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HomeMy WebLinkAbout3A Redevelopment Commission Minutes 2.13.25 - Signed CITY OF SOUTH BEND REDEVELOPMENT COMMISSION SOUTH BEND REDEVELOPMENT COMMISSION MINUTES February 13, 2025, at 9:30 a.m. BPW Conference Room, 13th Floor, County-City Building https://tinyurl.com/RDC-2025-2T The South Bend Redevelopment Commission was called to order at 9:31 a.m. President Troy Warner presiding. 1. ROLL CALL Members Present: Troy Warner, President David Relos, Vice President Eli Wax, Commissioner Vivian Sallie, Secretary, tendered her resignation letter, and the Commission thanked her for her service. Members Absent: Gillian Shaw, 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 Tim Corcoran, Chief Planner, DCI Erik Glavich, Director of Growth and Opportunity, DCI - Virtual Rosa Tomas, Director of Finance, DCI Joseph Molnar, Asst. Dir. of Growth and Opp., DCI Erin Michaels, Property Development Manager, DCI - Virtual Alexia Velazquez, Local Government Manager for FEC Laura Hensley, Board Secretary, DCI CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 13, 2025 2 Others Present: Leslie Biek, Assistant City Engineer Charlotte Brach, Senior Engineer Frank Niemiec, 1250 E. Farrington Circle Greg Swiercz, SB Tribune Kathy Schuth, Near Northwest Neighborhood Rachel Tomas Morgan, Councilwoman Matt Barrett, 110 S. Niles Ave. 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, January 23, 2025 Upon a motion by David Relos for approval, second by Eli Wax, the motion carried unanimously; the Commission approved the minutes of the regular meeting of Thursday, January 23, 2025. 3. Approval of Claims A. Claims Allowances January 21, 2025 Upon a motion by David Relos for approval, second by Eli Wax, the motion carried unanimously; the Commission approved the claims allowances of January 21, 2025. B. Claims Allowances January 28, 2025 Upon a motion by David Relos for approval, second by Eli Wax, the motion carried unanimously; the Commission approved the claims allowances of January 28, 2025. 4. Old Business A. None 5. New Business A. Redevelopment General Fund (a.k.a Pokagon Fund) 1. Budget Request (NNN) Sarah Schaefer, Deputy Director of Community Investment, presented a budget request for $65,000 for affordable, urban infill housing. Ms. Schaefer gave some background on the project, there was an RFP from a couple years ago called the Sherman Harrison infill development RFP, in the Near Northwest Neighborhood Inc. for four (4) new affordable housing units. A duplex & ADU in the amount of CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 13, 2025 3 $370,000, and a single-family home in the amount of $130,000. Ms. Schaefer stated that the goals are to revitalize the urban neighborhoods, help stabilize the market and attract new developers to these neighborhoods. She explained that, the construction bids came in higher than expected and the total cost is estimated at $1.14 million which leaves a funding gap of $65,000. Ms. Kathy Schuth is the Executive Director of the NNN at a non-profit community development corporation on the near northwest side of South Bend with a mission to revitalize and stabilize their neighborhood. Ms. Schuth has been working directly with contractors and trying to recruit them since this has been out for bids three (3) times. She explained that the duplex is under construction. However, the single-family home funds are lagging, and funds have been added from the Federal Home Loan Bank of Indianapolis but still looking for ways to fill the gap. Commissioner Wax asked if the $65,000 will fund the entire project and Ms. Schuth stated yes. Vice President Relos asked if they plan to sell the home and Ms. Schuth stated that they will maintain and manage the property as three (3) rental units. President Warner stated that our portion would be approximately 5%. Matt Barrett asked about the selling price and Ms. Schuth explained the $426,000 includes both hard and soft costs for the development cost of all acquisitions, but the home will sell to the family at a market rate and right now on that block in that neighborhood is roughly $180,000. Upon a motion by David Relos for approval, seconded by Troy Warner, the motion carried unanimously; the Commission approved the Budget Request as presented on February 13, 2025. B. River East Development Area 1. Budget Request (Mishawaka Streetscape Design) Leslie Biek, Assistant City Engineer, presented a budget request for $500,000 of additional funds for construction of a streetscape project from Longfellow/Byres to Emerson which includes lanes reductions, separated shared-use path on the South side of street, water main replacement, storm sewer installation, streetscape elements such as lighting, benches, bike hitches and trees. Tim Corcoran, Chief Planner for Community Investment, stated that after speaking with residents in the community this intersection is busy with pedestrian traffic and needs safety elements put in place. Vice President Relos asked about the medians and the left turn lanes and Mr. Corcoran explained that the medians will be installed to take up the lane space and the left turns will still be accessible. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 13, 2025 4 Commissioner Wax asked if the medians would cause too many traffic backups and Mr. Corcoran stated that the volume of traffic in this section would flow smoothly and the medians are designed for traffic calming. Vice President Relos asked about the left turn lanes heading East and Mr. Corcoran stated that there will be space in the center for vehicles to safely wait to turn. Joseph Molnar, Assistant Director of Growth and Opportunity, stated that this is much needed in this busy area with the farmers market and local businesses and is in favor of this project. Rachel Tomas Morgan, Councilwoman agrees that traffic calming efforts are needed in this area. President Warner explained that two (2) years ago he attended a planning meeting which forty (40) residents and neighboring businesses and expressed the need to slow the traffic down in this walkable market district and thanked staff for their work. Vice President Relos is also in favor of the project. Commissioner Wax expressed concerns and feels that it could be done in a way that is most efficient to minimize disruption to the remaining two lanes of traffic and not make it too difficult to navigate from one part of the city to the next and still make it safe. Willow Weatherall is also in favor of the project. Frank Niemiec asked about this interfering with a city trolley/rail project and Caleb Bauer, Executive Director of Community Investment stated that the Administration does not support this idea and believes it is extremely cost prohibitive at this time. Upon a motion by David Relos for approval, seconded by Troy Warner, the motion carried unanimously; the Commission approved the Budget Request as presented on February 13, 2025. 2. Budget Request (Potawatomi Park, Phase I) Tim Corcoran, Chief Planner for Community Investment, presented a budget request for $4.5 million to add pedestrian safety elements, traffic calming and additional parking on both Greenlawn Ave. and Wall St. to accommodate the increasing popularity of the Potawatomi Park and Zoo as well as demolition of the pool. Mr. Corcoran stated that we would be adding two (2) raised crossings that line up with the sidewalks on Southwood and Hoover Ave. for a better experience for people crossing the street. There will also be the installation of a neighborhood traffic circle on Wall St. so that drivers can find parking without turning around in driveways. This will include stop controls, mountable curbs for buses and allows for vehicular circulation. Mr. Corcoran stated that on Wall St., there will be traffic calming measures which include two (2) crosswalks and 1-2 raised intersections as well as 90-degree parking on the South side. There will also be a pedestrian crossing on Ironwood Dr. at Wall St. with a central CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 13, 2025 5 pedestrian island, flashing sign, and bump outs added to the North side of Wall St. for safer crossing from the River Park neighborhood. Commissioner Wax asked why the neighborhood circle is not a full traffic circle. Mr. Corcoran stated that this has been discussed, and residents have concerns about people and students going around the circle too fast so this might be a solution for that, however, we are still in the concept phase. Mr. Corcoran also clarified that the pedestrian crossing on Ironwood is not a stop but yellow flashing lights and will be push button activated and help with the lane shift and street alignment issue. Rachel Tomas Morgan, Councilwoman asked if there is consideration for bike lanes/multi-use paths in this plan. Mr. Corcoran stated that there is a widened sidewalk connecting Ironwood to Greenlawn on the South side as well as on Greenlawn. Willow Weatherall stated that there is a disjointed sidewalk on the East side of Wall St. and on the Southwest corner of the park that is not connected to the zoo trail system and has a grassy hill that she hopes will be addressed. Upon a motion by David Relos for approval, seconded by Eli Wax, the motion carried unanimously; the Commission approved the Budget Request as presented on February 13, 2025. C. West Washington Development Area 1. Budget Request (MLK Dream Center Financial Empowerment Center) Sarah Schaefer, Deputy Director of Community Investment, presented a budget request for $40,000 for the buildout space for the Financial Empowerment Center office at the new Martin Luther King Jr. Dream Center opening in April. Ms. Schaefer explained that this center will provide free one-on-one financial counseling for South Bend residents. The services provided will focus on increasing savings, improving credit, reducing debt, and safe banking by using professionally trained counselors. Ms. Schaefer stated that there will be three (3) staff members, one program manager and two counselors that will need private space for sessions and the goal is to reach 480 residents per counselor, per year. She also explained they are expecting the hours to be 9 a.m. to 5 p.m. Monday, Wednesday and Friday and Tuesday, Thursdays, 8 a.m. to 8 p.m. as well as considering doing some additional hours on Saturdays during the Linden Ave. Farmers Market, which will also be at the Dream Center. The request is for adjustments to the current layout and furniture. Alexia Velazquez, Local Government Manager for FEC, stated that this is the first program of its kind in the state of Indiana and her team CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 13, 2025 6 along with Kathy Schuth, with the Near Northwest Neighborhood non- profit group will partner together and are very excited to get started. Ms. Velazquez explained they are being mentored by a group in Maryland, as well as a peer group from California, Colorado, New York, and Florida. Commissioner Wax asked if they could collect data regarding the success of the program and keep the Commission updated. Ms. Velazquez explained that they are using the Salesforce system to manage progress and track goals. Upon a motion by Eli Wax for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Budget Request as presented on February 13, 2025. D. River West Development Area 1. Purchase Agreement (State Theater) Caleb Bauer, Executive Director of Community Investment, presented the purchase agreement for two (2) parcels located at 212 and 216 S. Michigan St. for $800,000 zoned for DT-Downtown and is a .37-acre site with 16,995 square feet of space. Mr. Bauer explained that this property has been vacant and in litigation since March of 2023 and a judgment has been made with a court-ordered sheriff’s sale on December 4th. Mr. Bauer stated that the State Theater is a historic building constructed in 1919 and is listed on the National Register of Historic Places. Mr. Bauer explained that it’s not the City’s intention to renovate the property but to stabilize the building and ensure that it’s weather tight to buy time to work with the community for a better future for the building. He also explained that the City does have an easement on the façade of the building that carries maintenance requirements and if someone doesn’t step in soon, the building may be at a point of demolition. President Warner asked if we know what the stabilization will cost and if there are other partners lined up for the renovation. Mr. Bauer explained we do not have a specific number today, however, following the due diligence process with the purchase agreement and we would not move forward towards closing if it wasn’t viable and we have had conversations and interest with organizations to preserve the theater. Commissioner Wax asked how the price was determined and Mr. Bauer stated that it was negotiated with the lender and was less than the average of two (2) appraisals and we could update the Commissioners regarding the cost estimates prior to closing. Vice President Relos stated that it’s a building worth saving and necessary for the RDC to step in to save it. Frank Niemiec expressed concerns about the project. Willow Weatherall, Executive Director of Downtown CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 13, 2025 7 South Bend is in favor of the agreement and feels it’s a special place in the hearts and minds of the community. Upon a motion by Eli Wax for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Purchase Agreement as presented on February 13, 2025. 2. Development Agreement (Grand Leader) Joseph Molnar, Assistant Director of Growth and Opportunity, presented a development agreement for an amount not to exceed $900,000 at 225-229 S. Michigan St. (former Center City Place). Mr. Molnar explained that the agreement specifies that the developer will take possession no later than July 31, 2025, invest no less than $5.1 million into the property, complete the project by the end of 2028, and commits to rehabbing the ground floor for commercial use, floors 2-3 for hotel or office use, and confirms issuance of a certificate of occupancy for all three floors. He stated that the funding amount will be used to replace the roof, restoration of the historic façade including new windows, and reconnecting utilities. Vice President Relos asked if we know what is behind the current 1960’s façade and Christina Miller, the Developer, stated that architects, structural engineers and masonry experts have evaluated the building and what they found is the original stonework still exists and is intact and is hopeful that any damaged stonework could be matched to preserve the historic look of the original building. Mr. Molnar also pointed out that there was a scriber’s error on the original agreement but that has been fixed on the version that would be approved today. Commissioner Wax asked if the RDC is contributing prior to the purchase and Ms. Miller stated no, they are currently doing asbestos remediation and have paid for that themselves. She also mentioned that the utilities would need to be moved from the vault and the sewer and water lines would need to re-connected. The building also has a significant amount of water damage from the roof. Ms. Miller also owns the Dainty Maid Co. and is happy that the two buildings will connect. Upon a motion by David Relos for approval, seconded by Eli Wax, the motion carried unanimously; the Commission approved the Development Agreement as presented on February 13, 2025. 3. Budget Request (Riverfront West Engineering Services) CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 13, 2025 8 Charlotte Brach, Senior Engineer, presented a budget request for $665,000 for full engineering design and bid documents for the JC Hart development and will also include completing the primary plat for the Major Subdivision to establish the new right-of-way for the street network, secondary plat, relocation of utilities, sidewalks, lighting and trees. Caleb Bauer explained that a READI 2.0 grant award has been announced, and the City is working through negotiations with EDC and once we have a signed contract the RDC could be reimbursed for this request. Commissioner Wax asked if it’s guaranteed, and Mr. Bauer stated that he’s fairly confident we will receive the award. Upon a motion by David Relos for approval, seconded by Eli Wax, the motion carried unanimously; the Commission approved the Budget Request as presented on February 13, 2025. 6.Progress Reports A.Tax Abatement B.Common Council C.Other (Election of Secretary) President Troy Warner nominated Eli Wax as Commission Secretary and Mr. Wax accepted. Upon a motion by David Relos for approval, seconded by Troy Warner, the motion carried unanimously; the Commission to accept the nomination of Eli Wax as Secretary of the RDC on February 13, 2025. 7.Next Commission Meeting Thursday, February 27, 2025, 9:30 a.m. BPW Conference Room 13th Floor 8.Adjournment Thursday, February 13, 2025, 11:02 a.m. ______________________________ ______________________________ Eli Wax, Secretary Troy Warner, President