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HomeMy WebLinkAboutRedevelopment Commission Minutes 9.23.21 South Be n d. Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, IN 46601 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING September 23, 2021 9:30 a.m. http://tiny.cc/RDC092321 Presiding: Marcia Jones, President South Bend, Indiana The meeting was called to order at 9:39 a.m. 1. ROLL CALL Members Present: Marcia Jones, President Don Inks, Vice-President Troy Warner, Secretary Eli Wax, Commissioner Leslie Wesley, Commissioner Members Absent: Legal Counsel: Sandra Kennedy, Esq. Redevelopment Staff: Mary Brazinsky, Board Secretary Others Present: Tim Corcoran Amanda Pietsch Angela Smith Andrew Netter Michael Divita Caleb Bauer Jitin Kain Charlotte Brach Kara Boyles Conrad Damian WNDU Jason Piontek Alexandro Bender DCI DCI DCI DCI DCI Mayor’s Office Engineering Engineering Engineering Resident News Station South Bend Redevelopment Commission Regular Meeting – September 23, 2021 2. Approval of Minutes • Approval of Minutes of the Regular Meeting of Thursday, September 9, 2021 Upon a motion by Vice-President Inks, seconded by Secretary Warner, the motion carried unanimously, the Commission approved the minutes of the regular meeting of Thursday, September 9, 2021. 3. Approval of Claims • Claims Submitted for September 9 and September 14, 2021 Upon a motion by Vice-President Inks, seconded by Secretary Warner, the motion carried unanimously, the Commission approved the claims for September 9 and September 14, 2021, submitted on Thursday, September 23, 2021. 4. Old Business 5. New Business A. River West Development Area 1. Budget Request (Water Main Const./Funding Transfer) Ms. Boyles presented Budget Request (Water Main Const./Funding Transfer). The City of South Bend Division of Engineering recently received the budget numbers and Engineer’s estimate for the subject project. This is for the Chocolate Park water main. We are requesting the Redevelopment Commission transfer $560,000.00 to the project to cover the shortfall for construction costs. Once the project bids are received additional transfers may be necessary if bids are outside of our anticipated budget to construct the project. This is the last piece of commitment to the developer for this site. Commission approval is requested. Commissioner Warner states that this is a large overrun to cover shortfall of construction costs. Ms. Boyles states that this is for the water main portion only. Ms. Pietsch states that the language is due to tracking the project in the ERP system. Jacob was stating that there was not enough to cover the next phase of the project in the ERP system. That we needed to ask for the next amount of funds out of the ERP system. Commissioner Wax asks that this was the ask the whole time. Ms. Boyles states that the project was for $1.5M and we did not request that amount at the time. We only asked for the sewer portion amount at the time. We are hoping to not use the entire amount. This is great winter work, and the water main is 5’ deep. There should be no delays. South Bend Redevelopment Commission Regular Meeting – September 23, 2021 Upon a motion by President Jones, seconded by Vice-President Inks, the motion carried unanimously, the Commission approved Budget Request (Water Main Const./Funding Transfer) submitted on Thursday, September 23, 2021. B. River East Development Area 1. Budget Request (East Bank Parking Study) Mr. Kain presented Budget Request (East Bank Parking Study). Over the last few years, we have been doing extensive work in the East Bank area. We began with Jefferson Blvd. and Hill and Colfax. With the increase in development activity in the East Bank neighborhood, on-street parking is seeing higher utilization. Currently, on-street parking in the East Bank is unrestricted which leads many to park their vehicles all day on the street. This further creates an issue for retailers who can benefit from better turnover rates. We are asking for a budget of $17,500 to perform a parking study to assess conditions and utilization and assign appropriate parking restrictions in the East Bank area. Commission approval is requested. Upon a motion by Secretary Warner, seconded by Vice-President Inks, the motion carried unanimously, the Commission approved Budget Request (East Bank Parking Study) submitted on Thursday, September 23, 2021. C. Douglas Road Development Area 1. Budget Request (Douglas Road Reimbursement) Ms. Pietsch presented Budget Request (Douglas Road Reimbursement). Earlier this year we came to the Commission to have the Commission reimburse our sewer capital fund for our cost related to the Douglas Road Lift Station. Following up on this, we received out June TIF settlement in the amount of $91,370 to repay a portion of the obligation to the Sewer Rehab Capital Account for the relocation and replacement The total obligation of the interfund loan is $300,517.13, leaving $209,147.96 after this repayment. Assuming this level of TIF collections remains constant, staff anticipates satisfying the obligation with the December 2022 collections. Upon a motion by Commissioner Wax, seconded by Secretary Warner, the motion carried unanimously, the Commission approved Budget Request (Douglas Road Reimbursement) submitted on Thursday, September 23, 2021. 6. Progress Reports A. Tax Abatement B. Common Council C. Other 1. Ms. Kennedy presented Letter to River Race Townhomes. In the packet is a letter I am proposing to send to River Race Townhomes and the City. The letter is the result of complaints to City leadership due to non-compliant parking lot at Jefferson and Niles. You may recall this is where the art wall was located and is now taken down to reveal a gravel parking lot which South Bend Redevelopment Commission Regular Meeting – September 23, 2021 does not comply with the zoning ordinance. Additionally, that property was purchased in 2012 known as the Trager site for $10 by River Race Townhomes. One of the promises from the developer was to develop this lot once the highest and best use was determined as well as the marketability of that lot. The city and the Redevelopment Commission would agree that a gravel parking lot is not the highest and best use of this parcel. We are sending a notice of default under the development agreement. The development agreement had restrictions of use on the lot until the end of this year that was included in the deed. The lot was to be developed for commercial use. It didn’t have to be developed as part of the original project so when we filed the Certificate of Completion for the project, it did not include that lot, but the developer did indicate that it would develop the lot into a commercial building. With Commission approval we would like to send the letter of default and pursue any legal action against the developer to ensure the development of that lot to be sure it doesn’t appear to have blight which the Redevelopment Commission works towards improving. President Jones asked when the last time was, we reached out to the developer. Ms. Kennedy replied we communicated him when we removed the art wall. He previously had a crane and other construction materials at the site. There were no permits pulled and there was no other communication since that time. Vice-President Inks asked if we attempted to communicate. Ms. Kennedy states that no, other than the art wall. Angela Smith and other city leaders have received complaints regarding that lot being out of compliance. This would be the 1st communication with him. President Jones asked if there is a plan. Ms. Kennedy states we would like to hear about his plans for the site. We would like to hear that he has plans for a commercial building and the dates of the project to be developed. Commissioner Warner said that $10 was what the LLC bought the property for. Ms. Kennedy states the value of the property was $339,000 at the time. Commissioner Wax asked if it was typical to start with a notice of default letter or is this because of the December 31, 2021, deadline. South Bend Redevelopment Commission Regular Meeting – September 23, 2021 Ms. Kennedy stated we are being driven by the December 31, 2021, deadline so the developer would have 30 days to respond. Sometimes from this developer we do not receive a response. This is why we are asking for a response. Commissioner Warner states he agrees with this action and is glad to see that we are holding developers accountable when they make an agreement with the city. The property was bought for $10, and the agreement states he can’t hold it for speculation, and it seems to be what has happened since he has done nothing with the lot. I believe we should look at all developments and make sure all developers are being good stewards. Upon a motion by Secretary Warner, seconded by Commissioner Wax, the motion carried unanimously, the Commission approved sending the default letter to River Race Townhomes submitted on Thursday, September 23, 2021. 7.Next Commission Meeting: Thursday, October 14, 2021, 9:30 a.m. 8.Adjournment Thursday, September 23, 2021, 9:59 a.m. Troy Warner, Secretary Donald E. Inks, Vice-President