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HomeMy WebLinkAbout2A Redevelopment Commission Minutes 10.10.24 CITY OF SOUTH BEND REDEVELOPMENT COMMISSION SOUTH BEND REDEVELOPMENT COMMISSION MINUTES October 10, 2024, at 9:30 a.m. BPW Conference Room, 13th Floor, County-City Building https://tinyurl.com/RDC-Meeting-10102024 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 Members Virtually: 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 - Virtual Erik Glavich, Director of Growth and Opportunity, DCI Rosa Tomas, Director of Finance, DCI - Virtual Joseph Molnar, Asst. Dir. of Growth and Opp., DCI Erin Michaels, Property Dev. Manager, DCI - Virtual Tim Corcoran, Chief Planner, DCI Michael Divita, Principal Planner, DCI Chris Dressel, Senior Planner, DCI Elizabeth Mayorga, Business Resource Specialist, DCI Laura Hensley, Board Secretary, DCI Others Present: Rebecca Czarnecki, 805 Arch Ave. Dale Scott, 120 W. LaSalle St. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – October 10, 2024 2 Benjamin Capdevielle, 511 Marquette Ave. Thomas Nowak, 1709 E. Wagner St. Margaret Pheil, 533 S. St. Joseph Marlene Nowak, 1709 E. Wayne St. Andre’ Stoner, 628 Cushing Cam Stillson, 610 California Ave. Brady Soemen, 11715 Aster Way Rebekah Go, 921 Cottage Grove Catherine Osborne, 738 Leland Ave. Lauren Smyth, 117 N. Lafayette Blvd. John Fyrqvist, 19450 Orchard Heights Ed Bradley, 17815 Woodthrush Ln. Dr. Sheila McCarthy, 3233 Lincolnway West Edward Jurkovic, 824 South Bend, Ave. Casy Mullaney, 518 South St. Jennifer Huddleston, Neighborhood Grants Mngr., DCI Alyssa Alstott, Neighborhood Grants Mngr., DCI Carl Hetler, Homeless Coordinator Dr. Daniel Armounfelder, 937 S. 25th. St. Matt Barrett, 110 S. Niles Ave. Mark Peterson, WNDU-TV Joe Thomas, 4th. Floor Co., City Bldg. B. Crumlish, 3215 Sugar Maple Matt Hubbard, PO Box 8984 Rose Capdevielle, 511 Maragret Ave. Elizabeth Capdevielle, 511 Maragret Ave. Tiernan Kane, 1024 Leeper Ave. 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, September 26, 2024 Upon a motion by Eli Wax for approval, second by Vivian Sallie, the motion carried unanimously; the Commission approved the minutes of the regular meeting of September 26, 2024. 3. Approval of Claims A. Claims Allowances 9.24.2024 Upon a motion by David Relos for approval second by Vivian Sallie, the motion carried unanimously; the Commission approved the claims allowances of October 10, 2024. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – October 10, 2024 3 4. Old Business A. None 5. New Business A. Redevelopment Fund (a.k.a Pokagon Fund) 1. Property Acquisition (Old Cleveland Road) Caleb Bauer, Executive Director of Community Investment, presented property acquisition at 4022 Old Cleveland Rd., a 15-acre site with a purchase price of $825,000 currently zoned I (Industrial). The proposed use will be a low-barrier intake center. This site will replace the temporary solution at Motels4Now. Mr. Bauer explained that this is the first action taken in the long process for developing the site. If approved, Community Investment would bring the Bendix site through the disposition process at the next Redevelopment Commission meeting. The Old Cleveland Road site would then require rezoning from I (industrial) to urban flex, and the New Day Intake Center would begin its capital campaign. Staff would then return to the Commission for consideration of a purchase agreement. Commissioner Eli Wax asked about transportation and resources available for individuals at the intake center. Mr. Bauer stated that there is a limited transport service with Motels4Now and some Transpo bus routes to the location. The city is also in conversation with Transpo regarding offering more frequent service to the location. There were various residents that spoke both for and against this acquisition. Dr. Daniel Armounfelder, Rebekah Go, Andre’ Stoner and Dr. Sheila McCarthy spoke in favor and St. Joseph County Councilman Joe Thomas spoke regarding concerns from his constituents but stated he thought this site was better than Bendix Dr. Commissioner Eli Wax asked if this would impact the surrounding areas. Mr. Caleb Bauer stated that plans for the site would not have a negative impact with fencing and security. He explained that New Day will also be in communication with neighbors to explain plans and if issues arise as well as camera systems. Commissioner Wax asked if this would be in coordination with the police department. Dr. Sheila McCarthy, Executive Director of the New Day Intake Center responded, they have been in contact with neighboring businesses and the police department and the city’s camera system is in place at their current location. Mr. Bauer also confirmed the new site will be linked to the real-time crime center with SBPD. Commissioner Eli Wax asked about concerns with foot traffic and transportation for New Day clients. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – October 10, 2024 4 Mr. Bauer explained that there will be notices mailed to all adjacent property owners when the property is rezoned, and we could consider expanding the 300 feet radius. Dr. McCarthy also stated that there is a bus service on Old Cleveland Road six (6) times per day from 7 a.m. to 5 p.m. as well as New Day staff that run five (5) times per day to take people to medical, legal, mail and medication appointments. Commissioner Vivian Sallie asked what the fundraising goal is and where New Day is currently. Dr. McCarthy stated the goal is $18.8 million in a total of three (3) phases. New Day is at $12.5 million 75% of phase I, 20% of phase II. Commissioner David Relos asked about the services provided. Dr. McCarthy explained that there will be housing, laundry services, kitchen, medical and psychological services all within the facility, and grocery and drug stores within 1.7 miles. Commissioner Eli Wax expressed concerns however, stated that this is a better site as far as the neighborhood impact. Mr. Wax also hopes Zoning looks carefully for the best facility to serve the guests as well as the surrounding neighborhood. Mr. Wax does have reservations and would need those addressed prior to moving forward with a development agreement. Commissioner Vivian Sallie asked for New Day to update the Redevelopment Commission on a regular basis with their fundraising accomplishments and goals. Mr. Caleb Bauer stated that staff can also assist in those updates. Upon a motion by Vivian Sallie for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the acquisition as presented on October 10, 2024. B. River West Development Area 1. RFP Submission Recommendations (410 W. Wayne St.) Joseph Molnar, Assistant Director of Growth and Opportunity, presented the staff recommendation for 410 W. Wayne (former Gates service building) for the proposal which includes the building and South parking lot. Staff recommend the Commission move forward with Stoic Beverage, LLC a local distillery. The proposed use would include a tasting room, outdoor seating and recreation area and commercial kitchen for a sale price of $20,000 and total investment of $300,000. Mr. Molnar shared a rendering of the proposed building and shared staff felt this is a good fit due to Stoic’s experience, financial responsibility, design of the building and consistency with city plans as well as meeting all submission requirements. Mr. Molnar asked the CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – October 10, 2024 5 Commission for approval for staff to enter into direct negotiations with Stoic and draft a purchase agreement. The large parking lot will not be part of this transaction and would also be available for redevelopment with another developer in the future. Commissioner Eli Wax asked about the other submissions and Mr. Molnar stated that the two top submissions met all of the requirements. He explained that Unity’s proposal was residential development that would encompass both this property and the parking lots as well as another property not included in the proposal. Caleb Bauer, Executive Director of Community Investment, noted that approval from the Commission would not create a formal obligation from the Commission, and should the Commissioner’s authorization, we would then enter into more detailed negotiations for a purchase agreement. Commissioner David Relos expressed concerns about the earlier issues with the site plans, parking requirements and drive lanes for the location when prior development had been considered. Mr. Molnar explained that that is no longer an issue and staff would work with Zoning. Commissioner Wax asked about specific plans regarding future parking needs and Mr. Bauer stated that there are ongoing downtown plans that involve analysis from Walker Parking projecting out as we see new residential units coming online, and potentially new restaurant retail businesses, for the next 20 years. He explained that 50% of parking spaces are used during peak hours now. Mr. Wax asked about the closest parking garage and Mr. Molar noted that it would be addressed with the next agenda item. Tiernan Kane, the Unity representative, commented that they would like to create a unified community space and if the distillery was on the corner against the Ivy, that would be a more natural fit to advance investors in developing the property and possibly move the distillery to a permanent location. He hopes the Commission can take this suggestion into consideration. Upon a motion by Eli Wax for approval, seconded by Vivian Sallie, the motion carried unanimously; the Commission approved the staff recommendation as presented on October 10, 2024. 2. Budget Request (Parking Garage Equipment) Joseph Molnar, Assistant Director of Growth and Opportunity, presented a budget request for $120,000 to convert the parking garage at the intersection of Main St. and Wayne St. from a private to a public CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – October 10, 2024 6 parking facility. The request is for new sensors, new equipment, new gates and to partner with LAZ to procure the equipment. The hope is to open by the end of 2024. Commissioner Vivian Sallie asked if the city currently owns the garage, and this is solely for the equipment to convert from private to public. Caleb Bauer stated that VPA has a contract with LAZ parking to operate and it would function just like the other parking garages in the city as well as the monthly parkers that want to reserve spaces there and would like to activate the retail space across from the St. Joseph Co. Library. Commissioner Wax asked about the prior public safety hazards with the decorative fins. Mr. Bauer explained that structural engineers have assessed that they have been stabilized with the bracketing. Commissioner Wax also suggested having marketing explaining all of the options as well as cost and hours available with free parking. Mr. Bauer agreed and will plan to have unified signage going forward. Commissioner Relos asked about parking rates and Mr. Bauer stated Robertson’s residence has gone down, however, rates have not increased in many years and that may change soon. Upon a motion by David Relos for approval, seconded by Vivian Sallie, the motion carried unanimously; the Commission approved the budget request as presented on October 10, 2024. 3. Budget Request (749 Harrison Demolition) Elizabeth Maradik, Chief Neighborhoods Officer, stated the city opened the substandard property case against this property in December of 2019. Since that time, no action has been taken to make needed repairs at the property. Staff more recently have been monitoring the deteriorating conditions, and there was a demolition order affirmed against the property, and Neighborhoods recently had a structural engineer review the property and found that a portion of it is potentially in danger of imminent collapse, in particular, with inclement weather. She stated that staff have moved forward with receiving quotes to complete an emergency demolition at the property to resolve the public safety risk prior to winter weather, which could further deteriorate the building and cause further risk and harm. Neighborhoods would like to move forward with the demolition. The request is for the appropriation of $500,000 to help cover the cost of demolition. Caleb Bauer, Executive Director of Community Investment, also stated that he expects the quotes to come in below $500,000, however, due to the urgency of the situation, they are requesting extra, and any remainder would be returned back to the River West Development fund. Commissioner Eli Wax asked who owns the building and Ms. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – October 10, 2024 7 Maradik advised that New Birth Christian. Mr. Bauer stated that they operate out of the annex portion of the building. The sanctuary would be the only demolition, and one wall would be affected. Commissioner Relos asked about the time period and Ms. Maradik stated that Neighborhoods would like to bring the quotes to the Board of Public Works meeting soon for a quote award. Kathy Schuth, President of Near Northwest Neighborhood Association, stated that Near Northwest Neighborhoods have been in conversations with the church regarding the obvious deteriorating condition of the building and have not been able to help with funding. She is saddened by the result of the church not being able to make the necessary repairs. Ms. Schuth also stated that most of the mechanicals are located in the basement of the sanctuary and are concerned about using the remainder of the building. Sue Kesim stated that they have a GoFundMe account set-up for $100,000 to raise funds. Ms. Kesim asked if prior to demolition, the stain glass windows could be preserved. Commissioner Eli Wax asked if this is being done in the cheapest way possible and Mr. Bauer stated that the intent is to resolve the public safety issue with expediency and to make best efforts to preserve access to the annex building going forward. Upon a motion by Eli Wax for approval, seconded by Troy Warner, the motion carried unanimously; the Commission approved the budget request as presented on October 10, 2024. 4. Resolution No. 3606 (Amending TIF District) Tim Corcoran, Chief Planner, presented the TIF district adjustment process for all three (3) Resolutions. October 10th will be the declaratory resolution approval, November 18th: the South Bend Plan Commission declaratory resolution approval, November 25th:Common Council declaratory resolution approval, November 26th: Public Hearing published, December 10-11th: Public information meetings in two sessions and December 12th: the Redevelopment Commission confirming the Resolutions. Mr. Corcoran explained that the TIF boundaries are being adjusted so that the increment in some of these areas can be achieved to support redevelopment needs and planning initiatives in these new areas as they get developed. He showed a map with the expansion areas for all three (3) districts. Commissioner David Relos asked about including one property excluded from the River East District, the AEP property in the River West area. Commissioner Wax asked about adding a couple parcels CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – October 10, 2024 8 near Panera on Miami that were rezoned for an automotive business. Mr. Corcoran agreed. Mr. Corcoran also reviewed the commonly asked questions. Commissioner Eli Wax asked if the Commission is locked into the properties listed on the map or can it be approved subject to the allocation areas suggestions by Commissioner Relos. Mr. Corcoran stated that the city is in the process of developing the legal descriptions and that can be amended. Danielle Campbell Weiss, Assistant City Attorney, stated that there may possibly need to be a sub at the next meeting, and she will let the Commission know. Matt Barrett asked what the downside is of making the entire city a TIF district. Caleb Bauer explained that TIF districts can impact other taxing entities. The base rate that's set in the establishment or the expansion of a district continues to go to the different taxing entities, but increment captured above that will be controlled by the Redevelopment Commission. Mr. Bauer stated that there have been a number of studies that show the investments of redevelopment commissions, and the assessed value tied to those investments more than offset the negative impact to other taxing entities through the growth of assessed value. However, the primary reason why the city would not do this is that to expand the districts to cover every parcel in the city in a commercial district, we're only able to capture increments from non-residential properties, and it doesn't always make sense to the Commission to expand to cover an entire neighborhood with the chance of alarming residents. Upon a motion by Eli Wax for approval, subject to the additions to the allocation areas suggested at the meeting, seconded by Troy Warner, the motion carried unanimously; the Commission approved the Resolution as presented on October 10, 2024. C. River East Development Area 1. Resolution No. 3607 (Amending TIF District) Upon a motion by Eli Wax for approval. subject to the additions to the allocation areas suggested at the meeting, seconded by David Relos, the motion carried unanimously; the Commission approved the Resolution as presented on October 10, 2024. D. South Side Development Area 1. Resolution No. 3608 (Amending TIF District) CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – October 10, 2024 9 Upon a motion by Eli Wax for approval, subject to the additions to the allocation areas suggested at the meeting, seconded by Vivian Sallie, the motion carried unanimously; the Commission approved the Resolution as presented on October 10, 2024. A.Tax Abatement Erik Glavich, Director of Growth and Opportunity, presented that on September 23rd, at the Common Council meeting, the Council adopted a declaratory resolution for Property Bros. LLC to build four (4) duplexes in the area of Sherman and Lincoln Way West. On June 13th, the RDC adopted and approved both a development agreement and a real estate purchase agreement for Property Bros, LLC. The tax abatement requirements are aligned with those two agreements. He stated that at the next Common Council meeting on October 14th, we will present to the Council the confirming resolution for that tax abatement. In addition, we will be presenting two (2) declaratory resolutions for tax abatement at that meeting. One at a building at 321 W. Wayne St. and a $10 million renovation of the DoubleTree Hotel on Dr. Martin Luther King Jr. Blvd. B.Common Council President Troy Warner stated that the Council is close to passing the 2025 budget. C.Other None 6.Next Commission Meeting Thursday, October, 24, 9:30 a.m. 7.Adjournment Thursday, October 10, 2024, 11:19 a.m. ______________________________ ______________________________ Vivan G. Sallie, Secretary Troy Warner, President