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HomeMy WebLinkAbout08-15-08 Redevelopment Commission 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: Ms. Marcia Jones, President Mr. Greg Downes, Secretary Mr. Hardie Blake, Jr. Members Absent: Mr. Karl King, Vice President Dr. David Varner Legal Counsel: Mr. Charles S. Leone, Esq. Mr. Lawrence Meteiver, Esq. Redevelopment Staf£ Mr. Don Inks, Director Mrs . Jennifer Hullinger, 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. Tom Price, Mayor's Office Ms. Jamie Loo, South Bend Tribune Ms. Rita Kopala Ms. GlendaRae Hernandez Ms. Linda Wolfson, Community Forum for Economic Dev Mr. LaRue Petty Ms. Christina Carroll Mr. Dave Brenner Mr. Rich Bellis Mr. Philip Faccenda Mr. Mark Seaman Ms. Donna King Mr. Christian Davey Mr. Richard Nussbaum Mr. Philip Byrd, South Bend Heritage Foundation 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. Blake and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, August 1, 2008. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, AUGUST 1, 2008 Redevelopment Commission Claims submitted August 15, 2008 for approval. 305 FUND SBCDA BOND ADG Sign Designs The Troyer Group Facade Renovation/Rehabilitation to the 3,586.68 101 N Michigan St. building 505.00 Michigan St. Improvements Project Sign 1,728.04 SB-Michigan St. Streetscape Improv.PH I 324 AIRPORT AEDA Indiana Michigan Power Indiana Michigan Power DNA Wightman Petrie Abonmarche Jerome E. Michaels, MAI Jerome E. Michaels, MAI Jerome E. Michaels, MAI Ralph D. Lauver Ralph D. Lauver ZPDA ZPDA Trans Tech Electric, L.P. City of So. Bend SBD Reprographics R.E. McCloskey & Associates, Inc. 420 FUND TIF DISTRICT-SBCDA GENERAL Meridian Title Corp. Abonmarche City of South Bend Indiana Michigan Power SBD Reprographics Tri 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 Resturant 2,450.00 Former Auto Zone 1033 N. Bendix Dr. 1,450.00 Appraisal Report Lot 5 Ameritech Dr. 2,500.00 Appraisal of 1007 North Bendix Dr. 2,500.00 Appraisal of 1033 North Bendix Dr. 20,000.00 Consulting Services 125.33 Copies 774.00 Ameritech at Brick /Cleveland 1,536.48 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 Hote1237 N Michigan St. 136.04 Gates Chevy World Bldg 60.84 Notice to Bidders/401 W. Western Demo 2 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 3. APPROVAL OF CLAIMS (CONT.) 420 FUND TIF DISTRICT-SBCDA GENERAL RE Pitts & Associates Inc. Downtown South Bend, Inc. 1,000.00 Appraisal, Fred's Transmission 16,062.50 422 FUND WEST WASHINGTON CFH Landscape Services So. Bend Tribune 430 FUND SOUTH 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 Blackthorn Golf Course Management $ 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 There were no Communications. 5. OLD BUSINESS A. Airport Economic Development Area (1) Commission authorization requested to submit Certified Technology Park Technology Development Grant Fund Application. Mr. Inks asked to combine his explanation of item 6.C.(3), a Revised Certified Technology Park Application, 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. COMMISSION APPROVED THE CLAIMS SUBMITTED AUGUST 15, 2008, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Regular Meeting -August 15, 2008 5. OLD BUSINESS (CONT.) 6.C.(3) Commission approval requested 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 reflect 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 Table 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 Street 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 Eddy 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. The 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 4 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 5. OLD BUSINESS (CONT.) 6.C.(3) continued... Technology Park as the Sample Street site. Attachment D has an updated pro forma, which updates costs, including the Certified Technology Park Operating Grant Funds and debt service for the building construction. Attachments F and G are also new. They are support letters from the University of Notre Dame and the City of South Bend. Notre Dame agrees to spend $15M to complete Phase I, including any IEDC grants. The university will also be providing land, and underwriting the operation of the facility and staff for the park. In the city's letter of support, the city commits to providing infrastructure on the campus site (the Eddy Street 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 benefit the new Certified Technology Park. In addition to that, the application references the Sample Street site, the $ ll . 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. Attachment H is also new. It is a financial spreadsheet summarizing the city's support. Attachment I is the grant fund application. That application requests $2M in capital funds and $2M in operating funds from IEDC. It notes that estimated jobs for Building One will be 120 with estimated South Bend Redevelopment Commission Regular Meeting -August 15, 2008 5. OLD BUSINESS (CONT.) 6.C.(3) continued... 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 $13M for the building and $2M for furniture and equipment. Mr. Blake asked about the "one park" and the non-profit company that is being set up. Will there be one owner or two owners? Mr. Inks 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 what 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. Blake and unanimously carried, the Commission approved the Revised Certified Technology Park Application and authorized submission of the Certified Technology Park Technology Development Grant Fund Application. 6. NEW BUSINESS A. Tax Abatements (1) Commission approval requested for Resolution No. 2488 approving an application for personal property tax COMMISSION APPROVED THE REVISED CERTIFIED TECHNOLOGY PARK APPLICATION AND AUTHORIZED SUBMISSION OF THE CERTIFIED TECHNOLOGY PARK TECHNOLOGY DEVELOPMENT GRANT FUND APPLICATION 6 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) A. Tax Abatements (1) continued... deduction for property located at 1827 North Bendix Drive in the Airport Economic Development Area. (Mann + Hummel USA) Mr. Mathia gave the staff report on the project. Mann + Hummel USA manufactures various products for the automotive industry. The products are made of nylon and plastic and are manufactured using injection molding. Mann +Hummell plans to install 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 four new permanent, full-time jobs within the first year, representing a new annual payroll of $120,000. The project will retain one hundred fifty-four existing full- time jobs, of which 46 are minority employees, with an annual payroll of $4,500,000. Mann +Hummell 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 Economic Development Area which is a Tax Increment Financing Allocation Area; therefore, the petition for personal property tax deduction must first be approved by the South Bend Redevelopment Commission. The project qualifies for five years of personal property tax deduction under the tax 7 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) A. Tax Abatements (1) continued... 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 Airport 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 Dame Innovation Park at Notre Dame, Inc.) Mr. Mathia noted that after packets were distributed, the University of Notre Dame submitted new information with which they could qualify for ten years of tax abatement, so a substitute resolution was presented requesting ten years of abatement. However COMMISSION APPROVED RESOLUTION NO. 2488 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 1827 NORTH BENDIX DRIVE IN THE AIRPORT ECONOMIC DEVELOPMENT UREA. (MANN + HUMMEL USA) South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) continued... 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 flexibility as the request goes before the Common Council. Mr. Mathia gave the staff report on the project. The University of Notre Dame and Innovation Park at Notre Dame, Inc. are proposing to establish a Certified Technology 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 fa112008. The Master Plan for the park anticipates three additional buildings to be phased in between 2010 and 2018. The first building will be the main gathering area for the park and provide most of the essential common areas including conference facilities and training resources. Phase I 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. The 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. The buildings and 9 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) continued... 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 At Notre Dame At Sample Street (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 less than $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 10 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) continued... lab applications. Examples of this equipment may include optical microscopes, probe stations, gas chromatography, 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 Dame. 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 years 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 are estimated at $5,478,762. Total taxes to be >~ during the six-year abatement period are 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. For a ten year abatement, total taxes to be abated during a are estimated at $7,521,532. Total taxes to 11 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) continued... 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 are estimated at $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 from 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 Redevelopment Commission. The project meets the qualifications for a five-year personal property tax abatement under the tax abatement ordinance. The project does not meet the qualifications for a real property tax abatement, however, the Tax Abatement Ordinance provides for an exception to the general standards, at the Common Council's discretion. The Redevelopment Commission has been asked 12 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) continued... 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. The Commission has also 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 is just 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 TIF 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. Brenner explained that basic research will continue on the campus of the University of Notre Dame. The Innovation Park south of campus is transformational space where companies arising from Notre Dame research, or from the community, or from around the country can get incubator space for their start-up companies. 13 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) continued... Mr. Downes noted that the jobs that are being anticipated in the tax abatement are only jobs in the Innovation Park, not any jobs that may spin off from the research, which could be hundreds, 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, 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 TIF 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 TIF area that is the Triangle Development and Eddy Street Commons, coming down to five-points and Eddy. But this project is outside that residential TIF boundary. Therefore, the 14 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) continued... 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 TIF district can afford to allow the tax abatement. The 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. Jones said she understands the concerns expressed in Mr. Varner's letter. With his Common Council member hat on, he will address those concerns. Ms. Jones asked the impact of the Innovation Park receiving SOlc(3) designation. Mr. Faccenda responded that SOlc(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 infrastructure that the rest of the city ends up 15 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) continued... 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. Blake asked if this project is in more than one TIF area? Mr. Inks responded that it is only in the Northeast Neighborhood Development Area (NNDA)TIF. Mr. Blake 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 infrastructure from the city. Mr. Inks responded that this will be one of the more confusing areas of TIF in all of our economic development/ redevelopment areas. The NNDA includes two TIF allocation areas. One is the residential TIF which is supporting the Eddy Street Commons and Triangle development 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 TIF; by not creating a 16 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) continued... certified 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 Economic Revitalization Area (ERA) designation from two years to ten years. The ERA is the time allowed for project construction to be completed and the abatement to begin or else the abatement becomes invalid. They 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 Council to also approve the abatement. He believes the City of South Bend needs to be easier to work with rather than more difficult to work with. This is a great project that has the potential for huge wealth creation for 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 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 l7 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) continued... deduction for property located at Edison Road adjoining Twyckenham Drive extension on State Road 23 in the Northeast Neighborhood Development Area. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the extension of the 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 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.) B. South Bend Central Development Area (1) Commission approval requested for Addendum to Contract for professional ROAD 23 IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT UREA COMMISSION APPROVED THE EXTENSION OF THE ECONOMIC REVITALIZATION AREA FROM TWO TO TEN YEARS FOR THE PROJECT COMMISSION APPROVED 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. 18 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... 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. The total contract would then be $36,000. Staff recommends approving the request for additional services at the fee 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 Resolution 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 are 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 COMMISSION APPROVED THE REQUEST FOR ADDITIONAL SERVICES FROM WIGHTMAN PETRIE AT A cosT OF $10,800 19 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... amount of $90,000. Staff recommends approval of both resolutions. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2491 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 offer for the acquisition of property in the AEDA (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 offer 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 Development Area There was no business in the West Washington- Chapin Development Area. COMMISSION APPROVED RESOLUTION NO. 2491 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT UREA. (1630 MAPLEwooD) COMMISSION APPROVED RESOLUTION NO. 2492 APPROVING AND ACCEPTING A COUNTER OFFER FOR THE ACQUISITION OF PROPERTY IN THE AEDA (1630 MAPLEwooD) APPROVED WITH ITEM S.A(1) 20 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) E. South Side Development Area There was no business in the South Side Development Area. F. Northeast Neighborhood Development Area (1) Commission approval requested for Resolution No. 2484 related to acquisition of property in the Northeast Neighborhood Development Area. (1113 & 1117 Burns) Mr. Schalliol noted that 1113 and 1117 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. (1113 & 1117 Burns) (2) Commission approval requested for Resolution No. 2485 approving and accepting a counter offer for the acquisition of property in the NNDA. (1113 & 1117 Burns) Mr. Schalliol noted that Mr. Goodin and Mr. Wankel, after intense negotiation, submitted a counter offer in the amount of $65,000. Mr. Schalliol noted that as we get closer to COMMISSION APPROVED RESOLUTION NO. 2484 RELATED TO ACQUISITION OF PROPERTY IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT UREA. (1113 & 1117 BURNS 21 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) F. Northeast Neighborhood Development Area (2) continued... the end of our acquisitions, the remaining property becomes more valuable. There are twelve properties yet to acquire, some of which are Housing 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 Phase I and Phase II. 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 are also looking for additional, non-city funds with which to continue purchasing. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2485 approving and accepting a counter offer for the acquisition of property in the NNDA. (1113 & 1117 Burns) (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. COMMISSION APPROVED RESOLUTION NO. 2485 APPROVING AND ACCEPTING A COUNTER OFFER FOR THE ACQUISITION OF PROPERTY IN THE NNDA. (1113 & 1117 BURNS) 22 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) F. Northeast Neighborhood Development Area (3) continued... Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the Assignment of Interest in Purchase Agreement from the Northeast Neighborhood Revitalization Organization. (1113 & 1117 Burns) (4) Commission approval requested for Resolution 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 offering price for the vacant lot in the 1100 block of South Bend Ave. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2486 related to acquisition of property in the Northeast 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/1 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. COMMISSION APPROVED THE ASSIGNMENT OF INTEREST IN PURCHASE AGREEMENT FROM THE NORTHEAST NEIGHBORHOOD REVITALIZATION ORGANIZATION. (1113 & 1117 BURNS COMMISSION APPROVED RESOLUTION NO. 2486 RELATED TO ACQUISITION OF PROPERTY IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT AREA. (VACANT LOT, 1100 BLOCK OF S. BEND AVE. 23 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) F. Northeast Neighborhood Development Area (5) continued... 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 1100 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 unanimously carried, the Commission approved the Assignment of Interest in Purchase Agreement from the Northeast Neighborhood Revitalization Organization. (vacant lot 1100 block of S. Bend Ave.) G. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. H. Ratification of Service Contracts There were no contracts to be ratified. COMMISSION APPROVED RESOLUTION NO. 2487 APPROVING AND ACCEPTING A COUNTER OFFER FOR THE ACQUISITION OF PROPERTY IN THE NNDA. (V/L 1100 BLOCK OF S. BEND AVE. COMMISSION APPROVED THE ASSIGNMENT OF INTEREST IN PURCHASE AGREEMENT FROM THE NORTHEAST NEIGHBORHOOD REVITALIZATION ORGANIZATION. (VACANT LOT 1100 BLOCK OF S. BEND AVE. 24 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) L Ratification of Authorization for Temporary Use of Property User/Agency Lot Event Dates of Use Downtown South Bend, 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 Conquerors 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 ratified the Agreements for Temporary Use of Property listed above. J. Other (1) Commission approval requested for Resolution No. 2490 approving and authorizing 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. 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 for demolition of those properties. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2490 COMMISSION RATIFIED THE AGREEMENTS FOR TEMPORARY USE OF PROPERTY LISTED ABOVE COMMISSION APPROVED RESOLUTION NO. 2490 APPROVING AND AUTHORIZING THE EXECUTION OF AN AGENCY AGREEMENT BY AND BETWEEN THE SOUTH BEND REDEVELOPMENT 25 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 6. NEW BUSINESS (CONT.) J. Other (1) continued... approving and authorizing the execution of COMMISSION aND TxE CITY of SouTx BEND, an Agency Agreement by and between the INDIANA, BOARD of PusEic woxxs REEATING South Bend Redevelopment Commission and To 2008 rROJECTs the City of South Bend, Indiana, Board of Public Works relating to 2008 projects. 7. PROGRESS REPORTS (1) Update on Coveleski Park Plan PROGRESS REPORTS 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 Taylor, Gates Chevy World, a property donation on Jefferson, and the Henderson 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. The Board of Public Works opened bids for the demolition of Gates on Monday and awarded a bid in 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. 26 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 7. PROGRESS REPORTS (CONT.) (1) Update on Coveleski Park Plan HOK Sport team presented some concepts and reviewed concepts and numbers related to reorientation of the park. HOK has already done 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 are 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 fifteen 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. One concept that is envisioned is for Franklin Street, Lafayette and William to offer entrances into park. With Gates gone, that area could provide a new plaza. We are 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. Taxes 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 27 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 7. PROGRESS REPORTS (CONT.) (1) Update on Coveleski Park Plan 14 single family homes built in that block at a value of $110,000, minimum, that would yield at least $17,000 additional in taxes each year, more if the value of the homes was higher. Mr. Schalliol provided a rough timeline, including additional property acquisition yet this summer. 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 NEXT COMMISSION MEET~G scheduled for Friday, September 5 , 2008 at 10:00 a. m. 28 South Bend Redevelopment Commission Regular Meeting -August 15, 2008 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Blake made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 11:23 a.m. ADJOURNMENT _ ~~~ ~ ~ ~. D~~~:~~..inl~; L~ire~.tor. ~ ~ ~+Iar~~a I. James, Frei 29