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HomeMy WebLinkAbout2A Redevelopment Commission Minutes 7.28.22 South Be n d Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, IN SOUTH BEND REDEVELOPMENT COMMISSION RE-SCHEDULED REGULAR MEETING July 28, 2022 – 9:30 am https://tinyurl.com/RDC72822 or BPW Conference Room 13th Floor Presiding: Marcia Jones, President The meeting was called to order at 9:30 a.m. 1. ROLL CALL Members Present: Marcia Jones, President - IP Don Inks, Vice-President - IP Troy Warner, Secretary - IP Eli Wax, Commissioner – IP Vivian Sallie, Commissioner, IP IP = In Person V = Virtual Members Absent: Leslie Wesley, Commissioner Legal Counsel: Sandra Kennedy, Esq. Danielle Campbell-Weiss, Esq. Redevelopment Staff: Mary Brazinsky, Board Secretary - V Others Present: Laura Althoff Andrew Netter Rachel Boyles Michael Divita Kara Boyles Leslie Biek Charlotte Brach Jim Conklin Jeremy Lugbill Conrad Damian Matt Barrett Bill Panzica WNDU DCI - V DCI - V DCI - V DCI - V Engineering - V Engineering - V Engineering - V Cultivate Culinary - IP Career Academy - V Resident - V Resident - IP Crescent Michiana - V Media - V South Bend Redevelopment Commission Regular Meeting – July 28, 2022 2. Approval of Minutes • Approval of Minutes of the Regular Meeting of Thursday, July 14, 2022 Upon a motion by Vice-President Inks, seconded by Commissioner Sallie, the motion carried unanimously, the Commission approved the minutes of the regular meeting of Thursday, July 14, 2022. 3. Approval of Claims • Claims Submitted for July 26, 2022 Upon a motion by Vice-President Inks, seconded by Commissioner Sallie, the motion carried unanimously, the Commission approved the claim July 26, 2022, submitted on Thursday, July 28, 2022. 4. Old Business 5. New Business A. River West Development Area 1. Waiver and Release (Blackthorn Office Park Lot 4a) Mr. Molnar Presented Waiver and Release (Blackthorn Office Park Lot 4a). This property is located off Nimtz on Crescent Circle just south of the toll road. The original property agreement from 2002 specified that an office building and parking lot would be built on this site. The original purchase price was $162,400 and they had a faithful performance guarantee of $23,332 which was extra money given to the commission as incentive for completion of the project. If the agreement was completed, they would have received a certificate of completion and we would have returned the $23k. The commission has retained the money over the last two decades as the agreement was not fulfilled. Crescent Michiana, which owned the property, wishes to transfer the property to the Career Academy. The commission has the right to approve or deny this transfer. Upon review, staff recommends this transfer. The owner had paid $162k plus $23k performance guarantee in 2002. Today the assessed property value is $22k. Staff agrees that it would not be in the city’s best interest to re-market this property. A waiver and release has been prepared which outlines the obligations of the transfer. Commission approval is requested. Vice-President Inks asked what happens to the performance guarantee? Mr. Molnar states the city keeps it as Crescent Michiana did not achieve the performance guarantee. Vice-President Inks asked if this property is still part of an owner’s association? Mr. Molnar stated he believes it is, however, the once strict rules and policies have South Bend Redevelopment Commission Regular Meeting – July 28, 2022 changed. Commissioner Wax asked if the waiver is conditional on them giving it to Career Academy? Mr. Molnar stated yes; Career Academy will be using this to expand their grounds. Bill Panzica, Crescent Michiana noted that the city had given property to Career Academy that they will be using for athletic field. The school acquired the building to the east which they are using for their master planning to possibly have additional parking for the school athletic field or to be able to connect the two buildings for additional classes and programs. Jeremy Lugbill, Career Academy noted that as the school continues to develop and grow; they would like to connect the two buildings. With the land that the city gave to the school, the students use for environmental studies and are clearing trails, laying mulch, doing soil samples and learning. They would like to eventually expand. Upon a motion by Commissioner Sallie, seconded by Secretary Warner, the motion carried unanimously, the Commission approved Waiver and Release (Blackthorn Office Park Lot 4a) submitted on Thursday, July 28, 2022. 2. Real Estate Purchase Agreement (Cultivate Culinary School and Catering Inc). Mr. Molnar Presented Real Estate Purchase Agreement (Cultivate Culinary School and Catering). This land is located along Prairie Avenue just west of Ignition Park where Prairie and Campbell come together. The property went through the disposition process in 2014 for a minimum bid of $63,500. No bids were received. Cultivate Culinary School and Catering approached the city to purchase the property and provided plans which staff recommends. The property assessed value is $60k. The school will purchase the property with the agreement of a minimum investment of $3M to build a minimum 12,000 square foot building specifically as a cold storage building. They will have twelve full-time employees staffed by cultivate with a 60-month completion due date. This is a little longer than normal requirements, however, they are fundraising and need a little more building time. The city has the right to take the property back if obligations are not met or cultivate has the option to pay the fair market value of the property. Jim Conklin, cultivate presented an artist rendering to the commission showing that the facility is approximately 21,000 square feet that will hold 50 to 55 truckloads of cold storage. The mission is to rescue food from food service businesses, grocery stores, catering companies, restaurants, and farmer’s markets that would otherwise spoil and go to landfills. They are working with Tiffany Group out of Franklin Indiana that has 1M square feet of cold storage and they have become a regular donor to the mission. This will help to bring food into our community to help those in need. The meals go into school backpack programs in St. Joseph, Elkhart, and Marshall counties. Approximately one- South Bend Redevelopment Commission Regular Meeting – July 28, 2022 hundred thousand pounds of food. Cultivate also works with major grocery store chains to participate in several organizations. They are working with Fresh Thyme, Whole Foods, and Trader Joe’s. They would like to work with a few of the other major grocery chains, however, they do not have the storage space yet. Jim estimates the project will be in the $6M to $7M price range. They will add a few employees, but this facility will basically be shipping and receiving. The project saves a lot of transportation miles and saves about 20% of food that goes into a landfill which is 12% to 14% of greenhouse gas emissions. Estimated one-hundred pounds of food goes out every single month through food pantries and almost 30,000 frozen meals to vulnerable students and pantries in the community. The hope is to break ground and start building spring 2023. They are fundraising to finance this project. They have donors in line that have committed $3.6 to $4.2M. President Jones asked how close is the nearest organization that does something similar? Mr. Conklin replied Indianapolis which has been doing this for 24 years. The process started on the west coast and is just starting to take hold in the Midwest. This is about targeting food before it perishes. Jim’s team works with food from General Mill to Johnsonville which are big food manufacturers. These manufacturers place food in supply chain warehouses hoping that stores such as Kroger purchase that food. If they don’t it goes to a warehouse in Franklin Indiana which donates 20 truckloads of food every month to local organizations like ours. Commissioner Sallie asked how many employees are there currently and with the expansion how many will be hired? Mr. Conklin replied there are eleven full-time and four to seven part-time employees. Staff will grow slowly over time with but he doesn’t anticipate more than five additional people. There is a lot of volunteer support with approximately fifty-four thousand in 2021. Matt Barrett, resident noted that this was a very impressive presentation and a great organization. Mr. Barrett also noted that this is really a pittance of a $5M to $6M project that is 10% of what could be potentially provided. He urges the commission and the city to keep these priorities. Secretary Warner stated that he has volunteered and found that it was an amazing and vital organization in our community. He thanked Jim Conklin and the organization for what they are doing to help our neighborhoods. Upon a motion by Commissioner Wax, seconded by Secretary Warner, the motion carried unanimously, the Commission approved Real Estate Purchase Agreement (Cultivate Culinary School and Catering) submitted on Thursday, July 28, 2022. South Bend Redevelopment Commission Regular Meeting – July 28, 2022 3. First Amendment to Real Estate Purchase Agreement (2401 W Western Ave) Mr. Molnar Presented First Amendment to Real Estate Purchase Agreement (2401 W Western Ave). This is for the property located at 2401 west western avenue. July 2021, the commission approved a purchase agreement with Panderia Supermercado in the amount of $1,000. The conditions of the contract were that a grocery store be built of at least 10,000 square feet with two additional tenant spaces. The construction was to be completed in 36 months and to employee 25 employees. City planning has final say over the design of the building. In the original agreement there was a 12 month commence construction date from closing which was September 2021. Staff is asking the commission to extend the date as it looks like they will break ground in November 2022 depending on the weather, the latest would be spring 2023. We are not asking for extension of the original 36 months completion. Michael Divita is here from our planning team if there are any questions as he has been overseeing the project. Commission approval is requested. Upon a motion by Commissioner Wax, seconded by Secretary Warner, the motion carried unanimously, the Commission approved First Amendment to Real Estate Purchase Agreement (2401 W Western Ave) submitted on Thursday, July 28, 2022. B. River East Development Area 1. Budget Request (Campeau Streetscape) Ms. Boyles Presented Budget Request (Campeau Streetscape). We are asking the commission for a budget request of $2.1M to complete the design and construction of Campeau streetscape. This is a complete street project from Campeau Street to Eddy to Notre Dame Avenue to South Bend Avenue intersection. This will improve the pedestrian and bicycle routes along that stretch. This shared use path will have bump outs and a raised intersection. A lot of the residents in the neighborhood have asked for more safety precautions in the area. Commission approval is requested. Secretary Warner asked if this takes the path all the way to the East Bank trail or is that separate funding? Ms. Boyles stated that it will be separate funding for the East Bank project. We are in process applying for funds from the hotel/motel board for continuous path along South Bend Avenue all the way to Hill Street and connecting downtown into LaSalle Avenue. Matt Barrett, resident, asked for clarification on the budget request presented as there are two very different numbers. Charlotte Brach stated $2.1M is the new request. The total at the bottom is what was asked for in the past and what is being asked for today. South Bend Redevelopment Commission Regular Meeting – July 28, 2022 Upon a motion by Secretary Warner, seconded by Commissioner Sallie, the motion carried unanimously, the Commission approved Budget Request (Campeau Streetscape) submitted on Thursday, July 28, 2022. 2. Budget Request (Western Streetscape Phase IV) Ms. Leslie Biek Presented Budget Request (Western Streetscape Phase IV). This budget request in the amount of $1,300 is to contract with HWC for additional utility located to verify existing utilities prior to boring. This will be from Walnut to Chapin Streets. Commission approval is requested. Upon a motion by Vice-President Inks, seconded by Commissioner Sallie, the motion carried unanimously, the Commission approved Budget Request (Western Streetscape Phase IV) submitted on Thursday, July 28, 2022. 6. Progress Reports A. Tax Abatement 1. Mr. Molnar noted that the Council approved the first resolution of the tax abatement on the Monroe project of the former Fat Daddy’s site. Ms. Deveraux told the city they applied for the tax credits ahead of the deadline and will anxiously wait until November to see if the project is approved by state. B. Common Council C. Other 1. Mr. Barrett, 110 S. Niles Avenue, pointed out that it was five weeks ago at the June 23rd meeting that he asked the commission to hear from Mr. David Matthews to explain where things stood on three separate projects. He is not here today. Mr. Molnar stated that Mr. Bauer is off this week but has continued to reach out to Mr. Matthews. He will update us at the next Redevelopment Commission meeting. 7. Next Commission Meeting: Thursday, August 11, 2022 8. Adjournment Thursday, July 28, 2022, 10:10 a.m. Troy Warner, Secretary Marcia Jones, President