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HomeMy WebLinkAboutRedevelopment Commission Minutes 3.25.21 South Be n d Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, IN 46601 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING March 25, 2021 9:30 a.m. https://tinyurl.com/RDC032521 Presiding: Marcia Jones, President South Bend, Indiana The meeting was called to order at 9:33 a.m. 1. ROLL CALL Members Present: Marcia Jones, President Don Inks, Vice-President Quentin Phillips, Secretary Troy Warner, Commissioner Eli Wax, Commissioner Leslie Wesley, Commissioner Members Absent: Legal Counsel: Sandra Kennedy, Esq. Redevelopment Staff: David Relos, RDC Staff Mary Brazinsky, Board Secretary Others Present: Daniel Buckenmeyer Santiago Garces Amanda Pietsch Tim Corcoran Michael Divita Amy Paul Charlotte Brach Kyle Silveus Zach Hurst Jordan Gathers Conrad Damian Mark Peterson DCI DCI DCI DCI DCI DCI Engineering Engineering Engineering Mayor’s Office Resident WNDU South Bend Redevelopment Commission Regular Meeting – March 25, 2021 2. Approval of Minutes • Approval of Minutes of the Regular Meeting of Thursday, March 11, 2021 Upon a motion by Vice-President Inks, seconded by Secretary Phillips, the motion carried unanimously, the Commission approved the minutes of the regular meeting of Thursday, March 11, 2021. 3. Approval of Claims • Claims Submitted for March 15, March 16, and March 23, 2021 Commissioner Warner asked if this is the last of the concrete bills for the high wall cast at Commerce Center. Mr. Hurst replied that this is the last or second to the last of the claims. In the month we should be processing a completion affidavit through the Board of Public Works. Commissioner Warner asked if the developer is in compliance with the agreement with the city. Mr. Buckenmeyer states that he believes that is true. Grocery and pharmacy requirements are in place, but the city has received no details to date. Upon a motion by Vice-President Inks, seconded by Commissioner Warner, the motion carried unanimously, the Commission approved the claims for March 15, March 16 and March 23, 2021 submitted on Thursday, March 25, 2021. 4. Old Business 5. New Business A. River West Development Area 1. MOU (Valerie Loew) Mr. Relos presented MOU (Valerie Loew). This is a MOU with a local artist Valerie Loew that contacted the Department of Community Investment regarding the terra cotta pieces of the Fat Daddy’s building. The city was able to save the decorative pieces prior to demolition. Ms. Loew is requesting to make some molds of the pieces. She is a glass artist and is requesting to borrow the pieces returning them by the end of June 2021. Commission approval is requested. Upon a motion by Commissioner Warner, seconded by Commissioner Wax, the motion carried with Don Inks abstaining, the Commission approved MOU (Valerie Loew) submitted on Thursday, March 25, 2021. South Bend Redevelopment Commission Regular Meeting – March 25, 2021 2. Development Agreement (Sibley Machine and Foundry Corp) Mr. Buckenmeyer presented Development Agreement (Sibley Machine and Foundry Corp). We are asking for $250k out of the River West TIF. Our normal agreements are backed by ROI and private investment. This agreement is unique as it is it integrates both direct and indirect elements of both private investment by the Sibley team and indirect impact on job creation. The project works with small business development in South Bend as the home of the Scaling Up! Scaling Up! is a result of working for 3 years to develop a technical service grant from the EDA. The EDA performed a deep dive in South Bend for supporting small business adventures. Our key participants (or makers) produce hardware, handbags, and hot sauce. Council approved 250k in the 2021 budget for programming. The program launched in February 2021 with 15 available spots with over 60 applications submitted. Our consultant picked the 15 most promising businesses. The makers will complete a 3-month educational program led by 37 Oaks out of Chicago starting tonight. At the end of the 3-month period the 250K amount will give them subsidized space where they can apply their trade and let them build the businesses. The businesses were already established but looking to expand. The Sibley building will designate 9,000 square feet, putting in works areas, bathrooms and cleaning it up. A courtyard will be available to them. Commission approval is requested. Commissioner Wesley asked how much investment has previously put into this building and can you tell me more about 37 Oaks. Mr. Buckenmeyer responded that this agreement is the first time we are investing in the Sibley Building. Thirty-Seven Oaks is a consulting group that focuses on education for business owners that already have a product by working further on pricing, internet sales and finance. Terrand Smith will be working with our 15 makers on furthering their knowledge on branding, distribution, and commerce. We hope to continue this movement in South Bend collaborating with Incremental Development and other resources in the future. Commissioner Warner stated that he heard Terrand Smith speak in 2019 and she described this as an entrepreneurship university creating small businesses. This is really for small businesses looking to mass produce and scale their businesses. This helps people to become their own boss. I am glad that the Council was able to approve the budget for this project. Commissioner Wax asked if there was a way to provide ROI at this stage. Mr. Buckenmeyer stated it is hard to do at this point. This is not a standard agreement where we can get specific job creation based on business model. Sibley is putting six figures into the building to make it ready for these businesses. Mr. Garces explained that when we look at this there are two areas in which we will look at return. One is if the program is successful, we expect to see job creation from these small businesses. Small businesses are the leaders in job creation in the United States. We have to estimate and evaluate during this program. Out of the 15 businesses they will add 2 to 3 employees per company. South Bend Redevelopment Commission Regular Meeting – March 25, 2021 The other source of ROI is by activating the Sibley space we will start generating rent and tax revenues to help the building become sustainable. We have been working hard at bringing buildings that have been vacant in neighborhoods. The Incremental Development model helps us to invest so the buildings become productive again. The rent dollars will help the owners to reinvest into their buildings again. We are excited to see this and evaluate the program at a later date. Conrad Damian, Resident noted that the city has had many vacant/empty buildings. Now with buildings like Vested Interest, LangLab and the Sibley project we have all different levels of entrepreneurship. The Volls have been to neighborhood meetings engaging with local residents and small business needs. We are excited of the possibilities and the new companies. Upon a motion by Commissioner Warner, seconded by Commissioner Wax, the motion carried the Commission unanimously approved Development Agreement (Sibley Machine and Foundry Corp) submitted on Thursday, March 25, 2021. 3. Budget Request (Lincolnway West Streetscape Olive St) Mr. Divita presented Budget Request (Lincolnway West Streetscape Olive St). Staff requests approval of a project budget of $2,100,000 from the River West Development Area for construction and related costs for Lincolnway West streetscape improvements at Olive Street. As part of its implementation of the West Side Main Streets Revitalization Plan, the City of South Bend proposes to make further streetscape improvements to Lincolnway West to create an environment more inviting to commercial and residential investment. The primary project area will be the two blocks of Lincolnway West between Fremont and Elmer Streets, where paving, curbs, sidewalks, and driveway approaches will be replaced. Protected bike lanes, street trees, and decorative lighting will be added. Additionally, decorative roadway lighting will be installed on Lincolnway West between Elmer and O’Brien Streets. The Board of Public Works will open bids on the project in May. Construction is anticipated to begin in June for completion in the fall. Commission approval is requested. Commissioner Warner asked if the District Council has been notified. Mr. Divita responded that yes, they have been working with him. Upon a motion by Sectary Phillips, seconded by Commissioner Warner, the motion carried unanimously, the Commission approved Budget Request (Lincolnway West Streetscape Olive St) submitted on Thursday, March 25, 2021. South Bend Redevelopment Commission Regular Meeting – March 25, 2021 B.River East Development Area 1.Budget Request (Debt Service Reserve Budget) Ms. Pietsch presented a Budget Request (Debt Service Reserve Budget). This request is to bring the debt service reserve compliant on the 2017 Eddy Street Commons Bond. There was an error by the Bond Counsel at closing, the DSR was not calculated correctly. This request is for $210,000 that will go into the reserve and fill our requirements. Commission approval is requested. Upon a motion by Commissioner Warner, seconded by Vice-President Inks, the motion carried unanimously, the Commission approved Budget Request (Debt Service Reserve Budget) submitted on Thursday, March 25, 2021. 6.Progress Reports A.Tax Abatement 1.Mr. Buckenmeyer noted that Council unanimously approved both a personal and real property tax abatements for Claey’s candy. They will be moving their business from where they have been since 1941 at 525 S Taylor to a new facility at Nimtz (5-acre parcel) with access at Nimtz and the tollway. It will take approximately 1 to 2 years to complete this project. 2.There are a lot of tax abatements in the works coming soon. B.Common Council 1.Commissioner Warner thanked Mr. Buckenmeyer and the team for the work on the Claey’s tax abatement. The increased revenue is very exciting for them. 2.There are a lot of good ideas that can come out of 525 S. Taylor Street in the future. 3.Everyone is trying to build and grow. Lumber and steel prices are going through the roof and they are in need for workers and bidder for these projects. The future looks bright. 4.I encourage people to look at the 37 Oaks website as there are great testimonials. C.Other 1.Mr. Buckenmeyer stated that the Building Department has reported YTD is out pacing the previous year and there is a lot of activity in South Bend. 7.Next Commission Meeting: Thursday, April 8, 2021, 9:30 a.m. 8.Adjournment Thursday, March 25, 2021, 10:24 a.m. Quentin Phillips, Secretary Donald Inks, Vice-President South Bend Redevelopment Commission Regular Meeting – March 25, 2021