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HomeMy WebLinkAbout03-27-14 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING March 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 Mr. Stan Wruble (part of meeting) 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 Councilman Derek Dieter Councilman Oliver Davis Chris Fielding, Assistant Executive Director Brock Zeeb, Director of Economic Resources Chris Dressel, Planning Team Ann Kolata, Economic Resources Team Chris Barth, Bradley Co. Brad Toothaker, Bradley Co. (end of meeting) Kara Kelly, Mayor's Office Erin Blasko, South Bend Tribune Ms. Mo Miller 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, March 13, 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, March 13, 2014. South Bend Redevelopment Commission Regular Meeting —March 27, 2014 3. APPROVAL OF CLAIMS 324 AIRPORT AEDA Plews Shadley Racher & Braun LLP Weaver Boos Consultants Faegre Baker Daniels BSA Life Structures Hull & Associates B &J Excavation, Inc. Jones Petrie Rafinski 40,528.36 Environmental / Union Station /Bosch /Honeywell 16,044.14 Ivy Tower 119.85 Professional Services Rendered thru 12/13 1,000.00 Ignition Pk Phase 1B 2,867.50 General Consultant Services 28,785.00 Ignition Park South Demolitions Ph. 4 8,592.00 Ignition Park 420 FUND TIF DISTRICT -SBCDA GENERAL Faegre Baker Daniels 11,803.10 Bradley Company 1,536.35 South Bend Water Works 40.17 430 SOUTH SIDE DEVELOPMENT AREA Heppenheimer & Korpal Law 350.00 Lawson - Fisher Associates 110.00 David Amponsah 15,960.00 Professional Services Rendered thru 12/13 Management Fees 325 S Lafayette Blvd Service Regarding David Amposah Main St /Lafayette Blvd Connector from Ireland Rd to Chippewa Rd Relocation Expense Corridor Improvements 433 REDEVELMENT ADMISNISTRATION GENERAL Faegre Baker Daniels 2,868.75 Professional Services Rendered thru 12/13 $ 111,776.47 Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Claims submitted March 27, 2014. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. South Bend Central Development Area There was no business in the South Bend Central Development Area. 2 South Bend Redevelopment Commission Regular Meeting —March 27, 2014 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (1) Proposal for Comfort Letter, Indiana Brownfield Program Letter and Associated Phase I Environmental Site Assessments and Phase II Soil and Groundwater Sampling (Union Station Technology Center project) Mr. Dressel noted that staff solicited a proposal from Weaver Boos Consultants for environmental services related to the Union Station Technology Center project. The scope of services includes (1) Completion of a Phase I Environmental Site Assessment for the Millennium site at 604 S. Scott Street and preparation of an application to the Indiana Brownfield Program for a Comfort/Site Status Letter. This scope also includes preparation of a draft Environmental Restrictive Covenant for the site. (2) Completion of a Phase I and Phase II Environmental Site Assessment for the Ivy Tower property and preparation of an application for either (depending on the outcome of the Phase II assessment) a letter from the Indiana Finance Authority Brownfields Program (`Brownfields ") regarding the status of the site and any applicable liability exemptions, a No Further Action Letter or an application to the Voluntary Remediation Program. The scope also includes preparation of a draft Environmental Restrictive Covenant for the site that will be submitted to the Brownfields or the Indiana Department of Environmental Management ( "IDEM "). The Phase II work will include soil and groundwater sampling both north and south of the buildings and in the vicinity of Transformer Room #3. Mr. Dressel noted that the schedule for completion is to have the Phase I investigations done within four weeks and the Phase Il investigation complete within approximately eight weeks. Some of the work is dependent on the groundwater sampling in the area being conducted by Hull & Associates and also by the cleanup work required at Transformer Room #3. It is estimated that the Comfort/Site Status letters could take an additional 120 days or longer, depending on the complexity of the PCB remediation. Total cost of this contract is not to exceed $43,394. The work has been anticipated for some time as part of our partnership on the USTC project. Staff recommends approval. Mr. Inks asked why a Phase I assessment is necessary on the Millennium site, since we have already done so much environmental assessment on the site, including the state cleanup. Ms. Kolata noted that a Comfort Letter is not transferable. The Commission had a Phase I assessment done and received a Comfort Letter before it acquired the Millennium property, but the same steps need to be gone through within six months of Union Station's taking title to the property. Also, the Comfort Letter that the Commission received was prior to the cleanup work the state did. So, some of the restrictions on the Commission's Comfort Letter are expected to be lifted for Union Station Technologies. Ms. Jones asked if the budget for this work was included in the project budget. Ms. Kolata responded that it was. 3 South Bend Redevelopment Commission Regular Meeting —March 27, 2014 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (1) continued... Mr. Varner asked whether the Commission's having had title to the property put the Commission permanently in the chain of liability. Ms. Kolata responded that it does. However, if you get some certification from the state that you have met the cleanup goals, that gives you a higher level of confidence that there is nothing more there. It doesn't give you a guarantee that something else won't come up. Part of our agreement with Union Station Technologies is that we will be responsible for any environmental cleanup. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission accepted the proposal from Weaver Boos Consultants for services related to a Comfort Letter, Indiana Brownfield Program Letter and Associated Phase I Environmental Site Assessments and Phase II Soil and Groundwater Sampling (Union Station Technology Center project, and Millennium Environmental) (2) Development Agreement for multi - tenant building at Ignition Park. Mr. Fielding noted that in the summer of 2013 the Department of Community Investment released a request for proposals (RFP) on the Commission's behalf for a multi- tenant facility to be built at Ignition Park. In October staff recommended the Commission move forward with development by Great Lakes Capital. Since then we've had increased interest in Ignition Park. The proposed single building has now morphed into a campus of multi- tenant buildings. Staff is presenting today a Development Agreement for the larger project, a minimum of three buildings. The city's investment will be 15% or a maximum of $900,000 per building. The developer commits to a minimum of 40,000 sft per building with an approximate value of $6,000,000 per building. The original four acres listed in the RFP will be sold for $1.00 with the additional 9 acres being sold to the developer at $25,000 per acre. The purchase price will be paid upon completion of the first building as they move into more permanent financing. Mr. Fielding noted that the agreement includes clawback provisions based on the timing of that payment. Great Lakes Capital is also committed to an additional eleven acres north of this parcel. This includes an option for parcel 2. They are paying $1,000 per acre for that option. Then they have 60 months from completion of building one to take down that option or it will expire. Staff requests approval of the development agreement. Mr. Fielding noted that staff will be supporting tax abatement for buildings one and two. Tax abatement is not intended as an incentive to the developer, but to buy down the lease rate for tenants. 11 South Bend Redevelopment Commission Regular Meeting —March 27, 2014 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (2) continued... Mr. Inks asked what term is expected for the tax abatements. Mr. Fielding responded that their contractors cost estimates are not in yet, but staff is estimating between seven and nine years. Mr. Downes asked about the time for completion of building one. Mr. Fielding responded that they hope to start this summer, with completion expected eight to nine months thereafter. The development agreement stipulates it must be built by fall 2015 or the clawback will be exercised. Ms. Jones asked whether there is a schedule for when jobs are expected to be added as a result of the project. Mr. Fielding responded that there is not. It is anticipated that each building will result in a minimum of 40 -45 employees. The national average for office buildings is one employee for every 175 sft. We are making a very conservative estimate of one employee for every 1,000 sft. Mr. Varner noted that the cost per acre is quoted in the agreement at two different amounts. Mr. Fielding responded that staff noticed that error and it has been corrected. Mr. Varner asked what types of improvements will be funded by the city's investment. Mr. Fielding responded site improvements, utility extensions, curbs, roads, possibly fagade enhancements, though we would rather not put it toward that. However, some of the buildings may be visible from multiple streets so we would want the fagade to look nice from front and back. Mr. Varner asked whether the city has to spend the full amount committed. Mr. Fielding responded that there is a required minimum and a cap for both the city and the developer. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Development Agreement with Great Lakes Capital for multi - tenant buildings at Ignition Park. (3) Staff update. Mr. Zeeb gave the update on Blackthom Golf Course. He noted that on February 22, 2013 the Blackthorn Golf Course bonds were paid off. On March 20, 2013 the Redevelopment Authority the transfer of ownership back to the Redevelopment Commission. The ownership transfer was approved by the Commission on March 28, 2013, seventeen parcels. The golf course has requested additional capital investment from TIF. Prior to making any additional investment into the asset, we need to understand the overall value. Staff will be sending out requests for proposals for an appraisal of the property. Staff will provide an South Bend Redevelopment Commission Regular Meeting —March 27, 2014 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (3) continued... additional update to the Commission once proposals are received. This is the first step in developing a strategy for the asset moving forward. Mr. Varner asked how much the capital requests amount to. Mr. Zeeb responded approximately $750,000 over a five year period. Mr. Downes asked if Kitson & Partners had an appraisal done around the time they took over management of the course. Mr. Zeeb responded that it wasn't an official appraisal. C. West Washington- Chapin Development Area There was no business in the West Washington- Chapin 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. 7. PROGRESS REPORTS Tax Abatement: Mr. Fielding noted that the Common Council passed a designating resolution for tax abatement for the following companies at its March 25 meeting. Confirming resolutions will be considered on April 14. (1) Lippert Components went for a two -year vacant building abatement under the state statute. They committed to 380 jobs over the next ten years with 180 to be created by the end of 2014. (2) Lock Joint Tube is expanding its plant by adding 30,000 sft and seven additional jobs. They are asking for a five year abatement. (3) Noble Americas Ethanol LLC, the new owner of the ethanol plant, is asking for both a real and personal abatement. They are committing to creating fifty jobs. 1i South Bend Redevelopment Commission Regular Meeting —March 27, 2014 7. PROGRESS REPORTS (CONT.) (4) Briarcliff Healthcare on Western Ave. This abatement is not in a TIF area. They are expecting 38 jobs to be created in this long term care rehabilitation facility. Mr. Varner is interested in knowing that amount of investment that is made outside of the TIF districts. Other Mr. Relos noted that the County Commissioners held their tax sale on Monday. The Commission authorized staff to bid on one parcel and that parcel was purchased. Staff would like to hire Mitch Heppenheimer to perform the usual legal services to complete the tax sale process. His fee is $600. Staff requests approval of a not -to- exceed amount of $1,000 in case there are any unforeseen expenses. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission accepted the proposal from Heppenheimer- Korpal for the scope of services proposed and an amount not to exceed $1,000. 8. NEXT COMMISSION MEETING The Next Regular Meeting of the Redevelopment Commission is scheduled for 9:30 a.m., April 10, 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 9:55 a.m. Sc . Ford, Executive Director Marcia I. Jones, Pres' nt