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HomeMy WebLinkAbout06-13-08 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING June 13, 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. Members Absent: 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. Jeff Gibney, Executive Director Mr. Tom Price, Mayor's Office Ms. Allison Sell, Baker & Daniels Mr. Richard Nussbaum, Sopko, Nussbaum & Inabnit Mr. Jitin Kain, Downtown South Bend Mr. Marco Mariani,Downtown South Bend Ms. Jamie Loo, South Bend Tribune Ms. Rita Kopala Ms. Marybeth Saunders Ms. Kathy Reddy White Ms. Vivian Sallie, Century Center Ms. Pat Meller Ms. Amber Findley Mr. T.J. Findley Ms. Deocelina Orena Mr. Ray Krol Ms. Amy Hill Mr. Kurt Brown, Century Center Ms. Glenda Lamont Mr. Frank Perri, Holladay Corp. Mr. Paul Phair, Holladay Corp. South Bend Redevelopment Commission Special Meeting -June 13, 2008 1. ROLL CALL (CONT.) 2. APPROVAL OF CLAIMS Ms. Mary LeBold Mr. Carlos Alvarez Ms. Naomi Alvarez Ms. Diane DeWeyer Mr. Paulo Alvarez Mr. Larry Piser Mr. Ray Niedbala Ms. MaryAnn Manuszak Ms. Susan Visser, South Bend Regional Museum of Art Mr. John Stratigos, Barnaby's Redevelopment Commission Claims submitted June 13, 2008 for approval. 324 AIRPORT AEDA DHA Tri County News The Troyer Group Ken Herceg & Associates, Inc. South Bend Tribune 549.00 Minor Subdivision Eckley-Lahey Site 54.90 Western Ave -Olive to Walnut 31,722.30 SB-Western Ave. Imp-Walnut St. 2,351.04 Sheridan Ave & LWW 87.28 Brendix Dr /Voorde Dr. Intersection Improvements 420 FUND TIF DISTRICT-SBCDA GENERAL Century Center 480.00 East Bank Plan Wightman Petrie 3,216.00 Gates Block Survey Indiana Michigan Power 222.02 LaSalle Hote1237 N Michigan St. 428 FUND AIRPORT 2003 BOND Tri County News SBD Reprographics South Bend Tribune 619 BLACKTHORN GOLF COURSE Meadowbrook Golf Group, Inc. 99.54 Brendix Dr /Voorde Dr. Intersection Improvements 199.94 Brendix Dr /Voorde Dr. Intersection Improvements 95.16 Brendix Dr /Voorde Dr. Intersection Improvements 8,000.00 Management Fee $ 47,077.18 2 South Bend Redevelopment Commission Special Meeting -June 13, 2008 2. APPROVAL OF CLAIMS (CONT.) Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved the Claims submitted June 13, 2008, and ordered checks to be released. 3. NEW BUSINESS A. Public Hearing (1) Public Hearing on Resolution No. 2455 amending the Airport Economic Development Area Development Plan. (Adding properties to the Acquisition List, Oliver Industrial Park area) Mr. Inks noted that the Public Hearing file for Resolution No. 2455 is complete, containing: (1) A copy of Resolution No. 2455; (2) A copy of the Notice of Hearing; (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 30, 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 30, 2008; (5) A Statement from Nicholas Witwer that on May 30 property owners and registered neighborhood associations were sent notice of the hearing; (6) There were no written remonstrances received as of 10:00 a.m., June 13, 2008. Mr. Witwer noted that Resolution No. 2455 adds sixteen properties to the Acquisition List of the Airport Economic Development Area. Fifteen of those properties are on Grace, Arnold and Ford Streets, surrounded by Oliver Industrial Park. The other property COMMISSION APPROVED THE CLAIMS SUBMITTED JUNE 13, 2008, AND ORDERED THE CHECKS TO BE RELEASED South Bend Redevelopment Commission Special Meeting -June 13, 2008 3. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... is located at 604 S. Scott Street. That property has been unused for some time and needs to be redeveloped to a viable use. Mr. Inks noted that the Airport Economic Development Area cannot use the power of eminent domain for acquisition. These acquisitions would all be voluntary acquisitions. Staff met with the property owners about their interest in selling to get away from the industrial environment. Everyone we have talked to seemed interested in being bought out, but not necessarily now. Staff will work with the owners to accommodate their wishes. Ms. Jones opened the public hearing on PusLic HEARING oN RESOLUTION No. 2455 Resolution No. 2455 for whoever wished to be heard. RAY KROL: On behalf of my mother who lives on Grace St. She has lived in her home for sixty years. She is 95 years old and wants to spend the rest of her days on Grace St. The family is not opposed to the economic development plan, but wondered how the proceeding would go. What kind of consideration is given to a resident that might be in that position? MR. INKS: These would all be voluntary acquisitions. If you want to sell, we maybe able to come up with a document that provided an opportunity for your mother to remain in the house; or we could just wait and acquire at a later date. 4 South Bend Redevelopment Commission Special Meeting -June 13, 2008 3. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... MR. KROL: A lot of us are not certain as to a timetable for all this to take place. MR. INKS: It would typically occur over probably the next six or nine months. Our acquisition process calls for us to obtain two independent appraisals of the property. The Commission would set an offering price in a public meeting, based on the average of those two appraisals. That price would be presented to you as an offer on the property for your acceptance or counter offer. MR. KROL: What then? Each household negotiates with the city on the settlement of the property? MR. INKS: That's right. MR. KROL: So, beyond that nine month period, there isn't a deadline out there as far as when the city would take ownership? MR. INKS: Well, each one would be handled individually, so, depending on how quickly we could get appraisals and get offers out to folks, and they accept, it could be within six months. Then, again, in your case, these are all voluntary acquisitions, so the timing is really up to you. These would remain on the city's acquisition list indefinitely to provide relief from the surrounding development that is planned for the Oliver Industrial Park. MR. KROL: So, are you saying for the South Bend Redevelopment Commission Special Meeting -June 13, 2008 3. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... property owners that they can delay agreeing to sell? MR. INKS: Absolutely. MR. KROL: Sothis isn't a situation where you need to buy all the properties or none? MR. INKS: We're going to look at buying them over time, and that time will be dependent on people's willingness to sell the property. MARYANN MANUSZAK: 1117 Grace. Once we did decide to sell and made the deal, how long would we have before we move out. MR. WITWER: We could set a closing date whenever it would be convenient for you. MARY LEBOLD: 1109 Grace. You said six to nine months? We were at a meeting a couple of weeks ago and they said two to four months. MR. WITWER: It could be as short as two months. We can't really get it under two months. Ms. Jones asked if there was anyone else who wished to be heard regarding Resolution No. 2455. There was no one else who wished to speak Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. 6 South Bend Redevelopment Commission Special Meeting -June 13, 2008 3. NEW BUSINESS (CONT.) A. Public Hearing (2) Commission approval requested for Resolution No. 2455. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2455 amending the Airport Economic Development Area Development Plan. (Adding properties to the Acquisition List, Oliver Industrial Park area) (3) Public Hearing on Resolution No. 2459 authorizing the execution of a Second Addendum to Lease for certain public improvements on behalf of the City of South Bend, Indiana, and regarding other related matters. (Century Center improvements) Mr. Inks noted that Resolution No. 2459 is related to improvements at Century Center. The improvements would include major repairs and replacements for Century Center as well as enhancements to the building, grounds and streetscape, should there be sufficient TIF revenue to participate in those projects. Vivian Sallie, Present of the Century Center Board of Directors, noted that Century Center has been in existence for almost thirty years. It needs major repairs and capital improvements, as well as renovations. Kurt Brown, General Manager of Century Center, noted that the core systems of the building are wearing out. With the help of the Hotel Motel Tax Board of St. Joseph COMMISSION APPROVED RESOLUTION NO. 2455 AMENDING THE AIRPORT ECONOMIC DEVELOPMENT AREA DEVELOPMENT PLAN. (ADDING PROPERTIES TO THE ACQUISITION LIST, OLIVER INDUSTRIAL PARK AREA 7 South Bend Redevelopment Commission Special Meeting -June 13, 2008 3. NEW BUSINESS (CONT.) A. Public Hearing (3) continued... County a couple of major repairs are currently underway: replacing boilers and the skylight film project, which will help keep the 1,500 skylights in the building in tact should they shatter. Other projects that this bond will fund are: repairs to island park, replacing the fire alarm system, replacing the security system, replacing the chillers, and renovations to the restrooms. Susan Visser, Director of the South Bend Regional Museum of Art, noted that they would also like enhancements beyond replacement of core systems: reconfiguring the interior space to better accommodate foot traffic through the building, and construction of park-like landscaping around the building, including a lane bump-out into the street Allison Sell, Baker & Daniels, described the actions the Commission is being asked to take today. Century Center has an existing Lease related to a prior financing. Resolution No. 2459 approves a Second Addendum to that Lease for these additional improvements. Resolution No. 2459 states that the annual Lease payment will not exceed $1,109,000 per year, beginning the date the project is completed or April 15, 2009, whichever date is later. Mr. Inks noted that the $1,109,000 lease payment is large enough to include an allocation of TIF if it is determined that there is sufficient TIF to put toward the project. The next step for the Commission would be South Bend Redevelopment Commission Special Meeting -June 13, 2008 3. NEW BUSINESS (CONT.) A. Public Hearing (3) continued... on June 25 when the Commission will be asked to make a pledge of TIF revenues for the project. The Commission is still awaiting the numbers from the city's consultant, Umbaugh, on the estimated TIF revenues, taking into account the recently passed legislation. We are hopeful of having that information before June 25 so we can assess whether there will be sufficient TIF revenues and make a pledge of those revenues on the 25th. In any event, Mr. Inks noted that, as is typical with these types of leases at this stage of the financing, they are estimated high. When the final revenues are known, whether TIF can participate and at what level, when the bonds are sold and we know the interest rate, then we would bring back an amended lease amount lower than has been approved this morning. Mr. King noted that even if there are no TIF funds available, the Commission would still be going forward with this bond because the Hotel Motel Tax Board, at its meeting on January 4, pledged an annual $600,000 towards this. If there are no TIF funds available, we would reduce the lease amount to that and still go forward with an amount that could be paid for by the Hotel Motel Tax Board commitment, which would be sufficient to cover the major repair and replacement items. Unfortunately it would not generate enough to pay for the enhancements. Ms. Sell noted that the Public Hearing file is 9 South Bend Redevelopment Commission Special Meeting -June 13, 2008 3. NEW BUSINESS (CONT.) A. Public Hearing (3) continued... complete, containing the proofs of publication from the South Bend Tribune and Tri-County News that the Notice of Hearing was published in those newspapers on May 23, 2008. Ms. Jones opened the Public Hearing on PusLic HEARING oN RESOLUTION No. 2459 Resolution No. 2459 for whoever wished to speak. MARYBETH SAUNDERS: I am an avid lover of the arts and a promoter of events here in town. I find that the museum truly is a gem. It's a vibrant museum from classes to everything, but I can't tell you how many people drive by and have no idea it's there. So anything that we can do to make sure that this museum is highlighted by any kind of enhancements, I thing are an essential item for our downtown. KATHY REDDY WHITE: I run the art gallery just down the street, on the East Bank. I just spent, seems like, about eighty years working on the arts in South Bend. I think that this is just really pivotal to get us moving again. We do need visibility, because we've got everything, we just have to show it. So I totally support it. Ms. Jones asked if there was anyone else who wished to speak for or against Resolution No. 2459. There was no one. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. 10 South Bend Redevelopment Commission Special Meeting -June 13, 2008 3. NEW BUSINESS (CONT.) A. Public Hearing (4) Commission approval requested for Resolution No. 2459. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved Resolution No. 2459 authorizing the execution of a Second Addendum to Lease for certain public improvements on behalf of the City of South Bend, Indiana, and regarding other related matters. (Century Center improvements) B. South Bend Central Development Area (1) Commission approval requested for Resolution No. 2458 designating and declaring an amendment to the Development Plan for the South Bend Central Development Area. (Adding East Bank Village Master Plan) Jitin Kain noted that the South Bend Central Development Area contains three sub-areas, one of which is the East Bank Area. There has been considerable planning going on in the East Bank among residents and business owners, under the direction of JJR, to develop this conceptual plan for the East Bank, and participants would like it incorporated into the South Bend Central Development Area Development Plan. Mr. Kain noted that if the Declaratory Resolution is approved today, the next step would be to take it to the Area Plan Commission on June 17 followed by consideration by the South Bend Common Council on June 23, after which notice will COMMISSION APPROVED RESOLUTION NO. 2459 AUTHORIZING THE EXECUTION OF A SECOND ADDENDUM TO LEASE FOR CERTAIN PUBLIC IMPROVEMENTS ON BEHALF OF THE CITY OF SOUTH BEND, INDIANA, AND REGARDING OTHER RELATED MATTERS. (CENTURY CENTER IMPROVEMENTS 11 South Bend Redevelopment Commission Special Meeting -June 13, 2008 3. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... be made of a public hearing to be held at the June 18 Redevelopment Commission meeting. Paul Phair, Holladay Corporation, noted that the planning process in the East Bank was initiated because there has not been much private investment in the East Bank recently. The potential of the area is great, with the river, the east raceway, Howard Park and Seitz Park, and the Howard Park ice rink as amenities. There are several infill and brownfield sites that are primed for private development. There hasn't been a master plan for the area that took into consideration the market. This plan defines a market based approach. The plan anticipates two phases: from the river to Hill St., LaSalle to Jefferson and the other from the river to Eddy, Jefferson to the Sample St. bridge. Phase I does include Howard Park, a central and critical amenity. Mr. Phair described the process JJR used, meeting with key stakeholder groups, soliciting information about what people liked and didn't like about the East Bank as it is. Then they held a charrette. That really sparked good discussion. The final plan is a hybrid of the three concepts. The plan was then presented to the public for comment and refinement. The plan calls for strengthening and growing the current uses in the East Bank: arts, office, 12 South Bend Redevelopment Commission Special Meeting -June 13, 2008 3. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... residential, technology and medical uses, some retail, dinner and dining, and a hotel. The plan anticipates some public investment, including two parking structures, to accommodate the desired density: at Sycamore and LaSalle and at Niles and Washington. It also proposes rebuilding the Howard Park community center to be more inviting and have a larger presence there, rebuilding the ice rink. Mr. Gibney noted that Holladay Corporation did not receive any compensation for the services it provided in facilitating this plan. It is really a wise plan of conservation and development. Coupled with this plan is a financial investment plan for the public sector. That was critical. We tried to model the city's participation in this plan after the Eddy Street Commons participation. For the city to participate at significant levels requires significant private participation first. Just the announcement of this plan has brought developers to the table, particularly on the residential side. The staff is very supportive of the plan. Mr. Gibney also noted that the city would like to see the East Bank Village developed without tax abatement. If the city is going to have enough TIF to construct parking garages, we can't offer tax abatement during the same period of time. That's how the development on the south side of town proceeded, and that's how Eddy Street 13 South Bend Redevelopment Commission Special Meeting -June 13, 2008 3. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... Commons will proceed. Mr. King noted that, obviously, it will take some time for this plan to unfold, given that a lot of it is dependent on private sector involvement and the availability of government resources as they come along. During that time, since we're not changing any zoning, it would be possible for someone to come in and do a development that torpedoes the plan. To what extent does the plan's incorporation into the South Bend Central Development Area Development Plan allow us to prevent such damaging development? Mr. Gibney responded that communication is key. There should be plenty of opportunity for residents to complain if they learn of inappropriate development. When new development requests public assistance, the city can refuse if it doesn't conform to the plan. Mr. Perri asked if there could be some legal hurdle established that would require approval of any project. Mr. Gibney offered to look into that possibility. We'll try to put as much safety around this plan, through communication, as we possibly can. You wouldn't want to make this plan so tight that another good idea that we hadn't envisioned can't come forward and be implemented. Flexibility is also necessary. Mr. King suggested supplementing this plan with design considerations. Mr. Gibney agreed that they could. 14 South Bend Redevelopment Commission Special Meeting -June 13, 2008 3. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... Mr. Downes agreed that design guidelines are necessary to provide teeth to the plan. Ms. Laurent noted that as part of the South Bend Central Development Area Development Plan, the East Bank Village Plan it is now governed by the design guidelines that govern downtown. Staff believes that those need to be updated and even specialized for the East Bank, but they do offer some protection, and they prompt communication between the Building Dept. and Community & Economic Development when a developer tries to pull a building permit. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2458 designating and declaring an amendment to the Development Plan for the South Bend Central Development Area. (Adding East Bank Village Master Plan) (2) Commission approval requested for Option Contract for 118 N. Main Street. (JMS parking lot) Ms. Laurent noted that 118 N Main St. is the surface Parking Lot owned by Mary Coyne Investments, Inc., adjacent to the historic JNIS Office Building. An offer to purchase the property for $102,500, set by the average of two MAI appraisals, was rejected by John Coyne and a counteroffer in the amount of $200,000 has been negotiated, along with COMMISSION APPROVED RESOLUTION NO. 2458 DESIGNATING AND DECLARING AN AMENDMENT TO THE DEVELOPMENT PLAN FOR THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (ADDING EAST BANK VILLAGE MASTER PLAN 15 South Bend Redevelopment Commission Special Meeting -June 13, 2008 3. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... conditions that will be attached to a potential transaction that would justify this purchase price. The owner of the JMS Building, John Freidline, approached the city earlier this year and requested assistance with parking assembly for a proposed redevelopment of the JMS building for residential condominiums. Because of the intended nature of the project, the Commission would only acquire the property by exercising an option on the property and disposing of it through public disposition process in support of the JMS residential project. We would only purchase the property if we were to receive a minimum of $125,000 for the lot from Mr. Freidline, along with the commitment of residential development. Without a negotiated development agreement in place with Mr. Freidline, we would either expect full recapture of the $200,000 purchase price from him, or else the Commission would not exercise this option to purchase. By entering into the option arrangement, the Commission's investment is limited to $2000, but Mr. Freidline gains a degree of certainty over the parking supply that his lenders require while advancing his financing application for the residential project. Ms. Laurent recommended Commission approval. Mr. Downes asked about the results of Mr. Freidline's preliminary marketing. Was there demand for residential condos? Ms. 16 South Bend Redevelopment Commission Special Meeting -June 13, 2008 3. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... Laurent responded that Mr. Freidline has not done preliminary marketing yet. He wants this parking lot in place before trying to get investment partners. Although staff has seen some renderings, Ms. Laurent doesn't believe the whole plan has been fleshed out. Staff does believe there is demand for this type of residential as long as the price is modest. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved the Option Contract for 118 N. Main Street. (JMS parking lot) (3) Commission approval requested for proposal for consulting services in the South Bend Central Development Area. (Coveleski Stadium study. Mr. Schalliol noted that 2007 was Coveleski Regional Stadium's 20th season. Many of the buildings' major systems are at or beyond the end of their useful life. Since staff has been considering upgrades and changes to the complex, we would like to have a facility analysis done to determine what needs to be replaced. HOK Sport has submitted a proposal to do the analysis for a cost of $40,000. The analysis would include major systems, the playing surface, structural, and architectural, entertainment electronic systems, operations and electronic systems, and operational systems. They would also provide a capital expense matrix for deficient categories. The $40,000 amount does not include reimbursable expenses, so staff COMMISSION APPROVED THE OPTION CONTRACT FOR 118 N. MAIN STREET. (JMS PARKING LOT 17 South Bend Redevelopment Commission Special Meeting -June 13, 2008 3. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) continued... recommends approving the proposal at an amount not to exceed $45,000. Mr. Leone noted that there is some boilerplate language in the proposal related to interest and cost sharing. He suggested approving the proposal subject to legal review. Upon a motion by Mr. King, seconded by COMMISSION APPROVED THE REQUEST FOR Mr. Downes and unanimously carried, the PROPOSAL AND ACCEPTED THE PROPOSAL FROM COmmisslOn apprOVed the reC1UeSt for HOK SPORT, SUBJECT TO LEGAL REVIEW, IN AN AMOUNT NOT TO EXCEED $45,000 proposal and accepted the proposal from HOK Sport, subject to legal review, in an amount not to exceed $45,000. (4) Commission approval requested for cleanup of property in the South Bend Central Development Area. (520 W. Wayne St.) Ms. Jennings noted that the Commission acquired 520 W. Wayne St., the former Cleo Washington property, in December 2007. It has some debris surrounding the building that needs to be cleaned up. It has been an attraction for vandalism. Staff has obtained a quote from CFH Landscape Services in the amount of $1,270 to complete the cleanup. Staff requests approval. Mr. Leone suggested approval subject to proof of insurance. Mr. King asked if keeping this property clean is going to be an ongoing problem. What 18 South Bend Redevelopment Commission Special Meeting -June 13, 2008 3. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued... plan does the staff have for the property? Mr. Schalliol responded that the goal is to approach the adjacent property owner about selling a portion he doesn't use to create an additional homestead property adjacent to the Washington home and then putting both up for sale. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal and accepted the proposal from CFH Landscaping for the scope of services and fee proposed, subject to providing proof of insurance. C. Airport Economic Development Area (1) Commission approval requested for Quit Claim Deed for property in the Airport Economic Development Area. (1010 Bendix Drive, Bendix Family Physicians) Ms. Laurent noted that this Quit Claim Deed is the mechanism by which the Commission takes ownership of the property as authorized at the last Commission meeting in order to make improvements to the property. Then it will be conveyed back to the Bendix Family Physicians. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission accepted the Quit Claim Deed for 1010 Bendix Drive in the Airport Economic Development Area. COMMISSION APPROVED THE REQUEST FOR PROPOSAL AND ACCEPTED THE PROPOSAL FROM CFH LANDSCAPING FOR THE SCOPE OF SERVICES AND FEE PROPOSED, SUBJECT TO PROVIDING PROOF OF INSURANCE COMMISSION ACCEPTED THE QUIT CLAIM DEED FOR 1010 BENDIX DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT UREA 19 South Bend Redevelopment Commission Special Meeting -June 13, 2008 6. NEW BUSINESS (CONT.) 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 Commission Role in Service Contract Property Description Transaction Contractor Provided Amount Staff Member NW Corner St. Joseph & Disposition Abonmarche Legal $1,500 Laurent Jefferson Blvd Descriptions Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission ratified the services contract entered into by staff since June 6, 2008. 7. PROGRESS REPORTS A. Tax Abatement Mr. Inks reported that on June 9 staff made a report to the Common Council on Residential Tax Abatement. Upon review of the analysis 20 COMMISSION RATIFIED THE SERVICES CONTRACT ENTERED INTO BY STAFF SINCE JUNE 6, 2008 PROGRESS REPORTS South Bend Redevelopment Commission Special Meeting -June 13, 2008 7. PROGRESS REPORTS (CONT.) presented, the Council took action to once again begin accepting applications for Residential Tax Abatements. They did not set any limit at either end of the housing value scale, but will continue processing as they did previously. Tax abatements for residential are still available city wide for any value of housing development. B. Common Council Mr. Inks noted that the Commission has a public hearing scheduled for June 25 related to expansion of the Airport Economic Development Area to add all of the Portage Prairie development to the AEDA. This is all precipitated by the recent change in state law. As of July 1 boundary expansions to TIF areas would have to be approved downstate by the Indiana Economic Development Commission. The IEDC has not established guidelines. We don't know if we may be precluded from incorporating Portage Prairie in the future. So, to keep this decision at the local level, we are taking steps to try and get this done before July 1. Since July 1 is a firm date, if it doesn't get done then, it won't happen except by going to the IEDC first. Because of that, there has been some question about whether the Common Council needs to approve boundary changes in economic development areas. To eliminate any challenge about the process used, we are proposing that this go to the Common Council for approval as well. It will be on the Council agenda June 23. Two days later will be the Commission's public hearing. The expansion doesn't guarantee or commit any resources to Portage Prairie from the TIF, but it does leave open the local government option to provide resources. Without that, it's outside the AEDA and there's a fair chance that we would not be able to use TIF to support development if we wanted to. 21 South Bend Redevelopment Commission Special Meeting -June 13, 2008 7. PROGRESS REPORTS (CONT.) Mr. Blake asked if there are any other areas that should be handled this way also. Mr. Inks responded that we do not know of any, but it would be too late to start the process now. Mr. Blake asked why it will be difficult to get this kind of thing done after IEDC gets involved. He particularly mentioned Beacon Heights which was left out of the AEDA when LaSalle Square was brought in. Mr. Inks responded that we don't know what the IEDC guidelines are going to be. Their focus has not been on residential development. Mr. King asked if Mr. Inks expected the IEDC to be resistant to this kind of expansion because the capture of TIF interferes with their plans for financing school districts and other things. Mr. Inks agreed that that could be the case. We've heard that they may look at these similar to the way they look at other projects. If you have a true project with economic impact they might approve an isolated expansion for that particular area. But what we have tried to do out in the Airport area is to create opportunities for development: have sites ready, have infrastructure ready. IEDC typically doesn't do that with their other programs. Mr. Blake noted that he has received a letter from Marty Wolfson complaining about the limited opportunity for public input on this boundary change. Mr. Inks responded that the public will have two opportunities to have input, both at the June 23 Council meeting and at the June 25 Commission meeting. He admitted that it is a short timeframe. There just isn't anything we can do about that at this point. We have done everything required by state law to meet the notice requirements for the public hearings. We just don't have the option of providing additional time. 22 South Bend Redevelopment Commission Special Meeting -June 13, 2008 7. PROGRESS REPORTS (CONT.) Mr. King noted that Mr. Wolfson was complaining about the fact that the resolution isn't posted on the Web site for public review. That is a legitimate complaint. Mr. King felt there needed to be some education done. On the face of it, it may look like the reason for doing this is to find a way to subsidize development in Portage Prairie. But what isn't realized is that by having Portage Prairie in the AEDA, we're going to get to capture the tax increment from anything developed in Portage Prairie and end up with a much bigger TIF pot. Mr. Inks agreed. He noted that the existing AEDA has experienced about $SOOM in growth since it was declared. Portage Prairie is almost an identical $SOOM project on 450,000 acres. It has tremendous growth and revenue potential for the AEDA. Ms. Jones noted that that is all the more important since we realize that it will be difficult to get a lot of commercial and retail in the LaSalle Square area, but there are other things we can do. However, those things are not taxable. Those projects will not be adding to TIF. We will need taxable development to fund those infrastructure improvements. Mr. Inks noted that Resolution No. 2456 will be on the city's Web site by the end of today. Mr. Inks also reported that staff will begin putting the entire Commission packet of agenda items on the Web site, beginning with the June 25 meeting. Mr. Blake stated that he thinks Mr. Wolfson's concern is urban sprawl, and that is a valid concern. Mr. Wolfson is not in need of educating in that regard. If he has concerns, they are worth paying attention to. Mr. Blake noted that Mr. Wolfson may call some meetings for public discussion of this issue before the June 25 meeting. 23 South Bend Redevelopment Commission Special Meeting -June 13, 2008 7. PROGRESS REPORTS (CONT.) Mr. Inks also reported on staffs' intent to look at a Master Lease for the retail properties on Michigan Street. We will also get appraisals of the properties individually for the purpose of renewing leases as they become due. 8. NEXT COMMISSION MEETING Ms. Jones noted that the Regular Meeting scheduled for June 20 is rescheduled to June 25, 2008 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. King made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 11:15 a.m. ~~ .. - ~a1~'E ;;ilis~ ~ .. .. . NEXT COMMISSION MEETING ADJOURNMENT :. 24