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HomeMy WebLinkAbout2 Minutes 9-11-14 SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING September 11,2014 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 Ms. Valerie Schey Mr. Stan Wruble Members Absent: Mr. Greg Downes Legal Counsel: Mr. Paul Singleton, Esq. Redevelopment Staff: Mr. David Relos, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mr. Scott Ford, Executive Director Mr. Brock Zeeb, Director, Economic Resources Mr. Chris Fielding, Director, Business Investment Ms. Kathy Hahn, Analyst, Community Investment Mr. Conrad Damian Ms. Mo Miller Ms. Maria Catanzarite, WNDU WNDU Cameraman Mr. Rich Hill, Faegre Baker&Daniels Mr. Dave Rafinski, JPR Ms Annie Chang, WSBT WSBT Cameraperson Mr. Demarco Brown Mr. Erin Blasko, South Bend Tribune Mr. Mark Seaman, Prism Ms. Chloe Lawson, Prism Mr. Joe Hart, South Bend Silver Hawks Ms. Jennifer Hockenhull Controller's Office Mr. Terry Pl?? Ms. Beth Leonard Inks, Director,Admin& Fin. 1 South Bend Redevelopment Commission Regular Meeting—September 11, 2014 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, August 28, 2014 Upon a motion by Ms. Schey, seconded by Mr. Inks and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Thursday, August 28, 2014. 3. APPROVAL OF CLAIMS Claims submitted Explanation of Project REDEVELOPMENT COMMISSION Redevelopment Commission Claims submitted Sept 11, 2014 for approval 324 AIRPORT AREA Meridian Title Corporation 300.00 Ardmore Trail Abstract/Title Search /Title Report Appraisal Services, Inc. 1,000.00 Ardmore Trail R.E. Pitts &Associates, Inc. 1,150.00 Appraisal Report IDEM 501.07 Service Weaver Boos Consultants 20,267.23 Ivy Tower Interstate Environmental Services 457,820.59 Removal of Lead Based Paint Faegre Baker Daniels 11,363.22 Nello Corp. /TIF Consolidation Tri County News 57.92 Notice to Bidders Torti Gallas And Partners 4,200.00 West Side Corridors Market Analysis/Master Plan South Bend Water Works 99.38 4212 Fellow St. /4224 Fellow St Abonmarche 17,650.00 Ignition Park 420 FUND TIF DISTRICT-SBCDA GENERAL South Bend Water Works 221.88 410 W Wayne St. DTSB 26,625.00 Beautification 430 FUND SOUTH SIDE TIF AREA#1 Meridian Title Corporation 75.00 3939 S Michigan St. Subtotal by Column $541,331.29 Upon a motion by Dr. Varner, seconded by Ms. Schey and unanimously carried, the Commission approved the Claims submitted September 11, 2014. 2 South Bend Redevelopment Commission Regular Meeting—September 11,2014 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. South Bend Central Development Area (1) Memorandum of Understanding—Swing Batter Swing LLC Mr. Relos explained the MOU covers a batting cage facility at the Cove. The facility will be owned and operated by Swing Batter Swing, LLC, owner of the South Bend Silver Hawks. It will be open year round and available for public use when not being used for training by the team. The MOU is between the Parks Department, Board of Public Works(BPW),the Redevelopment Commission, and Swing Batter Swing, LLC. Parks currently owns the property where the facility will be constructed but the property will be transferred to the BPW in early October. Once the parcel is added to the Commission's acquisition list,the BPW will transfer it to the Commission where it will go through the disposition process and ultimately transferred to Swing Batter Swing, LLC. At the same time,the surrounding property will be subdivided. Parcels in this block are owned by Parks and some by the Commission. In addition,the zoning varies from parcel to parcel. We intend to bring a professional services contract to the Commission which will allow us to consolidate/update ownership and zoning in an effort to facilitate future development potential on the block. The Swing Batter Swing project will be privately funded and encompass approximately 17,700 gross square feet. It will contain 6 indoor tunnels, 2 regulation pitching mounds, and an observation deck. It is estimated to cost about$1M to construct. The facility will enhance the Cove,the team and the larger region. Staff requests Commission approval of this project. Mr. Dave Rafinski from JPR distributed a proposed site plan, floor plan, and conceptual renderings. Mr. Joe Hart from the South Bend Silver Hawks commented the addition of the facility will lengthen the duration of the team's activities in downtown from 5.5 months to about 12 months annually. Normally, a team would only build a facility with 2 batting cages. The larger facility allows for more community year round use. Mr. Wruble asked about the future of the Major League affiliation. Mr. Hart noted the Silver Hawks contract was up with the Arizona Diamondbacks, so they are free to talk with other teams in the next couple weeks. The Diamondbacks have been wonderful to work with, but it may be nice to connect with a more local team if possible. All of the recent improvements to the Cove will help to attract other teams. 3 South Bend Redevelopment Commission Regular Meeting—September 11,2014 6. NEW BUSINESS A. South Bend Central Development Area (1) continued.... Mr. Inks commented this project is a great addition to the ballpark and applauds the private investment and commitment to the community and supports the project 100%. Dr. Varner sees it as a deferred purchase plan for the City of South Bend because at the time the team leaves the City has a right of first refusal. He further asked whether there would be any land cost recouped by the Commission. Mr. Relos explained the property would be transferred at no cost. Dr. Varner is also concerned that the project, as initially proposed, was 11,000 sf for a$1M estimated cost. Now the square footage has increased to 17,700,but the cost estimate has not increased. His concern is that the City may eventually feel pressured to buy the facility at a price which is unknown at this time. Mr. Ford stated that the intent was that the facility would go with the Cove. So, if in the future someone else owns the team, they would be the entity most interested in the batting cages. But, if someone was trying to split this from the ballpark,the City would have the right of first refusal to stop that split. Dr. Varner clarified since this project is in a TIF district,the taxes generated stay within the TIF. Mr. Relos concurred, but noted that only applies to taxes on real estate. Equipment and other personal property taxes do not go into the TIF and instead accrue to the General Fund. Dr. Varner continues to be concerned the agreement will result in a future liability for the City although it is technically a right of first refusal. Upon motion by Mr. Inks, seconded by Ms. Schey, but opposed by Dr. Varner,the Commission approved the Memorandum of Understanding with Swing Batter Swing, LLC. B. Airport Economic Development Area (1) Resolution No. 3230 Approving and Authorizing the Execution of an Addendum to the Master Agency Agreement(Norres North America Equipment Purchase Project) Mr. Relos noted that on August 14, 2014,the Commission entered into an Economic Development Agreement and Equipment Lease with Norres,who agreed within the next 4 years to invest a minimum of$1,866,000 in new capital projects within the City and to create 25 new jobs. For its part,the Commission agreed to purchase and lease up to $200,000 in equipment. This addendum would allow the Board of Public Works to act as the Commission's agent in purchasing that equipment. Staff requests approval of the addendum to allow the project to move forward. 4 South Bend Redevelopment Commission Regular Meeting–September 11, 2014 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (1) continued... Upon motion by Mr. Inks, seconded by Ms. Schey, and unanimously carried the Commission approved Resolution No. 3230 Approving and Authorizing the Execution of the Addendum to the Master Agency Agreement for the Norres North America Equipment Purchase. (2)Resolution No. 3231 Approving the Fair market Value of Property in the Airport Economic Development Area (Lot 1 Ardmore Trail Minor Subdivision aka Ardmore/Prast, parcels 018-2188-7089 and 018-2191-719202—property currently being used by Unity Gardens) Mr. Relos made his presentation on 6B(2), 6B(3) and 6B(4) at the same time since they are all pieces of the Commission disposition process for the same property. Resolution No. 3231 sets the fair market value for Lot 1 of the Ardmore Trail Minor Subdivision, currently used by Unity Gardens. He noted that the property was 2 parcels,we are subdividing the property to take out a section of the eastern edge to allow for a buffer with the St. Vincent de Paul property—in case some development occurs there in the future. Staff requests approval of these steps. Mr. Inks spoke for the record that he is a member of the Unity Gardens Board of Directors and wanted to ensure there was no conflict of interest. He has no financial gain so it was agreed there was none. Upon motion by Ms. Schey, seconded by Dr. Varner and unanimously carried the Commission approved Resolution No. 3231 Approving the fair market value of the property Lot 1 of the Ardmore Trail Minor Subdivision(parcels 018-2188-7089 and 018-2191- 719202—currently being subdivided)to $97,500. (3) Approval of Bid Specifications and Design Considerations for Lot 1 Ardmore Trail Minor Subdivision Upon motion by Ms. Schey, seconded by Dr. Varner and unanimously carried the Commission approved the bid specifications and design considerations for the sale of the property Lot 1 of the Ardmore Trail Minor Subdivision (parcels 018-2188-7089 and 018- 2191-719202). 5 South Bend Redevelopment Commission Regular Meeting—September 11, 2014 6. NEW BUSINESS B. Airport Economic Development Area (cont.) (4) Approval of Request to Advertise for Sale of Lot 1 of the Ardmore Trail Minor Subdivision Upon motion by Ms. Schey, seconded by Dr. Varner and unanimously carried the Commission approved the request to advertise for the sale of the property Lot 1 of the Ardmore Trail Minor Subdivision(parcels 018-2188-7089 and 018-2191-719202). (5) Resolution No. 3216 Approving the Fair Market Value of Property in the Airport Economic Development Area (Blackthorn Golf Course) Mr. Fielding made his presentation on 6B(5), 6B(6) and 6B(7) at the same time since they are all pieces of the Commission disposition process for the same property. At the March 26, 2014 meeting of the Commission staff requested permission to seek appraisals of the course. The bonds on the golf course were paid off in 2013 and the course was subsequently transferred from the Redevelopment Authority to the Redevelopment Commission. At the June 26, 2014 meeting the appraisals were presented to the Commission with the average of the 2 appraisals being$1,655,000. Staff has received quite a few inquiries about the property. In offering the course for sale, our offering specifications will require the property remain a championship golf course and amenity for the community. The request before the Commission today is to continue the disposition process as required by State law in able to see what opportunities may exist for the course that would not require additional taxpayer support. The bids would be required to submit plans for any anticipated additional development on the property as well as a management plan for operations and management of the course. The intention is the course will always be managed by a professional, championship level management company. Ms. Schey noted there are sizable unmet capital needs for the course. She is disappointed that the minimum asking price is $1.6M and asked how much the City has invested in the course. Mr. Fielding replied it was just over$7.5M. He noted that some of the interest expressed thus far includes additional development on some of the side lots, while still maintaining the operation of the 18-hole course as it currently exists. He also reminded the Commission the bidders would be paying taxes on the course and any additional development which would help us to recoup the $7.5M in taxpayer expense. Ms. Schey clarified that once we sell the course all the City's requirements for management and upkeep of the property are gone. Mr. Fielding concurred except that City staff would need to ensure that the deed restrictions continue to be upheld, but that would be expected to only take some minor staff time, no further out-of-pocket expense. Ms. Schey stated it was a good thing. 6 South Bend Redevelopment Commission Regular Meeting—September 11, 2014 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (5) continued... Dr. Varner noted that the value of the course is based on the value of the golf course as a business, not the value of the land itself. He pointed out it has been reported in the newspaper that the City may also be interested in selling Elbel Golf Course.. He believes that anyone interested in buying Blackthorn would see it as a more valuable commodity if Elbel no longer exists as a golf course. If we receive a full cost offer we may close the deal before the decision is made on Elbel. Mr. Fielding noted that the question of Elbel only came up once from the interest we have received thus far. Dr. Varner is enthused we are considering the sale,he wants to ensure we are careful on how we proceed. Upon motion by Ms. Schey, seconded by Dr. Varner, and unanimously carried,the Commission approved Resolution No. 3216 Approving the Fair Market Value of Property in the Airport Economic Development Area(Blackthorn Golf Course). (6) Approval of Bid Specifications and Design Considerations (Blackthorn Golf Course) Upon motion by Ms. Schey, seconded by Dr. Varner, and unanimously carried,the Commission approved the bid specifications and design consideration for the sale of Blackthorn Golf Course. } (7) Approval of Request to Advertise for Sale of Blackthorn Golf Course Upon motion by Ms. Schey, seconded by Dr. Varner, and unanimously carried,the Commission approved staff request to advertise for the sale of Blackthorn Golf Course. 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 Economic Development Area There was no business in the Douglas Road Economic Development Area. 7 South Bend Redevelopment Commission Regular Meeting—September 11, 2014 6. NEW BUSINESS (CONT.) G. Other (1) Resolution No. 3232 Setting a Public Hearing on the Appropriation of Tax Increment Financing Revenues from Various Allocation Areas and Other Redevelopment Funds for the Payment of Certain Obligations and Expenses Related to their Respective Allocation Areas and Other Related Matters (Public Hearing Date: October 16,2014) Mr. Zeeb noted this is the beginning of the 2015 appropriation process. We will bring further detail to the October 16, 2014 meeting. Ms. Schey asked, in relation to the TIF merger/expansion now under consideration,what happens to the funds in a TIF fund when the fund expires, merges or is closed. Mr. Ford explained there are 2 possible scenarios. In the case of a TIF which closes or expires,the funds stay where they are and continue to be used for the original purpose until used up. In the case of a merger,the funds are then merged together. Upon motion by Dr. Varner, seconded by Ms. Schey, and unanimously carried,the Commission approved Resolution No. 3232 setting the public hearing date for appropriation of all Redevelopment funds for October 16, 2014. Mr. Ford informed the Commission the City has expanded the timeline for consideration of the TIF expansion/merger to increase the time for public review and comment. H. Ratification of Temporary Use Agreements (1) Mr. Relos noted the Temporary Use Agreement is with Michiana Military Stand Down for Returning Veterans and Homeless Veterans. The event is to be held September 25, 2014. Upon motion by Mr. Inks, seconded by Ms. Schey, and unanimously carried,the Commission approved the Temporary Use Agreement with Michiana Military Stand Down for Returning Veterans and Homeless Veterans on September 25, 2014. 7. PROGRESS REPORTS A. Tax Abatement Ms. Kathy Hahn informed the Commission that Swing Batter Swing received their designating resolution on Monday, September 8, 2014 from the Common Council. It is a $1M project and they are requesting an 8 year real property tax abatement. Taxes to be abated are $103,256; taxed to be paid over the 8 years would be $143,508 and the project will create 1 job with a payroll of$30,000. Dr. Varner asked if there is an expectation that they will request an abatement for equipment. Mr. Ford replied no. 8 South Bend Redevelopment Commission Regular Meeting—September 11, 2014 7. PROGRESS REPORTS (CONT.) B. Common Council Dr. Varner noted that the total of the Redevelopment appropriations for 2015 will be around $41M. As the Council considers all of the City's finances and the many projects which need funding, it will be interesting to see how the discussion moves forward on the TIF expansion/merger. 8. NEXT COMMISSION MEETING The Next Regular Meeting of the Redevelopment Commission is scheduled for 9:30 a.m., September 25,2014. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission,the meeting was adjourned at 10:10 a.m. Broc Zeeb, Director, Economic Resources Marcia I. Jones, President 9