HomeMy WebLinkAbout2A Redevelopment Commission Minutes 1.12.23
South Be n d
Redevelopment Commission
227 West Jefferson Boulevard, Room 1308, South Bend, I N
SOUTH BEND REDEVELOPMENT COMMISSION
RE-SCHEDULED REGULAR MEETING
January 12, 2023 – 9:30 am
http://tiny.cc/RDC___ or 4th Floor Council
Presiding: Troy Warner, Vice-President
The meeting was called to order at 9:31 a.m.
1. ROLL CALL
Members Present: Troy Warner, VP, IP
Vivian Sallie, Sec., IP
Eli Wax, Comm., IP
Dave Relos, Comm., IP
Leslie Wesley, Comm.,
IP
IP = In Person
V = Virtual
Members Absent: Marcia Jones, President
Legal Counsel: Sandra Kennedy, Esq.
Danielle Campbell-Weiss, Esq.
Redevelopment Staff: Mary Brazinsky, Board Secretary
Joseph Molnar, RDC Staff
Others Present:
Caleb Bauer – DCI, IP
Erik Glavich – DCI, IP
Laura Althoff – DCI, V
Angela Rose – DCI, V
Rachel Boyles – DCI, IP
Zach Hurst – Engineering, IP
WSBT22
Alison Mynsberge – V
Kaine Kanczuzewski – V
Allison – V
Jerry – V
Richard Harte – V
Kate Barrett – V
Conrad Damian – V
Elizabeth Harte – V
Dylan Lambert – V
Tom Hall – V
Chris Lemert - V
Alyson Herzig – V
Hillary Horvath – V
Katrina Marquardt – V
Mike – V
Michael Miller – V
Cara Grabowski, Engineering V
Marilyn M – V
Erica Futa – V
Doug Hall – V
Dan Buckenmeyer – V
Chris Dressel, DCI – V
Jordan Gathers, Mayor Office, V
Frank Perri, V
Anon12 – V
MaryEllen O’Connell – V
Jo Broden – V
William Panzica – V
Michael Szymanski - V
South Bend Redevelopment Commission Regular Meeting – January 12, 2023
Others Present:
Sharon McBride, Council – IP
Kate Bolze, DCI – V
Tim Corcoran, DCI – V
ABC57 – V
JP – V
Robert Moss – V
Marshall C. – V
Jeff Young, DCI – V
Kara Boyles, Engineering, V
Kisha Hoover – V
Robert Moss – V
Bob Jones – V
Leslie Biek – V
Charlotte Brach – V
Maura Johnson – V
Scott Jessup – V
David Francisco – V
Cathy G. – V
Coughlan78 – V
Jim North – V
Shawn O’Brien – V
Tricia Miller – V
Matt Barrett – IP
Richard Nussbaum – V
Marshall Clevenger – V
Rachel Tomas Morgan – Council – V
Maura Johnson – V
Bob Jones – V
Kathy Gauthier – IP
Chris Lemert – V
Tom Hall – V
Shawn O’Brien – V
Robert Moss - V
South Bend Redevelopment Commission Regular Meeting – January 12, 2023
2. Election of Officers
A. Troy Warner nominated Marcia Jones as President of the Redevelopment
Commission for 2023. The nomination was seconded by Eli Wax. The
Commission agreed unanimously, and Marcia Jones was elected President of the
Redevelopment Commission for 2023.
B. Troy Warner submitted his name as Vice-President of the Redevelopment
Commission for 2023. The nomination was seconded by Dave Relos. The
Commission agreed unanimously, and Troy Warner was elected Vice -President of
the Redevelopment Commission for 2023.
C. Troy Warner nominated Vivian Sallie as Secretary of the Redevelopment
Commission for 2023. The nomination was seconded by Eli Wax. The
Commission agreed unanimously, and Vivian Sallie was elected Secretary of the
Redevelopment Commission for 2023.
Vice-President Warner made a motion to move item 7C1 to the top of the agenda
and suspend the rest until after this item. Commissioner Wax seconded the
motion and the commission agreed unanimously to move onto item 7C1.
7. Progress Reports
C. Other
1. Resolution No. 3566 (Commending Donald E Inks)
Vice-President Warner Presented Resolution No. 3566 (Commending Donald E
Inks). The Resolution was read to Donald E. Inks which commended his role as
commissioner and employee with his many years of service.
Commissioner Relos appreciated all the work Don has performed when he was
a staff member and before that as a co-worker for 10+years. Don is truly an
asset for the city and everybody in South Bend.
Secretary Sallie adds her thanks to Don and notes they have worked together
on many committees and commissions over the years. It has been a joy to
work with Don. Don has always put the city’s interest first whenever a decision
has been made. She appreciates all that he has done.
Commissioner Wesley thanked Don for being a great servant of South Bend
and being on the commission. Don’s commitment to the city has been a great
mentorship to her. Great blessing to you in the future.
Mr. Bauer noted that Don served with the city for over 41 years in different
capacities as a member of city staff and commissioner; thank you Don for over
4 decades of service to the City of South Bend.
South Bend Redevelopment Commission Regular Meeting – January 12, 2023
Commissioner Wax notes that it has been a pleasure working with Don for the
past couple of years on Commission; he appreciates Don’s very thoughtful
insight. If you had something to say, it was something worth listening to.
Wishing you success in all your future endeavors.
Sharon McBride, President, South Bend City Council congratulated Don Inks
and wishes continued success and thanked him for all of his years of service to
the community and to the city.
Richard Nussbaum, practicing lawyer in South Bend at 210 S Michigan Street
46601. He notes he is coming up on an anniversary February 1, 1988 when he
became an attorney in South Bend and frankly doesn’t know a heck of a lot
about municipal law. He will always be internally/eternally grateful to Don for
his patience. There are a lot of people that do great things for the city quietly
behind the scenes; if he were to write a b ook about those people, Don would
certainly be in the book. Richard thanked Don personally and professionally for
himself and what he had done for every citizen of the city.
Upon a unanimous motion by the Commission Resolution No. 3566
(Commending Donald E Inks) is approved and submitted on Thursday, January
12, 2023.
Donald E Inks stated that he has known some of the commissioners for a long
period of time and some not so long, but he knows one thing about all of you is
that you have the interest of the city at heart and spend your time and energy to
see those interests fulfilled to make South Bend a better place for all of its
citizens. It has been a privilege and an honor to serve with all of you.
3. Approval of Minutes
A. Approval of Minutes of the Regular Meeting of Monday, December 19, 2022
Upon a motion by Commissioner Wax, seconded by Secretary Sallie, the
motion carried with Mr. Relos abstaining since he was not in attendance , the
Commission approved the minutes of the regular meeting of Monday,
December 19, 2022.
4. Approval of Claims
A. Claims Submitted for December 6 and December 13, 2022
Upon a motion by Commissioner Wax, seconded by Secretary Sallie, the
motion carried unanimously, the Commission approved the claims for
December 6, 2022.
Commissioner Wax asked about the last item on December 13, 2023, claim.
South Bend Redevelopment Commission Regular Meeting – January 12, 2023
Laura Althoff replied the amount was for various projects being performed at
Seitz Park including concrete and excavation work. There are payments for
some lighting, extra retention for the sea wall and plumbing and electricity for
the restrooms.
Upon a motion by Secretary Sallie, seconded by Secretary Vice-President
Sallie, the motion carried unanimously, the Commission approved the claims for
December 13, 2022.
5. Old Business
A. Update 300 E LaSalle (Developer)
Caleb Bauer, Executive Director, Community Investment. Mr. Bauer stated that at
the request of the Commission, a letter was sent certified mail to David Matthews,
developer of the 300 E LaSalle Building, a little over two weeks ago. A letter was
received in return that was shared with the Commission as to why the developer
would not be attending today’s meeting, but he did extend an invitation for a tour.
A number of Commissioner’s and Mr. Bauer offered to tour the facility on
Wednesday, January 11, 2023 but the developer said they were too busy and
would be unable to make time. Unfortunately, we won’t be hearing from the
developer today.
There have been some developments since the commission last met. A so-called
grocery store was opened by the developer without a certificate of occupancy and
without the appropriate retail food licenses. My understanding is that it was open
for less than one day before receiving a violation from the buildin g department for
occupying a space without a certificate of occupancy. Since that time, it has been
closed. Referring to the addendum of the development agreement with the
developer it does not meet a number of the requirements including the types of
food purchased based on our limited understanding as Mr. Bauer has not been
able to access the space, but as well as it did not have the necessary licenses to
operate which was stipulated in the addendum to the development agreement.
This item was opened by Vice-President Warner for questions by commissioners to
Mr. Bauer or to our city legal team. A few members of the public have also asked
to speak, so we will then open it up for public comment and then bring it back to the
Commission.
Commissioner Relos asked it if any of the commissioner’s have been into see the
space.
Mr. Bauer answered that Building Department Inspectors have been inside the
space as the developer requested a final inspection on either December 27 th/28th.
They did enter the space and conduct some inspections but were not able to issue
a certificate of occupancy because the space was incomplete.
Commissioner Relos asked what the square footage of the grocery store was
supposed to be.
South Bend Redevelopment Commission Regular Meeting – January 12, 2023
Mr. Bauer noted the space, as it was contemplated in the plan submitted, would
have been 6,000 square feet. Mr. Bauer did not measure the existing space but
believes that it does not meet the 6,000 square foot requirement.
Mr. Relos asked if it just contained dead walls.
Mr. Bauer stated that was correct, unfinished.
Commissioner Wax asked if the position of the city was default or breach of
contract.
Ms. Kennedy stated yes, breach of contract.
Commissioner Wax asked if there is a notice requirement under the agreement.
Ms. Kennedy stated there is. Some requirements of the agreement do not require
notice and others do require notice. What would require a notice is if the
commission is asking for the return of the $5M investment plus the additional
$2.5M claw back. That would require notice. There’s no notice required if he did
not substantially complete the project by the deadline date, which was December
31, 2022.
Vice-President Warner upon hearing no more questions from the commission,
explained that he would open this item up to the public. Public comment is limited
to three minutes with residents stating their name and address. The process
started with individuals in-person then moved online.
Scott Jessup, 327 S Francis Street #8 in the River Walk neighborhood by Howard
Park. Mr. Jessup noted he is 68 years old and retired from the University of Notre
Dame. He is a lifelong resident of South Bend. Never in his life has he spoken to a
government official at city, state or federal level. Maybe the occasional police
officer, but other than that he has never been motivated to come in and address
anybody but he is motivated today. Mr. Jessup states that he sent each of the
commissioners an email last night. In case it was one of those too long emails that
did not get read he will paraphrase the important parts. He has experience with
David Matthews as he purchased a townhome from David built at Ivy Quad in
2016. It was delivered six months late and unfinished. It was a very unenjoyable,
unimpressive experience. Mr. Jessup was on the board of Ivy Quad when they had
to pursue legal action against David for failure of material s and workmanship. After
many, many efforts to resolve the issue, they had no other choice. Mr. Jessup’s
understanding is that it is still unresolved (he has moved since). Mr. Jessup’s
understanding is that David applied for and received $5M from the city in support of
his project. That is about $50 per resident in South Bend. He also received a
$4.9M from the state so in total David received $10M under the understanding that
he would develop a project that included a fully functioning grocery store and
pharmacy in a neighborhood that needs it. It is a food desert and David
understood the importance of this and this was where the public and private come
together to serve the public. David’s cynical display on the 31 st of the soft opening
South Bend Redevelopment Commission Regular Meeting – January 12, 2023
of an incomplete grocery store that featured Pringles and Ritz crackers is simply a
challenge to everybody’s intelligence and integrity. We know where we stand. We
know what we are dealing with. I think it’s incumbent upon the city to take every
remedy possible to hold him accountable, responsible and get the city and state’s
money back plus appropriate penalties. Thank you for your time.
Matt Barrett, 110 S Niles, I've stood before this board since last June, asking for
accountability. I have sent you a lengthy e -mail. I again want to highlight that the
city’s core values are excellence, accountability, innovation, inclusion, and
empowerment. The “grocery store” is not excellent and this is about accountability,
accountability, and accountability, and I hope that today is a good day for
accountability in South Bend. Thank you.
Kathy Gauthier, 221 E Colfax SB at the East Bank Townhomes. She understands
that the conversation today is directly focused on the grocery store and pharmacy.
She respectfully suggest that the commission take a step back and look at the
context. David has done the multi-use building at that place without partnering with
a team. There was to be River Race Flats plus a multi-use building and what you
have there now is a disaster parking lot that is unpaved (it was once paved). And
then we have the disparagingly called Stonehenge that stopped construction in
2017 which was also to be a multi-use building which we taxpayers can take back
$5M I understand. So you have three multi-use buildings in the East Bank area
within South Bend so there has not been a good partnering with the city, or with the
neighbors. I’d like to point out Warsaw also had a multi-use building effort with him
on their river. He was to start demolition. It was only half completed when the city
of Warsaw jumped in and said the delays had been enough and they completed
the work themselves. They awarded the job to another developer. She kindly
suggests that as a community and taxpayer s that we consider the context of the
multi-use buildings. He has not successfully partnered with the city, with the
community. I don’t think multi-use buildings are his forte. The Indiana Supreme
Court said he and his wife are responsible for repairs. Thank you.
Sharon McBride, President South Bend City Council, as part of a press release that
I sent out yesterday it states that over the last decade, Mr. Matthews has build a
career on city financial assistance for multiple projects, including being handed
numerous city lots for $10 dollars, given tax abatements and then given tax dollars.
The city has improved its efforts to provide those same assistance to women and
minorities working towards equity and inclusion in its development incentives. This
matter highlights the need to continue to grow those inclusion efforts. Matthews
has in no small part created his successes and wealth due to the city’s assistance
and now the city needs to hold Mr. Matthews accountable for his broken promises
and enforce the contract. And having $10M and particularly $5M of taxpayer
dollars is a disgrace and I ask that the commission and the city hold him
accountable. Thank you.
South Bend Redevelopment Commission Regular Meeting – January 12, 2023
Richard Nussbaum, attorney in South Bend, 210 S Michigan Street. I don’t want to
beat a dead horse here but a couple of observations. I am really impressed by the
fact of how many council members are here this morning. I think that reflects the
seriousness with which the city is taking this. I do have every confidence in our city
legal department. I know the commission has retained counsel and I have great
confidence in that counsel. We have reached a point where we need to take action
and I believe that this commission will do the right thing. Claw backs are never a
preferred remedy, but they’re a necessary remedy because there is a fiduciary duty
of the city and a fiduciary duty on the part of the recipient of those funds to do what
they’re used for. Public dollars are very difficult to come by and this is a gregarious
breach of a development agreement that I’ve ever seen, and I’ve been around a
long time. Thank you for your time m aking this opportunity. I am not surprised that
Mr. Matthews didn’t show up. He hasn’t showed up for anything that we have
invited him to, and Mr. Warner, you are very aware of that because you’ve invited
him a number of times for neighborhood meetings. He just doesn’t show up.
That’s not a breach of his contract with the city but it is a breach of just good
common sense and being a good citizen. Thank you.
The Commission moved to the online public comment portion.
Mary Ellen O’Connell, 129 W North Shore Drive so an easy walk to 300 LaSalle
where apparently I will not be buying groceries or pharmacy items. I have three
very brief points in everything that has been said so far. The uncertified, temporary
tables and the few freezers being passed off as a grocery store, let alone a grocery
and pharmacy, really showed contempt for this Commission and for the city and for
its residents and all we've done to try to support Mr. Matthews's plans. It's
consistent with his other failures. We've heard about seve ral of those just now. I'll
just briefly add a few more. His failure to keep the property around the Emporium
building, including the boardwalk in safe and usable condition. His violations of
building codes and city ordinances for the Madison Center passe d off as housing
for the un-housed. His Redevelopment Commission actions have been taken to
him for the variety of unfinished projects that we've heard about, et cetera. If he is
allowed once again to avoid the claw back provisions of this contract, this will be
not only a failure with regard to accountability in his case, but it sends a message
to other potential partners and development groups that the city wants to support in
future for the really vital work that you're doing. We can see the future for South
Bend and it is so bright because of everything that's Commission and other
members of our city and County Council have done. It's not the time to allow this
sort of ongoing problematic developer to walk away from his commitments. It sends
the wrong message to others. We want to maintain a high level of commitment and
accountability. Compliance with our contracts. Otherwise, how do we enforce and
maintain those high standards in the future? That's the point I really want to
emphasize why it's imperative at this meeting. The decision for the claw back
action go forward. Thank you for your time and for your service.
South Bend Redevelopment Commission Regular Meeting – January 12, 2023
Alyson Mynsberge, 2633 Arrowhead Drive on the far west, north west side and
somewhat close to Meijer, Aldi’s and Walmart which are all larg e super stores that
are not really traditional grocery stores. When I moved back to South Bend before
the pandemic in late 2018, I had grown up in South Bend then having come back to
visit family and help my mom stack the grocery shelves with bread at the Portage
meat market back when it had been Martins, but also when it was the Portage meat
market. When I chose to move back to South Bend I returned to the west side
where I had grown up and had been sold on the idea that this city had improved. I
was excited to move back and to be able to bike in the city as I had in the other
places, I lived in the past 20 years. Instead, the Portage meat market that I biked
to was gone. I have been told repeatedly that there is no relationship between the
loss of the grocery store at Elwood and Portage and this project. However, in
January 2017 the South Bend Regional Chamber said it is tricky for grocery stores
to figure out how to get downtown for a whole host of reasons. That was at the
time that this deal was reached. It was in June 2017 that Martins on Portage
announced it would close Martins at Elwood and Portage and replace it with
Portage meat market. The Portage meat market closed shortly before the
pandemic which sent pandemic EBT cards and snap food be nefits into the hands
of all of the residents in that area who send their kids to public schools. I think that
an influx of funding would have helped sustain a proper Martins or even the
Portage meat market. Instead, the Redevelopment Commission has spent $5M
supporting Dave Matthews to build a downtown grocery on the claim that that it
was a food desert. Now we have another food desert in South Bend, because of
the loss of the store at Portage and Elwood. Not only that, but we've decreased the
livability of the neighborhoods that we already had that were already functioning. I
believe it is imperative that this money be clawed back and that the City
Redevelopment Commission pursue better plans in the future using that money to
help encourage grocery stores in existing food deserts and in low-income areas.
To build back, so instead of taking the idea of putting a new grocery store below
luxury apartments, it would have instead helped provide the funds for an existing
grocery store to stay in the neighborhood that so desperately needed its services.
That is my concern and I hope that you guys will consider that and look at the past
to see the mistakes and learn from them. It's not a blame game. It's about learning
from past mistakes and doing better for the city in the future. Thank you.
Jo M. Broden, 201 W North Shore Drive in the 4 th District. I have a history with this
project as a formal councilmember representing the 4 th district. I want to
emphasize that every comment that has been made by eve ry neighbor, whether in
person or virtual, is accurate and on point. T he driving factor in funding
unprecedented level of funding and the tax abatements, whether it was from the
city or regional cities or even private investors, was the full-service grocery store,
the pharmacy space office and retail; that was proposed and promised, and
commitments made in development agreements with this developer. You have held
other developers to account and it is way past time to hold this developer to
account. Regional cities should be at our table on this, and I do agree with others in
this meeting that the city and the state investment plus penalties should be what we
should seek as a remedy. It is an egregious breach of the contract. If the developer
will not come before you and has refused to come before you and has not been
South Bend Redevelopment Commission Regular Meeting – January 12, 2023
present at meetings on site, at some point, it's time to just say enough. We've had
enough as a community proceed to the legal process and advanced remedies in
accordance with that, I concur with all those who have spoken about this being
bigger than just this project. When we invest as a city, we make choices. Some of
the choices were made just last night at a neighborhood meeting , that brought
together all the neighborhood groups; We learned that 20% of traffic calming
measures within the city of South Bend will be left unmet. We know that a
functional full service public transportation system will be unmet. We need to invest
in things that truly improve our community, advance our workforce and our ability
for everyone's income to rise and the quality and the benefits of strong investments
that are outlined in development agreements that you make need to be upheld and
we need to set that as a high standard. And, if we don't chase this to its full
conclusion in the form of very strong documents that that staff and the city has put
together and again also the regional cities, then we do send a poor message to
other developers who want to work with the City of South Bend.
David Francisco, attorney with office at 712 E Jefferson. This has been probably
the 4th or 5th meeting that I’ve taken time out to express my displeasure for what
Mr. Matthews has done. I don’t have anything substantive to add. When I look at
this and there are about 48 of us that are online that have taken time out of our day
to voice our opposition to what Mr. Matthews is doing rather than what he has
done. I think the only way you are going to stop this is by taking that money as a
claw back. I don’t know exactly how much is at stake but all of us bothered to show
up and Mr. Matthews did not. I would respectfully request the commission take
action and get that money back. Thank you.
Caleb Bauer, Executive Director, Community Investment, this isn’t standard
protocol for the Commission but if you would be willing, we could offer a
recommendation to you.
Vice-President Warner asked if there was anyone that wished to speak to this item.
Marshall Clevenger, 300 E LaSalle Street, I live on the 9 th floor. I am a little
ignorant about the entire process. I moved to South Bend a year ago and I moved
here based on, well my businesses are out-of-town and my buildings are out of
town that I own; I moved here based on the marketing scheme that was put on and
I thought I was moving into where there was a grocery store and a pharmacy and a
rooftop pool. All of those things. After promises being made about those things
coming and I understand materials, engineering and construction being slowed
down through this economic period of time. I will say that it was a very appealing
property for people to move to town. I wanted to make South Bend my home, just
me and my 3-year old daughter that was a good space for us. The River Park area
is very nice. The people are very nice. It is great to b e around there. Whatever the
legal ramifications are for this project not moving forward and not meeting its
commitments, I do hope that these types of projects do continue for this town.
They are very appealing from an outsider. I didn’t know much about South Bend, I
did a lot of internet research before I came here to look at properties. The potential
of that building, the potential of that neighborhood is a beautiful thing for the city.
Moving forward, whatever the steps are, whatever happens there, I understand. I
would also just keep in mind that these are the things that are bringing people to
South Bend Redevelopment Commission Regular Meeting – January 12, 2023
town, myself included. I have several friends interested as well. On a positive
note, moving forward is something that could be great but it is going to take
everyone fulfilling their promises and commitments . I understand the legal action
you have to do on the contractual side, I just hope that it works out for the benefit of
the East Village. Thank you.
Caleb Bauer, Executive Director, Community Investment. From our perspective
this is about commitments that the city made as a commitment as part of this
original development agreement and the commission and the staff that supports
the commission have upheld that commitment. That $5M in tax increment funds
went towards construction of portions of the building we see today. This is about
upholding those commitments and the developer also made commitments in that
original development agreement as we have all heard and seen today. A number
of those commitments remain unmet so from the perspective of the Department of
Community Investment and the administration as a whole, we would recommend
that the commission make a motion to authorize the city legal department to
engage with outside counsel and enforce the terms of the agreement and the claw
back provision. Thank you.
Secretary Sallie states that she supports the suggestion from Mr. Bauer and would
like to make a motion.
Vice-President Warner clarified the motion stating we have a motion to enforce th e
contract and authorize the city attorney to take the necessary legal action; including
sending necessary notice, retaining outside counsel and filing litigation; and return
of the funds and any penalty.
Commissioner Wax asked if there is an appropriation necessary of is it already part
of the budget.
Mr. Bauer states that this will utilize city civil funds that we may return to you for an
appropriation at a later date if you were to authorize the motion.
Vice-President Warner seconded the motion and clarified that we have a motion
authorizing enforcement of the contract and authorizing our Corporation Counsel to
act on behalf of the Redevelopment Commission to send necessary notice, retain
outside legal counsel, file litigation action and dealing with claw back of the
agreement.
Vice-President Warner stated that today is the sixth anniversary of when the
agreement was signed and promises were made. Mr. Matthews has had three
extra years in addition to the original time he has had to complete this. This body
has put him on notice at various points of the year that we were watching and had
expectations. I think when we see him put a cheap theatrical attempt of sawhorses
and plywood together at the last minute when he has been on notice for at least s ix
months when we were expecting something or at least trying to get him to come
and talk to us shows no real attempt is going to be made. I think we also have a
fiduciary duty. I have heard a lot of people say that the city should act. We or the
body that has to act on behalf of the city have a duty to do so. I support taking this
South Bend Redevelopment Commission Regular Meeting – January 12, 2023
action.
Commissioner Wesley states that, I am disheartened, and I cannot believe what I
am hearing. I was not part of the Redevelopment Commission six years and I am
going to leave this with everyone’s equity. The minority businesses: the women in
businesses have to be vetted through a process. What am I hearing? From
everyone and I appreciate all the emails from the public and the phone calls
because I had no idea that the tax money that this type of partnership, that the city
engaged with a developer. When I am talking to other developers and also other
minority businesses that can’t get supported and how over the years you would
allow for someone to be able to get $10M, $5M which are taxpayers dollars to
develop a project where letters are constantly sent and he is refusing but yet we
are not equitable in making sure that our start -up businesses have the opportunity
and those who have born and raised in South Bend not be able to get any dollars.
Allowing a developer to tell you when they’re going to come to a meeting and when
they are available. It’s just unheard of. I hope this is a lesson that we start from
today, whatever the commission decides to do at the vote t hat we put in place a
system of accountability and make sure everyone gets a fair chance at using
taxpayer dollars for developments. I am very upset as a taxpayer and my heart
goes out of downtown. We do have a food desert. If that promise wasn’t met th en
we have to take measures, legal measures to fulfill a promise. Let this be a lesson
to those who gave him the money also and allowed him to receive over $10M.
Shame on you.
Commissioner Wax states that this isn’t about the developer. O ur job here as
commissioners is to look out for the best interests of the city, as I think we heard
before that we have a fiduciary responsibility to look out for the commission and the
city’s best interest. It’s not about personalities. While other issues may color how
we view things, it's not about all the other topics that we've discussed. It's with this
specific agreement. How do we put the city's best interests forward? Today, from
where we are I do believe that pursuing this path is how we put the city's best
interest first.
Upon a motion by Secretary Sallie, seconded by Vice-President Warner, the motion
carried unanimously, the Commission approved authorizing enforcement of the
development agreement, authorizing Corporation Counsel to act on behalf of the
Redevelopment Commission, sending necessary notice of the breach of contract,
retaining outside legal counsel, file litigation action and dealing with claw back of
the agreement on Thursday, January 12, 2023.
6. New Business
A. Redevelopment Fund (aka Pokagon Fund)
1. Budget Request (High Skill Immigration Fund)
Mr. Bauer Presented a Budget Request (High Skill Immigration Fund). Before
you is a request for $300k to come out of the Redevelopment General also known
as the Pokagon Fund. What we're hoping to do with these funds is to pilot a new
high skilled immigration fund that would be a partnership between the city and
then focus to develop a matching grant program for employers who are interested
South Bend Redevelopment Commission Regular Meeting – January 12, 2023
in pursuing H1B visas. This is something we have heard from employers that is of
interest to them in terms of filing high skill positions. H1B visas are available for
positions with technical skills required. The visas are awarded in a lottery system
so an employer could sponsor an individual for an H1B visa, and that individual
might meet all of the qualifications. That individual might not be selected from the
lottery and if that employer sponsored that individual they are out what could
range at six to eight thousand dollars of that sponsorship. We are looking at what
we can do to incentivize employers that have never tried. There are a lot of
employers who have never tried due to the risk of not being chosen. We are
looking at the number of employers who are interested and looking to reduce the
risk to the employers. This funding would help to set up some educational
opportunities for employers to learn about the process. We are excited about this
and hope the legislature chooses to fund Ready 2.0; we would hope to apply for a
larger grant amount in a round later this year or next year. This is our chance to
pilot this proof of concept and really see what kind of interest we can get from
employers on a matching grant program. Commission approval requested.
Commissioner Wax asked if Mr. Bauer had details of employers that were not able
to fill high skilled positions either from local talent or national talent.
Mr. Bauer stated yes we have seen this in some manufacturers as well as the
healthcare industry there are a number of staff shortages. Locally we know
there’s an interest in exploring the HIB process as a solution for some staffing
challenges.
Commissioner Wax asked if all businesses are eligible for this or would it be
focused on smaller businesses. I don’t think we need to be off-setting business
expenses.
Mr. Bauer states this is a piece the city is still working on. The employer would
only qualify for a certain number of the matching grants. Depending on the
business size, we would cap the number of matching grants received. We are
really focusing on smaller employers that are willing to try three sponsorships.
Secretary Sallie asked what the length of the program would be.
Mr. Bauer stated that we are looking at a two year pilot program but we may
extend the funds.
Secretary Sallie would like an update as time goes on and asked if any other cities
are using this program.
Mr. Bauer states there are some other cities that have looked at the process and
there are some similar grant programs. We hosted one earlier last year that had a
great attendance.
Secretary Sallie asked what the rationale for using the Pokagon Fund would be.
Mr. Bauer stated that our rationale is the Pokagon funds focus on combating
South Bend Redevelopment Commission Regular Meeting – January 12, 2023
poverty and also on growing South Bend. We believe that by helping to solve
issues for employers and also bringing new residents into South Bend, is really
going to help the community as a whole as we grow. As we've discussed before,
our community does face challenges based on our population on. Maintenance of
our underlying infrastructure and so our overarching goal is to continue to grow the
population of South Bend. We believe this is one way that we can do that.
Secretary Sallie noted that is why she asked about the Pokagon Fund since they
are supposed to be used to offset poverty in our community. We are talking about
bringing people from outside into the community to participate in the program.
Working with people that are already here might be a benefit to this program.
Mr. Bauer stated that we have explored with some other partners other than
EnFocus that are looking at helping people locally who are looking for certain
certifications. We have been doing that through our upscale South Bend program
which is able to cover a significant portion of the cost of a new certification for a
number of different certifications. Our thought is growing South Bend’s population
and helping employers solve their staffing challenges.
Commissioner Wax asked if this is going to be done internally?
Mr. Bauer states that the program will be contracted to a third party with EnFocus
to assist administering some of the funds and setting u p the workshops,
information sessions, etc.
Commissioner Wax asked out of the $300k do we have a breakdown between the
administration slash education portion versus the grant.
Mr. Bauer stated roughly $50k would go towards the underlying support from
EnFocus; we have earmarked around $30k to $40k for the cost of hosting the
workshops although that could end up being lower.
Commissioner Wax states that at least 2/3 would be for the core program.
Mr. Bauer stated that is correct.
Rachel Tomas Morgan, Councilmember, 114 Chapin Street; I was expecting to
speak on another issue today, but there is plenty here who are able to speak
about that issue. I just want to share that this is an exciting pilot. I was involved in
some previous conversations about such ideas a couple years ago. I want to
share as a daughter of an immigrant who moved to this country from the
Philippines, who came in on a visa and then as he raised his family and moved to
another visa in order to stay in this country and to serve his community. My father
was that immigrant. I have been here in this community, a part of support letters
for such individuals on H1B visas and know that we have people in our community
who have come to South Bend on a visa who are highly skilled from their
countries. High levels of education and could serve and work in our community
should they pursue H1B visas. I think this is a great example of how we could
attract but also retain talent that is in South Bend and would support this initiative
South Bend Redevelopment Commission Regular Meeting – January 12, 2023
and ask for your support. Thank you.
Upon a motion by Commissioner Wax, seconded by Vice-President Warner, the
motion carried unanimously, the Commission approved Budget Request (High
Skill Immigration Fund) submitted on Thursday, January 12, 2023.
B. South Side Development Area
1. Budget Request (Fire Station No. 8)
Mr. Hurst Presented Budget Request (Fire Station No. 8). This is a budget
request for the remainder of an intended $3.5M allotment to cover the demolition
and replacement of Fire Station No. 8 on the south side of town. We have gone
through a schematic design process previously funded through the
Redevelopment Commission and have arrived at a proposed new two-story
station that measures about 7,000 square feet. The demolition of the existing
building is estimated at around $50k. The largest chunk would be the construction
of the new station. At $3.8M. And that does leave us a little bit of construction
contingency to work with. And then overall, this total request between the previous
schematic design and this current request is $3.5M. Commission approval is
requested.
Commissioner Wax asked for more information on the expansion provided over
what there is currently.
Mr. Hurst stated that it is a lot different then most fire stations. This on e is located
in the middle of a neighborhood and without signage you wouldn’t know it is a fire
station. It is roughly the size of a residential home. The existing facility does not
have separate restrooms. We know now that this is part of their physica l and
mental well being and we want them to be at their best. The process was to come
up with a floor plan that can comfortable house all the firefighters both male and
female. Our base bid was for a one bay firetruck but an alternate two bay bid will
be an expected $200k to $250k more that would house a medical vehicle. We
want to ensure that the facility is not too large to overwhelm the residential
neighborhood.
Commissioner Wax asked if the bid was hopefully to find a bid for the two bays?
Mr. Hurst stated that is the approach right now. We do have the one bay funded
but that is where we are ultimately headed.
Commissioner Relos asked is this to be added onto the existing building?
Mr. Hurst stated no this will be a full demolition.
Vice-President Warner stated that we have updated several stations from the
50s/60s. How many are left?
Mr. Hurst stated it is his understanding Fire Station No. 7 will be next. After that
he is not sure what will be next.
South Bend Redevelopment Commission Regular Meeting – January 12, 2023
Commissioner Wax noted that he grew up on the same block as Fire Station No.
8. It is really well known by the community. The firefighters considered
themselves part of the community. Being able to update this is important to the
community. It provides a safe and comfortable environment. I do think that it is
important as much as possible to do the expansion and provide for the better
needs of the firefighters so they can take care of the community they s erve.
Having that second bay for the emergency vehicle would be really helpful. I
encourage that we pursue that.
Upon a motion by Secretary Sallie, seconded by Vice-President Warner, the
motion carried unanimously, the Commission approved Budget Request (Fire
Station No. 8) submitted on Thursday, January 12, 2023.
2. First Amendment to Development Agreement (Miami Hills)
Mr. Hurst Presented First Amendment to Development Agreement (Mi ami Hills).
The original Miami Hills agreement stated that the commission would contribute
$1M towards replacing windows and installing vinyl siding at the complex. BPW
attempted to open bids in June of 2022; no bids were received. In accordance
with BPW policy we started an open market solicitation to find a contractor. Time
was spent meeting with MWBE and local contractors in the area, even down in
Indianapolis. The most reasonable price was from a contractor in Atlanta that has
an existing relationship with Miami Hills apartment ownership team. He has done
work with them already. This amendment modifies the funding amount up to just
under $1.6M. The Miami Hills group would reimburse the city the difference in the
original amount. They are ready to wire us the money upon receipt of approval
that will allow us to route this back through BPW to finalize a contract with H&H
renovations to do the window replacement and siding installation. Commission
approval is requested.
Commissioner Wax asked for the timeline of completion.
Mr. Hurst stated it will hopefully be completed by the end of summer 2023. We
are seeing minor delays in window delivery, but the intent is to finish in 2023.
Commissioner Wax asked about the developer’s portion of spending $2.6M on the
buildings. Has that happened?
Mr. Hurst knows reports have been submitted but does not know the total spent to
date. They are working to meet their obligations.
Matt Barrett, 110 S Niles asked has the developer complied with the obligations in
Section 4.6 on periodic reports. One was due on December 31 st. He asked if they
have hired local contractors and asked about the progress construction status
report including itemized accounting and identifying the private investment to date.
Mr. Barrett asked if there is a net cost of $1M whey is there a need to come back
before the Redevelopment Commission? Can contracts just be approved in the
future if the developer is going to contribute the additional $600k?
South Bend Redevelopment Commission Regular Meeting – January 12, 2023
Mr. Hurst noted that for accounting and auditing reasons the city needs to provide
a number trail when we enter into a $1.6M contract where do the $600k come
from. That is why it needed to be amended to show that the bids came in higher
than what was expected.
Vice-President Warner stated that commission would appreciate a report back on
this and other projects.
Mr. Bauer states they are confident that work is being done as stated and
apologized for not having a report available.
Vice-President Warner stated that a few years ago Miami Hills was at a critical
deterioration level and we are excited about getting this new owner in to stabilize
and improve the units and improve the security. There has been a lot less serious
violent incidents over the last year.
Commissioner Wax states it is exciting to see the improvements at Miami Hills
with the inhabitants of the residents and the security. There is still room to
progress, but he looks forward to seeing for the first time in a long time that things
are moving in the right direction and hopes things will continue on that path.
Upon a motion by Secretary Warner, seconded by Commissioner Sallie, the
motion carried unanimously, the Commission approved First Amendment to
Development Agreement (Miami Hills) submitted on Thursday, January 12,
2023.
C. South Side Development Area
1. Resolution No. 3567 (2023 Meeting Schedule RDC)
Vice-President Warner Presented Resolution No. 3567 (2023 Meeting Schedule
RDC). Commission approval is requested.
Upon a motion by Secretary Sallie, seconded by Vice-President Warner, the
motion carried unanimously, the Commission approved Resolution No. 3567
(2023 Meeting Schedule RDC) submitted on Thursday, January 12, 2023.
7. Progress Reports
A. Tax Abatement
B. Common Council
C. Other
Commissioner Wax asked about the housing credits.
Mr. Bauer stated IHCDA normally awards these in November. Because of
interest rate increases over the time of the application period and their processing
period, they have requested that all applicants re-submit their financing packages
and move the award date to January 26, 2023. We will let you know when we
have a final decision from them.
South Bend Redevelopment Commission Regular Meeting – January 12, 2023
Mr. Barrett thanked the commission for the vote to enforce the contract at 300 E
LaSalle. He noted that there are two other contracts that are still issues. One at
228 Sycamore and the former Traeger site. Stonehenge remains a one -story
shell. He hopes that the commission also enforces that contract. He respectfully
requested an add to the motion to enforce the Trager site as the developer
continues to hold the land for speculation. There was a notice of default in
September 2021 with no action taken. There are more than $100k in fines that
have accrued for the vacant lots on that site. The fines were appealed with the
Superior court dismissing the appeal without prejudice and the developer has not
appealed within the time period. I believe it is time to move forward on those two
contracts. The reality is great things are happen ing here, but these properties are
an impediment to future development.
8. Next Commission Meeting:
Thursday, January 26, 2023
9. Adjournment
Thursday, January 12, 2023, 11:01 a.m.
Vivian Sallie, Secretary Marcia Jones, President