mill 37 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (9) continued... Apartments and the Central High Apartments embarked upon a refinancing of both of those projects. As a requirement of the refinancing, HUD has required the existing parking lot lease associated with each project be converted to an easement, at a term to match the term of the new financing. The Stephenson Mill Apartment conversion project was completed a couple of months ago and this Commission approved that set of documents. Before the Commission now are the Central High Apartments conversion documents. These are similar to the Stephenson Mill documents accept that these contain a payment string to the Commission. Under the original parking lot lease, there was a buy-out at the end of the lease term. Because this new conversion and easement goes beyond that original term, we have negotiated an amortization of that original buy-out. The owners will make a $100,000 down payment and a stream of payments over the next 35 years of$5,686 per year. He asked for approval of the documents. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED FIRST AMENDMENT TO Mr. Varner and unanimously carried, the PARKING LEASE WITH CENTRAL HIGH Commission approved First Amendment to ASSOCIATES,LLC(CENTRAL HIGH APARTMENTS). Parking Lease with Central High Associates LLC (Central High Apartments). (10) Easement Conversion Agreement with Central High Associates LLC (Central High Apartments). 38 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (10) continued... Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE EASEMENT Mr. Varner and unanimously carried, the CONVERSION AGREEMENT WITH CENTRAL HIGH Commission approved the Easement ASSOCIATES LLC(CENTRAL HIGH Conversion Agreement with Central High APARTMENTS. Associates LLC (Central High Apartments). (11) Easement Agreement with Central High Associates, LLC. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE EASEMENT Mr. Varner and unanimously carried, the AGREEMENT WITH CENTRAL HIGH ASSOCIATES, Commission approved the Easement LLC. Agreement with Central High Associates, LLC. (12) Notice of Renewal of Agreement (Commercial Property Management Agreement with CB Richard Ellis). Ms. Jennings noted that the Commission's agreement with CB Richard Ellis for management of the Redevelopment Retail properties expires January 31, 2012 and needs to be renewed. The terms of the agreement will remain the same from February 1, 2012, through January 31, 2013. Staff recommends approval of the Notice of Renewal of Agreement for the management of Redevelopment Retail properties by CB Richard Ellis. Upon a motion by Ms. King, seconded by COMMISSION APPROVED THE NOTICE OF Mr. Downes and unanimously carried, the RENEWAL OF AGREEMENT(COMMERCIAL Commission approved the Notice of Renewal PROPERTY MANAGEMENT AGREEMENT WITH of Agreement (Commercial Property CB RICHARD ELLIS). Management Agreement with CB Richard Ellis). 39 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (13) Staff report on disposition of 502 Western Ave., the former Harmon Auto Glass. Mr. Sikora noted that on June 14, 2011, the Redevelopment Commission approved the bid specs, fair-market valuation ($45,000), and advertising of legal notices to begin the disposition process for 502 Western Ave. At the July 12, 2011 Redevelopment Commission meeting, staff reported that no conforming bids had been received and that the property would thus be able to be sold at a negotiated price. Staff has received a proposal from Monroe Circle Community Center(MC3), a non- profit entity of Entermission Inc. and serving the South Bend community, whose mission is "to encourage and help each person discover their worth for the purpose of developing a vibrant, safe and strong community with strong families." The framework for the center's activities is expressed by the acronym VALUE—Vocational, Art expression, Leadership and spiritual development, Unique heath& wellness, and Education empowerment. MC3's plans for the Harmon glass site focus on the Vocational component of its mission and consist of multiple phases. Phase I includes the renovation of the existing building to serve as a"Carpenter's Hands" center of operations to mobilize the community at-large to volunteer and/or donate for various community construction projects, while mentoring and teaching basic trade skills to community residents. The 40 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (13) continued... program has just completed a renovation of the 747 Center for the Homeless project for homeless veterans. The timeline for completion of Phase I is July 2012. We propose to sell the former Harmon Glass property to MC3 for the nominal amount of $10, and in exchange MC3 will make the improvements, as proposed, (and in keeping with the successful renovations of its adjoining properties). The services proposed within this site, along with the services currently offered at the MC3's existing buildings, are open to the entire South Bend community and are of value to our citizens. The amount of the proposed improvements is approximately $30,000. If the Commission was to demolish the building, the cost would be between $35,000 and $50,000 depending on environmental issues that may be found at the site. Staff feels the proposal by MC3 is an appropriate use of the site and would be a good partnership for the city and MC3. Staff requests Commission approval of the proposal from Monroe Circle Community Center and authorization for staff and legal counsel to prepare the necessary documents to complete the transaction. The completed documentation will return to the Commission for final approval and signature. Mr. Varner questioned whether we're recognizing up front that there are environmental concerns and will provide 41 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (13) continued... indemnifications to MC3. Mr. Sikora stated we are working through those issues. Mr. Varner asked if there will be a cost for that. Mr. Sikora responded that there will not be a cost in Phase I. Upon a motion by Ms. King, seconded by COMMISSION ACCEPTED THE PROPOSAL FROM Mr. Downes and unanimously carried, the MONROE CIRCLE COMMUNITY CENTER FOR Commission accepted the proposal from DISPOSITION OF 502 WESTERN AVE,THE FORMER HARMON AUTO GLASS.AND DIRECTED Monroe Circle Community Center for STAFF TO PREPARE THE NECESSARY DOCUMENTS disposition of 502 Western Ave, the former Harmon Auto Glass. And directed staff to prepare the necessary documents. (14) Lease Proposal for 121 N. Michigan Street (Metronet). Ms. Jennings outlined the terms for the lease of 121 N. Michigan Street to the St. Joe Valley Metronet. The space is the former Spark Design Studio. The St. Joe Valley Metronet will use the 1,423 sft for a local office and customer interface location for Metronet Zing. The term of the lease is forty-eight (48) months, commencing immediately upon full lease execution, estimated to be January 1, 2012. The tenant shall have renewal options: so long as tenant is not in default, tenant shall have the option to extend for two (2)terms of three (3)years each. During each renewal term, rent shall increase by a flat 3% over the previous term. 42 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (14) continued... The Base Rent shall be abated for the first twelve (12) months. Thereafter, tenant shall pay $8.25 per sq. ft. for year one, $8.50 per sq. ft. in year two and $8.75 per sq. ft. in year three. The tenant shall pay its pro-rata share of CAM charges in addition to base rent as further defined in a lease. CAM charges will be based on actual expenses to maintain the property, including real estate taxes, property insurance, etc., which are incurred for each operating calendar year, not to exceed $4 per sq. ft. per year for the first year. CAM shall be capped at 3% annual increases thereafter. Tenant shall pay for its own utilities from date of possession, which shall be separately metered and billed directly to tenant. The Commission shall deliver the space "as- is." Tenant shall be responsible for the cost of tenant's build-out. Tenant improvements shall be subject to landlord review. Such review shall not be unreasonably withheld. The tenant shall be responsible for all interior maintenance which shall be further defined in the lease. A security deposit equal to one (1) month base rent shall be due upon lease signing. The tenant shall be allowed to place its sign on the facade of the building at tenant's sole cost and expense. Said sign shall comply with all municipal code regulations and landlord's sign specifications. Written approval of landlord shall be obtained prior to any sign 43 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (14) continued... installation. The Commission shall provide two parking spaces in Leighton Plaza Parking Garage at a discount of$15 per space per month. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE LEASE PROPOSAL Ms. King and unanimously carried, the FOR 121 N.MICHIGAN STREET(ST.JOE VALLEY Commission approved the Lease Proposal for METRONET). 121 N. Michigan Street(St. Joe Valley Metronet). 6. NEW BUSINESS C. Airport Economic Development Area (1) Real Estate Option Agreement for 3408 Ardmore Trail (former St. Vincent DePaul). Mr. Sikora noted that 3408 Ardmore Trail was added to the Airport Economic Development Area Acquisition List by Resolution No. 2875 on July 12, 2011. This property consists of 8 acres, with a one story, 83,000 square foot retail building. If the Commission exercised its option to acquire this property, it would allow consolidation with the abutting 8.7 acres owned by the Commission, making a larger, more marketable property for redevelopment. Resolution No. 2958 sets the acquisition value of the property at $732,500, the average value as determined by two independent appraisals. 44 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... Specifics of the Option Agreement are: • $180,000 initial option payment • annual option renewal dates of December 15, 2012—2014 • $138,125 annual option payment • exercise option in 2015 with payment of$138,125 • all option payments to be applied to the acquisition price • if right of first refusal is not exercised, past payments are to be refunded. Staff believes this Option Agreement will continue the forward momentum occurring in the LaSalle Square area, and requests Commission approval of Resolution No. 2958 and the Real Estate Option Agreement. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE REAL ESTATE Mr. Varner and unanimously carried, the OPTION AGREEMENT FOR 3408 ARDMORE TRAIL Commission approved the Real Estate Option (FORMER ST.VINCENT DEPAUL). Agreement for 3408 Ardmore Trail (former St. Vincent DePaul). 6. NEW BUSINESS C. Airport Economic Development Area (5) Proposal for architectural study of Bosch buildings. Mr. Inks noted that staff requested Architecture Design Group (ADG) perform 45 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (5) continued... architectural services to the existing Bosch buildings and real estate because of a possible reuse of the building by an interested party. ADG did the initial study of the Bosch facility for the Commission at a cost of$5,000. As talks continued with the interested party, ADG spent much additional time with department staff, Cressy & Everett, Bosch personnel, and the interested party to determine the feasibility of a possible move. The time frame in which this work needed to be done was short, to meet deadlines for a decision to be made, which is still ongoing. The work completed by ADG helps the department understand the Bosch's buildings possibilities, and will be of value under any scenario. Staff requests approval of ADG's Summary of Completed Architectural Services in the amount of$23,825.60, for the vast amount of time spent and drawings completed on this one-of-a-kind building and property. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE SUMMARY OF Ms. King and unanimously carried, the COMPLETED ARCHITECTURAL SERVICES IN THE Commission approved the Summary of AMOUNT OF$23,825.60 Completed Architectural Services in the amount of$23,825.60. (6) Proposal for professional services agreement for services related to acquisition of tax sale properties (713 W. Indiana and 1521 S. Catalpa). Mr. Sikora noted that at the March 2010 46 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (6) continued... County Commissioner's tax sale, staff acquired 30 parcels. Seven of these parcels were redeemed within the legal redemption period, leaving 23 parcels which the Commission now has title to in the form of tax deeds. On March 8, 2011, the Commission approved a Professional Services Agreement with Heppenheimer& Korpal to do quiet title actions on 14 of the 23 parcels. These 14 parcels were identified by Meridian Title as needing this step before title insurance policies could be issued. In the process of issuing title insurance on the 23 parcels, two additional parcels have been identified as needing quiet title action. The cost for these two additional parcels will be the same as that paid for the original 14, or: $750 per parcel for the quiet title action $156 per parcel Court filing fee In addition to these fixed charges, there will be publication and certified mailing charges. Once this process is completed, Meridian Title will issue the Commission title policies on these parcels, and the Commission can be assured of its ownership interest in them. Staff asks for a not-to-exceed amount of $2,112 (allowing $150 publication/ mailing costs for each parcel), providing the Commission an insurable interest in these properties 47 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (6) continued... Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE PROPOSAL FOR Ms. King and unanimously carried, the PROFESSIONAL SERVICES AGREEMENT FOR Commission approved the proposal for SERVICES RELATED TO ACQUISITION OF TAX SALE PROPERTIES(713 W.INDIANA AND 1521 S. professional services agreement for services CATALPA . related to acquisition of tax sale properties (713 W. Indiana and 1521 S. Catalpa). Ms. Jones reminded Mr. Inks that the Commissioners asked to make this type of item one that staff can approve and bring to the Commission for ratification. (7) Administrative Settlement for 1521 S. Kemble. Mr. Sikora noted that on October 25, 2011, the Commission approved Resolution No. 2946, setting the acquisition offering price for 1521 S. Kemble at $45,500, the average of two appraisals. Staff has been working with the property owner since that time, to reasonably reach an agreement to acquire this property and relocate her and her son. This property is a large duplex, each unit with two bedrooms and one bath. It was purchased in 2004 for $85,000, from proceeds of a settlement from the minor child's father's death. Under our relocation policy, an additional $13,500 is eligible as a housing replacement payment to move this property owner into a decent, safe, and sanitary home. The owner and her son have found another home they 48 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (7) continued... consider suitable, but the price is $69,900. An administrative settlement of$10,900 is needed to purchase it. Two houses in the same immediate area (one next door and one across the street)were acquired for $65,000. Staff feels this administrative settlement is reasonable compared with other acquisitions in this area, and requests Commission approval. Upon a motion by Ms. King, seconded by COMMISSION APPROVED THE ADMINISTRATIVE Mr. Downes and unanimously carried, the SETTLEMENT FOR 1521 S.KEMBLE IN THE Commission approved the Administrative AMOUNT OF$69,900. Settlement for 1521 S. Kemble in the amount of$69,900. (8) Administrative Settlement for 701 W. Indiana Ave. Mr. Inks asked that item 6.C.(8) be tabled. Upon a motion by Mr. Downes, seconded by COMMISSION TABLED ADMINISTRATIVE Mr. Varner and unanimously carried, the SETTLEMENT FOR 701 W.INDIANA AVE. Commission tabled Administrative Settlement for 701 W. Indiana Ave. (9) Temporary Use Agreement with Unity Gardens at LaSalle Square. Mr. Kain noted that Unity Gardens, Inc. is a non-profit organization that strives to improve community health by connecting the community to locally grown produce. In addition to growing food throughout the county, Unity Gardens has developed 49 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (9) continued... educational curriculum designed to help people learn how to grow, harvest, preserve, prepare and eat fresh produce. Unity Gardens currently utilizes two adjacent parcels of land in the LaSalle Square area as community gardens. They have a one year revolving temporary use agreement with the Redevelopment Commission to use this land for the above stated purpose. Unity Gardens wishes to expand the educational programs, add a second outdoor shelter and purchase a tool shed to store equipment within the next year. Additionally, Unity Gardens has received a Community Foundation matching grant in the amount of $15,000 to support its activities. Unity Gardens is asking the Redevelopment Commission to consider a new temporary use agreement to include some relocation expenses if the garden has to be moved in favor of a development project on the site. Staff requests approval of the attached temporary use agreement with a 5 year term and relocation expenses not to exceed $10,000 in the event that the garden has to be relocated for a development opportunity. Upon a motion by Ms. King, seconded by COMMISSION APPROVED THE TEMPORARY USE Mr. Downes and unanimously carried, the AGREEMENT WITH UNITY GARDENS AT Commission approved the Temporary Use LASALLE SQUARE FOR A 5-YEAR TERM AND RELOCATION EXPENSES NOT-TO-EXCEED Agreement with Unity Gardens at LaSalle $10,000. Square for a 5-year term and relocation expenses not-to-exceed $10,000. 50 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (10) Listing Contract Amendment with Grubb & Ellis/Cressy & Everett for 401 N. Bendix (Bosch facility). Mr. Inks noted that the original Listing Contract only provided for a sale of the property. It has become apparent as we meet with prospects that we may need to consider lease options. The attached Amendment to Listing Contract incorporates language to cover this possibility. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE LISTING Mr. Varner and unanimously carried, the CONTRACT AMENDMENT WITH GRUBB& Commission approved the Listing Contract ELLIS/CRESSY&EVERETT FOR 401 N.BENDIx Amendment with Grubb & Ellis/Cressy & (BOSCH FACILITY). Everett for 401 N. Bendix (Bosch facility). (11) Filing of Resolution No. 2985 and setting a public hearing for 4:00 p.m., January 24, 2011 on Resolution No. 2985 (Appropriating monies for Redevelopment Retail Operations Budget). Mr. Inks noted that items 6,C.(11) and (12) both set public hearings for January 24, 2012, at 4:00 p.m. Resolution No. 2985 appropriates funds for the operations budget of Redevelopment Retail properties and Leighton Plaza beginning January 1, 2012, and ending December 31, 2012. Upon a motion by Mr. Downes, seconded by COMMISSION ACCEPTED RESOLUTION No.2985 Mr. Varner and unanimously carried, the FOR FILING AND SET A PUBLIC HEARING FOR Commission accepted Resolution No. 2985 4:00 P.M.,JANUARY 24,2011 ON RESOLUTION No.2985(APPROPRIATING MONIES FOR for filing and set a public hearing for REDEVELOPMENT RETAIL OPERATIONS 4:00 p.m., January 24, 2011 on Resolution BUDGET). 51 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (11) continued... No. 2985 (Appropriating monies for Redevelopment Retail Operations Budget). (12) Filing of Resolution No. 2986 and setting a public hearing for 4:00 p.m., January 24, 2011 on Resolution No. 2986 (Appropriating monies for Blackthorn Golf Course Operations Budget). Mr. Inks noted that Resolution No. 2986 appropriates funds for the operations budget of Blackthorn Golf Course beginning January 1, 2012, and ending December 31, 2012. Upon a motion by Mr. Downes, seconded by COMMISSION ACCEPTED RESOLUTION No.2986 Mr. Varner and unanimously carried, the FOR FILING AND SET A PUBLIC HEARING FOR Commission accepted Resolution No. 2986 4:00 P.M.,JANUARY 24,2011 ON RESOLUTION No.2986(APPROPRIATING MONIES FOR for filing and set a public hearing for BLACKTHORN GOLF COURSE OPERATIONS 4:00 p.m., January 24, 2011 on Resolution BUDGET) No. 2986 (Appropriating monies for Blackthorn Golf Course Operations Budget). (14) Resolution No. 2971 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Mayflower/Hutsfield Square Infrastructure Project). Mr. Sikora noted that the purpose of this amendment is to add supplemental funds to an existing contract with Abonmarche to continue to provide project oversight and inspection related to both the sewer and roadway construction projects until the completion of the project. The original 52 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (14) continued... Addendum to Master Agency Agreement authorized a contract with Abonmarche to provide Project Oversight/Inspection of the project in the amount of$86,740. The purpose of the contract was to allow an additional (outside) inspector to be in the field to deal with project construction issues. Based on the complexity of the project, the service was well worth the expense, but we need some additional funding to provide additional inspection services to close out the sewer and road project and complete all required closeout documentation. Staff requests approval of Resolution No. 2971. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2971 Ms. King and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 2971 OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT approving and authorizing the execution of (MAYFLOwER/HUTSFIELD SQUARE an Amendment to the Addendum to the INFRASTRUCTURE PROJECT). Master Agency Agreement (Mayflower/Hutsfield Square Infrastructure Proj ect). H. Other (1) Resolution No. 2974 setting a public hearing on the appropriation of tax increment financing revenues from various allocation areas for the payment of certain obligations and expenses related to their respective allocation areas and other related matters. Mr. Inks noted that Resolution No. 2974 sets a public hearing on the 2012 appropriation 53 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) H. Other (1) continued... resolutions for each of the TIF funds. The amounts listed in this resolution and subsequent public hearing notice, are intended to be high and will likely be revised downward when we bring forward the actual appropriations for public hearing on January 24, 2012, at 4:00 p.m. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2974 Ms. King and unanimously carried, the SETTING A PUBLIC HEARING FOR 4:00 P.M., Commission approved Resolution No. 2974 JANUARY 24,2012,ON THE APPROPRIATION OF TAX INCREMENT FINANCING REVENUES FROM setting a public hearing for 4:00 p.m., VARIOUS ALLOCATION AREAS FOR THE PAYMENT January 24, 2012, on the appropriation of tax OF CERTAIN OBLIGATIONS AND EXPENSES increment financing revenues from various RELATED TO THEIR RESPECTIVE ALLOCATION allocation areas for the payment of certain AREAS AND OTHER RELATED MATTERS. obligations and expenses related to their respective allocation areas and other related matters. L Ratification of Services Contracts Commission Role in Service Contract Staff Transaction Contractor Provided Amount Member 2.4 acre parcel Acquisition David Waszak Appraisal $3,200 Schalliol west of Bruno's Appraisals Upon a motion by Mr. Downes, seconded by Mr. COMMISSION RATIFIED THE SERVICES Alford and unanimously carried, the Commission CONTRACTS. ratified the Services Contracts approved by staff since November 22, 2012. 54 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) F. Northeast Neighborhood Development Area (1) Resolution No. 2973 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Eddy Street Corridor Conceptual Streetscape Study). Mr. Kain noted that on October 25, 2011 the Redevelopment Commission approved a proposal from DLZ to conduct a conceptual streetscape study for the Eddy Street Corridor from Campeau to Colfax. The proposal amount approved was $21,375. The Eddy Street Corridor plan will look at streetscape improvements to Eddy St. within and beyond the public right-of-way outside of the street pavement and include: • Replacement of curb, sidewalk and ADA compliant sidewalk ramps • Replacement of streetlights to match the SR23 project • Introduction of a tree lawn along the East and West sides of the street • Replacement of street signs to match Eddy Street Commons. The attached resolution and addendum to the Master Agency Agreement will allow the Board of Public Works to engage in design development discussions and assist DLZ with project bidding, award contacts and manage infrastructure construction to completion. Staff requests approval of Resolution No. 2973. 55 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) F. Northeast Neighborhood Development Area (1) continued... Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.2973 Mr. Alford and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 2973 OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT(EDDY STREET CORRIDOR approving and authorizing the execution of CONCEPTUAL STREETSCAPE STUDY)IN THE an Addendum to the Master Agency AMOUNT OF$21,375. Agreement (Eddy Street Corridor Conceptual Streetscape Study) in the amount of$21,375. E. South Side Development Area (1) Resolution No. 2972 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Fellows Street Corridor Improvement Project— Supplement #1). Mr. Sikora noted that over the last several months, city staff has been working to finalize design plans for the Main-Lafayette Connector project that will aid in traffic circulation in the area west of Michigan Street between Chippewa and Ireland. City staff has also been working on street and intersection improvements on Ireland Road at High Street and doing related storm water management work at the Erskine Plaza Ponds located north of Erskine Plaza. In April, the Commission approved the original addendum for this project which authorized the Board of Public Works to hire Christopher B. Burke Engineering Ltd. to help staff coordinate study of the traffic circulation of Fellows and Ireland and Fellows Street north to Chippewa. The 56 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) E. Southside Economic Development Area (1) continued... purpose of this infrastructure study was based on the INDOT plan to construct a bridge over the US 20 Bypass and build a new connector roadway on the Fellows Street alignment from Gilmer Park south of the bypass to the intersection of Ireland and Fellows. The state anticipates that roadway to be completed in 2013. Resolution No. 2972 is related to Phase 2 of the project study and design services for improvements and connectivity of Fellows Street north of Ireland Road to Chippewa Avenue. The attached Phase 2 proposal will segment work into three phases and do the following work: 1. Design Services 2. Rule 5 Permit (IDEM) 3. Bid Services The next major professional service associated with this project will be right of way acquisition services and it is anticipated that a proposal for that work will be presented to the Commission in the coming months. Staff requests approval of Resolution No. 2972. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2972 Mr. Downes and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 2972 OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT(FELLOWS approving and authorizing the execution of STREET CORRIDOR IMPROVEMENT PROJECT- an Amendment to the Addendum to the SUPPLEMENT#1)IN THE AMOUNT OF$185,000. Master Agency Agreement (Fellows Street Corridor Improvement Project— Supplement #1) in the amount of$185,000. 57 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) E. Southside Economic Development Area (1) continued... Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2972 Mr. Downes and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 2972 OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT(FELLOWS approving and authorizing the execution of STREET CORRIDOR IMPROVEMENT PROJECT- an Amendment to the Addendum to the SUPPLEMENT#1) Master Agency Agreement (Fellows Street Corridor Improvement Project— Supplement #1) Mr. Inks noted that the 4th floor Council Chambers is needed for another meeting at 5:45. The Commission needs to suspend its meeting, move to the 13th floor conference room, and reconvene there. Upon a motion by Mr. Varner, seconded by Mr. Downes COMMISSION SUSPENDED ITS MEETING TO MOVE and unanimously carried, the Commission suspended its TO THE 13TH FLOOR CONFERENCE ROOM meeting to move to the 13th floor conference room. Upon a motion by Mr. Varner, seconded by Ms. King COMMISSION RECONVENED ITS MEETING IN THE and unanimously carried, the Commission reconvened 13TH FLOOR CONFERENCE ROOM its meeting in the 13th floor conference room. 6. NEW BUSINESS C. Airport Economic Development Area (2) Presentation by BSA LifeStructures on Ignition Park Master Plan. Ms. Hathaway noted that tech parks are prevalent around the world. When she was hired by the Redevelopment Commission, she felt that she needed to determine how South Bend's tech park would differentiate itself from the rest for marketing purposes. 58 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) continued... She came to feel that South Bend's distinction was its Public Works director, Gary Gilot, the prototyping he was doing based on Notre Dame discoveries, and the implementation of innovative solutions he was bringing national recognition to South Bend for. She felt that Ignition Park needed to carry that story forward. She looked for a architectural and engineering firm that could design Ignition Park with that kind of innovative ecosystem, a firm whose strength was in engineering. Mr. Gilot introduced her to BSA LifeStructures. She also felt that Notre Dame needed to be happy with the selection also, since the tech park was jointly established with Notre Dame. They were fully supportive of the choice of BSA. BSA had done Remick Hall and its clean room, and the IU Med Center expansion. So the Commission hired BSA LifeStructures to work on a master plan for Ignition Park. Ms. Hathaway feels that BSA has exceeded her expectations. Not only is the master plan a great land plan, but it uses the natural entrances to the park, creates a center focus, so that at some point in time when we have an iconic building in the center of the park, it will be visible from all four entrances. This plan really addresses the environment. It addresses the city's opportunity to be green, but in a respectful way toward the tenants of the park and for the financial return on that investment. Mr. Chris Lake, BSA, noted that BSA looked 59 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) continued... at the sustainability efforts that Public Works has been working on and how it could fold those into the marketability of the park. BSA came up with the urban forest concept, envisioning a parallel with the way a forest recycles and sustains itself. They want to incorporate the sustainable technologies coming out of Public Works, Notre Dame and the State of Indiana, to not only sustain the park, but to attract companies through the resulting lower lease rates or lower utility rates the park could provide with those ecosystems. Mr. Dan Miles stressed again that the goals of the park are innovative infrastructure, integrated sustainable components, and low lease rate. The core center feature of the park is the Accelerator Building and also the Renewable Energy Center, which was in the Master Plan as a sustainable component. Mr. Lake added that the goal was to create the circle center feature that all of the spines culminate into. It is also the hub for the sustainable functions of the park. They have proposed a renewable energy center and a catch-basin for storm water run-off in order to not further tax the city's storm water system. They would capture that storm water and redistribute it for irrigation or make-up water for grey water systems which reduces the need for municipal water, as well. Then, to make this a marketable feature, they proposed the center icon which will be the 60 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) continued... Accelerator Building. That icon develops a vocabulary that's used throughout the park. This building will attract tenants, inspire developers to do something more than a box building, and will add to the development and image of downtown. It would be a built portrayal of high tech innovation. This building requires visioning and a conceptual image that can be sold from a marketing standpoint, but that we can also afford to built, and can easily construct as a template for future developers on the site. The urban forest was the concept, to look at the sustainability of the core and creating a symbiotic ecosystem. Mr. Lake pointed out the features on the rendering, all culminating in the center traffic circle. Another rendering view of the park showed a center spire that would showcase sustainability. It could have a wind spire in it. It could have some photo voltaic rays, if that spire comes down to harvest energy from the sun which would help to offset the power needs in the park. Icons on the rendering that appear to be trees are proposed solar trees that would have photo rays on them that would collect the sun's energy. They are an artistic portrayal of the urban forest, but they would be functional. That's the key. We want to represent the form, but we also want it to be functional. If it doesn't help the ecosystem, then we're not going to put it there. As far as land use planning for the site, we 61 South Bend Redevelopment Commission Regular Meeting–December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) continued... considered the highest and best use for the lots. There are technology, engineering training offices represented, and educational hubs at the forefront of the park, and in the center which is the heart of the park(tying in workforce development, education, entrepreneurship and innovation). They show related facilities on the fringe such as eateries, printing capabilities and other service facilities. On another drawing, he pointed out existing businesses. They show two pedestrian spawns coming into the park that will also direct rainwater into canals, there will also be solar and wind harvesting technology located throughout those boulevards. They've reserved areas for sustainable functions there's talk about a carbon-capture plan to the park and utilizing some of the space on the south for that, as well as geothermal. They key is the technology space and the advance manufacturing core with the rapid prototyping that would occur in those spaces. Mr. Miles noted that in an innovation park you want a mixture of types of businesses. You want businesses that can support each other and build off of each other. He said it is amazing in the tech parks how entrepreneurial all the businesses are—so willing to use one company's technology to better another company's technology. Mr. Varner asked if BSA could give the Commission some examples of that kind of 62 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) continued... innovation within existing parks they are familiar with. Mr. Lake responded that that is happening at Innovation Park. Also, BSA is a member of the National Business Incubator Association. He doesn't have company names, but BSA goes to conferences annually and it's a very common theme that incubator managers talk about how company A lent its technology to company B which becomes a spin off company and the sum is better than the individual parts. The way to get that kind of sharing of innovation is to get a mixture of types of research companies. That's what we're trying to do with a"forest" concept. Mr. Miles said that the trees portray sustainability. They don't power buildings, they power themselves. BSA would use them as a marketing strategy; something that emanates sustainability for the future. The rainwater harvesting is sustainable, and also saves money to the City of South Bend. At the highest level sustainability is what BSA presented as CCHP in the Master Plan: Combined Cooling, Heating & Power. We need to make a decision today as to whether CCHP is the right thing for this park. We'd like to know this before the first tenants come into the park. We need to build the infrastructure into the park up front. What CCHP does is centralize equipment in the Renewable Energy Center, for redistribution of electrical, chilled water, and heating hot water to all facilities. It can be done in 63 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) continued... phases, as long as the infrastructure is laid first. We were considering a first phase just being a leg of the loop, and then a second phase and then a third, i.e., able to distribute in increments the first costs the city might bear. Also with that is the modular approach of the equipment. Fairly expensive equipment, quite frankly, the turbines that make this up, the absorption chillers, modularizing that so that we can grow that equipment as we get tenants. What CCHP does is it brings reliable energy to Ignition Park tenants, which means now those research or important clients, data centers, whatever they might be, they have inherently, intrinsically, backup power that the city can market when it solicits tenants. It can say, "you don't need your first costs on generators. You can provide backup cooling, but we already have a base value of cooling in this park, as well as a base value of heating. So the park can be promoted to the tenants that their first costs will be 5-8 percent. They don't need to provide their own generators, chillers, heaters or boilers. Mr. Downes added that it is an important point to make though that we shouldn't be ashamed to have eye candy out there and to identify it as such. It's a marketing decision. Mr. Lake noted that's its key to a developer, its not only a first cost for a developer, but it's the on-going maintenance that a developer has to pay to support having chillers and boilers in their building. It's 64 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) continued... pretty substantial. The park is taking that away from them. The goal is you're looking at that upfront in your cost payback analysis. You're not just looking at the cost of the equipment. When you run the payback analysis you have to consider operations and maintenance in that entire total cost model. Mr. Varner questioned the source by which the city provides lower rent: it's the city subsidizing the rent by providing the ecosystem at its own expense. Mr. Lake replied that on the front end yes, but it becomes a revenue stream at a point as well. If it makes you money, it's sustainable. Mr. Miles added that the city could decide to recoup the 5-8 percent through a connection charge or by some other means. The city would make a business plan for sustainability. Mr. Lake noted that CCHP is an 80 percent efficient process where distributed energy from the utility companies is closer to 38 percent. Projecting rising electrical rates on an expected schedule of increases, the city could be expected to show annual revenue from the use of the Renewable Energy Center of at least $1.5 million. BSA has done initial cost/benefit calculations for the CCHP, but feels the city needs a full blown feasibility study to determine whether that is the way it should go, and has made a proposal to do such a feasibility study, 65 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) continued... including four components: look at(1)first costs; (2) annual operational costs; (3) operational costs; and (4) income. They want to roll all potential costs, including the cost of a renewable energy center, a potentially high initial outlay, to come up with a document similar to a business plan. The city does not want to become a utility provider so BSA will suggest other methods to run the Reliable Energy Center. Mr. Varner asked if it was BSA's intention to seek out grant money for the energy center. Mr. Lake responded that BSA would not necessarily to do that; perhaps Ms. Hathaway would. BSA could identify avenues for those grants and there is a lot of money available right now for this technology. (3) Proposal from BSA LifeStructures for feasibility study for combined cooling, heating and power at Ignition Park. Ms. Hathaway noted the availability of reliable, redundant, low cost power has been stated as Ignition Park's marketing advantage in the Graham-Allen Partners Feasibility Study and Business Plan. Cloud computing data centers have been highlighted as likely candidates that might be drawn to Ignition Park because of this power advantage. A confirming example is Ignition Park's first lot sale to the private investor Data Realty. To insure that Ignition Park can justify marketing this asset, the Phase 1 A 66 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued... infrastructure design contains more power conduits than would normally be provided. To further protect this power advantage, Economic Development requests your approval to study the feasibility of a Combined Cooling, Heating & Power Energy Center at Ignition Park. This study will explore not only the functional and financial viability, but also the public-private ownership options. This Energy Center option is part of BSA LifeStructures' overall Master Plan for Ignition Park, to provide the opportunity of power from a cleaner source other than coal. The Feasibility Study iterates the need to be mindful of the Park's existing advantage and to protect that advantage in multiple ways to ensure significant, valuable differentiation of Ignition Park to potential tenants. Economic Development requests Commission approval of BSA LifeStructures proposal for this study in the amount of $30,800 including reimbursables. Ms. Hathaway noted that she came out of a meeting earlier today questioning AEP about the Studebaker substation. If Data Realty grows the way they anticipate over the next ten years, it will require ten megawatts of power. There are nine megawatts of power today at the Studebaker substation. When she questioned AEP about whether the Studebaker substation could accommodate an additional five, six or seven addition data 67 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued... centers requiring ten megawatts each, AEP admitted they would be obligated to supply it, but there is not the land at the substation to accommodate the additional equipment that would be needed. That substation only has the capacity of 20 megawatts of power total. Their solution is to put a substation at Ignition Park. Ms. Hathaway asked for Commission approval of the proposal from BSA LifeStructures for the feasibility study. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED PROPOSAL FROM BSA Mr. Varner and unanimously carried, the LIFESTRUCTURES FOR FEASIBILITY STUDY FOR A Commission approved Proposal from BSA COMBINED COOLING,HEATING AND POWER ENERGY CENTER AT IGNITION PARK. LifeStructures for feasibility study for a Combined Cooling, Heating and Power Energy Center at Ignition Park. (4) Proposal from BSA LifeStructures for Ignition Park Accelerator Building visioning and imagery development. Ms. Hathaway noted the central focal point of Ignition Park's Master Plan is a circle with basin for storm water retention, gathering green space with solar trees, wind spire that defines the hub of the park and a building or buildings that enhance the most significant location within the Park. Definition of design requirements for these structures is imperative if we are to control the look of the most important and visible elements within the Park. 68 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (4) continued... It is prudent that we initiate the definition of these structures at this time in order to be prepared to respond to the tenants Ignition Park will attract. Otherwise, haste under pressure will drive us to an unintended solution with a facility that is less than it can be and a lost opportunity for Ignition Park. We have an obligation to this community to be better stewards. Economic Development asks for your approval of BSA LifeStructures proposal for the definition of this building(s) concept design in the amount of$45,000 including reimbursables. Mr. Downes asked if the study will give the city some idea of what the cost of such building will be. Ms. Hathaway said it would not. We can do that when the time comes. Mr. Lake said BSA can project a likely cost, good for three years, if the city determines a building size. Upon a motion by Ms. King, seconded by COMMISSION APPROVED THE PROPOSAL FROM Mr. Downes and unanimously carried, the BSA LIFESTRUCTURES FOR IGNITION PARK Commission approved the Proposal from ACCELERATOR BUILDING(CIRCLE-BUILDING CONCEPT DESIGN)VISIONING AND IMAGERY BSA LifeStructures for Ignition Park DEVELOPMENT. Accelerator Building (circle-building concept design) visioning and imagery development. (13) Resolution No. 2970 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Ignition Park Phase 1B Infrastructure). 69 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (13) continued... Mr. Kain noted the Resolution No. 2970 and Addendum To Master Agency Agreement for Ignition Park Phase 1B Infrastructure. On October 11, 2011 the Redevelopment Commission approved a proposal from BSA LifeStructures, Inc. to develop the second phase of the infrastructure design work (Phase 1B) with Phase I initiated on July 26, 2011. Design development fees for 1B were approved at $335,000. The scope of Phase 1B includes the design of • Entrance boulevard from Sample Street to the Circle • Two pedestrian boulevards from the Northeast and Northwest portions of the site into the Circle. • The remainder of the Circle in the center of the 84 acre Ignition Park site. • Utility infrastructure in the site to include power, communication, water, sewer and storm water management. • Green ecosystem elements and phasing The attached resolution and Addendum to the Master Agency Agreement will allow the Board of Public Works to engage in design development discussions and assist BSA with project bidding, award contacts and manage infrastructure construction to completion. 70 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (13) continued... Staff requests approval of Resolution No. 2970. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.2970 Mr. Downes and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 2970 OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT(IGNITION PARK PHASE IB approving and authorizing the execution of INFRASTRUCTURE). an Addendum to the Master Agency Agreement (Ignition Park Phase 1B Infrastructure). (15) Amendment to Agreement for Services by and between the city of South Bend, Department of Redevelopment, Acting by and through the South Bend Redevelopment Commission and Hathaway 2, Inc. (2011-2012). Mr. Inks noted the Amendment to Agreement for Services with Hathaway2 by and between the City of South Bend, Department of Redevelopment, acting by and through the South Bend Redevelopment Commission through the end of the year. This is a two month extension to the existing contract, adds $15,000 to the contract and reallocates $10,000 reimburseables. Mr. Downes asked Mr. Inks what the plan is for after December 31, 2011. Mr. Inks responded that that is not yet determined. The new administration will want to be involved in that decision. 71 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (15) continued... Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE AMENDMENT TO Mr. Varner and unanimously carried, the AGREEMENT FOR SERVICES BY AND BETWEEN Commission approved the Amendment to THE CITY OF SOUTH BEND,DEPARTMENT OF REDEVELOPMENT,ACTING BY AND THROUGH Agreement for Services by and between the THE SOUTH BEND REDEVELOPMENT city of South Bend, Department of COMMISSION AND HATHAWAY2,INC.(2011- Redevelopment, Acting by and through the 2012). South Bend Redevelopment Commission and Hathaway2, Inc. (2011-2012). D. West Washington-Chapin Development Area There was no business in the West Washington- THERE WAS NO BUSINESS IN THE WEST Chapin Development Area. WASHINGTON-CHAPIN DEVELOPMENT AREA. G. 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. 7. PROGRESS REPORTS There were no Progress Reports THERE WERE NO PROGRESS REPORTS 8. NEXT COMMISSION MEETING The Next Meetings of the Redevelopment Commission NEXT COMMISSION MEETINGS are: Annual Organizational Meeting: Tuesday, January 3, 2012 at 4:00 p.m. Special Meeting: Tuesday, January 3, 2012 at 4:15 p.m. (following Annual Organizational Meeting) 72 South Bend Redevelopment Commission Regular Meeting—December 13, 2011 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Downes made a motion that the meeting be adjourned. Mr. Varner seconded the motion and the meeting was adjourned at 6:40 p.m. ,. 73