HomeMy WebLinkAbout10.29.2015 Redevelopment Commission MinutesSOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
October 29, 2015
9:30 a.m. 227 West Jefferson Boulevard
Presiding: Marcia Jones, President South Bend, Indiana
The meeting was called to order at 9:31 a.m.
1. ROLL CALL
Members Present: Marcia Jones, President
David Varner, Vice President
Greg Downes
Gavin Ferlic
Members Absent: Don Inks, Secretary
John Anella
Legal Counsel: Benjamin Dougherty, Esq.
Redevelopment Staff: David Relos, Associate II
Tracy Oehler, Recording Secretary
Others Present: Scott Ford, Executive Director
Chris Fielding, Assistant Executive Director
Brock Zeeb, Director
Laura Mazur, Analyst
Sarah Heintzelman, Associate
Debrah Jennings, Associate
John March, Associate
Cecil Eastman, Financial Specialist Senior
Patrick Roll
Kevin Allen
2. APPROVAL OF MINUTES
A. Approval of Minutes of the Regular Meeting of Thursday, October 15, 2015.
Upon a motion by Vice President Varner, seconded by Commissioner Downes the
motion carried 4-0 (Secretary Inks absent), the Commission approved the Minutes of
the Regular Meeting of Thursday, October 15, 2015.
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Regular Meeting – October 29, 2015
Page 2
3. APPROVAL OF CLAIMS
A. Claims Submitted October 29, 2015
324 Fund River West Development Area
Great Lakes Capital 111,505.00 Reimbursement to Contractor for
Waterproof/Installation of Vapor Barrier at
Catalyst One Ignition Park
Interstate Environmental Services, Inc. 145,651.37 Removal of Lead Based Paint at Ivy Tower
Phase II
Weaver Consultants Group 1,709.06 Ivy Tower
Earth Service 50,788.07 Removal & Disposal PCB Contaminated Soil
at Ivy Tower
Pacific Press Technologies 1,224,219.50 Equipment Purchase for Nello Corp.
Selge Construction Co., Inc. 3,546.87 Chase Plastics Facility Infrastructure
Improvements
Shaffner Heaney Associates, Inc. 20,492.55 Building Façade ACM Panels for Ignition Park
Jones Petri Rafinski 675.00 Inspection Services for Catalyst 1 & 2
Rieth Riley Construction Co., Inc. 85,575.09 Western Avenue Corridor Improvements
Jones Petri Rafinski 3,600.00 Asbestos Survey in Support of Demolition
Abonmarche 220.00 Ignition Park Buildings 1 & 2
Majority Builders, Inc. 174,840.63 Ignition Park Infrastructure Ph 1C, Division B
Walsh & Kelly, Inc. 365,579.00 Ignition Park Infrastructure Ph 1C, Division A
Jones Petri Rafinski 1,700.00 Phase I PNA Facility
Tri-County News 53.58 Notice to Bidders
430 Fund South Side TIF Area No. 1
Lawson-Fisher Associates 8,265.40 Roundabout Intersection Improvements
Chippewa at Michigan & Main Streets
Lawson-Fisher Associates 1,693.12 Main to Lafayette Connector
$2,200,114.24
Upon a motion by Commissioner Downes, seconded by Commissioner Ferlic the motion
carried 4-0 (Secretary Inks absent), the Commission approved the Claims submitted
October 29, 2015.
4. OLD BUSINESS
None.
5. NEW BUSINESS
A. River West Development Area
(1) Approval of Agreement for Sale of Land for Private Development and
Environmental Agreement for 604 Scott Street (Millennium Parcel, LLC)
Mr. Zeeb stated on March 12, 2012, the Commission approved the Memorandum of
Understanding (MOU) with Union Station Technologies Center (USTC) outlining
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Regular Meeting – October 29, 2015
Page 3
phase one development of the Renaissance District. One component of the MOU
was to sell the Millennium site, commonly known as 604 Scott Street, for future
development. Upon completion of remediation of the Studebaker 84 complex, USTC
plans to reorganize the building’s layout, and the Millennium site will provide
construction staging, better long term traffic flow for the facility, and place the
property back on the tax rolls.
The site Purchase Agreement defines the sales price for the property in the amount
of $42,500 including site investment credits towards the purchase price. The cost for
the required new legal description will be divided with a not to exceed amount of
$1,500. The Environmental Agreement provides a five year indemnity with the
Commission’s environmental consultant, Weaver Consultants, providing assistance
in negotiations with Indiana Brownfield for a comfort letter pertaining to the site. The
easement documents also require legal description updates due to the vacation of
United Drive. The cost will be split between USTC and the Commission in an
amount not to exceed $1,500 and paid at closing.
Mr. Dougherty noted Exhibit B (Environmental Restrictive Covenant) of the Purchase
Agreement will be forthcoming once the Developer has received the comfort letter
from IDEM and inserted once received. Additionally, the South Bend Building
Corporation will be the entity taking action on the easement agreements, which are
Exhibit D.
Upon a motion by Commissioner Downes, seconded by Commissioner Ferlic the
motion carried 4-0 (Secretary Inks absent), the Commission approved the
Agreement for Sale of Land for Private Development in the amount of $42,500 and
the Environmental Agreement for 604 Scott Street with Millennium Parcel, LLC.
(2) Approval of Amendment to Existing Environmental Services Contract for the
Ivy Tower Facility Renovation Project (Weaver Consultants Group)
Mr. Zeeb stated on October 25, 2012, the Commission approved an Environmental
Indemnity Agreement (EIA) for remediation of the Studebaker Building 84 site; the
last remaining Studebaker manufacturing building. Remediation has been completed
to the Studebaker 84 and Millennium sites. Phase 1 and Phase 2 Environmental
Assessments for both sites have been submitted to Indiana Brownfields.
Staff is requesting to further engage Weaver Consultants in a contract not to exceed
$40,000 to be the point of contact and negotiate the Commission’s interest based on
the environmental testing and reports. No additional funds are being requested, as
the funding would come from the current environmental cleanup budget. The end
result of the Weaver Consultants/Indiana Brownfields negotiations will be some type
of comfort letter or restrictive covenants that will be recorded and follow the deed of
the land.
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Regular Meeting – October 29, 2015
Page 4
Upon a motion by Commissioner Downes, seconded by Vice President Varner the
motion carried 4-0 (Secretary Inks absent), the Commission approved the
Amendment to the existing Environmental Services Contract for the Ivy Tower
Facility Renovation Project with Weaver Consultants Group in a not to exceed
amount of $40,000.
(3) Establishing the Budget for the Parking Garages
Mr. Zeeb stated on August 27, 2015, the Commission approved Resolution No. 3300
allowing the Parking Garage Fund to borrow $2,000,000 from the Major Moves Fund
to make capital improvements to the three City-owned parking garages. A three year
capital improvement strategy includes $845,849.44 for 2015; $1,250,000 for 2016;
and $1,300,000 for 2017.
Upon a motion by Commissioner Downes, seconded by Commissioner Ferlic the
motion carried 4-0 (Secretary Inks absent), the Commission approved the budget for
the City-owned parking garages for 2015, 2016, and 2017 in the amounts of
$845,849.44, $1,250,000, and $1,300,000 respectively and subject to future River
West Development Area appropriations.
(4) Approval of Development Agreement for 402 North Sheridan (Manufacturing
Technology, Inc.)
Ms. Heintzelman stated Manufacturing Technology, Inc. (MTI), a locally owned and
operated manufacturer, are expanding their operations and are requesting support
from the Commission to assist with infrastructure and development costs. MTI
signed a purchase agreement on a 100,000 square foot vacant building at 402 North
Sheridan, which requires upgrades. The company will be investing over 2.5 million
dollars on real estate improvements, equipment, and other capital expenditures. Job
creation is expected at 26 positions over the next ten years with a minimum hourly
wage of $14. MTI will continue operations at their West Washington Street facility
and the project will represent an extension of their current lines as well as a
consolidation of their Sample Street facility. Staff request approval of $108,850 for
infrastructure needs, including asphalt work, and other project related costs.
Upon a motion by Commissioner Downes, seconded by Vice President Varner the
motion carried 4-0 (Secretary Inks absent), the Commission approved the
Development Agreement for 402 North Sheridan with Manufacturing Technology,
Inc. in the amount $108,850.
(5) Staff Update
Mr. Fielding reported staff has been discussing different strategies on how best to
utilize the land that is owned by the Redevelopment Commission and other City
departments. One of the discussion was concerning the Blackthorn Corporate Park.
He presented diagrams illustrating the current zoning as well as the proposed zoning
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Regular Meeting – October 29, 2015
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which would allow light industrial, which would increase the park’s ability to attract
new businesses like distribution and logistics. Staff is requesting approval to bundle
nine lots for call for offers for developers both locally and nationally instead of listing
each property separately.
Additionally, a meeting was held on October 27, 2015, with the Owners’ Association
at Blackthorn regarding updating the covenants and development guidelines, which
will be brought before the Commission for approval its next meeting. It was also
noted the Redevelopment Commission has been paying the per acre association
dues on the 26 acres of wetlands. Staff anticipates the funds to be discontinued by
2017.
B. Other
(1) Approval of the Annual TIF Neutralization Professional Services Proposal (H.J.
Umbaugh Associates)
Mr. Relos stated the professional services proposal is to provide services for the
annual TIF Neutralization worksheets required by the state law. The worksheet
calculations are done for each TIF area and are used to adjust the base value by
adjusting for natural growth in property values. Increment captured by the TIF area
should be a result of new development, not the natural appreciation in property values
that pre-existed the TIF.
Upon a motion by Commissioner Downes, seconded by Vice President Varner the
motion carried 4-0 (Secretary Inks absent), the Commission approved the annual
TIF Neutralization Professional Services proposal with H.J. Umbaugh Associates in
the not to exceed amount of $12,500.
6. PROGRESS REPORTS
Mr. Fielding reported the Common Council approved a designating resolution for the fourth
and final tax abatement for the former Chase Tower as it required an Economic
Development Commission resolution to allow for a residential target area in the downtown.
Staff is expecting to return to Council in sixty days with the confirming resolutions for all
four tax abatements once the building is subdivided. Staff was able to negotiate 100% of
the project just using tax abatements by following the state’s guidelines. The only cash
investment was $640,000 for this $31 million project.
7. NEXT COMMISSION MEETING
Thursday, November 12, 2015, at 9:30 a.m.
South Bend Redevelopment Commission
Regular Meeting – October 29, 2015
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8. ADJOURNMENT
President Jones adjourned the meeting at 10:05 a.m.
____________________________________ ____________________________________
Brock Zeeb, Director of Economic Resources Marcia I. Jones, President