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HomeMy WebLinkAboutRedevelopment Commission Minutes 11.14.24 CITY OF SOUTH BEND REDEVELOPMENT COMMISSION SOUTH BEND REDEVELOPMENT COMMISSION MINUTES November 14, 2024, at 9:30 a.m. BPW Conference Room, 13th Floor, County-City Building https://tinyurl.com/RDC-Meeting-2T 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 Members Absent: Eli Wax, Commissioner Leslie Wesley, Commissioner Legal Staff: Sandra Kennedy, Corporation Council - Virtual Danielle Campbell Weiss, Asst. City Attorney 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 Joseph Molnar, Asst. Dir. of Growth and Opp., DCI Erin Michaels, Property Development Manager, DCI Laura Hensley, Board Secretary, DCI Others Present: Regina Emberton, 615 W. Colfax Ave. Jonathan Boulos, 1304 Leeper Ave. Matt Barrett, 110 S. Niles Ave. David Michael, Stoic Distillery Rex Weaver, Stoic Distillery Tina Patton, Cross Community CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – November 14, 2024 2 Tiernan Kane, 1024 Leeper Ave. 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, October 24, 2024 Upon a motion by Vivian Sallie for approval, second by David Relos, the motion carried unanimously; the Commission approved the minutes of the regular meeting of October 24, 2024. 3. Approval of Claims A. Claims Allowances 10.29.2024 Upon a motion by David Relos for approval second by Vivian Sallie, the motion carried unanimously; the Commission approved the claims allowances of October 24, 2024. 4. Old Business A. None 5. New Business A. Redevelopment Fund (a.k.a Pokagon Fund) 1. Fourth Amendment to Agreement (Redevelopment Supervisory Services) Caleb Bauer, Executive Director of Community Investment, clarified that both items 5A1 & 5A2 will come from the General Fund. He stated that the 4th amendment to the agreement for redevelopment supervisory services updates the fees for service which the Commission pays back into the city general fund for city staff. A portion of the salaries for the Executive Director, the Director of Growth and Opportunity, the Assistant Director of Growth and Opportunity, and the Property Development Manager whose responsibilities handle most of the workload would be included. Commissioner Relos asked that it pays 1/4 of the maximum budgeted salary. Mr. Bauer explained that the adjustment is linked to the salary cap for those positions, ensuring that the amounts only increase annually with the cost of living. This avoids the need for constant adjustments beyond a percentage increase. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – November 14, 2024 3 Upon a motion by Vivian Sallie for approval, second by David Relos, the motion carried unanimously; the Commission approved the Four Amendment to Agreement as presented on November 14, 2024. 2. Sixth Amendment to Agreement (Engineering Services) Upon a motion by Vivian Sallie for approval, second by David Relos, the motion carried unanimously; the Commission approved the Sixth Amendment to Agreement as presented on November 14, 2024. B. River West Development Area 1. Resolution No. 3616 (Establishing Minimum Bid 214 W. Wayne St.) Erin Michaels, Property Development Manager, presented items 5B1, 5B2 and 5B3 together. Ms. Michaels stated that the minimum bid is $226,000 (an average of two appraisals), bids will be due December 12, 2024, at 9 a.m. The property was purchased by the RDC in November of 2023 with the intent of potential redevelopment. It’s currently a parking lot for city employees and when the city moves in 2025, city employees will be parking in the adjacent parking garage. She explained that we would place an emphasis for approval on compatibility with surrounding businesses as well as the surrounding neighborhood and the River West Development Plan and the parcel is currently zoned DT Downtown. President Troy Warner asked how the timing will work with the move. Ms. Michaels explained that we will have a clause in the purchase agreement that staff can use until our move. Commissioner Relos asked if someone wanted to purchase the property to keep it a parking lot. Ms. Michaels stated that the preference would be for redevelopment, but we would be open to keeping it a parking lot as well. Upon a motion by Vivian Sallie for approval, second by Troy Warner, the motion carried unanimously; the Commission approved Resolution No. 3616 as presented on November 14, 2024. 2. Approve Bid Specifications (214 W. Wayne St.) Upon a motion by David Relos for approval, seconded by Troy Warner, the motion carried unanimously; the Commission approved the Bid Specifications as presented on November 14, 2024. 3. Notice of Intended Disposition (214 W. Wayne St.) CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – November 14, 2024 4 Upon a motion by Vivian Sallie for approval, second by David Relos, the motion carried unanimously; the Commission approved the Notice of Intended Disposition as presented on November 14, 2024. 4. Development Agreement (321 W. Wayne St.) Joseph Molnar, Asst. Director of Growth and Opportunity, presented a development agreement for the renovation of a blighted former industrial building with the purpose of instituting a new brewery with family entertainment options, as well as some of the building being renovated for professional offices. The developer commits $1.5 million in private investment improvements to the building, and the agreement commits the Redevelopment Commission to $70,000 local public improvements to be completed by December 31, 2027. Mr. Molnar showed renderings of the design of the building and explained it will have family-friendly space included. Indiana Historic Landmarks have stated that they would also go into that space. Regina Emberton, with Historic Hearthstone, owns the 17,000 square foot facility and would be leasing to Ivy Alley Brewhouse. She stated that she has engaged Keel Architecture to help with renovations and hopes to keep the historic nature of the building. Ms. Emberton explained that they have leased at no cost the 4500 square foot basement level to South Bend Trade Works, which deals with vintage restoration of construction materials. President Warner asked about the timeline for the project. Ms. Emberton stated that the goal would be to be open by the start of the baseball season next year. Jonathan Boulos spoke in favor of the project. Upon a motion by Troy Warner for approval, second by Vivian Sallie, the motion carried unanimously; the Commission approved the Development Agreement as presented on November 14, 2024. 5. Purchase Agreement (Stoic Beverages) Joseph Molnar, Asst. Director of Growth and Opportunity, presented a purchase agreement for a property the city re-acquired in early 2024 from Bear Hands Brewery, which the city had sold the property a number of years earlier to Bear Hands and re-acquired after they did not meet the minimum investment and the terms of their purchase agreement. A competitive request for proposals was issued and Stoic Distilling Co. demonstrated firm financing and experience for the site. The purchase price is $20,000 for a full-service distillery with $300,000 in private investment to begin construction in 12 months and to finish in 36 months. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – November 14, 2024 5 David Michael and Rex Weaver with Stoic Distillery explained that they will be committed to the community with hosting fundraising events and partnering with local vendors to provide Stoic with everything to produce their products. Mr. Weaver stated that he has over 10 years of experience in distilling and Mr. Michael has contractor and mechanical engineering experience to help with the renovations. Commissioner Relos asked if they’d purchased the distilling equipment and Mr. Michael stated that it's already in the building. President Warner asked about kitchen services. Mr. Michael stated that they have restaurant experience and there will be a commercial kitchen and will serve a limited menu of grilled cheese sandwiches as well as salads and soups. He stated that it will be a family-friendly environment with games and music. Commissioner Sallie asked about how many jobs they anticipate creating. Mr. Michael stated 25-30 people at full capacity. Tiernan Kane, project lead for Unity LLC, shared his opposition to the proposal choice. He shared his vision for the site and asked the Commissioners to not make their decision today. Caleb Bauer, Executive Director of Community Investment, stated that this doesn't necessarily preclude agreements between private property owners. Therefore, if Stoic Distilling Co. chose to become part of a larger development in the future, a purchase agreement between the private entities could occur without involving the Commission, though it might still need the Commission's approval for the development agreement. Mr. Bauer did not see a reason to delay a viable project without clear evidence of financing for a compelling vision. Tina Patton, Jonathan Boulos, Gabriella Girgis, Matt Barrett, Kim Kennedy, Monica McDaniels, and Zach Coddington were against making the decision today. David Michael, Rex Weaver, Regina Emberton, and staff asked the Commission to approve the purchase agreement. Upon a motion by Troy Warner to table the decision until the next meeting, second by Vivian Sallie, the motion was opposed by David Relos; the Commission will table the Purchase Agreement as presented on November 14, 2024. 6. Resolution No. 3619 (Authorizing Staff Sherrif Sale Bid) Joseph Molnar, Asst. Director of Growth and Opportunity, presented the Sheriff's Office holding periodic auctions for properties, both land and buildings as well as other items and some of those properties are on the River West acquisition list. The Resolution authorizes certain staff to bid at auction and may only do so with the express approval of the Executive Director. After the auction, staff must report back to the Redevelopment Commission regarding any bids made on their behalf CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – November 14, 2024 6 at the next meeting. The Resolution will be valid through June 30, 2025. Commissioner Relos asked if there is an $850,000 limit and 10% down and Mr. Molnar stated that there have to be fund transfers that day and the city controller is also involved, appraisals and prices also need to be researched ahead of time. Tina Patton asked if the city wins the bid, what happens next. Mr. Molnar explained it would be the same as any other purchase and if the city wished to redevelop, it would go through an open bidding process and the RDC would approve. Upon a motion by David Relos for approval, second by Vivian Sallie, the motion carried unanimously; the Commission approved Resolution No. 3619 as presented on November 14, 2024. C. River East Development Area 1. Second Amendment to Purchase Agreement (Former Firehouse #9) Joseph Molnar, Asst. Director of Growth and Opportunity, presented the second amendment to the purchase agreement to add 12 months to the due date for the former Firehouse #9. Mr. Molnar did note that this purchase agreement was for two parcels, however, there's one tiny sliver at the bottom and it has a tax bill of $30.00 due. He asks that if approved, it would be subject to those taxes being paid. Commissioner Relos asked what the City is planning for the property and Mr. Molnar stated it will be renovated for professional office use. Upon a motion by Vivian Sallie for approval, second by David Relos, the motion carried unanimously; the Commission approved the Second Amendment to the Purchase Agreement subject to the taxes being paid on November 14, 2024. D. Administrative 1. Resolution No. 3617 (Authorizing DCI Staff for Administrative Acts) Caleb Bauer, Executive Director of Community Investment, asked that items D1 and D2 be heard together. He stated that both of these Resolutions the Commission has seen annually authorizing staff to conduct acts on behalf of the Redevelopment Commission. Resolution No. 3617 establishes which City staff may be authorized to perform administrative acts related to the RDC’s owning, managing, leasing and selling property. Resolution No. 3618 establishes which City staff may be authorized to initiate contracts for services related to property ownership and also sets a maximum amount for each respective service. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – November 14, 2024 7 Upon a motion by David Relos for approval, second by Vivian Sallie, the motion carried unanimously; the Commission approved Resolution No. 3617 as presented on November 14, 2024. 2. Resolution No. 3618 (Staff Authority for Property Contracts Related Services) Upon a motion by Vivian Sallie for approval, second by David Relos, the motion carried unanimously; the Commission approved Resolution No. 3618 as presented on November 14, 2024. 3. Resolution No. 3620 (Adopting 2025 Annual Spending Plan) Caleb Bauer, Executive Director of Community Investment, presented a Resolution adopting the 2025 Annual Spending Plan. He explains that Indiana’s Code 36-7-14-12.7(a) has changed which now requires the submission of a yearly spending plan. The spending plan is uploaded onto the Indiana Gateway and available publicly and will likely be amended throughout the year as adjustments are made. Mr. Bauer explained that it is our best estimate for spending for the coming year. Mr. Bauer states that the resolution approves the plan, direct staff to file it, and provides staff the authority to amend the plan to reflect appropriations made by the Commission throughout the year 2025. The methodology for the plan is using our estimated 2025 tax increment financing revenues based on our 2024 revenues and some trending development areas and includes the redevelopment general fund. Mr. Bauer explained the graph displaying the combined increments collected across all development areas over the past few years. He noted a dip after 2020, followed by significant growth, which is expected to continue into 2025. He also reviewed the end-of-year fund balances graph, highlighting the healthy reserves maintained in each development area. The intent is not to hoard large reserves but to reinvest tax refinancing dollars back into the district. Any remaining funds are reserved for debt service obligations. Detailing the last chart of the annual spending plan, Mr. Bauer stated that DCI has projected expenditures into broad categories per Indiana Code guidance. The largest category is capital expenditures, including real property improvements and acquisitions, followed by debt service obligations as the second-largest category of appropriations and will fall off in the River East development area and at least one bond issuance in the River West Development area in the next couple of years, and that number is expected to shrink. Also, capital CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – November 14, 2024 8 expenditures, infrastructure and improvements, the redevelopment general fund, professional expenses and other smaller categories. Commissioner Relos asked if the projections were internal estimates and Mr. Bauer stated that they were a 3% escalator on our current 2024 June distribution and then using the past five years distribution ratio compared from June to December to extrapolate that out. Matt Barrett asked how much money is available in each of the districts. Caleb Bauer explained if you subtract the debt service obligations from that pie chart, the rest of those funds when they are received in June and December of 2025 are available. Also, not knowing what the Commission is going to actually appropriate in any given year, we are obliged to prepare this report, we are obliged to categorize it in high level categories, and we've done that and we're requesting the Commission's permission to amend the plan throughout the year. Upon a motion by Vivian Sallie for approval, second by David Relos, the motion carried unanimously; the Commission approved Resolution No. 3620 as presented on November 14, 2024. 4. Resolution No. 3610 (Commendation for Marcia Jones) President Troy Warner thanked Marcia for her 40 plus years of services on different types of economic and development Commissions for the City of South Bend. The current Commission is very grateful for her service. Commissioner Relos expressed that she was fun and a great baker. Commissioner Sallie was delighted to work with her on the Studebaker Commission. Upon a motion by Vivian Sallie for approval, second by David Relos, the motion carried unanimously; the Commission approved Resolution No. 3610 as presented on November 14, 2024. 6. Progress Reports A. Tax Abatement Erik Glavich, Director of Growth and Opportunity, stated that on October 28, 2024, the Common Council approved confirming resolutions for two real property tax abatements. The property at 321 W. Wayne Street received a 10-year abatement, and the DoubleTree hotel received a 9- year abatement. B. Common Council CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – November 14, 2024 9 C. Other 7. Next Commission Meeting Monday, November 25, 2024 due to the Thanksgiving Holiday week, at 9:30 a.m. 8. Adjournment Thursday, November 14, 2024, 10:56 a.m. ______________________________ ______________________________ Vivan G. Sallie, Secretary Troy Warner, President