HomeMy WebLinkAbout06-28-12 Redevelopment Commission Minutes SOUTH 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. COMMISSION APPROVED THE MINUTES OF THE
Alford and unanimously carried, the Commission REGULAR MEETING OF THURSDAY,JUNE 14,
approved the Minutes of the Regular Meeting of 2012.
Thursday, June 14, 2012.
3. APPROVAL OF CLAIMS
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 568.71 LaSalle Hotel Managements
C & E Excavating 271,144.40 Mayflower Blvd
Tri County News 100.77 Notice to Bidders
Big C Lumber 427.64 329 S Lafayette N.W. Corner
Abonmarche 4,113.00 Mayflower Bridge over ITR/Nimtz
Parkway Multi-use Path
Dakota Worldwide Corp. 3,250.00 Market Analysis Grocery Store 1033 N
Bendix Dr or 425 S Mich St.
Fuerbringer Landscaping 3,820.00 Oliver Plow
Jackson Services 20,672.00 Demolition, Environ Remediation, & Site
Restoration of Former EMI Bldg
Smalley Construction Inc & David J Clark 94,000.00 Ignition Pk So Demolitions, PH 11
LL Geans Construction Co. 68,653.44 Voorde Park Improvements
DLZ 9,000.00 South Bend Olive Road Basin
South Bend Tribune 148.52 Notice to Bidders
420 FUND TIF DISTRICT-SBCDA GENERAL
Jerome E. Michaels, MAI NW Corner of Colfax Ave & Hill St. /
5,270.00 Gates lot Lafayette & Western
Ampco System Parking 1,836.98 St Joseph St& 225 Main St. Surface
NIPSCO 2,129.34 329 S Lafayette Blvd
Wightman Petrie 1,992.50 Harmon Glass Site Improvements
South Bend Water Works 37.87 325 S Lafayette Blvd
Diamond Environmental Services, Inc. 18,780.00 Removal of floor Tile, Pipe and Boiler
Insulation in Basement
422 TIF DISTRICT WEST WASHINGTON
Sopko, Nussbaum, Inabnit& Kaczmarek 159.25 Legal Services
426 CENTRAL MEDICAL
The Troyer Group 3,577.50 SB-Facade Studies Skyway Memorial, B
Warner Bank& MarMain Ph II
430 FUND SOUTH SIDE DEVELOPMENT TIF AREA#1
South Bend Tribune 64.19 Notice To bidders
Michael C. Machlan, PE 120.00 Main St/Lafayette Blvd Connector
Tri County News 64.55 Notice To bidders
Christopher B. Burke Engineering, LLC 456.00 High& Hawbaker Sidewalk
Lawson-Fisher Associates P.C. 49,563.17 S. Main to Lafayette Survey
Christopher B. Burke Engineering, LLC 85,538.92 Fellows St Improvements Ph II
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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 COMMISSION APPROVED THE CLAIMS
and unanimously carried, the Commission approved the SUBMITTED JUNE 28,2012,AND ORDERED THE
Claims submitted June 28, 2012, and ordered checks to CHECKS TO BE RELEASED
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
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).
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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
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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. 3 03 6.
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
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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 COMMISSION APPROVED RESOLUTION No.3036
Mr. Alford, the Commission approved, on a CONFIRMING A RESOLUTION AMENDING THE
vote of four to one, Resolution No. 3036 DEVELOPMENT PLAN FOR THE SOUTH BEND
CENTRAL DEVELOPMENT AREA AND ADDING
confirming a resolution amending the ONE OR MORE PARCELS TO THE LIST OF PARCELS
Development Plan for the South Bend TO BE ACQUIRED(331-335 S.MAIN,GATES
Central Development Area and adding one or SALES LOT).
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
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South Bend Redevelopment Commission
Regular Meeting—June 28, 2012
6. NEW BUSINESS (CONT.)
A. Public Hearings
(3) continued...
hearing on Resolution No. 3 04 1, 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 PUBLIC HEARING ON RESOLUTION No.3041
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.
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)
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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
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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.
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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
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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 COMMISSION APPROVED THE DOWNTOWN
Mr. Davis and unanimously carried, the RivERERONT MUNICIPAL DEVELOPMENT
DISTRICT LOCAL PROCESS,AS PRESENTED
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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
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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 COMMISSION APPROVED RESOLUTION No.3052
Mr. Varner and unanimously carried, the APPROVING AND AUTHORIZING THE EXECUTION
Commission approved Resolution No. 3052 OF AN ADDENDUM TO THE MASTER AGENCY
AGREEMENT WITH THE BOARD OF PUBLIC
approving and authorizing the execution of WORKS(UNION STATION TECHNOLOGY
an Addendum to the Master Agency CENTER,MOU 1 BUDGET).
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.
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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. COMMISSION RATIFIED THE SERVICES
Downes and unanimously carried, the Commission CONTRACTS WITH JEROME MICHAELS AND RE
ratified the Services Contracts with Jerome PITTS FOR APPRAISAL OF THE NORTHWEST
CORNER OF COLFAX AND HILL STREETS FOR
Michaels and R E Pitts for appraisal of the FEES OF$4,000 AND$3,150 RESPECTIVELY
northwest corner of Colfax and Hill Streets for fees
of$4,000 and $3,150 respectively.
L Ratification of Temporary Use Agreements
Upon a motion by Mr. Varner, seconded by Mr. COMMISSION RATIFIED THE TEMPORARY USE
Downes and unanimously carried, the Commission AGREEMENTS FOR USE OF THE WAYNE ST.AND
ratified the Temporary Use Agreements for use of LEIGHTON PLAZA PARKING GARAGES BY THE
COLLEGE FOOTBALL HALL OF FAME FROM JULY
the Wayne St. and Leighton Plaza parking garages 19-21,2012
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.
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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.
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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 NEXT COMMISSION MEETING
scheduled for Thursday, July 12, 2012 at 9:30 a.m.
9. ADJOURNMENT
There being no further business to come before the ADJOURNMENT
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.
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