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HomeMy WebLinkAbout2 MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING April 24, 2012 4:00 p.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Ms. Marcia Jones, President Dr. David Varner, Vice President Mr. Donald Alford, Secretary Mr. Greg Downes Mr. Henry Davis Ms. Stephanie Spivey Ms. Andrea Beachkofsky Redevelopment Staff. Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. David Relos, Economic Development Specialist Mr. Jitin Kain, Senior CED Specialist Ms. Debrah Jennings, Property Manager Others Present: Ms. Beth Leonard Inks, Community & Econ Dev Ms. Patti Lesniewicz, Economic Development Ms. Kathy Hahn, Economic Development Mr. Shawn Strohman Mr. Marco Mariani, South Bend Heritage Foundation Mr. Pat Lynch, South Bend Heritage Foundation Mr. Dan Smogor Ms. Mo Miller Mr. Mike Morris, Owner, R2 Diagnostics, Inc. Mr. Jeff McGowan, CPA 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Tuesday, April 10, 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, APRIL 10, approved the Minutes of the Regular Meeting of 2012. Tuesday, April 10, 2012. South Bend Redevelopment Commission Regular Meeting —April 24, 2012 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted April 24, 2012 for approval. 305 FUND SBCDA BOND Architecture Design Group 1,000.00 Island Park Pavilion 324 AIRPORT AREA BSA Life Structures 14,663.22 Ignition Pk Energy feasibility Study BSA Life Structures 11,501.00 Ignition Pk -Data Realty Facade Improv. Blue Waters Group 7,500.00 Consulting Agreement Hull & Associates, Inc. 632.50 General Consulting Services /Oliver Area Ken Herceg 4,360.00 Sheridan Ave & Lincoln Way West Design Weaver Boos Consultants 324.01 Studebaker area A Demolition — Phase W Indiana Dept of Environmental MGMT 1,721.50 Generator Fee/Late Fee Wightman Petrie 6,537.50 Ivy Tower Wightman Petrie 9,030.00 Former EMI Building Demo Plans Plews Shadley Racher & Braun LLP 12,863.50 Bosch /Honeywell 1,006.90 Studebaker / Oliver Plow Works / Cost Plews Shadley Racher & Braun LLP Recovery DLZ 2,793.22 So. Bend Olive Rd/Pine Rd Grinsfelder Associates Architects 4,341.96 New Facility for the Animal Shelter DLZ 9,600.00 So. Bend On- Site - Bidpck B Meridian Title Corporation 100.00 Abstract or Title Search 1502 Kendall Hull & Associates, Inc. 2,700.00 Studebaker Area A Seige Construction Co, Inc. 234,140.37 Ignition Park Ph I L.L. Gean Construction Co. 51,341.58 Voorde Pk Improvements 420 FUND TIF DISTRICT - SBCDA GENERAL Buxton Identifying Customers 3,500.00 Retail Matching Access /Basic Access Wightman Petrie 4,800.00 Former Gates /Chevrolet & Toyota Ampco System Parking 2,230.39 225 Main St / St. Joseph St. Schindler Elevator Corp 164.37 LaSalle Hotel Elevator 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT The Troyer Group 17,990.13 South Bend Tribune 62.52 Tri County News 55.65 ARC 63.33 N Facade Studies Skyway B Warner, Bank & Main — Ph II Notice To Bidder Notice To Bidder Memorial Streetscapes BP 3A South Bend Redevelopment Commission Regular Meeting —April 24, 2012 3. APPROVAL OF CLAIMS (CONT.) 430 FUND SOUTH SIDE DEVELOPMENT TIT AREA #1 Main St/Lafayette Blvd Connector Ireland - David L. Bolinger 1,095.00 Chippewa Lawson- Fisher Associates P.C. 206,402.53 S Main St to Lafayette Blvd $ 406,118.65 Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved the Claims submitted April 24, 2012, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS A. South Bend Central Development Area (1) Agreement for Sale of Land for Private Development (502 W. Western Ave., former Harmon Glass). Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission tabled Item 5.A. (1) B. West Washington- Chapin Development Area (1) Resolution No. 3016 accepting the transfer of real property from South Bend Heritage Foundation, Inc. Mr. Relos noted that on November 22, 2011, the Commission and South Bend Heritage, Inc. (SBHF) entered into a Memorandum of Understanding (MOU), for the substantial renovation of the Hansel Center, located at 1045 W. Washington St. 3 COMMISSION APPROVED THE CLAIMS SUBMITTED APRIL 24, 2012, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS COMMISSION TABLED ITEM 5.A.(I) South Bend Redevelopment Commission Regular Meeting —April 24, 2012 5. OLD BUSINESS (CONT.) B. West Washington - Chapin Development Area (1) continued... 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. This past Tuesday, April 3, 2012, the Board of Public Works awarded the Hansel Center renovation contract to Gibson Lewis, and we are now at the point in the process where transfer of the property will soon be needed. Mr. Relos noted that the window sashes at Hansel Center were removed during the lead based paint remediation. They were not reinstalled because it seemed better to do that after the work the Commission was going to do. The contractor has promised to install them at a later time. Marco Mariani of South Bend Heritage has written a letter to that effect. Upon approval of this resolution, a quit claim deed will be prepared to transfer Hansel Center from SBHF to the Commission. 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 to accept of this property from SBHF and to fulfill its obligations under the MOU. Ms. Beachkofsky said that she believed the terms of transfer were still under legal 4 South Bend Redevelopment Commission Regular Meeting —April 24, 2012 5. OLD BUSINESS (CONT.) B. West Washington - Chapin Development Area (1) continued... review. Mr. Inks responded that Aladean DeRose and Mr. Nussbaum were discussing the terms, but Ms. DeRose is now satisfied with terms of the transfer and authorized its being put back on the agenda. Ms. Beachkofsky asked Mr. Relos to read the letter from Mr. Mariani into the record. (Regarding South Bend Heritage Foundation (SBHF) — Hansel Center Environmental Remediation. (CDBG Contract #CD -09- 8148)) To Whom It May Concern: This letter is to confirm that Bill Ricker Remodeling (SBHF Contractor per aforementioned contract) has properly removed the window brick mold trim and window sashes per the specified lead abatement process. Moreover, it is the understanding of SBHF that the on -site remediation /removal activity is complete. As specified, the remediated window materials will be reinstalled by Bill Ricker Remodeling upon notification from the City of South Bend and Gibson - Lewis, Inc. that "Part A " of the project is complete. SBHF also understands that it remains fully liable for completion of the aforementioned remediation activity and for any claims arising from its workmanship. If you have any questions or require additional information, please contact me. Thank you. 5 South Bend Redevelopment Commission Regular Meeting —April 24, 2012 5. OLD BUSINESS (CONT.) B. West Washington - Chapin Development Area (1) continued... Sincerely, Marco Mariani Executive Director Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 3016 accepting the transfer of real property from South Bend Heritage Foundation, Inc. Mr. Relos thanked the Commission and noted that it's great to see an old historic building repurposed in the West - Washington Neighborhood. Ms. Jones and Mr. Varner asked for timeline clarifications. Mr. Inks responded that the City has already bid the work. Mr. Shawn Strohman of Varner Construction Management Company, Sacramento, California, noted the City is issuing the notice to proceed to Gibson Lewis April 25, 2012. Construction will begin on Monday, April 30, 2012. Mr. Strohman will retrieve information from the contractor's master schedule and relay the information to Mr. Relos. His guess is this portion of the work will run through late summer. At that time, the ownership will be transferred back to the Commission, with final project completion anticipated as late November. Mr. Varner questioned why Varner Construction out of California was hired as contractor. Mr. Relos responded that Varner was a major donor to the project. 6 COMMISSION APPROVED RESOLUTION NO. 3016 ACCEPTING THE TRANSFER OF REAL PROPERTY FROM SOUTH BEND HERITAGE FOUNDATION, INC. South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS A. Tax Abatements (1) Resolution No. 3031 approving an application for personal property tax deduction for property located at 1801 Commerce Drive in the Airport Economic Development Area (R2 Diagnostics, Inc.). Ms. Hahn noted that R2 Diagnostics, Inc., (R2D) manufacturers and sells clot based diagnostic kits that test for bleeding and clotting disorders. R21) uses proteins from Enzyme Research Laboratories (ERL) to insure the highest quality final products with no lot -to -lot variation. ERL is the primary supplier of coagulation and fibrinolytic proteins for the research community. The company's products are distributed worldwide to researchers and pharmaceutical companies to aid in the development of novel therapeutic compounds and assays to diagnose and treat coagulation/hemostatis disorders. R21) intends to purchase equipment in the amount of $459,500 to complement current equipment in order to support client demands and higher volume. Two of the property's tax key numbers are in Portage Township and two are in German Township. Using tax rates for Portage Township results in $18,317 of taxes being abated and using tax rates for German Township results in $18,421 of taxes to be abated. Total taxes to be paid using Portage Township tax rates during a five -year abatement period are estimated at $28,964. Per the petition, it is estimated that the total 7 South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) A. Tax Abatement (1) continued... project will create at least two new permanent full -time jobs in the first year of production representing a new annual payroll of at least $65,000. The project will maintain fifteen existing permanent full -time jobs and one part-time job with a total annual payroll of $800,000. Ms. Hahn introduced Mr. Jeff McGowan, CPA, R2 Diagnostics, Inc. for any questions the Commission may have. Mr. McGowan noted the company has been a good taxpayer throughout the last five years, paying approximately $205,000 in real property taxes. Enzyme Research Laboratories has paid about $44,000 in personal property tax and R2 has paid about $3,500. Once the tax abatement is complete, they estimate that the $460,000 equipment that they're going to put into service, the abatement would roughly add about $5,000 to the tax roles on an annual basis. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3031 approving an application for personal property tax deduction for property located at 1801 Commerce Drive in the Airport Economic Development Area (R2 Diagnostics, Inc.). COMMISSION APPROVED RESOLUTION NO. 3031 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1801 COMMERCE DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (R2 DIAGNOSTICS, INC.). South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) Ratify Certificate of Completion for East Bank South Bend Development, LLC (East Bank Townhomes). Mr. Relos noted that the original site plan presented with the Contract for Sale of Land, showed town homes which have now been constructed. There is room to build two more on the southern end. Mr. Matthews was unsure whether those should be town homes or perhaps a commercial development so Phase I of the project that was approved was the six town homes. Mr. Matthew has met the requirements of the Contract for Sale and the Certification of Completion was justified. Mr. Inks signed the Certificate of Completion so Mr. Matthews could secure permanent financing for the project. It now requires Commission ratification. Ms. Jones asked if the town homes were all occupied. Mr. Relos said that they were all sold. He believes one has yet to be occupied. Mr. Downes encouraged Commissioners who had not done so to take a tour of the project; it's an incredible project. Mr. Varner noted there was significantly more investment than what was originally estimated so the property taxes will be more than originally estimated. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission ratified the Certificate of Completion for East Bank South Bend Development, LLC (East Bank Townhomes). 0 COMMISSION RATIFIED THE CERTIFICATE OF COMPLETION FOR EAST BANK SOUTH BEND DEVELOPMENT, LLC (EAST BANK TOWNHOMES). South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) Staff report on disposition of 609 E. Columbia. Mr. Relos noted that on June 28, 2011, the Commission approved bid specifications and fair - market valuation for five homes in the Monroe Park neighborhood and authorized publication of the Notice of Intended Sale of Property. This property's fair market valuation, based on the average of two disposition appraisals, was $15,500. On July 26, 2011, staff reported that no bids had been received on any of the properties. Therefore, after a waiting period of 30 days, they could be sold at a negotiated price. On September 27, 2011, the Commission approved a contract with Bruce Gordon to list and market four of the five properties. On November 22, 2011, the Commission rejected a $5,000 offer on this property, and instead approved a counter offer in the amount of $10,000. This price was accepted by the interested party, and a purchase agreement submitted. The interested party, who lives in the neighborhood and had purchased two other properties, let the purchase agreement expire with no further action. Recently, another party submitted an offer. This person would live in the house. The Commission prefers the sale be made to an owner- occupant. The offer was made in the amount of $5,000. With guidance from Mr. Gordon, staff recommends that the Commission counter with a price of $8,000 10 South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... and set this value as the lowest price it would accept for this property. Ms. Beachkofsky noted that legal would like to review the offer before it is made. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission authorized a counter offer be made in the amount of $8,000 for 609 E. Columbia subject to legal review. C. Airport Economic Development Area (1) Fagade Easement Agreement with Data Realty. Mr. Kain noted first updated the Commission on the construction of infrastructure at Ignition Park. Construction is in full swing with 30 -40% of the overall project complete. The streets have been graded, utilities are in and Phase IA should be done by July. Mr. Kain noted that in July 2011, the Commission approved the sale of Lot 4 at Ignition Park to Data Realty Northern Indiana LLC which is currently building an approximately 50,000 sq. ft. data center. Data Centers are typically built as bunkers; however, Ignition Park is designed as a high tech, high aesthetic park. There was a desire to see the first building designed and built to architectural standards established for the 11 COMMISSION AUTHORIZED A COUNTER OFFER BE MADE IN THE AMOUNT OF $8,000 FOR 609 E. COLUMBIA SUBJECT TO LEGAL REVIEW. South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... park. As part of the Contract for Sale of Land, the Commission agreed to provide site improvements (paving, landscaping, lighting, etc.) to the Data Realty site equal to the amount of the fagade enhancement work performed by Data Realty up to an amount of $1,400,000. The fagade design was done by BSA LifeStructures, the firm responsible for the Master Plan of Ignition Park. The initial estimates for the first design came in over budget, so BSA was asked to revise the facade design. Earlier this year, a design was submitted that was estimated to cost $1,134,980. This design was later approved by the Architectural Review Committee for Ignition Park. A recent estimate of site improvement work at Data Realty was $400,000 which is significantly less than the $1,134,980 estimated for the fagade work. Therefore, in lieu of the site improvements, staff is proposing the following combination to fulfill the Commission's commitment towards the Data Realty project: 1. Fagade Improvements: Purchase metal panels and screen wall coverings for the approved fagade design in the amount of $747,576. In order to do this, Data Realty would grant the Commission a fagade easement for a term of seven years. 2. 12 South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... 3. Equipment Purchase: Purchase Computer Room Air Handler (CRAH) units for the data center portion of the building in the amount of $387,404. In return, the Commission would get an additional five years worth of equipment rack space at Data Realty. (Currently, the Commission has the use of five racks for 15 years, the value of which is estimated at $1,080,000.) The total of the two items is $1,134,980 which is equal to the total estimate of the fagade work and is under the budgeted amount of $1,400,000 for this project. Staff requests Commission approval of the Fagade Easement and Amendment to the Use, Management and Operations agreement. Mr. Varner asked why Data Realty would grant the Commission a fagade easement for seven years. Mr. Kain responded that it was felt that seven years was a reasonable time for the City to own the equipment. There are design guidelines in place that would require Data Realty to maintain the panels and to keep the aesthetics of the park to certain standards. Even if we do not own the fagade after seven years, we will still control the way the building looked.; Mr. Varner asked if the City would control the facades of everyone in the park. Mr. 13 South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... Kain said he did not believe it would. Mr. Varner asked what the value of a rack is. Mr. Inks responded that there is no value unless they're in use. Mr. Downes asked if it was the plan to use the racks. Mr. Inks responded that the plan is to look for opportunities to use them. Staff checked with the City's IT Department and is not aware of any great opportunity right now, but perhaps in the future. In speaking with other businesses, staff thinks it may be able to use them as part of our business development activities. Mr. Downes asked whether the Architectural Review Committee, would have to approve all design. Mr. Kain responded that it would, because of the PUD that is in place.. Mr. Davis asked who won the bid for construction of the Data Realty project. Mr. Kain responded that Data Realty bid out its own project and that Turner Construction is the general contractor. Mr. Davis asked if MBE and WBE were part of the consideration. Mr. Inks responded that staff did not put those in as requirements in the agreements but we did have those conversations. Turner was selected for this project because of its work on the Kroc Center and the success they had with the MBE and the WBE's there. 14 South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... Mr. Inks asked Mr. Kain to speak about TIF eligibility as Mr. Metreiver requested. Mr. Kain noted that there were some questions raised about the use of TIF dollars inside a private property, especially as it relates to purchase of equipment inside the building; air - handling units that support the data center. Staff confirmed with Mr. Randy Rompola of Faegre Baker & Daniels that this is aneligible use of TIF money and that the purchase of the equipment was allowable under the statute. Mr. Inks noted there were some revisions to the Use Agreement as a result of Mr. Rompola's review. Mr. Kain noted that there is a revised Use Agreement. The main change is the ability for Data Realty to purchase the equipment back from the City in seven years. That was not included in the version the Commissioners received in their packet. Mr. Davis asked for a list' of the requirements used in determining whether and how much TIF participation will be used in a project. Mr. Inks responded that state statute stipulates what TIF funds can be used for. He will provide Mr. Davis with the statute. In practice, we look for creative ways to use the funds within the statute. Legal counsel helps us determine whether proposed uses fall within the statute. The amount of TIF participation for a project is based on the 15 South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... community benefit of the project. Those are general guidelines, but they are under review by the new administration. Upon a motion by Mr. Downes, seconded by Mr. Davis and unanimously carried, the Commission approved the Fagade Easement Agreement with Data Realty subject to legal review. (2) First Amendment to the Use, Management, and Operations Agreement dated November 17, 2011 with Data Realty Northern Indiana, LLC. Upon a motion by Mr. Downes, seconded by Mr. Davis and unanimously carried, the Commission approved the First Amendment to the Use, Management, and Operations Agreement dated November 17, 2011 with Data Realty Northern Indiana, LLC, subject to legal review. (3) Resolution No. 3022 related to acquisition of property in the Airport Economic Development Area. (1504 S. Kemble) Mr. Relosthat 1504 was added to the Airport Economic Development Area's Acquisition List by Resolution No. 2668 on May 21, 2010. It is a two story, two bedroom, 1,174 square foot single family residence. Resolution No. 3022 sets the acquisition value of the property at $18,500, the average of two independent appraisals. Staff requests approval of Resolution No. 3022. 16 COMMISSION APPROVED THE FACADE EASEMENT AGREEMENT WITH DATA REALTY SUBJECT TO LEGAL REVIEW. COMMISSION APPROVED THE FIRST AMENDMENT TO THE USE, MANAGEMENT, AND OPERATIONS AGREEMENT DATED NOVEMBER 17, 2011 WITH DATA REALTY NORTHERN INDIANA, LLC, SUBJECT TO LEGAL REVIEW. South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued... Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3022 related to acquisition of property in the Airport Economic Development Area. (1504 S. Kemble) (4) Resolution No. 3027 related to acquisition of property in the Airport Economic Development Area. (721 W. Indiana) Mr. Relos noted that 721 W. Indiana was added to the Airport Economic Development Area's Acquisition List by Resolution No. 2668 on May 21, 2010. It is a large commercially zoned double lot at the northeast corner of Kendall and Indiana. Resolution No. 3027 sets the acquisition value of the property at $15,750, the average of two independent appraisals. Staff requests approval of Resolution No. 3027. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3027 related to acquisition of property in the Airport Economic Development Area. (721 W. Indiana) (5) Resolution No. 3028 related to acquisition of property in the Airport Economic Development Area. (913 -915 W. Indiana) Mr. Relos noted that 913 -915 W. Indiana. was added to the Airport Economic Development Area's Acquisition List by 17 COMMISSION APPROVED RESOLUTION NO. 3022 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (1504 S. KEMBLE) COMMISSION APPROVED RESOLUTION NO. 3027 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (721 W. INDIANA) South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (5) continued... Resolution No. 2668 on May 21, 2010. The property is a 3,820 square foot, one story office /warehouse building. Resolution No. 3028 sets the acquisition value of the property at $21,000, the average of two independent appraisals. Staff requests approval of Resolution No. 3028. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3028 related to acquisition of property in the Airport Economic Development Area. (913- 915 W. Indiana) (6) Resolution No. 3029 related to acquisition of property in the Airport Economic Development Area. (1522 Prairie Ave.) Mr. Relos noted that 1522 Prairie was added to the Airport Economic Development Area's Acquisition List by Resolution No. 2668 on May 21, 2010. The is a 3,200 square foot, one story warehouse building. Resolution No. 3029 sets the acquisition value of the property at $28,500, the average of two independent appraisals. Staff requests approval of Resolution No. 3029 Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3029 related to acquisition of property in the Airport Economic Development Area. (1522 Prairie Ave.) 18 COMMISSION APPROVED RESOLUTION NO. 3028 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (913 -915 W. INDIANA) COMMISSION APPROVED RESOLUTION NO. 3029 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (1522 PRAIRIE AVE.) South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (7) Resolution No. 3030 approving and authorizing the execution of an amendment to the Addendum to the Master Agency Agreement (Ignition Park Phase 1A Infrastructure — Supplement #1). Mr. Kain noted that on October 22, 2011, the Commission signed an Addendum to the Master Agency Agreement authorizing the Board of Public Works to act as its agent and assist with the engineering work for Ignition Park Phase IA Infrastructure. The engineering staff authorized BSA LifeStructures to subcontract with ATC Associates to provide geotechnical services for Ignition Park. The geotechnical work includes testing soil in Ignition Park to understand the strength, compressibility and other engineering characteristics of the subsurface material. This is key information required in planning any infrastructure project. This work was completed towards the end of 2011 to assist with the infrastructure planning at Ignition Park. The proposal from ATC Associates is for $9,750 and is in addition to the reimbursable allowance approved for BSA LifeStructures. Resolution No. 3030 requests an amendment to the Addendum to the Master Agency Agreement to add $9750 to the contract with BSA LifeStructures for the cost of ATCs services. 19 South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (7) continued... Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 3030 approving and authorizing the execution of an amendment to the Addendum to the Master Agency Agreement (Ignition Park Phase 1 A Infrastructure — Supplement # 1). (8) Resolution No. 3024 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Olive Road Right -of -Way Acquisition — Supplement #1). Mr. Relos noted that for the last several years, the City of South Bend has been working with DLZ on design and plans for the remaining section of Olive Road improvements between Lincolnway West/US 20 and Nimtz Parkway. The roadway plans are about 95% complete and staff is finalizing the acquisition of the necessary right -of -way for this section of improved roadway. This Supplement #I specifically deals with professional service work necessary to the design and bidding of site improvements on the Olive Road Basin, which is part of the roadway construction project related to the future Olive Road improvements. The City is preparing to bid and construct improvements to the pond as the work is part of the acquisition agreement reached between the City's Board of Public Works and the 20 COMMISSION APPROVED RESOLUTION NO. 3030 APPROVING AND AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT (IGNITION PARK PHASE I A INFRASTRUCTURE - SUPPLEMENT # 1). South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (8) continued... Michiana Lutheran Education Association (MLEA) for the acquisition of right -of -way property at the southeast corner of Nimtz and Olive. The improvements contemplated need to be done during the summer session so as not to disrupt the education activities during the school year. Supplement #1 deals only with the design and bidding work necessary for this project; Supplement #2 will set up a budget for the construction work. Staff recommends approval of Resolution No. 3024. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 3024 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Olive Road Right -of -Way Acquisition — Supplement # 1). (9) Resolution No. 3025 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Olive Road Right -of -Way Acquisition — Supplement #2). Mr. Relos noted that Supplement #2 sets up a budget for the construction work to be done on site. The engineer's stimate for the scope of work is $109,975. The goal is to have the project go to bid in May with all work be completed on school property before the start of the fall term. Staff requests approval of Resolution No. 3025 with a not -to- exceed amount $125,000. 21 COMMISSION APPROVED RESOLUTION NO. 3024 APPROVING AND AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT (OLIVE ROAD RIGHT -OF -WAY ACQUISITION - SUPPLEMENT #1). South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (9) continued... Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 3025 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement in an amount not to exceed $125,000 (Olive Road Right -of- Way Acquisition — Supplement #2). (10) Resolution No. 3026 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Olive Road Right -of -Way Acquisition — Supplement #3). Mr. Relos noted that in 2007, the Board of Public Works entered into a contract with DLZ to prepare Design and Right of Way Engineering for improvements to Olive Road from Lincolnway West to Nimtz (Phase 1) and from Edison to Lincolnway West (Phase 2). The budget for the design of Phase 1 was $502,900 and the budget for the design of Phase 2 was $303,750. Due to changes in work scope, the work on Phase 2 was started but eventually held for a future point and the funds that were approved for use were reprogrammed within the project to be used for Right -of -Way acquisition services for the roadway. The purpose of Supplement #3 is to add $35,000 to the project budget to complete some design and right of way engineering for the section of roadway that connects Olive 22 COMMISSION APPROVED RESOLUTION No. 3025 APPROVING AND AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT IN AN AMOUNT NOT TO EXCEED $125,000 (OLIVE ROAD RIGHT - OF -WAY ACQUISITION - SUPPLEMENT #2). South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (10) continued... Road to Pine Road at the intersection with Lincolnway West. The St. Joseph County Airport Authority is underway with acquisition of a tract of land that would allow, with the City's purchase of one parcel, to construct the connector roadway necessary to link this roadway network. With this work complete, a continuous roadway corridor can be developed from Adams Road to Western Avenue /SR 2. These additional funds will help finalize plans through the future airport property and complete some intersection redesign at Lincolnway West. Staff requests approval of Resolution No. 3026. Mr. Davis asked whether the homeowners on Olive Road were supportive or opposed. Mr. Relos responded that most of the right - of -way has already been acquired. Mr. Davis inquired about the additional traffic to come down Olive. Mr. Relos responded that connector only effects the east side of Olive Road. Mr. Davis expressed his concern for the change in traffic patterns directing traffic away from current businesses. Mr. Relos said he thought anyone wanting to go north now uses the bypass to do so. The connector would provide another option for going north, but would not likely lure customers away from Western Avenue businesses. 23 South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (10) continued... Mr. Downes made a motion to approve Resolution No. 3026. Mr. Alford seconded the motion. The motion passed on a vote of four to one with Mr. Davis opposed. D. West Washington - Chapin Development Area There was no business in the West Washington - Chapin Development Area. E. South Side Development Area (1) Resolution No. 3023 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Main - Lafayette Connector Design Project — Supplement 05). Mr. Relos noted that the purpose of this supplement is to add funding to cover the construction cost for the Main - Lafayette connector. After nearly nine years of planning and design, the project will go out to bid with a bid opening date of May 22, 2012. The engineer's estimate is $4.5 million (not $4.3 as the resolution states) for the entire project but several alternate bid items have been created to help give flexibility when reviewing the bids and making an award. This project will require all available South Side TIF funds from budget year 2012 to pay for the project, but this is an important tool for that area and will open up a lot of development areas after the road is redesigned. 24 COMMISSION APPROVED RESOLUTION NO. 3026 APPROVING AND AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT (OLIVE ROAD RIGHT -OF -WAY ACQUISITION - SUPPLEMENT #3). THERE WAS NO BUSINESS IN THE WEST WASH INGTON-CHAPIN DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) E. South Side Development Area (1) continued... Staff requests approval of Resolution No. 3023 and the Addendum To Master Agency Agreement for the Main - Lafayette Corridor Project, Supplement #5. Mr. Varner asked if this included any of the Chippewa St. work. Mr. Relos said no. Mr. Varner asked when that would would be done. Mr. Inks responded that the City was hoping to do more of that this year - - -at least the right -of -way and design work. Mr. Schalliol would still like to do some construction this year, but as Mr. Relos mentioned, this project uses all the South Side TIF funds for the year and that's consistent with the strategy. Main and Lafayette Streets were to be completed first and then the Chippewa work was to follow. Mr. Relos noted that the Street Department is going to be doing some water main work on Barbie Street, east of Michigan Street. One of the alternatives is to do some upgrade, tear up the water main and patch the street. So if the bids come in low enough, and the City can do some curbing /guttering and resurface the whole street, it will. There were questions about whether all the ramifications from the changes to U.S. 31 have been considered. Mr. Relos said that was INDOT's plan. It has been changed from the original plan. Mr. Davis wondered it there is an INDOT plan that the City doesn't know anything 25 South Bend Redevelopment Commission Regular Meeting —April 24, 2012 6. NEW BUSINESS (CONT.) E. South Side Development Area (1) continued... about. He would like to know what INDOT is planning. Staff suggested he refer to the INDOT web site or contact Gary Gilot. Mr. Relos also offered to get the plan for Commissioners. Mr. Varner made a motion to approve Resolution No. 3023. Mr. Downes seconded. The motion passed on a vote of four to one. Mr. Davis was opposed. 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. Ratification of Services Contracts Upon a motion by Mr. Downes, seconded by Mr. Davis and unanimously carried, the Commission ratified the contract with Meridian Title Corp for title work on 1502 Kendall. I. Ratification of Temporary Use Agreements Upon a motion by Mr. Downes, seconded by Mr. Davis and unanimously carried, the Commission ratified the temporary use agreement with Monroe Circle Community Center to use the lot at 318 S. Taylor St and 501 W. Washington on April 21, 2012 for Comcast Care and MC3 Employees and Community Service Event. 26 COMMISSION APPROVED RESOLUTION NO. 3023 APPROVING AND AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT (MAIN - LAFAYETTE CONNECTOR DESIGN PROJECT - SUPPLEMENT #5). THERE WAS NO BUSINESS IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. THERE WAS NO BUSINESS IN THE DOUGLAS ROAD ECONOMIC DEVELOPMENT AREA. COMMISSION RATIFIED THE CONTRACT WITH MERIDIAN TITLE CORP FOR TITLE WORK ON 1502 KENDALL COMMISSION RATIFIED THE TEMPORARY USE AGREEMENTS. South Bend Redevelopment Commission Regular Meeting —April 24, 2012 7. PROGRESS REPORTS A. Tax Abatement Mr. Inks noted that Mr. Davis' Community and Economic Development Committee of the Common Council communicated to the Redevelopment Commission that they will, as the local tax abatement requires, review the tax abatement ordinance this year. B. Other Mr. Inks noted that he is making a presentation to the Common Council on TIF at 4:30, April 25, 2012. Commissioners have been invited, so we have posted notice for a special meeting of the Commission in case there are three Commissioners who attend that presentation. It is a public meeting, so anyone is welcome to attend. Mr. Inks also noted that the Commission previously approved an agreement with the LPGA. There have been some changes made to it, and it is still under legal review. The most significant change is that the amount of insurance the city is being required to obtain is $3 million instead of $2 million. Since the City is self insured, the additional cost should not be much. Ms. Beachkofsky authorized the Commission to approve the revised agreement, subject to legal review. Upon a motion by Mr. Varner, seconded by Mr. Alford and unanimously carried, the Commission approved the LPGA Agreement subject to legal review. 27 COMMISSION APPROVED THE LPGA AGREEMENT SUBJECT TO LEGAL REVIEW. South Bend Redevelopment Commission Regular Meeting —April 24, 2012 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is scheduled for Tuesday, May 8, 2012 at 4:00 p.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Varner made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 5:08 p.m. Donald E. Inks, Director r: NEXT COMMISSION MEETING ADJOURNMENT Marcia I. Jones, President