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HomeMy WebLinkAboutRedevelopment Commission Minutes 9.22.22 South Be n d Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, IN SOUTH BEND REDEVELOPMENT COMMISSION RE-SCHEDULED REGULAR MEETING September 22, 2022 – 9:30 am https://tinyurl.com/RDC 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 Troy Warner, Secretary – IP Eli Wax, Commissioner – IP Leslie Wesley, Commissioner - V IP = In Person V = Virtual Members Absent: Donald Inks, Vice-President Vivian Sallie, Commissioner Legal Counsel: Sandra Kennedy, Esq. Danielle Campbell-Weiss, Esq. Redevelopment Staff: Mary Brazinsky, Board Secretary Joseph Molnar, RDC Staff Others Present: Erik Glavich Laura Althoff Chris Dressel Finn Cavanaugh Zach Hurst Charlotte Brach Conrad Damian Anne Hayes Leslie Biek Rachel Boyles DCI – IP DCI – V DCI – IP DCI – IP Engineering – IP Engineering – V Resident – V Sibley Machine – V Engineering – V DCI - V South Bend Redevelopment Commission Regular Meeting – September 22, 2022 2. Approval of Minutes • Approval of Minutes of the Regular Meeting of Thursday, September 8, 2022 Upon a motion by Commissioner Wax, seconded by Secretary Warner, the motion carried unanimously, the Commission approved the minutes of the regular meeting of Thursday, September 8, 2022. 3. Approval of Claims • Claims Submitted for September 6 and September 13, 2022 Upon a motion by Secretary Warner, seconded by Commissioner Wax, the motion carried unanimously, the Commission approved the claims for September 6 and September 13, 2022, submitted on Thursday, September 22, 2022. 4. Old Business 5. New Business A. River West Development Area 1. Resolution No. 3558 (Disposition Offering Price 117/119 Lafayette) Mr. Molnar presented Resolution No. 3558 (Disposition Offering Price 117/119 Lafayette). This Resolution sets the Disposition Offering Price for 117/119 Lafayette Building and the adjacent parking lot. The city acquired the Lafayette building from delinquent taxes through the county in 2018. The city has put approximately $1M into the building just to stabilize it which includes a brand-new roof, repairing the skylight, brick, and masonry repair as well as an improved drainage system so the building is watertight. There is a significant amount of renovation that needs to be done inside. While the building sat vacant, there was a lot of water damage, and it was vandalized several times. The inside needs a complete overhaul, but the city believes it is a good place to see if there is interest from private investors. The RFP staff put together will be presented differently than in previous RFPs. The appraisal for the building and parking lot is $392,010 which is the average appraisal price. We will be doing various things to publicize the availability of the property. On October 18, 2022, the building will be open for tours. Individuals will have to sign a release for safety. We have extended the bid date to January 26, 2023, to hopefully receive some good bids as it is a beautiful building. In the past we have done 30-to-60-day RFPs and the feedback received was that is not long enough for investors to get a good look at properties. Bids can be submitted in person at the 14th floor office of Community Investment, mailed or emailed. We have set up a specific email address just for the RFPs. The RFPs will be sealed until the meeting on January 26, 2023, in which they will be opened in front of the Commission and read. Staff will then take the RFPs for South Bend Redevelopment Commission Regular Meeting – September 22, 2022 review and return with a recommendation on March 9, 2023. The RFP contains background on the building that provides project objectives along with desired use. There are forms to fill out and we have included helpful attachments including a full layout of the building from Kil architecture from when the city purchased the building. We are open to any use as long it fits within zoning. The city does ask that the RFP include preservation of the skylight. We feel this is an exceptional feature of the building. The city has set up a specific website for this and all future RFPs. Commission approval is requested. Commissioner Wax asked what the city’s intentions were when they acquired the building and put dollars into it. Mr. Molnar stated that the city’s intention was to stabilize the building and put it out to RFP for productive use. The private investor will have to put in a substantial amount. Commissioner Wax asked if the city was less focused on return of investment and more on stabilization of the building. Mr. Molnar replied yes, the building is a landmark that should be protected. Secretary Warner noted in 2018 the focus was on stabilizing the building so it would not have to be torn down. Mr. Molnar stated that the building was the first dedicated office building (1901) and we would like to preserve it instead of tearing it down. There is also significant African American history in the building in which it housed the first African American lawyer in the city; his name and information is on a monument outside of the building. The building is historically designated both locally and nationally as part of the National Washington district. Commissioner Wax noted that he likes the skylight. He is wondering if there could be any adjustment to the RFP amount. Mr. Molnar noted that if the RFPs do not come in at the appraisal amount, the board has the power to accept or reject any bids. Secretary Warner asked will investors be able to ask about TIF dollars or tax abatements? Mr. Molnar stated that the city is asking investors to be up front about asking for TIF or tax abatements during the RFP process. President Jones opened questions to the public. Matt Barrett, resident asked if the bids stay sealed. Mr. Molnar stated the bids will be sealed until the January date and opened during the commission meeting and will be read into the minutes. In March we will have South Bend Redevelopment Commission Regular Meeting – September 22, 2022 a recommendation to the Commission. Mr. Barrett asked once the bids are opened can an investor make a higher bid or do they need to make their best bid. Mr. Molnar states that yes, investors need to make their best bid by January 26, 2023. Mr. Molnar will be the point of contact to answer any questions from the investors up until that date. The city will put out a press release and put into the media casting out a wide net for possible investors. The information will be available during South Bend’s hosting of the Historic convention. Upon a motion by Secretary Warner, seconded by Commissioner Wax, the motion carried unanimously, the Commission approved Resolution No. 3558 (Disposition Offering Price 117/119 Lafayette) submitted on Thursday, September 22, 2022. 2. Approval of Bid Specifications (117/119 Lafayette) Mr. Molnar presented Approval of Bid Specifications (117/119 Lafayette). Commission approval is requested. Upon a motion by Secretary Warner, seconded by Commissioner Wax, the motion carried unanimously, the Commission approved Bid Specifications (117/119 Lafayette) submitted on Thursday, September 22, 2022. 3. Request to Advertise (117/119 Lafayette) Mr. Molnar presented a Request to Advertise (117/119 Lafayette). Upon approval, staff will request the disposition posting in the South Bend Tribune on September 30, 2022, and October 7, 2022. Commission approval is requested. Upon a motion by Secretary Warner, seconded by Commissioner Wax, the motion carried unanimously, the Commission approved a Request to Advertise (117/119 Lafayette) submitted on Thursday, September 22, 2022. 4. Temporary Access Agreement (VPA) Mr. Molnar presented a Temporary Access Agreement (VPA). The Venue Parks and Arts Department have requested a temporary access agreement to use the parking lot outside of the old football hall of fame for Best Week Ever which is happening September 28 through October 2, 2022. Commission approval is requested. Secretary Warner noted that the agreement mentions funding. Mr. Molnar states that there is no money being exchanged for the use of the lot. Any money for the event will come from VPA. South Bend Redevelopment Commission Regular Meeting – September 22, 2022 Upon a motion by Secretary Warner, seconded by Commissioner Wax, the motion carried unanimously, the Commission approved a Temporary Access Agreement (VPA) submitted on Thursday, September 22, 2022. 5. First Amendment to Development Agreement (Sibley) Mr. Hurst presented the First Amendment to the Development Agreement (Sibley). There has been an unforeseen condition that necessitates the replacement of the steel lentils above the existing windows. There is extra brick above the parapet that is adding too much weight. The steel lentils need to be replaced with the reduction of some brick. The construction budget had $17k left but the total cost is $19,240. This amendment will update the funding amount the city will invest, and the Sibley Center will reimburse the city the remaining balance of $2,240. Commission approval is requested. Upon a motion by Secretary Warner, seconded by Commissioner Wax, the motion carried unanimously, the Commission approved the First Amendment to Development Agreement (Sibley) submitted on Thursday, September 22, 2022. 6. Budget Request (Coal Line Multiuse Trail) Mr. Dressel presented a Budget Request (Coal Line Multiuse Trail). This is a budget request in the amount of $300k to build Phase II of the Coal Line Multiuse project. The construction on Phase II would begin in Spring 2023. Mr. Dressel presented a PowerPoint to the Commission showing a map of the trail and where construction has been completed in Phase I. The presentation also showed the Commission where Phase II would begin work and eventually connect to 933 and the East Bank Trail. We have added branding and signage along with benches and bike racks along the trail. Lighting has been integrated within the poles along the bridgeway. Commission approval is requested. Secretary Warner asked about security that was talked about on Phase I, will that be included in Phase II? Mr. Cavanaugh stated that they installed trail counters and lighting. There are no cameras installed. Secretary Warner asked about the safety of the pylons on the bridge. Mr. Cavanaugh stated that there have been detailed inspections by our engineers and these details have been passed on to the construction team. Secretary Warner asked if there has been a discussion connecting the trail to flow along the North Shore Drive that runs in front of the previous mayor’s home. Mr. Cavanaugh stated that we have applied for state funding along that stretch, but we do not have the funding for that yet. South Bend Redevelopment Commission Regular Meeting – September 22, 2022 Matt Barrett, resident, stated the plan says to include a trail along Angela all the way up to the old St Joe High School site. And what about the Leeper Park bridge because that prevents the connection. Mr. Dressel states that is part of Phase II. We are following the historic rail corridor. The Leeper Park bridge will be repaired the contract just went through BPW. Commissioner Wax asked once completed, how long will the trail be? Mr. Dressel states the trail will be 1.5. Upon a motion by Secretary Warner, seconded by Commissioner Wax, the motion carried unanimously, the Commission approved Budget Request (Coal Line Multiuse Trail) submitted on Thursday, September 22, 2022. B. Other Development Area 1. TIF Neutralization (2022 Baker Tilly) Mr. Molnar gave the Commission an overview on the 2022 TIF Neutralization from Baker Tilly. This item is just for information purposes. The estimated TIF capture will depend on the 2023 tax rates and the 2023 circuit breaker losses that are released by the state sometime between January to March of 2023. 6. Progress Reports A. Tax Abatement 1. Mr. Glavich noted on September 12, 2022, the Common Council approved a declaratory resolution for a personal property tax abatement to Steel Warehouse. The facility is located on Tucker Drive. They will be purchasing new machinery in the amount of $3.7M. This will allow them to hire 12 new positions and to train existing employees on the new machinery. Steel Warehouse will be spending $200k to expand their facility to house the new equipment. B. Common Council C. Other 1. Mr. Molnar noted that the Ready Grants were announced including the expanded Memorial Lifestyle Center for the two blocks South of the campus received, a little over $11M, the Morris Performing Arts Center expansion also received funding as well as the Ward Bakery Building project. 2. Mr. Matt Barrett asked if there were any updates on the Matthews situation? 3. Mr. Molnar states that he has heard nothing new. South Bend Redevelopment Commission Regular Meeting – September 22, 2022 4.Mr. Barrett noted that there is another development in Warsaw that was in the Warsaw Times. There are reports of a failed project involving Mr. Matthews. It was noted in the Warsaw Redevelopment Commission as well as the Northeast Indiana Regional Development Authority. There is a pattern with Mr. Matthews. Mr. Matthews did attend the South Streetscape public meeting. He chooses not to attend the other meetings he is requested at which is not a good reflection. Mr. Barrett also noted further research indicates that on Sycamore Street there was a tax abatement complete for 2 years, a partial for 5 years in addition there were tax delinquencies in 2019 and 2020. He believes on behalf of the taxpayers in the city of South Bend that is a call for action. 7.Next Commission Meeting: Thursday, October 13, 2022 8.Adjournment Thursday, September 22, 2022, 10:19 a.m. Troy Warner, Secretary Marcia Jones, President