Loading...
HomeMy WebLinkAbout11-29-12 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING November 29, 2012 9:30 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Dr. David Varner, Vice President Mr. Donald Alford Sr., Secretary Mr. Greg Downes Mr. Henry Davis Mr. John Stancati Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff 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. Debrah Jennings, Property Manager Others Present: Mr. Scott Ford, Executive Director Mr. Aaron Perri, DTSB Mr. Kevin Allen, South Bend Tribune Ms. Angie McCaslin Ms. Elizabeth Maradik Mr. Conrad Damian Mr. Philip Faccenda, Barnes & Thornburg Mr. Tim Mehall, Cressy & Everett Mr. George Cressy, Cressy & Everett Ms. Kaye Trowbridge Mr. Randy Rompola, Faegre Baker Daniels Mr. Mark Peterson, WNDU-TV Mr. Tim Sexton, University of Notre Dame Mr. Richard Nussbaum, Nussbaum, Inabnit& Kaczmarek Mr. Wyatt Mick Mr. Mike Cloonan, F Cubed Ms. Kelli Stopczynski, WSBT-TV Mr. David Heckaman, Curtis Products Mr. Andrew Heckaman, Curtis Products 1 South Bend Redevelopment Commission Regular Meeting—November 29, 2012 Mr. John Heckaman, Curtis Products Ms. Mo Miller 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, November 8, 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, November 8, 2012. 3. APPROVAL OF CLAIMS 324 AIRPORT AREA Hull &Associates, Inc. 7,741.08 Ignition Park Monitoring wells, etc. Hull &Associates, Inc. 1,125.00 GWS for VRP -Area A Hull &Associates, Inc. 1,897.50 Extended General Consulting Plews Shadley Racher & Braun LLP 219.17 Oliver Plow Cost Recovery/Studebaker IDEM 4,750.93 Personnel /Costs Jerome E. Michaels, MAI 1,275.00 Commercial Appraisal Wells Fargo 400.00 Redev Special Taxing District Bond 2002 Shaffner Heaney Associates, Inc. 373,640.22 Facade Improvemnts for Lot 4 of Ignition Pk BSA LifeStructures 4,515.04 Ignition Pk Ph 1B Weaver Boos Consultants 7,213.95 Consultant Former Studebaker Museum Ken Herceg &Associates Inc 236.50 Sheridan Ave, & Lincoln Way West Design C & E Excavating, Inc. 74,508.88 Site Improvements for Lot 4 of ignition Park Boundary Survey Prop Line Railroad-Chapin Lang, Feeney &Associates, Inc. 1,118.00 St.-Taylor St. South Bend Tribune 81.11 Notice To Bidders Tri County News 34.53 Notice To Bidders Faegre Baker Daniels 7,639.87 Legal Services 420 FUND TIF DISTRICT-SBCDA GENERAL Ampco System Parking 1,611.85 225 Main St/St. Joseph St Surface Larson Danielson Construction 75,984.05 Coveleski Stadium Low's 68.32 VA Clinic CB Richard Ellis 1,192.14 Management Fee LaSalle Hotel Buxton Identifying Customers 1,750.00 Basic & Retail Matching Access Carl Walker 1,872.00 Wayne St. Garage Facade South Bend Watar Works 37.87 Commercial 325 S Lafayette Blvd South Bend Tribune 21.66 Notice to Bidders Faegre Baker Daniels 1,090.87 Legal Services 2 South Bend Redevelopment Commission Regular Meeting—November 29, 2012 3. APPROVAL OF CLAIMS (CONT.) 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT The Troyer Group 5,288.75 Facade Studies Skyway Memorial / Ph II 429 TIF FUND NORTHEAST DISTRICT Christopher B. Burke Engineering 8,550.75 So. Bend 5 Points Utility Study Faegre Baker Daniels 905.76 Legal Services 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA#1 Halle Properties, LLC 21,150.00 Right-of-Way for the Main St/Lafayette Blvd Christopher B. Burke Engineering, LLC 5,874.00 Fellows St Improvements PH II Purchase of right of way for the Main Maryann Sherman 15,000.00 St./Lafayette Blvd Conn Ireland Rd $ 611,794.80 Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Claims submitted November 29, 2012. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS A. Other Ms. Jones noted that Item 6. C. (1) is related to Item 5. A. (1). She asked that Item 6. C. (1) be moved to immediately follow Item 5. A. (1). Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission moved Item 6. C. (1)to follow Item 5. A. (1). 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. Mr. Inks noted that in March of this year staff made a report concerning the proposed use of $812,791 in Certified Tech Park funds. The Memorandum of Understanding is consistent with the proposed use that was presented at that time. Essentially the funds will be split equally between Innovation Park and Ignition Park. Both the University of Notre Dame and the City of South Bend will submit a list of projects each year. To the extent that there are projects that are eligible for fifty percent of the funding, those projects would be funded. If one side or the other has less need than the fifty percent, the other side could increase its 3 South Bend Redevelopment Commission Regular Meeting—November 29, 2012 5. OLD BUSINESS A. Other 1) continued... share in that year. But, overall, of the $5 million dollars that is anticipated to be collected, $2.5 million would be for Ignition Park and $2.5 million would be for Innovation Park. Mr. Varner asked for clarification on the potential for one side or the other getting more than fifty percent. Mr. Sexton responded that for either side to get more than its fifty percent share, both sides must agree to spend more than the $2.5 M in one of the parks. It would have to come back to the Commission for approval. Mr. Davis noted that everybody wants to see the physical development of Ignition Park. There has been conversation about the city constructing its own incubator in Ignition Park. He wondered if there should be an effort to figure out how we can really improve the transition of businesses moving from Innovation Park to Ignition Park, given that we are building a new building. How do we expand this conversation so the residents, the tax payers, and citizens actually feel like it is working for the residents of South Bend? Mr. Sexton responded that the city is interested in building a multi-disciplinary building in Ignition Park. It is intended that that be the next step for companies at Innovation Park that have gotten their research to a point of commercialization, so they would transition to Ignition Park into such a building. Mr. Davis asked Mr. Sexton to define "multi-disciplinary." Mr. Sexton responded that earlier in the week there was a newspaper article referencing F- Cubed, which is a company that has outgrown Innovation Park and is going to be temporarily housed at the old St. Joseph High School site. They have a strong desire to be at Ignition Park. They would have been a perfect tenant for multi-disciplinary building. We are going to have more and more companies like F-Cubed coming forward through Innovation Park and we want to make sure those companies have a landing spot. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved the 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. 4 South Bend Redevelopment Commission Regular Meeting—November 29, 2012 6. NEW BUSINESS C. Airport Economic Development Area 1) State Certified Tech Park Recertification Application Mr. Inks noted that when the state designated Ignition Park and Innovation Park a Certified Technology Park on January 1, 2009, it was for a period of four years. Our certification will lapse the end of 2012 unless recertified by the state. We want to submit an application for recertification. Mr. Inks noted that the University of Notre Dame has been instrumental in assisting with the collection of information for this application, primarily because thus far so much of the tech park business activity has occurred at Innovation Park. However, Ignition Park did see the first phase of infrastructure development this year, along with its first business opening, Data Realty. Investment by the University and the city in the two tech park sites has been significant over the last four years. The University of Notre Dame and Indiana University South Bend have invested $33.5 million, while South Bend has invested $22.5 million. Thirty-five small businesses are located at Innovation Park, employing 81 people with an annual payroll of $4.7 million. Two of the small businesses started at Innovation Park have graduated to the next stage of growth. Data Realty has relocated to its new facility within Ignition Park. F Cubed is making an interim move to the former St. Joseph High School and will ultimately locate at Ignition Park. Staff requests authorization to submit the Recertification Application to the State of Indiana. Mr. Varner noted that the city has spent significant funds purchasing and clearing the site at Ignition Park. He prefers the Data Realty model where ownership of the building is put in the hands of the business. He believes that makes good sense. He hopes that is the model we follow for the proposed multi-tenant, multi-use building. It doesn't increase the tax base for South Bend if the city builds and owns the buildings. He would like to see the multi-tenant building be built by a private developer or at least in partnership with a private developer. Mr. Davis agreed with Mr. Varner. He asked how helpful Senate Bill 443, approved here locally, has been as a selling point for tech companies to locate here. Mr. Inks responded that the information technology tax exemption has certainly been a helpful tool. It was used with Data Realty. He was not aware of any other conversations that staff had with those types of businesses, but other folks in the community have had conversations with companies in the information technology business and the abatement is a key part of those conversations. He expects that it will play a significant role in helping to attract those types of businesses to Ignition Park. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the State Certified Technology Park Recertification Application. 5 South Bend Redevelopment Commission Regular Meeting—November 29, 2012 6. NEW BUSINESS A. Housing 1) Subordination Agreement of mortgage with Michael E. Malinowski to Indiana University Credit Union. Mr. Inks noted that this South Bend Home Improvement Program (SBHIP) loan is being refinanced for a lower interest rate and lower monthly payments. There is no equity being taken out. As the refinancing proceeds, without subordination, we would end up in first position. We are being asked to continue our subordination to the primary lender. Mr. Varner asked if this was a loan we never intended to recover. Mrs. Trowbridge responded that we are currently in second position to this first mortgage. Mr. Malinowski is making payments and has paid off a little more than half of what the original loan was. It was a 50% grant, 50% loan. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Subordination Agreement of mortgage with Michael E. Malinowski to Indiana University Credit Union. B. South Bend Central Development Area 1) Amendment to Lease with GMS Realty, Inc. for 333 W. Western Avenue (VA clinic property) Mr. Schalliol noted that this is an Amendment to Lease between Ambulatory Care solutions and the City of South Bend Redevelopment Commission for the VA clinic property at 333 W. Western Avenue. The original lease provided for payment of a base rent of$4,000, based upon an area of the leased premises being 16,000 sq. ft. The actual square footage being used by ACS within the leased premises is 17,340 sq. ft. for a base rent of$4,335. This higher amount has been paid by ACS from the beginning of the contract but the lease needs to be amended to reflect this modified amount. Upon a motion by Mr. Varner, seconded by Mr. Alford and unanimously carried, the Commission approved the Amendment to Lease with GMS Realty, Inc. for 333 W. Western Avenue (VA Clinic Property) 2) Contract for Services with Housing Authority of South Bend for 701 E. South Street, Apt A Mr. Schalliol noted that the property at 701 E. South Street was formerly owned by the Housing Development Corporation (HDC) of South Bend and was recently transferred to the Commission as part of the disposition of several properties located near the intersection of South Street and Lincoln Way East. The tenant presently living in 701 E. South Street Apartment A has been living in the property for a number of years and would likely remain a 6 South Bend Redevelopment Commission Regular Meeting—November 29, 2012 6. NEW BUSINESS B. South Bend Central Development Area 2) continued... tenant in the property after the unit is sold. The Housing Authority previously had a similar contract with the HDC and a new contract needs to be executed with the Commission to provide Section 8 Housing Services. Upon a motion by Mr. Alford, seconded by Mr. Downes and unanimously carried, the Commission approved the Contract for Services with Housing Authority of South Bend for 701 E. South Street, Apt. A. 3) Agreement for Sale of Land for Private Development with Wightman Petrie for property located at 402 S. Lafayette Blvd. Mr. Inks asked that Item 6.B.(3) be tabled. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission tabled Item 6.B.(3). 4) Proposal from Shakespeare Lighting Design for the design services for River Lighting Project. Mr. Kain noted that Downtown South Bend, Inc. (DTSB) is leading an effort to bring more energy and vitality to the St. Joseph River that runs through the heart of downtown. Highlighting the river for the purpose of economic development and visitor attraction, as well as for recreational purposes, has been outlined in many studies, including City Plan, the official comprehensive plan for the City of South Bend. DTSB is seeking to accomplish this goal through the installation of a lighting sculpture along the river. They have solicited the expertise of Rob Shakespeare to design and install the project. Shakespeare is a professional lighting designer specializing in theater and dramatic architectural designs. With more than 200 lighting designs, his work has been seen throughout three continents on renowned theaters, resorts, skyscrapers, and some of the world's largest bridges. In July 2012 Mr. Shakespeare conducted a site visit and met with several area stakeholders delivering some preliminary concepts of a river lighting project. The attached proposal from Shakespeare Lighting Design will look at taking the concept design to a reality by creating a lighting site plan, luminaries and lamp specifications, luminaries price estimates and other special drawings or analyses deemed necessary for the project. Staff requests approval of the proposal from Shakespeare Lighting Design in the amount of $12,550 from the SBCDA TIF. 7 South Bend Redevelopment Commission Regular Meeting—November 29, 2012 6. NEW BUSINESS B. South Bend Central Development Area 4) continued... Mr. Perri said that DTSB approached Mr. Shakespeare to get a recommendation of someone in this area to do lighting design. Mr. Shakespeare offered to come to South Bend and take a look. He was overwhelmed with the possibilities. DTSB has committed $50,000 to the project and intends to do fundraising for the remainder. They have already written some grant applications and shopped the concept around among corporate investors. The concept has generated a lot of enthusiasm. Mr. Downes asked if DTSB has had any conversations with the members of the board of the Regional Museum of Art. If so, what was their reaction? Were they supportive of the concept? Mr. Perri responded that the Regional Museum Art was supportive. He met with Susan Visser. She had heard of Rob Shakespeare and they've been in correspondence ever since. One of his most recent projects was down at Indiana University Bloomington Museum of Art. Ms. Visser certainly wants to be involved in the lighting design for the downtown and for how it will be maintained. Mr. Perri has also discussed the project with Century Center. Mr. Varner has seen the sculpture in front of the art museum in Bloomington. He noted that art means different things to different people. He suggested soliciting the opinions of those living or operating businesses nearby who will be looking at it most. He was also concerned about the long term maintenance costs. Mr. Perri responded that Dave Matthews, developer of both the East Race Townhomes and the River Race Townhomes, was among the stakeholders that met with Mr. Shakespeare. As to the maintenance costs, they do intend to take that into consideration. Mr. Davis asked where else Mr. Shakespeare has done work. Mr. Perri said he could not name the places right now, but would be happy to provide Mr. Davis with Mr. Shakespeare's resume. Mr. Davis was interested in the approach to fundraising that would be used. Mr. Perri responded that we won't know the total cost of the project until after this phase II design work and cost estimating is done, but a very rough estimate is that it would cost between $300,000 and $500,000. Ms. Jones and Mr. Alford were also concerned that neighbors of the proposed lighting be included in the decision making. Mr. Perri responded that they have already been at the table. 8 South Bend Redevelopment Commission Regular Meeting—November 29, 2012 6. NEW BUSINESS B. South Bend Central Development Area 4) continued... Mr. Downes said he was very excited about the prospect of this project. There have been conversations about this idea for a long time. He commended Mr. Perri for carrying it forward. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the proposal from Shakespeare Lighting Design for design services for River Lighting Project. C. Airport Economic Development Area 1) Letter of Intent from Curtis Products to Lease Bosch site. Mr. Inks noted that for well over a year he has been showing the Bosch facility, wondering what we might have to do with the site when Bosch leaves to protect and maintain it, all the while hoping that would never come to pass. Today Mr. Inks is very pleased to announce that we have a Letter of Intent that has been executed by Curtis Products to lease the entire Bosch site with an option to purchase it. Curtis Products is a local, family-owned business started in 1959 that operates out of 180,000 square feet in 4 buildings located just southeast of the downtown in the Monroe Park Industrial Park. They have over three hundred employees. A summary of the lease terms are: Curtis Products would have a twelve year lease with the first two years at no rent and subsequent years at market rates or slightly above; Curtis Products would have the option to buy the site for $1,350,000 at any time during the first two years. The Letter of Intent also provides for the Redevelopment Commission to provide $250,000 for improvements to the building to be determined in conjunction with Curtis Products. The Commission is being asked to approve the terms of this Letter of Intent and authorize proceeding with the preparation of the lease for the site. Mr. Inks noted that Bosch will be returning possession of the site to Redevelopment at the end of this year. The target date for Curtis Products to take possession is May 1, 2013. Therefore, there will be an interim period where Redevelopment will be responsible for the site. At the next Commission meeting he expects to have a proposal for property management services. Our annual holding costs for the site have been estimated at $650,000. Almost $200,000 of that would be property taxes. There will be other significant costs related to security, maintenance and utilities. While there is no rent in the first two years of this particular lease, these holding costs will be avoided, except during the interim period in early 2013. The average appraised values for the site were $1,967,000 to purchase and $1.63 per sq. ft. to lease. The option price of$1,300,000 represents a savings for Curtis Products of $617,000 or just under one year of holding costs for the Commission. 9 South Bend Redevelopment Commission Regular Meeting—November 29, 2012 6. NEW BUSINESS C. Airport Economic Development Area 1) continued... Mr. Varner asked what Curtis Products does. Mr. David Heckaman responded that they fabricate steel tubing and other things. The tubing they sell to the agricultural market. Mr. Davis asked if there had been any conversations about filling the building that Curtis Products will be leaving. Mr. Inks responded that during the negotiations, staff recognized that those buildings would need to be addressed. That is why we came up with the two years of no rent, giving Curtis Products an opportunity to market those properties for lease or sale. Certainly as businesses approach us about space in the community, we are making them aware of those buildings to the extent that we supply potential tenants to lease or buy. At this point Curtis Products is looking to market those. Staff requests approval of the lease terms and authorization to prepare a lease with an option to purchase. Mr. David Heckaman noted that they have not started to market the property yet, but they have had a couple of people look at it over the past year, since they've been in negotiations about the Bosch building. There seems to be a little bit of interest. They have four or five buildings, which could be marketed individually. He thought it doubtful that anyone would want the whole campus. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Letter of Intent from Curtis Products to lease the Bosch site and authorized staff to proceed with preparation of a lease with an option to purchase. 2) Resolution No. 3109 regarding the disposition of certain personal property and matters related thereto. (F Cubed) Mr. Inks noted that Resolution No. 3109 authorizes the disposition process for the equipment purchased in accordance with the terms of the Memorandum of Understanding (MOU) with F Cubed, approved by the Redevelopment Commission on November 8, 2012. 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 there is a multi-tenant facility available. In the interim they are locating in the former St. Joseph High School. As part of our efforts to retain the company in South Bend, and eventually locate them in Ignition Park, the MOU commits the Redevelopment Commission to acquiring certain scientific equipment and providing an opportunity for F Cubed to lease that equipment. The cost of the equipment as established by the Commission at the November 8 meeting is not to exceed $138,000. The disposition process will include the advertising of an Offering Sheet which sets the price based on the not-to-exceed amount that was established by the Commission of$138,000. It also requires any prospective purchaser to locate in Ignition Park and use the equipment to 10 South Bend Redevelopment Commission Regular Meeting—November 29, 2012 6. NEW BUSINESS C. Airport Economic Development Area 2) continued... create at least 13 new jobs related to the technology or biotechnology areas, and make new capital investment of at least $2.6 million in the Airport Economic Development Area. Since the disposition process is expected to run into late January or early February of 2013, a Temporary Use Agreement is being proposed so F Cubed may take possession and use of the equipment while the disposition process is being completed. F Cubed has an immediate need for the equipment and is the anticipated end user in accordance with the MOU. Staff recommends approval of Resolution No. 3109. Mr. Inks noted that this is the first time that the Redevelopment Commission has disposed of personal property. The requirements under state law seem to be less clear in this area than for real property. Mr. Randy Rompola of Faegre Baker Daniels noted that the disposition process of personal property is not specified in the statutes. There is a process in the general Indiana code for personal property disposition, but it says specifically it doesn't apply to Redevelopment Commissions. In the powers that are generally available to Redevelopment Commissions it says Commissions may acquire and dispose of personal property, but there is never any indication later in the statute of how to dispose of personal property. What Faegre Baker Daniels is suggesting is that the Commission follow as nearly as possible the process for real property disposition, which is specified very clearly in this statute. Faegre Baker Daniels has been involved in a number of projects that have had both personal and real property. They've always combined the two and used the real property disposition process. This is one of those unique cases where it is only personal property. Mr. Varner asked the reason Redevelopment needed to acquire the personal property. Mr. Rompola responded that the State of Illinois can simply write a check to a company which can use the cash. Indiana statute doesn't allow that. They allow you to invest in local public improvements. Equipment can be classified as a public improvement because it provides the economic development opportunity for that area. As such, the Commission doesn't have the ability to hand the money over to the private company for them to buy the equipment. The Commission must acquire the equipment and use the disposition process to convey it to the company. Mr. Downes noted that the MOU states that if F Cubed does not live up to its agreement to create jobs and make the capital investment to move into Ignition Park, there is a clawback requirement that they would have to repay the Redevelopment Commission 150% of the equipment cost. Mr. Downes asked if that requirement is included in Resolution No. 3109. Mr. Rompola responded that it is not. All that Resolution No. 3109 does is offer the equipment for disposition. At some point F Cubed will come back into the picture. That 11 South Bend Redevelopment Commission Regular Meeting—November 29, 2012 6. NEW BUSINESS C. Airport Economic Development Area 2) continued... requirement is part of the MOU. The equipment lease will provide for them a seven year lease. The Commission will continue to (technically) own the equipment. The disposition is by lease, not by sale, so if they don't live up to their promises, the Commission has the ability to reclaim the equipment and have F Cubed pay the 150%. Mr. Downes said he wanted to make the point that this arrangement is virtually risk free to the city. Mr. Davis asked the meaning of the term "local public improvement." Mr. Rompola responded that the term is not well defined in the statute, which is to the benefit of the Commission. The Commission has some flexibility to decide what"improvements" they can offer that will lead to capital investment and job creation. Upon a motion a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3109 regarding the disposition of certain personal property and matters related thereto. 3) Resolution No. 3106 approving the Fair Market Value Property in the Airport Economic Development Area (1202 S. Lafayette Blvd.) Mr. Relos noted that, unlike the previous personal property, this is the standard way to begin the disposition process on real property. This property used to be called the old International Harvester Building, or after that Tool Doctor. The building has since been demolished. It is offered as a clear site. Upon a motion by by Mr. Downes, seconded by Mr. Varner, and unanimously carried, the Commission approved Resolution No. 3106 approving the Fair Market Value Property in the Airport Economic Development Area (1202 S. Lafayette Blvd.) 4) Approval of Bid Specifications and Design Considerations for property located at 1202 S. Lafayette Blvd. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Bid Specifications and Design Considerations for property located at 1202 S. Lafayette Blvd. 5) Authorization to publish Notice of Intended Disposition of Property with publication dates of December 7 and December 14, 2012 and Opening of Bids at 9:30 a.m., January 10, 2013. (1202 S. Lafayette Blvd.) 12 South Bend Redevelopment Commission Regular Meeting—November 29, 2012 6. NEW BUSINESS C. Airport Economic 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 December 7 and December 14, 2012 and Opening of Bids at 9:30 a.m., January 10, 2013. (1202 S. Lafayette Blvd.) D. West Washington-Chapin Development Area There was no business in the West Washington-Chapin Development Area. E. South Side Development Area 1) Resolution No. 3098 approving and authorizing the execution of an amendment to the addendum to the Master Agency Agreement with the Board of Public Works (Main- Lafayette Connector Design Project-Supplement #7) Mr. Inks asked that Item 6.E.(1) be tabled. Upon a motion by Mr.Downes, seconded by Mr. Varner and unanimously carried, the Commission tabled Item 6.E.(1). F. Northeast Neighborhood Development Area 1) Resolution No. 3108 approving and authorizing the execution of an Addendum to the Master Agency Agreement with the Board of Public Works (Amendment to demolition of homes within AEP electric pole easement by realigned SR23) Ms. Maradik noted that the Commission previously approved funding for the demolition of three homes on Corby for the SR 23 realignment project which is currently underway. As part of this project, high tension electric poles were planned along the south side of the street through the new intersection that will be created instead of the current 5-points intersection. However, city's Department of Public Works has been working with AEP officials over the past several months to determine an alternate route so that the land immediately adjacent to the realigned SR23 is clear of these large overhead electric cables and maintains its development potential. As part of this project Commissioners approved moving forward with the demolition of three (3) homes located at 1128 Corby, 1225 Corby, and 1229 Corby at its October 11, 2012 At the November 20, 2012 Board of Public Works meeting quotes for the demolition of these properties were opened. The Commission previously approved $30,000 for the demolition of these properties; however in order to award the project to the company with the lowest quote 13 South Bend Redevelopment Commission Regular Meeting—November 29, 2012 6. NEW BUSINESS F. Northeast Neighborhood Development Area 1) continued... additional funding in the amount of$655 is required—bringing the total funding amount to $30,655. Staff asks for approval of the additional $655 in additional expenditures. Upon a motion by Mr. Downes, seconded by Mr. Varner and carried unanimously carried, the Commission approved Resolution No. 3108 approving and authorizing the execution of an Addendum to the Master Agency Agreement with the Board of Public Works (Amendment to demolition of homes within AEP electric pole easement by realigned SR23) 2) Resolution No. 3107 authorizing the transfer of real property to the Northeast Neighborhood Revitalization Organization (1028 and 1104 N. Eddy) Mr. Schalliol noted that Resolution No. 3107 will transfer two properties owned by the Redevelopment Commission to the Northeast Neighborhood Revitalization Organization (NNRO). The properties, located at 1028 and 1104 N. Eddy, were acquired by the Redevelopment Commission as part of a six property purchase from the Housing Authority of South Bend in 2010 to help facilitate the Triangle Neighborhood project. The other four properties acquired from the Housing Authority were transferred previously to the NNRO during the platting process for the Northeast Triangle. The transfer of these two properties were to have been part of the prior transfer, but were inadvertently omitted from transfer resolution. Mr. Davis asked whether the Triangle Neighborhood, originally envisioned as mixed income, is still envisioned as mixed income. Or are the lower income people now being relocated to other areas of the city? Mr. Schalliol responded that the answer to that is twofold. First, the two properties are being transferred to the NNRO which will then transfer them to Notre Dame in exchange for property that Notre Dame has previously transferred to the NNRO. It's part of a long chain property transfers. These two properties along Eddy St. are not part of the 70/30 mixed income commitment in the Northeast Triangle. That commitment is firm. Ms. Jones noted that the Triangle Neighborhood is defined as the east side of Georgiana over to and through Duey St. So 1028 and 1104 N. Eddy are not within the Northeast Triangle. Upon a motion by Mr. Alford, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3107 authorizing the transfer of real property to the Northeast Neighborhood Revitalization Organization (1028 and 1104 N. Eddy) 14 South Bend Redevelopment Commission Regular Meeting—November 29, 2012 6. NEW BUSINESS G. Douglas Road Development Area There was no business in the Douglas Road Development Area. H. 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 the November 8, 2012 meeting. 7. PROGRESS REPORTS Mr. Inks noted that its November 8, 2012 meeting staff sought approval from the Commission to do a minor subdivision of the Blackthorn Corporate Office Park for a medical office development. It's a 5400 square foot, almost $2 million project. It's a medical use dialysis operation, very similar to Nephrology, which is already located in the Blackthorn Corporate Office Park. The buyer of that property is a Fortune 200 company. In reading the covenants and restrictions for the office park, they wanted clarification about their particular use being allowed. The definition for Corporate Office space is fairly broad and doesn't specifically reference medical use. They have asked for a letter from the Redevelopment Commission to confirm that their particular use is a permitted use, and designated for this particular site. The various sites in Blackthorn are designated as either Corporate Office or Medical or Educational. The site being looked at is a corporate office site located immediately west of Blue Heron,just across the golf course. A letter has been drafted which says that the Commission finds the use consistent with the uses allowed under the Blackthorn Corporate Park Declaration of Protective Covenants and Restrictions and the proposed use of the medical office building providing renal care is, therefore, allowed. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission authorized the letter described to be sent to Rick Doolittle at CE Capital Group concerning the potential renal care development at Blackthorn Corporate Office Park. 8. NEXT COMMISSION MEETING The Next Regular Meeting of the Redevelopment Commission is scheduled for 9:30 a.m., December 13, 2012. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Downes made a motion that the meeting be adjourned. Mr. Varner seconded. The meeting was adjourned at 10:15 a.m. r. �. 15