The URL can be used to link to this page

Home My WebLink AboutRDC Packet 8.22.2019South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Agenda Regular Meeting, August 22, 2019 – 4:00 p.m. 227 W. JEFFERSON BLVD., 1300 SOUTH BEND, INDIANA 1.Roll Call 2.Approval of Minutes A.Minutes of the Regular Meeting of Thursday, July 25, 2019 3.Approval of Claims A.Claims Submitted August 22, 2019 4.Old Business 5.New Business A.River West Development Area 1.Parking Lot License Agreement (Bhola Singh) - D2 B.River East Development Area 1.Memorandum of Understanding (Commerce Center Development LLC/East Bank South Bend Development LLC and Matthews 350 E LaSalle LLC) - D4 2.Second Amendment to Development Agreement (Greater Lowell Holdings LLC) - D4 C.Other 1.Professional Services Budget Increase (Baker Tilly) - All 6.Progress Reports A.Tax Abatement B.Common Council C.Other 7.Next Commission Meeting: Thursday, September 12, 2019, 4:00 p.m. 8. Adjournment NOTICE FOR HEARING AND SIGHT IMPAIRED PERSONS Auxiliary Aid or Other Services are Available upon Request at No Charge. Please Give Reasonable Advance Request when Possible. South Be n d Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, IN SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING July 25, 2019 4:00 p.m. 227 West Jefferson Boulevard Presiding: Marcia Jones, President South Bend, Indiana The meeting was called to order at 4:02 p.m. 1.ROLL CALL Members Present:Marcia Jones, President Quentin Phillips, Secretary Todd Monk, Commissioner Members Absent: Don Inks, Vice-President Gavin Ferlic, Commissioner Leslie Wesley, Commissioner Legal Counsel: Sandra Kennedy, Esq. Redevelopment Staff: David Relos, RDC Staff Mary Brazinsky, Board Secretary Others Present: Daniel Buckenmeyer Amanda Pietsch Beth Leonard Inks Jitin Kain Andrew Netter Charlotte Brach Kyle Silveus Zach Hurst DCI DCI DCI DCI DCI Engineering Engineering Engineering ITEM: 2A South Bend Redevelopment Commission Regular Meeting – July 25, 2019 2.Approval of Minutes A.Approval of Minutes of the Regular Meeting of Thursday, July 11, 2019 Upon a motion by Secretary Phillips, seconded by Commissioner Monk, the motion carried unanimously, the Commission approved the minutes of the regular meeting of Thursday, July 11, 2019. 3.Approval of Claims A.Claims Submitted July 25, 2019 Upon a motion by Secretary Phillips, seconded by Commissioner Monk, the motion carried unanimously, the Commission approved the claims submitted on Thursday, July 25, 2019. 4.Old Business South Bend Redevelopment Commission Regular Meeting – July 25, 2019 5.New Business A.River West Development Area 1.Agreement to Terminate Real Estate Purchase Agreement (Franklin Street) Mr. Buckenmeyer presented an Agreement to Terminate Real Estate Purchase Agreement with Franklin Street Technology Park LLC. Staff has been working with Charlie Hayes and his group for the development of the Hamilton Towing Block, but after market analysis they have decided to not move forward with this project and concentrate on their project at Eddy and Corby. There has been interest shown in this site from other interested parties. Commission approval is requested. President Jones opened the floor for public comment. No public comment was made. The floor was closed to public comment. Upon a motion by Secretary Phillips, seconded by Commissioner Monk, the motion carried unanimously, the Commission approved Agreement to Terminate Real Estate Purchase Agreement (Franklin Street) submitted on Thursday, July 25, 2019. 2.Resolution No. 3490 (Authorizing Transfer of Property to Board of Public Works) Mr. Netter presented Resolution No. 3490 (Authorizing Transfer of Property to Board of Public Works). This is an ongoing effort to clean up property information. We wish to transfer these properties from RDC to BPW since these are residential side lots with one being along the East Race sandwiched between two BPW properties. Commission approval is requested. President Jones opened the floor for public comment. No public comment was made. The floor was closed to public comment. Upon a motion by Secretary Phillips, seconded by Commissioner Monk, the motion carried unanimously, the Commission approved Resolution No. 3490 (Authorizing Transfer of Property to Board of Public Works) submitted on Thursday, July 25, 2019. B.South Side Development Area 1.Budget Request (St. Joseph Streetscape) Mr. Silveus presented a budget request for the St. Joseph Streetscape project. This will close out the St. Joseph Streetscape/road diet by the new Menards. The project included new street lighting and water main extension. This increase was needed to maintain proper pavement depth to ensure water drainage from the street. Commission approval is requested. South Bend Redevelopment Commission Regular Meeting – July 25, 2019 President Jones opened the floor for public comment. No public comment was made. The floor was closed to public comment. Upon a motion by Secretary Phillips, seconded by Commissioner Monk, the motion carried unanimously, the Commission approved Budget Request (St. Joseph Streetscape) submitted on Thursday, July 25, 2019. 6.Progress Reports A.Tax Abatement B.Common Council C.Other 7.Next Commission Meeting: Thursday, August 8, 2019, 4:00 a.m. 8.Adjournment Thursday, July 25, 2019, 4:07 a.m. David Relos, Property Development Manager Marcia Jones, President ITEM: 3A ITEM: 5A1 1 SECOND AMENDMENT TO DEVELOPMENT AGREEMENT THIS SECOND AMENDMENT TO DEVELOPMENT AGREEMENT (this “Second Amendment”) is made on August 22, 2019, by and between the South Bend Redevelopment Commission, the governing body of the City of South Bend Department of Redevelopment (the “Commission”), and Greater Lowell Holdings LLC, an Indiana limited liability company (the “Developer”) (each a “Party,” and collectively the “Parties”). RECITALS A.The Commission and the Developer entered into a Development Agreement dated effective December 14, 2017, which was amended on June 13, 2019 by a First Amendment to Development Agreement (together, the “Development Agreement”), for the development of a Project in the River East Development Area. B.The Commission agreed to expend the Funding Amount to complete the Local Public Improvements (“LPI”) in support of the Project in accordance with the Project Plan, as the same LPI are set forth on Exhibit C to the Development Agreement. C.Pursuant to Section 5.2(c) of the Development Agreement, bids were received for the Local Public Improvements (“LPI”) by the City of South Bend Board of Public Works (the “Board”), as the Commission’s agent, and the winning bid exceeded the Funding Amount. D.The Commission has agreed to pay a portion of the overage, and the Developer has agreed to pay the remainder of the overage and any further change orders needed to complete the LPI; in consideration therefor, the Commission is willing to increase the Funding Amount, thereby permitting the Board’s award of the contracts for the LPI. E.The Parties now desire to modify the Development Agreement to reflect the Parties’ agreement, as set forth herein. NOW, THEREFORE, in consideration of the mutual promises and obligations stated in the Development Agreement and this Second Amendment, the adequacy of which is hereby acknowledged, the Parties agree as follows: 1.Section 1.3 of the Development Agreement shall be deleted in its entirety and replaced with the following: 1.3 Funding Amount. “Funding Amount” means an amount not to exceed Four Hundred Sixty-Seven Thousand Seven Hundred Twenty-Five and 38/100 Dollars ($467,725.38) of tax increment finance revenues to be used for paying the costs associated with the construction, equipping, inspection, and delivery of the Local Public Improvements in support of the Project (inclusive of the Developer’s improvements to both the LaSalle Property and the Colfax Property). The Parties acknowledge and agree that Developer shall expend Four Hundred Thousand Dollars ($400,000.00) on Local Public Improvements in accordance with Exhibit C, and an amount not to exceed Sixty Thousand ITEM: 5B2 2 Dollars ($60,000.00) is specifically to be applied to the infrastructure cost of water taps for the sprinkler system of the Colfax Property (“Sprinkler Funds”). The remaining Seven Thousand Seven Hundred Twenty-Five and 38/100 Dollars ($7,725.38) shall be reimbursed to the Commission by the Developer in accordance with Section 5.2(d). 2. Section 5.2(d) of the Development Agreement shall be deleted in its entirety and replaced with the following: (d) Notwithstanding anything contained herein to the contrary, in the event the costs associated with the Local Public Improvements are in excess of the Funding Amount, Developer, at its sole option, may determine to pay to the Commission the amount of the excess costs to permit timely completion of the Local Public Improvements by the Commission, or an agent of the Commission, which amounts shall be applied for such purpose. In such case, the Developer shall provide the Commission with payment in immediately available funds within five (5) business days of its determination, and, in any event, before a notice to proceed will be provided by the Commission, or an agent of the Commission, to any contractor. If Developer chooses not to pay any such excess costs of the Local Public Improvements (above the Funding Amount), the Commission may reduce the scope of the Local Public Improvements to the amount which may be funded with the Funding Amount. In no event will the Commission be required to spend more than the Funding Amount in connection with the Project. 3. The Developer hereby expressly reaffirms its obligations under the Development Agreement, and, unless expressly modified by this Second Amendment, the terms and provisions of the Development Agreement remain in full force and effect. 4. Capitalized terms used in this Second Amendment will have the meanings set forth in the Development Agreement unless otherwise stated herein. 5. The recitals set forth above are hereby incorporated into the operative provisions of this Second Amendment. 6. This Second Amendment will be governed and construed in accordance with the laws of the State of Indiana. 7. This Second Amendment may be executed in separate counterparts, each of which when so executed shall be an original, but all of which together shall constitute one and the same instrument. Any electronically transmitted version of a manually executed original shall be deemed a manually executed original. Signature Page Follows 3 IN WITNESS WHEREOF, the Parties hereby execute this Second Amendment to Development Agreement as of the first date stated above. COMMISSION: SOUTH BEND REDEVELOPMENT COMMISSION By:____________________________________ Marcia I. Jones, President ATTEST: By:____________________________________ Quentin Phillips, Secretary DEVELOPER: GREATER LOWELL HOLDINGS LLC By: _____________________________________ Frank Perri, Manager ITEM: 5C1