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HomeMy WebLinkAbout2A Redevelopment Commission Minutes 01.23.25 - SignedCITY OF SOUTH BEND REDEVELOPMENT COMMISSION SOUTH BEND REDEVELOPMENT COMMISSION MINUTES January 23, 2025, at 9:30 a.m. Council Chambers 4th Floor or https://tinyurl.com/RDC-2025-4T The South Bend Redevelopment Commission was called to order at 9:32 a.m. President Troy Warner presiding. 1. ROLL CALL Members Present: Troy Warner, President David Relos, Vice President Vivian Sallie, Secretary Eli Wax, Commissioner Gillian Shaw, Commissioner Leslie Wesley, Member At -Large Legal Staff: Danielle Campbell Weiss, Asst. City Attorney Redevelopment Staff: Erik Glavich, Director of Growth and Opportunity, DCI Joseph Molnar, Asst. Dir. of Growth and Opp., DCI Erin Michaels, Property Development Manager, DCI Laura Hensley, Board Secretary, DCI Others Present: Greg Swiercz, South Bend Tribune Matt Barrett, 110 S. Niles Ave. Tina Patton, 707 Sherman Ave. Carlos Leyva, SBCSC Board Member Pastor David & Dr. LaRissa Buggs 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, January 9, 2025 CITY OF SOUTH BEND I REDEVELOPMENT COMMISSION REGULAR MEETING — January 23, 2025 Upon a motion by Vivian Sallie for approval, second by Eli Wax, the motion carried unanimously; the Commission approved the minutes of the regular meeting of January 9, 2025. 3. Approval of Claims A. Claims Allowances January 7, 2025 Upon a motion by David Relos, second by Vivian Sallie for approval, the motion carried unanimously; the Commission approved the claims allowances of January 7, 2025. 4. Old Business A. None 5. New Business A. River West Development Area 1. Option to Purchase Agreement (4124 Old Cleveland Rd.) Joseph Molnar, Assistant Director of Growth and Opportunity, presented this Option to Purchase Agreement for 4124 Old Cleveland Rd. and shared a map of the location next to the proposed property for the New Day Intake Center. The current owners have signed the agreement, subject to them finding a new home. An initial payment of $25,000 to the owners of the property for the right of that exclusive option that would last five years. The Commission could only move forward with the purchase of the building and exercise that option if building permits are pulled for the New Day Intake Center or a similar type of facility. After that, they would have six months to close and to vacate the building. The average of the two appraisals that were received for the property is $374,000 and that is part of the agreement. Mr. Molnar stated that the house on the property is in good condition, and it could be incorporated into the new development. Commissioner Wax asked if the New Day Intake Center has interest in the property. Mr. Molnar stated that it could be a part of the overall campus and wanted to make sure the option is approved ahead of time as well as the County may have interest in combining the parcels. Commissioner Wax asked how the $375,000 investment would benefit the project and Mr. Molnar stated that the homeowners didn't know about the Intake Center when they purchased the property, and this option would benefit the immediate neighborhood and there is value in the site for the City. Vice President Relos asked if this was the only neighboring property and Mr. Molnar explained that there is one more residential 2 CITY OF SOUTH BEND I REDEVELOPMENT COMMISSION REGULAR MEETING — January 23, 2025 property to the West, an industrial property to the East, and another possible residential/business to the East. Commissioner Wax asked about the County -owned property and if they could give us access/easement and Mr. Molnar stated that would be a good upcoming conversation. Commissioner Shaw asked if this sets a precedent of selling your property to the City if you're disappointed with what's happening in the nearby community. Mr. Molnar explained that this is a very unique situation where the RDC purchased property for a specific type of development and there may be challenges with the use but will ultimately be value added. Commissioner Wesley asked if others asked the City to purchase their property in fairness, would the City consider the request. Mr. Molnar explained that staff are willing to discuss any possible purchases, however, this is a unique situation, and it was on the acquisition list. Commissioner Wax explained he would oppose the purchase at this time. The motion was made by David Relos to approve the Option to Purchase Agreement, second by Vivian Sallie. On the motion: • Troy Warner, President: YEA • David Relos, Vice President: YEA • Vivian Sallie, Secretary: YEA • Eli Wax, Commissioner: NO • Gillian Shaw, Commissioner: YEA The motion carried; the Commission approved the Option to Purchase Agreement as presented on January 23, 2025 B. South Side Development Area 1. Development Agreement (The Nexus Center) Erik Glavich, Director of Growth and Opportunity, presented this Development Agreement at 3607 S. Main Street owned by Pastor David & Dr. LaRissa Buggs for $300,000 for the installation of a new elevator. The agreement is with both the Nexus Center LLC and Cultivating Life Clinic. RDC support would be $300,000 and private investment would be $745,000 with a completion date of December 31, 2026. Both development agreements combined would be RDC support of $825,000 with private investment commitment of $2,345,000. Pastor David Buggs thanked the Commission for all they have done. He explained that this facility impacted lives in a most positive way and 3 CITY OF SOUTH BEND I REDEVELOPMENT COMMISSION REGULAR MEETING - January 23, 2025 would like to complete the facility to best serve the community. Dr. LaRissa Buggs stated that there is a need for mental health care and as an African American clinician, she hopes to delivery that care with accessing all areas of the facility. She explained that the accessibility ramp from Phase I has been tremendous by making the rear of the building accessible to all where the clinic entrance is located. The request for the elevator would create access to the educational offerings or life skills training areas. Pastor Buggs stated that the newly renovated areas are beautiful however, not everyone can get to them to utilize their full potential. Commissioner Sallie stated that she had toured the facility and was impressed with what had been accomplished. She has also talked with Oaklawn Center, and they have expressed that it's been helpful to have an additional facility. Commissioner Wesley also spoke in favor of the development on the South Side of South Bend. Tina Patton expressed enthusiasm with the project and hopes that this facility will help the community overcome the stigma about mental health assistants. Councilman Canneth Lee also spoke in favor of the agreement and stated that this could be a great beacon of hope for our community. Commissioner Wax asked about the non-profit aspect verses the for - profit side of the business and how many people utilize the services with the increased changes before the Commission. Pastor David Buggs explained that there is an event space in the building, and they can charge for the use of the space. Mr. Buggs stated that there will also be a state-of-the-art commercial kitchen available for individuals to use soon and provide excellence for the community. Dr. Buggs explained that between St. Joseph and Elkhart counties there are approximately 115 people using their services and about 70 people she has regular contact with. She also explained that by having the elevator, they partner with Nurse Family Partnership and have a difficult time getting necessary supplies to the second floor. Dr. Buggs stated that the potential could be significant. Upon a motion by Vivian Sallie for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved the Development Agreement as presented on January 23, 2025. 6. Progress Reports A. Tax Abatement Erik Glavich, Director of Growth and Opportunity, presented that at the Common Council meeting coming up this Monday, DCI will be presenting n CITY OF SOUTH BEND I REDEVELOPMENT COMMISSION REGULAR MEETING — January 23, 2025 to Council a vacant building tax abatement for the Studebaker Administrative Building. The vacant building tax abatement would essentially provide two years of tax relief that can then be directed into the project of stabilizing and saving that building. Mr. Glavich explained that DCI will also present to the Common Council a real property tax abatement and a personal property tax abatement for a South Bend manufacturer called GTA Containers. He stated they are working through GLC, and they will be expanding their operations and investing approximately $11 million in expanding operations on the West Side near Linden Ave. and Sheridan Ave. Joseph Molnar, Assistant Director of Growth and Opportunity, presented an update on the Drewry's Brewery demolition site. Mr. Molnar shared photos of the site and the progress since 2022. There have been thousands of tons of rubble removed and after the EPA $1.7 million cleanup in December of 2023, all asbestos was removed (14,000 tons of debris). He showed before and after photos and today there is only the smokestack remaining so that it might be incorporated into the new plan. RDC staff will be presenting at the Common Council meeting this Monday the rezoning of the property with a mix of residential options. Commissioner Wax asked if the EPA has signed off for residential use. Mr. Molnar stated that yes, it has been approved for multifamily use, however, there is a restrictive covenant on single family homes that we're going through the process of getting that soil removed and that should happen this year. Commissioner Wax appreciates the efforts of staff on this project and requested a progress report on the YMCA demolition project as well. B. Other President Warner expressed his thanks to Commission Leslie Wesley for her service to this Commission. Ms. Wesley stated that she enjoyed serving and will continue to support the Commission and introduced her replacement, Mr. Carlos Leyva, the South Bend School Corporation Board member. Ms. Wesley stated that she is grateful to have this opportunity and has learned a great deal and encouraged others to get involved. 7. Next Commission Meeting Thursday, February 13, 2025, 9:30 a.m. in the BPW Conference Room 13th Floor 8. Adjournment Thursday, January 23, 2025, 10:22 a.m. ecr-e#diiy TVvy Warner, President 5