HomeMy WebLinkAbout05-31-12 Redevelopment Commission Minutes SOUTH 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. COMMISSION APPROVED THE MINUTES OF THE
Davis and unanimously carried, the Commission REGULAR MEETING OF TUESDAY,MAY 8,
approved the Minutes of the Regular Meeting of 2012.
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
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 IA Infrastr. Design
Meridian Title Corporation 554.00 1521 Catalpa St. & 713 W Indiana Ave
Lawson-Fisher Associates PC 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
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South Bend Redevelopment Commission
Regular Meeting—May 31, 2012
3. APPROVAL OF CLAIMS (CONT.)
420 FUND TIF DISTRICT-SBCDA GENERAL
DTSB 20,000.00 Beautification/Business Recruitment
Electrical Installation to repair fountain
Koontz-Wagner Construction Services 626.00 lights &GFI in Pit
Ampco System Parking 1,958.71 St Joseph St&225 Main St. Surface
Open Air Covering at Century Center
Earth Exploration 41409.75 Island Park
Rose Pest Solutions 103.00 LaSalle Hotel Pest Control
Management Fee &Maintenance
CBREJBradley 770.07 LaSalle Hotel
Faegre Baker Daniels 2,335.50 Legal Services
All Phase 24.45 LaSalle Hotel
Meridian Title Corp 317.00 Closing - Sale of Troeger Site
Buxton 1,750.00 SCOUT Retail Matching Subscription
Casteel Construction Corp 435,949.00 Century Center Island Pk Pavilion
C&E Excavating inc. 249,384.96 ACSNA Project Site Improvements
South Bend Tribune 64.19 Notice to bidders
South Bend Water Works 44.56 322 Lafayette Blvd
Michiana Lock&Key Inc 134.00 8 Master PadLock VA Clinic
Wightman Petrie 4,517.50 Erskine Golf Course
Sopko,Nussbaum, In Abnit&Kaczmarek
422 TIF DISTRICT WEST WASHINGTON
Sopko,Nussbaum, Inabnit&Kaczmarek 1,102.50 Legal Services
Gibson-Lewis 144,732.12 Hansel Center Rehabilitation
426 CENTRAL MEDICAL
DLZ Indiana, LLC 7,851.00 Michigan Street
429 TIF FUND NORTHEAST DISTRICT
DLZ 7,320.00 Eddy St. Corridor Concept Study
430 FUND SOUTH SIDE DEVELOPMENT TIF AREA 41
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. THERE WERE NO COMMUNICATIONS
5. OLD BUSINESS
There was no Old Business. THERE WAS NO OLD BUSINESS
6. NEW 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,
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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 COMMISSION APPROVED RESOLUTION No.3040
Mr. Davis and unanimously carried, the SETTING A PUBLIC HEARING ON THE
Commission approved Resolution No. 3040 APPROPRIATION OF SOUTH BEND CENTRAL
DEVELOPMENT AREA TAX INCREMENT
setting a public hearing on the appropriation FINANCING REVENUES FOR THE PAYMENT OF
of South Bend Central Development Area tax CERTAIN OBLIGATIONS AND EXPENSES RELATED
increment financing revenues for the TO THEIR RESPECTIVE ALLOCATION AREAS AND
payment of certain obligations and expenses OTHER RELATED MATTERS.(PUBLIC HEARING TO
related to their respective allocation areas BE HELD 9:30 A.M.,JUNE 28,2012.)
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
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 THE MOTION TO APPROVE RESOLUTION
Resolution No. 3036 and set the public No. 3036 DID NOT RECEIVE SUFFICIENT VOTES
hearing on Resolution No. 3036 for 9:30 TO PASS
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
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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 facade 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
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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 COMMISSION APPROVED THE PROPOSAL FROM
Mr. Alford, the Commission approved the DJ CONSTRUCTION FOR SITE IMPROVEMENTS AT
proposal from DJ Construction for site ACS/VA(WESTERN AVE.VETERANS
improvements at ACS/VA. Mr. Davis ADMINISTRATION CLINIC)
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 THE COMMISSION APPROVED THE
reconsider agenda item 6A(2). Mr. Alford RECONSIDERATION OF ITEM 6A(2).
seconded the motion. The motion carried
with Mr. Davis opposed.
9
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 COMMISSION APPROVED FILING OF RESOLUTION
Mr. Downes, the Commission accepted for No.3036 CONFIRMING RESOLUTION No.3006
filing Resolution No. 3036 confirming AMENDING THE DEVELOPMENT PLAN FOR
SOUTH BEND CENTRAL DEVELOPMENT AREA
Resolution No. 3006 amending the AND SETTING A PUBLIC HEARING FOR 9:30 A.M.,
Development Plan for South Bend Central JUNE 28,2012 ON RESOLUTION No.3036
Development Area and setting a public (ADDING THREE PROPERTIES AT THE NORTHWEST
hearing for 9:30 a.m., June 28, 2012 on CORNER OF MAIN AND WESTERN TO THE LIST OF
Resolution No. 3036. Mr. Davis opposed. PARCELS TO BE ACQUIRED .
(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 facade 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 facade
improvement project. They were well under
10
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 COMMISSION APPROVED THE PROPOSAL FROM
Mr. Varner and unanimously carried, the THE TROYER GROUP FOR THE SCOPE OF
Commission approved the proposal from The SERVICES PROPOSED AND ANOT-TO-EXCEED
AMOUNT OF$7,000.
11
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 COMMISSION APPROVED RESOLUTION No.3039
Mr. Varner, the Commission approved RELATED TO ACQUISITION OF PROPERTY IN THE
Resolution No. 3039 related to acquisition of AIRPORT ECONOMIC DEVELOPMENT(HAMILTON
property in the Airport Economic Develop-
TOWING PROPERTIES.
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
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
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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 COMMISSION APPROVED PURCHASE AGREEMENT
Mr. Alford, the Commission approved the WITH HAMILTON BODY SHOP AND RICHARD C.
Purchase Agreement with Hamilton Body HAMILTON IN THE AMOUNT OF$950,000 WITH
THE CLARIFYING LANGUAGE FROM THEIR
Shop and Richard C. Hamilton in the amount ATTORNEY.
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 COMMISSION APPROVED PROFESSIONAL
Mr. Davis, the Commission approved SERVICES AGREEMENT WITH FUERBRINGER
Professional services agreement with LANDSCAPING&DESIGN TO PROVIDE
LANDSCAPE SERVICES AT OLIVER INDUSTRIAL
Fuerbringer Landscaping & Design to PARK
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
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. 3 03 5.
Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No.3035
Mr. Alford and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION
Commission approved Resolution No. 3035 OF AN ADDENDUM TO THE MASTER AGENCY
AGREEMENT WITH THE BOARD OF PUBLIC
approving and authorizing the execution of WORKS(RUSHTON REHAB PROJECT).
21
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 COMMISSION APPROVED RESOLUTION No.3037
Mr. Varner and unanimously carried, the APPROVING AND AUTHORIZING EXECUTION OF
Commission approved Resolution No. 3037 AN AMENDMENT TO THE ADDENDUM TO THE
MASTER AGENCY AGREEMENT WITH THE
approving and authorizing execution of an BOARD OF PUBLIC WORKS(FELLOWS STREET
Amendment to the Addendum to the Master CORRIDOR IMPROVEMENT PROJECT
Agency Agreement with the Board of Public SUPPLEMENT#2).
Works (Fellows Street Corridor
Improvement Project Supplement#2).
E. Northeast Neighborhood Development Area
There was no business in the Northeast THERE WAS NO BUSINESS IN THE NORTHEAST
Neighborhood Development Area. 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
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 COMMISSION APPROVED RESOLUTION No.3038
Mr. Alford and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION
Commission approved Resolution No. 3038 OF AN AMENDMENT TO THE ADDENDUM TO THE
MASTER AGENCY AGREEMENT WITH THE
approving and authorizing the execution of BOARD OF PUBLIC WORKS (ST 23 AND
an amendment to the Addendum to the DOUGLAS ADDED RIGHT TURN LANE-
Master Agency Agreement with the Board of SUPPLEMENT#1)IN THE AMOUNT OF$30,000.
Public Works (ST 23 and Douglas Added
Right Turn Lane— Supplement#1) in the
amount of$30,000.
G. Ratification of Services Contracts
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 Corp
parcels)
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 Harner& ALTA 5,500 Schalliol
Lafayette Associates Surveys
Upon a motion by Mr. Downes, seconded by Mr. COMMISSION RATIFIED THE SERVICES
Davis and unanimously carried, the Commission CONTRACTS APPROVED BY STAFF SINCE THE
ratified the services contracts approved by staff MAY 8 MEETING
since the May 8 meeting.
H. Ratification of Temporary Use Agreements
Use/Agency Lot Event Dates of Use
The Urban Garden 1025 Bendix 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. COMMISSION RATIFIED THE TEMPORARY USE
Davis and unanimously carried, the Commission AGREEMENTS APPROVED BY STAFF SINCE THE
ratified the Temporary Use Agreements approved MAY 8,MEETING
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.
Jones inquire at that point whether there are any
28
South Bend Redevelopment Commission
Regular Meeting—May 31, 2012
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 PROGRESS REPORTS
8. NEXT COMMISSION MEETING
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.
29