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HomeMy WebLinkAbout08-01-08 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 1, 2008 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Mr. Karl King, Vice President Mr. Hardie Blake, Jr. Dr. David Varner Ms. Ann Rosen Members Absent: Mr. Greg Downes, Secretary Legal Counsel: Mr. Charles S. Leone, Esq. Mr. Lawrence Meteiver, Esq. Redevelopment Staf£ Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Ms. Jennifer Laurent, Economic Development Specialist Mr. Nicholas Witwer, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mr. Tom Price, Mayor's Office Ms. Jamie Loo, South Bend Tribune Ms. Rita Kopala Ms. GlendaRae Hernandez Ms. Mindy Risser Mr. Mark Seaman Ms. Jones introduced Ms. Ann Rosen, newly appointed member of the Commission. HEA 1001 added a representative of the local school board to each Redevelopment Commission. Ms. Rosen is a member of the South Bend Community School Corporation, appointed to the Commission as anon-voting member. 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, July 18, 2008. Mr. Varner noted that on the bottom of Page 10, he South Bend Redevelopment Commission Regular Meeting -August 1, 2008 would like the Minutes to say that Blackthorn Golf Course should be sold, not that "we should move on." Mr. Varner also asked staff for a map of the defined MIND area. Mr. Witwer will provide that. Upon a motion by Mr. King, seconded by Mr. Varner and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, July 18, 2008 as amended. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, JULY 18, 2008, AS AMENDED Redevelopment Commission Claims submitted August 1, 2008 for approval. 305 FUND SBCDA BOND SBD Reprographics 218.48 Michigan St Improvements 324 AIRPORT AEDA Sopko, Nussbaum, Inabnit & Kaczmarek 4,737.29 Legal Service Park Department 6,315.50 Seasonal Property Maint. Wightman Petrie 1,871.63 Former EMI Building 2060 S Main Hull & Associates, Inc. 355.39 Eckler-Lahey and South Bend Foundry Notice To Bibbers Studebaker Corridor Area Tri County News 57.65 A South 420 FUND TIF DISTRICT-SBCDA GENERAL Sopko, Nussbaum, Inabnit & Kaczmarek 3,097.46 Legal Service CB Richard Ellis 747.12 Management Fee & General Maintenance Ampco System Parking 1,575.96 St. Joseph St. Surface Lot /Main ST Lot Electric Service for LaSalle Hote1237 N Indiana Michigan Power 187.88 Michigan Circle Lumber, Inc. 2.13 Weed Killer Park Department 804.00 Seasonal Property Maint. Wightman Petrie 2,300.00 300 & 400 Blocks of W Western Ave Wightman Petrie 5,525.00 Gates North Block Boundary Survey Wightman Petrie 3577.5 Demolition of Gates Chevy World Building Abonmarche 1,500.00 St. Joseph St Parking Lot 2 South Bend Redevelopment Commission Regular Meeting -August 1, 2008 Jerome E. Michaels, MAI Rose Pest Solutions Schindeler Elevator Corp 2,350.00 Fred's Transmission Pest Control for LaSalle Hote1237 N 93.00 Michigan 134.91 LaSalle Hotel inspection 422 FUND WEST WASHINGTON Sopko, Nussbaum, Inabnit & Kaczmarek 202.45 Park Department 186.00 430 FUND SOUTH SIDE DEVELOPMENT Park Department 148.00 Total $ 35,987.35 Mr. Varner asked if staff has received any communication from the developer interested in the LaSalle Hotel Ms. Laurent responded that staff has been in contact with him, and plans to have a Contract for Sale of Land on the next Commission agenda. Upon a motion by Mr. King, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted August 1, 2008, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS A. Airport Economic Development Area (1) Commission authorization requested to submit Certified Technology Park Technology Development Grant Fund Application. Mr. Inks noted that this is a grant application for up to $4M, $2M for operating and $2M for capital for the Certified Technology Park. Legal Service Seasonal Property Maint. Seasonal Property Maint. COMMISSION APPROVED THE CLAIMS SUBMITTED AUGUST 1, 2008, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS 3 South Bend Redevelopment Commission Regular Meeting -August 1, 2008 5. OLD BUSINESS (CONT.) A. Airport Economic Development Area (1) continued... Mr. Inks noted that staff is continuing to have discussions with IEDC and to make progress, but we're not ready to move forward with the grant application yet. He asked that it be tabled until the August 15 meeting. Ms. Jones asked whether IDEC is the holdup. Mr. Inks responded that the city has been presented with some options and we're trying to figure out which way we should go. The grant request is being reviewed at the same time IEDC reviews the application. IEDC is structuring it as they review it. Mr. Varner asked whether the choices affect the timeline, or the distribution of the dollars. Mr. Inks said it could affect either one. That's what staff is trying to weigh. Upon a motion by Mr. King, seconded by COMMISSION TASEED ITEM 5.A(1) Mr. Blake and unanimously carried, the Commission tabled Item S.A(1). 6. NEW BUSINESS A. South Bend Central Development Area (1) Commission approval requested for Resolution No. 2480 approving the fair market value of property in the South Bend Central Development Area (118 N. Main Street, JMS Parking Lot) Ms. Laurent noted that on June 3, the Commission approved an option agreement for purchase of 118 N. Main St., the surface 4 South Bend Redevelopment Commission Regular Meeting -August 1, 2008 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (1) continued... parking lot owned by Mary Coyne Investments, adjacent to the historic JMS Building. The Commission's interest in the property is related to the parking assembly for a proposed development of residential condominiums in the 7MS building. The Commission has agreed to secure an option on the property and dispose of it through the public disposition process, setting an offering price equal to the Commission's negotiated purchase price. The price the Commission has negotiated with Mary Coyne is $200,000, thus Resolution No. 2480 sets the offering price for disposition at $200,000. Mr. Inks noted that by law the Commission is not allowed to set the offering price lower than the average of two appraisals of the property. In this case, the average is $84,000. However, the Commission may set it higher than that amount. Since the Commission negotiated a price with the sellers of $200,000, we are making that the offering price. Staff recommends approval. Mr. Varner asked if there was any chance the Commission could end up owning the lot and not have a buyer. Ms. Laurent responded that the Option won't be exercised until closing with the owner of the JMS building. The intent of the Option is to protect the city. Upon a motion by Mr. King, seconded by COMMISSION APPROVED RESOLUTION No. 2480 Mr. Varner and unanimously carried, the APPROVING THE EAIR MARxET vALUE of COmmisslOn apprOVed ReSOlutlOn NO. 2480 PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (118 N. MAIN STREET, approving the fair market value of property JN1S PARxING LOT) South Bend Redevelopment Commission Regular Meeting -August 1, 2008 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (1) continued... in the South Bend Central Development Area. (118 N. Main Street, JMS parking lot) (2) Commission approval requested for Bid Specifications and Design Considerations for property located at 118 N. Main Street in the South Bend Central Development Area. Ms. Laurent noted that the Bid Specifications outline reuse as a parking lot in support of the JMS building. Mr. Leone noted that the Legal Dept. has some concerns related to the way the Bid Specifications are written. (1) Since the Commission does not yet own the property, the Bid Specifications need to reflect the fact that the offering is contingent on the Commission exercising its option to purchase the property. (2) There is a reference in the specifications of a bid being made by a trust. The Bid Specifications need to identify the authority of the trustee to engage in the transaction. Mr. Leone said the Bid Specifications could be approved with those changes. Upon a motion by Mr. King, seconded by Mr. Blake and unanimously carried, the Commission approved the Bid Specifications and Design Considerations as amended for property located at 118 N. Main Street in the South Bend Central Development Area. COMMISSION APPROVED THE BID SPECIFICATIONS AND DESIGN CONSIDERATIONS AS AMENDED FOR PROPERTY LOCATED AT 118 N. MAIN STREET IN THE SOUTH BEND CENTRAL DEVELOPMENT UREA 6 South Bend Redevelopment Commission Regular Meeting -August 1, 2008 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (3) Commission authorization requested to publish Notice of Intended sale of property in the South Bend Central Development Area with publication dates of August 8 and August 15, 2008 and receipt of bids at 10:00 a.m., September 5, 2008. (118 N. Main Street, JMS Parking Lot) Upon a motion by Mr. King, seconded by Mr. Varner and unanimously carried, the Commission authorized publication of the Notice of Intended sale of property in the South Bend Central Development Area with publication dates of August 8 and August 15, 2008 and receipt of bids at 10:00 a.m., September 5, 2008. (118 N. Main Street, JMS Parking Lot) (4) Staff report on updated Three-Year Strategy for the South Bend Central Development Area, including South Bend Regional Museum of Art Sculpture Garden. Item 6.A(4) was withdrawn at this time by staff. (5) Commission approval requested for Waiver of Prior Delivery of Disclosure Document Required by LC. 13-25-3-2(b). Mr. Schalliol noted that staff intended to purchase the Gates building at 401 S. Lafayette, closing on September 2. A general agreement was made between all parties to move the closing on the property from September 2 to August 5 because the new building on the south side is ready for COMMISSION AUTHORIZED PUBLICATION OF THE NOTICE OF INTENDED SALE OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA WITH PUBLICATION DATES OF AUGUST 8 AND AUGUST 15, 2008 AND RECEIPT OF BIDS AT 10:00 A.M., SEPTEMBER 5, 2008. (118 N. MAIN STREET, JMS PARKING LOT ITEM 6.A(4) WAS WITHDRAWN BY STAFF 7 South Bend Redevelopment Commission Regular Meeting -August 1, 2008 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (5) continued... move-in. The seller is required to deliver to the Commission a disclosure document on a form prescribed by IDEM, relating to the underground storage tank on the site. This document is also to be recorded and filed with IDEM_ This must be done 30 days prior to closing, unless the buyer waives the deadline. We wish to waive the deadline and proceed to closing. Staff also requests authorization for Don Inks to sign the waiver once the disclosure document has been reviewed and approved by our environmental consultants. Mr. Varner asked if the city incurs any additional liability due to the waiver. Mr. Schalliol responded that it does not. Upon a motion by Mr. Varner, seconded by Mr. Blake and unanimously carried, the Commission approved the Waiver of Prior Delivery of Disclosure Document Required by LC. 13-25-3-2(b) and authorized Don Inks to sign the waiver once the disclosure document has been reviewed and approved by our environmental consultants. (6) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Plan for reuse of Franklin & Jefferson) Mr. Inks asked that Item 6.A(6) be tabled. Upon a motion by Mr. King, seconded by Mr. Blake and unanimously carried, the COMMISSION APPROVED THE WAIVER OF PRIOR DELIVERY OF DISCLOSURE DOCUMENT REQUIRED BY LC. 13-25-3-2(B) AND AUTHORIZED DON INKS TO SIGN THE WAIVER ONCE THE DISCLOSURE DOCUMENT HAS BEEN REVIEWED AND APPROVED BY OUR ENVIRONMENTAL CONSULTANTS COMMISSION TABLED ITEM 6.A(6~ UNTIL FURTHER NOTICE South Bend Redevelopment Commission Regular Meeting -August 1, 2008 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (6) continued... Commission tabled Item 6.A(6) until further notice. (7) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Plan for two-way traffic on William and Lafayette) Mr. Inks asked that Item 6.A(7) be tabled. Upon a motion by Mr. King, seconded by Mr. Blake and unanimously carried, the Commission tabled Item 6.A(7) until further notice. (8) Commission approval requested for Resolution No. 2481 related to acquisition of property in the South Bend Central Development Area. (Disposition of SW corner of Wayne & William) Mr. Inks asked that Item 6.A(8) be tabled. Upon a motion by Mr. King, seconded by Mr. Blake and unanimously carried, the Commission tabled Item 6.A(8) until further notice. (9) Commission approval requested for Resolution No. 2482 related to acquisition of property in the South Bend Central Development Area. (319 S. William) Mr. Inks asked that Item 6.A(9) be tabled. 6. NEW BUSINESS (CONT.) COMMISSION TABLED ITEM 6.A(7) UNTIL FURTHER NOTICE COMMISSION TABLED ITEM 6.A(8) UNTIL FURTHER NOTICE 9 South Bend Redevelopment Commission Regular Meeting -August 1, 2008 A. South Bend Central Development Area (9) continued... Upon a motion by Mr. King, seconded by Mr. Blake and unanimously carried, the Commission tabled Item 6.A(9) until further notice. B. Airport Economic Development Area (1) Commission approval requested for Resolution No. 2479 setting the fair reuse value of land in the Airport Economic Development Area. (Lot 5 Ameritech Drive) Mr. Leone noted that there is a Substitute Resolution No. 2479 which includes the amount of the offering price. Mr. Witwer noted that Resolution No. 2479 sets the offering price of Lot 5, Ameritech Drive. Lot 5 is currently used for retention in the Airport Economic Development Area. Only about one third of the lot is actually needed for retention. There have been three parties interested in developing a portion of the lot. Staff feels this would be a good time to dispose of the unneeded portion. Mr. Witwer noted that the offering price has been set as the average of two independent appraisers at $182,500. Mr. Varner asked the size of the lot. Mr. Witwer responded that it is 3.5 acres. Mr. Varner asked if the offering price is similar to the sale price of other retail land in the area. Mr. Witwer said that it is. COMMISSION TABLED ITEM 6.A(9~ UNTIL FURTHER NOTICE 10 South Bend Redevelopment Commission Regular Meeting -August 1, 2008 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (1) continued... Mr. Varner asked if the interested parties are new businesses or expanding businesses. Mr. Witwer responded the business is new, with the possibility of some expansion. Upon a motion by Mr. Varner, seconded by Mr. King and unanimously carried, the Commission approved Substitute Resolution No. 2479 setting the fair reuse value of land in the Airport Economic Development Area. (Lot 5 Ameritech Drive) (2) Commission approval requested for Bid Specifications and Design Considerations for property located at Lot 5 Ameritech Drive in the Airport Economic Development Area. Mr. Witwer reviewed the Bid Specifications. Bids must be for the entire site. Applicants are prohibited from acquiring the property solely for speculative or holding purposes. Proposals must meet current code and zoning requirements of the A3, Mixed Use designation. The Commission encourages proposals for mixed use which combine elements of multi-family residential, commercial retail, commercial office, or entertainment. The Commission will weigh how a proposal will positively or negatively impact existing surrounding businesses and traffic. Upon a motion by Mr. Varner, seconded by Mr. King and unanimously carried, the Commission approved the Bid Specifications and Design Considerations for property 11 COMMISSION APPROVED SUBSTITUTE RESOLUTION NO. 2479 SETTING THE FAIR REUSE VALUE OF LAND IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (LOT 5 AMERITECH DRIVE COMMISSION APPROVED THE BID SPECIFICATIONS AND DESIGN CONSIDERATIONS FOR PROPERTY LOCATED AT LOT 5 AMERITECH DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting -August 1, 2008 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (2) continued... located at Lot 5 Ameritech Drive in the Airport Economic Development Area. (3) Commission authorization requested to publish Notice of Intended sale of property in the Airport Economic Development Area with publication dates of August 8 and August 15, 2008 and receipt of bids at 10:00 a.m., September 5, 2008. (Lot 5 Ameritech Drive) Upon a motion by Mr. Varner, seconded by Mr. Blake and unanimously carried, the Commission authorized publication of the Notice of Intended sale of property in the Airport Economic Development Area with publication dates of August 8 and August 15, 2008 and receipt of bids at 10:00 a.m., September 5, 2008. (Lot 5 Ameritech Drive) (4) Commission authorization requested to file Variance Petition with the Board of Zoning Appeals for property located in the 900 block of Oliver Plow Court, and authorization requested for Danch, Harner & Associates, Inc. to represent the Commission at the Board of Zoning Appeals hearing, and authorization for Don Inks to sign the replat. Mr. Witwer noted that there is a prospective buyer for this awkwardly shaped 7.84 acre parcel on Oliver Plow Court. In order to use this property they would need seven different variances from the Board of Zoning Appeals. The variances will not negatively impact the COMMISSION AUTHORIZED PUBLICATION OF THE NOTICE OF INTENDED SALE OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT UREA WITH PUBLICATION DATES OF AUGUST 8 AND AUGUST 15, 2008 AND RECEIPT OF BIDS AT 10:00 A.M., SEPTEMBER 5, 2008. (LOT 5 AMERITECH DRIVE 12 South Bend Redevelopment Commission Regular Meeting -August 1, 2008 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (4) continued... city's intent for this industrial park nor nearby neighbors. The variances are: (1) Reduction from a 100 foot setback on the north side of the property to a minimum 0 foot setback. The north property line abuts the railroad track which is several feet above the rear line of this lot. We previously asked for and received a similar variance for the lot to the west and the rear setback for this property would be similar to the abutting property. (2) A variance from the requirement of providing one tree every 40 feet along the north and west property lines. The proposed development would not provide any landscaping on these two sides of the property. (3) A variance from the requirement of providing one tree every 40 feet along the south property line (Oliver Plow Court). The proposed development would provide one tree every 60 feet instead. (4) A variance from the requirement of no loading area in a front yard along Oliver Plow Court to provide for an enclosed loading area with required maneuvering area. Because of the nature of the product to be assembled inside the building, it is necessary to have a loading dock on the south side. The proposed building has mitigated this situation by having the loading docks internal to the building with overhead doors closing off the docks when they are not in use. (5)A variance to allow the minimum parking setback along Oliver Plow Court to be 15 feet instead of the required 25 feet. 13 South Bend Redevelopment Commission Regular Meeting -August 1, 2008 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (4) continued... (6) A variance from the requirement to provide foundation plantings along the East foundation wall and placing them instead along the Eastern edge of the Eastern access drive. (7) A variance from the required 72 bushes to be planted along a portion of the south building wall. The developer will instead plant 45 bushes along the long walls to the east and west of the office area. Full foundation plantings will continue to be required along the office foundation walls. Staff has been working with the business for several weeks and feel that these requests are reasonable. Ranch Harner & Associates, Inc. prepared the necessary documents on behalf of the Redevelopment Commission so that they could be filed by the July 30, 2008 deadline. Staff is requesting that you authorize the submission of this application so that it can be heard by the Board of Zoning Appeals at its August 20, 2008 meeting. We will also need to submit a final plat for this property and staff requests authorization for Don Inks to sign the replat that Danch Harner prepares. Upon a motion by Mr. King, seconded by Mr. Varner and unanimously carried, the Commission authorized filing of a Variance Petition with the Board of Zoning Appeals for property located in the 900 block of Oliver Plow Court, and authorization requested for Ranch, Harner & Associates, COMMISSION AUTHORIZED FILING OF A VARIANCE PETITION WITH THE BOARD OF ZONING APPEALS FOR PROPERTY LOCATED IN THE 900 BLOCK OF OLIVER PLOW COURT, AND AUTHORIZATION REQUESTED FOR RANCH, HARNER & ASSOCIATES, INC. TO REPRESENT THE COMMISSION AT THE BOARD OF ZONING APPEALS HEARING, AND AUTHORIZED DON INKS TO SIGN THE REPEAT 14 South Bend Redevelopment Commission Regular Meeting -August 1, 2008 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (4) continued... Inc. to represent the Commission at the Board of Zoning Appeals hearing, and authorized Don Inks to sign the replat. (5) Commission approval requested for Agreement Regarding Purchase of Real Estate in the Airport Economic Development Area. Mr. Witwer noted that staff is requesting the Commission to enter into an agreement with St. Joseph County for acquisition of 2611 and 2615 Linden Avenue. These properties are the last of the acquisition for the Bosch project area. The county will first close on a tax lien and then sell the properties to the Commission for $10 each. Upon a motion by Mr. King, seconded by Mr. Blake and unanimously carried, the Commission approved the Agreement Regarding Purchase of Real Estate 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. COMMISSION APPROVED THE AGREEMENT REGARDING PURCHASE OF REAL ESTATE IN THE AIRPORT ECONOMIC DEVELOPMENT AREA 15 South Bend Redevelopment Commission Regular Meeting -August 1, 2008 6. NEW BUSINESS (CONT.) E. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. F. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. G. Ratification of Services Contracts There were no Service Contracts to be ratified. H. Other Mr. Varner noted that there has been much enthusiasm for the potential of the Tech Park and MIND research park. Though he hopes the two parks achieve the success that has been touted, he wanted to note for the record that there are some tech parks that have had such hopes unrealized. He offered two articles, one about a tech park in DuPage County, Illinois, associated with Northern Illinois, associated with Argonne National Laboratories, associated with the University of Chicago, and with the Fermi National Accelerator Laboratory. Those are some of the most prestigious, well-known, well-funded institutions in America. Yet, this tech park, after three years, has not taken off. The anticipation was that there would be $SOOM of development. The Commission needs to look realistically at the possibilities. We need to be realistic about a timeline for the nanotechnology spin-off development. South Bend should be prepared to make its investment only when it is needed, not speculatively. 16 South Bend Redevelopment Commission Regular Meeting -August 1, 2008 6. NEW BUSINESS (CONT.) H. Other (1) continued... Mr. King referred Mr. Varner to Albany's Web site where it tells of IBM's investment at One Billion Dollars, creating 1,000 new jobs. There are those kind of stories, too. Mr. Varner agreed. There are lots of good stories, too. South Bend just needs to be realistic and not make its investment ahead of developer investment. 7. PROGRESS REPORTS There was no report. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is scheduled for Friday, August 15, 2008 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. King made a motion that the meeting be adjourned. Mr. Varner seconded the motion and the meeting was adjourned at 10:31 a.m. PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT .~~~ :. Da~~:~~..iiil~;L~ire~.tor. ~ ~ ~i~,L'Jomes,~P~ ~~~.~~.. ~ ... ~ . , 17