HomeMy WebLinkAboutagenda item 2015 0430 rdc 02aSOUTH BEND REDEVELOPMENT COMMISSION
RESCHEDULED REGULAR MEETING
April 15, 2015
9:30 a.m. 227 West Jefferson Boulevard
Presiding: David Varner, Vice President South Bend, Indiana
The meeting was called to order at 9:31 a.m.
1.ROLL CALL
Members Present: David Varner, Vice President
Don Inks, Secretary
Greg Downes
Gavin Ferlic
John Anella
Members Absent: Marcia Jones, President
Legal Counsel: Benjamin Dougherty, Esq.
Redevelopment Staff: David Relos, Associate II
Debrah Jennings, Associate I
Tracy Oehler, Recording Secretary
Others Present: Pete Buttigieg, Mayor
Scott Ford, Executive Director
Brian Pawlowski, Deputy Chief of Staff
Chris Fielding, Assistant Executive Director
Jitin Kain, Director
Elizabeth Leonard-Inks, Director
Aaron Kobb, Associate III
Jacob Alexander, Associate
Conrad Damian
Mo Miller
Mark Seaman
Zach Crenshaw
Leanna Beleu
A.J. Patel
Norman Patel
Joe Kernan
ITEM: 2.A.
South Bend Redevelopment Commission
Rescheduled Regular Meeting – April 15, 2015
Page 2
2. APPROVAL OF MINUTES
A. Approval of Minutes of the Regular Meeting of Thursday, March 26, 2015.
Upon a motion by Commissioner Downes, seconded by Commissioner Ferlic the motion
carried 4-0 (President Jones absent), the Commission approved the Minutes of the
Regular Meeting of Thursday, March 26, 2015.
3. APPROVAL OF CLAIMS
324 Fund River West Development Area
System Clean Inc. 10,556.00 Equipment Walk Behind Floor Scrubber
MGLM Architects, LTD 7,369.82 Southeast Neighborhood Master Plan
Fabe Custom Downstream Systems 29,078.00 Equipment Purchase for Norres North
Interstate Environmental Service 75,898.92 Removal of Lead Based Paint at Ivy Tower
Meridian Title Corporation 2,535.00 Document Preparation
DHA 683.10 Boundary Maps for Reconfigured TIF District
Barnes & Thornburg LLP 4,440.00 Legal Services
Abonmarche 1,650.00 Colfax & Hill Drainage Improvements
DLZ 5,858.00 Engineering
Weaver Consultants Group 6,987.22 Ivy Tower
Abonmarche 24,850.00 Ignition Park Infrastructure Phase 1C
Buildings 1 and 2
Kolata Enterprises, LLC 4,395.00 Environmental & Brownfields Consulting
Balint/Ryder Handling Equipment 34,800.00 Equipment Purchase
R.E. Pitts & Associates, Inc. 1,250.00 Appraisal Report Coveleski Park Replat
Lots 2, 3, and 4
David Waszak Appraisals, Inc. 2,700.00 Appraisal Report Coveleski Park Replat
Lots 2, 3, and 4
IDEM 1,745.05 Oliver Plow
Hull & Associates, Inc. 5,773.22 General Consulting & Evaluate
Remedy/ACA/Amend RWP
City of South Bend 18,112.50 Legal Services
422 Fund West Washington Development Area
Troyer Group 7,344.00 City Cemetery Strategic Master Plan
429 Fund River East Development Area
Meridian Title Corporation 2,535.00 Document Preparation
DHA 703.80 Boundary Maps Reconfigured TIF District
430 Fund South Side Development Area #1
Lawson Fisher Associates 31,994.50 Roundabout Intersection Improvement
Meridian Title Corporation 2,535.00 Document Preparation
DHA 683.10 Boundary Maps Reconfigures TIF District
Barnes & Thornburg LLP 2,788.00 Legal Services
287,265.23
Upon a motion by Commissioner Downes, seconded by Commissioner Ferlic the motion
carried 4-0 (President Jones absent), the Commission approved the Claims submitted April
15, 2015.
South Bend Redevelopment Commission
Rescheduled Regular Meeting – April 15, 2015
Page 3
4. COMMUNICATIONS
None.
5. OLD BUSINESS
None.
6. NEW BUSINESS
A. River East Development Area
None.
B. River West Development Area
(1) Economic Update
Mr. Ford stated in 2009 when the National Football College Hall of Fame (HOF)
announced their departure from South Bend, the City has been in engaged in a
community conversation on how best to utilize this community resource. Through
these conversations, three dominant themes emerged: a desire to create an entity
that would be a magnet for visitors and investment in the downtown; the
preservation of the Wall of the Gridiron as a public space for the community; and
finding a sustainable business model that would contribute to the tax base and add
to the vitality of the downtown.
Mayor Buttigieg gave an anecdotal story about patience and how it relates to the
HOF property in making the right choices and gathering accurate information to
ensure a good outcome in meeting the City’s goals.
Mr. Fielding announced the negotiated terms of the project that accomplished all
three of the goals set by the Mayor’s office as previously noted as well as the
creation of 60 new jobs. Staff has completed negotiations with JSK Hospitality (JSK)
for the property and has a signed letter of intent. The tenants of the letter of intent
include the building of a major brand hotel with approximately 120 rooms (it is
approximately a 10 to 12 million dollar project); the HOF will serve as the lobby of
the hotel and space for the development of the company headquarters; the Gridiron
will remain available to the public 30 times per year with a minimum of 60 days’
notice by the City at no cost; the developer’s willingness to dedicate 5,000 square
feet in the lower level at no charge to the City for future opportunities; and the
development of a new retail component along St. Joseph Street. The purchase price
for the Jefferson lot is set at $1.00 where the hotel will be built and the purchase
price for the HOF building will be $1.2 million paid in installments over five years.
JSK has agreed that any failure to take advantage of the option and exercise their
South Bend Redevelopment Commission
Rescheduled Regular Meeting – April 15, 2015
Page 4
right under this option, will immediately revert to a lease between the Commission at
$12.00 per square foot for the upper level and $6.00 per square foot for any space
utilized on the lower level.
A future request will be made for a $700,000 TIF infrastructure to be invested in the
new hotel site and staff will process a nine year tax abatement to be proposed to the
City Council for the new hotel space and a two year vacant building abatement while
under construction. The maintenance cost for the HOF’s HVAC system will be
covered by the Commission for up to 36 months. Staff will assist with obtaining 100
parking spaces in the Leighton garage and is currently working with the Century
Center Board to provide parking for employees at the Century Center parking lot.
The project is expected to generate approximately $5.4 million in revenue net in tax
abatements over the next nine years, which will provide a 4.2 year return on
investments. Staff is requesting permission to countersign the letter of intent and
move into the draft of the development agreement with JSK, which will be brought
back to the Commission at a later date.
Ms. Beleu, representative of the Century Center, addressed the Commission
regarding lost business and the importance of having available meeting space with
connections to the hotels.
A discussion followed between the Commission and staff regarding the proposed
opening date for the hotel being scheduled for the first quarter of 2017 and the tax
abatement requests being brought forth to Council within the next 45 days.
Mr. Patel, representative of JSK Hospitality, stated groundbreaking is proposed
within six months after the finalization of the agreements and expressed how the
SmartStreets project led the company to their decision for purchasing the property.
Upon a motion by Commissioner Downes, seconded by Commissioner Ferlic the
motion carried 4-0 (President Jones absent), the Commission authorized staff to
countersign the letter of intent and to proceed with the development agreement.
(2) Industrial Development Grant Fund Grant Agreement (Indiana Economic
Development Corporation)
Mr. Fielding stated in June 2014, the creation of the ND Turbomachinery facility in
Ignition Park was announced with one of the five partners being the Indiana
Economic Development Commission (IEDC). The State IEDC has awarded the
project $2 million in funding through an Industrial Development Grant and can only
be awarded to a municipality, which the Commission will be the conduit for the
project.
A discussion followed between the Commission and staff that the grant is an
additional $2 million and clarification was made that there is no administrative fees
being collected as this is already a function performed for each project undertaken.
South Bend Redevelopment Commission
Rescheduled Regular Meeting – April 15, 2015
Page 5
Upon a motion by Commissioner Downes, seconded by Commissioner Ferlic the
motion carried 4-0 (President Jones absent), the Commission approved the
Industrial Development Grant Fund Grant Agreement with the Indiana Economic
Development Corporation in the amount of $2 million.
(3) Professional Services Proposal for the Replat of 111 South St. Joseph Street –
Hall of Fame Building (Danch Harner & Associates)
Mr. Relos stated the proposal is to provide a survey to locate existing improvements
and create a 2 or 3 Lot Minor Subdivision for the parcel that encompasses the Hall
of Fame Building in order to keep certain parking areas available for public parking.
Upon a motion by Commissioner Downes, seconded by Commissioner Ferlic the
motion carried 4-0 (President Jones absent), the Commission approved the
professional services proposal for the replat of 111 South St. Joseph Street with
Danch Harner & Associates in a not-to-exceed amount of $6,000.
(4) Construction Invoice for Utility Relocation in Ignition Park South (Comcast
Cable Communications, Inc.)
Mr. Relos stated the construction invoice is for relocation of Comcast’s lines in
Ignition Park South in order to release their easements.
Upon a motion by Commissioner Downes, seconded by Commissioner Ferlic the
motion carried 4-0 (President Jones absent), the Commission approved the
Comcast construction invoice for utility relocation in Ignition Park South in a not-to-
exceed amount of $11,300.
Vice President Varner requested Items 6.B.(5); 6.B.(6); and 6.B.(7) to be considered
simultaneously as they pertain to the disposition of property for the Coveleski Park Minor
Subdivision.
Mr. Relos gave the staff report.
(5) Resolution Nos. 3284, 3285, and 3286 Approving the Fair Market Value of
Property (Lots 2, 3, and 4 of the Coveleski Park Minor Subdivision)
Upon a motion by Commissioner Ferlic, seconded by Secretary Inks the motion
carried 4-0 (President Jones absent), the Commission approved Resolution Nos.
3284, 3285, and 3286 approving the fair market value for Lots 2, 3, and 4 of the
Coveleski Park Minor Subdivision.
South Bend Redevelopment Commission
Rescheduled Regular Meeting – April 15, 2015
Page 6
(6) Approval of Bid Specifications and Design Considerations for Property (Lots
2, 3, and 4 of the Coveleski Park Minor Subdivision)
Upon a motion by Secretary Inks, seconded by Commissioner Ferlic the motion
carried 4-0 (President Jones absent), the Commission approved the bid
specifications and design considerations for Lots 2, 3, and 4 of the Coveleski Park
Minor Subdivision.
(7) Authorization to Publish the Notice of Intended Disposition of Property with
Publication Dates of April 24, 2015 and May 1, 2015 for Property (Lots 2, 3, and
4 of the Coveleski Park Minor Subdivision)
Upon a motion by Commissioner Ferlic, seconded by Secretary Inks the motion
carried 4-0 (President Jones absent), the Commission approved the authorization to
publish the Notice of Intended Disposition of Property with publication dates of April
24, 2015, and May 1, 2015, for Lots 2, 3, and 4 of the Coveleski Park Minor
Subdivision.
(8) Resolution No. 3287 Approving and Authorizing the Execution of an
Addendum to the Master Agency Agreement (Bartlett Street Improvements
Project)
Mr. Kain stated the addendum sets a construction budget for the Bartlett Street
Improvement Project Phase 1 consisting of improvements to the main entrance of
Memorial Hospital, a realignment of Bartlett Street, parking lot improvements, and
the creation of a new roundabout at Bartlett and Michigan. River West Development
Area TIF resources will cover the improvements to the hospital entrance and the
Bartlett Street parking lot and TIF infrastructure bond proceeds are expected to
cover the realignment of Bartlett Street and the roundabout in the amount of $2.6
million.
Upon a motion by Commissioner Downers, seconded by Commissioner Ferlic the
motion carried 4-0 (President Jones absent), the Commission approved Resolution
No. 3287 approving and authorizing the execution of an Addendum to the Master
Agency Agreement for the Bartlett Street Improvements Project in the amount of
$2.6 million.
(9) Resolution No. 3288 Regarding Parking Lease for the Hotel LaSalle
Development Project (The LaSalle Apartments, LLC)
Mr. Relos stated on March 26, 2015, the Commission approved Resolution No.
3282, approving various agreements referenced within the Development Agreement,
one of which was the Parking Lease. To allow LaSalle Apartments, LLC, to include
the parking lot between the LaSalle and Morris and the Waterworks parking lot
fronting Main Street in their title commitment at closing, it is necessary to revise the
South Bend Redevelopment Commission
Rescheduled Regular Meeting – April 15, 2015
Page 7
signing of the Parking Lease now with the effective date remaining the same, i.e.,
upon substantial completion of the project.
Upon a motion by Commissioner Ferlic, seconded by Commissioner Downes the
motion carried 4-0 (President Jones absent), the Commission approved Resolution
No. 3288 regarding the Parking Lease with the LaSalle Apartments, LLC, for the
Hotel LaSalle Development Project.
C. West Washington-Chapin Development
None.
D. South Side Development Area
None.
E. Douglas Road Development Area
None.
7. PROGRESS REPORTS
Mr. Fielding noted two tax abatements were proposed at the Common Council meeting and
both declaratory resolutions were approved. One tax abatement is for Rainbow Daycare for
renovations of a new facility at the corner of Douglas Road and State Road 23. They will be
creating 25 to 30 new jobs with total taxes to be abated in the amount of $63,612 with a
$1,255,000 private investment. The other tax abatement is for Bamar Plastics with the
creation of three new jobs and total taxes abated in the amount of $14,156 over five years
with an investment of $365,000 in new equipment.
Vice President Varner requested on future tax abatement updates the total taxes are stated
in order to clarify how much taxes are actually being paid by the applicant.
8. NEXT COMMISSION MEETING
Thursday, April 30, 2015, at 9:30 a.m.
9. ADJOURNMENT
Vice President Varner adjourned the meeting at 10:03 a.m.
____________________________________ ____________________________________
Brock Zeeb, Director of Economic Resources Marcia I. Jones, President