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HomeMy WebLinkAbout2. A Minutes 12-19-08SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING December 19, 2008 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia 1. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Ms. Marcia Jones, President Mr. Greg Downes, Vice President Ms. Nancy King, Secretary Dr. David Varner Ms. Ann Rosen Mr. Charles S. Leone, Esq. Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Robert Mathia, Economic Development Specialist Ms. Jennifer Laurent, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mr. Jeff Gibney, Community & Economic Dev. Mr. Richard Nussbaum Mr, Tom Price Mr. Hardie Blake, Project hnpact Mr. James Summers, Project Impact Ms. Jamie Loo, South Bend Tribune Ms. Rita Kopala Ms. GlendaRae Hernandez Ms. Linda Wolfson, Community Forum for Economic Dev Mr. Marty Wolfson, Community Forun for Economic Dev Mr. Jeff Vitton, Community Development Mr. Joseph Tillman Mr. Steve Hartz, Value Production Mr. Mark Postello Ms. Jamie Ruiz, CB Richard Ellis Mr. Ty Scopel Ms. Lisa Makowski Mr. Shane Peters, Project Impact Mr. Derck Spier, Abonmarche South Bend Redevelopment Commission Regular Meeting — December 19, 2008 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, December 5, 2008. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, December 5, 2008. 3. APPROVAL OF CLAIMS COMMISSION APPROVFDTIIE MIN L�TES. OF TI IF REGULAR MEETING OF ERMA),. DECEMBER 5, 2008 Redevelopment Commission Claims submitted December 19, 2008 for approval 305 FUND SBCDA BOND Abonmarche 1,705.60 US 31 & Adam Rd interchange Rieth Riley Construction, Inc. 405,671 22 Imprm ernents on both east & west side of Michigan St. fiom Wayne St. North to Colfax Ave. Majority Builders Inc. 200.791.04 Exterior faFade rehabilitation 101 N Michigan St. Troyer Group 365.34 S13- Michi-an Streetscape improv. PHI 324 AIRPORT AE-DA Park Department 2,007.50 Seasonal Mo%aing ZPDA 3,581.13 Development & TIF consulting sip -c DTSB 26 250.00 DoNnto% tat beautification program, streetscape enhancements and business recruitment DHA 9,442.00 Additional survey work requested to locate marked utilities for easement right releases for Transpo & City Sub. Torok Excavating. Inc. 13.800.00 Demolition of 1025 N Bendix Dr Wighunan Petrie 2.651 25 Lafayette Blvd streetscape improvements Blue Waters Group 38 213.75 Related to MIND Professional Services Ken Herceg & Associates 63.000.00 Studebaker Corridor Study Circle Lumber, Inc. 89.55 911 Marrietta Meridian Title Corporation 4.200.00 Owners Insurance related to the MIND project Meridian Title Corporation 700.00 Owners Insurance related to the Portage Praire project Ken Herceg & Associates. Inc. 60.000.00 SB: Studebaker Corridor Study Northern Construction Services 92?07.51 Bendix Dr. & Voorde Dr. South Bend Heritage Foundation. Inc. 9,405.00 Bendix Physicians Office 420 FUND TIE DISTRICT -SBCDA GENERAL_ Meridian Title Corporation 82.324.70 .l.l R 11500.00 Meridian Title Corporation 17.432.82 Indiana Michigan Power 160.09 CB Richard Ellis 975.63 Wire Transfer Due Friday. December 5 Li 8:30 AM GMS Realty. Inc. East bank Plan Phase 11 Purchase of 414 S. William St. from Ronald Zubkoff Closine 1212 %08 (a 9 AM 237 N Michigan St Management Fe & Expense Reimb for LaSalle Hotel South Bend Redevelopment Commission Regular Meeting —Dccernber 19, 2008 3. APPROVAL OF CLAIMS (CONT.) 420 FUND TIE DISTRICT -SBCDA GENERAL Michiaaa Lock & Key. Inc. 12.31 Wightman Petrie 3.195.00 Ralph D. Lain er 3.000.00 RF Pitts & Associates 2.950.00 LaSalle Hotel Medecor key, cut & key tag 118 S Williams St (The Manor) Appraisal ot'Sweet Home Baptist Church 410 S Taylor St. Appraisal 325 -329 S. Lafayette Blvd 423 FUND WFS I WASHINGTON Kaser- Spraker Con,truction. Inc. 80.176.68 Natatorium 426 FUND CENTRAL MEDICAL SERVICE AREA DLZ 19.050.00 Engineering work on Michigan St. S. curve removal 619 BLACKTHORN GOLF COURSE Meadovabrook Golf Group. Inc 8.000.00 Total $ 1.163.858.12 Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved the Claims submitted December- 19, 2008, and ordered cheeks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Tax Abatements (1) Resolution No. 2529 approving an application for real property tax deduction for property located at 719 and 725 Turnock Street in the Northeast Neighborhood Development Area. (Northeast Neighborhood Revitalization Organization & Weiss Homes) CONIMISS10\ APPROVED THE CLAIMS SCBMITTED DECEMBER 19. 2008. AND ORDERED THE CHECKS TO BE RELEASED THERE" ERE NO COMM UNICATIONS THERE WAS NO OLD Bl ',I\[ ,S South Bend Redevelopment Commission Regular Meeting — December 19, 2008 6. NEW BUSINESS (CONT.) A. Tax Abatements (1) continued... Mr. Mathia gave the staff report on the project. The Northeast Neighborhood Revitalization Organization, Inc. and Weiss Homes, Inc. intend to construct two new single family homes. The homes will have approximately 1,300 square feet excluding the basement and will consist of three bedrooms, two to two and a half baths, and an attached two car garage. The cost of the two homes will be approximately $280,000. The Northeast Neighborhood Revitalization Organization, Inc. has not been granted any previous tax abatements. Weiss Homes has been associated with eight abatements which were granted to Kendall- Weiss, LLP between July 2004 and January 2008. The Building Commissioner has reviewed this petition and finds the properties to be properly zoned for the proposed project. The property is located in the Northeast Neighborhood Development Area, which is a Tax Incremental Allocation Area, therefore, approval of the tax abatement petition by the South Bend Redevelopment Commission is required. The project qualifies for a (5) five - year residential tax abatement under the tax abatement ordinance. Mr. Mathia noted that total taxes to be abated during the (5) five -year abatement period are estimated at $5,508. Total taxes to be maid as a result of the project during the (5) five -year abatement period are estimated at S 10,739. Mr. Varner noted that infill housing like this H South Bend Redevelopment Commission Regular Meeting — December 19, 2008 6. NEW BUSINESS (CONT.) A. Tax Abatements (1) continued... is needed and asked if staff has marketed properties for infill housing. Mr. Gibney responded that the NNRO approached Weiss Homes to build these homes. The Triangle Area is not ready yet for development, but the NNRO wanted to get some model homes up in this price range to demonstrate what could be done in the Triangle Area with well - designed homes. These homes are part of that strategy. Ms. Jones noted that the vacant land has produced far less taxes than the property will, even during the abatement period. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2529 approving an application for real property tax deduction for property located at 719 and 725 Turnock Street in the Northeast Neighborhood Development Area. (Northeast Neighborhood Revitalization Organization & Weiss Homes. (2) Resolution No. 2530 approving an application for real property tax deduction for property located at 3615 Voorde Drive in the Airport Economic Development Area. (Fortis Plastics) Mr. Mathia gave the staff report on the project, both real and personal property. Fortis Plastics is an extruder of plastic components used in a variety of industrial and consumer applications. The company is 5 COMMISSION APPROVED RESOLUTION No. 2529 APPROVING AN APPLK'AT[ON FOR REAL PROPFRTY TAX DEDUC -ZION FOR PROPERTY LOCATED AT 7 1 9 AND 725 TURNOCK STREET IN THE NORTHEAST NFIGHBORHOOD DEN ELOPMFNT AREA. (NOR] NEIGHBORHOOD RE%A T A I IZATION ORGANIZATION &. WEISs HOMES South Bend Redevelopment Commission Regular Meeting— December 19, 2008 6, NEW BUSINESS (CONT.) A. Tax Abatements (2) continued... weighing the consolidation of its existing Elkhart operations to South Bend or Henderson, Kentucky. The proposed project site in South Bend is a 92,249 square foot vacant industrial building located at 3615 Voorde Drive that has been vacant for over one year. The South Bend site would require rehabilitation and installation of equipment in the landlord's building. The rehabilitation includes the installation of docks, office build - out /remodeling, new sprinkler system installation, electrical upgrades, HVAC improvements and reception area build out. The total cost of the rehabilitation is estimated at $1,277,000. Fortis Plastics would lease the building from AIC Ventures. As far as the personal property abatement, the equipment to be purchased includes new and used plastic injection mold machines and extruders, computers, IT infrastructure and servers. The used equipment would be acquired from outside the State of Indiana. The equipment to be installed on the site has a total estimated cost of 52,218,900 The applicant is in the early stages of the rehabilitation design and the contracting process. Therefore, it does not have a firm list of contractors. Based on current information it is estimated that the applicant will qualify for a three -year abatement. The length of this period could increase depending on the final selection of the contractors. However, it is not expected to exceed five years. 6 South Bend Redevelopment Commission Regular Meeting — December 19, 2008 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) continued... It is estimated that the total project will retain 146 employees with an annual payroll of $5.545,904. The petitioner has not received any previous tax abatements. The property is properly zoned for the proposed project. The property is located in the Airport Economic Development Area, which is a tax increment allocation area; therefore, the petition for real property tax deduction must first be approved by the South Bend Redevelopment Commission. The project qualifies for a five -year personal property tax abatement and three to five years of real property abatement under the tax abatement ordinance. Staff recommends approving five years of real property abatement, which allows the staff some flexibility when the detail about contractors to be used is known. In the case of the real property abatement, total taxes to be abated during a (3) three - year abatement period are estimated at $41,998. Total taxes to be aid during the three -year abatement period are estimated at S222.531. Total taxes to be abated during a (5) five -year abatement period are estimated at $59,419. Total taxes to be paid during the five -year abatement period are estimated at $381,463. For the personal property abatement, total taxes to be abated during the (5) five -year abatement period are estimated at $86,698. Total taxes to be paid during the (5) five -year 7 South Bend Redevelopment Commission Regular Meeting — December 19, 2008 6. NEW BUSINESS (CONT.) A. Tax Abatements (2) continued... abatement period are estimated at 570,01 3. Lisa Makowski, corporate treasurer for Fortis Plastics, noted that Fortis has been evaluating options to either move from Elkhart to Henderson, Kentucky, or to South Bend. They will be consolidating from three plants to one in whichever location they decide, plus relocating their corporate headquarters and information technology operations to the new location. Fortis Plastics is also working with the State of Indiana for incentives they might offer. They applied for the tax abatements to see how much of a total incentive package could be received. They hope to make their decision on location within a few weeks. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2530 approving an application for real property tax deduction for property located at 3615 Voorde Drive in the Airport Economic Development Area. (Fortis Plastics) (3) Resolution No. 2531 approving an application for personal property tax deduction for property located at 3615 Voorde Drive in the Airport Economic Development Area. (Fortis Plastics) Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2531 approving an application for personal property tax deduction for property located at 8 COMMISSION APPROVED RESOLUTION NO. 2530 APPROVING AN ,APPLIC.AT ION FOR REAL PROPER I Y TAX DEDUCTION FOR PROPFRTY LO( A I ED AT 3615 VOORDE DRIVE'_ IN TI -IE AIRPORT ECONOMIC DEVELOPM FNT AREA. (FORTIS PLASTICS) COMMISSION APPROVED RESOLUTION NO. 2531 APPROVING AN APPLICATION FOR PERSONAL PROPERTY] AX DEDUCTION FOR PROPER] Y LOCATED AT 3615 VOORDF DRIVE IN THE AIRPORI ECONOMIC DEVFL_OPMEN"I -AREA. (FORTIS PLASTICS) South Bend Redevelopment Commission Regular Meeting — December 19, 2008 6. NEW BUSINESS (CONT.) A. Tax Abatements (3) continued... 3615 Voorde Drive in the Airport Economic Development Area. (Fortis Plastics) B. South Bend Central Development Area (1) Contract for Sale of Land (118 N. Main St.) Ms. Laurent noted that on June 3 the Commission approved an option agreement for purchase of the property at 118 N Main St., the surface Parking Lot owned by Mary Coyne Investments, Inc., adjacent to the historic JMS office building. The Commission's interest in the property is related to parking assembly for a proposed redevelopment of the JMS building. At that time it was agreed that the Commission would secure an Option on the property and dispose of it through the public disposition process, setting an offering price equal to the Commission's negotiated purchase price. On November 4 the Commission approved an offer to purchase the property for that price, $200,000, from John Freidline, and directed staff and legal counsel to prepare a contract for sale of land. The contract is presented for your approval at this time, although Mr. Freidline has been traveling and has not seen the finished contract. Legal counsel has advised that the Commission may approve it subject to final review by Mr. Freidline. Any substantive changes will, of course, be brought back to the Commission for approval. 9 South Bend Redevelopment Commission Regular Meeting — December 19, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (1) continued.,. Mr. Varner asked if there is a contingency that the property revert back to Mary Coyne if Mr. Freidlinc does not proceed with the purchase. Ms. Laurent responded that there will be a simultaneous closing. The Commission won't end up with the property. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved the Contract for Sale of Land (118 N. Main St.) (2) Approval to exercise Option to Purchase (118 N. Main St. from Mary Coyne Investments) Ms. Laurent noted that this is a request to allow staff to exercise the Option to Purchase with Mary Coyne Investments so that the sale can be completed. COMM [SS [ON APPROVFDTHE CONTRACT FOR SAFE OF LAND (1 18 N. MAIN ST.) Upon a motion by Mr. Downes, seconded by COMMISSION AUTHORIZED STAFF TO EXERCISE Mr. Varner and unanimously carried, the THE OPTION TO PURCHASE (1 18 N. MAIN ST. Commission authorized staff to exercise the FROM MARY COYNE INVESTMENTS) Option to Purchase (1 18 N. Main St. from Mary Coyne Investments) (3) Staff report on Proposals for Management of City of South Bend and Redevelopment Commission Parking Garages. Ms. Jennings noted that two proposals were received on December 5 for management of the City of South Bend and Redevelopment Commission parking garages, one from Anipco Systems which currently manages the South Bend Redevelopment Commission Regular Meeting — December 19, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (3) continued... Commission's garages. and one from Denison Systems. After careful review, staff has determined that Denison's expenses are approximately $60.000 higher than Ampco's. Staff has been satisfied with Ampco's management of the garages for the past ten years, so recommends accepting the proposal from Ampco. Mr. Inks noted that we discussed with Ampco the lower fee, to make sure they were not planning to cut staff or services to make up for the fee. They will not be doing that. It appears that we can attribute the savings to a competitive proposal process. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved the proposal from Ampco Systems for Management of City of South Bend and Redevelopment Commission Parking Garages. (4) Staff report on Proposals for Management of Redevelopment Retail Properties. Ms. Jennings noted that CB Richard Ellis submitted the only proposal for management of the retail properties and for master leasing the retail properties. Staff recommends accepting the proposal for management of the retail properties, but rejecting the proposal for the master lease, allowing staff thirty days to try to negotiate better terms. Mr. Inks noted that with the proposed annual COMMISSION APPROVFD ME PROPOSAL FROM AMPCo SYSTEMS FOR MANAGFMFNT OF CITY OF SOUTH BEND AND REDEVELOPMENT COMMISSION PARKING GARAGES South Bend Redevelopment Commission Regular Meeting — December 19. 2008 6. NEW BUSINESS (CONT.) B. South Bend Central DeNclopment Area (4) continued... lease payments being $38.532. statt'didn't feel that covered the Commission's costs to the extent necessary. The retail monies all go into a separate fund where they are restricted for use on the retail properties as well as maintenance of the plaza for Leighton Center. Our expenses for maintaining the plaza are close to $50,000 per year. By excepting this proposal, we would be going from a slightly better than break even position to a master lease paying $38,000, leaving us $12,000 short for plaza maintenance. In addition, we would still be at risk for capital expenses in the retail spaces. As much as the Commission would like to be out of the retail management business, we can't recommend accepting that offer. CB Richard Ellis is agreeable to continue to negotiate the Master Lease. If we can negotiate a suitable Master Lease, the Management Agreement that that will be terminated and the Master Lease will be brought to the Commission for approval. If not, the Management Agreement will remain operative. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission accepted the proposal fi-orn CB Richard Ellis for Management of Redevelopment Retail Properties, with a thirty -day opportunity to terminate if an agreement can be negotiated on the Master Lease of Redevelopment Retail Properties. 12 CON I M ISS ION ACCEP I ED THE PROPOSAL FROM CB RICHARD GLLIS FORMAN AGEMFNT OF REDEVELOPMENT RETAIL PROPER] IES. WITH A THIRTY -DAY OPPORTUNITI' TOTERMINATE IF AN AGREEMENI- CAN BE NEGOTIATED ON THE MASTER LEASE OF REDEVELOPMENT RETAIL PROPERTIES South Bend Redevelopment Commission Regular Meeting — December 19. 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (5) Staff report on Proposals for Master Lease of Redevelopment Retail Properties. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried the Commission rejected the proposal from CB Richard Ellis for a Master Lease of Redevelopment Retail Properties, allowing staff thirty days to try to negotiate better terns for the Master Lease which it would bring before the Commission again for approval. (6) Filing of Resolution No. 2543 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2009, and ending December 31, 2009, including all outstanding claims and obligations, fixing a time when the same shall take effect and setting a Public Hearing on Resolution No. 2543 for 10:00 a.m., January 16, 2009. (Fund 425, Leighton Retail Space and Courtyard) Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission accepted for filing Resolution No. 2543 and set a public hearing on Resolution No. 2543 for 10:00 a.m.. January 16, 2009 (Fund 425, Leighton Retail Space and Courtyard) 13 COMMISSION REJECTED THE PROPOSAL FROM CB RICHARD ELLIS FOR A MASTER LEASE OF RFDF \'FL.OPMENT RETAIL PROPER -IIFS. ALLOWING STAFF THIRTY DAYS "FO TRI TO NEGOTIATE BFTTER I ERMS FOR THE MASTER LEASE WHICH IT WOULD BRING BEFORE THE COMMISSION AGAIN FOR APPROVAL COMMISSION ACCFP "FED FOR FILING RESOLUTION NO. 2543 AND SET A PUBLIC HEARING ON RESOLUTION NO. 2543 FOR 10:00 A.M.. JANUARY 16, 2009 (Fi'ND425. LEIGHTON RE I AII_ SPACE AND COURTYARD) South Bend Redevelopment Commission Regular Meeting — December 19, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) Proposal for Job Training Services Ms. Leonard noted that she has worked with Project Impact over the last six months or so to refine a budget for that program. Under Indiana Statute, tax increment finance funds may be used for job training in the TIF area under certain circumstances. One of those circumstances is job training of residents of an Urban Enterprise Zone. That is the way this proposal was designed. We often hear from area businesses that there is a lack of job -ready and trained individuals to fill positions which would enable these businesses to expand. Project Impact proposes to work with a hard -to -place population of formerly incarcerated felons. By intervening with this population, it is hoped they can find the path to legitimate and fulfilling work and not return to a life of desperation and crime. Mr. James Summers indicated that lie would be the executive director of Project Impact and would lead the program for life skills training and career development for the individuals who would be in the program. Ms. King had several questions for Mr. Summers. She asked how many full time equivalent employees would be employed by the program. Mr. Summers responded that they expect 150 participants in the program with 50 participants completing the 12 -month program and a minimum of 25 participants being hired per year. 14 South Bend Redevelopment Commission Regular Meeting — December 19, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (I) Proposal for Job Training Services Ms. King asked how many staff will be employed by Project Impact. Mr. Summers responded that there will be five full -time and two part -time staff. Ms. King asked Mr. Summers how he saw the long tern sustainability of the program, particularly being able to become self - supporting. Mr. Summers said they have designed the program to hit the ground running, with staff who are well trained in working with the high -risk participants. They expect to be fully funded by TIF in the first year, but reduce the reliance on TIF each successive year by getting funding from businesses who benefit from their participants and by grant- writing. The S 1.9M requested from TIF in the budget is for three years of full funding, but Mr. Summers does not expect to need that entire amount if they are able to raise money as expected in year three and in decreasing amounts each year thereafter. Mr. Gibney noted that one of the full time positions will be a grant - writer. There are funds available nationwide for this type of program, but the program needs to be in existence to apply. TIF will provide most of the funding for two years while the program gets established and develops a track record on which to request grant funds. Staff has had contact with at least one major foundation interested in South Bend and seeing a multi- faceted approach to meeting the nanotechnology demands. 15 South Bend Redevelopment Commission Regular Meeting — December 19, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) Proposal for Job Training Services Mr. Downes asked Mr. Gibney where be expected most of the funds to come from-- - state and federal? Mr. Gibney responded that lie does not know for sure, but thinks 75% from state and federal sources and 25% fi•om private foundations is a reasonable expectation. Ms. King noted the selection of the Apprentice Academy for job training and asked why Project Impact wouldn't use Ivy Tech. Mr. Summers responded that some of the training will be very specialized and specific for individual companies. The Apprentice Academy targets providing specific skills that a company is looking for. Project Impact will provide the support necessary to make the high -risk participant successful in the training and job retention. Mr. Gibney pointed out that Ivy Tech is becoming more of a community college with a two -year transfer degree program. The kinds of training we are talking about for Project Impact is not the kind of training Ivy Tech does. When people graduate from Project Impact, they will have ajob, not a certificate with which to look for a job. Steve Hartz, Value Production Inc., said his company is an aerospace manufacturer and also makes medical devices. They have a growing need for employees. College -raduates don't have the skills Value Production needs, nor do applicants with associates degrees. The Apprentice 16 South Bend Redevelopment Commission Regular Meeting — December 19, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (l) Proposal for Job Training Services Academy model fits them very well. The skill sets they need are very "hands on.*' Also, with traditional schools like Ivy Tech, there are barriers such as needing a GED. At the Apprentice Academy that is not a requirement. When a person has had a hard life, but wants to pick himself up and make something of himself, these barriers to starting are too much of a hurdle. The Apprentice Academy allows a person to start seeing progress and later go back and till in the gaps such as a GED. Mr. Downes asked how soon the first participants might be placed into a job. Mr. Summers responded probably 90 days. Mr. Downes asked when Project Impact would begin. Mr. Summers responded the first of the year, 2009. They have already identified some individuals in the area that should be good candidates. Mr. Downes asked how many employers have been identified to participate. Mr. Hartz responded that the Airport Industrial Park has mostly aerospace and medical manufacturing. Those types of manufacturing are experiencing double digit growth and expect that to continue. Mr. Summers pointed out that Project Impact's participants will be willing to start out at a lower salary and work into earning traditional salaries for this type of employment. 17 South Bend Redevelopment Commission Regular Meeting — December 19, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) Proposal for Job Training Services Ms. King asked what capacity Project Impact will have to not only provide support to the individuals Currently in the program, but also those that have moved on, but may still require occasional support — a growing number in that situation each year. Mr. Summers replied that the individuals in the program make a commitment to support one another. Ms. King asked what kind of reporting will the Commission receive on outcomes. Mr. SUnlme]'s said he expects to provide a written monthly report describing performance and being available quarterly to come before the Commission for questions. Mr. Gibney noted that the Commission is only being asked to approve a one -year budget for the program. By the time the program comes back for further funding, we expect it to require only 50% of the total budget in TIF funding. Ms. King noted that this is a program for men, initially. Mr. Summers agreed that is it. initially. Previously incarcerated men are the individuals of greatest need. But Project Impact hopes to eventually be more inclusive. There is no restriction. Anyone who asks to be served by the program will be considered, but initially the outreach will be to men. Mr. Varner noted that because of decreasing dollars available to the city, the program will 18 South Bend Redevelopment Commission Regular Meeting — December 19, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) Proposal for Job Training Services need to live or die on its own success. The city will not be able to continue to fund it just because it has, previously. He hopes Project Impact can become self - sufficient. There is going to be enormous competition for these dollars. Mr. Gibney noted Memorial Health System's policy of "tithing" to the Healthy Communities Initiative and suggested the Commission could commit to a similar "tithe" of. maybe. 5% of its TIF increment toward a job training fund. He'd like the Commission to consider such a commitment. Ms. Jones thanked everyone for coming. listening, and asking good questions. Now it is time to become ambassadors for the program. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission accepted the proposal from Project Impact for Job Training Services in the Airport Economic Development Area. (2) Filing of Resolution No. 2542 appropri- ating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2009, and ending December 31, 2009 including all outstanding claims and obligations, fixing a time when the same shall take effect and setting a Public Hearing on Resolution No. 2542 for 10:00 a.m., January 16, 2009. (Blackthorn Golf Course) 19 COMMISSION ACCEPTED THE PROPOSAL FROM PROJECT IMPACT FOR JOB TRAINING SERVICES IN TI IF AIRPORT- ECONOMIC DEVELOPMENT AREA South Bend Redevelopment Commission Regular Meeting — December 19, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) continued... Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried. the Commission accepted for filing Resolution No. 2542 appropriating monies for the purpose of defraying the expenses of certain local public improvements for the fiscal year beginning January 1, 2009, and ending December 31, 2009 including all outstanding claims and obligations, fixing a time when the same shall take effect and setting a Public Hearing on Resolution No. 2542 foi- 1 0:00 a.m., January 16, 2009. (Blackthorn Golf Course) (3) Resolution No. 2544 related to acquisition of property in the Airport Economic Development Area. (Burton properties) Mr. Schalliol noted that the Burton properties are ten properties owned by Barry and Ilene Burton (eight parcels) and Burton Investments (two parcels) which are needed for the relocation of TRANSPO headquarters and maintenance operations. The properties are generally located at the northwest corer of Franklin and Indiana Streets. Three of the properties are north of a rail line and are on the C'ommission's acquisition list: the other seven are south of the rail line and have not been put on the acquisition list. They are being donated to the City of South Bend through the Board of Public Works. Resolution No. 2544 sets the offering price for the three properties north of the rail line at 5690,300, total. Staff recommends approval. 20 COMMISSION ACCEPTED FOR FILING RESOLU "PION NO. 2542 APPROPRIA IING MONIES FOR THE PGRPOSE OF DEFRAYING I H1 I'_XPI_NSES OFCFRLAIN LOCALPUB1 K IMPROA'EMISIS FOR THE FISCAL YEAR BEGINNING JANLAR) 1, 2009. AND ENDING DECEMBER 31. 20091A( 11DING ALL OUTSTANDING CLAIMS AND OBLIGA I ION'S, FIXING A I IME WHEN THE SAME SHAI_I_ TAKF i i I I( I AND Sr i I1NG A PUBLIC HILARING ON RFSOLl 1lON No. 2542 FOR 10:00 A.M.. JANLARI 16, 2009. (131ACKTHOR', Got r COLRSI -) South Bend Redevelopment Commission Regular Meeting — December 19, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued... Mr. Sehalliol noted that there is a tenant on the site, Waste Management. Staff will be meeting with them soon to discuss relocation of their business. Mr. Downes asked if there are any environmental concerns with the property. Mr. Sehalliol responded that the site is blacktopped. The buildings have no basements, and no issues that we know of. Mr. Gibney noted that the city is in the process of having extensive environmental assessment done on the entire Studebaker technology site. This site will be evaluated as part of that assessment. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2544 related to acquisition of property in the Airport Economic Development Area. (Burton properties) (4) Resolution No. 2545 approving and accepting a counter offer for the acquisition of property in the AEDA. (Burton properties) Mr. Sehalliol noted that the Burtons and Burton Investments have submitted a counter offer in the amount of S688,077.50. S 100.000 to Barry and Ilene Burton and S 188.077.50 to Burton Investments. Staff recommends approval. 21 COMMISSION APPROVED RESOLUFION NO. 1-544 RELATED TO ACQGISITION OF PROPERTI 1A HE AIRPOR r ECONOMIC DEVELOPMENT ARI: \. (BURTON PROPERTIES) South Bend Redevelopment Commission Regular Meeting— December 19, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (4) continued... Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2545 approving and accepting a counter offer for the acquisition of property in the AEDA. (Burton properties) (5) Contract with South Bend Heritage Foundation for design and construction management of the renovation of Bendix Family Physicians building (1010 Bendix Drive) Ms. Laurent noted that this is a contract with South Bend Heritage Foundation for design and construction management pertaining to construction oversight for the renovation of the Bendix Family Physicians building at 1010 Bendix Drive. Contract terms will allow for a fee of 10% of all pay applications related to the project from H.G. Christman, design and engineering consultants, as well as reimbursements for pay applications paid directly by SBHF. to be paid to SBHF in furtherance of the project. The contract has a not -to- exceed limit of 545.000. The contract is similar to others the Commission has entered into with South Bend Heritage Foundation for construction management. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried. the Commission approved the Contract with South Bend Heritage Foundation for design and construction management of the renovation of Bendix Family Physicians building ( 10 10 Bendix Drive) 22 COMMISSION APPROVED RESOLUTION NO. 2545 APPROA'ING AND ACCEPTING A COUNT ER OFFER FOR THE A( QEISITION OF PROPERTY IN THE AEDA. (BUR ION PROP FRTIES) COMMISSION APPROVED THE CONTRACT WITH SOUTH BEND HERITAGE FOUNDATION FOR DESIGN AND CONSTRUCTION MANAGEMENT OF THE RENOVATION OF BENDIx FAMIL) ' PHYSICIANS BUILDING ( 1010 BENDIX DRIVE) South Bend Redevelopment Commission Regular Meeting— December 19, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (6) Resolution No. 2.546 related to acquisition of property in the AEDA (614 Arnold) Mr. Schalliol noted that 614 Arnold St. is part of the Oliver Industrial Park acquisition area. Oliver Industrial Park surrounds several properties which have been offered voluntary acquisition. Resolution No. 2546 sets the offering price for the two parcels at $65,500. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2546 related to acquisition of property in the AEDA (614 Arnold) (7) Resolution No. 2547 approving and accepting a counter offer for the acquisition of property in the AEDA (614 Arnold) Mr. Schalliol noted that the property owner has made substantial improvements to the property since the appraisals were done, to keep the property livable. They have therefore made a counter offer of S75.000. There will be no relocation costs in addition to that amount Staff recommends approval. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2547 approving and accepting a counter offer for the acquisition of property in the AEDA (614 Arnold) 23 COMMISSION APPROVED RESOLUTION NO. 2546 RELATED TO AC'QU IS ITION OF PROPERLY IN THE AFDA (614 ARNOLD) COMMISSION APPROVED RESOLUTION NO. 2547 APPROVING AND ACCEPIING A COUNTER OFFER FOR THE ACQU ISIIION OF PROPERTY IN THE AFDA (614 ARNOLD) South Bend Redevelopment Commission Regular Meeting — December 19, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (8) Resolution No. 2548 related to acquisition of property in the AEDA (1117 Grace) Mr. Schalliol noted that Resolution No. 2548 set the offering price for 1 117 Grace St. at $35,000, the average of two appraisals. The owner, MaryAnn Manuszak, has accepted that price. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2548 related to acquisition of property in the AEDA (1 1 17 Grace) D. West Washington- Chapin Development Area (1) Extension Addendum to Program Management Agreement with the City of South Band and the South Bend Heritage Foundation, Inc. (Dollar House Program) Mr. links noted that the extension would let that contract run to the end of December 2009. Currently, it expires December 31. 2008. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved the Extension Addendum to Probyam Management Agreement with the City of South Bend and the South Bend Heritage Foundation, Inc. (Dollar House Program) 24 COMMISSION APPROVED RESOLUTION No. 2548 RELATED TO ACQUISITION OF PROPERTY INTHE AEDA (1 1 17 GRA(E) COMMISSION .APPROVED THE EXTENSION ADDENDUM TO PROGRAM MANAGEMENT AGREEMENT WITH THE C ITY OF SOU I H BEND AND THE SOU I BEND HERITAGE FOUNDATION. INC'. (DOLLAR HOUSE PROGRAM) South Bend Redevelopment Commission Regular Meeting— December 19, 2008 6. NEW BUSINESS (CONT.) E. South Side Development Area There was no business in the South Side Development Area. F. Northeast Neighborhood Development Area (1) Extension Addendum to Program Management Agreement with the City of South Bend and the Northeast Neighborhood Revitalization Organization, Inc. (Dollar House Program) Mr. Inks noted that the extension would let that contract run to the end of December 2009. Currently, it expires December 31, 2008. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried. the Commission approved the Extension Addendum to Program Management Agreement with the City of South Bend and the Northeast Neighborhood Revitalization Organization. Inc. (Dollar House Program) G. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. H. Other (1) Resolution No. 2526 commending Hardie Blake, Jr. for Exemplary Service to the Redevelopment Commission. Mr. Inks noted that Mr. Blake resigned from the Commission on December 5. Mr. 25 COMMISSION APPROVED I HE EXTENSION ADDENDUM TO PROGRAM MANAGEMENT AGREEMENT WITH THE CITY OF SOOT H BEND AND THE NORTHEAST NEIGHBORHOOD REVITALIZATION ORGANIZATION. INC. (Do[ HOUSE PROGRAM) South Bend Redevelopment Commission Regular Meeting — December 19, 2008 6. NEW BUSINESS (CONT.) H. Other (1) continued... Downes read Resolution No. 2526 into the record. Resolution No. 2526 1 Resolution of*the South Bend Rcdcvclopment Commission Commending Hardie Blake, Jr. fbr Exemplum Service To the Redevelopment Commission WHEREAS, man n people express concern about urban problems and their impact upon the community: and WHEREAS, some people demonstrate their concern by personal irrroh'enrent in the process ofseekingsolutions; and WHEREAS, a yer.y feu people are both frilling and able to bring cr degree of dedication that culminates in real, measurable progress, enriching the life of the eonununity: urrd WHEREAS, Hardie ser red as a member of the South Bend Redevelopment Commission since Junuary 2. 2003: and WHEREAS, dining his tenure orr the Commission Hardie has had an active role in projects such as expansion of the South Bend Chocolate Cuf�, rehabilitation of the Americcnr Bunk Building, East Bank plurnring. The fine, Erskine lilluge, Erskine Commons, the Bosch expansion, rcstorution of the .1 atatoriunr, Portage Prairie. 26 South Bend Redevelopment Commission Regular Meeting — December 19, 2008 b. NEW BUSINESS (CONT.) H. Other (1) continued... Covelcski Park Neighborhood Initiative, the Northeast Neighborhood Development Area, demolition of South Bend Stumping Planet, the Sit tdehaker /Oliver Plow Works redc1'c1opn7cnt project and the Oliver Industrial Park; WHEREAS, through his passion and c0171717it177Cilt to issues of Social 111stice , n n7 Particular the creation o(en7ph711071 opportunities fbr the and the importance of reinforcing the digninv and respect.for all human beings in the puhlic decision - making process, Hardie has brought U nwrC aneani77gfitl and Cngctging level of dialogue to the Commission,- FVIIEREAS, Hardie tmselfishly gave of his time for the hetterment of the Community with no concern for individual honor or recognition, and has placed cnn inshvmcmtal role in setting policy and negotiataw though the details of manry important projects; and iMEREAS, Hardie has been commuted to the public process of decision making; NO fV THEREFORE, BE IT RESOL ['ED that the South Bend Redevelopment Commission hcrehv commends Hardie Blake Jr. for his cxenlplary commitment and distinguished service to the South Bend Redevelopment C0771117iSS(O17 cold tl7C City of South Bend; thanks him fin- the outstanding conuvibutions he has n7adC, cntd declaurS it Will si7ncerch' miss his diligent work and his presence art 27 South Bend Redevelopment Commission Regular Meeting — December 19, 2008 6. NEW BUSINESS (CONT.) H. Other (1) continued... future rrleeting =s. ADOPTED at a meeting of the South Beiid Redevelopment Commission held on Decemher 19, 2008, at 1308 County -Cite- Building, 227 W Jeff ,rson Boulevard, South Bend. Indiunu 46601. Upon a motion by Mr. Varner, seconded by COMMISSION APPROVED RESOUIrION No. 2526 Ms. King and unanimously carried, the COMMENDING HARDIE BLARE, JR. FOR Commission approved Resolution No. 2526 EXEMPLARY SERVICE ToinEREDEVELOPMENT COMMISSION commending Hardie Blake, Jr. for Exemplary Service to the Redevelopment Commission. (2) Resolution No. 2527 setting Procedures for Temporary Use Agreements. Mr. Inks noted that Resolution No. 2527 proposes continuing the procedures used in 2008 that allow staff to proceed with Temporary Use Agreements for using Commission owned property, ratifying them at a subsequent Commission meeting. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2527 setting Procedures for Temporary Use Agreements. (3) Resolution No. 2.528 setting Procedures for Contracts for Property Related Services. Mr. Inks noted that Resolution No. 2528 proposes continuing the procedures used in 2008 that allow staff to secure contracts for 28 COMMISSION APPROVED RESOLUTION No. 2527 SETTING PROCEDURES FOR TEMPORARY USE AGREEMENTS South Bend Redevelopment Commission Regular Meeting — December 19. 2008 6. NEW BUSINESS (CONT.) H. Other (3) continued... appraisals, title work, demolition, engineering, and environmental assessment, ratifying them at a subsequent Commission meeting. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Conunission approved Resolution No. 2528 setting Procedures for Contracts for Property Related Services. (4) Resolution No. 2532 setting a public hearing on the appropriation of tax increment financing revenues from various allocation areas for the payment of certain obligations and expenses related to their respective allocation areas and other related matters. Mr. Inks noted that Resolution No. 2532 sets a public hearing for 10:00 a.m., January 16, 2009 on the appropriation of tax increment financing revenues from each of the TIF allocation areas. This action must be taken each year for each of the TIF areas where the Commission expects to spend money. Mr. Inks noted that the amounts to be allocated are estimated at a high level. After the public hearings are advertised, the appropriation may not exceed the advertised amount. Mr. Varner asked how these numbers coordinate with the annual notice to the Auditor that there are no excess TIF funds. Mr. Inks responded that in the middle of each calendar year when we give that notification 29 COMMISSION ,APPROVED RESOLUTION No. 2528 SEIZING PRO( EDCRES FOR CONTRACTS FOR PROPERTY RELATED SERVICES South Bend Redevelopment Commission Regular Meeting— December 19, 2008 6. NEW BUSINESS (CONT.) H. Other (4) continued... to the Auditor, we are making that notice for the upcoming year. Therefore, that notice was made for 2009 in mid -2008. These allocation numbers for 2009 will have been referenced in July 2008. Mr. Varner asked staff to provide a 5 -year pro -forma of the revenue expected from each TIF area at the January 16 meeting. Mr. hiks indicated that as staff prepares its 2009 budgets, it does not even know what 2008 revenues were. He is also not fully comfortable that he understands the full impact of the circuit breaker legislation. Once we see what the tax collections are for 2009, we will be better able to project for 2010. He will provide the best numbers lie can from the projections Umbaugh has calculated at the next meeting. Upon a motion by Mr. Varner, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2532 setting a public hearing for 10:00 a.m., January 16, 2009, on the appropriation of tax increment financing revenues from various allocation areas for the payment of certain obligations and expenses related to their respective allocation areas and other related matters. 7. PROGRESS REPORTS There was no report. 30 COMMISSION APPROVED RESOLUTION No. 2532 2532 M I I IAG .-A PUBLIC HEARING FOR 10:09 A.M...I.AvLARY 16, 2009. ON THE APPROPRIATION OF TAX INC'RFMFNT FINANCING RE\ FNL FS FROM VARIOUS ALLOCATION AREAS FORTH[ PA) MFNT OP CERTAIN OBLIGATIONS AND EXPENSES RELATED TO THEIR RESPECTIVE ALLOCATION AREAS AND OTHER RELATED MATTERS PROGRESS REPORTS South Bend Redevelopment Commission Regular Meeting — December 19, 2008 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING its Annual Organizational Meeting scheduled for Friday, January 2, 2009 at 10:00 a.m. 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 11:35 a.m. Donald E. Inks, Director 31