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HomeMy WebLinkAboutRM 09-04-92SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING September 4, 1992 10:00 A.M. Presiding Officer: Ms. Paula N. Auburn President 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Redevelopment Staff: News Media: kw Others: 1308 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Ms. Paula N. Auburn, President Mr. Michael Donoho, Secretary Mr. Philip J. Faccenda, Assistant Secretary Ms. Charlotte Huddleston Mr. Roman J. Piasecki, Vice President Ms. Jenny Pitts Manier Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Mr. K. C. Pocius, Economic Dev. Specialist Mr. Don Porter, South Bend Tribune Mr. Thom Howell, U -93 Ms. Rebecca Neiswender, Center City Associates Mr. James Cronk Ms. Auburn announced that the Executive Session held prior to the meeting would be continued following adjournment of the Regular Meeting. 2. APPROVAL OF MINUTES Upon a motion made by Ms. Huddleston, COMMISSION APPROVED THE MINUTES seconded by Mr. Faccenda and unanimously OF THE REGULAR MEETING OF AUGUST carried, the minutes of the Regular Meeting 21, 1992 of Friday, August 21, 1992, were approved. 3. APPROVAL OF CLAIMS ADMIN 1992 Tri- County News $ 194.24 Manpower 157.32 South Bend Tribune 260.00 VISA 138.90 Moody's Investors Service 3,300.00 South Bend Tribune 83.21 ADT Security Systems 1,046.50 TOTAL ADMIN 1992 $ 5,180.17 -1- South Bend Redevelopment Commission Regular Meeting - September 4, 1992 3. APPROVAL OF CLAIMS (Cont.) STUDEBAKER CORRIDOR BOND Gerald Berzai $ 550.00 Richard McCloskey 3,000.00 Policemen's Federal Credit Union 213,033.97 St. Joseph County Treasurer 6,966.03 St. Joseph County Clerk 63,800.00 Jerome Michaels 200.00 McCloskey & Associates 110.00 TOTAL STUDEBAKER CORRIDOR BOND $ 287,660.00 GRAND TOTAL $ 292,840.17 Upon a motion made by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission formally approved the claims submitted September 4, 1992. 4. COMMUNICATIONS (Ob�l There were no Communications. S. OLD BUSINESS a. Commission approval requested for Resolution No. 1093 commending James A. Cook for his dedication and attention to the City of South Bend. Mrs. Kolata noted that Jim Cook has moved out of the community. He participated in a number of activities that involved the Commission and its interests. Mrs. Kolata read aloud Resolution No. 1093. RESOLUTION NO. 1093 A RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION COMMENDING JAMES A. COOK FOR HIS DEDICATION AND ATTENTION TO THE CITY OF SOUTH BEND WHEREAS, many people express concern about urban problems and their impact upon the community; and -2- COMMISSION FORMALLY APPROVED THE CLAIMS SUBMITTED SEPTEMBER 4, 1992 THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Regular Meeting - September 4, 1992 5. OLD BUSINESS (Cont.) a. continued... WHEREAS, some people demonstrate their concern by personal involvement in the process of seeking solutions; and WHEREAS, a very few people are both willing and able to bring a degree of dedication and leadership that culminates in real, measurable progress enriching the life of the community; and WHEREAS, James A. Cook has shown such leadership by serving as President and a Board Member of Center City Associates, as a member of the Design Review Committee for the South Bend Central Development Area, as a local developer with an eye to bringing projects to Downtown and the East Bank, and as a Board Member of South Bend Heritage Foundation; and WHEREAS, on behalf of the citizens of South Bend, the Commission would like to express its appreciation to James A. Cook for his many contributions to our community and wish him well in his future endeavors. NOW, THEREFORE, BE IT RESOLVED, by the South Bend Redevelopment Commission, that the name of James A. Cook be engraved in the minutes of this meeting in commendation of his community service and dedicated work, and let it be known that the Commission's good wishes go with him as he moves to Steamboat Springs, Colorado. Adopted at a regular meeting of the South Bend Redevelopment Commission held on Friday, September 4, 1992, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana. Ms. Auburn expressed the Commission's regret that Mr. Cook was not able to be present at this meeting, but promised -3- South Bend Redevelopment Commission Regular Meeting - September 4, 1992 5. OLD BUSINESS (Cont.) a. continued... that the resolution would be forwarded to him. His commitment to the community and his vision for South Bend will be greatly missed. Upon a motion by Mr. Donoho, seconded by Ms. Huddleston and unanimously carried the Commission approved Resolution No. 1093 commending James A. Cook for his dedication and attention to the City of South Bend. b. Commission approval requested for Proposal from Pitcock Design Group for professional services related to the Morris Civic /Palais Royale project. Mrs. Kolata noted that the Redevelopment Authority now owns the Palais Royale. The fund raising for its renovation is moving ahead. Related to that is the need for certain materials such as letter head, pledge cards, a brochure, etc. This contract with Pitcock would provide for both the development and printing of those materials. The total cost is $47,635. Mr. Donoho noted that the proposal states that Pitcock will donate all revision time to the efforts of the fund drive. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission accepted the proposal from Pitcock Design Group for professional services related to the Morris Civic /Palais Royale project. Mrs. Kolata asked to add item 6.h. to the agenda, a proposal for appraisal services in the Studebaker Corridor Development Area. There was no objection and the item was added to the agenda. -4- COMMISSION APPROVED RESOLUTION NO. 1093 COMMENDING JAMES A. COOK FOR HIS DEDICATION AND ATTENTION TO THE CITY OF SOUTH BEND COMMISSION ACCEPTED THE PROPOSAL FROM PITCOCK DESIGN GROUP FOR PROFESSIONAL SERVICES RELATED TO THE MORRIS CIVIC /PALAIS ROYALE PROJECT ,,South Bend Redevelopment Commission Regular Meeting - September 4, 1992 6. NEW BUSINESS a. Public Hearing on Resolution No. 1090 appropriating money from the South Bend Central Allocation Area Special Fund to the Palais Royale Acauisition Protect Principal and Interest Account of the Redevelopment District Bond Fund. Mrs. Kolata explained that Resolution No. 1090 is related to the purchase of the Palais Royale building through bond funds. It appropriates $295,500 from the TIF General Account and sets it aside for three lease payments on the project. There needs to be this amount in the Principal and Interest Account so that it is not necessary to levy a tax in order to make lease payments. Mrs. Kolata noted that we have received the proofs of publication from the South Bend Tribune and Tri- County News stating that the Notice of Public Hearing was published August 28, 1992. Mrs. Kolata noted that following at approval of Resolution No. 1090 the allocation goes to the State Tax Board which has 15 days to disapprove. Ms. Auburn asked if there was any objection to entering the proofs of publication from the South Bend Tribune and Tri - County News into the record. There was no objection and the items were so entered. Ms. Auburn opened the Public Hearing for whoever wished to speak. There was no one who wished to speak. Ms. Auburn closed the Public Hearing for whatever action the Commission wished to take. b. Commission approval requested for Resolution No. 1090. Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1090 appropriating money from the South Bend Central Allocation Area Special Fund to -5- PUBLIC HEARING ON RESOLUTION NO. 1090 COMMISSION APPROVED RESOLUTION NO. 1090 APPROPRIATING MONEY FROM THE SOUTH BEND CENTRAL ALLOCATION AREA SPECIAL FUND TO THE PALAIS ROYALE ACQUISITION PROJECT South Bend Redevelopment Commission Regular Meeting - September 4, 1992 6. NEW BUSINESS (Cont.) b. continued... the Palais Royale Acquisition Project Principal and Interest Account of the Redevelopment District Bond Fun. c. Commission aouroval requested for Second Amendment to Lease with American Drug Stores. Ms. Manier explained that the Commission has had a lease with Osco Drug Store for a long time. That lease terminates this month. Under the lease agreement there is the ability to amend the lease to extend the term. The Second Amendment to Lease extends the lease for a period of three successive two year options. The first and second option are at the election of Osco. The third option period would need the approval of both the Commission and Osco. The rental has increased from approximately $17,000 per year to $34,461 for each year in the first two options and $45,948 for each year in the third option. Otherwise, the terms of the lease are the same as the previous lease. Mrs. Kolata noted that when we first entered into the lease with Osco, they spent considerable money on improvements. They waived their right to relocation payments if we asked them to move. However, we agreed to pay them for the depreciated value of the improvements. There was a subsequent problem with the roof and they repaired it and we amended the depreciation schedule. Both depreciation schedules have now expired. The reason for the longer term lease is that Osco's would like to make some additional expenditures in the building. They would like to be assured of the -- availability of the space. We still have the ability to give them 90 days notice -6- PRINCIPAL AND INTEREST ACCOUNT OF THE REDEVELOPMENT DISTRICT BOND FUND ,South Bend Redevelopment Commission Regular Meeting - September 4, 1992 6. NEW BUSINESS (Cont.) c. continued... to vacate if we have a development that needs the land. Upon a motion by Mr. Faccenda, seconded by Ms. Huddleston and unanimously carried, the Commission approved the Second Amendment to Lease with American Drug Stores. d. Commission approval requested for engineering proposal related to the Studebaker Corridor Development Area. Mr. Pocius explained that we requested engineering proposals for the development of a long term (3 -5 years), comprehensive capital improvements plan for the Studebaker Corridor. The items to be addressed in the proposals included: public works improvements, assessment of existing conditions, and a preliminary cost estimate for the project. The firms that responded were Bosh Design, Lawson- Fisher Associates, The Troyer Group, and Ken Herceg & Associates. The proposals were reviewed by Redevelopment staff and the Department of Engineering. The staff recommends accepting the proposal from The Troyer Group. The proposal from The Troyer Group was selected because it emphasized a multi - disciplinary approach to combine the technical engineering aspects of the project as well as landscaping, architectural considerations, and land use considerations. We felt that this methodology was important to the overall success of the project. Also, the engineering personnel of The Troyer Group has a proven track record and considerable experience in the design of industrial parks in this community. Finally, their methodology proposes to include real estate, development, and City input which will help reach a -7- COMMISSION APPROVED THE SECOND AMENDMENT TO LEASE WITH AMERICAN DRUG STORES South Bend Redevelopment Commission Regular Meeting - September 4, 1992 6. NEW BUSINESS (Cont.) d. continued... viable, market - driven solution. We felt their proposal stood out from the others because, in addition to addressing the various and multi- faceted technical aspects of the project, they addressed the image and saleability of the corridor. The Troyer Group's fee proposal is based on time and will not exceed $25,000. In addition, their fee for construction specification and drawings for the first construction phase would range from 6.2* to 7.2* of the construction cost. The Troyer Group will complete the data collection, the land use and infrastructure /planning phase, and the capital improvements plan by the end of the year. Mrs. Kolata noted that the proposals were reviewed by K.C. Pocius and Carl Littrell, and then by Jon Hunt and herself. All were in agreement on the selection of Troyer. We want to acknowledge that the proposal was written, in part, by Gerry Phipps, husband of Cheryl Phipps. This did not infuence the decision and Cheryl Phipps was not part of the decision making process. The selection was made totally on the merits of the proposal. Upon a motion by Ms. Huddleston, seconded by Mr. Donoho and unanimously carried, the Commission accepted the proposal from The Troyer Group for engineering services related to the Studebaker Corridor Development Area. e. Commission approval requested for Resolution No. 1095 authorizing the reimbursement to the City of South Bend AW- for expenditures made within the South Bend Central Development Area. -8- COMMISSION ACCEPTED THE PROPOSAL FROM THE TROYER GROUP FOR ENGINEERING SERVICES RELATED TO THE STUDEBAKER CORRIDOR DEVELOPMENT AREA "N South Bend Redevelopment Commission Regular Meeting - September 4, 1992 6. NEW BUSINESS (Cont.) e. continued... Mrs. Kolata explained that Resolution No. 1095 is for the reimbursement of $48,215.88 to the City of South Bend from the SBCDA tax increment fund for professional services provided by Gerard Hilferty Associates in connection with the College Football Hall of Fame. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1095 authorizing the reimbursement to the City of South Bend for expenditures made within the South Bend Central Development Area. f. Commission approval requested for Sublease with Monroe Park Associates. (Briarwood Development) Mrs. Kolata noted Monroe Park Associates is developing the town houses in Monroe Park on land that we acquired and awarded to them. Ms. Manier explained that Mr. McCalley has secured the tax credits for this project. The sublease is for 22 years to coincide with the lease between the Redevelopment Authority and the Redevelopment Commission for the underlying ground. We cannot transfer title to the property, which we purchased with bond funds, until we have paid off the bonds. Ms. Manier noted that construction is expected to begin on November 1, 1992 and to be completed by September 20, 1993. The lease /rental annually is what was bid, which is $7,502 per year. The lease contains an early termination buyout in case we are able to pay the bonds off early. Low The lease contains the standard terms about insurance, liability, -9- COMMISSION APPROVED RESOLUTION NO. 1095 AUTHORIZING REIMBURSEMENT TO THE CITY OF SOUTH BEND FOR EXPENDITURES MADE WITHIN THE SOUTH BEND CENTRAL DEVELOPMENT AREA ",South Bend Redevelopment Commission C.,. Regular Meeting - September 4, 1992 6. NEW BUSINESS (Cont.) f. continued... indemnification, and responsibility on the part of the sublessee. The Redevelopment Authority must also approve this lease. Mrs. Kolata noted that the design of the project was approved by the Design Review Committee several months ago and has gone downstate and received all necessary approvals. We are very pleased with the design of the project. Upon a motion by Ms. Huddleston, seconded by Mr. Donoho and unanimously carried, the Commission approved the Sublease with Monroe Park Associates. g. Commission approval requested for Third Addendum to Lease with South Bend Redevelopment Authority. (SBCDA Public Improvement Project) Mr. Manier explained that the 1990 Lease Rental Revenue Bond included a number of public improvements as the project of that bond. We have made minor adjustments to the accomplishments of that bond and the description of the project in the Lease differs from what was actually done. This Addendum to Lease properly identifies the description of the project. The changes include: 1) removing certain improvements which were not made; 2) removing certain properties in Monroe Park which were not acquired; 3) including certain properties which were purchased for rehabilitation; and 4) adding the design and construction work for the Madison Center Walkway. Mrs. Kolata noted the Addendum lists four properties in Monroe Park which are on the Commission's acquisition list. We expect to authorize purchase offers for at least three of these soon. If we don't make offers on all four, we will need to do another Addendum to remove the fourth property. -10- COMMISSION APPROVED THE SUBLEASE WITH MONROE PARK ASSOCIATES %South Bend Redevelopment Commission Regular Meeting - September 4, 1992 6. NEW BUSINESS (Cont.) g. continued... Upon a motion by Ms. Huddleston, seconded COMMISSION APPROVED THE THIRD by Mr. Faccenda and unanimously carried, ADDENDUM TO LEASE WITH THE SOUTH the Commission approved the Third BEND REDEVELOPMENT AUTHORITY. Addendum to Lease with the South Bend (1990 SOUTH BEND PUBLIC Redevelopment Authority (SBCDA Public IMPROVEMENT PROJECT) Improvement Project) h. Commission approval requested for proposals for appraisal services in the Studebaker Corridor Development Area. Mr. Pocius noted that we asked several appraisers to send proposals to provide disposition appraisals for the remaining parcels in Studebaker Corridor. After reviewing the proposals, the staff recommended hiring Richard McCloskey for a fee of $18,000 and Huntington Associates for a cost of $7,500. An important consideration in the selection was that the appraisals be completed by the end of September. Mr. Donoho asked the amount of the other appraisals. Mrs. Kolata responded that Doug Carpenter proposed to do the work for $8,000. The remaining quotes were higher since they were from MAI appraisers. Mr. Pocius commented that the staff recommendation was based on having one MAI appraiser and one non -MAI appraiser. Mrs. Kolata indicated that we could be satisfied with two non -MAI appraisers. Mr. Donoho indicated that he wished to pay the least amount to get the highest quality. Ms. Manier noted that since these appraisals are for disposition, we will not be going to court to prove the value and may not need the MAI designation. -11- %South Bend Redevelopment Commission Regular Meeting - September 4, 1992 6. NEW BUSINESS (Cont.) h. continued... Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission accepted the proposals from Doug Carpenter and Huntington & Associates for appraisal services in the Studebaker Corridor Development Area. 7. PROGRESS REPORTS There was no report. 8. NEXT COMMISSION MEETING 9. The next Regular Meeting of the Redevelopment Commission is scheduled for September 18, 1992 at 10:00 a.m. There being no further business to come before the Redevelopment Commission, Mr. Donoho made a motion that the meeting be adjourned. Mr. Faccenda seconded the motion and the meeting was adjourned at 11:03 a.m. COMMISSION ACCEPTED THE PROPOSALS FROM DOUGLAS CARPENTER AND FROM HUNTINGTON & ASSOCIATES FOR APPRAISAL SERVICES IN THE STUDEBAKER CORRIDOR DEVELOPMENT AREA PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT L:G"�.� -plc.. 4 �/ • � �� / � �Q Paula N. Auburn, President Ann E. Kolata, Director i -12-