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HomeMy WebLinkAbout05-15-14 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING May 15, 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 Members Absent: Ms. Valerie Schey 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, Assistant Exec Director Ms. Beth Leonard Inks, Director Mr. Brock Zeeb, Director Economic Resources Ms. Kathy Hahn, Economic Resources Ms. Liz Maradik, Planning Mr. Dan Jones, Business Development Corp. Mr. Oliver Davis, South Bend Common Council Mr. Mark Peterson, WNDU-TV Cameraman WNDU Mr. Erin Blasko, South Bend Tribune Mr. Aaron Perri, DTSB Mr. James Fillmore, WSBT Ms. Mo Miller Mr. Andrew Nemeth Mr. Marty Wolfson, Comm Forum for Econ Dev Mr. Dan Ianello,Nello Corp. Mr. Jens,Norress 1 South Bend Redevelopment Commission Regular Meeting—May 15, 2014 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday,April 24,2014. Mr. Varner asked that the Minutes be corrected to show that Mr. Todd Zeiger is with Historic Landmarks Foundation,not Southhold Restoration. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried,the Commission approved the Minutes of the Regular Meeting of Thursday, April 24,2014, as corrected. 3. APPROVAL OF CLAIMS 324 AIRPORT AEDA Kolata Enterprises LLC 2,595.00 Professional Services South Bend Water Works 99.38 4212/4224 Fellows St Faegre Baker Daniels 8,085.30 Legal Services Rendered thru 3/14 Plews Shadley Racher&Braun LLP 48,428.04 Environmental/Bosch/Honeywell/Union Station/ARG Corp Litigation All-Phase Electric Supply Co. 110,435.33 Union Station Technology Center/Traffic Light 731 Lafayette IDEM 51.83 Service BSA LifeStrutures 144,147.89 Ignition Pk Hull&Associates 2,735.00 Ignition Pk 420 FUND TIF DISTRICT-SBCDA GENERAL Abonmarche 4,650.00 Colfax&Hill Drainage Improvements Rose Pest Control 109.00 LaSalle Hotel South Bend Water Works 41.29 325 S Lafayette Blvd Weaver Boos Consultants 14,717.24 Ivy Tower Jones Petrie Rafmski 4,654.50 Ignition Pk South Bend Water Works 205.18 410 W Wayne St. Bradley Company 2,011.85 Management Fee DTSB 20,625.00 Beautification&Recruitment Program 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT DLZ 9,000.00 Engineering services Reith-Riley Construction Co.,Inc. 19,057.48 Memorial Parking Ph. 3B 430 SOUTH SIDE DEVELOPMENT AREA Chistopher B Burke Engineering,LLC 2,900.00 Fellows St. &Ireland Intersection Improvements DLZ 13,024.00 Fellows St.RW/So.Bend Bowen St. Sidewalk RW/Ireland RW 436 TIF NORTHEST RESIDENTIAL US Bank 1,000.00 Eddy Street Commons $ 408,573.31 2 South Bend Redevelopment Commission Regular Meeting—May 15,2014 3. APPROVAL OF CLAIMS (CONT.) Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Claims submitted May 15, 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) Request for funding for repair and replacement of downtown outdoor furniture. Mr. Kain noted that over the past decade, downtown furniture and fixtures have been acquired which provide a cohesive look and feel to the downtown experience. During this time,DTSB has maintained the items by making minor repairs,painting, cleaning,removing graffiti and stickers, etc. After this brutal winter, especially, some of the fixtures have been severely damaged or are missing altogether,with others needing replacement parts and repairs. DTSB has compiled a list of these needs totaling$11,883.60. This cost is for the parts or items only,with DTSB performing installation or repair. Staff requests approval of this funding request from the SBCDA TIF,to repair or replace the downtown furniture and fixtures damaged by the hard winter. This expense is not part of DTSB's contracted maintenance responsibilities in the downtown. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried,the Commission approved expenditure of$11,883.60 for repair and replacement of downtown outdoor furniture. B. Airport Economic Development Area (1) Proposal for professional services to replat two LaSalle Square parcels. (Unity Gardens/St. Vincent DePaul. Mr. Relos noted that that staff solicited a proposal from Danch Harner Associates to replat two Commission owned parcels near LaSalle Square. These are parcels that Unity Gardens uses to the west of St. Vincent DePaul. We are asking DHA to perform subdivision services to make a two lot, one outlot minor subdivision replat. There is a retention pond on one parcel. The replat will plat that retention pond off from the remainder of its parcel. And, we want to split the eastern most lot at an old abandoned road that is on it. This will help make the St. Vincent DePaul property more marketable and will provide a buffer/setback for reuse 3 South Bend Redevelopment Commission Regular Meeting—May 15,2014 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (1) continued... of the St. Vincent DePaul property. The fee for these services is $5,875. Staff requests approval of an amount not to exceed $6,000. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried,the Commission approved the proposal for professional services to replat two LaSalle Square parcels. (Unity Gardens/St. Vincent DePaul in an amount not to exceed$6,000. (2) Development Agreement with Lippert Components Manufacturing for capital investment and job creation at the former A.J.Wright facility. Mr. Fielding noted that Lippert Components will be moving to the former A. J.Wright facility. They've agreed to create 380 jobs over the next ten years and occupy the entire building for the same period. We have a negotiated development agreement for approval today which clearly defines the Commission's investment, our expectations of the company and what their expectations of the Commission are. The development agreement includes as an attachment the Equipment Lease Agreement. Mr. Varner asked if there are claw-back provisions in the agreement. Mr. Fielding responded that there are the standard claw-back provisions for failure to meet the job creation or to move into the facility will result in a fine of 1.5 times the city's investment in the equipment. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Development Agreement with Lippert Components Manufacturing for capital investment and job creation at the former A. J. Wright facility. (3) Equipment Lease Agreement with Lippert Components Manufacturing. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried,the Commission approved the Equipment Lease Agreement with Lippert Components Manufacturing. (4) Economic development updates. Mr. Fielding reported on two economic development projects that have been in the works for some time, and are now ready for Commission consideration of the terms of a development agreement. DCI staff, in partnership with the Chamber of Commerce and the Indiana Economic Development Commission(IEDC),has been working with the executives from the Norress 4 11 South Bend Redevelopment Commission Regular Meeting—May 15, 2014 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (4) continued... Corporation in an effort to expand its global reach through expansion into the U.S. with their first facility being here in South Bend. The company is a leading German producer of technical hoses,hose systems and system accessories. They currently do not have a manufacturing presence in the United States;however,they desire to expand here. The company plans to establish a production facility and central warehouse to service the North American market. This will help strengthen the company's overall market position. The initial investment plan calls for$2 million to be invested over the first five years.. The company plans to hire between 20 and 40 jobs in the South Bend community,ranging from managerial, engineering, skilled labor and clerical, with hourly wages ranging from$24 to $30 per hour. Norress has submitted a Petition for Incentives through 2018,pledging to create and retain approximately 26 new jobs and to make the$2 million investment. The owners of Norress have identified a site north of the airport that they are hoping to purchase to house both its production and North American headquarters. Staff is requesting permission to move forward with preparation of a development agreement committing$200,000 of AEDA TIF funding to purchase equipment to be leased back for a nominal fee after disposition procedures are completed. Upon proof of satisfying total investment and job creation projections,the Commission shall sell the equipment to the company for the sum of$1. It is anticipated that standard claw-back provisions will be built into the development agreement that would require payment penalties in the event either commitment should fall short of promises. Mr. Varner asked whether the lease payment recaptures the entire investment. Mr. Fielding responded that it does not,but we know that the capital investments they will make will provide property taxes that cover our cost after about seven years. Upon a motion by Mr. Varner, seconded by Mr. Inks and unanimously carried the Commission approved the terms outlined for the Norress project and authorized staff to prepare a development agreement based on the terms outlined. Mr. Fielding also reported that staff and the IEDC have been working with executives from the Nello Corporation for approximately ten months in an effort to consolidate its operations from Texas to South Bend. Nello Corporation is a global leader in the design and fabrication of galvanized steel towers, guyed towers, and monopoles as well as tapered utility pole and transmission pole structures. Founded in 2002 by a team of experienced engineering, design, and manufacturing professionals,Nello has grown to one of the larger infrastructure providers in North America. The executives at Nello have submitted a 5 South Bend Redevelopment Commission Regular Meeting—May 15, 2014 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (4) continued... Petition for Incentives to the City of South Bend and we have successfully negotiated a public investment of$9,000,000 into equipment and/or machinery to be leased back for a period of ten years. Nello's Petition for Incentives pledges to create and retain approximately 600 jobs with hourly wages averaging$16/hr. The owners of Nello have identified a site north of the Ethanol Plant where they plan to construct and operationalize an initial 250,000 square foot facility with plans to double in size after year 5. They are currently completing soil borings and ground testing to ensure the viability of the preferred site. Staff requests permission to move forward with the preparation of a development agreement committing$9,000,000 of AEDA TIF funding to purchase equipment to be leased back for a nominal fee after disposition procedures are completed. Upon proof of satisfying total investment and job creation projections,the Commission will sell the equipment to the company for the sum of$1. It is anticipated that standard claw-back provisions will be built into the development agreement that would require payment penalties in the event either commitment should fall short of promises. Mr. Fielding noted that the Commission will not be offering tax abatement to this project, due to the large amount of TIF funds being provided for equipment. Mr. Varner asked the amount of investment Nello will be making in the project. Mr. Fielding responded that they will be making a$60,000,000 investment, looking to construct their initial 200,000-300,000 sft facility this year with plans to expand with an additional 200,000-300,000 sft within five years. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the terms outlined for the Nello project and authorized staff to prepare a development agreement based on the terms outlined. 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.3214 approving and authorizing the execution of an amendment to the Addendum to the Master Agency Agreement with the Board of Public Works (Southside Improvements Project) 6 South Bend Redevelopment Commission Regular Meeting—May 15,2014 6. NEW BUSINESS (CONT.) D. South Side Development Area (1) continued... Mr. Relos noted that Resolution No. 3214 approves an Agency Agreement Amendment setting the budget for right of way acquisition and construction for the Bowen Ave. and Ireland&Miami Sidewalk Projects,the High&Ireland Intersection Improvements, and reworking of the berm around the Erskine Retention Basin on the north side of Erskine Plaza. These budgets are based on construction estimates plus contingencies from Christopher Burke Engineering($800,000)and DLZ for right of way acquisition ($175,000). Staff requests approval of Resolution No. 3214 and a not-to-exceed budget of $975,000. Ms. Jones asked the timeline for the sidewalks. Mr. Relos responded that the timeline is affected by how long it takes to secure the right-of-way from McDonalds and KeyBank. He believes we have now found the correct person in each case to move this along. We hope that can be done yet this year. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried,the Commission approved Resolution No. 3214 approving and authorizing the execution of an amendment to the Addendum to the Master Agency Agreement with the Board of Public Works(Southside Improvements Project) E. Northeast Neighborhood Development Area (1) Resolution No.3215 approving and authorizing the execution of an Addendum to the Master Agency Agreement(Five Points Utility Relocation Project) Ms. Maradik noted that Resolution No. 3215 approves an amendment to the Master Agency Agreement with the Board of Public Works for the Five Points utility relocation. Last year in conjunction with INDOT's realignment project for S.R. 23,the city conducted a study to determine which utilities are currently in place and those that might need to be relocated in order to maximize development potential near the new intersection of Eddy and Corby. This study also included a cost estimate to relocate city utilities. The project budget is requested to be set at: Final Engineering Estimate $116,710 Construction Estimate 526,572 Total Project Budget $643,282 Staff requests approval of Resolution No. 3215. Mr.Varner asked what portion of the project budget is for"maximizing development potential"of the site. He noted that those costs are usually borne by the developer. Ms. Maradik responded that when Eddy St. is vacated, it will be in the middle of a parcel. So 7 a: s :G< is South Bend Redevelopment Commission Regular Meeting—May 15, 2014 6. NEW BUSINESS (CONT.) E. Northeast Neighborhood Development Area (1) continued... we're looking at the cost of sanitary and water. What used to be the middle of a street is now developable. It's hard to determine the value of those utilities. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried,the Commission approved Resolution No. 3215 approving and authorizing the execution of an Addendum to the Master Agency Agreement(Five Points Utility Relocation Project) F. Douglas Road Development Area There was no business in the Douglas Road Development Area. G. Ratification of Temporary Use Agreements Use/Agency Lot Event Dates of Use Bend It Till It Breaks St Joseph Surface Bend It Till It Breaks May 3, 2014 until 11:00 p.m., Parking Lot May 3, 2014 121 S. St. Joseph Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission ratified the Temporary Use Agreements approved by staff since the April 24, 2014 meeting. 7. PROGRESS REPORTS Tax Abatement: Ms. Hahn reported that the declaratory resolutions for three tax abatements were approved by the Common Council. Their confirming resolutions will be considered at the May 19 Common Council meeting. • Tower at Washington Square(renovation of Chase Tower)will receive a four-year real property abatement. The cost of renovation will be$3 million. Taxes abated will be$40,091. Taxes to be paid over the four years will be$1,117,145. The project will create one job and eighteen jobs retained. Colfax Hill Partners is a multi-use project with 24 apartment units and commercial space on the ground floor. The project cost is$2.9 million. It is an eight-year real property abatement. Taxes to be abated are$299,443. Taxes to be paid over the eight year period are $416,172. No jobs are projected to be created,but there will be commercial space on the ground floor that could create opportunities for employment. 8 South Bend Redevelopment Commission Regular Meeting—May 15, 2014 7. PROGRESS REPORTS (CONT.) Robert and Catherine Kossler will receive a five-year residential abatement. They are building a home for$330,000 on St. Peter St. Taxes to be abated are $1,893. Taxes to be paid over the five years will be$19,879. 8. NEXT COMMISSION MEETING The Next Regular Meeting of the Redevelopment Commission is scheduled for 9:30 a.m.,May 29, 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 9:57 a.m. (%, 11T c ord, Executive Director Marcia I. Jones, P • a ent 9