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HomeMy WebLinkAbout2A Redevelopment Commission Minutes 9.26.24 CITY OF SOUTH BEND REDEVELOPMENT COMMISSION SOUTH BEND REDEVELOPMENT COMMISSION MINUTES September 26, 2024, at 9:30 a.m. BPW Conference Room, 13th Floor, County-City Building https://tinyurl.com/RedevelopmentMeeting9262024 The South Bend Redevelopment Commission was called to order at 9:30 a.m. President Troy Warner presiding. 1. ROLL CALL Members Present: Troy Warner, President David Relos, Vice President Vivian Sallie, Secretary Eli Wax, Commissioner Leslie Wesley, Commissioner Legal Staff: Danielle Campbell Weiss, Asst. City Attorney Sandra Kennedy, Corporation Council - Virtual Redevelopment Staff: Caleb Bauer, Exec. Director, DCI Sarah Schaefer, Deputy Director, DCI Erik Glavich, Director of Growth and Opportunity, DCI Joseph Molnar, Asst. Dir. of Growth and Opp., DCI Erin Michaels, Property Development Manager, DCI Allison Doctor, Project Manager- Environmental & Brownfield, DCI Laura Hensley, Board Secretary, DCI Others Present: Zach Hurst, Senior Engineer, Public Works Patrick Sherman, Project Manager, Public Works Jeff Parrott, WVPE Adam Scharff Lauren Smyth, St. Margaret’s House Katie Elliot, St. Margaret’s House CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September,26, 2024 2 Matt Barrett, 110 S Niles Ave. Tina Patton, 707 Sherman Ave. 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, September 12, 2024 Upon a motion by Vice President David Relos for approval, second by Secretary Vivian Sallie, the motion carried unanimously; the Commission approved the minutes of the regular meeting of September 12, 2024. 3. Approval of Claims A. Claims Allowances 9/10/24 Upon a motion by Secretary Vivian Sallie for approval second by Vice President David Relos, the motion carried unanimously; the Commission approved the claims allowances of 9/10/24. 4. Old Business A. Staff Recommendations 410 W. Wayne RFP Joseph Molnar, Assistant Director of Growth and Opportunity presented that the proposals opened at the August 22nd meeting for the Old Gates Building on 410 W. Wayne St. have requested additional documentation from the developers that submitted proposals and request two (2) more weeks for staff to review. Mr. Molnar feels confident that staff will have firm recommendations at the next Redevelopment Commission meeting. Upon a motion by Commissioner Eli Wax to table for two (2) weeks this until the next meeting, seconded by Secretary Vivian Sallie, the motion carried unanimously; the Commission tabled the action as presented on September 26, 2024. 5. New Business A. Redevelopment Fund (a.k.a Pokagon Fund) 1. Budget Request (St. Margaret’s House) Sarah Schaefer, Deputy Director of Community Investment presented a budget request of $750,000 for the renovation and expansion of the CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September,26, 2024 3 area near St. James Church, St. Margaret's House, which provides services to homeless women and children. The purpose of the renovation and expansion is to have a more purposeful design geared towards the needs of St. Margaret's house guests. With the funding, they can serve more guests, have longer hours of operation and offer more programming. This will also increase the safety and security of their guests, staff and volunteers through the request. This would be matching funding contingent of fundraising, so they're embarking on a capital campaign. Ms. Schaefer reminded that the Pokagon Fund is to be used for education, health and poverty reduction. Ms. Katie Elliott and Ms. Lauren Smith from St. Margaret's House thanked the Commission for the opportunity to speak. Ms. Elliott also thanked staffs for all their help as well. Ms. Elliott stated that guests live in deep poverty, and they are the primary place of support for them. These are essential and tangible needs, but also their spiritual, emotional needs and are the primary provider for many of the women they see every day and what's good for St. Margaret's house health is good for South Bend. Ms. Elliott explained the needs of women they serve has increased and the request would help with the projected increase in meals served, programming rooms and spaces, loads of laundry, increased hours of operation to meet critical gaps and serve full hot breakfast and hot lunches daily. She stated that they have been working with an architect for 18 months into the planning of this renovation and will continue design, refinement and another key part is to redesign the green space on the corner of Lafayette in Washington for not only the benefit of St. James and St. Margaret’s House but the downtown community as well. Vice President David Relos asked if this is a new build and Ms. Elliott explained it is a complete redesign and will expand to the South and reorient the doors so that they're more visible to the South Bend community. The $7.5 renovation of the three-story (+basement) building with have a proper entryway for safety reasons to be able to assess and greet people at the door and approve if they're not well enough to come into the building either physically or emotionally. Ms. Elliott stated that they have $3.3 committed at this point. Commissioner Eli Wax asked how many women are serviced in a year and Ms. Elliott said about 1000 and approximately 70 women and children per day. Upon a motion by Secretary Vivian Sallie for approval, seconded by Vice President David Relos, the motion carried unanimously; the CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September,26, 2024 4 Commission approved the budget request as presented on September 26, 2024. B. River East Development Area 1. Budget Request (Northside Old YMCA Demolition) Zach Hurst, Senior Engineer, Public Works presented a budget request of $500,000 to augment the August 8th allotment of $1.25 million, which would provide a total budget of $1.75 million for the demolition of the former YMCA. Mr. Hurst explained that he underestimated the cost due to technical challenges which includes 11,000 square feet of sub-basement with a deep pool area that would require an estimated 1000 truckloads of fill to match surrounding grades. Commissioner Eli Wax asked if there is a possibility of rehabbing the building. Mr. Hurst stated that the building is damaged beyond repair due to vandalism. Joseph Molnar, Assistant Director of Growth and Opportunity confirmed that it is a hazard to the public even with the city doing everything possible to secure the building. Mr. Wax asked to give a ballpark estimate of the cost to rehab the YMCA and staff stated $7 million however, the layout of the building with large atrium space would not be conducive to rehab. Secretary Vivian Sallie asked of the possibility of getting additional bids and Mr. Hurst didn’t think that would save any money. Mr. Matt Barrett asked what responsibility the property owners have and can there be better enforcement. Caleb Bauer, Executive Director of Community Investment stated that our team enforces unsafe Indiana building laws that involve citation, and that can also involve board ups that are then billed to a property owner. He explained that the challenge at this site are the many entry points to this building, and some have been welded shut and reentry continues to occur. Ms. Tina Patton asked if M/WBE contractors are being used for this project and Mr. Hurst stated that demolition projects require trucking companies, and he would check with staff but anticipate they would be used. Commissioner Leslie Wesley asked why the city doesn’t tear down other historic buildings with damage. Caleb Bauer, Executive Director of Community Investment stated the city doesn’t have the resources to demolish every building and we prioritize buildings that first pose a risk to public safety and/or may collapse onto neighboring properties or into the city right-of-way. Mr. Bauer stated that we also look at the redevelopment aspect of the site for future use. Mr. Bauer also explained that with historic buildings, we prefer to revitalize and CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September,26, 2024 5 redevelop prior to demolition. President Troy Warner stated that the Commission agreed to take possession of the property, and the intent was to demolish the site for future development and even though the cost is more that should not change the plan on the riverfront. Secretary Vivian Sallie asked if staff anticipated additional requests and Mr. Hurst stated he didn’t think so. Secretary Sallie stated she felt it was an astronomical amount of money to demolish the building and understand there's issues. Mr. Bauer stated he is confident that there will be a return on this investment from the Commission, not in a terribly long-time frame. Upon a motion by Vice President David Relos for approval, seconded by President Troy Warner, the motion carried unanimously; the Commission approved the budget request as presented on September 26, 2024. 2. Stephenson Mills Gintz Dr. Agreement (First Amendment) Patrick Sherman, Project Manager, Public Works presented a multi- party agreement with Public Works, Redevelopment Commission, Notre Dame and the Park Board. The amendment allows us to do the work at Stephenson Mills. Vice President David Relos wanted clarification about a $200 per month payment for the delay and Mr. Sherman confirmed that was part of the agreement and it’s been 33 months. Matt Barrett asked for clarification about if it was a 2017 or 2019 agreement and Corporation Council Attorney Sandra Kennedy confirmed the date was 2019. Mr. Barrett also asked about the ADA curb in the rendering on page 32 and Mr. Sherman stated there would be ADA access to the building. Mr. Barrett also asked about page 46 under a previous agreement that the University would be responsible for the East Drive. Mr. Sherman explained that when the city started Seitz Park, we needed access for construction traffic and that was a benefit to the city. Mr. Sherman clarified that the University wasn’t involved in the $200 payment, it was for the city to continue to use the parking lot. Corporation Council Attorney Sandra Kennedy stated that the $200 is a delayed payment. So, because the original agreement was supposed to have been done in December 2021, the university paid up until a certain point and then the city took over due to our delays. Upon a motion by Vice President David Relos for approval, seconded by President Troy Warner, the motion carried unanimously; the Commission approved the first amendment to the agreement as presented on September 26, 2024. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September,26, 2024 6 6. Progress Reports A. Tax Abatement Erik Glavich, Director of Growth and Opportunity presented that the Common Council approved a declaratory resolution for an 8-year multifamily tax abatement for Property Bros., LLC. In June of this year, the Redevelopment Commission adopted both a purchase agreement and a development agreement for Property Bros. In support of phase two of a residential project that they are in the process of building at the corner of Lincoln Way and Sherman. Mr. Richardson, CEO of Property Bros. recently closed on lots and agreed to provide through a purchase agreement and acquiring the tax abatement. Once that tax abatement is confirmed at the next Common Council meeting that will enable property growth to proceed with the next phase of project in accordance with the purchase agreement and the development agreement. B. Common Council None C. Other Joseph Molnar, Assistant Director of Growth and Opportunity presented photos of the grocery store and also retail spaces at the corner of Western and Olive. This property was sold by the RDC for the development of a grocery store. Staff is very excited about the nice appearance of the building now that the masonry is complete and are hopeful for opening day in the Spring, the developer is on track to meet their requirements of the purchase agreement. Vice President David Relos asked about the Real America site at the Northwest corner of Lafayette and Monroe. Mr. Molnar stated they're actively constructing the LIHTC portion of the property. MACOG helped the city and Real America get a grant to do some limited environmental cleaning up at market rate portion of the site. Real America may come to the Commission later for a revision on the timeline to the purchase agreement and things are moving as planned. 7. Next Commission Meeting Thursday, October 10, 2024, 9:30 a.m., BPW Conference Room 13th Floor https://tinyurl.com/RDC-Meeting-10102024 8. Adjournment CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September,26, 2024 7 Thursday, September 26, 2024, 10:13 a.m. ______________________________ ______________________________ Vivan G. Sallie, Secretary Troy Warner, President