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HomeMy WebLinkAbout11-02-07 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULED REGULAR MEETING November 2, 2007 10:00 a.m. Presiding: Marcia I. Jones, President 1. ROLL CALL Members Present: Legal Counsel: Ms. Marcia Jones, President Mr. Karl King, Vice President Mr. Greg Downes, Secretary Mr. Hardie Blake, Jr. Mr. Ken Peczkowski Mr. Charles S. Leone, Esq. Mr. Shawn Peterson, Esq. 403 E. Madison Street South Bend, Indiana Redevelopment Staf£ Mr. Don Inks, Director Mr. Jeffrey Gibney, Executive Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Ms. Jennifer Laurent, Economic Development Specialist Mr. Nicholas Witwer, Economic Development Specialist Others Present: Mayor Stephen Luecke Mr. Tom Price Ms. Catherine Hostetler, Historic Preservation Ms. Jamie Loo, South Bend Tribune Ms. Charlotte Sobel, South Bend Heritage Foundation Mr. Greg Hakanen, Notre Dame Ms. Cathy Catlin, CB Richard Ellis Ms. Elizabeth Leonard, Comm & Econ Dev Ms. Debrah Jennings, Property Manager Mr. Marty Wolfson, Community Forum for Economic Dev Dr. Erskine Jones, Sweet Home Baptist Church Mr. Juan Manigault Mr. James Frick Ms. Rita Kopala Ms. Martha Lewis Mr. Richard Hill, Baker & Daniels Mr. Richard Nussbaum II, Esq. Mr. William Eagan Mr. Dave Compton, Kite Group Ms. Ashley Ottesen, Kite Group Ms. Pam Richey Mr. Ed Richey South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 1. ROLL CALL (CONT.) Others Present continued... Ms. Vickie Gabbard Ms. Peggy Nash Ms. Amy Hill Ms. Marguerite Taylor Mr. Ronald Joers Mr. Anthony Trent Mr. David Clifton Mr. Corey Cressy Ms. Sharon Henderson Mr. Dave Henderson Ms. Pauline Medhurst Mr. Robert Medhurst Mr. Edward Coar Ms. Irene Coar Ms. Katie Warner Ms. Autumn Aggeler Mr. Brett Gies Mr. Steve Peterson Ms. Amy Hardin Mr. Paul Hayden Mr. Chris Wood Mr. Ross Wood Mr. Christian Davey Mr. Jack Seifer Ms. Ami Jaworski Mr. Dean Bergeman Mr. John Hagen Ms. Nancy Sulok Mr. Bill Stenz Ms. Oletha Jones Mr. John Affleck Graves Mr. Dan Blacketor Mr. Paul Phair Ms. Shelly Baumgartner Mr. Jim Stoll Ms. Susan Mahoney Mr. Paul Van Lan Mr. Raymond Miller Mr. Richard Ms. Lynn Patrick 2 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, October 19, 2007. Mr. Peczkowski made a motion to reconsider and enter a correction into the Minutes on pages four, five and six. He noted that if an error was made in the acceptance of a petition, it is the parliamentary right of a member of the voting majority to request that the motion to approve be reconsidered. It was stated by our Commission that the petition is objecting to something for which there is no plan. It implied that those circulating the petitions were paying credence to rumors. Mr. Peczkowski had drafts, one confidential, that were given to Commissioners which include a point eight stating nothing but demolition intended for the Fat Daddy's project; there was no mention of the possibility of rehabbing. He noted that all Commissioners received this draft dated August 8. Then the same statement was repeated in the Mayor's press release of August 17. Mr. Peczkowski wanted to accept the petition again, however without the caveats, and to apologize for the dismissive tone with which the petition was originally accepted by the Commission as if it were a case of a petition being presented based on rumor. Mr. King noted that the Minutes state, "So far no decision has been made to demolish the buildings." Ms. Jones noted that that is, in fact, correct. The Commission has not made a decision one way or the other about demolition of Fat Daddy's. She believed that was the spirit of the statement that was made at the October 19 meeting. While rumors and plans by individuals outside of this Commission may have been stated or made or published, this five-member Commission which has the authority to make that decision, has not made that decision. It hasn't even entertained South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 2. APPROVAL OF MINUTES (CONT.) A. continued... conversation about demolition. Mr. Leone noted that the motion made is not a proper motion as part of consideration of the Minutes of the October 19 meeting. The question with respect to the Minutes is whether the Minutes accurately reflect what was said and what was done. He suggested that Mr. Peczkowski could bring the topic up under New Business. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, October 19, 2007. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, OCTOBER 19, 2007 Redevelopment Commission Claims submitted November 2, 2007 for approval. 324 AIRPORT AEDA Meadowbrook Golf Group, Inc. 8,000.00 City of South Bend 7,216.83 Wightman Petrie 1,700.00 Jerome E Michaels, MAI 350.00 Meridian Title Corporation 195.00 Selge Construction Co., Inc. 51,000.75 Selge Construction Co., Inc. 113,049.89 Brick/Olive Rd construction St. Joseph County Treasurer 2,961.05 414 SAMPLE EWING GENERAL Christopher B. Burke 533.00 420 FUND TIF DISTRICT-SBCDA GENERAL Ampco System Parking 2,115.26 City of South Bend 1,878.84 AT & T 32.55 NIPSCO 26.25 4 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 3. APPROVAL OF CLAIMS (CONT.) 430 FUND SOUTH SIDE DEVELOPMENT St. Joseph County Treasurer Meridian Title Corporation Total 1,820.44 250.00 $ 191,129.86 Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted November 2, 2007, and ordered checks to be released 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS Mr. Inks asked that Item 6.G.(5) be added to the agenda. There was no objection and the item was so added. Ms. Jones noted that there are several public hearings on the agenda, She reviewed the Public Hearing procedures for the benefit of all present. Mr. Peterson noted that there has been a tentative agreement to provide the funding to widen Douglas Road. Wells Fargo has yet to provide a final term sheet. We still have our construction contract that we are waiting to award and are unsure how long the contractor will wait. Mr. Peterson asked that the Commission again open the public hearing on Resolution No. 2391, continue it, and recess and reconvene the entire meeting to consider all items on the agenda related to the Douglas Road widening until early next week. The Commissioners agreed to meet again Thursday, November 8, 2007 at 10:00 a.m. in Room 1308 of the County-City Building to reconvene this meeting and consider the Douglas Road items. COMMISSION APPROVED THE CLAIMS SUBMITTED NOVEMBER 2, 2007, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 5. OLD BUSINESS (CONT.) A. Douglas Road Economic Development Area (1) Commission approval requested for Resolution No. 2390 authorizing the issuance of City of South Bend, Indiana, Redevelopment District Tax Increment Revenue Bonds of 2007. (Widening of Douglas Road) Item S.A(1) was tabled. ITEM 5.A(1) was TABLED (2) Public Hearing on Resolution No. 2391 appropriating the proceeds (including investment earnings thereon) of the Redevelopment District Tax Increment Revenue Bonds. (Widening of Douglas Road) Mr. Jones reopened the public hearing for PUBLIC HEARING ON RESOLUTION No. 2391 whoever wished to speak regarding Resolution No. 2391. PAUL PHAIR: Holladay Properties, 227 S. Main St. I actually was not sent here to speak on this issue. My bosses are taking care of this. I've only heard rumors and whispers around the office, so I unfortunately do not shed much light on this. Just so everyone knows. We'll have a clearer picture next Thursday. There was no one else who wished to speak. at this time regarding Resolution No. 2391. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission voted to continue the public hearing and to reconvene the current meeting and this public hearing on November 8, 2007 at 10:00 a.m. in the Board of Public Works COMMISSION VOTED TO CONTINUE THE PUBLIC HEARING AND TO RECONVENE THE CURRENT MEETING AND THIS PUBLIC HEARING ON NOVEMBER 8, 2007 AT 10:00 A.M. IN THE BOARD OF PUBLIC WORKS MEETING ROOM, 1308 COUNTY-CITY BUILDING. ALL ITEMS RELATED TO THE DOUGLAS ROAD WIDENING WERE ALSO TABLED 6 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 5. OLD BUSINESS (CONT.) A. Douglas Road Economic Development Area (2) continued... Meeting Room, 1308 County-City Building. All items related to the Douglas Road widening were also tabled. (3) Commission approval requested for Resolution No. 2391. Item S.A(3) was tabled. ITEM 5.A(3) was TasEED. 6. NEW BUSINESS A. Public Hearing (1) Public Hearing on Resolution No. 2392 authorizing the execution of a Lease for certain land and public improvements on behalf of the City of South Bend, Indiana, and regarding other related matters. Mr. Inks asked that the following items be entered in to the record: (1) A copy of the Notice of Hearing (2) A copy of Resolution No. 2392; (3) An affidavit from Carol Smith of the South Bend Tribune that the notice of hearing was published in that newspaper on October 19, 2007; (4) An affidavit from Richard Andrysiak of the Tri-County News that the notice of hearing was published in that newspaper on October 19, 2007. Mr. Inks reviewed the scope of the Eddy Street Commons project which the Lease authorizes in Resolution No. 2392. The Eddy Street Commons Development is proposed to be a mixed use development encompassing 23 acres located in South 7 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (1) continued... Bend, Indiana adjacent to the University of Notre Dame campus. This mixed use development is proposed to include the following: 90,000 square retail shops, 268 apartment homes, 75,000 square feet of office, one full service hotel with conference facilities and three floors of condominiums on top, one limited service hotel, 189 condominium homes in four different product types in addition to those on the top three floors of the full service hotel, open space and a 1,281 space parking structure. This proposed $222 million private/public development is anticipated to create 779 jobs during the build out timetable and an additiona1432 full time jobs upon completion. Over a ten year period after completion, the total economic impact is proposed to be over $500 million creating over 1,100 new jobs with projected household earnings of over $88 million. Mr. Inks noted that the schedule of the various steps leading up to the bond sale are as follows: Assuming approval of Resolution No. 2392 today, the Common Council would consider the bond, taking final action on it on November 26. Then the staff would make a presentation to the Local Government Property Tax Control Board on December 13 with approval anticipated January 3, 2008. We would expect to sell the bonds about February 12. Then we would come back to the Commission to amend the Lease to reflect the actual terms of the bond South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (1) continued... sale. The Lease being considered today has terms that anticipate worst case market conditions so that when we take the bonds to market we have parameters in which we have authority to sell the bonds. The market conditions will be better than we anticipate here; therefore, following bond sale the Lease would be changed to reflect the actual terms of the bond sale. The semi-annual payments will be smaller than anticipated in today's Lease, and the term may even be shorter than the anticipated 25 years. We would expect to have proceeds available by February 26, 2008. Mr. Inks noted that the Tax Increment Financing proceeds are proposed to support the development of the following infrastructure: A 1,281 space parking structure that will serve multiple aspects of the proposed development. In addition Eddy, Burns, Georgiana, Duey, and Napoleon Streets will be either reconstructed or extended as part of the overall development, including the residential development. Specifically, Napoleon Street will be extended to the East to SR 23 from its current end at Eddy Street. The proposed uses of these funds also include the upgrading and replacement of water mains, sanitary and storm sewers as well as site preparation and the extension and upgrading of electrical, telephone and high speed Internet services to serve this development. 9 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (1) continued... The total private investment expected in this project is $185,000,000. The public investment in this project is primarily related to the parking garage at $22,000,000. There are streets and utilities in the bond for another $6,400,000. We will also do some ash removal for $1,300,000 for a total public investment from the net bond proceeds of $30,000,000. An additional $6,700,000 of city cash will be used to complete other street projects in the project area. The ratio of public to private expenditures for the development would therefore be five to one. Mr. Inks noted that we have looked at the cash flow in terms of being able to service the lease payments on the bond, as well as repay the city's cash over time. At this point we are looking at debt service on the bonds of approximately $3,100,000 and TIF revenue to be generated from the project of $4,100,000. There appears to be adequate coverage to repay the bonds and the cash infusion from the city for the project. Mr. Inks also noted that the University of Notre Dame has made significant investment in the Northeast Neighborhood over the past several years, including property acquisitions, the Edison Road realignment, the DeBartolo Performing Arts Center, the Innovation Park, the Robinson Center, and the support they have given to the Northeast Neighborhood Revitalization Organization. That investment comes to $39,000,000 over the past few years. 10 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (1) continued... Mr. Hill described the actions the Commission is being asked to take. On October 9 the Commission took action to approve the form of the Lease. On October 17 the Redevelopment Authority passed a resolution indicating its intent to issue bonds to fund the infrastructure that would be leased to the Commission and approved the form of the Lease. The Lease would provide for a maximum annual rental of $3,717,000 for a maximum Lease term of 25 years. The lease rental payments would be secured by both the commercial and residential tax increment that would be generated by the project. Resolution No. 2392 approves the form of Lease, authorizes execution of the Lease upon approval by the Department of Local Government Finance, authorizes the filing of an ordinance with the Common Council, and authorizes a petition to be filed with the Department of Local Government Finance (DLGF) which would require a hearing by the Local Government Property Tax Control Board. That process looks at the financing structure to assure that there is adequate tax increment revenue available to make the lease revenue payments. Ms. Jones opened the public hearing for PusLic HEARING oN RESOLUTION No. 2392 anyone who wished to speak regarding Resolution No. 2392. JACK ROBERTS: 403 E. Madison St. I'm really here as president of the Northeast 11 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (1) continued... Neighborhood Revitalization Organization (NNRO). I would like to share with you that we support this resolution. We believe this is one of the most important developments in the Northeast Neighborhood that has occurred in, perhaps, its history. The NNRO is a composite of non-profit entities in the community and neighbors in the Northeast neighborhood. The non-profit organizations are the University of Notre Dame, St. Joseph Medical Center, Memorial Hospital and Madison Center. Working with the City of South Bend and the neighborhood, we have a Board of Directors that is comprised of representatives of the non-profit organizations and the neighborhood. So, this is a joint non-profit/neighborhood organization. We believe this project is very important and it clearly ties back to our plan for the neighborhood that we approved in 1998. It is the most ambitious project that we have seen, even with all the wonderful things that have happened in the Northeast Neighborhood in the past few years. This is a very key project for the Northeast Neighborhood. We are interested in the Triangle project, which is a new development of more than sixty homes with a value greater than $SOM. We think this is very important in terms of revitalization of the whole Northeast Neighborhood, in addition to the Eddy Street Commons project. Without this bond issue we would not be able to do our project. The bond issue provides funding for infrastructure that is needed for the neighborhood, including reconstructing 12 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (1) continued... and extending parts of Burns, Dewey, Georgiana and Corby Streets, upgrading and replacing water mains and sewers, extending and upgrading electrical, telephone and high speed Internet service. Without these infrastructure improvements we would not be able to complete our project. We are very eager to have this project move forward. I think Mr. Inks has already talked about the economic impact of this project. We believe that the Northeast Neighborhood residents and future citizens will benefit from the project just by its being there, but there will be employment opportunities and enhancements that will be great for the neighborhood. We think for these reasons that household earnings will increase in the Northeast Neighborhood and that people will move or relocate to the Northeast Neighborhood and will be a part of the whole project. I know that there is a lot of private investment and some public investment for the Eddy Street Commons project. The private investment far exceeds the public investment at about five to one. We think this is a good combination of private and public partnerships, and we would like to see this resolution approved. MR. AFFLACK GRAVES: Executive Vice- President of the University of Notre Dame. Room 400, Main Building, Notre Dame, IN 46556. I am very pleased to be here this morning to offer Notre Dame's support for this project. It has been a long time coming. It was almost 30 years ago that the Northeast 13 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (1) continued... Neighborhood Council began working on ways to restore the vibrancy of this area when South Bend was at its peak as a manufacturing center. This request for financing to allow the development of Eddy Street Commons and redevelopment of the Triangle residential area is a culmination of the neighborhood council's efforts and those of its many allies. Notre Dame has not always been engaged in the affairs of South Bend as it is on this project, but as we have grown as a university our path has become increasingly intertwined with that of our community. Under our last president, Father Edward "Monk" Malloy, that attitude changed. Notre Dame's commitment to being both a good neighbor and a good partner has continued and been reinforced under our current president, Father John Jenkins. Quite simply, if South Bend does not thrive, Notre Dame cannot achieve its ambition of being one of the leading universities in the country and in the world. It was with this in mind that we joined with the city and several other institutions in the year 2000 to create the Northeast Neighborhood Revitalization Organization. Since then, the NNRO has worked hand in hand with the Northeast Neighborhood Council on a plan to revitalize this area. This proposal before you is essential to bringing these efforts to fruition. The TIF will finance two elements vital to this neighborhood. As you have heard already, the first is infrastructure for the Eddy Street Commons -the parking garage, reconfiguration of existing streets, 14 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (1) continued... construction of new ones and utility work necessary to support the project. Redevelopment, like the Eddy Street Commons, simply cannot happen without this type of financial support. Equally important, the TIF would also finance the infrastructure of the Triangle, which will replace a seriously blighted area with new single-family housing, 30% of which will be reserved for low to moderate income families and sold under affordable housing programs. Notre Dame strongly supports these efforts because of a vital role that the Northeast Neighborhood plays with both the life of our overall community and that of the university itself. We want to see this area redeveloped and revitalized. We want to see a vibrant, commercial civic life in this area. And, we need this project to succeed because it is crucial to our attracting the kind of students and faculty that we need to create a great university. The TIF will pay for the infrastructure installed today with future tax increment that would not exist except for this project. We feel that this is an appropriate contribution by the city, which will enhance the contribution already being made to the efforts by the university. Those contributions include the following. We voluntarily annexed to the city and put on the tax rolls twenty six acres of land that had previously been part of the campus. This was in anticipation of not just the Eddy Street Commons but also other collaborative ventures, such as the Innovation Park. We have assembled land for Eddy Street 15 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (1) continued... Commons and other initiatives in the Northeast Neighborhood at a cost of over $llM, with significant expenditures to come. We have straightened Angela Boulevard and Edison Road at a cost of $4M. We are now working on a town commons, a welcoming entryway to our campus that will be available to everyone, just south of the DeBartolo Performing Arts Center and across Edison Road from the Eddy Street Commons. That will cost $3M and should be ready to be dedicated next summer. Notre Dame has been here for 165 years and, God willing, will be here for another 165 years at least. So will the Northeast Neighborhood for another 165 years-that makes us long term partners. We know that our future intertwines with the success of this area. We hope this will be the start of a new lease of life on that area and we hope you will see fit to support it. MAYOR STEPHEN LUECKE, Mayor, City of South Bend, 227 W. Jefferson, South Bend. I will speak briefly. I echo the comments made by Mr. Roberts and Mr. Graves. This is an extraordinary project, an extraordinary opportunity for this community, for the Northeast Neighborhood, and for the university. It has really been a great example of collaboration among so many different partners, and in particular, input from neighbors as we move forward with this. I just want to point out briefly, I believe the city's role in the development is providing infrastructure that encourages the private sector. The infrastructure being 16 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (1) continued... provided here is streets, water and sewer lines, communication, and a parking structure. I will note that the parking structure will have property taxes paid on it because of the use of the parking structure as this development moves forward. To me that is also a very positive component of the proposal before us. Finally, the ratio of private to public, 5 to 1, fits within a very reasonable and justifiable range for public investment to spur that private investment. I ask your approval of the documents before you so that we can continue moving forward. This has been a very complicated project, but great partnerships with all of you involved. We look forward to being able to complete the details so we can get the shovels in the ground and start bringing this out of the ground. Thank you. MARGUERITE TAYLOR, an original board member of the NNRO, and I have been a 30 year member of the Northeast Neighborhood Council. One of the things that the Council has done through this entire project is watch to make sure our neighborhood is not gentrified, and that has not happened. It is important to us that people who live in the neighborhood can continue to afford to live in our neighborhood. We talk about the Robinson Center that was an investment by the University and Mr. Afflack Graves is so right that the University has become a partner. That hasn't always been the case. We used to just fight each other about stuff. The Northeast Neighborhood Council isn't 17 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (1) continued... afraid to take on the university; we have taken on the State of Indiana to keep State Road 23 from dividing our neighborhood like it does out by Martin's. We will not have the road come down the middle of our neighborhood and divide it like that. So, the neighborhood council got together and really stopped that process. We want it back on the table now because it is fine. We urge you, as a neighborhood, to approve this because it is vital to revitalization of the Northeast Neighborhood. Thank you. SUSAN MAHONEY, I live two blocks east of Notre Dame and I have lived here for 15 years. I agree with her (Ms. Taylor) that gentrification not happen. My daughter lives just off of Eddy, and it has a neighborhood feel to it. Yes, the houses are right up to the street and some aren't in good order but, the people that are living there are trying to keep them in good shape. It might not be something that everyone might want to live in, but it is affordable; so, I would hate to see all of that ripped out and put in for more high income people. So, that assured me. I am also concerned that this project not take a lot of focus off development downtown, like for instance, University Park Mall many years ago took all the shopping out there and everything in Mishawaka and South Bend were a blighted area for 20-25 years or more. So I would hate to see this project to harm to downtown South Bend. So, those are my two issues. 18 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (1) continued... Ms. Jones asked if anyone else wanted to speak. No one else wished to speak regarding Resolution No. 2392. Ms. Jones closed the public hearing. (2) Commission approval requested for Resolution No. 2392. Mr. Peczkowski said he saw that $30M will cover the parking garage at $22.2M and streets at $6.4M, and ash removal at $1,300,000. He wondered where the ashes were coming from. Mr. Inks said that is part of the site improvements. He thought it had been fairly well known in the community that that area had been used to dispose of ash, which is not a suitable building material. It needs to be removed from the site and the site needs to be back filled so that the parking garage and the balance of the development can be build there Mr. Peczkowski's second question was about the debt service at $3,742,000 over a period of 20-25 years. That totals approximately $74M, yet the bond is $30M. Mr. Inks responded the lease payments include principal and interest, so the principal proceeds from the bond will be used to construct the project, but when you make the repayments you will be paying back that principal plus interest. Ina 20-25 year term, you are paying typically twice or more what you are borrowing in principal. 19 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (2) continued... Mr. Peczkowski responded then, that the $74M was a more accurate figure than the $36M as far as actual money paid. Mr. Inks responded that in terms of cash outlay, that is correct; in terms of value today, the $36M is the accurate number. Mr. Peczkowski said he was not opposed to this but wanted others to realize the actual cost over the years would mean our public to private investment would be more on the order of 2.5 to 1 rather than five to one. Upon a motion by Mr. King, seconded by Mr. Downes, and unanimously carried, the Commission approved Resolution No. 2392 authorizing the execution of a Lease for certain land and public improvements on behalf of the City of South Bend, Indiana, and regarding other related matters. (3) Public Hearing on Resolution No. 2383 amending the West Washington-Chapin Development Area Development Plan. (Contracting the boundaries) Mr. Inks noted that the public hearing file is complete and asked that the following items be entered in to the record: (1) A copy of the Notice of Hearing; (2) A copy of Resolution No. 2383; (3) An affidavit from Carol Smith of the South Bend Tribune that the notice of hearing was published in that newspaper on October 19, 2007; (4) An affidavit from Richard Andrysiak of the Tri-County News that the notice of hearing was published in that newspaper on October 19, 2007. (5) A COMMISSION APPROVED RESOLUTION NO. 2392 AUTHORIZING THE EXECUTION OF A LEASE FOR CERTAIN LAND AND PUBLIC IMPROVEMENTS ON BEHALF OF THE CITY OF SOUTH BEND, INDIANA, AND REGARDING OTHER RELATED MATTERS 20 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (3) continued... statement from Mr. Nicholas Witwer that on October 19 the affected property owners and registered neighborhood associations were sent notice of the public hearing; (6) A statement from Mr. Witwer that on October 19 of this year the taxing units of St. Joseph County were sent notice of the public hearing. The mail was checked prior to the meeting and there were 0 written remonstrances received. Mr. Witwer noted that Resolution No. 2383 amends the West Washington-Chapin Development Area boundaries. It removes from the WWCDA the Hurwich and Marycrest areas which were added to the Airport Economic Development Area by Resolution No. 2351. It also removes about half a block bounded by Taylor, Wayne, William and the alley between Wayne and Western on the south. That half block is intended to be added to the South Bend Central Development Area for the Coveleski Neighborhood planning efforts. Ms. Jones noted that both of these areas are currently in a development area and are being moved to a different development area. There is no new area being made part of a development area. Mr. Witwer confirmed that that is correct. Mr. King noted that the portion moved from the West Washington-Chapin area to the Airport Economic Development Area is more consistent with the plans and programs for 21 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (3) continued... the Airport Economic Development Area than those for the West Washington-Chapin area. Mr. Witwer agreed. The Hurwich and Marycrest areas are more industrial in nature than the remaining West Washington area which is mostly residential. Ms. Jones opened the public hearing on Resolution No. 2383 for whoever wished to be heard. MS. CHARLOTTE SOBEL, South Bend Heritage Foundation, 803 Lincolnway West. We work, as all of you know, in the Near West Side and a portion of these are coming out of the West Washington-Chapin Development Area. We fully support it because we think the anticipated planning of part of downtown and what's going to happen down there is absolutely the best thing that can happen. I also want to thank the Commission for redefining the boundaries of the Airport TIF to get in the far western portions of Lincolnway West. Thank you very much. There was no one else who wished to speak regarding Resolution No. 2383. Ms. Jones closed the public hearing. (4) Commission approval requested for Resolution No. 2383. Mr. Downes made a motion to approve Resolution No. 2383 amending the West Washington-Chapin Development Area PUBLIC HEARING ON RESOLUTION No. 2383 COMMISSION APPROVED RESOLUTION NO. 2383 AMENDING THE WEST WASHINGTON-CHAPIN DEVELOPMENT AREA DEVELOPMENT PLAN. (CONTRACTING THE BOUNDARIES 22 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (4) continued... Development Plan. Mr. Blake seconded the motion. The vote was four in favor. Mr. Peczkowski abstained. The motion carried. (5) Public Hearing on Resolution No. 2384 revising the appropriation of monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2007 and ending December 31, 2007, including all outstanding claims and obligations, fixing a time when the same shall take effect. (Michigan St. Shops Budget) Mr. Inks noted that the public hearing file is complete, containing the following items. (1) A copy of the Notice of Hearing; (2) A copy of Resolution No. 2384; (3) An affidavit from Carol Smith of the South Bend Tribune that the notice of hearing was published in that newspaper on October 19, 2007; (4) An affidavit from Richard Andrysiak of the Tri-County News that the notice of hearing was published in that newspaper on October 19, 2007. Ms. Leonard noted that Resolution No. 2384 adjusts the original budget for the first floors of the Leighton and Wayne Street garages, the plaza at Leighton, and the Michigan Street Shops. The staff at CB Richard Ellis has worked hard to analyze all of the changes, allowing for adequate resources to take care of the necessary maintenance and operate the facilities up to Commission standards. 23 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (5) continued... Mr. Peczkowski observed that the grounds maintenance has gone up significantly from 2006. He asked if increased labor accounts for the changes. Ms. Cathy Catlin responded that the biggest chunk of that increase is snow removal. There was a significant amount of snow last winter. There was also an unforeseen problem with pigeons. Mr. Peczkowski asked if the tenants pay for the increase in their CAMS. Ms. Catlin responded that, yes, the CAM is reconciled in the first quarter. Ms. Jones opened the public hearing for whoever wished to be heard regarding Resolution No. 2384. MR. JUAN MANIGAULT, 1623 Kevin Ct. My first question is, will any of the tenants along the Michigan St. corridor be impacted by this resolution? MS. CATLIN: Yes, like I just said, we charge them back the Common Area Maintenance. So, we estimate what they are going to be for the budget year, then we go back to them after the budget year is closed and make adjustments. Sometimes it's a credit, sometimes it's an additional charge. MR. MANIGAULT: I've read previously. I don't have it with me here. I want to ask specifically about LePeeps Restaurant. It's a restaurant I frequent a lot. My understanding is that they are being forgiven $21,000 on the 24 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (5) continued... CAM. I just want to confirm that. MR. INKS: The action taken at the last meeting was to waive $21,000 on their account. MR. MANIGAULT: Why was that? What was that decision made to waive a private company's CAM, because did any other tenant in the downtown area get a forgiveness from the CAM? MR. INKS: We look at all of these on an individual basis. In this particular case, the business decision was that, given the value of LePeep in the downtown, they were one of the original stores in the Michigan Street Shops and they have really helped us to fill the downtown. We looked at the lease that we had and the typical market terms in the lease for a restaurant and found that we were, in fact, at the very high, if not above the high end of that. It would be appropriate to adjust those rates down. We also looked at what it would cost us from a business standpoint to backfill that space, should LePeep not be there any longer. And with the vacancy, the improvement costs of any tenant moving in, the recommendation of staff, from a business standpoint, was that it made sense to consider the five-year renewal for LePeep, adjusting the rental rates, and looking at waiving the $21,000. MR. MANIGAULT: Doesn't that give LePeep an unfair business advantage 25 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (5) continued... considering other restaurants in the downtown? MR. INKS: I don't think that gives LePeep an unfair business advantage. I'm not sure of all the rates that other restaurants are paying in the downtown, but our understanding of the market conditions were that our lease was at the high end and this effectively put us back into conformance with the market. MR. MANIGAULT: Who owns the Leighton Plaza, on which those shops and restaurants are located? MR. INKS: The Redevelopment Authority, but it is leased to the Commission. MR. MANIGAULT: So it's a public entity. MR. INKS: Yes. MR. MANIGAULT: And so tax dollars, paid by the citizens of our city, are in effect subsidizing LePeep. MR. INKS: I'm not sure how to comment on that. From our standpoint it was a business decision to get back to a lease that was in conformance with the market for restaurant space in the downtown. MR. MANIGAULT: Did any of the other shops there get any consideration because you have some retail shops in that same plaza. Did any of those shops get 26 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (5) continued... consideration in the same way that LePeep got a consideration here. MR. INKS: No. MR. MANIGAULT: So, in a sense taxpayers are subsidizing LePeep? MR. KING: Actually, Don, I don't think that's exactly right. The leases don't all come up for renewal at the same time. Each time somebody's lease comes up, we do go through a discussion. There have been some other instances of lease renewals where we renewed the lease on more favorable terms than what the tenant had before. Again, recognizing the market rate for the type of space that's being leased in the area that we are. You get advice on that from realtors who represent us. Each time a new lease comes up with one of our existing tenants, we do reconsider all of the terms. We've had other tenants ask us for consideration of a different kind. As Don said, each deal is a little bit different. One of the things we try to do is see to it that we have an arrangement that fits the market, that works for the business that's in there, and also that works for the Redevelopment Commission. One of the things that should be noted about this LePeep lease is that on the one hand we did waive the CAM fees, but on the other hand, we got into it the provision that wasn't in there before which provides an upside potential. In the past, we've just had a flat rate of rent. Now we have a provision in the 27 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (5) continued... lease that when LePeep achieves a dollar volume of gross revenue over a certain amount, there's a plus factor that comes to the Commission in the form of additional rent. So, as they do better, we do better. My recollection, during the time that I've been on the Commission, is that each time a lease comes up, we have reexamined the terms and discussed with each owner what's going to work well for the renewal period. Did that answer your question? MR. MANIGAULT: Well, it just gives more information. Two more questions. Do the tenants pay property taxes? Private tenants in a public building? MR. INKS: Yes. MR. MANIGAULT: My last question is, when will the city move this facility off the public roll and allow a private developer to own the facility, because the city shouldn't be in the business of managing property? MR. INKS: We have already, I think, started the process of looking at how we could consider divesting ourselves of that retail space. We also have some retail space in the Wayne Street garage. It's a little bit complicated because a public entity owns the whole parking garage, the plaza, and the Michigan St. Shops. Obviously, it's a public garage and we' d like to see it stay public. The plaza is a public area; that would stay public. So we need to find some way to split 28 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (5) continued... off the retail area of that. Shawn has been working to try and figure that out. If we can, at least from a staff perspective (we haven't brought this to the Commission yet for consideration), but we would look at whether it's possible to split off that real estate for possible sale, or perhaps look at a master agreement for leasing so that we would effectively put that in the private sector's hands. SUSAN MAHONEY, Charles St. Just listening to your discussion, I had not known anything about this. But I think it still might be a good idea to keep it in the public sector because part of your goal that you talk about through this is cooperation between public and private. The public needs to get smarter about how to do it and to increase the likelihood of entrepreneurial small businesses. It might be a good start-up place. I know there used to be development... my background is from the late 70s and early 80s in the public sector. But, it might be a good way, like you said, where you have a master lease that has those conditions in there that encourages competition in small businesses rather than treating it like purely private. You're treating it almost like an incubator. Because I think that the public has some interest in that. We don't need to have everything in the private sector. The private sector doesn't always do the best for us, for instance the Walmart. It doesn't do the best for us. 29 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (5) continued... MR. MANIGAULT: I would respectfully disagree. The private sector is private investment. What's lacking in our city is private investment. We have too much public investment in the City of South Bend and that's one of the reasons our property taxes are so high. We need to move some of these properties off of the city's rolls and back into the private sector where it's market driven. It should be market based and market driven. MR. KING: You did get an answer to your question earlier that these people do pay property taxes. You understood that? MR. MANIGAULT: I understood that. MS. MAHONEY: But they're paying property tax, and the Chamber of Commerce has gotten it so that the industry pays less property tax and private people pay more property tax. Businesses have it both ways. I'm not against business, but I'm against private businesses running everything, for instance Walmart. Walmart has destroyed so many communities in this country. There being no one else who wished to be heard concerning Resolution No. 2384, Ms. Jones closed the public hearing for whatever action the Commission wished to take. 30 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (6) Commission approval requested for Resolution No. 2384. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved Resolution No. 2384 revising the appropriation of monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2007 and ending December 31, 2007, including all outstanding claims and obligations, fixing a time when the same shall take effect. (Michigan St. Shops Budget) (7) Public Hearing on Resolution No. 2385 amending the South Bend Central Development Area Development Plan. (Expanding the boundaries at the southwest corner and adding properties from that area to the Development Plan's Acquisition List) Mr. Inks noted that the public hearing file is complete and asked that the following items be entered in to the record: (1) A copy of the Notice of Hearing; (2) A copy of Resolution No. 2385; (3) An affidavit from Carol Smith of the South Bend Tribune that the notice of hearing was published in that newspaper on October 19, 2007; (4) An affidavit from Richard Andrysiak of the Tri-County News that the notice of hearing was published in that newspaper on October 19, 2007. (5) A statement from Mr. Bill Schalliol that on October 19 the affected property owners and registered neighborhood associations were sent notice of the public hearing; (6) A COMMISSION APPROVED RESOLUTION NO. 2384 REVISING THE APPROPRIATION OF MONIES FOR THE PURPOSE OF DEFRAYING THE EXPENSES OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2007 AND ENDING DECEMBER 31, 2007, INCLUDING ALL OUTSTANDING CLAIMS AND OBLIGATIONS, FIXING A TIME WHEN THE SAME SHALL TAKE EFFECT. (MICHIGAN ST. SHOPS BUDGET 31 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... statement from Mr. Schalliol that on October 19 of this year the taxing units of St. Joseph County were sent notice of the public hearing. (7) The mail was checked prior to the meeting and there were 0 written remonstrances received. Mr. Schalliol noted that Resolution No. 2385 expands the South Bend Central Development Area to include the entire Coveleski Neighborhood Planning Area and to add twenty-one properties to the acquisition list. The boundary change will fill in the gap between the existing South Bend Central Development Area boundary and the West Washington-Chapin Development. This gap has existed for a number of years and was bridged when the SBCDA boundary was expanded to include the Studebaker Museum site. By adding this area into the SBCDA, TIF funds can be used for planning purposes, acquisition and demolition of property, and infrastructure improvement and upgrade. Mr. Schalliol noted that the twenty-one parcels to be added to the acquisition list are related to different efforts in the planning area. The majority of the parcels are related to the Gates Chevy World site, generally located at the southwest and southeast corners of Lafayette and Western. These parcels are key elements to the Coveleski Neighborhood planning area. The Cleo Washington parcels consist of a single family house located on the southeast corner of 32 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... Wayne and Taylor. The property is a key parcel in a proposed residential infill project or could serve as a structure to be relocated to another corridor in the event that the master planning suggests another use for the Taylor St. properties. The Center City housing parcel is a property outside of the Coveleski Neighborhood planning area, but it's a property that the owner wants to donate to the city through the Redevelopment Commission. The parcel is adjacent to land owned by WSBT and would be used as a development site within the WNIT project coming to downtown. It is a dilapidated structure that's been boarded up for years. The last parcels are properties immediately adjacent to the Gates properties, owned by Chris Wood. It is the former synagogue on William St. We would propose to save the synagogue, perhaps moving it to another location within the planning area. Mr. Schalliol noted that staff is requesting that these properties be added to the acquisition list, with the potential to be acquired at some time in the future. MR. PECZKOWSKI: The way that I understood the project, we're going to reconfigure the entrance to the ballpark via the Western and Lafayette corner? That will be the primary entrance, as opposed to South and Taylor Streets? MR. SCHALLIOL: Yes. To better enhance the Cove and allow for some development 33 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... opportunities. MR. PECZKOWSKI: If that's the long term intention, to reconfigure it that way, I' m not seeing the Cleo Washington properties as crucial. As people come into the stadium, that particular corner is not going to be affected by any traffic. MR. SCHALLIOL: The larger planning area that we're going to examine would allow for a variety of different projects within the project area: some residential, smaller scale, single family residential housing infill projects; some denser multi-family units, perhaps. Maybe some mixed development concepts, so there are a variety of different projects in this area; it's not just the new entrance to the ballpark. MR. PECZKOWSKI: The total project looks like we're going far a-field of just retail on Western, doing some residential within the neighborhood, reconfiguring with the wish list of perhaps remodeling the ballpark as well. This seems huge. Why are we taking this on ourselves? I can see, in some cases, parts of some of these things being in the project, but it almost seems like we're overstepping our skills by adding too many properties to the city list, which already has lots of properties being taken off the tax rolls. MR. GIBNEY: Executive Director, Community & Economic Development: I'd be pleased to answer that. It really is the 34 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... natural boundaries for the planning process. We would assume that before the planning process has been completed, Taylor Street would be the western edge of the residential portion of the neighborhood. So, Cleo's property is right at that Taylor Street intersection. We look at some of the other boundaries and I've looked out my office window on the twelfth floor of the County- City Building. About 60% of the land that I see is hard surface. It is currently parking lot. Gates Chevrolet family has been a wonderful steward of that business over many years, but as they begin to leave that site, the more logical future for those parking lots would be a series of used car lots. We're very concerned about that. Particularly car lots under multiple ownership and management as opposed to one single family. So, we really feel that now is the time to gain site control. Again, the majority of the areas that we are talking about are hard surface. The synagogue, I see some preservation folks here, it could end up staying at that site. We're not sure. If it were to be relocated, which is what our hope would be if it doesn't stay at that site, that it would be relocated within atwo-to-three block square area, somewhere along the Western Avenue corridor or the Chapin Street corridor. Also, Bill mentioned about the apartment complex. We are working with WNIT right now on a wonderful move into downtown South Bend, making a $6. SM improvement to the current WSBT building. That project would also interface with Herrman and Goetz on the 35 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... same block. We're really looking at some parcels that are critical to preplanning. The boundaries represent about three square blocks. If you look at some of the properties that Gates is not using right now, they take on the appearance of used car lots that you might see along Western Avenue or Lincolnway, with eight-foot chain link fences, barbed wire across the top, abandoned cars and car parts strewn within those parking lots. That is certainly not going to encourage any development. We are preparing for that plan so that when we finish and have recommendations that we will see significant private sector interest. MR. PECZKOWSKI: Is WNIT going to take the WSBT property off the tax rolls? Are they going to be non-profit as far as their status in that building? MR. GIBNEY: They are anon-profit agency. That's correct. MR. KING: Back to this particular proposal. All of these properties are within the area that was defined as the planning area that the consulting firm, HOK, is to address. So, the purpose is to make sure that we will have site control of any properties that we need. Ms. Jones opened the public hearing for PusLic HEARING oN RESOLUTION N0.2385 anyone who wished to be heard regarding Resolution No. 2385. ROBERT MEDHURST: I'm a realtor for 36 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... thirty eight years and an appraiser for the last twenty. And all of these wonderful acquisitions are becoming non-taxable. Fifty-five percent of the city is non-taxable? That's crazy. And, worried about parking lots, those evil parking lots and used car lots. Those evil used car lots pay taxes and support the city. We own five pieces of that proposed squaring off. I have no idea what it's going to do for us. It'll probably raise our taxes. But, Gates loves this because you people are going to line up and buy their property, which they can't give away. Because the city owns so damn much of downtown, the public doesn't have a right. And city ownership of private real estate isn't. And I own some of those evil parking lots. He gets to look out of his twelfth story penthouse at my parking lot. They only pay $3,000-$4,000 a year in taxes. They wouldn't pay a damn thing if the city owned them. We've been there for twenty years and all we get is taxes, taxes, taxes, taxes. And I don't see where this "squaring offl' is going to do one thing for our property. We're going to subsidize LePeep? They knew what the rate was when they took the lease. I' m against this whole squaring off bit. MR. GIBNEY: Are you against a comprehensive plan, a strategic plan? I know your property has been on the market for sale for decades. MR. MEDHURST: It's not now. It's worth three quarters of a million dollars. You want 37 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... to buy them? MR. GIBNEY: Well, it's been on the market for ten years. MR. MEDHURST: You want to have the city buy them? MR. GIBNEY: Hey, I moved your house. I've got a long history with you on that property. MR. MEDHURST: I know, and it was a crappy job done on it, too. You had Builders Witt do the furnace. I wouldn't let them build a fire at Boy Scout Camp. MR. GIBNEY: Thank you, sir. MR. MEDHURST: The point is, if the city wants to buy them, let them write me a check for $750,000 and you can do what the hell you want with them. This whole deal is some way to rip off the public. To raise the damn taxes. In the twenty years we've been there, the taxes have quadrupled. Quadrupled. The only reason they only quadrupled is because I'm a real estate appraiser. And I went to the tax appeal board recently and tore them anew. When I got done with them, they came from 100% increase to 12% because I was right. I nailed them to the wall, and if you don't believe it, just get them over here and put them on the fire. Tax rates are abysmal in this county. And you people sit here, all these politicians 38 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... in their suits and their appointees and their... you stand up there, and how many people there have met a payroll? How many are currently meeting a payroll? A couple, three. I notice the gentleman on the end is the only one who speaks up here. The rest of you people are mute. I was vice president of the Indiana Association of Realtors for four years. Fourteen thousand people. I chaired an awful lot of meetings. I hear one person asking all the questions. Everybody else smiling. Thank you. MS. PAM RICHEY: We own a business at 416 W. Western, catty corner from Gates on the corner of Western and William. We have been in South Bend since 1916. We have relocated twice due to redevelopment downtown. We're happy where we're at. I was concerned. I called Mr. Schalliol. He says we are not on the acquisition list, but I might add that I think that means "yet." We' d like to stay where we're at. I' m here because I'm concerned about this plan. It affects several businesses next to us, if they acquire all three of us. And, so, I'm just here to let you know that I'm going to be attending the meetings. REV. ERSKINE JONES: I'm the pastor of Sweet Home Baptist Church. I called Mr. Schalliol because we were not included in the acquisition and my problem is, we have a parking lot right next to the church. We have two services already. We've only been OK'd for like 21 parking spaces. Taylor St. has no 39 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... parking on the street. That's during baseball season, there's no parking on the street. My question is, is that, with all the moves redevelopment, is there going to be parking, are we going to be able to have any more parking spaces? I know that next door to us, GCC, they only have six parking spaces there. So parking is becoming a problem down there. Since they closed parking off right there, we take chances. Sometimes we have to pay parking tickets on Sundays, as we have evening services. We have to pay parking tickets, especially during baseball season. I try to schedule church services opposite the baseball games, so we won't run into that big traffic thing there, but I was just wondering about the parking. That parking right there off of Taylor St.? Is that going to be lifted, or since the entry way is supposed to be moved... MR. GIBNEY: I want to say that in terms of parking, and we have been involved with the Granger new facility there, too. Parking will be a major consideration as part of the plan, so I thank you for your comment about your attending the meetings. You will be invited to all the meetings that take place. As you make your contributions, suggestions, for your existing businesses, please talk about parking as one of the key issues. I can't give you an answer right now. There won't be any spades and shovels in the ground for a significant period of time, but we will come up with a plan that we will give a budget for and that will be taken into consideration. 40 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... REV. JONES: My next question is regarding who is in the acquisition. If we want to expand the church, is there going to be any kind of stigmatism as to where we can go? MR. GIBNEY: I doubt it. I would be very honest and straight forward with you. The firm that we have hired, HOK, to do the planning, is the firm that actually designed the ballpark many years ago. Their specialty is not only ballparks, but how to create an environment for economic development as part of the integration between athletic venues and neighborhoods and businesses and residents. We're not trying to create a sea of parking around a ballpark, but to create an exciting environment right up to the edge of the ballpark. So, you will certainly be invited to all the meetings and we want you to express what your goals are. MR. MANIGAULT: My understanding of this project, we're going to take Gates Chevrolet, which is a tax paying entity, and we're going to convert that property to an entrance to the Coveleski Stadium, which is owned by the South Bend Parks Dept. So, in essence, is indeed that property coming off the tax rolls and moving over to the public rolls? MS. JONES: Again, until the plan is presented, we could, in theory answer that question. MR. MANIGAULT: Well, I'm just asking 41 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... the question because it's obvious to me that when you... MR. GIBNEY: I would be pleased to answer that question. First of all, it is not a foregone conclusion that there will be a new entrance to the Coveleski Park. That is one concept that is put on the table. It is far from a foregone conclusion. Secondly, anything that the city ultimately acquires would be for sale. We would speak with people. If they have an idea for a business within the Gates Chevrolet building, the former Sears Roebuck building, we would be more than pleased to talk with them. We do not know specifically what the future for that real estate is, but we know that, given its square footage and its size, that there may not be a lot of adaptive uses. But, if a good adaptive use comes along, we will certainly give that high consideration. MR. MANIGAULT: But today you're going to acquire the property. MR. GIBNEY: No, it is being put on the acquisition list so that we can make the determination, after the plan is done, whether or not we want to acquire the property. MR. PECZKOWSKI: But, we've hired HOK. What does HOK do? They only do ballpark design, right? We haven't asked other people... MR. GIBNEY: They do athletic design, 42 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... integrated into neighborhoods. And, in addition to that, when you say "only do ballparks" they are one of the largest architectural firms in the country. The part of the firm that we hired did the original design for this ballpark, so we see that as a potential major asset to these three square blocks in the southern part of downtown. So it would certainly be illogical for us not to consider including that major asset. But it is not by any means a foregone conclusion that there will be a new entrance to the ballpark. MR. MANIGAULT: Right, but what I'm saying, Jeff, is that's a tax paying property. What's going to happen, that property is going to become part of a public parks development that comes off the tax rolls.. . MR. GIBNEY: If it does, right. MR. MANIGAULT: No, you have a plan that you presented on downtown revitalization that says you are going to have a new entrance for the ballpark. Now is that true or not? MR. SCHALLIOL: If I can speak to that, Jeff. There's seventeen acres on that corner, in this immediate Gates planning area. It won't take seventeen acres to build a new entrance to the ballpark. MR. MANIGAULT: No, but I've read the plan that you have. The plan talks about park environment, so that you can integrate people 43 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... coming into the ballpark to have a quality of experience while they are at the ballpark and before and after. That connotes to me that you are going to use that site as a non- taxpaying site. It's another site in the city that's being transferred from the public tax rolls onto the non-tax rolls. MR. GIBNEY: That is a possibility. And, Juan, our hope and our planning and our direction will be to add more real estate, in terms of new construction, to this site. MR. MANIGAULT: But it's all possibility. I can only go by the plan that you've presented. MR. GIBNEY: It's all possibility, right. Like the proposal you listened to about thirty-five minutes ago, which is now ready to be a $200M-plus development in the Northeast Neighborhood. And, five years ago that was all possibility. Today it is reality. And that was the result of planning; it was a result of citizen participation, and that was a neighborhood that was generating very few dollars in taxes and now it's going to be generating significant dollars in taxes. MR. MANIGAULT: I understand that. MR. GIBNEY: And, I can quote several neighborhoods that went through the same exact planning process where the majority of that development, is subsequently now paying taxes. That is our goal. We do 44 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... understand the need for taxes, believe me. Without those taxes we don't have the resources to get our job done. MR. MANIGAULT: I understand that. The other question I have is on Cleo Washington's house. Why is that such a significant acquisition? MR. GIBNEY: Because it's Cleo's and it's the surrounding property that's there. Cleo not only owns the house, he owns land to the east that's part of a fenced, chain-linked parking lot that, again, is part of the Gates campus. So, now's the time to get it. We're trying to avoid some speculation on that site. MR. MANIGAULT: So, if this resolution is approved, the city is going to spend $2. SM, correct.? MR. GIBNEY: $2. SM for the Cleo Washington property? MR. MANIGAULT: No, for all the acquisition properties, Jeff. Don't play with me like that. Just answer my question. MR. GIBNEY: And I would say the same thing to you. MR. MANIGAULT: Well, I'm going by the resolution. In the resolution it says $2. SM for acquisition of property. MR. GIBNEY: That is the potential. That is 45 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... an option that we will bring, parcel by parcel, back to the Redevelopment Commission. These are put on the acquisition list. It doesn't mean as fact that they will be acquired, but we have the opportunity to acquire them. MR. KEVIN BAUMGARTNER: I live at 315 S. Taylor. I live on the west side of a lot of that property. I'm also a member of St. Patrick's, which is on the west side. We own a couple properties on the east side which are not trying to be purchased yet, but they are right next to Cleo Washington's and the lot with the chain link fence. A lot of the questions I had have been answered. You're always concerned with what's going to happen to the property. And I've known Jeff for a long time. We don't want... Who knows what's going to happen to the property? As it sits, it's vacant. I guess I'm thinking we have plenty of low income housing in the area. I just don't know what's going to be there, so we're concerned. We'll go to whatever meetings and if you don't want our properties, hopefully there will be a good offer. But, still, we live across the street and St. Patrick's is across the street. So, we're very, very, very concerned with what happens. We would like to buy it and develop some beautiful places, but we don't have the money, so... MAYOR LUECKE: Again, there's been a focus on a very small part of what has been proposed for the planning process for around 46 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... Coveleski. When Coveleski was built twenty years ago, there had been hope for development that would occur around the stadium. Some of that didn't happen because of private ownership around that was already good ownership. But there was expectation of some retail, some additional housing around the stadium. What we've asked HOK to look at is, not only the stadium itself, and potentially a new entrance that ties the stadium closer into downtown, but the surrounding area as well. There's a possibility for significant development in that area that could be new residential, some new office or retail space, that compliments what's going on downtown and brings additional private sector investment to the area. One of the other roles that the city plays, of course, is consolidation of property. One of the challenges we faced with the old Studebaker properties is that it went into multiple ownership over the years. It became very difficult for the city to be able to bring new investors, to bring new companies to those properties and ultimately became very expensive for the city. Again, multiple properties in this area, if they go into private hands for a less than maximum use, we haven't done our due diligence to try to say "how can we best encourage that private investment in downtown." So, I believe the proposal to put these on the acquisition list that allows us the opportunity to buy, based on a plan that will come back before the Commission, we have to have confidence in the ability of that plan to move forward, 47 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... makes sense at this time. I would encourage your favorable action. MR. BAUMGARTNER: Just to all the homeowners in the area, we're going to have to make sure we get involved. Make sure you contact us, and we're concerned with what happens there. So, you'll see us, I suppose. MR. MARTY WOLFSON: Member of the Community Forum for Economic Development. I want to raise a slightly different issue than has been addressed thus far. There's obviously a lot of concern from people who own property in the area about what will happen. I'm fully supportive of the city's efforts to develop the downtown. I think it's really of interest to everybody who lives in South Bend and, indeed, the region, that we develop the downtown into a vibrant economic area. So, I think it's also understandable that the city would want to be able to approach this in a unified way. Having said that, one thing I' m concerned about is, what is the nature of the plan that will be developed for the downtown area? We've heard a lot of things thrown out, the entrance to the Coveleski, Bill referred to residential infill, mixed use. I'm concerned about the public participation and input into the development of this plan and what it will look like. The Community Forum has taken as one of its central objectives to try to make the economic development process one that's transparent to the public and in which the 48 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... public has an opportunity for meaningful participation. So, I'd be interested in some reaction from the Commissioners concerning the nature of the public process that will be gone through for the development of this area. I've read the contract with HOK and it doesn't explicitly call for public participation in the development of that plan. So, I'm wondering how that's going to happen. Will HOK be the full plan for the whole development of the downtown area? If not, how will that proceed and how will the public have meaningful input? When I say "meaningful" what I mean is, not only will the public have the opportunity to say what they want, but to have people's concerns meaningfully addressed. I think that means when we have public hearings we want to have them open to the public, not only by invitation to certain people, but an opportunity for everybody to participate. MS. PAULINE MEDHURST: From the Queen Anne Inn, 420 West Washington. I'm here to talk about our business, in particular. But I'm also trying to talk about the history of it. We've been open twenty years. We were the first bed and breakfast to open and we were the first one to be in the whole county. So, it's kind of hard for us to have nothing but feelings for what we've been doing. I want to express some of those. I appreciate the fact that you've allowed us to come. And, I' m very sorry to stand with my back to some, but I have a cane and it doesn't go very far, and I don't go very fast either. 49 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... I'll get my points off quickly. Yes, we have had a house on the market. You're right, Jeff. Jeff helped us get the house on the market, because it had been moved to the property where it is now. At that time it had been empty for a year and a half or so and we were the people who came along and decided to do a business venture in that particular place. So, we began. We worked it for twenty years. We still have it open. We have managers who are now doing the work for us, so that we are able to accommodate all of our aches and pains. My concern is this. The list that I see, from one to twenty- one, does not have the Queen Anne Inn listed. Is that an indication that we may still continue to be a business and we need to function as such? Or what is the actual hope for us at this particular point? This was one of our very big concerns, because we didn't see it. And we thought, well, maybe they've forgotten. But we knew that probably wasn't right. So we decided we would come and find out. Second, we are an historical home. We are on an historic register. Therefore, I think it would take a hard look to see what we would need to do with this historic home. It's given lots of privileges. People come and look at it and ooh and aah. And we're very pleased that we have been able to preserve this for the community. We have done a lot of work, preserving the home for the community. So, I'm concerned about it as an historical venture. But I'm also concerned that we have tried to be a part of the downtown itself. I have my heart there, 50 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... OK? I don't want to cry, but I could. We have worked hard at this. It is a part of us that you are talking about today. But we are very uncertain about where we are. I would really like some clarification about why we don't fall on this list, but what list are we on? MR. SCHALLIOL: I would like to answer that. First, the list of one to twenty-one are properties that we are pretty sure we have an interest in acquiring now or in the future. Since you aren't on that list, it means we don't have an interest in acquiring your property at this point in time, or probably, actually, have no interest in acquiring your property. It's a property that fits into the neighborhood well. The addition of the area and the closing of this development area allows for funds, resources and activities to occur in this area that can only be used in a development area. Bringing this two-block area into a development area offers funds that would not have otherwise been available for the area. Now, public funds can be used for infrastructure improvements, etc. JAWORSKI: I reside at 415 S. William St. I'm the only house left on William St. beside Richey's Radiator on the corner. We haven't been informed of much of anything. And, being what I hear regarding Coveleski, I'm quite interested in knowing what you are planning on doing with our property. MR. SCHALLIOL: You aren't on the acquisition list, but you are being put into the 51 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... planning area, so that you can be planned for and we can have some communication. Because this area has not been in a planning area, we really haven't had a lot of planning resources for this area or haven't made plans for this area. Now that we are going through some planning processes, we actively hope to involve the neighbors, involve the community, involve other groups in the planning process. Maybe to go back a question or two, we anticipate bringing in HOK, an architecture firm, here in a couple of weeks. There will be ample notice and ample time to get notice out to the neighbors, to the affected parties, to interested parties to bring you in at various times to the planning process, to get input, to get feedback. The church on Taylor Street, we see that as a powerful resource in that area, where parking will be an issue, so we need to hear your comments on parking. You as a neighbor on William Street. Obviously you will be the last house on William Street, so we need to accommodate you. The commercial businesses on the corner---longstanding businesses---we don't see any reason they should be moved out of the neighborhood. It'll be a very open, transparent process that will take some time. We'll move through methodically and we would like your input at every step of the process. MS. RICHEY: I have one last comment. I'm all for progress, but I'm also for small businesses. We've been a part of this community for a long time and I' d like to 52 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... stay. I'd like to stay where we're located. So, I'm hoping that will come to bear. South Bend has enough businesses that have left and you've got people here who want to stay. Now we have this cloud hanging over us--- we don't know if we're staying, going, what? So, like I said, I'll be back. MR. BILL EAGAN: 3402 Scarlet Maple Ct. I have a question and an observation. First, one thing, I looked around the ceiling here and all I see is dollar signs. I had to check to make sure I wasn't standing on the (unintelli i.~ bled That's where all the money seems to go. What is going to be the economic impact after spending all this money? That's my question. Observation. Going back a ways before all of you were involved with the politics of the area there was Coveleski Stadium. The plan there was a magnificent thing; it was going to revitalize South Bend... all the rest of it. Now, some years ago I was a member of the budget committee. And then, and it's still true, as a South Bend taxpayer. We're still paying off the bond on Coveleski Stadium. And as far as I've been able to determine, there's almost no money going to the city from that operation. Can we expect that same thing here? MR. MEDHURST: They're democrats! MR. LEONE: I believe the bonds for Coveleski are now paid off. They've been paid off for several years. 53 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... MR. EAGAN: Well, it was taxpayer money. MR. RONALD DOERS: I own a house, an historical house, and I acquired it from my folks in 1956. I also own the corner lot, a parking lot at 226 William St. At the time, 1956, I tore down three old dilapidated apartment houses to rent out as a parking lot to the unemployment office. In the meantime, you have all these parking lots, and you tried to rent these parking lots, there isn't anybody that's available to rent these parking spaces. It would take about twenty- two cars. I' m for making a plan in that area because my taxes on that piece of property have more than tripled. Where am I going to get the funds. I haven't been able to rent these spaces like I used to since the unemployment office moved out. I' m sitting here, paying all these taxes, and wondering what's going to happen. So, I was looking forward to something like that, that that whole area would be developed, then the people that owned all these vacant lots could get an income and pay the taxes. MR. PAUL HAYDEN: Staff at Historic Landmarks Foundation. I just wanted to mention that we had a controlling interest in the property, that's the synagogue, on William St. We were part of that building about five or six years ago. We still have a protective covenant on the property, so we're very pleased to hear that you folks are considering an acquisition, but not considering a demolition. That's something 54 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... that we'd be opposed to on our covenant. We look forward to working with city staff as far as developing a plan for revitalization of that property. MR. EAGAN: I would respectfully suggest that you didn't answer my question. That was, what is to be the long range economic impact of all this money in South Bend? MR. DOWNES: Mr. Eagan, I think the answer will lie when we get the plan from HOK. MR. EAGAN: I would suggest that that is an important question. MR. DOWNES: I would agree. MS. MAHONEY: I think part of the way you revitalize a city and get it going economically is to have the people there encouraged and have the people there proud of it. That's part of it. That's just a very ugly part. It was old, industrial. If you were to integrate that, I think people who live on that side, the west siders, should not feel like a blighted area. They should feel proud of the area. I think that case needs to be made to the whole City of South Bend because it's going to bring up the whole city, not just the area. MR. JACK SEIFER: Michiana Lock and Key, 306 W. Monroe St. I'm on the east side of the Cove. I'm just making my presence 55 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... known, so that everybody knows that I was here. I'm part of the other side that is eventually going to be impacted along with Bell Parts and Hope Rescue Mission. I'm very concerned with my property, and I've worked with Jeff and with Bill to get an idea, and something that I've had to learn in the last five years is patience. It's hard to do because you want to know what's going on. But it's a longer process than any of us want it to be. But since my parents owned that property thirty years ago, it's always been a question. When the Cove came in, it was a question, because they attempted to acquire our property at that time. If you know of anybody that's anywhere in the neighborhood that's not here, we need to get them here. The representatives want to work with the people, so it's really important we get everybody here. Eventually, all the property that surrounds the Cove may be impacted. So we need to get them here to as many meetings as we possibly can so they don't show up at the last meeting and be surprised, or bring up new ideas. MS. JONES: Attendees is a good place to start, but I would encourage anyone who knows of other people who are not here, and need to be, to please let us know. MS. VICKIE GABBARD: I'm on the east side of the...I own Vickie's Bar, 112 W. Monroe. I talked to Jennifer on a few occasions. She has assured me that I'm not on the acquisition list. If you could take that 56 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (7) continued... little red square and move it down about where those two pieces of paper are, that's where my building is going to be. You take around Fat Daddy's and all that other stuff and my building's going to stand there just like that little square. As far as the Cove goes, it was a wonderful idea back then. Probably still is. But if you look at the west side of my building during the spring and fall, you'll see that it's all green ivy and it doesn't get more baseball than that. I have no desire to leave. I have twenty-three years in air conditioning, heating and plumbing and all that. I did all that hard stuff. I decided I was going to buy a business ten years ago. One of Jennifer's questions to me was, what are your long term plans? On that particular morning I said, "Well, I'm going to get up in about a half hour." Because I don't have set hours anymore. But my heart and soul is there. That's all I've got. I've lost my parents, I'm down to one sister, all my aunts and uncles are gone. They were proud of me for having that, and they're going to be proud of me for staying where I'm at. I'm just here to say, "You're going to see a lot of me, too." There being no one else who wished to speak regarding Resolution No. 2385, Ms. Jones closed the public hearing for whatever action the Commission wished to take. (8) Commission approval requested for Resolution No. 2385. Mr. Peczkowski stated that it seems that the 57 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (8) continued... ballpark and the whole project probably wouldn't have been brought up if it were not for the fact that our former mayor is a controlling partner in the baseball team, and as I recall he actually presented part of this original proposal separately. Once again, I'm seeing, not that it's necessarily here, but I have certain reservations about a business venture, the South Bend Silverhawks, benefiting from the scope of this project which is going to be based on public money so that a private venture, the baseball team, which is leasing from the city parks department will benefit. I get a little uncomfortable when I see connected politicals benefiting off of taxpayer money. Mr. Downes countered by asking Mr. Leone if the City of South Bend doesn't receive some financial payment from the State of Indiana just for the presence of the Silverhawks in South Bend. Mr. Leone responded that there is a special arrangement under state law by which the taxes that are paid, including payroll taxes, go into a special sports development fund, so the business generates a lot more than would otherwise be apparent based on some special conditions of state law. That fund is available for improving Coveleski and other kinds of sports related expenses in South Bend. Mr. Peczkowski asked if those numbers would increase based on the scope of this project. Mr. Leone responded that he did not 58 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (8) continued... know the details of the law related to that. Mr. Blake reiterated that this whole project is a vision. It's easy to criticize somebody else's vision. But he didn't hear anybody with another one. If there are other visions that we want for the whole City of South Bend or for this particular area, then state them. He believes we should critically consider whatever is going to affect people. But at the same time we've got to have some kind of vision or there will be no progress, no direction, nothing happens, and then we complain about that. This is a vision. The city is supposed to create the vision. The participation is good. We want it. The presentation of the vision gives us a starting place for talking about what could happen in this area. Mr. Blake noted that people mentioned that their heart and soul is in the investment they have made in this area. As a Commissioner he does not want to micromanage projects. Others do want to micromanage. People asked that the city not play games with them. The city better not be acting with other than pure motives. People's hearts and souls are in this. Every citizen in the city is involved in this. Ms. Jones stated that that is why we hire a consultant. Let's wait for the report from the consultant, then get together again and tear it apart, and put it back together the way we think it should be. But we do have to start 59 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (8) continued... somewhere. Mr. King referred back to the October 19 minutes regarding the Commission's contract with HOK. HOK is to start within the next couple of weeks. The process of creating the plan will take about six to eight weeks. Once that gets going, we'll be able to put some flesh on the bones of the vision Mr. Blake is talking about. It's awkward when you are here talking about putting people's properties on an acquisition list when you don't have the plan that you are trying to make move forward by doing that. But, in order to get all the timing to work out, we had to do it this way. Ideally, we would have said we have a plan, and now we need these properties; but the planners need to have some assurance that what they design will be doable. Mr. King thanked everyone who came out to participate. He asked that they keep in mind Mr. Blake's admonishment. We're in the process of building a vision for this area. We've hired some topnotch consultants to do it. And all the people who are interested should participate in that process as we go forward, and we'll end up with something that everyone can be proud of and happy that we had it done. Mr. Peczkowski commented that there is a fine line between vision and wishful thinking. While he has been told in the past that his hindsight is 20/20, we have to learn from history. The history of the City of 60 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS A. Public Hearing (8) continued... South Bend is that it has played with citizen money and with acquisition of properties in the past. He does not trust that that vision is not simply wishful thinking. Our track record for having retail go into that area is not good. Our track record for acquiring property is not good. If Mr. Medhurst's statement is correct that 55% of this area's land is city owned, we've been sitting on it for a long time. We are playing games with taxpayer money. Mr. Downes agreed that we have to learn from past mistakes. However, the Redevelopment Commission should be more interested in looking forward than looking backward. Mr. Downes made a motion to approve Resolution No. 2385. Mr. King seconded the motion. The vote was four to one with Mr. Peczkowski opposed. The motion carried. B. South Bend Central Development Area (1) Commission approval requested for Lease Renewal for 1255. Michigan St. in the South Bend Central Development Area. (LePeep Restaurant) Ms. Jennings noted that LePeep Restaurant has requested to exercise its option to renew its present lease effective November 1, 2007 for an additional sixty months at a lease rate of $9.37 per square foot. The first year of the five-year lease the tenant will pay one half of COMMISSION APPROVED RESOLUTION NO. 2385 AMENDING THE SOUTH BEND CENTRAL DEVELOPMENT AREA DEVELOPMENT PLAN 61 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS B. South Bend Central Development Area (1) continued... the base rent totaling $1,250 per month. Each subsequent year the base rent will total $2,500 per month. The common area expense (CAM) plus taxes and insurance will be paid in addition to the base rent at a total of $1,043 per month. In addition, tenant will pay 6% on annual sales over $600,000. Mr. Inks noted that these are terms the Redevelopment Commission has already authorized. The approval of the Lease today is simply the written full document. Mr. King made a motion to approve the Lease. Mr. Downes seconded the motion. Mr. Peczkowski asked what LePeep's annual revenues have been in the past, for comparison purposes to the $600,000. Mr. Inks stated that that information has been supplied to staff confidentially. He stated, however, that the sales have been below $600,000, but it's not unreasonable to expect that they could go over that. Mr. Peczkowski commented, "Especially if we give them a break on the rent." Mr. Peczkowski: Being that they are able to stay in that same location instead of moving to a location where they could afford to pay the rent and the CAM fees, certainly would affect.... I know as a business, having to move is fatal to a lot of businesses. Even a block away as we were forced to on two occasions in downtown. The recovery of 62 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS B. South Bend Central Development Area (1) continued... revenues is very tough. Again, my caveat to this whole thing, and Hardie said last time that this looks to be very business friendly. My point is that the other businesses that are competing with LePeep. We are choosing a particular member, just because they happen to be our tenant, in order to give them an unfair advantage. I'm sure that if LePeeps left, that breakfast business would be appreciated by their competitors. It's adog- eat-dog world. Doing this shows a particular favoritism and is public interference in the workings of business economics. If you owned a business and you learned that your neighbor was forgiven $21,000 of their debt, had their rent cut in half, had their total rent readjusted, you would be jealous of their situation. The city should not be using public funds to create unfair advantage. Mr. Downes stated that the city is being a responsible landlord in order to retain a valuable tenant which also is good for the downtown economy. We don't have any control over the rent that other restaurants pay or don't pay. Mr. King reminded the Commissioners that the terms of this lease have already been agreed to on October 19. The staff has now put them into a standard lease form so that we can move forward. Mr. Peczkowski claimed that the original lease seen by the Commission did not include $4.60 per square foot. So this is substantially 63 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS B. South Bend Central Development Area (1) continued... different than what was approved. Ms. Jones asked Mr. Inks and received confirmation that the lease before the Commission today is no different that was approved October 19. Mr. King called for the question. The vote was four to one with Mr. Peczkowski opposed. The motion carried. (2) Staff report on acquisition of property in the South Bend Central Development Area. (Former Beebe Cabinet, 513 S. Michigan St.) Ms. Laurent: I wanted to point out the nature of my conversations with Ms. Gabbard because they are a good example of some of the discussions today on communication. I find her participation in this process excellent and exemplary. I've been very forthright with her. Our beginning of this planning process involved a conversation with her saying, "what is your long term plan for your business there." She informed me that she would like to retire from this business. She's put her heart and soul into it. She's put capital investment into that building that she doesn't feel that she could recoup by selling. So, in the course of our conversations, we proceeded to leave her off of the acquisition list. What I told her at that time was that we are anticipating some major private investment on her block. She expressed COMMISSION APPROVED THE LEASE RENEWAL FOR 1255. MICHIGAN ST. IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (LEPEEP RESTAURANT 64 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS B. South Bend Central Development Area (2) continued... great appreciation for the Commission's interest in that block, noting that it has needed attention for a long time. I pledged to keep her informed, but at the end of the day, a private developer might come knocking at your door and offer you a lot of money for your building. So be it. In other words, we were going to leave her out of this process at this time, by her wish. I think there's a lot of room for that. We certainly want to work with the existing businesses. That being said, what we do have on this block is two businesses that wish to retire. Once has vacated its building, the Beebe Cabinet building at 513 S. Michigan. On October 19 the Commission authorized a purchase offer to be sent to the owners, Foster and Linda Martin. Resolution No. 2388 set the offering price at $89,000. A negotiated written counter offer and justification to support it has been received in the amount of $105,000, plus payment of the 2006 pay 2007 property taxes in the amount of $4,681.54. The seller would be responsible for the real estate commission and the pro rated taxes for 2006 pay 2007. Staff recommends acceptance of the offer. Ms. Laurent noted that staff has looked closely at the comparable sales used to establish the offering price of Resolution No. 2388. The upper floor of the building has not been used and was, therefore, not valued in the appraisals. Other comparables in the area counted such upper floors. We believe there is some gray area as to whether 65 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS B. South Bend Central Development Area (2) continued... this additional square footage should be counted and are willing to concede the additional value to the Martins. Legal counsel has prepared a form of contract and Resolution No. 2393 authorizing approval of the counter offer. Staff recommends accepting it. Staff would like to close before November 13. Mr. Peczkowski asked if the rush is so they don't have to pay property taxes. Ms. Laurent responded that the intent is to prevent them from having to take out a loan to pay property taxes and then receive the city's payment days later with which to pay the taxes. Mr. King made a motion to approve Resolution No. 2393 accepting the counter offer from Foster and Linda Martin in the amount of $109,681.54 for property at 513 S Michigan St. Mr. Downes seconded the motion. The vote was four to one with Mr. Peczkowski opposed. The motion carried. C. Airport Economic Development Area There was no business in the Airport Economic Development Area. D. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. COMMISSION APPROVED RESOLUTION NO. 2393 ACCEPTING THE COUNTER OFFER FROM FOSTER AND LINDA MARTIN IN THE AMOUNT OF $109,681.54 FOR PROPERTY AT 513 S. MICHIGAN ST 66 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 6. NEW BUSINESS (CONT.) E. South Side Development Area There was no business in the South Side Development Area. F. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. G. Other (1) Reconsideration of Minutes of October 19, 2007 Meeting. Mr. Peczkowski made a motion to reconsider and enter into the Minutes of October 19, 2007 the correction of the error regarding the petition as it was accepted from Ms. Martha Lewis related to saving the Fat Daddy's building without the caveats that were stated at the October 19 meeting. There was no second for the motion. 7. PROGRESS REPORTS Mr. Inks reported that the pre-bid meeting was held for the South Bend Lathe demolition. We are expecting bids to be received near the end of November. Demolition of the South Bend Lathe building will really open up the view of the Studebaker Industrial Park and prepare us to complete that project, by putting the infrastructure in and putting that property up for sale for private development. 8. NEXT COMMISSION MEETING The November 2, 2007 meeting will reconvene Thursday, November 8, 2007 at 10:00 a.m. on the 13tH floor of the County-City Building for consideration of MOTION DIED FOR LACK OF A SECOND PROGRESS REPORTS NEXT COMMISSION MEETINGS 67 South Bend Redevelopment Commission Rescheduled Regular Meeting -November 2, 2007 8. NEXT COMMISSION MEETING the Douglas Road Economic Development Area agenda items. The next Regular Meeting of the Redevelopment Commission is scheduled for Friday, November 16, 2007 at 10:00 a.m. 9. ADJOURNMENT The meeting was recessed at 12:15 p.m. ADJOURNMENT Donald E. Inks, Director Marcia I. Jones, President 68