Loading...
HomeMy WebLinkAbout2 MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING May 31, 2012 9:30 a.m. 227 West Jefferson Boulevard Presiding: David Varner, Vice- President/Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President (part of meeting) Dr. David Varner, Vice President Mr. Donald Alford, Secretary Mr. Greg Downes (part of meeting) Mr. Henry Davis Members Absent: Ms. Stephanie Spivey Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Don Inks, Director of Economic Development Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. David Relos, Economic Development Specialist Ms. Ann Kolata, Senior Economic Development Specialist Mr. Jitin Kain, Senior Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mr. Dan Jones Ms. GlendaRae Hernandez Ms. Patti Lesniewicz Ms. Mo Miller Mr. Mark Peterson, WNDU Mr. Dan Schanteld, WNDU Mr. Varner, Vice President, chaired the first part of the meeting, beginning at 9:45 a.m. Mr. Davis asked that Ms. Spivey not be listed as an absent member in future minutes. He understands that the School Board has appointed a replacement for her. South Bend Redevelopment Commission Regular Meeting —May 31, 2012 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Tuesday, May 8, 2012. Upon a motion by Mr. Alford, seconded by Mr. Davis and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Tuesday, May 8, 2012. Mr. Davis asked that Ms. Spivey not be listed as an absent member in future minutes. He understands that the School Board has appointed a replacement for her. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF TUESDAY, MAY 8, 2012. Redevelopment Commission Claims submitted May 31, 2012 for approval. 324 AIRPORT AREA Heppenheimer & Korpal Professional Underground Pipe & Valve Corporation 750.00 ADG 1,200.00 Island Pk Pavilion Michaels Appraisal Service 425.00 1502 S Kendall Witt Appraisal Services, Inc. 400.00 1502 S. Kendall Indiana Dept. Of Environmental MGMT 3,226.67 Comm - Oliver Plow Grinsfelder Associates architects 2,467.20 Animal Care & Control facility DHA 726.00 Routing of AEP Power Line Faegre Baker Daniels 2,335.50 Legal Services Hull & Associates, Inc. 383.80 Ignition Park Grauvogel & Associates 2,025.00 ACM Inspection - Ignition Park South 1,086.76 Studebaker / Oliver Plow Works / Cost Plews Shadley Racher & Braun LLP Recovery L.L Geans Construction Co. 73,723.86 Voorde Park Improvements Meridian Title Corporation 1,377.00 709 W. Indiana BSA Life Structures 6,400.00 Ignition Park Phase 1 A Infrastr. Design Meridian Title Corporation 554.00 1521 Catalpa St. & 713 W Indiana Ave Lawson- Fisher Associates P.0 93,134.18 S Nain /Lafayette connector Lawson - Danielson Const. Co., Inc. 410,721.76 Coveleski Stadium Torok Excavating & Demolition, Inc 4,200.00 Demolition 1512 Kemble St. South Bend Tribune 38.62 Notice to bidders Wightman Petrie 1,705.00 Former EMI Building Demo Plans Sopko, Nussbaum, Inabnit & Kaczmarek 2,306.25 Legal Services Tri- County News 36.36 Notice to bidders 2 South Bend Redevelopment Commission Regular Meeting —May 31, 2012 3. APPROVAL OF CLAIMS (CONT.) 420 FUND TIF DISTRICT -SBCDA GENERAL DTSB Koontz - Wagner Construction Services Ampco System Parking Earth Exploration Rose Pest Solutions CBREJBradley Faegre Baker Daniels All Phase Meridian Title Corp Buxton Casteel Construction Corp C &E Excavating inc. South Bend Tribune South Bend Water Works Michiana Lock & Key Inc Wightman Petrie Sopko, Nussbaum, In Abnit & Kaczmarek 422 TIF DISTRICT WEST WASHINGTON Sopko, Nussbaum, Inabnit & Kaczmarek Gibson -Lewis 426 CENTRAL MEDICAL DLZ Indiana, LLC 429 TIF FUND NORTHEAST DISTRICT DLZ 20,000.00 Beautification/Business Recruitment 770.07 Electrical Installation to repair fountain 626.00 lights & GFI in Pit 1,958.71 St Joseph St & 225 Main St. Surface 317.00 Open Air Covering at Century Center 4,409.75 Island Park 103.00 LaSalle Hotel Pest Control 1,102.50 Legal Services 144,732.12 Hansel Center Rehabilitation 7,851.00 Michigan Street 7,320.00 Eddy St. Corridor Concept Study 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA #1 Pre - Design Services 2012 Coveleski Wightman Petrie 26,064.47 Stadium Remodel Premier College of Cosmetology, Inc. 20,000.00 Relocation Benefits 436 NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA - RESIDENTIAL US Bank 950.00 2008 Eddy St. Commons Lease Rental $ 1,539,631.74 Upon a motion by Mr. Alford, seconded by Mr. Davis COMMISSION APPROVED THE AMENDED CLAIMS and unanimously carried, the Commission approved the LIST SUBMITTED MAY 31, 2012, AND ORDERED CHECKS TO BE RELEASED. 3 Management Fee &Maintenance 770.07 LaSalle Hotel 2,335.50 Legal Services 24.45 LaSalle Hotel 317.00 Closing - Sale of Troeger Site 1,750.00 SCOUT Retail Matching Subscription 435,949.00 Century Center Island Pk Pavilion 249,384.96 ACSNA Project Site Improvements 64.19 Notice to bidders 44.56 322 Lafayette Blvd 134.00 8 Master PadLock VA Clinic 4,517.50 Erskine Golf Course 1,102.50 Legal Services 144,732.12 Hansel Center Rehabilitation 7,851.00 Michigan Street 7,320.00 Eddy St. Corridor Concept Study 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA #1 Pre - Design Services 2012 Coveleski Wightman Petrie 26,064.47 Stadium Remodel Premier College of Cosmetology, Inc. 20,000.00 Relocation Benefits 436 NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA - RESIDENTIAL US Bank 950.00 2008 Eddy St. Commons Lease Rental $ 1,539,631.74 Upon a motion by Mr. Alford, seconded by Mr. Davis COMMISSION APPROVED THE AMENDED CLAIMS and unanimously carried, the Commission approved the LIST SUBMITTED MAY 31, 2012, AND ORDERED CHECKS TO BE RELEASED. 3 South Bend Redevelopment Commission Regular Meeting —May 31, 2012 3. APPROVAL OF CLAIMS (CONT.) amended claims list submitted May 31, 2012, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS A. South Bend Central Development Area (1) Resolution No. 3040 setting a public hearing on the appropriation of South Bend Central Development Area tax increment financing revenues for the payment of certain obligations and expenses related to their respective allocation areas and other related matters. (Public hearing to be held 9:30 a.m., June 28, 2012.) Mr. Inks noted that the additional funding available for this appropriation is from debt service reserves released upon payoff of the SBCDA bonds of 1990/1996 in February of 2012. The majority of the money will be used to cover a correction in the 2012 debt service calculation for the 2003/2011 SBCDA bonds. Mr. Varner asked if these are additional cash resources. Mr. Inks responded that they are. The earlier appropriation was based on estimates. Now that we have the tax disbursement, there is more money than anticipated. Also, due to bond refundings, 4 South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (1) continued... there is a change in the debt service reserve account. Upon a motion by Mr. Alford, seconded by Mr. Davis and unanimously carried, the Commission approved Resolution No. 3040 setting a public hearing on the appropriation of South Bend Central Development Area tax increment financing revenues for the payment of certain obligations and expenses related to their respective allocation areas and other related matters. (Public hearing to be held 9:30 a.m., June 28, 2012.) (2) Filing of Resolution No. 3036 confirming Resolution No. 3006 amending the Development Plan for South Bend Central Development Area and setting a public hearing for 9:30 a.m., June 28, 2012 on Resolution No. 3036. (adding three properties at the northwest corner of Main and Western to the List of Parcels to be Acquired) Mr. Inks noted that on January 23, 2012, the South Bend Redevelopment Commission approved Declaratory Resolution No. 3006 which started the process to amend the South Bend Central Development Area Development Plan to add three properties to the acquisition list. The three properties are located on the northwest corner of the Main Street and Western Avenue and are part of the property acquisitions from GMS Realty (Gates). 5 COMMISSION APPROVED RESOLUTION NO. 3040 SETTING A PUBLIC HEARING ON THE APPROPRIATION OF SOUTH BEND CENTRAL DEVELOPMENT AREA TAX INCREMENT FINANCING REVENUES FOR THE PAYMENT OF CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THEIR RESPECTIVE ALLOCATION AREAS AND OTHER RELATED MATTERS. (PUBLIC HEARING TO BE HELD 9:30 A.M., JUNE 28, 2012.) South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (2) continued... The Area Plan Commission and South Bend Common Council acted to approve the amendment. The next step in the process is to hold a public hearing on the request. Staff requests to set the public hearing for 9:30 a.m., Thursday, June 28, 2012. Mr. Alford made a motion to accept for filing Resolution No. 3036 and set the public hearing on Resolution No. 3036 for 9:30 a.m., June 28, 2012. Mr. Varner seconded the motion. The motion failed to get three favorable votes. Mr. Davis was opposed. (3) Proposal for professional services for site improvements at ACSNA (Western Ave. Veterans Administration Clinic). Mr. Schalliol noted that DJ Construction is the contractor ACS used for its work on the VA Clinic. They have submitted a proposal for construction work the Commission is responsible for in the building's interior and exterior of the project. The scope of services in this agreement consist of environmental remediation, exterior and interior building improvements and improvements that relate and coordinate with the improvements made to the structure by ACS, the building tenant. As part of the reuse plan for the building, all environmental remediation of the building was done at the beginning of the project to eliminate future conflicts when removing asbestos materials. Although only a portion of the building is in use by the clinic, the on THE MOTION TO APPROVE RESOLUTION NO. 3036 DID NOT RECEIVE SUFFICIENT VOTES TO PASS South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (3) continued... entire structure has been remediated to allow for future occupancy. The exterior improvements consist of aesthetic and functional project components. To meet current code, all of the windows along the alley or east side of the building needed to be blocked in to meet code for building spacing. All of the remaining windows on the second floor were covered over or modified to present a uniform appearance for the south and west faces of the building. The windows are not being replaced or filled in because of the uncertainty about the future reuse of the second floor space. Additionally, masonry work is needed to repair a loose section of the fagade and parapet of the building. Once the exterior work is done, the entire building will be painted. The improvements to the interior of the building were related to demolition and clean -up of spaces that would no longer be easily accessible once the clinic space was established on the first floor. Two doors were also replaced for security purposes. Mr. Downes and Ms. Jones joined the meeting at 9:50 a.m. The total project budget for all exterior work to be performed at the site was $432,000 as approved by the Commission earlier in the year (Resolution No. 3005). The total scope of work provided by DJ Construction is 7 South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (3) continued... $156,700 and an itemized listing was provided along with staff report. Staff requests approval of this professional service proposal with DJ Construction. Mr. Davis asked what the relationship was between the Gates facility and the City of South Bend. Mr. Schalliol noted that the Commission owns the building and there is a tenant in the building, ACS. ACS is under contract with the VA to provide community based out patient services, in the building. Mr. Davis asked whether ACS pays property taxes. Mr. Schalliol responded that it does. Mr. Davis asked what the future use of the building is expected to be. Mr. Schalliol responded that the VA clinic is currently using 18,000 sq. ft. The building is one of the sites in St. Joseph County being considered for the VA Super Clinic project. Staff has prepped the building for the Super Clinic project. An asbestos abatement was done along with a series of improvements that would allow that building for reuse. Mr. Davis noted that the building might not be selected as the site for the Super Clinic. Is it suited for any other use? Mr. Schalliol replied that staff is pursuing the Super Clinic project, but, regardless, there is now very nicely improved medical office space on the first floor of the front half of the VA Clinic building. The rest of the space will be 8 South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (3) continued... cleared for possible rental space. There is a business plan for that whole block with other parcels involved. Mr. Davis stated his opinion that the City is playing the lottery with this VA Super Clinic. Mr. Varner asked what square footage is being used by the VA Clinic. Mr. Schalliol responded that the current clinic is using 18,000 sq. ft. of an 80,000 sq. ft. building. Upon a motion by Mr. Downes, seconded by Mr. Alford, the Commission approved the proposal from DJ Construction for site improvements at ACSNA. Mr. Davis opposed. Mr. Inks noted at this time that upon consultation with Mr. Meteiver, it is possible to revisit Item 6A (2) if the Commission so desires. The item was neither approved nor rejected because either action requires three votes. He asked if the Commissioners wanted to reconsider the item at this time, or wait until the June 14 meeting. Ms. Jones assumed the chair. Ms. Jones asked if consideration now would require that the staff report be repeated. Mr. Meteiver said it would not, unless Ms. Jones or Mr. Downes wanted to hear it. Mr. Downes moved that the Commission reconsider agenda item 6A (2). Mr. Alford seconded the motion. The motion carried with Mr. Davis opposed. G� COMMISSION APPROVED THE PROPOSAL FROM DJ CONSTRUCTION FOR SITE IMPROVEMENTS AT ACSNA (WESTERN AVE. VETERANS ADMINISTRATION CLINIC) THE COMMISSION APPROVED THE RECONSIDERATION OF ITEM 6A (2). South Bend Redevelopment Commission Regular Meeting —May 31, 2012 A. South Bend Central Development Area (2) reconsidered... Ms. Jones noted that the Commission agreed to reconsider the filing of Resolution No. 3036 and setting a public hearing for 9:30 a.m., June 28, 2012. She offered an opportunity for questions, then asked for a motion. Upon a motion by Mr. Alford, seconded by Mr. Downes, the Commission accepted for filing Resolution No. 3036 confirming Resolution No. 3006 amending the Development Plan for South Bend Central Development Area and setting a public hearing for 9:30 a.m., June 28, 2012 on Resolution No. 3036. Mr. Davis opposed. (4) Proposal for professional services with The Troyer Group for Memorial Hospital area fagade improvements. Mr. Relos noted that on May 23, 2011, the Commission approved a professional services agreement with The Troyer Group, for design studies of fagade improvements to the Skyway Bridge and along the eastern side of Michigan Street in the Memorial Hospital campus area. On December 13, 2011, the Commission authorized The Troyer Group to move forward with the next phase of work, finalizing those designs, preparing construction bid specs, project bidding evaluation assistance, and construction oversight and close out. Bids have now been opened for the fagade improvement project. They were well under 10 COMMISSION APPROVED FILING OF RESOLUTION No. 3036 CONFIRMING RESOLUTION NO. 3006 AMENDING THE DEVELOPMENT PLAN FOR SOUTH BEND CENTRAL DEVELOPMENT AREA AND SETTING A PUBLIC HEARING FOR 9:30 A.M., JUNE 28, 2012 ON RESOLUTION No. 3036 (ADDING THREE PROPERTIES AT THE NORTHWEST CORNER OF MAIN AND WESTERN TO THE LIST OF PARCELS TO BE ACQUIRED). South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (4) continued... the estimates, allowing the scope of work to be expanded. An identified project that compliments the work being done is to make all the windows and frames in the Skyway Building the same. The proposal from Troyer is to provide addendum documentation, bidding, and construction administration. Troyer estimates the fees for this additional work to be $5,000 to $7,000. Mr. Relos distributed a handout of preliminary improvements for the skyway and building. The skyway would stay the same. The windows will be replaced on the corners of the middle building. Staff requests approval of this Professional Services Agreement, in a not -to- exceed amount of $7,000. Mr. Downes asked if the estimate to complete the work will still be within the original budget. Mr. Relos responded that it will be well below the budgeted amount. Mr. Varner reiterated his earlier request that if there is money left in the medical district TIF, he would like to see improvements made to Leeper Park. Staff agreed they will look into that. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the proposal from The 11 COMMISSION APPROVED THE PROPOSAL FROM THE TROYER GROUP FOR THE SCOPE OF SERVICES PROPOSED AND A NOT -TO- EXCEED AMOUNT OF $7,000. South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (4) continued... Troyer Group for the scope of services proposed and a not -to- exceed amount of $7,000. B. Airport Economic Development Area (1) Resolution No. 3039 related to acquisition of property in the Airport Economic Development (Hamilton Towing properties). Mr. Relos noted that the Hamilton Towing and Body Shop properties were added to the Airport Economic Development Area's acquisition list by Resolution No. 2456 on June 23, 2008. Two of the properties are on a prominent corner near Ignition Park (Lafayette and Sample) and the northernmost property is needed for an electrical power station for the Renaissance District. Resolution No. 3039 sets the acquisition value of these properties at $280,025, the average of two independent appraisals. Mr. Varner asked if that is the last three parcels to complete the corridor to Ignition Park. Mr. Relos responded yes. Two parcels for Ignition Park on Sample and Lafayette and one parcel on the east on Lafayette is a property needed for the Renaissance District. Mr. Davis asked if Ignition Park and the Renaissance District would be sharing the power station planned for this site. Mr. Schalliol replied that the Hamilton Towing 12 South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (1) continued... property needed now to build a substation to power right now the Renaissance District. Could it become a shared substation? Yes. Mr. Davis noted that the Commission just spent $2.2 million for the Renaissance District to become reality. He asked whether these costs were included in that plan. Mr. Schalliol responded that Phase I of the Renaissance District plan included building a substation. Mr. Varner asked the cost of expanding the substation at the Main and Lafayette will be borne by AEP. Mr. Schalliol's response was that some of it will be private dollars and some from AEP. Mr. Davis asked whether Ignition Park or the Renaissance District is the priority now for funding. He would like to see a prioritized list because he believes there is going to be a competition for funds. Ms. Kolata noted that there has long been a plan for the entire Studebaker Corridor, addressing Areas A, B, and C. Area A is the area we've cleared for Ignition Park; Area B is the area north of Sample St.; and Area C is the Oliver Industrial Park. The plan for Area B recognized that the Ivy Tower building was going to be expensive to demolish, but difficult to find a user who would rehab it. And the cleared land, if it was demolished, would not be a reasonably sized development parcel. 13 South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (1) continued... The Renaissance District project reuses the building for at a commitment cost to the city of much less than it would have cost the city to acquire and demolish it. As has been noted previously, the Renaissance District project requires a lot more electrical power than is currently available in that area, so part of the city's commitment to the project is to provide access to the necessary power. Hamilton Body Shop owns a parcel on the north side of Sample that would be a good site for a new AEP substation. We have long wanted to acquire the Hamilton Body Shop properties on the south side of Sample, but were unable to find a location for Hamilton that they would find acceptable. Now, however, Hamilton would like to sell all of these properties in one transaction and will take on itself the responsibility for finding a new location. Ms. Kolata stressed that the purchase of Hamilton Towing and the acquisition of its lot north of Sample is not random. It is the dovetailing of solutions to at least two difficult portions of the plans for Studebaker Areas A and B. It is not that the city is spending money and this is something new; it is that we now have solutions for two problems we didn't know how to solve, and the cost will be substantially less than it might have been. Mr. Davis said that was not the point of his question. He feels that we are spending money we are moving ahead without a clear 14 South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (1) continued... roadmap of priorities. Mr. Schalliol noted that he has been meeting with AEP and the design team and expects to bring a proposal to the Commission at its next meeting for an "energy resource corridor study ". The study will help us coordinate solutions for the power needs of both Ignition Park and the Renaissance District. But, the bottom line is that there is currently not enough power to do both projects or to do either project well. Mr. Davis expressed his wishes to act on this item at the next meeting. Mr. Schalliol noted that the resolution setting the purchase offer price for Hamilton Body Shop is needed regardless of the plan. Commission action on it today will assist him and AEP with the rate discussions. The city has the ability to help AEP with their future power issues at the site. This action on Hamilton today helps the city's position in that discussion. Mr. Davis insisted that the information Mr. Schalliol is privy to would help guide the option of the Commission's approval. Mr. Varner asked if it can be approved with a contingency. Ms. Kolata stated that she believes that is risky. AEP would like to know where its substation can be located. Mr. Downes noted his understanding is that there are three parcels for sale and Hamilton would not be willing to sell them separately. The city has been trying to acquire the Hamilton property for, 25 years. Ms. Kolata 15 South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (1) continued... stated that staff needs to close on the substation parcel by the end of June. That is what makes this resolution urgent today. Mr. Davis asked if this was a public works project at this point. Ms. Kolata answered no, it is a land acquisition project. For it to be a public works project the Commission would have to determine how the property is to be used. The bulk of the property on the south of Sample St. would be added to all the other land that the Commission owns in Ignition Park. Mr. Davis asked if the Hamilton site was to become a public works project, does the Commission have the ability of eminent domain to stop the process. Mr. Schalliol stated that it is in an economic development area which means the city does not have the right of eminent domain. Upon a motion by Mr. Downes, seconded by Mr. Varner, the Commission approved Resolution No. 3039 related to acquisition of property in the Airport Economic Develop- ment (Hamilton Towing properties). Mr. Davis opposed. (2) Purchase Agreement with Hamilton Body Shop and Richard C. Hamilton. Ms. Kolata noted that the Purchase Agreement is to acquire Hamilton Body Shop properties at 802 S. Lafayette, 910 S. Lafayette and 917 S. Lafayette. The 16 COMMISSION APPROVED RESOLUTION NO. 3039 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT (HAMILTON TOWING PROPERTIES). South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (2) continued... Redevelopment Commission has been interested in purchasing these properties for approximately 20 -25 years because of their strategic location in the redevelopment of the former Studebaker Corridor and, now, Ignition park and the Renaissance District Project. The properties are owned by either Hamilton Body Shop Inc. or Richard C. Hamilton. There are three properties in the vicinity of the intersection of Lafayette and Sample. The main property is the Body Shop on the west side of Lafayette at 917 W. Lafayette. The towing portion of the business is at 910 S. Lafayette on the east side of the street. The third property is an auto storage lot at 802 S. Lafayette, on the east side of the street just north of Sample. The property at 802 S. Lafayette is needed for the power sub - station for the Renaissance District Project by August 1, 2012. The properties at 910 and 917 S. Lafayette are located in the Ignition Park planning area and long -term plans call for their acquisition and relocation. Mr. and Mrs. Hamilton are now interested in selling all of these properties to the Redevelopment Commission. The Purchase Agreement outlines the terms that have been negotiated over the past two months. Purchase and Relocation of 802 and 910 S. Lafayette: • Purchase price of $120,000 • Administrative settlement of $140,000 17 South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (2) continued... • Moving costs $25,000 • Re- establishment costs $25,000 • Total of $310,000 — payable all at time of closing • Closing to take place by 6/30/12 • 802 S. Lafayette to be vacated by 7/31/12 • 910 S. Lafayette to be vacated by 3/31/13 Purchase of 917 S. Lafayette: • Purchase price of $200,000 • Administrative settlement of $150,000 • Closing to take place by 3/31/13 • Date of possession 6/30/14 • Total of $350,000 (purchase price and administrative settlement) payable at closing Relocation of 917 S. Lafayette: • Moving costs of $90,000 • Re- establishment costs of $200,000 • Total of $290,000 (moving & re- establishment) payable by 6/30/14 • 917 S. Lafayette to be vacated by 6/30/14 Grand total: $950,000 over three years Staff recommends approval of this Purchase Agreement. It provides for the immediate purchase of the property needed for the timely construction of the sub - station for the 18 South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (2) continued... Renaissance District Project and allows time for Mr. and Mrs. Hamilton to secure new locations for their body shop and towing operations. Mr. Downes asked whether Hamilton has other property it intends to operate is towing business from, or has identified a site for relocation. Mr. Relos thought they have room at the body shop location to house their towing operation temporarily. Ms. Kolata noted that Hamilton Towing's attorney wanted additional language in the agreement related to the relocation payment, as follows: Paragraph one page two: "the owner hereby agrees to sell the property to the City for $320,000 together with an administrative settlement of $290,000 and relocation and re- establishment costs of $340,000 for a total of $950,000 subject to the following terms." Mr. Varner asked Ms. Kolata to explain the difference between administrative settlement and re- establishment costs. Ms. Kolata explained that the administrative settlement is the difference between what the city's purchase offer is for ($320,000) and what it must pay to secure a willing seller. The relocation and re- establishment costs are moving costs and the costs associated with providing a comparable location to re- establish the business. Hamiltons will find a location, handle the relocation and remove themselves from their current spot. 19 South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (2) continued... Upon a motion by Mr. Downes, seconded by Mr. Alford, the Commission approved the Purchase Agreement with Hamilton Body Shop and Richard C. Hamilton in the amount of $950,000 with the clarifying language from their attorney. Mr. Davis opposed. (3) Professional services agreement with Fuerbringer Landscaping & Design to provide landscape services at Oliver Industrial Park. Mr. Schalliol noted that Fuerbringer Landscaping & Design has submitted a proposal to provide spring clean -up and additional landscape services for the James Oliver Memorial and for the entry signage areas at the Oliver Industrial Park. This work will complete the work plan for the site that was started last fall as part of the site improvements. The total cost of the work is $3,820. Staff requests approval of this proposal. Upon a motion by Mr. Downes, seconded by Mr. Davis, the Commission approved Professional services agreement with Fuerbringer Landscaping & Design to provide landscape services at Oliver Industrial Park. Mr. Alford opposed. C. West Washington - Chapin Development Area (1) Resolution No. 3035 approving and authorizing the execution of an Addendum to the Master Agency Agreement with the Board of Public Works (Rushton Rehab Project). 20 COMMISSION APPROVED PURCHASE AGREEMENT WITH HAMILTON BODY SHOP AND RICHARD C. HAMILTON IN THE AMOUNT OF $950,000 WITH THE CLARIFYING LANGUAGE FROM THEIR ATTORNEY. COMMISSION APPROVED PROFESSIONAL SERVICES AGREEMENT WITH FUERBRINGER LANDSCAPING & DESIGN TO PROVIDE LANDSCAPE SERVICES AT OLIVER INDUSTRIAL PARK South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) C. West Washington - Chapin Development Area (1) continued... Mr. Relos noted that on October 25, 2011, the Commission entered into an MOU with South Bend Heritage Foundation, for the rehabilitation of the historic Rushton Building, at the northwest corner of W. Washington and William St. Because the Rushton was built with common kitchen and dining areas, and has stood vacant since 2002, extensive remodeling of the building is required. The building will be converted into a 23 unit, low to moderate income senior housing complex. Total development costs are estimated to be $3.4 million. Funding for the project will come from $2.8 million in Low Income Housing Tax Credits and $277,700 of Historic Tax Credits. To fully fund the project, $322,300 in West Washington Chapin Development Area TIF was approved. To facilitate this work, the Commission approved Access and Development Agreements on March 27, 2012. Commission improvements will allow off - street parking for residents and visitors, necessary site utility upgrades, sidewalks and curbs, landscaping and lighting, exterior tuck pointing and cleaning, and new thermo windows. Staff requests approval of Resolution No. 3035. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 3035 approving and authorizing the execution of 21 COMMISSION APPROVED RESOLUTION NO. 3035 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT WITH THE BOARD OF PUBLIC WORKS (RUSHTON REHAB PROJECT). South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) C. West Washington - Chapin Development Area (1) continued... an Addendum to the Master Agency Agreement with the Board of Public Works (Rushton Rehab Project). D. South Side Development Area (1) Resolution No. 3037 approving and authorizing execution of an Amendment to the Addendum to the Master Agency Agreement with the Board of Public Works (Fellows Street Corridor Improvement Project — Supplement #2). Mr. Schalliol noted that in April, 2011, the Commission approved the original addendum for this project which hired Christopher B. Burke Engineering Ltd. staff to help coordinate study of the traffic circulation of Fellows and Ireland and Fellows Street north to Chippewa. The purpose of this infrastructure study was based on the INDOT plan to construct a bridge over the U.S. 20 Bypass and build a new connector roadway on the Fellows Street alignment from Gilmer Park south of the bypass to the intersection of Ireland and Fellows. The state anticipates that roadway to be completed in 2013. The Phase 2 proposal, approved by the Commission in December, 2011, segmented design work into three phases including (1) Design Services, (2) Rule 5 Permit (IDEM) and (3) Bid Services. Over the course of the Phase 2 design work, a major redesign was done, which shifted the project to the east side of Fellows based on drainage and 22 South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) D. South Side Development Area (1) continued... construction challenges presented with trying to center the roadway in the existing corridor. After a cost - benefit review of the project was done, the design decision was made to shift the corridor to the east. The project design had reached a point of 60% plans and the change allowed for the reuse of some of the materials but also created new opportunities for drainage and storm water master planning and utility routing that did not exist with the prior design. The Addendum to the Master Agency Agreement will allow Christopher B. Burke Engineering Ltd. to continue design work related to Phase 2 of the project design services for improvements and connectivity of Fellows Street north or Ireland Road to Chippewa Avenue. Staff recommends approval of Resolution No. 3037. Mr. Schalliol noted that the next major professional service associated with this project will be right -of -way acquisition services, anticipated to be presented to the Commission in a few weeks. Mr. Downes asked what the results were for the feasibility study for Erskine Park Golf Club. Mr. Schalliol noted that the study addressed drainage issues from the Chippewa sewer overflow network on the north side of the golf course. Currently, the water coming off the Fellows St. area and from the O'Brien Park area goes into a combined sewer. With the road realignment the water is stopped 23 South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) D. South Side Development Area (1) continued... before it gets into that network. The study looked at the entire area and created a starting point for an area wide master plan. Mr. Davis asked whether the acquisitions that were taken to this point were by the State rather than the City. Mr. Schalliol responded that the City will do a large number of acquisitions along the Fellows St. corridor. The State's project ends at the traffic signal post on the north side of the streets. Mr. Varner asked if there will be takings of entire properties, as opposed to only right -of- way. Mr. Schalliol responded that the city will take entire properties. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3037 approving and authorizing execution of an Amendment to the Addendum to the Master Agency Agreement with the Board of Public Works (Fellows Street Corridor Improvement Project Supplement #2). E. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. F. Douglas Road Economic Development Area (1) Resolution No. 3038 approving and authorizing the execution of an amendment to the Addendum to the 24 COMMISSION APPROVED RESOLUTION NO. 3037 APPROVING AND AUTHORIZING EXECUTION OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT WITH THE BOARD OF PUBLIC WORKS (FELLOWS STREET CORRIDOR IMPROVEMENT PROJECT SUPPLEMENT #2). THERE WAS NO BUSINESS IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) F. Douglas Road Economic Development Area (1) continued... Master Agency Agreement with the Board of Public Works (SR 23 and Douglas Added Right Turn Lane — Supplement #1). Mr. Schalliol noted the purpose of this project is to add a dedicated right turn lane for north bound traffic that is turning east onto Douglas Road from SR 23. At the time the city was constructing the Douglas Road project, project budgets prevented the city from completing this element of the project. The city did, however, at that time obtain the right -of -way needed. Since the project was completed, Horizon Bank has built on the southeast corner, adjacent to the project site. Abonmarche has made field observations and plan revisions based on the bank's placement. This proposal will provide all of the right of way documents and acquisition services necessary to acquire the property from Horizon Bank to allow for this project to move forward. The Abonmarche proposal is in the amount of $5,000. Staff also requests a budget provision of $25,000 to allow for the property acquisition from the bank. The engineer's estimate for this project is roughly $150,000. Mr. Downes asked if this will end up costing more than if we had been able to acquire it sooner. Mr. Schalliol stated that it will end up costing the city less due to current construction costs. 25 South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) F. Douglas Road Economic Development Area (1) continued... Ms. Jones noted that there was no money in the TIF at that time. She =asked if the right - of -way area is being expanded. Mr. Schalliol responded that it is. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 3038 approving and authorizing the execution of an amendment to the Addendum to the Master Agency Agreement with the Board of Public Works (ST 23 and Douglas Added Right Turn Lane — Supplement # 1) in the amount of $30,000. G. Ratification of Services Contracts COMMISSION APPROVED RESOLUTION NO. 3038 APPROVING AND AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE ADDENDUM TO THE MASTER AGENCY AGREEMENT WITH THE BOARD OF PUBLIC WORKS (ST 23 AND DOUGLAS ADDED RIGHT TURN LANE - SUPPLEMENT # 1) IN THE AMOUNT OF $30,000. 26 Commission Role in Service Contract Staff Transaction Contractor Provided Amount Member 1502 Kendall Acquisition Michaels Appraisal Appraisal $425 Relos Services 1502 Kendall Acquisition Witt Appraisal Appraisal $400 Relos Services 24505 Cleveland Acquisition Meridian Title Title work $100 Relos Road Corp 802 S. Lafayette (4 Acquisition Meridian Title Title work $300 Relos parcels) Corp 910 S. Lafayette (2 Acquisition Meridian Title Title work $200 Relos parcels) Corp 917 S. Lafayette (5 Acquisition Meridian Title Title work $200 Relos parcels) Corp 26 South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) G. Ratification of Services Contracts continued... 822 S. Lafayette Acquisition Meridian Title Title work $200 Relos (Dew Drop Inn, 4 June 1, 2012 Corp Lot Market through October 31, parcels) 2012 The Public Education 121 S. St. Joseph St. Surface SE corner Lafayette Disposition Michaels Appraisal Appraisal $1,370 Relos & Western (Gates Services Lot) 402 S Lafayette Disposition R.E. Pitts & Assoc. Appraisal $2,205 Relos (Gates lot, Lafayette & Western) 728 -730 E. Sample Acquisition Michaels Appraisal Appraisal $2,000 Relos Services 728 -730 E. Sample Acquisition R.E. Pitts & Assoc. Appraisal $2,160 Relos Cleveland Rd west Disposition Michaels Appraisal Appraisal $1,250 Relos of bypass Services Cleveland Rd west Disposition R.E. Pitts & Assoc. Appraisal $1,755 Relos of bypass 802 & 822 S. Acquisition Danch Hamer & ALTA 5,500 Schalliol Lafayette Associates Surveys Upon a motion by Mr. Downes, seconded by Mr, Davis and unanimously carried, the Commission ratified the services contracts approved by staff since the May 8 meeting. H. Ratification of Temporary Use Agreements COMMISSION RATIFIED THE SERVICES CONTRACTS APPROVED BY STAFF SINCE THE MAY 8 MEETING Use/Agency Lot Event Dates of Use The Urban Garden 1025 Bendik Dr., Vacant Open -Air Farmer's June 1, 2012 Market Lot Market through October 31, 2012 The Public Education 121 S. St. Joseph St. Surface Our Towne Truck Pull September 29, 2012 Foundation, Inc. Parking Lot Fundraising event 8:00 am to 6:00 pm 27 South Bend Redevelopment Commission Regular Meeting —May 31, 2012 6. NEW BUSINESS (CONT.) H. Ratification of Temporary Use Agreements continued... Upon a motion by Mr. Downes, seconded by Mr. Davis and unanimously carried, the Commission ratified the Temporary Use Agreements approved by staff since the May 8, meeting. Mr. Davis asked whether the Commission abides by the Council's minority and women's business ordinance related to how contracts are bid out and awarded. Mr. Inks answered that he did not recall any in -house discussion about how the items on the lists relate to the ordinance. The appraisers used are all MAI certified appraisers; top level certified in the State of Indiana. They are used because it's not unusual for the City of end up in court on an acquisition of property. Mr. Downes stated that he believes some effort ought to be made to see if there are other qualified appraisers in the area. Mr. Davis noted to Ms. Jones that when we are ready to take votes there is quick action to motion without opportunity to discuss items. He needs a proper understanding of orders. Ms. Jones responded that after the staff report is given, she can pause for questions; there can also be discussion following the motion and second. Mr. Meteiver said that from a parliamentary procedure standpoint, it is preferable to have a motion and second on the table before an item is discussed. There is a staff report presented, and then a motion to approve whatever the staff report is requesting and a second. That then sets the stage for the discussion that occurs concerning that particular motion and second. He suggested Ms. 28 COMMISSION RATIFIED THE TEMPORARY USE AGREEMENTS APPROVED BY STAFF SINCE THE MAY 8, MEETING South Bend Redevelopment Commission Regular Meeting —May 31, 2012 Jones inquire at that point whether there are any 6. NEW BUSINESS (CONT.) H. Ratification of Temporary Use Agreements continued... questions. Ms. Jones responded that she often does, but will make a point of it and will speak louder. 7. PROGRESS REPORTS There were no Progress Reports 8. NEXT COMMISSION MEETING PROGRESS REPORTS The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Thursday, June 14, 2012, at 9:30 a.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission the meeting was adjourned at 11:03 a.m. Donald E. Inks, Director 29