HomeMy WebLinkAbout01-24-13 Redevelopment Commission Minutes.docx SOUTH 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.
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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
$528,680.42
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.
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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:
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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
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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
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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 1st 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.
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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)
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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 Harner 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 CommunitylD by restudying the downtown study node
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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.
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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.
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