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HomeMy WebLinkAbout2A Minutes 6.13.19 RDC South Be n d Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, IN SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING June 13, 2019 9:30 a.m. 227 West Jefferson Boulevard Presiding: Marcia Jones, President South Bend, Indiana The meeting was called to order at 9:55 a.m. 1. ROLL CALL Members Present: Marcia Jones, President Don Inks, Vice-President Quentin Phillips, Secretary Gavin Ferlic, Commissioner Todd Monk, Commissioner Members Absent: Leslie Wesley, Commissioner Legal Counsel: Sandra Kennedy, Esq. Redevelopment Staff: David Relos, RDC Staff Mary Brazinsky, Board Secretary - Absent Others Present: Daniel Buckenmeyer Chris Dressel Tony Sergio Charlotte Brach Kyle Silveus Zach Hurst See Attendance Records Attached DCI DCI DCI Engineering Engineering Engineering South Bend Redevelopment Commission Regular Meeting – June 13, 2019 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, May 23, 2019 Upon a motion by Commissioner Ferlic, seconded by Secretary Phillips, the motion carried unanimously, the Commission approved the minutes of the regular meeting of Thursday, May 23, 2019. 3. Approval of Claims A. Claims Submitted June 13, 2019 Upon a motion by Vice-President Inks, seconded by Secretary Phillips, the motion carried unanimously, the Commission approved the claims submitted on Thursday, June 13, 2019. 4. Old Business 5. New Business A. Public Hearing Mr. Dressel, Senior Planner Department of Community Investment gave a presentation regarding the TIF District adjustments. In the boundary adjustments he talked about adjusting our existing TIF boundaries for us to fund future priorities and planning initiatives in the new areas that are proposed for addition. The priority projects attached to the changes in the boundaries are infrastructure, community assets and other development projects. There are five TIF districts starting with Douglas Road, River East, River West, West Washington/Chapin and South Side Development Areas. All but Douglas Road are applicable for the conversation. Mr. Dressel outlined the additions and removed areas on the maps. The areas for adjustment fall into a few categories; areas annexed to the city, commercial corridor areas, and parks/community assets. A history of the development area, the location, activities, the goals and objectives were provided for each plan area. The description of the boundary, the statutory findings, acquisition of real property South Bend Redevelopment Commission Regular Meeting – June 13, 2019 and procedure for amendment were provided. All these items are included to meet state requirements. For each district there is an update to the property list, which means, we are looking into the future five to ten years to see what areas are possible development areas. Properties placed on the acquisition list are not being placed there for the City to acquire them without the owner’s approval. There will be no change in the property usage or taxes. If there is a conversation, it would be represented like any other conversation where there would have to be an acceptable agreement between both buyer and seller. There will be no taking of properties. The Redevelopment Commission does not possess the power to condemn properties through eminent domain. A financial impact analysis was prepared by an outside source that provides a view of what the impact is for the taxing districts ahead. A postcard was sent out to every property in the TIF districts. Our team also held several town hall meetings. The City also established a place on their website for this information. A notice was placed in the South Bend Tribune and letters were sent out to every impacted property, even if they had previously received information. We had at least 100 people that called in or stopped in our offices for more information. This process started on April 11, 2019 with a Declatory Resolution which then went to the Area Plan Commission on April 16, 2019 where approval was provided. Common Council approved their Resolution on May 28, 2019 which has brought us to today’s public hearing. We are here at the Redevelopment Commission on June 13, 2019 seeking approval for the Resolutions that are on today’s agenda. Commissioner Ferlic re-confirmed that the Redevelopment Commission does not have condemnation powers, which means, if the Redevelopment Commission approached you regarding your property, there would need to be a negotiation and ultimately if you choose not to sell, the City would not be able to purchase your property. Mr. Dressel proceeded to give the same presentation using maps to the people in attendance that could not fit into the Common Council room. Mr. Buckenmeyer again noted that the Redevelopment Commission does not have condemnation powers. Mr. Relos stated that after Mr. Dressel’s second time presenting to the attendees outside the Common Council room that we were going to start with the agenda. Mr. Relos noted that the notice of public hearing for today was published in the South Bend Tribune on May 31, 2019 and the notice of public hearing went out to the residents in the TIF districts on May 31, 2019. As of yesterday morning, there was one written remonstrance received whose property was not in any property district, so it was placed into each TIF district. We received remonstrances from one property that was in the South Side Development Area, one from West Washington/Chapin Development Area, two from the River East Development Area and six from the River West Development Area. As we open the public hearing section, please limit your comments to three minutes regarding the item at hand. Should you have other questions, we ask that you contact the staff of Community Investment. South Bend Redevelopment Commission Regular Meeting – June 13, 2019 1. Karen Lock - 2202 Miami. If I choose to sell my property, do I reach out to the city first? Mr. Relos answered no, but you can if you choose to. The city has a process through property acquisitions that is mandated by state law. For the record the Redevelopment Commission does not purchase properties with the hopes of renting them. We typically purchase properties that need to be redeveloped. If that is something you want to do, feel free to reach out to us, we will have a discussion and continue from there. Mr. Buckenmeyer explained being on the acquisition list does not mean the city will be reaching out to you to purchase your property, nor does it mean if you offered it for sale that the city would be interested in purchasing it. 2. James Bernay – 1117 Mishawaka Avenue. My property is in the blue area what does that mean; also, I put $7,000 worth of work into the property last year including a new parking lot, is this something I should bother doing? Mr. Relos reiterated that the Redevelopment Commission does not seek out businesses to purchase their properties. We are not equipped to run a businesses. If you own a business and wish to continue to invest in it, we encourage you to do so. Mr. Bernay states that he has had several people calling him in the last year interested in buying his business. If anyone is going to make some money it is going to be him. He still doesn’t understand what the blue area means. Mr. Buckenmeyer recommends that Mr. Bernay reach out to him, so he can further explain the blue area and what Mr. Dressel presented. He would also like to work with him regarding business along Mishawaka Avenue and matching façade grants. They can discuss his business at that time if he wishes. 3. Wendy McMillian – 1110 East State Street. The home next door to hers has been condemned for six months, it is dangerous and has stuff flying off it. She has called repeatedly asking when it will be demolished. I’ve been told it takes a month or two, it has been six. Do you want to own this one because you already own one next door? My second question is if there are a group of homes you want to buy but there are a few hold outs what are you going to do about it. Mr. Relos asked Ms. McMillian to reach out to Community Investment, someone on the planning team and explain what has already been done. They will be able to give her further information about the properties. The Redevelopment Commission statutorily does not have eminent domain powers. 4. Ron Miller – 2521 Mishawaka Avenue. Is there a significance that I received South Bend Redevelopment Commission Regular Meeting – June 13, 2019 two notices on the same property? Mr. Relos stated, yes, some people received two letters because you are being newly included in a development area and also added to an acquisition list, you must be notified per state law. Along Mishawaka Avenue and some of the corridors we added the properties to the acquisition list, so statutorily we must send letters. Ron Miller stated all the properties in the area have had the taxes raised based on the assessed value. Is the city going to pay based on the assessed value? His property went up $12,000. It’s not worth $12,000 more but he will pay taxes on it. Is the city going to pay that price if they go to buy it? Mr. Relos stated statutorily we must have two appraisals done. We take the average of the two and that is our beginning point. I can’t say whether the appraisals will come in higher or lower than your assessed value. Mr. Buckenmeyer stated the Redevelopment Commission can not speak to taxes and county issues. We recommend that you discuss that with the County Assessor’s Office on the 3rd floor. If we have a property negotiation between private property and us, again we look at the two independent appraisals. 5. Marsha Shepherd – 2501 W Orange Street. My mom is in the River West Development Area. Who is the Commonwealth Development/Fat Daddy’s? Mr. Relos stated that is a later agenda item for today regarding a building downtown that was previously called Fat Daddy’s. We are currently on agenda item 5A1. This public hearing is regarding the resolutions for the TIF areas. Commissioner Ferlic noted there is no public hearing portion regarding the Fat Daddy’s agenda item. Marsha Shepherd was asked to make her statement now for the public item. She is wondering what the plan is for Fat Daddy’s. She is talking about 2501 Orange Street. Mr. Relos stated that she is talking about two different areas. Mr. Buckenmeyer asked her to state what area she is asking about regarding development. Marsha Shepherd is considered that it will now be coming commercial area on Orange and Linden. Mr. Relos asked her to reach out to our department and we can sit down and show what is going on in each development. Please give Mr. Dressel your contact information so he can reach out. 6. Susan Nelson owns three properties along Mishawaka Avenue and received six South Bend Redevelopment Commission Regular Meeting – June 13, 2019 letters 2 for each property. I’m missing the big picture. What is a TIF? Why would you want to have acquisition of these properties; I heard someone mention only if it is run down or needed to be improved. I would like an explanation of what they would do with the properties to develop them if they had them. Mr. Dressel stated what we are talking about are the development areas that are different colors on the map shown to everyone earlier. What the maps showed is where the TIF areas are located now and when we change the boundaries of the TIF. What is the advantage? Having properties in the development area allows us to use an additional source of funds (TIF). These funds are set aside from property tax revenues in such a way they can only be used in the development areas vs. property tax funds that can be used everywhere. The advantage of being added to a development area is now we can use this special tool to make good investments. We are not targeting individual parcels on blocks. Susan Nelson asks, what is the disadvantage? Mr. Dressel stated that there is no difference in your tax only how the taxes can be used. President Jones asked if there was anyone else from the public wishing to speak. President Jones closed the public portion of the hearing. President Jones opened the meeting to Commissioners. Commissioner Ferlic thanked Chris Dressel, Dan Buckenmeyer and David Relos. The main point is that Redevelopment Commission does not have condemnation authority and that any acquisition would need to be agreed on by both parties. President Jones noted that some of the questions asked will answer strategy and timelines. Some of the benefits of being in a TIF district are that dollars are spent doing things such as infrastructure and improvements. Streets, sidewalks and parks all are improved with the use of TIF dollars. President Jones stated that she has lived in TIF districts and has benefited from them. 1. Confirming Resolution No. 3485 River West Development Area Mr. Dressel presented Confirming Resolution No. 3485 River West Development Area. South Bend Redevelopment Commission Regular Meeting – June 13, 2019 President Jones opened Resolution No. 3485 to the public. No one from the public stepped forward. President Jones closed the public portion of this hearing. President Jones opened the meeting to Commissioners. Upon a motion by Commissioner Ferlic, seconded by Secretary Phillips, the motion carried unanimously, the Commission approved Confirming Resolution No. 3485 River West Development Area submitted on Thursday, June 13, 2019. 2. Confirming Resolution No. 3486 River East Development Area Mr. Dressel presented Confirming Resolution No. 3486 River East Development Area. President Jones opened Resolution No. 3486 to the public. No one from the public stepped forward. President Jones closed the public portion of this hearing. President Jones opened the meeting to Commissioners. Upon a motion by Commissioner Ferlic, seconded by Vice-President Inks, the motion carried unanimously, the Commission approved Confirming Resolution No. 3486 River East Development Area submitted on Thursday, June 13, 2019. 3. Confirming Resolution No. 3487 South Side Development Area Mr. Dressel presented Confirming Resolution No. 3487 South Side Development Area. President Jones opened Resolution No. 3487 to the public. 1. Managing Broker at PPM Realty at 2955 McKinley and is here on behalf of Delta One Property which owns 112 W Indiana, 114 W Indiana, 1601, 1609 and 1619 Michigan Street where there is the old Bonnie Doone Restaurant was. We are in agreement with the TIF areas. We are battling with BPW on the alley way. 2. Sharon McBride, 415 E Broadway Street, Representative of South Bend Common Council and is in support of Resolution No. 3487 for the South Side. President Jones closed the public portion of this hearing. President Jones opened the meeting to Commissioners. Upon a motion by Commissioner Ferlic, seconded by Secretary Phillips, the motion carried unanimously, the Commission approved Confirming Resolution South Bend Redevelopment Commission Regular Meeting – June 13, 2019 No. 3487 South Side Development Area submitted on Thursday, June 13, 2019. 4. Confirming Resolution No. 3488 West Washington Chapin Development Area Mr. Dressel presented Confirming Resolution No. 3488 West Washington Chapin Development Area. President Jones opened Resolution No. 3488 to the public. No one from the public stepped forward. President Jones closed the public portion of this hearing. President Jones opened the meeting to Commissioners. Upon a motion by Commissioner Ferlic, seconded by Vice-President Inks, the motion carried unanimously, the Commission approved Confirming Resolution No. 3488 West Washington Chapin Development Area submitted on Thursday, June 13, 2019. 1. Greta Clays from Greta’s Bridals 1130 Lincolnway East. When are the removal of the TIFs in the gray area are removed and when are the new areas going to be present. Mr. Relos stated that the new areas will have a base assessment date of January 1, 2019. B. River West Development Area 1. Purchase Agreement (Commonwealth Development LLC – Fat Daddy’s) Mr. Relos presented a Purchase Agreement (Commonwealth Development LLC – Fat Daddy’s). This is for the purchase of the property formerly known as Fat Daddy’s. The property has been through the disposition process in July 2017. We received one bid from Commonwealth Development that depended on state tax credits. They did not receive the tax credits at that time. They are still interested and have applied for the state tax credits once again. The agreement before the Commission has a purchased price of $45,000 which was the purchase price in 2017. It will be contingent on the awarding of low-income housing tax credits. The City planner has approval over the building layout and facade. Building completion is within three years. It is a private investment of $8.3M. Commission approval is requested. Upon a motion by Commissioner Ferlic, seconded by Secretary Phillips, the motion carried unanimously, the Commission approved Purchase Agreement (Commonwealth Development LLC – Fat Daddy’s) submitted on Thursday, June 13, 2019. South Bend Redevelopment Commission Regular Meeting – June 13, 2019 C. River East Development Area 1. Budget Request (East Bank Trail Sinkhole) Mr. Relos presented a budget request for the East Bank Trail Sinkhole. During last year’s historic river level, a sinkhole was created along the East Bank Trail just south of La Salle St. To our best determination the sinkhole was caused by unknown infrastructure from the 1880’s when the area was a mill. On April 15, 2019 BPW awarded a contract to address the sinkhole and safely investigate the nature of it. When they were able to award the contract, they had to dig out the hole and did find an underground channel that ran approximately 30’ to the east towards a parking lot. To safely fill this permanently to hopefully never happen again; the large vault that was at the bottom was filled with flowable fill, causing the project to go over budget in the amount of $9,265. Commission approval in that amount is requested. Upon a motion by Vice-President Inks, seconded by Secretary Phillips, the motion carried unanimously, the Commission approved Budget Request (East Bank Trail Sinkhole) submitted on Thursday, June 13, 2019. 2. First Amendment (Greater Lowell Holdings Water/Fire Infrastructure) Mr. Buckenmeyer presented First Amendment (Greater Lowell Holdings Water/Fire Infrastructure). In December 2017 the Commission provided support to rebuild and restore two historic buildings. The JC Lauber building and LaSalle Body Shop. Both projects have been underway for some time. This request is brought forward for the City to place a water and fire tap for the garage. We have a letter of intent from the Barcade, which is a new concept of a bar/arcade in the area, with a long-term lease to locate their new business there. We are asking for $450,000 of TIF for the City to complete a water/fire tap local improvement to this area. Frank Perri, spoke about the Barcade project as he has made several investments in this area. He knew the LaSalle Body Shop had possibilities and J2 Marketing came along and came up with the Bar/Arcade project. This is a promise to draw crowds from a larger area. J2 Marketing states they were formally in Mishawaka and knew that they belonged in South Bend with new and upcoming big things. They thank the Commission for getting the attention of entrepreneurs like them to bring new and exciting things with new jobs. Upon a motion by Secretary Phillips, seconded by Commissioner Ferlic, the motion carried unanimously, the Commission approved First Amendment (Greater Lowell Holdings Water/Fire Infrastructure). submitted on Thursday, June 13, 2019. 3. Project Agreement (City, ND and Stephenson Mill) Mr. Buckenmeyer presented Project Agreement (City, ND and Stephenson Mill). As I mentioned, Cascade (aka Wharf Partners), Stephenson Mills, Seitz Park and ND Hydroelectric project are all included in the easements here. We are South Bend Redevelopment Commission Regular Meeting – June 13, 2019 coordinating with the numerous parties. We are making sure everything will co- exist when everything is complete. This item allows Notre Dame and the City to use the parking lot for staging equipment and construction on the lot. The City is transferring the parking lot around Stephenson Mills and Central High School. Those entities have an exclusive easement over the parking lot which lets them be added to the tax roll. The City has arranged for temporary parking for the Stephenson Mills residents on the Wharf Partners property until August 2020 and thereafter an increased portion of the Stephenson parking lot. The City has also allotted a number of parking spaces to Stephenson Mills. The City along with Notre Dame will clean up and compensate Stephenson Mills if there is any structural damage. The City believes there is not a great risk here. The City will reimburse Stephenson Mills if there is any reduced rental income and they have provided us a base rental income. Upon a motion by Commissioner Ferlic, seconded by Vice-President Inks, the motion carried unanimously, the Commission approved Project Agreement (City, ND and Stephenson Mill) submitted on Thursday, June 13, 2019. 4. Easement Termination (City, Wharf Partners and Stephenson Mill re. Seitz Park area) Mr. Buckenmeyer presented Easement Termination (City, Wharf Partners and Stephenson Mill re. Seitz Park area). The property area around Seitz Park overlaps with easements and options to purchase. The agreement consolidates ownership to the deed holders and terminates many old easements, deed restrictions, etc. Upon a motion by Commissioner Ferlic, seconded by Vice-President Inks, the motion carried unanimously, the Commission Easement Termination (City, Wharf Partners and Stephenson Mill re. Seitz Park area) submitted on Thursday, June 13, 2019. 5. Easement Agreement (City, Wharf Partners and Stephenson Mill re. Gintz Rd.) Mr. Buckenmeyer presented Easement Agreement (City, Wharf Partners and Stephenson Mill re. Gintz Rd.). This agreement grants Stephenson Mills and Wharf Partners access from Colfax in to their sites though the private drive maintained by the City. This agreement provides an easement and the parking lot around Stephenson Mills for existing utilities to be maintained. Upon a motion by Commissioner Ferlic, seconded by Vice-President Inks, the motion carried unanimously, the Commission Easement Agreement (City, Wharf Partners and Stephenson Mill re. Gintz Rd.) submitted on Thursday, June 13, 2019. 6. Easement Termination Agreement (City re. Central High Parking Lot) Mr. Relos presented Easement Termination Agreement (City re. Central High Parking Lot). While there are no easements or City utilities at this site, Central High’s attorneys asked for us to execute this document. South Bend Redevelopment Commission Regular Meeting – June 13, 2019 Upon a motion by Commissioner Ferlic, seconded by Vice-President Inks, the motion carried unanimously, the Commission approved Easement Termination Agreement (City re. Central High Parking Lot) submitted on Thursday, June 13, 2019. 7. Special Warranty Deed to Stephenson Mills Mr. Buckenmeyer presented Special Warranty Deed to Stephenson Mills, to deed them the newly created Lot 2 of the Seitz Park Minor Subdivision. Upon a motion by Commissioner Ferlic, seconded by Vice-President Inks, the motion carried unanimously, the Commission approved Special Warranty Deed to Stephenson Mills submitted on Thursday, June 13, 2019. 8. Special Warranty Deed to Central High Mr. Buckenmeyer presented Special Warranty Deed to Central High, to deed them the parking lot around the Central High Apartments. Upon a motion by Commissioner Ferlic, seconded by Vice-President Inks, the motion carried unanimously, the Commission approved Special Warranty Deed to Central High submitted on Thursday, June 13, 2019. D. Other 1. Housing: Subordination Agreement with 1st Source Bank for loan in connection with the South Bend Home Improvement Program (Shannon L. Root, 1026 N. Adams Street) Ms. Elizabeth Leonard Inks presented Subordination Agreement with 1st Source Bank for loan in connection with the South Bend Home Improvement Program (Shannon L. Root, 1026 N. Adams Street). We are subordinating a mortgage that we had for 20 years for $3,400 on this property. The appraised value with the outstanding mortgages will cover all the city liability. Commission approval is requested. Upon a motion by Commissioner Ferlic, seconded by Secretary Phillips, the motion carried unanimously, the Commission approved Subordination Agreement with 1st Source Bank for loan in connection with the South Bend Home Improvement Program (Shannon L. Root, 1026 N. Adams Street) submitted on Thursday, June 13, 2019. 6. Progress Reports A. Tax Abatement B. Common Council 1. Common Council is asking that the Redevelopment Commission change their meeting times moving forward. Please check with each other and get back to the Council with your decision. C. Other South Bend Redevelopment Commission Regular Meeting – June 13, 2019 7. Next Commission Meeting: Thursday, June 27, 2019, 9:30 a.m. 8. Adjournment Thursday, June 13, 2019, 9:34 a.m. David Relos, Property Development Manager Marcia Jones, President