HomeMy WebLinkAbout03-13-14 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION •
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REGULAR MEETING
March 13, 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
Mr. Chris Fielding, Asst. Exec. Director
Mr. Michael Divita, Community Investment
Mr. Brock Zeeb, Community Investment
Mr. Cecil Eastman, Administration and Finance
Mr. Erin Blasko, South Bend Tribune
Ms. Mo Miller
Kelli Stopczynski, WSBT-TV
Mr. Oliver Davis, South Bend Common Council
Mr. Greg Lorch, Chamber of Commerce
Mr. Mark Peterson,WNDU
Eric Walton,WNDU
Mr. Shawn Lewis, Lippert
2. APPROVAL OF MINUTES
A. Approval of Minutes of the Regular Meeting of Thursday,February 27, 2014
Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the
Commission approved the Minutes of the Regular Meeting of Thursday, February 27, 2014
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South Bend Redevelopment Commission
Regular Meeting—March 13, 2014
3. APPROVAL OF CLAIMS
324 AIRPORT AREA
BSA LifeStructures 26,019.15 Ignition Pk
Richard C.Hamilton 290,000.00 Hamilton Towing for Relocation
Kolata Enterprises LLC 2,760.00 Environmental Remediation Services
324 AIRPORT AREA continued...
St.Joseph County Recorder 340.00 Recording Blackthorn Deeds
St.Joseph County Auditor 85.00 Recording Blackthorn Deeds
Plews Shadley Racher&Braun LLP 30,623.80 Environmental/ARG Corp
Litigation/Bosch/Honeywell/Union Station
Environmental Assurance Comp,Inc. 221.977.38 Environmental Remediation Services
South Bend Water Works 150.73 4212&4224 Fellows St
Jones Petrie Rafmski 1,615.00 Ivy Tower
South Bend Parks&Recreation 2,657.14 Snow Removal
Weaver Boos Consultants 6,136.24 Ivy Tower
Progressive Engineering 3,300.00 Survey Bosch
420 FUND TIF DISTRICT-SBCDA GENERAL
South Bend Water Works 214.53 410 W Wayne
DTSB 18,750.00 Downtown Beautification
Sopko,Nussbaum,Inabnit&Kaczmarek 1,400.00 Legal Services
Dynamic Mechanical Services 165.00 Replaced a Bad Coupler on B&G Pump
South Bend Parks&Recreation 2,657.14 Snow Removal
Rose Pest Solution 105.00 LaSalle Hotel Pest Control
Abonmarche 700.00 Hill Street Improvements
430 FUND SOUTH SIDE DEVELOPMENT TIF AREA#1
DLZ 2,100.00 Fellows St
Christoper B.Burke Engineering 334.73 South Side Corridor Improvements vs Intersection
DLZ 1,960.00 Bowen St. Sidewalk RW
Reith-Riley Construction Co.,Inc. 144,050.33 Main St./Lafayette Connector
Weaver Boos Consultants 4,140.47 Main St./Lafayette Connector
433 REDEVELMENT ADMISNISTRATION GENERAL
Faegre Baker Daniels 1,270.75 Professional Services Rendered thru 1/14
763512.39
Upon a motion by Mr. Downes, seconded by Ms. Schey and unanimously carried, the Commission
approved the Claims submitted March 13, 2014.
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South Bend Redevelopment Commission
Regular Meeting—March 13, 2014
4. COMMUNICATIONS
There were no Communications.
5. OLD BUSINESS
There was no Old Business.
6. NEW BUSINESS
A. South Bend Central Development Area
(1) Agreement for Professional Services by and between the City of South Bend, Indiana
and Jones Petrie Rafinski for Phase II Environmental Assessment (Hill and Colfax
site)
Mr. Kain noted that Jones Petrie Rafinski (JPR)has recently completed a draft of the Phase I
site assessment and concluded that there were limitations in the prior Environmental
Assessment and Remediation work,with most of the work being performed on one of the
three parcels that make up the development site. JPR recommends a Phase II Environmental
Site Assessment which would include soil samplings and groundwater samplings across the
site. Colfax Hill Partners, LLC,the developers for the site,have agreed to split the cost of
the Phase II work equally with the Commission. Staff requests approval of the Professional
Services Agreement in an amount not to exceed$3,545.
Upon a motion by Ms. Schey, seconded by Mr. Inks and unanimously carried,the
Commission approved the Agreement for Professional Services by and between the City of
South Bend, Indiana and Jones Petrie Rafinski for Phase II Environmental Assessment
(Hill and Colfax site)
B. Airport Economic Development Area
(1) Staff update on 1902 Sample St.
Mr. Fielding noted that the former A.J. Wright building has been vacant for approximately
two years. Staff has been working with Garrison, the building owner, the State of Indiana,
and Drew Industries, consisting of two wholly owned subsidiaries, Kenro Incorporated and
Lippert Components for the reuse of the building. These companies represent thirty-one
manufacturing facilities across twelve states with an employment base of over 4,000 in
Elkhart County alone.
Staff is pleased to present negotiated terms under which Lippert, a manufacturer of products
for the recreational vehicle industry, will be extending its footprint in northern Indiana to
include operations at 1902 Sample St. Lippert will be subletting a large space in the
building to a secondary company called National Distribution for a period of years. The
executives of Lippert have submitted a petition for incentives to the City of South Bend and
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South Bend Redevelopment Commission
Regular Meeting—March 13, 2014
6. NEW BUSINESS (CONT.)
B. Airport Economic Development Area
(1) continued...
staff has negotiated a public investment of$250,000 to be used for the purchase of
equipment to be leased back to Lippert for a period of ten years. Lippert submitted the
petition through 2024 pledging to create 380 new jobs with hourly wages ranging upward
from$12.50 with 180 of those jobs to be filled in 2014. In addition, Lippert commits to
investing$2.8M in the space for building upgrades and additional equipment.
Staff is requesting permission to move forward with preparation of a development
agreement committing$250,000 of AEDA TIF funds to purchase the equipment to be leased
to Lippert for a nominal fee after disposition procedures are completed. The Redevelopment
Commission will retain ownership of the equipment through the period of commitment
(2024)and upon proof of satisfying total investment and total job creation,the equipment
will then be sold to Lippert for the sum of$1.00. It is anticipated that the standard clawback
provisions will be included in the development agreement and that the Redevelopment
Commission will retain ownership of the equipment through the commitment period. Staff
will prepare a development agreement to be brought back to the Commission in April.
Mr. Varner commented on the Commission's trend toward purchasing equipment as an
incentive and leasing the equipment to the company. He wondered if that made the
equipment non-taxable,in which case state legislatures should be notified of that trend.
Mr. Fielding agreed that the purchase of equipment is change in policy. Rather than
investing in a privately owned building, investing in equipment and machinery provides
some collateral for the Commission. Should the business either not come through on what it
has promised, or actually close, that asset will be owned by Redevelopment and the public
investment can be recouped. The leased equipment is taxable, so there is no revenue lost to
the state.
Ms. Schey asked for an explanation of"clawback." Mr. Fielding responded that though the
clawbacks have not been negotiated,typically the city receives 1.5 times its investment if
the jobs or investment targets are not met.
C. West Washington-Chapin Development Area
There was no business in the West Washington-Chapin Development Area.
D. South Side Development Area
(1) Resolution No.3209 approving and authorizing execution of an Addendum to the
Master Agency Agreement(Fellows St. Supplement#8)
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South Bend Redevelopment Commission
Regular Meeting—March 13, 2014
6. NEW BUSINESS (CONT.)
D. South Side Development Area
(1) continued...
Mr. Divita noted that Resolution No. 3209 approves an amendment to the Master Agency
Agreement with the Board of Public Works for$926,828 worth of design, coordination,
demolition and construction of proposed improvements to the Fellows Street Project.
$12,306 is for an amendment to an existing agreement with Christopher B. Burke
Engineering to update the maintenance of a traffic plan,revise construction phasing and bid
documents, coordinate utilities, and offer bid services. The additional fee is necessary
because of greater than anticipated coordination with DLZ,the city's property acquisition
agent for this project,with Cardno JFNew,the drainage design consultant, and with Indiana
& Michigan Power regarding movement of utility poles. Additionally, there is a proposed
$2,592 scope of services change with Cardno JFNew allowing them to complete drainage
design work.
The addendum also sets a budget of$12,000 for the demolition of the house and removal of
other site improvements located at 4404 Fellows Street, the future location of a drywell
system that will manage storm water from the project area.
Finally,the addendum sets a budget of$900,000 for construction of a left-turn lane on
southbound Fellows at Ireland Rd. Curbs, sidewalks,trees, and storm water inlets will be
added to Fellows Street between Ireland and Walter. Fellows Street intersections north to
Teri Street will receive pavers to handle storm water and serve as a traffic calming device.
Mr. Divita noted that a full draft of the final construction documents has been completed,
and final revisions are expected to be completed in April. The demolition at 4404 Fellows
will be awarded in April and finished by June. The necessary property acquisitions and/or
construction easements have been completed for nine of the eleven properties in the project
area. Property acquisition is anticipated to be completed by May 1. The project will be bid
this spring and construction is expected to take two to three months. Staff recommends
approval of Resolution No. 3209, including the$926,828 budget.
Ms. Schey asked whether the Commission has provided the Commissioners an itemized
breakdown of the demolition costs. She noted that when the Council allocates money for a
demolition, it is $6,000,not$12,000. She wanted to know why there is such a difference
and whether other items are similarly over-priced. Mr. Divita responded that there is an
itemized list of construction costs, though the Commission has not been provided that list.
There is no such breakdown of demolition costs. The demolition does,however,include
removal of curbs and sidewalks and any underground,hidden substructures. Ms. Divita said
he would provide Commissioners the breakdown of construction pricing.
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South Bend Redevelopment Commission
Regular Meeting—March 13, 2014
6. NEW BUSINESS (CONT.)
D. South Side Development Area
(1) continued...
Mr. Downes made a motion to approve Resolution No. 3209. Mr. Inks seconded. The
motion passed on a vote of four to one. Ms. Schey voted against.
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.
7. PROGRESS REPORTS
Tax Abatement: Mr. Fielding reported that the Common Council passed a designating resolution for
the LaSalle Hotel tax abatement. The confirming resolution will be considered at the next Council
meeting on March 24.
Ms. Schey noted that Billy Casper Golf now has the management contract for Blackthorn Golf
Course. The Commission last fall discussed creating an RFP for competitive bids for management
of the course in March. She talked with Mr. Ford about making sure that gets done.
8. NEXT COMMISSION MEETING
The Next Regular Meeting of the Redevelopment Commission is scheduled for 9:30 a.m., March 27,
2014.
9. ADJOURNMENT
There being no further business to come before the Redevelopment Commission, Mr. Downes made
a motion that the meeting be adjourned. Mr. Varner seconded. The meeting was adjourned at 10:15
a.m.
("4-61%
Sc C. Ford, Executive Director Marcia I. Jones, Pr•si ent
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