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HomeMy WebLinkAbout02-27-14 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING February 27, 2014 9:30 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Dr. David Varner, Vice President Mr. Don Inks, Secretary Mr. Greg Downes Ms. Valerie Schey Members Absent: Mr. Stan Wruble Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. David Relos, Economic Development Specialist Mrs. Cheryl Phipps, Recording Secretary Mr. Jitin Kain, Director of Planning Ms. Debrah Jennings, Property Manager Others Present: Mr. Scott Ford, Executive Director Ms. Beth Leonard Inks, Finance Director Mr. John March,Community Investment Ms. Mo Miller 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, February 13, 2014 Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Thursday, February 13, 2014 3. APPROVAL OF CLAIMS 324 AIRPORT AEDA Grauvogel &Associates 650.00 Ignition Park South 6 South Bend Water Works 1,350.77 401N Bendix Dr& Guard/2721 Kenwood Ave Owners Association At Blackthorn 20,643.75 Payment of Settlement to Replace Trees Killed 1 South Bend Redevelopment Commission Regular Meeting—February 27, 2014 3. APPROVAL OF CLAIMS (CONT.) South Bend Tribune 231.46 Legal Notice Jones Petrie Rafinski 577.50 Ivy Tower environmental Cressy& Everett Management 1,150.00 Bosch Hull &Associates Inc. 28,770.31 Ignition Pk/Oliver Industrial Pk environmental assessment & remediation 420 FUND TIF DISTRICT-SBCDA GENERAL Rose Pest Solution 105.00 LaSalle Hotel South Bend Tribune 115.73 Legal Notice Downtown South Bend 1,215.76 St. Joseph & Main/Jefferson Surface Lots South Bend Water Works 80.00 325 S. Lafayette Blvd 430 SOUTH SIDE DEVELOPMENT AREA Judith M. Staley 400.00 Purchase right-of-way for the fellow St Corridor Improvements Lawson-Fisher Associates 1,045.00 Main St/Lafayette Blvd Connector from Ireland Rd to Chippewa Rd $ 56,335.28 Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Claims submitted February 27, 2014. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Public Hearings (1) Public Hearing on Resolution No. 3200 appropriating tax increment financing revenues from Allocation Area Fund for the payment of certain obligations and expenses related to the Northeast Neighborhood Development Area Allocation Area. Mr. Relos noted that the public hearing file is complete, containing a copy of Resolution No. 3199 determining to make the appropriation and setting the public hearing on Resolution No. 3200; a copy of the Notice of Hearing; a copy of Resolution No. 3200, the subject of the public hearing; an affidavit from Kim Wilson, President & Publisher of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on 2 • South Bend Redevelopment Commission Regular Meeting—February 27,2014 6. NEW BUSINESS (CONT.) A. Public Hearings (1) continued... February 7, 2014; an affidavit from Jason Jolly, Classified Manager of the Tri-County News, that the Notice of Hearing was published in that newspaper on February 7, 2014. Mr. March explained that the 2014 appropriations for each of these TIF areas was made October 10,2013 so the amount of the appropriation was an estimate of what revenues would be received from the tax collection. The revenues were larger than expected; also, there were some projects that were in the budget for 2013 that did not get started, so the funds for those projects were not spent. The additional tax distribution and the unused 2013 project funds account for these supplemental appropriations in the Northeast Neighborhood Development Area and the Douglas Road Development Area. Resolution No. 3200 increases the budget for the NNDA by$450,000. The money will be used for Eddy Street Commons utilities. Ms. Jones opened the public hearing on Resolution No. 3200 for whoever wished to speak. There was no one who wished to speak. Ms. Jones closed the public hearing for whatever action the Commission wished to take. (2) Public Hearing on Resolution No.3201 appropriating tax increment financing revenues from Allocation Area Fund for the payment of certain obligations and expenses related to the Northeast Neighborhood Development Area Allocation Area #2. Mr. Relos noted that the public hearing file is complete, containing a copy of Resolution No.3199 determining to make the appropriation and setting the public hearing on Resolution No. 3201; a copy of the Notice of Hearing; a copy of Resolution No. 3201, the subject of the public hearing; an affidavit from Kim Wilson,President&Publisher of the South Bend Tribune,that the Notice of Hearing was published in that newspaper on February 7, 2014; an affidavit from Jason Jolly, Classified Manager of the Tri-County News, that the Notice of Hearing was published in that newspaper on February 7,2014. Mr. March noted that the Northeast Neighborhood Development Area Allocation Area#2 is what we call the Residential TIF area. Resolution No. 3201 allocates $260,000 to be used for the Second Amendment with Kite for right of way. Ms. Jones opened the public hearing on Resolution No. 3201 for whoever wished to speak. There was no one who wished to speak. Ms. Jones closed the public hearing for whatever action the Commission wished to take. 3 South Bend Redevelopment Commission Regular Meeting—February 27, 2014 6. NEW BUSINESS (CONT.) A. Public Hearings (3) Public Hearing on Resolution No.3202 appropriating Tax Increment Financing revenues from Allocation Area No. 1 Fund for the payment of certain obligations and expenses related to the Douglas Road Economic Development Area Allocation Area No. 1. Mr. Relos noted that the public hearing file is complete, containing a copy of Resolution No. 3199 determining to make the appropriation and setting the public hearing on Resolution No. 3202; a copy of the Notice of Hearing; a copy of Resolution No. 3202,the subject of the public hearing; an affidavit from Kim Wilson,President&Publisher of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on February 7, 2014; an affidavit from Jason Jolly, Classified Manager of the Tri-County News, that the Notice of Hearing was published in that newspaper on February 7, 2014. Mr. March noted that Resolution No. 3202 allocates $50,000 for developing plans for turn lanes from S.R. 23 onto Douglas Road. Ms. Jones opened the public hearing on Resolution No. 3202 for whoever wished to speak. There was no one who wished to speak. Ms. Jones closed the public hearing for whatever action the Commission wished to take. (4) Consideration of Resolution No.3200. Upon a motion by Mr. Inks, seconded by Mr. Downes and unanimously carried,the Commission approved Resolution No. 3200 appropriating tax increment financing revenues from Allocation Area Fund for the payment of certain obligations and expenses related to the Northeast Neighborhood Development Area Allocation Area. (5) Consideration of Resolution No. 3201. Upon a motion by Mr. Inks, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3201 appropriating tax increment financing revenues from Allocation Area Fund for the payment of certain obligations and expenses related to the Northeast Neighborhood Development Area Allocation Area#2. (6) Consideration of Resolution No. 3202. Upon a motion by Mr. Inks, seconded by Mr. Downes and unanimously carried,the Commission approved Resolution No. 3202 appropriating Tax Increment Financing revenues from Allocation Area No. 1 Fund for the payment of certain obligations and expenses related to the Douglas Road Economic Development Area Allocation Area No. 1. 4 South Bend Redevelopment Commission Regular Meeting—February 27, 2014 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) Operation,Maintenance and Easement Agreement Estoppel related to Jenna Hotel (Doubletree Hotel) Mr. Nussbaum explained items 6.B.(1) and 6.B.(2)together. The Operation,Maintenance, and Easement Agreement Estoppel is related to the parking garage; and the Construction, Easement, Restriction and Operating Agreement Estoppel is related to the walkway connecting the Doubletree Hotel to the Century Center. Mr.Nussbaum noted that when this property has a change of ownership or has a refinancing, these estoppels are a representation that to the Commission's knowledge, neither of the agreements mentioned above are in default. The major improvements at the downtown Doubletree have been completed, so the property is being refinanced. In support of that . refinancing, the Commission is being asked by the lender to sign the two estoppels. Neither agreement has a financial impact on the Commission,nor are any terms changed. The Commission is a party to these estoppels because it is the owner of the parking garage, though it has no maintenance or operational responsibilities. Because the Commission was the ground lessor at the time of the walkway agreement(1987),we remain a party to the agreement and therefore need to sign the Estoppel. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried,the Commission approved the Operation, Maintenance and Easement Agreement Estoppel related to Jenna Hotel (Doubletree Hotel) (2) Construction,Easement, Restriction and Operating Agreement Estoppel related to Jenna Hotel (Doubletree Hotel) Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Construction, Easement,Restriction and Operating Agreement Estoppel related to Jenna Hotel(Doubletree Hotel) (3) Resolution No. 3208 approving and authorizing the execution of an Addendum to the Master Agency Agreement(Wayne Street Parking Garage Facade) Mr. Relos noted that Resolution No. 3208 authorizes an Addendum to the Master Agency Agreement with the Board of Public Works, allowing the BPW to contract with Alliance Architecture to provide engineering, design,bid specifications and construction oversight for the Wayne Street parking garage, located at the northwest corner of St. Joseph and Wayne. This garage has a history of its brick veneer delaminating and falling to the ground. Over the years the loose brick has been removed,but each year what was once securely attached becomes loose. This proposal should resolve this issue permanently. 5 South Bend Redevelopment Commission Regular Meeting—February 27, 2014 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) continued... The project is expected to be addressed in two phases. Phase 1 will be to remove the pre- cast cement panels the brick veneer is attached to in 2014. Phase 2 will then be to enhance the garage with a newly designed and installed façade in 2015. These two phases will each need to be engineered and designed,have construction documents written,be put out to bid and awarded, and have construction oversight. Carl Walker,who has provided the City parking garage services in the past,will be an as-needed sub-consultant on the project. Alliance's professional services contract is in the not-to-exceed amount of$60,900(fee plus expenses) and will be subject to approval of appropriations within the Parking Garage Fund. Staff requests approval of Resolution No. 3208. Mr. Downes asked if there is any anticipation that there might be more serious structural issues. Mr. Relos responded that there is not. Those panels are just bolted on. The problems are normal maintenance issues. Mr. Varner noted that the letter to Alliance Architects states that the project budget is expected to be$650,000. He asked if it is really necessary to spend$650,000 for new a brick façade for that garage. Is there a cheaper solution? Also,the north and west sides of the garage are fairly obscured from public view. We should not need as expensive a fix to those sides. Mr. Relos agreed. Alliance will suggest options for the finish. We don't expect to put new brick panels on. $650,000 is a generous estimate. It should not cost that much. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved Resolution No. 3208 approving and authorizing the execution of an Addendum to the Master Agency Agreement at a cost not to exceed$60,900(Wayne Street Parking Garage Façade) C. Airport Economic Development Area (1) Proposal to amend existing Weaver Boos environmental services contract for the Ivy Tower renovation project. Mr. Dressel noted that on July 23, 2012 the Commission approved a contract with Weaver Boos Consultants for environmental services related to the ongoing Ivy Tower renovation project, including the abatement of polychlorinated biphenyl(PCBs) and lead based paint. Additional services are needed as follows: 6 South Bend Redevelopment Commission Regular Meeting—February 27, 2014 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (3) continued... • Additional environmental remediation to address PDB impacted concrete surface and soil, including additional testing, EPA notification and report preparation, and bid spec preparation and contractor oversight resulting from a PCB spill identified prior to transformer removal. • Additional bid specification preparation and project management activities associated with asbestos and lead based paint abatement. • Additional project management time associated with off-and on-site project meetings,pre-bid meetings; and additional inspections of the building. The additional cost for these services is$69,000,bringing the total contract amount to $267,720. Staff requests approval of the amendment to contract. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried,the Commission amended the Weaver Boos environmental services contract for the Ivy Tower renovation project. D. West Washington-Chapin Development Area There was no business in the West Washington-Chapin Development Area. E. South Side Development Area There was no business in the West Washington-Chapin Development Area. F. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. G. Douglas Road Development Area There was no business in the Douglas Road Economic Development Area. 7. PROGRESS REPORTS Tax Abatement: Mr. Meteiver noted that when the state law was changed so that tax abatements in TIF areas no longer had to be first approved by the Redevelopment Commission before being considered by the Common Council, the law stipulated that the Commission must be notified by the Council following approval of its declaratory resolution to give the Commission opportunity to express 7 South Bend Redevelopment Commission Regular Meeting—February 27, 2014 7. PROGRESS REPORTS (CONT.) its opinion at the time the Council considers its confirming resolution. Ms. Hahn reported that a declaratory resolution has been passed by the Common Council for Boyd's Services, 1240 West Thomas Street in the West Washington-Chapin Development Area for 6 years of real property tax abatement. Boyd's Services is renovating an historic building at that location at a cost of $114,255. The building will serve as a crematory and also be used for a storage leasing business for vehicles and equipment. The renovation will help the company retain one job with a payroll of$33,280 and create one job with a payroll of$24,960. Taxes to be abated over the six years are estimated at$9,272; taxes to be paid over the six year abatement are estimated at$13,166. 8. NEXT COMMISSION MEETING The Next Regular Meeting of the Redevelopment Commission is scheduled for 9:30 a.m., March 13, 2014. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, the meeting was adjourned at 9:55 a.m. • •■■• C. ord, Executive Director Marcia I. Jones, Or ident 8