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Home My WebLink About2. Minutes 2/20/09SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING February 20, 2009 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 Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Ms. Stephanie Spivey Legal Counsel: Mr. Charles S. Leone, Esq. Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Ms. Debrah Jennings, Property Manager Mr. David Relos, Economic Development Specialist Others Present: Mr. Tom Price, Mayor's Office Ms. Elizabeth Leonard Mr. Richard Nussbaum Ms. Jamie Loo, South Bend Tribune Ms. Rita Kopala Ms. Linda Wolfson, Community Forum for Economic Dev Ms. Jones acknowledged the recent appointment of Ms. Stephanie Spivey, to the Commission, anon-voting representative from the South Bend Community School Board, appointed by Mayor Luecke. 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, February 6, 2009. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, February 6, 2009. COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, FEBRUARY 6, 2009 South Bend Redevelopment Commission Regular Meeting -February 20, 2009 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted February 20, 2009 for approval. 305 FUND SBCDA BOND Lehman & Lehman Inc Majority Building Inc 324 AIRPORT AEDA The Blue Waters Group Indiana Michigan Power Indiana Michigan Power HG Christman Construction Botkin & Hall, LLP Sopko, Nussbaum, Inabnit &Kaczmarek Diamond Environmental Services, Inc. 11,596.40 Design of Century Center Streetscape 117,548.06 101 North Michigan Exterior 53,505.43 Marketing for MIND project area 205.45 1010 N Bendix Dr. Unit Clinic 26.36 420 S William St. 15,008.00 Building Renovation 1010 Bendix Dr. 2,532.60 Ignition Park 3,780.00 Legal Service 1,200.00 1202 S Lafayette 420 FUND TIF DISTRICT-SBCDA GENERAL Sopko, Nussbaum, Inabnit & Kaczmarek Wightman Petrie Indiana & Michigan Power Co DTSB Ampco System Parking 422 FUND WEST WASHINGTON Sopko, Nussbaum, Inabnit & Kaczmarek 428 FUND AIRPORT BOND 2003 Abonmarche 435 FUND DOUGLAS ROAD Sopko, Nussbaum, Inabnit & Kaczmarek Total 1,788.75 Legal Service 3,576.25 118 S William St. (The Manor) 219.25 237 N Michigan St. 17,187.50 DTSB Beautification Program 1,713.05 St. Joseph St & 225 S. Main St Lot's 315.00 700.00 112.50 $ 231,014.60 Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission approved the Claims submitted February 20, 2009, and ordered checks to be released. Legal Service Bendix Dr. Rehabilitation Projects Legal Services COMMISSION APPROVED THE CLAIMS SUBMITTED FEBRUARY 2O, 2009, AND ORDERED THE CHECKS TO BE RELEASED 2 South Bend Redevelopment Commission Regular Meeting -February 20, 2009 4. COMMUNICATIONS There were no Communications. THERE wExE rro COMMUNICATIONS 5. OLD BUSINESS There was no Old Business. THERE wAS No OLD BusirrESs 6. NEW BUSINESS A. Public Hearing (1) Public Hearing on Substitute Resolution No. 2562 appropriating tax increment financing revenues from the Airport Economic Development/Urban Enterprise Zone Special Zone Fund for the payment of certain obligations and expenses related to the Airport Economic Development Area and the Urban Enterprise Zone. Mr. Inks noted that Substitute Resolution No. 2562 makes its approval subject to the Common Council establishing the Airport Economic Development/Urban Enterprise Zone Special Zone Fund on Monday, February 23. If that bill is not passed by the Common Council, this appropriation would be void. The amount of the appropriation remains the same as was published. Ms. Leonard noted that the Commission previously appropriated funds for Project Impact from the Airport Economic Development Area Allocation Area No. 1 Fund. Subsequent investigation revealed that we needed to establish a separate fund and appropriate the funds intended for Project Impact from that fund. Mr. Inks noted that the Public Hearing file is complete, containing: (1) a copy of South Bend Redevelopment Commission Regular Meeting -February 20, 2009 6. NEW BUSINESS (CONT.) A. Public Hearing (1) continued... Resolution No. 2561 determining to make the appropriation and setting the public hearing on Resolution No. 2562; (2) a copy of the Notice of Hearing; (3) a copy of Substitute Resolution No. 2562, the subject of the public hearing; (4) An affidavit from. Carol Smith, Advertising, Director of the South Bend Tribune, that the Notice of Hearing was published in that newspaper on February 6, 2009; (5) an affidavit from Richard Andrysiak, Classified Manager of the Tri- CountyNews, that the Notice of Hearing was published in that newspaper on February 6, 2009. Ms. Jones opened the Public Hearing for PUBLIC HEARING ON RESOLUTION N0.25C)3 whoever wished to be heard concerning Resolution No. 2562. There was no one who wished to be heard. Ms. Jones closed the public hearing. Mr. Inks said that legal counsel has advised that agenda item 6.C.(1) should be approved prior to, approval of Resolution No. 2562. He asked that item 6.C.(1) be moved up on the agenda to be considered at this time. There was no objection and the item was so moved. C. Airport Economic Development Area (1) Resolution No. 2563 transferring tax increment financing revenues from the Airport Economic Development Allocation Area Fund to the Airport Economic Development/Urban Enterprise Zone Special Zone Fund. 4 South Bend Redevelopment Commission Regular Meeting -February 20, 2009 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... Mr. Inks noted that Resolution No. 2563 is a companion item to the appropriation. It transfers approximately $578,000 of tax increment financing revenues from the Airport Economic Development Allocation Area Fund to the Airport Economic Development/Urban Enterprise Zone Special Zone Fund. Those are personal property taxes collected on the A.J. Wright property in years 2005, 2006 and 2007. The A.J. Wright property is the only property in the Zone area that will be generating tax increment revenue for the Commission. Those funds are the only funds to be transferred to this new fund. Future revenues from A.J. Wright's personal property taxes would automatically be directed to this fund. When taxes are collected from 2008, there will be an additional $230,000 added to the fund, for a total of approximately $809,000. The appropriation for Project Impact is only $623,000. The transfer helps to establish the fact that there is cash on hand and expected revenues that will meet or exceed the appropriation that the Commission is considering in Resolution No. 2562. Ms. Jones asked what will happen to excess funds in the new fund, since the Commission's commitment to Project Impact is for only one year. Mr. Inks responded that legal counsel has advised that the funds can be used for any other eligible TIF purpose in that Zone area. 5 South Bend Redevelopment Commission Regular Meeting -February 20, 2009 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (1) continued... Mr. Downes asked about TIF revenues from A.J. Wright real property. Mr. Inks responded that the only portion of the AEDA TIF area that is overlapped by the Urban Enterprise Zone is the former Sample-Ewing Development Area (SEDA). For several years now the real property increment from the former SEDA area has been negative. The Commission has been acquiring a lot of property and demolishing it, which diminishes the increment. Several Commissioners were concerned about removing TIF revenue from the broader AEDA and restricting its use to a small area. They asked for a description of the boundary of the overlapped area. Ms. Leonard brought a map. showing the overlapped area, which was roughly the size of the former SEDA, including Ignition Park and LaSalle Square. Commissioners were then satisfied that the overlapped area was not too restrictive for use of the excess funds. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2563 transferring tax increment financing revenues from the Airport Economic Development Allocation Area Fund to the Airport Economic Development/Urban Enterprise Zone Special Zone Fund. COMMISSION APPROVED RESOLUTION NO. 2563 TRANSFERRING TAX INCREMENT FINANCING REVENUES FROM THE AIRPORT ECONOMIC DEVELOPMENT ALLOCATION AREA FUND TO THE AIRPORT ECONOMIC DEVELOPMENT/URBAN ENTERPRISE ZONE SPECIAL ZONE FUND 6 South Bend Redevelopment Commission Regular Meeting -February 20, 2009 6. NEW BUSINESS (CONT.) A. Public Hearing (2) Commission approval of Substitute Resolution No. 2562. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously carried, the Commission approved Resolution No. 2562 transferring tax increment financing revenues from the Airport Economic Development Allocation Area Fund to the Airport Economic Development/Urban Enterprise Zone Special Zone Fund. B. .South Bend Central Development Area There was no business in the South Bend Central Development Area. D. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. E. South Side Development Area There was no business in the South Side Development Area. F. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. G. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. COMMISSION APPROVED RESOLUTION NO.2562 TRANSFERRING TAX INCREMENT FINANCING REVENUES FROM THE AIRPORT ECONOMIC DEVELOPMENT ALLOCATION AREA FUND TO THE AIRPORT ECONOMIC DEVELOPMENT/URBAN ENTERPRISE ZONE SPECIAL ZONE FUND 7 South Bend Redevelopment Commission Regular Meeting -February 20, 2009 6. NEW BUSINESS (CONT.) H. Ratification of Service Contract As authorized by the Commission, Mr. Inks approved a proposal from Meridian Title for title searches on nineteen properties in the Main/Western project block at a cost of $1900. Upon a motion by Ms. King, seconded by Mr. Alford and unanimously carried, the .Commission ratified the Service Contract approved by staff since February 6, 2009. I. Ratification of Temporary Use Agreement As authorized by the Commission Mr. Inks approved use of 1533 S. Lafayette by R D-N-P between February 1 and February 28, 2009 to do soil borings. Upon a motion by Ms. King, seconded by Mr. Alford and unanimously carried, the Commission ratified the Temporary Use Agreement approved by staff since February 6, 2009. 7. PROGRESS REPORTS Mr. Inks distributed a comprehensive summary of TIF finances that he prepared for the Common Council in response to its questions. The summary contains frequently asked questions and answers, maps of the TIF areas, dates the TIF areas were established and are due to end, the size of the areas, total assessed value in each area, pay'08 revenues expected in each area, cash available at the end of 2008 and 2008 expenditures, a five-year revenue and expense history for each area, a listing of outstanding debt and the three-year plans for each area. COMMISSION RATIFIED THE SERVICE CONTRACT APPROVED BY STAFF SINCE FEBRUARY F>, ZOO9 THE COMMISSION RATIFIED THE TEMPORARY USE AGREEMENT APPROVED BY STAFF SINCE FEBRUARY 6, 2009 PROGRESS REPORTS South Bend Redevelopment Commission Regular Meeting -February 20, 2009 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT coMMrssiorr MEETitvG scheduled for Friday, March 6, 2009 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Varner made a motion that the meeting be adjourned. Ms. King seconded the motion and the meeting was adjourned at 10:30 a.m. Donald E. Inks, Director 9