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HomeMy WebLinkAbout05-16-08 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING May 16, 2008 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Mr. Karl King, Vice President Mr. Greg Downes, Secretary Mr. Hardie Blake, Jr. Dr. David Varner Legal Counsel: Mr. Charles S. Leone, Esq. Mr. Lawrence Meteiver, Esq. Redevelopment Staf£ Mr. Don Inks, Director 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. Rich Hill, Baker & Daniels Mr. Richard Nussbaum, Sopko, Nussbaum & Inabnit Ms. Jamie Loo, South Bend Tribune Ms. Rita Kopala Ms. GlendaRae Hernandez Ms. Linda Wolfson, Community Forum for Economic Dev Mr. Jim Cierzniak Ms. Mary Preuss, WNIT Mr. Craig Sullivan Ms. Ida Watson Mr. Gary Cole, The Troyer Group Mr. Roger Chrastil Mr. Ramaden Salameh Ms. Tamara Salameh 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, May 2, 2008. Dr. Varner noted that on page 8 it quotes him as saying that petitioners for tax abatement "should be South Bend Redevelopment Commission Regular Meeting -May 16, 2008 2. APPROVAL OF MINUTES (CONT.) A. continued... made aware of the potential for abatements being rescinded." He meant that the Council would not be considering new tax abatements, not that they would rescind an existing one. He asked that the minutes be changed. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, May 2, 2008, as corrected. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, MAY 2, 2008, AS CORRECTED Redevelopment Commission Claims submitted May 16, 2008 for approval. 305 FUND SBCDA BOND Wightman Petrie 6,606.25 St. Joseph County Treasurer 21,258.68 324 AIRPORT AEDA Wightman Petrie 6,742.50 Meridian Title Corporation 685.00 Abonmarche 1,400.00 The Troyer Group 15,368.79 Hull & Associates, Inc. 37,739.31 DLZ 2, 5 80.00 DHA 21,628.00 Board of Public Works 30,600.00 420 FUND TIF DISTRICT-SBCDA GENERAL Meridian Title Corporation 715.00 Wightman Petrie 6,250.00 Jerome E. Michaels, MAI 4,050.00 R.E. Pitts & Associates, Inc. 5,300.00 Ralph D Lauver 5,700.00 Indiana Michigan Power 175.65 2 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 3. APPROVAL OF CLAIMS (CONT.) 420 FUND TIF DISTRICT-SBCDA GENERAL Rose Pest Solutions 93.00 CB Richard Ellis 608.30 DTSB 16,562.50 422 FUND WEST WASHINGTON Tri County News 64.55 South Bend Tribune 97.46 SBD Reprographics 583.14 Circle Lumber, Inc. 19.82 430 FUND SOUTH SIDE DEVELOPMENT Lehman & Lehman 1,911.95 619 BLACKTHORN GOLF COURSE Meadowbrook Golf Group, Inc. 8,000.00 $ 194,739.90 Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved the Claims submitted May 16, 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. 2450 amending the Airport Economic COMMISSION APPROVED THE CLAIMS SUBMITTED MAY 16, 2008, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS 3 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Development Area Development Plan. (Adding properties to the Acquisition List) Mr. Inks noted that the public hearing file is complete, containing: (1) A copy of the Notice of Hearing; (2) A copy of Resolution No. 2450; (3) An affidavit from Carol Smith, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on May 2, 2008; (4) An affidavit from Richard Andrysiak, Classified Manager of the Tri-County News, that the Notice of Hearing was published in that newspaper on May 2, 2008; (5) A statement from Nicholas Witwer that on May 2, 2008 affected property owners and registered neighborhood associations were sent notice of the Public Hearing; (6) The mail was checked prior to this meeting. As of 10:00 a.m., May 16, 2008, there were no written remonstrances received related to Resolution No. 2450. Mr. Witwer noted that Resolution No. 2450 adds to the Acquisition List of the Airport Economic Development Area Development Plan three properties in the LaSalle Square area, 1007 N. Bendix, 1033 N. Bendix; and a property between those two that has no address in tax data other than 18; 2014- 2020 S. Main Street (EMI); and 1202 S. Lafayette (International Harvester). Ms. Jones opened the Public Hearing on PusLic HEARING oN RESOLUTION No. 2450 Resolution No. 2450 for whoever wished to be heard. 4 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... JIM CIERZNIAK: 1518 Pinetop Trace, Mishawaka. I'm speaking "for," I guess. Just a couple questions and a comment. In talking with the staff, I know that the initial estimate was $700,000 to purchase all these properties. I'm wondering if that includes the demolition of buildings. I know there are two pretty good sized buildings on Lafayette and Main Streets. Does the $700,000 include demolition costs? And then, another question, what is the time table for appraisals? I understand the appraisals come after this meeting. Then, a suggestion. In view of the fact that the city does have a lot of property that are acquired, I would suggest a sign on the site, such as "Building for the 21st Century" or, if you are not planning to use the land for awhile, "got this on reserve for the 22"d Century" or something like that. I was over to the Eckler-Lahey property this morning and notice that there's very little that's being done. It looks like bombed out Dresden. I think when we acquire property like that, it behooves the city to move faster to remove an eyesore from the community. Thank you. NICK WITWER: Demolition costs are not considered in this. This is an estimate of the purchase price for the property. Demolition would be on top of the $700,000. Signage is a great idea. Especially in the LaSalle Square area where we are undergoing some planning efforts. We're going to start a South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... considerably large effort out there. It would be good to have some signage or for visibility of the project. Eckler-Lahey, do we have estimates on it? BILL SCHALLIOL: No, we open bids in early June. NICK WITWER: Timeline of appraisals? Appraisals are on the agenda for today. They'll be started after they are authorized today, depending on the workload of the appralsers. Ms. Jones asked if anyone else wished to speak regarding Resolution No. 2450. There was no one else who wished to speak. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (2) Commission approval requested for Resolution No. 2450. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2450 amending the Airport Economic Development Area Development Plan. (Adding properties to the Acquisition List) B. South Bend Central Development Area (1) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Architectural Study, 500 S Michigan Block/Fat Daddy's) 6 COMMISSION APPROVED RESOLUTION NO. 2450 AMENDING THE AIRPORT ECONOMIC DEVELOPMENT AREA DEVELOPMENT PLAN. (ADDING PROPERTIES TO THE ACQUISITION LIST South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... Ms. Laurent noted that as part of the Downtown Strategy, the Commission recently acquired the 500 block of S. Michigan Street. In doing so we committed to study the best reuse potential of the block as a redevelopment site, and to examine any possibility of saving the structures or portions of the structures that are historically interesting to the downtown fabric. MPA Architects has submitted a proposal for professional services that includes measurement and documentation of the existing buildings and completion of a basic feasibility or marketing package. This will illustrate to potential developers our preferred vision of stabilizing the front portions of the buildings and undertaking a partial demolition of the back half to allow for a modernized footprint and parking. MPA will complete that work for $7800. A second option is to have MPA look at an appropriate building type and use that would complement the corridor should the buildings need to be entirely demolished. MPA will complete this portion of the study for $3750. And, we have also asked for a proposal to complete specifications for public bidding for an immediate cleanup of the property, to include removing and replacing boards that secure the building and fresh paint. MPA will complete the specs for $1875. Staff recommends acceptance of all three components of the proposal. Dr. Varner asked, in light of the anticipated budget shortfalls due to HB 1001, what the 7 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... value is in envisioning a new building before we have seen if there is interest in reusing the existing building. Wouldn't it be better to wait to see if we need to go to that additional expense? Mr. Downes wondered if the cost would go up for that expense if it wasn't contracted for in connection with cleanup and boarding and the services related to reuse of the building. Ms. Laurent said she did not believe the cost would be more later and agreed it would make sense to wait. Upon a motion by Dr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the request for proposal and accepted the proposal from MPA Architects for cleanup, boardup and a marketing package for reuse of the buildings in the 500 block of S. Michigan at a cost of $9,675. (2) Staff report on acquisition of property in the South Bend Central Development Area. (300 W Jefferson) Ms. Laurent noted that since early 2007 redevelopment staff has been in discussions with representatives of WHIT Broadcasting advancing a concept for relocation of its studios from its current location in Elkhart to the WSBT building at 300 W. Jefferson. WSBT will be vacating its building late this year. WNIT has the building under contract. 6. NEW BUSINESS (CONT.) COMMISSION APPROVED THE REQUEST FOR PROPOSAL AND ACCEPTED THE PROPOSAL FROM MPA ARCHITECTS FOR CLEANUP, BOARDUP AND MARKETING PACKAGE FOR REUSE OF THE BUILDINGS IN THE 500 BLOCK OF S. MICHIGAN AT A COST OF $9,675 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 B. South Bend Central Development Area (2) continued... This promises to be an exciting and common sense reuse of the building. WHIT expects to take possession of the building between October and December 2008. They have hired The Troyer Group to redesign and update the building to reflect the latest in broadcasting technology. In conjunction with the proposed move, WNIT plans to emphasize its public mission with the introduction of a public media center, featuring inviting spaces for training, displays, and public gatherings that were not possible at the present location. We are also looking at the possibility of many synergies between them and city and county government such as broadcasting meetings. Mary Pruess, President and General Manager of WNIT, distributed copies of their updated proposal. WNIT is very excited to be relocating to downtown South Bend and to share their plans for the WSBT building. Ms. Pruess stated that this expansion will enable WNIT station to improve and extend its array of media services in the public interest for the whole region. They feel the design will be a very attractive asset to the downtown. Ms. Preuss noted that their fundraising is moving along, and this announcement will give it a terrific boost. Ms. Laurent noted that WNIT is asking the Commission for $1,000,000 toward funding 9 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... of construction of the new exterior and public lobby area of the building. The city contemplates taking an easement on the facade in order to do that. The atrium would be used for interviews, art displays, and other public displays that benefit downtown. Gary Cole, The Troyer Group, showed the schematic concept of the exterior and three floors. The entire facade will be redone, adding windows and doors on the first floor. At the corner, the building will be demolished to erect a structure that supports the large amount of glass and a jumbo television screen. Behind the exterior will be new stairways and corridors. The satellite dishes on the roof which will be visible from the street will be painted to contribute to the new look. Ms. Laurent noted that The Troyer Group would prepare a standalone budget for the facade and atrium/lobby, specifications for public bidding, have that overseen by the Board of Public Works and bring it back to the Commission for approval. With Commission approval today, staff would initiate preparation of a development agreement with WHIT and preparation of a professional services contract with the Troyer Group prepared. Ms. Laurent noted that the public benefit of the project is significant in that jobs that would otherwise be lost when WSBT vacates the downtown will be replaced. WNIT 10 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... expects to have approximately 40 jobs with a payroll of $1. SM and overall investment in the project of $6.SM. WHIT is anon-profit organization, thus does not pay property taxes. That is the same situation as other cultural institutions in the downtown that we are most proud of, that cannot be replicated elsewhere, such as the Studebaker Museum, the public library, and the Morris Performing Arts Center. We think this will be aquality-of--life feature for our downtown. We are pleased to support the relocation of WNIT to the downtown and ask for authorization to work with legal counsel to finalize the terms. Mr. Downes asked if there will need to be any changes to the intersection of Jefferson and Lafayette. Ms. Laurent responded that the only improvements would be to landscaping. Mr. Downes asked how many feet clearance there will be from the corner of the atrium to the curb. Ms. Laurent responded that at ground level, the corner of the building will be in the same location as it is now. The corner of the building will fan out above ground. Dr. Varner asked if we've identified the funding source for the Commission's investment. Ms. Laurent responded that it will be funded from SBCDA TIF. 11 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... Mr. Blake asked what "public gatherings" would include. Ms. Laurent responded that WHIT aims to increase public outreach and public awareness of what goes on with their company. Their space will be offered for public meetings. Ms. Preuss noted that the new floor plan includes a community room that can be subdivided with movable walls. The lobby area will be used to convene groups and have public events. Also, WNIT will have two channels, one of which will be an Indiana channel with statewide and local programming. Mr. Blake asked if the "public gatherings" is different than what WNIT has been doing in the past. Ms. Preuss responded that it definitely is. Currently their studio is in the Elkhart Career Center while their offices are in some modular buildings behind the Career Center. They are operating out of 8, 500 sft. Their needs assessment ten or fifteen years ago showed they needed 30,000 sft. There has been no extra space for public gatherings. The new building has 30,000 sft on each floor. Dr. Varner asked about WNIT replacing the loss of public access TV. Ms. Preuss said they have been in discussions with the Mayor's office and the Board of Public Works about that and with the Common Council. WNIT has been providing that coverage for Council meetings since the cable company discontinued their operation. WNIT has a proposal in front of the city to 12 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... continue that long term, but it's the Council's decision now. Dr. Varner said he wondered not about government access, which is essential, but public access. Ms. Preuss responded that that channel belongs to the city, so the city would contract with a station to provide that access if it so desires. Mr. King asked about the timeline for renovation. Ms. Preuss responded that WHIT is subject to WSBT's timeline. WSBT has said they will be out by December 31, 2008. Renovation will take about a year, depending on weather. They don't want to be doing demolition of the corner for the atrium in January. Dr. Varner asked if they have funding in place for the project, noting that they have only raised $2. SM at this point. Mr. Sullivan responded that the capital campaign is well under way. This announcement will give the campaign a big boost. They have not yet gone to the full public to raise funds. Dr. Varner said that it's nice to have a project become visible soon after an announcement rather than stall over fundraising, particularly when the city has committed funds. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission authorized staff to work on a development contract with WNIT for the proposed project and authorized staff to COMMISSION AUTHORIZED STAFF TO WORK ON A DEVELOPMENT CONTRACT WITH WHIT FOR THE PROPOSED PROJECT AND AUTHORIZED STAFF TO PREPARE A CONTRACT FOR PROFESSIONAL SERVICES WITH THE TROYER GROUP 13 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... prepare a contract for professional services with The Troyer Group. (3) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Survey, Gates Toyota site) Mr. Schalliol noted that we need the Gates property surveyed from Wayne to Western, Lafayette to William St. Wightman Petrie has submitted a proposal in the amount of $5,525. Staff requests approval for anot-to- exceed amount of $5,750. Upon a motion by Mr. Downes, seconded by Dr. Varner and unanimously carried, the Commission approved the request for proposal for professional services and accepted the proposal from Wightman Petrie for anot-to-exceed amount of $5,750 for the scope of services proposed. (4) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Appraisals, Gates Toyota site) Mr. Schalliol noted that as the Commission moves forward to plan for Area A bounded by Western, Lafayette, Wayne and Taylor and Area B bounded by Western, Main and Lafayette we need appraisals of the property to set values for budgeting. Staff solicited proposals and recommends accepting the low proposals from R.E. Pitts and R.E. COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR PROFESSIONAL SERVICES AND ACCEPTED THE PROPOSAL FROM WIGHTMAN PETRIE FOR ANOT-TO-EXCEED AMOUNT OF $5,750 FOR THE SCOPE OF SERVICES PROPOSED 14 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued... McCloskey at $6,700 and $7,000 respectively. Mr. Schalliol asked the Commission to approve a total not-to-exceed amount of $14,000. Dr. Varner asked about the use of appraisers from Granger. Mr. Schalliol responded that the other two appraisers we sought proposals from were from South Bend, but their fees were higher. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved the request for proposals and accepted the proposals from R.E. Pitts and R.E. McCloskey for the scope of services and a total cost not to exceed $14,000. (5) Commission authorization requested from Downtown South Bend to use the former Rink Riverside site for its first Eco-Fest on June 21, 2008. Mr. Inks noted that the Commission previously passed Resolution No. 2438 allowing staff to sign off on the temporary use of property and work with Legal to prepare the necessary documents to move those forward. We were required to bring those agreements back to the Commission for ratification. That's what we are doing today. In the future, what we would like to do is use a listing similar to what we use for titles, survey, and appraisals. Though the resolution didn't mention such a list, he COMMISSION APPROVED THE REQUEST FOR PROPOSALS AND ACCEPTED THE PROPOSALS FROM R.E. PITTS AND R.E. MCCLOSKEY FOR THE SCOPE OF SERVICES AND A TOTAL COST NOT TO EXCEED $14,000 15 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (5) continued... asked the Commission for permission to use that in the future. They agreed that is what was intended. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission ratified authorization granted to Downtown South Bend for use of the former Rink Riverside site at 216-228 Sycamore for its first Eco-Pest on June 21, 2008. (6) Commission authorization requested from AIDS Ministries/AIDS Assist to use the Wayne St. Garage for its annual Rooftop Rendezvous on June 21, July 12, August 16 and September 20, 2008. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission ratified authorization granted to AIDS Ministries/AIDS Assist for use of the Wayne St. Garage for its annual Rooftop Rendezvous on June 21, July 12, August 16 and September 20, 2008. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission authorized staff to present the temporary use agreements for ratification in the form of a list. (7) Commission approval requested for Resolution No. 2454 approving a proposed lease between the South Bend Redevelopment Authority, as Lessor, and the Redevelopment Commission, as COMMISSION RATIFIED AUTHORIZATION GRANTED TO DOWNTOWN SOUTH BEND FOR USE OF THE FORMER RINK RIVERSIDE SITE AT 216- 228 SYCAMORE FOR ITS FIRST ECO-PEST ON JUNE 21, 2008 COMMISSION RATIFIED AUTHORIZATION GRANTED TO AIDS MINISTRIES/AIDS ASSIST FOR USE OF THE WAYNE ST. GARAGE FOR ITS ANNUAL ROOFTOP RENDEZVOUS ON JUNE 21, JULY 12, AUGUST 16 AND SEPTEMBER 20, 2008 COMMISSION AUTHORIZED STAFF TO PRESENT THE TEMPORARY USE AGREEMENTS FOR RATIFICATION IN THE FORM OF A LIST 16 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (7) continued... Lessee, for certain land and public improvements, approving preliminary plans, specifications and cost estimates, setting a public hearing on the proposed lease pursuant to Indiana Code 36-7-14- 25.2, and authorizing publication of Notice of the Public Hearing and related matters. Mr. Inks noted that Resolution No. 2454 relates to bond financing for capital improvements at Century Center. As with any aging facility, Century Center requires proper maintenance over time in order to preserve that asset in the community. There is a list of major repairs that are being considered as a part of this financing. In addition, there are certain enhancements to the building, grounds and streetscape that are being considered, including skylight stabilization, boiler replacement, masonry repairs to Island Park, and replacement of chillers, etc. Mr. King, a member of the Century Center Board of Managers, noted that the panes of the skylight have been falling to the floor, the roof leaks, the boiler is about dead as are the chillers, Island Park has dangerous breaks in the concrete. The useful life of these things has expired. Mr. King also noted that Century Center has retained on an ongoing basis the Phillip Johnson Architecture firm that designed Century Center in the first place. Alan Ritchie, the architect from that firm who actually designed the building, has a list of enhancements that he recommends 17 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (7) continued... the city do as it has funds. Mr. King noted that Century Center receives an annual allocation from the Hotel Motel Tax Board of the proceeds of the innkeepers tax to pay for maintenance and repair as well as subsidizing operations. However, because of the urgent nature of these repairs and the amounts of money involved, we decided it would be more economical to do all of these projects at the same time and use bond financing to fund them rather than do them on apay-as-you-go basis. The bond will be repaid from the annual Hotel Motel Tax. Mr. Downes asked about the possibility of Century Center creating a sinking fund to pay for repairs like this in the future. Mr. King responded by explaining the nature of Century Center's funding from the Hotel Motel Tax Board. Century Center does not operate at a profit; it never has and never will. It receives funds from the Hotel Motel Tax Board as necessary to break even each year. Under new management performance has been improving, and there is less money needed from the Hotel Motel Tax Board. Nevertheless, Century Center ends up having a net profit and loss of zero at the end of each year. There would be no money to put into a sinking fund. The Hotel Motel Tax Board, however, maintains a reserve for the use of Century Center and the Convention & Visitors Bureau, the two units that are funded by that tax. The Hotel Motel Tax Board will be putting almost $900,000 of its reserve into 18 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (7) continued... the project, in addition to the bond funds. Baker & Daniels is serving as bond counsel for the Century Center bond. Rich Hill explained why the bond is going through the Redevelopment Commission and why there is a lease. The Lease is actually an Addendum to the Lease approved in 1993 between the between the Commission and Redevelopment Authority. We are amending it to provide for these new projects. Any time we pledge revenue that is not generated from the facility, those funds are considered the same as property tax funds. If we don't use the Lease/Purchase mechanism between the Authority and Commission, we would implicate the city's 2% debt limitation. It makes sense, because it is not a pledge of city funds. The Addendum to Lease includes a maximum rental amount. We don't know what the requirement of the bonds will be, but as we initiate this lease approval process, we go for an amount that we think would provide maximum flexibility. In most cases we lower the lease payment, but after the public hearing process is completed, it cannot be increased without starting the public process again. Mr. Hill noted that the original Resolution No. 2454 set a public hearing for June 6. We are now recommending the public hearing be set for June 13 which would give the Common Council opportunity to act on the lease first, on June 9. 19 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (7) continued... Mr. Hill noted that the selling of this bond does require essentially paying off an earlier bond issued by the county for improvements at Century Center. While that's not a typical refunding, it does implicate some of the provisions HEA 1001. So, we want to make sure we have the maximum flexibility in terms of making sure the terms meet the needs of the Authority, the Commission and the Hotel Motel Tax Board. We believe that all parties would benefit by closing on these bonds prior to July 1. Dr. Varner asked if the reason for Council approval is that it will require a general obligation bond. Mr. Hill said it will not. Statutorily, any lease between the Authority and the Commission requires Council approval. Dr. Varner felt it was important for the public to understand that this is not an obligation to levy a tax to support a bond issue which might pay out as the result of some circumstance. Upon a motion by Mr. Downes, seconded by Dr. Varner and unanimously carried, the Commission approved Resolution No. 2454 approving a proposed lease between the South Bend Redevelopment Authority, as Lessor, and the Redevelopment Commission, as Lessee, for certain land and public improvements, approving preliminary plans, specifications and cost estimates, setting a public hearing on the proposed lease pursuant to Indiana Code 36-7-14-25.2, and authorizing publication of Notice of the COMMISSION APPROVED RESOLUTION NO. 2454 APPROVING A PROPOSED LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT AUTHORITY, AS LESSOR, AND THE REDEVELOPMENT COMMISSION, AS LESSEE, FOR CERTAIN LAND AND PUBLIC IMPROVEMENTS, APPROVING PRELIMINARY PLANS, SPECIFICATIONS AND COST ESTIMATES, SETTING A PUBLIC HEARING ON THE PROPOSED LEASE PURSUANT TO INDIANA CODE 36-7-14-25.2, AND AUTHORIZING PUBLICATION OF NOTICE OF THE PUBLIC HEARING ON JUNE 13, 2008 AND RELATED MATTERS 20 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (7) continued... Public Hearing on June 13, 2008 and related matters. C. Airport Economic Development Area (1) Filing of Resolution No. 2455 amending the Airport Economic Development Area Development Plan and setting a public hearing on Resolution No. 2455 for 10:00 a.m., June 6, 2008. Mr. Witwer noted that Resolution No. 2455 would add sixteen properties to the Acquisition List of the Airport Economic Development Area Development Plan. Fifteen of the properties are located on Grace and Ford Streets, surrounded by Oliver Industrial Park. With some potential new tenants and development in the park, these folks were asked if they were interested in selling. All of them were enthusiastic about selling. The other property is located at 604 S. Scott St. It is a property that has been on tax sale. We want to acquire it and turn it into a viable use. Mr. Witwer noted that instead of a public hearing on June 6, staff would like to hold the public hearing on June 13. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission accepted for filing Resolution No. 2455 amending the Airport Economic Development Area Development Plan and setting a public hearing on Resolution COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 2455 AMENDING THE AIRPORT ECONOMIC DEVELOPMENT AREA DEVELOPMENT PLAN AND SETTING A PUBLIC HEARING ON RESOLUTION NO. 2455 FOR 10:00 A.M., JUNE 13, Zoos 21 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... No. 2455 for 10:00 a.m., June 13, 2008. D. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. E. South Side Development Area There was no business in the South Side Development Area. F. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. G. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. H. Ratification of Service Contracts Mr. Inks noted that staff has presented for ratification a list of service contracts entered into by staff since the last meeting. Commission Role in Service Contract Staff Property Description Transaction Contractor Provided Amount Member International Harvester Acquisition Phifer Phase 1 ESA $2,850.00 Witwer Environmental & Asbestos Services, LLC testing Millennium Acquisition Meridian Title Title Search $100.00 Kolata Environmental 22 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 6. NEW BUSINESS (CONT.) H. Ratification of Services Contracts continued... Fred's Transmission Acquisition R.E. Pitts & Assoc. Appraisal $1,750.00 Schalliol Fred's Transmission Acquisition Jerome Michaels Appraisal $2,350.00 Schalliol International Harvester Acquisition R.E. Pitts & Assoc. Appraisal $2,650.00 Schalliol International Harvester Acquisition R.E. McCloskey & Assoc. Appraisal $2,000.00 Schalliol Bendix Dr. -Auto Store Acquisition Ralph Lauver Appraisal $2,500.00 Witwer Bendix Dr. -Auto Store Acquisition Jerome Michaels Appraisal 2,450.00 Witwer Bendix Dr -Restaurant. Acquisition Ralph Lauver Appraisal $2,500.00 Witwer Bendix Dr -Restaurant. Acquisition Jerome Michaels Appraisal $2,450.00 Witwer Ameritech Drive Acquisition R.E. McCloskey & Assoc. Appraisal $1,500.00 Witwer Ameritech Drive Acquisition Jerome Michaels Appraisal $1,450.00 Witwer TOTAL $2-4,~~0.00 Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission ratified the service contracts entered into by staff since May 2, 2008. 7. PROGRESS REPORTS 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is scheduled for Friday, June 6, 2008 at 10:00 a.m. Commission ratified the service contracts entered into by staff since May 2, 2008 PROGRESS REPORTS NEXT COMMISSION MEETING 23 South Bend Redevelopment Commission Regular Meeting -May 16, 2008 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Downes made a motion that the meeting be adjourned. Dr. Varner seconded the motion and the meeting was adjourned at 11: 06 a. m. ~~ .. - ~a1~'E ;;ilis~ ~ .. .. . EXECUTIVE SESSION ADJOURNMENT :. iki~i~,L ~~ames, ~Pqs ~~~~ ~ .-.~.~ ~~.~ ~ ... ~ . , May 16, 2008 The South Bend Redevelopment Commission met in Executive Session on Friday, May 16, 2008 at 9:30 a.m. The meeting was held in Room 1200 County-City Building, 227 West Jefferson, South Bend, Indiana, for the purposes specified in LC. 5-14-1.5-6.1(b)(2)(D). Commissioner's Present: Marcia Jones, President; Karl King, Vice President; Greg Downes, Secretary; Hardie Blake, David Varner. Others Present: Don Inks, Director, Economic Development, Attorney Charles Leone, Attorney Lawrence Meteiver, Bill Schalliol, Nick Witwer, Jennifer Laurent, and Attorney Richard Nussbaum. The Commission certifies that no topic was discussed other than the subject matter specified in the Public Notice. The Executive Session was adjourned at 10:00 a.m. CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT 7,,~,~ ~ T. .. ~. ~1"iGirG~.ir V~~e~. ,~L~lt. .. . ~~ ~ .... South Bend Redevelopment Commission 24