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HomeMy WebLinkAbout06-25-08 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULED REGULAR MEETING June 25, 2008 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Mr. Karl King, Vice President Mr. Greg Downes, Secretary Mr. Hardie Blake, Jr. Dr. David Varner Legal Counsel: Mr. Charles S. Leone, Esq. Mr. Lawrence Meteiver, Esq. Redevelopment Staf£ Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Ms. Jennifer Laurent, Economic Development Specialist Mr. Nicholas Witwer, Economic Development Specialist Mr. Jitin Kain, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mr. Tom Price, Mayor's Office Ms. Jamie Loo, South Bend Tribune Ms. Rita Kopala Ms. GlendaRae Hernandez Ms. Linda Wolfson, Community Forum for Economic Dev Mr. Marty Wolfson, Community Forum for Economic Dev Mr. Tom Uzelac Ms. Rachel Banks Ms. Sara Stewart Uzelac Mr. Dennis Lambert Mr. George Lane Ms. Carole "Kelly" Havens Mr. Richard Hamilton Ms. Betty Hamilton Mr. Tom Zmyslo Sr. Mr. Paul Phair, Holladay Corp. Mr. John Phair, Holladay Corp. Mr. Frank Perri, Holladay Corp. Mr. Jeff Gibney, Executive Director, Comm & Econ Dev Mr. John Daly Ms. Lynn Collier South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 1. ROLL CALL (CONT.) 2. APPROVAL OF MINUTES Rev . Henry Davis Sr. Ms. Ruby Brower Ms. GlendaRae Hernandez Mr. Richard Nussbaum Mr. Randy Rompola Mr. David Frank A. Approval of Minutes of the Regular Meeting of Friday, June 6, 2008. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, June 6, 2008. B. Approval of Minutes of the Special Meeting of Friday, June 13 2008. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the Minutes of the Special Meeting of Friday, June 13, 2008. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, JUNE 6, 2008 COMMISSION APPROVED THE MINUTES OF THE SPECIAL MEETING OF FRIDAY, JUNE 13, 2008 Redevelopment Commission Claims submitted June 25, 2008 for approval 305 FUND SBCDA BOND The Troyer Group 17,159.37 Michigan St. Streetscape Improv. PH 1 South Bend Tribune 85.50 Michigan St Improvements Project Tri County News 56.90 Michigan St Improvements Project 324 AIRPORT AEDA Sopko, Nussbaum, Inabnit & Kaczmarek Wightman Petrie Hull & Associates, Inc. 2,287.50 Outside Legal Assistance 5,825.00 Former EMI Building - 2026 S. Main 4,686.06 Phase I for Additional Eckler-Lahey 2 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 3. APPROVAL OF CLAIMS (CONT.) 420 FUND TIF DISTRICT-SBCDA GENERAL Sopko, Nussbaum, Inabnit & Kaczmarek 2,620.25 CB Richard Ellis 596.77 Ampco System Parking 1,550.79 Wightman Petrie 580.00 Rose Pest Solutions 93.00 AT&T 27.09 Century Center 76.00 Meridian Title Corporation 700.00 422 FUND WEST WASHINGTON South Bend Tribune 98.38 SBD Reprographics 275.88 Indiana Michigan Power 9.89 Kaser-Spraker Const. 29,485.00 TRI County News 63.81 435 FUND TIF DOUGLAS ROAD Baker & Daniels 13,771.83 619 BLACKTHORN GOLF COURSE Meadowbrook Golf Group, Inc. 8,000.00 $ 88,049.02 Outside Legal Assistance Management Fee & Maintenance LaSalle Hotel Management Fee Surface Lot Demolition of Gates Chevy World Building LaSalle Hotel LaSalle Hotel Audio Visual Srvc Charge East Bank Plan 118 N Main & 316 Main & South Engman Natatorium 3 -B ReBid Engman Natatorium 3 -B ReBid Engman Natatorium Renov. & Add Phs 3A Application # 10 Engman Natatorium Renov. & Add Phs 3A Application Legal Service -Douglas Rd TIF Management Fee Dr. Varner mentioned the $8,000 management fee to Meadowbrook Golf Group for managing Blackthorn Golf Course. Meadowbrook has been managing Blackthorn Golf Course since its inception. He noted that the golf course usually fails to operate in the black. He questioned whether we should look for a new management company when Meadowbrook's contract is up for renewal. He also noted that golf courses are a 3 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 difficult business to be in and questioned whether the city should be in the business of a high end golf course. Mr. Inks responded that 2008 is the last year of the current contract with Meadowbrook. There is a joint committee of the Commission and Airport Authority that oversees the administration and budgeting of the golf course. Mr. Downes noted that that committee will not meet again until November, unless something special requires it to. He suggested that if we want to do something like an RFP, staff should communicate that to the joint committee. Dr. Varner asked that staff communicate that. He feels that after this many shortfalls, it's important to consider whether management is the problem. Later on in the meeting the Commission will make a statement that the TIF is needed for necessary expenses. He wondered if all the expenses, such as subsidizing Blackthorn Golf Course, are truly necessary. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved the Claims submitted June 25, 2008, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS Mr. Inks asked permission to add item 6.B.(5), a Second Addendum to Lease with the Redevelopment Authority related to the Century Center capital improvements bond. There was no objection and the item was added. COMMISSION APPROVED THE CLAIMS SUBMITTED JUNE 25, 2008, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS 4 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) Public Hearing on Resolution No. 2456 expanding the boundaries of the Airport Economic Development Area, expanding the Allocation Area for purposes of tax increment financing and amending the Airport Economic Development Area Development Plan. (Adding Portage Prairie) Ms. Jones reminded the audience of the procedures for a public hearing. Mr. Inks noted that the Public Hearing file is complete, including: (1) A copy of the Notice of Hearing; (2) A copy of Resolution No.2456; (3) An affidavit from Carol Smith, Advertising Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on July 6, 2007; (4) An affidavit from Richard Andrysiak, Classified Manager of the Tri-County News, that the Notice of Hearing was published in that newspaper on June 13, 2008; (5) A statement from Nicholas Witwer that on June 13, 2008 affected property owners and registered neighborhood associations were sent notice of the Public Hearing; (6) A statement from Nicholas Witwer that on June 13, 2008 the taxing units were sent Notice of the Public Hearing; (7) As of 10:00 a. m., June 25, 2008, there was one written remonstrance and objection containing 76 signatures and other such evidence as presented related to Resolution No.2456. Mr. Inks asked that the Commission consider adding language to the original Resolution No. 2456 consistent with the Common South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Council's on July 23. When the Council reviewed its resolution, there were amendments from the floor that added two concepts to the resolution: the first was to set a life for the expansion area of not more than thirty years and, secondly, that the first priorities for Airport Economic Development Area funding will remain LaSalle Square, in an amount not less than $2.SM, and Studebaker Corridor, including the nanotechnology MIND project. He suggested the Commission resolution be changed to add the following paragraph: "This resolution is intended to be consistent with the resolution of the South Bend Common Council approved June 23, 2008, expanding the boundaries of the Airport Economic Development Area, expanding the allocation area for purposes of tax increment financing, and amending the Airport Economic Development Area Development Plan, and to the extent that this resolution is inconsistent with the Council resolution, the Council resolution shall control and the Commission resolution shall be considered amended to make the Commission resolution and Council resolution consistent in their terms and conditions. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission authorized Substitute Resolution No. 2456 adding the paragraph listed above as the subject of the Public Hearing. COMMISSION AUTHORIZED SUBSTITUTE RESOLUTION NO. 2456 ADDING THE PARAGRAPH LISTED ABOVE AS THE SUBJECT OF THE PUBLIC HEARING 6 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Mr. Witwer noted that Resolution No. 2456 will expand the boundaries of the Airport Economic Development Area to add approximately 300 acres, commonly referred to as Portage Prairie, to the northwest portion of the development area; the resolution also adds properties to the acquisition list to further one of our priorities, the Studebaker Corridor nanotechnology area. Mr. Witwer noted that with a previous expansion, about 120 acres of Portage Prairie were added to the development area, on which the city extended Dylan Drive and Holladay Corporation built a 150,000 sftbuilding, the Huron Building. This expansion is to provide the opportunity for infrastructure to support development the rest of the build-out for Portage Prairie. Mr. Inks noted that Resolution No. 2456 comes before the Commission at this time because of changes in state law, in particular House Enrolled Act 1001. Under that bill, after July 1, 2008, the procedure for expanding a development area changes. The new procedures would require a local finding by the Redevelopment Commission that the Airport Economic Development Area could not meet its obligations. With that finding, the Commission could expand its boundaries of the Airport Economic Development Area (AEDA). We do not believe it will be possible to make that finding. The AEDA has a strong stream of revenue. Even after accounting for the circuit breaker, it will 7 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... have more than sufficient revenues to meet all of its obligations and debt service, contractual or otherwise. The only way, after July 1, that the AEDA will be allowed to expand, is with the approval of the Indiana Economic Development Commission. They have not established guidelines. We don't know what their guidelines will be, and we don't know that it would be possible to even consider an expansion for this project at a later date. Other communities have expanded before the July 1 deadline as well: Mishawaka, and Plymouth. The law allowed time between passage and the effective date, providing an opportunity for these types of expansion, so we feel it is prudent to do the expansion now. Mr. Inks noted that the expansion does not guarantee any funding for Portage Prairie. It does make available the local decision to provide funding in the future, should that be warranted. Those decisions would go through the Redevelopment Commission. Mr. King asked, practically, how LaSalle Square and the nanotechnology park would be given priority. If Portage Prairie requests funding for infrastructure, how will we be sure Portage Prairie doesn't use funds that should be saved for those other projects? Mr. Inks responded that staff would do a projection of the revenue stream over the next ten-year period. That's the period in South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... which we have a significant commitment to the MIND project. If we estimate our revenues of that 10-year period and find that we have revenues beyond the $2. SM committed to LaSalle Square and beyond a $SOM investment in the MIND project, then we could consider an expenditure of the excess being available for other projects, such as Portage Prairie. If the revenues are not sufficient, that would preclude a payment out of cash, or the Commission could look at financing options. Mr. Blake noted that $2. SM, divided by 10 years yields only $250,000 per year for LaSalle Square. Mr. Inks agreed that that was the math, but said the intent is to not do that. The specifics were not spelled out at the Council meeting, but the Commission has budgeted $2. SM in 2008 and in 2009. Staff would seek to keep revenues available during a nearer timeframe. Our objective is not to stretch out development in LaSalle Square. We want to see that proceed immediately and be completed. Mr. Blake confirmed that LaSalle Square would have equal access to additional funds available in from the AEDA TIF after the $2. SM was used. Mr. Inks agreed that it would. Dr. Varner noted that "priorities" is a word. The real definition of what is a priority is where the expenditures come from and how they are made over a period of time. He thought the minimum to be spent on LaSalle Square should have been made larger, $SM. 9 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Dr. Varner noted that part of the discussion the Council had was if it wouldn't be better if Portage Prairie had its own TIF. $30M is a rough estimate of what is needed from the city for development of Portage Prairie. After those expenditures, that TIF could be dissolved and the taxes would be available for general city use. That's a discussion we ought to have before we create a $120M revenue stream for the AEDA. Dr. Varner didn't know if that discussion on priorities has ever taken place. As a Council member sitting in on budget meetings, he expects over the next months they're going to be told that police and fire require 75% of the general fund. If we keep adding to the TIF districts, if we never dissolve any of the TIF districts, our only choice is to raise property taxes again on our residents. We need to have a serious discussion about what we do with all these TIF revenues. Dr. Varner said he wants to see Portage Prairie happen. If we have to bond it, he would support that. But he doesn't like the idea of putting a $120M potential revenue stream into that TIF district where it may not be available for the necessary priorities. He thinks the construction of the interchange and development of Portage Prairie as probably more likely to happen sooner than the need for all that land in the Studebaker Corridor being ready for MIND. Expanding the AEDA, adding a $120M - $150M revenue stream, without any likelihood of dissolving it, puts city government in a shortfall with 10 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... regards to general fund expenditures. Mr. King agreed that the Commission may need to discuss that more before voting on Resolution No. 2456. That discussion would have bearing on the decision the Commission makes on Resolution No. 2456. Ms. Havens asked for clarification on where this proposal to expand the AEDA is in the process. Is Resolution No. 2456 a declaratory or confirming resolution? Mr. Inks responded that this would be the last step in the approval process. The Commission already adopted a resolution proposing to add this area to the AEDA, established a public hearing date, and sought and received approval by the Common Council. This would be the final action to establish the action to expand the AEDA to include Portage Prairie. Ms. Havens asked if there was an Area Plan Commission step prior to the Common Council approval. Mr. Inks responded that there was not, and there is none required by state law. Ms. Havens stated that there's some question as to whether the hearing conducted by the South Bend Common Council was legal, as no one has been able to provide proof of legal advertisement for that hearing. So, if that meeting and hearing were subsequently deemed null and void, it's possible that any action the Commission takes today would 11 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... make the Commission party to the same law suit. Mr. Inks responded that staff is confident it has followed the steps required under state statute, both on the Commission level and at the Council level, for this expansion. Staff recommends the Commission conduct the public hearing and take appropriate action on Resolution No. 2456. Mr. Leone agreed. He said that the purported flaws are purely speculative. The Commission needs to go forward at this time. If there are flaws, the city will deal with them as they come up. Mr. Inks called on Holladay Properties to give a presentation on the Portage Prairie development. He thought it important the Commission understand the impact of the development that is planned for that area. Mr. John Phair, Holladay Properties, noted that this is the fourth project of this magnitude that Holladay has done in Indiana. One is over ten years old. Each used TIF in different ways. All are generating taxes far in excess of the bond payments and those funds are flowing back into the communities. The taxes flowing off of this project will undoubtedly support other projects like LaSalle Square and MIND. Mr. Frank Perri showed an aerial of the Portage Prairie area, pointing out the location of the Huron Building, which was built 12 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... speculatively but is fully leased. He noted that in addition to the aforementioned $SOM of TIF revenue expected to be generated by this large project, it is also projected to generate $ l OM in county income tax and $4. SM in hotel motel taxes by 2022. Mr. Blake asked what cost to the city is expected over the next fourteen years in order for the Portage Prairie project to generate the revenue Mr. Perri just mentioned. Dr. Varner responded that Gary Gilot has estimated $30M in expenses for roads and sewers. Ms. Jones opened the Public Hearing on Substitute Resolution No. 2456 for whoever wished to speak. MR. WOLFSON: Marty Wolfson, 809 Park Avenue, South Bend. I just want to say that my testimony today is representative of the viewpoint of the coordinating committee of the Community Forum for Economic Development. The decision today, there's a tendency to think of it as a costless decision that we'll really have to do it to get it in before the July 1 deadline, that there's no real money being committed at this point. In a sense, that's certainly true. But I think there are some real costs to this. Although no additional money is being committed over and above the $1.6M spent on Dylan Drive already, the representatives of Holladay Corporation have made clear that they intend to come back to the Redevelopment PUBLIC HEARING ON SUBSTITUTE RESOLUTION No. 2456 13 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Commission for funding for the project. It would be very difficult to incorporate Portage Prairie into the TIF today and at some point in the future say that we're not giving them any money. Theoretically, you could do it, but you would be in a difficult position. Indeed, that's the reason that Holladay Corporation is interested in being in the Airport TIF rather than its own TIF, because the Airport TIF has the money now to be able to finance the infrastructure, whereas the new TIF wouldn't have the revenue at this point to do it. We've always said that the costs, in terms of TIF revenue or city funds going to the project could be substantial: a guess is at $30M. Representatives of Holladay have said that the multimillion dollar interchange is absolutely necessary for the success of Portage Prairie. That's a big expenditure and it makes me somewhat uneasy that the money that is being foreseen as being asked for TIF revenue is ambiguous. I think the Redevelopment Commission would feel more comfortable if you had a solid number there. There's another real cost associated with the decision to incorporate Portage Prairie into the Airport TIF district. It means that property tax generated at Portage Prairie will be unavailable to our schools, libraries, city, county and other taxing jurisdictions, as a consequence of being in the TIF district. Now, we are already closing our libraries on 14 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Saturday because of the revenue caps associated with HEA 1001. We are already facing cutbacks in police and fire and other needed services in South Bend. We are probably facing a recession that is likely to reduce jobs, income and tax revenue available to states, cities and counties. I think the point that Dave Varner brings up is very important, is there some ability for the Redevelopment Commission and the city to be able to do something about this in the future. I don't know the legal ramifications, but I think once it's in the Airport TIF, it's going to be a difficult to be able to recover that money. But not only will tax revenue from Portage Prairie be unavailable to the taxing jurisdictions, Portage Prairie will create additional costs---for fire and police protection, for schools and libraries, for parks and other public services. These monies are not going to come from the TIF, they are going to have to be paid for by the city and by the libraries and school system. That's another cost that should be added in to the cost, over and above the $30M the city's going to have to pay. It will create other costs to society as a whole, in terms of urban sprawl, higher transportation costs at $4.00 per gallon gasoline, and potential global warming. These are costs to society, not borne by any private party, but really need to be considered by public bodies such as the City Council and Redevelopment Commission. 15 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Finally, there's another cost, one that may be the most significant. The cost to development in the core of the City of South Bend. And the cost of jobs to core city residents. It will be difficult and costly for any inner city residents to go to Portage Prairie. Given the lack of public transportation, next to impossible without a car. What do we expect will happen to development in the city's core when massive resources are attracted out to Portage Prairie? It's not reasonable to subsidize development in fringe areas of the city and expect that we still have a level playing field in which core city development is not affected. While some will say that you can't fight the market, people just want to go to Portage Prairie, that may be, but it's not the market here that we're talking about. It's amulti-million dollar public subsidy that will make Portage Prairie even possible. What would happen to the west side of South Bend if we poured $30M into its development? If we want to create jobs, what's wrong with creating them in places where people are now living? Let's be clear. This is not an argument against growth and development, but an argument about the priorities for public subsidy. We can't lose sight of the purpose of economic development, to raise living standards and opportunities for all, including the jobless, the poor, and those who have been left behind. That purpose is as important in deciding about Portage Prairie as it is in all decisions about economic development. 16 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... THOMAS ZMYSLO: 51042 Prairie View Way, South Bend. I offer you today a petition of remonstrance in regard to this. My wife is the president of the German Township Neighborhood Association. With the week's notice or so that we've had on this issue, we've talked to people around St. Joseph County that have offered to put signatures on this petition against the expansion of the Portage Prairie into the AEDA. I'm here as a St. Joseph County taxpayer today and a member of the German Township Neighborhood Association and I'm here to ask you to vote against expansion of this TIF. During the winter I attended a house panel hearing. I don't know how many of you were there. At that time it was at IUSB in regard to the new tax law. At that time the house panel had a hearing, they pretty much chastised the local government officials and politicians in this area and around the state for the use of these TIF areas. The reason for the high taxes, the reason for the new law that just went into effect, because the taxpayers of the State of Indiana, St. Joseph County, South Bend, whatever, are tired of high taxes. There's four reasons in St. Joseph County we have high taxes: too much government spending, too many non-profits, too many tax abatements, and too many TIF areas. I understand there's $27M in this TIF area right now. And I guess there's five other TIF areas, from what I understand, or so in St. Joseph County. I don't know what amount of money is in those areas. Can you imagine 17 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... with this House bill and the money that we're short, if you heard the county last night. This is all causing these shortfalls of taxpayers' dollars to go to pay for public schools, libraries, county government, city government, police, fire protection. We need these monies. The taxpayer can no longer afford this kind of situation, subsidizing large projects like this for developers. St. Joseph County has the highest tax rate, next to Lake County, in the State of Indiana. Because of this law we just passed, I estimate an average house with $150,000 of assessed value, with the tax law we have in St. Joseph County, which is higher than anywhere in the State of Indiana, that person will be paying roughly about $500 more in property taxes on a $150,000 assessed home in the State of Indiana. $500 more than anywhere else in the State of Indiana! This is really injustice. What happened at the state level has really harmed Lake and St. Joseph County. Higher taxes are going to drive business and residential people away. You can try to bring development. I' m not going to say I' m against development 100%. We need development. We need people to come in and bring development. We need to try to get jobs that are worth $25 an hour with good benefits, maybe four or five hundred jobs, industrial jobs. I wouldn't be against that for a minute. But all I see between Blackthorn and Portage Prairie, is jobs that are in the distribution market, warehousing jobs. I don't see jobs that pay very good money. If you look back at the development of 18 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Blackthorn, that would be a good gauge for you guys to take a look at. It's been around, what, say twenty years? I see it as pretty much of a failure. Myself, personally, and a lot of taxpayers do also. It has created some jobs, but the majority of the jobs I see that have been created are from relocations from the inner city area out to the fringe and the Blackthorn area. You've got Tire Rack, Schaffer Gear, PEI Genesis. They've abandoned buildings in the inner city where people can work these jobs and moved them out to where they don't affect urban sprawl, on the edge of the county where they can't even get to these jobs. We've taken these companies that have been in the inner city of South Bend, subsidized them with another tax abatement, put them out into the Blackthorn area or Portage Prairie, and it's just causing the taxpayers more money. We're not getting any more new jobs from out of state or around the country, that's something new, that's going to pay good wages to this community. So, I'm very concerned as to what happens with Blackthorn. I don't see it as a very good investment. I wish you guys could dig into figures and see what it costs us to acquire all the property at Blackthorn, what it costs the taxpayers to subsidize it, to put in the infrastructure, and what we're getting out of it today. I know those tax dollars are not going to the general public to pay for all the services that we need: police, fire, schools, libraries. That money's still being held there, I don't know what it's generating, I don't 19 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... know whether it's generating more than we put into it. I somehow doubt that it is. In fact, as long as it's in a TIF area it's going to be staying there for many years anyway. I guess that's under the old law, which is what50 years it can stay in the TIF area? So I would ask you to not consider it and to turn it down. I have another question. I understand that the TIF area is only for industrial distribution, it's not to be used for housing. I understand in this proposal they have housing development. And the laws for TIF, it's not to be used for housing. It gives certain examples, and I have a list of them here, I'm sure you know: manufacturing, industrial, warehousing, research, development, distribution, transportation related projects. Not housing. There's housing in this project, as far as I understand it. So, it's not to be used for that. Auten Rd is not in the TIF area. I understand the City Council already allocated $ l OM in TIF monies to go ahead with Auten Rd. That isn't even in the TIF area. It isn't even in the Portage Prairie area. KELLY HAVENS: 12032 Timberline Trace, Granger. My concerns with TIFs are that the purpose seems to be to take a blighted area and give it a chance to become economically viable. I guess at the Portage Prairie area and I don't see that it's blighted. It's green space, it's farms, it's homes. They don't look to me like they need rescued. One can argue that they can be making more 20 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... money if put to some other use, but does that really define them as blighted? I understand the need for growth and the need for development. It seems to me what's really desperately needed is manufacturing growth and technology. I don't understand why we're proposing another set of distribution centers and offices and medical buildings and service, retail facilities. There's been a lot of talk about how this project will raise $49M, I think you all caught the fact that it's assuming that it ever builds out. It's been however many years and there's one building in there. Do we really believe it's going to build out and we're going to see those revenues? If you look at Blackthorn and how businesses have moved from one phase to another and then when abatements have expired, have left. You've got to ask yourself why we wouldn't see the same pattern here. As a matter of fact, it's all part of an even bigger picture, it seems to me. The businesses left downtown South Bend to go to Blackthorn in the first place, then moved through its phases, and then are either still there or have already moved on. Whenever you create a new thing, you really have to look at what will the market bear. When University Park Mall became successful, North Village Mall almost immediately dried up and died. It struggled and struggled and died. Scottscale, of course, has now gone through its agonies. One of two things will happen when you put in Portage Prairie, either University Park Mall starts to die, or because it's already thriving, doing so well, 21 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Portage Prairie never starts to live. I believe it's an economic truth that the market will simply bear only so much. So, either you're going to kill University Park with this, or you're not going to succeed at all. One or the other has to happen. So, my question is it really going to generate all these revenues? And, finally, if it did, how do we live with the fact that those monies have to be diverted into infrastructure and cannot be used for the general fund when all the units of government are screaming that they need more funds: our schools need them, our libraries need them, our county needs them for criminal justice, our city needs them. None of those monies, of course can go there; and on top of it, as other people have already noted, while the TIF monies can be used for the infrastructure, the roads, the landscaping, the fountains, you've got to ask how many fountains you can build before you've just got money sitting there that you sure wish you could use for the police and the fire and the EMS, because someone's got to provide the fire, police and EMS, and that's going to be the city, and, therefore, the taxpayers. I don't know where Mayor Luecke was getting that Monday night when he said, "Oh, yeah, at any point you can release your TIF funds into the general funds of all of the taxing units." If that was true, why on earth didn't Mishawaka do it all these last ten, fifteen years when they've been struggling with the same issue? My understanding is that Mishawaka was desperately searching for ways to get police, 22 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... fire, and EMS money out of their very successful TIF district and to the best of my knowledge they've still not been able to pull it off? They've done some maneuvering around like pulling from Uniroyal, and maybe taking some money that would have gone to Uniroyal and taking that out of the TIF so now we can use it... But you know that it's like an almost impenetrable barrier "thou shalt not cross" between capital funds and operating funds. If Mishawaka's been agonizing over this and unable to pull it off all these years, how can South Bend's Mayor be so convinced that, yeah, at any point the TIF can release those monies. Obviously, they're not easy to release or Mishawaka would have done it. So, I think you create a monumental problem for yourselves and your taxpayers in setting up a district like this, if it's perpetual. I know you added that provision about thirty years, but if the Airport TIF is going to be grandfathered, which it may well be, I would imagine anything you add to the Airport TIF will also be grandfathered. I don't think you've created any real ending for it. My final comment is, with gas prices and food prices where they are, is this the time to be diverting future funds and creating future burden for the taxpayers? This is not what they want to hear from you right now. HENRY DAMS SR.: My comment is, we as taxpayers, in the Second District, the Sixth District, on the low end of the totem pole. 23 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Two hundred and sixty-eight billion over here. Now you're promoting just $2.SM in the Second District. Now you're talking about including just Portage Prairie? Why are we who have the brunt of paying taxes received so little for our dollar? Not that you can answer the question. But that's what it comes out to be. All the money is going in outlying areas. When is the last time anyone has rode down the streets of South Bend, particularly the Sixth and Second Districts? Do you see all the blighted homes, all the boarded up homes? No retail whatsoever! None. Every dime that we spend is in Granger or Mishawaka. Are they still counting onus to support their lifestyles? Now even with our tax dollars. That doesn't even make any sense. You need to be responsive to the people of South Bend, and thus far it has not happened. It hasn't happened. We get the drippings of all the money, and yet you're talking about putting that money somewhere else. Drive through the neighborhood. See where the people are living at. See what state of mind they are in, yet you are chosen as leaders to lead, to make decisions. Your decisions are not for the people, because you don't even ask the people. That's the shame of it. But you sit here, not all of you, please don't get me wrong. But the fruit justifies the seed. You need to start being responsive to the residents, not to the ones who want the money, that want the business. But they're not bringing jobs here. The jobs, the money that was spent on the east side, the Mayor 24 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... said in his address, $268M. How many minorities worked in that area and brought that money back into South Bend. It's gone. Now you talk about $3. SM, adding some more to that, then taking and putting it somewhere else. Let us wake up. Because we pay taxes. It is our money anyway. It is. It belongs to us. You administer it. But it's our money. And we're not getting a fair return on our money. We never do. But that needs to change. That's all. Thank you. GEORGE LANE: Chairman and CEO of Citizens for the Accountability for Government, and that's just what it means, being accountable to the citizens. What I see here today and in the past, they are not accountable to the citizens. There are a lot of citizens that I talk to and that call me ever since that meeting at South Bend, you know that office. After that meeting at South Bend, we had, my wife kept track of a lot of the calls, I don't know how many calls that I have received on this situation. First of all, people want to know why this was not advertised about the meeting Monday night. I have never seen an advertisement that they were going to hold this meeting about this redevelopment project that you are going to talk about. Not one thing. I was on council for eighteen years in southern Indiana. We never played that game. Not one time did we ever play that game. First of all, you ask at the public hearing, we come to the public hearing and discuss this and after that you would take it to the council. I don't know, 25 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... maybe this is a different organization up here. I don't know, but that's the way we operated. First of all, you go to the people, then to the organization. You guys are appointed, all of you are appointed, right? Not elected. First of all, things change when you are elected. Anyway, another question I have been asked, what is it about you have meetings at 10:00 in the morning when the working man can't be here? Only retirees. I left my job, I had a thing that I had to do, but I left to be here to this meeting because I feel like this is necessary. I'd say most of these people here feel the same way. And, when people are loosing their homes, they can't afford to pay their taxes, our rates...I just talked to Rayfield Mortgage, I left on an answering machine, and he is asking for us to get into another taxation. We are going to have to go to another ways of spending money or getting money to get money from the public. Another tax onus. The State government says we don't have to pay property taxes and how does it work, and then our local government comes back and says, "You pay these taxes.: The TIF zone, and I've argued with people in Mishawaka, I don't know if they may have advertised, but I was out of town so I don't know whether they did or not, but what I am saying is, I'm not so sure, as the lady pointed out, I agree with every speaker we had up here at this point. I agree with everything they had to say. Folks, you need to take a hard look at this because every 26 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... time you put something in a TIF zone, and you know that, you're not just getting off the turnip truck some place, you all know that, and every time you put something in the TIF zone I pay more money for that. Because it don't go back into the general fund. I told you I was a council member for 18 years, President of the Council seven years. I worked hard at it. I looked at local government, state government, everything. You cannot continue to do this stuff. You are putting this stuff in the TIF zone. Let the market pay for itself, don't charge us for it. This is why I've had phone call after...people work, they're trying to pay their bills. I chose to be here, Kelly chose to be here, Tom Zmyslo chose to be here. Tom Zmyslo was shouted down at the meeting the other night. Mayor Luecke was able to talk to him, but when Tom got up and said something, bang went the gavel. Where's the democracy in this thing? The democracy is not here. You know you guys are supposed to serve the public, we don't serve you. Evidently you think we do. We don't serve you. You guys are appointed by the officials. He's appointed also, you're elected, he's a good man. I've talked to him before. Dave Varner, thank God we have men like Dave Varner on the City Council. He's a jewel on that Council. Henry Davis, he's a jewel on the Council. And it's beginning to get black and white, it used to be all white, now it's black and white and we see what the community's all about. You've only got one man here? Anyway, I just want to tell you, you're white. We've got 27 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... two females, thank God for that, but anyway, I just wanted to bring this to your attention because I just couldn't agree more with the individuals that got up here had to say. And Marty over there hit the nail on the head, he was there before and he's going to be there tomorrow and tomorrow. Because we are going to be back again and back again, but I speak for the people who call me and talk to me and the meetings I have and everything, and they think this is a complete farce on the tax payers. We've got to pay our bills. We have to pay our police and fire, our library bills and we had to pay everything else. I am glad you are a female, two females (Mrs. Jones interjected with, "I am too.") SARA STEWART UZELAC: I have property on the Studebaker corridor, I have a community garden, so I am not here as a resident, I am just here to discuss the community garden, some of what Marty said about community development. I think one thing, when we have this kind of dissidence, it is helpful to put everyone back together and say, none of us would be here, you all wouldn't be serving this way, you all wouldn't be here if we aren't all committed to making our community better. And that is what brings us all here. There are tons of people at home not doing that and so for that, I think we are all on the same page. How to do it becomes a little bit desparate. And one thing I have learned, as a college graduate student right now, is that when you want to do research and good research, good 28 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... qualitative research preceeds everything else. Find out, go ask the people. Recently we had a Community Economic Forum and I was in a poverty break out session. In that poverty break out session we kind of identified the group that we needed to find out from, the people, what were their barriers, their barriers for a good job, for economic development individually, which then of course builds the community? Now let's say right now, in this community, we have tons of framework for this sort of thing, we have Michiana Bridges Out of Poverty, we have the Community Economic Forum, we've got some really, really good groups. Mayor Luecke is involved in those, Ryan Dvorak is involved in those. We have some good frameworks in place, which is what kind of disturbs me about this right now, but maybe it is a matter of education. When I went out and asked the homeless and disenfranchised, that kind of thing, and I went to the streets, the shelters, etc. to ask what they needed, in terms of what were their barriers, transportation was huge. They can't get to the jobs. We have brakes on that, they can't get to outlying jobs, so they are stuck here. There are barriers in our system that have nothing to do with individual choices. So, I am thinking about this money, and I don't know a lot about that, but I am hearing that it's not transferable, which is interesting. And, I asked the people what were their biggest concerns. Now are you all familiar with Maslow's Hierarchy of Needs? So we are looking at $49M dollars of income, we all 29 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... need that in our community at influx. We are looking at $.75 as too expensive to use transportation. The bus one way, down to the Center, is too expensive. And of course, if you have no income and you are trying to get a job and you need two or three legs, that may be $3.50 a day, and of course, it stops at S:OOpm or so. On weekends it doesn't even run except hourly and not on Sunday, and so you can't even have one of those jobs unless it is a Monday through Friday day shift. That's a barrier. Bringing this kind of development does not help any of that. With the property at Studebaker, a small start, an individual start with the community garden. I started a community garden because I know in a community project the only way to make a difference is to actually do it yourself and then hope others will join in. But in Maslow's Hierarchy of Needs, food comes first. The visible needs, food and safety. I go out there, I hoe, I plant, we have a lot of food, the shelters have benefited, getting lettuce, radishes, etc. I have been able to feed one hundred people lunch, at least yesterday at St. Margaret's. The people that are passing out brochures, and these are for everyone to use, the neighbors, any of you, go and harvest, they have harvested the greens and the radishes already some. Here are some of the agencies that have been involved, Broadway Christian Parish, South Bend Health Department, Project Homecoming, Main Street Catholic House, and I don't know their official name, the Homeless Shelter, Hope Rescue Mission, WIC (that's 30 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Women, Infant, Children nutritional focus for our people), St. Margaret's House, First United Methodist's Church, Stone Soup Advocacy and Minority Action Collation is interested in their participatory research with Notre Dame. JACK DALY: Just wanted to make an observation. I am with Michiana Quality Life. I am loosely associated with Community Forum. Just in observing this trend that is happening, the fellow over here that mentioned the donut effect, that seems to be the picture that I see. The Redevelopment Commission is suppose to be interested in, is portrayed as being interested in revitalizing South Bend; and yet, in effect, what it does is siphon off the energies that South Bend needs to create this donut of development that surrounds a black hole where people aren't going to spend time. They are going to be leaving here, when you try to attract people from outside of that black hole into the area they populate the donut, they don't come inside. When you take $2.5 M dollars and put it in one hand and you take $30M, which a potential for twice that. If costs continue to escalate, and I don't see anything leveling off, so what you estimate today, I wouldn't put on rosy glasses and think that's going to stay, it will increase. How you can equate $2.SM dollars for LaSalle Square with $30M, potentially $80M dollars for an outlying area, and call that revitalization? I am sorry but I didn't just fall off that turnip truck, either. So, redevelopment, please let's 31 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... look at that concept. How do you revitalize while you siphon the energies off of a city? I just can't wrap my mind around that. DAVE FRANK: I head an organization called One Voice Now, and I just want to say that our organization has been trying to promote an idea to use the technology that we have so that the people in South Bend can be educated on this issue. The reason that people aren't here is, as George says, everyone's working. Why we are having this meeting right now, I have no idea. I was there when Portage Prairie was passed, it wasn't passed in front of the County Council, such a weird system. It was passed in front of the City Council, which is really strange because if we don't agree with the decisions that our representatives make, we can't vote them off. Our hands are tied. But that night there were about 150 people in line to speak against this project, there were three people who spoke for it, the Mayor, a commercial realtor and the wife of a doctor. The nine people on the City Council voted unanimously for the three people. Which means, 150 people walked out of there disheartened and three people walked out of there happy, which is the opposite of the way democracy is supposed to work. You people were appointed to represent the people and you weren't appointed to represent Luecke, you were appointed to represent the people. If you really want to know about how people feel just ask for a raise of hands right now, how many people are for it and how many 32 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... people are against it. That's the way democracy is supposed to work. DIANE ZMYSLO: I am from German Township. I am the President of the neighborhood association. I would just like to know how many of you people have actually done your homework, driven out to Blackthorn or in the area that's in the TIF right now and seen what type of development there is, and how much road. Can I have a show of hands right now? So, you're aware. I mean, you drive through Blackthorn, Mayor Luecke has admitted it's not been successful. We have soccer fields, we have for sale signs, and then we want to expand? Where are these tax dollars going to do? I ask you to please do your homework before you vote. Thank you. LYNN COLLIER: South Bend resident. I guess at this point in time I am interested in, number one, I have been hearing all the disapproval and nobody wants this, and so you're going to vote for it or against it, is that correct? Ms. Collier was told that was correct. OK, and then, after that, what happens? Mr. Inks said the expansion either occurs or doesn't occur. Ms. Jones said the property either gets included in the district or doesn't. Nothing else happens at that point, no money has been spent, except as Mr. Wolflson pointed out, that theoretically. It just becomes included into the Airport TIF 33 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... district. We have not committed any money. MS. COLLIER: This area that's going to be included, where is it and what road or avenue or street does it include? Or where does it go north and south? MS. JONES: Paul, just real quickly point it out. Mr. Phair showed the area on the map. The area is west of the bypass, north of Cleveland. Ms. Jones pointed out the Studebaker Corridor area as well. Ms. Collier said she was concerned about the southwest and LaSalle Square. She understood that LaSalle Square was already a part of the area and would not be affected in their allocations. She thought that by adding more to the area that the significance was a money issue. She was wondering if it was a money issue, and it was acknowledged that it was. She wondered if it was approved that nothing was going to happen financially and Ms. Jones said at this point nothing was going to be given to it. Ms. Collier asked if the City Council had agreed to this and learned that it has. Ms. Collier said they were here telling the Commission that they don't want it and the Commission still has to vote on it but nothing is going to happen? Ms. Jones said that was correct. 34 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Ms. Collier said the development will happen, correct? Ms. Jones said that is up to the developers. Ms. Collier said: "we say no and the City says yeah and then they can do what they want to so your vote is not even necessary?" Ms. Jones said it is part of the procedural process. Ms. Collier said she is new here and asked for help. Ms. Jones said that was OK. Ms. Jones asked if anyone else wished to speak regarding Resolution No. 2456. There was no one who wished to speak. Ms. Jones closed the Public Hearing for whatever action the Commission wished to take. (2) Commission approval requested for Substitute Resolution No. 2456. Mr. Downes made a motion to approve Substitute Resolution No. 2456 expanding the boundaries of the Airport Economic Development Area, expanding the Allocation Area for purposes of tax increment financing and amending the Airport Economic Development Area Development Plan. Mr. King seconded the motion. The motion carried on a vote of three in favor; Dr. Varner was opposed and Mr. Blake abstained. The Commission took a break at this point, resuming the meeting at 12:10 p.m. COMMISSION APPROVED SUBSTITUTE RESOLUTION NO. 2456 EXPANDING THE BOUNDARIES OF THE AIRPORT ECONOMIC DEVELOPMENT AREA, EXPANDING THE ALLOCATION AREA FOR PURPOSES OF TAX INCREMENT FINANCING AND AMENDING THE AIRPORT ECONOMIC DEVELOPMENT AREA DEVELOPMENT PLAN. (ADDING PORTAGE PRAIRIE Mr. King permanently left the meeting at 12:00 p.m. 35 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) Commission approval requested for proposal for professional design services in the South Bend Central Development Area. (Streetscape improvements, northeast corner Jefferson & Main) Ms. Laurent noted that staff solicited and received a proposal from MPA Architects for completion of preliminary design work for a Streetscape improvement project at Jefferson and Main. The fee is an amount not to exceed $6,000, with the Commission's portion being $3,000. $3,000 will be paid by 1St Source Bank. Staff recommends approval. Upon a motion by Dr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the request for proposal and accepted the proposal from MPA Architects for the scope of services and fee proposed. (2) Commission approval requested for Easement Agreement with Memorial Health & Lifestyle Center. (to install security fencing, top of wall on Leighton Parking Garage) Ms. Jennings noted that the Memorial Health and Lifestyle Center has requested permission to install an eight-foot chain link fence on the roof of the Leighton Healthplex, which will be connected to one wall of the Leighton garage. The fence is for security purposes. Engineering and Ampco Management have inspected the area and reviewed the specifications. They anticipate COMMISSION APPROVED THE REQUEST FOR PROPOSAL AND ACCEPTED THE PROPOSAL FROM MPA ARCHITECTS FOR THE SCOPE OF SERVICES AND FEE PROPOSED 36 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... no structural damage to the city's property as a result of the fence installation. Memorial Health and Lifestyle Center will absorb the entire cost and would like to have Commission approval to use the solid wall portion of the city garage for proper installation. Staff recommends approval. Upon a motion by Mr. Downes, seconded by Dr. Varner and unanimously carried, the Commission approved the Easement Agreement with Memorial Health & Lifestyle Center. (3) Commission approval requested for proposal for professional services. (Gates Toyota building, 333 Western) Mr. Schalliol noted that staff solicited and Wightman Petrie submitted a proposal in the not to exceed amount of $14,500 to perform a facility study for 333 Western Avenue, the current Gates Toyota building. Staff recommends approval. Dr. Varner asked if the city owns the building. Mr. Schalliol responded that we are considering acquiring it. Mr. Downes asked if there was a party interested in reusing the building. Mr. Schalliol responded that there is. Upon a motion by Mr. Downes, seconded by Dr. Varner and unanimously carried, the Commission approved the request for proposal and accepted the proposal from 37 COMMISSION APPROVED THE EASEMENT AGREEMENT WITH MEMORIAL HEALTH & LIFESTYLE CENTER COMMISSION APPROVED THE REQUEST FOR PROPOSAL AND ACCEPTED THE PROPOSAL FROM WIGHTMAN PETRIE FOR AN AMOUNT NOT TO EXCEED $14,500 FOR THE SCOPE OF SERVICES PROPOSED South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) continued... Wightman Petrie for an amount not to exceed $14,500 for the scope of services proposed. (4) Commission approval requested for Resolution No. 2462 related to acquisition of property in the South Bend Central Development Area. (Setting offering price for 323 S. William) Mr. Schalliol noted that the average of two appraisals done on the 323 S. William St. was $67,000. Resolution No. 2462 sets the offering price for acquisition of the property at that amount and authorizes sending a purchase offer in that amount. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2462 related to acquisition of property in the South Bend Central Development Area. (Setting offering price for 323 S. William) (5) Commission approval requested for Resolution No. 2466 approving a Modification to a Second Addendum to Lease for certain public improvements and regarding other related matters. (Capital improvements at Century Center) Mr. Inks noted that the Commission held a public hearing on the Second Addendum to Lease on June 13. At the time of the public hearing the Lease indicated $1,108,000 in annual lease payments. That amount has been reduced in the modification to COMMISSION APPROVED RESOLUTION NO. 2462 RELATED TO ACQUISITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (SETTING OFFERING PRICE FOR 323 S. WILLIAM 38 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (5) continued... $600,000. We had been thinking there might be some available downtown TIF money that we could put toward this. We have since determined that that is very unlikely. We are going to proceed with a smaller lease amount to be paid off with hoteUmotel tax funds only, to do the capital improvements at Century Center. Mr. Rompola noted that the Lease also rolls the remnants of a bond issue into the new bond. That earlier bond was for improvements at Century Center; however, the project description was very general. Upon a motion by Mr. Downes, seconded by Dr. Varner and unanimously carried, the Commission approved Resolution No. 2466 approving a modification to a Second Addendum to Lease for certain public improvements and regarding other related matters. (Capital improvements at Century Center) C. Airport Economic Development Area (1) Commission authorization requested to submit Certified Technology Park Technology Development Grant Fund Application. Item 6.C.(1) was tabled to the July 18, 2008 meeting. COMMISSION APPROVED RESOLUTION NO. 2466 APPROVING A MODIFICATION TO A SECOND ADDENDUM TO LEASE FOR CERTAIN PUBLIC IMPROVEMENTS AND REGARDING OTHER RELATED MATTERS. (CAPITAL IMPROVEMENTS AT CENTURY CENTER ITEM 6.C.(1~ WAS TABLED UNTIL THE JULY 18, 2008 MEETING 39 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) Commission approval requested for Resolution No. 2463 related to acquisition of property in the Airport Economic Development Area. (1624 Maplewood) Mr. Witwer noted that 1624 Maplewood is a residential property surrounded by industrial park. This is a voluntary acquisition. Resolution No. 2463 sets the offering price for the acquisition at $58,500, the average of our two appraisals. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2463 related to acquisition of property in the Airport Economic Development Area. (1624 Maplewood) (3) Commission approval requested for Resolution No. 2464 approving and accepting a counter offer for the acquisition of property in the Airport Economic Development Area. (1624 Maplewood) Item 6. C. (3) was tabled. D. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. E. South Side Development Area There was no business in the South Side Development Area. COMMISSION APPROVED RESOLUTION NO. 2463 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT UREA. (1624 MAPLEwooD) ITEM 6.C.(3) WAS TABLED 40 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) F. Northeast Neighborhood Development Area (1) Commission approval requested for proposal for professional services. (Survey related to extension of Napoleon St.) Mr. Schalliol noted that this request is for a survey for acquisition of property needed to extend Napoleon Street to South Bend Avenue. The proposal is from Ranch Harner & Associates. The amount of the contract is $5,998. Staff requests approval for anot-to- exceed amount of $6,500 to cover some title work and other expenses. Dr. Varner asked whether we use other surveyors than Danch Harner. Mr. Schalliol responded that we use Wightman Petrie, Lang Feeney, Abonmarche. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal for professional services and accepted the proposal from Ranch Harner & Associates in an amount not to exceed $6,500. (2) Commission approval requested for Resolution No. 2460 related to acquisition of property in the Northeast Neighborhood Development Area. (1102 Duey) Mr. Schalliol noted that Resolution No. 2460 sets the offering price for acquisition of 1102 Duey at $29,000 and authorizes sending a purchase offer in that amount. COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR PROFESSIONAL SERVICES AND ACCEPTED THE PROPOSAL FROM RANCH HARNER & ASSOCIATES IN AN AMOUNT NOT TO EXCEED $6,500 41 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) F. Northeast Neighborhood Development Area (2) continued... Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2460 related to acquisition of property in the Northeast Neighborhood Development Area. (1102 Duey) (3) Commission approval requested for Resolution No. 2461 approving and accepting a counteroffer for the acquisition of property in the Northeast Neighborhood Development Area. (1102 Duey) Mr. Schalliol noted that the owners have made a counter offer to the Commission's $29,000 offer in the amount of $52,000. Staff requests approval of the counter offer. Mr. Downes asked why we would accept a counter offer so much higher than our offering price. Mr. Schalliol responded that that property contains a house. We negotiated hard on the price, but ultimately, we pay what the owner wants if we want the property. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2461 approving and accepting a counteroffer for the acquisition of property in the Northeast Neighborhood Development Area. (1102 Duey) COMMISSION APPROVED RESOLUTION NO. 2460 RELATED TO ACQUISITION OF PROPERTY IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. (1102 DUEY~ COMMISSION APPROVED RESOLUTION NO. 2461 APPROVING AND ACCEPTING A COUNTEROFFER FOR THE ACQUISITION OF PROPERTY IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. (1102 DUEY~ 42 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) F. Northeast Neighborhood Development Area (4) Commission approval requested for Assignment of Interest in Purchase Agreement from the Northeast Neighborhood Revitalization Organization. (1102 Duey) Mr. Schalliol noted that the Northeast Neighborhood Revitalization Organization (NNRO) is the city's agent in acquiring property in this area. They made the deal and signed the Purchase Agreement with the seller. In the Assignment of Interest NNRO assigns its interest in the purchase agreement to the Commission so the Commission can purchase the property. Mr. Leone noted that the Assignment in the Commissioners' packets was an incomplete document. The final version contains a paragraph naming the amount of $10.00 being paid for the Assignment and states that the Commission accepts the Assignment. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission accepted the Substitute Assignment of Interest in Purchase Agreement from the Northeast Neighborhood Revitalization Organization. (1102 Duey) G. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. COMMISSION ACCEPTED THE SUBSTITUTE ASSIGNMENT OF INTEREST IN PURCHASE AGREEMENT FROM THE NORTHEAST NEIGHBORHOOD REVITALIZATION ORGANIZATION. (1102 DUEY~ 43 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) H. Ratification of Services Contracts Commission Role in Service Contract Staff Property Description Transaction Contractor Provided Amount Member Oliver Industrial Park - Acquisition Witt Appraisal Residential $3,900.00 Witwer Residential Area (13 parcels) Services Appraisals Oliver Industrial Park - Acquisition Chris Michael Residential $4,200.00 Witwer Residential Area (13 parcels) Appraisals Appraisals Douglas Road -LaCluyze Acquisition RE Pitts & ROW $2,475.00 Schalliol Parcel Associates Appraisal Douglas Road -LaCluyze Acquisition RE McCloskey ROW $3,400.00 Schalliol Parcel & Associates Appraisal Douglas Road -LaCluyze Acquisition Ralph Lauver ROW $3,500.00 Schalliol Parcel Appraisal 57 properties on Franklin, Acquisition Meridian Title work $6,100.00 Witwer Lafayette, Garst and Stull TOTAL $23,575.00 Upon a motion by Mr. Downes, seconded by Dr. Varner and unanimously carried, the Commission ratified the services contracts entered into by staff since June 13, 2008. 6. NEW BUSINESS (CONT.) L Ratification of Temporary Use Agreements COMMISSION RATIFIED THE SERVICES CONTRACTS ENTERED INTO BY STAFF SINCE JUNE 13, 2008 User/Agency Lot Event Dates of Use College Football Hall of Colfax St. Parking Hang banner advertising June 20 -July 21 Fame Garage Enshrinement Festival College Football Hall of Wayne St. Parking Hang banner advertising June 20 -July 21 Fame Garage Enshrinement Festival United Way of St. Joseph Wayne St. Parking Hang banner advertising June 21 County Garage EcoFest 44 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) L Ratification of Services Contracts continued... Upon a motlOn by Mr. DOWneS, SeCOnded by Dr. COMMISSION RATIFIED THE TEMPORARY USE Varner and UnanlmOUSly Carrled, the COmmisslOn AGREEMENTS ENTERED INTO BY STAFF SINCE ratified the Temporary Use Agreements entered THE JUNE 13, 2008 MEETING into by staff since the June 13, 2008 meeting. J. Other (1) Commission approval requested for Engagement Letter with Sopko, Nussbaum, Inabnit &Kaczmarek. (Outside counsel) Mr. Inks noted that staff has been using Richard Nussbaum to assist as outside counsel on a number of projects, with the approval of the City Attorney. This Letter of Engagement authorizes another $60,000 for such services. Mr. Leone noted that the projects to be worked on by Mr. Nussbaum will be approved on a case-by-case basis. As projects come up, the City Attorney's office will consider whether they have the in-house time and expertise for them or whether they will be referred to outside counsel. Dr. Varner asked that claims for these services be submitted to the Commission with projects identified. Mr. Inks agreed. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE ENGAGEMENT Dr. Varner and unanimously carried, the LETTER WITH SOPKO, NUSSBAUM, INABNIT & COmmISSIOn apprOVed the Engagement KACZMAREK FOR OUTSIDE COUNSEL Letter with Sopko, Nussbaum, Inabnit & Kaczmarek for outside counsel. 45 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) (2) Commission approval requested for TIF Notification Requirement under HEA 1001. Mr. Inks explained that the packets included lists of projects currently under consideration for the six TIF areas. The lists include the anticipated TIF revenue for 2009. The debt service committed from each area is also listed. This is part of the requirement under HEA 1001 that the Commission look each year at the available revenues, the projects planned for each area and come to a conclusion that there is or is not excess value that can be released in each TIF area. Mr. Inks noted that the list for the Airport Economic Development Area has changed since the Commissioners received their packets. The revised list reorders the list so that LaSalle Square and the nanotechnology center are at the top of the list, reflecting the Common Council's desire to see that order rather than alphabetical order. The remainder of the list is alphabetical, not by priority. Mr. Inks noted that these lists are in anticipation of Agenda item 6.J.(3). Upon a motion by Mr. Downes, seconded by Dr. Varner and unanimously carried, the Commission approved the TIF Notification Requirement under HEA 1001. (3) Commission approval requested for Resolution No. 2465 determining that the tax increment which may be collected in the year 2009 is needed to satisfy obligations of the Commission and that no excess assessed value may be allocated to COMMISSION APPROVED THE TIF NOTIFICATION REQUIREMENT UNDER HEA 1001 46 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) J. Other (3) continued... the respective taxing units and other related matters. Mr. Inks noted that Resolution No. 2465 determines that based on the obligations and projects planned for 2009, there will be no excess tax increment available to the other taxing units in 2009. Mr. Inks stressed that this statement pertains only to 2009. The notice is due to the assessor by July 15, and this is the last Commission meeting before that date. Mr. Inks assumes that there will be a more thorough look at priorities for 2010. Dr. Varner asked whether "obligation" means what we would like to do, or does it mean debt service. Mr. Inks responded that these lists are not true "obligations." The vast majority are not contractual, other than the debt service. They are things we are planning to do to use the money. Dr. Varner questioned whether, then, the Commission can certify that all the TIF is needed for "obligations." Mr. Inks agreed that he may have used the wrong word. The law only requires that you state that the projects you have planned and the obligations you have to meet require all of the TIF. The letter attached to Resolution No. 2465, which is the letter that will be sent out, does not use the word "obligations." Mr. Downes made a motion to approve Resolution No. 2465 determining that the tax increment which may be collected in the year COMMISSION APPROVED RESOLUTION NO. 2465 DETERMINING THAT THE TAX INCREMENT WHICH MAY BE COLLECTED IN THE YEAR 2009 IS 47 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) J. Other (3) continued... 2009 1S needed t0 Satlsfy ObllgatlOriS Of the NEEDED TO SATISFY OBLIGATIONS OF THE COmmISSIOn and that n0 eXCOSS assessed COMMISSION AND THAT NO EXCESS ASSESSED VALUE MAY BE ALLOCATED TO THE RESPECTIVE Value may be allOCated t0 the respectlve TAXING UNITS AND OTHER RELATED MATTERS taxing units and other related matters. Mr Blake seconded the motion. The motion carried on a vote of three to one with Dr. Varner opposed (4) Commission approval requested for proposal for financial consulting services. (TIF Neutralilzation Worksheets) Mr. Inks noted that every year, with trending, the assessed values changes based on the new trending amounts. So, every year we need to go through and figure out the new base assessed value in the TIF areas. That's called a neutralization calculation. We usually hire Crowe Chizek and we recommend doing that again this year. The contract is for anot-to- exceed amount of $20,000. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal for financial consulting services and accepted the proposal from Crowe Chizek for the scope of services and fee proposed. (TIF Neutralilzation Worksheets) (5) Commission approval requested for proposal for financial consulting services. (TIF Replacement Worksheets) Mr. Inks noted that the Replacement Worksheets. There is a Replacement Tax COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR FINANCIAL CONSULTING SERVICES AND ACCEPTED THE PROPOSAL FROM CROWE CHIZEK FOR THE SCOPE OF SERVICES AND FEE PROPOSED. (TIF NEUTRALILZATION WORKSHEETS 48 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) J. Other (5) continued... Levy that is allowed under HEA 1001 in situations where the development area does not generate enough tax revenue to support its true obligations, in the sense of contractuals. We may have areas where that comes into play, specifically, the downtown. We need to look at that and see if that makes any sense. We are asking, again for anot-to- exceed contract for $20,000. We don't think it will come to that much. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal for financial consulting services and accepted the proposal from Crowe Chizek for the scope of services and fee proposed (TIF Replacement Worksheets) (6) Commission approval requested for proposal for financial consulting services. (TIF Calculation and Notification) Mr. Inks noted that Crowe is working on some updated TIF numbers for us for 2009 to supplement the information we just looked at on the project list and the notification to the auditor. This is a similar contract to the other two in anot-to-exceed amount of $20,000. The cost should be significantly less than that. It will be billed hourly. Dr. Varner asked how this contract is different than what we've asked Umbaugh to do. Mr. Inks responded that he has discussed with Crowe that we will make Umbaugh's COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR FINANCIAL CONSULTING SERVICES AND ACCEPTED THE PROPOSAL FROM CROWE CHIZEK FOR THE SCOPE OF SERVICES AND FEE PROPOSED (TIF REPLACEMENT WORKSHEETS 49 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 6. NEW BUSINESS (CONT.) J. Other (6) continued... numbers available to them. If there is any adjustment, that needs to be made. They are slightly differently purposes, but a lot of the work that Umbaugh is doing should be able to be picked up and used by Crowe. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the request for proposal for financial consulting services and accepted the proposal from Crowe Chizek for the scope of services and fee proposed. (TIF Calculation and Notification) 7. PROGRESS REPORTS Mr. Inks reported that the Common Council approved the amendment to the South Bend Central Development Area Development Plan adding the East Bank Master Plan to the Development Plan at its meeting on June 23. The next step is to set a public hearing for the next Commission meeting at 10:00 a.m., July 18, with a publication date of July 3, 2008. Mr. Inks pointed out that the list of services contracts included title searches for 57 properties, so that the total contract was for $5,700. These are properties on the eastern edge of the Studebaker Industrial Park. As we look at the MIND project, we wanted to get a better sense of ownership and property issues around that, so, while the Commission's authorization allowed the staff to spend $100 per title search, staff didn't know if the Commission meant that it could get 57 of them in one fell swoop. Staff just wanted to make sure the Commission realized what staff was doing with that. COMMISSION APPROVED THE REQUEST FOR PROPOSAL FOR FINANCIAL CONSULTING SERVICES AND ACCEPTED THE PROPOSAL FROM CROWE CHIZEK FOR THE SCOPE OF SERVICES AND FEE PROPOSED. (TIF CALCULATION AND NOTIFICATION PROGRESS REPORTS 50 South Bend Redevelopment Commission Rescheduled Regular Meeting -June 25, 2008 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for Friday, July 18, 2008 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Dr. Varner made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 12:40 a.m. ~~ .. - ~a1~'E ;;iliso~~ ~ .. .. . NEXT COMMISSION MEETING ADJOURNMENT :. 51