Loading...
HomeMy WebLinkAbout2 Minutes 8/28/14SOUTH BEND REDEVELOPMENT COMMISSION August 28, 2014 9:30 a.m. Presiding: Marcia I. Jones, President 1. ROLL CALL Members Present: Legal Counsel: Redevelopment Staff: REGULAR MEETING 227 West Jefferson Boulevard South Bend, Indiana Ms. Marcia Jones, President Dr. David Varner, Vice President Mr. Don Inks, Secretary Mr. Greg Downes Ms. Valerie Schey Mr. Stan Wruble Mr. Lawrence Meteiver, Esq. Mr. David Relos, Economic Development Specialist Mrs. Cheryl Phipps, Recording Secretary Ms. Debrah Jennings, Property Manager Others Present: Mr. Scott Ford, Executive Director Mr. Brock Zeeb, Director, Economic Resources Mr. Chris Fielding, Director, Business Investment Mr. Jitin Kain, Director, Planning Mr. Corbin Kerr, Engineering Ms. Mo Miller Mr. Zack Crenshaw, WSBT WSBT Cameraman Mr. Paul Singleton, Legal Mr. Randy Rompola, Faegre Baker & Daniels Mr. Phil Faccenda, Barnes & Thornburg Mr. Rick Billo, University of Notre Dame Mr. Rich Bellis, University of Notre Dame Mr. Tim Sexton, University of Notre Dame Mr. Jim Bognar Mr. Erin Blasko, South Bend Tribune Mr. Timothy Flanagan, University of Notre Dame Ms. Laura Zell, University of Notre Dame Ms. Veronica Smith Mr. Mark Seaman Ms. Catherine Pinge, Edison Lakes Mr. Cecil Eastman, Controller's Office Ms. Beth Leonard Inks, Director, Admin & Fin. South Bend Redevelopment Commission Regular Meeting — August 28, 2014 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, August 14, 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, August 14, 2014. 3. APPROVAL OF CLAIMS 324 AIRPORT AEDA Heppenheimer & Korpal Professional Corp. St. Joseph County Treasurer DHA South Bend Water Works Hull & Associates Tri County News Meridian Title Corporation DHA Plews Shadley Racher & Braun 420 FUND TIF DISTRICT -SBCDA GENERAL DTSB South Bend Water Works South Bend Tribune 430 SOUTH SIDE DEVELOPMENT AREA Key Bank National Association Tri County News Christopher B. Burke Engineering, LLC DLZ 550.00 Tax Title Deeds 2 Parcels 716.09 Property Taxes Accrued Since Tax Sale 2,850.00 Survey Lot 7, Ignition Pk 265.14 Ardnire Trl /Prast Trl 14,450.37 Consulting Services 54.11 Notice to Bidders 100.00 1504 S Kemble / Vac. Lot -Main 4,450.00 Legal Description 14,367.40 Various projects 1,817.03 Parking Surface Lots 41.29 325 S Lafayette Blvd 56.78 Notice to Bidders 11,410;00 Purchase ROW Bowen St 57.92 Notice to Bidders 1,833.75 5 pts Utility Relocation Design 420.00 Bowen Sidewalk RW $53,439.88 Upon a motion by Mr. Downes, seconded by Ms. Schey and unanimously carried, the Commission approved the Claims submitted August 28, 2014. 4. COMMUNICATIONS There were no Communications. 2 South Bend Redevelopment Commission Regular Meeting – August 28, 2014 :AK1711111 i7. Q 111 There was no Old Business. However, Ms. Schey wanted to thank both Lawrence Meteiver, Commission Attorney and Cheryl Phipps, Commission Recording Secretary for their years of service to the City. Both of them are retiring as of August 29, 2014. They were honored with a round of applause from those in attendance. 6. NEW BUSINESS A. South Bend Central Development Area There was no business in the South Bend Central Development Area. B. Northeast Neighborhood Development Area (1) Resolution 3228 designating and declaring certain areas as redevelopment areas and adding certain territory from the South Bend Central Development Area for the purpose of amending the boundaries of the Northeast Neighborhood Development Area and the Northeast Neighborhood Development Area Allocation Area No. 1 and approving an amendment to the Development Plan for said area Mr. Relos asked that the presentations on item 6B(1), 6C(1) and 6 E(1) be made together as they are inter - related. The Commission approved the combined presentation. Mr. Ford explained the resolutions being considered initiate the process for re- aligning several of our TIF districts. This is an opportunity for fiscal stewardship, economic development and following through with the plan-driven redevelopment agenda. By amending these area's plans to realign their boundaries, the Commission will be able to strategically focus its resources on current priorities while also retiring those TIF districts that have successfully served their purpose. It is important to note, with these proposed changes, the percentage of current assessed value of the TIF areas will go from 30.6% to 30.8 % -- roughly a flat amount. By changing the boundaries we are able to capture the locations of several of the City's current priorities. Key aspects of the proposed realignment include: Airport Economic Development Area (AEDA) – Expansion to include targeted areas along Lincolnway West and Western Avenue that are the focus of the 2014 Main Streets Revitalization Plan —also referred to as "the Corridor Plan", as well as a portion of the SBCDA (Downtown TIF) and the Central Medical Development Area that are west of the St. Joseph River. Central Medical Development Area (CMDA) – Will retire one year early, at the end of 2014, which will release that increment and reset the base. That will have a positive South Bend Redevelopment Commission Regular Meeting — August 28, 2014 6. NEW BUSINESS (CONT.) B. Northeast Neighbohood Development Area (1) continued effect on the other local taxing units. This area will then be reincorporated into the expanded AEDA. Douglas Road Economic Development Area (DREDA) — We are looking to expedite the retirement of this TIF by 2018, if not earlier, as we repay the debt service commitments from the TIF area. Northeast Neighborhood Development Area (NNDA) — Will expand to include a portion of the SBCDA (Downtown TIF). That portion being the area east of the St. Joseph River as well as an area between LaSalle and Wayne west of Eddy, and along Northside Boulevard and along Mishawaka Avenue until Adams High School and IUSB (their western edge). South Bend Central Development Area ( SBCDA or Downtown TIF) — Will retire and be reallocated with those portions west of the St. Joseph River to join the AEDA and that which is east of the River will be joined the NNDA. It will also include contraction of the Studebaker Museum campus. South Side Development Area (SSDA) — Expansion will include the Scottsdale Community Center on York Road —the abandoned pool which we see as a future redevelopment opportunity. We will retire the Erskine Village Association area when debt is fully repaid in or about 2018. West Washington Chapin Development Area (W WCDA) — We will realign a portion of the south and east area into the AEDA and will seek to retire this area by 2018. With the expected retirement of TIF areas as mentioned, in or about 2018, we would have only 3 TIF areas remaining within the City: AEDA, NNDA, and SSDA. The realignment process itself has presented an opportunity to improve the accuracy of our information. Through a parcel by parcel analysis, DCI staff have been able to update the records on over 1,120 parcels and eliminate discrepancies between City and County records for over 890 properties. This information will enable more precise budgeting and improve our collections. 4 South Bend Redevelopment Commission Regular Meeting – August 28, 2014 6. NEW BUSINESS (CONT.) B. Northeast Neighborhood Development Area (1) continued... The proposed schedule to implement the boundary change process is: 8/25/14 – Redevelopment Commission Declaratory Resolutions passed 9/16/14 – Area Plan Commission to review for alignment with the City's development plan and adopt an approving order 9/22/14 – Common Council Declaratory Resolution for approval 9/23/14 – Upon approval by Area Plan Commission and Common Council, notices will be mailed and published for a public hearing at the Commission's October 16' meeting 10/16/14 – Redevelopment Commission Confirming Resolution presented for consideration Staff requests approval of Resolution No. 3227, 3228, and 3229, to begin the process of amending the plans for the AEDA, NNDA, and SSDA, and to authorize the publication of a notice of public hearing. Mr. Wruble asked what the plan was for the Scottsdale Pool. Mr. Ford answered there are no plans, but we consider it an opportunity and this is the first step in enabling us to do something. Dr. Varner noted that it is a problem which has been ignored for about 25 years and the City will ultimately have to address it so he asked Mr. Ford to include it in the boundary change. Dr. Vamer noted he had read in the 8/28/14 newspaper that this boundary change would result in an increase in acreage and was somewhat surprised by that. He would like to see staff prepare information for the public on the expected revenues for the TIF districts, as modified, over the next 3 -4 years. It would also be helpful to note how this affects the City's General Fund. Mr. Ford responded that we have received a draft of the financial information from Umbaugh and anticipate that information to be a key part of the on -going presentations on this matter. Initial indications are that these changes will help to alleviate the impact of the circuit breaker law on the City's finances because we are increasing a larger denominator —you have more assessed value —which reduces the pressure of the circuit breaker which enables the City levy to capture more of its anticipated levy. It will also have a direct cash benefit as it will increase the funds going to the other taxing units. 5 South Bend Redevelopment Commission Regular Meeting – August 28, 2014 6. NEW BUSINESS (CONT.) B. Northeast Neighborhood Development Area (1) continued... Dr. Varner stated these effects need to be re- iterated to the public often so that it becomes clearly understood. He also noted he found the proposed timeline to be aggressive because this matter will likely generate more questions than anticipated, even with the best attempt at clarity. We want to ensure the public has a good understanding. Mr. Ford emphasized staff is committed to answering all questions. The timeline was established with an eye toward completing the process in conjunction with the passage of the 2015 City budget. We understand we have an opportunity to set the budget before October 31' or after January I". So, we can amend the budget(s) in early 2015, if necessary. Ms. Schey echoed Dr. Varner's comments about the timeline. Commissioners were given the maps on Monday, August 25', as is normal, for consideration at today's meeting. There is much research to be done. As Deputy Mayor Mark Neal noted in his opening comments about the 2015 budget, the circuit breaker has dropped South Bend's funding by 31 %. These losses have been increasing each year and will continue to grow resulting in cuts to City expenditures to adapt to these changes. She asked what percentage of the City's land would be captured by the TIF? Mr. Ford answered we are currently at 34% of land in TIF areas and under the new boundaries would be at 37 %. Most importantly, from the fiscal position, the change would be flat —as noted previously —from 30.64% to 30.85 %. This still includes the West Washington TIF. Mr. Ford further explained staff had considered carving out certain sections but found some options to transfer roughly $300,000 from local taxing units to the State. Weighing fiscal stewardship for our local community, we opted to avoid those trade- offs. The TIFs are an option to fund infrastructure by taking pressure off the General Fund. Ms. Schey questioned whether we are expanding the intended scope of TIF as she does not see Downtown as blighted. She also believes Downtown already has a number of funds dedicated to its area. She further pointed out an area in the expansion and asked whether it is in the Near Northwest Neighborhood and doesn't this area have benefit of CDBG dollars? Ms Schey was concerned that some areas of town do not have specialized funds available to them. Mr. Ford noted that area Ms. Schey identified is the right of way of the rail —the former coal line —which goes up to the Drewrey's parcel. It is in the Near Northwest part of town, but we are unsure if it is within the NNN's defined boundaries. This was identified in the Corridor Plan as an opportunity to build a trail 0 South Bend Redevelopment Commission Regular Meeting – August 28, 2014 6. NEW BUSINESS (CONT.) B. Northeast Neighborhood Development Area (1) continued... Mr. Rompola clarified that the Airport is an Economic Development Area so is more focused on jobs, but the existing Downtown TIF area was designated as a Redevelopment area —a blighted area —when it was established. The statute has changed and no longer talks about blight, but rather an area needing redevelopment. The inclusion of the Lincolnway West and Western Corridors is in some part trying to be proactive and anticipating future changes to the TIF legislation. Whereas, under current law, we could possibly make expenditure along the corridors without having them actually included in the TIF boundaries (but serving the TIF), it is anticipated the Legislature may change that provision to exclude the option of serving the greater TIF area. Several cities are using this rationale when declaring or expanding their TIF districts. Mr. Inks asked whether the Downtown TIF (aka SBCDA) is being released. Mr. Ford answered no, the Central Medical is being released, but not the Downtown. Mr. Relos added that the portion of the SBCDA west of the River is being transferred AEDA and the SBCDA portion east of the River is being transferred to the NNDA. Mr. Inks asked how these changes affect the life of each of the TIFs under current legislation. Mr. Rompola answered the existing areas which are being transferred are under the new statutory amendment so that the "legacy TIF" of the Downtown and Airport (or any which did not originally have an expiration date) would have an expiration date of 2025 or after any supported debt is retired — whichever is later. The new expansion areas would have a 25 year limitation. However, some of the TIFs were expanded over the years and some of those pockets may have their own termination dates. So, essentially everything which is being transferred will keep their existing termination dates and nothing will be extended unless new debt is added. Mr. Inks also asked for clarity on the percentage of assessed value (AV) for the area. As presented, AV is going up slightly but wouldn't that be total AV for the area - -- wouldn't Increment AV be going down because there are some areas which are being released? Also, has staff given any thought to capping the annual amount of TIF that is used by Redevelopment? This would allow at least a partial sharing of AV from new development with the other taxing units. Mr. Ford answered that this geographic change allows for a more plan- driven agenda such as the Corridor Plan's specific cost of services. In addition, because we have gone through a parcel -by- parcel analysis we have a better understanding of what we should receive and can follow up more effectively. There is also a direct correlation between TIF expenditure and job creation —this year it is about $17,000 /job created (almost 1300 jobs announced to date South Bend Redevelopment Commission Regular Meeting — August 28, 2014 6. NEW BUSINESS (CONT.) B. Northeast Neighborhood Development Area (1) continued in 2014). Part of the value of TIF is its ability to be responsive to business opportunities as they present themselves. Mr. Inks concurred but wondered if there would be value in deciding up front that the first "x" amount would be used by Redevelopment, but the remainder be released to other jurisdictions. Mr. Ford agreed that this issue should be part of the conversation on City finances—cannot think of TIF in isolation. So, if there are ways we can address all City needs together particularly items relating to economic development —such as infrastructure costs —we certainly are willing to do so in the name of fiscal stewardship. Mr. Rompola added the AV which is created can sometimes be used as an incentive for creating the AV in the first place —as was done in the South Side Development Area. Dr. Varner stated this is the kind of discussion needed. To the administration's credit, we are currently using a benchmark of approximately 15% for the maximum City investment in projects. An additional discussion needs to include items such as: should we use TIF to support a project that's in the pipeline or use TIF to drive projects which are not there yet. One is a direct benefit, the other is speculative in nature. Historically, cities do not seem to be too good at speculation. And, if we decide we are using the funds exclusively for the direct benefit project then we could look at capping the TIF as suggested by Mr. Inks. Initially, Redevelopment was set up to spend bond proceeds as approved by Council or grant money, etc., not necessarily to approve speculative projects. All these issues are part of the discussion which needs to occur —which is why he believes the proposed timeline is constrained. Consideration of Resolution No. 3228 — Upon motion by Mr. Downes, seconded by Mr. Inks and a majority approval, the Commission approved Resolution No. 3228 designating and declaring certain areas as redevelopment areas and adding certain territory from the South Bend Central Development Area for the purpose of amending the boundaries of the Northeast Neighborhood Development Area and the Northeast Neighborhood Development Area Allocation Area No. 1 and approving an amendment to the Development Plan for said area. Ms. Schey cast a dissenting vote stating that it is because the geographic area of the TIF has increased. She looks forward to the continuing discussion on the matter and may change her mind at her later opportunities to vote on the issue. South Bend Redevelopment Commission Regular Meeting — August 28, 2014 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) Resolution 3229 designating and declaring certain areas as economic development areas to amend the boundaries of the Airport Economic Development Area by adding the remainder of the South Bend Central Development Area, certain territory of the West Washington - Chapin Development Area and certain expansion areas to the Airport Economic Development Area, designating such territories and areas as part of the Airport Economic Development Area Allocation Area No. 1 and approving of an amendment to the Development Plan for the Airport Economic Development Area Consideration of Resolution No. 3229 - Upon motion by Mr. Downes, seconded by Mr. Inks and a majority approval, the Commission approved Resolution No. 3229 designating and declaring certain areas as redevelopment areas to amend the boundaries of the Airport Economic Development Area by adding the remainder of the South Bend Central Development Area, certain territory of the West Washington - Chapin Development Area and certain expansion areas to the Airport Economic Development Area, designating such territories and areas as part of the Airport Economic Development Area Allocation Area No. 1 and approving of an amendment to the Development Plan for the Airport Economic Development Area. Ms. Schey cast a dissenting vote stating that it is because the geographic area of the TIF has increased. She looks forward to the continuing discussion on the matter and may change her mind at her later opportunities to vote on the issue. (2) Economic Development Agreement with University of Notre Dame du Lac (Turbo Project in Ignition Park) Mr. Fielding stated the agreements before the Commission were the continuation of the projects brought to the Commission in June and July. The first is a development agreement which clearly lays out the investment, the timing of the investment and how the investment will be made by the Redevelopment Commission for the Turbo project at Ignition Park. Attached to that document is a copy of the proposed lease which will be utilized once the equipment is purchased. Upon motion by Ms. Schey, seconded by Mr. Downes and unanimously carried, the Commission approved the Economic Development Agreement with the University of Notre Dame du Lac for the Turbo Project in Ignition Park (3) Amendment to Memorandum of Understanding with the City of South Bend and the University of Notre Dame du Lac (related to revenues from Certified Technology Park) Mr. Fielding stated this is a document which amends the Certified Technology Park (CTP) agreement between the University and the City. Originally, each entity was to receive one- 0 South Bend Redevelopment Commission Regular Meeting — August 28, 2014 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued... half of the estimated $5M in CTP proceeds to support both Innovation Park and Ignition Park. Given the extraordinary need of the Turbo Project in Ignition Park, Notre Dame and the City have agreed that an additional $700,000 of CTP funds will be used by the City to support the project. So, this agreement amends the original terms from a maximum of $2,5M to be spent by the City to a maximum of $3.2M. Upon motion by Ms. Schey, seconded by Mr. Downes and unanimously carried, the Commission approved the Amendment to the Memorandum of Understanding with the City of South Bend and the University of Notre Dame du Lac related to revenues from the Certified Technology Park. Dr. Varner asked how much of the $3.2M remains for expenditure. Mr. Fielding responded all of the funds remain as nothing has been spent from this fund yet. D. West Washington- Chapin Development Area There was no business in the West Washington- Chapin Development Area E. South Side Development Area (1) Resolution 3227 designating and declaring a certain area as a redevelopment area for the purpose of amending the boundaries of the South Side Development Area and its Allocation Area and to amend the Development Plan for the South Side Development Area Consideration of Resolution No. 3229 — Upon motion by Mr. Downes, seconded by Mr. Inks and a majority approval, the Commission approved Resolution No. 3229 designating and declaring a certain area as a redevelopment area for the purpose of amending the boundaries of the South Side Development Area and its Allocation Area and to amend the Development Plan for the South Side Development Area. Ms. Schey cast a dissenting vote stating that it is because the geographic area of the TIF has increased. She looks forward to the continuing discussion on the matter and may change her mind at her later opportunities to vote on the issue. (2) Resolution 3226 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Michigan & Chippewa Intersection Modification Project) 10 South Bend Redevelopment Commission Regular Meeting – August 28, 2014 6. NEW BUSINESS (CONT.) E. South Side Development Area (2) continued... Mr. Kain explained that the Smart Streets project is underway. The project looks at redefining traffic patterns in our community. Two -way streets is one part of the initiative, the Main Street Plan and Corridors Plan are also considered part of it. The other part of this initiative is looking road grids to create more and better economic development opportunities. The project on Jefferson is also part of this visioning. William and Lafayette are the first phase of the two -way conversion project and they are currently underway — expected to be completed by sometime in October. Jefferson Boulevard is also on the same timeline. The next phase of the two -way conversion is converting Main and Michigan Streets into two -way. That portion is more complicated because they are much longer stretches. In addition, as Michigan moves south past Memorial Hospital it is 4 lanes, but separates into two streets and 13 lanes of traffic (some going north, some going south). The distribution of traffic in those lanes is critical to balancing flow throughout the system. In order to balance the system under the new two -way configuration, a series of roundabouts have been suggested. On the north, the first will be at Bartlett, a second at Marion. The same idea needs to be used on the south. So, a roundabout is proposed at Chippewa and Michigan. We have had several meetings on the initiative since last fall. We had the final presentation in May and in the past few days had a meeting with residents in the area along Chippewa. It is time to move from concept to engineering for the project, so staff is requesting we authorize Public Works to enter into contract for the engineering of this roundabout. The amount of the contract will be $562,050 for professional services. Ms. Jones asked how this roundabout will impact the work the Commission recently performed on Fellows Street. Mr. Kain answered it should only help traffic flow become more efficient. Dr. Varner asked whether we have room for modifications in the system design if, as we incrementally implement these changes, we find some of our calculations on traffic flow are in error. He understands the savings in not signalizing intersections, but if distribution does not occur as predicted, where do we go? Mr. Kerr explained that engineers look at growth patterns as they develop the plans. In addition, they strive to create a model which allows for modification over time. The model as proposed will allow us to make improvements. Mr. Kain noted the concept is moving us back to some traditional planning concepts. The downtown mall and highway -like streets in the urban core did not work in many cities across the country. Also, the roundabouts as designed will allow expansion from one to two lanes if future traffic patterns warrant. 11 South Bend Redevelopment Commission Regular Meeting — August 28, 2014 6. NEW BUSINESS (CONT.) E. South Side Development Area (2) continued Upon motion by Ms. Schey, seconded by Mr. Downes, and unanimously carried, the Commission approved Resolution 3226 approving and authorizing the execution of an Amendment to the Addendum to the Master Agency Agreement (Michigan & Chippewa Intersection Modification Project). F. Douglas Road Development Economic Area There was no business in the Douglas Road Economic Development Area 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., September 11, 2014. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, the meeting was adjourned at 10:20 a.m. Brock Zeeb, Director, Economic Resources Marcia I. Jones, President 12