HomeMy WebLinkAbout2 MinutesSOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
March 27, 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. Greg Downes
Mr. Henry Davis, Jr.
Members Absent: Mr. Donald Alford, Secretary
Ms. Stephanie Spivey
Legal Counsel: Mr. Lawrence Meteiver, Esq.
Redevelopment Staff: Mr. Don Inks, Director
Mr. David Relos, Economic Development Specialist
Mr. Jitin Kain, Senior CED Specialist
Ms. Debrah Jennings, Property Manager
Others Present: Mr. Mark Neal, City Controller
Ms. Beth Leonard Inks, Community Development
Ms. Patti Lesniewicz, Economic Development
Mr. Richard Nussbaum, Sopko, Nussbaum, Inabnit &
Kaczmarek
Mr. Kevin Smith, Union Station Properties
Mr. Shane McFimbel
Mr. Marco Mariani, South Bend Heritage Foundation
Mr. Kevin Allen, South Bend Tribune
Ms. Elicia Feasel, Historic Preservation Commission
Ms. Mo Miller
WSBT
2. APPROVAL OF MINUTES
A. Approval of Minutes of the Regular Meeting of
Tuesday, March 13, 2012.
Upon a motion by Mr. Downes, seconded by Mr. COMMISSION APPROVED THE MINUTES OF THE
Varner and unanimously carried, the Commission REGULAR MEETING OF TUESDAY, MARCH 13,
approved the Minutes of the Regular Meeting of 2012.
Tuesday, March 13, 2012.
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
3. APPROVAL OF CLAIMS
Redevelopment Commission Claims submitted March 27, 2012 for approval.
324 AIRPORT AREA
David Waszak Appraisals, Inc.
Grinsfelder Associates Architects
R.E. Pitts & Associates, Inc.
Hull & Associates, Inc.
Heppenheimer & Korpal
BSA Life Structures
D LZ
D LZ
5,800.00
401 N Bendix as is & 401 N Bendix
4,351.00
Animal Shelter
4,600.00
Appraisal Services
6,868.17
Oliver Industrial Pk Area C
118.80
713 W. Indiana & 1521 S Catalpa
3,200.00
Ignition Pk Ph 1 Infrastr. Design
52,618.75
So. Bend -On Site - Bidpck B
980.00
So. Bend - Studebaker Demo Area A
420 FUND TIF DISTRICT -SBCDA GENERAL
PWS Investment Property, LLC 9,975.00 Main St /Lafayette Blvd Connector
Rose Pest Solution 99.00 LaSalle Hotel Pest Control
426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT
The Troyer Group
Facade Studies Skyway B Warner,
11,968.74 Bank & Main - Ph II
430 FUND SOUTH SIDE DEVELOPMENT TIF AREA #1
Richard Anagnos & Kathleen Anagnos
6,595.00
B & N Enterprises
675.00
C -B Realty, LLP
6,180.00
Denny D. Weber & Nancy L. Weber
1,168.00
Ric A. Debuysser & Janet A. Debuysser
296,957.44
$ 412,154.90
Upon a motion by Mr. Downes, seconded by Mr. Varner
and unanimously carried, the Commission approved the
Claims submitted March 27, 2012, and ordered checks
to be released.
4. COMMUNICATIONS
There were no Communications.
2
Main St /Lafayette Blvd Connector
Main St /Lafayette Blvd Connector
Main St /Lafayette Blvd Connector
Main St /Lafayette Blvd Connector
Main St /Lafayette Blvd Connector
COMMISSION APPROVED THE CLAIMS
SUBMITTED MARCH 27, 2012, AND ORDERED
CHECKS TO BE RELEASED.
THERE WERE NO COMMUNICATIONS
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
5. OLD BUSINESS
There was no Old Business. THERE WAS NO OLD BUSINESS
6. NEW BUSINESS
A. South Bend Central Development Area
(1) Extension of Listing Agreement with
Hallmark Real Estate for Housing
Development Corp. owned houses in
Monroe Park.
Mr. Relos noted that on September 27, 2011,
the Commission entered into Listing
Contracts with Hallmark Real Estate for the
marketing and sale of five former Housing
Development Corporation (HDC) houses in
Monroe Park. Those contracts were for
approximately six months, ending on
March 18, 2012. During that period, three of
the five houses have been sold, and one has a
pending offer.
The Commission received the extensions of
these Listing Contracts for the remaining two
properties, 609 and 620 Columbia Street.
These extensions are for six months, ending
September 18, 2012.
Staff requests approval of the two extensions
with Hallmark Real Estate, so they may
continue to market these properties.
Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE EXTENSION OF
Mr. Varner and unanimously carried, the LISTING AGREEMENT WITH HALLMARK REAL
Commission approved the Extension of ESTATE FOR HOUSING DEVELOPMENT CORP.
Listing Agreement with Hallmark Real OWNED HOUSES IN MONROE PARK.
Estate for Housing Development Corp.
owned houses in Monroe Park.
3
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEWBUSINESS (CONT.)
(2) Parking Easement Agreement with the
Board of Public Works and the South
Bend Silver Hawks.
Mr. Meteiver noted that the South Bend
Silverhawks, Redevelopment Commission,
Parks Department and the Board of Works all
own various lots in the Coveleski
neighborhood. The proposal is to grant an
easement to the Silverhawks to use the
various parking lots, some of which are
already being used under the stadium lease
agreement. The Commission owns two of
them. One of those lots is the same lot that
the city is also leasing to the ACSNA Clinic.
There are details that need to be worked out
yet on that shared use. Staff asks that this
Parking Easement Agreement be approved,
subject to legal review of the final
agreement.
Mr. Inks added that the other Commission -
owned lot was purchased from the
Studebaker Museum site, its former site.
Ms. Jones noted that there is no Exhibit A
attached, nor a stadium parking map. Ms.
Jones asked that a copy be attached when the
item is brought back to the Commission.
Mr. Relos added that the lots on the south
side of Western Ave. are also covered by the
agreement and possibly the use of the VA
Clinic parking for night games.
Mr. Downes asked if legal counsel
anticipates any conflict with the VA Clinic.
Mr. Meteiver said no. The Silverhawks will
use the west portion and the VA Clinic will
use the east portion of the parking lot. There
in
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
A. South Bend Central Development Area
(2) continued...
are four times this season where there might
be overlapping use, but only for an hour or
two.
Mr. Davis was interested in the dollar
amounts for the leasing agreements per
block. Mr. Inks responded there is no money
involved, it's just an easement that's allowed
to be used. Mr. Davis noted that people are
charged to park in those lots. Mr. Inks
responded that the Silverhawks receive the
revenues.
Mr. Varner said that he felt that, in the future,
the city should get some compensation for
the use of its lots. Mr. Meteiver noted that
the city will do some initial cleaning and
striping, and then the Silverhawks will be
expected to maintain them during the
remainder of the season. Mr. Varner thinks
the city should still collect a fee and perhaps,
in the future, split the revenue.
Mr. Davis requested a copy of the lease
agreement. Mr. Inks said he would provide a
copy.
Mr. Downes clarified that this agreement is a
one year agreement. Mr. Meteiver responded
that it is.
Mr. Davis asked if there was any way this
contract can be amended to award city
revenues. Mr. Downes added that he agreed
with Mr. Varner's principle, but thought it
should be waived for this season and
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
A. South Bend Central Development Area
(2) continued...
negotiate a fee for next year. Mr. Meteiver
said it can certainly be discussed for the
following season.
Ms. Jones asked that it be mentioned that
staff and the Commission had this discussion
and there is great interest by the Commission
in putting together an agreement where they
participate in some of the revenue.
Mr. Downes made a motion, seconded by
Mr. Varner to approve the Parking Easement
Agreement with the Board of Public Works
and the South Bend Silver Hawks as is, with
the recommendation that it discuss the
possibility of the Commission participating
in parking lot revenues in the future. The
motion carried on a vote of three to one. Mr.
Davis was opposed.
B. Airport Economic Development Area
(1) Approval of Amended Bylaws of the
Owners' Association at Blackthorn, Inc.
Mr. Relos noted that the Bylaws, Corporate
Park Declaration of Covenants &
Restrictions, and Corporate Park
Development Guidelines were created when
the park was established in the mid 1990's
and all three documents have been amended
or modified over that time. The changes that
proposed will ensure that all three documents
are in sync with each other.
The purpose of the request today is to ratify
N
COMMISSION APPROVED THE PARKING
EASEMENT AGREEMENT WITH THE BOARD OF
PUBLIC WORKS AND THE SOUTH BEND SILVER
HAWKS AS IS WITH THE RECOMMENDATION
THAT IT DISCUSS THE POSSIBILITY OF THE
COMMISSION PARTICIPATING IN PARKING LOT
REVENUES IN THE FUTURE
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
B. Airport Economic Development Area
(1) continued...
the changes and corrections that were
approved by the Blackthorn Owners
Association at a meeting that they had on
Wednesday, March 21, 2012. The owners
reviewed all three documents and approved
all of the recommended changes. Upon
Commission ratification, the documents will
be presented to the Redevelopment Authority
for approval.
Once all three agencies have approved the
changed documents, a clean version of all
three documents will be circulated to the
owners association and will be available in
the Community & Economic Development
office as well as from Grubb & Ellis /Cressy
& Everett, the listing agent for Commission
owned land in the corporate park. These
updated documents can be presented to
prospective park tenants and also give
comfort to the existing park tenants.
Mr. Downes spoke adding that there is
nothing new or there is no new intent, but
this is a clean up of everything to match
what's actually being done today.
Mr. Varner asked in reference to the bike
path through the corporate park, there is no
longer a requirement for owners to put one
on their properties, it's simply encouraged.
He wondered if it became a great
expenditure? Mr. Inks responded that the
current plan is that the city will consider
putting in a bike path on the south side of
Nimtz Parkway from Morreau Court to the
7
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
B. Airport Economic Development Area
(1) continued...
west end of the golf course and when the
bridge is redone, the bridge will connect to it.
He does not believe that it's essential that
there be a matching path on the other side.
Upon a motion by Mr. Downes, seconded by
Mr. Varner and unanimously carried, the
Commission approved the Amended Bylaws
of Owners' Association at Blackthorn, Inc.
(2) Approval of Amended Blackthorn
Corporate Park Declaration of Covenants
& Restrictions.
Upon a motion by Mr. Downes, seconded by
Mr. Varner and unanimously carried, the
Commission approved the Amended
Blackthorn Corporate Park Declaration of
Covenants & Restrictions.
(3) Approval of Amended Blackthorn
Corporate Park Development Guidelines.
Upon a motion by Mr. Downes, seconded by
Mr. Varner and unanimously carried, the
Commission approved the Amended
Blackthorn Corporate Park Development
Guidelines.
(4) Staff report on proposed uses for the
Certified Technology Park Fund.
Mr. Inks noted the following:
COMMISSION APPROVED THE AMENDED
BYLAWS OF OWNERS' ASSOCIATION AT
BLACKTHORN, INC.
COMMISSION APPROVED THE AMENDED
BLACKTHORN CORPORATE PARK DECLARATION
OF COVENANTS & RESTRICTIONS.
COMMISSION APPROVED THE AMENDED
BLACKTHORN CORPORATE PARK DEVELOPMENT
GUIDELINES.
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
B. Airport Economic Development Area
(4) continued...
Background:
• The Certified Technology Park (CTP)
is established in December 2008
through an Agreement between the
Indiana Economic Development
Commission (IEDC) and the City of
South Bend Redevelopment
Commission (RDC).
• The area of the CTP is defined to
include both Innovation Park at Notre
Dame (IPND) and Ignition Park (IP).
• IPND boundaries include the site of
the current and future IPND parking
buildings, as well as the retail /office
building on the southwest corner of
Angela and Eddy Streets (Office
Building) and Raclin - Carmichael and
Harper Halls (ND /IU Medical
Campus).
• Section 7 of the CTP Agreement
defines the CTP Incremental Tax
Financing Fund (State CTP Funds),
which can be funded with the
incremental personal income and
sales taxes generated by employment
and sales within the CTP.
1. The base fiscal year used in
order to calculate the
increment is June 30, 2008.
2. The first fiscal year for the
increment calculation was
June 30, 2011.
3. The maximum aggregate
amount of State CTP Funds
E
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
B. Airport Economic Development Area
(4) continued...
4. that can be recaptured is
limited to $5 million.
Current status:
The first Certified Tech Park Funds were
received from the State on 12/20/11 in the
amount of $812,791. This amount represents
income taxes withheld from wages paid to
employees located at the "Office Building,"
IPND and the ND /IU Medical Campus.
None of the funds were generated by any
activity at Ignition Park or any of the retail
stores.
Use of funds:
• State CTP Funds can be used for a
limited number of purposes, all of
which must be activities with the CTP
boundaries. The list of permitted uses
includes:
1. Acquisition, construction,
improvement, planning or
equipping of facilities.
2. Repayment of debt incurred
for financing associated with
the above.
3. Establishment of augmenting
a debt service reserve
associated with debt.
4. Operation of facilities
• Notre Dame has immediate uses for
the State CTP Funds, including:
10
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
B. Airport Economic Development Area
(4) continued...
1. Payment of the operating
expenses of the IPND facility.
2. Equipping the IPND facility.
3. Planning /engineering costs of
Phase II of IPND.
Mr. Inks noted that in the original submittal
to the State of Indiana for designation as a
Certified Technology Park, there was a
request for an operating grant for this first
building at Innovation Park. The business
plan that was submitted, along with the
application, showed that during the lease -up
period, there were anticipated to be
significant losses from operating that facility.
That grant for operating costs never came
through. At this point, the University, or its
Foundation, has been funding the operating
losses at Innovation Park.
Proposal:
The Mayor has reviewed and supports the
proposal that the city and Notre Dame share
equally in the aggregate $5 million amount of
State CTP Funds.
• On an annual basis, if either party
does not have needs to consume 50%
of the State CTP Funds received that
year, the other party may draw
unused funds to the extent they can be
spent on permitted uses.
• Once either party has drawn an
aggregate $2.5 million in State CTP
Funds, no additional funds may be
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
B. Airport Economic Development Area
(4) continued...
• drawn by that party without approval
of the other party.
Mr. Downes asked what happens when the
$5 million is gone. Mr. Inks responded that
there will be no more supplement.
Mr. Varner stated he thought it important that
the city secure its interests. He is happy with
the 50/50 split.
Mr. Davis expressed his assumption that this
only works if there are plans going on for
both Innovation Park and Ignition Park. Ms.
Jones answered that this is not necessarily
true. The city is allowed to recapture the
money spent on design plans /engineering
costs.
Mr. Varner wondered whether he misread: he
thought once the $2.5 million benefited
Innovation Park, then the balance was
available for Ignition Park. Mr. Inks said
that is correct. However, the language does
say if Innovation Park requires the $2.5
million, needs additional funding, then the
Innovation Park could ask the city for
additional funding. The city would not have
to approve the request.
Mr. Davis asked if such request would have
to come back to the Redevelopment
Commission. Mr. Inks responded that it
would.
Mr. Downes clarified that these funds cover
12
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
B. Airport Economic Development Area
(4) continued...
fiscal year July 1, 2010, to June 30, 2011,
then asked how much money the city has
spent that would fit into this in this current
fiscal year of July 1, 2011, to June 30, 2012.
Mr. Inks responded that all of the
infrastructure in Phase I would qualify
along with the design costs. The tech park
agreement required the city to fund the
demolition and the remediation of the site.
Those costs cannot be reimbursed.
Ms. Jones noted that the Redevelopment
Commission did nothing in the application of
the Certified Tech Park Funds. Notre Dame
did all of the leg work and applied for it and
they've been a really good partner to the city.
All that money that was in there was
generated through a Notre Dame facility.
Also, if the city is considering having some
kind of facility down at Ignition Park, the
future funds would be of good use as an
incentive to someone to develop a building.
Mr. Davis expressed his concern for the city
and the possibility of it having more to lose.
Upon a motion by Mr. Davis, seconded by
Mr. Downes and unanimously carried, the
Commission accepted the staff report on
proposed uses for the Certified Technology
Park Fund for this fiscal year.
Mr. Inks requested the Commission consider item
6.G.(2) at this time. There was no objection and the
item was so moved.
13
COMMISSION ACCEPTED THE STAFF REPORT ON
PROPOSED USES FOR THE CERTIFIED
TECHNOLOGY PARK FUND FOR THIS FISCAL
YEAR.
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
G. Other
(2) Leasing Agreement with CBRE /Bradley
for Commission -owned properties
(130/202 E. Sample and 329 S Lafayette).
Mr. Kain noted that on March 6, 2012,
Redevelopment staff received a Request for
Proposal (RFP) from a local broker
representing a high tech company. This
company is looking to lease approximately
8,000 — 10,000 sq. ft. of office and lab space
in the area. The RFP requests a response
from the Commission for two of its buildings
— Schillings Building at 329 Lafayette and
the Sinco Pool Building at 130/202 E.
Sample.
CBRE/Bradley has submitted a service
contract for responding to the RFP on behalf
of the Commission. Terms of the agreement
are include:
1. CRBE/Bradley will act as the
Commission's broker in order to
complete a leasing proposal for a
potential tenant in the two
Commission -owned properties stated
above.
2. The Commission agrees to pay broker
$2,250 to complete the Request for
Proposal issued by the potential
tenant. CBRE will additionally
coordinate all efforts required in the
proposal and engage in negotiations
and other discussions with the
potential tenant. If the Commission
property is leased by the tenant, then
CBRE will receive an additional
commission of $3,500.
14
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
G. Other
(2) continued...
The total fee for this service is $5,750 with
$3,500 being paid to the broker only if one of
the above mentioned properties is leased.
Staff requests approval of the attached
contract with CBRE/Bradley.
Mr. Varner asked if this was a percentage of
the gross lease. Mr. Kain responded that it
would be a five -year lease and that the city
was given a flat -fee discount.
Mr. Inks noted that typically the city would
go through a disposition process on these
properties, which has not been done, and
we'd hire a company or realtor firm to
represent us in the marketing. In this case
SINCO was purchased as part of an
acquisition strategy for the eventual
expansion of Ivy Tech. The Schillings
building was bought as part of an acquisition
strategy to create a development block across
from Coveleski Stadium. In both properties
now, the potential uses have changed. Ivy
Tech has a new Chancellor and its plans have
changed, and Schillings sits next to what is
now going to be the VA hospital instead of a
development block. There is a technology
firm that's looking to stay in the area and
needs interim space before moving on to
Ignition Park. So one of these properties
could be of use and staff approached CBRE
to help us respond to the request for proposal.
Mr. Davis asked if we approached any other
realty companies. Mr. Inks responded that
staff has not. Staff has experience working
15
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
G. Other
(2) continued...
with CBRE and knew it could give us a hand
immediately.
Mr. Davis asked what CBRE's track record
was. Mr. Inks responded that in this case
staff needed CBRE to lend its expertise as
real estate professionals to put together an
offer for a property. The type of business
does not come into play in terms of the offer.
Staff needed CBRE's expertise to obtain
estimates for build -out of tenant
improvements to satisfy the needs of the
potential tenant.
Upon a motion by Mr. Downes, seconded by
Mr. Davis and unanimously carried, the
Commission approved the Leasing
Agreement with CBRE/Bradley for
Commission -owned properties (130/202 E.
Sample and 329 S Lafayette).
B. Airport Economic Development Area
(5) Memorandum of Understanding with
Union Station Properties for the
Renaissance District, Phase I.
Mr. Relos noted that at the Commission
meeting on March 13, the South Bend
Redevelopment Commission unanimously
approved a five point terms agreement
relative to the first Phase of the Renaissance
District Project proposed for the southern end
of the central business district. The action
requested by staff at that meeting was
Commission approval of the terms that
16
COMMISSION APPROVED THE LEASING
AGREEMENT WITH CBRE /BRADLEY FOR
COMMISSION -OWNED PROPERTIES (130/202 E.
SAMPLE AND 329 S LAFAYETTE).
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
B. Airport Economic Development Area
(5) continued...
would make up the action points within a
Memorandum of Understanding to be
brought to the Commission for approval.
The terms approved at the Commission
meeting are the same as those included in the
Memorandum of Understanding, summarized
as follows:
Phase 1 of the project includes a request to
the Redevelopment Commission for the
following:
Sell the former Millennium
Environmental (ME) property to USTC for
$42,500 (the Commission's offering price).
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
17
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
B. Airport Economic Development Area
(5) continued...
street vacation subject to an MOU or an
agreement with the Redevelopment
Commission on this project.
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
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.
Mr. Relos noted that it is the intent of staff
and the development team to make periodic
progress reports to the Commission as action
items are achieved.
Mr. Downes stated that the city has made
18
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
B. Airport Economic Development Area
(5) continued...
certain commitments to Ignition Park to
provide power there. This won't interfere
with that commitment in any way, will it?
Mr. Inks responded that this provides greater
power throughout that area which will help
meet those commitments. Mr. Relos added
that the eventual need is a redundant power
source.
Upon a motion by Mr. Downes, seconded by
Mr. Varner and unanimously carried, the
Commission approved the Memorandum of
Understanding with Union Station Properties
for the Renaissance District, Phase I.
C. West Washington - Chapin Development Area
(1) Development Agreement with South Bend
Heritage Foundation , Inc. for
rehabilitation of 501 W. Washington St.
(former Rushton Bldg).
Mr. Relos noted that on October 25, 2011,
the Commission entered into a Memorandum
of Understanding (MOU) with South Bend
Heritage Foundation (SBHF) for the
rehabilitation of the historic Rushton
Building, at the northwest corner of W.
Washington and William Streets. Because
the Rushton was built with common kitchen
and dining areas, and has stood vacant since
2002, extensive remodeling of the building is
required. The building will be converted into
a 23 -unit, low -to- moderate income senior
housing complex.
COMMISSION APPROVED THE MEMORANDUM OF
UNDERSTANDING WITH UNION STATION
PROPERTIES FOR THE RENAISSANCE DISTRICT,
PHASE 1.
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
C. West Washington- Chapin Development Area
(1) continued...
Total development costs are estimated to be
$3.4 million. Funding for the project will
come from $2.8 million Low Income
Housing Tax Credits and $277,700 Historic
Tax Credits. To fully fund the project,
$322,300 in West Washington Chapin
Development Area TIF was approved. To
facilitate this work, SBHF is granting the
Commission access to the site via an Access
Agreement.
Commission improvements will allow off -
street parking for residents and visitors,
necessary site utility upgrades, sidewalks and
curbs, landscaping and lighting, exterior tuck
pointing and cleaning, and new thermo
windows.
Commission participation was contingent on
SBHF being granted the Low Income Tax
Credits through the Indiana Housing &
Community Development Authority, which
were granted last month. As part of the
MOU, the parties are to enter into a
Development Agreement in substantially the
form as Exhibit B of the MOU. This
Development Agreement is attached to this
staff report.
Construction is scheduled to begin October
2012, with project completion October 2013.
Staff requests Commission approval of this
Development & Access Agreement, to allow
this signature building to be repurposed into
a senior housing complex on the edge of the
20
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
C. West Washington- Chapin Development Area
(1) continued...
downtown area.
Mr. Davis asked when the job would be bid
out. Mr. Relos responded the intent is to bid
it in October 2012.
Upon a motion by Mr. Downes, seconded by
Mr. Varner and unanimously carried, the
Commission approved the Development
Agreement with South Bend Heritage
Foundation, Inc. for rehabilitation of 501 W.
Washington St. (former Rushton Bldg).
(2) Authorization for Entry Upon and the
Temporary Use of Private Property (501
W. Washington, 508 & 512 W. Colfax).
Upon a motion by Mr. Downes, seconded by
Mr. Varner and unanimously carried, the
Commission approved Authorization for
Entry Upon and the Temporary Use of
Private Property (501 W. Washington, 508 &
512 W. Colfax).
D. South Side Development Area
(1) Proposal for survey services for the
Erskine Golf Course Drainage Study.
Mr. Relos noted the memorandum is a
professional services proposal from
Wightman Petrie to provide survey services
for the Erskine Golf Course Drainage Study.
Over the past several years, the city has
instituted or planned a variety of
infrastructure upgrades around the Erskine
21
COMMISSION APPROVED THE DEVELOPMENT
AGREEMENT WITH SOUTH BEND HERITAGE
FOUNDATION, INC. FOR REHABILITATION OF 501
W. WASHINGTON ST. (FORMER RUSHTON
BLDG).
COMMISSION APPROVED AUTHORIZATION FOR
ENTRY UPON AND THE TEMPORARY USE OF
PRIVATE PROPERTY (501 W. WASHINGTON, 508
& 512 W. COLFAX).
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
D. South Side Development Area
(1) continued...
Golf Course area. Improvement projects like
the Erskine Plaza Pond project, proposed
improvements to the intersection of Ireland -
High, and the proposed Fellows- Chippewa
connector project all create opportunities to
improve the drainage and traffic circulation
around the course.
As part of both the proposed Fellows -
Chippewa project and the proposed Ireland -
High intersection project,, there are
opportunities to improve surface and
overflow drainage that flows into the golf
course area and reduce course flooding and
damage as well as reduce the drainage
feature costs associated with both of the
proposed infrastructure projects. The
opportunity to develop connected pond
systems on the course can reduce the costs
associated with pipe work and storm line
constraints on the south side storm water
network.
The attached proposal contemplates survey
services in two formats:
Option 1. Survey services via aerial
photography - $18,769
Option 2. Survey services via land
based survey - $21,016
Staff would request approval of a budget cap
of $22,000 for survey services with an
overage allowance for Option 2 based on
estimated costs for potential overage costs
based on the amount of area to be surveyed.
22
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
D. South Side Development Area
(1) continued...
The preferred method for overland
topographic survey would be the aerial
survey (Option 1), but because of the early
spring and the budding of trees, it might not
be practical to do Option 1 at this late point
in the early Spring season.
Staff requests approval of the proposal with a
budget cap of $22,000.
Mr. Varner asked if we were looking at
improvements /enhancements to the golf
course. Mr. Inks responded that there are
improvements to the golf course in a sense
that cost effective improvements that are
roughly equal to the cost of just piping
through the golf course. There will be two
detention ponds that would be built on the
course that would take care of part of the
drainage that is a problem in the area. There
will be overflow piping near the top of those
so that when a certain level is reached the
water will flow towards Chippewa Street
where there is a retention basin/sewer
system. It is not a golf course enhancement
project, but a drainage project that will
enhance the course.
Upon a motion by Mr. Downes, seconded by
Mr. Varner and unanimously carried, the
Commission approved the Proposal for
survey services for the Erskine Golf Course
Drainage Study in the not -to- exceed amount
of $22,000.
23
COMMISSION APPROVED YHE PROPOSAL FOR
SURVEY SERVICES FOR THE ERSKINE GOLF
COURSE DRAINAGE STUDY IN THE NOT -TO-
EXCEED AMOUNT OF $22,000.
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
6. NEW BUSINESS (CONT.)
E. Northeast Neighborhood Development Area
There was no business in the Northeast
Neighborhood Development Area.
F. Douglas Road Economic Development Area
There was no business in the Douglas Road
Economic Development Area.
G. Other
(1) Correction to Letter of Engagement for
Outside Legal Counsel.
Ms. Leonard -Inks noted that the Legal
Department wants this proposed letter of
engagement, updated by Interim City
Attorney, Aladean DeRose, approved instead
of the one submitted and approved at the
March 13, 2012, meeting of the
Redevelopment Commission.
Upon a motion by Mr. Downes, seconded by
Mr. Varner and unanimously carried, the
Commission approved the Correction to
Letter of Engagement for Outside Legal
Counsel.
7. PROGRESS REPORTS
A. Tax Abatement
Mr. Inks noted that at last evenings Common
Council meeting, the Council approved a change to
the tax abatement ordinance, changing the effective
date for the annual report from March 31, 2012, to
June 15, 2012. That allows staff to combine our
annual report and the CF 1 report that is done for
the Council.
24
COMMISSION APPROVED THE CORRECTION TO
LETTER OF ENGAGEMENT FOR OUTSIDE LEGAL
COUNSEL.
PROGRESS REPORTS
South Bend Redevelopment Commission
Regular Meeting —March 27, 2012
8. NEXT COMMISSION MEETING
The next meeting of the Redevelopment Commission is
scheduled for Tuesday, April 10, 2012 at 4:00 p.m.
9. ADJOURNMENT
There being no further business to come before the
Redevelopment Commission the meeting was adjourned
at 4:54 p.m.
Donald E. Inks, Director
25
NEXT COMMISSION MEETING
ADJOURNMENT
Marcia I. Jones, President