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HomeMy WebLinkAbout2 MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING June 28, 2012 9:30 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Dr. David Varner, Vice President (part of meeting) Mr. Donald Alford, Secretary Mr. Greg Downes Mr. Henry Davis (part of meeting) Mr. John Stancati Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Scott Ford, Executive Director Mr. Don Inks, Director Mr. David Relos, Economic Development Specialist Ms. Beth Leonard Inks, Director, Admin. Finance, Econ. Dev. Ms. Debrah Jennings, Property Manager, Econ. Dev. Ms. Tamara Nicholl- Smith, Business Dev., Econ Dev. Ms. Patti Lesniewicz, Economic Development Others Present: Ms. Aladean DeRose, South Bend Legal Department Mr. Aaron Perri, Downtown South Bend, Inc. Mr. Adam Detwiler 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, June 14, 2012. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Thursday, June 14, 2012. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF THURSDAY, JUNE 14, 2012. Redevelopment Commission Claims submitted June 28, 2012 for approval. 324 AIRPORT AREA Jerome E. Michaels, MAI 1,250.00 Cleveland Rd. South Bend Water Works 100.96 Sprinkler South Bend Redevelopment Commission Regular Meeting —June 28, 2012 3. APPROVAL OF CLAIMS (CONT) 324 AIRPORT AREA CB Richard Ellis/Bradley C & E Excavating Tri County News Big C Lumber Abonmarche Dakota Worldwide Corp. Fuerbringer Landscaping Jackson Services Smalley Construction Inc & David J Clark L.L Geans Construction Co. DLZ South Bend Tribune 568.71 LaSalle Hotel Managements 271,144.40 Mayflower Blvd 100.77 Notice to Bidders 427.64 329 S Lafayette N.W. Corner 4,113.00 Mayflower Bridge over ITR/Nimtz 68,653.44 Parkway Multi -use Path 3,250.00 Market Analysis Grocery Store 1033 N 148.52 Bendix Dr or 425 S Mich St. 3,820.00 Oliver Plow 20,672.00 Demolition, Environ Remediation, & Site 420 FUND TIF DISTRICT -SBCDA GENERAL Jerome E. Michaels, MAI Ampco System Parking NIPSCO Wightman Petrie South Bend Water Works Diamond Environmental Services, Inc 422 TIF DISTRICT WEST WASHINGTON Sopko, Nussbaum, Inabnit & Kaczmarek 426 CENTRAL MEDICAL The Troyer Group Restoration of Former EMI Bldg 94,000.00 Ignition Pk So Demolitions, PH II 68,653.44 Voorde Park Improvements 9,000.00 South Bend Olive Road Basin 148.52 Notice to Bidders 420 FUND TIF DISTRICT -SBCDA GENERAL Jerome E. Michaels, MAI Ampco System Parking NIPSCO Wightman Petrie South Bend Water Works Diamond Environmental Services, Inc 422 TIF DISTRICT WEST WASHINGTON Sopko, Nussbaum, Inabnit & Kaczmarek 426 CENTRAL MEDICAL The Troyer Group Insulation in Basement 159.25 Legal Services 3,577.50 SB- Fagade Studies Skyway Memorial, B Warner Bank & MarMain Ph II 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA #1 South Bend Tribune 64.19 Michael C. Machlan, PE 120.00 Tri County News 64.55 Christopher B. Burke Engineering, LLC 456.00 Lawson - Fisher Associates P.C. 49,563.17 Christopher B. Burke Engineering, LLC 85,538.92 2 Notice To bidders Main St / Lafayette Blvd Connector Notice To bidders High & Hawbaker Sidewalk S. Main to Lafayette Survey Fellows St Improvements Ph II NW Corner of Colfax Ave & Hill St. / 5,270.00 Gates lot Lafayette & Western 1,836.98 St Joseph St & 225 Main St. Surface 2,129.34 329 S Lafayette Blvd 1,992.50 Harmon Glass Site Improvements 37.87 325 S Lafayette Blvd 18,780.00 Removal of floor Tile, Pipe and Boiler Insulation in Basement 159.25 Legal Services 3,577.50 SB- Fagade Studies Skyway Memorial, B Warner Bank & MarMain Ph II 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA #1 South Bend Tribune 64.19 Michael C. Machlan, PE 120.00 Tri County News 64.55 Christopher B. Burke Engineering, LLC 456.00 Lawson - Fisher Associates P.C. 49,563.17 Christopher B. Burke Engineering, LLC 85,538.92 2 Notice To bidders Main St / Lafayette Blvd Connector Notice To bidders High & Hawbaker Sidewalk S. Main to Lafayette Survey Fellows St Improvements Ph II South Bend Redevelopment Commission Regular Meeting —June 28, 2012 3. APPROVAL OF CLAIMS (CONT.) 433 REDEVELOPMENT ADMINISTRATION GENERAL Faegre Baker Daniels 1,998.00 Legal Services 435 FUND DOUGLAS ROAD Abonmarche 1,900.00 SR 23 and Douglas - Added Right Turn Lane 650,737.71 Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved the Claims submitted June 28, 2012, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business 6. NEW BUSINESS Ms. Jones asked that item 6.E.(1) be moved to the top of New Business and then tabled. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved moving item 6E (1) to the top of New Business. E. South Side Development Area (1) Resolution No. 3051 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement with the Board of Public Works (Fellows Street Corridor Improvement Project — Supplement #4). 3 COMMISSION APPROVED THE CLAIMS SUBMITTED JUNE 28, 2012, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting —June 28, 2012 6. NEW BUSINESS (CONT.) E. South Side Development Area (1) continued... Upon a motion by Mr. Downes, seconded by COMMISSION TABLED ITEM 6E (1) Mr. Alford and unanimously carried, the Commission tabled item 6E (1) A. Public Hearing (1) Public Hearing on Resolution No. 3036 confirming a resolution amending the Development Plan for the South Bend Central Development Area and adding one or more parcels to the List of Parcels to be Acquired (331 -335 S. Main, Gates Sales Lot). Mr. Relos 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 Main Street and Western Avenue and are part of the property acquisition from GMS Realty (Gates). On February 21, 2012, the Area Plan Commission approved its Resolution No. 225 -12 determining that the Declaratory Resolution and the Plan Amendment conform to the plan of development for the city. On April 23, 2012, the South Bend Common Council approved its Resolution No. 4173 -12 approving the actions of the Area Plan Commission and determining that the Declaratory Resolution and the Plan 4 South Bend Redevelopment Commission Regular Meeting —June 28, 2012 6. NEW BUSINESS (CONT.) A. Public Hearings (1) continued... Amendment conform to the plan of development for the city and approving, ratifying and confirming the Declaratory Resolution and the Plan Amendment. Staff requests approval of Confirming Resolution No. 3036. Mr. Davis joined the meeting at this time. Mr. Inks asked that the following items from the public hearing file be entered into the record: (1) a copy of the notice of the hearing, (2) a copy of Resolution No. 3036, (3) a copy of Declaratory Resolution 3006, (4) a copy of the South Bend Common Council Resolution No. 4173 -12, (5) a copy of the Area Plan Commission Resolution No. 225 -12, (6) affidavits from the South Bend Tribune and the Tri- County News that the notice of hearing was published in those newspapers on June 15, 2012, and (7) a statement by Mr. Schalliol that on June 13, 2012, effected property owners and registered neighborhood associations were sent notice of the public hearing. The mail was checked prior to the meeting and as of 9:30 a.m. this morning, there were no written remonstrances relating to'Resolution No. 3036. Ms. Jones opened the public hearing for PUBLIC HEARING ON RESOLUTION No. 3036 anyone who wished to speak for or against Resolution No. 3036. There was no one who wished to speak. Ms. Jones closed the public hearing for whatever action the Commission wished to take 5 South Bend Redevelopment Commission Regular Meeting —June 28, 2012 6. NEW BUSINESS (CONT.) A. Public Hearings (2) Consideration of Resolution No. 3036. Upon a motion by Mr. Downes, seconded by Mr. Alford, the Commission approved, on a vote of four to one, Resolution No. 3036 confirming a resolution amending the Development Plan for the South Bend Central Development Area and adding one or more parcels to the List of Parcels to be Acquired. Mr. Davis was opposed. (3) Public Hearing on Resolution No. 3041, a Supplemental Appropriation Resolution of the South Bend Redevelopment District. Ms. Leonard Inks noted that Resolution No. 3041 will appropriate an additional $822,500 in the South Bend Central TIF district. The funds were received because the city paid off an old bond in early 2012. That payoff then released the debt service funds which were then put back into the TIF fund. The funds can now be appropriated. Of the $822,500, $529,649 will be used for debt service on the refinanced bond. That is necessary because when the cash was physically moved, the amortization schedule was recalculated and staff did not notice. The city still needs to pay the full amount. An additional $292,000 will remain from the $822,500 and will be added to the development opportunity reserve fund for a total in that account of $457,000. Mr. Inks noted for the record that the public hearing file is complete and contains a copy of Resolution No. 3040, determining to make the appropriation and setting the public el COMMISSION APPROVED RESOLUTION NO. 3036 CONFIRMING A RESOLUTION AMENDING THE DEVELOPMENT PLAN FOR THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ADDING ONE OR MORE PARCELS TO THE LIST OF PARCELS TO BE ACQUIRED (331 -335 S. MAIN, GATES SALES LOT). South Bend Redevelopment Commission Regular Meeting —June 28, 2012 6. NEW BUSINESS (CONT.) A. Public Hearings (3) continued... hearing on Resolution No. 3041, a copy of notice of hearing, a copy of Resolution No. 3041 the subject of the public hearing, and affidavits from the South Bend Tribune and Tri- County News that the notice of hearing was published in those newspapers on June 15, 2012. Ms. Jones opened the public hearing for anyone who wished to speak for or against Resolution No. 3041. There was no one who wished to speak. Ms. Jones closed the public hearing for whatever action the Commission wished to take. (4) Consideration of Resolution No. 3041. PUBLIC HEARING ON RESOLUTION NO. 3041 Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No. 3041 Mr. Alford and unanimously carried, the A SUPPLEMENTAL APPROPRIATION RESOLUTION Commission approved Resolution No. 3041 a OF THE SOUTH BEND REDEVELOPMENT DISTRICT. Supplemental Appropriation Resolution of the South Bend Redevelopment District. B. South Bend Central Development Area (1) Resolution No. 3048 approving and authorizing the execution of an Addendum to the Master Agency Agreement with the Board of Public Works (Skyway Building Window Replacement). Mr. Inks asked that item 6.13(1) be tabled. Upon a motion by Mr. Downes, seconded by COMMISSION TABLED ITEM 6.B.(1) Mr. Alford and unanimously carried, the Commission tabled item 6.B.(1) 7 South Bend Redevelopment Commission Regular Meeting —June 28, 2012 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area Mr. Varner joined the meeting at this time. (2) Staff report on Downtown Riverfront District implementation. Ms. Nicholl -Smith reminded the Commission that the intent of the Downtown Riverfront District ordinance is to stimulate further economic development in the downtown by providing a recruitment tool to encourage quality eating establishments, entertainment, and cultural venues to locate within 1,500 feet of the river by making available lower cost, non - transferable, 3 -way liquor licenses that are not subject to the statewide quota. State Code 7.1- 3 -20 -16 allows for the creation of a Municipal Riverfront Development Area to be declared in blighted locations within 1,500 feet from a river's edge. The ordinance is in line with South Bend's desire to cultivate its river as an economic asset. Through its Resolution No. 4163 -12, adopted on March 26, 2012, the South Bend Common Council established a Municipal Riverfront District. South Bend joins 22 Indiana cities and towns which have already designated a municipal riverfront district, resulting in the issuance of 130 riverfront licenses and stimulating economic development in those cities. Passing of the ordinance declaring the district was only the first step in being able to offer Municipal Riverfront Development District liquor licenses. The next step is for the Commission to approve the local process by South Bend Redevelopment Commission Regular Meeting —June 28, 2012 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... which these licenses will be granted. The key component of the local process is to provide a letter of support from the Mayor. The process before the Commission today is the process for securing the approval letter from the Mayor. The applicant completes the Riverfront License Application and submits it to Downtown South Bend along with a copy of their completed ATC application for a new or transfer permit. A five- person review committee will review the application and schedule a public meeting with the applicant. Following that meeting, the committee make a recommendation to either approve or deny. An approved applicant will enter into a written commitment/contract with the city to comply with any local rules and conditions that the city places on the operation. Full contract execution is ultimately contingent on Mayoral approval. The mayor will review the recommendation of the Riverfront License Review Committee. If the mayor also approves, the applicant will be provided with the approval letter from the Mayor which is needed for the ATC application. The five- member Riverfront License Application Review Committee will consist of the Economic Development Director or its designee, a City Council designee, a member of the Redevelopment Commission, a representative of Downtown South Bend, Inc., and a mayoral designee. Staff recommends approval of the process as drafted. 0 South Bend Redevelopment Commission Regular Meeting —June 28, 2012 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... Mr. Downes asked how long the process would take from application to approval. Ms. DeRose responded that once an application for a liquor permit is requested with the ATC, a state agency, that application will take at least 75 days to get on the local alcoholic beverage board's agenda. The local five -step process will run concurrently with the 75 -day time frame. Mr. Davis asked for an explanation of why this is a tool or incentive rather than an alcohol experience to entice development. Ms. Nicholl -Smith responded that the staff will require an explanation of why the establishment is focused on the dining or cultural experience rather than a purely alcohol consumption experience. Ms. Nicholl -Smith noted that the cost savings in obtaining this liquor license will enable the establishment owner to invest more on the appearance of the establishment. Ms. DeRose pointed out that not only will there be a savings, but it is very difficult to get one of the regular 3 -way permits. They can only be had when one of the current holders sells its permit. Mr. Davis noted that the Council has been speaking about the budget and assessed value in the City of South Bend. There's strong support for development. How does the riverfront development district pull in new dollars for the City of South Bend? Ms. Nicholl -Smith responded that because of the potential for the riverfront district, she's 10 South Bend Redevelopment Commission Regular Meeting —June 28, 2012 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... already been receiving calls expressing interest in locating in downtown. Mr. Davis asked how many licenses will be available. Ms. Nicholl -Smith responded that there is no limit; it's only a matter of meeting the requirements. Mr. Davis brought up recent public safety and nuisance problems at downtown establishments with liquor licenses and asked how we propose to keep that from increasing. Ms. DeRose responded that the problem has been issues of overcrowding, noise and the time of evening /morning every single week. Each individual establishment's case is different. Mr. Davis asked how extensive a "change in business plan" must be to prevent permit renewal. Ms. Nicholl -Smith responded that there must be a "material" change, connoting the notion of a radical or significant change. Ms. DeRose added that this criterion was added due to a real life event, an alcoholic permit applicant had submitted a business plan as a salad specialty restaurant but later became a full scale student bar. This provision will prevent such occurrences. Ms. Jones commented that the economic impact is where staff will address the issue on a negative effect. Upon a motion by Mr. Downes, seconded by Mr. Davis and unanimously carried, the 11 COMMISSION APPROVED THE DOWNTOWN RIVERFRONT MUNICIPAL DEVELOPMENT DISTRICT LOCAL PROCESS, AS PRESENTED South Bend Redevelopment Commission Regular Meeting —June 28, 2012 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... Commission approved the Downtown Riverfront Municipal Development District local process, as presented. C. Airport Economic Development Area (1) Resolution No. 3052 approving and authorizing the execution of an Addendum to the Master Agency Agreement with the Board of Public Works (Union Station Technology Center, MOU 1 Budget). Mr. Relos noted that in March 2012, the Redevelopment Commission entered into a binding Memorandum of Understanding ( "MOU ") with the Union Station Technology Center ( "USTC ") team. The MOU contemplated energy service upgrades to the USTC that would be aided by the use of $2.2 million of Airport Economic Development area TIF funds. The TIF funds would pay for conduit and power grid extensions from the AEP substation on Main Street to the USTC as well as the purchase of power equipment to help provide the power and other resources to the center. This resolution and addendum to the agency agreement authorize the Board of Public Works to be the Commission's agent in contracting for infrastructure improvements and equipment for the first Phase of the USTC project. The total budget for all improvements, based upon the MOU, is $2.2 million dollars. A scope of work related to this budget is being developed and bidding 12 South Bend Redevelopment Commission Regular Meeting —June 28, 2012 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... for the equipment purchase and installation will be working its way through the Board of Public Works in July. Work is presently underway on the conduit extension component of this work from the substation north to South Street and in to the USTC. Staff requests favorable approval of Resolution No. 3052. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3052 approving and authorizing the execution of an Addendum to the Master Agency Agreement with the Board of Public Works (Union Station Technology Center, MOU 1 Budget). D. West Washington - Chapin Development Area There was no business in the West Washington - Chapin Development Area. F. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. G. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. 13 COMMISSION APPROVED RESOLUTION NO. 3052 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT WITH THE BOARD OF PUBLIC WORKS (UNION STATION TECHNOLOGY CENTER, MOU 1 BUDGET). South Bend Redevelopment Commission Regular Meeting —June 28, 2012 6. NEW BUSINESS (CONT.) H. Ratification of Services Contracts Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission ratified the Services Contracts with Jerome Michaels and R E Pitts for appraisal of the northwest corner of Colfax and Hill Streets for fees of $4,000 and $3,150 respectively. I. Ratification of Temporary Use Agreements Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission ratified the Temporary Use Agreements for use of the Wayne St. and Leighton Plaza parking garages by the College Football Hall of Fame from July 19- 21, 2012. 7. PROGRESS REPORTS Mr. Inks noted a Tuesday, June 26, 2012, meeting with Mavcon relating to the LaSalle Hotel building. Mavcon's contract expires at the end of this month. Mavcon has indicated they are very close to making a decision and were prepared to make a decision a few days ago. Staff sent them additional information on property tax abatement. Mavcon has concerns about the assessed value of the property. Staff is in the process of working with Mavcon and the Assessor's Office and is requesting additional time to resolve the issue. Staff will be bringing to the July 12 Commission meeting a request for a 30 -day extension. Mr. Varner asked how close Mavcon was to a dollar match. Mr. Inks stated that staff asked for the proformas so the gap can be identified. Those are expected at the end of this week or early next week. Ms. Jones asked if Mavcon made any application for historic tax credits. Mr. Inks responded that it did. 14 COMMISSION RATIFIED THE SERVICES CONTRACTS WITH JEROME MICHAELS AND R E PITTS FOR APPRAISAL OF THE NORTHWEST CORNER OF COLFAX AND HILL STREETS FOR FEES OF $4,000 AND $3,150 RESPECTIVELY COMMISSION RATIFIED THE TEMPORARY USE AGREEMENTS FOR USE OF THE WAYNE ST. AND LEIGHTON PLAZA PARKING GARAGES BY THE COLLEGE FOOTBALL HALL OF FAME FROM JULY 19-21,2012 South Bend Redevelopment Commission Regular Meeting –June 28, 2012 7. PROGRESS REPORTS (CONT.) Mr. Downes asked whether it is essentially a gap in financing. Mr. Inks responded that it is. Mr. Davis asked what the current taxes are on the property. Mr. Inks stated that it's tax exempt right now and the assessed value is fairly low. This would be a $12,000,000 project, and, ordinarily, on a new construction project assessed value would increase by 85% to 100% of the construction cost. Rehabs are significantly lower. In this case the assessed value of the building is already so low that it's likely the assessed value would increase by more than usual. That is creating issues with financing. Mr. Davis asked what the building was assessed at right now. Mr. Inks responded with uncertainty that it's probably a million or less. Mr. Varner asked if staff has seen what Mavcon has seen. Mr. Inks responded that it has. Staff has run the property tax payment schedules and estimates the annual taxes to be around $225,000. Mr. Varner wondered if that would hold up the project. Mr. Relos noted that Mavon is looking at turning it into 60 apartments renting at market rate. Mr. Varner thought staff might have the power to negotiate, not necessarily a tax abatement, but an incremental phase -in so that they could build the project and grow into the taxes. Mr. Inks responded that that is why staff asked for the pro forma — to see what it might take to make it work. Mr. Downes stated that Mavcon must feel good about the market demand. Mr. Relos responded that they do. Mavcon has been down here several times trying to get good numbers. Mr. Downes stated, too, that Mavcon has a good reputation. 15 South Bend Redevelopment Commission Regular Meeting —June 28, 2012 7. PROGRESS REPORTS (CONT.) Mr. Relos noted that staff has been to Kalamazoo to see their project(s) and has been very impressed. Mr. Davis noted that he's still looking for updated maps concerning the City of South Bend traffic patterns; new construction. Mr. Relos noted that Mr. Schalliol is aware of this but not in town this week. He will work on it when he returns. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is scheduled for Thursday, July 12, 2012 at 9:30 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Alford made a motion that the meeting be adjourned. Mr. Varner seconded the motion and the meeting was adjourned at 10:20 a.m. Donald E. Inks, Director 16 NEXT COMMISSION MEETING ADJOURNMENT Marcia I. Jones, President