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HomeMy WebLinkAbout04-24-12 Redevelopment Commission Minutes SOUTH 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: Ms. Marcia Jones, President Dr. David Varner, Vice President Mr. Donald Alford, Secretary Mr. Greg Downes Mr. Henry Davis Members Absent: Ms. Stephanie Spivey Legal Counsel: 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 & Economic Development Ms. Patti Lesniewicz, Economic Development Ms. Kathy Hahn, Economic Development Mr. Shawn Strohman Mr. Marco Mariani Mr. Pat Lynch Mr. Dan Smogor Ms. Mo Miller Mr. Mike Morris, Owner, R2 Diagnostics, Inc. Mr. Jeff McGowan, 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. Upon a motion by Mr. Downes, seconded by Mr. Alford COMMISSION APPROVED THE CLAIMS and unanimously carried, the Commission approved the SUBMITTED APRIL 24,2012,AND ORDERED THE Claims submitted April 24, 2012, and ordered checks to CHECKS TO BE RELEASED be released. 4. COMMUNICATIONS There were no 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 COMMISSION TABLED THE AGREEMENT FOR Mr. Downes and unanimously carried, the SALE OF LAND FOR PRIVATE DEVELOPMENT Commission tabled the Agreement for Sale (502 W.WESTERN AVE.(FORMER HARMON of Land for Private Development (502 W. GLASS). Western Ave. (former Harmon Glass). 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. 2 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 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 3rd, 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 this resolution, 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. At the last Redevelopment Commission meeting, the resolution was presented subject to legal review. That review is now complete. The property was going through a period of lead paint remediation. The on-site remediation is now complete and the property is being transferred to the Commission in a remediated state. The remediated window trim, subject to the remediation, will be reinstalled after the property is transferred back to South Bend Heritage to allow seamless construction lines that includes the installation of new windows. There's also some brick tuck- pointing work that will occur around the windows. It made sense that once the window trim was removed to wait until the new windows got reinstalled and the tuck- pointing got done, thereby not possibly injuring the window trim that was subject to remediation getting repainted and put back up. 3 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 Staff requests approval of Resolution No. 3016 to allow the acceptance of this property from SBHF and to fulfill its obligations under the MOU. Ms. Beachkofsky noted that this was still under legal review. Mr. Inks noted that Aladeen and Mr. Nussbaum were going back and forth and Aladeen is satisfied with this being put back on the record. Ms. Beachkofsky asked Mr. Relos to read the following letter for the record. (Regarding South Bend Heritage Foundation (SBHF) — Hansel Center Environmental Remediation. (CDBG Contract#CD-09-8148)) Mr. Relos read: 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. 4 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 If you have any questions or require additional information, please contact me. Thank you. Sincerely, Marco Mariani Executive Director Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.3016 Mr. Alford and unanimously carried, the ACCEPTING THE TRANSFER OF REAL PROPERTY Commission approved Resolution No. 3016 FROM SOUTH BEND HERITAGE FOUNDATION, INC. 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 on the West-Washington Neighborhood. Ms. Jones and Mr. Varner asked for timeline clarifications. Mr. Inks noted today it is being transferred to the Redevelopment Commission. The City has already bid the work and that work will be completed. Then the property will be transferred back to SBHF, where the balance of the work will be done. Mr. Shawn Strohman, of Varner Construction Management Company, Sacramento, California, noted the City is issuing notice to proceed to Gibson Lewis tomorrow, 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, with final project completion anticipated as late November. 5 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 Mr. Varner asked for clarification as to Varner's involvement. Mr. Relos noted that Varner was a major donor to the project. 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., which she'll refer to as R2D, manufacturers and sells clot based diagnostic kits that test for bleeding and clotting disorders. R213 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. R213 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 tax key numbers are in Portage Township and two of the tax key numbers are in German Township. Using tax rates for Portage Township results in $18,317 of tax being abated and using tax rates for German Township results in $18,421 of tax abated. Total taxes to be paid using Portage 6 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 Township tax rates during a five-year abatement period are estimated at $28,964. Per the petition, it is estimated that the total 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 that there are 15 employees versus the 50 Ms. Hahn mentioned. Ms. Hahn misspoke. Also, he mentioned that the company has been a good tax-payer throughout the last five years and they've paid 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. He offered a copy of what the specific equipment is and also introduced Mr. Mike Morris, owner, R2 Diagnostics to discuss his business. Mr. Varner recalled when ERL was on Lafayette Street then moved to Commerce Drive. Is R2 a separate business entirely? Mr. Morris noted that it is a separate company. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.3031 APPROVING AN APPLICATION FOR PERSONAL 7 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 Mr. Varner and unanimously carried, the PROPERTY TAX DEDUCTION FOR PROPERTY Commission approved Resolution No. 3031 LOCATED AT 1801 COMMERCE DRIVE IN THE approving an application for personal AIRPORT ECONOMIC DEVELOPMENT AREA(R2 property tax deduction for property located at DIAGNOSTICS,INC. . 1801 Commerce Drive in the Airport Economic Development Area (R2 Diagnostics, Inc.). 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 presented with the contract for sale, showed the six town homes have now been constructed. There is room to do two more on the southern end. Mr. Matthews was sure those should be town homes or perhaps a commercial development so the actual Phase I of the project that was approved was the six town homes. Mr. Matthew has met the requirements. Ms. Jones asked if the town homes were all occupied. Mr. Relos said that they were all sold. Mr. Downes noted and encouraged a tour; 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 COMMISSION RATIFIED THE CERTIFICATE OF Mr. Alford and unanimously carried, the COMPLETION FOR EAST BANK SOUTH BEND Commission ratified the Certificate of DEVELOPMENT,LLC(EAST BANK Completion for East Bank South Bend TOWNHOMES). Development, LLC (East Bank Townhomes). (2) Staff report on disposition of 609 E. Columbia. 8 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 Mr. Relos noted the request to proceed regarding the proposed sale of 609 E. Columbia, in the Monroe Park Neighborhood. On June 28, 2011, the Commission approved bid specs, fair-market valuation, and advertising of legal notices to begin the disposition process for five properties in the Monroe Park neighborhood. This property's fair market valuation, based on the average of two disposition appraisals, is $15,500. On July 26, 2011, staff reported that no bids had been received on any of the properties, and they would then be able to 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 purchased two other properties, has let the purchase agreement expire with no further action. Recently, another party has submitted an offer. This person would live in the house, which is the goal of the Commission for these houses to encourage owner occupants. The offer was for $5,000. With guidance from Mr. Gordon, staff recommends that the Commission counter with a price of$8,000 and set this value as the lowest price it would accept for this property. 9 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 Ms. Beachkofsky noted that legal would like to approve this as long as sale is as is where it's been marked subject to that. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED DISPOSITION OF 609 E. Mr. Varner and unanimously carried, the COLUMBIA SUBJECT TO LEGAL REVIEW FOR Commission approved disposition of 609 E. FINAL APPROVAL. Columbia subject to legal review for final approval. C. Airport Economic Development Area (1) Facade Easement Agreement with Data Realty. Mr. Kain noted first updated the Commission on the construction at Ignition Park. Construction is in full swing with 30-40% of the overall project complete. The streets have been graded, utilities have gone in and at the same time, Data Realty has broken ground and hope to be open by fall this year. 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 park. As part of the contract for sale, the Commission agreed to provide site improvements (paving, landscaping, lighting, etc.)to the Data Realty site equal to the amount of the facade enhancement work performed by Data Realty up to an amount of $1,400,000. 10 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 The Facade 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 Facade 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. Facade Improvement: Purchase metal panels and screen wall coverings for the approved facade design in the amount of$747,576. In order to do this, Data Realty would grant the Commission a facade easement for a term of seven years. 2. 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 11 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 facade work and is under the budgeted amount of$1,400,000 for this project. Staff requests Commission approval of the Facade Easement and Amendment to the Use, Management and Operations agreement. Mr. Varner asked why Data Realty would grant the Commission a facade easement for a term of seven years. Mr. Kain responded that it was discussed between the attorneys the fact that seven years was a reasonable time for the City to own the equipment. There are design guidelines in place that would require in order to maintain the panels and to keep the aesthetics of the park to certain standards even if we did not own after seven years, we would still control the way the building looked. Mr. Varner asked if the City would control the facades of everyone in the park. Mr. Kain expressed that that is not his understanding moving forward. 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 spoke to the City's IT Department and he is not aware of any great opportunity right now, but perhaps down the road. In speaking with other businesses, staff thinks we may be able to use them as part of our business development activities. Mr. Varner misunderstood assuming these are racks of equipment. Mr. Kain clarified that these are empty shelves. 12 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 Mr. Downes asked for clarification on the Architectural Review Committee, that committee because of the PUD, that committee would in fact have to approve all design. Mr. Kain answered yes. Mr. Davis asked who won out the bid for the construction contract. Mr. Kain responded that Data Realty bid out their own project and that Turner Construction is the general contractor. Mr. Davis asked if MBE and WBE were part of the conversation. 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 their work on the Kroc Center and the success they had with the MBE and the WBE's there. 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 outside legal, Mr. Randy Rompola, that this is ineligible 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 added that he had a revised agreement. The one change in the agreement is for the ability for Data Realty to purchase the equipment back from the City in seven years. That was not included in the initial agreement. Mr. Inks asked if that was subject to going through the 13 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 redevelopment process for this position. Mr. Davis asked for a list of TIF requirements on paper on requirements for or asking for the ability to use TIF dollars to leverage participation. We use the state code. Mr. Inks noted that the state code prevails. In practice, folks are looking for creative ways to use the funds within the statute. The other aspect in using TIF, in terms of how much TIF to put into a particular project given the benefit is giving back to the community, we have general rules of thumb but those are being reviewed. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED FACADE EASEMENT Mr. Davis and unanimously carried, the AGREEMENT WITH DATA REALTY SUBJECT TO Commission approved Facade Easement LEGAL REVIEW. 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 COMMISSION APPROVED FIRST AMENDMENT TO Mr. Davis and unanimously carried, the THE USE,MANAGEMENT,AND OPERATIONS Commission approved First Amendment to AGREEMENT DATED NOVEMBER 17,2011 WITH DATA REALTY NORTHERN INDIANA,LLC, the Use, Management, and Operations SUBJECT TO LEGAL REVIEW. 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. Relos noted the acquisition of 1504 S. Kemble. This property was added to the Airport Economic Development Area's Acquisition List by Resolution No. 2668 on 14 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 May 21, 2010. It was added in an effort to clean and clear the southern boundary of Ignition Park and to help stabilize the Rum Village neighborhood to the south. The Rum Village Neighborhood Association strongly supports the redevelopment of this area on the north side of Indiana Avenue. This particular property is a two story, two bedroom, 1,174 square foot single family residence. The property owner would like to participate in the goals of the Commission to clean and clear this area and contacted staff of their interest in selling this property. Resolution No. 3022 sets the acquisition value of the property at $18,500. The acquisition value is the average value as determined by two independent appraisals. Staff requests approval of Resolution No. 3022, to allow for the acquisition of this property. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.3022 Mr. Downes and unanimously carried, the RELATED TO ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 3022 AIRPORT ECONOMIC DEVELOPMENT AREA. related to acquisition of property in the (1504 S.KEMBLE) Airport Economic Development Area. (15 04 S. Kemble) (4) Resolution No. 3027 related to acquisition of property in the Airport Economic Development Area. (721 W. Indiana) Mr. Relos noted the staff report for the acquisition of 721 W. Indiana. This property was added to the Airport Economic Development Area's Acquisition List by Resolution No. 2668 on May 21, 2010. It was added in an effort to clean and clear the southern boundary of Ignition Park and to 15 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 help stabilize the Rum Village neighborhood to the south. The Rum Village Neighborhood Association strongly supports the redevelopment of this area on the north side of Indiana Avenue. This particular property is a large commercially zoned double lot at the northeast corner of Kendall and Indiana. The property owner would like to participate in the goals of the Commission to clean and clear this area and contacted staff of their interest in selling this property. Resolution No. 3027 sets the acquisition value of the property at $15,750. The acquisition value is the average value as determined by two independent appraisals. Staff requests approval of Resolution No. 3027, to allow for the acquisition of this property. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.3027 Mr. Downes and unanimously carried, the RELATED TO ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 3027 AIRPORT ECONOMIC DEVELOPMENT AREA.(721 related to acquisition of property in the W.INDIANA) 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 the staff report for the acquisition of 913-915 W. Indiana. This property was added to the Airport Economic Development Area's Acquisition List by Resolution No. 2668 on May 21, 2010. It was added in an effort to clean and clear the southern boundary of Ignition Park, and to help stabilize the Rum Village neighborhood 16 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 to the south. The Rum Village Neighborhood Association strongly supports the redevelopment of this area on the north side of Indiana Avenue. This particular property is a 3,820 square foot, one story office/warehouse building. The property owner would like to participate in the goals of the Commission to clean and clear this area and contacted staff of their interest in selling this property. Resolution No. 3028 sets the acquisition value of the property at $21,000. The acquisition value is the average value as determined by two independent appraisals. Staff requests approval of Resolution No. 3028 to allow for the acquisition of this property. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.3028 Mr. Downes and unanimously carried, the RELATED TO ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 3028 AIRPORT ECONOMIC DEVELOPMENT AREA. related to acquisition of property in the (913-915 W.INDIANA) 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 the staff report for the acquisition of 1522 Prairie. This property was added to the Airport Economic Development Area's Acquisition List by Resolution No. 2668 on May 21, 2010. It was added in an effort to clean and clear the southern boundary of Ignition Park and to help stabilize the Rum Village neighborhood to the south. The Rum Village Neighborhood Association strongly supports 17 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 the redevelopment of this area on the north side of Indiana Avenue. This particular property is a 3,200 square foot, one story warehouse building. The property owner would like to participate in the goals of the Commission to clean and clear this area, and contacted staff of their interest in selling this property. Resolution No. 3029 sets the acquisition value of the property at $28,500. The acquisition value is the average value as determined by two independent appraisals. Staff requests approval of Resolution No. 3029, to allow for the acquisition of this property. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.3029 Mr. Downes and unanimously carried, the RELATED TO ACQUISITION OF PROPERTY IN Commission approved Resolution No. 3029 THE AIRPORT ECONOMIC DEVELOPMENT AREA. related to acquisition of property in the (1522 PRAIRIE AVE.) Airport Economic Development Area. (1522 Prairie Ave.) (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 Resolution No. 3030 and an Amendment to the Addendum to Master Agency Agreement for Ignition Park Phase 1 A Infrastructure. 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 18 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 engineering work for Ignition Park Phase 1 A Infrastructure. As part of this, 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. Staff is requesting an amendment to the contract with BSA LifeStructures in the amount of$9,750 accomplished through Resolution No. 3030 and the Amendment to the Addendum to the Master Agency Agreement. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.3030 Mr. Alford and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 3030 OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT(IGNITION PARK approving and authorizing the execution of PHASE IA INFRASTRUCTURE-SUPPLEMENT#1). an amendment to the Addendum to the Master Agency Agreement (Ignition Park Phase I 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 he passed out a map 19 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 prior to this meeting explaining what Supplements #1, #2, and #3 do. Resolution No. 3024 and Amendment to the Addendum To Master Agency Agreement for the Olive Road Right-Of-Way Acquisition - Supplement#1. 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 the staff is finalizing the acquisition of the necessary right-of-way for this section of improved roadway. This Supplement #1 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 Michiana Lutheran Education Association (MLEA) for the acquisition of right-of-way property at the southeast corner of Nimtz and Olive. The improvements contemplated by the work needed to be done during the summer session so as not to disrupt the education activities at the school during the school year. Supplement#1 deals only with the design and bidding work necessary for this project and Supplement#2 will set up a budget for the construction work to be done on site. Mr. Relos noted that these all deal with 20 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 Olive Road improvements, north of Lincolnway to Nimtz Parkway and the third dealing with the Olive Road connector south of Lincolnway. A map was passed out that Mr. Schalliol had done prior to this meeting that explains what Supplement #1, #2 and #3 do. Supplement #1 has to do with the design and plans for the improvements north of Lincolnway, basically at the corner of Olive Road and Nimtz Parkway. As part of the Olive Road project, there needs to be certain retention basins along the stretch of road. This one here, in particular, there's an existing retention basin in the blue rectangular area. What this does is expand on the existing basin to allow drainage. Right now that basin was built for a capacity of north of Nimtz/Olive Road in that area to accommodate additional water flow into it along the improved Olive Road. Where the Supplement #2 box is, there is a hill there, so this would feed into the basin north of the hill, thus the road is improved. So Supplement #1 basically is a contract for $14,000 to design and plan for that improved and expanded retention basin. The second supplement deals with the actual building, or expanding of the retention basin as part of the right-of-way acquisition. Right on the corner there is the Lutheran Academy, if you will. Working with them to gain what the green line there is, is sewer easement that we needed to get from the academy to run from the guttering and the catch basin at the bottom of the hill there to run it into the new expanded basin. This supplement #2 basically sets the budget for that work. The engineers estimate was about $110,000 and we're asking for not-to- 21 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 exceed of$125,000 to do this work. This work does need to be done yet this year before the academy starts their fall term. Staff requests approval of Resolution No. 3024 and the Amendment to the Addendum To Master Agency Agreement for the Olive Road Right-Of-Way Acquisition - Supplement#1. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.3024 Mr. Alford and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 3024 OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT(OLIVE ROAD approving and authorizing the execution of RIGHT-OF-WAY ACQUISITION-SUPPLEMENT an Amendment to the Addendum to the #1). 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 Resolution No. 3025 and Amendment to the Addendum To Master Agency Agreement for the Olive Road Right-Of-Way Acquisition - Supplement#2. Supplement#1 specifically dealt with Professional Service work necessary for 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 improvements to the pond and related site work are part of the acquisition agreement reached between the City's Board of Public Works and the Michiana Lutheran Education Association (MLEA) for the acquisition of right-of-way property at the southeast corner 22 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 of Nimtz and Olive. The improvements contemplated by the work needed to be done during the summer session so as not to disrupt the education activities at the school during the school year. Supplement#2 sets up a budget for the construction work to be done on site. (A copy of the project budget and plan were provided.) The Engineer's Estimate 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 and the Amendment to the Addendum To Master Agency Agreement for the Olive Road Right-Of-Way Acquisition - Supplement#2 with a not-to-exceed amount $125,000. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.3025 Mr. Alford and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 3025 OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT(OLIVE ROAD approving and authorizing the execution of RIGHT-OF-WAY ACQUISITION-SUPPLEMENT an Amendment to the Addendum to the #2). Master Agency Agreement (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 Resolution No. 3026 and Amendment to the Addendum To Master Agency Agreement for the Olive Road Right-Of-Way Acquisition - Supplement#3. 23 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 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 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. Supplement #3—there is some initial planning just to get Olive Road,which now runs from Lincolnway up to Brick. Eventually we'd like to get this corridor all the way from Western Avenue on the south, State Road 2, all the way up to Adams Road which really opens this area up to a great development area on the west 24 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 side of South Bend. This particular supplement is for $35,000 adding for us some redesign work, preliminary redesign work, south of Lincolnway where it would come down and eventually tie into Pine Road that would go into Western Avenue. Right now the Airport Authority actually has under contract the main area that this connector would go through. As an agreement with the Airport Authority, there is just one property right at the corner of Olive and Lincolnway that we would need to acquire any access, which seems to be very little, from that would be granted to the Airport Authority in exchange for them in order for them to build the road through the property and eventually tie into Pine and that would take us from Western up Pine to Olive and eventually all the way up to Adams Road. So Supplement #3 is a $35,000 agreement just to do some design work primarily at the intersection. Staff requests approval of Resolution No. 3026 and the Amendment to the Addendum To Master Agency Agreement for the Olive Road Right-Of-Way Acquisition - Supplement#3. Mr. Davis asked what the homeowners were saying on Olive Road. Mr. Relos responded that most of the right-of-way has been acquired. Mr. Davis inquired about the new traffic coming down their road. Mr. Relos noted that it really only effects the east side of Olive Road. Mr. Davis noted his concern for Supplement #3 due to the change in traffic patterns heading west and again, diversions bypassing the City of South 25 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 Bend. There are retailers there that could potentially take a hit due to lack of traffic. Mr. Relos said he didn't think the plans are to open up Pine Road to do it from this point north of Lincolnway but to be able to cross Pine to continue heading south. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.3026 Mr. Alford and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 3026 OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT(OLIVE ROAD approving and authorizing the execution of RIGHT-OF-WAY ACQUISITION-SUPPLEMENT an Amendment to the Addendum to the #3). Master Agency Agreement (Olive Road Right-of-Way Acquisition— Supplement#3). Mr. Davis opposed. D. West Washington-Chapin Development Area There was no business in the West Washington- THERE WAS NO BUSINESS IN THE WEST Chapin Development Area. WASHINGTON-CHAPIN DEVELOPMENT AREA. E. South Side Development Area (1) Resolution No. 3023 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Main- Lafayette Connector Design Project— Supplement #5). Mr. Relos noted Resolution No. 3023 and Amendment to the Addendum To Master Agency Agreement for the Main-Lafayette Corridor Project, Supplement#5. 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 $4.3 million (for the record, Mr. Relos noted it 26 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 should read $4.5 million and this needs to be changed) 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 take 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. 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 work. Mr. Relos said no. Mr. Varner asked how far down the road is that work? 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 issue with Chippewa 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. Once the Street Department goes in there, the City will tear up one side of the street and then go in and patch it. So now there is a quarter of the street torn up and patched verses resurfacing the whole street. Mr. Relos also noted that Barbie Street will 27 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 stay the same. What is affected is Main, Lafayette, the redesign of Main curving over to connect with Lafayette at the light. Separately, as part of SR31 redesign project, the way it connects into Michigan Street, when heading north, unless you get on at Kern, and get on the new bypass, that will end up where it is now. If you don't take that Kern exit, then it feeds into the neighborhoods on the east side of Michigan around Johnson Road eventually working up to Fellows Street to get over the existing bypass and dump you out there at Ireland. Mr. Varner noted then you are then diverting traffic patterns. Have the potential results been considered? Mr. Relos noted that was INDOT's plan. They changed it. It's a very convoluted path to get you up to Fellows Street by Jackson High School. Mr. Varner noted, if you don't take the Kern Road exit ... Mr. Relos, you can take Johnson over to Miami. If you're coming up to the existing SR31, you're still able to turn. There are several ways to cross-over to Miami. Fellows to Chippewa is a separate project from this. Mr. Davis asked whether there is an INDOT plan that the City doesn't know anything about. He's interested in knowing what things will look like ten years from now. Ms. Jones offered the idea of INDOT's web page. Mr. Relos relayed that Engineering or the Board of Public Works have been involved with the design and worked with INDOT to come up with the best possible plan for the City. Mr. Davis asked who the Commission's contact is locally then with INDOT. Answered more specifically, Mr. Gary Gilot. Mr. Relos offered to get the plan for the Commission. 28 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOLUTION No.3023 Mr. Downes and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION Commission approved Resolution No. 3023 OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT(MAIN- approving and authorizing the execution of LAFAYETTE CONNECTOR DESIGN PROJECT- an Amendment to the Addendum to the SUPPLEMENT#5). Master Agency Agreement (Main-Lafayette Connector Design Project— Supplement#5). Mr. Davis opposed. F. Northeast Neighborhood Development Area There was no business in the Northeast THERE WAS NO BUSINESS IN THE NORTHEAST Neighborhood Development Area. NEIGHBORHOOD DEVELOPMENT UREA. G. Douglas Road Economic Development Area There was no business in the Douglas Road THERE WAS NO BUSINESS IN THE DOUGLAS Economic Development Area. ROAD ECONOMIC DEVELOPMENT AREA. H. Ratification of Services Contracts Upon a motion by Mr. Downes, seconded by Mr. COMMISSION RATIFIED THE SERVICE Davis and unanimously carried, the Commission CONTRACTS. ratified the service contracts. L Ratification of Temporary Use Agreements Upon a motion by Mr. Downes, seconded by Mr. COMMISSION RATIFIED THE TEMPORARY USE Davis and unanimously carried, the Commission AGREEMENTS. ratified the temporary use agreements. 7. PROGRESS REPORTS A. Tax Abatement Mr. Inks noted that Mr. Davis' committee communicated to the Redevelopment Commission from the South Bend Common Council and indicated that they will, as the local tax abatement requires, even numbered years of tax abatement, so that is in the 29 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 forefront. B. Common Council C. Other Mr. Inks noted that there is a special meeting of the Redevelopment Commission from 4:30 p.m. to 6:30 p.m., April 25, 2012. All are welcome to attend. The reason we did the special meeting was in case we had a quorum show up. Since Mr. Varner and Mr. Davis are both on the Council, we would expect they would be there tomorrow and if anyone else wants to show up to give us a quorum, we need to have a posted meeting, so hence the special meeting. This is a TIF presentation. Randy from Faegre Baker Daniels will be there to talk about state law and the rules regarding TIF. Mr. Inks will do a briefing on the City's own TIF areas. Mr. Inks noted that a quorum is not needed. Mr. Downes mentioned he will be there. Mr. Inks said then there will be a posted meeting and there will be a quorum present. Mr. Inks also noted that there is a revised LPGA agreement. The Commission previously approved an agreement and there were some changes made to it. Legal is in the process of reviewing those changes. Ms. Beachkofsky noted that there are significant and several changes made from the original version. There is financial significance to it. It's being reviewed right now. Mr. Inks inquired whether there was a way the Commission can get authorization to approve it subject to final legal. Ms. Leonard Inks added that the only number she heard was the amount of insurance needed to increase from 30 South Bend Redevelopment Commission Regular Meeting—April 24, 2012 $2 million to $3 million. Mr. Beachkofsky approved that it be approved subject to legal review. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED THE LPGA Mr. Alford and unanimously carried, the AGREEMENT SUBJECT TO LEGAL REVIEW. Commission approved the LPGA Agreement subject to legal review. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Tuesday, May 8, 2012 at 4:00 p.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, M made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 5:08 p.m. ,. 31