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HomeMy WebLinkAbout03-13-12 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING March 13, 2012 4:00 p.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Dr. David Varner, Vice President Mr. Donald Alford, Secretary Mr. Greg Downes Mr. Henry Davis, Jr. Members Absent: Ms. Stephanie Spivey Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. David Relos, Economic Development Specialist Mr. Jitin Kain, Senior CED Specialist Ms. Debrah Jennings, Property Manager Others Present: Mayor Pete Buttigieg Mr. Mike Schmuhl, Mayor's Chief of Staff Mr. Mark Neal, City Controller Ms. Beth Leonard Inks, Community Development Mr. Gary Gilot, Engineering Mr. Richard Nussbaum, Sopko, Nussbaum, Inabnit& Kaczmarek Mr. Bill Hostetler, Historic Preservation Commission Ms. Mo Miller Mr. Dan Jones Mr. Brian Siqueira Mr. Shane Ambel Mr. Abraham Marcus Mr. Tim Firestone, Blackthorn Golf Course Mr. Kevin Smith, Union Station Properties Mr. Jim Bognar Mr. James Krolikowski Mr. Brad Chamness Ms. Elicia Feasel, Historic Preservation Commission Ms. Catherine Hostetler, Historic Preservation Commission Mr. Mark Peterson, WNDU (and photographer) South Bend Redevelopment Commission Regular Meeting—March 13, 2012 ELECTION OF OFFICERS President Mr. Downes nominated Ms. Marcia Jones to serve as MS.MARCIA JONES WAS ELECTED PRESIDENT President of the South Bend Redevelopment FOR 2012 Commission. The nomination was seconded by Mr. Alford. There were no further nominations. The vote being unanimous, Ms. Marcia Jones was elected President for 2012. Secretary Mr. Varner nominated M. Donald Alford to serve as MR.DONALD ALFORD WAS ELECTED Secretary of the South Bend Redevelopment SECRETARY FOR 2012 Commission. The nomination was seconded by Mr. Downes. There were no further nominations. The vote being unanimous, Mr. Donald Alford was elected Secretary for 2012. 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Tuesday, February 14, 2012. 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,FEBRUARY approved the Minutes of the Regular Meeting of 14,2012. Tuesday, February 14, 2012. 3. APPROVAL OF CLAIMS A. Claims submitted for ratification March 13, 2012. 305 FUND SBCDA BOND ADG $ 2,000.00 South Entry Improvements ADG 2,000.00 Century Center Island Park Pavilion 324 AIRPORT AEDA Grinsfelder Associates Architects 4,796.62 Animal Shelter Notice of Bidders Ignition Pk South Tri County News 55.91 Demolition 2 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 3. APPROVAL OF CLAIMS (CONT.) 305 FUND SBCDA BOND South Bend Tribune 94.99 Legal Dept 25,200.00 Svcs Rendered 3rd&4th Quarter 2011 McGuire, Craddock& Strother, P.C. 5,417.56 TIC United Debtor Owners' Association at Blackthorn, Property Management Inc. 48,237.33 Sopko,Nussbaum, Inabnit& Legal Services Kaczmarek 956.25 Hull &Associates, Inc. 1,905.00 General Consulting Faegre Baker&Daniels 1,035.00 Legal Services Innovation Park 498.33 Monthly Rental South Bend Tribune 16.70 Snow Removal Bid Publication DLZ 6,185.00 Oliver Corridor Plews Shadley Racher&Braun LLP 279.00 Cost Recovery Blue Waters Group 10,556.40 Ignition Pk Marketing & Other BSA LifeStructure 121,437.50 Ignition Pk Ph 1B -DDs 420 FUND TIF DISTRICT-SBCDA GENERAL South Bend Water Works 37.60 Commercial Ampco System Parking 1,792.62 St Joseph St Surface/225 Main St Sopko,Nussbaum, Inabnit& Kaczmarek 225.00 Legal Services Rose Pest Solutions 99.00 LaSalle Hotel Pest Control ADG 2,580.00 College Football Hall Faegre Baker&Daniels 180.00 Legal Services Wightman Petrie 248,935.53 Coveleski Stadium Remodel South Bend Tribune 16.70 Snow Removal Bid Publication 422 TIF DISTRICT WEST WASHINGTON Sopko,Nussbaum, Inabnit& Legal Services Kaczmarek 1,653.75 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA 41 Christopher B Burke Engineering, S. Main St to Lafayette Blvd LLC 24,238.00 Connector Ralph and Sharon Mink 6,383.30 Relocation Wiltfong Moving & Storage, Inc. 100.00 Relocation $ 516,913.09 Upon a motion by Mr. Downes, seconded by Mr. Varner COMMISSION APPROVED THE CLAIMS and unanimously carried, the Commission approved the SUBMITTED FOR RATIFICATION MARCH 13,2012, Claims submitted for ratification March 13, 2012, and AND ORDERED CHECKS TO BE RELEASED. ordered checks to be released. 3 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 3. APPROVAL OF CLAIMS (CONT.) B. Claims submitted for approval March 13, 2012. 305 FUND SBCDA BOND ADG 1,000.00 South Entry Improvements ADG 2,600.00 Century Center Island Park Pavilion 324 AIRPORT AEDA Ziolkowski Construction, Inc. 125,284.10 Animal Shelter Weaver Boos Consultants 43,905.45 Studebaker Area A Demo -Phase IV Innovation Park 85.92 Monthly Office Space Rental Seige Construction Co, Inc. 247,331.69 Ignition Park Phase IA Blue Waters Group 6,340.00 Ignition Pk Marketing & Other McGuire, Craddock& Strother, P.C. 124.50 Professional Services Dore &Associates Contracting Inc 596,362.91 Demo &Environmental Cleanup Hull &Associates, Inc 4,541.25 General Consulting Plews Shadley Racher&Braun LLP 721.50 Legal Services Studebaker Cost Recovery/Oliver Plew Shadley Racher&Braun LLP 1,177.28 Plow WkS South Bend Tribune 23.88 Legal Notice Hull &Associates, Inc 2,005.00 Studebaker Data Evaluation for VRP C &E Excavating 90,333.75 Mayflower Rd San. Sewer BSA LifeStructure Ignition Park Data Realty Facade 28,744.75 Improv. 420 FUND TIF DISTRICT-SBCDA GENERAL Casteel Construction Corp 62,762.00 Century Center Island Pavilion CB Richard Ellis 619.95 LaSalle Hotel Management Fees Adaptive Reuse of the college Football ADG 3,785.00 Hall of Fame Kil Architecture Planning 771.50 East Bank Village DTSB 13,750.00 Downtown Beautification Program Otis Elevator Company 82,000.00 Jefferson/Main Streetscape Improv South Bend Water Works 37.60 325 S Lafayette Blvd South Bend Tribune 57.28 Legal Notice Ampco System Parking 2,543.07 St. Joseph Surface/225 Main Street 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT DLZ 7,535.00 Engineering Work 429 TIF FUND NORTHEAST DISTRICT DLZ 7,260.00 Eddy St Corridor Concept Study $ 1,331,703.38 4 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 3. APPROVAL OF CLAIMS (CONT.) B. Claims submitted for approval March 13, 2012. Upon a motion by Mr. Downes, seconded by Mr. Varner COMMISSION APPROVED THE CLAIMS and unanimously carried, the Commission approved the SUBMITTED MARCH 13,2012,AND ORDERED Claims submitted March 13, 2012, and ordered checks THE CHECKS TO BE RELEASED to be released. 4. COMMUNICATIONS There were no Communications. THERE WERE NO COMMUNICATIONS 5. OLD BUSINESS There was no Old Business. THERE WAS NO OLD BUSINESS 6. NEW BUSINESS A. Public Hearing (1) Public Hearing on Resolution No. 3007 determining to appropriate monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2012 and ending December 31, 2012, including all outstanding claims and obligations, fixing a time when the same shall take effect. Ms. Leonard Inks noted the appropriation will appropriate additional dollars for the Blackthorn Golf Course. The reason for the appropriation is two-fold. First, staff neglected to put the debt service on the original appropriation; and, secondly, Blackthorn will be hosting an LPGA event. Because of that they'll have additional revenues but it will also mean they will have additional expenses. The revenues are expected to cover the additional expenses. 5 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Mr. Inks noted that the Public Hearing file is complete and contains the notice of hearing, a copy of Resolution No. 3007 and affidavits from the South Bend Tribune and the Tri- County News that the notice of hearing was published in those newspapers on March 2, 2012. Ms. Jones opened the public portion of the PUBLIC HEARING ON RESOLUTION No.3007 public hearing for anyone who wished to speak regarding Resolution No. 3007. There was no one who wished to speak. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (2) Consideration of Resolution No. 3007. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.3007 Mr. Downes and unanimously carried, the DETERMINING TO APPROPRIATE MONIES FOR THE Commission approved Resolution No. 3007 PURPOSE OF DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE determining to appropriate monies for the FISCAL YEAR BEGINNING JANUARY 1,2012 AND purpose of defraying the expenses of certain ENDING DECEMBER 31,2012,INCLUDING ALL local public improvements for the fiscal year OUTSTANDING CLAIMS AND OBLIGATIONS, beginning January 1, 2012 and ending FIXING A TIME WHEN THE SAME SHALL TAKE December 31, 2012, including all outstanding EFFECT. claims and obligations, fixing a time when the same shall take effect. B. South Bend Central Development Area (1) Resolution No. 3009 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Memorial Hospital Facade Project). Mr. Relos noted that on December 13, 2011, 6 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... the Commission approved a First Amendment to the Agreement between the Commission and Memorial Hospital, which replaced the planned reconfiguration of the Main/Michigan Street"S" curve with three other projects, including new facades for the Skyway Bridge and Skyway Building. This plan amendment staged the projects by year, and assigned budgets for work to be completed through 2015, when the Central Medical District Development Area ends. Also, on December 13, 2011, the Commission approved a professional services agreement with the Troyer Group to finalize facade designs, prepare construction bid specs, construction oversight, etc. This Addendum between the Board of Public Works and the Commission covers facade work on the Skyway Bridge and Skyway Building. This work will help tie the Memorial Hospital campus into a unified look, will create a more dramatic entrance corridor into the downtown core, and compliment the work that has recently been completed north of LaSalle between Michigan and Lafayette. Staff requested approval of Resolution No. 3009, and the Addendum to the Master Agency Agreement, in the amount of $2,100,000. Mr. Varner asked whether there were more improvements planned for Leeper Park 7 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... including the portion north of the Water Works North Station. Mr. Relos responded that on the east side of Michigan Street, the development area boundary ends at Bartlett Street. It does not include Leeper Park. Mr. Varner suggested the Commission amend the boundaries to include the park. It is in need of improvements and it is the entrance to downtown. Mr. Downes asked whether this would need approval down state. Mr. Inks believed it would be a strictly local decision. Ms. Jones noted that the Medical Services District ends in 2015, so the timing is critical. The decision should be made sooner rather then later. Mr. Relos noted that the cost of these improvements depends on bids. Whether there is money remaining in the TIF district would depend on whether the bids come in under budget. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.3009 Mr. Alford and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 3009 OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT(MEMORIAL HOSPITAL FACADE approving and authorizing the execution of PROJECT). an Addendum to the Master Agency Agreement (Memorial Hospital Facade Proj ect). (2) Proposal for environmental remediation of asbestos and related environmental materials at 325-329 S. Lafayette (former Shillings building). 8 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... Mr. Schalliol noted that the scope of work included in the proposal details many asbestos locations within the building. These hot spots must all be remediated before restoration or reuse plans can be developed for the site. The proposal amount for the work is $18,780. Wightman Petrie, the environmental firm that prepared the asbestos report, would provide oversight of the work Diamond Environmental would do at the site. Staff requested Commission approval for this proposal. Ms. Jones asked if there was active interest in this building. Mr. Schalliol's response was that there is interest, but staff is waiting until its known what will potentially be done. Mr. Davis asked if the known interest is consistent with the city plan. Mr. Schalliol responded that it is. Mr. Varner asked if the interested party is a governmental agency or private enterprise. Mr. Schalliol responded that it is a private enterprise. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED PROPOSAL FOR Mr. Varner and unanimously carried, the ENVIRONMENTAL REMEDIATION OF ASBESTOS Commission approved proposal for AND RELATED ENVIRONMENTAL MATERIALS AT 325-329 S.LAFAYETTE FOR THE SCOPE OF environmental remediation of asbestos and SERVICES AND FEE PROPOSED related environmental materials at 325-329 S. Lafayette for the scope of services and fee proposed. 9 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) Proposal for Asbestos and Lead Based Paint Survey at 420 S. William St. (former Sons of Israel Synagogue). Mr. Schalliol noted the Sons of Israel Synagogue is being renovated as part of the Coveleski Park improvements and this study is needed to complete interior and exterior work. The total cost of the proposal is $1,800. Staff requested Commission approval for these proposals. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED PROPOSAL FOR Mr. Varner and unanimously carried, the ASBESTOS AND LEAD BASED PAINT SURVEY AT Commission approved Proposal for Asbestos 420 S.WILLIAM ST.(FORMER SONS OF ISRAEL and Lead Based Paint Survey at 420 S. SYNAGOGUE). William St. (former Sons of Israel Synagogue). (4) Proposal for environmental remediation of Asbestos and Lead Based Paint at 420 S. William St. (former Sons of Israel Synagogue). Mr. Schalliol noted that Diamond Environmental Services, Inc. submitted a proposal in the amount of$5,645 to perform environmental remediation of Asbestos and Lead Based Paint from the synagogue facility. The scope of work included in the document details many asbestos and paint locations within the building and these hot spots must all be remediated before restoration can continue on the site. Wightman Petrie would provide oversight of the work. 10 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued... Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED PROPOSAL FOR Mr. Varner and unanimously carried, the ENVIRONMENTAL REMEDIATION OF ASBESTOS Commission approved Proposal for AND LEAD BASED PAINT AT 420 S.WILLIAM ST. FOR THE SCOPE OF SERVICES AND FEE PROPOSED environmental remediation of Asbestos and Lead Based Paint at 420 S. William St. for the scope of services and fee proposed. C. Airport Economic Development Area (1) FGTA, LLC Tournament Sanction Agreement (Blackthorn Golf Course). Mr. Firestone noted that Blackthorn Golf Club has secured bringing an LPGA tournament to South Bend. It's a big win, not only for Blackthorn but also for the community. It should have a substantial impact on the economy here during that week of festivities. The agreement up for approval is an agreement between Blackthorn, the City of South Bend, and the LPGA agreeing that we are going to perform the duties of posting and running an organized tournament. Also, in the agreement, LPGA is paying Blackthorn a fee for the use of the golf course for one week. The official terms of the tournament competition is as follows: • Tournament name: Four Winds Invitational or such other name as determined by TOUR • Tournament organizer: The City of 11 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... South Bend, d/b/a Blackthorn Golf Club • Tournament title sponsor: Pokagon Gaming Authority , d/b/a Four Winds Casino Resort • Tournament dates: August 6-12, 2012 • Initial pro-am date: Wednesday and Thursday of Tournament Week • Tournament course: Blackthorn Golf Club, South Bend, Indiana • Tournament purse: $150,000, unless increased or reduced by the TOUR in its sole discretion • Tournament format: 54-hole play, cut after 36 holes (70 and ties) • Tournament designation: official • Term of Agreement: one (1)year • Other: term sheet standing alone shall not be deemed a contract between the TOUR and organizer. Neither the TOUR nor organizer shall be bound to the term sheet unless and until both the TOUR and organizer have signed the FGTA, LLC Tournament Sanction Agreement to which this Term Sheet is attached (the "Agreement"). Organizer shall be subject to all terms and conditions of the Agreement, and the Tournament shall be conducted in accordance with the TOUR's procedures as set forth in the TOUR Operations Guide (including without limitation the Media Services section) and Brand Graphics Guidelines. 12 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... Mr. Davis asked if the tournament that is to take place in Benton Harbor is apt to help or hinder Blackthorn getting future tours. Mr. Firestone replied that this is a stepping stone both for Blackthorn and for the city as it will bring an attendance over three days of about 10,000 people. It will demonstrate how well Blackthorn is suited to larger events and may lead to more of them. The event in Benton Harbor will draw 40,000 to 50,000 people, and impact Blackthorn very little. Mr. Davis asked whether the other city golf courses complain about the competition of Blackthorn. Mr. Firestone replied that that debate happens all over the country. He has not heard any more complaints than in the past. Blackthorn does everything it can to work with everyone in the community the same way. Mr. Downes asked Mr. Firestone if he was happy with all the requirements in the contract. His response was yes. He's confident that Blackthorn will meet and exceed projections. He has sold yet another sponsorship. The community has been fantastic and supportive. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED FGTA,LLC Mr. Varner and unanimously carried, the TOURNAMENT SANCTION AGREEMENT Commission approved FGTA, LLC (BLACKTHoRN GOLF COURSE). Tournament Sanction Agreement (Blackthorn Golf Course). 13 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) Declaration that Bosch site disposition process completed. Mr. Relos noted that on November 22, 2011, the Commission approved by Resolution No. 2959 the fair market value of the Bosch site at 401 N. Bendix Drive. Based on two independent commercial appraisals, this unique property was valued to determine both its sales and lease value. Additionally, the property was valued three different ways: as a total site, only the main building and land (Plant 100), and only the smaller engineering building property and land (Plant 9). The values arrived at were: • Total site (29.46 acres) sale price $1,967,500 triple net lease $1.60 / square foot • Plant 100 (25.90 acres) sale price $1,532,500 triple net lease $1.63 / square foot • Plant 9 (3.56 acres) sale price $462,500 triple net lease $1.73 / square foot. Also, approved on November 22, 2011 was the authorization to publish the Notice of Intended Disposition of Property (Notice), with publication dates of December 2 and December 9, 2011. The Notice was published on those dates, and December 27, 2011 was set as the date bids were to be opened. December 27, 2011 began the 30 day period during which no negotiated deals 14 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) continued... could occur. For the record, the 30 day period is now over and the Commission may consider any negotiated deal that is presented. Upon a motion by Mr. Varner, seconded by COMMISSION ACCEPTED THE REPORT THAT NO Mr. Downes and unanimously carried, the BIDS WERE RECEIVED BY DECEMBER Commission accepted the report that no bids 27,2011AND ACKNOWLEDGES THAT THE 30 DAY WAITING PERIOD were received by December 27, 201 land acknowledges that the 30 day waiting period. (3) Staff report on A. J. Wright payment. Mr. Inks noted that the city has received the first of nine annual payments from A.J. Wright. The amount was $354,660, and we will receive the same amount in each of the next eight years. The State Board of Accounts suggested the Redevelopment Commission be asked the question of where these funds should be receipted to. Putting the monies in the General Fund, EDIT or COIT all provide the same and greatest flexibility for their use. Putting the monies in the Airport TIF makes sense since that was the source of funding for the A.J. Wright project, and the TIF is still paying the bonds related to that project. TIF, however, is more limited in how it can be used. Mr. Inks would recommend depositing to the EDIT account since it has good flexibility and connotes an intended use for economic development purposes. This item was brought to the Commission as an added item at the last meeting. There was 15 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued... an interim action taken authorizing the funds to be deposited into the EDIT fund, but since it wasn't a formal agenda item at that meeting, the request was to put it on as a formal agenda item for ratification. Mr. Varner asked whether funds were A. J. Wright's settlement in lieu of meeting its goals for jobs created and if it is still paying property taxes on the building. Mr. Inks answered yes, they are still paying property taxes on the building and those payments are sufficient to cover the payments on the bonds. Ms. Jones asked if in the long-term budgeting that was done for the TIF, is there a compelling reason to keep the payment for the TIP Mr. Inks responded no. Mr. Davis stated that this is refreshing news and asked if there is any way this information could be sent to the public that the taxes and penalties are being paid due to the fact of jobs lost? There was no immediate response to that, but everyone agreed it would be good public relations to get the word out. Upon a motion by Mr. Downes, seconded by COMMISSION RATIFIED ITS EARLIER DECISION TO Mr. Varner and unanimously carried, the DEPOSIT THE A.J.WRIGHT PENALTY PAYMENT THIS YEAR TO THE EDIT FUND IN THE AMOUNT Commission ratified its earlier decision t0 OF$354,660 AND AUTHORIZED THE SAME deposit the A. J. Wright penalty payment this AMOUNT FOR EACH OF THE NEXT EIGHT YEARS year to the EDIT fund in the amount of TO BE DEPOSITED IN THE EDIT FUND $354,660 and authorized the same amount for each of the next eight years to be deposited in the EDIT fund. 16 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (4) Resolution No. 3010 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Nimtz Parkway Multi-Use Path, Phase 1 — Engineering Supplement #1). Mr. Schalliol noted that the Amendment includes a professional services proposal from Abonmarche to provide additional design services to the project for development of a lighting system and electrical plan for the trail. In June, 2011, the Redevelopment Commission approved an addendum to allow for the design of a safe walking path from Moreau Court to the entrance of the Blackthorn Golf Course on the south side of Nimtz Parkway. Abonmarche, the designers of the Nimtz Parkway/Mayflower sewer project, were hired to design and engineer a trail through this Phase 1 corridor. The additional scope of work will allow for a redesign of the existing electrical and lighting plan for the corridor along Nimtz. Construction of the walkway is to be done this summer before the Symtera Tour event that will be held at Blackthorn Golf Course this August. The professional service proposal is in the amount of$6,400 for this expanded scope of work. Staff requests approval of Resolution No. 3010. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.3010 Mr. Downes and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 3010 OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT(NiMTZ PARKWAY MULTI-USE approving and authorizing the execution of PATH,PHASE 1-ENGINEERING SUPPLEMENT an Addendum to the Master Agency #1). 17 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (4) continued... Agreement (Nimtz Parkway Multi-Use Path, Phase 1 —Engineering Supplement#1). (5) Resolution No. 3011 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Mayflower Road Planning Study). Mr. Schalliol asked that this item be tabled until the next Redevelopment Commission meeting. Upon a motion by Mr. Downes, seconded by COMMISSION TABLED ITEM 6C(5). Mr. Alford and unanimously carried, the Commission tabled Item 6C (5). (6) Proposal for Phase 11 Environmental Study at 600 United Drive (Ivy Tower). Mr. Schalliol noted that Wightman Petrie submitted a proposal to provide Phase II Environmental Services at the Ivy Tower site at 600 United Drive. The purpose of the Phase II is to do some site specific testing to determine environmental conditions and to set baseline levels for potential cross site contamination. In January 2012, Wightman Petrie was hired by the Commission to complete the Phase I ESA for the site. This proposal is a continuation of that work. The fee for the scope of work is $12,600. The Ivy Tower site is located within the proposed Renaissance District and the site study is a component of work to be done in the future. Staff requests Commission 18 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (6) continued... approval of the proposal. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE PROPOSAL FOR A Mr. Alford and unanimously carried, the PHASE II ENVIRONMENTAL STUDY AT 600 Commission approved the proposal for a UNITED DRIVE(IVY TOWER)FOR THE SCOPE OF SERVICES AND FEE PROPOSED Phase II Environmental Study at 600 United Drive (Ivy Tower) for the scope of services and fee proposed. (7) Staff report on Memorandum of Understanding with Renaissance District, Phase I. Mayor Buttigieg spoke to provide a context for the proposed project and to communicate the special importance that this project may have for the City of South Bend. When we talk about the plan for downtown, as well as the economic goals of the administration, a number of things laid out as priorities are potentially involved and potentially at stake in what could happen with the Renaissance District. One priority is to make sure we're making the most of the infrastructural advantages that the city has. Often we think about above-ground infrastructure, but underground fiber infrastructure is actually one of the most distinguishing characteristics about South Bend. Another goal is the adaptive re-use of older properties. The third goal is to add to the density of people traffic downtown. The Mayor noted that the proposal and the potential program are not small and are fairly complex so there is a detailed presentation. 19 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (7) continued... The project is being contemplated in several phases so the Commission will have enough time to absorb a lot of the complexity as well as the scope of the opportunity. The Mayor noted that the portion of the project for which we are asking approval today is referred to as Phase I and contains the most straight-forward elements of the project. The Union Station business needs to grow in order to meet its expanding customer base. This is an opportunity for us in city government to learn how to move at the pace of high-tech business. Opportunities to work with Internet-driven businesses come and go at a swiftness that we're not used to in some other industrial environments. We need to find the right balance between providing the Commission with the information it needs to make decisions, and at a fast enough pace to meet the needs of the business. Mayor Pete communicated his enthusiasm for the potential to have a structure that in many ways economically taunted us by its emptiness and to also bring high-paying jobs back into that structure once again. He believes it's a particularly compelling possibility for the Commission to entertain. Mr. Kevin Smith, head of Union Station Properties, explained his vision for the multi- phased project. He purchased Union Station in 1977 and slowly began renovating it, briefly running it as a conference/catering facility. But it became apparent that there 20 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (7) continued... was unmet demand in the community for office space for high tech businesses. His adjoining manufacturing business, Deluxe Sheet Metal, moved to a new location in an Airport Industrial Park, opening up additional space for the growing technology companies he housed, but his business has now outgrown both sites. He has long looked at the six-story Ivy Tower building of Abe Marcus directly south of the tracks from him as a possible building to expand into, but wasn't able to figure out how to make a connection to the two buildings. Now, it appears that it might be possible, with the Commission's help, to vacate United Drive to create a corridor into which to move his heavy power requirements to the other side of the tracks. Union Station is at the fundamental crossroad where he could build a larger and central power plant type structure which he has been working six years to develop. He would also purchase the Millennium Environmental parcel. That would allow him to move the core energy (Union Station) from the north side of the tracks and thereby allow him to expand the Union Station by another 20,000 sq. ft. that would have otherwise have been taken by energy systems. This is a grand opportunity to repurpose Union Station and repurpose it from an old, not optimized environment, to a new technology framework. 21 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (7) continued... Mr. Smith wants to participate in the creation of new technology jobs in the old Studebaker Corridor. He expects to provide an additional 100 jobs initially to build these components. His company would also then provide rapid pro-typing environments and a technology center. The Ivy Tower is a million square feet collectively. Mr. Smith's vision includes making the center of South Bend a transportation hub again, bringing Amtrak and the South Shore back downtown. He believes he has now found the right person at Norfolk Southern to help make that happen. Without transportation, the million square feet in Ivy Tower cannot be used to its highest capacity. He would like to have streetcars again running through downtown and to Ignition Park, to easily move people from business to business and to the various parking garages and lots. Mr. Smith would like to see the renovated Ivy Tower building be a very public place. He'd like to cut a cylinder through the entire building to create an atrium that would be both beautiful, a source of solar energy, and help in core ventilation. It will help the building become an extremely "green" building. Union Station is presently one of the most energy efficient data center operators in the nation. Mr. Smith has had some discussions with the new owner of the Studebaker administration 22 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (7) continued... building, looking at the potential of integrating that building into a larger complex with Mr. Smith's project. Mr. Schalliol gave his staff report on the project. He noted that the proposed Renaissance District (RD), bounded by South Street, Lafayette Boulevard, Sample Street and Scott Street and which straddles the line between the South Bend Central Development Area (SBCDA) and the Airport Economic Development Area (AEDA)., is based on the expansion of technology center uses at the Union Station facility on South Street. The RD model is founded on the three core principles—Space, Power and Connectivity. SPACE As the Union Station Technology Center grows to capacity the next logistical step was to acquire more land and space adjacent to the rail corridor to grow the technology center concept. The project contemplates the acquisition and repurposing of the Ivy Tower complex and the former Millennium Environmental property, both located south of the tracks, for expanded technology center purposes. The total developable square footage between the Union Station facility, the Ivy Tower complex and additional new construction on the site would be over 1.3 million square feet of space. Additional land and buildings could be added to the district and there could even be a long term push to expand connectivity of the RD down into the Ignition Park campus. 23 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (7) continued... POWER An integral part of this project is to create an Integrated Central Power System (IC) which will be developed to provide conditioned and recycled energy to the various users on site. A large component of this project will be to expand the power capacity in this southern downtown area by directly connecting to the 138 KV transmission network and developing redundant substations and power conduit grids to maintain a high level of power to the site. The first energy component will be the construction of a 5 MW power connection into the RD facility with a direct conduit connection to the AEP substation on Lafayette. CONNECTIVITY The RD proposes a variety of connections in and around the district campus. First, with the vacation of United Drive, the Union Station will be connected at grade level to the Millennium site and the Ivy Tower site to allow for equipment and supplies to be safely and effectively transported between facilities. Second, the City will coordinate with the team the construction of a redundant power and conduit path around the district which will distribute power and fiber throughout the site. Third, the Union Station building and the Ivy Tower building will be connected by way of the construction of a pedestrian tunnel between the facilities to physically connect the space. Mr. Varner asked how Mr. Smith expects to 24 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (7) continued... accomplish all of that. Mr. Smith answered that needs more space to locate power for his data centers. He would otherwise build a new building outside of the downtown. However, if the city can participate in a public-private partnership, he could remain downtown and this eyesore of a building, Ivy Tower, could be renovated into a beautiful entrance to Ignition Park. He would like to cooperate with that effort. Mr. Davis asked about a marketing campaign for Chicago and how Mr. Smith would market South Bend to Chicago. Mr. Smith responded that transportation would be the key: if the South Shore could get people from between Chicago and downtown South Bend in an hour and fifteen minutes, he thinks people would move their businesses. Mr. Davis asked whether South Bend's tax break for data centers was helpful to bringing business in. Mr. Smith said it was extremely so. Mr. Davis noticed that Mr. Smith had not mentioned the homeless center, Hope Ministries and county jail that are neighbors to Union Station and Ivy Tower. Mr. Smith said that the key to creating a pedestrian friendly, secure area is to get enough people there. There are all those conditions in downtown Chicago, but you feel safe walking downtown in Chicago. Mr. Alford questioned making the sixth and 25 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (7) continued... seventh floors of Ivy Tower as condominiums and bringing the South Shore there. How much of a challenge would it be to have trains so near the residential? Mr. Smith responded that the condos would be nearly 70 feet above the rail. He expects the condos to appeal to young urbanites. They don't mind that. Instead of trying to attract people and changing their behavior, he expects to pull people that are already comfortable in that type of environment. Mr. Downes asked what portion of Mr. Smith's vision is included in Phase I. Mr. Schalliol outlined Phase I: The Renaissance District project team, consisting of both public and private sector team members working with the Union Station Technology Center (USTC) staff, are developing a Memorandum of Understanding that includes a Phase 1, Phase 2 and Phase 3 plan for the development of the District site. Mr. Schalliol outlined the requests from USTC for the three phases of the Renaissance District project. Phase 1 of the project includes a request to the Redevelopment Commission for the following: 1. Sell the former Millennium Environmental (ME) property to USTC for $43,500 (the Commission's offering price). 26 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (7) continued... 2. Once the environmental remediation is complete at the ME site, work with Indiana Department of Environmental Management to provide USTC with a comfort letter allowing USTC to purchase the Millennium Site without any environmental liability or claims of lien holders. We have that for the north half of the site; the state has committed by April 19 to have the southern half of the site cleaned so then staff will work to get a letter for the full site. The site won't be sold until staff receives the letter. 3. Initiate and support the vacation of United Drive; work with adjacent property owners to maintain reasonable access. There is a street vacation request that goes to the Common Council at its next meeting. The Board of Public Works has approved the street vacation subject to an MOU or an agreement with the Redevelopment Commission on this project. Mr. Downes asked if staff anticipates any issues from property owners with the vacation of this property. Mr. Schalliol responded that we will continue to work with the owners of adjacent properties if there are any. 4. Construct the proposed communication and power duct bank from the Lafayette Boulevard AEP substation north to a point of connection with the Ivy Tower or Union Station facility; extend it south to Sample Street as part of the conduit 27 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (7) continued... construction project for Ignition Park. 5. Construction of the power duct bank also includes the acquisition and installation of proposed components to support an upgrade of equipment capable of up to five Megawatts ("5 MW") as part of the IC Power System. It is contemplated that the cost of the proposed system will be $2.2 million dollars. Phase 1 of the project requires the following from the USTC: 1. The $2.2 million would be repaid to the City over a 10 year period through a formula defined in the MOU. The city will measure the taxable investment. If there is a shortfall, the USTC will repay the difference in value. Staff today requests support for the land sale, the vacation of United Drive, and a $2.2 million dollar investment in the power and conduit network onto the site. The $2.2 million dollars would be repaid to the City over a ten year period through a formula being developed which will be defined in the MOU which will allow the city to measure the taxable investment and for all the development that happens in the RD to a point that would pay back that $2.2 million dollars. Any difference between the value of the taxable investment and the $2.2 million dollars would be paid by USTC. A way to guarantee the money for Phase I has covered itself, allows for power to be brought to the 28 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (7) continued... building and allows the first phase of the project to be built. Staff requests approval of the concept and will bring back an MOU for approval at a later meeting. Mr. Downes asked if the funds used would be TIF dollars. Mr. Schalliol responded they would be AEDA TIF funds. Mr. Downes asked if there would be an annual taxable investment over a ten year period. Mr. Inks responded that there would be. There will be private investment in the amount of$7.5 million. Mr. Downes asked if the MOU would stipulate a look back after three or four years. Mr. Schalliol responded that it would be a graduated phase-in. Mr. Schalliol noted that Phase 2 and Phase 3 of the project are discussed below. The details have not been worked out, but will be presented later when they are. Phase 2 of the project anticipates a future request to the Redevelopment Commission to consider the following: 1. Obtain a Phase I& II Environmental Survey of the Ivy Tower Building, and enter into an Environmental Agreement regarding remediation of the Ivy Tower Building and property. A total cost for the environmental 29 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (7) continued... remediation will be available after the completion of the report, but is expected to be less than $500,000. 2. Upon the closing on the Ivy Tower building purchase by USTC, provide $3,500,000 of improvements to structurally stabilize the building to allow for its reuse. Phase 3 of the project anticipates a future request to the Redevelopment Commission to consider the following: 1. Construct additional communication and power duct banks to facilitate the IC Power System facility expansion at such time as Union Station, the Commission and other private partners can provide evidence reasonably satisfactory to the Commission that the construction of this expanded communication and power duct system is in the best interests of the citizens of the City of South Bend. A total cost for this item will be defined once the routes for the duct bank have been determined. 2. Work with Union Station to redesign the Public Works Facility to further facilitate the use of the Millennium Site consistent with the USTC. The design work and site improvement scope and the related budget have not yet been defined. 3. Coordinate with American Electric Power and others to acquire land and construct two substations in order to facilitate 30 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (7) continued... the expanded power capabilities for not only the Renaissance District, but also other surrounding businesses, including but not limited to, those located in Ignition Park. The substation sites have been generally selected but land has not been acquired nor is there yet a specific participation request beyond the city's acquisition of the proposed sites. 4. Work with the city to facilitate streetscape enhancements around the RD In conclusion, the benefits to the city are many and the return on investment provided by Redevelopment Commission funding should surpass expectations. Presently, the former Millennium Environmental sits as vacant land and the Ivy Tower building is underused. The city long expected to get involved with the acquisition and demolition of the Ivy Tower facility, but the ability to use the equivalent amount of funds to repurpose the building is a much better use of city resources than buying, demolishing and maintaining a vacant site. While the exponential growth of occupancy in the USTC is presently limited by the available space on site, the ability to add connections to the properties south of the tracks opens up many formats and configurations that space can be provided to new clients. This project will bring opportunities to South Bend in the form of improved tax base and new construction, FTE and maintenance jobs. But the project also expands the world 31 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (7) continued... presence of the USTC by allowing for the expansion of uses and services provided within the District, the creation of the Integrated Central Power System and other power management systems, and the repurposing of land and structures long past their present life cycle. Mr. Downes asked Mr. Inks how the $2.2 million dollars affects the TIF budget. Mr. Inks replied that the city's current development opportunity reserve unallocated resources for this year is $9 million dollars and this would use $2.2 million of that amount. Upon a motion by Mr. Varner, seconded by COMMISSION AUTHORIZED USE OF$2.2 MILLION Mr. Alford and unanimously carried, the IN AEDA TIF FUNDS FOR THE RENAISSANCE Commission authorized use of$2.2 million DISTRICT PHASE I PROJECT,SUBJECT TO APPROVAL OF A MEMORANDUM OF In AEDA TIF funds for the Renaissance UNDERSTANDING AT A LATER MEETING. District Phase I project, subject to approval of a Memorandum of Understanding at a later meeting. 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. E. South Side Development Area (1) Resolution No. 3012 approving and authorizing the execution of an Addendum to the Master Agency Agreement (748 Hawbaker Demolition Planning Project— Supplement #1). 32 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) E. South Side Development Area (1) continued... Mr. Schalliol noted that the agency agreement contains a proposal from Christopher B. Burke Engineering, LLC. to provide design and bidding services for the reuse of 748 Hawbaker Street. Also, included is an engineer's estimate for the work on the site. On May 27,°2011, the Commission purchased 748 Hawbaker, located north of Menards and south of the Mutual Bank on Ireland and High Street, for uses consistent with the Erskine Plaza Pond project and the Ireland and High intersection improvement project. The lot has been cleared and the proposed plan for the site is to construct a sidewalk along the eastern edge of the property that will connect the Menards's property and the western end of Erskine Plaza to Ireland Road. The property will also be land banked to be used to provide drainage relief if conditions require extra storm water management solutions in that western end of the project area. The cost of the professional services with Christopher B. Burke Engineering, LLC is $5,500. The total project cost will be $32,182.70. Staff requests approval of Resolution No. 3012. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.3012 Mr. Alford and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 3012 OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT(748 HAWBAKER DEMOLITION approving and authorizing the execution of PLANNING PROJECT-SUPPLEMENT#1)IN THE an Addendum to the Master Agency AMOUNT OF$32,282.70. Agreement (748 Hawbaker Demolition Planning Project— Supplement#1)in the amount of$32, 282.70. 33 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) F. Northeast Neighborhood Development Area There was no business in the Northeast THERE WAS NO BUSINESS IN THE NORTHEAST Neighborhood Development Area. NEIGHBORHOOD DEVELOPMENT UREA. 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. H. Other (1) Engagement letter with Sopko, Nussbaum, Inabnit and Kaczmarek for outside legal counsel. Ms. Beth Leonard Inks noted that staff keeps the city legal staff busy and every now and then they need to seek addition help. We have used up the previous $60,000 that was authorized about nine months ago. We would like a new $60,000 authorized. The engagement letter with Sopko, Nussbaum, Inabnit and Kaczmarek outlines the scope of services and fee. Mr. Davis asked if there was any other firm considered. Ms. Leonard Inks responded that this letter is a continuation of services by Mr. Nussbaum. There are ongoing projects that he has been working on. The Commission also uses the services of Faegre Baker and Daniels and Barnes and Thornburg. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE ENGAGEMENT Mr. Alford and unanimously carried, the LETTER WITH SOPKO,NUSSBAUM,INABNIT AND Commission approved the Engagement KACZMAREK FOR OUTSIDE LEGAL COUNSEL IN Letter with Sopko, Nussbaum, Inabnit and THE AMOUNT OF$60,000. Kaczmarek for outside legal counsel in the amount of$60,000. 34 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 6. NEW BUSINESS (CONT.) L Ratification of Temporary Use Agreements. Use/Agency Lot Event Dates of Use Entermission, Inc. 502 W. Western Storage Material March 13 —April 13, Ave 2012 AIDS Ministries/AIDS Wayne Street Rooftop Rendezvous Friday, June 15, 2012 Assist Garage Rooftop Northeast 1113 South Bend Temporary sign May 2, 2012 until lots are Neighborhood Ave advertising Triangle sold Revitalization Neighborhood lots Organization Upon a motion by Mr. Downes, seconded by Mr. COMMISSION RATIFIED THE TEMPORARY USE Varner and unanimously carried, the Commission AGREEMENTS APPROVED BY STAFF SINCE THE ratified the temporary Use Agreements approved FEBRUARY 14,2012 MEETING. by staff since the February 14, 2012 meeting. J. Ratification of Certificate of Completion for Toll Road Partners, L.P. Upon a motion by Mr. Downes, seconded by Mr. COMMISSION RATIFIED THE STAFF APPROVAL OF Varner and unanimously carried, the Commission THE CERTIFICATE OF COMPLETION FOR TOLL ratified the staff approval of the Certificate of ROAD PARTNERS,L.P. Completion for Toll Road Partners, L.P. 7. PROGRESS REPORTS Mr. Inks noted that at the March 12, 2012 Counsel Committee meeting, discussion took place about combining a couple of annual tax abatement reports that staff provides. One is the tax abatement summary survey information and the other is the CF 1 summaries we provide for the Counsel. They are considering combining those two reports, making the reporting easier for the businesses and the making of the report easier for staff Last year, the city had almost 50 tax active abatement recipients and roughly half of those did not file their CFI's. Staff called through the list of abatements outstanding to make sure the CFI's are put 35 South Bend Redevelopment Commission Regular Meeting—March 13, 2012 7. PROGRESS REPORTS (CONT.) in the system. We think we can provide service to the businesses and remind them to protect their benefits, at the same time lessening their reporting requirements to the city, provide better service to the Counsel with one report, and save staff time, too. Mr. Varner wondered why anyone thought the South Shore and Norfolk Southern would relocate to downtown when about fifteen years ago they were dead set against it. Mr. Schalliol responded that the reason they wouldn't do it back when Transpo wanted them to was that the Transpo built its new transfer facility about 1000 fee too far to the east. Closer to Union Station would have been possible then, and should help now. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Tuesday, March 27, 2012 at 4:00 p.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Varner made a motion that the meeting be adjourned. Mr. Alford seconded the motion and the meeting was adjourned at 5:35 p.m. 36