Loading...
HomeMy WebLinkAbout12-19-08 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING December 19, 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 Dr. David Varner Members Absent: Ms. Ann Rosen Legal Counsel: 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 Impact 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 Forum 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. Derek 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. CM Upon a motion by Mr. Downes, seconded by Mr. OMMISSION APPROVED THE INUTES OF THE RMF,D 5, EGULAR EETING OF RIDAY ECEMBER Varner and unanimously carried, the Commission 2008 approved the Minutes of the Regular Meeting of Friday, December 5, 2008. 3. APPROVAL OF CLAIMS 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 Improvements on both east & west side of Michigan St. from Wayne St. North to Colfax Ave. Majority Builders Inc. 200,791.04 Exterior façade rehabilitation 101 N Michigan St. Troyer Group 365.34 SB-Michigan Streetscape improv. PHI 324 AIRPORT AEDA Park Department 2,007.50 Seasonal Mowing ZPDA 3,581.13 Development & TIF consulting srvc DTSB 26,250.00 Downtown 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 Wightman 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 4,200.00 Owners Insurance related to the MIND project Meridian Title Corporation 700.00 Owners Insurance related to the Portage Praire Meridian Title Corporation project Ken Herceg & Associates, Inc. 60,000.00 SB: Studebaker Corridor Study Northern Construction Services 92,207.51 Bendix Dr. & Voorde Dr. South Bend Heritage Foundation, Inc. 9,405.00 Bendix Physicians Office 420 FUND TIF DISTRICT-SBCDA GENERAL Meridian Title Corporation 82,324.70 Wire Transfer Due Friday, December 5 @ 8:30 AM GMS Realty, Inc. JJR 12,500.00 East bank Plan Phase II Meridian Title Corporation 17,432.82 Purchase of 414 S. William St. from Ronald Zubkoff Closing 12/12/08 @ 9 AM Indiana Michigan Power 160.09 237 N Michigan St CB Richard Ellis 975.63 Management Fe & Expense Reimb for LaSalle Hotel 2 South Bend Redevelopment Commission Regular Meeting –December 19, 2008 3. APPROVAL OF CLAIMS (CONT.) 420 FUND TIF DISTRICT-SBCDA GENERAL Michiana Lock & Key, Inc. 12.31 LaSalle Hotel Medecor keys cut & key tag Wightman Petrie 3,195.00 118 S Williams St (The Manor) Ralph D. Lauver 3,000.00 Appraisal of Sweet Home Baptist Church 410 S Taylor St. RE Pitts & Associates 2,950.00 Appraisal 325-329 S. Lafayette Blvd 422 FUND WEST WASHINGTON Kaser-Spraker Construction, 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 Meadowbrook Golf Group, Inc. 8,000.00 Total $ 1,163,858.12 CC Upon a motion by Ms. King, seconded by Mr. Downes OMMISSION APPROVED THE LAIMS D19,2008, SUBMITTED ECEMBER AND ORDERED and unanimously carried, the Commission approved the THE CHECKS TO BE RELEASED Claims submitted December 19, 2008, and ordered checks to be released. 4. COMMUNICATIONS TC There were no Communications. HERE WERE NO OMMUNICATIONS 5. OLD BUSINESS TOB There was no Old Business. HERE WAS NO LD USINESS 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) 3 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 paid as a result of the project during the (5) five-year abatement period are estimated at $10,739. Mr. Varner noted that infill housing like this 4 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. CRN.2529 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AN APPLICATION FOR REAL Mr. Varner and unanimously carried, the PROPERTY TAX DEDUCTION FOR PROPERTY Commission approved Resolution No. 2529 719725TS LOCATED AT AND URNOCK TREET IN approving an application for real property tax NN THE ORTHEAST EIGHBORHOOD deduction for property located at 719 and 725 DA.(N EVELOPMENT REA ORTHEAST NR Turnock Street in the Northeast EIGHBORHOOD EVITALIZATION O&WH RGANIZATION EISS OMES 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 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 $2,218,900 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 paid during the three-year abatement period are estimated at $222,531. 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 $70,013. 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. CRN.2530 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AN APPLICATION FOR REAL Ms. King and unanimously carried, the PROPERTY TAX DEDUCTION FOR PROPERTY Commission approved Resolution No. 2530 3615VD LOCATED AT OORDE RIVE IN THE approving an application for real property tax AEDA. IRPORT CONOMIC EVELOPMENT REA deduction for property located at 3615 (FP) ORTIS LASTICS 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) CRN.2531 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AN APPLICATION FOR PERSONAL Ms. King and unanimously carried, the PROPERTY TAX DEDUCTION FOR PROPERTY Commission approved Resolution No. 2531 3615VD LOCATED AT OORDE RIVE IN THE approving an application for personal AEDA. IRPORT CONOMIC EVELOPMENT REA property tax deduction for property located at (FP) ORTIS LASTICS 8 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. Freidline 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. CC Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED THE ONTRACT FOR SL(118N.MS.) ALE OF AND AIN T 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. C Upon a motion by Mr. Downes, seconded by OMMISSION AUTHORIZED STAFF TO EXERCISE OP(118N.MS. THE PTION TO URCHASE AIN T Mr. Varner and unanimously carried, the MCI) FROM ARY OYNE NVESTMENTS Commission authorized staff to exercise the Option to Purchase (118 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 Ampco Systems which currently manages the 10 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. C Upon a motion by Ms. King, seconded by OMMISSION APPROVED THE PROPOSAL FROM ASMC MPCO YSTEMS FOR ANAGEMENT OF ITY Mr. Downes and unanimously carried, the SBR OF OUTH END AND EDEVELOPMENT Commission approved the proposal from CPG OMMISSION ARKING ARAGES 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 11 South Bend Redevelopment Commission Regular Meeting –December 19, 2008 6. NEW BUSINESS (CONT.) B. South Bend Central Development Area (4) continued… lease payments being $38,532, staff 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. C Upon a motion by Mr. Downes, seconded by OMMISSION ACCEPTED THE PROPOSAL FROM CBREM ICHARD LLIS FOR ANAGEMENT OF Mr. Varner and unanimously carried, the RRP, EDEVELOPMENT ETAIL ROPERTIES WITH A Commission accepted the proposal from CB - THIRTYDAY OPPORTUNITY TO TERMINATE IF AN Richard Ellis for Management of AGREEMENT CAN BE NEGOTIATED ON THE Redevelopment Retail Properties, with a MLRR ASTER EASE OF EDEVELOPMENT ETAIL P thirty-day opportunity to terminate if an ROPERTIES agreement can be negotiated on the Master Lease of Redevelopment Retail Properties. 12 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. CCB Upon a motion by Mr. Downes, seconded by OMMISSION REJECTED THE PROPOSAL FROM REML ICHARD LLIS FOR A ASTER EASE OF Mr. Varner and unanimously carried the RRP, EDEVELOPMENT ETAIL ROPERTIES Commission rejected the proposal from CB ALLOWING STAFF THIRTY DAYS TO TRY TO Richard Ellis for a Master Lease of M NEGOTIATE BETTER TERMS FOR THE ASTER Redevelopment Retail Properties, allowing L EASE WHICH IT WOULD BRING BEFORE THE C staff thirty days to try to negotiate better OMMISSION AGAIN FOR APPROVAL terms 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) C Upon a motion by Mr. Varner, seconded by OMMISSION ACCEPTED FOR FILING RN.2543 ESOLUTION O AND SET A PUBLIC Mr. Downes and unanimously carried, the RN.2543 HEARING ON ESOLUTION O FOR Commission accepted for filing Resolution 10:00 ..,J16,2009(F425, AM ANUARY UND No. 2543 and set a public hearing on LRSC) EIGHTON ETAIL PACE AND OURTYARD Resolution No. 2543 for 10:00 a.m., January 16, 2009 (Fund 425, Leighton Retail Space and Courtyard) 13 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 he 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 (1) 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 term 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 $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 he expected most of the funds to come from--- state and federal? Mr. Gibney responded that he does not know for sure, but thinks 75% from state and federal sources and 25% from 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 a job, 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 graduates 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 (1) 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 fill 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. Summers 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. C Upon a motion by Mr. Downes, seconded by OMMISSION ACCEPTED THE PROPOSAL FROM PIJTS ROJECT MPACT FOR OB RAINING ERVICES Mr. Varner and unanimously carried, the AED IN THE IRPORT CONOMIC EVELOPMENT Commission accepted the proposal from A REA 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 South Bend Redevelopment Commission Regular Meeting –December 19, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (2) continued… C Upon a motion by Mr. Downes, seconded by OMMISSION ACCEPTED FOR FILING RN.2542 ESOLUTION O APPROPRIATING MONIES Mr. Varner and unanimously carried, the FOR THE PURPOSE OF DEFRAYING THE EXPENSES Commission accepted for filing Resolution OF CERTAIN LOCAL PUBLIC IMPROVEMENTS FOR No. 2542 appropriating monies for the J1,2009, THE FISCAL YEAR BEGINNING ANUARY purpose of defraying the expenses of certain D 31,2009 AND ENDING ECEMBER INCLUDING , local public improvements for the fiscal year ALL OUTSTANDING CLAIMS AND OBLIGATIONS FIXING A TIME WHEN THE SAME SHALL TAKE beginning January 1, 2009, and ending PH EFFECT AND SETTING A UBLIC EARING ON December 31, 2009 including all outstanding RN. 254210:00 .., ESOLUTION O FOR AM claims and obligations, fixing a time when J16,2009.(BG ANUARY LACKTHORN OLF the same shall take effect and setting a Public C) OURSE Hearing on Resolution No. 2542 for 10:00 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 corner of Franklin and Indiana Streets. Three of the properties are north of a rail line and are on the Commission’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 $690,300, total. Staff recommends approval. 20 South Bend Redevelopment Commission Regular Meeting –December 19, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (3) continued… Mr. Schalliol 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. Schalliol 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. CRN.2544 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Mr. Varner and unanimously carried, the AEDA. IRPORT CONOMIC EVELOPMENT REA Commission approved Resolution No. 2544 (B) URTON PROPERTIES 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. Schalliol noted that the Burtons and Burton Investments have submitted a counter offer in the amount of $688,077.50, $300,000 to Barry and Ilene Burton and $388,077.50 to Burton Investments. Staff recommends approval. 21 South Bend Redevelopment Commission Regular Meeting –December 19, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (4) continued… CRN.2545 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AND ACCEPTING A COUNTER OFFER Mr. Varner and unanimously carried, the FOR THE ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 2545 AEDA.(B) URTON PROPERTIES 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 $45,000. The contract is similar to others the Commission has entered into with South Bend Heritage Foundation for construction management. CC Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED THE ONTRACT WITH SBHF OUTH END ERITAGE OUNDATION FOR Mr. Varner and unanimously carried, the DESIGN AND CONSTRUCTION MANAGEMENT OF Commission approved the Contract with BF THE RENOVATION OF ENDIX AMILY South Bend Heritage Foundation for design P(1010BD) HYSICIANS BUILDING ENDIX RIVE and construction management of the renovation of Bendix Family Physicians building (1010 Bendix Drive) 22 South Bend Redevelopment Commission Regular Meeting –December 19, 2008 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (6) Resolution No. 2546 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. CRN.2546 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Ms. King and unanimously carried, the AEDA(614A) RNOLD 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 $75,000. There will be no relocation costs in addition to that amount. Staff recommends approval. CRN.2547 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O APPROVING AND ACCEPTING A COUNTER OFFER Ms. King and unanimously carried, the FOR THE ACQUISITION OF PROPERTY IN THE Commission approved Resolution No. 2547 AEDA(614A) RNOLD approving and accepting a counter offer for the acquisition of property in the AEDA (614 Arnold) 23 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 1117 Grace St. at $35,000, the average of two appraisals. The owner, MaryAnn Manuszak, has accepted that price. CRN.2548 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O RELATED TO ACQUISITION OF PROPERTY IN THE Ms. King and unanimously carried, the AEDA(1117G) RACE Commission approved Resolution No. 2548 related to acquisition of property in the AEDA (1117 Grace) D. West Washington-Chapin Development Area (1) Extension Addendum to Program Management Agreement with the City of South Bend and the South Bend Heritage Foundation, 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. CE Upon a motion by Ms. King, seconded by OMMISSION APPROVED THE XTENSION APM DDENDUM TO ROGRAM ANAGEMENT Mr. Downes and unanimously carried, the ACSB GREEMENT WITH THE ITY OF OUTH END Commission approved the Extension SBHF, AND THE OUTH END ERITAGE OUNDATION Addendum to Program Management I.(DHP) NC OLLAR OUSE ROGRAM Agreement with the City of South Bend and the South Bend Heritage Foundation, Inc. (Dollar House Program) 24 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. CE Upon a motion by Ms. King, seconded by OMMISSION APPROVED THE XTENSION APM DDENDUM TO ROGRAM ANAGEMENT Mr. Downes and unanimously carried, the ACSB GREEMENT WITH THE ITY OF OUTH END Commission approved the Extension NN AND THE ORTHEAST EIGHBORHOOD Addendum to Program Management RO,I. EVITALIZATION RGANIZATION NC Agreement with the City of South Bend and (DHP) OLLAR OUSE ROGRAM 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 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 A Resolution of the South Bend Redevelopment Commission Commending Hardie Blake, Jr. for Exemplary Service To the Redevelopment Commission WHEREAS, many people express concern about urban problems and their impact upon the community; and WHEREAS, some people demonstrate their concern by personal involvement in the process of seeking solutions; and WHEREAS, a very few people are both willing and able to bring a degree of dedication that culminates in real, measurable progress, enriching the life of the community; and WHEREAS, Hardie served as a member of the South Bend Redevelopment Commission since January 2, 2003; and WHEREAS, during his tenure on the Commission Hardie has had an active role in projects such as expansion of the South Bend Chocolate Café, rehabilitation of the American Bank Building, East Bank planning, The Vine, Erskine Village, Erskine Commons, the Bosch expansion, restoration of the Natatorium, Portage Prairie, 26 South Bend Redevelopment Commission Regular Meeting –December 19, 2008 6. NEW BUSINESS (CONT.) H. Other (1) continued… Coveleski Park Neighborhood Initiative, the Northeast Neighborhood Development Area, demolition of South Bend Stamping Plant, the Studebaker/Oliver Plow Works redevelopment project and the Oliver Industrial Park; WHEREAS, through his passion and commitment to issues of social justice ," in particular the creation of employment opportunities for the disadvantaged, and the importance of reinforcing the dignity and respect for all human beings in the public decision-making process, Hardie has brought a more meaningful and engaging level of dialogue to the Commission; WHEREAS, Hardie unselfishly gave of his time for the betterment of the community with no concern for individual honor or recognition, and has played an instrumental role in setting policy and negotiating through the details of many important projects; and WHEREAS, Hardie has been committed to the public process of decision making; NOW, THEREFORE, BE IT RESOLVED that the South Bend Redevelopment Commission hereby commends Hardie Blake Jr. for his exemplary commitment and distinguished service to the South Bend Redevelopment Commission and the City of South Bend; thanks him for the outstanding contributions he has made; and declares it will sincerely miss his diligent work and his presence at 27 South Bend Redevelopment Commission Regular Meeting –December 19, 2008 6. NEW BUSINESS (CONT.) H. Other (1) continued… future meetings. ADOPTED at a meeting of the South Bend Redevelopment Commission held on December 19, 2008, at 1308 County-City Building, 227 W. Jefferson Boulevard, South Bend, Indiana 46601. CRN.2526 Upon a motion by Mr. Varner, seconded by OMMISSION APPROVED ESOLUTION O HB,J. COMMENDING ARDIE LAKE R FOR Ms. King and unanimously carried, the ESR XEMPLARY ERVICE TO THE EDEVELOPMENT Commission approved Resolution No. 2526 C OMMISSION 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. CRN.2527 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O PTU SETTING ROCEDURES FOR EMPORARY SE Mr. Varner and unanimously carried, the A GREEMENTS Commission approved Resolution No. 2527 setting Procedures for Temporary Use Agreements. (3) Resolution No. 2528 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 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. CRN.2528 Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED ESOLUTION O PC SETTING ROCEDURES FOR ONTRACTS FOR Mr. Varner and unanimously carried, the PRS ROPERTY ELATED ERVICES Commission 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 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. Inks 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 he can from the projections Umbaugh has calculated at the next meeting. CRN.2532 Upon a motion by Mr. Varner, seconded by OMMISSION APPROVED ESOLUTION O 253210:00 SETTING A PUBLIC HEARING FOR Ms. King and unanimously carried, the ..,J16,2009, AM ANUARY ON THE Commission approved Resolution No. 2532 APPROPRIATION OF TAX INCREMENT FINANCING setting a public hearing for 10:00 a.m., REVENUES FROM VARIOUS ALLOCATION AREAS January 16, 2009, on the appropriation of tax FOR THE PAYMENT OF CERTAIN OBLIGATIONS increment financing revenues from various AND EXPENSES RELATED TO THEIR RESPECTIVE ALLOCATION AREAS AND OTHER RELATED allocation areas for the payment of certain MATTERS obligations and expenses related to their respective allocation areas and other related matters. 7. PROGRESS REPORTS PR There was no report. ROGRESS EPORTS 30 South Bend Redevelopment Commission Regular Meeting –December 19, 2008 8. NEXT COMMISSION MEETING NCM The next meeting of the Redevelopment Commission is EXT OMMISSION EETING its Annual Organizational Meeting scheduled for Friday, January 2, 2009 at 10:00 a.m. 9. ADJOURNMENT A There being no further business to come before the DJOURNMENT 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. 31