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HomeMy WebLinkAbout08-15-13 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING Thursday, August 15, 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 Ms. Valeria Schey Sr., Secretary Mr. Greg Downes (part of meeting) Mr. Stan Wruble Mr. Don Inks 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 Dressel, Planner Mr. Michael Divita, Planner Ms. Sue Solmos Mr. Conrad Damian Mr. William Hollingsworth Mr. Mike Mecham, City Engineer Ms. Mo Miller Ms. Kelli Stopczynski, WSBT WSBT Photographer 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, July 25, 2013 Upon a motion by Ms. Schey, seconded by Mr. Varner and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Thursday, July 25, 2013. 1 South Bend Redevelopment Commission Regular Meeting — Thursday, August 15, 2013 3. APPROVAL OF CLAIMS 324 AIRPORT AREA DNA South Bend Tribune Sopko, Nussbaum, Inabnit & Kaczmarek Plews Shadley Racher &Braun LLP South Bend Water Works CA Studios Hull & Associates Inc. IDEM Tri- M- Construction, Inc. Jones Petrie Rafinski 420 FUND TIF DISTRICT -SBCDA GENERAL Meridian Title Corporation Jerome E Michaels, MAI R.E. Pitts & Associates, Inc. David Waszak Appraisals, Inc. Sopko, Nussbaum, Inabnit & Kaczmarek DTSB South Bend Water Works 422 TIF DISTRICT WEST WASHINGTON Reith -Riley Construction Co., 3,285.00 Survey Tech Ignition Park 75.37 Legal Notice 1,762.50 Legal Service 881.50 Environmental 2,246.08 401 N Bendix Dr. Guard / 401 N Bendix Dr. / 2721 Kenwood Ave 605.00 Studebaker /Oliver 3,177.28 MW & SVP Install Preparation Ignition Park 1,774.02 Personnel Costs 125.00 701 South 525.00 Ivy Tower 250.00 Search /Exam Fee RC /Title 1,075.00 Commercial Appraisal 5,450.00 Appraisal Srvc 228 Sycamore / 112 St. Louis / 331 -410 W. Wayne St. 4,600.00 Appraisal Srvc 228 Sycamore / 331 W. Wayne 550.00 Legal Services 20,265.00 Agreement for Services 127.35 701 E South St./514 Rush St. 96,060.25 Washington St. To LaSalle Ave. 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT DLZ Gibson Lewis LLC 6,110.00 Engineering 122,661.15 Skyway Plaza Window Replacement 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA #1 Lawson Fisher Associates 18,459.04 DLZ 13,240.00 1FNEW & Associates Inc. 1,257.70 DLZ 140.00 Reith -Riley Construction Co. 688,871.55 433 REDEVELOPMENT ADMINISTRATION GENERAL Faegre Baker Daniels 3,271.65 Main St /Lafayette Blvd Connector from Ireland Rd to Chippewa Rd Fellows St Fellows St Ireland Rd Main St /Lafayette Blvd Connector 2 South Bend Redevelopment Commission Regular Meeting — Thursday, August 15, 2013 3. APPROVAL OF CLAIMS (CONT.) Upon a motion by Mr. Varner, seconded by Mr. Schey and unanimously carried, the Commission approved the Claims submitted Thursday, August 15, 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. 3153 designating and declaring an amendment to the Redevelopment Plan for the South Bend Central Development Area. Mr. Dressel noted that staff requests Redevelopment Commission approval of Declaratory Resolution No. 3153, starting the process towards amendment of the South Bend Central Development Area (SBCDA) Development Plan. The primary purpose of these text amendments is to add language to an existing plan goal and create a new objective that emphasizes the importance of adding and expanding the range of downtown housing unit types within the SBCDA, particularly those that encourage the provision of affordable housing and live -work space for artists. Artist districts often serve as the catalyst for revitalization and are at the forefront of neighborhood development within downtowns. Additional amendments of lesser significance revise and modernize the plan introduction/history (both were initially written almost thirty years ago) and add time frames to existing plan objectives. Finally, minimal additions have been made to the plan goals and objectives adding language supporting "complete streets" for cyclists and mass transit users. The resolution does not include changes to the development area boundary. As a reminder, the declaratory resolution is the first of a four step process that also includes approval requests of the Area Plan Commission and Common Council. Staff expects to approach the Commission a second time within the next month or two to conclude the process by requesting approval of the confirming resolution. Ms. Schey asked if the SBCDA Development Plan shouldn't also include the Howard Park Neighborhood Plan. Mr. Dressel responded that it does. It is an attachment to the development plan. The attachments to the Plan were not copied for the packet because South Bend Redevelopment Commission Regular Meeting — Thursday, August 15, 2013 6. NEW BUSINESS A. South Bend Central Development Area (1) continued... there was no change being made to them. Mr. Dressel noted that the entire Development Plan can be found on the City of South Bend's website. Mr. Varner noted that it's all well and good to write a plan, but the reality is that development of property will be based on the market. Mr. Ford responded that this amendment expands the possibilities for development specifically because there is another part of the market that we hope to tap. This adds more flexibility. Mr. Bill Hollingsworth, Equal Development, noted that he is proposing to put the historic Hoffman Hotel, which is most commonly known as the North Western Mutual Building, into 45 -50 unit of affordable artist housing. The first floor will have a retail look, but will contain the leasing office, maintenance office, a small gallery, a soundproof music room for practicing, and a dark room. The 12`h floor has a wonderful view of both Notre Dame and the river walk. He intends to make that a studio. Mr. Downes asked if the billboard next to the hotel will be removed. Mr. Hollingsworth responded that the billboard on the south side of the building will be removed, but the billboard on the west side of the building has an historic, trendy look and will be kept. Mr. Hollingsworth noted that he intends to put $4M - $6M into the project. Mr. Wruble asked how this development will affect the LaSalle Hotel. Mr. Hollingsworth responded that it should complement the hotel. Artist housing is often a catalyst for other types of residential and will also drive retail to the LaSalle St. area. Ms. Schey asked for a brief explanation of how "artist" will be defined. Mr. Hollingsworth responded that in 2008 the United States President allowed, within fair housing, to have restrictive housing to artists. An Artist is defined by broad categories such as culinary artists to painters to photographers to anything that is an artistic endeavor. The limitations must be defined upfront as a part of their leasing strategy to avoid fair housing issues. Ms. Schey asked if there were certain income parameters as well. Mr. Hollingsworth responded that residents living there will have to make less than 60% of the area median income based on family size. Mr. Wruble asked what the dollar amount of the 60% median is. Mr. Hollingsworth responded that it changes every year; currently it is about $40,000 for a family of four. Mr. Varner asked if Mr. Hollingsworth might consider an agreement with the Morris Performing Arts Center for a certain number of rooms on ND football weekends because the Morris isn't able to book certain events those weekends because of the lack of hotel space. South Bend Redevelopment Commission Regular Meeting — Thursday, August 15, 2013 6. NEW BUSINESS A. South Bend Central Development Area (1) continued... Mr. Hollingsworth responded that he would consider that except for the restrictions of the program requiring a 1 -year lease and the income restrictions. Upon a motion by Ms. Schey, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3153 designating and declaring an amendment to the Development Plan for the South Bend Central Development Area which includes adding and expanding the range of Downtown Housing and types to include specific groups, to revise and modernize the plan which was written 30 years ago, add some time frames and to incorporate the recent discussion about complete streets. (2) Resolution No. 3154 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Hill & Colfax Drainage Improvements Project) Mr. Dressel noted that staff approached the Commission in June to present plans for development of the Commission -owned property on the northwest corner of Hill Street and Colfax Avenue as a mixed use building planned by Colfax Hill Partners, LLC. Prior to development, there's a need to address site drainage. The proposed project consists of eliminating an existing detention basin and drywell system on the site and providing a new detention storage facility, while maintaining the current outlet rate to the City drainage system. It is likely that the drywell structures in the adjacent parking lot are also connected to this detention basin. Abonmarche has submitted a written proposal to provide the following scope of services: • Performing a field survey /conducting utility locates • Preliminary engineering including providing a storage location and method options • Preparing construction documents and complete bid package • Providing bid period services including recommendation for contract award The proposed work plan calls for completion of services above within 5 weeks; start of the City of South Bend bid process in mid - September; and project construction commencing by mid - October. Staff requests approval of Resolution No. 3145 and Addendum to the Master Agency Agreement, in a not -to- exceed amount of $8,200. Mr. Downes asked if there is an estimate of the cost to relocate the drainage system. Mr. Ford hesitated to put a hard number out there, but did not think it would be a large number. Mr. Varner asked that if it is possible after the assessment if the detention base will be adequate or not. Mr. Mecham responded that it is adequate and works very well. This South Bend Redevelopment Commission Regular Meeting — Thursday, August 15, 2013 6. NEW BUSINESS A. South Bend Central Development Area (2) continued... advantage is that it takes a little piece of real estate that is valuable to that development. The idea is to either remove it or something else that provides the same function somewhere else. Upon a motion by Mr. Downes, seconded by Ms. Schey and unanimously carried, the Commission approved Resolution No. 3154 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Hill & Colfax Drainage Improvements Project). (3) Resolution No. 3149 approving the fair market value of property in the South Bend Central Development Area. (112 S. St. Louis St.) Mr. Relos noted that Resolution No. 3149 sets the fair market value for 112 S. St. Louis St., within the South Bend Central Development Area. The proposed fair market value of the property, as derived by two independent MAI appraisals, is $4,200. Staff requests approval of Resolution No. 3149. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3149 approving the fair market value of property in the South Bend Central Development Area. (112 S. St. Louis St.) (4) Bid Specifications and Design Considerations for property in the South Bend Central Development Area. (112 S. St. Louis St.) Mr. Relos noted that the Bid Specifications and Design Considerations are for the disposition of 112 S. St. Louis. The Bid Specifications outline the uses and development requirements that will be required for this site, which include: • All offers must meet the minimum price listed on the Offering Sheet • All proposals must conform to the existing zoning provisions set forth for the CBD as outlined in the South Bend Zoning Ordinance. • All proposals must include the basic reuse plan for the site and a project timeline detailing aspects of the site redevelopment and sited improvements. Emphasis will be placed on compatibility with the goals and objectives of the East Bank Redevelopment Area as well as the Development Plan for the South Bend Central Development Area. • Bidders are prohibited from using the property for speculation or landholding purposes. South Bend Redevelopment Commission Regular Meeting — Thursday, August 15, 2013 6. NEW BUSINESS A. South Bend Central Development Area (4) continued... Mr. Varner asked if the Bid Specifications and Design Considerations are certifying that this property is zoned appropriately or recognizing what the zoning is. Mr. Relos responded that they recognize what the zoning is. Upon a motion by Mr. Downes, seconded by Ms. Schey and unanimously carried, the Commission approved Bid Specifications and Design Considerations for property in the South Bend Central Development Area. (112 S. St. Louis St.) (5) Authorization to publish the Notice on Intended Disposition of Property with publication dates of August 23, 2013 and August 30, 2013 and Receipt of Bids at 9:00 a.m. on September 12, 2013. (112 S. St. Louis St.) Mr. Relos noted that the Notice of Intended Disposition of Property for 112 S. St. Louis, in the South Bend Central Development Area will be advertised in both the South Bend Tribune and the Tri- County News on August 23, 2013 and August 30, 2013. Staff requests authorization to publish this notice. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission authorized publication of the Notice on Intended Disposition of Property with publication dates of August 23, 2013 and August 30, 2013 with Receipt of Bids at 9:00 a.m. on September 13, 2013. (112 S. St. Louis St.) (6) Resolution No. 3150 approving the fair market value of property in the South Bend Central Development Area. (228 Sycamore St.) Mr. Relos noted that Resolution No. 3150 sets the fair market value for 228 Sycamore St., within the South Bend Central Development Area at $33,500, that number being derived by averaging two independent MAI appraisals. Staff requests approval of Resolution No. 3150. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3150 approving the fair market value of property in the South Bend Central Development Area. (228 Sycamore St.) (7) Bid Specifications and Design Considerations for property in the South Bend Central Development Area. (228 Sycamore St.) Mr. Relos noted that the Bid Specifications and Design Considerations are for the disposition of 228 Sycamore St. The Bid Specifications outline the uses and development requirements that will be required for this site. South Bend Redevelopment Commission Regular Meeting — Thursday, August 15, 2013 6. NEW BUSINESS A. South Bend Central Development Area (7) continued... • All offers must meet the minimum price listed on the Offering Sheet • All proposals must conform to the existing zoning provisions set forth for the CBD as outlined in the South Bend Zoning Ordinance. • All proposals must include the basic reuse plan for the site and a project timeline detailing aspects of the site redevelopment and sited improvements. Emphasis will be placed on compatibility with the goals and objectives of the East Bank Redevelopment Area as well as the Development Plan for the South Bend Central Development Area. • Bidders are prohibited from using the property for speculation or landholding purposes. Upon a motion by Mr. Downes, seconded by Ms. Schey and unanimously carried, the Commission approved Bid Specifications and Design Considerations for property in the South Bend Central Development Area. (228 Sycamore St.) (8) Authorization to publish the Notice of Intended Disposition of Property with publication dates of August 23, 2013 and August 30, 2013 and Receipt of Bids at 9:00 a.m. on September 12, 2013. (228 Sycamore St.) Mr. Relos noted that the Notice of Intended Disposition of Property (Notice) for 228 Sycamore St., in the South Bend Central Development Area will be advertised in both the South Bend Tribune and the Tri- County News on August 23, 2013 and August 30, 2013. Staff requests authorization to publish this notice. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission authorized publication of the Notice of Intended Disposition of Property with publication dates of August 23, 2013 and August 30, 2013 with Receipt of Bids at 9:00 a.m. on September 13, 2013. (228 Sycamore St.) (9) Resolution No. 3151 approving the fair market value of property in the South Bend Central Development Area. (331 -410 W. Wayne St.) Mr. Relos noted that Resolution No. 3151 sets the fair market value for 331 -410 W. Wayne St., within the South Bend Central Development Area at $227,500 or $4.88 per sq ft., if leased. The fair market value of the property was established as an average of two independent MAI appraisals. Staff requests the approval of Resolution No. 3151. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3151 approving the fair market value of property in the South Bend Central Development Area. (331 -410 W. Wayne St.) South Bend Redevelopment Commission Regular Meeting — Thursday, August 15, 2013 6. NEW BUSINESS A. South Bend Central Development Area (10) Bid Specifications and Design Considerations for property in the South Bend Central Development Area. (331410 W. Wayne St.) Mr. Reins noted that the Bid Specifications and Design Considerations are for the disposition of 331 -410 W. Wayne St. The Bid Specifications outline the uses and development requirements that will be required for this site. • All offers must meet the minimum price listed on the Offering Sheet • All proposals must conform to the existing zoning provisions set forth for the GB zoning designation as outlined in the South Bend Zoning Ordinance. • All proposals must include the basic reuse plan for the site and a project timeline detailing aspects of the site redevelopment and sited improvements. Emphasis will be placed on compatibility with the goals and objectives of the Coveleski Redevelopment Area as well as the Development Plan for the South Bend Central Development Area. • Bidders are prohibited from using the property for speculation or landholding purposes. Upon a motion by Mr. Downes, seconded by Mr. Schey and unanimously carried, the Commission approved Bid Specifications and Design Considerations for property in the South Bend Central Development Area. (331 -410 W. Wayne St.) (11) Authorization to publish the Notice of Intended Disposition of Property with publication dates of August 23, 2013 and August 30, 2013 and Receipt of Bids at 9:00 a.m. on September 12, 2013. (331 -410 W. Wayne St.) Mr. Relos noted that the Notice of Intended Disposition of Property (Notice) is for 331 -410 W. Wayne St., in the South Bend Central Development Area will be advertised in both the South Bend Tribune and the Tri- County News on August 23, 2013 and August 30, 2013. Staff requests approval of this Notice and the Request to Advertise, for the eventual disposition of this property. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission authorized publication of the Notice of Intended Disposition of Property with publication dates of August 23, 2013 and August 30, 2013 with Receipt of Bids at 9:00 a.m. on September 13, 2013. (331 -410 W. Wayne St.) (12) Contract for Land Sale of Land for Monroe Park properties. Mr. Relos noted that over the past two years, 15 properties that once were leased through the Housing Development Corporation (HDC), and owned by the Redevelopment Authority, have been transferred from the Authority to the Commission. This transfer occurred because South Bend Redevelopment Commission Regular Meeting — Thursday, August 15, 2013 6. NEW BUSINESS A. South Bend Central Development Area (12) continued... HDC is no longer in operation, and to facilitate the disposition of these twelve houses and three vacant lots. Houses that were unoccupied when HDC ceased operation have remained unoccupied. All were appraised in 2011. Since the 2011 appraisals, some have been broken into and vandalized, have developed leaking roofs and, overall, have larger deferred maintenance issues. For disposition purposes, these 15 properties were split into two groups. The first group consisted of five houses, with the last being sold this past May. These five houses had an average appraised value of $20,400 and an average sales price of $7,040. All five houses were listed with a Realtor and received little to no interest. The remaining seven houses have an average appraised value of $25,250. Two parties expressed interest in these seven houses and three vacant lots, one offering $25,000, with Mr. Berger's offer of $50,400 being the second. Mr. Berger's offer equates to an average of $7,200 per house. Mr. Berger is a 40 -year resident of South Bend, has experience in the construction industry and working with at -risk populations, assisting individuals to obtain employment and housing opportunities. Upon taking possession of these properties, Mr. Berger will have a person living on site providing maintenance and security services. Since the sale of these properties to a private investor will place them back on the tax rolls, provides for a minimum $80,000 investment into them, and has received the support of the Monroe Park Neighborhood Association, staff requests approval of this Contract for Sale. Ms. Schey asked if the Housing Development Corporation (HDC) is owned by the City of South Bend. Mr. Inks responded that the Housing Development Corporation was an independent non -profit organization, which was sponsored by the city. Ms. Schey asked if these properties were acquired through federal grants owners. Mr. Inks responded that in this case no. These properties were acquired through bond proceeds since they were owned by the Redevelopment Authority which is their only source of income. The properties were then leased to the HDC for use in their low income housing program. Over the years, federal money went into these properties to maintain them. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carved, the Commission approved the Contract for Land Sale of Land for Monroe Park properties. 10 South Bend Redevelopment Commission Regular Meeting — Thursday, August 15, 2013 6. NEW BUSINESS B. Airport Economic Development Area (1) Proposal for survey services (Subdivision of SW corner Sheridan and Voorde) Mr. Relos noted that staff solicited a professional services proposal from Danch, Hamer & Associates to provide subdivision services for the southwest comer of Sheridan & Voorde. This lot is currently owned by the Airport Authority and contains a city -used retention basin on its southern half. Because this retention basin is used by the City for surrounding drainage, it should be owned and operated by the Board of Public Works (BPW). Upon completion of this lot being replatted, the Airport Authority will deed the basin to the BPW. The northern portion will then be available for sale as a buildable site, which does have an interested party. This proposal will provide survey and replat services to prepare a One Lot/ One Outlot Subdivision Replat for this parcel by splitting off the non - buildable section (retention basin) from the buildable portion. The cost for the preparation of the Subdivision Replat, all required paper work, setting of property corners, attendance at required Plat Committee meetings, filing and recording fees is $3,650. The Airport Authority has agreed to pay half this cost, leaving the Commission's cost at $1,825. Staff requests approval of the proposal. Upon a motion by Ms. Schey, seconded by Mr. Downes and unanimously carried, the Commission approved the Proposal for survey services (Subdivision of SW comer Sheridan and Voorde) 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. 3152 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Bowen St. Sidewalk Project) Mr. Relos noted that Resolution No. 3152 approves an Agency Agreement for a Professional Services Agreement with DLZ for Right of Way (ROW) Engineering, Staking, and Acquisition Services to complete the installation of a sidewalk along the south side of Bowen Street from Miami, west into the Erskine Plaza Shopping Center in the South Side Development Area. In recent years, an effort has been made to upgrade and connect the sidewalk system in the south side shopping district. As this area has grown, certain areas have had sidewalks 11 South Bend Redevelopment Commission Regular Meeting — Thursday, August 15, 2013 6. NEW BUSINESS D. South Side Development Area (1) continued... installed while other areas have not. The Commission has approved Engineering and ROW acquisition services for intersection improvements at High and Ireland, which includes the construction of a section of sidewalk going east and connecting to the current sidewalk that eventually connects to the intersection of Ireland and Miami. The Commission has also approved Engineering and ROW acquisition services for the construction of sidewalk along the east side of Miami north of Ireland. This, too, will connect existing sidewalks in this area. In preparation to bid these three projects as one package this spring, the services provided in this agreement will allow the acquisition of the ROW needed along Bowen Street, provide necessary legal descriptions, plat work, and surveys. Staff requests approval of Resolution No. 3152 and Addendum to the Master Agency Agreement in a not -to- exceed amount of $34,280. Ms. Jones noted that this issue has been discussed at length several years ago and some acquisitions were made because this is an area with high pedestrian traffic. Mr. Relos noted that former Commissioner Nancy King requested this sidewalk because she used to live in that area noticed the danger of pedestrians walking in the street and drives. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3152 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Bowen St. Sidewalk Project) 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. 12 South Bend Redevelopment Commission Regular Meeting — Thursday, August 15, 2013 6. NEW BUSINESS (CONT.) G. Ratification of Services Contracts Mr. Downes made a motion to ratify the services contracts and purchase agreement listed above. Ms. Schey asked for a brief update on the 1509 Kendall acquisition. Mr. Relos responded that the mortgage on the property is "upside down." The Redevelopment Commission approved the short sale agreement in May 2013. Since then, staff has had to rewrite the purchase agreement paperwork for the short sale by changing the date (due to being past the closing date) and removing the "S." on the address which read, "1509 S. Kendall." The mortgage company's paperwork reads "1509 Kendall." Ms. Schey said that she expected there to be some additional discussion regarding this property. If the Commission approves the purchase agreement as requested today, what would be the impact of that? Mr. Relos responded that there won't be any impact. Staff already has two signed contracts with the owners. Ms. Schey asked if the signed contracts are for the agreed upon amount. Mr. Relos responded that they are. The Commission approved the first dollar amount November 2011; then staff had the purchase agreement signed by the owners in May 2012. 13 Commission Role in Transaction Contractor Service Provided Contract Amount Staff Member 4627 Miami Acquisition Meridian Title Title work $150 Relos 4711 Miami Acquisition Meridian Title Title work $100 Relos Hill and Colfax lot Disposition Meridian Title Title work 300 Kain 228 Sycamore Dis osition WaszakAppraisals Appraisal $1,700 Relos 228 Sycamore Dis osition R.E. Pitts Appraisal $1,650 Relos 331 W. Wayne Disposition I Waszak Appraisals Appraisal 1 $2,900 Relos 331 -410 W. Wayne Gates Auto Service Disposition R.E. Pitts Appraisal $2,350 Relos 112 S. St. Louis Disposition Jerome E. Michaels Appraisal $1,075 Relos 112 S. St. Louis Disposition R.E. Pitts Appraisal $1,450 Relos 112 S. St. Louis Disposition Meridian Title Title work $150 Jennings 331 -410 W. Wayne Gates Auto Service Disposition Meridian Title Title work $200 Jennings 228 Sycamore Dis osition Meridian Title Title work $100 Jennings 1509 Kendall Acquisition Changes to Purchase A Bement Relos Mr. Downes made a motion to ratify the services contracts and purchase agreement listed above. Ms. Schey asked for a brief update on the 1509 Kendall acquisition. Mr. Relos responded that the mortgage on the property is "upside down." The Redevelopment Commission approved the short sale agreement in May 2013. Since then, staff has had to rewrite the purchase agreement paperwork for the short sale by changing the date (due to being past the closing date) and removing the "S." on the address which read, "1509 S. Kendall." The mortgage company's paperwork reads "1509 Kendall." Ms. Schey said that she expected there to be some additional discussion regarding this property. If the Commission approves the purchase agreement as requested today, what would be the impact of that? Mr. Relos responded that there won't be any impact. Staff already has two signed contracts with the owners. Ms. Schey asked if the signed contracts are for the agreed upon amount. Mr. Relos responded that they are. The Commission approved the first dollar amount November 2011; then staff had the purchase agreement signed by the owners in May 2012. 13 South Bend Redevelopment Commission Regular Meeting — Thursday, August 15, 2013 6. NEW BUSINESS (CONT.) G. Ratification of Services Contracts Ms. Schey asked if the Commission would table ratification of 1509 Kendall until its next meeting, will this have any detrimental effects to the negotiations. Mr. Meteiver responded that the mortgage company has been difficult to work with from the beginning of this acquisition. A delay at this point might cause them to put this on the back burner. If the Commission defers this contract to the next Redevelopment Commission meeting, we will be getting close to the final deadline again which could create additional problems. If anything, these changes will facilitate the acquisition of the property rather than delay it. He recommended not tabling the item. Ms. Schey asked to table the ratification of this address due to the family (owner) filing a complaint with the Council. There are some issues that still need to be addressed. She clarified that we will be up against the deadline, but will not be past it if we table? Mr. Meteiver responded that that would depend on how quickly the bank could turn things around again. If we defer action here, that may be a signal that the bank can defer action from their end and we will be late for the purchase agreement's deadline. As a courtesy to the family who did come before Council on Monday, Ms. Schey asked that the item be tabled until the next meeting. Mr. Meteiver asked what the family's concerns are. Ms. Schey responded that they have a number of concerns. Mr. Relos noted that staff could hear at any moment that with these changes to the agreement, the agreement has been approved. This acquisition should have been closed some time ago. The mortgage processor has been very difficult, and actually, the family has an attorney that Mr. Relos is working through who is working with the mortgage processor. Mr. Downes asked if the Council has any authority over this transaction. Mr. Relos responded that it does not. The authority falls to the Commission and it's been approved by the Redevelopment Commission previously. Ms. Schey noted that as a member of the Council that answers to the people of South Bend, there is a responsibility when citizens come before us. Regardless of one's opinion whether TIF dollars are, in fact, the money of the tax payers the money that is spent is public money. The residents have asked for further clarification on this matter. Therefore, Ms. Schey asked again that ratification of the purchase agreement for 1509 Kendall be tabled until the next Commission meeting. Mr. Varner clarified that the Commission essentially had no contract after the purchase agreement expired. Mr. Meteiver responded that either party to a contract can terminate the contract based on the closing not taking place within 30 days. Neither party took that step, so we still have a valid contract. 14 South Bend Redevelopment Commission Regular Meeting — Thursday, August 15, 2013 6. NEW BUSINESS (CONT.) G. Ratification of Services Contracts Mr. Inks asked for clarification of the issue. Does the owner no longer want to sell, or are they asking for a larger price? Mr. Relos responded that the owner is asking for more money. Ms. Schey responded that the property next to them (1505 Kendall, which is a business) was sold to the Redevelopment Commission for $350,000. The Commission in November 2011 offered $59,100 for the home next to that business. Mr. Varner noted that this is one of those things that, once it's done, will haunt anybody that is involved unless the whole story is put out there for anyone who's interested to understand. He's asked Dave "have you got the worksheets, have you got the explanation, have you justification for the price that the owners of 1509 S. Kendall agreed to ?" He doesn't mind delaying the vote on this if people can get their questions answered. Mr. Relos noted that the family does know how the purchase price was arrived at. From staff research back on 2011, the mortgage was two years past due and is probably further past due now. There are delinquent taxes and at least $12,000 in liens from the various children who have inherited the property. The Commission is already going well over the appraised value to pay those things off. Mr. Downes did not like the precedent that would be set by reconsidering the price for this property: if you make an agreement with the Redevelopment Commission, then you decide because of some later, related deal that you didn't get a good enough deal, then you are going to go to the Common Council who had no authority over the transaction and complain about it. If they wanted to appeal the deal, they should have come to the Redevelopment Commission. Ms. Schey pointed out that many members of the public don't understand the difference between the elected and appointed bodies and what those bodies are charged with. She believes it is the responsibility of the members of those bodies to work with the residents to help clarify those roles. Mr. Relos noted that ratifying these purchase agreement changes doesn't stop any of that from happening. The changes are so the mortgage processor can decide whether they are going to accept the short sale paperwork or not. They might come back and say that, after all, they don't want to accept the short sale paperwork. Then we would be back at square one. Ms. Schey asked when the purchase agreement needs to be signed. Mr. Meteiver responded that this is a ratification of action already taken. The family is represented by a lawyer and should be able to get most of their questions answered by the lawyer rather than running to the Common Council in an attempt to circumvent the Commission's process. Mr. Relos noted that he has received no word from the family or their lawyer about any displeasure. 15 South Bend Redevelopment Commission Regular Meeting — Thursday, August 15, 2013 6. NEW BUSINESS (CONT.) G. Ratification of Services Contracts Ms. Schey made a motion to table ratification of the purchase agreement for 1509 Kendall and to ratify the remainder of the service contracts. Mr. Vamer seconded. The motion failed on a vote of two to three. Ms. Jones, Mr. Downes, and Mr. Inks were opposed. Mr. Downes made a motion to ratify the Services Contracts and the Purchase Agreement for 1509 Kendall which were approved by staff since the July 25, 2013 meeting. Mr. Inks seconded. The motion carried on a vote of four to two. Mr. Varner and Ms. Schey were opposed. 7. PROGRESS REPORTS A. Update on the RFP process for corridors on Lincolnway West and Western Mr. Divita noted that on behalf of the Redevelopment Commission the city has issued a Request for Proposals for a contractor to prepare a market based strategic revitalization plan for the Lincolnway West and Western corridors. The plan would address activities and market changes since the last plans for the corridors were completed in 1999. The effort would support the economic vitality by making our streets work for us. The current and projected market conditions will be analyzed to help identify priority areas and activities for private and public investment. We would expect the plan to include business development, land use, design, and streetscape elements. The RFP itself was issued last Friday, August 9, 2013, with proposals due back by September 13, 2013. The RFP has been made widely available, including on the City's website. To advance the planning process the Commission will be asked to award the consultant a contract. Tentatively that would happen in October. The South Bend Urban Enterprise Association (UEA) has graciously agreed to provide funding of up to $150,000 toward cost of the plan development. TIF might be used to supplement those funds, but because only a portion of the corridors fall within the existing TIF boundaries, only a minority of the cost of the plan development would be borne through TIF funding. At an upcoming meeting, staff will present a contract between the Redevelopment Commission and UEA for that funding with the specific terms to be worked out between now and then. Mr. Downes asked if the RFP asks for two separate plans for the two corridors or is it one plan covering both corridors. Mr. Divita responded that it will be one plan covering two corridors. 8. NEXT COMMISSION MEETING The Next Regular Meeting of the Redevelopment Commission is scheduled for Thursday, August 29, 2013 at 9:30 a.m. 16 South Bend Redevelopment Commission Regular Meeting — Thursday, August 15, 2013 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, the meeting was adjourned at 10:29 a.m. 1 kord, DirectW 17 Marcia I. Jones, 6Wident