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Home My WebLink About2A Minutes 09.26.19 RDC South Be n d Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, IN SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING September 26, 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 Gavin Ferlic, Commissioner Members Absent: Don Inks, Vice-President Leslie Wesley, Commissioner Legal Counsel: Sandra Kennedy, Esq. Redevelopment Staff: David Relos, RDC Staff Mary Brazinsky, Board Secretary Others Present: Daniel Buckenmeyer Jitin Kain Jacob Alexander Amanda Pietsch Zach Hurst Kyle Silveus Charlotte Brach Conrad Damian Rob Michalak Todd Samuelson Andy Kostielney Phil Faccenda Mike Noland DCI DCI DCI DCI Engineering Engineering Engineering 718 E Broadway R Ray Real Estate Baker Tilly St. Joe County Barnes & Thornburg LLP NICTD South Bend Redevelopment Commission Regular Meeting – September 26, 2019 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, September 12, 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, September 12, 2019. 3. Approval of Claims A. Claims Submitted September 26, 2019 Upon a motion by Secretary Phillips, seconded by Commissioner Monk, the motion carried unanimously, the Commission approved the claims submitted on Thursday, September 26, 2019. 4. Old Business South Bend Redevelopment Commission Regular Meeting – September 26, 2019 5. New Business A. River West Development Area 1. Third Amendment to Agreement to Buy and Sell Real Estate (618 W Marion Mr. Relos presented Third Amendment to Agreement to Buy and Sell Real Estate (618 W Marion). This Amendment extends the closing date for this property until October 31, 2019. It is expected to close by October 28, 2019. 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 Third Amendment to Agreement to Buy and Sell Real Estate (618 W Marion) submitted on Thursday, September 26, 2019. 2. Resolution No. 3503 (Declaring Certain Properties Blighted) Mr. Relos presented Resolution No. 3503 (Declaring Certain Properties Blighted) These are vacant lots in the City Cemetery area that are vacant and blighted. This is the first step for these lots to be acquired. 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 Commissioner Ferlic, seconded by Secretary Phillips, the motion carried unanimously, the Commission approved Resolution No. 3503 (Declaring Certain Properties Blighted) submitted on Thursday, September 26, 2019. 3. Third Amendment to Development Agreement (Ziker’s) Mr. Buckenmeyer presented Third Amendment to Development Agreement (Ziker’s). Bids for this project came in higher than anticipated for the local public improvements. The developer has agreed to pay the overage for the improvements in the amount of $35,100. 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 Commissioner Ferlic, seconded by Secretary Phillips, the motion carried unanimously, the Commission approved Third Amendment (Ziker’s) submitted on Thursday, September 26, 2019. 4. First Amendment to Development Agreement (Bald Mountain, LLC) Mr. Buckenmeyer presented First Amendment to Development Agreement (Bald Mountain, LLC). Bald Mountain, LLC is better known as 201 S. Main or Main and Jefferson. As the contractors for our part of the project worked on the pilings in the construction area, there was shifting due to remnants of the old Jefferson South Bend Redevelopment Commission Regular Meeting – September 26, 2019 Hotel. Bald Mountain has agreed to split the amount with the city. We are requesting an additional amount of $10,000 to the overall budget, bringing the amount to $360,000. 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 Ferlic, the motion carried unanimously, the Commission approved First Amendment to Development Agreement (Bald Mountain, LLC) submitted on Thursday, September 26, 2019. 5. Real Estate Purchase Agreement (R. Ray Real Estate, LLC) Mr. Buckenmeyer presented Real Estate Purchase Agreement (R. Ray Real Estate, LLC). Masterbilt, also known as R. Ray Real Estate, LLC is one of the legacy companies in South Bend with three generations of ownership looking to expand their business. Their new location is planned for Indiana and Kemble, commonly known as Ignition Park South. The facility will be a new 40,000 square foot facility which will combine a couple recently acquired businesses. This Agreement will sell the land at $10,000 per acre for a total of $30,000. We are offering a first right of refusal for a period of 5 years on the western half of the abutting lot to the east. R. Ray Real Estate, LLC will obtain an environmental analysis of the land. Rob Michalak, states they are experiencing growth and have acquired a business in Mishawaka in December 2018. He would like to expand the current location in South Bend and looks forward to working with the city. Mr. Buckenmeyer stated that Rob has partnered with the Pathways program and Jacob Alexander, Business Development Specialist for the city to take advantage of lean training. We appreciate all his partnerships with the city. 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 Commissioner Ferlic, seconded by Secretary Phillips, the motion carried unanimously, the Commission approved Real Estate Purchase Agreement (R. Ray Real Estate, LLC) submitted on Thursday, September 26, 2019. 6. Budget Request (Olive GAC Water Treatment Plant) Mr. Silveus presented Budget Request (Olive GAC Plant Construction). The Board of Public Works recently opened bids for the Olive Water Treatment Plant (WTP). Bowen Engineering submitted the only bid which was approximately $500,000 over the estimate. This work is critical in providing clean drinking water to the central pressure zone and to perform the work when there are lower demands for water in late fall/winter. Commission approval is requested. South Bend Redevelopment Commission Regular Meeting – September 26, 2019 President Jones opened the floor for public comment. No public comment was made. The floor was closed to public comment. Upon a motion by Commissioner Monk, seconded by Secretary Phillips, the motion carried unanimously, the Commission approved Budget Request (Olive GAC Plant Construction) submitted on Thursday, September 26, 2019. B. River East Development Area 1. Budget Request (Colfax Bridge Lift Station) Mr. Hurst presented a Budget Request (Colfax Bridge Lift Station). This budget request is for $60,000 to augment and finalize a report analyzing the East Race sewer system. In the past year engineering has worked with developers in the area to hone in on accurate data. In the future there will be new plans and estimations for the lift station. Commission approval 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 Commissioner Monk, seconded by Secretary Phillips, the motion carried unanimously, the Commission approved Budget Request (Lift Station) submitted on Thursday, September 26, 2019. C. Other 1. MOU (South Shore Line) Mr. Kain presented the MOU (South Shore Line). In 2017 the Redevelopment Commission signed an agreement with the County for both parties to work on double tracking reducing the travel time from South Bend to Chicago. The MOU stated the County would cover the cost of double tracking at $18M and the City would cover the cost of relocating the station at $25M. At City Council in 2017 a resolution was passed to support this agreement. The County has approached the City to partner with them regarding the cost of double tracking. The MOU in front of you supersedes the old MOU stating the County and City will split the cost of the double tracking at $9.125M each via a bond. The County would then contribute the same amount towards a new station. There is a study looking at downtown and the airport cargo plan. If the City agrees to the $9.125M bond, NICTD would agree to a 20-year location in South Bend. The MOU has been approved on the County side. Mike Noland, NICTD stated that we are in a critical juncture to move the project forward. In June 2019 the State budget committee approved the State funding plan. The project was estimated at $300M with the 4 counties splitting half with the State with the other half the federal government. Since that time the project has gotten more expensive at $400M. The federal government was asking for us to come up with more than 50% at a threshold of 38%. That came in late March which went to the Governor’s office and local leaders. Within four weeks the State came up with an additional $205M which will cover the increased project cost. The Governor is all in on this project. This was passed through the State budget South Bend Redevelopment Commission Regular Meeting – September 26, 2019 in June and expect final decision in the next month. The final ask is at all the County/City levels. The goal is 90 miles in 90 minutes. This will increase ridership and economic growth for the areas. The goal is for construction to start in 2021 and completion in 2023. President Jones opened the floor for public comment. No public comment was made. The floor was closed to public comment. Upon a motion by Commissioner Ferlic, seconded by Secretary Phillips, the motion carried unanimously, the Commission approved MOU (South Shore Line) submitted on Thursday, September 26, 2019. 2. Resolution No. 3502 (South Shore Line) Mr. Kain presented Resolution No. 3502 (South Shore Line). The bond process is kicking off today. Phil Faccenda, Barnes & Thornburg stated that this is the last piece in the overall financing plan for the double tracking plan. This Resolution is to authorize a public hearing taking place at the Redevelopment Commission on October 10th and to place a notice in the paper for this hearing. This is giving preliminary approval of a draft lease included in your materials. Lease financing in Indiana allows us to issue bonds that would be backed by special property taxes of the district. The district has a debt limit. With lease financing you do not build in that limit, it is a lease rental. We would include the Redevelopment Authority with property along Cleveland Road for the leased premises. The Redevelopment Authority will also need to meet on October 10, 2019. The approximate amount will be for $10.4M. It is anticipated that the financing will be on October 28th for approval. With the approval a formal lease in which we will have to wait 30 days and close in mid- December 2019. 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 Commissioner Ferlic, seconded by Secretary Phillips, the motion carried unanimously, the Commission approved Resolution No. 3502 (South Shore Line) submitted on Thursday, September 26, 2019. 3. Resolution No. 3491 (Setting Public Hearing for 2020 TIF Appropriations) Ms. Pietsch presented Resolution No. 3491 (Setting Public Hearing for 2020 TIF Appropriations). This resolution will set the public hearing date for October 24, 2019 for the 2020 TIF appropriations. 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 Commissioner Ferlic, seconded by Secretary Phillips, the motion carried unanimously, the Commission approved Resolution No. 3491 (Setting Public Hearing for 2020 TIF Appropriations) submitted on Thursday, September 26, 2019. South Bend Redevelopment Commission Regular Meeting – September 26, 2019 6. Progress Reports A. Tax Abatement 1. Masterbilt 2. Jupiter Aluminum: 111,000 sq. ft. building; new buyer out of Chicago for warehousing initially for the RV business. Possible bringing business from China to South Bend. 3. Personal Property leasing Cleveland/Brick Road building; $4M injection molding equipment; 120 new jobs. 4. Vennli – office building at 23/Corby. B. Common Council C. Other 7. Next Commission Meeting: Thursday, October 10, 2019, 4:00 p.m. 8. Adjournment Thursday, September 26, 2019, 4:32 p.m. David Relos, Property Development Manager Marcia Jones, President