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HomeMy WebLinkAbout2 Minutes 08-16-12 MeetingSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 115, 2012 9:30 a.m. Presiding: Marcia I. Jones, President 1. RO L CALL Members Present: 2. Absent: Counsel: 227 West Jefferson Boulevard South Bend, Indiana Ms. Marcia Jones, President Dr. David Varner, Vice President Mr. Greg Downes Mr. Henry Davis Mr. John Stancati Mr. Donald Alford Sr., Secretary Mr. Lawrence Meteiver, Esq. Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. David Relos, Economic Development Specialist Mr. Jitin Kain, Economic Development Specialist Ms. Debrah Jennings, Property Manager Present: Mr. Scott Ford, Executive Director Ms. Liz Maradik Mr. Thomas Coley, Ivy Tech Mr. Jim Jasiewicz, Ivy Tech Mr. Charles Hayes Mr. David Hodges Mr. John Mester Ms. Krista Cota Mr. Rick Doolittle, Grubb & Ellis Cressy & Everett Mr. Mark Peterson, WNDU Mr. Marty Wolfson, Community Forum for Economic Dev Mr. Kevin Allen, South Bend Tribune Ms. Patti Lesniewicz AL OF MINUTES A. pproval of Minutes of the Regular Meeting of �hursday, July 26, 2012. a motion by Mr. Varner, seconded by Mr. COMMISSION APPROVED THE MINUTES OF THE South B�eeting d Redevelopment Commission Regular — August 16, 2012 ►R 3. A. Red VAL OF MINUTES (CONT.) and unanimously carried, the Commission I the Minutes of the Regular Meeting of (, July 26, 2012. AL OF CLAIMS REGULAR MEETING OF THURSDAY, JULY 26, 2012 Commission Claims submitted August 16, 2012 for approval. opment Commission Claims submitted August 16, 2012 for approval South Bend Tribune DHA DHA WITT Appraise services, Inc ARC D LZ Ziolk wski Construction, Inc. Meric ian Title Corporation Hull 8. Associates, Inc. Own rs' Association at Blackthorn WITT Appraisal Services, Inc. Seleg Construction Co., Inc. ARC ARC Mich els Appraisal Service Amp co System Parking Paul Fujawa Engineering Abon arche DTS B Rose est Solutions NERAL 56.89 Facade Improvements Lot 4 of Ignition Park 2,250.00 Survey 802 S Lafayette 2,250.00 Survey 822 S Lafayette 850.00 1017 W Indiana Ave & 1527 Kemble Ave 267.96 Data Realty Lot 4 Facade Improvement 412.50 On Site bid packet B 650.00 1017 W Indiana Ave & 1527 Kemble Ave 300.00 Vacant Land S Scott St / 1526 Prairie Ave 9,552.00 GWS VRP & Soil Gas Sampling 12,393.33 Landscape /Irrigation 550.00 1526 Prairie Ave Scott St @ Indiana Ave 83,926.34 Ignition Park Ph 1A 94.81 Ignition Park So. Demo Ph 3 Copies 205.47 Data Realty Lot 4 Fagade Improvements 650.00 S Scott Vacant Lot / 1526 Prairie Ave 4,241.56 St Joseph & 225 Main St. Surface 220.00 Fat Daddy's Block 1,730.00 Niles Ave Right of Way 21,875.00 Beautification Program 103.00 Pest Control 2 South Be Regular T 3. Redevelopment Commission sting — August 16, 2012 OVAL OF CLAIMS (CONT.) 422 111F DISTRICT WEST WASHINGTON Gibson- Lewis, LLC Reit 426 D LZ The ley Construction Co., Inc. 237,809.70 Hansel Center Renovations Memorial Hospital Streetscape 241,159.61 Improvement Bid Package UND SOUTH BEND CENTRAL MEDICAL DISTRICT 1,035.00 Engineering royer Group 4,774.13 Skyway Memorial $627,357.30 Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Clairr s submitted August 16, 2012, and ordered checks to be released. 4. CO A. CATIONS Side Development Area 1) Summary of Communications on Fellows Street realignment project. Mr. Schalliol provided the Commissioners with a summary of the Communications Commissioners had received over the last several weeks regarding the Fellows Street improvement project. The summary is attached to these Minutes. 5. OLDI BUSINESS A. Alrport Economic 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 Bridge and Skyway Building facades). 3 COMMISSION APPROVED THE CLAIMS SUBMITTED AUGUST 16, 2012, AND ORDERED THE CHECKS TO BE RELEASED South Bed Redevelopment Commission Regular Meeting — August 16, 2012 5. OLDS BUSINESS (CONT.) A. Airport Economic Development Area ) continued... Mr. Relos noted that on March 13, 2012, the Commission approved Resolution No. 3009 authorizing the Board of Public Works to act as its agent for the Memorial Hospital Fagade Project (fagade project), for new facades to the Skyway Bridge and Skyway Building. When the fagade project was planned, it included window replacement on the west and south sides of the building. Because of construction estimates, the window replacement was removed to keep the project within budget. On May 15, 2012, bids were opened on the fagade project, coming in well below construction estimates. On May 31, 2012, the Commission approved a professional services agreement with the Troyer Group to prepare the necessary designs, construction bid specs, and construction oversight, for this project. Funding is available to replace these windows, and their replacement will allow windows in the Skyway Building and the Skyway Bridge to match. This window replacement project will help tie the Memorial Hospital campus into a unified look, will make a dramatic entrance corridor into the downtown core and compliment the work that has recently been completed north of La Salle between Michigan and Lafayette. V. South B�eeting d Redevelopment Commission Regular — August 16, 2012 5. OLDIBUSINESS (CONT.) A. 8irport Economic Development Area continued... Staff requests approval of Resolution No. 3048, and the Addendum to the Master Agency Agreement, in the amount of $350,000. Mr. Varner asked whether this would leave any money in the Medical District TIF to update the garden in Leeper Park. Mr. Relos responded that it would.. Mr. Relos has approached Memorial about using some funds for that and they seemed agreeable. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3048 approving and authorizing the execution of an Addendum to the Master Agency Agreement with the Board of Public Works (Skyway Bridge and Skyway Building facades). 6. NEW BUSINESS A. $outh Bend Central Development Area Resolution No. 3064 amending the Development Plan for the South Bend Central Development Area and adopting the Master Plan for the Howard Park Neighborhood. Mr. Kain noted that Resolution No. 3064 is the declaratory resolution for amending the Development Plan for the South Bend Central Development Area to add to the Plan portions of the Howard Park Neighborhood 5 COMMISSION APPROVED RESOLUTION NO. 3048 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT WITH THE BOARD OF PUBLIC WORKS (SKYWAY BRIDGE AND SKYWAY BUILDING FACADES). South Be 4d Redevelopment Commission Regular Meeting — August 16, 2012 6. NEW1 BUSINESS (CONT.) A. South Bend Central Development Area (�) continued... Plan that relate to areas that lie within the current development area boundaries. The Howard Park Neighborhood of South Bend has the potential to become an exciting, dynamic urban neighborhood and is poised for private sector investment and development of its infill properties. After the completion of Phase I of the, East Bank Master Plan (covers neighborhood North of Jefferson Blvd) in 2008, the Commission approved a planning study of the Phase II area, more commonly known as the Howard Park Neighborhood. This area is decidedly more residential in character. However, there are several commercial and industrial users that call the Howard Park Neighbor- hood home and have scenic river views which characterize the vast potential the neighborhood possesses. Key strategies identified in the plan include: • Redevelopment of the 10 -acre Transpo site into a mix of residential uses along the river front • Conversion of existing industrial uses to residential as those properties come up for sale or re -use • Enhancement of the River Walk • Pedestrian and bike friendly pathways throughout the neighborhood. The original plan was completed in the spring of 2009. At the time the South Bend Central Development Area did not include the eastern half of the Transpo site. In December of 2011, the boundaries of the rol South B Redevelopment Commission Regular Meeting — August 16, 2012 6. NENY BUSINESS (CONT.) A. South Bend Central Development Area ) continued... development area were expanded to include the remainder of the Transpo site in order to support a private sector development project. The declaratory resolution begins the plan amendment process; however there are several steps involved: • August 21 Present Resolution to Area Plan Commission • August 27 Present Resolution to Common Council September 13 Redevelopment Commission Confirming Resolution - public hearing and approval Staff requests approval of Resolution No. 3064 to begin the process to amend the South Bend Central Development Area Plan Since the current development area does not cover the entire geography of the Master Plan, the Plan amendment will only relate to areas where Commission has jurisdiction. Mr. Varner asked Mr. Kain to clarify his statement about the conversion of commercial properties into residential and whether this would displace commercial business owners. Mr. Kain clarified that the Plan did not recommend any zoning changes to proactively change from commercial to residential. He said that the Plan recommends maintaining commercial zones by Jefferson and St. Louis Blvd as well as Jefferson and Eddy. A few blocks between these two nodes were originally residential and the conversion of commercial to residential in 7 South B Regular 6. Redevelopment Commission -ting — August 16, 2012 BUSINESS (CONT.) A. South Bend Central Development Area [) continued... those blocks was already happening organically. The Plan recommended that this continue. Mr. Varner then interpreted the Plan recommendation to include some commercial and some residential in the neighborhood to which Mr. Kain agreed. Mr. Davis questioned the conversion of commercial to residential uses further, and stated that a recent rezoning request in the neighborhood had referenced this idea. He stated that the rezoning was being given an unfavorable recommendation because of the Plan and further expressed concerns about displacing businesses. Mr. Kain stated that the rezoning petition was filed in an area labeled "future development" and that the Plan did not have any specific recommendations for this area. It was expected that this area would have a mix of residential and commercial uses. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3064 amending the Development Plan for the South Bend Central Development Area and adopting the Master Plan for the Howard Park Neighborhood. Intent to Lease 123 S. Michigan Street (Gordon Ventures, LLC /Edible Arrangements) Ms. Jennings noted that Gordon Ventures, LLC, has submitted a proposal to lease space COMMISSION APPROVED RESOLUTION NO. 3064 AMENDING THE DEVELOPMENT PLAN FOR THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND ADOPTING THE MASTER PLAN FOR THE HOWARD PARK NEIGHBORHOOD. South Bqd Redevelopment Commission Regular eeting — August 16, 2012 6. NENV BUSINESS (CONT.) A. South Bend Central Development Area continued... in the South Bend Redevelopment Retail Area. A national retail franchise known as Edible Arrangements intends to rent 123 S. Michigan St. with the following terms: • Lease Term five (5) years, with the option of three (3) five year lease renewals; • Initial rent is $7.50 per sq. ft., totaling $11,475 per year and increasing 3% annually; • Common Area Maintenance (CAM) and property tax will be billed at $5.61 per sq. ft. totaling $8,583.30 per year; • Tenant will take possession of space in "as is" condition; • Owner will allow tenant to place a construction dumpster in front of leased premises for no more than two (2) days; • Owner will provide six (6) parking permits for Leighton Parking garage at a reduced rate of $30 each per month. Edible Arrangements is a National Franchise that produces floral shaped and sculpted fruit arrangements dipped in assorted flavors and toppings. Because they are a franchise, they will require acceptance of this agreement from their corporate headquarters upon approval from the Redevelopment Commission. Therefore, Commissioners were provided a draft of the proposed lease 1 South B Regular 6. Redevelopment Commission -ting — August 16, 2012 BUSINESS (CONT.) A. South Bend Central Development Area continued... agreement. The proposed lease agreement has been sent to the prospective tenant, but we have not received their review comments. Staff requests approval of the lease terms and the proposed lease agreement, subject to legal review of the final agreement. Ms. Jennings noted that upon approval of this agreement, Redevelopment Retail will once again be 100% occupied. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the terms of lease for 123 S. Michigan Street to Gordon Ventures, LLC /Edible Arrangements, subject to legal review of the final document. Resolution No. 3069 approving and authorizing the execution of an Addendum to the Master Agency Agreement with the Board of Public Works (Access Agreement for Orchestra Pit Donation) Mr. Inks noted that at its July 26 meeting the Commission authorized the Morris PAC to install an Orchestra Pit in order to better accommodate its shows. The project is fully funded through a Community Foundation matching grant. Resolution No. 3069 authorizes the Board of Public Works to act as its agent to oversee bidding and construction of the pit. Staff recommends approval. 10 COMMISSION APPROVED THE TERMS OF LEASE FOR 123 S. MICHIGAN STREET TO GORDON VENTURES, LLC /EDIBLE ARRANGEMENTS, SUBJECT TO LEGAL REVIEW OF THE FINAL DOCUMENT South B Redevelopment Commission Regular Meeting — August 16, 2012 6. NEW BUSINESS (CONT.) A. ISouth Bend Central Development Area ) continued... Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3069 approving and authorizing the execution of an Addendum to the Master Agency Agreement with the Board of Public Works (Access Agreement for Orchestra Pit Donation). (4) Proposal for 3rd Amendment of Listing Agreement with CBRE /Bradley (Hotel LaSalle and vacant lot at Colfax and Hill. Mr. Relos noted that this Amendment of Listing Agreement from CBRE /Bradley extends through August 31, 2013 the listing agreement for the Hotel La Salle and vacant lot at Colfax & Hill. In this challenging real estate market, staff believes CBRE is doing a good job marketing these properties and screening potential interested parties. Staff requests approval. Mr. Varner asked whether this extension was necessary because the deal was falling through for the LaSalle Hotel with the Kalamazoo interests. Mr. Relos responded that, no, that developer just needs a little more time. Mr. Relos believes they are still interested. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Proposal for 3rd Amendment of Listing Agreement with CBRE /Bradley (Hotel LaSalle and vacant lot at Colfax and Hill. 11 COMMISSION APPROVED RESOLUTION No. 3069 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT WITH THE BOARD OF PUBLIC WORKS (ACCESS AGREEMENT FOR ORCHESTRA PIT DONATION). COMMISSION APPROVED THE PROPOSAL FOR 3RD AMENDMENT OF LISTING AGREEMENT WITH CBRE /BRADLEY (HOTEL LASALLE AND VACANT LOT AT COLFAX AND HILL. South B Regular 6. Redevelopment Commission °ting — August 16, 2012 BUSINESS (CONT.) A. b outh Bend Central Development Area Resolution No. 3059 setting the Fair Market Value of property in the South Bend Central Development Area (402 S. Lafayette) Mr. Relos noted that Resolution No. 3059 sets the fair market value for 402 S. Lafayette Blvd. at $82,500, the average of two independent appraisals. Staff requests approval of Resolution No. 3059. Mr. Inks noted that this lot was one of the Gates properties that we had to purchase to acquire the property the VA wanted. Gates wanted to sell all their properties together. This is one we felt we could sell and recoup some of our acquisition costs from. We hope to sell it for close to its appraised value. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3059 setting the Fair Market Value of property in the South Bend Central Development Area (402 S. Lafayette). Bid Specifications and Design Considerations for property located at 402 S. Lafayette) Mr. Relos noted that the Bid Specifications and Design Considerations for 402 S. Lafayette Blvd. include that the project must meet zoning requirements established by the zoning ordinance and that the developer must provide a basic reuse plan for the site and a 12 COMMISSION APPROVED RESOLUTION NO. 3059 SETTING THE FAIR MARKET VALUE OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA (402 S. LAFAYETTE). South Bind Redevelopment Commission Regular Meeting — August 16, 2012 6. NEW BUSINESS (CONT.) A. . South Bend Central Development Area 6) continued... project.timeline detailing aspects of the site development and site improvements. The property may not be purchased for speculation. Mr. Davis questioned whether there is any benefit to having a plan for the area. He noted that when a development opportunity comes up that isn't in the plan, we decide it "fits" and approve it. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED THE BID Mr. Downes and unanimously carried, the SPECIFICATIONS AND DESIGN CONSIDERATIONS Commission approved the Bid Specifications FOR PROPERTY LOCATED AT 402 S. LAFAYETTE. and Design Considerations for property located at 402 S. Lafayette. (7) Authorization to publish Notice of Intended Disposition of Property with publication dates of August 24 and August 31, 2012 and receipt of bids at 9:30 a.m., September 13, 2012. (402 S. Lafayette) Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission authorized publication of the Notice of Intended Disposition of Property with publication dates of August 24 and August 31, 2012 and receipt of bids at 9:30 a.m., September 13, 2012. (402 S. Lafayette) (8) Proposal for cleanup and light demolition services at 402 S. Lafayette. Mr. Schalliol noted that staff solicited a proposal from Jackson Truck & Excavating 13 COMMISSION AUTHORIZED PUBLICATION OF THE NOTICE OF INTENDED DISPOSITION OF PROPERTY WITH PUBLICATION DATES OF AUGUST 24 AND AUGUST 31, 2012 AND RECEIPT OF BIDS AT 9:30 A.M., SEPTEMBER 13, 2012. (402 S. LAFAYETTE) South B4eeting d Redevelopment Commission Regular — August 16, 2012 6. NEW BUSINESS (CONT.) A. youth Bend Central Development Area continued... to provide clean -up and light demolition services at the Commission owned property at 402 S. Lafayette the former Gates Used Toyota Sales lot. The services requested include removal of the office trailer, removal of fencing and two sign structures and removal of a couple poles encased in concrete. The cost of the clean -up service is proposed as $5,000. Staff recommends approval with a not -to- exceed limit of $7,500. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE PROPOSAL FROM Mr. Varner and unanimously carried, the JACKSON TRUCK & EXCAVATING FOR THE Commission approved the proposal from SCOPE OF SERVICES AND A FEE NOT TO EXCEED $7,500 Jackson Truck & Excavating for the scope of services and a fee not to exceed $7,500. 1St Amendment to Lease with First Church of Christ Scientist for 129 S. Michigan St. Ms. Jennings noted that the First Church of Christ Scientist is Redevelopment Retail's oldest tenant, having leased since 2007. First Church has maintained an excellent rental record. Their current lease is due to expire November 30, 2012. According to their lease, they are required to give 180 days notice of their intent to exercise the option to extend their lease term. The tenant would like to renew the lease with following terms: • Sixty (60) month lease extension period, ending November 30, 2017; • Tenant rent set at $11.50 per sq. ft. 14 South B Regular 6. A. Redevelopment Commission -ting — August 16, 2012 BUSINESS (CONT.) Bend Central Development Area continued... totaling $12,144 per year•, Common Area Maintenance (CAM) and property tax shall be filled at $6.25 per sq. ft. totaling $6,600 per year and then increasing $39 per sq. ft. annually. First Church of Christ Scientist is a tenant Redevelopment Retail would like to keep. Staff recommends approval. Mr. Downes thought the CAM charges seemed high. He recommended staff review the CAM costs being charged other tenants and make sure these are comparable. Ms. Jennings will review that. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the 1 St Amendment to Lease with First Church of Christ Scientist for 129 S. Michigan St., subject to review of the other tenants' CAM charges. B. Airport Economic Development Area Proposal for survey services related to the Renaissance District. Mr. Schalliol noted that staff solicited proposals from Lang Feeney and Associates for two jobs in the Renaissance District area. The scope of work for the first proposal is to define the southern property limits of the South Bend Housing Authority property 15 COMMISSION APPROVED THE 1"AMENDMENT TO LEASE WITH FIRST CHURCH OF CHRIST SCIENTIST FOR 129 S. MICHIGAN ST. SUBJECT TO REVIEW OF THE OTHER TENANTS' CAM CHARGES South B�eeting d Redevelopment Commission Regular — August 16, 2012 6. NEW BUSINESS (CONT.) B. airport Economic Development Area ) continued... between Chapin and Scott for the purpose of establishing a utility easement through the area. The easement would allow all utilities to place services in the easement and would immediately facilitate the connection of the west side AEP substation to the Union Station Technology Center to provide an alternate and redundant power source. The cost of that proposal is $2,450. The scope of work for the second proposal is to define the right -of -way for South Street between Scott and Taylor. Due to the closure and vacation of United Drive as part of the Renaissance District project, the city needs to better understand all utility infrastructure and right -of -way limits associated with this corridor in the event improvements or upgrades are required. The cost of the proposal is $1,725. The total cost for the two survey projects is $4,175. The study area is outside the limits of both the AEDA and SBCDA, but staff requests to use AEDA funds to pay for this study because the area is adjacent to the AEDA and serves and benefits projects within the AEDA. Mr. Davis noted the high density of population in that area and expressed concerns regarding the electro- magnetic fields that might be created by the power lines. He wondered if staff had discussed this with AEP. Mr. Davis wants to be sure the city won't do anything to jeopardize the 16 South B Redevelopment Commission Regular eeting — August 16, 2012 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area ) continued... health and safety of nearby residents. Mr. Schalliol responded that he had not discussed this issue with AEP, but he will be meeting soon with them and would bring that up. Mr. Davis also requested that alternative power sources, namely solar, be considered as a source for providing power to the site. Staff will work with USTC staff and AEP to look at all alternatives before anything is done. Mr. Varner made a motion to approve the proposals from Lang Feeney and Associates for the scope of services and fee proposed and to authorize the use of Airport Economic Development Area TIF funds to pay for the survey. Mr. Downes seconded. The motion carried on a vote of three to one. Mr. Davis opposed. (2) Resolution No. 3065 related to acquisition of property at 1526 Prairie Ave. Mr. Relos noted that 1526 Prairie Ave. was added to the Airport Economic Development Area's Acquisition List by Resolution No. 2668 on May 21, 2010. The property is a vacant lot and is next to other Commission owned properties. The property is now on the September 2012 County tax sale list and staff wishes to acquire it through the tax sale. Resolution No. 3065 sets the acquisition value of the property at $2,525, the average of two independent appraisals. Staff requests 17 COMMISSION APPROVED THE PROPOSALS FROM LANG FEENEY AND ASSOCIATES RELATED TO THE RENAISSANCE DISTRICT FOR THE SCOPE OF SERVICES AND FEE PROPOSED AND TO AUTHORIZE USE OF AIRPORT ECONOMIC DEVELOPMENT AREA TIF FUNDS FOR THE SURVEY South B Regular G11 It Redevelopment Commission -ting — August 16, 2012 BUSINESS (CONT.) Economic Development Area continued... approval of Resolution No. 3065 to allow for the possible acquisition of this property. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED RESOLUTION No. 3065 Mr. Varner and unanimously carried, the RELATED TO ACQUISITION OF PROPERTY AT 1526 Commission approved Resolution No. 3065 PRAIRIE AVE. related to acquisition of property at 1526 Prairie Ave. Resolution No. 3066 related to acquisition of a vacant lot on S. Scott Street. Mr. Relos noted that this vacant lot at the northeast corner of Indiana and Scott was added to the Airport Economic Development Area's Acquisition List by Resolution No. 2668 on May 21, 2010. It is also on the September 2012 County tax sale list and staff wishes to acquire it through the tax sale. Resolution No. 3066 sets the acquisition value of the property at $1,250, the average of two independent appraisals. Staff requests approval of Resolution No. 3066, to allow for the possible acquisition of this property at the tax sale. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3066 related to acquisition of a vacant lot on S. Scott Street. (4) Resolution No. 3062 related to acquisition of property through the St. Joseph County Tax Sale. (1510 S. Taylor, 1526 Prairie and vacant lot on S. Scott. 18 COMMISSION APPROVED RESOLUTION No. 3066 RELATED TO ACQUISITION OF A VACANT LOT ON S. SCOTT STREET. South Bend Redevelopment Commission Regular eeting — August 16, 2012 6. NEV�J BUSINESS (CONT.) B. Airport Economic Development Area 4) continued... Mr. Relos noted that on May 21, 2010, the Commission approved Confirming Resolution No. 2668, which added various properties to the acquisition list of the Airport Economic Development Area. Three of these properties are expected to be up for sale at the St. Joseph County September 2012 tax sale. Staff believes purchasing these properties from the tax sale will cost less than through the normal acquisition process. Of these three properties, two are vacant lots and one has been improved with a one story, three bedroom house. The improved property,has been appraised, and on January 24, 2012, the Commission approved Resolution No. 2996, setting the acquisition offering value at $23,500. The two vacant lots have just recently been appraised with a combined value of $3,775. Since these properties are already on the Area's acquisition list, staff requests approval of Resolution No. 3062, to take the necessary steps to register and bid on these parcels, for a not -to- exceed total of $30,100. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3062 related to acquisition of property through the St. Joseph County Tax Sale in the not -to- exceed amount of $30,100 (1510 S. Taylor, 1526 Prairie and vacant lot on S. Scott). 19 COMMISSION APPROVED RESOLUTION NO. 3062 RELATED TO ACQUISITION OF PROPERTY THROUGH THE ST. JOSEPH COUNTY TAX SALE IN THE NOT-TO-EXCEED AMOUNT OF $30,100 (15 10 S. TAYLOR, 1526 PRAIRIE AND VACANT LOT ON S. SCOTT). South Bend Redevelopment Commission Regular Meeting — August 16, 2012 6. NE BUSINESS (CONT.) B. �,irport Economic Development Area Real Estate Donation Agreement with Ivy Tech for 230 E. Sample Street (former Discount Rental) Mr. Relos noted that on May 08, 2012, the Commission authorized staff to move forward with the donation to Ivy Tech of the Discount Rental property, 230 E. Sample Street. With the Discount Rental property, Ivy Tech will be able to increase its parking, which is a critical and immediate need, and thereby hold additional classes at their ITOSS building next door. The attached Real Estate Donation Agreement will finalize this transaction, and allow the transfer of this property to Ivy Tech. Staff requests approval of the Real Estate Donation Agreement. Chancellor Tom Coley and Jim Jasiewicz thanked the Commission for its efforts on Ivy Tech's behalf. Ms. Jones and Mr. Downes wished them good luck. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Real Estate Donation Agreement with Ivy Tech for 230 E. Sample Street (former Discount Rental). 6) Resolution No. 3060 approving the Fair Market Value of Property in the Airport Economic Development Area. (1017 W. Indiana Ave.) Mr. Relos noted that Resolution No. 3060 sets the fair market value for 1017 W. Indiana Ave. at $1,750, the average of two independent appraisals. Staff requests 20 COMMISSION APPROVED THE REAL ESTATE DONATION AGREEMENT WITH IVY TECH FOR 230 E. SAMPLE STREET (FORMER DISCOUNT RENTAL). South B d Redevelopment Commission Regular eeting — August 16, 2012 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area 6) continued... approval of Resolution No. 3060. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3060 approving the Fair Market Value of Property in the Airport Economic Development Area. (10 17 W. Indiana Ave.) Bid Specifications and Design Considerations for property located at 1017 W. Indiana Ave. Mr. Relos noted that the Bid Specifications and Design Considerations for disposition of 1017 W. Indiana Ave. include that all offers must meet the minimum offering price, must conform to the existing zoning provisions set forth for an MU zoning district, and must include a basic reuse plan for the site and a project timeline detailing aspects of the site development and site improvements. During the review process, emphasis will be placed on compatibility with the goals and objectives of neighboring Ignition Park PUD, as well as the Development Plan for the Airport Economic Development Area. The property may not be purchased for speculation. COMMISSION APPROVED RESOLUTION NO. 3060 APPROVING THE FAIR MARKET VALUE OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (10 17 W. INDIANA AVE.) Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED THE BID Mr. Downes and unanimously carried, the SPECIFICATIONS AND DESIGN CONSIDERATIONS Commission a pp roved the Bid Specifications FOR PROPERTY LOCATED AT 1017 W. INDIANA p ec AVE. and Design Considerations for property located at 1017 W. Indiana Ave. 21 South Bi Regular 11 B. Redevelopment Commission -ting — August 16, 2012 BUSINESS (CONT.) Economic Development Area (8) Authorization to publish Notice of Intended Disposition of Property with publication dates of August 24 and August 31, 2012 and receipt of bids at 9:30 a.m., September 13, 2012. (1017 W. Indiana Ave.) Upon a motion by Mr. Varner, seconded by Mr. Dowries and unanimously carried, the Commission authorized publication of the Notice of Intended Disposition of Property with publication dates of August 24 and August 31, 2012 and receipt of bids at 9:30 a.m., September 13, 2012. (1017 W. Indiana Ave.) Resolution No. 3061 approving the Fair Market Value of Property in the Airport Economic Development Area. (1527 S. Kemble) Mr. Relos noted that Resolution No. 3061 sets the fair market value for 1527 S. Kemble Ave. at $2,500, the average of two independent appraisals. Staff requests approval of Resolution No. 3061. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3061 approving the Fair Market Value of Property in the Airport Economic Development Area. (1527 S. Kemble) 0) Bid Specifications and Design Considerations for property located at 1527 S. Kemble. 22 COMMISSION AUTHORIZED PUBLICATION OF THE NOTICE OF INTENDED DISPOSITION OF PROPERTY WITH PUBLICATION DATES OF AUGUST 24 AND AUGUST 31, 2012 AND RECEIPT OF BIDS AT 9:30 A.M., SEPTEMBER 13, 2012. (10 17 W. INDIANA AVE.) COMMISSION APPROVED RESOLUTION NO. 3061 APPROVING THE FAIR MARKET VALUE OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (1527 S. KEMBLE) South Be d Redevelopment Commission Regular Nleeting — August 16, 2012 6. NEVI BUSINESS (CONT.) B. Airport Economic Development Area 0) continued... Mr. Relos noted that the Bid Specifications and Design Considerations for the disposition of 1017 W. Indiana Ave. include that all offers must meet the minimum offering price, must conform to the existing zoning provisions set forth for an MU zoning district, and must include a basic reuse plan for the site and a project timeline detailing aspects of the site development and site improvements. During the review process, emphasis will be placed on compatibility with the goals and objectives of neighboring Ignition Park PUD, as well as the Development Plan for the Airport Economic Development Area. The property may not be purchased for speculation. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Bid Specifications and Design Considerations for property located at 1527 S. Kemble. 1) Authorization to publish Notice of Intended Disposition of Property with publication dates of August 24 and August 31, 2012 and receipt of bids at 9:30 a.m., September 13, 2012. (1527 S. Kemble) Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission authorized publication of the Notice of Intended Disposition of Property with publication dates of August 24 and August 31, 2012 and receipt of bids at 9:30 a.m., September 13, 2012. (1527 S. Kemble) 23 COMMISSION APPROVED THE BID SPECIFICATIONS AND DESIGN CONSIDERATIONS FOR PROPERTY LOCATED AT 1527 S. KEMBLE. i COMMISSION AUTHORIZED PUBLICATION OF THE NOTICE OF INTENDED DISPOSITION OF PROPERTY WITH PUBLICATION DATES OF AUGUST 24 AND AUGUST 31, 2012 AND RECEIPT OF BIDS AT 9:30 A.M., SEPTEMBER 13, 2012. (1527 S. KEMBLE) South B Regular 311 Redevelopment Commission ,ting — August 16, 2012 BUSINESS (CONT.) B. �irport Economic Development Area Resolution No. 3053 approving and authorizing the execution of an Addendum to the Master Agency Agreement with the Board of Public Works (Hamilton Towing Property Demolition) Mr. Schalliol noted that the Commission took possession of the former Hamilton Towing storage yard at 802 S. Lafayette on August 1. Resolution No. 3053 authorizes the Board of Public Works to act as the Commission's agent to bid out and oversee demolition of the building and fencing on it and to clear the property of undergrowth. The proposed fixture use of the parcel is for a substation location to support the Renaissance District, but since a final site plan has not yet been set, the demolition will only clean and clear the site and not address curbs, walks or other site elements. The staff is working with the Engineering Department to put a quote package out for demolition. The city quote limit is $75,000 and staff is asking for a total project budget of $90,000 to cover any unforeseen expenses on the site demolition. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3053 approving and authorizing the execution of an Addendum to the Master Agency Agreement with the Board of Public Works (Hamilton Towing Property Demolition). 24 COMMISSION APPROVED RESOLUTION No. 3053 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT WITH THE BOARD OF PUBLIC WORKS (HAMILTON TOWING PROPERTY DEMOLITION). South B�eeting d Redevelopment Commission Regular — August 16, 2012 6. NEW BUSINESS (CONT.) B. �irport Economic Development Area Resolution No. 3067 approving and authorizing the execution of an Addendum to the Master Agency Agreement with the Board of Public Works (Commerce Drive and Sheridan and Lincolnway Project — Supplement #1) Mr. Relos noted that the purpose of this supplement is to provide additional on -site work to identify and verify utility locations on both Commerce and Sheridan. Additionally, the projects (originally two separate projects) will be merged into one document for bidding purposes and the Rule 5 Permit for IDEM will be modified to reflect this change. The total budget scope change is estimated at $6,500. Staff requests approval of Resolution No. 3067 (Commerce Drive and Sheridan and Lincolnway Project, Supplement #1). Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3067 approving and authorizing the execution of an Addendum to the Master Agency Agreement with the Board of Public Works (Commerce Drive and Sheridan and Lincolnway Project — Supplement #1) (14) Update on Data Realty development. Mr. Kain noted that in July 2011 the Commission made a commitment to cover the cost of the entire Data Realty Fagade enhancement work as part of the land sale agreement. Data Realty is now in its final stages of completing construction of an 25 COMMISSION APPROVED RESOLUTION NO. 3067 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT WITH THE BOARD OF PUBLIC WORKS (COMMERCE DRIVE AND SHERIDAN AND LINCOLNWAY PROJECT - SUPPLEMENT #1) South B Regular 6. NE Redevelopment Commission -ting — August 16, 2012 BUSINESS (CONT.) Economic Development Area .4) continued... approximately $14 million Data Center at Ignition Park. At the Commission meeting on July 26, 2012, staff asked Commissioners to approve an additional $61,312.25 from the AEDA TIF to cover the cost of the fagade metal Panels which had come in higher than expected after two rounds of bidding by the Board of Public Works. There are three spreadsheets below: 1. Data Realty Fagade Expenses: Expenses have been split into two components to ease construction. Data Realty will purchase the supports and install foundations while the Commission purchases the metal panels. Since the Commission is responsible for the total facade cost, the Commission must then cover the cost of supports and foundations in other TIF eligible ways. 2. Commission Participation Till Date: Must equal total facade cost 3. Qualifying Expenses to Address Gap Me al Panel & Screenwall supports, These are attached to the foundation and other materials $566,560.00 existing building These attach to supports on the building facade and Metal Panels & Screenwall $914,755.00 foundations Commission Commitment per MOU is for the entire Total Fa ade Cost $1,481,315.00 cost of the Fa ade. 26 South BE Regular Redevelopment Commission -ting — August 16, 2012 6. NENY BUSINESS (CONT.) B. Airport Economic Development Area 4) continued... ���.... ��,,', 1�5�Uri %�����..zC ry � .r�� .,����, S ,r`1�,�,� fi ✓h XP}. ��; r JiAl Purchase Metal Panels & Screenwall $914,755.00 Actual Award Amount Purchase CRAH unit $347,002.00 Actual Award Purchase Metal Panels & Screenwall $914,755.00 Amount Total Commission Commitment $1,481,315.00 Actual Award Purchase CRAH unit $347,002.00 Amount Gap $219,558.00 Total Commission Commitment $1,481,315.00 ���.... ��,,', 1�5�Uri %�����..zC ry � .r�� .,����, S ,r`1�,�,� fi ✓h XP}. ��; r f �� , .� ;' .r':. Purchase Metal Panels & Screenwall $914,755.00 Actual Award Amount Purchase CRAH unit $347,002.00 Actual Award Amount Gap $219,558.00 Total Commission Commitment $1,481,315.00 Staff will bring back to a future meeting agreements for some of the above mentioned items. Mr. Varner asked if there was a way to determine what was taxable vs. what was not in the overall Data Realty project. Mr. Varner also asked if the total cost of the building could be provided. Mr. Kain responded that he did not have these numbers at present but would be able to provide them to Mr. Varner within a few days. Mr. Davis expressed concerns that the AEDA TIF is being spent quickly and wanted to make sure there would be funds for other needs. Ms. Jones and Mr. Inks assured him that the AEDA TIF receives $11 M each year, $4M of which is reserved for debt service. 27 South B Regular 6. NE 3 C. 111 E. Redevelopment Commission -ting — August 16, 2012 BUSINESS (CONT.) Economic Development Area ) continued... That leaves approximately $7M every year that would be available for other needs. Each year the Commission prioritizes a list of projects. The intent of the TIF legislation is that the TIF funds should be spent each year or returned to the other taxing jurisdictions. est Washington- Chapin Development Area was no business in the West Washington - i Development Area. outh Side Development Area 1) Fellows Street Project Update Mr. Schalliol said that staff plans to schedule a special Commission meeting within the next two weeks to give concerned residents the opportunity to hear a presentation on alternative routes and for Commissioners to hear the concerns of residents. Ms. Phipps will email Commissioners for schedule availability and schedule the meeting. lortheast Neighborhood Development Area here was no business in the Northeast eighborhood Development Area. F. Douglas Road Economic Development Area was no business in the Douglas Road mic Development Area. 28 THERE WAS NO BUSINESS IN THE WEST WASHINGTON- CHAPIN DEVELOPMENT AREA. FELLOWS STREET UPDATE THERE WAS NO BUSINESS IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. THERE WAS NO BUSINESS IN THE DOUGLAS ROAD ECONOMIC DEVELOPMENT AREA. South B Regular 6. G. Redevelopment Commission Ming — August 16, 2012 BUSINESS (CONT.) of Services Contracts COMMISSION RATIFIED THE SERVICES CONTRACTS. pon a motion by Mr. Downes, seconded by Mr. arner and unanimously carried, the Commission fified the Services Contracts. H. gatification of Temporary Use Agreements 1pon a motion by Mr. Downes, seconded by Mr. 'arner and unanimously carried, the Commission 29 COMMISSION RATIFIED THE TEMPORARY USE AGREEMENTS. Commission Role in Service Contract Staff Transaction Contractor Provided Amount Member Vacant Lot Scott Acquisition Witt Appraisal Appraisal $550 Relos Street 18 -8026- Services 1065; 1526 Prairie Ave. Vacai it Lot Scott Acquisition Michaels Appraisal $650 Relos Street 18 -8026- Appraisal 1065; Services 1526 Prairie Ave. 518 R ush Street; Disposition Witt Appraisal Appraisal $850 Relos 700 Block South St Services TKN 18 -3030- 1137; 636 Linco nway East 518 Rush Street; Disposition Michaels Appraisal $975 Relos 700 Block South St Appraisal TKN 18 -3030- Services 1137; 636 Linco nway East pon a motion by Mr. Downes, seconded by Mr. arner and unanimously carried, the Commission fified the Services Contracts. H. gatification of Temporary Use Agreements 1pon a motion by Mr. Downes, seconded by Mr. 'arner and unanimously carried, the Commission 29 COMMISSION RATIFIED THE TEMPORARY USE AGREEMENTS. South Bet Regular N 6. H. 7. PRO 8. The J Redevelopment Commission eeting — August 16, 2012 BUSINESS (CONT.) ified staff approval of the Temporary Use ;reement for use of the 502 W. Western lot by algreens for the Mobile Health Tour on zgust 11, 2012. RESS REPORTS were no Progress Reports. COMMISSION MEETING -xt meeting of the Redevelopment Commission is aled for Thursday, August 30, 2012 at 9:30 a.m. 9. ADJOURNMENT being no further business to come before the elopment Commission, the meeting was ned at 10:50 a.m. Donald ]�. Inks, Director 30 THERE WERE NO PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT Marcia I. Jones, President Com 1200 To: From: Subject: Date: • SOUTH E,6` unity & Economic Development ..1865 City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 Phone 574/235 -9371 Fax 574/235 -9021 Redevelopment Commission Bill Schalliol Summary of Correspondence concerning Fellows Street project August 16, 2012 Over the past several weeks, the Redevelopment Commission secretary has been sent correspotidence to forward to the Commission members. For the purpose of entering the informati n into the record and formally acknowledge receipt of the correspondence, staff has prepared a summary of the letters and attached a copy of each letter to this memorandum. Nancy Morgan - 309 E Chippewa - July 16, 2012 Ms. Morgan expresses a variety of concerns about the project design and scope. Specifically, she focuses here letter on the safety, location, and design of the proposed bike path and about the design of the proposed roadway and its impact on those that will remain. The call of the letter is for reconsideration of the design and impacts of the roadway and the proposed bike path. Matthew Heckman - 4224 Fellows - August 8, 2012 Mr. Heckman expresses concern about the delay in the process and supports the original alignment path moving forward. He notes that the current condition is unsafe for bicyclists and the pathway would be a good amenity. He in this communication, and others that have been received by staff, request that a decision can be made so that all can move forward. Cindy Holderbaum - 422 E Chippewa - July 18, 2012; August 2, 2012; August 3, 2012 Ms. Hold rbaum writes on three occasions to express her support of moving forward with the project a the inter . improver as the St bridge or id concerns if the project does not move forward as proposed. She, and others near ection of Chippewa, Fellows and Teri, know the dangers of the intersection and if cents are not made conditions will worsen. Additionally, the project needs to advance to of Indiana is well under way with its project of building its roadway connection and Fellows south of Ireland Road. There is also concern and frustration expressed that because o the delay in advancing the project, the continued uncertainty in the project has caused an impact on quality of life and the condition of neighborhood relations.