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HomeMy WebLinkAbout05-09-13 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING May 9, 2013 9:30 a.m. Presiding: Marcia I. Jones, President 1. ROLL CALL 227 West Jefferson Boulevard South Bend, Indiana Members Present: Ms. Marcia Jones, President Dr. David Varner, Vice President Mr. Greg Downes Ms. Valarie Schey Mr. Don Inks, Interim Commissioner Members Absent: Mr. John Stancati Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. David Relos, Economic Development Specialist Mrs. Cheryl Phipps, Recording Secretary Ms. Debrah Jennings, Property Manager Others Present: Mr. Scott Ford, Executive Director Mr. Chris Fielding, Assistant Executive Director Mr. Jitin Kain, Economic Development Specialist Ms. Angela McCaslin, Community Investment Ms. Mo Miller Mr. Cecil Eastman Mr. Conrad Damian 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, April 25, 2013 Upon a motion by Ms. Schey, seconded by Mr. Downes and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Thursday, April 25, 2013. South Bend Redevelopment Commission Regular Meeting —May 9, 2013 3. APPROVAL OF CLAIMS 324 AIRPORT AREA Faegre Baker Daniel DLZ Sopko, Nussbaum, Inabnit & Kaczmarek Code for America Plews Shadley Racher & Braun LLP South Bend Water Works Cressy & Everett Management 420 FUND TIF DISTRICT -SBCDA GENERAL Faegre Baker Daniel Joseph A Dzieria & Associates Cressy & Everett Management Corp. South Bend Water Works South Bend Water Works Gibson - Lewis, LLC 422 TIF DISTRICT WEST WASHINGTON Faegre Baker Daniel Historic Rushton LP 12,315.00 Outside Legal Assistance 1,000.00 Engineering 250.00 Legal Services 65,000.00 Code for America 9,553.00 Legal - Bosch /Honeywell /ARG Corp Litigation /Union 43,937.50 Station /Real Estate 401 N Bendix Dr. Guard / 401 N Bendix Dr. / 2721 2,253.31 Kenwood Ave 1,672.00 Management Services Agreement for Bosch Site 1,597.00 Outside Legal Assistance 13,300.00 Studebaker Plaza 657.48 College Football Hall of Fame 143.30 514 Rush St. / 701 E South St 349.55 111 S Saint Joseph St. 43,937.50 Skyway Plaza Building Window Replacement 931.00 Outside Legal Assistance 16,896.14 Disbursement Agreement 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA #1 Christipher B. Burke Engineering, LLC. 16,218.00 Cardno JFNew 7,599.60 DLZ 6,370.00 Meridian Title Corporation 650.00 Lawson Fisher Associates 3,195.69 DLZ 3,906.00 SB Fellows St & Ireland Rd Intersection Improvements Drainage Issues on Fellows St. Fellow St. RW Aqc. Main - Lafayette Corridor Right of Way Main St /Lafayette Blvd Connector from Ireland Rd to Chippewa Rd Ireland Rd Right of Way Acquisition 433 REDEVELOPMENT ADMINISTRATION GENERAL Faegre Baker Daniel 384.00 Outside Legal Assistance 436 TIF NORTHEST RESIDENTIAL US Bank 991.00 Bonds 2008 Eddy St Commons Upon a motion by Mr. Downes, seconded by Ms. Schey and unanimously carried, the Commission approved the Claims submitted May 9, 2013. 2 South Bend Redevelopment Commission Regular Meeting —May 9, 2013 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. South Bend Central Development Area (1) Resolution No. 3135 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Memorial Parking Phase 3B Project). Mr. Relos noted that this Addendum is for the demolition and clearance of two structures, site grading, and the installation of new parking lots on the east side of the 400 - 500 block of N. Michigan and at the northwest corner of Madison and Michigan St. This past year new parking lots were completed on the west side of the 400 block of N. Michigan Street, and this work will compliment and complete the installation of new parking areas along Michigan Street north of La Salle. Included in the parking lot work are irrigation systems, landscaping, and new lighting, all of which has dramatically enhanced this main gateway into and out of the downtown area. The estimated budget for this project is $1,100,000, which is similar to the budget for the work completed last year and will be funded by the South Bend Central Medical District. Staff requests approval of Resolution No. 3135 and the Addendum To Master Agency Agreement for the completion of this project, in a not -to- exceed amount of $1,100,000. Mr. Relos added that the City of South Bend has had a long standing partnership with Memorial Hospital over the years. The city has invested millions of dollars in Memorial's campus; they are listed in the top 100 hospitals in the country, top 5% for patient safety. The Redevelopment Commission's work in partnering with Memorial over the years has helped keep Memorial in South Bend; helped expand its campus and receive many national awards. Memorial is the second largest employer not just in the city, but in the county also. Mr. Varner asked when the Medical TIF District expires. Mr. Relos responded that it will end in 2015. Mr. Vamer asked if there are still some resources in that TIF district for improvements to Leeper Park. Mr. Relos responded that there have been conversations with Memorial about that and Memorial is very amenable to using the Medical TIF for Leeper Park improvements. They have also agreed to pay for the rehabilitation of the viaduct north of the South Bend Redevelopment Commission Regular Meeting —May 9, 2013 6. NEW BUSINESS A. South Bend Central Development Area (1) continued... bridge, which is outside the TIF area. They are getting proposals from a local artist to create a mural on it. Ms. Jones asked who is responsible for the landscaping north of the viaduct, on the east side. Mr. Relos responded that the Parks Department is responsible for that. Ms. Schey noted that although she has not been on the Commission long, and she understands that the decisions that are made are not easy, she has observed a pattern that concerns her. She has noticed that the Redevelopment Commission spends an inordinate amount of money trying to keep businesses in the South Bend area. Not so long ago there were discussions regarding the Bosch Plant and the lucrative arrangements and terms that were put in place to keep those jobs in South Bend. Now, Commission is considering spending $1,100,000 of public money on a parking lot that will benefit Memorial Hospital, the second largest employer in the City. Mr. Relos responded that he views those expenditures in lieu of a tax abatement. In a development agreement Memorial promised to make a certain amount of improvements to their properties; the Redevelopment Commission agreed to support that new development with infrastructure improvements through the TIF district, based on the promise of Memorial's increased assessed value and added jobs. We would make a substantial commitment to a project through tax abatement for similar private investment and jobs. Memorial preferred to have this arrangement in lieu of tax abatement. Ms. Schey noted that Memorial is a non -profit entity and questioned whether they pay taxes at all. Mr. Relos noted that they do pay $1,600,000 a year in taxes. Although they are a non -profit corporation, not all of their properties are tax exempt: it depends on their use. Mr. Varner noted that one example is the Parking Garage where the physicians' offices are. Floors 4, 5, & 6 are taxable. Mr. Relos noted that the the Skyway Building, Navarre Place, the Heart and Vascular Center, and most of the office buildings are taxable as well. Mr. Downes responded that he understands Ms. Schey's concern; however, it is not fair or accurate to compare Memorial Hospital to the Bosch situation. Memorial is not going to go anywhere else. Memorial is a community hospital. It is not only non - profit; Memorial's campus is a gateway to the city. The job that has been done to the parking lots makes it more attractive than those existing buildings that are still there. This is a lot different situation than trying to make concessions to a privately owned business that we're trying to convince to stay in South Bend and retain jobs. 0 South Bend Redevelopment Commission Regular Meeting —May 9, 2013 6. NEW BUSINESS A. South Bend Central Development Area (1) continued... Mr. Inks noted that the Medical TIF District was created to allow the tax dollars generated by Memorial's campus expansion to be rolled into infrastructure improvements in that area for fifteen years. Memorial was landlocked. They needed street reconfiguration in order to grow. There is a development agreement that lays out all the expectations and promises on both sides. Ms. Schey noted that her concern is that she doesn't want the city to be in the position of having to pay to keep a business in the city. Mr. Relos noted that every situation is looked at separately. Mr. Varner noted that after 2015 the TIF will be dissolved and the tax revenue will be divided between the various jurisdictions. He would be concerned if Memorial asked for the TIF district to be extended. The tax revenues cannot forever be dedicated for the private use of one company. Mr. Downes noted that it may depend on what their future expansion plans are. All of the work that has been done isn't just for the benefit of Memorial. It's for the benefit for the City of South Bend and all its citizens who use Memorial. It is a better place to go because of the improvements that have been made. Mr. Relos noted that Memorial has been a tremendous partner, not just to the city, but all over. They partnered with St. Joseph Hospital in opening a satellite office in the LaSalle Square Physicians Clinic. Memorial also reopened the Madison Center Clinic. Memorial contributes to the sponsorship of almost all the big events downtown. If this were just Memorial Hospital asking for help on a parking lot and making no other commitments, the outcome would be different. The commitments they've done far outweigh the help that the Redevelopment Commission has given them. Mr. Downes made a motion to approve Resolution No. 3135 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Memorial Parking Phase 3B Project). Mr. Inks seconded. The motion carried on a vote of four to one. Ms. Schey was opposed. B. Airport Economic Development Area (1) First Amendment to Development Agreement with Union Station Properties, LP for the Renaissance District project. South Bend Redevelopment Commission Regular Meeting —May 9, 2013 6. NEW BUSINESS B. Airport Economic Development Area (1) continued... Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission tabled Item 6.B.1. indefinitely. (2) Revised Purchase Agreement (1509 S. Kendall). Mr. Relos noted that on November 22, 2011, the Commission approved an Administrative Settlement for the acquisition of 1509 S. Kendall St. This settlement was in the amount of $59,100, and included $55,500 to pay off the delinquent mortgage, $1,500 in legal fees, and $2,100 in moving costs to the son living in the home. Since that time, additional liens have been placed against the property, which has now taken the payoff amount to gain clear title above the approved $59,100. To keep the acquisition of this property at or below the approved dollar amount, we would like to proceed with short sale paperwork to try to gain lender approval of a smaller dollar amount of $40,000. To proceed with the short sale paperwork, the lender needs a purchase agreement stating a purchase price of $40,000. Staff requests approval to modify the purchase agreement to reflect a $40,000 purchase price, the son's waiver of relocation costs, up to $12,000 in lien payoffs, $3,000 in legal fees, plus closing costs, for a total acquisition cost of approximately $56,000. Mr. Vamer asked if this was a signed purchase agreement already. Mr. Relos responded that it was signed; however we are way past the deadline. Mr. Meteiver responded that the purchase agreement had some deadline dates that were past due and this process needs to start over again. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Revised Purchase Agreement (1509 S. Kendall). C. West Washington- Chapin Development Area There was no business in the West Washington- Chapin Development Area. D. South Side Development Area (1) Resolution No. 3139 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Fellows St. Supplement #6). South Bend Redevelopment Commission Regular Meeting —May 9, 2013 6. NEW BUSINESS D. South Side Development Area (1) continued... Mr. Divita noted that Resolution No. 3139 and Amendment to the Addendum to the Master Agency Agreement (Fellows Street Corridor Improvement Project — Supplement #6) authorize the Board of Public Works to act as the Commission's agent, and they set a total budget of $46,300 to two consultants to complete roadway design and for tasks that transition the project from the design phase to the implementation phase. First, is the proposed amendment adding $28,300 to the existing agreement with Christopher B. Burke Engineering which includes the following tasks: • Completion of sidewalk and stormwater management design per the direction provided by the City's Department of Public Works. • Design of a traffic signal loop system for the north leg of the Fellows & Ireland intersection to coordinate with INDOT's improvements to the southern approach to the intersection, and • Coordination with stormwater management consultant Cardno JFNew on bidding documents and with right -of -way acquisition consultant DLZ on property acquisition. Second, is the proposed amendment adding an $18,000 supplement to the existing right -of- way acquisition services agreement with DLZ, which was previously approved by the Commission with complete right -of -way engineering (legal description, plats, boundary surveys) and right -of -way staking. Staff requests approval of Resolution No. 3139 and Amendment to the Addendum to the Master Agency Agreement (Fellows Street Corridor Improvement Project — Supplement #6), including the $46,300 budget. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3139, approving and authorizing the execution of an Addendum to the Master Agency Agreement (Fellows St. Supplement #6). E. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. F. Douglas Road Development Area There was no business in the Douglas Road Development Area. 7 South Bend Redevelopment Commission Regular Meeting —May 9, 2013 6. NEW BUSINESS G. Other (1) Resolution No. 3138 appointing members to the Development Design Review Committee (Aaron Perri). Mr. Relos noted that The Development Design Review Committee is composed of nine members, five appointed by the Redevelopment Commission and four by virtue of their position (City Engineer, City Building Commissioner, Director of the St. Joseph County Area Plan Commission, and the Director of the Division of Redevelopment). There are three Development Design Areas: South Bend Central, Studebaker Corridor, and the Airport Economic Development Area. The boundaries of the Design Review Areas are the same as the Development Areas as established by the Redevelopment Commission. These areas have design guidelines established by the Commission. Any exterior improvements in these areas need to conform to those guidelines. If improvements are proposed which are not consistent with the guidelines, they are referred to the Review Committee, which can waive the guideline requirements, if they desire. Staff requests approval of Resolution No. 3138. Upon a motion by Ms. Schey, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3128 appointing members to the Development Design Review Committee (Aaron Perri). H. Ratification of Services Contracts Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Ratification of Services Contracts. 7. PROGRESS REPORTS There were no Progress Reports Commission Service Contract Staff Role in Contractor Transaction Provided Amount Member MLC -Right of Way Acquisition Meridian Title Title work $150 Relos MLC -Right of Way I Acquisition I Meridian Title I Title Work $150 1 Relos MLC -Right of Way Acquisition Meridian Title Title Work $150 Relos MLC -Right of Way Acquisition i Meridian Title Title Work $150 Relos Metalmation Drive Acquisition Meridian Title Title Work $100 Relos Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Ratification of Services Contracts. 7. PROGRESS REPORTS There were no Progress Reports South Bend Redevelopment Commission Regular Meeting —May 9, 2013 S. NEXT COMMISSION MEETING The Next Regular Meeting of the Redevelopment Commission is scheduled for Thursday, May 30, 2013. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Downes made a motion that the meeting be adjourned. Mr. Varner seconded. The meeting was adjourned at 9:54 a.m. ott Ford, Executive Director Marcia I. Jones, esident 0