HomeMy WebLinkAbout12-05-08 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
December 5, 2008
10:00 a.m. 227 West Jefferson Boulevard
Presiding: Marcia I. Jones, President South Bend, Indiana
1. ROLL CALL
Members Present: Ms. Marcia Jones, President
Mr. Greg Downes, Vice President
Ms. Nancy King, Secretary
Mr. Hardie Blake, Jr.
Dr. David Varner
Members Absent: Ms. Ann Rosen
Legal Counsel: Mr. Charles S. Leone, Esq.
Mr. Lawrence Meteiver, Esq.
Redevelopment Staf£ Mr. Don Inks, Director
Mrs. Cheryl Phipps, Recording Secretary
Ms. Debrah Jennings, Property Manager
Others Present: Mayor Stephen Luecke
Mr. Jeff Gibney, Community & Economic Development
Mr. Tom Price, Mayor's Office
Mr. Timothy Rouse, Common Council
Ms. Elizabeth Leonard, Community & Econ Development
Ms. Jamie Loo, South Bend Tribune
Ms. Rita Kopala
Ms. GlendaRae Hernandez
Ms. Linda Wolfson, Community Forum for Economic Dev
Mr. Patrick McMahon, Project Future
Mr. Rick Reid, Blackthorn Golf Club
Mr. John Quickstad, Blackthorn Golf Club
Mr. Joe Tillman
Mr. Phillip Faccenda, Jr. Barnes & Thornburg
Mr. Rich Bellis
Ms. Ann Hastings
Mr. Murray Miller
2. APPROVAL OF MINUTES
A. Approval of Minutes of the Regular Meeting of
Friday, November 21, 2008, 2008.
South Bend Redevelopment Commission
Regular Meeting -December 5, 2008
2. APPROVAL OF MINUTES
A. November 21, 2008 continued...
Upon a motion by Mr. Downes, seconded by Ms.
King and unanimously carried, the Commission
approved the Minutes of the Regular Meeting of
Friday, November 21, 2008.
3. APPROVAL OF CLAIMS
COMMISSION APPROVED THE MINUTES OF THE
REGULAR MEETING OF FRIDAY, NOVEMBER
21, 2008
Redevelopment Commission Claims submitted December 5, 2008 for approval.
324 AIRPORT AEDA
AEP 20.75 501 Wenger St SPRK sys/Johnson Blvd
Indiana Michigan Power 275.77 1010 N Bendix Dr Unit Clinic
Indiana Michigan Power 23.35 420 S Williams St.
Rose Pest Solutions 93.00 LaSalle Hotel pest control
Indiana Michigan Power 9.37 520 W Waynes St.
AT & T 27.10 LaSalle Hotel security phone
Northern Construction Bendix Dr. & Voorde Dr. Intersection
Services 116,757.33 Improvements
Walsh & Kelly 2,880.00 Load and haul from Real Service site 12
Loads of buried concrete
420 FUND TIF DISTRICT-SBCDA GENERAL
R.E. McCloskey & 7,000.00 Appraisal Gates Toyota Facilities N Side of
Associates, InC. Western Ave
HOK 8,000.00 Coveleski Stadium -Facility Analysis
422 FUND WEST WASHINGTON
South Bend Heritage
Foundation 1,667.05 Natatorium Building
Total $ 136,753.72
Upon a motion by Mr. Downes, seconded by Mr. Blake COMMISSION APPROVED THE CLAIMS
and unanimously carried, the Commission approved the suBMITTED DECEMBER 5, 2008, AND ORDERED
Claims submitted December 5, 2008, and ordered THE cHECxs To BE RELEASED
checks to be released.
4. COMMUNICATIONS
There were no Communications.
THERE WERE NO COMMUNICATIONS
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South Bend Redevelopment Commission
Regular Meeting -December 5, 2008
5. OLD BUSINESS
There was no Old Business.
6. NEW BUSINESS
A. Public Hearing
(1) Public Hearing on Resolution No. 2524
determining to transfer monies among
various accounts within Fund 619 for the
purpose of defraying the expenses of
certain local public improvements for the
fiscal year beginning January 1, 2008 and
ending December 31, 2008 including all
outstanding claims and obligations, fixing
a time when the same shall take effect .
Ms. Leonard noted that Substitute Resolution
No. 2524 is presented for consideration by
the Commission.
Upon a motion by Ms. King, seconded by
Mr. Blake and unanimously carried, the
Commission agreed to consider Substitute
Resolution No. 2524.
Ms. Leonard noted that Resolution No. 2524
modifies the Blackthorn Golf Course budget
by moving money between funds to allow the
Blackthorn Golf Course accounting system to
remain within budget. The resolution does
not increase the size of the budget; it simply
adjusts the fund totals to allow payment of
existing bills. The biggest change is in the
Administration and Management line. Part
of the management fee for 2007 was not paid
unti12008. The majority of the other
changes are due to increased costs of natural
gas.
THERE WAS NO OLD BUSINESS
Mr. Varner asked if the $12,000 is in
South Bend Redevelopment Commission
Regular Meeting -December 5, 2008
6. NEW BUSINESS (CONT.)
A. Public Hearing
(1) continued...
addition to a usual fee of $96,000. Ms.
Leonard responded that in 2007 the city only
paid them $84,000, so it is making up for the
shortage in 2007. We still owe them $96,000
in 2008.
Mr. Varner noted that the $651,500 shown
transferred from TIF for Debt Service is for a
bond payment. He asked if there are five
more years before the bond is paid off. Mr.
Inks noted that in 2013 we will pay off the
bond with a half payment. Mr. Varner stated
again that he would like to see Blackthorn
Golf Course sold after the bond is paid off.
Ms. Jones opened the Public Hearing on
Substitute Resolution No. 2524 for whoever
wished to speak. There was no one who
wished to speak Ms. Jones closed the Public
Hearing for whatever action the Commission
wished to take.
(2) Approval of Substitute Resolution
No. 2524.
Upon a motion by Ms. King, seconded by
Mr. Downes and unanimously carried, the
Commission approved Substitute Resolution
No. 2524 determining to transfer monies
among various accounts within Fund 619 for
the purpose of defraying the expenses of
certain local public improvements for the
fiscal year beginning January 1, 2008 and
ending December 31, 2008 including all
outstanding claims and obligations, fixing a
time when the same shall take effect.
PUBLIC HEARING ON SUBSTITUTE RESOLUTION
No. 2524
COMMISSION APPROVED SUBSTITUTE
RESOLUTION NO. 2524 DETERMINING TO
TRANSFER MONIES AMONG VARIOUS ACCOUNTS
WITHIN FUND 619 FOR THE PURPOSE OF
DEFRAYING THE EXPENSES OF CERTAIN LOCAL
PUBLIC IMPROVEMENTS FOR THE FISCAL YEAR
BEGINNING JANUARY 1, 2008 AND ENDING
DECEMBER 31, 2008 INCLUDING ALL
OUTSTANDING CLAIMS AND OBLIGATIONS,
FIXING A TIME WHEN THE SAME SHALL TAKE
EFFECT
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South Bend Redevelopment Commission
Regular Meeting -December 5, 2008
6. NEW BUSINESS (CONT.)
B. South Bend Central Development Area
(1) Receipt of Proposals for Management of
City of South Bend and Redevelopment
Commission Parking Garages.
Mr. Inks noted that two proposals were
received from Ampco Parking Systems and
Dennison Parking.
Upon a motion by Mr. Varner, seconded by
Mr. Downes and unanimously carried, the
Commission acknowledged receipt of
proposals from Ampco Parking Systems and
Dennison Parking and referred the proposals
to staff for review and recommendation at a
later meeting.
(2) Receipt of Proposals for Management of
Redevelopment Retail Properties.
Mr. Inks noted that one proposal was
received from CB Richard Ellis Bradley for
management or Redevelopment Retail
Properties.
Upon a motion by Mr. Downes, seconded by
Ms. King and unanimously carried, the
Commission acknowledged receipt of the
proposal from CB Richard Ellis Bradley and
referred the proposal to staff for review and
recommendation at a later meeting.
(3) Receipt of Bids for Master Lease of
Redevelopment Retail Properties.
Mr. Inks noted that one proposal was
received from CB Richard Ellis Bradley for a
Master Lease of Redevelopment Retail
Properties.
COMMISSION ACKNOWLEDGED RECEIPT OF
PROPOSALS FROM AMPCO PARKING SYSTEMS
AND DENNISON PARKING AND REFERRED THE
PROPOSALS TO STAFF FOR REVIEW AND
RECOMMENDATION AT A LATER MEETING
COMMISSION ACKNOWLEDGED RECEIPT OF THE
PROPOSAL FROM CB RICHARD ELLIS BRADLEY
AND REFERRED THE PROPOSAL TO STAFF FOR
REVIEW AND RECOMMENDATION AT A LATER
MEETING
South Bend Redevelopment Commission
Regular Meeting -December 5, 2008
6. NEW BUSINESS (CONT.)
B. South Bend Central Development Area
(3) continued...
Upon a motion by Mr. Downes, seconded by
Ms. King and unanimously carried, the
Commission acknowledged receipt of the
proposal from CB Richard Ellis Bradley and
referred the proposal to staff for review and
recommendation at a later meeting.
C. Airport Economic Development Area
There was no business in the Airport Economic
Development Area.
D. West Washington-Chapin Development Area
There was no business in the West Washington-
Chapin Development Area.
E. South Side Development Area
There was no business in the South Side
Development Area.
F. Northeast Neighborhood Development Area
(1) Certified Technology Park Agreement.
Mr. Inks noted that on August 15, 2008, the
Redevelopment Commission approved the
Certified Technology Park Application and
the related grant application. These were
submitted to the Indiana Economic
Development Corporation (IEDC). For the
past several weeks we have been working
with the IEDC to draft the Certified
Technology Park Agreement and the
Technology Development Grant Fund Grant
COMMISSION ACKNOWLEDGED RECEIPT OF THE
PROPOSAL FROM CB RICHARD ELLIS BRADLEY
AND REFERRED THE PROPOSAL TO STAFF FOR
REVIEW AND RECOMMENDATION AT A LATER
MEETING
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South Bend Redevelopment Commission
Regular Meeting -December 5, 2008
6. NEW BUSINESS (CONT.)
F. Northeast Neighborhood Development Area
(1) continued...
Agreement. These agreements are now ready
for consideration by the Redevelopment
Commission. The Certified Technology
Agreement will also require the approval of
the South Bend Common Council.
Following are highlights from the two
Agreements.
Certified Technology Park Agreement
1. Includes the State allowed maximum term
of 4 years, ending 12/31/12.
2. Requires City to complete acquisition,
demolition and remediation, and invest an
additional $6 million in infrastructure or
other construction costs.
3. Allows City to capture the maximum
(allowed by State law) $5 million in sales
and income taxes.
4. Allows City to capture Personal Property
tax increment in addition to the $5 million in
sales and income taxes.
5. Does not allow for City to capture Real
Property tax increment exclusively for Tech
Park, but does not prohibit collecting this as
part of the Northeast Neighborhood TIF.
The Northeast Neighborhood TIF could fund
activities in the Tech Park to the extent they
are TIF eligible activities.
6. City is to complete acquisition, demolition
and remediation activities by June 1, 2011,
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South Bend Redevelopment Commission
Regular Meeting -December 5, 2008
6. NEW BUSINESS (CONT.)
F. Northeast Neighborhood Development Area
(1) continued...
and Ann Kolata has said this is more than
sufficient time to complete.
7. City to invest its additional $6 million by
12/31/12 to achieve shovel ready condition.
However, the city will not put in roads until
it has developers who are ready to build
there.
8. City required to make an Annual Report
beginning 3/15/10 (for calendar 2009),
including total employment and payroll for
all businesses in the Park and number of jobs
created during the year, nature and extent of
any technology transfer, nature and extent of
any non-technology businesses in the Park,
use and outcome of any State monies used,
an analysis of Park's overall contribution to
the technology based economy in Indiana
(i.e. capital investment and product
development or commercialization).
Technology Development Grant Fund Grant
Agreement
1. $2 million for the purpose of constructing
a business incubator on the IP @ ND site.
2. City to submit Quarterly Progress Reports
(to be supplied by ND).
3. City can Sub-Grant to ND, but City will
remain responsible to State (our Sub-Grant
Agreement with ND will pass on all State
requirements to ND, so ND will be
responsible to City).
South Bend Redevelopment Commission
Regular Meeting -December 5, 2008
6. NEW BUSINESS (CONT.)
F. Northeast Neighborhood Development Area
(1) continued...
4. Business Incubator constructed with State
Grant Funds must remain an incubator for the
useful life of the building (as defined by IRS
depreciation schedules), and this requirement
is being passed on to ND.
5. City will submit claims to State based on
claim documentation provided by ND, and
when City receives State funds the City will
issue check to ND.
Mr. Inks noted that staff recommends
accepting the Certified Technology Park
Agreement and the Technology Development
Grant Fund Grant Agreement.
Mr. Varner noted that not only does the
Grant Fund Grant Agreement allow the city
to capture property taxes, but also
incremental income taxes and sales taxes.
That leaves the city with the same dilemma
as in any TIF area. There may be a great
new project and a lot of activity, but no new
tax revenue stream to pay for increased
services in the area, particularly police and
fire protection. Mr. Varner suggested that we
have to find a way to provide for the cost of
providing the additional police and fire
protection in these areas as the result of new
development. The newest and nicest areas
are free of the expense of providing these
services, deferring the costs to the remainder
of the city. He believes there needs to be
discussion among the Redevelopment
Commission or at the state level to allow for
payment for city services in these newly
developed areas.
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South Bend Redevelopment Commission
Regular Meeting -December 5, 2008
6. NEW BUSINESS (CONT.)
F. Northeast Neighborhood Development Area
(1) continued...
Mayor Luecke noted that the $SM that is
referred to in this agreement is money that
would have otherwise gone to the state.
They are funds that would not otherwise have
been available to the city. This is the state's
participation in this partnership. Local
income taxes still go to the localities; they
are not part of the $SM. The Mayor said he
appreciated Dr. Varner's concern for a way
to fund police and fire services. But we must
continue to invest in economic development
in the community. TIF areas do now have
sunset provisions, so the property tax dollars
will eventually benefit the entire community.
Mayor Luecke noted the important action the
Redevelopment Commission will take today,
memorializing the work of many years and
many significant partners to take advantage
of the intellectual property generated at our
local universities. We believe this provides
seed for new investment, not only at the 12-
acre Innovation Park site and at the 83-acre
Sample Street site, but in other areas of the
community that will create additional
investment that will raise property values and
bring new jobs to the community. It really
ties together important partners: The
University of Notre Dame, Innovation Park,
and the State of Indiana through its Indiana
Economic Development Commission. The
state is making a grant to this proposal, as
well as allowing the city to capture tax
dollars that otherwise would have gone to the
state. The city makes commitments to finish
clearance at the Sample Street site, which has
10
South Bend Redevelopment Commission
Regular Meeting -December 5, 2008
6. NEW BUSINESS (CONT.)
F. Northeast Neighborhood Development Area
(1) continued...
always been our plan, but now has particular
impetus to move forward. Today is a day we
can look to our past and celebrate what South
Bend has been: we are a place that knows
how to create products and bring those
products successfully to market. He asked
the Commission's favorable approval of the
actions today.
Mr. Downes agreed. He said this is the
essence of what redevelopment is all about.
We must focus on the operative word,
incremental. These are additional property
taxes that we are not getting today.
Mr. McMahon congratulated the City of
South Bend as the only technology park in
the State of Indiana where the state has
agreed to the inclusion of a site that is not
already completely cleared and remediated.
That speaks tremendously to the confidence
the state has in the ability of this project to
move forward and how excited they are
about the business activity present. Mr.
McMahon also said that he believes this is
the first technology park acknowledged by
the state that comes with a $2M commitment
to assist in the development. The remainder
of the parks in the State of Indiana have had
to develop the parks themselves, which
speaks to the significant level of confidence
and excitement that the state and other parties
have about where this project might go.
Mr. Varner noted that he thinks the
technology park is a great thing. He didn't
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South Bend Redevelopment Commission
Regular Meeting -December 5, 2008
6. NEW BUSINESS (CONT.)
F. Northeast Neighborhood Development Area
(1) continued...
want to be misunderstood. There will be a
need to pay for the city services required
with this development and we will need to
figure out how to do that. He hopes we can
do that out of TIF revenues to be generated.
Ms. King noted that absent this kind of
activity in our community, we will have
sustainability problems greater than we
currently have.
Ms. Jones suggested the Commission hold an
executive session to discuss how it might
modify, redirect or creatively find a way to
appropriate funds toward the additional costs
the city faces with development like this.
Upon a motion by Mr. Downes, seconded by
Mr. Varner and unanimously carried the
Commission approved the Certified
Technology Park Agreement.
(2) Technology Development Grant Fund
Grant Agreement.
Upon a motion by Mr. Downes, seconded by
Mr. Varner and unanimously carried the
Commission approved the Technology
Development Grant Fund Grant Agreement.
G. Douglas Road Economic Development Area
There was no business in the Douglas Road
Economic Development Area.
COMMISSION APPROVED THE CERTIFIED
TECHNOLOGY PARK AGREEMENT
COMMISSION APPROVED THE TECHNOLOGY
DEVELOPMENT GRANT FUND GRANT
AGREEMENT
12
South Bend Redevelopment Commission
Regular Meeting -December 5, 2008
7. PROGRESS REPORTS
Mr. Inks reported that the Commission established the PROGRESS REPORTS
Douglas Road Economic Development Area in 2003 for
the purpose of widening Douglas Road to accommodate
development between U. S. 23 and the Mishawaka city
limits. We've seen one project go in there already. The
Brown Mackie College being developed with Holladay
Corporation will be the second project in there. As part
of the original vision, the widening of Douglas Road.
Staff has been working for some time to put together the
financing package for construction of the widening of
Douglas Rd. We believe we are about ready to bring
that back to the Commission, either at the December 19
meeting or the first regular meeting in January, in order
to be ready for construction in spring 2009.
Mr. Varner noted that he spoke with a party recently that
may be interested in development there as well because
of the anticipated widening of Douglas Road.
Mr. Varner noted that he had given copies of an article
from the Chicago Tribune to Commissioners noting how
the Kane County baseball team is participating in the
enlargement of its stadium to the tune of $2. SM. And,
there is an agreement for revenue sharing with the
county as well. He said South Bend needs to consider
asking for more participation on some of its projects.
Sometimes we set our expectations too low.
Mr. Blake noted that he is at this time resigning his
position as a Redevelopment Commissioner in order to
avoid a potential conflict of interest as the result of a
proposal that will be coming before the Commission
soon. He has been developing a training program to be
funded by TIF and he would have a paid position with
that training program.
Mr. Blake thanked Mayor Luecke for appointing him
and giving him this opportunity. He noted how much he
has enjoyed his position as a Commissioner and how
much he has learned from the other Commissioners. He
13
South Bend Redevelopment Commission
Regular Meeting -December 5, 2008
7. PROGRESS REPORTS (CONT.)
also said what a good choice Jeff Gibney was for
director of Community and Economic Development.
Mr. Gibney has great vision for the community and
excellent organizational skills.
Mr. Blake said he intends to focus less on the bricks and
mortar side of the community and more on the food,
body, soul and spirit side, where he is most comfortable.
He has a heart to reach out to those who are most at risk,
a generation of young people without any guidance in
their homes. He read a passage from Isaiah which he
takes as his inspiration and mission.
Mr. Blake said that hope changes both perception and
perspective. Common job opportunities and economic
participation is common ground for economic growth.
It's common ground also for economic dialog. Low
income minority communities must become
economically transformed using the same market and
economic principles as any other community. He
suggested the city economic development plan must
include plans which promote wealth and create
infrastructure for the poor. The best way to eliminate
poverty is to increase wealth by giving a hand up.
Ms. Jones thanked Mr. Blake for his service and for
what he has taught her as well.
Mr. Downes echoed Ms. Jones' thoughts and said Mr.
Blake always contributed a refreshing perspective in
discussions.
8. NEXT COMMISSION MEETING
The next meeting of the Redevelopment Commission is NEXT COMMISSION MEET~G
scheduled for Friday, December 19, 2008 at 10:00 a. m.
14
South Bend Redevelopment Commission
Regular Meeting -December 5, 2008
9. ADJOURNMENT
There being no further business to come before the ADJOURNMENT
Redevelopment Commission, Mr. Downes made a
motion that the meeting be adjourned. Mr. Varner
seconded the motion and the meeting was adjourned at
10:47 a.m.
.~~~
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