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HomeMy WebLinkAbout10-22-13 Redevelopment Commission Minutes.docxSOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULED REGULAR MEETING Tuesday, October 22, 2013 1:30 p.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Dr. David Varner, Vice President Ms. Valerie Schey, Secretary Mr. Greg Downes Mr. Don Inks Mr. Stan Wruble Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. David Relos, Economic Development Specialist Mr. Brock Zeeb, Economics Resources Director Mrs. Cheryl Phipps, Recording Secretary Mr. Jitin Kain, Director of Planning Ms. Ann Kolata, Brownfields Specialist Others Present: Mr. Scott Ford, Executive Director Mr. Chris Fielding, Assistant Executive Director Ms. Sarah Heintzelman Ms. Angela McCaslin Ms. Mo Miller Mr. Cecil Eastman Ms. Catherine Hostetler, HPC Mr. John Mestor, Bradley Co. Mr. Brad Toothaker Mr. Larry Katz Mr. Richard Nussbaum Mr. Erin Blasko, South Bend, Tribune Mr. Mark Peterson, WNDU -TV Mr. Eric Walton, WNDU -TV Cameraman Ms. Denise Bohn, WSBT -TV WSBT -TV Cameraman 1 South Bend Redevelopment Commission Regular Meeting — Tuesday, October 22, 2013 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, June 16, 2013 Upon a motion by Ms. Schey, seconded by Mr. Inks and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Thursday, October 10, 2013. 3. APPROVAL OF CLAIMS 324 AIRPORT AEDA AEP Christopher B. Burke Engineering, LLC Heppenheimer and Korpal Hull & Associates Inc. Legal Dept. 165,000.00 Union Station 7,154.50 Crooked Ewe Sidewalk 750.00 Securing Tax Title Deeds (3) Parcels of Real Estate 3,010.00 Ext. Gen. Cons. /Offsite GWS for VRP -Area C/ install 40,751.25 Legal Services 420 FUND TIF DISTRICT -SBCDA GENERAL Majority Builders 43,133.69 Studebaker Plaza Citizen's Bank & Trust Joseph A. Dzierla & Associates, Inc. 900.00 Architecture & Planning Legal Dept. 13,586.25 Legal Services 426 FUND SOUTH BEND CENTAL MEDICAL DISTRICT The Troyer Group 6,200.00 Window Replacements Gibson - Lewis, LLC 15,282.50 Skyway Plaza Building Window Repl. 430 SOUTH SIDE DEVELOPMENT AREA Lawson - Fisher Associates P.C. 20,585.23 Main St /Lafayette Blvd Connector 316,353.42 Upon a motion by Mr. Inks, seconded by Mr. Downes and unanimously carried, the Commission approved the Claims submitted Tuesday, October 22, 2013. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 2 South Bend Redevelopment Commission Regular Meeting — Tuesday, October 22, 2013 6. NEW BUSINESS A. South Bend Central Development Area (1) Resolution No. 3180 approving and authorizing the transfer of real property to Jenna Hotel Investments LLC. Mr. Relos noted that Resolution No. 3180 approves and authorizes the transfer of property where the Atrium and Doubletree Hotel are located. In 1979, the City obtained an Urban Development Action Grant (UDAG) in the amount of $7,600,000. The UDAG funds, along with $21,960,000 in private funding, allowed the redevelopment of this blighted site into the iconic building that occupies it today. The UDAG funding required the Commission to retain ownership until project completion. Also in 1979, the Commission entered into a Joint Development and Ground Lease Agreement with the respective party (party) for the development of the Office Building, Atrium, and Hotel. Prior to the signing of this Agreement, the property was taken through the disposition process, with no bids being received. In December 2010, the Commission approved a Memorandum of Understanding (MOU) with the party. This MOU required improvements to the building, and upon completion of the improvements and the project overall, transfer of the property to the party. Staff requests approval of Resolution No. 3180 and the transfer of this property to the party. Ms. Schey asked who the Jenna Hotel Investments, LLC entity is. Mr. Nussbaum responded that Jenna Hotel Investments, LLC is the owner of Doubletree Hotel. Subsequent to signing the MOU back in December 2010, Host Hotels, which operated the Marriott, sold to Jenna Investments which operates the Doubletree Hotel. They are the successor in interest to the parry that signed the MOU. Ms. Schey asked if the Redevelopment Commission is transferring ownership to this company. Mr. Nussbaum responded that the land under which the improvements sit is owned by the Redevelopment Commission. As part of the MOU that was entered into in December 2010, the agreement was that when they made all of the promised improvements, the land would be signed over by Quit Claim Deed to the owners. Ms. Schey asked if the Redevelopment Commission paid $6 million for improvements for the parking garage. Mr. Nussbaum responded that the Redevelopment Commission purchased the parking garage for $6.5 million. All of the proceeds went into the improvements that took place at the hotel. There were both private funds and public funds that went into the project totaling approximately $14 million in improvements. Mr. Varner asked if the Redevelopment Commission still owns the parking garage. Mr. Nussbaum responded that it does. South Bend Redevelopment Commission Regular Meeting — Tuesday, October 22, 2013 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (1) continued... Mr. Varner asked if we have an agreement with the hotel for the parking garage maintenance. Mr. Nussbaum responded that we have no maintenance responsibilities for it. Eventually ownership will be passed to the hotel; there are still some obligations that they must meet. Until those obligations are satisfied, the Commission will maintain the parking garage. Mr. Wruble asked how long the lease is for the major tenants that are currently there. Mr. Nussbaum responded that the lease is 10 years from December 2010. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved Resolution No. 3180 approving and authorizing the transfer of real property to Jenna Hotel Investments LLC. (2) Resolution No. 3181 approving and authorizing the transfer of real property to PWA South Bend LP Mr. Relos noted that Resolution No. 3181 approves and authorizes the transfer of property where the Atrium and Doubletree Hotel are located. In 1979, the City obtained an Urban Development Action Grant (UDAG) in the amount of $7,600,000. The UDAG funds, along with $21,960,000 in private funding, allowed the redevelopment of this blighted site into the iconic building that occupies it today. The UDAG funding required the Commission to retain ownership until project completion. Also in 1979, the Commission entered into a Joint Development and Ground Lease Agreement with the respective party (party) for the development of the Office Building, Atrium, and Hotel. Prior to the signing of this Agreement, the property was taken through the disposition process, with no bids being received. In December 2010, the Commission approved a Memorandum of Understanding (MOU) with the party. This MOU required improvements to the building, and upon completion of the improvements and the project overall, transfer of the property to the party. Staff requests approval of Resolution No. 3181 and the transfer of this property to the party. Ms. Schey asked who the PWA South Bend LP entity is. Mr. Nussbaum responded that PWA South Bend LP is the owner of the 1st Source building which was purchased from a company in Minnesota in 2012. They are the successor in interest to the party who signed the MOU. 0 South Bend Redevelopment Commission Regular Meeting — Tuesday, October 22, 2013 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (1) continued... Ms. Schey asked if the Redevelopment Commission is transferring ownership to this company. Mr. Nussbaum responded that the land under which the improvements sit is owned by the Redevelopment Commission. As part of the MOU that was entered into in December 2010, the agreement was that when they made all of the promised improvements, the land would be signed over by Quit Claim Deed to the owners. Ms. Schey asked if the Redevelopment Commission paid $6 million for improvements for the parking garage. Mr. Nussbaum responded that the Redevelopment Commission purchased the parking garage for $6.5 million. All of the proceeds went into the improvements that took place at the Bank. There were both private funds and public funds that went into the project totaling approximately $14 million in improvements, as well as some additional benefits such as 1st Source Bank agreeing to enter into a lease with the owners to continue to stay downtown. Mr. Varner asked if the Redevelopment Commission still owns the parking garage. Mr. Nussbaum responded that we do. Mr. Varner asked if we have an agreement with the hotel for the parking garage maintenance. Mr. Nussbaum responded that we have no maintenance responsibilities for it. Eventually ownership will be passed to the hotel; there are still some obligations that they must meet. Until those obligations are satisfied, the Commission will maintain the parking garage. Mr. Wruble asked how long the lease is for the major tenants that are currently there. Mr. Nussbaum responded that the lease is 10 years from December 2010. Upon a motion by Mr. Downes, seconded b y Commission approved Resolution No. 3181 property to PWA South Bend LP. B. Airport Economic Development Area Mr. Inks and unanimously carried, the approving and authorizing the transfer of real (1) Resolution No. 3179 approving and authorizing the execution of an Addendum to the Master Agency Agreement Amendment #1 (Crooked Ewe Sidewalk Project) Mr. Relos noted that Resolution No. 3179 and the Amendment to the Addendum to the Master Agency Agreement are to support the redevelopment of the old VFW property along the 1000 block of Lincoln Way East into the Crooked Ewe Brewery & Ale House. As a public safety measure, this project will widen the sidewalk, add only one approach to the parking area, and install a 6" curb along the front of the property. South Bend Redevelopment Commission Regular Meeting — Tuesday, October 22, 2013 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (1) continued... On September 12 the Commission approved an Addendum to the Master Agency Agreement, which set the budget at $40,000. On October 17 the Board of Public Works opened quotes to complete this work and they were higher than expected. To be able to award the project, we need to increase the budget approximately $12,000. Staff requests an increase of $15,000 to include a contingency. The Board of Public Works has approved this increase and awarded the project, pending Commission approval. Staff requests approval of Resolution No. 3179 and the Amendment to the Addendum to the Master Agency Agreement, in a new not -to- exceed amount of $55,000. Mr. Varner noted that there is a culvert under Lincolnway East near that property where some capstones are missing. Will those be replaced as part of this project? Mr. Relos responded that there are two or three on the other side of Lincolnway that have fallen into the creek as well. Engineering is looking at replacing them all Ms. Jones asked if the repairs of the capstones will have any additional impact on the budget. Mr. Relos responded that it will not. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3179 approving and authorizing the execution of an Addendum to the Master Agency Agreement Amendment #1 in an amount not to exceed $55,000. (Crooked Ewe Sidewalk Project). (2) Proposal for additional environmental assessment at Oliver Industrial Park. Ms. Kolata noted that the proposal from Hull & Associates outlines a number of activities required by the Indiana Department of Environmental Management as part of the Voluntary Remediation Program process. They include: • Preparation of documents to IDEM including a Comment letter responding to IDEM's 87 comments on our proposed Remediation Work Plan, a Sampling and Analysis Plan, an updated Health and Safety Plan, and an updated Quality Assurance Project Plan. • Additional soil sampling in three areas where IDEM asked for additional sampling. • Installation of temporary and permanent groundwater sampling points within the Oliver Industrial Park as well as up gradient and down gradient of the site. The purpose of the additional groundwater sampling will be to determine the extent (both vertically and horizontally) of chemicals of concern in the groundwater. • Quarterly groundwater sampling and monitoring for eight quarters. 6 South Bend Redevelopment Commission Regular Meeting — Tuesday, October 22, 2013 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (2) continued... • Evaluate ground water sampling results and determine remedies for treating the groundwater. • Restrict groundwater usage through establishment of an Administrative Control Area through the St. Joseph County Health Department. • Use the results of the soil and groundwater sampling to prepare an amended Remediation Work Plan to be submitted to IDEM. The schedule for this work is to have the sampling completed by the end of November and the Amended Remediation Work Plan submitted to IDEM by the end of December. Quarterly groundwater monitoring would not begin until 2014. The total cost of this contract is $194,283. This work has been anticipated for some time. Our Remediation Work Plan was submitted to IDEM in 2011 but we did not receive comments from them until May of this year. We have funds set aside as part of the Studebaker /Oliver project to address environmental concerns including this work and future required remediation. Staff requests approval of this proposal. Ms. Schey asked if the money is coming from Fund 227 for this. Ms. Kolata responded that it is not. There is TIE money from the Studebaker /Oliver budget set aside for this project. Ms. Kolata noted that eventually the DCI Staff will be coming to the Redevelopment Commission with recommendations on the Studebaker site. Staff did not submit a remediation work plan on Studebaker simply because we wanted to see what the reaction was to the methodology. Mr. Inks asked if the original plan didn't require treatment, what was the original plan? Ms. Kolata responded that the original plan from 2011 was to test the ground water and to do approximately two to three rounds of treatment. Mr. Inks asked whether the State's response, then, was to expand the testing. Ms. Kolata responded that it was. What they call "The Nature and Extend" determines how far it extends, where it is, and to do more sampling. There is a caveat that there has not been any ground water testing here since 2011. Of the $194, 283, approximately $93,000 will be used for the quarterly monitoring for eight quarters. Even if there is no treating of the groundwater we have to monitor for eight quarters. Mr. Inks asked if this amount includes the cost of the wells, so there are no additional contracts or funds needed to do anything else. Ms. Kolata responded that this amount 7 South Bend Redevelopment Commission Regular Meeting — Tuesday, October 22, 2013 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (2) continued... includes the wells, time already spent preparing the report of the 87 comments, and additional ground sampling. It does not include the treatment. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Proposal for additional environmental assessment at Oliver Industrial Park. (3) Memo concerning renumbering of Resolution No. 3170 appropriating funds from the Certified Technology Park Fund for the payment of certain obligations and expenses related to the Certified Technology Park. Mr. Meteiver noted that Resolution No. 3170 which was approved by Redevelopment Commission at the October 10, 2013 meeting used a number that belonged to a different resolution that was approved previously. So staff needs a motion to correct the minutes of the October 10, 2013 meeting and the record indicating the Resolution No. 3170 incorrectly numbered should be Resolution No. 3172. Upon a motion by Ms. Schey, seconded by Mr. Downes and unanimously carried, the Commission authorized the renumbering of the resolution appropriating funds from the Certified Technology Park Fund for the payment of certain obligations and expenses related to the Certified Technology Park to Resolution No. 3172 and directed that the Minutes of the October 10, 2013 meeting be corrected to show the Resolution No. as No. 3172. C. West Washington - Chapin Development Area There was no business in the West Washington Development Area. D. South Side Development Area There was no business in the South Side Development Area. E. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. F. Douglas Road Development Area There was no business in the Douglas Road Development Area. South Bend Redevelopment Commission Regular Meeting — Tuesday, October 22, 2013 7. PROGRESS REPORTS (1) Staff update on the development of Colfax and Hill project. Mr. Kam noted that it's been a few weeks since the DCI Staff brought before the Redevelopment Commission the development team of Colfax Hill Partners, LLC. to develop the Hill and Colfax lot owned by the Commissioners to a mixed use project. Over the last few weeks we've been working with a development team and a consultant who studied the drainage issues on the site because the site does go all the way to Colfax. Staff has a good idea of what will need to be accomplished to solve the drainage problem. In addition to this, it has been discovered that there are two AEP transmission poles in the alley to the west of the site. According to AEP, certain distances need to be maintained between the wires and the buildings. Staff has been working with AEP to resolve how close the building could potentially come to the alley, and we think we have a good resolution. Staff is moving forward on the project, and within the next few weeks, prior to the end of the year, we can bring to the Redevelopment Commission a Purchase Agreement which will detail the developer's commitment and the Commission's commitment towards the project. (2) Staff update on the Hotel LaSalle Mr. Fielding noted that in April 2013 Department of Community Investment acting on behalf of the Redevelopment Commission requested proposals for the renovation of the LaSalle Hotel structure. In May 2013 DCI received proposals from four developers, with one deemed to be unresponsive. The viable proposals are from an Israeli investor called the Engrat Group, to develop the building into dorm -style living for students, Real America, which will develop affordable housing apartment units, and Great Lakes Capital which proposed 59 apartment units, market rate. After a thorough review the Department of Community Investment is recommending to move forward with Great Lakes Capital due to their experience and renovation of with historic structures and the density that they will offer to Downtown South Bend. Part of the proposal would be 23 one - bedroom units, 36 two - bedroom units offering resident storage, a fitness center, and ground and mezzanine level commercial spaces, with price points ranging from $842 -$1360 a month for the apartment. Estimated total investment is $10, 848,000. Staff is currently in negotiations with Great Lakes Capital and hopes to bring back a development contract and purchase agreement at a future Redevelopment Commission meeting with public investment of $1.8 million over the next two years. Great Lakes Capital will be responsible for assisting DCI Staff in developing bid specifications for the work. Board of Public Works will be handling all of the bidding. Great Lakes Capital will serve as construction manager. Mr. Varner asked for a relative timeline. Mr. Fielding responded that staff is hoping to have the development agreement finished within the next 30 -45 days and anticipates construction to start at the end 2013 or beginning 2014. 9 South Bend Redevelopment Commission Regular Meeting — Tuesday, October 22, 2013 7. PROGRESS REPORTS (CONT.) Mr. Downes asked if there will be enough parking to handle the project. Mr. Fielding responded that staff feels there is enough surface parking in the near future to handle the parking that the project demands, using the adjoining lots. Mr. Wruble asked who provided the non - responsive bid. Mr. Fielding responded that it was from an individual from New York. They failed to submit any of the proposal forms, financial documentation, any past experience, resume. What was submitted was a concept idea for the building with no real documentation of viability. 8. NEXT COMMISSION MEETING The Next Regular Meeting of the Redevelopment Commission is scheduled for Thursday, November 14, 2013 at 9:30 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, the meeting was adjourned at 1:55 p.m. "_iz S t Ford, xecutive Director 10 Marcia I. Jones, P dent