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HomeMy WebLinkAbout3 Minutes 1/24/13 meetingSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING January 24, 2013 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. Greg Downes Mr. John Stancati Members Absent: Mr. Donald Alford Sr., Secretary Mr. Henry Davis 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 Ms. Debrah Jennings, Property Manager Others Present: Mr. Scott Ford, Executive Director Mr. Conrad Damian Mr. Ed Bradley Mr. Mark Peterson WNDU Mr. Don Schoenfeld, WNDU 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, January 24, 2013 Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Thursday, January 24, 2013. 1 South Bend Redevelopment Commission Regular Meeting — January 24, 2013 3. APPROVAL OF CLAIMS 324 AIRPORT AEDA Faegre Baker Daniels 20,636.62 Legal Services Stanley & Kyna Doaks 395.00 Reimbursement of Costs of Purchase Agreement Eppendorf 31,327.40 F -Cubed Hull & Associates, Inc. 5,482.59 Ignition Pk. Meridian Title Corporation 400.00 Title Searches Fisher Scientific 6,172.42 F -Cubed Accel Instruments 1,728.00 F -Cubed Code for America 110,000.00 Hull & Associates, Inc. 5,540.00 Ignition Park John Boettcher Sewer & Excavating 131,982.71 Olive Road Basin 420 FUND TIF DISTRICT -SBCDA GENERAL Ampco System Parking 1,460.84 St. Joseph Surface Parking Edward J. White, Inc. 761.06 CB Richard Ellis 877.66 Management & Maintenance Fee Schindler 168.93 Elevator Maintenance Shakespeare Lighting Design 1,753.07 River Lighting Meridian Title Corporation 750.00 Title Searches Carl Walker Inc. 1,266.00 Wayne St Parking Garage 422 TIF DISTRICT WEST WASHINGTON South Bend Heritage Foundation, Inc. 83,116.46 Historic Rushton Apartments 429 TIF FUND NORTHEAST DISTRICT Christopher B. Burke Engineering 2,385.00 So. Bend 5 Points Utility Study 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA #1 Lawson - Fishier Associates, P.C. 119,849.31 Main St.- Lafayette Blvd Connector 5528,680.42 Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Claims submitted Thursday, January 24, 2013. 4. COMMUNICATIONS There were no Communications. 2 South Bend Redevelopment Commission Regular Meeting — January 24, 2013 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. South Bend Central Development Area (1) Refund of development performance bond to Mavcon Properties, LLC (LaSalle Hotel) Mr. Relos noted that on June 14, 2011, the Commission approved a Commercial Purchase Agreement with Mavcon Properties, LLC, from Kalamazoo, Michigan. This Agreement gave Mavcon two 180 -day inspection periods to determine the feasibility of rehabilitating the LaSalle Hotel into approximately 60 market rate apartments. The Agreement called for a deposit of $2,000 at the time of signing, with another $2,000 deposit if a second 180 -day inspection period was requested, which it was. Therefore, there is on deposit a total of $4,000. On July 12, 2012, the Commission approved a 60 -day extension of the Agreement, to allow more time for both parties to analyze the needs of the other. This extension required no additional deposit. According to the Agreement, deposits made were to be forfeited if Mavcon backed out of the project after the first inspection period. Both parties have worked hard to reach a solution. Though Mavcon did not give notice, we mutually agree we cannot meet their financial needs. Considering the effort put forth by Mavcon this past year and a half, and in hopes of maintaining a future working relationship with them, staff requests approval to return their $4,000 deposit. There continues to be interest in the rehabilitation of the LaSalle Hotel, and it is hoped this year marks the beginning of a concrete plan that will see the hotel become an anchor to the downtown area. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the refund of the development performance bond to Mavcon Properties, LLC (LaSalle Hotel) (2) Agreement for Services by and between the City of South Bend, Department of Redevelopment, acting by and through the South Bend Redevelopment Commission and Downtown South Bend, Inc. (2013) Mr. Relos noted that the Commission enters into an annual agreement with Downtown South Bend, Inc. (DTSB), to provide an array of services to the downtown area. Examples of DTSB's services are: 3 South Bend Redevelopment Commission Regular Meeting —January 24, 2013 6. NEW BUSINESS A. South Bend Central Development Area (2) continued... • Beautification Program (flower pots, mulch, soil, baskets, liners) • Streetscape Improvements (banners & flags, holiday decor, street furniture & art) • Business recruitment / retention (assistance, data base, research development) The 2013 agreement is the same as the 2012 agreement, but was expanded to include DTSB's responsibility for bicycle racks and the management of the banner program. Fees for these services are $250,000, billed monthly based on services provided. DTSB's work in keeping the downtown area safe, clean, and beautiful is well documented, and makes the downtown experience pleasant and appealing. For these reasons, staff requests approval of the 2013 Agreement for Services with DTSB. Mr. Downes said the DTSB Ambassador program continues to be fabulous. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Agreement for Services by and between the City of South Bend, Department of Redevelopment, acting by and through the South Bend Redevelopment Commission and Downtown South Bend, Inc. (2013) (3) Staff report on disposition of property (Southwest corner Main/Jefferson) Mr. Inks noted that this property was acquired by Redevelopment in May 2000. Holladay had been leasing it for parking from the previous owner and entered into what was believed to be a temporary agreement on 12/3/01 to continue leasing from Redevelopment for $385 per month, on a month to month basis, the same price paid to the previous owner. Staff was in the middle of negotiating a development for that corner. Holladay continued to make payments through February 2004, then stopped. As we have pursued this over the years, Holladay has claimed they were told they did not have to pay. Until recently we have not had enough information to confirm or deny Holladay's claim. This week we received information which has allowed us to confirm that Holladay was told (in early 2003) the lease would be modified so they would no longer be required to pay. In January or February 2003 John Phair met with Jon Hunt (then Executive Director, Department of Community & Economic Development) and Karl King (South Bend Common Council). The meeting was precipitated by our pending development of the site for an office building. As part of our preparation for this development we were in the process of vacating alleys running throughout this block, except for the southern half of the alley running north and south. The alley vacations limited access to the parking and the South Bend Redevelopment Commission Regular Meeting — January 24, 2013 6. NEW BUSINESS A. South Bend Central Development Area (3) continued... development itself would have eliminated the parking. At the meeting, Jon Hunt and Karl King agreed to seek a modification of the lease to allow Holladay to use the parking lot without payment to Redevelopment, but Holladay would remain responsible for its maintenance. Jon Hunt passed away in February 2003, before he could direct staff to prepare the lease modification for Redevelopment consideration. We have confirmed with Karl King that Holladay's claim of this meeting is true and the outcome of the meeting was to seek modification of the lease to cease requirements for payment by Holladay. Accordingly, this request of the Redevelopment Commission is to terminate the lease for this parking lot. A copy of the original lease, dated 12/3/01, is attached for your reference. Mr. Inks asked that Item 6.A. (8) be moved to this point on the agenda because it needs to precede the following three items. There was no objection and the item was so moved. (8) Termination of Parking Lot (Part of 217 S. Main St.) Lease with Holladay Properties Mr. Inks noted that 217 S. Main Street was acquired by the Redevelopment Commission in May 2000. Holladay had been leasing it for parking from the previous owner and when the Commission acquired the property Holladay entered into a month -to -month lease with the Commission on 12/3/01 for $385 per month, the same price it had been paying the previous owner. Holladay continued to make payments through February 2004, then stopped. As we have pursued this over the years, Holladay has claimed they were told they did not have to pay. Until recently we have not had enough information to confirm or deny Holladay's claim. This week, we received information which has allowed us to confirm that Holladay was told in early 2003 the lease would be modified so they would no longer be required to pay. In January or February 2003, John Phair met with Jon Hunt (then Executive Director, Department of Community & Economic Development) and Karl King (Redevelopment Commissioner). The meeting was precipitated by our pending development of the site for an office building. As part of our preparation for this development we were in the process of vacating alleys running thought this block, except for the southern half of the alley running north and south. The alley vacations limited access to the parking and the development itself would have eliminated the parking. At the meeting, Jon Hunt and Karl King agreed to seek a modification of the lease to allow Holladay to use the parking lot without payment to Redevelopment, but Holladay would remain responsible for maintenance. Jon Hunt passed away in February 2003, before he could direct staff to prepare the lease modification for Redevelopment consideration. We have confirmed with 5 South Bend Redevelopment Commission Regular Meeting — January 24, 2013 6. NEW BUSINESS A. South Bend Central Development Area (8) continued... Karl King that Holladay's claim of this meeting is true and the outcome of the meeting was to seek modification of the lease to cease requirements for payment by Holladay. Accordingly, this request of the Redevelopment Commission is to terminate the lease for this parking lot. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Termination of the Parking Lot Lease with Holladay Properties for art of 217 S. Main St. (4) Ground Lease /MOU Estoppel Certificate and Agreement Explaining Items 6.C.(4), (5) and (6), Mr. Inks noted that this property is currently owned by an out -of -state investment group and is being sold to another investment group. The property is occupied by l st Source Bank and several office tenants. The Doubletree Hotel is a separate property and not part of this transaction. The estoppels are to provide the purchaser with information on the current status of various documents, including the Ground Lease and Memorandum of Understanding, among others. These estoppels indicate that all the terms of these documents are currently being met to the best of the Redevelopment Commission's knowledge. He asked for approval of the three estoppel certificates. Mr. Richard Nussbaum, outside counsel for the Commission, who had handled the review of the Estoppel Certificates and Agreements, provided his comments about the documents. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Ground Lease /MOU Estoppel Certificate and Agreement and authorized Mr. Inks, Director of Redevelopment, to sign the final document. (5) Operation, Maintenance and Easement Agreement Estoppel and Release Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Operation, Maintenance and Easement Agreement Estoppel and Release and authorized Mr. Inks, Director of Redevelopment, to sign the final document. (6) Construction, Easement, Restriction and Operating Agreement Estoppel and Release Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Construction, Easement, Restriction and Operating Agreement Estoppel and Release and authorized Mr. Inks, Director of Redevelopment, to sign the final document. no South Bend Redevelopment Commission Regular Meeting — January 24, 2013 6. NEW BUSINESS A. South Bend Central Development Area (7) Proposal for signage removal at College Football Hall of Fame Mr. Schalliol noted that North American Signs has submitted a proposal to provide signage removal services for the on- building and freestanding signage on the Hall of Fame property. Since the Hall has closed, the city has been working to remove all signage related to it on the Indiana Toll Road, directional signs within the City of South Bend and signage on site at the Football Hall of Fame. There are two large freestanding signs that will need to be removed as well as four logo signs on the building. The proposal also includes removal of all the flags on the gridiron flagpoles and removal of the goal post. The total cost of the proposal is $2,320 and staff requests approval of the proposal. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the proposal for signage removal at the College Football Hall of Fame. B. Airport Economic Development Area (1) Resolution No. 3120 accepting the transfer of real property from the City of South Bend (March 2010 tax sale properties) Mr. Relos noted that at the March 2010 County Commissioner's tax sale, the Commission authorized staff to bid on available parcels in the Ignition Park South Expansion Area. At the sale, staff was able to acquire 18 parcels. Since that time, these parcels have been through the notification process, the court system to gain tax deeds, quiet title action, and finally title insurance to ensure clean title to the properties. At the time of the March 2010 tax sale, the Board of Public Works was the agent which actually acquired the properties because the properties were not yet on the Commission's acquisition list. These properties have since been added to the acquisition list, and can now be transferred into the Commission's name. Approval of this transfer will allow properties in this development area to be commonly owned by the Commission. On January 22 a resolution will be presented to the BPW to transfer these properties, subject to Commission approval accepting them. Once both bodies approve their respective resolutions, deeds will be prepared to complete the transfer. Staff requests approval of Resolution No. 3120. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3120 accepting the transfer of real property from the City of South Bend. (March 2010 tax sale properties) 7 South Bend Redevelopment Commission Regular Meeting —January 24, 2013 6. NEW BUSINESS B. Airport Economic Development Area (2) Memorandum of Understanding by and between Draga investments, LLC and P.B.S. Properties, LLC and City of South Bend, Indiana. Redevelopment Commission (Lot 14, U.S. 31 Industrial Way) Mr. Schalliol noted that in December 2012 Draga Investments, owner of 6139 Parkland Drive, asked the Redevelopment Commission to assume ownership of a common area retention pond on its property. The Redevelopment Commission was the original developer of this industrial park and the retention area was platted into Lot #14 as that was common development law at the time. The retention area serves the adjacent developed lots but also serves as a drainage location for the adjacent roadways. The pond has been maintained by the City of South Bend since it was constructed. The Commission hired Danch Hamer and Associates to prepare a Minor Subdivision to split off from the buildable portion of the lot from the retention basin. The proposed outlot that will contain the retention basin will be owned by the City of South Bend. City Ordinances require the Minor Subdivision process for splitting the property as described above. In order to facilitate the pending land sale between Draga Investments and PBS Properties in a timely manner, the two parties have asked that we memorialize this project in a Memorandum of Understanding (MOU). The purpose of the agreement is to allow both parties the confidence to close the transaction before completion of the subdivision process. The MOU contains the timeline for the project and lays out the commitments by each party. There are no terms or conditions contained within this agreement that are beyond the action the Commission has previously approved. Staff requests Commission approval of this Memorandum of Understanding between Draga Investments, LLC, PBS Properties, LLC, and the Commission. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Memorandum of Understanding by and between Draga investments, LLC and P.B.S. Properties, LLC and City of South Bend, Indiana. Redevelopment Commission (Lot 14, U.S. 31 Industrial Way) C. West Washington - Chapin Development Area There was no business in the West Washington- Chapin Development Area. D. South Side Development Area (1) Proposal for Buxton Scout subscription renewal Mr. Schalliol noted that in June 2010 the Redevelopment Commission entered into a contract with the Buxton Corporation to perform a three component retail study project. The first component updated the 2006 CommunityID by restudying the downtown study node South Bend Redevelopment Commission Regular Meeting — January 24, 2013 6. NEW BUSINESS D. South Side Development Area (1) continued... (Michigan- Jefferson) and a providing a new study node at LaSalle Square. The second component of the project was to complete a grocery saturation study. The purpose of that study was to identify all grocery locations within the county and then create a thematic map that showed where there is over- and under - saturation of grocery stores in the county. The third component of the project was the integration of all past and current data into the Buxton Scout program, a web based data warehouse with a mapping feature that allows the user to gather site distance information, create location maps and warehouse retailer information that is relevant to the site matches of the study nodes. The Scout program allows the user to complete a variety of new tasks such as a new specific site study, retailer profiling against a proposed user, and many other search features. This new tool allows us broader access to all of the Buxton retail clients versus just those that are on the match list. The Commission and the City of South Bend have been clients of Buxton since 2005. Buxton has assisted the City of South Bend with retail planning and study and the match services have yielded specific results on the Ireland Road corridor with Texas Roadhouse and have provided supplemental data to retailers for other locations. The Scout program allows more on- the -fly analysis and research and has great application potential for the downtown and other points of retail study around the city. The Commission has been under contract with Buxton for the Scout program since 2011 and staff is seeking funding for calendar year 2013. The total amount of the contract is $15,000. Staff is requesting to fund this contract from the South Side Development Area TIF budget. Mr. Downes asked for more detail about the way Scout was used for potential developments locally. Mr. Schalliol responded that Texas Roadhouse was on the fence about whether to locate on the south side. The information we provided them from Scout tipped the balance and they decided to do the project. Also, the Walgreens and CVS that located on Western Ave. used the information in their analysis. We don't know the extent to which it influenced them. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Buxton Scout subscription renewal from February 1, 2013 to January 31, 2014. E. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. E South Bend Redevelopment Commission Regular Meeting —January 24, 2013 6. NEW BUSINESS F. Douglas Road Development Area There was no business in the Douglas Road Development Area. 7. PROGRESS REPORTS There were no Progress Reports 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for 9:30 a.m., February 14, 2013. 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 10:08 a.m. Donald E. Inks, Director Lu