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HomeMy WebLinkAbout03-14-08 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING March 14, 2008 10:00 a.m. Presiding: Marcia I. Jones, President 1. ROLL CALL Members Present: Members Absent: Legal Counsel: 227 West Jefferson Boulevard South Bend, Indiana Ms. Marcia Jones, President Mr. Greg Downes, Secretary Mr. Hardie Blake, Jr. Mr. Ken Peczkowski Mr. Karl King, Vice President Mr. Lawrence Meteiver, Esq. Redevelopment Staf£ Mr. Don Inks, Director Mrs . Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. Nicholas Witwer, Economic Development Specialist Ms. Debrah Jennings, Project Manager Others Present: Mayor Stephen J. Luecke Mr. Tom Price, Mayor's Office Mr. Patrick McMahon, Project Future Mr. Dave Brenner, Notre Dame Ms. Jamie Loo, South Bend Tribune Ms. Rita Kopala Ms. GlendaRae Hernandez Ms. Allison Sell, Baker & Daniels Mr. John Rappelli 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, February 29, 2008. Upon a motion by Mr. Downes, seconded by Mr. COMMISSION arrxovED TxE MINUTES of TxE King and unanimously carried, the Commission REGUEax MEETING of FRIDAY, FEBRUARY 29, approved the Minutes of the Regular Meeting of 2008 Friday, February 29, 2008. South Bend Redevelopment Commission Regular Meeting -March 14, 2008 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted March 14, 2008 for approval. Sopko, Nussbaum, Inabnit &Kaczmarek The Troyer Group 420 FUND TIF DISTRICT-SBCDA GENERAL Ampco System Parking Downtown South Bend Inc. Sopko, Nussbaum, Inabnit &Kaczmarek Indiana Michigan Power CB Richard Rose Pest Solutions Grauvogel & Associates 422 FUND WEST WASHINGTON Sopko, Nussbaum, Inabnit &Kaczmarek 433 FUND REDEVELOPMENT ADMIN GENERAL Baker & Daniels LLP Total Mr. Peczkowski asked if the DTSB claim was one fourth of the standard contract. Mr. Inks responded that it is payment for both the January and February billings. Mr. Peczkowski asked to receive a breakdown of what is spent for administrative costs and what is paid to people who actually do the work. Mr. Inks indicated he would provide Mr. Peczkowski with the only detail that we have, a copy of the claims presented. DTSB is not required to provide more detail to us than that. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted March 14, 2008, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 630.00 4,466.15 5,688.72 31,757.82 2,373.75 279.86 37.24 90.00 2,590.00 112.50 4,219.66 52,245.70 COMMISSION APPROVED THE CLAIMS SUBMITTED MARCH 14, 2008, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS 2 South Bend Redevelopment Commission Regular Meeting -March 14, 2008 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS Mr. Inks asked that Item 6.H.(3) be moved to the top of New Business. There was no objection and the item was so moved. H. Other (3) Commission approval requested to submit Certified Technology Park application to Indiana Economic Development Corporation. (IEDC) Mayor Luecke said the City of South Bend is excited at the opportunity to submit an application in partnership with the University of Notre Dame to the State of Indiana. The state created a Certified Technology Park program a number of years ago, and South Bend has been working diligently with Project Future and the University of Notre Dame to bring forward a proposal that will benefit all parties. It builds on Notre Dame's commitment to research and the intellectual property on that campus, and the Indiana University School of Medicine immediately south of Notre Dame. The initial area of the park was to be about fourteen acres. But the point of the program offered by the state is to bring ideas to commercialization. To that end the city's proposal includes an additional area in the Studebaker Industrial Park dedicated to development proceeding from the research campus. The city has been clearing land in the Studebaker Corridor for a number of years. That land will be ready for THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting -March 14, 2008 6. NEW BUSINESS (CONT.) H. Other (3) continued... development in the next couple of years. As companies outgrow the space at Innovation Park we would encourage them to move to Studebaker Industrial Park, bringing new jobs and investment to the area. Mr. McMahon noted that he has been communicating with the governor and IEDC for months about the city's application. They are expecting the application and are in agreement with the proposal we plan to submit. The application itself talks about the fact that the City of South Bend and the University of Notre Dame are interested in pursuing the technology park program established by the State of Indiana. The application requires mention of a specific company that would benefit. The company South Bend is using is EmNet which prototypes new technology. A brief outline of its activity is included in the application. In addition, there are some maps and surveys, including two aerial views of the two non- contiguous locations of the park. One is of the area immediately south of Edison Road; the other one is the Studebaker Industrial Park where the city is expecting to complete acquisition and clearance over the next two years. It is the city's anticipation that businesses that are incubated in the technology park near Edison Road will open operations elsewhere in the city, particularly in the Studebaker Industrial Park. This is different than other applications the state has seen in that there are two non-contiguous 4 South Bend Redevelopment Commission Regular Meeting -March 14, 2008 6. NEW BUSINESS (CONT.) H. Other (3) continued... areas. We've discussed this with the state which has said they are receptive to that. They understand the reason for it. Other technology parks in Indiana are two and three hundred acre parks which allow business to incubate and then set up a regular business in the same park. South Bend does not have that amount of land in the inner city where the partner universities are. Mr. McMahon noted that the Campus Site includes the twelve acres just south of Edison Road where the soccer fields have been, wraps with a narrow strip along the face of Eddy Street Commons, incorporating the hotel facilities and the office facilities that are located at the intersection of Edison, Twyckenham and SR 23, and incorporates the research and study area that has been developed with the Indiana University School of Medicine. Our reasons for wrapping the boundary of the Campus Site around to include the area at the intersection are two: provides us with an integration of research that's obviously happening on both pieces (ILT Med School and Notre Dame's property). It is unique in Indiana for two universities to be involved in partnering with the technology park. Secondly, there will be companies that provide support office activity, like at any business incubator, such as law firms, accounting firms, etc. We are not interested in seeing those companies locate on the twelve acres. But they can certainly be housed in the office portions of the park. That would be a very appropriate South Bend Redevelopment Commission Regular Meeting -March 14, 2008 6. NEW BUSINESS (CONT.) H. Other (3) continued... location for them; hence the city is bringing those buildings into the proposal to the state. We've also included the hotel portion of Eddy Street Commons in the application because virtually all of the first class technology parks in the country include quality rooms for conferences, very integral to the technology park activities. The governor and IEDC are aware of this part of our application and understand our reasoning. There will likely be further discussion with the state on this issue. The submittal of the application will give the state opportunity to review and comment on the various parts of it. Mr. Brenner, Executive Director of the Innovation Park at Notre Dame, addressed the issue of why now is the time to submit the application for the Certified Technology Park. As a strong research university that aspires to do even more research, the new word in the industry is "translation." What are you doing to prove that the public dollars going to your research are benefiting someone? The University of Notre Dame feels that now is the time to take steps to prove the value of its research. Ms. Jones asked Mr. McMahon what the state and the local involvement is in a Certified Technology Park Mr. McMahon responded that the State of Indiana decided several years ago that they wanted to promote economic development that is university based in order to create new waves 6 South Bend Redevelopment Commission Regular Meeting -March 14, 2008 6. NEW BUSINESS (CONT.) H. Other (3) continued... of job creation in the State of Indiana. The statute that the state has in place does a couple of things. It forms a network of entities and encourages collaboration. The state put in its program an opportunity to capture tax dollars to channel back to support the establishment of the park and address some of the early operating costs of the park. From those businesses that spin out, the statute allows the park to capture real and personal property taxes, as well as payroll and business taxes that would otherwise go to the state. The business plan of this park does not anticipate the capture of the property taxes because both the Northeast Neighborhood and Studebaker Corridor taxes are being used for other purposes within their TIF districts. State certification will allow the tech park to capture up to $SM in incremental sales and business taxes. Innovation Park, in part, will receive financial support through businesses now being developed at Eddy Street Commons. The tech park also is applying for two $2M state grants through the IEDC. Mr. McMahon noted that there is a window on this opportunity. The state has an end date on this legislation. As successful as we expect it to be here, and as successful as it is in some other locations, Mr. McMahon expects the state will extend the legislation when it comes up for review. South Bend will be one of only three locations in the state in the current 7 South Bend Redevelopment Commission Regular Meeting -March 14, 2008 6. NEW BUSINESS (CONT.) H. Other (3) continued... technology park program that have major research assets in play. Other communities are working other assets they may have. That's the primary benefit from the State of Indiana. Mr. Downes asked for a timeline of the approval process. Mr. McMahon responded that it is about atwo-month process. The Commission will hold a public hearing on the proposal in about a month. We expect all of the state's feedback over the course of the next month, before the Commission's public hearing. Mr. Inks noted that the next big step is a formal agreement with the IEDC to establish the Certified Technology Park. This application gets a serious discussion going, but all of the details about which property taxes or sales or income taxes might be collected, the exact boundaries, all of that would be agreed with between the state, the Redevelopment Commission and the Civil City of South Bend. We can't start the process of defining the agreement until we submit an application. Mr. Peczkowski asked why not include the Eddy Street Commons parking garage within the technology park boundaries, if we would include the hotel? Mr. McMahon responded that the garage wouldn't be generating any tax revenue that the park might be able to take advantage of. Also, it's not closely enough related to research to please the state. South Bend Redevelopment Commission Regular Meeting -March 14, 2008 6. NEW BUSINESS (CONT.) H. Other (3) continued... Mr. Peczkowski asked if the revenue the technology park would get from the hotel would take revenue away from the TIF area. Mr. McMahon responded that it would not, since the technology park is not going to receive property taxes. Mr. Peczkowski asked for confirmation of what he understood to be the case: that businesses from the research park would not be compelled to settle in the Studebaker Industrial Park, but that we would hope they would. Mr. McMahon agreed, but said the city and university would encourage outgrowth development in Studebaker. And, timing of the industrial park's completion dovetails nicely with the research park's need. It really should be a great fit. Mr. Peczkowski asked if Studebaker Industrial Park would be reserved only for outgrowth companies from the research park. Mr. McMahon responded that he would like to see the city reserve it. The benefits will be greater if they do. It will open up possibilities for housing and retail downtown from all sorts of support activities in the immediate area. The application does not include any fixed requirement that the city reserve it solely for research outgrowth companies, but he hopes they will. Mayor Luecke also added that if the Studebaker Industrial Park was the city's only industrial park, there might be cause for concern about that. But there is land in both 9 South Bend Redevelopment Commission Regular Meeting -March 14, 2008 6. NEW BUSINESS (CONT.) H. Other (3) continued... the Airport Industrial Park and in the Oliver Industrial Park. Mr. Peczkowski asked about the Wake Forest example. When businesses locate in the satellite region, who provides the building? Will the city be the developer for a building when an outgrowth business wants a building? Mr. McMahon responded that in the 100 technology parks studied as examples, there were a wide variety of models for that. He recommends Commissioners visit some of the most successful technology parks and learn about the models that worked for them. Mr. Peczkowski asked if the University of Notre Dame would be involved with the companies at that point. Mr. Brenner responded that the university will not be building their buildings, but will continue to offer support services to the companies as needed. Mr. Downes congratulated the university, Project Future and the city for having the vision to partner with the state to get this done. He believes it's the dawning of an exciting new age in South Bend. Upon a motion by Mr. Downes, seconded by Mr. Peczkowski and unanimously carried, the Commission authorized submission of the Certified Technology Park application to the Indiana Economic Development Corporation. COMMISSION AUTHORIZED SUBMISSION OF THE CERTIFIED TECHNOLOGY PARK APPLICATION TO THE INDIANA ECONOMIC DEVELOPMENT CORPORATION 10 South Bend Redevelopment Commission Regular Meeting -March 14, 2008 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area There was no business in the South Bend Central Development Area. B. Airport Economic Development Area (1) Commission ratification requested of Agreement between City of South Bend and Holladay Properties related to Property at 51270 Mayflower Rd. (Portage Prairie project) Mr. Inks noted that legal counsel has advised that the letter referred to in the agenda item as an Agreement should really be referred to as a Letter of Intent. Mr. Witwer noted that the Mayor signed a Letter of Intent with Holladay Properties for the purchase of the Sheehan property at 51270 Mayflower, which is needed for the Auten Road connector. The Auten Road connector will serve as one of the main pieces of infrastructure to Portage Prairie and will support the growth of that expected $300 million mixed use development. The Sheehan property is not currently in the city limits, nor in the Airport Economic Development Area, but the Sheehans want to relocate and sell that property now. In order to gain control of the property for the city's future use, Holladay Properties was willing to purchase it from the Sheehans and hold it until the city has annexed it. In the Letter of Intent, Mayor Luecke has promised to purchase the property from Holladay after annexation for the actual purchase price, not to exceed $300,000. Ratification is needed by the Redevelopment Commission. 11 South Bend Redevelopment Commission Regular Meeting -March 14, 2008 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (1) continued... Mr. Witwer noted that Holladay Properties has already closed on the Sheehan property with a purchase price of $282,500. The Commission will pay that price plus closing costs, not to exceed $300,000. Mr. Peczkowski asked why we are using Holladay Properties as a middle man to achieve purchase of the property. Mr. Witwer responded that the Commission cannot purchase property until it is within the city limits and within one of its development areas. That process is expected to take several years. The Sheehans are ready to sell now. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission ratified the Letter of Intent with Holladay Properties related to Property at 51270 Mayflower Rd. (Portage Prairie project) (2) Commission approval requested for Resolution No. 2344 accepting the transfer of property from the City of South Bend Board of Public Works. (Originally AEP property) Mr. Schalliol noted that AEP erroneously transferred a piece of property to the City of South Bend that should have been transferred to the Redevelopment Commission. The Board of Public Works accepted the transfer and has by resolution transferred it to the Commission. The Commission intends to COMMISSION RATIFIED THE LETTER OF INTENT WITH HOLLADAY PROPERTIES RELATED TO PROPERTY AT 51270 MAYFLOWER RD. (PORTAGE PRAIRIE PROJECT 12 South Bend Redevelopment Commission Regular Meeting -March 14, 2008 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (2) continued... replat the property and sell it as part of a technology based operation down the road. Upon a motion by Mr. Downes, seconded by Mr. Peczkowski and unanimously carried, the Commission approved Resolution No. 2344 accepting the transfer of property from the City of South Bend Board of Public Works. (Originally AEP property) (3) Commission approval requested for proposal for professional services in the Airport Economic Development Area. (Engineering, Storm Water Retention Ameritech Drive) Mr. Witwer noted that staff requested a proposal for drainage area calculations for a lot on Ameritech Drive. Staff has recently received inquiries from three separate parties interested in purchasing the lot. The lot serves as storm water retention for Ameritech Drive and future expansion for Ameritech Drive. The study will be done to determine if the retention area needed will leave a developable site. Abonmarche has submitted a proposal to complete the work for $4,600. Staff recommends approval. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal for drainage area calculations for a lot on Ameritech Drive and accepted the proposal from Abonmarch for the scope of services and fee proposed. COMMISSION APPROVED RESOLUTION NO. 2344 ACCEPTING THE TRANSFER OF PROPERTY FROM THE CITY OF SOUTH BEND BOARD OF PUBLIC WORKS. (ORIGINALLY AEP PROPERTY COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR DRAINAGE AREA CALCULATIONS FOR A LOT ON AMERITECH DRIVE AND ACCEPTED THE PROPOSAL FROM ABONMARCH FOR THE SCOPE OF SERVICES AND FEE PROPOSED 13 South Bend Redevelopment Commission Regular Meeting -March 14, 2008 6. NEW BUSINESS (CONT.) C. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. D. South Side Development Area There was no business in the South Side Development Area. E. Northeast Neighborhood Development Area (1) Commission approval requested for Resolution No. 2343 approving the execution of an Addendum to the Lease between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission for the Eddy Street Commons project. Mr. Inks noted that Resolution No. 2343 is related to the bond issue for Eddy Street Commons. The Commission previously approved the Lease with an interest rate set high, at 8%, anticipating the rate and resulting lease payments to be reduced when the bonds were actually sold. Ms. Sell, Baker & Daniels, noted that the Addendum to Lease adjusts the lease payment schedule to reflect the sale price of the bond. The actual interest rate is 5.4% Mr. Inks noted that the original lease payments approved were $1,800,00 annually. The Addendum sets them at $1,400,000, a savings of $400,000 annually. 14 South Bend Redevelopment Commission Regular Meeting -March 14, 2008 6. NEW BUSINESS (CONT.) E. Northeast Neighborhood Development Area (1) continued... Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2343 approving the execution of an Addendum to the Lease between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission for the Eddy Street Commons project. F. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. G. Ratification of Service Contracts Mr. Inks noted that the contracts entered into the past two weeks were with Wightman Petrie for Phase I environmental site assessments for properties on Western Ave. related to Coveleski Park. COMMISSION APPROVED RESOLUTION NO. 2343 APPROVING THE EXECUTION OF AN ADDENDUM TO THE LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT AUTHORITY AND THE SOUTH BEND REDEVELOPMENT COMMISSION FOR THE EDDY STREET COMMONS PROJECT Property Description Commission Role in Transaction Contractor Service Provided Contract Amount Staff Member 502 W. Western Acquisition Wightman Petrie Phase 1 ESA $1,800.00 Schalliol 416 W. Western Acquisition Wightman Petrie Phase 1 ESA $1,800.00 Schalliol TOTAL $3,600.00 Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission ratified the service contracts submitted March 14, 2008. Commission ratified the service contracts submitted March 14, 2008 15 South Bend Redevelopment Commission Regular Meeting -March 14, 2008 6. NEW BUSINESS (CONT.) H. Other (1) Filing of Resolution No. 2442 appropriating monies from the Redevelopment General Fund (Fund 433) for the purpose of paying for certain expenses incurred by the Redevelopment Commission and setting a public hearing on Resolution No. 2442 for 10:00 a.m., April 18, 2008. Mr. Inks noted that the appropriated funds would be used for legal expenses. The Commission passed a similar resolution in 2007 for allocating approximately $30,000. That money was not all used; some was carried forward to 2008. Therefore, Resolution No. 2442 only appropriates $15,000. The money left over from 2007 and the $15,000 appropriated in Resolution No. 2442 should be ample for legal expenses in 2008. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission accepted for filing Resolution No. 2442 appropriating monies from the Redevelopment General Fund (Fund 433) for the purpose of paying for certain expenses incurred by the Redevelopment Commission and setting a public hearing on Resolution No. 2442 for 10:00 a.m., April 18, 2008. (2) Commission authorization requested for Director of Redevelopment to sign subdivision plats for various subdivisions. Mr. Schalliol noted that over the last several months the Commission has authorized survey services for several subdivision COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 2442 APPROPRIATING MONIES FROM THE REDEVELOPMENT GENERAL FUND (FUND 433) FOR THE PURPOSE OF PAYING FOR CERTAIN EXPENSES INCURRED BY THE REDEVELOPMENT COMMISSION AND SETTING A PUBLIC HEARING ON RESOLUTION NO. 2442 FOR 10:00 A.M., APRIL 18, 2008 16 South Bend Redevelopment Commission Regular Meeting -March 14, 2008 6. NEW BUSINESS (CONT.) H. Other (2) continued... replats: Champion Drive Minor Subdivision, Champion Drive Major Subdivision, Eckler- Lahey Subdivision and Ireland Road Major Subdivision. These replats are being considered by the Area Plan Commission and will need to be signed over the next several weeks. It will move the projects along if Don Inks is authorized to sign the replats when they are approved by Area Plan. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission authorized the Director of Redevelopment to sign the specified subdivision plats. 7. PROGRESS REPORTS There was no report. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is scheduled for Friday, March 28, 2008 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Downes made a motion that the meeting be adjourned. Mr. Blake seconded the motion and the meeting was adjourned at 10:47 a.m. ~~ .. - ~a1~'E ;;ilis~ ~ .. .. . COMMISSION AUTHORIZED THE DIRECTOR OF REDEVELOPMENT TO SIGN THE SPECIFIED SUBDIVISION PLATS PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT ~I~ii~g;. . P :s ~ ~ ~.. 17