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HomeMy WebLinkAboutRM 07-02-93C; REDEVELOPMENT COMMISSION REGULAR MEETING July 2, 1993 Presiding: Paula N. Auburn President I. ROLL CALL 1308 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana Members Present: Ms. Paula N. Auburn, President Mr. Roman J. Piasecki, Vice- President Mr. Theo F. Sharp, Secretary Mr. Michael Donoho Mr. Philip Faccenda Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann Kolata, Director Mr. Jon Hunt, Executive Director Mrs. Cheryl Phipps, Recording Secretary Mr. David Norris, Economic Dev. Specialist Mr. James Riggs, Economic Dev. Specialist Media: Mr. Don Porter, South Bend Tribune Mr. Thom Howell, U -93 Ms. Diane Daniels, WSJV -TV Mr. Mark Peterson, WNDU -TV Mr. John Curtis, WNDU -TV Others: Mr. Michael Elbode, The Colfax Group Mr. Tom Brauer, Urban Design Group Mr. Munin Choudrey, Urban Design Group Mr. Ted Wolff, Wolff Associates Mr. Sam Gillespie, Trammell Crowe Mr. Jim Cierzniak Ms. Marie Giese, Indiana State Teachers Assn, Mr. Craig Fry, State Representative Mr. Mark Donoho Sherriff Joseph Nagy Mr. Walt Smith Mr. Greg Dalinski Mr. Carter Wolf, Center City Associates -1- 2. APPROVAL OF MINUTES a. AMroval of Minutes of the Regular Meeting of Friday, June 18, 1993. Upon a motion by Mr. Pmsecki, seconded by COMMISSION APPROVED THE MINUTES Mr. Sharp and unanimously carried, the OF THE REGULAR MEETING OF FRIDAY, Commission approved the Minutes of the JUNE 18, 1993 Regular Meeting of Friday, June 18, 1993. b. AWroval of Minutes of the Special Meeting of Thursday. June 24, 1993. Upon a motion by Mr. Donoho, seconded by COMMISSION APPROVED THE MINUTES Mr. Sharp and unanimously carried, the OF THE SPECIAL MEETING OF Commission approved the Minutes of the THURSDAY, JUNE 24, 1993 Special Meeting of Thursday, June 24, 1993. 3. APPROVAL OF CLAIMS I " ] I & M Power $ 6.00 South Bend Tribune 82.33 American Planning Association 125.00 Total Admin 1993 $ 213.33 Kia wifiv pro] 'ul V ►Y ►1':0 Warner & Sons $42,913.75 Total Redevelopment General $42,913.75 SBCDA TIF Englewood Electric $ 52.50 I & M Power Co. 461.46 South Bend Water Works 249.87 Total SBCDA TIF $ 763.83 -2- South Bend Redevelopment Commission Regular Meeting - July 2, 1993 3. APPROVAL OF CLAIMS (Cont.) 0:4: .. •..1�•' �• McCloskey & Pitts Total Studebaker Corridor Bond Grand Total Upon a motion by Mr. Sharp, seconded by Mr. Donoho and unanimously carried, the Commission approved the Claims submitted July 2, 1993. 4. COMMUNICATIONS There were no Communications. There was no Old Business. 6. NEW BUSINESS a. Receipt of bids for Disposition Parcels C4 -46 and C4 -65 in the South Bend Central Development Area. Mrs. Kolata noted that one bid was received for Disposition Parcels C4 -46 and C4 -65. That bid was from Trammell Crow MW, Inc., for $4.45 per square foot for 25,200 square feet with an option to acquire an additional 25,200 square feet. They submitted a faithful performance guarantee in the amount of $11,214. -3- 1,1 1,1 $ 1,500.00 $45,390.91 APPROVAL OF CLAIMS THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS RECEIPT OF BIDS FOR DISPOSITION PARCELS C4-46 AND C4-65 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - July 2, 1993 6. NEW BUSINESS (Cont.) a. continued... Mrs. Kolata noted that Trammell Crow proposes to construct two 60,000 square foot, four -story office buildings, built in phases, sharing a public plaza. They intend to maintain the visual corridor between Century Center and the Courthouse. They propose that the City commit to providing the funds to build and maintain the public plaza; ensure that a total of 400 parking spaces are available to the project in a parking garage to be built adjacent to Teachers Credit Union; and provide tax abatements normally available to projects of this size in a redevelopment area. The construction schedule submitted is as follows: execution of a contract for Sale of Land within 30 days of the award of bid; complete marketing materials within 60 days; have formal commitments from tenants for phase one in 180 days; and break ground on phase one in 240 days. With early tenant commitment and good construction weather the schedule could be reduced up to 120 days. The second building would be built upon substantial leasing and completion of the first phase, hopefully within one year of the first phase. The plaza would also be built in phases, with 60 percent built in connection with the first building and the remaining 40 percent in connection with the second building. The preliminary cost estimate for the City for phase one of the plaza. is $421,500 plus sculpture costs. Phase two is projected to cost $183,500. -4- South Bend Redevelopment Commission Regular Meeting - July 2, 1993 6. NEW BUSINESS (Cont.) a. continued... Mr. Gillespie gave some background on the Trammel Crow company and its team for this project. Trammell Crow MW Inc. is 45 years old. They have developed nearly 200,000,000 square feet of projects totalling over $8,000,000,000 in project cost. They are now a full service development company, offering property management, leasing, acquisition, facility management services, etc. They have worked with Urban Design Group for the design of the building and with Wolff Associates for design of the public plaza. Mr. Gillespie noted that a very important part of their proposal is the Multi - Employer Property Trust. The trust is a pooled real estate investment fund that invests in high quality real estate projects with solid underwriting, and is committed to putting money back into communities where those pension funds originated. They invest in only 100 % union built projects. Munin Choudrey, senior design partner for Urban Design Group, explained the site plan for the project. He noted that Urban Design Group has worked with Trammell Crow on many projects, both public and private. They tried laying the project out several different ways, deciding on this final plan which has a very urban character and maintains the visual corridor between Century Center and the County Courthouse which was important to the City. Although they are enthusiastic about the final plan, they consider it a conceptual plan and are willing to discuss -5- South Bend Redevelopment Commission Regular Meeting - July 2, 1993 6. NEW BUSINESS (Cont.) a. continued.. changes if the City has concerns which have not been addressed. The first building to be built will be constructed close to the corner of Jefferson and Main streets on the present Transpo lot. The second building will be built close to the corner of Jefferson and Michigan streets on the present Shoppers Lot. That will allow the Shoppers Lot to be used for parking for the first building until the parking garage can be built on the Teachers Credit Union parking lot. The buildings will be brick trimmed in Indiana limestone to coordinate with existing buildings in the downtown. Mr. Wolff explained the design of the public plaza. The public plaza will be T- shaped running north -south between the buildings and east -west along both buildings through the center of the block, along the present Teachers Credit Union and its parking lot. The main entrances to each building will be from the plaza, but the buildings will each have another entrance on the opposite side for convenience to Main and Michigan street traffic. He noted that they try to be particularly conscious of what people will want and need as part of a public place because a public place won't be used if it doesn't have the amenities people want and the ease of movement they need. There will be plenty of seating, sunlight, water, shade trees, flowers, etc. South Bend Redevelopment Commission Regular Meeting - July 2, 1993 6. NEW BUSINESS (Cont.) a. continued.. Mrs. Kolata noted that a portion of the site is still owned by Transpo. Transpo is aware that a developer was interested in the site and that we were taking bids on it today. We will follow the procedure that has been established for such a situation and will meet with the Joint Development Committee to discuss the bid. Mr. Carter Wolf expressed Center City Associates' support for the proposal overall, but noted that the businesses downtown need the short-term, one -hour parking that the Shoppers Lot provides. He hopes that that need will not be overlooked in favor of a public plaza. He noted that Center City Associates submitted a conceptual plan for the site about a year ago when another developer was looking at the site. He would like that plan to be taken into consideration. Mr. Wolf also noted that CCA would like to see first floor retail made available, especially in the building that fronts on Michigan Street and in the parking garage. Mr. Wolf noted that, although there is not currently a shortage of office space downtown, there is a shortage of large, class A office space. A number of large firms downtown need to expand and cannot find adequate space presently in the downtown. This project will address that need. It is a much needed project and first -class all the way. -7- South Bend Redevelopment Commission IW Regular Meeting - July 2, 1993 6. NEW BUSINESS (Cont.) a. continued... Mr. Mark Donoho, President of the Building Trades, expressed pride in being part of this project through the Multi - Employer Fund. This fund creates a nice cycle: money from the worker's pocket goes back into the community for community development then back into the pension fund for a nice return. Mr. Sharp stated that he feels the project has a lot of character, excellent urban design, and will be a real asset to the downtown and community. Ms. Auburn noted that the Commission has waited a long time to develop this prime piece of property. It is an exciting project for two reasons: 1) the design work is excellent, blending the need for office space with public amenities; and 2) the use of pension funds for community development. The Commission referred the bid to staff for review and recommendation at the next meeting. b. Receipt of bids for Dimsition Parcel 26 in the Sample -Ewing vel went Area. Mrs. Kolata reported that no bids were received as of 10:00 a.m. The parcel will remain available and proposals may be submitted by contacting the staff. c. Commission =royal requested for prop from The Troyer Group for engineering services in the Sample -Ewing Development Area. -8- NO BIDS WERE RECEIVED FOR PARCEL 26 IN THE SAMPLE -EWING DEVELOPMENT AREA Aro South Bend Redevelopment Commission Regular Meeting - July 2, 1993 6. NEW BUSINESS (Cont.) c. continued... Mrs. Kolata noted that this is actually an Amendment No. 2 to a contract the Commission currently has with The Troyer Group. It is for public improvements in the Studebaker Corridor portion of the development area. The Troyer Group will provide construction documents for certain public improvements and work through the construction of those improvements. The fee is 7.2 % of the construction cost, not to exceed $15,750, plus reimbursable out of pocket expenses. Mrs. Kolata noted that Gerry Phipps, the senior engineer for The Troyer Group, is the ev husband of Cheryl Phipps. Cheryl has had no involvement in this project at all. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission approved Amendment No. 2 to the Contract with The Troyer Group for engineering services in the Sample -Ewing Development Area. d. Commission av_nroval requested for Resolution No. 1174 determining to ply certain expenses incurred for local public improvements in or serving the Sample -Ewing Allocation Area (South Bend Allocation Area No. 8) from the Sample -Ewing Allocation Area (South Bend Allocation Area No. 8) Special Fund. Mrs. Kolata noted that Resolution No. 1174 appropriates $41,661.75 for use in the la COMMISSION APPROVED AMENDMENT NO. 2 TO THE CONTRACT WITH THE TROYER GROUP FOR ENGINEERING SERVICES IN THE SAMPLE -EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - July 2, 1993 6. NEW BUSINESS (Cont.) d. continued... Studebaker Corridor portion of the development area. This amount of money was received from an escrow account that was set up by the former owners of the Avanti Building for the purpose of covering environmental remediation on the site. The remediation is complete and the bills submitted have been reimbursed in this amount. The public hearing on this appropriation is set for 10:00 a.m. on July 16. Upon a motion by Mr. Piasecki, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1174 determining to pay certain expenses incurred for local public improvements in or serving the Sample -Ewing Allocation Area (South Bend Allocation Area No. 8) from the Sample -Ewing Allocation Area (South Bend Allocation Area No. 8) Special Fund. e. Commission approval requested for Resolution No. 1176 determining tax increment needed to satisfy obligations of the Commission regarding the West Washin on- Chapin Allocation Area (West Washington - Chapin Allocation Area No. 1A). Mrs. Kolata explained items 6.e., 6.f., 6.g., and 6.h. Each of these resolutions determines that the tax increment from each of the tax allocation areas is needed for improvements within the allocation area(s). We are required by state law to notify the County Auditor by July 15 of each year if we have surplus tax -10- COMMISSION APPROVED RESOLUTION NO. 1174 DETERMINING TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE SAMPLE -EWING ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 8) FROM THE SAMPLE -EWING ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 8) SPECIAL FUND South Bend Redevelopment Commission Regular Meeting - July 2, 1993 e. continued... increment. These resolutions state that we do not have any surplus increment. Upon a motion by Mr. Sharp, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1176 determining tax increment needed to satisfy obligations of the Commission regarding the West Washington - Chapin Allocation Area (West Washington - Chapin Allocation Area No. 1A) f. Commission approval requested for Resolution No. 1177 determining tax increment needed to satisfy obli gations of the Commission re rgft the South Bend Central Allocation Area (South Bend Central Allocation Area No. IAl Upon a motion by Mr. Sharp, seconded by Mr. Piasecid and unanimously carried, the Commission approved Resolution No. 1177 determining tax increment needed to satisfy obligations of the Commission regarding the South Bend Central Allocation Area (South Bend Central Allocation Area No. 1A). g. Commission approval requested for Resolution No. 1178 determining tax increment needed to satisfy obligations of the Commission regarding the Aimrt Economic Development Allocation Area No. 1. -11- COMMISSION APPROVED RESOLUTION NO. 1176 DETERMINING TAX INCREMENT NEEDED TO SATISFY OBLIGATIONS OF THE COMMISSION REGARDING THE WEST WASHINGTON - CHAPIN ALLOCATION AREA (WEST WASHINGTON- CHAPIN ALLOCATION AREA NO. 1A) COMMISSION APPROVED RESOLUTION NO. 1177 DETERMINING TAX INCREMENT NEEDED TO SATISFY OBLIGATIONS OF THE COMMISSION REGARDING THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND CENTRAL ALLOCATION AREA NO. 1A). South Bend Redevelopment Commission Regular Meeting - July 2, 1993 6. NEW BUSINESS (Cont.) g. continued... Upon a motion by Mr. Sharp, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1178 determining tax increment needed to satisfy obligations of the Commission regarding the Airport Economic Development Allocation Area No. 1. h. Commission approval requested for Resolution No. 1179 determining tax increment needed to satisfy obli gations of the Commission regarding the Sample -Ewing Allocation Area (South Bend Allocation Area X31 Upon a motion by Mr. Sharp, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1179 determining tax increment needed to satisfy obligations of the Commission regarding the Sample -Ewing Allocation Area (South Bend Allocation Area No. 8) i. Commission approval requested for substantive terms of Agreements for Brokerage Assignment for the Blackthorn Corporate Center in the Airport Economic Development Area. Mrs. Kolata noted that we are authorizing a series of agreements between real estate firms and Venterra for marketing Blackthorn Corporate Center. They have developed sales/marketing teams to market Blackthorn Corporate Center at a national and international level. At the local level -12- COMMISSION APPROVED RESOLUTION NO. 1178 DETERMINING TAX INCREMENT NEEDED TO SATISFY OBLIGATIONS OF THE COMMISSION REGARDING THE AIRPORT ECONOMIC DEVELOPMENT ALLOCATION AREA NO. 1 COMMISSION APPROVED RESOLUTION NO. 1179 DETERMINING TAX INCREMENT NEEDED TO SATISFY OBLIGATIONS OF THE COMMISSION REGARDING THE SAMPLE -EWING ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 8) South Bend Redevelopment Commission Regular Meeting - July 2, 1993 6. NEW BUSINESS (Cont.) i. continued... Venters has elected to work with Coldwell Banker. Seay and Thomas will market the land in the Chicago area and CB Commercial will market the land at the national and international level. CB Commercial is a large, nationally known firm. Each broker will be given a protection period of one year after the agreement expires so that any sales made as a result of their services will be credited to them and they will receive their full commission. The agreements run concurrently with the Commission's agreement with Venters which is until the end of 1997. Mrs. Kolata noted that this puts together a marketing team with some very qualified people on the local, regional, and national/international basis. There are strong incentives in the agreements for them to market and sell the land. We will be receiving monthly reports on their activity. Upon a motion by Mr. Piasecki, seconded by Mr. Faccenda and unanimously carried, the Commission approved the substantive terms of Agreement for Brokerage Assignment for the Blackthom Corporate Center in the Airport Economic Development Area. j. Commission aW val requested for 1993- 1994 marketing budget for Blackthorn Corporate Center in the Airport Economic Development Area. -13- COMMISSION APPROVED SUBSTANTIVE TERMS OF AGREEMENTS FOR BROKERAGE ASSIGNMENT FOR THE BLACKTHORN CORPORATE CENTER IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - July 2, 1993 6. NEW BUSINESS (Cont.) j. continued... The one -year budget is what Venterra estimates their first year costs to be. There is a substantial amount allowed for marketing materials which should be mostly one -time expenses. Upon a motion by Mr. Piasecki, seconded by COMMISSION APPROVED THE 1993 Mr. Faccenda and unanimously carried, the MARKETING BUDGET FOR BLACKTHORN Commission approved the 1993 marketing CORPORATE CENTER IN THE AIRPORT budget for Blackthorn Corporate Center in the ECONOMIC DEVELOPMENT AREA Airport Economic Development Area. k. Commission ap=v-al requested for pr=pl from Ken Herceg & Associates for Ch veering services in the West Washin on- Chapin Development Area. Mr. Norris explained that Ken Herceg has proposed to prepare specifications for the demolition of some buildings along Chapin Street as well as for the removal of two underground storage tanks on Chapin Street and one on West Washington. Ken Herceg coordinated the demolition on the 1200 block of West Washington Street for us and we were happy with his work. Mrs. Kolata noted that the fee is a not -to- exceed fee or $46,500 which includes writing the specifications, doing a phase one environmental assessment, a phase two environmental assessment, removal of at least two underground tanks, and sampling the tank contents. -14- South Bend Redevelopment Commission Regular Meeting - July 2, 1993 I continued... Upon a motion by Mr. Faccenda, seconded COMMISSION APPROVED THE PROPOSAL by Mr. Sharp and unanimously carried, the FROM KEN HERCEG & ASSOCIATES FOR Commission approved the proposal from Ken ENGINEERING SERVICES IN THE WEST Herce & Associates for engineering services WASHINGTON -CHAPIN DEVELOPMENT g g AREA FOR AN AMOUNT NOT TO EXCEED in the West Washington - Chapin Development $46,500 Area for an amount not to exceed $46,500. 1. Commission auoroval requested for appraisal services in the Sample -Ewing Development Area. Item 6.1. was tabled. ITEM 6.L. WAS TABLED 7. PROGRESS REPORTS AWK Sherriff Joseph Nagy gave a report in response to PROGRESS REPORTS the proposal of Tom Brademas presented at the June 16 meeting at which Mr. Brademas proposed rehabbing the Shetland Building in the Studebaker Corridor for use as a County Jail, based on a similar project in Houston, Texas. Mr. Nagy and others have inspected the Shetland Building and found a number of problems with its use as a jail, among which were prisoner movement in a multi -story building and the need to construct new walls within the present walls in order to have proper security for the level of prisoners which will be housed there. The Houston facility is a lower level security prison than St. Joseph County's is. • 1 1 • 1" 1 The next Regular Meeting of the Redevelopment NEXT COMMISSION MEETING Commission is scheduled for Friday, July 16, 1993 at 10:00 a.m. C; -15- South Bend Redevelopment Commission IW Regular Meeting - July 2, 1993 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Piasecki made a motion that the meeting be adjourned. Mr. Sharp seconded the motion and the meeting was adjourned at 11:30 a.m. Paula N. Auburn, President -16- ADJOURNMENT Ann E. Kolata, Director