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HomeMy WebLinkAbout2 MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING April 10, 2012 4:00 p.m. 227 West Jefferson Boulevard Presiding: David A. Varner, Vice President South Bend, Indiana 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Dr. David Varner, Vice President Mr. Greg Downes Mr. Donald Alford, Secretary Mr. Henry Davis, Jr. Ms. Marcia Jones, President Ms. Stephanie Spivey 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. Ann Kolata, Senior Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mr. Mark Neal, City Controller Ms. Beth Leonard Inks, Community Development Ms. Kathy Hahn, Economic Development Ms. Patti Lesniewicz, Economic Development Mr. Richard Nussbaum, Sopko, Nussbaum, Inabnit & Kaczmarek Mr. Gary Gilot Mr. Kevin Smith, Union Station Properties Mr. Shane Fimbel Mr. Dave Matthews Mr. Mark Seaman, Prism Science Mr. Beene Veen Mr. LeRoy King Mr. George W. Prosper Mr. Brad Chamness Mr. Brian Siqueira Mr. Joe Iams, Tire Rack Mr. Nicholas Hansley Mr. Marvin Crayton Mr. Kevin Allen, South Bend Tribune South Bend Redevelopment Commission Regular Meeting —April 10, 2012 Mr. Rich Deahl, Barnes and Thornburg Mr. Bob Strzlecki, Controller, Lock Joint Tube Mr. Ted Lerman, President, Lock Joint Tube Mr. David Murphy Mr. Mike Bugonski Ms. Mo Miller Mr. Inks noted that Commissioner Stephanie Spivey, representing the South Bend Community School Board, was hoping to be present at this meeting. At this same hour the school corporation is presenting its Teacher of the Year Award and Ms. Spivey needed to attend that event. 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Tuesday, March 27, 2012. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Tuesday, March 27, 2012. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF TUESDAY, MARCH 27, 2012. Redevelopment Commission Claims submitted April 10, 2012 for approval. 324 AIRPORT AEDA Meridian Title Corporation Ziolkowski Construction, Inc Daniel L Todd & Agnes M Todd Metropolitan Title of Indiana LLC Sopko, Nussbaum, Inabnit & Kaczmarek South Bend Tribune Jackson Services Wightman Petrie L.L. Gean Construction Co. 420 FUND TIF DISTRICT -SBCDA GENERAL Sopko, Nussbaum, Inabnit & Kaczmarek CB Richard Ellis South Bend Tribune DTSB South Bend Water Works CB Richard Ellis All Phase 2 300.00 Lots 1 -3 ignition Park 2nd Minor 195,863.40 Animal Control 54,997.90 Right of Way Olive/U.S 20 480,000.00 4043 S Michigan 1,327.50 Legal Services 24.27 Publication of notice 59,128.00 EMI Bldg 3,745.00 Former EMI Bldg Demo Plans 18,342.72 Voorde Pk Improvements 2,148.75 Legal Services 594.29 LaSalle Hotel Management Fees 24.27 Snow Removal RFP Publication 20,625.00 Beautification Program 37.87 325 S Lafayette Blvd 1,107.53 March Management Fee LaSalle Hotel 24.45 LaSalle Hotel South Bend Redevelopment Commission Regular Meeting —April 10, 2012 3. APPROVAL OF CLAIMS (CONT.) 422 FUND Sopko, Nussbaum, Inabnit & Kaczmarek 1,597.50 Legal Services 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT DLZ 690.00 Engineering Work 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA #1 Christopher B. Burke Engineering 40,240.50 Fellows Street Improvements Ph II Lawson - Fisher Associates P.C. 23,964.28 S Main St to Lafayette Blvd 435 FUND DOUGLAS ROAD Abonmarche 2,100.00 SR 23 and Douglas Right Turn Lane $ 906,883.23 Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Claims submitted April 10, 2012, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Tax Abatements (1) Resolution No. 3019 approving an application for real property tax deduction for property located at 7101 Vorden Parkway in the Airport Economic Development Area (Tire Rack). Ms. Hahn noted that the Tire Rack is a mail - order and e- commerce firm engaged in the business of selling performance tires, wheels, and accessories for passenger automobiles COMMISSION APPROVED THE CLAIMS SUBMITTED APRIL 10, 2012, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting —April 10, 2012 and light duty trucks. Tire Rack intends to construct a 36,000 sq. ft. building which will enable the expansion of technological resources and assets to further the growth and development of its e- commerce product distribution business. The estimated dollar value of the project, excluding land, is $6,500,000. Information about the construction contractors is not yet known, but will be available prior to the date set for granting the confirming resolution. Based on the information provided, staff believes Tire Rack will qualify for a three- to five -year real property tax abatement. Based on a $6,500,000 project cost, the total taxes to be abated during a five -year abatement period would be $496,345. Taxes to be paid during that period are $471,939. Total taxes to be abated during a three -year abatement are estimated at $342,052 with total taxes to be paid during a three -year abatement is estimated at $238,918. It is estimated that the total project will create at least 30 new jobs with a new annual payroll of at least $1,600,000. The project will maintain 396 existing full -time jobs with an annual payroll of $26,500,000. Mr. Davis expressed concern about approving the tax abatement before all the information is known. Even with complete information, companies often renege on their commitments. Mr. Varner agreed that not meeting commitments is a problem, but explained the matrix of criteria with which abatement terms are evaluated. Complete information is required by the time the confirming resolution is approved by the Common Council; the term of abatement will be set at 4 South Bend Redevelopment Commission Regular Meeting —April 10, 2012 that time. At this point, the Redevelopment Commission is simply asked for its sign -off on the abatement, whatever term it qualifies for by matrix. Mr. Inks added that from here this item goes to the Common Council for declaratory resolution and at that time staff would still have information that is pending. The final step to the Common Council for a confirming resolution, all of the information will be in place. So before final action is taken by the Council, it is known what the commitments of the company are. Mr. Downes added that without the project, there would be no new taxes and no new jobs. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3019 approving an application for real property tax deduction for property located at 7101 Vorden Parkway in the Airport Economic Development Area (Tire Rack). (2) Resolution No. 3020 approving an application for real property tax deduction for property located at 1217 South Walnut Street in the Airport Economic Development Area (Lock Joint Tube). Ms. Hahn noted that Lock Joint Tube, LLC, will invest between $8 and $9 million in the purchase and installation of new manufacturing, information technology, and logistical distribution equipment to expand its production capabilities at its Walnut Street facility. This equipment will increase the length, wall thickness and width of steel tubing that can be manufactured as well as 5 COMMISSION APPROVED RESOLUTION NO. 3019 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 7101 VORDEN PARKWAY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (TIRE RACK South Bend Redevelopment Commission Regular Meeting —April 10, 2012 enhance the coating, weld capabilities and overall quality control standards for production of finished goods. These increased capabilities will expand the types of products the Lock Joint Tube can manufacture and will expand its existing markets, plus open new markets such as automotive axles, roll -over production systems and other heavy structural applications. Total taxes to be abated during the five -year abatement period range from $285,808 to $329,933 depending upon the final amount the company will invest in the new equipment. The taxes to be paid are expected to range from $663,675 to $706,631. The real property tax abatement petition describes two investments in two projects. They are going to move and reconstruct their roof, raising approximately 60,000 sq. ft of roof from 15 ft. to 40 ft. They are also going to construct a new 30,000 sq. ft. addition for additional manufacturing, storage and shipping space. The real estate investments will cost between $1 million and $1.6 million. Lock Joint Tube does not have all of the information on its contractors at this point. However, they want to use Mid - States Construction as the primary contractor and a prefabricated metal building, which is not available locally, will be a large purchase. Based on preliminary information, staff thinks they will qualify for a four- or five - year property tax abatement. All of this information will be firmed up before the date of obtaining the confirming resolution. Based on a cost of $1 million with a four or five year term, the taxes abated will range from $34,000 to $40,000 and the taxes paid will range from $223,000 to $281,000. Based on a cost of $1.6 million with a four or South Bend Redevelopment Commission Regular Meeting —April 10, 2012 five year term, the taxes abated would range from $70,000 to $82,000 and the taxes paid will range from $258,000 to $329,000. According to the petitions, it's estimated the two projects will create seven to eleven new permanent full -time jobs with a payroll of $210,000 to $330,000 and the projects will maintain 56 existing permanent full -time and no existing part-time jobs representing and annual payroll of $2,300,000. Mr. Deahl, tax attorney for Lock Joint Tube, noted that Lock Joint Tube is a large manufacturer of mechanical and structural grade steel tubing. At the facility on Walnut Street, there is a large portion of the building that is underutilized because of its low roof height. This project will invest over $1 million in that portion alone to make it suitable for manufacturing and use that space to house new equipment valued at $8 million allowing them to enter new markets. Lock Joint Tube asks for favorable consideration. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3020 approving an application for real property tax deduction for property located at 1217 South Walnut Street in the Airport Economic Development Area (Lock Joint Tube). (3) Resolution No. 3021 approving an application for personal property tax deduction for property located at 1217 South Walnut Street in the Airport Economic Development Area (Lock Joint Tube). Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the 7 COMMISSION APPROVED RESOLUTION NO. 3020 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1217 SOUTH WALNUT STREET IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (LOCK JOINT TUBE). COMMISSION APPROVED RESOLUTION NO. 3021 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY South Bend Redevelopment Commission Regular Meeting —April 10, 2012 Commission approved Resolution No. 3021 approving an application for personal property tax deduction for property located at 1217 South Walnut Street in the Airport Economic Development Area (Lock Joint Tube). Mr. Inks asked that Item 6.C.(7) be moved up on the agenda to be considered at this time. There was no objection and the item was so moved. C. Airport Economic Development Area (7) Staff report and recommendation for Renaissance District Phase II. Mr. Schalliol noted that on March 13, 2 -12 the Redevelopment Commission was presented with an overview of the project being called "The Renaissance District." The project would be located at the southern end of downtown, bounded by South Street, Lafayette Boulevard, Sample Street and Scott Street. The Renaissance District would allow Union Station Technology Center (USTC), which is now located in Union Station, to expand south of the rail tracks into the Ivy Tower building, with additional plans for a larger, dense, mixed use community technology center. While Phase I of this project provided an updated power infrastructure, Phase II includes environmental remediation and rehabilitation of the Ivy Tower building. Plans for the rehabilitated space include data center environments, advanced manufacturing and rapid prototyping businesses, software development companies, and supercomputing capabilities, along with a centralized energy source to provide recycled energy for electric and thermal needs. USTC and The Renaissance District are founded on LOCATED AT 1217 SOUTH WALNUT STREET IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (LOCK JOINT TUBE). South Bend Redevelopment Commission Regular Meeting —April 10, 2012 four core principles - - Space, Power Connectivity, and Innovation. The first phase of the project covered power and connectivity. The Commission was asked to participate in an extension of conduits that would bring power to the site to allow for new development to occur in the Ivy Tower building. The Commission was also asked to partner in the vacation of United Drive to allow the connectivity between the north side of the tracks and the south side. Phase II of the project, being considered today, is the Space aspect. As the Union Station Technology Center grows to capacity, the next logistical step is to acquire more land and space adjacent to the rail corridor to grow the technology center. The Renaissance District 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 Renaissance District into the Ignition Park campus. Mr. Smith further explained the Phase II portion of the project. He stressed how important it was to move the power component forward because that was essential before he'd consider the space portion of the project. USTC had to have the power because Union Station is Z South Bend Redevelopment Commission Regular Meeting —April 10, 2012 predominantly a data center and a carrier hotel which consumes a great deal of power. It anticipates needing in the neighborhood of 60 megawatts of power. Downtown South Bend currently has just under 18 megawatts of power. The Union Station building is landlocked. It will be out of capacity within a year and a half. Expansion to the other side of the railroad track is the only way to grow the business at its current location, or even in the urban South Bend area. When the study began, Mr. Smith had been working on energy and the energy - efficiency paradigm for 20 years. We have enterprise - type of data centers, which is traditional - standard and racks, etc. There is also containerized computing that is coming to the forefront. More space will allows USTC to accommodate the shipping containers. We also believe that the space will allow us to manufacture data pods, use them in the Ivy Tower itself for maximum power flexibility. USTC should be able to compete nationally for large scale data center operations. Mr. Smith noted that USTC is very interested in providing educational opportunities with this project as well. The Studebaker Admin Building may help facilitate that development. He has had initial discussions with Jim Howard, owner of the Studebaker Admin building. If coordination could be arranged, there would be under one roof, or interconnected, 1.3 million sq. ft. USTC envisions an entrance to the District through the front door of Union Station. A tunnel would take you under the tracks into the former Ivy Tower building. 10 South Bend Redevelopment Commission Regular Meeting —April 10, 2012 Mr. Chamness, business representative for the Sheet Metal Workers, and representing the St. Joe Valley Building trades also, said this is exactly the kind of project that we need to keep our young college graduates in the community. Mr. Smith owns Deluxe Sheet Metal and has been involved in the community for 40 years. He uses local contractors for his construction and will hire as much as possible from the community. Mr. Smith said that it became clear to him that there has to be an educational component to this project also. We don't have an adequate labor supply in this community. We'd like to work with Ivy Tech and a number of other institutions so we can provide training for high paying, computer precision manufacturing jobs. Mr. Bugonski spoke about the social element of the project. Mr. Smith has supported many non - profit organizations and provides shared services for them through Union Station. Mr. David Murphy told about students he works with in Notre Dame's Esteem program. It is a graduate level program for science and technology students to teach them business and entrepreneurship skills. Six or seven of the current class have been so taken with Mr. Smith's vision that they have personally told him they would like to stay in South Bend and help to make it a reality, if they could just make enough to live on while they do. These are highly capable people willing to give themselves to making this project succeed. He wants to bring these 11 South Bend Redevelopment Commission Regular Meeting —April 10, 2012 young adults and his program to the table for the Renaissance District. Mr. Smith said that The Renaissance District's urban setting appeals to the young generation who will be working in the cutting edge technologies. The time and location are right for this project. Mr. Smith said he personally wants to fight the attitude that business can't succeed in South Bend. Those students understood. They had great questions about the District. They wanted to stay in South Bend and be part of making this vision happen. Mr. Smith introduced Mr. Fimble, Mr. Hansley and Mr. Siqueira who each spoke about catching Mr. Smith's vision and coming to South Bend at significant personal cost to help it become a reality. Mr. Schalliol explained Phase II of the Renaissance District project and the Memorandum of Understanding being considered at this meeting. While Phase I of the project contemplated and worked to achieve two of the four core components of the project, power and connectivity, Phase II is about Space and Innovation. The key element of Phase II deals with the remediation, rehabilitation and repurposing of the Ivy Tower structure into the usable building inventory of South Bend. From a redevelopment perspective, there are two methods of facilitating redevelopment of a site -- (1) raze and wait or (2) remediate, rehabilitate and repurpose. While the City has seen successes with the first type of 12 South Bend Redevelopment Commission Regular Meeting –April 10, 2012 redevelopment, several stellar projects in the city over the last several years were accomplished by the latter method, and Phase II of this project would fit into that category. The challenge with brownfield or greyfield redevelopment is that there are many more impediments to site development than development on a greenfield site. By playing a role in obstacle removal and burden sharing, brownfield and greyfield redevelopment begins to balance with the cost delta of greenfield development. In Phase II of the Renaissance District project, staff is requesting the Redevelopment Commission perform the role of site preparation to help facilitate reuse of the Ivy Tower site. The proposal, and the subsequent Memorandum of Understanding for Phase II contemplates the Commission doing the following two items: 1. Obtain a Phase I and II Environmental Survey of the Ivy Tower Building, and enter into an Environmental Agreement regarding remediation of the Ivy Tower Building and property. The studies contemplate two potentially significant environmental issues on- site — asbestos and lead based paint. Based on an estimate provided by the environmental consulting team, the projected cost of total building remediation is $2,611,189 with $655,754 for asbestos remediation and $1,955,435 for lead based paint abatement. As a component of the environmental remediation of the site, the City will enter into an Environmental Agreement ( "EA ") regarding the Ivy Tower Building. 13 South Bend Redevelopment Commission Regular Meeting —April 10, 2012 2. Upon closing on the Ivy Tower Building purchase by USTC, provide $3,500,000 of improvements to structurally stabilize and enhance the building for its reuse. 3. Work with Union Station or its affiliate on planning the Ivy Tower improvements in order to best adapt the Ivy Tower Building as a collaborative, multi - tenant facility to revitalize the Renaissance District. The total Commission investment in to Phase II of the project is projected to be $6,150,000. In exchange for financial participation by the City and Redevelopment Commission in Phase II of the project, the Union Station Technology Center group or its affiliate will do the following: 1. Take all reasonable steps to close on the purchase of the Ivy Tower Building to facilitate the USTC, as well as to provide an opportunity for other businesses to expand and relocate within the Ivy Tower Building, including but not limited to, providing the Commission with a Business Plan which shows the cooperative reuse of multiple businesses within the Ivy Tower Building, as well as providing reasonable space within the Ivy Tower Building for use by the Commission and other public agencies. 2. Make no less than $1,000,000 in improvements each year in the Renaissance District for a ten (10) year period, and provide the Commission on an annual basis with proof of compliance with this 14 South Bend Redevelopment Commission Regular Meeting —April 10, 2012 Commitment. 3. To secure a return to the Commission for its Commitment, in Section 1(a)(ii), Kevin M. Smith shall guarantee Union Station will make no less than Three Million Five Hundred Thousand and 00 /100 ($3,500,000.00) Dollars in improvements in the Renaissance District over a five (5) year period. In the event Union Station fails to make such improvements, the Commission without any prejudice to enforce the Agreement against Union Station, may only enforce this Agreement against Kevin M. Smith for any deficiency in the required amount of improvements over the five (5) year period. 4. Provide the Commission with an annual report concerning the progress of Union Station's Phase II Commitments. To the extent possible, this report shall be at a regularly scheduled Commission meeting. Phase II of the Renaissance Center project is key to the success of the overall project. By having 800,000 square feet of adjacent space to the USTC which can be utilized in a multi - tenant format allowing a variety of uses, producers, and end users to meet and collaborate in one area, the opportunity for innovation, job creation and spin -off development is maximized. Furthermore, the opportunity to reutilize existing structures with targeted investment as opposed to acquiring, razing, and waiting for new development to occur, or allowing the new development to happen on our fringes in greenfield areas, is a maximization of resources and opportunities for the City of South Bend. 15 South Bend Redevelopment Commission Regular Meeting —April 10, 2012 Staff requests Commission approval of Phase II of the Renaissance District project and the Memorandum of Understanding. Mr. Davis expressed his enthusiasm for the project. He would like to see immediate benefit for the initial tax dollars. He specifically mentioned training programs connected to all schools and the hiring of local contractors, particularly seeing that the WBE ordinance statewide and federal be enforced. This would make it a win -win for the total community. Mr. Varner expressed that he, too, is very excited. He has always thought that the best investment is in existing businesses. He thinks this is the jump start the city's been waiting for. Upon a motion by Mr. Downes, seconded by Mr. Davis and unanimously carried, the Commission approved the Memorandum of Understanding, subject to final review of Exhibit #2, Environmental Agreement regarding the Ivy Tower Building. Mr. Smith noted that his mission is to exceed the Commission's expectations. B. South Bend Central Development Area (1) Staff report, final site plan and development specifications for the disposition parcel at Jefferson & Niles. (former Troeger site) Mr. Relos noted that on June 14, 2011, the Commission was presented with preliminary development plans from David Matthews for the former Troeger site at the northeast corner of Jefferson and Niles. On June 28, 16 COMMISSION APPROVED THE MEMORANDUM OF UNDERSTANDING, SUBJECT TO FINAL REVIEW OF EXHIBIT #2, ENVIRONMENTAL AGREEMENT REGARDING THE IVY TOWER BUILDING. South Bend Redevelopment Commission Regular Meeting —April 10, 2012 2011, the Commission approved an Agreement for Sale of Land with Mr. Matthews for this property. As part of this Agreement, Mr. Matthews will construct 10 townhomes as seen in the attached plan, and not commit to seek tax abatements on the development. Items precedent to closing are: 1. Commission approval of the final site plan and development specifications 2. Proof of financing 3. View rights agreement 4. Favorable environmental conditions Item 2 is satisfied by this project being self - financed by Mr. Matthews. Item 3 was completed via a view easement granted by the Redevelopment Authority. Item 4 was completed via further environmental study. Today Mr. Matthews presents Item 1, the final site plan and building specifications, for Commission approval. Mr. Matthews noted the updated site plan. Initially the plan was to have a commercial building on the corner and a second commercial building and ten row homes. The site plan has been revised a bit. The Board of Public Works wanted to eliminate the perpendicular parking that was proposed. The commitment now is for Mr. Matthews to build ten row houses in three years. Shown were examples of two and three story townhomes at two different prices; townhomes at $225,000, which would enable someone making $40,000 to $50,000 per 17 South Bend Redevelopment Commission Regular Meeting —April 10, 2012 year to afford one. Mr. Matthews noted that at the East Bank Townhomes, the price point was $180,000, but people added basements and roof -top decks which then raised the price. They will close at between $380,000 and over a half million each. Mr. Davis asked what color brick will be used. Mr. Matthews replied that they will be red in keeping with the structures around it. Mr. Varner asked what the square footage was for a three story town home. Mr. Matthews answered 3,000 sq. ft. Lot size is 22 feet wide. Staff requests Commission approval of the final site plan and building specifications, to allow the development of this site into 10 single family townhomes. Upon a motion by Mr. Downes, seconded by Mr. Davis and unanimously carried, the Commission approved the final site plan and development specifications for the disposition parcel at Jefferson & Niles. (former Troeger site) (2) Contract for Sale of Land for 502 W. Western Avenue (former Harmon Auto Glass). Mr. Schalliol asked that this item be tabled due to some legal issues to work out. Staff will revisit this item at the next meeting. Upon a motion by Mr. Downes, seconded by Mr. Davis and unanimously carried, the Commission tabled Item 6.B.(2) C. Airport Economic Development Area 18 COMMISSION APPROVED THE FINAL SITE PLAN AND DEVELOPMENT SPECIFICATIONS FOR THE DISPOSITION PARCEL AT JEFFERSON & NILES. (FORMER TROEGER SITE) COMMISSION TABLED ITEM 6.B.(2) South Bend Redevelopment Commission Regular Meeting —April 10, 2012 (1) Staff report on acquisition of property. (1509 S. Scott St.) Mr. Relos noted that 1509 S. Scott was added to the Airport Economic Development Area's Acquisition List by Resolution No. 2668 on May 21, 2010. The property is a two story, three bedroom, 1,056 square foot single family residence. Resolution No. 3014 sets the acquisition value of the property at $5,400, the average value as determined by two independent appraisals. Staff requests approval of Resolution No. 3014, to allow for the acquisition of this property. Upon a motion by Mr. Downes, seconded by Mr. Davis and unanimously carried, the Commission approved Resolution No. 3014 related to acquisition of property in the Airport Economic Development Area (1509 S. Scott St.) (2) Staff report on acquisition of property. (725 -731 W. Indiana) Mr. Relos noted that 725 — 731 W. Indiana was added to the Airport Economic Development Area's Acquisition List by Resolution No. 2668 on May 21, 2010. The property is a double vacant lot at the northwest corner of Kendall and Indiana. Resolution No. 3015 sets the acquisition value of the property at $5,900, the average of two independent appraisals. Staff requests approval of Resolution No. 3015. Upon a motion by Mr. Downes, seconded by Mr. Davis and unanimously carried, the Commission approved Commission approved Resolution No. 3015 related to acquisition of property in the Airport Economic Development Area. (725 -731 W. Indiana) 19 COMMISSION APPROVED RESOLUTION NO. 3014 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (1509 S. SCOTT ST.) COMMISSION APPROVED COMMISSION APPROVED RESOLUTION NO. 3015 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (725 -731 W. INDIANA) South Bend Redevelopment Commission Regular Meeting —April 10, 2012 (3) Administrative Settlement for three commonly owned properties. (1509 S. Scott and 725 -731 W. Indiana) Mr. Relos noted that on April 10, 2012, the Commission approved Resolution No. 3014 and 3015, which authorized the purchase of these properties based on their average appraised value of $5,400 and $5,900 respectively. Staff has been working with the property owner to reasonably reach an agreement to acquire these properties. Under this agreement, the Commission would acquire the two vacant lots at 725 — 731 W. Indiana for $6,000, and the house and property at 1509 S. Scott for $25,000, for a total acquisition cost of $31,000. 1509 S. Scott is the last property on Scott Street not owned by the Commission, and is an important acquisition because Scott is planned to be the southern entrance to Ignition Park. Prior to appraisals being completed at 1509 S. Scott this past fall, the property was broken into and vandalized, with many items being removed for their scrap value. This dramatically lowered the appraised value. The house for the last several years has been assessed at $25,000 - $28,000. Similar houses acquired from property owners on this same street have ranged from $25,500 - $35,000. Because the house is not currently occupied, no relocation costs will be incurred. If the owner occupied this house, additional relocation costs of $25,000 would be expected. 20 South Bend Redevelopment Commission Regular Meeting —April 10, 2012 Staff feels the total acquisition cost of $31,000 is reasonable for these three properties, and requests approval of the administrative settlement. Upon a motion by Mr. Davis, seconded by Mr. Downes and unanimously carried, the Commission approved the Administrative Settlement for three commonly owned properties. (1509 S. Scott and 725 -731 W. Indiana) (4) Proposal for Groundwater Sampling in the Studebaker Area north of Sample St. Ms. Kolata noted that Ignition Park is enrolled in the Indiana Department of Environmental Management's Voluntary Remediation Program (VRP). Now that all previous structures have been removed, we need to submit a Remediation Work Plan to VRP by the end of June. This Work Plan will describe the environmental conditions at the site and our proposed remediation plan. Some environmental remediation and soil sampling has taken place as buildings have been demolished. However the groundwater has not been sampled in a number of years. Hull & Associates has submitted a proposal in the amount of $56,702 to perform the groundwater sampling using temporary sampling techniques. Once sampling results are received, Hull may propose the installation of permanent groundwater monitoring wells. That would be covered by a separate proposal from Hull. The staff recommendation is to approve the proposal from Hull & Associates in the amount of $56,702. This will allow us to move forward with the groundwater 21 COMMISSION APPROVED THE ADMINISTRATIVE SETTLEMENT FOR THREE COMMONLY OWNED PROPERTIES. (1509 S. SCOTT AND 725 -731 W. INDIANA) South Bend Redevelopment Commission Regular Meeting —April 10, 2012 sampling in order to submit our Remediation Work Plan to IDEM by the June 30 deadline. ***Mr. Downes asked if the plan for the monitoring wells was needed before June 30, 2012. Ms. Kolata said staff would have to plan on where they would be placed. They will be placed in right of way. Mr. Varner asked how long approval takes once staff submits the plan. Mrs. Kolata said the one submitted December 315` has not been responded to yet. Mr. Davis questioned how the ground water flows. Ms. Kolata explained that ground water flow towards the river. From when we tested back in the early 2000's, we believe that the pollution that was in the water has now receded. She explained the mother - daughter philosophy. That the mother - product is the contamination and the daughter - product is how the chemicals are broken down and changed so tests will show this. Some of the pollution is coming from southwest of Studebaker. Upon a motion by Mr. Downes, seconded by Mr. Davis and unanimously carried, the Commission approved the proposal from Hull & Associates for the scope of services and fee proposed. (5) Proposal for Phase I Environmental Update and Phase II Environmental Site Assessment. (Hamilton Body Shop and Towing) Ms. Kolata noted the that staff has been in discussions with the owners of Hamilton Body Shop and Towing for several years about the purchase of their property at 802- 22 COMMISSION APPROVED THE PROPOSAL FROM HULL & ASSOCIATES FOR THE SCOPE OF SERVICES AND FEE PROPOSED South Bend Redevelopment Commission Regular Meeting —April 10, 2012 812 S. Lafayette, 910-912 S. Lafayette and 901 -917 S. Lafayette. Recently the owners of Hamilton have indicated their interest in selling the property to the Commission. They are interested in an agreement for all three properties, with transfer of title taking place on a staged basis over a two year period. The property at 802 -812 S. Sample is adjacent to the Indiana Michigan Power sub- station and this property will be needed for I & M to expand its sub - station as part of Kevin Smith's Renaissance Project. The other two properties are adjacent to Ignition Park and are included in the master planning for Ignition Park. Phase I Environmental Site Assessments were completed in November 2008 for each of the three properties. They suggested additional environmental testing at each of the three locations. This work includes the use of ground penetrating radar to determine if any Underground Storage Tanks are still located on the properties, soil sampling, groundwater sampling and dye tracing of existing trench drains located in the buildings to determine if they are discharging to the sanitary sewer system. In addition, the Phase I Environmental Site Assessment must be updated within six months of acquiring title to the property. Wightman Petrie has submitted a proposal for Phase I updates for two of the properties as the third property is not expected to be acquired for about two years. The staff recommendation is to approve the proposal from Wightman Petrie in the amount of $20,800. This will allow us to move forward with the Phase I1 testing as soon as possible to determine if there are any environmental conditions at the properties 23 South Bend Redevelopment Commission Regular Meeting —April 10, 2012 and to update the Phase I assessments once a purchase agreement is finalized. Mr. Downes asked if there was a building on Lot 2 now. Ms. Kolata responded that there is a small garage on the property. The buildings are all occupied. Mr. Varner asked if negotiation is expected on the purchase price for Hamilton Body Shop and Towing. Ms. Kolata responded that following the environmental assessment staff would bring an offer from Hamilton Towing to the Redevelopment Commission. Upon a motion by Mr. Downes, seconded by Mr. Davis and unanimously carried, the Commission approved the proposal from Wightman Petrie for the scope of services and fee proposed. (Hamilton Body Shop and Towing) (6) Resolution No. 3011 approving and authorizing the execution of an Addendum to the Master Agency Agreement. (Mayflower Road Planning Study) Mr. Schalliol noted that Resolution No. 3011 approves an Addendum to the Master Agency Agreement for the Mayflower Road Planning Study. The purpose of this project is to examine the design parameters and costs associated with the construction of a roadway and bridge over the Indiana Toll Road connecting the intersection of Nimtz and Moreau to Cleveland and Mayflower. The design study would also look at the potential to incorporate or create joint access to the land parcels owned by the Indiana Toll Road (former state police post and ITR maintenance service point) along the roadway corridor. The roadway would allow 24 COMMISSION APPROVED THE PROPOSAL FROM WIGHTMAN PETRIE FOR THE SCOPE OF SERVICES AND FEE PROPOSED. (HAMILTON BODY SHOP AND TOWING) South Bend Redevelopment Commission Regular Meeting —April 10, 2012 connection of the Blackthorn Corporate Park to Hutsfield Square and Portage Prairie and create a new local road ITR cross point between Bendix Drive and Olive Road. The bridge concept is also an important linkage element for future pedestrian and bicycle circulation in the northwest corridor. The Nimtz Parkway Trail, proposed to be constructed from Moreau Court to the Blackthorn Golf Course entrance, would be able to connect into the network already in place in Hutsfield Square and along Cleveland Road. The bridge would be designed to incorporate pedestrian and bicycle access and allow a point of safe crossing over the Indiana Toll Road. Future trail sections along Nimtz would benefit from the bridge being in place providing additional connectivity. Staff requests approval of Resolution No. 3011 Mr. Downes asked if the intent is to have a couple of restaurants with access directly from the toll road, but also with access from Blackthorn Office Park. Mr. Scalliol responded that the intent is duel access. Mr. Varner asked if the property is owned by the Toll Road. Mr. Schalliol responded that it is. This is land that currently isn't productive for them, but they would be interested in having it become productive. So the Toll Road may sell it, lease it or develop it themselves. The challenge is that the Toll Road's land is on the south side, so we would have to take our road right through the middle of their site. The alternative is that we push the road over, away from Toll Road land on both the north and the south, but that would move Moreau Court farther east. We need to have the Toll Road in the 25 South Bend Redevelopment Commission Regular Meeting —April 10, 2012 conversation to see if they would allow the City an easement or sell the land rights. Mr. Davis asked if there was still a lot of interest in Blackthorn. Mr. Schalliol responded that there is interest in the area, for example, Tire Rack. Cressy & Everett is marketing the area for the City. It's a tough development market right now. Mr. Inks added that there is corporate park west of the roundabout. To the east is industrial land. Schafer Gear recently expanded its operations. There is a lot of acreage available for industrial development to the east of that intersection. Mr. Davis wondered whether the bridge would produce more interest. Mr. Downes thought it would. Mr. Varner asked what happened to the Blue Heron's exclusive rights to provide dining. Mr. Schalliol said that agreement is still in place. The Blue Heron doesn't want competition for banquet services, but a hotel nearby would enhance their ability to serve weddings. Mr. Davis has asked who controls Blackthorn Corporate Park. Mr. Schalliol responded that the Owner's Association controls the developmental aspects. Businesses all control their own business destiny in the park. Mr. Downes asked Mr. Inks for a report on development in Blackthorn at the next meeting. Mr. Inks said he would provide that. Upon a motion by Mr. Davis, seconded by COMMISSION APPROVED RESOLUTION No. 3011 APPROVING AND AUTHORIZING THE EXECUTION 26 South Bend Redevelopment Commission Regular Meeting —April 10, 2012 Mr. Downes and unanimously carried, the Commission approved Resolution No. 3011 approving and authorizing the execution of an Addendum to the Master Agency Agreement. (Mayflower 'Road Planning Study) D. West Washington- Chapin Development Area (1) Resolution No. 3016 accepting the transfer of real property from South Bend Heritage Foundation. Inc. (Hansel Center) Mr. Relos noted that on November 22, 2011, the Commission and South Bend Heritage, Inc. (SBHF) entered in to a Memorandum of Understanding (MOU), for the substantial renovation of the Hansel Center, located at 1045 W. Washington St. The MOU calls for the transfer from SBHF to the Commission of the Hansel Center, at such time as the use of WWCDA funds are needed to carry forward renovations. On April 3, 2012 the Board of Public Works awarded the Hansel Center project contract to Gibson Lewis, and we are now at the point in the renovation process where transfer of the property will soon be needed. Upon approval of Resolution No. 3016, a quit claim deed will be prepared so formal transfer from SBHF to the Commission can occur. Once the Commission's responsibilities under the MOU are completed, staff will present another resolution to transfer the property back to SBHF, so their final responsibilities may be met. Staff requests approval of Resolution No. 3016. 27 OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT. (MAYFLOWER ROAD PLANNING STUDY) South Bend Redevelopment Commission Regular Meeting —April 10, 2012 Mr. Davis noted that for the record, he is not in favor of this. He will remain consistent with his earlier votes. He's not been in favor because it drains the TIF funds from that district. The Hansel Center is a nice asset but it won't pay taxes back into the West Washington TIF. Mr.Relos said he believed the project would be taxable. Mr. Varner asked Mr. Inks whether the West - Washington TIF is broke. Mr. Inks said that the area generates about $400,000 in TIF each year. The TIF designation does not have an expiration date. The next priority will be the Rushton Apartments. Mr. Downes made a motion to approve NO ACTION TAKEN Resolution No. 3016. Mr. Varner seconded the motion. The vote was two in favor, one against. Mr. Metiever noted that the item will be brought back to the Commission at its next meeting. No action was taken today because the concurrence of three members is necessary to approve or disapprove of action. E. South Side Development Area (1) Relocation Agreement with American Electric Power for the Main - Lafayette Connector Project. Mr. Schalliol noted that the Relocation Agreement is for the relocation of facilities in and adjacent to the Main - Lafayette Connector project. While the roadway was designed to minimize impacts to AEP and other utilities, there still remained several points of intersect with both the transmission and the distribution network. For those service points in easements, the party causing /: South Bend Redevelopment Commission Regular Meeting —April 10, 2012 the conflict is required to pay relocation and where no easement exists, AEP covers the expense. Much conversation has occurred with AEP concerning the expediting of this work and relocation. With the approval of this agreement and the commitment of funding of $108,337 AEP will begin the work so that they can be out of the way and completed by the time the project is under construction later this summer. Staff requests approval of the Relocation Agreement with American Electric Power. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVEDTHE RELOCATION Mr. Davis and unanimously carried, the AGREEMENT WITH AMERICAN ELECTRIC POWER Commission approved the Relocation FOR THE MAIN - LAFAYETTE CONNECTOR PROJECT. Agreement with American Electric Power for the Main - Lafayette Connector Project. F. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. G. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. H. Other (1) Filing of Resolution No. 3017 setting a public hearing on the appropriation of Certified Technology Park Revenues for the payment of certain obligations and expenses related to their respective allocation areas and other related matters with the public hearing to be held at 4:00 p.m., May 8, 2012. THERE WAS NO BUSINESS IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. THERE WAS NO BUSINESS IN THE DOUGLAS ROAD ECONOMIC DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting —April 10, 2012 Ms. Leonard -Inks noted that this sets the public hearing for May 8, 2012 at 4:00 p.m. An explanation will be given at that time. Upon a motion by Mr. Downes, seconded by Mr. Davis and unanimously carried, the Commission accepted the filing of Resolution No. 3017 and set a public hearing on the appropriation of Certified Technology Park Revenues for the payment of certain obligations and expenses related to their respective allocation areas and other related matters with the public hearing to be held at 4:00 p.m., May 8, 2012. 7. PROGRESS REPORTS COMMISSION ACCEPTED THE FILING OF RESOLUTION NO. 3017 AND SET A PUBLIC HEARING ON THE APPROPRIATION OF CERTIFIED TECHNOLOGY PARK REVENUES FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THEIR RESPECTIVE ALLOCATION AREAS AND OTHER RELATED MATTERS WITH THE PUBLIC HEARING TO BE HELD AT 4:00 P.M., MAY 8, 2012. Mr. Davis noted that Mr. Jack Smith complained to him PROGRESS REPORTS about the unsightly storage of trucks at Herrman & Goetz. They are behind a fence, but you can see through the fence. He wondered if we should alert Code Enforcement take a look at it. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Tuesday, April 24, 2012 at 4:00 p.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, the meeting was adjourned at 5:55 p.m. Donald E. Inks, Director 30 Marcia I. Jones, President