Loading...
HomeMy WebLinkAbout07-24-14 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING July 24, 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 Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. David Relos, Economic Development Specialist Mrs. Cheryl Phipps, Recording Secretary Ms. Kathy Hahn Ms. Debrah Jennings Others Present: Mr. Scott Ford, Executive Director Mr. Jitin Kain, Director, Planning Mr. Chris Fielding, Director, Business Development Ms. Kelli Stopczynski, WSBT Mr. Erin Blasko, South Bend Tribune Ms. Katrina Marquardt Ms. Chauncre Sprouse Mr. Conrad Damian Mr. Cecil Eastman, Admin& Finance 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday,July 10, 2014 Mr. Varner noted that he was not present for the July 10 meeting, but the Minutes say that he seconded the motion for adjournment. He asked that that be corrected. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Thursday, July 10, 2014, as corrected. 1 South Bend Redevelopment Commission Regular Meeting—July 24, 2014 3. APPROVAL OF CLAIMS 324 AIRPORT AEDA 2,910.00 Professional Agreement Environmental Kolata Enterprises LLC Remediation Project Faegre Baker Daniels 5,203.70 Legal Services Clean Harbors Environmental Removal & Disposal of PCB Transformers Services 106,585.00 & Equipment Barners &Thornburg LLP 45,166.69 Redev Bond Refinancing Hull & Associates 995.00 Consulting Services Union Station / Bosch / Honeywell / Ivy Plews Shadley Racher& Braun 9,075.11 Tower Ins. /ARG Corp Litigation Plews Shadley Racher& Braun 564.00 Environmental Owner's Assoication at Blackthorn, Blackthorn Management Assessment & Inc. 12,555.12 Additional Landscape/Irrigation R.E. Pitts &Asoicates, Inc. 825.00 Appraisal Services Appraisal Services, Inc. 750.00 Appraisal Services 420 FUND TIF DISTRICT-SBCDA GENERAL DTSB 1,865.00 Parking Surface Lots Clean Windows/ Install Bulbs/Sweep & Rise Shine Realty 2,000.00 Vacuum / Removal The Vine Abonmarche 2,450.00 Colfax & Hill Drainage Improvements 430 SOUTH SIDE DEVELOPMENT AREA Christopher B. Burke Engineering, LLC 497.00 SS Corridor vs Intersection Improvement $ 191,441.62 Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Claims submitted July 24, 2014. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 2 South Bend Redevelopment Commission Regular Meeting—July 24, 2014 6. NEW BUSINESS A. South Bend Central Development Area (1) Resolution No. 3224 approving and authorizing the execution of an Amendment to the Addendum to the Master agency Agreement (Hill & Colfax Drainage Improvement Project—Supplement#2) Mr. Kain noted that the Commission approved the initial Addendum to Agency Agreement for drainage work at the Hill & Colfax site on August 15, 2013. On January 30, 2014 the Commission amended the Addendum to the Agency Agreement approving a project budget for two aspects of the project: (1) site improvements to assist with the development of the mixed use project and street improvements that would benefit the entire neighborhood. Earlier this year the Board of Public Works bid out the on-site improvements portion of the project. Bids came in significantly higher than anticipated. The budget for the on-site improvements was $110,000. Since then staff has been working with the development team of Colfax Hill Partners to make the project work. Colfax Hill Partners have had some additional costs also in the pricing of their building. The site improvements portion of the project has been renegotiated. Staff is requesting additional resources for the project. The project is a$3,000,000 project. The additional resources retain the Commission commitment towards the project at less than 15% of the total development costs and ensure a payback in less than ten years. Staff requests approval of an additional $170,000 from the SBCDA TIF towards the Hill and Colfax site improvement portion of the project as well as the attached Resolution No. 3224. Mr. Downes asked for a more detailed description of the on-site improvements and off-site improvements. Mr. Kain responded that the on-site improvements that directly benefit the mixed use building include drainage and a parking lot. The second phase of on-site improvements were to do the sidewalk, concrete work, railings and retaining wall, landscaping, street furniture, etc. The off-site improvements were things like pavement markings similar to other Smart Streets projects. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 3224 approving and authorizing the execution of an Amendment to the Addendum to the Master agency Agreement (Hill & Colfax Drainage Improvement Project— Supplement#2) (2) Amendment to Contract for Sale of Land for Private Development with Colfax Hill Partners, LLC. Mr. Kain noted that this Contract amends the original contract signed in December 2013 to reflect the additional site improvements noted above to make the project work, including sidewalks, concrete steps, retaining wall, etc. The developers have also changed the site plan to make the project more feasible. The building footprint will remain the same, but they have reduced the amount of commercial space and increased the amount of residential from thirteen to sixteen units. That reduces the developer's risk in terms of project financing. We 3 South Bend Redevelopment Commission Regular Meeting—July 24, 2014 6. NEW BUSINESS A. South Bend Central Development Area (1) continued... feel the character of the project remains the same. Mr. Varner asked whether Metronet will reimburse the city for the conduit. Mr. Kain responded that we will follow the city's agreement with Metronet which he believes stipulates they will reimburse the city. Mr. Varner asked that that be confirmed. Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Amendment to Contract for Sale of Land for Private Development with Colfax Hill Partners, LLC. B. Airport Economic Development Area (1) Equipment Lease Agreement with Nello, Inc. Mr. Fielding noted that in May staff brought forth a development agreement with the Nello Corporation to create a new facility costing approximately$57,000,000 north of the ethanol plant. The development agreement spelled out that we would continue to work on the terms of the equipment lease for the equipment the Commission would be purchasing. Those terms have been agreed upon. He noted that between the time this lease agreement was sent out in the packets and this meeting we have corrected some minor inconsistencies in the agreement. Those inconsistencies and their corrections were explained. Ms. Schey asked Mr. Ford to communicate with the surrounding neighborhood so they are comfortable with what the building will look like. She said some of her constituents were concerned about it. Mr. Ford said the site plan is before the Area Plan Commission right now and it includes a large buffer between it and the neighborhood. He promised to meet with neighbors to mitigate their concerns. Mr. Downes asked if there is much of a secondary market for this equipment. Mr. Fielding responded that the way the development agreement is structured, the Commission would recoup 80-90% of its funds just through the assessed value (AV) of the 200,000 sft building. That AV would have a seven-year payback on the first drawdown of equipment. Then, not until they build a second building would they draw down the second batch of equipment. The last batch of equipment will be based on job creation. He noted that the Commission will still be able to recoup every dollar, even if we do have to sell the equipment. The development agreement stipulates that they have to pay a very stiff penalty for every job they promised but don't create. 4 South Bend Redevelopment Commission Regular Meeting—July 24, 2014 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (1) continued... Upon a motion by Mr. Downes, seconded by Mr. Inks and unanimously carried, the Commission approved the Equipment Lease Agreement with Nello, Inc. (2) Economic Development Memorandum of Understanding with Noble Americas South Bend Ethanol,LLC. Mr. Fielding noted that in February the staff presented the proposed development agreement terms with Noble Americas the new owner/operator of the ethanol plant. They spent the last six months doing more than their due diligence. The facility doesn't even look like the same facility. They've already exceeded the committed capital investment for the project. The Economic Development Memorandum of Understanding presented today clearly outlines Noble Americas' commitment for both capital investment and job creation as well as the Commission's commitment to purchase the corn oil extractor equipment for $2,000,000. That equipment will be leased back to Noble Americas for $100,000 per year for five years with their option to purchase the equipment from us as long as they meet the capital expenditures commitment and jobs to be created commitment for that period. Mr. Varner asked how long the payback is to the city. Mr. Fielding responded that the payback on the $2M ---essentially there is a net investment from the Commission of$1.5M. They are committing $31.8M in capital improvements. The payback on that is less than six years. Upon a motion by Ms. Schey, seconded by Mr. Downes and unanimously carried, the Commission approved the Economic Development Memorandum of Understanding with Noble Americas South Bend Ethanol, LLC. 1. (3) Equipment Lease Agreement with Noble Americas South Bend Ethanol, LLC. Upon a motion by Ms. Schey, seconded by Mr. Downes and unanimously carried, the Commission approved the Equipment Lease Agreement with Noble Americas South Bend Ethanol, LLC. (4) Agreement for Professional Services by and between the City of South Bend Indiana and Danch, Harner& Associates, Inc. (Alta Survey, Lot 7 Ignition Park) Mr. Kain noted that in March 2014 the Commission approved a development agreement with Great Lakes Capital to build a campus of high technology related buildings in Ignition Park. As part of the agreement the Commission committed to providing an Alta Survey to Great Lakes Capital. Staff requests approval of the Agreement for Professional Services with Danch Harner & Associates at a cost of$2,850 to meet that commitment. 5 South Bend Redevelopment Commission Regular Meeting—July 24, 2014 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (4) continued... Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Agreement for Professional Services by and between the City of South Bend Indiana and Danch, Harner& Associates, Inc. (Alta Survey, Lot 7 Ignition Park) (5) Resolution No. 3223 accepting the transfer of real property from Rose Brick, LLC. Mr. Fielding noted that the Oliver Plow Memorial in Oliver Industrial Park was built on property owned by Rose Brick. It was always intended that the Commission would take ownership of the land on which the memorial stands, but the transfer of the deed has never taken place. Resolution No. 3223 accepts the transfer from Rose Brick. Upon a motion by Mr. Inks, seconded by Ms. Schey and unanimously carried, the Commission approved Resolution No. 3223 accepting the transfer of real property from Rose Brick, LLC. 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. 1 E. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. F. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area G. Other (1) Ratification of South Bend Home Improvement Program Release of Mortgage (818 S. 30th St.) Mr. Meteiver noted that in 2001 and 2002 the Commission was the body that approved funds disbursed under the South Bend Home Improvement Program, both grant money and 6 South Bend Redevelopment Commission Regular Meeting—July 24, 2014 loans for additional repairs that were beyond the maximum grant. This particular case had both a grant and loan. Those loans are generally due on sale. In this case the property was held in a family trust. The lady who signed the mortgage had only a life estate in the property. She is now deceased. That life estate is now expired, resulting in our mortgage expiring also. Brock Zeeb executed the release of that mortgage and we're asking the Commission to ratify that action. Upon a motion by Ms. Schey, seconded by Mr. Downes and unanimously carried, the Commission ratified the South Bend Home Improvement Program Release of Mortgage (818 S. 30th St.) H. Ratification of Services Contracts 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 10, 2014 meeting. 7. PROGRESS REPORTS Tax Abatement: Ms. Hahn noted that the Common Council approved the designating resolution for Catalyst LLC for a 7-year real property abatement. They will construct two multi-tenant buildings in Ignition Park over two years at a cost of$12,000,000. Taxes to be abated over the seven years are estimated at $1,099,338. Taxes to be paid during that same period are estimated to be $1,491,684. They expect to create 32 jobs by the end of 2018 with a payroll of$960,000. 8. NEXT COMMISSION MEETING The Next Regular Meeting of the Redevelopment Commission is scheduled for 9:30 a.m., August 14, 2014. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Varner made a motion that the meeting be adjourned. Mr. Downes seconded. The meeting was adjourned at 9:52 a.m. f • S C. Ford, Executive Director Marcia I. Jone resident 7