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HomeMy WebLinkAboutRedevelopment Commission Minutes 11.20.23South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, IN SOUTH BEND REDEVELOPMENT COMMISSION SCHEDULED REGULAR MEETING November 20, 2023 — 9:32 am https://tinyurl.com/RedevelopmentCommission or BPW 13th Floor Presiding: Marcia Jones, President The meeting was called to order at 9:30 a.m. 1. ROLL CALL Members Present: I Marcia Jones, President — IP Others Present: Caleb Bauer Erik Glavich Rosa Tomas Sarah Schaefer Jitin Kain Zach Hurst Leslie Biek Charlotte Brach Gemma Stanton Patrick Sherman Lisa Lee Devereaux Peters Mark Peterson Frank Perri Sue Kesim Matt Barrett Katrina Marquardt IF V DCI DCI DCI DCI Engine Engine Engine Engines Engine VPA Ice Mill WNDU MonreE Reside Reside Reside Reside Troy Warner, Vice -President — IP Vivian Sallie, Secretary - IP David Relos, Commissioner — IP Leslie Wesley, Commissioner - V Eli Wax, Commissioner Sandra Kennedy, Esq. Members Absent: Legal Counsel: Danielle Campbell, Asst. City Attorney Mary Brazinsky Sears, Board Secretary Redevelopment Staff: Joseph Molnar, Property Manager Others Present: Caleb Bauer Erik Glavich Rosa Tomas Sarah Schaefer Jitin Kain Zach Hurst Leslie Biek Charlotte Brach Gemma Stanton Patrick Sherman Lisa Lee Devereaux Peters Mark Peterson Frank Perri Sue Kesim Matt Barrett Katrina Marquardt IF V DCI DCI DCI DCI Engine Engine Engine Engines Engine VPA Ice Mill WNDU MonreE Reside Reside Reside Reside South Bend Redevelopment Commission Regular Meeting — November 20, 2023 Upon a motion by Commissioner Relos, seconded by Vice -President Warner, the motion carried unanimously, the Commission approved a Real Estate Purchase Agreement (Mary Coyne 214 W Wayne) submitted on Monday, November 20, 2023. 3. Budget Request (Safe Routes to School) Gemma Stanton Presented a Budget Request (Safe Routes to School). The request before you is for $155,250 for a professional service agreement for safe routes to school project at Muessel primary, Holy Cross and Our Lady of Hungry neighborhoods. The amount is for survey work on sidewalks, curbs, and ramps. INDOT will cover 80% of the amount, however, the city will need to pay the full amount up front. Vice -President Warner if the reimbursement comes back to the commission. Caleb Bauer responded yes Sue Kesim, 422 Kennedy Drive, resident, pointed out the sidewalks going to John Marshall are rubble along Springbrook Drive and along Byron. Since a lot of people walk there including the Jewish community walking to synagogue, she would like to see these included in this project. Gemma Stanton replied that those areas cannot be included in this project funded by INDOT as they have to stay within the specific boundaries. Those areas can be looked at with a future project. Upon a motion by Vice -President Warner, seconded by Secretary Sallie, the motion carried unanimously, the Commission approved Budget Request (Safe Routes to School) submitted on Monday, November 20, 2023. 4. Resolution No. 3581 (Accepting Transfer of Property from BPW Carroll St) Joseph Molnar Presented Resolution No. 3581 (Accepting Transfer of Property from BPW Carrol Street). BPW acquired the property in 2022 near the downtown post office. By transferring the property, the city can put this property through the disposition process in the future. Commission approval is requested. Upon a motion by Commissioner Relos, seconded by Vice -President Warner, the motion carried unanimously, the Commission approved Resolution No. 3581 (Accepting Transfer of Property from BPW Carrol Street) submitted on Monday, November 20, 2023. 5. Development Agreement (Monreaux) Erik Glavich Presented a Development Agreement (Monreaux). The Monreaux project at 505 S Michigan Street is a LIHTC project. Deveraux Peters is the developer. This will be a four-story building of 65k square feet. This will be a minimum of sixty apartments at low income. Twenty-three units are in the 50% AMI and twenty-three will be at 80%AMI. The agreement is for $2.3M in RDC funding. Total project cost is $16M. Project is to be completed within 3 years of South Bend Redevelopment Commission Regular Meeting — November 20, 2023 improvements started. Commissioner Relos asked if they are to be used for designated project work. Mr. Bauer replied they are for LPI (local public improvement). Commissioner Relos asked about the pictures one shows a deck on the back with a garden space. Ms. Peters stated it will be a community space with a walking path, grills, and patio seating for tenants with a garden area to congregate and have guests. Secretary Sallie asked about the retail space on the first floor as part of the plan. Ms. Sallie asked if the building would have on-site management. Ms. Peters stated that yes, there will be on-site management. Sue Kesim, 422 Kennedy, resident asked for the total expected expenditure of the project. Mr. Bauer stated $16M. Sue Kesim asked since it is a mixed-use space on the first floor, will there be a grocery store. Will there be space on the first floor that they will be held accountable for. Mr. Bauer stated that there is no requirement on use of the retail space. In the past when the commission has made a recommendation of space, there was a consideration of TIF funds that was commensurate to asking for an additional commitment for type of use in the retail space. There is no requirement on type of use in this project, but we certainly would want to see viable retail in the downtown area. This plays into that strategy. Sue Kesim stated that Barnes and Thornburg still has no retail on the first floor Mr. Bauer stated that there is a coffee shop on the first floor Sue Kesim stated that it does not fill up the majority of the space. She is asking about the requirements because for her it has not worked out in the past. Ms. Peters stated that a market study was performed of downtown area to negate what Ms. Kesim is stating. These units are not simply retail space. The units are residential as well and will be filled. There is a small retail area where residents or entrepreneurs can work out of those, but they are still residential units. There will not be the issue of vacancy as people will be living there. Matt Barrett, 110 S Niles asked when the documents were first drafted as he has asked for revision to documents, but he does not want to change documents that are already in process. South Bend Redevelopment Commission Regular Meeting — November 20, 2023 Mr. Bauer stated that the resolution establishes the ability for the EDC and the Common Council to enter into the loan agreement document which will be contemplated and stipulated in the actual loan agreement. In the previous agreement mentioned, there was interest levied. If the loan is forgiven, then there is no interest payable. This will go through the EDC then the Common Council and return to the RDC for final authorization. This resolution commits the funding but not committing the RDC to the loan yet, we will come back for that agreement. Mr. Barrett asked, in theory, there is no interest on the loan, and it is coming from RDC money. There is no bond issuance. And the city is not paying any interest. Vice -President Warner stated is the building fails to be built, the loan will be paid back with interest accrued on that. Mr. Bauer stated that there is a request for an amendment proposed. Amending section two language stating that the funding would be provided up front to the developer with the forgiveness still stipulated on successful completion of the project. IHCDA has a tighter timeline than 36 months that is a holdover from the language in the real estate purchase agreement. IHCDA compliance will begin on January 1, 2024, which gives the project 2 full calendar years to complete the project. The city is giving 3 years. Sue Kesim asked if there are ADA compliant apartments and how many. Ms. Peters noted that there are ten fully accessible. But the other six can be converted into ADA units. Vice -President Warner stated we have been working with Ms. Peters for 18 months and it is an exciting project. The project is very transformative for the neighborhood. Mr. Warner stated he was at Notre Dame talking to another developer with HUD housing and the difficulties municipalities are having to get creative on market rate apartments with the funding gap using different tools such as tax abatements. He was very complementary of South Bend and the use of creativity. He was familiar with the housing tax credits and that we are including the announcement for one this year. We are going to have to continue to be creative to solve the housing crisis. Commissioner Wesley thanked Deveraux and is excited with the innovative vision and excited with the vision in coming back investing in South Bend. Upon a motion by Vice President Warner, seconded by Commissioner Relos, the motion carried unanimously, the Commission approved Resolution No. 3580 (Monreaux) with the amendment of section 2 to strike payment at final completion and add payment upon the execution of the agreement by the parties and approval by all necessary entities submitted on Monday, November 20, 2023. Upon a motion by Vice President Warner, seconded by Secretary Sallie, the motion carried unanimously, the Commission approved Resolution No. 3580 (Monreaux) as amended submitted on Monday, November 20, 2023. South Bend Redevelopment Commission Regular Meeting — November 20, 2023 we had a population of 132,000 people which is 30,000 more than we have today. Current traffic counts do not warrant the cloverleaves as they exist today. This is the process to study their model of removal of the cloverleaf and put in a system of street networks. You will still have access as the street network will not go away. Ms. Kesim stated that Steel Warehouse and Lippert are two major employers that are expanding. It may not be Studebaker, but it helps people from the South Side get to the West side, Beacon, and city employees as well. Vice -President Warner stated that he has seen drawings and residents will still be able to use the streets efficiently. The massive clover leaves taking up space will just be removed, and the area utilized. Ms. Kesim stated it seems like there is just more gridlock while driving to work in South Bend. Upon a motion by Vice -President Warner, seconded by Commissioner Relos, the motion carried unanimously, the Commission approved Budget Request (Market District Planning Contract) submitted on Monday, November 20, 2023. C. Administrative 1. RDC General Report Caleb Bauer Presented the Commission with a General Report. Mr. Bauer re- introduced the TIF Districts to the Commission. The city has seen continued growth projections of TIF for 2023. We are seeing continued growth in revenues above our conservative projections. Baker Tilly will prepare new projections the will be more reflective of the current environment. Mr. Bauer outlined a few major upcoming and ongoing projects including rebuilding our streets, the downtown plan process, central fire station roof replacement with solar installation, south side neighborhood park, SBCSC career center, acquisition of low -barrier intake center, land bank startup costs in partnership with St. Joseph County and continued implementation of Neighborhood Improvement bonds. Mr. Bauer stated in the Department of Community investment we are committed to opportunities. READI 2.0 is a program in which we will be applying in April 2024 for up to $75M in awards for the state. The 2.0 program will only be able to fund infrastructure projects or brick and mortar buildings. We are working on federal opportunities such as the reconnecting communities grant re-application, RAISE grant design, EV charging infrastructure grant and choice neighborhoods initiative plan. The department is also working on both neighborhood and downtown plan implementations. Mr. Bauer noted the departmental goals for 2024 which included continued focus on new neighborhood housing initiatives to minimize the appraisal gap and move more vacant lots to constructive uses. The adoption and implementation of Monroe, Edgewater, LaSalle, and River Park neighborhood plans. Ongoing focus South Bend Redevelopment Commission Regular Meeting — November 20, 2023 7. Next Commission Meeting: Thursday, December 14, 2023 8. Adjournment Monday, November 20, 2023, 11:00 am Vivian Sallie,`Vice-President ":IU Marcia Jones, Pres nt