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SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING July 12, 2012 9:30 a.m. 227 West Jefferson Boulevard Presiding: Marcia 1. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Dr. David Varner, Vice President Mr. Donald Alford, Secretary Mr. Greg Downes Mr. Henry Davis Mr. John Stancati Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Scott Ford, Executive Director Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. David Relos, Economic Development Specialist Mr. Jitin Kain, Economic Development Specialist Ms. Beth Leonard Inks, Director, Admin. Finance, Econ. Dev. Ms. Debrah Jennings, Property Manager, Econ. Dev. Others Present: Mr. Mike Mecham, City Engineer Mrs. Kyna Doaks Mr. Jason Durr, Christopher Burke Engineering Mr. Josh Corwin Ms. Amber Zebell, Prism Science Mr. John Martz Mr. Joseph Horvath Ms. Nancy Morgan Mr. Marco Marian, South Bend Heritage Foundation Ms. Karen Palmer Mr. Matt Heckman Mr. Frank Rozmarynowski Ms. Rose Rozmarynowski Ms. Gerry L. McKillip Mr. & Mrs. Matt Holderbaum Ms. Trina Detwiler Ms. Michelle Swain Ms. Lynn. Hancock Mr. Rock Perri Ms. Catherine D. Hostetler South Bend Redevelopment Commission Regular Meeting —July 12, 2012 Mr. Phil Sever, Sever Storey Mr. Tonny Storey, Sever Storey Ms. Glenda Rae Hernandez Ms. Mo Miller 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, June 28, 2012. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Thursday, June 28, 2012. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF THURSDAY, JUNE 28, 2012. Redevelopment Commission Claims submitted July 12, 2012 for approval. 324 AIRPORT AEDA Michiana Contracting, Inc. Dore & Associates Wightman Petrie R.E. Pitts & Associates, Inc. Jerome E Michaels, MAI DLZ David Waszak, MAI Jerome E Michaels, MAI L.L. Geans Construction Co. Abonmarche DLZ Abonmarche Ziolkowski Construction, Inc. Hull & Associates, Inc. 420 FUND TIF DISTRICT -SBCDA GENERAL Larson - Danielson Const. Co., Inc. Diamond Environmental Services, Installation of Fiber Optic Conduit for 6,098.80 New Animal Shelter 70,200.00 Studebaker Area A Demolition Ph IV 15,113.75 Environmental Site Assessment 3,915.00 726 -730 Sample St. /24505 Cleveland 2,000.00 728 -730 E. Sample St. 6,335.00 Olive Rd /Pine Rd 2,400.00 Appraisal Services 1505 Kendall 3,500.00 Appraisal Services 1505 Kendall 23,562.40 Voorde Park Improvements 4,200.00 Mayflower Bridges over ITR 480.00 Olive Rd /Pine Rd 1,047.50 Nimtz Parkway Multi -use Path 111,240.25 South Bend Animal Control 2,502.92 Olive Plow Works 375,703.10 Coveleski Stadium 5,645.00 Scrape & Removal of Lead base Paint 2 South Bend Redevelopment Commission Regular Meeting —July 12, 2012 Inc. in Several Area's. Relocate OH & UG Facilities' Accommodate New Parking Lot for Indiana Michigan Power Co -Dist 23,346.22 the VA Michiana Lock & Key Demolition & Indiana Earth, Inc. 37,699.00 Parking Lot Construction Buxton 1,750.00 Retail Matching Access Schindler 164.37 LaSalle Building Rose Pest Solutions 103.00 Pest Control DTSB 18,125.00 Beautification Program 422 TIF DISTRICT WEST WASHINGTON Gibson - Lewis, LLC 244,379.71 Hansel Center Renovations 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT Reith -Riley Construction Co., Inc. Memorial Hospital Streetscape 311,213.65 Improvement Bid Package #3A $1,270,724.67 Upon a motion by Mr. Downes, seconded by Mr. Alford COMMISSION APPROVED THE CLAIMS and unanimously carried, the Commission approved the SUBMITTED JULY 12, 2012. AND ORDERED THE Claims submitted July 12, 2012, and ordered checks to CHECKS TO BE RELEASED be released. 4. COMMUNICATIONS Mr. Varner asked that the following communication he received retarding the Fellow Street project be entered into the record: July 10, 2012 Dear Councilman Varner: I retired from Amoco Oil Company in Chicago in 1976 as a Senior Motor Analyst. My assignment was to purchase, trade and sell all motor vehicles, chassis, trailers and Drays of all types for the Central Region, which included all of Illinois; parts of 3 South Bend Redevelopment Commission Regular Meeting —July 12, 2012 Wisconsin, Indiana and Missouri. My staff and 1 were responsible for purchasing all necessary vehicle licenses and issuing them to all terminals in the Region and for preparing and issuing trip tickets and routing permits. It is was in the performance of theyse duties that I became familiar with resolving traffic routing issues similar to the one involving the Fellows Street Project. 1 am not an engineer. I do not claim to be an expert, but 1 did acquire practical knowledge in my work involving the movement of all types of vehicles — which gives me pause because of undesirable, irreversible issues if subject plan becomes reality. Enclosed is an Option To Subject Plan. There are probably others. Ofcourse, 1 am not privy to any "inside "figures or discussions so this option lacks that insight; but it does not lack- practical experience. In any event, affected citizens in this matter are confident that entrusted public officials will make all decisions in this matter "of the people, by the people and for the people. ' As we know, cities are comprised of PEOPLE; not asphalt, cement, bricks, mortar, streets or roads. This Option does not address the sewer /storm water issue; which can be addressed economically, effectively and expeditiously as a separate question. Sincerely, Joseph M. Horvath 4302 Fellows Street South Bend, IN 46614 The Fellows Street Corridor Improvements Overall Proieet is flawed in a number of respects; among which are: South Bend Redevelopment Commission Regular Meeting —July 12, 2012 There are a number ofsafety issues caused by a projected 5.5 vehicles per minute of all types and sizes coming off wider roads rumbling .7 of a mile on narrower neighborhood city streets as compared to. 3 of a mile on 4 lanes on city commercial roads in the OPTION, outlined below. Congested traffic issues will result in many remaining homes in surrounding neighborhood areas to become worthless or unoccupied, at best. The proposed bicvcle lane promises to be a particularly dangerous consideration. A significant percentage of this traffic will be coming of higher speed, wider roads; which do not have hie vcle lanes. Drivers may not be able to immediately adjust to the narrower ChippewalFellows Streets, and tower speeds. �►tsl/IyYI /7w99 To minimize redundancy: "Main" is south Main Street. "Ireland" is Ireland Road. ' Michigan" is South Michigan. "Fellows" is Fellows Street. " C:hippewa" is Chippewa Avenue. South -bound Freeway traffic on Main will continue south on Main through the existing traffic light; south beyond Chippewa to Ireland. There it will turn left, to the east, onto Ireland. It will then continue east on Ireland through the IrelandlMichigan intersection to the IrelandlFellows intersection; where it will turn right onto Fellows and proceed south to the Freeway. A right turn priority light will have been installed at the IrelandlFellows intersection. Note: An appropriately sized section at the east end of the existing concrete divider in the intersection of Main and Ireland will have been removed from the surface of Ireland to provide access for south bound left turns onto Ireland from Mainz Note: South Bend Redevelopment Commission Regular Meeting —July 12, 2012 *A new traffic light will have been installed at the intersection of Main and Ireland. This light will control all traffic at that point. It will also provide for priority left turns onto Ireland from Main. *All lights at the intersections of Main /Ireland; Ireland/Michigan and Ireland /Fellows are appropriately synchronized for priority to north and south bound traffic to and from the Freeway. *Optional: The current left turn light from Main, east onto Chippewa; to Michigan may remain. North -bound trade from the Freeway (south of Ireland) will proceed north on Fellows to the Ireland /Fellows intersection. There, it will turn left (west) at a priority left turn signal onto Ireland. It will proceed west on Ireland for .3 mile to the Ireland /Michigan intersection where it will turn right (north). From there it will proceed north on Michigan and beyond. Note: *A right turn light at the Ireland /Michigan intersection will provide priority to north bound Freeway traffic from Ireland onto Michigan and beyond. The current It, ft turn light remains and will be appropriately synchronized. This Option's advantages: • Minimal road modification required at present • Accommodates Freeway traffic as soon as needed • Prompt current resolution of the Freeway issue • Fewer, if any, acquisition delays • Minimizes current traffic intrusion during construction • Minimal construction time • Minimal upfront cost • Easy access to Erskine Commons Shopping Area on west Ireland from southern communities • Maker use of existing 4 lane commercial City 6 South Bend Redevelopment Commission Regular Meeting —July 12, 2012 roads and facilities • Is not subject to longer term, unforeseen eventualities • Provides a convenient alternative route to South Bend's southern communities from the north,for those who prefer not to use the Freeway • Minimal acquisition, construction and operational impact upon citizens in area neighborhoods • Addresses current and_ uture needs proportionately • Expenditure and construction based upon,fact, not projections • Allows for future updates, if needed, based upon actual need. • Accentuates practicalities, rather than aesthetics. This Option does not impose: • Negative impact on City tax revenue • Added ongoing future City maintenance expense • Intrusion upon area residential neighborhoods • North bound traffic lightjams on Fellows, at Fellows /Ireland, from the Freeway, south of Ireland • South bound traffic light jams on Fellows /ireland, north of Ireland, extending beyond Walter Street • Flooding induced traffejams at Fellows /Chippewa caused by unattended, clogged sewer drains at that intersection • Future area deterioration, abandonment and loss of housing value, because of congested, unsafe traffic conditions on the Fellows /Chippewa, Corridor Plan modified, streets • Massive construction and subsequently ongoing intrusion upon area residential neighborhoods • Funds spent because "they are available. " Note: This option does not address the sewer /storm South Bend Redevelopment Commission Regular Meeting —July 12, 2012 water issue; however, it allows for its resolution at any time. 5. OLD BUSINESS A. South Side Development Area (1) Resolution No. 3051 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement with the Board of Public Works (Fellows Street Corridor Improvement Project — Supplement #4). Mr. Schalliol noted that the purpose of this Amendment to the Master Agency Agreement is to establish professional services for the acquisition of properties in the Fellows Street Corridor. Resolution No. 3051 contains proposals for two appraisers, relocation specialists and title work and was tabled at the last Redevelopment Commission meeting. The intent today is to make a presentation of the logic used to select the Fellows Street option for improvements to address the additional traffic expected due to the rerouting of U.S. 31 traffic to the corner of Fellows St. and Ireland. He introduced Mr. Durr with Christopher Burke Engineering who made the presentation. Mr. Durr noted that Christopher Burke Engineering was the firm chosen to design the Fellows Street Corridor. The goal of the presentation today is to determine the best solution for the community and to secure Commission's support for that option, or to produce other viable options. Mr. Durr presented the following outline: South Bend Redevelopment Commission Regular Meeting —July 12, 2012 project design guidelines, background, needs assessment, initial design assessment, corridor selection, roadway selection or section selection, alignment selection, intersection layout, collateral concerns, public involvement and the conclusion. The entire PowerPoint presentation is attached to these minutes. Mr. Varner asked Mr. Durr what he meant when he referenced, repeatedly, a benefit to collateral concerns. Mr. Durr responded that collateral concerns would be such things as pedestrian traffic, adding of sidewalks, multi- use paths, separation of sewers, sanitary storm sewers, addressing existing flooding problems that are occurring on Chippewa and Fellows Sts., several intersection issues where Teri and Chippewa intersect with Fellows, and at the Walter St. intersection. Mr. Varner asked Mr. Durr what he meant by the worse conditions, based on alternative one. Mr. Durr responded that from an engineering perspective, they are: more traffic, less front yard, the need for retaining walls, long -term maintenance, and drainage problems on the east side. Mr. Varner asked Mr. Durr if omitting the sidewalk would make alternative two an acceptable option. Mr. Durr noted to get the grade up on the east up to match, there would still be a grading issue. Mr. Varner clarified that no sidewalk is an option. Mr. Durr responded it is an option but then there is no pathway for anyone on the east side. Mr. Varner noted there is a sidewalk on the west side. Mr. Durr noted there is a gap on the west side, south of Walter Street. He also noted that the east side is intended to be a multi -use path that will connect into the M South Bend Redevelopment Commission Regular Meeting —July 12, 2012 city's larger network of paths. Mr. Davis asked Mr. Durr for clarification on the postcards that were sent to everyone within the Erskine neighborhood (211 total). Mr. Durr responded that a printing company was hired to print and send the postcards. There was a comment from the audience that no one on the west side of Chippewa received any notification. Mr. Durr noted that as far as notification clarification, the third party can provide information. He also noted that there was above average attendance at all the public meetings; above 60 in both cases. Mr. Davis noted an inconsistency about the number of affected folks who did not respond to the meeting date survey. Mr. Davis asked Mr. Durr how much Christopher Burke Engineering was receiving for its services. Mr. Durr did not know the contracted amount. Mr. Davis asked Mr. Schalliol the same question. Mr. Schalliol said he could get the information for Mr. Davis. Mr. Davis asked that the amount to be provided before the Redevelopment Commission meeting ended. Mr. Varner asked if there is $3.1 million to spend on the project, is there a way to engineer our way out of this, so the owners that want to stay can stay, with the understanding that their front yard may be a little shorter. Mr. Durr stated that with the grading on the east side there would have to 10 South Bend Redevelopment Commission Regular Meeting —July 12, 2012 be some concession made: their driveways are going to be substandard with the possibility of water continuously coming off the road into their houses. Mr. Varner suggested that it could be presented to those who do not want to move what that choice would mean. Christopher Burke Engineering asked for options that were doable and workable to provide the best solution for the entire community. Can it be done or is there the will to look at it as an alternative? Mr. Durr said he is willing to look at any option. Mr. Sehalliol agreed that Christopher Burke can design some options and the city will consider them. He added that the properties that are most opposed to acquisition are at the southern end of the project and present the most design challenges. Mr. Durr added, from an engineering standpoint and regarding the two alternatives, in an engineering opinion, the first four properties need to be acquired; the first four north of the Tyler - Glen property on the east side. To the north of that it becomes largely a driveway and drainage issue. Mr. Downes asked when a decision needs to be made in order to avoid the problems of the increased traffic volumes and to make sure the T1F funding is in fact available. Mr. Sehalliol responded that in order to have Fellows open by the time the state's road is opened acquisitions need to be done in early spring 2013. Mr. Downes again asked for a specific time by which a decision needs to be made, one way or the other. Mr. Inks responded that it is a complex question. It depends on how South Bend Redevelopment Commission Regular Meeting —July 12, 2012 quickly the acquisitions can proceed and whether there are challenges to the acquisition. Staff can't be sure what the absolute deadline is. Mr. Downes asked, then, if the downside to slowing the project is simply that the bridge would be complete and the additional traffic would cause congestion before our road is finished. Mr. Schalliol agreed. Mr. Davis noted his concern for losing tax dollars through taking of homes and nothing to replace those tax dollars. Mr. Davis also referred to one of the objections to one of the options was how close to Ireland the stoplight at Walter would be. He wondered whether a stoplight was needed at Walter. Mr. Davis asked who owns the Kmart property. Mr. Schalliol responded he did not know the name, but a development group out of Atlanta owns it. Mr. Davis asked if Mr. Schalliol had looked up how much the City of South Bend contracted with Christopher Burke for. Mr. Schalliol's response was 5362,000. Mr. Davis asked who owns Erskine Golf Course. Mr. Schalliol responded the City of South Bend. Mr. Davis asked where the traffic was coming from that was the cause of action. Mr. Schalliol stated from the south and north. Mr. Davis stated that the city's position is that this project was state mandated rather than a city decision. During the time the 12 South Bend Redevelopment Commission Regular Meeting —July 12, 2012 state was making its decisions, there must have been meetings with the city and decisions were made together. He feels it is now time to consider alternatives on our end. This option reflects the city's decision to effect tax paying residents rather than use nearby city park land. He believes the better decision would be to use park land that isn't paying taxes, rather than pull tax paying property off the tax rolls. Ms. Jones noted that there would not be an opportunity for the public to speak at this meeting. Except for public hearings, the Redevelopment Commission meetings do not take public comment. This presentation was for to gather information. An audience member asked if there would be a meeting where the public would be allowed to speak. Ms. Jones replied that the only time the Redevelopment Commission hears input from the public is when there is a public hearing. Mr. Downes stated to Mr. Inks that if there is another meeting for the residents prior to the time that the Redevelopment Commission needs to take action, he would like the Commissioners to be notified also. 6. NEW BUSINESS A. South Bend Central Development Area (1) Certificate Regarding Annual Financial Information Disclosure Mr. Inks noted that the Century Center Bonds of 2008 and the Eddy Street Common Bonds of 2008 require the South Bend Redevelopment Authority and South Bend 13 South Bend Redevelopment Commission Regular Meeting —July 12, 2012 Redevelopment Commission to certify the financial statements under the Continuing Disclosure Undertaking Agreement. Mr. Varner requested copies of 2008 bonds. Mr. Inks said he would provide copies. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Certificate Regarding Annual Financial Information Disclosure. (2) Resolution No. 3057 appointing one Redevelopment Commissioner to the Riverfront License Application Review Committee. Mr. Inks noted Resolution No. 3057 appoints Mr. Greg Downes as the Redevelopment Commission's representative to the Riverfront License Application Review Committee. Ms. Jones said she polled the Commissioners and she copied Mr. Varner and Mr. Davis. The Council will have its own appointee. Mr. Downes said he was willing to be the representative. Upon a motion by Mr. Alford, seconded by Mr. Davis and unanimously carried, the Commission approved Resolution No. 3057 appointing one Redevelopment Commissioner, Mr. Greg Downes, to the Riverfront License Application Review Committee. (3) Addendum to Commercial Purchase Agreement (LaSalle Hotel). Mr. Relos noted that on June 14, 2011, the 14 COMMISSION APPROVED THE CERTIFICATE REGARDING ANNUAL FINANCIAL INFORMATION DISCLOSURE. COMMISSION APPROVED RESOLUTION No. 3057 APPOINTING ONE REDEVELOPMENT COMMISSIONER, MR. GREG DOWNES, TO THE RIVERFRONT LICENSE APPLICATION REVIEW COMMITTEE. South Bend Redevelopment Commission Regular Meeting —July 12, 2012 Commission approved a Commercial Purchase Agreement (Agreement) with Mavcon Properties, LLC, from Kalamazoo, Michigan. This Agreement gave Mavcon two 180 -day inspection periods to determine the feasibility of rehabilitating the LaSalle Hotel into approximately 60 market rate apartments. Mavcon, at its own expense, has studied the architectural, engineering, and environmental condition of the hotel, as well as a financing package that may include New Market and Historic Tax Credits. Mavcon has spent much time and effort getting construction estimates and pulling together a financing package. At the Commission's last meeting on June 28, an update was given that a 30 -day extension was needed for Mavcon to present its findings. This Agreement grants a 30 -day extension to July 31, 2012. During the remainder of this month, Mavcon's findings will be analyzed and a recommendation made. Staff requests approval of this Commercial Purchase Agreement Addendum. Mr. Varner asked Mr. Relos if he was encouraged or discouraged by the need for an extension. Mr. Relos responded that he has no opinion. He reported that Mavcon had assumed that city's tax abatements were full tax abatements for the full ten -year period. That is how Michigan's abatements are. That is how they ran their numbers. When they learned that is a phased -in tax abatement over nine or ten years, the needed to calculate the impact and feasibility of the project again. 15 South Bend Redevelopment Commission Regular Meeting —July 12, 2012 Mr. Davis asked if the city could make a special exception for this abatement. Mr. Inks responded that that would be a policy decision. Staff has requested a proforma to determine whether there is a gap that would require more than the standard tax abatement to make the project viable. Mr. Downes asked if it was realistic for Maveon to make its decision by the end of the month. Mr. Relos noted that there is the tax abatement issue, but, also, we've always known that any reuse of that building would require a parking structure of some kind. The city can participate in the project to some extent. Mr. Relos thinks Mavcon has the ability to make its decision by the end of July. Mr. Downes and Mr. Davis felt that it would be better to make the extension to the end of August, rather than come back at the end of July and ask for another. Mr. Davis asked who would pay for the parking structure. Mr. Relos responded that any city /Commission participation would be with TIF funds. Mr. Davis noted that he continues to hear complaints that either there isn't enough parking downtown, or that the parking garages are not full. He thinks this community needs an adjustment in its attitudes toward walking to events and paying for parking. Mr. Inks noted that one of the 2011 capital improvements to the garages was to install new gate equipment and to make them more customer friendly. This year the capital improvements will include a signage 16 South Bend Redevelopment Commission Regular Meeting —July 12, 2012 component to let people know there is free two -hour parking in the garages. So the city is trying to make people more aware of the parking garages as an option. Mr. Inks also noted the parking garages are at 91 % occupancy. When they appear to be empty, the spaces are still being paid for. Mr. Downes asked Ms. Leonard Inks to ask Mr. Aaron Perri if DTSB to make a report to the Commission on downtown parking at the September 27 meeting. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission amended the Addendum to change the extension from 30 to 60 days. COMMISSION AMENDED THE ADDENDUM AND TO CHANGE THE EXTENSION FROM 30 TO 60 DAYS. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED ADDENDUM TO Mr. Alford and unanimously carried, the COMMERCIAL PURCHASE AGREEMENT Commission approved amended Addendum (LASALLEHOTEL). to Commercial Purchase Agreement (LaSalle Hotel). (4) Resolution No. 3054 approving and authorizing the execution of an Addendum to the Master Agency Agreement with the Board of Public Works (Fat Daddy's Sidewalk Repair). Mr. Relos noted that under the sidewalk in front of the Fat Daddy's buildings in the 500 block of South Michigan Street there is an old vault. The vault is in a deteriorated condition, is a safety hazard, and is currently roped off, closing most of this busy sidewalk. The vault opens into the adjacent building's basement. To correct this problem, the vault needs to be walled off from the rest of the basement, then filled with flowable fill, and 17 South Bend Redevelopment Commission Regular Meeting —July 12, 2012 the sidewalk replaced. Staff requests approval of Resolution No. 3054 and the Master Agency Agreement Addendum with the Board of Public Works, for the Fat Daddy`s Sidewalk Repair project, in a not -to- exceed amount of $30,000. Mr. Downes asked if we were to have torn this building down, would the city have avoided this cost. Mr. Inks replied it would have been necessary anyway. Upon a motion by Mr. Davis, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 3054 approving and authorizing the execution of an Addendum to the Master Agency Agreement with the Board of Public Works (Fat Daddy's Sidewalk Repair). B. Airport Economic Development Area (1) Limited License Agreement with 3575 Moreau Court LLC (LPGA — Parking for First Professional Golf Tournament in South Bend) Ms. Leonard Inks noted that the agreement will allow visitors to the LPGA event at Blackthorn to use the parking lot at 3575 Moreau on August I 1 and 12, 2012. Ms. Inks noted that the contract was under revision until this morning. Legal has not had opportunity to review the latest changes. Staff recommends contingent approval subject to legal review of the latest document. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the 18 COMMISSION APPROVED RESOLUTION NO. 3054 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMEN"I WITH THE BOARD OF PUBLIC' WORKS (FAT DADDY'S SIDEWALK REPAIR). COMMISSION APPROVED LIMITED LICENSE AGREEMENT WITH 3575 MOREAU (.HURT LLC ( LPGA - PARKING FOR FIRST PROFESSIONAL South Bend Redevelopment Commission Regular Meeting —July 12, 2012 Commission approved Limited License GOLF TOURNAMENT IN SOUTH BEND) Agreement with 3575 Moreau Court LLC CONTINGENT UPON LEGAL REVIEW (LPGA — Parking for First Professional Golf Tournament in South Bend) contingent upon legal review. C. West Washington - Chapin Development Area (1) Resolution No. 3055 authorizing the transfer of real property to he South Bend Board of Public Works (Hansel Center). Mr. Relos noted that on November 22, 2011, the Commission and South Bend Heritage Foundation, Inc. (SBHF) entered in to a Memorandum of Understanding (MOU), for the substantial renovation of Hansel Center, 1045 W. Washington St. The MOU called for the transfer of Hansel Center from SBHF to the Commission, and upon completion of the Commission's responsibilities, the transfer of the property to the Board of Public Works (Board). The Board will in turn transfer it back to SBHF, who will complete the project with private funding. On April 24, 2012, the Commission accepted the transfer of the Hansel Center. It is anticipated the Commission's responsibilities under the MOU will be reached by the end of this month. In preparation of the transfers required to complete the project, Resolution No. 3055 authorizes the transfer to the Board. Staff requests approval of Resolution No. 3055. Mr. Downes made a motion to approve COMMISSION APPROVED RESOLUTION NO. 3055 Resolution No. 3055. Mr. Alford seconded. AUTHORIZING THE TRANSFER OF REAL PROPERTY TO HE SOUTH BEND BOARD OF PUBLIC WORKS The motion passed on a vote of four to one (HANSEL CENTER). lL`i South Bend Redevelopment Commission Regular Meeting —July 12, 2012 with Mr. Davis opposed. (2) Revised Development Agreement with South Bend Heritage Foundation for rehabilitation and renovation of the Rushton Building (Northwest corner William and Washington Streets). Mr. Relos noted that on October 25, 2011, the Commission entered into an MOU with South Bend Heritage Foundation, for the rehabilitation of the historic Rushton Building, at the northwest corner of W. Washington and William St. Because the Rushton was built with common kitchen and dining areas, and has stood vacant since 2002, extensive remodeling of the building is required. The building will be converted into a 23 unit, low to moderate income senior housing complex. Total development costs are estimated to be $3.4 million. Funding for the project will come from $2.8 million Low Income Housing Tax Credits and $277,700 Historic Tax Credits. To fully fund the project, $322,300 in West Washington Chapin Development Area TIF was approved. On March 27, 2012, the Commission approved a Development Agreement, which delineated each party's responsibilities. Commission improvements will allow off - street parking for residents and visitors, necessary site utility upgrades, sidewalks and curbs, landscaping and lighting, exterior tuck pointing and cleaning, and new thermo windows. On May 31, 2012, the Commission approved Resolution No. 3035 and an Addendum to the Master Agency Agreement, for the Board 20 South Bend Redevelopment Commission Regular Meeting —July 12, 2012 of Public Works to oversee the Commission's improvements. To take full advantage of the tax credits to make this project successful, the total cost of $3.4 million must be spent by South Bend Heritage Foundation. The attached Disbursement Agreement allows SBHF to incur all costs of the project, and thereby earn the full amount of tax credits. The spending of Commission funds will be governed by the Disbursement Agreement, which allows funds to be deposited in an escrow account, and disbursed only with Commission approval, ensuring the use is as previously agreed to in the Development Agreement. Mr. Inks noted that when the Commission funds projects with TIF, all of the construction work typically goes through the city's Board of Public Works and is overseen by the Board of Works. Disbursements are also approved by the Board of Works. That will be the case here. It will be bid through the city's Board of'Public Works using the city's bid process, and the draws will be approved by city engineers that the work has been completed properly. The only difference will be that the contract that is bid will be signed by South Bend Heritage or an entity related to Rushton Apartments. The city will not be liable on the contract but will be liable through the disbursement agreement to pay for that contract. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Revised Development Agreement with South Bend Heritage Foundation for rehabilitation and renovation of the Rushton Building (Northwest corner William and Washington 21 COMMISSION APPROVEDTHE REVISED DEVELOPMENT AGREEMENT WITH SOUTH BEND HER H AGE FOUNDATION FOR REHABILITATION AND RENOVATION OF THE RUSHTON BUILDING (NORTHWEST CORNER WILLIAM AND WASHINGTON STREETS). South Bend Redevelopment Commission Regular Meeting —July 12, 2012 Streets). (3) Disbursement Agreement with Historic Rushton LP and South Bend Heritage Foundation, Inc. for disbursement of West Washington- Chapin tax increment funds for rehabilitation and renovation of the Rushton Building. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Disbursement Agreement with Historic Rushton LP and South Bend Heritage Foundation, Inc. for disbursement of West Washington - Chapin tax increment funds for rehabilitation and renovation of the Rushton Building. D. South Side Development Area (1) Certificate regarding Annual Financial Information Disclosure (Erskine Village Project). Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Certificate regarding Annual Financial Information Disclosure (Erskine Village Project). E. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. F. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. G. Other 22 COMMISSION APPROVED THE DISBURSEMENT AGREEMENT WITH HISTORIC RUSHTON LP AND SOUTH BEND HERITAGE FOUNDATION, INC. FOR DISBURSEMENT OF WEST WASH INGTON-CHAPIN TAX INCREMENT FUNDS FOR REHABILITATION AND RENOVATION OF THE RUSHTON BUILDING. COMMISSION APPROVED CERTIFICATE REGARDING ANNUAL FINANCIAL INFORMATION DISCLOSURE (ERSKINE VILLAGE PROJECT). THERE WAS NO BUSINESS IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting —July 12, 2012 (1) Resolution No. 3056 determining that the tax increment which may be collected in the year 2013 is needed to satisfy obligations of the Commission and that no excess assessed value may be allocated to the respective taxing units and other related matters. Mr. Inks noted Resolution No. 3056 meets a requirement under state law, that by July 15 each year the Commission is required to notify the auditor and various other entities about whether the Commission needs all of the tax increment revenue for the following year or not. Staff recommends that all of the tax increment revenue be retained by the Commission for the year Pay 2013. The Commissioners were provided lists of projects that are under consideration for 2013. Some of the projects will not move ahead; other projects will be added to these lists as they arise. These are the projects that are currently under consideration for 2013, provided so there is some basis for saying the Commission needs the TIF funds for 2013. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 3056 determining that the tax increment which may be collected in the year 2013 is needed to satisfy obligations of the Commission and that no excess assessed value may be allocated to the respective taxing units and other related matters. (2) Certificate regarding Annual Financial Information Disclosure (Century Center Bond of 2008 Project and Eddy Street Commons Bond of 2008 Project). 23 COMMISSION APPROVED RESOLUTION No. 3056 DETERMINING THAT THE TAX INCREMENT WHICH MAY BE COLLECTED IN THE YEAR 2013 IS NEEDED TO SATISFY OBLIGATIONS OF THE COMMISSION AND THAT NO EXCESS ASSESSED VALUE MAY BE ALLOCATED TO THE RESPECTIVE TAXING UNITS AND OTHER RELATED MATTERS. South Bend Redevelopment Commission Regular Meeting —July 12, 2012 Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Certificate regarding Annual Financial Information Disclosure (Century Center Bond of 2008 Project and Eddy Street Commons Bond of 2008 Project). 7. PROGRESS REPORTS There were no Progress Reports. Mr. Davis asked for the strategies supporting the anticipated TIF projects for 2013, along with the projected costs. Mr. Inks said he would provide that to all Commissioners. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is scheduled for Thursday, July 26, 2012 at 9:30 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Davis made a motion that the meeting be adjourned. Mr. Varner seconded the motion and the meeting was adjourned at 11:05 a.m. Donald E. Inks, Director 24 COMMISSION APPROVED CERTIFICATE REGARDING ANNUAL FINANCIAL INFORMATION DISCLOSURE (CENTURY CENTER BOND OF 2008 PROJECT AND EDDY STREET COMMONS BOND OF 2008 PROJECT). NEXT COMMISSION MEETING ADJOURNMENT �o �ruran9 16 '�dt� eNy O V 0 U O a-J 4-j o U N N O w U O 0 3: 0. O E LIL IISMAN .1 Ln t (3) y (a W ?� u — .— v -0 j d0 Q p *-J C O L � Q L a� a1 O +1 "6 4.11 LA tn O a� i-J Q' 0 -C Q :3 Q Q L E �] T t� L $ E u O O Qi o O Qj CL O Q)> �a) 0 o Q) > � a) o LL r- Y � L +-+ Q L — d O in ru > . +j _d d CL Q. o L 0E'n Q� . _ d +� a) a +; O f0 U •� �+ O •E d d > ay a1 O . 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