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Home My WebLink About2 A Minutes 12-12-13 MeetingNOTICE OF SOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULE OF REGULAR MEETING Pursuant to Indiana Code 5- 14 -1.5 -5 this will serve as notice that the South Bend Redevelopment Commission will reschedule its Regular Meeting of 4:00 p.m., Tuesday, October 16, 2011 to 4:00 p.m., Tuesday, October 23, 2012. This meeting will be held in the 13'h Floor Conference Room, County -City Building, 227 W. Jefferson Boulevard, South Bend, Indiana. At this Rescheduled Regular Meeting, the Redevelopment Commission will discuss any matters which may properly come before it. Signed this 14`x' day of October, 2012. Marcia I. Jones, President South Bend Redevelopment Commission Mailed this 14`h day of October, 2012. FOR HEARING AND SIGHT IMPAIRED PERSONS Auxiliary Aid or Other Services are Available upon Request at No Charge. Please Give Reasonable Advance Request when Possible. S:\ COMM INVESTMANAGEMENTIADMINISTRATIVE WORKING FILES\REDEVELOPMENT COMMISSION ADMIN\NOTICE REDEV COMM RESCHEDULED MEEFG NOTICE.DOC South Bend Redevelopment Commission Regular Meeting - Thursday, December 12, 2013 1. ROLL CALL (CONT.) Mr. Eric Walton, Cameraman WNDU Ms. Kelli Stpoczynski, WSBT Cameraman, WSBT Mr. Erin Blasko, South Bend Tribune 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, November 14, 2013 Upon a motion by Mr. Inks, seconded by Mr. Downes and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Thursday, November 14, 2013. 3. APPROVAL OF CLAIMS 324 AIRPORT AREA _.. _.._- ..__......._........._.... Appraisal Baer's Parking Lot ...._ Faegre Baker Daniels 3,838.60 South Bend Water Works _ ... .................- ----._.._..............._. ...r.--- 151.32 ......._._............. IDEM _ .................._._.............................._..........^.. ........................_..._._ ._- ......................... -- 898.43 _._... .................._....._..__.. South Bend Tribune .... ._..__...__...._....._....... -- ..............-........_..._......._................................_._...---...----- .._......................._.... 53.08 Plews Shadley Racher &Braun LLP 26 524.22 South Bend Water Works ..............__...._...........--- ..........................__... _....---...__...... ............................. -- 2,209.89 .......... ............................... Ortiz Concrete 41.354.00 420 FUND TIF DISTRICT -SBCDA GENERAL _ _..... _ -- .............. ...._ __ ...... - ............ ,__.._ ............... .............._......... ...._...- ._..................._ _ ............................... DHA 1,200.00 Legal Description for Riverside District _._ _ ......... - -- - _ ....................... F...----- ..........................._ ....... __ ._ _ ...__ . ........ _ ... _....... _ ... T._:__. Meridian Title Corporation 200.00 LaSalle Hotel _......_ .... ............. ......:.----- ...............__. ....... ._..._......................_._ __ ......... ............... _._..... - -- .............. ................... ._... ..... -- _.- .... _ .... ... Downtown South Bend. Inc. 1,484.16 St. Joseph/Main/Jefferson Surface Lot Mgmt. Appraisal Services, Inc. _ Faeg Baker Daniels _. ...._.... ................ Meridian Title Corporation ..... ........ Rose Pest Solutions ......... .............__.._............. ........ ....... ............................... South Bend Water Works ........ ......__ . _ Ernsperger Air Conditioning & Heat, I nc Downtown South Bend, Inc. _.._ ......................... .._.._.....:..........._......_._..................—._....................._..........._.............................................................................. _ 1,500.00 _.. _.._- ..__......._........._.... Appraisal Baer's Parking Lot ...._ 1,310.70 11,11-1. .............. Legal Services ....... . ....... 200.00 Title Search 105.00 LaSalle Hotel ........... .........._ _ 82.43 ............ ........................ 325 S Lafayette Blvd _ ................_.. .. ..... ....... ..... Inspected unit heaters, replaced pilot Gates/ 295...77 thermocouple __ _...._ 20,500.00 ..... __ ......... - - - -- . . .............. Parking Garages 111 ......... ......... ......... ......... ........ ..._.:.... 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT ........ Reith -Riley Construction 319,503.22 Memorial Parking Phase 3B K South Bend Redevelopment Commission Regular Meeting — Thursday, December 12, 2013 3. APPROVAL OF CLAIMS (CONT.) Total 3,971.20 Legal Services 1-11 ................... .. 17,845.00 Bowen St. Sidewalk RW / Fellows St 3,892.45 Environmental S.C. - Main St. & Lafayette 465.00 Purchase right -of -way 2,025.00 .... .............____.._______..... . Relocation Expenses 465,181.27 Main/Lafayette Crossover Construction 914,790.74 Upon a motion by Mr. Inks, seconded by Mr. Downes and unanimously carried, the Commission approved the Claims submitted Thursday, December 12, 2013. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS Ms. Jones asked to add an item to New Business. There was no objection and the item 6.B.I(a) was added. A. South Bend Central Development Area (1) Ratification of Certificate of Completion signed by Scott Ford (Harmon Glass, SW Western and William) Mr. Relos noted that this project has been completed as agreed in the development agreement and, therefore, qualifies for a Certificate of Completion to release the owner from further obligation. Scott Ford signed the Certificate of Completion and that action now needs to be ratified by the Commission. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission ratified the Certificate of Completion signed by Scott Ford (Harmon Glass, SW Western and William). 3 South Bend Redevelopment Commission Regular Meeting — Thursday, December 12, 2013 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (2) Disclaimer and Waiver of Interest to 1" Source Bank for fixtures to be installed at 119 S. Michigan St. (Yummy Cupcakes, Michigan Street Shops) Mr. Zeeb noted that Yummy Cupcakes is requesting the Redevelopment Commission sign a disclaimer and Waiver of Interest for 1 st Source Bank on fixtures being installed in the 119 S. Michigan St. Shop. The loan through 1St Source Bank is for fixtures being installed in the Commission owned property. Normally when fixtures are installed into a building they become part of the building. This waiver would allow 1St Source Bank the right to those fixtures in the event of a default on the loan. This waiver also requires the Commission give 1St Source Bank a 30- day notice prior to terminating the lease with Yummy Cupcakes, so that it has an opportunity to enter the building and secure its interest in the fixtures. The Commission attorney has review the waiver of interest and finds it acceptable. Staff requests approval. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved Disclaimer and Waiver of Interest to 1 st Source Bank for fixtures to be installed at 119 S. Michigan St. (Yummy Cupcakes, Michigan Street Shops). (3) Agreement for Services by and between the City of South Bend, Department of Redevelopment, acting by and through the South Bend Redevelopment Commission and Downtown South Bend, Inc. (Downtown Beautification) Mr. Relos noted that annually the Commission enters into an agreement with Downtown South Bend, Inc. (DTSB), to provide an array of services to the downtown area. Examples of DTSB's services are: Beautification Program (flowers, plants, mulch, soil, baskets, liners, snow removal) Streetscape Improvements (banners & flags, holiday decor, street furniture & art) Business recruitment / retention (assistance, data base, research development) This 2014 agreement is the same as the 2013 agreement, which was expanded to include DTSB's responsibility for bicycle racks and the management of the banner program. The fee for these services is $250,000, billed monthly based on services provided. DTSB's work in keeping the downtown area safe, clean, and beautiful is well documented and keeps the downtown experience pleasant and appealing. Staff requests approval of the 2014 Agreement for Services with DTSB. rd South Bend Redevelopment Commission Regular Meeting — Thursday, December 12, 2013 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) continued... Mr. Downes noted that he believes the Commission's funding of DTSB for these services is one of the best investments the Commission has made. They do a fabulous job. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Agreement for Services by and between the City of South Bend, Department of Redevelopment, acting by and through the South Bend Redevelopment Commission and Downtown South Bend, Inc. (Downtown Beautification). (4) Resolution No. 3185 appointing authorized representatives to approve and execute documents related to the LaSalle Hotel on behalf of the City of South Bend, Indiana, Department of Redevelopment. (Mavcon Properties) Mr. Relos noted that Resolution No. 3185 approves the release the Purchase Agreement with Mavcon Properties, which was approved on June 14, 2011, and recorded on June 27, 2011. That Agreement was for the possible purchase and rehabilitation of the Hotel LaSalle, and allowed Mavcon two (2) 180 -day inspection periods to hire architectural, engineering, and environmental consultants, as well as to put together a funding package utilizing Historic and New Market Tax Credits. On July 12, 2012, an additional 60 -day extension was granted. According to the Agreement, Mavcon deposited $4,000 for its two 180 -day inspection periods, which per the Agreement were to be non - refundable if Mavcon did not move forward after the first inspection period. Because both parties worked diligently during and after the inspection periods, the return of the $4,000 deposit was approved on December 4, 2012. Because the Agreement was recorded, it must now be released. Resolution No. 3185 allows staff to move forward with a Release of Commercial Purchase Agreement, which when signed by both parties, will be recorded and will release the original Agreement. Staff requests approval of Resolution No. 3185. Upon a motion by Mr. Inks, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3185 appointing authorized representatives to approve and execute documents related to the LaSalle Hotel on behalf of the City of South Bend, Indiana, Department of Redevelopment. (Mavcon Properties) (5) Authorization to appeal taxes for 237 N. Michigan St. (LaSalle Hotel) Mr. Relos noted that this staff wishes to appeal the property taxes for the Hotel La Salle. Though the hotel does not currently pay taxes because of its government ownership, it does have a current assessed value (AV) of $807,100 ($33,400 land + $773,700 improvements). South Bend Redevelopment Commission Regular Meeting — Thursday, December 12, 2013 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (5) continued... In 2005, when the hotel was taken through the disposition process, the average appraised value was $400,500. Lowering the AV to be more in line with its market value will assist a potential developer in their property tax abatement, since the abatement is based on the property's current AV. Additionally, similar to the process we followed for the Hall of Fame tax appeal, Rick Pitts, a MAI Certified Indiana Appraiser, has provided a Professional Services Agreement to provide a Value In Use appraisal for the hotel. This type of appraisal will be needed for the property tax appeal if our initial request to lower the AV is denied. Also included is a per hour charge to prepare for and appear before the Appeals Board. This proposal will be utilized only if needed. Value In Use is defined by the Real Property Assessment Manual as: "The value of property for a specified use. The concept holds value to be inherent in property itself, that is, the value is based on the ability of the asset to produce revenue or utility through ownership —the value a specific property has for a specific use." Since the appeal would be for the 2013 pay 2014 taxes, the appraisal will value the property as of its March 1, 2013 assessment date. Staff requests approval to move forward with this tax appeal, and if necessary, to utilize this Professional Services Agreement in the amount of $4,300 for the appraisal, and $165 / hour for Mr. Pitts to prepare and appear before the Appeals Board. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission authorized staff to appeal taxes for 237 N. Michigan St. (LaSalle Hotel) and authorized staff to execute the proposal from R.E. Pitts for assistance in the appeal process if needed. (6) Proposal for professional services agreement related to the LaSalle Hotel (Appraisal, 237 N. Michigan St) Mr. Relos noted that staff requests approval to move forward with a property tax appeal for the Hotel La Salle. Though the hotel does not currently pay taxes because of its government ownership, it does have a current assessed value (AV) of $807,100 ($33,400 land + $773,700 improvements). Col South Bend Redevelopment Commission Regular Meeting — Thursday, December 12, 2013 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (6) continued... In 2005, when the hotel was taken through the disposition process, the average appraised value was $400,500. Lowering the AV to be more in line with its market value will assist the proposed developer in their property tax abatement, since the abatement is based on the property's current AV. Additionally, similar to the process we followed for the Hall of Fame tax appeal, Rick Pitts, an MAI Certified Indiana Appraiser, has provided a proposal to provide a Value In Use appraisal for the Hotel. This type of appraisal will be needed for the property tax appeal if our initial request to lower the AV is denied. Also included is a per hour charge to prepare for and appear before the Appeals Board. This proposal will be utilized only if needed. Value In Use is defined by the Real Property Assessment Manual as: "The value of property for a specified use. The concept holds value to be inherent in property itself, that is, the value is based on the ability of the asset to produce revenue or utility through ownership. The value a specific property has for a specific use." Since the appeal would be for the 2013 pay 2014 taxes, the appraisal will value the property as of its March 1, 2013 assessment date. Staff requests approval to move forward with this tax appeal, and if necessary, to utilize the Professional Services Agreement from R.E. Pitts in the amount of $4,300 for the appraisal, and $165 / hour to prepare and appear before the Appeals Board. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission authorized staff to appeal the assessment of the Hotel LaSalle and approved the proposed for Professional Services Agreement related to the LaSalle Hotel for the scope of services and fee proposed. (7) Development Agreement by and between the South Bend Redevelopment Commission and Great Lakes Capital Development LLC. (LaSalle Hotel) Mr. Fielding noted that the Historic Hotel LaSalle is an important part of South Bend's cultural heritage and one of South Bend's few remaining physical legacies. As the city has identified in its Central Area Development plan and the specific Request for Proposals for the hotel, the redevelopment of this historic structure will play a significant role in the on- going revitalization of downtown South Bend. In April 2013 the Department of Community Investment (DCI), acting on behalf of the Redevelopment Commission, released a Request for Proposals for the renovation of the 7 South Bend Redevelopment Commission Regular Meeting — Thursday, December 12, 2013 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (7) continued... structure. In May 2013 the DCI received proposals from 4 developers with 3 being deemed responsive. The viable proposals were from the Barack Group (Israeli Investors) to develop into dorm style living for students, Real America (Carmel, Indiana -based affordable housing developer) for the construction of 63 apartment units, and Great Lakes Capital which proposed 59 apartment units. After a thorough review the DCI is recommending moving forward with the Great Lakes Capital proposal due to its experience in the renovation of Historic structures and the density they will offer to the downtown (approximately 95 residents) Great Lakes Capital is proposing the following: • 23 one bedroom units • 36 two bedroom units • Resident storage • Fitness center • Ground and Mezzanine level commercial spaces • Price points from $842 to $1,360 per month • Estimated investment of $10,848,126 Public Investment • $1.8 million TIF over next 2 years (2013 and 2014) • Support in filing for an 8 year tax abatement • It will develop bid specs for the public work • BPW will handle bid opening • It will serve as construction manager • Purchase price is $1 (see proposal for details) • City will retain ownership of 2 parking lots in rear for potential future garage and lease back It is anticipated that work will commence in early spring 2014. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Development Agreement by and between the South Bend Redevelopment Commission and Great Lakes Capital Development LLC. (LaSalle Hotel). (8) Purchase Agreement for lot at northwest corner of Hill and Colfax. Mr. Kain noted that this purchase agreement is between the Redevelopment Commission and Colfax Hill Partners, LLC for Commission owned property on the North West corner of South Bend Redevelopment Commission Regular Meeting — Thursday, December 12, 2013 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (8) continued... Hill St. and Colfax Ave. This property has been vacant for over 10 years and is a prime location for a mixed use project as envisioned in the East Bank Village Master Plan. Earlier this year, staff issued a Call for Offers with the Bradley Company, the listing agents for this property. Three developers responded with their proposals and staff selected the proposal by Colfax Hill Partners, LLC as it best matched the criteria established in the Call for Offers. The purchase agreement formalizes the transfer of the property to the developers who have agreed to build a mixed use project on the site with approximately 4,700 sq. ft. of commercial space and 13 market rate apartment units. The complete terms are found within the purchase agreement. Some of the highlights are as follows: 1. Developers will pay the Commission $20,000 for the property and build an approximately 22,000 sq. ft. mixed use building within 36 months. The projected cost of this building is $2.9 Million. 2. Developers will further seek a 5 year tax abatement for the project. 3. The Commission will agree to the following: a. Address site drainage, parking lot paving, striping, sidewalks and landscaping b. Work with Burkhart advertising to remove a billboard on the site c. Address on- street parking and other streetscape elements Staff requests approval of the Purchase Agreement with Colfax Hill Partners, LLC and the appropriation of $110,000 from the South Bend Central Development Area TIF (SBCDA) for site work associated with this project. Ms. Audra Sieradzki of Colfax Hill Partners, LLC noted that this agreement is the result of many months of planning for the new apartments that are being built. They will be more of a minimalist contemporary style that one would normally see in city condos. They won't be lofts, but will have a loft -type of feel to them, such as higher ceilings, stainless steel amenities, open floor plans — to really attract that young professional demographic. The developers plan to break ground in April and have the project complete by the end of 2014. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Purchase Agreement for lot at northwest corner of Hill and Colfax. Z South Bend Redevelopment Commission Regular Meeting — Thursday, December 12, 2013 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (1) Contract for Purchase and Sale of Land with Curtis Products (Bosch facility) Mr. Fielding noted that the Redevelopment Commission (RDC) took ownership of the former Bosch/Honeywell property located at 401 North Bendix with the intention of entering into a long -term lease with Bosch. Bosch effectively terminated its lease with the RDC as of 12/31/2012 and DCI immediately began to market the building to prospective companies. DCI has been in negotiations with Curtis Products to relocate and expand its operations to this site since late Spring 2013. In the meantime, DCl/RDC has been paying all management and holding costs on the property (approximately $30,000 per month) while extensive environmental testing has been completed on the site. In an effort to alleviate the high monthly holding costs and pass responsibility for routine /ongoing maintenance to the purchaser we have agreed to share costs for Curtis to manage the property and pay all security and utilities. The payment of $52,000 will be made to Curtis at closing to cover a portion of their expenses for quarter 1 of 2014. The executed purchase agreement is being presented for consideration. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Contract for Purchase and Sale of Land with Curtis Products (Bosch facility). (1) (a) Proposal for professional services with Progressive Engineering for an ALTA survey of the Bosch facility (401 S. Bendix) Mr. Relos noted that to facilitate the sale of the Bosch facility, a survey of the property is needed. The fee for this proposal is $4,950. Staff recommends approval. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the proposal from Progressive Engineering for the scope of services and fee proposed. (2) Resolution No. 3190 approving and authorizing the execution of an amendment to the Addendum to the Maser Agency Agreement (Ignition Park Phase 1B Infrastructure — Supplement #1) Mr. Divita noted that Resolution No. 3190 approves an Amendment to the Master Agency Agreement for Ignition Park Phase 1B Infrastructure (Supplement #1) for Ignition Park Infrastructure Phase 1 B construction documents. The Amendment authorizes the Board of 10 South Bend Redevelopment Commission Regular Meeting — Thursday, December 12, 2013 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (2) continued... Public Works to act as the Commission's agent, and it sets a total budget of $287,400 for BSA LifeStructures to complete plans and bid specifications. On October 11, 2011, the Redevelopment Commission approved a $335,000 proposal from BSA to begin developing the design for the second portion of the Ignition Park infrastructure (Phase 1 B). Since that time, as part of that contract, BSA has completed design of rough grading of the site and developed a revised conceptual design for the infrastructure. The new infrastructure system is much leaner than initially envisioned and reflects feedback received from developers about maximizing development sites. About 30% of the budget for the preliminary design remains unspent; these remaining funds are to be returned to the Airport Economic Development Area TIF reserve to be used for future proj ects. The current proposal from BSA, which reflects the revised concept, includes the development of construction documents (plans and bid specification) for the following elements; • North -south streets and sidewalks connecting Sample Street to the circle at the center of the Park, • Street lighting and landscaping, • Utilities (water, sewer, electric, gas, communications), • Drainage and stormwater management, and • Final site grading. Staff requests approval of Resolution No., including the $287,400 budget from the Airport Economic Development Area TIF. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 3190 approving and authorizing the execution of an amendment to the Addendum to the Maser Agency Agreement (Ignition Park Phase 1 B Infrastructure — Supplement #1). (3) Agreement for Professional Services by and between the City of South Bend, Indiana and Jones Petrie Rafinski. Mr. Divita noted that this agreement is for professional services by Jones Petrie Rafinski to study traffic around the Ignition Park campus. As the final design and construction documents for Ignition Park Phase 1B are developed, a need exists to understand the current traffic patterns and the change in these patterns as 11 South Bend Redevelopment Commission Regular Meeting — Thursday, December 12, 2013 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (3) continued... Ignition Park develops. The traffic impact study will help the city in determining optimal lane configurations and traffic signal upgrades for the park. Staff requests approval of the attached Agreement with Jones Petrie Rafinski in an amount not to exceed $22,300 from the Airport Economic Development Area TIF. Mr. Varner asked if it wouldn't be better to wait until some development occurs in Ignition Park and the traffic it generates, not base improvements on what is proposed. Mr. Kain responded that we need the study in order to make improvements to the existing infrastructure, but the study will not only assess traffic now, but project what it might be in the future. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Agreement for Professional Services by and between the City of South Bend, Indiana and Jones Petrie Rafinski. C. West Washington - Chapin Development Area There was no business in the West Washington- Chapin Development Area. D. South Side Development Area There was no business in the South Side Development Area. E. Northeast Neighborhood Development Area (1) Second Amendment to Development Agreement with the South Bend Redevelopment Authority and Kite Realty Group for Eddy Street Commons Parking Garage. Mr. Relos noted that on February 15, 2008, the Redevelopment Commission, Redevelopment Authority, City of South Bend, and Kite Realty Group LP entered into a Development Agreement for the construction of Eddy Street Commons. A First Amendment to this Development Agreement was signed on May 2, 2008, which finalized streets and alleys to be included in the development. In light of the economic changes that took place as this project began, a Second Amendment (Amendment) has been planned since early 2009, but put on hold until there was a better understanding of project completion and its impact on property values and the community at large. 12 South Bend Redevelopment Commission Regular Meeting — Thursday, December 12, 2013 6. NEW BUSINESS (CONT.) E. Northeast Neighborhood Development Area (1) continued... Mr. Relos noted that the Eddy Street Commons project has had dramatic cumulative impacts. From 2010 — 2013, they are estimated to be: • Direct construction impact (ongoing): 2,600 workers on site since 2009, creating $43.5 million in household earnings and an output (economic activity generated) of $149.4 million • Indirect construction impact (snowball effect): 606 jobs with household earnings of $56 million and output of $187.6 million • Fiscal impact (taxes including state sales, state and county income, innkeepers, and property) of $17.6 million. • Direct economic impact: 140 new jobs with household earnings of $9.7 million and output of $36.2 million • Indirect economic impact: 149 new jobs with household earnings of $13.7 million and output of $121.5 million This Amendment will facilitate ongoing Eddy Street development and its next construction phases, in turn continuing and increasing the impacts mentioned above. A summary of the Amendment is: • Current limited service hotel room count revised from 139 to 119 • Remove condos above the full service hotel; room count of the full service hotel revised from 255 to 160 • Exhibit G construction completion dates updated to actual and expected • Adjusted various goals for assessed values and private investment as shown on Exhibit L • Clarifies how the delay fee associated with Exhibit M is filed and potentially utilized • Right of Way value set and its payment outlined • Remaining public infrastructure completion defined (certain items delayed for construction completion; Kite will complete when construction ends) Staff requests approval of this Amendment, which clarifies roles and responsibilities, adjusts schedules and exhibits to reflect current conditions, and builds upon the impact this project has had on our entire community. Mr. Varner asked if this obligates the Redevelopment Commission to any additional expenditure other than finishing what we've started. Mr. Relos responded that it does. Mr. Varner asked if the hotel with the condominiums was supposed to be eleven stories. Mr. Matt Gabet responded that it's currently proposed to be around six stories. It used to be a 13 South Bend Redevelopment Commission Regular Meeting — Thursday, December 12, 2013 6. NEW BUSINESS (CONT.) E. Northeast Neighborhood Development Area (1) continued... much larger structure with 55 luxury condominiums, which is not feasible in the current market. We want to create an environment that remains viable and feasible and helps the area grow. Mr. Relos noted that there are additional residential units going in in that area that were not originally contemplated that make up for the loss of the condominiums in the hotel. Mr. Varner asked if this includes the construction along the east side of the parking garage, adjacent to the hotel site, behind the Fairfield Inn. Mr. Gabet responded that is does. We have a number of reservations on those; we are looking to start construction later this year on finishing out those units. Mr. Varner asked if once these projects are completed, the net assessment will be sufficient to cover the bond payments. Mr. Relos responded staff is working to make sure they are properly assessed. We will have to wait and see when the second hotel goes up, how it's assessed. Mr. Varner asked in the event that the assessment is not met, is there protection for the city. Mr. Relos responded that that is what the delay fee is for. Kite has an incentive to get the project done in time for the taxes to cover the bond payment. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Second Amendment to Development Agreement with the South Bend Redevelopment Authority and Kite Realty Group for Eddy Street Commons Parking Garage. F. Douglas Road Development Area There was no business in the Douglas Road Development Area. G. Other (1) Agreement for Professional Services by and between the City of South Bend, Indiana, Urban Enterprise Association of South Bend, Inc., and Torti Gallas and Partners, Inc. Mr. Divita noted that this is a professional services agreement among the Redevelopment Commission, the Urban Enterprise Association of South Bend (UEA), and Torti Gallas and Partners for development of a West Side Corridors Master Plan. The city and its partner in this planning effort, the Urban Enterprise Association (UEA), issued a request for proposals for the development of a market -based strategic revitalization 14 South Bend Redevelopment Commission Regular Meeting — Thursday, December 12, 2013 6. NEW BUSINESS (CONT.) G. Other (1) continued... plan for Lincolnway West and Western Avenue. More than twenty proposals were received from regional and national firms. A selection committee representing the Commission and the UEA has recommended a consultant team led by Torti Gallas to undertake this project. The consultant team includes Torti Gallas (master planning and urban design), Zimmerman/Volk Associates (market analysis), Gibbs Planning Group (retail strategy), and Nanni Nonprofit Services (public facilitation). The Commission and the UEA will share responsibility for the proposed $160,000 professional fee to Torti Gallas. Consistent with the funding agreement approved by the Commission on September 12, 2013. The UEA will pay for the first $150,000 of plan development costs. The Commission will pay the remainder of costs, in an amount not to exceed $10,000. Torti Gallas has proposed a six -month planning process to begin in January. The first portion of the process will include data gathering, existing conditions analysis, and a detailed market study. Later portions of the process will focus on the development of the plan document, to include identification of priority areas for investment, land use and design plans, design guidelines, and a strategic plan implementation matrix. Public participation will occur throughout the process. Staff requests approval of the professional services agreement with the UEA and Torti Gallas and an associated budget of $10,000 from the Airport Economic Development Area TIF. Mr. Downes asked where Torti Gallas and Partners, Inc. is located. Mr. Divita responded that their firm in located in Washington, DC. They have consultants around the country including here in South Bend, IN. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Agreement for Professional Services by and between the City of South Bend, Indiana, Urban Enterprise Association of South Bend, Inc., and Torti Gallas and Partners, Inc. (2) Resolution No. 3186 appointing authorized representatives to approve and execute plats and conduct other administrative acts on behalf of the City of South Bend, Department of Redevelopment (2014). Mr. Meteiver noted that this is a standard authorization and procedure resolution that the Redevelopment Commission has passed annually over the last several years. Resolution No. 3186 has been updated to reflect the current staffing of the department. 15 South Bend Redevelopment Commission Regular Meeting — Thursday, December 12, 2013 6. NEW BUSINESS (CONT.) G. Other (2) continued... Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved Resolution No. 3186 appointing authorized representatives to approve and execute plats and conduct other administrative acts on behalf of the City of South Bend, Department of Redevelopment (2014). (3) Resolution No. 3187 appointing authorized representatives to approve an execute contracts on behalf of the City of South Bend, Department of Redevelopment related to the operation and maintenance of Blackthorn Golf Course (2014). Mr. Meteiver noted that this is a standard authorization and procedure resolution that the Redevelopment Commission has passed over the last several years. Resolution No. 3187 has been updated to reflect the current staffing of the department. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved Resolution No. 3187 appointing authorized representatives to approve an execute contracts on behalf of the City of South Bend, Department of Redevelopment related to the operation and maintenance of Blackthorn Golf Course (2014). (4) Resolution No. 3188 setting procedures for Temporary Use Agreements (2014). Mr. Meteiver noted that this is a standard authorization and procedure resolution that the Redevelopment Commission passed over the last several years. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved Resolution No. 3188 setting procedures for Temporary Use Agreements (2014). (5) Resolution No. 3189 setting procedures for property related services (2014). Mr. Meteiver noted that for several years the Commission has authorized staff to approve property related contracts within certain cost limits. This is a standard authorization and procedure resolution as was passed over the last several years. Resolution No. 3189 has been updated to reflect the current staffing of the department. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved Resolution No. 3189 setting procedures for property related services (2014). 6. NEW BUSINESS (CONT.) 16 South Bend Redevelopment Commission Regular Meeting — Thursday, December 12, 2013 G. Other (6) Proposal for Project Assignment with Crowe Horwath to prepare TIF Neutralization Worksheets. Mr. Relos noted that this professional services proposal from Crowe Horwath is to provide services for the annual TIF Neutralization worksheets required by state law. These worksheet calculations are done for each TIF area, and are used to adjust the base value by adjusting for natural growth in property values. For example, if the base value of a TIF was originally $1,000,000, and the area had natural appreciation of 3 %, or $30,000, this amount would become part of the increment captured, unless the base is adjusted. After adjustment, this $30,000 would be added to the base, which would now be $1,030,000, allowing other taxing jurisdictions to maintain their tax base by capturing the natural appreciation of property. Increment captured by the TIF area should be a result of new development, not the natural appreciation in property values that pre- existed the TIF. Staff requests approval of this professional services agreement in an amount of $15,000 plus actual incidental expenses, which is the same cost as the past two years. Incidental expenses have historically been very small, if any at all. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Proposal for Project Assignment with Crowe Horwath to prepare TIF Neutralization Worksheets. H. Ratification of Services Contracts Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Ratification of Services Contracts. 17 Commission Contractor Service Contract Staff Role in Provided Amount Member Transaction Hotel LaSalle Disposition Meridian Title Title work $200 Relos Parking Lot Comm'1 Parking Lot Disposition R.E. Pitts & Appraisal $2,200 Kain (former Baer's Lot) Assoc Comm'1 Parking Lot Disposition Appraisal Appraisal $1,500 Kain (former Baer's Lot) Services Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Ratification of Services Contracts. 17 South Bend Redevelopment Commission Regular Meeting — Thursday, December 12, 2013 6. NEW BUSINESS (CONT.) I. Ratification of Temporary Use Agreement Use /Agency Lot Event Dates of Use Salvation Army Shillings Building, 325 -439 Lafayette Toys for Tots November 14 — December 21, 2013 Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Ratification of Temporary Use Agreement. 7. PROGRESS REPORTS There were no Progress Reports 8. NEXT COMMISSION MEETING The next meeting of the Commission will be its Annual Organizational Meeting, Thursday, January 2, 2014 at 8:30 a.m. The next Regular Meeting of the Redevelopment Commission is scheduled for Thursday, January 16, 2014 at 9:30 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Varner made a motion that the meeting be adjourned. Mr. Inks seconded. The meeting was adjourned at 10:32 a.m. Scott Ford, Executive Director Marcia I. Jones, President NOTICE OF SOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULE OF REGULAR MEETING Pursuant to Indiana Code 5- 14 -1.5 -5 this will serve as notice that the South Bend Redevelopment Commission will reschedule its Regular Meeting of 4:00 p.m., Tuesday, October 16, 2011 to 4:00 p.m., Tuesday, October 23, 2012. This meeting will be held in the I P Floor Conference Room, County -City Building, 227 W. Jefferson Boulevard, South Bend, Indiana. At this Rescheduled Regular Meeting, the Redevelopment Commission will discuss any matters which may properly come before it. Signed this 14'x' day of October, 2012. Marcia I. Jones, President South Bend Redevelopment Commission Mailed this 14"' day of October, 2012. FOR HEARING AND SIGHT IMPAIRED PERSONS Auxiliary Aid or Other Services are Available upon Request at No Charge. Please Give Reasonable Advance Request when Possible. 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