Loading...
HomeMy WebLinkAbout02-14-13 Redevelopment Commission Minutes.docx SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING February 14, 2013 9:30 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Dr. David Varner, Vice President Mr. Donald Alford Sr., Secretary Mr. Greg Downes Mr. Henry Davis Mr. John Stancati Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff. Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. David Relos, Economic Development Specialist Mr. Jitin Kain, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mr. Scott Ford, Executive Director Mr. Chris Dressel Ms. Liz Maradik Mr. Aaron Perri, Downtown South Bend, Inc. Ms. Mo Miller Mr. Erin Blasko South Bend Tribune Mr. Cecil Eastman, Admin & Finance 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, January 24, 2013 Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Thursday, January 24, 2012. 1 South Bend Redevelopment Commission Regular Meeting—February 14, 2013 3. APPROVAL OF CLAIMS 324 AIRPORT AREA DHA 2,210.00 Ignition Park Cressy& Everett Mgmt Corp 3,761.50 Bosch Site Fisher Scientific Co. LLC 16,376.69 F Cubed Mavcon Properties, LLC 4,000.00 LaSalle Hotel Testequity 3,573.74 F Cubed Hull&Associates, Inc. 5,540.00 Brownfields State Barricading, Inc. 4,180.00 United Drive barricading Shaffner Heaney Associates Inc. 84,105.12 Ignition Pk Lang Feeney&Associates, Inc. 495.00 Easement& Legal Description Plews Shadley Racher& Braun 4,732.00 Legal Service All-Phase Electric Supply Co 717,362.59 Union Station Technology Center Meridian Title Corporation 600.00 Blackthorn/Golf Course Title Search Weaver Boos Consultants 1,778.09 Ivy Tower Plews Shadley Racher& Braun 5,009.44 Cost Recovery/Olive Plow Wks Braintree Scientific, Inc. 2,900.00 F Cubed South Bend Tribune 93.83 Ignition Pk DLZ 12,340.00 So. Bend-Olive Rd/Pine Rd Owners Association at Blackthorn, Inc. 47,579.45 Blackthorn Corporate Park BSA LifeStructures 69,545.08 Ignition Pk DHA 2,850.00 Survey AEP 21,589.38 Bosch 420 FUND TIF DISTRICT-SBCDA GENERAL Cressy& Everett Mgmt Corp 645.75 Management Services Agreement for Bosch Site CB Richard Ellis 726.53 Management Fee LaSalle Hotel Buxton Identifying Customers 15,000.00 Basic& Retail Matching Access South Bend Water Works 191.95 Property Management North American Signs 2,320.00 Signage Removal at College Football Hall of Fame DTSB 21,250.00 Streetscape Enhancements& Business Recruitment Carl Walker 1,226.00 Wayne St. Parking Garage Hull&Associates, Inc. 457.50 Extended General Consulting 422 TIF DISTRICT WEST WASHINGTON South Bend Heritage Foundation, Inc. 6,695.00 Historic Rushton 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT The Troyer Group 1,192.50 SB-Fagade Studies Skyway Memorial Hospital Holladay Construction Group 57,906.00 Memorial Hospital Fagade 2 South Bend Redevelopment Commission Regular Meeting—February 14, 2013 3. APPROVAL OF CLAIMS (CONT.) 429 TIF FUND NORTHEAST DISTRICT Jackson Trucking&Excavating 22,063.75 Northeast Demolitions:AEP 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA 41 Jones Petrie Rafinski 1,935.00 R/W Layout& R/W Engineering Services Cardno JFNew 5,065.75 Fellows St& Ireland Rd Intersection Improvements Buxton 15,000.00 Scout Subscription Renewal Christopher B. Burke Engineering 3,308.00 Corridor Improvements Fellows St South Bend Tribune 113.85 Notice to Bidders Tri County News 67.29 Notice to Bidders 1.190.243.08 Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Claims submitted February 14, 2013. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. South Bend Central Development Area (1) Resolution No. 3122 authorizing and ratifying execution of documents related to the First Source Bank Building by the Director of the Department of Redevelopment on behalf of the City of South Bend, Indiana, Department of Redevelopment (Fifth Amendment to Operation, Maintenance and Easement Agreement) Mr. Inks noted that at the last Redevelopment Commission Meeting, the Commission was presented with several estoppels. Mr. Richard Nussbaum made a presentation covering the Fifth Amendment. However, the motion that was made only pertained to the estoppels, so acting under the Resolution No. 3116 that gave Mr. Inks authorization to sign certain administrative documents, he signed the Fifth Amendment to the Operation, Maintenance and Easement Agreement. Legal counsel recommended bringing the action before the Commission for ratification. Mr. Inks noted that the Fifth Amendment simply recognizes the change of ownership replacing Host as owner with Jenna Hotel Investment, LLC, the new owner. 3 South Bend Redevelopment Commission Regular Meeting—February 14, 2013 6. NEW BUSINESS A. South Bend Central Development Area (1) continued... Ms. Jones asked Mr. Inks to please refresh the Commission's memory on the history of this group of transactions, particularly who is responsible for maintenance and whether there is any more money changing hands. Mr. Inks responded that the original transaction was to acquire the garage for $6.5 million. All of the funds from the acquisition of that parking garage were put into three separate escrow accounts: one for 1s' Source Bank, one for the hotel side, and one for the atrium. All of the escrow accounts had private investment numbers that had to be met. 1St Source had to invest a certain amount of money before they could draw against the escrow account. They have made that investment and that escrow account has been fully drawn down. The hotel has made all of its investment and that escrow account has been drawn down as well. Over half of the private investment on the atrium has been done and no draws have been made against that account because it is a one- time draw. Once they meet their investment the whole escrow is dispersed. The Commission has no responsibilities for the garage operation and maintenance. We have entered into a use management operation agreement with the both the owner of the hotel and the owner of the 1St Source Bank side of the project. Under the agreement, both parties are responsible for all maintenance and operations of the garage, including all capital costs. At the end of the agreement, garage ownership reverts to that group, so that there is no liability at the end of that term that would result in the city taking over ownership of a garage in need of repairs, nor will there be any other continuing liability. Mr. Varner asked if the garage remains taxable. Mr. Inks responded that it does. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 3122 authorizing and ratifying execution of documents related to the First Source Bank Building by the Director of the Department of Redevelopment on behalf of the City of South Bend, Indiana, Department of Redevelopment (Fifth Amendment to Operation, Maintenance and Easement Agreement) (2) Proposal for furniture repair or placement in the downtown. Mr. Relos noted that over the past decade the Commission, along with Downtown South Bend (DTSB), has acquired downtown furniture that has provided a cohesive look and feel to the downtown experience. During this time, DTSB has maintained the furniture by making minor repairs, painting, cleaning, removing graffiti and stickers, etc. In an effort to continue the beautification of the downtown area, the current furniture needs more costly repairs or replacement. DTSB has compiled a list of these needs with a total cost of $15,558.60. Staff requests approval of this funding request. 4 South Bend Redevelopment Commission Regular Meeting—February 14, 2013 6. NEW BUSINESS A. South Bend Central Development Area (2) continued... Mr. Varner asked if this proposal adds any new furniture or repairs or replaces the existing. Mr. Relos responded that it's just for repair and replace. Mr. Downes noted that the staff memo referenced establishment of a fixed annual lifecycle renewal fund for repair and replacement of the furniture. Then, instead of having to approach the Redevelopment Commission from time to time to ask separately for funds, the Commission could approve it once a year during the budget process. Mr. Inks agreed that DTSB will review the furniture on an annual basis and identify what will need to be repaird and replaced. Upon a motion by Mr. Downs, seconded by Mr. Alford, and unanimously carried, the Commission approved the proposal for furniture repair or placement in the downtown DTSB area as listed. (3) Proposal of Residential Market Potential for downtown South Bend. Mr. Kain noted that staff solicited a proposal from ZimmermanNolk Associates, Inc. for conducting a study of residential market potential in downtown South Bend. ZimmermanNolk Associates, Inc. is a nationally known expert, specializing in the analysis of compact and sustainable development; mixed-income, mixed-tenure redevelopment; mixed-use urban revitalization; traditional neighborhood developments; and integrated-use master-planned communities. Over the last two years, downtown South Bend has seen some exciting new residential development with potential for additional development in coming years. As the city continues its efforts to encourage more residential development in downtown, many in the development community have asked for a market analysis of the demand and capacity for downtown residential. The scope of services for this analysis includes determining: • Where the potential renters and buyers of newly-created housing units in Downtown South Bend are likely to move from(the draw areas); • Who currently lives in the draw areas and what they are like (the target markets); • How many are likely to move to the Downtown if appropriate housing units were to be made available (depth and breadth of the market); • What their housing preferences are in aggregate (rental or ownership, multi-family or single-family); • What are they currently willing to pay to rent or purchase newly-created dwelling units within the Downtown; • What their alternatives are (new construction or existing housing stock in the South 5 South Bend Redevelopment Commission Regular Meeting—February 14, 2013 6. NEW BUSINESS A. South Bend Central Development Area (3) continued... • Bend market area); and • How many newly-created dwelling units can be leased or sold within the Downtown over the next five years (absorption forecasts). Staff requests approval of the proposal in the amount of$38,000 from the SBCDA TIF. Mr. Downes asked if there had ever been a downtown residential study done for the City of South Bend, and if so, how long ago. Mr. Kain responded that he didn't believe we've ever done a market analysis for downtown. Through Buxton, we've studied the retail potential for downtown. We asked Buxton if they could expand their study and add residential, but they cannot. Mr. Inks responded that the last study that was done near the downtown area was for the West Washington area approximately 10-15 years ago. There is nothing current. Mr. Varner and Mr. Davis asked if there was any possibility that some of the local developers would be willing to participate in the cost of this study. They would benefit from it. A study like this will be out of date quickly. It would be nice if there were some other support. Mr. Kain responded that the study looks at a five-year forecast. If economic conditions change in the next few years, the study will have to be updated. As we talked to the developers, they have asked the City of South Bend to pay for this. It is the city that wants to encourage more residential development in the downtown. The study will become a catalyst for development interest downtown. Mr. Davis asked what the boundaries would be for this study. Mr. Kain responded that there are typically two boundaries for downtown. The downtown that is being referenced in the proposal is the CBD District, which is the zoning district and also mirrors the South Bend Central Development Area. Mr. Davis also said that the trend of people moving back into the inner city is a well- established trend. He fears South Bend is on the late end of the trend and housing that is built here will soon be abandoned. Mr. Kain responded that the study will consider the national trend. He believes the things Mr. Davis is concerned about will be clarified by the study. Mr. Alford noted that the study will be completed over a four month period. He asked how they will be paid. Mr. Kain responded that they will be paid based on deliverables. When Zimmerman/Volk Associates, Inc. completes a task they will be paid. Mr. Alford asked whether the final payment will be made after their presentation. Mr. Kain responded that it will. 6 South Bend Redevelopment Commission Regular Meeting—February 14, 2013 6. NEW BUSINESS A. South Bend Central Development Area (3) continued... Mr. Downes noted that looking backward, this kind of data would have been useful when the decision was made about America Trust Place, and both of David Matthews' projects. Now looking forward the Hotel LaSalle. In order for the Redevelopment Commission to make good decisions going forward, we need this data. Ms. Jones asked when Mr. Kain engaged Zimmerman/Volk did they provide us with other studies they have done for similar size cities; and did they provide outcomes based on those studies and how the communities used it. Mr. Kain responded that he did receive information of studies from other cities. Also, without Zimmerman/Volk's knowledge, he reached out to the Redevelopment Director in Montgomery, AL which had the study done, asking if it had been useful in their decision making. They said it is wonderful; it is used continually, and they have even updated their study. They highly recommended Zimmerman/Volk Associates, Inc. Mr. Meteiver said that Legal has not had an opportunity to review the contract. He asked that it be approved, subject to Legal review. Mr. Davis asked Mr. Meteiver to explain what the subject to legal approval of the final terms of the contract means. Mr. Meteiver responded that this contract is not in line with our normal professional services contract, and would like to look at it line by line so there is nothing in it that will create any problems. Mr. Downes made a motion to accept the proposal for a analysis of the residential market potential for downtown South Bend for the scope of services and fee proposed, subject to legal review. Mr. Varner seconded. The motion carried on a vote of five to one. Mr. Davis opposed. B. Airport Economic Development Area (1) Amendment to Purchase Agreement with Richard C. Hamilton and Hamilton Body Shop,Inc. Mr. Relos noted that in May 2012 the Commission entered into a staged Purchase Agreement to acquire the three properties owned by Richard Hamilton and Hamilton Body Shop, 802, 910, and 917 S. Lafayette. In June 2012, closings were held on 802 and 910 S. Lafayette, with a date of our possession of 910 S. Lafayette to be March 31, 2013. Hamilton plans to auction unneeded equipment from their operations, and would like to stage the auction at 910 S. Lafayette. With uncertainty as to how the winter and early spring season will unfold, Hamilton would like an extra month to accommodate their sale and empty the building. Staff is currently working on demo specs, and will eventually bid the 7 South Bend Redevelopment Commission Regular Meeting—February 14, 2013 6. NEW BUSINESS B. Airport Economic Development Area (1) continued... job of cleaning and clearing this site. The extra month Hamilton is requesting will not hamper this work, and is in fact more in line with when the work can be completed. Staff requests approval of this Amendment to Purchase Agreement, extending the date of possession for 910 S. Lafayette from March 31 to April 30, 2013. Mr. Downes made a motion to approve the Amendment to Purchase Agreement with Richard C. Hamilton and Hamilton Body Shop, Inc., Mr. Varner seconded. The motion carried on a vote of five to one. Mr. Davis opposed (2) Change order to Data Realty facade enhancement design services. Mr. Kain noted that on July 26, 2011, the Redevelopment Commission approved a professional services contract with BSA LifeStructures for design services for the Data Realty facade project. The approved amount was $77,500 with the understanding that if BSA Lifestructures were to be hired as the architects for the overall Data Realty project, then the facade design fees would be discounted to $57,500. After BSA was chosen as the overall project architects by Data Realty, staff moved $20,000 from the project PO towards other facade expenses, upon Commission approval. The attached letter from BSA shows that additional expenses have been incurred by the architects on the facade enhancement side of the project and are seeking reimbursement. Staff seeks approval to increase the BSA PO in the amount of$7,000 from the AEDA TIF. Mr. Downes asked if the extra expenses were in any way BSA's fault. Mr. Kain responded that the expenses were unanticipated, so no one is at fault. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the change order to Data Realty facade enhancement design services. C. South Side Development Area (1) Resolution No. 3121 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Main-Lafayette Connector—Construction Inspection Services) Mr. Schalliol noted that Resolution No. 3121 authorizes the Board of Public Works to oversee an inspection services contract for the Main-Lafayette Connector. Because of the complexity and scope of the Main-Lafayette Connector project, it was determined by the Engineering Division that this project would be best served if an outside vendor provided construction inspection services for the project. Lawson-Fisher Associates P.C., the project 8 South Bend Redevelopment Commission Regular Meeting—February 14, 2013 6. NEW BUSINESS C. South Side Development Area (1) continued... engineer, has submitted a not-to-exceed proposal in the amount of$144,320.00, with a $110.00/hour hourly rate, to provide these services. There is an additional not-to-exceed $8,000.00 budget amount to cover submittal reviews and plan modifications. The total project amount is a not-to-exceed amount of$152,320.00. Staff requests approval of Resolution No. 3121 and the Addendum to Master Agency Agreement for the Main- Lafayette Connector—Construction Inspection Services Project. Mr. Varner asked if these type of contracts are typically a percentage of the project cost. Mr. Schalliol responded that typically 8-10 percent. This contract will be billed at an hourly rate. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved Resolution No. 3121 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Main-Lafayette Connector—Construction Inspection Services). D. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. F. Douglas Road Development Area There was no business in the Douglas Road Development Area. G. Ratification of Services Contracts Mr. Inks noted that the list of service contracts submitted for ratification are all title work to clean up the portfolio and transfer properties from to Redevelopment Commission to Board of Public Works to the Parks Department. We are verifying the ownership to make sure that the records are clean. Mr. Downes asked when someone does this many and are all associated in the same area, is there a way to get a discount. Mr. Relos responded that they already provide a discount. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission ratified the services contracts approved by staff since January 24, 2013. 9 South Bend Redevelopment Commission Regular Meeting—February 14, 2013 7. PROGRESS REPORTS Mr. Davis announced that he will not be serving on the Redevelopment Commission in 2013. His other outside commitments are taking more of his time than he anticipated. He said he has appreciated his opportunity to serve this past year and has learned a lot from the experience. 8. NEXT COMMISSION MEETING The Next Regular Meeting of the Redevelopment Commission is scheduled for 9:30 a.m., February 28, 2013. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Varner made a motion that the meeting be adjourned. Mr. Alford seconded. The meeting was adjourned at 10:08 a.m. D ald E. Inks, Director Marcia I. Jon , esident 10