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HomeMy WebLinkAbout2 Minutes 5/29/14 MeetingSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING May 29, 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 Mr. Brock Zeeb, Director Economic Resources Ms. Debrah Jennings, Property Manager 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, May 15, 2014. Ms. Jones noted that the Minutes that were distributed contained some scrivner's errors. Those have been corrected. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Thursday, May 15, 2014, as corrected. 3. APPROVAL OF CLAIMS 324 AIRPORT AREA Hull & Associates B & J Excavation 420 FUND TIF DISTRICT -SBCDA GENERAL DTSB Bradley Co. Total 1 2,112.50 Extended General Consultant 1,515.00 Ignition Pk Demolition phase 4 Repair /Replacement Downtown Street 79,655.00 Furniture / Parking Surface Lots 591.60 Management Fee 83,874.10 South Bend Redevelopment Commission Regular Meeting —May 29, 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 29, 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) Grant of Easement to NIPSCO for regulator station (VA Clinic site) Mr. Relos noted that NIPSCO currently has an easement in vacated Franklin Street between Wayne and Western, on the west side of the VA Clinic. Within this easement, at the northeast corner of Western and Franklin, is an underground regulator station (station). To upgrade their gas system in the downtown area, NIPSCO would like to move this station to above ground and replace sections of gas lines. In working with NIPSCO on the placement of the new station, not wanting to hinder future development opportunities along Western, staff suggested this new station be placed one block north along Wayne and the north / south alley between Franklin and Lafayette. Upon completion of the new station and gas lines, the current easement in Franklin Street will be vacated, which will better facilitate development of this key site. Staff requests approval of this 20' x 23' easement, to allow upgrading of this natural gas regulator station and lines for the downtown area. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Grant of Easement to NIPSCO for a regulator station (VA Clinic site) (2) Lease with Michiana Brewer's Supply, LLC (117 S. Michigan St.) Mr. Zeeb noted that Michiana Brew Works is currently located in the State Theatre. They wish to move into the vacant space at 117 S. Michigan St. in the Michigan Street Shops. This is our standard lease for the Michigan Street Shops. The term of the lease is three years with an option to renew for another three years. They have asked for a modification in the hours of operation, opening at noon each day and being closed on Sunday. They won't be making major renovations to the site. 2 South Bend Redevelopment Commission Regular Meeting —May 29, 2014 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (2) continued... Mr. Varner asked the exact nature of the business. Mr. Zeeb responded that they will get one of the Riverfront District liquor licenses and have some microbrew tasting and sales of brewing equipment. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Lease with Michiana Brewer's Supply, LLC for 117 S. Michigan Street. B. Airport Economic Development Area There was no business in the Airport Economic Development Area. 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: Ms. Hahn reported that at its May 28, 2014 Commission meeting the Common Council approved a declaratory tax abatement resolution for Lincoln Park Development to develop a housing cooperative in the Lincoln Park neighborhood. The cooperative will be owned and managed by the residents. Similar co -ops in this area are Walnut Grove and Southmore Mutual Housing. The co -op will have twenty -four free- standing units of 1, 2, 3, and 4 bedrooms. The total project cost will be approximately $4,689,376. The cost of the abatement was calculated based on a residential schedule to be approximately $140,267 for the entire project. The total taxes to be paid over the five years of a residential abatement will be approximately $183,590. South Bend Redevelopment Commission Regular Meeting —May 29, 2014 7. PROGRESS REPORTS Mr. Varner asked about some uncertainty expressed at the Council meeting. Ms. Hahn responded that the tax abatement program has never had a housing cooperative before, so there is no precedent on whether it should be handled as a residential abatement or multi - family /commercial because he complex will offer very affordable rents. Residential units up for abatement are typically owner - occupied. They are five -year abatements and the cost is calculated with a special residential calculator. A commercial abatement could be three to seven years, based on the number of points scored on the points schedule. After consulting with Council member Gavin Ferlic and the Council's legal counsel, they suggested processing it as a residential abatement. However, in that type of tax credit project, the assessment is based on the level of rent divided by a cap rate. So, we're not sure how to determine the actual cost of the abatement. You would need an attorney that specializes in tax credit projects to develop an analysis for the Council if it wants that analysis. Mr. Varner said he would like staff to arrange for an accurate cost estimate. Ms. Hahn said she would be happy to arrange for one prior to the Council considering the confirming resolution. 8. NEXT COMMISSION MEETING The Next Regular Meeting of the Redevelopment Commission is scheduled for 9:30 a.m., June 12, 2014. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, the meeting was adjourned at 9:40 a.m. Scott C. Ford, Executive Director Mr. David Varner, Vice - President