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Home My WebLink About11-14-13 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING Thursday, November 14, 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 Mr. Stan Wruble Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. David Relos, Economic Development Specialist Mr. Brock Zeeb, Economic Development Director Mrs. Cheryl Phipps, Recording Secretary Mr. Jitin Kain, Director of Planning Ms. Debrah Jennings, Property Manager Others Present: Mr. Chris Fielding, Assistant Executive Director Ms. Kara Kelly, Director of Communications Ms. Angie McCaslin Mr. Cecil Eastman Mr. Conrad Damian Mr. David Matthews, East Bank South Bend Dev., LLC Ms. Velvet Canada Mr. Larry Kats, Yummy Cupcakes Mr. John Mester, Bradley Co. Mr. Ed Bradley, Newmark Grub Mr. Ralph Lamp Kin Jr. Mr. Erin Blasko, South Bend Tribune Mr. Mark Peterson, WNDU Mr. Tim Andrews, WNDU Cameraman 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Tuesday, October 22, 2013 Upon a motion by Ms. Schey, seconded by Mr. Inks and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Tuesday, October 22, 2013. 1 South Bend Redevelopment Commission Regular Meeting —Thursday, November 14, 2013 3. APPROVAL OF CLAIMS 324 AIRPORT AREA . . . . ......... . . ..................................................... . ... . ........ . ... . ..... . . . ... . ....... . . . ............................ . . . . . . . ................. . ... . . . . . ............... . . . St. Joseph C Treasurer . . . ........... . .. . . . ................ . ........... 1,308.41 . . .. . . ................... . .. . . . .. . ......................... . ... . .. . Property Taxes on 3 Sept 2012 Tax Sale Properties BSA LifeStructures 10,830.00 Ignition Park - Phase 1B Infrastructure Faegre Baker Daniels 6,114.05 LaSalle Hotel / Studebaker Plaza South Bend Water Works 2579.19 514 Rush / 701 E South IDEM 224.61 Personnel Costs DLZ 28,630.00 Right-of-way Fellow St. Corridor Plews Shadley Racher & Braun LLP ........ . . .......... . ......... . ................. .......... . . . ........... . ........................ Sopko Nussbaum, Inabnit & Kaczmarek ..... . ...................... . . ..... ............................................. Weaver Boos Consultants 14,858.44 ... . . .......... . — 1,712.50 13,382.97 Ivy Tower Environmental/ Union Station . .............. ......... . . . .... . . . . . . ................. . . .. ............ -- .............. ................. Legal Services . . ................................ . .. . .. . . ...... . . .. . . ........................ Ivy Tower Plews Shadley Racher & Braun LLP 35,408.49 Bosch/Honeywell South Bend Water Works 262.38 Ardmore Tr./Prast Blvd Cressy & Everett Management Corp. 26,018.09 Bosch South Bend Parks & Recreation Dept. 3,020.00 Centralized Mowing Jones Petrie Rafinski 840.00 Ivy Tower . ............................... . . ... . ............. ......... . ............ ....... . ... . ...... . Hull & Associates .. . .... . ...... ...... . . . . . ................... . 720.00 . . ... . .............................. . . . General Consulting . .............. . ........ . ... . ........... . .. . .. ...................... . . 420 FUND TIF DISTRICT-SBCDA GENERAL Cedric R. Kookie and Mary A. Moodie 580-00 Purchase of right-of-way for the Fellows St. Corridor . ... . ............................... . ... . .................... . ............ . . . . ................. -- ...... . . . . . . . . South Bend Water Works ................... ............................. 240.93 325 S Lafayette / 410 Wayne St South Bend Parks & Recreation Dept. 505.00 Centralized Mowing Sopko, Nussbaum, Inabnit & Kaczrnarek 2,300.00 Legal Services Faegre Baker Daniels ... . .... . . . .......... . ............ ................. . ........ . . ............................... . ... . . DTSB 7,237.75 . . . . ................ . ........ . 13,875.00 LaSalle Hotel / Studebaker Plaza . . ............. .............. . . .. . . .... . ...... Beautification Program 422 TIF DISTRICT WEST WASHINGTON . . ... . ............ . .. . ... . ... . .. . ........ . . . .............................. Morcon Construction Co. _ -- . ............... 27,500.91 . . . . ... ........................... . . . . . ... .......................... .......... Rushton LP and SBHF South Bend Parks & Recreation Dept. 90.00 Centralized Mowing 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT . . ........ . ............... Reith-Riley Construction . . . ..................... 161,228.53 ................ . ............... ... . . . .................................. ........... ......... . - ............ . .. Memorial Parking Phase 3B 429 FUND NORTHEAST DISTRICT ..... . ............... . . . . . . . . . .. . ... . ........ .......... DTSB ........... . .............................. . . . . .. 4,140.34 . . ....................... . . . .. . .. . ................ . ... .......... ............................ Parking Garages Faegre Baker Daniels 6,821.25 Legal Services . ... . .... . .... . . . . ............. . . . ... . ..... . ........ . . ...... . ...... South Bend Redevelopment Commission Regular Meeting - Thursday, November 14, 2013 3. APPROVAL OF CLAIMS (CONT.) 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA #1 DLZ .............................--......................................................_............................._......................................--. _._............................ Horvath Family 2010 Revocable Trust 1,640.00 -- .........._- ......_.......__- 510.00 Bowen St. Sidewalk RW .................... _._ .... __ ................... _ ....... _ ..... - -- ... _- ....... - - -- -- Purchase right -of -way Christopher J Worm and Ashley N. Worm 650.00 Purchase right -of -way South Bend Parks & Recreation Dept. _ ........................................................ .............._................ _....................... Reith-Riley Construction 45.00 _— _..._.... 569,550.41 Centralized Mowing — -. ....... ....I .............. ....._ Main St./Lafayette Michelle M Swain 1,425.00 Purchase right -of -way Matthew J Dyer 300.00 Purchase right -of -way Horvath Family 2010 Revocable Trust _ .... _ ...... -- ........................ _...__ .......... --._................._ ............... _._ ............. __ _ ..... _.......... 200.00 —_._ ....... _._................................... 944,749.25 Purchase right -of -way .._ ......... _ ..- ............ _.... ............ _... Upon a motion by Ms. Schey, seconded by Mr. Varner and unanimously carried, the Commission approved the Claims submitted Thursday, November 14, 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) Agreement for Sale of Land for Private Development and Development Plan (228 Sycamore) Mr. Relos noted that this property was recently taken through the disposition process, with no bids being received by the September 12, 2013 deadline. The lot is 53' x 99' and is currently a paved parking lot. Average appraised value is $33,500. Staff has since received two offers, one for $5,000 supporting no further development, and the one that follows. East Bank South Bend Development, LLC (David Matthews), plans a $2.5 million, five story mixed use building on lot 9 of the current East Bank Townhomes site. Mr. Matthews plans first floor commercial with the upper four floors housing 12 apartments; each floor having a one, two, and three bedroom unit. The Sycamore lot will provide parking for this new, larger development. Mr. Matthews will improve the Sycamore parking lot per the Agreement for Sale. Details of the Agreement are: 3 South Bend Redevelopment Commission Regular Meeting — Thursday, November 14, 2013 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (1) continued... • $8,400 sales price. • Improve lot per Exhibit B of the agreement within a two -year period • Items precedent to closing include: o Proof of financing o Commission approval of the site's Development Plan • Restrictions for use of property (per Development Plan) • Title revetment upon certain events Staff requests Commission approval of this Agreement for Sale and the Development Plan for this property to support the new, larger development at the East Bank Townhomes site. Mr. Jones asked if the site itself will include parking. Mr. Matthews responded that it will. Ms. Jones asked if the Sycamore parking is across the street. Mr. Matthews responded that it is. Mr. Wruble asked if Mr. Matthews was planning on converting the apartments into condominiums. Mr. Matthews responded that at this time he's unsure. He's had good success at Ivy Quad by the Notre Dame Campus selling flats to people who have relocated to be near Notre Dame, and who want to have the housing on one level, as opposed to what has been built in the downtown area which is housing on multiple levels. This is an opportunity to try building flats downtown. Mr. Downes asked what the square footage would be for one of the units. Mr. Matthews responded that the small units would be approximately 1,000 sq. ft. and the large units would be approximately 2,000 -3,000 sq. ft. Mr. Downes asked if there is any anticipation of a demand for a bigger unit, where a buyer would want the entire floor. Mr. Matthews responded that he will not be adjusting the unit size at this development. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Agreement for Sale of Land for Private Development and Development Plan (228 Sycamore). (2) Lease termination request for 119 S. Michigan St. Mr. Zeeb noted that on October 30, 2013 the Department of Community Investment received notice from the South Bend Police Department to terminate its existing lease in the Michigan Street Shops located at 119 S. Michigan St. 1i South Bend Redevelopment Commission Regular Meeting — Thursday, November 14, 2013 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (2) continued... Section 10 of that lease agreement requires 30 day notice of lease termination. This termination request meets the requirement set forth in section 10 of the current agreement. The police substation space in Michigan Street Shops will be vacated by December 1, 2013. (3) Lease By and Between the South Bend Redevelopment Commission and Irish Cupcakes, Inc. d /b /a/ Yummy Cupcakes. Mr. Zeeb noted that Yummy Cupcakes franchise owner, Lawrence Katz has submitted a proposal to lease space located at 119 S. Michigan St. in the South Bend Central Development Area (SBCDA) with the following items. Synopsis of Proposed Lease: • Lease Term five (5) years, with the option of two - five year lease renewals; • Initial rent is $8.00 per sq. ft., totaling $4,800.00 for six months of year one (due to 180 day rent commencement clause in proposal) and $9,600 years 2 -5; • Common Area Maintenance and real estate tax will be billed at $5.53 per sq. ft. totaling $3,318.00 for six months of year one and $6,636.00 years 2 -5; • Tenant will take procession of space in "as is condition "; • Owner will proved three (3) parking permits for Leighton Parking garage at no cost to tenant and (3) parking permits at a reduced rate of $30.00 each per month. The proposed lease will produce $73,062.00 during the 5 year lease agreement. The Commission will incur $14,400.00 for parking over the 5 year lease. If executed, the lease will net $58,662.00 during the 5 year lease period. The proposed lease will have private investment in the Michigan Street shop space of $24,000.00 (estimated psf. @ 1200 sf.) The lease with Yummy Cupcakes will be paying the taxes and the CAM expenses, which the SBPD lease was not paying. Community Investment is in support of this national retail business locating in downtown South Bend and believes the business is a good fit for the Michigan Street shops. Upon approval of this agreement, Redevelopment Retail will continue to maintain 100% occupancy. Staff recommends approval of Lease with Yummy Cupcakes /Lawrence Katz /Irish Cupcakes. Mr. Katz noted that he is very excited to open up a Yummy Cupcakes store, provide employment, and income for downtown South Bend. 5 South Bend Redevelopment Commission Regular Meeting — Thursday, November 14, 2013 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (3) continued... Mr. Varner asked if this is a franchise. Mr. Katz responded that it is a franchise out of Burbank, CA. with over 450 varieties including gluten free, sugar free, and fat free. Mr. Varner asked how many stores. Mr. Katz responded that there are 10 stores including Istanbul and Qatar. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Lease By and Between the South Bend Redevelopment Commission and Irish Cupcakes, Inc. d/b /a/ Yummy Cupcakes. (4) Option Agreement with St. Joseph County Public Library for lots along 300 block of South Michigan Street. (former Baer's lot, now parking) Mr. Kain noted that the Option Agreement is between the Redevelopment Commission and the St. Joseph County Public Library for Commission owned property in the South Bend Central Development Area commonly known as the " Baers Lot." The Baers Lot is a collection of 6 individual parcels that are located between Michigan Street and Main Street, adjacent to the St. Joseph County Library's Main branch in downtown South Bend. The lots are currently used as surface parking by the library as well as by Downtown South Bend, Inc. (DTSB) for daily parkers. The St. Joseph County Public Library wishes to enter into an option agreement with the Redevelopment Commission for a term of 5 years to enable them to purchase the property for the purpose of an expansion of the Main Branch. The library expects to build a new facility at this location in about 5 -7 years. The library has also identified the need for drainage improvements to those surface parking lots which are expected to cost $52,534.00. The Redevelopment Commission and St. Joseph Public Library have both initiated appraisals for the property and the average of five appraisals is $163,200.00 which is set as the sale price. The Option Agreement states that the library will make the drainage improvements to the Commission lots at its expense but this amount will be applied as a reduction to the sale price of the lots, should the library choose to exercise the Option in 5 years and purchase the lots from the Commission. The library has also agreed to maintain the DTSB parkers on the lot for the duration of the Option Agreement. Staff requests approval of the Option Agreement with the St. Joseph County Public Library for a term of 5 years. Mr. Downes asked if there are any other improvements being made to the lot besides drainage —will it look nicer. Mr. Kain responded that there is a larger plan; the library already owns some lots that are more interior. They own some parcels where the old Fort Wayne on South Bend Redevelopment Commission Regular Meeting — Thursday, November 14, 2013 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (4) continued... Diocese office used to be. They are making it into a public plaza space. The alley between the lots and the library building will be closed to public access so it will become an employee pathway to the public plaza space. So they are improving all of their lots and our lots. Mr. Downes asked what was going on with the Cornucopia building. Mr. Kain responded that he believes the library has subleased that building to Ciao's restaurant and Ciao's has subleased to someone else. Swoffies Pizza and Subs is moving into the north corner of the building, and behind that the same owner is putting in a small blues club. Upon a motion by Mr. Downes, seconded by Ms. Schey and unanimously carried, the Commission approved the Option Agreement with St. Joseph County Public Library for lots along 300 block of South Michigan Street. (former Baer's lot, now parking). (5) Proposal for Professional Services Agreement for concept design of improvements to the River Glen Office Campus. Mr. Kain noted that the professional services agreement is for the concept design of public infrastructure improvements to the River Glen Office Park in downtown South Bend. The office park is located between Columbia and Monroe Streets, adjacent to Karl King Towers, within the South Bend Central Development Area ( SBCDA). The current owner of the Office Park is looking at making substantial investments in remodeling the office buildings on the campus. To complement that effort, the concept design services will study potential improvements to the campus including, Riverwalk site furnishings, lighting, campus entryways and surface parking reconfiguration. Staff requests approval of the professional services agreement with Kil Architecture & Planning in an amount not to- exceed $6,200 from the SBCDA TIF. Mr. Downes asked about the trees on the Riverwalk that were cut down because they were diseased, will part of this concept be used to replace them as well. Mr. Kain responded that this concept will not only replace those trees but also clear some of the scrub along the riverbank. Mr. Varner asked if this anticipates a TIF request for financing the project. Mr. Kain responded that it does. Staff will come back to the Redevelopment Commission after the design has been accomplished. 7 South Bend Redevelopment Commission Regular Meeting — Thursday, November 14, 2013 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (5) continued... Upon a motion by Ms. Schey, seconded by Mr. Inks and unanimously carried, the Commission approved the Professional Services Agreement for concept design of improvements to the River Glen Office Campus. (6) Resolution No. 3183 authorizing the Assistant City Attorney of the City of South Bend to execute an agreement on behalf of the City of South Bend, Indiana, Department of Redevelopment. (Studebaker National Museum) Mr. Meteiver noted that Google Maps has embarked upon a further project: they've finished with the maps, street views, and now they are looking at providing interiors of public buildings. The primary focus at this juncture is the mapping of museums. They've asked that the Studebaker Museum be one to be mapped. One of the concerns is the identification of mechanicals and security sensitive areas of the building. They provided a copy of the aerospace museum in Washington D.C. that they have completed and there are nonpublic access areas which are blocked out with a blue blob so one can't identify which walls are attached to which mechanicals so that security risks are taken care of. They have an online access agreement that they would like to have executed by the Redevelopment Commission. It is simply a click to acknowledge the terms, so they can go into the building to do some photography, geo locates, and establish a walking tour. Resolution No. 3183 authorizes Mr. Meteiver to execute that agreement online on behalf of the Commission. Mr. Downes asked if the Studebaker Museum is okay with this. Mr. Meteiver responded that they are. Upon a motion by Ms. Schey, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3183 authorizing the Assistant City Attorney of the City of South Bend to execute an agreement on behalf of the City of South Bend, Indiana, Department of Redevelopment. (Studebaker National Museum). B. Airport Economic Development Area (1) Resolution No. 3184 appointing a member to the Blackthorn Owners' Association Board of Directors. Mr. Relos noted that the Blackthorn Owner's Association's by -laws call for a three member Board of Directors, to be appointed by the Redevelopment Commission. At the annual Owner's Association meeting this past October, the Board of Directors nominated William Panzica to be reappointed to another three -year term. Mr. Panzica's current term expires the end of this year. Staff requests approval of Resolution No. 3184, to allow the appointment of William Panzica to the Blackthorn Owner's Association Board of Directors. South Bend Redevelopment Commission Regular Meeting — Thursday, November 14, 2013 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (1) continued... Ms. Jones asked who the other members are. Mr. Downes responded that he is the Secretary, and Jon Cook is the president. Upon a motion by Ms. Schey, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3184 appointing a member to the Blackthorn Owners' Association Board of Directors. (2) Resolution No. 3182 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Blackthorn Street Light Project) Mr. Relos noted that Resolution No. 3182 and approves an Agency Agreement to support the replacement of 84 street lights along Nimtz and the side streets in the Blackthorn area. These lights are based on those originally installed when the Commission developed Blackthorn in 1992. Because of the age of the lights' design, bulbs and ballasts are no longer available. The City's Director of Streets has been working on a solution to this situation, and suggests we replace only the light heads with more energy efficient LED lighting, keeping the poles the lights are mounted on. Estimated cost per replacement head is $800. The City's Traffic & Lighting Department will provide the manpower to replace and install the new lights. Staff requests approval of Resolution No. 3182 and Addendum to the Master Agency Agreement, in a not -to- exceed amount of $68,000. Mr. Downes asked if Mr. Jon Burke, the City's energy engineer, was consulted in this decision. Mr. Relos responded that Mr. Paul South has been working with him. Mr. Downes asked if there was some payback here. Mr. Relos responded that there is; he spoke to Mr. South a few days prior to the meeting and was told that 20% or 30% of the cost of the sodium base lights that a lot of the street lights are now. It is a significant savings. Mr. Downes asked when Mr. Relos gets a chance, find out what the savings are and let the Redevelopment Commission know. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3182 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Blackthorn Street Light Project). C. West Washington - Chapin Development Area There was no business in the West Washington- Chapin Development Area. 21 South Bend Redevelopment Commission Regular Meeting — Thursday, November 14, 2013 6. NEW BUSINESS (CONT.) 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. G. Other (1) Proposal from South Bend Parks & Recreation for snow removal on Commission owned properties. Mr. Zeeb noted that South Bend Parks Department has submitted a proposal for snow removal on the Commission owned properties for the winter months. Synopsis of the proposal: • Proposal term is 1 year. • Start date will commence on the first significant snow fall and continue for 14 weeks from that date. • Properties have been identified by the Department of Community Investment in list format. • Additional properties are eligible for snow removal at the cost of $29.93 per hour, billed @.25 hour increments. • Snow removal will begin daily at 5 a.m. Parks has requested $17,000.00 for snow removal on the properties listed by the Department of Community Investment for a 14 week period of time. Parks will provide additional weeks of snow removal at a weekly rate of $1,197.00 if significant snow is received after the 14 week period ends. Additionally, Parks has requested approval of funds to purchase a snow thrower ($1,599.99). This will be owned, stored and maintained by the Parks Department. The proposal from Parks & Recreation eliminates cost of uncertainty of snow removal and reduces overall exposure to unexpected snow removal expenditures under the linear ft. / per snow removal even calculation used previously. In 2010/2011 linear ft. area of snow removal 19,248, actual cost $23,095.45. In 2011/2012 linear ft. area of snow removal 21,151, actual cost $36,972.00. In 2012/2013 linear ft. area of snow removal 20,212, actual 10 South Bend Redevelopment Commission Regular Meeting — Thursday, November 14, 2013 cost $1,494.00. 2012/2013 was a non performing contract. The contractor failed to remove the snow; fortunately the snow melted within days and no heavy accumulation occurred in the downtown snow removal areas. Proposed 2013 /2014 linear ft. area of snow removal is 17,000; proposed cost is $18,600.00. Staff requests the Commission approval of an amount not -to- exceed $26,000. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Proposal from South Bend Parks & Recreation for snow removal on Commission owned properties in an amount not to exceed $26,000. 7. PROGRESS REPORTS (1) Staff update on Studebaker Plaza Mr. Kain noted that the work on Studebaker Plaza has been completed. It looks great. It works as a big public space. We wanted the plaza to be a defining and an interactive place, and I think the design has accomplished that. All of the plantings have been put into place, the Studebaker "S" has been installed, and there is a lot of interest from the museum as well as other members to have a dedication or ceremony done in the plaza in the spring. Feedback so far has been really great and the project came in within the budget as established. Mr. Varner asked who will remove the snow off this winter. Mr. Kain responded that the plaza is privately owned, so the all of the daily maintenance, snow removal, mowing, and clean -up will be done by the owners. This was part of the Option Agreement. (2) Staff update on the Ivy Tower Mr. Zeeb noted that Plews Shadley Racher & Braun, LLP is working on revising the following agreement to include the proposed revenue bond language from the developer and to also include the previous approved MOU's and development agreement into one comprehensive document. Weaver Boos Consultants worked the specs for the PCB removal and is reworking specs for asbestos removal. They helped review and gave guidance on the awarding of bids for PCB removal. They are also expected to review and give guidance in awarding for the asbestos removal. Remediation of PCB's contracts have been awarded through the Board of Public Works. PCB removal is set to begin the first week of December and is to be completed in one week from the contractor. Additional environmental reporting on the disposal will take an additional 60 to 90 days. Request to advertise through the Board of Public Works occurred on Tuesday, November 12, 2013 for asbestos removal. Weaver Boos is working new specs for just specific asbestos removal. Any additional remediation proposed on the project is going to be rolled into the revenue bond and in the development agreement. Staff reached out to other large municipalities such as Detroit, MI, Chicago, IL, on their practices and policies regarding remediation in an effort to make sure we're more efficient and practical on this project and on future projects. Ms. Schey asked regarding the environmental issues, what has been done so far and what is yet to be done before Ivy Tower can become a viable project. Mr. Zeeb responded that what has 11 South Bend Redevelopment Commission Regular Meeting — Thursday, November 14, 2013 7. PROGRESS REPORTS (CONT) been done is preparation for the PCB removal, which is about to begin. This is the first and largest component of the environmental remediation. The next major component is the asbestos removal which is expected to be completed by September 2014. Any other remediation will be rolled into the proposed revenue bond. Staff is working on a new development agreement that reflects the use of a revenue bond. The new development agreement will have a new timeline Ms. Schey asked if Kevin Smith will be making this an internet hub. Mr. Zeeb responded that the Ivy Tower building will be an extension of the Union Station Technology Center (USTC) building which is a data hub, but also a mixed use building with other tenants. The Ivy Tower building might have residential on the top floor. Mr. Varner asked what the proposed revenue source for the revenue bonds is. Mr. Relos responded that Mr. Smith place them and he feels that he has a large enough revenue stream to support the repayment. Mr. Varner asked with regards to the environmental costs, did the Commission agree to fund all of the environmental remediation. Mr. Relos responded that it did. Mr. Varner asked if we are within budget for the project at this point in time. Mr. Relos responded that we are. Ms. Schey asked if the budget was $8million. Mr. Relos responded that it is closer to $6 million for the total city commitment. But only half of that is for environmental. (3) Salvation Army Mr. Relos noted that staff is working with Salvation Army for its use of the Schillings building for the "Toys for Tots" drive. We hope to have at the next Redevelopment Commission Meeting a ratification of a temporary use agreement. (2) Staff update on the Hoffman Hotel Mr. Downes asked for an update on the Hoffinan Hotel. Mr. Kain responded that the Hoffinan Hotel is a tax credit project so the developer has applied for tax credits. The deadline was November Is'. The credits are announced typically by the end of February. If they receive the credits, they will move ahead. If not, they will reapply in the next round. Mr. Downes asked if there is a development agreement in place yet. Mr. Kain responded that there is not. Mr. Downes asked if this will come back to the Commission. Mr. Kain responded that the Redevelopment Commission does not own the Hoffinan Hotel. Mr. Relos responded that Hollingsworth has an Option Agreement with the owners. If they get the tax credits in February 12 South Bend Redevelopment Commission Regular Meeting — Thursday, November 14, 2013 7. PROGRESS REPORTS (CONT) then they have an agreement in place where Mr. Bill Hollingsworth will buy the building and then move forward. Mr. Kain responded that the staff role was to help them write a letter of recommendation. Mr. Downes asked if we have any financial involvement at this point. Mr. Kain responded that not at this point. Typically tax credit projects require some involvement into the project, but staff has not brought anything to the Redevelopment Commission yet. It depends on whether the application is approved. Mr. Downes asked if the Commission might put something into the project. Mr. Kain responded that it could. There has been conversation about possibly doing some improvements to the parking areas, but nothing inside the building. 8. NEXT COMMISSION MEETING The Next Regular Meeting of the Redevelopment Commission is scheduled for Wednesday, November 27, 2013 at 9:30 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, the meeting was adjourned at 10:10 a.m. cott Ford, Executive Director 13 Marcia I. Jones, Pres4eft