HomeMy WebLinkAbout03-28-08 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
March 28, 2008
10:00 a.m. 227 West Jefferson Boulevard
Presiding: Karl King, Vice-President South Bend, Indiana
1. ROLL CALL
Members Present:
Members Absent:
Legal Counsel:
Mr. Karl King, Vice President
Mr. Greg Downes, Secretary
Mr. Hardie Blake, Jr.
Mr. Ken Peczkowski
Ms. Marcia Jones, President
Mr. Charles S. Leone, Esq.
Mr. Lawrence Meteiver, Esq.
Redevelopment Staf£ Mrs. Cheryl Phipps, Recording Secretary
Mr. Bill Schalliol, Economic Development Specialist
Ms. Jennifer Laurent, Economic Development Specialist
Mr. Nicholas Witwer, Economic Development Specialist
Ms. Debrah Jennings, Property Manager
Others Present: Mr. Tom Price, Mayor's Office
Mr. Jeff Gibney, Executive Director
Ms. Jamie Loo, South Bend Tribune
Ms. GlendaRae Hernandez
Ms. Linda Wolfson, Community Forum for Economic Dev
Mr. Martin Wolfson, Community Forum for Economic Dev
Mr. Michael Divita, Community Development
Mr. Chris Dressel, Community Development
Ms. Pamela Meyer, Community Development
Mr. Jeff Vitton, Community Development
Mr. Bill Eagan, Human Rights Commission
Mr. Henry Davis, Common Council
Mr. Fred Aiehele
Mr. Joe Radecki
Mr. Michael Moore
Mr. Chris Derrickson
Ms. Amy Hill
Mr. Ed Richey
Ms. Pam Richey
Mr. Pat O'Connell
Mr. John O'Connell
Mr. Jack Seifer
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
1. ROLL CALL (CONT.)
2. APPROVAL OF MINUTES
Mr. Dan Jaworski
Sister Laureen Painter
Ms. Paula Johnson
Mr. Abe Washington
Ms. Jean Hanrahan
Mr. Bernie Bolka, Hereaus Kulzer
A. Approval of Minutes of the Regular Meeting of
Friday, March 14, 2008.
Upon a motion by Mr. Downes, seconded by Mr.
Peczkowski and unanimously carried, the
Commission approved the Minutes of the Regular
Meeting of Friday, March 14, 2008.
3. APPROVAL OF CLAIMS
COMMISSION APPROVED THE MINUTES OF THE
REGULAR MEETING OF FRIDAY, MARCH 14,
ZooB
Redevelopment Commission Claims submitted March 28, 2008 for approval.
324 AIRPORT AEDA
Ralph D Lauver 5,700.00
Jerome E. Michaels, MAI 4,400.00
Meadowbrook Golf Group Inc 36,000.00
414 SAMPLE EWING GENERAL
Indiana Michigan Power 6.88
South bend Water Works 178.16
420 FUND TIF DISTRICT-SBCDA
GENERAL
City of South Bend 6,846.88
The Troyer Group 10,056.80
Ampco System Parking 1,648.70
Indiana Michigan Power 176.07
AT & T 66.29
CB Richard 46.56
Clean Air Environmental Service 7,484.00
430 FUND SOUTH SIDE DEVELOPMENT
Lehman & Lehman 5,250.00
Total $ 77,860.34
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South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
3. APPROVAL OF CLAIMS (CONT.)
Mr. Peczkowski asked what the claims to the City of
South Bend and The Troyer Group were for. Ms.
Laurent responded that she believed they were both for
the Michigan Street streetscape.
Upon a motion by Mr. Downes, seconded by Mr. King
and unanimously carried, the Commission approved the
Claims submitted March 28, 2008, and ordered checks
to be released
4. COMMUNICATIONS
There were no Communications.
5. OLD BUSINESS
There was no Old Business.
6. NEW BUSINESS
A. Public Hearing
(1) Public Hearing on Resolution No. 2441
amending the South Bend Central
Development Area Development Plan.
(adding Wayne St, William St., and
Western Ave. properties to Acquisition
List)
Mr. Schalliol noted that Resolution No. 2441
will add nine properties to the Acquisition
List of the South Bend Central Development
Area Development Plan. Mr. Schalliol noted
that the Public Hearing file is complete,
containing a copy of Amended Resolution
No. 2441, a copy of the Notice of Hearing,
affidavits from the South Bend Tribune and
Tri-County News that the Notice of Hearing
was published in those newspapers on
March 14, 2008, a memo from Bill Schalliol
COMMISSION APPROVED THE CLAIMS
SUBMITTED MARCH 28, 2008, AND ORDERED
THE CHECKS TO BE RELEASED
THERE WERE NO COMMUNICATIONS
THERE WAS NO OLD BUSINESS
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
A. Public Hearing
(1) continued...
that on March 14, 2008 affected property
owners and registered neighborhood
associations were notified of the Public
Hearing. There was one written remonstrance
received from Diamond Associates asking
that their property at 405 W. Wayne be
removed from the Acquisition List. That
request resulted in Amended Resolution
No. 2441 which omits 405 W. Wayne St. and
contains only nine properties for the
Acquisition List.
Mr. Schalliol made a presentation on the
Coveleski Park master plan related to this
resolution, and Resolution Nos. 2432 and
2433. The master planning looked at two
components, the ballpark itself and the
surrounding neighborhood. Previously the
Commission approved Resolution No. 2385
which amended the boundaries of the South
Bend Central Development Area and added
twenty-one parcels to the acquisition list. He
showed a slide illustrating where the
properties from both resolutions were
located.
ID PARCEL ID OWNER OF RECORD ADDRESS
1 18-3013-0501 Chevy World Rental, Inc. Adj. to 401 W. Western
2 18-3013-0477 Fannie Zubkoff c/o Ronald
Zubkoff 414 S. William
3 18-3013-0468 Daniel Jaworski 415 S. William
4 18-3013-0474 Jack & Pamela Richey 416 S. Western
5 18-3012-0422 Dave & Sharon Henderson 323 S. William
6
18-3012-0421 Clifford Eugene Shaw 1/2 &
Oneida Joan Park I/2
319 S. William
4
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
A. Public Hearing
(1) continued...
18-3012- SW Corner of William &
~ GMS Realty, Inc.
042001 Wa ne
Y
8 18-3013-0465 TRC Glass 502 W. Western
9 18-3013-0467 TRC Glass 502 W. Western
Mr. Schalliol noted that Resolutions
No. 2432 and 2432 related to the purchase of
the Chevy World properties on the southwest
corner of Western and Lafayette. Resolution
No. 2432 sets the value of the property for
sending a purchase offer and Resolution
No. 2433 accepts a negotiated counter offer
from Gates.
Mr. Schalliol also showed a chart of what has
been spent to date on professional services
toward acquisition of the entire Coveleski
Park project. $184,000 has been spent on
professional services, after acquisition of
Chevy World and 332 W. Jefferson, $1.7M
will have been spent on property acquisition,
and $1.3M on other related activities.
Mr. Schalliol noted that staff has been
working with HOK Sport to develop
concepts for new entrances and new features
for the Cove; short, medium and long term
strategies trying to create a vision for the
park and the adjacent neighborhood; and
looking at how the park enters off of
Franklin, William and Monroe, as well as the
existing entrances off of South and Taylor
Streets. We anticipate having definitive steps
to move forward with by April.
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
A. Public Hearing
(1) continued...
From a land planning side, we've been
looking at two-way access to the park from
William St. On Wayne and Washington we
anticipate doing infill housing.
For a timeline today we anticipate adding
properties to acquisition list and buying
Chevy World, taking possession of that on
September 1, beginning demolition
immediately, having the site cleared by
spring 2009, with connector streets, and basic
improvements to the ballpark ready by
baseball season 2010. We'd hope to have
private investment going on at the same time
as public investment.
Mr. King opened the Public Hearing for PusLic HEARING oN RESOLUTION No. 2441
whoever wished to speak regarding Amended
Resolution No. 2441. He asked for
comments in favor first. There were no
comments in favor. He asked for comments
against Resolution No. 2441.
FRED AICHELE: 20175 Indiana School Rd,
Lakeville. I'm the owner of Fred's
Transmission and Clutch at 507 W. Western
Ave. I don't know that I'm basically against
this plan. I didn't know whether to stand for
or against it, but I had some concerns. One
of my major concerns is that everything is
getting bought up around me, and I'm sitting
there. I don't know what that's going to do
to me and I understand from everything I've
read and heard that we really don't know
what we're doing with all these properties
yet. But I see a property here that's as far
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South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
A. Public Hearing
(1) continued...
north as Jefferson getting purchased, and I
don't mind not getting purchased if my
property values go up and I continue having
a reasonably good retail business there. But
right now I'm wondering, because we're
buying the Gates Chevy World building,
we're going to begin immediate demolition
on that apparently, and I just wonder what's
going to happen to me in the surrounding
area here. I know you guys don't have a lot
of answers, but are there any answers at all?
MR. KING: Thank you Mr. Aichele. What
we'll do after we hear everyone's comments,
I'll ask Mr. Schalliol to come up and address
these questions.
DAN JAWORSKI: My residence is included
in the redevelopment area, 415 S. William.
As this gentleman previously stated, I'm not
sure I'm for or against this matter. However,
I would like to know if the city's position is
that this is a project that would benefit the
public, too, or is this just to benefit more
private enterprise in the area, more for
Coveleski.
MR. KING: We'll see to it that question gets
answered.
There being no one else who wished to speak
regarding Resolution No. 2441, Mr. King
closed the public hearing for whatever action
the Commission wished to take.
7
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
A. Public Hearing
(2) Commission approval requested for
Resolution No. 2441.
Mr. Schalliol responded to Mr. Aichele. The
acquisition list was generated was through
input from property owners who wanted to
talk about being acquired, starting with what
their properties might be worth. We didn't
originally to acquire Richey's Radiator, and
we still haven't had conversation with them
about acquisition, but the only way the
Commission can start the process is to put
the property on the Acquisition List. We've
gotten appraisals, we've gotten some title
work done, we've gotten some
environmental assessments on several of the
properties around you. We've had
conversations with Paul from your
organization. The conversation with Paul
was that he's not ready yet. We will talk
again with your company when we have
more information. Our intention would be to
leave in place as much of the local business
that's in the neighborhood. Maybe this
somewhat addresses the second question.
While we see that we need to make some
public improvements in and around the
ballpark, the intent of the planning process
will be to bring residential, new commercial
and new recreational opportunities to the
area. We want to keep business. We
anticipate a plan that adds new commercial
enterprise to the area. We'd certainly
encourage you to continue doing business at
your location. If at some point in time you
feel that the climate has changed and you
want to move on, much like Harmon Glass
made that business decision, Mr. Schalliol
8
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
A. Public Hearing
(2) continued...
said he would be happy to talk to Mr.
Aichele about acquisition.
To address Mr. Jaworski's question, Mr.
Schalliol said the plan anticipates residential,
commercial, and recreational plans for the
ballpark improvements. We want to have as
many uses in the area as we can. While we
don't have an overly specific plan at this
time, site control is the key. Until we have
site control, it's tough to be overly specific
on what your plans can be. We're working
to get some site control. That will help us
formulate plans to move forward.
Mr. Peczkowsk: I have been opposed to this
project from the beginning on several
grounds. Among them, who does this
benefit? I have had reservations as to who is
the main beneficiary of all the money that's
going to be spent on this project. Our
population in the last decade led Indiana in
decline. I think that the luxury of a ballpark,
while it has been an asset to the city and, as
we are trying to assess right now, perhaps an
underdeveloped asset, that we haven't
completely assessed what that asset is. What
is the attendance at single-A ballparks as
opposed to double-A and triple-A ballparks
which HOK has more experience with. Their
previous proposals have dealt with ballparks
that have larger audiences and I don't see
that ours is going to change. Are we going to
go to a double-A? Are we going to go to a
triple-A franchise? We've been averaging
between two and three thousand people per
9
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
A. Public Hearing
(2) continued...
game the past years. With that kind of
attendance, do we want to expand a ballpark
so that it can accommodate 7,500 - 10,000
people as the original projects we're looking
at. Those numbers are subject to change, but
why do we need 10,000 seats if we're only
getting 2,000 people? The numbers don't
seem to be there.
Secondly, the immediate beneficiary is the
baseball team. The fact that it's partially
owned by a previous mayor of South Bend
may be just a coincidence. And perhaps not.
I did see that the first beneficiaries of the
purchases on the list are contributors to the
election campaign of our mayor. If you
follow the money as to where our money is
being spent, it is going into the pockets of
people who are connected to the city. While
that is not an absolute trend, I still find it
alarming and I think it needs to be called on
as a point of reference when I see taxpayer
money being spent on a development project.
The idea that this has to be oriented so that
ballpark access is to and from the downtown
is strictly a conception. It is not absolute.
The fact that it has to go through the former
Sears building, the Gates Chevy building, is a
plan. It is not absolute in any way. There's
no reason we can't orient it off of Monroe
St., which is a logical connector from
Mishawaka. Western Ave. doesn't connect
that well. Neither do the northern accesses
that we're considering.
10
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
A. Public Hearing
(2) continued...
These extra properties that have been thrown
into the plan on Jefferson St., to me are,
again, just ways of getting out of taxes.
You'll notice, as Bill pointed out, that we're
getting a nice donation, but it's in arrears a
few thousand dollars in property taxes. What
we're getting on the one hand we're losing
on the other. I would like to see our money
better spent. You notice that this is going to
be $1. SM plus another $1M just for that one
corner site. We're not even talking about the
other money that's going to have to come
online to put the project in place. Who is
benefiting? We had a foggy proposal from
HOK which has been taken off the board.
That showed me nothing but parking lots and
very little as far as retail and other
infrastructure was concerned to address the
idea of who was going to benefit from this.
We've had the ballpark for many years and
there hasn't been any private sector interest.
I, myself, as a business owner in downtown
South Bend have shown up when the Cove
has had "meet your local business" days. We
twice set up booths at Coveleski Stadium.
Our findings on that, having given out gift
certificates, was zero. In two years of
passing out certificates, we didn't have one
single referral. Not one gift certificate was
redeemed from those types of ventures. To
me, the people who go to a ballpark are very
specific. The types of retail and businesses
that will benefit from that sort of investment
are very limited. I don't know that a 2,000
attendance figure is all that great. We get
more than that just having ArtBeat or some
11
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
A. Public Hearing
(2) continued...
other event. To me, we should take this
money and earmark it for other projects.
We've got some wonderful things going on
with the Eddy Street Commons project, the
Studebaker Corridor and the Nanotechnology
Park that we're talking about. Where are we
going to get people to work those jobs? To
me, putting the money that would be
earmarked to this project to better use is a
more advantageous use of taxpayer money.
Mr. Downes: I disagree with Ken's position,
from the standpoint that I think the ballpark
is an asset, and it's our obligation to continue
to improve that asset as the years go on. My
concern is that we don't have a set plan in
place. But my understanding is that HOK is
going to come back with a number of
different concepts for us to give them some
guidance as to the direction we're going to
go in. Regardless of what concept they
come back with, it seems clear to me that if
we're going to improve this asset and
connect it to the downtown to improve the
overall quality of life in downtown South
Bend, it's necessary to gain control of this
site and move forward with adding these
properties to the acquisition list.
Mr. Downes made a motion to approve
Amended Resolution No. 2441 amending the
South Bend Central Development Area
Development Plan. (adding Wayne St,
William St., and Western Ave. properties to
Acquisition List) Mr. Blake seconded the
motion. The motion carried on a vote of
COMMISSION APPROVED AMENDED RESOLUTION
NO.2441 AMENDING THE SOUTH BEND
CENTRAL DEVELOPMENT AREA DEVELOPMENT
PLAN. (ADDING WAYNE ST, WILLIAM ST., AND
WESTERN AVE. PROPERTIES TO ACQUISITION
LIST)
12
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
A. Public Hearing
(2) continued...
three to one with Mr. Peczkowski opposed.
B. Tax Abatements
(1) Commission approval requested for
Resolution No. 2445 approving an
application for real property tax deduction
for property located at 4315 S. Lafayette
Boulevard in the South Side Development
Area. (Heraeus Kulzer, Inc.)
Mr. Schalliol noted that Hereaus Kulzer, Inc.
is proposing to renovate a 25,000 square foot
existing building in order to combine their
managerial/administrative staff with their
manufacturing facility that is already on the
site. The building is the eastern most of three
connected buildings and fronts on Lafayette.
This move will improve the efficiency of
both operations. The company currently
manufactures and distributes dental
consumable products on the site. The
estimated cost of the project is $1,800,000.
The manufacturing facility has been at this
location since 1989 and under current
ownership since 1995. The previous owner
was Bayer.
The company has just begun collecting
information on potential suppliers and
contractors for the project. For this reason
they were unable to answer the questions
related to suppliers of construction materials
and construction contractors. They intend to
submit this information prior to the Common
Council's consideration of a confirming
13
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
B. Tax Abatements
(1) continued...
resolution. At that time final points will be
awarded and the length of the abatement term
can be set. Based on current information,
they score sufficient points for afour-year
abatement. If they score all of the points for
construction they would have enough for
seven years. For purposes of the
Redevelopment Commission, we are
estimating the term at eight years. Actual
points may adjust the term downward.
Assuming an eight-year abatement, the total
taxes to be abated during that term are
estimated at $277,908. Total taxes to be paid
during that same period are estimated at
$213,964. If the abatement is only for four
years, the taxes to be abated are estimated at
$153,710. Taxes to be paid during a four
year abatement are estimated at $92,226.
Mr. Schalliol noted that it is estimated that
the project will create thirty-five new,
permanent, fulltime jobs representing an
annual payroll of $2,900,000. The project
will also retain sixty-one permanent fulltime
jobs with an annual payroll of $3,200,000.
Hereaus Kulzer has not had any previous
abatements. The property is properly zoned
for the proposed use. The property is located
in the South Side Development Area, a tax
increment allocation area; therefore the
petition for real property tax deduction must
first be approved by the Redevelopment
Commission. The project qualifies for up to
eight years of abatement under the tax
abatement ordinance.
14
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
B. Tax Abatements
(1) continued...
Mr. Bolka noted that Hereaus Kulzer has had
a nice operation on the south side with sixty-
one jobs originally coming from Miles
Laboratories-Bayer. They are looking at
making this investment for efficiency
purposes, but want to consider incentives and
additional justification. He asked for
favorable consideration.
Mr. Peczkowski asked if Hereaus Kulzer has
any local competitors. Mr. Bolka responded
that they do not have any competitors in
Indiana, but they have a large customer,
Patterson Dental on the north side. Most of
their competitors are on the east and west
coasts.
Mr. Peczkowski: So these improvements are
in your best interest as far as distribution? Or
as your competitive stance to those people
that are not in ... Mr. Bolka responded that it
is in the company's best interest to have its
operations at a single site. It makes for a
more efficient control of the processes and
lower overhead.
Mr. Peczkowski: And in an expansion you
would anticipate that you would be hiring on
new people. Do you pay them health
benefits? Mr. Bolka responded that they do.
Mr. Peczkowski: And pension benefits? Mr.
Bolka responded yes.
Mr. Peczkowski: When I'm looking at your
points as to qualifying for the public benefit
15
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
B. Tax Abatements
(1) continued...
points summary, the things that are marked
yes are those that every business does as part
of being a business. If in your neighborhood,
the person next to you was getting tax
abatement and you weren't, how would you
feel. Mr. Bolka responded that if they had
the choice of moving into the area and
bringing ...
Mr. Peczkowski: No, they're already there.
Mr. Bolka: Well, these aren't there,
necessarily. That's why we're looking at this
as part of the justification. In terms of the
fact that my neighborhood is interested in
building economic value in this area, it
makes me feel good for the longevity of us as
a society. That's how I would feel about it.
Mr. Peczkowski: Even though you are not
getting any abatement yourself?
Mr. Bolka: Everyone makes their own
choices, I suppose, where they invest.
Mr. King asked about the payroll and jobs.
He noticed that the sixty one jobs to be
retained are paying on average $52,500 per
year. The new jobs will be paying on
average $83,500 per year. He asked if there
is going to be a change in the mix of the
workforce as a result of this expansion? Mr.
Bolka responded that there will be. The new
jobs will be administrative directors and
managers for the lead functions like sales and
marketing as well as research and human
16
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
B. Tax Abatements
(1) continued...
resources. The existing jobs are blue collar.
Mr. Peczkowski asked if tax abatements
weren't available, would Heraeus Kulzer not
go through with this project? Mr. Bolka
responded that they would look at other
locations that do offer incentives. He said he
hated to sound cavalier, but that's the
potential. In that case, if the company
wanted its operations to be together, it would
move the sixty-one jobs to the other location.
Mr. Downes said that he wanted to thank
Hereaus Kulzer for being in South Bend and
for trying to stay in South Bend and for
expanding their business in South Bend and
adding really valuable jobs to this
community.
Mr.Blake and Mr. King also added their
thanks to Hereaus Kulzer for choosing to stay
in South Bend.
Mr. Downes made a motion to approve
Resolution No. 2445 approving an
application for real property tax deduction
for property located at 4315 S. Lafayette
Boulevard in the South Side Development
Area. (Heraeus Kulzer, Inc.) Mr. Blake
seconded the motion. The motion carried on
a vote of three to one with Mr. Peczkowski
opposed.
COMMISSION APPROVED RESOLUTION NO. 2445
APPROVING AN APPLICATION FOR REAL
PROPERTY TAX DEDUCTION FOR PROPERTY
LOCATED AT 4315 S. LAFAYETTE BOULEVARD
IN THE SOUTH SIDE DEVELOPMENT UREA.
(HERAEUS KULZER, INC.
17
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(1) Commission approval requested for
Resolution No. 2432 related to acquisition
of property in the South Bend Central
Development Area. (401 West Western,
Chevy World Rental Inc.)
Mr. Schalliol explained that Resolution
No. 2432. is related to eleven properties at or
near 401 W. Western. The eleven properties
include the current Gates Chevy World
building and the adjacent parking lots. Ten
of the properties were added to the
development area by Resolution No. 2385.
The final one was added with Resolution
No. 2441 today. The purpose of Resolution
No. 2432 is to set the acquisition price of the
properties. The appraised value, as
established by the average of two qualified
appraisers, is $940,862.25. This value
includes the three story, 140,320 sft
commercial structure and a total of 3.318
acres of property.
Mr. Downes made a motion to approve
Resolution No. 2432 related to acquisition of
property in the South Bend Central
Development Area. Mr. Blake seconded the
motion. The motion carried on a vote of
three to one with Mr. Peczkowski opposed.
(2) Commission approval requested for
Resolution No. 2433 approving and
accepting a counter offer for the
acquisition of property in the South Bend
Central Development Area (401 West
Western, Chevy World Inc.)
Mr. Schalliol noted that Resolution No. 2434
approves a counter offer for the same
18
COMMISSION APPROVED RESOLUTION NO. 2432
RELATED TO ACQUISITION OF PROPERTY IN THE
SOUTH BEND CENTRAL DEVELOPMENT AREA
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(2) continued...
property in the amount of $1,500,000. Staff
believes the counter offer is fair considering
its location near the Coveleski Stadium and
opportunities that would exist to improve the
stadium with this land. When Coveleski was
first designed, the dealership was considered
an important part of downtown and
acquisition of it for connectivity between the
Cove and downtown was, therefore, not
considered. Now that Gates Toyota has
moved to the south side and Gates Chevrolet
will move into the Gates Toyota facilities,
this is prime land for improvements to the
ballpark. The original offer of $940,862
amounts to $6.51 per square foot for the
3.318 acres. The counter offer of $1,500,000
amounts to $10.3 8 per square foot for the
3.318 acres. A value of $10/sft is a
reasonable value for land and compares to
the $10.50/sft value paid for the adjacent
synagogue property. A final consideration is
the detrimental effect the large, vacant
dinosaur building would have on the
downtown. There has been a positive
momentum shift in the downtown in recent
years. A building and site of this magnitude
becoming vacant could be a major blighting
influence and the vacant site could drive a
further wedge between the ballpark and the
downtown. There are a lot of improvements
planned for this south side of town and
control of this building/site is critical.
Mr. Schalliol noted that the Contract for Sale
is the standard form of agreement used by the
Commission. A couple of points worth
19
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
C. South Bend Central Development Area
(2) continued...
mentioning are that the Commission will
escrow a percentage of the sale price to close
the terms of the agreement. The Commission
will take possession of the property
September 1, 2008; if, however, Gates has
not vacated the property by then, Gates will
become a tenant in the building until they
vacate. When they leave, they are to turn the
building over free of all automotive related
products.
Mr. Downes made a motion to approve
Resolution No. 2433 approving and
accepting a counter offer for the acquisition
of property in the South Bend Central
Development Area. Mr. Blake seconded the
motion. The motion carried on a vote of
three to one with Mr. Peczkowski opposed.
D. Airport Economic Development Area
(1) Commission approval requested for
proposal for professional services in the
Airport Economic Development Area.
(related to acquisition of 2020 S. Main St)
Mr. Schalliol noted that 2020 S. Main is the
former EMI property. As part of the city's
due diligence for considering acquisition and
redevelopment of this site, Wightman Petrie
has submitted a proposal in the amount of
$19,520 to provide a variety of services at
this property, including boundary surveys,
asbestos inspection, testing and report,
material characterization and disposal,
preparation of demolition specifications, and
COMMISSION APPROVED RESOLUTION NO. 2433
APPROVING AND ACCEPTING A COUNTER OFFER
FOR THE ACQUISITION OF PROPERTY IN THE
SOUTH BEND CENTRAL DEVELOPMENT AREA
(401 WEST WESTERN, CHEVY WORLD INC.
20
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
D. Airport Economic Development Area
(1) continued...
permitting services. Staff recommends
approval of the proposal for anot-to-exceed
amount of $20,000.
Mr. King asked if staff was expecting
difficulties with this property. Mr. Schalliol
said that there are indications there may be
difficulties with the title. We need to
understand what the other difficulties might
be before deciding to proceed toward
acquisition.
Mr. Peczkowski asked if these services were
bid. Mr. Schalliol responded that they were
not. Professional services do not have to be
bid. Wightman Petrie offers all of the
services, survey, environmental, engineering,
demolition, so staff felt they were the best
choice.
Mr. Peczkowski noted we gave Wightman
Petrie a fairly good deal on the property they
recently relocated to on S. Main St. They
were also a major contributor to the Mayor's
re-election campaign. Mr. Schalliol
responded that they did buy land from the
Commission to locate on S. Main St. and
have made substantial investment in that site.
Mr. Schalliol had no knowledge of any
contributions Wightman Petrie may have
made to the election campaign.
Mr. Downes made a motion to approve the
request for proposal and accepted the
proposal from Wightman Petrie for the scope
of services proposed and a fee not-to-exceed
COMMISSION APPROVED THE REQUEST FOR
PROPOSAL AND ACCEPTED THE PROPOSAL FROM
WIGHTMAN PETRIE FOR THE SCOPE OF SERVICES
PROPOSED AND A FEE NOT TO EXCEED $20,000
21
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
D. Airport Economic Development Area
(1) continued...
$20,000. Mr. Blake seconded the motion.
The motion carried on a vote of three to one
with Mr. Peczkowski opposed.
(2) Commission approval requested for
proposal for professional services in the
Airport Economic Development Area.
(Consulting services, LaSalle Square Area
Redevelopment Plan)
Mr. Vitton noted staff developed and
distributed a Request for Proposals (RFP) for
consulting services for the LaSalle Square
area redevelopment plan. The RFP was
posted on the city's Web site and a letter
offering the RFP was sent to twenty-five
firms within a day's drive of South Bend.
Responses to the RFP were due March 10.
Twenty-two proposals were received.
A Steering Committee and staff reviewed the
proposals over three meetings and selected
ZPD+A and the Center for Neighborhood
Technologies for planning services. The
proposed fee is $50,000 plus reimbursable
expenses. A cap on reimbursables has not
been negotiated, so the Contract is not ready
to be signed. The Commission has seen the
draft contract/form of contract. Staff
recommends accepting the proposal of
ZPD+A and the Center for Neighborhood
Technologies and authorizing execution of
the contract by legal counsel or the
Redevelopment Director when it is final.
22
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
D. Airport Economic Development Area
(2) continued...
Ms. Wolfson, a member of the Steering
Committee, spoke in favor of the proposal.
She noted that many members of the Steering
Committee had backgrounds that aided in the
considerations. Staff was also very helpful.
Ms. Wolfson also noted that the Steering
Committee made an initial decision to limit
its consideration to the proposals that fell
within budget. At the second meeting,
members narrowed the selection to the best
three and sent additional questions to those.
Staff contacted the references for each of the
three. This firm stood out, including on their
proposal to help the neighborhood identify
steps to develop the neighborhood into what
they would like it to be.
Council Member Davis, also on the Steering
Committee, stated that the committee felt
constrained by the time frame it was working
under, but thought they did as well as they
could under the circumstances. He thought
the process worked well. The 2"d District has
certainly been underserved and needs this
attention.
Commissioner Blake was also on the
Steering Committee. He believes the city
needs to put some serious focus on poverty.
If we put infrastructure and retail in, there
will be an incidental impact on poverty, but
without a 15-25 yr strategic plan to address
elimination of poverty the impact will be
small. Leadership needs to take seriously the
challenge of wealth creation. ZPD+A at least
mentioned addressing wealth creation in its
23
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
D. Airport Economic Development Area
(2) continued...
proposal.
Mr. Peczkowski asked if Mr. Blake thought
ZPD+A could address the issues of poverty,
though its mention of it was general. Will it
be incumbent on the city to make sure they
do? Mr. Blake responded that we will have
to make that an issue. He believes adding
that aspect may cost more.
Mr. Downes asked if Mr. Blake was in favor
of the ZPD+A proposal, but with the caveat
that we may need to request additional
services or another consultant to address
wealth creation in the LaSalle area. Mr.
Blake agreed.
Sister Laureen Painter, St. Joseph Regional
Medical Center (SJRMC), said that in fall
2007 the medical center finished its needs
assessment of the community that they do
every four years. The number one need from
every group they met with was health care on
the west side. Therefore, SJRMC has
committed to the west side, invited Memorial
Hospital to cooperate with them to establish a
family practice at LaSalle Square, and
Memorial has agreed.
Mr. Radecki said he has lived on Bonds Ave.
for forty five years. The west side has
wanted to see improvements at LaSalle
Square for a long time and is anticipating
changes from redevelopment's involvement.
They are looking forward to working with
the planning consultant to achieve results.
24
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
D. Airport Economic Development Area
(2) continued...
He is pleased with the new
SJRMC/Memorial family practice that is
planned.
Upon a motion by Mr. Downes, seconded by
Mr. Blake and unanimously carried, the
Commission accepted the proposal from
ZPD+A and the Center for Neighborhood
Technologies for the scope of services
proposed and a fee of $50,000 plus up to
$5,000 in reimbursable expenses, authorizing
staff to execute the final contract after legal
review.
E. West Washington-Chapin Development Area
There was no business in the West Washington-
Chapin Development Area.
F. South Side Development Area
There was no business in the South Side
Development Area.
G. Northeast Neighborhood Development Area
(1) Commission approval requested for Bid
Specifications and Design Considerations
for property in the Northeast
Neighborhood Development Area. (Eddy
Street Commons garage)
Ms. Laurent noted that in association with
and in support of the Eddy Street Commons
development in the Northeast Neighborhood,
the Commission seeks bidders proposing to
COMMISSION ACCEPTED THE PROPOSAL FROM
ZPD+A AND THE CENTER FOR NEIGHBORHOOD
TECHNOLOGIES FOR THE SCOPE OF SERVICES
PROPOSED AND A FEE OF $50,000 PLUS UP TO
$5,000 IN REIMBURSABLE EXPENSES,
AUTHORIZING STAFF TO EXECUTE THE FINAL
CONTRACT AFTER LEGAL REVIEW
25
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
G. Northeast Neighborhood Development Area
(1) continued...
lease the parking structure that is slated for
construction by the South Bend
Redevelopment Authority commencing in
June 2008. Following a construction
schedule of nine months, completion of the
garage is expected in March 2009. The
Commission has arranged to lease from the
Authority this property as well as
surrounding properties for the public
purposes of infrastructure creation and
upgrading and site preparation for
development. It is not the goal of the
Commission to control the garage or own it
indefinitely; rather it is to assist in financing
it through bond funding in order to facilitate
the overall Eddy Street Commons
Development. The disposition by lease
needs to be bid out and the Commission must
approve Bid Specifications.
Mr. Peczkowski questioned the statement at
the end of the Bid Specifications in bold,
"The Redevelopment Commission expressly
reserves the right to reject any and all bids
and in the event that no bid is awarded, the
Redevelopment Commission can dispose of
the property at either public sale or private
negotiation in accordance with Indiana Code
§36-7-14-22". He asked what the code says
on that. He wondered if we were anticipating
there would be no bid awarded, or is this just
a formality. Ms. Laurent responded that it is
language quoted directly from the statute.
Mr. Peczkowski asked if we expect to use
that option. Ms. Laurent responded that it is
26
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
G. Northeast Neighborhood Development Area
(1) continued...
most likely that a negotiated price will be
brought forward.
Upon a motion by Mr. Downes, seconded by
Mr. Peczkowski and unanimously carried,
the Commission approved the Bid
Specifications and Design Considerations for
property in the Northeast Neighborhood
Development Area. (Eddy Street Commons
garage)
(2) Commission authorization requested to
publish Notice of Intended Disposition of
Property by Lease with publication dates
of April 4, 2008 and April 11, 2008 and
Receipt of Bids at 10:00 a.m., May 2, 2008.
(Eddy Street Commons Garage)
Upon a motion by Mr. Downes, seconded by
Mr. Blake and unanimously carried, the
Commission authorized publication of the
Notice of Intended Disposition of Property
by Lease with publication dates of Apri14,
2008 and April 11, 2008 and Receipt of Bids
at 10:00 a.m., May 2, 2008. (Eddy Street
Commons Garage)
(3) Filing of Resolution No. 2446 amending
the Northeast Neighborhood Development
Area Development Plan and setting a
public hearing on Resolution No. 2446 for
10:00 a.m., April 18, 2008.
Mr. Schalliol noted that Resolution No. 2446
will add twenty-six properties to the
Acquisition List for the Northeast
COMMISSION APPROVED THE BID
SPECIFICATIONS AND DESIGN CONSIDERATIONS
FOR PROPERTY IN THE NORTHEAST
NEIGHBORHOOD DEVELOPMENT AREA. (EDDY
STREET COMMONS GARAGE
COMMISSION AUTHORIZED PUBLICATION OF THE
NOTICE OF INTENDED DISPOSITION OF
PROPERTY BY LEASE WITH PUBLICATION DATES
of APRIL 4, 2008 AND APRIL 11, 2008 AND
RECEIPT OF BIDS AT 10:00 A.M., MAY 2, 2008.
(EDDY STREET COMMONS GARAGE
27
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
G. Northeast Neighborhood Development Area
(3) continued...
Neighborhood Development Area. The
Public Hearing on the resolution will take
place April 18, 2008 at the Commission's
regular meeting.
Mr. Peczkowski asked how close the
Commission is to having the entire puzzle
put together. Mr. Schalliol responded that
the reason we're doing this now is that we've
got lots of offers pending south of St.
Vincent St. which, because the properties
aren't on the acquisition list, we can't
complete the deal.
Mr. Peczkowski asked how much more
acquisition needs to be done. Mr. King
responded that some of the properties were
acquired by South Bend Heritage Foundation
on our behalf, some were acquired by Notre
Dame and swapped for property we owned.
These being added to the acquisition list in
this resolution should be about the end of our
acquisition needs for this project. Mr.
Schalliol promised a status report on all of
the acquisition at the April 18 meeting.
Upon a motion by Mr. Downes, seconded by
Mr. Blake and unanimously carried, the
Commission accepted for filing Resolution
No. 2446 amending the Northeast
Neighborhood Development Area
Development Plan and set a public hearing
on Resolution No. 2446 for 10:00 a.m.,
April 18, 2008.
COMMISSION ACCEPTED FOR FILING
RESOLUTION NO. 2446 AMENDING THE
NORTHEAST NEIGHBORHOOD DEVELOPMENT
AREA DEVELOPMENT PLAN AND SET A PUBLIC
HEARING ON RESOLUTION NO. 2446 FOR
10:00 A.M., APRIL 18, 2008.
28
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
6. NEW BUSINESS (CONT.)
H. Douglas Road Economic Development Area
There was no business in the Douglas Road
Economic Development Area.
L Ratification of Service Contracts
There were no Service Contracts to be ratified.
7. PROGRESS REPORTS
Pamela Meyer noted that after the Urban Enterprise PROGRESS REroxTs
Association submitted its report to the Commission on
the Facade Grant Programs it runs for three commercial
corridors, the Commission was interested in more
information on the effects of the program. She
introduced Chris Dressel and Michael Divita to give
reports on the impact of the Facade Grant Programs on
Main/Michigan, Mishawaka, Miami and Western.
Mr. Divita reported on the facade program's
effectiveness along the Miami corridor. Since 2002, 23
matching grant projects have been completed on Miami
St. That amounts to a pretty good concentration, since
the Miami corridor is fairly small. Approximately every
second or third business has taken advantage of the
program. The convenience store owner claims he has
seen an increase in business since improving the facade.
Additionally, there have been several good comments
about the improved appearance along Miami St. Over
the last five years virtually all of the improvements have
used the Facade Grant Program. Many businesses have
said they would not have been able to do the
improvements without the program.
Mr. Dressel reported on the facade program's
effectiveness on Mishawaka Ave. The percentage of
participation has not been as high since Mishawaka
corridor is a longer corridor. The program has been in
existence on the corridor for six years and is well
29
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
7. PROGRESS REPORTS (CONT.)
known. He noted the facade grant program encourages
private investment, and the investment that is made
compliments the public improvements made along that
corridor. Additionally, the River Park Business
Association has become more savvy in trying to
encourage those improvements that accentuate the
public/private partnership nature of the corridor
program. During the seven years the program has been
in existence, over $500,000 of investment (public and
private) has been made.
Mr. Dressel noted that 2008 will be the first year the
facade program has operated on the Main/Nlichigan
corridor, so there is no experience there.
Mr. King thanked Mr. Dressel and Mr. Divita for their
reports. However, what he really hoped for was their
appraisal of the outcomes: does the program do more
than just put a new facade on a building? Does it
stimulate additional private investment in the area?
Does it make people feel better about their
neighborhood.? Ms. Meyer promised to pull
information related to that together and report back to
the Commission.
Mr. Peczkowski commented that he is not a fan of the
Facade Grant Program. As a small business owner
himself, he believes a business owner experiences the
pride of ownership when they put their own funds into
improvements. He agreed it is hard to get a bank to loan
a business money for facade improvements. Pride of
ownership comes when he is able to do it himself. He
believes asking the public to share in that expense
cheapens the whole experience.
30
South Bend Redevelopment Commission
Regular Meeting -March 28, 2008
8. NEXT COMMISSION MEETING
The next meeting of the Redevelopment Commission
will be a Special Meeting at 10:00 a.m., Apri14, 2008.
The next Regular Meeting of the Commission will be
Friday, April 18, 2008 at 10:00 a.m.
9. ADJOURNMENT
There being no further business to come before the
Redevelopment Commission, Mr. Downes made a
motion that the meeting be adjourned. Mr. Blake
seconded the motion and the meeting was adjourned at
11:28 a.m.
_ ~~~~
D~~~:~~..inl~; L~ire~.tor.
NEXT COMMISSION MEETINGS
ADJOURNMENT
~+Iar~~a I. James, Frei
31