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HomeMy WebLinkAboutSM 05-13-87May 13, 19 7 4:00 p.m. Presiding f 1. ROLL SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING ficer: Mr. F. Jay Nimtz President Members) Present: Legal ounsel: Redeve oDment Staff: Bureaulof Housing Staff: News Media: Others: 2. OLD BUSIINESS i 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Mr. F. Jay Nimtz, President Ms. Paula N. Auburn, Vice - President Mr. Roman J. Piasecki, Secretary Mr. Michael Donoho, Assistant Secretary Mr. Sandy Combs, Member Ms. Eugenia Schwartz Mr. Jon R. Hunt, Executive Director Mrs. Ann Kolata, Deputy Executive Director Mrs. Cheryl Phipps, Office Manager Ms. Hedy Robinson Ms. Kathy Baumgartner Ms. Jeanne Derbeck, South Bend Tribune Mr. Gary Seiber, WNDU -TV Mr. Lee Coulson, WSJV -TV Mr. Joe Pakii, WSJV -TV Mr. Dick Maginot, WSBT -TV Ms. Tracie Davis, WAOR Mr. Charles Clark, Holladay Corporation Mr. Robert Sowinski, CCA XVI Mr. Richard Best, CCA XVI Mr. Don Best, CCA XVI Mr. Robert Toothaker, CCA XVI Mr. Frederick Ritschard, CCA XVI Mr. Carter Wolf, Center City Associates a. Commission action on bids received for cels C4 -3 and C4 -30. Mr. Hunt noted that the Commission and Redevelopment Staff had conducted several meetings with the two development groups over the last several weeks to discuss the proposed projects. They have discussed in detail the costs, time -1- South Bend iRedevelopment Commission Special Me ting - May 13, 1987 2. OLD BUSINESS (Cont.) a. Continued... schedule, public assistance requirements, start dates, financing packaging and all aspects of each bid. He stated that both development groups have presented good bids. A representative from each group is here today to summarize each proposal. Mr. Clark, representing Washington /St. Joseph Associates (W /SJA), summarized their bid for parcels C4 -3 and C4 -30 as follows: He distributed copies of two site plans to the Commissioners. He indicated that the first, part of the original bid, called for an atrium connecting Phase I and Phase II which would block the existing service drive between parcel C4 -3 and C4 -30. He indicated that the total square footage of the two projects (130,000 s.f.) given in the original bid was a clerical error and that the cover letter submitted with the bid was accurate when it stated that the 150,000 s.f. minimum would be met. Phase I would cost $7.15 million, Phase II would cost $9.35 million, totalling $16.5 million. The second site plan showed Phase I, a seven story, 94,000 s.f. structure with 13,500 s.f. of first floor retail, and Phase II, a seven story, 56,000 s.f. structure both to be constructed on parcel C4 -3, leaving the existing service drive open. Parcel C4 -30 would be used to supply 87 parking spaces for tenants. The plan also included 32 parking spaces south of and 50 spaces below the proposed building. Mr. Clark noted that Phase I would require the commitment of 114 parking spaces from the Jefferson Street parking garage. He indicated that the additional parking needed upon the completion of Phase II would require some type of joint venture between a government agency or the City, such as a UDA , since a private developer cannot sup ort the cost of a commercial office -2- South Bend iRedevelopment Commission Special Meeting - May 13, 1987 2. OLD BUSINESS (Cont.) a. Continued... building and a parking structure with the re is received from both. Mr. Clark indicated that they would begin construction on Phase I in approximately 15 months, which would allow time for their One Michiana Square (OMS) building to be completely leased. Phase II would be in 24 months later. For the second site plan, Phase I would cost $10.4 million, Phase II would cost $6.2 million, totalling $16.5 million. Mr. Hunt asked if the 15 month start date was firm or if it was contingent upon the 100% leasing of the OMS building. Mr. Clark stated that they expected to have no problem leasing OMS but the 15 months was also the time necessary to prepare the plans and take bids on the con racting. Ms. Auburn asked if the square footage of the total project has been amended from 130,000 s.f. to 150,000 s.f. to comply with the bid specifications. Mr. Clark stated that in the original bid, the cov r letter stated that the project would total 150,000 s.f. but the proposal its if contained a clerical error stating 130,000 s.f. Ms. Auburn also asked about the change in total project cost. Mr. Clark stated that Mr. Phair gave the original estimate ($9 /s.f.) and that it was on the low sid . He said a project of this type cos s $110 /s.f. which would total $16.5 mil ion. Mr. Hunt again requested clarification on the project schedule. He asked if the con truction start date was July 1988 and com letion approximately July 1989, would the start date for Phase II be 24 months fro the completion date of Phase I? Mr. Cla k stated that it would be 12 months -3- South Bend Special Mee elopment Commission - May 13, 1987 2. OLD BUSINESS (Cont.) a. Continued... fro the end of Phase I construction: 12 months to build, 12 months to lease, and then begin Phase II construction. Mr. Sowinski, representing Combined Capital Associates XVI (CCA XVI), explained their bid proposal for parcel C4 -3. He indicated that they have not altered their bid since submitting it. They considered the minimum offering price of $94,900 for the parcel to be very fair and had no problem exceeding it to offer $100,000. Their proposal of a 71,000 s.f. office building would use the entire parcel and would meet the minimum height requirements and maintain the visual corridor from Century Center to the Court House. He pointed out how their proposed building met the set -back from St. Joseph Street requirement and was in line with the Jefferson Street gar ge. The total cost of the project would be $6,727,250, or $94.75/s.f. Ms. Auburn asked about their intention to connect to the Jefferson Street parking garage. Mr. Sowinski indicated that the building would connect to the garage at the second floor level. Ms. Auburn asked if they had prospective tenants. Mr. Sowinski indicated that theV have been talking with a lending institution which is interested in a drive-in bank at the location. Mr. Hunt asked about the drawing which showed two -way traffic in the one -way service drive. Mr. Sowinski indicated that it would be no problem to route the traffic to correspond to the one -way serivice drive. Mr. Hunt asked whether they had con truction financing in place. Mr. Sowinski explained that they have been tal ing with three large lending -4- South Bend Redevelopment Commission Special Me ting - May 13, 1987 2. OLD BU INESS (Cont.) a. Co tinued... in titutions which are interested, but wi 1 not commit until CCA XVI is awarded th bid. Mr. Piasecki asked about the construction schedule. Mr. Sowinski indicated that they would have the financing in place by October/November/December 1987; final construction drawings by No ember /December 1987; construction bi ding February /March 1988; begin co struction May 1988; and complete co struction October 1989. Mr. Hunt noted that the City Engineer had indicated that a connection to the garage was possible and that he was very sup ortive of it. Ms. Auburn asked about the qualifications of CCA XVI. Mr. Sowinski explained that the Combined Capital Group consists of five service corporations. They have 75 employees. It has been a quiet, low profile company; they deal with local investors; they own and rent the IBM Building; their management company manages and is responsible for the lease-up of St. Joseph Towers; and they own and manage 1500 to 2000 apartment units across Indiana. Combined Capital Ass ciates acquired Crestwood Gardens whea it was in gross disrepair and has don substantial rehabilitation and ref rbished it as Brendenwood Apartments. It 's a 143 unit apartment complex. They hav increased its occupancy from 50% to 100 . Combined Capital bought Sandpiper Squ re in Mishawaka when it had financial man gement problems and was 60% occupied. Its occupancy is now 100 %. Mr. Combs asked if Combined Capital has been involved in a project of this size from beginning to end. Mr. Sowinski responded that they have, and that they have also been contacted by various -5- South Bend Redevelopment Commission Special Me ting - May 13, 1987 2. OLD BUSINESS (Cont.) M tinued... lenders to finish projects other developers had not completed. They are constructing an on -site rental office and a community building at a 144 unit apartment complex in Fort Wayne. They ha e developed free standing commercial bu'ldings, Osco Drugs, and a 100 unit ap rtment complex. Mr. Nimtz noted that the staff and Co ission have spent considerable time Stu ying both bid proposals. He asked for a staff recommendation. Mr. Hunt read the bid specifications and design considerations for the two parcels and summarized the staff report which is attached to these minutes. He indicated that the staff recommended awarding the contract for bid to CCA XVI. He noted that the W /SJA bid was an all or nothing bid. He indicated that there was still a question about the start date of Phase II of the W /SJA bid. Also, they were requesting public assistance for the con truciton of a parking garage and the staff doesn't feel they can enter into a bin ing contract for that since the current formula for awarding UDAGs exc udes cities such as South Bend. Mr. Hunt also noted that the minimum off ring prices for the two parcels ($91,900 for parcel C4 -3 and $115,750 for par el C4 -30) were not set arbitrarily, but through two independent appraisers. He xplained that they were low because of 11 the restrictions the staff had pla ed on the property. Upon a motion by Ms. Auburn, seconded by Mr. Piasecki and unanimously carried, the Comiaission awarded the bid for Parcel C4-B to Combined Capital Associates XVI and authorized their officers to sign all nec ssary documents. COMMISSION AWARDED THE BID FOR PARCEL C4 -3 TO COMBINED CAPITAL ASSOCIATES XVI South Bend I Redevelopment Commission Special Me ting - May 13, 1987 2. OLD BUSINESS (Cont.) a. Codtinued... Mr � Nimtz recognized Mayor Roger 0. Pa ent. Mayor Parent noted that this is another major development in the redevelopment of do ntown South Bend. We have had lots of good news recently and we continue to have good news, especially as the sod is being laid in the baseball stadium. He thanked Combined Capital Associates XVI for their fine bid and noted that all the City can do is create a climate in which the private sector is interested in investing the redevelopment of the do ntown. 3. PROGRESS REPORTS There vAere no progress reports. 4. NEXT COMMISSION MEETING 5. The ne t Regular Meeting of the Redevelopment Commission will be Friday, May 22, 1987, at 10:00 a.m. There being no further business to come before the Commission, Mr. Combs made a motion that the meeting be adjourned. Mr. Piasecki seconded the motion and it was unanimously carried. The meeting was adjourned at 5:05 p.m. PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT Z-' - - - (�� J�0- /V � Pre 'dent J n R. Hunt, Executive Director -7-