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HomeMy WebLinkAbout2 Minutes 06-13-13 MeetingSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING Thursday, June 13, 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 Ms. Valerie Schey, Secretary Mr. Greg Downes Mr. Don Inks Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. David Relos, Economic Development Specialist Mrs. Cheryl Phipps, Recording Secretary Mr. Jitin Kain, Director, Planning Ms. Debrah Jennings, Property Manager Others Present: Mr. Scott Ford, Executive Director Ms. Angela McCaslin, Community Investment Mr. Joseph Tillman, Progressive Urban Industries Mr. Cecil Eastman, Administration & Finance Mr. Conrad Damian Mr. Bill Lamie, ADG Ms. Catherine Hostetler, Historic Pres. Commission Ms. Katrina Marguardt Ms. Glenda Lamont Ms. Audra Sieradzki Ms. Kim Sieradzki Mr. David Sieradzki Ms. Vicky Jacobson, South Bend Tribune 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, May 30, 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, May 30, 2013. South Bend Redevelopment Commission Regular Meeting — Thursday, June 13, 2013 3. APPROVAL OF CLAIMS 324 AIRPORT AREA Meridian Title Corporation Jones Petrie Rafinski Sopko, Nussbaum, Inabnit & Kaczmarek Plews Shadley Racher & Braun LLP All -Phase South Bend Water Works Cressy & Everett 420 FUND TIF DISTRICT -SBCDA GENERAL Shakespeare Lighting Design Sopko, Nussbaum, Inabnit & Kaczmarek ADG South Bend Tribune Hartman Electric, Inc. South Bend Water Works DTSB Rose Pest Solutions 700.00 Outside Legal Assistance 12,990.77 Ivy Tower 862.50 Legal Services 18,185.68 Legal- Bosch /Honeywell /ARG Corp 1,000.00 Litigation /Union Station /Real Estate 20,030.99 Union Station Tech Center 2,132.45 401 N Bendix Dr. Guard/ 2721 Kenwood 127.35 Ave 22,722.05 Mgmt. Services Agreement for Bosch Site 2,450.00 River Lighting design 375,00 Legal Services 1,000.00 Century Center West Entry Improvements 95.98 Notice to Bidders 548.93 Unity Gardens @ LaSalle Square 127.35 Residential 701 E South / 514 Rush St. 38,660.00 Downtown Beautification 105.00 Pest Control - LaSalle Hotel 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT DLZ 20,621.00 Engineering 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA #1 DLZ 3,560.00 Fellows St. RW Acquisition. 5 145.167.70 Upon a motion by Mr. Downes, seconded by Ms. Schey and unanimously carried, the Commission approved the Claims submitted Thursday, June 13, 2013. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS Mr. Meteiver asked to add an item to Old Business. There was no objection and Item 5.A.(1) was added. 2 South Bend Redevelopment Commission Regular Meeting — Thursday, June 13, 2013 5. OLD BUSINESS (Cont.) A. Other (1) Update of letter from Mr. Joseph Tillman regarding the sale or grant of real property (Triangle Neighborhood properties). Mr. Meteiver noted that the research on this issue was taking more time than anticipated. The conveyance of the Triangle Neighborhood properties was actually by a grant agreement rather than a development agreement. That will make a difference of how legal looks at the transaction. It was an agreement between the City of South Bend's Board of Works, not the Redevelopment Commission, and the Northeast Neighborhood Revitalization Organization (NNRO). The agreement was originally written in July of 2004. Most of the records are in archives and it is taking some time to get them back. The NNRO was created in 2003 when the Northeast Neighborhood Development Area was created. As part of this grant agreement, the city provided $500,000 to the NNRO for property acquisition in the Eddy St. Commons Triangle Neighborhood. The specific projects under this agreement were for real property acquisition, relocation expenses, site clearance, maintenance and insurance of properties, and any recording fees and expenses associated with those particular items. The agreement called for titling all of the properties that were acquired there in the name of the Northeast Neighborhood Revitalization Organization. That agreement was signed off by the Board of Works on March 14, 2005. It was amended by the I't Amendment to that agreement which was executed by the Board of Works on June 27, 2005. The amendment added another $500,000 to the acquisition funds for the NNRO. So $1 million dollars in acquisition funds were provided by the city through the Board of Public Works for the NNRO to acquire those various properties. Mr. Meteiver has not yet seen the minutes from the Board of Works meetings where the documents were adopted. That may shed some additional light on the total transaction. He also was not the lawyer that developed this agreement; it was before his time with the city. Mr. Dick Nussbaum was the lawyer that worked on this agreement; he is getting records out of his archives so that legal can learn more about the transaction. Ms. Schey asked whether the inquiry that Mr. Tillman submitted has anything to do with providing opportunities for Section 3. Mr. Meteiver responded that it does, and that the statute he cited is specific to the Redevelopment Commission and disposition of properties titled in the Redevelopment Commission's name to community development corporations; at this point Mr. Meteiver does not have enough information to determine whether that particular statute applies to this transaction or not. Ms. Schey asked that after the meeting Mr. Meteiver make himself available to speak to Mr. Tillman. Mr. Meteiver responded that he extended the offer to meet with Mr. Tillman following the previous meeting. Mr. Tillman didn't avail himself of that offer. He would welcome Mr. Tillman's questions after this meeting. Mr. Vamer asked whether either one of those agreements identifies the source of the funds. Mr. Meteiver responded that they do not. South Bend Redevelopment Commission Regular Meeting — Thursday, June 13, 2013 5. OLD BUSINESS (Cont.) A. Other (1) continued... Mr. Varner said he would like to know the source. Mr. Inks noted that the funds used were COIT and EDIT funds. Mr. Meteiver noted that legal is still investigating. 6. NEW BUSINESS A. South Bend Central Development Area (1) Proposal for professional services for tax appeal for the College Football Hall of Fame property. Mr. Relos noted that staff has solicited a proposal from Rick Pitts, an MAI Certified Indiana Appraiser, who appraised the College Football Hall of Fame (Hall) in 2010, to assist in the property tax appeal currently underway for this property. In December 2012 a petition was filed with the Assessor's Office to review the 2012 pay 2013 assessed value of the Hall. The assessed value for tax purposes is $6,022,600. In 2011 the Hall was taken through the disposition process with an average appraised value of $2,687,500. In May of this year staff received notice the assessed value for the Hall was not to be changed. Staff filed paperwork to appeal, and a hearing will be held before the Property Tax Board of Appeals. Staff is requesting the services of Rick Pitts, whose knowledge of the downtown market will be helpful to assist in this hearing. The attached proposal is for him to review related documentation and attend the hearing, with an hourly rate of $175 per hour. Staff requests approval of this Professional Services Agreement in a not -to- exceed amount of $1,750 (10 hours of work). Having the Hall's assessed value be in line with its market value will assist in the Hall's eventual disposition. Mr. Varner asked if it isn't the obligation of the Assessor's office to recognize the eventual sale price of the building as the assessed valuation. Mr. Inks responded that this question has been asked before and the response of the Assessor is that the sales price could be the basis of an appeal, but the reduction is not automatic. Mr. Varner thought that the use of Mr. Pitts to help appeal the assessed value seems redundant, since once the property has sold, the sales price should be the basis for an appeal. The $1,750 price is not a lot, but may not be necessary. The purchasers can appeal the AV South Bend Redevelopment Commission Regular Meeting — Thursday, June 13, 2013 6. NEW BUSINESS A. South Bend Central Development Area (1) continued... after the sale. Mr. Pitts' assistance through the appeal won't guarantee that the appeal will be successful. The biggest help in an appeal will be the ultimate sales price. Mr. Meteiver noted that those evaluations aren't effective until March I" the following year when the property is reassessed. We want to reduce the assessed value for the 2012 pay 2013 taxes. Ms. Schey asked for a status report on Community Investment's effort to find a new tenant for the former Football Hall of Fame. Mr. Relos responded that a call for offers went out nationally; responses are due by July 31, 2013. Staff will review those when they come in and make a report to the Commission. Mr. Meteiver noted that this property has already gone through the formal disposition process. This RFP process is an informal negotiation. Mr. Downes asked how the Assessor came up with an assessed value of $6 million when the appraised value we got was only $2.6 million. Mr. Relos responded that the Assessor has a handbook that values such things as square footage of the building when it was built. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission accepted the Proposal for professional services for tax appeal for the College Football Hall of Fame property for the scope of services proposed and a cost not to exceed $1750. (2) Agreement for Early Termination of Lease (Gates Automotive Corp. 410 W. Wayne). Mr. Relos noted that as part of the January 2012 final acquisition of the downtown Gates properties, the Commission assumed two leases. The first lease is for the Gates Service Center at 410 W. Wayne; the second lease is for the Gates Used Car Lot at 205 W. Western. Both leases were for an initial five year term, expiring July 31, 2013. Both leases grant the Lessee an option for three two -year renewals. On March 28th of this year, Gates gave notice of its intent to renew both leases. The leases include a clause that grants the Lessee early termination upon 90 days written notice. On May 20, written notice was received of the early termination of the Gates Service Center lease, which will terminate on August 31, 2013. South Bend Redevelopment Commission Regular Meeting — Thursday, June 13, 2013 6. NEW BUSINESS A. South Bend Central Development Area (2) continued... Upon a motion by Ms. Schey, seconded by Mr. Inks and unanimously carried, the Commission acknowledged the Agreement for Early Termination of Lease with Gates Automotive Corp. for property located at 410 W. Wayne. (3) Proposal for professional services for property located at 410 W. Wayne (Gates Services Center Replat). Mr. Relos noted staff solicited a proposal from Danch, Hamer & Associates to provide a Two -Lot Subdivision Replat for the Gates Service Center. The current configuration of the lot the service center is on does not encompass the entire building and includes no additional land for parking. As we move forward with the disposition process to sell or lease this building, we will need a marketable lot. This replat will provide that. The cost to prepare, file, record, and complete the subdivision process is $3,575. Staff requests approval. Upon a motion by Ms. Schey, seconded by Mr. Downes and unanimously carried, the Commission approved the Proposal for professional services for property located at 410 W. Wayne for the scope of services and fee proposed. (4) Staff update of the Hill and Colfax project. Mr. Kain noted that the Hill and Colfax site is a prime development site in the East Bank Village. The Redevelopment Commission purchased the site in 2003, and in 2008 staff engaged with a firm to develop a master plan for the East Bank Village. The Master Plan envisions the entire East Bank Village to be a neighborhood that is eclectic in nature as a mix of different uses ranging from retail commercial to high -tech small business. At the end of March staff issued a call for offers for the site, inviting proposals to develop the site as a mixed use project. Since then staff has received three strong proposals, reviewed them and selected one. Based on the criteria we've established for the site, the project had to be a mixed use project, the development had to have a positive impact on the surrounding neighborhood, existing businesses, school, and everything else that is happening in the neighborhood, and finally, it had to be compatible with the East Bank Village master plan. The development team that staff has chosen is Colfax Hill Partners, LLC, a family partnership, woman owned business. The partnership consists of, Audra Sieradzki, Kim Sieradzki, and David Sieradzki. Audra Sieradzki, whose background is in Commercial Real Estate, worked with a larger national firm out of Chicago, II., doing tenant advisory work; her responsibilities there included portfolio and strategy development, and implementation of those strategies, for international clients as large as Wrigley to small, private investors and everything in between. She and her husband returned to South Bend and have been here four years. Her South Bend Redevelopment Commission Regular Meeting — Thursday, June 13, 2013 6. NEW BUSINESS A. South Bend Central Development Area (4) continued... role in this partnership is overall development management as well as financial and feasibility analysis and leasing. Kim Sieradzki is an Architectural designer; after receiving her Master's in Architecture she and her husband, David, moved back to South Bend. Her specialty is in sustainable design. David Sieradzki was born and raised in South Bend, and worked in construction for Century Builders. He left South Bend to work on a variety of projects throughout different regions in the United States, such as several different types of mixed use developments, golf course developments, and single family houses. His role in this partnership is to bring construction experience and expertise. Mr. Kain noted that today's presentation is an introduction of the concept without the terms of the contract. In a subsequent meeting, staff will bring back a development with the terms, a purchase agreement detailing what the terms are, the responsibilities of the Commission as well and the responsibilities of the developer. Ms. Schey asked what the appraised value of the entire Colfax Hill lot is. Mr. Kain responded that the lot was appraised at $146,500. Ms. Schey asked if this was being divided. Mr. Kain responded that it will not be divided. Ms. Schey asked if a portion of the lot is going to the St. Joseph Grade School for parking. Mr. Kain responded that it will not. Staff entertained a discussion of that use because the school wanted to have that conversation, but it was never presented to the Redevelopment Commission because staff did not feel very comfortable with that use. Mr. Downes asked if there have been conversations with the neighbors, both business and residential, about this proposal. Mr. Kain responded that there has not been a formal meeting yet. After today's presentation, staff will be happy to engage with the neighborhood from this point on. Mr. Downes asked if there will be a public meeting or an individual meeting. Mr. Kain responded that staff can have a public meeting with the neighborhood association and invite the Colfax Hill Partners, LLC development team to present their idea. Mr. Downes noted that this proposal sounds terrific so far. Ms. Jones made a suggestion that when staff has the public meetings, it would be beneficial to pull out both rounds of charrettes that were done for the East Bank planning process to show the continuity with the overall plan. 7 South Bend Redevelopment Commission Regular Meeting — Thursday, June 13, 2013 6. NEW BUSINESS A. South Bend Central Development Area (4) continued... Mr. Varner asked whether the partnership really does see a desire for urban living and additional units in the downtown. Ms. Andrea Sieradzki responded that the development team definitely does. Mr. Kain noted that Laurie Volk of Zimmerman-Volk Associates has also identified that there is a strong market for young professionals to live in downtown South Bend. He had the Colfax -Hill Partnership meet with Laurie Volk as part of their evaluation. B. Airport Economic Development Area There was no business in the Airport Economic Development Area. C. West Washington- Chapin Development Area There was no business in the West Washington- Chapin Development Area. D. South Side Development Area There was no business in the South Side Development Area. 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. South Bend Redevelopment Commission Regular Meeting — Thursday, June 13, 2013 6. NEW BUSINESS (CONT.) G. Ratification of Services Contracts Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission ratified the Services Contracts approved by staff since the May 30, 2012 meeting. 7. PROGRESS REPORTS There were no Progress Reports 8. NEXT COMMISSION MEETING The Next Regular Meeting of the Redevelopment Commission is scheduled for 9:30 a.m., June 27, 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 10:03 a.m. Scott Ford, Director 0 Marcia I. Jones, President Commission Role in Contractor Service Contract Staff Member Provided Amount Transaction 5800 Park Place Acquisition Meridian Title work $200 Relos Title 5770 FJ Nimtz Acquisition Meridian Title Work $100 Relos Pkwy Title Enyart Motors Acquisition Meridian Title Work $200 Relos Title Sinco Pools Acquisition Meridian Title Work $200 Relos Title Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission ratified the Services Contracts approved by staff since the May 30, 2012 meeting. 7. PROGRESS REPORTS There were no Progress Reports 8. NEXT COMMISSION MEETING The Next Regular Meeting of the Redevelopment Commission is scheduled for 9:30 a.m., June 27, 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 10:03 a.m. Scott Ford, Director 0 Marcia I. Jones, President