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Home My WebLink AboutRM 05-08-87May 8, 19 7 10:00 a.m Presiding Officer: 1. ROLL Membe$s Present: SOUTH BEND REDEVELOPMENT COMMISSION REGULAR SCHEDULED MEETING Mr. F. Jay Nimtz President Legal Counsel: Redevelopment Staff: Bureau of Housing Staff: News Media: Other: 2. APPROV L OF MINUTES 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 Mr. Rick Pitts Ms. Kathy Baumgartner Ms. Jeanne Derbeck, South Bend Tribune Mr. Gary Sieber, WNDU -TV Mr. Carter Wolf, Director, Center City Associates Mr. Hu t noted that the April 24 minutes should state that Mr. Nimtz abstained from voting on Salvation Army perpetual easement. Upon a motion made by Mr. Combs, seconded by Ms. Auburn and unanimously carried, the minute of the Regular Meeting of Friday, April 24, 1987 were approved as corrected. 3. APPROVAL OF Upon a motion made by Ms. Auburn, seconded by Mr. Do oho and unanimously carried, the Commission formally approved the claims submitted April 27 and May 4, 1987, and ordered checks dated May 1 and May 8, 1987, to be relelased. -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR METING OF FRIDAY, APRIL 24, 1987 COMMISSION FORMALLY APPROVED THE CLAIMS SUMBITTED APRIL 27 AND MAY 4, 1987 AND ORDERED CHECKS DATED MAY 1 AND MAY 8, 1987 TO BE RELEASED South Bend Redevelopment Commission Regular Meeting - May 8, 1987 3. APPROVAL OF CLAIMS (Cont.) P.E.A. R 66 BOMA International Calculated Industries Federal Express South Bend Flight, Inc Service America Simom Publications Zuch lli- Hunter Associates Business Systems The Executive Program Gene al Fund (C.I.T.) Indiana Bell Telephone Cher 1 Phipps Service America Star Temporary Services otal P.E.A. R -66 T.I.FI. 1985 Weiss Homes Weaver Electric & Heating Co. Cole Associates, Inc. State Barricading Co. Colip Electric Co. Tptal T.I.F. 1985 ELOPMENT BONDS - 1972 Tri -C unty News Total Redevelopment Bonds - 1972 GRAND TOTAL 4. COMMUNICATIONS There were no communications. 5. OLD BUSINESS a. Introduction of Carter Wolf, Executive Director, Center City Associates, Inc. -2- $ 41.00 33.45 130.58 615.41 28.80 21.45 3,202.61 126.75 18.34 209.19 107.52 10.00 91.92 236.00 $ 4,873.02 $ 200.10 297.00 912.00 745.40 4,680.00 $ 6,834.50 $ 82.59 $ 82.59 $11,790.11 THERE WERE NO COMMUNICATIONS South Be d Redevelopment Commission Regular eeting - May 8, 1987 5. OLD USINESS (Cont.) a. Continued... Mr. Pitts introduced Carter Wolf, the new INTRODUCTION OF CARTER WOLF, Executive Director of Center City DIRECTOR, CENTER CITY ASSOCIATES, Associates. Mr. Wolf is a lifelong INC. resident of South Bend and was most recently employed as the Director of the Main Street program in Elkhart. 6. NEW BUSINESS a. Commission approval requested for a .proposal and loan in connection with the Section 312 Loan Program in accordance with the recommendation from the Bureau f Housing. Name Contractor Proposal Loan Geraldine Johnson Townsend Construction Co. $ 19,588.00 $20,700.00 1144 W. Jefferson Mr. Hunt noted that the loan for 20,700.00 is for 20 years at 3 %. Ms. Baumgartner pointed out that the addendum to the contract proposes painting the garage instead of siding it. Upon a motion by Mr. Combs, seconded by COMMISSION APPROVED THE PROPOSAL Ms. Auburn and unanimously carried, the AND LOAN IN CONNECTION WITH THE Commission approved the proposal and loan SECTION 312 LOAN PROGRAM LISTED in connection with the Section 312 Loan ABOVE Program as listed above. b. qommission action on bids received for arcels C4 -3 and C4 -30. . Hunt noted that the full Commission d met in Executive Session with the dders from 7:30 a.m. that morning until e beginning of the Regular development Commission Meeting. He ted that it was the first time one of e Commissioners had been able to meet th the other Commissioners and the dders regarding the bids. Mr. Nimtz dicated that they would call a Special development Commission Meeting dnesday, May 13 at 4:00 p.m. to make a cision on the bids. lam COMMISSION POSTPONED ACTION ON BIDS RECEIVED FOR PARCELS C4 -3 AND C4 -30 South :e d Redevelopment Commission Regular eeting - May 8, 1987 7. PROG ESS REPORTS Mr. Hunt noted that the pedestrian walkway along the river south of LaSalle Street is comp ete. The work on Michigan Street is proceeding on schedule. The Midwest Regional NAHR (National Association of Housing and Redevelopment Officials) Conference will be held at Century Center May 19 - May 22. Ann Kola a has put together a series of seminars and panels concerning Economic and Community Development issues for the conference. A walking tour along the riverbank and a bus tour through the Studebaker Corridor area are also planned. Mr. imtz noted that the Executive Session will reconvene immediately following this meeting. 8. NEXTICOMMISSION MEETING 91 The next meeting of the Redevelopment Commission will be the Special Meeting to be held Wednesday, May 13, 1987, 4:00 p.m. The next Regular Meeting of the Commission will be Friday, May 22, 1987 at 10:00 a.m. There being no further business to come before the Commission, Mr. Donoho made a motion that the meeting be adjourned. Ms. Auburn seconded the motion and it was unanimously carried. The meeting was adjourned at 10:25 a.m. Pres -4- PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT �cry n R. 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JOSEPH ASSOCIATES (W /SJA) PARTNERS: Wallace F. Holladay, John T. Phair, Charles G. Clark & Limited Partners. (B) COMBINED CAPITAL ASSOCIATES XVI (CCA XVI) PARTNERS: Robert A. Sowinski, Robert B. Toothaker, Donald E. Best, Jr., Richard L. Best & Frederick R. Ritschard, III. (A) W /SJA: $ 94,901 (B) CCA XVI: $100,000 (A) W /SJA: $115,751 (B) CCA XVI: $ No Bid NOTE: W /SJA PARTNERSHIP INDICATES THAT THE BID IS ALL OR NONE. W /SJA BID $210,652 (MIN. BID - $210,650). GUARANTY (A) W /SJA: Check submitted in the amount of $21,065.20. (B) CCA XVI: Letter of Credit in the amount of $10,000 from Valley American Bank. NOTE: Both Performance Guaranty Methods Acceptable. IV. PROJECT DESCRIPTION: (A) W /SJA: A 130,000 s. f. building to be coiistructed.in two phases. The first phase of 60,000 s.f. will be co structed on Parcel C4 -3 and an overhead connection will be made to the - - -. - - - -Je ferson Street--- Municipa- l —Park ng -- Garage -. -- -The- second -of -f- c-e---bui-ldi-ng--o-f-------- 70 000 s.f. will be constructed at a later date on Parcel C4 -30. A public at ium will connect the two buildings. NOTE: W /SJA stated in their cover letter of April 3, 1987 that the mi imum requirements of 150,000 s.f. will be met. The site plan indicates a development of 130,000 s.f. The developer's representative indicated that the 150,000 s.f. commitment in the letter will be met. It is not Cl Ear what the size of Phase One or Phase Two will be. (B) CCA XVI: The developer intends to co struct an office building of a minimum of 6 5,000 s.f. to house V. a fe st sinesses, professional services, a financial institution and possibly a staurant. A drive- through bank will also be included in the project and second story connection will be made to the Jefferson Street Municipal rking Garage. NOTE: The developer's representative indicated that the total ject size, excluding the atrium will be 71,000 gross s.f. KING PLAN: (A) W /SJA: Phase I would be connected to the sting parking garage south of Parcel C4 -3. The developer intends to lize Parcel C4 -30 for interim parking for Phase I until start of struction on Phase II. The parking plans for Phase II are somewhat lear. The developer indicates that they would consider structural king, but that the construction of such a parking facility would uire public participation to make the construction economically sible. A UDAG is suggested as one possible funding source for the uctural parking. (B) CCA XVI: The developer indicates that the building would be connected to the municipal parking garage south of pa cel C4 -3. NOTE: Both parcels are located in the CBD parking exempt zone which means that the parking requirements contained in the local ordinance would not have to be met by either developer. Practicality and market co siderations tell us that both developers must answer some of their parking needs. Our plans to develop a new parking garage behind the IB -St. Joseph Bank Complex will reduce the pressure on the Jefferson Parking Garage and open additional spaces. Phase I of the W /SJA and CCA XV 's project can both utilize the Jefferson Street facility. Serious co cerns are raised by W /SJA's Phase II's dependence upon public as istance in terms of providing financing for structural parking. Until th UDAG funding formula is revised, the City of South Bend will not be co petitive for UDAG funding. VI. DESIGN CONSIDERATIONS: (A) W /SJA: The minimum height requirement may be met by the proposed project. The visual corridor is not maintained though some open space exists to the south of the project, between the building and the Jefferson Street Parking Garage. For Parcel C4 -30 (Phase Two), the proposed building is not located along the north and west property' lines as suggested by the design considerations contained in the bid documents. Also, the developer's proposal is unclear about the design. - -- - -- consideration for the use of-the- ground floor i.e: --- that - -all- fi -rst -f leasable space should be restaurant or retail space. (B) CCA XVI: The minimum height of 70' is met by the proposed design and the north one -half of the visual corridor is maintained by the open construction nature of the east -west atrium. NOTE: The visual corridor runs on an east -west line from the Century Ce ter front doors to the doors of the County Court House. All development plans including Gruen's, American Cities, and Century Mall tried to bring the two buildings together through the use of a visual an /or pedestrian corridor. VII. BID SPECIFICATIONS: (A) W /SJA: The minimum development requirements of 65,000 s.f. and 85,000 s.f. were not met according to the project size figures on the site plan. However, the developer indicates in the cover letter for the bid that the 150,000 s.f. minimum development requirement will be met. The buildings present design with its "s w- tooth" shape on the St. Joseph St. and Michigan St. sides does not reinforce the street edge. The primary building material is proposed as brick. (B) CCA XVI: The 65,000 s.f. proposal meets th minimum bid requirements. The building as shown on the site plan reinforces the St. Joseph Street edge. Some questions have been raised co cerning the pedestrian scale of the proposed design and concerns about th building material proposed, i.e., metal and glass. VIII. ESTIMATED PROJECT COSTS: NOTE: All project costs are in line with local conditions and as umed market conditions. IX. PROJECT CONSTRUCTION SCHEDULE: (A) W /SJA: The developer proposes to begin construction on Phase I within 15 months of the date of award. Assuming the award of bid by the first week of May 1987, the developer would begin construction by July 1988. (1) Begin Construction of Phase I 7/88 (2) Complete Phase I 7/89 (3) Begin Construction of Phase II 7/90 (4) Complete Phase -31- ___. _ 7/91 (B) CCA XVI: The developer proposes the following schedule: (1) Final Site Plan /Rendering 5/87 (2) Construction /Permanent Financing Approval 10/87 (3) Construction Bidding 2/88 (4) Begin Construction 4/88 (5) Complete Construction 10/89 (A) W /SJA Project (B) CCA XVI: (1) TOTAL (2) PSF (1) TOTAL (2) _PSF La d $ 210,652 $ 1.40 Land $ 100,000 $ 1.41 Walkway 200,000 1.33 Skywalk 125,000 1.76 Hard Costs 7,500,000 50.00 Direct Structural 3,675,000 51.76 Soft Costs 2,700,000 18.00 Direct Site 135,000 1.90 Te ant Finishes 2,250,000 15.00 Tenant Finishes 1,136,000 16.00 Start-Up Expenses 499,500 3.33 Indirect Costs 1,556,250 21.92 $13,360,152 $89.06 $6,727,250 $94.75 NOTE: All project costs are in line with local conditions and as umed market conditions. IX. PROJECT CONSTRUCTION SCHEDULE: (A) W /SJA: The developer proposes to begin construction on Phase I within 15 months of the date of award. Assuming the award of bid by the first week of May 1987, the developer would begin construction by July 1988. (1) Begin Construction of Phase I 7/88 (2) Complete Phase I 7/89 (3) Begin Construction of Phase II 7/90 (4) Complete Phase -31- ___. _ 7/91 (B) CCA XVI: The developer proposes the following schedule: (1) Final Site Plan /Rendering 5/87 (2) Construction /Permanent Financing Approval 10/87 (3) Construction Bidding 2/88 (4) Begin Construction 4/88 (5) Complete Construction 10/89 NOTE: Phase II of the W /SJA partnership is scheduled to begin proximately 24 months after Phase I (7/90 or 7/91) or "as the market 7tates." We need to clarify the schedule for the W /SJA proposal. X. PUBLIC ASSISTANCE Both bidders have indicated that they will apply for real property tax abatement. Both bidders can qualify for a ten year abatement, e.g., Phase I of the W /SJA group and on CCA XVI's proposal. W /SJA's Phase II eligibility for a ten year abatement could hinge on how the parking issue is handled or the use of the first floor, e_g., retail. The W /SJA group has suggested that a DDAG or other public financial as istance will be required to meet the structural parking requirements on Parcel C4 -30. Neither bidder has asked for additional public assistance, e. j., public improvements, etc. XI. PROJECT FINANCING: Neither bidder has secured construction or permanent financing for th project at this time. Both bidders have indicated that financing can be secured in time to meet their proposed construction schedule. XII. OT3ER ISSUES: 17/j The W /SJA partnership's proposal would require that the service drive be vacated and relocated.