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HomeMy WebLinkAbout2. MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 15, 2008 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Ms. Marcia Jones, President Mr. Greg Downes, Secretary Mr. Hardie Blake, Jr. Mr. Karl King, Vice President Dr. David Varner Mr. Charles S. Leone, Esq. Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs . Jennifer llullingcr, Recording Secretary Mr. Bill Schalliol, Economic Development Specialist Mr. Robert Mathia, Economic Development Specialist Mr. Nicholas Witwer, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mr. Jeff Gibney, Executive Director Mr. "l~om Price_ Mayor's Office Ms. Jamie Loo, South Bend Tribune Ms. Rita Kopala Ms. GlendaRac Hernandez Ms. Linda Wolfson, Community Forum for Economic Dev Mr. LaRue Petty Ms. Christina Carroll Mr. Dave Brenner Mr. Rich Bcllis Mr. Philip Paccenda Mr. Mark Seaman Ms. Donna King Mr. Christian Davey Mr. Richard Nussbaum Mr. Philip Byrd, South Bend Heritage Fowldation 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, August 1, 2008. South Bend Redevelopment Commission Regular Meeting -August 15, 2008 2. APPROVAL OF MINUTES (CONT.) A, continued... Upon a motion by Mr. Downes, seconded by Mr. 131ake and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, August 1, 2008. 3. APPROVAL OF CLAIMS COMM1SS70N APPROVGD TIIH MINUItiS OP "II IG Rf.cui.Fla MrenxG or Famnv, Aucusr I, 2008 Redevelopment Commission Claims submitted August 15, 2008 for approval. 305 FUND SBCDA BOND ADG Sign Designs ~I he ~I-coyer Group Parade RenovationJRehabilitation to the 3,586.68 101 N Michigan St. building 505.00 Michigan St. Improvements Project Sign 1,728.04 SB-Michigan St. Strectscape Improv.PH I 324 AIRPORT AEDA Indiana Michigan Power Indiana Michigan Power DNA Wightrnan Petrie Abonmarche Jerome E. Michaels, MAI Jerome E. Michaels, MAI Jerome G. Michaels, MAl Ralph D.Lauvcr Ralph D. Lauver ZPDA ZPDA Trans Tech I?lectric, L.P. City of So. Bend SBD Reprographics R.G. McCloskey & Associates, Inc. 420 FUND "I'IP DIS"1 RICT-SBCDA GENERAL Meridian Title Corp. Abonmarche City of South Bend Indiana Michigan Power SBD Reprographics IYi County News 20.74 19.00 426 S Williams St. Survey -Alley Vacation at Broadway, 2,526.00 Lafayette, Indiana & Franklin St. 275.00 Former EMI Building - 2026 S. Main 4,447.50 U. S. & Adams Road Interchange 2,450.00 Fernando Reshuant 2,450.00 Former Auto "/_one 1033 N. Bcndix Dr. 1,450.00 Appraisal Report Lot ~ Ameritech Dr. 2,500.00 Appraisal of 1007 North Bendix Dr. 2,500.00 Appraisal of 1033 North Bcndix Dr. 20,000.00 Consulting Services 125.33 Copies 774.00 Ameritech at Brick /Cleveland ],536.48 Legal Service 173.12 Western Ave Improvements 1,500.00 Lot 5 Ameritech Drive 1,352,745.00 Acquisition of 401 S Lafayette 2,273.00 Courtyard by Marriott - DTSB Replat 2,085.60 Legal Services 217.33 LaSalle Hotel 237 N Michigan St. 136.04 Gates Chevy World Bldg 60.84 Notice to Bidders/401 W. Western Demo South Bend Redevelopment Commission Regular Meeting-August I5, 2008 3. APPROVAL OF CLAIMS (CONT.) 420 FUND TIF DISTRICT-SBCDA GF,NERAL RE Pitts & Associates Inc. Downtown South Bend, Inc. 1,000.00 Appraisal, Fred's Transmission 16.062.50 422 FUND WES"I~ WASHINGTON CPH Landscape Services So. Bend Trik~une 430 FUND SOU"FH SIDE DEVELOPMENT Brooks Construction 619 BLACKTHORN GOLF COURSE Meadowbrook Golf Group, Inc. 1,270.00 Clean-Up 520 Wayne St. 98.38 Engman Natatorium 171,611.85 Ireland & Miami Intersection 16,000.00 $ 1,612,127.43 Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the Claims submitted August 15, 2008, and ordered checks to be released. 4. COMMUNICATIONS I~here were no Communications. 5. OLD BUSINESS A. Airport Economic Development Area (1) Commission authorization requested to submit Certified Technology Nark Technology Development Grant Fund Application. Mr. Inks asked to combine his explanation o£ item 6.C.(3). a Revised Certified Technology Park App]ication, with consideration of the Development Grant Fund Application. The grant fund application is now wrapped into the Certified Technology Park Application. There was no objection. 6.C.(3) Commission approval requested Blackthorn Golf Course Management COMMISSION APPROV6D'tllli CLAIMS SU13MIl"tED AUGUST 1 $, ?008, nND ORDIRGD TI ili CHISCKS'IY> BG RGLGASI'D THERf? WGRIi NO C0~1MU~ICA"IIOtiS South Bend Redevelopment Commission Regular Meeting -August 15, 2008 for Revised Certified Technology Park Application. Mr. Inks noted that there is no change in scope or substance of the Certified Technology Park concept. What we have done is update the application to reIlect discussions with the Indiana Economic Development Corporation (IEDC), such as minor boundary modifications. We have organized and tried to tie together the various sections of the application and added the grant fund application so that all of the relevant documents are in one package for the IEDC to consider. Mr. Inks reviewed the changes to the application. There is a new "liable of Contents. There is a new section for the park location and geography, showing new maps of the campus site. The campus site no longer includes the hotels and most of the retail in Eddy Strcct Commons. The IEDC had issues with the inclusion of those venues. The boundary modifications remove all of the Eddy Street Commons project except an office building with ground floor retail at the southwest corner of F,ddy and Angela. That ground floor retail will remain within the tech park boundaries. All of the other boundaries of the tech park remain the same, including the twelve acre campus site across Edison from campus. "fhe technology park stretches down in front of Eddy Street Commons and picks up the office building at Eddy Street Commons and the medical building adjacent to Eddy Street Commons. We are now referring to the Studebaker Industrial Park site in the Certified Technology Park as the Sample Street site. Attachment D has an updated pro forma, 4 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 which updates costs, including the Certified Technology Park Operating Urant Funds and debt service for the building construction. Attachments F and G arc also new. They are support letters from the University of Notre Dame and the City of South Bend. Notre Dame agrees to spend $I SM to complete Phase I, including any IEDC grants. The university will also be providing ]and, and underwriting the operation of the facility and staff for the park. In the city's letter of support, the city commits to providing infrash~ucture on the campus site (the Eddy Strcct Commons improvements on Edison, Napoleon, Eddy St, all of the utilities and road work to be going in there). The city's commitment doesn't represent new dollars, but it does represent city investment that will benctit the new Certified Technology Park. In addition to that, the application references the Sample Street site, the $11.SM already spent to date for acquisition, clearance and remediation, and note that an additional $6M-9M will be spent in that area to complete those efforts. flttachment H is also new. It is a financial spreadsheet summarizing the city s support. Attachment I is the grant fund application. "1~hat application requests $2M in capital funds and $2M in operating hands from IEDC. It notes that estimated jobs for Building One will be 120 with estimated salaries averaging $50,000 for a total of approximately $6M in salaries. It has a description of the first building, which will be 54,000 sft, costing $l3M for the building and $2M for furniture and equipment. Mr. Blake asked about thc'`one park" and the 5 South I3cnd Redevelopment Commission Regular Meeting-August 15, 2008 non-profit company that is being set up. Will there be one owner or two owners? Mr. hlks responded that there will be two owners. The University of Notre Dame will own the land related to the campus site, across from the university. The city currently owns and will continue to own the land in the Sample Street site. Mr. Blake asked ~~hat the non-profit company will own. Mr. Inks responded that the non-profit will lease the assets from the university, but not the land at Sample Street site. The non-profit company will provide services to the Sample Street site, however. Upon a motion by Mr. Downes, seconded by Mr. F31ake and unanimously carried, the Commission approved the Rcviscd Certified Cechnology Park Application and authorised submission of the Certified Technology Park Technology Development Urant Fund Application. 6. NEW BUSINESS A. Tax Abatemc~ts (1) Commission approval requested for Resolution No. 2488 approving an application for personal property tax deduction for property located at 1827 North 13endix Drive in the Airport Economic Development Area. (Mann + Hummel USA) Mr. Mathia gave the staff report on the project. Mann + IIummcl USA manufactures various products for the automotive industry. "the products are made of nylon and plastic and are manufactured using injection molding. Mann + Ilummcll plans to install COMMISSION APPROVED ll Ili Rh;VISGD CLRIIFiLD TIfC11NOLOGY PARK APPLICATION AND AUT}IORIlIiD SUL3MISSION OP ll IL? CER'I~IFI[D ~I~IiCHNOLOGY PARK ~I1:CHNOLOGY UliVIiLOPMIiN'P GRAN'1~ FUND APPLICATION C South Bend Redevelopment Commission Regular Meeting-August 15, 2008 machinery and equipment costing approximately $2,000,000 which will be used to manufacture manifolds and air intake systems for General Motors and 'Toyota. It is estimated that the total project will create Tour new permanent, full-timejobs within the first year, representing a new annual payroll of $120,000. The project will retain one hundred fifty-Tour existing full- time jobs, of which 46 are minority employees, with an annual payroll of $4,500,000. Mann + Rummell was granted five previous tax abatements from 1991 to 2005. The property is properly zoned for the proposed use. The property is located in the Airport Iiconomic Development urea which is a Tax Increment Financing Allocation hrea; therefore, the petition for personal property tax deduction must first be approved by the South Bend Redevelopment Commission. 1'he project qualifies for five years of personal property tax deduction under the tax abatement ordinance. Based on a project cost of $2,000,000, the total taxes to be abated during the five year abatement period are estimated at $18,329. New tax revenue resulting from the project is estimated to total $122,922 over the five year abatement term, while total taxes to be paid during the abatement period are estimated at $585,294. Upon a motion by Mr. Blake, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2488 approving an application for personal property tax deduction for property located at 1827 North Bendix Drive in the nirport COMMISSION APPROVI[D RESOLU"fION N0.2488 APPROVING AN APPLICA"IION POK Pk~:RSONAL PROPF;R~IY'fAX DI:DUCI'ION POR PROPI?RlY LOCATED AT 1827 NORTI I (3ENDIX DRIVE IN TI Ili AIIZPORI~ ECONOMIC DGVLLOPMI[NT AREA. (MANN+ HUMMI~;L USA) 7 South Bcnd Redevelopment Commission Regular Meeting -August 15, 2008 Economic Development Area. (Mann + Hummel USA) (2) Commission approval requested for Resolution No. 2493 approving an application for real property tax deduction for property located at Edison Road adjoining Twyckenham Drive extension on State Road 23 in the Northeast Neighborhood Development Area. (University of Notre llame Innovation Park at Notre llame, Inc.) Mr. Mathia noted that after packets were distributed, the University of Notre Dame submitted new information with which they co~ild qualify for ten years of tax abatement, so a substihrte resolution was presented requesting len years of abatement IIowevcr under the new model we are using since HEA 1001, nine years of abatement provides a greater savings than does ten years. Staff would like the Commission to approve the ten years of abatement which will give Innovation Park the maximum ^exibility as the request goes before the Common Council. Mr. Mathia gave the staff report on the project. 1'he University of Notre Dame and Innovation Park at Notre Dame, Inc. arc proposing to establish a Certified "1`echnology Park. The park will include the construction of four buildings over a ten year period on an approximately 12-acre site, with construction to begin on the first building (Phase I) in early fall 2008. The Master Plan for the park anticipates three additional buildings to be phased in between 2010 and 20] 8. "the first building will be the main gathering area for the park and provide most of the essential common areas including conference facilities 8 South Bend Redevelopment Commission Regular Meeting -August l 5, 2008 and training resources. Phase [will comprise a facility of approximately 54,000 sq. ft. on three levels. The reception area, administration space and "Greenhouse" incubator facility (approximately 6,000 sq. ft.) will be on the first level. The second and third levels will be designed as "build-to- suit" tenant areas for general office space and dry or wet lab configurations. 1'he remaining three buildings (Phases II to IV) will provide approximately 146,000 additional square feet of space. They will be primarily used for client/tenant space. 'l~he buildings and equipment will be owned by the university and leased to Innovation Park. The mission of the park is to transform research into marketable enterprises. "The park will accomplish this by providing convenient access to flexible space, administrative services, and Internet connectivity in combination with the active engagement of expert technical support, professional business advice and introduction to private risk capital sources. At the same time, the park will not actively provide the means to advance basic research off campus, or to seek to become along-term landlord. Instead, the park will encourage an accelerated exploration of potential commercial applications, leading to the eventual transplantation of these enterprises into the park's extension at Innovation Park nt Notre llame nt Sample Strcct (i.e. Studebaker Corridor) and other areas. The estimated cost for construction of the four buildings in Phases I to IV is $10,000,000 - $60,000.000. The new equipment to be installed on the site has a total estimated cost of no Icss than 9 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 $500,000. It includes equipment to serve the park's tenant-clients in order to facilitate acceleration of their business potential It is anticipated the tenant-clients will also install equipment used in their individual ventures. This equipment will include such items as specialized bench equipment for wet or dry lab applications. Gxamplcs of this equipment may include optical microscopes, probe stations, gas chromatographs, mass spectrometers, centrifuges, chemical hoods, vacuum pumps and similar equipment. This equipment is essential to demonstrate proof of concept for a particular new product or process prior to the completion of a business plan for normal market entry. All of this equipment will be housed in the facilities to be built at the Innovation Park at Notre llamc. Due to the speculative nature and current timing of the project, there are several unknowns at this time. Therefore, the exact length of the tax abatement term cannot be determined at this time. It is estimated that the term will be a minimum of six vears and a maximum of nine years. Assuming a total project cost of $60,000,000 for the four buildings, total taxes to be abated during asix-year abatement period for the real property arc estimated at $5,478,762. Total taxes to be paid during the six-year abatement period arc estimated at $5,421,901. Again, assuming a total project cost of $60,000,000 for the four buildings, total taxes to be abated during anine-year abatement period for the real property are estimated at $7.605,694. Total taxes to be paid during the nine-year abatement period are estimated at $8,745,301. Por a ten year abatement, total taxes to be abated during a 10 South Bend Redevelopment Commission Regular Meeting-August 15, 2008 are estimated at $7,521,532. Total taxes to be paid during the ten-year abatement period are estimated at $10,646.259. Total taxes to be abated during the five-year abatement period for the personal property are estimated at $19,550. Total taxes to be paid during the five-year abatement period for the personal property arc estimated at S 15,763. It is estimated that the project will directly create seventeen to seventy-seven new permanent, full-time jobs and one part-time job over the project's ten-year development period, representing a new annual payroll of approximately $1,150,000 to $4,150,000. The total possible gains in employment resulting [i~om firms created at the park cannot be estimated at this time. The property is properly zoned for the proposed use. The property is located in the Northeast Neighborhood Development Area; therefore, the petitions for real and personal property tax deduction must first be approved by the Rcdcvclopment Commission. 1~he project meets the qualifications for a five-year personal property tax abatement under the tax abatement ordinance. "l~he project does not meet the qualifications for a real property tax abatement, however, the "fax Abatement Ordinance provides for an exception to the general standards, at the Common Council's discretion. The Rcdcvclopment Commission has been asked to approve the five-year personal property tax deduction and up to a ten-year real property tax deduction as a special exception, subject to approval by the South Bend Common Council. 7~hc Commission has also South Bend Redevelopment Commission Regular Meeting-August 15, 2008 been asked to approve an extension of the Economic Revitalization Area designation from two years to ten years for both the real and personal property abatements. Mr. Faccenda clarified that this project requested tax abatement for the portion of the Certified Technology Park that isjust south of the university. The tax abatement(s) will not be for the Sample-Street portion. Also, this project is not part of the Eddy Street Commons project, nor is it part of the residential TIF area. There are outstanding bonds for that residential 1~IF area. This project does not affect that Also, this project is not directly linked to the MIND project that will be located on the campus of Notre Dame, though we hope the technology park will receive benefit from the activities of MIND. Mr. I3rcnncr explained that basic research will continue on the campus of the University of Notre llame. "fhe Innovation Park south of campus is transformational space where companies arising Isom Notre Damc research, or from the community, or from around the country can get incubator space for their start-up companies. Mr. llownes noted that the jobs that arc being anticipated in the tai abatement are only jobs in the Innovation Park, not any jobs that may spin off from the research, which could be htmdreds, if not thousands of jobs. Mr. Inks noted that Commissioner Varner was unable to attend this meeting, but wanted to present his concerns. A letter expressing those concerns was distributed to Commissioners. Mr. Inks noted that Mr. Varner totally supports the Innovation Park, 12 South Bend Redevelopment Comnssion Regular Meeting -August 15, 2008 but had some questions about whether it should receive tax abatement. Many of these concerns are outside the purview of the Commission, but will be things the Council needs to consider before approving these tax abatements. Ms. Jones asked for clarification about the issue of revenues in the TIT district not being negatively impacted by this tax abatement. She noted that the responsibility of the Redevelopment Commission in approving a tax abatement is to recognize and ascertain whether there are adequate funds within the TIF district for any outstanding bonds. Mr. Inks responded that the Commission has not planned on the revenues coming off of this project as a part of the Northeast Neighborhood Development Area TIF. The project is adjacent to a residential TIP area that is the Triangle Development and Eddy Street Commons, coming down to five-points and Eddy. But this project is outside that residential "f1F boundary. Therefore, the project's tax abatement would have no impact on that project area or the bonds outstanding there. Construction of the technology building was not planned to be part of the revenue source for development in the NNDA. Ms. Jones noted that the Commission's concern is simply whether the TlI district can afford to allow the tax abatement. "fhe Commission doesn't have the information to address the other concerns Mr. Varner has. The Common Council is responsible to consider those other issues. Ms..iones said she understands the concerns expressed in Mr. Varner's letter. With his Common Council member hat on, he will address those concerns. 13 South Bend Redevelopment Commission Regular Meeting -August 1 ~, 2008 Ms. Jones asked the impact of the Innovation Park receiving 501 c(3) designation. Mr. Paccenda responded that SOIc(3)s can have taxable activities. It wouldn't affect the real estate taxes for the Innovation Park, nor the tax abatement. Mr. Gibney noted that this project complements the very sizable residential and retail development at Eddy Street Commons. The buildings will be very handsome, very professional The Mayor supports this tax abatement. Mr. Blake voiced Mr. Varner's concern that this development may require additional inii-astructure that the rest of the city ends up paying for. Mr. Gibney responded that the concern is unfounded because the university is paying for this development. The city is not incurring infrastructure costs for this development. Mr. I31akc asked if this project is in more than one TIP area? Mr. Inks responded that it is only in the Northeast Neighborhood Development Area (NNDA)TIP. Mr. I31ake referred to the portion of the tax abatement report that talks about the project needing to qualify for tax abatement as an exception. He asked if that portion of the report is where the report states that the project wouldn't be getting inliastruchire from the city. Mr. Inks responded that this will be one of the more confusing areas of fIF in all of our economic development/ redevelopment areas. "the NNDA includes two TIP allocation areas. One is the residential TIF which is supporting the L',ddy Strcct Commons and Triangle development 14 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 area. "That area has outstanding bonds. The remaining part of the NNDA is called Allocation Area No. 1. this project is located in Allocation Area No. 1. There is also, under state statute for certified technology parks, an opportunity to create an allocation area for a certified technology park. If we went down that path, it would establish a new allocation area in the NNDA, and could include the Sample Street site also. But we have decided not to create the certified technology park TIP; by not creating a certiled technology park TIF area, we allow any real property increment from the technology park to support the broader NNDA Allocation Area No. 1. Personal property increment has never been collected by the NNDA and cannot be. Ms. Jones asked Mr. Mathia to review the changes that were made in Substitute Resolution No. 2493. Mr. Mathia responded that the term changed from nine years to ten. Separate from Resolution No. 2493, the Commission is asked to approve an extension of the L;conomic Revitalization Area (FRA) designation from two }ears to ten years. The EKA is the time allowed for project construction to be completed and the abatement to begin or else the abatement becomes invalid. "fhcy want to include the entire four-building development in the abatement it may take the ten years to complete all four buildings. Mr. Downes said that he also understands Mr. Varner's concerns, but he urges the Co~mcil to also approve the abatement. He believes the City of South Bend needs to be easier to work with rather than more dif{icult to work with. This is a great project that has the potential for huge wealth creation for 1~ South Bend Redevelopment Commission Regular Meeting -August 15, 2008 residents and tax benefit to the city. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2493 approving an application for real property tax deduction for property located at Edison Road adjoining Twyckenham Drive extension on State Road 23 in the Northeast Neighborhood Development Area. COMMISSION APPKOVED RI:SOLU~IION NO. 2493 APPROb'ING AN APPL]CA'rION POR REAL PIioPEIZTV ~rnx Di=.DUCnoN roa PROruzTv LocATeD rcr GDISON ROAD nD~oiNiN~ TWYCKHNHAM DRIVI'. I~X'rENSION ON STA"LH ROAD 23 m~ TI1I: NORTH u.nsT NiaGi IQORiioon DI:VILOPMI3Nl~ ARIA Upon a motion by Mr. Downes, seconded by ConnMissloN APPROVeD Tnr rxreNSioN or ~n ie Mr. Blake and unanimously carried, the ECONOMIC RrvITALVn~noN ARC.n r-ROM ~rwo Commission approved the extension of the i_o ~n:N venas roa ~n IE PRO~ecr Economic Revitalization Area from two to ten years for the project (3) Commission approval requested for Resolution No. 2494 approving an application for personal property tax deduction for property located at Edison Road adjoining Twyckenham Drive extension on State Road 23 in the Northeast Neighborhood Development Area. (University of Notre Dame Innovation Park at Notre Dame, Inc.) Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2494 approving an application for personal property tax deduction for property located at Ldison Road adjoining Twyckenham Drive extension ou State Road 23 in the Northeast 'Neighborhood Dcvclopment Arca. (University of Notre Dame Innovation Park at Notre Dame, Inc.) B. South Bend Central Dcvclopment Area (1) Commission approval requested f'or Addendum to Contract for professional COMMISSION nPPROVI.D RI-aot_uTION No. 2494 APPROVI'N'G AN APPLICATION I'OR PHRSONAI_ PROPERTY TAX DI3DUCIlON POR PROPERTY LOCHTLiD AT EDISON ROAD ADIOIN ING TWYCKIsNI IAM DRIVIi EXLGNSION ON STAI~G RonD 23 Iz ~rnL: NolrrlnASr NI?IGI usoxrl00D DHVIiLOPM13N~fAREA. (UNIVHRSI'IYOPNO'fRl DAMIS INNOVA LION PARK A"L NOTRI! DAME, INC.) 1( South I3cnd Redevelopment Commission Regular Meeting -August 1 S, 2008 services in the South Bend Central Development Area. (Wightman Petrie, related to demolition of Gates property) Mr. Schalliol noted that the Commission approved a contract with Wightman Petrie on October 5, 2007 for acquisition and demolition services for the Gates Building. We need some additional survey services and demolition administration for an additional cost of $10,800. 1~he total contract would then be $36,000. Staff recommends approving the request for additional services at the tee proposed. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the request for additional services from Wightman Petrie at a cost of $10,800. C. Airport Economic Development Area (1) Commission approval requested for Kesolution No. 2491 related to acquisition of property in the Airport Economic Development Area. (1630 Maplewood) Mr. Witwer noted that 1630 Maplewood is part of the residential that we arc purchasing to eliminate anon-conforming use from the industrial park near Lincolnway and Bendix. Resolution No. 2491 sets the offering price at $78,500, the average of our two appraisals. Resolution No. 2492 approves a counter offer from William and Cheryl Buckles in the amount of $90,000. Staff recommends approval of both resolutions. Upon a motion by Mr. Downes, seconded by YIr. Blake and unanimously carried, the Commission approved Resolution No. ?491 ~-OMMISSION APPROV LD II IIf RIfQUI[Sf fOli nournoNAF, sI:RVICIS rROM W ICI rrMnN PI rau_ ~ r n cos"r or X10,800 COMMISSION nPPROVe~ KesourrroN No. 2491 RGLATED TO ACQUISITION UP PROPHRTY W l'HL AIRPORT F,CONOMIC DFVI?LOPMHN"f ARLA. (160 MAP[_rti~oov) 17 South Bend Redevelopment Commission Regular Meeting -August 1 S, 2008 related to acquisition of property in the Airport Economic Development Area. (1630 Maplewood) (2) Commission approval requested for Resolution No. 2492 approving and accepting a counter of'f'er for the acquisition of property in the A1CDA (1630 Maplewood) Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2492 approving and accepting a counter oiler for the acquisition of property in the AEDA (1630 Maplewood) (3) Commission approval requested for Revised Certified Technology Park Application. This item approved with item S.A.(1) D. West Washington-Chapin llevelopment Area There was no business in the West Washington- Chapin Development Area. E. South Side llevelopment Area There was no business in the South Side Development Area. F. Northeast Neighborhood Development Arca (1) Commission approval requested for Resolution No. 2484 related to acquisition of property in the Northeast Neighborhood llevelopment Area. (1113 & 1117 Burns) Mr. Schalliol noted that 1 113 and 1 117 COMMISSION APPROVED RESOI,u"rION NO. ?492 APPROVfNG AND ACCI:P"I WG A COUNII:R OPFI~:R FOKl~HB ACQUISITION OF PROPERTY IN l'I{F AL DA (1630 MAPi.rwooD) APPROV~~:D wrru rrEM S.A.(1) 18 South Bend Redevelopment Commission Regular Meeting -August ] 5, 2008 Burns are vacant lots in the Phase 1 area of the Triangle Neighborhood Redevelopment Area. The value of these lots owned by R. Glen Goodin and Michael Wankel has been established as the average of two independent appraisals at $11,000. Resolution No. 2484 sets the offering price at $11,000. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2484 related to acquisition of property in the Northeast Neighborhood Development Area. (1 113 & I ] 17 Burns) (2) Commission approval requested for Resolution No. 2485 approving and accepting a counter offer for the acquisition of property in the NNllA. (11]3 & 1117 Burns) Mr. Schalliol noted that Mr. Goodin and Mr. Wankel, after intense negotiation, submitted a counter of-fer in the amount of $65,000. Mr. Schalliol noted that as we get closer to the end of our acquisitions, the remaining property becomes more valuable. There are twelve properties yet to acquire, some of which are Mousing Authority duplexes. Staff recommends accepting the offer. Ms. Jones asked how many more properties we need to buy and whether we have enough money left to buy them. Mr. Schalliol responded that there are twelve more to buy in Yhase I and Phase Il. We do not have enough to buy them all this year. We are to the point where we have to decide which to go after yet this year. We arc also looking for additional, non-city funds with which to continue purchasing. COMMISSION APPROVI'D RESOLUTION NO. ?484 RELATED TO ACQUISITION OP PROVER"I~Y IN l'I IL NORM IEASr NE~G~ If30RHOOD DEV ELOPMGNT AReA. (l l 13 & I i l7 BURNS) 19 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 Upon a motion by Mr. Downes, seconded by COMMISSION nRi~ROVe~ Rr_so~u~noN No. 2485 Mr. Blake and unanimously carried, the ni~NROViNC; nNO nccrsi>~nNC~ n cow~rFR orPi.R roR ~n u. ncQuisiTioN or RROi~r~arrv w ~n ~r Commission approved Resolution No. 2485 NN~A. (1113 ~ 1 117 BURNS) approving and accepting a counter offer for the acgtusition of property in the NNDA (1113 & l l17 Bums) (3) Commission approval requested for Assignment of Interest in Purchase Agreement from the Northeast Neighborhood Revitalization Organization. (1113 & 1117 Burns) Mr. Schalliol noted that the Northeast Neighborhood Revitalization Organization acts as our agent in negotiating the acquisitions and secured a purchase agreement which must be assigned to the city for our closing. Staff recommends approval. Upon a motion by Mr. Downes, seconded by CoMMissioN ni~i~aovi:o ~n ~s AssicNMP:N~r oP Mr. Blake and unanimously carried, the 1N~rr_Res~r iN PuacHnsi. AGREGMGNT rROM ~n o-: NORTI IGAST NEIGIiBOR1100D RI:VITF~LIZA"PION Commission approved the Assignment of oacnNizn~noN. (I 113 & I 1 17 BIiRNS) Interest in Purchase Agreement from the Northeast Neighborhood Revitalization Organization. (1113 & 1117 Burns) (4) Commission approval requested for Rcsolutio^ No. 2486 related to acquisition of property in the Northeast Neighborhood Development Area. (vacant lot 1100 block of S. Bend Ave.) Mr. Schalliol noted that Resolution No. 2486 establishes $6,050, the average of two independent appraisals, as the oflering price for the vacant lot in the 1 100 block of South Bend Avc. Upon a motion by Mr. Downes. seconded by COti1MISSION ni>i~FZOVeo [tesoi.u~noN No. 2486 Mr. Blake and unanimously carried, the R~-~-n~ri:n ~ro nc~uisrnoN or i~ttoi~ei~rv w n u. NORM-^'AST NIIGI IL30RI IOOD DBVP:LOPM1`.NT 20 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 Commission approved Resolution No. 2486 related to acquisition of property in the ~Iorihcast Neighborhood Development Area. (vacant lot, 1100 block of S. Bend Ave.) (5) Commission approval requested for Resolution No. 2487 approving and accepting a counter offer for the acquisition of property in the NNDA. (v/I 1100 block of S. Bend Ave.) Mr. Schalliol noted that a counter offer of $14,500 was submitted by Charles C. Green and Louise Green for the vacant lot. Staff recommends accepting the offer. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2487 approving and accepting a counter offer for the acquisition of property in the NNDA. (v/1 1 l 00 block of S. Bend Ave.) (6) Commission approval requested for Assignment of Interest in Purchase Agreement from the Northeast Neighborhood Revitalization Organization. (vacant lot 1100 block of S. Bend Ave.) Upon a motion by Mr. Downes, seconded by Mr. Blake and wTanimously carried, the Commission approved the Assignment of Interest in Purchase Agreement from the Northeast?yeighborhood Revitalization Organization. (vacant lot 1100 block of S. Bend Ave.) G. llouglas Road Economic Ucvelopment Area There was no business in the Douglas Road Iconomic Development Arca. ARIA. (VACANT LO'L, l 100 BLOCK OP S. BEND Ave.) COMMISSION APPROVfiD RIISOLUTION N0.2487 APPROVING AND ACCIP"rING A COUNll1R OPFtiR POR ll II: ACQUISITION OP PROPERTY IN TI IE NNDA. (V/I, 110013LOCK OP S. BEND AVIL) COMMISSION APPROVLD'rl IE ASSIGNMENT OP INTEREST IN PURCI IASI{ AGREEMENT PRO;vi "L[IG No~rruens~r NfaGiu3oiznooD RevrrAL¢AT~ioN ORGAN V,ATION. (VACANT LOT 1100 I31.OCK OP S. ar-,ND Av~~:.) 21 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 H. Ratification of Service Contracts There were no contracts to be ratified. I. Ratification of Authorization for Temporary Use of Property User/Agency Lot Event Dates of Use Downtown South Fiend, Various locations Art Beat 9/3/08 - 9/5/08 Inc. downtown South Bend Silverhawks Gates parking lot, Parking for Silverhawks Game nights, Western Ave. games remainder of Silverhawks season More Than Conduerors 414 W. Indiana Ave. Back to School Bash 8!9/2008 World Outreach Ministries Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission ralilled the Agreements for Temporary Use of Property listed above. J. Other (1) Commission approval requested for Resolution No. 2490 approving and authorizing fhe execution of an Agency Agreement by and between the South Bend Redevelopment Commission and the City of South Bend, Indiana, Board of Public Works relating to 2008 projects. Mr. Meteiver noted that the Commission owns and desires to demolish the Eckler- Lahey property and Gates Chevy World, Fat Daddies and the Bendix Family Physicians building. Resolution No. 2490 approves an agency agreement with the Board of Public Works Ior demolition of those properties. COMMISSION RATIFILDTIIIC AGRG~MGN~I~S POK TLiM PORARY UsL OI' PROPI',RTY LISTED sAL30VF. 22 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2490 approving and authori?ing the execution of an Agency Agreement by and between the South Bend Redevelopment Commission and the City of South Bend, Indiana, Board of Public Works relating to 2008 projects. 7. PROGRI,SS REPORTS (1) Update on Coveleski Park Plan Mr. Inks noted that at previous meetings the Commission has had some concern about whether the property we are acquiring will fit with the plan we are establishing for the Coveleski Park area. Mr. Schalliol will make a presentation on the plan as a reference for future action. Mr. Schalliol noted that there has been a lot of progress in Coveleski Park over the last several months. Five properties have been purchased: the synagogue, Cleo Washington's property on Wayne and "l~aylor, Gates Chevy World, a property donation on Jefferson, and the I Ienderson property on William St. He showed a graphic of the properties the Commission currently owns and would like to still acquire in the planning area. I~he Board of Public Works opened bids for the demolition of Gates on Monday and awarded a bid iu the amount of $649,000. Demolition will begin within a couple of weeks and will take four to five months. The moving of Gates Toyota to Ireland road offers some additional opportunities for us on that block. I IOK Sport team presented some concepts and reviewed concepts and numbers related to reorientation of the park. IIOK has already done COMMissioN ni~NROVrD RBSOLU~noN No. 2490 APPROVMG AND AUTI-IORIZING l~l11-; 1?XECUTION OP AN AGENCY AGREEMINI~ BY AND BBl WEEN "r11E SOU"rll BEND RfiDl?VI'LOPMIiNI' COMMISSION AND'fnG CITY OP SOU'I~H BEND, INDIANn, BOARD OP PUBLIC WORKS RLLATWG ro2008 i>>zo~ECrs PizocRESS RE~oR~~s 23 South Bend Redevelopment Commission Regular Meeting-August 15, 2008 some facility analysis and will have that analysis available within the next month. One of the city's main goals is to create 360 degree circulation around the Cove, with entrance points into the park from William, Franklin and Monroe. We can't develop a land use plan until we set the parameters for what the ballpark will look like. However, basic land use goals arc to enhance the southern anchor point for the downtown, redevelop vacant or existing non-consistent uses, making land available for new development and revenue generation. The area bounded by Lafayette, Washington, St. Joseph and South Streets offer lilteen acres of land that could be acquired and developed. The plan will address how to build density, how to build connections, how to get people to walk from downtown to the Cove and how the streets should connect. Onc concept that is envisioned is for Franklin Street, Lafayette and William fo offer entrances into park. With Uates gone, that area could provide a new plaza. We arc also thinking of the area bounded by Western, Wayne, William and Taylor as a housing block. It is 2.3 acres. We expect the telecommunications building to remain and one single family house to remain as is. The Commission currently owns 6 parcels and will acquire two more. "faxes payable 2007 were a little over $19,000 for that block. We are thinking of low density housing along William Street and maybe some high density housing. If there were l4 single Family homes built in that block at a value of $110,000, minimum, that would yield at least $]7,000 additional in lases each year, more if the value of the homes was higher. iVlr. Schallio! provided a rough timeline, including additional property acquisition yet this summer. 24 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 Asbestos work on the Gates property is expected to begin Sept 1. Demolition of the Gates building will start in early October, as will site prep on parcels we presently own. By spring 2009 we should see some new construction. Mr. Schalliol indicated that future Commission action will be required to add more properties to acquisition list, acquire those properties, and contract for professional services to move the development along. (2) Council Mr. Inks noted that during its presentation on the real and personal property tax abatements before the Council, staff intends to do a complete presentation to the Council on the Certified Technology Park concept and the application that the city is submitting. 8. NEXT COMMISSION MEETING "The next meeting of the Redevelopment Commission is NexrCoMMissioN Mise~r~No scheduled for Friday, September 5 , 2008 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Ao~ouitrrMe~"t_ Redevelopment Commission, Mr. Blake made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 1 1:23 a.m. Donald E. Inks, Director 25