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HomeMy WebLinkAbout2 Minutes SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING August 14, 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 )v; Ms. Kathy Hahn Others Present: Mr. Scott Ford, Executive Director Mr. Brock Zeeb, Director, Economic Resources Mr. Chris Fielding, Director, Business Investment Ms. Mo Miller Mr. Mark Peterson, WNDU WNDU Cameraman Mr. Conrad Damian Mr. Shawn Peterson k i g Mr. Jeff Rea, Chamber of Commerce Dr. Carole Schmidt, South Bend Community Schools Ms. Mary Chris Adams, South Bend Community Sch Ms. Cristal Brisco, City Attorney Mr. Erin Blasko, South Bend Tribune Mr. Eric Walton Ms. Annie Chang, WSBT Mr. Demarco Brown, WSBT 1 r } t South Bend Redevelopment Commission Regular Meeting—August 14, 2014 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, July 24,2014 Upon a motion by Ms. Schey, seconded by Mr. Downes and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Thursday, July 24, 2014. 3. APPROVAL OF CLAIMS 324 AIRPORT AREA Quality Turf Management $1,634.00 Landscaping Tri County News 54.11 Notice to Bidding South Bend Tribune 56.22 Notice to Bidding South Bend Parks & Recreation 9,910.00 Lawn Care DLZ 1,920.00 Bowen St. Sidewalk RW DHA 2,483.00 Survey Torti Gallas & Partners 2,000.00 West Side Corridor Master Plan Plews Shadley Racher& Braun 12,128.83 Union Station DHA 11,295.25 Preparation of Legal Descriptions/3 Lot Jackson Services 18,300.00 Ignition Park South Demolitions- Ph V IDEM 1,192.15 Oliver-Plow Environmental Assurance Company 517,284.77 Lead Based Paint at Ivy Tower Weaver Boos Consultants 16,766.17 Ivy Tower Hull &Associates 43,890.10 General Consulting/ Ignition Park Kolata Enterprises LLC 1,530.00 Environmental Remediation Project South Bend Water Works 99.38 4212 Fellows St. /4224 Fellows St 420 FUND TIF DISTRICT-SBCDA GENERAL South Bend Water Works 205.18 410 W Wayne St. South Bend Water Works 43.84 325 S Lafayette Blvd ARC 64.90 Printing Bradley 646.04 LaSalle Hotel Management South Bend Parks & Recreation 1,250.00 Lawn Care DTSB 20,625.00 Beautification Rose Pest Solutions 109.00 Pest Control 422 TIF DISTRICT WEST WASHINGTON South Bend Parks & Recreation 360.00 Lawn Care 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA#1 Reith Riley Construction 186,204.20 Main St./Lafayette Blvd South Bend Parks & Recreation 60.00 Lawn Care 2 South Bend Redevelopment Commission Regular Meeting—August 14, 2014 3. APPROVAL OF CLAIMS (CONT.) 430 FUND SOUTH SIDE DEVELOPMENT TIF AREA#1 DLZ 3,280.00 Fellows St. Right of Way Jackson Services 8,500.00 Demo of 4404 Fellows St DLZ 280.00 Ireland Right of Way Christopher B. Burke Engineering, LLC 1,556.25 South Side Corridor Improvements 426 FUND SOUTH BEND CENTRAL MEDICAL DISTRICT Reith Riley Construction Memorial Parking Ph. 3B Total $853,392.14 Ms. Schey asked for an update on the Ivy Tower project as there is a significant claim for that project on the Claims List. Mr. Zeeb responded that to date the Commission has spent $1,265,940 on the project, including PCU removal, asbestos removal, the environmental consultant fees, and the Phase I and Phase II site assessments. That large claim was the first charge for lead based paint removal. Mr. Zeeb also addressed another question Ms. Schey had posed: whether the Ivy Tower has received any other public funding. Any project of this size would always apply for state and federal credits. Kevin Smith and his team have done that. Those applications are under review and pending approval. We are optimistic those funds will be coming into the pipeline shortly. Ms. Schey also asked what taxes Ivy Tower currently generates. Mr. Zeeb noted that the building generates $48,379 in tax revenue. That includes all the parcels that are owned by Kevin Smith. Ms. Schey asked when the building is expected to be fully functional. Mr. Zeeb responded that there are too many pending issues to give an accurate timeline, the largest being the environmental remediation. Mr. Smith and his team are anxious to get into the building to start remodeling. The contract for lead based paint remediation is anticipated to be completed in January 2015. Ms. Schey asked about the potential expressed in 2012 for residential units on the top floors. Mr. Peterson responded that there is a high demand for market rate housing in the downtown and this building has some of the best views of the downtown and the skyline. The difficulty in pursuing residential development is the large amount of environmental work that still needs to be done. You can't talk specifics with individuals who would be interested when you are two years out from being able to develop it. Upon a motion by Mr. Downes, seconded by Ms. Schey and unanimously carried, the Commission approved the Claims submitted August 14, 2014. 4. COMMUNICATIONS There were no Communications. 3 South Bend Redevelopment Commission Regular Meeting—August 14, 2014 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. B. Airport Economic Development Area (1) Economic Development Agreement with Norres North America Inc. Mr. Fielding noted that on May 15, 2014 the Commission approved the terms of a development agreement with Norres North America Inc. and authorized staff to reduce those terms to a development agreement and equipment lease. Those are the documents before the Commission today. This German specialty hose maker has completed negotiations for the building,they've entered into a lease-to-buy, with the goal to buy the building within 24 months. They have committed to creating 26 jobs with a pay range of$24 to $30/hr. The Commission has committed $200,000 in TIF funds to purchase equipment to be leased back to Norres. All standard clawbacks do apply. Mr. Varner asked about the range of jobs shown as 26-40 listed and wondered if there is space there for expansion. Mr. Fielding responded that there is space in the plant that is being used by another tenant. The tenant understands that it must move within two years. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Economic Development Agreement with Norres North America- Inc. (2) Equipment Lease Agreement with Norres North America Inc. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Equipment Lease Agreement with Norres North America Inc. (3) Resolution No. 3225 approving and authorizing the execution of an Addendum to the Master Agency Agreement(Noble Americas South Bend Ethanol LLC Project) Mr. Relos noted that the Commission approved an Economic Development Agreement with Noble Americas at the July 24 meeting. Resolution No. 3225 now sets up the standard agency agreement with the Board of Public Works for creating bid specifications, bidding and awarding the bid for the equipment the city will purchase in a not-to-exceed amount of $2M. Staff requests approval of Resolution No. 3225. 4 South Bend Redevelopment Commission Regular Meeting—August 14, 2014 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (3) continued... Upon a motion by Ms. Schey, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3225 approving and authorizing the execution of an Addendum to the Master Agency Agreement in an amount not to exceed $2M. (Noble Americas South Bend Ethanol LLC Project) (4) Administrative Settlement for the acquisition of 1504 S. Kemble. Mr. Relos noted that on April 24, 2012 the Commission set the offering value of 1504 S. Kemble at $18,500, the average of two independent appraisals for the two-story, two- bedroom, 1174 sft residence. This is the last property west of Scott Street in the Ignition Park South. Staff has been working with the property owners for three+years to come to an agreement on the purchase. The settlement purchases the property for $40,000 plus relocation costs for the grandson and his wife who have been living in the home caring for the grandmother for ten years. The price was established by looking at comparable homes for the relocation of the grandson and by looking at the average of what we've paid for other properties in the area Staff requested approval of the Administrative Settlement. Upon a motion by Ms. Schey, seconded by Mr. Downes and unanimously carried, the Commission approved the Administrative Settlement for the acquisition of$1504 S. Kemble as described. 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 Economic Area I i There was no business in the Douglas Road Economic Development Area i i l t E 5 is i e South Bend Redevelopment Commission Regular Meeting—August 14, 2014 6. NEW BUSINESS (CONT.) G. Other (1) Economic Development Update Mr. Zeeb noted that the Commission is being asked to participate in Project Lead the Way (PLTW) with the Chamber of Commerce and South Bend School Corporation. Project Lead the Way is a Science, Technology, Engineering and Math(STEM) focused curriculum and teacher professional development program designed to meet the needs of a global economy. In July 2013 PLTW reached out to CPEG to assess its initial interest in the regional implementation of the PLTW model in a five-county area. Those five counties were St. Joseph, Elkhart, Fulton, Kosciusko, and Marshall. In October 2013 PLTW informed the counties of a potential matching grant opportunity. In December 2013 PLTW made a presentation to the South Bend School Corporation, the Chamber of Commerce, and other community players. The Chamber agreed to lead the way in securing businesses to help fund the program in South Bend. In February 2014 the Chamber secured the matching funds from businesses and other foundations and individuals. Through discussions with the School Board the city realized additional technology infrastructure challenges hindered implementation of PLTW in the South Bend schools. This approved educational training program gives the TIF unique opportunity to leverage multiple funding sources against its contribution of$542,716 which will impact 23 of our city schools and launch a nationally recognized STEM program to support positive economic growth and development citywide. The commitment would be made over a three year period and matched by the school corporation. DCI requests Commission approval to move forward with preparation of a development agreement for those funds. Mr. Jeff Rea, Executive Director of the Chamber of Commerce, explained PLTW. Mr. Rea noted that the Chamber has analyzed why our community occasionally loses economic opportunities. We recognized that we were losing those opportunities because of a deficiency in our talent pipeline. When we sat with our competitors in other cities and were able to see what they had in terms of the talent pipeline, specifically related to STEM, it was apparent that we weren't doing enough. The economic development partners from across the region felt like we needed to do some things locally to address those deficiencies. I As we look at the targeted industries that we have in our area, and as we look at the growth in STEM in other areas, and as we consider the number of new job opportunities that are available around the country, CPEG and local economic development partners from that five county area came together with interest in pulling together the resources to fund this PLTW initiative. We had some initial experience with PLTW in our community—Riley High t School, Kennedy Primary in South Bend was a national pilot site, Mishawaka High School and Penn High School. We thought if we could expand that opportunity to every student in St. Joseph County, public or private school, that that would give us a competitive advantage when we are competing for jobs. I i' k 6 1 South Bend Redevelopment Commission Regular Meeting—August 14, 2014 6. NEW BUSINESS (CONT.) G. Other (1) Economic Development Update The program doesn't come without a cost, though. We solicited support from the business community and from local foundations and were able to put $900,000 together to form the local match. That is intended to give those schools the opportunity to implement the program. Mr. Rea noted that the schools have three years to decide whether to implement PLTW. Eighteen schools are doing an implementation this year. We anticipate many more implementing next school year. We've been working closely with Dr. Schmidt as we have with each of the school corporations, both public and private. South Bend really knocked this out of the park. They were very organized, very interested in the implementation of this. We've worked closely with a number of teachers in South Bend who have firsthand knowledge of the benefits of this program and the opportunities to move it beyond where it's at right now. Economic development in a community is a team effort, and when we identify what our number one target ought to be in terms of bringing new jobs to our area, talent is the top one. All companies ask about the talent pool. Mr. Shawn Peterson noted that PLTW is one of the top STEM organizations in the country. It's a different way of learning, and the types of jobs that are coming along that use those skills pay above the average wage. Those are in the STEM fields. PLTW chose Northern Indiana as a model region. Typically they partner with corporations such as Toyota or Intel that give them dollars to implement these sets of programs around their factories or facilities. They've seen the value, they've tested and proven it, and they validating the curriculum as the driver of the workforce of the future. PLTW changed the model for us. They selected our region to be a model region for partnering with a community. They brought matching resources to the table to do that demonstration model. So, the question became, "can our schools in South Bend participate in that?" That is what is before the Commission today—how do we allow our schools to participate? Are there resources to jump that financial hurdle so that our schools can participate. Not just Kennedy, LaSalle Academy and Riley High, but all the schools. The Commission has a chance to demonstrate that this is an important piece of our talent pipeline. Mr. Peterson also noted that other neighboring Redevelopment Commissions have committed similar amounts of resources to implement PLTW in their communities. What the partners are asking is not inconsistent with what other Redevelopment Commissions have done. Ms. Schey said she was very supportive of implementing the program in South Bend, but she'd like to keep TIF funds true to their infrastructure calling. She worries about establishing a precedent for paying for soft costs with TIF. She wondered if it wouldn't be more appropriate to use Economic Development Income Tax (EDIT) funds for the city's 7 k South Bend Redevelopment Commission Regular Meeting—August 14, 2014 6. NEW BUSINESS (CONT.) G. Other (1) Economic Development Update commitment. Mr. Ford responded that EDIT would be an eligible funding source and it might make sense to use that next year, but for the schools that want the program to begin this year, funding was more urgent than could be met by EDIT. Mr. Varner wanted to point out that the South Bend School Corporation (SBCSC) has its own funding source, including for capital expenses. He doesn't want to see Redevelopment fund the school corporation ongoing. There's pressure everywhere on budgets, but we all have to set priorities. However, he will support this request. Mr. Downes said that he believes this is the very definition of partnership. He asked if this is a dollar for dollar matching deal, does Dr. Schmidt expect the school board will live up to this commitment over the next three years? Dr. Schmidt affirmed. The board has been supportive since it was first presented to them. Mr. Downes noted that when TIF was created, it was a long time ago. The infrastructure of yesterday and the infrastructure of tomorrow are two different things. He thinks the community needs to be forward thinking. Mr. Downes also noted when you look at the results they've had in other communities with PLTW there is the significant impact they've had on the number of females taking these technology jobs. Up to now fewer than 10% of females in communities that didn't have this program got into those technology jobs, and they've raised that to approximately 35%-40% when this program is used. That's an incredible success story. Mr. Inks asked for more detail on the types of uses of the TIF funds in this program and the need for TIF money. Mr. Zeeb noted that part of the conversation with the school corporation is how we inject our funds and where they will be used. The matching portion of PLTW is really for teachers' training. So, what we're looking to do with TIF funds is give the kids the consumables they need, like robotic kits. The South Bend schools were additionally challenged in the technology infrastructure arena. That's why we felt it was a good partnership for TIF. Those robotic kits will last a specific period of time. That touches the question Mr. Varner asked about whether the school corporation will be able to continue this program in the future without the city's input. They will be. They are planning in their budgets for paying for those after our initial purchase. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the use of TIF funds to support Project Lead the Way financially and for three years and authorized staff to prepare a development agreement between the parties. 8 South Bend Redevelopment Commission Regular Meeting—August 14, 2014 6. NEW BUSINESS (CONT.) H. Ratification of Services Contracts Commission Service Contract Staff Role in Contractor Provided Amount Member Transaction Unity Gardens Lot Disposition R.E. Pitts & Assoc Appraisal $1,150 Relos at Ardmore & Pratt Unity Gardens Lot Disposition Steve Sante Appraisal $1,000 Relos at Ardmore & Pratt Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission ratified the Services Contracts approved by staff since the July 24, 2014 meeting. I. Ratification of Temporary Use Agreements Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission ratified the ratified the Temporary Use Agreement with Sweet Home Ministries for use of the former Fred's Transmission site for an outdoor worship service and community fellowship on August 31, 2014. 7. PROGRESS REPORTS There were no Progress Reports. 8. NEXT COMMISSION MEETING The Next Regular Meeting of the Redevelopment Commission is scheduled for 9:30 a.m., August 28, 2014. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Downes made a motion to adjourn. Mr. Varner seconded the motion. The meeting was adjourned at 10:05 a.m. Scott C. Ford, Executive Director Marcia I. Jones, President i1 fi gtG¢j Fat. 9 @@qq1 4'