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Home My WebLink About1 RDC Packet 6.22.23South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Agenda Regular Meeting, June 22, 2023 – 9:30 a.m. https://tinyurl.com/RedevelopmentCommission or BPW Conference Room 13th Floor 1.Roll Call 2.Approval of Minutes A.Minutes of the Regular Meeting of Thursday, June 8, 2023 3.Approval of Claims A.Claims Allowance 6.14.23 B.Claims Allowance 6.20.23 4.Old Business A.None 5.New Business A.River West Development Area 1.Budget Request (Coal Line Multiuse Trail Phase III Design) 2.Resolution No. 3575 (Approving R Ray Real Estate (Masterbilt) Settlement) 3.Budget Request (SBCC Traffic Impact Study) 6.Progress Reports A.Tax Abatement B.Common Council C.Other 7.Next Commission Meeting: Thursday, July 13, 2023, 9:30 am ITEM 1 South Be n d Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, IN SOUTH BEND REDEVELOPMENT COMMISSION SCHEDULED REGULAR MEETING June 8, 2023 – 9:30 am https://tinyurl.com/RedevelopmentCommission or BPW 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, Vice-President – IP Vivian Sallie, Secretary - IP Eli Wax, Commissioner - IP David Relos, Commissioner – IP Leslie Wesley, Commissioner - V IP = In Person V = Virtual Members Absent: Legal Counsel: Sandra Kennedy, Esq. Danielle Campbell, Asst. City Attorney Redevelopment Staff: Mary Brazinsky Sears, Board Secretary Joseph Molnar, RDC Staff Others Present: Caleb Bauer Erik Glavich Rosa Tomas Charlotte Brach Zach Hurst Leslie Biek Alex Sejdinaj Jim Conklin Matt Barrett DCI DCI DCI Engineering Engineering Engineering Code Works Cultivate Resident ITEM 2A South Bend Redevelopment Commission Regular Meeting – June 8, 2023 2.Approval of Minutes •Approval of Minutes of the Regular Meeting of Thursday, May 25, 2023 Upon a motion by Secretary Sallie, seconded by Commissioner Relos, the motion carried unanimously, the Commission approved the minutes of the regular meeting of Thursday, May 25, 2023. 3.Approval of Claims A.Claims Allowance 5.23.23 Upon a motion by Commissioner Relos, seconded by Vice-President Warner, the motion carried unanimously, the Commission approved the claims allowance of May 23, 2023. 4.Old Business 5.New Business A.River West Development Area 1.Resolution No. 3575 (Disposition Offering Price 1202 S Lafayette) Joseph Molnar noted that this property has already been through the disposition process and asked the Commission to table this item at a later date. Upon a motion by Commissioner Wax, seconded by Vice-President Warner, the motion carried unanimously, the Commission tabled items 5A1, 5A2 and 5A3 related to the property at 1202 S Lafayette submitted on Thursday, June 8, 2023. 2.Approval of Bid Specifications (1202 S Lafayette) Joseph Molnar noted that this property has already been through the disposition process and asked the Commission to table this item at a later date. Upon a motion by Commissioner Wax, seconded by Vice-President Warner, the motion carried unanimously, the Commission tabled items 5A1, 5A2 and 5A3 related to the property at 1202 S Lafayette submitted on Thursday, June 8, 2023. 3.Request to Advertise (1202 S Lafayette) Joseph Molnar noted that this property has already been through the disposition process and asked the Commission to table this item at a later date. Upon a motion by Commissioner Wax, seconded by Vice-President Warner, the motion carried unanimously, the Commission tabled items 5A1, 5A2 and 5A3 related to the property at 1202 S Lafayette submitted on Thursday, June 8, 2023. South Bend Redevelopment Commission Regular Meeting – June 8, 2023 B.Redevelopment General Fund (Pokagon) 1.Budget Request (Digital Storefront Program) Caleb Bauer Presented a Budget Request (Digital Storefront Program). The Digital Storefront Program, which was originally piloted in 2021, will provide technology assistance grants to small businesses to help them create or enhance their digital presence with the goal of increasing revenues and allowing business owners to drive growth with new technology tools and systems. We are requesting $300k from the RDC General fund with a matching grant from READI. This will allow sixty small businesses to be assisted through the program by 2025. Alex Sejdinaj, Co- Founder, Code Works notes that they design building and launching products in a digital space. The grant and matching dollars will help a lot of businesses create and update their websites. They provide training and on- call support with materials for three to six months for businesses. They anticipate each business to use $10k to $5k. Alex states that his team helps small businesses make the most of their internet potential. For a lot of smaller startups creating a website is overwhelming for them. Code Works takes a holistic approach to technology that takes the end-user, business processes, and their financial impact into consideration. As a technology partner, we will help them make decisions as a domain expert that will lead them to developing an exciting solution with a real impact on their business. Upon a motion by Vice-President Warner, seconded by Secretary Sallie, the motion carried unanimously, the Commission approved Budget Request (Digital Storefront Program) submitted on Thursday, June 8, 2023. 2.Budget Request (Cultivate) Erik Glavich Presented a Budget Request (Cultivate). Staff is requesting $100k from the RDC General fund to assist Cultivate in the construction of a new 21,000 square foot cold storage facility. On July 28, 2022, Cultivate acquired commission owned land located at 1503 Prairie Avenue and committed to building the new cold storage facility. Commission approval is requested. Jim Conklin, Executive Director of Cultivate gave a presentation to the commission. Jim stated that they are revising the business as it has grown40% over 2022. Last year they served seventy pantries and this year they are up to one-hundred fifteen pantries. They partner in the cold storage business with Trader Joe’s, Fresh Thyme, and Whole Foods. They are not large enough to partner with larger food chains such as Martin’s and Kroger. Their mission is redirecting food that would otherwise be discarded to feeding our communities from families to school children to the homeless. There are 43,000 children in our three-county area with food insecurity. He stated sixty-eight hours is how long a child can go without food on the weekends. The need is great but so is their plan to build a facility that will increase the cold storage capacity by twenty times. The facility will be available free of charge to our community pantries to feed the vulnerable. With the larger facility they will expand their backpack program. Cultivate went from 40M to 200M pounds of food rescued. They have hundreds of people that volunteer on a yearly basis but can always use more hands. South Bend Redevelopment Commission Regular Meeting – June 8, 2023 Jim stated that there are grants and tax credits that they are applying for. The new facility is looking to start construction in July with an August 1, 2023, groundbreaking at 2:00 pm. Vice-President Warner stated that he has been to the facility and helped. This is an amazing service for our community and to the outlying community. President Jones thanked Mr. Conklin for his presentation. Upon a motion by Commissioner Wax, seconded by Vice-President Warner, the motion carried unanimously, the Commission approved Budget Request (Cultivate Culinary) submitted on Thursday, June 8, 2023. C.Administrative 1.Resolution No. 3574 (Determining Tax Increment to be Collected 2024) Mary Brazinsky Sears Presented Resolution No. 3574 (Determining Tax Increment to be Collected 2024). This is the annual resolution that is needed to satisfy obligations of the commission letting respective taxing units that no excess assessed value may be allocated at this time. If commission approves, letters to those tax units will go out in the mail within the following week. Commission approval is requested. Upon a motion by Vice-President Warner, seconded by Secretary Sallie, the motion carried unanimously, the Commission approved Resolution No. 3574 (Determining Tax Increment to be Collected 2024) submitted on Thursday, June 8, 2023. 6.Progress Reports A.Tax Abatement 1.Erik Glavich stated that Common Council passed a resolution on a four-year real property tax abatement for David A. Nufer, LLC at 521 North William Street/Burton Laundry. 2.Tax abatements going to Common Council next week: •Verbio North America, LLC/Ethanol Plant at 3201 W Calvert Street (5) year Personal Property Tax Abatement •Verbio North America, LLC/Ethanol Plant at 3201 W Calvert Street (8) year Real Property Tax Abatement •Reconfirming Resolution Diamond View Apartments, LP – (8) Year Tax Abatement •Declaratory Resolution RealAmerica Development, LLC - 8) Year Tax Abatement •Resolution Designating Area GLC Portage Prairie, LLC – AMG expansion for their military production. •Resolution Designating Area Historic Property (Monarch Printing) (2) Year Vacant Building Tax Abatement •Resolution Designating Area Historic Property (Monarch Printing) (2) Year Real Property Tax Abatement South Bend Redevelopment Commission Regular Meeting – June 8, 2023 B.Common Council C.Other 1.Joe Molnar noted Fire Station No. 9 on Mishawaka Avenue has started improvements to the roof, drywall, electrical work to finish the space. All permits have been pulled through the building department. 7.Next Commission Meeting: Thursday, June 22, 2023 8.Adjournment Thursday, June 8, 2023,10:09 a.m. Vivian Sallie, Secretary Marcia Jones, President City of South Bend Department of Administration & Finance Claims Allowance Request To:South Bend Redevelopment Commission From:Kyle Willis, City Controller Date:Wednesday, June 14, 2023 Pursuant to Indiana Code 36-4-8-7, I have audited and certified the attached claims and submit them for allowance in the following amounts: GBLN-0058238 $268,063.30 GBLN-0000000 $0.00 GBLN-0000000 $0.00 Total:$268,063.30 _______________________________ Kyle Willis The attached claims described above were allowed in the following total amount at a public meeting on the date stated below:268,063.30$ South Bend Redevelopment Commission By:_______________________________ Name: Date: ITEM 3A Attest:_______________________________ Name: City of South Bend Department of Administration & Finance Claims Allowance Request To:South Bend Redevelopment Commission From:Kyle Willis, City Controller Date:Tuesday, June 20, 2023 Pursuant to Indiana Code 36-4-8-7, I have audited and certified the attached claims and submit them for allowance in the following amounts: GBLN-0058469 $176,761.32 GBLN-0000000 $0.00 GBLN-0000000 $0.00 Total:$176,761.32 _______________________________ Kyle Willis The attached claims described above were allowed in the following total amount at a public meeting on the date stated below:176,761.32$ South Bend Redevelopment Commission By:_______________________________ Name: Date: ITEM 3B Attest:_______________________________ Name: Redevelopment Commission Agenda Item DATE: June 13, 2023 FROM: Chris Dressel SUBJECT: Budget Request (Coal Line Multiuse Trail Phase III Design) Which TIF? (circle one) River West; River East; South Side; Douglas Road; West Washington PURPOSE OF REQUEST: Staff requests the Redevelopment Commission's approval of $250,000 for the design of Coal Line Trail Phase III (between Lincoln Way West and Linden Avenue). Continuing the trail was identified as a priority within the Kennedy Park Neighborhood Plan as a and a connection to the future Martin Luther King Dream Center at Linden Avenue and College Street. Construction of Phase III could begin as early as 2025. If you should have any questions or need more information, please feel free to contact me at either cdressel@southbendin.gov or 235-5847. INTERNAL USE ONLY: Project Code: _______________________________________________. Total Amount new/change (Inc/dec) in budget: Break down: Costs: Engineering Amt: ______________________; Other Prof Serv Amt_________________. Acquisition of Land/Bldg (circle one) Amt: ________; Street Const Amt _______; Building Imp Amt_________; Sewers Amt_________; Other (specify) Amt: ________________ ___________________________________________. Going to BPW for Contracting? Y/N Is this item ready to encumber now? ____ Existing PO#__________ Inc/Dec $_____________ ITEM 5A1 PURPOSE OF REQUEST: Resolution Approving Terms of Settlement Agreement and Authorizing Execution of Agreement Specifics: The Commission on September 26, 2019 entered into a Real Estate Purchase Agreement with R Ray Real Estate, LLC (Masterbilt) for the purchase of 1530 Kemble St. (the “Property”) with the intention of Masterbilt to perform certain lot improvements. Subsequently, Masterbilt undertook several actions to prepare the property for the lot improvements including obtaining Quiet Title Judgment for the Property in Cause No. 71C01- 2005-PL-000170, and the expenditure of other funds to invest in the Property and vacating former railroad easements on the property. However, due to unforeseen circumstances, the lot improvements as outlined will not be completed. Masterbilt ended up purchasing another large already constructed building in the city limits of South Bend and made considerable investments in the new site, expanding Masterbilt’s business as originally planned in the Purchase Agreement but at a different location. Furthermore, Masterbilt executed this business expansion without any Tax Increment Financing or Tax Abatement subsidies from the City of South Bend. As the lot improvements will not be completed, to avoid costly litigation, Redevelopment staff and Masterbilt negotiated a settlement agreement by which the Commission would retake the Property quickly and efficiently. This resolution ratifies and approves the re-acquisition of the Property at Fifty Thousand Dollars ($50,000.00), as well as transferring two small non-buildable lots near a current Masterbilt owned property and authorizes members of the Department of Law to negotiate the remaining terms of the Settlement Agreement. Redevelopment Staff requests approval of the Resolution. Pres/V-Pres ATTEST: Secretary Date: APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION Redevelopment Commission Agenda Item DATE: 6/16/23 FROM: Joseph Molnar SUBJECT: Authorizing Settlement Agreement Which TIF? (circle one) River West;River East;South Side;Douglas Road;West Washington ITEM 5A2 RESOLUTION NO. 3575 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION APPROVING TERMS OF SETTLEMENT AND AUTHORIZING EXECUTION OF AGREEMENT WHEREAS, the South Bend Redevelopment Commission (the “Commission”), governing body of the South Bend Department of Redevelopment (“Redevelopment”), exists and operates pursuant to I.C. 36-7-14 (the “Act”); and WHEREAS, the Commission entered into a Real Estate Purchase Agreement (“Agreement”), dated September 26, 2019, with R Ray Real Estate, LLC (“R Ray”) for the purchase of certain property (“Property”), a copy of which is attached as Exhibit A; and WHEREAS, as a part of the Agreement, R Ray was to perform certain lot improvements on the Property; and WHEREAS, subsequent to the execution of the Purchase Agreement, R Ray undertook several actions to prepare the Property for the lot improvements as contemplated in the Purchase Agreement; however, due to unforeseen circumstances, the lot improvements as outlined in Section 11 of the Purchase Agreement will not be completed; and WHEREAS, to avoid litigation, Redevelopment staff and R Ray negotiated a Settlement Agreement by which the Commission would re-take the Property quickly and efficiently, and WHEREAS, certain other property owned by the Commission (the “Lots”) is included as part of the consideration in the Settlement Agreement to be conveyed to R Ray; and WHEREAS, through its adoption of its Resolution No. 3569 on January 26, 2023, the Commission established an offering price of $1,930.00 for the Lots; and WHEREAS, pursuant to the Act, on January 16, 2023, the Commission authorized the publication on February 3, 2023, and February 10, 2023, respectively, of a notice of its intent to sell the Lots and its desire to receive bids for the Lots on or before February 23, 2023, at 9:00A.M.; and WHEREAS, as of February 23, 2023, at 9:00A.M., the Commission received no bids for the Lots; and WHEREAS, having satisfied the conditions stated in Section 22 of the Act, the Commission may convey the Lots as part of the Settlement Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND REDEVELOPMENT COMMISSION AS FOLLOWS: 1.The Commission hereby ratifies and approves the re-acquisition of the Property in exchange for the conveyance of the Lots and the sum of Fifty Thousand Dollars ($50,000.00). 2.The Commission authorizes members of the Department of Law to negotiate any remaining terms of the Settlement Agreement on its behalf. 3.The Corporation Counsel of the City of South Bend, Indiana is hereby authorized and instructed to execute the final Settlement Agreement. 4.The Commission shall execute a Special Warranty Deed, as set forth in Exhibit B, conveying the Lots to R Ray, which will be held in escrow until receipt of an executed Special Warranty Deed from R Ray returning the Property to the Commission. 5.This Resolution will be in full force and effect upon its adoption by the Commission. Signature Page Follows ADOPTED at a meeting of the South Bend Redevelopment Commission held on June 22, 2023. . SOUTH BEND REDEVELOPMENT COMMISSION ______________________________ Marcia Jones, President ATTEST: ______________________________ Vivian Sallie, Secretary EXHIBIT A Real Estate Purchase Agreement Exhibit B Special Warranty Deed City of South Bend Redevelopment Commission as Grantor R Ray Real Estate, LLC as Grantee AUDITOR’S RECORD TRANSFER NO.__________ TAXING UNIT___________ DATE __________________ KEY NOS. 018-3076-3059 018-3076-305301 SPECIAL WARRANTY DEED THIS INDENTURE WITNESSETH, that the City of South Bend, Department of Redevelopment, by and through its governing body, the South Bend Redevelopment Commission, 1400 S. County-City Building, 227 W. Jefferson Boulevard, South Bend, Indiana (the “Grantor”) CONVEYS AND SPECIALLY WARRANTS to R Ray Real Estate, LLC, an Indiana limited liability company with its registered office at 705 North Hill Street, South Bend, Indiana 46617 (the “Grantee”), for and in consideration of One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the following real estate located in St. Joseph County, Indiana (the “Property”): Tax ID: 018-3076-3059 Legal Description: LOT 45 KNOBLOCKS SUB BOL 84 N OF RR Commonly Known As: 18 CHESTNUT-VAC LOT 50X120 Tax ID: 018-3076-305301 Legal Description: 6 X 20FT SW COR LOT 34 KNOBLOCKS SUB OF BOL 84 Commonly Know As: 18 VAC L34 6X20 WALNUT The Grantor warrants title to the Property only insofar as it might be affected by any act of the Grantor during its ownership thereof and not otherwise. The Grantor hereby conveys the Property to the Grantee free and clear of all leases or licenses; subject to real property taxes and assessments; subject to all easements, covenants, conditions, restrictions, and other matters of record; subject to rights of way for roads and such matters as would be disclosed by an accurate survey and inspection of the Property; subject to all applicable building codes and zoning ordinances; and subject to all provisions and objectives contained in the Commission’s development area plan, and any design review guidelines associated therewith. The Grantor conveys the Property to the Grantee subject to the limitation that the Grantee, and its successors and assigns, shall not discriminate against any person on the basis of race, creed, color, sex, age, or national origin in the sale, lease, rental, use, occupancy, or enjoyment of the Property or any improvements constructed on the Property. Each of the undersigned persons executing this deed on behalf of the Grantor represents and certifies that s/he is a duly authorized representative of the Grantor and has been fully empowered, by proper action of the governing body of the Grantor, to execute and deliver this deed, that the Grantor has full corporate capacity to convey the real estate described herein, and that all necessary action for the making of such conveyance has been taken and done. GRANTOR: CITY OF SOUTH BEND DEPARTMENT OF REDEVELOPMENT By: Marcia I. Jones, President ATTEST: ______________________________________ Vivian Sallie, Secretary STATE OF ________________ ) ) SS: ________________ COUNTY ) Before me, the undersigned, a Notary Public, in and for said County and State, personally appeared ______________________________, known to me to be the ________________________________, of South Bend Redevelopment Commission and acknowledged his/her voluntary execution of the foregoing Special Warranty Deed, being authorized so to do. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my official seal on the _____ day of ______________, 2023. ____________________________________ ____________________, Notary Public Residing in _______________________ Commission Expires: _______________ I affirm, under the penalties for perjury, that I have taken reasonable care to redact each Social Security number in this document, unless required by law. /s/ Danielle Campbell Weiss This instrument was prepared by Danielle Campbell Weiss, Assistant City Attorney, City of South Bend Department of Law, 1200S County-City Building, 227 W Jefferson Blvd., South Bend, Indiana 46601. Redevelopment Commission Agenda Item DATE: 6/16/2023 FROM: Charlotte Brach SUBJECT: Budget Request – SBCC Traffic Impact Study Funding Source* (circle one) River West; River East; South Side; Douglas Road; West Washington; RDC General *Funds are subject to the City Controller's determination of availability; if funds are unavailable, as solely determined by the City Controller, then the authorization of the expenditure of such funds shall be void and of no effect. Purpose of Request: Budget request for $40,000 for a Traffic Impact Study for the South Bend Chocolate Dinosaur Museum. The South Bend Chocolate Company wants to have a traffic signal at the intersection of US-20 and Olive and INDOT requires a traffic impact study to determine if a signal is warranted. This cost will be split with South Bend Chocolate. INTERNAL USE ONLY: Project ID: PROJ ; Total Amount – New Project Budget Appropriation $_______________; Total Amount – Existing Project Budget Change (increase or decrease) $_______________; Funding Limits: Engineering: $_____________________; Other Prof Serv Amt $_______________; Acquisition of Land/Bldg (circle one) Amt: $___________; Street Const Amt $________________; Building Imp Amt $_________; Sewers Amt $_________; Other (specify) Amt $ ________________ _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION ITEM 5A3