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HomeMy WebLinkAbout10-03-08 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING October 3, 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. Karl King, Vice President Mr. Greg Downes, Secretary Mr. Hardie Blake, Jr. Dr. David Varner Members Absent: Ms. Ann Rosen Legal Counsel: Mr. Charles S. Leone, Esq. Mr. Lawrence Meteiver, Esq. Redevelopment Staf£ Mr. Don Inks, Director Mr. Jeff Gibney, Executive Director Mrs . Cheryl Phipps, Recording Secretary Mr. Robert Mathia, Economic Development Specialist Ms. Jennifer Laurent, Economic Development Specialist Mr. Nicholas Witwer, Economic Development Specialist Mr. Jitin Kain, Economic Development Specialist Ms. Debra Jennings, Property Manager Others Present: 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 Ms. Kathy Reddy White Ms. Susan Visser, South Bend Regional Museum of Art Mr. Robert Shields Mr. Charles Lehman, Lehman & Lehman Mr. Jeff Vitton Mr. Matt Cranston Mr. Dale Devon Mr. Matthew Vigneault Ms. Marybeth Saunders Ms. Marika Smith Mr. Joseph Tillman Mr. Michael Guljas, Michiana Regional Airport Mr. Henry Davis Jr., South Bend Common Council South Bend Redevelopment Commission Regular Meeting -October 3, 2008 3. ROLL CALL (CONT.) 2. APPROVAL OF MINUTES Mr. Henry Davis Sr. Mr. Jeff Vitton, Community Development A. Approval of Minutes of the Regular Meeting of Friday, September 19, 2008. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, September 19, 2008. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, SEPTEMBER 19, 2008 Redevelopment Commission Claims submitted October 3, 2008 for approval. 305 FUND SBCDA BOND Reith Riley Construction, Inc. Pinnacle Title Agency, LLC 324 AIRPORT AEDA Meridian Title Corporation Meridian Title Corporation Park Department Indiana Michigan Power Meridian Title Corporation 57,846.64 Michigan St. Improvements 396,734.74 Wire Transfer Key Bank Plaza Purchase 46,183.58 Wire Transfer for Purchase of 1105 Grace St. Terrance Findley, Jr. 90,269.00 Wire Transfer for Purchase 1630 Maplewood Ave 2,320.00 Seasonal Property Maint. 2.90 420 S. Williams 32,547.60 Purchase of South Lot of 1202 S Lafayette 420 FUND TIF DISTRICT-SBCDA GENERAL Ampco System Parking 774.99 Ampco System Parking 854.67 Park Department 72.00 Meridian Title Corporation 400.00 Mathews-Purucker Anella, Inc. 2,407.50 Mathews-Purucker Anella, Inc. 3,000.00 Rose Pest Solutions 93.00 Schindler Elevator Corp 134.91 225 S. Main Street Lot St. Joseph Surface Lot Seasonal Property Maint. 517E & 529 E Colfax, 211 N Hill St, 511 S Main St Fat Daddy's Block of S Michigan First Bank Building Streetscape LaSalle Hote1237 N Michigan St. pest extermination LaSalle Hote1237 N Michigan St. inspection maint. 2 South Bend Redevelopment Commission Regular Meeting -October 3, 2008 3. APPROVAL OF CLAIMS (CONT.) AT&T Indiana Michigan Power 428 FUND AIRPORT 2003 BOND Petty Cash 422 FUND WEST WASHINGTON Park Department Indiana Michiana Power 27.10 LaSalle Hote1237 N Michigan St. security phone 436.60 LaSalle Hote1237 N Michigan St. 139.43 Property Taxes Randell W Flanagan 2616 W Linden Lot Vac. 135.50 Seasonal Property Maint. 16.71 520 W Wayne 430 FUND SOUTH SIDE DEVELOPMENT Park Department 42.00 Seasonal Property Maint Total $ 634,438.87 Upon a motion by Mr. Downes, seconded by Mr. Varner COMMISSION ArrROVED THE CLAIMS and unanimously carried, the Commission approved the susMITTED OCTOBER 3, 2008, AND ORDERED Claims submitted October 3, 2008, and ordered checks THE cHECxs To sE RELEASED to be released 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Tax Abatements (1) Resolution No. 2506 approving an application for real property tax deduction for property located at 1019 Notre Dame Ave in the Northeast Neighborhood Development Area. (Robert J. and Deborah S. Bernhard) Mr. Mathia gave the staff report on the THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS 3 South Bend Redevelopment Commission Regular Meeting -October 3, 2008 6. NEW BUSINESS (CONT.) A. Tax Abatements (1) continued... project. Robert and Deborah Bernhard intend to construct a 3,000 sft, single-family home with four bedrooms, four bathrooms, dining room, den, great room, fireplace and attached two-car garage. The cost of the home will be approximately $450,000. Total taxes to be abated during the five-year abatement period are estimated at $2,216. Total taxes to be paid during the five-year abatement period are estimated at $24,036. The property is properly zoned for residential. The property is located in the Northeast Neighborhood Development Area, which is a tax incremental allocation area; therefore, approval of the tax abatement petition by the Redevelopment Commission is required. The project qualifies for five years of residential tax abatement under the tax abatement ordinance. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2506 approving an application for real property tax deduction for property in the Northeast Neighborhood Development Area. B. South Bend Central Development Area (1) Third Amendment to Lease with Laura Lee's Ms. Jennings noted that Laura Lee's has been leasing space from the Commission at 121 S. Michigan. The lease expired August 31, COMMISSION APPROVED RESOLUTION NO. 2506 APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION FOR PROPERTY IN THE NORTHEAST NEIGHBORHOOD DEVELOPMENT UREA 4 South Bend Redevelopment Commission Regular Meeting -October 3, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued... 2008 and Laura Lee's decided not to renew the lease. However, they requested additional time to move out of the premises. This Third Amendment to Lease extends the lease 90 days, ending November 30, 2008. Terms remain the same. Ms. Jennings noted that we were hopeful that Laura Lee's would remain in the space while they attempted to sell the business and that the business would continue there. That has not happened. Staff recommends approving the amendment to lease. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved the Third Amendment to Lease with Laura Lee's. (2) Staff report and consideration of funding for Improvements at the South Bend Regional Museum of Art. Mr. King disclosed that he is a member of the Century Center Board of Managers. The improvements will be made along the edge of Century Center. He stated that he has no financial interest in Century Center. He serves as a volunteer on the Board of Managers, appointed by Mayor Luecke. Legal counsel has said there is no conflict of interest and Mr. King may participate in discussion and voting on this item. COMMISSION APPROVED THETHIRD AMENDMENT TO LEASE WITH LAURA LEE' S Mr. Inks noted that Century Center opened in 1977, and like most buildings thirty-one South Bend Redevelopment Commission Regular Meeting -October 3, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... years of age, is in need of some maintenance. Several months ago the Redevelopment Commission and the Common Council gave approval to move ahead with a bond to pay for needed improvements. That bond will cover such items as a new boiler and chiller, skylight stabilization, fire and security alarm services, bathroom renovation, and repairs to Island Park. Those improvements will keep the core of Century Center strong, but they will have little visible impact in the downtown. As a part of the same improvement planning process, plans were developed for exterior enhancements to the front of Century Center, including the following: moving Century Center's parking entrance to the south, across from the School Corporation, to improve pedestrian safety and extend the green space; close the circle entrance drive in favor of pedestrian walkways and a smaller, handicap accessible drop-off under the Century Center canopy; create space for up to six sculpture displays, including a focal point of the terminus of Washington Street; add new stairs to the north end of the facility to more directly connect to the river walk and Island Park; and create a small plaza north of Century Center overlooking Island Park and the St. Joseph River. These improvements not only benefit Century Center, but also the Regional Museum of Art and the downtown. The Sculpture Garden will be a significant addition to the museum, which the whole community can enjoy. The downtown 6 South Bend Redevelopment Commission Regular Meeting -October 3, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... benefits by improved access to public space at Century Center and Island Park. On-street parking will help to slow the traffic on St. Joseph Street a bit, making us all feel safer as we try to cross that street. And the green space, from Jefferson to the north end of Century Center will create an environment which supports not only the recent developments which are underway, but also increases the likelihood that we will see residential development in the downtown. Staff recommends funding these improvements. Ms. Visser pointed out on a rendering the location of the Sculpture Garden, along St. Joseph St. from Wayne St. to the north end of Century Center where it turns east toward the river. The sculpture will be located through out the green space, along the walking paths. National, as well as regional, artists will be featured. The sculptures will be changed at least annually, sometimes semi-annually. Mr. Varner expressed his sense that the Commission is going about this in a piecemeal manner. He believes we are accumulating some healthy dollars in this TIF district. He'd rather see this done as part of the bond issue for Century Center, to be paid off over ten years, rather than pay out a million dollars this year. These are capital improvements that have a life span often to twenty years. He said he would eventually like to see the TIF dollars made available to the general budget. 7 South Bend Redevelopment Commission Regular Meeting -October 3, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (2) continued... Mr. Inks responded that we think this project can stand on its own, even if the other improvements don't go ahead. We looked at the budgets and thought we had the cash availability this year to take on this project. The funding for this is the remaining proceeds from the 2003 downtown bond. In effect, these improvements will become part of a bond payment over a period of time. Regular TIF dollars are not being used for the sculpture garden. Upon a motion by Mr. King, seconded by Mr. Downes and unanimously carried, the Commission approved funding for Improvements at the South Bend Regional Museum of Art. (3) Contract with JJR, LLC for Phase II East Bank Village Plan Mr. Kain noted that the Commission accepted the proposal from JJR at its last meeting. This is the resulting contract. It is the city's standard contract, outlining the scope of services and fee as approved last meeting. JJR proposed a schedule beginning October 15, 2008, and ending January 30, 2009. Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission approved the Contract with JJR, LLC for Phase II East Bank Village Plan. COMMISSION APPROVED FUNDING FOR IMPROVEMENTS AT THE SOUTH BEND REGIONAL MUSEUM OF ART COMMISSION APPROVED THE CONTRACT WITH JJR, LLC FOR PHASE II EAST BANK VILLAGE PLAN South Bend Redevelopment Commission Regular Meeting -October 3, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) Consider accepting the LaSalle Square Plan Mr. Inks noted that the Commission heard a presentation on the LaSalle Square Plan at its last meeting. The Commission wanted a couple of weeks to review the plan in more detail before taking action. Mr. Vigneault, Executive Director, St. Vincent DePaul Society, spoke on behalf of the plan. St. Vincent DePaul is located in the middle of LaSalle Square. His role today is as a spokesperson for the steering committee to garner input from businesses and citizens in the LaSalle Square area, stakeholders like St. Vincent DePaul. The steering committee would like to formally urge the Commission to accept the LaSalle area redevelopment plan and to begin its implementation as quickly as is possible. In particular, the committee supports the continued acquisition of properties and the initiation of infrastructure improvements that might be necessary to promote private investment in accordance with the plan. The committee intends to continue to meet and work for the revitalization of the LaSalle Square area. Ms. Jones thanked the committee for allowing the Commission two weeks to review the plan. She felt much better prepared to consider it at this time. Mr. Varner asked if a couple copies of the plan could be made available at the public library. Mr. Inks indicated staff would do that. 9 South Bend Redevelopment Commission Regular Meeting -October 3, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission accepted the LaSalle Square Plan. (2) Staff report on Bendix Family Physicians project Ms. Laurent noted that in June 2008 the Commission took possession of the medical office building at 1010 Bendix Drive, owned by St. Joseph Regional Medical Center, and authorized a budget of up to $488,000 of AEDA TIF funds for the renovation of the facility to become a premier physician's office serving the west side of South Bend, through a partnership of St. Joseph Medical Center and Memorial Hospital. Cost estimates were recognized at the time to be conservative and to include provision for addressing some unknowns about the building and site, including HVAC systems and stormwater retention. The Board of Public Wroks was named the authorized agent of the Commission to bid and award the contract. Bids were opened this week and a contract will be awarded to H.G. Christman & Co. in the amount of $346,000, well below our estimates. (3) Authorization for Redevelopment Director to sign Oliver Plow Works Subdivision plats Mr. Inks noted that the Redevelopment COMMISSION ACCEPTED THE LASALLE SQUARE PLAN STAFF REPORT 10 South Bend Redevelopment Commission Regular Meeting -October 3, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued... Director has traditionally signed the plats as an administrative function, but we bring it to the Commission for authorization, so the Commission is aware of what we are doing. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission authorized the Redevelopment Director to sign Oliver Plow Works Subdivision plats. (4) Resolution No. 2507 related to acquisition of property in the Airport Economic Development Area. (911 Marietta) Mr. Mathia noted that the Commission acquired the land for the Park Department's water park in the Southeast Neighborhood. A triangle area west of the park contains a mix of substandard houses and non- conforming uses. We have been acquiring land in that area as we have opportunity for the purpose of removing the non-conforming uses and substandard housing and for future expansion of the park. The property in that triangle was added to the AEDA acquisition list for that purpose and the Commission has been acquiring it as it has opportunity. This property has just been put on the market as part of a settlement for Medicaid at $11,900. We would like acquire it before someone else does. Resolution No. 2507 sets the offering price for 911 Marietta at $47, 840, the average of two appraisals as is required by law. However, we expect to be able to purchase it for $11,900. This is a nuisance property that needs to be demolished. Staff COMMISSION AUTHORIZED THE REDEVELOPMENT DIRECTOR TO SIGN OLIVER PLOW WORKS SUBDIVISION PLATS 11 South Bend Redevelopment Commission Regular Meeting -October 3, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (4) continued... recommends approving Resolution No. 2507. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2507 related to acquisition of property in the Airport Economic Development Area. (911 Marietta) (5) Resolution No. 2509 related to acquisition of property in the Airport Economic Development Area. (1113 Ford St.) Mr. Witwer noted that the properties at 1113 Ford and 1113 Grace are residential properties surrounded by Oliver Industrial Park that we have offered to purchase if the owners so wish. Resolution No. 2509 sets the offering price for 1113 Ford at $33,500, the average of two appraisals. Staff recommends accepting Resolution No. 2509. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2509 related to acquisition of property in the Airport Economic Development Area. (1113 Ford St.) (6) Resolution No. 2510 approving and accepting a counter offer for the acquisition of property in the AEDA. (1113 Ford St.) Mr. Witwer noted that a counter offer was submitted for 1113 Ford St. in the amount of COMMISSION APPROVED RESOLUTION NO. 2507 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (911 MARIETTA) COMMISSION APPROVED RESOLUTION NO. 2509 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (1113 FORD ST.) 12 South Bend Redevelopment Commission Regular Meeting -October 3, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (6) continued... $36,000. Staff recommends accepting the offer. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2510 approving and accepting a counter offer for the acquisition of property in the AEDA. (1113 Ford St.) (7) Resolution No. 2511 related to acquisition of property in the Airport Economic Development Area. (1113 Grace St.) Mr. Witwer noted that Resolution No. 2511 establishes $28,850 as the offering price for 1113 Grace St. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2511 related to acquisition of property in the Airport Economic Development Area. (1113 Grace St.) (8) Resolution No. 2512 approving and accepting a counter offer for the acquisition of property in the AEDA. (1113 Grace St.) Mr. Witwer noted that a counter offer was submitted for 1113 Grace St. in the amount of $37,900. Staff recommends accepting the counter offer. Mr. Downes asked why there was a bigger COMMISSION APPROVED RESOLUTION NO. 2510 APPROVING AND ACCEPTING A COUNTER OFFER FOR THE ACQUISITION OF PROPERTY IN THE AEDA. (1113 FORD ST.) COMMISSION APPROVED RESOLUTION NO. 2511 RELATED TO ACQUISITION OF PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT UREA. (1113 GRACE ST.~ 13 South Bend Redevelopment Commission Regular Meeting -October 3, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (8) continued... discrepancy between the offering price and the counter offer for the 1113 Grace St. property. Mr. Witwer responded that the appraised value of 1113 Ford St. was closer to its assessed value. 1113 Ford had a lot of interior problems that made the house unlivable. The 1113 Grace St property was in livable condition. Their initial counter offer was considerably higher. The $37,900 price was negotiated down from the original counter. Upon a motion by Mr. Downes, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 2512 approving and accepting a counter offer for the acquisition of property in the AEDA. (1113 Grace St.) 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 South Side Development Area. F. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. COMMISSION APPROVED RESOLUTION NO. 2512 APPROVING AND ACCEPTING A COUNTER OFFER FOR THE ACQUISITION OF PROPERTY IN THE AEDA. (1113 GRACE ST.) 14 South Bend Redevelopment Commission Regular Meeting -October 3, 2008 6. NEW BUSINESS (CONT.) G. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. H. Ratification of Service Contracts Property Description Commissio Contractor Service Contract Staff Member n Role in Provided Amount Transaction Burton Properties: Parcels 18- Acquisition Wightman Phase I Envi- $2,300 Laurent 8027-1085, 18-8027-1086, 18- Petrie ronmental Site 8027-1087, 18-8027-1098, 18- Assessment 8027-1099, and 18-8026-1064 Upon a motion by Mr. Downes, seconded by Mr. King and unanimously carried, the Commission ratified the Service Contract approved by staff since August 15, 2008. I. Other (1) Resolution No. 2508 commending Karl G. King for extraordinary service to the South Bend Redevelopment Commission Ms. Jones noted that Mr. King asked the Mayor to appoint a replacement for him on the Commission. That has been done, and this is Mr. King's last Commission meeting. We have prepared a resolution commending him for his service. She read Resolution No. 2508 into the record. Resolution No. 2508 Resolution Of The South Bend Redevelopment Commission Commending Karl G. King For Extraordinary Service To The South Bend Redevelopment Commission COMMISSION RATIFIED THE SERVICE CONTRACT APPROVED BY STAFF SINCE AUGUST 15, 2008 15 South Bend Redevelopment Commission Regular Meeting -October 3, 2008 6. NEW BUSINESS (CONT.) I. Other (1) continued... WHEREAS, Karl G. King has been a member of the South Bend Redevelopment Commission since October 2004; and WHEREAS, during his tenure on the Commission Karl has had an active role in projects such as the All American Plaza, the South Bend Chocolate Cafe expansion, Erskine Village, Erskine Commons, Portage Prairie, demolition of Oliver Plow Works, the Oliver Industrial Park, Rose Brick and Materials, demolition of South Bend Stamping Plant, Studebaker Industrial Park, the Natatorium restoration, the Coveleski Park Neighborhood initiative; and WHEREAS, Karl has invested more than a decade of work as a member of the South Bend Common Council, Redevelopment Commission, Northeast Neighborhood Revitalization Organization and the Area Plan Commission for the erection of economic bridges between the University of Notre Dame and its adjacent neighborhood, which are now being realized in the first phase of a $215-million Eddy Street Commons development; and WHEREAS, Karl has demonstrated the foresight to support investment in critical infrastructure like the Metronet and to see the tremendous opportunities for South Bend to become the hub of an innovation-based economy, leading the call to action for the City to build on platforms like Innovation Park and MIND to launch unprecedented 16 South Bend Redevelopment Commission Regular Meeting -October 3, 2008 6. NEW BUSINESS (CONT.) I. Other (1) continued... community and economic development for this community; and WHEREAS, Karl has encouraged the City to look ahead and clarify its expectations for residents and developers of how they can invest in South Bend's vibrant future through strategic development plans for downtown, the Northeast Neighborhood, the East Bank Village, LaSalle Square and the Coveleski Park and neighborhood; and WHEREAS, Karl unselfishly gave of his time for the betterment of the community with no concern for individual honor or recognition although he played an instrumental role in setting policy and negotiating through the details of many important projects; and WHEREAS, Karl has now decided to retire from his volunteer service on the Commission and will now find other activities to pursue on the first and third Friday of each month; NOW, THEREFORE, BE IT RESOLVED that the South Bend Redevelopment Commission hereby recognizes Karl G. King for his extraordinary commitment and distinguished service to the South Bend Redevelopment Commission and the City of South Bend; thanks him for the outstanding contributions he has made; and declares it will sincerely miss his diligent work, wisdom and his presence at future meetings. 17 South Bend Redevelopment Commission Regular Meeting -October 3, 2008 6. NEW BUSINESS (CONT.) I. Other (1) continued... Mr. Varner also praised Mr. King's efforts crunching the numbers on behalf of the Council's tax abatement reform. The information he compiled gives legitimacy to the policy decisions that were made about the program. The Council could always expect a very analytical decision from Karl. He appreciated that about Mr. King. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2508 commending Karl G. King for extraordinary service to the South Bend Redevelopment Commission. 7. PROGRESS REPORTS There was no report. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is scheduled for Friday, October 17, 2008 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Downes made a motion that the meeting be adjourned. Mr. King seconded the motion and the meeting was adjourned at 10:52 a.m. ~~ .. - ~a1~'E ;;iliso~~ ~ .. .. . 18 COMMISSION APPROVED RESOLUTION NO. 2508 COMMENDING KARL G. KING FOR EXTRAORDINARY SERVICE TO THE SOUTH BEND REDEVELOPMENT COMMISSION PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT :.