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HomeMy WebLinkAboutSM 02-24-98SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING February 24, 1998 11:00 a.m. Presiding: Robert W. Hunt, President 1. ROLL CALL 1308 County -City Building 227 West Jefferson Boulevard South Bend, Indiana Members Present: Mr. Robert W. Hunt, President Mr. Michael Donoho, Vice - President Ms. Paula N. Auburn, Secretary Ms. Eugenia S. Schwartz Members Absent: Mr. Philip J. Faccenda Legal Counsel: Ms. Anne E. Bruneel Redevelopment Staff: Mrs. Ann E. Kolata, Director Ms. Vangelean Urbanski, Recording Secretary Mr. James Riggs, Economic Development Specialist Media: Mr. Terry Bland, South Bend Tribune Others: Mr. Steve Moerlein Mr. John Baxter, Center City Associates Mr. Doug Way, 1 st Source Bank Mr. Mike Hardy, Barnes & Thornburg 2. OLD BUSINESS a. Public Hearing on Resolution No. 1562. Mrs. Kolata asked that the following items be entered into the record: Affidavits from Lisa Andrysiak, Classified Manager of the Tri- County News and Carol Smith, Advertising Manager of the South Bend Tribune that the Notice of Hearing was published in those newspapers on February 13, 1998 and a memorandum from Mrs. Kolata that on February 10, 1998, she sent a copy of the Notice of 4- South Bend Redevelopment Commission Special Meeting - February 24, 1998 2. OLD BUSINESS (CONT.) a. continued.... Public Hearing to the affected property owner and registered neighborhood associations. As of 11:00 a.m., today, 0 remonstrances had been received. The purpose of Resolution No. 1562 is to amend the South Bend Central Development Area Development Plan by adding one property to the acquisition list. This property is identified on Exhibit A as tax key #18- 3007 -0227 and the owner is the 1 st Source Corporation. The property is in the quarter block that has been the subject of discussion at other Commission meetings, located at the southwest corner of Jefferson and Main Streets. This is one of four properties that the staff has recommended to the Commission to add to the acquisition list. The other three properties are the Barb's Restaurant building at 214 W. Jefferson, the Hardee's Restaurant and the C.E. Lee Building. These properties have all already been added to the acquisition list. The purpose for adding the property to the acquisition list is to move forward with the Plan that has been adopted by the Commission, which dates back to plans from the early 1970s with Area Plan's adoption of their Comprehensive Plan. The South Bend Central Development Area Development Plan was adopted in 1985 and the Michigan Street Corridor -2- South Bend Redevelopment Commission Special Meeting - February 24, 1998 2. OLD BUSINESS (CONT.) a. continued.... Plan also talks about some aspects of the downtown development. All of these Plans have had a consistent policy stating that the downtown needs to have a high density compact center. Mrs. Kolata presented to the Commission a site plan of the South Bend Central Development Area that highlighted the properties that have been added to the acquisition list and the property that is being considered today for acquisition. The blue outline shows the high density core area that has been identified and called for since 1965 in all plans for the downtown. The maroon outline is the Michigan Street Corridor that branches out on Western and Colfax Streets and it also branches out a little on Jefferson, Wayne and Washington Streets. The area shown in maroon is intended to have retail use, specifically first floor retail. There are two parcels located along Michigan Street that are identified in yellow on the site plan and are currently owned by the Redevelopment Commission. The dark blue areas on the site plan are public parking garages. The plan is to have each of these pieces of the plan work together to promote the high density core. To have high density office development, supported by public parking, within easy walking distance of the retail businesses that would be located within -3- South Bend Redevelopment Commission Special Meeting - February 24, 1998 2. OLD BUSINESS (CONT.) a. continued.... the downtown. Over the past few years, the staff has been working to identify future potential sites for Class A office development. They have identified five potential sites for Class A office development that are shown in green. These sites were also identified by the Real Estate Strategy Team, whom the Redevelopment staff has been working with to identify the office development sites. These areas have been identified as being possible locations for Class A office buildings, either corporate office or multitenant, but large scale, dense developments. The quarter block located at the corner of Main and Jefferson Streets is a smaller piece of property, approximately 33,000 sf. Barb's Restaurant, the C.E. Lee Building and the Hardee's Restaurant, all together do not provide the density or the type of development that is being encouraged for this core area. The three buildings and the parking lot are all underdeveloped and underutilized pieces of property. The C.E. Lee Building, although it's four stories and approximately 11,000 sf, probably could never be more than a Class B renovation. There currently is a large amount of Class B buildings in downtown. The Hardee's Restaurant is low density, in -4- South Bend Redevelopment Commission Special Meeting - February 24, 1998 2. OLD BUSINESS (CONT.) a. continued.... terms of its development. The Barb's Restaurant Building is totally vacant at the present time, even though the current owner has intentions of renovating it. Because of its floor plate of approximately 1,500 sf, it will never provide the type of dense development that the corner and that property deserves. The existing conditions on that site do not re- enforce, compliment or support the type of development that we are trying to achieve in the downtown. The acquisition and assemblage of these four properties into one site for corporate office development is in the best interest of the City, the Commission and the long- term plans for the downtown area. The concept of what will be required when this quarter block is disposed of would be a 50,000 to 75,000 sf Class A office building, either a single user or multiple users. The building must be three to four stories tall, urban style, masonry facade brought out to the corner to emphasize and anchor the corner of Main and Jefferson Streets where substantial buildings are already located (the Federal Courthouse, the Old First Bank Building) and being constructed at that corner (the Leighton Plaza Project) that warrants the type of dense development that is being proposed. The type of disposition requirements that -5- South Bend Redevelopment Commission Special Meeting - February 24, 1998 2. OLD BUSINESS (CONT.) a. continued.... will be put on that corner for anyone who would build there are expected to be: parking, if any, must be landscaped and buffered, the purchaser would need to work with other property owners in that block to coordinate a circulation and parking plan for the whole block, major public investment is not being looked at for that quarter block other than the acquisition and assemblage of the site, if public involvement beyond that is required, it would be limited to curb and sidewalk improvements and landscaping. Construction of another parking garage would not be approved. In accordance with the Common Council ordinance on tax abatement, any new development on the quarter block would be eligible for tax abatement. There currently is a need to make new sites available for Class A office development as the semi- annual survey of office buildings shows, approximately 95 percent occupancy in Class A office buildings. The five percent vacancy is split up and divided among a number of buildings. There currently are no large square footage spaces available in Class A office space for someone who is interested in moving downtown. It is necessary to have Class A office space available for someone who is looking to move into downtown. IM South Bend Redevelopment Commission Special Meeting - February 24, 1998 2. OLD BUSINESS (CONT.) a. continued.... In May of 1997, the Real Estate Strategy Team submitted a report to the City Council, the Mayor and the Redevelopment Commission stating that "The Mission of the office market strategy is to strengthen and improve the competitive position of South Bend's downtown office market within a regional office market place so that investors and owners find it both financially and economically feasible to invest in and own downtown office buildings and thereby contribute to the overall economic strength, vitality and viability of downtown South Bend." From that, the Real Estate Strategy Team developed a series of program goals and one of the goals is that "The public sector must provide for the orderly development of new Class A office buildings by creating new development sites as part of its overall downtown plan." The Real Estate Strategy Team specifically stated that, "The City should initiate specific acquisition activities as identified by the overall office development plan for specific development opportunities and landbanking of sites for future office development." The downtown plan calls for high density office development within the core area to build on the existing parking garages, to enhance the image, identity and the market of people downtown and to support the IL, South Bend Redevelopment Commission Special Meeting - February 24, 1998 2. OLD BUSINESS (CONT.) a. continued.... retail spine that is part of the plan by putting the high density development close to those conveniences, retail and restaurant operations, because all of this strengthens the visibility and prestige of downtown which will help the market. The corner of Jefferson and Main Streets calls for a significant office building of 50,000 to 75,000 sf. The staff recommends adding the property currently owned by the 1 st Source Corporation and leased to the Hardee's Restaurant to the acquisition list. The lease between Hardee's Restaurant and the 1 st Source Corporation, related to the parcel that is being considered for acquisition today, expires in the year 2000. Mr. Hunt opened the public hearing for anyone who wished to speak regarding Resolution No. 1562. There was no one who wished to speak. Mr. Hunt closed the public hearing for whatever action the Commission wished to take. Ms. Auburn stated that the assemblage of a property such as this is critical. b. Commission approval requested for Resolution No. 1562 amending the South Bend Central Development Area Development Plan. -8- South Bend Redevelopment Commission Special Meeting - February 24, 1998 3. OLD BUSINESS (CONT.) Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission adopted Resolution No. 1562 amending the South Bend Central Development Area Development Plan. Ms. Schwartz abstained. Mrs. Kolata asked permission to add item 2.c. to the agenda. There were no objections and item 2.c. was added. c. Commission approval requested for Contract for Purchase and Sale of Property in the South Bend Central Development Area. Anne Bruneel stated that this contract is for the property currently owned by the 1 st Source Corporation, tax key #18 -3007- 0227, which has been added to the acquisition list through Resolution No. 1562. She stated that there have been discussions with the 1 st Source Corporation regarding this property and their property that surrounds that Trigon Building. An agreement has been reached with the 1 st Source Corporation and some of the terms are as follows: a purchase price of $105,000 for the property just added to the acquisition list, which is an average of two appraisals that were completed on the property; a condition that the City will first acquire the balance of the property as necessary to assemble the office site; the Commission will assist the 1 st Source In COMMISSION ADOPTED RESOLUTION NO. 1562 AMENDING THE SOUTH BEND CENTRAL DEVELOPMENT AREA DEVELOPMENT PLAN ADDED ITEM 2. C. South Bend Redevelopment Commission Special Meeting - February 24, 1998 2. OLD BUSINESS (CONT.) c. continued.... Corporation in its efforts to enhance its existing Jefferson Street parking lot, possibly with acquisition or conveyance to the seller of additional property. Doug Way stated that the parking issue was that, at the end of the lease with Hardee's, there would not be a renewal of the lease and that the parking lot would be specifically contributed to the First Bank Building customers, visitors and employees. He also stated that 1 st Source Corporation did not want stand in the way of the development of the downtown property. That is important, he felt, to everyone with a business in the downtown. Upon a motion by Ms. Auburn, seconded by Mr. Donoho and unanimously carried, the Commission approved the Contract for Sale and Purchase of Property in the South Bend Central Development Area. Ms. Schwartz abstained. There were no Progress Reports. -10- COMMISSION APPROVED THE CONTRACT FOR SALE AND PURCHASE OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Special Meeting - February 24, 1998 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is scheduled for March 6, 1998 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come ADJOURNMENT before the Redevelopment Commission, Ms. Auburn made a motion that the meeting be adjourn . Donoho seconded the motion e eeting was ad' urned at 11:32 a.m. Robert W. Hunt, President Ann E. Kolata, Director -11-