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HomeMy WebLinkAboutRM 02-19-99• D! SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING February 19, 1999 10:00 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. Eugenia S. Schwartz, Secretary Members Absent: Mr. Hardie Blake Mr. Philip J. Faccenda Legal Counsel: Mr. Brian Steinke Redevelopment Staff: Mrs. Ann E. Kolata, Director Mrs. Vangelean Urbanski, Recording Secretary Mr. Owen Rock, Economic Development Specialist Mrs. Michele Bush, Economic Development Specialist Mr. Michael Giulioni, Economic Development Specialist Mr. Alex Koenig, Economic Development Specialist Planning and Neighborhood Dev. Mr. Lee Cotton, Neighborhood Planner Others: Rev. Donald L. Alford, Pentecostal Church Mr. Clayton E. Dailey, Sr., West Central Business Group Ms. Mussae Lois Muhammad Ms. Valerie M. Miller, Teachers Credit Union Ms. Ada Douglas Ms. Dea Andrews, South Bend Heritage Foundation Mr. Jed Eide, Architectural Design Group Mr. Alex Regnery, Architectural Design Group Mr. Kenny Kent Ms. Lois Holm Mr. John Howard, Welsh Oil Mr. Bill Shaver, Welsh Oil Mr. Randy Rompola, Baker & Daniels H AW PDATA \COMMSN\021999.M1N -1- I South Bend Redevelopment Commission Regular Meeting - February 19, 1999 2. APPROVAL OF MINUTES a. Commission approval of the Minutes of the Regular Meeting of February 5, 1999. Upon a motion by Mr. Donoho, seconded by Ms. Schwartz and unanimously carried, the Commission approved the Minutes of the Regular Meeting of February 5, 1999. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FEBRUARY 5, 1999 Redevelopment Commission Claims submitted February 19, 1999 for approval. 212 CDBG COMMUNITY DEVELOPMENT Business Systems, Inc. Baker & Daniels Tri County News, Inc. South Bend Tribune Alltel Gene's Camera Store Center for Urban Policy & the Environment American Electric Power Downtown Idea Exchange Ameritech American Planning Association Liability Insurance Department of Public Works NBD 324 FUND Reith Riley Project Future Shamrock Development Inc. Insty Prints Owners Association at Blackthorn Inc. Herman & Goetz, Inc. New Frontiers Landscaping Inc. Ken Herceg & Associates, Inc. HAWPDATA \C0MMSN\021999.MIN -2- $24.69 $2,151.05 $132.45 $170.68 $70.90 $5.73 $12.00 $35.55 $167.00 $26.86 $180.00 $842.00 $210.60 $25.00 $40,914.44 $5,834.40 $1,960.00 $8.00 $47,620.43 $609.62 $2,000.00 $5,930.00 I I South Bend Redevelopment Commission Regular Meeting - February 19, 1999 3. APPROVAL OF CLAIMS (CONT.) 414 SAMPLE -EWING FUND Metropolitan Title - Indiana, L.L.C. Grauvogel & Associates American Electric Power Dept of Code Enforcement Warner & Sons Inc. NIPSCO Ernest D. Willis R.E. Pitts & Associates, Inc. Grade -Rite Excavating, Inc. City of South Bend American Electric Power Triad Engineering Inc. 414 SAMPLE -EWING FUND Peirce & Associates 420 SBCDA GENERAL ACCOUNT Champion Bottled Water South Bend Water Works American Electric Power NIPSCO East Race Properties 619 BLACKTHORN Norwest Bank Indiana Ms. Schwartz mentioned that she had a conflict of interest on the two Claims for CB Richard Ellis /Sturges Bradley and asked that they be deleted from the Claims list. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the Claims submitted February 19, 1999, excluding two Claims for CB Richard Ellis /Sturges Bradley, and ordered the checks to be released. H:\WPDATA\COMMSN\021999.MfN -3- $5,110.00 $1,720.00 $286.00 $82.00 $47,011.00 $184.99 $950.00 $3,000.00 $1,200.00 $50.00 $355.18 $1,481.95 $4,500.00 $79.60 $150.79 $16.73 $2,373.88 $40,277.66 $213,000.00 COMMISSION APPROVED THE CLAIMS SUBMITTED FEBRUARY 19, 1999, EXCLUDING TWO CLAIMS FOR CB RICHARD ELLIS /STURGES BRADLEY, AND ORDERED THE CHECKS TO BE RELEASED South Bend Redevelopment Commission Regular Meeting - February 19, 1999 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS a. Public Hearing on Resolution No. 1667. Mrs. Kolata asked that the following items be entered into the record: (1) Affidavits from the Tri- County News and South Bend Tribune that the Notice of Public Hearing was published in those newspapers on January 29, 1999. Mrs. Kolata stated that the Notice of Public Hearing was published in the Tri- County News with an incorrect date in it and was republished in that newspaper on February 5, 1999, with the corrected date; (2) A statement from Owen Rock that a Statement to Taxing Units located within the Airport Economic Development Area was sent to the taxing jurisdictions on January 28, 1999; (3) A statement from Owen Rock that on January 29, 1999, copies of the Notice of Public Hearing were sent to the affected property owners and registered neighborhood associations. As of 10:00 am. this morning no written remonstrances were received. Mr. Rock presented a map of the Airport Economic Development Area to the Commission for its consideration. HAWPDATATOMMSM021999.MIN -4- THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) a. continued.... He stated that Expansion Areas No. 6 and 7 in the Airport Economic Development Area were annexed into the City in 1998. He also stated that Expansion Area No. 6 is a 20 -acre piece of land and is owned by Mr. Kidder. Expansion Area No. 7 is a 40 -acre piece of land and is also owned by Mr. Kidder. Expansion Area No. 8 is a 19 -acre piece of land that is owned by Dale Parks. This parcel of land would be added to the acquisition list and purchased in 1999. Resolution No. 1667 expands the Airport Economic Development Area by including r the areas identified as Expansion Areas No. 6,7 and 8. Mr. Hunt opened the public hearing for anyone who wished to speak regarding Resolution No. 1667. There was no one who wished to speak regarding Resolution No. 1667. Mr. Hunt closed the public hearing for whatever action the Commission wished to take. b. Commission approval requested for Resolution No. 1667 Amending the Airport Economic Development Area Development Plan. Upon a motion by Mr. Donoho, seconded COMMISSION ADOPTED RESOLUTION NO. 1667 by Ms. Schwartz and unanimously carried, AMENDING THE AIRPORT ECONOMIC the Commission adopted Resolution No. DEVELOPMENT AREA DEVELOPMENT PLAN 1667 Amending the Airport Economic Development Area Development Plan. HAWPDATATOMMSM021999.MIN -5- f South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) c. Public Hearing on Resolution No. 1669. Mrs. Kolata asked that the following items be entered into the record: (1) Affidavits from the Tri- County News and South Bend Tribune that the Notice of Public Hearing was published in those newspapers on January 29, 1999; (2) A statement from Lee Cotton that a Statement to Taxing Units located within the West Washington- Chapin Development Area was sent to the taxing jurisdictions on January 28, 1999; (3) A statement from Lee Cotton that on January 29, 1999, copies of the Notice of Public Hearing were sent to the affected property owners and registered neighborhood associations. As of 10:00 am. this morning no written remonstrances were received. Lee Cotton, Neighborhood Planner presented a map of the West Washington - Chapin Development Area to the Commission for its consideration. Mr. Cotton stated that there are two phases to Resolution No. 1669 amending the West Washington- Chapin Development Area Development Plan. Phase I includes expanding the West Washington- Chapin Development Area Development Plan by including Lots between Walnut Street to the west, Laurel Street to the east and all the Lots on the north side of Western Avenue in between Walnut and Laurel Streets. HAWPDATATOMMSM021999.MIN -6- a South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) c. continued.... Phase II includes acquiring four vacant Lots between the Pentecostal Church and the Elks Lodge on the north side of Western Avenue. Mr. Hunt opened the public hearing for anyone who wished to speak regarding Resolution No. 1669. Mr. Clayton Dailey, West Central Business Group, asked Mr. Cotton if he knows if the City owns any of the four Lots located next to the viaduct on the north side of Western Avenue and east of Walnut Street. Mr. Cotton stated that the City of South Bend owns the Lot farthest to the east of the four Lots located on the north side of Western Avenue and east of Walnut Street near the viaduct. Mr. Dailey asked Mr. Cotton if he knows who owns the other three lots near the viaduct on the north side of Western Avenue and on the east side of Walnut. Mr. Cotton stated that the other three Lots are privately owned. Mr. Dailey stated that amending the West Washington- Chapin Development Area Development Plan is a good idea and he would be in favor of adopting Resolution No. 1669. Dea Andrews of South Bend Heritage Foundation stated that they are in favor of adopting Resolution No. 1669. Rev. Donald Alford, President of the West Washington- Chapin Street Revitalization Project, stated that he supports adopting Resolution No. 1669. HAWPDATA \COMMSN\021999.M1N -7- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) c. continued.... Mr. Hunt asked if there was anyone who wished to speak in opposition to Resolution No. 1669. There was no one who wished to speak in opposition to Resolution No. 1669. Mr. Hunt closed the public hearing for whatever action the Commission wished to take. Mrs. Kolata stated that there is one minor change to Resolution No. 1669 since it was filed. She stated that on page six of Resolution No. 1669, item 11 was added. This states that the TIF for Expansion Area No. 2 shall expire December 31, 2028. This is a requirement of the state law, which went into effect approximately a year ago. d. Commission approval requested for Resolution No. 1669 Amending the West Washington- Chapin Development Area Development Plan. Upon a motion by Mr. Donoho, seconded by Ms. Schwartz and unanimously carried, the Commission adopted Resolution No. 1669 Amending the West Washington- Chapin Development Area Development Plan. e. Staff report on disposition of property in the South Bend Central Development Area. H AW PDATA \COMMSN\021999.MIN -8- COMMISSION ADOPTED RESOLUTION NO. 1669 AMENDING THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA DEVELOPMENT PLAN South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) e. continued.... Mrs. Kolata gave the following staff report. On February 5, 1999, a bid was submitted by Teachers Credit Union for Part of Disposition Parcel C4 -42 in the South Bend Central Development Area. Purchase Price —The purchase price is in the amount of $10 and other legal consideration. The proposal states that Teachers Credit Union will, as other legal consideration, release the City of South Bend from its contractual obligations under a lease dated October 12, 1984, and amended on November 17, 1986. This would release the City from its obligation under the Parking Lot Lease to construct a 109 -space parking garage for the benefit of Teachers Credit Union. The bid specifications sets the cost of this obligation at not less than $1,000,000. Recommendation: Acceptable The minimum offering price set by the Commission was $215,000, however, the bid specifications stated that the disposition of this property was subject to the terms of the October 12, 1984, Lease and its November 17, 1986, Amendment. The appraisals indicated that the cost of constructing the parking garage described in the Lease and Addendum was approximately $1,400,000 to $1,500,000. The bid from Teachers Credit Union estimates the cost of constructing the garage is $1,800,000. HAWPDATA \C0MMSN\021999.M1N -9- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) e. continued.... The value of being released from this obligation exceeds the minimum offering price of $215,000. Performance Guarantee —The bid did not include a faithful performance guarantee of 10 percent of the purchase price; however, Teachers Credit Union did submit a check for $10. Recommendation Acceptable —The developer should be required to execute the release of lease obligations at the time of closing on the purchase of this property. Project— Teachers Credit Union intends to use the property as a surface parking lot and submitted a preliminary Site Development Plan calling for 44 parking spaces. The design was drawn to facilitate the development of the entire block and the adjacent Leighton Center Parking Garage. Teachers Credit Union may use the property in the future for construction of another office building or parking complex. Recommendation: Acceptable —The bid specifications require that any development must further the overall development of the block as outlined in the Development Plan. The bid addresses that requirement as it refers to the 1984 decision by Teachers Credit Union to locate its corporate office in downtown South Bend. HAWPDATATOMMSM021999.MIN -10- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) e. continued.... A key factor in that decision was the commitment by the City to construct the parking garage identified in the Parking Lot Lease and Amendment. Without the commitment, Teachers Credit Union would not have located their corporate office downtown. Development of the property by Teachers Credit Union as a parking lot is important to its ability to continue to serve its members. Project Schedule— Teachers Credit Union did not submit a schedule for improvement to the property. Recommendation: Acceptable Issues — Teachers Credit Union has asked to modify the City's Standard Contract for Sale of Land and Quit Claim Deed for Private Redevelopment to remove provisions not applicable to this transaction. Teachers Credit Union bid is subject to the preparation and execution of a Purchase Agreement and Deed containing terms and conditions consistent with their proposal. Recommendation: Acceptable —The final document should be negotiated with the Commission's attorney and brought back to the Commission for final approval. The Leighton Plaza Parking Garage is constructed on a portion of the property covered by the Parking Lot Lease and Amendment. HAWPDATA \COMMSN\021999.M1N -11- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) e. continued.... Teachers Credit Union will release all rights to this area (the north 28 feet of Lot 27) in exchange for a five -year agreement to lease 16 parking spaces in the Leighton Plaza Garage at a rate of $22.00 per space per month. Recommendation: Acceptable —The staff recommends that, as payment for release of these rights, the City will pay the difference between $22 and the monthly parking rate for a five -year period. The total cost of this payment, assuming the current monthly parking rate of $35, is $12,480. The staff recommends accepting the bid from Teachers Credit Union. Ms. Schwartz stated that the bid from Teachers Credit Union brings into current reality and recognizes current circumstances on a project which the City, the Redevelopment Commission and Teachers Credit Union started back in 1984. At that time, Teachers Credit Union was at a location outside of downtown South Bend. Teachers Credit Union's members were very much keen on having immediate parking availability. At the time the Agreement was entered into back in 1984, there was not a large parking garage of the City's being constructed next door to Teachers Credit Union; HAW PDATA \COMMSN\021999.M1N -12- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) e. continued.... however, today there is a parking garage next door to Teachers Credit Union. The need for additional parking in downtown South Bend is being met in a different way. It is being met, in part, by using a part of the Lot which Teachers Credit Union has been using. She also stated that she feels that it is only fair for the City to compensate Teachers Credit Union, on a short-term basis, for the loss of their parking spaces, because that is an economic reality which Teachers Credit Union will have to face. Ms. Schwartz stated that the proposal is worth far more than the minimum offering price. The cost to the City of completing its obligation, which is still in place with Teachers Credit Union, will be far more than the minimum offering price. She also stated that she feels this is a good deal for the City. From an economic standpoint, the release of the Lease obligations is a significant benefit to the Commission and it frees up funds for the City to use in downtown in different ways. It also voids the City's needs to find those funds. She also stated that she feels there is no need for Teachers Credit Union to submit a performance bond, since Teachers Credit Union has already performed. H: \WPDATA \COMMSN\021999.MIN -13- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) e. continued.... It has a successful business located on its site and Teachers Credit Union stated that it plans to continue doing business at its current site in downtown South Bend. Ms. Schwartz stated that the fact that Teachers Credit Union did not submit a project schedule for improvement is irrelevant, because Teachers Credit Union is already in downtown South Bend. The Commission wants Teachers Credit Union to continue being in downtown South Bend and continue to be happy to be in downtown South Bend. This reflects on the long -term relationship which Teachers Credit Union has with downtown South Bend, and the Commission hopes that in the future Teachers Credit Union will want to stay downtown and expand its business. Ms. Schwartz commented that the City owns the parking lot to the east of Teachers Credit Union and the public has been able to use the Lot during non - business hours. The history of use of that Lot is that it has not been monitored nor has there been a security system in place during the evening hours as there is during Teachers Credit Union's business hours. She asked Val Miller if Teachers Credit Union would be willing to work with Center City Associates, to see if they can come to some kind of mutual arrangement which would enable the public to use the Lot in a responsible way and to continue to use the Lot during non - business hours. HAWPDATATOMMSM021999.MIN -14- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) e. continued.... She also stated that she hopes that could come about. Ms. Schwartz also stated that she is aware that there have been some security issues and problems in the past. Val Miller stated that Teachers Credit Union has been paying rent to the City for Teachers Credit Union's use of the parking lot next door to its place of business. She also stated the Teachers Credit Union is willing to pursue negotiations for public use of the lot during non - business hours; however, the security issues have been compounded in the last two or three years. Ms. Miller also stated that Teachers Credit Union's employees do not feel safe at night, due to the parking of all the restaurant patrons downtown, so much so that cars drive up on the sidewalk area, which totally block any ability to get any security or fire protection to the building. Teachers Credit Union has a lot of assets to protect, that is our primary short-term concern; the long -term concern is that we may decide to build on the site. Ms. Miller stated that since the City has extended public parking in the garage later at night, and she felt that is an important step, to open up other multi -level parking facilities in the evening, because there are a lot of people downtown during evening hours. Mrs. Kolata stated that the Leighton Plaza Garage will be open seven days a week. HAWPDATA \COMMSN\021999.M1N -15- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) e. continued.... Mrs. Kolata also mentioned that a study of downtown parking needs would take place in the next few months. Mrs. Schwartz made a motion to accept the staff report. Mr. Donoho seconded the motion and it was unanimously approved. f. Filing of Resolution No. 1670 Amending the Airport Economic Development Area Development Plan. Mrs. Kolata stated that Resolution No. 1670 adds the parcel identified as Parcel W to the acquisition list. This is the property included in the Amendment to the Airport Economic Development Area Development Plan as Expansion Area No. 8. She also stated that when the City purchased the land, which is now the U.S. 31 Industrial Park, from the Park Estate, the Park family indicated their interest in having Redevelopment acquire the 19 acres on the west side of the bypass. We agree that we would move forward with acquisition if the land was annexed into the City of South Bend. That annexation is now complete. The intended use of the 19 acres is to create residential development. Resolution No. 1670 also sets a public hearing for March 5, 1999, at 10:00 am. HAWPDATATOMMSM021999.MIN -16- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) g. Appointment of Design Review Committee Members of the West Washington- Chapin Development Area. Mrs. Kolata stated that the Plan for the West Washington- Chapin Development Area calls for an eight - person Design Review Committee. Two of the people are by title —the Director of Redevelopment and the City Building Commissioner. The other six are by appointment. Seven of the eight appointees are as follows: (1) Ann Kolata, Director of Redevelopment; (2) Don Fozo, Building Commissioner; (3) Lois Holm; (4) Eugenia Braboy; (5) Paul Hayden; (6) Tom Miller; (7) Melinda Rider. Mrs. Kolata also stated that the eighth member — Hollis Hughes —asked not to be re- appointed. The Neighborhood Association has been asked to send recommendations in terms of who might be interested in filling the vacancy on the Design Review Committee. Each member would serve a two -year term. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission appointed the Design Review Committee Members of the West Washington- Chapin Development Area. h. Commission approval requested for Loan and Grant in connection with the Affordable Loan Program for property at 1624 Warren St. (Ida Mae Evans) HAWPDATA \C0MMSN \021999.MIN -17- COMMISSION APPOINTED THE DESIGN REVIEW COMMITTEE MEMBERS OF THE WEST WASHINGTON - CHAPIN DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) h. continued.... Mrs. Kolata stated that the loan to Ida Mae Evans is in the amount of $8,250 at 2% interest for 15 years with monthly payments of $53.09. The grant is in the amount of $8,043.75. Upon a motion by Mr. Donoho, seconded by Ms. Schwartz and unanimously, the Commission approved the Loan and Grant in connection with the Affordable Loan Program for property at 1624 Warren St. (Ida Mae Evans) i. Commission approval requested for Parking Management Agreement with Ampco System Parking for the Wayne Garage. Mrs. Kolata asked permission to table item 6.i. There were no objections and item 6.i. was tabled. j. Commission approval requested for Lease with Catering by Billie, Inc. in the South Bend Central Development Area. Mrs. Kolata stated that the two -year Commercial Lease will begin on November 1, 1999, and end on October 31, 2000. The Lease will allow Catering by Billie, Inc. to continue occupying the space in the Wayne Street Parking Garage. The rent would be $1,836.75 per month over the two -year lease term. HAW PDATATOMMSM021999.MIN -18- COMMISSION APPROVED THE LOAN AND GRANT IN CONNECTION WITH THE AFFORADABLE LOAN PROGRAM FOR PROPERTY AT 1624 WARREN ST. ITEM 6.I. WAS TABLED South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) j. continued.... Upon a motion by Ms. Schwartz, seconded COMMISSION APPROVED THE LEASE WITH by Mr. Donoho and unanimously carried, CATERING BY BILLIE, INC. IN THE SOUTH BEND the Commission approved the Lease with CENTRAL DEVELOPMENT AREA Catering by Billie, Inc. in the South Bend Central Development Area. k. Commission approval requested for proposal from Grauvogel & Associates for an asbestos survey and demolition specifications in the Sample -Ewing Development Area. Mrs. Kolata stated that nine properties in the southeast neighborhood need an asbestos survey and demolition specifications prepared. Four of the properties are not yet owned by Redevelopment; therefore, the asbestos survey would not be conducted on those properties until they are owned by Redevelopment. The proposal received from Grauvogel & Associates is in the amount of $3,885.00. The staff recommends accepting the proposal, subject to striking the finance charge from the proposal. Upon a motion by Mr. Donoho, seconded by Ms. Schwartz and unanimously carried, the Commission accepted the proposal from Grauvogel & Associates in the amount of $3,885.00 for an asbestos survey and demolition specifications in the Sample -Ewing Development Area. H: \WPDATA \COMMSN\021999.MIN -19- COMMISSION ACCEPTED THE PROPOSAL FROM GRAUVOGEL & ASSOCIATES IN THE AMOUNT OF $3,885.00 FOR AN ASBESTOR SURVEY AND DEMOLITION SPECIFICATIONS IN THE SAMPLE- EWING DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) 1. Commission approval requested for Corporate Undertakings for properties in the Sample -Ewing Development Area. Mrs. Kolata stated that the properties are vacant Lots near 717 Pennsylvania and 726 Wenger. These properties are being acquired by eminent domain and the City has possession of these properties. The Corporate Undertakings assure the Title Company that the City will proceed with eminent domain. This will allow Redevelopment to transfer the properties to new property owners. Upon a motion by Ms. Schwartz, seconded COMMISSION APPROVED THE CORPORATE by Mr. Donoho and unanimously carried, UNDERTAKINGS FOR PROPERTIES IN THE SAMPLE - the Commission approved the Corporate EWING DEVELOPMENT AREA Undertakings for properties in the Sample - Ewing Development Area. m. Commission approval requested for Resolution No. 1671 approving a proposed lease between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission for the acquisition of certain land and removal of the improvements located thereon, approving preliminary plans and cost estimates, setting a public hearing on the proposed lease and authorizing publication of notice of public hearing. Mrs. Kolata stated that Resolution No. 1671 and the Lease are in connection with Redevelopment's interest in acquiring the H: \WPDATA \C0MMSN\021999.MIN -20- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) m. continued.... property at the corner of Main and Jefferson Streets and for the property north of the Studebaker Museum. In November 1997, the City of South Bend, as part of its application for Community Development Block Grant funds, requested and received approval from the Department of Housing and Urban Development for a Section 108 Loan. This is a loan against the future federal payments of Community Development Block Grant to the City of South Bend. The City has completed several Section 108 Loans in the past. The application which was submitted in November 1997 was for $2.4 million. The $1.8 million allocated is for the acquisition project at Main and Jefferson Streets and a Lot north of the Studebaker Museum at the corner of Monroe and Lafayette Street. There was $600,000 allocated for other projects in the city. The intent at that time was that the $600,000 would be paid back with funds from the Community Development Block Grant; however, the City would use other funds to repay the $1.8 million. These other funds would consist of Tax Increment and Economic Development Income Tax. The Department of Housing and Urban Development approved the Section 108 application, but when it came time to execute the documents, things started to get confusing because the City was not pledging the Community Development Block Grant funds to repay a portion of the loan. HAWPDATA \COMMSN\021999.M1N -21- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) m. continued.... Randy Rompola, Baker & Daniels, stated that the Lease is between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission. The Lease would provide security to satisfy the Department of Housing and Urban Development. The Section 108 Loan is a note which is issued by the borrower —the City —with a guarantee by HUD. HUD provides the credit and is looking to the City for a source of revenue to repay the note. The expectation of the City is to use both Tax Increment Financing and Economic Development Income Tax revenues to repay the note. It is necessary to structure the repayment mechanism as a Lease, since EDIT revenues are involved, to avoid a constitutional -debt limitation, which relates to the Economic Development Income Tax and not to Tax Increment Financing. The payment stream would be from the Redevelopment Commission to the Redevelopment Authority, which would then repay the note. The Lease provides for a term of 13 years. It is structured so that the Lease, as it relates to the Studebaker Lot, would be for the full 13 years. There is a four -year period of interest -only payments on the Section 108 Loan. The Lease has been structured so that the Lease payments match the debt service. During the first four years, only the Studebaker Lot will be leased, which has already been acquired and is able to be leased. At the end of the four -year period- 2003 — presumably all HAWPDATATOMMSM021999AIN -22- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) m. continued.... of the other property acquisitions and demolitions will be completed, the lease rental will increase to reflect the fact that the Studebaker Lot is now leasable and has been leased and coincides with the increase in the note repayment to HUD. Upon a motion by Mr. Donoho, seconded by Ms. Schwartz and unanimously carried, the Commission adopted Resolution No. 1671 approving a proposed lease between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission for the acquisition of certain land and removal of the improvements located thereon, approving preliminary plans and cost estimates, setting a public hearing on the proposed lease and authorizing publication of notice of public hearing. n. Commission approval requested for use of the Wayne Street Parking Garage for the "World's Largest Garage Sale" on Saturday, June 5, 1999, in the South Bend Central Development Area. Mrs. Kolata stated that a letter of request was received from the Parks & Recreation Department for use of the Wayne Street Parking Garage for the "World's Largest Garage Sale" on Saturday, June 5, 1999, in the South Bend Central Development Area. HAWPDATATOMMSM021999.MIN -23- COMMISSION ADOPTED RESOLUTION NO. 1671 APPROVING A PROPOSED LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT AUTHORITY AND THE SOUTH BEND REDEVELOPMENT COMMISSION FOR THE ACQUISITION OF CERTAIN LAND AND REMOVAL OF THE IMPROVEMENTS LOCATED THEREON, APPROVING PRELIMINARY PLANS AND COST ESTIMATES, SETTING A PUBLIC HEARING ON THE PROPOSED LEASE AND AUTHORIZING PUBLICATION OF NOTICE OF PUBLIC HEARING South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) n. continued.... She also noted that the Parks & Recreation Department would send an indemnification form upon receipt of approval from the Commission. Upon a motion by Ms. Schwartz, seconded by Mr. Donoho and unanimously carried, the Commission approved the use of the Wayne Street Parking Garage for the "World's Largest Garage Sale" on Saturday, June 5, 1999, in the South Bend Central Development Area. o. Commission approval requested for Contract with the City of South Bend ArK for Community Development Block Grant funds for South Gateway Improvements, Phase II (CD99- 8154). Mrs. Kolata stated that this Contract would award $112,177 for public improvements in the South Gateway area along Michigan Street between Garst and Calvert and wrap around the corners of all streets between Garst and Calvert and from Main Street to the west and St. Joseph to the east along Indiana Avenue. The improvements include sidewalks and curbs. The improvements are to be completed in 1999, which is the term of the Contract. HAWPDATATOMMSM021999.MIN -24- COMMISSION APPROVED THE USE OF THE WAYNE STREET PARKING GARAGE FOR THE "WORLD'S LARGEST GARAGE SALE" ON SATURDAY, JUNE 5, 1999, IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) o. continued.... Upon a motion by Ms. Schwartz, seconded Mr. Donoho and unanimously carried, the Commission approved the Contract with the City of South Bend for Community Development Block Grant funds for South Gateway Improvements, Phase II (CD99- 8154). p. Staff report on Design Review Issues in the Airport Economic Development Area. Owen Rock, Economic Development Specialist, presented a drawing of Welsh Oil's project in the U.S. 31 Industrial Park. He stated that Welsh Oil requested a variance in regard to their sign's height. "D" zoning allows a 35 ft sign. Welsh Oil wants a sign over 100 ft so it can be seen from the Toll Road. If Welsh Oil is not granted the variance, then it would be an economic hardship for its company. There are covenants for the U.S. Industrial Park. If the Board of Zoning Appeals approves the 100 ft sign, subsequently, the request for the variance would go before the Design Review Committee for the U.S. 31 Industrial Park. Welsh Oil would like to conduct a balloon test in order to find out if the sign could be seen from the Toll Road and at what height. Bill Shaver, Vice - President of Welsh Oil, stated that Welsh Oil is a privately owned company and is held by the Welsh family. HAWPDATATOMMSM021999.MIN -25- COMMISSION APPROVED THE CONTRACT WTIH THE CITY OF SOUTH BEND FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR SOUTH GATEWAY IMPROVEMENTS, PHASE II (CD99 -8154) South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) p. continued.... The company was started in March 1925 and it has been growing and growing ever since. Approximately two years ago, Welsh Oil purchased several Amoco sites in St. Joseph County. Mr. Shaver stated that the interstate highway customer is critical to Welsh Oil's business. Welsh Oil's proposed facility, which will be constructed on Brick Road, will cost over $3 million to develop. Welsh Oil asked Amoco to conduct a feasibility study on the site at Brick Road. Mr. Shaver stated that Welsh Oil has fleet cards, which are used mainly by trucking companies. The interstate travelers would help make the facility on Brick Road successful. He also stated that since the facility will be on an interstate location, Welsh Oil wants to have truck and car traffic. Amoco would assist Welsh Oil with the cost to construct its new facility. Mr. Shaver stated that Welsh Oil would consider placing the high -rise sign in a location where it would not be noticeable to other facilities in close proximity of the new Welsh Oil facility on Brick Road. He also stated that there would only be one pole but it could hold several signs and they would be willing to allow future businesses to add their signs to this pole. H: \WPDATA \C0MMSN\021999.MIN -26- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) p. continued.... Mr. Shaver stated that if Welsh Oil cannot identify the new facility as being an interstate highway location by installing the high -rise sign, then Amoco will withdraw its support. He also stated that Welsh Oil is willing to build the high -rise sign as low as it can be, as long as it can still be seen from the highway. Mr. Hunt asked Mr. Shaver where is the nearest service plaza on the Toll Road both east and west. Mr. Shaver stated that the nearest service plaza is approximately twenty miles away from Welsh Oil's facility on Brick Road. Mr. Shaver stated that the Speedway facility, which is near the location where Welsh Oil plans to develop its project, has a high -rise sign. Mr. Rock stated that Speedway was in the county and there were no restrictions on the height of the high -rise sign when its facility was developed. Mrs. Kolata stated that Speedway was annexed into the City after it was built. Mr. Hunt asked Mrs. Kolata if there are billboard options for Welsh Oil. Mrs. Kolata stated that the available billboard locations are currently being rented, and it is very hard to find an available billboard location. HAWPDATATOMMSM021999.MIN -27- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) p. continued.... She also stated that there are restrictions on where a new billboard can be located. Ms. Schwartz stated that it is the Board of Zoning Appeals which has the first say in whether a 100 ft high -rise sign can be installed on Welsh Oil's property on Brick Road. She also stated that maybe the Commission needs to take another look at the design standards created by the Commission. Ms. Schwartz stated that the Commission is reluctant to go outside of the Design Standards because a lot of time and effort was put into developing the Design Standards. She also stated that the Commission feels that it has a commitment to the property owners who are buying into the U.S. 31 Industrial Park. Ms. Schwartz stated that if the Commission is trying to market certain segments of the U.S. 31 Industrial Park for the kind of development Welsh Oil proposes to construct on Brick Road, then she feels that the background information Welsh Oil gave the Commission today gives the Commission a head start at opening up the question of allowing a high -rise sign on the Welsh Oil property in the U.S. 31 Industrial Park and looking at it more generally. HAWPDATMCOMMSM021999.MIN -28- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) p. continued.... Mrs. Kolata stated that at the time the Design Standards were written, the staff did not totally appreciate the commercial nature of the Lots along Brick Road. Mrs. Kolata stated that Welsh Oil has proposed signage for two locations as well as the location for high -rise sign. Mr. Hunt stated that every variance the Commission executes sets a precedent for the next person who decides to develop a project in the Airport Economic Development Area. Ms. Schwartz stated that the staff should look at the Design Standards in light of the potential usage that Welsh Oil pointed out to the Commission. Whatever Standards the Commission may adopt need to address the issues presented by Welsh Oil and also need to be looked at for reasonable investment expectations of other uses in the U.S. 31 Industrial Park. Mrs. Kolata stated that Welsh Oil's variance request will be presented to the Board of Zoning Appeals the third week in March. Mr. Howard stated that Welsh Oil would be willing to build a sign which is big enough for another company to also place their logo on the high -rise pole. HAWPDATA \C0MMSN\021999.M1N -29- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) p. continued.... Ms. Schwartz stated that the Commission does not have the authority to act today and does not have the staff investigation which it would need to act. She also stated that the Commission is not in a position today to direct the staff to act on the variance. The Commission does not want to act on variance requests on a case - by -case basis and go outside of the Architectural Design Review Standards. Ms. Schwartz stated that the Commission will direct the staff to review the Design Review Standards in light of what Welsh Oil has pointed out to the Commission today; however, the Commission cannot do more than that today. Mr. Hunt stated that the Commission would like the staff to review the Design Review Standards and come back to the March 5 Commission meeting with recommendations. Mr. Rock presented a drawing of John Sullivan's proposed site plan to the Commission for its consideration. Mr. Rock stated that John Sullivan proposes to build another building in the Blackthorn Corporate Park approximately the same size as his existing building. The proposed building will be approximately 8,500 sf. John Sullivan proposes to develop an extra parking lot, along with another curb cut Nimtz Parkway. HAWPDATATOMMSM021999.MIN -30- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) p. continued.... Mr. Rock stated that there are issues regarding the exterior of the building. Some individuals on the Architectural Design Review felt that there is too much vinyl siding on the proposed building. The staff would like to see a full masonry finish on the building. The Architectural Design Review Committee also felt that there wasn't enough room between the parking lot's setback to install enough bermming or landscaping. Mr. Rock commented that the latter could be worked out. He also stated that the other issue which needs to be addressed is the view of the wetlands. The Guidelines state that it is up to the discretion of the Architectural Design Review Committee to protect the view to the wetland so that it is not blocked. Mr. Rock commented that another developer in the Blackthorn Corporate Park wanted to use cedar finishing on the exterior of their building; however, the Commission strongly objected to the cedar siding. Mr. Rock stated that John Sullivan also has a height variance, which could be dealt with, but the exterior materials are really an issue. HAWPDATATOMMSM021999AN -31- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) p. continued.... Jed Eide, Architect Design Group, stated that John Sullivan purchased enough property and positioned his building so that he could build another building on his property. He also stated that John Sullivan's current business has been very successful and there is a need to expand. Mr. Eide stated that John Sullivan always envisioned building a "sister" building on the property. He stated that they felt that the "sister" building should show some relationship between itself and the current existing building. The original building is a combination of siding and brick. He also stated that since siding and brick were allowed for the original building, John Sullivan decided to go with a similar design for the "sister" building. Mr. Eide noted that Mr. Rock told him currently any buildings developed in the Blackthorn Corporate Park have to be masonry buildings. He stated that since the "sister" building had been under design for several months, being informed that their building has to be of masonry all around took them by surprise. Mr. Eide stated that getting a well designed building consists of more than just the exterior material. He also stated that when Architecture Design Group approaches the design of a building, it not only considers the exterior material but also the form of the building and how it relates to the structure —the opening, the site. H: \WPDATA \COMMSM021999.M1N -32- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) p. continued.... Mr. Eide stated that he feels the Commission's objective is to get a well designed building, which is in harmony with the site and other buildings on the site. Mr. Regnery, Architecture Design Group, presented a drawing of the John Sullivan project for the Commission's consideration. He stated that the project called for open space for open office work stations, which required a lot of glass. The project also called for support spaces, which do not call for a large amount of glass. Mr. Regnery presented a drawing of the project which showed the front view of the building. He stated that the main gable form "houses" the open office work stations. The building is a two -story building and the first level will be leasable tenant space. He also presented a drawing of the back view of the building, which has a large amount of glass windows overlooking the wetland area. Mr. Regnery stated that the "sister" building compliments the original building in form and material. Mrs. Kolata stated that the whole intent of the Guidelines and Covenants is to set out the vision for the Blackthorn Corporate Park. She also stated that the intent was that the buildings were to be constructed of masonry and glass. H: \WPDATA \COMMSN\021999.M1N -33- South Bend Redevelopment Commission Regular Meeting - February 19, 1999 6. NEW BUSINESS (CONT.) p. continued.... The Commission directed the staff to set up another meeting with the Architectural Design Review Committee to see if the issues could be worked out. 7. PROGRESS REPORTS 8. NEXT COMMISSION MEETING: The next Regular Meeting of the Redevelopment Commission is scheduled for March 5, 1999 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Ms. Schwartz made a motion that the meeting be adjgprrV7 Mr. Donoho seconded the motion jVe n was e t 12:05 p.m. Robert W. Hunt, President HAWPDATA \C0MMSN\021999.MIN ADJOURNMENT Ann E. Kolata, Director -34-