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Home My WebLink AboutRDC Packet 9.12.2019South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Agenda Regular Meeting, September 12, 2019 – 4:00 p.m. 227 W. JEFFERSON BLVD., 1300 SOUTH BEND, INDIANA 1.Roll Call 2.Approval of Minutes A.Minutes of the Regular Meeting of Thursday, August 22, 2019 3.Approval of Claims A.Claims Submitted September 12, 2019 4.Old Business 5.New Business *Privilege of the floor after each item A.River West Development Area - D2 1.Waiver and Release of Conditions (333 Western Associates LLC) - D2 2.Third Amendment to Agreement to Buy and Sell Real Estate (618 W Marion) - D2 3.Budget Request (Weather Amnesty) - D2 B.Other 1.Budget Request (Pokagon Fund) - All 6.Progress Reports A.Tax Abatement B.Common Council C.Other 7.Next Commission Meeting: Thursday, September 26, 2019, 4:00 p.m. ITEM: 1 South Be n d Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, IN SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 22, 2019 4:00 p.m. 227 West Jefferson Boulevard Presiding: Marcia Jones, President South Bend, Indiana The meeting was called to order at 4:00 p.m. 1.ROLL CALL Members Present:Marcia Jones, President Quentin Phillips, Secretary Todd Monk, Commissioner Leslie Wesley, Commissioner Members Absent: Don Inks, Vice-President Gavin Ferlic, Commissioner Legal Counsel: Sandra Kennedy, Esq. Redevelopment Staff: David Relos, RDC Staff Mary Brazinsky, Board Secretary Others Present: Daniel Buckenmeyer Jitin Kain Tim Corcoran Amanda Pietsch Tony Sergio Kyle Silveus Zach Hurst Bhola Singh John Tiffany Conrad Damian Ed Semmler DCI DCI DCI DCI DCI Engineering Engineering VST Entertainment Tiffany Group 718 E Broadway SB Tribune ITEM: 2A South Bend Redevelopment Commission Regular Meeting – August 22, 2019 2.Approval of Minutes A.Approval of Minutes of the Regular Meeting of Thursday, July 25, 2019 Upon a motion by Secretary Phillips, seconded by Commissioner Monk, the motion carried unanimously, the Commission approved the minutes of the regular meeting of Thursday, July 25, 2019. 3.Approval of Claims A.Claims Submitted August 22, 2019 Upon a motion by Secretary Phillips, seconded by Commissioner Monk, the motion carried unanimously, the Commission approved the claims submitted on Thursday, August 22, 2019. 4.Old Business South Bend Redevelopment Commission Regular Meeting – August 22, 2019 5.New Business A.River West Development Area 1.Parking Lot License Agreement (Bhola Singh) Mr. Buckenmeyer presented the Parking Lot License Agreement (Bhola Singh). Staff is working with a developer regarding the old VA building. Out of respect, we are not ready to unveil the project yet, but we want to enable the developer to move on with their next steps. This Agreement will grant the company a license to enter and use eighty (80) parking spaces in the Commission owned parking lot abutting the VA building to the west. This will give them the tools to continue into the next phase of their project. Commission approval is requested. President Jones opened the floor for public comment. No public comment was made. The floor was closed to public comment. Upon a motion by Secretary Phillips, seconded by Commissioner Monk, the motion carried unanimously, the Commission approved the Parking Lot License Agreement (Bhola Singh) submitted on Thursday, August 22, 2019. B.River East Development Area 1.Addendum to Development Agreement (Commerce Center Development LLC) Mr. Kain presented the Addendum to Development Agreement (Commerce Center Development LLC). This is an Addendum that clarifies the definition regarding a grocery store and pharmacy. The original Agreement with the Commerce Center had broad language regarding a grocery store and pharmacy. This clarifies what they need to contain. Staff has been working with the developer for quite sometime to agree on the definition. This does not change other terms to the Agreement. Commission approval is requested. President Jones opened the floor for public comment. No public comment was made. The floor was closed to public comment. Commissioner Monk asked about the language of the pharmacy portion as it does not mention having a pharmacist on staff. Sandra Kennedy, City Attorney remarked in order to carry a license to operate a pharmacy, they are required to have a pharmacist on staff. Upon a motion by Secretary Phillips, seconded by Commissioner Monk, the motion carried unanimously, the Commission approved Addendum to Development Agreement (Commerce Center Development LLC) submitted on Thursday, August 22, 2019. South Bend Redevelopment Commission Regular Meeting – August 22, 2019 2.Second Amendment to Development Agreement (Greater Lowell Holdings LLC) Mr. Buckenmeyer presented Second Amendment to Development Agreement (Greater Lowell Holdings LLC). The low bid through the Board of Public Works exceeded the funding amount. We had approved $50,000 prior to the bid. We are asking for an additional $10,000 out of River East TIF. The developer is paying the balance of the overage of $7,725.38. The total out of River East TIF on the project is $460,000. Commission approval is requested. President Jones opened the floor for public comment. No public comment was made. The floor was closed to public comment. Upon a motion by Secretary Phillips, seconded by Commissioner Monk, the motion carried unanimously, the Commission approved Second Amendment to Development Agreement (Greater Lowell Holdings LLC) submitted on Thursday, August 22, 2019. C.Other 1.Professional Services Budget Increase (Baker Tilly) Mr. Relos presented Professional Services Budget Increase (Baker Tilly). Baker Tilly was approved to perform analysis in January of this year for the TIF boundary adjustment. The analysis was well underway when the Auditor’s office updated assessed values for 2019 pay 2020, thereby causing Baker Tilly to have to recalculate their analysis. Staff is requesting approval of a $9,000 budget increase to the original $30,000 professional services agreement. Commission approval is requested. President Jones opened the floor for public comment. No public comment was made. The floor was closed to public comment. Upon a motion by Secretary Phillips, seconded by Commissioner Monk, the motion carried unanimously, the Commission approved Professional Services Budget Increase (Baker Tilly) submitted on Thursday, August 22, 2019. 6.Progress Reports A.Tax Abatement B.Common Council C.Other 7.Next Commission Meeting: Thursday, September 12, 2019, 4:00 p.m. 8.Adjournment Thursday, August 22, 2019, 4:09 p.m. David Relos, Property Development Manager Marcia Jones, President ITEM: 3A Page 1 of 3 CROSS REFERENCE: Document No. 1801511 WAIVER AND RELEASE OF CONDITIONS AND RIGHT OF REVERSION UNDER REAL ESTATE PURCHASE AGREEMENT This Waiver and Release of Conditions and Right of Reversion Under Real Estate Purchase Agreement (this “Waiver and Release”) is made the 12th day of September 2019 (the “Effective Date”), by the South Bend Redevelopment Commission, the governing body of the City of South Bend Department of Redevelopment (the “Commission”). RECITALS A.The Commission conveyed certain real property, commonly known as 333 Western Avenue, South Bend, Indiana, and more particularly described in the attached Exhibit A (the “Property”) to 333 Western Associates, LLC (the “Grantee”) by a Special Warranty Deed, dated January 11, 2018, and recorded on January 18, 2018 as Document No. 1801511 in the Office of the Recorder of St. Joseph County, Indiana (the “Deed”), pursuant to that certain Real Estate Purchase Agreement, dated May 11, 2017, by and between the Commission and the Grantee (as assignee of Cressy & Everett Commercial Corporation, doing business as Newmark Grubb Cressy & Everett), as amended by the First Amendment to Real Estate Purchase Agreement, dated July 27, 2017, the Second Amendment to Real Estate Purchase Agreement, dated November 20, 2017, and the Third Amendment to Real Estate Purchase Agreement, dated January 24, 2019 (together, the “Purchase Agreement”). B.The Deed and the Purchase Agreement contain certain conditions subsequent that the Grantee was expected to perform relative to the Property (the “Conditions”). C.Grantee has entered into an agreement to convey the Property to a new developer and, in order to facilitate Grantee’s anticipated conveyance of the Property, the Commission has agreed to release and waive the Conditions, as well as its right to reversion pertaining thereto. NOW, THEREFORE, in consideration of the above Recitals, the Commission states as follows: 1.Recitals. The above Recitals are incorporated into and made a part of this Waiver and Release. ITEM: 5A1 Page 2 of 3 2.Waiver and Release. The Commission hereby waives and forever releases the Grantee’s performance of the Conditions set forth in the Deed and Purchase Agreement related to the Property. Specifically, the conditions subsequent and related terms, including the right of reversion, set forth in Section 11 to the Purchase Agreement and the fifth paragraph of the Deed (relating to Section 11 of the Purchase Agreement) will have no further force or effect. 3.Recordation. Promptly following the execution of this instrument by the Commission, it shall be recorded in the Office of the Recorder of St. Joseph County, Indiana. IN WITNESS WHEREOF, the Commission hereby executes this Waiver and Release as of the Effective Date. SOUTH BEND REDEVELOPMENT COMMISSION By: Marcia I. Jones, President Attest: Quentin Phillips, Secretary STATE OF INDIANA ) ) SS: COUNTY OF ST. JOSEPH ) Before me, the undersigned Notary Public in and for said County and State, this 12th day of September 2019, personally appeared Marcia I. Jones and Quentin Phillips, known to me as the President and Secretary, respectively, of the South Bend Redevelopment Commission, the governing body of the City of South Bend, Indiana, Department of Redevelopment, and acknowledged the execution of the foregoing Waiver and Release, being authorized so to do. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal. Mary C. Brazinsky, Notary Public Residing in St. Joseph County, Indiana My Commission Expires December 12, 2024 I affirm, under the penalties for perjury, that I have taken reasonable care to redact each Social Security number in this document, unless required by law. Sandra L Kennedy. This instrument was prepared by Sandra L. Kennedy, Assistant City Attorney, County-City Building, 227 W Jefferson Blvd., Ste. 1200S, South Bend, IN 46601. Page 3 of 3 EXHIBIT A Description of Property Lots Numbered Seventeen (17), Eighteen (18), Nineteen (19), Twenty (20), Twenty-one (21), Twenty-two (22) and Twenty-three (23) as shown on the recorded Plat of William S. Vail’s Addition to the Town, now City of South Bend; including that part of Railroad Avenue heretofore vacated lying South of and adjoining said Lots 22 and 23. Also, the entire vacated alley running East and West lying between Lots 20 and 21 as shown on the recorded Plat of William S. Vail’s Addition to the City of South Bend; also, the East One-half (1/2) of Vacated Franklin Street lying West of and adjacent to said Lots 17 through 23. Parcel Key Nos. 018-3012-0447 and 018-3012-0452 ITEM: 5A2 Redevelopment Commission Agenda Item DATE: 09/06/2019 FROM: Amanda Pietsch, Director of Finance SUBJECT: Weather Amnesty Project Budget Which TIF? (circle one) River West; River East; South Side; Douglas Road; West Washington PURPOSE OF REQUEST: Funding request in the amount of $305,000 for the 2019-2020 Weather Amnesty Program. Specifics: Budget request is for increased Weather Amnesty program expenses for 2019-2020 due to repairs necessary on the 510 S. Main Street building that will house the program, general operating expenses, and additional operating time frame of the program which is contingent upon the building repair timeline. We anticipate the project to run from November 1, 2019 through March 31, 2020, however if repairs can be completed before then, we will aim to begin the program on October 15, 2019. Additionally, the program has always operated at two locations with funding provided for only one location. For 2019-2020 the City has agreed to fund both locations, 501 S. Main Street and the Center for the Homeless. The budget is requested to be funded using Pokagon funds in Fund 433. Quotations will be opened and awarded through BPW on 09/10, contingent upon RDC funding approval. INTERNAL USE ONLY: Project Code: 16JV03 Weather Amnesty; Total Amount new/change (inc/dec) in budget: $305,000; Break down: 433-1050-460.39-30 Costs: Engineering Amt: ______________________; Other Prof Serv Amt_________________; Acquisition of Land/Bldg (circle one) Amt: ___________; Street Const Amt ________________; Building Imp Amt_________; Sewers Amt_________; Other (specify) Amt: ________________ ___________________________________________. Going to BPW for Contracting? Y/N Is this item ready to encumber now? Yes Existing PO#__________ Inc/Dec $_____________ _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION ITEM: 5A3 Redevelopment Commission Agenda Item DATE: September 12, 2019 FROM: Alkeyna Aldridge SUBJECT: Budget Request (Pokagon Fund) Which TIF? (circle one) River West; River East; South Side; Douglas Road; West Washington This is a budget request for two community development initiatives aimed at addressing poverty and unemployment in the city. The request is from the Pokagon fund managed by the Redevelopment Commission. I.Request: $20,000 Vendor: Incremental Development Alliance, Inc. Professional Services: Targeted Small Developer Technical Assistance The Alliance aims to train under capacity neighborhood-based organizations and individuals how to develop small buildings, often owner occupied (or owner- adjacent). II.Request: $30,000 Vendor: St. Mary’s College Women’s Entrepreneurship Initiative (WEI) Program: SPARK Neighborhood Accelerator Pilot WEI’s SPARK Women’s Business Accelerator provides a successful model of technical assistance and mentorship for women entrepreneurs. By partnering with the City of South Bend to deliver SPARK in a small, targeted area, WEI can support economic empowerment of women, especially women of color, and create a replicable model for economic inclusion, small business development, and neighborhood revitalization. We intend our pilot to run for a minimum of five years to develop a steady pipeline of small businesses and a robust entrepreneurial ecosystem. Total Request: $50,000 _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION ITEM: 5B1