Loading...
HomeMy WebLinkAbout2 MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING May 8, 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 Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. David Relos, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Ms. Beth Leonard Inks, Community & Econ Development Ms. Patti Lesniewicz, Economic Development Mr. Mark Seaman, Prism Science Mr. Thomas Coley, Ivy Tech Community College Mr. Mark Peterson, WNDU Mr. Eric Walton, WNDU Mr. Kevin Allen, South Bend Tribune Ms. Catherine Toppel, Code Enforcement Mr. Trent Rock, Federal Mogul Powertrain Mr. Chuck O'Connor, Federal Mogul Powertrain Mr. Gary Horvath, Police Dept. Ms. Colleen Ferrara, WSBT News Ms. Ann Carol Nash, Asst. City Attorney Ms. Valerie Shey, CARE Ms. Mo Miller 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Tuesday, April 24, 2012. Upon a motion by Mr. Downes, seconded by Mr. COMMISSION APPROVED THE MINUTES OF THE Alford and unanimously carried, the Commission REGULAR MEETING OF TUESDAY, APRIL 24, 2012. South Bend Redevelopment Commission Regular Meeting —May 8, 2012 2. APPROVAL OF MINUTES (CONT.) A. Minutes of April 24, 2012 approved the Minutes of the Regular Meeting of Tuesday, April 24, 2012. 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted May 8, 2012 for approval. 324 AIRPORT AEDA 50,878.00 410 S Lafayette Prop Rose Pest Solutions 103.00 Ignition Pk Feasibility Study & Business Graham Allen Partners 16,000.00 Plan Hull & Associates, Inc 2,543.86 Olive Industrial Pk Area C DLZ 640.00 SB- Studebaker Demo area A DLZ 1,237.50 SB -On- Site - Bidpck B Tri County News 57.39 Engineering for Expansion of Olive DLZ 486.00 Rd/Pine BSA Life Structures 7,795.65 Ignition Pk Energy Feasibility Study Meridian Title 25,402.26 1509 S. Scott George Strante Meridian Title 6,501.53 725 -731 W Indiana Strante's St. Joseph County Treasurer 53,209.46 Property Taxes 2011 -2012 Blue Waters Group 7,500.00 Consulting Agreement Wightman Petrie 40,204.90 Ivy Tower Abonmarche 5,000.00 Nimtz Parkway Multi -Use Path DLZ 7,315.00 US 31 Adams Rd interchange Seige Construction Co, Inc. 495,669.92 Ignition Pk Ph 1 A Meridian Title 16,299.95 721 W Indiana Kraft Tire Inc New Facility for So. Bend Animal Ziolkowski Construction, Inc. 172,497.20 Control 420 FUND TIF DISTRICT -SBCDA GENERAL Meridian Title Corp 50,878.00 410 S Lafayette Prop Rose Pest Solutions 103.00 LaSalle Hotel Pest Control South Bend Water Works 44.56 325 S Lafayette Blvd Coveleski Stadium Rehabilitation 2012 South Bend Tribune 98.42 Improvements Coveleski Stadium Rehabilitation 2012 Tri County News 57.39 Improvements South Bend Tribune 98.42 ACSNA Project Site Improvements Tri County News 57.39 ACSNA Project Site Improvements ARC 82.53 ACSNA Project Site Improvements Larson - Danielson Construction 290,873.33 Coveleski Stadium Meridian Title Corp 317.00 PM Sale of Troeger Site 11 South Bend Redevelopment Commission Regular Meeting —May 8, 2012 3. APPROVAL OF CLAIMS (CONT.) 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT The Troyer Group SB- Fagade Studies Skyway Memorial B 3,311.65 Warner, Bank & MarMain Ph II 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA #1 St. Joseph County Treasurer 28.39 Christopher B. Burke Engineering 46,115.34 Christopher B. Burke Engineering 435 FUND DOUGLAS ROAD Abonmarche 5,044.00 748 Hawbaker Fellows St. Improvements Ph 2 High & Hawbaker Sidewalk & Landscaping Project 4,500.00 SR 23 and Douglas Right Turn Lane $ 1,259,912.65 Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved the Claims submitted May 8, 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. Public Hearing (1) Public Hearing on Resolution No. 3018 appropriating funds from the Certified Technology Park Fund for the payment of certain obligations and expenses related to the Certified Technology Park. Mr. Inks noted that staff has a complete public hearing file which contains: 1) a copy of Resolution No. 3017 determining to make the appropriation and setting the public 3 COMMISSION APPROVED THE CLAIMS SUBMITTED MAY 8, 2012, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting —May 8, 2012 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... hearing on Resolution No. 3018; 2) a copy of the notice of the hearing; 3) a copy of Resolution No. 3018 subject of public hearing; and copies of the affidavits from the South Bend Tribune and the Tri- County News that the notice of hearing was published in those newspapers on April 27, 2012. Ms. Leonard Inks noted that Resolution No. 3018 appropriates approximately $813,000 received from the state into the Certified Tech Park fund. Staff will bring back to the Redevelopment Commission at a later date a contract either to use those with the City or through the University of Notre Dame for eligible Tech Park expenses. Ms. Jones opened the public hearing for anyone who wished to speak regarding Resolution No. 3018. There was no one who wished to speak. Ms. Jones closed the public hearing for whatever action the Commission wished to take. (2) Consideration of Resolution No. 3018. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Public Hearing on Resolution No. 3018 appropriating funds from the Certified Technology Park Fund for the payment of certain obligations and expenses related to the Certified Technology Park. 9 PUBLIC HEARING ON RESOLUTION NO. 3018 COMMISSION APPROVED PUBLIC HEARING ON RESOLUTION NO. 3018 APPROPRIATING FUNDS FROM THE CERTIFIED TECHNOLOGY PARK FUND FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THE CERTIFIED TECHNOLOGY PARK South Bend Redevelopment Commission Regular Meeting —May 8, 2012 6. NEW BUSINESS (CONT.) B. Tax Abatements (1) Resolution No. 3033 approving an application for personal property tax deduction for property located at 3605 West Cleveland Road in the Airport Economic Development Area (Federal Mogul Powertrain, Inc.). Mr. Inks noted that Federal -Mogul Powertrain, Inc. is a manufacturer of automotive pistons. Customers include most of the major foreign and domestic automotive manufacturers. Operations in South Bend began in 1987. Federal - Mogul, Inc. has maintained employment levels consistently between 300 and 400 full time positions with total salaries between $18 million and $20 million. Total gross sales generated from the South Bend facility averaged $82 million over the past five years. Approval of this application will allow for continued capital investment in the South Bend facility. Without additional investment and greater production efficiencies offered by newer processes and new product lines, more than 70% of the existing production would likely be shifted outside Indiana — most likely to another country. The project will invest $18,340,000 in new manufacturing equipment including: 1. a Gen V 5.31, Piston Line 2. a Gen V 4.3L/6.2L Piston Line 3. a LKW 2.51, Piston Line 4. an aluminum bulk metal furnace Additionally, they will install a new R & D prototype lab costing $3,462,000. The total project cost is $21,802,000. Based on that South Bend Redevelopment Commission Regular Meeting —May 8, 2012 6. NEW BUSINESS (CONT.) B. Tax Abatement (1) continued... project cost, the total taxes to be abated during the five -year abatement period are estimated at $215,239. Total new taxes to be paid over five years are $1,898,562. Combined existing and new taxes will be $6,310,349 over the five years. The project will create 20 new permanent full time jobs within the first year with a new annual payroll of $932,000. The project will maintain 409 existing permanent full time jobs representing an annual payroll of $20.5 million. Federal Mogul has had many tax abatements over the years, both real and personal. They are current on all of the required reporting. Mr. Inks noted that the property is properly zoned for the proposed project. The property is located in the Airport Economic Development Area; therefore, the petition must be approved by the Redevelopment Commission before going before the Common Council. The project qualifies for five years of personal property tax deduction under the tax abatement ordinance. Mr. Inks introduced representatives from Federal - Mogul, Chuck O'Connor and Trent Rock, for any questions. Mr. Varner asked if this was an expansion or a continuation on the re- investment. Mr. Rock replied that it's as much an upgraded capability as capacity as new technology and engines evolve. The investment they are 6 South Bend Redevelopment Commission Regular Meeting —May 8, 2012 6. NEW BUSINESS (CONT.) B. Tax Abatement (1) continued... putting in is to make the next generation components in addition to expanding our proto -type ability. They are now in center of global proto- typing manufacturer for all of Federal -Mogul Pistons world -wide. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3033 approving an application for personal property tax deduction for property located at 3605 West Cleveland Road in the Airport Economic Development Area (Federal Mogul Powertrain, Inc.). C. South Bend Central Development Area (1) Downtown Police Substation Ms. Jennings noted that the South Bend Police Department has requested a space for a police sub - station in the downtown area. The location at 119 South Michigan recently became vacant. Redevelopment retail offered the space to the South Bend Police Department (SBPD) under the following terms: • Reimbursement of Commission expenses in monthly installments of $895.49. Total annual installments wold be $10,745.88. • The SBPD will be responsible for the payment of all utilities • The SBPD will be allowed to terminate the License Agreement at 7 COMMISSION APPROVED RESOLUTION NO. 3033 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 3605 WEST CLEVELAND ROAD IN THE AIRPORT ECONOMIC DEVELOPMENT AREA (FEDERAL MOGUL POWERTRAIN, INC.). South Bend Redevelopment Commission Regular Meeting —May 8, 2012 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... • any time with a 30 -day written notice • Redevelopment Commission has the option to relocate the SBPD sub- station to another available Commission owned space if the need arises with a 30 -day notice to SBPD Redevelopment Retail welcomes the South Bend Police Department and believes its presence in the downtown South Bend area is a positive benefit to the businesses and customers downtown. Staff recommends approval of a Use and Occupancy License Agreement with the Police Department for the space. Mr. Varner asked why this is referred to as a license agreement versus a lease. Mr. Meteiver responded that there would be numerous other procedures required to establish a lease between the two entities. The fact that we are establishing simply a license, allows us to accomplish this without those additional procedures. Mr. Inks noted that our retail space is part of an enterprise fund from an accounting perspective so it is important for us to realize revenues equal to or slightly in access of our expenses. This fund is not supported by TIF. Most of the expenditures in the fund are not TIF eligible. This agreement calls for reimbursement of our costs so expenses that South Bend Redevelopment Commission Regular Meeting —May 8, 2012 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (1) continued... we incur to manage and maintain the property are all covered by the Police Department's monthly payment. Mr. Downes mentioned he spoke to several downtown business owners about the police substation and they are all very excited about it. However, Mr. Downes believes it would be preferable if there were a retail operation there and the police could locate someplace else. He asked how the Police Department would feel if a viable tenant comes along, and the police sub - station was asked to relocate? Mr. Horvath relayed that the retail space is centrally located for the Police Department and ideal for deployment of foot patrols as well as bike officers. It will cut down on response times. It's also a very good use of city -owned property at a very good rate to the Police Department. The police are aware it could be asked to relocate. Mr. Davis relayed his excitement to have the police in the downtown, for both the perception and reality of safety. Upon a motion by Mr. Downes, seconded by Mr. Davis and unanimously carried, the Commission approved Use and Occupancy License Agreement with the Police Department for use of 119 S. Michigan Street as a police sub - station. 0] COMMISSION APPROVED USE AND OCCUPANCY LICENSE AGREEMENT WITH THE POLICE DEPARTMENT FOR USE OF 119 S. MICHIGAN STREET AS A POLICE SUB - STATION South Bend Redevelopment Commission Regular Meeting —May 8, 2012 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) Letter of Clarification — Kitson & Partners Management Agreement for Blackthorn Golf Course (LPGS Symetra Tour). Ms. Leonard Inks noted that Kitson & Partners submitted a letter clarifying some of the terms of our contract with them for the LPGA event. Ms. DeRose, Interim City Attorney, has reviewed and finds the clarifications acceptable. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved the Letter of Clarification — Kitson & Partners Management Agreement for Blackthorn Golf Course (LPGS Symetra Tour). (2) Request for additional funding for completion of South Bend Animal Care & Control project. Mr. Relos noted that on February 19, 2010, the Commission approved funding of $1.5 million for a new South Bend Animal Care & Control Shelter at 521 Eclipse Place. When bids were received, the project came in much above that amount, and it was apparent additional funding was required. On August 9, 2011, the Commission approved $400,000 in additional funding, which allowed the project to be awarded to the low bidder, but did not allow for any contingency funds. As construction progressed, the following 10 COMMISSION APPROVED THE LETTER OF CLARIFICATION - KITSON & PARTNERS MANAGEMENT AGREEMENT FOR BLACKTHORN GOLF COURSE (LPGS SYMETRA TOUR). South Bend Redevelopment Commission Regular Meeting —May 8, 2012 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (2) continued... five items were discovered that need to be addressed: • contaminated soils were found (removal cost $10,000) • skim coat original wood floor to make it level ($12,000) • fiber optic line to the building ($11,000) • design modification requires a new water heater ($1,800) • night drop off area cages ($2,240) To address these items and complete the project, $43,000 in additional funding is needed. This amount allows approximately $6,000 contingency in case another item is discovered. Staff requests Commission approval of an additional $43,000, to complete this important project for the care and control of the animal population in South Bend. Mr. Varner asked when the facility would open. Ms. Toppel responded that it could open the end of May, with a Grand Opening the third week of June when the mayor is available. Mr. Varner asked what the final cost is. Ms. Toppel responded $1,943,000. Ms. Toppel added that some of the contaminated soils have been removed from the site. There were insurance funds from 11 South Bend Redevelopment Commission Regular Meeting —May 8, 2012 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (2) continued... another project that the City received last year; monies in the amount of $35,000 were forwarded over to this project. However, with removal of the stoops, it was determined there was contaminated soil under the stoops. Mr. Relos noted that there were other items that came about that Ms. Toppel and others were able to raise additional funds to cover costs and the project has been value - engineered down as much as possible. Mr. Davis expressed concern that this was the second or third time that additional money has been asked for. Where were the additional funds acquired from? Ms. Toppel explained that there was a security system for $10,000 funded from CARE along with the surgical suite for a total of $19,000. She took funds from the insurance fund to pay for the soils contamination and asbestos, lead and mold found. The project was value - engineered so that the city will only pay for the materials for the Street Department to come in and do the entire parking lot. The fiber throughout the building was done by staff after hours and on weekends (the city's metronet). She also noted that up until today, everything is paid for. Mr. Davis asked if this is the last time that funds will be requested. Ms. Toppel replied yes. Mr. Davis asked if the building will pay for itself. Ms. Toppel again explained the average cost per animal, for each animal that comes through the facility, is $10 for the life of the building (40 years). Mr. Davis asked 12 South Bend Redevelopment Commission Regular Meeting —May 8, 2012 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (2) continued... who was in charge of making all the plans for the Animal Shelter. Ms. Toppel noted that the plans were done by an architect; soil samples were done by Whiteman Petrie; an energy evaluation done with Jonathon Burke; Gary Gilot in Engineering; and Rob Nichols. Mr. Downes made a motion to approve the additional $43,000 funding for completion of the South Bend Care & Control facility. Mr. Alford seconded. The motion passed on a vote of four to one. Mr. Davis opposed. Mr. Alford commended Ms. Toppel for searching outs ways to fund the project on her own. Mr. Relos noted also that 50% of adoptions from the South Bend Animal Shelter come from out of state. (3) Donation of former Discount Rental property to Ivy Tech. Mr. Relos noted that on August 26, 2009, the Commission approved the addition of four properties along East Sample St. to the acquisition list of the Airport Economic Development Area. These properties were added in an effort to help Ivy Tech expand classroom, storage, and parking needs in light of their large increases in enrollment. If staff were able to acquire any of these properties, they would then work to donate them to Ivy Tech. 13 COMMISSION APPROVED $43,000 ADDITIONAL FUNDING FOR COMPLETION OF SOUTH BEND ANIMAL CARE & CONTROL PROJECT. South Bend Redevelopment Commission Regular Meeting —May 8, 2012 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (3) continued... On July 9, 2010, the Commission approved the donation of the Habitat ReStore property at the southwest corner of Fellows and Sample. With this property, Ivy Tech was able to expand classrooms in the ITOSS building by moving stored materials to the Habitat property, and to expand parking to the east of ITOSS. With the Discount Rental property, Ivy Tech will again be able to expand parking, which is a critical and an immediate need, and would allow additional classes to be held at ITOSS. Similar to the Habitat transaction, and with Legal's review, a Real Estate Donation Agreement will be drafted and brought back to the Commission. Staff requests approval to move forward with the donation to Ivy Tech of the Discount Rental property at 230 E. Sample St. Mr. Relos introduced Chancellor Tom Coley for further questions. Mr. Varner asked Mr. Coley if Ivy Tech could ask the state legislature for funds to reimburse the city for its costs in any future acquisitions. Mr. Coley responded that he would look into the possibility. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved the Donation of 14 COMMISSION APPROVED THE DONATION OF FORMER DISCOUNT RENTAL PROPERTY TO IVY TECH. South Bend Redevelopment Commission Regular Meeting —May 8, 2012 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (3) continued... former Discount Rental property to Ivy Tech. (4) Proposal from Hull & Associates for monitoring wells and preparation of a remediation work plan. Mr. Inks noted that staff solicited a proposal from Hull & Associates for installation of permanent monitoring wells in Ignition Park, soil gas sampling, groundwater sampling and preparation of a Remediation Work Plan for the Indiana Voluntary Remediation Program (VRP). Last month the Commission approved a proposal for groundwater sampling in the former Studebaker Area north of Sample Street. This area, now known as Ignition Park, is enrolled in the Indiana Department of Environmental Management's Voluntary Remediation Program (VRP). The sampling under that proposal has been completed and it is now time to install permanent monitoring wells for sampling both now and over the next few years in conjunction with the remediation that will be proposed in the Remediation Work Plan. This Remediation Work Plan needs to be submitted to the Indiana Department of Environmental Management by June 30, 2012. The staff recommendation is to approve the proposal from Hull & Associates in the amount of $128,469 to allow the city to move forward with the installation of the permanent monitoring wells, complete the next round of sampling and prepare the 15 South Bend Redevelopment Commission Regular Meeting —May 8, 2012 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (4) continued... Remediation Work Plan to IDEM by the June 30, 2012, deadline. Mr. Downes asked if Ms. Kolata was certain IDEM was okay with this. Mr. Inks responded yes. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Proposal from Hull & Associates for monitoring wells & preparation of remediation work plan for the scope of services and fee proposed. E. West Washington - Chapin Development Area There was no business in the West Washington - Chapin Development Area. F. South Side Development Area There was no business in the South Side Development Area. G. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. H. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. 16 COMMISSION APPROVED PROPOSAL FROM HULL & ASSOCIATES FOR MONITORING WELLS & PREPARATION OF REMEDIATION WORK PLAN FOR THE SCOPE OF SERVICES AND FEE PROPOSED. South Bend Redevelopment Commission Regular Meeting —May 8, 2012 6. NEW BUSINESS (CONT.) I. Other (1) Resolution No. 3032 approving a schedule of Regular Meeting Times for the remainder of Calendar Year 2012. Mr. Inks presented the new schedule of meeting times for the remainder of 2012 and asked if the Commissioners had any comments. The new meeting time will be two Thursdays a month at 9:30 a.m. Mr. Varner expressed that he prefers meetings later in the day. Mr. Davis was concerned that the proposed date and time may not be as convenient for working people. He also wondered whether legally there is a conflict with city employees attending the meeting during work hours. He wondered whether the public understands the Commission's order of business. Mr. Meteiver said that staff attending the meeting during working hours is not inappropriate. Ms. Jones noted several of the Commissioners are having conflicts with the current date /time. She also noted that there are a limited number of times during the week that the meeting room is available. She checked with all Commissioners and Thursdays and 9:30 a.m. was a time when all Commissioners said they could make themselves available. In response to Mr. Davis' concern that a daytime meeting is not convenient for the public who may wish to attend, Mr. Downes and Ms. Jones felt that members of the public, when there is an issue on the agenda 17 South Bend Redevelopment Commission Regular Meeting —May 8, 2012 6. NEW BUSINESS (CONT.) I. Other that affects them, find a way to attend the meetings. When someone doesn't have an issue, they don't attend. That is true no matter what time the Commission meets. Mr. Inks noted that the agenda and packets are available online for the public to view. Mr. Downes noted that the meetings could be better advertised and the media could better cover them. Ms. Jones noted that a late day meeting time also causes conflicts, particularly for people who need to take children to after school activities and who want to attend their children's sports events. There is no time that is perfect for all the public. Mr. Downes made a motion to approve Resolution No. 3032. Mr. Alford seconded the motion. The motion passed on a vote of three to two with Mr. Davis and Mr. Varner opposed. 7. PROGRESS REPORTS A. Tax Abatement Mr. Downes asked when the report on abatements would be available. Mr. Inks responded that the report, is due to the Council by June 15, 2012. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is scheduled for Thursday, May 31, 2012 at 9:30 a.m. 18 COMMISSION APPROVED RESOLUTION NO. 3032 APPROVING A SCHEDULE OF REGULAR MEETING TIMES FOR THE REMAINDER OF CALENDAR YEAR 2012. NEXT COMMISSION MEETING South Bend Redevelopment Commission Regular Meeting —May 8, 2012 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, the meeting was adjourned at 4:47 p.m. Donald E. Inks, Director 19 Marcia I. Jones, President