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Home My WebLink About2 Minutes 11-8-12 meetingSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING November 8, 2012 Room 1308 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. Greg Downes Members Absent: Mr. Donald Alford Sr., Secretary Mr. Henry Davis Mr. John Stancati Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Y .Mr'. Don Inks, Director 1,. i , Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. David Relos, Economic Development Specialist Mr. Jitin Kain, Economic Development Specialist Mr. Bill Schalliol, Economic Development Specialist Ms. Tamara Nicholl -Smith Ms. Debrah Jennings, Property Manager Others Present: Mr. Scott Ford, Executive Director Ms. Beth Leonard Inks, Director Ms, Angela McCaslin Mr. Conrad Damian Mr. Bill Lamie, ADG Mr. Don Schefineyer Ms. Linda WolfsonCommunity Forum for Econ Dev Mr. Leslie Ivie, F Cubed Mr. Bob Williams, F Cubed Mr. Mike Cloonan, F Cubed Mr. Mark Scott, Harmon Glass Mr. Tim Scott, Harmon Glass Ms. Jayne Flanagan Mr. Greg Gluchowski Mr. Bob Sweeney Mr. David Hodges Mr. Charlie Florance, Indiana Whiskey Marybeth Roncz, Harmon Glass South Bend Redevelopment Commission Regular Meeting — November 8, 2012 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, October 25, 2012 Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Thursday, October 25, 2012 3. APPROVAL OF CLAIMS Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Claims submitted November 8, 2012. 324 AIRPORT AEDA BSA LifeStructures Inc. St. Vincent De Paul Society South Bend Parks & Recreation Sopko, Nussbaum, Inabnit & Kaczmarek Faegre Baker Daniels DLZ Meridian Title Corporation Jackson Service Ken Herceg & Associates, Weaver Boos Consultants DHA 12,267.00 Ignition Park Accelerator Building 138,125.00 Real Estate Option Agreement 3,429.00 Centralized Mowing City Properties 3,912.50 Legal Services 3,384.00 2,880.00 150.00 53,375.00 1,203.50 3,070.77 5:Ok0.00 420 FUND TIF DISTRICT -SBCDA GENERAL Sopko, Nussbaum, Inabnit & 625.00 Kaczmarek Faege Baker Daniels 2,772.00 Casteel Construction 32,787.00 South Bend Parks & Rec 5,234.00 R.E. Pits & Associates, Inc. 2,200.00 David Waszak Appraisals, 2,900.00 IsJI1°I;3 13,750.00 422 TIF DISTRICT WEST WASHINGTON South Bend Parks & Rec 105.00 Legal Services So. Bend Olive Corr- Brick2Adams Bosch Parcel Ignition Park So. Demolitions, Ph III Sheridan Ave, & Lincolnway West Design Ivy Tower Facility Preparation of a St. Subdivision Replat Legal Services Vacation, Rezoning, Variance & Legal Services Century Island Park Pavilion Centralizes Mowing City Properties Disposition appraisal Schillings Disposition appraisal Schillings Beautification Program Streetscape Enhancements & Business Recruitment Centralized Mowing City Properties 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT DLZ 575.00 Engineering DLZ 6,200.00 Engineering for Expansion of Olive Pine Rd 429 TIF FUND NORTHEAST DISTRICT Grauvogel & Associates , §55.00 Northeast Demolitions, AEP Lines South Bend Redevelopment Commission Regular Meeting — November 8, 2012 3. APPROVAL OF CLAIMS (CONT.) 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA #1 South Bend Parks & Recreation 135.00 Centralized Mowing City Properties DLZ 3,010.00 So. Bend Ireland RQ Acquisition Scooter Warehouse, Inc. 7,760.00 Main St. /Lafayette Blvd Connector Patricia Moore Properties, LLC 7,270.00 Main St. /Lafayette Blvd Connector Ric A. & Janet A. DeBuysser 4,261.50 Main St. /Lafayette Blvd Connector Diane Ladson 9,300.00 Main St. /Lafayette Blvd Connector 433 REDEVELOPMENT ADMINISTRATION GENERAL Faegre Baker Daniels 180.00 Legal Services 435 FUND DOUGLAS RD Abonmarche 1,200.00 SR 23 & Douglas - Added Right Turns Lane 327,926.27 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS A. Other (1) Memorandum of Understanding with the City of South Bend, Indiana and the University of Notre Dame Du Lac related to the use of Certified Tech Park funds. (Information included in 10/25/12 packet) Mr. Inks asked that Item 5.A.(1) be tabled to the November 29, 2012 meeting. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission tabled Item 5.A.(1) to the November 29, 2012 meeting. 6. NEW BUSINESS A. Public Hearings (1) Public Hearing on Resolution No. 3100 appropriating tax increment financing revenues from Allocation Area Fund for the payment of certain obligations and expenses related to the Northeast Neighborhood Development Area Allocation Area #2. Ms. Leonard -Inks noted that Resolution No. 3100 appropriates $588,000 for payment to the city's Major Moves fund. South Bend Redevelopment Commission Regular Meeting — November 8, 2012 6. NEW BUSINESS A. Public Hearings (1) continued... Mr. Inks noted that the Public Hearing file is complete, containing: (1) a copy of Resolution No. 3099 determining to make the appropriation and setting the public hearing on Resolution No. 3100; (2) a copy of the Notice of Hearing; (3) a copy of Resolution No. 3100; (4) affidavits from the South Bend Tribune and the Tri- County News that the Notice of Hearing was published in those newspapers on October 26, 2012. Ms. Jones opened the Public Hearing for whoever wished to be heard concerning Resolution No. 3100. There was no one who wished to be heard. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (2) Consideration of Resolution No. 3100. Mr. Vamer asked which improvements under Major Moves were being paid for with this payment. Ms. Leonard -Inks responded Eddy Street Commons infrastructure. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3100 appropriating tax increment financing revenues from Allocation Area Fund for the payment of certain obligations and expenses related to the Northeast Neighborhood Development Area Allocation Area #2. (3) Public Hearing on Resolution No. 3102 confirming a resolution adopting the Howard Park Neighborhood Master Plan and amending the Development Plan for the South Bend Central Development Area. Mr. Kain noted that the process for amending the South Bend Central Development Area Development Plan began August 16, 2012 with a declaratory resolution. This Master Plan was completed in 2008 with a lot of input from residents and businesses in the area. The plan was submitted to the Area Plan Commission and South Bend Common Council for approval, which was received by both bodies. The confirming resolution today completes the process of amending the development area development plan. Mr. Inks noted that the Public Hearing file is complete, containing: (1)a copy of Declaratory Resolution No. 3064 amending the Development Plan for the South Bend Central Development Area and adopting the Master Plan for the Howard Park Neighborhood; (2) a copy of the Area Plan Commission's Resolution No. 228 -12 approving the Howard park Neighborhood Master Plan, South Bend, IN; (3) a copy of the South Bend Common Council's Resolution No. 4202 -12 approving and adopting the Howard Park Neighborhood Master Plan; (4 ) a copy of the Notice of Hearing; (5) a copy of Resolution No. 3102; (6) an affidavit from the South Bend Tribune and the Tri- County News, that the Notice of Hearing was published in that newspaper on October 19, 2012; (7) a statement from Jitin Kain that on 0 South Bend Redevelopment Commission Regular Meeting — November 8, 2012 6. NEW BUSINESS A. Public Hearings (3) continued... October 18, 2012 neighborhood associations and interested parties were sent notice of the Public Hearing; (8)The mail was checked prior to this meeting. As of 9:30 a.m., November 8, 2012, there were 0 written remonstrances received related to Resolution No.3102. Ms. Jones opened the Public Hearing for whoever wished to be heard concerning Resolution No. 3102. Mr. Donald Schefineyer: I am president of the East Bank Village Partnership. The Master Plan which is before you for approval is one that has had a gestation since 1994, at which time our neighborhood commissioned an architect by the name of David Sassano to do a plan which we felt would be a good improvement for the area and to return the Howard Park neighborhood to its original fine condition. In accordance with, potentially, the type of housing that was developed in the Wayne Street/Sunnymede tract, which has been one of the most successful housing projects in the city's history. It was originally laid out with a lot of single family residential (as a matter of fact, mainly single family residential), and then over the years the community got involved and the neighborhood became more extensively involved when the Holladay Corporation committed a group from Chicago called JJR to come in and put together a series of charettes and neighborhood and community meetings to discuss the implications of the redevelopment of the Howard Park neighborhood, with a path along the river, potentially to include some changes to the viaduct system, the Cooper Street Bridge. Out of those meetings, which were held over a period of about a week, four plans emerged. This particular plan was the one that was chosen by acclamation and was then presented in due fashion at the Century Center at a community -wide meeting and had essentially no opposition. I thought that was quite extraordinary because there was opposition at almost every level to the various aspects of most of the plans; but on balance this one met the test of time and was essentially universally approved. So, I believe this is the last step in the approval process and I urge its adoption, There was no one else who wished to speak regarding Resolution No. 3102. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (4) Consideration of Resolution No. 3102. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3102 confirming a resolution adopting the Howard Park Neighborhood Master, Plan and'amending the Development Plan for the South Bend Central Development Area. South Bend Redevelopment Commission Regular Meeting — November 8, 2012 6. NEW BUSINESS B. Receipt of Bids (1) Receipt of Bids for 514 Rush Street, 518 Rush Street, 611 E. South Street, 613 E. South Street, 618 Lincolnway East, 622 Lincolnway East, 626 Lincoluway East, 636 Lincolnway East, 701 E. South Street and 700 Blk South Street Vac. Lot in the South Bend Central Development Area. Mr. Inks noted that no bids were received for any of these Monroe Park residential properties. We will continue to work to dispose of these properties, but by law may not bring back any agreement regarding the sale or lease of these properties for thirty days. (2) Receipt of Bids for 24505 Cleveland Road in the Airport Economic Development Area. Mr. Inks noted that no bids were received for this 10 -acre tract in the Blackthorn area. We will continue to work to dispose of this property, but by law may not bring back any agreement regarding the sale or lease of the property for thirty days. (3) Receipt of Bids for 2018 -2020 S. Main Street, former EMI site in the Airport Economic Development Area. Mr. Inks noted that no bids were received for the former EMI site. We will continue to work to dispose of this property, but by law may not bring back any agreement regarding the sale or lease of the property for thirty days. C. South Bend Central Development Area (1) Agreement for License with 112 West Jeff, LLC for renovation at the southwest corner of Michigan and Jefferson. (Citizens' Bank & Trust Plaza) Mr. Kain noted that 112 West Jeff, LLC was planning on investing roughly $6M into the renovation of the historic building, including work on the inside and outside of the building. They have asked for assistance with work to the plaza. It is envisioned to be a public space that can be utilized for special events organized by Downtown South Bend Inc. or other organizations. The vision is that is really helps anchor that part of town, provides another venue for public events in the downtown area. The amount for the plaza work is estimated at $256,708. We have added a small contingency to that in case bids come in higher, so we request approval $295,214 from the South Bend Central Development Area TIF. Mr. Vamer asked whether improvements such as landscaping and foundation work increase the assessment. Mr. Inks responded that it is private property, so there is increased assessment. South Bend Redevelopment Commission Regular Meeting — November 8, 2012 6. NEW BUSINESS C. South Bend Central Development Area (1) continued... Upon a motion by Mr. Vamer, seconded by Mr. Downes and unanimously carried, the Commission approved the Agreement for License with 112 West Jeff, LLC for renovation at the southwest corner of Michigan and Jefferson. (Citizens' Bank & Trust Plaza) (2) Agreement for Sale of Land for Private Development with Maribeth Roncz for 502 W. Western Ave. Mr. Relos noted that in July 2011 this property was taken through the disposition process, with no bids being received. There is now an interested party who would like to acquire and rehabilitate this property into a vocational training facility. Maribeth Roncz would like to proceed with a Contract for Sale for this property, so she can make the necessary improvements to turn this vacant building into a community asset. These improvements will enhance this southwest comer of Western & William, and the general Coveleski area. Highlights of the Contract for Sale are: • $750 sales price • $30,000 in property improvements in a one year period • No tax abatements sought for any part of the development • Self - financed acquisition and rehabilitation • Restrictions for use of property • Title reinvestment upon certain events. Staff requests Commission approval of this Contract for Sale. Mr. Downes asked for an explanation of what type of vocational training is intended. What is the business plan? Mr. Mark Scott responded that they have run a construction ministry in town for several years called MC3. They hoped to make this kind of a hub for this community, which they have. They recently finished the 747 S. Michigan to house the Millers Vets Center for the Center for the Homeless. That was done 80% by volunteers from the community, both within our ministry and with community involvement. We hope to use this building to store equipment and to train people with no skill sets to do construction work by performing construction for other non - profit organizations. Mr. Downes asked if there would be much outside storage. Mr. Scott responded that there would be none. South Bend Redevelopment Commission Regular Meeting — November 8, 2012 6. NEW BUSINESS e, . V C. South Bend Central Development Area (2) continued... Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Agreement for Sale of Land for Private Development with Maribeth Roncz for 502 W. Western Ave. (3) Resolution No. 3103 approving the Fair Market Value of Property in the South Bend Central Development Area. (325 -333 S. Lafayette Blvd., former Schillings Camera) Mr. Relos noted that Resolution No. 3013 sets the Fair Market Value of 325 -333 S. Lafayette Blvd. at $$277,500 or a lease rate of $3.43 per sq ft. The values were determined from the average of two independent appraisals. Upon motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3103 approving the Fair Market Value of Property in the South Bend Central Development Area. (325 -333 S. Lafayette Blvd., former Schillings Camera) (4) Approval of Bid Specifications and Design Considerations for 325 -333 S. Lafayette Blvd. Mr. Relos noted that the Bid Specifications stipulate that all offers must meet the minimum price listed on the Offering Sheet. Proposals for redevelopment may include projects that are permitted within the CBD zoning designation. All proposals must conform to the existing zoning provisions set forth for the CBD as outlined in the South Bend Zoning Ordinance Title 21 of the City of South Bend Municipal Code. Proposals for the reuse of the property must include a basic reuse plan for the site and a project timeline detailing aspects of the site redevelopment and site improvements. During the review process, emphasis will be placed on compatibility with the goals and objectives of the Coveleski Redevelopment Area as well as the Development Plan for the South Bend Central Development Area. Bidders are prohibited from the use of the property for speculation or land- holding purposes. All other provisions of the South Bend Central Development Area Development Plan must be met Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Bid Specifications and Design Considerations for 325 -333 S. Lafayette Blvd. (5) Authorization to publish Notice of Intended Disposition of Property with publication dates of November 16 and November 23, 2012 and receipt of bids at 9:00 a.m., December 13, 2012. (325 -333 S. Lafayette Blvd.) South Bend Redevelopment Commission Regular Meeting November 8, 2012 6. NEW BUSINESS C. South Bend Central Development Area (5) continued... Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission authorized publication of the Notice of Intended Disposition of Property with publication dates of November 16 and November 23, 2012 and receipt of bids at 9:00 a.m., December 13, 2012. (325 -333 S. Lafayette Blvd.) (6) Authorization to file for Special Exception with Area Board of Zoning Appeals (325 -333 S. Lafayette) Ms. Nicholl -Smith noted that staff has been working with the principals of Indiana Whiskey Company to develop a business plan and finalize a business location to begin their operations. The business plan proposes that Indiana Whiskey will distill and package the whiskey for distribution for sale and will also have a public sales and tasting area. After considering several sites, they have selected the former Schillings building as a prime location for this start-up business. Not only does it have high visibility for the retail portion of the business, but also has loading facilities in the back. The current CBD zoning of that property would allow the retail aspects, but would not allow the manufacturing and distribution aspects of their business. A Special Exception would be needed from the Area Board of Zoning Appeals (AZBA) and the South Bend Common Council to Manufacturing/Retailer. Indiana Whiskey Company would like to initially lease the building, with the intent to purchase it if the business succeeds. Therefore, the Redevelopment Commission, as owner of the property would need to petition for the Special Exception. Staff feels the business would be an asset to the downtown as well as to the Coveleski Stadium and recommends authorizing the signing of the petition for Special Exception. Submission of the petition by November 13 would meet the filing deadline for the December 5 ABZA meeting and the item could be on the January 14 meeting of the Common Council. Captain Charlie Florance, a service connected disabled veteran, explained that when he left the Army's Wounded Warrior program in 2010 he started on a path to opening his own company. He landed at Notre Dame's MBA program, and from there has created a plan to open a whiskey distillery in Indiana. He wants every element in the value chain of the business to be from Indiana, potentially from St. Joseph County, including all the cereal grains that go into the bottle. Additionally, since it is veteran- focused, they are hoping to donate 3% of profits to veteran substance abuse or vocational rehabilitation programs. Without the zoning exception, they cannot use the Schillings building. 0 South Bend Redevelopment Commission Regular Meeting November 8, 2012 6. NEW BUSINESS C. South Bend Central Development Area (6) continued... Captain Florance noted that, initially, there will not be much payback in taxes, but the excise tax on alcohol is at least $2.50 per bottle. So, as they grow, the tax benefit will increase to the local governments. Captain Florance also noted that they hope to make targeted employment agreements with service connected disabled veterans in the area. Mr. Downes asked if they had spoken to any neighboring businesses, and, if so, what was the response. Captain Florance said they intend to talk to the VA clinic, but do not expect any objection from them. Mr. Downes asked if there is much odor to the process. Captain Florance responded that there are some combustion components, but nothing outside of what you'd expect for the operation. Mr. Varner noted that the Commission has spent quite a bit to acquire this building. If Indiana Whiskey eventually outgrows the space, will there be any agreement on the building's repurchase? Ms. Nieholl -Smith responded that if the Special Exception for manufacturing/retailer goes through and they would submit a bid to lease the building first. If the business is not successful, the Commission would simply get the building back. If the business is successful, Indiana Whiskey would consider purchasing the building outright. Ms. Jones asked if they will be leasing the entire building. Ms. Nichol] -Smith responded that they would start by leasing the southern end of the building. The Commission could lease out the northern portion to an office user if the opportunity presented itself. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission authorized submission of a petition to the Area Board of Zoning Appeals for a Special Exception at 325 -333 S. Lafayette for Indiana Whiskey Company and authorized Don inks to sign all documents related to it on behalf of the Redevelopment Commission. ('n Request for improvements to West Entry of Century Center. Mr. Inks noted that Century Center has requested up to $50,000 of improvements to the West Entry. Those funds would be matched by $150,000 from the Hotel -Motel Tax Fund. The improvements include new sliding doors to replace the old doors, new concrete paving, a canopy and accent lighting. Mr. Lamic, architect for the work to be done, noted that this same work was presented a year ago. The cost estimates were tested with Ziolkowski Construction. They feel confident that 10 South Bend Redevelopment Commission Regular Meeting — November 8, 2012 6. NEW BUSINESS C. South Bend Central Development Area (7) continued... $200,000 will cover the cost of all the work planned. The new entry will provide nice, increased efficiencies and universal accessibility. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the request for up to $50,000 in improvements from SBCDA TIF funds to upgrade the West Entry of Century Center. (8) Notice of Renewal of Agreement with Robert Bradley Associates, LLC d /b /a CB Richard Ellis Bradley. Ms. Jennings noted that this is the annual renewal of contract with CB Richard Ellis for managing the Redevelopment Retail. In spite of the difficult economy, with the lease to Edible Arrangements in the Michigan Street Shops, the Michigan Street Shops is 100% occupied. The terms remain the same. Staff recommends renewing this Agreement. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Notice of Renewal of Agreement with Robert Bradley Associates, LLC d/b /a CB Richard Ellis Bradley \ D. Airport Economic Development Area (1) Agreement for Sale of Land for Private Development with MMVance, LLC for northwest corner of Indiana & Kemble (Phoenix Engineering) Mr. Relos noted that on October 25, 2012, the Commission approved a professional services agreement with Danch Harper to rezone, replat, and vacate excess right of way, pending a Contract for Sale with Phoenix Engineering (Phoenix), who would like to acquire the two Commission -owned lots to their north and west. Phoenix Engineering is currently grandfathered under a Mixed Use zoning classification. The addition will require them to be brought up to current, Light Industrial, zoning standards. Phoenix would like to proceed with the Contract for Sale, which has the following highlights: $2,000 sales price ($1,000 per lot) No tax abatements sought for any part of the development Items precedent to closing include: ♦ Proof of financing ♦ Commission approval of the final site plan and development specifications South Bend Redevelopment Commission Regular Meeting November 8, 2012 6. NEW BUSINESS D. Airport Economic Development Area (1) continued... 36 month construction period for Phase I (north addition) and Phase II (west addition) Restrictions for use of property (as detailed in Section VI(A)(1) & (2)) Title revestment upon certain events. Mr. Relos noted that the Light Industrial zoning has some uses that we would not like to see near Ignition Park. The restrictions placed on the property will run with the property if/when it is ever sold and will prevent those uses. Staff requests Commission approval of the Agreement for Sale of Land. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Agreement for Sale of Land for Private Development with MMVance, LLC for northwest corner of Indiana & Kemble, contingent on successful rezoning of the property. (2) Resolution No. 3105 approving of the form of an Economic Development Memorandum of Understanding and authorizing its execution and attestation with respect to an economic development project to be undertaken by F Cubed, LLC in the City of South Bend and authorizing the Commission to initiate a disposition process in connection with the project. Mr. Inks noted that F Cubed is one of the first companies to graduate from Innovation Park. They would like to locate their growing business in Ignition Park when a multi -tenant facility is available for them to lease space in. In the interim they will be locating in the former St. Joseph High School building, now Notre Dame's Hillcrest Hall. As part of the Commission's efforts to retain this company in South Bend and eventually locate them in Ignition Park, the Memorandum of Understanding (MOU) commits Redevelopment to acquiring certain scientific equipment and providing an opportunity for F Cubed to lease that equipment. The cost of the equipment is estimated at $125,489. Adding a 10% contingency, staff requests a not to exceed amount of $138,000. The MOU requires F Cubed to create 13 jobs and invest capital of $2,647,550. Mr. Ivey, president and CEO of F Cubed, noted that F Cubed is in the business of making molecular diagnostic equipment for use in environmental monitoring, food safety applications and medical diagnostics. As of last month they transitioned from being a research and development company to an actual commercial company, having sold their first few units that are able to take a. raw ,sample of blood and diagnose lymphatic filariasis, the cause of Elephantiasis. At the present time F Cubed has seven full time and three part time employees. They have a very diverse workforce. When they began their business at Innovation Park, they intended to grow and move to Ignition Park. They started with 1,100 sq. ft. They have since doubled that space in Innovation Park. They expect to move into 12 South Bend Redevelopment Commission Regular Meeting — November 8, 2012 6. NEW BUSINESS D. Airport Economic Development Area (2) continued... Hillcrest Hall within a couple of weeks. They expect by the end of 2015 to add about thirty employees and invest $2.6M in their business locally. They will be making biochips in South Bend. The instrument is being made in Goshen, Indiana by a partner of F Cubed, They expect to make about 20,000 bi6chips in 2013 and up to 300,000 by 2015. Mr. Ivey noted that a strong incentive for their remaining in South Bend is that there is only one nanotechnology program at Ivy Tech in Indiana and that is at Ivy Tech South Bend. Their company has plenty of PhDs and well educated people on staff now, but will be requiring people who can do that kind of work. Mr. Inks noted that staff has been working with Faegre Baker Daniels to put together the MOU. Although St. Joseph High is outside the TIF area, Faegre Baker Daniels has indicated that the intent to move to Ignition Park makes the project TIF eligible. The MOU is drafted in such a way that if the business does not move into the Airport Economic Development Area, then there will be a repurchase requirement of the equipment by the business at 150% of our cost. Staff is pretty comfortable that this meets the TIF requirements for spending money in this fashion. Faegre Baker Daniels intends to provide a written opinion to that effect. Staff recommends approval, contingent on receipt of that opinion. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3105 approving of the form of an Economic Development Memorandum of Understanding and authorizing its execution and attestation with respect to an economic development project to be undertaken by F Cubed, LLC in the City of South Bend and authorizing the Commission to initiate a disposition process in connection with the project, contingent upon written opinion of its TIF eligibility by Faegre Baker Daniels. E. West Washington - Chapin Development Area There was no business in the West Washington- Chapin Development Area. F. South Side Development Area (1) Resolution No. 3104 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Fellows Street Corridor Improvement Project — Supplement #4) Mr. Kain noted that the Agency Agreement in Resolution No. 3104 allows the Board of Public Works to hire Christopher B. Burke Engineering to provide professional services for the design of the Fellows and Ireland intersection as approved in concept at the October 25 13 li South Bend Redevelopment Commission Regular Meeting — November 8, 2012 6. NEW BUSINESS F. South Side Development Area (1) continued... meeting. The modified Plan C -1 adds a left turn lane on Fellows north of Ireland and signal improvements at that intersection and adds sidewalks to both sides of Fellows south of Walter to connect to sidewalks on Ireland. The proposal contains a scope of services to design those elements and also to study traffic calming measures for Fellows and study stopping sign distance for the 3 -way stop sign at Fellows and Teri. The fee for those services is $39,700. Staff requests approval of Resolution No. 3104. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3104 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Fellows Street Corridor Improvement Project — Supplement #4) (2) Proposal for additional services for Fellows St. Corridor Improvement — Phase H design. Mr. Kain noted that additional services were performed by Christopher B. Burke Engineering beyond what was authorized by the Commission for Supplement #2. Christopher Burke designed multiple options for routing Fellows Street and conducted public meetings. They have incurred additional costs of $68,108. Staff recommends approval of the additional amount. Mr. Downes noted that all that additional work led to a very good outcome. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission accepted the proposal for additional services for Fellows St. Corridor Improvements — Phase II design in the amount of $68,108. G. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. H. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area 14 South Bend Redevelopment Commission Regular Meeting — November 8, 2012 6. NEW BUSINESS I. Other (1) Project Assignment with Crowe Horwath fur "fax Increment Financing Neutralization Worksheets. Mr. Inks noted the Commission hires Crowe Horwath annually to provide Tax Increment Financing Neutralization Worksheets. The purpose is to adjust the base values for each TIF area by adjusting for the natural growth in property values. As property values increase, that gets netted out of these calculations so that the TIF only picks up increment related to true new development in the area. Crowe has been doing these calculations for us for a number of years. Their fee remains the same as last year, a not -to- exceed amount of $15,000 for professional services, plus incidentals. There were no incidental expenses last year. Mr. Inks noted that these calculations are required by state law to be done every year. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Project Assignment with Crowe Horwath for Tax Increment Financing Neutralization Worksheets. J. Ratification of Services Contracts Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission ratified the Services Contracts approved by staff since October 25, 2012. 7. PROGRESS REPORTS A. Tax Abatement Mr. Inks noted that its September 27, 2012 meeting the Commission adopted a policy that it would no longer review tax abatements before allowing those to go to the Common Council for consideration. That was in accordance with recent changes in state law. Staff indicated at that time that it would bring back to the Commission a periodic report of tax abatements that are moving forward. In the future Commissioners will see a report similar to what is presented today outlining the abatement type, term, a project description and estimated cost of the project. 15 Commission Contract Staff Role in Contractor Service Provided Transaction Amount Member Portion of land in front of 4711 S. Acquisition CB Richard Ellis Broker Opinion $2,000 Schalliol Miami Bradley of Value Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission ratified the Services Contracts approved by staff since October 25, 2012. 7. PROGRESS REPORTS A. Tax Abatement Mr. Inks noted that its September 27, 2012 meeting the Commission adopted a policy that it would no longer review tax abatements before allowing those to go to the Common Council for consideration. That was in accordance with recent changes in state law. Staff indicated at that time that it would bring back to the Commission a periodic report of tax abatements that are moving forward. In the future Commissioners will see a report similar to what is presented today outlining the abatement type, term, a project description and estimated cost of the project. 15 South Bend Redevelopment Commission Regular Meeting — November 8, 2012 The Next Regular Meeting of the Redevelopment Commission is scheduled for 9:30 a.m., November 29, 2012. 9. ADJOURNMENT Upon a motion by Mr. Downes, secoiidgd by Mt. Varner and unanimously carried, the Commission adjourned at 10:15 a.m. Donald E. Inks, Director Marcia 1. Jones, President V