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HomeMy WebLinkAbout05-30-13 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING Thursday, May 30, 2013 9:30 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Dr. David Varner, Vice President Mr. Greg Downes Mr. Donald Inks, Interim Commissioner Members Absent: Ms. Valerie Schey Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. David Relos, Economic Development Specialist Mrs. Cheryl Phipps, Recording Secretary Ms. Debrah Jennings, Property Manager Ms. Ann Kolata, Brownfields Specialist Others Present: Mr. Chris Fielding, Assistant Executive Director Mr. Chris Dressel, Planner Ms. Angela McCaslin, Community Investment Mr. Donald Alford Sr. Mr. Cecil Eastman Mr. Conrad Damian Mr. Joseph Tillman Mr. Tim Janowiak Mr. Steve Szaday, Historic Preservation Ms. Thao Nguyen Ms. Dana McDorman- Kolata Mr. Dan Cory Mr. Erin Blasko, South Bend Tribune Ms. Jones noted that Mr. John Stancati, representative to the Redevelopment Commission from the South Bend School Corporation, recently passed away. He will be missed. Ms. Jones said that she will miss his sense of humor and his great kindness. She asked that everyone please keep the family in their thoughts as they grieve his passing. South Bend Redevelopment Commission Regular Meeting — Thursday, May 30, 2013 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, May 9, 2013 Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Thursday, May 9, 2013. 3. APPROVAL OF CLAIMS 324 AIRPORT AEDA Braintree Scientific, Inc. Eppendorf Hull & Associates, Inc. Hull & Associates Inc. Selge Construction Co. Inc. BioExpress Plews Shadley Racher & Braun LLP Weaver Boos Consultants Cressy & Everett Management Corp. DLZ Eraymedical 420 FUND TIF DISTRICT -SBCDA GENERAL DTSB Underground Pipe & Value, Inc. Midland Engineering Co., Inc. South Bend Water Works Centerline Mechanical Contracting, Inc. Midwest Step Saver, Inc. Zimmerman /Volk Associates, Inc. DTSB 422 TIF DISTRICT WEST WASHINGTON Meridian Title Corp 1,540.00 F -Cubed 3,120.00 F -Cubed 262.50 MW & SVP 3,735.00 Extend General Consulting Contract 58,201.75 Ignition Park Ph 1B 2,550.09 F -Cubed 480.50 IDEM 800.00 Ivy Tower Facility Redevelopment 1,293.50 Management Services for Bosch Site 1,720.00 Engineering 1,089.00 F -Cubed 16,875.00 Beautification Program 298.00 Repair Jon Hunt Plaza Fountain Pumps 2,714.92 LaSalle Hotel Management Fees 40.00 325 S Lafayette St. 160.00 SBP &R - Weld Repair Fountain 110.50 Bulk Salt 12,388.04 Analysis of Residential Market Potential 786.09 Surface Lot Management 300.00 Title Search 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT The Troyer Group 2,250.00 Facade Studies Window Replacement 433 REDEVELOPMENT ADMINISTRATION GENERAL Reith -Riley Construction Co, Inc. 158,619.45 Main St /Lafayette Blvd Lawson Fisher Associates 15,971.55 Main St /Lafayette Blvd $ 285,305.89 2 South Bend Redevelopment Commission Regular Meeting — Thursday, May 30, 2013 3. APPROVAL OF CLAIMS (CONT.) Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Claims submitted Thursday, May 9, 2013. 4. COMMUNICATIONS A. Communication from Joseph Tillman of Progressive Urban Industries regarding the sale or grant of real property. To: South Bend Redevelopment Commission From: Joseph Tillman, P. U.I. Re: the sale or grant of real property Greetings, we previously submitted correspondence (4- 23 -13) indicating our discomfort with the commission selling or granting properties without the employment and contracting opportunities out lined in state and federal law. Subsequent to that correspondence the attorney for the commission submitted a memo that denied that the city ever held title to the property. Based on research by our organization, we have concluded that the city did not have actual title to the property. However, we have uncovered some questionable practices concerning how the acquisition and financing of the property was accomplished. The property in question (501 Washington) was not transferred to the historic preservation commission by the city; it was transferred by the St Joseph County Housing Consortium for which the City of South Bend is the lead agency. Since the consortium has funds available to it for the rehabilitation of properties we question why the redevelopment commission was willing to use TIFfunds to finance the rehabilitation of the property. Additionally, although the redevelopment commission did not actually transfer title to this property, there are several other properties that the commission did take part in, these properties are currently part of the triangle redevelopment project. Since the officials of the commission pleaded ignorance when we brought the state regulations to their attention, it is doubtful that these laws were ever considered with transferring these properties. Next there is the issue of transparency; as part of our issue development process we requested from the city a list of all properties that were transferred from the redevelopment commission to a community development corporation. We received a rather long list of properties that the city claimed was done as a courtesy to our organization and that a list of such properties did not exist. This is not true. In 2010 we received a list of properties from the department of Community and Economic Development that shows some properties that were acquired for the benefit of CDC s that were left out of the list that the city submitted to us. These properties are now part of the triangle project. It is these types of actions that forces us to question the sincerity of the city and especially the city attorney. South Bend Redevelopment Commission Regular Meeting — Thursday, May 30, 2013 4. COMMUNICATIONS A. continued... This brings us to our final, and possibly most important part of out correspondence; the issue of public input. The redevelopment commission operates in a manner that does not allow for discourse with the public. This is surprising since the body that empowers them does. In our view this is yet another example of a council enabled commission that sees itself as the final authority that does not answer to anyone. The results of this false assumption is a commission that plays fast and loose with the law, a commission that disregards the rule of law whenever it sees fit. Transparency is the hallmark of a city that respects its residents, even those they do not agree with. It is up to the Mayor and the Common Council to insure that transparency is the standing order of the day. I remain a servant of GOD and the People, respecffiully submitted, Joseph Tillman Progressive Urban Industries Mr. Relos noted that the Legal Department is reviewing the letter and should have a report at the next Redevelopment Commission Meeting. 5. OLD BUSINESS Mr. Relos asked to add an item to Old Business. There was no objection and the item was added. A. Airport Economic Development Area (1) Revised Purchase Agreement (1509 S. Kendall) Mr. Relos noted that at the May 9, 2013 Redevelopment Commission meeting, the Commission approved a change the original purchase agreement of 1509 S. Kendall to allow for a short sale. The purchase agreement was changed and then submitted to the lender who asked for it to be changed further. So we are asking for the Commission's approval in conjunction with the Legal Department to change the purchase agreement again. The dollar amount remains the same, we are just changing the text to make it satisfactory to the lender. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Revised Purchase Agreement (1509 S. Kendall). rd South Bend Redevelopment Commission Regular Meeting — Thursday, May 30, 2013 6. NEW BUSINESS Ms. Jones asked that Item 61(1) be moved to the top of New Business. There was no objection and the item was so moved. I. Other (1) Resolution No. 3140 Commending Donald L. Alford, Sr., for Exemplary Service to the South Bend Redevelopment Commission. Ms. Jones read Resolution No. 3140 in its entirety: RESOLUTIONNO. 3140 A RESOLUTION COMMENDING DONALD L. ALFORD, SR., FOR EXEMPLARY SERVICE TO THE SOUTH BEND REDEVELOPMENT COMMISSION WHEREAS, many people express concern about urban problems and their impact upon the community; and WHEREAS, some people demonstrate their concern by personal involvement in the process of seeking solutions; and WHEREAS, a very few people are both willing and able to bring a degree of dedication that culminates in real, measurable progress, enriching the life of the community; and WHEREAS, Don served as a member of the South Bend Redevelopment Commission since January 16, 2009; and WHEREAS, during his tenure on the Commission Don has had an active role in projects such as rehabilitation of the American Bank & Trust Place, restoration of the Natatorium, the Coveleski Park Neighborhood Initiative, the Studebaker /Oliver Plow Works redevelopment project and the Oliver Industrial Park; the WNIT relocation to South Bend; the Main - Lafayette Corridor, East Race Townhomes and River Race Town Homes; the Veterans Administration Clinic; restoration of the Hansel Center; the Data Realty project; and establishment of the Renaissance District; and WHEREAS, Don unselfishly gave of his time for the betterment of the community with no concern for individual honor or recognition, and has played an instrumental role in setting policy and negotiating through the details of many important projects; and WHEREAS, Don has been committed to the public process of decision making; NOW, THEREFORE, BE IT RESOLVED that the South Bend Redevelopment Commission hereby commends Donald L. Alford, Sr., for his exemplary commitment and distinguished South Bend Redevelopment Commission Regular Meeting — Thursday, May 30, 2013 6. NEW BUSINESS I. Other (1) continued... service to the South Bend Redevelopment Commission and the City of South Bend; thanks him for the outstanding contributions he has made; and declares it will sincerely miss his diligent work and his presence at future meetings. ADOPTED at a meeting of the South Bend Redevelopment Commission held on May 30, 2013, at 1308 County-City Building, 227 W. Jefferson Boulevard, South Bend, Indiana 46601. Ms. Jones noted that she will miss Mr. Alford's quiet and determined support through the last several years. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3140 Commending Donald L. Alford, Sr., for Exemplary Service to the South Bend Redevelopment Commission. A. Election of Secretary to Redevelopment Commission Mr. Varner nominated Ms. Valerie Schey to serve as Secretary of the South Bend Redevelopment Commission. The nomination was seconded by Mr. Downes. There were no further nominations. The vote being unanimous, Ms. Valerie Schey was elected Secretary for the remainder of 2013. B. South Bend Central Development Area (1) Staff Report on Disposition of Property (620 S. Columbia) Mr. Relos noted that this is the remaining property of five Monroe Park HDC houses that went through the disposition process in June 2011, and were listed for sale in September 2011. This particular property is a two story, 1,174 square foot house. It has been converted into two apartments, with the stairway between the floors removed. There is no inside basement access. Both factors make it very difficult to sell to an owner occupant. The average appraised value of the property was determined to be $17,000. The previous four houses sold had appraised values of $15,500 to $27,000 with an average appraised value of $21,250. Two of these four were sold for $5,000, one for $8,000, and one for $10,000. South Bend Redevelopment Commission Regular Meeting — Thursday, May 30, 2013 6. NEW BUSINESS B. South Bend Central Development Area (1) continued... Most of those houses have sat empty for years, have deferred maintenance issues, and in some cases have been broken into and vandalized. This particular property needs a new roof, water heaters, and has only one working furnace. Recently a purchase offer of $7,200 was received for this property. Staff requests approval of this Purchase Offer. Mr. Varner asked if the intent for this house is for it to remain as two separate units. Mr. Relos responded that it will, unless the new owner wants to remodel the inside and build a new stairway. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Purchase Offer for 620 S. Columbia in the amount of $7,200. (2) Authorization for Entry Upon and the Temporary Use of Private Property (Memorial Parking Phase 3B) Mr. Relos noted that this Agreement allows the Commission and its agent's access to the property described to complete the renovation. The term of the agreement is until the renovation is complete or no later than November 30, 2013. Staff requests approval of the Authorization For Temporary Entry Upon and the Temporary Use of Private Property (Access Agreement), to allow the City and the approved contractors on site to complete the demolition and parking lot work this project covers. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Authorization for Entry Upon and the Temporary Use of Private Property (Memorial Parking Phase 3B). (3) Resolution No. 3143 Approving and Authorizing the Execution of an Addendum to the Master Agency Agreement (Second Amendment Memorial Hospital Streetscape Bid Packages 3 & 4) Mr. Relos noted that Resolution No. 3143 and its Second Amendment to the Addendum to the Master Agency Agreement is for the Memorial Hospital Streetscape Improvements Project Bid Packages 3 & 4, DLZ Supplemental Agreement No. 3. It is for additional work DLZ will do outside the original scope of services to complete this project. The additional items include: South Bend Redevelopment Commission Regular Meeting — Thursday, May 30, 2013 6. NEW BUSINESS B. South Bend Central Development Area (3) continued... • Design several options for the parking lot, including pervious concrete, pervious pavers, concrete, and asphalt (pervious surfaces required major leveling of the site; hard surfaces did not but required larger dry wells). • Attend preconstruction meetings; assist with analyzing bids and their selection. • Provide demolition specs and environmental abatement of two buildings. The increase in contract amount to accommodate these services is $46,500. Staff requests approval of Resolution No. 3143. Mr. Varner asked if this will result in a subsequent increase of the cost of the actual construction phase of the project. Mr. Relos responded that it will not. The construction estimate was under budget. Mr. Varner asked if the $1.1 million includes all of the design and design costs. Mr. Relos responded that it does. Upon a motion by Mr. Vamer, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3143 Approving and Authorizing the Execution of an Addendum to the Master Agency Agreement (Second Amendment Memorial Hospital Streetscape Bid Packages 3 & 4, DLZ Supplemental Agreement #3) (4) Request for Increase in Budget for Studebaker Plaza Project (Southwest corner Michigan & Jefferson) Mr. Dressel noted that in November 2012 the Commission approved a budget of $295,214.20 for the Studebaker Plaza project at the southwest corner of Michigan and Jefferson Streets. Since then staff has brought forward two professional services contracts to the Commission for approval — for architectural services in the amount of $3,000 and for construction drawings in the amount of $26,600. These contracts have been awarded from within the approved project budget. We recently received a probable construction cost estimate from Joseph Dzierla & Associates, the consultants preparing construction documents for the plaza. The probable construction costs were much higher than the approved project budget so staff has been value engineering the project to bring costs down. These efforts have resulted in a reduction of approximately $50,000 in expenses but there is still a budget deficit of $25,000. The Board of Public Works has advertised the Studebaker Plaza project and is expected to open bids by their June 11 meeting. Adequate funding needs to be in place in order to award South Bend Redevelopment Commission Regular Meeting — Thursday, May 30, 2013 6. NEW BUSINESS B. South Bend Central Development Area (4) continued... the bid to the lowest responsive responsible bidder. Staff requests approval of an additional $25,000 to bring the project budget to a total of $320,214.20 from the SBCDA TIF. Mr. Varner asked if the cost of $150 per square foot is a reasonable cost for such a project. Mr. Inks responded that the city spent approximately $400,000 on the Key Bank Plaza. Mr. Downes noted that the Key Bank Plaza was not nearly as intricate as this. Mr. Relos noted that we spent approximately $600,000 on the Oliver /Plow project, of which a large part was the cost of the sculpture. Mr. Downes noted that this is a very useful public space. It will be used a lot. The Key Bank Plaza, although it is used occasionally, does not have the high traffic flow this corner does. Mr. Relos noted that although we are requesting this increase to the budget, we always hope that the actual bids come in lower. Mr. Downes noted that this public investment has a percentage of private investing which has taken place in the building which is really significant. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Request for Increase in Budget for Studebaker Plaza Project (Southwest comer Michigan & Jefferson). C. Airport Economic Development Area (1) Confidential Settlement Agreement with the Continental Casualty Company and the Continental Insurance Company concerning the former Oliver Plow property. Ms. Kolata noted that our environmental attorneys, Plews Shadley Racher & Braun, have negotiated a Confidential Settlement Agreement with Continental Casualty Company and The Continental Insurance Company (Continental) related to environmental claims made by the Commission concerning the former Oliver Plow property. Continental is willing to pay the Commission and the City of South Bend an amount that has been approved by our Legal Department to settle this claim. This Agreement covers Continental Casualty Company and the Continental Insurance Company and settles all claims related to this matter. Your approval of this Confidential Settlement Agreement is requested. South Bend Redevelopment Commission Regular Meeting — Thursday, May 30, 2013 6. NEW BUSINESS C. Airport Economic Development Area (1) continued... This is the final insurance recovery claim that we have related to the Studebaker /Oliver project which began in 1999 with the writing and approval of the Studebaker /Oliver Development Plan. Implementation of that plan began in 2000. I am preparing a final report on the project and will have that ready to present at your July 25 meeting. This will include information on the total amount of insurance settlements we have received. Upon a motion by Mr. Varner, seconded by Mr. Inks and unanimously carried, the Commission approved the Confidential Settlement Agreement with the Continental Casualty Company and the Continental Insurance Company concerning the former Oliver Plow property. (2) Resolution No. 3141 Related to Acquisition of Property in the Airport Economic Development Area (725 W. Indiana) Mr. Relos noted that Resolution No. 3141 sets the offering price for the acquisition of 725 W. Indiana. This property was added to the Airport Economic Development Area's Acquisition List by Resolution No. 2668 on May 21, 2010. It was added in an effort to clean and clear the southern boundary of Ignition Park, and to help stabilize the Rum Village neighborhood to the south. This is a commercial property that contains 3 lots and a building. Resolution No. 3141 sets the acquisition value of the property at $51,500. The acquisition value is the average value as determined by two independent appraisals. Staff requests approval of Resolution No. 3141, to allow the acquisition of this property to proceed. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3141 Related to Acquisition of Property in the Airport Economic Development Area (725 W. Indiana). (3) Resolution No. 3142 Related to Acquisition of Property in the Airport Economic Development Area (1505 S. Kendall) Mr. Relos noted that Resolution No. 3142 sets the offering price the acquisition of 1505 S. Kendall. This property was added to the Airport Economic Development Area's Acquisition List by Resolution No. 2668 on May 21, 2010. It was added in an effort to clean and clear the southern boundary of Ignition Park, and to help stabilize the Rum Village neighborhood to the south. This is a commercial property that contains 2 lots and a building. Resolution No. 3142 sets the acquisition value of the property at $26,250. The acquisition value is the average value 10 South Bend Redevelopment Commission Regular Meeting — Thursday, May 30, 2013 6. NEW BUSINESS C. Airport Economic Development Area (3) continued... as determined by two independent appraisals. Staff requests approval of Resolution No. 3142, to allow the acquisition of this property to proceed. Upon a motion by Mr. Downes, seconded by Mr. Vamer and unanimously carried, the Commission approved Resolution No. 3142 Related to Acquisition of Property in the Airport Economic Development Area (1505 S. Kendall). D. West Washington - Chapin Development Area There was no business in the West Washington- Chapin Development Area. E. South Side Development Area There was no business in the South Side Development Area. F. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. G. Douglas Road Development Area There was no business in the Douglas Road Development Area. H. Ratification of Services Contracts There was no Ratification of Services Contracts 7. PROGRESS REPORTS There were no Progress Reports 8. NEXT COMMISSION MEETING The Next Regular Meeting of the Redevelopment Commission is scheduled for Thursday, June 13, 2013 at 9:30 a.m. 11 South Bend Redevelopment Commission Regular Meeting — Thursday, May 30, 2013 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Varner made a motion that the meeting be adjourned. Mr. Downes seconded. The meeting was adjourned at 9:56 a.m. i 12 Marcia I. Jones, Pres' e t