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HomeMy WebLinkAboutagenda item 2015 0730 rdc 02aSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING July 16, 2015 9:30'a.m. Presiding: Marcia Jones, President 227 West Jefferson Boulevard South Bend, Indiana The meeting was called to order at 9:30 a.m. 1. ROLL CALL Members Present: Legal Counsel: Redevelopment Staff: Others Present: Marcia Jones, President David Varner, Vice President Don Inks, Secretary Greg Downes Gavin Ferlic John Anella Benjamin Dougherty, Esq. David Relos, Associate II Debrah Jennings, Associate I Tracy Oehler, Recording Secretary Scott Ford, Executive Director Chris Fielding, Assistant Executive Director Beth Inks, Director Jitin Kain, Director Chris Dressler, Associate I Michael Divita, Associate I Laura Mazur, Analyst I Jeremy McClements Conrad Damian David Matthews Zach Crenshaw Rich Deahl Matt Powell Dan Boecher Mark Peterson Eric Walker A.J. Patel Norman Patel ITEM: 2.A. South Bend Redevelopment Commission Regular Meeting -July 16, 2015 Page 2 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Thursday, June 25, 2015. Upon a motion by Secretary Inks, seconded by Commissioner Downes and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Thursday, June 25, 2015. 3. AP PROV AL OF CLAIMS 324 Fund River West Development Area Wells Fargo DHA Shaffner Heaney Associates Inc. BSCO, Inc. DHA Interstate Environmental Services Weaver Consultants Group Underground Pipe & Valve Inc. Tri County News IDEM Balint Ryder DHA American Structurepoint Inc. Abonmarche Consultants South Bend Tribune 429 Fund River East Development Area ssww 430 Fund South Side TIF Area No. 1 Lawson-Fisher Associates P.C. DLZ Meridian Title 58,500.00 310.00 218,236.85 384,234.00 1,300.00 152,942.40 9,546.91 146,249.96 86.58 328.27 56, 145.00 850.00 5,088.26 665.00 90.60 3,250.00 1,878.50 140.00 3,049.65 435 Fund SSDA TIF Area No. 3 Erskine Village Wells Fargo 130,835.00 $1, 173,726.98 South Bend RA Lease Rental Revenue Ref Bonds 2009 (Morris Performing Arts Center) Land Surveyor Fac;ade ACM Panel for Ignition Park Building Equipment Purchase for Nello Survey Replat of 111 South Street Removal of Lead Paint at Ivy Tower Ivy Tower Water Construction Materials Notice to Bidders Remediation Agreement Equipment Purchase for Norres College Hall of Fame Ignition Park Infrastructure Phase 1 C Div. B Ignition Park Buildings 1 and 2 Notice to Bidders Relocation on Hill Street Intersection of Chippewa at Michigan and Main Roundabout Improvements Ireland Right-of-Way Acquisition Acquisition Wire Transfer Closing Right-of- Way Main and Lafayette City of South Bend Taxable ED Revenue Bonds Erskine Village Series 2005A Upon a motion by Secretary Inks, seconded by Commissioner Downes and unanimously carried, the Commission approved the Claims submitted July 16, 2015. 4. COMMUNICATIONS Mr. Relos reported Gates Sales and Service renewed their second two-year lease extension for the property located at Main and Western. South Bend Redevelopment Commission Regular Meeting -July 16, 2015 Page 3 5. OLD BUSINESS None. 6. NEW BUSINESS A. River East Development Area (1) Development Agreement for Jefferson/Niles Improvements (121 River Race, LLC/521 Jefferson, LLC) Mr. Fielding stated the development agreement is with developer David Matthews for improvements to the exterior of the Emporium building located at 121 Niles Avenue including removal of the white paint on the original brick fagade, tuck- pointing, construction of a rear multi-story deck, parking lot improvements, new windows, and interior. The building located at 521 Jefferson Boulevard has undergone substantial renovation and the developer has proposed the installation of a French quarter style steel and metal fagade creating an upper deck and greatly improving the appeal of the building. The developer has requested assistance from the Redevelopment Commission to address the improper flow and turn of the Jefferson Street tunnel and the restoration of the parking area which is 50% owned by the Commission. The developer has committed that the new business that will be located in the buildings will create 40 new jobs at $10 per hour. Upon a motion by Vice President Varner, seconded by Secretary Inks and unanimously carried, the Commission approved the development agreement, with an allocation of $87, 000 to the project as described under Local Public Improvements, with 121 River Race, LLC/521 Jefferson, LLC. B. River West Development Area (1) Master Lease and Development Agreement for Speculative Industrial Building at Ameriplex (GLC Portage Prairie, LLC) Mr. Fielding stated in an effort to address the lack of industrial space available, staff proposed the term of a potential speculative industrial building to the Redevelopment Commission in October 2014. Staff was able to negotiate favorable terms with Great Lakes Capital who has agreed to build a 200,000 square foot shell under the proposed agreement with the Commission entering into a five year master lease backed by TIF funding. The summarized terms of the lease are as follows: lease rate of $2. 79 per square foot inclusive of any and all costs associated with the building; a 60 month maximum term; 20% decrease in rent each year; and the lease terminates upon occupancy of a third party business. South Bend Redevelopment Commission Regular Meeting -July 16, 2015 Page 4 Staff presented on Monday, July 13, 2015, the terms of the master lease to the Common Council pursuant to Section 2.5 of the Indiana Code 36-7-14. The request for recommendation was subject to the following express limitations: the term of the master lease may not exceed sixty (60) months; and the total consideration potentially paid by the Commission may not exceed one million six hundred seventy- four thousand dollars ($1,674,000). The Common Council has forwartjed the proposal to the Redevelopment Commission with a favorable recommendation. Upon a motion by Vice President Varner, seconded by Commissioner Ferlic and unanimously carried, the Commission approved the master lease and development agreement for a Speculative Industrial Building at Ameriplex with GLC Portage Prairie, LLC. (2) Development Agreement for Downtown South Bend Hotel at the Hall of Fame (Southhold, LLC) Mr. Fielding stated in 2013, the Department of Community Investment release a call for offers to solicit alternative uses for the space previously occupied by the College Football Hall of Fame with the goal to fulfill three basic tenets: contribute to the tax base; attract visitors to the downtown; and maintain the civic role of the building as a gathering space. Staff has completed negotiations for the project with Southhold, LLC resulting in the sale and repurposing of the Hall of Fame building and the development of a new 120 room hotel along St. Joseph Street. The development will utilize the Hall of Fame structure as its entrance and lobby inclusive of a potential restaurant and additional retail space. The terms of the development agreement are as follows for the project: minimum of 120 guest rooms; private investment of approximately $10 million into the project; the Hall of Fame to be incorporated into the hotel, inclusive· of hotel amenities, registration, and space for development; the gridiron will remain available to the public 30 times per year with a minimum of 60 days' notice by the City to the developer; and solidifies a public/private partnership for up to 5,000 square feet in the lower level of the Hall of Fame to be used by the City free of charge during the period the developer makes installment payments for the purchase of the Hall of Fame building. The terms of the development agreement are as follows: purchase price for the Jefferson lot is $1; the purchase price for the Hall of Fame building is $1.2 million ($50,000 paid upon the signing of the purchase agreement; $150,000 paid upon receipt of the certificate of occupancy for the hotel; $150,000 paid on or before the first anniversary of the occupancy date; $250,000 paid on or before the second anniversary of the occupancy date; and $600,000 paid on or before the third anniversary of the occupancy date); any failure to make the above payments South Bend Redevelopment Commission Regular Meeting -July 16, 2015 Page 5 constitutes a default and converts the purchase agreement into a triple net lease at $12.00 per square foot for all the space above ground and $6.00 per square foot for any subterranean space utilized by the developer with previous payments forfeited; $700,000 will be requested in TIF infrastructure investment; the Redevelopment Commission will cover the maintenance costs specific to the HVAC systems for 36 months; and staff will assist the developer in gaining access to 100 spaces in the Leighton garage and 50 spaces in the Century Center parking lot. Mr. Patel, representative for Southhold, LLC, announced they have secured an agreement with Courtyard by Marriott. Mr. Relos noted the legal description of the development agreement will be completed and added once the property has been replatted. Upon a motion by Commissioner Downes, seconded by Secretary Inks and unanimously carried, the Commission approved the development agreement for the downtown South Bend Hotel at the Hall of Fame with Southhold, LLC. (3) Collateral Assignments for the Hotel LaSalle (RealAmerica/The LaSalle Apartments, LLC) Mr. Relos stated on November 24, 2014, the Commission and RealAmerica entered into a development agreement for the redevelopment of the Hotel LaSalle. The LaSalle Apartments, LLC is a wholly owned subsidiary of RealAmerica. On March 26, 2015, the Commission approved Resolution No. 3282, approving various agreements referenced in the-development agreement. Several of these agreements were anticipated to be assigned to RealAmerica's lender upon financing and contained language to allow their assignment. The three collateral assignment agreements are to be assigned to Lake City Bank, which include the construction management agreement, the development agreement, and the parking lease agreement. Upon a motion by Secretary Inks, seconded by Commissioner Ferlic and unanimously carried, the Commission approved the collateral assignment of construction management agreement, the collateral assignment of development agreement, and the collateral assignment of lease with RealAmerica/The LaSalle Apartments, LLC. C. West Washington-Chapin Development (1) City Cemetery Master Plan Update Mr. Dressler gave a presentation of the City Cemetery Master Plan update, which included project recommendations of internal improvements; entrance improvements; perimeter improvements; Elm, Linden, and LaPorte streetscape improvements; two-way street conversion; and the development of neighborhood South Bend Redevelopment Commission Regular Meeting -July 16, 2015 Page 6 open space. The next steps of the project implementation is tree planting of the Colfax streetscape in 2015; the two-way conversion of Colfax in 2016; the cemetery entrance enhancement in 2016; and the ongoing cemetery programming. D. South Side Development Area (1) Professional Services Proposal for High and Ireland Right-of-Way Legal Description Services (Jones Petrie Rafinski) Mr. Relos stated the professional services proposal from Jones Petrie Rafinski is to complete the necessary right-of-way legal descriptions for improvements to the High and Ireland intersection. Planned improvements to this intersection are to add dedicated left turn lanes into and out of the Erskine Plaza Shopping Center, to relocate the Plaza's sign that is currently in the middle of High Street, and to connect sidewalks along both High and Ireland. Upon a motion by Secretary Inks, seconded by Commissioner Downes and unanimously carried, the Commission approved the professional services proposal for High and Ireland right-of-way legal description services with Jones Petrie Rafinski in a not-to-exceed amount of $2,515. E. Douglas Road Development Area None. F. Other (1) Approval of the Amended and Restated Redevelopment Commission Bylaws Mr. Relos stated the Redevelopment Commission bylaws were adopted in 1992 and slightly revised in 1999. These amended and restated bylaws were made to align them with current practice to more meaningfully guide the Commission's activities and to ensure they are consistent with changes made over the years to Indiana Code 36-7-14, which governs redevelopment commissions. The following changes and/or clarifications were made: non-voting member's role and term; commissioners subject to the City's Ethics Code; election of officers when a vacancy occurs; director appointment; annual organizational meeting now the first meeting of the year; monthly meeting time and days; special meetings; order of business; commission treasurer is the City Controller; and approval by four (4) commissioners necessary to amend the bylaws. Upon a motion by Commissioner Ferlic, seconded by Commissioner Downes and unanimously carried, the Commission approved the amended and restated Redevelopment Commission bylaws. South Bend Redevelopment Commission Regular Meeting -July 16, 2015 Page 7 7. PROGRESS REPORTS Mr. Fielding reported a declaratory resolution has been passed by the Common Council for the speculative building for an eight year tax abatement and a prepackage incentive for companies interested in the building. Vice President Varner requested regular updates on the project and its outcome. Mr. Ford stated Councilmember White requested a budget conversation for Monday, July 20, 2015, regarding tax increment funding (TIF), which is a great opportunity to revisit what TIF is, its uses and policies, and an update on each of the TIF districts. The presentation will include comparisons of the key categories of debt service, infrastructure, parks, jobs, project management, remediation, and public facilities and how decisions are made on incentives. · 8. NEXT COMMISSION MEETING Thursday, July 30, 2015, at 9:30 a.m. 9. ADJOURNMENT President Jones adjourned the meeting at 10:07 a.m. Marcia I. Jones, President