Loading...
HomeMy WebLinkAbout3A Redevelopment Commission Minutes 12.12.24 - Signed CITY OF SOUTH BEND REDEVELOPMENT COMMISSION SOUTH BEND REDEVELOPMENT COMMISSION MINUTES December 12, 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 9:31 a.m. Vice President David Relos presiding. 1. ROLL CALL Members Present: David Relos, Vice President Vivian Sallie, Secretary Eli Wax, Commissioner Gillian Shaw, Commissioner Members Virtually: Leslie Wesley, Commissioner Members Absent: Troy Warner, President Legal Staff: Danielle Campbell Weiss, Asst. City Attorney Redevelopment Staff: Sarah Schaefer, Deputy Director, DCI 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 Tim Corcoran, Chief Planner, DCI Chris Dressel, Senior Planner, DCI Laura Hensley, Board Secretary, DCI Others Present: Denise Riedl, Chief Innovation Officer Patrick Sherman, Project Manager Leslie Biek, Assistant City Engineer Madi Rogers, Director of Civic Innovation CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – December 12, 2024 2 Lynn Wetzel, Program Manager of Transportation Philip Darrow, 310 W. Ewing Ave. Andy Place, 620 Ironwood Dr. Randal Jennings, 16145 S. Twyckenham Dr. Thomas Clemans, 1305 Campeau St. Amanda Shutts, 701 Portage Ave. Greg Swiercz, SB Tribune Tom Lindemann, 18488 Kern Rd. Molly Johnson, 2500 Green Tech Dr. Justin Young, 2500 Green Tech Dr. Matt Barrett, 110 S. Niles Ave. Tina Patton, Cross Community Randy Jennings, 1614 S. Twyckenham Dr. Jorge Juarez, 220 W. Eckman St. 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, November 25, 2025 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 November 25, 2025. 3. Approval of Claims A. Claims Allowances 11.26.2024 & 12.03.2024 Commission Eli Wax asked about the digital storefront item. Joseph Molnar, Assistant Director of Growth and Opportunity stated that it is a grant for small businesses assisting with website creation. Upon a motion by Eli Wax for approval, second by Vivian Sallie, the motion carried unanimously; the Commission approved the claims allowances of 11.26.24, and 12.03.24. 4. Old Business A. None 5. New Business A. Redevelopment General Fund 1. Budget Request (Commuters Trust Funding) CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – December 12, 2024 3 Madi Rogers, Director of Civic Innovation, gave a brief introduction to what Commuters Trust is and about the $200,000 budget request. $130,000 will cover transportation costs and $70,000 is for project management and business analytics support. Lynn Wetzel, Program Manager of Transportation, presented that services provided are, increased job security for wage workers, reduced turnover and no- shows for local employers, and broaden access to essential services for underserved communities for transportation. Ms. Wetzel explained that the problem is that it costs on average $525 to own a vehicle. Both on a local and national level, 1 in 4 individuals struggle to access reliable transportation. Ms. Wetzel explains that there are two examples of the program, 1 is non-profit program and 2 is a cost-share employer program and these programs have been running since 2020. She stated that enrollment takes 5 minutes and benefits can only be used for eligible rides. The employer partner program (to date) impacts 670 participants, 27,581 Uber/Lyft rides, 71,335 Transpo rides, and $15.11 average ride costs. She gave an example of employees that were able to increase their hours by 1.27 shifts per month and that resulted in an extra $151.00 a month per worker. Vice President Relos asked to clarify, the program pays 1/3 and the employers pays 2/3 and Ms. Rogers confirmed, the estimated partner commitments are $183,000, CT Transportation contribution is $130,000, Administrative expenses are $70,000 with a total budget of $383,000 with a City commitment of $200,000. Commissioner Wax asked to clarify, the program would share up to 67% of the total transportation costs and Ms. Rogers confirmed. Commissioner Wax also asked for economic impact and growth for 2025, and Ms. Rogers stated that they will be doing more studies. Commissioner Sallie asked if they had looked into other sources of funding, and Ms. Rogers stated that they have applied for grants but were denied and are waiting to hear back from another. Tina Patton asked if this is a program for the entire City of South Bend and Ms. Wetzel stated that the program only partners with employers and non-profits and there is a website for details. Upon a motion by Vivian Sallie for approval, seconded by Eli Wax, the motion carried however, Commission Gillian Shaw abstained from the vote; the Commission approved the Budget Request as presented on December 12, 2024. B. River West Development Area 1. Opening of Bids (214 W. Wayne St.) CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – December 12, 2024 4 Erin Michaels, Property Development Manager, stated that no bids were received, and the staff can now negotiate with interested parties. 2. Budget Request (Studebaker Museum HVAC Project) Patrick Sherman, Project Manager, presented a budget request for $15,000 for two (2) failing HVAC units and a very large commercial unit to finish the project this Spring. Vice President Relos also noted that the Commission owns the building. Upon a motion by Gillian Shaw for approval, seconded by Eli Wax, the motion carried unanimously; the Commission approved the Budget Request as presented on December 12, 2024. 3. Budget Request (Riverfront West Survey) Leslie Biek, Assistant City Engineer, presented a budget request for $150,000 to increase the road network, confirm utilities, and confirm the land. Ms. Biek displayed a map detailing the location. Commissioner Wax asked about the cost and Sarah Schaefer, Deputy Director of DCI explained that we cut out some of the request (LIDAR imaging) to get to this amount and hope to have the survey completed by January. Upon a motion by Eli Wax for approval, seconded by Vivian Sallie, the motion carried unanimously; the Commission approved the Budget Request as presented on December 12, 2024. 4. Second Amendment to Purchase Agreement (Advantix) Joseph Molnar, Assistant Director of Growth and Opportunity, presented the amendment specifically for land located at the intersection of Lincolnway West and Marian St. for eight (8) parcels to build 50 total units of affordable housing with 10 on these parcels and the rest on parcels from the Board of Public Works with a closing date of December 31, 2024. The amendment is to extend the closing date to June 30, 2025 to allow for more time to market LIHTC credits with the groundbreaking scheduled for the Summer of 2025. Commissioner Wax asked about the value of pushing the date out and Mr. Molnar explained that the interest rates change and by waiting the credits will be worth more. Matt Barrett asked about tax implications and Mr. Molnar stated that Advantix has two (2) active buyers and are waiting for interest rates to go up, however, the implication of property tax will not take effect until the houses are built. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – December 12, 2024 5 Upon a motion by Eli Wax for approval, seconded by Vivian Sallie, the motion carried unanimously; the Commission approved the Second Amendment to the Purchase Agreement as presented on December 12, 2024. 5. Certificate of Completion (Cultivate Food Rescue) Joseph Molnar, Assistant Director of Growth and Opportunity, presented the certificate of completion for the facility and all obligations were met including, the construction being completed within 26 months of closing, well within the deadline of 60 months. They intend to spend a minimum of $3,000,000 on improvements and they've confirmed with documentation a total of $6.2 million of total improvements on the site with twenty-two (22) full-time employees. Jim Conklin, Cultivate Food Rescue, concurred that the project went as planned. He stated that two years ago, they rescued 1 million pounds of food and served 700 kids. However, with the opening of this facility, they’re on track to serve 10 million pounds of food and serve 1500 students in three counties in the community. Mr. Conklin also stated that they are making $1.8 million in improvements to the 1403 Prairie property as well, and a considerable investment in this part of town as well as thirty-two people employed. He thanked the Commission for their help. Commissioner Wax asked if that was 10 million pounds this year and Mr. Conklin stated that with the new facility opening, they are able to fill in short term and long term shows potentially 20 million pounds of perishable food per year. Commissioner Wax asked about how many meals per week and Mr. Conklin stated 13,000 meals with 7,500 frozen meals going home each weekend in the backpack program. Commissioner Wesley thanked Cultivate for their contribution to the community. Commissioner Wax also praised the efforts and how these fit in with the Commission. Upon a motion by Eli Wax for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved the Certificate of Completion as presented on December 12, 2024. 6. First Amendment to Lease Agreement (South Bend Bike Garage) Erin Michaels, Property Development Manager, present the amendment at 119 W. Wayne St. commons to increase to utilize the entire ground floor retail space, removes access to basement storage for 5,000 square feet. The small mechanical closet is not included. Commissioner Wax asked about how long the lease is for and Ms. Michaels stated 18 months. Commissioner Wax asked to leave options CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – December 12, 2024 6 open to other opportunities and Attorney Weiss stated that we have 30 days to terminate the agreement. Upon a motion by David Relos for approval, seconded by Eli Wax, the motion carried unanimously; the Commission approved the First Amendment to the Lease Agreement as presented on December 12, 2024. 7. Public Hearing (TIF Area Expansion) Chris Dressel, Senior Planner, presented all three (3) Public Hearings and Resolutions together and they were moved to proceed agenda item 5A1. Mr. Dressel presented the schedule that the process went through; October 24, RDC Declaratory Resolution approved, November 18, SB Plan Commission Declaratory Resolution approved, November 25, Common Council Declaratory Resolution approved, November 26, Notification letters sent to all property owners, November 29, a Public Hearings Notice Published, December 10-11, Public Informational meets held, and December 12 RDC confirming Resolutions with written remonstrance deadline. Mr. Dressel reviewed, what is a TIF, how a TIF works, as well as the infrastructure that have benefited by TIF improvements both public and private. Mr. Dressel explained why TIF districts are adjusted and also reviewed the proposed expansion areas including the River West, River East and South Side districts. He stated that, the City is not actively trying to acquire the property, however, it enables the City to have greater flexibility in the negotiation process later. Mr. Dressel stated that the TIF districts had an overhaul and development plan back in 2019 as well as a financial impact analysis conducted by Baker Tilly. Mr. Dressel explained the public engagement summary of 196 mailings and/or notifications with 81 website visits, 12 calls/emails, 4 meeting attendees, and no 1 in-person visits. Commissioner Eli Wax wanted to clarify that this doesn’t increase residents’ taxes, it captures an increase in taxes and is kept locally to improved neighborhoods with redevelopment project opportunities and doesn’t change any owners’ rights. Commissioner Wax also stated that the City is not planning on developing condos at Rum Village park, these dollars are for park improvements in the future. Mr. Dressel stated that potential property acquisition would always be based on a willing owner and not via eminent domain. Danielle Campbell Weiss, Assistant City Attorney, stated that the RDC does not have that power. Vice President Relos explained that expanding the boundaries now makes efforts later much easier so that we don’t have to go through all of the steps for one property. Ms. Weiss also stated that the name, CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – December 12, 2024 7 “acquisition list” comes from the statute. Commissioner Wax asked about the assessed value timeline and Vice President Relos stated it would be retroactive back to January 1, 2024, and is also not locked in forever because every year there's a TIF neutralization that looks if there's any natural appreciation in property values and that base assessed value gets adjusted going forward. Matt Eckerle from Baker Tilly noted the base assessed values for the existing components of the allocation areas being unaffected. The same goes for the expiration dates. Of those existing components of the allocation areas, this action does not affect those. It does not extend the expiration date. Andy Place asked the question, does TIF take tax monies away from the school system? Mr. Eckerle explained that to redirect the incremental revenues generated by the incremental development and the resulting assessed value that happens in that geography. If the TIF area was not in place and that development were to happen anyway. Because of the maximum levy limitations that the state imposes on all of the taxing units, including the schools, the growth and assessed value does not necessarily generate new property tax money that would go to the overlapping taxing units. What it really does is, it spreads that limited levy over a larger tax base and thus puts downward pressure on the property tax rates. So, one way to think about it is, if a new developer pays $100,000 in property taxes, that’s really $100,000 less than other taxpayers would have to pay into those same levies. New development does not beget new property tax revenue. Mr. Place asked if he could keep his property as is, Vice President Relos stated that it would depend on the vote and the vote would be for the entire request. 8. Resolution No. 3622 (Confirming TIF Expansion) Upon a motion by Eli Wax for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved Resolution No. 3622 as presented on December 12, 2024. C. River East Development Area 1. Public Hearing (TIF Area Expansion) Randy Jennings asked if there are projects proposed for this district? Chris Dressel stated that there is none, and this is just an opportunity to capture these properties within the redevelopment area at an early date. 2. Resolution No. 3623 (Confirming TIF Expansion) CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – December 12, 2024 8 Upon a motion by Vivian Sallie for approval, seconded by Eli Wax, the motion carried unanimously; the Commission approved Resolution No. 3623 as presented on December 12, 2024. D. South Side Development Area 1. Public Hearing (TIF Area Expansion) Tom Lindemann asked for clarification about if Lafayette Falls was included and Vice President Relos stated it is not in a TIF district and is not included in this expansion. Mr. Lindemann asked if a homeowner wanted to make improvements to their home, does the increased assessed property value add to the TIF and Vice President Relos explained that residential properties do not capture this increment and Attorney Weiss stated it will not change. Jorge Juarez asked if there are plans for the area on West Eckman St. and Mr. Dressel stated there are none. Philip Darrow stated that their concerns have been answered regarding future projects that will affect their property. 2. Resolution No. 3624 (Confirming TIF Expansion) Upon a motion by Eli Wax for approval, seconded by Vivian Sallie, the motion carried unanimously; the Commission approved Resolution No. 3624 as presented on December 12, 2024. E. Administrative 1. Resolution No. 3621 (2025 RDC Meeting Schedule) Danielle Campbell Weiss, Assistant City Attorney, stated that in the event we move to City Hall, we will update the location of the meetings. Upon a motion by Eli Wax for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved Resolution No. 3621 as presented on December 12, 2024. 6. Progress Reports A. Tax Abatement Joseph Molnar, Assistant Director of Growth and Opportunity, stated the South Bend Common Council at the last meeting approved a Resolution for Empower Her LLC, to renovate the former Home Ministry building on S. Michigan St. Mr. Molnar also stated, there is a closing tomorrow on the former Gates building, we closed yesterday on the Elwood Shopping CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – December 12, 2024 9 Plaza on Portage, and we closed last week on the 4022 Old Cleveland Rd. site. The next step for the Old Cleveland Rd. site is to be rezoned. B.Common Council None C.Other None 7.Next Commission Meeting Monday, December 23, 2024, 9:30 a.m. May be cancelled TBD 8.Adjournment Thursday, December 12, 2024, 11:22 a.m. ______________________________ _____________________________ David Relos, Vice President Troy Warner, President